Okinawa Electric Power Incorporated : Summary of the Settlement of Accounts for FY2022 1st Quarter

Summary of the Settlement of Accounts for FY2022 1st Quarter

(April 1 - June 30, 2022)

July 29, 2022

The Okinawa Electric Power Company, Inc.

The Okinawa Electric

Power Company, Inc.

Table of contents

Financial	Financial Results for FY2022 1Q YTD (Year-on-Year Comparison)	2
Trends in Electricity Sales Volume	3
Results	Non-consolidated - Factors in Revenue and Expenditure Changes	4
for FY2022	Non-consolidated - Trends in Data and Effects of Changes	5
Consolidated - Factors in Revenue and Expenditure Changes	6
1Q YTD	Financial Results of each Company	7
Balance Sheet Comparison	8
Financial	Annual Outlook Summary	9
Non-consolidated - Revenue and Expenditure Forecasts, Factors in Changes	10
Outlook	Non-consolidated - Trends in Data and Effects of Changes (Forecasts)	11
Consolidated - Revenue and Expenditure Forecasts, Factors in Changes	12
for FY2022	Financial Outlook of each Company	13
	Outlook of Capex, Cash Flow and Interest-bearing Debt	14
	Trends of Coal CIF Price	15
	Trends of Crude Oil CIF Price	16
Reference	Trends of Exchange Rate	17
Trends of the Average Fuel Price	18
	Trends in Financial Indicators (Non-consolidated)	19
	Trends in Financial Indicators (Consolidated)	20

1

The Okinawa Electric

Power Company, Inc.

Financial Results for FY2022 1Q YTD

(Year-on-Year Comparison)

(Unit: million yen, X)

	Consolidated (A)		Non-consolidated (B)	(A) / (B)
	FY2021	FY2022		Rate of	FY2021	FY2022	Rate of	FY2021	FY2022
	1Q YTD	1Q YTD		1Q YTD	1Q YTD	1Q YTD	1Q YTD
		Change	Change
	(Results)	(Results)		(Results)	(Results)	(Results)	(Results)
Sales	36,610	48,452		＋32.3％	34,898	46,757	＋34.0％	1.05	1.04
Operating	-1,784	-9,349		－	-2,034	-9,280	－	－	－
income
Ordinary	-1,763	-9,344		－	-1,705	-9,045	－	－	－
income
Net income	*	*		－	-1,372	-6,596	－	－	－
-1,577	-6,899

* Net income attributable to owners of parent.

【Revenue】

• Increase in Sold power to other suppliers and income from the Fuel cost adjustment system in Electric business.

【Expenditure】

• Increase in Fuel costs and Purchased power costs due to fuel price rise in Electric business.

【Profit】

• Fuel prices rose sharply in a short period of time, and the resulting cost increases were not adequately reflected in the Electricity sales.
  As a result, profits deteriorated significantly in Electric business.

2

The Okinawa Electric

Power Company, Inc.

Trends in Electricity Sales Volume

Electricity Sales Volume

(Unit: million kWh, %)

	FY2021	FY2022		Rate of
	1Q YTD	1Q YTD	Change
	Change
	(Results)	(Results)
Lighting	664	624	-40	-6.0
Power	1,006	980	-26	-2.6
Total	1,670	1,604	-66	-4.0

• Power Generated and Received

(Unit: million kWh)

The demand for Lighting decreased compared with Year-on- Year due to the impact of customer switching to other suppliers and the lower temperature compared with previous year.

The demand for Power decreased compared with Year-on- Year due to the lower temperature compared with previous year and the impact of customer switching to other suppliers, despite weakened impact of the novel coronavirus.

		FY2021 1Q YTD	FY2022 1Q YTD		Rate of
		Electricity	Com-	Electricity	Com-	Change	• Power generated and received was 1,834 million kWh, down
		change
		generated	position	generated	position			0.5%. *
		ratio	ratio
						• Electricity generated of OEPC's Coal-fired thermal power was
	Coal	723	39.2%	704	38.4%	-19	-2.6%
	down 2.6%. *
OEPC	Oil	280	15.2%	197	10.7%	-83	-29.6%
down 29.6%. *
LNG	425	23.1%	517	28.2%	+92	+21.6%
								• Electricity generated of OEPC's Oil-fired thermal power was
								• Electricity generated of OEPC's LNG-fired thermal power was
	Total	1,428	77.5%	1,418	77.3%	-10	-0.7%
								up 21.6%. *
Other	415	22.5%	416	22.7%	+1	+0.2%
								*Comparison with the same period of the previous year.
	Total	1,843	100.0%	1,834	100.0%	-9	-0.5%

3

The Okinawa Electric

Power Company, Inc.

Non-consolidated

- Factors in Revenue and Expenditure Changes

(Unit: million yen)

		FY2021	FY2022	Change	Main factors in changes
		1Q YTD	1Q YTD
		(Results)	(Results)
Ordinary revenues	Electricity sales	31,131	38,617	+7,485	Fuel cost adjustment system +9,170	Electricity sales volume -1,438
Other income	4,402	8,639	+4,236	Sold power to other suppliers +3,834	Transmission revenue +434
	(Sales)	(34,898)	(46,757)	(+11,859)
	Total	35,534	47,256	+11,722
	Personnel costs	4,418	4,405	-13
	Fuel costs	10,639	22,590	+11,951	Unit price +11,849 (CIF +12,618	Exchange rate +2,238 Initial inventories -3,008)
	Quantity +180
	Repair and maintenance costs	4,557	4,754	+196	Thermal +322 Distribution +39	Internal combustion -167
Ordinary	Depreciation costs	5,363	4,536	-826	Distribution -310 Transmission -203	Thermal -152
(Effect of change in depreciation method (from declining-balance method to straight-line
					method) -1,097)
expenses					Thermal +3,956 Waste +1,490
Purchased power costs	5,576	12,989	+7,412
Grant under Act on Purchase of Renewable Energy Sourced Electricity deduction +1,530
	Interest expenses	249	211	-38	Average rate -54
	Tax and other public charges	1,748	1,792	+43	Enterprise tax +35
	Other expenses	4,687	5,022	+335	Gas supply business expenses +244 Business consignment expenses +107
	Non-current assets retirement costs -175
	(Operating expenses)	(36,932)	(56,038)	(+19,105)
	Total	37,240	56,302	+19,061
(Operating income)	(-2,034)	(-9,280)	(-7,246)
Ordinary income	-1,705	-9,045	-7,339
Income before income taxes	-1,705	-9,045	-7,339
Income taxes	-333	-2,448	-2,114
Net income	-1,372	-6,596	-5,224

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