Hokkaido Electric Power Company,incorporatedTSE: 9509

Nine months ended December 31,2024

Feb 7, 2025 at 7:00 AM UTC · Issued by Hokkaido Electric Power Company,incorporated

February 7, 2025

Each position

Company name:	Hokkaido Electric Power Company, Incorporated
Representative:	Susumu Saito, Representative Director, President and

(Code: 9509, TSE Prime Securities and TSE Bills Exchange)

Contact: Naoaki Bizen, Account Management Group Leader, Accounting Dept. (TEL.011-251-1111)

Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2025

(Completion of Mid-term Review by Certified Public Accountants, etc.)

"On January 31, 2025, the Company disclosed" "Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2025 [Japanese GAAP]" "(Consolidated), and hereby announces that the mid-term review of the quarterly consolidated financial statements by certified public accountants, etc. has been completed."

There are no changes to the quarterly consolidated financial statements announced on January 31, 2025.

Above

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Note: 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.

Consolidated Financial Results

for the Nine Months Ended December 31, 2024

[Japanese GAAP]

											February 7, 2025
Company name: Hokkaido Electric Power Company, Incorporated
Listing: Tokyo, Sapporo
Securities code: 9509
URL: https://www.hepco.co.jp/
Representative: Susumu SAITOU	President and Director
Inquiries: Naoaki BIZEN	Manager, Accounting & Finance Dept.
Telephone: +81-11-251-1111
Scheduled date to commence dividend payments: -
Preparation of supplementary material on financial results: Yes
Holding of financial results briefing: None
						(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated Financial Results for the Nine Months Ended December 31, 2024 (April 1, 2024 to December 31, 2024)
(1) Consolidated Operating Results							(Percentages indicate year-on-year changes.)

			Net sales		Operating profit	Ordinary profit	Profit attributable to
				owners of parent

Nine months ended		Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen		%
December 31, 2024		646,403		(5.7)	64,495		(20.4)	56,804	(23.0)	54,665		1.9
December 31, 2023		685,581		9.9	81,030		-	73,793	-	53,661		-

(Note) Comprehensive income:	Nine months ended December 31, 2024:
	Nine months ended December 31, 2023:

¥	58,003 million	[	0.0%]
¥	58,000 million	[	-%]

	Basic earnings	Diluted earnings per
	per share		share

Nine months ended	Yen			Yen
December 31, 2024	261.07			-
December 31, 2023	256.06			-

(2) Consolidated Financial Position

	Total assets		Net assets	Capital adequacy ratio

As of	Millions of yen		Millions of yen	%
December 31, 2024	2,190,798			384,745	16.9
March 31, 2024	2,141,691			333,528	14.9
(Reference) Equity: As of	December 31, 2024:	¥	370,130 million
As of	March 31, 2024:	¥	319,383 million

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2. Dividends

				Annual dividends

	1st	2nd	3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end

	Yen		Yen	Yen		Yen	Yen
Fiscal year ended March 31, 2024	-		5.00	-		15.00	20.00
Fiscal year ending March 31, 2025	-		10.00	-

Fiscal year ending March 31, 2025						10.00	20.00
(Forecast)

(Note) Revision to the forecast for dividends announced most recently:	None

(Note) The above "Status of Dividends" shows the status of dividends on common stock.

For the status of dividends on class shares (unlisted), which have different rights from those of common shares issued by the Company, please refer to " Dividends for preferred stock" below.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2025(April 1, 2024 to March 31, 2025)

(Percentages indicate year-on-year changes.)

		Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
			owners of parent	per share

		Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year		907,000		(4.9)	56,000	(44.6)	43,000	(50.8)	47,000	(29.0)	222.04
(Note) Revision to the financial results forecast announced most recently:	None
* Notes:
(1) Significant changes in the scope of consolidation during the period:	None
Newly included:	-	(Company name:							)
Excluded:	-	(Company name:							)

Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
Changes in accounting policies, changes in accounting estimates, and restatement
1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
2. Changes in accounting policies due to other reasons: None
3. Changes in accounting estimates: None
4. Restatement: None

(Note) For details, please refer to "2. Quarterly Consolidated Financial Statements and Primary Notes, (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 10 of the Appendix.

