Shikoku Electric Power Incorporated : Annual Report - (annual e 2025a4)

Shikoku Electric Power Group

INTEGRATED REPORT 2025

Corporate message

Drive Happiness Forward

Profit expansion

Ordinary profit:

65.0 billion yen or more

Business strategy

Pursuit of both profitability improvement and sales expansion in our core business P.37

Improvement of profitability

ROE: 8% or more

Building of an optimal capital structure

Shareholders’ equity ratio: Secure a minimum of 25%

Accelerate growth in expansion area

P.44

Development of new pillars of growth in challenging fields P.43

Improvement of PBR

Expansion of future profit opportunities

Optimize business portfolio by selecting priority areas and allocating resources to enhance earning power

Optimal allocation of management resources / Financial strategy

Management utilizing ROIC P.23

ROIC: 3.5% or more

Sustainable growth

Identifying required assets and risk level, and controlling funding costs by maintaining ratings P.8

Strengthening of the management foundation

Shareholder return policy based on stable dividend implementation P.8

Aim for stable dividends with DOE at the 2.5% level / Strategically conduct share buybacks

Implementation of business management to enhance sustainability

(reduction of business risks)

ESG strategy

Initiatives toward carbon neutrality

P.47

Suppression of cost of shareholders’ equity

Promotion of human resources strategy

P.56

Enhancement of engagement with shareholders and investors

Continuous improvement in governance

P.62

CONTENTS

Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

2 Shikoku Electric Power Group Vision

4 Top Interview

10 About the Shikoku Electric Power Group

14 Group Strengths in the Value Chain

16 History of Shikoku Electric Power Group

18 Sustainable Value Creation Process

20 Review of Shikoku Electric Power Group Medium-Term Management Plan 2025 and Progress of Management Targets

22 New Medium-Term Management Plan

Shikoku Electric Power Group Medium-Term Management Plan 2030

24 Stakeholder Engagement

26 Initiatives that Increase Sustainability

28 Carbon Neutral Challenge 2050 (Roadmap)

30 Shikoku Electric Power Group Human Resources Strategy

32 Promotion of Digital Transformation (DX)

34 Shikoku Electric Power Group by the Numbers

Becoming a Force that Lights Up the Region Value Creation through Business Activities

37 Electric Power Business

37 Power Generation Business

40 Electricity Retail Business

41 Power Transmission & Distribution Business

42 Construction & Engineering Business

43 Decarbonized Power Supply Business and Energy Solutions Services Business

44 International Business

45 IT/Communication Business

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

47 Response to Environmental Issues

56 Practice of Human Capital Management

60 Coexisting Activities in Harmony with Communities

62 Enhancement and Strengthening of Corporate Governance

Financial/Corporate Information

75 Main Data on Electric Power Business

76 11-Year Financial Summary

78 Main ESG Data

80 SASB Standards INDEX

82 Business Performance and Financial Position (Consolidated)

1. Corporate Data and Stock Information

2. Attestation of Validity

• Shikoku Electric Power Company Website

  Further detailed content that was not published in this report is available on our website.

  Shikoku Electric Power Outline

  https://www.yonden.co.jp/english/profile/

  Investor Relations

  https://www.yonden.co.jp/english/ir/

  Initiatives for Sustainability (in Japanese only)

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

  Carbon Neutral Challenge (in Japanese only)

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

  Corporate Governance (in Japanese only)

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

  Shikoku Electric Power Group Information (in Japanese only)

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

• Reporting Period

  FY2024 (April 1, 2024-March 31, 2025)

  However, when it is appropriate to show past historical data and recent cases, we report on matters that fall outside this period.

• Scope of Reporting

  This report covers Shikoku Electric Power Co., Inc. (our Company) and its subsidiaries and affiliated companies.

• Publication Date

  Japanese version: Published November 2025 English version: Published December 2025

• Contact Information

  Corporate Planning Group, Corporate Planning Dept., General Planning Division (Shikoku Electric Power Co., Inc.) 2-5, Marunouchi, Takamatsu, Kagawa 760-8573, Japan

  TEL: +81-87-821-5061 (Receptionist) Fax: +81-87-825-3018

  E-Mail: [email protected]

• Caution Regarding Business Forecasts and Forward-Looking Statements

Forecasts included in this document are forward-looking statements based on data available at the time of their release and assumptions that are deemed reasonable. Actual results may differ substantially due to a number of factors.

Shikoku Electric Power Group INTEGRATED REPORT 2025 1

‌Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

Shikoku Electric Power Group Vision

With our corporate message “Drive Happiness Forward,” we aim to create the future with energy and digital technology, and as the unified Shikoku Electric Power Group, we will contribute to regional development and comfortable, safe, and secure living.

Our Vision

Data Center/Cloud

International Business

Group Core Business (Energy, IT/Communication)

Our Purpose

Contributing to regional development and secure life

Action Plan for Realizing Our Vision

2 Shikoku Electric Power Group INTEGRATED REPORT 2025

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

Energy and Note: The term “digital” conveys our intent to: expand business in the IT/communication business by capturing increased data

traffic, create new business opportunities by strengthening cooperation between power supply and IT/communication infrastructure, and pursue business transformation through DX.

Energy Solutions Services

Decarbonized Power Supply

Corporate Message

a comfortable, safe, and

Shikoku Electric Power Group INTEGRATED REPORT 2025 3

‌Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

Top Interview

Yoshihiro Miyamoto

Director and President

4 Shikoku Electric Power Group INTEGRATED REPORT 2025

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

Question

It has been one year since you assumed the position of president in June 2024. Has the view you see changed?

Before becoming president, I was the General Manager of the Corporate Planning Office, so in terms of overseeing the Company’s management as a whole, not much has changed. However, now that the results come back to me first, I feel the weight of responsibility much more strongly.

I studied electrical engineering at university and have been involved in power system operations at the Company for a long time, so I have knowledge and experience regarding supply and demand operations. However, in recent years, I feel that the way of thinking about supply and demand operations has changed significantly. In the past, the main focus of business operations was to establish a thorough and stable power supply system to ensure there would never be a shortage of electricity. However, with the opening of multiple electric power trading markets and the advancement of non-discriminatory transactions both domestically and internationally, I believe that, from now on, the importance of economic operation—optimizing profits through the use of markets and creative bilateral transactions—will increase even further. With these prerequisites in mind, we have been engaging in repeated discussions since before I became president and have been working on formulating the new Shikoku Electric Power Group Medium-Term Management Plan 2030.

