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Year ended March 31, 2025

Chubu Electric Power Company, Incorporated

CONSOLIDATED BALANCE SHEETS

Chubu Electric Power Company, Incorporated and Subsidiaries As of March 31, 2025 and 2024

Thousands of

U.S. dollars

Nuclear Fuel：

Investments and Other Assets：

Current Assets：

Total Assets (Notes 13 and 30) ¥7,124,812 ¥7,108,617 $47,648,047 The accompanying notes to the consolidated financial statements are an integral part of these statements.

Millions of yen

Thousands of

U.S. dollars (Note 1)

LIABILITIES AND NET ASSETS

March 31, 2025 March 31, 2024 March 31, 2025

Noncurrent Liabilities：

Current Liabilities:

Commitments and Contingent Liabilities (Note 19) Net Assets (Note 20)

Total Liabilities and Net Assets ¥7,124,812 ¥7,108,617 $47,648,047

CONSOLIDATED STATEMENTS OF INCOME

Chubu Electric Power Company, Incorporated and Subsidiaries For the Years Ended March 31, 2025 and 2024

Millions of yen

Thousands of U.S. dollars

(Note 1)

                                                                     March 31, 2025  March 31, 2024 March 31, 2025

Operating Revenues：

Electric utility operating revenue ¥3,108,560 ¥2,961,364 $20,788,875

Other business operating revenue 560,673 649,050 3,749,573

Total Operating Revenues (Notes 23, 29 and 30) 3,669,234 3,610,414 24,538,449

The accompanying notes to the consolidated financial statements are an integral part of these statements.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Chubu Electric Power Company, Incorporated and Subsidiaries For the Years Ended March 31, 2025 and 2024

Millions of yen

Thousands of

U.S. dollars (Note 1)

March 31, 2025 March 31, 2024 March 31, 2025

CONSOLIDATED STATEMENTS OF CHANGES IN

Chubu Electric Power Company, Incorporated and Subs For the Years Ended March 31, 2025 and 2024

Millions of yen

Millions of yen

Thousands of U.S. dollars (Note 1)

The accompanying notes to the consolidated financial statements are an integral part of these statements.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Chubu Electric Power Company, Incorporated and Subsidiaries For the Years Ended March 31, 2025 and 2024

Millions of yen

Thousands of

U.S. dollars (Note 1)

March 31, 2025 March 31, 2024 March 31, 2025

1. Basis of Consolidated Financial Statements

   1. Basis of presenting the consolidated financial statements

      The consolidated financial statements of Chubu Electric Power Co., Inc. (the “Company”) and its subsidiaries (together with the Company, the “Chubu Electric Group”) have been prepared as required by the provisions set forth in the Japanese Corporate Law, the Financial Instruments and Exchange Law of Japan, the accounting regulations applicable to the electric power industry and on the basis of accounting principles generally accepted in Japan, which are different in certain respects as to application and disclosure requirements from International Financial Reporting Standards (“IFRS”).

      These consolidated financial statements are compiled from the original consolidated financial statements in Japanese prepared by the Company as required by the Financial Instruments and Exchange Law of Japan and submitted to the Director of Kanto Finance Bureau in Japan.

      Monetary amounts less than one million yen or one thousand dollars are rounded down. As a result, total amounts shown in the accompanying consolidated financial statements (in both yen and U.S. dollars) do not necessarily agree with the sum of individual amounts.

   2. U.S. dollar amounts

      The Company maintains its accounting records in Japanese yen. The U.S. dollar amounts included in the consolidated financial statements and these accompanying notes present the arithmetic results of translating yen amounts into U.S. dollar amounts on a basis of ¥149.53 to U.S. $1.00, the prevailing exchange rate at the consolidated fiscal year-end. The inclusion of the dollar amounts is solely for convenience of the reader and is not intended to imply that the assets and liabilities originating in Japanese yen have been or could readily be converted, realized or settled in U.S. dollars at the above rate or at any other rate.

   3. Reclassification

      Certain comparative figures have been reclassified to conform to the current year’s presentation.

2. Summary of Significant Accounting Policies

   1. Basis of consolidation

      The consolidated financial statements include the accounts of the Company and all of its subsidiaries. Investments in all affiliates are accounted for by the equity method. The difference between the acquisition cost of investments in subsidiaries and affiliates and the underlying equity in their net assets adjusted based on the fair value at the time of acquisition are principally deferred and amortized over certain periods that are within twenty years on a straight-line basis. All significant intercompany transactions and accounts are eliminated on consolidation.

      The number of subsidiaries and affiliates at March 31, 2025 and 2024 was as follows:

      	March 31, 2025	March 31, 2024
      Subsidiaries: Domestic	61	60
      Overseas	14	13
      Affiliates	87	79

      Certain domestic and overseas subsidiaries and affiliates close their books at December 31, three months earlier than the Company. The Company uses the financial statements of these subsidiaries and affiliates as of their fiscal year-end for its consolidation or application of the equity method. Significant transactions for the period between the December 31 year-end of the subsidiaries and affiliates and the March 31 year-end of the Company are adjusted for on consolidation or with the application of the equity method.

