JERA Growth Strategy
to Realize the 2035
VisionFinancial Strategy and Financial Target Levels
Targeted for by 2035

16 May 2024 | JERA Co., Inc.
First Half of FY 2024 | Regular Press Conference Briefing Materials© 2024 JERA Co., Inc. All Rights Reserved

2Introduction

JERA’s mission is toprovide cutting-edge
solutions to the world’s
energy problems.

Never before has that mission been so critical. Driven by geopolitical events andthe climate crisis, the past two years has seen the energy trilemma take hold asgovernments, businesses and consumers struggle to achieve a balance in deliveringand consuming energy that is stable, affordable and sustainable.
JERA aims to solve is world’s energy conundrum of simultaneously delivering stable,
affordable, and sustainable energy. But we also know there is no current universal
solution and multiple forms of energy will be need to keep pace with growing global
demand.
JERA's strategy to address these challenges is based on a strategic positioning witha focus on three business areas: LNG, renewables, and hydrogen & ammonia. Since
these three businesses have complementary synergies, they can be leveraged toprovide solutions tailored to the geographic and economic characteristics of any
country or region.
To support organizational capacity and achieve high-quality solutions, JERA divides theorganization into three areas; business development, optimization and O&M. An
independent group of experts has been formed globally for each of these three areas tocreate synergies and encourage collaboration across sites and functions.
The three groups of experts will collaborate with the three businesses areas on a global
scale to provide cutting-edge solutions tailored to the markets where we currently
operate and new markets where we seek to grow. This combination is a key
differentiator for JERA that no other energy company in the world has.
© 2024 JERA Co., Inc. All Rights Reserved

3

Introduction
Today, we are announcing the JERA Growth Strategy. This strategy combines
our mission of solving the world‘s energy problems with our core three businessareas, while leveraging our unique set up.
We also present the scale of our business according to the realization of our
Growth Strategy, the income and expenditure levels we are targeting by 2035,
along with a summary of our financial strategy.
With regard to the Growth Strategy presented today, we hereby promise(CEO’s Commitments) that we will achieve concrete results that we can proudly
share with our stakeholders within the next year.
In order to realize our Growth Strategy, JERA commits to boldly tackling today’s
energy and climate crisis head on, while working hand in hand with all
stakeholders to grow and develop society. We hope that you will continue tolook forward to our growth and ask for your continued support and cooperation

Global CEO and Chair
Yukio Kani

President, Director, CEO and COO
Hisahide Okuda© 2024 JERA Co., Inc. All Rights Reserved

4

Table of Contents

1

JERA Growth
Strategy to Realize
2035 Vision

Page 5 - 15

2

Financial Strategy
and 2035 Financial
Targets

Page 16 - 20

3

Towards therealization of
JERA Zero CO2Emissions 2050

Page 21 - 30

© 2024 JERA Co., Inc. All Rights Reserved

1
JERA Growth
Strategy to
Realize 2035
01 | Our Origins and Our Destination
02 | How to Reach Our Destination: Methods and Numbers
03 | Initiatives in Three Strategic Business Areas
04 | What Holds the Keys to Success© 2024 JERA Co., Inc. All Rights Reserved

01| Our Origins and Our Destination

6

Clear achievements during 10 years since start pave the way to becoming
a global energy leader• Following 2014 decision to create• Currently, JERA supplies one third of Japan’s• Formulated practical andglobal energy leader, JERA

electricity as one of the world’s largest LNG

responsible growth strategy

completed the successful integration

buyers, delivering significant financial upside

towards 2035 leadingof all assets within 5 years.

and exceeding original targets.

decarbonization.

We are here

2014

2019

2023

2035

Agreement between Tokyo
Electric Power and Chubu
Electric Power to create“Global Energy Company”
as a 50/50 JV

Completion of full integration of all
domestic and overseas fuel-fired
businesses into JERA

Supplying 1/3 of powerin Japan and leading
decarbonization efforts

Where is JERA
headed?

¥90 billion

Net Income*1¥148.7 billion• Ensured steadyachievement of targets¥4 trillion

Total Asset¥8.5 trillion• Expanded business at atime of low interest rates

3 GW

New Domestic
Power Supply*2

7 GW

35 million tons

LNG Handling
Volume*3

35 million tons

1.5 GW

Renewables
Development
Output*2

3.5 GW

N/A

Hydrogen & Ammonia
Investment¥15 billion※1 -Excluding the effect of time lag※2 – Cumulative Development Capacity※3 – Including trading volume• Secured and delivered
stable supply in Japan• Achieved status as one of
the world‘s largest volume
handlers• Built a new business pillar
for decarbonization© 2024 JERA Co., Inc. All Rights Reserved

01| Our Origins and Our Destination

The world is facing growing challenges and uncertainties strongly related
to energy• Energy plays a significant role in solving global• AI is transforming the society• Energy demand in Asia will growchallenges of climate change, increasing

while also generating

significantly as Japan’s relative

poverty and rising geopolitical risks.

massive electricity demand.

economic size to shrink.

