Energy Solutions Company

Company / Financial Results Presentation
gremz,Inc.
（TSE CODE：3150）

June 2024

Ticker：3150

https://www.gremz.co.jp/en/Energy Solutions Company

1.

Company Profile

2.

Business Overview

3.

Overview of FY03/2024

4.

Financial Results and Dividend Forecast for FY03/2025

5.

ESG at gremz, Inc.

2

Copyright : gremz, Inc All Rights Reserved

Energy Solutions Company

１．Company Profile

3

Copyright : gremz, Inc All Rights ReservedCompany Profile (As of March 31, 2024)
Company NameTSE Code

Representatives
Founded On
CapitalShares Outstanding
End of Fiscal Yeargremz,Inc.
3150 TSE Prime Market
President Chief Executive Officer
Masaomi Tanaka
Executive Vice President Chief Operating Officer Shinichi Nasu
July 4, 2005
708,306,000 Yen
23,814,800 shares
March 31

Employees(Consolidated)

284 (ECS Business: 162 / SHP Business: 81 / ER Business: 22 / Administrative: 19)

Headquarters

Tennoz First Tower, 2-2-4 Higashi-Shinagawa, Shinagawa-ku Tokyo, 140-0002, Japan

Consolidated
Subsidiaries

GR consulting, Inc.
gremz power, Inc.
gremz energy, Inc.
gremz solar, Inc.

4

Group History
July 2005

The company was founded with a view towards a reduction of energy costs as well as Human impact on the Environment.
Started the sale of Electronic Circuit Breakers.

July 2007

Started the sale of two fully electric appliances. (EcoCute and Induction Heating Cooking Heater)

March 2009

Listed on the JASDAQ Securities Exchange. (Currently: Tokyo Stock Exchange) (Code: 3150)

April 2010

Began the sale of photo-voltaic systems.

April 2011

Renamed the company gremz, Inc. and established it as a Holding Company.
Founded gremz solar, Inc. and GR consulting, Inc.

Dec. 2012

Founded GF lightec, Inc. (Currently gremz power, Inc.)
Began the sale of LED Illumination systems.

Dec. 2013

Carried out a comprehensive tie up with ENERES Co., Ltd.
Entered the market for energy intermediation and began the sale of energy management systems.

Sept. 2014

Announced a capital tie-up with ENERES Co., Ltd.

May 2015

gremz solar, Inc. began the operation of a solar power plant in Tsumagoi.

April 2016
May 2016
Dec. 2016

Renamed GF lightec, Inc. to gremz power, Inc. as a result of business reorganization.
Separated the segments of Energy Intermediation and Energy Management Systems from the remit of GR consulting, Inc.
gremz solar, Inc. began the operation of a solar power plant in Futokoroyama.
Started providing Electricity Retailing services for clients with low-voltage requirements.

May 2018

Started providing Electricity Retailing services for clients with high-voltage requirements.

June 2020
Nov. 2020

Changed Stock Market Listing to the Second Section of the Tokyo Stock Exchange.
Ascended to the First Section of the Tokyo Stock Exchange.

April 2022

Founded gremz energy, Inc.
Migrated to the Prime Market following the transition to the new market structure adopted by the TSE.

5

Energy Solutions Company

２．Business Overview

6

Copyright : gremz, Inc All Rights Reserved

Business Segments - Overview
Business segments are divided by target demographic (business clients or retail consumers),
and by sales category (products or electricity)

Energy Cost Solutions Business

Sale of electronic circuit
breakers, energy-efficient
appliances for business clients

Sale of photo-voltaic systems,
IoT devices, energy-efficient
appliances for business clients

Smart House Project Business

Sale of photo-voltaic systems, storage batteries, and fully-electric appliances to retail consumers;
Generation of renewable energy

Electricity Retailing BusinessElectricity retailing services for business clients with low-voltage requirements (200V; 100V) andfor business clients with high-voltage requirements (6,600V)

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Energy Solutions Company

Energy Cost Solutions Business （ECS Business） - Overview

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Copyright : gremz, Inc All Rights Reserved

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

Segment OP

Segment OP

3.0B yen

4.5B yen

FY 03/2024 (Realized)

FY 03/2025 (Forecast)

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

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.
Concentrate resources

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

IoT devices

Lower electricity consumption; productlifespan approximately 4x that offluorescent lamps.

