FY2026 First-Quarter Financial Results Briefing Materials | Tohoku Electric Power Company,Incorporated (9506) timely disclosure

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Direction

Mixed performance

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Scale

-31

¥100 million (year-on-year change in ordinary profit)

Wording

Avoiding a definitive answer

How definitive the wording is.

Contents of this document

Financial results presentationFY2026 First Quarter9 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥7,853 hundred million+46.7%

Operating profit¥600 hundred million-6.6%

Ordinary income¥544 hundred million-5.4%

Net income¥361 hundred million-4.2%

Results for the three months of the current quarter

Net Sales¥785.3 billion

Operating profit¥60 billion

Ordinary income¥54.4 billion

Profit attributable to owners of parent for the quarter¥36.1 billion

Full-year earnings forecastTo be determined

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Time-lag impact of the fuel cost adjustment systemApproximately -¥30.0 billion
Changes in market and sales conditions+¥5.0 billion
Lower balancing costs in the transmission and distribution business, among other factors+¥2.7 billion
Lower operating rate at Onagawa Unit 2-¥10 billion
Other-¥500 million
Reversal of the impact of fair-value adjustments at the end of FY2025+¥56.5 billion
Impact of fair-value adjustments in the first quarter of FY2026-¥26.8 billion

New initiatives

Strengthening efforts to attract data centers
Collaboration with partner companies to build distributed AI data centers
Expanding corporate PPA services and operating the PPA matching website “Soramina”
Expanding renewable energy development and participation
Development and reinforcement of transmission grids and interregional interconnection lines

Key KPIsA metric the company considers important as a management benchmark.

Retail electricity sales volume14,368 million kWh
Year on year against the same period last year+1,154 million kWh, 108.7%
Wholesale electricity sales volume4,478 million kWh
Year on year against the same period last year-152 million kWh, 96.7%
Total electricity sales volume18,845 million kWh
Year on year against the same period last year+1,001 million kWh, 105.6%
In-house electricity generation volume9,929 million kWh
Year on year against the same period last year-3,082 million kWh, 76.3%
Electricity purchased from other companies10,382 million kWh
Year on year against the same period last year+3,441 million kWh, 149.6%
Total available supply capacity19,194 million kWh
Year on year against the same period last year+1,003 million kWh, 105.5%
Area demand167 100 million kWh
Year on year against the same period last year-100 million kWh, 98.9%

Segment results

Generation and Retail
Net Sales¥665.3 billion
Ordinary income¥62.3 billion
Year on year against the same period last yearRevenue increased by ¥211.8 billion; ordinary profit decreased by ¥17.4 billion
Transmission and Distribution
Net Sales¥227.1 billion
Ordinary income-¥8.5 billion
Year on year against the same period last yearRevenue increased by ¥30.8 billion; ordinary profit improved by ¥2.7 billion
Other
Net Sales¥39.5 billion
Ordinary income¥1.7 billion
Year on year against the same period last yearRevenue increased by ¥6.4 billion; ordinary profit increased by ¥1.0 billion

Financial targets

Consolidated ordinary profit, excluding the time-lag impact of the fuel cost adjustment system
FY2026 target¥190.0 billion or more
FY2030 Target¥200 billion or more
Consolidated capital adequacy ratio
FY2026 targetAround 20%
FY2030 Target25% or higher
Consolidated ROIC
FY2026 targetApproximately 3.5%
FY2030 TargetAt least 3.5%

Market Size / Share

Electricity demand in the eastern Japan 50 Hz area is expected to increase by approximately 9%, or approximately 32.6 billion kWh, over the next 10 years

Orders received and order backlog

Orders receivedApproximately ¥158.0 billion (cumulative corporate PPA total)

