Chugoku Electric Power Co., Inc. TSE:9504

Chugoku Electric Power : Supporting Document of FY 3/2026 Financial Results

Published

Source: MarketScreener

‌Supporting document of FY 3/2026 financial results

The Summary of Financial Results for FY 3/2026(April 1 through March 31, 2026)

The Chugoku Electric Power Co., Inc.

April 28, 2026

In this report, the term Fiscal Year 3/2026 refers to the period

between April 1, 2025 and March 31, 2026.

‌I. Financial Results for FY 3/2026

・・・・・ ・

① ~ Ⓑ

II. Financial Results Forecast for FY 3/2027 and Dividend Policy

・・・・・ ・

⑨ ~ ⑱

(Reference) Supplemental Data

・・・・・ ・

⑲ ~

Contents

I. Financial Results for FY 3/2026

  1. ‌Summary of Consolidated Financial Results

    • Operating revenues fell by ¥86.9 billion year on year to ¥1,442.3 billion due to the factors such as a decline in fuel cost adjustment amounts in conjunction with falling fuel prices, despite an increase in retail electricity sales volume.

    • Operating profit decreased by ¥38.9 billion year on year to ¥90.2 billion. This was mainly due to increased competition in wholesale and retail businesses and a decrease in profit in the power transmission and distribution business, despite the profit improvement from the operation of Shimane Nuclear Power Station Unit 2 and an increase in the total electricity sales volume driven by new customer acquisition.

    • Ordinary profit including non-operating profit/loss such as interest paid decreased by

      ¥48.3 billion year on year to ¥80.2 billion.

    • Profit attributable to owners of parent after recording extraordinary income and deducting

income taxes decreased by ¥29.9 billion year on year to ¥68.5 billion.

(Billions of yen)

FY 3/2026 (A)

FY 3/2025 (B)

Difference (A-B)

YoY growth (A-B)/B

Operating revenues

1,442.3

1,529.2

-86.9

-5.7%

Operating profit

90.2

129.1

-38.9

-30.1%

Ordinary profit

80.2

128.5

-48.3

-37.6%

Profit attributable to

owners of parent

68.5

98.4

-29.9

-30.4%

‌(Billions of yen)

FY 3/2026

(A)

FY 3/2025

(B)

Difference

(A-B)

Ordinary revenues

1,478.7

1,558.8

-80.1

Operating revenues

1,442.3

1,529.2

-86.9

Non-operating income

36.4

29.6

6.7

Ordinary expenses

1,398.5

1,430.3

-31.8

Operating expenses

1,352.0

1,400.0

-47.9

Non-operating expenses

46.4

30.2

16.1

Operating profit

90.2

129.1

-38.9

Ordinary profit

80.2

128.5

-48.3

Extraordinary income

(Note1)

10.5

(Note1)

12.1

-1.6

Extraordinary losses

13.9(Note2)

-13.9

Income taxes

22.2

28.2

-6.0

Profit attributable to owners of parent

68.5

98.4

-29.9

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

Note2: The Company recorded a loss on sales of property of ¥7.0 billion due to the transfer of the land, buildings, and equipment of the former Shimonoseki Power Station, and an impairment loss of ¥6.9 billion related to Chugoku Electric Power Australia Resources.

2. Consolidated Statements of Operations

Consolidated Ordinary Profit -48.3 billion

‌FY 3/2025

FY 3/2026

3.経常利益の変動要因【連結】

3.経常利益の変動要因【連結】

3. Factors Affecting Consolidated Ordinary Profit

(Billions of yen)

180

160

140

Time lag

of the fuel cost

Increase in the total electricity sales volume

17.0

11.0

Decrease in ordinary profit of Chugoku Electric Power Transmission & Distribution

120

adjustment system

-1.0

Increase in

Company

-36.2

-15.1

-24.0

Others

100

FY 3/2025 :

nuclear power

operations

Increased competition (wholesale and retail businesses )

80

60 128.5

40

20

0

Approx. +11.0 billion FY 3/2026 :

Approx. +10.0 billion

Increase in maintenance expenses* -8.3 Decrease in water flow* -4.4

Increase in interest expense -11.3, etc.

