During the fiscal year under review, the Japanese economy continued to face a high degree of uncertainty caused by international conditions. In the energy sector, heightened geopolitical risks, centered on the Middle East, made crude oil and natural gas prices volatile, leaving the outlook for the energy procurement environment uncertain. In addition, fluctuations in foreign exchange rates and increases in various costs continued to require close attention in the business environment.

Crude oil prices and propane CP, which affect purchase prices for petroleum products and LP gas related to the Group's core businesses, have recently been on an upward trend due to factors such as the situation in the Middle East, but were soft over the full year.

Under these market conditions, in the fiscal year under review, with a view to the 100th anniversary of its founding in April 2027, the Company, under the Third Medium-Term Management Plan, moved forward with preparations to integrate the four core companies in the energy business in order to strengthen its domestic businesses and pursue its growth strategy. In addition, to strengthen its retail service strategy, the Company developed human resources to improve service quality and worked to systematically organize its service offerings. In addition, the Company sold all shares of Sinanen Ecowork Co., Ltd. (currently KPP ECOWORKS Co., Ltd.) as part of its efforts to transform its business portfolio.

As a result, net sales were 298,752 million yen (down 5.8% year on year), operating profit was 4,403 million yen (up 9.8% year on year), ordinary profit was 5,382 million yen (up 20.1% year on year), and profit attributable to owners of parent was 4,435 million yen (up 40.6% year on year), achieving record-high profit.

[Retail/Wholesale Energy & Related Business (B to C Business)]

In terms of sales, sales declined due to lower sales volumes in kerosene and gas sales resulting from warm weather, as well as the impact of propane CP prices trending lower year on year.

In terms of profit and loss, profit increased due to cost reductions resulting from withdrawal from unprofitable businesses implemented in the previous fiscal year.

As a result, net sales in the Retail/Wholesale Energy & Related Business (BtoC Business) for the fiscal year under review were 71,227 million yen (down 5.5% year on year), and operating profit was 1,337 million yen (up 31.2% year on year).

[Energy Solution Business (B to B Business)]

In terms of sales, sales volume of diesel fuel remained firm, but sales declined due mainly to the impact of lower sales volumes for other oil products resulting from warm weather.

In terms of profit and loss, profit decreased mainly due to a narrowing of margins in negotiated electricity sales transactions.

As a result, net sales in the Energy Solution Business (BtoB Business) for the fiscal year under review were 204,476 million yen (down 7.2% year on year), and operating profit was 1,566 million yen (down 24.4% year on year).

[Non-energy Business]

The business achieved higher sales and profit mainly due to the strong performance of the comprehensive building maintenance business and bicycle sharing business.

The comprehensive building maintenance business (Sinanen Axia Co., Ltd.) posted higher net sales and profit as the expansion of areas for apartment building maintenance services and facility operation services for funeral halls, hospitals, and other facilities progressed steadily.

Bicycle sharing business operator Sinanen Mobility Plus Co., Ltd. steadily expanded its market share by promoting development of locations for the bicycle sharing service DAICHARI. In addition, sales and profit increased due to steady growth in the number of uses and the effects of price revisions.

As a result, net sales in the Non-energy Business for the fiscal year under review were 22,839 million yen (up 8.0% year on year), and operating profit was 1,062 million yen (up 56.7% year on year).