Statements made in this overview of operations regarding Kyushu Electric Power’s strategies
and forecasts and other statements that are not historical facts are forward-looking statements
based on management’s assumptions and beliefs in lights of information currently available,
and should not be interpreted as promises or guarantees.
Owing to various uncertainties, actual results may differ materially from these statements.
Investors are hereby cautioned against making investment decisions solely on the basis of
forward-looking statements contained herein.
Financial Results for 4/2005ー3/2006andFinancial Forecasts for 4/2006ー3/2007
April 28, 2006
Contents
- Financial Highlights
- Demand and Supply Condition
- Summary of Non-consolidated Results
- Summary of Consolidated Results
- Business Segment Information
- Summary of Consolidated Statements of Cash Flows
- Financial Highlights of Results Projection for FY2006
- Sensitivity Factors for FY 2006 Projection (Non-consolidated)
- Appendix12
3 and 456789Financial Highlights1Consolidated (Billions of yen,%)
FY2005 FY2004
(A) (B) (A)-(B) (A)/(B)
Sales 1,401.7 1,408.7 -6.9 99.5
Operating income 171.2 213.7 -42.4 80.1
Ordinary income 125.2 159.9 -34.6 78.3
[ Extraordinary loss ] [9.1] [10.5] [-1.3] [87.3]
Net income 76.8 89.2 -12.4 86.1
Change
Non-Consoidated (Billions of yen,%)
FY2005 FY2004
(A) (B) (A)-(B) (A)/(B)
Sales 1,329.4 1,333.1 -3.7 99.7
Operating income 159.6 201.5 -41.9 79.2
Ordinary income 114.1 152.9 -38.7 74.7
[ Extraordinary loss ] [10.0] [6.6] [3.3] [150.4]
Net income 69.1 89.3 -20.2 77.3
( Notes ) ・ Consolidation: 26 significant subsidiaries (21 for FY2004, newly added: 5, excluded: 0 )
・ Application of the equity method: 12 significant subsidiaries (13 for FY2004, newly added: 2, excluded: 3) and
12 significant associated companies (11 for FY2004, newly added: 1, excluded: 0 )
Change
Demand and Supply Condition21 Demand (Electricity Sales Volume) (Billion kWh, %)
FY2005 FY2004
(A) (B) (A)-(B) (A)/(B)
Residential 28.3 27.5 0.8 102.8
Commercial and industrial 54.7 52.7 2.0 103.7
Total electricity sales volume 83.0 80.2 2.8 103.4
Ordinary demand 60.8 59.0 1.8 103.0
Large industrial demand 22.2 21.2 1.0 104.6
Reposted
Change
2 Supply (Generated and Received Electricity Volume) (Billion kWh, %)
FY2005 FY2004
(A) (B) (A)-(B) (A)/(B)
Hydro 3.1 4.8 -1.7 65.2
(Water release factor) (81.6) (113.2) (-31.6)
Thermal 31.8 29.7 2.1 107.0
Nuclear 40.0 39.7 0.3 100.8
(Utilization factor) (86.8) (86.2) (0.6)
Total 74.9 74.2 0.7 101.0
Received from other companies 16.4 14.3 2.1 114.5
Power interchange -0.2 -0.1 -0.1 212.3
Pumping energy -0.3 -0.4 0.1 81.7
Total 90.8 88.0 2.8 103.1
Company-
generated
Change
Summary of Non-consolidated Results (1)31 Comparative Table of Revenues and Expenses (Billions of yen. %)
FY2005 FY2004
(A) (B) (A)-(B) (A)/(B)
Residential 562.3 566.7 -4.3 99.2 Lower electricity rates: -60.0,
Commercial and industrial 728.5 736.3 -7.7 98.9 increase in sales (+2.8 BkWh) and other: 48.0
Sales to other companies 7.7 4.5 3.2 173.0 Sales to other electric power companies: 2.1, sales to other companies: 1.1
Other 35.2 30.8 4.3 114.0 Incidental businesses: 4.8, gain on sales of securities: -1.7
[Sales] [1,329.4] [1,333.1] [-3.7] [99.7]
1,333.9 1,338.4 -4.4 99.7
Personnel expenses 178.4 185.9 -7.4 96.0 Employee retirement benefit: -3.5, salary expenses: -1.7
