Chugoku Electric Power : Supporting Document of FY2025 Financial Results

The Summary of Financial Results for FY 3/2025(April 1 through March 31, 2025)

The Chugoku Electric Power Co., Inc.

April 30, 2025

In this report, the term Fiscal Year 3/2025 refers to the period between April 1, 2024 and March 31, 2025.

1. Financial Results for FY 3/2025 ・・・・・・ ① ～ Ⓑ

2. Financial Results Forecast for FY 3/2026 and Dividend Policy

・・・・・・ ⑨ ～ ⑰

(Reference) Summary of Financial

Results for FY 3/2025

・・・・・・ ⑱

(Reference) Supplemental Data ・・・・・・ ⑲ ～ ㉛

Contents

I. Financial Results for FY 3/2025

• Operating revenues fell by ¥99.5 billion year on year to ¥1,529.2 billion due to factors such as a decline in fuel cost adjustment amounts in conjunction with falling fuel prices.

• Operating profit fell by ¥77.6 billion year on year to ¥129.1 billion. This was mainly due to a decline in operating profit from the power transmission and distribution business, in addition to a reduction in the profit from the time lag of the fuel cost adjustment system and a decline in the total electricity sales volume, despite a profit improvement due to the restart of Shimane Nuclear Power Station Unit 2.

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

  ¥65.5 billion year on year to ¥128.5 billion.

• Profit attributable to owners of parent after recording extraordinary income/loss

and deducting income taxes fell by ¥35.0 billion year on year to ¥98.4 billion.

1-1. Summary of Consolidated Financial Results

１

(Billions of yen)

1-2. Summary of Consolidated Financial Results

２

(Billions of yen)

Note 1: The Company recorded gains of ¥12.1 billion on sales of nuclear fuel.

Note 2: 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

３

Consolidated Ordinary Profit -65.5 billion

３．経常利益の変動要因【連結】４

３．経常利益の変動要因【連結】４

3. Factors Affecting Consolidated Ordinary Profit

４

220

（Billions of yen） Time lag of the fuel cost adjustment system

200

180

160

140

FY 3/2024 : Approx. +87.0 billion FY 3/2025 : Approx. +11.0 billion

Profit improvement from restarting of nuclear power station

Others

120

100

80

60

40

20

194.0

-8.0

Decline in the total electricity sales volume

9.0

Chugoku Electric Power Transmission & Distribution Company

128.5

0

【107.0】

※Rebound effect from the period in the first quarter of FY 3/2024 when the old unit prices

were applied to electricity rate. （The regulated rate revision was dated on June 1, 2023）

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

【117.5】

（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.

4. Total Electricity Sales Volume

５

（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.

5. Power Generated and Received

６

(Billions of yen)

6. Summary of Segment Information

７

• Key factors

Note: Crude oil and imported coal CIF prices are preliminary figures for FY 3/2025.

7. Key Factors

8

II. Financial Results Forecast for FY 3/2026 and Dividend Policy

1. Summary of Consolidated Financial Results Forecast 9

• Operating revenues are expected to decrease mainly due to a decrease in fuel cost adjustment amounts in conjunction with falling fuel prices, despite an increase in the total electricity sales volume.

• Although there are positive factors such as an increase in nuclear power operations and an increase in the total electricity sales volume, profit is expected to decrease due to the factors such as the effect of increased competition in wholesale and retail businesses caused by a decline in market prices, and a decline in profit from the power transmission and distribution business due to the rebound effect from the previous fiscal year's summer and winter temperatures.

  （Billions of yen)

  	FY 3/2026 Forecast (A)	FY 3/2025 (B)	Difference （A-B）
  Operating revenues	1,400.0	1,529.2	-129.2
  Operating profit	95.0	129.1	-34.1
  Ordinary profit	85.0	128.5	-43.5
  Profit attributable to owners of parent	65.0	98.4	-33.4

  Shareholders’ equity ratio

  Approx.16.5% (Approx.18.8%(Note))

  16.2% (18.5%(Note))

  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.

  FY 3/2025

  Consolidated Ordinary Profit -43.5 billion

  FY 3/2026

  Forecast

  （Billions of yen）

  200

  150

  Increase in nuclear power operations

  15.0

  Increase in the total electricity sales volume

  10.0

  Decrease in operating profit in the power transmission and

  -30.0

distribution business

100

50

128.5

Time lag of the fuel cost adjustment system

FY 3/2025 : Approx. +11.0 billion FY 3/2026 : Approx. +10.0 billion

Increased competition (wholesale and retail businesses )

Decrease in supply and demand adjustment transactions, etc.

-23.3

Others

85.0

0

【117.5】

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

【75.0】

2. Factors Affecting Consolidated Ordinary Profit

(Compared to FY 3/2025)

10

（Billions of yen）

3. Financial Results Forecast by Segment (Compared to FY 3/2025)

11

• For FY 3/2026, although we expect a decline in profit due to the effect of increased competition in wholesale and retail businesses caused by a decline in market prices, as well as a decline in profit from the power transmission and distribution business, we expect to secure a certain level of profit due to an increase in nuclear power operations.

