Key Point of President's Regular Press Conference

Key Point of President's Regular Press Conference

January 2016 Regular Press Conference : President Katsuno's Message

January 29, 2016
Chubu Electric Power Co.,Inc.


  • Today I will be discussing :
    • FY2015 third quarter financial results
    • Chubu Electric Power’s efforts towards the full electric power retail deregulation
    • Chubu Electric Power’s executive officers and other matters 

Summary of financial results

  • Looking at consolidated sales, lighting power charges dropped in the electricity business. Contributing factors were the mild winter and automobile-related production decreases that caused drops in electric power sales and fuel adjustment costs.
  • Other businesses also saw a decrease in energy service sales. Chubu Electric Power’s consolidated sales for the third quarter declined 132.5 billion yen on a year-on-year basis, reaching 2,126.4 billion yen. 
  • The consolidated ordinary income rose 195.1 billion yen from the year earlier, standing at 215.3 billion yen. This owes to matters in the electricity business, including the different-timing margin of fuel adjustment and fuel costs associated with fuel price reductions, as well as the falloff in thermal power fuel costs following increased hydropower generation.
  • Turning to non-consolidated financial results, sales fell 140.7 billion yen year on year and marked 1,979.8 billion yen; the operating income grew 172.3 billion yen from the same period last year and was 222.8 billion yen. Ordinary income rose 192.3 billion yen from the previous year, standing at 198.5 billion yen, and the net income for the quarter saw a 122.2 billion yen surge on a year-on-year basis, marking 141.5 billion yen. 

(Earnings outlook for FY2015)

  • The forecasted earnings values announced on October 30 have been corrected to reflect the latest performance trends. 
  • Chubu Electric Power is expecting consolidated sales of 2,870 billion yen, a drop of around 20 billion yen from the previous announcement, owing to a decrease in electric power sales.  
  • We expect to see 230 billion yen for consolidated ordinary income; a 30 billion yen rise from the previous announcement. This is a result of factoring in the expanding different-timing margin in fuel adjustment and fuel costs, which are accompanying fuel price reductions, as well as the progress made in initiatives to streamline management.

(Year-end dividend) 

  • Chubu Electric Power’s basic stance is to make effort to offer steady dividends upon giving comprehensive considerations to financial conditions, while continuing on investments for the development and management of equipment that are vital for safely and stably supplying electric power. 
  • Prospects for making progress in management streamlining efforts are looking bright in FY2015. We are thus expecting to secure our income at levels exceeding the previous year, even upon excluding the impact of different-timing margins.
  • On top of these earnings circumstances, we made a comprehensive judgement on mid- to long-term financial and business conditions alike, on the premise of continuing all-out efforts towards management efficiency, and thereby decided on 15 yen per share for the year-end dividend forecast.
  • In addition to continuously working toward management efficiency, Chubu Electric Power will make efforts to live up to the trust and expectations of our customers, shareholders, and society.

Chubu Electric Power’s efforts towards the full electric power retail deregulation

  • This month, Chubu Electric Power announced new rate menus tailored to customers in our area, along with steps to broaden our business in the Tokyo metropolitan area.

(New rate menus for the Chubu Electric Power area) 

  • Chubu Electric Power freshly arranged eight new menus centered on the following three particulars to offer further satisfaction for customers using our electricity:
    • Menus that will be cost-effective through two year contracts
    • Cost-effective menus that combine electricity rates with services instrumental in business or lifestyles
    • Menus that allow customers select optimal time slots to match their lifestyles
  • Following the day of the announcement, all customers in our area are being provided with leaflets that introduce new rate menus and services, and the steps to take when switching to the new menu.
  • In an effort to continue to serve as a top-choice utility for customers, Chubu Electric Power will provide many different opportunities to thoroughly illustrate our new rate menu and services.

(Business expansion in the Tokyo metropolitan area)

  • Given the large market size of the Tokyo metropolitan area, we see the region as an appealing business platform with high potentials for growth. Expanding operations in Tokyo and its neighboring prefectures is thus one of the key sales strategies for Chubu Electric Power.
  • For such customers as households and other low voltage electricity customers in the capital area, we are looking to distribute electric power through many different partners or direct deals, and will strive to supply electricity to 100,000 customers.

(Rate menu for the Tokyo metropolitan area)

  • The rate menu that Chubu Electric Power arranged for households in the Tokyo metropolitan area sets a flat unit cost for the consumed quantity of electricity. 
  • This is because as a newcomer to the capital area, we considered that devising a simple and easy-to-understand menu is of great importance for introducing our rate menu. 
  • Applications can be made at our website KatEne, as well as contact counters at EDION stores.