Question

Please tell us about the concept of the Shikoku Electric Power Group Medium-Term Management Plan 2030 (the new Medium-Term Plan 2030).

Behind the new Medium-Term Plan 2030 is the potential for electricity demand to increase in the future due to the digitalization of society.

An increase in demand means that electricity will sell. At the same time, with the growing call for decarbonization of society and the accompanying progress of electrification, we expect

that the need for decarbonized electricity will also increase. The policy of the New Medium-Term Plan 2030 is to view these two major trends—the shift toward increased electricity demand due to digitalization and the progress of decarbonization—as new revenue opportunities and to respond accordingly to drive the growth of our Group.

While the founding business of the Shikoku Electric Power Group is the electric power business, our second-largest core business is the IT/communication business. The fact that the entire industry is on a growth trajectory due to the progress of digitalization presents a major opportunity. The AI/DX field overlaps significantly with the electric power business, and during the period of the New Medium-Term Plan 2030, we hope to provide new value that leverages our strengths.

This time, we have also focused on sharing the aspirations embedded in the New Medium-Term Plan 2030 with all employees, and redefining our vision was a key point. So that everyone can speak with one voice, we have maintained the importance of our purpose “Together with the Community” as before, while adopting “energy” and “digitalization” as our keywords. Having operated our business for over 70 years, mainly in Shikoku, we believe that the trust we have built up so far can serve as the foundation for our next stage of growth.

Question

It is said that the management targets of the current Shikoku Electric Power Group Medium-Term Management Plan 2025 (the current Medium-Term Plan 2025) are expected to be mostly achieved. What do you think are the reasons for this success?

The current Medium-Term Plan 2025 started under severe conditions, facing a tight electricity supply-demand balance and soaring fuel prices. However, by overcoming each challenge one by one, we have recovered our performance and now have a certain outlook for achieving our management targets. One reason we were able to make a comeback is that starting from a tough situation heightened our sense of crisis,

Shikoku Electric Power Group INTEGRATED REPORT 2025 5

Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

Top Interview

and the entire Group was able to share and tackle the issue of what and how to rebuild.

In addition, the concept of the current Medium-Term Plan 2025 is “positioning the electric power business and businesses other than electricity as the two wheels of value creation, with each business securing half of the target profit.” Under this policy, businesses such as the IT/communication business have steadily expanded, and their role in supporting the Company when the electric power business struggled also contributed to achieving our targets. Our Group companies originally developed by externalizing businesses that support the electric power business, but after facing difficult situations such as the suspension of nuclear power plants following the Great East Japan Earthquake, each Group company recognized the need to build a system independent of the electric power business. By leveraging the technical capabilities we have cultivated, we have spent about 10 years establishing a system that can generate profits even in businesses other than electricity. Naturally, we have provided support from the parent company, such as allocating management resources like personnel and funds, but the most effective factor was the change in mindset. Led by the management of our Group

companies, we fostered the mindset that “it is not enough to just rely on the work assigned by our parent company; from now on, we must do things ourselves,” and employees shared and acted on this, which I believe was the key to our growth.

Question

While the Group has achieved growth in businesses other than electricity so far, what kind of growth are you aiming for in the new Medium-Term Plan 2030?

As I mentioned earlier, in the new Medium-Term Plan 2030, we see the progress of decarbonization and digitalization as opportunities,

• Positioning the energy business, including electricity, and the IT/communication business as the “Group Core Business” we aim to achieve both improved profitability and business expansion,

• Focusing on our “Expansion Area” such as the international business as key points for further growth,

• Positioning decarbonized power supply and energy solutions services as a “Challenge Area” to nurture them into new pillars of business.

  Focus as a growth point for the Group

  • Aggressive investment of management resources

  • Early business expansion by leveraging partnerships

    Overseas energy-related

    Other existing businesses

    • Construction & engineering

    • Energy services

    • Manufacturing, trading & research

    • Regional growth & revitalization

    Electric power business

    • Power generation

    • Electricity retail

    • Power transmission & distribution

    Non-electric power businesses

    • IT/communication

    • Energy

    • Construction & engineering

    • Manufacturing, trading & research

    • Regional growth revitalization

      Electric power business

    • Power generation

    • Electricity retail

    • Power transmission & distribution

    Non-electric power businesses

    • International business

    Medium-Term Management Plan 2025

Decarbonization & energy solutions services

• Decarbonized power supply (renewable energy PPA, etc.)

• Energy solutions services

Expansion

• International business

  IT/communication

• Data center

• Cloud

• Existing IT/communication

  Core business

  Continuation as the foundation of Group businesses

  • Achievement of both improved profitability and expansion of sales scale

  • Efficiency and renewal measures to realize sustainable business operations

    Cultivation of new pillars of growth for the Group

  • Gain of business experience

    Challenge

  • Determination of the right timing for the full-scale investment of management resources

6 Shikoku Electric Power Group INTEGRATED REPORT 2025

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

The trends of decarbonization and digitalization are major business opportunities for our Group, and we will maximize the strengths we have cultivated to drive our business forward.

In particular, regarding the electric power business, which is at the center of the energy business, we aim to expand both retail and wholesale electricity sales, based on the outlook that electricity demand will increase nationwide in Japan. Our Company has originally had strengths in wholesale electricity sales, backed by competitive supply capacity, and we believe that expanding our sales scale by leveraging this is fully achievable. We will also continue to strengthen our retail electricity sales, including outside of Shikoku, to achieve further expansion. In addition, for the challenge areas such as sales of decarbonized electricity and energy solutions services, we aim to shift from their previous positioning as customer services to monetization, nurturing them into future pillars of revenue.

Question

What are your thoughts on the energy transition toward decarbonization?

Achieving carbon neutrality is an extremely important issue for us as a responsible energy supplier. Our Group has already set CO2 reduction targets for fiscal 2030 and has been taking concrete actions toward them. In formulating the new

Medium-Term Plan 2030, we have further deepened these targets and set new goals for fiscal 2035.

The new targets are to reduce emissions by 50% in both the retail sector*1 and the electric power generation sector*2 by fiscal 2030 compared to fiscal 2013, and by 60% by fiscal 2035. In the electric power generation sector, we will maximize the use of the Ikata Power Station Unit No. 3 by continuing its safe and stable operation, expand the development of renewable energy sources, and optimize the operation of thermal power sources, all to reduce emissions. In the retail sector as well, we aim to achieve the fiscal 2030 target by procuring electricity with lower emission factors and through other measures.

