Chugoku Electric Power : FY 3/2026-2Q Financial Results

The Summary of Financial Results for FY 3/2026-2Q

(April 1 through September 30, 2025)

The Chugoku Electric Power Co., Inc.

November 14, 2025

In this report, the term Fiscal Year 3/2026 refers to the period between April 1, 2025 and March 31, 2026.

Contents

1. Financial Results for FY 3/2026-2Q

   1. Summary of ConsolidatedFinancial Results (P1)

   2. ConsolidatedStatements of Operations（P2）

   3. Factors AffectingConsolidatedOrdinary Profit(P3)

   4. Total ElectricitySales Volume (P4)

   5. Power Generated and Received(P5)

   6. Summary of SegmentInformation(P6)

   7. Key Factors (P7)

2. Financial Results Forecastand DividendPolicyfor FY 3/2026

   1. Summary of ConsolidatedFinancial Results

      Forecast(P8)

   2. Factors AffectingConsolidatedOrdinary Profit (Compared to previous forecast) (P9)

   3. Financial Results Forecastby Segment (Compared to previous forecast) (P10)

   4. Capital Efficiency(ROIC/ROE) (P12-13)

   5. Stance RegardingFinancial Results Forecast(P14)

   6. Key Factors(P15)

   7. DividendPolicy(P16-17)

3. Progress of theGroupMedium-term ManagementPlanandFutureActions

   1. Status of Initiatives under the Group

      Medium-termManagementPlan (2024-2025)(P18)

   2. Capital ProcurementStatus(P19)

   3. Steps for Realizing Chugoku Electric Power Group Corporate Vision2040(P20)

   4. Direction of the NextMedium-termManagementPlan Toward Realizing the NewGroup Corporate Vision (P21)

   5. Initiatives to Improve PBR(P22-24)

   6. Status of Shimane Nuclear Power Station Unit3(P25)

      (Supplemental Data)

      1. Financial Results for FY 3/2026-2Q

         1. Summary of Consolidated Financial Results 1

            • Operating revenues fell by ¥15.6 billion year on year to ¥726.2 billion due to the factors such as the revisions in the standard electricity rate plan for high voltage and extra-high voltage and a decline in fuel cost adjustment amounts in conjunction with falling fuel prices, despite an increase in retail electricity sales volume.

            • Operating profit increased by ¥21.0 billion year on year to ¥90.9 billion. This was mainly due to the profit improvement from the operation of Shimane Nuclear Power Station Unit 2 and an increase in the profit from the time lag of the fuel cost adjustment system, despite the effect of increased competition in wholesale and retail businesses.

            • Ordinary profit including non-operating profit/loss such as interest paid increased by ¥19.1 billion year on year to ¥84.5 billion.

            • Profit attributable to owners of parent after recording extraordinary income and deducting income taxes increased by ¥13.0 billion year on year to ¥64.7 billion.

              (Billions of yen)

              	FY 3/2026-2Q (A)	FY 3/2025-2Q (B)	Difference (A-B)	YoY growth (A-B)/B
              Operating revenues	726.2	741.9	-15.6	-2.1%
              Operating profit	90.9	69.8	21.0	30.1%
              Ordinary profit	84.5	65.4	19.1	29.2%
              Profit attributable to owners of parent	64.7	51.6	13.0	25.3%

         2. Consolidated Statements of Operations 2

            (Billions of yen)

            		FY 3/2026-2Q （A）	FY 3/2025-2Q （B）	Difference （A-B）
            Ordinary revenues		741.6	752.1	-10.4
            	Operating revenues	726.2	741.9	-15.6
            	Non-operating income	15.4	10.2	5.1
            Ordinary expenses		657.1	686.7	-29.5
            	Operating expenses	635.3	672.0	-36.6
            	Non-operating expenses	21.8	14.7	7.1
            Operating profit		90.9	69.8	21.0
            Ordinary profit		84.5	65.4	19.1
            Extraordinary income		(Note1) 4.3	(Note1) 12.1	-7.7
            Extraordinary losses		-	7.0(Note2)	-7.0
            Income taxes		24.1	18.9	5.2
            Profit attributable to owners of parent		64.7	51.6	13.0

            Note1: The Company recorded gains on sales of nuclear fuel.

            Note2:The Company recorded a loss on sales of property due to the transfer of the land, buildings, and equipmentof the former Shimonoseki Power Station.

