Shikoku Electric Power Incorporated : Annual Report - (annual e 03)

‌Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Response to Environmental Issues

For the sake of the earth and communities and their future, our Group is taking initiatives against climate change and initiatives for environmental conservation to reduce environmental burdens.

Initiatives Against Climate Change

In order to increase the effectiveness of our efforts to create our sustainable corporate value, we are striving to identify changes in social needs and risk factors from an ESG perspective and reflecting those we identified in our business operations. As part of it, in September 2019, we expressed our support for the TCFD* recommendations to sufficiently disclose information on climate change and fulfill our accountability to our stakeholders.

*Abbreviation for the "Task Force on Climate-related Financial Disclosures." The TCFD was established in December 2015 by the Financial Stability Board (FSB), which is composed of financial authorities of major countries, in response to a request from the G20 Finance Ministers and Central Bank Governors. In June 2017, the TCFD published recommendations on the disclosure of information concerning climate-related risks and opportunities.

Governance

Governance and promotion framework for measures against climate change

We have positioned our response to climate change as an important challenge in our business management, and we are actively taking initiatives against climate change under the leadership of our committee to promote sustainability (chaired by the President), committee for environmental management (chaired

by the General Manager of the General Planning Division), and committee to promote carbon neutrality (chaired by the President).

Enhancement of information disclosures

Shikoku Electric Power Group INTEGRATED REPORT and Yonden Group Environmental Data Book (in Japanese only)

Any issues that are deemed important in deliberation by the committees are submitted to the Board of Directors and other higher-level committees, and issues determined as important are described in the annual management plans and business plans to solve the issues.

Divisions, Branch Offices,

Power Stations, etc.

Implementation (D)

Collaboration

Important issues

Matters related to policies on initiatives aimed at carbon neutrality

Indicators / targets and information disclosure related to measures against climate change

Corporate Planning Department

Companywide plan dissemination

Inspection (C) / Revision (A)

Concentration of activities

Shikoku Electric Power Transmission & Distribution Co., Inc.

Shikoku Electric Power

Higher-ranking committees such as the Board of Directors Items positioned as particularly important

Performance-linked remuneration system in consideration of climate change measures

We introduced a performance-linked remuneration system (see page 67) for our directors and other officers to reflect our

achievements for climate change in their remuneration in order to advance our efforts for low-carbon implementation and decarbonization.

Shikoku Electric Power Group INTEGRATED REPORT 2025 47

Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Response to Environmental Issues

Risk management

We recognize the importance of managing climate change-related risks, and every year we consider the likelihood of the risks occurring and their impact on income and expenditures (increase in costs) to identify climate change-related risks that could have a significant impact on our business. The identified

Strategy

We will continually assess how climate change-related risks and opportunities will affect our business with conceivable scenarios, and based on the results of the assessment, we will develop and implement necessary measures and

risks are checked by management, and confirmed risks are mentioned in our business plans for the next year to let our employees prevent the risks from occurring.

* The management system for climate change-related risks is integrated into the companywide risk management system (see page 71).

Changes in global average temperature, using 1850 to 1900 as a baseline

(°C)

5

Risks and opportunities

We have identified climate change-related risks and opportunities for the 1.5°C and 4°C scenarios. We evaluated and confirmed the major impacts on our business's income and expenditures under each scenario, and found that while there is a possibility of increased costs mainly due to stricter regulations on thermal power sources and introduction of carbon pricing, we can also expect improved income and

Key risks, opportunities and measures extracted from each scenario

expenditures from increased value of non-fossil power sources and progress in electrification/expanding demand for low-carbon and decarbonized power.

Also, we considered measures to minimize the risks and maximize the opportunities. The measures have already been described in our Group's Medium-Term Management Plan, and we will do our business according to the plan to help realize a sustainable society.

countermeasures.

Scenario selection

To curb temperature rise, we selected a scenario in which no additional countermeasures are taken (4°C scenario*1), and a scenario in which currently announced policies are fully achieved and additional countermeasures are taken (1.5°C scenario*2), and envisioned outlooks for the electricity industry under the scenarios.

*1 Reference: Stated Policies Scenario (STEPS) by the International Energy Agency (IEA), SSP5-

8.5 in the Sixth Assessment Report by IPCC

*2 Reference: Net Zero Scenario (NZE) by the International Energy Agency (IEA) and SSP1-1.9 in the Sixth Assessment Report by IPCC

Future image of the electric power business

4 SSP3-7.0

3 SSP2-4.5

2

SSP1-2.6

1

0

-1

1950 2000 2015 2050 2100 (Year)

Source: IPCC AR6 WG I

*1 Short term: up to 3 years, Medium term: up to 10 years, Long term: over 10 years

*2 Carbon price refers to the 2024 EU-ETS standard value of about 10,000 yen/t-CO2

*3 Estimated from fiscal 2024 sales revenue (retail + wholesale): approx. 700 billion yen

*4 Estimated from fiscal 2024 fundraising results of approx. 57 billion yen

*5 Estimated from fiscal 2024 electric power generation by non-fossil power sources (nuclear, renewables): approx. 8 billion kWh

Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Response to Environmental Issues

Transition plan: Carbon Neutral Challenge 2050

Our Group has touted our goal to become carbon neutral in 2050 as a long-term priority within our Medium-Term Management Plan.

For the challenge, based on the measures for addressing climate change-related risks and opportunities incorporated in

Indicators and targets

We have set targets for various climate-related indicators, including CO2 emissions from our retail sector and power generation sector. We are promoting initiatives that are aimed at achieving the goals to minimize climate change-related risks and maximize opportunities.

Targets for reduction of greenhouse gas emissions for fiscal 2030 and 2035

Our Company has set targets to reduce greenhouse gas emissions (direct emissions from our electric power generation fuel use, etc.) and CO2 emissions from the retail sector by 50% in fiscal 2030 and 60% in fiscal 2035 compared to fiscal 2013.

Going forward, we aim to achieve these targets by maximizing the use of nuclear electric power generation through continued safe and stable operation, developing new renewable energy sources, constructing high-efficiency LNG thermal power with a view to hydrogen co-firing, considering the introduction of ammonia fuel for decarbonization of power sources, and further promoting the use of electric energy through electrification, including in the industrial and transportation sectors.

Green bonds

From the viewpoint of diversifying our financing, we have been issuing green bonds to get funding only for environmental conservation projects to achieve our carbon neutrality by 2050. For our green bonds, DNV BUSINESS ASSURANCE JAPAN K.K. a third-party evaluation organization, has confirmed that the bonds conform to the principles of green finance.

our Medium-Term Management Plan, we have formulated a roadmap (pages 28 and 29) for both the low-carbon and decarbonized power sources and more application of electric energy with a view to fiscal 2030, fiscal 2035 and even further ahead to fiscal 2050. We promote these initiatives while taking environmental conservation into consideration.

Indicators and targets

Fiscal 2024 emissions results for our electric power generation and retail sector

Emissions volume [thousand tons-CO2]

Criteria FY2013

Result FY2024

7,160 (-41%)

11,010 (-44%)

Emissions throughout the supply chain in FY2023*1

*1 Calculated for Shikoku Electric Power and consolidated subsidiaries (excluding companies with negligible emissions) with reference to the "Basic Guidelines for Calculating Greenhouse Gas Emissions through the Supply Chain (ver. 2.6)" (Ministry of the Environment

/ Ministry of Economy, Trade and Industry) and other relevant documents

*2 Direct emissions from our electric power generation and that of consolidated subsidiaries

*3 Indirect emissions associated with the use of electricity purchased from other companies at our workplaces and offices

*4 Indirect emissions contained in electricity procured from other companies, etc.

Overview of green bonds (as of March 31, 2025)

Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Response to Environmental Issues

Promoting Environmental Preservation Activities

Our Group continuously works to reduce the environmental impact generated by business activities and to engage in environmental conservation activities together with local communities.

Analysis of dependencies and impacts STEP 1: Screening using ENCORE

For the analysis of dependencies and impacts on natural capital in the power generation business and the transmission and

distribution business, we used the TNFD-recommended tool "ENCORE"* to classify the degree of dependency and impact on natural capital for each business activity into three levels.

* A tool for assessing dependencies and impacts on natural capital in business processes based on global data.

Disclosure based on TNFD recommendations

In December 2022, the "Kunming-Montreal Global Biodiversity Framework"*1 set the achievement of nature positive*2 as a goal, and in Japan, the "Nature Positive Economic Transition Strategy" was announced as a national strategy in March 2024, highlighting the growing importance of biodiversity both domestically and internationally.

ausing soil and water pollution

Amid these developments, we recognize that in order to preserve the Shikoku region-a nature-rich area with diverse ecosystems-for the future, it is necessary to approach this issue through the business activities of our Group, which are deeply connected to nature. Since April 2011, our Group has incorporated biodiversity conservation into the "Environmental Action Guidelines" based on the "Shikoku Electric Power Group

Environmental Policy," and has been implementing activities aimed at reducing impacts on biodiversity and ensuring the sustainable use of the benefits derived from its diversity.

