Back to 2008 listOverview of the Operating Objectives for 2008
— Chubu Electric Power Group: Focused on Energy, Meeting a Range of Customer Needs —
March 26, 2008
Chubu Electric Power Co., Inc.
[Enterprise Group Image Goals]
As a Multi-energy Services Group based in the Chubu region, we will deliver new value to our customers with energy as the core, and achieve sustainable growth for the entire group.
[Management Objectives (Target year: FY2010)]
Sales target for electric power
Residential sector: Increase the number of all-electric homes to over 600,000
Commercial/industrial sector: Create 800 MW of demand by promoting the use of electricity for kitchens, air conditioning and so on
Sales target for gas, LNG, and on-site energy business:
45 billion yen in combined sales for three businesses
Financial targets (consolidated):
All group efforts are focused on meeting the following targets.
| Items | Targets (Consolidated) | Target Year |
|---|---|---|
| Ordinary Income | 160 billion yen or more | 4-year average from FY2007 to FY2010 |
| Return on Assets (ROA) | 4.1% or more | |
| Operating Cash Flow | 470 billion yen or more | |
| Outstanding Interest-bearing Debt | 2,600 yen billion or less | End of FY2010 |
(Note) Ratio of assets = ROA (Return on Assets) = (Ordinary income + Interest expenses) / Average total assets at beginning and end of the period
[Four Pillars of Management and Specific Efforts]
1. Sales Efforts Geared Toward Customer Satisfaction
• As a Multi-energy Services Group, we will provide full service and establish positive presentation activities to deliver several types of "new value," including resolving customer issues related to energy and the environment, proposing customer lifestyles, and providing information and developing and disseminating technologies.
Review of Electricity Rates
Although a severe business environment is expected to continue due to the rise in the cost of crude oil and other factors, we will review electricity rates from April 2008 based on the success of more efficient management to help our customers as much as possible.
For Home
We will positively support an abundant and comfortable life using electricity by promoting clean, safe, comfortable, and economical, all-electric homes.
• Propose a new lifestyle (including the e-lifestyle information center "Design Room," and the lifestyle proposal "Heart Bridge")
For Business
As a group, we will provide total solution services to completely answer the diverse needs of customers with agreements for high-voltage and extra high-voltage electricity, such as cost reduction, high quality electrical power, reduced environmental impact, energy equipment control.
• Propose e-Air Conditioning (electric A/C systems), and E-Kitchens (electric kitchen systems) (codevelopment of e-A/C machines, development of e-Kitchen PR facilities, etc.)
• The Gas Sales & Service Department was established in July 2006 to provide the framework for centralized development of gas sales using Chubu-owned pipelines, LNG sales by tanker trucks through the group company LNG Chubu CORPORATION, and on-site energy sales and service by C ENERGY CO., INC. We are now able to meet a variety of needs more efficiently as a one-stop energy solution provider.
• To investigate and develop overseas business opportunities, and support existing projects and procurement of fuel, we set up an office in Bangkok in February 2006, and in Doha in July 2007. We are making active efforts to expand business by positioning the period from now until 2010 as an "Overseas Energy Business Development Period."
- • Investments in power generation, environment-related business
(Participation in IPP business in Thailand, Mexico, and Qatar) - • Consultancies
(received 110 cases or more to date) - • Cooperative, exchange businesses
(accept trainees, dispatch experts, exchange with other countries' electric power suppliers, etc.)
2. Stable Generation and Reliable Supply of Affordable, High-Quality Energy
While ensuring energy security and environmental protection, we will systematically and efficiently organize and operate facilities from a medium- to long-term perspective to generate affordable, superior energy and provide a reliable supply for our customers.
Efforts to ensure reliable energy supply into the future
- • Stable and economical fuel procurement, efforts to ensure an optimal mix of power sources, and active commitment to nuclear power.
- • Steady and systematic construction and repair of transmission and distribution facilities.
Efficiency in facility organization, operation, and procurement
- • Efficiency in facility organization
(Using a combined-cycle generation; decommissioning costlier, less efficient power plants) - • Efficiency in facility operation, maintenance
(Increase in total thermal efficiency at thermal power stations, reduction of T/D loss) - • Efficiency in material and fund procurement
(Procurement SCM, balanced borrowing for the short/long terms)
Efficiency in business operations
- • Industry's highest standard for labor productivity
(comparison in terms of the ratio of electric energy sold per employee) - • Use of information technology
(Redevelopment of internal business support system, etc.)
3. Enhancement of Corporate Value by Strengthening the Group
While aiming to achieve management objectives for 2010, we will work for greater corporate value as a multi-energy services group to respond to the expectations of our stockholders and investors.
While promoting restructure of the group from the viewpoint of realizing the collective strength of the group, we have worked to improve group management through such means as introducing a "group results evaluation system." Based on such efforts, we will aim to further improve collective strength, and work to enable cooperative business operations by clarifying the roles of Chubu Electric and the group companies.
4. Working Proactively to Practice Corporate Social Responsibility
While thoroughly implementing regulatory compliance, and keeping our commitment to nurture ties with the local community, we will take the initiative in matters of corporate social responsibility (CSR) as a good corporate citizen delivering "security" by promoting care for the environment and improving a relationship of trust with the local community, among other efforts.
Also, in March 2008, we revised the "Chubu Electric Power CSR Declaration" to the "Chubu Electric Power Group CSR Declaration." The company group will actively promote CSR efforts, while each company will maintain its own identity.
Efforts toward "Management and Economy"
- • Revision of our management structure (Introduction of external directors, restructure of the executive officer system)
- • Strengthening internal controls and risk management systems
Efforts to protect the "Environment"
- • Effective use of resources
(Efforts toward pluthermal, promotion of new energy, etc.) - • Reduce impact on the environment
(Cutting of CO2 emission base units, striving for zero emissions, etc.) - • Improve environment management levels
(Promotion of environmental business management, implementing environmental training) - • Strengthening links with local community and society
(Efforts toward strengthened communication, links to local societies, etc.)
Efforts toward "Society"
- • Continue efforts toward the operation of stable and safe facilities with priority on public and employee safety, the basis of trust
- • Contribute to the local community and society as a group through institution of a "Chubu Electric Power Company Group Social Contribution Basic Policy."
[Basic Policy on Allocation of Operating Cash Flow]
For optimal use of the results of management activities for all stakeholders, we have established the following guidelines regarding the allocation of operating cash flow.
We will continue to seek optimal utilization of our operating cash flow as circumstances allow.
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