         3. Factors Affecting Consolidated Ordinary Profit (Compared to FY 3/2025-2Q) 3

            Consolidated Ordinary Profit +19.1 billion

            FY

            3/2025-2Q

（Billions of yen）

100

Time lag

of the fuel cost

Increase in the total electricity sales volume

Decrease in ordinary profit of Chugoku Electric Power Transmission & Distribution Company

4.3

80 adjustment system

Increase in

-0.2

Increased competition

Others

60

40

65.4

nuclear power operations

FY 3/2025-2Q :

Approx. + 5.0 billion FY 3/2026-2Q :

Approx. +16.0 billion

(wholesale and retail businesses )

Decrease in supply and demand adjustment transactions, etc.

84.5

20

0

【60.4】

Figures in square brackets 【】 represent the profit excluding the effects of any time lag of the fuel cost adjustment system.

【68.5】

1. Total Electricity Sales Volume 4

   • Total electricity sales volume increased by 15.3% year on year to 28.55 billion kWh.

   • Retail electricity sales volume increased by 9.5% year on year to 22.19 billion kWh.

   • Electricity sales volume to other power companies increased by 41.6% year on year

   to 6.36 billion kWh.

（Billions of kWh）

Note 1: The amounts indicated are the total electricity sales volume by Chugoku Electric Power.

Note 2: Amounts do not include the amount of retail power used in-house or the amount of electricity sales volume to other power companies in relation to imbalances/adjusted power supply, etc.

Note 3: There may be discrepancies in totals due to rounding.

1. Power Generated and Received 5

   • Generated and received electricity increased by 15.3% year on year to 30.64 billion kWh.

   • Our own thermal power generation increased due to factors such as the rise in total electricity sales volume.

   • Nuclear power generation increased as a result of the operation of Shimane Nuclear Power

   Station Unit 2.

（Billions of kWh）

Note 1: The amounts indicated are the power generated and received by Chugoku Electric Power.

Note 2: Shimane Nuclear Power Station Unit 2 has restarted power generation, connected to the grid since December 23, 2024.

Note 3: Power received from other companies includes power pertaining to imbalances/adjusted power supply, etc. The power amounts indicated are those identified as of the end of the fiscal year.

Note 4: The difference between the total amount of power generated and received and the total electricity sales volume is the amount of power loss, etc. Note 5: There may be discrepancies in totals due to rounding.

1. Summary of Segment Information 6

   • In the comprehensive energy business, revenues decreased due to the factors such as the revisions in the standard electricity rate plan for high voltage and extra-high voltage and a decline in fuel cost adjustment amounts in conjunction with falling fuel prices, despite an increase in retail electricity sales volume. Operating profit increased mainly due to the profit improvement from the operation of Shimane Nuclear Power Station Unit 2 and an increase in the profit from the time lag of the fuel cost adjustment system.

   • In the power transmission and distribution business, operating profit increased primarily due to an increase in standard connection and wheeling revenue, as well as increased profit from settlements among general electricity transmission and distribution utilities, despite an increase in maintenance expenses.

   (Billions of yen)

   		FY 3/2026-2Q （A）	FY 3/2025-2Q （B）	Difference （A-B）
   Comprehensive energy	Operating revenues	667.7	689.1	-21.4
   	Operating profit	74.8	52.4	22.3
   Power transmission and distribution	Operating revenues	237.5	253.0	-15.5
   	Operating profit	15.1	14.6	0.4
   Information and telecommunications	Operating revenues	22.9	21.9	0.9
   	Operating profit	1.9	2.4	-0.4
   Others	Operating revenues	44.0	48.8	-4.7
   	Operating profit	0.1	2.0	-1.8
   Adjustment	Operating revenues	(-246.1)	(-271.2)	(25.1)
   	Operating profit	(-1.2)	(-1.7)	(0.4)
   Total	Operating revenues	726.2	741.9	-15.6
   	Operating profit	90.9	69.8	21.0

2. Key Factors 7

• Key factors

Note: Crude oil and imported coal CIF prices are preliminary figures for FY 3/2026-2Q.

（Billions of yen)

Note: This indicates the shareholders' equity ratio if the ¥50.0 billion of the hybrid corporate bonds already raised (announced on December 3, 2021) and ¥50.0 billion of transition-linked hybrid loans already raised (announced on September 29, 2022) are both treated as equity capital.

1. Factors Affecting Consolidated Ordinary Profit

   (Compared to previous forecast) 9

   Previous forecast

   Consolidated Ordinary Profit +15.0 billion

   Revised forecast

   （Billions of yen）

   125

   100

   8.0

   Improvement in supply

   Increase in operating profit in the power transmission and distribution

   business

   5.0 -1.0

   Others

   3.0

   75

   50

   85.0

   25

   0

   and demand-related profit

   Difference in demand composition +15.0 billion

   Difference in power generation composition - 7.0 billion, etc.

