Key Point of President's Regular Press Conference
Key Point of President's Regular Press Conference
January 2024 Regular Press Conference : President Hayashi's Message
January 31, 2024
Chubu Electric Power Co.,Inc.
- I will be discussing the following matters today:
- Financial results for third quarter of FY2023
- Revision of year-end dividend forecast to provide value to stakeholders
- Measures to reduce burden of electricity and other costs in FY2024
- Organizational revisions and executive personnel changes
Financial results for third quarter of FY2023
- First, I would like to discuss our financial results for the third quarter of FY2023.
- Regarding the consolidated financial results for the third quarter, net sales decreased by 116.9 billion yen year-on-year to 2,697.1 billion yen, due to a decrease in fuel cost adjustment and other factors.
- Ordinary income was 436.9 billion yen, an increase of 464.8 billion yen year-on-year, mainly due to the time-lag loss shifting to time-lag gain, a decrease in power supply procurement prices at Chubu Electric Power Miraiz, and a decrease in expenses related to supply and demand adjustments at Chubu Electric Power Grid.
- Consolidated ordinary income with the time lag removed was 319 billion yen, an increase of roughly 148 billion yen year-on-year.
- Consolidated net sales are expected to be approximately 3,650 billion yen, consolidated ordinary income is expected to be approximately 410 billion yen, and net income attributable to owners of the parent is expected to be approximately 330 billion yen.
- There is no change in our business outlook for FY2023, as we expect approximately the same results as those announced previously on October 27.
Revision of year-end dividend forecast to provide value to stakeholders
- Next, I would like to talk about providing value to our stakeholders.
- In order to steadily share management results with stakeholders, the Chubu Electric Power Group has decided to revise its year-end dividend forecast and implement measures to reduce the burden of electricity and other costs in FY2024.
- Consolidated ordinary income excluding time lag for FY2023 is assumed to be 300 billion yen. As long as current fuel prices and other conditions continue, we expect to secure a certain level of profit in the next fiscal year and beyond.
- Although the business environment remains uncertain, we have revised our year-end dividend forecast from 25 yen to 30 yen in light of capital market expectations and other factors based on our shareholder return policy.
Measures to reduce burden of electricity and other costs in FY2024
- Next, I would like to discuss measures to reduce the burden of electricity and other costs in FY2024.
- The Chubu Electric Power Group promptly reflects the business environment in its various measures, and has decided to continue measures to reduce electricity and other costs by approximately 130 billion yen in FY2024, the same amount as in the current fiscal year.
- Firstly, I would like to talk about the burden reduction measure for special high-voltage and high-voltage customers.
- With regard to electricity rates for FY2024, all special high-voltage and high-voltage customers in the Chubu area will receive a discount of 1.74 yen per kWh from the fuel cost adjustment unit price for the full year.
- The scale of implementation is expected to be approximately 120 billion yen, which is the same level as the burden reduction measures in FY2023.
- Secondly, I will explain the measures to reduce the burden for low-voltage customers.
- We will reduce the burden of electricity bills on mainly household customers, conduct campaigns to support the customers with life stage changes, and promote the customers’ use of renewable energy.
- The first is a 10% discount on electricity rates for the three months from July to September 2024, targeting not only households with children and elderly residents, but also customers who have newly signed contracts due to moving or other reasons.
- Second, in order to provide customers with peace of mind for every stage of life, we offer cancer insurance to customers aged 20 to 49 and nursing care insurance to customers aged 50 to 79 for one year free.
- The third is about the campaign to assist the installation of equipment that promotes customers' use of renewable energy.
- As in FY2023, gift cards will be given to customers who install solar power generation equipment or storage batteries through KatEne Lease. We will also implement an initiative to use electricity wisely and economically in accordance with the amount of electricity generated from renewable energy sources by utilizing the Demand Response (DR) service, NACHARGE.
- In addition, to ensure that customers can use EVs, which are becoming more popular to achieve decarbonization, without worrying, we will provide new support for the development of EV charging infrastructure, including subsidies for the installation of EV charging equipment at customers' homes and commercial facilities.
- The scale of implementation for low-voltage customers is expected to be approximately 8 billion yen, which is the same level as the burden reduction measures in FY2023.
- We will continue to consider further campaigns to support our customers' lives and new lifestyles.
- We also keep discussing how to provide value to our stakeholders, including our business partners, local communities and society, and our employees.
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Organizational revisions and executive personnel changes
- Next, I would like to talk about the organizational revisions and executive personnel changes.
- In order to further accelerate our efforts to realize our Management Vision 2.0, we have decided to revise our organization and establish a new executive structure effective April 1, 2024.
