Risk to the stable operation of power-generation facilities

「Although the エフオン日田 and エフオン壬生 Power Plants experienced outages in their grid interconnection lines due to lightning strikes, as well as unplanned outages for repairs to some auxiliary equipment,」

「Apart from planned outages, unplanned outages occurred at Efon Hita Power Plant and Efon Mibu Power Plant due to lightning and repairs to certain auxiliary equipment.」

「In the power generation business within the Green Energy Business, Efon Shingu Power Plant operated at reduced output due to insufficient fuel procurement and suspended operations for approximately 2 weeks in October for scheduled maintenance.」

「Except for scheduled voluntary inspections at EF-ON Shingu in January and EF-ON Mibu in March, operations progressed steadily without any major problems.」

「In the power generation business within the Green Energy segment, there was no major trouble. The eF-On Shirakawa and eF-On Hita power plants carried out their annual inspections steadily as scheduled in November, while the other group power plants operated smoothly.」

「The eF-On Hita and eF-On Shingu power plants experienced transmission shutdowns caused by lightning strikes. In addition, the eF-On Shingu Power Plant experienced trouble with auxiliary boiler equipment, resulting in an unplanned shutdown of approximately 1 day.」

「In the group's power generation business, the eF-On Shirakawa and eF-On Hita power plants conducted periodic self-inspections in November, but operations otherwise proceeded steadily without any major trouble.」

「The eF-On Hita and eF-On Mibu power plants experienced transmission shutdowns caused by lightning strikes. In addition, the eF-On Hita Power Plant experienced trouble with auxiliary boiler equipment, resulting in an unplanned shutdown of approximately 1.5 days.」

「At Efon Hita Power Plant, poor circulation in the boiler silica-sand circulation system occurred in the first quarter, followed by a problem with the in-furnace steam piping in the second quarter, resulting in a substantial decrease in electricity transmitted over the year.」

「An earthquake registering lower 6 on the Japanese seismic intensity scale, with its epicenter off the coast of Fukushima Prefecture, occurred on 16 March, causing an emergency shutdown at Efon Shirakawa Power Plant. There was no impact on the facilities, and operations were restored approximately 8 hours later.」

「An unplanned outage of approximately 4 days occurred due to a problem with the in-furnace steam piping at Efon Hita Power Plant.」

「Although エフオン Hita temporarily experienced a decline in power transmission due to a problem with the silica sand circulation system inside the boiler」

「In addition, エフオン Mibu experienced just under 1 week of unplanned downtime in the first quarter and approximately 4 days in the fourth quarter, but the overall impact on performance for the consolidated fiscal year was limited, and all power plants were able to maintain their planned operating levels.」

「EF-ON Mibu conducted its first annual inspection and underwent a planned outage of approximately 2 weeks, while the other 3 power plants operated smoothly.」

「The eF-On Shirakawa and eF-On Hita power plants underwent their regular annual maintenance, resulting in shutdowns of approximately 2 weeks. Meanwhile, the eF-On Bungo-Ono and eF-On Mibu power plants maintained high operating rates smoothly.」

「The Mibu Power Plant, which began operations in the second half of the previous fiscal year, experienced an unplanned outage lasting just under 1 week in September. However, its summer operations and fuel consumption proceeded smoothly and made a significant contribution to improved Group performance.」

「エフオン Shirakawa and エフオン Hita Power Plants underwent annual scheduled maintenance and were shut down for more than 2 weeks, but the work was completed without problems. During the rest of the period, all power plants continued to operate smoothly at high utilization rates.」

「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors’ investment decisions among the matters relating to the business and financial position described in this quarterly report, nor were there any material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」

「In October, the EF-ON Bungo-Ono power plant experienced an unplanned outage of 47 hours due to a failure of control-system equipment.」

「In October, the EF-ON Bungo-Ono power plant experienced an unplanned outage of 47 hours due to a failure of control-system equipment.」

「However, if an unforeseen event occurs and the Group's facilities are damaged, the Group may be unable to generate the planned amount of electricity, potentially affecting its results.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「At each power plant, the utilization rate of unused wood increased from the previous corresponding period, and the plants operated smoothly without problems, resulting in substantial increases in both revenue and operating profit.」

「Profit declined due in part to repair costs arising from minor breakdowns.」

「Minor breakdowns at existing on-site captive power generation facilities resulted in repair costs and lower profit.」

「Minor breakdowns at existing on-site captive power generation facilities resulted in repair costs and lower profit.」

「However, if an unforeseen event occurs and the Group's facilities are damaged, the Group may be unable to generate the planned amount of electricity, potentially affecting its results.」