Japanese Electric Power Industry and J-POWER

Electric Power Industry in Corporate Profile Directors and Corporate Auditors 31 Japan’s Electric Power Industry Structure (From April 1, 2005) Business Category Electric Utility (As of July 2007)

Date of Establishment September 16, 1952 Wholesale Power Other Special Electric President Executive Managing Senior Corporate Electric Power Companies PPS Self-Generators (Representative Director) Directors Auditors (Full-time) Companies Utilities Utilities Paid-in Capital ¥152,449,600,000 J-POWER Yoshihiko Nakagaki Yasuo Maeda Masayuki Hori Wholesale Suppliers Number of Shares Authorized 660,000,000 Kanji Shimada Akio Ushio Power Number of Shares Outstanding 166,569,600 Executive Vice Yoshihiko Sakanashi Generation Wholesale Power Exchange Number of Shareholders 36,106 Presidents Minoru Hino (Unregulated and Private) (Representative Director) Corporate Auditors Stock Exchange Listing Shinichiro Ota Yasuo Matsushita Executive Directors Independent Public Accountants Ernst & Young ShinNihon Kiyoshi Sawabe Integrated utilities Other PPS Mutsutake Otsuka Utilities Masaharu Fujitomi handle electricity Transfer Agent The Sumitomo Trust and Banking Masayoshi Kitamura Hideaki Miyahara generation, Toshifumi Watanabe transmission and Company, Limited Masashi Hatano distribution Tomoo Kosugi Neutral Koichi Tazawa Improve transparency Organization by cutting off Wheeling Services Japanese Electric Power Industry and J-POWER Network information and (Abolishment of transfer Network accounting practices service contracts) Headquarters Domestic Network Overseas Network 15-1, Ginza 6-chome, Chuo-ku, Tokyo 104-8165, Japan Hokkaido Regional Headquarter Washington Office (U.S.A.) Retail Tel: +81-3-3546-2211 Tohoku Office Beijing Office (China) URL: http://www.jpower.co.jp East Regional Headquarter Kuala Lumpur Office (Malaysia) Chubu Regional Headquarter Hanoi Office (Vietnam) Hokuriku Office Customers in the regulated market Customers in the liberalized market West Regional Headquarter Supply Contracts Electric rates are negotiated except Chugoku Office (standard and optional) under last-resort contracts Self- Customers within Shikoku Office Consumption Specific Areas Kyushu Office

Source: Federation of Electric Power Companies of Japan

Major Group Companies (As of June 30, 2007) Power Generating Facilities and Power Generated by Electric Power Utilities (As of March 31, 2007) Company name Location Website Main business Entities Wholesale Power Companies Publicly Held Power Producer Electric Power Special Electric Total of Electric Japan Atomic Companies and Supplier Operation of welfare facilities; facility maintenance; business process outsourc- Companies J-POWER Utilities Power Utilities http://www.jpbs.co.jp Source Power and Others (PPS) JP Business Service Corporation Koto-ku, Tokyo ing; development of computer software Hydro Construction, technical development, design, consulting, maintenance and research for hydroelectric power plants, substations and transmission lines; Power Generating Facilities (MW) 34,286 (75) 8,556 (19) — 2,842 (6) 1 (0) — 45,658 (100) http://www.jphytec.co.jp JPHYTECH Co., Ltd. Chiyoda-ku, Tokyo surveying and compensation of construction sites; civil engineering, construc- Power Generated (GWh) 65,967 (74) 12,212 (14) — 10,820 (12) 6 (0) — 89,005 (100) tion management and construction services Thermal Construction, technical development, design, consulting, maintenance and Power Generating Facilities (MW) 120,193 (86) 7,825 (6) — 10,177 (7) 268 (0) 938 (1) 139,401 (100) research for thermal and nuclear power plants; unloading and transporting of Jpec Co., Ltd. Chuo-ku, Tokyo http://www.jpec.co.jp coal to thermal power plants; sale of fly ash; shipping of coal for thermal power Power Generated (GWh) 467,982 (81) 51,231 (9) — 55,406 (10) 1,213 (0) 4,616 (1) 580,448 (100) plants; research, construction and maintenance for environmental engineering; Nuclear research and planning for environmental conservation

Power Generating Facilities (MW) 46,850 (95) — 2,617 (5) — — — 49,467 (100) KEC Corporation Bunkyo-ku, Tokyo http://www.kec.co.jp Construction and maintenance of electronic and communications facilities Power Generated (GWh) 287,122 (94) — 17,022 (6) — — — 304,144 (100) Design and construction management of electric power facilities; engineering http://www.kdc.co.jp Others KDC Engineering Co., Ltd. Nakano-ku, Tokyo and construction Power Generating Facilities (MW) 4 (100) — — — — — 4 (100) J-POWER RESOURCES Co., Ltd. Chuo-ku, Tokyo http://www.eoc.co.jp Research, exploration and development of, and investments in coal mines

Power Generated (GWh) 5 (100) — — — — 5 (100) Corporate Data J-POWER EnTech Co., Ltd. Minato-ku, Tokyo http://www.jpower.co.jp/entech Engineering of equipment for removal of atmospheric and water pollutants Total Power Generating Facilities (MW) 201,333 (86) 16,380 (7) 2,617 (1) 13,019 (6) 269 (0) 938 (0) 234,557 (100) Power Generated (GWh) 821,077 (84) 63,443 (7) 17,022 (2) 66,225 (7) 1,219 (0) 4,616 (0) 973,602 (100) For further information, please contact: Source: Japan Electric Association Electric Power Development Co., Ltd. Notes: Figures in parentheses indicate percentage share of total generation by source. IR Group Figures for thermal include geothermal. TEL:+81-3-3546-2211 FAX:+81-3-3546-9531 Others are the total of wind power and solar power. Excluding self-generation E-mail:[email protected] Contents 0 Japanese Electric Power Industry and J-POWER Electric Power Industry in Japan 02 J-POWER’s Power Generation (Consolidated) 04 Comparison of Electric Power Companies Industry and J-POWER Japanese Electric Power Power Generating Facilities Power Generated (As of March 31, 2007/MW) (As of March 31, 2007/GWh)

12 12 J-POWER Operational Data 11 13 13 10 11 1 10 06 Electric Power Business Facilities 9 1 8 9 8 08 Wholesale Electric Power Business 7 Total 7 Total 11 Other Electric Power Businesses 6 J-POWER 234,557 6 J-POWER 973,602 12 Overseas Power Generation Business 13 Other Major Diversified Businesses 5 2 5 2

4 4 3 3 J-POWER Operational Data

1 Tokyo Electric Power 1 Tokyo Electric Power 2 Kansai Electric Power 2 3 Chubu Electric Power 3 Kansai Electric Power Financial Condition 4 4 Kyushu Electric Power 14 Consolidated Financial Highlights 16 Consolidated Financial Statements 5 5 Tohoku Electric Power 20 Composition of Consolidated Revenues

6 J-POWER 16,380 6 J-POWER 63,433 and Expenses Consolidated 7 Chugoku Electric Power 7 Chugoku Electric Power 21 Non-Consolidated Financial Highlights Financial Condition 8 Hokuriku Electric Power 8 Hokuriku Electric Power 22 Non-Consolidated Financial Statements 9 9 Shikoku Electric Power 28 Structure of Non-Consolidated Revenues and Expenses of Electric Power Business 10 Hokkaido Electric Power 10 Hokkaido Electric Power 11 Japan Atomic Power 11 Japan Atomic Power

12 Okinawa Electric Power 12 Okinawa Electric Power Non-Consolidated

13 Publicly Held and Others/ 13 Publicly Held and Others/ Corporate Data Special Electric Utilities/ Special Electric Utilities/ Power Producer and Supplier Power Producer and Supplier 30 Corporate History 31 Corporate Profile Source: Japan Electric Association Note: Excluding self-generation Directors and Corporate Auditors Network Corporate Data Major Group Companies

Forward-Looking Statements Statements in this report, other than those of historical fact, are forward-looking statements about the future performance of J-POWER that are based on management’ s assumptions and beliefs in light of information currently available, and involve both known and unknown risks and uncertainties. Actual events and results may differ materi- ally from those anticipated in these statements. 0 Japanese Electric Power Industry and J-POWER J-POWER’s ElectricPowerRevenues(Consolidated) Note: J-POWER’s PowerSalesandFacilities(Consolidated) J-POWER’s PowerGeneration(Consolidated) Transmission Other electricpowerbusinesses Wholesale electricpowerbusiness Electric Power Revenues Other electricpowerbusinesses Wholesale electricpowerbusiness Hydroelectric: Other electricpowerbusinesses Wholesale electricpowerbusiness Capacity ofPower Generation Facilities Power Sales Thermal: Thermal Hydroelectric Total Thermal Hydroelectric Total Thermal Hydroelectric Other electricpowerbusinesses: Wholesale electricpowerbusiness: The J-POWERGroup’spowergenerationactivitiesareasfollows: ity forPPSs. electricity toEPCOs by IPPs andthe wholesale supply of electric Engaging inwindpowergeneration,thewholesalesupplyof our transmissionandsubstationfacilities. the EPCOs(excludingOkinawaElectricPowerCo.,Inc.)through hydroelectric powerplantsandprovidingtransmissionservicesto Supplying electricityto10EPCOsfromourthermaland

(GWh) (Millionsofyen)

Water supplyrate Load factor

(Millionsofyen) (%)

(%) (MW) (Billions ofyen) 100 200 300 400 500 600 - 0 15,00 30,00 45,00 60,00 75,00 (GWh ) 0 0 0 0 0 0 Right: Left: PowerSales 272,851 143,997 416,849 31,590 1998/3 57,292 41,709 10,120 41,709 13,915 13,915 5,655 8,261 103 — — — 70 Capacity ofPowerGenerationFacilities 246,830 145,643 392,474 1999/3 57,259 35,646 24,905 10,741 35,646 13,915 13,915 5,655 8,261 108 — — — 54 241,604 144,114 385,719 13,915 2000/3 62,287 39,827 30,041 39,827 13,915 9,786 5,655 8,261 100 64 — — — 281,084 144,100 425,184 2001/3 67,095 48,915 38,987 48,915 16,015 16,015 9,929 7,755 8,261 102 — — — 64 339,947 137,901 477,849 2002/3 67,183 50,403 41,529 50,403 16,085 16,085 8,873 8,261 7,825 — — — 66 92 335,371 138,195 473,567 2003/3 66,739 54,429 45,527 54,429 16,085 16,085 8,902 7,825 8,261 — — — 91 71 317,719 135,758 453,478 2004/3 63,398 59,305 47,937 10,850 58,787 16,509 16,375 8,551 4,472 7,825 517 109 134 75 339,228 137,106 476,335 2005/3 61,194 61,483 49,345 11,172 60,517 16,750 16,375 8,551 8,679 7,825 965 375 118 77 368,250 126,810 495,061 2006/3 58,255 16,495 64,328 54,044 62,627 16,870 16,375 1,701 8,583 7,825 8,551 495 84 90 326,543 123,490 450,034 2007/3 55,184 16,868 60,329 48,039 10,633 58,672 16,941 16,380 1,657 7,825 8,556 561 112 75 12,000 16,000 20,000 4,000 8,000 (MW) 0 0

(GWh) (MW) 75,000 20,000

60,000 16,000

45,000 12,000 Industry and J-POWER Japanese Electric Power

30,000 8,000

15,000 4,000

0 0

1998/3 1999/3 2000/3 2001/3 2002/3 2003/3 2004/3 2005/3 2006/3 2007/3 Capacity of Power Generation Facilities (MW) Wholesale electric power business 13,915 13,915 13,915 16,015 16,085 16,085 16,375 16,375 16,375 16,380 Hydroelectric 8,261 8,261 8,261 8,261 8,261 8,261 8,551 8,551 8,551 8,556 Thermal 5,655 5,655 5,655 7,755 7,825 7,825 7,825 7,825 7,825 7,825 Other electric power businesses — — — — — — 134 375 495 561 Total 13,915 13,915 13,915 16,015 16,085 16,085 16,509 16,750 16,870 16,941 Hydroelectric: Water supply rate (%) 103 108 100 102 92 91 109 118 90 112 Thermal: Load factor (%) 70 54 64 64 66 71 75 77 84 75 Power Sales (GWh) Wholesale electric power business 41,709 35,646 39,827 48,915 50,403 54,429 58,787 60,517 62,627 58,672 Hydroelectric 10,120 10,741 9,786 9,929 8,873 8,902 10,850 11,172 8,583 10,633 Thermal 31,590 24,905 30,041 38,987 41,529 45,527 47,937 49,345 54,044 48,039 Other electric power businesses — — — — — — 517 965 1,701 1,657 Total 41,709 35,646 39,827 48,915 50,403 54,429 59,305 61,483 64,328 60,329 Electric Power Revenues (Millions of yen) Wholesale electric power business 416,849 392,474 385,719 425,184 477,849 473,567 453,478 476,335 495,061 450,034 Hydroelectric 143,997 145,643 144,114 144,100 137,901 138,195 135,758 137,106 126,810 123,490 Thermal 272,851 246,830 241,604 281,084 339,947 335,371 317,719 339,228 368,250 326,543 Other electric power businesses — — — — — — 4,472 8,679 16,495 16,868 Transmission (Millions of yen) 57,292 57,259 62,287 67,095 67,183 66,739 63,398 61,194 58,255 55,184

(Billions of yen) 600

500

400

300

200

100

0 0 Japanese Electric Power Industry and J-POWER Overall ComparisonofMajorElectricPowerCompanies Comparison ofElectricPowerCompanies Source: Annualreports2006ofeachcompany andannualreport2007ofScottishSouthern Energyplc Notes: Operating RevenuesperEmployees Number ofEmployees(Consolidated) Net Income(Consolidated) Total OperatingRevenues(Consolidated) Shareholders’ Equity(Consolidated) Power Generated and Received Power Generating Facilities Area ofSupply (For theyearendedMarch 31,2007) Total Assets(Consolidated) Area ofSupply (Figures forScottishandSouthernEnergyplcaretheyearendedMar.31,2007) (Year endedDecember2006) Power Sales Source: Financialreportsofeachcompany Notes: Number ofCustomers Electric Power Revenues Operating RevenuesperEmployees Number ofEmployees (Consolidated) Market Capitalization Net Income(Consolidated) Operating Revenues(Consolidated) Net Assets (Consolidated) Total Assets (Consolidated)

