Okinawa Electric Power Incorporated : FY2023 2nd

Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Six Months Ended September 30, 2023

[Japanese GAAP]

October 31, 2023

Company name: The Okinawa Electric Power Company, Incorporated

Stock exchange listing: Tokyo, Fukuoka
Code number: 9511
URL: https://www.okiden.co.jp/
Representative: Hiroyuki Motonaga	, President
Contact: Hiroshi Kinjo	, Accounting & Finance Department Accounting Group Manager

Phone: [phone]

Scheduled date of filing quarterly securities report: November 13, 2023

Scheduled date of commencing dividend payments: December 1, 2023

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the Six Months Ended September 30, 2023 (April 1, 2023 to September 30, 2023)

(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period.)
	Net sales		Operating profit		Ordinary profit		Profit attributable to
				owners of parent
Six months ended	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen		%
September 30, 2023	130,501		9.9	4,704		-	4,216		-	3,238		-
September 30, 2022	118,738		35.3	(22,518)		-	(22,473)		-	(16,819)		-

(Note) Comprehensive income:	Six months ended September 30, 2023:
	Six months ended September 30, 2022:

¥	3,718 million	[	-%]
¥	(16,795) million	[	-%]

	Basic earnings			Diluted earnings per
	per share			share
Six months ended		Yen		Yen
September 30, 2023	59.62		-
September 30, 2022	(309.69)		-
(2) Consolidated Financial Position
	Total assets			Net assets	Capital adequacy ratio
As of	Millions of yen		Millions of yen	%
September 30, 2023	496,423			118,208	23.4
March 31, 2023	480,546			114,495	23.4
(Reference) Equity: As of	September 30, 2023:	¥	116,288 million
As of	March 31, 2023:	¥	112,610 million

2. Dividends

				Annual dividends
	1st		2nd		3rd		Year-end	Total
	quarter-end		quarter-end		quarter-end
	Yen		Yen		Yen		Yen	Yen
Fiscal year ended March 31, 2023	-		0.00		-		0.00	0.00
Fiscal year ending March 31, 2024	-		5.00
Fiscal year ending March 31, 2024(Forecast)					-		5.00	10.00
(Note) Revision to the forecast for dividends announced most recently:	No

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2024(April 1, 2023 to March 31, 2024)

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Basic earnings

owners of parent

per share

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Full year

240,300

7.5

4,100

-

3,100

-

2,200

-

40.51

(Note) Revision to the financial results forecast announced most recently:

Yes

* Notes:

(1) Changes in significant subsidiaries during the six months ended September 30, 2023

(changes in specified subsidiaries resulting in changes in scope of consolidation):

No

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:

Yes

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: No
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

September 30, 2023:	56,927,965	shares
March 31, 2023:	56,927,965	shares

2) Number of treasury shares at the end of the period:

September 30, 2023:	2,615,807	shares
March 31, 2023:	2,616,868	shares

3) Average number of shares outstanding during the period:
Six months ended September 30, 2023:	54,311,443	shares
Six months ended September 30, 2022:	54,311,701	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

		(Millions of yen)
	As of March 31, 2023	As of September 30, 2023
Assets
Non-current assets	402,215	404,290
Electric utility plant and equipment	299,788	304,198
Thermal power production facilities	84,152	90,210
Internal combustion engine power production	19,413	18,716
facilities
Transmission facilities	55,579	54,906
Transformation facilities	41,194	39,997
Distribution facilities	85,448	85,736
General facilities	13,260	12,823
Other electric utility plant and equipment	739	1,807
Other non-current assets	33,909	34,065
Construction in progress	38,061	35,337
Construction and retirement in progress	38,061	35,337
Investments and other assets	30,455	30,688
Long-term investments	8,281	8,945
Retirement benefit asset	3,016	2,779
Deferred tax assets	15,856	15,759
Other	3,356	3,252
Allowance for doubtful accounts	(55)	(48)
Current assets	78,331	92,133
Cash and deposits	19,059	21,993
Notes and accounts receivable - trade	13,521	21,636
Inventories	20,058	20,962
Other	25,804	27,722
Allowance for doubtful accounts	(112)	(181)
Total	480,546	496,423

