Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 2Q
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October 28, 2009
The 2nd 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.htm
Representative: Mr. Toshio Manabe, President
Contact: Investor Relations Group, Strategy Planning Dept., Corporate Planning Division. Tel: +81-92-726-1575
Quarterly financial report submission date (plan): November 12, 2009
Date to start dividend payments: November 30, 2009
(Rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months (April 1, 2009 to September 30, 2009)
(1) Consolidated Operational Results (% shows the changes from the same quarter period of the previous FY)
(Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%)
April 1, 2009 - September 30, 2009 726,441 -4.4 82,569 183.9 67,505 401.2
April 1, 2008 - September 30, 2008 759,824 ― 29,081 ― 13,468 ―
(Unit: million yen) (%)
April 1, 2009 - September 30, 2009 42,668 281.9 90.18
April 1, 2008 - September 30, 2008 11,173 ― 23.62
(2) Consolidated Financial Position
(Reference)
Shareholders' equity: As of September 30, 2009 : 1,084,074 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)
(% shows 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 ― 30.00
FY2009(projected) ― 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 September 30, 2009 4,087,885 1,101,032 26.5 2,291.24
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)
Full-year 1,448,000 -5.0 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 2Q
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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 2Q: 474,183,951 shares FY2008: 474,183,951 shares
2Treasury stocks FY2009 2Q: 1,045,604 shares FY2008: 1,024,166 shares
3Average number of shares during the period FY2009 2Q: 473,148,255 shares FY2008 2Q: 473,151,165 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 2Q
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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
(% shows 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)
Full-year 1,350,000 -5.6 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 2Q
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[Qualitative Information and Financial Statements]
1. Qualitative information regarding consolidated business performance
Japanese economy in this period (April-September) stayed in a fierce phase due to the global economy turndown.
While corporate profits kept declining, capital investment kept decreasing and the employment situation kept
deteriorated, through the end of the first half of the fiscal year the economic conditions partly showed rallies due to the
economic stimulus and improvement of overseas economic environment.
(1) Consolidated Financial Overview
On revenue side, consolidated sales (operating revenues) decreased by 4.4% to 726円.4 billion compared with the 2Q of
FY2008 and the ordinary revenues decreased by 4.3% to 731円.5 billion mainly affected by the electricity sales revenue
decreased due to a decrease in sales volume.
On the expenditure side, ordinary expenses decreased by 11.6% to 664円.0 billion mainly because of the decreased fuel
costs 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 2Q of FY2009 increased to 67円.5 billion compared with the 2Q of FY2008 and
the net income was 42円.6 billion.
(2) Sales and Supply Overview
The demand for electric light, power for commercial operations and other general demands decreased by 2.0%
compared with the 2Q of the previous year due to a decrease in the air-conditioning demand as the temperature in July
has shifted lower than the previous year’s level and the decreased sales in commercial demand for small-scale factories
and stores. The power demand from large industrial customers decreased by 14.5% compared with the 2Q 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 2nd
quarter of FY2009 decreased by 5.7% to 41.73 billion kWh.
Electricity Sales Volume
(Unit: million kWh, %)
FY2009 2Q FY2008 2Q Difference Change
(A) (B) (A-B) (A/B)
Lighting 13,863 13,992 -129 99.1
Power 27,876 30,281 -2,405 92.1
Electricity Sales Total 41,739 44,273 -2,534 94.3
(Figures are
included
above)
Customers other than
large-scale industrial
30,499 31,128 -629 98.0
Large-scale industrial
customers
11,240 13,145 -1,905 85.5
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 2Q
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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 2Q FY2008 2Q Difference Change
(A) (B) (A-B) (A/B)Ownfacilities
Hydro 1,809 2,722 -913 66.4
(Water flow rate) (63.8) (92.0) (-28.2)
Thermal 18,000 18,909 -909 95.2
Nuclear 19,678 18,718 960 105.1
(Utilization rate) (85.2) (81.1) (4.1)
Subtotal 39,487 40,349 -862 97.9
From other companies 6,473 8,887 -2,414 72.8
Interchange 7 -4 11 ―
For pumping -345 -657 312 52.5
Total 45,622 48,575 -2,953 93.9
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 2Q
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2. Qualitative information regarding consolidated financial condition
(1) Consolidated assets, debt, and shareholders’ equity overview
Consolidated assets decreased by 22円.9 billion compared with the end of the previous fiscal year to 4,087円.8 billion
mainly because of the decrease in fixed assets due to the progress of depreciation.
Consolidated debt decreased by 51円.6 billion to 2,986円.8 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 35円.5 billion to 2,075円.1 billion.
Consolidated shareholders’ equity increased by 28円.6 billion to 1,101円.0 billion as the net income for this quarter has
been recorded while the dividends were paid. Consequently the shareholders’ equity ratio went up to 26.5%.
(2) Consolidated cash flow overview
Cash inflow from operating activities increased by 109円.6 billion to 190円.2 billion from the 2Q of the previous year
mainly due to the decrease in fuel costs while the electricity sales revenue decreased in electricity business.
