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

Overview of Financial Results for the Fiscal Year Ending March 2026

Consolidated net sales for the fiscal year ending March 2026 were 2,372.4 billion yen, a decrease of 10.3% year-over-year. Operating income was 160.3 billion yen (down 42.8% YoY), and ordinary income was 126.4 billion yen (down 50.8% YoY). Net income attributable to owners of parent was 84.9 billion yen, a decline of 53.5% compared to the previous year. The primary causes of the profit decline included a decrease in retail electricity sales volume, worsened earnings due to changes in market and sales environment, increased supply-demand adjustment costs in the transmission and distribution business, and the posting of mark-to-market losses on electricity forward transactions resulting from sharp rises in fuel prices and electric power market prices caused by worsening conditions in the Middle East. Forward transaction mark-to-market losses are scheduled to be reversed as gains in fiscal 2026, with no net earnings impact over the two fiscal periods combined.

Segment Performance and Future Outlook

In the power generation and sales segment, retail electricity sales volume decreased by 4.4%, resulting in net sales of 1,981.7 billion yen (down 10.0% YoY) and ordinary income of 126.6 billion yen (down 48.4% YoY). The transmission and distribution segment recorded net sales of 921.3 billion yen (down 2.6% YoY) and turned to an ordinary loss of 1 billion yen. Other segments reported net sales of 181.6 billion yen (down 33.9% YoY) and ordinary income of 15.9 billion yen (down 24.2% YoY). The earnings forecast for the fiscal year ending March 2027 remains undecided due to uncertainty over the trends in fuel prices and other factors stemming from deteriorating geopolitical conditions in the Middle East. The dividend policy remains focused on stable dividends, with an annual dividend of 40 yen planned for fiscal 2026 (20 yen interim, 20 yen year-end). The equity ratio improved to 19.4%, indicative of a recovery trend in the financial foundation.