NIPPON GAS CO.,LTD.

The number of LP gas customers as of the end of FY2026 (ending March 2026) was 1,051 thousand (up 21 thousand from the previous fiscal year-end), continuing monthly net increases. The company holds a 16% share within its operating area, and by focusing on detached houses and family-oriented apartment complexes, it has been building up a base of long-term contract customers. This customer base serves as the starting point for cross-selling electricity and city gas as well as equipment sales, supporting compound revenue growth.

The company has built a proprietary logistics and filling infrastructure, deploying multiple depot stations across the Kanto region centered on the "Yume no Kizuna Kawasaki" facility completed in 2021. Combined with ICT infrastructure such as automatic meter-reading systems and delivery optimization, it achieves operational efficiency exceeding the industry average. This infrastructure functions as an entry barrier that competitors cannot easily replicate in a short period of time.

In FY2026 (ending March 2026), the company took over LP gas customers from the largest number of companies since data collection began, and also achieved new consolidations such as Tokyo Energy Alliance. Backed by long-term relationship building, the company has established a mechanism for continuously absorbing customers handed over from exiting operators. With high capital efficiency—ROE of 22% and ROIC of 13%—as its weapon, it possesses the financial foundation to lead industry consolidation.

By focusing on detached houses and family-oriented multi-unit dwellings, the company achieved continuous monthly net increases, reaching 1,051 thousand contracts at the end of FY2026 (ending March 2026). It recorded the highest number of M&A transactions since data collection began, newly consolidating Tokyo Energy Alliance and others. From FY2027 (ending March 2027) onward, the company plans to continue promoting industry consolidation, including taking over customers from withdrawing operators.

The electricity set rate was raised to 24.3% at the end of FY2026 (ending March 2026) (from 23.5% at the end of the previous fiscal year), and the number of electricity customers expanded to 404 thousand contracts (up 24 thousand contracts from the previous fiscal year-end). Backed by a pricing design not linked to the wholesale electricity market and secured stable power sources, the company will continue to actively expand its business scale, including taking over customers from withdrawing operators.

Sales volume of hybrid water heaters increased 36% year on year, and gross profit in the Equipment, Installation & Platform business expanded to ¥4,769 million (up 14.0% year on year). From FY2027 (ending March 2027) onward, the company aims to expand housing-related services such as high-pressure drain cleaning, air conditioner cleaning, and house cleaning, with the goal of extending contract duration and increasing revenue per customer.

Under the medium-term management plan for FY2024 (ending March 2024) through FY2026 (ending March 2026), the equity ratio was reduced from 48% (end of FY2023, ending March 2023) to 41% (end of FY2026, ending March 2026), achieving the target ROE of 22.0%. In FY2026 (ending March 2026), the company returned a total of ¥18,964 million to shareholders, comprising ¥8,202 million in share buybacks and ¥10,762 million in dividends. The annual dividend forecast for FY2027 (ending March 2027) is ¥110 (up from ¥103 in the previous fiscal year), maintaining a policy of increasing dividends. As a subsequent event, the cancellation of 4,875,400 treasury shares (4.3% of total shares issued) is scheduled for May 14, 2026.

By using AI/IoT to control hybrid water heaters, storage batteries, solar panels, and other devices that combine electricity and gas, the company aims to reduce peak electricity demand and contribute to the stabilization of the power grid. By realizing the added value of proposing optimal energy usage, the company seeks to establish its position as an infrastructure operator responding to the instability of regional energy supply and demand.