Interim report
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Consolidated Financial Results for the Six Months Ended September 30th, 2025 [Japanese GAAP] October 28th, 2025 Company name: NIPPON GAS CO., LTD. Code number: 8174 URL: https://www.nichigas.co.jp/en/ Stock exchange listing: Tokyo Stock Exchange Representative: Kunihiko Kashiwaya, Representative Director, Chief Executive Officer Contact: Madoka Yamagishi, Executive Officer, General Manager, Financial Department Phone: +81-3-5308-2111 Scheduled date of filing semi-annual securities report: November 11th, 2025 Scheduled date of commencing dividend payments: November 19th, 2025 Availability of supplementary briefing material on financial results: Available Schedule of financial results briefing session: Scheduled (for institutional investors) (Amounts are rounded down to the nearest million yen.) 1. Consolidated Financial Results for the Six Months Ended September 30th, 2025 (April 1st, 2025 to September 30th, 2025) (1) Consolidated Results of Operations (% indicates changes from the previous corresponding period.) Net sales Operating income Ordinary income Profit attributable to owners of parent Millions of yen % Millions of yen % Millions of yen % Millions of yen % Six Months ended Sep. 30th, 2025 88,195 2.5 4,997 116.6 5,036 108.7 3,439 113.7 Six Months ended Sep. 30th, 2024 86,049 0.6 2,307 (49.5) 2,412 (48.8) 1,609 (51.0) (Note) Comprehensive income: Six Months ended Sep. 30th, 2025 ¥3,483 million [766.4%] Six Months ended Sep. 30th, 2024 ¥402 million [(89.4)%] Basic earnings per share Diluted earnings per share Yen Yen Six Months ended Sep. 30th, 2025 31.54 – Six Months ended Sep. 30th, 2024 14.49 – (2) Consolidated Financial Position Total assets Net assets Equity ratio Millions of yen Millions of yen % As of Sep. 30th, 2025 138,929 64,696 46.6 As of Mar. 31st, 2025 156,018 67,446 43.2 (Reference) Equity: As of Sep. 30th, 2025 ¥64,695 million As of Mar. 31st, 2025 ¥67,445 million 2. Dividends Annual dividends End of 1Q End of 2Q End of 3Q Year-end Total Yen Yen Yen Yen Yen Fiscal year ended Mar. 31st, 2025 － 46.25 － 46.25 92.50 Fiscal year ending Mar. 31st, 2026 － 51.50 Fiscal year ending Mar. 31st, 2026 (Forecast) － 51.50 103.00 (Note) Revision of dividend projection from recently published figures: No Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
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3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31st, 2026 (April 1st, 2025 to March 31st, 2026) (% indicates changes from the previous corresponding period.) Operating income Ordinary income Profit attributable to owners of parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Yen Full-year 20,000 7.8 20,000 7.6 14,000 21.2 129.58 (Note) Revision of financial results projection from recently published figures: No 4. Notes (1) Significant changes in the scope of consolidation during the period: No (2) Adoption of special accounting processes for preparing quarterly consolidated financial statements: No (3) Changes to accounting policies, changes to accounting estimates, and revision restatements 1) Changes to accounting policies accompanying the revision of accounting standards, etc.: No 2) Changes to accounting policies other than 1) above: No 3) Changes to accounting estimates: No 4) Revision restatements: No (4) Total number of issued shares (common shares) 1) Total number of issued shares (including treasury shares): Sep. 30th, 2025 112,827,198 shares Mar. 31st, 2025 112,827,198 shares 2) Total number of treasury shares at the end of the period: Sep. 30th, 2025 4,086,014 shares Mar. 31st, 2025 3,809,581 shares 3) Average number of shares during the period: Six months ended Sep. 30th, 2025 109,043,877 shares Six months ended Sep. 30th, 2024 111,057,576 shares * These financial results are outside the scope of review by a certified public accountant or an audit corporation. * Explanation of the proper use of performance forecast and other notes The earnings forecasts and other forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable as of the date of publication of this document, but not intended to deliver the Company’s commitment to fulfilling them. In addition, actual results may differ significantly from these forecasts due to a wide range of factors. Please refer to “Financial Results Briefing Materials for the 2Q of FY Ending in March 2026,” which was disclosed separately today, for the notes on the use of preconditions for the earnings forecast and the use of the earnings forecast.