      The consolidated subsidiaries whose closing date differs from the Company's consolidated closing date are Chubu Electric Power Company Netherlands B.V. and 12 other companies. ES-CON JAPAN (THAILAND) CO., Ltd. has a closing date of February 28. The other companies have a closing date of December 31.

      In preparing the consolidated financial statements, provisional financial statements prepared as of the consolidated closing date are used for the consolidated subsidiaries of which closing dates differ from the Company’s consolidated closing date. Significant transactions for the period between the subsidiaries’ year-end and the Company’s year-end are adjusted for on consolidation.

      The financial statements of significant overseas subsidiaries and affiliates that are prepared in accordance with either IFRS or U.S. generally accepted accounting principles are adjusted for the specified five items as required by “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements” and “Practical Solution on Unification of Accounting Policies Applied to Affiliates Accounted for by the Equity Method” issued by the Accounting Standards Board of Japan (“ASBJ”).

   2. Property, plant and equipment and depreciation

      Property, plant and equipment are stated at cost. Depreciation of property, plant and equipment is computed mainly by the straight-line method over the estimated useful life of the asset. Contributions in aid of construction are deducted from the depreciable costs of the assets. The useful life of the assets are estimated mainly in accordance with the provisions in the Corporation Tax Law of Japan.

   3. Nuclear fuel and amortization

      Nuclear fuel is stated at cost, less amortization. The amortization of loaded nuclear fuel is computed based on the quantity of energy produced for the generation of electricity in accordance with the provisions prescribed by the regulatory authorities.

   4. Investments and marketable securities

      The Chubu Electric Group classifies certain investments in debt and equity securities as “trading,” “held-to-maturity” or “available-for-sale,” the classification of which determines the respective accounting methods to be used to account for the investments as stipulated by the accounting standard for financial instruments. The Chubu

      Electric Group had no trading securities in the consolidated fiscal years under review. Held-to-maturity securities are stated at amortized cost. Investments in securities other than equity securities without market prices are stated at fair value, and net unrealized gains and losses on these securities are reported as accumulated other comprehensive income, net of applicable income taxes. Equity securities without market prices are carried at cost determined by the moving average method. Adjustments in the carrying values of individual securities are charged to loss through write-downs when a decline in fair value is deemed other than temporary. The cost of securities is computed by the moving average method.

   5. Derivatives and hedge accounting

      Derivatives are valued at fair value if hedge accounting is not appropriate or when there is no hedging designation, and the gains and losses on the derivatives are recognized in current earnings. Certain transactions classified as hedging transactions are accounted for under a deferral method by which unrealized gains and losses on the hedging instruments are carried as accumulated other comprehensive income on the balance sheet and the net changes are recognized as other comprehensive income on the consolidated statements of comprehensive income until the losses and gains on the hedged items are realized. Foreign exchange forward contracts are accounted for by translating foreign currency denominated assets and liabilities at contract rates as an interim measure if certain hedging criteria are met. According to the special treatment permitted by the accounting standard for financial instruments in Japan, interest rate swaps are not valued at fair value. Rather, the net amount received or paid is added to or deducted from the interest expense on the hedged items if certain conditions are met. The Chubu Electric Group enters into derivative transactions to manage the risks of loss arising from fluctuations in electricity procurement costs.

   6. Inventories

      Inventories of real estate for sale are stated at cost determined by the specific identification method. Consolidated balance sheet amounts are calculated by writing down the book value of assets which decreased in profitability.

   7. Allowance for doubtful accounts

      An allowance for doubtful accounts has been provided for at the aggregate amount of estimated credit loss for doubtful or troubled receivables based on a financial review of certain individual accounts and a general reserve for other receivables based on the historical loss experience for a certain past period.

   8. Provision for loss in conjunction with discontinued operations of nuclear power plants

      In the years ended March 31, 2025 and 2024, a provision was made based on a reasonable estimate of possible future expenses and losses related to the decommissioning of electric generating facilities that followed the termination of operations at Hamaoka Reactors No. 1 and No. 2.

   9. Reserve for water shortage

      In order to prepare for losses due to drought, Chubu Electric Power Miraiz Co., Inc., (hereinafter referred to as “Chubu Electric Power Miraiz”) has recognized the maximum amount of allowance specified in Article 36 of the

      Electricity Business Act (No. 170, 1964) before revision, to which Article 1 of the Act for Amending Part of the Electricity Business Act (No. 72, 2014) is applied, as effective by replacing the terms of Paragraph 3, Article 16 of the Supplementary Provisions of the Act.

   10. Employee retirement benefits

       To cover the payment of retirement benefits to employees, the difference between the amount of retirement benefit obligations and the value of plan assets is recognized as a liability for retirement benefits if the amount of obligations exceeds the value of the plan assets and as an asset for retirement benefits if the value of plan assets exceeds the amount of retirement benefit obligations.

       1. Method of allocation of estimated retirement benefits

          To calculate retirement benefit obligations, the benefit formula basis is used to allocate estimated retirement benefits to periods of service.

       2. Actuarial gains and losses and prior service cost amortized in expenses

       Prior service cost is amortized using the straight-line method over certain periods (5 to 10 years for subsidiaries), which are shorter than the estimated average remaining service years of the employees, as of the year in which such cost arises. Actuarial gains and losses are amortized using the straight-line method over certain periods (3 years for the Company and 3 to 5 years for subsidiaries) which are shorter than the estimated average remaining service years of the employees as of the year after such gains and losses arise.

