Conclusion of Agreement Regarding Existing Contracts with HINA Co., Ltd. and Notice of Future Low-Voltage Solar Power Business Development

Key Points of the News

An agreement was formalized with HINA Co., Ltd. to confirm receivables and payables and to establish the framework for future performance and handover regarding existing contracts for 119 low-voltage solar power generation facilities. HINA will continue to be responsible for procurement, installation, permits and approvals under its own responsibility, and will proceed with handover upon completion as well as with power sales and asset sales. Advance payments of approx. 894 million yen have been recorded as an extraordinary loss. The company will shift to sales strategies tailored to individual project characteristics going forward, and there is a risk of changes to recovery periods.

Outlook and Impact

This agreement clarifies the framework for performance, completion and handover of construction work. It sets out the settlement process by applying advance payments toward the purchase price and plans to promote monetization through power sales and asset sales. Construction and sales will be carried out sequentially over a target period of three years, with monetization achieved according to progress. The impact on earnings guidance is TBD; any additional disclosures will be published promptly.