Financial Section
Contents
25 Consolidated Eleven-year Financial Summary, and Summary of the year ended March 31, 2013
27 Management Discussion and Analysis
29 Business Risk Factors
31 Consolidated Balance Sheet
33 Consolidated Statement of Operations
34 Consolidated Statement of Comprehensive Income
35 Consolidated Statement of Changes in Equity
36 Consolidated Statement of Cash Flows
37 Notes to Consolidated Financial Statements
37 1. Basis of Presenting Consolidated Financial Statements
2. Summary of Significant Accounting Policies
40 3. Property
4. Investment Securities
41 5. Pledged Assets
6. Long-Term Debt
7. Severance Payments and Pension Plans
42 8. Reserve for Reprocessing of Irradiated Nuclear Fuel43 9. Asset Retirement Obligations
10. Short-Term Borrowings
11. Income Taxes
44 12. Equity
13. Research and Development Costs
14. Related Party Disclosure
45 15. Financial Instruments and Related Disclosures
48 16. Derivatives
49 17. Commitments and Contingencies
18. Comprehensive Income
19. Segment Information
51 Independent Auditor’s Report
52 Nonconsolidated Five-year Financial Summary
53 Nonconsolidated Balance Sheet
55 Nonconsolidated Statement of Operations
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 24
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Consolidated Eleven-year Financial Summary
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31
Millions of Yen
For the Year: 2003 2004 2005 2006 2007 2008
Operating revenues �� 1,421,310円 1,391,683円 1,408,728円 1,401,751円 1,408,327円 1,482,351円
Electric �� 1,350,674 1,308,843 1,320,581 1,311,995 1,307,737 1,363,423
Other �� 70,635 82,840 88,146 89,755 100,590 118,927
Operating expenses �� 1,241,296 1,192,718 1,194,993 1,230,466 1,253,154 1,376,811
Electric �� 1,170,655 1,108,104 1,107,744 1,140,797 1,155,413 1,260,615
Other �� 70,640 84,614 87,249 89,669 97,741 116,195
Interest charges �� 77,896 77,120 49,522 41,129 38,354 36,937
Income (loss) before income
taxes and minority interests�� 102,362 112,450 146,796 120,790 112,887 72,463
Income taxes �� 38,417 39,085 57,857 43,038 46,075 29,853
Net income (loss) �� 64,319 72,792 89,288 76,849 65,967 41,726
Per share of common stock: Yen
Basic net income (loss) �� 135円.13 153円.05 187円.91 161円.67 139円.37 88円.19
Cash dividends applicable to
the year �� 50.00 50.00 60.00 60.00 60.00 60.00
At year-end: Millions of Yen
Total assets �� 4,204,566円 4,114,378円 4,049,713円 4,102,319円 4,038,838円 4,059,775円
Net property �� 3,523,272 3,394,855 3,300,739 3,217,981 3,140,200 3,109,292
Long-term debt,
less current portion �� 1,984,702 1,858,512 1,739,660 1,724,178 1,689,106 1,712,949
Total equity �� 840,244 910,837 979,251 1,052,785 1,092,600 1,084,212
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 93円.99 = U.S.1,ドル the approximate rate of exchange at March 31, 2013.)
* Figures less than a million yen are rounded down.
Ordinary loss and net loss for second consecutive fiscal year
Operating revenues increased year on year, but losses widened com-
pared with fiscal 2011 as thermal fuel costs and costs for power pur-
chases increased sharply in the electricity business due to the
shutdown of operations at our nuclear power stations.
Summary of the year ended March 31, 2013
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 25
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Operating Revenues
Billions of Yen
Operating Income (Loss)/Net Income (Loss)
Billions of Yen
Operating Income (Loss) Net Income (Loss)800400
1,200
1,600
0 ’13
’12
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’09
’08
’07
’06
’05
’04
’03 ’13
’12
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’04
’03
–400
–300
–200
–1000100200300
Millions of Yen
Thousands of
U.S. Dollars
For the Year: 2009 2010 2011 2012 2013 2013
Operating revenues �� 1,524,193円 1,444,941円 1,486,083円 1,508,084円 1,545,919円 16,447,696ドル
Electric �� 1,398,577 1,310,085 1,354,204 1,367,610 1,406,218 14,961,363
Other �� 125,616 134,856 131,878 140,474 139,700 1,486,333
Operating expenses �� 1,439,470 1,345,214 1,387,174 1,692,939 1,845,347 19,633,447
Electric �� 1,317,216 1,220,536 1,261,425 1,562,055 1,715,262 18,249,410
Other �� 122,254 124,677 125,748 130,883 130,085 1,384,037
Interest charges �� 35,770 35,292 34,025 34,025 37,407 397,992
Income (loss) before income
taxes and minority interests�� 55,859 67,610 48,318 (214,750) (334,298) (3,556,740)
Income taxes �� 21,481 25,404 19,245 (48,760) (2,195) (23,355)
Net income (loss) �� 33,991 41,812 28,729 (166,390) (332,470) (3,537,292)
Per share of common stock: Yen U.S. Dollars
Basic net income (loss) �� 71円.84 88円.38 60円.73 \(351.80) \(702.98) $(7.47)
Cash dividends applicable to
the year �� 60.00 60.00 60.00 50.00
At year-end: Millions of Yen
Thousands of
U.S. Dollars
Total assets �� 4,110,877円 4,054,192円 4,185,460円 4,428,093円 4,526,513円 48,159,517ドル
Net property �� 3,080,446 3,037,054 3,033,125 2,997,232 2,941,114 31,291,778
Long-term debt,
less current portion �� 1,811,744 1,724,972 1,714,429 2,188,601 2,526,729 26,882,963
Total equity �� 1,072,374 1,089,066 1,079,679 888,131 557,799 5,934,667
Download data
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 26
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Operating Results
In the year ended March 31, 2013 (fiscal
2012), Kyushu Electric Power recorded a
2.5% year on year increase in consolidated
operating revenues to 1,545円.9 billion.
While electricity sales volume in the
electricity business was lower for the year,
electricity sales revenues were lifted mainly
by the charge unit prices that had been
increased due to the fuel cost adjustment
system and other factors. Another
contributing factor was the subsidies
commensurate with electricity purchases
that the Group posted, based on a feed-in
tariff power purchase and sales system
that began in July 2012.
With regard to expenditures, operating
expenses increased by 9.0% to 1,845円.3
billion due to acute increases in thermal
fuel costs and costs for power purchases
in the electric business caused mainly by
the stoppage of our nuclear power stations.
Although the Group promoted emergency
and other management measures to promote
the rationalization and reduction of costs,
the result was a 114円.5 billion worsening
in operating loss to 299円.4 billion.
Other revenues rose by 2.0% year on
year to 14円.1 billion, primarily as increases
in investment returns from equity method
affiliates and other factors made up for a
decrease in gains on negative goodwill.
Other expenses rose by 7.9% to 45円.9
billion, mainly as a result of interest charges
increasing.
As a result, ordinary revenues rose by 2.5%
from the previous year to 1,560円.1 billion,
and ordinary expenses rose by 9.0% to
1,891円.3 billion. Consequently, ordinary loss
worsened 117円.6 billion to 331円.2 billion.
Furthermore, the water flow rate rose
12.8% above average (100%) during the
year under review. For this reason, Kyushu
Electric Power posted a reser ve for
fluctuations in water level of 3円.0 billion
in preparation for increased expenses
associated with future water shortages.
Total income taxes credit was 2円.1
billion, a 46円.5 billion change from the
credit figure of 48円.7 billion recorded in
fiscal 2011. This reflected a decrease in
the negative deferred income taxes figure
due mainly to the decision not to record
some deferred tax assets in fiscal 2012.
As a result, net loss worsened 166円.0
billion to 332円.4 billion. The net loss per
share was 702円.98, reflecting a decline of
351円.18 from the previous year’s net
earnings per share.
Segment Information
(Before Elimination of Internal Transactions)
(1) Electric Power
Electricity sales volume fell by 2.0% from
the previous fiscal year due to a decrease
in general demand, including domestic
lighting and commercial demand, as a result
of factors such as lower air conditioning and
heating demand caused by customers’ power
savings and lower temperatures than in the
previous fiscal year from June to July, as
well as higher temperatures from February
to March. Power demand from large-scale
industrial customers fell 1.4% year on year,
due to a decrease in production of electric
machinery and the impact of customers’
power saving, despite an increase in
production of steel and iron, chemicals. As
a result, total electricity sales volume fell
by 1.8% year on year to 83.78 billion kWh.
Electricity Sales Volume and Peak Load
Millions of kWh Thousands of kW
Management Discussion and Analysis
IT and Telecommunications
Billions of Yen
Energy-related Business
Billions of Yen
Electric Power
Billions of Yen
–5000500
1,000
1,500
–40004008001,200
1,400.7
1,312.1
1,356.374.182.986.51,369.5
–199.9
1,408,3
–312.6
’13
’12
’11
’10
’09050257510005.07.52.510.092.799.196.20.76.36.496.96.6
’12
’11
’10
’0994.57.6
’13050100150200036912
157.2
163.8
158.07.57.43.0164.54.7’12
’11
’10
’09
160.62.5’13010,000
30,000
20,000
40,000
50,000
60,000
70,000011,000
13,000
12,000
14,000
15,000
16,000
17,000
15,346
15,560
16,094 15,890 16,807 16,934 16,978 16,013
16,760
14,951
56,318
56,684
58,982
60,765
60,706
62,873
61,859
60,985
63,636
61,408
’12
’11
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’07
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’05
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’03
20,318
20,584
21,217
22,191
23,693
25,209
24,024
22,407
23,838
23,944
14,810
60,173
’13
23,614
Sales (left) Operating Income (Loss) (right)
Peak Load (right) General Demand (left) Large-scale Industrial (left)
Sales (left) Operating Income (right)
Sales (left) Operating Income (right)
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 27
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
On the supply side, we were impacted
by the stoppage of our nuclear power
stations and other factors, but we
responded mainly by increasing both our
own thermal power generation and electricity
purchased from other companies. Analysis
of the energy mix, including power generated
by Kyushu Electric Power and power
purchased from other companies, shows
nuclear power accounted for 0%, thermal
power for 88%, hydroelectric for 8% and
new energy sources for 4% of total power.
