Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
January 31, 2011
The 3rd Quarter of the Fiscal Year Ending March 31, 2011 Financial Results Overview 〔Japan GAAP〕(Consolidated)
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, Strategy Planning Dept., Corporate Planning Division. Tel: +81-92-726-1575
Quarterly financial report submission date (plan): February 10, 2011
Date to start dividend payments: -
Preparation of supplementary materials for quarterly financial results: Yes
Information meeting for quarterly financial results: No
(Rounded dow n to the nearest million yen)
1. Consolidated Financial Results for the Nine Months (April 1, 2010 to December 31, 2010)
(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, 2010 - December 31, 2010 1,081,639 2.0 97,015 -1.7 69,737 -9.7
April 1, 2009 - December 31, 2009 1,060,369 -4.9 98,705 122.3 77,238 263.7
(Unit: million yen) (%)
April 1, 2010 - December 31, 2010 29,504 -39.7 62.37
April 1, 2009 - December 31, 2009 48,951 216.5 103.46
(2) Consolidated Financial Position
(Reference)
Shareholders' equity: As of December 31, 2010 : 1,065,814 million yen As of March 31, 2010: 1,071,792 million yen
2. Dividends
(Note) Revision of projected dividends: No
3. Forecasts for Consolidated Financial Results for FY2010 (April 1, 2010 to March 31, 2011)
(Note) Revision of forecasts for consolidated financial results: No―(Unit: yen)
(% show s the changes from the same financial periods of the previous year)―Stock listed on: Tokyo SE, Osaka SE, Fukuoka SE
Sales Operating income Ordinary income
Net income EPS Fully-diluted EPS
(Unit: yen)
(Record date) 1Q 2Q 3Q Year-end Total
(Unit: yen) (Unit: yen) (Unit: yen) (Unit: yen) (Unit: yen)
FY2009 ― 30.00 ― 30.00 60.00
FY2010 ― 30.00 ―
FY2010(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 December 31, 2010 4,118,966 1,082,850 25.9 2,253.28
As of March 31, 2010 4,054,192 1,089,066 26.4 2,265.59EPS(Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%) (Unit: yen)
Full-year 1,471,000 1.8 96,000 -3.7 62,000 -8.3 24,000 -42.6 50.73
Net income
Sales Operating income Ordinary income
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
4. Other (For details, see page 5 "Other Information" of attached material.)
(1) Changes in significant subsidiaries during the period : No
(Note) Changes in scope of consolidated subsidiaries during the period
(2) Adoption of simplified methods or specific methods : No
(Note) Adoption of simplified methods or methods specific in preparing quarterly consolidated financial statements
in accounting practice
(3) Changes in the accounting principles, procedures and disclosure
1 Changes in line with revised accounting standards : Yes
2 Other than 1 : No
(Note) Changes in the accounting principles, procedures and disclosure regarding preparation of quarterly consolidated financial
statements, written in "Changes in significant items regarding preparation of quarterly consolidated financial statements"
(4) Number of common stocks issued and outstanding
1 Total stocks including treasury stocks FY2010 3Q: 474,183,951 shares FY2009: 474,183,951 shares
2 Treasury stocks FY2010 3Q: 1,177,205 shares FY2009: 1,110,624 shares
3 Average number of shares during the period FY2010 3Q: 473,055,079 shares FY2009 3Q: 473,140,023 shares
*Notes on implementation status of quarterly review procedure
This financial results overview is not the object of quarterly review procedure based on Financial Instruments and Exchange Act,
and at the time of this disclosure, review procedure of quarterly consolidated financial reports based on Financial Instruments and Exchange Act has not been completed.
*Notes on the proper use of the forecasts
The 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.