*Attributable to Chugoku Electric Power

80.2

【117.5】

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

【70.2】

‌(Billions of kWh)

FY 3/2026

(A)

FY 3/2025

(B)

Difference

(A-B)

YoY growth (A-B)/B

Total electricity sales volume

56.81

51.75

5.06

9.8%

Retail electricity sales volume

Lighting

14.91

15.53

-0.62

-4.0%

Power

30.52

26.19

4.33

16.5%

Subtotal

45.42

41.72

3.70

8.9%

Electricity sales volume to other power companies

11.39

10.02

1.36

13.6%

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.

4. Total Electricity Sales Volume

  • Total electricity sales volume increased by 9.8% year on year to 56.81 billion kWh.

  • Retail electricity sales volume increased by 8.9% year on year to 45.42 billion kWh.

  • Electricity sales volume to other power companies increased by 13.6% year on year to 11.39 billion kWh.

‌(Billions of kWh)

FY 3/2026

(A)

FY 3/2025

(B)

Difference

(A-B)

YoY growth

(A-B)/B

Generated and received electricity

61.08

55.69

5.39

9.7%

Generated by Chugoku Electric Power

34.64

30.62

4.01

13.1%

(Water flow rate)

(86.5%)

(101.1%)

(-14.6%)

-4.6%

Hydroelectric

3.43

3.59

-0.17

Thermal

24.72

24.95

-0.22

-0.9%

(Capacity factor)

(87.9%)

(27.6%)

(60.3%)

219.0%

Nuclear

6.32

1.98

4.34

New energy sources

0.17

0.11

0.07

63.7%

Received from other companies

28.26

26.45

1.80

6.8%

Power used for water pumping

-1.81

-1.38

-0.42

30.6%

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.

5. Power Generated and Received

  • Generated and received electricity increased by 9.7% year on year to 61.08 billion kWh.

  • Our own thermal power generation decreased due to factors such as an increase in nuclear power generation.

  • Nuclear power generation increased as a result of the operation of Shimane Nuclear Power Station Unit 2.

‌6. Summary of Segment Information

  • In the comprehensive energy business, operating revenues decreased due to the factors such as a decline in fuel cost adjustment amounts in conjunction with falling fuel prices, despite an increase in retail electricity sales volume. Operating profit decreased mainly due to increased competition in wholesale and retail businesses, despite the profit improvement from the operation of Shimane Nuclear Power Station Unit 2 and an increase in the total electricity sales volume driven by new customer acquisition.

  • In the power transmission and distribution business, operating profit decreased primarily due to a decline in standard connection and wheeling revenue and an increase in maintenance and outsourcing expenses resulting particularly from rising prices, despite increased profit from settlements among general electricity transmission and distribution utilities.

    (Billions of yen)

    FY 3/2026

    (A)

    FY 3/2025

    (B)

    Difference

    (A-B)

    Comprehensive energy

    Operating revenues

    1,314.3

    1,408.0

    -93.7

    Operating profit

    70.2

    95.1

    -24.9

    Power transmission

    and distribution

    Operating revenues

    473.8

    511.5

    -37.6

    Operating profit

    12.0

    25.2

    -13.1

    Information and tele-

    communications

    Operating revenues

    49.8

    49.4

    0.4

    Operating profit

    4.8

    4.7

    0.1

    Others

    Operating revenues

    112.3

    110.5

    1.8

    Operating profit

    6.7

    7.5

    -0.7

    Adjustment

    Operating revenues

    (-508.0)

    (-550.3)

    (42.2)

    Operating profit

    (-3.8)

    (-3.4)

    (-0.3)

    Total

    Operating revenues

    1,442.3

    1,529.2

    -86.9

    Operating profit

    90.2

    129.1

    -38.9

    ‌FY 3/2026

    (A)

    FY 3/2025 (B)

    Difference (A-B)

    Exchange rate (¥/$)

    151

    153

    -2

    All Japan CIF crude oil price ($/b)

    71.4

    82.4

    -11.0

    All Japan CIF imported coal price ($/t)

    121.0

    151.0

    -30.0

    Nuclear capacity factor (%)

    87.9

    27.6

    60.3

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

    7. Key Factors

    FY 3/2026

    FY 3/2025

    Overview of financial

    results

    Decrease in revenue(-86.9) Decrease in profit (-48.3) for 2 consecutive years

    Decrease in revenue(-99.5) Decrease in profit (-65.5) for the first time in 3 years

    Operating revenues

    1,442.3

    1,529.2

    Operating profit

    90.2

    129.1

    Ordinary profit

    80.2

    128.5

    Profit attributable to owners of parent

    68.5

    98.4

    • ‌Consolidated Statements of Operations

    • Consolidated Balance Sheets

(Billions of yen)

(Billions of yen)

FY 3/2026

FY 3/2025

Total assets

4,620.5

4,360.9

Net assets

775.2

705.8

Shareholders’ equity ratio

16.8%

(19.0%(Note 2)

16.2%

(18.5%(Note 2)

Interest-bearing debts

3,332.5

3,181.3

Note 1: Increases/decreases in profit in the overview of financial results are based on ordinary profit.

