Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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July 29, 2009
The 1st Quarter of the Fiscal Year Ending March 31, 2010 Financial Results Overview
Kyushu Electric Power Co., Inc.
Stock code: 9508 URL: http://www.kyuden.co.jp/en_index.html
Representative: Mr. Toshio Manabe, President
Contact: Investor Relations Group, Corporate Planning Division. Tel: +81-92-726-1575
Quarterly financial report submission date (plan): August 12, 2009
Date to start dividend payments: -
(Rounded dow n to the nearest million yen)
1. Consolidated Financial Results for the Three Months (April 1, 2009 to June 30, 2009)
(1) Consolidated Operational Results (% show s the changes from the same quarter period of the previous FY)
(Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%)
April 1, 2009 - June 30, 2009 342,121 -0.4 26,822 197.2 20,003 ―
April 1, 2008 - June 30, 2008 343,456 ― 9,025 ― 1,280 ―
(Unit: million yen) (%)
April 1, 2009 - June 30, 2009 12,477 258.8 26.37
April 1, 2008 - June 30, 2008 3,477 ― 7.35
(2) Consolidated Financial Position
(Reference)
Shareholders' equity: As of June 30, 2009 : 1,059,706 million yen As of March 31, 2009: 1,054,732 million yen
2. Dividends
(Note) Revision of projected dividends: No
3. Forecasts for Consolidated Financial Results for FY2009 (April 1, 2009 to March 31, 2010)
(Note) Revision of forecasts for consolidated financial results: Yes
Net income EPS Fully-diluted EPS
(Unit: yen)
(% show s the changes from the same financial periods of the previous year)――
(Unit: yen)
Stock listed on: Tokyo SE, Osaka SE, Fukuoka SE
Sales Operating income Ordinary income
(Record date) 1Q 2Q 3Q Year-end Total
(Unit: yen) (Unit: yen) (Unit: yen) (Unit: yen) (Unit: yen)
FY2008 ― 30.00 ― 30.00 60.00
FY2009 ―
FY2009(projected) 30.00 ― 30.00 60.00
Annual dividends per share
Total assets Net assets Shareholders' equity ratio Net assets per share
(Unit: million yen) (Unit: million yen) (%) (Unit: yen)
As of June 30, 2009 4,041,460 1,076,679 26.2 2,239.67
As of March 31, 2009 4,110,877 1,072,374 25.7 2,229.13EPS(Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%) (Unit: yen)
2Q 735,000 -3.3 66,000 127.0 49,000 263.8 30,000 168.5 63.40
Full-year 1,458,000 -4.3 90,000 6.2 57,000 13.0 35,000 3.0 73.97
Net income
Sales Operating income Ordinary income
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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4. Other
(1)Changes in significant subsidiaries (changes in scope of consolidated subsidiaries) : No
(2) Adoption of simplified method or methods specific in preparing quarterly consolidated
financial statements in accounting practice : No
(3) Changes in the accounting practices, procedures, or disclosure regarding preparation of
quarterly consolidated financial statements
1 Changes in line with revised accounting standards : Yes
2 Other than 1 : No
(Note) For datails, see page 8 "Qualitative information regarding forecast for the consolidated operating performance" 4. Other.
(4) Number of common stocks issued and outstanding
1Total stocks including treasury stocks FY2009 1Q: 474,183,951 shares FY2008: 474,183,951 shares
2Treasury stocks FY2009 1Q: 1,030,114 shares FY2008: 1,024,166 shares
3Average number of shares during the period FY2009 1Q: 473,155,491 shares FY2008 1Q: 473,157,430 shares
*Notes on the proper use of the forecasts
(1) The above forecasts are based on information available at the date of the release of this document. Due to various factors,
the actual result may differ from these forecasts. For the assumptions applied to the above forecasts, see page 7.
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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(Reference) Non-consolidated Forecast for FY2009 (April 1, 2009 to March 31, 2010)
(Note) Revision of forecasts for non-consolidated financial results: Yes
(% show s the changes from the same financial periods of the previous year)EPS(Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%) (Unit: yen)
2Q 686,000 -4.0 61,500 149.4 45,000 391.8 27,000 205.0 57.03
Full-year 1,360,000 -4.9 79,000 5.6 45,000 16.1 27,000 0.3 57.03
Sales Operating income Ordinary income Net income
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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[Qualitative Information and Financial Statements]
1. Qualitative information regarding consolidated business performance
Japanese economy in this period (April-June) stayed in a fierce phase due to the global economy turndown since the
autumn of the last year. While capital investment kept drastically decreasing and the employment situation kept
deteriorated, exports and production showed rallies due to the economic stimulus and advanced inventory adjustment. .
