TSE Code：3150

Energy Solutions Company

Supplementary Material Q1 FY 03/2025
gremz, Inc. (TSE Code: 3150)
August 9, 2024

https://www.gremz.co.jp/en/
Copyright© gremz, Inc All Rights Reserved

Energy Solutions Company

Q1 FY 03/2025 Financial Results

Copyright© gremz, Inc All Rights Reserved2Consolidated Financial Highlights (YoY Comparison)(Million yen)

Q1 FY 03/2024 (Result)

Q1 FY 03/2025 (Result)

ResultResultProfit margin (%)

Net sales

7,507

Operating profit

1,863

24.8%

1,663

Ordinary profit

1,886

25.1%

Profit attributable toowners of parent

1,277

17.0%

Profit margin (%)

7,653

YoY change
ChangeChange (%)

+145

+1.9%

21.7%

-200

-10.7%

1,709

22.3%

-176

-9.4%

1,155

15.1%

-121

-9.5%



Net sales rose 145 million yen or 1.9%, following an increase in net sales of the Energy Cost Solutions (ECS)Business of 15.9% year on year.

Operating profit dropped 200 million yen, or 10.7%. This reflects a decline of 323 million yen year on year in the fuelcost adjustment amount in the Electricity Retailing (ER) Business following a fall in the electric power market price,which is a special factor in the first quarter only.
(The reason for the profit fall in the ER Business is discussed on page 6.)In each segment, net sales and operating profit were higher than their respective forecast levels. (Consolidated
Operating profit achieved 25.6% of the full year forecast.)
Copyright© gremz, Inc All Rights Reserved3Consolidated Financial Highlights (YoY Comparison)
Q1 FY 03/2024 (Result)(Million yen)

Results

Q1 FY 03/2025 (Result)% SalesResults

YoY change% Sales

Change% Change

7,507

100.0%

7,653

100.0%

+145

+1.9%

ECS Business

2,222

29.6%

2,574

33.6%

+352

+15.9%SHP Business

1,292

17.2%

1,140

14.9%

-151

-11.8%ER Business

3,993

53.2%

3,938

51.5%

-55

-1.4%

2,834

37.7%

2,816

36.8%

-17

-0.6%

ECS Business

1,344

60.5%

1,560

60.8%

+216

+16.1%SHP Business

580

44.9%

458

40.2%

-121

-20.9%ER Business

909

22.8%

797

20.2%

-111

-12.3%

1,863

24.8%

1,663

21.7%

-200

-10.7%ECS Business

976

43.9%

1,138

44.2%

+162

+16.7%SHP Business

271

21.0%

142

12.5%

-129

-47.7%ER Business

788

19.8%

652

16.6%

-136

-17.3%

Administrative expenses

-173

-

-270

-

-96

-

Ordinary profit

1,886

25.1%

1,709

22.3%

-176

-9.4%

Profit

1,277

17.0%

1,155

15.1%

-121

-9.5%

Net sales

Gross profit

Operating profit*ECS Business (Energy Cost Solutions Business): GR consulting, Inc., gremz energy, Inc., gremz power, Inc., gremz solar, Inc.
*SHP Business (Smart House Project Business): gremz solar, Inc.
Copyright© gremz, Inc All Rights Reserved*Electricity Retailing Business: gremz power, Inc.

4

Segment Performance Highlights (Net Sales and Operating Profit)(Million yen)

Factors for Changes in Net Sales (YoY)(Million yen)

Factors for Changes in Operating Profit (YoY)

Photo-voltaic systems for business use: +428
Electric circuit breakers and IoT devices: -112
Energy-efficient appliances:-106

Photo-voltaic systems for business use: +658
Electric circuit breakers and IoT devices: -152
Energy-efficient appliances:
-167

+162

Electricity retailing: -55-129

Electricity retailing: -136

-136
-96

+352

-151

-55
Storage batteries & photo-voltaic systems,etc.: -129

Storage batteries and photo-voltaic systems,etc.: -151

1,863

Net sales
Q1 FY 03/2024(Result)

1,663

7,653

7,507

ECS Business

SHP Business

ER BusinessNet sales
Q1 FY 03/2025(Result)

Operating profit
Q1 FY 03/2024(Result)

ECS Business

SHP Business

ER Business

Administrative

Operating profit
Q1 FY 03/2025(Result)

Copyright© gremz, Inc All Rights Reserved
5

YoY Difference in ER Business
The fuel cost adjustment amount is posted as net sales for each month. Since it is calculated on the basis of
the fuel price in the trade statistics three to five months earlier, there is a time-based disparity.