Note 2: 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.

Reference

(Statements of Operations and Balance Sheets (Consolidated))

8

II. Financial Results Forecast for FY 3/2027 and Dividend Policy

‌(Billions of yen)

FY 3/2027

Forecast (A)

FY 3/2026 (B)

Difference

(A-B)

Operating revenues

1,490.0

1,442.3

47.6

Operating profit

52.0

90.2

-38.2

Ordinary profit

40.0

80.2

-40.2

Profit attributable to owners of parent

31.0

68.5

-37.5

Shareholders’ equity ratio

Approx.16.9% (Approx.19.1%(Note))

16.8% (19.0%(Note))

Capital expenditure

Approx. 430.0

282.7

147.2

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. Summary of Consolidated Financial Results Forecast

  • Operating revenues are expected to increase mainly due to an increase in the total electricity sales volume and an increase in fuel cost adjustment amounts.

  • Profit is expected to decrease due to the factors such as a decline in nuclear power operations, a decline in profit from the power transmission and distribution business and significant loss from the time lag of the fuel cost adjustment system associated with rising fuel prices.

FY 3/2026

Consolidated Ordinary Profit -40.2 billion

FY 3/2027

Forecast

120

80.2

-36.0

40.0

(Billions of yen)

100

80

60

Time lag of the fuel cost adjustment system

FY 3/2026 : Approx. +10.0 billion FY 3/2027 : Approx. - 26.0 billion

10.0

Increase in the total electricity sales volume

Decrease in operating profit in the power transmission and distribution business

Increase in interest expense -2.0, etc.

40

20

Decrease in nuclear power operations

FY 3/2026 : 88% FY 3/2027 : 64%

-3.0 -1.2

-10.0

Others

0

【70.2】 【66.0】

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

2. Factors Affecting Consolidated Ordinary Profit

(Compared with FY 3/2026)

10

‌(Billions of yen)

FY 3/2027

Forecast

(A)

FY 3/2026

(B)

Difference

(A-B)

Comprehensive energy

Operating revenues

Approx. 1,414.0

1,314.3

99.6

Operating profit

Approx. 44.0

70.2

-26.2

Power transmission

and distribution

Operating revenues

Approx. 417.0

473.8

-56.8

Operating profit

Approx. 9.0

12.0

-3.0

Information and

tele-communications

Operating revenues

Approx. 49.0

49.8

-0.8

Operating profit

Approx. 2.0

4.8

-2.8

Others

Operating revenues

Approx. 40.0

112.3

-72.3

Operating profit

Approx. 2.0

6.7

-4.7

Adjustment

Operating revenues

(Approx. -430.0)

(-508.0)

(78.0)

Operating profit

(Approx. -5.0)

(-3.8)

(-1.1)

Total

Operating revenues

Approx. 1,490.0

1,442.3

47.6

Operating profit

Approx. 52.0

90.2

-38.2

Note: We have revised the segmentclassification ofsome subsidiaries previously included in the others segmentand reclassified them into the comprehensive energy business or the power transmission and distribution business effective from FY 3/2027.

3. Financial Results Forecast by Segment (Compared with FY 3/2026) 11

  • In the comprehensive energy, profit is expected to decrease due to the factors such as the loss from the time lag of the fuel cost adjustment system and a decrease in operations of Shimane Nuclear Power Station Unit 2 due to a periodic inspection.

  • In the power transmission and distribution business, profit is expected to decrease mainly due to a decline in standard connection and wheeling revenue and an increase in expenses for upgrading equipment.

  • ‌As profits decline are anticipated compared with FY 3/2026 , both ROIC and ROE are expected to decrease.

ROIC

(excluding the effects of any time lag of the fuel cost adjustment system)

ROE

(excluding the effects of any time lag of the fuel cost adjustment system)

2.0%

1.5%

1.0%

0.5%

1.5%

WACC

1.2%

1.7% Approx.

