Generating Long-term
Sustainability
Kyushu Electric Power Company Annual Report 2009
Kyushu Electric Power’s Mission
「Enlighten Our Future」
Towards a comfortable and
environment-friendly lifestyle today
and for generations to come.01Disclaimer Regarding Forward-Looking Statements:
Statements made in this annual report regarding Kyushu Electric Power Group’s strate-
gies and forecasts and other statements that are not historical facts are forward-looking
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. Inves-
tors are hereby cautioned against making investment decisions solely on the basis of
forward-looking statements contained herein.
The Kyushu Electric Power Group continues to provide steady and
reliable environment-friendly electricity and energy for our customers.
In the decades since its establishment in 1951, the Kyushu Electric Power Company has lived through post-war
reconstruction and subsequent high economic growth, the oil shocks of the 1970s, the development of high-
speed information systems, and the recent deregulation of the electric power industry. Throughout these changes,
Kyushu Electric Power and its employees have worked to supply reliable electric power in support of regional de-
velopment and the jobs and lifestyles of our customers.
Throughout deepening energy security and environmental issues, we will sustain reliable performance under
the Kyushu Electric Power’s Mission, as expressed by the key message "Enlighten our Future," continuing to
provide steady and reliable environment-friendly electric power and energy to our customers. Across the entire
group, we will fulfill our social responsibility to create sustainable corporate value by increasing the satisfaction
of our customers, shareholders, investors and all other stakeholders.
Steady and reliable,
Earth-friendly
energy.
We will assure comfortable
lifestyles through leading-edge
energy and environmental tech-
nology, while anticipating global
trends to provide steady and
reliable environment-friendly
energy to customers.・ Ensuring long-term stable
supply of electricity・ Responding to
environmental problems
Contents
Discovering solutions,
and putting
them into practice.
Services
that truly
satisfy.
Together, we will serve mul-
tiple customer viewpoints, mak-
ing their trust our first priority,
and we will bring forth services
that evoke a real sense of satis-
faction, joy and excitement.・ Promoting an energy
savings comfortable
lifestyle・ Business development
based on customer needs
Together, we will plan and conduct
business side-by-side with the whole
of Kyushu for our children’s future
and an affluent, environmental so-
ciety. And beyond that, we will look
to Asia and the world.・ Action on sustainable
development of Kyushu・ Contribution to global
CO2 reduction
Together, we will conduct busi-
ness that seeks the path to tomor-
row by promoting the potential
of every human being, respecting
individuality, and carrying out
free and lively discussion.・ Building stronger
communication with
stakeholders・ Raising the abilities and
aspirations of employees
In company with
Kyushu. And to
Asia and the world.
Increasingly aging
power facilities
Accelerated
changes in
energy demand
structure
Increasing
importance of
energy security
and global
environmental
issues
Personnel, with
the falling
birthrate and the
aging population02Kyushu Electric Power’s Mission 1
OUR BUSINESS 3
OUR TeRRITORY AND PERFORMANCE 5
Financial Highlights 7
To Our Shareholders 9
An Interview with the President 13
FAQ 18
Special Feature-The Five Pillars of Key Initiatives 19
1. Assurance of Stable Supply of Electric Power 20
2. Services Combining Comfort & Environmental Friendliness 23
3. Contribute to Sustainable Society in Kyushu, Asia & the World 25
4. Development of Adaptable Income and Expenditure Structure 27
5. Work Style Reform and Organizational Development 28
Corporate Governance 29
Corporate Social Responsibility 30
Compliance 31
Environmental Management 32
Board of Directors and Auditors 33
Financial Section 34
Outline of Kyushu Electric Power’s History 65
Corporate Data 66
Business
Environment
Our Business
Measures to ensure stable supply of electricity, while respecting the global
environment, and supplying services built upon society’s needs.
ー Providing value to society ー
The Kyushu Electric Power Group continues to provide steady and reliable electricity and energy to our custom-
ers at all times and contributes to the creation of a comfortable, environment-friendly and sustainable society by
providing lifestyle-oriented services that aptly increase the quality of society.03Environment-friendly Energy Business
Energy business in Kyushu: Contributing to the sustainable development of the Kyushu region
●くろまる An electricity business that continues to provide steady and reliable power
●くろまる A new energy business that uses alternative sources like wind, solar and biomass
●くろまる A solution business that responds to the diverse needs of our customers
●くろまる A gas business that provides end-to-end handling of LNG from receipt to sales
ENERGY BUSINESS OVERSEAS: Taking on the challenge of global-scale CO2 reduction with growth potential
●くろまる An efficient thermal IPP business
●くろまる Applying renewable wind, geothermal and other power sources
●くろまる Energy conservation and environmental consulting leveraging our thermal power plant heat-efficiency improvement
expentise and energy-efficient technology.
Social and Lifestyle-oriented Services Business
IT and telecommunications business: Ensuring earning power and putting our information
infrastructure to full use
●くろまる An optical broadband service business that achieves high quality at low cost
●くろまる An IT solutions business that provides the best solution from the customer’s standpoint
●くろまる A data center business with accumulated expertise and leading-edge infrastructure
●くろまる A fiber-optic cable leasing business that leverages group management resources
Environment and recycling business: Forming a resource-recycling society
●くろまる A fluorescent tube recycling business yielding renewable resources and sales of refurbished tubes
●くろまる A recycling business that shreds confidential documents into renewable resources
Lifestyle-oriented service business: Handling the diverse needs of all citizens in the region
●くろまる A senior citizen apartment complex business providing a rich and comfortable lifestyle and nursing services
●くろまる A residential building evaluation business to comprehensively support building construction
Social/Lifestyle-oriented Service
Environment-friendly Energy Business
(Core Business)IT/Telecommunication
Energy Business
in Kyushu
Electricity
Business
Energy Business
Overseas
Lifestyle-
oriented
Service
Environment/
Recycling
Principal Power Generation
Facilities of Kyushu Electric Power
(as of March 31, 2009)
Kyushu Electric Power, Japan’s fourth largest
electric power company, operates 193 power
generation facilities with a total capacity of
20.023 million kilowatts.
Hydroelectric power station
(more than 50 thousands kw)
Explanatory notes
Pumped storage power station
Thermal power station
Nuclear power station
Geothermal power station
Inner thermal power station
Wind power stations
Main substation, switchyard
500 kV power line
220 kV power line
Other company’s equipment
The figure of facilities show output (kW)
Chugoku Electric Power Co., Inc.
Shin Kokura
Karita
BuzenOitaShinOita
Takigami
Matsubara
Yanagimata
Sasuna
Tsushima
Toyotama
Izuhara
Asibe
Oronoshima
ShinikiIkiGenkai NPS
MatsuuraUkuGoto Archipelago
Shin Arikawa
Tenzan
Fukue Daini
Ainoura
Karatsu
Otake
Hatchoubaru
Hatchoubaru binary
Iwayado
Tsukabaru
Morotsuka
Omarugawa
Hitotsuse
Oyodogawa Daini
Oyodogawa Daiichi
Ogiri
Sendai
Sendai NPS
Yamagawa
Koshikijima
Koshikijima
Noma-misaki
Kuroshima Takeshima
Ioujima
Kuchierabujima
Yakushima
Shin Tanegashima
Shin Yoron
Yoron
Yorontou
Amami Islands
Okierabujima
Hetono
Kametsu
Tokunoshima
Shin Tokunoshima
Koniya
Kikai
Shin Kikai
Kikaijima
Tatsugo
Takarajima
Kodakarajima
Akusekijima
Tokara Islands
Suwanosejima
Tairajima
Nakanoshima
KuchinoshimaNazeAmamioshima
Shin China
Tanegashima
Takeshima Daiichi
Koshikijima Daiichi
Reihoku
Ohira
Kamishiiba
▼ Main Supply Facilities (as of March 31, 2009)
Addressing global fuel supply
and environmental problems,
economic efficiency and facil-
ity operation, we will develop
highly efficient LNG combined-
cycle, coal-fired and other ther-
mal facilities.
Since pumped storage has great
load-tracking capability with
prompt start and stop, we will
develop pumped storage as a
ready source for peak and emer-
gency usage.
Nuclear power
Thermal power Pumped storage
Solving environmental problems
and leveraging domestic energy,
we will aggressively develop and
promote hydroelectric, geother-
mal, solar and wind power.
Renewable energy
With superior supply stability,
environmental features and eco-
nomic efficiency, nuclear power
is a key source of power when
developed with keen attention to
safety.04九州地域における
Our Territory and Performance
The Kyushu Region—Gateway to Asia
Kyushu Electric Power has continued its growth along with the
development of the local economy.
ー Principal Features and Advantages of the Kyushu Region and Kyushu Electric Power ー
The Kyushu Region, where we primarily supply power, is the southernmost of the four major islands of Japan,
and is surrounded by 1,400 small islands. Kyushu has seven prefectures: Fukuoka, Saga, Nagasaki, Kuma-
moto, Oita, Miyazaki and Kagoshima. As the region of Japan that is closest to the Asian continent, it has long
been a gateway for cultural exchange and trade. Attracted by this geographical advantage, many industries like
automotive and semiconductors have chosen to set up here.05Major Statistical Indices
(compared to all of Japan)
Kyushu has an area of 42,000 km2,11.2% of Japan’s total; a population of
13.32 million (2008), 10.5% of Japan’s
total population; and a GDP of approxi-
mately 44円.3 trillion (fiscal 2006), 8.5%
of the national total. Other major eco-
nomic indicators show Kyushu to account
for about 10% of the Japanese economy.
Gross Domestic Product of
the Kyushu Region
(compared to the world)
In fiscal 2006, the gross domestic prod-
uct (GDP) of the Kyushu region was the
equivalent of US380ドル.7 billion. Com-
pared to the rest of the world, the Kyushu
economy is larger than Indonesia or Tai-
wan, and about the same level as Sweden
and Switzerland.
Automobile Production
in Kyushu
Automobile production in Kyushu
topped 1.1 million vehicles in 2008 after
five years of strong growth owing to the
expansion of production capacity through
new plant construction by several auto-
makers. The region’s share of Japanese
automobile output has been rising year
after year and Kyushu has assumed a cru-
cial position in domestic auto production.
Japan
11.2%
10.5%8.5%Kyushu
■しかく Total area (2008) ■しかく Population (2008)
■しかく Gross domestic (intraregional) product (FY2006)
Belgium 392.7
(Billion U.S. dollars)
382.8
374.6
364.5
364.4
380.7
Sweden
Kyushu
Switzerland
Indonesia
Taiwan
1,200
1,000800600400200012
(Thousands) (%)1086420
2004 2005 2006 2007 20087288759921,044
1,1098.39.7
10.2 10.511.2■しかく Vehicle production ■しかく Nationwide share
Principal Features of the Kyushu Region
Hong Kong
CHINA
Tokyo
Vladivostok
Nagoya
Osaka
JAPAN
Kyushu
Seoul
Pusan
Beijing
Dalian
Tsingtao
Nanjing
Taipei
Shanghai
KOREA
Share of Domestic
Electricity Sales
Actual electricity sales volume in fiscal
2008 came to about 85.9 billion kWh, or
about 10% of the national total, making
Kyushu Electric Power the fourth larg-
est power company in Japan. Designated
large-scale demand eligible for deregulat-
ed power sales accounted for 60% of sales,
while household and other uses accounted
for the other 40%.
Composition of
Power Output
Nuclear power accounted for 41% of fiscal
2008 power generation. In the same year,
Kyushu Electric Power’s nuclear power
generation facilities achieved a utilization
ratio of 84.6%, the highest in Japan. Our
operation of nuclear facilities stresses "safe-
ty first"--a principle that has supported
stable operations of nuclear facilities.
Other Companies
in Japan
888.9 billion kWh90%Kyushu Electric Power
85.9 billion kWh10%100806040200(%)
The Company
FY2008 result
Domestic companies
FY2008 presumption231518202312019162520100806040200(%)
The Company
FY2008 result
Domestic companies
FY2008 presumption41727175122682528121■しかく Oil, etc.
■しかく LNG
■しかく Coal
■しかく Geothermal
■しかく Hydro
■しかく Nuclear
■しかく Oil, etc.
■しかく LNG
■しかく Coal
■しかく Geothermal
■しかく Hydro
■しかく New energy
■しかく Nuclear
Composition of
Generation Facilities
Kyushu Electric Power strives for balanced
power generation with nuclear power at
the core that takes into overall account the
assurance of energy security and meeting
increased power demand, addressing global
environmental issues, and business efficien-
cy. We are proceeding with the planned
facility expansion of Unit 3 at the Sendai
Nuclear Power Station and currently aim
to start operations in fiscal 2019.
Kyushu Electric Power Business Performance06Consolidated Financial Summary
Years Ended March 31
Financial Highlights
Operating Revenues Revenue Share by Segment
Segment Information (before eliminating internal transactions)
(Millions of U.S. Dollars)
For the year (Billions of Yen)
Operating Revenues
Operating Income
Net Income
Electricity Sales Volume (Millions of kWh)
General Demand (Millions of kWh)
Large Industrial (Millions of kWh)
At year-end (Billions of Yen)
Total Assets
Shareholders’ Equity*1
Interest-bearing Debt
Per share of common stock
Net Income (yen and U.S. dollars)
Cash Dividends (yen and U.S. dollars)
Financial ratios (%)
ROA*2
ROE*3
Equity Ratio2009\ 1,524.184.733.9
85,883
61,859
24,024
4,110.8
1,054.7
2,110.6
71.84
60.001.33.225.72008
\ 1,482.3
105.541.788,082
62,873
25,209
4,059.7
1,067.0
2,040.0
88.19
60.001.73.926.32007
\ 1,408.3
155.165.984,399
60,706
23,693
4,038.8
1,081.6
2,031.7
139.37
60.002.46.226.82006
\ 1,401.7
171.276.882,956
60,765
22,191
4,102.3
1,052.7
2,104.9
161.67
60.002.77.625.72005
\ 1,408.7
213.789.280,199
58,982
21,217
4,049.7
979.2
2,139.4
187.91
60.003.39.424.22009
15,511ドル862345
41,836
10,734
21,4800.730.61
*1 Shareholders’ Equity = Equity - Minority Interests
*2 ROA = After-Tax Operating Income/Average Total Assets at beginning and ending of the Fiscal Year
*3 ROE = Net Income/Average Equity at beginning and ending of the Fiscal Year (U.S. dollar amounts have been translated from yen, for convenience,
at the rate of 98円.26=U.S.1,ドル the approximate rate of exchange at March 31, 2009.)
Electric Power84%Energy-related Business9%Other1%IT and Telecommunications6%Operating
Revenues
(2009)
1,675円.1
billion
billion
その他の事業 248億円
情報通信事業 884億円
エネルギー関連事業 1,470億円
電気事業 13,657億円
電気事業 13,101億円
エネルギー関連事業 1,283億円
情報通信事業 764億円
その他の事業 259億円
16,259億円
億円2008200820092007
Electric Power 1,365円.7 billion
Energy-related Business 147円.0 billion
IT and Telecommunications 88円.4 billion
Other 24円.8 billion
Other 24円.4 billion
IT and Telecommunications 92円.7 billion
Energy-related Business 157円.2 billion
Electric Power 1,400円.7 billion
3月期売上高
1,625円.9 billion
billion
1,675円.1billion
billion
15,408億円
億円
3月期売上高07Operating Revenues Operating Income Net Income
Earnings per Share (EPS) Return on Equity (ROE) Return on Assets (ROA)
Interest-bearing Debt Shareholders' Equity/Equity Ratio Debt/Equity Ratio
(Billions of Yen)
'05 '06 '07 '08 '09
1,408.7
1,401.7
1,408.3
1,482.3
1,524.15001,000
1,500
2,000
'05 '06 '07 '08 '09
213.7
171.2
155.1
105.584.750100150200250
(Billions of Yen)
'05 '06 '07 '08 '0989.276.865.941.733.920406080100
(Billions of Yen)
'05 '06 '07 '08 '09
187.91
161.67
139.37
88.19
71.8450100150200
(Yen)
'05 '06 '07 '08 '09
2,139.4
2,104.9
2,031.7
2,040.0
2,110.65001,000
1,500
2,000
2,500
(Billions of Yen)
'05 '06 '07 '08 '093.32.72.41.71.321345(%)'05 '06 '07 '08 '09
979.2
1,052.7
1,081.6
1,067.0
1,054.724.225.726.826.325.74002006008001,000
1,200201030405060
(Billions of Yen) (%)
'05 '06 '07 '08 '099.47.66.23.93.2426810(%)'05 '06 '07 '08 '09
218.48
199.94
187.84
191.19
200.1112060180240300(%)08To Our Shareholders
To continue to deliver environment-friendly energy,
Kyushu Electric Power is addressing essential tasks now,
rather than later, when it may be too late.
We would like to begin by thanking you, our shareholders, for your continuing support of Kyushu Electric Power.
To clearly define the future long-term management direction, in March 2009, Kyushu Electric Power
established its first Long-term Management Vision since 1985. Although the current adverse business
environment may well continue, we intend to appropriately address issues such as energy security and global
environmental problems in order to provide sustained value to stakeholders.
In this annual report, we explain the Kyushu Electric Power Group’s medium-term to long-term manage-
ment direction for the creation of sustained corporate value for the Kyushu Electric Power Group, focusing
on the content of the Long-term Management Vision and the new medium-term management policy, recent-
ly formulated to realize Kyushu Electric Power’s Mission, "Enlighten Our Future."
Establishment of the Long-term Management Vision
The business environment surrounding the Company is like-
ly to change dramatically owing to rising uncertainty about
the future economic outlook, worldwide expansion of ener-
gy demand, increased constraints on energy resources and
increased importance of global environmental problems.
Even in these circumstances, we must continue to fulfill
our obligation to contribute each day to comfortable, envi-
ronment-friendly living for our customers through the stable
provision of electric power and energy to achieve Kyushu
Electric Power’s Mission as expressed in the brand message
"Enlighten Our Future."
At the same time, in the electric power business, extreme-
ly long periods of time are required for the development
and maintenance of facilities, and the construction of major
power sources and trunk transmission system infrastruc-
ture takes from 20 to 30 years. As well, the development of
personnel and organizational systems, the establishment
of business operation systems and technical succession all
unfold over decades. In view of the extremely long business
cycle that is characteristic of the electric power business,
long lead times make it necessary to approach essential
tasks by addressing them now, rather than later, when it
may be too late.
In light of this tremendous change in the business envi-
ronment and the distinctive characteristics of the electric
power business, we have established our first Long-term09Management Vision in a quarter century to define for manage-
ment the overall sweep of the Kyushu Electric Power Group
over the coming decades.
Long-term Outlook for the Operating Environment
Uncertainty in the business environment surrounding the Com-
pany is increasing, as evidenced by large swings in the price of
crude oil, instability in the financial situation and concern about
a global economic recession. However, from a long-term per-
spective of 20 to 30 years, we consider the following transforma-
tional themes to be highly certain.
1. Increased importance of energy security and global
environmental problems
Attendant on worldwide population increase and economic
growth in developing countries, worldwide energy demand is
expected to increase over the long term (Figure 1). At the same
time, as oil and other fossil fuels are limited, constraints on the
supply of energy resources are likely to increase. Accordingly,
the balance of energy supply and demand is likely to tighten,
and fuel procurement difficulties and soaring resource prices are
matters for concern.
Also, according to the fourth report of the Intergovernmental
Panel on Climate Change (IPCC), human activity is identified as
a major cause of global warming, and recognition of the need to
reduce emissions of CO2 and greenhouse gases by at least half
by 2050 is taking hold worldwide.
2. Acceleration of change in the energy demand structure
In Japan, attendant on maturation of the economy in the form of
future population decline and advancement of energy conserva-
tion, future energy consumption is likely to flatten or decrease.
However, the shift toward electric power, which offers across-
the-board superiority with respect to environmental friendliness,
convenience, economy and stability of supply, may continue to
accelerate (Figure 2).
In Kyushu, fossil fuels now account for approximately 85% of
final energy consumption, and it is necessary to reduce that pro-
portion (Figure 3).
3. Aging of electric power facilities
Many of the Company’s facilities were constructed to accom-
modate increases in demand for electric power attendant on
economic growth, therefore the number of aged facilities will
increase in the coming years.
4. Diversification of values and the graying of society
Attendant on internationalization and the rapid spread of the
Internet, people’s lifestyles and values are diversifying. Also,
awareness that companies are public entities is on the rise and
requirements for CSR are increasing. Also, society itself is chang-
ing, with the working population of Japan expected to decrease
sharply, due to the falling birthrate, with the rising belief in
equal participation by men and women in society and with peo-
ple seeking to more evenly balance their work and home life.100 20 30 40 50 60 70 80 90 100(%)Coal14.4%Oil46.6%
Transportation
29.5%
LP Gas5.5%City Gas5.7%Fossil fuel
13.0%
Nonfossil fuel
12.0%Heat 2.8Electric Power 25.0%
(Kyushu Electric Power 19.6%)%Industrial8.3%Business6.0%Household2.8%19902,00004,000
8,000
6,000
10,000
14,000
12,000
16,000
18,000
20,000
2006 2015 2030
(Unit: million tons oil equivalent)
8,757
11,730
14,121
17,014
Africa
Middle East
South and Central
AmericaAsia(exclude Japan)
Japan
China
Former Soviet
Union, etc.OECD(exclude Japan)
1975 1980 1985 1990 1995 2000 2005(%)14.8%
17.1%
Domestic
(include in-house power generation and PPS, etc.)
Japan
(include in-house power
generation and PPS, etc.)
Japan
(exclude in-house power
generation and PPS, etc.)
