We would like to express our deepest gratitude for the tremendous support and understanding we have received from our stakeholders and investors.

Under the "Chugoku Electric Power Group Medium-term Management Plan (FY 2024-2025)," we have been making every effort with regaining trust and restoring our revenue and financial base positioned as issues of utmost importance.

Reflecting on FY 3/2025, we announced our "Commitment to Legal Compliance" in September 2024, based on the progress of our efforts to prevent the recurrence of a series of inappropriate conduct and to reform our corporate culture. In addition, we were able to resume operation of Shimane Nuclear Power Station Unit 2 in December 2024. We believe these are major milestones for the management of the company.

For the financial results for FY 3/2025, our consolidated ordinary profit reached 128.5 billion yen, and we restored the consolidated shareholders’ equity ratio to 15%, which was our goal for the end of FY 3/2026, a year ahead of schedule. These achievements resulted from factors such as the resumption of operation at Shimane Nuclear Power Station Unit 2 as well as an increase in total electricity sales volume due to high summer temperatures and the like, utilization of the wholesale trading market, and overall management efficiency improvements across the Group.

We established two temporary projects from April to September in 2024 for “profitability reinforcement” and “power balancing optimization.” Now, we have shifted to the implementation stage based on the results of investigations by the projects as a policy and initiative aimed at increasing revenue. Such efforts are steadily bearing fruits as we expect an increase in total electricity sales volume in FY 3/2026 from the previous fiscal year. We will continue to increase our earning power by advancing trading technology for electricity and fuel, and offering new rate plans and services that meet diversifying customer needs.

In February 2025, the Cabinet approved Japan's "Seventh Strategic Energy Plan," which sets the major direction of Japan's energy and environmental policies, together with the "GX (green transformation) 2040 Vision" and the "Plan for Global Warming Countermeasures," indicating a policy of maximizing the use of energy sources with a high decarbonization effect, such as renewable energy and nuclear power, that contribute to energy security.

The Group will continue to make decarbonization investments for the start of operation at Shimane Nuclear Power Station Unit 3, the replacement of the Yanai Power Station Unit 2 series, and other facilities aimed at the stable supply of electricity, decarbonization of our power sources, and enhancement of our future competitiveness and growth. To that end, significant funds are necessary. We believe that it is required for us to generate profits, and restore and enhance our financial base on a Group-wide basis, while ensuring to raise necessary funds until around 2030, when we aim to commence operations at power sources in order to improve the corporate value of our Group and shareholder value for the future. Based on this belief, we have decided on a new dividend policy with a dividend payout ratio of 12% as a target.

With the above in mind, we are currently investigating a new Group Corporate Vision and Medium-term Management Plan for the next fiscal year. We will consider changes in the business environment, such as increasing needs for decarbonization and growing demand for electricity, to be significant opportunities to contribute to the development of the Chugoku region, which forms the center of our business base, and to become a corporate group that evolves sustainably.

We would like to ask for the continued understanding and support of our shareholders and investors.

April 2025

*In this message, the term "FY 3/2025" refers to the period between April 1, 2024 and March 31, 2025.
*This message has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.