9.0%

8.0%

7.0%

6.0%

5.0%

Cost of

shareholder’s

equity 6.0%

Approx. 6.4%

8.3%

0.0%

FY 3/2026 FY 3/2027

(Forecast)

4.0%

FY 3/2026 FY 3/2027

(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 : In calculating WACC, shareholder’s equity is performed a mark-to-market. Assuming a PBR of 1x, WACC is 1.7%.

Note 5 : Beta value of 0.66 (for Chugoku Electric Power in FY 3/2026), market risk premium of 6.5%.

4-1. Capital Efficiency (ROIC・ROE)

12

‌FY 3/2027

Forecast

FY 3/2026

Operating profit (Billions of yen)

ROIC

Operating profit (Billions of yen)

ROIC

Comprehensive energy

Approx. 44.0

Approx. 2.0%

70.2

1.9%

Power transmission and distribution

Approx. 9.0

Approx. 0.6%

12.0

0.8%

Information and telecommunications

Approx. 2.0

Approx. 2.5%

4.8

6.1%

Note 1 : ROIC of comprehensive energy is calculated excluding impacts from time lag of the fuel cost adjustment system. Note 2 : Invested capital for ROIC is calculated based on averages at the beginning and end of the period.

Note 3 : The profit used for ROIC calculation is business profit (after tax), which is operating profit plus dividend income, etc.

Note 4 : We have revised the segment classification of some subsidiaries previously included in the others segment and reclassified them into the comprehensive energy business or the power transmission and distribution business effective from FY 3/2027.

4-2. Capital Efficiency (ROIC by Segment)

13

  • ‌For FY 3/2027, we expect a decline in profit due to factors such as a decline in nuclear power operations and a decline in profit from the power transmission and distribution business, as well as a significant loss from the time lag of the fuel cost adjustment system, which is based on the assumption that current elevated fuel prices will remain high throughout the fiscal year.

  • Due to the situation in the Middle East, we recognize that the business environment is uncertain, with many risks that could affect our financial performance, including a wider range of fluctuations in fuel prices and other factors, a deterioration in the future procurement environment for fuel and materials, and changes in electricity demand driven by production trends in Japan’s manufacturing industry.

  • Based on these circumstances, we will continue to closely monitor developments in the business environment and further enhance our risk management efforts, including market risk management. At the same time, we will promote further new customer acquisition, the stable operation of the Shimane Nuclear Power Station, the generation of profits through transactions that capitalize on market price fluctuations, and efficiency improvements across our overall business. With these initiatives, we will work to improve our performance.

    5. Stance Regarding Financial Results Forecast

    14

    ‌Reference (Impact of the deteriorating situation in the Middle East) 15

  • Although the situation in the Middle East is uncertain, in this financial results forecast, we assume that the currently elevated fuel prices will remain high throughout the fiscal year.

  • In addition, it is difficult to quantitatively estimate the impact on the procurement environment for fuel and materials if the impact is prolonged, as well as fluctuations in retail electricity sales volume due to production trends in Japan’s manufacturing industry. However, we will strive to secure fuel and materials necessary for business activities and work to secure profits, including wholesale sales.

    (Ris ks that may affect the Group's business that are not included in the earnings forecast)

    • Risks that power plant operations may be restricted due to difficulties in fuel procurement.

    • Risks that electricity demand may decline due to stagnation in production activities in Japan’s manufacturing industry caused by a shortage of raw materials.

    • Risks that the balance sheets of overseas businesses and Group companies may deteriorate due to stagnation in economic activities. etc.

  • We will continue to monitor the situation closely and take measures as necessary to

stabilize our business performance.

  • Impact of fluctuations in factors on cost of raw materials

    (Billions of yen)

    FY 3/2027

    Forecast

    FY 3/2026

    Exchange rate

    (¥1/$)

    2.1

    1.8

    All Japan CIF crude oil price

    ($1/b)

    1.4

    1.4

    ‌FY 3/2027

    Forecast

    FY 3/2026

    Total electricity sales volume (Billions of kWh)

    60.4

    56.81

    Exchange rate (¥/$)

    160

    151

    All Japan CIF crude oil price ($/b)

    100

    71.4

    Nuclear capacity factor (%)

    64

    87.9

    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)

FY 3/2027

Forecast

FY 3/2026

Exchange rate

(¥1/$)

2.1

1.8

All Japan CIF crude oil price

($1/b)

1.4

1.4

Water flow rate

(1%)

0.3

0.3

Nuclear capacity factor

(1%)

0.7

0.7

6. Key Factors

16

‌7-1. Dividend Policy (For FY 3/2026) 17

  • Our basic policy on dividends for FY 3/2026 is to use a dividend ratio of 12% as a

    guideline, as announced in April 2025.