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
(Reference) Non-consolidated Forecast for FY2010 (April 1, 2010 to March 31, 2011)
(Note) Revision of forecasts for non-consolidated financial results: No
(% 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)
Full-year 1,376,000 2.7 85,000 0.1 52,000 3.3 18,000 -36.4 38.03
Sales Operating income Ordinary income Net income
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
- 1 -
○しろまる Table of Contents of Attached Material
1. Qualitative Information regarding Quarterly Financial Results ・・・・・・・・・・・・・ 2
(1) Qualitative information regarding consolidated business performance ・・・・・・・・・ 2
(2) Qualitative information regarding consolidated financial condition ・・・・・・・・・・ 4
(3) Qualitative information regarding forecasts for the consolidated operating performance ・・ 4
2. Other Information ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5
(1) Changes in significant subsidiaries ・・・・・・・・・・・・・・・・・・・・・・・ 5
(2) Adoption of simplified methods or methods specific in preparing quarterly consolidated financial
statements in accounting practices ・・・・・・・・・・・・・・・・・・・・・・・ 5
(3) Changes in accounting principles, procedures or disclosure regarding preparation of quarterly
consolidated financial statements ・・・・・・・・・・・・・・・・・・・・・・・ 5
3. Quarterly Consolidated Financial Statements・・・・・・・・・・・・・・・・・・・・・ 6
(1) Quarterly Consolidated Balance Sheets ・・・・・・・・・・・・・・・・・・・・・ 6
(2) Quarterly Consolidated Income Statements ・・・・・・・・・・・・・・・・・・・・ 8
(3) Quarterly Consolidated Statements of Cash Flows ・・・・・・・・・・・・・・・・・ 9
(4) Notes on the premise of going concern ・・・・・・・・・・・・・・・・・・・・・ 11
(5) Notes in case of drastic changes in the amount of Equity ・・・・・・・・・・・・・・ 11
4. Supplementary Information ・・・・・・・・・・・・・・・・・・・・・・・・・・・ 12
Income and Expenditure (Non-consolidated)・・・・・・・・・・・・・・・・・・・・ 12
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
- 2 -
1. Qualitative Information regarding Quarterly Financial Results
(1) Qualitative information regarding consolidated business performance
The Japanese economy in this period (April to December 2010) marked time toward the end of the year mainly due to
slowdown of export and production and rebound effect of economic measures in addition to the difficult employment
market, although gradual recovery continued as corporate earnings improved on the back of increases in export and
production, and capital expenditures turned to recovery.
1 Revenue and Expenditure
On the revenue side, consolidated sales (operating revenues) increased by 2.0% to 1,081円.6 billion compared with the
3Q of FY2009 and the ordinary revenues increased by 1.9% to 1,088円.9 billion affected by the business performances in
electricity business as electricity sales volume increased while charge unit price decreased mainly due to the effect of
fuel cost adjustment system.
On the expenditure side, ordinary expenses increased by 2.8% to 1,019円.1 billion affected by the business
performances in electricity business as fuel costs increased mainly due to the increase of electricity sales volume and the
rise of fuel prices while maintenance cost decreased.
As a result, the ordinary income for the 3Q of FY2010 decreased by 9.7% to 69円.7 billion compared with the 3Q of
FY2009.
The net income decreased by 39.7% to 29円.5 billion due to the recording of an extraordinary loss of 18円.4 billion
with the application of "Accounting Standards for Asset Retirement Obligations".
2 Sales and Supply Overview
The demand for electric light, power for commercial operations and other general demands increased by 3.6%
compared with the 3Q of the previous year mainly due to an increase in the air-conditioning demand as the temperature
in this summer was higher than the previous year’s level. The power demand from large industrial customers increased
by 6.6% compared with the 3Q of the previous year due to an increase in production of Steel and Iron and Chemicals
and Non-ferrous metals.
Consequently, the total electricity sales for the 3Q of FY2010 increased by 4.5% to 64.24 billion kWh.
Electricity Sales Volume
(Unit: million kWh, %)
FY2010 3Q FY2009 3Q Difference Change
(A) (B) (A-B) (A/B)
Lighting 21,696 20,484 1,212 105.9
Power 42,548 41,021 1,527 103.7
Electricity Sales Total 64,244 61,505 2,739 104.5
(Figures are
included
above)
Customers other than
large-scale industrial
46,227 44,600 1,627 103.6
Large-scale industrial
customers
18,017 16,905 1,112 106.6
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
- 3 -
On the supply side, owing to the overall operation of power-generating facilities including nuclear power plants, we
have provided stable supply of electricity to our customers.
Generated and Received Electricity
(Unit: million kWh, %)
(Note) "New Energy" includes Solar, Wind, Biomass, Waste and Geothermal.
