Regarding Capital and Business Alliance with Sumasapo Inc.
ENECHANGE Ltd.
Augst 5, 2022
Tokyo Stock Exchange Growth
Securities Code: 4169
Let's Change Energy, ENECHANGE
Disclaimer
Handling of these materials
These materials contain statements regarding future prospects. These statements have been prepared based on information available at the time they were prepared. These statements are not guarantees of future results, and contain risks and uncertainties. Please note that actual results may differ greatly from the outlook due to changes in the environment, etc.
Factors affecting actual results include, but are not limited to, domestic and international economic conditions and trends in industries connected to the Company.
In addition, information contained in these materials from outside our company has been quoted from publicly-available information, etc. We have not verified the accuracy, appropriateness, etc. of such information in any way, and make no guarantees regarding it.
Copyright © ENECHANGE Ltd. All Rights Reserved. | 2 |
Summary
Summary
Transaction
Overview
Purpose
Synergies
Acquired 47,000 outstanding shares of Sumasapo Inc. (hereinafter referred to as "Sumasapo")
- Date of execution of share transfer agreement: August 5, 2022
- Effective date of share transfer: August 12, 2022 (Scheduled)
- Acquisition amount: 100 million JPY
- Ownership ratio post transaction: 2.1%
- Impact on current fiscal year performance: Under investigation (expected to be limited)
- Entering into a business alliance agreement along with the share transfer agreement
Increase in number of household users and ARPU for Platform Business
- Through the alliance with Sumasapo, which has established a channel to reach 2.26 million users nationwide by providing services to 604 property management companies, we expect:
- an increase in the number of electricity and gas switches at the time of moving, and
- an increase in ARPU through cross-selling
- To strengthen this alliance, ENECHANGE also establishes capital relationship with Sumasapo.
Providing optimal energy switching services to users by leveraging networks of both parties
- Through this alliance, ENECHANGE expects to see a significant increase in opportunities for switching electricity and gas to household users, especially when they move, and Sumasapo expects to enhance its service quality by providing an electricity and gas platform services to household users.
Copyright © ENECHANGE Ltd. All Rights Reserved. | 3 |
Purpose
Purpose of Alliance
This alliance is aimed to increase the number of users and ARPU, which are key KPIs of the Platform business. Sumasapo has established a channel that can reach 2.26 million users nationwide*2 through its services to 604 property management companies. As such, ENECHANGE will be able to capture electricity and gas switching opportunities at the time of moving, a key area of strategic focus. ENECHANGE also expects an increase in ARPU through cross-selling.
■ Impact on KPIs | ■ Illustration of the increasing number of users and ARPU |
Key KPIs
Number of users | ARPU※1 | |
(household) | ||
User | increase | ARPU | increase | |
contributing to | due to | |||
recurring revenue | cross-selling | |||
Approx. | |
169,000 | |
法人 | |
家庭 | |
FY22 Q1 | FY23 End |
Number of users | target |
(household) |
2,017 JPY
法人
家庭
FY22 Q1 | FY23 End |
ARPU | target |
This alliance has positive impact on KPIs of the Platform business
※1 Average Revenue Per User: Obtained by dividing the quarter segment sales by the number of users eligible for recurring revenue at the end of the quarter ※2 From materials received by Sumasapo (as of August 2022)
4
Synergies
Expected Synergies
Through this alliance, we will be able to provide the electricity and gas comparison and switching platform to users who switch electricity and gas when they move, leveraging Sumasapo's channels to property management companies and residents. In order to strengthen this alliance, we will also invest in Sumasapo.
Users
Reaching out to residents through the | Lineup of electricity and gas tariffs |
network of property management | utilizing our network of affiliated |
companies. | companies |
User
Information
Affiliated
Companies
Major energy
companies
Property
Residents management
(Approx. companies
2.26 million) (604 companies)
Electricity and | ||||
gas switching | ||||
services etc | ||||
Enhancing service quality | Significant increase in | |||
by providing electricity and | opportunities to switch | |||
gas platforms to residents | electricity and gas, | |||
especially when moving | ||||
City gas/LPG
companies
New energy
companies
Copyright © ENECHANGE Ltd. All Rights Reserved. | 5 |
This is an excerpt of the original content. To continue reading it, access the original document here.