ANNUAL REPORT 2015
In order for our customers to lead harmonious lives we will pro-
vide steady and reliable, Earth-friendly energy, while anticipating
global trends and making full use of our advanced technology and
abundant experience with energy and the environment.
Steady and reliable,
Earth-friendly energy.1We will offer services that place the gaining of trust from the
customer as top priority. We would like to listen to the various
voices of our customers in order to respond to their needs with
services that truly satisfy.
Services that truly satisfy.2In company with the people of Kyushu, we will work together
to take action while thinking of our children’s future and of the
prosperity of the region. And from there, we will look to Asia and
the world.
In company with Kyushu. And to
Asia and the world.3We will discover solutions that lead to a better tomorrow
through honest, sincere and active discussions, believing in
people’s potential and mutually respecting personalities, and
we will put these solutions into practice.
Discovering solutions, and putting
them into practice.4Kyushu Electric Power Summary
Kyushu Electric Power’s Mission
Clicking on the index entry will take you to that page.
"Make a brighter
future for generations
to come"
Towards a comfortable and environment-friendly lifestyle
today and for generations to come.
To fulfill this mission, we are dedicated to achieving the fol-
lowing 4 goals:
Kyushu Electric Power’s Mission
1/90 Kyushu Electric Power Company Annual Report 2015
Section 1
Kyushu Electric Power Summary
Corporate Profile
Contents Financial and Non-Financial Highlights
Our Business
Section 2
Management Message
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
CONTENTS
Disclaimer Regarding Forward-looking Statements
Statements made in this annual report regarding Kyushu Electric Power
Group’s strategies and forecasts and other statements that are not historical
facts are forward-looking statements based on management’s assump-
tions and beliefs in light of information currently available, and should not
be interpreted as promises or guarantees. Owing to various uncertainties,
actual results may differ materially from these statements. Investors are
hereby cautioned against making investment decisions solely on the basis
of forward-looking statements contained herein.
Sendai Nuclear Power Plant (photo taken June 2015)
• 
The photo in the center is the reactor building
of Sendai Nuclear Power Plant Unit 1 (became
operational in 1984, output of 890,000 kW). In
the right rear is Unit 2 (became operational in
1985, output of 890,000 kW).
• 
The photo to the lower left shows a condensate
tank and other equipment erected as a tornado
protection measure in response to new regulatory
requirements (enacted July 8, 2013) (Shown in
the exploded image on the lower right of page 27.)
Section 1
Kyushu Electric Power Summary
Section 4
Management Base
Section 3
Special Feature
Section 2
Management Message
Section 5
Financial Information
33 Corporate Governance
35 Interviews with External Directors
37 CSR Management
38 Compliance Management Promotion
39 Promotion of Environmental Management
40 Board of Directors and Auditors25 Initiatives for Ensuring the Safety and
Security of Nuclear Power07 The Kyushu Electric Group’s Medium-
Term Management Policy15 Message from the Chairperson and
the President
17 Interview with the President
45 Financial Information
86 Overview of Power Generation Facilities
87 Subsidiaries and Affiliated Companies89 Outline of Kyushu Electric
Power’s History
90 Corporate Data
01 Kyushu Electric Power’s Mission
03 Corporate Profile
04 Our Business
05 Financial and Non-Financial Highlights
Contents
2/90 Kyushu Electric Power Company Annual Report 2015
Section 1
Kyushu Electric Power Summary
Kyushu Electric Power’s Mission Corporate Profile Financial and Non-Financial Highlights
Our Business
Section 2
Management Message
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
Since its establishment in 1951, the mission of the Kyushu Electric Power Company has been to assure quality and comfort in life for customers and their local com-
munities by providing a stable supply of electricity.
We have weathered many changes, including post-war reconstruction and subsequent high economic growth, the oil shocks of the 1970s and the recent
deregulation of the electric power industry. In the decades to come, we will continue to fulfill our social responsibility through the discharge of our mission.
Snapshot of Kyushu
16.20 million tons 1.68 million people
Crude Steel Production (FY2014) Foreign Visitors to Kyushu (2014)
42,233 km2
Area (As of October 1, 2014)
11.2% 11.6%
10.3% 13.5%
8.7% 14.7%
28.0%
27.0%
13.06 million
Population (As of October 1, 2014)
11.2% 11.6%
10.3% 13.5%
8.7% 14.7%
28.0%
27.0%
11.2% 11.6%
10.3% 13.5%
8.7% 14.7%
28.0%
27.0%
Around 44 trillion
Nominal Gross Regional Product (FY2012)
645.9 billion yen
IC Production Value (FY2014)
11.2% 11.6%
10.3% 13.5%
28.0%
27.0%
1.29 million
Automobile Production (FY2014)
11.6%
13.5%
11.6%
13.5%
14.7%
28.0%
27.0%
11.2% 11.6%
28.0%
Sources: ‌
Geospatial Survey of All Prefectures, Cities, Towns and Municipalities in Japan, Geospatial Information Authority of Japan; Population Estimate, Ministry of Internal Affairs and Communications; Annual
Report on Prefectural Accounts, Cabinet Office; Recent Trends in the Kyushu Economy, Kyushu Bureau of Economy, Trade and Industry; Statistical Survey on Legal Migrants, Ministry of Justice
Corporate Profile
(377,972 km2)(500 trillion)
(9.59 million tons)
(127.08 million)
(2,303.1 billion yen)
(109.84 million tons) (14.41million people)
Note: Figures in parentheses are totals for all of Japan.
Corporate Profile
3/90 Kyushu Electric Power Company Annual Report 2015
Section 1
Kyushu Electric Power Summary
Kyushu Electric Power’s Mission Contents Financial and Non-Financial Highlights
Our Business
Section 2
Management Message
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
The Kyushu Electric Power Group comprises Kyushu Electric Power Co., Ltd., 55 subsidiaries and 28* affiliated companies. The Group’s business activities consist
of Electric Power, Energy-related business, IT and Telecommunications, and Other. As the center of the Group, Kyushu Electric Power is engaged in general electric
power business activities.
*As of March 31, 2015
IPP business
Consulting
Utility business
India: Preparatory Survey for
Barauni Super Critical
Thermal Power Project
Ghana: Preparatory Survey for
Power Supply to Accra
Central
Tanzania: Support in
formulating an
electric power system
master plan
Ukraine: Survey on the status
of CCT introduction
Ilijan project
(Output of 1.2 million kW)
Philippines: Batangas City
Sarulla Geothermal IPP (under development)
[output: approximately 320,000 kW]
Indonesia: Northern Sumatra
Vietnam: Survey on 40 MW-class
hydroelectric power generation
in Lao Cai Province
Vietnam: Preparatory Study on the Ultra
Super Critical Coal-Fired Power
Plants in Bac Lieu
Phu My III project
(Output of 744,000 kW)
Vietnam: Ba Ria-Vung Tau Province
Rwanda: Support on drawing up
electric power plans
promoting the development
of geothermal energy
Senoko Power Ltd.
(Output of 3.3 million kW)
Singapore
Inner Mongolia wind power
project (Output of 50,000 kW)
China: Chifeng
China: Business related to energy
savings in the textile
manufacturing industry
Tuxpan II and V projects
(Output of 495,000 kW x 2)
Mexico: State of VeracruzIlijan project
Hsin Tao Power Project
(Output of 600,000 kW)
Taiwan: Hsinchu County
Djibouti: Preparatory Survey
for the Power Sector
Improvement Plan
Composition of Generated and
Purchased Electric Power (kWh)
Composition of Capacity for All Facilities (kW)
(Including power purchased from other companies)
Total
87,783
million kWh
Petroleum15%Coal32%Nuclear0%Solar, wind, biomass5%Hydro7%Geothermal2%LNG39%Total
23.11
million kW
Petroleum21%Coal17%Nuclear23%Hydro17%Geothermal1%Solar, wind, biomass2%LNG19%Main Supply Facilities
(As of March 31, 2015)
Business Development Overseas
(Fiscal 2014)
Our Business
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
さんかく
さんかく
さんかく
さんかく
さんかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
しかく
さんかく
Takigami 27,500
Takarajima 200
Kikai 2,100
Hetono 2,000
Shin China 19,100
Yoron 2,210
Shin Yoron 5,600
Tatsugo 60,000
Naze 21,000 Shin Kikai
12,600
Koniya 4,750
Shin Tokunoshima 21,000
Kametsu 7,500
Kodakarajima 110
Tairajima 150
Kuchinoshima 170
Nakanoshima 200
Suwanosejima 160
Kodakarajima 110
Shin Kokura
1,800,000
Yamagawa 25,960
Ioujima 300
Kuchierabujima 300
Shin Tanegashima
24,000
Tanegashima Daiichi
16,500
Kuroshima 320 Takeshima 190
Iwayado
52,000
Ohira 500,000
Omarugawa 1,200,000
Kamishiiba
93,200
Tsukabaru 63,050
Morotsuka 50,000
Sendai
1,000,000
Sendai NPS
1,780,000
Ogiri 30,000
Oyodogawa Daini 71,300
Reihoku 1,400,000
Koshikijima Daiichi
14,250
Oyodogawa Daiichi
55,500
Hitotsuse
180,000
Toyotama 42,000
Oronoshima 330
Buzen Diesel 3,600
Shin Iki 24,000
Karatsu
875,000
Genkai NPS
3,478,000
Shin Arikawa
60,000
Ainoura
875,000
Tenzan
600,000
Omuta
3,000
Matsuura 700,000
Sasuna 5,100
Fukue Daini
21,000
Uku 3,000
Ashibe
16,500
Izuhara 8,600
Shin Oita
2,295,000
Otake
12,500
Buzen 1,000,000
Matsubara 50,600
Yanagimata
63,800
Hatchoubaru 110,000
Hatchoubaru binary 2,000
Karita 735,000
Koshikijima 250
Noma-misaki
3,000
Hydroelectric power station (over 50,000 kW)
Pumped storage power station
Thermal power station
Nuclear power station
Geothermal power station
Internal combusion power station
Wind power station
Photovoltaic power station
Main substation, switchyard
500 kV power line
220 kV power line
Facilities of other companies
The numerical values of the plants show
outputs of kW
Introductory notes
Amamioshima
Kikaijima
Tokunoshima
Okinoerabujima
Yorontou
Tokara Islands
Amami Islands
Chugoku Electric Power Co., Inc.
