Chubu Electric Power Co.,Inc. | October 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) October 2019 Regular Press Conference : President Katsuno's Message

October 31, 2019

Chubu Electric Power Co.,Inc.

  • First, I would like to express my deepest condolences for those who lost their lives in Typhoon No.19 (Hagibis) which struck Japan in the middle of this month. I would also like to offer my heartfelt sympathy to the surviving families as well as everyone afflicted by this disaster.
  • Chubu Electric Power put to work a force of approximately 11,000 personnel, including employees of our group companies, to deal with the damage wrought by Typhoon No.19. Because of the time needed to ascertain damage to equipment and work to restore service, it took a little more than one week in some areas to resolve the power interruptions and restore service to all of our customers.
  • I would like to offer my sincere apologies for the tremendous hardship and inconvenience that this placed on so many of our customers.
  • Chubu Electric Power is putting together an action plan that takes into account last year’s Typhoon No.21 (Jebi) and No.24 (Trami) and addresses our systems for facility restoration, communication with customers, as well as coordination with local governments and other organizations, and we will strive to be better prepared to respond to emergencies and disasters in the future.
  • Typhoon No.19 interrupted service to approximately 140,000 households, which is over 10% more than were affected by Typhoon No.24 last year. However, a look at the extent of the damage to equipment and facilities showed that the level of damage to power lines was about 60% compared to that from Typhoon Trami, but approximately 1.7 times the number of utility poles were damaged.
  • Moreover, there was also massive damage from flooding after rivers overflowed. To recommence service to our customers, we performed meticulous restoration work, which even included measuring wiring insulation inside individual homes.
  • Typhoon No.19 presented conditions and factors different from last year’s typhoon damage. Because we were able to verify these circumstances, we are now putting that information to use in the process of analyzing whether or not our current action plan functioned effectively and, moreover, what sort of new lessons and issues need to be addressed. We are also in the process of reviewing measures for improvement.
  • In addition, after Typhoon No. 15 (Faxai), the Ministry of Economy, Trade and Industry resumed meetings of the “Working Group on Electricity Resilience” which has proceeded to conduct a multi-perspective review of a variety of matters, such as formulating recovery forecasts and structuring support systems. We will also be reflecting the results of these reviews in our own countermeasures.
  • Prolonged service interruption also affects communications, water supply, sewage, and other basic infrastructure, so this situation has once again made us keenly aware that “electric power is the infrastructure underpinning all infrastructures.”
  • With the awareness that there is no end to emergency preparation, we will take the lead in working to strengthen not only our disaster management measures, but also ensure electric power quality and enhance our resilience.

Financial Results for Q2 2019

  • Next, I will discuss our financial results for the second quarter of fiscal 2019.
  • Consolidated operating revenues for the second quarter of fiscal 2019 was 1,572.3 billion yen, up 84.8 billion yen year-on-year due to an increase in fuel cost adjustments and other factors.
  • Consolidated ordinary income was 143.5 billion yen, up 49.3 billion yen year-on-year as time-lag loss turned into a time-lag gain after fuel prices fell.
  • I would like to note that ordinary income excluding the effect of the time-lag gain was approximately 112 billion yen, which is a decrease on the order of 20 billion yen.
  • Next, our interim dividend will be 25 yen per share.
  • Next, there is no change in our business outlook for fiscal 2019, as we expect approximately the same results as those released previously on July 31.
  • We forecast consolidated operating revenues of 3.5 trillion yen and consolidated ordinary income of 185 billion yen.
  • Ordinary income excluding the effect of time-lag gain or loss is expected to come in at around 150 billion yen.
  • We will continue to work group-wide to streamline our business and increase revenues so that we may earn the trust and meet the expectations of our customers, shareholders and society.
  • This ends my presentation.