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- 1 - Contents of Appendix 1. Qualitative Information on Consolidated Performance for the Period under Review --------------------------------------- 2 (1) Explanation of Results of Operations ------------------------------------------------------------------------------------------ 2 (2) Explanation of Financial Position and Cash Flows -------------------------------------------------------------------------- 5 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information ------------------- 6 2. Consolidated Financial Statements and Primary Notes ------------------------------------------------------------------------- 7 (1) Consolidated Balance Sheet ----------------------------------------------------------------------------------------------------- 7 (2) Consolidated Statement of Income and Comprehensive Income ----------------------------------------------------------- 9 (3) Consolidated Statement of Cash Flows ---------------------------------------------------------------------------------- 11 (4) Notes to Consolidated Financial Statements ----------------------------------------------------------------------------- 13 (Notes on Going Concern Assumption) ------------------------------------------------------------------------------- 13 (Notes in Case of Significant Changes in Shareholders’ Equity) ------------------------------------------------------13 (Segment Information, etc.) -----------------------------------------------------------------------------------------------14 (Significant Subsequent Events) --------------------------------------------------------------------------------------15 3. Others ---------------------------------------------------------------------------------------------------------------------------------- 16
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- 2 - 1. Qualitative Information on Consolidated Performance for the Period under Review (1) Explanation of Results of Operations [Business Environment Surrounding the Group] The U.S. policies introduced by the Trump 2.0 Administration are causing huge impacts on various count ries. At present, tariff costs, once absorbed by companies, are now poised to pass through to consumers, fueling concerns about an economic downturn. From the perspective of ensuring stable energy, secu ring the supply chain over the medium to long term ha s become an even more important challenge, due to the prolonged Russian invasion of Ukraine, rising tensions in the Middle East, and signs of change in the relationship among the U.S. and European nations as well . In the domestic energy business, business operators face numerous challenges for the following reasons, for example: the serious labor shortage due to declining birthrate and aging population, business succession issues, sluggish sales volume growth due to high temperatures, response to decarbonization, rising prices, and higher energy costs following the expiration of government subsidies. [Issues Faced by the Energy Industry and Solutions] Against this backdrop of shifting times, accurately identifying the needs and issues of local comm unities and transforming business models has become essential for achieving sustainable growth. The Company believes that what will be the most necessary for future local communities is the establishment of “integrated energy management capabilities” that transcends the boundaries between energy sources such as electricity and gas. As the ratio of renewable energy, the output of which is difficult to control, continues to rise, it is neither reasonable nor realistic to rely solely on electricity infrastructure to manage and stabilize supply and demand amid growing consumption driven by AI and data centers. To this end, the Company aims to combine electricity and gas while making full use of AI/IoT -controlled energy solution appliances (hybrid water heaters, storage batteries, solar panels, smart remotes, etc.) to strengthen its energy balancing capabilities and, thereby, aims to reduce peak electricity demand and contributes to stabilizing the power grid in the end. As the NICIGAS Group is responsible for the “last mile” of energy delivery, we will swiftly create added value by providing proposals for optimal energy use, thereby offering a comfortable, safe, and secure foundation for local communities facing growing instability in energy supply and demand. In addition, the Company is steadily shifting its business model from traditional energy business that faces declining demand and market contraction to one that captures demand and growth opportunities in the emerging market for optimal energy utilization. On the other hand, there are limits to what the NICIGAS Group can achieve on its own. What is now required to solve issues is co -creation—working together across company boundaries to innovate . From this perspective, NICIGAS Group is expanding collaboration by offering our resources, including joint use of the Kaw asaki filling plant “Yume no Kizuna,” as well as our delivery, regular safety inspection, and service applications, etc. as a platform (PF) to business operators who share our sense of urgency and goals. This year, in an effort