As part of these efforts, we have begun analysis in line with the TNFD*3 recommendations framework announced in September 2023 to identify dependencies, impacts, risks, and opportunities related to natural capital including biodiversity in our business activities, and will continue to enhance our disclosures going forward.

*1 An international goal adopted at COP15 (15th Conference of the Parties to the Convention on Biological Diversity) to promote the conservation and sustainable use of biodiversity.

*2 A goal to halt loss of biodiversity by 2030 and fully restore nature by 2050.

*3 Abbreviation for "Taskforce on Nature-related Financial Disclosures". It was established in June 2021 and, it has been developing a framework for assessing and disclosing nature-related risks and opportunities, and published TNFD Recommendations v1.0 in September 2023.

Very High High Medium or below

Governance and promotion system for biodiversity Formulation of policies and strategies regarding dependencies, impacts, risks, and opportunities related to nature, including biodiversity, as well as planning and supervision of various initiatives such as environmental conservation activities in collaboration with local communities, are coordinated and

Risk management

For natural risks judged to have a particularly significant impact on business management during deliberations by the Environmental Management Committee and the Sustainability Promotion Council, the matter is submitted to higher-level

Strategy

Scope and methods of analysis

L (Locate)

Discovering points of contact with nature

E (Evaluate)

Assessing dependencies and impacts

A (Assess)

Assessing key risks and opportunities

P (Prepare)

Preparating for response and reporting

The scope of analysis covers the power generation business and the transmission and distribution business in the Shikoku region, operated by our Company and Shikoku Electric Power Transmission & Distribution Co., Inc. These business domains that form the foundation of our Group and have many points

deliberated by the Environmental Management Committee (Chair: General Planning Office Director) under the governing of the Sustainability Promotion Council (Chair: President), which comprehensively oversees ESG. ( See P.25)

bodies including the Board of Directors, and efforts are made to improve and enhance initiatives. Going forward, the Sustainability Promotion Council will play a central role in deepening the LEAP approach (described later).

of contact with natural capital.

For the analysis, we applied the LEAP approach recommended by TNFD. This analysis focused mainly on "L" and "E" as a model case, and we will continue to pursue "L" and further analyze "A" and "P" going forward.

STEP 2: Analysis of dependencies and impacts based on our Group's background

In addition to the above ENCORE evaluation, in consideration of the facilities and operational status of our Group, we analyze the dependencies and impacts on natural capital in the power generation business and the transmission and distribution business in the Shikoku region as follows.

• In thermal and nuclear power generation, since the water used is mainly seawater, we believe that the dependency on river water (freshwater) is low. In addition, most of the steam (freshwater) used to drive turbines is recirculated after cooling, thereby reducing dependency.

• In thermal power generation, we operate in compliance with environmental laws and agreements with local governments by installing

  Analysis of points of contact with nature

  To understand points of contact with nature other than GHG emissions, which have already been analyzed, we evaluated regions with physical water risks using the TNFD-recommended tool WRI Aqueduct Water Risk Atlas* from the perspective of physical risks. As a result, we confirmed that water stress (the ratio of water supply to water demand) is "Low - Medium" at all sites and there are no sites with high water stress.

  Going forward, as the next process in analyzing points of contact with nature by evaluating dependencies and impacts on natural capital, we plan to identify and assess "areas of concern" from an ecological perspective at business activity sites.

• After determining the scope of analysis, identify the regions where our Company operates and specify areas of concern from the perspectives of natural capital and water risk.

• Identify the dependencies and impacts on natural capital in business activities, and evaluate their magnitude and scale.

  • Evaluate short-, medium-, and long-term risks and opportunities.

  • Consider countermeasures and other actions based on the evaluation results.

• Based on the evaluation of risks and opportunities, consider strategies and target setting.

• Disclose information in accordance with TNFD Recommendations.

flue gas desulfurization and denitrification equipment, electrostatic precipitators, and wastewater treatment facilities, and we believe that the impact on the atmosphere and other environments is low.

For initiatives regarding the impact of GHG emissions, see "Initiatives Against Climate Change" (P.47).

* A tool provided by the World Resources Institute (WRI), an international environmental NGO, that can assess water risk by region.

Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Response to Environmental Issues

Indicators and targets

Our Group sets environmental management targets for environmental conservation activities and aims for continuous reduction of environmental impact.

Among these, for the TNFD-recommended disclosure indicators of "air pollutants other than GHGs" and "waste generation and treatment," we are taking the following initiatives.

Prevention of air pollution

Achievement in FY2024

SOx emission intensity

Target: 0.3 g/kWh

Result: 0.1 g/kWh

power generated by oil, and we replaced the aging coal-fired power plant facilities in the Saijo Power Plant Unit 1 with the latest flue gas desulfurization and denitrification equipment, thereby successfully keeping the intensity of our SOx and NOx emissions at low levels in recent years.

Achievement in FY2024

Effective utilization rate of waste

Target: Approx. 99%

Result:

98.5%

Effective utilization rate of coal ash

Target: More than 99%

Result: 99.2%

Effective use of waste

Our environmental conservation activities

Our Group conducts environmental conservation activities with the aim of achieving targets for natural capital and contributing to regional society. The main initiatives are as follows.

Initiatives at our electric power stations

To minimize impacts on rivers and to comply with laws and regulations concerning water, at our hydroelectric power plants, we are determined to perform the following activities.

• Install equipment able to take in water with low turbidity and return it downstream after use for power generation

• Discharge water for keeping river function from dams to

  maintain the environments downstream

  discharge in accordance with agreements with local governments.

  
  
  

  Also, with respect to the construction of a power plant, we conduct environmental assessments to predict and evaluate in advance the impact of the construction work and the operation of the power plant on the

  surrounding air and water environment, flora and fauna, and ecosystems, and we apply the outcomes of the assessments to our

  environmental

  Achievement in FY2024

  NOx emission intensity

  Target: 0.5 g/kWh

  Result: 0.2 g/kWh

  
  
  
  
  
  

  Almost all of coal ash generated at our coal-fired power plants is recycled as a raw material for cement and as a concrete

  • Remove driftwood and dust from reservoirs to use them as biomass fuel or other uses and conduct other positive initiatives.

conservation measures.

Fish conservation activities

Flora and fauna surveys in the marine area

surrounding the Saijo Power Station

In order to reduce emissions of sulfur oxides (SOx) and nitrogen oxides (NOx) from our thermal power plants into the atmosphere, we are using fuels with low sulfur content, installing flue gas desulfurization and denitrification equipment, and implementing proper control of combustion.

And, we systematically have renewed our aging oil-fired thermal power facilities at the Sakaide Power Station to implement the LNG combined cycle and curb the amount of

Intensity of SOx and NOx emissions from thermal power plants

admixture in various applications, such as bridges, roads, and the exterior walls of buildings.

Recent example of recycling of coal ash

The coal ash is used as a spraying material in the construction of the Goshikidai Tunnel

(Sakaide side section) in Kagawa Prefecture.

Client: Kagawa Prefecture, Contractor: Hazama Ando and Manabegumi JV

Driftwood that gathers at a dam is collected, pulled up, and then used as building materials for houses and furniture (Kominono Dam)

River fish swim both upstream and downstream during their lives. At some intake weirs of hydroelectric power plants, we have installed fishways to allow fish to swim upstream, thereby working to conserve the ecosystem.

(g/kWh)

0.6

SOx NOx

Recycling of remains of demolished structures

At our thermal and nuclear power plants, we are working to

reduce the amount of water required for power generation

0.5

0.4

0.3

0.2

0.1

Average intensity of NOx emissions in major countries*

All of our old and replaced copper and aluminum wires are recycled as new wires and other materials.

Average intensity of SOx emissions in major countries*

All of our removed concrete columns are pulverized, separated from the reinforcing bars, and then reused as construction aggregate (roadbed material for road paving).

and are strictly complying with laws, regulations and other standards concerning water discharge. With respect to the seawater used to cool steam, we are controlling the temperature differences between the water intake and

Example of fishway installation: Saga Intake Weir (Saga Power Station)

0.0

2020

2021

2022

2023

COLUMN Environmental conservation activities together with local communities

We are working throughout the year with local communities around

Shikoku on environmental conservation activities (such as cleanups and forest preservation activities) mainly through Environment Month, which is sponsored by the Ministry of the Environment.

Activities in Shimanto Yonden Forest

At our Kochi Branch Office, employees are participating in Kochi Prefecture's Forest Development Project in Collaboration with Environmentally Advanced Companies.

