OSG CORPORATION CO.,LTD.

The company possesses an on-site maintenance system that leverages a customer database built up over 55 years since its founding. In FY2026 (ending March 2026), the Maintenance Business achieved net sales of ¥2,075 million, operating profit of ¥393 million, and an operating margin of 18.9%. Stable recurring revenue from the existing customer base underpins the earnings of the entire group.

The company installed free water stations at the Osaka-Kansai Expo venue, demonstrating a reduction of approximately 50% in on-site waste generation compared to initial projections. By the close of the Expo, the number of water dispensing uses had surpassed 12 million. Building on this track record, the company has been accumulating advance orders from municipalities and school facilities, and is progressively turning the social demand for measures against plastic waste and heatstroke prevention into concrete business opportunities.

The company's in-house technology development division (Edison Division) works in coordination with the product development department of its subsidiary OSG Water Tech Co., Ltd., establishing an integrated system covering everything from planning and development to manufacturing, sales, and maintenance. This structure allows customer feedback to be directly reflected in product development, and R&D expenses for FY2026 (ending March 2026) totaled ¥45 million. The company also holds the distinction of being the only company in its industry to have won the Grand Prize for ten consecutive years at the "Hito Suzumi Award" heatstroke-prevention awareness campaign.

Building on the track record of Water Stations at the Osaka-Kansai Expo and awards received for SDGs and heat stroke prevention initiatives, inquiries from municipalities, schools, and public facilities nationwide have increased substantially. The company has achieved certain results in the form of advance orders, and the mandatory heat stroke countermeasures introduced under the revised Industrial Safety and Health Act, effective June 2025, are functioning as an external tailwind.

Amid rising demand for safe and reliable drinking water driven by water quality concerns such as PFAS, the company is expanding a subscription-based model for household Water Purifiers. Progress continued in Q1, and this is also expected to contribute to future expansion of the customer base for the Maintenance Business.

Through the closure of unprofitable stores and restructuring of the profit structure, the scale of losses has narrowed substantially. Sales per directly-operated store improved to 106.2% year-on-year, and management has stated that progress toward profitability within the current fiscal year is proceeding as planned.

Efforts to capture inbound demand, together with ongoing new product development and social media utilization initiatives, have proven effective, with Q1 progress exceeding plan. Two new stores are planned to open within the current fiscal year, further strengthening the foundation for growth.

A three-store framework serving as a model for franchise expansion has been established in Shanghai. The brand has been selected for three consecutive years (2023, 2024, and 2025) as one of the "POP Shanghai 100" (a list of 100 notable Shanghai stores). Going forward, the company will promote franchise expansion across all of China, concentrating management resources on markets with significant growth opportunities.

The new factory, which began operations in August 2024, has led to upfront fixed cost burdens, but production capacity has improved substantially. Alongside strengthening brand power by leveraging the 70th anniversary (next year) of Ganso Goban Kagurazaka Main Store, the company is expanding sales channels centered on the hotel and restaurant market.