Results Presentation for Fiscal Year
Ended August 31, 2021
October 20, 2021

© 2021 WEST HOLDINGS Co.

Contents■ Company Profile■ Overview of Results in Fiscal Year

Ended August 31, 2021
■ Forecasts for Fiscal Year Ending

August 31, 2022, Medium-Term
Management Plan

© 2021 WEST HOLDINGS Co.

2

Purpose of the West Group■ Corporate Philosophy
All people working at the West Group must be well off andhappy.
To that end, the Group will always be changing, believing in
infinite possibilities. The Group will promote employees'
happiness and seek the development and prosperity of theCompany through work that will satisfy customers.
The West Group will continue to create new businesses
through constant change and creation, based on its corporate
philosophy, which has not changed since its founding.
■ Vision"We will promote renewable energy, primarily solar power
generation, and energy saving to contribute to achieving adecarbonized society that does not depend on fossil fuels."© 2021 WEST HOLDINGS Co.

3

History of the West Group
Holding company

Major operating subsidiaries[100%]- Operating solar power plants that it owns
- Planning, designing, selling and building mega solar
facilities for industrial use[100%]- System integration for smart grid products[100%]- Improving the operation of solar power plants (operation)- Maintenance, management and monitoring of solar
power plants (maintenance)

・ Management strategies for the Group・ Supervision of management of the Group・ Financial management for the Group[100%]- Electricity retailing- Consulting about energy products, including electricity[49%]- Energy solutions and services in ASEAN countries,
primarily Thailand[100%]- Purchase and wholesale of renewable energy- Inspection of solar panels etc. using drones, cultivationof human resources that can use drones*: Percentages are West Holding's shareholding.

© 2021 WEST HOLDINGS Co.

4*

History of the West Group■ The West Group makes changes promptly in response to the changes of the times.
■ The West Group always "creates changes."
1981
1985
1993
1995
2005
2011
Construction materials
trading company

Nishi-Nihon Kanesho
founded in Hiroshima

Japan's No. 1 in roofing
tiles installation

Rooftop tiles department
established
Receives an order for the
repairing of the rooftop tilesof the tower of Hiroshima
Castle damaged by theGeiyo earthquake in 2002

Evaluation of the seismic
capacity of concrete structuresand related repairs

Planning of houses andsale of themStarts evaluation of the seismic
capacity of buildings andrelated repairing
Buildings restoration work after
the Great Hanshin Awaji
Earthquake

Plans Honebuto Jutaku
houses and starts the sale ofthem

Forms an alliance with
Yamada Denki

Broadcasts TV commercials
nationwide, employing
actress Kiki Kirin

Creates renovation shops instoresAll-electric homes, solar
power generation

2014

2015

2016

2018

Mega solar power

Electricity retailingbusiness

Energy saving business

Overseas (Asia) business

Environmental value
creation company

West Esco service, anenergy saving service, starts

A subsidiary established in
ThailandDevelops the solar powerbusiness and the energy
saving business in ASEAN
countries

West Electric Powerestablished
Receives approval as a
general electricity utility

Starts the planning,development and building of
high-voltage solar power
plants(Buildings restored)
Hyogo prefectural officebuilding, Kobe municipal
government office building,
Sogo department store, etc.

2012
Starts the planning,development and building ofmega solar plants

Medium-sized solar power
facilities

Participates in the J-Credit
SchemeFrom 2021
To the post-FIT
world
Japan's largest fablessrenewable energy
power company© 2021 WEST HOLDINGS Co.

5

The West Group's Strategy■ Renewable energy market conditions are favorable.
■ The position of solar power plants in Japan is changing.
IssuesIncreasing environmental awareness
Paris Agreement

2050 carbon neutrality

End of the FIT
schemeSecuring land for
non-FIT power plants

ESG investment

RE100

Rapidly increasing
demand for green
electricity

Maintenance

From solar power plants as investment products
to solar power plants for decarbonization© 2021 WEST HOLDINGS Co.

