Overview of the FY2026 HEPCO Group Management Plan

• ‌Introduction

  We, the HEPCO Group, would like to express our sincere gratitude for your continued support of our business.

  Hokkaido, the base of our operations, is facing issues such as a declining population and a shortage of workers due to the falling birthrate and aging population. However, plans are underway to establish digital industry facilities such as next-generation semiconductor plants and large-scale data centers. As a result, electricity demand, which had been on a downward trend due to progress in energy conservation, has bottomed out and is expected to increase and expand over the medium to long term.

  Amid this context, the HEPCO Group announced the HEPCO Group Management Vision 2035 in March 2025, which sets out a strategic direction for the next 10 years. The vision outlines how we aim to capture new business opportunities by reliably responding to increased electricity demand and co-creating businesses that contribute to solving social issues, with the aim of growing strongly together with Hokkaido.

  The new vision outlines a pathway for solving future social issues and achieving business growth, utilizing Hokkaido's potential and the contributions of the HEPCO Group. The vision contains the three management Agenda of "Realization of GX for Hokkaido's Growth," "Challenge of Creating New Value," and "Robust Business Foundation for Sustainable Growth." The HEPCO Group will continue to actively transform our business and take up these challenges to both grow our business and develop Hokkaido.

  FY2026 is a vital year as we begin our journey toward the realization of the HEPCO Group Management Vision 2035. By steadily implementing the initiatives outlined in the management plan, we aim to sustainably improve corporate value by optimizing our business portfolio and enhancing capital efficiency in all our businesses.

  We hope for your continued understanding and support for our business.

  April 2025

  Hokkaido Electric Power Co., Inc. 1

  
  
  
• Contents

  Introduction ・・・ 1

  1. Management Agenda and Targets of Our New Vision ・・・ 3

  2. Main Initiatives for FY2026

     1. Realization of GX for Hokkaido's Growth		・・・ 9
     2. Challenge of Creating New Value		・・・21
     3. Robust Business Foundation for Sustainable	Growth	・・・27
     List of Group Companies		・・・35

     
     
     
• ‌I. Management Agenda and Targets of Our New Vision

• Management Agenda and Targets of Our New Vision

  HEPCO Group Management Agenda toward 2035

  • In the HEPCO Group Management Vision 2035 we announced in March 2025, we established the following management agenda: "Realization of GX for Hokkaido's Growth," and "Challenge of Creating New Value," and to underpin the above, "Robust Business Foundation for Sustainable Growth." We set these agenda based on the recognition that the HEPCO Group has the capability to contribute to Hokkaido's development. We will implement initiatives outlined in these management themes to grow the business of the HEPCO Group and develop Hokkaido.

※ *GX (Green Transformation): An initiative that aims to transform the entire economic and social system by viewing the shift toward carbon neutrality as a growth opportunity and enhancing international industrial competitiveness.

HEPCO Group Management Agenda toward 2035

We will bolster our business foundation so that we may move forward to transform our

operations and take up challenges, including those listed above.

To contribute to the promotion of industry in Hokkaido and resolution of regional issues, we will also take up the challenge of developing non-energy businesses while maintaining our focus on the energy business.

To contribute to digital industries clustering in Hokkaido, we will steadily improve the power infrastructure in anticipation of greater demand as well as buildout of renewable energies, and take up the challenge to decarbonize energy.