SANRIN CO. ,LTD.

Business Details

A core segment encompassing LP gas, petroleum products, electricity, solar power generation, equipment/renovation, non-life insurance agency, and PPA business, among others. In addition to the Company itself, affiliates and subsidiaries operate this business, providing region-based lifestyle-related energy supply centered on Nagano Prefecture. In FY2026 (ending March 2026), sales to external customers were ¥26,035 million, accounting for approximately 85.3% of consolidated net sales, making it the largest segment. The segment also handles Equipment & Renovation Sales, and is strengthening proposals for energy-saving equipment and insulation renovation.

Recent Overview

Segment profit decreased 8.2% year on year due to lower LP gas and petroleum sales and increased costs

In the Energy-related Business for FY2026 (ending March 2026), despite factors boosting revenue in the equipment/renovation business, sales revenue was ¥26,035 million (down 2.6% year on year) due to a decline in the LP gas average selling price and a decrease in kerosene wholesale sales attributable to the warm winter, among other factors. Segment profit was ¥269 million (down 8.2% year on year) as selling, general and administrative expenses increased due to higher personnel costs, rising delivery costs, and expenses recorded for the replacement of Windows 11-compatible PCs. In addition, the segment recorded the full amount of an impairment loss of ¥197 million on property, plant and equipment and other assets. As a subsequent event, on April 1, 2026, the Company acquired all shares of Karuizawa Gas Co., Ltd., making it a subsidiary.

Key Products

Growth Drivers

• Expansion of the Equipment & Renovation business (increased orders for energy-saving equipment and insulation renovation utilizing government subsidies, steady replacement demand for commercial air conditioning equipment)
• Increased per-unit consumption driven by promotion of LP gas 'plus-one' products (gas fan heaters, clothes dryers, etc.)
• Expansion of the LP gas business customer base and sales scale through the full consolidation of Karuizawa Gas Co., Ltd. (completed April 1, 2026)
• Customer retention and reduced environmental impact through Web billing enabled by the Web Points Service "Sanrin My Page"
• Increase in the number of electricity contracts through active promotion of the Long-term Discount program
• Improved customer trust through promotion of safety-assurance equipment installation as a Gold Security-Certified Business Operator (achieving over 99% certification coverage)

Risks

• Risk of declining LP gas and petroleum products average selling prices (due to fluctuations in crude oil and LPG procurement prices)
• Structural decline in energy consumption due to progress toward a decarbonized society
• Profit pressure from rising fixed costs such as personnel and delivery costs
• Decrease in the number of consumer households due to the declining birthrate, aging population, and population decline
• Fluctuations in petroleum products (gasoline, kerosene) sales volume due to climate change and warm winters
• Impact of declining new housing starts on solar power generation system and storage battery sales
• Impairment loss risk on fixed assets (¥197 million recorded in FY2026, ending March 2026, doubling year on year)
• Rising procurement costs due to crude oil price surges (geopolitical risks such as Israeli and U.S. attacks on Iran)