to scale up co -creation, we redesigned our LP gas cylinders. The new design prominently features the name of Energy Sola Platforms Co., Ltd., which operates NICIGAS’ PF business, rather than NIPPON GAS CO., LTD ., which handles retail s. This initiative is intended to promote the use of the cylinders as “standardized cylinder” among PF users and to create an open environment where other companies can ask to deliever their cylinders with ease through utilizing our delivery PF service. [Market Consolidation and a Medium-Term Plan for the Next Term] Currently, approximately 5,000 operators are supplying LP gas to 6.50 million households using LP gas located in the Kanto region . The environment surrounding the business is changing drastically, reaching the point where the restructuring of the market starts in full swing. With its network of infrastructures, NICIGAS Group can support the restructuring and achieve synergies from the integration. By leveraging DX, we are also tackling labor shortages in operations such as delivery, meter r eading, and safety inspection. Our financial base is robust enough for next- generation growth investments. Capitalizing on these advantages, we are committed to lead market consolidation as a pioneer in commercializing the comprehensive energy business as well as popularizing and expanding the optimal energy use in the deregulated energy market. NICIGAS Group has been growing through a virtuous cycle of the customer base expansion through effective by sales strategy and capital efficiency optimization through a balance sheet reform . During the period of a next Medium-Term Plan, a period in which the market will become increasingly polarized, we will incorporate large M&As and expansion of the platform business into the existing organic growth strategies. We will increase corporate value and earning power by expanding the asset scale while keeping lean capital as much as possible. Toward achieving a long-term growth target of a market capitalization of ¥500.0 billion by the fiscal year ending March 31st, 2031 , the entire Company works to continue taking up challenges, while contributing to local communities.
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- 3 - [Consolidated Financial Results] (Millions of yen) Six months ended September 30th, 2024 Six months ended September 30th, 2025 YoY change YoY change (%) Net sales 86,049 88,195 2,145 2.5% Gross profit 30,809 32,048 1,239 4.0% Operating income 2,307 4,997 2,689 116.6% Ordinary income 2,412 5,037 2,623 108.7% Profit attributable to owners of parent 1,609 3,439 1,829 113.7% For the six months ended September 30th, 202 5, gross profit from the electricity business increased due to a rise in electricity subscription as well as an increase in electricity sales volumes . Moreover, each stage of profit from operating income to profit attributable to owners of parent grew significantly, due to a major decline in selling, general and administrative expenses. The decrease in selling, general and administrative expenses is due to a significant reduction in customer acquisition cost following the review of the acquisition policy in line with the revision of the ministerial ordinance on the Liquefied Petroleum Gas Act enforced in July 2024. ◇ LP Gas Business In the LP gas business segment, gross profit from the LP gas business was ¥18,622 million (down ¥217 million year on year), and gross profit from equipment, construction, and platform business was ¥1,978 million (up ¥210 million year on year). Gross profit from the LP gas business decreased due to a decline in gross profit from LP gas for commercial use, which was affected by fluctuations in raw material prices, despite an increase in gross profit from LP gas for household use. Sales of equipment, including high-performance gas water heaters and hybrid water heaters, together with steady expansion in safety inspection contracts from other companies in the platform business, contributed to an increase in gross profit. Regarding sales activities, following revision of the ministerial ordinance on the Liquefied Petroleum Gas Act in July 2024, the Company has shifted new customer acquisition from apartment complexes to detached houses. While reducing customer acquisition costs, we consistently achieved a net increase of approximately 2 thousand customers per month, bringing our total number of customers to 1.04 million, an increase of 26 thousand customers year on year. In terms of M&As, progress has been made at a pace exceeding the historical average, albeit on a small scale, and we will continue to actively make M&A proposals in the second half of the fiscal year. Six months ended September 30th, 2024 Six months ended September 30th, 2025 YoY change YoY change (%) Gross profit (millions of yen) LP gas 18,840 18,622 (217) (1.2)% Equipment, construction, platform, etc. 1,767 1,978 210 11.9% Gas sales volume (1,000 tons)* Household use 64.6 65.1 0.5 0.8% Commercial use 52.3 49.3 (3.0) (5.7)% No. of customers (1,000 customers) 1,015 1,041 26 2.6% * In accordance with the adoption of the Accounting Standard for Revenue Recognition, sales volume on a meter reading basis is adjusted to the sales volume until the end of the period.