In order to achieve the 2050 target, it is also important to make long-term investments in power sources in parallel. Currently, to achieve reductions from fiscal 2031 onward, we are advancing plans to construct high-efficiency LNG power plant at Sakaide, which has relatively low CO2 emissions and can accommodate future hydrogen introduction, aiming for sustained reductions.

*1 CO2 emissions from retail electricity sales calculated based on the “Act on Promotion of Global Warming Countermeasures”

*2 Direct emissions resulting from the use of fuel in our electric power generation

Shikoku Electric Power Group INTEGRATED REPORT 2025 7

‌Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

Top Interview

Question

In the new Medium-Term Management Plan 2030, the Group has set ROE and ROIC as management targets, and raised the ordinary profit target to at least 65 billion yen—a high hurdle, more than 1.5 times the current Medium-Term Management Plan 2025 target of 40 billion yen. What are the thoughts behind setting these targets?

Until now, our Group has focused on improving profitability by setting ROA as a management target, while also disclosing ROE as a reference indicator showing returns on shareholders’ equity. We have positioned an ROE of at least 8% as the core management target, and added ROIC as a new target to strengthen the earning power of invested capital during a phase of expanding strategic investments.

The ROE target can be achieved by reducing shareholders’ equity, but excessive reduction is inappropriate as it undermines financial soundness. Alongside achieving the ordinary profit target of at least 65 billion yen, we aim for an optimal capital structure under the goal of “securing a minimum shareholders’ equity ratio of 25%, and then gradually increasing it toward around 30%,” striving for achievement from both the numerator and denominator perspectives.

Regarding the ordinary profit target of at least 65 billion yen, we set this level based on the outlook for shareholders’ equity and the judgment that such growth is essential to continuously maintain the profitability expected by the stock market. As for the cash target resulting from this, we have set cumulative cash flows from operating activities of at least 550 billion yen over five years. We recognize that profit growth of more than 1.5 times in five years is not easy, but we will achieve this by concentrating management resources on businesses with growth potential.

Question

The shareholder returns target has also been renewed. What kind of discussions took place?

We have always set stable dividends as the basic policy for shareholder returns, and this policy remains unchanged in the new Medium-Term Management Plan 2030. However, we felt that simply stating “stable dividends” as the policy lacked a quantitative explanation. Therefore, in setting the new target, we sought opinions through dialogue with shareholders and investors, and thoroughly discussed internally which indicators would be appropriate. If we could show that the earnings of the electric power business are growing steadily, total return

ratio or payout ratio would be good indicators. However, in recent years, external factors such as system reforms of the electric power business and market environments have caused large fluctuations in earnings. To clearly demonstrate our stable dividend policy, we concluded that DOE would be appropriate and adopted it as a management target. Of the management targets, those related to ROE and shareholder returns are aimed at continuous achievement throughout the period of the new Medium-Term Management Plan 2030.

In our case, many shareholders hold our stock in support of the Shikoku region or have held it for a long time. Dividend predictability is an important point for shareholders to continue holding our stock. By presenting a dividend target based on DOE, we hope to provide reassurance that dividends will not easily decrease even if performance temporarily fluctuates, and that dividend increases can be expected in the future.

In addition, during the period of the new Medium-Term Management Plan 2030, we also plan to strategically implement share buybacks for retirement. By appropriately timing investments and considering stock price levels, we will strive for further growth in future EPS (earnings per share) and meet the expectations of our shareholders.

Question

Alongside the new Medium-Term Management Plan 2030, you have also formulated the Shikoku Electric Power Group human resources strategy.

As mentioned earlier, the growth of Group companies has been driven by a shift in employee mindset. Management at each Group company has instilled a mindset of breaking away from conventional thinking and pioneering business on their own, and employees have responded by making their own efforts. I believe that this approach, combining support and independence, has greatly contributed to the growth of Group companies. After all, the greatest driving force for our Group’s continued growth is human resources. With this in mind, we have positioned maximizing human capital value as a key issue and newly formulated the Shikoku Electric Power Group human resources strategy.

Since becoming president, I have increased opportunities to visit worksites and engage in direct dialogue with employees. When I was young, I honestly didn’t think much about the future, but my impression is that many young employees today seriously think about what kind of future they can realize at the Company. If the Company does not meet these expectations, it

8 Shikoku Electric Power Group INTEGRATED REPORT 2025

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

will not only lead to turnover and decreased motivation, but also hinder the growth of the Group.

Therefore, we have defined the actions expected from employees as “CREDO,” and the Company’s commitment to support those actions as “PROMISE,” establishing a two-way commitment between the Company and employees. The aim is to foster growth and sustainable value creation by encouraging dialogue between both sides and bringing their ideals closer together, thereby generating a virtuous cycle that benefits customers and shareholders alike.

Traditionally, electric power companies have had the absolute mission of “stable supply,” and have required personnel who can reliably plan and execute in order to maintain it. Such personnel will of course continue to be necessary, but as we endeavor to enter new fields, we also need people who can think outside the box and come up with original ideas. I truly believe that it’s not enough to have just similar people. To leverage diversity, it is essential to strengthen organizational management capabilities. This time, we have focused especially on developing the environment for human resource management, including support for managers and improvement of evaluation systems. Going forward, I believe the key will be how we actually operate these systems.

Regarding diversity, while the ratio of female managers is not yet sufficiently high, nearly half of the current younger office employees are women, and we expect the ratio of female managers to increase over the next ten years. We continue to focus on creating an environment where everyone, regardless of gender, can demonstrate their abilities. As one example, this fiscal year we introduced a new parental leave support bonus system, which provides a bonus to employees in departments where someone is taking parental leave, so that employees can take childcare leave without hesitation.

Question

Finally, please tell us about the ideal vision you have for the Company as a business rooted in the local community.

What I want to achieve during my tenure as president is to create the conditions so that employees find joy in having worked for the Shikoku Electric Power Group. Employees work with pride, and their achievements contribute to the safety and prosperity of the community, while also meeting the expectations of our shareholders and business partners. I believe that a corporate group where such a virtuous cycle of joy continues is the ideal we should pass on to the next generation.

Compared to other areas in Japan, the Shikoku region is experiencing a faster decline in population and aging, and is generally seen as facing a shrinking future. Even thirty years from now, electricity as a convenient product will likely remain, but for us to continue to be relevant, it is important to consider what new value we can provide by leveraging the technological capabilities we have developed around electricity. In addition, regarding the revitalization of Shikoku itself, including increasing tourism demand and the number of people interacting with the region, we would like to consider how we can contribute. To realize a future where local residents feel “happy using the services of the Shikoku Electric Power Group, as they can live comfortably, safely, and securely,” we will swiftly and powerfully implement the initiatives of our new 2030 Medium-Term Management Plan.