This disparity in fuel cost adjustment amount had an effect of achieving higher profit for the first quarter ofthe previous fiscal year by 323 million yen (special factor in Q1 only) than in the same period of the current
fiscal year. As a result, operating profit was down 136 million yen, but it was higher than forecasted.
Period for calculation of fuel cost adjustment amount (as part of net

燃料調整費（売上の一部）の算定期間と電気料金への反映時期
sales) and timing of reflection in electric power rates
12月
Dec

1月
Jan

2月
Feb

3月
Mar

4月
Apr

5月
May

6月
Jun

40
35

12

Fuel price in trade statistics for
11～1月の燃料貿易統計価格
Nov.-Jan.

JEPX
Yen/kWh (including tax)

14

4月分
Electricity

10

bill
for April
電気料金

8

Fuel cost adjustment
amount stabilizes later.

30
25
20

6
Fuel price in trade statistics for
12～2月の燃料貿易統計価格
Dec.-Feb.

5月分
Electricity

4bill
for May
電気料金

15

JEPX stabilizes
earlier.

10
Effect ofincreasing profit
323 million yen

2

5

1Q FY03/2024
燃料調整費（売上の一部）
Fuel adjustment amount (as part of net sales)

Jun 2024
2024年6月

May 2024
2024年5月

Apr 2024
2024年4月

Mar 2024
2024年3月

Feb 2024
2024年2月

Jan 2024
2024年1月

Dec 2023
2023年12月

Nov 2023
2023年11月

Oct 2023
2023年10月

Sep 2023
2023年9月

Aug 2023
2023年8月

Jul 2023
2023年7月

May 2023
2023年5月

Apr 2023
2023年4月

Mar 2023
2023年3月

Feb 2023
2023年2月

Jan 2023
2023年1月

Dec 2022
2022年12月

Nov 2022
2022年11月

Oct 2022
2022年10月

Sep 2022
2022年9月

bill
for June
電気料金

2022年8月
Aug 2022

Fuel price in trade statistics for
1～3月の燃料貿易統計価格
Jan.-Mar.

0
Jul 2022
2022年7月

0

6月分Electricity

Jun 2023
2023年6月

11月
Nov

Trends in fuel adjustment amount and JEPX
in the area served by TEPCO Power Grid

Fuel adjustment amount
Yen/kWh (including tax)

1Q FY03/2025
JEPXスポット平均（原価の一部）
JEPX average spot price (as part of cost)

Copyright© gremz, Inc All Rights Reserved
6Balance SheetWith the equity ratio of 62.4%, gremz continues maintaining a good financial position.

(Million yen)

End of Mar. 2024

End of Jun. 2024

ChangeMain factors
-274
+46
+48

Current assets

16,913

16,766-147

Merchandise
Accounts receivable – trade
Consumption taxes refund

Non-current assets

4.698

4,594

-104

Deferred tax assets-166

21,612

21,361-251

Current liabilities

5,810

5,199

-611

Income taxes payable-684

Non-current liabilities

2,810

2,749

-61

Long-term borrowings-69

Total liabilities

8,620

7,948

-672

Total net assets

12,991

13,413+421

Total liabilities and net
assets21,612

21,361-251

Total assets

Comprehensive income
Dividend on retained
earnings+1,154-739

Copyright© gremz, Inc All Rights Reserved
7

Energy Solutions Company

Financial Results andDividend Forecast for FY03/2025

Copyright© gremz, Inc All Rights Reserved

8Results Forecast for FY 03/2025
 ECS Business
Expected to drive growth in FY 03/2025, primarily through the installation of photovoltaic systems on theroof of factories and other facilities, allowing SMEs to use the electricity generated (self-consumption)
thereby reducing their energy bill. Within this scope, gremz seeks to differentiate itself from otherindustry players by focusing on SMEs as our core target market segment. We also have plans to growcross-selling with storage batteries, allowing clients to store for future use surplus energy exceeding
on-site consumption requirements.

