Okinawa Electric Power Incorporated : Summary of the Settlement of Accounts for FY2023

Summary of the Settlement of

Accounts for FY2023

April 30, 2024

The Okinawa Electric Power Company, Inc.

The Okinawa Electric

Power Company, Inc.

Table of contents

	Financial Results for FY2023 (Year-on-Year Comparison)	2
	【Reference】 Main factors in Changes of Consolidated Ordinary Income	3
Financial	Financial Results for FY2023 (Comparison with previous forecasts(Jun.2024))	4
Trends in Electricity Sales Volume	5
Results	Non-consolidated - Factors in Revenue and Expenditure Changes	6
Non-consolidated - Trends in Data and Effects of Changes	7
for FY2023	Consolidated - Factors in Revenue and Expenditure Changes	8
Financial Results of each Company	9
	Balance Sheet Comparison	10
	State of Capex, Cash Flow and Interest-bearing Debt	11
Financial	Annual Outlook Summary	12
Non-consolidated - Revenue and Expenditure Forecasts, Factors in Changes	13
Outlook	Non-consolidated - Trends in Data and Effects of Changes (Forecasts)	14
for FY2024	Consolidated - Revenue and Expenditure Forecasts, Factors in Changes	15
Outlook of Capex, Cash Flow and Interest-bearing Debt	16
Shareholder	FY2023 Dividend and FY2024 Dividend Forecast	17
Return
Reference	Trends in Financial Indicators (Non-consolidated)	18
Trends in Financial Indicators (Consolidated)	19

1

The Okinawa Electric

Power Company, Inc.

Financial Results for FY2023

(Year-on-Year Comparison)

(Unit: million yen, X)

		Consolidated (A)			Non-consolidated (B)		(A) / (B)
	FY2022	FY2023	Change	Rate of	FY2022		FY2023	Change		Rate of	FY2022	FY2023
	(Results)	(Results)	Change	(Results)		(Results)		Change	(Results)	(Results)
Sales	223,517	236,394	12,876	+5.8％	213,383		225,609	12,226		+5.7％	1.05	1.05
Operating	-48,406	3,481	51,888	－	-50,582		1,027	51,610		－	ー	3.39
income
Ordinary	-48,799	2,568	51,367	－	-50,245		387	50,632		－	ー	6.63
income
Net income	-45,457*	2,391*	47,848	－	-45,934		1,200	47,135		－	ー	1.99

* Net income attributable to owners of parent.

Consolidated and Non-consolidated : Increase in Sales and Income for the first time in 6 years (First profit in 2 years)

【Revenue】

• Increase in Sales due to the price revision in Electric business.

【Expenditure】

• Decrease in Fuel costs and Purchased power costs due to lower fuel price in Electric business.
• Increase in Non-current assets retirement costs, due to the retirement of the damaged coal unloader at the Gushikawa Thermal Power Plant in Electric business.

2

The Okinawa Electric

Power Company, Inc.

【Reference】

Main factors in Changes of Consolidated Ordinary Income

(Unit:100 million yen)

■ Increase in Repair and maintenance costs	+17
■ Increase in Depreciation costs	+15

• Increase in Non-current assets retirement costs +15

Other 25

-47

-45

	Effect of Electricity	+447
	price revision
-487	+281	-124

Decrease in Sold

power to other suppliers

		■ Decrease in Fuel costs	-242
		■ Decrease in Purchased power costs	-205
FY2022	＋513	FY2023
Ordinary income	Ordinary income

3

The Okinawa Electric

Power Company, Inc.

Financial Results for FY2023

(Comparison with previous forecasts (Jan.2024))

													(Unit: million yen)
			Consolidated					Non-consolidated
	FY2023 (previous forecasts)		FY2023	Change	FY2023 (previous forecasts)		FY2023	Change
	May.	Aug.	Oct.		Jan.	Against	May.	Aug.	Oct.		Jan.	Against
		Results		Results
	2023	2023	2023		2024	Jan.2024	2023	2023	2023		2024	Jan.2024
Sales	234,700	234,400	240,300		237,500	236,394	-0.5%	222,900	222,600	228,800		226,800	225,609	-0.5%
Operating	6,800	5,100	4,100		3,800	3,481	-8.4%	5,700	4,000	3,000		2,700	1,027	-61.9%
income
Ordinary	5,600	4,100	3,100		3,100	2,568	-17.2%	4,500	3,000	2,000		2,000	387	-80.6%
income
Net income	*	*	*		*	*	+8.7%	3,500	2,400	1,700		1,700	1,200	-29.4%
4,000	2,900	2,200		2,200	2,391

* Net income attributable to owners of parent.

