FY2025 Q3 Financial Results & April 2026 Regular Press Conference: President Hayashi's Message

FY2025 Financial Results

• First, I would like to discuss our financial results for FY2025.
• For the fiscal year ended March 2025, consolidated revenue totaled 3.546 trillion yen. This represents a decrease of 123.1 billion yen compared to the previous fiscal year, primarily due to a reduction in fuel cost adjustments and other factors.
• Regarding ordinary income, the company reported an ordinary profit of 291.0 billion yen.
• Although we terminated outsourcing contracts related to operations associated with the review of the Hamaoka Nuclear Power Plant's compliance with new regulatory standards following the discovery of inappropriate practices, and recorded expenses corresponding to work already performed, profits increased compared to the previous fiscal year by 14.6 billion yen, driven by factors such as improved competitiveness in coal procurement for JERA's domestic thermal power business.
• Excluding timing differences, profit was approximately 284.0 billion yen, representing an "increase in profit" of approximately 19.6 billion yen compared to the previous fiscal year.
• Furthermore, net income attributable to owners of the parent company was 227.7 billion yen, representing an "increase in profit" of 25.7 billion yen compared to the previous fiscal year.
  

FY2026 Forecast

• Now, I would like to discuss our business outlook for FY2026.
• Due to factors such as the situation in the Middle East, uncertainty surrounding fuel prices and wholesale electricity market prices—which form the basis of our earnings forecast—has increased. As it is currently difficult to reasonably forecast the financial results for fiscal 2026, we have designated the earnings outlook for fiscal 2026 as "undecided."
• We will promptly announce the forecast as soon as a reasonable calculation becomes possible.
  
• Next, I will talk about dividends.
• Regarding the year-end dividend for fiscal year 2025, we plan to pay 35 yen per share, the same as the interim dividend.
• Regarding the dividend for fiscal year 2026, although the earnings outlook is "undecided," based on our basic policy of maintaining stable dividends, we plan to pay an annual dividend of 70 yen per share, which is the same level as the annual dividend for fiscal year 2025.

• Next, I would like to discuss the key points of the Chubu Electric Power Group's new medium-term management plan.
  Our Group is currently working on formulating a new medium-term management plan covering fiscal year 2026 and beyond.
• In formulating this plan, we must thoroughly assess the direction of our governance reforms and their impact on the plan, taking into account the findings of the investigation committee regarding the inappropriate conduct identified during the review of the Hamaoka Nuclear Power Plant's compliance with the new regulatory standards.
• In light of these circumstances, and in order to provide our stakeholders with an early indication of our Group's management direction prior to the full announcement of the plan, we have decided to publish the "Outline of the New Mid-Term Management Plan" at this time.
• First, regarding the improprieties identified during the review of the Hamaoka Nuclear Power Plant's compliance with the new regulatory standards, while the investigation by the Investigation Committee is still ongoing, we are steadily advancing initiatives to transform ourselves into a company that can once again earn the trust of our stakeholders.
• Going forward, to ensure that such improprieties never occur again, we will examine and formulate further improvement and response measures—including governance reforms—and commit the entire company to their implementation.
• Under our previous Mid-Term Management Plan, we achieved our mid-term management targets despite significant fluctuations in the business environment.
• However, given that our financial results include temporary profit-boosting factors and that the profit contribution from strategic investments is still in its growth phase, we recognize that improving ROE is our top priority moving forward.
• Furthermore, we anticipate that growth opportunities in the energy business will expand due to factors such as the projected increase in medium- to long-term electricity demand driven by GX and DX—developments that were not anticipated when the previous Mid-Term Management Plan was formulated.
• In light of these circumstances, we recognize the need to accelerate initiatives to enhance capital efficiency while managing limited management resources.
• In the new Mid-Term Management Plan, we aim for an ROE of 8% or higher to improve capital efficiency.
• To achieve this, we will work to build a business portfolio that achieves profit growth with the energy business at its core.
• Specific measures will be outlined in the new Mid-Term Management Plan, taking into account the findings of the investigative committee.
• Next, I will explain our vision and the direction of our growth strategy.
• Under the new Mid-Term Management Plan, we will achieve sustainable growth together with our stakeholders by leveraging the Group's strengths—with the energy business at the core—and working to strengthen the energy value chain.
• To realize this, our growth strategy will focus on four pillars—while capitalizing on our strengths—namely, demand creation and stable supply, providing low-carbon and decarbonization value, expanding synergy businesses, and deepening Group management.
• Next, I will explain the direction of our "selection and concentration" strategy, which is central to the new Mid-Term Management Plan.
• First, we will reorganize the previous "Energy" and "New Growth" categories into our core energy business and synergy businesses—including the Multi-Utility Division established on April 1—and strive to optimize the allocation of management resources.
• Furthermore, by setting and monitoring ROIC targets for each business segment, we will implement asset replacement to realize our growth strategy.
• Furthermore, under the Digital Transformation Promotion Division—established on April 1—we will accelerate transformation through investments in digital innovation, thereby driving differentiation and strengthening the competitiveness of our businesses and services.
• Through these initiatives, our long-term goal is for the Energy Business and Synergy Business to converge, and—together with our group companies—to become a company that innovates infrastructure for the future.
• Finally, I would like to explain our shareholder return policy.
• Regarding the direction of our new shareholder return policy, while maintaining our commitment to an optimal capital structure targeting an equity ratio in the mid- to high-30% range, we will review and implement capital policies that also take into account the goal of achieving an 8% ROE over the medium term.
• With regard to dividends, we will establish a policy that uses the current dividend level of 70 yen as a floor and aims to achieve gradual dividend increases in line with profit growth, without being swayed by short-term business performance.
• Furthermore, regarding share buybacks, while steadily implementing investments related to safe and stable supply, we will define our approach regarding the scope, timing, and scale of such buybacks, taking into account the balance with growth investments, and present this in our new Mid-Term Management Plan.
• Based on governance reforms implemented in response to past inappropriate incidents, our Group will continue to provide value to our stakeholders, thereby contributing to the development of a sustainable society and striving to further enhance our corporate value.

• Finally, I now talk about our executive personnel assignments.
• Although the Company transitioned to a new executive structure on April 1, we have today finalized the list of director candidates to be submitted for approval at the Annual General Meeting of Shareholders to be held in June.
• Excluding members of the Audit and Supervisory Committee, the list of director candidates includes seven incumbent directors and two new candidates.
• The new director candidate is Mr. Minoru Yasui, who has served as Senior Managing Executive Officer since April of last year.
• The candidate for a new outside director is Mr. Shinichi Hirose.
• Mr. Hirose possesses extensive experience and broad insight, having been involved in corporate management for many years as an executive at Tokio Marine Holdings and Tokio Marine & Nichido Fire Insurance.
• In addition, Mr. Hashimoto, currently an outside director, will retire at the General Meeting of Shareholders in June.
• This ends my presentation.