Supplementary Explanation Material for the Third Quarter of the Fiscal Year Ending March 2026

Overview of Business Performance

In the cumulative third quarter of the fiscal year ending March 2026, net sales were 15.524 billion yen, decreased by 1.265 billion yen year-over-year. Operating income recorded a loss of 754 million yen, down 1.531 billion yen year-over-year. Ordinary income also posted a loss of 777 million yen, down 2.237 billion yen year-over-year, and net income attributable to owners of the parent amounted to 2 million yen. The Energy Business saw an increase in net sales due to an expansion of the dealer network, resulting in growth in total contract capacity and electricity sales volume for high voltage; however, operating income declined due to higher selling, general and administrative expenses. The Energy Storage Solutions Business achieved higher sales and profits driven by increased unit sales and subsidy adoption. The Digital Asset Management Business suffered a substantial profit decline due to recognition of a 996 million yen impairment loss on crypto assets.

Segment Trends and Future Outlook

In the Energy Business, electricity sales volume for both high and low voltage showed steady growth, with five high-voltage plans available to meet a wide range of customer needs. The number of contracts increased year-over-year, with 2,198 for high voltage, approximately 29,400 for low-voltage corporate clients, and about 21,800 for households. The Energy Storage Solutions Business experienced growth in sales and profits due to strong sales of home-use and small industrial hybrid storage batteries. The Digital Asset Management Business continued to hold and manage crypto assets but incurred impairment losses, resulting in a recorded loss. Looking ahead, the company expects to expand sales in the Energy Business and continue growth in the Energy Storage Solutions Business while strengthening risk management in the Digital Asset Management Business.