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- 4 - ◇ Electricity Business Gross profit from the electricity business segment totaled ¥3,124 million (up ¥1,264 million year on year). The reason for the increase in gross profit from the electricity business is the increase in sales volume as a result of the increase in electricity subscriptions. Profit margins have also improved, supported by favorable movements in fuel prices. New customer acquisition has been strong through online applications, with the total number of customers increasing by 30 thousand from the end of the previous fiscal year to 395 thousand. The percentage of customers bundling gas and electricity services increased from 22.8% at the end of the same period in the previous fiscal year to 24.1%. In November, we plan to launch a campaign targeting communities, further strengthening online applications and boosting the number of new customers. Six months ended September 30th, 2024 Six months ended September 30th, 2025 YoY change YoY change (%) Gross profit (millions of yen) Electricity 1,860 3,124 1,264 68.0% Electricity sales volume (GWh)* Household use 717 811 94 13.1% No. of customers (1,000 customers) 365 395 30 8.2% * In accordance with the adoption of the Accounting Standard for Revenue Recognition, sales volume on a meter reading basis is adjusted to the sales volume until the end of the period. ◇ City Gas Business Gross profit from the city gas business was ¥ 7,810 million (down ¥30 million year on year), and gross profit from equipment and construction was ¥512 million (up ¥12 million year on year). In the city gas business, gas consumption per unit for household use remained sluggish due to higher temperatures; however, with net increase in the number of customers turning positive, sales volumes and gross profit of gas for household use both remained at the same level as the previous fiscal year. The total number of customers has steadily increased since the beginning of the period under review, supported by strong acquisition* targeting communities such as sports. * The Company provides a plan in which a portion of gas and electricity fees is allocated for the operating costs of sports teams for which we serve as a corporate partner. Six months ended September 30th, 2024 Six months ended September 30th, 2025 YoY change YoY change (%) Gross profit (millions of yen) Gas 7,841 7,810 (30) (0.4)% Equipment, construction, etc. 499 512 12 2.5% Gas sales volume (1,000 tons)* Household use 51.8 52.0 0.2 0.4% Commercial use 95.4 90.0 (5.4) (5.7)% No. of customers (1,000 customers) 590 598 8 1.4% * In accordance with the adoption of the Accounting Standard for Revenue Recognition, sales volume on a meter reading basis is adjusted to the sales volume until the end of the period.
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- 5 - (2) Explanation of Financial Position and Cash Flows [Analysis of Assets, Liabilities and Net Assets] With the aim of increasing the Return on Equity, or ROE, the Company has set Return on Invested Capital (ROIC) as a KPI and is working to improve it in order to increase the profitability of our assets. ・Total assets as of the end of the semi-annual period under review decreased by ¥17,000 million or 11.0% from the end of the previous fiscal year to ¥138,900 million. The decrease was mainly due to a decrease of ¥8,300 million in trade receivables caused by seasonal factors and a decrease of ¥6,300 million in cash on hand needed. ・Total liabilities as of the end of the semi-annual period under review decreased by ¥14,300 million or 16.2% from the end of the previous fiscal year to ¥ 74,200 million, and net assets decreased by ¥ 2,700 million or 4.1% from the end of the previous fiscal year