(4) Number of issued shares (common shares)

1) Total number of issued shares at the end of the period (including treasury shares):

December 31, 2024:	215,291,912	shares
March 31, 2024:	215,291,912	shares
2) Number of treasury shares at the end of the period:
December 31, 2024:	9,961,276	shares
March 31, 2024:	9,984,721	shares

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3) Average number of shares outstanding during the period:
Nine months ended December 31, 2024:	205,323,414	shares
Nine months ended December 31, 2023:	205,310,980	shares

(Note)The Company has introduced a performance-linked stock compensation plan, the "Stock Benefit Trust (BBT).The number of treasury stock at the end of the period includes the Company's shares (289,700 shares for the nine months ended December 31, 2025 and 319,700 shares for the year ended March 31, 2024) held by the trust account for the "Stock Benefit Trust (BBT)".

Number of shares of treasury stock held by the trust account The Company shares held by the Trust Account are included in treasury stock, which is deducted from the average number of shares outstanding during the period.(299,700 shares for the nine months ended December 31, 2025 and 321,433 shares for the nine months ended December 31, 2024)

Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes
Proper use of earnings forecasts, and other special matters

(Notes on forward-looking statements)

The forward-looking statements in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual results may differ significantly from these statements due to various factors.

Please refer to "Consolidated Earnings Forecast for FY2025" on page 4 and "Summary of Revisions to Consolidated Earnings Forecast for FY2025" on page 5 of the "Financial Results for the Third Quarter of FY2025 (April-December)" released on January 31, 2025, for information regarding the earnings forecast.

Dividends for preferred stock

The breakdown of dividend per preferred stock which differs in shareholders' rights from common stock is as follows.

			Cash dividends per share
Class B preferred stock
1st	2st		3st	Year-ended	Total

	quarter-end	quarter-end		quarter-end

	Yen	Yen		Yen	Yen	Yen
April 1, 2023 - March 31, 2024	－	4,560,164.00		－	1,500,000.00	6,060,164.00
April 1, 2024 - March 31, 2025	－	1,500,000.00		－

April 1, 2024 - March 31, 2025					1,500,000.00	3,000,000.00
(Forecast)

(Note) Changes of the forecasts of the cash dividends per share from the latest release: No

(Note) Dividend per share at the end of the second quarter of the fiscal year ending March 31, 2024 includes 3,060,164.00 yen of accumulated unpaid dividends for the fiscal year ended March 31, 2023.

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1. Summary of Business Results

Summary of Business Results for the Quarter under Review

Revenues in the Third quarter under review fell by ¥ 39,177 million to ¥ 646,403 million compared with the same period of the previous year, mainly due to a decrease in fuel cost adjustments following lower fuel prices, and ordinary revenues, including non- operating income, fell by ¥ 38,839 million to ¥ 649,014 million.

Ordinary income decreased by ¥ 16,988 million from the same period last year to ¥ 56,804 million, mainly due to the deterioration of income and expenses resulting from the elimination of a significant gain on the fuel cost adjustment system in the same period last year.

Net income attributable to shareholders of the parent company increased by ¥ 1,003 million from the same period of the previous year to ¥ 54,665 million, mainly due to the recording of a gain on sale of nuclear fuel as an extraordinary gain, despite a decrease in ordinary income.

(2) Summary of financial position for the quarter under review

Assets, liabilities and net assets

Assets increased by ¥ 49.106 billion from the end of the previous fiscal year to ¥ 2,190.798 billion. This was mainly due to an increase in fixed assets resulting from capital investment and an increase in cash and deposits, despite the implementation of the "Act for Partial Revision of the Electricity Business Act, etc. to Establish an Electricity Supply System for the Realization of a Carbon-Free Society," which abolished the "Ministerial Ordinance on Reserve for Decommissioning of Nuclear Power Facilities," and the revision of the Electricity Business Accounting Regulations, as well as the reversal of assets equivalent to asset retirement obligations and the progress of depreciation.