For the electric power segment, operating
revenues rose by 2.8% from the previous
fiscal year to 1,408円.3 billion, due to higher
charge unit prices resulting in an increase
in electricity sales from the impact of the
fuel cost adjustment system and other
factors, despite a decrease in electricity
sales volume. The segment posted an
operating loss of 312円.6 billion, a worsening
of 112円.6 billion from the segment loss in
the previous fiscal year, mainly due to large
increases in thermal fuel costs and costs
for power purchases.
(2) Energy-related Business
The operating revenues decreased by 2.4%
year on year to 160円.6 billion, mainly due
to a decline in the completion of power
generation facility maintenance and repair
work. Operating income fell by 46.1% to
2円.5 billion.
(3) IT and Telecommunications
The operating revenues decreased by 2.5%
year on year to 94円.5 billion, mainly due
to decreases in information systems
development work and sales of IT
equipment. Operating income increased by
14.7% to 7円.6 billion, mainly as a result
of depreciation expenses diminishing for
the fiber optic core cable leasing business.
(4) Other
The operating revenues were 27円.2 billion,
about the same as the previous fiscal year.
Operating income decreased by 21.2% to
2円.4 billion as a result of various factors
including an increase in depreciation
expenses accompanying the completed
construction of rental buildings.
Financial Position
(1) Cash Flows
Cash used in operating activities was
135円.1 billion in contrast to 16円.9 billion
in cash provided in the previous fiscal year.
This was mainly due to increases in thermal
power fuel costs and in costs for power
purchases, despite an increase in electricity
sales revenue in the electric power
business.
Cash used in investment activities
declined 22.7% to 176円.5 billion, mainly
as a result of efforts to improve capital
investment efficiency.
Cash flows from financing activities
increased by 13.5% to 412円.2 billion.
As a result, cash and cash equivalents
on March 31, 2013 stood at 379円.2 billion,
an increase of 101円.2 billion from the end
of the previous fiscal year.
(2) Assets, Liabilities and Net Assets
Total assets at the end of the fiscal year
under review were 4,526円.5 billion, an
increase of 2.2% from the end of the
previous fiscal year. This increase was
mainly due to a rise in current assets such
as cash and cash equivalents, despite a
decline in fixed assets as a result of
depreciation and efforts to improve capital
investment efficiency.
Total liabilities at the end of the fiscal
year under review were 3,968円.7 billion,
an increase of 12.1% from the end of the
previous fiscal year. This was mainly
attributable to higher interest-bearing debt.
Outstanding interest-bearing debt increased
427円.4 billion to 2,910円.7 billion.
Net assets fell by 37.2% from the end
of the previous fiscal year to 557円.7 billion,
mainly because of the posting of a net loss.
The equity ratio was 11.9%.
Consolidated Interest-bearing Debt and Equity Ratio
Billions of Yen %ROA%
Other
Billions of Yen010203001.53.04.524.426.526.01.63.23.327.33.1
’1227.22.4
’11
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’09 ’13
–5.0
–2.502.51.31.6 1.5
–2.7
’12
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’09 ’13
–4.6
’13
4,526.5
2,910.7
539.611.90
1,000
3,000
2,000
4,000
5,0000618122430
’12
’11
’10
’09
’08
’07
’06
’05
’04
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4,204.5
4,114.3
4,049.7
4,102.3
4,038.8
4,059.7
4,110.8
4,054.1
4,185.4
4,428.0
2,503.7
2,336.2
2,139.4
2,104.9
2,031.7
2,040.0
2,110.6
2,004.7
2,089.4
2,483.2
840.2
910.8
979.2
1,052.7
1,081.6
1,067.0
1,054.7
1,071.7
1,062.4
870.320.024.222.125.7
26.8 26.325.726.425.419.7
Sales (left) Operating Income (right)
Total Assets (left) Interest-bearing Debt (left) Shareholders’ Equity (left) Equity Ratio (right)ROE%
–50
–25025
3.2 3.9 2.7
–17.2
–47.2
’12
’11
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’09 ’13
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 28
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Business Risk Factors
The following is a list of some significant risk factors that may impact
on the operating results, financial position, and other aspects of the
Group (consolidated).
Forward-looking statements in this report reflect the judgment of
the Company as of March 31, 2013.1.Changes in systems
affecting the
electricity business
The Cabinet has approved the Policy on Electricity System Reform, among the aims of which
are the liberalization of the retail power sector as a whole in order to give customers a greater
range of choice, the invigoration of the wholesale power market in order to stimulate a
competitive environment, and the realization of broader coverage and greater neutrality in
the transmission and distribution sector. Discussions towards the implementation of the
Policy are proceeding.
The government is also proceeding with the re-examination of the Basic Energy Plan,
which establishes the nation’s basic orientation in relation to energy supply and demand,
encompassing elements such as the best mix of energy and nuclear energy policy.
Changes such as these to the systems affecting the electricity business could have an
impact on the Group’s performance.2.Status of
environment
surrounding
nuclear power
Turning to regulations concerning nuclear power, the revision of the Nuclear Reactor Regulation
Law in June 2012 saw the introduction of a variety of measures, including the enhancement
of countermeasures for severe accidents and the introduction of a system for approval of
extension of operating periods and a back-fit system. The Nuclear Regulation Authority is
currently progressing with deliberations towards the establishment of detailed regulations to
be enforced.
Believing, even in the wake of the accident at the Tokyo Electric Power Company’s
Fukushima Daiichi Nuclear Power Station in March 2011, that the importance of nuclear
power has not declined, Kyushu Electric Power is working steadily to further increase safety
by introducing emergency safety measures in order to ensure power sources and a water
supply in the event of an accident, in addition to implementing safety measures including
the installation of a seismically isolated building as a command post, as specified in 30
items of the Technical Findings concerning the Fukushima Power Station Accident.
In addition, looking towards the recommencement of operation of our nuclear power
stations at an early stage, we are seeking to respond appropriately to the full range of
regulations that are being enforced by working to increase safety through initiatives including
putting in place measures to respond to major accidents.
In future, basing ourselves firmly on the lessons learned from the accident at the Fukushima
Daiichi Nuclear Power Station, we will work continuously to implement voluntary measures
to further increase our safety and reliability, at the same time as actively seeking to gain
the understanding of the residents of our region.
However, depending on the status of operation of our nuclear power stations as it will
be affected by the future trends in regulations (the progress of governmental studies towards
restart, etc.) and other factors, it is possible that the results of the Kyushu Electric Group
will be affected by factors including increases in costs such as fuel costs and the cost of
procuring funds, and our judgment regarding the realizability of our deferred tax assets
resulting from the continuation of these cost burdens.3.Fluctuations in
electricity sales
volume
Electricity sales volume in the electricity business fluctuates according to factors such as
economic trends, temperature changes, the spread of residential solar power systems, and
trends in regulations and institutional reforms relating to energy conservation. As a result,
changes in these factors could have an impact on the Group’s performance.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 29
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates4.Fuel Price
Fluctuations
Fuel expenses in the electricity business fluctuate as a result of trends in cost, insurance
and freight (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 helps to ease the impact of fuel price volatility on the Group’s
performance.5.Nuclear Fuel
Cycle Costs
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, the Group’s performance could be affected by discussion trends related to nuclear
fuel cycle policy and increased costs based on revised cost estimates for future expenses.6.Cost of Measures
to Combat Global
Warming
In response to global warming, the Group aims for more efficient power generation that uses
less carbon, and to this end the Group conducts a variety of measures, such as safe and
stable nuclear power station operations, active development and introduction of renewable
energy, and maintenance and improvement of total thermal efficiency for thermal power
stations. Future changes in policies related to global warming could have an impact on the
Group’s performance.7.Businesses Other
than Electricity
The Group is enhancing its revenue basis by utilizing the group’s management resources
and steadily developing new business areas beyond the electricity business. In business
operations, we put emphasis on profitability and work to improve efficiency while pursuing
growth. In case planned profits cannot be achieved due to worsening business conditions,
the Group’s performance may be affected.8.Interest Rate
Fluctuations
The Group’s balance of interest-bearing debt as of the end of March 2013 was 2,910円.7
billion, which accounted for 64% of total assets of the group. Future changes in interest
rates have potential to affect the Group’s financial condition.
However, 95% 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 the Group’s
performance is therefore viewed as limited.9.Leakage of
Information
The Group has established strict internal frameworks to manage in-house information and
personal information, which Group companies hold, to ensure information security. Additionally,
we have implemented thorough information management 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 in-house information and personal information,
the Group’s performance may be affected.
10. Natural Disasters
To ensure a stable supply of electricity to our customers, the 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 or tsunamis
as well as unexpected accidents and illicit acts have the potential to affect the Group’s
performance.
We are also upgrading our risk management system and are preparing for numerous risks
that may have a material impact on business operations. Proper actions not taken in response
to a risk may adversely affect the Group’s performance.
11. Compliance
To be worthy of the trust of all its stakeholders, the Group conducts its business activities
from the perspective of its customers and local people in the regions it operate in by working
together to fully instill an awareness of compliance and complying with laws and regulations.
However, if problems such as compliance violations were to cause the Group’s social credibility
to decline, this could have an impact on the Group’s performance.