Power toPump Water PowerStations PumpedStorage at Power Receivedand Transmissions fromOtherCompanies Generated Nuclear Thermal (includinggeothermalandinternalcombustion) Hydroelectric 2. FigureshavebeentranslatedintoJapanese yenatthefollowingrates:C$1.00=¥102.59; US$1.00=¥119.11;euro1.00¥156.50(Asof December31,2006) 2. Figuresforpowersalesandelectricrevenuesincludethosetolarge-loadcustomers. Thesefiguresdon’tincludethoseofpowerinterchangeandtoEPCOs. 1. Figuresareroundedoff. 1. Figuresarerounded,sothetotalsmaynotagreewithsumofeachcolumn. £1.00 =¥231.73(AsofMarch31,2007) customers. Figures fornumberofcustomersdonotincludelarge-loadandEPCOs. thenumberofcustomersKyushuandOkinawaElectricincludelarge-load (GWh) (Millionsofyen)(AsMarch30, 2007) (Thousands) (Millionsofyen) (Millionsofyen) (Millionsofyen) (Millionsofyen) (Millions ofyen) (MW) (Millions ofyen) (GWh) (Millionsofyen) (Millionsofyen) (Millions ofyen) (Millions ofyen) (Millions ofyen) Hydro-Quebec Whole ofJapan J-POWER 1,999,794 Canada 1,145,007 1,932,796 6,488,612 Quebec 569,812 987,758 573,277 462,654 383,789 65,111 65,154 16,380 60,329 35,167 (1,941) 19,116 1,984 7,825 8,556 6,494 — — 88 60 Duke Energy North Carolina Hokkaido 1,503,478 Hokkaido 1,808,566 3,109,009 8,182,857 526,719 673,864 559,580 467,890 221,902 30,108 35,234 31,512 34,462 25,600 5,193 1,158 3,950 1,231 6,339 3,899 7,973 (67) 70 71 Southern Company United States Tohoku area 1,306,824 4,069,331 1,503,619 1,728,296 1,032,681 1,709,943 1,354,400 5,104,816 Tohoku Atlanta 187,360 75,917 88,952 12,097 17,909 80,950 22,422 53,173 13,132 26,091 3,274 2,537 7,665 (97) 77 66 Con Edison 13,521,387 Kanto area 4,704,611 5,452,056 5,283,033 3,073,778 New York 1,445,638 3,180,118 Tokyo 271,775 312,721 287,622 298,154 953,356 45,342 35,533 61,835 17,308 52,584 28,089 (4,396) 14,795 87,784

8,993 100 98 United Kingdom(U.K.) Scottish andSouthern Chubu area 2,044,514 3,167,720 2,213,792 1,769,824 5,701,714 Energy plc 2,749,940 2,100,725 Chubu 127,399 144,061 132,687 192,452 601,548 U.K. 18,252 22,369 32,473 28,697 90,550 10,388 (1,590) 13,427 4,884 5,220 205 77 Hokuriku area 28,026,959 1,516,364 Hokuriku 9,222,858 3,881,044 France Europe 405,046 573,969 485,698 369,901 EDF 155,968 904,101 34,520 31,342 28,200 17,259 (3,161) 1,898 4,400 1,844 8,142 6,205 2,082 (18) 78 59 Kansai area 14,625,708 2,281,037 3,263,549 2,596,371 1,877,355 6,827,230 6,926,064 2,208,372 Kansai Europe 119,637 159,982 147,257 147,935 RWE 628,035 43,480 16,907 34,864 29,805 13,310 (3,134) 68,534 9,768 8,189 101 87 Germany Chugoku area 10,604,284 19,911,808 Chugoku 1,075,574 2,680,781 7,487,743 Europe 935,356 977,731 715,971 E.ON 791,421 18,928 48,895 67,112 12,201 61,259 14,506 37,093 80,612 1,280 8,016 2,905 5,206 (713) 132 74 1,435,821 Shikoku Shikoku 453,627 712,438 579,042 390,203 30,177 31,565 28,161 28,259 1,693 2,022 3,706 1,141 6,869 8,103 2,875 (305) 71 1,286,473 1,588,516 1,408,327 1,092,600 4,038,838 Kyushu Kyushu 15,733 76,761 92,244 11,775 19,414 84,399 18,167 65,967 5,258 2,381 8,423 (250) 78 Okinawa Okinawa 146,058 128,982 159,395 102,661 376,071 1,706 6,662 8,359 1,924 1,924 7,376 2,582 6,418 808 — — 62 (9) 0

(For the year ended March 31, 2007) J-POWER Hokkaido Tohoku Tokyo Chubu Hokuriku Kansai Chugoku Shikoku Kyushu Okinawa

Area of Supply Whole of Japan Hokkaido Tohoku area Kanto area Chubu area Hokuriku area Kansai area Chugoku area Shikoku Kyushu Okinawa Power Generating Facilities (MW) 16,380 6,339 17,909 61,835 32,473 8,142 34,864 12,201 6,869 19,414 1,924 Hydroelectric 8,556 1,231 2,537 8,993 5,220 1,844 8,189 2,905 1,141 2,381 — Thermal (including geothermal and internal combustion) 7,825 3,950 12,097 35,533 22,369 4,400 16,907 8,016 3,706 11,775 1,924 Nuclear — 1,158 3,274 17,308 4,884 1,898 9,768 1,280 2,022 5,258 — Industry and J-POWER

Power Generated and Received (GWh) 65,154 35,234 88,952 312,721 144,061 31,342 159,982 67,112 31,565 92,244 8,359 Japanese Electric Power Generated 65,111 30,108 75,917 271,775 127,399 34,520 119,637 48,895 30,177 76,761 6,662 Power Received and Transmissions from Other Companies 1,984 5,193 13,132 45,342 18,252 (3,161) 43,480 18,928 1,693 15,733 1,706 Power to Pump Water at Pumped Storage Power Stations (1,941) (67) (97) (4,396) (1,590) (18) (3,134) (713) (305) (250) (9)

Power Sales (GWh) 60,329 31,512 80,950 287,622 132,687 28,200 147,257 61,259 28,161 84,399 7,376

Electric Power Revenues (Millions of yen) 569,812 526,719 1,306,824 4,704,611 2,044,514 405,046 2,281,037 935,356 453,627 1,286,473 146,058

Number of Customers (Thousands) — 3,899 7,665 28,089 10,388 2,082 13,310 5,206 2,875 8,423 808

Total Assets (Consolidated) (Millions of yen) 1,999,794 1,503,478 4,069,331 13,521,387 5,701,714 1,516,364 6,827,230 2,680,781 1,435,821 4,038,838 376,071

Net Assets (Consolidated) (Millions of yen) 462,654 467,890 1,032,681 3,073,778 1,769,824 369,901 1,877,355 715,971 390,203 1,092,600 102,661

Operating Revenues (Consolidated) (Millions of yen) 573,277 559,580 1,728,296 5,283,033 2,213,792 485,698 2,596,371 1,075,574 579,042 1,408,327 159,395

Net Income (Consolidated) (Millions of yen) 35,167 34,462 53,173 298,154 90,550 17,259 147,935 37,093 28,259 65,967 6,418

Market Capitalization (Millions of yen) (As of March 30, 2007) 987,758 673,864 1,503,619 5,452,056 3,167,720 573,969 3,263,549 977,731 712,438 1,588,516 128,982

Number of Employees (Consolidated) 6,494 7,973 22,422 52,584 28,697 6,205 29,805 14,506 8,103 18,167 2,582

Operating Revenues per Employees (Millions of yen) 88 70 77 100 77 78 87 74 71 78 62 Notes: 1. Figures are rounded, so the totals may not agree with the sum of each column. 2. Figures for power sales and electric power revenues include those to large-load customers. These figures don’t include those of power interchange and those to EPCOs. Figures for number of customers do not include large-load customers and EPCOs. Figures for the number of customers of Kyushu and Okinawa Electric include large-load customers. Source: Financial reports of each company

(Year ended December 2006) Canada United States United Kingdom (U.K.) France Germany Scottish and Southern (Figures for Scottish and Southern Energy plc are for the year ended Mar. 31, 2007) Hydro-Quebec Duke Energy Southern Company Con Edison EDF RWE E.ON Energy plc Area of Supply Quebec North Carolina Atlanta New York U.K. Europe Europe Europe

Total Assets (Consolidated) (Millions of yen) 6,488,612 8,182,857 5,104,816 3,180,118 2,100,725 28,026,959 14,625,708 19,911,808

Shareholders’ Equity (Consolidated) (Millions of yen) 1,932,796 3,109,009 1,354,400 953,356 601,548 3,881,044 2,208,372 7,487,743

Total Operating Revenues (Consolidated) (Millions of yen) 1,145,007 1,808,566 1,709,943 1,445,638 2,749,940 9,222,858 6,926,064 10,604,284

Net Income (Consolidated) (Millions of yen) 383,789 221,902 187,360 87,784 192,452 904,101 628,035 791,421

Number of Employees (Consolidated) 19,116 25,600 26,091 14,795 13,427 155,968 68,534 80,612

Operating Revenues per Employees (Millions of yen) 60 71 66 98 205 59 101 132 Notes: 1. Figures are rounded off. 2. Figures have been translated into Japanese yen at the following rates: C$1.00 = ¥102.59; US$1.00 = ¥119.11; euro1.00 = ¥156.50 (As of December 31, 2006) £1.00 = ¥231.73 (As of March 31, 2007) Source: Annual reports 2006 of each company and annual report 2007 of Scottish and Southern Energy plc 0 J-POWER Operational Data Electric PowerBusinessFacilities J-POWER OperationalData F Note: Includingfacilitiesofsubsidiariesandaf Other ElectricP T and Planning Under Construction, T F Wholesale ElectricP acilities acilities Thermal powerplant Wind powerfarm/plant Nuc Thermal powerplant Hydroelectric powerplant Substation ofEPCOs AC/DC converterstation Substation, Thermal powerplant Hydroelectric powerplant ransmission line ransmission line lear powerplant ower Businesses frequenc PreparingforConstruction ower Business y converterstation, Ishikawa Coal filiates Nagasaki-Shikamachi Setana Seaside Wind F Wind F (AC/DC ConverterStation) Hakodate arm arm Matsushima Matsuura T omamae Interconnecting Line Kanmon To kachi Winvilla T InterconnectingLine We runk Line Sendaigawa No.1 st Wind F Area Wind F Aso Nishihara arm Nukabira arm T Anan (AC/DCConverterStation) akehara T osa (IPP) Interconnecting Line Honshi Nahari T achibanawan T runk Line and Planning Under Construction, T F Wholesale ElectricP F Note: Includingfacilitiesofsubsidiariesandaf Other ElectricP T acilities acilities Thermal powerplant Wind powerfarm/plant Nuc Thermal powerplant Hydroelectric powerplant Substation ofEPCOs AC/DC converterstation Substation, Thermal powerplant Hydroelectric powerplant ransmission line ransmission line lear powerplant ower Businesses frequenc PreparingforConstruction ower Business y converterstation, Ishikawa Coal filiates Nagasaki-Shikamachi Setana Seaside Wind F Wind F (AC/DC ConverterStation) Hakodate arm arm Matsushima Matsuura T omamae Interconnecting Line Kanmon To kachi Winvilla T InterconnectingLine We runk Line Sendaigawa No.1 st Wind F Area Wind F Aso Nishihara arm Nukabira arm T Anan (AC/DCConverterStation) akehara T osa (IPP) Interconnecting Line Honshi Nahari T achibanawan T runk Line 0 J-POWER Operational Data 0 J-POWER Operational Data Geothermal PowerPlant Coal-Fired PowerPlants 0 1 2 3 4 5 6 7 (1) ThermalPowerGeneration 1. WholesaleElectricPowerBusiness (Y Note: Excludingself-generators Hokuriku ElectricPower Chugoku ElectricPower Kyushu ElectricPower Hokkaido ElectricPower T Shikoku ElectricPower Kansai ElectricPower Okinawa ElectricPower Capacity ofCoal-Fir Calorific UnitPricebyFossilFuel(Imports) (As ofMar *Converted fromheavyoil-fueledboilerto coal-fueled fluidizedboiler Ishikawa Coal Matsuura Matsushima Tachibanawan Takehara Takasago Isogo Onikobe 90/ okyo ElectricPower en/1,000K cal) Sour Chart datauptoMar 1 91/ Crude oil ce: TheEnergyDataandModellingCenter 1 92/ ch 31,2007) 1 Power Station 93/ Power Plants 1 LNG 94/ 1 ch 31,2007 95/ 1 Coal ed PowerGenerationinJapan 96/ 1 No. 2 No. 1 No. 2 No. 1 No. 2 No. 1 No. 2 No. 1 No. 3 No. 2 No. 1 No. 2 No. 1 New No.1 97/

(As ofMarch31,2007) (As ofMarch31,2007) 1 98/ 1 99/ 1 00/ Others 1 01/ 37,364 Beginning ofOperation Beginning ofOperation 1 02/ T 1 otal June 1995* Mar. 1975 June 1990 June 1981 03/ Mar. 1987 Mar. 1983 Mar. 2002 Dec. 2000 Nov. 1986 Jan. 1981 Jan. 1969 July 1997 July 2000 July 1967 July 1968 1 MW J-POWER 7,812 04/1 T Electric Power 05/ ohoku MW 1 Electric Chubu Power 06/ 1 07/1 Okinawa Prefecture Nagasaki Prefecture Nagasaki Prefecture Tokushima Prefecture Hiroshima Prefecture Hyogo Prefecture Kanagawa Prefecture (As ofMar Pr Capacity ofThermalPowerGenerationinJapan (As ofMar Sour Note: Excludingself-generator Kyushu ElectricPower T Chugoku ElectricPower J-POWER 7,825 Hokuriku ElectricPower Hokkaido ElectricPower Shikoku ElectricPower Okinawa ElectricPower ohoku ElectricPower oportion ofJ-POWER’ ce: JapanElectricAssociation ch 31,2007) ch 31,2007) Location Location MW Geothermal s s ThermalPowerGenerationbySour 7,824.5 7,812 Coal fired T otal 12.5 MW MW MW Maximum Capacity(kW) Maximum Capacity 139,400 Others 1,000,000 1,000,000 1,050,000 1,050,000 12,500kW 156,000 156,000 500,000 500,000 700,000 350,000 250,000 250,000 250,000 600,000 T Electri otal Kansai Power MW c Electric Power T okyo Electric Chubu Power ce Major HydroelectricPowerPlants (2) HydroelectricPowerGeneration 120 150 Av Sour (As ofMar (MW) Note: Includespowerplantswithmaximum outputof50,000kWormore Sendaigawa No.1 Futamata Nanairo Ikehara Totsugawa No.2 Totsugawa No.1 Tedorigawa No.1 Yugami Nagano Miboro No.2 Miboro Sakuma Shintoyone Misakubo Numappara Okukiyotsu No.2 Okukiyotsu Kuromatagawa No.1 Taki Tadami Tagokura Otori Okutadami Shimogo 30 60 90 0 erage GenerationCapacityperHydr ce: JapanElectricAssociation