19.3%
20.7%
21.3%
20.4%
16.2%
17.2%
19.6%
22.2%
25.0%
22.6%
24.2%102030"The proportion of electric power in Japan’s
final energy consumption is steadily rising,
increasing by about 10 percentage points
during the past 30 years. This trend holds in
Kyushu as well."
(Figure 1) Outlook for World Energy Demand by Region1
(Figure 2) The Share of Electric Power in Final Energy Consumption2
(Figure 3) Fuel Composition Ratio for Energy Consumed in Kyushu (FY2005)3
1. Source: International Energy Agency (IEA) "World Energy Outlook 2008"
2. Source: The Institute of Energy Economics, Japan "EDMC Handbook of Energy & Economic Statistics in Japan"
3. Note: Final energy consumption excludes fuel consumed as raw material. Sources: Agency for Natural Resources and Energy, Energy Consumption Statistics by Prefecture,
Ministry of Land, Infrastructure, Transport and Tourism statistics, etc.1011
The Kyushu Electric Power Group must adapt to each of these
trends as it seeks to recruit and retain personnel, ensure succes-
sion of technologies and respond to changes that affect people
and work.
Management Direction
Faced with these major changes in the business environment, in
order to continue to fulfill our social mission and responsibility
of providing steady and reliable electricity and energy and con-
tributing each day to comfortable, environment-friendly living for
our customers, we will implement various initiatives and create
sustained corporate value through the following course of action.1. Even amid sweeping change in the energy situation, we will
provide a stable supply of environment-friendly energy.
Making safety our foremost consideration, we will proceed
steadily with the development of nuclear power, which offers
across-the-board superiority in terms of stable resource procure-
ment, environmental friendliness and economy. At the same
time, we will step up the introduction of renewable energy, the
improvement of energy efficiency at facilities and technical de-
velopment.
We will also develop and maintain disaster-resistant facilities in
the course of periodic updating of aging equipment in accordance
with forecasts for increased devastation from natural disasters at-
tendant on global warming. In facilities operation, we will put in
place a framework for the stable supply of electricity to customers.
2. We will think and act together with customers and local
communities to create a sustainable society.
To actively contribute to the creation of a sustainable society in
Kyushu, we will cooperate with customers and local communi-
ties to transform Kyushu’s overall energy demand structure by
means including a shift to non-fossil energy sources and the
promotion of energy conservation.
Also, in the light of global economic trends, especially relat-
ing to developments in Asia, where economic development is
soaring, we will apply the technologies and expertise we have
developed over the years to contribute to the stable supply of
energy and efficiency improvement in the countries and regions
we serve and to CO2 emissions reduction on a global scale.
We will also engage in businesses that increase the quality
of society and the quality of life, a matter of great social signifi-
cance.
3. We will create an organization in which each employee can
obtain job satisfaction and grow through work.
We will mount an appropriate group-wide response to issues
that arise from the graying of society, such as the recruitment
and retention of personnel, technology succession and employ-
ee age composition. We will create organizations in which each
employee can obtain job satisfaction and grow through work
and in which each workplace supports employee initiative.3We will create an
organization in
which each employee
can obtain job sat-
isfaction and grow
through work.21
We will think and
act together with
customers and local
communities to
create a sustainable
society.
Even amid sweeping
change in the energy
situation, we will
provide a stable sup-
ply of environment-
friendly energy.
Kyushu
Electric
Power’s
Mission THE CREATION OF SUSTAINED CORPORATE VALUE
Long-Term
Management Vision
Customer Satisfaction
・The stable supply of environment-friendly energy
・Realization of competitive energy prices through means including rigorous
management efficiency
・Lifestyle proposals and service provision that combine comfort with
environmental friendliness
Contribution to a Sustainable Society
・CO2 emissions reduction
・Contribution to the creation of sustainable communities
・Contribution to the creation of sustainable societies in Asia and around the world
through the utilization of energy and environmental technologies and expertise
Co-creation with Business Partners
・Building relationships of mutual trust, cooperation and joint creation of value
Employee Job Satisfaction and Growth
・Job satisfaction and growth
・Improvement of work-life balance
Financial Results・Achieved through the provision of value to customers, local communities and society at large
Kyushu Electric Power Group's Vision
Front Office and Branch Office
Mid-term Business Plan
The Provision of Value to Stakeholders
In the Long-term Management Vision, we consider societal
needs that will arise from changes in the economy and society
over a long-term span of 30 years with the aim of continuing to
provide long-term socially significant value, taking into account
the Company’s management resources and Kyushu Electric Pow-
er’s Mission.
Specifically, we will provide customers with a stable supply of
environment-friendly energy through supply-side and demand-
side energy efficiency improvements using such means as con-
version to non-fossil fuel energy, nuclear power generation and
renewable energy sources, improvement in the thermal efficien-
cy of thermal power generation and the promotion of energy
conservation by customers.
We will also contribute to CO2 emissions reduction on a
global scale through the stable supply of energy and efficiency
improvements not only in the Kyushu region, but also in Asia
and elsewhere overseas.
We believe that the provision of the value required by society
is the creation of value for all stakeholders on a sustained basis.
Through the steady implementation of these activities we intent
to link the stakeholder benefits described above to long-term
shareholder value.
The Creation of Corporate Value Group-wide
To ensure that the entire Kyushu Electric Power Group shares a
basic concept of management and engages in activities in unison,
we have established the Kyushu Electric Power Group Manage-
ment Basic Policy along with the Long-term Management Vision.
This concept has as its fundamental principle "We at all times
provide steady and reliable electricity and energy to our custom-
ers and contribute to the creation of a comfortable, environment-
friendly and sustainable society through the provision of services
that increase the quality of society and the quality of life."
The Kyushu Electric Power Group will continue to work in
unison to contribute to the creation of a comfortable, environ-
mentally friendly, sustainable society and undertake to create
sustained corporate value. We request the continuing under-
standing and support of our shareholders and investors in the
years ahead.
Group Companies
Business Plan
Kyushu Electric Power Group Management Basic Policy
(mind, business attitude, business area)
The company Group companies
Kyushu Electric
Power Group's
Vision
Management
Direction in Long-Term
Set Policy for
Three Years
Execution of
Three-year Plan
Medium-term Management Policy
Each Group Company’s Mind
Chairperson: Shingo Matsuo President: Toshio Manabe12Long-term Management Vision
Vision and Plan
An Interview with the president
Growing together with stakeholders to
deliver sustained value
The Company has established a new medium-term management policy covering the years from fiscal 2009 to
fiscal 2011 to reliably cope with a current adverse business environment characterized by large swings in the
price of crude oil, instability in the financial markets and a global economic recession and address essential
tasks now, rather than later, when it may be too late in accordance with the Long-term Management Vision.
By addressing important issues from the perspective of fulfillment of corporate social responsibility, includ-
ing the promotion of nuclear power, the further introduction of renewable energy and the promotion of energy
conservation, we will create sustained value for everyone involved in the Company’s business activities.
Q1. What are your thoughts and impressions about fiscal 2008?
Looking back on fiscal 2008 (the year ended March 31, 2009),
we revised the business performance forecast three times as we
responded to a bewildering swings in business environment that
included wild fluctuation of the price of crude oil and a global
economic recession triggered by the financial crisis in the Unit-
ed States. For a time, we were even resigned to posting our first
loss in 29 years. Although, in the end we were able to secure
nearly enough profit to fund the dividend, thanks to improve-
ment in the fuel situation and far-reaching cost reduction efforts,
I consider the business environment to have been extremely
adverse.
In these circumstances, in the business results for fiscal 2008
the Kyushu Electric Power Group posted consolidated net sales
of 1,524円.1 billion, an increase of 2.8% year on year. Although
the amount of electric power sold fell by 2.5% to 85.9 billion
kWh, owing to a decline in large industrial demand triggered
by the recession, lighting and power charges rose due to an
increase in the fuel cost adjustment for soaring fuel prices. At
the same time, operating expenses increased by 4.6% year on
year to 1,439円.4 billion, reflecting an increase in fuel costs13and the cost to purchasing electricity from other companies re-
sulting from factors including soaring fuel prices in the first half.
As a result, operating income declined by 19.7% year on year to
84円.7 billion, and net income fell by 18.5% to 33円.9 billion.
Also, I think that fiscal 2008 marked a new phase of environ-
mental action: the first commitment period of the Kyoto Proto-
col began, it was agreed at the Toyako Summit in July to pursue
a course of reducing greenhouse gas emissions worldwide by
2050. Discussion in Japan began about a new surplus solar pow-
er purchasing system.
I have long thought that the essence of the electric power
business, namely the stable provision of electricity to customers,
will not change and that a period of 20 to 30 years isn’t very long
from the perspective of large-scale power source development.
However, in light of the recent aggravation of energy and envi-
ronmental problems, the aging of facilities and organizational and
personnel issues, in fiscal 2007 I judged that the time was ripe for
formulation of a vision for the future and began consideration of
the management direction for the coming 20 to 30 years.
This vision for the future was established and announced
at the end of March 2009 in the form of our first Long-term
Management Vision since 1985, formulated to achieve Kyushu
Electric Power’s Mission. Although the initiatives to continue to
reliably deliver environment-friendly energy into the future set
forth in the Long-term Management Vision have yet to begin,
one positive outcome is that we have clearly defined the pace
and direction for Group management.
Q2. Please provide the background to the review of the medium-
term management policy during the implementation period.
Heretofore, on the basis of the medium-term management poli-
cy established in 2005, the Company has achieved results from
initiatives to ensure the stable supply of electric power through
the development and maintenance of efficient facilities and the
assurance of long-term stability in fuel procurement, undertaken
demand creation through reinforcement of price competitiveness
and the promotion of all-electric housing and worked to pro-
mote nuclear power by means including a pluthermal project.
Nevertheless, the business environment is characterized by a
rapidly heightened sense of uncertainty about the future, owing
to factors including sharp fluctuations in crude oil prices, instabil-
ity in the financial situation and the global economic recession.
Also, increased demand for global energy, exacerbation of con-
straints on energy resources, the heightened importance of global
environmental problems and other factors might change markedly
over the long term.
Amid this sweeping change in the business environment, it is
necessary to mount united group-wide activities to address the
issues facing the Company as we seek to achieve Kyushu Elec-
tric Power’s Mission. From this perspective, we have established
a new medium-term management policy covering the three-year
period from fiscal 2009 to fiscal 2011 to appropriately respond
to the current adverse business environment and to address es-
6,500
Kyushu
Electric Power
Other
Companies
7,000
7,500
(Yen)1.02005 2006 2007 2008 (FY)2.03.04.03.7billion kWh
Revise up
in March, 2007
2.5 billion kWh
(Billions of kWh)01.52.83.53.92007 2008 (FY)708090■しかく Investor satisfaction
■しかく Customer satisfaction(%)60
2005 2006 2007 2008 (FY)4080120100円 Billion
(Billions of Yen)026.851.072.9
119.9
Realization of Competitive
Prices in the Market
Comparison of charges with other electric power companies
(one month’s power for a model household*)
Creation of New Demand in the
Electricity Business
Establishment of the Brand Message
"Reliable and Secure"
Stakeholder Satisfaction with the Brand Message
External Operating Revenues of Businesses
Other Than the Electricity Business
*Calculated based on contract capacity of 30 A and monthly usage of 300 kWh. Charges include the fuel cost
adjustment amount for May 2009, a bank transfer discount and an amount equivalent to consumption tax.
*From a stakeholder satisfaction survey
Achievement of Management Targets in the Previous Medium-term Management Policy
Target: New demand of 3.7 billion kWh at the end of fiscal 2009
(compared with fiscal 2003)
Target: 100円 billion at the end of fiscal 2009
(compared with fiscal 2003)141. Measures to ensure the stable supply of electric power for the future
and a response to global environmental problems
○しろまる Promote nuclear power and develop renewable energy
○しろまる Implement stable, long-term facilities development
2. The provision of high-value-added services that combine comfort with
environmental friendliness
○しろまる Deliver high-quality electric power and services
○しろまる Support energy conservation with customers to reduce CO2
3. Contribution to the creation of sustainable societies in Kyushu,
in Asia, and around the world
○しろまる Activities with communities to build sustainable societies
○しろまる Technology for stable energy and for global CO2 reduction with a focus on Asia
4. Measures to develop an income and expenditure structure adaptable to
changes in circumstances
○しろまる Adaptable income and expenditure structure
○しろまる Efficient risk-based resource allocation, fuel cost reductions and new charge plans
○しろまる Lowest cost levels and stable dividends
5. Work style reform and organizational development in response to
next-generation needs
○しろまる Change work style in line with needs of graying society
○しろまる Serve employee and social needs, while promoting workplace opportunities and satisfaction
sential tasks now, rather than later, from a medium-term to long-
term perspective in accordance with the Long-term Management
Vision.
Q3. What are the key points in the new medium-term manage-
ment policy?
There are three key points in the new medium-term manage-
ment policy. The first is to engage in activities from a long-term
perspective. In addition to appropriately responding to adverse
business conditions such as fluctuation in fuel prices and global
deterioration of business conditions, we will address essential
tasks involving nuclear power, sustainable energy and energy
conservation, while focusing on major long-term change in the
social situation in the form of the increased importance of en-
ergy security and global environmental problems.
The second key point is to make environment-friendly en-
ergy a core business. In light of the increased importance of
energy security and global environmental problems and the
potential for a shift to electric power from other energy sources
for greater environmental friendliness and economics, we will
reorganize the environment-friendly energy business as a core
business on the basis of technologies and expertise developed
heretofore and actively engage in this business.
Finally, the third key point is that we have identified the is-
sues before us under the "five pillars." During the three years
of the plan, we will organize the management issues to be ad-
dressed from a long-term perspective, position initiatives to ad-
dress these issues as management objectives to be shared with
stakeholders within and beyond the Group and implement those
initiatives.
Q4. Now that the Group’s business domains have changed,
what are the policies for each business domain?
On the basis of the management direction set forth in the Long-
term Management Vision, we have reorganized our business do-
mains on the basis of factors such as synergy with the electricity
business and social importance. Specifically, we have positioned
the environment-friendly energy business as a core business and
coined the term Social/Lifestyle-oriented Service to encompass
the IT and telecommunications business, the environment and
recycling business and the lifestyle-oriented services business.
With regard to the environment-friendly energy business, in
Kyushu we will utilize our management and business expertise
in the electricity business and the management resources at our
disposal to actively engage in this business and implement ini-
tiatives to develop an income and expenditure structure that will
make it possible to address energy and global environmental
problems and appropriately cope with changes in business con-
ditions. Overseas, we will utilize our technologies and expertise
to contribute to the stable supply of energy and efficiency im-
provements in the countries and regions we serve, chiefly the
growing Asia region, and to the reduction of CO2 emissions on15Five Pillars of Key Initiatives
Energy Business
Overseas
・Renewable energy power
generation
・Energy-saving/
environmental consulting
・IPP business
・Interests on fuel and CO2
credits acquisition
Energy Business in
Kyushu
・New energy power generation
・Solution marketing to fulfill customers' needs
・Gas business
Electricity Business
・Promotion of nuclear power
・Development / introduction of
renewable energy
・Energy efficiency improvement
both on demand/supply sides
Synergy Effect with
Domestic Business
Business
development
based on so-
cial meanings,
synergy effect
with domestic
business
and risk/
profitability
evaluation
Social/Lifestyle-oriented Service
Environment/
Recycling
Lifestyle-
oriented Service
Environment-friendly Energy Business
(Core Business)IT/Telecommunication
Business development
based on social meanings,
synergy effect with core
business and risk/profitabil-
ity evaluation
Synergy Effect
with Core
Business
a global scale. We will also feed back the business experience,
fuel rights and other management resources acquired overseas
to operations in Japan.
With regard to the social and service businesses, we will
utilize our tangible and intangible management resources to
engage in business in accordance with the social significance
of the business in question, synergy with the core business and
risk and profitability evaluation.
Q5. What will be the high-priority activities in the coming years?
The Company has organized the management issues to be ad-
dressed during the coming three years under the "five pillars"
and position initiatives to address these issues as management
objectives. Since we have organized these initiatives on the ba-
sis of consideration from a long-term perspective of "tasks that
must be undertaken now, before it’s too late," we consider all of
them to be important. In that context, there are three priorities
that we consider especially important.
The first priority is further involvement with nuclear power.
Comprehensive consideration of future increases in power
demand, energy security and the need to respond to global en-
vironmental problems, indicates that it is necessary to develop
Unit 3 of the Sendai Nuclear Power Station by the second half
of the 2010s. Also, the establishment of a nuclear fuel cycle is
essential for securing a stable supply of energy for the future in
resource-poor Japan. On the basis of the results of environmen-
tal surveys conducted since 2003, in January 2009 the Company
proposed to the local authorities construction of Unit 3 of the
Sendai Nuclear Power Station. Also, if preparations progress ac-
cording to plan we expect to be able to implement the pluther-
mal process at Unit 3 of the Genkai Nuclear Power Station dur-
ing fiscal 2009. The Company will continue to rigorously ensure
safe, stable operation of nuclear power facilities and work to
promote understanding of our activities among the residents of
the region we serve.
The second key priority is involvement with renewable en-
ergy. We consider it necessary to actively engage in renewable
energy businesses to address global environmental problems
and utilize domestic energy sources. The current capacity of
wind-power and solar-power facilities installed in the Kyushu
region is about 300,000 kW for each type of facility, and we aim
to increase this to 1,000,000 kW each by the end of fiscal 2017.
We will install solar-power facilities at power station sites and
all business sites and promote the dissemination of solar power
in cooperation with customers and local communities.
The third key priority is appropriate management-resource
allocation based on risk management. We will engage in rigor-
ous risk management to rapidly and appropriately respond to
increasingly complex and diverse risks, identify risks from the
medium-term to long-term perspective and allocate manage-
ment resources in accordance with the importance and urgency
of risks. In our overseas energy businesses in particular, there is
greater room for improvement than in Japan with respect to the16Business Domain
environment and stable supply. Since the Company’s overseas
businesses have high social significance and can be expected to
generate revenue and profits, we will actively engage in these
businesses using technologies and expertise developed in Ky-
ushu on the basis of ample risk and profitability assessment.
Q6. In the new medium-term management policy you
have made "Management grounded in CSR" the basic
corporate stance. What are your views on corporate social
responsibility?
To achieve Kyushu Electric Power’s Mission as expressed in the
brand message "Enlighten Our Future" on the basis of our social
mission of providing steady and reliable electricity and energy
and contributing each day to comfortable, environment-friendly
living for our customers, the Group has mounted a united effort
to engage in management that places importance on coexistence
with the environment and society across all business activities
on the basis of six pillars of CSR activities: compliance man-
agement, information disclosure, environmental management,
respect for human rights, working environment development,
rigorous adherence to a safety-first policy and harmonious coex-
istence with local communities and society at large.
This management stance has not changed over time and will
not change. In undertaking the recent review of the manage-
ment stance, we used the term "CSR" and adopted the expres-
sion "Management grounded in CSR" in order to more clearly
indicate that CSR management is the basis for our overall
management stance. We considered that the general public has
come to understand CSR as a "triple bottom line" of corporate
activities from three perspectives, the economic (business), the
environment and society, and that we have made energy and
environmental problems, issues of extremely high social nature,
as our highest management priorities.
Q7. Finally, please discuss the policy on future shareholder returns.
We consider it important for a company to increase its ability
to deliver value to society. In accordance with this belief, we
intend to appropriately address issues facing the Company from
a long-term perspective and link this effort to shareholder and
investor returns by creating continuous corporate value.
Our fundamental policy on dividends is to pursue stability
in keeping with the characteristics of the electricity business.
We establish the dividend amount by considering the medium-
term and long-term outlook for income and expenditure for
the Group as a whole, including overseas operations. Although
the current adverse operating environment can be expected to
continue, for the time being we intend to make every effort to
maintain the annual dividend at 60円 per share.
The Kyushu Electric Power Group will continue to work as
one to meet the expectations of our shareholders and investors,
and I request your continued support in the years ahead.17FAQ
Q. What is the outlook for future demand?
With regard to electricity sales volume in fiscal 2009 (the year ending March 31, 2010), we
forecast overall demand of 84.7 billion kWh, a decrease of 1.3% year on year (0.6% after ad-
justing for temperature variations) owing to a decrease in air conditioning demand following slightly
higher than average summer temperatures in fiscal 2008 and a forecast for lower production in major
industries including electric, transportation machinery, and iron and steel.
In the medium- to long-term, population decline and the effects of energy conservation notwith-
standing, we anticipate a gradual but steady increase in demand, centered on consumer demand.
Demand will be driven by stable economic growth, an increase in the number of all-electric resi-
dences and the spread of heat pumps for commercial use. We forecast demand of 93.0 billion kWh
in fiscal 2018, which would mean an average annual growth rate of 0.5% from fiscal 2007 to fiscal
2018 (0.7% after adjusting for temperature and the leap year).
Q. Is Unit 3 of the
Sendai Nuclear Power Station necessary?
Having carefully considered factors including higher demand for electric power, the need for
energy security, a response to global environmental problems and cost efficiency, we are pro-
ceeding with balanced power source development centered on nuclear power. A response to ensure
a stable supply of electric power is necessary to cope with the summer peak demand period and
anticipated future difficulties in fossil fuel procurement. Measures to rapidly and sharply curb CO2
emissions are also necessary to respond to the problem of global warming. From these perspectives,
we consider construction of Unit 3 of the Sendai Nuclear Power Station to be necessary.