TsushimaIkiTanegashima
Yakushima
Himuka
Our Business
4/90 Kyushu Electric Power Company Annual Report 2015
Section 1
Kyushu Electric Power Summary
Corporate Profile
Kyushu Electric Power’s Mission Contents Financial and Non-Financial Highlights
Section 2
Management Message
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31
Non-Financial Highlights
Financial Highlights
CO2 emissions per unit of electricity sales volume
Kyushu Electric Power engages in measures to prevent global warming from both
the supply side (activation of nuclear power generation, development and intro-
duction of renewable energy, etc.) and as a user (our own efforts to conserve and
reduce energy use, etc.). However, our nuclear power plants, which do not emit
CO2, have been shut down since the Great East Japan Earthquake. As a result,
our CO2 emissions per volume of sales are up 70% compared to pre-earthquake
(fiscal 2010) levels.
Geothermal Power Facility Capacity
[Our percentage of the total for all electric utilities]
Kyushu Electric’s geothermal power facilities, which include the Hatchoubaru
Geothermal Power Station—one of the largest in Japan—account for around 40%
of the country’s total, and electricity generated and purchased is more than 50% of
the total for Japan. As geothermal power emits essentially no CO2 and is a clean and
stable energy source that is unaffected by fuel costs, we plan to continue proactively
developing this power, including through Group companies. We will do so while
maintaining harmony with the local community and taking into overall consideration
the technical aspects of such generation, as well as its economic performance and
location environments.
Financial and Non-Financial Highlights
Billions of Yen
Millions of
U.S. Dollars
For the Year: 2011 2012 2013 2014 2015 2015
Operating revenues��������������������������������������� 14,860円 15,080円 15,459円 17,911円 18,734円 15,577ドル
Operating income (loss)��������������������������������� 989 (1,848) (2,994) (958) (433) (360)
Net income (loss)������������������������������������������� 287 (1,663) (3,324) (960) (1,146) (953)
Millions of kWh
Electricity sales volume��������������������������������� 87,474 85,352 83,787 84,450 81,279
General demand����������������������������������������� 63,636 61,408 60,173 60,827 57,860
Large-scale industrial customers��������������� 23,838 23,944 23,614 23,623 23,419
At Year-end: Billions of Yen
Millions of
U.S. Dollars
Total assets ��������������������������������������������������� 41,854円 44,280円 45,265円 45,498円 47,847円 39,783ドル
Shareholders’ equity*1
��������������������������������� 10,624 8,703 5,396 4,755 4,315 3,587
Interest-bearing debt������������������������������������� 20,894 24,832 29,107 31,167 33,379 27,754
Yen U.S. Dollars
Basic net income (loss) ������������������������������� 60円.73 \(351.80) \(702.98) \(203.19) \(242.38) $(2.01)
Cash dividends applicable to the year��������� 60.00 50.00
Financial Ratios: %
ROA*2
������������������������������������������������������������� 1.5 (2.7) (4.6) (1.5) (0.6)
ROE*3
������������������������������������������������������������� 2.7 (17.2) (47.2) (18.9) (25.3)
Equity ratio����������������������������������������������������� 25.4 19.7 11.9 10.5 9.0
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 120円.27 = U.S.1,ドル the approximate rate of exchange at March 31, 2015.)
*1 Financial highlights are provided for fiscal years ended March 31.
*2 Figures in parentheses are negative.
*3 Shareholders’ equity = Equity – Minority interests
*4 ROA = After-tax operating income / Average total assets at beginning and ending of the fiscal year
*5 ROE = Net income / Average equity at beginning and ending of the fiscal year
*6 Figures less than a billion yen are rounded down.
0.598
kg-CO2/kWh
Fiscal 2014
0.348
kg-CO2/kWh
Fiscal 2010
Note: Calculated based on the Japanese government’s formula for CO2 emissions by business. Source: Electric Power Survey Statistics (Fiscal 2014), Agency for Natural Resources and Energy
(Excluding private
power generation)
(March 31)201543.5%
Financial and Non-Financial Highlights
5/90 Kyushu Electric Power Company Annual Report 2015
Section 1
Kyushu Electric Power Summary
Corporate Profile
Kyushu Electric Power’s Mission Contents Our Business
Section 2
Management Message
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
1,922.7
2,030.8
Operating Revenues Revenue Share by Segment
IT and Telecommunications4.8%Energy-related Business
9.2% Electric Power
84.8%
*Before eliminating internal transactions
Operating Revenues
(2015)
2,030.8
billion
Energy-related Business
186.6
Billions of Yen
2,400
1,800
1,2006000
IT and Telecommunications96.51,636.620152014201320122011Other1.2%1,658.3 1,690.8
Electric Power
1,721.8
Other 25.7
Segment Information (Before Eliminating Internal Transactions)
Billions of Yen
2,000
1,500
1,000500020152014201320122011Operating Revenues
Billions of Yen1200-120-240-36020152014201320122011
Operating Income (Loss) Net Income (Loss)
Operating Income (Loss)/Net Income (Loss)
Billions of Yen %
1,200900600300040302010020152014201320122011
Shareholders’ Equity (left) Equity Ratio (right)
Shareholders’ Equity/Equity Ratio
Promoting Diversity
Recognizing that human resources are the wellspring that enhances corporate value, we promote diversity in our working environment to ensure that all people can work enthusi-
astically and maximize their individual capabilities, regardless of gender, age, rank or other factors. As part of these efforts, from fiscal 2007 we have enhanced our comprehensive
activities based on the pillars of supporting female career development, raising awareness and reforming the organizational culture, and supporting a balance between work and
home life, and we are steadily expanding the range of career possibilities open to women. In December 2014, we formulated the "Action Plan for Promoting Women to Manage-
ment Positions." This plan sets the target of doubling the number of women newly promoted to management positions, compared with the number for the past five years. This is
part of our efforts to further cultivate female employees.20152007
[Female Employee Hiring Rate] [Regular April Hires]
23.7%7.8%(Clerical only 30.4% 55.2%)20152007
[Number of Female Managers] [March 31]7147
Financial and Non-Financial Highlights
6/90 Kyushu Electric Power Company Annual Report 2015
Section 1
Kyushu Electric Power Summary
Corporate Profile
Kyushu Electric Power’s Mission Contents Our Business
Section 2
Management Message
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
Up to now, we have continued to support the lives and
economic activities of customers in the Kyushu region and
grow together with the regional community by delivering a
stable supply of low-priced, high-quality energy.
We formulated a Medium-Term Management Policy
(fiscal 2013–2015) in April 2013, and amid the severe
financial situation and supply–demand relations caused by
the suspension of operation of all our nuclear power sta-
tions, we have worked to achieve greater managerial ef-
ficiency, resume operation of nuclear power stations, take
measures to cope with such supply–demand relations and
gain greater public confidence.
On the other hand, looking at the external business
environment, we are going to enter a period of real com-
petition in the years to come as the full liberalization of
the retail market due to the electric power system reforms
scheduled for April 2016.
In this competitive environment, in order to achieve
our mission to "Make a brighter future for generations to
come" and continue to be trusted and chosen by custom-
ers as an energy supplier (See page 1 for details), we need
to accelerate our reforms on a groupwide basis. We there-
fore recently formulated the new Kyushu Electric Power
Group Medium-Term Management Policy, which covers
the five years from fiscal 2015 to fiscal 2019.
This policy consists of our "Vision for 2030" and the
three main strategies to attain the vision. It also shows
the priority measures we should take during the five-year
period from fiscal 2015 to fiscal 2019.
We aim to achieve sustained growth and provide all
stakeholders with enhanced value by pushing forward with
these initiatives on a groupwide basis.
We ask all stakeholders to give their continued support
and cooperation to our Group.
The Kyushu Electric Group’s Medium-Term Management Policy
The Kyushu Electric Group’s Medium-Term Management Policy7/90Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
Interview with the President
Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
Kyushu Electric Group Medium-term Management Policy
Vision for 2030
Aiming to become a corporate group that provides Japan’s best energy services
—Everyone eventually asks the Kyuden Group for energy!—
Three Pillars of strategy‌
Grow into a corporate group that provides energy services in Kyushu where we operate from a company that
delivers electricity and develops together with the regional community and society by meeting the diverse energy
needs of customers‌
Make the most of the Kyuden Group strengths to achieve sustained growth through energy service businesses
for overseas and outside Kyushu and renewable energy business‌
Enhance the organizational strength required to implement strategies to establish a robust business foundation
[Reference: Current generating power, etc.]
Overseas power generation (equity ownership in power output): 1.5 million kW
Renewable energy: 1.5 million kW
Direction of Future Strategy
Kyushuisthe
basisforall
businesses
Expanding
business
activitiestocoverAsiaandtheworld
Robust
business
foundation
Energy service business in Kyushu
Business development in a growing market
Overseas energy business
(Goal) 5 million kW
Outside Kyushu energy business
(Goal) 2 million kW
Renewable energy business
(Goal) 4 million kW
Electricity, gas, distributed, energy-saving, etc.