  • We also announced in September 2025 that, in the course of considering the Chugoku Electric Power Group Corporate Vision 2040 (the “New Corporate Vision”), we would introduce the concept of dividend on equity (DOE) for dividends from FY 3/2027 onward, with a view to ensuring alignment with the financial strategy and enhancing the predictability of dividends.

  • In light of our entering the execution phase of the New Corporate Vision in April this year, we have decided to pay dividends for FY 3/2026 with an emphasis on stability and predictability.

    The annual dividend will remain unchanged from our previously announced dividend

    forecast at ¥27 per share, of which the year-end dividend will be ¥17 per share.

  • This matter was resolved at a meeting of the Board of Directors held today and is scheduled to be submitted to the General Meeting of Shareholders to be held in June.

    《Dividends》 (Dividends per share)

    FY 3/2026

    FY 3/2025

    Interim

    ¥10

    ¥5

    Year-end

    ¥17

    ¥22

    Total

    ¥27

    ¥27

    ‌7-2. Dividend Policy (From FY 3/2027 Onward and Dividend Forecast for FY 3/2027)18

  • Based on the future direction of shareholder returns, which was announced in September 2025, the dividend policy for FY 3/2027 onward and the dividend forecast for FY 3/2027 are as follows.

    Dividend policy for FY 3/2027 Onward

    • In order to provide shareholders with stable dividends even during the process of rebuilding our financial base, we have introduced the concept of dividend on equity (DOE) in deciding dividends starting from FY 3/2027.

    Until the start of commercial operation at Shimane Nuclear Power Station Unit 3, we will determine dividends by comprehensively considering the progress in rebuilding our financial base and other factors, while aiming for a DOE of 2%.

Dividend Forecast for FY 3/2027

  • Based on the above dividend policy and comprehensively considering the progress in rebuilding our financial base and other factors, the annual dividend for FY 3/2027 is forecasted at ¥30 per share (interim dividend of ¥15 and year-end dividend of ¥15), which corresponds to a DOE of approximately 1.5%.

FY 3/2027

Interim

¥15 (Forecast)

Year-end

¥15 (Forecast)

Total

¥30 (Forecast)

《Dividends》 (Dividends per share)

  • We aim for a DOE of 2% even prior to the start of commercial operation at Shimane Nuclear Power Station Unit 3 by promoting the restoration of our financial base.

(Reference) Supplemental Data

‌(Billions of yen)

FY 3/2026 (A)

FY 3/2025 (B)

Difference (A-B)

Cash flows

from operating activities

237.2

186.0

51.2

Cash flows

from investing activities

-236.2

-358.8

122.5

Free Cash Flow

1.0

-172.8

173.8

Cash flows

from financing activities

135.3

161.1

-25.7

Cash and cash equivalents

(increase and decrease)

136.6

-11.7

1. Summary of Cash Flows

19

‌(Billions of yen)

FY 3/2026 (A)

FY 3/2025 (B)

Difference

(A-B)

Ordinary revenues

1,310.4

1,382.1

-71.6

Operating revenues

1,266.7

1,342.2

-75.4

Electricity sales revenue

933.5

950.0

-16.4

Others

333.1

392.2

-59.0

Non-operating income

43.6

39.8

3.8

Ordinary expenses

1,242.9

1,286.8

-43.8

Operating expenses

1,200.6

1,258.3

-57.6

Personnel

42.6

42.6

-0.0

Retirement allowances

0.2

1.0

-0.7

Material

572.5

670.1

-97.6

Fuel

232.1

261.5

-29.4

Purchased power

340.3

408.6

-68.2

Maintenance

67.2

58.9

8.3

Depreciation

80.8

59.5

21.3

Back-end of nuclear power

15.9

5.6

10.3

Transmission fees of connected supply

271.2

267.5

3.7

Others

150.0

153.7

-3.6

Non-operating expenses

42.3

28.5

13.8

Ordinary profit (Operating profit)

67.4

(66.1)

95.2

(83.9)

-27.7

(-17.8)

Provision or reversal of reserve for water shortage

Extraordinary income

10.5

12.1

-1.6

Extraordinary losses

7.0

-7.0

Income taxes, etc.

