Okinawa Electric Power Incorporated : Summary of the Settlement of Accounts for FY2023 2nd Quarter

Summary of the Settlement of

Accounts for FY2023 2nd Quarter

(April 1 - September 30, 2023)

October 31, 2023

The Okinawa Electric Power Company, Inc.

The Okinawa Electric

Power Company, Inc.

Table of contents

Financial	Financial Results for FY2023 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 FY2023	Consolidated - Factors in Revenue and Expenditure Changes	6
Financial Results of each Company	7
2Q YTD
Balance Sheet Comparison	8
State of Capex, Cash Flow and Interest-bearing Debt	9
Financial	Annual Outlook Summary	10
Non-consolidated - Revenue and Expenditure Forecasts, Factors in Changes I	11
Outlook	Non-consolidated - Revenue and Expenditure Forecasts, Factors in Changes II	12
Non-consolidated - Trends in Data and Effects of Changes (Forecasts)	13
for FY2023	Consolidated - Revenue and Expenditure Forecasts, Factors in Changes	14
Outlook of Capex, Cash Flow and Interest-bearing Debt	15
Reference	Trends in Financial Indicators (Non-consolidated)	16
Trends in Financial Indicators (Consolidated)	17

1

The Okinawa Electric

Power Company, Inc.

Financial Results for FY2023 2Q 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
	2Q YTD	2Q YTD		2Q YTD	2Q YTD	2Q YTD	2Q YTD
		Change	Change
	(Results)	(Results)		(Results)	(Results)	(Results)	(Results)
Sales	118,738	130,501		＋9.9％	114,888	125,604	＋9.3％	1.03	1.04
Operating	-22,518	4,704		－	-22,905	4,026	－	－	1.17
income
Ordinary	-22,473	4,216		－	-22,709	3,814	－	－	1.11
income
Net income	*	*		－	-16,871	3,106	－	－	1.04
-16,819	3,238

* Net income attributable to owners of parent.

【Revenue】

Increase in income from the price revision in Electric business.

【Expenditure】

Decrease in Fuel costs and purchased power costs due to fuel price fall in Electric business.

Increase in Non-current assets retirement costs,due to impact of the damage to the coal unloader at the Gushikawa Thermal Power Plant 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
	2Q YTD	2Q YTD	Change
	Change
	(Results)	(Results)
Lighting	1,580	1,468	-112	-7.1
Power	2,297	2,275	-22	-1.0
Total	3,877	3,743	-134	-3.5

• Power Generated and Received

						(Unit: million kWh)
		FY2022 2Q YTD	FY2023 2Q YTD
						Change	Rate of
			Com-		Com-
		Electricity	Electricity	change
		position	position
		generated	generated
		ratio	ratio
	Coal	1,830	44.0%	1,460	36.1%	-370	-20.2%
OEPC	Oil	548	13.2%	636	15.7%	+88	+16.1%
LNG	954	23.0%	1,073	26.5%	+119	+12.5%
	Total	3,332	80.2%	3,169	78.3%	-163	-4.9%
Other	824	19.8%	878	21.7%	+54	+6.6%
	Total	4,156	100.0%	4,047	100.0%	-109	-2.6%

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

The demand for Power decreased compared with Year-on- Year due to the impact of the power saving and decreased demand in steel industry, despite increase by customer switching to our company from other suppliers and the recovery from the impact of novel coronavirus.

• Power generated and received was 4,047 million kWh, down 2.6%. *
• Electricity generated of OEPC's Coal-fired thermal power was down 20.2%. *
• Electricity generated of OEPC's Oil-fired thermal power was up 16.1%. *
• Electricity generated of OEPC's LNG-fired thermal power was up 12.5%. *

*Comparison with the same period of the previous year.