Active use of
strengths, input of
management
resources
Organizational abilities for
reform and growth and new
sources of profit
Future
business
Always
pursuit
Favorable growth
cycle
Overseas/outside
Kyushu
KyushuareaEnergy service business
Electricity business Gas business, etc.
Overseas & outside
Kyushu electricity business
(Including renewable energy business)
Overseas and outside Kyushu
energy services business*1*1 In overseas and outside Kyushu markets, for the immediate future, we will focus on the electrical power
business where we can display our strength in high-level maintenance and operation technology but will
also enter the energy service business starting from services that we can provide.*2 Relationships with energy service business and expected synergistic effects will be taken into consideration.
Image of Expansion of Business Areas
Actively use our strengths to
move into a growing area
Evolution
Corporate group
that provides
energy services
Company that delivers electricity
(Current) Gas
Fuel tradingESPSocial and lifestyle
services business*2
The Kyushu Electric Group’s Medium-Term Management Policy8/90Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
Interview with the President
Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
(1) Gaining more Kyuden fans through provision of diverse energy services
[One-stop energy services (for corporate clients)]‌Energy-related sales operations will be integrated into Kyuden’s retail operations to offer all optimal combinations of energy services through a
single channel.
[Services closely tied to the lives of customers (for ordinary households)]‌We will offer service menus that suit the lifestyles of customers to provide enjoyment and excitement.‌We are considering making customers’ power consumption visible at our website’s "Energy-saving, Comfortable Life" page starting from April
2016. Data on power consumption will be obtainable every 30 minutes through smart meters, which have been installed since November 2009.
[Gas business]‌In addition to the previous wholesaling of gas supplies, we will start retail sales gas in earnest as part of our energy services.
Outline of the Fiscal 2015 Management Plan
Meeting the diverse energy needs of customers in the Kyushu region
Strategy
PillarI[Gas Retail Business]
*2 Facilities for LNG storage, vaporization and delivery
LNG terminal
<Regions equipped with pipelines >
<Regions not equipped with pipelines>
Supply via outsourced gas pipeline operator*1
Satellite equipment*2
Trucks
Supply via LNG trucks
*1 We will consider the business systems needed in response to the
full liberalization of the gas retail business, slated for 2017.
Factories,
commercial facilities, etc.
Ordinary households
Factories,
commercial facilities, etc.
The Kyushu Electric Group’s Medium-Term Management Policy9/90Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
Interview with the President
Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
(2) Enhancing the competitiveness of power sources and fuel procurement abilities‌We will secure stable and competitive power sources with
the imminent full liberalization of the retail market in mind.
 We will develop System No. 3 x 4 for the Shin-Oita
Power Station (LNG, output of 480,000 kW, operations
to commence in July 2016) and Unit 2 for the Matsuura
Power Station‌We will maintain our competitiveness so that we can
respond flexibly even if the strengths and weaknesses of
power sources change with various environmental changes
and possess nuclear power, coal or LNG-burning thermal
power, and renewable energy such as hydraulic and geo-
thermal power in a well-balanced manner.‌Firmly determined not to cause accidents like the one that occurred at the Fukushima Daiichi Nuclear Power Station, we will continuously work
to improve the safety and reliability of nuclear power and use it as a power source that is effective in ensuring energy security, mitigating global
warming, and supplying electrical power economically.‌We will enhance competitiveness in fuel procurement and enhance its flexibility by stepping up our initiatives for the entire fuel value chain such
as introducing fuel trading and promoting investments for upstream interests.
(3) 
Improving and making effective use of power
transmission and distribution networks
As a company with equipment covering the entire Kyushu region, we will
contribute to sustained development and growth of the region through
business activities such as creation and operation of equipment.‌Building a 500,000 V Hinuka trunk line‌Test project to improve the supply–demand balance for large-
capacity electricity storage systems‌Building smart grids
In order to ensure that high-quality power is supplied in a reli-
able manner even if sunlight and other types of renewable energy
whose output is unstable comes into wide use, we will conduct
tests on both the supplier and user sides, obtain data that meet the
conditions of our equipment and the characteristics of local mar-
kets, and examine such data, thus solving issues to be addressed
in building smart grids in the future.‌Building related systems in preparation for the full-fledged intro-
duction of smart meters
As of March 31, 2015, we have introduced approximately 830,000
smart meters. We aim to increase this number to around 8 million
by fiscal 2023.
Construction of the 500,000-Volt Himuka Trunk Line
Kanmon link line
Omarugawa
Higashikyushu
Kumamoto
Nakakyushu
Minamikyushu
Miyazaki
Reihoku
Matsuura
J-Power’s
Matsuura
Sendai (nuclear)
Himuka
Genkai (nuclear)
BuzenChuo500,000-volt
Himuka trunk line
Kitakyushu
Sefuri
Nishikyushu
[Legend]
: 500,000-volt
transmission line
: 220,000-volt
transmission line
: 500,000-volt
Himuka trunk line
being built in
this project
Location
Matsuura, Nagasaki
Prefecture
Generating
power
1 million kW
Power
generation
method
Pulverized coal-burning
ultra-super critical (USC)*
thermal power generation
Fuel Coal
Start of
operation
June 2020 (scheduled)
Conceptual drawing of the Matsuura Power Station Unit 2 at its completion
*Ultra-super critical (USC)
This is a highly efficient method of generating electricity that reduces environmental impact, boosting thermal
efficiency by operating at temperatures and pressures above the critical point of water.
Outline of the Matsuura Power Station Unit 2 Plan
J-Power’s Matsuura
Power Station
Matsuura Power
Station Unit 2
Length About 124 km
Number of
steel towers291Start of
construction
November 2014
Start of
operation
June 2019
The Kyushu Electric Group’s Medium-Term Management Policy
10/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
Interview with the President
Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
(1) 
Strengthening the overseas electricity business [2030 goal for equity ownership in electricity output: 5 million
kW (3.5 million kW more than the current level)]‌We will expand the IPP business mainly in
Asia whose market has high growth potentialConstruction is currently underway at the
Sarulla geothermal IPP project in Indo-
nesia (generating power: 320,000 kW
[three systems]). The generators will start
operation in 2016 or thereafter as soon
as they are online.‌We will strive to contribute to the interna-
tional community by developing human
resources and overcoming issues such as
low-cost, stable power supply through IPP
business and overseas consulting
Developing in growth markets to make the most of Kyuden Group strengths
Strategy
PillarIILocation of the Sarulla geothermal IPP project
in Indonesia
View from a production test site
Large-Scale Storage Battery Demonstration Business
In the future, in order to ensure stable power supply, we will continue to take measures to connect renewable energy sources smoothly. As part of these initiatives,
we will carry out a government-subsidized test project to improve the supply–demand balance for large-capacity electricity storage systems.
• Demonstration content—We will conduct a demonstration to improve the
supply–demand balance by connecting a large-scale
storage battery to the grid, utilizing its electrical stor-
age capacity in the same manner as pumped storage.—We will conduct a demonstration of measures to
effectively utilize the large-scale storage battery
through appropriate grid voltage control.
• Storage battery capacity—Output: 50,000 kW
(storage: approximately 300,000 kWh)
Note: One of the largest in the world
• Storage battery location—Within the site of the Buzen Power Station (Buzen,
Fukuoka Prefecture)
• Demonstration period—FY2015–2016
[Demonstration Business of Improving the Supply–Demand Balance Using a Storage Battery
(Demonstration Concept)]
Buzen Power Station (thermal) Buzen, Fukuoka Prefecture)
• 
Site the storage battery in empty space within the site of the
power station
• 
Storage battery capacity: 50,000 kW
(approximately 300,000 kWh*)*Equivalent to the amount of electricity used by 1,000 homes
in one month*Storage battery site area Approximately 12,000 m2
(Equivalent to 1.5 soccer pitches)
Storage battery unit
AC/DC rectifier
Sarulla area
Indonesia
(Sumatra
Island)
Malaysia
Singapore
Equator
The Kyushu Electric Group’s Medium-Term Management Policy
11/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
Interview with the President
Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
Geothermal: Sugawara Binary Cycle Power Station (Kokonoe, Kyushu Prefecture)
The Sugawara Binary Cycle Power Station* (5,000 kW), which makes effective use of geothermal wells owned
by the town of Kokonoe in Oita Prefecture, commenced operations in Jun 2015. This is Japan’s first geother-
mal power development project that involves collaboration between a local government and a private enterprise
(Kyuden Mirai Energy).* Binary power generation utilizes comparatively low-temperature steam and heated water that cannot be used by conventional geothermal power generation systems. This
method is expected to find application on islands that have abundant geothermal sources and for generation at hot springs. Sugawara Binary Cycle Power Station
Planned site
3-1, Nakasode, Sodegaura-shi, Chiba Prefecture
(The site is owned by Idemitsu Kosan.)
Power generation
method
Ultra-super critical (USC) power generation
Scale of power
generation
Maximum: 2 million kW (1 million kW x two units)FuelCoal (Burning a mixture of biomass and coal is
also under consideration.)