to ¥64,600 million. The main factors for the decrease in liabilities were a ¥5,800 million decrease in notes and accounts payable - trade and a ¥3,400 million decrease in income taxes payable due to seasonal factors, as well as a ¥ 3,900 million decrease in interest -bearing liabilities to ¥43,000 million from the end of the previous fiscal year. The main factor for th e decrease in net assets was that dividend payments of ¥5, 000 million exceeded the increase in net income of ¥3,400 million. ・The debt-to-equity ratio was 0.7 times, and the shareholders’ equity ratio was 46.6%. While ensuring the stability of its financial base, the Company will pursue purchase of treasury shares at appropriate times to raise capital with an awareness of its funding costs (WACC) toward an optimal capital structure (shareholders’ equity ratio of 40% at the end of the fiscal year ending March 31st, 2026). (Billions of yen) March 31st, 2025 September 30th, 2025 Change Current assets 57.4 41.8 (15.5) Of which, Cash and deposits 19.8 13.4 (6.3) Trade receivables 31.3 22.9 (8.3) Inventories 5.6 4.5 (1.0) Non-current assets 98.6 97.0 (1.5) Liabilities 88.5 74.2 (14.3) Of which, Interest-bearing liabilities 46.9 43.0 (3.9) Equity (Equity ratio) 67.4 (43.2%) 64.6 (46.6%) (2.7) Total assets 156.0 138.9 (17.0) [Analysis of Cash Flows] Balance of cash and cash equivalents as of the end of the semi-annual period under review was ¥13,406 million, remaining generally at the same level as the end of the semi-annual period of the previous fiscal year. (Net cash provided by (used in) operating activities) Net cash provided by operating activities amounted to ¥8,464 million, down by ¥659 million year on year. The main causes of the decrease , despite a year -on-year increase of ¥2,500 million in p rofit before income taxes, were an increase of ¥2,400 million in payment of consumption and income taxes, which had been restrained in the previous fiscal year, and a decrease of ¥900 million in obligations with the extended payment term (capacity contribution charges). (Net cash provided by (used in) investing activities) Net cash used in investing activities amounted to ¥ 3,605 million, remaining at the same level as the previous fiscal year. In the interim period , ICT investment s are gradually decreased as we entered the operation phase, while investment was made in the replacement and extension of aging city gas pipelines and in the opening of Nagano sales office.
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- 6 - (Net cash provided by (used in) financing activities) Net cash used in financing activities amounted to ¥10 ,883 million, down by ¥442 million year on year. The main outflows were dividends paid of ¥5,000 million and ¥1,400 million for the acquisition of treasury shares under the executive remuneration BIP trust, with the remainder consisting of repayments of loans. (Millions of yen) Six months ended September 30th, 2024 Six months ended September 30th, 2025 Change Cash flows from operating activities 9,124 8,464 (659) Cash flows from investing activities (3,417) (3,605) (187) Free cash flow 5,706 4,859 (847) Cash flows from financing activities (11,325) (10,883) 442 Net increase (decrease) in cash and cash equivalents (5,622) (6,024) (402) Cash and cash equivalents at end of period 13,091 13,406 315 (3) Explanation of Consolidated Financial Results Forecast and Other Forward-looking Information Regarding the financial results forecasts for the full year ending March 31st, 2026, no change has been made to those stated in the forecast released on May 1, 2025. For further details, please refer to the “Financial Results Briefing Materials for the 2Q of FY Ending in March 2026,” which was disclosed separately today.
