Press Conference on the FY2009 Financial Statements

(Summary of financial statements)

• Sales in the electricity business showed a decline in revenue. The volume of power sold declined and retail unit prices decreased, causing a drop in service charges.
• With regard to ordinary income, a variety of factors impeded cash flow in the electricity business, including a decline in the volume of power sold, decreased retail unit prices and a reduction in nuclear generation, but we recorded a profit due to declines in the price of fuel, among other factors.
• As a result, both the consolidated and non-consolidated financial statements showed decreased revenue but increased profit.

(Consolidated)

• Regarding the Chubu Electric Group's consolidated financial statement, please see Attachments1, "Financial Report"
• Here are some highlights:

Sales: 2,238.5 billion yen (down 10.8% YoY)
Operating income: 200.0 billion yen (up 9.8% YoY)
Ordinary income: 178.5 billion yen (up 36.8% YoY)
Net income: 108.5 billion yen


Thus the group has ended the year with decreased revenue but increased profit for the first time in six years since the FY2003 report.

(Non-consolidated)

• Next, for Chubu Electric's non-consolidated financial results, please see Attachments1.

Sales: 2,084.3 billion yen (down 10.7% YoY)
Operating income: 179.9 billion yen (up 9.9% YoY)
Ordinary income: 157.4 billion yen (up 55.4% YoY)   
Net income: 106.4 billion yen

As with the consolidated statement, therefore, the non-consolidated financial statement shows decreased revenue but increased profit for the first time in six years since the FY2003 report.

(Dividends)

• Regarding dividends, please see Attachments1.
• For dividends, as per our Policy on the Shareholder's Return, the Company will work to maintain the level of dividends at 60 yen per annum per share. This is to stably respond to shareholder expectations, while continuing to promote investments for building and operating facilities, such as Hamaoka Nuclear Power Plant, which are essential to a stable supply of electricity.
• As for year-end dividends for the fiscal year ended March 31, 2010, the company intends to honor this basic policy and pay out year-end dividends of 30 yen per share, the same as the interim dividend.

(Cash flow outlook for FY2010)

• Now, regarding the cash flow outlook for FY2010, please see Attachments1.
• We anticipate that the volume of electric power sold will be 2.2% higher than last year, at 125.5 TWh.
• We forecast that consolidated net sales will rise to about 2,300 billion yen with the growth of service charges due to an increase of electric power sold in the electricity business and other factors.
• On the other hand, although we do expect some factors such as the increase of electric power sold in the electricity business and increased nuclear power generation to improve the bottom line, we forecast that the rise in fuel prices will lead consolidated ordinary income to decline to a forecast 105 billion yen.
• As for non-consolidated cash flow, we forecast that sales will be about 2,150 billion yen and ordinary income about 90 billion yen.
  We therefore expect that both the consolidated and non-consolidated financial results will be characterized by increased revenue and decreased profit, compared to the previous period.

(In closing)

• While we are beginning to see signs of a recovery in economic activity, the situation remains severe, with Chubu Electric recording a reduced volume of electric power sold against the previous fiscal year for the second consecutive year in FY2009.
  In addition, crude oil prices are increasing little by little with the sense of recovery in the world economy, and we therefore cannot dispel a feeling of uncertainty with regard to the future.

• Against the background of this business environment, I believe that our efforts to stably operate Hamaoka Nuclear Power Station, with safety as our first priority, and to secure a stable and cost-efficient supply of fuel, are becoming increasingly important.
• Chubu Electric will continue to pursue maximum cost savings and take measures to further streamline and improve efficiency in all areas of management. We will also strive to fulfill our mission as a public utility-the safe and stable provision of affordable and high-quality electricity to our customers.

That concludes my remarks for today.

Reference

• Financial Report[PDF:291KB]