Key Point of President's Regular Press Conference
Press Conference on the FY2010 Financial Statement
April 28, 2011
Chubu Electric Power Co.,Inc.
First, I will be talking about one item:
- Chubu Electric's financial statements for FY2010.
(Summary of financial statements)
- In our electricity business, while there was a decline in retail unit prices, we recorded an increase in revenue due to factors including an increase in service charges resulting from an increase in the volume of power sold.
- Ordinary income, on the other hand, declined. In the electricity business, despite factors that contributed to the increase in revenue, such as increases in the volume of power sold, other factors including a decline in retail unit prices and rising fuel costs led to the decline in income.
- As a result, both the consolidated and non-consolidated financial statements reported increases in revenue, but decreases in profit.
Operating revenue: 2,330.8 billion yen (up 4.1%)
Operating income: 174.2 billion yen (down 12.9%)
Ordinary income: 146.2 billion yen (down 18.1%)
Net income: 84.5 billion yen (down 22.1%)
Thus, the group has ended the year with increased revenue but decreased profit for the first time in three years since the FY2007 report.
- Next, for Chubu Electric's non-consolidated financial statement, please see the reference material.
Operating revenue: 2,178.2 billion yen (up 4.5%)
Operating income: 157.8 billion yen (down 12.3%)
Ordinary income: 131 billion yen (down 16.8%)
Net income: 75.8 billion yen (down 28.8%)
The non-consolidated financial statement shows increased revenue but decreased profit for the first time in two years since the FY2008 report.
- 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, 2011, 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 FY2011)
- At present, we are not yet able to offer a clear indication of when Hamaoka Nuclear Power Station Reactor No. 3 will recommence operations. We hope to resume operation of Reactor No. 3 after taking measures to further enhance safety (including tsunami countermeasures) and giving the local community a thorough explanation of safety at the Hamaoka Nuclear Power Station.
- Our current cash flow outlook is based on the assumption that Reactor No. 3 will be shut down until the end of June.
- We anticipate that the volume of electric power sold will be 127.5 TWh, 2.6% lower than the previous year.
- As for sales, in the electricity business the volume of electric power sold will decline, but service charges will rise because of increased retail unit prices. Because of this and other factors, we forecast that our consolidated net sales will show increased revenue at 2,530 billion yen.
- Concerning ordinary income, on the other hand, while we expect factors such as rising retail unit prices and an increase in the volume of nuclear power generated to improve income in our electricity business, we forecast that our consolidated ordinary income will decline to about 105 billion yen due to factors that include a decline in the volume of electric power sold and an increase in fuel costs.
- As for non-consolidated cash flow, we are forecasting that operating revenue
will be about 2,370 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.
- That concludes my remarks for today.