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

A/C units (business use) / Transformers /Energy-efficient appliances

9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

23.44
21.39 22.32

15.00

14.33

15.32 16.50

2010

2011

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

25.53
18.38

27.49
20.31

26.02

24.31

25.73

27.23 27.44

18.93

17.47 18.45

19.34 19.26

2015

2016

2018

Low-voltage
MeteredLighting
Average Price

34.00
25.82
17.76

28.09 27.55 Low-voltage: Prices are UP
approx. 59% vs FY. 201019.28

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

10.00
2012

2013

2014

2017

Base electricity fee～120kWh
Electricity
usage

Price (Incl. tax)kVA

311.75 yen

kWh29.80 yen120～300kWh

kWh

300kWh～kWh40.49 yen

Fuel adjustment amount

kWh

Variable month/month

Renewable energy surcharge

kWh3.49 yen

36.40 yen

2020

2021

2022 (FY) 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

2019

Base electricity fee

Economic benefits

LargerSmaller

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

Electricity
usage

Introducing 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.
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

10Expansion of photo-voltaic systems forbusiness use market and our targeting strategy
Photo-voltaic systems for self-consumption will expand significantly in the future. We will achieve
unique growth in the low-voltage market by targeting small and medium-sized enterprises.
 Market Size of Domestic Photo-voltaic Systems(output)
MW(AC)

4500
4000
3500
3000
2500
2000
1500
1000
500
0

Output (High-voltage(>=500kW))
Output (High-voltage(50-<500kW)) Our Group's Targeting Strategy

70.0%
60.0%

Low-voltage market expected to

50.0%

grow 176% from FY2024 to FY2030

40.0%
30.0%

We believe that there are few companies that have high level of knowledge and experience inphoto-voltaic and excel in sales to small and medium-sized enterprises. Another
differentiating factor is that, due to Japanese business practices, large companies do notdirectly conduct retail sales, e.g. through agency systems. Gremz intends to promotealliances with companies that have a customer base of SMEs and little knowledge of solar
energy.
Solar knowledge
and experience (high)

20.0%
Under 50 kW
2150MW
Under 50 kW
1220MW Our Strengths
Household photo-voltaic
systems

gremz

Corporate sales forsmall and medium enterprises

Mega Solar Development

othersCorporate sales forlarge companies

10.0%
0.0%

Sales to small and medium enterprises
Uncovering latent demand(low-voltage market)
PPA for large companies
Construction orders from large
companies(high-voltage market)*The self-consumption type ratio is calculated against the total market, including electricity retailing.
Source: Prepared by processing (Fuji Keizai Co., Ltd.) “2021 Edition Photo-voltaic cell related technology: market overview and future outlook”

11

Gremz
Group

Major
competitorTarget Clients(SMEs)

Target Clients(Large companies)

Alliance
Companies

Solar knowledge
and experience (low)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
Network ofconstruction
companies

Sales
capabilities

Purchase

Sales

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

Lump-sum payment

CreditCompanies

12

Benefits toclients

Alliance
partners

Alliance partners’ clients

New gremz clients

Existing gremz clients

Installment payments ＜ Electricity bill savings
Payment in installments

Energy Solutions Company

Electricity Retailing Business （ER Business）- Overview

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Electricity Retailing BusinessBusiness Differentiation◎Business strategy

・Sales to our low-voltage electricity customer base of ≈ 56,800 in ECS business,and other prospects (other products)
Customer base ⇒ # of Customers x (Low-Voltage Power + Meter Rate Lighting) = 113,600 contracts (target)
・Supply to customers with a low Load Factor (*1) (9.0% realized in FY 03/2024)◎Our competitive advantage
・Sales to corporate customers : Unlike ordinary households, our clients make heavy use of stage 3 energy amount rates(300kWh and above). These rates have higher unit prices, leading to a high sales unit price・Customers with low load factors : Since the actual amount used is low compared to the contract power, base electricity
fees represent a high share of electricity sales
The impact of fluctuations in the market price of electricity on costs tend to be limited