 SHP Business
Families no longer eligible for the FIT program present a significant potential demand source when it
comes to the installation of storage batteries for household use. We expect stable results in thisbusiness, over the foreseeable future.

 Electricity Retailing Business
Through to the end of FY 03/2024, gremz worked in earnest to put in place a business model allowing
us to hedge procurement risks. We now have a business model allowing us to avoid negative spread
margins and capable of delivering stable profits. Futures prices have also been stable starting with the
beginning of LFY, so in FY 03/2025, we will work to grow our business by increasing the number ofcontracts. (58,000 at the start of FY → 63,000 at EoFY) Company-wide Results
Carry out active investment in personnel, together with the expansion of the ECS Business and stable
growth in the ER Business. Through these, we expect to break a new operating profit record. Operating
profit for Q1 achieved 25.6％ of the full-year forecast.
Copyright© gremz, Inc All Rights Reserved

9Results Forecast for FY 03/2025
2Q FY 03/2025(Forecast)

1Q FY 03/2025(Realized)(Millions of yen)

Results% Sales

１Q
progress(% of thefull year
forecast）

FY 03/2025 (Forecast)(Announced 5/15/2024)（Announced 5/15/2024)

Results

Results% Sales% Sales

FY 03/2024(Realized)
Results% Sales

7,653

100.0％

16,500100.0％

34,000100.0％

22.5％

29,908100.0%ECS Business

2,574

33.6％

5,311

32.2％

10,906

32.1％

23.6％

7,734

25.9%

SHP Business

1,140

14.9％

2,183

13.2％

4,310

12.7％

26.5％

4,440

14.8%

ER Business

3,938

51.5％

9,005

54.6％

18,783

55.2％

21.0％

17,733

59.3%

2,816

36.8％

5,550

33.6％

11,200

32.9％

25.1％

9,257

31.0%

ECS Business

1,560

60.8％

3,241

61.0％

6,654

61.0％

23.4％

4,645

60.1%

SHP Business

458

40.2％

910

41.7％

1,803

41.8％

25.4％

1,845

41.6%

ER Business

797

20.2％

1,398

15.5％

2,742

14.6％

29.1％

2,766

15.6%

1,663

21.7％

3,250

19.7％

6,500

19.1％

25.6％

5,217

17.4%

ECS Business

1,138

44.2％

2,266

42.7％

4,575

42.0％

24.9％

3,030

39.2%

SHP Business

142

12.5％

283

13.0％

575

13.4％

24.7％

587

13.2%

ER Business

652

16.6％

1,107

12.3％

2,082

11.1％

31.3％

2,267

12.8%

▲270

-

▲407

-

▲733

-

▲668

-

Ordinary Profit

1,709

22.3％

3,304

20.0％

6,570

19.3％

26.0％

5,268

17.6%

Profit

1,155

15.1％

2,190

13.3％

4,320

12.7％

26.7％

3,540

11.8%

Net Sales

Gross Profit

Operating Profit

Administrative Ex.

*ECS Business (Energy Cost Solutions Business): GR consulting, Inc., gremz energy, Inc., gremz power, Inc., gremz solar, Inc.
*SHP Business (Smart House Project Business): gremz solar, Inc.
Copyright© gremz, Inc All Rights Reserved*Electricity Retailing Business: gremz power, Inc.

