Growth Through Business Activities[PDF:1,710KB]

Sato Hiroki

Senior Managing Executive Officer, General Manager of

Global Business Division

‌▶ New Value Creation

Value Co-Creation Story

We aim to contribute to global decarbonization as a Japanese utility by forming an optimal portfolio that integrates four segments:

Maximizing Provided Value and Returns

the Green Field, Blue Field, Retail/Transmission & Distribution (T&D)/New Services, and Frontier Field.

• Four segments

  Business Environment (Opportunities and Risks)
  
  

  Frontier Field

  Geothermal (Eavor)• Small Modular Reactor• Fund Investment• SAF•Battery•ZEB• Mineral Resources• Cyber Security,

  etc.

  Business deployment in island countries

  Green Field

  (Clean Energy Solutions)

  Renewables

  Solar power Grid Management

  Geothermal

  Rising global interest in renewable energy projects aimed at realizing a decarbonized society is expanding investment opportunities that contribute to decarbonization. In addition, with rising energy demand in emerging countries, particularly in Asia, we seek to develop and expand into new markets by partnering with international and local companies. In the area of overseas consulting, we provide energy solutions tailored to local needs, thereby contributing to the development of regional communities.

  
  
  

  New Value Creation

  On the other hand, there is a risk of deteriorating profitability due to rising labor and material costs stemming from higher interest rates and inflation. We also recognize that political instability may impact energy policies and project progress,

  requiring us to address geopolitical risks accordingly.

  Blue Field

  Green Hydrogen

  Balancing output fluctuation of renewable energy

  Retail/T&D*2 / New Services

  Progress and Review of Chubu Electric Power Group Medium-term Management Plan
  
  

  (Lower Carbon Solutions)

  Water Electrolysis

  (Hydrogen production)

  + － H2 H2

  Integrated Energy System

  Battery

  (Community & Solutions)

  Power Supply for non-electrified regions

  Sources of Value Creation

  Planning to Carry Out Strategic Investments Totaling 150 Billion Yen from FY2022 to FY2025

  CO2 Transportation

  Seawater Desalination

  CCUS

  VPP/Energy Management

  Smart city

  Microgrid,

  Power distribution business

  As of the end of FY2024, the amount of cumulative investments from FY2022 is approximately 90 billion yen. While selectively targeting investments in response to changing conditions such as interest rate hikes and inflation, we are progressing steadily toward our medium-term management target of 150 billion yen.

  Biomass Power Plant BECCS*1

  Power from Waste with CCS

  Resource Recycling

  e-Mobility

  Aiming to Achieve a ROA in the Upper 3% Range and Around 20 Billion Yen in Profit Contribution by FY2030

  Eneco, in which we invested in March 2020, is actively expanding its business with a goal of achieving net-zero greenhouse gas emissions by 2035. Its impact on our consolidated financial results in FY2024 amounted to 4.9 billion yen, and it is now

  *1 BioEnergy with Carbon Capture and Storage *2 Transmission & Distribution *3 The above-mentioned projects are just examples.

  becoming a steadily profitable business.

  Data

  In FY2024, we also completed our investment in NuScale Power, a U.S.-based small modular reactor developer, furthering our business expansion. By the late 2020s, we aim to exceed 10 billion yen in profit contribution from our global business and reach 20 billion yen by FY2030.

  To achieve our FY2030 targets, we will continue rigorous profit and loss management while executing investment and asset reallocation strategies with optimal portfolio formation in mind.

  Furthermore, we will enhance our ability to select new projects, maintaining a balance between a stable earnings base and investments in new technologies and fields.

  Chubu Electric Power Group Report 2025 64

  
  
  

  ▶ New Value Creation

  Value Co-Creation Story

  Global Business

  Initiatives for Growth and Future Business Development
  
  

  Growth Strategies by Region

  In Europe, we position Eneco, a frontrunner in renewable energy development and customer-oriented services in the Netherlands, as our platform and are expanding our renewables and retail business centered around Eneco. In FY2024, we acquired shares of an offshore wind power generation company in the Netherlands from Eneco, marking our first direct investment in an overseas offshore wind power generation project. We are also considering expansion into Eastern Europe, including the power transmission/distribution and hydropower sectors, which are outside Eneco's business scope.