Adaptability to Changes in the Price of Electricity
・Expanding our base of customers with low-voltage requirements and low load factors(Contracts as of 3/31/24: low-voltage: 57,297; high-voltage: 914)
・Applying our proprietary cost adjustment system (*2) to clients with low-voltage requirements in order to mitigate the risk
from procurement fluctuations
・Regarding ER for customers with high-voltage requirements, specialize in market linkage plans to avoid risk fromprocurement fluctuations
・Procuring electricity via 1-on-1 individual contract agreements, considering the profitability of said contracts(Approx. 30% has already been procured for FY 03/2024:)
・Utilizing hedging transactions in order to reduce the impact of soaring procurement prices*1 Load Factor: Yearly Electricity Use (kWh) ÷ (Contract Power (kW) X 24 hours X 365 days ) X 100*2 Proprietary cost adjustment system: Mechanism allowing for partial cost pass-throughs of procurement costs from JEPX

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Stable recurring revenue of electricity retailing business

Making stable recurring revenue of low voltage with three levels of risk hedging measures and high voltage by
specializing in market-linkage plan contracts.
VoltageType

LowvoltageHigh
voltage

Break-even power supply procurement
price

Risk hedge
First stage

Acquired mainly a customer base with a high proportion of basic rates andrelatively high unit prices (load factor* averaged 9.0% in FY03/2024)

Approx. 17.5 yen/kWh(without our proprietary cost adjustment system)

Second stage

Introduced a proprietary cost adjustment system (reflecting a portion of
procurement costs from wholesale exchanges ) for all customers.

Third stage

The portion of the risk position not covered by the proprietary costadjustment system (approximately 30% of low-voltage demand) is coveredby the individual contract agreements.

Break-even point does not exist(Zero risk position)

Specializes in market-linkage plan contract ( system in which procurement costs from thewholesale electricity trading market are fully reflected in electricity bills)

Break-even point does not exist(Zero risk position)

Approx. 40 yen/kWh(our proprietary cost adjustment system effect: approx.
22.5 yen/kWh)*Load factor: Annual energy consumption [kWh] / (Contracted power consumption [kW] x 24 hours x 365 days) x 100

Power supply procurement environment has improved from the previous year (see futures prices for market price plans)

Procurement TypeInitial plan for FY03/2024

FY03/2024 Actual

Forecast for FY03/2025

Market price16.30yen/kWh11.50yen/kWh13.71yen/kWh

Individual contract
agreement price22.88yen/kWh22.31yen/kWh12.91yen/kWh

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Energy Solutions Company

Smart House Project Business （SHP Business）- Overview

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SHP Business
Storage batteries are vital toward achieving carbon neutrality by 2050
Against the backdrop of growing demand for renewable energy, gremz offers
storage battery solutions to households no longer eligible for the FIT program.

geared toward general
consumers
Sale of photo-voltaic systems,
storage batteries, and fullyelectric appliances; Developmentof renewable energies(Units)Trends in the storage battery market in
350,000Japan#…
300,000

250,000(MM JPY)

Am…

Expected unit sales growth of 158%
between FY 2024 and FY2030

200,000

150,000
100,000

100,000

50,00050,0000

0
FY 2018

Sales
partnerships

Events at large-scale shopping complexes→Enhance efforts to attract customers
Track record at 240 locations nationwide, approx.
2,000 times/year

Homebuilders
Previous clientsgremz solar, Inc.

