Chubu Electric Power Co.,Inc. | January 2019 Regular Press Conference : President Katsuno's Message - Key Point of President's Regular Press Conference (2019)

Key Point of President's Regular Press Conference (2019) January 2019 Regular Press Conference : President Katsuno's Message

January 31, 2019

Chubu Electric Power Co.,Inc.

  • I will be discussing the following matters today:
    • FY2018 third quarter financial results
    • Chubu Electric Power’s executive officers and other matters

FY2018 third quarter financial results

  • I first would like to speak about FY2018 third quarter financial results.
  • The consolidated sales for the third quarter of FY2018 was 2 trillion 199.1 billion yen. While there were reductions in the amount of electricity sold, increased fuel cost adjustments and greater amounts of surcharge and subsidy pertaining to renewable energy resulted in a 136.4 billion yen profit increase on a year-on-year basis.
  • Consolidated ordinary income marked 90.3 billion yen.
  • I would explain about the main reasons of the fluctuation. In addition to reducing fuel costs, making efforts for fuel procurement at the Nishi-Nagoya Thermal Power Station End, we increased base cost efficiency, but rising cut off errors led to a profit decrease of 25.8 billion yen.
  • Profits excluding cut off errors was 151 billion yen, an increase of 21 billion yen.
  • Let me turn to the earnings outlook for FY2018.
  • Based on fuel cost movements, we have corrected our forecasted earning values announced on October 26.
  • Consolidated sales are expected to record 3 trillion, unchanged from the last announcement.
  • Consolidated ordinary income is expected to increase by 10 billion yen, to reach 110 billion yen due to reductions in cut off errors due to falling fuel prices.
  • Profits excluding cut off errors is expected to be 160 billion yen, unchanged from the previous announcement. We are expecting to meet the managerial goal of 150 billion yen. 
  • Chubu Electric Power will maintain company-wide efforts to streamline its management and work to meet the expectations and trust of customers, shareholders, and society alike.

Chubu Electric Power’s executive officers and other matters

  • I now would like to address Chubu Electric Power’s executive officers and other matters.
  • Japan’s energy business system is facing a historic turning point. We will be integrating the thermal power generation business and JERA in April 2019 and spinning-off the general transmission and distribution business and the electricity retail business into different companies in April 2020 in order to further increase independence in each business area.
  • To strengthen new business initiatives for our growth strategy, we will be establishing the Business Creation Headquarters in April of this year.
  • Next, let me introduce the new executive system designed to maximize the organizational system’s functions. This will come into effect as of April 1.
  • First, regarding our representative directors and managing executive officers,
  • Satoshi Onoda will resign as Director as of March 31.
  • Yoshinori Masuda, Representative Director, will be appointed a Director, Executive vice president, and the general manager of the Business Creation Headquarters to promote new initiatives for the growth strategy.
  • He will also be appointed the President of CHUDENKOGYO Co., Ltd. to increase profits of our group company.
  • As for Managing Executive Officers, Toshiharu Sasaki will be appointed a Managing Executive Officer and the general manager of the Shizuoka Office.
  • Turning to Executive Officers,
  • Experienced personnel who excel in strategy-building, managing skills and leadership will be assigned to appropriate positions. At the same time, Chubu Electric Power will again not hesitate in appointing young and competent individuals to stimulate the organization.
  • Advisors are currently being loaned to other external companies and organizations and treated much like executive officers. The name of their position will be changed to “Executive Officer Status Equivalent” as of April 1.
  • A position named “Fellow” has been newly established for general manager-level employees with a high level of expertise, and one employee has been appointed to the position.
  • Finally, I would like to touch on retiring Managing Executive Officers and Executive Officers.
  • Two Managing Executive Officers and seven Executive Officers will be retiring as of March 31.
  • Under the new executive system decided today, Chubu Electric Power will continue to pursue its unwatering mission of “delivering the energy that is indispensable to people’s lives and so contributes to the development of society”, grow existing energy businesses, and integrate them with new energy services to pioneer a new age for energy as we aim for further growth.
  • This ends my presentation.