The Maintenance Business has been growing as a business that can serve as a foothold for securing broader regional presence going forward, but improving its profitability remains a challenge. Because the business has a strong labor-intensive component, it is difficult to immediately pass on cost increases, such as rises in the minimum wage, to selling prices or contract prices, which tends to create a time lag in reflecting costs. Taking these factors into account, we will continue to advance price shifts and respond with appropriate pricing relative to appropriate costs. Moreover, we believe that further strengthening cost management is important for the stable operation of the business, and we will work on improvements in this area as well. In addition, in areas such as our cleaning business, we are also making equipment proposals to the same customers, and we are considering expanding our proposals to include energy in the future. We believe that accumulating such high-value-added proposals will contribute to improving profitability.

Ordinary profit of 5.38 billion yen in the fiscal year ended March 31, 2026 marked the highest profit since the transition to the holding company structure and represented the second consecutive year of profit growth. We recognize that the foundation for improving performance has been largely established over these two years. We reviewed our business portfolio, integrated our four core companies, made improvements to our cost structure, and positioned energy, maintenance, and mobility as our three core businesses going forward.

We believe that the key over the next two years will be how much we can strengthen our earning power. For example, while the Group has approximately 80 locations nationwide, if each location can generate 30 million yen in operating profit, that would amount to approximately 2.4 billion yen in total. At the field level, the Group has approximately 100 sales staff across Japan, and by promoting various cross-selling activities in each region, if we accumulate 50,000 yen in recurring revenue per month and continue this for two years, we would have built up recurring revenue that generates approximately 1.5 billion yen per year.

While the growth from 6.6 billion yen to 10 billion yen may appear to be a significant jump based on past performance trends, we believe it is not an unrealistic target if we strengthen our organizational structure and advance both mindset changes and behavioral changes among each and every employee.

We believe the Group's strength lies in the trust it has earned and the sense of social responsibility it has cultivated through maintaining a long-standing local presence and operating infrastructure businesses that remain firmly committed to the communities they serve. We will leverage this strength to the fullest, rather than limiting it to the sale of individual products such as gas or petroleum.

Specific examples of lead-generation services include addressing everyday issues such as water leaks, light bulb replacements, and screen door repairs. While the specific content of lead-generation services may vary by region, there are many such small everyday issues. In fact, our current Maintenance Business already conducts such initiatives, and going forward we will further enhance lead-generation services in each region while also strengthening collaboration with the Energy Business. Rather than starting with proposals for energy products, we believe it is important to first build trust through these types of services.

As part of these efforts, the Group is promoting the acquisition of housekeeping cleaning technician qualifications, which are nationally certified by the Ministry of Health, Labour and Welfare, and approximately 60 of our gas retail sales staff have already acquired the qualification. We will provide services not only to existing energy customers, but also to customers throughout the entire region in order to earn their trust. We believe that this trust will lead to new proposals and, further, to projects such as renovations. For this reason, we recognize that the focus over the next two years will be on people development, system development, and the creation of added value.

We will continue to review the approach to our business portfolio. In the fiscal year ended March 31, 2026, we carried out the sale of Sinanen Ecowork and reorganized our core businesses into three areas of energy, maintenance, and mobility. Going forward, we will make decisions based on considerations such as whether there are synergies with our core businesses and whether we can continue to be the optimal owner as a holding company.

Regarding business acquisitions, while we are willing to actively consider opportunities that contribute to synergies with the Energy Business, Maintenance Business, and Mobility Business, we recognize the need to carefully assess such opportunities. Rather than pursuing expansion in scale alone, we will first clearly define our management structure, establish strict criteria, and make careful judgments with emphasis on whether sufficient synergies can be expected. Among these, we are particularly willing to consider opportunities more actively in areas related to the Maintenance Business.

Regarding whether any significant impact has materialized immediately at present, while some effects stemming from naphtha have been observed, no major impact has emerged for the Group as a whole at this point. That being said, we recognize the need to continue closely monitoring future developments and will work to further strengthen collaboration with our suppliers. In addition, in response to rising energy prices, we will advance price shifts at appropriate times while taking measures to minimize the decline in margins.

While energy business stagnated amid weak profitability in the electricity business, strong performance in non-energy businesses driven by the bicycle sharing business and comprehensive building maintenance businesses lifted profit year on year.

We are making steady progress consistent with our initial outlook, and at this point the full-year results are also expected to be in line with the plan.

As part of our selection-and-concentration efforts based on a review of our business portfolio under the Third Medium-Term Management Plan, we decided to sell the subsidiaries to owners under whom they would have greater potential for growth. We will promptly announce any matters requiring disclosure that may arise with regard to these cases going forward.

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.

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.

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.

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.

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.

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.

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.

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.

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.