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- 7 - 2. Consolidated Financial Statements and Primary Notes (1) Consolidated Balance Sheet (Millions of yen) Account Fiscal year ended Mar. 31st, 2025 (As of Mar. 31st, 2025) Six months ended Sep. 30th, 2025 (As of Sep. 30th, 2025) Assets Current assets Cash and deposits 19,810 13,480 Notes and accounts receivable - trade 24,897 22,226 Merchandise and finished goods 5,484 4,463 Raw materials and supplies 136 95 Other 7,194 1,709 Allowance for doubtful accounts (119) (121) Total current assets 57,403 41,852 Non-current assets Property, plant and equipment Buildings and structures, net 15,119 15,058 Machinery, equipment and vehicles, net 27,216 26,421 Tools, furniture and fixtures, net 483 235 Land 30,295 30,295 Leased assets, net 7,086 6,703 Construction in progress 805 1,151 Total property, plant and equipment 81,006 79,865 Intangible assets Goodwill 1,146 1,062 Other 5,519 5,265 Total intangible assets 6,666 6,327 Investments and other assets Investment securities 2,130 2,274 Long-term loans receivable 4,632 4,807 Deferred tax assets 8,760 8,453 Other 2,835 2,726 Allowance for doubtful accounts (7,418) (7,378) Total investments and other assets 10,941 10,883 Total non-current assets 98,614 97,076 Total assets 156,018 138,929
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- 8 - (Millions of yen) Account Fiscal year ended Mar. 31st, 2025 (As of Mar. 31st, 2025) Six months ended Sep. 30th, 2025 (As of Sep. 30th, 2025) Liabilities Current liabilities Notes and accounts payable - trade 17,332 12,066 Electronically recorded obligations - operating 3,572 2,992 Short-term loans payable 4,000 4,900 Current portion of long-term debt 9,471 8,216 Lease obligations 1,512 1,504 Income taxes payable 4,969 1,533 Provision for bonuses 239 356 Other 8,214 7,122 Total current liabilities 49,311 38,692 Non-current liabilities Long-term loans payable 25,700 22,554 Lease obligations 6,254 5,837 Deferred tax liabilities for land revaluation 209 209 Provision for share-based compensation 1,246 1,028 Provision for gas holder repairs 315 348 Net defined benefit liability 3,810 3,895 Other 1,722 1,667 Total non-current liabilities 39,260 35,541 Total liabilities 88,572 74,233 Net assets Shareholders’ equity Capital stock 7,070 7,070 Capital surplus 5,860 5,860 Retained earnings 62,712 61,059 Treasury shares (7,831) (8,972) Total shareholders’ equity 67,811 65,017 Accumulated other comprehensive income Valuation difference on available-for-sale securities (174) (104) Deferred gains or losses on hedges 6 (146) Foreign currency translation adjustment (358) (202) Remeasurements of defined benefit plans 161 131 Total accumulated other comprehensive income (365) (322) Non-controlling interests 0 0 Total net assets 67,446 64,696 Total liabilities and net assets 156,018 138,929
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- 9 - (2) Consolidated Statement of Income and Comprehensive Income (Consolidated Statement of Income) (Millions of yen) Account For the six months ended Sep. 30th, 2024 (from Apr. 1st, 2024 to Sep. 30th, 2024) For the six months ended Sep. 30th, 2025 (from Apr. 1st, 2025 to Sep. 30th, 2025) Net sales 86,049 88,195 Cost of sales 55,240 56,146 Gross profit 30,809 32,048 Selling, general and administrative expenses 28,502 27,051 Operating income 2,307 4,997 Non-operating income Interest income 1 11 Dividend income 1 0 Real estate rent 43 45 Insurance income 31 27 Share of profit of entities accounted for using equity method 65 44 Other 82 58 Total non-operating income 225 188 Non-operating expenses Interest expenses 99 134 Foreign exchange losses 10 2 Other 10 12 Total non-operating expenses 120 149 Ordinary income 2,412 5,036 Extraordinary income Gain on sales of non-current assets 21 1 Gain on sales of investment securities 0 – Gain on sale of membership – 6 Total extraordinary income 22 8 Extraordinary losses Loss on retirement of non-current assets 39 61 Total extraordinary losses 39 61 Profit before income taxes 2,395 4,983 Income taxes - current 605 1,248 Income taxes - deferred 180 296 Total income taxes 786 1,544 Profit 1,609 3,439 Loss attributable to non-controlling interests – (0) Profit attributable to owners of parent 1,609 3,439
