Securities Report – 92nd Fiscal Period (April 1, 2025 – March 31, 2026)

Hokuriku Electric Industry Co., Ltd. Securities Report – 92nd Fiscal Period (April 1, 2025 – March 31, 2026)

The company primarily engages in the design, manufacturing, and sale of industrial electrical equipment. This report discloses the operating results, financial position, and cash flow status for the 92nd fiscal period (April 1, 2025 to March 31, 2026) in accordance with the Financial Instruments and Exchange Act.

Regarding management policies, the company will continue developing high-efficiency, energy-saving products that contribute to a sustainable society, while expanding its lineup of smart factory-compatible products utilizing digital technologies. Strategically, the company will promote overseas market expansion, focusing on emerging markets in Asia to strengthen its sales channels.

In terms of financial condition, total assets have slightly increased compared to the previous consolidated fiscal year, with ongoing efforts to maintain liquidity. Liabilities are managed through sound financing strategies, ensuring a stable financial structure. The equity ratio remains consistent with the prior year, indicating no concerns regarding financial health.

Performance-wise, sales revenue is projected to show slight year-on-year growth, driven by recovering domestic demand and increased overseas sales. However, the company will continue monitoring fluctuations in raw material prices and foreign exchange risks, while strengthening its supply chain resilience.

Research and development expenditures are planned to increase compared to the previous year, with a focus on IoT-enabled control systems and AI-powered predictive maintenance solutions. The company is also advancing environmentally friendly technologies and has established a roadmap toward achieving carbon neutrality by 2030.

For human resource development, the company prioritizes early empowerment of young employees and cultivating global talent through overseas training programs and enhanced language education. As part of its diversity initiatives, it actively promotes female leadership and improves work-life balance.

Looking ahead, the company will strengthen open innovation and deepen collaborations with universities and research institutions to keep pace with technological advancements. Regarding shareholder returns, while maintaining stable dividends as a basic policy, the company will prioritize reinforcing long-term growth foundations through appropriate utilization of retained earnings.