Chugoku Electric Power revises dividend policy for shareholder returns

Chugoku Electric Power Co., Inc. announced a revised shareholder return policy, effective from fiscal year 2027, coinciding with the implementation of its "Chugoku Electric Power Group Corporate Vision 2040." The new policy will adopt a dividend on equity (DOE) concept, targeting a DOE of 2% until the commercial operation of Shimane Nuclear Power Station Unit 3, aiming for stable dividends during its financial rebuilding. Post-Shimane Unit 3 operation, shareholder returns will be further enhanced due to expected improved performance and stable positive free cash flow.

This revision supersedes the previous dividend policy, which prioritized financial base restoration with a 12% dividend ratio, slated for review upon achieving a 20% consolidated shareholders' equity ratio. The "Chugoku Electric Power Group Corporate Vision 2040," released concurrently, sets financial targets including a consolidated shareholders' equity ratio of 20% or more by fiscal year 2031, rising to 25-30% by fiscal year 2041.

The comprehensive vision addresses major shifts in the energy business, including decarbonization and electricity system reforms, and aims to maximize corporate value by improving economic and social value. Further details on the fiscal year 2027 dividend forecast will be provided with the earnings forecast for that period.