Statements made in this overview of operations regarding Kyushu Electric Power’s strategies and
forecasts and other statements that are not historical facts are forward­looking statements based on
management’s assumptions and beliefs in light 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 forward­looking
statements contained herein.
Financial Results for 4/2006ー9/2006 and Financial Forecasts for 4/2006ー3/2007
October 27, 2006
■しかく
■しかく ■しかく
■しかく ■しかく
■しかく Contents
Contents ■しかく
■しかく ■しかく
■しかく ■しかく
■しかく
FY2006 Interim Financial Results Summary P1
FY2006 Interim Power Demand and Supply P2
FY2006 Interim Income Statements Summary (Non­Consolidated) P3
FY2006 Interim Balance Sheets Summary (Non­Consolidated) P4
FY2006 Interim Income Statements Summary (Consolidated) P5
FY2006 Interim Segment Information P6
FY2006 Interim Cash Flows Summary (Consolidated) P7
FY2006 Financial Forecasts Summary P8
FY2006 Sensitivity Factors (Non­Consolidated) P9
Appendix
■しかく
■しかく FY2006
FY2006 Interim
Interim Financial Results Summary
Financial Results Summary ■しかく
■しかく1 Consolidated (Units:Billions of Yen, %)
FY06 Interim FY05 Interim Difference % Change
(A) (B) (A)­(B) (A)/(B)
Sales 713.2 689.7 23.4 103.4
Operating Income 127.2 94.7 32.5 134.3
Ordinary Income 108.8 74.0 34.8 147.0
Net Income 66.7 42.5 24.2 157.0
Non­Consolidated (Units:Billions of Yen, %)
FY06 Interim FY05 Interim Difference % Change
(A) (B) (A)­(B) (A)/(B)
Sales 676.8 658.0 18.8 102.9
Operating Income 122.5 92.3 30.1 132.7
Ordinary Income 105.0 72.6 32.4 144.7
Net Income 64.8 41.6 23.2 155.9
【Outline】
As a result of more than expected electricity sales volume,
both sales and incomes rebounded on consolidated and
non­consolidated bases.
(Note)Scope of Consolidation and Companies Accounted for by Equity Method
Consolidated Subsidiaries: 29
Non­Consolidated Subsidiaries accounted for by Equity Method: 12
Affiliated Companies accounted for by Equity Method: 13 94.7127.2 108.874.066.742.5689.7 713.20100200300400500600700800FY05 Interim FY06 Interim(B\)020406080100120140160(B\)Operating Income(Right Axis) Ordinary Income(Right Axis)
Net Income(Right Axis) Sales(Left Axis)
92.3 122.572.6105.041.664.8
658.0 676.80100200300400500600700800FY05 Interim FY06 Interim(B\)020406080100120140160(B\)Non-Consolidated
Consolidated
■しかく
■しかく FY2006
FY2006 Interim
Interim Power Demand and Supply
Power Demand and Supply ■しかく
■しかく21 Power Demand (Electricity Sales Volume) (Units:Billions of kWh, %)
FY06 Interim FY05 Interim Difference % Change
(A) (B) (A)­(B) (A)/(B)
14.0 13.6 0.4 103.0
29.1 28.1 1.0 103.6
43.1 41.7 1.4 103.4
General Demand 31.3 30.6 0.7 102.4
Large Industrial Demand 11.8 11.1 0.7 106.1
2 Power Supply (Generated and Received) (Units:Billions of kWh, %)
FY06 Interim FY05 Interim Difference % Change
(A) (B) (A)­(B) (A)/(B)
Hydro 2.7 1.9 0.8 144.4
(Water Release Rate) (113.3) (75.6) (37.7)
Thermal 16.3 16.3 ­ 99.5
Nuclear 20.5 19.4 1.1 105.8
(Utilization Rate) (88.7) (83.9) (4.8)
Subtotal 39.5 37.6 1.9 105.0
7.7 8.3 ­0.6 93.6
­0.1 ­ ­0.1 ­
­0.2 ­0.2 ­ 119.3
46.9 45.7 1.2 102.8
Power Interchange
Pumped Storage Use
Total
Residential
Commercial and Industrial
Total Electricity Sales Volume
Received from Other Companies
Breakdown
Generated
■しかく
■しかく FY2006
FY2006 Interim
Interim Income Statements Summary (Non
Income Statements Summary (Non­
­Consolidated)
Consolidated) ■しかく
