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.

In the interim period of the fiscal year under review, sales volume of petroleum products and gas decreased. As a result, net sales were 120,421 million yen (down 2.5% year on year). In terms of profits and losses, primarily due to an improvement in profitability in each business, operating profit was 695 million yen (up 186.8% year on year), ordinary profit was 1,046 million yen (up 196.4% year on year), and profit attributable to owners of parent was 437 million yen (up 172.8% year on year).

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

Sales decreased due to factors such as a decline in LP gas energy unit consumption accompanying higher summer temperatures, despite an increase in kerosene sales volume during the first three months of the fiscal year under review. In terms of profit and loss, the loss was reduced 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 interim period of the fiscal year under review, net sales were 27,022 million yen (down 2.2% year on year), and operating loss was 222 million yen (compared to operating loss of 420 million yen in the previous year).

[Energy Solution Business (B to B Business)]

Both sales and profitability decreased due to a decline in spot trading in industrial gas sales.

As a result of the above, in the Energy Solution Business (B to B Business) for the interim period of the fiscal year under review, net sales were 82,315 million yen (down 3.6% year on year), and operating profit was 360 million yen (down 28.0% year on year).

[Non-energy Business]

Overall for Non-energy Businesses, both sales and profit were up, mainly due to strong performance in the following businesses. The circumstances of each business are outlined below.

For the Bicycle sharing business operator Sinanen Mobility Plus Co., Ltd., as of September 30, 2025, the scale of the business has grown to more than 15,000 bicycles, and the number of uses has been growing steadily. Systems business operator Minos Co., Ltd. saw steady growth in users of its flagship electricity customer management system. Comprehensive building maintenance business operator Sinanen Axia Co., Ltd. benefited from expanding its area of building maintenance operations for multi-family housing, while the facility management business for funeral halls, hospitals, and other facilities also performed well.

As a result of the above, in Non-energy Businesses for the interim period of the fiscal year under review, net sales were 10,978 million yen (up 5.0% year on year), and operating profit was 635 million yen (up 89.9% 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).