  Recognizing Asia as a high-potential and growing market for renewable energy, we are promoting solution-based services to address social challenges, such as electrification of non-electrified areas through renewables and distribution business, thereby enhancing wellbeing.

  In Vietnam, through Bitexco Power, we are focusing on hydropower and solar power, and plan to expand into offshore wind power and other renewables in response to increasing electricity demand. In India, OMC provides clean and stable solar-based

  electricity in regions with weak power infrastructure, using battery storage systems as well.

  By leveraging knowledge gained from these investments, we aim to expand operations in Japan and other countries, strengthening and growing our earnings base.

  Going forward, we will strive for sustaining and enhancing profitability and realizing climate neutrality at the same time, and continue to expand businesses that contribute to global decarbonization.

  Currently, the Green Field, with a large and maturing market, plays a central role. However, considering synergies across the four segments, we will carefully select investment targets in accordance with the rules established for investment decisions and withdrawal criteria.

  Maximizing Provided Value and Returns

  Integration of Overseas and Domestic Businesses

  We aim to create further business opportunities by combining the development technologies, know-how, and challenges acquired from our overseas business expansion in leading sectors with our technical expertise, customer base, trust relationships, and the strengths of our extensive business operations in community support infrastructure cultivated through our domestic power business.

  [Geothermal technology through Eavor]

  We have invested in a commercial project in Germany led by Eavor, a Canadian startup developing closed-loop geothermal technology.

  New Value Creation

  By participating in this project, we are gaining insights into geothermal power generation methods that do not require steam, which is a characteristic of conventional technologies, and plan to explore business deployment in Japan.

  
  
  

  While Japan has the third-largest geothermal resources in the world and we recognize its high development potential, we are aware of various challenges including legal frameworks to support implementation and application of technologies and securing community understanding. We will first work to ensure the success of the German project, enhance

• Future portfolio image

  Europe

  Renewable energy, retail, new services business

  Comprehensive energy business through Eneco

  Germany

  Geothermal power generation and district supply business

  First commercial project utilizing Eavor's closed-loop geothermal technology

  Japan

  Canada

  Deployment of new geothermal technology

  Global deployment of closed-loop geothermal utilization technology through Eavor

  awareness and presence of closed-loop geothermal technology in Japan, and conduct active public relations activities.

  
  
  

  [Nagoya Port CCUS project]

  Capture & Effective Utilizationof CO2 emitted from Nagoya Port

  Maritime transport by liquefied CO2 carriers

  Storagein Tangguh

  
  
  

  At the end of March 2024, we completed a feasibility study with bp for a CCUS project aimed at decarbonizing the Nagoya Port area. We confirmed the feasibility of a value chain using

  Provision by Eavor Technologies

  Sources of Value Creation

  Netherlands

  Offshore wind power project

  Offshore wind power project that takes ecosystem protection into consideration

  Decarbonization business

  Nagoya Port CCUS project, etc.

  Vietnam

  USA

  Development of small modular reactor

  Global expansion of small modular reactors developed by NuScale Power

  USA

  Collaboration with infrastructure funds

  Indonesia's Tangguh field as the storage site.

  We are targeting business commencement around FY2030, and have signed collaboration agreements not only with bp but also with Santos and INPEX. By combining the extensive

  India

  Mini-grid business

  Mini-grid business through OMC Power

  Renewable energy business

  Renewable energy business through Bitexco Power

  North American energy business through Lotus Infrastructure Partners

  CCS project development experience of these companies with our expertise as an energy provider in the Chubu region, we are working

  
  
  

  Data

  toward realizing CCUS at Nagoya Port. We are also conducting studies on cost optimization

  across the value chain and establishing technologies for liquefied CO2transport vessels, and

  Note: Each of the four segments is color-coded in the figure. Circle size represents the scale of future investment.

  plan to apply the knowledge gained to contribute to decarbonization across all of Asia.