Start of operation Scheduled for the mid-2020s
Planned power station
site (Sodegaura, Chiba
Prefecture)
(2) 
Develop the electrical power business outside Kyushu [2030 goal for power sources developed outside Ky-
ushu: 2 million kW (2 million kW more than the current level)]‌We will develop power sources outside Kyushu for our own use mainly through alliances with other companiesWe established Chiba-Sodegaura Energy Co., Ltd. (May 2015)‌We will consider ways to secure electrical power supply capabilities for our retail sales until power sources are developed by using material
exchanges and other means of procurement effectively in addition to power transmission from within Kyushu region
(3) 
Expanding renewable energy business
[2030 development goal: 4 million kW (2.5 million kW more than the current level*)]
* Breakdown: +800,000 kW for geothermal power; +200,000 kW for hydroelectric power; +1.1 million kW for wind power, and +400,000 kW for other in Japan and abroad‌In July 2014, we established Kyuden Mirai Energy Co., Inc., a general developer of renewable energy sources. By liaising with Kyushu Electric,
Kyuden Mirai Energy will meet the local community’s broad-ranging needs through a single channel.‌We will aim at risk diversification and portfolio development with future policy trends and technological innovation in mindDeveloping Renewable Energy in Collaboration with Group Companies
Through development of the Sugawara Binary Cycle Power Station and by participating in demonstration tests for next-generation floating
wind generation (offshore).‌Leveraging the expertise we have cultivated in the Kyushu region to expand our business in other parts of Japan, as well as overseas.
Outline of the power station plan
We recently agreed with Idemitsu Kosan Co., Ltd. and Tokyo Gas Co., Ltd. to form an alliance to consider developing coal-burning thermal power stations
jointly. To that end, the three companies established the Chiba-Sodegaura Energy Co., Ltd. on May 1, 2015.
Taking into consideration the impending full liberalization of the electricity retail market, the three partner companies will make the best use of the strength
of their respective value chains and other assets to achieve safer, lower-priced, and more stable power supply, thus meeting the demands and expectations of
society as energy companies. They will also aim at making the utmost effort to take appropriate environmental measures and contribute to local economies.
Chiba
Tokyo
Kanagawa
The Kyushu Electric Group’s Medium-Term Management Policy
12/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
Interview with the President
Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
(1) Developing innovative human resources who take on new challenges‌Through a groupwide, cross-functional team project, we will cultivate an organizational culture that embraces challenges.
(2) Creating organizations that respond swiftly to changes‌We will respond to full liberalization and the licensing system.To win out over the competition, we will concentrate on sales and establish systems to enhance competitivenessWe will guild an organizational management and business administration system to further enhance our neutrality in the transmission sector
(3) Bolstering the financial foundation of the Kyuden Group as a whole and enhancing its competitive power‌We will make effective use of external knowledge of the Procure-
ment Reform Promotion Committee, established in February 2014,
to promote material/equipment procurement reforms, create a
greater cost awareness of the need for continuous cost reductions,
and step up cost management.‌From the perspective of reducing fuel consumption, we are striving
to improve thermal efficiency at thermal power stations by replacing
existing equipment with high-efficiency equipment.
(4) Pursue safety and security‌Establishing internal systems in preparation for compound disasters
We have established internal systems so that if a multiple disaster that involves both a natural one such as an earthquake and tsunami and a
nuclear one occurs, a natural disaster response headquarters and a nuclear one will be combined to form a comprehensive center for integrated
action.‌Reinforcing management of nuclear power risks‌We are enhancing communication with local communities about nuclear power  For details, see the Special Feature on pages 25-31.
Establishing a robust business foundation
Strategy
PillarIIIFY2011
level
(before
earthquake)Goal10% average
cost reduction
for FY2013–2015
Result
12% FY2014
cost reduction
Further future
reductions
Major Efforts
-Review of specifications
and construction methods
-Applying competitive ordering to a wider range of
projects, using ingenious ideas for ordering methods
making the most of the principles of competition, etc.
[Goal for Reduction in Material/
Equipment Procurement Costs and Results]
The Kyushu Electric Group’s Medium-Term Management Policy
13/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
Interview with the President
Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
(5) Ensuring thorough CSR management‌Reinforce the CSR management cycle.‌Conduct environmental preservation activities in the aim of being an eco-friendly corporate group.Prioritize such programs as the burning of fields in the Kuju Bogatsuru wetlands in Oita Prefecture.Offer environmental education targeting the next generation.‌Promote compliance management.‌Conduct volunteer activities in collaboration with the local community to resolve local issues.We will participate in such initiatives as Korabora Q-den, a volunteer activity aimed at solving local problems in cooperation with NPOs and
other groups.
A scene from the burning of a field
Project to build terraces at the courtyard of the Aya junior high
school (Miyazaki)
Kuju Bogatsuru wetlands and Mt. Hiiji (Oita)
Environmental protection activities at Niji-no-Matsubara (Saga)
The Kyushu Electric Group’s Medium-Term Management Policy
14/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
Interview with the President
Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
Message from the Chairperson and the President
Chairperson President
Message from the Chairperson and the President
15/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
The Kyushu Electric Group’s Medium-Term Management Policy Interview with the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
To our shareholders and investors,
First, I would like to express my gratitude to all of you for your loyal patronage and support of
Kyushu Electric Power.
In response to the serious accidents at the Fukushima Daiichi Nuclear Power Station, Kyushu
Electric also suspended operations at all its nuclear power Stations. Given the ongoing difficul-
ties since that time in our revenue/expense balance, financial condition and supply and demand
situation, we have done our utmost to enhance management efficiency, introduced measures to
cope with supply–demand circumstances, raised electricity rates and issued preferred shares.
However, the suspension of operations at nuclear power Stations has continued for longer
than we had expected, resulting in ballooning thermal fuel costs. As a result, in fiscal 2014 the
Company posted an ordinary loss of 73円.6 billion and a net loss of 114円.6 billion.
Faced with these results, it is with regret that we decided to forego dividends in fiscal 2014.
We apologize to our shareholders for this situation.
Concerning the resumption of operations at our nuclear power operations, our topmost
management priority, after working throughout the Group to comply with national government
reviews and testing to ensure safety, Unit 1 of the Sendai Nuclear Power Station recommenced
commercial operations in September 2015. We are doing everything in our power to facilitate
an early resumption of operations at Unit 2 of the plant, following pre-operation tests, as well as
at Units 3 and 4 of the Genkai Nuclear Power Station. Furthermore, in response to the difficult
management conditions we currently face, we are introducing a variety of measures as we con-
centrate on maximizing efforts to improve our revenue and expense situation.
At the same time, we are moving into a period of real competition, led by the full-scale liberal-
ization of the retail power sector forecast in line with the 2016 electricity system reforms.
Against this backdrop, we recognize the need to accelerate groupwide reforms in order to
ensure the trust of our shareholders and remain their energy supplier of choice. As part of this
effort, in April 2015 we formulated our "Vision for 2030" and the "Kyushu Electric Power Group
Medium-Term Management Policy" to outline our management directions for the next five years.
Under this new management policy, we will push forward as a group on a number of initia-
tives with a view to ensuring sustainable growth and providing value to our stakeholders.
I would like to request your generous understanding and continuous support for our business.
September 2015
Message from the Chairperson and the President
16/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
The Kyushu Electric Group’s Medium-Term Management Policy Interview with the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
Michiaki Uriu
President
In our aim to become the corporate group that
provides Japan’s best energy services, we strive
to continuously enhance our corporate value.
Interview with the President
Interview with the President
17/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
The Kyushu Electric Group’s Medium-Term Management Policy Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
As the suspension of operations at our nuclear power stations lengthened, in
fiscal 2014 our supply–demand, revenue–expense and financial conditions
remained problematic.
Regarding supply–demand, since the Great East Japan Earthquake in
the winter of 2011, we have continued to ask for our customers’ cooperation
in efforts to save electricity. In fiscal 2014, as well, we continued to call for
efforts to conserve electricity wherever not essential to protect life and health,
as well as industrial and economic activity, seriously inconveniencing our cus-
tomers. Through their cooperation in conserving electricity, purchases from
other electric utilities, market procurement and a host of other supply efforts,
we succeeded in riding out the circumstances.
We responded to the difficult revenue–expense and financial conditions
by stabilizing management through an increase in equity capital. To this
end, in August 2014 we issued 100円 billion in Class A preferred shares to
the Development Bank of Japan through a third-party allotment. To improve
the revenue–expense situation, we temporarily deferred short-term repairs,
introduced efforts to enhance overall management efficiency and sought to
thoroughly reduce costs. Despite these efforts, the ballooning cost of fuel for
thermal power generation in the face of a complete suspension of nuclear
power operations led us to post a net loss for the fourth consecutive fiscal
year, and we forewent dividends for the third straight year. I would like to offer
my heartfelt apologies to our shareholders for this situation.
The only way to resolve the tight supply and demand situation and fix
our financial condition is to restart the nuclear power stations. We applied in
July 2013 for an inspection of Sendai Units 1 and 2 and Genkai Units 3 and
4 for compliance with the new regulatory standards, and have been handling
conferences and hearings with the Nuclear Regulation Authority, as well as
on-site inspections, with the utmost seriousness.
In September 2015, we resumed commercial operations at Sendai Unit 1.
We are pouring all our energies into recommencing operations at Sendai Unit
2 and Genkai Units 3 and 4 to alleviate the tight supply and demand situation
and stabilize our financial conditions.
Could you provide an overall review of fiscal 2014?QWe put forth a groupwide effort amid difficult supply–demand and revenue–expense conditions.
Working one step at a time, we also made steady progress toward the resumption of operations
at our nuclear power stations.AInterview with the President
18/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
The Kyushu Electric Group’s Medium-Term Management Policy Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
Please share with us your feelings about recommencing commercial operations at Unit 1 of the Sendai Nu-
clear Power Plant.QThis is the first time in four years for the plant to be operational. All the people involved are mov-
ing forward earnestly and with a strong sense of urgency to get the station back on a commer-
cially operational footing.AIn August 2015, Sendai Unit 1 began the first plant in Japan since the Great
East Japan Earthquake to comply with the new regulatory standards, resum-
ing commercial operations in September.
