Approval of Revenue Outlook for Transmission and Distribution Revenue of our Subsidiary Shikoku Electric Power Transmission and Distribution Co., Ltd.

Overview

Today, the Minister of Economy, Trade and Industry approved the revenue outlook for transmission and distribution charges of Shikoku Electric Power Transmission and Distribution. Going forward, to reflect the approval, we plan to submit a change in the transmission service agreements as of November 2026 to commence the revised transmission charge unit price. The specific impact on consolidated results will be examined based on the content of the contract amendments and reflections in retail electricity rates.

Outlook and impact going forward

The timing of the contractual amendments reflecting the approved transmission charge outlook is scheduled for November 2026. The impact on consolidated results is not yet determined and will depend on the implementation status of the electricity rate revisions and their reflection in retail prices. For investors, the review of transmission charges may indirectly affect profitability and cash flow, but at present, a quantitative impact amount is unknown.