■しかく3(Units:Billions of Yen, %)
FY06 Interim FY05 Interim Difference % Change
(A) (B) (A)­(B) (A)/(B)
Residential 276.8 271.9 4.8 101.8
Commercial and Industrial 378.8 371.1 7.7 102.1
Sales to Other Companies 4.4 1.6 2.8 275.3
Sales to Other Electric Power Companies 1.8,
Sales to Other Companies 1.0
Other 20.3 15.5 4.7 130.4 Incidental Businesses 3.5
(Sales) (676.8) (658.0) (18.8) (102.9)
680.4 660.2 20.1 103.1
Personnel 74.2 87.7 ­13.5 84.6 Employees' Retirement Benefits ­11.8
Fuel 99.6 90.0 9.5 110.6 Crude Oil CIF Price 4.9, Exchange Rate 3.1
Maintenance 70.8 71.6 ­0.7 98.9
Depreciation 95.2 102.4 ­7.1 93.0 Thermal ­2.9, Nuclear ­1.5, Substation Facility ­0.8
Purchased Power 55.8 57.2 ­1.4 97.5 Purchase from Other Companies ­1.4
Interest Charges 17.4 18.3 ­0.9 95.0
Decrease in Interest Rate ­0.6,
Decrease in Interest­bearing Debt ­0.3
Back­end Costs for Nuclear
Power Generation
22.0 19.7 2.2 111.6 Reprocessing Costs of Nuclear Fuel 2.0
Other 140.0 140.3 ­0.2 99.8 Incidental Businesses 2.6
575.3 587.6 ­12.2 97.9
(122.5) (92.3) (30.1) (132.7)
105.0 72.6 32.4 144.7
1.3 ­4.2 5.6 ­
­ 11.2 ­11.2 ­ Loss on Business Restructuring(FY2006 Interim) ­11.2
64.8 41.6 23.2 155.9
(References) (Units: \/,ドル $/b,% )
FY06 Interim FY05 Interim Difference
(A) (B) (A)­(B)
115.4 109.5 5.9
67.6 53.1 14.5
113.3 75.6 37.7
88.7 83.9 4.8
Explanations
Total
(Operating Income)
Ordinary Income
Net Income
Extraordinary Loss
Provision for (Reversal of) Reserve for
Fluctuations in Water Level
Rate Reduction ­8.0,
Increase in Electric Power Sales(+1.4 BkWh) and other 20.5
Ordinary
Revenues
Nuclear Power Generation Capacity Utilization Rate
Water Release Rate
Ordinary
Expenses
Total
Exchange Rate
Crude Oil CIF Price
■しかく
■しかく FY2006
FY2006 Interim
Interim Balance Sheets Summary (Non
Balance Sheets Summary (Non­
­Consolidated)
Consolidated) ■しかく
■しかく4【Assets】 (Unit:Billions of Yen)
FY06 Interim
(Sep. 30, 2006)
FY2005
(Mar. 31, 2006) Difference
(A) (B) (A)­(B)
Utility Plant and
Equipment
2,592.0 2,652.1 ­60.0
Depreciation ­95.2
Construction Completed 39.6
Investments and Other
Assets
400.6 437.9 ­37.2
Reserve Funds for Reprocessing of Irradiated
Nuclear Fuel ­21.5
Investment Securities(Decrease in Unrealized
Holding Gains) ­12.7
Deferred Tax Assets(Investment Securities) 4.6
Other 821.8 767.2 54.5
Accounts Receivable 24.9
Construction in Progress 17.3
Total 3,814.5 3,857.3 ­42.7
【Liabilities and Shareholders' Equity】 (Unit:Billions of Yen)
FY06 Interim
(Sep. 30, 2006)
FY2005
(Mar. 31, 2006) Difference
(A) (B) (A)­(B)
Interest­bearing Debt 1,934.0 1,975.1 ­41.0
[Interest­bearing Debt Ratio]
Sep., 06 50.7%←Mar., 06 51.2%
Other Liabilities 838.7 886.4 ­47.6
Accrued Expenses ­21.1
Liabilities for Affiliate Companies ­20.1
Shareholders' Equity 1,041.6 995.6 46.0
Net Income 64.8
Dividends Paid ­14.2
Net Decrease in Unrealized Holding Gains on
Available­for­Sale Securities ­8.1
[Equity Ratio]
Sep., 06 27.3%←Mar., 06 25.8%
Total 3,814.5 3,857.3 ­42.7
Explanations
Explanations
■しかく
■しかく FY2006
FY2006 Interim
Interim Income Statements Summary (Consolidated)
Income Statements Summary (Consolidated) ■しかく
■しかく5(Units:Billions of Yen, %)
FY06 Interim FY05 Interim Difference % Change
(Consolidated Ratio)
(A) (B) (A)­(B) (A)/(B)
Electric 666.1 650.8 15.2 102.3
Other 47.1 38.8 8.2 121.2
713.2 689.7 23.4 103.4 (1.05)
4.1 3.3 0.7 123.4
717.3 693.1 24.2 103.5
Electric 541.2 556.2 ­15.0 97.3