   11. Basis for Recognition of Significant Revenues and Expenses

       The main businesses of our group are the electricity retail business and general transmission and distribution business. In the electricity retail business, we have performance obligations to deliver electricity based on sales contracts with customers. In the general transmission and distribution business, we have performance obligations to provide a consignment supply based on consignment supply provisions. Revenues to satisfy these performance obligations are recorded based on the amount of electricity determined by meter reading.

   12. Cash and cash equivalents

       The Company considers all highly liquid short-term investments purchased with an original maturity of three months or less to be cash equivalents.

   13. Research and development costs

       Research and development costs included in operating expenses for the years ended March 31, 2025 and 2024 amounted to ¥9,341 million ($62,475 thousand) and ¥9,527 million, respectively.

   14. Income taxes

       Income taxes are accounted for by the asset-liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to the differences between the carrying amounts of existing assets and

       liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using the enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the promulgation date of the relevant law.

   15. Translation of foreign currency accounts

       Receivables, payables and securities, other than stocks of subsidiaries and certain other securities, are translated into Japanese yen at the prevailing exchange rate at the consolidated fiscal year-end. Transactions in foreign currencies are translated based on the prevailing exchange rate on the transaction date. Resulting foreign exchange translation gains and losses are included in the consolidated statements of income.

       For financial statement items of the overseas subsidiaries and affiliates, all asset and liability accounts are translated into Japanese yen by applying the exchange rate in effect at the respective consolidated fiscal year-end. All income and expense accounts are translated at the average rate of exchange prevailing during the year. Translation differences are reported in the consolidated balance sheets as foreign currency translation adjustments in accumulated other comprehensive income after allocating the portion attributable to noncontrolling interests, and the net change is recognized as other comprehensive income on the consolidated statement of comprehensive income.

   16. Per share information

       Basic net income per share is computed by dividing income available to common shareholders by the weighted average number of shares outstanding during the year. The Company and the Company’s wholly-owned subsidiary, Chubu Electric Power Miraiz, have introduced a Performance-Linked Stock Remuneration Plan (BBT: Board Benefit Trust, hereinafter referred to as the “Plan”). In calculating net income per share, our shares (for the previous consolidated fiscal year: 386,800 shares, for the current consolidated fiscal year: 1,248,100 shares) held by the trust account for the “Plan” are included in treasury shares, which are deducted in calculating “Weighted average number of common shares.” Cash dividends per share shown for each consolidated fiscal year in the consolidated statements of income represent dividends declared as applicable to the respective year.

3. Significant Accounting Estimates

   Valuation of noncurrent assets in the nuclear power business

   1. Monetary amounts recognized in the consolidated financial statements at the end of the consolidated fiscal year.

      1. Amount recorded in the consolidated financial statements at the end of the current consolidated fiscal year

         The nuclear power production facilities, including construction in progress, were recognized on the consolidated balance sheets at ¥294,159 million ($1,967,230 thousand) and accounted for about 4% of total assets at the end of the current consolidated fiscal year and ¥342,335 million and for about 5% of total assets at the end of the previous consolidated fiscal year. Impairment was not recognized in the consolidated fiscal year because the total amount of future cash flows exceeded the book value of noncurrent assets in the nuclear power business.

      2. Information on the nature of significant accounting estimates

         In the nuclear power business, it is necessary to compare future cash flows with the book value of noncurrent assets to determine the necessity of recognizing impairment loss because of the long-term continuation of the shutdown status. Estimates of future cash flows are based on management plans made by the executives.

         Key assumptions involving the executives' judgments, such as sales revenues after restart and anticipated costs of safety improvement measures, are used in the management plans underlying the estimates, which have a significant impact on the estimates of future cash flows.

   2. Recoverability of deferred tax assets

      1. Amount recorded in the consolidated financial statements at the end of the current consolidated fiscal year

         The Company and some of its domestic consolidated subsidiaries that have adopted the group tax sharing system (hereinafter referred to as the “tax sharing group”) have determined the recoverability of and recognized deferred tax assets as follows:

         Thousands of

           Millions of yen     U.S. dollars    

         March 31, 2025

         Consolidated Balance Sheet Amount:

         Deferred tax assets ¥ 148,218 $ 991,227 Amounts recorded in the tax sharing group

         Deferred tax assets

         (before offsetting deferred tax liabilities)

         ¥ 179,931 $ 1,203,314

         Millions of yen March 31, 2024

         Consolidated Balance Sheet Amount:

         Deferred tax assets ¥ 153,725

         Amounts recorded in the tax sharing group

         Deferred tax assets

         (before offsetting deferred tax liabilities)

         149,811

      2. Information on the nature of significant accounting estimates

         Deferred tax assets are recognized to the extent that deductible temporary differences are expected to reduce the tax burden in the future. Recoverability of deferred tax assets is determined based on the appropriateness of company classification in the tax sharing group and estimates of future taxable income before temporary differences.

