The Kansai Electric Power Company (9503) Investor Day 2026 summary

Management and capital allocation

• FY2026–28 targets: ROIC ≥3.3% and ROE ≥8%; FY2025 ROIC was 5.5% and ROE 11.3%; targets exclude inflationary price increases.

• 2040 targets: ROIC 7% and ROE ≥12%; investments targeted to exceed WACC by 100–150 bps.

• Capital allocation weighs profitability, risk, duration and financing, prioritizing investments expected to exceed the cost of capital.

• FY2026–28 profit guidance follows the Q2 earnings report; Ohi Unit 3 and Mihama outages and Middle East uncertainty weigh on visibility.

Overseas energy strategy and portfolio

• FY2026–28 overseas growth investment: JPY 100bn; annual average profit target of JPY 20bn+ and ROIC of 4.5%+; 2040 target of JPY 40bn profit excluding asset-management effects and 6% ROIC.

• Portfolio spans 23 projects in 11 countries, with 10,000 MW gross and 2,500 MW net generation capacity, plus three T&D projects in three countries.

• Commitment basis at Mar. 31, 2026: Europe 56%, Asia 24% and North America 20%; 76% of earnings supported by long-term contracts, with a 70%–80% long-term-contract earnings strategy.

• Renewables exceed 50% of the portfolio; renewable energy, BESS and T&D are core areas, with selective gas-fired thermal investment.

• Asset rotation includes a partial ENW sale in FY2024, cutting ownership from 22.04% to 10.5% and generating JPY 25.3bn net profit; local partnerships include Iberdrola and Medco.

BESS business plan and market opportunity

• FY2026–28 BESS investment plan: ~JPY 20bn; ROIC target of ≥5% in FY2026–28 and ≥10% by FY2035.

• Development reached 455 MW across nine plants in eight locations as of Oct. 2026; target ~1,000 MW in the early 2030s and contracted operating capacity above 1.5 GW by 2030.

• Kinokawa, a 48 MW/113 MWh plant, began operations Dec. 1, 2024; Tanagawa is planned at 99 MW/396 MWh for Feb. 2028, with project IRR of ≥10% from related services.

• Kinokawa targets high-single-digit IRR; Tanagawa targets group IRR of ≥10%.

• Kan-denchi Fund No. 1 launched Mar. 31, 2026, with JPY 6.5bn fund size and 26-year duration; external financing supports capital efficiency and project development.