Key Point of President's Regular Press Conference

Key Point of President's Regular Press Conference

June 2022 Regular Press Conference : President Hayashi's Message

June 30, 2022
Chubu Electric Power Co.,Inc.

Following today's Annual General Shareholders Meeting and the subsequent meeting of the Board of Directors, I have been appointed as the President and Director of the company.

I will be discussing the following matters today:

  • The 98th Annual Shareholders Meeting
  • Executive Officer Assignments
  • Electricity Supply and Demand of this Summer

The 98th Annual Shareholders Meeting

  • First, I would like to discuss the 98th Annual Shareholders Meeting. First of all, I am pleased to report that the Annual Shareholders Meeting has been successfully concluded.
  • To protect the health of shareholders and prevent spread of the novel coronavirus, this year’s Annual Shareholders Meeting was livestreamed as was done last year. At the meeting venue, we also implemented measures, such as arranging the seating to maintain social distancing.
  • The duration of this year's General Meeting was 1 hour and 57 minutes, 6 minutes longer than last year. It was attended by 185 shareholders, which was 79 more than last year.
  • The Annual Shareholders Meeting heard the company’s business status report for FY2021, and deliberated nine items on the agenda: four items presented by the company and five items submitted by shareholders. The four company-presented agenda items were approved.
  • Shareholders offered invaluable opinions and asked questions about important management issues which we respectfully answered, including:
    • Hamaoka Nuclear Power Station
    • Renewable energy development
    • JERA's carbon neutrality initiatives
    • Publicity regarding electricity supply and demand, etc.
    • Executive compensation
  • In addition, nine directors were elected to the Board of Directors to further enhance the corporate governance function while addressing various management issues promptly and accurately in the midst of rapid changes in the business environment.
  • In this appointment, we have increased the number of outside directors by one to four, as it has become more and more important to reflect the opinions of outside directors with diverse knowledge and experience in our business operations to reform our business structure as stated in our Management Vision 2.0.
  • Yoko Kudo of Ernst & Young ShinNihon LLC, who has a wealth of experience and broad insight, has been appointed as our new outside director.
  • Under the new management structure, we are working quickly to restore profits in the domestic energy business in order to improve the current difficult balance of payments situation. Moreover, for the realization of Management Vision 2.0, the Group will work together as one to advance efforts to
    • restart the Hamaoka Nuclear Power Station,
    • realize a carbon-free society,
    • ensure stable supply, as well as
    • create community support infrastructure.

Executive Officer Assignments

  • Next, I would like to talk about personnel assignments of our executive officers effective July 1.
  • The number of personnel changes totals 1,301, which is 56 fewer than the previous fiscal year.
  • The three Chubu Electric Power companies are promoting autonomous efforts of each operating company and strategic allocation of human resources to new growth areas to achieve the "accomplishment of our unchanging mission" and "creation of new value" stated in Management Vision 2.0, as well as promoting the growth and success of each individual human resource, which is the very essence of corporate value.
  • The changes in executive positions include personnel assignments to strengthen the divisions established in April of this year, such as the Global Business Division which aims to strengthen and expand overseas business, and the Carbon Neutral Promotion Division of Chubu Electric Power Miraiz, which aims to simultaneously achieve "decarbonization" and "safety, stability, and efficiency."
  • In addition, to respond to the spontaneous motivation of each and every one of our human resources, we have strengthened our system for promoting new business areas while also utilizing an internal recruiting system.
  • Furthermore, to enhance the diversity of our core human resources for sustainable growth, we are actively hiring career human resources who can be an immediate work force in new business areas, etc., and are promoting initiatives to support the further advancement of women.
  • We have appointed 26 women to executive positions, which is approximately 10% of the total number of appointees, and is on the same level as the percentage of women in the entire workforce.
  • We believe that this is the result of our efforts to create the environment in which each and every employee can play an active role regardless of gender and to foster awareness, including the introduction of systems that enable more flexible work styles and training to dispel stereotyped gender-based role divisions.
  • The three Chubu Electric Power companies will continue to strengthen their human resource strategies so that all employees can demonstrate their individuality and capabilities.

Electricity Supply and Demand of this Summer

  • Lastly, I would like to talk about the electricity power supply and demand this summer.
  • This weekend marks the beginning of July and the start of full-blown summer.
    We project that we will be able to ensure a 3% reserve capacity, the minimum necessary for a stable supply, even if the once-in-a-decade heat wave occurs in the Chubu area, but we are still at risk and in a very severe situation.
  • There are also concerns that stable supply may be disrupted in the event of trouble at power plants or transmission and substation facilities, and the risk of fuel procurement has been increasing due to the situation in Ukraine and other factors.
  • In consideration of these situations, the three Chubu Electric Power companies have established the "Electricity Supply and Demand Task Force" headed by myself, and we take all possible measures on both sides of supply and demand, to ensure a stable supply of electricity.

(Supply-side initiatives)
  • Specifically, considering the severe power supply and demand situation of this summer, we will strive to maintain stable supply by operating thermal power plants in excess of their rated output and utilizing adjustment force (Power Source I´) to meet the surge in demand caused by the extremely hot summer.
  • In addition, as we announced on June 20, as a result of the joint public offering for additional supply capacity conducted by eight general transmission and distribution companies including Chubu Electric Power Grid, we are able to add approximately 1.36 million kW of supply capacity nationwide.
  • We will ensure the operation and maintenance of power plants along with transmission and substation facilities so that the supply capacity secured through these efforts will not be reduced due to equipment problems.

(Demand-side initiatives)
  • As we have recently requested, we would like to ask for your cooperation in saving electricity as much as possible from July 1 to September 30 within a reasonable range.
  • •"Saving electricity within a reasonable range" means that we ask you to use electricity efficiently and try not to waste electricity by "turning off lights frequently," "not leaving the TV on," and "unplugging electrical appliances that are not in use for a long period of time."
  • In particular, we would like to ask for the cooperation of those who are elderly or have health concerns, within a reasonable range based on their own circumstances.
  • We will continue to ask our corporate customers to use their production facilities efficiently and to adjust their operations, and we will proceed with coordination to expand demand response contracts.
  • The Group also posts the "Electricity Forecast" on its website for its customers to check the daily electricity supply and demand situation, and provides information on effective ways to save electricity in an accessible manner through social networking services, commercials and other media.
  • To overcome the severe supply and demand situation, the Group will do its utmost to ensure the stable delivery of electricity, and we ask our customers for their cooperation in saving electricity to the extent possible.
  • This ends my presentation.

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