At the core is our Group’s purpose: “Together with the community.” Our Group will continue to contribute to the development of the region and aim for sustainable growth, so we ask for the continued understanding and support of all our stakeholders.

Dialogue between the president and young employees

Shikoku Electric Power Group INTEGRATED REPORT 2025 9

‌Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

About the Shikoku Electric Power Group

Our Group aims to contribute to the development of the region and to the comfortable, safe, and secure lives of customers by achieving further growth throughout the entire Group, leveraging the customer base, human resources, and technological capabilities cultivated through the energy business.

(billion yen)

1,000

Operating revenues

Capital investment (by segment)

Construction and engineering

0.1 billion yen

800

600

400

200

0

719.2

641.9

833.2 787.4 851.3

Energy

2.9 billion yen

IT/communication

6.9 billion yen

Transmission and

FY2024

83.2

billion yen

Others

3.4 billion yen

Electric power generation and sales

41.3 billion yen

2020

2021

2022

2023

2024 (FY)

distribution

* As a result of the application of the Accounting Standard for Revenue Recognition in fiscal 2021, consolidated sales decreased by 159.4 billion yen from the level before application of the standard

28.3 billion yen

*Before elimination of intersegment transactions

10 Shikoku Electric Power Group INTEGRATED REPORT 2025

Ordinary profit

IT/communication

848

(billion yen)

100

91.6

80.0

80

60

40

20

5.1

0

-20

-12.1

-22.5

-40

2020 2021 2022 2023 2024 (FY)

Assets (by segment)

Construction and engineering

Energy 61.4 billion yen

111.8 billion yen Others

IT/communication 62.3 billion yen

68.9 billion yen

End of FY2024

2.18

trillion yen

Transmission and distribution

515.0 billion yen

*Before elimination of intersegment transactions

Electric power generation and sales

1.36 trillion yen

Number of employees

Others

1,369

Construction and engineering

1,383

Electric power generation and sales

2,078

End of FY2024

7,962

persons

Energy

280

Transmission and distribution

2,004

-2.0

15

10

5.3 5.9

5

0.9

-0.4

0

0.8

-1.0

-5

ROA* (Return on Assets) / ROE (Return on Equity)

-10

2020

2021

ROE

-7.5

2022 2023 2024 (FY)

ROA

* ROA is calculated as: Business profit (ordinary profit + interest expense)/Average total

assets (average for period start/end)

17.1

18.4

(%)

20

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

Core

Core

While owning and operating power sources of a scale essential for stable supply in the Shikoku area, with nuclear power as the core baseload, we will steadily advance low-carbon and decarbonized power sources and strive to achieve a well-balanced power supply mix.

We offer a variety of rate plans to meet customer needs, as well as plans and services that promote electrification and respond to decarbonization needs. In addition, by leveraging our strong brand power in the Shikoku region and our many points of contact with regional society, we are building good relationships with customers.

Core

Core

Utilizing our expertise in construction and engineering cultivated through electric power-related projects, we are receiving orders nationwide for the construction and operation of renewable energy-related facilities, as well as equipment work for government agencies and private companies.

To stably deliver electricity to customers, we are working to efficiently develop and maintain facilities and to strengthen resilience against natural disasters. We aim to modernize our facilities in preparation for the large-scale introduction of renewable energy in the future.

Expansion

Core/ Expansion

Leveraging the synergies with the electric power business and our strengths in technology and human resources spanning communications, we are developing businesses such as optical communication information services and data center and cloud services.

Utilizing the knowledge and know-how accumulated in the power generation business and other areas, we are developing international energy businesses centered on IPP projects in the Middle East, Asia, and North America.

Challenge

In addition to providing comprehensive services that contribute to energy conservation and to the low-carbon transition and decarbonization of our customers’ energy facilities, we also offer energy solutions services.

Shikoku Electric Power Group INTEGRATED REPORT 2025 11

Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

About the Shikoku Electric Power Group

—Group business area expansion—

the Shikoku region

The Shikoku Electric Power Group —supporting

Electricity supplied Total electricity sales

Purchased Power 19,968 Own generated power

17,371

Wholesale 12,889

Retail sales

22,720

Other

(Purchased Power, Wholesale Exchanges, etc.)

FY2024

37,338

Thermal 9,482

FY2024

35,609

Lighting 7,728

12,791

Renewable energy

Facilities for electric power business (As of September 30, 2025)

7,176

(million kWh) Nuclear 5,722

2,167

Renewable energy

(million kWh)

Power 14,993

Asa

Takamatsu Okawa Kagawa

Sakaide (Total: 1,385 MW)

Unit No. 1: 296 MW (LNG)

Unit No. 2: 289 MW (LNG)

Unit No. 3: 450 MW (oil, etc.) Unit No. 4: 350 MW (LNG, etc.)

To southern part

Kitamatsuyama

Nyugawa

Toyo

Mishima

Sanuki

Ikawa

Awa

Naruto

of Awaji Island

Matsuyama

Matsuyama

Saijo

Matsuogawa Daini

Matsuogawa Daiichi

Kokufu

Kawauchi

Hongawa

Hirayama

Kagedaira

Hirono

Anan Converter station

Ozu

Yanadani Omogo Daisan

Odo

Bunsui Daiichi Kochi

Shingai

Ikata

Hiromi

Hongawa (615 MW)

615 MW (water pumping)

Naharigawa

Tachibana-wan (700 MW)

700 MW (coal)

(890 MW)

Nuclear power station Thermal power station

Unit No. 3: 890 MW

Hydropower stations (over 20 MW)

Substations (500 kV)

Substations (187 kV) AC/DC Converter station

Solar power station

Transmission line (500 kV) Transmission line (187 kV)

Major renewable energy power plants in which our group has invested and owns

* Dotted lines (transmission lines) represent equipment (power lines) from other companies.

