Message from Takami Kondo

Times of crisis are when the pace of evolution accelerates

First, I want to express my heartfelt gratitude to you, our shareholders and investors, for your continued support. Also, on behalf of Nexyz.Group, I want to express our heartfelt sympathy to individuals and families suffering from the effects of COVID-19. We wish all a speedy recovery.
The following is my report of Nexyz.Group earnings and initiatives for the fiscal year ended September 2020.

For the fiscal year ended September 2020, we recorded consolidated net sales of ¥15,728 million, down 14.6% year on year. Operating loss amounted to ¥1,627 million and ordinary loss amounted to ¥1,782 million. We recorded a net loss*1 of ¥2,136 million for the period. To prepare for future contingencies, we have incorporated the most recent status of collections and available information into our allowance for doubtful accounts and allowance for contract cancellations. We are not overly anxious to securitize lease receivables, but we will continue to monitor the situation. We plan to pay a dividend of ¥45 per share for the fiscal year ended September 2020, marking a sixth consecutive year of increased dividends. This decision reflects our expectations of recording a net profit for the fiscal year ending September 2021. We will continue to be proactive in returning profits to our shareholders.

Responding quickly to dramatic changes in social needs

In the second quarter, the Nexyz.Zero Division began experiencing restrictions on sales activities and procurement due to the impact of COVID-19. However, sales activities resumed with the adoption of telework, web conferencing, and other measures. At the same time, we began sales of the TURNED K photocatalytic disinfection and deodorization device in March 2020, having placed units in more than 10,000 customer stores so far. We will continue to support store operations across all industries through an increasingly robust lineup of with-COVID-19 products available for immediate use in the prevention of communicable diseases.

As a new measure, we have subdivided our sales areas and established 13 new sales offices. Including existing offices, we now have a cumulative total of 24 locations throughout Japan, and we will continue to support our customers through an even greater localized approach as we cover more geographic regions and share our expertise.

Our Electronic Media Division has focused on online sales activities. In the fourth quarter, the division saw a recovery in both sales and segment profit.

Packaged electricity products for B2C sales
The key to growth is recurring revenue

To date, we have created a large base of more than 62,964*2 customers who have implemented Nexyz.Zero Series products. Our growth strategy calls for generating long-term recurring revenue via breakthroughs in new sales of our existing LED products, upselling our with-COVID-19 product line, consisting mainly of photocatalytic disinfection and deodorization devices, and adding electricity services as part of value packages.

We intend to further refine the structure of the Nexyz.Zero Series and its unique model of zero up-front investment, as we identify new paths for progress. Look forward to even more new and unique ways in which the Nexyz.Group challenges the status quo.

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

*1 Net income attributable to owners of the parent
*2 As of September 2020

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