10

ECS BusinessFor business use
Consulting services to lower
clients’ electricity bill & the saleof energy-efficient appliances

For business use
Sale of photo-voltaic systems
for business use, IoT devices,and energy-efficient appliances

Segment OP

Segment OP

3.0B yen

4.5B yen

FY 03/2024 (Realized)

FY 03/2025 (Forecast)

Total solutions to improve operational efficiency, facilities & lower procurement cost of electricity
Improve operational efficiency

Improve facilities

Allows clients to lower their base electricity fee byreviewing electricity use & contract details.

Lower electricity usage fees by migrating clients’facilities into facilities with better energy-saving effects.

IoT devices
Remotely monitor electricity
consumption via IoT sensors.

Photo-voltaic systems for business use
Reduce electricity costs by installing photo-voltaic
systems on factory roofs, etc., and consuming theelectricity generated.

Electronic circuit breakers

LED illumination

Concentrate resources

Coupled with a contract review,the introduction of ECBs allows forthe stable operation of machinery
equipment and for clients tolower the cost of electricity.

Lower electricity consumption; productlifespan approximately 4x that offluorescent lamps.
A/C units (business use) / Transformers /Energy-efficient appliances
Copyright© gremz, Inc All Rights Reserved

11Reasons for Growth in gremz’ ECS BusinessElectricity bills have been on a steady trend up since the 2011 Tōhoku Earthquake, and thegreater the economic benefits to our clients from the introduction of photo-voltaic systems.
(JPY/kWh)Electricity bills havebeen on a steadytrend up since the2011 Tōhoku
Earthquake

35.00
30.00
25.00
20.00
15.00

21.39
14.33

22.32
15.32

23.44

Return to an uptrend
following a dip due to a
decline in crude oil prices

25.53

16.50

18.38

27.49

26.02

20.31

18.93

24.31
17.47

27.23

27.44

18.45

19.34

19.26

2017

2018

2019

25.73

25.82

17.76

28.09

19.28

Low-voltage Metered
Lighting Average
Price

34.00

High-voltage Average
Price

27.55

Low-voltage: Prices are UP
approx. 59% vs FY. 2010
High-voltage: Prices are
UP approx. 92% vs FY 2010

10.00
2010

2011

2012

2013

2014

2015

2016

2020

2021

 Electricity bills for competitors’ target client group (high-voltage)
TEPCO Energy Partner, Inc. High-voltage Plan A (As of May 2024)

 Electricity bills for gremz target client group (low-voltage)
TEPCO Energy Partner, Inc. Metered Lighting Plans B & C (As of May 2024)

Unit

Price (Incl. tax)kVA

1,390.87 yen

SummerkWh20.41 yen

Other

kWh

19.28 yen

Fuel adjustment amount

kWh

Variable month/month

Renewable energy surcharge

kWh3.49 yen

Unit

Price (Incl. tax)kVA

311.75 yen

Base electricity fee～120kWhkWh

29.80 yen120～300kWh

kWh

36.40 yen

Electricity
usage

300kWh～kWh40.49 yen

Fuel adjustment amount

kWh

Variable month/month

Renewable energy surcharge

kWh3.49 yen

Base electricity fee
Electricity
usage

Economic benefits

Larger2022 (FY)

SmallerIntroducing photo-voltaic systems allows clients to generate electricity for 10 – 15 yen/kWh, as opposed to purchasing it for the prices shown in the table.
gremz targets clients with low-voltage requirements, which see large economic benefits from photo-voltaic systems, so client satisfaction is therefore high.

Copyright© gremz, Inc All Rights Reserved

Source: JAPAN‘S ENERGY 2022 Edition - 10 questions for understanding the current energy situation (Agency for National Resources and Energy）(https://www.enecho.meti.go.jp/en/category/brochures/pdf/japan_energy_2023.pdf#page=4) – Presented here with formatting and stylistic changes

12Profit Structure: Photo-voltaic Systems for Business Use
Integrated oversight covering the procurement of equipment and construction orders.
In addition to our own proprietary sales efforts, our sales capabilities also include clientreferrals from gremz alliance partners and finance proposals leveraging credit companies.
These allow us to execute a business model with high client satisfaction.

