June 2015　Regular Press Conference : President Katsuno's Message

• Under outgoing President Mizuno's supervision, the Chubu Electric Group has both aimed at and steadily pressed ahead to become a “corporate group that satisfies all energy-related needs and keeps growing”. 
• It is my intention to use whatever capabilities I have to help the Chubu Electric Group develop further, and I look forward to your support in doing so. Thank you for your confidence.

(Achieving our unchanging mission)

• The environment for our electricity business has changed significantly after the Great East Japan Earthquake. Four years have passed since the disaster, but the situation remains difficult as you can see from how nuclear power stations nationwide have yet to resume operations.
• In terms of the electric power system reform, the Organization for Cross-regional Coordination of Transmission Operators, commenced its business as the 1st step of the reform.
• Schedules are set to start a full deregulation of retail power next April, which is the reform’s 2nd step, and 2020 will see the 3rd step which involves the legal unbundling of the power distribution business.
• With gas system reforms also underway along with electric power, the energy industry is facing a historical turning point.
• Amid these drastic transformations, Chubu Electric Power must take the initiative in making changes instead of remaining passive. The management team including myself will unite with our employees and draw on unconventional ideas to renew Chubu Electric Power.
• Meanwhile, there is also a critical concept that we must maintain: Chubu Electric Power’s mission to stably supply safe and affordable energy to our customers, and thereby develop together with our customers and the regional community.
• Our sense of responsibility to deliver a stable supply of electricity as an electric utility is our longstanding asset. I will assume this asset from Mr. Mita and Mr. Mizuno, and preserve this into the years to come.
• While “changing what needs to be changed, and keeping what needs to be kept,” we laid many different preparatory steps to achieve our growth strategy. This includes the conclusion of a comprehensive alliance with Tokyo Electric Power Company, the Freeport LNG Project, and the PPS buyout.
• To reap the fruits from the preparatory steps that we laid, we must take action beyond such boundaries as electricity and gas, domestic and international, or Chubu and non-Chubu regions, and achieve development in a solid manner.
• By rendering our growth strategy a reality, we look to raise our corporate value, and share the achieved outcomes with our customers, shareholders, investors, and employees.
• The Chubu region has supported and fostered Chubu Electric Group thus far, and will remain as the foundation in the process of pressing ahead with our growth strategy. We will step up efforts to develop on a continued basis in partnership with the Chubu region.

(Three aspirations)

• Upon my appointment as President, I would like to present my three aspirations.

『Create a vibrant and new Chubu Electric Group.』

• My first aspiration is to create a vibrant and new Chubu Electric Group.
• I perceive the accelerating transformations in the business environment as an opportunity for Chubu Electric Group to achieve a major development.
• Area-basis initiatives to respond to the electric power system reform includes:
  The power generation area’s efforts to render the growth strategy concrete in a drive to further raise competitiveness from a global perspective
  The retail area’s efforts to adopt the mindset of customers in a drive to create and offer services that go beyond the imagination of customers
  The power distribution area’s efforts to further streamline stable supply in the new framework amongst the unbundling of electricity generation and transmission
  Each area will proactively engage in these efforts.
• Amid the major changes occurring with the electric power system reform, Chubu Electric Power will work together as a company on the efforts that I mentioned in order to fulfil our mission of delivering a stable supply of safe and affordable energy. The key factor under drastic business environment transformations is to have each employee and workplace constantly set their sights high and face their individual issues in a proactive manner.
• The workplace that I am hoping to create is one in which, with regard to straightforward future company concepts that we managers present,
  Employees understand the concepts thoroughly and engage in bold undertakings by embracing innovative ideas
  Responsible members who lead the field not only stimulate the enthusiasm of business sites, but keep an eye out to enable the sites to collaborate and inspire each other.
• My duty is to create a vibrant and new Chubu Electric Group, and I believe that a lively feeling will result from having all company organizations freely inspire one other.

