Key Point of President's Regular Press Conference

Key Point of President's Regular Press Conference

Executive Vice Persident Mizutani’s message at the news conference announcing financial results for Q1 2021

July 30, 2021
Chubu Electric Power Co.,Inc.

  • I will be discussing the following matters today:
  • Financial results for the first quarter of fiscal 2021

Financial results for the first quarter of fiscal 2021

  • In the first quarter of FY2021, Chubu Electric Power posted operating revenues of 524.9 billion yen. Application of the Accounting Standard for Revenue Recognition and other factors pushed revenue down by 157.4 billion yen year-on-year. Although expenses and revenue associated with the Feed-in Tariff Scheme for Renewable Energy were offset and operating revenues declined significantly, there was no effect on income. Excluding effect of the accounting standard application, revenue increased on the order of 9 billion yen.
  • Ordinary income was 48.5 billion yen, representing a 300 million yen rise year-on-year. This was due to, among other factors, income excluding the time lag at JERA increasing 33.3 billion yen despite the time-lag gain turning into a time-lag loss reducing income by 16 billion yen, and the increase in power procurement costs associated with the effect of competition faced by Chubu Electric Power Miraiz and rising wholesale electricity market prices.
  • In addition, consolidated ordinary income with the time lag removed was 60 billion yen, an increase of roughly 17 billion yen year-on-year.

Business forecast for FY2021

  • Next, I would like to talk about our business forecast for FY2021. We have revised our April 28 forecast to take into account recent business performance.
  • Due to the increase in fuel cost adjustment charges and other factors, consolidated revenue is expected to increase by 40 billion yen from the previous announcement to 2,400 billion yen.
  • Consolidated ordinary income is now forecast to be 110 billion yen, 20 billion yen below our previously announced figure due to a greater time-lag loss following the rise in fuel prices.
  • We estimate no change in our income forecast of 150 billion yen when the time-lag effect is removed.
  • Sales continue to be competitive and the business environment harsh. Regardless, the entire Chubu Electric Power Group will capture changes in the social structure and further intensify efforts to transform our business model aimed at the ‘creation of new value.’ We will accelerate these initiatives so as to maximize value provided to our customers and society, and strive to boost revenue as well.
  • This ends my presentation.

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