Key Point of President's Regular Press Conference
Key Point of President's Regular Press Conference
FY2024 Q2 Financial Results & October 2024 Regular Press Conference: President Hayashi’s Message
October 29, 2024
Chubu Electric Power Co.,Inc.
- I will be discussing the following matters today:
- Financial results for the second quarter of fiscal 2024
- Investment in DK Corporation
Financial Results for the Second Quarter of FY2024
- First, I would like to discuss our financial results for the second quarter of FY2024.
- Consolidated net sales for the second quarter of FY2024 totaled 1,766.4 billion yen.
- Due to a decrease in fuel cost adjustment and other factors, it decreased by 75.0 billion yen year-on-year.
- Ordinary income totaled 187.9 billion yen.
- The income decreased by 189.3 billion yen year-on-year as a result of the reduction in time-lag margins, a decrease in the percentage of power procurement through the wholesale power trading market in Miraiz, and an increase in expenses related to supply and demand adjustment in Power Grid.
- Consolidated ordinary income excluding the time-lag margins was about 189.0 billion yen, a decrease on the order of 68.0 billion yen year-on-year.
- Interim net income attributable to owners of the parent company amounted to 146.9 billion yen, a decrease of 164.5 billion yen year-on-year.
Interim dividend
- The interim dividend of the current period was 30 yen per share.
Business forecast for FY2024
- Now, I would like to discuss our business outlook for FY2024.
- With regard to the outlook for FY2024, we have revised the consolidated financial forecast announced on July 31, based on the situation in the first half of the fiscal year and other factors.
- Net sales are expected to be around 3,600 billion yen, which is unchanged from the previous announcement.
- Ordinary income is expected to be around 275.0 billion yen.
- We expect an increase of about 60.0 billion yen from the previous announcement due to a reduction in power supply procurement costs at Miraiz and a decrease in costs for supply and demand adjustment at Power Grid, in addition to an increase in the operation of cooling facilities due to higher-than-normal temperatures during the summer.
- Net income for the period attributable to shareholders of the parent company is expected to be approximately 210.0 billion yen, an increase of approximately 40.0 billion yen from the previous announcement.
- The business environment remains uncertain due to the tense situation in the Middle East and other factors, and there is a risk of a major impact on income and expenditures depending on trends in fuel prices and the supply and demand of electric power.
- The Group will strive to steadily produce management results and increase corporate value by expanding investment in growth to realize our management vision, while working to reduce fluctuations in income and expenditures by strengthening our market responsiveness.
Investment in DK Corporation
- Next, I would like to discuss our investment in DK Corporation.
- Toward the realization of "Chubu Electric Power Group Management Vision 2.0," we are promoting various initiatives to promote our regional infrastructure business by leveraging our ties with local communities, expertise in infrastructure operation, and environmental technologies that we have cultivated through our electricity business. Specifically, we have defined four areas of focus: resource recycling, water supply and sewerage, forestry, and regional transportation, and aim to contribute to our customers and the community by solving regional issues.
- Chubu Electric Power has decided to acquire a portion of the shares of DK Corporation from its shareholder, Swing Corporation, for the purpose of participating in the water supply and sewerage field among our regional infrastructure projects. This is the first time that the company has invested in a company in the water and sewerage field .
- DK Corporation, the company in which we are making this investment, is engaged in meter reading and fee collection for water and sewerage services, as well as system development and operation to meet the needs of local public enterprises, etc., and water supply equipment management services.
- In particular, DK Corporation has the largest market share in Japan for meter reading and fee collection services based on the water supply population, which is the population living within the water supply area and receiving water supply from the water utility, and has a large number of contracts, mainly in large and medium-sized urban areas.
- With this investment, we hope to further promote its regional infrastructure business and provide multi-utility services that transcend the boundaries of each business domain. By steadily advancing these initiatives, Chubu Electric Power will help realize a decarbonized, recycling-oriented society and circular economy, and contribute to solving issues faced by local governments and customers.