Appeal Against the Mexican Tax Authority

Chubu Electric Power Co., Inc. ("Chubu Electric Power") received a notice of reassessment ("the Notice") ordering the payment of 9,521 million Mexican pesos (Note) (approximately 75.9 billion yen) from the Mexican tax authority on December 17, 2022 for our transaction in which we succeeded our overseas electricity generation and energy infrastructure business to JERA, an equity-method affiliate, as part of the company split on July 1, 2016. (announced on December 19, 2022)

We believe the reassessment is unreasonable and goes against the Japan-Mexico Tax Treaty and Mexican tax law, and have decided today that we will be appealing the reassessment to the authority.

We will swiftly file an appeal as soon as it is ready.

As we are appealing the Notice as described above, we will not recognize a provision for the reassessed amount. This will not affect our financial results at present.

(Note) 1 Mexican peso = 7.97 yen (as of December 16, 2022)