Slide 1: PowerX Q1 FY2026 Financial Results Briefing
PowerX Q1FY2026 Financial Results Briefing PowerX, Inc. May 2026 (Securities Code: 485A) This document is an English translation of the original Japanese document titled “2026 年12月期第1四半期決算説明資料” and is provided for reference purposes only. In the event of any discrepancy between this translation and
Slide 2: Contents
Contents 1. Executive Summary 2. Q1 FY2026 Financial Results 3. Business Highlights 4. FAQ/ Company Overview （ Appendix） Confidential and Proprietary, PowerX, Inc. 1
Slide 3: Executive Summary
Executive Summary The AI-readable version of today’s materials (MD file) can be downloaded here. Q1 YoY: Achieved Revenue and Profit Growth Q1 Full Year Production Progress: 34% Order Backlog as of May:￥89.0 billion *1 （ + ￥8.9 billion since February) QR Market: Strong Tailwinds (Japan and Overseas)
Slide 4: Contents
Contents 1. Executive Summary 2. Q1 FY2026 Financial Results 3. Business Highlights 4. FAQ/ Company Overview （ Appendix） Confidential and Proprietary, PowerX, Inc. 3
Slide 5: Consolidated Financial Summary
FY2026 Q1 > Consolidated Financial Summary Revenue and profit increased year on year. Deliveries from contracted order backlog are concentrated in the second Q1 half, and performance landed in line with expectations. (Unit: Millions of yen) （ Unit: Millions of yen） Actuals ⚫ In Q1, revenue was JPY 1
Slide 6: Production progress and seasonality
FY2026 Q1 > Consolidated Financial Summary While sales are seasonal, production is being leveled throughout the year. Production is progressing steadily, with concerns regarding manufacturing capacity. Production Progress(2) Inventory at Beginning of Period ⚫ By leveling production throughout the ye
Slide 7: Quarterly Revenue, Gross Profit, and Gross Margin Trends
FY2026 Q1 > Quarterly Revenue, Gross Profit, and Gross Margin Trends Delivery timing for contractedbacklog remains concentratedin the second half, and Q1 revenue progressed in line with forecasts. We expectrevenueto increasetowards the secondhalf of the year as inventory is delivered. (Unit: Million
Slide 8: Delivery timing and revenue recognition
FY2026 Q1 > Quarterly Revenue, Gross Profit, and Gross Margin Trends Product delivery dates are agreed upon with our customers at the signing of the purchase order, products are manufactured and ownership is transferred at the date agreed upon in the contract. For customersthat use subsidies, Januar
Slide 9: Segment Performance: gross margins
FY2026 Q1 > Segment Performance Gross marginsare lower for peripheral equipment and higher for our own products. Depending on when and what is delivered, growth margin may seem to fluctuate but it will be consolidated at year’s end. An increase in O&M and electricity sales is expected as accumulated
Slide 10: Segment results: BESS and Power Business
FY2026 Q1 > Segment Performance Strong battery operation services drove 157.4% YoY revenue growth and positive segment profit in the Power Business. (Unit: Millions of yen) FY2025 Q1 FY2026 Q1 Segment YoY Change ⚫ BESS Business: Although profitability appeared temporarily weaker Actuals Actuals due
Slide 11: Quarterly Breakdown and Ratio of SG&A Expenses
FY2026 Q1 > Quarterly Breakdown and Ratio of SG&A Expenses While continuing to invest in necessary sales activities, the Companymaintained disciplined cost control primarily in G&A expenses,contributing to improved operating profit. (Unit: Millions of yen) ⚫ SG&A expenses increased only 1.0% YoY des
Slide 12: Order Backlog (Signed Orders) Trend
FY2026 Q1 > Order Backlog (Signed Orders) Trend Signed Order Conversionof probable orders into signed contractsdrove 87.6% growth in signed order backlog from FY2025 year-end. Backlog +￥32,448 mm Orders Received Revenue Recognized (Unit: Millions of yen) 69,471 60000 50000 7105 11893 47457 10171 -14
Slide 13: FY2026 Order Backlog vs Forecast
FY2026 Q1 > FY2026 Order Backlog (Total of Signed Orders and Probable Orders) Progress against the FY2026 financial forecast reached 93.8% based on signed orders, and 99.7% including probable orders, effectively reaching the full -year forecast. Signed & Probable Orders Expected to Be Recognized in
Slide 14: Consolidated Balance Sheet
FY2026 Q1 > Consolidated Balance Sheet The commitment line was increased to JPY 8.0 billion to support working capital needs toward the second half of the fiscal year. Discussionsare also ongoing regarding funding for the factory through a combinationof equity and borrowings. (Unit: Millions of yen)
Slide 15: Contents
Contents 1. Executive Summary 2. Q1 FY2026 Financial Results 3. Business Highlights 4. FAQ/ Company Overview （ Appendix） Confidential and Proprietary, PowerX, Inc. 14
Slide 16: Order Backlog and Forward Outlook
Order Backlog and Forward Outlook Confidential and Proprietary, PowerX, Inc. 15
Slide 17: Breakdown of backlog by fiscal year
Breakdown of backlog (including probable orders)- by fiscal year Order Backlog: Probable orders for FY27 have grown substantially due to the selection for subsidies. The combined total of signed and probable orders between FY26 and FY30 is projected to reach 89 billion yen. (As of May 14) *1 2026-20
Slide 18: Financial Outlook for FY26 and FY27
Breakdown of backlog (including probable orders) 2026: Order backlog stands at37.9 billion yen (+96% YoY). - by fiscal year 2027: Already secured42.1 billion yen in backlog; performance expected to Financial Outlook for FY26 and FY27exceed current FY levels through additional orders over the next 15
Slide 19: Order Backlog + Active Negotiations with Clients