Climate Change(Sustainability)

1.48

+

AI

Economy in
Asia & Japan°C

China, India and Indonesia will be in the
top five of world GDP by 2050, while
Japan will drop out of the top five(3)Almost60%

the rise in global averagetemperatures from pre-industrial
times to 2023(1)of jobs in advanced economies may be
impacted by AI, and roughly half the
exposed jobs may benefit from AI integrationand enhancing productivity. For the other
half, AI applications may execute key tasks
currently performed by humans(2)Geopolitical risk
(Stability)

Poverty(Affordability)

Sheltering consumers fromvolatile fuel prices in 2022 cost

USD

900
in emergency support(5)billion

Less
than

1 8
in

peoplein low-income countries, which account for
52% of the world's population, consume asmuch annual energy per capita as those inhigh-income countries(4)(1) Copernicus Climate Change Service, UN Climate Change (2) IMF analysis Jan 2024 (3) Source: Goldman Sachs Global Paper 2022.
(4) U.S. Energy Information Administration (2023); Energy Institute - Statistical Review of World Energy (2023); Population based on various sources (2023)– with major processing by Our World in Data (5) IEA World Energy Outlook 2023

© 2024 JERA Co., Inc. All Rights Reserved7

01| Our Origins and Our Destination

8

Mission/Vision - Leading the energy transition with a unique business model• The world’s energy issue is to solve
the energy trilemma, i.e. achieving• JERA’s business model isaddressing the energy trilemma by combining

sustainability, affordability andrenewables and low greenhouse gas thermal

stability simultaneously

power in a practical and responsible way.

Mission2035 Vision

To provide cuttingedge solutions to theworld’s energy issues

Clean energy platform of
renewables and low greenhousegas thermal power• Expansion of cutting-edge
solutions from Japan to Asiaand the world.

Goal: Zero CO2Emissions 2050

The intermittency of renewables, created due to natural flutuations

Energy Trilemmain wind and sunlight, combined with a lack of electricity storage

Sustainability
CO2 Reduction

Affordability

Stability

Affordable Price

Stable Supply

technology and capacity, means low greenhouse gas thermal
power will have a critical role to play in the energy transition

Renewables

Low GHG
Thermal Power© 2024 JERA Co., Inc. All Rights Reserved

How to Reach Our Destination:

02| Methods and Numbers

Providing optimal solutions through JERA’s unique combination of its
Strategic Positioning (SP) and Operational Capabilities (OC)• Clear and coordinated investment

9• Effective combination of Strategic Positioning• Continued strengthening andfocus on three business areas:

refinement of business functions:and Operational Capabilities enables JERA to

LNG, Renewables and Hydrogen &Business Development, Optimization

offer solutions that address different energy

Ammonia (Strategic Positioning).

and O&M (Operational Capabilities).

needs by customer, region and country.

Focus Investment
Strategic Positioning (SP)Refine Business Functions
Operational Capabilities (OC)

Decide where to invest and where not to invest

Enhance the way you work on a daily basis

LNG

Business
Development
Smart investment

AI & Digital
Renewables

Hydrogen&Ammonia

Optimization
Optimize energy flow

O&M
Safe/flexible operation

Provide cutting- edge solutions that meet the geographic andeconomic characteristics of each customer, region and country© 2024 JERA Co., Inc. All Rights Reserved

How to Reach Our Destination:

02| Methods and Numbers

Key targets for 2035: investment of 5 trillion yen in 3 strategic businessareas and achieving a profit of 350 billion yen• Cumulative investment target of 5

• Enhancing the selection of strategic• Flexible and agile investment allocation

trillion yen by 2035 reflects theinvestments to respond rising interestin response to technology development

capital-intensive nature of JERA’s

rates and inflation, with leveraging 3

and changes of the businessthree business areas.

OCs to boost profitability.

environment.

We are here

Target scale to be achieved by FY 2035
FY2019Profit forthe period

In billion

FY2025200¥350 billion

1.4¥5 trillion

90
Investment
amountCumulative
investment CF

LNG
Quantity handled

In trillion

N/A

Renewables

1.5
Hydrogen& ammonia

35

In GW

Development capacity

N/A

Aiming for steady profit
growth despite uncertain
business environment

Consolidated net income

Cumulative investment CF(FY 2024 to FY 2035)
More thanIn million tons

35

FY20355

N/A

One of the world’s
largest LNG value
chain players

35 million tons
Handling volume

Global renewables
players involved ingreen fuel production

Development capacity

20 GW

(1)

Amount of hydrogen/ammonia handled

Quantity handled

About

7million tons

Note:Amount of ammonia equivalent(1) Assuming disciplined investment decisions in high-quality projects while assessing market conditions(2) This initiative will be detailed in stages based on policy and other assumptions. If assumptions are substantially changed, they will be reviewed.

Investing in threebusiness areas basedon operating capital fromexisting businesses(2)

A pioneer player in the
global hydrogen &ammonia value chain© 2024 JERA Co., Inc. All Rights Reserved10

03| Initiatives in Three Strategic Business Areas

LNG – As integrated value chain player, we continue to provide solutions to ourcustomers in Japan and Asia through stable and flexible LNG supply• One of the largest global• Leveraging on its LNG transaction scale, JERA (1)• Continue to provide solutions to

LNG players withstrengthens LNG value chain, (2) diversifies LNG

Japan and Asia and maintain its

integrated value chain.

supply and market positions, and (3) optimizes LNG

exposures in global LNG market

11

flow at a global scale
1

Strengthen LNG value chain
Gas
field

Liquefaction
Plant

LNG
Transport

6 Projects inAustralia

Freeport
US

22 LNG vessels
under long-term
charter

LNG
Procurement/Sales

Receiving
Terminal/ Pipeline

35

11 Terminals

million tons

(vs 400 million tons global trade)

Gas Thermal
Power

Customers

Capacity
Approx.
50 GW

Domestic: PPA and Power
Trading
Overseas: Bangladesh, thePhilippines, other regions

2

Diversify LNG supply &market positions
Procurement: S.E. Asia, Oceania, North America, Middle East, etc.
Sales: S.E and S.W..Asia, Europe, etc.