		(Millions of yen)
	As of March 31, 2023	As of September 30, 2023
Liabilities and net assets
Non-current liabilities	296,337	304,167
Bonds payable	135,000	140,000
Long-term borrowings	129,769	133,814
Lease liabilities	18,591	17,706
Retirement benefit liability	11,882	11,547
Other	1,095	1,098
Current liabilities	69,713	74,047
Current portion of non-current liabilities	19,039	19,560
Short-term borrowings	2,220	5,330
Commercial papers	-	5,000
Notes and accounts payable - trade	16,801	15,105
Accrued taxes	1,845	2,634
Other	29,807	26,417
Total liabilities	366,050	378,214
Shareholders' equity	109,873	113,113
Share capital	7,586	7,586
Capital surplus	7,278	7,278
Retained earnings	100,403	103,641
Treasury shares	(5,395)	(5,393)
Accumulated other comprehensive income	2,737	3,175
Valuation difference on available-for-sale	2,440	2,877
securities
Deferred gains or losses on hedges	37	86
Remeasurements of defined benefit plans	259	211
Non-controlling interests	1,884	1,919
Total net assets	114,495	118,208
Total	480,546	496,423

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

		(Millions of yen)
	For the six months	For the six months
	ended September 30, 2022	ended September 30, 2023
Operating revenue	118,738	130,501
Electric utility operating revenue	112,295	122,550
Other business operating revenue	6,443	7,950
Operating expenses	141,256	125,797
Electric utility operating expenses	135,178	118,303
Other business operating expenses	6,078	7,493
Operating profit (loss)	(22,518)	4,704
Non-operating income	561	450
Dividend income	120	113
Interest income	1	0
Gain on sale of goods	125	100
Share of profit of entities accounted for using equity	170	120
method
Other	143	114
Non-operating expenses	516	938
Interest expenses	444	837
Other	71	100
Total ordinary revenue	119,299	130,952
Total ordinary expenses	141,773	126,735
Ordinary profit (loss)	(22,473)	4,216
Profit (loss) before income taxes	(22,473)	4,216
Income taxes	(5,689)	939
Profit (loss)	(16,784)	3,277
Profit attributable to non-controlling interests	35	39
Profit (loss) attributable to owners of parent	(16,819)	3,238

Quarterly Consolidated Statements of Comprehensive Income (For the six months)

		(Millions of yen)
	For the six months	For the six months
	ended September 30, 2022	ended September 30, 2023
Profit (loss)	(16,784)	3,277
Other comprehensive income

Valuation difference on available-for-sale securities

Deferred gains or losses on hedges

Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using equity method

Total other comprehensive income

Comprehensive income

Comprehensive income attributable to Comprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

79	439
(3)	49
(87)	(47)
0	-
(11)	440
(16,795)	3,718

(16,831)3,676

35

42

Quarterly Consolidated Statements of Cash Flows

		(Millions of yen)
	For the six months	For the six months
	ended September 30, 2022	ended September 30, 2023
Cash flows from operating activities
Profit (loss) before income taxes	(22,473)	4,216
Depreciation	9,876	10,547
Loss on retirement of non-current assets	222	438
Increase (decrease) in retirement benefit liability	92	(334)
Decrease (increase) in retirement benefit asset	(41)	237
Interest and dividend income	(122)	(114)
Interest expenses	444	837
Decrease (increase) in trade receivables	(7,202)	(8,115)
Decrease (increase) in inventories	(15,682)	(888)
Increase (decrease) in trade payables	7,082	(1,696)
Other, net	1,485	(1,622)
Subtotal	(26,318)	3,506
Interest and dividends received	137	123
Interest paid	(455)	(853)
Income taxes refund (paid)	381	(504)
Net cash provided by (used in) operating activities	(26,254)	2,272
Cash flows from investing activities
Purchase of non-current assets	(19,861)	(16,995)
Proceeds from sale of non-current assets	124	156
Investments and loan advances	(217)	(56)
Proceeds from divestments and collection of loans	18	17
receivable
Other, net	1,198	840
Net cash provided by (used in) investing activities	(18,737)	(16,037)
Cash flows from financing activities
Proceeds from issuance of bonds	19,958	9,973
Redemption of bonds	(10,000)	-
Proceeds from long-term borrowings	17,471	10,490
Repayments of long-term borrowings	(5,675)	(10,900)
Net increase (decrease) in short-term borrowings	7,752	3,110
Net increase (decrease) in commercial papers	24,000	5,000
Dividends paid	(1,629)	(2)
Other, net	(932)	(912)
Net cash provided by (used in) financing activities	50,944	16,758
Net increase (decrease) in cash and cash equivalents	5,952	2,994
Cash and cash equivalents at beginning of period	20,374	18,869
Cash and cash equivalents at end of period	26,326	21,863