ENECHANGE Ltd.

Business Details

From the current consolidated fiscal year, the previously separate three segments—"Energy Platform Business," "Energy Data Business," and "EV Charging Business"—have been consolidated into a single segment, "Energy Distribution Platform Business." The Company provides an electricity switching comparison platform for households and businesses, as well as SaaS / System Development for electricity and gas utilities, and offers solutions that contribute to reducing energy costs and environmental costs in Japan as a platformer supporting energy distribution.

Recent Overview

Achieved segment reorganization and a return to profitability; began development of a core system for new power producers and suppliers

From FY2026 (ending March 2026), the Company divested the EV Charging Business (sold to a joint venture with Chubu Electric Power Miraiz) and reorganized into a single segment, "Energy Distribution Platform Business." Net sales reached ¥6,697 million and operating profit ¥592 million, achieving an operating profit turnaround. On the other hand, a share of loss of entities accounted for using the equity method of ¥728 million was the main cause of an ordinary loss of ¥148 million. The number of continuing household users declined slightly, while the number of continuing corporate sites increased. Based on the medium-term management plan (FY2026 through FY2028), the Company began development of a "core system for new power producers and suppliers" and plans to begin providing the service to its first customer during FY2027 (ending March 2027). The damages lawsuit filed by Terra Charge Inc. (¥510,000 thousand claimed) was concluded in February 2026 with a final ruling fully dismissing the claim.

Key Products

Growth Drivers

• Growing demand for switching comparison platforms driven by increased interest in reviewing electricity rate plans (approximately 60% of consumers had still not switched providers as of the 10th anniversary of full retail electricity liberalization)
• Expansion of the corporate business through growth in the number of continuing corporate sites and responsiveness to demand for diverse pricing formulas
• Diversification of household user acquisition through enhanced AI search optimization (AIO) and development of new customer acquisition channels
• Building a new pillar of recurring revenue by establishing a licensing model for the "core system for new power producers and suppliers" (planned to be provided to its first customer during FY2027, ending March 2027)
• Business expansion into upstream areas such as power procurement support and environmental value (e.g., non-fossil certificates) procurement support
• Increased ARPU through upselling and cross-selling to existing SaaS customers
• Increased electricity demand driven by data center expansion amid the spread of generative AI (per the 7th Strategic Energy Plan)

Risks

• Continued investment losses at equity-method affiliates (such as MIRAiZ ENECHANGE), with a loss of ¥728 million recorded in the current period, the main cause of the ordinary loss
• A slight declining trend in the number of continuing household users, requiring a review of the user acquisition strategy
• Risk that energy price volatility driven by geopolitical risks such as tensions in the Middle East and foreign exchange trends could worsen electric utilities' finances and shrink switching demand
• Risk of delayed development or failure to acquire customers for the "core system for new power producers and suppliers," given that the number of SaaS customers has remained flat at 42 companies
• Risk of non-collection of receivables related to the trust-type stock option taxation issue (current: ¥25 million; long-term: ¥91 million), for which an allowance for doubtful accounts has already been recorded
• Although the lawsuit filed by a former employee was settled and concluded as of December 25, 2025, additional legal risks related to the trust-type stock option taxation issue may remain
• Impact of the decline in contracted development revenue within SaaS / System Development (already factored into the FY2027, ending March 2027, earnings forecast)
• Risk of declining customer acquisition via search engines due to the spread of AI search, and increased costs of addressing new customer acquisition channels