Chubu Electric Power Co.,Inc. | June 2017 Regular Press Conference : Chairman Mizuno's Message - Key Point of President's Regular Press Conference (2017)

Key Point of President's Regular Press Conference (2017) June 2017 Regular Press Conference : Chairman Mizuno's Message

June 28, 2017

Chubu Electric Power Co.,Inc.

  • Today I will be discussing :
    • General Meeting of Shareholders

General Meeting of Shareholders

  • I first would like to report that the General Meeting of Shareholders successfully concluded today.
  • This year's General Meeting lasted 2 hours and 40 minutes, and 1,100 shareholders were in attendance.
  • In addition to being provided with a report on Chubu Electric Power’s fiscal 2016 business status, attendees at the meeting deliberated on a total of seven resolutions, consisting of three proposed by the company and four by shareholders. The three company-proposed resolutions were accepted by a majority of shareholders.
  • Our officers provided thorough answers to shareholders’ questions, ranging widely from topics on Hamaoka Nuclear Power Station to such critical management issues as:
    • Management streamlining efforts
    • Dividends (which was company-proposed matter), and Directors’ bonuses
    • Internal company system that launched in April 2016
    • Gas sales strategy
    • Repercussions in LNG procurement from Qatar

      Today’s General Meeting was an opportunity for Chubu Electric Power to receive valuable feedback from shareholders.

  • Now I would like to turn from the General Meeting of Shareholders to the local economy of the Chubu region.
  • The region’s economy has been gradually picking up against the backdrop of recovery in consumer spending and productions/exports, and tighter employment situations.
  • Still, the future is uncertain because of such factors as US President Donald Trump’s management of economic policies, economic trends in emerging nations and resource-rich countries, and development in the UK’s Brexit negotiations.
  • Notably, the development of protectionist US policies and movements in exchange rates could affect the economy of the Chubu area, which is supported by the export industry. We will be closely observing future advances.
  • Turning to the environment surrounding the energy business, the situation is drastically changing with full gas retail deregulation starting this April following last April’s liberalization of electric power.
  • With the size of the energy market shrinking, competition for electric power and gas is expected to become more intense.
  • In addition to that, we are expecting to see the legal unbundling of the power transmission/distribution business in 2020.
  • Seeing this historical turning point as an excellent growth opportunity, efforts are underway for our Group as a whole to realize our development strategy. Examples include branching out into new business areas and expanding the Group’s business areas by creating added value.
  • The Group also is uniting and continuously implementing measures to further streamline our management, aiming for a stronger financial footing.
  • Whatever the business environment may be, our mission as an electric utility to provide environmentally-friendly and high-quality energy in a safe, reasonable and stable manner will remain unchanged.
  • Chubu Electric Power Group will contribute to developing the regional community and society at large by making effort to fulfill this unchanging mission.
  • At the same time, we at Chubu Electric Power Group will seek to become a leading total energy service corporation that provides better-than expected service ahead of competitors, thereby continuing to serve as an enterprise which our customers, shareholders, and investors can turn to and trust.