(E04526) Stock Price

**Business Overview for Investors: Miyazaki Gas**

Miyazaki Gas is a regional energy supply company centered in Miyazaki Prefecture. The company's core business is the manufacturing and supply of city gas, while also operating a diverse portfolio including propane gas sales, liquefied natural gas (LNG) operations, and construction machinery services. Together with 13 affiliated companies, the group forms an important pillar of the region's energy infrastructure.

The company's revenue base comes from stable gas supply to residential, commercial, and industrial customers. In its city gas business, it provides integrated services spanning manufacturing, supply, sales, equipment installation, and gas appliance sales, building long-term customer relationships. In recent years, the company has expanded into electricity retail to diversify revenue streams as a comprehensive energy company.

Operations are divided into three main segments. The gas business encompasses city gas supply, and through subsidiaries, propane gas sales, gas appliance sales, and safety inspection services. Ancillary operations include liquefied natural gas sales and electricity sales from solar power generation. The construction machinery business supports the regional construction industry through equipment rental, civil engineering work, and industrial waste disposal services, contributing to revenue stability.

Miyazaki Gas has established a growth strategy aimed at solidifying its position as a comprehensive lifestyle services provider in a challenging market environment. The company prioritizes strengthening its proposal-based sales capabilities and service quality as core management pillars, and seeks to remain the customer's preferred choice through improved safety standards and contributions to regional development. The company positions revenue and operating profit as key performance indicators and is strengthening its management foundation by securing stable cash flow.

The company designates environmental conservation as a priority investment area and positions contribution to a low-carbon society as a strategic pillar. In addition to expanding the adoption of natural gas and propane gas, Miyazaki Gas is actively promoting environmentally conscious gas appliances and residential fuel cells combined with renewable energy. Through expanding sales of these eco-friendly products, the company aims to differentiate itself from new entrants resulting from full liberalization of electricity and gas retail markets and secure competitive advantage.

In its construction machinery business, the company plans to evolve into a comprehensive service provider covering rental, sales, repair, and transportation services. Despite a declining trend in construction investment and intensifying competition among peers, the strategy aims to maintain and expand its customer base by providing one-stop services. This diversification is intended to offset seasonal fluctuations in the gas business and stabilize earnings.

The company prioritizes human capital strengthening as the foundation for technological innovation and competitive improvement, and focuses on securing and developing talented personnel. In response to structural challenges such as energy price volatility, inflation from yen weakness, and population decline, the company is implementing a dual approach of strengthening sales capabilities and improving operational efficiency. Based on strict compliance, the company is pursuing a management strategy that realizes sustainable growth while contributing to regional development.