The power system moves in parallel with the stations, so it was with a
profound sense of happiness that I witnessed the numerical results of the
power from the unit coming back on line.
It is still too early to relax, however. We were only able to overcome the
tight supply and demand situation by repeatedly imploring our customers to
save electricity, and the situation will only begin to normalize once we have
four units operational: Sendai Units 1 and 2 and Genkai Units 3 and 4.
The Basic Energy Plan set by the Cabinet Office in April 2014 sets the
Nuclear Regulation Authority the task of confirming that nuclear power sta-
tions meet some of the world’s most stringent regulatory standards in order
to recommence operations. Given resource-poor Japan’s low energy self-
sufficiency rate and global environmental conditions, I believe that nuclear
power generation will remain necessary.
We have resolved never to allow an accident such as that which occurred
at the Fukushima Daiichi plant. Accordingly, we are working on an ongoing
basis to improve safety and reliability and complying earnestly and meticu-
lously with national government inspections as we move toward the restart of
operations at other plants where operations have been suspended.
 
Please see the Special Feature (pages 25–31) for details.
Interview with the President
19/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
The Kyushu Electric Group’s Medium-Term Management Policy Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
Fiscal 2015 will be an extremely important year, as it will be the stage of
preparing for the full-scale liberalization of electricity retailing in fiscal 2016.
At this important juncture, we decided it was necessary to define our new
management direction, so we formulated the Kyushu Electric Group Medium-
Term Management Policy.
This policy outlines our objectives for working together as a Group on
business initiatives and achieving sustainable increases in corporate value.
It defines our "Vision for 2030" and our three strategic pillars for realizing
this vision.
Specifically, by 2030 we are aiming to become a corporate group that
provides Japan’s best energy services with the theme that "everyone eventu-
ally asks the Kyuden Group for energy."
Our first strategic pillar is to evolve as a "corporate group that provides
energy services" for Kyushu, including gas as well as electricity. Taking cus-
tomers’ energy needs into account, we will develop in tandem with the region
and society. As one aspect of these activities, we are considering specific
measures for a full-fledged entry into the gas business.
Second, we will develop in growth fields. We will push forward with
electric power development in the Tokyo metropolitan area and step up our
overseas business, centering on Asia. In the renewable energy business,
taking supply stability and environmental impact into consideration, we will
proactively develop our operations in Japan and overseas in the areas of
geothermal and hydro power.
Third, we will enhance the organizational strength required to implement
strategies for establishing a robust business foundation.
With regard to the electric utility operating environment, we understand
that we will not be able to turn back the clock to the days before the March
11 disaster even if our nuclear power plants restart. Reforms to the electric
power system are underway, and we recognize that further changes and
competition are certain to occur.
Rather than fear change and competition, the Kyushu Electric Power
Group views them as positive opportunities. We will set our sights on further
growth and development as we work to remain a reliable company of choice
for our stakeholders.
 
For details, please refer to the Medium-Term Management Policy section
(pages 7–14).
The Group announced its new Medium-Term Management Policy in April 2015. Please describe some of
your long-term management directions under this Medium-Term Management Policy.QWe will aim to become a corporate group that provides Japan’s best energy services and achieve
sustainable increases in corporate value.A[Reference: Current generating power, etc.]
Overseas power generation (equity ownership in power output): 1.5 million kW
Renewable energy: 1.5 million kW
Direction of Future Strategy
Kyushuisthe
basisforall
businesses
Expanding
business
activitiestocoverAsiaandtheworld
Robust
business
foundation
Energy service business in Kyushu
Business development in a growing market
Overseas energy business
(Goal) 5 million kW
Outside Kyushu energy business
(Goal) 2 million kW
Renewable energy business
(Goal) 4 million kW
Electricity, gas, distributed, energy-saving, etc.
Active use of
strengths, input of
management
resources
Organizational abilities for
reform and growth and new
sources of profit
Future
business
Always
pursuit
Favorable growth
cycle
Interview with the President
20/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
The Kyushu Electric Group’s Medium-Term Management Policy Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
The passing of the Electricity Business Act reform bill in June 2015 determined
the legal unbundling of the transmission/distribution sector from April 2020.
An inexpensive and stable supply of electricity is fundamental to the life of
Japan’s citizens and industrial activity. Accordingly, as in the past we will do
everything we can to maximize our cooperation with electricity system reforms
to benefit our customers.
We will respond appropriately to the changes in our operating environ-
ment resulting from future electricity system reforms as we develop our
business and strive to remain the reliable energy supplier of our choice to our
customers, as well as a "strong and supple company."
An Electricity Business Act reform measure has been passed, calling for the separation of the distribution
sector as part of the electricity system reforms. How should this be interpreted?QWe will do everything we can to ensure that this reform is to the benefit of our customers.AOverview of the Electric Power System
Submission of Reform Bills at Each Stage and the Periods of Reform Implementation
The reforms are divided into three stages: (1) the establishment of the Organization for Cross-Regional Coordination of Transmission Operators, (2) full retail competition and
(3) legal unbundling of the transmission/distribution sector. Due consideration is being given and the necessary measures implemented at each stage.
First
Stage
Reform bill passed
November 2013
April 2015
Summary of supply–demand and system plans, broad plans and
disclosure of cross-regional supply–demand and system information
Second
Stage
June 2014
Reform bill passed
April 2016
Full retail
competition
Allowing for the establishment of various rate menus
and selection of power utilities
Interim measures
on rate restrictions
Last-resort service
provision and
other measures
Abolition
of rate
restrictions
(Note)
Third
Stage
June 2015
Reform bill passed
April 2020
Introduction of a
competitive market
environment
Establishment of the
Organization for
Cross-Regional
Coordination of
Transmission Operators
Legal unbun-
dling of the
transmission/
distribution
sector
(Note) The timing for the abolition of rate restrictions is to be determined based on the electricity market, operating environment, competi-
tive conditions and other factors.
Interview with the President
21/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
The Kyushu Electric Group’s Medium-Term Management Policy Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
During fiscal 2014, we undertook constant and steady streamlining efforts,
including making deep cuts in material procurement costs, to alleviate the
difficult financial circumstances stemming from the closure of all our nuclear
power stations. While ensuring safety and legal compliance and preventing
supply stability from being affected, we did everything we could to reduce
short-term costs by temporarily delaying inspections and construction activities.
As a result, in addition to planned cuts of 135円.0 billion we had an-
nounced our intention of making by improving management efficiency, we
also achieved reductions of 179円.0 billion centered on short-term initiatives.
In all, we succeeded in slashing costs by 314円.0 billion.
We also sought to address the problematic revenue–expense and
financial condition by selling off assets where possible. These efforts led to
cumulative sales of 84円.3 billion for fiscal 2013 and fiscal 2014.
In April 2013, we announced a management efficiency enhancement
plan to achieve a "three-year average of 140円 billion in cuts." Our plans for
fiscal 2015 incorporate cost reductions of 153円.0 billion through efficiency
improvements. Although spending will need to increase to conduct the
repairs temporarily delayed from fiscal 2013 and 2014, we expect to achieve
this objective.
With regard to asset sales, we will continue working to sell off as many
assets as possible that are not directly related to the operation of our electric-
ity business, such as company housing sites.
Please describe the results of efforts to improve management efficiency in fiscal 2014 and your forecast for
fiscal 2015.QIn fiscal 2014, in addition to planned cuts of 135円.0 billion through efficiency improvements, we
achieved cuts of 179円.0 billion mainly on a short-term basis, for a total reduction of 314円.0 billion.
We plan to continue our efficiency improvement efforts in fiscal 2015.A(Billions of yen)ItemPlanned Efficiency
Improvements for
Fiscal 2015
Fiscal 2014
streamlining initiative
results [A] + [B]
Cost of streamlining
factored into
electricity rate costs
(2014 only) [A]
Streamlining efforts
(2014 only) [B]
Cost of streamlining
factored into
electricity rate costs
(2013–2015 average)
Maintenance costs -28.0 -98.0 -23.0 -75.0 -32.0
Miscellaneous costs, etc. -22.0 -71.0 -21.0 -50.0 -22.0
Personnel costs -51.0 -37.0 -44.0 7.0 -48.0
Fuel costs, cost of
electricity purchases
-22.0*1 -74.0*2 -25.0 -49.0 -18.0
Depreciation expenses
(capital expenditure)
-30.0 -34.0 -22.0 -12.0 -23.0
Total [Excluding fuel costs
and the cost of purchased
power]
-153.0
[-131.0]
-314.0
[-240.0]
-135.0
[-110.0]
-179.0
[-130.0]
Reduction of
around 14円.0
billion
*1 Reference values incorporate rate costs and assume a nuclear power utilization rate of 66%.
*2 Nuclear power was not operational in fiscal 2014, so the supply–demand balance is a preliminary calculation that differs substantially from rate costs.
(Billions of yen)
Item Sales results (2014)
Sales results*3
(total for 2013 and 2014)A+BSales plan upon receipt of
acceptance to raise the rate
cost (2013–2015) A
Streamlining effect B
Property 10.2 (9.8) 41.9 (36.9) 10.0 31.9
Available-for-sale
securities
0.3 (0.1) 42.4 (30.3) 4.0 38.4
Total 10.5 (9.9) 84.3 (67.2) 14.0 70.3
*3 Figures in parentheses indicate gains on sales.
