Environment Friendly Holdings
Basic Information
- Stock Code
- 3777
- Industry
- Information and Communications Industry
- Category Detail
- Electric Power & Gas
- Prefecture
- Tokyo
- Establishment Year
- July 1995
- Listing Year
- September 2005
- Official Website
- https://www.fht-hd.com/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Wedge HD, Mobcast, ApriX, Tokyo Electric Power Company Holdings, Chubu Electric Power, Kansai Electric Power, Chugoku Electric Power, Hokuriku Electric Power, Tohoku Electric Power, Shikoku Electric Power, Kyushu Electric Power, Hokkaido Electric Power, J-Power
Overview
Environment Friendly Holdings is a holding company founded in 1995, engaging in environmental-related businesses and IT service operations, and pursuing unique management that integrates environmental load reduction with ICT solutions.
Current Situation
Environment Friendly Holdings achieved consolidated sales of approximately 263 million yen in 2021, with its main businesses being building maintenance and renewable energy operations through environmental-related subsidiaries. In the IT field, it provides network construction support and application server operations through Connect Co., Ltd., and also develops software leveraging its technical expertise. In recent years, it has focused on solar power generation construction and operations, as well as biomass fuel-related businesses, aiming to promote sustainable energy solutions. While it has recorded temporary operating losses, it maintains positive net profits and is progressing with management restructuring. It positions the integration of renewable energy and IT technologies as the core of its management to build a sustainable society and aims to establish a foundation for future growth. In 2024, it changed its company name to emphasize a strategy focused on environmental businesses. Challenges include adapting to changes in the market environment and intensifying competition, requiring ongoing management reforms.
Trivia
Interesting Facts
- Has a history of once owning the Turbolinux Linux distribution business.
- The composite management of environmental businesses and IT services is a rare business type.
- Subsidiaries span a wide range of industries domestically and internationally, forming a diversified group.
- Conducted large-scale reorganization and voluntary retirement solicitations in 2008.
- Has a history of repeated business transformations through multiple name changes.
Hidden Connections
- Strong connections in communications and IT due to past affiliation as a related company of Livedoor Holdings (former LDH).
- Turbolinux trademarks and brand business transferred to partner companies.
- Built a unique management structure connecting environmental energy and IT fields as a holding company.
- Flexible response to environmental-related businesses nationwide from base in Minato-ku, Tokyo.
Future Outlook
Growth Drivers
- Increasing demand for renewable energy due to strengthened environmental regulations
- Expansion of IT infrastructure demand and DX promotion
- Social value creation considerate of sustainability
- Activation of energy-saving and environmental measure markets in local areas
- Strengthening of business development through group synergies
- Operational efficiency and quality improvement through new technology introduction
- Expansion of government support toward decarbonized society
- Growing importance as climate change countermeasure industry
- Opportunities to export environmental-related technologies to overseas markets
- Strengthening of collaboration with local communities
Strategic Goals
- Achieve 40% revenue ratio from renewable energy business
- Expand market share in IT services business
- Promote technology development contributing to environmental load reduction
- Build environmental-related networks domestically and internationally
- Achieve management efficiency and sustainable growth
Business Segments
Energy Business
- Overview
- Provides renewable energy introduction support and operation services to companies and local governments.
- Competitiveness
- Comprehensive capabilities in environmentally considerate energy solutions
- Customers
-
- Local Governments
- Industrial Facilities
- Commercial Facilities
- Environmental Service Companies
- Renewable Energy Operators
- Products
-
- Solar Power Equipment Construction
- Biomass Energy Production
- Energy Management Services
Facility Management and Maintenance
- Overview
- Handles overall building maintenance to support safe and comfortable environments.
- Competitiveness
- Introduction of advanced management technologies considerate of the environment
- Customers
-
- Office Building Management Companies
- Commercial Buildings
- Factories
- Public Facilities
- Products
-
- Building Equipment Management
- Cleaning Services
- Repair Work
IT Services
- Overview
- Provides optimal IT infrastructure and server operation support services to companies.
- Competitiveness
- Specialized knowledge and flexible support system
- Customers
-
- Small and Medium Enterprises
- Software Development Companies
- System Integrators
- Public Institutions
- Products
-
- Network Design and Construction
- Application Server Operations
- IT Infrastructure Maintenance
Parking Facility Business
- Overview
- Comprehensive support from design to maintenance of parking facilities specialized for urban areas.