『The key lies in the field』

• My second aspiration is to draw on my own field experience and stand at the forefront to lead employees through the numerous management issues that we confront.
• What I learned from my field experience is that the key always lies in the field.
• In the late 80s to the early 90s, I was part of the maintenance business associated with power generation and transformation. Instead of the previous approach that involved uniform and regular-basis disassembly inspections and part replacements, I made a shift to an operation and deterioration status-based maintenance approach which thereby enabled us to both reduce costs and raise qualities. This approach is often referred to as condition-based maintenance.
• This experience served as a cue for my belief that the key lies in the field.
• The same holds true for the sales area. We must find new values that would satisfy our customers, constantly consider how to deliver the values to them, and put it into practice in order for Chubu Electric Power to stand as a company that customers turn to amid the full deregulation of retail power.
• I have no doubt that the key lies amongst customers. In other words, we can find it in the front-line sales field that makes contact with customers.
• In order to have customers turn to Chubu Electric Power as a daily-life coordinator that serves across energy domains and satisfies all clients, we must get involved with customers, thoroughly understand their needs, and offer detailed services that go beyond their imagination.

『Determined to succeed』

• My third aspiration is to be determined to succeed in order to accelerate our growth while the electric power industry moves into a stage of full-fledged competition.
• Success requires taking initiatives and proactively engaging in a range of issues.
• It goes without saying that some failures would be experienced, but we will not give up. Setting our sights high, we will prepare another initiative and make countless efforts while embracing a determination to succeed.
• I repeat again that the key to success lies in the field. We will unite as a company to have a constant awareness of competition, and continue to think hard about how we can take the lead, be it small or minute, over other enterprises.
• In an endeavor to scale up our competitiveness and revenue base, Chubu Electric Group will continue to engage in tireless efforts. At the same time, we will work to improve our quality and service by having awareness that the work of each member is connected with our customers, make steady efforts that correspond to the role of members, and thereby win trust from our customers.
• These are my three aspirations.

(Further enhancing Hamaoka Nuclear Power Station’s safety)

• I next would like to discuss a vitally important issue for Chubu Electric Power: Hamaoka Nuclear Power Station.
• The national government’s Basic Energy Plan distinctly positions nuclear power generation as an important base load power, and we regard it as a critical power to achieve the S+3E*: simultaneously attaining energy security, economy and environmental conservation upon the fundamental premise of safety.
  *Safety + Energy Security, Environmental Conservation, Economy
• Our customers, particularly from the industrial community of the manufacturing industry center Chubu region, expects us to stably upkeep affordable electricity rate levels in terms of our mid- to long-term production plan development. In order to cater to these demands, it is essential to harness nuclear power generation; an approach that is insusceptible to crude oil prices and other particulars.
• Chubu Electric Power will earnestly address equipment measures to enhance the safety of Hamaoka Nuclear Power Station, and at the same time amplify non-physical measures by preparing a disaster management system and striving to enhance training, as well as strengthening cooperation with local governments.
• Without being limited to meeting the national government’s regulatory requirements, we will proceed with efforts to voluntarily and continuously enhance safety by focusing on boosting “governance”, “risk management”, and “risk communication.”
• Chubu Electric Power will continue to make company-wide efforts in thoroughly explaining our undertakings to the local community and the public at large, and work to have many people understand our efforts to the extent possible through engaging in interactive communications.

(Summary)

• These are my thoughts as I assume the post of President.
• I look forward to everyone's continued support and advice for Chubu Electric Group.

• I would now like to talk about the main points regarding the appointments of officers effective July 1st.
• This fiscal year’s appointment of transfer involved 1,743 people, which exceeded the previous year. The feature of this year is that we worked on putting the right people in the right places so as to respond to the full deregulation of retail power, the electric power system reform, and other management issues.
• In view of our key management issue of encouraging the active involvement of women, this fiscal year again saw active assignments of female employees.
• With this transfer, we are boosting the number of female general managers of customer service office, who takes the responsibility at the field’s front-line, from one to five. As a result, five of our customer service offices, or around 10% of our offices, will be headed by female employees.
• We will continue our efforts towards encouraging the active involvement of female employees.

• The height of summer will be upon us with the arrival of July next week. As described in Document 2, the reserve margin for August’s maximum power three-day average will be 9.2%, and we can ensure the 8% reserve margin which is the benchmark for a stable supply.
• The government has requested energy conservation measures without numerical targets for this summer as well. We would like to again request our customers to continue their efforts to conserve energy without unreasonably affecting their daily activities.
• While asking our customers to cooperate in energy conservation, Chubu Electric Power will conduct inspection and maintenance for power stations and transmission and conversion facilities to reliably deliver a stable electricity supply to customers.
• That concludes my remarks for today.