Business alliance
Sales activities

Procureproducts

FY 2019

FY 2020

FY 2021 FY 2022 FY 2023 FY 2024 FY 2030 FY 2035
(Expected) (Forecast) (Forecast) (Forecast) (Forecast) (Forecast)

Source: Graph created based on data from Fuji Keizai Co., Ltd. 2021 Edition: Current State of Photo-voltaic
Battery Technology/Market & Future Outlook

2009 ～ Start of a Feed-In-Tariff (FIT) Program forhouseholds
Install
FIT Program
Electric
gremz andphotoHousehold
100% of thepowervoltaic
electricity
itssgenerated issystemcompanies

competitors

Associatedcompanies

250,000
200,000

150,000

Sales at events

300,000solds

2019～ End of FIT Program
Sale ofstoragebatteries

Homebuilders
associatedcompanies

Photo-voltaic &storage battery
manufacturers

Competitors

17

Households

End of FIT
Surpluselectricity
is sold

Electric
power
companies

While some of our competitors went out of business ortransitioned into other businesses following the collapse of the
FIT Program bubble, gremz remained in this market andreaped the benefits through the sale of storage batteries topost-FIT clients, including clients with previous installations by
our competitors.

Energy Solutions Company

３．Overview of FY03/2024

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Financial Highlights for FY 03/2024
Millions of yen

FY 03/2023
Results

FY 03/2024

Profit Margin (%)

Results

YoY change

Profit Margin (%)

ChangeChange (%)-1,483

-4.7％

17.4%

+1,616+44.9%

5,268

17.6%

+1,581+42.9%

3,540

11.8%

+1,075+43.6%Net Sales

31,392

Operating Profit

3,600

11.5%

5,217

Ordinary Profit

3,687

11.7%

Profit Attributableto Owners of Parent

2,465

7.9%

29,908

 While photo-voltaic systems for business use (ECS) and the Smart House Project (SHP) businessdelivered strong growth, net sales dropped in the Electricity Retailing Business due to a decrease in
the market price of electricity – leading to a YoY decrease in overall net sales of 4.7%.
 Operating profit grew by 44.9% YoY – a new record – thanks to an increase in sales and the thoroughexecution of risk-hedging measures in the Electricity Retailing (ER) Business.

19

Consolidated Results Overview(YoY / Compared to Forecast)

FY 03/2023(Realized)(Millions of yen)

Results

FY 03/2024 (Forecast)(Announced 5/15/2023)% SalesResults

FY 03/2024(Realized)% SalesResults

YoY% Sales

ChangeCompared to Forecast% Change

Change% Change

31,392100.0%

32,144100.0%

29,908100.0%-1,483-4.7%-2,235-7.0%

ECS Business

5,528

17.6％

8,364

26.0%

7,734

25.9%

+2,205+39.9%

-630

-7.5%

SHP Business

4,014

12.8%

4,691

14.6%

4,440

14.8%

+425

+10.6%

-251

-5.4%

ER Business

21,848

69.6%

19,08759.4%

17,73359.3%-4,115-18.8%-1,354

-7.1%

7,508

23.9％

8,352

26.0%

9,257

31.0%

+1,749+23.3%+905+10.8%ECS Business

3,472

62.8％

4,815

57.6%

4,645

60.1%

+1,173+33.8%

-170

-3.5%

SHP Business

1,696

42.3％

1,983

42.3%

1,845

41.6%

+149

+8.8%

-138

-7.0%

ER Business

2,339

10.7％

1,552

8.1%

2,766

15.6%

+426

+18.2%+1,213+78.2%

3,600

11.5％

4,320

13.4%

5,217

17.4%

+1,616+44.9%+897+20.8%ECS Business

2,079

37.6%

3,264

39.0%

3,030

39.2%

+950

+45.7%

-233

-7.2%

SHP Business

496

12.4%

711

15.2%

587

13.3%

+90

+18.3%-123-17.3%ER Business

1,801

8.2％

953

5.0%

2,267

12.8%

+465

+25.9%+1,314+137.9%Administrative Expenses

-777

-

-608

-

-668

-

-

-

-

-

Ordinary Profit

3,687

11.7%

4,350

13.5%

5,268

17.6%

+1,581+42.9%+918+21.1%

Profit

2,465

7.9%

2,826

8.8%

3,540

11.8%

+1,075+43.6%+713+25.3%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.
*Electricity Retailing Business: gremz power, Inc.