6

The West Group's Strategy■ Aiming to become Japan's largest fabless renewable energy power company
 Securing renewable energy power sources without increasing assets
 Pursuing non-recurring revenue and recurring revenue at the same timePower generation
business operators(Self-consumption, PPA)

Revitalization of mega solar facilities
Renewableenergy powersources after FIT
Enhancing value

O&M

In-house power generation

Renewable energy fund
General operating company

● ● ●

West
Electricity
retailer

EPC
Wholesale ofmaterials

EPC

West FIT• Development by communitybased agencies• Information from partner financial
institutions• Using 284,000 ha of desolate
farmlandInvestor

Electricity

AgencyElectricity
retailing

Consumerofelectricity

Green electricity

O&M

Securing construction sites

Supplier

Electricity

West FIT(MW)

Total power capacity

Aug. 2021 Aug. 2022 Aug. 2023 Aug. 2024
West FIT

11.1

112.3

297.5

398.3

Mega solar
power

576.1

709.0

784.0

818.0

Subtotal

587.2

821.3

1,081.5

1,216.3

Selfconsumption

44.1

187.0

353.7

550.0

PPA

1.7

5.1

15.2

37.2

小計

45.8

192.1

368.9

587.2

Total

633.0

1,013.4

1,450.4

1,803.5© 2021 WEST HOLDINGS Co.

7

Position of the West Group■ Renewable energy platformer■ Cooperating with a large number of financial institutions and other organizations
Business Scheme
Sale of electricity

Generaloperatingcompany

Electricity retailer

Consumer ofelectricity

Local governments

114 local
governments

Financial
institutions

84

Accounting firms

9
6,300
customers

Number of
construction
companies andbuilders

135

Number of JAs

31

Green electricity
wholesaling
Sale of electricity

Local
governments

West Group
Placing orders

Contractor

Information

Partner financial
institution

MS
revitalization

EPC

Electricity

AgencyElectricity power
generationcompany© 2021 WEST HOLDINGS Co.

8

Overview of Segments■ Integration of planning, construction, cooperation, O&M, and renewal■ Comprehensive cross-selling proposals to customers
Non-recurring revenue business

Renewable Energy Business

Recurring revenue businessElectricity PowerBusiness

Energy Saving
Business

Maintenance Business■West Esco

■O&M

Mega solar power■Development, sale
■Revitalization

Solar power for industry use■Self-consumption

West FIT■Electricity
retailing■Greenelectricity
wholesaling■Electricity
generationand sale LED
 Air conditioning ecoCloud(Refrigerators,
freezers thermal
management
system)■Drones■PPA■West Group■West FIT agency© 2021 WEST HOLDINGS Co.

9

Contents■ Company Profile■ Overview of Results in Fiscal Year

Ended August 31, 2021
■ Forecasts for Fiscal Year Ending

August 31, 2022, Medium-Term
Management Plan

© 2021 WEST HOLDINGS Co.

10

Overview of Results in Fiscal Year
Ended August 31, 2021
Aug. 2019

Aug. 2020

Results

Results

Aug. 2021
Initial plan

(Million yen)
Results

Year on year

63,904

61,94780,55367,938109.7%

Renewable Energy Business

24,57828,09443,31431,546112.3%

Energy Saving Business

1,641

1,972

2,473

2,361

119.7%

Electricity Retailing Business

34,03528,07730,70027,800

99.0%

2,708

2,689

2,700

2,481

92.3%

938

1,113

1,366

1,463

131.4%

Other

2

0

-

-

-

Operating profit

5,864

7,180

8,136

10,148141.3%(Operating profit margin)

9.18%

11.59%

10.10%

14.94%

128.9%

Ordinary profit

5,425

6,615

7,456

9,648

145.9%

Profit attributable to owners of parent

3,633

4,417

4,847

6,495

147.0%

Total sales at West GroupElectricity Generation and Sale
Business
Electricity Generation and Sale
Business

Net sales in the past three years (Million Yen)
80,00070,00063,904

61,94767,938Gross profit in the past three years (Million Yen)
18,00014,00060,000

16,10016,00012,425

13,270Recurring
revenue business

12,00050,00010,000Electricity
retailing

40,0008,000
30,0006,000

20,0004,000

10,0002,000

Non-recurring
revenue business

Other

0

0

2019

2019年8月期

20202020年8月期

2021

2021年8月期

2019年8月期

20192020年8月期

20202021年8月期

2021© 2021 WEST HOLDINGS Co.

