■Keiyo Gas ＜9539＞ Medium-Term Management Plan

5. Progress of the medium-term management plan

Two years have passed since the “Long-term Management Vision 2030” and the “Mid-Term Management Plan 2024” were formulated, but in addition to normalization of abnormal weather, the situation is very different from when the plan was formulated, such as the prolonged effects of the spread of the novel coronavirus infection (hereinafter, COVID-19), high raw fuel prices, material prices, depreciation of yen, etc. due to the situation in Ukraine. As a result, severe conditions continue in terms of performance, such as the cumulative ordinary profit targeted by the “Mid-Term Management Plan 2024,” which is expected to fall below the initial plan of 18 billion yen, but it is now expected that the priority strategies of the “Mid-Term Management Plan 2024” can generally be achieved. However, while interest in carbon neutrality has increased even more compared to when the “Mid-Term Management Plan 2024” was formulated, it seems that the impact of labor shortages has slightly extended to partner companies in DX promotion. Also, due to the circumstances of the 2024/1 Noto Peninsula earthquake, the continued strengthening of resilience has come to a close spotlight. Despite these new challenges, it can be said that the regional energy sector is going well. Meanwhile, I would like to shift from a one-legged approach to diversification in the energy business at an early stage, but new developments can be expected in the area management area due to Reef City Ichikawa, but it seems that the total life support area has not reached a point where it will grow significantly.

(Written by FISCO Visiting Analyst Miyata Hitomitsu)