The Group will continue to work to build trust-based relationships with all its stakeholders.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 30
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2013 2012 2013
ASSETS
PROPERTY (Note 3):
Plant and equipment�� 9,628,349円 9,562,225円 102,440,144ドル
Construction in progress�� 220,817 184,857 2,349,373
Total�� 9,849,166 9,747,082 104,789,518
Less–
Contributions in aid of construction�� 160,700 160,083 1,709,760
Accumulated depreciation �� 6,747,352 6,589,765 71,787,978
Total�� 6,908,052 6,749,849 73,497,739
Net property �� 2,941,114 2,997,232 31,291,778
NUCLEAR FUEL �� 278,941 267,124 2,967,779
INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 4 and 15)�� 122,388 114,698 1,302,148
Investments in and advances to nonconsolidated subsidiaries
and affiliated companies (Note 15) �� 103,813 101,212 1,104,521
Reserve funds for reprocessing of irradiated nuclear fuel
(Notes 8 and 15)�� 240,155 220,293 2,555,121
Deferred tax assets (Note 11)�� 176,988 178,753 1,883,062
Other�� 20,186 15,351 214,772
Total investments and other assets�� 663,534 630,309 7,059,626
CURRENT ASSETS:
Cash and cash equivalents (Note 15)�� 379,207 277,945 4,034,554
Receivables (Note 15)�� 144,428 135,395 1,536,637
Allowance for doubtful accounts�� (945) (827) (10,057)
Inventories, principally fuel �� 73,077 77,908 777,504
Deferred tax assets (Note 11)�� 31,203 28,202 331,990
Prepaid expenses and other �� 15,950 14,802 169,701
Total current assets�� 642,922 533,427 6,840,332
TOTAL�� 4,526,513円 4,428,093円 $ 48,159,517
Consolidated Balance Sheet
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
March 31, 2013
See notes to consolidated financial statements.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 31
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2013 2012 2013
LIABILITIES AND EQUITY
LONG-TERM LIABILITIES:
Long-term debt, less current portion (Notes 6 and 15) �� 2,526,729円 2,188,601円 26,882,963ドル
Liability for employees’ retirement benefits (Note 7)�� 163,875 153,850 1,743,542
Reserve for reprocessing of irradiated nuclear fuel (Note 8)�� 346,913 358,651 3,690,961
Asset retirement obligations (Note 9)�� 221,025 211,989 2,351,589
Other�� 40,382 44,454 429,645
Total long-term liabilities�� 3,298,927 2,957,548 35,098,703
CURRENT LIABILITIES:
Current portion of long-term debt (Notes 6 and 15)�� 243,288 186,295 2,588,449
Short-term borrowings (Notes 10 and 15)�� 119,532 118,000 1,271,760
Commercial paper (Note 15)�� 33,000 351,101
Notes and accounts payable (Notes 14 and 15)�� 151,460 151,330 1,611,451
Accrued income taxes (Note 15) �� 2,197 2,585 23,384
Accrued expenses�� 76,038 83,785 809,006
Deferred tax liabilities (Note 11) �� 87 100 927
Other�� 39,873 39,099 424,229
Total current liabilities �� 665,478 581,197 7,080,310
RESERVE FOR FLUCTUATIONS IN WATER LEVEL �� 4,308 1,216 45,835
COMMITMENTS AND CONTINGENCIES (Note 17)
EQUITY (Note 12):
Common stock, authorized, 1,000,000,000 shares; issued,
474,183,951 shares in 2013 and 2012�� 237,304 237,304 2,524,788
Capital surplus�� 31,130 31,133 331,212
Retained earnings�� 252,145 594,080 2,682,680
Treasury stock–at cost, 1,246,883 shares in 2013 and
1,236,366 shares in 2012�� (2,373) (2,366) (25,250)
Accumulated other comprehensive income:
Unrealized gain on available-for-sale securities �� 19,212 12,331 204,404
Deferred gain (loss) on derivatives under hedge accounting�� 3,747 (179) 39,870
Foreign currency translation adjustments �� (1,481) (1,907) (15,767)
Total�� 539,684 870,396 5,741,938
Minority interests�� 18,114 17,735 192,729
Total equity�� 557,799 888,131 5,934,667
TOTAL�� 4,526,513円 4,428,093円 48,159,517ドル
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 32
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Consolidated Statement of Operations
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Year Ended March 31, 2013
Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2013 2012 2013
OPERATING REVENUES:
Electric�� 1,406,218円 1,367,610円 14,961,363ドル
Other�� 139,700 140,474 1,486,333
Total operating revenues �� 1,545,919 1,508,084 16,447,696
OPERATING EXPENSES (Note 13):
Electric�� 1,715,262 1,562,055 18,249,410
Other�� 130,085 130,883 1,384,037
Total operating expenses�� 1,845,347 1,692,939 19,633,447
OPERATING LOSS�� (299,428) (184,854) (3,185,750)
OTHER EXPENSES (INCOME):
Interest charges�� 37,407 34,025 397,992
Gain on negative goodwill �� (2,592)
Other–net�� (5,629) (2,752) (59,899)
Total other expenses–net�� 31,777 28,680 338,092
LOSS BEFORE INCOME TAXES AND PROVISION FOR RESERVE
FOR FLUCTUATIONS IN WATER LEVEL AND MINORITY INTERESTS�� (331,206) (213,534) (3,523,843)
PROVISION FOR RESERVE FOR FLUCTUATIONS IN WATER LEVEL�� 3,092 1,216 32,897
LOSS BEFORE INCOME TAXES AND MINORITY INTERESTS�� (334,298) (214,750) (3,556,740)
INCOME TAXES (Note 11):
Current �� 3,674 3,585 39,096
Prior years�� 494
Deferred�� (5,869) (52,839) (62,451)
Total income taxes�� (2,195) (48,760) (23,355)
NET LOSS BEFORE MINORITY INTERESTS �� (332,102) (165,990) (3,533,385)
MINORITY INTERESTS IN NET INCOME OF
CONSOLIDATED SUBSIDIARIES�� (367) (400) (3,906)
NET LOSS�� \ (332,470) \ (166,390) $ (3,537,292)
Yen U.S. Dollars
PER SHARE OF COMMON STOCK (Note 2.r.):
Basic net loss �� \(702.98) \(351.80) $(7.47)
Cash dividends applicable to the year�� 50.00
See notes to consolidated financial statements.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 33
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2013 2012 2013
NET LOSS BEFORE MINORITY INTERESTS �� \(332,102) \(165,990) $(3,533,385)
OTHER COMPREHENSIVE INCOME (Note 18):
Unrealized gain on available-for-sale securities�� 6,503 920 69,191
Deferred gain on derivatives under hedge accounting �� 3,918 1,695 41,688
Foreign currency translation adjustments�� (709) 730 (7,547)
Share of other comprehensive income in nonconsolidated
subsidiaries and affiliated companies�� 1,529 (593) 16,275
Total other comprehensive income�� 11,242 2,753 119,608
COMPREHENSIVE LOSS�� \(320,860) \(163,236) $(3,413,776)
TOTAL COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO:
Owners of the parent�� \(321,237) \(163,627) $(3,417,785)
Minority interests�� 376 390 4,008
Consolidated Statement of Comprehensive Income
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Year Ended March 31, 2013
See notes to consolidated financial statements.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 34
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Consolidated Statement of Changes in Equity
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Year Ended March 31, 2013
Thousands of Shares/Millions of Yen
Common Stock Treasury Stock Accumulated Other Comprehensive Income
Shares Amount
Capital
Surplus
Retained
Earnings
Shares Amount
Unrealized
Gain on
Available-for-
Sale Securities
Deferred Gain
(Loss) on
Derivatives under
Hedge Accounting
Foreign
Currency
Translation
Adjustments
Total
Minority
Interests
Total Equity
BALANCE AT APRIL 1, 2011 �� 474,183 237,304円 31,137円 \ 788,867 1,202 \(2,333) 11,356円 \(1,871) \(2,003) 1,062,458円 17,220円 1,079,679円
Net loss�� (166,390) (166,390) (166,390)
Cash dividends, 60円 per share�� (28,396) (28,396) (28,396)
Purchase of treasury stock�� 37 (43) (43) (43)
Disposal of treasury stock�� (4) (4) 10 5 5
Net change in the year �� 975 1,691 95 2,763 514 3,277
BALANCE AT MARCH 31, 2012�� 474,183 237,304円 31,133円 \ 594,080 1,236 \(2,366) 12,331円 \ (179) \(1,907) \ 870,396 17,735円 \ 888,131
Net loss�� (332,470) (332,470) (332,470)
Cash dividends, 20円 per share�� (9,464) (9,464) (9,464)
Purchase of treasury stock�� 12 (10) (10) (10)
Disposal of treasury stock�� (2) (1) 3 1 1
Net change in the year �� 6,880 3,927 425 11,232 379 11,612
BALANCE AT MARCH 31, 2013�� 474,183 237,304円 31,130円 \ 252,145 1,246 \(2,373) 19,212円 \ 3,747 \(1,481) \ 539,684 18,114円 \ 557,799
Thousands of U.S. Dollars (Note 1)
Accumulated Other Comprehensive Income
Common
Stock
Capital
Surplus
Retained
Earnings
Treasury
Stock
Unrealized
Gain on
Available-for-Sale
Securities
Deferred Gain
(Loss) on
Derivatives under
Hedge Accounting
Foreign
Currency
Translation
Adjustments
Total
Minority
Interests
Total Equity
BALANCE AT MARCH 31, 2012�� 2,524,788ドル 331,238ドル $ 6,320,673 $(25,181) 131,203ドル $ (1,911) $(20,291) $ 9,260,520 188,691ドル $ 9,449,211
Net loss�� (3,537,292) (3,537,292) (3,537,292)
Cash dividends, 0ドル.21 per share�� (100,701) (100,701) (100,701)
Purchase of treasury stock�� (111) (111) (111)
Disposal of treasury stock�� (26) 42 15 15
Net change in the year �� 73,201 41,781 4,523 119,506 4,038 123,545
BALANCE AT MARCH 31, 2013�� 2,524,788ドル 331,212ドル $ 2,682,680 $(25,250) 204,404ドル 39,870ドル $(15,767) $ 5,741,938 192,729ドル $ 5,934,667
See notes to consolidated financial statements.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 35
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Millions of Yen
Thousands of
U.S. Dollars (Note 1)
2013 2012 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Loss before income taxes and minority interests�� \(334,298) \(214,750) $(3,556,740)
Adjustments for:
Income taxes–paid�� (3,976) (20,523) (42,308)
Depreciation and amortization �� 212,735 244,470 2,263,380
Decommissioning costs of nuclear power units �� 2,627 3,106 27,949
Provision for liability for employees’ retirement benefits�� 10,024 9,129 106,656
Reversal of reserve for reprocessing of irradiated nuclear fuel �� (11,738) (10,279) (124,889)
Loss on disposal of plant and equipment�� 8,338 9,784 88,722
Provision for reserve for fluctuation in water level�� 3,092 1,216 32,897
Gain on negative goodwill�� (2,592)
Changes in assets and liabilities:
Increase in reserve funds for reprocessing of
irradiated nuclear fuel�� (19,862) (23,020) (211,323)
Increase in trade receivables �� (8,284) (13,961) (88,138)
Decrease (increase) in inventories�� 4,830 (19,287) 51,397
Increase in trade payables�� 7,567 40,552 80,518
Other–net�� (6,187) 13,065 (65,828)
Total adjustments �� 199,167 231,660 2,119,032
Net cash (used in) provided by operating activities�� (135,130) 16,909 (1,437,707)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures including nuclear fuel�� (183,922) (229,351) (1,956,825)
Payments for investments and advances �� (442) (6,729) (4,709)
Proceeds from sales of investment securities and
collections of advances�� 3,640 4,204 38,734
Other–net�� 4,177 3,596 44,450
Net cash used in investing activities�� (176,546) (228,279) (1,878,350)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of bonds �� 139,736 1,486,714
Repayments of bonds�� (120,000) (150,000) (1,276,731)
Proceeds from long-term loans�� 439,967 657,634 4,681,000
Repayments of long-term loans �� (69,296) (80,553) (737,271)
Net increase (decrease) in short-term borrowings�� 1,531 (2,770) 16,298
Net increase (decrease) in commercial paper�� 33,000 (30,000) 351,101
Cash dividends paid�� (9,489) (28,408) (100,967)
Other–net�� (3,200) (2,582) (34,056)
Net cash provided by financing activities�� 412,248 363,319 4,386,089
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON
CASH AND CASH EQUIVALENTS�� 690 7 7,344
NET INCREASE IN CASH AND CASH EQUIVALENTS �� 101,262 151,956 1,077,375
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR�� 277,945 125,988 2,957,179
CASH AND CASH EQUIVALENTS AT END OF YEAR�� \ 379,207 \ 277,945 $ 4,034,554
Consolidated Statement of Cash Flows
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Year Ended March 31, 2013
See notes to consolidated financial statements.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 36
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
Kyushu Electric Power Company, Incorporated (the "Company")
has prepared the accompanying consolidated financial statements
in accordance with the provisions set forth in the Japanese Financial
Instruments and Exchange Act, the Electricity Business Act and
their related accounting regulations and in accordance with
accounting principles generally accepted in Japan, which are different
in certain respects as to application and disclosure requirements
of International Financial Reporting Standards, 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.