Status of Operational Streamlining Initiatives
Results of Asset Sales
Interview with the President
22/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
The Kyushu Electric Group’s Medium-Term Management Policy Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
Solar, wind, biomass, hydro, geothermal and other forms of renewable
energy are examples of domestically produced energy. They are also excel-
lent sources of power for countering global warming. Accordingly, we remain
unchanged in our dedication to working together as a group to develop and
introduce renewable energy to the best of our capabilities.
However, since the introduction of the feed-in tariff power purchase and
sale system the environment surrounding renewable energy has changed due
to the rapid proliferation of solar generation. In line with this sharp expansion,
we recognized that ensuring a stable supply of electricity could potentially
become difficult. Accordingly, in September 2015 we held off on responding
to applications to connect renewable energy suppliers to the grid, needing to
consider our connection capacity in the aim of maximizing the introduction of
renewable energy. After considering our connection capacity, we were named
a designated electric utility. In line with the promulgation and enactment of
revised legislation, we are currently responding successively on applications
on which considerations have been completed, and we are responding to grid
connections in accordance with nationwide rules.
Based on the condition of ensuring a stable supply of electricity, in keep-
ing with the intent of the legislative reform concerning the revised operation of
the feed-in tariff power purchase and sale system and taking into account the
characteristics of different renewable energy sources we will work to maxi-
mize the balanced development of renewable energy.
In the renewable energy business, which is a growing global market, we
will leverage the technologies and expertise we have accumulated to date to
proactively develop this business both within and outside Japan, concentrating
on geothermal and hydro power.
The rapid proliferation of renewable energy was a hot topic in fiscal 2014. Could you describe your stance
on the future development and introduction of renewable energy?QAs a Group, we will develop and introduce renewable energy to the best of our capabilities.AStatus of Renewable Energy Applications on the Kyushu Mainland (Excluding Isolated Islands, Including for Kyushu Electric) (As of March 31, 2015)
Kyushu Electric’s (Excluding Isolated Islands, Including Group Companies) Renewable Energy Connection Status (As of March 31, 2015)
(Thousands of kW)
Solar Wind Biomass, etc.
Hydro (excluding from
pumped hydroelectric
storage)
Geothermal Total
Applications under ongoing consideration 4,790 160 90 50 30 5,130
Applications under ongoing agreements 4,910 200 10 60 3 5,180
Related approvals received 3,570 120 40 10 10 3,770
Connected 4,660 460 270 1,830 210 7,440
Total 17,930 950 410 1,950 260 21,500
Notes: Totals may not match exactly because figures have been rounded.
Cold energy is included in biomass.
Connectable volume: Solar 8,170,000 kW, wind 1,000,000 kW
(Thousands of kW)
Solar Wind Biomass, etc.
Hydro (excluding from
pumped hydroelectric
storage)
Geothermal Total
Connected 40 70 40 1,280 210 1,640
Solar Power Connection Volumes on the Kyushu Mainland (Excluding Isolated Islands)
(Thousands of kW)
5,000
4,000
3,000
2,000
1,0000(FY)20142013
2010 201220112009200831.9
330 41031,110
2,71056017404,660
 ‌
As of March 31, 2015, the renewable energy application status for Kyushu
(excluding isolated islands) amounted to 21,500,000 kW (of which solar
was 17,930,000 kW). Of this figure, the already-connected portion totaled
7,440,000 kW (of which solar was 4,660,000 kW).
 ‌
As the connection application volume exceeded the connectable volume
(8,170,000 kW) on December 22, 2014, the Company was named a
designated electric utility* for solar power.
 ‌
As of December 31, 2014, the total output of connected plants and
plants for which connections have been approved had reached the con-
nectable volume.* By being named a designated electric utility by the national government, Kyushu Electric is able
to request suspension of power output without compensation for up to 30 days per year for
applications received after the date on which the total of connected plants and plants for which
connections have been approved exceed the connectable volume.
Interview with the President
23/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
The Kyushu Electric Group’s Medium-Term Management Policy Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
We are working to reinforce corporate governance, which we recognize as an
important management issue. In the past, we have appointed highly indepen-
dent external directors to enhance the management supervisory function and
undertaken efforts to ensure the effectiveness of audits by corporate auditors
by enhancing coordination with the internal auditing body.
We understand the principal thrust of the recently enacted Corporate
Governance Code to hinge on enhancing the speed and effectiveness of
decision-making with the aim of ensuring sustainable growth and medium- to
long-term increases in corporate value, and we are undertaking proactive
initiatives in this regard. In June 2015, we appointed two external directors,
one more than previously.
We have set up an internal team to consider our response to the code,
and their efforts are focused on initiatives targeting all 73 items of the code,
including its general principles, principles and supplementary principles.
We plan to issue a corporate governance report in December 2015
outlining our initiatives in response to the code. However, this is an ongoing
medium- to long-term initiative that we will continue to consider even after
submitting this report.
 
Please see Corporate Governance (pages 33–34) and the Interview with
External Directors (pages 35–36) for details.
The Corporate Governance Code, outlining basic principles on corporate governance, went into effect on
June 1, 2015. What has been your response?QWe are making proactive efforts to reinforce corporate governance to achieve sustainable
growth and medium- to long-term increases in corporate value.APlease outline your stance on dividends.QIn order to resume dividends as soon as possible, we are undertaking thorough management stream-
lining and striving to recommence operations at our nuclear power stations as quickly as possible.AWe make dividend decisions by taking into overall account our medium- to
long-term forecasts of revenues/expenses and financial condition, as well as
the balance among all of our stakeholders.
Given that operations at our nuclear power stations were suspended in
fiscal 2014, thermal generation and other fuel costs ballooned, resulting in a
net loss for the year of 119円.0 billion for Kyushu Electric on a non-consolidat-
ed basis. As a result, we made the decision to forego dividends.
Because we expect severe financial conditions to persist in fiscal 2015,
we expect to pay no interim dividends on common stock or Class A preferred
shares. I offer my deepest apologies to our shareholders for this situation.
We aim to resume dividend payments as soon as possible. To allow this,
we are stepping up thorough management streamlining efforts and doing our
utmost to restart operations at our nuclear power stations as the earliest pos-
sible date.
Interview with the President
24/90
Section 2
Management Message
Kyushu Electric Power Company Annual Report 2015
The Kyushu Electric Group’s Medium-Term Management Policy Message from the Chairperson and the President
Section 1
Kyushu Electric Power Summary
Section 3
Special Feature
Section 4
Management Base
Section 5
Financial Information
Initiatives for Ensuring the Safety and Security of Nuclear Power
Special
Feature
Kyushu Electric recognizes improving the safety of nuclear power as a topmost management priority. Accordingly, we are complying
with the Japanese government’s new regulatory requirements. At the same time, we are working on both the tangible (facilities)
and intangible (operational) fronts, monitoring external opinions and undertaking voluntary and ongoing initiatives to augment safety.
Kyushu Electric applied in July 2013 to confirm that safety measures in place
at the Sendai Nuclear Power Station Units 1 and 2 and the Genkai Nuclear
Power Station Units 3 and 4 are in compliance with the national government’s
new regulatory standards by submitting to the Nuclear Regulation Authority
applications for permission for a change in reactor installation license (basic
design), construction planning permission (detailed design), permission for
change in safety regulations (operational management). Applications for
Sendai were filed on June 8, 2013, and for Genkai on July 12, 2013.
Unit 1 of the Sendai Nuclear Power Station underwent a pre-operation test
on March 30, 2015 to confirm that actual safety measures were in accordance
with construction planning permission. Thereafter, fuel loading took place
on July 7, the reactor started up on August 11, operations recommenced on
August 14, and commercial operations began again on September 10.
Process of Recommencing Operations at Unit 1 of the Sendai Nuclear Power Plant
July 8, 2013
Revised
application
September 10, 2014
September 10,2015Authorization
Application
Commercial
operations
Screening for permission for a
change in reactor installation
license (for both Units 1 and 2)
Revised
application
May 27, 2015
Approval
Screening for permission for change in safety regulations
(for both Units 1 and 2)
Revised
application
March 18, 2015
Approval
Screening for construction planning permission Pre-operation test
Safety inspection*We have obtained the understanding from the heads of local municipal bodies, the governor of Kagoshima Prefecture and the mayor of Satsumasendai, regarding safety enhancement initiatives and
the restarting of the Sendai Nuclear Power Station.
Unit 2 of the Sendai Nuclear Power Station underwent a pre-operation
test in June 2015, two months following the test for Unit 1, enabling us to
continue incorporating our experiences with Unit 1 testing.
We will continue implementing voluntary initiatives to further enhance
safety and reliability, ensuring the full safety of our nuclear power stations.
At the same time, we will respond meticulously and sincerely on govern-
ment reviews toward the early recommencement of operations at Unit 2 of
the Sendai Nuclear Power Station and Units 3 and 4 of the Genkai Nuclear
Power Station.
Restarting Commercial Operations at Unit 1 of the Sendai Nuclear Power Station
25/90
Section 3
Special Feature
Kyushu Electric Power Company Annual Report 2015
Section 4
Management Base
Section 5
Financial Information
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
To further ensure the safety of nuclear power stations against damage
stemming from earthquakes and tsunamis, the new regulatory requirements
specify enhanced design base for anti-seismic and anti-tsunami functional-
ity, as well as power source reliability and cooling facility performance. The
requirements also call for large-scale disaster countermeasures for respond-
ing to situations that exceed design requirements.
