Message from Takami Kondo

Dear Shareholders and Investors,

We are addressing outdated market practices and solving emerging issues, delivering services that change society for the better.

I want to take this opportunity to thank you for your support over the last fiscal year. The following is my report of the Nexyz Group consolidated earnings for the fiscal year ending September 2018.

We recorded consolidated net sales of ¥16,873 million, up 5.1 percent compared to the prior consolidated fiscal year. Operating income amounted to ¥1,924 million and ordinary income amounted to ¥1,941 million, decreases of 6.4 percent and 14.4 percent, respectively. Net income attributable to owners of the parent rose 8.3 percent to ¥1,913 million. Our mainstay Energy and Environment Division performed well, reporting net sales of ¥13,900 million, up 29.2 percent. Segment profit amounted to ¥yen;3,434 million, an increase of 33.2 percent. Taken together, the segment reported a fifth consecutive year of higher revenues and profits.

Nexyz Zero Series is service that allows customers access to LED lighting, commercial HVAC, refrigeration, and other equipment with zero installation costs. We achieved new levels of sales efficiency for the service as we added more sales representatives and leveraged introductions from existing customers, which accounted for 50 percent of sales for the segment.

In November last year, we sold off Hakubi Corporation and the company’s nearly ¥yen;2 billion in sales. However, Energy and Environment Division performance more than made up the difference, and consolidated sales were up 20.7 percent year on year when excluding the impact of our Hakubi divestment.

We remain committed to increasing investor returns, raising dividends for a fifth consecutive year. We forecast dividends for the fiscal year ending September 2019 of ¥yen;40 per share, consisting of a ¥yen;20 interim dividend and a ¥20 year-end dividend. This represents an increase of ¥yen;10 per share in ordinary dividends, up 1.3 times compared to the fiscal year ended September 2018.

We at the Nexyz Group are pursuing our vision of changing outdated practices and solving emerging issues across a broad range of industries. Every Nexyz Group employee is committed to making our company an integral part of society. Look forward to even more innovative advancements from the Nexyz Group in the future.

Takami Kondo
Nexyz.Group CEO & Group Representative
Nexyz.Group Corporation

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