J-POWER Medium-Term Management Plan FY2021-FY2023 (PDF:5.2MB)

J-POWER

Medium-Term Management Plan

FY2021-FY2023

April 30, 2021

Electric Power Development Co., Ltd.

Introduction	Medium-Term	Actions	Management goals	Appendix
Management Plan	/Shareholder Returns

Challenge to Create Value with an Eye on the Future

• With the mission of meeting people's needs for energy without fail and playing our part for the sustainable development of Japan and the rest of the world, J-POWER has been engaged in the hydroelectric, thermal, wind, and geothermal power generation business and the power transmission and transformation business1. To achieve this mission, J-POWER announced J-POWER "BLUE MISSION 2050" in February 2021, which has set a goal to be challenged of realizing carbon-neutral power generation business by 2050 and has also set the intermediate goal of reducing CO2 emissions by 40%2 by 2030.
• As a step in the challenge to realize carbon neutrality based on BLUE MISSION 2050, J-POWER has formulated a new Medium-Term Management Plan for the three years from FY2021 to FY20233.
  In the new Medium-Term Management Plan, J-POWER will take multifaceted approaches toward realizing carbon neutrality through creativity and ingenuity based on the comprehensive technical and development capabilities that it has cultivated so far. J-POWER will strive to increase its corporate value through working on the realization of carbon neutrality by combining three approaches: accelerating the development of CO2-free power sources in Japan and abroad, upcycling the existing assets, and challenging to new business areas.
• J-POWERwill build a solid business foundation that supports advancing these approaches while responding to society's requests for a stable power supply and strengthening resilience. While focusing on improved profitability and higher efficiency in asset management, J-POWER will realize sustainable growth by promoting ESG management, share the results with all stakeholders, and contribute to sustainable social development.

Toshifumi Watanabe

Representative Director

President and Chief Executive Officer

1. From the standpoint of ensuring the neutrality of power transmission companies, our transmission and transformation business is operated by J-POWER Transmission Network Co., Ltd. (hereinafter, "J- POWER Transmission"), a wholly-owned subsidiary of J-POWER.
2. CO2 emissions from J-POWER's domestic power generation business (compared to the 3-year average of actual emissions in FY2017-FY2019)
3. The FY2015-FY2025Medium-Term Management Plan announced on July 31, 2015 was replaced with this new plan. In FY2015-FY2020, the first-half period of the old plan, J-POWER obtained desired results such as expanding power supply capacity in Japan and abroad and developing technologies to address the climate change issues. J-POWER also started new initiatives such as the electric power

retailing business and the development of offshore wind power in Japan and abroad.	1
* In this presentation material, "J-POWER" refers to J-POWER Group

Sakuma Hydroelectric Power Plant

Hamamatsu City, Shizuoka

Medium-Term Management Plan

FY2021-FY2023

2

Introduction	Medium-Term	Actions	Management goals	Appendix
Management Plan	/Shareholder Returns

The Goal of the Medium-Term Management Plan

J-POWER aims to increase its corporate value through challenging the transition toward realizing carbon neutrality in 2050. These initiatives in FY2021-FY2023 have been summarized in the framework of the Medium-Term Management Plan.

Long-term direction

1

Transition to carbon neutrality

Action plans

	2021-2023			2030

Constant supply of CO2-free energy to realize a sustainable society

Global growth through creativity and ingenuity based on our technology and experience

CO2 emission reductions

2050

BLUE

MISSION

2

Acceleration

-40%*

Incremental, multifaceted approaches

Enhancement of business foundation

3

Business foundation to support future initiatives

Upcycling	Accelerating	Steadily promoting
	renewable energy	the Ohma Nuclear
	developments
Challenges to new business areas	Power Plant Project
globally
	Starting the transition	Enhancement of
	to hydrogen power
	power networks
	generation
	Production and
Promotion of ESG management	supply of CO2-free
hydrogen, etc.

Improved profitability and higher efficiency in asset management

Expansion of overseas business foundation

* CO2 emissions from J-POWER's domestic power generation business (compared to the 3-year average of actual emissions in FY2017-FY2019)

3

Introduction	Medium-Term	Actions	Management goals	Appendix
Management Plan	/Shareholder Returns

Multifaceted Approaches

J-POWER has accumulated many achievements in Japan and abroad, building a balanced business portfolio.

J-POWER will take multifaceted approaches toward realizing carbon neutrality by leveraging the comprehensive technical and development capabilities that it has cultivated so far.

Balanced business portfolio

J-POWER has power generation facilities such as hydroelectric, thermal, wind, and geothermal, and has transmission and transformation facilities*, constituting a balanced portfolio. J-POWER also has comprehensive technical capabilities ranging from fuel procurement to facility siting, construction, operation, and maintenance.

Based on its achievements in Japan, J-POWER is also involved with overseas consulting business and power generation business for more than half a century.

Overseas hydro and

others 2.2%

Overseas total

26.2%

Overseas gas-fired	Hydro 34.5%
thermal 20.5%
	J-POWER
	Power generation
Overseas coal-fired	facilities in
thermal 3.6%	operation
Gas-fired	As of Mar. 31, 2021
thermal 0.9%	On an owned
	capacity basis

A track record of projects and technology developments

Global renewable energy developments

J-POWER has been expanding its overseas business for more than half a century. By leveraging these business foundations and the technical and development capabilities it has cultivated, J- POWER is also actively working on new renewable energy development such as solar and wind.

Japan's top runner in the wind power business

J-POWER started wind power generation early in Japan. As of Mar. 31, 2021, J-POWER owns a capacity of 540,060kW at 23 locations in Japan (owned capacity basis, the second largest in Japan), with further expansion currently underway.

CO2-free nuclear power

J-POWER promotes the Ohma Nuclear Power Plant Project as a CO2-free power source that can stably generate a large amount of electric power, with its safety as a major prerequisite.

R&D of hydrogen production from coal

J-POWER's successful research and development of coal gasification and CO2 separation and capture for many years made it possible to produce hydrogen from coal. J-POWER will continue to study the utilization and storage of CO2, aiming to produce CO2- free hydrogen.

Wind 2.2%

Geothermal 0.1%

Coal-fired thermal 36.2%

Transmission and transformation facilities* contributing to the expansion of renewable energy

J-POWER Transmission has power network facilities that play essential roles in spreading renewable energy, such as submarine DC cables and frequency converter stations. The company has high levels of technology and track records in construction and maintenance.

4

* J-POWER Transmission operates our transmission and transformation business