Cash outflow from investing activities decreased by 18円.6 billion to 121円.5 billion from the 2Q of the previous year
mainly due to the decrease in capital investments.
Cash outflow from financing activities was 50円.4 billion. (Cash inflow for the 2Q of the previous year was 56円.4
billion.)
As a result, the balance of cash and cash equivalents at the end of this second quarter increased by 18円.1 billion to
106円.2 billion compared with the end of the previous fiscal year.
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 2Q
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3. Qualitative information regarding forecasts for the consolidated operating performance
Electricity sales volume is projected to decrease by 0.6 billion kWh to 83.7 billion kWh from the previous
announcement in July 2009 mainly due to the decreased production in main industries such as electric and transportation
machinery and steel industries.
Consolidated and non-consolidated sales revenues are projected to decrease from the previous announcement as the
electricity sales volume 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 decreased fuel costs because of a strong yen in currency exchange rate while the sales
revenues are projected to decrease.
Consolidated Financial Forecasts for FY2009
(Unit: 100 million yen, %)
Full-year
Previous Forecasts FY2008
Difference Change Actual Results
Sales 14,480 -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, %)
Full-year
Previous Forecasts FY2008
Difference Change Actual Results
Sales 13,500 -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 full-year
Current Previous
Electricity sales volume 83.7 billion kWh 84.3 billion kWh
Crude oil (CIF) price 66 $/b 65 $/b
Exchange rate 95 \/$ 99 \/$
Nuclear power generation
capacity utilization rate
84.6% 84.0%
Water release rate 77.4% 87.3%
Full-year
Crude oil (CIF) price 1ドル/b \ 1.3 billion
Exchange rate 1円/$ \ 1.9 billion
Nuclear power generation
capacity utilization rate 1%
\ 2.1billion
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 2Q
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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 second 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 2Q
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5. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
Assets
Fixed Assets 3,746,377 3,785,418
Utility property, plant and equipment 2,503,997 2,547,312
Hydro 317,319 326,212
Thermal 252,096 267,214
Nuclear 245,675 257,522
Internal combustion 23,061 24,255
Transmission 667,948 671,145
Transformation 251,253 249,756
Distribution 613,658 616,215
General 123,968 125,648
Other 9,016 9,341
Other fixed assets 312,414 320,964
Construction in progress 222,475 212,169
Construction and retirement in progress 222,475 212,169
Nuclear fuel 267,825 264,205
Loaded nuclear fuel 41,354 40,816
Nuclear fuel in processing 226,470 223,388
Investments and other assets 439,664 440,766
Long-term investments 102,190 101,000
Reserve for reprocessing of irradiated nuclear fuel 136,278 136,011
Deferred tax assets 118,126 117,743
Other assets 84,021 86,931
Allowance for doubtful accounts -952 -921
Current Assets 341,507 325,459
Cash and cash equivalent 82,335 88,359
Trade notes and accounts receivable 116,222 112,214
Inventories at average cost 72,290 76,481
Deferred tax assets 17,169 16,284
Other current assets 54,531 33,405
Allowance for doubtful accounts -1,041 -1,286
Assets Total 4,087,885 4,110,877
(Unit: million yen)
As of March 31st, 2009
As of September 30th, 2009
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 2Q
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Liabilities
Long-term Liabilities 2,515,466 2,506,368
Bonds 1,261,452 1,221,451
Long-term loans 546,206 587,088
Accrued retirement benefits 137,965 137,683
Reserve for reprocessing of irradiated nuclear fuel 352,192 351,832
Reserve for preparation of reprocessing of irradiated nuclear fuel 16,472 14,604
Reserve for decommissioning of nuclear power plant 159,589 155,838
Deferred tax liabilities 16 7
Other fixed liabilities 41,571 37,862
Current Liabilities 471,386 532,133
Current portion of long-term debt 147,287 170,822
Short-term borrowings 122,991 133,645
Notes and accounts payable 42,731 46,475
Income tax payable 46,893 21,111
Other current liabilities 111,481 160,079
Liabilities Total 2,986,853 3,038,502
Net Assets
Shareholders’ Equity 1,070,003 1,041,582
Common stock 237,304 237,304
Additional paid-in capital 31,144 31,146
Retained earnings 803,595 775,130
Treasury stock -2,041 -1,999
Valuation and translation adjustments 14,071 13,150
Unrealized gain on other securities 15,116 13,099
Gain on deferred hedge 45 1,392
Foreign currency translation adjustments -1,091 -1,341
Minority Interests 16,957 17,642
Net Assets Total 1,101,032 1,072,374
Liabilities and Net Assets Total 4,087,885 4,110,877
As of September 30th, 2009 As of March 31st, 2009
(Unit: million yen)
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 2Q