Power Plants J-POWER ch 31,2007)

Tokyo

Kansai Feb. 1965 Jan. 1963 July 1965 Sept. 1964 Jan. 1962 Oct. 1960 Aug. 1979 May 1968 May 1968 Dec. 1963 Jan. 1961 Apr. 1956 Nov. 1972 May 1969 June 1973 June 1996 July 1978 Feb. 1958 Dec. 1961 July 1989 May 1959 Nov. 1963 Dec. 1960 Apr. 1988 Beginning ofOperation Chugoku

Chubu

Hokkaido

(As ofMarch31,2007)

Shikoku oelectric PowerPlant Kagoshima Prefecture Kochi Prefecture Wakayama Prefecture Nara Prefecture Wakayama Prefecture Nara Prefecture Ishikawa Prefecture Fukui Prefecture Fukui Prefecture Gifu Prefecture Gifu Prefecture Shizuoka Prefecture Aichi Prefecture Shizuoka Prefecture Tochigi Prefecture Niigata Prefecture Niigata Prefecture Niigata Prefecture Fukushima Prefecture Fukushima Prefecture Fukushima Prefecture Fukushima Prefecture Fukushima Prefecture Fukushima Prefecture

Kyushu

Hokuriku Location

To hoku Note:Excluding self-generators Kansai ElectricPower Chubu ElectricPower Chugoku ElectricPower To Kyushu ElectricPower Hokuriku ElectricPower Hokkaido ElectricPower Shikoku ElectricPower Other Capacity ofHydr (As ofMar hoku ElectricPower Maximum Capacity(kW) 1,125,000 1,000,000 1,000,000 ch 31,2007) 120,000 350,000 250,000 220,000 215,000 350,000 675,000 600,000 385,000 182,000 560,000 72,100 82,000 58,000 75,000 54,000 59,200 50,000 61,500 92,000 65,000 oelectric PowerGenerationinJapan dam type dam conduittype dam conduittype dam type,mixedpumpedstorage dam conduittype dam conduittype dam conduittype dam conduittype dam type,mixedpumpedstorage dam conduittype dam conduittype dam conduittype dam conduittype,genuinepumpedstorage dam conduittype dam conduittype,genuinepumpedstorage dam conduittype,genuinepumpedstorage dam conduittype,genuinepumpedstorage dam conduittype dam type dam type dam type dam type dam conduittype dam conduittype,genuinepumpedstorage 45,685 Type T otal Electric Power MW T okyo J-POWER 8,556 MW 0 J-POWER Operational Data 10 J-POWER Operational Data Dam(scheduledinfiscal 2007),therequiredprocedureswillbe takenandtheoperatingbody ofthepowerplantshallbe transferredfromJ-POWERtoChubuElectric Power. *Regarding theconstruction planoftheTokuyamaPowerPlant, J-POWERhasreachedanagreement withChubuElectric PowerCo.,Inc.thatfollowingcompletion oftheTokuyama List ofPowerDevelopmentPlans to add2,156MWofcapacityourexisting16,380MW.Thesegains ending March2008through2017.Duringthisperiod,weintend after talkswithEPCOs.Theplancoverstheperiodfromfiscalyear We formulatedandsubmittedourplanforthenext10yearswithMETI (4) PowerDevelopmentPlans AC/DC ConverterStations Frequency ConverterStation Substations Major TransmissionLines (3) TransmissionLinesandSubstations From 2018/3 Capacity asof2017/3 2017/3 2016/3 2015/3 2014/3 2013/3 2012/3 2011/3 2010/3 2009/3 2008/3 Capacity asof2007/3 Anan Kihoku Kamikita Hakodate Sakuma Nagoya Nishi-Tokyo Minami-kawagoe Tokachi TrunkLine Note: Includestransmissionlinesextendingover100kmormore Kitahon HVDCLink Honshi InterconnectingLine Nahari TrunkLine Miboro TrunkLine Sakuma WestTrunkLine Sakuma EastTrunkLine Tadami TrunkLine Frequency ConverterStation AC/DC ConverterStations Transmission Lines Power source Substations

(As ofMarch31,2007) Sagara 16.5 Shinkatsurazawa (March)16.8 Tokuyama* 153 Isawa No.117.7 Abolition ofKatsurazawa(April)(15) Abolition ofIsawaNo.1(April)(14.6) Beginning ofOperation Beginning ofOperation Beginning ofOperation Beginning ofOperation

(As ofMarch31,2007)

(As ofMarch31,2007)

(As ofMarch31,2007) Dec. 1979 Dec. 1979 Dec. 1979 Nov. 1960 Jun. 2000 Jun. 1994 Jun. 1960 Jan. 1956 Jun. 2000 May 1959 May 1959 Apr. 1956 Apr. 1956 Apr. 1956 Apr. 1956 Oct. 1965

Hydroelectric (Years endingMarch31) Tokushima Prefecture Wakayama Prefecture Aomori Prefecture Hokkaido Prefecture Shizuoka Prefecture Aichi Prefecture Tokyo Prefecture Saitama Prefecture Hokkaido Prefecture Hokkaido Prefecture−Aomori Kagawa Prefecture−Okayama Kochi Prefecture−Ehime Gifu Prefecture−Aichi Shizuoka Prefecture−Aichi Shizuoka Prefecture−Tokyo Fukushima Prefecture−Tokyo 8,728.4 8,555.5 Isogo NewNo.2(July)600 1,383MW unitattheOhmaNuclearPowerPlant. Isogo NewNo.2ThermalPowerPlantandtheMarch2012startupofa should stemmainlyfromtheJuly2009startupof600MWunitat Thermal Location Location Location Location 8,424.5 7,824.5 Ohma (March)1,383 Nuclear — Total Lines 167.4km 127.0km 119.9km 108.6km 107.7km 197.2km 215.9km 214.3km 1,400,000kVA 1,350,000kVA 1,542,000kVA 1,400,000kW 1,400,000kW 600,000kW 600,000kW 300,000kW 1,383 Output Output Output 275kV –500kV DC, ±250kV Total capacity Voltage 500kV 187kV 275kV 275kV 275kV 187kV 18,535.9 18,535.9 18,535.9 18,519.1 18,348.4 18,363.4 18,358.4 16,990.0 16,985.0 16,385.0 16,380.0 16,380.0 (MW) 10 Wind PowerGeneration Other ElectricPowerBusinessProjects 2. OtherElectricPowerBusinesses (%) Pr Farm Tomamae WinvillaWind (Fukushima Prefecture) Wind Farm Koriyama-Nunobiki Kogen (Aichi Prefecture) Tahara BaysideWindFarm (Hokkaido Prefecture) Setana SeasideWindFarm (Kumamoto Prefecture) Aso-Nishihara WindFarm (Nagasaki Prefecture) Farm Nagasaki-Shikamachi Wind (Iwate Prefecture) Wind Farm Green PowerKuzumaki (Tokyo Prefecture) Plant Tokyo BaysideWindPower (Akita Prefecture) Nikaho-Kogen WindFarm (Hokkaido Prefecture) 20 40 60 80 0 0 oportion ofCapacitybySour Conventional hydro Projects 07/3 48% 30% 22% 0% Facilities: Capacity: Facilities: Capacity: Facilities: Capacity: Facilities: Capacity: Facilities: Capacity: Facilities: Capacity: Facilities: Capacity: Facilities: Capacity: Facilities: Capacity: Pumped storage 08/3 (E) 48 30 22 Facilities 0% 1.98MW x1 2MW x32 65.98MW 2MW x11 22MW 2MW x6 12MW 1.75MW x10 17.5MW 1MW x15 15MW 1.75MW x12 21MW 0.85MW x2 1.7MW 1.65MW x15 24.75MW 1.5MW x5 1.65MW x14 30.6MW % % % ce Coal 12/3 (E) (AsofMarch31,2007) 46% 27% 19% 8% 0% Nagasaki-Shikamachi WindPowerCo.,Ltd. Equity stake: Green PowerKuzumakiCo.,Ltd. Equity stake: J-Wind TOKIOCo.,Ltd. Equity stake: Nikaho-Kogen WindPowerCo.,Ltd. Equity stake: Dream-Up TomamaeCo.,Ltd. Equity stake: Green PowerKoriyamaNunobikiCo.,Ltd. Equity stake: J-Wind TAHARACo.,Ltd. Equity stake: Green PowerSetanaCo.,Ltd. Equity stake: Green PowerAsoCo.,Ltd. Equity stake: Geothermal 17/3 (E) J-POWER 100% TsushoCorporation50% J-POWER 50%; Kyowa OilCo.,Ltd.3% Eco-Material Co.,Ltd.10%; Corporation20%; J-POWER 67%; J-POWER 100% J-POWER 100% Toyota TsushoCorporation34% J-POWER 66%; J-POWER 100% ,Ltd.19% J-POWER 81%; New EnergyPlanningCo.,Ltd.30% J-POWER 70%; Operating companies Nuclear 46 27 20 7% 0% % % % 10 (%) Pr 20 40 60 80 0 0 oportion ofPowerGenerationbySour Conventional hydro 07/3 80% 17% June 2003 Established Nagasaki-Shikamachi Wind Power Co., Ltd. Feb. 2007BeganOperation May 2005Startedconstruction Feb. 2004EstablishedGreenPowerKoriyama NunobikiCo.,Ltd. Mar. 2005Beganoperation Oct. 2003EstablishedJ-WindTAHARACo., Ltd. Dec. 2005Beganoperation Feb. 2004EstablishedGreenPowerSetanaCo.,Ltd. Feb. 2005Beganoperation June 2003EstablishedGreenPowerAsoCo.,Ltd. Feb. 2005Beganoperation Dec. 2003Beganoperation Sept. 2001EstablishedGreenPowerKuzumakiCo.,Ltd. Mar. 2003Beganoperation June 2002EstablishedJ-WindTOKIOCo.,Ltd. Dec. 2001Beganoperation Apr. 2000EstablishedNikaho-KogenWindPowerCo.,Ltd. Dec. 2000Beganoperation Apr. 1999EstablishedDream-UpTomamaeCo.,Ltd. 0% 3% Pumped storage 08/3 (E) 81% 15% 0% 4% Status Coal 12/3 (E) 77 15 1% 0% ce 6% Geothermal % % 17/3 (E) Nuclear 15% 65% 15% 6% 0% 11 J-POWER Operational Data 12 J-POWER Operational Data Overseas PowerGenerationProjects 3. OverseasPowerGenerationBusiness Electricity SupplyBusiness (Kochi Prefecture) Tosa (Niigata Prefecture) Itoigawa (Kanagawa Prefecture) Genex Mizue [IPP] (Chiba Prefecture) Mihama SeasidePower (Chiba Prefecture) Ichihara Power (Chiba Prefecture) Bay SideEnergy [Wholesale PowerforPPS] Philippines Country/ Region Thailand Taiwan China Projects USA Independent Power Nong Khae Rayong Roi-Et Layte Elwood Energy Kaeng Khoi #2 (Unit No. 1) Gulf Cogeneration (Kaeng Khoi) Samutprakarn Zajaczkowo Tenaska Frontier Thaioil Power Chiahui Tianshi CBK Yala Type: Coal-firedpower Capacity: 150MW Type: Coal-firedpower Capacity: 134MW Type: Gascombinedcyclepower Capacity: 238MW Type: Gascombinedcyclepower Capacity: 104.77MW Type: Gascombinedcyclepower Capacity: 110MW Type: Gascombinedcyclepower Capacity: 107.65MW Project Name (Unit No. 2) Facilities

(As ofJune30,2007) Equity stake: TOSA POWERInc. Equity stake: ITOIGAWA POWERInc. Equity stake: J-POWER GENEXCAPITALCo.,Ltd. Equity stake: GENEX Co.,Ltd. Equity stake: Mihama SeasidePowerCo.,Ltd. Equity stake: Ichihara PowerCo.,Ltd. Equity stake: Bay SideEnergyCo.,Ltd. Rubber Wood Waste Chaff Gas simple cycle Gas CCGT Gas CCGT Gas CCGT Gas CCGT Gas CCGT Gas CCGT Gas CCGT Gas CCGT Gas CCGT Gas CCGT Wind power Coal waste Hydroelectric Geothermal Heat Generating Source Taiheiyo CementCorporation20% Shikoku ElectricPowerCompany35%; J-POWER 45%; Taiheiyo CementCorporation20% J-POWER 80%; J-POWER 100% Toa OilCo.,Ltd.60% J-POWER GENEX CAPITAL Co., Ltd. 40%; Diamond PowerCorporation50% J-POWER 50%; Co., Ltd.40% Engineering&Shipbuilding J-POWER 60%; J-POWER 100% Operating companies Capacity (MW) 120.4 117.4 110.4 112.5 1,350 20.2 670 734 734 700 113 728 830 48 10 50 49 Under construction Under construction July 2001Beganoperation June 2003Beganoperation Mar. 2003EstablishedJPOWERGENEXCAPITALCo.,Ltd. Sept. 2001EstablishedGENEXCo.,Ltd. Oct. 2005Beganoperation Nov. 2003EstablishedMihamaSeasidePowerCo.,Ltd. Oct. 2004Beganoperation Dec. 2002EstablishedIchiharaPowerCo.,Ltd. Apr. 2005Beganoperation Mar. 2002EstablishedBaySideEnergyCo.,Ltd. Apr. 2005Beganoperation Mar. 2005InvestedinTOSAPOWERInc. June 2003EstablishedTOSAPOWERInc. July 2003EstablishedITOIGAWAPOWERInc. Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Status Ownership Status 48.0 10.6 24.7 25.0 (%) 45 40 49 49 49 49 49 19 20 24 50 10 31 Participation Mar. 2001 Dec. 2000 Nov. 2002 Nov. 2002 Nov. 2001 Jan. 2007 Jan. 2003 Jan. 2005 Jan. 2007 May 2003 May 1997 May 2006 Apr. 2001 Apr. 2001 Apr. 2000 Oct. 2004 Oct. 2004 Date （M inasofJune30,2007. Note: T ■ ■ (As ofJune30,2007) 1,000 2,000 3,000 4,000 5,000 6,000 7,000 (As ofJune30,2007) Capacity Inter (including thoseunderconstruction) Pr (As ofJune30,2007) *PFI: PrivateFinance Initiative 4. OtherMajorDiversifiedBusinesses (Tokyo Prefecture) PFI Business Kanamachi FiltrationPlant (Aichi Prefecture) Narumi PlantPFIBusiness (Fukuoka Prefecture) Omuta Waste-fueledPowerPlant Middle otal: 61countries/r