11

Renewable Energy Business Mega solar power■ Sold 10 facilities, whose capacity is 34.4 MW (on a par with the initial plan).
Development,
Sale■ Demand for environmental response increased. Sales prices were favorable.
■ Sold to a revitalization investment fund (1 facility, 8.5 billion yen).
■ Sold 31 facilities, whose capacity is 31.4 MW.

Regeneration■ Sold to a revitalization investment fund (bulk sale; 11 facilities, 3.8 billion yen).

Sales(Million yen)

Capacity sold

Mega solar development and sales performancein fiscal year ended August 31, 2021

14,000(Photos of mega solar panels sold by the Company)(MW)
12,634 40

8,616

12,00035

34.4
10,000

24.72

30
25

8,000

(Million yen)

20

1,450
6,000

1,890

15

677

4,000

10

4.2

2,000

0

Q1
1Q

2.13

Q2
2Q

3.32
5

Q3
3Q

Q4
4Q

Total
合計

0

Annual sales

Plan

Results

Development,
Sale

10,00012,634

Regeneration

15,00010,276© 2021 WEST HOLDINGS Co.

12

Renewable Energy Business Solar power for industry use

Self-Consumption, West FIT■ Sales fell short of the initial plan.
The posting of sales of approximately 2.0 billion yen is postponed to the next fiscal
year due to a change in the construction plan.
■ Orders have been firm. Rooftop solar panels are for self-consumption, and solar panels
in fields are for West FIT.
Up to 2019

2020

2021

FIT facilities
Sales(Million yen)Self-consumption, West FIT

Capacity sold
Sales from facilities completed in fiscal year
ended August 31, 2021

(Photos of facilities completed by the Company)

(MW)

9,000

70
8,343

8,000

61.69

60

7,000
50
6,000

5,399

40

5,000
4,000
3,000

(Million yen)

40.66
30
2,944

21.03

2,000

10

1,000
0

1st
half
上期

AnnualPlan

Results

Sales

12,450

8,343

20

2nd
half
下期

Total
合計

0

© 2021 WEST HOLDINGS Co.

13

Energy Saving Business, Maintenance Business
Energy Saving■ Orders have been steady since the start of the service. Split sales have increased.
Trends in sales and asset balance since the start of the service(Million yen)

Fiscal year

Aug. 2017

Aug. 2018

Aug. 2019

Aug. 2020

Aug. 2021

Sales

689

1,232

1,641

1,972

2,289

Asset
balance

3,146

4,191

4,798

4,995

4,623

Maintenance (O&M)■ Synergies with the mega solar regeneration business made significant contributions.
(Million yen)Aug. 2020

Aug. 2021

Sales

1,113

1,495

MW undercontract

518.1

591.0

(Photos of maintenance by the Company)© 2021 WEST HOLDINGS Co.

14

Electricity Power BusinessElectricity retailing■ Power consumption at corporate customers declined due to COVID-19.
■ The number of contracts increased steadily through referrals by partner
financial institutions.
Quarterly sales(Million yen)

Fiscal year

Aug. 2020

Aug. 2021

Quarter

1Q

2Q

3Q

4Q

Annual

1Q

2Q

3Q

4Q

Annual

Sales

7,443

7,349

6,200

7,085

28,077

6,198

6,716

6,522

8,205

27,641Gross profit

281

230

436

729

1,676

357

329

577

1,103

2,366

Breakdown of contracts in in two fiscal years
Fiscal year

Aug. 2020

Aug. 2021

Number ofcontracts

20,14931,743

BreakdownHigh voltage

Low voltage

High voltage

Low voltage

7,287

12,862

7,940

23,803

Electricity Generation and Sale
■ The Company owns 56 mega solar power plants (58 MW) as of August 31, 2021.
■ The Company sells electricity power under the FIT scheme, and revenue fromthe sale was roughly on a par with the initial plan.
© 2021 WEST HOLDINGS Co.

15

Contents■ Company Profile■ Overview of Results in Fiscal Year

Ended August 31, 2021
■ Forecasts for Fiscal Year Ending

August 31, 2022, Medium-Term
Management Plan

© 2021 WEST HOLDINGS Co.