18.1

17.5

0.6

Profit

59.8

82.9

-23.1

2-1. Income Statement

20

‌(Billions of yen)

FY 3/2026

(A)

FY 3/2025

(B)

Difference

(A-B)

Ordinary revenues

472.9

511.3

-38.3

Operating revenues

471.5

509.7

-38.2

Transmission revenue

336.2

349.8

-13.6

Others

135.2

159.8

-24.6

Non-operating income

1.4

1.5

-0.1

Ordinary expenses

468.0

491.2

-23.2

Operating expenses

459.6

484.7

-25.1

Personnel

44.1

43.7

0.4

Retirement allowances

0.6

1.1

-0.5

Material

167.2

207.2

-40.0

Fuel

2.9

3.3

-0.4

Purchased power, etc.

164.2

203.8

-39.5

Maintenance

75.3

67.8

7.5

Depreciation

43.5

41.8

1.7

Others

129.3

124.1

5.2

Non-operating expenses

8.4

6.5

1.8

Ordinary profit (Operating profit)

4.8

(11.8)

20.0

(25.0)

-15.1

(-13.1)

Income taxes, etc.

0.9

5.0

-4.1

Profit

3.9

14.9

-11.0

<Reference>Electricity demand in the Chugoku region

(Billions of kWh)

FY 3/2026

FY 3/2025

Difference

54.67

55.32

-0.65

2-2. Income Statement 21

2. Monthly Change in Total Electricity Sales Volume 18

  • ‌FY 3/2026 (Billions of kWh)

    Apr.

    May

    Jun.

    Jul.

    Aug.

    Sep.

    Oct.

    Nov.

    Dec.

    Jan.

    Feb.

    Mar.

    Total

    Total electricity sales volume

    4.21

    (5.9%)

    3.94

    (9.8%)

    4.44

    (22.4%)

    5.13

    (22.4%)

    5.50

    (14.1%)

    5.33

    (16.9%)

    4.54

    (12.2%)

    4.11

    (12.6%)

    4.62

    (10.8%)

    5.27

    (-1.0%)

    4.99

    (-1.0%)

    4.73

    (-0.4%)

    56.81

    (9.8%)

    Retail electricity sales volume

    Lighting

    1.19

    (-1.9%)

    0.95

    (-4.5%)

    0.90

    (-1.1%)

    1.11

    (11.3%)

    1.38

    (-3.6%)

    1.28

    (-6.1%)

    0.99

    (-5.5%)

    1.01

    (3.1%)

    1.21

    (-6.3%)

    1.83

    (-3.8%)

    1.71

    (-7.0%)

    1.35

    (-13.7%)

    14.91

    (-4.0%)

    Power

    2.28

    (6.8%)

    2.24

    (13.5%)

    2.41

    (17.7%)

    2.79

    (19.9%)

    2.83

    (15.6%)

    2.83

    (16.4%)

    2.67

    (18.9%)

    2.40

    (19.9%)

    2.43

    (19.1%)

    2.58

    (17.0%)

    2.52

    (15.4%)

    2.54

    (17.8%)

    30.52

    (16.5%)

    Subtotal

    3.47

    (3.7%)

    3.19

    (7.5%)

    3.31

    (12.0%)

    3.90

    (17.3%)

    4.21

    (8.5%)

    4.11

    (8.3%)

    3.67

    (11.1%)

    3.41

    (14.4%)

    3.63

    (9.3%)

    4.41

    (7.4%)

    4.23

    (5.1%)

    3.89

    (4.5%)

    45.42

    (8.9%)

    Electricity sales volume to other power

    companies

    0.74

    (18.1%)

    0.75

    (20.8%)

    1.13

    (68.5%)

    1.24

    (41.6%)

    1.29

    (37.0%)

    1.22

    (59.5%)

    0.87

    (17.1%)

    0.71

    (4.3%)

    0.99

    (16.6%)

    0.86

    (-29.3%)

    0.76

    (-25.2%)

    0.84

    (-18.4%)

    11.39

    (13.6%)

    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.

    Note3: Figures in parentheses indicate the percentage change from the previous fiscal year. Note4: There may be discrepancies in totals due to rounding.

    Average monthly temperature (Hiroshima city) (℃)

    Apr.

    May

    Jun.

    Jul.

    Aug.

    Sep.

    Oct.

    Nov.

    Dec.

    Jan.

    Feb.

    Mar.