Liabilities decreased by ¥2,110 million to ¥1,806,052 million compared with the end of the previous financial year. This was mainly due to the reversal of asset retirement obligations and a decrease in interest-bearing liabilities, despite the recording of unpaid decommissioning contributions in line with the revision or abolition of laws and regulations similar to assets.

Net assets increased by ¥51,216 million from the end of the previous fiscal year to ¥384,745 million, mainly due to the recording of net income attributable to parent company shareholders for the quarter, despite the payment of dividends.

As a result, the shareholders' equity ratio as of December 31, 2024 was 16.9%, up 2.0% from the end of the previous fiscal year.

For a summary of business results, please refer to the "Financial Results for the Third Quarter of FY2025 (April-December)" announced on "TDnet" and our website (https://www.hepco.co.jp/) on January 31, 2025.

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2.Quarterly Consolidated Financial Statements (1)Quarterly Consolidated Balance Sheets

				(Millions of yen)
			As of March 31, 2024	As of December 31, 2024

Assets
Non-current assets	1,748,635	1,764,140

	Electric utility plant and equipment	1,138,647	1,109,064
		Hydroelectric power production facilities	200,373	201,192

		Thermal power production facilities	166,613	158,719
		Nuclear power production facilities	133,258	108,769

		Transmission facilities	177,740	181,641
		Transformation facilities	105,378	107,632

		Distribution facilities	300,871	301,625
		General facilities	43,138	38,965

		Other electric utility plant and equipment	11,272	10,517
	Other non-current assets	61,688	64,515

	Construction in progress	227,374	270,358
		Construction in progress	202,533	244,942

		Retirement in progress	401	977
		Special account related to reprocessing of	24,439	24,439
		spent nuclear fuel

	Nuclear fuel	163,258	163,863
		Nuclear fuel in processing	163,258	163,863

	Investments and other assets	157,665	156,337
		Long-term investments	86,460	89,262

		Retirement benefit asset	21,307	22,108
		Deferred tax assets	36,663	33,478

		Other	13,581	11,834
		Allowance for doubtful accounts	(346)	(346)

Current assets	393,056	426,657
	Cash and deposits	110,709	129,678

	Notes and accounts receivable - trade, and contract	97,639	117,052
	assets

	Inventories	67,989	76,860

	Other	118,389	104,797
	Allowance for doubtful accounts	(1,670)	(1,730)

Total	2,141,691	2,190,798

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				(Millions of yen)
			As of March 31, 2024	As of December 31, 2024

Liabilities and net assets
	Liabilities

	Non-current liabilities	1,358,231	1,381,543
		Bonds payable	678,500	738,400

		Long-term borrowings	514,891	501,986
		Contribution payable for nuclear reactor	-	92,409
		decommissioning

		Retirement benefit liability	34,602	34,389
		Asset retirement obligations	117,313	-

		Other	12,924	14,356
	Current liabilities	447,337	422,590

		Current portion of non-current liabilities	168,936	118,514
		Short-term borrowings	44,500	44,500

		Notes and accounts payable - trade	86,460	98,832
		Accrued taxes	26,685	35,252

		Other	120,754	125,490
	Reserves under special laws	2,594	1,919

		Reserve for water shortage	2,594	1,919
	Total liabilities	1,808,163	1,806,052

	Net assets
	Shareholders' equity	311,839	359,962

		Share capital	114,291	114,291
		Capital surplus	47,348	47,348

		Retained earnings	168,070	216,185
		Treasury shares	(17,870)	(17,862)

	Accumulated other comprehensive income	7,543	10,167
		Valuation difference on available-for-sale	7,235	8,819
		securities

		Deferred gains or losses on hedges	(1,499)	(479)
		Remeasurements of defined benefit plans	1,807	1,827

	Non-controlling interests	14,145	14,615
	Total net assets	333,528	384,745

	Total	2,141,691	2,190,798

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(2)Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

			(Millions of yen)
		For the nine months	For the nine months
		ended December 31, 2023	ended December 31, 2024

Operating revenue	685,581	646,403
	Electric utility operating revenue	655,378	611,350

	Other business operating revenue	30,202	35,052
Operating expenses	604,550	581,907