(1) Consolidated Financial Overview
On revenue side, while electricity sales volume decreased, electricity sales revenue stayed on a par with the 1Q of
FY2008 as the electricity rates were revised in September 2008 to reflect the progress of management efficiency
improvement and the rising fuel prices. Consolidated sales (operating revenues), however, decreased by 0.4% to 342円.1
billion compared with the 1Q of FY2008 and the ordinary revenues decreased by 0.3% to 345円.1 billion mainly affected
by the decreased electricity sales to other companies.
On the expenditure side, ordinary expenses decreased by 5.7% to 325円.1 billion mainly because of the decreased cost to
purchase electricity from other companies and the decreased fuel affected by the drop of fuel prices and the decrease of
electricity sales volume in electricity business.
As a result, the ordinary income for the 1Q of FY2009 was 20円.0 billion and the net income was 12円.4 billion.
(2) Sales and Supply Overview
The demand for electric light, power for commercial operations and other general demands stayed on a par with the
1Q of FY2008 as small sized factories and stores decreased, while the diffusion of all-electric housings brought an
increase in the demand. The power demand from large industrial customers decreased by 16.6% compared with the 1Q
of the previous year due to the decrease in main industries such as electric and transportation machinery and steel
industries.
Consequently, the total electricity sales for the 1st
quarter of FY2009 decreased by 5.3% to 19.01 billion kWh.
Electricity Sales Volume
(Unit: million kWh, %)
FY2009 1Q FY2008 1Q Difference Change
(A) (B) (A-B) (A/B)
Lighting 6,496 6,398 98 101.5
Power 12,516 13,675 -1,159 91.5
Electricity Sales Total 19,012 20,073 -1,061 94.7
Customers other than
large-scale industrial
13,717 13,722 -5 100.0
(Figures are
included
above)
Large-scale industrial
customers
5,295 6,351 -1,056 83.4
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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On the supply side, mainly owing to the smooth operation of nuclear power plants, we have provided stable supply of
electricity to our customers.
Generated and Received Electricity
(Unit: million kWh, %)
FY2009 1Q FY2008 1Q Difference Change
(A) (B) (A-B) (A/B)
Hydro 681 1,213 -532 56.1
(Water flow rate) (55.2) (98.6) (-43.4)
Thermal 8,233 8,478 -245 97.1
Nuclear 9,439 8,584 855 110.0
(Utilization rate) (82.2) (74.7) (7.5)Ownfacilities
Subtotal 18,353 18,275 78 100.4
From other companies 2,352 3,594 -1,242 65.4
Interchange 8 -3 11 ―
For pumping -77 -139 62 54.7
Total 20,636 21,727 -1,091 95.0
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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2. Qualitative information regarding consolidated financial condition
(1) Consolidated assets, debt, and shareholders’ equity overview
Consolidated assets decreased by 69円.4 billion compared with the end of previous fiscal year to 4,041円.4 billion
mainly because of the decrease in fixed assets due to the progress of depreciation and the decrease in current assets such
as cash and deposit.
Consolidated debt decreased by 73円.7 billion to 2,964円.7 billion due to the payment of outstanding construction fees
recorded in the end of the previous fiscal year and the decreased interest-bearing debt. The interest-bearing debt
decreased by 22円.1 billion to 2,088円.5 billion.
Consolidated shareholders’ equity increased by 4円.3 billion to 1,076円.6 billion as the net income for this quarter has
been recorded and unrealized gain on other securities increased while the dividends were paid. Consequently the
shareholders’ equity ratio went up to 26.2%.
(2) Consolidated cash flow overview
Cash inflow from operating activities increased by 239.9% to 73円.8 billion from the 1Q of the previous year mainly
due to the decrease in fuel costs and costs to purchase electricity from other companies in electricity business.