[Comparison with previous forecasts (Jan.2024) ]

• Decrease in Electricity sales due to decrease in Electricity sales volume in Electric business.
• Increase in expenses due to the impact of yen depreciation on Fuel costs and Purchased power costs in Electric business.
• Increase in Operating income in consolidated subsidiaries.

4

The Okinawa Electric

Power Company, Inc.

Trends in Electricity Sales Volume

Electricity Sales Volume

(Unit: million kWh, %)

	FY2022	FY2023	Change	Rate of
	(Results)	(Results)	Change
Lighting	2,842	2,714	-128	-4.5
Power	4,231	4,251	+20	+0.4
Total	7,073	6,965	-108	-1.5

【Reference】 Power Generated and Received

						(Unit: million kWh)
		FY2022	FY2023
						Change	Rate of
			Com-		Com-
		Electricity	Electricity	change
		position	position
		generated	generated
		ratio	ratio
	Coal	3,239	44.1%	2,470	34.2%	-769	-23.7%
OEPC	Oil	989	13.4%	1,016	14.1%	+27	+2.7%
LNG	1,651	22.5%	1,981	27.5%	+330	+20.0%
	Total	5,879	80.0%	5,467	75.8%	-412	-7.0%
Other	1,470	20.0%	1,750	24.2%	+280	+19.0%
	Total	7,349	100.0%	7,217	100.0%	-132	-1.8%

The demand for Lighting decreased compared with Year-on- Year due to the impact of power saving and customer switching to other suppliers.

Despite the impact of power saving and decreased demand in the industrial sector, the demand for Power remained almost unchanged from the previous year due to increase by customer switching to our company from other suppliers in the commercial sector and the recovery from the impact of novel coronavirus.

• Power generated and received was 7,217 million kWh, down by 1.8%. *
• Electricity generated of OEPC's Coal-fired thermal power was down by 23.7%. *
• Electricity generated of OEPC's Oil-fired thermal power was up by 2.7%. *
• Electricity generated of OEPC's LNG-fired thermal power was up by 20.0%. *

*Comparison with previous year.

5

The Okinawa Electric

Power Company, Inc.

Non-consolidated

- Factors in Revenue and Expenditure Changes

(Unit: million yen)

		FY2022	FY2023	Change	Rate of	Main factors in changes
		(Results)	(Results)	Change
						Electricity sales volume -2,387 Increased unit price +90,637
Ordinary	Electricity sales	171,462	169,798	-1,664	-1.0％	Fuel cost adjustment system -89,914
(Impact of lower fuel prices -64,197 Discount from the government's program of
						electricity price sharp fluctuation mitigation -25,717)
revenues	Other income	43,686	56,922	+13,236	+30.3％	Subsidies from the government's program of electricity price sharp fluctuation
mitigation +25,717 Sold power to other suppliers -12,468
	(Sales)	(213,383)	(225,609)	(+12,226)	(+5.7％)
	Total	215,148	226,721	+11,572	+5.4％
	Personnel costs	16,954	17,019	+65	+0.4％
	Fuel costs	118,678	94,426	-24,251	-20.4％	Quantity -12,149
	Unit price -13,367 (CIF -28,008 Exchange rate +4,984 Initial inventories +9,658)
	Repair and maintenance costs	18,383	20,100	+1,716	+9.3％	Distribution +1,024(Typhoon Recovery +697) Internal combustion +821
Ordinary	Depreciation costs	18,493	19,995	+1,501	+8.1％	Thermal +795 Internal combustion +295
Purchased power costs	60,790	40,269	-20,521	-33.8％	Grant under Act on Purchase of Renewable Energy Sourced Electricity deduction
expenses						Thermal -12,425
Tax and other public charges	7,630	7,554	-75	-1.0％	-7,107
	Interest expenses	1,062	1,597	+535	+50.5％	Average rate +294 Average balance +241
	Other expenses	23,400	25,368	+1,967	+8.4％	Non-current assets retirement costs +1,552
	(The coal unloader at the Gushikawa Thermal Power Plant +2,020)
	(Operating expenses)	(263,965)	(224,581)	(-39,384)	(-14.9％)
	Total	265,394	226,334	-39,060	-14.7％
(Operating income)	(-50,582)	(1,027)	(+51,610)	(－)
Ordinary income	-50,245	387	+50,632	－
Income before income taxes	-50,245	387	+50,632	－
Income taxes	-4,310	-813	+3,497	－
Net income	-45,934	1,200	+47,135	－

6

The Okinawa Electric

Power Company, Inc.

Non-consolidated

• Trends in Data and Effects of Changes
• • Main Data

			FY2022	FY2023	Rate of
			(Results)	(Results)	Change
Crude oil CIF price		$/bbl	102.7	86.0	-16.3%
Coal CIF price	*1	$/t	346.8	192.5	-44.5%
Exchange rate		Yen/$	135.5	144.6	+6.7%

*1 Our purchased prices.

