Okinawa Electric Power Incorporated : Summary of the Settlement of Accounts for FY2022 2nd Quarter

Summary of the Settlement of

Accounts for FY2022 2nd Quarter

(April 1 - September 30, 2022)

November 1, 2022

The Okinawa Electric Power Company, Inc.

The Okinawa Electric

Power Company, Inc.

Table of contents

Financial	Financial Results for FY2022 2Q YTD (Year-on-Year Comparison)	2
Trends in Electricity Sales Volume	3
Results	Non-consolidated - Factors in Revenue and Expenditure Changes	4
Non-consolidated - Trends in Data and Effects of Changes	5
for FY2022	Consolidated - Factors in Revenue and Expenditure Changes	6
2Q YTD	Financial Results of each Company	7
Balance Sheet Comparison	8
	State of Capex, Cash Flow and Interest-bearing Debt	9
	Annual Outlook Summary	10
Financial	Non-consolidated - Revenue and Expenditure Forecasts, Factors in Changes I	11
Non-consolidated - Revenue and Expenditure Forecasts, Factors in Changes II	12
Outlook	Non-consolidated - Trends in Data and Effects of Changes (Forecasts)	13
for FY2022	Consolidated - Revenue and Expenditure Forecasts, Factors in Changes	14
Financial Outlook of each Company	15
	Outlook of Capex, Cash Flow and Interest-bearing Debt	16
	Trends of Coal CIF Price	17
	Trends of Crude Oil CIF Price	18
Reference	Trends of Exchange Rate	19
Trends of the Average Fuel Price	20
	Trends in Financial Indicators (Non-consolidated)	21
	Trends in Financial Indicators (Consolidated)	22

1

The Okinawa Electric

Power Company, Inc.

Financial Results for FY2022 2Q 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
	2Q YTD	2Q YTD		2Q YTD	2Q YTD	2Q YTD	2Q YTD
		Change	Change
	(Results)	(Results)		(Results)	(Results)	(Results)	(Results)
Sales	87,782	118,738		＋35.3％	84,258	114,888	+36.4％	1.04	1.03
Operating	5,155	-22,518		－	4,545	-22,905	－	1.13	ー
income
Ordinary	5,074	-22,473		－	4,672	-22,709	－	1.09	ー
income
Net income	*	*		－	3,761	-16,871	－	1.02	ー
3,847	-16,819

* 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 soaring fuel prices in Electric business.

【Profit】

• Profit deteriorated significantly in Electric business because some of the increased costs associated with soaring fuel prices have not been reflected in Electricity sales.

2

The Okinawa Electric

Power Company, Inc.

Trends in Electricity Sales Volume

Electricity Sales Volume

(Unit: million kWh, %)

	FY2021	FY2022		Rate of
	2Q YTD	2Q YTD	Change
	Change
	(Results)	(Results)
Lighting	1,579	1,580	+1	+0.1
Power	2,244	2,297	+53	+2.3
Total	3,823	3,877	+54	+1.4

• Power Generated and Received

(Unit: million kWh)

The demand for Lighting remained almost unchanged from the previous year due the higher temperature in summer compared with previous year, despite the impact of customer switching to other suppliers.

The demand for Power increased compared with Year-on- Year due to the weakening impact of the novel coronavirus.

		FY2021 2Q YTD	FY2022 2Q YTD		Rate of
		Electricity	Com-	Electricity	Com-	Change	• Power generated and received was 4,192 million kWh,
		change
		generated	position	generated	position			up 2.5%. *
		ratio	ratio
						• Electricity generated of OEPC's Coal-fired thermal power was
	Coal	1,785	43.7%	1,830	43.7%	+45	+2.5%
	up 2.5%. *
OEPC	Oil	601	14.6%	548	13.0%	-53	-8.8%
down 8.8%. *
LNG	902	22.1%	954	22.8%	+52	+5.8%
								• Electricity generated of OEPC's Oil-fired thermal power was
								• Electricity generated of OEPC's LNG-fired thermal power was
	Total	3,288	80.4%	3,332	79.5%	+44	+1.3%
								up 5.8%. *
Other	800	19.6%	860	20.5%	+60	+7.5%
*Comparison with the same period of the previous year.
	Total	4,088	100.0%	4,192	100.0%	+104	+2.5%

3

The Okinawa Electric

Power Company, Inc.

Non-consolidated

- Factors in Revenue and Expenditure Changes

							(Unit: million yen)
		FY2021	FY2022	Change	Rate of	Main factors in changes
		2Q YTD	2Q YTD	change
		(Results)	(Results)
Ordinary revenues	Electricity sales	74,930	94,738	+19,807	+26.4%	Fuel cost adjustment system +19,442	Electricity sales volume +1,016
Other income	10,016	20,820	+10,804	+7.9%	Sold power to other suppliers +9,088	Transmission revenue +1,424
	(Sales)	(84,258)	(114,888)	(+30,630)	(+36.4%)
	Total	84,946	115,559	+30,612	+36.0%
	Personnel costs	8,820	8,569	-251	-2.9%	Salary and benefits -194
	Fuel costs	25,674	63,390	+37,715	+146.9%	Unit price +37,022 (CIF +36,408 Exchange rate +7,105 Initial inventories -6,491)
	Quantity +775
	Repair and maintenance costs	8,909	9,436	+527	+5.9%	Thermal +553 Distribution -43
Ordinary	Depreciation costs	11,039	9,163	-1,875	-17.0%	Effect of change in depreciation method (from declining-balance method to straight-
Thermal +12,347 Waste +2,527
						line method) -2,262
expenses	Purchased power costs	12,234	32,586	+20,351	+166.3%	Grant under Act on Purchase of Renewable Energy Sourced Electricity deduction
Interest expenses	469	414	-55	-11.9%	Average rate -92
						+4,094
	Tax and other public charges	3,857	4,050	+192	+5.0%	Enterprise tax +95
	Other expenses	9,267	10,657	+1,390	+15.0%	Gas supply business expenses +622
	(Operating expenses)	(79,712)	(137,793)	(+58,081)	(+72.9%)
	Total	80,274	138,268	+57,993	+72.2%
(Operating income)	(4,545)	(-22,905)	(-27,451)	（ ‐ ）
Ordinary income	4,672	-22,709	-27,381	‐
Income before income taxes	4,672	-22,709	-27,381	‐
Income taxes	910	-5,837	-6,748	‐
Net income	3,761	-16,871	-20,633	‐

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