Overview of Financial Results for Fiscal Year 2025

Overview of Performance

For fiscal year 2025, consolidated net sales amounted to JPY 220,177 million (down 6.9% YoY). Operating income increased to JPY 9,290 million (up 26.9% YoY), ordinary income rose to JPY 8,167 million (up 44.2% YoY), and net income attributable to owners of parent rose to JPY 6,234 million (up 44.2% YoY), resulting in profit growth. The decline in net sales was mainly due to a decrease in electricity sales volume and the impact of the fuel cost adjustment system in the electricity business. The rise in operating income was supported by reductions in fuel costs and purchases of power from other companies. Electricity sales volume decreased by 1.8% YoY to 7,206 million kWh, and power generation volume decreased by 0.4% YoY to 8,639 million kWh. Capital expenditures increased to JPY 38,158 million compared to the previous year. Although interest-bearing debt increased, the financial structure improved with the equity ratio increasing to 25.0%.

Shareholder Returns and Outlook

Dividends for the fiscal year ending March 2026 are planned at an annual amount of JPY 30 (interim dividend of JPY 15 and year-end dividend of JPY 15). The company aims to maintain a consolidated Dividend on Equity (DOE) ratio of 2.0% or higher; however, the dividend forecast for the fiscal year ending March 2027 remains undecided. The financial outlook for fiscal year 2026 is currently undecided due to uncertainties in resource prices influenced by Middle East geopolitical risks and difficulty in making rational estimates. The company intends to promptly disclose forecasts as soon as they become feasible.