12 Shikoku Electric Power Group INTEGRATED REPORT 2025

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

Hamriyah Gas-Fired Thermal Power (UAE)

[Output: Approximately 1,800 MW]

Overseas IPP owned capacity* Approx. 2,020 MW

* Including those not yet in operation

El Centro Solar Photovoltaic Power (USA)

[Output: Approximately 20 MW]

• Thermal power generation

• Renewable energy

Globally

Electric Power Group, Taking Flight

nt subsidiary

Shikoku

Coal procureme YN Energy Pty Ltd

HGI renewable energy business

developer (Indonesia)

[Output: Approximately 19 MW]

Agano Mega Solar

[Output: Approximately 46 MW]

[Output: Approximately 4 MW]

Yumesaki Yumefurusato Solar Power Plant

[Output: Approximately 50 MW]

Japan

Installation of Perovskite Solar Cells

Shikoku Electric Power Group INTEGRATED REPORT 2025 13

‌Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

Group Strengths in the Value Chain

Utilizing the strengths primarily cultivated in the electric power business, from fuel procurement to power generation, transmission, distribution, and provision of energy services, we provide a range of value to individual and corporate customers as well as business partners.

Fuel procurement

Electric power generation

Balancing Economic Efficiency and Stability in Fuel Procurement

A Competitive, Balanced Power Source Structure

Electric Power Business Value Chain

Expansion Beyond the Electric Power Business

• We economically and stably procure coal and LNG for thermal power generation, and uranium fuel for nuclear power in light of fuel characteristics.

• Spent nuclear fuel is stored within the power station and sent to a reprocessing facility. After being processed, it is then reused as fuel.

• Leveraging our Group’s procurement abilities, we directly procure high-quality coal at low prices and also sell it to companies outside the Group.

• We operate two LNG terminals in Shikoku, selling gas through pipelines and trucks.

  • We achieve a balanced power generation structure in the Shikoku region from the perspective of S (Safety) + 3E (Energy Security, Economic Efficiency, Environment).

  • We thoroughly implement the most economical operations in view of fuel prices and wholesale market prices.

  • Utilizing the know-how gained from the power generation business, we are engaged in renewable energy development throughout Japan and overseas power generation (IPP) projects.

  • Based on the technical capabilities developed through electric power-related construction, we have secured contracts for power plant-related works and facilities construction for both the public and private sectors.

    Our Group’s Strengths

    • Wide-ranging procurement of coal, LNG, oil, wood biomass, and uranium fuel, etc.

    • Stable fuel procurement through diversification of procurement sources, and of procurement periods and methods

    • Inventory management and procurement risk management, etc.

      • Extensive experience and know-how in the construction, operation, and maintenance of nuclear, renewable, and thermal power stations

      • Approximately 40% of our in-house power generation is from decarbonized sources (nuclear and renewable energy)

      • Know-how for optimizing the economics of supply and demand operations using AI, etc.

    Toward Sustainable Value Creation

• Balancing economical and stable procurement of fossil fuels and nuclear fuels

• Support for building supply chains for next-generation fuels such as ammonia and hydrogen, etc.

  • Achieving stable electricity supply through safe and stable operation of power plants

  • Gradual decarbonization of power sources in consideration of technological advancements and economic efficiency, etc.

14 Shikoku Electric Power Group INTEGRATED REPORT 2025

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

Transmission & distribution

Providing energy services

Reliable Network

Strong Trust and Brand Power in the Shikoku Region

• We deliver high-quality and stable electricity to our customers through improvements in the supply reliability of transmission, substation, and distribution facilities.

• We have a highly resilient transmission network connecting main transmission lines to Honshu via two routes.

• We are also receiving orders for construction and engineering projects related to transmission, substations, and distribution, not only in the Shikoku area but across Japan.

• We develop systems for stable operation of the power grid, and provide services utilizing smart meters.

• Leveraging the strong brand power and credibility cultivated through the electric power business, along with our many connections in local communities, we provide various products and services in addition to electric power sales, including LNG wholesale sales, solar PPAs, and energy solutions.

• In the information and communication sector, while steadily increasing the number of contracts in the FTTH business for individuals in Shikoku, we are also seeing an increase in contracts with customers outside Shikoku, including for corporate data center businesses.

• We are engaged in real estate and tourism businesses using our own assets, primarily in the Shikoku area.

• Extensive experience and know-how in the construction, operation, and maintenance of transmission, substation, and distribution facilities

• World-class electric power quality with few outages and stable frequency

• Preparation for large-scale disasters such as the Tonankai and Nankai earthquakes, including tsunami countermeasures, recovery systems, and other related measures

• Strong brand power and credibility in the Shikoku region

• Strong networks with local governments, community organizations, and business partner companies

• Know-how and technical capabilities for providing energy-centered services, etc.

• Building next-generation networks, and maintaining the supply reliability and cost efficiency of transmission and distribution facilities

• Expanding the connection capacity and curbing output controls for renewable energy, etc.

• Providing one-stop support for customers’ comfortable, safe, and secure lifestyles

• Further increasing fans of the Shikoku Electric Power Group by continuously providing a variety of products and services, etc.

Shikoku Electric Power Group INTEGRATED REPORT 2025 15

‌Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

History of Shikoku Electric Power Group

Since our founding, we have fulfilled our public-interest mission as an energy supplier while expanding our business

1965

Saijo Power Station (oil) commenced operation

1970

Sakaide Power Station (oil) commenced operation

1994

Ikata Power Station Unit No. 3 (nuclear power) commenced operation

2000

Tachibana-wan Power Station (coal) commenced operation

Electric power business

1953

Matsuogawa Daiichi Power Station (hydropower) commenced operation

1962

220 kV operation commenced on J-POWER’s Chushi main line

180 kV operation of main power transmission system commenced in Shikoku

1977

Ikata Power Station Unit No. 1 (nuclear power) commenced operation

1982

Hongawa Pumping Power Station commenced operation

J-POWER (now J-POWER Transmission Network Co., Ltd.) interconnectors commenced operation between Honshu and Shikoku

The Honshu-Shikoku interconnectors are attached to the bridge girders of the Seto Ohashi Bridge.

500 kV operation commenced on the Shikoku-chuo main line

Operations commenced at Anan-Kihoku DC main line

Anan Converter Station, which is the entry point on the Shikoku side.

2001-2011

1996-2008 7 rate reductions

1951 (Founding) to 1970 1971 to 2000

Social Situation High economic growth he oil crisis, Plaza Accord, the bubble economy and its collapse, and economic globalization

Social Issues and Solutions

• Responding to rapidly increasing electricity demand

• Shift in power sources development away from hydroelectric power generation, mostly towards oil-fired power generation

  Energy

  1964

  Started development and sales of small electric water heaters

  1997

  District heating supply business commenced

  Construction and engineering

  Businesses other than electricity

  1963

  Nankai Electric Works Co., Ltd. established

  (1965 changed trade name to Shikoku Electric Construction Co., Ltd., now Yondenko Corporation)

  1970

  1979

  Shikoku Electric Construction Co, Ltd. listed on the Tokyo Stock Exchange (now Yondenko Corporation)

  Yonden Engineering Co., Inc. established

  The Sunport area of Takamatsu City, where

  Shikoku Electric Power supplies heat

  1961

  1984

  Shikoku Information Network Co., Ltd. established (2002 Changed trade name to STNet, Inc.)