Projects currently under negotiation with customers*2, which are Order Backlog + Active Negotiations with Clients *1, total 4.8 GWhthrough not yet included in the order backlog Status of Projects under Negotiation for FY302030. We plan to convert these into future orders. (As of May 14) *1 (Unit: bi
Slide 20: Business Updates and Topics
Business Updates and Topics Confidential and Proprietary, PowerX, Inc. 19
Slide 21: Market trends supporting long-term growth in BESS adoption
Market Trends Related to BESS Market trends supporting strong long -term growth in the adoption of battery energy storage systems The balancing market (primary frequency regulation) continues to maintain economic viability as 1 infrastructure investment even after regulatory changes (recent average
Slide 22: Balancing Market Update: Primary Frequency Regulation Results
Market Trends Related to Battery Energy Storage Systems – Update on the Balancing Market Recent Battery Storage Primary Frequency Regulation Trading Results Battery Storage Primary Frequency Regulation Awarded Prices (Daily Average*1)Δ [JPY/ kW・ 30min] 20.00 Previous Price Cap: JPY 19.51/ ΔkW・ 30min
Slide 23: Market trends supporting growth in BESS value
Market Trends Related to BESS Market trends supporting continued medium- to long-term growth in the value of battery energy storage systems The balancing market (primary frequency regulation) continues to maintain economic viability as 1 infrastructure investment even after regulatory changes (recen
Slide 24: Intraday Spot Price Spreads Expanding in FY2026
Market Trends Related to BESS – Update on the Electricity Spot Market Intraday Spot Price Spreads Have Been Expanding in FY2026 Tokyo Area Spot Market Daily Price Spread Market conditions increasingly support the economics Higher Spread Trends (April 2025– April 2026) * (JPY/kWh) of daytime–nighttim
Slide 25: Market trends supporting growth in BESS value
Market Trends Related to BESS Market trends supporting continued medium- to long-term growth in the value of battery energy storage systems The balancing market (primary frequency regulation) continues to maintain economic viability as 1 infrastructure investment even after regulatory changes (recen
Slide 26: Revision of Net CONE Benchmark Price
Market Trends Related to BESS – Update on the Capacity Market Revision of Net CONE Benchmark Price in the Capacity Market Main Auction Capacity Market Main Auction Demand Curve (Illustrative) Net CONE is used as the benchmark price Price (JPY/kW) Total cost of constructing new power generation facil
Slide 27: Market trends supporting growth in BESS value
Market Trends Related to BESS Market trends supporting continued medium- to long-term growth in the value of battery energy storage systems The balancing market (primary frequency regulation) continues to maintain economic viability as 1 infrastructure investment even after regulatory changes (recen
Slide 28: Growing Importance of JC-STAR Certification
Market Trends Related to BESS – Update on Cybersecurity Requirements Growing Importance of JC -STAR Certification and Expansion of Future Compliance Requirements JC-STAR★1 certification will become required for solar power generation and battery storage systems beginning in April 2027 for high -volt
Slide 29: BESS Business Topics
BESS Business Topics Confidential and Proprietary, PowerX, Inc. 28
Slide 30: BESS business: Orders remain robust
BESSbusiness: Topics BESS business: Orders remain robust, driven by energy storage plants, with an increase in large-scale extra-high voltage projects. In the BESS business, an additional 31.5 billion yen in signed orderswas securedover the three-month period since February. Furthermore, projects su
Slide 31: BESS business Recent Press Releases
BESSbusiness Recent Press Releases View Press Releases → Toyota Motor East Japan, Inc. EPCG Suzuyo Shoji Co., Ltd. Chugin Energy Co., Ltd. KuriharantCo., Ltd. 2026.05.08 2026.4.24 2026.04.20 2026.4.9 Number ofMegaPowerunits: 3 Number ofMegaPowerunits: 16 Number ofMegaPowerunits: (TBD) Number ofMegaP
Slide 32: Power Business Topics
Power Business Topics Confidential and Proprietary, PowerX, Inc. 31
Slide 33: Overview of the Power Business
Power Business: Overview PowerX Overview of the Power Business ・ PowerX develops its power business by fully leveraging its position as a battery storage system manufacturer. ・ Vertical integration of power, aggregation, and assets enables the delivery of economical and stable services. ・ In additio
Slide 34: Power Business: Topics
Power Business: Topics Power Business: Strong adoption of power plant operations and electricity retail services; battery hardware sales pipeline also expanding In addition to contracts for power plant operations and electricity retail services, discussions for battery hardware sales bundled with fu
Slide 35: PowerX Overseas Go-to-Market Strategy
PowerX Overseas Go-to-Market Strategy Confidential and Proprietary, PowerX, Inc. 34
Slide 36: Overseas Go-to-Market Strategy: target market criteria
PowerX Overseas Go-to-Market Strategy Target Market Selection Criteria Large Total Addressable Market The market has sufficient addressable scale and clear demand for battery energy storage systems. Attractive Competitive Landscape Competition is relatively limited, making it easier for PowerX to es
Slide 37: Trends in the European Battery Energy Storage Market
Trends in the European Battery Energy Storage Market In Europe, critical infrastructure sectors, including battery energy storage systems, are increasingly required to implement robust security measures. At the same time, EU -funded projects are moving toward restrictions on the use of control equip