Destination Free
LNG

Competitive fleet
with trading &optimization flexibility

Diversified LNG
Portfolio

Ability to accept wide quality rangeof LNG and operate the generation
units in an optimum manner

3

Optimize LNG
flow at a global
scale for JERA’s
competitive edge

• Providing energy security to Japan even under market turmoil post-Ukraine conflict• Reducing coal/oil-firing mainly in Asia (with LNG & Renewables) for decarbonization© 2024 JERA Co., Inc. All Rights Reserved

03| Initiatives in Three Strategic Business Areas

Renewables – Center of Excellence in UK with Glocal system for scaling up
wind and solar

12• Towards Asia's top-tier player, having• Clear growth path with offshore/onshore

5GW capacity of FID / acquired businesswind and mega solar, plus green fuelthrough clearly defined steps that integrate

rights and over 10GW in the pipeline,

development.

local and global teams and drive collaboration.

• Become a 20 GW global player by 2035

with a team of 300 members

From Scratch

Step 1

Step 2To the Top in Asia
2019 – 2023

Building Center of Excellence (COE)2023 – 2024

Establishment of “Glocal” System2024-2025

Step 3Pursuing Collaboration
From 2025

Step 1 | Building (COE)Wind

JERA Nex (UK)30 pplParkwind (Belgium)
Offshore wind force: 140 ppl

Step 3• Drive Parkwind's PMI under diverse management team
• Establish a governance structure suitable for the Glocal structure

Collaboration• Acquisition completed in July 2023, offshore wind in Belgium andGermany• Acquisition of rights to Norway's first offshore wind tender in March
2024

Solar

GlobalPlayer

Step 2 | Integration of COE and Local teams (“Glocal” System)
Green
Hydrogen &ammonia

TaiwanOffshore wind force:
20 pplUnited States
PV and onshore
wind force: 10 ppl

Japan
Offshore wind andother force: 100
India: ReNew
Vietnam: GEC
UK: Zenobe• Participated in Taiwan's first large-scale offshore wind project(Formosa 1/2) and led the construction of Formosa 2• Completed Japan's first large-scale offshore wind project in January2024• Selected as operator of multiple projects in Japan's second offshore
wind tender• Developed large-scale solar, onshore wind and battery storage
projects in the US, India and the UK© 2024 JERA Co., Inc. All Rights Reserved

03| Initiatives in Three Strategic Business Areas

Hydrogen & Ammonia – First mover in creating low carbon value chain
with multi-purpose decarbonization initiatives• Towards hydrogen/ammonia value chain, leading• Leverage JERA’s pioneering

13• From power demand to marine fuelposition to achieve low-carbon

the world’s first large-scale ammonia power

and industrial use, providing multi-

thermal power withgeneration in Japan by 2027/2028. In US, hydrogen

purpose decarbonization solutions fromhydrogen/ammonia plus CCS etc.

introduced into gas thermal power (up to 40%) .

Japan to Asia, Europe and the US.

Produce

Transport

Blue hydrogen ammonia
from natural gas

Ammonia transport

Green hydrogen ammonia
from renewables

LOHC* transport

Store

Use

Hydrogen ammonia tank

Oil storage tank

To the world’s multiusers

Cracking* Liquid Organic Hydrogen Carrier

Liquefied naturalgas (LNG)

LNG transport

LNG tank&

CCS(CO2 capture/storage)

CO2 transport

Ammonia production and CCS

Ammonia transport

Japan

Ammonia joint development agreements
signed with• CF Industries (world’s largest ammonia
producer)• ReNew (Indian renewables giant)Ammonia production in discussion with
• ExxonMobil, ConocoPhillips
CCS joint review agreement signed with• Petronas, INPEX••

Under joint review with Nippon
Yusen, Mitsui O.S.K. Lines

LOHC Technology Development• Investment into Hydrogenous(Germany)
CO2 transport• Start of basic study•

Hekinan: Started large-scaledemonstration test of 20% ammonia
conversion, 100% goal for 2040s
Chita: Won decarbonization powersource auction with the aim of
introducing hydrogenOverseas••••

Introduction of hydrogen (up to 40%) to the
US Linden power plant
HOA of blue ammonia to Germany's Uniper
Joint examination of ammonia cracking
technology with Germany's EnBW & VNG
Joint examination of ammonia power
generation/bunkering project at Singapore's
Jurong Port with MHI-AP

Fuel supply to bunkering and industries© 2024 JERA Co., Inc. All Rights Reserved

04| What Holds the Keys to Success

The journey of energy transition: Aiming for the 2035 Vision through longterm perspective and agile portfolio adaptation• The agile adaptation is supported by (i) flexible• As the times change, effective solutions

14• Strong synergies between blue

also evolve. JERA maintains 3 businessdecision-making operations, (ii) common foundationhydrogen & ammonia and LNG,

areas from a long-term perspective, agilelyof optimization and O&M, and (iii) synergy between

plus green hydrogen & ammonia

adapting the portfolio in accordance with

3 business areas. This enables dynamic investment

with renewables

the business environment

pacing in decarbonization.
Short term horizon
2025-2030

Past 10 years..

Changing
Business
Environment••

Long term horizon
2030-2040

Significant
growth inrenewables

Possible scenario:• Renewable growth negtatively affectedby high interest rates etc.