  Chubu Electric Power Group Report 2025 65

  
  
  

  Otani Shinya

  Senior Managing Executive Officer, General Manager of Business Development Division

  
  
  

  ▶ New Value Creation

  Value Co-Creation Story

  New Growth Fields

  Maximizing Provided Value and Returns

  Combining our strengths with the power of DX to develop new businesses with a focus on the Healthcare, Food, Community development + Energy domains, creating new services that make local communities richer and more sustainable.

• Cumulative amount of strategic investments by purpose (FY2022-FY2024)

  Business Environment (Opportunities and Risks)
  
  

  ¥4.3 billion

  Total

  ¥10.2 billion

  Fund investments

  ¥5.9 billion

  Business investments

  Japanese society faces various risks, including declining competitiveness due to demographic and industrial structural changes and the growing severity of natural disasters. We believe that many of these social issues can be resolved by leveraging data and innovative technologies, and transitioning toward decentralized and circular lifestyles and economies. The Business Development Division is particularly focused on addressing social issues in the domains of Healthcare, Food, Community development + Energy.

  New Value Creation

  The healthcare domain is facing the ongoing challenge of detecting pre-symptomatic conditions early to extend healthy life expectancy. In the agri-food domain, the challenge is securing workers to sustain farming systems. In local regional transportation, the push for carbon neutrality and the 2024 problem in the transport industry require increasingly complex and sophisticated solutions, necessitating novel responses.

  The mission of the Business Development Division is to solve these social issues by creating new services, which we believe will also enhance the corporate value of our Group. We see the challenge of solving social issues as a business opportunity and will boldly pursue business development by leveraging the knowledge and management resources cultivated through our electric power business.

• Cumulative number of business investments by domain (FY2022-FY2024)

  Healthcare

  5

  +E (Energy)

  6

  Total

  17

  Community development

  Food and agriculture

  2

  4

  Progress and Review of Chubu Electric Power Group Medium-term Management Plan
  
  

  Sources of Value Creation

  As the incubation organization within our Group that "generates ideas" and "nurtures new businesses," the Business Development Division is engaged in developing new businesses. In the past three years (FY2022-FY2024), we have made investments totaling 10.2 billion yen. With the aim of early business creation through the exploration of new technologies and business alliances, we are making strategic investments in domestic and international startups and venture capital funds that have strengths in the fields we are targeting.

  Data

  Current projects include the "Kizuna Net Contact Network," an information distribution service, and "e-Frail Navi," a service that uses AI to analyze electricity usage and detect frailty risk. We have also established subsidiaries such as TSUNAGU Community Analytics, which aims to solve social issues through advanced analysis of various data from our Group; TSUNAGU Community Farm, which operates a fully artificial-light-type lettuce factory; and Chuden Telemetering LLC, which provides automated meter reading services for water and gas using the smart meter communication network.

  We will continue to strengthen external collaborations through proactive investment, accelerating the delivery of services that enrich customers' lives.

  Chubu Electric Power Group Report 2025 66

  
  
  

  ▶ New Value Creation

  Value Co-Creation Story

  New Growth Fields

  Initiatives for Growth and Future Business Development
  
  

  Incubation across the domains of Healthcare, Food, Community development + Energy

  Healthcare Domain

  
  
  

  In the healthcare domain, leveraging our Group's strengths, we are promoting DX using electricity data from smart meters to create value that connects individuals who need medical support with appropriate service providers, developing services that detect physical and mental health issues at an early stage. Specifically, "e-Frail Navi," a service where AI analyzes electricity usage to efficiently detect frailty risks, is being deployed to municipalities. As of April 2025, we have steadily gained orders from 29 municipalities.

  To further enhance this service, in October 2024 we formed a capital and business alliance with Total Future Healthcare, Inc. (TFH). By combining TFH's advanced sensing technology with our electricity data analysis technology, we aim to expand the scope of detectable conditions to include dementia, depression, and lifestyle-related diseases, thereby achieving more comprehensive medical support.

