Fiscal Year Ending March 2026 Financial Summary [Japanese GAAP] (Consolidated)

Overview of Business Results

Consolidated net sales for the fiscal year ending March 2026 decreased by 3.4% YoY to 3.546 trillion yen due to a reduction in fuel cost adjustments and other factors. Operating income was 230.042 billion yen (5.0% decrease YoY), however, ordinary income increased to 291.072 billion yen (5.3% increase YoY). Net income attributable to owners of parent was 227.795 billion yen (12.7% increase YoY), achieving profit growth. A special loss of 16 billion yen was recorded for impairment losses of subsidiaries. Excluding timing differences related to fuel prices and others, ordinary income was approximately 284 billion yen, meeting medium-term management targets.

Segment Performance

The Miraiz segment recorded net sales of 2.8592 trillion yen (3.5% decrease YoY) and ordinary income of 137.9 billion yen (increase of 20.9 billion yen YoY). Power Grid segment reported net sales of 928.6 billion yen (3.6% decrease YoY) and ordinary income of 47.5 billion yen, stable compared to the previous year. JERA achieved an ordinary income of 94.1 billion yen (26.8 billion yen increase YoY), reflecting profit growth. Improved competitiveness in fuel procurement and cost-cutting effects contributed to gains across segments.

Overview of Financial Position

Total assets increased by 375.9 billion yen YoY to 6.3579 trillion yen, and net assets rose by 354.2 billion yen to 3.2128 trillion yen, resulting in equity ratio rising to 41.0%. The increase stemmed primarily from higher fixed assets and cash deposits. Total liabilities increased by 173.6 billion yen to 4.4398 trillion yen, influenced by the rise in interest-bearing debt.

Overview of Cash Flows

Cash flow from operating activities increased to 334.4 billion yen compared with the prior year. Investment outflows decreased to 350.7 billion yen, improving free cash flow to a deficit of 16.3 billion yen. Cash flow from financing activities was an inflow of 87.4 billion yen, reflecting an increase in fund procurement.

Outlook for Next Fiscal Year

Earnings guidance for the fiscal year ending March 2027 remains undecided due to heightened uncertainty over fuel prices and wholesale electricity market prices caused by the Middle East situation. The company will promptly disclose results once reasonable assumptions can be made. If the Middle East tensions persist long-term, there may be impacts on electricity demand and fuel procurement.

Other Important Matters

The examination for new regulatory compliance at the Hamaoka Nuclear Power Plant has been suspended due to inappropriate establishment of the standard seismic motion, resulting in related expenses of approximately 8.8 billion yen being recorded. While future developments may affect financial condition and business performance, recoverability of fixed assets is currently judged feasible.