FY2010 3Q FY2009 3Q Difference Change
(A) (B) (A-B) (A/B)Ownfacilities
Hydro 3,581 2,390 1,191 149.9
(Water flow rate) (96.0) (67.5) (28.5)
Thermal 26,371 25,509 862 103.4
Nuclear 29,087 29,381 -294 99.0
(Utilization rate) (83.8) (84.7) (-0.9)
New Energy 1,073 1,090 -17 98.4
Subtotal 60,112 58,370 1,742 103.0
From other companies
(New Energy [included above])
11,133
(1,088)
10,015
(932)
1,118
(156)
111.2
(116.9)
Interchange 1 6 -5 7.3
For pumping -687 -390 -297 176.1
Total 70,559 68,001 2,558 103.8
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
- 4 -
(2) Qualitative information regarding consolidated financial condition
1 Consolidated assets, debt, and shareholders’ equity overview
Consolidated assets increased by 64円.7 billion compared with the end of the previous fiscal year to 4,118円.9 billion
mainly because of the increase in fixed assets due to the increase in long-term investments and because of the increase in
current assets such as trade notes and accounts receivable and cash and cash equivalent while depreciation progressed.
Consolidated liabilities increased by 70円.9 billion to 3,036円.1 billion in spite of the payment of construction costs
accrued to the end of the previous period due to an increase in interest-bearing debts and the inclusion of asset
retirement obligations. The interest-bearing debts increased by 81円.4 billion to 2,086円.2 billion.
Consolidated shareholders’ equity decreased by 6円.2 billion to 1,082円.8 billion mainly as the dividends were paid and
unrealized gain on other securities decreased while the net income for this quarter has been recorded. Consequently the
shareholders’ equity ratio went down to 25.9%.
2 Consolidated cash flow overview
Cash inflow from operating activities decreased by 55円.2 billion to 203円.4 billion from the 3Q of the previous year
mainly due to an increase in fuel costs and costs to purchase electricity from other companies in electricity business.
Cash outflow from investing activities increased by 76円.4 billion to 245円.2 billion from the 3Q of the previous year
mainly due to an increase in capital investments and an increase in payments for purchases of marketable securities.
Cash inflow from financing activities was 50円.3 billion. (Cash outflow for the 3Q of the previous year was 106円.4
billion.)
As a result, the balance of cash and cash equivalents at the end of this third quarter increased by 8円.5 billion to 76円.7
billion compared with the end of the previous fiscal year.
(3) Qualitative information regarding forecasts for the consolidated operating performance
There is no change about financial forecasts for FY2010 from the numbers announced in October 2010.
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
- 5 -
2. Other Information
(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) Changes in accounting principles, procedures or disclosure regarding preparation of quarterly
consolidated financial statements
1 Application of the accounting standards for asset retirement obligations
The Company applied the Accounting Standards for Asset Retirement Obligations (ASBJ Statement No. 18; March
31, 2008) and the Guidance on Accounting Standards for Asset Retirement Obligations (ASBJ Guidance No. 21;
March 31, 2008) starting in the first quarter of the current consolidated fiscal year. The Ministerial Ordinance on
Reserve for Decommissioning of Nuclear Power Plants (Ordinance of the Ministry of Economy, Trade and
Industry) was revised in conjunction with the application of the above standards and guidance.
As a result, operating income and ordinary income decreased by 628円 million each, and the income before income
taxes and minority interests decreased by 19円.057 billion. The amount recorded as the asset retirement obligation as
the result of application of these accounting standards and guidance was 207円.253 billion (of which 164円.931
billion was transferred from the reserve for the decommissioning of nuclear power plants).
2 Application of the accounting standards for business combinations
The Company applied the Accounting Standard for Business Combinations (ASBJ Statement No. 21; December 26,
2008), the Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22; December 26,
2008), the Partial Amendments to Accounting Standard for Research and Development Costs (ASBJ Statement No.
23; December 26, 2008), the Revised Accounting Standard for Business Divestitures (ASBJ Statement No. 7;
December 26, 2008), the Revised Accounting Standard for Equity Method of Accounting for Investments (ASBJ
Statement No. 16; December 26, 2008) and the Revised Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures (ASBJ Guidance No. 10; December 26, 2008)
starting in the first quarter of the current consolidated fiscal year.