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
		2Q YTD	2Q YTD
		(Results)	(Results)
Ordinary		94,738	91,299	-3,438	Increased unit price +42,472	Electricity sales volume -3,093
Electricity sales	Fuel cost adjustment system -42,817 (Discount from the government's program of
					electricity price sharp fluctuation mitigation -19,543)
revenues	Other income	20,820	34,972	+14,151	Other electricity revenue +19,753(Subsidies from the government's program of electricity
price sharp fluctuation mitigation +19,543)
(Sales)	(114,888)	(125,604)	(+10,715)
	Total	115,559	126,272	+10,713
	Personnel costs	8,569	8,752	+183
	Fuel costs	63,390	54,243	-9,146	Quantity -5,081
	Unit price -4,724 (CIF -18,183	Exchange rate +2,660 Initial inventories +10,800)
Ordinary	Repair and maintenance costs	9,436	9,540	+103	Distribution +690(Typhoon Recovery+661) Thermal -460
Purchased power costs	32,586	22,408	-10,178	Thermal +404 Transmission +99
	Depreciation costs	9,163	9,797	+634
					Thermal -4,183
expenses					Grant under Act on Purchase of Renewable Energy Sourced Electricity deduction -4,783
Interest expenses	414	807	+392	Average rate +256
	Tax and other public charges	4,050	4,052	+2
	Other expenses	10,657	12,855	+2,198	Non-current assets retirement costs +1,959(The coal unloader at the Gushikawa Thermal
	Power Plant +1,756)
	(Operating expenses)	(137,793)	(121,577)	(-16,216)
	Total	138,268	122,457	-15,810
(Operating income)	(-22,905)	(4,026)	(+26,931)
Ordinary income	-22,709	3,814	+26,523
Income before income taxes	-22,709	3,814	+26,523
Income taxes	-5,837	707	+6,545
Net income	-16,871	3,106	+19,978

4

The Okinawa Electric

Power Company, Inc.

Non-consolidated

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

			FY2022 2Q YTD	FY2023 2Q YTD	Change
			(Results)	(Results)
Crude oil CIF price		$/bbl	111.9	83.5	-25.4％
Coal CIF price	*1	$/t	361.2	203.0	-43.8％
Exchange rate		Yen/$	134.0	141.1	+5.2％

*1 Our purchased prices.

■ Effects of Changes			(Unit:100 million yen)
			FY2022 2Q YTD	FY2023 2Q YTD
			(Results)	(Results)
Crude oil CIF price	*2,3	1$/bbl	2.5	3.9
Coal CIF price	*2	1$/t	1.0	1.0
Exchange rate	*2	1Yen/$	4.7	3.8
Electric energy demand	1%	0.2	2.6
Interest rate		1%	0.2	0.1

*2	Figures for effects of changes do not include data of Purchased power costs.
*3	Includes the effect of LNG.	5

The Okinawa Electric

Power Company, Inc.

Consolidated

- Factors in Revenue and Expenditure Changes

(Unit: million yen)

	FY2022	FY2023	Change	Rate of
	2Q YTD	2Q YTD
	Change
	(Results)	(Results)
Sales	118,738	130,501	+11,763	+9.9%
Operating	-22,518	4,704	+27,223	－
income
Ordinary	-22,473	4,216	+26,690	－
income
Net	-16,819	3,238	+20,057	－
income*

• Net income attributable to owners of parent.

• By Segment (before eliminating internal transactions)

(Unit: million yen)

	Electric	Construction	Other
	business	Business
Sales	125,604	9,913	16,248
(YoY change)	（+10,715）	（-853）	（+1,331）
Sales to outside	122,621	2,096	5,783
customers out of total
(YoY change)	（+10,262）	（+550）	（+950）
Operating income	4,026	76	651
(YoY change)	（+26,931）	（-110）	（+321）

• Sales : 130,501 (+11,763)
• Factors for increase 】
• Increase in Sales in Electric business.
• Operating income : 4,704 (+27,223)

• Factors for increase 】

• Increase in Sales in Electric business.
• Decrease in Purchased power costs in Electric business.
• Decrease in Fuel costs in Electric business.
• Ordinary income : 4,216(+26,690)

■ Net income*

: 3,238 (+20,057)

By segment

• In "Construction Business" segment, Sales decreased due to decrease in internal construction work, despite increase in construction orders from private sector.
• In "Other" segment, Sales increased due to increase in internal construction work and gas supply business.

6

The Okinawa Electric

Power Company, Inc.

Financial Results of each Company

(Unit: million yen)

