February 2016 Regular Press Conference : President Katsuno's Message

• Before moving into today’s main issues, I would like to refer to the power outage that occurred late January in Nagano Prefecture.
• The power outage, which was extensively experienced within Nagano Prefecture on January 29, lasted for four days in some areas and caused inconvenience to many customers. 
• The outage was a result of raindrops on tree branches freezing, and its weight making the tree fall down and cutting down the transmission line. The tree that fell down blocked the road and prevented vehicles from passing, and we thus needed time for restoration.
• We apologize to relevant parties for the concern we generated, and, to customers in areas that endured a long blackout, for the inconvenience we caused during the freezing midwinter weather.

• I would next like to talk about the development of Chubu Electric Power Group's Management Vision.
• The Management Vision reiterates the thinking and aims of our Group amid significant changes in the business environment, particularly the electricity and gas system reforms, as well as other.
• Our Corporate Philosophy of providing the energy essential for lifestyles and contributing to the development of society will remain unchanged, no matter how much the business environment would transforms.
• The Management Vision is based on the idea that we need to realize both our unwavering mission and succeed in creating new value in order to respond to the trust and high expectations of our customers as well as society, and to continue to be chosen by them.
• Realizing our unwavering mission means to always provide environmentally friendly high quality energy in a safe, reasonable and stable form.
• Based on the realization of our unwavering mission, Chubu Electric Power Group will constantly work to create new value in view of changes of the times.

(What Chubu Electric Power Group aims for)

• Under these fundamental concepts, the Management Vision states that Chubu Electric Power Group aims to become total energy service corporate group that is one step ahead.
• Four specific policies exist to achieve our aim:
  1. Providing environmentally friendly high quality energy in a safe, reasonable and stable form.
  2. Pursuing optimal energy use together with customers and creating new and attractive products and services ahead of our competitors.
  3. Expanding our business domain both in Japan and abroad, and generating new value by utilizing the managerial resources and know-how that we have accumulated.
  4. Brushing up our top-class technological skills, service capabilities and management skills that exceed our competitors in Japan and abroad.

(Development of a new business model)

• Chubu Electric Power Group will develop a new business model without delay to achieve our am.
• More specifically, we will include:
  • Expanding business domains through utilizing internal and external managerial resources .
  • Promoting autonomous initiatives in power generation, power transmission and distribution, and retail fields to provide services that exceed the expectations of customers ahead of its competitors.
• The establishment of JERA and the launch of the internal company system are part of the initiative to organize this new business model.

(Further strengthening of our business foundation)

• To realize our unwavering mission as an electric utility and to create new value in view of changes of the times, we need to strengthen our business foundation through strict enforcement of environmental management and, use and development of advanced technology.
• First, in terms of encouraging strict enforcement of environmental management, we will seek continuous use of nuclear power plants to achieve the power source mix that was presented in the government’s Long-term Energy Supply-Demand Outlook, and also the greenhouse gas reduction targets.
• Efforts will also be made towards the realization of a low carbon society in power generation, power transmission and distribution, and retail fields. Undertakings will include the promotion of renewable energy, the launch of highly-efficient thermal power plants, reductions on power transmission and distribution loss rates, and energy-saving consultation services. 
• Encouraging strict enforcement of environmental management is a social responsibility that we bear as a company.
• By use and development of advanced technology that goes in line with the rapidly progressing technical innovation, Chubu Electric Power Group will also strive to reinforce business foundations.
• More specifically, Chubu Electric Power Group will bring together and harness ICT or other new technologies to strengthen and scale our business foundation up, while developing new businesses and services such as customer-oriented services or equipment.

(What the Company aims for)

• The Management Vision presents a group-wide aim, and at the same time sets forth the ideal and direction for companies that are launching in April.
• While having three companies share the mission of ensuring stable energy supplies, they promote　autonomous initiatives toward realizing our vision for the company in each field.
• The Power Generation Company and JERA, which are responsible for the electricity generation field, will pursue one of Japan’s largest business scales and achieve globally top-class technological skills in order to survive in the global market.
• The Power Network Company, dealing with the power transmission and distribution field, will respond to the trust and high expectations of our customers and support the development of the region by providing top-class network services.
• he Sales Company, which manages the retail field, will continue to be chosen by customers by providing total energy services centered on gas and electric power

(Quantitative Vision for the Company in 2030)

• I next would like to talk about what Chubu Electric Power Group aims to achieve in 2030.
• Through business activities by JERA and efforts to “create new value” such as electricity sale outside the Chubu region, we will aim to gain new profits of 160 billion yen or more (as of 2030), in addition to profits from existing electricity businesses.
• We also have arranged a new target for electric power sales, i.e. 20 billion kWh from non-Chubu region with an emphasis on Tokyo and its neighboring prefectures. With regard to gas sales, we are aiming for 3 million tons within and outside the Chubu region.
• These are the quantitative targets that Chubu Electric Power aims for in this Management Vision.

(Summary)

• The environment surrounding the energy business is experiencing rapid changes.
  We intend to position this historical turning point as our second founding period for further growth, and make concerted efforts to develop new business models and strengthen the business foundation that supports them.
• By embracing the Management Vision presented today, Chubu Electric Power Group will achieve sustainable growth as an “total energy service corporate group that is one step ahead” and that provides services that exceed the expectations of customers ahead of its competitors.

(Electric power supply results)

• Now I will move on to peak supply and demand results for this winter. 
• We estimated the peak load for Chubu Electric Power this winter to be 22.57 GW for the maximum power three-day average, and 23.56 GW for the one-time peak load under estimations of a harsh winter comparable to 2011 levels.
• However, the actual peak load results from December 2015 to February 22, 2016 were 23.05 GW for the maximum power three-day average and 23.39 GW for the one-time peak load. Both were recorded in January.
• The main reasons for this apparently include increased operational rates of heating. This occurred because the higher-than-usual temperatures plunged from average year-levels as a dense mass of cold air came in during late January.

(We appreciate your energy conservation efforts)

• Customers including households, companies, local governments, and many other parties from local communities have cooperated in energy conservation efforts again this winter. 
• Conscientious energy conservation efforts, such as setting lower temperatures on air conditioning or turning off unneeded lights, have enabled us to provide a stable supply of electricity.
• I take this opportunity to extend my sincere gratitude for the cooperation provided on energy-saving.
• The energy conservation period, requested by the national government, lasts until March. We ask that energy-saving efforts be continued within reasonable bounds.

(In conclusion)

• As for the assessment for this winter’s supply and demand results, we have yet to analyze and evaluate the impact of economic conditions and other factors. We will report again as soon as we complete detailed examinations.
• That concludes my remarks for today.