Key Point of President's Regular Press Conference
Key Point of President's Regular Press Conference
February 2021 Regular Press Conference : President Hayashi's Message
February 24, 2021
Chubu Electric Power Co.,Inc.
- Today, I will be discussing growth area initiatives to achieve our Management Vision.
- Establishment of a new company Chubu Electric Power Miraiz Connect by Chubu Electric Power Miraiz and Mitsubishi Corporation
- Consolidation of ES-CON Japan Ltd.
- In our Management Vision formulated in 2018, Chubu Electric Power stated that we would increase consolidated ordinary profit to ¥250 billion or more in the second half of the 2020s and convert the our portfolio ratio of domestic energy business to new growth fields and overseas energy business from the traditional ratio of 4:1 to a ratio of 1:1. In other words, we stated that we would transform our business model.
- This transformation will enable us to provide services offering solutions to social issues as well as providing a safe and comfortable lifestyle through the use of community support infrastructure, thereby enabling us to prevail over the competition in the domestic energy business as well as create and provide new added value.
Establishment of Chubu Electric Power Miraiz Connect
- As president, I would like to share my thoughts on the establishment of Chubu Electric Power Miraiz Connect and discuss more specifically our business development.
- In April, Chubu Electric Power Miraiz and Mitsubishi Corporation will establish a new company Chubu Electric Power Miraiz Connect providing “yorisou (nestle-close)” services to our customers over the course of their lives mainly on the themes of watching over family and loved ones, childcare support, diet, and health as a way to enrich our customers daily lives.
- Chubu Electric Power Miraiz Connect will seek to offer services that meet a variety of needs arising in our customers daily lives and events over their lives through a fusion of digital technology with knowledge of a broad range of industrial networks and businesses that Mitsubishi Corporation possesses and the connections with customers that Chubu Electric Power Miraiz has developed in delivering energy to them.
- In order to launch community-based services initially in the Chubu area, the first step is to make preparations so that the new company will be able to soon offer a food delivery service that delivers to customers’ homes fresh seafood and other products from membership warehouse store Costco as well as life planning services in collaboration with the Tokyo Marine Group.
- Our aim with these new services is to move forward also in the life care sector, cooperate with a variety of companies and local municipalities endorsing these efforts, and to integrate and deliver services for all aspects of life according to the needs of each and every one of our customers.
- In addition, we plan to launch these services nationwide through a variety of contact points, such as the new Lawson shops that are currently being considered in addition to Chubu Electric Power Miraiz’s Club KatEne online service for households. It is our hope that customers with whom the Chubu Electric Power Group has yet to have any dealings will avail themselves of these services.
- Chubu Electric Power Miraiz Connect plays a key role in construction of the community support infrastructure that is an aim of the Chubu Electric Power Group. Through the provision of a whole range of services for our customers providing them with an optimal lifestyle, we will create “bonds” with families that extend for generations as well as “connections” in life, community and business.
- We expect Chubu Electric Power Miraiz Connect to contribute to the further development of the community and society and be a new engine driving growth of the Chubu Electric Power Group.
Consolidation of ES-CON Japan Ltd.
- Next, I would like to talk about the consolidation of ES-CON Japan Ltd.
- Today, Chubu Electric Power Group decided to consolidate ES-CON Japan, an equity-method affiliate, to further strengthen our group real estate business and integrate the formation of new communities.
- Specifically, Chubu Electric Power Group will acquire additional shares in ES-CON Japan and raise our stake from the current 33% to 51.5% assuming that third-party allocation of newly issued shares is authorized at the annual shareholders meeting which ES-CON Japan has scheduled for March 2021.
- Chubu Electric Power Group entered into a capital alliance with ES-CON Japan in August 2018 and made the company an affiliate the following month.
- Thereafter, we have worked synergistically employing the know-how that ES-CON Japan possesses about real estate development and the links to community residents that we have built up through our energy business to generate synergies in the real estate business, including initiating multiple joint projects for condominiums, commercial facilities and other properties mainly in the Chubu area.
- Consolidating ES-CON Japan and enhancing the capital relationship will provide a framework for the Chubu Electric Power Group to integrate and promote our aim of realizing “new forms of community.”
- More specifically, this consolidation will accelerate our efforts to merge the energy and community support infrastructure businesses with the real estate business to maximize the synergistic effects, thereby enabling us to further urban development providing a safe and comfortable lifestyle to community residents.
- In the future as well, the Chubu Electric Power Group will expedite commercialization in growth areas and strive to maximize value offered to our customers and society with the goal of achieving our Management Vision, and we will work on solutions to a variety of social issues to realize sustainable growth.