20

Segment Performance Highlights (Net Sales)(Millions of yen)

Factors of Net Sales Change(YoY)-4,115+2,205 +425

31,392

29,908

Photo-voltaic systems for business use: +3,026 MM yen-630

Net Sales
FY 03/2023(Realized)

ECS Business

SHP Business-251

29,908

Photo-voltaic systems for business use: -684 MM
yen

Sales of storage batteries & photo-voltaic systems: -320 MM yen
Electricity retailing: -1,354 MM
yen-4,115 MM yen

ER Business-1,35432,144

Sales of storage batteries & photo-voltaic systems: +475 MM yen

Electricity retailing:

Factors of Net Sales Change(Compared to the Initial Forecast)(Millions of yen)

Net Sales
FY 03/2024(Realized)

21

Net Sales
FY 03/2024(Forecast)

ECS Business

SHP Business

ER Business

Net Sales
FY 03/2024(Realized)

Segment Performance Highlights (Operating Profit)(Millions of yen)

Factors of Change in Operating Profit
(YoY)

+465
+950

(Millions of yen)

Factors of Change in Operating Profit(Compared to the Initial Forecast)+1,314

+109

-59

+90

-233

Photo-voltaic systems for business use: +1,725 MM yen
Sales of energy-efficient appliances: -576 MM yen
Increase in SG&A expenses: -222 MM yen

5,217

-123

Photo-voltaic systems for business use: -267 MM yen

5,217

4,320
3,600

Sale of storage batteries & photo-voltaic systems: +156 MM yen

Sale of storage batteries & photo-voltaic systems: -180 MM yen

Electricity retailing: +465 MM yen

Operating
Profit
FY 03/2023(Realized)

ECS Business SHP Business ER Business Administrative

Electricity retailing: +1,314 MM
yen

Operating
Profit
FY 03/2024(Realized)

22

Operating
Profit
FY 03/2024(Forecast)

ECS Business SHP Business ER Business Administrative

Operating
Profit
FY 03/2024(Realized)

Balance Sheet Statement (B/S)

Maintained a good financial position with an equity ratio to 59.7% in the current period from 57.9% in theprevious period. The main reason for the increase in merchandise accounts was an increase in orderbacklog for Photo-voltaic systems for business use.
FY03/2023

FY03/2024

ChangeCurrent Assets

14,16816,913+2,745

Cash and Deposits
Merchandise
Accounts Receivable Trade+2,249 million yen+1,215 million yen-678 million yen

Fixed Assets

3.049

4.698

+1,649Investment Securities+1,600 million yen

17,217

21,612+4,394(Millions of yen)

Total Assets

Current Liabilities

4,663

5,810

+1,147

Fixed Liabilities

2,545

2,810

+264

Total Liabilities

7,209

8,620

+1,411Net Assets

10,00812,991+2,982

Total Liabilities / Net Assets

17,217

21,612+4,39423

Main Factors

Current Portion of Long-term Loans Payable
Accounts Payable - Other
Corporate Tax Payable
Consumption Tax Payable+283 million yen+112 million yen+412 million yen+146 million yen

Long-term Loans Payable+224 million yen

Comprehensive Income
Dividends on Retained Earnings+3,608 million yen-736 million yen

Cash Flow Statement (C/F)

Cash flow from operating activities increased by 2,624 million yen.
FY03/2023

FY03/2024

Major Breakdown for FY03/2024(Millions of yen)

Cash Flow from Operating Activities

1,464

4,089

Profit before Income Taxes and Other Adjustments
Depreciation and amortization
Decrease in accounts receivable
Increase in Inventories
Corporate Tax and Others

Cash Flow from Investing Activities

80-1,787Purchase of Investment Securities
Sale of Investment Securities-2,200 million yen+600 million yen

Cash Flow from Financing Activities

1,162

-52

Long-term Loans Payable
Repayment of Long-term Loans Payable
Dividend Payouts+1,500 million yen-992 million yen-735 million yen