Fuel costs 179.7 143.2 36.5 125.5 Rise in oil CIF price: 23.3, increase in sales: 14.5
Maintenance costs 157.3 158.7 -1.3 99.2 Restoration costs for disaster damages: -1.5
Depreciation 199.5 210.3 -10.7 94.9 Thermal power: -6.2, nuclear power: -5.2
Purchased power 113.2 105.5 7.6 107.3 Purchases from other companies: 7.6
Interest charges 38.4 46.5 -8.0 82.6
Lower interest rates: -3.4, loan prepayment premium: -2.5, decrease in interest
bearing debts: -2.1
Other 352.8 335.2 17.6 105.3 Incidental businesses: 4.4, decommissioning costs of nuclear power units: 4.1
1,219.7 1,185.5 34.2 102.9
[159.6] [201.5] [-41.9] [79.2]
114.1 152.9 -38.7 74.7
-4.6 2.6 -7.3 -
10.0 6.6 3.3 150.4
Provision of monetary support for NEECO: 10.0,
loss due to asset impairment : -6.6
69.1 89.3 -20.2 77.3
Change
Main factors in changes
Ordinary
revenues
Total
Provision for reserve for fluctuations in
water level
Extraordinary loss
Net Income
Ordinary
expenses
Total
[Operating Income]
Ordinary income
2. Main Reference Data (\/,ドル$/b, %)
Change
(A)-(B)
Exchange rate 5.8
Crude oil CIF price 17.0
Water release factor -31.6
Nuclear power plant utilization factor 0.655.881.686.838.8
113.286.2FY2004(B)113.3
FY2005(A)107.5
Summary of Non-consolidated Results (2)43 Comparative Table of Balance Sheets (Billions of yen)
As of
March 31, 2006
As of
March 31, 2005 Change
(A) (B) (A)-(B)
Assets 3,857.3 3,806.5 50.7
Depreciation and other: -229.8 (Utility: -199.5, incidental
businesses: -6.5, nuclear fuel impairment: -23.8)
Capital expenditures: 184.4
Reserve for reproccessing costs of irradiated nuclear fuel:60.1
Investment securities (stated at market value): 44.2
Deferred tax assets (stated at market value of investment
securities): -15.9
Liabilities 2,861.6 2,877.2 ‐15.5
Interest-bearing debt: -24.0 (3/05: 1,999.1 to 3/06: 1,975.1)
[Interest-bearing debt ratio]
3/05: 52.5% to 3/06: 51.2%
Shareholders'
Equity
995.6 929.3 66.3
Net income: 69.1,
Unrealized gain on available-for- sale securities: 28.3
Dividends: -30.7
[Shareholders' equity ratio]
3/05: 24.4% to 3/06: 25.8%
Main factors in changes
Summary of Consolidated Results5Revenues and Expenses Condition (Billions of yen, %)
FY2005 FY2004
(A) (B) (A)-(B) (A)/(B)
Revenues from electricity business 1,311.9 1,320.5 -8.5 99.3 -
Revenues from other businesses 89.7 88.1 1.6 101.8 -
1,401.7 1,408.7 -6.9 99.5 1.05
7.6 7.4 0.2 103.7 -
1,409.4 1,416.1 -6.6 99.5 -
Expenses from electricity businesses 1,140.7 1,107.7 33.0 103.0 -
Expenses from other businesses 89.6 87.2 2.4 102.8 -
1,230.4 1,194.9 35.4 103.0 -
53.7 61.1 -7.4 87.8 -
1,284.1 1,256.1 27.9 102.2 -
[171.2] [213.7] [-42.4] [80.1] [1.07]
125.2 159.9 -34.6 78.3 1.10
-4.6 2.6 -7.3 - -
9.1 10.5 -1.3 87.3 -
76.8 89.2 -12.4 86.1 1.11
Extraordinary loss
Net income
[Operating income]
Ordinary income
Provision for reserve for fluctuations in water level
Ordinary
expenses Operating expenses
Non-operating expenses
Total
Change Consolidated
ratio
Ordinary
revenues Operating Revenues (Sales)
Non-operating revenues
Total
Business Segment Information6(Billions of yen)
Total sales
(A+B)
1,311.9 2.3 1,314.3 -8.6 162.9 -42.4
46.1 77.6 123.8 0.6 4.6 1.1
36.0 37.7 73.7 4.5 -0.6 -
7.5 12.5 20.1 0.7 3.0 -0.7
1,401.7 130.4 1,532.1 -2.7 169.9 -41.8
- -130.4 -130.4 -4.2 1.3 -0.5
1,401.7 - 1,401.7 -6.9 171.2 -42.4
(Note)
The crassification of business segments is based on the business areas of mid-term management plan established in March, 2005.
