Key Point of President's Regular Press Conference

Key Point of President's Regular Press Conference

Regular Press Conference for January 2012

January 31, 2012
Chubu Electric Power Co.,Inc.

  • Today, I will be discussing
  • FY2011 Third Quarter Financial Results
  • Chubu Electric’s FY2013 Regular Recruitment Plan

FY2011 Third Quarter Financial Results

(Summary of third quarter financial results)

  • First, I will discuss our FY2011 third quarter financial results. Please look at Attachment 1, “FY2011 Third Quarter Financial Results.”
  • While there was a decline in the volume of power sold in our electricity business, consolidated net sales increased by 30.6 billion yen to 1745.0 billion yen due to factors including an increase in service charges from an increase in retail unit prices.
  • Looking at consolidated ordinary income, a variety of factors including the reduced power generation due to the shutdown of all units at the Hamaoka Nuclear Power Station saw us record a loss of 41.8 billion yen, our first-ever ordinary loss in the third quarter.

(Cash flow outlook for FY2011)

  • Next, I would like to discuss the outlook for this fiscal year. Please turn to Attachment 1.
  • In terms of our consolidated results for FY2011, we project a 75 billion yen operating loss and a 100 billion yen ordinary loss due to factors including an increase in fuel costs as a result of the shutdown of all units of the Hamaoka Nuclear Power Station.
  • This will represent our first operating loss and ordinary loss since we commenced publishing consolidated results in FY1994.
  • In addition, we project a 90 billion yen operating loss and a 115 billion yen ordinary loss in our non-consolidated results.
  • This will represent our first non-consolidated operating loss since the foundation of the company in 1951, and only our second non-consolidated ordinary loss since 1979, comprising a period of 32 years.
  • Consolidated ordinary loss has been reduced by 55 billion yen against the figure we announced on October 28, 2011 due to the reflection of revisions in conditions such as exchange rates and factors including reductions in costs due to efforts to enhance operational efficiency.
  • Nevertheless, the forecast remains for a significant loss, and the severe business environment that we face will also remain unchanged.
  • We will continue to work as a company to ensure operational efficiency, and we will overcome these difficulties.

FY2013 Regular Recruitment Plan

  • Next, I will move on to discuss our Regular Recruitment Plan for FY2013.
  • To begin, I would like to discuss Chubu Electric’s fundamental thinking with regard to the recruitment of personnel.
  • Companies in the field of power and energy are long-term enterprises, which must follow guidelines that consider the situation 50 or even 100 years in the future, and they are enterprises that must be passed on generation after generation.
  • The outcomes that we are producing today are the fruit, harvested after the passage of many years, of seeds sown by those who have gone before us.
  • However, as an industry we face unceasing dangers and continuing crises. Chubu Electric is itself at present facing its most difficult situation since its establishment.
  • In order to enable us to overcome the many crises to be faced in the next 50 or 100 years, to remain a company that is trusted by its customers and the broader society, and to smoothly pass on the reins of business, what will be essential for us is the strong will and creativity possessed only by highly motivated personnel.
  • A power company provides a working environment in which one can experience the sense of mission and the pride of playing a part in supporting the fundamental infrastructure of society.
  • In guiding the creation of a work culture at Chubu Electric, I strive towards the goal of bringing together the intelligence and experience of personnel who are professionals in their jobs on a basis of teamwork, who by working together display a capacity that could never be achieved by any single individual.
  • The type of personnel that I am therefore hoping will choose their future in the business of providing power are individuals who, even in difficult circumstances, look towards the future and observe the changes in our society, who accept those changes, and who are able to actively respond to them.
  • Allow me now to discuss our specific plans concerning recruitment activities.
  • Since FY2008, to enable us to maintain and to pass on the technological prowess that supports our ability to provide a stable supply of power, and to offer our customers a service that matches their expectations, we have recruited groups of around 500 new staff members in each intake, seeking to ensure human resources to support our future.

(Number of new recruits for FY2012)

  • First, the number of new recruits we will be welcoming in FY2012.
  • In our intake in April 2012, we will recruit 547 new staff members, a higher figure than the planned 540.
  • Against a background of increasing concern among the public over energy issues, we are taking in a large number of recruits with a deep awareness of the issues facing us, and who are strongly motivated by a sense of the mission of the power industry to uphold the public good. I am strongly relying on them, and expect great things from them in the future.

(Regular Recruitment Plan for FY2013)

  • Looking at our Regular Recruitment Plan for FY2013, our goals of providing a service to our customers and maintaining and passing on our technical expertise remain unchanged, and we intend to once again recruit around 500 new members of staff in our regular intake.
  • However, the business environment that confronts us is a genuinely difficult one, for example in the increase in fuel costs for thermal generation to make up for the shutdown of the Hamaoka Nuclear Power Station.
  • Given this, we have conducted a further review of the necessary number of new personnel, and have decided that our intake in FY2013 will be around 10% lower than this fiscal year, at 490.
  • At the risk of repeating myself, it is my hope that strongly motivated young people with the spirit to see difficulties as challenges will choose to enter the power industry. It is with personnel of this type that I seek to work together into the future to achieve the further development of the energy industry.
  • This concludes my remarks for today.


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