    FY 3/2026

    15.5

    19.6

    24.7

    29.8

    29.7

    27.0

    21.0

    13.3

    8.3

    5.4

    7.9

    10.8

    Difference from average year

    0.7

    0.0

    1.5

    2.6

    1.2

    2.3

    2.2

    0.4

    0.8

    0.0

    1.7

    1.3

    Difference from previous year

    -2.0

    0.0

    1.2

    0.9

    -1.0

    -1.8

    -0.3

    -1.0

    0.9

    -0.3

    3.8

    0.2

    3. Monthly Change in Total Electricity Sales Volume

    22

    1. ‌Time Lag of the Fuel Cost Adjustment System(Image Diagram)

      FY 3/2026

      Profit

      Approx. 10.0 billion yen

      months ago)

      Fuel procurement price

      FY 3/2025

      Profit

      Approx. 11.0 billion yen

      Average fuel price

      (refer to fuel prices 3-5

      軸ラベル

      4/2024 4/2025 3/2026

      Note: Time lag of the fuel cost adjustment system is caused by the time lag of reflecting fuel prices in electricity rates (average fuel price).

    2. Consumption of Fuel

Unit

FY 3/2026 (A)

FY 3/2025 (B)

Difference (A-B)

Fuel oil

million liters

90

100

10

Coal

thousand tons

5,200

5,290

-90

LNG

thousand tons

1,100

1,080

20

4. Time Lag of the Fuel Cost Adjustment System and Consumption of Fuel 23

5. Capital Expenditure 21

‌(Billions of yen)

Non-Consolidated

Chugoku Electric Power Transmission & Distribution Co., Inc.

FY 3/2026 (A)

FY 3/2025 (B)

Difference (A-B)

FY 3/2026 (A)

FY 3/2025 (B)

Difference (A-B)

Capital

expenditure

170.2

(148.7)

249.7

(220.9)

-79.5

(-72.2)

100.6

78.7

21.9

Note: Figures in ( ) reiterate costs related to power sources.

5. Capital Expenditure

24

6. Interest-bearing Debts, etc. 22

End of FY 3/2026 (A)

End of FY 3/2025 (B)

Difference (A-B)

Interest-bearing debts

3,332.5

3,181.3

151.2

Bonds

1,281.6

1,326.2

-44.6

Long-term borrowings

2,016.5

1,752.5

263.9

Short-term borrowings

10.3

78.8

-68.4

Commercial paper

Lease obligations

24.0

23.6

0.3

  1. ‌Breakdown of Interest-bearing debts

  2. Interest rate

    FY 3/2026

    FY 3/2025

    Average

    0.94%

    0.72%

  3. Interest expense (Billions of yen)

(Billions of yen)

FY 3/2026

FY 3/2025

Interest expense

25.8

14.2

6. Interest-bearing Debts, etc.

25

‌Operating revenues (Consolidated)

1,694.6 1,628.7 1,529.2 1,442.3

1,136.6

(Billions of yen)

Electricity sales volume

(Billions of kWh)

56.43

54.60

52.62

51.75

56.81

Total

9.32 9.28 8.02 10.0211.39

Electricity sales volume to other power companies

Retail

47.11

45.33

44.60

41.72 45.42

electricity sales volume

FY 3/2022

FY 3/2023

FY 3/2024

FY 3/2025

FY 3/2026

FY 3/2022

FY 3/2023

FY 3/2024

FY 3/2025

FY 3/2026

Ordinary profit (Consolidated)

Profit (Consolidated)

98.4

68.5

-39.7

(Billions of yen)

(87.0)

128.5

(11.0)

80.2

(10.0)

-61.8

(-77.0) -106.7

194.0

(Billions of yen)

133.5

FY

3/2022

(-95.0)

FY

3/2023

FY

3/2024

FY

3/2025

FY

3/2026

FY

3/2022

-155.3

FY

3/2023

FY

3/2024

FY

3/2025

FY

3/2026

Note: Values in parentheses ( ) denote the impact of the time lag due to the fuel cost adjustment amounts.