	Electric utility operating expenses	579,096	552,927
	Other business operating expenses	25,454	28,980

Operating profit	81,030	64,495
Non-operating income	2,272	2,611

	Dividend income	665	696
	Interest income	47	131

	Gain on sale of goods	435	570
	Other	1,124	1,212

Non-operating expenses	9,510	10,302
	Interest expenses	7,828	8,069

	Share of loss of entities accounted for using equity	102	178
	method

	Other	1,578	2,053

Total ordinary revenue	687,853	649,014
Total ordinary expenses	614,060	592,209

Ordinary profit	73,793	56,804
Provision or reversal of reserve for water shortage	396	(674)

	Provision of reserve for water shortage	396	-
	Reversal of reserve for water shortage	-	(674)

Extraordinary income	702	19,549
	Gain on sale of nuclear fuel	702	19,549

Profit before income taxes	74,099	77,028
Income taxes - current	11,003	19,469

Income taxes - deferred	9,211	2,194
Total income taxes	20,214	21,663

Profit	53,884	55,364
Profit attributable to non-controlling interests	223	699

Profit attributable to owners of parent	53,661	54,665

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Quarterly Consolidated Statements of Comprehensive Income (For the nine months)

			(Millions of yen)
		For the nine months	For the nine months
		ended December 31, 2023	ended December 31, 2024

Profit	53,884	55,364
Other comprehensive income

	Valuation difference on available-for-sale securities	2,367	1,646
	Deferred gains or losses on hedges	773	950

	Remeasurements of defined benefit plans, net of tax	1,005	(27)
	Share of other comprehensive income of entities	(30)	69
	accounted for using equity method

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

4,115	2,638
58,000	58,003



57,702	57,289

297	714

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(3) Notes to Quarterly Consolidated Financial Statements

(Changes in Accounting Policies)

(Application of "Accounting Standard for Corporate, Inhabitant and Enterprise Taxes", etc.)

"The Company has adopted the" "Accounting Standard for Corporation Tax, Inhabitants Tax and Enterprise Tax" "(ASBJ Statement No. 27, October 28, 2022; hereinafter referred to as the" "2022 Revised Accounting Standard" ") from the beginning of the first quarter of the current fiscal year."

In the past, the amount calculated in accordance with laws and regulations for corporate tax, residential tax, enterprise tax, etc. (hereinafter referred to as "corporate tax, etc.") on income, etc. was recorded in profit or loss. From the beginning of the fiscal year, income taxes on income are recorded by classifying them into profit or loss, shareholders' equity, and other comprehensive income, depending on the transactions, etc. that are the source of the income taxes. For income taxes recorded in accumulated other comprehensive income, the corresponding tax amount is recorded in profit or loss when the transactions, etc. that cause the income taxes to be imposed are recorded in profit or loss. If taxable transactions, etc. are related to shareholders' equity or other comprehensive income in addition to profit and loss, and it is difficult to calculate the amount of corporation tax, etc. imposed on shareholders' equity or other comprehensive income, the amount of tax is recorded in profit and loss.

The amendments to the classification of income taxes (taxation on other comprehensive income) are in accordance with the transitional treatment set forth in the proviso to Paragraph 20-3 of the Revised Accounting Standards of 2022 and the transitional treatment set forth in the proviso to Paragraph 65-2 (2) of the Guidance on Accounting Standard for Tax Effect Accounting (Accounting Standards Board of Japan (ASBJ) Guidance No. 28, October 28, 2022, hereinafter referred to as the "2022 Revised Guidance"). This change in accounting policy has no impact on the interim consolidated financial statements.

In addition, the Company has applied the revised 2022 Implementation Guidance from the beginning of the first quarter of the current fiscal year to the revision related to the review of the treatment in the consolidated financial statements in the case of tax deferral of gains and losses arising from the sale of shares of subsidiaries between consolidated companies. This change in accounting policy has been retrospectively applied to the quarterly consolidated financial statements and consolidated financial statements for the previous fiscal year. This change in accounting policy had no effect on the quarterly consolidated financial statements for the quarter of the previous fiscal year and the consolidated financial statements for the previous fiscal year.

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