Change in Cash & Cash Equivalents

2,707

2,249

Ending Cash & Cash Equivalents Balance

8,224

10,47424+5,218 million yen+189 million yen+678 million yen-1,215 million yen-1,368 million yen

Energy Solutions Company

４．Financial Results and Dividend Forecast for FY03/2025

25

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Results Forecast for FY 03/2025
 ECS Business
Expected to drive growth in FY 03/2025, primarily through the installation of photovoltaic systems
on the roof of factories and other facilities, allowing SMEs to use the electricity generated (selfconsumption) thereby reducing their energy bill. Within this scope, gremz seeks to differentiate
itself from other industry players by focusing on SMEs as our core target market segment.
We also have plans to grow cross-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 demandsource when it comes to the installation of storage batteries for household use.
We expect stable results in this business, 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 modelallowing 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 beenstable starting with the beginning of LFY, so in FY 03/2025, we will work to grow our business byincreasing the number of contracts. (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 andstable growth in the ER Business. Through these, we expect to break a new operating profit
record.

26

Forecast for FY03/2025

FY03/2024 Q2
Cumulative (Actual)

FY03/2025 Q2 Cumulative(Forecast)

FY03/2024(Actual)(Announced 5/15/2024)

Results% SalesResults% SalesResults% Sales

15,944100.0%

29,908100.0%

16,500100.0％ECS Business

4,390

27.6%

7,734

25.9%

5,311

SHP Business

2,523

15.8%

4,440

14.8%

ER Business

9,030

56.6%

17,733

5,123

32.1%

ECS Business

2,670

SHP Business
ER Business

FY03/2025Forecast(Announced 5/15/2024)

Change(YoY)

Change(YoY)

Results% Sales+3.5％

34,000100.0％+13.7％

32.2％+21.0％

10,90632.1％+41.0％

2,183

13.2％

-13.5％

4,310

12.7％

-2.9％

59.3%

9,005

54.6％

-0.3％

18,783

55.2％

+5.9％

9,257

31.0%

5,550

33.6％

+8.3％

11,20032.9％+21.0％

60.8%

4,645

60.1%

3,241

61.0％

+21.4％

6,654

61.0％

+43.2％

1,079

42.8%

1,845

41.6%

910

41.7％

-15.7％

1,803

41.8％

-2.3％

1,373

15.2%

2,766

15.6%

1,398

15.5％

+1.9％

2,742

14.6％

-0.8％

3,197

20.1%

5,217

17.4%

3,250

19.7％

+1.6％

6,500

19.1％

+24.6％ECS Business

1,940

44.2%

3,030

39.2%

2,266

42.7％

+16.8％

4,575

42.0％

+51.0％SHP Business

444

17.6%

587

13.3%

283

13.0％

-36.3％

575

13.4％

-2.0％

ER Business

1,133

12.6%

2,267

12.8%

1,107

12.3％

-2.3％

2,082

11.1％

-8.2％

Administrative Expenses

-320

-

-668

-

-407

-

-

-733

-

-

Ordinary Profit

3,231

20.3%

5,268

17.6%

3,304

20.0％

+2.2％

6,570

19.3％

+24.7％

Profit

2,177

13.7%

3,540

11.8%

2,190

13.3％

+0.6％

4,320

12.7％

+22.0％(Millions of yen)
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.
* Electricity Retailing Business: gremz power, Inc.

27

gremz at a glance

Achieve a rapid growth/high profitability model for the ECS Business, driven by the sale of photovoltaic systems for business use for SMEs.



We will work to improve corporate value through a two-pronged approach together with stable
recurring revenue in the ER Business.

Operating Profit CAGR

Operating Profit Margin

ROE

30.1%

17.4%

31.0%

Reasons for high profitability / rapid growthMarket Scale

SME power
contracts:6 M
Operating Profit CAGR: Results between FY 03/2019 - FY
03/2024
Operating Profit margin, ROE: FY 03/2024 results

Growth potential in ECS

Stable recurring revenue in the
ER Business

Achieved high profitability& rapid growth by focusing
on low-voltage and throughproprietary sales proposals
linked with high client
satisfaction.

