Key Point of President's Regular Press Conference

Senior Managing Executive Vice President Mizutani’s message at the news conference announcing financial results for Q3 2022

January 30, 2023
Chubu Electric Power Co.,Inc.

I will be discussing the following matters today:
- Financial results for the third quarter of fiscal 2022

Financial results for the third quarter of fiscal 2022

Consolidated net sales for the third quarter of FY2022 totaled 2,814 billion yen. An increase in the fuel cost adjustment as a result of soaring fuel prices among other factors pushed net sales upward by 987.1 billion yen year-on-year.
On the other hand, ordinary loss of 27.8 billion yen was recorded, resulting in deficit in the third quarter for two consecutive years.
Income decreased by 22.7 billion yen year-on-year mainly as a result of an increase in time-lag loss due to soaring fuel prices. Chubu Electric Power Grid, the power transmission and distribution company, also faced increasing costs associated with regulating power demand and supply.
Net loss attributable to owners of the parent company amounted to 37.4 billion yen, a decrease of 24.3 billion yen from the previous year, mainly due to the recording of provision for loss related to the Antimonopoly Act and impairment loss on fixed assets at a subsidiary as extraordinary loss, while gains on sales of securities were recorded as extraordinary gains due to selling a portion of policy holdings.

The FY2022 business forecast announced on October 28 was revised based on the recent trend of fuel prices.

We expect a decrease in sales of about 100 billion yen from the previously announced amount, due to decrease in fuel cost adjustment and electricity sales resulting from falling fuel prices.

We expect consolidated ordinary income to increase by 230 billion yen from the previously announced amount. This is due to decrease in time-lag loss as well as decrease in power supply procurement costs at Miraiz and costs associated with regulating power demand and supply at the Power Grid, and improvement of LNG spot procurement of JERA, resulting from fuel prices and wholesale electricity market prices drastically dropping from the previous announcement.

Ordinary income/loss excluding adjustment made to reflect accounting standards is expected to be about 160 billion yen.

In addition, net sales income/loss attributable to shareholders of the parent company is expected to be approximately 50 billion yen.

Volatility of fuel prices and wholesale electricity market prices is high and the business environment remains to be uncertain, but we will continue to make efforts to maintain stable business operations by upgrading risk management in each business area, and enhance market responsiveness to address the urgent issue of changing power supply procurement costs and costs associated with regulating power demand and supply.