(Sales through partners)

  • Given that Chubu Electric Power lacks any contact with average households in the Tokyo metropolitan area, we will tie up with partners to actively market electric power in Tokyo and its neighboring prefectures. 
  • More specifically, we will start to:   
    • Offer electric power via the 11 city gas companies that Chubu Electric Power tied up with 
    • Offer menus that combine electricity and internet services jointly with BIGLOBE Inc.


  • With full retail deregulations, the competition is intensifying. The key for outperforming others is to provide high-level service to customers while fulfilling our mission of offering safe and quality electricity on a stable and low-priced basis. 
  • By harnessing an array of connections, we will shape our services by identifying customer needs, and thereby strive to gain customer satisfaction.
  • As a one-upped integrated energy service corporation, Chubu Electric Power will continue to provide customers with better-than-expected services ahead of competitors.

Chubu Electric Power’s executive officers and other matters

(Business environment)

  • The business environment around Chubu Electric Power is experiencing a drastic change with the full retail deregulation of electric power starting in April, along with other developments in the electric power and gas system reform. 
  • Viewing this transition in the environment as an opportunity for our further breakthrough in the future, we have devised new growth strategies and are starting to engage in proactive endeavors. One such example is the establishment of JERA.
  • Harnessing JERA to optimize the supply chain, spanning from fuel procurement to shipment and power generation, Chubu Electric Power will bolster price competitiveness and accelerate our undertakings for management efficiency.  
  • Our goal is to survive the competition and thrive further as a total energy service corporation.
  • To this end, we decided to launch an internal company system from this April. The aim is to define authority and responsibility on a per-operation basis, and to accelerate our efforts of organizing an independent corporate structure that can flexibly and swiftly cope with changes.
  • To enable officers to engage in their duties from the onset of the business year, we changed the timing of officer appointments to April 1.
  • We arranged to make our announcement and finalization of the new executive system today on these premises. I now would like to introduce them.

(Representative Director, Managing Executive Officer, Company President personnel)

  • Mr. Masanori Matsuura will take over as Director and Executive Vice President, and will also serve as Power Network Company President. 
  • Regarding other Company Presidents, Director and Senior Managing Executive Officer Mr. Shigenobu Shimizu will be installed as Sales Company President, and Director and Senior Managing Executive Officer Mr. Kozo Ban will take the rein as Power Generation Company President. 
  • All of these individuals have already been well engaged in Chubu Electric Power’s operations. I am confident that they will manage business in an appropriate fashion, and enable the companies to achieve growth. 
  • We also made new appointments for four Senior Managing Executive Officers and one Managing Executive Officer. 
  • All of these five members have previously exhibited high abilities in executing their duties and resolving issues as Chubu Electric Power officers, and with their excellence in character and profound insight, they are fully capable of handling the management of Chubu Electric Power. 
  • I note that Director and Executive Vice President Mr. Matsubara will serve as Director from April.

(Executive system personnel)

  • Well-experienced personnel that excel in strategy-building, managing skills, and leadership will be assigned to appropriate positions. At the same time, we will not hesitate to appoint young, competent members in an effort to stimulate the organization.  

(Retiring managing executive officers and executive officers)

  • Senior Managing Executive Officer Mr. Hiromi Yamazaki will be transferred to Japan Nuclear Safety Institute (JANSI), effective from February 1, and hence will retire on January 31. 
  • Senior Managing Executive Officer Mr. Kenichi Suzuki and two other executive officers will also retire on March 31.

(Partial company reorganizations)

  • Next I would like to talk about partial company reorganizations besides the launch of the internal company system. 
  • Carrying forward initiatives to further step up the safety of Hamaoka Nuclear Power Station in a steady manner and in an all-out manner is essential for our future growth. 
  • Chubu Electric Power is therefore making such reorganizations as establishing the Nuclear Civil Engineering Department at the Head Office and also Civil Engineering Department at the Hamaoka Nuclear Power Station, effective from April 1, with sights set on putting further focus on safety enhancement measures for Hamaoka Nuclear Power Station’s civil engineering equipment.


  • Chubu Electric Power is now at a historical turning point that can be interpreted as a re-experience of our inauguration process. 
  • Amid the circumstances, we will consistently fulfill our unchanging mission of offering safe and quality electricity on a stable and low-priced basis, while striving to create new value and achieve further development as a one-upped integrated energy service corporation that transcends boundaries existing between electricity and gas, supply areas, or Japan and abroad.

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