- There are four key points of organizational revision and executive personnel changes.
- The first point is strengthening DX promotion structure and cyber security. DX Promotion Office will be newly established by integrating the DX promotion function of DX Strategy Promotion Office with IT System Center's IT system-related planning, development, maintenance, cybersecurity response, and other functions.
The office will be headed by Mr. Uchida, who is currently the head of IT System Center and a systems specialist, and will also serve as Chief Information Security Officer (CISO).
This will strengthen the DX promotion structure and security measures for the entire group. - The second point is strengthening legal and compliance structures.
The legal and compliance structures of Business Administration Division will be made independent, and Compliance Division will be newly established directly under the President.
Mr. Hasegawa, who is currently General Manager of Business Administration Division and has deep knowledge of legal affairs and compliance, will be assigned as Senior Managing Director to further strengthen prompt and accurate responses to legal risks and compliance. - The third point is review of the structure regarding human resources strategy. In May last year, we compiled the basic concept of the company’s human resources strategy to secure and develop a diverse range of human resources and to enable them to fully demonstrate their abilities. Going forward, the strategy formulation function of Human Resources Strategy Office and the system design and other functions of Human Resources Center will be integrated into a single structure to accelerate specific initiatives related to human resources.
- The fourth point is review of the structure for restarting the Hamaoka Nuclear Power Station. The Hamaoka Nuclear Power Station and Hamaoka Community Relations Office, which are currently under the jurisdiction of Nuclear Power Division, will be transferred directly under Nuclear Power Division General Manager, and Mr. Ihara, current Nuclear Power Division General Manager, will be promoted from Senior Managing Director to Vice President and will work full-time at Hamaoka. Division General Manager himself will listen to the voices of local communities rigorously while leading the power station and regional offices directly, responding to various issues more promptly and accurately than ever before.
- In addition, Mr. Katayama, Senior Managing Director and Deputy General Manager of Nuclear Power Division, who is concurrently serving as General Manager of General Affairs, Public Relations, and Community Involvement, will be dedicated to Nuclear Power Division and will also be in charge of Hamaoka Community Relations Office in Shizuoka on a full-time basis. In view of the situation at the Hamaoka Nuclear Power Station, which has been shut down for an extended period of time, we will strengthen our efforts to coexist in harmony with the local community in order to gain further understanding and trust of the local community regarding nuclear power.
- Through these efforts, we will reinforce our on-site and local response capabilities for the restart of the Hamaoka Nuclear Power Station and accelerate our efforts to restart operations.
- Along with the above four points, transfers and recruitment are made to enhance the overall strength of the company through the effective utilization of each director's past experience and abilities.
- I would like to continue on and talk about the determination of director candidates for approval at the annual shareholders meeting scheduled for June.
- Chubu Electric Power plans to transition to a company with an audit and supervisory committee, subject to approval at the General Meeting of Shareholders.
- Seven candidates for directors, excluding members of the supervisory committee, are reappointed, and Mr. Kazuhiro Nabeta, who will assume the position of Executive Vice President and General Manager of Corporate Strategy Division on April 1, is newly appointed.
- Regarding the candidates for directors who are the supervisory committee members, there are two candidates, Mr. Tomoyuki Sawayanagi and Mr. Kiyoaki Nakagawa, who are currently Audit & Supervisory Board members, and two new candidates, Mr. Shinji Furuta, currently Senior Managing Director, and Ms. Momoko Murase, currently working as an attorney.
- Mr. Murase has been an attorney for many years and has a wealth of experience and broad insight.
- We will announce the candidate for one new outside Director as a member of the supervisory committee at a later date as soon as it is determined.
- Next is the executive structure of Chubu Electric Power Miraiz as of April 1.
- As for the Representative Director and President, Mr. Otani will step down and assume the position of Senior Managing Executive Officer and General Manager of Business Creation Division of Chubu Electric Power. We look forward to Mr. Otani using his experience at Chubu Electric Power Miraiz to develop new businesses with a greater awareness of customer service.
- Mr. Kamiya, who is currently Managing Executive Officer, General Manager of Alliance Promotion Office, Corporate Strategy Division, and General Manager of Regional Infrastructure Business Promotion Office, will take over this position.
- Mr. Kamiya is a person who can lead employees with strong leadership skills, drawing on his extensive experience through Corporate Strategy Department and the resource recycling business.
- The environment surrounding the Chubu Electric Power Group is undergoing major changes at what could be called a turning point, and under a new organization and new executive structure, we will make a concerted effort to firmly meet the expectations of all stakeholders and achieve even greater growth.
- This ends my presentation.