Sinanen Holdings Group based on its 3rd Medium-Term Management Plan toward the 100th anniversary of its founding in FY 2027. To achieve the Company's vision of "Evolution into a comprehensive energy life creation group that contributes to achieving a decarbonized society," the Company is accelerating shift to a stronger management foundation and advancing the growth strategy. As announced in timely disclosures on December 27, 2024, we are working together as a group under a new management structure to integrate and restructure the core businesses of the Group, and re-examine the business portfolio from a perspective of profitability and capital effectiveness improvement.

For the fiscal year under review, crude oil prices remained weak due to sluggish demand caused by the economic slowdown in China, U.S. Policies, and anticipated production increases from OPEC+, while propane contract prices remained firm due to factors such as increased domestic demand in Southeast Asia. Crude oil prices and propane contract prices affect the purchasing prices of petroleum and LP gas related to the Company's mainstay businesses.

In the midst of this market environment, the results for this fiscal year are as follows.

Sales decreased by 317,118 million yen (a drop of 8.9% year-on-year) due to factors such as a drop in electricity sales.

In terms of profit and loss, mainly in the electricity business, the transition to market-linked plans and the review of the management system have contributed, marking a return to profit, etc. This resulted in an operating profit of 4,009 million yen (compared to an operating loss of 711 million yen in the previous fiscal year) and an ordinary profit of 4,483 million yen (compared to an ordinary profit of 93 million yen in the previous year fiscal year). Additionally, due to recorded impairment losses on non-current assets and loss on sale of shares of subsidiaries, profit attributable to owners of parent was 3,153 million yen (compared to loss attributable to owners of parent of 1,039 million yen for the previous fiscal year).

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

In terms of sales, although sales volumes in the electricity business decreased, the upward trend in propane contract prices compared to the previous year and other factors meant that unit selling prices for our mainstay area of LP gas and kerosene remained high, which increased sales.

In terms of profit and loss, although factors such as transportation costs and personnel expenses increased, profit increased mainly due to such as improvements in electricity business gross profit, which had deteriorated in the previous fiscal year.

We are continuing to improve profitability by growing sales of goods to expand our customer base and redeveloping our business foundations in Japan in anticipation of integrating our core businesses planned for April 2026, in addition to expanding the traditional energy business.

As a result of the above, net sales for the fiscal year under review in the Retail/Wholesale Energy & Related Business (B to C Business) were 75,335 million yen (up 0.4% year on year) and operating profit was 1,019 million yen (up 23.3% year on year).

[Energy Solution Business (B to B Business)]

In terms of sales, sales decreased due to factors such as the impact of a decrease in sales volume accompanying the transition to market-linked plans that emphasizes securing profits in the electricity business.

As for profit and loss, profits increased due to the impact of factors including the above-mentioned transition to market-linked plans and the review of the management system that improved the gross profit margin of the electricity business, which had deteriorated.

We will continue to seek stable profits in our petroleum and electricity businesses, and introduce systems to promote the optimization of operations and logistical efficiency, working to achieve sustainable growth. At the same time, we will focus on the deployment of energy solutions aimed at achieving a decarbonized society.

As a result of the above, net sales for the fiscal year under review in the Energy Solution Business (B to B Business) were 220,427 million yen (down 12.7% year on year) and operating profit was 2,071 million yen (operating loss for the previous fiscal year was 2,569 million yen).

[Non-energy Business]

Overall for Non-energy Businesses, though sales were up due to strong performance mainly in the bicycle sharing business and the building maintenance and management business, profits were down, affected by increased SG&A expenses, etc.

The circumstances of each business are outlined below.

Although sales of private brand products contributed, the bicycle business operator Sinanen Bike Co., Ltd. saw lower sales and profit due to such as weather-related factors including rainy weather and extreme heat.

Bicycle sharing business operator Sinanen Mobility Plus Co., Ltd. is promoting development of bicycle sharing service DAICHARI locations. As of March 31, 2025, the scale of the business has grown to more than 4,000 stations and more than 14,300 bicycles, resulting in increased sales. However, profit decreased due to the impact of factors such as the increased SG&A expenses associated with battery replacement. The Company will promote the implementation of maintenance systems and move ahead with initiatives intended to provide services aligned with the needs of local governments.

Environmental and recycling business operator Sinanen Ecowork Co., Ltd. saw lower sales and profit due to a decrease in the volume of construction waste wood generated which was associated with sluggishness in new housing starts, and an increase in product transportation costs.

Despite strong sales of products for North America, factors such as increasing raw material prices resulted in the antimicrobial business operator (Sinanen Zeomic Co., Ltd.) achieving higher sales but reduced profits.

Systems business operator Minos Co., Ltd. posted an increase in sales but a decrease in profits due to the increase in SG&A expenses, such as personnel expenses and fixed costs, despite the stable contribution from its flagship LP gas backbone operation system. The Company will continue to promote new developments such as next-generation systems while promoting sales activities focused on leading industry players.

Building maintenance and management business operator Sinanen Axia Co., Ltd. posted an increase in sales and profit due to the expansion of its area of building maintenance operations for multi-family housing, as well as strong performance of the facility operation business such as funeral halls and hospitals. The Company is promoting the development of new locations intended to achieve the "Further expansion of areas of operations" laid out in our 3rd Medium-Term Management Plan and is moving ahead with initiatives aimed at "ensuring stable profits" such as new orders for large properties.

As a result of the above, net sales for the fiscal year under review in the Non-energy Business were 21,145 million yen (up 3.2% year on year) and operating profit was 677 million yen (down 24.2% 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).