W Number ofcompletedpr Number ofongoingpr Eu 0 oportion ofJ-POWER’ ） ro Project name(Location) The amountin2008/3isestimatedbasedonpr East U.S.A. Philippines Ta Others national ConsultingServices pe 38 iwan 14countries /A 17 03/ 2 fr ic 3 Tr a 14 countries ends atOperationalOverseasGeneratingFacilities thermal power egion 279pr Chiahui ga 04/ ojects-39 3 s ojects-240 CBK hydroelectricpower 12% 144 33 ojects Participation in As s OverseasGenerationCapacity ia 05/ 10% 19countries/region 33% (Gas turbines, Output: 12.28MW) Cogeneration at Kanamachi Filtration Plant of Tokyo Metropolitan Waterworks Bureau (General waste,Wasteprocessingcapacity: 530t/day) Repair andmaintenanceworkatNarumi PlantinNagoya (Output: 20.6MW,RDFprocessingcapacity:315t/day) Fuel) madebycompressingandforminggeneralwaste Recycling powergenerationusingsolidfuel(RDF:RefuseDerived 3 3% 06/ Thailan ojects participated 42% 3 Lati d Participation in Frontier andElwoo No n Energy power rt Am h 1 07/3 Am eric eric Te Business a 13countries nask gas thermalpowerUnit2(E a 1 countr d gas thermalpowerUnit1, a Kaeng Khoi

40 (As ofMarch31,2007) 4 08/ (E ) y 3 2 ) Overseas PowerGenerationPr (As ofJune30,2007) (Gas cogeneration) Gulf Cogeneration(KaengKhoi) (Gas cogeneration) Nong Khae (Gas cogeneration) Samutprakarn (Gas combined Independent Te (Gas combined naska (Gas simple Energy Elwood Ownership (%) Po cy Fr c wer (Rubber woodwaste) Y le) ontier ala 45.2 20 11 cy cy cl cl e) e) (Gas combined Kaeng Khoi#2 (Chaff) Roi-E (Coal waste) Ti anshi Oct.2000 Jul.2009 Aug.2006 Dec.2002 t ojects cy cl e) Began operation Scheduled tobeginoperation Began construction Began operation (Gas cogeneration) Rayong (Gas cogeneration) Thaioil (Gas combined Chiahu (Hydroelectric) CBK (Wind power Zajaczkowo Status (Geothermal) Leyte Po wer i , Under construction) cy cl e) 13 J-POWER Operational Data Financial Condition

14 Consolidated Financial Highlights (Millions of yen) 2003/3 2004/3 2005/3 2006/3 2007/3 Operating Revenues 584,122 569,854 594,375 621,933 573,277 Operating Income 134,201 132,138 111,885 101,469 77,141 Ordinary Income 35,522 44,446 57,093 67,906 55,513

Financial Condition Net Income 20,725 27,623 35,559 43,577 35,167 Net Assets 168,301 359,645 391,327 433,028 462,654 Total Assets 2,195,897 2,076,107 2,021,655 1,964,667 1,999,794 Interest-Bearing Debt 1,893,902 1,592,908 1,498,010 1,408,232 1,421,542 Shareholders’ Equity Ratio (%) 7.7 17.3 19.4 22.0 23.1 Cash Flows from Operating Activities 167,368 179,948 172,637 173,954 157,241 Cash Flows from Investing Activities (11,030) (64,507) (60,586) (72,326) (155,407) Free Cash Flow 156,338 115,441 112,051 101,628 1,834 Cash Flows from Financing Activities (117,709) (147,516) (111,798) (103,613) (2,168) Cash and Cash Equivalents at the End of the Period 59,787 27,673 30,221 28,874 34,575 Number of Employees 6,543 5,871 5,925 5,868 6,494

Operating Revenues/Operating Income/Ordinary Income Net Assets (left)/Shareholders’ Equity Ratio (right)

(Billions of yen) (Billions of yen) (%) 600 500 25

500 400 20

400 300 15 300 200 10 200

100 5 100

0 0 0 03/3 04/3 05/3 06/3 07/3 03/3 04/3 05/3 06/3 07/3 Operating revenues Operating income Ordinary income Net assets Shareholders’ equity ratio