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, 2012, to conform to the classifications used in the consolidated
financial statements for the year ended March 31, 2013.
The U.S. dollar amounts included herein are provided solely for
the convenience of readers and are stated at the rate of 93円.99
= U.S. 1,ドル the approximate exchange rate prevailing on March 31,
2013. The translations should not be construed as representations
that the Japanese yen amounts could be converted into U.S. dollars
at that or any other rate.
Japanese yen figures less than a million yen are rounded down
to the nearest million yen, except for per share data. As a result,
the totals shown in the accompanying consolidated financial
statements (both in yen and U.S. dollars) do not necessarily agree
with the sum of the individual amounts.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Consolidation and Application of the Equity Method — The
consolidated financial statements as of March 31, 2013, include
the accounts of the Company and its 40 (39 for 2012) subsidiaries
(together, the "Companies"). All significant intercompany transactions
and balances have been eliminated in consolidation. Investments
in 17 (16 for 2012) nonconsolidated subsidiaries and 14 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 excess of the cost of an acquisition over the fair value of
the net assets of an acquired subsidiary at the date of acquisition
is being amortized over a period of 5 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.
The fiscal year-end of four consolidated subsidiaries and several
nonconsolidated subsidiaries and affiliated companies is December
31. The Company consolidates such consolidated subsidiaries’
financial statements and accounts for investments in such
nonconsolidated subsidiaries and affiliated companies by the equity
method using their financial results for the year ended December
31. The effects of any significant transactions during the period
between the subsidiaries’ and affiliated companies’ fiscal year-end
and the Company’s fiscal year-end are reflected in the consolidated
financial statements.
b. Business Combination — Under the Accounting Standards Board
of Japan (the "ASBJ") Statement No. 21, "Accounting Standard
for Business Combinations" are as follows: (a) The standard requires
accounting for business combinations only by the purchase method.
(b) Under the standard, in-process research and development
acquired in the business combination are capitalized as an intangible
asset. (c) Under the standard, the acquirer recognizes the bargain
purchase gain in profit or loss immediately on the acquisition date
after reassessing and confirming that all of the assets acquired
and all of the liabilities assumed have been identified after a review
of the procedures used in the purchase price allocation.
c. 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 related to transmission lines is computed
using the straight-line method based on the estimated useful lives
of the transmission lines.
d. Impairment of Fixed Assets — The Companies review their fixed
assets 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.
Notes to Consolidated Financial Statements
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Year Ended March 31, 2013
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 37
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
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:
(a) Held-to-maturity debt securities are stated at cost with
discounts or premiums amortized throughout the holding periods;
(b) Available-for-sale securities, which are not classified as the
aforementioned securities and investment securities in
nonconsolidated subsidiaries and affiliated companies, are stated
at market value; and nonmarketable securities 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 investments in bonds that represent
short-term investments, all of which mature or become due within
three months of the date of acquisition.
h. Inventories — Inventories are stated at the lower of cost,
principally determined by the average method, or net selling value.
i. Foreign Currency Transactions — Receivables and payables
denominated in foreign currencies are translated into Japanese
yen at the rates in effect as of each balance sheet date.
j. Foreign Currency Financial Statements — The balance sheet
accounts of the consolidated foreign subsidiary, and nonconsolidated
foreign subsidiaries and foreign affiliated companies which are
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 are shown as "Foreign
currency translation adjustments" under accumulated other
comprehensive income in a separate component of equity.
Revenue and expense accounts of consolidated foreign
subsidiary are translated into yen at the average exchange rate.
k. Derivatives and Hedging Activities — Derivative financial
instruments are classified and accounted for as follows: (a) All
derivatives are recognized as either assets or liabilities and
measured at fair value, and gains or losses on derivative transactions
are recognized in the consolidated statement of operations and
(b) for such 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 derivatives are deferred until maturity
of the hedged transactions.
Liabilities denominated in foreign currencies for which foreign
exchange forward contracts and currency swaps are used to hedge
the foreign currency fluctuations are translated at the contracted
rate if the forward contracts and currency swaps qualify for hedge
accounting. Forward contracts and currency swaps applied for
committed transactions are measured at fair value and the
unrealized gains/losses are deferred until the underlying transactions
are completed.
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 and included in interest charges.
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.
The Companies account for the liability for employees’ retirement
benefits based on the projected benefit obligations and plan assets
of the pension fund at the end of the fiscal year.
In March 2013, the Company decided to shift part of its
contributory funded defined benefit pension plan to a defined
contribution pension plan from July 2013. The prior service cost
(deduction of liability) associated with this amendment will be
amortized (deduction of cost) using the straight-line method from
the fiscal year ended March 31, 2013, over 5 years, which is
within the average remaining service period of employees.
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.
n. Asset Retirement Obligations — Under the ASBJ Statement No.
18, "Accounting Standard for Asset Retirement Obligations," 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. The Company recognizes the asset retirement obligation
as the sum of the future decommissioning costs of nuclear power
unit imposed by the "Law on the Regulation of Nuclear Source
Material, Nuclear Fuel Material and Reactors," discounted at 2.3%.
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 based on a proportion of the current generation of
nuclear electric power to the estimated total life-time generation
of nuclear electric power of each unit.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 38
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
o. Income Taxes — The provision for income taxes is computed
based on the pretax income included in the consolidated statement
of operations. 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") are 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,
2013 and 2012, 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
Accounting Standard for Retirement Benefits — On May 17, 2012,
the ASBJ issued ASBJ Statement No. 26, "Accounting Standard for
Retirement Benefits" and ASBJ Guidance No. 25, "Guidance on
Accounting Standard for Retirement Benefits," which replaced the
Accounting Standard for Retirement Benefits that had been issued
by the Business Accounting Council in 1998 with an effective date
of April 1, 2000, and the other related practical guidance, and
followed by partial amendments from time to time through 2009.
Major changes are as follows:
(a) Treatment in the balance sheet
Under the current requirements, actuarial gains and losses and
past service costs that are yet to be recognized in profit or loss
are not recognized in the balance sheet, and the difference between
retirement benefit obligations and plan assets (hereinafter, "deficit
or surplus"), adjusted by such unrecognized amounts, is recognized
as a liability or asset.
Under the revised accounting standard, actuarial gains and
losses and past service costs that are yet to be recognized in
profit or loss shall be recognized within equity (accumulated other
comprehensive income), after adjusting for tax effects, and any
resulting deficit or surplus shall be recognized as a liability (liability
for retirement benefits) or asset (asset for retirement benefits).
(b)
Treatment in the statement of operations and the statement
of comprehensive income
The revised accounting standard does not change how to recognize
actuarial gains and losses and past service costs in profit or loss.
Those amounts would be recognized in profit or loss over a certain
period no longer than the expected average remaining working
lives of the employees. However, actuarial gains and losses and
past service costs that arose in the current period and have not
yet been recognized in profit or loss shall be included in other
comprehensive income and actuarial gains and losses and past
service costs that were recognized in other comprehensive income
in prior periods and then recognized in profit or loss in the current
period shall be treated as reclassification adjustments.
(c)
Amendments relating to the method of attributing expected
benefit to periods and relating to the discount rate and expected
future salary increases
The revised accounting standard also made certain amendments
relating to the method of attributing expected benefit to periods and
relating to the discount rate and expected future salary increases.