  Food and Agriculture Domain

  In agriculture, we are taking on the challenge of creating new value by making farming sustainable and reducing environmental impact. We are building an agricultural model that leverages cutting-edge technologies, including DX tools utilizing AI analysis, and playing a hub role in production and distribution, thereby contributing to the sustainability and revitalization of local communities.

  
  
  

  Specifically, we are conducting a demonstration of rice cultivation using water-saving dry direct seeding, which does not require paddy flooding.

  This method not only significantly reduces labor of farm work but also generates environmental value by cutting greenhouse gas emissions. This demonstration is being conducted with NEWGREEN Inc., an agricultural startup in which we invested in April 2024. Going forward, we will pursue further investment and demonstrations with the aim of creating and building a rice supply chain with high environmental value.

  Regional Transportation Business Domain

  We aim to create value through both regional transportation services that support enriched living and decarbonization promotion through vehicle electrification and efficient utilization.

  Specifically, we offer "OPCAT," a charging management system that uses AI to automatically generate low-cost vehicle operations, considering electricity rates and vehicle

  activity, for commercial EVs such as route buses and delivery trucks.

  Furthermore, through a capital and business alliance with SWAT Mobility Pte. Ltd., we are working to create further value for regional transportation by developing the system into an

  Maximizing Provided Value and Returns

  AI-based on-demand transit operation system incorporating route optimization technology.

  Power Infrastructure Utilization Domain

  We provide telemetry services such as automated meter reading for water and LP gas using the electric power smart meter infrastructure. In addition to high communication quality, we also provide a cloud-based meter data management system that can immediately reflect customer needs through agile development. As of November 2024, cumulative sales of our communication terminals surpassed 300,000 units, with orders steadily increasing.

  Looking ahead, we aim to go beyond telemetry services to provide integrated customer and equipment management systems tailored to customer needs.

  
  
  

  New Value Creation

  By utilizing the acquired data, we will work with other regional power transmission and distribution companies across Japan to provide high-quality infrastructure for businesses, such as streamlining gas cylinder delivery operations and pipeline network analysis for water utilities, as well as services focused on residents, such as visualizing consumption, monitoring single-person households, and disaster prevention services, to realize smart cities.

  Sources of Value Creation

  Developing Business Transformation Talent and Strengthening Our Business Foundation

  In promoting these initiatives, we are actively leveraging external resources. The Chubu region has a strong manufacturing industry base, making it an optimal location for business expansion. By leveraging this regional characteristic, we are actively engaging in external collaborations and expanding our networks to explore new business opportunities.

  Specifically, we are building and strengthening relationships with venture capital and startup companies through exchanges utilizing STATION Ai and the NAGOYA INNOVATOR'S GARAGE, as well as through investments by our corporate venture capital unit. We are also exploring collaborations with academia, including local universities, in both business and human resource development.

  Data

  Through these activities, we are organizing management resources such as data, human networks, customer bases, and know-how gained, and examining how they can be utilized as a business platform across the entire Group. By combining these with the characteristics of our customers and local communities, we believe we can deliver further value tailored to specific needs.

  Chubu Electric Power Group Report 2025 67

  
  
  

  ▶ New Value Creation

  Value Co-Creation Story

  Regional Infrastructure Business Building a decarbonized, circular economy, and sustainable local community by promoting resource recycling, water supply

  and sewerage initiatives, and forestry projects

  
  
  

  As a company supporting society and local communities, we will address challenges that will become increasingly apparent, such as labor shortages leading to infrastructure deterioration and the intensification of natural disasters due to global warming. In doing so, we will view societal changes such as the advancement of DX and GX as business opportunities. By leveraging the Chubu Electric Power Group's strengths-accumulated management resources and know-how in public utility infrastructure, customer relationships, and trust-we will promote regional

  Forest

  Effective use of forest resources

  infrastructure businesses together with various partners and contribute to the realization of sustainable local communities.