Cash outflow from investing activities decreased by 16.7% to 64円.7 billion from the 1Q of the previous year mainly
due to the decrease in capital investments.
Cash outflow from financing activities decreased by 78円.1 billion to 36円.6 billion from the 1Q of the previous year.
As a result, the balance of cash and cash equivalents at the end of this first quarter decreased by 27円.6 billion to 60円.4
billion compared with the end of the previous fiscal year.
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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3. Qualitative information regarding forecasts for the consolidated operating performance
Consolidated and non-consolidated sales revenues are projected to increase from the previous announcement in April
2009 as the electricity sales revenue is projected to increase due to the fuel cost adjustment system while the electricity
sales volume for the quarter period is projected to decrease in electricity business.
Consolidated and non-consolidated operating income, ordinary income and net income are projected to be in a par with
the previous forecasts mainly due to increased fuel costs and cost to purchase electricity from other companies because of
soaring fuel prices while the sales revenues is projected to increase.
Consolidated and non-consolidated sales revenue, operating income, ordinary income and net income for the first two
quarters are projected to be on a par with the previous forecasts.
Consolidated Financial Forecasts for FY2009
(Unit: 100 million yen, %)
Previous Forecasts FY2008
Full-year
Difference Change Actual Results
Sales 14,580 100 0.7 15,241
Operating income 900 ― ― 847
Ordinary income 570 ― ― 504
Net income 350 ― ― 339
Non-consolidated Financial Forecasts for FY2009
(Unit: 100 million yen, %)
Previous Forecasts FY2008
Full-year
Difference Change Actual Results
Sales 13,600 100 0.7 14,301
Operating income 790 ― ― 748
Ordinary income 450 ― ― 387
Net income 270 ― ― 269
Sensitivity factors (Non-consolidated)
(Reference) FY2009 The impact of sensitivity factors on non-consolidated financial performance
FY2009 1Q-2Q FY2009 full-year
Current Previous Current Previous
Electricity sales volume 42.2 billion kWh 42.6 billion kWh 84.3 billion kWh 84.7 billion kWh
Crude oil (CIF) price 60 $/b 55 $/b 65 $/b 55 $/b
Exchange rate 99 \/$ 100 \/$ 99 \/$ 100 \/$
Nuclear power generation
capacity utilization rate
83.8% 82.4% 84.0% 83.3$
Water release rate 79.6% 100.0% 87.3% 100.0%
Full-year
Crude oil (CIF) price 1ドル/b \ 1.4 billion
Exchange rate 1円/$ \ 1.9 billion
Nuclear power generation
capacity utilization rate 1%
\ 2.2billion
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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4. Other(1) Changes in significant subsidiaries (changes in scope of consolidated subsidiaries)N/A(2)
Adoption of simplified methods or methods specific in preparing quarterly consolidated financial
statements in accounting practicesN/A(3)
Any changes in accounting practices, procedures, or disclosure regarding preparation of quarterly
consolidated financial statements
Changes in standards to record construction revenue and cost of completed construction work
As the Accounting Standards on Construction Contracts (Accounting Standards Board of Japan Statement
No.15, Dec. 27, 2007) and the Guideline to Apply the Accounting Standards on Construction Contracts
(Guideline to Apply the Accounting Standards Board of Japan Statement No.18, Dec. 27, 2007) have been
adopted since this first quarter of consolidated fiscal year, Kyushu Electric Power has revised the standards to
record revenues on contract work. As a result, for the construction contracts launched during this first quarter, the
percentage of completion basis method with cost proportion method to estimate the progress of constriction is
applied for the construction works with assured progress as of the end of this first quarter, and the completed
work basis method is applied for other construction works.
This change gives minor effect on the Company’s sales (operating revenue), profit and loss.