Q. Is the pluthermal plan safe?
Although there are some differences in the characteristics of uranium-plutonium mixed oxide
fuel (MOX fuel) and uranium fuel, the differences and the degree of impact have been as-
certained from data and study findings obtained heretofore. According to a report compiled in 1995
by the Nuclear Safety Commission, a government administrative agency, provided the proportion of
MOX fuel is up to approximately one-third of the total amount of fuel used, there is no major differ-
ence in the characteristics of MOX fuel from those of uranium fuel within nuclear reactors and it is
possible to use the same safety designs and assessment methods as those currently used. In the plu-
thermal plan intended for implementation at Unit 3 of the Genkai Nuclear Power Station, we plan to
use a maximum of 48 MOX fuel bundles, approximately one-fourth of the total of 193 fuel bundles.A.A.A.18
Looking to the future, the Kyushu Electric Power Group
will work in unison to address critical issues in accordance with the
newly established medium-term management policy.
Measures to ensure the stable
supply of electric power for the
future and a response to global
environmental problems
The provision of high-value-added
services that combine comfort with
environmental friendliness
Contribution to the creation
of sustainable societies in Kyushu,
in Asia, and around the world
Measures to develop an income and
expenditure structure adaptable to
changes in circumstances
Work style reform and organiza-
tional development in response to
next-generation needs
The Five Pillars of
Key Initiatives
The Group will practice management
grounded in CSR
and create value for all stakeholders
on a sustained basis.1234519
Promotion of Nuclear Power
Amid sweeping changes in the energy business environment
placing greater importance on energy security and global envi-
ronmental problems, the further development of nuclear power,
a major power source, is essential for the realization of Kyushu
Electric Power’s Mission and the provision of a stable supply of
environment-friendly energy into the future. The Company is
currently moving forward with the plan to construct Unit 3 of
the Sendai Nuclear Power Station with the aim of starting opera-
tions in fiscal 2019. This will increase the contribution of nuclear
power to total power generation, which has declined to about
40%, to the target of about 50% in the optimal mix of power
sources.
With regard to the construction plan, on the basis of the re-
sults of environmental surveys conducted since October 2003, in
January 2009 the Company issued a construction proposal to the
governor of Kagoshima Prefecture and the mayor of Satsuma-
sendai City. The next step is to steadily continue with environ-
mental assessment procedures, such as undergoing a national
government examination of the environment impact assessment
draft report.
Furthermore, the establishment of a nuclear fuel cycle involv-
ing the reprocessing of spent fuel from nuclear reactors, the
collection of useful resources, and their reuse as fuel is essential
for securing a stable supply of energy for the future in resource-
poor Japan. As one aspect of this, it is necessary to steadily im-
Measures to ensure the stable supply of electric power for the future and a response to global environmental problems
The Kyushu Electric Power Group will promote nuclear power, actively develop and introduce
renewable energy, and implement stable, efficient facilities development over the long term.1plement the pluthermal process, in which we will generate elec-
tricity by utilizing plutonium recovered through the reprocessing
of spent fuel as light-water reactor fuel. The Company plans to
load MOX fuel* in regular inspections scheduled to begin in late
August 2009. We will also expand our spent fuel storage facili-
ties and study and consider temporary storage facilities.
*MOX fuel: A fuel produced by reprocessing spent fuel to extract plutonium and
mixing the plutonium with uranium
Rendering of unit 3 of the
Sendai Nuclear Power Station
Note: Prepared from satellite image from Japan Space Imaging Corporation20Active Introduction and Development of Renewable Energy
From the viewpoint of alleviating global environmental prob-
lems and utilizing domestic energy sources, we are actively
engaged in the development, introduction, and expansion of
renewable energy sources, including wind power, solar power,
hydroelectric, geothermal, and biomass power. We aim to install
wind power and solar power facilities with capacity of 1,000,000
kW each by fiscal 2017.
With regard to wind power generation, we conducted an as-
sessment of impact on other power systems using historical
power generation data and expanded wind power system capac-
ity, from the previous 700,000 kW to 1,000,000 kW in Novem-
ber 2008. We had already accepted capacity of approximately
600,000 kW up to fiscal 2008 and plan to accept the remaining
400,000 kW over the coming two to three years.
With regard to solar power, we will consider and address
technical issues such as voltage increase due to reverse power
flow in preparation for the dissemination and expansion of
residential solar power generation. We also considered space
available for installation at Company sites and established a de-
velopment target of approximately 30,000 kW. We are currently
proceeding with development of a 3,000-kW mega solar power
generation system on the former site of the Minato Power Station
in Omuta City, Fukuoka Prefecture and plan to start operation
in fiscal 2010. We have decided to install solar power generation
facilities at all business sites with a target completion date of fis-
cal 2013 and plan to introduce 5,000 kW of capacity as a result.
In addition to these initiatives, we will actively undertake the
dissemination and expansion of renewable energy by develop-
ing maintenance flow power generation (hydroelectric) at dams
that discharge maintenance flow for rivers.
Stable, Efficient Facilities Development over the Long Term
In the interest of alleviation of global environmental problems
and the efficient use of energy, we are working to increase
power generation efficiency at thermal power generation facili-
ties. At the Shin Oita Power Station, an LNG power generation
facility, we will install high-efficiency gas turbines to replace the
No.1 System from fiscal 2009 to fiscal 2012 and develop a fourth
unit for the No. 3 System by fiscal 2016.
Since facilities constructed to accommodate increases in
demand for electric power attendant on economic growth are
aging, to ensure stable long-term facilities upkeep we are priori-
tizing the inspection, repair, and periodic replacement of age-
deteriorated transmission equipment, transformers, and other
power distribution equipment.
In addition, we are actively conducting studies and analysis
to formulate a replacement plan for aged facilities. A key aspect
of this is improvement of power line service life estimation ac-
curacy based on the results of analysis of data on facilities non-
conformance and deterioration.
CO2 Emissions Control Target
We have set a target of reducing CO2 emissions per unit of elec-
tric power sold (CO2 emission intensity) by about 20% from the
fiscal 1990 level on average from fiscal 2008 to 2012. We are
undertaking to maintain high-capacity operation through safe,
stable nuclear power operation, increase the operating efficiency
of thermal power stations and other power generation facilities,
expand the introduction of renewable energy sources, and pro-
mote energy conservation. These efforts notwithstanding, as of
the end of fiscal 2008 the outlook is for CO2 emissions reduction
of only about 14% during the target period. We will utilize the
Kyoto Mechanisms to counterbalance the shortfall against tar-
get by purchasing CO2 emission credits from the World Bank’s
Prototype Carbon Fund (PCF), the Japan GHG Reduction Fund
(JGRF), and individual CDM projects.22410010024186214317925302418521285281666581610212426451471
New energy
Wind power
Solar power
Biomass etc.
Hydroelectric (excluding pumped storage)
Geothermal
Total
FY2007 FY2017 FY2007 FY2017
Generated Power
(100 millions kW)
Output Capacity
(10 thousands kW)
Notes:
Review of existing plans for geothermal power, biomass, etc.
Engage in development on the basis of a development potential survey currently being conducted.
Figures include the portion of surplus electric power contracts with other companies.01951〜1955
■しかく Power supply facility
■しかく Transport equipment
Maximum output1956〜19601961〜19651966〜19701971〜19751976〜19801981〜19851986〜19901991〜19951996〜20002001〜20052006〜200720040060006,000
12,000
18,000
(Billions of Yen) (Thousands of kW)
Renewable Energy Introduction
Results and Targets
Change in Facilities Investment
(Expansion Construction)
Note:
Mean value in pertinent fiscal year.21Research and Development to Ensure the Safe, Stable Supply
of Environmentally Friendly Energy
Since fiscal 2006 we have partnered with Mitsubishi Heavy In-
dustries, Ltd. in the development of high-performance lithium-
ion batteries suitable for plug-in hybrid electric vehicles that can
be recharged using home power supply systems. In May 2008
we completed development of a new application for lithium-ion
batteries, consisting of three types of environmentally friendly
portable electric power supply units that emit no noise or ex-
haust. These units supply electricity for outdoor electromagnetic
cookers and lighting. We are now proceeding with R&D with
the aim of further increasing safety and conducting research to
achieve low cost.
We are also actively engaged in the introduction of wind pow-
er and solar power generation in the Kyushu region. To pave
the way for future facilities expansion, issues related to impact
on power generation systems must be resolved. One concern
related to wind power is the impact of expansion on electric
power quality, such as change in frequency and voltage. A con-
sideration at the time of expansion of solar power generation
is an increase in power line voltage due to reverse power flow.
We are developing a power grid stabilization storage system that
uses lithium-ion batteries to address the conceivable impact on
electric power systems at the time of expanded use of these re-
newable energy sources.
Measures for the Long-term Stable, Efficient Supply of Electric
Power to Outlying Islands
Kyushu has many outlying islands. On outlying islands having
no linkage with the main island, we principally supply electric
power by means of internal combustion power generation using
heavy oil as fuel. The Company is considering an optimal elec-
tric power supply system adapted to the characteristics of each
outlying island from the standpoints of energy security, environ-
mental protection, and economic efficiency.
As part of this initiative, to reduce CO2 emissions and curb
fuel costs on outlying islands, we will develop an outlying is-
land micro grid system that combines conventional internal
combustion power generation with renewable energy from solar
power and wind power and storage batteries. We will conduct
demonstration tests from fiscal 2009 to 2012 to verify and assess
power systems operation, systems control issues, and economic
efficiency.↓199055.80.436
0.317
0.365 0.375 0.387
0.374
After CO2 credits reflected
Unit 4 of
Genkai Nuclear
Power Station
becomes operational
(July, 1997)
Unit 3 of
Genkai Nuclear
Power Station
becomes operational
(March, 1994)*exclude CO2 credits
Note:
Calculates by "Method of
calculating the exhaust coefficient
according to the entrepreneur"
that the country provided.
0.373
(Forecast)*0.348 0.348
(Target)
2,430 2,390
3,030 3,160
3,410
3,21075.383.0 84.4
88.1 85.9
2000 2005 2006 2007 2008 2008〜2012 Average(FY)▲さんかく 20%
0.025
●くろまる CO2 emission intensity (kg-CO2/kWh)
■しかく Electricity sales volume (Billions kWh)
■しかく CO2 emissions (10 thousand t-CO2)〜〜〜〜〜〜〜〜↓↓↓↓↓Trends in CO2 Emissions,
and CO2 Emission Intensity
Accumulator Accumulator
Solar power
generation
Internal
combustion
power
generationWindelectricity
Control
computer
Household School
Communal facility
(community center, etc.)
Demand
curve
Solar power
(charge surplus power
in storage battery)
Dischargefromstorage
battery
Wind power
Internal combustion power
Midnight Noon Midnight
The Balance of Supply and Demand at
the Time of Introduction of a Micro
Grid System for Outlying Islands
Micro Grid System for Outlying Islands
Development of High Efficiency
Lithium-ion Batteries
Lithium-ion battery
Portable power supply device
(Large capacity)
Communication line
Electric power line22The provision of high-value-added services that combine comfort with environmental friendliness
The Kyushu Electric Power Group satisfies customers’ increasingly sophisticated and diverse
expectations and needs and contributes to CO2 emissions reduction by actively supporting
customers’ energy conservation efforts.2Maintaining Reliability of Electricity Supply
Although we currently achieve a high level of supply reliability
by international standards, the importance of the stable provi-
sion of high-quality electric power is increasing along with great-
er sophistication and diversity of customer needs due to factors
such as the advancement of computerization and electrification.
For this reason, we are improving power supply facilities op-
eration and maintenance technologies and increasing sophistica-
tion in facility operation and management. At the same time, in
accordance with our policy of avoiding power outages due to
accidents or problems that can be ordinarily anticipated, we are
engaging in facilities development to ensure that widespread
long-term power outages do not occur even in the event of fa-
cilities damage due to a large-scale natural disaster.
Promoting Efficiency in Customers’ Energy Use
We promote an energy-saving, comfortable lifestyle by which
our customers practice skillful, waste-free use of electricity to
enjoy comfortable, environmentally friendly living by dissemi-
nating and promoting all-electric housing and actively promoting
energy conservation. Central to this effort is the highly energy
efficient EcoCute system. We also strive to increase efficiency in
customers’ energy use by offering corporate customers compre-
hensive energy solutions that include energy conservation con-
sulting and the promotion of energy-efficient electric kitchens
and electric air conditioning. We aim to reduce CO2 emissions
by 90,000 tons in fiscal 2009 through these initiatives.
Technologies and Services That Meet the Needs of Customers
and Society
■しかく Technology Development Using the Intelligent House
As energy and environmental problems manifest themselves, in
December 2008 we built the Intelligent House at the Research
Laboratory for the purpose of considering the welfare of future
generations together with our customers and propose a highly
convenient lifestyle. Under the slogan "Ecology and Web Com-
fortable Life" we are conducting R&D into ways of using elec-
tricity from the perspective of a new environmentally friendly,
economical lifestyle in homes of the future.
Specifically, we are conducting research to realize safe, secure
living. For instance, in research to realize ecologically sound liv-
ing, we are testing the Kyushu Electric Power-developed home
energy management system (HEMS), a vehicle-to-home (V2H)
system, and sustainable residential energy that combines wind
power, solar power, and lithium-ion batteries. The HEMS incor-
porates optimal operation functions such as visual control of
power consumption, minimum CO2 mode, and minimum cost
mode, monitors the operation of electrical appliances, and op-
timally controls power sources and loads for commercial power
sources and batteries according to the season or power use situ-
ation. The V2H system supplies electricity to the home from the
lithium ion batteries installed in electric vehicles and effectively
uses the power. Other research projects include research into
comfortable living using the World Wide Web, such as the "Web
electrical outlet" for monitoring and controlling the operation
and use of electrical appliances in conjunction with HEMS, and
a clothes iron that applies induction heating technology, so that
the iron itself doesn’t get hot.23Pilot lamp-breaker
Fuel battery
電子カーテン
Electronic curtain
Wall greening
Rooftop greening
Power supply to home electronics
Sustainable
EnergyfordomesticuseV2HEVLAN,PLC
Solar power Lead-in Wire
Power meter
SunlightBBIQMobile phonePCA/CTVServer
In-home
health checks
Web outlet
IH iron
Small electricity storage with
momentary voltage
compensatory function
High Middle
Importance
of outlet
Uninterruptible powerLowHome ServerHEMSPassive ventilation
■しかく Activities to Promote the Use of Electric Vehicles
To promote the use of electric vehicles, which can be expected to
reduce environmental loads and create demand for electricity, in
February 2008, Kyushu Electric Power introduced ten i MiEV elec-
tric vehicles produced by Mitsubishi Motors to evaluate their poten-
tial suitability for use as company vehicles. We have developed a
fast-charging system that can be widely installed as electric vehicle
charging infrastructure and are conducting field tests.
The fast-charging system developed in-house is designed
for separation of the power supply and charging stand, which
makes it possible to reduce the size of the charging stand and
charge an electric vehicle to 80% capacity in roughly 10 minutes
to 30 minutes at most. Other features include a user-authenti-
cated charging system that uses ID cards or other identification
mechanisms and a Web browser function.
■しかく Customer Support Using Mobile Terminals
To improve customer service, in May 2009 we began operation
of the electricity distribution mobile phone system. This system
uses mobile phones equipped with a GPS function to speed up
service provision through the sharing of information on facilities
or worker location and work status by sales offices and work
sites. We are currently enhancing information leakage preven-
tion and other security functions.
This system was awarded the Grand Prize and the Minister for
Internal Affairs and Communications Award in the MCPC Award
2009, sponsored by the Ministry of Internal Affairs and Commu-
nications and the Ministry of Economy, Trade and Industry.
■しかく The Introduction of a New Low-Voltage Electronic Meter
To improve customer service and increase operational efficiency,
we have developed a new low-voltage electronic meter (unit
meter) equipped with a communications function. We plan sys-
tematic introduction of the new meter at customer sites.
Following widespread installation, the new low-voltage elec-
tronic meter is expected to contribute to proposals for an ener-
gy-saving, comfortable lifestyle and increase operating efficiency
through remote measuring operations. It will facilitate the rapid
restoration of power by ascertaining low-voltage blackout areas,
provide data on electricity use, and enable energy conservation
consulting.
In fiscal 2009 we will install the new meter at approximately
10,000 customer sites and conduct verification tests aimed at
commercialization of a remote meter reading system.
i MiEV and Rapid Charge Stand
Outline of Intelligent House
Improvement of
Operations
New services
Comfortable and eco-friendly
lifestyle proposals
・Consulting, customer support
・Meter reading
・Remote metering
Agreements
・Contract changes
via remote operation
(own fiber cable network)
(Transponder (wireless))
Remote
Control
Outage monitoring
・Low voltage blackout
・Prompt recovery
Transponder
(power-line carrier)
Sales Offices
Customer Service
Metering
Operation Flow after ADOPTION
of New Low-voltage Electric Meters2425
Contribution to the creation of sustainable societies in Kyushu, in Asia, and around the world
The Kyushu Electric Power Group works symbiotically with local communities and society at
large to promote the development of the Kyushu region. We undertake CO2 reduction on a glob-
al scale and contribute to the creation of sustainable societies in Japan and overseas. 3Activities That Promote Industrial Development
in the Kyushu Region
Local communities are the foundation of the Group’s business,
we believe that the development of local communities leads
to our own development and growth. Accordingly, we ensure
the stable delivery of inexpensive, high-quality electricity and
actively disseminate information to companies considering lo-
cating in Kyushu and offer solutions that take advantage of the
resources of local governments and the Group.
Specifically, we make use of visits to local governments and
our business network to gather information to ascertain cus-
tomer needs and are providing information through customer
visits and the corporate website. We put in place systems that
can quickly supply electric power when customers locate plants
in our service area. We actively utilize the Group’s management
resources to assist customers with plant location by introducing
our own land or proposing optimal energy solutions and the
use of communications networks.
In light of concern about a potential decline in the vitality
of the regional economy owing population decline and other
structural factors, the importance of regional projects expected
to contribute to regional vitalization is increasing. Accordingly,
we are actively participating and cooperating in projects aimed
at industrial development and urban vitalization.
Activities that Contribute to the Development of Children
In May 2009 we launched the Kyuden Future School project un-
der the slogan "Excited and shining." The aim of the project is to
stimulate the curiosity and enrich the sensitivity of the children
of Kyushu by providing them with various venues for learning
and encounters in fields including energy, the environment, cul-
ture, and the arts.
In this project, employees conduct on-site classes on energy,
the environment, and science at schools and university profes-
sors conduct participatory science experiment classrooms. In
addition, in the fields of culture, the arts, and sports we plan
to conduct full-scale classical music concerts, painting contests,
rugby classes, and other activities.
Environment-friendly Business Activities
To demonstrate leadership and initiative in environmentally
friendly business activities, we will undertake further reductions
in electric power consumption at our offices by systematically
introducing high-efficiency lighting fixtures and air conditioning
facilities and have decided to introduce about 1,000 electric ve-
hicles, including plug-in hybrid vehicles, as company vehicles by
fiscal 2020.
We also provide technical support for the development of re-
newable energy in the region, such as small-scale hydropower,
and are engaged in an activity to plant one million trees over a
ten-year period in cooperation with customers and local com-
munities.2526
Social/Lifestyle-Oriented Services
■しかく IT and Telecommunications Business
A number of initiatives to realize a fully computerized society are
being implemented, such as the dissemination and expansion of
the Internet, the computerization of companies, and the develop-
ment of electronic government. We utilize telecommunications
infrastructure such as our optical fiber network and data centers
and accumulated expertise to engage in businesses firmly rooted
in the region, such as the BBIQ broadband service and the provi-
sion of computerization solutions to local businesses and govern-
ments. The number of BBIQ subscribers has increased steadily
to approximately 260,000 at the end of fiscal 2008.
■しかく Environment and Recycling Business
For solution of the societal challenges of creating a recycling-
based economy and the prevention of environmental pollution,
we collect used fluorescent bulbs from companies, schools, and
local governments, separate them into their original materials,
and manufacture and sell recycled fluorescent bulbs.
To meet societal needs for information security and mitigate
environmental impact, we collect confidential documents gener-
ated by companies and local governments, erase confidential in-
formation, and recycle the paper to manufacture and sell paper
products.
■しかく Lifestyle-oriented Services Business
To provide fulfilling, highly convenient living environments to
aged customers, we operate a new style of urban condominiums
for senior citizens that harmoniously coexist with local com-
munities and condominiums with full-featured medical support
systems that provide care services that enable senior citizens to
lead secure, comfortable lives.
Overseas Energy Businesses
The geographical focus of our overseas energy businesses is the
growing Asia region, where we engage in electric power genera-
tion using environmentally friendly energy sources. We provide
a stable supply of energy in the region, increase energy efficien-
cy, and engage in high-efficiency thermal power IPP projects
and renewable energy power generation that contributes to CO2
emissions reduction on a global scale. In business operation, we
consider the stable procurement of fuel over the long term and
the acquisition of CO2 emissions credits.
Heretofore the Company has engaged in four IPP projects
in Mexico, the Philippines and Vietnam, and we have steadily
recovered our investment. As a new IPP project, in September
2008 we entered into a new IPP project by acquiring Senoko
Power Ltd., Singapore’s largest electric power generation com-
pany, in a consortium with other companies. This project will
assure a stable supply of electric power for Singapore. We be-
lieve that the project can contribute to the alleviation of envi-
ronmental problems such as CO2 emissions through fuel conver-
sion of the current oil-fired capacity to combined-cycle power
generation and that satisfactory profitability can be expected in
Singapore’s stable business environment.