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- 10 - (Consolidated Statement of Comprehensive Income) (Millions of yen) Account For the six months ended Sep. 30th, 2024 (from Apr. 1st, 2024 to Sep. 30th, 2024) For the six months ended Sep. 30th, 2025 (from Apr. 1st, 2025 to Sep. 30th, 2025) Profit 1,609 3,439 Other comprehensive income Valuation difference on available-for-sale securities (571) 70 Deferred gains or losses on hedges (420) (152) Remeasurements of defined benefit plans, net of tax 7 (29) Share of other comprehensive income of entities accounted for using equity method (222) 156 Total other comprehensive income (1,207) 43 Comprehensive income 402 3,483 Comprehensive income attributable to Comprehensive income attributable to owners of parent 402 3,483 Comprehensive income attributable to non-controlling interests – (0)
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- 11 - (3) Consolidated Statement of Cash Flows (Millions of yen) Account For the six months ended Sep. 30th, 2024 (from Apr. 1st, 2024 to Sep. 30th, 2024) For the six months ended Sep. 30th, 2025 (from Apr. 1st, 2025 to Sep. 30th, 2025) Cash flows from operating activities Profit before income taxes 2,395 4,983 Depreciation 5,037 4,885 Amortization of goodwill 486 339 Increase (decrease) in allowance for doubtful accounts (571) (39) Increase (decrease) in net defined benefit liability 104 84 Increase (decrease) in provision for share-based compensation (74) (218) Increase (decrease) in allowance for loss on voluntary recall of products (23) – Interest and dividend income (3) (12) Interest expenses 99 134 Foreign exchange losses (gains) 3 0 Share of loss (profit) of entities accounted for using equity method (65) (44) Loss (gain) on sales of non-current assets (21) (1) Loss on retirement of non-current assets 39 61 Loss (gain) on sales of investment securities (0) – Decrease (increase) in notes and accounts receivable - trade 8,025 2,671 Decrease (increase) in inventories 411 1,062 Decrease (increase) in accounts receivable - other 821 5,706 Increase (decrease) in notes and accounts payable - trade (5,121) (5,714) Increase (decrease) in accrued consumption taxes 306 (1,156) Other, net 807 291 Subtotal 12,654 13,035 Interest and dividend income received 3 12 Interest expenses paid (101) (136) Income taxes paid (3,432) (4,447) Net cash provided by (used in) operating activities 9,124 8,464 Cash flows from investing activities Purchase of property, plant and equipment (2,127) (2,596) Proceeds from sales of property, plant and equipment 66 2 Purchase of intangible assets (1,268) (759) Purchase of goodwill (78) (248) Proceeds from sales of investment securities 1 0 Payments of loans receivable – (0) Collection of loans receivable 10 15 Other, net (22) (17) Net cash provided by (used in) investing activities (3,417) (3,605)
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- 12 - (Millions of yen) Account For the six months ended Sep. 30th, 2024 (from Apr. 1st, 2024 to Sep. 30th, 2024) For the six months ended Sep. 30th, 2025 (from Apr. 1st, 2025 to Sep. 30th, 2025) Cash flows from financing activities Increase in short-term loans payable 40,000 6,300 Decrease in short-term loans payable (38,250) (5,400) Proceeds from long-term borrowings 1,500 1,000 Repayments of long-term loans payable (5,710) (5,439) Purchase of treasury shares (3,770) (1,484) Cash dividends paid (4,247) (5,099) Other, net (847) (759) Net cash provided by (used in) financing activities (11,325) (10,883) Effect of exchange rate change on cash and cash equivalents (3) (0) Net increase (decrease) in cash and cash equivalents (5,622) (6,024) Cash and cash equivalents at beginning of period 18,713 19,431 Cash and cash equivalents at end of period 13,091 13,406
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- 13 - (4) Notes to Consolidated Financial Statements (Notes on Going Concern Assumption) None. (Notes in Case of Significant Changes in Shareholders’ Equity) During the semi-annual period under review, in connection with the extension of the “ Executive Remuneration BIP Trust” (a performance-based stock remuneration plan for Directors), the trust acquired shares of the Company’s stock. The shares remaining in the trust are recorded as treasury shares. As a result, treasury shares increased by ¥1, 140 million during the six months ended September 30th, 2025, bringing the total to ¥8,972 million at the end of the period.