This accounting standard and the guidance for (a) and (b) above
are effective for the end of annual periods beginning on or after
April 1, 2013, and for (c) above are effective for the beginning of
annual periods beginning on or after April 1, 2014, or for the
beginning of annual periods beginning on or after April 1, 2015,
subject to certain disclosure in March 2015, both with earlier
application being permitted from the beginning of annual periods
beginning on or after April 1, 2013. However, no retrospective
application of this accounting standard to consolidated financial
statements in prior periods is required.
The Company expects to apply the revised accounting standard
for (a), (b) and (c) above from the beginning of the annual period
beginning on April 1, 2013, and is in the process of measuring
the effects of applying the revised accounting standard in future
applicable periods.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 39
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
3. PROPERTY
The breakdown of property at March 31, 2013 and 2012, was as follows:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Costs:
Electric power production facilities:
Hydroelectric power�� \ 805,385 \ 798,662 $ 8,568,840
Thermal power �� 1,469,187 1,466,669 15,631,320
Nuclear power�� 1,625,719 1,611,231 17,296,732
Internal-combustion engine power�� 128,329 127,453 1,365,350
Renewable power �� 106,843 105,974 1,136,750
Total�� 4,135,465 4,109,991 43,998,994
Transmission facilities�� 1,750,094 1,733,940 18,620,009
Transformation facilities �� 976,841 976,102 10,393,037
Distribution facilities�� 1,371,329 1,360,361 14,590,165
General facilities�� 392,018 392,340 4,170,856
Other electricity-related facilities �� 40,914 40,915 435,307
Other plant and equipment �� 961,684 948,574 10,231,772
Construction in progress�� 220,817 184,857 2,349,373
Total�� 9,849,166 9,747,082 104,789,518
Less–
Contributions in aid of construction�� 160,700 160,083 1,709,760
Accumulated depreciation�� 6,747,352 6,589,765 71,787,978
Carrying amount �� 2,941,114円 2,997,232円 31,291,778ドル
4. INVESTMENT SECURITIES
The costs and aggregate fair values of investment securities at March 31, 2013 and 2012, were as follows:
Millions of Yen
March 31, 2013 Cost Unrealized Gains Unrealized Losses Fair Value
Securities classified as:
Available-for-sale:
Equity securities�� 13,215円 28,274円 500円 40,989円
Debt securities�� 2,239 665 28 2,875
Other securities�� 361 19 3 377
Held-to-maturity�� 2,536 8 205 2,339
Millions of Yen
March 31, 2012 Cost Unrealized Gains Unrealized Losses Fair Value
Securities classified as:
Available-for-sale:
Equity securities�� 13,261円 19,365円 602円 32,025円
Debt securities�� 1,550 86 2 1,634
Other securities�� 420 4 25 399
Held-to-maturity�� 4,976 11 763 4,224
Thousands of U.S. Dollars
March 31, 2013 Cost Unrealized Gains Unrealized Losses Fair Value
Securities classified as:
Available-for-sale:
Equity securities�� 140,603ドル 300,822ドル 5,324ドル 436,101ドル
Debt securities�� 23,822 7,078 302 30,598
Other securities�� 3,850 203 38 4,014
Held-to-maturity�� 26,985 93 2,189 24,888
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 40
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
5. PLEDGED ASSETS
All of the Company’s assets amounting to 4,201,704円 million
(44,703,742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 17).
Certain assets of the consolidated subsidiaries, amounting to
53,978円 million (574,304ドル thousand), are pledged as collateral
for a portion of their long-term debt at March 31, 2013.
Investments in affiliated companies held by a consolidated
subsidiary, amounting to 41,020円 million (436,429ドル thousand),
are pledged as collateral for bank loans of the affiliated companies
and the subsidiary of the affiliated company at March 31, 2013.
6. LONG-TERM DEBT
Long-term debt at March 31, 2013 and 2012, consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Yen bonds, 0.35% to 3.65%, due serially to 2031 �� 1,193,392円 1,173,368円 12,697,017ドル
Swiss franc bonds, 2.625%, due 2014 �� 18,861 18,887 200,674
Loans from the Development Bank of Japan Inc., 0.577% to 4.60%,
due serially to 2028�� 278,145 224,716 2,959,311
Loans, principally from banks and insurance companies, 0.25% to 2.50%,
due serially to 2030��
Collateralized�� 33,322 34,343 354,537
Unsecured�� 1,234,421 913,897 13,133,539
Obligations under finance leases�� 11,874 9,683 126,332
Total �� 2,770,018 2,374,896 29,471,412
Less current portion�� 243,288 186,295 2,588,449
Long-term debt, less current portion�� 2,526,729円 2,188,601円 26,882,963ドル
The annual maturities of long-term debt outstanding at March 31, 2013, were as follows:
Year ending March 31 Millions of Yen
Thousands of
U.S. Dollars
2014�� \ 243,288 $ 2,588,449
2015�� 200,702 2,135,361
2016�� 352,675 3,752,266
2017�� 295,656 3,145,615
2018�� 351,584 3,740,661
Thereafter�� 1,326,110 14,109,058
Total�� 2,770,018円 29,471,412ドル
7. SEVERANCE PAYMENTS AND PENSION PLANS
Employees 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.
In March 2013, the Company decided to shift part of its
contributory funded defined benefit pension plans to a defined
contribution pension plan effective July 2013.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 41
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
The liability for employees’ retirement benefits at March 31, 2013 and 2012, consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Projected benefit obligation�� \ 475,455 \ 493,587 $ 5,058,575
Fair value of plan assets�� (353,866) (335,220) (3,764,935)
Unrecognized actuarial gain (loss)�� 23,917 (6,817) 254,471
Unrecognized prior service cost (deduction of liability)�� 18,195 2,260 193,589
Prepaid pension cost�� 173 41 1,842
Net liability�� \ 163,875 \ 153,850 $ 1,743,542
The components of net periodic benefit costs for the years ended March 31, 2013 and 2012, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Service cost �� 15,671円 15,456円 166,733ドル
Interest cost �� 9,727 9,651 103,499
Expected return on plan assets�� (6,701) (6,707) (71,299)
Recognized actuarial loss�� 10,384 9,327 110,480
Amortization of prior service cost �� (896) (367) (9,535)
Net periodic benefit costs�� 28,185円 27,360円 299,879ドル
Assumptions for actuarial computations for the years ended March 31, 2013 and 2012, were as follows:
2013 2012
Discount rate�� Mainly 2.0% 2.0%
Expected rate of return on plan assets �� Mainly 2.0% Mainly 2.0%
Recognition period of actuarial gain/loss�� Mainly 5 years Mainly 5 years
Amortization period of prior service cost �� Mainly 5 years Mainly 5 years
8. RESERVE FOR REPROCESSING OF IRRADIATED NUCLEAR FUEL
The reserve is provided for reprocessing costs of irradiated nuclear
fuel resulting from operation of nuclear power production facilities.
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 ("JNFL")
are calculated based on the expected future cash flows
discounted at 1.6% at March 31, 2013 and 2012,
(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 the 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 because 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 104,396円 million to
90,977円 million, and these costs are amortized over 12 years,
beginning on April 1, 2008. The balance of unrecognized past costs
as of March 31, 2013, was 53,070円 million (564,636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 differences might be incurred.
The balance of unrecognized difference as of March 31, 2013, is
a gain of 4,835円 million (51,449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 from 2005. The reserve
funds are provided to ensure the appropriate reprocessing of
irradiated nuclear fuel and presented as "Reserve funds for
reprocessing of irradiated nuclear fuel."
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 42
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
9. ASSET RETIREMENT OBLIGATIONS
The changes in asset retirement obligations for the years ended March 31, 2013 and 2012, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Balance at beginning of year�� 212,008円 207,855円 2,255,652ドル
Net change in the year�� 9,017 4,153 95,936
Balance at end of year�� 221,025 212,008 2,351,589
Less current portion�� 19
Asset retirement obligations, less current portion�� 221,025円 211,989円 2,351,589ドル
10. SHORT-TERM BORROWINGS
Short-term borrowings were generally represented by bank loans, bearing interest at rates ranging from 0.26% to 1.88% and from 0.24%
to 1.88% for the years ended March 31, 2013 and 2012, respectively.
11. INCOME TAXES
The Companies are subject to national and local income taxes. The aggregate normal statutory tax rates for the Company approximated
33.2% and 36.1% for the years ended March 31, 2013 and 2012, respectively.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities
at March 31, 2013 and 2012, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Deferred Tax Assets:
Tax loss carryforwards �� \ 156,014 \ 60,249 $ 1,659,908
Pension and severance costs �� 51,837 49,020 551,520
Depreciation�� 33,683 32,740 358,377
Asset retirement obligations �� 26,332 24,300 280,164
Reserve for reprocessing of irradiated nuclear fuel�� 22,192 20,958 236,119
Other�� 65,245 62,791 694,170
Less valuation allowance�� (128,180) (30,076) (1,363,764)
Deferred tax assets�� \ 227,126 219,982円 $ 2,416,497
Deferred Tax Liabilities:
Unrealized gain on available-for-sale securities�� \
8,470 \ 5,566 $ 90,118
Capitalized asset retirement costs�� 7,047 5,523 74,979
Deferred gain on derivatives under hedge accounting �� 1,870 504 19,903
Other�� 1,638 1,543 17,428
Deferred tax liabilities�� \ 19,026 \ 13,137 $ 202,429
Net deferred tax assets�� \ 208,100 206,844円 $ 2,214,067
A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying
consolidated statements of operations for the years ended March 31, 2013 and 2012, were as follows:
2013 2012
Normal effective statutory tax rate �� 33.2% 36.1%
Valuation allowance�� (29.1) (2.3)
Difference of tax rates on special income tax for reconstruction funding �� (3.4)
Adjustment of deferred tax assets at year-end resulting from tax-rate changes�� (12.5)
Other–net �� 0.0 1.4
Actual effective tax rate�� 0.7% 22.7%
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 43
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
At March 31, 2013, the Company and certain subsidiaries have
tax loss carryforwards aggregating 503,769円 million (5,359,823ドル
thousand), which are available to be offset against taxable income
of the Company, and these subsidiaries and will expire in nine
years. At March 31, 2013, the tax loss carryforwards for the
Company amounting to 311,687円 million (3,316,172ドル thousand)
and 175,798円 million (1,870,400ドル) will expire in the years ending
March 31, 2022 and 2021, respectively.