			Sales		Operating income	Ordinary income		Net income
		FY2022	FY2023		FY2022	FY2023		FY2022	FY2023		FY2022		FY2023
		2Q YTD	2Q YTD	Change	2Q YTD	2Q YTD	Change	2Q YTD	2Q YTD	Change	2Q YTD		2Q YTD		Change
		(Results)	(Results)		(Results)	(Results)		(Results)	(Results)		(Results)		(Results)
The Okinawa Electric Power Company, Inc.	114,888	125,604	+10,715	-22,905	4,026	+26,931	-22,709	3,814	+26,523	-16,871		3,106		+19,978
	Okidenko Company, Ltd.	10,248	8,947	-1,301	217	18	-199	267	67	-200	187		47		-140
	Okiden Kigyo Company, Ltd.	2,572	2,706	+133	-33	3	+36	-16	19	+35	-6		10		+17
	Okinawa Plant Kogyo Company, Inc.	4,990	5,044	+54	113	200	+86	128	212	+83	86		151		+64
	Okinawa Denki Kogyo Company, Inc.	366	514	+147	-18	43	+61	3	65	+61	11		34		+22
O	Okiden Kaihatsu Company, Inc.	1,790	1,941	+150	225	219	-6	206	203	-2	135		134		-1
t	The Okiden Global Systems Company, Inc.	812	826	+14	-83	-44	+39	-78	-38	+40	-40		-25		+14
h
Okinawa Enetech Company, Inc.	342	353	+11	-13	13	+26	-11	20	+32	-7		13		+21
e
r	Okinawa New Energy Development Company, Inc.	464	588	+123	-44	-6	+38	-48	-11	+36	-27		-6		+21
	Okisetsubi Company, Ltd.	382	856	+473	-20	42	+63	-24	43	+68	-15		29		+44
	FRT, Inc.	805	975	+170	64	104	+39	64	105	+41	43		73		+29
	Progressive Energy Corporation.	1,858	2,251	+392	53	68	+14	57	67	+9	37		45		+7
	The Reliance Energy Okinawa, Inc.	1,502	1,791	+288	50	69	+18	32	51	+18	20		32		+11
Reconciliations	-22,286	-21,898	+387	-125	-54	+71	-346	-406	-59	-373		-408		-34
Consolidated	118,738	130,501	+11,763	-22,518	4,704	+27,223	-22,473	4,216	+26,690	-16,819*		3,238*		+20,057*
* Net income attributable to owners of parent.

7

The Okinawa Electric

Power Company, Inc.

Balance Sheet Comparison

(Unit: million yen)

FY2022	FY2023	Change	Major factors for change
Term end	2QTerm end

Assets	*1	480,546	496,423	+15,877
*2	441,260	454,824	+13,564
	Non-current	*1	402,215	404,290	+2,074	Capex +13,581 , Depreciation -10,547 ,
	assets	*2	381,594	381,892	+298	Loss on retirement of non-current assets -438
	Current assets	*1	78,331	92,133	+13,802
	*2	59,665	72,931	+13,266
Liabilities	*1	366,050	378,214	+12,164	Interest-bearing debt +17,699
	349,474	359,471	+9,997
		*2	Bonds payable +10,000
						Long-term loans payable -410
	Non-current	*1	296,337	304,167	+7,829	[ Borrowing +10,490 , Repayment -10,900]
	liabilities	*2	281,025	288,915	+7,890	CP +5,000
	Short-term loans payable +3,110
	Current liabilities	*1	69,713	74,047	+4,334
	*2	68,448	70,556	+2,107
Net assets	*1	114,495	118,208	+3,713	Net income*3 +3,238
*2	91,786	95,352	+3,566

Reference: Interest-bearing debt and Capital adequacy ratio

		FY2022	FY2023	Change
		Term end	2QTerm end
Interest-bearing debt (million yen)	*1	284,227	301,926	+17,699
*2	274,711	292,002	+17,290
Capital adequacy ratio (%)	*1	23.4 [ 26.6 ]	23.4 [ 26.4 ]	－[ -0.2 ]
[ After adjustments*4 ]	*2	20.8 [ 24.2 ]	21.0 [ 24.3 ]	+0.2[+0.1 ]

*1 Consolidated.

*2 Non-consolidated.

*3 Net income attributable to owners of parent.

*4 Calculated with 50% of the 30,000 million yen of issued hybrid corporate bonds as equity.

8

The Okinawa Electric

Power Company, Inc.

State of Capex, Cash Flow and Interest-bearing Debt

(Unit : million yen)

			Consolidated		Non-consolidated
		FY2022	FY2023	Change	FY2022	FY2023		Change
		2Q YTD	2Q YTD	2Q YTD	2Q YTD
		(Results)	(Results)		(Results)	(Results)
Capital expenditure	17,005	13,581	-3,424	11,132	11,087		-44
	Operating activities	-26,254	2,272	+28,527	-26,572	2,106		+28,678
C	Investing activities	-18,737	-16,037	+2,700	-18,261	-17,652		+609
F	(FCF)	(-44,992)	(-13,764)	(+31,227)	(-44,834)	(-15,546)		(+29,288)
	Financing activities	50,944	16,758	-34,185	49,171	16,420		-32,750
Interest-bearing debt	258,970	301,926	+42,955	249,004	292,002		+42,998
outstanding
【Operating activities】	+28,527 million yen
	Increase in income before income taxes.
【Investing activities】	+2,700 million yen

Decrease in Purchase of non-current assets.

Accordingly, free cash-flow is increase in 31,227 million yen.

9