Business and Financial Highlights

(Adopted Japanese GAAP)

MS Excel file FYE Mar. 2012 - FYE Mar. 2023[Open Excel file13KB]

Overview of Operating Results (FYE Mar. 2023)

For the consolidated fiscal year under review, the Japanese economy continued to face concern over high prices due to the ongoing depreciation of the yen and soaring raw material and energy prices caused by the situation in Ukraine. However, in the world with COVID-19, the economy is expected to pick up as a result of various government policies and expanding moves by companies to raise wages and support diversification of work styles.
During the fiscal year ended March 31, 2023, the Group continued its concerted efforts to accelerate the expansion of business areas and digital marketing, to create open innovation, to step up its digital transformation (DX) strategy, to optimally allocate management resources, and to strengthen its SDG initiatives.
Consequently, the Group posted a 106,000 rise in the number of continuing customers, to 3,299,000 for the fiscal year ended March 31, 2023 (whereas the number grew 95,000 in the same period a year earlier). The number of TLC Membership Service members increased 71,000 to 1,158,000 (whereas it rose 107,000 for the same period a year earlier).
In June, 2022, the Group acquired shares of Wood Recycle Co., Ltd. (Gero City, Gifu Prefecture), a company engaging in industrial waste treatment and manufacturing of woodchips, and made it a consolidated subsidiary. In October, the Group acquired shares of J-support Co., Ltd. (Chuo-ku, Fukuoka City), which engages in the development, sales, and maintenance of packaged software for the logistics and warehousing industry, and Okinawa Cable Network Inc. (Naha City, Okinawa Prefecture), which operates a CATV business, and made them consolidated subsidiaries. In March 2023, TOKAI Kids Touch Corporation (Aoi-ku, Shizuoka City), a consolidated subsidiary, launched a temporary daycare center service.
In addition, the Group made positive achievements in expansion of its business base by establishing a new LP gas sales base in Matsuyama City, Ehime Prefecture in March 2023 to expand into the Shikoku area.

Under these circumstances, for the fiscal year ended March 31, 2023, the Group posted net sales of 230,190 million yen (up 9.3% year on year). However, given rises in gas purchase costs and in expenses for gaining customers, operating profit was down 5.5% year on year to 14,919 million yen. Ordinary profit stood at 13,289 million yen, down 16.5% year on year, after posting investment losses including impairment losses associated with the goodwill of an affiliate in Vietnam. Profit attributable to owners of parent was 6,465 million yen, down 27.9% year on year.

Future Outlook

In FY2023, the Group will continue to actively promote customer acquisition with the aim of increasing net sales and each profit item, while factoring in the impact of increased personnel expenses due to wage hikes.

The consolidated earnings forecast for FY2023 is as follows.

Consolidated earnings forecast for the fiscal year ending March 31, 2024

Sales240,000million yen(+4.3% YoY)
Operating profit15,000million yen(+0.5% YoY)
Recurring profit15,000million yen(+0.5% YoY)
Net Income attributable
to owners of the parent
8,500million yen(+31.5% YoY)

These earnings forecasts are based on the information currently available to the Company. Actual results may differ from forecasts due to a variety of factors.

Operating Results

Financial Position

Cash Flows

Financial Index

MS Excel file FYE Mar. 2023 - FYE Mar. 2024[Open Excel file14KB]

Explanation of consolidated operating results for the third quarter of the fiscal year ending March 31, 2024

 During the first nine months of the fiscal year under review, the economy experienced a mild recovery aided by various government packages, including measures to ease the situation for consumers. However, the business circumstances surrounding the Group were marked by persistently high material purchase prices in the energy segment. There are issues with worsening labor shortages and the response to soaring prices.

 In this environment, the Group developed Medium-Term Management Plan 2025 and announced it in May 2023. Aimed at achieving sustained growth, this plan has set out three key themes. The first is growth of earning power, the second is strengthening of the foundations for sustainable growth, and the third is the full energization of human capital and organizations.

 For the first nine months of the fiscal year under review, the Group saw the number of continuing customers rise by 41,000, to 3,341,000, compared with growth of 64,000 in the same period of the previous fiscal year. The number of TLC members rose 43,000 to 1,201,000. For the same period a year earlier, the figure surged 53,000. Thanks to the increase in the number of the Group's customers, net sales reached 164,676 million yen, up 0.3% year on year, and operating profit 8,797 million yen, up 3.9% year on year. Ordinary profit stood at 8,968 million yen, up 33.8% year on year, and profit attributable to owners of parent at 4,934 million yen, up 75.2% year on year. Increases resulted mainly from a decrease in the burden arising from the share of profit of entities accounted for using equity method.

 Notable events during the first nine months of the fiscal year under review include an investment made in July 2023 in the group led by Pure Energy Holdings Corporation, which operates a business of generating power from renewable energy sources in the Republic of the Philippines, as part of the initiatives to achieve carbon neutrality. Another event is the new opening of a sales office for LP gas sales in the city of Ise in Mie Prefecture in August 2023. The office is making steady progress in expanding the business base. In October 2023, a Group company became the 14th company in Japan to acquire the highest AWS Premier Tier Services Partner certification under the Amazon Web Services (AWS*) Partner Network, which acts as AWS' partner certification program. In December 2023, the Group invested in Albatross Technology Inc., which engages in offshore wind power development. The Group will continue its initiatives for carbon reduction and decarbonization.

 * Amazon Web Services (AWS): A cloud service provided by Amazon Web Services, Inc. in the United States.

Operating Results

Financial Position

Cash Flows

Financial Index