  Specifically, we will enter upstream to downstream segments of our priority areas-forestry, water supply and sewerage, and resource recycling-and expand the overall profit across the supply chain through digitalization, regional integration, multi-functionalization, and increased efficiency. Furthermore, by integrating even our existing fields such as energy across domains and utilizing collected data, we will optimize infrastructure development and operations and build

  Utilization of residue

  new business models that enhance the safety, security, and convenience of local communities. Through these initiatives, we aim to realize a decarbonized, circular (circular economy), and sustainable society as set forth in our Management Vision 2.0.

  Maximizing Provided Value and Returns

  • Utilization of our existing technologies and inter-business collaboration

• Areas where data can be collected for new services

Resource Recycling

New Value Creation

Further utilization of unused resources and environmental value

Forest environmental preservation

Forest management (Investment /

Forest management)

Early-growing tree cultivation

Waste

Improvement of watershed environment

Lumber processing Chips / Pellets

• SAF / Bioethanol

• Biomass

  • Collection and transport

    • Biogas power generation through

methane fermentation

• Waste-to-energy ■ Plastic material recycling

  Final disposal

  Optimal allocation of water resources

  Watershed DX

  Water purification plant

  Wide-area and efficient operations

  Sewage treatment plant

  Sewage sludge treatment

  Sources of Value Creation

  Valuables

  • Dams

    Water supply and sewerage

    Enhance efficiency and sophisticate water supply and sewerage infrastructure operation

• Hydro

• Agriculture ● Smart water

  meters

  • ● Smart electricity meters

    Improving safety, security, and convenience

    Collection of unwanted items

    Recycling center

    • Clothing and miscellaneous goods recycling

    • Home appliance recycling

Industry

Customers data Resource tracking data

Integration, regionalization, and digital transformation of infrastructure facilities

Expansion and fair distribution of profits through participation in the entire

supply chain

Utilization of collected data and development of new services through collaboration with other company businesses

Data

Decarbonized society Recycling-oriented society Infrastructure efficiency Improving resilience Improving convenience Sustainable society

Chubu Electric Power Group Report 2025 68

▶ New Value Creation

Value Co-Creation Story

Regional Infrastructure Business

Forest management

Promotion of utilization

Large-scale lumber processing

DX utilization

Consolidation Mechanization

Departure from conventional management

Biomass

Heat supply (biomass boiler)

Recycling of thinning Early-growing

and pruned branches tree cultivation

Bioplastics

Appropriate profit allocation

SAF

Examples of initiatives

Investment in DK Corporation

We acquired a portion of the shares of DK Corporation with the aim of participating in the water and sewage sector.

Maximizing Provided Value and Returns

The Company operates in the water and sewage sector, offering services such as meter reading and fee collection, system development and operation tailored to the needs of local public enterprises, and water supply equipment management. In particular, it holds the top national share in meter reading and fee collection services based on water-supplied population*. Going forward, by providing services that transcend traditional business boundaries, we will contribute to realizing a decarbonized society, a recycling-oriented society, and a circular economy, as well as solving challenges faced by municipalities and customers.

New Value Creation

*Population residing within the water supply area and receiving water from a water utility.

Dams

Water supply

(multi-infrastructure)

Hydro

Renewable Energy

Improvement of BCP functions with one-stop service

Waste

General waste

Water supply and sewerage

(sludge from water treatment facilities)

Product sales

Industrial waste

General households / Governments

Manufacturers

Food waste

Combustible waste

Waste plastic

Primary industries

Intermediate processing facilities

Forestry Fisheries

Residue, livestock manure, etc.

Recycled plastic products

Biogas power generation through methane fermentation

Waste-to-energy

Plastic material recycling

Livestock Agriculture

farming

Liquid fertilizer

Final disposal

Residue

Residue

Agriculture

Industrial water facilities

Efficient operation of water and sewage facilities (DX, Asset Management)

Carbon

Water purification plant

Sources of Value Creation

DK Corporation

Valuables

Governments / Corporations / General households

Product sales

Redistribution

Manufacturers

Clothing, Small home

etc.

appliances

Collection

Clothing, etc.