         The estimation of future taxable income before temporary differences is based on the plan prepared by management. The management plan on which the estimates are based uses major assumptions that involve management's judgment, such as forecasts of electricity sales and assumptions of power supply procurement plans, including procurement from the wholesale electricity market, which have a significant impact on the recoverability of deferred tax assets.

4. Additional Information

   1. Stock Remuneration Plan

      The Company adopted a Stock Remuneration Plan at the 95th General Shareholders’ Meeting held on June 26 2019, and the Company resolved to include additional eligible persons to the Plan at the Board of Directors meeting held on May 8 2020.

      In addition, at the 97th General Shareholders’ Meeting held on June 25 2021, the maximum number of shares to be issued under this system, and at the 98th General Shareholders’ Meeting held on June 28 2022, the revision of the trust amount and the maximum number of shares to be issued, and at the 100th General Shareholders’ Meeting held on June 26 2024, the addition of eligible persons under this system and the setting of the trust amount and the maximum number of shares to be issued were resolved, respectively.

      1. Outline of the Plan

         The Plan is a stock remuneration plan whereby shares in the Company will be acquired through a trust funded with cash contributed by the Company (hereinafter, the trust established pursuant to the Plan is referred to as the “Trust”), and the Company’s shares and an amount of cash equal to the market price of the Company’s shares (hereinafter referred to as the “Company’s shares, etc.”) are provided through the Trust to our directors, executive officers who do not concurrently serve as directors, and executive officer status, as well as the directors, executive officers who do not concurrently serve as directors, and executive officer status of Chubu Electric Power Miraiz Co., Ltd. (hereinafter referred to as “Chubu Electric Power Miraiz”) (hereinafter collectively referred to as “Directors, etc.”) pursuant to the Directors Stock Remuneration Regulation established by the Company and Chubu Electric Power Miraiz. Each Directors, etc. will receive the Company’s shares, etc. after the retirement of such Directors, Etc., in principle.

      2. The Company’s shares that remain in Trust

      The Company’s shares that remain in the Trust are recorded in equity as treasury stock at the book value of the Trust (excluding any amount equivalent to expenses attributable). The book value of such treasury stock was

      ¥2,030 million ($13,582 thousand) and the number of shares was 1,248 thousand shares at the end of this consolidated fiscal year.

5. Standards and Guidance Not Yet Adopted

   The following standards and guidance were issued but not yet adopted.

   • Accounting Standard for Leases (ASBJ Statement No. 34, September 13, 2024)

   • Guidance on Accounting Standard for Leases (ASBJ Guidance No. 33, September 13, 2024)

   In addition, this includes revisions to related corporate accounting standards, corporate accounting standard application guidelines, practical response reports, and transfer guidelines.

   1. Overview

      Similar to international accounting standards, it stipulates the treatment of recording assets and liabilities for all leases of the lessee.

   2. Effective date

      The standards and guidance shall be effective from the beginning of the consolidated fiscal year ending March 31, 2028.

   3. Effects of the application of the standards

      The Company and its consolidated domestic subsidiaries are in the process of determining the effects of these new standards on the consolidated financial statements.

6. Cash and Cash Equivalents

   For the consolidated statements of cash flows, reconciliation between cash and cash equivalents and cash balances on the consolidated balance sheets were as follows:

   Thousands of

              Millions of yen                  U.S. dollars    

   March 31, 2025 March 31,2024 March 31, 2025

   Cash and deposits	¥	293,547	¥	390,806	$ 1,963,136
   Time deposits with an original maturity of more than three months included in cash and deposits Short-term investments		(1,080) 4,703		(2,287) 33,751	(7,226) 31,457
   Short-term investments with an original maturity		(4,703)		(3,751)	(31,457)
   of over three months
   Cash and cash equivalents	¥ 292,467		¥ 418,518		$ 1,955,910

7. Noncurrent assets

   The major classifications of noncurrent assets at March 31, 2025 and 2024 were as follows:

                Millions of yen                March 31, 2025 March 31,

   Thousands of

      U.S. dollars    March 31, 2025

            2024               

   Hydroelectric power production facilities	¥	283,139		¥	283,271		$ 1,893,531
   Nuclear power production facilities		85,208			130,024		569,843
   Transmission facilities		551,361			558,015		3,687,298
   Transformation facilities		427,678			435,289		2,860,154
   Distribution facilities		830,094			801,676		5,551,360
   General facilities		162,876			155,508		1,089,255
   Other electric utility plant and equipment		22,951			23,091		153,487
   Other noncurrent assets		401,726			487,425		2,686,594
   Construction in progress		521,028			464,394		3,484,443
   Total	¥	3,286,067		¥	3,338,697		$ 21,975,971

   Calculated according to the accounting principles and practices generally accepted in Japan, accumulated gains on the receipt of contributions in aid of real property construction deducted from the original acquisition costs amounted to ¥225,329 million ($1,506,920 thousand) and ¥222,229 million at March 31, 2025 and 2024, respectively.

8. Financial Instruments

   1. Items related to financial instruments
      1. Policy initiatives for financial instruments

         The Chubu Electric Group raises funds for the equipment necessary to run its core electric power business through corporate bond issues, bank loans and other means. Short-term working capital is secured principally through short-term corporate bonds, and fund management is restricted to low-risk assets such as certificates of deposit. Derivative transactions are used to manage risk arising from the Chubu Electric Group's operations and are not used for speculative purposes.