Cost
competitiveness

Client referrals
Commissions paid

Suppliers
gremz
Manufacturers

Sales
capabilities

Purchase

Sales

Payment【Uncover latent demand】
Telemarketing followed
by in-person visitations

Network ofconstruction
companies
Lump-sum payment

CreditCompanies

Benefits toclients

Alliance
partners

Alliance partners’ clients

New gremz clients

Existing gremz clients

Installment payments ＜ Electricity bill savings
Payment in installments

Copyright© gremz, Inc All Rights Reserved

13Stable Recurring Revenue in the ER Business Risk-hedging measures in Phase 1 to 3 have already been implemented for the low-voltage service. The
high voltage service specializes in market-linkage plan contracts.
 Aim for stable growth through increase in contract numbers this FY and beyond.
Voltage typeLow voltage

High voltage

Break-even power supply procurement
price

Risk-hedging measures

Phase 1

Acquired a high-quality client base, i.e., with base electricity
fees accounting for a large share of the overall electric billand boasting comparatively higher unit prices.
(FY 03/2024 load factor* average of 9.0%)

Phase 2

Applied a proprietary cost adjustment system to all clients,
consisting of the cost passthrough of a portionof the procurement costs from wholesale exchanges.

(Prop. cost adj.: approx. 22.5 yen/kWh）Phase 3

Portion of procurement risk position not covered by our
proprietary cost adjustment system (approx. 30% of lowvoltage demand) covered by 1-on-1 contract agreements.

No break-even price(Negates risk of negative spread margins)

We specialize in market-linkage plan contracts, through a system thatpasses on to clients the full wholesale market procurement costs.

Approx. 17.5 yen/kWh(w/o our proprietary cost adjustment system)

Approx. 40 yen/kWh

No break-even price(Negates risk of negative spread margins)* Load Factor: Yearly Electricity Use (kWh) ÷ (Contract Power (kW) X 24 hours X 365 days ) X 100

YoY improvement in the power supply procurement environment (see futures prices for market price forecasts)
Procurement type

FY 03/2024 (Initial)

FY 03/2024 (Realized)

FY 03/2025 (Forecast)Market price16.30 yen/kWh *1

11.50 yen/kWh13.71 yen/kWh *2

1-on-1 agreement

22.88 yen/kWh22.31 yen/kWh12.91 yen/kWh*1 Weighted average of the price of electricity on the TOCOM futures
market as of 4/25/2023, based on gremz procurement forecast.
*2 Weighted average of the price of electricity on the TOCOM futures
market as of 4/30/2024, based on gremz procurement forecast.

Copyright© gremz, Inc All Rights Reserved

14Consolidated Financial Highlights(Net Sales / Operating Profit)(Millions of yen)

Net Sales Trend

35,00031,39230,000SHP Business
ECS Business

ER Business
SHP Business
ECS Business

15,48915,00012,137

10,000

4,265
3,465
4,407

3,924
4,450

FY 03/2019

FY 03/2020

0Administrative

19,311

20,000

5,000

8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
-1,00029,90823,25225,000ER Business

34,0009,252

18,783
21,848

4,310
4,528

4,014

4,440

5,475

5,122

5,528

7,734

FY 03/2021

FY 03/2022

FY 03/2023

FY 03/2024

2,450

Net sales: 34,000 MM yen(YoY: +13.7%）

FY 03/2025(Forecast)•

Operating Profit: 6,500 MM yen

3,600

2,267

1,801

587

We expect to break new records
2,082
575

1,362
359
1,042
-657

745

456
299
1,280
-635

445
629

2,097

2,079

2,079

-486
-705

-703

-777

-668

-733

FY 03/2019

FY 03/2020

FY 03/2021

FY 03/2022

FY 03/2023

FY 03/2024

FY 03/2025(Forecast)

1,400

•

6,500
5,217

1,650

10,906(YoY: +24.6%）

Operating Profit Trend

2,106

FY 03/2025 (Forecast)

13,600

7,115
4,583

17,733

496

4,575
3,030

Copyright© gremz, Inc All Rights Reserved

15

Dividend Forecast for FY 03/2025
Starting FY 03/2024, we are aiming for a dividend payout ratio of 30%.
For FY 03/2025, we expect an interim dividend of 20 yen/share + a year-end dividend of 37 yen/share.

