IFRS Consolidated Financial Summary for the Third Quarter of the Fiscal Year Ending March 2026

Performance Overview

In the cumulative third quarter period of the fiscal year ending March 2026, revenue reached JPY 64,016 million (31.6% year-over-year increase), and operating income significantly rose to JPY 7,759 million (206.8% year-over-year increase). Net income attributable to owners of parent recovered to JPY 3,643 million, turning profitable from a loss in the previous year same period. These increases were mainly driven by increased electricity sales revenue at the Tokushima Tsuda Biomass Power Plant, and the commencement of operations and consolidation of the LLC Omaezaki Port Biomass Energy and LLC Karatsu Biomass Energy. EBITDA also increased to JPY 24,197 million (45.6% year-over-year increase), with EBITDA margin improving to 37.8%.

Financial Position and Outlook

Total assets increased by JPY 69,007 million to JPY 599,058 million compared to the previous fiscal year-end, and total equity also rose to JPY 172,633 million. The equity ratio attributable to owners of parent improved to 18.7%, enhancing financial soundness. The net interest-bearing debt to EBITDA ratio improved to 8.4x, reflecting a reduction in financial burden. The full-year earnings guidance forecasts revenue of JPY 90,500 million (28.8% year-over-year increase) and operating income of JPY 9,300 million (128.7% year-over-year increase), indicating growth in both revenue and earnings. However, net income attributable to owners of parent is expected to decline to JPY 1,500 million (44.2% year-over-year decrease). This reflects the anticipated revenue decline due to suspension of operations at the Omaezaki Port Biomass Power Plant, while expecting earnings improvement from reduced maintenance costs and lower fuel prices.