(E04524) Stock Price

Nippon Gas is an energy company with its city gas business as the core operation in the Kyushu region, centered on Kagoshima Prefecture. The company manufactures, supplies, and sells city gas primarily in Kagoshima City, its main service area. In addition to city gas supply using liquefied natural gas as raw material, the company also operates a liquefied petroleum gas business. The company has further expanded its business scope as a comprehensive energy provider by engaging in retail electricity sales and power generation sales.

The company's primary customers are households and businesses in Kagoshima City, Kirishima City, Izumi City, and other areas that use gas. In the city gas business, the company provides stable gas supply to customers within its service area centered on Kagoshima City, while the liquefied petroleum gas business serves customers across wider regions outside the city gas supply zone. The revenue structure is built on stable income from gas sales, supplemented by ancillary revenue from gas equipment sales and construction contracts.

The company group's operations are organized into five main business segments. The city gas business also supplies to Kirishima City and Izumi City through subsidiaries, while the liquefied petroleum gas business covers areas outside the city gas supply zone. The construction and gas equipment business provides comprehensive services ranging from piping installation to gas equipment sales. The electricity business operates in both retail sales and power generation. Other operations include sports facility management and agricultural product sales, supporting the company's community-focused diversified business strategy.

Nippon Gas is positioning the development of the Nippon Gas Platform—comprising gas, electricity, and lifestyle services—as a pillar of its growth strategy during a period of major transformation marked by energy market liberalization and the 2050 carbon neutrality target. Against the backdrop of competitive pressures from electricity and gas deregulation across industry boundaries, the company is transitioning from its traditional city gas business foundation to become a comprehensive energy company. Through this strategy, it aims to establish itself as the leading lifestyle support company group in the Kyushu region, centered on Kagoshima Prefecture.

As a priority investment area, the company is significantly accelerating its renewable energy initiatives. Specifically, it is actively investing in solar power generation, biogas power generation, and small hydroelectric power projects—a strategy that simultaneously achieves carbon neutrality compliance and business diversification. By strengthening renewable energy procurement, the company is moving away from fossil fuel dependency while reducing environmental impact and creating new revenue streams. In the context of heightened energy procurement concerns following Russia's invasion of Ukraine, these efforts represent an important competitive differentiator from an energy security perspective.

Digital transformation is a critical pillar in the company's business expansion. It is building a framework where digital technology supports operational efficiency, customer service enhancement, and new business development. Beyond traditional city gas and liquefied petroleum gas operations, the company is expanding into electricity retail and power sales businesses, steadily broadening its scope as a comprehensive energy company. It is also strengthening ancillary businesses such as gas appliance sales and piping installation services, adopting a strategy to build multifaceted customer touchpoints.

In technological innovation, the company prioritizes employee skill development and organizational agility. During this period of rapid transformation, it is driving innovation through both technical capabilities and human resource development and organizational management. Most importantly, the company is fully committed to building a technical framework that ensures stable energy supply and safety assurance regardless of any crisis, positioning reliable service delivery that customers can trust with their daily lives as the paramount objective of technological innovation.