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(2) Quarterly Consolidated Income Statements for the 2nd
quarter of FY2009 April 1, 2008-September 30, 2008 April 1, 2009-September 30, 2009
Operating Revenues 759,824 726,441
Electricity 699,130 667,416
Other 60,694 59,025
Operating Expenses 730,743 643,872
Electricity 672,300 589,138
Other 58,442 54,733
Operating Income 29,081 82,569
Other Revenues 4,659 5,068
Proceed from dividends 1,153 1,388
Proceed from interests 1,225 1,292
Equity in earnings of affiliates 466 535
Other 1,814 1,851
Other Expenses 20,271 20,132
Interest expenses 17,637 17,857
Other 2,634 2,275
Total Ordinary Revenues 764,484 731,510
Total Ordinary Expenses 751,015 664,004
Ordinary Income 13,468 67,505
Extraordinary Gain 5,400 -
Gain on sale of marketable securities 5,400 -
Income before Income Taxes 18,868 67,505
Income Taxes 2,942 26,415
Income Taxes-Deferred 4,481 -1,594
Income Taxes Total 7,423 24,821
Minority Interests 270 16
Net Income 11,173 42,668
(Unit: million yen)
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 2Q
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(3) Consolidated Statements of Changes in Shareholders’ Equity
April 1, 2008-
September 30,
April 1, 2009-
September 30,
Operating Activities
Income before income taxes and minority interests 18,868 67,505
Depreciation and amortization 115,163 117,497
Amortization of nuclear fuel 10,146 10,867
Loss on disposal of property, plant and equipment 3,181 2,870
Increase(decrease) in liability for retirement benefits -11,670 281
Provision for reserve for reprocessing of used fuel 2,773 359
Provision for preparation for reprocessing of irradiated nuclear fuel 1,767 1,867
Provision for reserve for decommissioning of nuclear power plants 3,497 3,750
Interest revenue and dividends received -2,378 -2,681
Interest expense 17,637 17,857
Loss on equity under the equity method -466 -535
Loss on sale of marketable securities -5,400 ‐
Decrease in fund for reprocessing of irradiated nuclear fuel -374 -267
Decrease in accounts receivable -8,052 -3,549
Decrease in inventories, principally fuel, at average cost -15,214 4,190
Increase in accounts payable -16,191 -3,129
Other -12,575 -8,875
Sub Total 100,711 208,010
Receipt of interest and cash dividends 2,444 3,036
Interest paid -17,420 -17,732
Income tax paid -5,216 -3,101
Net cash provided by operating activities 80,518 190,212
Cash Flows from Investing Activities
Purchases of property, plant and equipment -132,705 -120,513
Payment for investments and other -18,199 -10,503
Proceeds for recoveries from investments and other 7,982 6,793
Other 2,733 2,715
Net cash used in investing activities -140,189 -121,507
(Unit: million yen)
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 2Q
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April 1, 2008-
September 30,
April 1, 2009-
September 30,
Cash Flows from Financing Activities
Proceeds from issuance of bonds 89,725 39,868
Redemption of bonds -70,000 -40,000
Proceeds from long-term loans 45,987 13,230
Repayment of long-term loans -26,463 -38,101
Net increase (decrease) in short-term borrowings 5,202 -10,653
Net increase in commercial paper 26,000 ‐
Cash dividends paid -14,179 -14,224
Other 178 -580
Net cash used in financing activities 56,450 -50,461
Effect of exchange rate changes on cash and cash equivalents 12 -117
Changes in cash and cash equivalents -3,207 18,126
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 55,605 106,251
(Unit: million yen)
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2009 2Q
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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 2Q
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6. Other Information
Income and Expenditure (Non-consolidated)
(Unit: 100 million yen, %)
FY2009 2Q FY2008 2Q Difference Change Composition Ratio
(A) (B) (A-B) (A/B) FY2009 2Q FY2008 2Q
Ordinary
Revenues
Lighting 2,777 2,814 -37 98.7 40.6 39.2
Power 3,821 4,076 -255 93.7 55.8 56.8
(Subtotal) (6,598) (6,891) (-292) (95.8) (96.4) (96.0)
Other 244 289 -45 84.2 3.6 4.0
[Sales] [6,804] [7,145] [-340] [95.2] [99.4] [99.5]
Total 6,842 7,181 -338 95.3 100.0 100.0
Ordinary
Expenses
Labor 866 692 174 125.3 13.9 9.7
Fuel 1,064 1,798 -734 59.2 17.1 25.4
Maintenance 909 886 23 102.6 14.6 12.5
Depreciation 987 977 10 101.0 15.9 13.8
Power purchase 562 815 -252 69.0 9.1 11.5
Interest 167 164 2 101.7 2.7 2.3
Tax & public dues 481 497 -16 96.7 7.7 7.0
Nuclear back-end 249 266 -17 93.5 4.0 3.8
Other 929 989 -60 93.9 15.0 14.0
Total 6,219 7,089 -869 87.7 100.0 100.0
[Operating Income] [777] [246] [530] [315.3]
Ordinary Income 622 91 531 680.8
Extraordinary Gain − 54 -54 −
Income before income taxes 622 145 477 428.1
Income taxes 235 56 178 412.8
Net Income 387 88 299 438.0
(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 2Q FY2008 2Q Difference
[A] [B] [A-B]
Crude oil (CIF) price 61.8 $/b 119.7$/b -57.9$/b
Exchange rate 95.5 \/$ 106.1 \/$ -10.6 \/$