Cash Flows Composition of Interest-Bearing Debt

(Billions of yen) (Billions of yen) 200 2,000

150 1,500 100

50 1,000 0

-50 500 -100

-150 0 03/3 04/3 05/3 06/3 07/3 03/3 04/3 05/3 06/3 07/3

Cash flows from operating activities Cash flows from investing activities Government-guaranteed bonds, Government-funded bonds Free cash flow Government borrowings Corporate bonds Commercial borrowings (incl. CP) 10 20 30 40 50 Net Income(left)/Retur (Billions ofyen) 100 150 200 250 300 350 (Y Net IncomeperShar Notes: Interest CoverageRatio(Times) Price Book-ValueRatio(PBR)(Times)(Note4) Price EarningsRatio(PER)(Times)(Notes3and4) Net AssetsperShare(BPS)(Yen) Net IncomeperShare(EPS)(Yen)(Note3) Return onAssets(ROA)(%)(Note2) Return onEquity(ROE)(%)(Note1) Depreciation Capital Expenditure 0 50 en) 0 Net income closingpriceoftheCompany’ssharesatendfiscalyear. 4. J-POWERshareslistedontheFirstSectionofTokyoStockExchangeinfiscal year ended March31,2005.Thesharepriceusedforcomputationpurposesisthe 3. J-POWERcarriedouta1.2-for-1stocksplitonMarch1,2006.Calculationsassumethatthiswasatthebeginningofthefiscalyear. 2. ROA:Netincome/Averagetotalassets 1. ROE:Netincome/Averagetotalshareholders’equity.Shareholders’equity=assets -minority interests-sharesubscriptionrights. Net incomepershare(EPS) 03/3 03/3 04/3 e (EPS)(left)/NetAssetsperShar 04/3 Return onequity(ROE) n onEquity(ROE)(right) 05/3 Net assetspershare(BPS) 05/3 06/3 06/3 e (BPS)(right) 07/3 07/3 1,000 1,500 2,000 2,500 3,000 3,500 (Y 500 (%) en) 10 15 20 25 0 0 5 2003/3 2,381.71 2003/3 137,148 291.40 53,443 12.9 0.9 1.6 — — 120 150 1,000 1,500 2,000 (Billions ofyen) To (Billions ofyen) Capital Expenditur 30 60 90 500 0 tal Assets(left)/Retur 0 Net Capital expenditure Assets Construction inprogress 2004/3 2,590.00 2004/3 131,380 03/3 03/3 Return onassets(ROA) 304.88 46,202 10.5 ( 1.6 1.3 — — Power pants 04/3 e/Depr 04/3 2005/3 2,818.04 2005/3 125,339 Depreciation 255.01 50,925 n onAssets(ROA)(right) 12.9 Other property Investment andotherassets eciation 2.2 1.2 1.7 9.5 05/3 05/3 , plant andequipment 2006/3 2,598.90 2006/3 135,019 260.76 60,861 06/3 14.3 10.6 06/3 2.2 2.9 1.4 Current assets) 07/3 2007/3 2,768.95 2007/3 (Millions ofyen) 123,083 07/3 211.14 90,704 28.1 1.8 7.9 3.5 2.1 0.0 0.5 1.0 1.5 2.0 2.5 (%) 15 Financial Condition Consolidated 16 Financial Condition Consolidated BalanceSheets Consolidated FinancialStatements Property, PlantandEquipment Assets Current Assets Note: Figureslessthan onemillionyenhavebeenroundedoff. Total Assets Power Plants Other Property, PlantandEquipment Investments andOtherAssets Construction inProgress Transformation Facilities Transmission Facilities Internal CombustionPowerGenerationFacilities Thermal PowerProductionFacilities Hydroelectric PowerProductionFacilities General Facilities Communication Facilities Deferred TaxAssets Long-Term Investments Under ConstructionandDisposal Notes andAccountsReceivable Cash andBankDeposits Allowance forDoubtfulAccounts Other Investments Inventories Short-Term Investments Allowance forDoubtfulAccounts Other CurrentAssets Deferred TaxAssets 1,672,846 2,013,870 2,195,897 2003/3 803,105 475,200 307,963 123,252 189,173 189,173 182,027 11,730 47,320 27,527 43,319 77,438 28,598 60,136 11,201 50,757 50,118 2,592 2,049 7,827 (98) (63) — 1,623,367 1,945,140 2,076,107 2004/3 289,771 746,203 506,703 131,958 160,832 160,832 130,967 10,983 43,795 25,909 28,982 27,804 44,270 86,081 49,722 28,844 11,750 1,688 7,918 4,943 (81) (17) — 1,547,374 1,890,001 2,021,655 2005/3 276,661 686,072 499,017 144,135 170,613 170,613 131,654 10,071 41,605 23,961 27,877 30,351 46,150 95,031 52,150 29,383 13,158 9,985 2,954 1,551 5,083 (24) (1) 1,438,443 1,827,868 1,964,667 2006/3 613,349 481,068 257,253 136,798 114,600 161,564 199,524 199,524 38,605 16,931 28,336 22,065 42,944 56,484 28,961 25,999 18,160 9,170 4,018 5,635 1,556 — (0) 1,351,994 1,861,818 1,999,794 2007/3 (Millions ofyen) 242,675 555,959 469,750 180,325 227,430 248,710 248,710 137,976 15,471 21,928 36,581 43,094 33,682 35,029 20,783 47,204 29,214 9,626 4,223 5,421 (213) 376 (53) Current Liabilities Long-Term Liabilities Liabilities Shareholders’ Equity Net Assets Total Liabilities,MinorityInterestsandShareholders’Equity Total Shareholders’Equity Shareholders’ Equity Minority Interests Total Liabilities Reserves UnderSpecialLaws Valuation andTranslationAdjustments Minority Interests Total Liabilitiesand NetAssets Total NetAssets Other Allowances Accrued EmployeeRetirementBenefits Long-Term Loans Bonds Treasury Stock Foreign Currency Translation Adjustments Unrealized GainonOtherSecurities Retained Earnings Capital Surplus Common Stock Reserve forFluctuationinWaterLevels Deferred TaxLiabilities Other Allowances Income andOtherTaxesPayable Notes andAccountsPayable Commercial Paper Short-Term Loans Current PortionofLong-TermDebtandOther Other Long-TermLiabilities Deferred TaxLiabilities Other CurrentLiabilities Retained Earnings Capital Surplus Common Stock Unrealized GainonOtherSecurities Treasury Stock Foreign Currency Translation Adjustments GainandLoss Deferred Hedging 1,783,728 2,195,897 2,026,216 2003/3 928,375 804,751 105,845 242,487 168,301 99,528 70,600 49,138 19,082 56,717 51,179 (1,795) 9,324 1,133 1,379 338 329 (31) — — — — — — — — — — — — — — — — — — — 1,510,088 2,076,107 1,715,943 2004/3 123,213 152,449 625,116 829,751 205,165 359,645 14,515 12,776 40,000 40,466 57,595 49,546 81,849 39,713 (1,605) 5,014 3,738 404 254 519 689 689 — — — — — — — — — — — — — 95 1 1,286,912 2,021,655 1,629,115 2005/3 152,121 152,449 639,929 591,171 105,000 111,163 340,405 391,327 21,783 11,053 50,750 45,729 81,849 40,562 (1,299) 9,307 6,207 1,212 1,798 1,798 460 314 — — — — — — — — — — — — 90 (1) 0 1,215,033 1,964,667 1,530,432 2006/3 182,760 152,449 111,000 106,772 313,999 644,340 521,684 433,028 36,233 20,867 24,436 11,756 14,050 81,849 40,713 1,935 9,936 1,206 1,399 1,399 417 273 602 (17) — — — — — — — — — — — — 0 1,193,139 1,537,140 1,999,794 2007/3 (Millions ofyen) 444,956 152,449 210,713 173,638 341,844 576,615 573,229 462,654 16,230 (4,131) 32,611 47,595 13,248 95,944 81,849 14,271 6,090 1,468 8,752 2,115 8,948 1,260 2,155 2,155 528 474 (56) — — — — — — — — — 21 17 Financial Condition Consolidated 18 Financial Condition Consolidated StatementsofIncome Ordinary Income Total OrdinaryExpenses Total OrdinaryRevenues Note: Figureslessthanonemillionyenhavebeenroundedoff. Net Income Minority InterestsorLosses Income Taxes Income beforeTaxesandMinorityInterests (Operating Income (Provision for)ReversalofReserveforFluctuationinWaterLevels Non-Operating Expenses Operating Expenses Non-Operating Revenues Operating Revenues Other Other Equity IncomeofAffiliates Interest Income Dividend Income Other Electric Power Investment LossonEquityMethod Interest Expenses Other Electric Power Provision forReserveFluctuationinWaterLevels Deferred Current Reversal ofReserveforFluctuationinWaterLevels 2003/3 134,201 407,131 449,920 587,351 545,824 584,122 551,828 101,908 38,297 42,789 35,522 14,771 87,136 20,725 20,850 35,522 (6,480) 1,684 3,228 518 750 275 426 — — — — 2004/3 132,138 386,463 437,715 573,921 522,922 569,854 529,475 46,931 51,251 44,446 83,519 91,759 27,623 16,222 43,757 1,556 4,067 8,239 (309) 804 794 912 689 689 220 — — 2005/3 111,885 431,678 482,489 598,255 547,960 594,375 541,162 46,414 50,810 57,093 50,881 58,673 35,559 22,909 55,984 (2,511) 1,241 3,880 1,792 1,108 1,108 6,479 1,311 846 — — 27 2006/3 573,198 621,933 101,469 469,720 520,464 629,553 561,646 50,744 48,734 67,906 35,732 41,182 43,577 26,151 68,305 (1,488) 1,937 7,620 2,928 2,042 5,449 (399) (399) 711 — — 65 2007/3 (Millions ofyen) 523,782 573,277 530,775 444,463 496,136 586,289 55,513 12,054 22,585 34,639 51,673 13,011 49,494 35,167 18,461 54,757 77,141) 1,384 5,167 5,560 1,431 (302) 899 756 756 — — Consolidated StatementsofCashFlows Cash Flows fromOperating Activities Cash Flows fromFinancing Activities Cash Flows fromInvesting Activities Net (Decrease) Increase inCashandEquivalents Foreign CurrencyTranslationAdjustments onCashandEquivalents Note: Figureslessthan onemillionyenhavebeenroundedoff. Cash andEquivalents atEndofthePeriod Increase inCashfromthe Addition of ConsolidatedSubsidiaries Cash andEquivalentsatthe Beginning oftheYear Net CashUsedinInvestingActivities Net CashProvidedbyOperatingActivities Net CashUsedinFinancingActivities (Decrease) IncreaseinReserveforFluctuationWaterLevels (Decrease) IncreaseinAccruedEmployeeRetirementBenefits Loss onDisposalofProperty,PlantandEquipment Loss onImpairmentofFixedAssets Depreciation Income beforeTaxesandMinorityInterests Loss (Gain)onSaleofFixedAssets Investment (Profit)LossonEquityMethod (Decrease) IncreaseinNotesandAccountsPayable (Increase) DecreaseinInventories (Increase) DecreaseinNotesandAccountsReceivable Interest Expenses Interest andDividends Proceeds fromLong-TermLoans Redemption ofBonds Proceeds fromIssuanceofBonds Others Proceeds fromCashandEquivalentsDuetoInclusioninConsolidation Proceeds fromCollectionsofInvestmentsandAdvances Payments forInvestmentsandAdvances Proceeds fromSalesofProperty,PlantandEquipment Proceeds fromConstructionGrants Payments forPurchaseofProperty,PlantandEquipment Income TaxesPaid Interest Paid Interest andDividendsReceived Others Repayment ofLong-TermLoans Repayment ofShort-TermLoans Proceeds fromShort-TermLoans Others Dividends PaidtoMinorityInterests Dividends Paid Payments forPurchaseofConsolidatedSubsidiaries’Equity Redemption ofCommercialPaper Proceeds fromIssuanceofCommercialPaper Issuance ofCommonStock Subtotal (117,709) (306,020) (157,397) 2003/3 137,148 269,273 101,775 167,368 246,256 117,194 (11,030) (87,383) (33,500) (42,207) (78,877) (15,661) 35,522 87,136 20,000 38,658 59,787 21,128 (2,850) (1,268) (4,236) 2,047 2,914 1,142 3,126 1,140 3,981 5,069 3,958 (275) (749) 649 — — — — — — — — — 29 (6) (147,516) (499,603) (256,087) 2004/3 131,380 287,572 179,948 166,035 239,730 163,115 (64,507) (32,260) (87,223) (22,250) (52,337) (21,724) (45,010) (44,000) 43,757 23,639 83,519 49,988 83,998 27,673 59,787 (1,707) (4,236) (1,439) 4,406 2,464 1,323 7,056 3,124 (326) (184) (804) (359) 689 407 258 147 — — — 49 94 (7) (111,798) (279,910) (284,000) (188,902) 2005/3 125,339 238,042 172,637 198,485 348,994 (60,586) (51,940) (19,952) (57,825) (15,322) (64,497) 55,984 50,881 89,952 13,678 73,600 30,221 27,673 (1,471) (2,874) (3,817) (2,087) (1,424) (5,410) 1,959 1,311 1,151 1,108 3,748 1,857 6,504 4,386 2,276 (108) 303 543 270 — — 17 (1) 8 (103,613) (234,090) (117,473) (154,964) (575,000) 2006/3 135,019 233,621 149,360 173,954 131,587 128,547 580,977 (72,326) (36,472) (14,180) (68,449) (25,800) (12,472) 68,305 15,987 35,732 28,874 30,221 (5,080) (3,244) (1,693) (9,495) (2,042) (1,810) (2,649) (1,905) 2,735 2,606 2,931 1,396 7,881 (399) (167) 729 291 346 (15) (71) — — — (155,407) (432,000) 2007/3 (Millions ofyen) 123,083 157,241 205,665 416,666 (59,067) (70,345) (95,889) (29,151) (21,934) (47,749) (44,436) 54,757 11,383 22,585 89,636 62,811 22,084 34,575 28,874 (2,168) (4,076) (2,585) (5,560) (2,205) (2,284) (9,989) 2,295 2,710 3,484 1,520 8,383 2,661 2,250 5,704 (379) 347 756 331 (84) (39) — — 24 (3) 19 Financial Condition Consolidated 20 Financial Condition Composition ofConsolidatedRevenuesandExpenses 150 300 450 600 750 (Billions ofyen) Composition ofOperatingRevenues Non-Operating Revenues Note: Figureslessthanonemillionyenhavebeenroundedoff. Ordinary Income Non-Operating Expenses Operating Income Operating Expenses Operating Revenues 0 Other Interest Expenses Other Electric Power Other Electric Power Other Depreciation andAmortizationCost Taxes andDuties Consignment Cost Repair Expense Fuel Cost Personnel Expenses Electric Power 03/3 04/3 Other 05/3 06/3 07/3 2003/3 134,201 134,043 407,131 449,920 545,824 584,122 101,908 42,789 52,097 23,312 25,126 36,189 86,438 49,923 38,297 35,522 14,771 87,136 3,228 100 200 300 400 500 (Billions ofyen) Composition ofElectricPowerOperatingExpenses 0 T Personnel expenses axes andduties 2004/3 132,138 128,395 386,463 437,715 522,922 569,854 03/3 51,251 51,089 23,984 26,193 28,652 85,927 42,220 46,931 44,446 83,519 91,759 8,239 4,067 04/3 2005/3 Depreciation andamortization Fuel cost 111,885 122,016 116,622 431,678 482,489 547,960 594,375 50,810 52,846 24,974 34,000 47,452 33,764 46,414 57,093 50,881 58,673 7,790 3,880 05/3 Repair expense 2006/3 101,469 131,511 160,823 469,720 520,464 573,198 621,933 50,744 56,022 29,959 31,418 38,712 21,273 48,734 67,906 35,732 41,182 5,449 7,620 06/3 Other Consignment cost 2007/3 (Millions ofyen) 118,588 149,865 444,463 496,136 523,782 573,277 07/3 55,513 12,054 22,585 34,639 13,011 77,141 51,673 47,246 28,566 31,785 41,175 27,235 49,494 (Billions ofyen) Non-Consolidated FinancialHighlights Operating Revenues/OperatingIncome/Or 3,000 1,000 2,000 4,000 5,000 100 150 200 250 300 (Y Net IncomeperShar Return onEquity(ROE)(%) Number ofEmployees Equity Ratio(%) Total Assets Net Assets Net Income Ordinary Income Operating Income Operating Revenues Notes: Payout Ratio(%) Cash DividendsperShare(Yen) Number ofSharesOutstanding(Thousand)(Note3) Price Book-ValueRatio(PBR)(Times)(Note2) Price EarningsRatio(PER)(Times)(Notes1and2) Net AssetsperShare(BPS)(Yen) Net IncomeperShare(EPS)(Yen)(Note1) Return onAssets(ROA)(%) 50 en) 0 0 3. InthefiscalyearendedinMarch2006,anadditional68,208,000shareswereallocatedthroughathird-partystockoffering. closingpriceoftheCompany’ssharesatendfiscalyear. 2. J-POWERshareslistedontheFirstSectionofTokyoStockExchangeinfiscal year endedMarch31,2005.Thesharepriceusedforcomputationpurposesisthe 1. J-POWERcarriedouta1.2-for-1stocksplitonMarch1,2006.Calculationsassumethatthiswasatthebeginningofthefiscalyear. Operating revenues Net incomepershare(EPS) 03/3 03/3 04/3 e (EPS)(left)/NetAssetsperShar 04/3 Operating income 05/3 Net assetspershare(BPS) 05/3 06/3 Ordinar 06/3 dinary Income y income 07/3 e (BPS)(right) 07/3 1,000 1,500 2,000 2,500 3,000 (Y 500 en) 0 2,137,705 2,174.85 2003/3 153,603 124,668 546,209 17,121 27,275 241.69 70,600 60.00 3,070 11.6 24.7 — 7.2 0.8 — 15 30 45 60 75 (Y Cash DividendsperShar 10 15 20 (%) Retur 0 0 5 en) Cash dividendspershare n onEquity(ROE)(left)/Retur 2,004,703 Return onequity(ROE) 2,437.04 2004/3 338,336 118,788 522,595 138,808 03/3 03/3 240.25 21,718 33,522 2,386 60.00 16.9 16.2 1.1 8.8 — — 04/3 04/3 1,949,660 2,666.19 2005/3 370,137 546,702 138,808 224.89 31,266 47,415 98,738 2,144 60.00 19.0 26.7 14.7 e (left)/PayoutRatio(right) 1.6 8.8 1.2 Return onassets(ROA) Payout ratio 05/3 05/3 1,888,333 n onAssets(ROA)(right) 2,393.44 2006/3 398,717 566,016 166,569 33,382 51,234 85,974 200.08 06/3 06/3 2,132 60.00 21.1 18.6 27.5 1.6 1.7 8.7 07/3 07/3 1,893,678 2,472.38 2007/3 (Millions ofyen) 411,789 517,273 166,569 23,897 37,540 60,840 143.48 2,174 60.00 41.3 21.7 41.8 2.4 1.3 5.9 0.0 0.5 1.0 1.5 2.0 (%) (%) 10 20 30 40 50 0 21 Financial Condition Non-Consolidated 22 Financial Condition Non-Consolidated BalanceSheets Non-Consolidated FinancialStatements Property, PlantandEquipment Assets Notes: Total Assets Current Assets Investments andOther Assets Construction inProgress Non-Operating Property, PlantandEquipment Incidental Business-RelatedProperty,PlantandEquipment Power Plants Transmission Facilities Thermal PowerProductionFacilities Hydroelectric PowerProductionFacilities Allowance forDoubtfulAccounts Accounts Receivable—OverseasTechnicalServices Other CurrentAssets Deferred TaxAssets Short-Term LoanstoAffiliatedCompanies Prepaid Expenses Inventories Short-Term Investments Accrued Income Accounts Receivable Allowance forDoubtfulAccounts Deferred TaxAssets Long-Term PrepaidExpenses Long-Term InvestmentsinAffiliatedCompanies Long-Term Investments Under Disposal Under Construction General Facilities Communication Facilities Transformation Facilities Acceptance Receivable Cash andBankDeposits regulations. and“overseastechnicalservicecharge inadvance”arenowrecordedas“othercurrent assets”and“othercurrentliabilities,”inaccordance withelectricutilityaccounting 2. OwingtotheabolitionofElectricPower DevelopmentPromotionLawduringthe yearendedMarch31,2004,“accountsreceivable—overseas technicalservices” 1. Figureslessthanonemillionyenhavebeen roundedoff. 1,995,277 1,462,632 2,100,181 1998/3 494,493 494,628 291,952 465,542 589,888 104,904 60,794 11,426 43,027 13,804 27,962 42,475 33,713 38,015 6,273 1,002 1,299 9,994 2,765 1,631 2,362 (375) 135 104 (94) — — — — — 2,097,306 1,392,554 2,174,729 1999/3 668,939 669,151 282,856 430,410 568,597 59,056 10,753 40,879 10,665 37,357 31,026 35,601 77,422 7,820 1,133 7,497 9,867 2,825 1,818 2,390 (269) 212 190 770 — (69) — — — — 2,204,655 2,282,881 1,400,231 2000/3 759,057 760,877 333,256 414,094 547,445 10,554 41,984 30,114 43,546 58,671 36,777 78,226 1,787 1,011 6,626 5,299 6,951 9,747 1,901 1,785 1,820 9,985 3,524 (213) 127 573 — — — (2) 2,256,302 2,356,878 1,852,826 2001/3 361,353 362,545 351,915 854,875 523,932 100,576 10,996 11,059 12,977 47,513 15,695 21,264 40,930 56,445 10,208 55,447 2,517 7,463 1,110 4,499 1,460 2,516 1,192 2,539 (237) 137 — — — (5) 2,061,262 2,260,233 1,815,694 2002/3 112,409 189,757 190,249 330,653 890,102 502,410 198,971 10,025 11,040 47,548 20,324 17,561 15,287 55,317 29,082 12,200 51,243 2,974 4,449 1,384 2,165 9,389 (367) 114 492 (20) — — — 2 1,996,701 2,137,705 1,703,333 2003/3 193,674 193,798 312,208 819,345 482,406 141,003 10,116 22,576 24,500 40,747 12,630 46,499 41,630 31,794 99,569 28,354 48,387 9,994 6,416 2,762 2,541 107 947 123 (48) (14) — — — — 1,918,851 2,004,703 1,644,724 2004/3 163,837 164,696 293,841 751,760 515,781 109,395 25,296 45,205 11,811 44,877 37,233 26,659 44,870 85,852 9,061 3,068 2,246 1,005 8,167 7,281 3,839 1,659 6,299 858 — — — — 35 3 1,856,227 1,949,660 1,545,226 2005/3 173,466 174,187 280,726 691,781 494,625 135,901 11,999 47,207 26,721 63,263 43,186 24,609 10,748 42,733 93,432 3,346 7,142 1,122 6,667 2,730 8,440 7,505 720 513 399 — — — — — 1,791,860 1,888,333 1,428,485 2006/3 200,645 200,807 261,139 619,059 475,920 161,155 16,471 51,244 23,796 78,577 56,109 22,701 39,744 96,473 6,376 3,801 5,124 1,228 5,721 3,017 9,919 6,501 (344) 161 917 493 — — — 3 1,893,678 1,338,430 1,802,277 2007/3 106,808 210,144 251,193 251,250 246,578 562,071 458,977 10,005 18,439 41,661 23,759 77,343 22,559 10,423 37,819 91,400 3,232 6,521 1,125 5,424 2,678 1,825 5,008 (446) 626 (17) — — — 56 Notes: Total Assets Current Assets Property, PlantandEquipment Assets Investments andOther Assets Construction inProgress Non-Operating Property, PlantandEquipment Incidental Business-RelatedProperty,PlantandEquipment Power Plants Allowance forDoubtfulAccounts Accounts Receivable—OverseasTechnicalServices Other CurrentAssets Deferred TaxAssets Short-Term LoanstoAffiliatedCompanies Prepaid Expenses Inventories Short-Term Investments Accrued Income Accounts Receivable Acceptance Receivable Cash andBankDeposits Allowance forDoubtfulAccounts Deferred TaxAssets Long-Term PrepaidExpenses Long-Term InvestmentsinAffiliatedCompanies Long-Term Investments Under Disposal Under Construction General Facilities Communication Facilities Transformation Facilities Transmission Facilities Thermal PowerProductionFacilities Hydroelectric PowerProductionFacilities regulations. and“overseastechnicalservicecharge inadvance”arenowrecordedas“othercurrent assets”and“othercurrentliabilities,”inaccordance withelectricutilityaccounting 2. OwingtotheabolitionofElectricPower DevelopmentPromotionLawduringthe yearendedMarch31,2004,“accountsreceivable—overseas technicalservices” 1. Figureslessthanonemillionyenhavebeen roundedoff. 2,100,181 1,462,632 1,995,277 1998/3 104,904 494,493 494,628 291,952 465,542 589,888 13,804 27,962 42,475 33,713 38,015 60,794 11,426 43,027 6,273 1,002 1,299 9,994 2,362 2,765 1,631 (375) 104 135 (94) — — — — — 2,174,729 1,392,554 2,097,306 1999/3 668,939 669,151 282,856 430,410 568,597 10,665 37,357 77,422 31,026 35,601 59,056 10,753 40,879 1,133 7,497 9,867 2,390 2,825 1,818 7,820 (269) 190 770 212 — (69) — — — — 2,282,881 1,400,231 2,204,655 2000/3 759,057 760,877 333,256 414,094 547,445 10,554 41,984 78,226 30,114 43,546 58,671 36,777 1,787 1,011 6,626 5,299 6,951 3,524 9,747 1,901 1,785 1,820 9,985 (213) 573 127 — — — (2) 2,356,878 1,852,826 2,256,302 2001/3 100,576 361,353 362,545 351,915 854,875 523,932 10,996 11,059 12,977 47,513 15,695 21,264 40,930 56,445 10,208 55,447 2,517 7,463 1,110 4,499 2,539 1,460 2,516 1,192 (237) 137 — — — (5) 2,260,233 1,815,694 2,061,262 2002/3 112,409 198,971 189,757 190,249 330,653 890,102 502,410 10,025 11,040 47,548 20,324 17,561 15,287 55,317 29,082 12,200 51,243 1,384 9,389 2,165 2,974 4,449 (367) 114 492 (20) — — — 2 1,703,333 1,996,701 2,137,705 2003/3 141,003 193,674 193,798 312,208 819,345 482,406 10,116 22,576 46,499 41,630 24,500 40,747 31,794 99,569 28,354 12,630 48,387 9,994 6,416 2,762 2,541 947 123 107 (14) (48) — — — — 1,644,724 1,918,851 2,004,703 2004/3 163,837 164,696 293,841 751,760 515,781 109,395 26,659 11,811 44,870 44,877 85,852 25,296 45,205 37,233 9,061 3,068 2,246 1,005 8,167 7,281 3,839 6,299 1,659 858 — — — — 35 3 1,545,226 1,856,227 1,949,660 2005/3 173,466 174,187 280,726 691,781 494,625 135,901 24,609 10,748 42,733 11,999 47,207 93,432 26,721 63,263 43,186 8,440 3,346 7,142 1,122 6,667 7,505 2,730 720 513 399 — — — — — 1,428,485 1,791,860 1,888,333 2006/3 200,645 200,807 261,139 619,059 475,920 161,155 22,701 39,744 16,471 51,244 96,473 23,796 78,577 56,109 9,919 6,376 3,801 5,124 1,228 5,721 6,501 3,017 (344) 161 917 493 — — — 3 1,338,430 1,802,277 1,893,678 2007/3 251,193 251,250 246,578 562,071 458,977 106,808 210,144 10,005 18,439 41,661 91,400 23,759 77,343 22,559 10,423 37,819 (Millions ofyen) 3,232 6,521 1,125 5,424 5,008 2,678 1,825 (446) 626 (17) — — — 56 23 Financial Condition Non-Consolidated 24 Financial Condition Retained Earnings Capital Surplus Common Stock Shareholders’ Equity Total Liabilitiesand�������������������� Total Shareholders’Equity Unrealized GainonSecurities Retained Earnings Legal Reserve Common Stock Shareholders’ Equity Total Liabilities Reserves UnderSpecialLaws Current Liabilities Long-Term Liabilities Liabilities Liabilities andShareholders’ Equity Notes: Total Liabilitiesand Shareholders’Equity Total Shareholders’Equity Treasury Stock Unrealized GainonSecurities Legal Reserve Reserve forFluctuationinWaterLevels Overseas TechnicalServiceChargeinAdvance Other CurrentLiabilities Advances Received Short-Term DebttoAffiliatedCompanies Deposits Received Income andOtherTaxesPayable Accrued Expenses Accrued Accounts Accounts Payable Commercial Paper Short-Term Loans Current PortionofLong-TermDebtandOther Others Accrued EmployeeRetirementBenefits Long-Term LiabilitiestoAffiliatedCompanies Long-Term AccruedLiabilities Long-Term Loans Bonds Unappropriated RetainedEarningsat theEndofTerm Voluntary Legal Reserve Additional Paid-inCapital Unappropriated RetainedEarningsattheEndofTerm General Reserve Exchange-Fluctuation PreparationReserve Reserve forSpecialDepreciation Reserve forLossfromOverseasInvestment Figures withasterisks areincludedinUnappropriatedRetained EarningsattheEndof the Term. Figures lessthanone millionyenhavebeenroundedoff. General Reserve Exchange-Fluctuation PreparationReserve Reserve forSpecialDisaster Reserve forlossfromoverseasinvestment,etc. Net Income(Included) Reserve Shareholders’ Equity