In a forest (in Shimanto Town) named Shimanto Yonden-no-mori, they are planting trees and weeding to preserve the forest together with the local communities.

Forest conservation activities at Shimanto Yonden-no-mori

2024 (FY)

* Derived from 2022 data of four major countries (Germany, United Kingdom, USA, and France)

Intensity of SOx and NOx emissions in major countries (thermal power plants)

How wires and poles are recycled

Shikoku Electric Power (FY2024)

Germany

(2022)

United Kingdom (2022)

USA

(2022)

France

(2022)

(g/kWh)

0.1

0.2

• SOx

• NOx

0.4

0.1

0.8

0.5

0.3

0.3

0.2

0.4

0.0 0.2 0.4 0.6 0.8

Power lines before recycling

Recycled power lines

* Compiled based on the website of the Federation of Electric Power Companies of Japan

("Energy and the Environment")

Concrete poles before recycling

Recycled construction aggregates

WEB WEB

Environmental Management Targets (in Japanese only)

https://www.yonden.co.jp/energy/environment/policy/index.html

Environmental conservation activities of the Shikoku Electric Power Group (in Japanese only)

WEB

Shikoku Electric Power Group Environmental Data Collection (in Japanese only)

https://www.yonden.co.jp/energy/environment/data/index.html

https://www.yonden.co.jp/energy/environment/preservation_activity/index.html

‌Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Practice of Human Capital Management

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Human Resources Strategies to Maximize the Value of Our Human Capital

PP.30-31 Overall image of human resources strategy and KPI for each key issue

In our Group, under the basic policy of the "Shikoku Electric Power Group Human Resource Strategy," which is to "create sustainable value as the Company and employees grow together," we have positioned "1) Enhancing employee engagement,""2) Promoting talent management linked to business strategy,""3) Promoting DE&I," and "4) Creating a safe and healthy workplace" as key issues to maximize human capital value in our management strategy, and are implementing a variety of initiatives.

[2] Promoting Talent Management Linked to Business Strategy

We identify and analyze the gap between the "As is" (current) and the "To be" (ideal) for each business division, and are working to close these gaps by utilizing a talent management system (human resource data platform).

Support for career development

In technical departments that support the stable supply of electricity, we systematically develop the necessary talent for business operations by promoting the acquisition of technical skills required for equipment maintenance and operation, as well as knowledge of relevant laws, regulations, and rules, based on practical training programs developed for each department.

In recent years, we have also focused on autonomous career

[1] Enhancing Employee Engagement

Based on the issues identified through regularly conducted engagement surveys, we strive to improve engagement by encouraging proactive communication and improvement actions within each workplace.

Understanding and penetration of management and human resource strategies

We have newly established "Employee Actions (CREDO)" and "Promises from the Company (PROMISE)" as basic policies of our human resources strategy. Also, by having the Company and employees share these and work on daily operations and business management, we aim to create a virtuous cycle of continuous mutual growth.

As specific initiatives to promote understanding, we provide various opportunities such as proactive information sharing by management, opinion exchange meetings with work sites, and town hall meetings between the president and employees, to ensure ongoing communication with employees. This deepens employees' understanding of management and human resource strategies, while management directly listens to input from employees and reflects it into our initiatives.

Basic polices of human resources strategy

Deployment of human resources strategy

Based on survey results, we have analyzed that supporting employee challenges and growth is particularly important, and are reflecting this in our talent management initiatives.

In addition, results are provided as feedback to managers (section managers and above) at each workplace, and we are working to raise awareness and improve management skills through seminars and sharing examples of actions. Currently, we are encouraging managers in particular to support the challenges of members and fostering motivation through recognition and appreciation using the Thanks Point system.*

* A system in which employees express gratitude by awarding points to each other

Furthermore, for young employees within their first five years at the Company, we conduct monthly pulse surveys and provide detailed follow-ups such as individual interviews based on their responses. Through the efforts, we successfully allow 99.2% of new graduates to keep working for our company three years after joining the Company.

Overall engagement rank

FY2023 FY2024 Target (at the end of FY2030)

C+

B- B

5th grade out of 14 grades 4th grade out of 14 grades 3rd grade out of 14 grades

*1 Introduced the engagement survey (Wevox) provided by Atrae Inc.

*2 Our fiscal 2024 result of B- is one rank higher than the average of other companies in the same industry and size using the survey.

Securing diverse talent

To steadily secure talent to support the electric power business, we are strengthening recruitment activities by enhancing contact with participants through internships and roundtable discussions.

Furthermore, to ensure stable business operations and smooth maintenance and succession of on-site technical skills, we are considering revising the current reemployment system and implementing a phased extension of the retirement age up to 65, so that veteran employees with abundant knowledge and experience can play an even greater role. In addition, based on the new Medium-Term Management Plan 2030, we are acquiring immediately effective talent in expansion and challenge areas through career (mid-career) recruitment, and have established a business development course in new graduate recruitment to strengthen the acquisition of talent expected to grow and succeed in these areas.

We are also working to maintain and strengthen relationships with those who have left the Company or Shikoku Electric Power Transmission & Distribution Co., Inc. (alumni) due to career changes or family circumstances, and are striving to secure talent with diverse experience and knowledge gained outside the Company by rehiring them through comeback recruitment.

Overview of talent management linked to business strategy

development, clarifying desired career paths and skills to be developed through interviews with managers, and providing growth opportunities such as job rotation and self-development support based on career orientation.

In particular, to develop talent responsible for expansion areas, we are implementing development assignments to different departments, in-house internships, business communication training centered on language programs, and work training at overseas companies and venture companies. We are also actively developing DX talent by establishing specialized training programs.

P.32 Promotion of Digital Transformation (DX)

Strategic personnel assignment

By visualizing employee information with the talent management system and identifying and analyzing talent gaps for each business division, as well as enhancing search functions for talent, we are optimizing company-wide talent placement. We are also working on the planned placement and development of future management candidates by providing diverse experiences and assignments to responsible positions that contribute to the development of management qualities and abilities.

To be

For building relationships of continued growth together (CREDO ∞ PROMISE)

Identification of As is-To be gaps of human resource

Identify the number of personnel required to achieve the business strategy for each

(Required Human business division, and specify

To be

Resources)

the necessary work experience and skills, focusing on the expansion area.

Identifying Gaps

As is

(Current Human Resources)

Forecast personnel requirements for each business division and grasp individual data on current human resources such as work experience and skills.

Career Development Support

Initiatives to bridge gaps

(Required Human Resources)

Employee Actions

Company Commitments

Building Relationships Where Company and Employees Continue to Grow Together

Enhancement of initiatives to support employees' career development

Support of measures to improve management skills of managers

Review of the HR and compensation system to encourage challenge and growth

Closing the Gaps

Strategic Personnel Assignment

Optimal placement based on work experience and skills

Promotion of interdepartmental transfers for companywide optimization

Planned placement of core human resources (such as department manager candidates)

Meaning behind the mark*

As is

(Current Human Resources)

Securing Diverse Human Resources

Expansion of career (mid-career) recruitment

Implementation of comeback hiring (re-employment of former employees)

Utilization of veteran employees through phased extension of retirement age

Accumulation of Human Resource Data Utilization of Human Resource Data

* The continual growth of our Company and employees through our CREDO and PROMISE is depicted using the initials of "CREDO and PROMISE" and the "∞" symbol.

Talent Management System

WEB

Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Practice of Human Capital Management

WEB

Promoting DE&I (in Japanese only)

https://www.yonden.co.jp/corporate/csr/subject/diversity/index.html

Please also see our website for information on our initiatives to promote DE&I.

Promotion of health management (in Japanese only)

https://www.yonden.co.jp/corporate/csr/subject/kenko_keiei/index.html

1. Promoting DE&I

   Under the commitment of top management, we have established a dedicated organization for promoting DE&I, and are fostering a vibrant workplace culture where employees respect and recognize each other, while providing optimal support and opportunities for each individual according to their circumstances.

   Promotion of the careers of female employees

   We are strengthening support for career development and raising awareness among managers so that female employees can find fulfillment and thrive in their work. We also aim to raise the ratio of female managers to the same level as the ratio of female employees over the medium to long term, and are implementing planned development and placement, proactive promotion, and follow-up after promotion to management positions.

   In addition, since our Company and Shikoku Electric Power Transmission & Distribution Co., Inc. have many workplaces such as power plants and transmission & distribution sites where the ratio of male employees is high, the ratio of female employees remained at 9.6% in fiscal 2024. For this reason, we are focusing on strengthening the recruitment of female technical staff and creating a more comfortable workplace environment.