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- 14 - (Segment Information, etc.) 1. Information on net sales and income (loss) by reportable segment and breakdown of revenue For the six months ended September 30th, 2024 (from April 1st, 2024 to September 30th, 2024) (Millions of yen) Reportable segments Total LP Gas Business Electricity Business City Gas Business Net sales (1) LP gas, electricity and city gas a. Revenue generated from April 1st, 2024 to the September meter reading date 26,897 20,456 23,089 70,444 b. Revenue generated from the September meter reading date to September 30th, 2024 3,206 1,525 1,156 5,888 Total 30,104 21,982 24,246 76,333 (2) Equipment, construction contracts, platform, etc. 7,368 – 2,347 9,716 Revenue from contracts with customers 37,473 21,982 26,593 86,049 Net sales to outside customers 37,473 21,982 26,593 86,049 Segment income 20,608 1,860 8,341 30,809 For the six months ended September 30th, 2025 (from April 1st, 2025 to September 30th, 2025) (Millions of yen) Reportable segments Total LP Gas Business Electricity Business City Gas Business Net sales (1) LP gas, electricity and city gas a. Revenue generated from April 1st, 2025 to the September meter reading date 27,030 22,422 21,785 71,238 b. Revenue generated from the September meter reading date to September 30th, 2025 3,119 2,176 1,189 6,485 Total 30,150 24,599 22,974 77,724 (2) Equipment, construction contracts, platform, etc. 8,279 – 2,191 10,471 Revenue from contracts with customers 38,429 24,599 25,166 88,195 Net sales to outside customers 38,429 24,599 25,166 88,195 Segment income 20,600 3,124 8,323 32,048
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- 15 - 2. Differences between income (loss) of reportable segment totals and amounts in the consolidated statement of income and the main components of those differences (matters related to difference adjustments) (Millions of yen) Income Six months ended September 30th, 2024 Six months ended September 30th, 2025 Reporting segment total 30,809 32,048 Selling, general and administrative expenses 28,502 27,051 Operating income in the consolidated statement of income 2,307 4,997 (Significant Subsequent Events) (Purchase of Treasury Shares) The Company resolved at the meeting of the Board of Directors held today to purchase treasury shares pursuant to the provisions of Article 156 of the Companies Act applied mutatis mutandis pursuant to the provisions of Article 165, Paragraph 3 of the same Act. (1) Reason for the purchase of treasury shares Considering the progress of the enhancement of its financial base for achieving growth, the Company intends to purchase treasury shares to enhance shareholder returns and increase capital efficiency. (2) Details of the matters associated with the purchase 1) Class of shares to be purchased: Common shares of the Company 2) Total number of shares to be purchased: 4,000,000 shares (upper limit) 3) Total cost of share purchase: ¥9,000 million (upper limit) 4) Purchase period: October 29th, 2025 to March 31st, 2026 5) Method of purchase: Market purchase under discretionary transaction agreements for share repurchase
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- 16 - 3. Others 973 981 997 1,015 1,030 1,041 414 417 601 590 590 598 253 232 320 334 345 365 381 395 0 500 1,000 1,500 2,000 2023.3 2023.9 2024.3 2024.9 2025.3 2025.9 Number of Consumer Households LP gas Existing city gas New city gas Electricity (Unit: 1,000 households ) ■Post restructuring No. of mediation cases 186 65 179 65 179 65 121 52 114 52 109 49 167 53 150 52 148 52 210 106 215 95 197 90 1,297 665 1,427 717 1,587 811 0 200 400 600 800 1,000 1,200 1,400 1,600 0 200 400 600 2023.3 2023.9 2024.3 2024.9 2025.3 2025.9 Gas / Electricity Sales Volume LP gas (household use) LP gas (commercial use) City gas (household use) City gas (commercial use) Electricity (Unit: 1,000 tons) (Unit: GWh)
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- 17 - 0 20 40 60 80 100 120 140 160 180 200 0 200 400 600 800 1,000 1,200 2 0 2 3 . 3 2 0 2 4 . 9 2 0 2 4 . 3 2 0 2 4 . 9 2 0 2 5 . 3 2 0 2 5 . 9 RAW MATERIAL PRICES Propane CP (Left side) LNG CIF (Right side) (Unit: $/t) (Unit: ¥1,000/t)