Possible scenario:• Renewables will grow again

Introduction of
LNG in many
countries• Demand for AI-related electricity grows• LNG coal will eventually be replaced withhydrogen & ammonia and decarbonized• LNG is effective as a stable transition
fuel• New decarbonization solutioncommercialized

Flexible decision-making operations x Common foundation of optimization and O&M x
Synergy between 3 business areas

JERA’s Unique
Position

Synergy between 3 business areas

LNG• Blue hydrogen & ammonia: Full utilization of
LNG value chain i.e. gas field development (CCS),
transportation, thermal power O&M capabilities,
and trust relationship with oil majors
Renewables

Hydrogen &ammonia• Green hydrogen & ammonia: In addition to LNG
value chain, large-scale renewable energy
development and O&M capabilities, utilization oftrust relationship with renewable players© 2024 JERA Co., Inc. All Rights Reserved

04| What Holds the Keys to Success

15

Collaboration is key to achieving Mission & 2035 Vision
Reliable partners determine the success of long-term projects• The three strategic business areas of JERA all involve a large-scale projects with lifespan of 30-40
years or more, and commercializing new solutions requires taking on new risks to be managed.
• It will therefore be necessary to form joint ventures (JVs) with reliable partners for many projects.
Becoming a partner means working side by side for 30-40 years, from project planning,
construction, through to operation and disposal.
• Therefore, being chosen as a business partner by global top players both domestically andinternationally greatly influences the success of the project.
Building relationship with government officials to pave the way for decarbonization• Furthermore, openly exchanging opinions with government officials of various countries is extremely
important to foster a common understanding of the path towards decarbonization.
• We are already in discussions with the governments of Bangladesh, the Philippines, Indonesia,
Thailand, and Vietnam, in collaboration with partner companies in these countries, to develop
decarbonization roadmaps. Such efforts can reduce long-term business environmental uncertainty forcountries considering introducing LNG, or players wanting to take on new solutions.
Sharing destination and culture is essential for collaboration• To make such collaborations successful, we place importance on two things based on our longexperience: One is whether they can empathize with our Mission and Vision, and more importantly,
whether we can share our culture and values.
• At JERA, we cherish a flat culture where diverse talents gather and openly express their opinions.
• Chosen by our partners, we aim to achieve the 2035 Vision together with them and other stakeholders© 2024 JERA Co., Inc. All Rights Reserved

2Financial Strategy
and 2035 Financial
Targets
01 | FY2035 financial targets
02 | Capital allocation© 2024 JERA Co., Inc. All Rights Reserved

01| FY2035 financial targets

17

Achieve a financial structure valued by capital markets• Set financial targets (KPIs) based on• Aim to achieve consolidated net income of 350 billion yen

global peer standards

by FY2035, or sooner.

Management
Indicators

FY 2025 Target Values(Reference)

Target Levels
by FY 2035

Net Income *200 billion yen

350 billion yen

EBITDA*500 billion yen

700 billion yen

Capital Efficiency

ROIC – WACC Spread*

4.5%
WACC 3.5%

150bps or more

Growth potential

Investment CF

Profitability

ROIC

FY2022 - FY2025

FY2024 – FY2035

1.4 trillion yen (cumulative)

5 trillion yen (cumulative)

Net DER

1.0 times or less

0.5 times or less

Net Debt/EBITDA*

4.5 years or less

2 years or less

ROE*

Approx. 9.0%

Approx. 9.0%

Financial Soundness

Reference*Excludes the effect of fuel cost adjustment© 2024 JERA Co., Inc. All Rights Reserved

01| FY2035 financial targets

18

Establish financial KPIs that deliver capital efficiency and financial
soundness to maintain a strong credit rating• Strong emphasis on capital market valuationto achieve a PBR of 1x or higher• Target levels in line with or exceeding global peers

ROIC-WACC spread(1)Net DER and Net Debt/EBITDA(2)ROIC-WACC spread must exceed 150bps to
obtain a capital market valuation (PBR > 1)

Aim for financial soundness comparable tothat of non-regulated utilities in Europe

6

EuropeUtilities

5
Net Debt / EBITDA

3

Target level：
150bps

PBR

2

IOCs
1x PBR

1

Target level: 0.5
times or lessUtilities(Regulation)

4

3
Utility(Unregulated)
2

Target level:
2 years or less

IOCs
Domestic
Utilities

1

0
0

1

2

3

4

5

6

ROIC – WACC spread (%pt)

7

8

0
0.0

0.5

1.0

1.5

2.0

2.5

3.0

Net DER (times)© 2024 JERA Co., Inc. All Rights Reserved

01| FY2035 financial targets

Track record of exceeding profit targets set in the past and maintained
outlook for FY2025

Net income excluding time lag (*)(billions of yen)

Target

248
2,485

200
2,003

Actual

200

147
1,487

1,116
111
900
90

(Fiscal year)

2019

2020

2021

2022

2023

*The target for profit for the period is the business plan announced in April 2019 for fiscal 2019 to 21, the new management target announced in
October 2022 for fiscal 2022, and the new management target announced in May 2022 for fiscal 2023 to 25.

