Matters Concerning Controlling Shareholders, etc.

Status of Controlling Shareholders, etc.

As of March 31, 2026, Tohoku Electric Power Company holds 39.59% of our voting rights (direct 39.24%, indirect 0.34%), and we are classified as an equity-method affiliate of that company. We belong to the Tohoku Electric Power Group, a corporate group centered on the company which mainly supplies electricity to the six prefectures of the Tohoku region and Niigata Prefecture.

Business Relationship and Independence

We receive electrical construction contracts from Tohoku Electric Power Company and Tohoku Electric Power Network Co., Inc., which account for 2.8% and 44.8%, respectively, of our sales for the fiscal year ending March 2026. Transaction conditions are determined based on market prices and are equivalent to general transaction terms. Furthermore, while we accept 12 seconded employees from Tohoku Electric Power Company, as of March 31, 2026, there are no concurrent officers from that company, and we maintain a certain degree of independence through autonomous decision-making.