Annual Dividend

Annual¥40 per share

Interim¥20 per share

End of period¥20 per share

Payout ratio

Not disclosed. DOE is used as a guideline at 2%

Contents of this document
Item	Details
Document type	Financial results presentation
Fiscal Period Covered	FY2026 First Quarter
Net Sales	¥7,853 hundred million (YoY +46.7%)
Operating profit	¥600 hundred million (YoY -6.6%)
Ordinary income	¥544 hundred million (YoY -5.4%)
Net income	¥361 hundred million (YoY -4.2%)
Results for the three months of the current quarter	Net Sales ¥785.3 billion / Operating profit ¥60 billion / Ordinary income ¥54.4 billion / Profit attributable to owners of parent for the quarter ¥36.1 billion
Full-year earnings forecast	To be determined
Segment results	Segment Generation and Retail / Net Sales ¥665.3 billion / Ordinary income ¥62.3 billion / Year on year against the same period last year Revenue increased by ¥211.8 billion; ordinary profit decreased by ¥17.4 billion, Segment Transmission and Distribution / Net Sales ¥227.1 billion / Ordinary income -¥8.5 billion / Year on year against the same period last year Revenue increased by ¥30.8 billion; ordinary profit improved by ¥2.7 billion, Segment Other / Net Sales ¥39.5 billion / Ordinary income ¥1.7 billion / Year on year against the same period last year Revenue increased by ¥6.4 billion; ordinary profit increased by ¥1.0 billion
Breakdown of Factors Affecting the Change	Factors Time-lag impact of the fuel cost adjustment system / Amount Approximately -¥30.0 billion, Factors Changes in market and sales conditions / Amount +¥5.0 billion, Factors Lower balancing costs in the transmission and distribution business, among other factors / Amount +¥2.7 billion, Factors Lower operating rate at Onagawa Unit 2 / Amount -¥10 billion, Factors Other / Amount -¥500 million, Factors Reversal of the impact of fair-value adjustments at the end of FY2025 / Amount +¥56.5 billion, Factors Impact of fair-value adjustments in the first quarter of FY2026 / Amount -¥26.8 billion
Key KPIs	Indicator name Retail electricity sales volume / Value 14,368 million kWh / Year on year against the same period last year +1,154 million kWh, 108.7%, Indicator name Wholesale electricity sales volume / Value 4,478 million kWh / Year on year against the same period last year -152 million kWh, 96.7%, Indicator name Total electricity sales volume / Value 18,845 million kWh / Year on year against the same period last year +1,001 million kWh, 105.6%, Indicator name In-house electricity generation volume / Value 9,929 million kWh / Year on year against the same period last year -3,082 million kWh, 76.3%, Indicator name Electricity purchased from other companies / Value 10,382 million kWh / Year on year against the same period last year +3,441 million kWh, 149.6%, Indicator name Total available supply capacity / Value 19,194 million kWh / Year on year against the same period last year +1,003 million kWh, 105.5%, Indicator name Area demand / Value 167 100 million kWh / Year on year against the same period last year -100 million kWh, 98.9%
Financial targets	Indicator Consolidated ordinary profit, excluding the time-lag impact of the fuel cost adjustment system / FY2026 target ¥190.0 billion or more / FY2030 Target ¥200 billion or more, Indicator Consolidated capital adequacy ratio / FY2026 target Around 20% / FY2030 Target 25% or higher, Indicator Consolidated ROIC / FY2026 target Approximately 3.5% / FY2030 Target At least 3.5%
Annual Dividend	Annual ¥40 per share / Interim ¥20 per share / End of period ¥20 per share
Payout ratio	Not disclosed. DOE is used as a guideline at 2%
Orders received and order backlog	Orders received Approximately ¥158.0 billion (cumulative corporate PPA total) / Order backlog Not disclosed
Market Size / Share	Market Size Electricity demand in the eastern Japan 50 Hz area is expected to increase by approximately 9%, or approximately 32.6 billion kWh, over the next 10 years / Share Not disclosed
New initiatives	Strengthening efforts to attract data centers, Collaboration with partner companies to build distributed AI data centers, Expanding corporate PPA services and operating the PPA matching website “Soramina”, Expanding renewable energy development and participation, Development and reinforcement of transmission grids and interregional interconnection lines

Items this document does not state (14)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsAcquisition of treasury sharesCapital expendituresKey points of the Q&A

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.

Revenue increased mainly due to higher transactions outside the service area, including self-trading associated with the indirect auction. Ordinary profit declined despite improved earnings resulting from changes in market and sales conditions, lower balancing costs and the impact of fair-value adjustments, due to the lower operating rate at Onagawa Unit 2 and the time-lag effect of the fuel cost adjustment system. The full-year earnings forecast remains undecided because of multiple uncertainties, including geopolitical risks, fuel prices, transmission and distribution tariff revisions, and earnings related to supply-demand balancing.

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