To address the need to decarbonize electric power, we have leveraged our engineer capabilities, which we honed through our long track record of deliveries, to secure geothermal power projects, hydro power replacement projects, and large-scale projects under the long-term decarbonization power source auctions. The order backlog in the power generation business at the start of fiscal 2026 has grown significantly to 1.4 times the fiscal 2024 level.

Going forward, in addition to steadily executing these projects we have already secured, we will expand our decarbonization and renewable energy businesses by strengthening our response to growing global demand for geothermal power generation facilities and advancing development and supply efforts, including demonstrations of next-generation hydrogen fuel cells.

In the after-sales business, with the aim of increasing orders, we will strengthen proposals for scrap and build (S&B) projects for hydro power generation facilities, including pumped-storage hydropower, as well as expanded diagnostic technologies and repair services.

As deployment of renewable energy expands, the market for grid storage battery systems, which enable effective use of generated electricity, continues to grow rapidly.

Building on three strengths—high-speed control technologies for storage batteries and PCSs, collaboration with partner companies, and one-stop solutions covering everything from equipment through construction—we will further enhance competitiveness through new products, including systems that use AI to optimize electricity transactions, and aggressively capture growth opportunities in the market.

The order backlog for substation systems at the start of fiscal 2026 has grown significantly to 1.7 times the fiscal 2024 level. We are successfully capturing robust investment demand across a wide range of areas, including planned increases in investment by power companies following the introduction of the revenue cap system, electrification of factories in the industrial field, and plant and equipment investment associated with the reshoring of the semiconductor industry to Japan.

Going forward, we will increase production capacity to meet this strong demand while bringing GX-related products such as dry air switchgear to market in a timely manner, thereby driving business expansion.

Plant and equipment investment in IDCs is growing rapidly worldwide, driven by the spread of generative AI and cloud services.

Leveraging not only our one-stop capabilities spanning substation equipment through to power supply equipment, but also our ability to make high-value-added proposals such as skid systems that shorten construction periods, the power supply and facility systems business has significantly expanded sales, mainly for IDCs.

Going forward, to further expand business at a pace exceeding market growth, we will strengthen competitiveness through new products, including proposals for cooling solutions (such as ejector cooling units that help improve IDC energy efficiency) and the development of new UPS products (one of our core offerings).

At the same time, we will reinforce our manufacturing systems in Japan and overseas to address rapidly growing demand, particularly demand overseas. By expanding production facilities for UPSs and other products in Japan and constructing and launching a new factory for IDC controlgear in Malaysia, we will increase our global product supply capacity.