Content of the Application for Permission for a Change in Reactor Installation License for Units 1 and 2 of the Sendai Nuclear Power Station
Overview of the Nuclear Regulation Authority’s New Regulatory Requirements
Intentional aircraft collision response*
<New Regulatory Requirements>
Containment of radioactive substances to
prevent spreading
Prevention of damage to containment vessels
Prevention of damage to reactor core
(scenario involving accidents with multiple equipment)
Precautions against the internal flooding (new)
Precautions against natural phenomena
(new; pertaining to volcanic activity, tornadoes and forest fires)
Power source reliability
Fire precautions
Specifications for other facilities
Earthquake and tsunami
resistance specifications
[Prepared from materials announced on July 3, 2013, by the Nuclear Regulation Authority]
Precautions against natural phenomena
*As an interim measure, a five-year grace period is set as an interim measure for facilities in responding to specific large-scale disasters
(restricting the abnormal emission of radioactive materials due to large-scale aircraft collisions or acts of terrorism)
Measures implemented from a voluntary
safety standpoint as accident
management measures
<Previous Regulatory Standards>
Overview of the New Standards
Design base assuming an accident that
does not damage the reactor core
(design base)
(Scenario involving an accident with a
single equipment, etc.)
Fire precautions
Power source reliability
Specifications for other facilities
Earthquake and tsunami
resistance specificationsNew(anti-terror;
severe
accident
measures)
Designbase(neworenhanced)
(1) Earthquakes
Standard seismic motion includes both
(1) 
Seismic movement that could conceivably occur along active fault lines in
the power station’s vicinity (seismic movement plotted out from a defined
epicenter at each site) and
(2) 
Past seismic movement that is difficult to attribute to the epicenter and ac-
tive fault lines (seismic movement not plotted out from a defined epicenter).
1. Strengthened and Newly Introduced Design Bases
Principal content
of new regulatory
requirements
• 
Power stations situated on sites with no active
fault lines
• ‌
Formulation of standard seismic motion, based
on the most recent scientific and technological
knowledge
Principal content
of applications
for permission
for a change in
reactor installa-
tion license
• ‌
Confirmation there are no active fault lines
within the power station grounds
• ‌
Formulation of standard seismic motion
(1) ‌
Evaluation of active fault lines in power sta-
tion vicinity: 540 gal
(2) ‌
Based on results of examination of the Hok-
kaido Rumoi–Nanbu earthquake: 620 galDistribution of Active Fault Lines in the Vicinity of the Sendai
Nuclear Power Plant
Active fault lines
[Legend]
*Faults that have not been active
since the late Pleistocene era
(since approximately
120,000–130,000 years ago)
Ichiki fault area
Ichiki region (M 7.2)
Ichiki fault area
Ichiki region (M 7.2)IchikifaultareaAreainthemiddleoftheKoshikichannel(M7.5)IchikifaultareaAreainthemiddleoftheKoshikichannel(M7.5)
Koshiki section of the
Koshiki fault (M7.5)Koshiki section of the
Koshiki fault (M7.5)Hidden faults*
Sendai Nuclear
Power Plant
26/90
Section 3
Special Feature
Kyushu Electric Power Company Annual Report 2015
Section 4
Management Base
Section 5
Financial Information
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
(2) Tsunamis
Principal content
of new regulato-
ry requirements
• ‌
Definition of a "standard tsunami" based on
the most recent scientific and technological
knowledge
• ‌
Buildings housing equipment crucial to safety
to be located at a height that a tsunami can-
not reach
• ‌
Establishment of protective facilities if
breached by tsunami
Principal content
of application for
permission for a
change in reac-
tor installation
license
• ‌
Definition of a standard tsunami
• 
A tsunami stemming from an interplate
earthquake in the Ryukyu Trench
to a generator at a maximum high-water
market of around 6m* above sea level
• ‌
Principal generator facilities to be situated
approximately 13m above sea level, ensuring
ample protection against run-up waves
• ‌
Erection of a protective wall around the sea-
water pump area
*Taking into consideration changes due to land subsidence from earthquake and full tide mark
(3) Natural Phenomena, Volcanoes, Tornadoes, etc.
Principal content
of new regulatory
requirements
• ‌
Survey volcanic activity in the power station’s
vicinity and evaluate the impact of volcanic
phenomena
• ‌
Design to ensure against the impact of volca-
nic activity during reactor operation and con-
firmation that the potential impact of volcanic
activity is sufficiently small
• ‌
Ensure the soundness of equipment crucial to
safety against tornadoes and flying objects
Principal content
of application for
permission for a
change in reac-
tor installation
license
• ‌
Evaluate that buildings and equipment neces-
sary to safety will not be affected in the event
of falling volcanic ash (depth of 15cm)
• ‌
Evaluations that the potential impact of cata-
strophic eruptions from calderas is sufficiently
small while reactor is operating
(Monitoring for volcanic activity monitoring)
• ‌
Erect a protective net outside equipment
necessary for safety to protect against collision
with flying objects in the event of a tornado
with winds of 100m/s‌(Referencing the fact that the most severe
tornado recorded to date in Japan had winds
of 92m/s)
(4) Fires, Flooding
Principal content
of new regulatory
requirements
• ‌
Strengthen and thoroughly enact fire protec-
tion measures
• ‌
Implement measures to protect equipment
crucial to safety from flooding
Principal content
of application for
permission for a
change in reac-
tor installation
license
• ‌
Erect additional equipment, including automat-
ed fire-fighting equipment and fireproof walls
• ‌
Provide reinforced piping and watertight doors
to prevent water from flowing out in the event
of burst tank or piping
Locations of Calderas in Kyushu
Condensate tank tornado protection measureBarrier wall in seawater pump areaConceptual Image of the Reactor Site
BarrierwallBarrierwallContainment
vessel
Barrier dam
Approximately
15 m above
sea level
Intake channel
Retention dam
SeawaterpumpSeawater
pump Site height
approximately
13 m above
sea level
Retention dam
Seawater protection
from reactor cooling
water when the
tsunami recedes,
as well
Barrier dam
Protection from
tsunami and collision
with floating objects
Barrier wall
Protect seawater pump from tsunami
Legend
Caldera
Sendai Nuclear Power Plant
160km
Kikai caldera
Ata caldera
Aira caldera
Kakuto-Kobayashi
caldera
Aso caldera
Sendai Nuclear Power Plant
160km
Kikai caldera
Ata caldera
Aira caldera
Kakuto-Kobayashi
caldera
Aso caldera
Barrier wall
Barrier dam
Protective net
(made of metal)
27/90
Section 3
Special Feature
Kyushu Electric Power Company Annual Report 2015
Section 4
Management Base
Section 5
Financial Information
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
2. Large-Scale Disaster Countermeasures
(1) Prevention of damage to reactor core
Principal content
of new regulatory
requirements
• ‌
Introduce measures to ensure against damage
to reactor core even if safety measures fail
Principal content
of application for
permission for a
change in reac-
tor installation
license
• ‌
Diversify power supply methods
• ‌
Installation of large-scale air-cooled generator
to provide for the event of damage to external
power supplies and permanent emergency
power supplies
• ‌
Diversify reactor cooling methods
• ‌
In addition to permanent pumps, add mobile
pumps and other equipment
(1) ‌Use portable injection pumps (new) to
douse reactor and steam generator
(2) ‌Douse reactor with permanently powered
injection pumps (new)
(3) ‌Use the containment vessel spray pump
(functional addition) to douse the reactor
(4) ‌Use large-volume pump truck (new) to
supply seawater to component cooling
water system
Seawater
Use portable injection
pumps to douse the
reactor core and
steam generator
Use large-volume
pump truck to provide
seawater
Component cooling
water system
To sea
CondensatetankRefueling
water
storage tank
Containment
spray pump
Containment vessel
Steam
Control rod
Turbine-driven auxiliary
feed water pump
Reactor vessel
Reactor coreFuelPressurizer
Steam
generator
Permanently
motor driven
injection pumps
To reactor core
Provide cooling water to
various auxiliary equipment
Seawater
system
To steam
generator
Inside
Outside
Freshwater
reservoir
Electric motor driven feed
auxiliary water pump
Electric
motor
Intermediate
holding tank
Previous cooling
water flow
New cooling water
flow due to
countermeasures
Douse reactor using
containment vessel spray pump
Douse core with permanently powered injection pumps
Prevention of Damage to Reactor Core
Mobile high-capacity generator
Large-volume pump truck
28/90
Section 3
Special Feature
Kyushu Electric Power Company Annual Report 2015
Section 4
Management Base
Section 5
Financial Information
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
(2) Prevention of damage to containment vessels
Principal content
of new regulatory
requirements
• ‌
Introduce measures to ensure containment
vessel is not damaged, even in the event of
damage to the reactor core
Principal content
of application for
permission for a
change in reac-
tor installation
license
• ‌
Diversification of containment vessel cooling
methods
(1) ‌Containment spray vessel using perma-
nently powered injection pumps (new)
(2) ‌Containment spray vessel using portable
injection pumps (new)
(3) ‌Use large-volume pump truck (new) to
supply seawater to containment vessel
recirculation unit*1
• ‌
Measures to reduce hydrogen concentration
• ‌
To prevent hydrogen explosions, enable re-
duction of hydrogen concentration if hydrogen
escapes from the containment vessel
(4) ‌Static catalyst hydrogen recoupling
device*2
(5) ‌Install electrical hydrogen igniter*3
*1 Device to cool air inside the containment vessel through heat exchange with cooling water
*2 Device using a catalyst (platinum, palladium) to prompt the reaction of hydrogen and oxygen into water
*3 Device using an electrical heater to force combustion of hydrogen into water
(3) Containment of radioactive substances to prevent spreading
Principal content
of new regulatory
requirements
• ‌
Introduce measures to control the spreading
of radioactive substances outside the site
even in the event of damage to the contain-
ment vessel
Principal content
of application for
permission for a
change in reac-
tor installation
license
• ‌
Use water canon to spray damaged areas of
the containment vessel, and erect a silt fence
(in-sea curtain) to prevent spreading into the
ocean
(4) Base equipment to handle severe accidents
Principal content
of new regulatory
requirements
• ‌
Establish emergency response posts as on-
site command centers in the event of severe
accidents
Principal content
of application for
permission for a
change in reac-
tor installation
license
• ‌
Establish alternative emergency operations
facility
• ‌
Establish alternative emergency operations
facility that satisfy new regulatory require-
ments for seismic resistance, communication
equipment, etc.
