Formulation of Chubu Electric Power Group Mid-term Management Plan

Today, we formulated the "Chubu Electric Power Group Medium-Term Management Plan" (the "Mid-term Management Plan"), which outlines new medium-term management goals for FY2025 and initiatives in each business area, with the aim of realizing the "Chubu Electric Power Group Management Vision 2.0" ("Management Vision 2.0").

The environment surrounding the energy business is at a significant turning point, with major changes in social structure and lifestyles due to the progress of DX and the spread of COVID-19 infection, as well as the acceleration of government policies to achieve carbon neutrality by 2050. Capturing these drastic changes in our business environment as new business opportunities and taking on the challenges boldly, we formulated Management Vision 2.0 in November 2021.

In the Mid-term Management Plan, we have set mid-term management goals of achieving consolidated ordinary income exceeding 180 billion yen in FY2025 as an intermediate point toward achieving the goal of over 250 billion yen in consolidated ordinary income in FY2030, stated in Management Vision 2.0, as well as achieving ROIC of 3.0% or more, by placing greater emphasis on capital efficiency in the execution of strategic investments to achieve sustainable growth.

We will first work to recover profits in our domestic energy business, which is the foundation of the group, to quickly restore the current significantly deteriorated income and expenditures to the pre-FY2020 profit level of around 150 billion yen. Specifically, we will strengthen our market responsiveness by reviewing the power procurement portfolio at Chubu Electric Power Miraiz, while reducing supply and demand adjustment costs at Chubu Electric Power Grid. We will also thoroughly implement cost reductions by strengthening "kaizen activities" throughout the group.

Furthermore, by accelerating strategic investments in global business and renewable energy business, and by acquiring growth potential through shareholdings of JERA, ES-CON Japan and other companies, we will acquire and expand new sources of profitability, aiming to generate profits of about 30 billion yen in FY2025 compared to FY2021 for achieving the mid-term management goals.

We will continue to achieve the mid-term management goals and achieve sustainable growth together with our customers and society as a whole by ensuring compliance and working to reform our business structure with the maximum potential of each and every employee.