Tokyo Electric Power Company Holdings, Incorporated.

Decommissioning work may not proceed as planned due to technical uncertainties in fuel debris retrieval, troubles in contaminated water management, and insufficient social understanding of the ALPS treated water ocean discharge. Prolonged decommissioning could have a material impact on the Group's business performance, financial position, and business operations. As countermeasures, the Group periodically reviews the "Mid-to-Long-Term Decommissioning Action Plan" and is working to ensure transparency through on-site collaboration under a one-team structure and reviews by the IAEA.

Large-scale natural disasters, equipment accidents, terrorism, fuel procurement disruptions, infectious diseases, and other factors could cause prolonged and large-scale power outages, making it impossible to ensure a stable supply. This could impact business performance and financial position, in addition to potentially damaging social credibility. The Group is implementing measures such as strengthening power grid resilience, diversifying facilities, and reinforcing the LNG portfolio through JERA.

Changes in nuclear policy or safety regulations by the Nuclear Regulation Authority could affect the operation of the nuclear power generation business and the nuclear fuel cycle business. If Kashiwazaki-Kariwa Nuclear Power Station Unit 6 cannot operate stably, business performance and financial position could deteriorate due to increased thermal fuel costs, among other factors. Regarding the back-end business, revisions to institutional measures and increases in estimated future costs could also affect the financial position.

While the fuel cost adjustment system and market price adjustment system hedge earnings fluctuations to a certain extent, earnings could deteriorate if fuel prices or market prices fluctuate significantly due to timing lags or differences in the composition of sales and procurement. Of particular concern is the risk of surging fuel and electricity prices due to escalating tensions in the Middle East. The Group aims to minimize impact through hedging transactions using electricity derivatives, diversification of pricing plans, and cost reductions through expanding procurement sources.

Prices of LNG, crude oil, coal, and other fuels fluctuate depending on international fuel market conditions and foreign exchange rate trends, and worldwide fuel price surges, particularly in response to military tensions in the Middle East, could affect business performance and financial position. The Group addresses this through JERA's construction of a fuel portfolio leveraging one of the world's largest procurement scales, and fuel trading and futures hedging by JERA Global Markets.

The Group's interest-bearing debt balance reached ¥6,633.7 billion (equivalent to 43% of total assets) as of the end of March 2026, and rising interest rates directly impact business performance and financial position through increased interest payments. In addition, rising prices lead to increased costs for facility construction and renewal work, creating a risk of expanding financial burden as capital expenditures continue to exceed depreciation expenses. The Group addresses this through fundraising via fixed-rate corporate bonds and thorough investment screening and management rationalization.

If cyberattacks, operational errors, or violations of internal rules disrupt power supply or customer services, or if customer information or important business information is leaked, this could result in a loss of social trust and severe impact on business operations. The Group is working to strengthen cybersecurity through threat analysis, defensive measures, continuous monitoring, and response training, taking into account developments in the nuclear business and geopolitical changes.

Supply chain disruptions caused by large-scale disasters, escalating international tensions, and infectious diseases, along with rising prices, labor shortages in the construction industry, and bankruptcies or withdrawals of suppliers, could drive up procurement costs and impede planned procurement. In particular, delivery delays or manufacturing suspensions caused by geopolitical issues could disrupt the stable supply of electricity. The Group addresses this through diversification of suppliers, early ordering, thorough inventory management, and consideration of alternative products.

If management reforms—including reforms toward completing decommissioning, ensuring stable supply and business growth through GX/DX initiatives, financial improvement through management rationalization and asset sales, and the concretization of alliances—do not proceed as planned, this could affect business performance, financial position, and business operations. The Group aims to achieve its plans through the formulation of action plans, progress management via PDCA, and close cooperation with the Nuclear Damage Compensation and Decommissioning Facilitation Corporation.

The Nuclear Damage Compensation and Decommissioning Facilitation Corporation holds more than half of the total voting rights, and the exercise of voting rights at general shareholders' meetings, among other actions, could affect business operations. If the Corporation exercises its right to request conversion of Class B preferred shares into Class A preferred shares, or exercises its put option to acquire common shares as consideration, this could lead to further dilution of existing shares and a decline in the share price. The Group seeks to restore trust through maximum efforts to enhance corporate value and rationalize management.