  1951

  Shikoku Enterprise Co., Ltd. established (2003 changed trade name to Yonden Business Co., Inc.)

  * Segment: Other (commerce and real estate)

  Shikoku Instrumentation Industry Co., Ltd. established (1976 changed trade name to Shikoku Measurement Co., Ltd.)

  * Segment: Other (equipment manufacturing)

  IT/Communication business

• Construction of transmission and distribution facilities in parallel

• Diversifying power sources to reduce dependence on oil, and addressing increasing electricity demand

  • After the oil crisis, we promoted the development of coal-fired, nuclear and other power sources to realize a well-balanced power source configuration

  • We switched to 500 kV main transmission lines and regional interconnectors connecting to Honshu via two routes

  16 Shikoku Electric Power Group INTEGRATED REPORT 2025

  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

  by solving social issues that change with the times, and digging up customer needs.

  2020

  The transmission & distribution business was spun off

  2025

  Start of operation of the Matsuyama Storage Plant by Matsuyama Mikan Energy LLC

  2005

  Woody biomass co-firing commenced at Saijo Power Station

  2010

  Replacement of Sakaide Power Station Unit No. 1 with LNG-CC

  Commencement of operation at Sakaide LNG terminal

  Expansion of Matsuyama Solar Power Station

  2016

  Replacement of Sakaide Power Station Unit No. 2 with LNG-CC

  Shikoku Electric Power Transmission & Distribution Company

  2023

  Replacement of Saijo Power Station Unit No. 1

  2012 Commencement of Feed-in Tariff (FIT) system with fixed purchase price for renewable energy

  Buy-back and retirement of treasury stock (cancellation of approx. 57 million shares)

  through increased efficiency of management

  2001 to 2010

  Grid-connected capacity of solar and

  wind power

  Approx. 490 MW (end of FY2012)

  2013

  Rate increases due to the long-term shutdown of the Ikata Power Plant

  2011 to present

  Approx. 3,790 MW (end of FY2024)

  2023

  Rate increases due to revisions in fuel cost adjustment system’s calculation parameters

  Deregulation of electricity, social changes due to the spread of the internet and mobile phones

  Great East Japan Earthquake, adoption of the Paris Agreement, tight supply/ demand balance for electricity, soaring fossil fuel prices, promotion of GX

  • Deregulation of electric power retailing and rising demand for information and communication services

  • After liberalization, electricity rates were reduced multiple times

  • Continuous buyback and cancellation of treasury stock

    2008

    Overseas IPP business commenced

    2004

    Optical telecommunications services business supplying individual households commenced (STNet, Inc.)

    2013

    Launch of Shikoku’s first 10 Gbs optical communication service

    (STNet, Inc.)

    Commencement of data center business

    2002

    Yonden Life Care Inc. established (care services)

    Profits from Businesses Other than Electricity

    FY2011

    operating profit

    5.6 billion yen

    Growth in profits

    FY2024

    ordinary profit

    24.6 billion yen

    2022

    Ras Laffan C Power and Water Project in Qatar

    2022

    Commencement of operations at Niihama LNG Co., Ltd.

  • Expansion of IT/Communication business and entry into international business

  • Review of nuclear power generation safety standards, power system reform, and balancing climate change response with stable supply

    • Restarting Ikata Unit No. 3

    • New development of renewable energy, more efficient and low-carbon thermal power generation

    • Expanding operations in businesses other than electric power

      Shikoku Electric Power Group INTEGRATED REPORT 2025 17

      ‌Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

      Sustainable Value Creation Process

      We will realize the creation of sustainable corporate value by forging stronger relationships of trust with every stakeholder who supports our Group’s business, and fulfilling our social responsibilities widely through business activities.

      Awareness of business environment

      Revealing social issues

      • Realization of high-quality, stable energy supply

      • Promotion of GX (green transformation) (decarbonization of power sources and promotion of the electrification of society)

      • Labor shortages, reviewing and diversification of work styles

      • Lifting of zero interest rates, rising prices and wages, depreciation of yen

      • Increase and intensification of natural disasters

        Recognition of risks and opportunities for sustainable value creation

        Changes in business climate

      • Expectations for increase in electricity demand, and risks of power supply and demand constraints

      • Non-discrimination in wholesale sales (subsidiaries and third-party retailers), competition in electricity retailing

      • Stronger nuclear power generation safety regulations

      • Large-scale introduction of renewable energy power sources

      • Expansion of solar PPAs and DR needs

      • Technological innovations such as generative AI, and promotion of DX

    Inputs

    Manufacturing Capital

• Power generation facilities: 5,340 MW

• Transmission line length: 3,405 km

• Distribution lines: 46,446 km

• Number of substations: 240

• Optical communication lines: approx. 40,000 km

  Financial Capital

• Equity capital: 438.0 billion yen

• Credit rating A+ (R&I)

  A- (S&P)

  Human Capital

• Number of employees: 7,962 (Electric power generation and sales 26%, Transmission and distribution 25% IT/

  Communication 11%, Energy 4%, Construction and engineering 17%, Others 17%)

  Intellectual Capital

• Technical expertise and know-how cultivated over many years of business activities

• Number of patents held: 258

  Social and Relationship Capital

• Number of retail electricity contracts: 2.49 million

• Number of major business locations in Shikoku: 84

• Number of material procurement partners for our Company and Shikoku Electric Power Transmission & Distribution Co., Inc.: about 2,300

• Number of individual shareholders in Shikoku region: approx. 37,000

  (About 1 in 80 people aged 20 or older in Shikoku is a shareholder)

  Natural Capital

• Rich nature and tourism resources in the Shikoku region

  Social and Customer Value

  R

  i

  s

  i

  n

  g

  e

  l

  Data center/Cloud International business

  Expansion Expansion from core business area

  Expansion into new areas by leveraging strengths of core business

  Shareholder Value

  g

  r

  o

  w

  i

  n

  g

  d

  e

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  a

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  d

  f

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  Group Core Business

  Decarbonization × Digitalizatio

  Core business

  Improvement of sustainability and profitability

  Steady organizational renewal and resilience enhancement

  * Data without a specified date is as of the end of the fiscal 2024.