We are also engaged in new renewable energy businesses in-
cluding the Datang wind power generation project in China and
the Sarulla geothermal power generation project in Indonesia.
Furthermore, the Company takes advantage of the experience
and expertise gained through the electricity business in Japan to
engage in environmental technology and energy conservation
consulting, primarily in Asia. We also contribute to the develop-
ment of engineers by accepting interns in fields such as power
distribution, thermal power generation, nuclear power genera-
tion, power transmission, and telecommunications.
In July 2009 we opened a business office in Singapore, which
we will use as a base for overseas business activities in the Asia
region to gather information on new projects and manage and
operate existing projects.
Datang wind power IPP Project
(in preparation)(Capacity: 50 thousand kW)
China: Chifeng Shi
China: Consultation for energy
conservation efforts
China: Shanghai ESCO Operating
Project Management
Taiwan: Consultation for building thermal power plants,
Technical consulting on substation construction
Ilijan IPP Project
(Capacity: 1.2 million kW)
Philippines: Batangas
Sarulla geothermal power IPP
(Capacity: 300 thousand kW)
Indonesia: North Sumatra
Phu My III Project
(Capacity: 717 thousand kW)
Vietnam: Ba Ria- Vung Tau
India
:Thermal power project
Improvement program of investigation
Thailand: Thai Provincial
Electricity Authority(PEA)
HV training center Consulting
Senoko Power
(Capacity: 3,300 thousand kW)
Singapore
Tuxpan II, V IPP Project
(Capacity: 495 thousand kWx2)
Mexico: Veracruz
Business Development Overseas
●くろまる Power Generation Business (in operation)
●くろまる Power Generation Business (in review)
●くろまる Consulting, Environment-related Business26Measures to develop an income and expenditure structure adaptable to changes in circumstances
The Kyushu Electric Power Group is undertaking to develop an income and expenditure struc-
ture that has flexible, diverse revenue and profit sources and undertakes appropriate management
resource allocation based on risk management and efficiency improvement.4Appropriate Allocation of Management Resources
Each year the Company identifies, classifies, and assesses ap-
proximately 50 operational risks and defines important risks.
On that basis, we decide a risk countermeasures policy through
executive management discussions and appropriately reflect the
countermeasures in the annual business plan.
Also, in view of the long time required for the development
and maintenance of facilities characteristic of the electric power
business, we strive to appropriately allocate management re-
sources from a medium-term to long-term perspective in accor-
dance with the importance and urgency of risks.
Efficiency Improvement
Facilities investment and repair costs and overheads are trend-
ing up as a result of measures to counter the aging of current
facilities and measures to increase the earthquake resistance
margin at nuclear power stations. We are reviewing planning
and replacement criteria and design standards and specifications
and working to increase facilities investment efficiency through
construction cost reductions. We are also striving for greater ef-
ficiency in repair costs and overheads through means including
postponement of repairs and a review of the scope of repairs
in accordance with their urgency and impact on operations, a
review of outsourcing costs (the scope of outsourcing and unit
prices), a review of rental expenses, and overhead reductions.
We are also pursuing cost reductions through the effective
use of purchase cost planning activities, supply chain manage-
ment, and other strategic purchasing techniques implemented
by means of cooperation among the materials departments,
facilities administration departments, and business partners as
well as diversification of purchase order methods and the use of
competitive price quotations.
Activities to Reduce Fuel Costs
The Company procures crude oil, coal, LNG, and uranium from
around the world for use as fuel for electric power generation.
We consider securing long-term, stable supplies of fuel to be the
most important management priority and are working to reduce
fuel costs and ensure stability through diversification of fuel
suppliers, contract periods, and pricing methods.
In April 2009 the Company put into service a jointly owned
LNG carrier, which is contributing to efforts to increase eco-
nomic efficiency through transport cost control and the use of
flexible means of transportation.
Consideration of New Charge Plans
By pursuing efficiency across all business operations heretofore,
the Company has reviewed its charge plans several times in an
effort to provide low-cost electricity charges. In September 2008
we decreased electricity charges approximately 1% and are com-
petitive at current pricing levels.
In future, we will strive to reduce electricity charges by rigor-
ously ensuring efficiency in every aspect of business operation.
We are currently considering charge plans to respond to cus-
tomer needs and societal requirements such as the introduction
of renewable energy.27Work style reform and organizational development in response to next-generation needs
The Kyushu Electric Power Group will rebuild its personnel and labor management systems from
a long-term perspective to cope with the graying of society and change in employee age composi-
tion and seek to develop organizations in which each employee obtains job satisfaction and grows
through work.5Development of Environments where People from Diverse
Backgrounds can Demonstrate their Capabilities and Skills
In view of future changes in the business environment and the
diversification of values, we are rebuilding our personnel and
labor management systems to improve employee job and life
satisfaction and enable employees to fully demonstrate their ca-
pabilities and skills.
Specifically, we will seek to develop integrated personnel and
labor management systems that organically link hiring, educa-
tion and training, employee transfer and assignment, perfor-
mance evaluation, and compensation systems to support growth
on the basis of clarification of the mindset and skills required of
employees in light of Kyushu Electric Power’s Mission.
In the interest of promoting work-life balance for employees,
we are introducing short-time work, flextime work, and other
systems to provide flexible support for childcare and nursing
care. Taking into consideration the use history of current work-
life balance support systems and employee needs, we will com-
prehensively examine and consider additional support measures
and employment systems to make possible greater workstyle
diversity.
In addition, we will put in place workplace environments in
which people from diverse backgrounds can demonstrate their
capabilities and skills and thrive by providing career formation
support for women and implementing measures to raise aware-
ness and measures to expand opportunities for older workers.
Development of Business Operations and an Organizational
Structure Adapted to Changes in the Business Environment
In consideration of the long-term impact on business operations
of difficulty in recruiting and retaining personnel and changes
in employee age composition, we are considering and imple-
menting measures for the efficient succession of technologies to
young employees and measures to take advantage of the knowl-
edge, skills, and experience of middle-age and older employees,
who will increase in number in the coming years.
To ensure the succession of core electric power technologies
throughout the Group, we will engage in personnel develop-
ment together with Group companies and partner companies
through personnel exchanges and the development of an educa-
tion environment.
Establishment of Kyushu Power Academy
In April 2008, Power Academy was established as a nationwide
activity to support young researchers in the field of electrical engi-
neering, broadly communicate the appeal of electrical engineering,
and develop the field at a time of a declining birth rate and declining
enrollment in science courses. Building on this successful initia-
tive, in June 2009 under the "Kyushu as one" regional initiative, we
established the Kyushu Power Academy as an independent activity
in Kyushu to develop a human network of universities and technical
colleges, develop engineers and researchers who will support electri-
cal engineering in Kyushu and Asia, and promote technology and
R&D. Planned activities are mutual recognition of credits and educa-
tor exchanges among universities and technical colleges, the offering
of intensive courses to prepare for the licensed electrical engineer ex-
amination, and the holding of electrical shop classes for elementary,
junior, and senior high school students.28Corporate Governance
The Company believes in carrying out meaningful initiatives for society under Kyushu Electric Power’s Mission over the
long term. To faithfully execute these initiatives, we spare no effort to enhance corporate governance as a central challenge
from a business perspective.
Board of Directors
The Board of Directors meets once each month, as a rule, to
make decisions on important corporate management matters
and to supervise the execution of business. The Company has
taken measures to vitalize the Board of Directors and strengthen
its supervisory functions, including a reduction in the number of
directors, and the appointment of outside corporate directors.
Matters for decision by the Board of Directors that require ad-
vance discussion or decisions that are important for business ex-
ecution are discussed by the Corporate Management Committee,
made up of the president and the executive officers.
Executive officers are assigned to various organizational units,
such as divisions and branches, to execute business; this structure
ensures rapid decision-making and efficient business execution.
Board of Corporate Auditors
The corporate auditors attend important meetings, includ-
ing meetings of the Board of Directors, conduct interviews at
business units, and consolidated subsidiaries, inspect business
premises, and through conduct audits concerning the overall
execution of business of the directors and executive officers.
The Board of Corporate Auditors as a rule meets once a month
to receive reports, consult, and make decisions on important
matters related to audits stipulated in laws, regulations, and
the Articles of Incorporation. The Company has established
the Corporate Audit Office as a dedicated organization to assist
with the duties of the corporate auditors.
Internal Auditing
To ensure the appropriateness of business operations and in-
crease management efficiency, the Company has assigned em-
ployees to the Internal Auditing Office, an organization that is
in a position of neutrality with respect to business execution.
Furthermore, we have established a dedicated internal audit-
ing organization pertaining to our nuclear and thermal power
generation facilities and power transmission network. We are
also auditing the quality assurance system for safety programs
and the execution of these programs.
Internal Controls (Financial Reporting)
Kyushu Electric Power strictly enforces proper internal controls
for financial reporting and shows its commitment to highly reli-
able reporting by maintaining a system that can take necessary
corrective actions.
(Note) Pursuant to the Financial Instruments and Exchange Act, the Company has evaluated the ef-
fectiveness of the operation of its internal controls for financial reporting and received a clean opin-
ion from an audit by independent auditors.
Risk Management
For the risks that pose a serious threat to our business opera-
tions, our approach is to periodically identify, classify and
evaluate risks according to our risk management policy. We
then identify the most important risks for each department and
the company as a whole. Each department and worksite incor-
porates countermeasures against the risks identified through
this process as well as against other risks relating to specific
projects, into their business plans and engages in appropriate
risk management.
We have also started a response system and set up proce-
dures in advance to respond promptly and accurately to natu-
ral disasters and other crises exerting a serious impact on our
business and the community whenever they arise and conduct
regularly scheduled training on this system.
Audit
Internal Audit Report
Submission
Report
Monitoring
compliance
Collaboration
Policies/Plan
Policies/Plan
Proposal/Report
Comments
Report
Control/Assign
Attaching discussion report of
important matter
Report
Election/
Dismissal/
Supervision
Election/Dismissal
Financial audit
Election/Dismissal
Election/Dismissal
Consent of election and dismissal
Judgment of audit validity
Information Exchange/Liaison and Coordination
Report
Assign
Accounting Auditor
Environment
Committee
Kyushu Electric Power
Environmental
Adviser Meeting
Executive Vice President and
Executive Officer for each Business
Head Offices •Business Operations
Group Management Conference
(Group CSR Promotion Committee/Group environmental management promotion committee)
Compliance Committee
CSR Promotion Committee
Board of Corporate
Auditors
Corporate
Audit Office
President
General Meeting of Shareholders
Board of Directors
Corporate Management Committee
Internal Audit System29CSR Management
Management relies strongly on the CSR report, which lays out
the Kyushu Electric Power Group’s entire set of CSR programs
and communicates them to our numerous stakeholders starting
with our customers. We use this report to solicit feedback for
management through opinion surveys (receiving about 900 re-
sponses in fiscal 2008) and have developed a CSR management
cycle to reflect these opinions in management and business op-
erations.
The Company has put in place a structure to advance CSR
management, appointed a corporate officer for CSR, and started
the CSR Promotion Committee chaired by the president. The
committee draws up a CSR Action Plan and reviews and dis-
cusses issues related to the CSR report.
In this way, we strive to take CSR to a
higher level.
To allow CSR to penetrate the entire
group, we have also established the
Group CSR Promotion Subcommittee
which familiarizes employees with the
CSR Action Plan and, based on that,
solidifies CSR through Plan-Do-Check-
Action (PDCA) quality initiatives and
similar efforts.
Information Disclosure
Kyushu Electric Power pursues management transparency that
will increase society’s trust in the Company. To this end, we
aim to make information disclosure easy to understand, on-
time, and precise in accordance with the Information Disclosure
Preparedness Program set up in 1999. Except for information
that cannot be disclosed due to confidentiality obligations, we
make active use of press releases, utilize the company website,
and actively disclose information of interest not only about
management and corporate public relations, but also about any
problems that may occur at our nuclear and thermal power gen-
eration facilities.
When a natural disaster like a typhoon causes a power out-
age, we quickly gather information about the power outage
and then provide the pertinent data in response to customer
queries, and releasing it through the media, our website and
through our mobile phone e-mail service power outage notifi-
cations. Starting in June 2009, we are providing information by
e-mail on operating conditions at nuclear power stations in the
aftermath of large earthquakes—one more way in which we are
improving information provision from a customer service point
of view.
In February 2009, the Company reexamined its rules for
releasing information of any misconduct that may occur at Ky-
ushu Electric Power and its group companies, so to make the
release of information more prompt and accurate than before,
in order to avoid the harm to our customers and the community
that withholding information can engender.
Corporate Social Responsibility
The Kyushu Electric Power Group conducts its business from a CSR point of view in the medium-term management policy
that we have recently laid out. To promote sustainable development with society, we will remain steadfast in pursuit of busi-
ness activities that show a high regard for the environment and harmonious coexistence with the local community across
all segments of our business. We shall make CSR present in our entire business.
Board of
Directors
Environment
Committee
Group Business Promotion Committee
Group business promotion, etc.
Group Human Resources Committee
Group joint training programs, etc.
Group Environmental Management Promotion Committee
Planning of group environmental activities, etc.
Group Overseas Business Promotion Committee
Examination of overseas business projects, etc.
Group Technology Development Promotion Committee
Technology development activities, etc.
Group General Affairs/Planning Department Meeting
Matters relating to group management, etc.
PresidentCSRPromotion
Committee
Corporate
Management
Committee
Group
Management
Conference
Compliance
Committee
Group CSR Promotion Committee
Compliance, etc.Co30
Initiatives to Increase Compliance
The Company has established a Compliance Committee under
the oversight of the Board of Directors. The Committee meets
regularly twice per year, where it reviews and discusses plans
and proposed measures pertaining to compliance management
and then monitors the status of their implementation. The Com-
pliance Committee is directed by the president and is made up
of the company officers, the chairperson of the company’s labor
union, and three outside experts and makes every effort to en-
sure transparency and objectivity.
We are taking strides to improve awareness of compliance
throughout the Company. We have developed a Code of Con-
duct to provide guidance on proper judgment as well as Com-
pliance Action Guidelines that state specifically the points to
consider in our relationship with all stakeholders, including our
customers and our shareholders and other investors. We have
also designated the head of each business organization that car-
ries out compliance-related activities as the person responsible
for compliance. In light of the diverse range of legal issues we
encounter, we established a Legal Office in the General Affairs
Department in July 2008.
We are providing the information to make everyone familiar
with the action plan of the Group CSR Promotion Committee
and have set up internal and external Compliance Consultation
Desks that cover compliance through an internal notification
system and are monitoring compliance through a compliance
awareness survey for group employees.
Actual Compliance Violations and Measures to
Prevent Recurrence
In October 2008, the Company received a cease and desist
order from the Japan Fair Trade Commission concerning pam-
phlets for the Company’s All-Electric Housing program and
found Kyushu Electric Power to be in violation of the Act
against Unjustifiable Premiums and Misleading Representations.
The pamphlets in question showed a comparison of an all-
electric housing and one with mixed use of gas and electricity
and stated that savings on utilities would amount to 100,000円
over the course of a year and extend to 3,000,000円 over 30
years and, further, that 30-year savings would increase to
3,500,000円 if an All-Electric Housing Loan was used. The direc-
tive stated that pamphlet details misrepresented the facts to the
customers by not taking into account the cost of initial invest-
ments and their subsequent replacement.
This misconduct resulted from 1) a lack of consideration for
what customers would consider troublesome or detrimental, 2)
insufficient knowledge and information about mandatory laws
and regulations for business operations that was not thoroughly
conveyed, and 3) an incomplete follow-up system and training.
We immediately collected the pamphlets covered by the di-
rective and corrected the information.
We are taking the opportunity of this cease and desist order
to thoroughly reinforce compliance awareness and to beef up
internal inspections of advertising materials as we strengthen
measures to prevent recurrence and to make proper advertising
presentations.
Compliance
Kyushu Electric Power Group seeks to be recognized as a corporation enjoying the trust of society, and has been rolling out
compliance management to further this purpose. To ensure the peace of mind of customers and the residents of the region
we serve, Kyushu Electric Power rigorously complies with the law and engages in sincere, fair business activities in accor-
dance with the principles of business ethics.
Report
Submission
Consultation Consultation Consultation
Chairman: President
Members: Directors, Labor Union Chairperson, External professionals (Three people)
[ Corporate Auditor ]
Board of Directors (Kyushu Electric Power)
Compliance Committee
Report
Consultation
Responsible person for Compliance:
Managing directors
Chairman: Chief of General Affairs Dept.
Members: Each group company
(person responsible for compliance)
Group CSR Promotion Committee
Each Group Company
Responsible person for compliance:
• Head of each department at head office
• Head of each branch office, etc.
Members
Compliance Subcommittee
Operational Units
(each department at head office, branch office, etc.)
Collaboration
Consultation Desks
Consultation Desks
Compliance
Consultation Desks
(internal • external)
President
Employees
Directors
Business
Partners
Each Group Company
Each Group Company
Compliance
Consultation Desks
Responsible Person for
Promotion of Compliance
President
Employees
Directors31The Kyushu Electric Power Group Environmental Charter
We have established the Kyushu Electric Power Group Envi-
ronmental Charter to clarify our stance toward environmental
management as a unified group. Under this charter, we develop
and release an annual Kyushu Electric Power Environmental Ac-
tion Plan that will be carried out by all employees in pursuit of
sound environmental management. We also release an annual
Environmental Action Report on the status of our environmental
initiatives.
Environmental Action Plan
Measures to Address Global Environmental Problems
By addressing the supply-side, by working with our customers
to address the demand side, and by putting the Kyoto mecha-
nism into practice, we are taking on the reduction of green-
house gas emissions while looking directly at the future.
Measures to Create a Recycling Society
Our policy of "zero emissions" sets no limit to how low we can
reduce the final volume of waste emissions that occur in our
business activities, and is being carried out in the form of the
3Rs: Reduce, Reuse, and Recycle.
Harmonious Coexistence with the Local Environment
We strive to preserve and live together with the local environ-
ment through proper control of chemical substances and har-
monizing operations with the surrounding environs as we seek
to perfect environmental conservation and wise management in
our facilities operations.
Partnership with Society
We are pursuing cooperation with society through environmen-
tal initiatives like energy and environmental education for the
next generation and tree-planting.
Environmental Management
We endeavor to continually reduce our environmental burden
by engaging in appropriate operation of an environmental man-
agement system (EMS) and putting environmental accounting
into practice in order to spread environmental programs effec-
tively and efficiently.
Environmental Management
To continue to contribute to the development of a sustainable society in the years ahead, the Kyushu Electric Power Group
mounts a united effort to implement environmental management that achieves balance between business activities and the
natural environment.
・Control of Greenhouse Gases Emissions on both Sides of
Electricity supply and use
・Appropriate Correspondence to Kyoto Protocol and
Post Kyoto Protocol, Etc.
・Thorough Collection of Restricted Chlorofluorocarbon
・Contribution to International Global Warming Measures・Working Towards Zero Waste Emissions・Promotion of Green Procurement・Promotion of Communications
・Development and Support of
Environmental Practices in Our Region
・Development of Energy and
Environmental Education for the
Next Generation・Appropriate Operation of Environmental
Management System・Enhancing Environmental Efficiencies・Heightening of Employees’ Awareness for Environment・Environmental Management on a
Kyushu Electric Power Group Basis・Environmental Preservation Re・Appropriate Management of P・Harmonizing with the Surroun
・Research and Development to
・Conservation of Biodiversity・Environmental Preservation Related to
Power Plants and Transformation Stations・Appropriate Management of PCB and Asbestos・Harmonizing with the Surrounding Environment
・Research and Development to
Reduce Environmental Impact
・Conservation of Biodiversity
Initiatives
Dealing
with Global
Environmental
Issues
Initiatives
towards Forming
a Recycling-
oriented
Society
Harmonizing
with Society
Promotion of
Environmental
Management
Coexistence
with the Global
Environment
Contributing to Building a
Sustainable Society
Conciliating Business
Activities and the
Environment
Overall Composition
Environmental Conduct Policies
The basic long-term policy for
carrying out environmental Activities
under the Kyushu Electric Power
Group Environmental Charter
(stands on top of these five pillars)
Environmental Objectives
Environmental target values for
the final fiscal year of the mid-term
management plan (fiscal 2011) and for
the years leading up to 2011
Environmental Action Plan
A concrete action plan that each site
and person must implement under
our environmental conduct policies
to meet the target environmental
objectives
FY 2009 Environment Action Plan
Kyushu Electric Power Group Environmental Charter
Pursuing environmentally friendly corporate activities
The Kyushu Electric Power Group undertakes initiatives to
preserve and harmonize with the global environment to con-
tribute to the development of a sustainable society.
1. We strive to properly address environmental issues and
use resources effectively while pursuing business
activities that lead toward the future.
2. We work with society to engage in initiatives that
enhance the environment.
3. We foster interest in conservation in keeping with our
desire to earn customer trust for the Group.
4. We proactively disclose environmental information when
communicating with society.
