Notice Regarding Differences Between Earnings Guidance and Actual Results for Fiscal Year Ending March 2026

Overview of Financial Results

For the fiscal year ending March 2026, consolidated net sales totaled 2,372,420 million yen, which was 3.2% below the previously announced forecast of 2,450,000 million yen. Operating income stood at 160,380 million yen, ordinary income at 126,407 million yen, and net income attributable to owners of parent was 84,975 million yen, each falling short of prior guidance by 27.1%, 33.5%, and 37.1%, respectively. Net income per share was also below the forecast at 169.85 yen.

Reasons for the Differences and Future Outlook

The decline in net sales was primarily due to fuel cost adjustment amounts and a decrease in retail electricity sales volume. On the profit front, while improvements were realized through efficiency initiatives and the lag effect in the fuel cost adjustment system, the results fell below expectations due to the marked-to-market valuation impact of forward electricity transactions and the reduction in retail electricity sales volume. It should be noted that the 56.5 billion yen marked-to-market valuation impact will be reversed in the following fiscal year, resulting in no net income effect over the two fiscal years combined.