(E34837) Stock Price

JERA is one of the world's largest power generation companies, operating an integrated energy business spanning fuel procurement, power generation, and electricity and gas sales. The company was established by consolidating the thermal power generation operations of Tokyo Electric Power and Chubu Electric Power, and develops and operates power plants and LNG receiving terminals both domestically and internationally. Its core services include power supply through thermal power generation, LNG (liquefied natural gas) procurement and sales, and renewable energy generation.

The company's primary customers are electric utilities and major industrial power consumers, with revenue stability based on long-term contracts. Its revenue structure is built on three pillars: electricity sales from power generation operations, profit margins from fuel trading, and dividend income from overseas investments. The company also utilizes short-term and market-based transactions to provide flexible energy solutions tailored to customer needs.

The company's business is divided into three segments: "Fuel Business," "Overseas and Renewable Energy Generation," and "Domestic Thermal Power and Gas." The Fuel Business handles upstream investments through LNG transportation and trading. The Overseas and Renewable Energy Generation segment develops power plants worldwide and invests in renewable energy. The Domestic Thermal Power and Gas segment supplies electricity and gas primarily in the Kanto and Chubu regions, backed by 70 years of operational experience, and also provides operation and maintenance services to customers both domestically and internationally.

JERA is pursuing a comprehensive growth strategy under its long-term vision through 2035, aiming to simultaneously achieve three objectives: stable energy supply, economic efficiency, and sustainability. The company has set management targets for fiscal 2025 of approximately 7.5 to 8 trillion yen in revenue and around 500 billion yen in operating profit. Looking further ahead to fiscal 2035, JERA targets revenue of 9 to 10 trillion yen and operating profit of 6 to 8 billion yen. This ambitious financial roadmap is supported by a business strategy built on three pillars: liquefied natural gas (LNG), renewable energy, and hydrogen and ammonia.

For capital allocation, JERA plans total investments of 1.4 trillion yen from fiscal 2022 through fiscal 2025, with 1.2 trillion yen directed toward growth areas. The company will invest 650 billion yen in decarbonization-related businesses and allocate 600 billion yen to stable supply initiatives, balancing energy transition with reliable power supply. JERA's competitive advantage lies in leveraging its world-class fuel procurement capabilities and generation capacity representing half of Japan's thermal power output, maximizing the strength of its integrated value chain from fuel sourcing through power generation.

In new market development, JERA is accelerating entry into the global renewable energy market through a "glocal" approach centered on its European subsidiary, JERA Nex Limited. In offshore wind development, the company is building a competitive development platform through a joint venture with bp, positioning it as a medium to long-term growth engine. Additionally, JERA has integrated its fuel trading operations through JERA Global Markets (JERAGM), establishing a framework to comprehensively manage risks across global fuel markets and the domestic power market, strengthening its ability to respond to market volatility.

On technology innovation, JERA is pursuing three approaches under its "JERA Zero Emission 2050" initiative to achieve net-zero CO2 by 2050: complementary deployment of renewable energy and zero-emission thermal power, development of country and region-specific decarbonization roadmaps, and adoption of a smart transition approach emphasizing gradual decarbonization. The company is also advancing hydrogen and ammonia co-firing technology development and business optimization through digitalization, combining digital technology with three specialized teams focused on business development, optimization, and operations and maintenance to further strengthen competitive advantage.