November 2021 Regular Press Conference : President Hayashi's Message

• First, I would like to discuss the “Chubu Electric Power Group Management Vision 2.0.”
• Since Chubu Electric Power Group formulated the “Chubu Electric Power Group Management Vision” in March 2018, society’s structure and our lifestyles have been considerably changed due to the progress of digital transformation (DX) and the COVID-19 pandemic.
• In particular, the business environment surrounding the energy business has reached a historical turning point with the acceleration of government decarbonization policies in the aim of realizing carbon neutrality by 2050.
• We view these changes in our business environment as a new business opportunity and challenge to be forthrightly addressed as we look toward our vision of society in 2050. That is why we formulated the “Chubu Electric Power Group Management Vision 2.0.”
• I believe that the growth and excellent performance of each and every one of our group companies’ human resources, the engine driving our business activities, are the intrinsic value of our corporate group. “Management Vision 2.0” anticipates the society that we are aiming for in the year 2050 and embodies what our group will realize by the year 2030 so that we may offer diversified value to our customers and society as well as contribute to sustainable development of our community and society through the growth and excellent performance achieved by each and every one of our valued human resources.

(Social change as we move toward 2050)

• We envision that society in 2050 will be one that is carbon-free, safe, secure, decentralized, and recycling-oriented. We also anticipate that electric power will allow us to optimally control all kinds of things.
• Our group will contribute to the transformation of society by removing carbon from and advancing our electric power system, which is the core infrastructure sustaining every other infrastructure.

(Initiatives as we approach 2030)

• To realize optimal recycling of energy and resources as well as a safe and secure life as we approach 2030, our group will provide services in three strata.
• The first is the infrastructure for delivering tangible services and goods whether it be in energy, real estate, or another sector. The second is the platform that connects these businesses with data to provide the system upon which these services are offered. And, the third is the applications for delivering new value-added services that the platform produces.
• Our initiatives in these three strata will enable us to facilitate expansion of our business domain and transformation of our business model.
• In expanding our business domain in the infrastructure stratum, in addition to the energy business, which is our group’s foundation, we will expand into the real estate business and lifestyle-related businesses such as medical services and healthcare as well as resource recycling, in which we are planning new engagements.
• In our resource recycling business, we will build upon the basis of the power generation technology that is our group’s strength and the relationship of trust that we have with the people in the community, together with a variety of partners, to launch waste power generation, biomass power generation, and other businesses that provide CO₂-free energy and recycled products. We are currently conducting detailed reviews in the process of commercializing these plans.
• The platform stratum will link customer to customer as well as customer to business, providing a transaction system that will serve as a foundation for delivering a range of services. As DX evolves and amidst more diversified links connecting one person to another and the individual to society, our group will serve as a platform for connecting a variety of communities thereby improving the level of our customers’ and society’s satisfaction. And, I believe that our platform business will assume greater importance in the future.
• More specifically, in addition to the energy management system that connects customers who would like to maximize the value of solar power generation or other distributed power sources with small businesses that would like to make use of such resources, we will proceed to develop, among other projects, a non-fossil value trading system linking customers desiring non-fossil value with renewable energy power businesses.
• The application stratum will leverage data accumulated on the platform to deliver value-added services, such as interactive services providing not only features and performance, but also fun and comfort.
• More specifically, we will deliver services visualizing the CO₂-free status, “watch” monitoring services, P2P which is a service supporting surplus power transactions, and a variety of other offerings.
• In this way, along with expanding from the energy business into real estate and resource recycling in the area of infrastructure, we will accelerate a variety of initiatives for the platform and applications, and proceed to transform our business model.
• The acceleration of these initiatives will allow the Chubu Electric Power Group to deliver timely optimal solutions tailored to the diverse needs of our community and customers.

(Rolling out energy solutions to meet customer needs)

• In March of this year, the Chubu Electric Power Group announced the “Zero Emissions Challenge 2050.” This strategy includes expanded use of renewable energies, cofiring hydrogen and ammonia in thermal power production, and maximizing nuclear power generation in the acceleration of efforts to decarbonize society as a whole in addition to energy systems.
• First, we have raised our previous goal of developing at least 2 million kW of renewable energy by around the year 2030 to a higher target, which we set, of at least 3.2 million kW.
• Next, in addition to cofiring hydrogen and ammonia in thermal power plants, our group, which includes JERA, will proceed to offer such solutions to individual customers and participate in the construction of a supply chain extending from the global supply network to regional supply networks.
• Also, with regard to nuclear power generation, we will strive to restart Hamaoka Nuclear Power Station while maintaining the utmost priority on assuring safety and communicating with members of the community to gain their understanding.

(Strengthening our human resources strategy and technology development, and investing strategically)

• I believe that it is our human resources, our intrinsic corporate value, that support these challenging initiatives as we move towards 2030.
• Our group will strengthen technological development and our human resources strategy of diversifying, advancing, and appropriately assigning our personnel so as to promote the growth of each and every one of our people and help them excel in their performance, thereby contributing to the sustainable development of our society through the resolution of issues our community and society face.
• We will strategically invest 1 trillion yen over the 10-year period through 2030 principally in our global and renewable energy businesses toward our aim of achieving the level of income that is our goal for 2030.

(Summary)

• As I discussed today, we are proceeding with specific preparations in our resource recycling business and the promotion of DX so that we may commercialize biogas power generation and other such sources as well as apply for DX certification.
• As we steadily implement the initiatives set out in “Management Vision 2.0,” the Chubu Electric Power Group will create new value springing from the resolution of issues our community and society face as well as realize sustainable growth together with all of our stakeholders.

• I would like to talk about the company-wide disaster prevention training exercise that will be held for two days on November 30 and December 1. The Chubu Electric Power Group annually conducts company-wide disaster prevention training with the objective of enhancing our field response capabilities, including rapid facility recovery, appropriate information communication, local government liaisons, and other proficiencies in preparation for a massive earthquake in the Nankai Trough or other major disaster.
• In this exercise, we will train using a scenario where a massive Nankai Trough earthquake causes a large-scale service interruption and nuclear emergency along with a planned power outage in the Chubu area, which will all take place in conditions posing a high risk of COVID-19 infection.