FY 2023

Briefing Materials

Securities Code: 8132

(Prime, Tokyo Stock Exchange)

May 21, 2024

Promoting business reforms for business recovery with a new management

system, and expecting a return to profitability.

FY 2023

Financial

results overview

FY 2024

Financial

forecast

Future policy

  • Operating loss due to significant loss from negative spread in the electricity business
  • Review the implementation system of the electricity business and significantly improve revenue to return to profitability.
  • Clarify management responsibility and also renew the management system for business recovery.
  • Promote business structure reforms for business recovery centering on the redevelopment of business foundations in Japan and the strengthening of retail service strategies.
  • New business initiatives to achieve a carbon-free society

© 2024 Sinanen Holdings Co., ltd.

1

Overview of FY 2023 Financial Results

© 2024 Sinanen Holdings Co., ltd.

2

Summary of Financial Results

FY 2022

FY 2023

YoY

(Unit: Hundred millions of yen)

Results

Results

(Amount)

(Percentage)

Net sales

3,422.5

3,482.8

+60.2

+1.8%

Gross profit

333.3

323.8

(9.5)

(2.9%)

SG&A

324.4

330.9

+6.5

+2.0%

Operating profit

8.9

(7.1)

(16.0)

-

(loss)

Non-operating

7.6

10.5

+2.8

+37.6%

income

Non-operating

4.3

2.5

(1.8)

(42.2%)

expenses

Ordinary profit

12.2

0.9

(11.3)

(92.4%)

Extraordinary

33.2

2.2

(30.9)

(93.2%)

income

Extraordinary losses

27.6

3.8

(23.7)

(85.9%)

Profit (loss) before

17.8

(0.7)

(18.6)

-

tax

Profit (loss)

4.7

(10.3)

(15.1)

-

attributable to owners of

parent

Increase in sales volume of petroleum products and electricity

Deterioration in the electricity business:

Factors include surplus of power supplies procured from relative energy sources and sales at a negative spread affected by the low- priced wholesale electricity market.

Proceeds from dividend income and insurance claim income

Affected by factors such as loss on disaster because of solar power generation facilities and other equipment damaged by the 2024 Noto earthquake.

© 2024 Sinanen Holdings Co., ltd.

3

Over view by Segment

FY 2022

FY 2023

YoY

(Unit: Hundred millions of yen)

Results

Results

(Amount)

(Percentage)

B to C Business

(Retail/Wholesale

814.1

750.2

(63.9)

(7.9%)

Energy & Related

Business)

B to B Business

2,412.5

2,525.4

+112.9

+4.7%

(Energy Solution

Business)

Non-energy Business

193.5

204.8

+11.3

+5.9%

Other/adjustment

2.2

2.2

+0.0

+0.2%

Total

3,422.5

3,482.8

+60.2

+1.8

Impacted by a decrease in sales volume of LP gas and kerosene, etc.

Affected by factors such as the acquisition of large corporate customers for market-linked plans in the electricity business and the increase in sales volume of light oil and heavy oil.

Strong performance by the bicycle business, the bicycle sharing business, and the building management and maintenance business

© 2024 Sinanen Holdings Co., ltd.

4

Operating Loss Variance Analysis

For the B to B business, there was a significant decrease in profit greatly affected by deterioration in the electricity business.

(1,600) million yen

+670 million yen

(2,220) million yen

890 million yen

Gas gross

+300 million

profit

yen

Electricity

+500 million

gross profit

yen

Increase in

(100)

+30 million yen

SG&A

million yen

(90) million yen

(710) million yen

Electricity

(1,300)

gross profit

million yen

Petroleum

(800)

gross profit

million yen

FY 2022

B to C Business

B to B Business

Non-energy

Other/adjustment

FY 2023

(Melife)

(Sinanen)

Business

© 2024 Sinanen Holdings Co., ltd.

5

SG&A: Variance Analysis

SG&A remains on par with the previous year's level.

32,440 million yen 33,090 million yen

670 million yen

4,310 million yen

4,950 million yen

9,150 million yen

13,330 million yen

710 million yen

4,110 million yen

5,300 million yen

9,150 million yen

13,810 million yen

Other

+30 million yen

Fixed expenses (200) million yen

Sales-related expenses +350 million yen

Variable sales expenses (0.0) million yen

Personnel expenses, etc. +480 million yen

Decrease in taxes and dues, and current amortization of consolidation adjustment account, etc.

Increase in commission expenses relating to IT and the bicycle sharing business

Increase in number of personnel

FY 2022

FY 2023

© 2024 Sinanen Holdings Co., ltd.

6

Consolidated Balance Sheet: Variance Analysis

Maintaining balance sheet with equity ratio of about 50%.

FY 2022

Total assets 101,300 million yen

(Unit: Hundred millions of yen)

Interest-bearing

54

Cash and deposits 102

liabilities

Other liabilities

Other current assets

422

485

Net assets

Property, plant

536

and equipment

283

Intangible assets 26

Equity ratio

52.9%

Investments and other assets

116

FY 2023

Total assets 108,400 million yen

(Unit: Hundred millions of yen)

Interest-bearing

Cash and deposits 118

liabilities

107

Other liabilities

Other current assets

443

535

Net assets

Property, plant

533

and equipment

282

Intangible assets 23

Equity ratio

49.1%

Investments and other assets

125

Main factors of variance

Debit

Increase in trade receivables due to seasonal factors

(+3,100 million yen)

Increase in investment securities due to revaluation, etc.

(+1,400 million yen)

Credit

Increase in notes and accounts payable and short-term borrowings due to seasonal factors

(+7,300 million yen)

© 2024 Sinanen Holdings Co., ltd.

7

Consolidated Cash Flow s: Breakdow n

Negative operating cash flow due to reduction in pre-tax profit

FY 2022

FY 2023

YoY

(Unit: Hundred millions of yen)

Results

Results

(Amount)

(Percentage)

Cash flow from

3.8

(9.4)

(13.3)

-

operating activities

Cash flow from

(6.9)

(16.6)

(9.6)

+138.6%

investing activities

Cash flow from

4.3

42.7

+38.3

+881.7%

financing activities

Net increase (decrease)

(0.2)

16.5

+16.7

-

in cash and cash

equivalents

Cash and cash

99.4

99.2

(0.2)

(0.2%)

equivalents at beginning

of period

Cash and cash

99.2

115.8

+16.5

+16.7%

equivalents at end of

period

Profit before income taxes: (1,800) million yen

Impairment losses: (2,300) million yen Loss (gain) on sale of non-current assets: +2,300 million yen

Increase in trade receivables: (5,700) million yen

Increase in trade payables: +6,700 million yen

Proceeds from sale and redemption of investment securities: 1,000 million yen Proceeds from sale of non-current assets: (2,300) million yen Payments for purchase of non-current assets: +1,600 million yen

Proceeds from maturity of insurance funds: +900 million yen

Increase in short-term borrowings: +3,600 million yen

© 2024 Sinanen Holdings Co., ltd.

8

Based on the FY 2023 Financial Results

© 2024 Sinanen Holdings Co., ltd.

9

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SINANEN Holdings Co. Ltd. published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2024 07:16:05 UTC.