12. EQUITY
Japanese companies are subject to the Companies Act of Japan
(the "Companies Act"). The significant provisions in the Companies
Act that affect financial and accounting matters are summarized
below:
(a) Dividends
Under 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, 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 (noncash 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 that was 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.
13. RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to income were 8,175円 million (86,987ドル thousand) and 8,600円 million for the years ended
March 31, 2013 and 2012, respectively.
14. RELATED PARTY DISCLOSURES
Significant transactions of the Company with an affiliated company for the years ended March 31, 2013 and 2012, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
KYUDENKO CORPORATION
Transactions:
Purchase of construction works on distribution facilities and other 34,840円 39,622円 370,686ドル
Balances at year end:
Payables for construction works 4,577 4,953 48,699
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 44
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
15. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
Items Pertaining to Financial Instruments
(a) The Companies’ policy for financial instruments
The Companies use mainly long-term debt, including bonds and
loans, to raise funds required for investments in electric utility
plant and equipment, and repayments of bonds and loans. Cash
surpluses, if any, are invested in low-risk financial assets. Derivatives
are used, not for speculative purposes, but to avoid financial risks
as described in (b) below.
(b)
Nature and extent of risks arising from financial instruments,
and risk control system
Investment securities, mainly held-to-maturity debt securities and
equity securities issued by companies related through business,
and investments in and advances to nonconsolidated subsidiaries
and affiliated companies which have a quoted market price in an
active market are exposed to the risk of market price fluctuations.
Such market risk is managed by monitoring market values and
financial position of issuers on a regular basis. Investment securities
and investments in and advances to nonconsolidated subsidiaries
and affiliated companies which do not have a quoted market price
in an active market are managed by monitoring financial position
of issuers on a regular basis. In addition, the Company requires
its nonconsolidated subsidiaries and affiliated companies to submit
business plans and performance reports, and to consult in advance
on any items that could have a significant impact on the Companies’
business activities.
Reserve funds for reprocessing of irradiated nuclear fuel are
provided in accordance with a specific law to ensure the appropriate
reprocessing of irradiated nuclear fuel resulting from operation of
nuclear power production facilities.
Receivables are exposed to customer credit risk. Payment term
is set forth in electric power supply agreements and so on. The
Companies manage their credit risk from receivables by monitoring
of payment term and balances of each customer and identifying
and reduction of the default risk of customers in early stage.
Bonds and loans are mainly used to raise funds for investments
in electric utility plant and equipment. Bonds in a foreign currency
are exposed to the market risk of fluctuation in foreign currency
exchange rates, which is mitigated by using currency swaps.
Although a part of loans is exposed to market risk from changes
in variable interest rates, a consolidated subsidiary of the
Company mitigates such risk from long-term loans by using
interest rate swaps.
Payments terms of notes and accounts payable are less than
one year. Although a part of accounts payable to purchase fuel in
foreign currencies are exposed to the market risk of fluctuations
in foreign exchange, such risk is mitigated by using foreign exchange
forward contracts and currency swaps.
The Companies use foreign exchange forward contracts, currency
swaps, interest rate swaps and energy swap agreements to manage
their exposures to fluctuations in foreign exchange, interest rates
and fuel price, respectively.
Please see Note 16 for more details about derivatives.
Liquidity risk comprises the risk that the Companies cannot
meet their contractual obligations in full on maturity dates. The
Companies manage their liquidity risk by holding adequate volumes
of liquid assets based on monthly financial planning and diversifying
sources of their financing.
Fair values of financial instruments
The carrying amounts and aggregate fair values of financial instruments at March 31, 2013 and 2012, were as follows:
Millions of yen
March 31, 2013 Carrying Amount Fair Value Unrecognized Loss
Investment securities:
Held-to-maturity debt securities�� \ 2,536 \ 2,339 \ 197Available-for-sale securities�� 44,242 44,242
Investments in and advances to nonconsolidated subsidiaries and
affiliated companies�� 19,687 9,324 10,362
Reserve funds for reprocessing of irradiated nuclear fuel�� 240,155 240,155
Cash and cash equivalents�� 379,207 379,207
Receivables�� 144,428 144,428
Total�� \ 830,258 \ 819,698 10,559円
Long-term debt:
Bonds�� 1,212,254円 1,249,339円 37,085円
Loans �� 1,545,889 1,570,373 24,483
Short-term borrowings�� 119,532 119,532
Commercial paper�� 33,000 33,000
Notes and accounts payable�� 151,460 151,460
Accrued income taxes �� 2,197 2,197
Total�� 3,064,335円 3,125,904円 61,569円
Derivatives�� \ 5,726 \ 5,726
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 45
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Millions of yen
March 31, 2012 Carrying Amount Fair Value Unrecognized Loss
Investment securities:
Held-to-maturity debt securities�� \
4,976 \
4,224 \ 752Available-for-sale securities�� 34,059 34,059
Investments in and advances to nonconsolidated subsidiaries and
affiliated companies�� 18,787 10,893 7,894
Reserve funds for reprocessing of irradiated nuclear fuel�� 220,293 220,293
Cash and cash equivalents�� 277,945 277,945
Receivables�� 135,395 135,395
Total�� \ 691,458 \ 682,812 \ 8,646
Long-term debt:
Bonds�� 1,192,255円 1,229,695円 37,439円
Loans �� 1,172,958 1,189,831 16,872
Short-term borrowings�� 118,000 118,000
Notes and accounts payable�� 151,330 151,330
Accrued income taxes �� 2,585 2,585
Total�� 2,637,131円 2,691,443円 54,312円
Derivatives�� \
(98) \ (98)Thousands of U.S. Dollars
March 31, 2013 Carrying Amount Fair Value Unrecognized Loss
Investment securities:
Held-to-maturity debt securities�� $
26,985 $
24,888 $ 2,096
Available-for-sale securities�� 470,714 470,714
Investments in and advances to nonconsolidated subsidiaries and
affiliated companies�� 209,461 99,206 110,254
Reserve funds for reprocessing of irradiated nuclear fuel�� 2,555,121 2,555,121
Cash and cash equivalents�� 4,034,554 4,034,554
Receivables�� 1,536,637 1,536,637
Total�� $ 8,833,474 $ 8,721,123 112,351ドル
Long-term debt:
Bonds�� 12,897,691ドル 13,292,257ドル 394,566ドル
Loans �� 16,447,387 16,707,881 260,494
Short-term borrowings�� 1,271,760 1,271,760
Commercial paper�� 351,101 351,101
Notes and accounts payable�� 1,611,451 1,611,451
Accrued income taxes �� 23,384 23,384
Total�� 32,602,777ドル 33,257,837ドル 655,060ドル
Derivatives�� $
60,923 $
60,923
The securities whose fair value cannot be reliably determined
are excluded from investment securities and investments in and
advances to nonconsolidated subsidiaries and affiliated companies
(see (b) below).
Advances are excluded from investments in and advances to
nonconsolidated subsidiaries and affiliated companies because
they are immaterial.
Long-term debt contains current portion of them, and obligations
under finance leases are excluded because they are immaterial.
Derivatives are stated at the net amount.
(a)
Methods used to calculate fair values of financial instruments
Investment securities, and investments in and advances to
nonconsolidated subsidiaries and affiliated companies
The fair values of investment securities and investments in and
advances to nonconsolidated subsidiaries and affiliated companies
are measured at the quoted market price of the exchanges for the
equity securities and some of debt securities, and principally at
the quoted price obtained from the financial institution for other
debt securities. The information of the fair values for the investment
securities by classification is included in Note 4.
Reserve funds for reprocessing of irradiated nuclear fuel
Reserve funds for reprocessing of irradiated nuclear fuel are
provided in accordance with a specific law to ensure the appropriate
reprocessing of irradiated nuclear fuel resulting from operation of
nuclear power production facilities.
The funds must be used in accordance with a plan approved
by the Japanese Government. The fair value is based on the carrying
amount determined by discounting the cash flows related to the
using plan.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 46
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Cash and cash equivalent, and receivables
The carrying amounts of cash and cash equivalents, and receivables
approximate fair values because of their short maturities.
Bonds
The fair values of bonds are based on market price. Bonds
denominated in a foreign currency for which currency swaps are
used to hedge the foreign currency fluctuations (see Note 16) are
treated as yen-denominated bonds. The fair values are determined
by discounting the cash flows related to the bonds at the Company’s
assumed corporate borrowing rate.
Long-term loans
The fair values of long-term loans at fixed interest rates are
determined by discounting the cash flows related to the loans at
the Company’s assumed corporate borrowing rate. Because loans
at variable interest rates reflect short-term movements in market
interest rates and there has been no substantial change in the
Company’s credit position since the loans were implemented, the
carrying amounts approximate fair values. A part of loans is
subjected to interest rate swaps, which qualify for hedge accounting
and meet specific matching criteria (see Note 16), and the fair
values are determined by discounting the cash flows related to
the loans with the interest rate swaps at the Company’s assumed
corporate borrowing rate.
Short-term borrowings, commercial paper, notes and accounts
payable, and accrued income taxes
The carrying amounts of short-term borrowings, commercial paper,
notes and accounts payable and accrued income taxes approximate
fair values because of their short maturities.
Derivatives
The information of the fair value for derivatives is included in
Note 16.
