January 2025 Regular Press Conference : President Hayashi's Message

• First, I would like to discuss our financial results for the third quarter of FY2024.
• Consolidated net sales for the third quarter of FY2024 totaled 2,651.6 billion yen. Due to a decrease in fuel cost adjustment and other factors, it decreased by 45.5 billion yen year-on-year.
• Ordinary income totaled 222.2 billion yen.
• Income decreased by 214.6 billion yen year-on-year as a result of the reduction in time-lag margins, a decrease in the proportion of power supply procurement through the wholesale electricity trading market in Miraiz, and an increase in expenses related to supply and demand adjustment in Power Grid.
• Consolidated ordinary income excluding the time-lag margins was about 214.0 billion yen, a decrease on the order of 105.0 billion yen year-on-year.
• Quarterly net income attributable to owners of the parent company amounted to 167.1 billion yen, a decrease of 189.9 billion yen year-on-year.

• Now, I would like to discuss our business outlook for FY2024.
• There is no change in our business outlook for FY2024, as we expect approximately the same results as those announced previously on October 29.
• Consolidated net sales are expected to be approximately 3,600 billion yen, consolidated ordinary income is expected to be approximately 275.0 billion yen, and net income attributable to owners of the parent is expected to be approximately 210.0 billion yen.

• Next, I would like to discuss measures to reduce electricity and other burdens in 2025.
• The Group will promptly reflect the business environment in each of its measures.
• Although fuel prices have remained low, the Company recognizes that various potential risks are increasing, including geopolitical risks and changes in the international political situation, as well as rising prices, labor costs, and interest rates.
• Based on this recognition and after a comprehensive review, we have decided to implement measures to reduce the burden of electricity and other costs in FY2025.
• Firstly, I would like to talk about the burden reduction measure for extra high-voltage and high-voltage customers.
• With regard to electricity rates for FY2025, all extra high-voltage and high-voltage customers in the Chubu area will receive a discount of 1.00 yen per kWh from the fuel cost adjustment unit price for the full year.
• This is a comparison of the electricity rate model estimates for each year after FY2023 for the month when the burden reduction measures begin to apply.
• The center shows April 2024 and the right shows April 2025 of the electricity rate model. Since the unit price of fuel cost adjustment for April 2025 is yet to be determined, this calculation is based on the unit price applied in March 2025.
• Although the impact amount of the burden reduction measures will be smaller next year, fuel prices and wholesale electricity market prices remain low, leading to a decline in the fuel cost adjustment, and as a result, the electricity rate models for April 2024 and April 2025 are generally at the same level.
• We will continue our efforts to reduce the burden on customers by providing various customer-oriented services, such as discounts for customers who use electricity efficiently and cooperate in saving electricity during times of tight supply and demand, and energy-saving consultation services.
• Secondly, I will explain the measures to reduce the burden for low-voltage customers.
• As commodity prices continue to soar, we will implement various campaigns to support the lifestyles of our customers, including reducing the burden of electricity rates on mainly residential customers.
• The first is "10% discount on electricity rates during the winter season.”
• In order to allow residential customers to use electrical appliances such as heaters without anxiety even during the winter season when electricity consumption is high, we will offer a 10% discount on electricity rates for the five-month period from December 2025 to April 2026.
• In FY2024, the burden reduction measure applied only to household customers with children or the elderly, and to customers who are starting a new life, such as moving to a new job or moving to a new city. However, in FY2025, all customers who subscribe to electricity rate menus such as the Otoku Plan and other menus launched in April 2016 or later will be eligible for this measure.
• In addition, the period covered will be expanded from three months in the summer in FY2024 to five months in the winter in FY2025.
• Second, customers who newly sign up for electricity or gas because of moving or switching from another company will receive 5,000 KatEne points for each new contract.
• Customers who subscribe to a combined electricity and gas service will receive 10,000 points.
• Third, in order to promote the generation and effective use of renewable energy, we plan to begin accepting new rate menus in April 2025 that will help promote the use of surplus solar power during daytime hours.
• Given that this rate menu is expected to encourage the use of devices such as Eco-Cute that operate during daytime hours, a campaign to support the replacement of Eco-Cute will be implemented.
• In addition to the campaigns introduced today, we will consider further measures to support our customers' lifestyles and will announce them in due course.
  

• Finally, I now talk about our executive personnel assignments.
• As announced in November last year, effective April 1, 2025, Chubu Electric Power will implement organizational changes, including the establishment of the Real Estate Business Division and the reorganization of the indirect management structure.
•  In order to further accelerate our efforts to realize our Management Vision 2.0 under the new organization, a new executive structure was decided today.
• Mr. Toshiharu Sasaki, who is currently treated as Senior Managing Executive Officer and also Vice Chairman of the Federation of Electric Power Companies, will be appointed as the new Executive Vice President.
• Mr. Sasaki will oversee the Corporate Communication Division and Human Resources Division.
• In addition, Mr. Otani, who is currently in charge of the urban development business as the General Manager of the Business Development Division, will concurrently serve as the General Manager of the newly established Real Estate Business Division. With regard to the real estate business, which is an important pillar of the new growth area, he will consolidate and strengthen functions and work on further expansion of the business as a unified group.
• Along with these executive appointments, other changes and appointments are made to effectively utilize each executive's past experience and abilities and to enhance the overall strength of the Company.
• In addition, Mr. Mizutani, the Representative Director, will step down as a director.

(Executive Personnel Changes after the June General Meeting of Shareholders)

• I would like to continue on and talk about the determination of director candidates for approval at the annual shareholders meeting scheduled for June.

(Personnel Changes of Directors Excluding Audit Committee Members)

• The number of candidates for Directors excluding Audit and Supervisory Committee Members is six (6) for reappointment and two (2) for new appointment.
• The new candidate for director is Toshihiro Hayami, who will become Senior Managing Executive Officer on April 1.
• Also, the new candidate for external director is Haruhiko Kato.
• Mr. Kato has a wealth of experience and broad insight, having served in the Ministry of Finance for many years, including as Commissioner of the National Tax Agency, and has also served on the boards of several companies.
• Ms Kudo, currently an external director, will retire at the June general meeting of shareholders.
• In its medium-term management plan announced in FY2022, the Group has set a medium-term management goal targeting FY2025 as the midpoint of its Management Vision 2.0.
• Fiscal year 2025 will be the final year of the plan, and under the new structure described today, I will lead the effort to achieve the goal to the best of our ability.
• This ends my presentation.