■ Effects of Changes			(Unit:100 million yen)
			FY2022		FY2023
			(Results)		(Results)
Crude oil CIF price	*2,3	1$/bbl	5.1		6.9
Coal CIF price	*2	1$/t	1.9		1.8
Exchange rate	*2	1Yen/$	8.6		6.4
Electric energy demand	1%	0.0		4.4
Interest rate		1%	0.5		0.3

*2	Figures for effects of changes do not include data of Purchased power costs.
*3	Includes the effect of LNG.	7

The Okinawa Electric

Power Company, Inc.

Consolidated

- Factors in Revenue and Expenditure Changes

(Unit: million yen)

	FY2022	FY2023	Change	Rate of
	(Results)	(Results)	Change*2
Sales	223,517	236,394	+12,876	+5.8%
Operating	-48,406	3,481	+51,888	－
income
Ordinary	-48,799	2,568	+51,367	－
income
Net	-45,457	2,391	+47,848	－
income*

• Net income attributable to owners of parent..

• By Segment (before eliminating internal transactions)

(Unit: million yen)

	Electric	Construction	Other
	business	Business
Sales	225,609	24,617	34,877
(YoY change)	（+12,226）	（+417）	（+2,884）
Sales to outside	219,859	4,625	11,909
customers out of total
(YoY change)	（+11,780）	（-218）	（+1,315）
Operating income	1,027	1,008	2,211
(YoY change)	（+51,610）	（-192）	（+607）

• Sales : 236,394 (+12,876)
• Factors for increase 】
• Increase in Sales in Electric business.
• Operating income : 3,481(+51,888)
• Factors for increase 】
• Increase in Sales in Electric business.
• Decrease in Fuel costs in Electric business.
• Decrease in Purchased power costs in Electric business.
• Ordinary income : 2,568 (+51,367)

■ Net income*

: 2,391 (+47,848)

By segment

• In "Construction Business" segment, Sales increased due to increase in internal construction work, despite decrease in construction orders from private sector.
• In "Other" segment, Sales increased due to increase in internal construction work and energy service provider (ESP) business sales.

8

The Okinawa Electric

Power Company, Inc.

Financial Results of each Company

(Unit: million yen)

			Sales		Operating income	Ordinary income		Net income
		FY2022	FY2023	Change	FY2022	FY2023	Change	FY2022	FY2023	Change	FY2022	FY2023		Change
		(Results)	(Results)	(Results)	(Results)	(Results)	(Results)	(Results)	(Results)
The Okinawa Electric Power Company, Inc.	213,383	225,609	+12,226	-50,582	1,027	+51,610	-50,245	387	+50,632	-45,934	1,200		+47,135
	Okidenko Company, Ltd.	22,282	22,321	+39	1,010	805	-205	1,073	852	-220	745	596		-149
	Okiden Kigyo Company, Ltd.	4,788	5,902	+1,113	3	181	+178	27	205	+177	93	133		+39
	Okinawa Plant Kogyo Company, Inc.	10,770	11,073	+303	358	788	+429	375	836	+461	307	601		+293
	Okinawa Denki Kogyo Company, Inc.	960	1,091	+130	92	102	+10	118	148	+29	82	88		+5
O	Okiden Kaihatsu Company, Inc.	3,923	4,371	+447	628	519	-108	592	478	-113	343	327		-16
t	The Okiden Global Systems Company, Inc.	2,191	2,266	+74	25	146	+120	68	156	+87	102	101		-0
h
Okinawa Enetech Company, Inc.	1,273	1,124	-149	147	64	-82	154	76	-78	107	51		-56
e
r
Okinawa New Energy Development Company, Inc.	1,127	1,100	-26	115	-8	-123	107	-19	-126	76	-15		-92
	Okisetsubi Company, Ltd.	1,214	1,652	+437	41	133	+92	39	11	-27	27	7		-19
	FRT, Inc.	1,739	1,940	+201	133	138	+5	134	142	+7	38	92		+54
	Progressive Energy Corporation.	4,025	4,367	+342	106	164	+57	116	164	+48	88	115		+26
	The Reliance Energy Okinawa, Inc.	3,049	3,555	+506	142	173	+31	104	139	+34	80	109		+28
Reconciliations	-47,210	-49,982	-2,771	-627	-756	-128	-1,468	-1,012	+457	-1,617	-1,019		+599
Consolidated	223,517	236,394	+12,876	-48,406	3,481	+51,888	-48,799	2,568	+51,367	*	*		*
-45,457	2,391		+47,848

* Net income attributable to owners of parent.

9