      2. Breakdown of financial instruments and associated risks

         Marketable securities include certificate of deposit, shares of companies contributing to business operations or regional development, shares acquired through strategic investments aimed at business growth and development, and bond holdings of subsidiaries and other instruments estimated to raise the Chubu Electric Group’s corporate value from a mid- and long-term viewpoint. These securities, bonds, etc., are exposed to risks arising from changes in market prices.

         Accounts receivable are exposed to customer credit risks.

         Most of the Chubu Electric Group's interest-bearing debt balance consists of corporate bonds and long-term funds holdings from long-term borrowings. However, operational results may be minimally affected because most funds are raised at fixed interest rates.

         Accounts payable - trade for operating debts are almost all due within 1 year.

         With respect to derivative transactions, the Company enters into foreign exchange forward contracts and other similar transactions targeting foreign currency-denominated liabilities arising from fuel procurement in order to hedge against losses resulting from foreign exchange rate fluctuations associated with such liabilities. Hedging methods and hedging objectives in hedge accounting, hedging policies, effective valuation methods for hedges and other related items are described in Note 2(e), “Summary of Significant Accounting Policies - Derivatives and hedge accounting.”

      3. Risk management system for financial instruments

         1. Credit risk management

            Most accounts receivable arise from electricity bills, and due dates and account balances are managed for each customer. For derivative transactions, financial institutions and other enterprises with high credit ratings are selected and credit standing is assessed even after transaction contracts are completed.

         2. Market risk management

            For marketable securities, the fair value of the securities and the financial and operating conditions of the issuers are regularly assessed. Derivative transactions are enacted and managed based on the Company's internal rules established for authorizing trades, managing and reporting. A trade management department independently handles transactions and approves contract amounts (notional and other value) for each transaction by classification.

         3. Volatility risk management in financing

         Financing plans are formulated and daily receipts and payments are validated for managing risk.

      4. Supplementary explanation of fair value for financial instruments

         The fair value of financial instruments is based on market prices or reasonable alternative assessments if there is no market price. Since some variable factors are used in assessing value, the amounts calculated can change based on different assumptions that are applied. Derivative contract amounts noted below in “(b) Fair value of financial instruments” do not denote the market risk from the derivatives themselves. In addition, fair value and valuation gains and losses are reasonably quoted amounts based on market indicators for valuations and other measures. They are not necessarily amounts that would be received or paid in the future.

   2. Fair value of financial instruments

      Differences between the valuation amounts of financial instruments as they appear on the consolidated balance sheets and their fair values as of March 31, 2025 and 2024 are shown below. Notes are omitted for cash. Notes are also omitted for deposits, notes receivable, accounts receivable, short-term borrowings, notes payable, and accounts payable - trade as these items are settled in a short period of time and their fair value approximates their book value.

      Carrying value Fair value Difference

      As of March 31, 2025 Millions of yen

      Assets:
      (1) Marketable securities *1	¥	89,286	¥	68,311	¥	(20,975)
      Liabilities:
      (2) Bonds payable *3	¥	796,039	¥	737,240	¥	(58,798)
      (3) Long-term borrowings *3		2,010,104		1,952,711		(57,393)
      (4) Derivative transactions *4		5,591		5,591		-

      As of March 31, 2025 Thousands of U.S. dollars

      Assets:
      (1) Marketable securities *1	$ 597,116	$ 456,838	$ (140,278)
      Liabilities:
      (2) Bonds payable *3	$ 5,323,607	$ 4,930,385	$ (393,221)
      (3) Long-term borrowings *3	13,442,816	13,058,992	(383,824)
      (4) Derivative transactions *4	37,392	37,392	-

      (*1) Equity securities without market prices are not included in “(1) Marketable securities.” The carrying amounts of such financial instruments in the consolidated balance sheets were as follows:

      Millions of yen

      Thousands of

      U.S. dollars

      March 31, 2025

      Unlisted stocks ¥ 1,956,365 $ 13,083,433

      (*2) Investments in partnerships (¥188,872 million ($1,263,110 thousand) on the consolidated balance sheet) are not subject to fair value disclosure in accordance with Paragraph 24-16 of the Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31, June 17, 2021).

      (*3) (2) Corporate bonds and (3) Long-term borrowings include scheduled redemptions within one year. (*4) Net receivables and payables arising from derivative transactions.

      Carrying value Fair value Difference

      As of March 31, 2024                                                      Millions of yen                  

      Assets:
      (1) Marketable securities *1	¥	79,179	¥	75,238	¥	(3,940)
      Liabilities:
      (2) Bonds payable *3	¥	888,053	¥	858,475	¥	(29,577)
      (3) Long-term borrowings *3		1,857,415		1,851,664		(5,750)
      (4) Derivative transactions *4		5,982		5,982		-

      (*1) Equity securities without market prices are not included in “(1) Marketable securities.” The carrying amounts of such financial instruments in the consolidated balance sheets were as follows:

      Millions of yen March 31, 2024

      Unlisted stocks ¥ 1,839,587

      (*2) Investments in partnerships (¥134,922 million on the consolidated balance sheet) are not subject to fair value disclosure in accordance with Paragraph 24-16 of the Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31, June 17, 2021).