   Trends in the number and ratio of female managers

   Support for balancing work with childcare or nursing care We are developing and enhancing various support systems, such as a childcare leave system, to help employees balance their work and family lives. In fiscal 2025, we introduced a system that provides a childcare leave support bonus for all to members of workplaces where employees take childcare leave, encouraging the use of childcare leave. In addition, we are working to foster a workplace culture that makes it easy to use these systems by promoting understanding of work-life balance support measures and raising awareness among workplace managers through the DE&I portal site, and by establishing dedicated consultation desks.

   Ratio of employees taking childcare leave (result in FY2024)

   Women

   100%

   Men

   94.1%

   *1 Total for our Company and Shikoku Electric Power Transmission & Distribution Co., Inc.

   *2 For men, the acquisition rate includes special leave (up to 5 days) at the time of spouse's childbirth.

2. Creating a Safe and Healthy Workplace

   The safety and health of our employees are fundamental to promoting corporate activities. We are developing a workplace environment where employees can work with peace of mind and safety, and are promoting various health initiatives so that employees can stay physically and mentally healthy and fully demonstrate their abilities.

   Initiatives for safety management

   Based on the belief that safe and secure workplaces free of accidents are essential for corporate activities, we are promoting safety measures to eliminate the risk of accidents and create comfortable workplaces.

   Specifically, we have established the Shikoku Electric Power Group Safety Promotion Committee, which considers and promotes measures to eradicate occupational accidents, including those at Group companies and partner companies. Every July, we hold the Shikoku Electric Power Group Safety Emphasis Period, during which we conduct safety patrols, lectures, and other activities to raise safety awareness throughout the Group. In recent years, as an initiative to enhance sensitivity to hazards related to serious accidents such as electric shock and falls, we have been actively conducting

   Number of occupational accidents requiring time off from work (FY2024)

   	Shikoku Electric Power Company and Shikoku Electric Power Transmission & Distribution Co., Inc.	Subcontractors	Total
   Occupational accidents	0	6	6
   Traffic accidents	0	0	0
   Total	0	6	6

   Initiatives aimed at health and productivity management Under the president's Declaration of Health Management, we are actively promoting health management to maintain and improve employee vitality, which is the foundation for creating sustainable corporate value.

   Specifically, we assign occupational health staff (industrial physicians, nurses, counselors, etc.) to business sites, implement mental health measures such as individual care and workplace environment improvements based on stress check results, and provide individual health guidance to reduce the risk of lifestyle-related diseases. These efforts have been recognized, and we have been certified as an "Outstanding Organization of KENKO Investment for Health" for six consecutive years under the Recognition Program for the Outstanding Organizations of

   (People)

   4.2

   4.3

   3.5

   2.8

   3.1

   
   
   

   100

   80

   60

   5.0

   (%)

   5.0

   4.0

   3.0

   Promotion of employment of the challenged

   We established Yonden Plus Corporation (a special subsidiary company for the employment of persons with disabilities) to provide positive support for the independence and social participation of the challenged. We are helping to expand

   hands-on safety training at dedicated facilities owned by Group companies, mainly for technical employees of our Company and Shikoku Electric Power Transmission & Distribution Co., Inc.

   KENKO Investment for Health.*

   * A program that recognizes particularly outstanding organizations that practice health and productivity management and strategically implement employee health management from a management perspective.

   40 2.0

   20 1.0

   employment opportunities for the challenged, and our employment rate for the challenged is 3.2% (as of June 2025),*

   Initiatives We Conduct as a Company That Respects People

   0 2020

   2021

   2022

   2023

   2024

   2025

   (Target)

   0

   (FY)

   which is higher than the statutory employment rate (2.5%).

   * Total for our Company, Shikoku Electric Power Transmission & Distribution Co., Inc., Yonden

   Our Group has established a human rights due diligence framework based on the "Shikoku Electric Power Group Human

   Overview of initiatives to respect human rights

   • Our Company ■ Shikoku Electric Power Transmission & Distribution

     Ratio of female managers
     
     

   *1 The target is the total for our Company and Shikoku Electric Power Transmission & Distribution Co., Inc.

   *2 Both the target and actual results are the total for our Company and Shikoku Electric Power Transmission & Distribution Co., Inc.

   Fostering an organizational culture that embraces diversity We are supporting the autonomous career development of employees and working to foster an organizational culture where DE&I is the norm by promoting initiatives that leverage talent diversity.

   Business Co., Ltd., and Yonden Plus Co., Ltd.

   More opportunities for specialized and experienced workers We certify skilled frontline technicians and engineers with advanced, specialized knowledge and skills as professionals and utilize them in specialized fields. Moreover, we set up a post-retirement re-employment system to enable older workers with extensive work experience to be active in maintaining and advancing on-site technical skills and passing on their skills.

   Rights Policy," identifying and striving to prevent and mitigate negative impacts on human rights, including in the supply chain.

   In addition, to appropriately address human rights issues, we have established a grievance mechanism and, in the event of negative impacts on human rights, we work to remedy and correct the impacts through appropriate procedures and dialogue.

   Furthermore, to foster employee awareness of respect for human rights, we conduct company-wide education and study sessions at each workplace on business and human rights.

   We disclose the results of human rights due diligence and related initiatives on our Company's website.

   The three corporate responsibilities*	Commitment at the management level	Formulation and publication of the Shikoku Electric Power Group Human Rights Policy
   		Identify and assess the risk of human rights violations	Prevent and mitigate human rights violations
   	Human rights due diligence
   		Disclose information about our human rights due diligence	Evaluate our efforts for human rights due diligence
   	Implementation of remedies	Establishment of a grievance mechanism (Establishment of consultation desks available to internal and external stakeholders)

   * Corporate responsibilities as indicated in the United Nations "Guiding Principles on Business and Human Rights"

   Primary initiatives

• Town hall meetings between the president and employees

• Holding e-learning and lectures for managers

• DE&I workshops

• In-house networking events mainly for young employees

• Providing information using the DE&I portal site

WEB

Initiatives to respect human rights (in Japanese only)

https://www.yonden.co.jp/sustainability/social/policy/index.html

‌Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Coexisting Activities in Harmony with Communities

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Based in Shikoku, the Shikoku Electric Power Group is committed to sustainable growth by working together with the region, revitalizing local communities, solving challenges, and building trust through proactive communication.

Formulation of the Brand Statement Enhancement of Communication with Local Communities

Proactive disclosure of information and dialogue about our nuclear facilities

Recognizing the risks of nuclear power generation, we are committed to improving the safety and reliability of the Ikata

To more clearly convey the wishes and stance embodied in our corporate message "Drive Happiness Forward," we have newly formulated a brand statement in conjunction with the development of the new Medium-Term Management Plan 2030. We aim to not only share this with our employees, but also actively communicate it to the local community, so that people can understand the intentions behind the Shikoku Electric Power Group's initiatives.

* Brand statement: A concise written expression of a company's or brand's values, etc.

Drive Happiness Forward

When it comes to our own shopping, we often make choices quickly. But when we choose a gift for someone special, we take our time.

We find ourselves wondering, "Will this make them happy?" And somehow, that thought warms our hearts.

By thinking of others, we feel fulfilled. Perhaps that is what is called happiness. Through such moments, people feel connected -and at ease. Those connections help cultivate happiness from one person to another.

We want to support those feelings.

Together, let's create a future where safety, trust, and connections continue to spread.

Power Station with a strong determination that "there is no end to safety measures." We also place great importance on communication with the local community and are actively working to disseminate information.

In 1999, at the Ikata Power Station, we first introduced an emergency reporting system about all events other than the normal state to Ehime Prefecture and Ikata Town, and we have been running it ever since. This kind of our high transparency reporting system is called the "Ehime system", and it significantly helps ensure relationships of trust with the local society.

Since starting visiting-for-dialog activities in 1988, our staff

have made individual visits to approximately 24,000

Participation in Awa Odori festival as the Shikoku Electric Power Group Team

Education on energy for children

We are giving elementary and junior high school students "Delivery Energy Classes" using power generation models and videos throughout Shikoku to raise their interest in energy and environmental issues and to help them have a correct understanding of these issues. In addition, we organize on-site

Revitalizing the Shikoku Region and Addressing Local Challenges

households within a 20-km radius of Ikata Power Station in order to give explanations on our safety measures at the power

tours of our facilities and power plants for students.

On our website, we are also working on online educational

We are working together with companies and local governments in the Shikoku region to revitalize the area, promote tourism, and increase the number of mobile population.

"The Shikoku-ke Supporters Club", which brings together companies and organizations dedicated to the revitalization of the region and tourism, holds an annual pilgrimage trail walk to inspect the Shikoku pilgrimage route, and in 2025, the number of participants had expanded to about 10,000. We also support tourism activities that families can participate in together, such as the Marugame Liveliness Project, which promotes regional branding, and hands-on forestry events.

