Supplementary Explanation Materials for the Fiscal Year Ending December 2025

Performance Overview

Net sales for the fiscal year ending December 2025 amounted to 201.2 billion yen, a slight decrease of 0.5% year-over-year. However, adjusted ordinary income increased 22.9% year-over-year to 11.8 billion yen. Pre-adjusted ordinary income stood at 14.7 billion yen and pre-adjusted net income attributable to owners of parent was 10.0 billion yen, both achieving year-over-year growth. City gas sales volume slightly increased to 1,595 million m3, and electricity sales also rose. ROE improved to 8.1%, while the equity ratio slightly declined to 67.0%.

Cash Flow and Dividend Policy

In 2025, cash inflows from operating cash flow and others totaled 39.0 billion yen. Cash outflows comprised growth investments of 28.0 billion yen, resilience investments of 6.0 billion yen, shareholder returns of 4.0 billion yen, and debt repayments of 2.0 billion yen. The annual dividend was increased to 43 yen per share (from 40 yen the previous year), yielding a payout ratio of 32.2%. Going forward from 2026, the company plans to accelerate growth investments while maintaining a progressive dividend policy targeting a payout ratio of 30%.

Mid-term Plan for 2026–2028

From 2026 to 2028, net sales are projected to grow from 201.1 billion yen to 236.2 billion yen, and adjusted ordinary income is planned to increase from 11.0 billion yen to 13.6 billion yen. Pre-adjusted ordinary income is also expected to rise from 10.4 billion yen to 13.3 billion yen. ROE is forecasted to recover from 7.3% to 8.0%. The total growth investment is planned at 107.0 billion yen, continuing active investments in overseas, power generation, renewable energy, and lifestyle services sectors.