2025

2025

© 2024 JERA Co., Inc. All Rights Reserved19

02| Capital allocation

20

Aim to achieve sustainable growth through flexible investment allocation• Flexible allocation of operating cash flow into the three strategic• Enabling sustainable growth shielded frombusiness areas (SP) of the growth strategy, while considering

environmental and political challenges

market environment, technological innovation and political trends

Capital Allocation(1)Capital Investment

Cash-in

Promptly change investment
allocation

Sale of Equity, etc.:
１trillion yen

Cash-out
Shareholder Returns,
etc.: 1 trillion yen
Procurement and Repayment

OperatingCash Flow:
5.5 trillion yen

Investment
Cash Flow:
５trillion yen

Target Scale by FY 2035

Example: Built-in flexibility
to change actual investment
allocation in response to changing
market conditions

LNG

LNG Transaction Volume

1–2 trillion yen

At least

Renewables

Cumulative Capacity
Developed

1–2 trillion yen

35 million tons

20 GW(2)Hydrogen & Ammonia

Hydrogen & Ammonia Transaction

1–2 trillion yen

Volume Approx. 7 million
tons(3)(1) Accumulated estimates for fiscal years 2024 through 2035
(2) Assumes disciplined investment decisions for high-quality projects while assessing market conditions(3) Details of this initiative will be elaborated in stages based on policy and other assumptions. If assumptions are substantially changed, they will be reviewed.

© 2024 JERA Co., Inc. All Rights Reserved

3
Towards the realizationof JERA CO2 Zero
Emissions 2050
01 | Steady progress towards zero emissions in Japan
02 | Working towards zero emissions in all countries
03 | Reducing NOx/SOx alongside CO2
04 | Preparing for increases in electricity demand© 2024 JERA Co., Inc. All Rights Reserved

01| Steady progress towards zero emissions in JapanJERA is one of the first domestic operators to announce its commitment
to the environment
JERA Zero CO2 Emissions 2050（announced on October 13, 2020）

2030

2035

2050

CO2 Emissions Intensity

CO2 Emissions

CO2 Emissions-20%

than government
outlook** Compared to the long-term energy supply-demand
outlook for FY 2030 as set by the government.

JERA is actively working to reduce CO2
emissions. In its domestic operations, JERA
will aim to achieve the following by FY2030:• Close all inefficient (supercritical or less)coal power plants and conduct
demonstration tests of substitution of ammonia
at high-efficiency(ultra-supercritical) coal power plants.
• Promote the development of renewable energy
centered on offshore wind power projects andwork to further improve the efficiency of LNG
thermal power generation.

-60%

or moreJERA will aim to reduce CO2 emissions
from its domestic operations by at least
60% (compared FY 2013) by FY 2035
through the following:• JERA will strive to develop and adopt
renewables in Japan given the
expanded adoption of renewables basedon the national government’s 2050 carbon
neutral policy.
• JERA will work to reduce carbon
emission intensity from thermal power
generation by promoting hydrogen andammonia substitution.

JERA Zero CO2 Emissions 2050 Roadmap and JERA Environmental Targets are premised on steady advances in decarbonization technology,
economic rationality, consistency with policy, and the business environment under which they will be realized.

0
JERA is committed to achieve zeroCO2 emissions from its domestic
and overseas operations by 2050.

© 2024 JERA Co., Inc. All Rights Reserved22

01| Steady progress towards zero emissions in Japan

23

Leading the decarbonization of Japan's power sector with renewables andzero-emission thermal power• Consider CCS and CCUS

• Promote zero-emission thermal power generation by switching• Promote the development ofto hydrogen-based fuels while promoting the removal of coal-technology developments as

renewable energy, especiallyfired power generation by shutting down and decommissioninga zero-emission enabler

offshore wind energyof power plants and converting to ammonia

2030 -

Today -

2030
CO2 Emissions
Intensity-20%
Inefficient CoalFired Thermal

Coal

High-Efficiency
Coal-Fired Thermal
Needed for Stable Supply(Ammonia-Fired Thermal)

Coal

Coal-Fired thermal
in-house power
generation customers

Coal

LNG

LNG

Demonstration
Testing of Hydrogen
Substitution

LNG-Fired Thermal(Hydrogen-Fired
Thermal(1))
Renewable Energy(Offshore Wind
Power)

2040 -

Promote further development
of offshore wind energy

JERA
Zero CO2
Emissions-60%

Contribute to achieving a hydrogensociety by expanding commercial
distribution to other industries

Total
Shutdown

Min. 20% Substitution

2050

2035
CO2 Emissionsof at leastMin. 50% Substitution

100% Ammonia
Substitution(2)Promote the introductionof green hydrogenand ammonia

Full-Scale Operation

HydrogenSubstitution(2)Practical application of
floating technology

Off Oga City, Katagami
City, and Akita City

These initiatives will gradually be specified in more detail as government prerequisites become clearer, and reviewed if there aremajor changes in such conditions.
(1) Consider use of CO2-free LNG(2) Using green or blue hydrogen/ammonia© 2024 JERA Co., Inc. All Rights Reserved

01| Steady progress towards zero emissions in Japan

Steady progress towards zero-emissions thermal power using ammoniaof the Hekinan Thermal Power Plant• On April 1, the world's first large-scale• Continue operation of the Hekinan

24• NOx emissions were confirmed to be equal or

Thermal Power Plant to ensure stablecommercial coal-fired power plant

lower. SOx emissions were reduced by approx.

power supply; complete modification

was fired for the first time, and a 20%

20% compared to those before ammonia

work on a 20% ammonia conversion

ammonia conversion demonstration

conversion in the coal mono-combustion process.

burner during the three-month

test (1) began. The 20% conversion

No N2O was found to be above the detection

periodic turnaround of Unit 4.

was achieved on April 10.

limit(2).