Dividend per share, Profit, Dividend Payout Ratio Trend (Consolidated)
34.4%

40.00%
4,320

32.9%
30.6%
28.2%

30.5%

30.00%

3,540

20.7%
19.0%

19.6%

20.0%

20.3%
2,465

35.00%

57.0

47.0

2,158

25.00%
20.00%

18.3%
15.00%
1,483

14.3%

1,120
17.0

1,001
703
505

399
2.5 154

2.5 193

2.5

4.2

6.3

8.5

19.0

22.0

12.0

10.00%
5.00%
0.00%

FY 03/2014 FY 03/2015 FY 03/2016 FY 03/2017 FY 03/2018 FY 03/2019 FY 03/2020 FY 03/2021 FY 03/2022 FY 03/2023 FY 03/2024 FY 03/2025(Forecast)
Total Dividend (JPY)
Profit (JPY MM)
Dividend Payout Ratio (%)*Dividends per share have been retroactively adjusted for the impact of stock splits of 1:2 on January 1, 2014, 1:1.5 on October 1, 2017, 1:2 on August 1, 2018, and 1:2 on September 1,
2020.
Copyright© gremz, Inc All Rights Reserved

16

Energy Solutions Company

ESG at gremz, Inc.

Copyright© gremz, Inc All Rights Reserved

17ESG at gremz, Inc.
gremz, Inc. will continue growing by offering environmentally-friendly products andservices in the domains of energy-saving solutions, energy generation, and energy
storage, and contribute to the building and sustainable development of a prosperous
and safe society.
EnvironmentContribute to the improvement of energy efficiency through the sale of advanced energy-saving products.
Contribute to building a decarbonized society through the sale of products related to renewable energies, such as photo-voltaic
systems and storage batteries.
 gremz has stated its support for Task Force on Climate-related Financial Disclosures (TCFD).

Society

We will aim to continue progressing alongside society through the provision of products and services attuned to the needs ofsociety.

GovernanceAssumed a Board of Directors structure consisting of at least 1/3 outside directors (1 female) to ensure that Company directors
execute management functions in an adequate manner. Additionally, gremz’ Compliance and Risks Management Committees
assess and manage key management challenges.

Related SDGs
Copyright© gremz, Inc All Rights Reserved18

Our Corporate Vision

Filling the World with Inspiration and Joy
In this world of constant change, we want to remain thankful for our customers’ continued support.
We want to continue building a symbiotic relationship with society.
We hope to eradicate information asymmetries and contribute to the widespread use of highvalue-added product solutions that make people’s lives safer and more comfortable.

Our Corporate Vision
Our Customers

Our Employees

Consistently deliver quality service to
our customers.

Create a positive work environment leading toa fulfilled and highly motivated workforce.

Our Shareholders

Society

Reward our shareholders with continuousand sustainable growth.

Stay on top of Social needs and offer
high value-added solutions.

Copyright© gremz, Inc All Rights Reserved

19Please direct your inquiries following number and e-mail address:
TEL 03-5769-3500
ir@gremz.co.jp(Disclaimer)This slide presentation is not an official disclosure document as defined by the Financial Instruments
and Exchange Act.

We offer no guarantee regarding the accuracy of any or all information contained herein.
This document is for information purposes only and does not constitute an offer to sell or solicit an offer
to buy any products or securities associated with gremz,Inc.
Any statements concerning the Company’s future business performance are based on information
available as of the creation of this slide presentation and are premised on certain assumptions deemed
to be reasonable by the company. As such, we reserve the right to change, without notice, any suchforecasts contained within the present document.
Copyright© gremz, Inc All Rights Reserved20