16

Results Forecast for Fiscal YearEnding Aug. 2022
Revitalization of mega solar facilities
For industrial use (self-consumption)
West FIT (West, agencies)
Fiscal year
ended August
2021
Results
Annual
67,93834,2492,289
27,800

Sales in previous year
10,276
8,513
123

Sales this year
20,00021,500
9,981

Fiscal year ended
August 2022

Million yen(Million yen)

1st half
37,907
19,016
1,056
15,522

Forecast
2nd half
53,33933,964
1,095
15,623

Annual
91,25052,981
2,151
31,145

Year on year
Annual134.3%
154.7%
94.0%
112.0%

2,409

955

1,299

2,255

93.6%

Maintenance Business
Other
Operating profit(Operating profit margin)
Ordinary profit

1,495
10,14814.94%
9,648

744
614
3,978
10.49%
3,628

770
588
7,693
14.42%
7,343

1,514
1,204
11,67212.79%
10,972101.3%
37.2%
115.0%
85.6%
113.7%

Profit attributable to owners ofparent

6,495

2,358

4,773

7,132

109.8%

Total sales at West Group
Renewable Energy Business
Energy Saving BusinessElectricity Retailing BusinessElectricity Generation andSale Business© 2021 WEST HOLDINGS Co.

17

Medium-Term Outlook(Million yen)

Total sales at West Group
Renewable Energy Business
Mega solar business■ Development and sale
■ Revitalization
Solar power contracts for industrial use■ Self-consumption, EPC■ West FIT■ West FIT agencies
Energy saving business■ West Esco, Mirakuru■ PPA
Electricity business■Electricity retailing (West Electric Power)■Electricity wholesaling (West Green Power)■Electricity generation and sale
Maintenance Business
Other
Operating profit(Operating profit margin)
Ordinary profit
Profit attributable to owners of parent

Aug. 2022
91,25052,981
21,5001,500
20,00031,481
21,500
3,325
6,656
2,151
2,123
28
33,40030,600
545
2,255
1,514
1,204
11,67212.79%
10,972
7,132

Aug. 2023
115,055
70,14018,7008,700
10,00051,44025,0008,440
18,000
2,219
2,139
80
39,39332,500
2,512
4,381
1,785
1,518
15,45713.43%
14,657
9,527

Aug. 2024
135,076
85,12020,270270
20,00064,85029,45013,40022,000
2,322
2,142
180
44,08034,400
5,322
4,358
1,826
1,728
17,01712.60%
16,117
10,476© 2021 WEST HOLDINGS Co.

18

Trends in Recurring and Non-Recurring Revenue
Trends in Sales
100,000
90,00086,84880,00071,65870,00060,00054,18550,00040,00030,000 24,580

33,833
27,88820,00034,03728,04527,80030,60032,50034,40010,000

5,287

6,014

6,305

6,465

10,897

13,8280

Non-recurring

RecurringElectricity retailing (recurring)© 2021 WEST HOLDINGS Co.

19

Trends in Recurring and Non-Recurring Revenue
Trends in Gross Profit
20,00020,00018,00018,00016,00016,00014,00014,00012,00012,00010,00010,000
8,000
8,000
6,000
6,000
4,000
2,000
4,000
0
2,000

15,65014,61812,42010,725
8,634

9,095

1,130
2,661

1,231
2,944

2,300

2,450

3,075

2,600

2,752

4,639

5,015

2,962

0

Non-recurring

RecurringElectricity retailing (recurring)© 2021 WEST HOLDINGS Co.

20

Sales and Gross Profit in West Group's
Recurring Revenue BusinessComparison with results in fiscal year ended Aug. 2021
Already achieved net sales for 1.1 years and a gross profit for 2.2 years.
(Million yen)

Net sales

Gross profit

Energy saving

13,8696,934Electricity
generation and sale

33,91813,567

O&M

26,00015,080Total

73,78735,581© 2021 WEST HOLDINGS Co.

21

Mega Solar

Development and Sale Business

Sale Plan(MW)（単位：ＭＷ）

25

21.7

20
15
10
3.4

5

2.7
0.5

0
2022年8月期
Aug. 2022

2023年8月期
Aug. 2023

2024年8月期
Aug. 2024

2025年8月
Aug.
2025

Facilities to Be Sold (Operated in Cooperation)

Sales(Million yen)Aug. 2022

Aug. 2023

Aug. 2024

1,500

8,700

270

© 2021 WEST HOLDINGS Co.

