Notice Regarding the Recognition of Extraordinary Profit and Loss and the Variance Between Full-Year Consolidated Earnings Guidance and Actual Results

Overview of Financial Results

For the fiscal year ending March 2026, Tokyo Electric Power Company Holdings recorded extraordinary gains of 103 billion yen from the sale of affiliated company shares and 81.8 billion yen from grants provided by the Nuclear Damage Liability and Decommissioning Facilitation Corporation. On the other hand, it recorded special losses of 913.8 billion yen related to disaster losses from the Great East Japan Earthquake and 82.7 billion yen for nuclear damage compensation costs. As a result of these impacts, net income attributable to owners of parent was a loss of 454.263 billion yen. Although net sales fell short of the previous forecast, operating income and ordinary income exceeded expectations due to improvements in the timing effects of the fuel cost adjustment system and cost reduction efforts.

Details of Extraordinary Profit and Loss and Revenue Recognition Policy

The gain on sale of affiliated company shares resulted from the partial sale of shares in Kandenko Co., Ltd. The 81.8 billion yen in grants from the Nuclear Damage Liability and Decommissioning Facilitation Corporation was recognized following an amendment application for changes in the amount of financial support based on the Corporation Act. The disaster-related special loss includes costs associated with fuel debris removal preparation work, and the nuclear damage compensation cost represents an increase in estimated compensation. Revenue recognition for financial support is recorded at the time of application, as it is deemed that earnings have been virtually realized by that point.