Achieved stable growth byestablishing a businessmodel allowing us to avoid
negative spread profit
margins.

28

Reasons for Growth in the ECS Business Photo-voltaic systems for business use allow SMEs to greatly reduce theirelectricity bill, and this product category is expected to continue driving
business expansion going forward.
 Introducing the use of these photo-voltaic systems for business use benefit

our clients by helping them greatly reduce their electricity bill.

Reduction

Offer new electricity
systems to SMEs

29

Reduce electricity Costs

Positioning & Latent Markets for the ECS Business

gremz targets SMEs with high demand for our photo-voltaic systems, with the objective oflowering their electricity bill.
 gremz’ current cumulative contract acquisition record only accounts for 0.5% of its addressable
market, meaning there is significant room for growth.

 gremz targets SMEs, especially in manufacturing(factories, etc.), agriculture & lifestock (factory farms,etc.), and services (restaurants, etc.)

Demand in areas outside ofgremz’ purview

 SMEs are an expansive market w/ massive latent demand.
We estimate the majority of low -voltage (200V) contracts(approx. 6 million) to be from SME business operators.
 Taking into account factors like roof configuration, etc.,
we position 20% of this total of 6 million as potential
targets, and half of these as client candidates, bringing
this number to 600,000.
gremz’ cumulative clients acquisition record stands at
3,000 (approximately 1,200 in FY 03/2024), which only
accounts for 0.5% of its addressable market.

Business
operators(high-voltage)

Groundmounted,
etc.

Small & Medium
Enterprises
Approx. 6 million
Potential targets for gremz
Approx. 1.2 million

Client candidates
Approx. 600,000

Mega
Solar

gremz cumulativeacquisition record:
3,000 clients; 0.5% of
its addressable market

30

 We face no competition from large players in this area,
meaning gremz holds the number one spot in thisindustry, but we believe there is further room for us togrow our market share beyond the current level of 0.5%.

 Off-site installation of ground -mounted photo-voltaic
systems and small-scale installations for large
companies (at CVS, etc.) are outside the purview of theservices offered by gremz.

Electricity Retailing Business
Framework generating stable recurring revenue is already inplace
Lowvoltage

Electricity Retailing
Clients w/ low-voltage requirements(200V・100V)&
Clients w/ high-voltage requirements(6,600V～)

Meteredlighting
・
Lowvoltage
power

Sales targeting our existing client base, e.g., clients who use our electronic circuit breakers and photo-voltaic
Our strengths systems for business use, allow us to sustain a high ratio of orders to sales approaches.
Sales
strategy

We target mainly clients with low load factors (base electricity fees accounting for a large share of the overall
electric bill, and with higher unit prices) so this allows us to secure high levels of profitability in excess of theindustry average.

Hedge risk

Adopted a proprietary cost adjustment system (allowing for partial cost pass-throughs of procurement costs from
JEPX) starting FY 03/2023;
Additionally, we offset risk through 1-on-1 individual contract agreements.

Our strengths
Highvoltage

Sales
strategy

Starting in August 2022, gremz now focuses exclusively on market-linkage plans. The previous fee structure
included profit in the base electricity fee. In March 2024, we released a fee structure including profit in theamount of electricity used and a zero CO2 emissions plan (*)

Hedge risk

Since these are market-linkage plans, gremz is insulated from potential risks resulting from a spike in the market
price of electricity. We also thoroughly manage credit risk. Accounts for approximately 1/3 of all electricity sold.
* Plan offering environmental benefits in the form of zero CO2 emissions, achieved byusing 100% Non-FIT Non-Fossil certified energy without specifying the energy source.

Clients w/ high-voltage
requirements
Contract: >=50kW (6,600 V～)

Electric powercompanies

Wholesalemarkets

Office buildings & large-scale
factories

Electricity RetailingPower producers

Retailing the electricity ourselves and through referrals from our partners allows us to increase sales
opportunities and improve productivity.

