Chugoku Electric Power revises dividend policy, targets 2% DOE from 2026

Chugoku Electric Power has resolved to revise its shareholder return policy starting in fiscal year 2026 (ending March 2027), aligning it with the newly established "Chugoku Electric Power Group Management Vision 2040." This decision, made at a board meeting on September 30, 2025, aims to enhance financial predictability and consolidate the company’s financial strategy.

The revised policy introduces a DOE-based approach to dividend determination. Until the operational start of Unit 3 at the Shimane Nuclear Power Plant, the company will aim for a DOE of 2%, while also considering the overall recovery of its financial foundation. Following the commencement of Unit 3 operations, Chugoku Electric Power anticipates improved performance and stable free cash flow, leading to further enhancement of shareholder returns.

This strategic change replaces the previous dividend policy, which prioritized financial recovery and strengthening while targeting a dividend payout ratio of 12% linked to performance. The new approach is designed to provide stable returns to shareholders as the company implements its long-term vision.