Fiscal Year 2025 Earnings Presentation Materials

Summary of Performance

In fiscal year 2025, revenues declined to JPY 2,372.4 billion (a decrease of JPY 272.4 billion YoY), ordinary income fell to JPY 126.4 billion (a decrease of JPY 130.3 billion YoY), and net income attributable to owners of parent dropped to JPY 84.9 billion (a decrease of JPY 97.8 billion YoY), marking a second consecutive year of revenue and profit decline. Although the restart of Onagawa Unit 2 contributed positively to earnings, factors such as changes in the market and sales environment, increased supply-demand adjustment costs, and the sharp rise in fuel prices and electric power market prices due to deteriorating Middle East conditions, which impacted the fair value of electric power forward transactions, worsened earnings. The equity ratio improved to 19.4%, while interest-bearing debt increased to JPY 3,479.1 billion.

Future Outlook and Initiatives

The earnings outlook for fiscal year 2026 remains undecided, but dividend forecasts are planned at JPY 20 interim and JPY 20 year-end. Capital expenditures are projected at JPY 422.6 billion, up from the previous year, focusing on improving nuclear power plant utilization rates, strengthening transmission and distribution networks, and advancing strategic investments that contribute to growth. In sales, efforts will be intensified to leverage potential in the eastern Japan area, promote carbon-neutral solutions, and advance initiatives toward the restart of nuclear facilities, all while pursuing management mindful of capital costs and stock prices.