Notice Regarding the Recognition of Fair Value Losses on Forward Electricity Transactions and Related Items (Operating Expenses) | Tohoku Electric Power Company,Incorporated (9506) timely disclosure

Worth reading

30Immaterial

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Direction

Deterioration

Direction inferred from the company’s description.

Scale

506

¥100 million

Wording

Definitive

How definitive the wording is.

Recognition of a Fair Value Loss on Electricity Forward Transactions and Other Transactions as an Operating Expense

Subject Entity

Tohoku Electric Power Company,Incorporated (the Company)

Target Locations / Products

Electricity forward transactions and other transactions (fuel and electricity trading)

This disclosure04/30/2026

Cause

The surge in fuel prices and electricity market prices resulting from the recent deterioration in the situation in the Middle East

Amount of Impact on Business Performance

¥50.6 billion (operating expense)

Accounting period in which recognized

Fiscal year ending March 2026 (fair value loss); fiscal 2026 (reversal gain)

Outlook

The amount will be recognized as a reversal gain in the following fiscal year (fiscal 2026), resulting in no impact on the combined results for the two fiscal periods. In addition, fair value gains and losses do not involve cash flow and will not affect consolidated cash flow.

Event that occurred
Item	Details
Event name	Recognition of a Fair Value Loss on Electricity Forward Transactions and Other Transactions as an Operating Expense
Subject Entity	Tohoku Electric Power Company,Incorporated (the Company)
Target Locations / Products	Electricity forward transactions and other transactions (fuel and electricity trading)
Cause	The surge in fuel prices and electricity market prices resulting from the recent deterioration in the situation in the Middle East
Amount of Impact on Business Performance	¥50.6 billion (operating expense)
Accounting period in which recognized	Fiscal year ending March 2026 (fair value loss); fiscal 2026 (reversal gain)
Outlook	The amount will be recognized as a reversal gain in the following fiscal year (fiscal 2026), resulting in no impact on the combined results for the two fiscal periods. In addition, fair value gains and losses do not involve cash flow and will not affect consolidated cash flow.

Items this document does not state (18)

Date of occurrenceDate recognized / date notice receivedImpact on Earnings ForecastType of litigation or proceedingCourt or authorityPlaintiffDefendantDate of filing / date of actionClaim amount / surcharge amountAmount of receivables at risk of non-collection or delayed collectionSuspended operationsScheduled resumption dateInvestigation structureMeasures to prevent recurrenceDirectors' and officers' liabilityVoting rights ownership percentage before the changeVoting rights ownership percentage after the changePlanned follow-up disclosure

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Fuel prices and electricity market prices surged as the situation in the Middle East deteriorated, causing certain electricity forward transactions and other transactions to be valued at a loss at fiscal year-end.

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