7. Operating Revenues and Profit Trends

26

‌(Billions of yen)

FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2025 FY 3/2026

Level of ordinary profit excluding the effect of time lag due to the fuel cost adjustment system

82.6 79.3

50.5

28.7 37.3 28.0 28.7 34.3 33.9

8.1

17.1

3.4

5.1

-2.6

-9.4

-30.9

-36.4

-31.3

-37.2

-55.4

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

8. Trends in Ordinary Profit by Quarter

27

‌Shareholders' equity ratio (Consolidated)

17.0%

Shareholders' equity ratio

16.2% 16.8%

Total assets

(Billions of yen)

11.1%

14.6%

3,566.9

Net assets

4,040.0 4,133.2 4,360.9 4,620.5

(Billions of yen)

608.4 455.4

613.4

705.8

775.2

FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2025 FY 3/2026

Interest-bearing debts (Consolidated)

(Billions of yen)

3,332.5

3,181.3

3,022.0

3,004.2

2,527.7

FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2025 FY 3/2026

Average interest rate during term (Non-Consolidated)

0.48%

0.49%

0.59%

0.72%

0.94%

9-1. Financial Indicator Trends (1)

28

‌Cash flows (Consolidated)

Cash flows from operating

271.3

(Billions of yen)

237.2

activities Cash flows

Free Cash Flow

69.3

186.0

0.3

from investing

activities

-206.3

-62.6

-225.0

-202.0

1.0

-206.0 -287.7

-172.8

-358.8

-236.2

FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2025 FY 3/2026

EPS (Consolidated)/Dividends

273.70

190.61

EPS

40

0

27

27

Dividend 35

-110.21

370.59

(Yen/share)

-431.30

FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2025 FY 3/2026

9-2. Financial Indicator Trends (2)

29

‌PBR (Price book-value ratio)

1.0

(Multiple)

0.5 0.5

0.7

0.4 0.5

FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2025 FY 3/2026

Note: Figures are as of the end of the fiscal year (as of the end of March).

ROE (Return on equity)

25.4

(%)

2.3

-12.2

-6.3

13.5

ROE

15.0

14.4

9.2

8.3

ROE (Excluding the effect of the time lag of the fuel cost adjustment system)

-29.5

FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2025 FY 3/2026

9-3. Financial Indicator Trends (3)

30

ROIC(Return on invested capital) (%)

3.0

0.6

0.4

2.5

2.5

1.9

1.7

-1.2

-1.7

ROIC

ROIC(Excluding the effect of the time lag of

4.4

the fuel cost adjustment system)

FY 3/2022 FY 3/2023 FY 3/2024 FY 3/2025 FY 3/2026

9-4. Financial Indicator Trends (4)

31

  • ‌ We announced the Chugoku Electric Power Group Corporate Vision 2040 on September 30, 2025.

  • In light of the Japanese government’s declaration to achieve carbon neutrality by 2050, the Group has announced its initiatives for carbon neutrality by 2050.

    • Chugoku Electric Power Group Corporate Vision 2040

      https://www.energia.co.jp/e/ir/info/corporate_vision.html

    • Action Plan (summary of the management plan)

      https://www.energia.co.jp/ir/irkeiei/gaiyou.html (Japanese only)

    • Chugoku Electric Power Group’s initiatives for carbon neutrality by 2050

      https://www.energia.co.jp/tokusetu_site/carbon-neutral/index.html?topbnr=cn2050 (Japanese only)

    • Chugoku Electric Power Group Integrated Report

      https://www.energia.co.jp/e/ir/report/annual.html

    • Chugoku Electric Power Group promotion of sustainability management

      https://www.energia.co.jp/corp/esg/index.html (Japanese only)

  • We have announced the status of efforts to regain trust lost due to certain incidents.

    • Status of incident reoccurrence measures

https://www.energia.co.jp/corp/active/preventive/index.html (Japanese only)

Reference (The Group’s Initiatives)

‌This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

  • None of the information on this material is intended to solicit or induce purchase or sale of the Company’s stocks and bonds. Moreover, Chugoku Electric makes no guarantees whatever regarding the contents of this material.

  • Persons considering investment in the Company should without fail read in advance the stock and bond reports and other financial literature issued by the Company, and make decisions based on their own judgment. Though great care is exercised in the preparation of such literature, Chugoku Electric and the other information providers

    shall not be liable in any manner for any loss whatever incurred as a result of erroneous information contained therein or in this material.

  • Items in Chugoku Electric’s current plans and strategies, etc., published on this material which are not yet historical fact are projections concerning future performance and as such involve factors of risk and uncertainty which means that actual performance in the future may differ to a large extent from projections published here. Therefore, Chugoku Electric does not guarantee the reliability of such projections.

‌For Questions or Comments,

Please Contact the Investor Relations Section at the Address Below:

4-33 , Komachi, Naka-ku, Hiroshima 730-8701 Japan

The Chugoku Electric Power Co., Inc.

Corporate Management Division E-mail: [email protected]