Recycled products / Materials

ECOMMIT Co., Ltd.

Small home appliances

Strengthening customer touchpoints / Data acquisition

Installation of general collection points (PASSTO)

Home appliance recycling certified businesses

Government clean centers

Data valuable to manufacturers

×

Data related to customer touchpoints

Providing value through the integration of energy and resource circulation

Waste treatment plant

neutrality

Pumping stations

Sewage treatment plant

Customer

Utilization of usage data

Optimal facility development Efficient operations

Smart water meters

Data

Optimal allocation of water resources

Chubu Electric Power Group Report 2025 69

▶ New Value Creation

Value Co-Creation Story

Real Estate Business

Aiming to create a virtuous cycle of sustainable growth for both the region and corporate value, we are promoting "community creation that coexists with the local area and endures over time by adapting to changes in the era and environment."

Maximizing Provided Value and Returns

Our real estate business plays a key role in our new growth area, as it contributes to the provision of new services through community creation and the sale of energy to properties we develop and own. It also holds potential for expanding revenue through the effective use of land and buildings held by our Group. To accelerate this initiative and promote the "provision of new added value" by combining products and services that offer energy management, safety, and comfort,

we established the Real Estate Business Division in April 2025. This new division consolidates functions such as collaboration with other Chubu Electric Power Group companies and the effective use of owned assets. By using energy services as a foundation and combining them with added value to meet various local needs, we aim to achieve a virtuous cycle of sustainable regional growth and enhanced corporate value through community creation.

Expansion of rental business revenue Development projects on former dormitory and company housing sites

Further growth of core businesses Expansion of the business portfolio Business development focused on Japan's five major metropolitan areas

Strategy planning, development of plans, and monitoring

Support for inter-company and inter-business collaboration (use of commercial offerings, horizontal information sharing) Human resource development

Integration of functions

Support and collaboration with real estate group companies

Community creation planning and implementation

Management and effective utilization of owned assets

New Value Creation

Sources of Value Creation

Data

Chubu Electric Power Group Report 2025 70

▶ New Value Creation

Value Co-Creation Story

Real Estate Business

Maximizing Provided Value and Returns

We are addressing the needs to solve challenges faced by communities across Japan-such as declining birthrates and aging population, population decline, weakening social ties, and loss of vibrancy-by fully leveraging the real estate know-how of group companies Chuden Real Estate and ES-CON. In addition to condominiums and detached houses, we are undertaking complex developments that include facilities supporting diverse lifestyles such as shopping, medical

care, nursing care, and child-rearing, as well as plazas and parks where anyone can gather and relax. Through these developments, we are promoting intergenerational interaction, working to create communities where people of all ages can live safely and comfortably, and contributing to regional revitalization.

New Value Creation

April 2024: Commercial facility opens

June 2025: Condominium building completed

October 2024: Start of residential lot sales April 2025: Community opening

February 2023: Condominium building completed March 2024: Senior residence completed

2027: Hotel scheduled to open

March 2025: Opening of commercial facility and hotel

November 2026: Condominium building scheduled for completion

Sources of Value Creation

Our Group's real estate business has been led by Chuden Real Estate and ES-CON. Moving forward, the Real Estate Business Division will take the lead, combining their expertise in real estate development and management with our Company's knowledge and experience in the energy business. We will provide services that maximize environmental value through the optimal generation and consumption of renewable energy, improve resilience through power supply to evacuation centers during disasters, and create environments where the elderly can live with peace of mind through healthcare solutions utilizing electricity data. In particular, compared to standalone development of condominiums or housing, community development enables the provision of services tailored to regional characteristics and needs, which we believe will contribute to resolving local issues and lead to long-term improvement in community satisfaction.

Data

We will actively participate in new community creation projects, strive to expand and enhance services that improve the appeal and value of local areas, and promote a real estate business rooted in the community-unique to our Group.

Around 2029: Community opening (planned)

Chubu Electric Power Group Report 2025 71