Key Point of President's Regular Press Conference

Key Point of President's Regular Press Conference

Press Conference on the FY2014 Financial Results (and April 2015 Regular Press Conference: President Mizuno’s Message)

April 28, 2015
Chubu Electric Power Co.,Inc.

  • Today I will be discussing :
    • Chubu Electric's financial statements for FY2014.
    • FY2015 Operating Objectives
    • Chubu Electric Power’s executive officers and other matters

Overview of financial results

  • Consolidated net sales in the electricity business reached 3,103.6 billion yen, a gain of 261.4 billion yen YoY. Despite a decrease in the volume of electric sales, this owes to such factors as increases in electricity rates, a rise in electric light rates due to fuel cost adjustments, and an increase in energy business among other activities.
  • In the area of consolidated ordinary profit (loss), despite an increase in fuel cost resulting from higher fuel prices our results improved by 152.8 billion yen YoY for an ordinary profit of 60.2 billion yen. This owes to increased income due to electricity rate rises and fuel cost adjustments. 
  • Next, for Chubu Electric's non-consolidated financial results.
    Operating revenue: 260.8 billion yen increase YoY for 2899.0 billion yen profit
    Operating income: 168.0 billion yen increase YoY for a 90.8 billion yen profit
    Ordinary income: 146.1 billion yen increase YoY for a 41.9 billion yen profit
    Net income: 94.6 billion yen increase YoY for a 27.3 billion yen profit
  • This is the first time in four years that we went into the black in operating, ordinary and net income in both our consolidated and non-consolidated results. 

(Earnings outlook for FY2015)

  • Next, let’s look at the earnings outlook for FY2015.
  • With decreased income due to drops in fuel cost adjustment, consolidated net sales are expected to fall down to 2860.0 billion yen.
  • Regarding consolidated ordinary income, in conjunction with a sharp fall in fuel price continuing from last year, we are expecting to see considerable different-timing margins resulting from a time lag in incorporating fuel cost and fuel cost adjustments. We are thus expecting increased profits for 130 billion yen.


  •  I would lastly like to talk about dividends.
  • As a general rule, Chubu Electric Power continues to make investments geared to developing and administrating facilities that are essential to supply electric power in a safe and stable manner. At the same time, we strive to arrange consecutive dividends upon considering financial conditions.
  • As a result of increasing electricity rates and engaging in uncompromising efforts to attain management efficiency in FY2014, we secured a certain extent of black figures.
  • Setting continued efforts to maximize management efficiency as a prerequisite and taking account of financial conditions, we are planning 10 yen/share dividends for FY2014’s year-end dividend.
  • We are expecting in FY2015 a 120 billion-yen ordinary income for non-consolidated financial results. Around 80 billion yen amongst this amount, however, is a different-timing margin associated with the sharp fall in fuel price since last year, and this could undergo a major change as a result of future fuel price or exchange levels.
  • Thus our dividend forecast for FY2015 is 20 yen for a year per share. This is a result of comprehensively considering mid- to long-term financial conditions and management environments, including expectations for profit levels, apart from different-timing impacts, to remain YoY.
  • Chubu Electric Power will continue its efforts to achieve further management efficiency, and will work to cater to customers and shareholders, as well as the society’s expectation and trust.

FY2015 “Operating Objectives”


  • These “Operating Objectives” summarize the directions the Chubu Electric Power Group wishes to take over the medium term as well as specific measures for achieving them, and it is our practice to publicize these objectives widely every year. 

(Four Key Initiatives)

  • We will set the following as four key initiatives to particularly focus on, and make group-wide efforts to address them:
    • “Initiative to further enhance safety of Hamaoka Nuclear Power Station” 
    • “Initiative for the stable supply of electric power”
    • “Initiative for management efficiency”
    • “Initiative for the changing business environment”

(Initiative to further enhance safety of Hamaoka Nuclear Power Station)

  • The first among the four key initiatives I would like to talk about is the “initiative to further enhance safety of Hamaoka Nuclear Power Station.”
  • We have always been incorporating the latest learning on Hamaoka Nuclear Power Station’s equipment countermeasure, and is currently continuing on earthquake, tsunami and other serious accident countermeasures to increase safety.
  • Hamaoka Unit 4 has undergone an examination to check its adaptability to the new regulatory requirements laid out by the Nuclear Regulation Authority. We will further make our best efforts to promptly obtain the Nuclear Regulation Authority’s confirmation that Unit 4 adapts to the new regulatory requirements.
  • While preparing a disaster management system and striving to enhance training, we also are making every effort for non-physical aspects that include the development of disaster management systems and strengthening training.
  • Without being limited to meeting the national government’s regulatory requirements, we see a need to voluntarily and continuously enhance nuclear safety so that we never repeat severe nuclear accidents. We will thus proceed with efforts to further enhance safety by focusing on boosting “governance”, “risk management”, and “risk communication.”

