Developing Overseas Electricity Markets, Including China and Southeast Asia

「The Company recorded sales from periodic inspection work at domestic nuclear power plants and products for overseas customers, including safety valves for nuclear power plants in China.」

「The Company also recorded sales of products to overseas customers.」

「The Company completed multiple periodic inspection projects and recorded revenue at Kansai Electric Power's Takahama, Ohi and Mihama nuclear power stations and Kyushu Electric Power's Genkai and Sendai nuclear power stations, and also recorded revenue from overseas projects.」

「In new fields, we are pursuing measures to expand our overseas business, mainly in China and ASEAN, and aim to contribute to earnings at an early stage by opening new bases and taking other measures. We will also press ahead with our goal, set out in the Medium-Term Management Plan, of becoming a "global niche leader contributing to the safe and stable operation of the world's energy infrastructure through high-quality valves and plant maintenance."」

「In new fields, we are pursuing measures to expand our overseas business, mainly in China and ASEAN, and aim to contribute to earnings at an early stage by opening new bases and taking other measures.」

「In the valve business, in addition to recording revenue from periodic inspection work at Kansai Electric Power's Takahama Nuclear Power Station Unit 4, Kyushu Electric Power's Sendai Nuclear Power Station Units 1 and 2, and Shikoku Electric Power's Ikata Nuclear Power Station Unit 3, the Company recorded revenue from major projects including a complete set of high-pressure valves for the Central Java Thermal Power Plant in Indonesia and a complete set of motor-operated valves and other products for the Hanwha TotalEnergies Daesan petrochemical plant in South Korea. Revenue was ¥6,681 million, up 5.5% year on year.」

「By reporting segment, in valve business products, revenue was recognized for high-pressure valve packages for a thermal power plant in Indonesia and for Kobe Steel's Moka power plant. The accumulation of smaller projects for thermal power generation also resulted in revenue exceeding that of the same period of the previous year.」

「In the valve business, apart from recording sales of a complete set of high-pressure valves for a thermal power plant in Indonesia, there were no major projects. However, the accumulation of smaller projects resulted in revenue at about the same level as in the same period of the previous year.」

「We worked on projects whose delivery dates were concentrated in and after the second quarter, including periodic inspection work at Unit 3 of Shikoku Electric Power's Ikata Nuclear Power Station and the manufacture of valve products for thermal power plants in Indonesia and South Korea.」

「However, China's expected ratification of the so-called "Paris Agreement" adopted at the Conference of the Parties to the United Nations Framework Convention on Climate Change last September has led to changes in the country's thermal power policy, forcing our Group to revise its sales strategy.」

「China and the countries of Southeast Asia, which continue to experience robust economic growth, have numerous plans to construct thermal power plants. It goes without saying that how our Group approaches these overseas electric power markets will be a critical factor if we are to maintain and further expand the scale of our business.」