Environmental Conduct Policies32Board of Directors and Auditors
(As of June 26, 2009)
Chairperson
Shingo Matsuo
President
Toshio Manabe
Executive Vice
President
Yasumichi Hinago
Executive Vice
President
Mamoru Dangami
Executive Vice
President
Masayoshi Nuki
Executive Vice
President
Yoshinori Fukahori
Chairperson
Shingo Matsuo
President
Toshio Manabe
Executive Vice
Presidents
Yasumichi Hinago
Mamoru Dangami
Masayoshi Nuki
Yoshinori Fukahori
Directors
Kazutami Oyama
Toshihiko Hirano
Haruyoshi Yamamoto
Kenichi Fujinaga
Satoshi Mizobe
Masatoshi Morooka
Masahiro Kajiwara
Michiaki Uriu
Kenji Tsugami
Akiyoshi Watanabe
(Outside Director)
Senior Corporate Auditors
Tokihisa Ichinose
Kenji Hokamura
Corporate Auditors
Tsutomu Zenpuku
Kyousuke Takaishi
(Outside Corporate Auditor)
Hirokazu Murayama
(Outside Corporate Auditor)
Keiko Hieda
(Outside Corporate Auditor)3334
Financial Information
35 Consolidated Five-Year Financial Summary
36 Management Discussion and Analysis
39 Business Risk Factors
41 Consolidated Balance Sheets
43 Consolidated Statements of Income
44 Consolidated Statements of Changes in Equity
45 Consolidated Statements of Cash Flows
46 Notes to Consolidated Financial Statements
57 Independent Auditors’ Report
58 Non-consolidated Five-Year Financial Summary
59 Non-consolidated Balance Sheets
61 Non-consolidated Statements of Income
62 Overview of Power Generation Facilities
63 Major Subsidiaries and Affiliated Companies
CONTENTS35Consolidated Five-Year Financial Summary
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31,
Millions of Yen
(except for per share data)
Thousands of U.S. Dollars
(except for per share data)
2009 2008 2007 2006 2005 2009
For the Year:
Operating revenues \ 1,524,193 \ 1,482,352 \ 1,408,328 \ 1,401,752 \ 1,408,728 $ 15,511,836
Electric 1,398,577 1,363,424 1,307,737 1,311,996 1,320,581 14,233,432
Other 125,616 118,928 100,591 89,756 88,147 1,278,404
Operating expenses 1,439,470 1,376,811 1,253,155 1,230,467 1,194,993 14,649,603
Electric 1,317,216 1,260,616 1,155,414 1,140,797 1,107,744 13,405,414
Other 122,254 116,195 97,741 89,670 87,249 1,244,189
Interest charges 35,771 36,938 38,354 41,130 49,522 364,044
Income before income taxes and
minority interests 55,859 72,463 112,887 120,790 146,797 568,482
Income taxes 21,481 29,853 46,075 43,038 57,858 218,614
Net income 33,992 41,727 65,968 76,850 89,288 345,939
Per share of common stock
(yen and U.S. dollars):
Basic net income \ 71.84 \ 88.19 \ 139.37 \ 161.67 \ 187.91 $ 0.73
Cash dividends applicable to the year 60.00 60.00 60.00 60.00 60.00 0.61
At year-end:
Total assets \ 4,110,878 \ 4,059,775 \ 4,038,839 \ 4,102,319 \ 4,049,713 $ 41,836,739
Net property 3,080,447 3,109,293 3,140,200 3,217,982 3,300,740 31,349,959
Long-term debt, less current portion 1,811,744 1,712,949 1,689,107 1,724,179 1,739,660 18,438,266
Equity 1,072,375 1,084,213 1,092,601 1,052,785 979,252 10,913,647
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 98円.26 = U.S. 1,ドル the approximate rate of exchange at March 31, 2009.)36Operating Results
In the year ended March 31, 2009 (fiscal 2008), Kyushu Electric Power achieved
2.8% year on year growth in consolidated operating revenues to 1,524円.1 billion, as
increased electric rates for lighting and power arising from fuel cost adjustments offset
lower sales volume in the electric power segment.
With regard to expenditures, operating expenses increased by 4.6% to 1,439円.4
billion. The increase is attributable to such causes as higher rates for purchased power
and rising fuel expenses resulting from the sharp rise in fuel costs in the first half of the
year. As a result, operating income for the segment dropped by 19.7% to 84円.7 billion.
Other revenues fell by 7.3% from the previous year to 10円.4 billion. One primary
factor was the recording of 5円.4 billion in extraordinary income for a gain on sales of
investment securities, an entry that had been included under other revenues in the
previous year, which offset increases in proceeds from dividends and other increases.
In addition, other expenses increased by 0.6% year on year to 44円.6 billion, due to
factors like valuation losses on investment securities, which offset decreased interest
expenses and other decreased expenses.
As a result, ordinary revenues rose by 2.7% from the previous year to 1,534円.6 billion
but ordinary expenses increased even more, by 4.4% to 1,484円.1 billion, resulting in
30.3% year on year fall in ordinary income to 50円.4 billion for the fourth consecutive
year of ordinary income declines.
Net income dropped by 18.5% from the previous year to 33円.9 billion for the
fourth consecutive year on year decrease, causing net earnings per share to fall
16円.35 to 71円.84.
Summary
• Sales increase but income decline for the third consecutive year:
— Increase in electricity sales due to fuel cost adjustment system.
— 
Higher fuel costs and purchased power expenses due to soaring fuel prices, etc., in the first half of
fiscal 2008.03009001,5006001,200020601004080
’05 ’06 ’07 ’08 ’09
1,408.7
1,401.7
1,408.3
1,482.389.276.865.941.7
1,524.133.9(Billions of Yen)
Operating Revenues (Left) Net Income (Right)050150250100200
’05 ’06 ’07 ’08 ’09
213.7
171.2
155.1
105.5
159.9
125.2
118.572.384.750.4(Billions of Yen)
Operating Income Ordinary Income
(Millions of kWh) (Thousands of kW)
Peak Load (Right) General Demand (Left) Large-scale Industrial (Left)030,000
20,000
10,000
50,000
70,000
40,000
60,000013,000
12,000
11,000
15,000
17,000
14,000
16,000
’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09
53,310
54,632
55,334
56,318
20,318
19,754
14,417
15,365
16,362
15,346
15,560
16,094
15,890
16,807 16,934 16,978
20,619
19,993
56,684
58,982
60,765
60,706
62,873
25,209
61,859
24,024
20,584
21,217
22,191
23,693
Electricity Sales Volume (Millions of kWh) and Peak Load (Thousands of kW)
Management Discussion and Analysis37Segment Information (Before Elimination of Internal Transactions)
(1) Electric Power
Sales volume in the electric power segment slipped 1.6% from the previous year.
General demand including domestic lighting and commercial demand was impacted
by the combination of a cooler summer and warmer winter than the previous year,
which lowered demand for heating and cooling. Demand from large industrial users,
on the other hand, fell by 4.7%, as steep production cuts by the electrical equipment,
transport equipment and steel industries in the second half offset firm output from key
industries like transport equipment, chemicals and non-ferrous metal industries in the
first half. As a result, total sales volume fell by 2.5% year on year to 85.88 billion kWh.
On the supply side, our nuclear facilities (power generation) and other facilities
continued to operate steadily, allowing us to maintain reliable sources of electric power.
Analysis of the energy mix, including power generated by Kyushu Electric Power and
power purchased from other companies shows nuclear power to account for 41%,
thermal power for 51%, hydroelectric for 7%, and new energy sources for 1%.
Segment business performance shows that operating revenues rose by 2.6% from
the previous year to 1,400円.7 billion owing to increased rates for electric lighting and
power, while operating income dropped 21.4% to 74円.1 billion, due to increased fuel
expenses and purchase power costs.
(2) Energy-related Business
Operating revenues in the energy-related segment were up 6.9% year on year to
157円.2 billion owing to such factors as the addition of two consolidated subsidiaries at
the end of the second quarter of the previous year. Meanwhile, operating income fell
by 11.4% from the previous year to 7円.5 billion due to increased cost of sales related
to plant construction and other factors.
(3) IT and Telecommunications
Operating revenues increased by 4.9% year on year to 92円.7 billion. This increase is
attributable to a rise in the number of broadband service lines in operation. Operating
income improved 2円.4 billion over the previous year to an operating profit of 0円.7 billion.03009001,5006001,20004012020080160
’06 ’09
’07 ’08
1,310.194.31,365.774.11,400.7
144.2
1,314.3
162.9
Sales (Left) Operating Income (Right)
Electric Power (Billions of Yen)08016040120036129
’06 ’09
’07 ’08
128.38.5147.07.5157.26.8123.84.6Sales (Left) Operating Income (Right)
Energy-related Business (Billions of Yen)-20200601004080-20261048
’06 ’09
’07 ’0876.473.7-1.60.788.492.7-1.3-0.6
Sales (Left) Operating Income (Right)
IT and Telecommunications (Billions of Yen)
(Billions of Yen) (Billions of Yen)
Electric Power (Left) Other (Right)03009001,5006001,2000309015060120
’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09
1,392.1
1,410.0
1,381.4
1,350.670.636.438.376.6
1,308.8
1,320.5
1,311.9
1,307.7
1,363.4
118.9
1,398.5
125.682.888.189.7100.5
Trends of Operating Revenues by Segments (after eliminating internal transactions) (Billions of Yen)38(4) Other Activities
Other business showed 1.7% year on year decrease in operating revenues to 24円.4
billion, while operating income fell by 52.5% to 1円.6 billion as a result of additional
expenses for reconstruction of rental buildings and other factors.
Financial Position
(1) Cash Flows
Cash flows from operating activities fell by 7.6% from the previous year to inflow of
247円.0 billion. The primary causes were increased fuel expenses and purchased
power costs in the Electric Power Business.
Cash flows for investment activities increased by 11.2% year on year to a 259円.8
billion outflow. This increase is attributable to capital investments, purchase of investment
securities, and other factors.
Cash flows from financing activities amounted to 42円.0 billion inflow, an increase of
68円.4 billion over the previous year.
Based on the figures above, cash and cash equivalents on March 31, 2009, stood
at 88円.1 billion, 29円.3 billion increase over the end of the previous year.
(2) Assets, Liabilities and Net Assets
Total assets at the end of the year in review were 4,110円.8 billion, 1.3% increase since
the end of the business year. Major factors behind this rise include reserve funds for
reprocessing of irradiated nuclear fuel for fixed assets and cash and cash equivalents
for current assets.
Total liabilities at the end of the year under review increased by 2.1% to 3,038円.5
billion owing to such factors as an increase in interest-bearing debt, which offset such
declining factors as decreases in notes and accounts payable and the liability for
accrued retirement benefits. Outstanding interest-bearing debt increased 70円.5 billion
to 2,110円.6 billion.
Although the Company recorded a net profit, net assets declined by 1.1% from the
end of the previous year to 1,072円.3 billion owing to cash dividends and decrease in
unrealized gain on available-for-sale securities. The equity ratio was 25.7%.01030200264
’06 ’09
’07 ’0825.93.424.81.624.44.220.13.0
Sales (Left) Operating Income (Right)
Other Activities (Billions of Yen)0261048
’05 ’06 ’07 ’08 ’099.47.66.23.93.2ROE (%)01243’05 ’06 ’07 ’08 ’093.32.72.41.71.3ROA (%)
(Billions of Yen) (%)
Total Assets (Left) Interest-bearing Debt (Left) Shareholders’ Equity (Left) Equity Ratio (Right)01,000
3,000
5,000
2,000
4,0000618301224
’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09
4,141.7
4,166.4
4,290.1
4,204.5
2,503.7
2,692.5
2,603.9
2,699.6
4,114.3
4,049.7
4,102.3
4,038.8
4,059.7
2,040.0
2,336.2
2,139.4
2,104.9
2,031.7
840.2
725.5
810.0
824.9
1,067.0
4,110.8
2,110.6
1,054.7
910.8
979.2
1,052.7
1,081.617.519.4 19.220.022.124.225.7
26.8 26.3 25.7
Consolidated Interest-bearing Debt and Equity Ratio (Billions of Yen, %)39The sales volume in the electric power business reflects economic conditions and seasonal changes in temperatures. These factors
may have a material impact on the results and financial condition of the Kyushu Electric Power Group.
Fuel expenses in electricity business fluctuate as a result of trends in CIF prices and in the foreign exchange markets because we
procure sources of fuel for thermal power generation including liquefied natural gas (LNG) and coal from overseas.
However, fluctuations in fuel prices are reflected in electric rates through the fuel cost adjustment system, which in our opinion
helps to limit the impact of fuel price volatility on the Kyushu Electric Power Group.
The uncertainties in the long-term prospects of nuclear fuel cycle operations pose a risk, but operator risk is being reduced through
measures proposed by the Japanese government. However, Group performance could be affected by the burden of increased
costs based on revised cost estimates for future expenses.
Business Risk Factors
The following is a list of some significant risk factors that may have an effect on the operating results, financial
position, and other aspects of the Group (consolidated). The statements made in this report regarding our future
operations are forward-looking statements made in light of information available as of June 26, 2009.
Risks Related to Economic Conditions and Weather Conditions1Risks Related to the Fluctuation of Fuel Prices2Risks Related to Costs of Nuclear Fuel Cycle Operations340
The Kyushu Electric Power Group is enhancing its revenue basis by utilizing the group’s management resources and proactively
developing new business area beyond electricity business. In the business operation, we put emphasis on the profitability and work
to improve efficiency while pursuing the growth. In case securing the planned profits cannot be achieved due to the worsening
business conditions, the Kyushu Electric Power Group’s performance may be affected.
The Kyushu Electric Power Group’s balance of interest-bearing debt as of the end of March 2009 is 2,110.6 billion yen, which
accounts for 51% of total assets of the group. Future changes in interest rates have potential to affect the Kyushu Electric Power
Group’s financial condition.
However, 94% of outstanding interest-bearing debt comprises long-term debt, and most of these bear interest at fixed rates. The
impact of fluctuating interest rates on Kyushu Electric Power Group is therefore viewed as limited.
The Kyushu Electric Power Group has established strict internal frameworks to manage personal information and to secure
information security. Additionally, we have implemented thorough protection of personal information by establishing internal policies
and guidelines on handling information as well as familiarizing employees with the handling procedures. However, in case of the
leaking of personal information, the Kyushu Electric Power Group’s operation may be affected.
To ensure a stable supply of electricity to our customers, the Kyushu Electric Power Group implements inspection and maintenance
of the facilities systematically to prevent any trouble from occurring. However, large-scaled natural disasters such as typhoons,
torrential rains and earthquakes as well as unexpected accidents and illicit acts have the potential to affect the Kyushu Electric Power
Group’s operations.
The Kyushu Electric Power Group is working to establish a crisis management structure. However, in case of an inappropriate
handling of unexpected situation, which brings serious damage to the Kyushu Electric Power Group’s reputation, the Kyushu
Electric Power Group’s operation may be affected.
Additionally, a tightening of environmental regulations related to global warming has a potential to affect the Kyushu Electric
Power Group’s operations.
Risks Related to Businesses Other than Electricity4Risks Related to Interest Rates5Risks Related to the Leaking of Personal Information6Risks Related to Natural Disasters741
Consolidated Balance Sheets
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
March 31, 2009 and 2008
Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2009 2008 2009
ASSETS
PROPERTY (Note 3):
Plant and equipment \ 9,123,680 \ 8,967,001 $ 92,852,432
Construction in progress 212,169 229,449 2,159,261
Total 9,335,849 9,196,450 95,011,693
Less-
Contributions in aid of construction 148,728 143,095 1,513,617
Accumulated depreciation 6,106,674 5,944,062 62,148,117
Total 6,255,402 6,087,157 63,661,734
Net property 3,080,447 3,109,293 31,349,959
NUCLEAR FUEL 264,205 250,845 2,688,836
INVESTMENTS AND OTHER ASSETS:
Investment securities (Note 4) 82,988 109,279 844,576 Investments in and advances to non-consolidated subsidiaries and
affiliated companies
69,618 54,553 708,508
Reserve funds for reprocessing of irradiated nuclear fuel (Note 8) 136,012 104,740 1,384,205
Deferred tax assets (Note 10) 117,744 115,151 1,198,290
Other assets 34,405 28,912 350,142
Total investments and other assets 440,767 412,635 4,485,721
CURRENT ASSETS:
Cash and cash equivalents 88,124 58,767 896,845
Receivables 126,857 128,456 1,291,034
Allowance for doubtful accounts (1,286) (1,181) (13,088)
Inventories, principally fuel 76,481 65,115 778,354
Deferred tax assets (Note 10) 16,285 15,943 165,734
Prepaid expenses and other 18,998 19,902 193,344
Total current assets 325,459 287,002 3,312,223
TOTAL \ 4,110,878 \ 4,059,775 $ 41,836,739
See notes to consolidated financial statements.42Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2009 2008 2009
LIABILITIES AND EQUITY
LONG-TERM LIABILITIES:
Long-term debt, less current portion (Note 6) \ 1,811,744 \ 1,712,949 $ 18,438,266
Liability for employees’ retirement benefits (Note 7) 137,684 150,513 1,401,221
Reserve for reprocessing of irradiated nuclear fuel (Note 8) 366,437 362,826 3,729,259
Reserve for decommissioning of nuclear power units 155,838 147,529 1,585,976
Other 34,666 34,631 352,799
Total long-term liabilities 2,506,369 2,408,448 25,507,521
CURRENT LIABILITIES:
Current portion of long-term debt (Note 6) 169,264 171,616 1,722,614
Short-term borrowings (Note 9) 133,645 143,457 1,360,116
Commercial paper 12,000
Notes and accounts payable (Note 14) 92,157 113,161 937,889
Accrued income taxes 3,220 4,289 32,770
Accrued expenses 86,632 79,420 881,661
Other 47,216 43,171 480,521
Total current liabilities 532,134 567,114 5,415,571
COMMITMENTS AND CONTINGENCIES (Note 16)
EQUITY (Note 11):
Common stock, authorized, 1,000,000,000 shares;
issued, 474,183,951 shares in 2009 and 2008
237,305 237,305 2,415,072
Capital surplus 31,147 31,141 316,986
Retained earnings 775,130 769,542 7,888,561
Unrealized gain on available-for-sale securities 13,099 28,004 133,309
Deferred gain on derivatives under hedge accounting 1,393 3,332 14,177
Foreign currency translation adjustments (1,341) (282) (13,648)
Treasury stock-at cost 1,024,166 shares in 2009 and 1,028,013 shares in 2008 (2,000) (1,995) (20,354)
Total 1,054,733 1,067,047 10,734,103
Minority interests 17,642 17,166 179,544
Total equity 1,072,375 1,084,213 10,913,647
TOTAL \ 4,110,878 \ 4,059,775 $ 41,836,73943Consolidated Statements of Income
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31, 2009 and 2008
Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2009 2008 2009
OPERATING REVENUES:
Electric \ 1,398,577 \ 1,363,424 $ 14,233,432
Other 125,616 118,928 1,278,404
Total operating revenues 1,524,193 1,482,352 15,511,836
OPERATING EXPENSES (Note 12):
Electric 1,317,216 1,260,616 13,405,414
Other 122,254 116,195 1,244,189
Total operating expenses 1,439,470 1,376,811 14,649,603
OPERATING INCOME 84,723 105,541 862,233
OTHER EXPENSES (INCOME):
Interest charges 35,771 36,938 364,044
Gain on sales of investment securities (5,400) (1,835) (54,956)
Other-net (1,507) (1,934) (15,337)
Total other expenses-net 28,864 33,169 293,751
INCOME BEFORE INCOME TAXES AND REVERSAL OF RESERVE
FOR FLUCTUATIONS IN WATER LEVEL AND MINORITY INTERESTS
55,859 72,372 568,482
REVERSAL OF RESERVE FOR FLUCTUATIONS IN WATER LEVEL (91)
INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS 55,859 72,463 568,482
INCOME TAXES (Note 10):
Current 14,587 23,830 148,453
Deferred 6,894 6,023 70,161
Total income taxes 21,481 29,853 218,614
INCOME BEFORE MINORITY INTERESTS IN NET INCOME OF
CONSOLIDATED SUBSIDIARIES
34,378 42,610 349,868
MINORITY INTERESTS IN NET INCOME OF CONSOLIDATED SUBSIDIARIES (386) (883) (3,929)
NET INCOME \ 33,992 \ 41,727 $ 345,939
Yen U.S. Dollars
PER SHARE OF COMMON STOCK (Note 2. r.):
Basic net income \ 71.84 \ 88.19 $ 0.73
Cash dividends applicable to the year 60.00 60.00 0.61
See notes to consolidated financial statements.44Consolidated Statements of Changes in Equity
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31, 2009 and 2008
Thousands of Shares / Millions of Yen
Common Stock
Capital
Surplus
Retained
Earnings
Unrealized
Gain on
Available-for-
sale Securities
Deferred Gain
on Derivatives
under Hedge
Accounting
Foreign
Currency
Translation
Adjustments
Treasury Stock
Total Minority
Interests Total Equity
Shares Amount Shares Amount
BALANCE AT APRIL 1, 2007 474,184 \ 237,305 \ 31,094 \ 756,406 \ 54,992 \ 3,865 \ (184) 999 \ (1,844) \ 1,081,634 \ 10,967 \ 1,092,601
Adjustment of retained earnings
for inclusion of companies
accounted for by the
equity method
(290) (290) (290)
Adjustment of retained earnings
for the merger of a non-
consolidated subsidiary with a
consolidated subsidiary
106 106 106
Net income 41,727 41,727 41,727
Cash dividends, 60円 per share (28,407) (28,407) (28,407)
Purchase of treasury stock 131 (391) (391) (391)
Disposal of treasury stock 47 (102) 240 287 287
Net change in the year (26,988) (533) (98) (27,619) 6,199 (21,420)
BALANCE AT MARCH 31, 2008 474,184 237,305 31,141 769,542 28,004 3,332 (282) 1,028 (1,995) 1,067,047 17,166 1,084,213
Net income 33,992 33,992 33,992
Cash dividends, 60円 per share (28,404) (28,404) (28,404)
Purchase of treasury stock 111 (276) (276) (276)
Disposal of treasury stock 6 (115) 271 277 277
Net change in the year (14,905) (1,939) (1,059) (17,903) 476 (17,427)
BALANCE AT MARCH 31, 2009 474,184 \ 237,305 \ 31,147 \ 775,130 \ 13,099 \ 1,393 \ (1,341) 1,024 \ (2,000) \
1,054,733 \ 17,642 \
1,072,375
Thousands of U.S. Dollars (Note 1)
Common
Stock
Capital
Surplus
Retained
Earnings
Unrealized
Gain on
Available-for-sale
Securities
Deferred Gain
on Derivatives
under Hedge
Accounting
Foreign
Currency
Translation
Adjustments
Treasury
Stock Total Minority
Interests Total Equity
BALANCE AT MARCH 31, 2008 $ 2,415,072 $ 316,925 $ 7,831,691 $ 284,999 $ 33,910 $ (2,870) $ (20,303) $ 10,859,424 $ 174,699 $ 11,034,123
Net income 345,939 345,939 345,939
Cash dividends, 0ドル.61 per share (289,069) (289,069) (289,069)
Purchase of treasury stock (2,809) (2,809) (2,809)
Disposal of treasury stock 61 2,758 2,819 2,819
Net change in the year (151,690) (19,733) (10,778) (182,201) 4,845 (177,356)
BALANCE AT MARCH 31, 2009 $ 2,415,072 $ 316,986 $ 7,888,561 $ 133,309 $ 14,177 $ (13,648) $ (20,354) $ 10,734,103 $ 179,544 $ 10,913,647
See notes to consolidated financial statements.45Consolidated Statements of Cash Flows
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31, 2009 and 2008
Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2009 2008 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Income before income taxes and minority interests \ 55,859 \ 72,463 $ 568,482
Adjustments for:
Income taxes-paid (15,946) (31,369) (162,284)
Depreciation and amortization 252,431 253,370 2,569,011
Reversal of liability for employees’ retirement benefits (12,829) (28,405) (130,562)
Provision for (reversal of) reserve for reprocessing of irradiated nuclear fuel 3,611 (8,989) 36,749
Provision for reserve for decommissioning of nuclear power units 8,309 21,357 84,561
Loss on disposal of plant and equipment 9,537 8,050 97,059
Reversal of reserve for fluctuations in water level (91)
Gain on sales of investment securities (5,400) (1,835) (54,956) Changes in assets and liabilities, net of effects from newly consolidated subsidiaries
and merger of a non-consolidated subsidiary with a consolidated subsidiary:
Increase in reserve funds for reprocessing of irradiated nuclear fuel (31,272) (34,658) (318,258)
Decrease (increase) in trade receivables 4,315 (8,055) 43,914
Increase in inventories (11,366) (13,194) (115,673)
Increase (decrease) in trade payables (23,117) 19,671 (235,263)
Other-net 12,963 19,195 131,926
Total adjustments 191,236 195,047 1,946,224
Net cash provided by operating activities 247,095 267,510 2,514,706
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures including nuclear fuel (258,530) (242,220) (2,631,081)
Payments for investments and advances (20,064) (8,165) (204,193)
Proceeds from sales of investment securities and collections of advances 10,246 7,840 104,274 Proceeds from acquisition of additional interests of subsidiaries
which caused initial consolidation, net of cash acquired (Note 13) 3,211
Other-net 8,514 5,747 86,648
Net cash used in investing activities (259,834) (233,587) (2,644,352)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of bonds 204,380 139,452 2,079,992
Repayments of bonds and notes (100,000) (127,710) (1,017,708)
Proceeds from long-term bank loans 61,778 63,784 628,720
Repayments of long-term bank loans (74,322) (83,994) (756,381)
Net increase (decrease) in short-term borrowings (9,812) 6,067 (99,858)
Net increase (decrease) in commercial paper (12,000) 5,000 (122,125)
Cash dividends paid (28,413) (28,391) (289,162)
Other-net 479 (579) 4,875
Net cash provided by (used in) financing activities 42,090 (26,371) 428,353
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS (40) (64) (407)
NET INCREASE IN CASH AND CASH EQUIVALENTS 29,311 7,488 298,300
CASH AND CASH EQUIVALENTS OF NEWLY CONSOLIDATED SUBSIDIARIES 537
CASH AND CASH EQUIVALENTS OF A NON-CONSOLIDATED SUBSIDIARY
MERGED WITH A CONSOLIDATED SUBSIDIARY 46 70 468
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 58,767 50,672 598,077
CASH AND CASH EQUIVALENTS AT END OF YEAR \ 88,124 \ 58,767 $ 896,845
See notes to consolidated financial statements.46Notes to Consolidated Financial Statements
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31, 2009 and 2008
The accompanying consolidated financial statements have been
prepared in accordance with the provisions set forth in the Japanese
Financial Instruments and Exchange Act and the Electricity Business
Act and their related accounting regulations. Especially accounting
related to the nuclear power generation is regulated by the above
accounting regulations which are dependent on a governmental
long term nuclear energy policy. Kyushu Electric Power Company,
Incorporated (the "Company") and its domestic consolidated
subsidiaries maintain their accounts and records in accordance with
the provisions set forth in the Companies Act of Japan (the "Companies
Act") and in conformity with accounting principles generally accepted
in Japan ("Japanese GAAP"), which are different in certain respects as
to application and disclosure requirements of International Financial
Reporting Standards.