2,005,827 1,609,209 2,100,181 319,557 396,540 998,396 593,002 1998/3 16,426 70,600 13,356 23,000 15,925 94,354 12,430 20,310 5,509 1,885 3,443 7,245* 9,757 6,226 1,960 5,920 3,443 2,280 — — 329 — — — — — — — — — — 77 — — — — — — — — — — 77 95 1,153,984 1,853,784 2,174,729 2,068,820 112,070 214,554 682,117 105,908 1999/3 11,678 20,463 17,192 38,440 16,158 23,554 31,434 70,600 15,860* 8,424 1,450 3,874 4,072 1,960 5,920 3,874 1,165 354 481 481 692 — — — — — — — — — — — — — — — — — — — — 72 0 1,129,206 1,927,106 2,282,881 2,162,696 141,560 120,185 235,241 768,365 2000/3 16,857 10,000 13,649 41,790 28,967 27,426 45,308 70,600 12,702* 6,401 3,780 1,960 8,620 5,920 4,276 4,276 1,401 293 559 349 349 867 — — — — — — — — 18 — — — — — — — — — — 7 2 1,042,951 1,924,154 2,356,878 2,226,241 157,411 301,738 848,311 130,637 2001/3 70,600 13,563 12,665 17,803 31,075 62,500 29,403 28,364 25,000 55,329 14,757* 1,960 1,840 3,446 4,707 4,707 2,027 2,563 286 349 349 — — — — — — — — — — — — — — — — — — — 10 31 5 2,119,090 2,260,233 1,825,121 141,143 114,000 293,968 957,078 829,761 2002/3 70,600 90,900 28,330 35,000 65,302 15,491 21,024 17,303 28,893 35,351 14,711* 1,960 1,809 5,138 5,138 3,324 2,852 102 904 285 — — — — — — 11 69 — — — — — — — — — — — — — 30 8 2,137,705 1,984,101 1,766,650 153,603 103,487 217,450 923,200 804,751 2003/3 30,692 45,000 46,997 83,259 70,600 15,171 16,751 16,415 52,900 37,587 2,161 1,960 5,569 3,970 5,787 1,105 (255) 493 258 — — — — — — — — — — — — — — — — — — — — 30 53 6 5 2,004,703 1,666,367 1,487,194 338,336 100,683 152,449 178,484 614,784 829,751 2004/3 57,002 81,849 81,849 12,845 38,600 37,661 55,000 15,171 40,000 54,960 38,237 3,353 1,960 5,999 8,994 4,473 1,853 3,328 1,092 689 689 674 423 487 — — — — — — 10 — — — — — — — — — — 51 1,949,660 1,579,522 1,253,566 105,000 370,137 129,979 152,449 107,593 324,157 619,495 591,171 2005/3 74,887 81,852 81,852 47,000 49,062 72,861 24,857 18,708 10,994 34,409 3,446 5,858 1,960 6,029 1,798 1,798 1,610 4,309 7,533 956 399 236 — — — — — — 14 (1) — — — — — — — — — 51 1,888,333 1,489,616 1,182,685 152,449 103,954 398,717 150,819 111,000 305,531 625,039 521,684 2006/3 81,852 81,852 16,699 13,613 49,892 92,861 94,897 30,099 23,000 25,089 1,960 6,029 1,399 1,399 2,424 9,961 4,254 3,495 9,910 413 229 961 (17) — — — — — — — 19 — — — — — — — — 56 Notes: Total Liabilitiesand Shareholders’Equity Total Shareholders’Equity Treasury Stock Unrealized GainonSecurities Retained Earnings Capital Surplus Common Stock Shareholders’ Equity Total Liabilitiesand�������������������� Total Shareholders’Equity Unrealized GainonSecurities Retained Earnings Legal Reserve Common Stock Shareholders’ Equity Total Liabilities Reserves UnderSpecialLaws Current Liabilities Long-Term Liabilities Liabilities Liabilities andShareholders’ Equity Unappropriated RetainedEarningsat theEndofTerm Voluntary Legal Reserve Additional Paid-inCapital Unappropriated RetainedEarningsattheEndofTerm General Reserve Exchange-Fluctuation PreparationReserve Reserve forSpecialDepreciation Reserve forLossfromOverseasInvestment Legal Reserve Reserve forFluctuationinWaterLevels Overseas TechnicalServiceChargeinAdvance Other CurrentLiabilities Advances Received Short-Term DebttoAffiliatedCompanies Deposits Received Income andOtherTaxesPayable Accrued Expenses Accrued Accounts Accounts Payable Commercial Paper Short-Term Loans Current PortionofLong-TermDebtandOther Others Accrued EmployeeRetirementBenefits Long-Term LiabilitiestoAffiliatedCompanies Long-Term AccruedLiabilities Long-Term Loans Bonds Figures withasterisks areincludedinUnappropriatedRetained EarningsattheEndof the Term. Figures lessthanone millionyenhavebeenroundedoff. General Reserve Exchange-Fluctuation PreparationReserve Reserve forSpecialDisaster Reserve forlossfromoverseasinvestment,etc. Net Income(Included) Reserve Shareholders’ Equity

2,005,827 1,609,209 2,100,181 319,557 396,540 998,396 593,002 1998/3 70,600 16,426 13,356 23,000 15,925 94,354 12,430 20,310 3,443 5,509 1,885 7,245* 9,757 6,226 1,960 5,920 3,443 2,280 — — 329 — — — — — — — — — — 77 — — — — — — — — — — 77 95 2,174,729 2,068,820 1,153,984 1,853,784 112,070 214,554 682,117 105,908 1999/3 23,554 31,434 70,600 11,678 20,463 17,192 38,440 16,158 15,860* 8,424 1,450 3,874 4,072 1,960 5,920 3,874 1,165 481 481 692 354 — — — — — — — — — — — — — — — — — — — — 72 0 2,282,881 2,162,696 1,129,206 1,927,106 120,185 141,560 235,241 768,365 2000/3 10,000 16,857 27,426 45,308 70,600 13,649 41,790 28,967 12,702* 1,960 6,401 3,780 5,920 4,276 4,276 1,401 8,620 349 349 867 293 559 — — — — — — — — 18 — — — — — — — — — — 2 7 2,356,878 2,226,241 1,042,951 1,924,154 130,637 157,411 301,738 848,311 2001/3 70,600 28,364 25,000 55,329 13,563 12,665 17,803 31,075 62,500 29,403 14,757* 1,960 4,707 4,707 2,027 2,563 1,840 3,446 349 349 286 — — — — — — — — — — — — — — — — — — — 10 31 5 2,119,090 1,825,121 2,260,233 141,143 114,000 293,968 957,078 829,761 2002/3 70,600 90,900 15,491 21,024 17,303 28,893 35,351 28,330 35,000 65,302 14,711* 1,960 1,809 5,138 5,138 3,324 2,852 102 904 285 — — — — — — 11 69 — — — — — — — — — — — — — 30 8 2,137,705 1,984,101 1,766,650 103,487 217,450 923,200 804,751 153,603 2003/3 30,692 45,000 46,997 83,259 70,600 15,171 16,751 16,415 52,900 37,587 2,161 1,105 1,960 5,569 3,970 5,787 (255) 493 258 — — — — — — — — — — — — — — — — — — — — 30 53 6 5 2,004,703 1,666,367 1,487,194 614,784 829,751 338,336 100,683 152,449 178,484 2004/3 57,002 81,849 81,849 12,845 38,600 15,171 40,000 54,960 38,237 37,661 55,000 8,994 4,473 1,853 3,328 1,092 3,353 1,960 5,999 689 689 674 423 487 — — — — — — 10 — — — — — — — — — — 51 1,579,522 1,949,660 1,253,566 105,000 370,137 129,979 152,449 107,593 324,157 619,495 591,171 2005/3 47,000 74,887 81,852 81,852 24,857 18,708 10,994 34,409 49,062 72,861 3,446 5,858 1,960 6,029 1,798 1,798 1,610 4,309 7,533 956 399 236 — — — — — — 14 (1) — — — — — — — — — 51 1,489,616 1,182,685 1,888,333 152,449 103,954 398,717 150,819 111,000 305,531 625,039 521,684 2006/3 16,699 81,852 81,852 30,099 23,000 25,089 13,613 49,892 92,861 94,897 (Millions ofyen) 9,961 4,254 3,495 9,910 1,960 6,029 1,399 1,399 2,424 229 961 413 (17) — — — — — — — 19 — — — — — — — — 56 Current Liabilities Long-Term Liabilities Liabilities Liabilities andNet Assets Note: Figureslessthanonemillionyenhavebeenroundedoff. Total LiabilitiesandNetAssets Total NetAssets Valuation andTranslationAdjustments Shareholders’ Equity Net Assets Total Liabilities Reserves UnderSpecialLaws Treasury Stock Retained Earnings Capital Surplus Common Stock Short-Term DebttoAffiliatedCompanies Deposits Received Accrued Accounts Commercial Paper Short-Term Loans Current PortionofLong-TermDebtandOther Long-Term AccruedLiabilities Long-Term Loans Bonds Income andOtherTaxesPayable Accrued Expenses Accounts Payable Others Accrued EmployeeRetirementBenefits Long-Term LiabilitiestoAffiliatedCompanies Deferred HedgingGainandLoss Unrealized GainonOtherSecurities Other Reserve Legal Reserve Additional Paid-inCapital Reserve forFluctuationinWaterLevels Overseas TechnicalServiceChargeinAdvance Other CurrentLiabilities Advances Received Deferred RetainedEarnings General Reserve Exchange-Fluctuation PreparationReserve Reserve forSpecialDisaster