Slide 38: MOU with Montenegro's EPCG on BESS
PowerX Signs MOU with Montenegro’s National Utility EPCG for Strategic Cooperation on BESS Strategic cooperation centeredon BESS, with potential expansion into containerizedcenters data and EV charging platforms BESS deployment of 500 MWh over the first three years, 200 MWh per year with an indicati
Slide 39: Montenegro's Energy Strategy and the Need for BESS
Montenegro’s Energy Strategy and the Need for BESS Solar 2% Future Outlook The “Energy Highway,” which carries electricity from ~2030 6 east to west, will pass through Montenegro* Wind １1% Rapidly increase the share 2 Montenegro’s TSO is expected Romania of renewable energy* to generate cross -borde
Slide 40: Scale of BESS Demand PowerX Aims to Capture
Scale of BESS Demand PowerX Aims to Capture (MWh/year (2027 -2030))* 1 • With Montenegro as the anchor base, our initial goal is to capture the demand in the Balkan countries (up to 600MWh). • Leveraging the geographical advantages of Montenegro's maritime and land transportation infrastructure, we
Slide 41: From Montenegro to the Western Balkans and Beyond
From Montenegro to the Western Balkans, Southern Italy, Bulgaria, Greece, and Beyond Zagreb (Croatia） Strategic Rationale for the MOU with EPCG, Belgrade（ Serbia） Montenegro’s State -Owned Utility ⚫ Securing a national-level dialogue partner in Europe Sofia（ Bulgaria） Pristina（ Kosovo） ⚫ Montenegro’
Slide 42: Calculation Process for BESS Demand
Reference: Calculation Process for BESS Demand PowerX Aims to Capture Demand PowerX Aims to Capture by 2030 Calculation Logic Source per country in MWh per year Montenegro 200MWh MoU本文はこちらから： Over the initial three years, we aim to consider the deployment of BESS with an estimated baseline of approx
Slide 43: Calculation Process for BESS Demand (2)
Reference: Calculation Process for BESS Demand PowerX Aims to Capture(2) Demand PowerX Aims to Calculation Logic Source Capture by 2030 per country in MWh per year Romania 125MWh According to the Romanian Solar Industry Association, a realistic BESS target for Romania by 2030 is 2 GWh (1 GW). *1 htt
Slide 44: Expansion into Southeast Asia, South America, and Africa
Targeting Expansion into Southeast Asia, South America, and Africa, in Addition to Eastern Europe Starting with Eastern Europe, PowerX aims to enter Southeast Asia, Africa, and E. Europe South America based on the target market selection criteria outlined earlier. S.E. Asia Africa S. America Confide
Slide 45: PowerX Data Center Products
PowerX Data Center Products Confidential and Proprietary, PowerX, Inc. 44
Slide 46: PowerX Data Center Products
PowerX Data Center Products Announced in February 2026 Announced today Mega Power DC Confidential and Proprietary, PowerX, Inc. 45
Slide 47: Packaged Offering with Dell Technologies Integrated Rack Solutions
Modular Data Center Business ： Topics Modular Data Center Business： Packaged Offering with Dell Technologies Integrated Rackolutions S • Currently evaluating a packaged offering combined with Dell Technologies integrated rack solutions. • Planned to offer optimized rack configurations tailored to th
Slide 48: PowerX Data Center Products
PowerX Data Center Products Announced in February 2026 Announced today Mega Power DC Confidential and Proprietary, PowerX, Inc. 47
Slide 49: Data Center Power Demand Expected to Increase Worldwide
Power Demand related to Data Centers is Expected to Continue Increasing Worldwide, Driving an Urgent Need to Address o Pwer Supply Challenges. EU Data center-related demand is expected to the US account for approximately Japan Data center-related demand is By 2050, data center -related expected to a
Slide 50: PowerX's Vision
PowerX’s Vision For a Sustainably Prosperous Future Conducted extensive research on the theme of: “How to address the energy challenges arising from the rapid growth of data centers.” Confidential and Proprietary, PowerX, Inc. 49
Slide 51: Core Concept of Our Demonstration
Core Concept of Our Demonstration QR Grid Event → Demand Load Suppression Batteries Reduced power consumption Power Reduced compute Power Maintaining compute throughput throughput Computer Computer Confidential and Proprietary, PowerX, Inc. 50
Slide 52: Proof-of-Concept Demonstration
Our Initiatives to Address Data Center Power Challenges – Proof-of-Concept Demonstration Test Bench 1. The Grid Simulator artificially reproduces a grid event, such as a simulated TSO command or an event that mimics the Experimental equipment assembled at our Configuration automatic detection of a f
Slide 53: Results of Power Discharge and GPU Power Suppression
Results of Power Discharge and GPU Power Suppression QR During Grid Events Confidential and Proprietary, PowerX, Inc. 52
Slide 54: Operational Log During Grid Events (1)
Proprietary Software: Operational Log During Grid Events (1) QR Confidential and Proprietary, PowerX, Inc. 53
Slide 55: Operational Log During Grid Events (2)
Proprietary Software: Operational Log During Grid Events (2) QR Confidential and Proprietary, PowerX, Inc. 54
Slide 56: Findings and Conclusions from the Demonstration
Findings and Conclusions from the Demonstration QR Findings & Conclusions ⚫ The experiment suggests that, by utilizing high -capacity, high-output battery storage systems and DC control equipment for servers, AI infrastructure can respond to power grid events without sacrificing computational perfor
Slide 57: PowerX Energy Blade 2027