- Competitiveness
- High construction quality and after-sales service
- Customers
-
- Real Estate Companies
- Condominium Management Associations
- Commercial Facility Operators
- Products
-
- Mechanical Parking Facility Design and Construction
- Maintenance Inspection Services
Environmental Consulting
- Overview
- Handles planning and implementation support for reducing environmental impact.
- Competitiveness
- Extensive industry knowledge and regulatory compliance capabilities
- Customers
-
- Environmental-Related Companies
- Local Governments
- Public Interest Corporations
- Equipment Manufacturers
- Products
-
- Environmental Management Support
- Renewable Energy Introduction Planning
- Regulatory Compliance Advice
IT Package Software Development
- Overview
- Develops, maintains, and plans general-purpose software for corporations.
- Competitiveness
- Optimal design based on business knowledge
- Customers
-
- Corporations in General
- Public Institutions
- Educational Institutions
- Products
-
- Package Software Development
- Customization Services
Competitive Advantage
Strengths
- Diversified business expansion in environmental-related fields
- Group collaboration through holding company structure
- Focus on renewable energy technologies
- Possession of specialized technologies in IT field
- Response to social needs for environmental load reduction
- Business integration through diverse subsidiaries
- Hybrid business of environment and IT
- High accessibility from Tokyo base
- Promotion of long-term management reforms
- Balance of sustainability and technological innovation
- Niche market strengthening despite small scale
- Leveraging strengths from multiple industries
- Stable net profit securing
- Proactive investment stance toward environment
- Utilization of diverse sales channels
Competitive Advantages
- Possesses unique business model fusing environmental energy and IT services
- Demonstrates synergy effects from diverse businesses within the group
- Business expansion contributing to global warming countermeasures such as biomass
- Maintains advanced technical capabilities in IT network support and server operations
- Application of environmentally clean technologies through building maintenance
- Achieves risk diversification and sustainable growth through multifaceted environmental businesses
- Management strategy balancing local community business and national expansion
- Advanced environmental services responding to strengthening environmental regulations
- High transparency IR information provision to investors
- Continuous marketing to improve brand recognition
- Strong existing customer base and wide network of partner companies
- Business efficiency improvement and cost reduction through latest technology introduction
- Opportunities for renewable energy expansion in Asian markets
- Establishment of efficient asset management system as a holding company
- Improved evaluation of corporate stance considerate of social responsibility
Threats
- Intensifying competition in renewable energy market
- Delays in responding to rapid changes in new technologies and services
- Business environment uncertainty due to fluctuations in environmental regulations and policies
- Increasing cybersecurity risks in IT field
- Competitive pressure from major electric power companies etc.
- Risk of suppressed capital investment due to economic fluctuations
- Challenges in talent acquisition and technology succession
- Increased response burden due to diversification of market needs
- Impact of exchange rate fluctuations and rising raw material costs
- Increasing control and coordination costs among group subsidiaries
- Risk of facility damage from natural disasters etc.
- Response to changes in investors' environmental, social, and governance awareness
Innovations
2024: Change of company name to Environment Friendly Holdings
- Overview
- Clearly defined environment-focused management structure and renewed business direction.
- Impact
- Further strengthened focus on environmental-related businesses.
2023: Strengthening of solar power plant construction and operation management
- Overview
- Promoted expansion of solar power generation business centered on Area Energy Co., Ltd.
- Impact
- Achieved strengthened revenue base through expanded operations.
2022: Introduction of biomass energy production technology
- Overview
- Initiated biomass fuel production in collaboration with Australia's BioGam.
- Impact
- Created new business revenue in renewable energy field.
2021: Strengthening of IT infrastructure construction services
- Overview
- Expanded corporate network and server technical support through Connect Co., Ltd.
- Impact
- Contributed to sales growth through increased orders from SMEs.
2024: Introduction of environmentally considerate technologies in building maintenance
- Overview
- Promoted energy-saving cleaning technologies and environmental load reduction activities centered on Tohkan Co., Ltd.
- Impact
- Contributed to improved customer satisfaction and environmental evaluation.
Sustainability
- CO2 emission reduction through expansion of renewable energy adoption
- Promotion of environmentally considerate building maintenance technologies
- Deployment of environmental conservation activities in collaboration with local communities
- Formulation and implementation of long-term environmental load reduction strategies
- Compliance and adaptation to environmental-related laws and regulations