Recognition of Non-Operating Income (Gains on Power Futures and Derivative Valuation Gains)
EF-ON INC. (the filing company)
Power retail business; power futures transactions through the Tokyo Commodity Exchange, Inc.
Power futures prices surged due to a sudden change in the international situation. Under current accounting rules, hedge accounting cannot be applied to power procurement.
¥397 million in realized gains on power futures and ¥1,010 million in derivative valuation gains on unsettled power futures transactions (non-operating income)
Fiscal year ending June 2026 (1 July 2025 to 30 June 2026)
The Company will use power futures transactions to curb increases in power procurement costs and stabilize future earnings.
| Item | Details |
|---|---|
| Event name | Recognition of Non-Operating Income (Gains on Power Futures and Derivative Valuation Gains) |
| Date of occurrence | Fiscal year ending June 2026 (1 July 2025 to 30 June 2026) |
| Subject Entity | EF-ON INC. (the filing company) |
| Target Locations / Products | Power retail business; power futures transactions through the Tokyo Commodity Exchange, Inc. |
| Cause | Power futures prices surged due to a sudden change in the international situation. Under current accounting rules, hedge accounting cannot be applied to power procurement. |
| Amount of Impact on Business Performance | ¥397 million in realized gains on power futures and ¥1,010 million in derivative valuation gains on unsettled power futures transactions (non-operating income) |
| Accounting period in which recognized | Fiscal year ending June 2026 (1 July 2025 to 30 June 2026) |
| Outlook | The Company will use power futures transactions to curb increases in power procurement costs and stabilize future earnings. |
Items this document does not state (17)
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.Power futures transactions are conducted to curb increases in power procurement costs. Due to a sudden change in the international situation, futures prices surged, increasing the impact of derivative valuations on profit and loss. In addition, under current accounting rules, hedge accounting cannot be applied to power procurement, so gains and losses on futures transactions are recognized as non-operating income and expenses.