In preparing these consolidated financial statements, certain
reclassifications and rearrangements have been made to the
consolidated financial statements issued domestically in order to
present them in a form which is more familiar to readers outside
Japan. In addition, certain reclassifications have been made to the
consolidated financial statements for the year ended March 31, 2008
to conform to the classifications used in the consolidated financial
statements for the year ended March 31, 2009.
The United States dollar amounts included herein are provided
solely for the convenience of readers and are stated at the rate of
98円.26 = U.S. 1,ドル the approximate exchange rate prevailing on March
31, 2009. The translations should not be construed as representations
that the Japanese yen amounts could be converted into United States
dollars at that or any other rate.
a. Consolidation and Application of the Equity Method — The
consolidated financial statements as of March 31, 2009 include the
accounts of the Company and its thirty-three (thirty-four for 2008)
subsidiaries (together, the "Companies"). All significant intercompany
transactions and balances have been eliminated in consolidation.
Investments in nineteen (eighteen for 2008) non-consolidated
subsidiaries and thirteen (twelve for 2008) affiliated companies are
accounted for by the equity method.
The Company adopts the control or influence concept. Under the
concept, those companies in which the Company, directly or indirectly,
is able to exercise control over operations are treated as subsidiaries
and those companies over which the Companies have the ability to
exercise significant influence are treated as affiliated companies.
The difference between the cost of an acquisition and the fair value
of the net assets of the acquired subsidiary at the date of acquisition is
being amortized over a period of five years.
Consolidation of the remaining subsidiaries and the application
of the equity method to the remaining affiliated companies would
not have a material effect on the accompanying consolidated
financial statements.
b. Property and Depreciation — Property is stated at cost.
Contributions in aid of construction including those made by
customers are deducted from the cost of the related assets.
Depreciation is principally computed using the declining-balance
method based on the estimated useful lives of the assets. Depreciation
of easements is computed using the straight-line method based on the
estimated useful lives of the transmission lines.
c. Leases — In March 2007, the Accounting Standards Board of Japan
(the "ASBJ") issued ASBJ Statement No.13, "Accounting Standard for
Lease Transactions", which revised the previous accounting standard
for lease transactions issued in June 1993. The revised accounting
standard for lease transactions is effective for fiscal years beginning on
or after April 1, 2008.
Lessee
Under the previous accounting standard, finance leases that deem
to transfer ownership of the leased property to the lessee were to
be capitalized. However, other finance leases were permitted to
be accounted for as operating lease transactions if certain "as if
capitalized" information is disclosed in the note to the lessee’s financial
statements. The revised accounting standard requires that all finance
lease transactions should be capitalized to recognize lease assets
and lease obligations in the balance sheet. In addition, the revised
accounting standard permits leases which existed at the transition date
and do not transfer ownership of the leased property to the lessee to
be accounted for as operating lease transactions.
Lessor
Under the previous accounting standard, finance leases that deem to
transfer ownership of the leased property to the lessee were to be
treated as sales. However, other finance leases were permitted to be
accounted for as operating lease transactions if certain "as if sold"
information is disclosed in the note to the lessor’s financial statements.
The revised accounting standard requires that all finance leases that
deem to transfer ownership of the leased property to the lessee
should be recognized as lease receivables, and all finance leases that
deem not to transfer ownership of the leased property to the lessee
should be recognized as investments in lease. In addition, the revised
accounting standard permits leases which existed at the transition date
and do not transfer ownership of the leased property to the lessee to
be accounted for as operating lease transactions.
The Companies applied the revised accounting standard effective
April 1, 2008. In addition, the Companies accounted for leases which
existed at the transition date and do not transfer ownership of the
1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES47leased property to the lessee as operating lease transactions. The effect
of this change was immaterial.
All other leases are accounted for as operating leases.
d. Impairment of Fixed Assets — The Companies review their fixed
assets including leased property for impairment whenever events or
changes in circumstance indicate the carrying amount of an asset or
asset group may not be recoverable. An impairment loss would be
recognized if the carrying amount of an asset or asset group exceeds
the sum of the undiscounted future cash flows expected to result from
the continued use and eventual disposition of the asset or asset group.
The impairment loss would be measured as the amount by which the
carrying amount of the asset exceeds its recoverable amount, which is
the higher of the discounted cash flows from the continued use and
eventual disposition of the asset or the net selling price at disposition.
e. Amortization of Nuclear Fuel — Amortization of nuclear fuel is
computed based on the proportion of current heat produced to the
estimated total potential heat production over the estimated useful life
of the nuclear fuel.
f. Investment Securities — Investment securities are classified and
accounted for, depending on management’s intent, as follows:
i) held-to-maturity debt securities are stated at cost with discounts or
premiums amortized throughout the holding periods; ii) available-
for-sale securities, which are not classified as the aforementioned
securities and investment securities in non-consolidated subsidiaries
and affiliated companies, are stated at market value; and securities
without market value are stated at cost.
The Companies record unrealized gains or losses on available-for-
sale securities, net of deferred taxes, in equity presented as "Unrealized
gain on available-for-sale securities."
For other than temporary declines in fair value, investment securities
are written down to net realizable value by a charge to income.
g. Cash Equivalents — Cash equivalents are short-term investments
that are readily convertible into cash and that are exposed to
insignificant risk of changes in value. Cash equivalents include time
deposits and mutual funds investing in bonds that represent short-term
investments, all of which mature or become due within three months of
the date of acquisition.
h. Inventories — Prior to April 1, 2008, inventories were stated at
cost, principally determined by the average method. In July 2006,
the ASBJ issued ASBJ Statement No.9, "Accounting Standard for
Measurement of Inventories", which was effective for fiscal years
beginning on or after April 1, 2008. This standard requires that
inventories held for sale in the ordinary course of business be
measured at the lower of cost or net selling value, which is defined
as the selling price less additional estimated manufacturing costs and
estimated direct selling expenses. The replacement cost may be used
in place of the net selling value, if appropriate.
The Companies applied the new accounting standard for
measurement of inventories effective April 1, 2008. The effect of this
change was immaterial.
i. Foreign Currency Transactions — Receivables and payables
denominated in foreign currencies are translated into Japanese yen at
the rates in effect as of the each balance sheet date.
j. Foreign Currency Financial Statements — The balance sheet
accounts of foreign subsidiaries and foreign affiliated companies,
which are not consolidated but accounted for by the equity method,
are translated into Japanese yen at the current exchange rate as of
the balance sheet date except for equity, which is translated at the
historical rate.
Differences arising from such translation were shown as "Foreign
currency translation adjustments" in a separate component of equity.
k. Derivatives and Hedging Activities — The accounting standard
for derivative financial instruments and the accounting standard
for foreign currency transactions require that: a) all derivatives are
recognized as either assets or liabilities and measured at market
value, and gains or losses on the derivatives are recognized in the
income statement and b) for derivatives used for hedging purposes,
if derivatives qualify for hedge accounting because of high correlation
and effectiveness between the hedging instruments and the hedged
items, gains or losses on the derivatives are deferred until maturities of
the hedged transactions.
The long-term debt denominated in foreign currencies for which
the foreign exchange forward contracts are used to hedge the foreign
currency fluctuations are translated at the contracted rate, since such
treatment is also allowed to be incorporated under the standards if the
forward contracts qualify for hedge accounting.
The interest rate swaps which qualify for hedge accounting and
meet specific matching criteria are not remeasured at market value
but the differential paid or received under the swap agreements are
recognized in interest charges, which treatment is also allowed under
the standards.
l. Severance Payments and Pension Plans — The Companies
have unfunded retirement plans for most of their employees and
the Company and most of the consolidated subsidiaries also have
contributory funded defined benefit pension plans covering substantially
all of their employees.
Under the accounting standard for employees’ retirement benefits,
the amount of the liability for employees’ retirement benefits is
determined based on the projected benefit obligations and plan assets
of the pension fund at the end of the fiscal year.
m. Reserve for Reprocessing of Irradiated Nuclear Fuel — This
reserve is provided for reprocessing costs of irradiated nuclear fuel.
The annual provision is calculated in accordance with the accounting
regulations set by the Japanese Government applicable to electric
utility providers in Japan.48n. Reserve for Decommissioning of Nuclear Power Units — Provision
is made for future disposition costs of nuclear power units based on a
proportion of the current generation of electric power to the estimated
total life-time generation of electric power of each unit.
o. Income Taxes — The provision for income taxes is computed
based on the pretax income included in the consolidated statements of
income. The asset and liability approach is used to recognize deferred
tax assets and liabilities for the expected future tax consequences
of temporary differences between the carrying amounts and the tax
bases of assets and liabilities. Deferred taxes are measured by applying
currently enacted tax laws to the temporary differences.
p. Reserve for Fluctuations in Water Level — This reserve is
provided to stabilize the Company’s income level based on the
Electricity Business Act and related accounting regulations. This reserve
is recorded when the volume of water for generating hydroelectric
power is abundant and available for future power generation, and
reversed in years when there is an insufficient volume of water. Also this
reserve must be shown as a liability under the act and regulations.
q. Treasury Stock — The accounting standard for treasury stock
requires that where an affiliated company holds a parent company’s
stock, a portion which is equivalent to the parent company’s interest
in such stock should be presented as treasury stock as a separate
component of equity and the carrying value of the investment in the
affiliated company should be reduced by the same amount.
r. Net Income and Cash Dividends per Share — Basic earnings per
share ("EPS") is computed by dividing net income available to common
shareholders by the weighted-average number of common shares
outstanding during the year and diluted EPS reflects the potential
dilution that could occur if securities were exercised or converted into
common stock.
Diluted EPS is not disclosed for the years ended March 31, 2009
and 2008, because potentially dilutive securities were not outstanding.
Cash dividends per share represent actual amounts applicable to
earnings of the respective years.
s. Research and Development Costs — Research and development
costs are charged to income as incurred.
t. New Accounting Pronouncements
Construction Contracts — Under the current Japanese GAAP, either
the completed-contract method or the percentage-of-completion
method is permitted to account for construction contracts. In
December 2007, the ASBJ Issued a new accounting standard for
construction contracts. Under this new accounting standard, the
construction revenue and construction costs should be recognized by
the percentage-of-completion method, if the outcome of a construction
contract can be estimated reliably. When total construction revenue,
total construction costs and the stage of completion of the contract
at the balance sheet date can be reliably measured, the outcome of
a construction contract can be estimated reliably. If the outcome of a
construction contract cannot be reliably estimated, the completed-
contract method shall be applied. When it is probable that total
construction costs will exceed total construction revenue, an estimated
loss on the contract should be immediately recognized by providing
for loss on construction contracts. This standard is applicable to
construction contracts and software development contracts and
effective for fiscal years beginning on or after April 1, 2009.
Asset Retirement Obligations — On March 31, 2008, the ASBJ
published a new accounting standard for asset retirement obligations,
ASBJ Statement No.18 "Accounting Standard for Asset Retirement
Obligations" and ASBJ Guidance No.21 "Guidance on Accounting
Standard for Asset Retirement Obligations". Under this accounting
standard, an asset retirement obligation is defined as a legal obligation
imposed either by law or contract that results from the acquisition,
construction, development and the normal operation of a tangible
fixed asset and is associated with the retirement of such tangible
fixed asset. The asset retirement obligation is recognized as the sum
of the discounted cash flows required for the future asset retirement
and is recorded in the period in which the obligation is incurred if
a reasonable estimate can be made. If a reasonable estimate of the
asset retirement obligation cannot be made in the period the asset
retirement obligation is incurred, the liability should be recognized
when a reasonable estimate of asset retirement obligation can be
made. Upon initial recognition of a liability for an asset retirement
obligation, an asset retirement cost is capitalized by increasing the
carrying amount of the related fixed asset by the amount of the
liability. The asset retirement cost is subsequently allocated to expense
through depreciation over the remaining useful life of the asset.
Over time, the liability is accreted to its present value each period.
Any subsequent revisions to the timing or the amount of the original
estimate of undiscounted cash flows are reflected as an increase or
a decrease in the carrying amount of the liability and the capitalized
amount of the related asset retirement cost. This standard is effective
for fiscal years beginning on or after April 1, 2010 with early adoption
permitted for fiscal years beginning on or before March 31, 2010.49The breakdown of property as of March 31, 2009 and 2008 was as follows:
The carrying amounts and aggregate fair values of investment securities at March 31, 2009 and 2008 were as follows:
3. PROPERTY
4. INVESTMENT SECURITIES
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Costs:
Electric power production facilities:
Hydroelectric power \ 732,466 \ 715,625 $ 7,454,366
Thermal power 1,555,441 1,550,562 15,829,849
Nuclear power 1,552,174 1,528,525 15,796,601
Internal-combustion engine power 125,791 122,557 1,280,185
3,965,872 3,917,269 40,361,001
Transmission facilities 1,604,431 1,587,215 16,328,425
Transformation facilities 948,069 944,115 9,648,575
Distribution facilities 1,314,803 1,301,461 13,380,857
General facilities 373,580 365,862 3,801,954
Other electricity-related facilities 64,561 64,559 657,042
Other plant and equipment 852,364 786,520 8,674,578
Construction in progress 212,169 229,449 2,159,261
Total 9,335,849 9,196,450 95,011,693
Less contributions in aid of construction 148,728 143,095 1,513,617
Less accumulated depreciation 6,106,674 5,944,062 62,148,117
Carrying amount \ 3,080,447 \ 3,109,293 $ 31,349,959
Millions of Yen
March 31, 2009 Cost Unrealized Gains Unrealized Losses Fair Value
Securities classified as:
Available-for-sale:
Equity securities \ 14,460 \ 22,666 \ 1,183 \ 35,943
Debt securities 2,319 957 1,362
Other securities 557 2 64 495
Held-to-maturity 5,835 14 1,047 4,802
March 31, 2008
Securities classified as:
Available-for-sale:
Equity securities \ 14,476 \ 45,845 \ 208 \ 60,113
Debt securities 500 107 393
Other securities 571 30 28 573
Held-to-maturity 6,799 22 930 5,891
Thousands of U.S. Dollars
March 31, 2009 Cost Unrealized Gains Unrealized Losses Fair Value
Securities classified as:
Available-for-sale:
Equity securities $ 147,160 $ 230,674 $ 12,039 $ 365,795
Debt securities 23,601 9,740 13,861
Other securities 5,669 20 651 5,038
Held-to-maturity 59,383 142 10,655 48,87050Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Available-for-sale:
Equity securities \ 35,924 \ 37,408 $ 365,602
Other securities 2,091 2,395 21,280
Held-to-maturity 1,338 1,598 13,617
Total \ 39,353 \ 41,401 $ 400,499
Year ending March 31 Millions of Yen Thousands of U.S. Dollars
2010 \ 169,264 $ 1,722,614
2011 172,709 1,757,674
2012 226,115 2,301,191
2013 176,508 1,796,336
2014 217,295 2,211,429
Thereafter 1,019,117 10,371,636
Total \ 1,981,008 $ 20,160,880
Available-for-sale securities and held-to-maturity debt securities whose fair value is not readily determinable as of March 31, 2009 and 2008 were as
follows:
The annual maturities of long-term debt outstanding at March 31, 2009 were as follows:
All of the Company’s assets amounting to 3,834,125円 million
(39,020,202ドル thousand) are subject to certain statutory preferential
rights established to secure bonds and loans borrowed from The
Development Bank of Japan Inc. and bonds transferred to banks under
debt assumption agreements (see Note 16).
Certain assets of the consolidated subsidiaries, amounting to
79,951円 million (813,668ドル thousand), are pledged as collateral for a
portion of their long-term debt at March 31, 2009.
Investments in affiliated companies held by a consolidated subsidiary,
amounting to 21,298円 million (216,751ドル thousand), are pledged as
collateral for bank loans of the affiliated companies at March 31, 2009.
Long-term debt consisted of the following at March 31, 2009 and 2008:
5. PLEDGED ASSETS
6. LONG-TERM DEBT
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Yen bonds, 0.3% to 3.65%, due serially to 2024 \ 1,252,486 \ 1,147,458 $ 12,746,652
Swiss franc bonds, 2.625%, due 2014 18,965 18,990 193,008
Loans from The Development Bank of Japan Inc., 0.69% to 6.1%, due serially to 2028 202,521 228,170 2,061,073
Loans, principally from banks and insurance companies, 0.25% to 5.79%, due serially to 2025
Collateralized 34,392 27,335 350,010
Unsecured 468,603 462,612 4,769,011
Obligations under finance leases 4,041 41,126
Total 1,981,008 1,884,565 20,160,880
Less current portion 169,264 171,616 1,722,614
Long-term debt, less current portion \ 1,811,744 \ 1,712,949 $ 18,438,26651Employees terminating their employment with the Companies, either
voluntarily or upon reaching mandatory retirement age, are entitled,
under most circumstances, to severance payments based on credits
earned in each year of service, length of service and certain other
factors. As for the Company, if the termination is made voluntarily at
one of a number of specified ages, the employee is entitled to certain
additional payments.