Shikoku Electric Power Transmission & Distribution Co., Inc. released a smartphone app, Pilgrimage Light+plus, to support Shikoku pilgrims participants, providing notifications upon arrival at sacred sites, information on nearby spots to visit, and content such as the Shikoku Map, where

users can post real voices, thereby

base for promoting the attractions of Setouchi and Shikoku, while the Naoshima location will be a traditional-style hotel where guests can experience island life, aiming to pass on the region's history and culture to future generations. Construction began in July 2024 for the Takamatsu location and in September 2025 for the Naoshima location, with both scheduled to open in 2027.

Agribusiness

We are engaged in agribusiness initiatives that contribute to revitalizing local agriculture and strengthening ties with regional society.

At Aitosa Co., Ltd., in addition to promoting smart agriculture through the development of pesticide-spraying robots and

AI-based grading devices for shishito peppers, we are creating local jobs and operating our business in close partnership with the community, including hands-on harvest activities for children and participation in local events.

plant and to listen to opinions in person.

We are determined to continue to listen carefully to the opinions of the local residents in order to further improve the safety of Ikata Power Plant.

Reports made in accordance with the safety agreement with Ehime Prefecture and Ikata Town (Unit: number of notifications)

* Overview of public notifications in Ehime Prefecture

Class A (Trouble, etc., that needs to be reported to the government): Immediate public notification Class B (An abnormal situation at a facility, etc., has occurred within the radiation control area): Public notification within 48 hours

Class C (Events other than classes A and B above): Public notification is given on the 10th of every month for all events in the preceding month

Coverage of our visiting-for-dialogue activities

Within a 20-km radius

Within a 10-km radius Ozu City

activities, such as enhancing energy education content for children and providing virtual tours of our power plants.

Fiscal 2024 results

Tour of our plant for elementary school students

Nanyo Medical Promotion Foundation (public interest incorporated foundation)

Through the Nanyo Medical Promotion Foundation, we have been providing a scholarship loan program (with a repayment

enhancing the value of the pilgrimage experience.

Tourism business

In collaboration with the Mandarin Oriental Hotel Group, we plan

At Ikata Service Co., Ltd., through our mandarin orange cultivation business, we collaborate with

producers on the

Eligible for visits:

Ikata Power Plant

Ikata Town

Yawatahama City

Seiyo City

exemption system) since FY2019 for students of the Ehime University School of Medicine, aiming to secure doctors for the Nanyo region centered on Yawatahama City and Ikata Town in Ehime Prefecture, enhance local medical care, and establish a

medical system in preparation for possible nuclear disasters.

to open Mandarin Oriental Setouchi at two locations-Takamatsu City and Naoshima Town-as hotels serving as hubs for circuit tourism in the Setouchi area. The Takamatsu location

Sadamisaki Peninsula to prevent the abandonment of orchards and focus on

Mandarin orange cultivation business

Approx. 24,000 households

Communication with local residents

Throughout Shikoku, we are engaged in electrical equipment

Currently, 12 students are enrolled as scholarship recipients of the foundation, three of whom have passed the national medical examination and are now working as resident doctors.

will be situated in the Sunport area, a transportation terminal, as a

developing new local specialty products.

maintenance, cleanup activities, and other social contribution

Scholarship program for securing doctors in the Nanyo region of

WEB WEB

Branding Special Website (in Japanese only)

https://www.yonden.co.jp/lp/shiawase_no_chikara/index.html

activities. We are also engaged in communication activities

Ehime Prefecture (in Japanese only)

WEB

https://www.nanyo-msp.jp/index.html

Shikoku Electric Power Group's Initiatives in Agriculture (in Japanese only)

https://www.yonden.co.jp/cnt_yonden-agri/

through participation in and aid for local events and festivals.

‌Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Enhancement and Strengthening of Corporate Governance

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Based on our purpose of contributing to regional development and providing comfortable, safe, and secure living, we have established the "Yonden Corporate Governance Basic Policy" to achieve sustainable enhancement of

1. Board of Directors (Chair: Keisuke Nagai)

   corporate value, and we are continuously working to strengthen our governance system, which serves as the foundation for fair and prompt decision-making.

   • Website information

     WEB WEB

     Basic Policy on Corporate Governance (in Japanese only)

     https://www.yonden.co.jp/corporate/ir/policy/governance.html
     
     

     Corporate Governance Report (in Japanese only)

     https://www.yonden.co.jp/assets/pdf/corporate/ir/library/governance/corporate.pdf
     
     

     The Board of Directors consists of 14 members (including 5

     independent outside directors) and is responsible for making decisions on important business execution and supervising the execution of duties by directors.

     Under the management strategy of our Group, the Board of Directors strives to ensure a well-balanced composition with

     diverse knowledge, experience, and abilities by identifying the skills

     management strategy, such as efforts toward decarbonization of power sources to achieve carbon neutrality and the formulation of the next Medium-Term Management Plan 2030.

     35.7%

     9

     Number of Directors 14

     5

     Internal directors

     64.3%

     Outside directors

     Corporate Governance Structure

     Even as our business environment undergoes significant changes, as an energy business operator with a public mission,

     We have also established voluntary committees, namely the Personnel Committee and the Compensation Committee,

     required of directors, such as accounting, risk management, and business development in growth fields, and appointing both internal and external directors with different areas of expertise, so

     that the Board as a whole can engage in thorough deliberation and

     [1] Board of Directors: 14 (including 2 women)

     Internal: 9

     External: 5 (36%)

     (Independent external: 5,

     including 2 women)

     Appointment / Dismissal

     Inquiry

     Audits, etc.

     Reports

     Reports

     Appointment / Dismissal / Supervision

     Audits

     Collaboration

     Reports

     Reports

     Instruction

     Instruction

     Audits

     Instruction

     Reports

     Reports

     [6] Internal Audit Division

     Internal Audits

     Regulation

     Compliance consultation office

     (Internal: General Affairs Dept., External: Lawyer)

     (Independent external: 5,

     including 2 women)

     External: 5 (71%)

     Internal: 2

     [3] Personnel Committee: 7

     (including 2 women)

Appointment / Dismissal

Appointment / Dismissal

(Independent external: 5,

including 2 women)

External: 5 (83%)

Internal: 1

(Independent external: 5,

including 2 women)

External: 5 (83%)

Internal: 1

we fulfill our management responsibilities to diverse stakeholders by adopting the structure of a company with an Audit and Supervisory Committee, thereby strengthening management oversight functions through increasing the number of independent outside directors and enhancing the agility of business execution through delegation of authority from the Board of Directors to directors.

appointing independent outside directors as chairpersons of each committee and ensuring that the majority of members are independent outside directors. This strengthens involvement in decisions regarding director remuneration and nominations, and ensures objectivity and transparency in governance.

make prompt and rational decisions based on diverse perspectives. (For the Board of Directors' skill matrix, see p.68)

In fiscal 2024, the 14 directors have engaged in thorough discussions on matters related to the Group's overall

The Role of Outside Directors

The role we most expect from our outside directors is to monitor and supervise management based on their wealth of experience and deep insight from a standpoint independent of business execution.

All of our outside directors serve as members of the Audit & Supervisory Committee and fulfill two key roles:

The role and activities of outside directors

Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Enhancement and Strengthening of Corporate Governance

List of Directors

(As of the end of June 2025)

Directors

Keisuke Nagai

Chairman of the Board Representative Director

Date of birth: February 11, 1957

Apr. 1981 Joined Shikoku Electric Power Company Jun. 2013 Senior Corporate Officer, General Planning

Division, Department Manager of Corporate

Planning Department

Jun. 2015 Managing Director, General Manager of General Planning Division

Jun. 2017 Director and Executive Vice President, General Manager of General Planning Division, in charge of IT/Communication

Apr. 2018 Director and Executive Vice President, General Manager of General Planning Division, in charge of Renewable Energy Dept., Supply/Demand Operation Dept., and Information Systems Dept.

Jun. 2019 Director and President

Jun. 2024 Chairman of the Board (incumbent)

No. of shares held: 37,144

Yoshihiro Miyamoto

Director and President Representative Director Date of birth: January 6, 1963

Apr. 1985 Joined Shikoku Electric Power Company Jun. 2019 Senior Corporate Officer, General Planning

Division, Department Manager of Corporate

Planning Department

Jun. 2021 Director and Senior Corporate Officer, General Manager of General Planning Division, in charge of Renewable Energy Dept. and Public Relations Dept.

Jun. 2024 Director and President (incumbent)

No. of shares held: 24,184

Hisashi Shirai

Director and Executive Vice President General Manager of Business Development

Division, in charge of Accounting & Finance Dept., Purchasing & Materials Dept., and Information Systems Dept., Representative Director

Date of birth: October 3, 1958

Apr. 1981 Joined Shikoku Electric Power Company Jun. 2016 Senior Corporate Officer, in charge of

Accounting & Finance Dept.