Other 44.7 38.6 6.0 115.5
585.9 594.9 ­9.0 98.5
22.5 24.0 ­1.5 93.7
608.5 619.0 ­10.5 98.3
(127.2) (94.7) (32.5) (134.3) (1.04)
108.8 74.0 34.8 147.0 (1.04)
1.3 ­4.2 5.6 ­
­ 10.5 ­10.5 ­
66.7 42.5 24.2 157.0 (1.03)
Non­Operating Expenses
Total
Total
Ordinary
Revenues
Operating Revenues(Sales)
Non­Operating Revenues
Operating Expenses
Ordinary
Expenses
(Operating Income)
Ordinary Income
Extraordinary Loss
Net Income
Provision for (Reversal of) Reserve
for Fluctuations in Water Level
■しかく
■しかく FY2006
FY2006 Interim
Interim Segment Information
Segment Information ■しかく
■しかく6(Unit:Billions of Yen)
Sales to Customers Intersegment Sales Total Sales Change from Change from
(A) (B) (A+B) FY2005 Interim FY2005 Interim
666.1 1.2 667.3 15.2 123.3 29.2
22.2 33.2 55.5 1.6 1.1 1.0
18.9 16.0 35.0 3.6 ­ 1.7
5.8 6.8 12.7 2.9 2.1 0.8
713.2 57.4 770.6 23.6 126.6 32.9
­ ­57.4 ­57.4 ­0.1 0.6 ­0.3
713.2 ­ 713.2 23.4 127.2 32.5
Sales Operating Income
Electric
Energy Related Business
Consolidated
IT and Telecommunications
Other
Subtotal
Eliminations/Corporate
Sales53.831.49.755.535.012.70102030405060Energy Related Business IT and
Telecommunications
Other
FY2005 Interim
FY2006 Interim
Operating Income0.1▲さんかく1.71.21.10.062.1
▲さんかく 2.0
▲さんかく 1.5
▲さんかく 1.0
▲さんかく 0.50.00.51.01.52.02.5
Energy Related Business IT and
Telecommunications
Other
FY2005 Interim
FY2006 Interim(B\)(B\)
■しかく
■しかく FY2006
FY2006 Interim
Interim Cash
Cash Flows Summary (Consolidated)
Flows Summary (Consolidated) ■しかく
■しかく7(Unit:Billions of Yen)
FY06 Interim FY05 Interim Difference Explanations
(A) (B) (A)­(B)
172.1 137.5 34.5
Income before Income Taxes and Minority Interests 39.7
Reserve Funds for Reprocessing of Irradiated Nuclear
Fuel 21.5
Liability for Employees' Retirement Benefits ­12.6
Loss on Business Restructuring(FY2005 Interim) ­10.5
­110.8 ­102.7 ­8.0
(Capital Expenditures including Nuclear Fuel) (­108.9) (­104.1) (­4.7)
­64.7 ­34.9 ­29.8
Decrease in Interest­bearing Debt ­32.1
(FY2006 Interim ­50.3←FY2005 Interim ­18.2)
Decrease in Dividends Paid 2.3
(FY2006 Interim 14.2← FY2005 Interim 16.5)
­3.4 ­0.1 ­3.2
63.1 33.3 29.8
(※(注記))Free Cash Flows = Cash Flows from Operating Activities ­ Capital Expenditure including Nuclear Fuel
Cash Flows from Operating Activities
Cash Flows from Investing Activities
Total
Free Cash Flows
Cash Flows from Financing Activities
(※(注記))
(※(注記))
■しかく
■しかく FY2006
FY2006 Financial Forecasts Summary
Financial Forecasts Summary ■しかく
■しかく8144
171.2
125.210476.8621,398
1,401.7600700800900
1,000
1,100
1,200
1,300
1,400
1,500
FY05 Interim FY06 Interim(B\)020406080100120140160180200(B\)Operating Income(Right Axis) Ordinary Income(Right Axis)
Net Income(Right Axis) Sales(Left Axis)
159.6134114.19569.1581,328
1,329.4600700800900
1,000
1,100
1,200
1,300
1,400
1,500
FY05 Interim FY06 Interim(B\)020406080100120140160180200(B\)Non-Consolidated
Consolidated
Consolidated (Units:Billions of Yen, %)
FY06 FY05 Difference % Change
(A) (B) (A)­(B) (A)/(B)
Sales 1,398 1,401.7 ­3.7 99.7
Operating Income 144 171.2 ­27.2 84.1
Ordinary Income 104 125.2 ­21.2 83.0
Net Income 62 76.8 ­14.8 80.7
Non­Consolidated (Units:Billions of Yen, %)
FY06 FY05 Difference % Change
(A) (B) (A)­(B) (A)/(B)
Sales 1,328 1,329.4 ­1.4 99.9
Operating Income 134 159.6 ­25.6 83.9
Ordinary Income 95 114.1 ­19.1 83.2
Net Income 58 69.1 ­11.1 83.9
【Outline】
In FY2006, power sales volume is expected to increase.