Additionally, the Company and most of the consolidated
subsidiaries have contributory funded defined benefit pension plans
covering substantially all of their employees. In general, eligible
employees retiring at the mandatory retirement age receive pension
payments for the several fixed terms selected by them. As for the
Company, eligible employees retiring after at least 20 years of service
but before the mandatory retirement age, receive a lump-sum payment
upon retirement and annuities.
The reserve is provided for reprocessing costs of irradiated nuclear
fuel. The annual provision is calculated in accordance with the
accounting regulations set by the Japanese Government applicable to
electric utility providers in Japan.
The reserve is consisted of three portions and each of them is
calculated in different ways. (a) The costs reprocessed in Japan
Nuclear Fuel Limited are calculated based on the expected future
cash flows discounted at 1.5% and 1.6% at March 31, 2009 and 2008,
respectively, (b) the costs reprocessed in the other reprocessing
companies are calculated based on the quantities to be reprocessed
as of each balance sheet date and contracted reprocessing rate, (c)
the costs of irradiated nuclear fuels which have no authorized definite
reprocessing plan are calculated based on the expected future cash
flows discounted at 4.0%.
As of April 1, 2005, unrecognized prior costs of 130,495円 million,
which had not been recognized in the past as liability, were incurred
The liability for employees’ retirement benefits at March 31, 2009 and 2008 consisted of the followings:
The components of net periodic benefit costs for the years ended March 31, 2009 and 2008 are as follows:
Assumptions for actuarial computations for the years ended March 31, 2009 and 2008 are as follows:
7. SEVERANCE PAYMENTS AND PENSION PLANS
8. RESERVE FOR REPROCESSING OF IRRADIATED NUCLEAR FUEL
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Projected benefit obligation \ 489,060 \ 490,083 $ 4,977,203
Fair value of plan assets (286,661) (345,837) (2,917,372)
Unrecognized actuarial loss (75,519) (1,582) (768,563)
Unrecognized prior service cost (deduction of liability) 911 7,849 9,271
Prepaid pension cost 9,893 100,682
Net liability \ 137,684 \ 150,513 $ 1,401,221
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Service Cost \ 15,273 \ 15,435 $ 155,435
Interest Cost 9,624 9,715 97,944
Expected return on plan assets (10,453) (14,699) (106,381)
Recognized actuarial gain (9,437) (3,705) (96,041)
Amortization of prior service cost (7,859) (7,761) (79,982)
Net periodic benefit costs \ (2,852) \ (1,015) $ (29,025)
2009 2008
Discount rate 2.0% mainly 2.0%
Expected rate of return on plan assets mainly 3.0% mainly 4.0%
Recognition period of actuarial gain / loss mainly 5 years mainly 5 years
Amortization period of prior service cost mainly 5 years mainly 5 years52because new accounting regulations to estimate the reprocessing costs
for irradiated nuclear fuel were applicable on or after April 1, 2005.
These costs were amortized on a straight-line basis over 15 years.
The Company recalculated an estimate in accordance with a specific
law. As a result, the unrecognized prior costs as of April 1, 2008 were
changed from 104,397円 million to 90,977円 million, and these costs
are amortized over 12 years, beginning on April 1, 2008. The effect of
this treatment was immaterial. The balance of unrecognized past costs
as of March 31, 2009 was 83,396円 million (848,728ドル thousand). The
Company is permitted to recover these reprocessing costs by including
them in the admitted cost elements for electric rate.
In addition, if any changes are made in the assumptions for the
calculations of the reserve, such as expected future cash flows and the
discount rate, unrecognized difference might be incurred. The balance
of unrecognized difference as of March 31, 2009 is a loss of 12,337円
million (125,555ドル thousand). In accordance with the accounting
regulations, the difference will be amortized on a straight-line basis
beginning the following year the change was made, over the period
in which the irradiated nuclear fuel was produced. The annual
amortization is treated as operating expenses.
An independent fund managing body was set up based on a specific
law and the Company is obliged to contribute the same amounts as the
balance of reserve for reprocessing of irradiated nuclear fuel to reserve
funds in 15 years. The reserve funds is presented as "Reserve funds for
reprocessing of irradiated nuclear fuel."
Short-term borrowings are generally represented by bank loans, bearing interest at rates ranging from 0.57% to 1.88% and from 0.84818% to 2.13%
at March 31, 2009 and 2008, respectively.
9. SHORT-TERM BORROWINGS
The Companies are subject to several income taxes. The aggregate normal statutory tax rates for the Company approximated 36.1% for 2009 and 2008.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at March 31, 2009
and 2008 are as follows:
10. INCOME TAXES
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
Deferred Tax Assets:
Pension and severance costs \ 46,735 \ 54,918 $ 475,626
Depreciation 33,245 32,511 338,337
Reserve for reprocessing of irradiated nuclear fuel 19,247 16,036 195,878
Reserve for decommissioning of nuclear power units 15,025 15,025 152,911
Unrealized profits arising from the elimination of
intercompany transactions in consolidation
9,381 8,845 95,471
Tax loss carryforwards 7,508 9,801 76,410
Accrued bonus to employees 7,472 7,307 76,043
Deferred charges 5,981 6,070 60,869
Other 27,923 28,990 284,175
Less valuation allowance (28,405) (28,250) (289,080)
Deferred tax assets \ 144,112 \ 151,253 $ 1,466,640
Deferred Tax Liabilities:
Unrealized gain on available-for-sale securities \ 7,611 \ 16,434 $ 77,458
Deferred gain on derivatives under hedge accounting 1,049 2,240 10,676
Other 1,431 1,516 14,563
Deferred tax liabilities \ 10,091 \ 20,190 $ 102,697
Net deferred tax assets \ 134,021 \ 131,063 $ 1,363,94353A reconciliation between the normal effective statutory tax rates and the actual effective tax rates reflected in the accompanying consolidated
statements of income for the years ended March 31, 2009 and 2008 is as follows:
Since May 1, 2006, Japanese companies have been subject to the
Companies Act. The significant provisions in the Companies Act that
affect financial and accounting matters are summarized below:
(a) DividendsUnder the Companies Act, companies can pay dividends at any time
during the fiscal year in addition to the year-end dividend upon
resolution at the shareholders meeting. For companies that meet
certain criteria such as; (1) having the Board of Directors, (2) having
independent auditors, (3) having the Board of Corporate Auditors,
and (4) the term of service of the directors is prescribed as one year
rather than two years of normal term by its articles of incorporation,
the Board of Directors may declare dividends (except for dividends
in kind) at any time during the fiscal year if the company has
prescribed so in its articles of incorporation. However, the Company
cannot do so because it does not meet all the above criteria.
The Companies Act permits companies to distribute dividends-
in-kind (non-cash assets) to shareholders subject to a certain
limitation and additional requirements.
Semiannual interim dividends may also be paid once a year upon
resolution by the Board of Directors if the articles of incorporation
of the company so stipulate. The Companies Act provides certain
limitations on the amounts available for dividends or the purchase
of treasury stock. The limitation is defined as the amount available
for distribution to the shareholders, but the amount of net assets
after dividends must be maintained at no less than 3円 million.
(b) 
Increases / decreases and transfer of common stock,
reserve and surplus
The Companies Act requires that an amount equal to 10% of
dividends must be appropriated as a legal reserve (a component
of retained earnings) or as additional paid-in capital (a component
of capital surplus) depending on the equity account charged
upon the payment of such dividends until the total of aggregate
amount of legal reserve and additional paid-in capital equals 25%
of the common stock. Under the Companies Act, the total amount
of additional paid-in capital and legal reserve may be reversed
without limitation. The Companies Act also provides that common
stock, legal reserve, additional paid-in capital, other capital surplus
and retained earnings can be transferred among the accounts
under certain conditions upon resolution of the shareholders.
(c) Treasury stock and treasury stock acquisition rights
The Companies Act also provides for companies to purchase
treasury stock and dispose of such treasury stock by resolution of
the Board of Directors. The amount of treasury stock purchased
cannot exceed the amount available for distribution to the
shareholders which is determined by specific formula. Under
the Companies Act, stock acquisition rights are presented as a
separate component of equity. The Companies Act also provides
that companies can purchase both treasury stock acquisition
rights and treasury stock. Such treasury stock acquisition rights
are presented as a separate component of equity or deducted
directly from stock acquisition rights.
11. EQUITY
2009 2008
Normal effective statutory tax rate 36.1% 36.1%
Expenses not deductible for income tax purposes 2.9 2.3
Increase in valuation allowance 2.6 3.2
Income not taxable for income tax purposes (1.8) (0.5)
Tax credit for R&D (1.5) (1.1)
Other-net 0.2 1.2
Actual effective tax rate 38.5% 41.2%
Research and development costs charged to income were 10,292円 million (104,743ドル thousand) and 9,792円 million for the years ended March 31,
2009 and 2008, respectively.
12. RESEARCH AND DEVELOPMENT COSTS54The Companies acquired a majority ownership share of three affiliated companies in the year ended March 31, 2008. Assets acquired and liabilities
assumed in acquisition were as follows:
13. ADDITIONAL CASH FLOW INFORMATION
Millions of Yen
Assets acquired \ 21,170
Liabilities assumed (9,087)
Negative goodwill (691)
Minority interests in consolidated subsidiaries (5,822)
Total 5,570
The Companies’ interests in subsidiaries prior to the acquisition of additional interests (4,007)
Cash paid for the capital 1,563
Cash and cash equivalents held by subsidiaries 4,774
Net proceeds \ 3,211
Significant transactions of the Company with an affiliated company for the years ended March 31, 2009 and 2008 were as follows:
14. RELATED PARTY DISCLOSURES
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
KYUDENKO CORPORATION
Transactions:
Purchase of construction works on distribution facilities and other \ 44,584 \ 47,881 $ 453,735
Balances at year end:
Payables for construction works 4,845 5,539 49,308
The Company enters into foreign exchange forward contracts,
currency swaps, interest rate swaps, energy swap agreements
and weather derivatives to manage its exposures to fluctuations in
foreign exchanges, interest rates, fuel price and electric operating
revenues, respectively.
A consolidated subsidiary of the Company enters into interest rate
swaps to manage exposure to fluctuations in interest rates.
The Companies do not enter into derivatives for trading or
speculative purposes.
Foreign exchange forward contracts, currency swaps, interest rate
swaps and energy swap agreements are subject to market risk which
is the exposure created by potential fluctuations in market conditions.
Weather derivatives are subject to electric power business risk
which is the exposure created by potential fluctuations in summer
temperature changes.
The Companies do not anticipate any losses arising from credit
risk which is the possibility that a loss may result from counterparties’
failure to perform according to the terms and conditions of the
contract, because the counterparties to those derivatives have high
credit ratings.
The derivative transactions are executed by the specific sections
and administrative section monitors them based on internal policies.
15. DERIVATIVES55At March 31, 2009, the Companies had a number of fuel purchase commitments, most of which specify quantities and dates for fuel deliveries.
However, most of purchase prices are contingent upon fluctuations in market prices.
Contingent liabilities as of March 31, 2009 were as follows:
Under the debt assumption agreements, the Company was contingently liable for the redemption of the domestic bonds transferred to banks.
16. COMMITMENTS AND CONTINGENCIES
Millions of Yen Thousands of U.S. Dollars
Co-guarantees of loans, mainly in connection with procurement of fuel \ 101,983 $ 1,037,889
Guarantees of employees’ loans 78,952 803,501
Guarantees under debt assumption agreements 70,000 712,396
Other 9,102 92,632
Information by business segments for the years ended March 31, 2009 and 2008 is as follows:
Business Segments
17. SEGMENT INFORMATION
Millions of Yen2009Electric Power
Energy-related
Business
IT and
telecommunications
Other
Eliminations/
Corporate
Consolidated
Sales to customers \ 1,398,577 \ 60,462 \ 55,751 \ 9,403 \ 1,524,193
Intersegment sales 2,215 96,738 36,994 15,025 \ (150,972)
Total sales 1,400,792 157,200 92,745 24,428 (150,972) 1,524,193
Operating expenses 1,326,654 149,602 91,962 22,777 (151,525) 1,439,470
Operating income \ 74,138 \ 7,598 \ 783 \ 1,651 \ 553 \ 84,723
Total assets \ 3,705,355 \ 284,830 \ 141,956 \ 136,576 \ (157,839) \ 4,110,878
Depreciation 216,706 12,028 21,238 5,400 (2,941) 252,431
Impairment loss 501 68 569
Capital expenditures 223,954 20,202 22,209 3,716 (4,558) 265,523
Millions of Yen2008Electric Power
Energy-related
Business
IT and
telecommunications
Other
Eliminations/
Corporate
Consolidated
Sales to customers \ 1,363,424 \ 56,606 \ 52,803 \ 9,519 \ 1,482,352
Intersegment sales 2,277 90,432 35,601 15,325 \ (143,635)
Total sales 1,365,701 147,038 88,404 24,844 (143,635) 1,482,352
Operating expenses 1,271,380 138,458 90,089 21,369 (144,485) 1,376,811
Operating income (loss) \ 94,321 \ 8,580 \ (1,685) \ 3,475 \ 850 \ 105,541
Total assets \ 3,669,928 \ 265,322 \ 142,912 \ 141,674 \ (160,061) \ 4,059,775
Depreciation 219,754 11,183 20,264 5,023 (2,854) 253,370
Impairment loss 1,227 287 233 1,747
Capital expenditures 201,953 17,730 24,704 6,806 (3,140) 248,05356Thousands of U.S. Dollars2009Electric Power
Energy-related
Business
IT and
telecommunications
Other
Eliminations/
Corporate
Consolidated
Sales to customers $ 14,233,432 $ 615,327 $ 567,382 $ 95,695 $ 15,511,836
Intersegment sales 22,542 984,510 376,491 152,911 $ (1,536,454)
Total sales 14,255,974 1,599,837 943,873 248,606 (1,536,454) 15,511,836
Operating expenses 13,501,465 1,522,512 935,904 231,804 (1,542,082) 14,649,603
Operating income $ 754,509 $ 77,325 $ 7,969 $ 16,802 $ 5,628 $ 862,233
Total assets $ 37,709,699 $ 2,898,738 $ 1,444,697 $ 1,389,945 $ (1,606,340) $ 41,836,739
Depreciation 2,205,435 122,410 216,141 54,956 (29,931) 2,569,011
Impairment loss 5,099 692 5,791
Capital expenditures 2,279,198 205,597 226,023 37,818 (46,387) 2,702,249
At the general shareholders meeting held on June 26, 2009, the Company’s shareholders approved the following appropriation of retained earnings
as of March 31, 2009:
Appropriations of Retained Earnings
18. SUBSEQUENT EVENT
Millions of Yen Thousands of U.S. Dollars
Year-end cash dividends, 30円.00 (0ドル.31) per share \ 14,203 $ 144,545
Energy related business consisted of obtaining, storing, gasifying
and supplying LNG, heat supply business, distributed generation
business, energy consulting and other businesses related to energy.
IT and telecommunications consisted of providing telephone lines
and wirelines.
Other consisted of environment and recycling, lifestyle-oriented
services and others.
Geographic segment information is not disclosed because the
Companies’ overseas operations are immaterial.
Information for overseas sales is not disclosed due to overseas
sales being immaterial compared with consolidated net sales.5758
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 98円.26 = U.S. 1,ドル the approximate rate of exchange at March 31, 2009.)
