FY2024 Financial Results and April 2025 Regular Press Conference: President Hayashi's Message

FY2024 Financial Results

• First, I would like to discuss our financial results for FY2024.
• Consolidated revenues for FY2024 totaled 3,669.2 billion yen.
• Despite a decrease in fuel cost adjustment and other factors, net sales increased by 58.8 billion yen from the previous year, mainly due to an increase in electricity sales volume and electricity sales volume of other companies.
• Ordinary income totaled 276.4 billion yen.
• Income decreased by 232.8 billion yen compared to the previous year as a result of the reduction in time-lag margins, a decrease in cost reduction effects due to restructuring the power supply portfolio at Miraiz, and an increase in expenses related to supply and demand adjustment at Power Grid.
• Consolidated ordinary income excluding the time-lag was about 264 billion yen, a decrease on the order of 107 billion yen from the previous year.
• Net income attributable to owners of the parent company amounted to 202 billion yen, a decrease of 201 billion yen from the previous year.

FY2025 Forecast

• Now, I would like to discuss our business outlook for FY2025.
• We are concerned about the impact on our Group, including fluctuations in electricity demand in the Chubu area, due to the US tariff policy and other factors, but we have calculated the business outlook for FY2025 based on the information available at this time.
• Net sales are expected to be 3,550 billion yen.
  
• Net sales are expected to decrease by around 119 billion yen from the previous year, mainly due to a decrease in fuel prices and a decrease in fuel cost adjustment, etc., resulting from the strong yen.
• Ordinary income is expected to be 230 billion yen.
• Although there is an increase in time-lag gain and JERA's profits, income is expected to decrease by 46 billion yen compared to the previous year as a result of decrease in cost reduction effects due to restructuring the power supply portfolio at Miraiz and increase in facility-related expenses due to high prices at Power Grid.
• We expect income to be around 210 billion yen with the time lag removed, exceeding our medium-term management target of 200 billion yen or more.
• Net income attributable to owners of the parent company is expected to be 185 billion yen.
• Next, I will talk about dividends.
• We plan to pay a year-end dividend of 30 yen per share for FY2024.
• The annual dividend for FY2025 is expected to be 70 yen per share.
• The income for FY2025 with the time lag removed is expected to be around 210 billion yen, exceeding our medium-term management target, and it has been decided to increase the annual dividend 10 yen per share from FY2024 based on the assessment that the company has earned its “earning power” mainly in the energy business, as well as its approach to shareholder returns, medium-term financial conditions and capital market expectations.
• Although the business and investment environment surrounding our company is expected to remain uncertain due to a variety of heightened risks, including the US tariff policy, we will strive to ensure the level of profit announced today by further strengthening our market responsiveness and reducing costs, as well as by monitoring each business, evaluating investment projects and thoroughly managing risks.

• Next, I would like to talk about the revision of the Chubu Electric Power Group Corporate Philosophy.
• In February 2011, we formulated our corporate philosophy as a compass for our corporate activities, and have been promoting our business operations by reflecting it in our management vision and medium-term management plan.
• On the other hand, the business environment surrounding our company is changing dramatically, with the development of competition and the expansion of our business areas due to the liberalization of the electric power industry as well as the recent formulation of the GX2040 Vision and the 7th Strategic Energy Plan, and our role and social significance are changing accordingly.
• In response to these changes, we have revised our Corporate Philosophy on the 1st of this month, which starts the new fiscal year, to achieve sustainable growth together with our stakeholders.
• The new corporate philosophy firmly inherits the "unchanging mission" of delivering safe, affordable and stable energy, while adding new elements such as "happiness" and "connection" in light of changes in the business environment and the future image of society, to show what our group should aim for.
• Under our new Corporate Philosophy, we will strive to enhance our corporate value and continue to meet the expectations and trust of our stakeholders.

• I will then discuss the Group's initiatives to achieve the medium-term management plan.
• In April 2022, the Group set medium-term management targets for FY2025 as an intermediate point up to Management Vision 2.0.
• Subsequently, the targets were revised in April 2024, and efforts are underway to achieve them.
• In FY2025, which is the final year of our medium-term management target, we expect income to be around 210 billion yen with the time lag removed, exceeding our target of 200 billion yen or more.
• As I mentioned earlier, the business environment surrounding our company is expected to remain uncertain due to a variety of heightened risks, but we will aim to achieve our medium-term management targets by further strengthening our market responsiveness and reducing costs.
• Regarding the outlook for electricity demand in the Chubu area, we had assumed that long-term demand would decline through FY2024, in light of population decline and progress in energy conservation. However, FY2025 sees an upward trend due to the inclusion of new and additional data center projects deemed highly probable among current grid applications.
• In addition to attracting data centers, the entire group will work on measures to create demand related to GX and DX, such as proposing electrification to customers, to further create demand for electric power and contribute to the sustainable revitalization of the Chubu area.
• Regarding further expansion of renewable energy, approx. 35% progress has been made toward our goal of contributing to an expansion of more than 3.2 million kW around 2030.
• At Hamaoka Nuclear Power Station, the reference earthquake motion and reference tsunami were evaluated as generally appropriate, and the station proceeded to the plant review.
• We will continue to work to obtain approval for changes in reactor installation as soon as possible, and we will continue to provide detailed explanations to gain further understanding from the local community and other members of society.
• The new growth areas are being pursued from a medium- to long-term perspective. In FY2024, ES-CON JAPAN in the real estate business and Eneco in the global business together generated approx. 20 billion yen in profits.
• We will continue to accelerate the provision of new value to realize a decarbonized, recycling-oriented society and to respond to the diversifying needs of local communities and customers.
• We have expanded the content to include a quantitative presentation of the Group's past achievements, challenges, and future initiatives, as well as a summary of the status of capital policy implementation and issues to be considered in the future, based on our dialogue with members of the capital market.
• By continuing to provide value to our stakeholders, the Group will strive to contribute to the development of a sustainable society and further enhance our corporate value.
• This ends my presentation.