VISION : PowerX Energy Blade 2027 Confidential and Proprietary, PowerX, Inc. 56
Slide 58: PowerX Energy Blade
PowerX Energy Blade Rack-mounted energy storage for faster grid connection and more AI per connection. Confidential and Proprietary, PowerX, Inc. 57
Slide 59: PowerX Energy Blade Rack
PowerX Energy Blade Rack Confidential and Proprietary, PowerX, Inc. 58
Slide 60: PowerX Energy Blade Rack
PowerX Energy Blade Rack Confidential and Proprietary, PowerX, Inc. 59
Slide 61: PowerX Energy Blade
PowerX Energy Blade Confidential and Proprietary, PowerX, Inc. 60
Slide 62: PowerX Energy Blade
PowerX Energy Blade Confidential and Proprietary, PowerX, Inc. 61
Slide 63: Rack-mounted Battery System for Data Centers
Rack-mounted Battery System Delivering up to 48 kWh, 120 kW, and 800 V DC for Data Centers PowerX Energy Blade PowerX Energy Blade Rack （ Blade-Type Battery System ） （ Rack-Type Battery System ） A highly scalable, modular high -output ORV3 blade By integrating 16 Blade modules into a single rack, ba
Slide 64: Creating New Revenue Streams for Data Center Operators
Creating New Revenue Streams for Data Center Operators while Supporting Faster Grid Interconnection Benefit 1 Benefit 2 Benefit 3 New Revenue Faster Grid Greater Use of Opportunities Interconnection Renewable Energy Value Generate new revenue through ancillary Optimize peak grid demand to support fa
Slide 65: New Revenue Opportunities through Ancillary Services
New Revenue Opportunities for Existing Data Centers through Ancillary Services Market Participation Rack-type battery systems detect frequency fluctuations and respond at high speed, enabling data centers to participate the primary ancillary services market. PowerXestimate: data center equipped with
Slide 66: Service launch scheduled for 2027
⚫ Service launch scheduled for 2027. ⚫ We will also begin recruiting strategic partners for the implementation of this solution. ⚫ Deployment will be carried out with global expansion in mind. Confidential and Proprietary, PowerX, Inc. 65 65
Slide 67: PowerX Data Center Products
PowerX Data Center Products Mega Power DC PowerX Energy Blade Modular data center Rack-type Battery System Blade-type Battery System (ESS integration available ） Confidential and Proprietary, PowerX, Inc. 66
Slide 68: Contents
Contents 1. Executive Summary 2. Q1 FY2026 Financial Results 3. Business Highlights 4. FAQ/ Company Overview （ Appendix） Confidential and Proprietary, PowerX, Inc. 67
Slide 69: FAQ / Stock Options
FAQ/ Stock Options Confidential and Proprietary, PowerX, Inc. 68
Slide 70: FAQ: raw material prices and supplier country risk
Q. What is the outlook for raw material prices for the fiscal year ending December 2026? A. At the time of the announcement of our-year full financial results for the fiscal year ended December 2025, we announced the possibility of rising raw material prices due to increasing lithium prices and fore
Slide 71: FAQ: Mega Power DC orders, lock-up, shareholder returns
Q. What is the status of orders for "Mega Power DC"? A. Although we have only recently commenced operations and have not yet secured any formal orders, we are currently in discussions with several companies regarding potential implementation. Q. What is the stock price outlook following the expirati
Slide 72: Regarding the Issuance of Stock Options
Fiscal Year Ending December 2026,First Quarter > Regarding the Issuance of Stock Options To strengthen our commitment to short -to medium-term business performance and share price growth, the Board of Directors resolv ed at today’s meeting to issue stock options to our executive officers and employe
Slide 73: Company Overview
Company Overview Confidential and Proprietary, PowerX, Inc. 72
Slide 74: Company Overview
Company Overview Company PowerX, Inc. Founded March 22, 2021 Representative Masahiro Ito, Director, President & CEO Headquarter / Factory: Tai 6-9-1, Tamano, Okayama, Japan Tokyo Office: Locations Midtown Tower, 43F, 9-7-1 Akasaka, Minato-ku, Tokyo Annex / Show Room: AXALL ROPPONGI 2F,-68Roppongi, M
Slide 75: Directors & Executive Officers
Appendix Directors & Executive Officers Corporate Executive Officer Director, President & CEO Engaged in audit and consulting work at Deloitte Tohmatsu and KPMG. As CFO of FoundedYappa Inc. in 2000. Joined the ZOZO Group through M&A and CFO two operating companies, led both to listings on the Tokyo
Slide 76: Vision and Mission
Vision Mission For a Sustainably Achieving Japan’s Prosperous Future Energy Independence Confidential and Proprietary, PowerX, Inc. 75 75
Slide 77: PowerX's Main Businesses
Business Overview *Please note that core business areas represent the businesses in wh the Company strategically focuses on and may differ from segment PowerX’sMain Businesses information disclosed in accordance with accounting standards. Main Businesses New Business Modular Data Center BESS Busines
Slide 78: Product Lineup
Business Overview Product Lineup PowerX PowerX PowerX Cube / Mega Power DC Mega Power Mega Power Hypercharger 2700A 2500 (+PX PCS 100) 358kWh /Mid-size storage battery Modular data center 2.7MWh 20ft container sized BESS 2.5MWh 10ft container sized BESS Battery Integrated Ultrafast EV charger (ESS i
Slide 79: Battery Power Plants
Battery Power Plants* *Since May 2022, when the Electricity Business Act was amended, energy storage systems with an output of 10 MW or ectly more connected and dir to the power grid have been treated as “power plants.” PowerX defines these-scale grid storage systems as “battery power plants.” Confi
Slide 80: What is a Battery Power Plant?
