Improving Asset Efficiency and Profitability through Business Selection

「We will encourage each business division to consider and implement measures to improve capital efficiency based on the characteristics of its business, including expanding profits through reviews of facility operations and the realization of environmental value, prioritizing capital investment in high-return and growth areas, and accelerating the recovery of funds through asset rotation, with the aim of improving company-wide ROIC.」

「During the current interim consolidated accounting period, J-POWER Frontier Consolidation, L.P. and 9 other companies, for which all interests held were transferred in April 2025, and Green Country Energy, LLC, for which all interests held were transferred in June 2025, were excluded from the scope of application of the equity method. J-POWER East Coast Consolidation, LLC and 4 other companies, which were liquidated in April 2025, were also excluded from the scope of application of the equity method.」

「At a meeting of the Board of Directors held on 30 August 2024, the company resolved to transfer all of its interests in J-POWER Frontier Consolidation, L.P. and J-POWER Frontier Consolidation GP, LLC, in which it holds a 50% interest through its wholly owned subsidiary J-POWER North America Holdings Co., Ltd., to ACR IV FRONTIER HOLDINGS LLC.」

「On 28 June 2024, the company decided to transfer all of its interest in Green Country Energy, LLC, in which it holds a 50% interest through its wholly owned subsidiary J-POWER North America Holdings Co., Ltd., to Public Service Company of Oklahoma.」

「During the current consolidated fiscal year, 華潤電力（賀州）有限公司 and 2 other companies, for which all interests held were transferred in March 2024, were excluded from the scope of application of the equity method. During the current consolidated fiscal year, 大牟田プラントサービス㈱ ceased to qualify as a consolidated subsidiary because it was liquidated in February 2024.」

「During the second-quarter consolidated accounting period, 糸魚川発電㈱ ceased to qualify as a consolidated subsidiary because all shares held were transferred in August 2022. あきたみらいエネルギー(同) and 由利本荘みらいエネルギー(同) were excluded from the scope of application of the equity method because they were liquidated in August 2022. During the current third-quarter consolidated accounting period, 美浜シーサイドパワー㈱ ceased to qualify as a consolidated subsidiary because it was liquidated in November 2022.」

「At a meeting of the Board of Directors held on 31 August 2022, the company resolved to transfer a 49% interest in Jackson Generation, LLC, in which it holds a 100% interest through its wholly owned subsidiary J-POWER North America Holdings Co., Ltd., to Gulf Energy USA, LLC. The partial transfer is expected to be completed by the end of December 2022 after the required approvals from the Federal Energy Regulatory Commission and the Committee on Foreign Investment in the United States have been obtained. The transaction was carried out pursuant to a resolution of the Board of Directors to achieve both stable and continuous earnings in the increasingly deregulated U.S. electricity market and portfolio optimization. Interest transferred: 49%; transfer price: US$409.6 million; interest after transfer: 51%.」

「山口宇部パワー㈱ ceased to qualify as a consolidated subsidiary because its liquidation was completed in February 2022.」

「During the current third-quarter consolidated accounting period, 嘉恵電力股份有限公司, for which all shares held were transferred in November 2020, was excluded from the scope of application of the equity method.」

「At a meeting of the Board of Directors held on 31 August 2020, the company resolved to transfer all shares in 嘉恵電力股份有限公司, held by its consolidated subsidiary J-Power Investment Netherlands B.V., to Asia Cement Corporation, and entered into a share transfer agreement on 4 September 2020. Subject to approval by Taiwan's Investment Commission, Ministry of Economic Affairs, and other conditions, the company plans to transfer all shares on 30 November 2020. In connection with this share transfer, 嘉恵電力股份有限公司 will be excluded from the scope of application of the equity method.」

「During the current second-quarter consolidated accounting period, NCPバイオガス発電投資事業有限責任組合 was excluded from the scope of application of the equity method in connection with liquidation proceedings in July 2020.」

「During the current first-quarter consolidated accounting period, エナリスDEバイオガスプラント㈱ was excluded from the scope of application of the equity method in connection with liquidation proceedings in June 2020.」

「During the current third-quarter consolidated accounting period, Kalayaan Power Management Corporation, which was dissolved in July 2019, and Zajaczkowo Windfarm Sp. z o.o., for which all shares held were transferred in November 2019, were excluded from the scope of application of the equity method.」

「For each cross-held shareholding, the company annually verifies at meetings of the Board of Directors whether it should be held and whether holding it is reasonable and necessary, from the perspectives of consistency with the purpose of the holding, profitability relative to the company's cost of capital, and other factors. In accordance with this policy, the company conducted a review of these shares at a meeting of the Board of Directors. As a result, some of the shares held were sold during the current fiscal year.」

「During the current third-quarter consolidated accounting period, ㈱ジェイパワージェネックスキャピタル ceased to qualify as a consolidated subsidiary because it was liquidated in November 2018.」

「㈱ジェネックス was excluded from the scope of application of the equity method because all shares held were sold in May 2018.」

「㈱ジェネックス was excluded from the scope of application of the equity method because all shares held were sold in May 2018.」

「In addition to initiatives ① through ⑤ above, the group will continue to reassess the value of each individual business, select assets and work to further improve profitability.」

「In addition to initiatives ① through ⑤ above, the group will continue to reassess the value of each individual business, select assets and work to further improve profitability.」