Jun. 2017 Managing Director, in charge of Accounting & Finance Dept. and Purchasing & Materials Dept.

Jun. 2019 Director and Senior Corporate Officer, General Manager of Business Development Division, in charge of Accounting & Finance Dept., Purchasing & Materials Dept., and Information Systems Dept.

Jun. 2022 Director and Executive Vice President, General Manager of Business Development Division, in charge of Accounting & Finance Dept., Purchasing & Materials Dept., and Information Systems Dept. (incumbent)

No. of shares held: 23,469

Noriyuki Kawanishi

Director and Executive Vice President Division Manager of Nuclear Power Division, in charge of Civil & Architectural Engineering Dept., Representative Director Date of birth: November 15, 1960

Apr. 1983 Joined Shikoku Electric Power Company Jun. 2022 Senior Corporate Officer, Deputy Division

Manager of Nuclear Power Division,

Department Manager of Nuclear Power Department

Jun. 2023 Director and Executive Vice President, Division Manager of Nuclear Power Division, in charge of Civil & Architectural Engineering Dept. (incumbent)

No. of shares held: 15,059

Seiji Miyazaki

Director and Senior Corporate Officer General Manager of General Planning Division, in charge of Renewable Energy Dept. and Public Relations Dept.

Date of birth: June 26, 1960

Apr. 1983 Joined Shikoku Electric Power Company Jun. 2019 Senior Corporate Officer, Deputy Division

Manager of Marketing & Customer Relations

Division

Jun. 2022 Director and Senior Corporate Officer, Division Manager of Marketing & Customer Relations Division

Jun. 2023 Director and Senior Corporate Officer, Division Manager of Marketing & Customer Relations Division, in charge of Tokyo Branch Office

Jun. 2024 Director and Senior Corporate Officer, General Manager of General Planning Division, in charge of Renewable Energy Dept. and Public Relations Dept. (incumbent)

Director of STNet, Incorporated (incumbent)

No. of shares held: 8,931

Kenzo Suginouchi

Director and Senior Corporate Officer

In charge of General Affairs Dept., Siting and Environment Dept., Employee Relations & Human Resources Dept., General Education & Training Center, and General Medical Services Center

Date of birth: October 5, 1961

Apr. 1984 Joined Shikoku Electric Power Company Jun. 2020 Senior Corporate Officer, in charge of

Employee Relations & Human Resources

Dept., General Education & Training Center, and General Medical Services Center

Jun. 2023 Director and Senior Corporate Officer, in charge of General Affairs Dept., Siting and Environment Dept., Employee Relations & Human Resources Dept., General Education & Training Center, and General Medical Services Center (incumbent)

Director of Yonden Business Company, Incorporated (incumbent)

Director of Yonden Engineering Company, Incorporated (incumbent)

No. of shares held: 7,180

Shinji Obayashi

Director and Senior Corporate Officer Division Manager of Marketing & Customer Relations Division, in charge of Tokyo Branch Office

Date of birth: April 8, 1960

Apr. 1984 Joined Shikoku Electric Power Company Jun. 2022 Senior Corporate Officer, Deputy Division

Manager of Marketing & Customer Relations

Division

Jun. 2024 Director and Senior Corporate Officer, Division Manager of Marketing & Customer Relations Division, in charge of Tokyo Branch Office (incumbent)

Director of SHIKOKU INSTRUMENTATION CO.,

LTD. (incumbent)

No. of shares held: 7,969

Hideyoshi Ishida

Director and Senior Corporate Officer Division Manager of Thermal Power Division Date of birth: February 14, 1964

Apr. 1989 Joined Shikoku Electric Power Company Jun. 2023 Senior Corporate Officer, Deputy Division

Manager of Thermal Power Division, in

charge of Thermal Power Department

Jun. 2024 Director and Senior Corporate Officer, Division Manager of Thermal Power Division (incumbent)

Director of Sakaide LNG Company, Incorporated (incumbent)

No. of shares held: 7,053

Directors and Audit & Supervisory Committee Members

Kazuhiko Shioume

Director, Audit and Supervisory Committee Member, Chairman of the Audit and Supervisory Committee

Date of birth: June 21, 1961

Apr. 1985 Joined Shikoku Electric Power Company Jun. 2022 Audit and Supervisory Officer

Corporate Auditor of Yonden Business

Company, Incorporated (incumbent) Corporate Auditor of SHIKOKU INSTRUMENTATION CO., LTD. (incumbent)

Jun. 2025 Director and Audit & Supervisory Committee Member of Shikoku Electric Power Company, Inc., Chairman of the Audit and Supervisory Committee (incumbent) Corporate Auditor of Shikoku Electric

Power Transmission & Distribution Co., Incorporated (incumbent)

Director and Audit & Supervisory Committee Member of YONDENKO CORPORATION

(incumbent)

No. of shares held: 11,596

Ryohei Kagawa

Director, Audit and Supervisory Committee Member (Outside Director)

Date of birth: November 21, 1958

Apr. 2016 Director and Senior Managing Executive Officer of The Hyakujushi Bank, Ltd.

Apr. 2019 Director, Senior Managing Executive Officer, and CCO

Jun. 2019 Director and Audit & Supervisory Committee Member of Shikoku Electric Power Company, Inc. (incumbent)

Apr. 2021 Director, Vice President and CCO of The Hyakujushi Bank, Ltd.

Mar. 2024 Director of The Hyakujushi Bank, Ltd. (retired in June 2024)

Jun. 2024 Director and President of Nihonbashi Fudosan (incumbent)

No. of shares held: 7,831

Fujiko Takahata

Director, Audit and Supervisory Committee Member (Outside Director)

Date of birth: September 20, 1955

Sep. 2007 Director of Tokiwa Co. Ltd.

Sep. 2015 Director and President of Tokiwa Co. Ltd. (incumbent)

Jun. 2020 Director and Audit & Supervisory Committee Member of Shikoku Electric Power Company, Inc. (incumbent)

No. of shares held: 6,546

Iwao Otsuka

Director, Audit and Supervisory Committee Member (Outside Director)

Date of birth: April 7, 1952

Jun. 2011 Director of The Iyo Bank, Ltd.

Jun. 2012 Director and President of The Iyo Bank. Ltd. Jun. 2019 Corporate Auditor of Shikoku Railway

Company (incumbent)

Apr. 2020 Director and Chairman of The Iyo Bank, Ltd.

Jun. 2021 Director and Audit & Supervisory Committee Member of Shikoku Electric Power Company, Inc. (incumbent)

Oct. 2022 Director and Chairman of Iyogin Holdings, Inc. (Retired in June 2025)

Jun. 2025 Special Advisor of The Iyo Bank, Ltd. (incumbent)

No. of shares held: 5,008

Shoichi Nishiyama

Director, Audit and Supervisory Committee Member (Outside Director)

Date of birth: January 6, 1955

Jun. 1994 Director of Ujiden Chemical Industry Co., Ltd. Jan. 1999 Director and President of Ujiden Chemical

Industry Co., Ltd.

Jun. 2021 Director and Audit & Supervisory Committee Member of Shikoku Electric Power Company, Inc. (incumbent)

Feb. 2023 Director and Chairman of Ujiden Chemical Industry Co., Ltd. (incumbent)

No. of shares held: 5,988

Yachiyo Izutani

Director, Audit and Supervisory Committee Member (Outside Director)

Date of birth: September 9, 1958

Jun. 2011 Head of Nara Broadcasting Station, Japan Broadcasting Corporation (NHK)

Jun. 2013 Head of Work Life Balance Promotion, Human Resources Department, NHK

Jun. 2015 Head of Matsuyama Broadcasting Station, NHK

Jun. 2017 Director of Announcers' Office, NHK Jun. 2018 Director and Division Manager of Course

Promotion Division of NHK Culture Center, Inc.

Jun. 2019 Director and President of NHK Culture Center, Inc. (retired in April 2021)

Jun. 2021 Director and Audit & Supervisory Committee Member of Shikoku Electric Power Company, Inc. (incumbent)

No. of shares held: 2,502

Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Enhancement and Strengthening of Corporate Governance

1. Audit and Supervisory Committee [4] Compensation Committee

   • The Audit and Supervisory Committee consists of six directors who serve as committee members, including five outside directors. Based on the audit policies and plans established by the committee, Audit and Supervisory Committee members express opinions and provide advice on management from an independent and neutral standpoint through attendance at important meetings such as the Board of Directors, regular exchanges of opinions with the Representative Director, participation in on-site inspections,

     and by reviewing and investigating important documents, they conduct audits of the execution of duties by executive directors.

     Composition

     • Chair: Kazuhiko Shioume

     • A total of six members: one internal director (Chairperson of the Audit and Supervisory Committee, full-time) and five outside directors

       • The Compensation Committee consists of six directors, including five outside directors, and deliberates from an objective and neutral position on matters such as the ideal remuneration system that contributes to improving incentives for directors and appropriate remuneration levels.

