Okinawa Electric Power Incorporated : Summary of the Settlement of Accounts for FY2023 1st Quarter

Summary of the Settlement of Accounts for FY2023 1st Quarter

(April 1 - June 30, 2023)

July 28, 2023

The Okinawa Electric Power Company, Inc.

The Okinawa Electric

Power Company, Inc.

Table of contents

Financial	Financial Results for FY2023 1Q YTD (Year-on-Year Comparison)	2
Trends in Electricity Sales Volume	3
Results	Non-consolidated - Factors in Revenue and Expenditure Changes	4
for FY2023	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

Outlook

for FY2023

Annual Outlook Summary	9

Reference

Trends in Financial Indicators (Non-consolidated)	10
Trends in Financial Indicators (Consolidated)	11

1

The Okinawa Electric

Power Company, Inc.

Financial Results for FY2023 1Q YTD

(Year-on-Year Comparison)

(Unit: million yen, X)

	Consolidated (A)		Non-consolidated (B)	(A) / (B)
	FY2022	FY2023		Rate of	FY2022	FY2023	Rate of	FY2022	FY2023
	1Q YTD	1Q YTD		1Q YTD	1Q YTD	1Q YTD	1Q YTD
		Change	Change
	(Results)	(Results)		(Results)	(Results)	(Results)	(Results)
Sales	48,452	53,778		＋11.0％	46,757	51,502	＋10.1％	1.04	1.04
Operating	-9,349	-5,405		－	-9,280	-5,813	－	－	－
income
Ordinary	-9,344	-5,528		－	-9,045	-5,631	－	－	－
income
Net income	*	*		－	-6,596	-5,632	－	－	－
-6,899	-5,701

* Net income attributable to owners of parent.

【Revenue】

• Increase in income from the price revision in Electric business.

【Expenditure】

• Increase in Repair and maintenance costs and Fuel costs in Electric business.

2

The Okinawa Electric

Power Company, Inc.

Trends in Electricity Sales Volume

Electricity Sales Volume

(Unit: million kWh, %)

	FY2022	FY2023		Rate of
	1Q YTD	1Q YTD	Change
	Change
	(Results)	(Results)
Lighting	624	589	-35	-5.7
Power	980	981	+1	+0.2
Total	1,604	1,570	-34	-2.1

• 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 in late April compared with previous year.

The demand for Power remained almost unchanged from the previous year due to increase by recovery from the impact of the novel coronavirus, despite decrease in demand from the steel industry.

		FY2022 1Q YTD	FY2023 1Q YTD		Rate of
		Electricity	Com-	Electricity	Com-	Change	• Power generated and received was 1,755 million kWh, down
		change
		generated	position	generated	position			2.4%. *
		ratio	ratio
						• Electricity generated of OEPC's Coal-fired thermal power was
	Coal	704	39.1%	623	35.6%	-81	-11.5%
	down 11.5%. *
OEPC	Oil	197	11.0%	255	14.5%	+58	+29.4%
29.4%. *
LNG	517	28.7%	399	22.7%	-118	-22.8%
								• Electricity generated of OEPC's Oil-fired thermal power was up
								• Electricity generated of OEPC's LNG-fired thermal power was
	Total	1,418	78.8%	1,277	72.8%	-141	-9.9%
								down 22.8%. *
Other	381	21.2%	478	27.2%	+97	+25.5%
								*Comparison with the same period of the previous year.
	Total	1,799	100.0%	1,755	100.0%	-44	-2.4%

3

The Okinawa Electric

Power Company, Inc.

Non-consolidated

- Factors in Revenue and Expenditure Changes

(Unit: million yen)

		FY2022	FY2023	Change	Main factors in changes
		1Q YTD	1Q YTD
		(Results)	(Results)
Ordinary	Electricity sales	38,617	38,349	-268	Increased unit price +9,533(Impact of Electricity price revision)
Electricity sales volume -788	Fuel cost adjustment system -9,012 (Discount from the
					government's program of electricity price sharp fluctuation mitigation	-6,175)
revenues	Other income	8,639	13,775	+5,136	Other electricity revenue +6,273(Subsidies from the government's program of electricity
price sharp fluctuation mitigation	+6,175)
(Sales)	(46,757)	(51,502)	(+4,745)
	Total	47,256	52,125	+4,868
	Personnel costs	4,405	4,116	-288	Salary and benefits -299
	Fuel costs	22,590	23,167	+576	Unit price +2,990 (Initial inventories +6,627 Exchange rate +2,162	CIF -5,799)
	Quantity -2,741
Ordinary	Repair and maintenance costs	4,754	5,624	+870	Thermal +553 Internal combustion +203
Depreciation costs	4,536	4,883	+346	Thermal +2,143
	Thermal +225 Transmission +49
expenses	Purchased power costs	12,989	12,280	-708	Electric power development promotion tax -22
Tax and other public charges	1,792	1,770	-21
					Grant under Act on Purchase of Renewable Energy Sourced Electricity deduction -2,476
	Interest expenses	211	399	+188	Average rate +111 Average balance +76
	Other expenses	5,022	5,513	+490	Gas supply business expenses +245 Non-current assets retirement costs +154
	(Operating expenses)	(56,038)	(57,316)	(+1,278)
	Total	56,302	57,756	+1,454
(Operating income)	(-9,280)	(-5,813)	(+3,466)
Ordinary income	-9,045	-5,631	+3,413
Income before income taxes	-9,045	-5,631	+3,413
Income taxes	-2,448	0	+2,449
Net income	-6,596	-5,632	+964

4