Demonstration Testing Facility Construction and Testing Schedule
FY 2022First Half

FY 2023

Second HalfFirst Half

FY 2024

Second Half

April

Ammonia Burner
Installation

1

Ammonia
BurnerModifications(Unit 4 Routine Inspection)

May

June

Achieve burnermodification
quickly during
routine inspection

2

Ammonia Tank,
Piping, andRelated Equipment
Construction

GroundImprovement

Civil and MechanicalConstruction

Reach 20%Substitution▽4/1 ▽4/10
3

Trial
Operation

Ammonia
Demonstration
TestingFirst
FiringReach 1GW at 20%
Substitution
Demonstration Testing▽ First receipt of fuelammonia (cooldown ship)(Ammonia Reception)

Positive evaluation
results such as
lower NOx and SOx▽ First main carrier docks(1) A NEDO “Development of Technologies for Carbon Recycling and Next-Generation Thermal Power Generation / Research, Development,
and Demonstration of Technologies for Ammonia Co-Firing Thermal Power Generation” project (Project entities: JERA/IHI)(2) Final evaluation will be conducted separately▽Performance Testing▽Second main carrier
expected to dock▽Third main carrier
expected to dock© 2024 JERA Co., Inc. All Rights Reserved

02| Working towards zero emissions in all countries

25

In Asia, expanding the use of LNG is key to promoting a low-carbon society• First, develop LNG-fired power instead of new coal-fired power,
thereby limiting the increase in CO2 emissions associated withgrowth in electricity demand.

• While introducing distributed renewables in parallel andpromote ammonia conversion of coal for the future.

Initiatives in Asia (Illustrative)
Today

Existing
coal-fired
thermalCoal

Develop LNG-fired
power instead of
new coal-fired
power

Coal

LNG

LNG

Demonstration
testing ofhydrogensubstitution

LNG-fired thermal(hydrogen-fired
Thermal(1))

2040

2050 – 2060

Drive conversion toammonia to further
reduce CO2

Total shutdown

These initiatives will gradually be specified in more detail as government prerequisites become clearer, and reviewed if there
are major changes in such conditions.
(1) Consider use of CO2-free LNG(2) Using green or blue hydrogen/ammonia

Full-scale
operation

Hydrogensubstitution(2)© 2024 JERA Co., Inc. All Rights Reserved

02| Working towards zero emissions in all countries

26

JERA optimally combines a variety of options to achieve decarbonization
based on country and region-specific circumstances• Multiple options are needed to ensure a stablesupply of clean energy at an affordable price• Zero-emission thermal
power is one of the options

in all countries around the world• The optimal combination of options will vary fromcountry to country/region, depending on geography,
country size, level of economic development, etc.

Site area required for equipment with an output of 1 GW.

Thermal andnuclear power

Solar

Wind

Battery

1 day
1 week1 month

0.2~0.6km

2

9km

2

57km

2

2.7~81km

2*The battery capacity required for storage
batteries varies depending on the period of
output maintenance, and the site area varies.
1 Output maintenance periods of up to several
hours are common.

Source: JERA based on the Agency for Natural Resources and Energy’s “Japan’s Energy Problems”
and various press releases on the grid storage battery project.

© 2024 JERA Co., Inc. All Rights Reserved

02| Working towards zero emissions in all countries

27

Need a combination of power sources and storage batteries that can
respond to short- and long-term fluctuations in supply and demand• Countries and regions with large seasonal changes in electricity demand require a combination of power sources that can respond tothese fluctuations

Reference: Electricity supply to meet demand fluctuations in Japan
Daily supply and demand image
Annual supply and demand image(example of May 4, 2023)
Thermal power generation and storage batteries are needed to deliver astable constant energy supply during times of minimum solar power output.

9000

10.000kW(FY 2023 example)
Demand fluctuations between seasons are large (tens of GW× several months).
Large scale battery storage technology is in its infancy meaning thermal power
generation is needed to allow for adjustable power output.

12000

Control of excess solar output=>water pumping and storage
batteries must be utilized

8000

10,000
kW

30GW
10000

7000

Heating

DemandHeating

8000

6000

Solar power

Control
Control

5000
6000

4000

Thermal powerr

Thermal power
4000

3000

Pumped hydro power

Solar power

2000

Hydroelectric power
1000

0

2000

Nuclear power

Hydroelectric power
Nuclear power

Biomass, geothermal, wind power
Morning0

AfternoonNight

Biomass, geothermal, and wind power
SpringSummer

Source: Compiled by JERA on the basis of supply and demand data of each power transmission and distribution company in Japan.
Note:A moving average is used for visibility.

AutumnWinter© 2024 JERA Co., Inc. All Rights Reserved

02| Working towards zero emissions in all countries

28

Reference: Differences in value generated by different power sources

kWh value

kW value

Environmental
value

Short-term
flexibility

Long-term
flexibility

Generated
electricity

Capability togenerate electricity

CO2 emissions

Ability to respond tofluctuations indemand due today/night and daily
weather changes

Ability to respond tofluctuations indemand due todifferent seasons andextreme weather
conditions

Coal
LNG
Nuclear power
Solar power
Wind power
Battery
Zero emission
thermal power© 2024 JERA Co., Inc. All Rights Reserved

03| Reducing NOx/SOx alongside CO2

29

NOx/SOx reduction is important not only for CO2 emissions but also forecosystem conservation• JERA takes a broad view in supply• Jera has succeeded in reducing• JERA aims to deliver further reductions through adoptionof sustainable energy, not purely