   Time lag of the fuel cost adjustment system

   Previous forecast: Approx. +10.0 bilion Revised forecast : Approx. +13.0 bilion

   100.0

   【75.0】 【87.0】

   Figures in square brackets 【】 represent the profit excluding the effects of any time lag of the fuel cost adjustment system.

2. Financial Results Forecast by Segment (Compared to previous forecast) 10

• In the comprehensive energy business, profit is expected to increase compared with the previous forecast mainly due to improvement in supply and demand-related profit and an increase in the profit from the time lag of the fuel cost adjustment system.

• In the power transmission and distribution business, profit is expected to increase compared with the previous forecast mainly due to an increase in standard connection and wheeling revenue and a decrease in expenses related to supply and demand adjustments.

（Billions of yen）

Reference (Factors Affecting Consolidated Ordinary Profit

(Compared to FY 3/2025) ) 11

FY

3/2025

Consolidated Ordinary Profit -28.5 billion

（Billions of yen）

200

Increase in

Increase in the

Decrease in operating profit

total electricity

nuclear power

in the power

150

operations

sales volume

transmission and

2.0

10.0

15.0

distribution business

-10.2

100

50

128.5

Time lag of the fuel cost adjustment system

FY 3/2025 : Approx. +11.0 bilion FY 3/2026 : Approx. +13.0 bilion

Increased competition (wholesale and retail businesses )

Decrease in supply and demand adjustment transactions, etc.

-23.3

Others

100.0

0 【117.5】 【87.0】

Figures in square brackets 【】 represent the profit excluding the effects of any time lag of the fuel cost adjustment system.

4-1. Capital Efficiency (ROIC・ROE) 12

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

2.5%

Approx.

1.7%

Approx.

1.9%

WACC

1.4％

FY 3/2025 FY 3/2026

(Previous

forecast)

FY 3/2026

(Revised

forecast)

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

14.4%

Costof shareholder's equity6.3％

Approx.

7.6%

Approx. 9.3%

FY 3/2025 FY 3/2026

(Previous forecast)

FY 3/2026

(Revised forecast)

Note 1 : Invested capital for ROIC and shareholder's equity for ROE are calculated based on averages at the beginning and end of the period. Note 2 : The profit used for ROIC calculation is business profit (after tax), which is operating profit plus dividend income, etc.

Note 3 : WACC and cost of shareholder's equity have been calculated based on CAPM.

Note 4 : Beta value of 0.81 (for Chugoku Electric in FY 3/2025), market risk premium of 6.5%.

4-2. Capital Efficiency (ROIC by Segment) 13

Note 1 : ROIC of comprehensive energy is calculated excluding impacts from time lag of the fuel cost adjustment system.

Note 2 : Figures in [ ] are previous forecasts announced on April 30, 2025.

Note 3 : Invested capital for ROIC is calculated based on averages at the beginning and end of the period.

Note 4 : The profit used for ROIC calculation is business profit (after tax), which is operating profit plus dividend income, etc.

5. Stance Regarding Financial Results Forecast 14

• Compared with the previous forecast, profit is expected to increase mainly due to improvement in supply and demand-related profit, an increase in the profit from the time lag of the fuel cost adjustment system, and improvement in the profit from the power transmission and distribution business.

• We will thoroughly manage risks associated with profit fluctuations such as increases in procurement costs of materials and equipment due to rising prices, as well as potential impacts on electricity demand from winter temperatures and

U.S. tariff measures, in addition to fluctuations in exchange rates and fuel prices going forward. We will also work to achieve further profit growth by ensuring stable operation of the Shimane Nuclear Power Station, capturing earnings opportunities through market utilization, and improving efficiency across overall management.

6. Key Factors 15

Note 1: The total electricity sales volume is the sum of the retail electricity sales volume and the electricity sales volume to other power

companies by Chugoku Electric Power.

Note 2: The total electricity sales volume does not include the amount of retail power used in-house or the amount of electricity sales volume to other power companies in relation to imbalances/adjusted power supply.

• Impact of fluctuations in factors on cost of raw materials

（Billions of yen）

7-1. Dividend Policy (For FY 3/2026) 16

《Dividends》 （Dividends per share）

7-2. Dividend Policy (For FY 3/2027 and beyond) 17

1. Status of Initiatives under the Group Medium-term Management Plan (2024-2025) 18

   • The "Group Medium-term Management Plan (2024-2025)" covers the two-year period of FY 3/2025 and FY 3/2026, during which we have been leveraging the collective strength of the Group to focus on restoring our revenue and financial base.

