Continuing to grow as an energy solutions company
Since our establishment in 2005, gremz Group has sought to develop various types of products and services aimed at providing broad-ranging energy solutions for our customers with a view to the full liberalization of Japan’s electricity market. We were listed on the JASDAQ Securities Exchange in 2009, just three years and eight months after starting business. In June 2020, we changed the market to the Second Section of the Tokyo Stock Exchange.
In November 2020, we were listed on the First Section of the Tokyo Stock Exchange.
Our result of fiscal year ended March 31, 2020, net sales came to ¥15.4 billion, marking the fifteenth consecutive year that we have achieved growth — stretching back to our foundation. Meanwhile, operating income was ¥2.1 billion, a record high for the fifth consecutive fiscal year, as we continue to drive sustainable growth. Our financial position is also sound, with the equity ratio exceeding 50%.
There are three business segments for gremz Group.
Energy Cost Solutions Business proposes ways for business clients to reduce energy costs. We currently have a base of about 49,500 customers for low-voltage requirements and around 2,300 customers for high-voltage requirements.
In Smart House Project Business, we sell energy-saving products to general consumers, such as photo-voltaic systems and storage batteries. Our customer base includes roughly 14,000 customers in this segment. For generation of renewable energy, we operate mega-solar power plants in Japan generating roughly 3mW.
In Electricity Retailing Business, we provide a power supply service to customers. We cross-sell to existing customers from our Energy Solutions Business, which means that we have a high contract closure rate and can maintain these customers with low-cost offerings. This segment therefore boosts the highest growth of all our business segments.
Through business in these segments, we cater to a wide range of customers from ordinary households to companies, covering low and high-voltage requirements. When providing total energy solutions, we propose ways to improve operational efficiency, improve facilities, lower procurement cost.
The power-related business environment is undergoing immense change in line with an increasing number of contracts under Japan’s feed-in tariff (FIT). These contracts are set to expire and the energy companies that are working to create virtual power plants (VPP) will evolve. Against this backdrop, we view the growing number of expiring FIT contracts as the next opportunity for growth during these times. To take advantage of the end of the FIT program, we intend to boost sales by proposing storage batteries to meet the likely increase in demand and to participate in demonstration projects for VPP.
We’ll continue to focuses on differentiating our business from the competition by making the most of our strengths, especially our extensive customer base and the high degree of satisfaction among our customers. By differentiating ourselves in this way, we believe we can more readily market our offerings and bolster our ability to make a profit. Regarding our earnings structure, to strengthen our revenue base we will increase the ratio of recurring revenue income to operating income to over 80%. In addition, we aim to drive further growth by deepening ties with customers to maximize lifetime value.
Gremz Group will continue responding quickly and flexibly to the changing times and will strive to meet the expectations of our stakeholders based on our corporate philosophy of “Filling the world with inspiration and joy.” We ask for your further understanding and support as we work toward our goals.
Chief Executive Officer