However, factors such as rate reduction, increased fuel
costs and a legislation to reserve for additional nuclear
fuel reprocessing costs also decrease incomes. Sales
would level off, and both ordinary and net incomes are
forecast to decline.
■しかく
■しかく FY2006
FY2006 Sensitivity Factors (Non
Sensitivity Factors (Non­
­Consolidated)
Consolidated) ■しかく
■しかく9(Unit:Billions of Yen)
Exchange Rate
(1\/$)
1.6 1.4
Crude Oil CIF Price
(1$/b)
2.5 2.4
Water Release Rate
(1%)
0.3 0.3
Nuclear Power Generation
Capacity Utilization Rate (1%)
2.2 1.9
Interest Rate
(1%)
2.8 3.2
FY2006 FY2005
■しかく
■しかく ■しかく
■しかく ■しかく
■しかく Appendix
Appendix ■しかく
■しかく ■しかく
■しかく ■しかく
■しかく
FY2006 Financial Forecast Comparison with April 2006 Projection P1
■しかく
■しかく FY2006
FY2006 Financial Forecast
Financial Forecast Comparison with April 2006 Projection
Comparison with April 2006 Projection ■しかく
■しかく114414410410462 62
1,360
1,398600700800900
1,000
1,100
1,200
1,300
1,400
1,500
Apr., 2006 Oct., 2006(B\)020406080100120140160180200(B\)Operating Income(Right Axis) Ordinary Income(Right Axis)
Net Income(Right Axis) Sales(Left Axis)134134
95 955858
1,290
1,328600700800900
1,000
1,100
1,200
1,300
1,400
1,500
Apr., 2006 Oct., 2006(B\)020406080100120140160180200(B\)Non-Consolidated
Consolidated
Consolidated (Units:Billions of Yen, %)
Oct., 2006 Apr., 2006 Difference % Change
(A) (B) (A)­(B) (A)/(B)
Sales 1,398 1,360 38 102.8
Operating Income 144 144 ­ 100.0
Ordinary Income 104 104 ­ 100.0
Net Income 62 62 ­ 100.0
Non­Consolidated (Units:Billions of Yen, %)
Oct., 2006 Apr., 2006 Difference % Change
(A) (B) (A)­(B) (A)/(B)
Sales 1,328 1,290 38 102.9
Operating Income 134 134 ­ 100.0
Ordinary Income 95 95 ­ 100.0
Net Income 58 58 ­ 100.0
【Outlines】
・In response to strong power demand by large industrial users
and increasing air conditioning needs in summer, both
consolidated and non­consolidated sales are expected to
rise approximately 380M yen.
・By the end of FY2006, a new scheme is legislated to reserve
for additional nuclear fuel reprocessing costs. Ordinary and
net incomes are projected to stay same because of
appropriations for such additional reprocessing costs.
For more information, please contact:
For more information, please contact:
Investor Relations Group
Investor Relations Group
Corporate Planning Office
Corporate Planning Office
KYUSHU ELECTRIC POWER CO., INC.
KYUSHU ELECTRIC POWER CO., INC. Tel Tel : +81 92 726 1575
: +81 92 726 1575 Fax Fax : +81 92 733 1435
: +81 92 733 1435 URL URL : http://www1.kyuden.co.jp/en_ir_index
: http://www1.kyuden.co.jp/en_ir_index