Announcement on the Formulation of the “Medium-Term Management Plan 2030”

Overview of the Medium-Term Management Plan 2030

Shikoku Electric Works Co., Ltd. has formulated the "Medium-Term Management Plan 2030" targeting the five-year period from fiscal 2026 to fiscal 2030. The previous Medium-Term Management Plan 2025 set targets of net sales of 100 billion yen, operating income of 6 billion yen, and ROE of 8%. In fiscal 2024 (fiscal year ending March 2025), the company achieved net sales of 105.8 billion yen, operating income of 8 billion yen, and ROE of 8.2%, achieving the targets one year ahead of schedule. The new plan sets targets for fiscal 2030 of net sales of 120 billion yen, operating income of 11 billion yen, and ROE of 10.0%, with plans to invest 20 billion yen in human capital, 15 billion yen in business investments, and 20 billion yen in shareholder returns.

Key Themes and Capital Policy

The key themes include securing medium- to long-term construction capabilities for sustained growth, expanding construction capabilities in major metropolitan areas, strengthening transmission and distribution facilities in response to increased electricity demand, mitigating risks from rising costs of materials and outsourcing, contributing to the realization of a decarbonized society, creating added value and improving productivity through the use of DX and AI, and practicing ESG management. The shareholder return policy raises the consolidated dividend payout ratio from over 40% to approximately 60%, with a DOE target of around 5.0%. Share Buybacks are being considered going forward from the perspective of improving liquidity.