President's Message
We will realize continuous growth by carefully meeting the needs of our customers, improving our services, and contributing to local communities and society
Our group has been providing a wide range of services related to people’s lives and social infrastructure since its establishment in 1950. The background to the expansion of these services is a corporate culture that seeks to respond to all of our customers’ needs and to increase their joy and satisfaction. We will continue to pursue more secure, safe, and fulfilling services while being close to our customers and the community.
Performance for the Fiscal Year ending March 2024
Record-breaking highest sales for the 7th consecutive year
Steady strengthening and expansion of customer base
Regarding the performance for this fiscal year, the increase in the number of customers in our main businesses such as energy and CATV, as well as the expansion of stock business for corporate customers in the information and communication business, made significant contributions. As a result, our sales reached 231.5 billion yen (an increase of 0.6% compared to the previous year), setting a new record for the 7th consecutive year of sales growth.
In terms of profitability, although there was a decrease in sales volume of household gas due to high temperatures and an increase in personnel expenses due to wage revisions, the increase in profits due to the increase in the number of customers greatly contributed. As a result, our operating profit reached 15.5 billion yen (an increase of 4.0% compared to the previous year). Additionally, the burden of impairment loss on goodwill recorded in the previous year was reduced, resulting in an improvement in ordinary profit and net profit attributable to the parent company's shareholders, achieving a significant increase in profits. The year-end dividend for this fiscal year was increased by 1 yen per share from the initial forecast to 17 yen, and the annual dividend was set at 33 yen.
Regarding the customer base, which is the source of our group's revenue, we increased it by 59 thousand from the end of the previous year to 3,358 thousand by actively acquiring new customers as part of our medium-term management plan. In addition to steadily acquiring gas and CATV customers, we also achieved net increases in optical collaboration and LIBMO, contributing to the expansion of our customer base.
Outlook for the Full Year
Planning to achieve record-high sales and all profit items
The fiscal year 2024 is the second year of our "Medium-Term Management Plan 2025". We will diligently execute the initiatives set forth in the medium-term management plan and strive for further growth. In particular, we will enhance our sales capabilities, which are our group's strengths, to increase the number of customers and orders, and expand our customer base even further. We will also promote area expansion, M&A, and the creation of new businesses.
As for our performance, we plan to achieve sales of 244 billion yen, operating profit of 16 billion yen, ordinary profit of 16 billion yen, and net profit attributable to the parent company's shareholders of 9 billion yen. These target figures aim to continue increasing sales and profits, setting new record highs for all items. In terms of the number of customers, we plan to achieve a net increase of 94 thousand from the end of this fiscal year, reaching 3,452 thousand.
Towards Achieving Management Focused on Capital Cost and Stock Price
Striving for further improvement in profitability and growth to meet the expectations of our shareholders
Our group is committed to management focused on capital cost and stock price. The PBR (Price-to-Book Ratio) for this fiscal year is 1.4 times, ROE (Return on Equity) is 10%, and PER (Price-to-Earnings Ratio) is 15.2 times. The positioning of ROE and PER is relatively high within the gas industry.
In order to further improve profitability and growth, we will promote three initiatives to enhance corporate value: "Initiatives for Business Portfolio Management," "Expansion and Efficiency Improvement of Each Business," and "Initiatives for ESG Management."
Regarding "Initiatives for Business Portfolio Management," we will strengthen management to achieve optimal portfolio construction for the entire group by categorizing our group's businesses into "growth areas" with high capital profitability and growth, "expectation areas" with high growth but capital profitability below a certain level, "mature areas" with high capital profitability but growth below a certain level, and "reform areas" with low capital profitability and growth, and determining appropriate directions for each.
Regarding "Expansion and Efficiency Improvement of Each Business," we will promote expansion and efficiency improvement measures for each business based on their positioning in the business portfolio, particularly in the "growth areas" and "expectation areas."
Regarding "Initiatives for ESG Management," we will work towards achieving initiatives related to the environment, such as achieving carbon neutrality by 2050, initiatives related to society, such as maximizing the vitality of human resources and organizations and improving employee well-being, and initiatives related to governance, such as thorough compliance and governance.
Under our medium-term management plan and new corporate message and slogan, our group will work together as one to aim for the improvement of corporate value and sustainable growth. We sincerely ask for your continued support as our shareholders.
President and CEO
May 2024