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
- 6 -
3. Quarterly Consolidated Financial Statements
(1) Quarterly Consolidated Balance Sheets
Assets
Fixed Assets 3,818,784 3,776,231
Utility property, plant and equipment 2,480,943 2,479,444
Hydro 330,365 311,589
Thermal 220,746 233,364
Nuclear 260,525 239,258
Internal combustion 20,656 22,304
New energy power production facilities 16,287 14,561
Transmission 645,051 659,753
Transformation 239,464 247,041
Distribution 615,370 615,752
General 125,137 128,195
Other 7,338 7,623
Other fixed assets 298,313 310,531
Construction in progress 241,073 247,077
Construction and retirement in progress 241,073 247,077
Nuclear fuel 264,716 269,663
Loaded nuclear fuel 57,269 57,433
Nuclear fuel in processing 207,447 212,230
Investments and other assets 533,736 469,513
Long-term investments 131,322 104,473
Reserve for reprocessing of irradiated nuclear fuel 174,706 167,769
Deferred tax assets 128,792 119,708
Other assets 99,970 78,615
Allowance for doubtful accounts -1,055 -1,054
Current Assets 300,182 277,961
Cash and cash equivalent 78,440 69,813
Trade notes and accounts receivable 108,285 96,033
Inventories at average cost 69,286 63,845
Deferred tax assets 14,758 16,567
Other current assets 30,382 32,780
Allowance for doubtful accounts -971 -1,079
Assets Total 4,118,966 4,054,192
(Unit: million yen)
As of March 31st, 2010
As of December 31th, 2010
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
- 7 -
Liabilities
Long-term Liabilities 2,448,014 2,432,904
Bonds 1,192,255 1,211,503
Long-term loans 492,283 508,094
Accrued retirement benefits 144,876 141,699
Reserve for reprocessing of irradiated nuclear fuel 347,291 350,780
Reserve for preparation of reprocessing of irradiated nuclear fuel 21,576 18,439
Reserve for decommissioning of nuclear power plant - 164,931
Asset retirement obligations 207,253 -
Deferred tax liabilities 37 16
Other fixed liabilities 42,440 37,439
Current Liabilities 588,101 532,221
Current portion of long-term debt 234,950 177,320
Short-term borrowings 112,881 111,886
Notes and accounts payable 44,968 47,964
Income tax payable 31,681 41,912
Other current liabilities 163,619 153,137
Liabilities Total 3,036,115 2,965,126
Net Assets
Shareholders’ Equity 1,055,844 1,054,819
Common stock 237,304 237,304
Additional paid-in capital 31,138 31,140
Retained earnings 789,686 788,538
Treasury stock -2,285 -2,164
Valuation and translation adjustments 9,970 16,973
Unrealized gain on other securities 13,452 16,382
Gain on deferred hedge -1,651 1,879
Foreign currency translation adjustments -1,831 -1,289
Minority Interests 17,036 17,273
Net Assets Total 1,082,850 1,089,066
Liabilities and Net Assets Total 4,118,966 4,054,192
As of December 31th, 2010 As of March 31st, 2010
(Unit: million yen)
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
- 8 -
(2) Quarterly Consolidated Income Statements April 1, 2009-December 31, 2009 April 1, 2010-December 31, 2010
Operating Revenues 1,060,369 1,081,639
Electricity 970,573 991,322
Other 89,795 90,316
Operating Expenses 961,663 984,623
Electricity 878,965 901,776
Other 82,698 82,847
Operating Income 98,705 97,015
Other Revenues 8,474 7,268
Proceed from dividends 2,178 1,989
Proceed from interests 2,001 2,279
Equity in earnings of affiliates 1,786 247
Other 2,508 2,751
Other Expenses 29,941 34,546
Interest expenses 26,744 25,806
Other 3,196 8,740
Total Ordinary Revenues 1,068,843 1,088,907
Total Ordinary Expenses 991,604 1,019,170
Ordinary Income 77,238 69,737
Extraordinary Loss - 18,428
Loss on adjustment for changes of accounting
standard for asset - 18,428
77,238 51,309
Income Taxes 30,247 25,372
Income Taxes-Deferred -2,080 -3,673
Income Taxes Total 28,166 21,698
Income before Minority Interests - 29,610
Minority Interests 120 106
Net Income 48,951 29,504
(Unit: million yen)
Income before Income Taxes and Minority Interests in
income
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
- 9 -