BusinessOverview > Battery Power Plants • Utilizes large-scale battery systems to charge and discharge electricity to and from the What is a Battery power grid, contributing to grid stability while generating revenue • This bidirectional capability enables effective supply –demand balancing and crea
Slide 81: Key Components of a Battery Power Plant
BusinessOverview > Battery Power Plants Key Components of a Battery Power Plant Switchgear ESS Control Panel Protection, isolation, and metering Centralized monitoring and control of incoming utility power of the BESS. BESS Battery energy storage system to charge /discharge power as needed Transform
Slide 82: Deployment and Operation of Battery Power Plants
BusinessOverview > Battery Power Plants Deployment and Operation of Battery Power Plants System development and operations for battery power plants are provided on an integrated basis through vertical integration. *1 Development and Operation of Battery Power Plants Order BESS*2 TR*2 Transportation
Slide 83: Power business utilizing battery storage systems
Power business utilizing battery storage systems Confidential and Proprietary, PowerX, Inc. 82
Slide 84: PowerX Power Business Overview
Business Overview > Power business utilizing battery storage systems PowerX Power Business Overview • Leverages its position as a battery system manufacturer to expand into the power business • Delivers cost-efficient and stable services through vertical integration of power, aggregation, and assets
Slide 85: Modular Data Center
Modular Data Center Confidential and Proprietary, PowerX, Inc. 84
Slide 86: Mega Power DC
Business Overview > Modular Data Center Press Movie New Business: Modular Data Center “Mega Power DC” launched; available from February 13, 2026 Modular Data Center NEW Mega Power DC Containerized Data Center Low cost, fast deployment – without construction hurdles Integrated Energy Storage System I
Slide 87: Mega Power DC: Technologies Supporting Stable Operations
Business Overview > Modular Data Center Mega Power DC: Technologies Supporting Stable Operations Closed-Loop Liquid Cooling for High Efficiency and Stability As server performance and rack power densities continue to increase, data centers require more precise and reliable cooling. Mega Power DC is
Slide 88: Mega Power DC Scalability and Flexibility
Business Overview > Modular Data Center Mega Power DC Scalability and Flexibility Large-scale Power Plant 1,000MW Power Received Container IT racks＊ 25MW 125 750 Battery Power Plant・ Renewable Power Plant 2~20 MW Power Received Container IT racks* 0.2~2 MW 1~10 6~60 Edge Location Research institutes
Slide 89: Modular Data Center Business Model (Phase 0)
Business Overview > Modular Data Center Modular Data Center Business: Business Model (Phase 0) GPU CPU Storage ESS Outsource Model Turnkey Sales Model Further Growth Opportunities (undisclosed) Equipment selection / outsourced manufacturing Place orders ◼ Additional investments may be made Manufactu
Slide 90: Market Environment
Market Environment Confidential and Proprietary, PowerX, Inc. 89
Slide 91: Value Provided by Energy Storage and the Electricity Market
Market Environment The Value Provided by Energy Storage Systems and the Electricity Market Value per kWh kW Value ΔkW/ΔkWhValue Energy (kWh) Provision of capacity(kW) for a Providing balancing power(Δ) Time Shift fixed period to match electricity supply and Use Case: (Increased output or reduced dem
Slide 92: Update on the Supply and Demand Balancing Market
Update on the Supply and Demand Balancing Market Confidential and Proprietary, PowerX, Inc. 91
Slide 93: Changes to the Supply and Demand Balancing Market
Market Environment Changes to the Supply and Demand Balancing Market (April 2026–) ①Revision of Bidding Rules ②Revision of the Offer Volume (σ) (3) Revision of the Price Cap σ= An indicator that reflects fluctuations in demand Before Change After change and renewable energy output forecasts Illustra
Slide 94: Battery Storage Primary Control Capacity Transaction History
Market Environment Current Battery Storage Primary Control Capacity Transaction History (Comparison Before and After System Changes) *1 ) [JPY/ΔkW·30 min] Storage Battery Primary Regulation Bid Price (Daily Average 20.00 Previous Price Cap:19.51yen/ΔkW·30 min Before System Change 18.00 (February 202
Slide 95: Need for Adaptability in the Medium to Long Term
Business Environment Update Our View on the Need for Adaptability in the Medium to Long Term Forecast for Japan's Power Generation *1 Mix • In the future, installed capacity will decrease due to aging, plant shutdowns, and decommissioning *2 • If electricity demand increases due to industries such a
Slide 96: Market Size for Grid-Connected Storage Batteries
Business Environment Update Driven by the expansion of renewable energy adoption and Market Size for Grid-Connected Storage Batteries growing demand from data centers, the deployment of energy storage systems is expected to continue, and the market size Market Size (TAM) for grid-connected storage b
Slide 97: TAM Calculation Method 1/2
Business Environment Update Market Size (TAM) for Grid-Connected Storage Batteries: Calculation Method1/(2) We define the "Main Scenario" as one in which constraints are set to align with the targets of the 7th Basic Energy Plan. Additionally, we assume a "Self -Sufficiency Improvement Scenario" as
Slide 98: TAM Calculation Method 2/2
Business Environment Update Market Size (TAM) for Grid-Connected Storage Batteries: Calculation Method2/2) ( The simulation results for the two power mix scenarios from 2030 to 2050 are shown below. Based on these results, the installed capacity of grid -scale storage batteries by 2030 is calculated
Slide 99: Trends in the Wholesale Electricity Market (JEPX)
事業環境アップデート Trends in the Wholesale Electricity Market (JEPX) Driven by the Middle East Situation 98
Slide 100: Iran Escalation Drives LNG Price Surge
Business Environment Update Iran Escalation Drives Strait of Hormuz Closure and LNG Price Surg LNG (Platts JKM) Futures Composite Chart • Amid the Iran crisis, Qatar’s Ras Laffan facility was hit 1 by a drone attack, causing LNG production to halt.* • Qatar Energy declared force majeure on March1 4.
Slide 101: Recent Trends in Japan's Wholesale Electricity Market
Business Environment Update Recent Trends in Japan’s Wholesale Electricity Market (JEPX) Tokyo Area Price by 30 -Minute Trading Market Prices from Feb. 15 to Apr. 12, 2026 Period on Apr. 3, 2026 60.00 30.00 Above ¥50 at night Tokyo Area Price, 24 -hour average 50.00 25.00 20.00 40.00 15.00 30.00 10.
