Key Point of President's Regular Press Conference
Key Point of President's Regular Press Conference
Regular Press Conference for July 2010
July 30, 2010
Chubu Electric Power Co.,Inc.
Today, I will be discussing two items:
- Chubu Electric's first quarter financial results for FY2010
- Release of"2010 Chubu Electric Power Group CSR Report"
FY2010 First Quarter Financial Results
- First, I would like to talk about Chubu Electric's first quarter financial results for FY2010.
- While the volume of power sold in our electricity business increased, we recorded a decline in revenue due to factors including a drop in retail unit prices which resulted in a decline in service charges.
- We also experienced a decline in ordinary income in our electricity business. Despite factors that functioned to increase revenue, such as an increase in the volume of power sold and an increase in the amount of power generated by our nuclear facilities, other factors including a decline in retail unit prices and rising fuel costs saw income decline.
- As a result, both the consolidated and non-consolidated financial statements showed decreased revenue and decreased profit.
- Regarding the Chubu Electric Group's consolidated financial statement for the first quarter "FY2010 First Quarter Financial Report."
- Here are some highlights:
Sales: 526.3 billion yen (down 4.5% YoY)
Operating income: 59.8 billion yen (down 34.9% YoY)
Ordinary income: 51.2 billion yen(down 39.5% YoY)
Net quarterly income: 25.6 billion yen (down 52.0% YoY)
This is the first time that we have recorded decreased revenue and decreased profit since we started tracking quarterly financial results in FY2003 first quarter.
- In addition, due to factors including an 8.6 billion yen extraordinary loss as an effect of the application of accounting standards for asset retirement obligations, we recorded a 27.7 billion yen reduction in quarterly net profit.
- Next, for Chubu Electric's non-consolidated financial statement.
Sales:499.0 billion yen (down 4.3% YoY)
Operating income: 57.9 billion yen (down 35.3% YoY)
Ordinary income: 48.7 billion yen (down 41.3% YoY)
Net quarterly income: 23.9 billion yen (down 54.5% YoY)
As was the case in our consolidated results, this is the first time that we have recorded decreased revenue and decreased profit since we started tracking quarterly financial results in FY2003 first quarter.
(Cash flow outlook for FY2010)
- Next, regarding the cash flow outlook for the next period.
- Despite the fact that our rate of use of nuclear power will decline with the extension of the period of shutdown of Hamaoka Nuclear Power Station Reactor No. 5, we project an increase in the volume of power sold and an increase in hydroelectric generation, in addition to a reduction in various expenses, and due to these and other factors we have made no changes to our previously announced performance projections.
- I will discuss the cash flow outlook for FY2010 in comparison with results for FY2009.
- We anticipate that the volume of electric power sold will be 2.7% higher than last quarter, at 126.1 TWh.
- We forecast that consolidated net sales will rise to about 2,300 billion yen with the growth of service charges due to increase of electric power sold in the electricity business and other factors.
- On the other hand, although we do expect some factors such as increase of electric power sold 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.
- Chubu Electric will continue to accord the greatest consideration to a stable power supply as well as safety, even as we pursue maximum cost savings and take measures for further streamlining and greater efficiency in all areas of management.
- We also intend to make full use of our management resources to boost the corporate value of the Chubu Electric Group as a whole.
Release of"2010 Chubu Electric Power Group CSR Report"
- Next, I will discuss the release of the "2010 Chubu Electric Power Group CSR Report.
- Chubu Electric today released its "2010 Chubu Electric Power Group CSR report," detailing initiatives undertaken to fulfill our corporate social responsibility (CSR).
- Chubu Electric began publishing Annual Environmental Reports focusing on environmental initiatives in FY1994. In FY2006, we changed the name of the report to the "CSR Report," introducing details of the company's social and economic activities in addition to its environmental initiatives. The CSR Report deals with a wide range of company initiatives undertaken with the aim of realizing a sustainable society, and also considers the outcomes of these initiatives.
- In FY2008, the report was expanded to cover the CSR initiatives of the entire Chubu Electric Group.
(Features of the report)
- I would now like to give an overview of our CSR Report.
- The 10th conference of the Conference of the Parties to the Convention on Biological Diversity, COP10, will be held in Aichi Prefecture in October of this year, and the special feature at the beginning of the report this year deals with activities in the area of"Protecting Biological Diversity,"one of Chubu Electric's important environmental initiatives.
- In FY2009, we formulated an Action Plan that provides midterm environmental targets for FY2020. In addition to discussing our level of implementation of the plan in FY2009, the CSR Report will discuss future initiatives for the three pillars of our efforts to prevent global warming-promotion of nuclear power, renewable energy sources, and energy conservation.
- Our target for the reduction of CO2 emissions is to achieve a 20% reduction in our average level of emissions per 1 kWh against figures for FY1990 between FY2008 and FY2012, the first commitment period for the Kyoto Protocol.
- While our rate of emissions per 1 kWh (emission intensity) in FY2009 was affected by the increase in hydrogen concentration in the off-gas system of Hamaoka Nuclear Power Station and reactor shutdowns due to the Suruga Bay earthquake, our use of Kyoto mechanism credits and other factors resulted in a reduction of 0.007 kg against FY2008 figures to 0.417 kg, representing a reduction of 10.2% against our base year, FY1990.
- In addition, our CO2 emissions in FY2009 were 51.17 million tons, a reduction of 3.89 million tons against FY2008 figures.
- In the future, we will continue to strive to reduce our CO2 emission intensity. On the supply front, we will actively increase our rate of use of nuclear power plants, maintaining safety as our highest priority, develop high-efficiency LNG thermal generators, conduct development programs for wind power generation, mega-solar electricity generation, and the use of other renewable energies, and make use of the Kyoto mechanisms.
- This concludes my remarks for today.