Quick Answer

Quick Answer

Quick Answer

Quick Answer

The person in charge of IR answers questions received during daily IR operations.

Q2 FY2025

Q1

Regarding sales by segment, what specifically does industrial gas refer to in the B to B Business and what factors caused the decrease in spot transactions? It was also stated that three businesses in the Non-energy Business contributed to an increase in sales. Which business contributed the most?

For the first question, industrial gas mostly refers to butane gas. The decrease in B to B Business sales was affected by the decrease in spot transactions of items such as storage batteries in addition to industrial gas.

For the second question, both net sales and operating profit were positive for the Non-energy Business. The three companies Minos (systems business), Sinanen Axia (comprehensive building maintenance business), and Sinanen Mobility Plus (bicycle sharing business) contributed the most. It is significant that we were able to achieve profitability in the first half of the year following on from the previous fiscal year, and we hope to maintain this trend.

Q2

What is the investment situation and performance for this fiscal year?

Although we will refrain from disclosing details such as the investment amount, we have made progress with multiple projects for market area acquisition and such in the first half of the year. In the second half of the year, we expect a steady increase in investment because we currently have multiple ongoing projects. In terms of how cash will be used, we will take a flexible approach and review other options while prioritizing growth investment.

Q3

Where can I find the current updated points for the retail service strategy policy? Also, does the policy to consolidate services in each Group company after the integration include a plan to provide a one-stop solution by consolidating offices and areas, including Sinanen Mobility Plus and Sinanen Bike?

For the first question, this time we presented four priorities with the aim of evolving into a corporate entity that provides various group services to entire communities where our regional offices are based. We have summarized the overall design of this strategy to include such matters as specific mechanisms, products, and approach methods while considering how we can be of assistance in each region. Looking ahead, we will keep you informed at each stage about the quantitative aspects such as the revenue scale and time axis of each initiative.

For the second question, within the Group, Melife companies and Sinanen will integrate in spring 2026. However, we believe it is essential to maintain close cooperation and connections between the energy business, the comprehensive building maintenance business led by Sinanen Axia, and the mobility businesses from such as Sinanen Mobility Plus and Sinanen Bike as we strengthen the provision of our one-stop services in the region.

Q4

Can you provide any more specific details about what has been finalized at this point concerning the progress of integrating the four core companies?

With Sinanen Holdings playing a central role, we have formed a task force jointly with the operating companies to be integrated and then proceeded with specific preparations. In April 2026, to ensure that all of our offices can respond to customer needs in a rapid and flexible manner, the Group is working together as a team to embody the idea of "being attentive, considerate, and caring" which is at the heart of our services. We will report on the progress as necessary.

Q5

What is your approach to cancellation of treasury shares?

We have implemented company-wide ROA improvement measures since the previous fiscal year. We have been reviewing the details in the Group's balance sheet and this is one of approaches we are taking in this matter. We will continue with our goal of improving and increasing asset efficiency and proceed with reviewing the entire balance sheet.

Q6

Do you plan to increase IR disclosure, such as revealing the progress made for the targets set in the Medium-Term Management Plan for next year?

We intend to disclose any necessary information in an efficient and timely manner as we have always done. In addition to the status of progress for the targets set in the Medium-Term Management Plan, we will also disclose more details about initiatives from the new Sinanen. We are also adding cash flow allocation disclosure from this fiscal year so please refer to this as a growth investment trend.

Q1 FY2025

Q1

Please tell us about the key points of the financial results for the three months ended June 30, 2025.

Profit increased YoY, mainly due to an increase in sales volume of kerosene in the petroleum business, influenced by cold weather in April and May.

All business segments recorded increased profits YoY.

Q2

Please tell us about the full-year financial results forecasts.

Results in the three months ended June 30, 2025 progressed smoothly as initially forecasted, supported by strong performance in the petroleum business.

At this point, full-year financial results are also expected to be in line with the plan.

Q3

Were there any new initiatives that started in the three months ended June 30, 2025?

The Group fully launched measures to improve ROA (return on assets). In an aim to achieve ROE of 8% set in the 3rd Medium-Term Management Plan, each Group company will review its assets and strive to achieve the sustainable improvement of ROA.