22

Mega Solar

Revitalization BusinessSupplier

West Group

Investor

Buyer
Self-consumption
customer
Renewable energy fund
(Investor)

Enhancing value
O&M

Market size: 10,721 solar power plants (0.5 MW or more, certified in or before 2017) are operating nationwide.
Hokkaido Tohoku Hokuriku

Kanto

Chubu

Kansai

Chugoku,
Kyushu Okinawa
Shikoku

Total

Power
plants

464

1,065

329

2,644

1,659

1,081

1,396

2,058

25

10,721

MW

2,750

7,733

740

11,607

9,021

9,731

3,228

8,013

59

52,882(Million yen, facility)

Aug. 2022

Aug. 2023

Aug. 2024

Sales

20,00010,00020,000

Number of facilities

35

30

49

MW

70

60

98

© 2021 WEST HOLDINGS Co.

23

Solar Power Contracts for Industrial Use(Million yen)Aug. 2022
Sales

21,500Aug. 2023
25,000Aug. 2024

Partner banks

84

Priority banks

63

Branches

7,413

Major
customers

592,000

29,450Order backlog
at beginning of
term

7,933

5,918

7,618

New orders

19,48526,70027,200Order backlog
at end of term

5,918

7,618

5,368

Broke away from the FIT scheme in FY2021.
The solar power contracting business for industrial use will specialize inself-consumption (including the sale of surplus electricity) in FY2022.

© 2021 WEST HOLDINGS Co.

24

West FIT

Solar Power for Industrial Use

Green electricity

Power generation business
operators

West FIT

Electricity
powerElectricity

West

Osaka Gas
MC Retail Energy
Tokyo Electric Power
Chugoku Electric PowerElectricity
retailers

etc…

EPC

EPC

Total W under contract
Wholesale ofmaterials

Electricity
retailingWest FIT
Agencies

Electricity
consumer

358
MW(Million yen, facility, MW)West FIT plan

Aug. 2022

Aug. 2023

Aug. 2024

West

Agency

Total

West

Agency

Total

West

Agency

Total

Sales
Number of EPC
facilities installed

3,325

6,656

9,981

8,440

18,00026,44013,40022,00035,400

416

832

1,248

1,055

2,250

3,305

1,675

2,750

4,425

Capacity of panels

41.6

83.2

124.8

105.5

225

330.5

167.5

275

442.5

© 2021 WEST HOLDINGS Co.

25

Electricity Business, Maintenance BusinessElectricity Generation and Sale
■ Acquired a very large mega solar facility.
A very large mega solar facility (60 MW) is under construction. It will be completed inAugust 2022.
The FIT rate is 36 yen.
Revenue from the sale of electricity will be posted from the fiscal year ending August 31, 2023.
(Million yen)

Sales

Aug. 2022

Aug. 2023

Aug. 2024

2,255

4,381

4,358

Maintenance (O&M) Business■ Expanding business into mega solar facilities purchased for revitalization
Changes from other companies' contracts are increasing.

(Million yen, facility)

Aug. 2022

Aug. 2023

Aug. 2024

Sales

1,514

1,785

1,826

MW under contract

591

666

700

26

© 2021 WEST HOLDINGS Co.

Energy Saving Business Refrigerators, Freezers

Thermal Management System Business■ Optimizing the management of refrigerators and freezers by collectively controlling them
■ Reducing fixed cost through energy saving and labor saving
Patent pending
Optimizing refrigeration and freezing efficiency while
reducing basic electricity rates and electricity usage fees

EnergysavingChecking inside temperature anywhere, anytime, 24 hours a day
Monitoring
equipment andtemperature

Monitoring freezer equipment, monitoring inside temperature, dealing with equipment of multiple
manufacturers, storing temperature data (outputting a CSV file), sending e-mails in emergency
situations (multiple e-mail addresses can be registered), detecting abnormalities in seconds

Temperature inside freezer: Set at -23ºC (starting to work at -21ºC and stopping at -25ºC; if thetemperature should be -24ºC or above)

-20ºC
-21ºC

Safe automatic control keeping temperature

Demandmonitoring-22ºC

Automatic demand control, automatic recovery after control, controlling freezer temperature, cyclic control, safetycontrol prioritizing temperature, energy saving even when electric power is not close to maximum demandPower consumption
during normal operation-23ºC

Optimizing theoperation of
the freezer-24ºC Normal operation

Making data visible and improving energy saving effectively
Visualization

When controlled by ecoCloud

Making demand visible, power consumption for each freezer, making inside temperature visible, monthly reporting,outputting CSV files, analysis through visualization

Energy saving-25ºC Note: Operation does not stopat -25ºC, and there is surplus.

