P.74 Energy Transformation Business Group

74 03. Performance & Data

Energy Transformation

Business Group Build a stable and sustainable energy system and carbon cycle to create a society full of prosperity and dreams.

Main relevant material issues

▍Quantitative information

1,600　1,200　800　400　0 15　10　5　0

FY2025 Investment｜Approx. ¥97.0 billion

Main investment areas

• Renewable energy‒related businesses in Japan and overseas

Major asset replacement

• Liquidation of gas-fired power generation business in Vietnam

▍External Environment: Business Environment

Opportunities

• Surging electricity demand driven by the expansion of data centers accompanying the widespread adoption of generative AI
• Growing concern about decarbonization and energy security
• Changing energy demand patterns, growing importance of natural gas, and gradual transition to a low-carbon economy
• Heightened energy security concerns over oil and gas and resurging hopes for renewable energy amid tensions in the Middle East

Risks

• Intensification of a competitive business environment with the entry of suppliers from emerging countries and new business operators from other industries
• Materialization of geopolitical risks and volatility in energy markets
• Changes/setbacks in national decarbonization policies/regulations and their impact on decarbonization-related businesses

▍Internal Environment: Key Strengths

• Project execution capabilities,

including financing and EPC, built through experience in power, gas, and broader energy sectors

• Our accumulated relationships with governments, partners, and customers around the world
• Earnings from trading and retail businesses supported by a strong customer base, market intelligence, and risk management

▍Business Strategy

• Leverage our strong existing energy business platform with markets and governments worldwide while driving strategic transformation through the Energy Innovation Initiative (EII), which aims to commercialize next-generation energy businesses, to sustain and expand our earnings base and build new future earning pillars
• Take a full view of each industryʼs value chain to deliver one-stop decarbonization solutions that address regional needs and thus expand our new earnings base

▍Business Development ▍Medium-Term Management Plan 2026

Initiatives in final year of medium-term management plan

• Accelerate portfolio rotation to businesses and assets with growth and strategic potential
• Develop and promote decarbonized and circular energy businesses
• Strengthen capabilities and optimize resource allocation through greater talent mobility across the Group Initiatives for next medium-term management plan
• Accelerate portfolio rotation to businesses and assets with growth and strategic potential
• Aim to build a high-value-added earnings portfolio by strengthening our trading functions and mid- to downstream businesses that complement our upstream operations and enhance overall value
• Create new businesses by strengthening our EII cross- functional capabilities and further promoting innovation

▍Key Market Trends

As a one-stop solution provider for energy, we will pursue growth by developing and expanding our decarbonized and circular energy businesses with the aim of achieving carbon neutrality by 2050.

Global investment in energy transition, by sector

Comparison of 2025 energy transition investment versus annualized levels in New Energy Outlook 2025 Net Zero Scenario $ billion (real 2025) 2025 actual 2026-2030 2031-2035 2,309 5,190 (+125%) 6,918 (+33%)

Source: Energy Transition Investment Trends 2026, BloombergNEF (January 27, 2026)

• ※Hajime Mori

Group CEO, Energy Transformation Business Group

［図の構造］Business Development (Energy Transformation Business Group)

Legend: Forestry business | Energy storage business and equipment | Bioenergy business | IPP, IWPP business | Power EPC | Gas value chain and offshore infrastructure | Carbon credit generation business

Country → Business:

The United Kingdom → Offshore wind IPP | Natural gas trading and marketing — Energy Transformation Business Group

Denmark → Bioenergy — Energy Transformation Business Group

France → Offshore wind IPP — Energy Transformation Business Group

Spain → Solar IPP — Energy Transformation Business Group

Egypt → Onshore wind IPP — Energy Transformation Business Group

Ghana → Thermal IPP | FPSO — Energy Transformation Business Group

South Africa → Onshore wind IPP — Energy Transformation Business Group

Russia → Forestry — Energy Transformation Business Group

The United Arab Emirates → Thermal IWPP — Energy Transformation Business Group

Kuwait → Thermal IWPP — Energy Transformation Business Group

Bahrain → Thermal IWPP — Energy Transformation Business Group

Qatar → LNG — Energy Transformation Business Group

India → Renewable energy development and supply | City gas — Energy Transformation Business Group

Vietnam → Thermal IPP | Hydroelectric power generation — Energy Transformation Business Group

Indonesia → Thermal IPP | Geothermal IPP | LNG | Carbon credit generation — Energy Transformation Business Group

China → Onshore wind IPP — Energy Transformation Business Group

Thailand → Thermal IPP — Energy Transformation Business Group

Philippines → Hydroelectric IPP — Energy Transformation Business Group

Australia → Thermal IPP | LNG — Energy Transformation Business Group

New Zealand → Forestry — Energy Transformation Business Group

Japan → Electricity retailing | Energy storage | Offshore and onshore wind IPP | Solar IPP | Thermal IPP | Biomass IPP | Marine fuel (Very Low Sulphur Fuel Oil) trading | LNG bunkering | Domestic power trading | LPG wholesaling | LPG retailing — Energy Transformation Business Group

The United States → Onshore wind IPP | Thermal IPP | Solar photovoltaic (PV) + battery energy storage | Energy storage facility | LNG export | Natural gas trading and marketing — Energy Transformation Business Group

Brazil → FPSO — Energy Transformation Business Group

IPP: Independent Power Producer | IWPP: Independent Water Power Producer