NOx and SOx emissions to theof new technologies such as low-NOx burners and highlimited to GHG only

lowest level globally

performance denitrogenation / desulfurization equipment※

Positive evaluation results of 20% lower SOx

levels and unchanged NOx levels.（P.24）

NOx Emissions

SOx Emissions(g/kWh)(g/kWh)

1

1.6

0.9

1.4

0.8
1.2
0.7
1

0.6
0.5

0.8

0.4

0.6

0.3
0.4
0.2
0.2

0.1
0

0
Canada Germany

France

UK

US

Japan

JERA

Source: NOx emissions = OECD Statistics; Generated energy = IEA, World Energy Balances

Canada Germany

France

UK

US

Japan

JERA

© 2024 JERA Co., Inc. All Rights Reserved

04| Preparing for increases in electricity demand

30

Consider revising power sources development plans to prepare forpotential increases in electricity demand• JERA has maintained a stable• Going forward, JERA will drive the• It is also necessary to prepare for the expectedsupply base by replacing aging

decarbonization of the energy sector,

increase in DX related power demand such as

thermal power plants

with a dual focus on renewables anddata centers, AI, etc., and the return of thezero-emission thermal power generation

semiconductor industry to the domestic market.

JERA’s power sources development plans in Japan
Today

Thermal
power

2025

780MW

Goi Unit 1 August 2024

780MW

Goi Unit 2

November 2024

780MW

Goi Unit 3

March 2025

2030

Approx. 650MW

Chita Unit 7

FY2029Approx. 650MW

Chita Unit 8

FY2029Off Oga City, Katagami City, and Akita City

June 2028

OffshoreWind Power

315MW

2035

Need to prepare for the
expected increase in power
demand© 2024 JERA Co., Inc. All Rights Reserved

Appendix© 2024 JERA Co., Inc. All Rights Reserved

32

Amid global efforts to decarbonize, factors such as the invasionof Ukraine have driven resource prices sharply higher andcreated a crisis for stable energy supply
Trends in Gas Prices (NBP)$/MMBTU
50

40

30

20

10

0

2018/1

2019/1

1
Weak winds in

2020/12

2021/12022/12023/1

3
The invasion ofSome Asian countries postpone LNG purchases, resulting

Europe cause a

Ukraine spurs ain rolling blackouts and even decisions to rebuild coalscramble for LNG tosharp rise inplants. In Europe, some resumption of coal-fired thermal

replace wind power.

resource prices.

power to ensure a stable power supply.

© 2024 JERA Co., Inc. All Rights Reserved

33

A diverse power mix is essential on the road to carbon neutrality
with the optimal combination varying greatly by country and region"Achieve the most economical decarbonization while maintaining stable supply”
Analysis of the optimal power supply configuration

Results of Analysis of Optimum Power Supply
Configurations in Each Country
Not enough for one power type

Main Factors for Determining an Optimal Roadmap
The optimal power supply configurations differ greatly
depending on the individuality of countries and regions
GDP (2022 = 100)

kWhCountry B

Country A

Economic
Situation

Other
Hydrogen/ammonia

100

152

100

Europe

LNG

274

Southeast Asia
2022

2050
wind speed
10m+/sRenewable energy
2025

Transition

Decarbonizationachievement

2025

Transition

Decarbonizationachievement

Country D

Country C

Renewable
EnergyInventoryWind
Conditions
Map

0m/s

Europe2025

Transition

Decarbonizationachievement

2025

Transition

Decarbonizationachievement

Source: JERA analysis designed to minimize integration costs, including the costs not only ofelectricity generation but also transmission and distribution facilities and storage batteries.

Power
Lines
Gas
Pipelines

Southeast Asia

• Europe: international link lines and gas
pipelines are well-developed.
• Asia: many countries are island nations
where international energy connections
are less established.

Source: Global Wind Atlas IEA, World Energy Outlook 2023, Stated Policy Scenario© 2024 JERA Co., Inc. All Rights Reserved

34

Major progress with many initiatives providing three-pillar solutions• JERA already started to take on the• Clear focus on working withchallenge of providing unique solutions

countries in Asia at present

Main Initiatives for Providing Three-Pillar Solutions
2021

To advance decarbonization in
the Philippines, invested in
major electric company Aboitz
Power and began studying theformulation of a decarbonization
roadmap.

2022

2023

Began working incooperation with Summit
Power, Bangladesh’s
largest IPP operator, toformulate adecarbonization roadmap.

Began studying and providing support
aimed at formulating a decarbonization
roadmap for the government of the
Republic of Indonesia.

2024 –

Initiate support for theIndonesian government todevelop a master plan/action
plan for decarbonizing
thermal power generation inline with the roadmap

Began working with Vietnam
Electricity, Vietnam’s largest
power producer, to formulate adecarbonization roadmap.

We aim to begin the concrete work
necessary to achieve the formulated
roadmaps and to expand such initiatives
to other countries.
© 2024 JERA Co., Inc. All Rights Reserved

35

Business development function with focus on global/local partnerships• Integration of COE into Global• Local, community-based(COE:Center of Excellence)• Global and local align as partners todevelopment

form best projects

JERA Nex
GlobalRenewable
Energy Base300
PeopleJERA HQJERA Nex,a renewableenergyplatform,
establishedin 2024JERA Middle
East & Africa
IPP bases in the
Middle East

20
People300
PeopleJERA Asia
IPP basesin Asia40
PeopleJERA Americas
North America-based
IPP and LNG upstream
business sites

170
PeopleJERA Australia
Upstream Business
Base in Australia

40
PeopleJERA Nexconsolidates COEs in
the UK and builds a
global collaboration
system with local
bases in Europe,
North America,
Taiwan, Japan, etc.

