Performance trends of Resil <176A>

1. Performance Trend in Fiscal Year Ending June 2024.

For the fiscal year ending June 2024, the revenue was 38,709 million yen, operating profit was 2,793 million yen, ordinary profit was 2,769 million yen, and net income attributable to the parent company's shareholders was 1,986 million yen. Since the fiscal year ending June 2023 was a 15-month irregular accounting period, the year-on-year growth rate is not reported. However, when comparing the fiscal year ending June 2023, which was converted to a 12-month accounting period from July 2022 to June 2023, on a real basis, revenue decreased by 6.2% compared to the previous period, operating profit increased by 56.4%, ordinary profit increased by 28.9%, and net income attributable to the parent company's shareholders increased by 30.0%. Also, the fuel cost adjustment amount temporarily surged in the fiscal year ending June 2023. However, excluding these impacts, after deducting the fuel cost adjustment amount, on a real basis, revenue increased by 16.5% to 39,085 million yen, operating profit increased by 56.4% to 2,793 million yen, ordinary profit increased by 28.9% to 2,769 million yen, and net income attributable to the parent company's shareholders increased by 30.0% to 1,986 million yen. With a double-digit increase in revenue, it can be said that the performance for the fiscal year ending June 2024 has been favorable.

Regarding the performance forecast disclosed when listing on the Tokyo Stock Exchange Growth Market, the actual results exceeded the forecast with revenue at 882 million yen, operating profit at 155 million yen, ordinary profit at 200 million yen, and net income attributable to the parent company's shareholders at 178 million yen, showing favorable performance compared to the forecast.

Overall, revenue grew steadily, particularly in the green energy business. On the profit side, careful procurement was carried out by adjusting market trading volumes flexibly, resulting in a substantial improvement in the gross profit margin after deducting the fuel cost adjustment amount on a real basis, which increased by 38.7% compared to the previous period, reaching 7,485 million yen. Selling and administrative expenses increased to 4,691 million yen on a real basis after deducting the fuel cost adjustment amount, reflecting improvements in sales revenue growth surpassing the increase in total revenue. Despite the increase in gross profit, it covered the growth in operating profit significantly.

Green energy business drives profit growth

2. Performance trends by segment.

Segment performance: Decentralized energy business had revenue of 20,329 million yen, segment profit of 2,595 million yen; Green energy business had revenue of 21,196 million yen, segment profit of 1,950 million yen; Energy DX business had revenue of 1,911 million yen, segment profit of 340 million yen.

When comparing the revenue of each segment in real terms converted to a 12-month fiscal year from July 2022 to June 2024 with the fiscal year ending in June 2023, the decentralized energy business decreased by 14.6% compared to the previous period, the green energy business decreased by 0.5%, and the energy DX business increased by 37.6%. Segment profit (operating profit) is not disclosed, so when viewed in terms of EBITDA (operating profit + depreciation), the decentralized energy business increased by 3.0% to 3396 million yen, the green energy business increased by 289.7% to 2003 million yen, and the energy DX business increased by 196.9% to 389 million yen. It seems that a large portion of the depreciation is allocated to the decentralized energy business.

In the decentralized energy business, new condominium disaster prevention services were introduced as a new product from the beginning of the period, and efforts to acquire new customers were intensified. However, due to a certain lead time from proposal to implementation, it is expected that the revenue will start to grow significantly after the fiscal year ending in June 2025, and for the fiscal year ending in June 2024, with 3 buildings and 441 units, the contribution was small. Therefore, the acquisition of new customers mainly focused on condominium bulk receiving services, with the number of units introduced totaling 2,245 buildings and 178,502 units (an increase of 1.5% compared to the previous period). For existing customers, although a temporary decline in demand was observed due to a mild winter, the significant contribution of the increase in sales electricity due to the hot summer in the first quarter and the overall performance remained generally robust throughout the year.

In the green energy business, against the background of organizational structural reforms, efforts were made to enhance sales activities focusing on market price-linked tariff plans and to gain customer understanding and cooperation for expanding renewable energy utilization towards the goal of 100% renewable energy ratio by 2030. As a result, due to the growth in sales electricity during the hot summer in the first quarter, smooth progress in the number of contracts for market price-linked tariff plans, and the replacement of unprofitable transactions with good profitability deals through the practice of organizational structural reforms, profitability improved significantly, leading to a significant increase in segment EBITDA and an upward revision of full-year performance. The number of contracts decreased by 2.0% to 7,511 units at the end of the previous period, and the renewable energy ratio in the supply contracts reached 82.5%.

In the energy DX business, in addition to continuing to receive work from existing customers who are energy companies in the same industry, they also began to receive operations such as regional new electricity company operations involving participation from local governments. The number of end users from customers, who are energy companies, decreased by 4.3% to 425,000 at the end of the previous period, but this decrease was offset by an increase in customer unit price, leading to a significant increase in EBITDA.

(Author: FISCO guest analyst Nobumitsu Miyata)