  18 Shikoku Electric Power Group INTEGRATED REPORT 2025

  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

  Outputs Outcomes (Expectations from Stakeholders)

  t

  a

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  e

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  t

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  r

  s

  Employee Value

  Decarbonized power supply Energy solutions services

  n

  Challenge

  New technologies/new areas

  Creating value through integration with the energy business

  Products and Services

• Total electricity sales: 35.6 billion kWh

• New renewable energy installed capacity: 390 MW

• Number of FTTH subscriptions: 383,000

• Total overseas IPP equity capacity: 2.02 GW

  Financial Results

• Operating revenues: 851.3 billion yen

• Ordinary profit: 91.6 billion yen

• ROA: 5.9%

• ROE: 17.1%

• Cash flows from operating activities: 129.8 billion yen

• Shareholders’ equity ratio: 26.0%

  Social and Environmental Impact

• Reduction of GHG emissions (compared to FY2013): -41%

• Waste recycling ratio: 98.5%

• Total dividends: 8.2 billion yen

• Turnover rate: 0.5%

• Male childcare leave acquisition rate: 47.5%

  Customers

• Providing stable, high-quality, and low-cost energy

• Providing society with useful products and services

  PP.37-45

  Shareholders and Investors

• Returning profits to shareholders by continuously improving corporate value

• Prompt and appropriate disclosure of information

  PP.70-71

  Regional Society

  Drive Happiness Forward

• Coexistence and sustainable development with regional society

• Thorough implementation of compliance PP.60-61, 72

  Offer value to stakeholders

  Global Environment

• Balancing stable power supply and achieving a decarbonized society

• Reducing environmental impact and promoting environmental conservation

  PP.47-55

  Employees

• Acquiring and developing human resources to shape the future, and promoting DE&I

• Creating an environment in which employees can demonstrate their abilities

  PP.56-59

  Suppliers

  • Promoting coexistence, prosperity, and fair trading P.59

* Data without a specified date is as of the end of the fiscal 2024.

Shikoku Electric Power Group INTEGRATED REPORT 2025 19

‌Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

Review of Shikoku Electric Power Group Medium-Term Management Plan 2025 and Progress of Management Targets

Overview of Shikoku Electric Power Group Medium-Term Management Plan 2025

In Medium-Term Management Plan 2025, the electric power business, which is our core business, and businesses other than electricity are positioned as two main pillars. We have aimed to enhance our corporate value by focusing on the following two axes:

Strengthening business foundations and improving profitability for electric power generation, sales, and transmission & distribution

Expansion of growth businesses centered on the IT/ communication business and the international business. After formulating the plan, there was a tough start with

significant losses due to rapid fluctuations in fuel and market prices, but subsequent rate revisions and other measures enabled us to normalize business operations. Since fiscal 2023, volatility has remained high due to timing differences in fuel cost adjustments and fluctuations in transmission & distribution company earnings, but even under these circumstances, we recognize that our earning power has grown to a certain extent. This growth has also been supported by businesses positioned in growth areas, such as the IT/communication business and the international business, which have begun to generate stable profits.

Business activities (Sources of sustainability)

Electric power business

Strengthen the business foundation and improve profitability in power generation, sales, transmission, and distribution sectors

Creation of sustainable corporate value

Promotion of DX (Acceleration of business activities)

Businesses other than electricity

Expand growth businesses centered on information & communications and international businesses

Offer value to stakeholders

Medium-Term

Shikoku Electric Power Group Vision

Corporate Value

Overcoming the crisis that occurred in association with the suspension of operation of all nuclear power plants following the Great East Japan Earthquake

FY2011-FY2015

Medium-Term Management Plan 2020

The profitability of the electric power business declined due to a fall in the operation rate of Ikata Unit No. 3 as a result of a provisional disposition, more intense retail competition, and other such factors

FY2016-FY2020

Medium-Term Management Plan 2025

Period in which the Group is building a solid foundation for its vision for fiscal 2030

FY2021-FY2025

Management Plan 2030

PP.22-23

FY2026-FY2030

20 Shikoku Electric Power Group INTEGRATED REPORT 2025

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

Progress and Outlook of Management Targets

ROA

5.3% 5.9%

Shareholders’ equity ratio *End-of-year values for each fiscal year

26.0% 26.0%

FY2025 targets

-0.4%

2021

2022

-1.0%

2023

2024

3.4%

2025

(forecast)

FY2025 targets Approx. 3%

(ROE: Approx. 8%)

20.8%

2021

18.3%

2022

22.1%

2023

2024

2025

(forecast)

More than 25%

Interest-bearing debt ratio: Less than 2.0 times

Ordinary profit Ordinary profit of the growth businesses

(billion yen)

91.6

IT/communication

(billion yen)

10.6 10.0

FY2025 targets

80.0

53.0

FY2025 targets

40 billion yen

or more

Business 8.1

2021

2024

2025

(forecast)

8 billion yen

or more

-12.1 -22.5

International Business

(billion yen)

0.9

3.8 4.0

FY2025 targets

4 billion yen

or more

2021

2022

2023

2024

2025

(forecast)

2021

2024

2025

(forecast)

Cash flows from operating activities Dividends

(billion yen)

143.6

129.8

95.0

Approx.

110 billion yen

(Yen)

30

50 Achievement of

50 yen dividend

40

30

49.8

36.0

2021

2022

2023

2024

2025

(forecast)

2021

0

2022

2023

2024

2025

(forecast)

Cash flow results (cumulative total for 2021 to 2024)

Capital policy (Dividends)

19.6 billion yen

* Value reflecting changes in cash and deposits

Shikoku Electric Power Group INTEGRATED REPORT 2025 21

‌Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

New Medium-Term Management Plan

Shikoku Electric Power Group Medium-Term Management Plan 2030

Overall Picture of Business Development

In formulating the new Medium-Term Management Plan, we have positioned the energy business and IT/communication business, where we have strengths, as the core businesses of our Group. We recognize that the next five years will be shaped by two major environmental changes: decarbonization and digitalization. By fully leveraging the strengths our Group has cultivated, we will turn these changes into profit opportunities and strive to expand our business domains and create new value.

w

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Social and customer value

Shareholder

value Employee

g

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value

R

Data center/Cloud International business

Group Core Business

s

Decarbonized power supply Energy solutions services

Decarbonization × Digitalization

Expansion Core business Challenge

Expansion from core business area

Expansion into new areas by leveraging strengths of our core business

Improvement of sustainability and profitability

Steady organizational renewal and resilience enhancement

New technologies/ new areas

Creating value through integration with the energy business

Measures to strengthen management foundation for strategy realization

Strengthening of management practices [Improvement of earning power and resource generation/allocation

Promotion of human resource strategy [Growth for both company and employees]

Utilization of ROIC

Business Portfolio Management

Improvement of Productivity

Enhancing Employee Engagement

Promoting Talent Management Linked to Business Strategy

Promoting DE&I

Creating a Safe and Healthy Workplace

ESG strategy

22 Shikoku Electric Power Group INTEGRATED REPORT 2025

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

Management targets (FY2030*1)

Generation and allocation of cash flows

Generation

Allocation

Cash generation

Cash flows from operating activities:

550.0 billion yen or more

(Cumulative over five years)

Cash allocation

*1 With regard to the targets of ROE and Shareholder returns, we aim for their continuous achievement throughout the duration of Medium Term Management Plan 2030.