Note: The number of personnel at JERA Nex is approximate as of April 2024 and includes, in part, personnel outside the UK.
Note: Other personnel numbers are approximate as of December 2023.

© 2024 JERA Co., Inc. All Rights Reserved

36

O & M functions: Digital Power Plant• Successful completion of PMI allowing integration of best practices
from TEPCO, Chubu Electric, or the best global standard• Digital excellence inaccumulated knowledge

Engineering knowledge built over many
years with one of the world's largest power
generation facilities

State-of-the-art digital technology
data science

JERA-DPP (R) (Digital Power Plant)
Conduct predictive monitoring of and provide on-site
support for power station facilities around the world

Combining applications of specialized O&M knowhow

DPP package

G-DAC＝Global-Data Analyzing Center
Results ofCentralAnalysis

Key app examples
Abnormal predictive analysis App

Market Forecast Work Arrangements App

On-SiteData

Use AI to gather and analyze big data from aroundthe world in real time, uncovering signs of impending
malfunction and places for operational improvement

More on DPP: Digital Power Plant for AI in the field =DPP | DISCOVER JERA | JERA

We have created over 20 apps that long years ofengineering knowledge, elevating on-site decisionmaking and operational improvements.

© 2024 JERA Co., Inc. All Rights Reserved

37

Optimization function – Global asset-backed trading• JERAGM*1 has become one of the world's largest and• Further strengthening our global electricity optimization

most capable fuel trading companies, optimizing

capabilities by applying knowledge from the success of ourroughly 10% of the world’s LNG transaction volume

domestic electricity trading company Jera PT*2

Global business, worldwide presence
JERA Global Markets is the core of JERA’s fuelprocurement function, managing all coal and LNG
procurement for JERA while maximising value
through optimisation and trading

LONDON

TOKYO

•
•
•
•

• Headcount: 10• LNG supply interface with JERA
• Freight interface for JERA
deliveries

Headcount: ~90
European Receipt of LNG Cargo
Atlantic-based coal and LNG trading
Global financial coal & LNG trading

Optimizing~

10％of the world’s
LNG transaction
volumeBALTIMORE

SINGAPORE• Headcount: 5• Physical coal sourcing
mainly for export purposes• Headcount: 170+
• Management
functions• Optimisation of
JERA coal & LNG
imports• Pacific-based coal
& LNG trading• Origination ofregional coal &LNG transactions• Risk management
operations & ITfunctions

AMSTERDAM*• Headcount:~100• Two coal terminals with a combined
storage capacity of ~2.6mt^In 2023, JERA Global Markets completed the sale of the Rietlanden Terminals to the Rhenus Group. The divestment is
consistent to the sustainability strategy of the Port of Amsterdam and will take place over two tranches across 2023 and 2027.

© 2024 JERA Co., Inc. All Rights Reserved

38

Active financial strategy balance sheet management• Hold capital larger than the integrated risk
amount and maintain a A credit rating

Image of FY2035

Balance Sheet Management
Toward FY 2035

Credit ratingsA

ratingLiabilities

Net DER

Total assets
Approximately
10 trillion yen

Risk buffer

Net assets
Amount ofintegrated risk

0.5

Times or less

Net Debt / EBITDA

2

years or less

* JERA defines its risks into three categories: market risk, credit risk, and operational risk. The amount of integrated risk is quantifiles from market risk
and credit risk. The difference between the amount of integrated risk and risk capital is defined as a "risk buffer." JERA has a policy of maintaining acertain level of risk buffer in consideration of the existence of operational risk.

© 2024 JERA Co., Inc. All Rights Reserved

39

Towards reducing GHG emissions across the entire lifecycle• Reduction of GHG emissions not only by switching 100% from coal toammonia but also across entire lifecycle including mining and production

JERA Efforts

Future Lifecycle GHG Reduction Effect
Lifecycle GHG Reduction Effect of Converting Coal
to 100% Ammonia (IEA Estimate)

Convert coal-fired thermal to 100%
ammonia-fired thermal

For the ammonia used, convert to100% blue or green ammonia, whichemits less GHG during production.
Develop our own renewables andexpand production of green ammonia.
In addition, build a value chain thatfurther reduces GHG emissions acrossthe lifecycle for blue ammonia.

100% Coal

80％

90-95％

Reduction

Reduction

Blue

Green

100% Ammonia
Source: IEA, The Role of Low-Carbon Fuels in the Clean Energy Transitions of the Power Sector© 2024 JERA Co., Inc. All Rights Reserved

40Start of renewables development activities
including offshore wind in Japan• Promoting the offshore wind power project in• JERA jointly operates Ishikawa Bay New Port with

Oga City, Katagami City, and Akita City inGreen Power Investment, a leading offshore wind

Akita Prefecuture after public selection

power company in Japan

Oga, Katagami, and Akita

Oga
city

Katagami
city

Off Oga City,
Katagami City
and Akita city

Akita
city

Ishikari Bay New Port, Hokkaido

Akita

Japan

Output315MW

Output112 MW

Start ofoperation

Scheduled for June 2028

Start ofoperation

January 1, 2024

© 2024 JERA Co., Inc. All Rights Reserved