485A.T

• Overall Financial Performance: • Full-year FY2025 revenue reached 19.3 billion yen, a 213.4% year-over-year increase (tripling from 6.1 billion yen in the prior year). • EBITDA came in at negative 0.1 billion yen, nearly achieving profitability, with a 4.3 billion yen year-over-year improvement; operating income improved by 4.2 billion yen year-over-year, and the net loss attributable to parent company shareholders narrowed to 1.6 billion yen. • 12.0 billion yen of revenue was recorded in Q4 alone, a 168.8% year-over-year increase, making it the highest quarterly revenue on record; Q4 achieved operating profit of 1.5 billion yen and net profit of 1.4 billion yen, proving the company's capability to deliver large-scale production and installation. • Total selling, general and administrative (SG&A) expenses decreased 8.9% year-over-year: Sales and Marketing (S&M) expenses increased 40.6% year-over-year to support sales growth, R&D expenses decreased 26.5% (reflecting a matured product development cycle rather than reduced R&D activity), and General & Administrative (G&A) expenses decreased 15.8% year-over-year despite post-IPO cost increases. • Operating cash flow turned positive for the first time at 1.3 billion yen, driven by advance customer deposits tied to growing order backlog; ending cash balance improved to 7.4 billion yen after 6.3 billion yen in proceeds from IPO public offering. • Formal contracted order backlog reached 39.0 billion yen as of one month after the FY2025 end, up from 37.0 billion yen at year-end; combined formal and probable order backlog reached 80.1 billion yen, with 36.0 billion yen allocated to FY2026 and 39.8 billion yen allocated to FY2027.

• BESS Business Highlights: • 16 customer projects won government subsidies totaling 33.4 billion yen, with 1.2 billion yen to be recognized in FY2026 and 32.2 billion yen in FY2027; PowerX holds the No.1 market share in terms of both awarded project count and subsidy amount for these bids. • Average order size is increasing, from 1-digit billion yen per project to 2.0 billion to 8.0 billion yen per project; larger orders reduce seasonal sales volatility, improve sales efficiency, and allow for more planned production. • A nationwide maintenance partnership is being built with NTT Anode Energy to support long-term customer confidence in installed storage battery facilities. • Installation productivity improved 7.3x year-over-year per field engineer, with 9 engineers delivering 93 Mega Power units in November-December 2025, demonstrating scalable installation capability.

• Power Business Highlights: • Operates three growing service lines: power sales, resource aggregation (recurring revenue from operating customer-owned storage facilities), and full turnkey storage plant construction. • Currently manages 19 MW of power sales across 71 sites and 14 MW of storage capacity across 7 operational sites; has a successfully running pilot project with Japan Post, which is being expanded to additional locations, and operates primary frequency regulation for high-voltage storage facilities to gather operational insights for product improvement.

• New Business Launch: Mass-produced Data Center Business: • Launched the new Mega Power DC containerized data center product, built on PowerX's existing water-cooled container technology by replacing battery modules with AI and data center computing hardware; no large upfront capital expenditure is required, as existing factory capacity can be used for production. • The product supports scalable deployment: 1 unit for edge data centers, 10 units for small-scale, 25 units for middle-scale, and 125 units connected for hyperscale data centers; an optional on-board battery provides built-in business continuity planning (BCP) capability, and the design is well-suited for existing policies co-locating data centers with thermal power plants. • The market opportunity is large: total addressable market for the product in Japan is estimated at 5.3 trillion to 10.0 trillion yen, driven by growing demand for data center power that is projected to reach 5.1 GW to 8 GW by 2040. • The business is launched in three phases: Phase 0 (current) is a build-to-order contract model that requires no new R&D; Phase 1 will shift to in-house product sales, and Phase 2 plans for further vertical integration; PowerX has started a collaboration trial with IIJ (Internet Initiative Japan) and is seeking additional partners. • The new business aligns with PowerX's core mission of improving Japan's energy self-sufficiency: it addresses the mismatch of surplus power in low-demand regions (where generation facilities are located) and tight power capacity in high-demand demand centers by placing data centers in surplus power regions, and transmitting processed data via low-cost fiber optic cables rather than transmitting bulk power over expensive new transmission lines.

• Full-year FY2026 guidance targets total revenue of 38.0 billion yen, representing a 98.8% year-over-year increase (doubling FY2025 revenue). It projects operating income of 2.0 billion to 2.5 billion yen, EBITDA of 2.5 billion to 3.0 billion yen, and net income attributable to parent company shareholders of 1.0 billion to 1.5 billion yen, representing the company's first full-year profitability across all profit levels. • Segment-level guidance: BESS business expects significant revenue and profit growth driven by strong demand for grid-scale and solar-coupled storage batteries; Power business expects continued revenue and profit growth from expanded services; EVCS business expects continued revenue decline, with a cost-control strategy to maintain limited losses. • Sales are still expected to be concentrated in the second half of FY2026 due to customer budget execution timelines, but growing average order size will lead to more gradual sales recognition across the second half rather than extreme concentration in Q4. • Shareholder return policy: PowerX remains in a high-growth phase, so it will prioritize reinvesting cash into R&D, capacity expansion, and M&A to accelerate growth rather than paying dividends for the foreseeable future. • Production capacity guidance: Current factory utilization is nearly 100%, but existing equipment capacity allows for a 1.5x to 2.0x short-term production increase via staffing adjustments if orders exceed expectations; IPO proceeds will be used to add capacity for 2027, and the company has clear visibility to meet growing order demand through 2028.

1. BESS Business: Revenue of 17.0 billion yen, accounting for 88.6% of total company revenue. It grew 212.8% year-over-year, achieved operating profit of 3.8 billion yen, and is the core growth driver of the company. 2. Power Business: Revenue exceeded 1.0 billion yen, grew 170.6% year-over-year, and achieved positive operating profit (black ink). 3. EVCS Business: Revenue decreased year-over-year due to the slowdown of EV penetration in Japan, but the amount of net loss has been reduced through cost of goods sold improvement.

• Raw material price volatility: Combined lithium producer shutdowns, strong demand for EV and energy storage system (ESS) products, and front-loaded demand from the phased elimination of China's VAT export rebates have led to recent lithium price spikes, which could cause supplier module price increases for PowerX; while prices are expected to stabilize long-term and PowerX can pass through permanent price increases to customers and launch cost-competitive new products, short-term profit margins could be negatively impacted until adjustments are completed.
  • Exchange rate volatility: The FY2026 guidance assumes an exchange rate of 155 JPY/USD, and while partial hedging is in place, extreme recent exchange rate volatility makes short-term profit impact difficult to forecast accurately.
  • New business investment uncertainty: While the new mass-produced data center business is not expected to generate any revenue in FY2026, with only limited R&D costs budgeted, stronger-than-expected demand could lead to additional discretionary investment that impacts near-term profitability.
  • EVCS business headwinds: The slowdown in EV adoption in Japan is expected to continue pressuring EVCS business revenue for the foreseeable future.

No question and answer section was included in the provided earnings call transcript.