1,136,290 1,893,678 1,481,888 2007/3 170,884 343,441 533,539 573,229 411,789 117,861 158,638 164,667 152,449 398,912 12,761 12,877 38,778 81,852 81,852 41,041 10,643 12,219 95,944 21,543 (Millions ofyen) 1,960 4,404 3,713 2,000 7,955 6,029 2,155 2,155 1,865 116 334 389 (56) — 38 17 4 25 Financial Condition Non-Consolidated 26 Financial Condition (Operating Income Non-Consolidated StatementsofIncome Notes: Net Income Income before Income Taxes Ordinary Income Total OrdinaryExpenses Non-Operating Expenses Operating Expenses Total OrdinaryRevenues Non-Operating Revenues Operating Revenues Non-Operating Expenses Expenses onOverseasTechnicalService Income Taxes Loss Extraordinary (Provision for)ReversalofReserveforFluctuationinWaterLevels Financial Expenses Incidental BusinessExpenses Electric Power Non-Operating Revenues Income fromOverseas Technical Service Financial Revenues Incidental BusinessRevenues Electric Power Non-Business Expenses Expenses onOverseasTechnicalService Deferred Current Unrealized LossonSecurities Loss onSaleofFixedAssets Reversal ofAccruedEmployeeRetirementBenefits Reversal ofReserveforFluctuationinWaterLevels Provision forReserveFluctuationinWaterLevels Amortization ofBondIssueDiscount Amortization ofBondIssueExpenses Bond IssueExpenses Amortization ofStockIssueExpenses Interest Expenses Enterprise Tax General andAdministrativeExpenses Communication Expenses Selling Expenses Transformation Expenses Transmission Expenses Power PurchasedfromOtherCompanies Thermal PowerProductionExpenses Hydroelectric PowerProductionExpenses Non-Business Revenues Income fromOverseasTechnicalService Interest Income Dividend Income Other ElectricityRevenues Transmission Revenues Electric PowerSalestoOtherCompanies 31,2003.Also“income fromandexpensesonoverseastechnical service”becameincludedunder“non-operating incomeandexpenses.” revenuesandexpenses” wererenamedas“financialrevenue andexpense,”which became includedunder“non-operating incomeandexpenses”fromtheyear endedMarch 2. Correspondingto the revisionofelectricutilityaccountingregulations, thedisclosure of“operatingrevenues”and expenses”beganand“electricityfinancial 1. Figureslessthanone millionyenhavebeenroundedoff. Other Loss onSaleofFixedAssets Other Gain onExchangeFluctuation Gain onSaleofFixedAssets 1998/3 372,563 416,849 213,974 478,543 476,217 461,881 103,654 68,004 59,368 16,584 16,662 85,655 86,537 46,965 22,933 1,505 1,274 1,274 1,505 1,613 1,613 7,245 9,339 1,274 7,179 4,671 1,032 7,801 589 — — — 101 101 611 382 499 — — — — — 14 77 — — — — — — — — 82 22 77 4 0 1999/3 345,367 454,289 392,474 451,543 421,829 106,176 186,722 66,976 59,069 15,860 16,195 32,056 32,459 70,938 72,694 48,518 23,395 2,618 1,353 2,618 7,606 2,618 1,149 1,149 1,353 1,203 6,804 4,496 573 846 737 768 768 623 403 403 552 — — — — — 49 — — — — — — — — — — — — 31 0 2000/3 452,808 419,889 105,837 175,389 344,493 385,719 450,330 62,287 12,702 13,326 20,405 12,645 12,645 32,919 71,096 72,784 48,515 32,688 69,240 (5,622) 1,246 1,248 1,248 1,362 1,362 1,218 5,874 4,524 7,317 1,651 1,651 2,324 (131) (131) 469 941 330 416 416 387 409 — — — — — 86 22 — — — — — — — — 2 3. Owing to the abolition of the Electric Power Development Promotion Law during the year ended March 31, 2004, incidental business revenues and expenses that formerly had formerly that expenses and revenues business incidental 2004, 31, March ended year the during Law Promotion Development Power Electric the of abolition the to Owing 3. 2001/3 465,158 110,369 206,632 384,937 500,493 425,184 495,307 ness revenuesandexpenses” andbecameincludedunder“operating revenuesandexpenses” inaccordancewithelectric utilityaccountingregulations. busi “incidental renamed were expenses” administrative and “general and revenues” electricity “other service,” technical overseas on expenses and from “income in recorded been 14,757 15,583 23,664 11,670 11,670 35,334 75,207 76,718 54,815 35,243 67,672 67,095 (6,677) 2,280 2,280 1,221 1,221 2,278 6,465 4,713 8,492 2,969 3,492 3,492 1,534 1,534 3,026 538 904 116 159 972 523 — — — — — — — — — — — — — — — 42 1 2002/3 513,687 113,492 251,755 434,241 550,571 477,849 547,733 10,117 10,117 14,711 13,819 23,386 13,845 36,883 10,106 67,778 68,022 61,757 34,488 64,999 67,183 (5,144) 1,306 1,306 5,951 7,894 7,140 4,732 8,419 1,592 1,592 2,701 (349) (349) 947 511 631 631 192 613 244 120 421 — — — — — — — — — — — — — 10 2003/3 101,047 421,541 522,588 124,668 241,524 421,541 549,864 473,567 546,209 546,209 12,728 17,121 17,570 27,275 27,275 12,129 86,866 86,946 63,574 32,963 62,309 66,739 (7,417) 1,372 1,372 1,089 7,097 4,955 8,157 1,675 1,675 3,654 5,902 958 834 888 390 598 699 — — — — — — — — — — — — — — — — 80 54 2004/3 522,595 403,807 491,911 118,788 226,968 400,754 525,434 453,478 518,978 21,718 10,592 32,833 33,522 83,236 84,024 88,104 56,662 32,529 64,292 63,398 4,080 1,031 1,050 1,788 4,069 3,053 6,787 4,880 7,711 2,839 3,617 2,100 1,077 922 711 522 689 689 192 583 — — — — — — — — — — — — — — 12 10 18 2005/3 503,158 262,271 442,754 447,964 550,573 476,335 540,665 546,702 31,266 18,151 46,306 47,415 50,374 51,044 55,193 58,229 32,391 68,883 61,194 98,738 (3,111) 4,149 1,171 1,187 2,683 1,108 1,108 4,126 5,210 7,067 5,384 7,577 1,841 3,871 6,037 3,136 621 948 842 — — — — — — — — — — — — — — — 23 48 16 2006/3 480,041 520,000 308,191 473,056 571,234 495,061 558,306 566,016 33,382 20,143 51,633 51,234 35,088 35,737 39,958 38,571 35,250 69,844 58,255 85,974 (1,892) 4,220 1,439 1,779 1,890 3,327 4,094 6,985 7,285 5,655 6,737 2,521 5,218 7,709 4,989 (399) (399) 806 126 590 111 — — — — — — — — — — — — — 49 10 81 2007/3 488,119 290,013 450,203 456,433 525,659 450,034 510,248 517,273 60,840) 23,897 11,865 36,783 37,540 10,117 10,121 21,276 21,565 31,686 44,837 30,502 63,728 55,184 1,020 6,229 6,662 6,191 1,237 6,595 3,494 3,865 3,586 4,521 8,386 7,024 5,029 756 756 288 433 370 935 — — — — — — — — — — — — — — — 4

- (Operating Income Notes: Net Income Income before Income Taxes Ordinary Income Total OrdinaryExpenses Non-Operating Expenses Operating Expenses Total OrdinaryRevenues Non-Operating Revenues Operating Revenues Income Taxes Loss Extraordinary (Provision for)ReversalofReserveforFluctuationinWaterLevels Non-Operating Expenses Expenses onOverseasTechnicalService Financial Expenses Incidental BusinessExpenses Electric Power Non-Operating Revenues Income fromOverseas Technical Service Financial Revenues Incidental BusinessRevenues Electric Power Deferred Current Unrealized LossonSecurities Loss onSaleofFixedAssets Reversal ofAccruedEmployeeRetirementBenefits Reversal ofReserveforFluctuationinWaterLevels Provision forReserveFluctuationinWaterLevels Non-Business Expenses Expenses onOverseasTechnicalService Amortization ofBondIssueDiscount Amortization ofBondIssueExpenses Bond IssueExpenses Amortization ofStockIssueExpenses Interest Expenses Enterprise Tax General andAdministrativeExpenses Communication Expenses Selling Expenses Transformation Expenses Transmission Expenses Power PurchasedfromOtherCompanies Thermal PowerProductionExpenses Hydroelectric PowerProductionExpenses Non-Business Revenues Income fromOverseasTechnicalService Interest Income Dividend Income Other ElectricityRevenues Transmission Revenues Electric PowerSalestoOtherCompanies 31,2003.Also“income fromandexpensesonoverseastechnical service”becameincludedunder“non-operating incomeandexpenses.” revenuesandexpenses” wererenamedas“financialrevenue andexpense,”which became includedunder“non-operating incomeandexpenses”fromtheyear endedMarch 2. Correspondingto the revisionofelectricutilityaccountingregulations, thedisclosure of“operatingrevenues”and expenses”beganand“electricityfinancial 1. Figureslessthanone millionyenhavebeenroundedoff. Other Loss onSaleofFixedAssets Other Gain onExchangeFluctuation Gain onSaleofFixedAssets 1998/3 213,974 372,563 416,849 103,654 478,543 476,217 461,881 16,584 16,662 85,655 86,537 46,965 22,933 68,004 59,368 1,505 7,245 9,339 1,274 1,274 1,274 1,505 7,179 4,671 1,032 7,801 1,613 1,613 589 — — — 382 499 101 101 611 — — — — — 14 77 — — — — — — — — 77 82 22 0 4 1999/3 106,176 186,722 345,367 454,289 392,474 451,543 421,829 15,860 16,195 32,056 32,459 70,938 72,694 48,518 23,395 66,976 59,069 2,618 2,618 7,606 1,353 2,618 1,149 1,149 1,203 6,804 4,496 1,353 846 573 403 403 552 737 768 768 623 — — — — — 49 — — — — — — — — — — — — 31 0 2000/3 452,808 419,889 105,837 175,389 344,493 385,719 450,330 62,287 12,702 13,326 20,405 12,645 12,645 32,919 71,096 72,784 48,515 32,688 69,240 (5,622) 1,246 2,324 1,248 1,248 1,362 1,362 1,218 5,874 4,524 7,317 1,651 1,651 (131) (131) 469 941 330 416 416 387 409 — — — — — 86 22 — — — — — — — — 2 3. Owing to the abolition of the Electric Power Development Promotion Law during the year ended March 31, 2004, incidental business revenues and expenses that formerly had formerly that expenses and revenues business incidental 2004, 31, March ended year the during Law Promotion Development Power Electric the of abolition the to Owing 3. 2001/3 465,158 110,369 206,632 384,937 500,493 425,184 495,307 ness revenuesandexpenses” andbecameincludedunder“operating revenuesandexpenses” inaccordancewithelectric utilityaccountingregulations. busi “incidental renamed were expenses” administrative and “general and revenues” electricity “other service,” technical overseas on expenses and from “income in recorded been 14,757 15,583 23,664 11,670 11,670 35,334 75,207 76,718 54,815 35,243 67,672 67,095 (6,677) 2,278 2,280 2,280 1,221 1,221 6,465 4,713 8,492 2,969 3,492 3,492 1,534 1,534 3,026 538 972 904 523 116 159 — — — — — — — — — — — — — — — 42 1 2002/3 477,849 547,733 513,687 113,492 251,755 434,241 550,571 14,711 13,819 23,386 13,845 36,883 10,106 10,117 10,117 67,778 68,022 61,757 34,488 64,999 67,183 (5,144) 1,306 1,306 7,140 4,732 8,419 1,592 1,592 2,701 5,951 7,894 (349) (349) 244 947 511 120 631 631 192 421 613 — — — — — — — — — — — — — 10 2003/3 522,588 101,047 124,668 241,524 421,541 421,541 549,864 473,567 546,209 546,209 17,121 17,570 27,275 27,275 12,129 12,728 86,866 86,946 63,574 32,963 62,309 66,739 (7,417) 1,372 1,372 7,097 4,955 8,157 1,675 1,675 1,089 3,654 5,902 958 834 888 390 699 598 — — — — — — — — — — — — — — — — 80 54 2004/3 522,595 400,754 403,807 525,434 453,478 518,978 491,911 118,788 226,968 64,292 63,398 21,718 10,592 32,833 33,522 83,236 84,024 88,104 56,662 32,529 1,031 1,050 1,077 1,788 2,839 3,617 2,100 4,069 4,080 3,053 6,787 4,880 7,711 711 522 689 689 192 583 922 — — — — — — — — — — — — — — 18 10 12 2005/3 442,754 447,964 550,573 476,335 540,665 546,702 503,158 262,271 68,883 61,194 31,266 18,151 46,306 47,415 50,374 51,044 55,193 98,738 58,229 32,391 (3,111) 1,171 1,187 1,841 2,683 3,871 6,037 3,136 1,108 1,108 4,126 4,149 5,210 7,067 5,384 7,577 842 621 948 — — — — — — — — — — — — — — — 16 23 48 2006/3 473,056 480,041 571,234 495,061 558,306 566,016 520,000 308,191 69,844 58,255 33,382 20,143 51,633 51,234 35,088 35,737 39,958 85,974 38,571 35,250 (1,892) 1,779 1,890 2,521 3,327 5,218 7,709 4,989 4,094 4,220 6,985 7,285 5,655 1,439 6,737 (399) (399) 111 806 126 590 — — — — — — — — — — — — — 49 10 81 2007/3 450,203 456,433 525,659 450,034 510,248 517,273 488,119 290,013 60,840) 23,897 11,865 36,783 37,540 10,117 10,121 21,276 21,565 31,686 44,837 30,502 63,728 55,184 (Millions ofyen) 1,020 6,229 6,662 6,191 1,237 6,595 3,494 3,865 3,586 4,521 8,386 7,024 5,029 756 756 288 433 370 935 — — — — — — — — — — — — — — — 4