(Initiative for stable supply of electric power)

  • Next, I would like to talk about our “Initiative for stable supply of electric power.”
  • Following the suspension of operations at the Hamaoka Nuclear Power Station, Chubu Electric Power sought for customers’ cooperation in energy conservation efforts and fully implemented power supply initiatives including the following:
    • Introducing new powers such as Joetsu Thermal Power Station and Tokuyama Hydroelectric Power Station Unit 2
    • Continuing the operation of aged thermal power stations
  • This has enabled us to offer stable supply to the Chubu region while we also cooperated to achieve solid supply and demand across the country by providing and sharing power between other utilities.
  • The operation of Hamaoka Nuclear Power Station is still suspended for the summer of FY2015, but we will continue to carry out power supply initiatives,and reliably achieve stable supply for the Chubu region with focused inspections on the power station and power transmission facility.

(Initiative for management efficiency)

  • I next would like to talk about the “initiative for management efficiency. ”
  • Group-wide initiatives for efficiency are underway to reliably achieve the 191.5 billion yen goal that was incorporated to the authorization costs on electricity rates.
  • In FY2014, we added 25 billion yen on the efficiency goal, and successfully achieved a reduction of 215.0 billion yen.
  • Rises in equipment and labor cost are expected in FY2015 and onwards, but we will continue to maximize efficiency in a group-wide manner by establishing stable supply and public safety.

(Initiative for the changing business environment)

  • The final key initiative I would like to talk about is the “initiative for the changing business environment.”
  • Changes in the national government’s energy policy, such as the electric power and gas system reform, has triggered a major transition in the business environment around Chubu Electric Power Group.
  • By adequately responding to this change, we will move forward with initiatives focusing on “strengthening competitiveness”, “increasing profit-earning opportunities”, and “responding to changing energy policies.”
  • As we previously announced, the 30th of this month will see Chubu Electric Power and TEPCO’s joint establishment of “JERA”, a new company aimed towards a comprehensive alliance covering the entire energy supply chain from upstream investments and fuel procurement through power generation.
  • We will harness “JERA’s” business activities to enable an internationally competitive and stable energy supply of electric power, gas, and other particulars, and thereby enhance our enterprise value.

(Achieving “What We Aim For”)

  • Chubu Electric Power Group will lay down the “four key initiatives” as a stepping stone to actively work to achieve “What We Aim For” in different business areas, to become “a corporate group that satisfies all energy-related needs and keeps growing.”
  • We will build on this to fulfill our social responsibility as good corporate citizens that gives people peace of mind.

Chubu Electric Power’s executive officers and other matters

  • I would next like to talk about Chubu Electric Power’s executive officers. 
  • Last month, we announced the personnel for our new Chairman and president, so today I would like to give information on the remaining personnel.
  • In order to promptly and properly deal with our management issues briefed in the “Operating Objectives”, we strived to arrange an appropriate lineup of executive officers.  

(Executive system personnel)

  • First of all, I would like to talk about Director candidates.
  • The number of directors will remain the same as prior with 12 members. 10 members have been reappointed, while there are 2 newly appointed members. 
  • All candidates have served as executive officers thus far, show a high capacity for executive operations and resolving various challenges, have both an excellent personality and insight, and are sufficiently capable of managing Chubu Electric Power. Mr. Yosinori Masuda will be serving as our new Director and Executive Vice President.

(Corporate Auditor personnel)

  • Three Corporate Auditors are completing their service term.
  • Our new full-time Corporate Auditor will be Mr. Hideki Ogawa, who currently serves as Senior Managing Executive Officer.
  • We are planning to appoint a new member as our Outside Corporate Auditor, but this will be announced at a later date.

(Retiring Officers)

  • I would now like to move on to retiring Officers. One Executive and three Corporate Auditors are retiring besides Chairman Mita. 
  • Amongst these retiring members, Outside Corporate Auditors Ms. Toshiko Aburada and Mr. Kenji Matsuo have been serving their posts for eight years from FY2007, and provided us their invaluable views and suggestions based on broad perspectives. I would like to take this opportunity to express my heartfelt gratitude to them.
  • Director and Senior Managing Executive Officer Mr. Yutaka Watanabe and full-time Corporate Auditor Mr. Masato Harada will continue to serve for us, leveraging their experiences at their new positions as an Officer for Chubu Electric Power Group’s companies. Their transference is as shown in the documentation.

(Personnel to the Executive Body)

  • Subsequently, I would like to discuss the appointments of personnel to our executive body.
  • In order to continue to quickly and steadily solve a large number of issues and outperform others in the ever-intensifying competition, we must further increase our collective strength as an enterprise.
  • Based on these points, personnel skilled in leadership, management ability, and strategy, with an abundance of work experience in the executive system as well, will be placed in the proper areas to continue working on various issues in unison with management and the field.
  • Also, in order to revitalize the organization again this time around, outstanding young talent will actively be appointed to executive officers and general managers or heads of departments.


  • What the energy business environment is encountering is a great change. 
  • Under a new management system headed by newly-appointed President Katsuno and I, Chubu Electric Power Group will continue to deliver electric power in a safe and stable manner. At the same time, we will endeavor to live up to expectations by reliably reaping the fruits from the preparatory steps that we laid for our development. We look forward for your support.
  • This concludes my remarks for today.

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