Slide 102: Daily Price Spreads Continue to Widen
Business Environment Update Daily Price Spreads Have Continued to Widen Since the Start of FY202 Tokyo Area, April 2025– April 2026 Larger Spread Daily Spread in Market Prices (¥/kWh)* 60.00 Market conditions are Day-night price becoming increasingly 50.00 spread reaching up to favorable for BESS to
Slide 103: Driver of JEPX Spreads: Rising Marginal Costs
Business Environment Update Driver of JEPX Time -of-Day Price Spreads②: Rising Marginal Costs * The rules for calculating marginal costs were revised in 2021. • As post-COVID demand recovered, LNG spot prices ¥/kWh surged. • Long-term LNG became more profitable to resell than Demand to use for power
Slide 104: Driver of JEPX Spreads: Increase in Block Bidding
Business Environment Update Driver of JEPX Intraday Price Spreads ②: Increase in Block Bidding Tokyo Area Price by 30 -Minute Trading Period on Apr. 3, 2026 Illustration of Thermal Power Block Bidding 60.00 Bid Volume 50.00 9:00-9:30 Because thermal power plants cannot start or stop operations in 40
Slide 105: Capacity Market Update
Business Environment Update Capacity Market Update 104
Slide 106: Revision of Net CONE Reference Price
Business Environment Update Revision of Net CONE as the Reference Price for the Capacity Market Main Auction Capacity Market Main Auction Demand Curve Illustration Net CONE is used as the reference price Price (¥/kW) Total cost of new generation investment − revenues from other markets such as the k
Slide 107: Demand-Side Trends and Upcoming GHG Protocol Revisions
Business Environment Update Demand-Side Trends and Upcoming GHG Protocol Revisions 106
Slide 108: GHG Protocol Revision Increasing Hourly Matching Requirements
Business Environment Update GHG GHG Protocol Revision Protocol An international standard for calculating greenhouse gas emissions. For listed companies in Japan, GHG emissions disclosed as part of Increasing Requirements for Hourly Matching sustainability reporting are calculated in line with the GH
Slide 109: Business Environment Update Summary
Business Environment Update Summary ・ Balancing Market Trends 1. Unit prices are stabilizing at around ¥15. 2. Demand for balancing capacity is expected to grow, driven by data centers, electrification, and renewable energyon. expansi ・ Wholesale Electricity Market Trends 3. Fossil fuel price volati
Slide 110: Cybersecurity for BESS
Cybersecurity for BESS JC-STAR Certification Adopted as a Grid Code Requirement 109
Slide 111: JC-STAR Certification Requirements
JC-STAR Certification: Growing Importance and Expanding Implementation Requirements JC-STAR★1 certification will be required for high -voltage systems from April 2027, and for low -voltage systems from October 2027, for both solar power generation and battery storage equipment. In addition, the gove
Slide 112: AI Data Center Demand Growth
AI Data Center Demand Growth Confidential and Proprietary, PowerX, Inc. 111
Slide 113: Aging Population, Labor Shortage and AI Utilization
AI Data Center Demand Growth Declining Birthrate, Aging Population, and Worsening Labor Shortage —the Potential for AI Utilization Estimated Work Hour Reduction *1 Japan's Advancing Aging Society *2 Estimated Labor Shortage in Japan *3 Through AI Utilization （ 2035 Forecast） (10K） 2025 2030 2035 Age
Slide 114: Job Vacancy Rate by Occupation and AI Replacement
113 ×100 (%) Carrying, Cleaning, and Packaging Workers 運搬・清掃・包装等従事者 Worof June Construction 建設・採掘従事者 and Mining Workers as of End / Regular 6.7% —yet AI replaces jobs in finance, IT, and professional sectors first Transport and Machine Operation Workers 輸送・機械運転従事者 Labourand Welfare (MHLW), "Employme
Slide 115: Where AI Delivers Most: Critical Infrastructure
AI Data Center Demand Growth Where AI Delivers Most —Critical Infrastructure and Its Core Operations AI is replacing"core operations"in financial institutions, a critical infrastructure sector Japan's Financial Regulator Urges Banks to Use AI for Core Operations AI is also expected to replace "core
Slide 116: Physical AI: Extending Automation to the Real World
AI Data Center Demand Growth Physical AI: Extending Automation to the Real World Physical AI Manufacturing & Logistics AI that autonomously executes • Irregular parts picking "perception → judgment → action" in the real world • Assembly assistance • Night & hazardous operations Not an extension of H
Slide 117: Japan's AI Computing Gap
AI Data Center Demand Growth Japan's AI Computing Gap: Over 100 ×Behind the U.S. 2024 2024 AI Server Power Capacity * (Within Total Data Center Capacity) ~ 7.9 GW ~0.07 GW 100×Gap Domestic compute capacity = National competitiveness * For total data center power capacity in the United States, please
Slide 118: IT Investment and AI Computing: Dependency vs. Autonomy
AI Data Center Demand Growth IT Investment and AI Computing: Dependency vs. Autonomy Three Possible Scenarios Going Forward ①Developing Domestic Computing Infrastructure Industry IT Investment: U.S. -Japan Comparison Domestic IT Investment Acceleration Scenario *Indexed growth rate (2010 = 100) Comb
Slide 119: Stranded Renewables: Generation Potential vs. Grid Constraints
AI Data Center Demand Growth Stranded Renewables: Generation Potential vs. Grid Constraints Japan has renewable energy potential alone that is up to twice the country's total electricity supply capacity*1 However, in regions like Hokkaido and Kyushu, excess capacity cannot be fully utilized, making
Slide 120: From Watts to Bits
AI Data Center Demand Growth Install data centers at optimal generation sites, convert electricity (Watts) From Watts to Bits into computational value (Bits), and transmit to demand centers —solving transmission capacity constraints Optimal Generation Sites Demand Centers (Hokkaido / Kyushu) (Tokyo
Slide 121: Data Center Operations During Power Shortages: Overseas Cases
Data Center Operations During Power Shortages: Oversea Cases
Slide 122: Global Trend: Power-Coordinated Workload Management
