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Overview of FY 2018 Management Plan

3

Corporate Vision of the HEPCO Group

Electricity sales outside of Hokkaido

Gas supply business in Hokkaido HEPCO will expand its gas supply business by initiating sales activities for customers with a view to completion of its Ishikari LNG tank and other facilities.

HEPCO has established the new Metropolitan Area Sales Dept, and is eagerly expanding its sales activities.

HEPCO will also look for business projects in which it can utilize the group’s technologies and know-how.

Items to focus on

Initiatives as a Total Energy Service Corporate Group

Efforts to achieve “Aims until FY 2019”

Management Philosophy of the HEPCO Group

● Under its FY 2017 Business Plan, HEPCO established a number of initiatives for the FY 2017‒2019 three-year period, designed to achieve its “Aims until FY 2019 .”

● Under its FY 2018 Business Plan, over the next two years leading up to the target year of FY 2019, HEPCO will strive for further growth and development by improving our competitiveness, improving our income balance, strengthening our financial standing and laying the foundation as a total energy service corporate group.

Items to be continued

Electric power industry in Hokkaido (Business foundation for HEPCO Group)

In order to achieve further growth and development as a total energy service corporate group, the HEPCO Group will develop a growth strategy to expand revenue and promote studies on electricity sales outside of Hokkaido and on gas supply including alliances with other companies.

Respect for humanity Contribution to local

communities Efficient management

・We will support the sustainable development of the region by fulfilling our responsibility for energy supply. ・Adopting a fresh perspective, we will aggressively take on challenges to achieve further growth as a total

 energy services corporate group.

・We will manage business operations in a nimble and agile manner, strengthen our business platform,  and respond to the expectations of our stakeholders.

Expansion of business units Expansion

of business areas

● Responding to competition in retail electricity

● Enhancing income/expenditure and our financial base

● Quickly resuming operations at the Tomari   Nuclear Power Station and enhancing safety

Development of peripheral businesses (energy saving proposals, ESCO, renewable energy, etc.)

● Improvement of power supply competitiveness   and secure stable supplies

● Expansion of business area

● Consideration for legal unbundling

● Contribution to environmental conservation

● To nurture and secure human resources

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