Firstly, I want to extend our heartfelt gratitude to all of our shareholders.

With regard to the results of the consolidated fiscal year ended March 31, 2023, net sales amounted to ¥320.281 billion (an increase of 7.0% compared to the previous fiscal year). Factors of the increase in net sales include the fact that the price of petroleum products increased compared to the previous fiscal year, and sales at our overseas business increased as a result of the depreciation of the Japanese yen. Also, sales of construction materials and the gondola business were favorable.

Operating income amounted to ¥21.674 billion (an increase of 4.5% compared to the previous fiscal year).

Factors contributing to the increase include the fact that the renovation of high-rise condominiums in the gondola business increased and performed well, and the sales of construction materials such as cement and raw concrete and the like were strong due to the demand for large-scale warehouses in the North Kanto area. Also, in the wind-power generation business, there were few repairs involving stopping wind turbines in the current fiscal year so operating rates improved. Furthermore, in the car dealer business, the supply of new cars increased and sales were robust.

The decrease is the result of an increase in costs associated with the conversion of the existing infrastructure coaxial cable network to an optical-fiber cable network (FTTH: Fiber to The Home) in the cable TV business, the postponement of the completion of multiple projects in the ODA trading company business to the next fiscal year or later, an increase in retirement benefit expenses due to a decline in the investment yield of pension assets. Also, the transfer of purchase prices did not move forward in the gas station business. As a result of the above, operating income increased.

Regarding non-operating income and expenses, there were increasing factors such as an increase in share of profit of entities accounted for using equity method. In view of the aforementioned, ordinary income amounted to ¥24.437 billion (an increase of 7.3% compared to the previous fiscal year).

As a result, the income before taxes and minority interests amounted to ¥23.914 billion (an increase of 10.4% compared to the previous fiscal year), and the profit attributable to owners of parent amounted to ¥14.864 billion (an increase of 13.7% compared to the previous fiscal year).

In our globalization efforts, EV of our overseas business amounted to ¥9.8 billion, which is about 13% of the total for EV (¥77.6 billion). In the future, we will continue to focus on globalization.

Furthermore, the year-end dividend for the fiscal year under review is \22. Combined with the interim dividend of \18 per share, the annual dividend is \40 per share, resulted in an increase from the annual dividend of \34 per share for the previous fiscal year (after considering the stock split on October 1, 2021).

We look forward to the coming year and your continuing support.

Note:Enterprise value (EV) is defined as funds used in operations.
EV = Net assets + debt – cash

June, 2023