Business and Financial Highlights
(Adopted Japanese GAAP)
MS Excel file | FYE Mar. 2012 - FYE Mar. 2024[13KB] |
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Overview of Operating Results (FYE Mar. 2024)
In the current consolidated fiscal year, the business environment surrounding our group has been on a moderate recovery trend, with improvements in employment and income conditions and the effects of various policies. On the other hand, the situation remains uncertain, with concerns about further increases in energy prices due to the tense situation in the Middle East and the depreciation of the yen.
Under such circumstances, our group announced the "Medium-Term Management Plan 2025" in May 2023. In this medium-term management plan, we have set three key messages for the sustainable growth of our group: ① growth of business profitability, ② strengthening of the foundation for sustainable growth, and ③ maximization of human resources and organizational vitality.
As for the performance in the current consolidated fiscal year, the number of our group's ongoing transaction customers increased by 59,000 (an increase of 106,000 in the previous consolidated fiscal year), reaching 3,358,000. The number of TLC members increased by 56,000 (an increase of 71,000 in the previous consolidated fiscal year), reaching 1,214,000. As a result of the increase in the number of group customers, sales reached a record high of 231,513 million yen (an increase of 0.6% compared to the previous consolidated fiscal year), marking the seventh consecutive year of sales growth. Operating profit was 15,511 million yen (an increase of 4.0%). In addition, ordinary profit was 15,531 million yen (an increase of 16.9%) due to a decrease in the burden of equity-method investment losses, and net profit attributable to owners of the parent company was 8,481 million yen (an increase of 31.2%).
As for the topics in the current consolidated fiscal year, in July 2023, as part of our efforts to achieve carbon neutrality, we invested in REPOWER ENERGY DEVELOPMENT CORPORATION, a subsidiary of the Pure Energy Holdings Corporation group, which operates a renewable energy generation business in the Republic of the Philippines. In addition, we made an additional investment in the company in February 2024 and made it an equity-method affiliate. In August 2023, we established a new business base for LP gas sales in Ise City, Mie Prefecture, and have been steadily achieving results in expanding our business foundation. In October of the same year, we were promoted to the highest level of "AWS Premier Tier Service Partner" in the AWS Partner Network, a partner certification program of Amazon Web Services (AWS)*, becoming the 14th company in Japan to do so. In December of the same year, we invested in Albatross Technology Co., Ltd. (Chuo-ku, Tokyo), which is working on the development of floating offshore wind power generation, and will use it to promote our group's GX (Green Transformation). In addition, in January 2024, we made UIS Co., Ltd. (Chiyoda-ku, Tokyo), which is engaged in contract development of systems and application development for medical institutions, a consolidated subsidiary. Furthermore, in March of the same year, we signed a stock transfer agreement to acquire the shares of Fuji Pro Co., Ltd. (Chigasaki City, Kanagawa Prefecture), which operates an LP gas business, and will make it a consolidated subsidiary from April of the same year.
We will continue to actively pursue business investments such as expanding our share and M&A, and strive for sustainable growth.
*Amazon Web Services (AWS): A cloud service provided by Amazon Web Services, Inc.
Future Outlook
Our group has formulated the TOKAI Group "Medium-Term Management Plan 2025" for the three years from fiscal 2023 to 2025. In this medium-term plan, we have set the themes of ① growth of business profitability, ② strengthening of the foundation for sustainable growth, and ③ maximization of human resources and organizational vitality as the issues to be addressed for the sustainable growth of our group.
For the fiscal year 2024, we plan to increase sales by increasing the number of customers and expanding the area mainly in our main businesses, and we expect to increase operating profit, ordinary profit, and net profit attributable to owners of the parent company, while incorporating appropriate business strategy costs and other expenses.
The consolidated earnings forecast for FY2024 is as follows.
Consolidated earnings forecast for the fiscal year ending March 31, 2025
Sales | 244,000 | million yen | (+5.4% YoY) |
Operating profit | 16,000 | million yen | (+3.2% YoY) |
Recurring profit | 16,000 | million yen | (+3.0% YoY) |
Net Income | 9,000 | million yen | (+6.1% YoY) |
These earnings forecasts are based on the information currently available to the Company. Actual results may differ from forecasts due to a variety of factors.
Operating Results
Financial Position
Cash Flows
Financial Index
MS Excel file | FYE Mar. 2024 - FYE Mar. 2025[14KB] |
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Explanation of consolidated operating results for the first quarter of the fiscal year ending March 31, 2025
During the first quarter of the consolidated cumulative period, the business environment surrounding our group saw improvements in employment and income conditions. However, due to the depreciation of the yen and high crude oil prices, consumer spending showed signs of stagnation.
This consolidated fiscal year marks the second year of our "Mid-Term Management Plan 2025," which concludes in fiscal year 2025. In terms of performance for the first quarter of the consolidated cumulative period, the number of continuous transaction customers in the group increased by 26,000 (compared to an increase of 13,000 in the same period last year), reaching 3,384,000. The number of TLC members increased by 15,000 (compared to an increase of 17,000 in the same period last year), reaching 1,229,000. Due to the increase in the number of group customers, net sales were 56,205 million yen (up 4.1% year-on-year), operating profit was 3,319 million yen (up 33.6% year-on-year), ordinary profit was 3,441 million yen (up 31.5% year-on-year), and quarterly net profit attributable to owners of the parent was 1,872 million yen (up 39.9% year-on-year).
Regarding topics for the first quarter of the consolidated cumulative period, in April 2024, we acquired shares of Fujipro Co., Ltd. (Chigasaki City, Kanagawa Prefecture), which operates an LP gas business, making it a consolidated subsidiary. Additionally, in April of the same year, we established a joint venture, PT TOKAICOM Mitra Indonesia, with PT Sisnet Mitra Sejahtera, which provides IT-related services in Indonesia, to expand and develop cloud service-related businesses and cloud talent development businesses in the country.
Furthermore, as part of our human capital management, from April, we expanded our support systems for childcare and caregiving for employees. In June, we partially revised the "TOKAI Group Health Management Guidelines" to improve employee engagement.