Data Center Operations During Power Shortages: Global Case Studies Global Trend : Power-Coordinated Workload Management Demonstrations of workload management coordinated with power systems are advancin ＊Source： national grid Case : UK Demonstration Power-Flexible AI Factories National EPRI Emerald A
Slide 123: UK Case Study: Grid-Following AI Data Centers
Data Center Operations During Power Shortages: Global Case Studies UK Case Study: Grid -Following AI Data Centers • IT equipment workload management that follows power supply conditions • While power-following shows promising results,consumption curtailment may lead to reduced utilization and SLA de
Slide 124: Advancing Data Center Deployment
Advancing Data Center Deployment The Future of Data Centers Confidential and Proprietary, PowerX, Inc. 123
Slide 125: Data Center as a Grid Asset
The Future of Data Centers Data Center as a Grid Asset • Data centers are evolving from Gridoads L to Grid Assets • Power-following data centers become contributors to the power grid Before: Grid Load Future: Grid Asset Grid Grid Data centers adapting to power conditions Power capacity constantly re
Slide 126: Data Center × BESS: Grid Connection Flexibility
The Future of Data Centers Data Center×BESS:①Grid Connection Flexibility For new data center connections, power capacity must be secured 24 hours ×365 days at all times (firm capacity). When power capacity is insufficient, the following options ①or ②are required, both leading to lost economic opport
Slide 127: Data Centers × Battery Storage: Flexible Grid Interconnection
The Future of Data Centers Data Centers×Battery Storage①Flexible Grid Interconnection By combining datacenterswith BESS, electricity can be supplied from the battery during temporary or momentary reductions in grid capacity. This enables data centersto respond flexibly to grid conditions, including
Slide 128: Japan's Power Grid and Power Quality
The Future of Data Centers Japan’s Power Grid and Power Quality The grid is composed of Eastern and Western frequency areas and multiple voltage levels. Extra-high voltage 500KV, 275KV, 154kV Eastern Japan (50hz) High voltage 66KV, 22KV Medium voltage 6,600KV Low voltage 200V, 100V Western Japan (60
Slide 129: What Is the Balancing Market?
The Future of Data Centers Electric Power ReserveeXchange (EPRX) What Is the Balancing Market? A general incorporated association whose members are Japan’s transmission and distribution operators. Trading began in April 2021, following the establishment of its predecessor association Balancing capab
Slide 130: Data Centers × BESS: Balancing Contribution and Compensation
The Future of Data Centers Data Centers×BESS②Balancing Contribution and Compensation By using battery storage, data centerscan control power consumption in response to grid conditions while maintaining IT power consumption. This contribution can be recognized as balancing capability, enabling revenu
Slide 131: Competitive Advantages
Competitive Advantages 130
Slide 132: Grid-Scale Battery Subsidy Program Results
Competitive Advantages FY2024–2025 Results: Grid-Scale Battery & Water Electrolysis System Subsidy Program* PowerX has consistently achieved strong selection results for two consecutive years under a government subsidy program supporting grid-scale batteries and water electrolysis systems. 2025 Adop
Slide 133: Competitors
Competitive Advantages Competitors PowerX is the only BESS supplier in Japan that meets all key requirements for Battery Power Plants, including JC -Star, local manufacturer support and Japan -based data hosting. *2*3 Product / Service Lineup of BESS Suppliers in Japan (as of March 12, 2026) ESS PMS
Slide 134: In-house developed, designed, and packaged BESS
Competitive Advantages In-house developed, designed, and packaged BESS Container-type Cloud-based Inside the Energy Storage System BESS energy management system Energy Cell BMS Trading (single battery) Battery Management System PMS Network Remote Monitoring Power Management System IoT etc. & control
Slide 135: Made in Japan Promise
Competitive Advantages “Made in Japan” Promise: Ensuring the Highest Level of Security through Vertically Integrated, In-house Developed Software and JC -STAR Certification Made In Japan Promise* *The “Made in Japan Promise” reflects the belief that secure electricity infrastructure is achieved thro
Slide 136: Production Facilities and Business Locations
Competitive Advantages Manufacturing of all products at one of Japan’s largest-scale grid Production Facilities and battery production plants in Okayama. Production capacity to be Business Locations expanded to approximately7.5 GWh annually by 2029*1. Power Base(HQ/Factory) Power Base Hokkaido (from
Slide 137: Track Record of BESS Deployments
Competitive Advantages Track Record of BESS Deployments Installed 2,952 MWh Mega Power 2700A Mega Power 2500 PowerX cube Tohoku Electric Power Shikoku Electric NTT Anode Energy Co. Inc & Mizuho Chubu Electric Power Power Co., Inc. & Corporation Lease Company, Miraiz Co., Inc. Imabari Shipbuilding Li
Slide 138: BESS Installations by Prefecture
Competitive Advantages Prefecture Sites Capacity Application Extra-high V Status Planned:5 Prefecture Sites Capacity Application High V Status Planned:2 Installed: 1 Aichi 6 20.3 MWh Installed: 3 High V Demand-side BESS Installations by Prefecture Hokkaido 9 569.6 MWh Planned:1 Planned:1 Installed:
Slide 139: Extra-High Voltage Battery Power Plant Deployment Example
Competitive Advantages Extra -High Voltage Battery Power Plant Deployment Example Kansai Area– Example Project 13 MW / 54.8 MWh Extra -high voltage battery power plants 24 locations Total capacity: 2,087.9 MWh As of Feb5 , 2026 Confidential and Proprietary, PowerX, Inc. 138
Slide 140: Accelerating Deployment: 7x Productivity Improvement