*2 ROIC is calculated as “(Ordinary Profit + Interest Expenses) × (1-Effective Tax Rate) ÷ Invested Capital [Beginning & end of term average].”

Sustainable growth

Management Targets

FY2030

Consolidated Ordinary Profit (Target)

65.0 billion yen

or more

FY2025

Consolidated Ordinary Profit (Forecast)

53.0 billion yen

Consolidated ROIC: 3.2%

Consolidated ROIC: 3.5% or more

ROIC 8%

ROIC 8%

ROIC 7%

ROIC 5%

Electricity:

33.5 billion yen

ROIC 2.5%

Power Generation

• Promotion of new initiatives for decarbonization and low carbon needs while maintaining competitiveness

  Electricity Retail

• Expansion of sales scale and improvement of profitability

  Power Transmission & Distribution

• Ensuring stable supply and thorough safety, and steadily implementation of business plans

• Promotion of next-generation transmission and distribution networks

  Decarbonization & Energy Solutions Services

• Strengthening of initiatives from both development and sales fronts

• Development and promotion of new services

Electricity:

37.0 billion yen

Generation & Sales:

30.0 billion yen Transmission & Distribution:

7.0 billion yen

ROIC 3%

IT/communication, Others

Energy

Shikoku Electric Power Group INTEGRATED REPORT 2025 23

‌Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

Stakeholder Engagement

In order to achieve the creation of sustainable value through business activities, we will strengthen relationships of trust with stakeholders and extensively fulfill our Group’s social responsibilities by performing transparent and open business activities based on the “Yonden Group Action Charter.”

Customers

• Provide products and services that are useful to society in good faith, with due consideration for safety, and with customer satisfaction as our top priority.

• With regards to electricity supply, deliver high-quality, stable electricity in accordance with our social mission as an electric utility.

  Methods and opportunities for dialogue

• Customer support through call centers, service counters, etc.

• Provision of solution services, etc.

  Regional Society

  • Contribute to the development of local communities as a member of society.

  • Maintain sound and proper relationships with political and administrative bodies.

  • Resolutely confront antisocial forces that pose a threat to civil society.

    Methods and opportunities for dialogue

  • Facility tours

  • Participation in local events

  • Energy outreach and visit-based dialogue activities, etc.

    Shikoku Electric Power Group

    Business Partners

    • Recognize that all our business partners are good partners on equal footing, and engage in fair and free business transactions.

      Methods and opportunities for dialogue

    • Public disclosure of procurement information, etc.

24 Shikoku Electric Power Group INTEGRATED REPORT 2025

Shareholders and Investors

• Conduct sound and transparent business activities with the aim of long-term, sustainable corporate value enhancement.

• Actively and accurately disclose information to shareholders and investors.

  Methods and opportunities for dialogue

• General meeting of shareholders

• Company briefings by the president and small meetings with management

• Individual meetings held by the IR/SR Secretariat, etc.

  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

  Employees

  • Respect the individuality and diversity of each employee.

  • Ensure a safe and comfortable working environment and create a cheerful and open corporate culture.

    Methods and opportunities for dialogue

  • Engagement surveys and workplace discussions

  • Dialogue with management

  • Labor-management meetings and workplace roundtables hosted by labor unions, etc.

    ESG Promotion System

    We have established a “Sustainability Promotion Council” chaired by the President of Shikoku Electric Power and vice-chaired by the President of Shikoku Electric Power Transmission & Distribution Co., Inc., to build a system that will supervise and promote ESG-related initiatives across the entire management hierarchy.

    Sustainability Promotion Council*2

    (Chair: President of Shikoku Electric Power, Vice Chair: President of Shikoku Electric Power Transmission & Distribution Co., Inc.)

Shikoku Electric Power

Environmental Management Committee

Compliance Promotion Committee

Global Environment

• Contribute to achieving carbon neutrality by 2050 through the low carbonization and decarbonization of power sources and the expansion of electricity use.

• Recognize the importance of environmental conservation and strive to reduce environmental impact in all business activities.

  Methods and opportunities for dialogue

• Information disclosure through our Integrated Report and website

  Group Companies

  Shikoku Electric Power Group Environmental Council*1

  Shikoku Electric Power Group Compliance Promotion Council*1

  *1 Promoted jointly by Shikoku Electric Power and each Group company

  *2 Held jointly with Shikoku Electric Power Transmission & Distribution Co., Inc.

• Environmental discussion meetings

  WEB

  Sustainability Promotion System (in Japanese only)

• Tree planting and reforestation activities, etc.

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

Shikoku Electric Power Group INTEGRATED REPORT 2025 25

‌Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

Initiatives that Increase Sustainability

Priority ESG Issues (Materiality)

Based on the perspectives of E (Environment), S (Social) and G (Governance) and the SDGs in the Shikoku region, we have identified priority issues that are closely linked to our business activities and are advancing sustainable value creation initiatives while fulfilling our social responsibilities.

26 Shikoku Electric Power Group INTEGRATED REPORT 2025

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

PP.78-79

Please refer to “Main ESG Data” for the definition of ESG indicators and changes over time.

Shikoku Electric Power Group INTEGRATED REPORT 2025 27

‌Shikoku Electric Power Group Value Creation, Lighting Up the Region and the Future

Carbon Neutral Challenge 2050 (Roadmap) [Revised September 2025]

As a responsible supplier of energy, we will work on the low-carbonization and decarbonization of power sources and expand the use of electric energy through electrification, etc., to contribute to the realization of carbon neutrality in 2050.

(Unit: thousand tons-CO2)

-50％*3

-60％*3

-50％*3

-60％*3

FY2013 FY2030 FY2035

Initiatives Specific Initiatives

28 Shikoku Electric Power Group INTEGRATED REPORT 2025