   • In FY 3/2025, due to the realization of the Group-wide initiative to restart Shimane Nuclear Power Station Unit 2 last December, as planned, as well as improved efficiency across our overall management, consolidated ordinary profit reached 128.5 billion yen, exceeding the planned level, and the consolidated shareholders' equity ratio was restored to the targeted 15% one year ahead of the originally scheduled FY 3/2026 year-end.

   • For FY 3/2026, we have begun implementing the strategy for expanding revenue in the electricity business that was reviewed last year by a limited-term project team reporting directly to the president. With expectations for securing new demand since the previous fiscal year, consolidated ordinary profit is projected to improve by 15 billion yen from the initial plan, reaching 100 billion yen. In addition, we will continue working to further increase profits in order to achieve our targeted consolidated shareholders' equity ratio of 20% or higher in FY 3/2031.

   Trends in consolidated shareholders' equity ratio and consolidated ordinary profit

   Consolidated shareholders' equity ratio (initial plan)
   
   

   (Billions of yen)

   
   
   

   300

   200

   Consolidated shareholders' equity ratio (results/projection)

   Consolidated shareholders' equity ratio for domestic credit rating, reflecting hybrid bonds, etc. (results/projection)

   17.1%

   18.5% Approx.19％

   16.2% Approx. 16.6%

   100

   13.6%

   11.1%

   14.6%

   14.7% 15％ or higher

   0

   194.0

   65.0

   128.5

   85.0

   or more

   100.0

   -100

   -200

   -106.7

   Restart of Shimane Unit 2

Consolidated ordinary profit

(Initial plan) (Results)

(Initial plan) (Projection)

2022

2023

2024

2025

3/2023 3/2024 3/2025 3/2026

(FY)

1. Capital Procurement Status 19

   • In addition to the investments made up to the restart of Shimane Nuclear Power Station Unit 2, we will need to procure a substantial amount of capital for Shimane Nuclear Power Station Unit 3 and other decarbonization-related investments that are indispensable for our future growth. We have long been working to diversify both our procurement methods and sources, and we are currently receiving financial support from a wide range of sources.

   • We will continue to pursue stable capital procurement by conveying our initiatives for improving our revenue and financial base, as well as our efforts toward carbon neutrality, through careful dialogue with financial institutions and investors. Furthermore, as we view capital procurement risks as a key issue in the process of optimizing our financial leverage levels, we will actively utilize transition finance to ensure stable capital procurement.

20

1. Steps for Realizing Chugoku Electric Power Group Corporate Vision

   2040

   • Under the "Chugoku Electric Power Group Corporate Vision 2040," we have set financial targets toward FY 3/2041 with the aim of achieving sustainable growth supported by high capital profitability and a stable financial base.

   • Although the ROE forecast for FY 3/2026 exceeds the FY 3/2031 target of 8%, improvements in the equity ratio will place downward pressure on ROE going forward. By working to enhance ROIC, we aim to achieve improvement in both the equity ratio and ROE, thereby realizing stable growth.

     57.5 billion kWh

1. • Until FY 3/2031, we will proceed with investments in projects essential for our future growth, such as Shimane Unit 3 and the new Yanai Unit 2, while advancing transformation and foundation building toward sustainable growth. Beyond FY 3/2031, we aim to reap the rewards of these investments, continue achieving sustainable growth supported by high capital profitability and a stable financial base, and establish a PBR consistently over 1x.

     Note 1: All financial targets are consolidated figures.

     Note 2: WACC for FY 3/2031 is assumed to be just under 3%.

     Note 3: The forecast for FY 3/2026 is based on the figures published on October 31, 2025.

     ROE and ROIC exclude the time lag effect

     of the fuel cost adjustment system.

     Chugoku Electric Power Group Corporate Vision 2040 - Briefing Materials for the session held on October 2, 2025

     https://www.energia.co.jp/e/ir/info/pdf/ir6-72.pdf

     21

2. Direction of the Next Medium-term Management Plan Toward

   Realizing the New Group Corporate Vision

   • The Group Medium-Term Management Plan beginning in FY 3/2027 will cover the five-year period through FY 3/2031, during which Shimane Unit 3 and the new Yanai Unit 2 are expected to commence operation. During this period, we will advance efforts to build the foundation for sustainable growth and transformation, aiming to achieve and subsequently maintain a PBR of 1x at an early stage in FY 3/2031 and beyond.