Procure electricity
at attractive
prices and offer
affordable power
to clients

Clients w/ low-voltage
requirements
Contract: <50kW (100～200 V)

Return to our growth strategy
 Last FY marked the completion of a business model designed to avoid

negative spread margin situations arising from a spike in the wholesalemarket price of electricity.
 This FY and beyond, we will be taking this business model with strict riskhedges in place, and work to once again put this business on a growthtrajectory by securing new contracts.

Small factories, stores,
households

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

ER Business
SHP Business
ECS Business

35,000Net Sales Trend

25,00019,311

15,00012,137

5,000

4,265
3,465
4,407

7,115
3,924
4,450

(5,000)

FY 03/2019

FY 03/2020

ER Business
SHP Business

9,252

1,000

ECS Business-1,00021,84817,73323,252
13,600

4,583
5,475

4,528
5,122

4,014
5,528

4,440
7,734

FY 03/2021

FY 03/2022

FY 03/2023

FY 03/2024

2,106

1,650

456
299
1,280
-635

1,362
359
1,042
-657

745

FY 03/2019

FY 03/2020

1,400

2,097
-486
-705

FY 03/2025 (Forecast)•

Net sales: 34,000 MM yen (YoY: +13.7%）•

Operating Profit: 6,500 MM yen(YoY: +24.6%）
We expect to break new records

32

FY 03/2021

2,450

34,00018,783
4,310
10,906
FY 03/2025(Forecast)

6,500
5,217
3,600

5,000
3,000

29,908Operating Profit Trend

7,000
Administrative

15,48931,392

2,267

2,082
575

445
629
2,079

1,801
496
2,079

-703

-777

-668

-733

FY 03/2022

FY 03/2023

FY 03/2024

FY 03/2025(Forecast)

587

3,030

4,575

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%

32.9%

30.6%
28.2%

40.00%
4,320

30.00%

3,540

19.0%

20.7%

20.3%
20.0% 2,465 47.0
2,158

19.6%

2.51542.5193FY
03/2014FY
03/2015FY
03/2016

505
4.2

703
6.3

20.00%

FY
03/2017FY
FY
03/2018 03/2019

22.0

10.00%

12.0

8.5

25.00%

15.00%
1,120
19.0
17.0

1,001
399
2.5

57.0

18.3%
1,483

14.3%

35.00%

30.5%

5.00%
0.00%

FY
03/2020

Total Dividend (JPY)FY
03/2021FY
03/2022FY
03/2023

Profit (JPY MM)

FY
03/2024FY
03/2025(Forecast)*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.

33

Energy Solutions Company

５．ESG at gremz, Inc.

34

Copyright : gremz, Inc All Rights Reserved

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

35

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 high-value added
product solutions that make people’s lives safer and more comfortable.

Our Corporate Vision
Our Customers
Consistently deliver quality service to ourcustomers.

Our Employees

Our Shareholders

Society

Reward our shareholders with continuous andsustainable growth

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

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

36

Copyright : gremz, Inc All Rights Reserved

Energy
SolutionsCompany
Company
EnergySolutions

Please direct your inquiries to the following number and e-mail address:
本資料に関するお問い合わせ

TEL 03-5769-3500
ir@gremz.co.jp(Disclaimer)（免責事項）
This slide presentation is not an official disclosure document as defined by the Financial Instruments and Exchange Act.
We本資料は、金融商品取引法上のディスクロージャー資料ではなく、その情報の正確
offer no guarantee regarding the accuracy of any or all information contained herein.
性、完全性を保証するものではありません。また、特定の商品についての募集・勧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.
誘・営業等を目的としたものではありません。
Any statements concerning the Company’s future business performance are based on information available as of the creation of
this本資料に記載された見解、見通し、ならびに予測等は、資料作成時点での弊社の判
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 such forecasts contained within the present document.
断であり、今後、予告なしに変更されることがあります。予めご了承ください。