      (*3) (2) Corporate bonds and (3) Long-term borrowings include scheduled redemptions within one year. (*4) Net receivables and payables arising from derivative transactions.

      (Note 1) Anticipated redemption schedule for monetary instruments and securities with maturity dates subsequent to the consolidated fiscal year-end.

      Within

           1 year    

      Over 1 year through

           5 years    

      Over 5 years through

           10 years    

      Over

         10 years    

      As of March 31, 2025 Millions of yen

      Securities:

      Held-to-maturity bonds:

      National and local government bonds, etc.	¥	- ¥	-	¥	- ¥	-
      Corporate bonds		-	-		-	-
      Other		-	400		-	-

      Available-for-sale securities with maturity dates: Bonds:

      National and local government bonds, etc.	- -					-			-
      Bonds payable	- 209					-			-
      Other Other: Cash and deposits		- -293,547			- - -			- - -			- - -
      Notes receivable		1,533			-			-			-
      Accounts receivable		295,390			1,976			31			-
      Total	¥	590,471		¥	2,585		¥	31		¥	-

      As of March 31, 2024 Millions of yen

      Securities:

      Held-to-maturity bonds:

      National and local government bonds, etc. Corporate bonds	¥	- -	¥	- -	¥	- ¥ -	- -
      Other		200		400		-	-

      Available-for-sale securities with maturity dates:

      Bonds:

      National and local government bonds, etc.	-		- -						-
      Bonds payable	-		- 218						-
      Other		-			-			-			-
      Other:		30,000			-			-			-
      Cash and deposits		390,806			-			-			-
      Notes receivable		8,759			-			-			-
      Accounts receivable		313,146			1,490			133			-
      Total	¥	742,911		¥	1,891		¥	351		¥	-

      As of March 31, 2025 Thousands of U.S. dollars

      Securities:

      Held-to-maturity bonds:

      National and local government bonds, etc. Bonds payable	$ - $ - - -	$ - $ - - -
      Other	- 2,678	- -

      National and local government bonds, etc.	-	-	-	-
      Bonds payable	-	1,398	-	-
      Other	-	-	-	-
      Other:	-	-	-	-
      Cash and deposits	1,963,136	-	-	-
      Notes receivable	10,255	-	-	-
      Accounts receivable	1,975,458	13,216	208	-

      Available-for-sale securities with maturity dates: Bonds:

      Total $ 3,948,851 $ 17,293 $ 208 $ -

      (Note 2) Anticipated redemption schedule for corporate bonds and long-term borrowings subsequent to the consolidated fiscal year-end

      Within 1 year

      Over 1 year through

      1. years

         Over 2 years through

      2. years

         Over 3 years through

      3. years

         Over 4 years through

      4. years

      Over 5 years

      As of March 31, 2025 Millions of yen

      Corporate bonds	¥	120,014	¥	70,014	¥	60,014	¥	19,274	¥	77,414	¥	449,309
      Long-term borrowings		190,516		188,292		236,101		229,017		206,102		960,073
      Short-term borrowings		261,556		-		-		-		-		-
      Total	¥	572,087	¥	258,306	¥	296,115	¥	248,291	¥	283,516	¥	1,409,382

      As of March 31, 2024 Millions of yen

      Corporate bonds	¥	160,014	¥	120,014	¥	70,014	¥	60,014	¥	27,674	¥	450,323
      Long-term borrowings		106,831		169,401		179,120		210,913		219,508		971,639
      Short-term borrowings		319,534		-		-		-		-		-
      Total	¥	586,379	¥	289,415	¥	249,134	¥	270,927	¥	247,182	¥	1,421,962

      As of March 31, 2025 Thousands of U.S. dollars

      Corporate bonds	$ 802,608	$ 468,227	$ 401,350	$ 128,897	$ 517,715	$ 3,004,808
      Long-term borrowings	1,274,104	1,259,229	1,578,958	1,531,583	1,378,336	6,420,604
      Short-term borrowings	1,749,188	-	-	-	-	-
      Total	$ 3,825,901	$ 1,727,456	$ 1,980,308	$ 1,660,480	$ 1,896,051	$ 9,425,413

   3. Fair value information for financial instruments by level of inputs

      Based on the observability and the significance of the inputs used to determine fair values, fair value information of financial instruments is presented by categorizing measurements into the following three levels:

      Level 1 fair value: Fair value calculated based on (unadjusted) quoted prices in active markets for identical assets or liabilities

      Level 2 fair value: Fair value calculated using directly or indirectly observable inputs other than Level 1 inputs Level 3 fair value: Fair value calculated using inputs that are not materially observable

      When multiple inputs of different categories are used in measuring fair value, the Company and its subsidiaries classify fair values into the category to which the lowest priority is assigned.