(b)
Financial instruments whose fair value cannot be reliably determined
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Investment securities:
Available-for-sale:
Equity securities�� \ 73,141 \ 73,116 $ 778,181
Other securities�� 2,468 2,546 26,267
Investments in and advances to nonconsolidated subsidiaries and
affiliated companies:
Equity securities�� 71,202 70,321 757,551
Other securities �� 7,819 6,995 83,197
Total�� 154,632円 152,979円 1,645,197ドル
Maturity analysis for financial assets and securities with contractual maturities
Millions of Yen
March 31, 2013 Due in one year or less
Due after one year
through five years
Due after five years
through ten years
Due after ten years
Investment securities:
Held-to-maturity debt securities�� \ 470 199円 10円 1,856円
Available-for-sale securities with contractual maturities�� 375 13 47 2,463
Reserve funds for reprocessing of irradiated nuclear fuel�� 27,407
Cash and cash equivalents�� 379,207
Receivables�� 144,428
Total�� 551,889円 212円 57円 4,319円
Thousands of U.S. Dollars
March 31, 2013 Due in one year or less
Due after one year
through five years
Due after five years
through ten years
Due after ten years
Investment securities:
Held-to-maturity debt securities�� $
5,004 2,127ドル 106ドル 19,746ドル
Available-for-sale securities with contractual maturities�� 4,000 138 507 26,207
Reserve funds for reprocessing of irradiated nuclear fuel�� 291,596
Cash and cash equivalents�� 4,034,554
Receivables�� 1,536,637
Total�� 5,871,792ドル 2,266ドル 613ドル 45,954ドル
Reserve funds for reprocessing of irradiated nuclear fuel are provided
for reprocessing costs of irradiated nuclear fuel charged by JNFL.
Using plan of the reserve funds is disclosed only about due in one
year or less, to comply with agreements with JNFL and to avoid
disadvantage, possibly caused by disclosure, to the interested parties.
Please see Note 6 for annual maturities of long-term debt.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 47
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
16. DERIVATIVES
The Company enters into foreign exchange forward contracts, currency
swaps, interest rate swaps and energy swap agreements to manage
its exposures to fluctuations in foreign exchanges, interest rates and
fuel price, 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 not subject to any
market risk except for abandoning potential income by market
fluctuations in hedged items.
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 the administrative section monitors them based on internal
policies.
Derivative transactions to which hedge accounting is applied
Millions of Yen
March 31, 2013 Hedged Item Contract Amount
Contract Amount due
after One Year
Fair Value
Currency swaps:
Buying CHF (Note b) �� Bonds 19,183円
Buying USD (Note a)�� Accounts payable 31,599円 17,383円 4,979円
Energy swap agreements:
(fixed price payment, floating price receipt) (Note a) �� Accounts payable \ 4,045 \ 1,430 \ 746
Interest rate swaps:
(fixed rate payment, floating rate receipt) (Note b)�� Long-term loans \ 2,592 \ 1,870
Total�� 5,726円
Millions of Yen
March 31, 2012 Hedged Item Contract Amount
Contract Amount due
after One Year
Fair Value
Currency swaps:
Buying CHF (Note b) �� Bonds 19,523円 19,183円
Buying USD (Note a)�� Accounts payable 48,090円 31,599円 \(667)
Energy swap agreements:
(fixed price payment, floating price receipt) (Note a) �� Accounts payable \ 6,660 \ 4,045 \ 568
Interest rate swaps:
(fixed rate payment, floating rate receipt) (Note b)�� Long-term loans \ 3,299 \ 2,592
Total�� \ (98)
Thousands of U.S. Dollars
March 31, 2013 Hedged Item Contract Amount
Contract Amount due
after One Year
Fair Value
Currency swaps:
Buying CHF (Note b) �� Bonds 204,102ドル
Buying USD (Note a)�� Accounts payable 336,205ドル 184,952ドル 52,978ドル
Energy swap agreements:
(fixed price payment, floating price receipt) (Note a) �� Accounts payable $ 43,040 $ 15,220 $ 7,944
Interest rate swaps:
(fixed rate payment, floating rate receipt) (Note b)�� Long-term loans $ 27,577 $ 19,895
Total�� 60,923ドル
Notes:
(a) The fair value of derivative transactions is measured at the quoted price obtained from the financial institution.
(b) Bonds denominated in foreign currencies for which currency swaps are used to hedge the foreign currency fluctuations are translated at the contracted rate if the currency swaps
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 is recognized and included in interest charges.
As a result, the fair values of such currency swaps and interest rate swaps are included in those of hedged items (i.e., bonds and long-term loans, respectively) in Note 15.
(c) The contract or notional amounts of derivatives, which are shown in the above table, do not represent the amounts exchanged by the parties and do not measure the Companies’
exposure to market risk.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 48
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
17. COMMITMENTS AND CONTINGENCIES
At March 31, 2013, 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 at March 31, 2013, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
Co-guarantees of loans, mainly in connection with procurement of fuel�� 94,695円 1,007,507ドル
Guarantees of employees’ loans�� 79,671 847,657
Guarantees under debt assumption agreements�� 70,000 744,760
Other�� 21,850 232,474
Under the debt assumption agreements, the Company was contingently liable for the redemption of the domestic bonds transferred
to banks.
18. COMPREHENSIVE INCOME
The components of other comprehensive income for the years ended March 31, 2013 and 2012, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
Other comprehensive income:
Unrealized gain on available-for-sale securities
Gains arising during the year �� \ 9,240 \ (114) $ 98,316
Reclassification adjustments to profit or loss �� 217 27 2,314
Amount before income tax effect�� 9,458 (87) 100,631
Income tax effect�� (2,955) 1,008 (31,439)
Total�� \ 6,503 \ 920 $ 69,191
Deferred gain on derivatives under hedge accounting
Gains arising during the year �� \ 6,041 \ 840 $ 64,276
Adjustments for amounts transferred to the initial carrying amounts of
hedged items �� (216) 1,807 (2,302)
Amount before income tax effect�� 5,824 2,647 61,974
Income tax effect�� (1,906) (951) (20,285)
Total�� \ 3,918 1,695円 $ 41,688
Foreign currency translation adjustments
Adjustments arising during the year�� \ (709) \ 730 $ (7,547)
Share of other comprehensive income in nonconsolidated subsidiaries
and affiliated companies
Gains arising during the year �� \ 1,504 \ (625) $ 16,010
Reclassification adjustments to profit or loss �� 24 32 264
Total�� \ 1,529 \ (593) $ 16,275
Total other comprehensive income�� 11,242円 2,753円 119,608ドル
19. SEGMENT INFORMATION
(1) Description of reportable segments
The Companies’ reportable segments are those for which separately
financial information is available and regular evaluation by the
Company’s management is being performed in order to decide
how resources are allocated among the Companies. Therefore,
the Companies consist of the industry electric power, energy
related business, information technology (IT) and telecommunications
and other.
The energy related business consists of obtaining, storing,
gasifying, supplying and selling LNG and other businesses related
to energy.
IT and telecommunications consists of provision of
telecommunications.
Other consists of environment and recycling, lifestyle-oriented
services and others.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 49
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
(2) Methods of measurement for the amounts of sales, profit, assets and other items for each reportable segment
The accounting policies of each reportable segment are consistent to those disclosed in Note 2, "Summary of Significant Accounting Policies."
(3) Information about sales, profit, assets and other items at March 31, 2013 and 2012, was as follows:
Millions of Yen2013Reportable segment
Electric Power
Energy related
Business
IT and
Telecommunications
Other Total Reconciliations Consolidated
Sales:
Sales to external customers �� 1,406,218円 \ 65,997 \ 60,732 \ 12,970 1,545,919円 1,545,919円
Intersegment sales or transfers�� 2,121 94,637 33,849 14,310 144,918 \(144,918)
Total�� 1,408,339円 160,634円 \ 94,581 \ 27,281 1,690,837円 \(144,918) 1,545,919円
Segment (loss) profit�� \ (312,666) \ 2,578 \ 7,600 \ 2,477 \ (300,010) \ 581 \ (299,428)
Segment assets�� 4,053,317 325,456 141,469 149,749 4,669,992 (143,479) 4,526,513
Other:
Depreciation�� 180,189 10,241 18,716 6,358 215,505 (2,770) 212,735
Increase in property and nuclear fuel�� 155,668 9,662 17,421 1,528 184,281 (2,985) 181,295
Millions of Yen2012Reportable segment
Electric Power
Energy related
Business
IT and
Telecommunications
Other Total Reconciliations Consolidated
Sales:
Sales to external customers �� 1,367,610円 \ 67,039 \ 61,151 \ 12,283 1,508,084円 1,508,084円
Intersegment sales or transfers�� 1,927 97,517 35,811 15,026 150,283 \(150,283)
Total�� 1,369,537円 164,557円 \ 96,963 \ 27,310 1,658,368円 \(150,283) 1,508,084円
Segment (loss) profit�� \ (199,995) \ 4,779 \ 6,628 \ 3,145 \ (185,442) \ 587 \ (184,854)
Segment assets�� 3,962,355 312,340 146,244 155,274 4,576,215 (148,121) 4,428,093
Other:
Depreciation�� 211,074 12,059 19,066 5,266 247,467 (2,996) 244,470
Increase in property and nuclear fuel�� 193,856 20,231 21,432 11,679 247,199 (3,237) 243,962
Thousands of U.S. Dollars2013Reportable segment
Electric Power
Energy related
Business
IT and
Telecommunications
Other Total Reconciliations Consolidated
Sales:
Sales to external customers �� 14,961,363ドル $ 702,175 $ 646,155 $ 138,003 16,447,696ドル 16,447,696ドル
Intersegment sales or transfers�� 22,567 1,006,886 360,137 152,257 1,541,849 $(1,541,849)
Total�� 14,983,931ドル 1,709,061ドル 1,006,292ドル $ 290,261 17,989,546ドル $(1,541,849) 16,447,696ドル
Segment (loss) profit�� $ (3,326,592) $
27,430 $
80,862 $ 26,362 $ (3,191,938) $ 6,188 $ (3,185,750)
Segment assets�� 43,124,984 3,462,668 1,505,154 1,593,245 49,686,053 (1,526,535) 48,159,517
Other:
Depreciation�� 1,917,114 108,958 199,129 67,650 2,292,853 (29,472) 2,263,380
Increase in property and nuclear fuel�� 1,656,221 102,807 185,359 16,259 1,960,648 (31,769) 1,928,879
Notes:
(a) Reconciliations of the segment (loss) profit and the segment assets are intersegment transaction eliminations.
