Certification of Revision of the Fifth Comprehensive Special Business Plan

Basic Policy and Background of the Fifth Comprehensive Special Business Plan

TEPCO, marking 15 years since the Fukushima Daiichi Nuclear Power Plant accident, formulated the Fifth Comprehensive Special Business Plan (the 5th CSP) and received government certification. The plan is grounded in fulfilling Fukushima responsibilities, aiming to secure funds for compensation and decommissioning while enhancing corporate value. The highly technical and complex fuel debris retrieval operations have entered a full-scale phase, requiring a 12–15 year preparatory period. As a result, a disaster special loss of 903 billion yen was recorded. Changes in the business environment include GX and DX promotion, strengthening energy security, increased electricity demand, and deterioration of financial conditions, prompting fundamental reforms to address these challenges.

Compensation, Decommissioning, and Reconstruction Efforts for Fukushima Operations

Compensation is carried out swiftly and meticulously based on the 'three pledges', strengthening systems to support victims until the last person is covered. Decommissioning has entered a full-scale fuel debris retrieval stage, enhancing owner capabilities and establishing integrated cooperation frameworks with partner companies, prioritizing safety above all. Reconstruction efforts focus on dispelling reputational damage and developing industrial infrastructure while promoting two-way communication with the local community. Organizational integration and reorganization of the Fukushima Daiichi and Daini Nuclear Power Plants and Fukushima Reconstruction Headquarters are also under consideration.

Stable Supply Responsibility and Growth Strategy for Economic Business

In response to GX/DX and energy security demands, TEPCO promotes rapid and push-type power supply, securing decarbonized power sources, and offering diverse pricing menus. Beyond enhancing existing businesses, alliances supplement capital, technology, and capabilities to expand business domains. In particular, the restart of the Kashiwazaki-Kariwa Nuclear Power Plant is advanced with safety as the top priority, along with resuming construction at the Higashidori Nuclear Power Plant and promoting the nuclear fuel cycle business.

Management Rationalization and Asset Sales

TEPCO forecasts approximately 3.1 trillion yen in cost reductions from FY2025 to FY2034 and aims to sell about 200 billion yen in assets principally within 3 years. Capital investment and expense plans undergo rigorous scrutiny of necessity and timing using third-party expertise to promote rationalization. TEPCO Power Grid independently examines maximal rationalization efforts to strengthen its financial base.

Rebuilding Group Business Operations and Strengthening Business Foundations

TEPCO Holdings (corporate) will monitor each business unit’s plan achievement status timely and shift to autonomous responses by each unit. Reconstruction and strengthening of business operations focus on building long-term value creation stories, expediting decision-making, and maximizing group synergies. Cultural transformation, human resource management, and deepening DX strategies are also planned.

Government Involvement and Recovery of Public Capital and Funds

Government involvement maintains the policy of "long-term engagement in Fukushima operations, early independence for economic businesses." The organization exercises strong management and oversight over TEPCO, periodically reviewing balance outlooks and expenditure plans for decommissioning reserves and human resource plans. Annual burdens are about 200 billion yen for compensation and approximately 300 billion yen for decommissioning. Early recovery of public capital and funds will be pursued, utilizing proceeds from sales of shares held by the organization.

Financial Condition and Earnings Outlook

Ordinary income is forecast at 168.3 billion yen for FY2026 and 276.6 billion yen for FY2027. The earnings outlook from FY2025 to FY2034 targets cash flow improvements through rationalization and asset sales. The impact on earnings from the restart of the Kashiwazaki-Kariwa Nuclear Power Plant is estimated to improve results by about 100 billion yen annually.

Requests for Cooperation from Financial Institutions and Shareholders

Financial institutions are requested to maintain credit lines, provide additional credit, and set up short-term loan facilities. Shareholders are asked to accept continuation of dividend suspension and dilution from conversion and sale of shares held by the organization. Further requests will be made in the context of future alliances and reorganizations.