- 27 Financial Condition Non-Consolidated 28 Financial Condition Composition ofElectricPowerOperatingRevenues Structure ofNon-ConsolidatedRevenuesandExpensesElectricPowerBusiness Composition ofElectricPowerOperatingExpenses Operating ExpensesofElectricPowerBusiness Operating RevenuesofElectricPowerBusiness Note: Figureslessthanonemillionyenhave beenroundedoff. itemfromtheyearendedMarch31,2000. * Inaccordancewiththerevisionofelectricutilityaccountingregulations,“transmissionrevenues” formerlyincludedunder“otherelectricityrevenues”arelistedasanindependent Electric Power SalestoOtherCompanies Variable Expenses Fixed Expenses Other ElectricityRevenues Transmission Revenues* Waste DisposalCost Fuel Cost Other Depreciation andAmortizationCost Taxes andDuties Repair Expense Personnel Expenses Transmission Revenues(Included)* Thermal Hydro 100 200 300 400 500 600 (Billions ofyen) 0 Right: Left: 111,972 122,997 249,565 372,563 416,849 476,217 272,851 143,997 1998/3 1998/3 11,025 53,835 93,943 25,277 33,814 42,693 57,292 59,368 Operating RevenuesofElectricPowerBusiness Operating ExpensesofElectricPowerBusiness — 253,197 345,367 392,474 451,543 246,830 145,643 1999/3 1999/3 83,444 92,169 51,311 94,451 26,480 35,152 45,801 57,259 59,069 8,725 — 253,708 344,493 385,719 450,330 241,604 144,114 2000/3 2000/3 80,926 90,784 53,071 98,918 24,726 32,494 44,497 62,287 9,858 2,324 — 425,184 126,756 292,077 384,937 281,084 144,100 495,307 2001/3 2001/3 11,363 81,497 92,860 53,477 25,788 34,730 51,324 67,095 3,026 — 477,849 107,118 149,175 327,122 434,241 547,733 339,947 137,901 2002/3 2002/3 12,364 94,753 62,035 28,824 32,718 54,367 67,183 2,701 — 101,252 137,736 473,567 320,288 421,541 335,371 138,195 546,209 50,057 2003/3 2003/3 12,758 88,494 64,545 28,379 39,570 66,739 5,902 — 102,072 130,376 453,478 298,681 400,754 317,719 135,758 518,978 2004/3 2004/3 14,636 87,435 64,786 29,182 30,874 43,461 63,398 2,100 — 476,335 115,838 130,689 122,825 312,064 442,754 339,228 137,106 540,665 2005/3 2005/3 14,850 73,451 29,945 52,018 33,823 61,194 3,136 — 155,977 173,626 130,844 299,429 473,056 495,061 558,306 368,250 126,810 2006/3 2006/3 17,648 75,163 29,366 42,565 21,489 58,255 4,989 — 144,053 160,706 117,973 289,497 450,203 510,248 326,543 123,490 450,034 2007/3 2007/3 16,652 70,064 27,800 46,477 27,180 55,184 5,029 (Millions ofyen) (Millions ofyen) — Composition ofElectricPowerOperatingRevenues Composition ofElectricPowerOperatingExpenses Note: Figureslessthanonemillionyenhave beenroundedoff. Operating ExpensesofElectricPowerBusiness itemfromtheyearendedMarch31,2000. * Inaccordancewiththerevisionofelectricutilityaccountingregulations,“transmissionrevenues” formerlyincludedunder“otherelectricityrevenues”arelistedasanindependent Operating RevenuesofElectricPowerBusiness Variable Expenses Fixed Expenses Other ElectricityRevenues Transmission Revenues* Electric Power SalestoOtherCompanies Waste DisposalCost Fuel Cost Other Depreciation andAmortizationCost Taxes andDuties Repair Expense Personnel Expenses Transmission Revenues(Included)* Thermal Hydro 100 200 300 400 500 600 (Billions ofyen) 0 111,972 122,997 249,565 372,563 272,851 143,997 416,849 476,217 1998/3 1998/3 57,292 59,368 11,025 53,835 93,943 25,277 33,814 42,693 — 253,197 345,367 246,830 145,643 392,474 451,543 1999/3 1999/3 83,444 92,169 51,311 94,451 26,480 35,152 45,801 57,259 59,069 8,725 — 241,604 144,114 385,719 450,330 253,708 344,493 2000/3 2000/3 80,926 90,784 53,071 98,918 24,726 32,494 44,497 62,287 2,324 9,858 — 126,756 292,077 384,937 281,084 144,100 425,184 495,307 2001/3 2001/3 11,363 81,497 92,860 53,477 25,788 34,730 51,324 67,095 3,026 — 107,118 149,175 327,122 434,241 339,947 137,901 477,849 547,733 2002/3 2002/3 94,753 62,035 28,824 32,718 54,367 12,364 67,183 2,701 — 320,288 421,541 473,567 546,209 101,252 137,736 335,371 138,195 50,057 2003/3 2003/3 12,758 88,494 64,545 28,379 39,570 66,739 5,902 — 102,072 130,376 298,681 400,754 317,719 135,758 453,478 518,978 2004/3 2004/3 14,636 87,435 64,786 29,182 30,874 43,461 63,398 2,100 — 115,838 130,689 122,825 312,064 442,754 339,228 137,106 476,335 540,665 2005/3 2005/3 14,850 73,451 29,945 52,018 33,823 61,194 3,136 — 368,250 126,810 155,977 173,626 130,844 299,429 473,056 495,061 558,306 2006/3 2006/3 17,648 75,163 29,366 42,565 21,489 58,255 4,989 — 144,053 160,706 117,973 289,497 450,203 326,543 123,490 450,034 510,248 2007/3 2007/3 16,652 70,064 27,800 46,477 27,180 55,184 5,029 (Millions ofyen) (Millions ofyen) — 29 Financial Condition Non-Consolidated Corporate Data (As of March 31, 2007)

30 Corporate History Establishment of Electric Power Development Co., Ltd. as a government-sponsored corporation under the Electric Power Development Sept. 1952 Promotion Law (Law No. 283 of July 31, 1952)

Apr. 1956 Sakuma Power Plant begins operations (350 MW output) as the Company’s first large-scale hydroelectric power generation facility Corporate Data May 1959 Tagokura Power Plant begins operations (385 MW output, hydroelectric power)

Dec. 1960 Okutadami Power Plant begins operations (560 MW output, hydroelectric power)

Sept. 1964 Ikehara Power Plant begins operations (350 MW output, hydroelectric power)

Oct. 1965 Sakuma Frequency Converter Station linking east and west Japan begins operations

Shintoyone Pumped Storage Plant begins operations (1,125 MW output) as the Company’s first large-scale pumped-storage hydroelec- Nov. 1972 tric power generation facility to exceed 1,000 MW output

Matsushima Thermal Power Plant begins operations (500 MW output × 2 generators) as the first coal-fired thermal power plant in Jan. 1981 Japan to use imported coal as fuel (Second generator begins operations in June 1981)

Matsuura Thermal Power Plant No. 1 begins operations (1,000 MW output) and becomes first coal-fired thermal power plant to achieve June 1990 1,000 MW output via a single generator

Tachibanawan Thermal Power Plant, which is equipped with Japan’s largest coal-fired single-generators, begins operations (1,050 MW July 2000 output × 2 generators) (Second generator begins operations in December 2000)

Dec. 2000 Tomamae Winvilla Wind Farm begins operations (30,600 kW output, wind power)

Apr. 2002 New No. 1 Unit of Isogo Thermal Power Plant begins operations (600 MW output, coal-fired power)

Oct. 2004 Listed on first section of

Jan. 2005 Participation in CBK Project in the Philippines (728 MW output, hydroelectric power)

May 2006 Participation in Tenaska Frontier Power Plant in the U.S. (830 MW output, gas-fired power)

Jan. 2007 Participation in Elwood Energy Power Plant in the U.S. (1,350 MW output, gas-fired power)

Feb. 2007 Koriyama-Nunobiki Kogen Wind Farm begins operations (65,980 kW output)

May 2007 Kaeng Khoi No. 2 Gas-Fired Thermal Power Station in Thailand begins operations (734 MW output) Japanese Electric Power Industry and J-POWER

Electric Power Industry in Japan Corporate Profile Directors and Corporate Auditors 31 Japan’s Electric Power Industry Structure (From April 1, 2005) Business Category Electric Utility (As of July 2007)

Date of Establishment September 16, 1952 Wholesale Power Other Special Electric President Executive Managing Senior Corporate Electric Power Companies PPS Self-Generators (Representative Director) Directors Auditors (Full-time) Companies Utilities Utilities Paid-in Capital ¥152,449,600,000 J-POWER Yoshihiko Nakagaki Yasuo Maeda Masayuki Hori Wholesale Suppliers Number of Shares Authorized 660,000,000 Kanji Shimada Akio Ushio Power Number of Shares Outstanding 166,569,600 Executive Vice Yoshihiko Sakanashi Generation Wholesale Power Exchange Number of Shareholders 36,106 Presidents Minoru Hino (Unregulated and Private) (Representative Director) Corporate Auditors Stock Exchange Listing Tokyo Shinichiro Ota Yasuo Matsushita Executive Directors Independent Public Accountants Ernst & Young ShinNihon Kiyoshi Sawabe Integrated utilities Other PPS Mutsutake Otsuka Utilities Masaharu Fujitomi handle electricity Transfer Agent The Sumitomo Trust and Banking Masayoshi Kitamura Hideaki Miyahara generation, Toshifumi Watanabe transmission and Company, Limited Masashi Hatano distribution Tomoo Kosugi Neutral Koichi Tazawa Improve transparency Organization by cutting off Wheeling Services Japanese Electric Power Industry and J-POWER Network information and (Abolishment of transfer Network accounting practices service contracts) Headquarters Domestic Network Overseas Network 15-1, Ginza 6-chome, Chuo-ku, Tokyo 104-8165, Japan Hokkaido Regional Headquarter Washington Office (U.S.A.) Retail Tel: +81-3-3546-2211 Tohoku Office Beijing Office (China) URL: http://www.jpower.co.jp East Regional Headquarter Kuala Lumpur Office (Malaysia) Chubu Regional Headquarter Hanoi Office (Vietnam) Hokuriku Office Customers in the regulated market Customers in the liberalized market West Regional Headquarter Supply Contracts Electric rates are negotiated except Chugoku Office (standard and optional) under last-resort contracts Self- Customers within Shikoku Office Consumption Specific Areas Kyushu Office

Source: Federation of Electric Power Companies of Japan

Major Group Companies (As of June 30, 2007) Power Generating Facilities and Power Generated by Electric Power Utilities (As of March 31, 2007) Company name Location Website Main business Entities Wholesale Power Companies Publicly Held Power Producer Electric Power Special Electric Total of Electric Japan Atomic Companies and Supplier Operation of welfare facilities; facility maintenance; business process outsourc- Companies J-POWER Utilities Power Utilities http://www.jpbs.co.jp Source Power and Others (PPS) JP Business Service Corporation Koto-ku, Tokyo ing; development of computer software Hydro Construction, technical development, design, consulting, maintenance and research for hydroelectric power plants, substations and transmission lines; Power Generating Facilities (MW) 34,286 (75) 8,556 (19) — 2,842 (6) 1 (0) — 45,658 (100) http://www.jphytec.co.jp JPHYTECH Co., Ltd. Chiyoda-ku, Tokyo surveying and compensation of construction sites; civil engineering, construc- Power Generated (GWh) 65,967 (74) 12,212 (14) — 10,820 (12) 6 (0) — 89,005 (100) tion management and construction services Thermal Construction, technical development, design, consulting, maintenance and Power Generating Facilities (MW) 120,193 (86) 7,825 (6) — 10,177 (7) 268 (0) 938 (1) 139,401 (100) research for thermal and nuclear power plants; unloading and transporting of Jpec Co., Ltd. Chuo-ku, Tokyo http://www.jpec.co.jp coal to thermal power plants; sale of fly ash; shipping of coal for thermal power Power Generated (GWh) 467,982 (81) 51,231 (9) — 55,406 (10) 1,213 (0) 4,616 (1) 580,448 (100) plants; research, construction and maintenance for environmental engineering; Nuclear research and planning for environmental conservation

Power Generating Facilities (MW) 46,850 (95) — 2,617 (5) — — — 49,467 (100) KEC Corporation Bunkyo-ku, Tokyo http://www.kec.co.jp Construction and maintenance of electronic and communications facilities Power Generated (GWh) 287,122 (94) — 17,022 (6) — — — 304,144 (100) Design and construction management of electric power facilities; engineering http://www.kdc.co.jp Others KDC Engineering Co., Ltd. Nakano-ku, Tokyo and construction Power Generating Facilities (MW) 4 (100) — — — — — 4 (100) J-POWER RESOURCES Co., Ltd. Chuo-ku, Tokyo http://www.eoc.co.jp Research, exploration and development of, and investments in coal mines

Power Generated (GWh) 5 (100) — — — — 5 (100) Corporate Data J-POWER EnTech Co., Ltd. Minato-ku, Tokyo http://www.jpower.co.jp/entech Engineering of equipment for removal of atmospheric and water pollutants Total Power Generating Facilities (MW) 201,333 (86) 16,380 (7) 2,617 (1) 13,019 (6) 269 (0) 938 (0) 234,557 (100) Power Generated (GWh) 821,077 (84) 63,443 (7) 17,022 (2) 66,225 (7) 1,219 (0) 4,616 (0) 973,602 (100) For further information, please contact: Source: Japan Electric Association Electric Power Development Co., Ltd. Notes: Figures in parentheses indicate percentage share of total generation by source. IR Group Figures for thermal include geothermal. TEL:+81-3-3546-2211 FAX:+81-3-3546-9531 Others are the total of wind power and solar power. Excluding self-generation E-mail:[email protected]