Regarding the Fiscal Year 2025 Financial Results

Overview of Financial Results

For fiscal year 2025, consolidated financial results showed net sales of 855.9 billion yen (5.1% decrease YoY), operating income of 73.2 billion yen (3.4% decrease YoY), ordinary income of 61.3 billion yen (4.2% decrease YoY), and net income attributable to owners of parent of 43.9 billion yen (31.5% decrease YoY). The decrease in net sales was mainly due to a reduction in fuel cost adjustment amounts reflecting lower fuel prices. Ordinary income declined owing to costs related to efforts for the reactivation of Tomari Nuclear Power Plant as well as increases in labor costs, prices, and interest rates despite the decline in fuel expenses. The financial position improved with total assets of 2,471 billion yen, net assets of 473.6 billion yen, and an equity ratio of 18.5%.

Fiscal Year 2026 Earnings Forecast and Dividends

The consolidated earnings forecast for fiscal year 2026 anticipates net sales of approximately 970 billion yen (an increase of 114 billion yen YoY), operating income of approximately 48 billion yen (a decrease of 25 billion yen), ordinary income of approximately 30 billion yen (a decrease of 31 billion yen), and net income attributable to owners of parent of approximately 22 billion yen (a decrease of 22 billion yen). Net sales are expected to increase reflecting rising fuel prices, while decreases in ordinary income and below are forecasted due to timing effects of the fuel cost adjustment system and rises in labor costs, prices, and interest rates. The dividend policy remains stable with a DOE target of 2%, and the annual dividend on common shares is planned at 33 yen (16.5 yen interim and 16.5 yen year-end), unchanged from fiscal year 2025.