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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5. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
As of June 30th, 2009
Assets
Fixed Assets 3,761,371 3,785,418
Utility property, plant and equipment 2,536,713 2,547,312
Hydro 321,967 326,212
Thermal 259,492 267,214
Nuclear 252,461 257,522
Internal combustion 23,682 24,255
Transmission 675,617 671,145
Transformation 255,665 249,756
Distribution 614,307 616,215
General 124,344 125,648
Other 9,175 9,341
Other fixed assets 317,679 320,964
Construction in progress 209,309 212,169
Construction and retirement in progress 209,309 212,169
Nuclear fuel 268,104 264,205
Loaded nuclear fuel 46,850 40,816
Nuclear fuel in processing 221,253 223,388
Investments and other assets 429,564 440,766
Long-term investments 104,812 101,000
Reserve for reprocessing of irradiated nuclear fuel 127,795 136,011
Deferred tax assets 115,197 117,743
Other assets 82,691 86,931
Allowance for doubtful accounts -933 -921
Current Assets 280,089 325,459
Cash and cash equivalent 60,922 88,359
Trade notes and accounts receivable 100,062 112,214
Inventories at average cost 74,729 76,481
Deferred tax assets 14,221 16,284
Other current assets 31,481 33,405
Allowance for doubtful accounts -1,328 -1,286
Assets Total 4,041,460 4,110,877
(Unit: million yen)
As of March 31st, 2009
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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As of June 30th, 2009
Liabilities
Long-term Liabilities 2,494,166 2,506,368
Bonds 1,241,451 1,221,451
Long-term loans 549,588 587,088
Accrued retirement benefits 138,397 137,683
Reserve for reprocessing of irradiated nuclear fuel 352,165 351,832
Reserve for preparation of reprocessing of irradiated nuclear fuel 15,486 14,604
Reserve for decommissioning of nuclear power plant 157,629 155,838
Deferred tax liabilities 11 7
Other fixed liabilities 39,435 37,862
Current Liabilities 470,614 532,133
Current portion of long-term debt 147,722 170,822
Short-term borrowings 122,630 133,645
Notes and accounts payable 36,710 46,475
Income tax payable 18,460 21,111
Other current liabilities 145,090 160,079
Liabilities Total 2,964,781 3,038,502
Net Assets
Shareholders’ Equity 1,039,844 1,041,582
Common stock 237,304 237,304
Additional paid-in capital 31,144 31,146
Retained earnings 773,404 775,130
Treasury stock -2,010 -1,999
Valuation and translation adjustments 19,862 13,150
Unrealized gain on other securities 19,233 13,099
Gain on deferred hedge 1,595 1,392
Foreign currency translation adjustments -966 -1,341
Minority Interests 16,972 17,642
Net Assets Total 1,076,679 1,072,374
Liabilities and Net Assets Total 4,041,460 4,110,877
(Unit: million yen)
As of March 31st, 2009
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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(2) Quarterly Consolidated Income Statements for the 1st
quarter of FY2009 April 1, 2008-June 30, 2008 April 1, 2009-June 30, 2009
Operating Revenues 343,456 342,121
Electricity 314,981 313,172
Other 28,475 28,949
Operating Expenses 334,430 315,299
Electricity 305,835 288,250
Other 28,595 27,048
Operating Income 9,025 26,822
Other Revenues 2,588 3,040
Proceed from dividends 1,092 1,356
Proceed from interests 550 634
Equity in earnings of affiliates - 101
Other 945 946
Other Expenses 10,333 9,859
Interest expenses 8,718 8,930
Loss on affiliates 83 -
Other 1,531 929
Total Ordinary Revenues 346,044 345,161
Total Ordinary Expenses 344,764 325,158
Ordinary Income 1,280 20,003
Extraordinary Gain 5,400 -
Gain on sale of marketable securities 5,400 -
Income before Income Taxes 6,680 20,003
Income Taxes 416 6,362
Income Taxes-Deferred 2,694 1,130
Income Taxes Total 3,111 7,493
Minority Interests 91 32
Net Income 3,477 12,477
(Unit: million yen)
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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(3) Consolidated Statements of Changes in Shareholders’ Equity
April 1, 2008-
June 30, 2008
April 1, 2009-
June 30, 2009
Operating Activities
Income before income taxes and minority interests 6,680 20,003