      1. Financial instruments carried on the consolidated balance sheet at fair value

         Level 1 Level 2 Level 3 Total

         March 31, 2025 Millions of yen

         Marketable securities: Available-for-sale securities:

         Stocks	¥	17,671	¥		-	¥		- ¥	17,671
         Bonds		-			209			-	209
         Derivative transactions:
         Exchange related		-			5,433			-	5,433
         Interest rate related		-			202			-	202
         Commodity related		-			41			-	41
         Total assets	¥	17,671		¥	5,886		¥	- ¥	23,557
         Derivative transactions:
         Exchange related		-			(5)			-	(5)
         Interest rate related		-			(75)			-	(75)
         Commodity related		-			(5)			-	(5)
         Total liabilities	¥	- ¥			(85)		¥	- ¥	(85)

         March 31, 2024 Millions of yen

         Marketable securities: Available-for-sale securities:

         Stocks	¥	34,788	¥		-	¥		- ¥	34,788
         Bonds		-			218			-	218
         Derivative transactions:
         Exchange related		-			6,137			-	6,137
         Total assets	¥	34,788		¥	6,356		¥	- ¥	41,144
         Derivative transactions:
         Interest rate related		-			(33)			-	(33)
         Commodity related		-			(122)			-	(122)
         Total liabilities	¥	- ¥			(155)		¥	- ¥	(155)

         March 31, 2025 Thousands of U.S. dollars

         Marketable securities: Available-for-sale securities:

         Stocks	$ 118,179	$ -	$ - $ 118,179
         Bonds	-	1,398	- 1,398
         Derivative transactions:
         Exchange related	-	36,337	-	36,337
         Interest rate related	-	1,355	-	1,355
         Commodity related	-	274	-	274

         Total assets $ 118,179 $ 39,366 $ - $ 157,545

         Derivative transactions:

         Exchange related	-	(34)
         Interest rate related	-	(506)
         Commodity related	-	(34)

         - (34)

         - (506)

         - (34)

         Total liabilities $ - $ (574) $ - $ (574)

      2. Financial instruments other than those reported in the consolidated balance sheets at fair value

      Level 1 Level 2 Level 3 Total

      March 31, 2025 Millions of yen

      Marketable securities:

      Stocks of subsidiaries and affiliates	¥	50,039		¥	-		¥	- ¥	50,039
      Other		-			391			-	391
      Total assets	¥	50,039		¥	391		¥	- ¥	50,430
      Bonds payable		-			737,240			-	737,240
      Long-term borrowings		-			1,952,711			-	1,952,711
      Total liabilities	¥	-		¥	2,689,951		¥	- ¥	2,689,951

      March 31, 2024 Millions of yen

      Marketable securities:

      Stocks of subsidiaries and affiliates	¥	9,632		¥	-		¥	- ¥	9,632
      Other		-			30,599			-	30,599
      Total assets	¥	9,632		¥	30,599		¥	- ¥	40,231
      Bonds payable		-			858,475			-	858,475
      Long-term borrowings		-			1,851,664			-	1,851,664
      Total liabilities	¥	-		¥	2,710,139		¥	- ¥	2,710,139

      March 31, 2025 Thousands of U.S. dollars

      Marketable securities:

      Stocks of subsidiaries and affiliates	$ 334,644			$ -		$ - $ 334,644
      Other	-			2,616		- 2,616
      Total assets	$ 334,644			$ 2,616		$ - $ 337,260
      Bonds payable	-			4,930,385		- 4,930,385
      Long-term borrowings	-			13,058,992		- 13,058,992
      Total liabilities	$	-	$	17,989,378	$	-	$	17,989,378

      (Note) Explanation of valuation techniques and inputs used in the calculation of fair value

      Marketable securities

      Stocks are classified as Level 1 fair value because they are quoted on exchanges. Bonds are classified as Level 2 fair value because the fair value is based on prices quoted on exchanges or prices provided by correspondent financial institutions.

      Corporate bonds

      Bonds with market price are based on market prices, while those without market price are calculated based on the conditions that would apply if similar corporate bonds were newly issued and are classified as Level 2 fair value.

      Long-term borrowings

      The fair value of long-term borrowings is calculated based on the conditions that would apply if similar borrowings were newly made and are classified as Level 2 fair value. Certain borrowings are subject to special treatment as interest rate swaps and are calculated based on the conditions that would apply if they were accounted for as a single unit with the relevant derivative transactions.

      Derivative transactions

      Transactions with financial institutions are calculated based on the prices quoted by the counterparty financial institutions and are classified as Level 2 fair value. Interest rate swaps that qualify for hedge accounting are accounted for as an integral part of the hedged items.

9. Marketable Securities and Investments Securities
   1. Held-to-maturity debt securities as of March 31, 2025 and 2024 were as follows:

      Carrying

      value Fair value Difference

      As of March 31, 2025 Millions of yen

      Securities whose fair value exceeds carrying value: National and local government bonds, etc.	¥	-		¥	-		¥	-
      Bonds payable Other		- -			- -			- -
      Subtotal		-			-			-
      Securities whose carrying value exceeds fair value: National and local government bonds, etc.		-			-			-
      Bonds payable Other		- 400			- 391			- (9)
      Subtotal		400			391			(9)
      Total	¥	400		¥	391		¥	(9)

      As of March 31, 2024 Millions of yen

      Securities whose fair value exceeds carrying value:

      National and local government bonds, etc. Bonds payable Other	¥	- -200		¥	- -204		¥	- -4
      Subtotal		200			204			4
      Securities whose carrying value exceeds fair value:
      National and local government bonds, etc. Bonds payable Other		- -400			- -395			- -(5)
      Subtotal		400			395			(5)
      Total	¥	600		¥	599		¥	(0)

      As of March 31, 2025 Thousands of U.S. dollars

      Securities whose fair value exceeds carrying value: National and local government bonds, etc.	$ -		$ -		$ -
      Bonds payable Other	- -		- -		- -
      Subtotal	-		-		-
      Securities whose carrying value exceeds fair value:
      National and local government bonds, etc.	-	-		-
      Bonds payable	-	-		-
      Other	2,678	2,616		(62)

      Subtotal	2,678		2,616		(62)
      Total	$ 2,678		$ 2,616		$ (62)

   2. Available-for-sale securities as of March 31, 2025 and 2024 were as follows:

      Carrying value

      Acquisition

           cost            Difference    

      As of March 31, 2025 Millions of yen

      Securities whose carrying value exceeds acquisition cost:

      Stocks		¥	14,168		¥	4,948		¥		9,220
      Bonds
      National and local government bonds, etc.			-			-				-
      Bonds payable			209			200				9
      Other			-			-				-
      Other			-			-				-
      Subtotal			14,377			5,148				9,229
      Securities whose acquisition cost exceeds carrying value:
      Stocks			3,503		4,491					(988)
      Bonds
      National and local government bonds, etc.			-		-					-
      Bonds payable			-		-					-
      Other			-		-					-
      Other			-		-					-
      Subtotal			3,503		4,491					(988)
      Total		¥	17,880		¥ 9,639				¥	8,240
      As of March 31, 2024					Millions of yen
      Securities whose carrying value exceeds acquisition cost:
      Stocks		¥	32,399		¥ 8,072				¥	24,327
      Bonds
      National and local government bonds, etc.			-		-					-
      Bonds payable			218		200					18
      Other			-		-					-
      Other			-		-					-
      Subtotal			32,618		8,272					24,346
      Securities whose acquisition cost exceeds carrying value:
      Stocks			2,388			2,724				(335)
      Bonds
      National and local government bonds, etc.			-			-				-
      Bonds payable			-			-				-
      Other			-			-				-
      Other			30,000			30,000				-
      Subtotal			32,388			32,724				(335)
      Total		¥	65,006		¥	40,996		¥		24,010

      As of March 31, 2025 Thousands of U.S. dollars

      Securities whose carrying value exceeds acquisition cost:

      Stocks Bonds National and local government bonds, etc.	$ 94,752 -		$ 33,091 -		$ 61,661 -
      Bonds payable Other Other	1,398 - -		1,337 - -		61 - -
      Subtotal	96,151		34,429		61,722
      Securities whose acquisition cost exceeds carrying value:
      Stocks Bonds National and local government bonds, etc.	23,426 -		30,036 -		(6,609) -
      Bonds payable Other Other Subtotal	- - -23,426		- - -30,036		- - -(6,609)
      Total	$ 119,578		$ 64,466		$ 55,112

   3. Available-for sale securities that were sold during the fiscal years ended March 31, 2025 and 2024 were as follows:

        Sales value  

      Total profit

           on sales    

      Total loss

           on sales    

      As of March 31, 2025 Millions of yen

      Stocks Bonds:	¥	3,018		¥	2,515		¥	-
      National and local government bonds, etc. Bonds payable Other Other:		- - - -			- - - -			- - - -
      Total	¥	3,018		¥	2,515		¥	-

      As of March 31, 2024 Millions of yen

      Stocks Bonds: National and local government bonds, etc. Bonds payable	¥	14,765 - -		¥	9,136 - -	¥	2 - -
      Other Other:		- -			- -		- -
      Total	¥	14,765		¥	9,136	¥	2

      As of March 31, 2025 Thousands of U.S. dollars

      Stocks Bonds: National and local government bonds, etc.	$ 20,187 -		$ 16,820 -		$ - -
      Bonds payable Other Other:	- - -		- - -		- - -
      Total	$ 20,187		$ 16,820		$ -

   4. Impairment losses on securities

      During the current consolidated fiscal year, impairment losses of 6,401 million yen (629 million yen in the previous consolidated fiscal year) were recognised on securities.

10. Investment in Capital of Associated Companies (Especially Amount of Investment to Jointly Controlled Entities)

    At March 31, 2025 and 2024, investment in the capital of associated companies (especially the amount of investment to jointly controlled entities) consisted of the following:

    Millions of yen

    Thousands of U.S. dollars

    March 31, 2025 March 31, 2024 March 31, 2025

    Investment in capital of associated	¥	2,001,733	¥	1,772,008	$ 13,386,835
    companies
    controlled entities>

11. Notes and accounts receivable - trade and contract assets

Notes and accounts receivable - trade and contract assets arising from contracts with customers at March 31, 2025 and 2024 were as follows:

Millions of yen

Thousands of U.S. dollars

At March 31, 2025 and 2024, inventories consisted of the following:

Millions of yen

Thousands of U.S. dollars

March 31, 2025 March 31, 2024 March 31, 2025