Non-consolidated Five-Year Financial Summary
Kyushu Electric Power Company, Incorporated
Years Ended March 31, 2009 and 2008 (Unaudited)
Millions of Yen
(except for per share data)
Thousands of U.S. Dollars
(except for per share data)
2009 2008 2007 2006 2005 2009
For the Year:
Operating revenues \ 1,430,162 \ 1,392,060 \ 1,333,038 \ 1,329,435 \ 1,333,161 $ 14,554,875
Electric 1,400,792 1,365,701 1,310,170 1,314,394 1,322,996 14,255,974
Other 29,370 26,359 22,868 15,041 10,165 298,901
Electric operating expenses 1,326,654 1,271,380 1,165,874 1,151,486 1,117,674 13,501,465
Personnel 136,794 138,313 144,806 178,455 185,902 1,392,164
Fuel 305,600 279,930 211,318 179,745 143,221 3,110,116
Purchased power 149,940 123,276 112,603 113,252 105,553 1,525,952
Depreciation 195,232 197,343 189,004 199,587 210,386 1,986,892
Maintenance 197,807 184,938 170,789 157,370 158,704 2,013,098
Reprocessing costs of
irradiated nuclear fuel 34,167 41,579 49,859 31,080 26,628 347,720
Decommissioning costs of
nuclear power units 8,309 21,357 6,546 9,121 5,009 84,561
Disposal cost of high-level
radioactive waste 8,669 9,125 8,822 8,041 7,727 88,225
Disposition of property 22,877 16,329 17,866 16,407 14,856 232,821
Taxes other than income taxes 88,453 87,107 87,216 89,259 91,846 900,193
Subcontract fee 74,835 70,721 65,657 64,896 66,779 761,602
Rent 35,760 36,547 36,515 36,316 36,463 363,932
Other 68,211 64,815 64,873 67,957 64,600 694,189
Interest charges 33,444 34,426 35,800 38,445 46,521 340,362
Income before income taxes 44,165 60,162 100,085 108,815 143,567 449,471
Net income 26,917 35,683 59,237 69,137 89,385 273,937
Per share of common stock
(yen and U.S. dollars):
Basic net income \ 56.85 \ 75.37 \ 125.07 \ 145.64 \ 188.33 $ 0.58
Cash dividends
applicable to the year 60.00 60.00 60.00 60.00 60.00 0.61
At year-end:
Total assets \ 3,834,125 \ 3,784,701 \ 3,790,112 \ 3,857,317 \ 3,806,568 $ 39,020,202
Net property 2,847,639 2,878,537 2,926,322 3,000,958 3,076,207 28,980,653
Long-term debt, less current portion 1,715,780 1,620,563 1,595,429 1,638,092 1,635,720 17,461,632
Total equity 981,540 999,679 1,018,804 995,662 929,356 9,989,21259Non-consolidated Balance Sheets
Kyushu Electric Power Company, Incorporated
March 31, 2009 and 2008 (Unaudited)
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
ASSETS
PROPERTY:
Plant and equipment \ 8,516,921 \ 8,418,655 $ 86,677,397
Construction in progress 211,662 207,352 2,154,101
Total 8,728,583 8,626,007 88,831,498
Less-
Contributions in aid of construction 140,908 138,168 1,434,032
Accumulated depreciation 5,740,036 5,609,302 58,416,813
Total 5,880,944 5,747,470 59,850,845
Net property 2,847,639 2,878,537 28,980,653
NUCLEAR FUEL 264,205 250,845 2,688,836
INVESTMENTS AND OTHER ASSETS:
Investment securities 73,029 97,336 743,222
Investments in and advances to subsidiaries and affiliated companies 130,327 115,607 1,326,349
Reserve funds for reprocessing of irradiated nuclear fuel 136,012 104,740 1,384,205
Deferred tax assets 100,101 97,747 1,018,736
Other assets 31,185 25,094 317,372
Total investments and other assets 470,654 440,524 4,789,884
CURRENT ASSETS:
Cash and cash equivalents 70,074 40,752 713,149
Receivables 105,426 105,682 1,072,929
Allowance for doubtful accounts (782) (947) (7,958)
Fuel and supplies 51,800 42,882 527,173
Deferred tax assets 12,163 12,006 123,784
Prepaid expenses and other 12,946 14,420 131,752
Total current assets 251,627 214,795 2,560,829
TOTAL \ 3,834,125 \ 3,784,701 $ 39,020,202
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 98円.26 = U.S. 1,ドル the approximate rate of exchange at March 31, 2009.)60Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
LIABILITIES AND EQUITY
LONG-TERM LIABILITIES:
Long-term debt, less current portion \ 1,715,780 \ 1,620,563 $ 17,461,632
Liability for employees’ retirement benefits 120,665 133,391 1,228,018
Reserve for reprocessing of irradiated nuclear fuel 366,437 362,826 3,729,259
Reserve for decommissioning of nuclear power units 155,838 147,529 1,585,976
Other 17,409 17,531 177,173
Total long-term liabilities 2,376,129 2,281,840 24,182,058
CURRENT LIABILITIES:
Current portion of long-term debt 148,460 150,351 1,510,890
Short-term borrowings 129,000 133,000 1,312,843
Commercial paper 12,000
Accounts payable 69,939 88,880 711,775
Accrued income taxes 1,066 88 10,849
Accrued expenses 97,467 91,708 991,930
Other 30,524 27,155 310,645
Total current liabilities 476,456 503,182 4,848,932
EQUITY:
Common stock, authorized, 1,000,000,000 shares;
issued, 474,183,951 shares in 2009 and 2008
237,305 237,305 2,415,072
Capital surplus:
Additional paid-in capital 31,087 31,087 316,375
Other capital surplus 36 47 366
Retained earnings:
Legal reserve 59,326 59,326 603,765
Retained earnings - carryforward 640,948 642,439 6,522,980
Unrealized gain on available-for-sale securities 13,122 27,744 133,544
Deferred gain on derivatives under hedge accounting 1,520 3,454 15,469
Treasury stock-at cost
749,232 shares in 2009 and 710,366 shares in 2008
(1,804) (1,723) (18,359)
Total equity 981,540 999,679 9,989,212
TOTAL \ 3,834,125 \ 3,784,701 $ 39,020,20261Non-consolidated Statements of Income
Kyushu Electric Power Company, Incorporated
Years Ended March 31, 2009 and 2008 (Unaudited)
Millions of Yen
Thousands of
U.S. Dollars
2009 2008 2009
OPERATING REVENUES:
Electric \ 1,400,792 \ 1,365,701 $ 14,255,974
Other 29,370 26,359 298,901
Total operating revenues 1,430,162 1,392,060 14,554,875
OPERATING EXPENSES:
Electric:
Personnel 136,794 138,313 1,392,164
Fuel 305,600 279,930 3,110,116
Purchased power 149,940 123,276 1,525,952
Depreciation 195,232 197,343 1,986,892
Maintenance 197,807 184,938 2,013,098
Reprocessing costs of irradiated nuclear fuel 34,167 41,579 347,720
Decommissioning costs of nuclear power units 8,309 21,357 84,561
Disposal cost of high-level radioactive waste 8,669 9,125 88,225
Disposition of property 22,877 16,329 232,821
Taxes other than income taxes 88,453 87,107 900,193
Subcontract fee 74,835 70,721 761,602
Rent 35,760 36,547 363,932
Other 68,211 64,815 694,189
Total 1,326,654 1,271,380 13,501,465
Other 28,691 26,718 291,991
Total operating expenses 1,355,345 1,298,098 13,793,456
OPERATING INCOME 74,817 93,962 761,419
OTHER EXPENSES (INCOME):
Interest charges 33,444 34,426 340,362
Gain on sales of investment securities (5,400) (1,835) (54,956)
Other-net 2,608 1,300 26,542
Total other expenses-net 30,652 33,891 311,948
INCOME BEFORE INCOME TAXES AND REVERSAL OF RESERVE
FOR FLUCTUATIONS IN WATER LEVEL
44,165 60,071 449,471
REVERSAL OF RESERVE FOR FLUCTUATIONS IN WATER LEVEL (91)
INCOME BEFORE INCOME TAXES 44,165 60,162 449,471
INCOME TAXES:
Current 10,406 17,838 105,903
Deferred 6,842 6,641 69,631
Total income taxes 17,248 24,479 175,534
NET INCOME \ 26,917 \ 35,683 $ 273,937
Yen U.S. Dollars
PER SHARE OF COMMON STOCK:
Basic net income \ 56.85 \ 75.37 $ 0.58
Cash dividends applicable to the year 60.00 60.00 0.61
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 98円.26 = U.S. 1,ドル the approximate rate of exchange at March 31, 2009.)62Overview of Power Generation Facilities
(As of March 31, 2009)
Nuclear Power Stations (two facilities/maximum output 5,258,000 kW)
Station name Maximum output (kW)
Operation
commencement date
System Location
Genkai 3,478,000 (×ばつ2 ×ばつ2) Oct. 1975 Pressurized water reactor Genkai-cho, Higashi Matsuura-gun, Saga Prefecture
Sendai 1,780,000 (×ばつ2) Jul. 1984 Pressurized water reactor Satsumasendai-shi, Kagoshima Prefecture
Thermal Power Stations (10 facilities/maximum output 11,180,000 kW)
Station name Maximum output (kW)
Operation
commencement date
Main fuel Location
Shin Kokura 1,800,000 (×ばつ3) Oct. 1961 LNG Kokura Kita-ku, Kitakyushu-shi, Fukuoka Prefecture
Karita 735,000 (×ばつ1 ×ばつ1) Mar. 1956 Coal/heavy oil Kanda-machi, Miyako-gun, Fukuoka Prefecture
Buzen 1,000,000 (×ばつ2) Dec. 1977 Heavy oil/crude oil Buzen-shi, Fukuoka Prefecture
Karatsu 875,000 (×ばつ1 ×ばつ1) Jul. 1971 Heavy oil/crude oil Karatsu-shi, Saga Prefecture
Matsuura 700,000 Jun. 1989 Coal Matsuura-shi, Nagasaki Prefecture
Ainoura 875,000 (×ばつ1 ×ばつ1) Apr. 1973 Heavy oil/crude oil Sasebo-shi, Nagasaki Prefecture
Oita 500,000 (×ばつ2) Jul. 1969 Heavy oil Oita-shi, Oita Prefecture
Shin Oita 2,295,000 (×ばつ6 ×ばつ4 ×ばつ3) Jun. 1991 LNG Oita-shi, Oita Prefecture
Reihoku 1,400,000 (×ばつ2) Dec. 1995 Coal Reihoku-machi, Amakusa-gun, Kumamoto Prefecture
Sendai 1,000,000 (×ばつ2) Jul. 1974 Heavy oil/crude oil Satsumasendai-shi, Kagoshima Prefecture
Hydroelectric Power Stations (139 facilities/maximum output 2,977,096 kW)
Station name Maximum output (kW)
Operation
commencement date
System Location
Tenzan 600,000 Dec. 1986 Dam and conduit system
(pure pumped-storage) Karatsu-shi, Saga Prefecture
Yanagimata 63,800 Jun. 1973 Dam and conduit system Hita-shi, Oita Prefecture
Matsubara 50,600 Aug. 1971 Dam system Hita-shi, Oita Prefecture
Ohira 500,000 Dec. 1975 Dam and conduit system
(pure pumped-storage) Yatsushiro-shi, Kumamoto Prefecture
Iwayado 51,100 Jan. 1942 Dam and conduit system Shiiba-son, Higashi Usuki-gun, Miyazaki Prefecture
Kamishiiba 91,600 May 1955 Dam and conduit system Shiiba-son, Higashi Usuki-gun, Miyazaki Prefecture
Tsukabaru 63,090 Oct. 1938 Dam and conduit system Morotsuka-son, Higashi Usuki-gun, Miyazaki Prefecture
Morotsuka 50,000 Feb. 1961 Dam and conduit system Morotsuka-son, Higashi Usuki-gun, Miyazaki Prefecture
Omarugawa 600,000 Jul. 2007 Dam and conduit system
(pure pumped-storage) Kijo-cho, Koyu-gun, Miyazaki Prefecture
Hitotsuse 180,000 Jun. 1963 Dam and conduit system Saito-shi, Miyazaki Prefecture
Oyodogawa Daiichi 55,500 Jan. 1926 Dam system Miyakonojo-shi, Miyazaki Prefecture
Oyodogawa Daini 71,300 Mar. 1932 Dam and conduit system Miyazaki-shi, Miyazaki Prefecture
*with outputs of 50,000 kW or higher
Geothermal Power Stations (6 facilities/maximum output 209,500 kW)
Station name Maximum output (kW)
Operation
commencement date
Location
Takigami 25,000 Nov. 1996 Kokonoe-machi, Kusu-gun, Oita Prefecture
Otake 12,500 Aug. 1967 Kokonoe-machi, Kusu-gun, Oita Prefecture
Hatchoubaru 110,000 (×ばつ2) Jun. 1977 Kokonoe-machi, Kusu-gun, Oita Prefecture
Hatchoubaru Binary 2,000 Apr. 2006 Kokonoe-machi, Kusu-gun, Oita Prefecture
Ogiri 30,000 Mar. 1996 Kirishima-shi, Kagoshima Prefecture
Yamagawa 30,000 Mar. 1995 Ibusuki-shi, Kagoshima Prefecture
Wind Power Stations (two facilities/maximum output total 3,250 kW)
Station name Maximum output (kW)
Operation
commencement date
Location
Koshikijima wind power 250 Mar. 2003 Satsumasendai-shi, Kagoshima Prefecture
Noma-misaki wind park 3,000 Mar. 2003 Minami satsuma-shi, Kagoshima Prefecture
Internal Combustion Power Stations (34 facilities/maximum output 395,270 kW) *including gas turbines
Station name Maximum output (kW)
Operation
commencement date
Location
Shinarikawa 60,000 (×ばつ6) Jun. 1982 Shinkamigotou-chou, Minami matsuura-gun, Nagasaki Prefecture
Tatsugo 60,000 (×ばつ6) Jun. 1980 Tatsugo-chou, Ooshima-gun, Kagoshima Prefecture
*with outputs of 50,000 kW or higher63Major Subsidiaries and Affiliated Companies
(As of March 31, 2009)
Major Consolidated Subsidiaries
Company Name
Capital
(Millions of yen)
Equity
Ownership(%)Business
Energy Business in Kyushu
Oita Liquefied Natural Gas Co., Inc. 7,500 90.0 Receipt, storage, vaporization and delivery of LNG
Kitakyushu Liquefied Natural Gas Co., Inc. 4,000 75.0 Receipt, storage, vaporization and delivery of LNG
Pacific Hope Shipping Limited 4,071 60.0 Purchasing, operating, chartering and renting of LNG carriers
Nishinippon Environmental Energy Co., Inc. 1,010 100.0 Distributed power system business and consultation about energy efficiency
Nagashima Windhill Co., Ltd. 490 86.0 Sales of electricity generated by wind power
Fukuoka Energy Service Co., Inc. 490 80.0 Heat supply business
KYUKI CORPORATION 305 67.0 Manufacture and sales of electric machinery
NISHI NIPPON AIRLINES CO., LTD. 360 54.7 Air cargo transportation
Nishinippon Plant Engineering and Construction Co., Ltd. 150 85.0 Construction, maintenance and repair of power generation facilities
Kyushu Kouatsu Concrete Industries Co., Ltd. 240 51.3 Manufacture and sales of concrete poles
Kyuden Sangyo Co., Inc. 117 100.0 Environmental preservation work at power stations
Miyazaki Biomass Recycle Co., Inc. 100 42.0 Power-generation activities using poultry dung fuel
West Japan Engineering Consultants, Inc. 40 100.0 Consultation and planning of civil engineering and construction
Kyushu Meter & Relay Engineering Corporation 22 98.6 Repair and maintenance of electronic instruments
Koyo Denki Kogyo Co., Ltd. 20 95.9 Manufacture and sales of HV and LV insulators and other items
Nishigi Kogyo, Co., Inc. 20 69.0 Conduit maintenance for hydroelectric power stations
Energy Business Overseas
Kyuden International Corporation 10,600 100.0 Acquisition and holding of securities of overseas electric companies
IT and Telecommunications
Kyushu Telecommunication Network Co., Inc. 22,020 96.8 Fiber-optic cable and broadband services
Kyuden Infocom Company, Inc. 480 100.0 IT-related planning and consultation, and data center business
Nishimu Electronics Industries, Co., Ltd. 300 100.0 Manufacture, sales, installation and maintenance of telecomunication devices
Kyuden Business Solutions Co., Inc. 100 100.0 Development, operation and maintenance of information systems
RKK Computer Service Co., Inc. 100 61.3 Development and sales of computer softwares
Lifestyle-oriented Services
Capital Kyuden Corporation 600 92.5 Acquiring and owning of securities, loans to group companies
Kyushu Rinsan Co. 490 100.0 Greening construction at power stations and other facilities
DENKI BLDG. CO., Ltd. 495 89.9 Leasing and management of real estate
Kyuden Good Life Company, Inc. 300 100.0 Paid elderly nursing home management and nursing services
Kyuden Good Life Kumamoto Company, Inc. 200 100.0 Paid elderly nursing home management and nursing services
Kyuden Business Front Inc. 100 100.0 Temporary staffing and job-placement services
Kyuden Good Life Fukuoka Josui Company, Inc. 100 100.0 Paid elderly nursing home management and nursing services
Kyuden Good Life Kagoshima Company, Inc. 100 90.0 Paid elderly nursing home management and nursing services
Kyuden Good Life Higashifukuoka Company, Inc. 100 70.0 Paid elderly nursing home management and nursing services
Kyuden Fudousan Co., Ltd. 32 98.1 Leasing of real estate and site management
Kyuden Office Partner Co., Inc. 30 100.0 Clerical work acceptance on trust and consulting business64Company Name
Capital
(Millions of yen)
Equity
Ownership(%)Business
Energy Business in Kyushu
Tobata Co-operative Thermal Power Co., Inc. 9,000 50.0 Wholesale electricity supply
Fukuoka Clean Energy Co., Ltd. 5,000 49.0 Waste incineration and power generation business
Kyudenko Corporation 7,901 30.5 Electric work
Oita Co-operative Thermal Power Co., Inc. 4,000 50.0 Wholesale electricity supply
KYUSYU CRYOGENICS CO., LTD. 450 50.0 Manufacture and sales of liquid oxygen, liquid nitrogen and liquid argon
Kyuhen Co., Ltd. 225 35.9 Manufacture and sales of electrical equipment
Seishin Corporation 200 26.5 Sale of electrical equipment
Kyuken Corporation 100 14.4 Construction and repair of transmission lines
Plazwire Co., Ltd. 50 100.0 Flame spray coating (painting) business
Nishikyushu Kyodo Kowan Co., Ltd. 50 50.0 Operation and maintenance of coal handling equipment
Nihon FRP Co., Inc. 30 65.0 Design fabrication, repair and installation of reinforced plastic
Nishi Nihon Denki Tekkou Co., Ltd. 30 33.5 Design, production and sales of steel towers and steel conduits
NISHIDA TECHNO SERVICE Co., Inc. 20 65.0 Inspection, maintenance, design, production and construction of sluice and weir equipment
Washiodake Wind Power Co., Ltd. 10 100.0 Development of wind power generation facilities and sales of generated electric power
NISHIGI SURVEYING AND DESIGN CO., LTD. 10 97.6 Investigation, measurement, design, drafting and care of civil engineering/construction projects
Amami Oshima Wind Power Co., Ltd. 10 75.0 Development of wind power generation facilities and sales of generated electric power
CONTEX 10 70.0 Manufacture and sales of cement products
Energy Business Overseas
KYUDEN ILIJAN HOLDING CORPORATION 3,050
(Thousands of U.S. dollars)
100.0 Investment in Ilijan IPP business company
KYUDEN SARULLA PTE. LTD. 3,762
(Thousands of Singapore dollars)
100.0 Geothermal power generation
Electricidad Aguila de Tuxpan, S.deR.L.deC.V. 641,743
(Thousands of Mexico Pesos)
50.0 Power-generation activities using natural gas fuel
Electricidad Sol de Tuxpan, S.deR.L.deC.V. 493,407
(Thousands of Mexico Pesos)
50.0 Power-generation activities using natural gas fuel
IT and Telecommunications
Kagoshima Hikari Television Co., Inc. 75 90.0 Telecommunication broadcasting business
RKKCS Software 10 100.0 Developments and sales of computer software
Environment and Recycling Business
J-Re-Lights Co., Ltd. 275 100.0 Recycling of used fluorescent bulbs
Kyushu Environmental Management Corporation 80 98.1 Recycling of confidential documents
Lifestyle-oriented Services
Kyushu Housing Guarantee Corporation 272 33.3 Housing and building assessments, security services affairs
Kyushu Highlands Development Co., Ltd. 150 100.0 Management of golf courses
Kyuden Home Security Co., Inc. 100 90.0 Home security and monitoring business
Kyuden Shared Business Co., Ltd. 80 100.0 Accounting and personnel services
Kyushu Captioning Co-Production Center Inc. 60 76.7 Subtitle production for broadcasting
Medical Support Kyushu Co., Ltd. 50 97.0 Lease of medical equipment and management support for a clinic medical imaging
Oak Co., Ltd. 3 100.0 Real estate management
Major Non-consolidated Subsidiaries and Affiliated Companies Accounted for under Equity Method65Outline of Kyushu Electric Power’s History
(As of March 31, 2009)
(Fiscal Year) Noteworthy Events
1951 Kyushu Electric Power is established.1953Kyushu Electric Power receives its first postwar loan (approximately 3円.8 billion) in Japan from the International Bank for Reconstruction
and Development (the World Bank).1955The Kamishiiba Power Station, the first in Japan with an arch dam, becomes operational.
Unit 1 at the Karita Thermal Power Station, an advanced, high-capacity system (75,000 kW) becomes operational.1957Kyushu Electric Power completes its Central Line (220,000 V), its first super-high-voltage transmission line.
Thermal generation capacity exceeds hydroelectric capacity.
1960 Frequency unification is completed.1967The Otake Power Station, Japan’s first commercial geothermal generation facility, becomes operational with a capacity of 11,000 kW.
Unit 1 at the Karatsu Power Station (156,000 kW) becomes operational as Kyushu Electric Power’s first generation facility with a control
computer.1969Unit 1 at the Oita Power Station (250,000 kW), Kyushu Electric Power’s first facility designed to run exclusively on heavy fuel oil, becomes
operational.
1970 The provision of electric lighting to all homes is completed.1975Unit 1 at the Genkai Power Station (559,000 kW), Kyushu Electric Power’s first nuclear facility, becomes operational.
The Ohira Power Station, then Japan’s biggest pumped-storage facility (500,000 kW) becomes operational.1977Unit 1 at the Hatchoubaru Geothermal Power Station, one of the biggest in Japan, becomes operational, initially with a capacity of
23,000 kW.1980Kyushu Electric Power builds the Central and West Kyushu Substations (500,000 V) and raises the voltage on its Saga Line to 500,000 V.
The 500,000 V Trans-Kanmon Line becomes operational.
1982 The Kyushu Energy Center is opened.
1984 Unit 1 at the Sendai Nuclear Power Station (890,000 kW) becomes operational.1986Unit 1 at the Tenzan Power Station (300,000 kW), a large-capacity pumped-storage facility, becomes operational.
Kyushu Electric Power begins to use automatic control systems on its distribution lines.
1989 Kyushu Electric Power achieves a zero outage record for work on high-and low-voltage facilities for the first time in Japan.1990The No. 1 System at the Shin Oita Power Station (690,000 kW) becomes operational. Designed to use LNG, this combined-cycle unit
provides excellent thermal efficiency.1992Kyushu Electric Power begins to purchase surplus electric power from distributed generation facilities, including solar and wind power
systems.1998Kyushu Electric Power begins to operate a superconducting storage system as an electric power facility. It is the first of its type in Japan
and one of the largest in the world.2000The Genkai Energy Park is opened.
Revision of the Electricity Enterprises Law (deregulation of electric utilities).2001A loan agreement is signed for the Tuxpan II IPP project in Mexico.
The Kyushu Homeland Forestation Program is launched.
2002 Dedicated sales representatives are assigned to corporate customers.2004The Call Center is extended to the entire corporate organization.
Kyushu Electric Power achieves the best CO2 emission level per unit of electric power (0.331 kg-CO2/kWh) in the Japanese electric power industry.
2005 The Goto Archipelago Link, Japan’s longest sea-bed cable, becomes operational.
2006 Kyushu Electric Power becomes the first electric power company to win top prize in the 9th Green Reporting Awards.
2007 "Kyushu Electric Power’s Mission" is adopted.
2008 Formulation of Long-term Management Vision.
Corporate Data
(As of March 31, 2009)
Company Overview
Stock Information
Stock Price Movement
Major ShareholdersNameNumber of Shares Held
(Thousands of Shares)
Shareholding Ratio(%)Meiji Yasuda Life Insurance 23,710 5.00
Japan Trustee Services Bank, Ltd. (trust unit 4G) 22,942 4.84
The Master Trust Bank of Japan, Ltd. (trust unit) 22,397 4.72
Japan Trustee Services Bank, Ltd. (trust unit) 20,281 4.28
Nippon Life Insurance Company 18,454 3.89
Mizuho Corporate Bank, Ltd. 10,419 2.20
Mizuho Trust and Banking, Retirement Benefit Trust Fukuoka Bank unit 8,637 1.82
Sumitomo Mitsui Banking Corporation 8,474 1.79
Kyushu Electric Power Co., Inc. Employees’ Shareholding Association 6,868 1.45
Kochi Shinkin Bank 5,968 1.26
Trade Name Kyushu Electric Power Company, Incorporated
Head Office 1-82, Watanabe-dori 2-chome, Chuo-ku, Fukuoka 810-8720, Japan
Phone +81-92-761-3031
Tokyo Branch Office 7-1, Yurakucho 1-chome, Chiyoda-ku, Tokyo 100-0006, Japan
Phone +81-3-3281-4931
Date of Establishment May 1, 1951
Paid-in Capital 237,304,863,699円
Number of Employees 12,465
Total Number of Shares Authorized 1,000,000,000
Number of Shares Issued and Outstanding 474,183,951
Number of Shareholders 182,869
Shareholders’ Meeting June
Fiscal Year-end March 31
Stock Listings Tokyo Stock Exchange, Osaka Securities Exchange,
Fukuoka Stock Exchange
(Code: 9508)
Transfer Agent and Registrar The Chuo Mitsui Trust and Banking Co., Ltd.
33-1, Shiba 3-chome, Minato-ku, Tokyo, Japan
Accounting Auditor Deloitte Touche Tohmatsu
Financial
Institutions
47.7%
Foreign Investors
12.2%
Other Domestic
Companies 5.8%
Securities Firms0.4%Governmental
Organization0.9%Individuals
and Other
33.0%
By Type of Shareholder
Less than 100
23.9%
100 to 499
34.0%
500 to 999
13.3%
1,000 to 4,999
26.0%
5,000 or more2.8%By Number of Shares Held
Composition of Shareholders01,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
(Thousands of Shares)
(Yen)0500
1,000
1,500
2,000
2,500
3,000
3,500
4,00020044200542006420074200842009366Printed in Japan
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