Depreciation and amortization 57,628 58,818
Amortization of nuclear fuel 4,406 5,371
Loss on disposal of property, plant and equipment 1,558 1,515
Increase(decrease) in liability for retirement benefits -4,490 713
Provision for reserve for reprocessing of used fuel -402 333
Provision for preparation for reprocessing of irradiated nuclear fuel 719 881
Provision for reserve for decommissioning of nuclear power plants 1,620 1,790
Interest revenue and dividends received -1,642 -1,991
Interest expense 8,718 8,930
Loss on equity under the equity method 83 -101
Loss on sale of marketable securities -5,400 ‐
Decrease in fund for reprocessing of irradiated nuclear fuel 7,637 8,216
Decrease in accounts receivable 11,170 12,712
Decrease in inventories, principally fuel, at average cost -19,173 1,751
Increase in accounts payable -6,177 -8,888
Other -26,187 -22,444
Sub Total 36,750 87,612
Receipt of interest and cash dividends 1,657 2,320
Interest paid -12,421 -12,705
Income tax paid -4,267 -3,408
Net cash provided by operating activities 21,720 73,819
Cash Flows from Investing Activities
Purchases of property, plant and equipment -78,125 -71,141
Payment for investments and other -1,675 -1,288
Proceeds for recoveries from investments and other 967 5,763
Other 1,152 1,940
Net cash used in investing activities -77,682 -64,726
(Unit: million yen)
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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April 1, 2008-
June 30, 2008
April 1, 2009-
June 30, 2009
Cash Flows from Financing Activities
Proceeds from issuance of bonds 59,818 19,935
Redemption of bonds -40,000 -40,000
Proceeds from long-term loans 15,940 10,300
Repayment of long-term loans -19,373 -31,378
Net increase (decrease) in short-term borrowings -500 -11,014
Net increase in commercial paper 39,000 30,000
Cash dividends paid -13,379 -14,224
Other -58 -305
Net cash used in financing activities 41,447 -36,687
Effect of exchange rate changes on cash and cash equivalents 28 -42
Changes in cash and cash equivalents -14,486 -27,636
Cash and cash equivalents at beginning of the fiscal year 58,766 88,124
Increase in cash and cash equivalent due to the merger of consolidated subsidiaries 46 -
Cash and cash equivalents at end the of the 1Q 44,326 60,487
(Unit: million yen)
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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(4) Notes on the premise of going concernN/A(5) Notes in case of drastic changes in the amount of EquityN/AKyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 1Q
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6. Other Information
Income and Expenditure (Non-consolidated)
(Unit: 100 million yen, %)
FY2009 1Q FY2008 1Q Difference Change Composition Ratio
(A) (B) (A-B) (A/B) FY2009 1Q FY2008 1Q
Lighting 1,308 1,261 47 103.7 40.6 38.8
Power 1,785 1,827 -41 97.7 55.5 56.3
(Subtotal) (3,094) (3,089) (5) (100.2) (96.1) (95.1)
Electricity Sales 10 32 -21 33.1 0.3 1.0
Other 114 125 -10 91.4 3.6 3.9
[Sales] [3,195] [3,223] [-27] [99.1] [99.2] [99.3]
Ordinary
Revenues
Total 3,219 3,247 -27 99.2 100.0 100.0
Labor 421 332 88 126.6 13.8 10.3
Fuel 510 740 -229 69.0 16.8 22.8
Maintenance 470 419 50 112.1 15.4 13.0
Depreciation 495 490 4 101.0 16.3 15.1
Power purchase 251 360 -109 69.7 8.3 11.1
Interest 83 81 2 102.8 2.7 2.5
Tax & public dues 228 239 -11 95.3 7.5 7.4
Nuclear back-end 124 113 11 110.0 4.1 3.5
Other 460 463 -3 99.3 15.1 14.3
Ordinary
Expenses
Total 3,045 3,240 -195 94.0 100.0 100.0
[Operating Income] [244] [78] [165] [311.4]
Ordinary Income 174 6 167 −
Extraordinary Gain − 54 -54 −
Income before income taxes 174 60 113 288.3
Income taxes 65 23 42 280.6
Net Income 108 37 71 293.1
(Note) Nuclear back-end expenses include the costs below:
-Costs for reprocessing of irradiated nuclear fuel
-Costs for preparation of reprocessing of irradiated nuclear fuel
-Costs for disposal of transuranic waste
-Costs for decommissioning nuclear power plants
(Reference)
FY2009 1Q FY2008 1Q Difference
[A] [B] [A-B]
Crude oil (CIF) price 52.5 $/b 109.9 $/b -57.4$/b
Exchange rate 97.4 \/$ 104.6 \/$ -7.2 \/$