(b) Segment (loss) profit is adjusted to reflect operating loss on the consolidated statement of operations.
(c) Significant negative goodwill was incurred in the other business segment for the year ended March 31, 2012, and the gain on negative goodwill was 2,470円 million.
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.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 50
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 51
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Nonconsolidated Five-year Financial Summary
Kyushu Electric Power Company, Incorporated
Years Ended March 31
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 93円.99 = U.S. 1,ドル the approximate rate of exchange at March 31, 2013.)
* Figures less than a million yen are rounded down.
Download data
Millions of Yen
Thousands of
U.S. Dollars
For the Year: 2009 2010 2011 2012 2013 2013
Operating revenues �� 1,430,161円 1,339,807円 1,387,517円 1,406,770円 1,448,876円 15,415,221ドル
Electric�� 1,400,792 1,312,103 1,356,317 1,369,537 1,408,339 14,983,931
Other�� 29,369 27,704 31,199 37,232 40,536 431,290
Operating expenses�� 1,326,654 1,229,154 1,269,718 1,569,533 1,721,006 18,310,524
Personnel�� 136,794 172,720 162,650 167,965 151,844 1,615,536
Fuel�� 305,600 213,007 284,857 520,282 679,722 7,231,856
Purchased power �� 149,939 113,668 137,063 206,042 269,582 2,868,202
Depreciation�� 195,232 196,741 197,977 202,151 180,180 1,917,012
Maintenance �� 197,806 195,118 175,986 176,007 147,924 1,573,834
Reprocessing costs of
irradiated nuclear fuel�� 34,166 33,787 30,795 21,631 17,352 184,617
Decommissioning costs of
nuclear power units�� 8,309 9,093 7,524 3,106 2,627 27,949
Disposal cost of high-level
radioactive waste �� 8,668 10,372 8,885 6,010 3,247 34,555
Disposition of property�� 22,877 16,478 15,181 15,334 14,501 154,291
Taxes other than
income taxes �� 88,453 87,473 87,680 83,142 82,265 875,259
Subcontract fee �� 74,835 79,226 67,728 65,948 64,485 686,085
Rent �� 35,760 34,333 32,789 31,276 29,298 311,715
Other�� 68,210 67,133 60,598 70,634 77,974 829,605
Interest charges�� 33,444 33,145 32,150 32,266 35,581 378,566
Income (loss) before
income taxes�� 44,164 50,356 35,778 (229,754) (343,051) (3,649,871)
Net income (loss)�� 26,916 28,307 20,443 (174,983) (338,050) (3,596,662)
Per share of common stock: Yen U.S. Dollars
Basic net income (loss) �� 56円.85 59円.80 43円.19 \(369.74) \(714.33) $(7.60)
Cash dividends applicable
to the year�� 60.00 60.00 60.00 50.00
At year-end: Millions of Yen
Thousands of
U.S. Dollars
Total assets�� 3,834,124円 3,776,569円 3,890,891円 4,110,950円 4,201,704円 44,703,742ドル
Net property �� 2,847,638 2,811,063 2,811,194 2,757,023 2,704,014 28,769,170
Long-term debt,
less current portion�� 1,715,779 1,641,073 1,627,260 2,090,311 2,425,739 25,808,479
Total equity 981,539 984,109 967,515 766,700 429,287 4,567,368
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 52
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
ASSETS
PROPERTY:
Plant and equipment�� 8,948,491円 8,888,533円 95,206,845ドル
Construction in progress�� 215,616 186,647 2,294,033
Total�� 9,164,108 9,075,180 97,500,878
Less–
Contributions in aid of construction�� 152,797 152,162 1,625,681
Accumulated depreciation �� 6,307,295 6,165,994 67,106,027
Total�� 6,460,093 6,318,157 68,731,708
Net property �� 2,704,014 2,757,023 28,769,170
NUCLEAR FUEL �� 278,941 267,124 2,967,779
INVESTMENTS AND OTHER ASSETS:
Investment securities�� 113,301 105,002 1,205,468
Investments in and advances to subsidiaries and
affiliated companies�� 150,372 151,627 1,599,879
Reserve funds for reprocessing of irradiated nuclear fuel�� 240,155 220,293 2,555,121
Deferred tax assets �� 158,382 161,466 1,685,103
Other�� 17,701 12,606 188,331
Total investments and other assets�� 679,914 650,996 7,233,904
CURRENT ASSETS:
Cash and cash equivalents�� 324,155 231,959 3,448,826
Receivables�� 120,344 109,314 1,280,394
Allowance for doubtful accounts�� (512) (511) (5,448)
Fuel and supplies�� 59,839 63,160 636,662
Deferred tax assets �� 28,283 24,784 300,923
Prepaid expenses and other �� 6,723 7,097 71,530
Total current assets�� 538,834 435,806 5,732,888
TOTAL�� 4,201,704円 4,110,950円 44,703,742ドル
Nonconsolidated Balance Sheet
Kyushu Electric Power Company, Incorporated
March 31, 2013 (Unaudited)
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 93円.99 = U.S. 1,ドル the approximate rate of exchange at March 31, 2013.)
* Figures less than a million yen are rounded down.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 53
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
LIABILITIES AND EQUITY
LONG-TERM LIABILITIES:
Long-term debt, less current portion �� 2,425,739円 2,090,311円 25,808,479ドル
Liability for employees’ retirement benefits�� 147,341 136,875 1,567,634
Reserve for reprocessing of irradiated nuclear fuel�� 346,913 358,651 3,690,961
Asset retirement obligations �� 219,450 211,840 2,334,829
Other�� 15,700 19,585 167,041
Total long-term liabilities�� 3,155,145 2,817,264 33,568,946
CURRENT LIABILITIES:
Current portion of long-term debt�� 219,011 164,403 2,330,160
Short-term borrowings�� 117,000 111,000 1,244,813
Commercial paper�� 33,000 351,101
Accounts payable�� 132,333 130,003 1,407,954
Accrued expenses�� 82,448 92,419 877,207
Other�� 29,170 27,942 310,353
Total current liabilities �� 612,964 525,769 6,521,591
RESERVE FOR FLUCTUATIONS IN WATER LEVEL �� 4,308 1,216 45,835
EQUITY:
Common stock, authorized, 1,000,000,000 shares; issued,
474,183,951 shares in 2013 and 2012�� 237,304 237,304 2,524,788
Capital surplus:
Additional paid-in capital �� 31,087 31,087 330,755
Other capital surplus�� 19 22 211
Retained earnings:
Legal reserve �� 59,326 59,326 631,197
Retained earnings–carryforward�� 81,997 429,512 872,409
Unrealized gain on available-for-sale securities�� 17,826 11,634 189,662
Deferred gain (loss) on derivatives under hedge accounting�� 3,859 (59) 41,059
Treasury stock–at cost 948,557 shares in 2013 and
938,904 shares in 2012�� (2,134) (2,129) (22,714)
Total equity�� 429,287 766,700 4,567,368
TOTAL�� 4,201,704円 4,110,950円 44,703,742ドル
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 54
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates
Nonconsolidated Statement of Operations
Kyushu Electric Power Company, Incorporated
Year Ended March 31, 2013 (Unaudited)
Millions of Yen
Thousands of
U.S. Dollars
2013 2012 2013
OPERATING REVENUES:
Electric�� 1,408,339円 1,369,537円 14,983,931ドル
Other�� 40,536 37,232 431,290
Total operating revenues�� 1,448,876 1,406,770 15,415,221
OPERATING EXPENSES:
Electric:
Personnel�� 151,844 167,965 1,615,536
Fuel�� 679,722 520,282 7,231,856
Purchased power�� 269,582 206,042 2,868,202
Depreciation�� 180,180 202,151 1,917,012
Maintenance�� 147,924 176,007 1,573,834
Reprocessing costs of irradiated nuclear fuel �� 17,352 21,631 184,617
Decommissioning costs of nuclear power units�� 2,627 3,106 27,949
Disposal cost of high-level radioactive waste�� 3,247 6,010 34,555
Disposition of property�� 14,501 15,334 154,291
Taxes other than income taxes�� 82,265 83,142 875,259
Subcontract fee�� 64,485 65,948 686,085
Rent�� 29,298 31,276 311,715
Other�� 77,974 70,634 829,605
Total�� 1,721,006 1,569,533 18,310,524
Other�� 33,683 32,959 358,370
Total operating expenses �� 1,754,689 1,602,492 18,668,895
OPERATING LOSS�� (305,812) (195,722) (3,253,673)
OTHER EXPENSES (INCOME):
Interest charges�� 35,581 32,266 378,566
Other–net�� (1,434) 550 (15,266)
Total other expenses–net�� 34,146 32,816 363,300
LOSS BEFORE INCOME TAXES AND PROVISION FOR RESERVE
FOR FLUCTUATIONS IN WATER LEVEL�� (339,959) (228,538) (3,616,973)
PROVISION FOR RESERVE FOR FLUCTUATIONS IN WATER LEVEL�� 3,092 1,216 32,897
LOSS BEFORE INCOME TAXES�� (343,051) (229,754) (3,649,871)
INCOME TAXES:
Current �� 64 684
Prior years�� 486
Deferred�� (5,065) (55,257) (53,892)
Total income taxes�� (5,001) (54,771) (53,208)
NET LOSS�� \ (338,050) \ (174,983) $ (3,596,662)
Yen U.S. Dollars
PER SHARE OF COMMON STOCK:
Basic net loss �� \(714.33) \(369.74) $(7.60)
Cash dividends applicable to the year�� 50.00
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 93円.99= U.S. 1,ドル the approximate rate of exchange at March 31, 2013.)
* Figures less than a million yen are rounded down.
Section 1
Kyushu Electric
Power’s Summary
Section 2
Midterm
Management Policy
Section 4
Safety Measures for
Nuclear Power Plant
Section 5
Management Base
Section 6
Financial Section
page 55
Kyushu Electric Power Company Annual Report 2013
Section 3
Increasing of
Electricity Rates