Other
Consolidated
Change from
FY2004
Change from
FY2004
Total
Eliminations/
Corporate
IT and Telecommunication
Electric
Energy related business
Sales Operaing income
Sales
to outside
customers(A)Intersegment
sales(B)Summary of Consolidated Statements of Cash Flows7Comparative Table of Statement of Cash Flows (Billions of yen, %)
FY2005 FY2004 Change
(A) (B) (A)-(B)
270.9 419.2 -148.3
Income before income taxes and minority interests: -26.0
Reserve for reproccesing costs of irradiated nuclear fuel: -60.1
Depreciation: -10.5
loss due to asset impairment : -10.5
-197.0 -193.5 -3.5 (Capital expenditures including
nuclear fuel)[Reposted]
[-200.1] [-206.3] [6.1]
-66.6 -221.0 154.4
Decrease in interest bearing debts: 160.7
(3/05: -197.1 to 3/06 -36.3)
Cash dividends paid: -7.0
(03/05: 23.6 to 3/06: 30.7)
7.2 4.6 2.5
70.8 212.9 -142.1
( Note) Free cash flows = Cash flows from operating activities - Capital expenditures including nuclear fuel
Free cash flows
Total
Main factors in changes
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Financial Highlight of Results Projection for FY20068Non-Consolidated (Billions of yen, %)
(A)-(B) (A)/(B)
Sales 1,290.0 (approx.) 1,329.4 -39.4 97.0
Operating income 134.0 (approx.) 159.6 -25.6 83.9
Ordinary income 95.0 (approx.) 114.1 -19.1 83.2
[ Extraordinary loss ] [ - ] [10.0] [-10.0] [ - ]
Net income 58.0 (approx.) 69.1 -11.1 83.9
FY2006 FY2005 Change
(A) (B)
Consolidated (Billions of yen, %)
(A)-(B) (A)/(B)
Sales 1,360.0 (approx.) 1,401.7 -41.7 97.0
Operating income 144.0 (approx.) 171.2 -27.2 84.1
Ordinary income 104.0 (approx.) 125.2 -21.2 83.0
[ Extraordinary loss ] [ - ] [9.1] [-9.1] [ - ]
Net income 62.0 (approx.) 76.8 -14.8 80.7
FY2006 Change
(A) (B)
FY2005
Sensitivity Factors for FY 2006 Projection (Non-Consolidated)9(Billions of yen)
Exchange rate ( \/$) 1.4 (approx.) 1.4 (approx.)
Oil CIF price ($/b) 2.4 (approx.) 2.4 (approx.)
Water release factor (1%) 0.3 (approx.) 0.3 (approx.)
Nuclear power plant utilization factor (1%) 2.1 (approx.) 1.9 (approx.)
Interest rate (1%) 3.1 (approx.) 3.2 (approx.)
FY2006 FY2005
Appendix
Comparison with the Previous Projection for FY2005
- Financial Highlights 1
Comparison with the Previous Projection for FY2005
(Financial Highlights)1Consolidated (Billions of yen, %)
(A)-(B) (A)/(B)
Sales 1,401.7 1,365.0 (approx.) 36.7 102.7
Operating income 171.2 151.0 (approx.) 20.2 113.4
Ordinary income 125.2 106.0 (approx.) 19.2 118.2
[ Extraordinary loss ] [9.1] [10.5] [-1.3] [87.3]
Net income 76.8 62.0 (approx.) 14.8 124.0
Change
Forecasts as of
November 2005(B)FY2005(A)Non-Consolidated (Billions of yen, %)
(A)-(B) (A)/(B)
Sales 1,329.4 1,295.0 (approx.) 34.4 102.7
Operating income 159.6 143.0 (approx.) 16.6 111.6
Ordinary income 114.1 100.0 (approx.) 14.1 114.2
[ Extraordinary loss ] [10.0] [11.2] [-1.1] [89.9]
Net income 69.1 59.0 (approx.) 10.1 117.2
Change
Forecast as of
November 2005(B)FY2005(A)<
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