   • Specifically, for each of the major issues corresponding to the materiality themes set forth in the "Chugoku Electric Power Group Corporate Vision 2040," we will further detail the initiatives and proceed with their implementation.

1. Initiatives to Improve PBR 22

   *1: Excluding the time lag effect of the fuel cost adjustment system

   [Promotion of ROIC management]

   • Enhancing total asset turnover ratio

   [FY 3/2025 result: 0.36 times]

   *2: Target level for FY 3/2031

   Return on equity (ROE)

   • Improving power availability through stable operation of Shimane Unit 2, etc.

   • Commencing operation of Shimane Unit 3 and the new Yanai Unit 2

   • Streamlining assets • Utilizing project finance • Strengthening materials and equipment procurement capabilities

   • Prioritizing investment projects based on stricter cash management, capital costs, etc.

     • Improving operating profit margin

       [FY 3/2025 result*1: 7.7%]

       FY 3/2025 result*1: 14.4%

       Target*2: 8% or higher

       Price book-value ratio (PBR)

       FY 3/2025 result: 0.4x Target: 1x or higher

   • Developing high value-added rate plans and services, expanding energy solutions such

     as decarbonization

   • Strengthening sales strategy to increase gross profit and enhancing power source procurement functions

   • Capturing growing demand within the area driven by electrification in the manufacturing sector and new construction and expansion of data centers

   • Enhancing the value of thermal power generation and advancing trading by utilizing electricity trading markets, etc.

   • Shifting personnel to profit-generating areas

   [Business management that is conscious of stock price]

   • Enhancing shareholder returns

     • Transitioning to DOE and enhancing it in stages

   • Promoting sustainability management

     • Developing a promotion structure • Enhancing KPIs

     • Expanding initiatives across the Group

   • Strengthening engagement activities

     • Enhancing information disclosure and promoting constructive dialogue

FY 3/2025 result: 3.1x

(Reference) Cash Allocation Toward FY 3/2031 23

• Through FY 3/2031, we will use debt financing to invest in the Shimane Unit 3 and New Yanai Power Station Unit 2, which are essential for the Group's future growth, including stabilized management and greater competitiveness, decarbonization, and more.

• In our efforts to curb an increase in liabilities, we will steadily increase profits by enhancing customer services, increasing the value of power sources, evolving trading, and more, while carefully selecting investments outside of Shimane Unit 3 and the new Yanai Unit 2 to the extent that they do not interfere with a stable supply of energy, among other efforts.

• In Action Plan2026-2030, we also intend to disclose details such as the breakdown of investments.

  
  
  

  Note 1: Values in the chart are rounded to the nearest whole number. Information on liabilities other than interest-bearing liabilities has been omitted. Note 2: Graph values are assumptions made at the time the Group Corporate Vision was formulated, and do not constitute a guarantee.

  (Reference) Initiatives to Restore Financial Base and Achieve

  Stable Capital Procurement, etc. 24

• Electricity rate revisions and the restart of Shimane Unit 2 have contributed to steadily restoring shareholders' equity, which had been significantly impaired. However, due to investments in safety measures for Shimane Unit 3-an asset indispensable for our future growth following Shimane Unit 2-free cash flow (FCF) is expected to

  remain negative for the time being, and interest-bearing debts are projected to increase by approximately 400 billion yen by FY 3/2031. Maintaining our credit rating is an important priority from the perspective of stable business operations and capital cost containment, and we will continue working to restore our financial base.

• To stabilize our funding, we are working to diversify our capital procurement methods and sources, streamline assets through the sale of cross shareholdings and nuclear fuel assets, and secure cash reserves through advance procurement.

• In addition, we are utilizing public mechanisms such as the long-term decarbonized power resource auction as a means to increase the likelihood of recovering our investments, and we will continue to call on the government for the financing measures necessary for stable business operations.

Outlook for interest-bearing debts

Consolidated shareholders' equity ratio

FY 3/2027-FY 3/2031

Capital procurement

+400 billion yen

3,300.0

3,181.3

(Assumption)

Reduction of interest-bearing debts through debt repayment and diversification of financing

Target

Credit rating

Past initiatives

3,004.2

14.6% 16.2% 16.6%

Consolidated interest-bearing debts

(Billions of yen)

Target

2023

2024

2025

2030

2040

3/2024 3/2025 3/2026 3/2031 3/2041

(Forecast)

(FY)

1. Status of Shimane Nuclear Power Station Unit 3 25