       • In fiscal 2024, the committee met twice, with particular focus on deliberating matters such as the structure of performance-linked cash remuneration, taking into account recent performance and the medium- to long-term business environment.

         Composition

       • Chair: Ryohei Kagawa (Independent Outside Director)

         from the Compensation Committee.

         In 2023, we introduced performance-linked cash remuneration, and for fiscal 2024, in addition to using consolidated ordinary profit and dividend per share-management targets set forth in the Shikoku Electric Power Group Medium-Term Management Plan 2025-as benchmark indicators, we also determine payment amounts by taking into account indicators related to ESG initiatives, such as retail CO2 emissions and our greenhouse gas emissions (direct emissions from our use of fuel for electric power generation, etc.).

         Directors' compensation

2. Personnel Committee

   • The Personnel Committee consists of seven directors,

     Composition

   • A total of six members: five outside directors and one internal director (officer in charge of General Affairs Dept. and Employee Relations & Human Resources Dept.)

Directors (excluding Audit & Supervisory Committee members)

Stock compensation

including five outside directors, and deliberates on matters such as the appointment and dismissal of the Representative Director, directors, and executive officers. It also considers methods for improving the governance system.

• Chair: Fujiko Takahata (Independent Outside Director)

• A total of seven members: five outside directors and two internal directors (Chairperson and President)

  Directors' remuneration

  Remuneration for directors is determined so that it appropriately reflects the value of their responsibilities in

  * The weight of performance-linked cash remuneration is set at approximately 20% for both

  the Chairman of the Board and the Director & President, and 10% for other directors, in accordance with the level of management responsibility for performance.

  Monthly compensation of directors who are Audit & Supervisory Committee members

  Monthly compensation 100%

achieving the Company's fundamental mission and the sustainable enhancement of corporate value, taking into consideration Company performance, the nature and execution of their duties, and remuneration levels of other companies (mainly at listed companies).

The specific levels of remuneration are determined by the Board of Directors, within the limits set by resolutions at the

Compensation amounts (FY2024)

(millions of yen)

Message from the Personnel Committee Chairperson

In our Personnel Committee, outside directors make up the majority of members, and the chairperson is selected by mutual vote from the outside directors. Currently, I, an outside director, serve as chairperson.

To date, the committee has carefully deliberated on the appointment of the Representative Director, directors, and executive officers. In our Company, all outside directors also serve as Audit and Supervisory Committee members, so we maintain close communication with executive employees who are future candidates for director positions, especially in venues such as the Audit and Supervisory Committee, and I feel that our understanding of each employee's personal characteristics, execution ability, and leadership is reflected in the committee's deliberations.

This fiscal year, as a new medium-term management plan has been formulated, I believe it is necessary to once again discuss the skills that the Board of Directors should possess

Message from the Compensation Committee Chairperson

Our core business, the Electric Power Business, is characterized by large fluctuations in performance due to factors such as fuel price volatility and the long period required from business planning to actual results. Therefore, although we introduced share-based remuneration in 2019, the proportion of short-term performance-linked remuneration has been kept lower than in other industries in our executive remuneration system.

Amid these circumstances, after deliberation by the Compensation Committee, which is mainly composed of outside directors, we introduced short-term performance-linked cash remuneration in 2023. In the detailed system design, we incorporated not only performance KPIs that contribute to the enhancement of the company's economic value, but also ESG indicators related to social value.

As a result, I believe that the efforts and responsibilities of each director are now directly linked to corporate value, and the various remuneration ratios have been revised to

Fujiko Takahata

(Outside Director)

based on the new policy. As chairperson, I intend to lead substantial discussions from an independent and objective standpoint and contribute to the enhancement and strengthening of corporate governance.

Ryohei Kagawa

(Outside Director)

achieve a better balance. Going forward, we will continue to review the system to ensure that it serves as an appropriate incentive linked to the management strategy of the new Medium-Term Management Plan starting in fiscal 2026 and for realizing the strategy.

General Meeting of Shareholders, based on recommendations

* Including the total amount of remuneration paid to directors who retired at the General

Total amount by type of compensation, etc.

Executive classification

Number of eligible directors

9

1

5

Meeting of Shareholders held in June 2024 and the number of such directors.

‌Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Enhancement and Strengthening of Corporate Governance

1. Board of Managing Directors Evaluation of the Effectiveness of the Board of Directors

   Board of Managing Directors consists of the Director and President and the executive officers who oversee headquarters and divisions, and, as a body that deliberates on matters to be submitted to the Board of Directors and important matters

2. Internal Audit Office

The Internal Audit Department is an organization under the direct control of the President, consisting of 12 members in charge of audits and nuclear power audits. The audit staff conducts internal audits independently of each department regarding the appropriateness and effectiveness of operations of our Company and its affiliates, while the nuclear power audit staff conducts internal audits of quality assurance activities

related to business execution, is held in principle once a week. The Chairperson of the Board and the Chairperson of the Audit and Supervisory Committee also attend.

carried out by nuclear power-related departments.

The results of internal audits are regularly reported directly to all directors through Board of Managing Directors and the Audit and Supervisory Committee, and necessary improvements are encouraged in relevant departments, with follow-up on the status of improvements.

In order to evaluate and analyze the composition, governance, and operation of the Board of Directors, we conduct an annual survey of all directors regarding the effectiveness of the Board of Directors, and implement improvement measures based on the opinions submitted.

Regarding our efforts to improve the effectiveness of the Board of Directors, we regularly receive independent and objective reviews from third-party attorneys with deep

Main contents of the survey

knowledge of our business, and obtain feedback on the selection of survey items, evaluation results, and future responses based on those results.

Based on the evaluation results from the 2024 survey, we have determined that the effectiveness of the Board of Directors is being appropriately ensured. However, we will continue our ongoing efforts to further enhance the effectiveness and governance of the Board of Directors.

Skills matrix

• Regarding the explanation of materials at the Board of Directors meetings, explanations were provided with varying levels of detail, taking into account the status of prior explanations on the agenda items.

• To enhance the quality of discussions, officers in charge were asked to add their impressions and the status of deliberations in the Board of Managing Directors during explanations.

• By further summarizing the key points of explanations at Board meetings, even more time for deliberation should be secured.

• Lively discussions are being held through timely and appropriate information sharing, not limited to agenda items, and governance is functioning effectively.

• In addition to current initiatives, presenters should further enhance Board deliberations by focusing on key points for each agenda item and through other improvements.

Initiatives for enhancing effectiveness (FY2024 results)

Fiscal 2024 assessment

Initiatives for enhancing effectiveness (FY2025 policy)

Identified issues and response status

Director training

We provide opportunities for internal directors to acquire the knowledge and skills required of them, such as legal responsibilities of directors, DX of internal operations, training focused on promotion, and media training to improve their public relations capabilities.

For outside directors, we provide opportunities to

understand our business operations by offering explanations about our business and management issues at the time of appointment and other occasions, as well as site visits to our electric power generation facilities.

In addition, for all directors, we hold study sessions led by external experts, and strive to enhance opportunities for further development.

• Continuing from the previous year, we enhanced opportunities such as study sessions by external lecturers to deepen understanding of the business environment and management issues surrounding our Company, and held discussions in preparation for the next Medium-Term Management Plan.

• It was meaningful that directors had multiple opportunities for broad discussions from the formulation stage of the Medium-Term Management Plan.

• Facility visits and informal discussions with on-site employees are recognized as extremely important opportunities to deepen understanding of the business. It is desirable to continue these activities and also

provide opportunities to enhance knowledge of new businesses and challenge fields.

• We will hold study sessions on themes that contribute to directors' execution of duties and on our Company's growth areas, as well as enhance opportunities for facility visits and similar activities.

Regarding the composition of the Board of Directors, we currently share the recognition that the balance of size, diversity, and the necessary knowledge, experience, and abilities is being maintained. However, based on the management policies set forth in the new Medium-Term

Management Plan 2030, we will redefine the skills required for the entire Board and consider further enhancement of the governance system, keeping in mind issues such as increasing the ratio of female officers.

Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Enhancement and Strengthening of Corporate Governance

Small meeting with an outside director (Held December 2024)

WEB

Briefing materials (in Japanese only)

Reduction of Cross-Shareholdings

https://www.yonden.co.jp/corporate/ir/library/account.html

We are presenting some of the Q&As from a small meeting with major institutional shareholders and analysts, attended by Outside Director Izutani, where opinions were exchanged mainly on human resource strategy.

Yachiyo Izutani

The shares that we hold are limited to those of companies which contribute to the sustainable improvement of the Shikoku Electric Power Group's corporate value in terms of the stable and efficient operation of the electric power business, etc.

