Message from Top Management

To Our Stockholders and Investors

Mareshige Shimizu President and Director image

Mareshige Shimizu

Representative Director
President & Chief Executive Officer

Allow us to begin by extending our heartfelt gratitude for your continued support of our business activities.

Regarding the consolidated financial result of FY2022-2Q, both revenues and income decreased from the same period of the previous fiscal year.
Operating revenues decreased mainly due to a change in the method of recording revenue related to feed-in tariffs for renewable energy according to the application of the "Accounting Standard for Revenue Recognition”.
Ordinary income decreased mainly due to the time lag of the fuel cost adjustment system as a result of higher fuel prices.
As a result, profit attributable to owners of the parent decreased from the same period of the previous fiscal year.

Regarding the forecasts of financial result of FY2022, we expect a significant deterioration in income and expenditure due to an increase in loss on the time lag of the fuel cost adjustment system as a result of increases in fuel prices and an increase in the cost of procuring electricity to secure supply capacity in winter.

As for the interim dividends of FY2022, we have decided to pay out 25 yen per share based on our basic policy that is to pay out stable dividends. On the other hand, we have revised the year-end dividends forecast of FY2022 from 25 yen per share to undecided, because it is necessary to assess the impact of the uncertainty in supply and demand situation of electricity in winter and the trend of fuel prices on the current year's income in addition to that the year-end forecast of financial results has deteriorated significantly.
We continue to make group-wide maximum efforts to reduce costs and improve our bottom line as soon as possible.

In the midst of a drastically changing business environment, including intensifying competition for a retail electricity market and the global trend toward decarbonization, we are working to achieve our Group Corporate Vision, "ENERGIACHANGE 2030”. Furthermore, in February 2021, we announced our Carbon Neutral 2050 initiatives and we are making group-wide efforts to realize a decarbonized society by introducing renewable energy to the maximum extent possible, activating nuclear power plants on the premise of having put utmost priority on ensuring safety, and developing new decarbonization technologies.

In September 2021, Unit 2 of Shimane Nuclear Power Station received permission from the Nuclear Regulation Authority to change its reactor installation license. We will continue to sincerely respond to reviews as we seek approval for our design and construction plans and an operational safety programs, and make efforts to further improve safety.

In addition, we are constructing the coal-fired Unit 2 of Misumi Power Station as a replacement for inefficient, aging thermal power plants by using the best available power generation system. We are working toward starting its operation in FY2023 as a power plant with excellent environmental performance by reducing CO2 emissions through mixed-fuel combustion with biomass.

Our business environment is changing at dizzying speeds, including not only efforts for decarbonization but also social and economic changes brought about by COVID-19 as well as digital transformation. However, we aim to quickly notice the needs for achieving a sustainable society and then answer those needs, and by doing so, work toward sustainable corporate value growth of our group.

We would like to ask our stockholders and investors for their continued understanding and support.

December 2021

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