The Group is accelerating the shift to a stronger management foundation and advancing growth strategies to achieve the vision of "Evolution into a comprehensive energy life creation group that contributes to achieving a decarbonized society" based on the 3rd Medium-Term Management Plan focusing on the 100th anniversary of its founding in FY2027. As announced in timely disclosures on December 27, 2024, we are working together as a group under a new management structure to re-examine the business portfolio from a perspective of profitability and capital effectiveness improvement and integrate and restructure the core businesses of the Group.

The energy market environment during the first three months of the fiscal year under review was characterized by a downward trend in crude oil prices and propane contract prices, which affect the purchasing prices of petroleum and LP gas related to the Group's mainstay businesses, due to concerns about an economic slowdown triggered by U.S. policies and anticipated production increases from OPEC+.

As a result, net sales for the first three months of the fiscal year under review were 63,153 million yen (down 0.6% year on year), almost unchanged from the same period of the previous year. In terms of profits and losses, primarily due to an increase in sales volume of petroleum products, operating profit was 726 million yen (up 126.6% year on year), ordinary profit was 987 million yen (up 58.9% year on year), and profit attributable to owners of parent was 506 million yen (up 49.6% year on year).

[Retail/Wholesale Energy & Related Business (B to C Business)]

Sales increased primarily due to an increase in sales volume of kerosene.

Profit increased primarily due to an increase in sales volume of kerosene mentioned above and a reduction in SG&A expenses.

As a result of the above, in the Retail/Wholesale Energy & Related Business (B to C business) for the first three months of the fiscal year under review, net sales were 15,513 million yen (up 2.3% year on year), and operating profit was 310 million yen (up 124.0% year on year).

[Energy Solution Business (B to B Business)]

Sales decreased due to a decline in spot trading in industrial gas sales.

Profit increased primarily due to an increase in sales volume of petroleum products.

As a result of the above, in the Energy Solution Business (B to B Business) for the first three months of the fiscal year under review, net sales were 42,098 million yen (down 2.0% year on year), and operating profit was 200 million yen (up 39.9% year on year).

[Non-energy Business]

Overall for Non-energy Businesses, both sales and profits were up, mainly due to strong performance in the bicycle sharing business and systems business.

The circumstances of each business are outlined below.

Bicycle sharing business operator Sinanen Mobility Plus Co., Ltd. is promoting development of bicycle sharing service DAICHARI locations. As of June 30, 2025, the scale of the business has grown to more than 15,000 bicycles, and the number of uses has been growing steadily. Both sales and profits were up as a result.

Systems business operator Minos Co., Ltd. posted an increase in sales and profit due to steady demand for its flagship LP gas backbone operation system and electricity customer management system.

Comprehensive building maintenance business operator Sinanen Axia Co., Ltd. posted lower profits primarily due to rising costs from inflation and increased personnel expenses, despite the increase in sales due to the contribution from the expansion of its area of building maintenance operations for multi-family housing and strong performance of the facility operation business such as funeral halls and hospitals.

As a result of the above, in the Non-energy Business for the first three months of the fiscal year under review, net sales were 5,488 million yen (up 1.9% year on year), and operating profit was 299 million yen (up 51.7% year on year).

In order to respond to the changes in the environmental conditions of the times, such as the diversification in energy demand and the societal demand for decarbonization brought on by the spread of energy-saving devices and changing lifestyles, the Group started its 3rd Medium-Term Management Plan that aims for an evolution into a comprehensive energy life creation group that contributes to achieving a decarbonized society from FY 2023. To achieve that vision, we will strengthen our management foundation at an accelerated pace by steadily implementing growth strategies such as transforming our business portfolio and improving capital efficiency.

The full-year financial results forecasts for the next fiscal year are net sales of 367,300 million yen (up 15.8% year-on-year), operating profit of 4,400 million yen (up 9.7% year-on-year), ordinary profit of 4,900 million yen (up 9.3% year-on-year), and profit attributable to owners of parent of 3,000 million yen (down 4.9% year-on-year).