Each year, taking into account the importance for business operations and capital costs, the rationality of our holdings is reported to the Board of Directors, and shares that are deemed

stocks decreased by 10 compared to the beginning of the Medium-Term Management Plan 2025.

Shareholdings (as of end of fiscal year)

Figures in parentheses represent the number of brands / amount recorded for listed shares from among those held.

Outside Director and Audit & Supervisory

Committee member

Former President of NHK CULTURE CENTER, Inc.

Osaka University Executive Director [at time of meeting]

Seiji Miyazaki

Director and Senior Corporate Officer General Manager of General Planning Division

less necessary are promptly sold. In fiscal 2024, the number of

Appropriate Internal Controls

Note: Of these, shares in Japan Nuclear Fuel Ltd. comprised 25.6 billion yen.

Q How do you evaluate the diversity of the Board of Directors? For example,

how do you view the need to incorporate new perspectives from outside in anticipation of new business environments, or from the standpoint of age, looking toward the future?

Izutani: Currently, there are two female outside directors, but regarding the ratio of women, I think it is time to consider increasing the ratio of female internal directors. However, the current situation within the Company is that the higher the age group, the higher the proportion of men.

Therefore, we are working to nurture and promote women from the bottom up, rather than suddenly increasing the number of female officers.

Also, as the population of Shikoku declines and management diversifies through overseas

Q This year, there was a change in president. What kind of discussions took

place in the Personnel Committee when selecting the new president?

Izutani: Outside directors serve as members of the Personnel Committee and discuss director appointments, and I feel that this time we were able to make a fully satisfactory personnel decision. What is functional in our system is that explanations of agenda items at the Audit and Supervisory Committee are always given by department heads or those in equivalent positions. Since outside directors also serve as Audit and Supervisory Committee members, these opportunities allow them to assess the abilities of department heads, who are future candidates for director, so having the same members for both outside directors and

Q I think that there may not be many women participating in explanatory

meetings, but what is the reality?

Izutani: I have persistently pointed out this issue since my first year as director. Initially, there were almost no women participating in such meetings, and I felt it was an issue, but now, with women serving as the head of the General Training Institute and the head of the DE&I Promotion Office, there are now more opportunities for female employees to provide input.

Universities that do not promote DE&I are not recognized internationally, so compared to general companies, the urgency of these efforts is different. As people who have experienced such environments join the Company in the future, we will no longer be chosen as a place of

Having recognized the importance of winning the trust of society at large, the Board of Directors passed a resolution setting out the System for Ensuring Appropriate Business, which is our basic policy on internal controls, so that we can conduct business activities that are legal, appropriate, and efficient. In accordance with this, we are working to foster a healthy corporate culture, clarify responsibilities and authorities, and establish a management system to respond to risks.

WEB

We regularly check and improve the operation of these systems, continuously promote understanding among directors and employees to ensure that internal controls function effectively and that highly sound business operations can be carried out.

Strengthening internal controls related to conduct control Following the February 2023 incident involving the unauthorized use of customer information managed by Shikoku Electric Power Transmission & Distribution Co., Inc., both companies have implemented measures to prevent recurrence. We have also rebuilt an objective and highly effective internal control system for conduct control, and are continuing our efforts to prevent recurrence and restore trust.

investments and other means, I feel that we are entering a phase where diverse directors with different perspectives are needed.

Regarding age diversity, the president is

getting younger, and candidates for

Audit and Supervisory Committee members is a significant advantage. In addition, with this personnel change, the average age of directors, such as the president, has decreased, and in a

rapidly changing business environment, it is

employment if we remain old-fashioned. When I recently conducted DE&I training at the Company, I explained what kind of environment current university students-potential employees-are in.

Miyazaki: I believe it is truly meaningful for

Initiatives for compliance (in Japanese only)

https://www.yonden.co.jp/corporate/compliance/index.html

management positions are also developing smoothly. As a regional company, I feel that we have assembled highly capable personnel, and I believe age diversity will also be achieved.

necessary to incorporate new values. In that sense, I believe the Company is achieving the necessary renewal.

Director Izutani, who has firsthand experience with such environments, to speak directly to employees.

Promotion of Risk Management

Our Group strives to ensure management stability and sustainability by formulating response plans based on the group management plan, which sets out the basic management policy each year, and by operating the PDCA cycle to identify and address external and internal risks and

The PDCA of risk management

Dialogue and Information Disclosure Through IR/SR Activities

opportunities in our business domains.

Recognition of risks and opportunities

Divisions, etc.

Monitoring of business execution risks and opportunities

Divisions, etc.

Evaluation and prioritization of risks and opportunities

Divisions, etc.

Discussion among management and reflection in management plans

Management level

Risks identified by each organization are evaluated on two

We place importance on reflecting IR and SR activities not merely as information dissemination, but as management decisions that contribute to the sustainable enhancement of corporate value through constructive dialogue with shareholders and investors. In fiscal 2024, we enhanced opportunities for dialogue by holding several company briefings by the president and small meetings with outside directors, as well as about 80 individual meetings conducted

by the IR/SR Secretariat.

The opinions received from the capital markets through such dialogues are shared with management and reflected in strategies to enhance corporate value, such as the Medium-Term Management Plan. Going forward, we will continue to actively engage in direct dialogue with shareholders and investors and strive for continuous updates to management and information dissemination through these interactions.

axes: impact and likelihood. Those that could have a significant effect on business operations are designated as "management risks" and are reported to management. Furthermore, for company-wide risks, expert committees are established as needed, and appropriate measures are taken based on comprehensive assessments.

WEB

Risks related to business activities ▶Annual Securities Report (in Japanese only)

https://www.yonden.co.jp/assets/pdf/corporate/ir/library/securities_report/yuhofy2024.pdf

Becoming a Force that Lights Up the Future Business Management that Increases Sustainability

Shikoku Electric Power Group Value Creation,

Lighting Up the Region and the Future

Becoming a Force that Lights Up the Region Value Creation through

Business Activities

Becoming a Force that Lights Up the Future Business Management that

Increases Sustainability

Financial/Corporate Information

Enhancement and Strengthening of Corporate Governance

Promoting Compliance

We have established the "Shikoku Electric Power Compliance Guidelines," which establish specific rules to be observed by officers and employees, including legal compliance and respect for social norms as well as the building and maintenance of sound relationships with stakeholders. We make efforts to raise awareness and promote implementation of these guidelines.

We have also established the Shikoku Electric Power Group Compliance Council, which combines the Compliance Promotion Committees of each Group company, through which we make thorough efforts to ensure compliance across the Group.

Implementation of ongoing compliance education Every year, we implement e-learning training for all employees, based on various potential work-related compliance issues. In fiscal 2024, 100% of employees undertook this training.

In addition, we regularly conduct training for personnel in charge of site offices to share actual case studies of compliance violations and raise awareness of laws and internal regulations related to operations. We also provide compliance training that takes advantage of the opportunities for training at different job grades.

Establishment of Compliance Consultation Office We have established a Compliance Consultation Office at the General Affairs Department and an outside law office as a contact point for consultations regarding conduct that violate

laws or corporate ethics. In addition, an internal contact point has been established by the Audit & Supervisory Committee to receive reports on violations of laws, regulations and corporate ethics directly involving Directors.

(For the number of consultations with the Compliance Consultation Office, see P.79)

Protection of personal information

We disclose the purposes of personal information use in accordance with our "Basic Policy on Personal Information Protection," which outlines specific matters to be complied with by officers and employees. Led by the Personal Information Protection Promotion Committee, we make thorough efforts to implement the proper management of personal information, including that of customers, through the establishment of internal regulations, conducting employee training, and awareness-raising activities.

Protection of intellectual property

Our Group owns and utilizes patents and other intellectual property rights in fields such as energy, information and communications, electronics, construction engineering, and agriculture. In addition, in order to avoid infringing upon the intellectual property rights of third parties in our business activities, we provide training on legal systems and cases of infringement concerning patents, etc. mainly for staff in charge of intellectual property, including at Group companies.

Key risks and opportunities

[ specifies how we will respond]

Ensuring Information Security

As part of our information security efforts, our Group has established the "Yonden Group Information System Security Guidelines" and put in place a group-wide management framework headed by the executive officer in charge of the Information Systems Department.

Based on this management framework, we have continuously improved physical, technical, organizational, and personnel measures, resulting in zero major security incidents in fiscal 2024.

Framework for security management within the Group

PDCA

Chief Information Security Officer

(Executive Officer in charge of the Information Systems Department)

Report &

Information Security Promotion Council

SIRT

Security information gathering Crisis

collaboration response

PDCA

Group companies

Information Security Officer

PDCA

Shikoku Electric Power Transmission & Distribution Co., Inc.

Information Security Officer

PDCA

Divisions & departments

Information Security Officer

PDCA