(3) Quarterly Consolidated Statements of Cash Flows
April 1, 2009-
December 31, 2009
April 1, 2010-
December 31, 2010
Operating Activities
Income before income taxes and minority interests 77,238 51,309
Depreciation and amortization 175,917 173,735
Decommissioning cost of nuclear power plants - 6,154
Amortization of nuclear fuel 16,641 19,974
Loss on disposal of property, plant and equipment 5,226 5,803
Loss on adjustment for changes of accounting standard for asset retirement obligations - 18,428
Increase(decrease) in liability for retirement benefits 448 3,174
Provision for reserve for reprocessing of used fuel -264 -3,488
Provision for preparation for reprocessing of irradiated nuclear fuel 2,847 3,137
Provision for reserve for decommissioning of nuclear power plants 5,587 -
Interest revenue and dividends received -4,179 -4,268
Interest expense 26,744 25,806
Loss on equity under the equity method -1,786 -247
Decrease in fund for reprocessing of irradiated nuclear fuel -8,748 -6,937
Decrease in accounts receivable 9,331 -11,870
Decrease in inventories, principally fuel, at average cost -512 -5,440
Increase in accounts payable -8,310 -2,466
Other -2,795 -10,305
Sub Total 293,387 262,498
Receipt of interest and cash dividends 4,589 4,576
Interest paid -30,486 -29,204
Income tax paid -8,870 -34,453
Net cash provided by operating activities 258,619 203,416
Cash Flows from Investing Activities
Purchases of property, plant and equipment -168,248 -188,472
Payment for investments and other -12,581 -63,226
Proceeds for recoveries from investments and other 7,553 4,503
Other 4,474 1,957
Net cash used in investing activities -168,802 -245,237
(Unit: million yen)
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
- 10 -
April 1, 2009-
December 31, 2009
April 1, 2010-
December 31, 2010
Cash Flows from Financing Activities
Proceeds from issuance of bonds 39,868 129,624
Redemption of bonds -50,000 -70,000
Proceeds from long-term loans 13,230 57,364
Repayment of long-term loans -56,245 -96,668
Net increase (decrease) in short-term borrowings -23,778 994
Net increase in commercial paper - 59,000
Cash dividends paid -28,398 -28,413
Other -1,095 -1,561
Net cash used in financing activities -106,419 50,339
Effect of exchange rate changes on cash and cash equivalents -73 19
Changes in cash and cash equivalents -16,675 8,538
Cash and cash equivalents at beginning of the fiscal year 88,124 68,178
Increase in cash and cash equivalent due to the merger of consolidated subsidiaries - 20
Cash and cash equivalents at end the of the 1Q 71,449 76,737
(Unit: million yen)
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2010 3Q
- 11 -
(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 FY2010 3Q
- 12 -
4. Supplementary Information
Income and Expenditure (Non-consolidated)
(Unit: 100 million yen, %)
FY2010 3Q FY2009 3Q Difference Change Composition Ratio
(A) (B) (A-B) (A/B) FY2010 3Q FY2009 3Q
Ordinary
Revenues
Lighting 4,170 4,040 129 103.2 41.0 40.6
Power 5,556 5,539 16 100.3 54.5 55.6
(Subtotal) (9,726) (9,580) (146) (101.5) (95.5) (96.2)
Other 460 382 78 120.5 4.5 3.8
[Sales] [10,127] [9,908] [218] [102.2] [99.4] [99.5]
Total 10,187 9,963 224 102.3 100.0 100.0
Ordinary
Expenses
Labor 1,208 1,288 -80 93.8 12.7 13.9
Fuel 1,910 1,546 364 123.6 20.0 16.6
Maintenance 1,305 1,393 -88 93.7 13.7 15.0
Depreciation 1,475 1,480 -4 99.7 15.5 15.9
Power purchase 988 851 137 116.1 10.4 9.2
Interest 243 250 -6 97.2 2.5 2.7
Tax & public dues 697 696 1 100.2 7.3 7.5
Nuclear back-end 357 374 -17 95.4 3.7 4.0
Other 1,355 1,417 -62 95.6 14.2 15.2
Total 9,543 9,300 243 102.6 100.0 100.0
[Operating Income] [895] [897] [-1] [99.8]
Ordinary Income 643 663 -19 97.1
Extraordinary Gain 183 - 183 -
Income before income taxes 460 663 -202 69.5
Income taxes 197 254 -57 77.5
Net Income 263 408 -145 64.5
(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)
FY2010 3Q FY2009 3Q Difference
[A] [B] [A-B]
Crude oil (CIF) price 80 $/b 66$/b 14$/b
Exchange rate 87 \/$ 94 \/$ -7 \/$