RENOVA (9519) investor relations material

Executive summary

• Q1 revenue was ¥19,330 million, down 5.8% YoY, with profit attributable to owners dropping 89% YoY to ¥95 million and operating profit down 68.4% YoY to ¥1,043 million.

• The decline was due to concentrated biomass maintenance and solar repairs, but progress remains on track for full-year targets.

• Major milestones included securing financing and starting construction for the 100MW Fukuroi Ugari BESS and a 25-year PPA for the 54.6MW Reihoku-Amakusa Wind project.

• The BESS business expanded to 677MW in operation and construction, positioning the company as a top player in Japan.

• Total comprehensive income swung to ¥14,110 million from a loss of ¥11,486 million in the prior year, mainly due to positive cash flow hedge valuation.

Financial highlights

• Q1 FY3/2027 revenue was ¥19,330 million (–5.8% YoY); EBITDA was ¥6,783 million (–21.3% YoY); operating profit was ¥1,043 million (–68.4% YoY).

• Profit attributable to owners of the parent dropped 89% YoY to ¥95 million; EPS was ¥1.05.

• Full-year FY3/2027 forecast: revenue ¥95,700 million (+9.2% YoY), EBITDA ¥33,800 million (+10.7%), operating profit ¥11,300 million (+36.5%), profit attributable to owners ¥3,400 million (+2.8%).

• Total assets increased to ¥627,821 million as of June 30, 2026; equity attributable to owners rose to ¥132,657 million.

• Ratio of equity attributable to owners to total assets improved to 21.1% from 20.1% sequentially.

Outlook and guidance

• Full-year forecasts remain unchanged, with expected increases in revenue and profit driven by full-year contributions from all biomass plants and reduced downtime.

• Biomass business expected to generate stable revenue; spot fuel price assumptions: wood pellets $185/t, PKS $130/t, FX ¥155/USD.

• BESS EBITDA for FY2030 projected at ¥11.5–12.5 billion, with upside from CPI indexation and merchant sales.

• No dividend is forecast for the fiscal year ending March 2027.