• However, in addition to the current situation, such as further increased competition in the electricity wholesale and retail businesses and an increase in procurement costs of materials and equipment due to rising prices, there are also concerns about the impact of the U.S. tariff measures on economic activities, and we are aware that uncertainty about the future is increasing.

• We will continue to aim to secure stable profit and restore our financial base by ensuring stable Shimane Nuclear Power Station operations based on the fundamental premise of ensuring safety, strengthening the earnings power of our wholesale and retail power businesses, improving the efficiency of our overall management, and enhancing our risk management, including market risk.

  4. Stance Regarding Financial Results Forecast

  12

  	FY 3/2026 Forecast	FY 3/2025
  Total electricity sales volume （Billions of kWh）	57.4	51.75
  Exchange rate (¥/$)	145	153
  All Japan CIF crude oil price ($/b）	75	82.4
  Nuclear capacity factor （%）	86	27.6

  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）

5. Key Factors

13

6-1. Dividend Policy (For FY 3/2025) 14

• With respect to our allocation of dividend to shareholders, our highest priority will be restoring and strengthening our financial base until we reach the consolidated shareholders’ equity ratio of 15%. Until then, our dividend ratio will be 10%.

  Once the consolidated shareholders’ equity ratio is over 15%, we will gradually raise our dividend ratio.

• We had previously announced that if the consolidated shareholders’ equity ratio for FY 3/2025 exceeds 15%, then we plan to revise our dividend policy from FY 3/2026, and that for FY 3/2025, we will pay dividends in accordance with our policy of a 10% dividend ratio as we strive to restore and strengthen our financial base.

• Based on this, the Board of Directors has resolved at a meeting held today to pay an annual dividend of ¥27 per share for FY 3/2025, with the year-end dividend set at ¥22 per share. This approach will be proposed at the annual general meeting of stockholders to be held in June.

《Dividends》 （Dividends per share）

6-2. Dividend Policy (For FY 3/2026 and beyond）

15

• Taking into consideration our current financial situation and the risk of future fluctuations in business performance, we will continue to pay dividends based on performance in accordance with our dividend ratio.

• Regarding the level of our dividend ratio, we are still in the process of restoring our financial

  base and will therefore aim for a basic dividend ratio of 12%.

• Going forward, we will strive to pay an annual dividend of at least ¥10 per share, assuming we keep increasing management stability.

• Based on the above policies, we will pay dividends following the standard of dividend according to profit attributable to owners of parent.

• However, in the event that profit attributable to owners of parent fluctuates significantly due to extraordinary gains or losses or other special factors, dividend will be set in light of the impact of such fluctuations without relying on the standard of dividend.

• We will consider revising this dividend policy when the consolidated shareholders’ equity ratio is expected to return to 20%.

6-3. Dividend Policy (For FY 3/2026 and beyond）16

〔Standard of dividend〕

(Note) Dividend will be determined based on the above standard even when profit attributable to owners of parent is equal to or exceeds ¥138.0 billion.

《Dividends》 （Dividends per share）

6-4. Dividend Policy (Forecast for FY 3/2026）

17

(Reference) Summary of Financial Results for FY 3/2025

• Consolidated Statements of Operations

• Consolidated Balance Sheets

（Billions of yen）

（Billions of yen）

Note 1: The operating revenues ranking is not indicated because the application of the Accounting Standard for Revenue Recogniti on since FY 3/2022-1Q has invalidated comparisons to past operating revenues.

Note 2: Increases/decreases in profit in the overview of financial results are based on ordinary profit. Note 3: Rankings indicate ranking since FY 3/1995.

Note 4: Rankings are simple comparisons against past amounts as of the time of each settlement.

Note 5: 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.

Statements of Operations and Balance Sheets (Consolidated) 18

(Reference) Supplemental Data

(Billions of yen)

1. Summary of Cash Flows

19

(Billions of yen)

2-1. Income Statement

20

(Billions of yen)

＜Reference＞Electricity demand in the Chugoku region

（Billions of kWh）

2-2. Income Statement

21

• FY 3/2025 (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.

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) (℃)

3.Monthly Change in Total Electricity Sales Volume

22

1. Time Lag of the Fuel Cost Adjustment System（Image Diagram） 23

   FY 3/2024

   ProfitApprox. 87.0 billion yen

   Average fuel price

   軸ラベル

   (refer to fuel prices 3-5 months ago)

   FY 3/2025

   ProfitApprox. 11.0 billion yen

   Fuel procurement price

   2023/4 2024/4 2025/3

   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).

   1. Procurement volume (Note 1)

      	Unit	FY 3/2025 (A)	FY 3/2024 (B)	Difference (A-B)
      Fuel oil	million litters	90	410	-320
      Coal (Note 2)	thousand tons	5,960	5,390	570
      LNG (Note 2)	thousand tons	1,570	1,750	-180

      Note 1: The impact of inventories included Note 2 :Sales included

   2. Consumption volume

5. Procurement and Consumption of Fuel

24