Competitive Advantages Accelerating Deployment: 7x Productivity Improvement YoY While the scale of projects is increasing, the efficiency of our technical team is also improving, December and in of last year, the installation and implementation efficiency perPM increased by more than seven times Fac
Slide 141: Mega Power: Deployment Examples
Competitive Advantages Mega Power: Deployment Examples MIRARTHAsset Management Marubeni NTT Anode Energy | Fukuoka Wakamatsu Storage Facility MSB Kanagawa Aikawa Energy Storage Facility Mitsumine -Ina Energy Storage Facility Aikawa, Aiko District, Kanagawa Prefecture Nagano Prefecture Kitakyushu Cit
Slide 142: Power Supply Case Using Battery Storage
Competitive Advantages Power Supply Case Using Battery Storage (PowerX Power Business) Supply of renewable electricity using battery storage to Saga Tekkosho factory PowerX Corporate Power Offering: “Advanced Plan” Corporate power supply service “Advanced Plan” In addition to power sources such as w
Slide 143: Battery Storage Aggregation Case
Competitive Advantages Battery Storage Aggregation Case (PowerX Power Business) Power Supply Service Utilization of battery storage Retail electricity provider & aggregator Fixed fee MSB(MIRARTH Storage Battery) JEPX MSB Kanagawa Aikawa Battery Farm Market transactions EPRX OCCTO • A case of operati
Slide 144: Power Operations Service for Solar + Battery Co-located Systems
Competitive Advantages Power Operations Service for Solar + Battery -located Co Systems (PowerX Power Business) Electricity flow ✓ Generation forecasting Customer’s power plant （ FIT→FIP） ✓ Imbalance management (submission of plans) ✓ kWh-based optimization / charging control PCS Receiving equipment
Slide 145: Corporate Power Supply Service: Battery Option
Competitive Advantages Corporate Power Supply Service: “Battery Option” Grid Customer Site • A service available to customers subscribed to PowerX’scorporate electricity retail menu (Advanced / Semi-flat / Flat / market -linked plans), enabling the introduction of battery storage systems with effect
Slide 146: Modular Data Center Differentiators
Modular Data Center Differentiators Confidential and Proprietary, PowerX, Inc. 145
Slide 147: Mega Power DC Scalability and Flexibility
Competitive Advantages > Modular Data Center Differentiators Mega Power DC Scalability and Flexibility Scale of Data Center (Consumption) & Estimated number of Mega Power DC Hyperscale Data Center 25MW〜 ✕ 125 units〜 （ 750 racks) Mid-sized Data Center Tens of MW ✕ 25 units〜 (150 racks) Small -sized D
Slide 148: Regulatory Advantages of Containerized Data Centers
Competitive Advantages > Modular Data Center Differentiators Mega Power DC– Regulatory Advantages of Containerized Data Centers Building permit approval & Containerized data centers are therefore Real estate registration not classified as buildings are not required Condition: Condition: Condition: C
Slide 149: Mega Power DC Project Timeline to Commercial Operation
Competitive Advantages > Modular Data Center Differentiators Mega Power DC Project Timeline to Commercial Operation • Lead times for both grid interconnection and construction can be significantly shortened, enabling a faster start of operations. 〜 〜 Typical Development Approx. ４~５ Feasibility study
Slide 150: Mega Power DC Cost Advantages
Competitive Advantages > Modular Data Center Differentiators Mega Power DC Cost Advantages • Comparison based on Construction-year + 5 OPEX (LCOC) *IT equipment is standardized globally Cost Comparison: JPY 100 million per Receiving MW (excluding IT equipment) OPEX (5-year) OPEX Time Construction (5
Slide 151: Mega Power DC Value Proposition Summary
Competitive Advantages > Modular Data Center Differentiators Mega Power DC Value Proposition Summary Cost Advantage Stable Mass Production Scalability Shortened Project Leveraging Shared Battery Flexibility Timeline Technology ・ High Mobility ・ Deployable across a wide range of locations next Confid
Slide 152: Co-location with Large-scale Power Plant
Competitive Advantages > Modular Data Center Differentiators ＊Industry-standard 42U rack Co-location with Large-scale Power Plant Large-scale Power Plant Power Received Container IT racks＊ 1,000 MW 25 MW 125 750 Direct Power Supply from Power Plant Stable electricity supply from a neighboring genera
Slide 153: Co-location with Battery Power Plant / Renewables
Competitive Advantages > Modular Data Center Differentiators ＊Industry-standard 42U rack Co-location with Battery Power Plant / Renewables High / Extra-High Voltage Battery Power Plant Power Received Container IT racks＊ 2~20 MW 0.2~2 1~10 6~ 60 MW Watt–Bit Optimized Operations Joint operation of DC
Slide 154: Co-location with Battery Power Plant / Renewables: Potential
Competitive Advantages > Modular Data Center Differentiators Co-location with Battery Power Plant / Renewables Battery power Solar power Factories and plant plant other bases 140 locations Our BESS system used: * As of the end of January, 2026 For example, Mega Power adding3 sets DC per location IT
Slide 155: Co-location with Edge Sites
＊Industry-standard 42U rack Competitive Advantages > Modular Data Center Differentiators Co-location with Edge Sites Power Received Container IT racks＊ 0.2 MW 1 4 (ESS Integrated) Integrated Demand & Location Ideal for Physical AI and Private AI applications Low latency and improved response perform
Slide 156: Mega Power DC Applications
Competitive Advantages > Modular Data Center Differentiators Mega Power DC Applications • The ESS integrated modular data center is a physical infrastructure that is portable, - mass produced, and scalable, and can be switched between different uses depending on the application. Equipment Selection
Slide 157: Matters Regarding Forward-Looking Statements
Matters Regarding Forward-Looking Statements This material has been prepared for the purpose of helping readers understand the Company and is not intended as a solicitation for investment. Earnings forecasts and future projections contained in this material include so-called “forward-looking stateme
Slide 158: Thank You
Thank You