-26ºC
Power consumption
when controlled

Basic configuration
A unique LTE line is used for Internet communication
between the main device and the serverWhencontrolled
Main device(Parent unit)

Electricity meter(Radio repeater)
Demand pulse unit

Normaloperation

Compressor isoperatingCompressor stops

Compressor is operating

Compressor
is operating
Compressor stops

Controlling the compressor,
which use 80% to 90% of
the power consumption ofrefrigerators and freezers

Keeping inside temperature, while observing the procedure so as not to damage the compressor
・The use of a radio repeater is determined by the radio wave condition.
・The parent unit and the child unit can be connected by wire.
Temperature sensor
for measuringoutside temperature(Radio repeater)

Accessible via a browser of a smartphone,tablet, or PC, etc.

LaborsavingAutomating temperature recording and reducing unproductive
personnel expenses (changing the way of working)Controller(child device)

Communication specification legend

Inside freezer
or refrigerator

Internet communication

Wireless communication (920 MHz)

Motor control board,etc.

Data are stored
in the cloud(three years)
Handwritten
temperature ledger

CSV output

Data retrieval

Temperature sensor

Wired connection(placed close to the existing temperature sensor)

Complying with HACCP, which became mandatory in June 2020

Freezer27© 2021 WEST HOLDINGS Co.

Energy Saving Business

PPA for Battery Storage for Local Governments■ Components of the product: One to three PCSs and a storage battery■ No initial cost, the same electricity rate, no effort; achieving CO2 reduction and BCP
Electric Power Supply and Demand in a Self-Consumption System at Mitsuyanosato Akitakata
Downwardtransformation

Solarpanels
panelsSolar

Powerconditioner
conditioner
Power72.42 kW

50 kW

CubicleFlow of electricity

Lighting(Information building, restaurant
building)
Hours during which electricity isavailable in case of power outage

Normal operation
West sells electricity generated from solar panelsand electricity stored in the battery at the samerate as that of The Chugoku Electric Power. If
power is not sufficient, West buys it from electric
power companies.

58 hours*1
Air conditioning

In case of
a power outage

West sells electricity generated from solar panelsand electricity store in the battery.
During the night, electricity from the battery isavailable.

Power system(Information building, restaurant
building)
Hours during which electricity isavailable in case of power outage

Battery

159 kWh/EMS

16.6 hours*2*1 If electricity is supplied only from the battery. The battery is assumed to be fully charged. (The kitchen is excluded.)*2 If electricity is supplied only from the battery. Electricity is assumed to be used only in the space of customer seats and aisles in the restaurant building and in the office anddisplay space in the information building.

© 2021 WEST HOLDINGS Co.

28

Note

This material is prepared for providing information primarily about the Group and is not intended tosolicit investment, in Japan or overseas, in shares or other securities issued by West Holdings
Corporation.

The information included in this material about the industry, market trends, or economic conditions,etc. is provided based on information available at the time of publication of this material. West
Holdings Corporation does not guarantee the veracity, accuracy, rationality, or completeness of theinformation. The Company does not assume any responsibility for updating the information.
The forward-looking statements included in this material, such as plans, projections, estimates,
predictions, and forecasts, are nothing more than judgments or ideas of the Company at the timeof publication. The Group's operating results, financial position and other results included in thismaterial and their implications may be significantly different from actual results, depending onenergy policies, laws and regulations, systems, market trends, the status of approvals andlicenses needed for the Group's operations, the success or failure of acquisition or development ofland or power generation facilities, etc., and changes in weather, climate and the environment,
etc., among other factors, in Japan and overseas.
In principle, the amounts included in this material are consolidated amounts and rounded down to
the nearest million yen. As a result, the sum of amounts may be different from the "total" amount.

© 2021 WEST HOLDINGS Co.

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