RENOVA : Notice of Losses on Investments in Affiliate and Revision to Full-year Consolidated Forecasts (IFRS)

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Written by publishing team

January 7 2022

Company name: RENOVA, Inc.

Actor: Yosuke Kiminami, Founding CEO

(Stock Code: 9519

First Tokyo Stock Exchange)

Contact: Kazushi Yamaguchi, CFO

(Tel: +81-3-3516-6263)

Notice of investment losses in a subsidiary company

Full-Year Consolidated Outlook Review (IFRS)

RENOVA, Inc. (hereinafter referred to as “RENOVA”) sincerely apologizes to our shareholders for any concerns arising from the recent loss of company value following the announcement of the result of the public tender for the selection of the business operator in Yurihonjo (North and South Sides), Akita Prefecture, a promotion area for the development of renewable marine power generation facilities , in accordance with the Law to Promote the Use of Offshore Areas for the Development of Renewable Offshore Energy Generation Facilities. Renova announces that in light of recent business trends and other factors, it has revised the consolidated forecast for the fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022).

RENOVA does not expect additional losses in the following fiscal year and beyond in connection with the treatment of such loss on our affiliate investments.

1. Investment losses in the ally

As announced on December 24, 2021, Akita Yurihonjo Offshore Wind GK, an equity method subsidiary of RENOVA, Inc. (hereinafter referred to as the “Affiliate”), which has applied for a public tender to select a business operator in Yurihonjo (North and South Sides), Akita Prefecture, a promotion area for the development of renewable offshore power generation facilities, in accordance with the Law on the Promotion of the Use of Offshore Development for Development Renewable marine power generation facilities, not selected as a designated business operator. As a result, RENOVA recorded a loss on the investment of the affiliate company (3,400 million yen).

2. Revision of the full-year consolidated forecast figures (IFRS) for the current fiscal year (ending March 31, 2022) (unit: million yen)

he won

he won


Operating profit

Attributed to

earnings per




Expectations announced





65.31 yen

previously (a)

Adjusted Forecast (B)



– 500

– 1100

– 13.98 yen

change (BA)

– 1400

– 400

– 5200

– 6200

rate of change (%)

– 4.7

– 3.2


Combined results for





149.67 yen

previous fiscal year

Expired March 31, 2021* 3

* 1 EBITDA = Revenue – Fuel Expense – Outsourcing Expense – Salaries and related employee expenses + share

from investment loss accounted for using the equity method + other income and expenses)

2. Reasons for review

The subsidiary, which has applied for a public tender for the selection of the commercial operator of Yurihonjo (North and South sides), Akita Prefecture, a promotion area for the development of offshore renewable power generation facilities, in accordance with the Law on the Promotion of Use of Offshore Areas for the Development of Offshore Renewable Power Generation Facilities, was not selected. As a specific business operator. As a result, RENOVA recorded losses in the associate’s investment and related expenses.

RENOVA intends to continue developing offshore wind projects in several other offshore regions in Japan, with the exception of the Yurihonjo offshore area, Akita Prefecture. Based on the results of the public tender for selection, the capitalized development costs were recorded as expenses in a lump sum. As a result, RENOVA does not expect additional losses related to all offshore wind energy project development activities to date in Japan.

Based on these factors, consolidated revenue and profit forecasts have been revised.

Solar photovoltaic, biomass and onshore wind power plants (capacity: about 590 MW) operating in Japan and abroad maintained stable operation, and no events occurred that might lead to a revision of the consolidated forecast numbers. The solar photovoltaic, biomass and hydroelectric plants under construction (capacity: about 390 MW) are expected to begin commercial operation as planned.

(Main factors affecting reviews) (unit: million yen)


Main reasons


he won


Expect to lose business development fees in the current fiscal year,

etc. (-1400)



The above factors

Operating profit

– 500

The above factors

Total investment losses in the associate company (- 3,400)

the details

Loss of investment in the associate (- 6,700)

Recovery of contribution to building the network, etc. (+ 3900)

Other related losses (- 600)

Record expenses in a lump sum of capitalized expenses related to

Offshore wind projects in Japan (- 1,000)

Attributable profit

– 1100

The above factors

for owners

Reversal of deferred tax assets (- 1,300)



Forecast numbers above are based on information currently available and may be subject to change. In addition, the actual results may differ from the expected numbers due to various factors.

[For inquiries about this release] Kenshiro Nose, Investor Relations Tel: +81-3-3516-6263


prediction varianceEBITDA

100 million yen

  • While projected business development fees have been reduced this fiscal year, EBITDA forecasts remained above 12 billion yen due to steady progress in the power generation business and cost-cutting efforts.

prediction varianceOperating profit

(100 million yen)

  • Recorded losses on investments in the Yurihongo offshore wind project. The contribution will be refunded to help build the network.
  • All risk assets related to local offshore wind energy projects under development have been spent as lump sums (RENOVA continues development activities).

prediction varianceProfit attributable to parent owners

(100 million yen)

  • Opposite all Renova Unconsolidated deferred tax assets.


Renova company Share this content on January 07 2022 He is solely responsible for the information contained therein. Distributed a year ago, without editing and without modification, on date January 07 2022 03:17:00 UTC.

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2022 مبيعات sales 29,875 m
259 AD
259 AD
net income 2022 5375 m
46.5 m
46.5 m
net debt 2022 167
1443 AD
1443 AD
P/E Ratio 2022 26.6x
crop 2022
capitalization 143 B
1237 AD
1238 AD
EV / Sales 2022 10.4x
Exposure Value / Sales 2023 10.2x
Nbr of staff 278
free float 48.1%

Duration :

a period :

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number of analysts 5
last closing price

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average target price

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Spread/Average Target 51.9%


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