Condensatetank[Containment of radioactive substances
to prevent spreading]
Freshwater
reservoir
Intermediate
holding tank
Seawater
Containment spray pump
Large-volume pump truck Water canon
Permanently motor driven injection pumps
Containment spray vessel
using permanently motor
driven injection pumps
Containment spray vessel
using portable injection pumps
Use large-volume pump truck to
supply seawater to containment
recirculation unit
Component cooling
water system
Refueling
water
storage tank
Containment vessel
Electrical hydrogen igniter
Static catalyst hydrogen
recoupling device
Vaporizer
Hydrogen, airAir,water
vapor
Hydrogen, air, water vapor
Catalyst
plate
Electrical heater
Containment spray
Containment
recirculation unit
Reactor vessel
Previous cooling
water flow
New cooling water
flow due to
countermeasures
Inside
Outside
Control rod
Steam
generator
To sea
Prevention of damage to containment vessels and containment of radioactive substances to prevent spreading
29/90
Section 3
Special Feature
Kyushu Electric Power Company Annual Report 2015
Section 4
Management Base
Section 5
Financial Information
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
At the Sendai Nuclear Power Plant, we have adopted a night-watch system
to ensure a rapid response in the event of a severe accident, even if it should
occur outside normal working hours, on a holiday or at night, by continuously
maintaining an on-alert squad of 52 people. These 52 people take part in
drills on a daily basis and manage their resources to form a rapid-response
team in the event of a severe accident.
Top management is taking a leadership role in addressing the risks of nuclear
power. While promoting an understanding of these risks both within and
outside the Company, we are working to identify the broad range of risk. We
have established an internal risk communication council comprising all layers
of management to deliberate risk from diverse perspectives and reinforce our
risk management initiatives.
Making use of a council composed of outside experts to perform checks
and offer advice related to our nuclear power business operations, we are
undertaking efforts to enhance safety with respect to nuclear power’s risks
and conducting monitoring from a third-party perspective.
We have also established a caldera volcano response committee, chaired
by the president. This committee, which receives third-party advice, oversees
the management of risk with respect to caldera volcanos.
Securing Necessary Personnel for Large-Scale Disaster Countermeasures and Conducting Various Drills
Reinforcing the Management of Nuclear Power Risks
Severe Accident Drills at Nuclear Power Stations
Organizations Reinforcing Nuclear Power Risk Management
Kyushu Electric
Board of Directors,
Corporate Management Committee
Power Generation Division,
related divisions
JANSI, Nuclear Risk Research Center,
WANO, manufacturers, etc.
Related government bodies,
local community, etc.
Council to perform checks and
offer advice related to our
nuclear power
business operations Meeting of the council to perform checks and offer
advice related to our nuclear power business operations
Nuclear power safety
enhancement
subcommittee
Internal risk communication council
(reinforce deliberation of nuclear power risks)
くろまる Identify and evaluate important risks くろまる Deliberate risk response policies, etc.
Reporting
Reporting
Deliberation results
Monitoring
New knowledge from inside and
outside the Company Communication of opinions, etc.
Liaison with JANSI, proactive participation in
initiatives by the entire nuclear power industry( )Japan Nuclear Safety Institute (JANSI)
To ensure ongoing efforts to address measures for enhancing
the safety of nuclear power stations, this organization leads
and supports operators and makes its judgments from an
independent perspective unaffected by nuclear power
facilities operators.
World Association of Nuclear Operators (WANO)
Fostering communication and friendly competition among
nuclear power facilities operators, this organization strives
to enhance the safety and reliability of nuclear power
station operations.
Transporting power cables Setting up a portable diesel
injection pump
Erecting a water canon Drill assuming a forest fire near
the site
Power supply drills (transporting power cables, etc.), cooling
water provision drills (portable diesel, etc.), radioactive substance
dispersion control drills, firefighting drills with dedicated fire-
fighting groups
30/90
Section 3
Special Feature
Kyushu Electric Power Company Annual Report 2015
Section 4
Management Base
Section 5
Financial Information
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
We listen carefully to the opinions of local community members and encour-
age "risk communication," in which we share information about the risks
related to nuclear power.
We reflect uncertainties and questions from the local community in our
risk management and work to enhance community members’ safety and
peace of mind, cultivating a trust-based relationship.
Enhancing Communications with Local Communities about Nuclear Power
(1) ‌
Recognizing the importance of communications, given that risks exist, we
communicate thoroughly with employees and maintain ongoing commu-
nications with the members of the communities that house our nuclear
power sites, thereby strengthening local organizations.
(2) ‌
Throughout our communication activities, we listen carefully to the con-
cerns and questions raised by members of the local community.
(3) ‌
By sharing input from the local community throughout the Company,
including with management, we endeavor to foster an awareness that
our operations are safe and provide peace of mind.
In the Past: Efforts to Understand From Here on out: Risk Communication
Members of the
local community
Kyushu Electric
Explanation of safety
measures
Questions regarding the
explanations
Members of the
local community
Safety,
peace ofmindUncertainty,
questions
Kyushu Electric
Efforts to heighten the safety and
peace of mind of members of the
local community
Cultivate a
trust-based
relationship
Shared throughout
the Company,
including among
management
Listening closely to
uncertainties and questions
In July 2015, we established the Genkai Office as an ongoing organization to serve as a forum for communication activities with members of the local community.
31/90
Section 3
Special Feature
Kyushu Electric Power Company Annual Report 2015
Section 4
Management Base
Section 5
Financial Information
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
Contents
33 Corporate Governance
35 Interviews with External Directors
37 CSR Management
38 Compliance Management Promotion
39 Promotion of Environmental Management
40 Board of Directors and Auditors
Management Base
Section 4
Management Base
Kyushu Electric Power Company Annual Report 2015
Section 4
Management Base
32/90
Section 1
Kyushu Electric Power Summary
Section 2
Management Message
Section 3
Special Feature
Section 5
Financial Information
Corporate Governance
Basic Stance on Corporate Governance
Based on a corporate governance structure centered on the Board of
Directors and the Board of Corporate Auditors, we work to strengthen
management oversight functions by appointing highly independent
external directors, while heightening the effectiveness of audits by
fostering close cooperation between the corporate auditors and internal
auditing bodies. Furthermore, we have clearly defined the oversight
and executive roles of directors and executive officers, while striving
to rigorously enforce compliance management. At the same time, we
have developed a basic policy on the formation of a system to ensure
proper business operations (basic internal control policy), as we strive
to continuously improve the internal control system.
In addition, after giving due consideration to the tenor of the Cor-
porate Governance Code that went into force on June 1, 2015, we will
further reinforce our corporate governance in the aim of ensuring sus-
tainable growth and medium- to long-term increases in corporate value.
Board of Directors
In principle, the Board of Directors meets monthly or as otherwise
necessary to decide on important corporate management matters and
monitor implementation. In the fiscal year ended March 31, 2015, the
Board of Directors met 18 times. In order to heighten the effectiveness
of its oversight functions, the Board of Directors receives advice from
standpoints independent of the Company, such as by appointing exter-
nal directors.
Moreover, the Corporate Management Committee, which is made
up of the president, executive vice president, the senior managing
executive officers, the managing executive officers and other members,
considers matters requiring further discussion before the Board of
Directors makes decisions and decides on important executive issues.
In the fiscal year ended March 31, 2015, the committee met 41 times.
Furthermore, each division and branch office has an executive of-
ficer to accelerate decision-making and streamline operations.
Board of Corporate Auditors
In principle, the Board of Corporate Auditors meets monthly or as
otherwise necessary to debate on and make resolutions about reports
on important matters relating to audits stipulated in laws and ordinanc-
es and the articles of incorporation. In the fiscal year ended March 31,
2015, the Board of Corporate Auditors met 15 times. Corporate auditors
attend important gatherings, including those of the Board of Directors.
They conduct hearings for all divisions, consolidated subsidiaries, and
other business units, and otherwise conduct overall audits of the work
of directors and executive officers.
Furthermore, the Corporate Audit Office, which has 12 members,
assists the corporate auditors as a specialist organizational body.
Appoint or dismiss Appoint or dismiss Appoint or dismiss
Delegate
President
General Meeting of Shareholders
Corporate Management Committee
Each Division,
Department, Branch
Office and Group
Companies, etc.
Implementation
monitoring
Assess appropriateness
of accounts auditing
Internal
auditing
Coordinate
and instruct
Submit and report
on important matters Instruct Report
Report
Report
Accounting
Auditors
Audit
Corporate Audit Office
Board of
Corporate
Auditors
Determine
that accounts
audits are
appropriate
Elect, dismiss and supervise
Compliance
Committee
Internal auditing body
Management Auditing
Department
Nuclear and Technical
Auditing Department
Board of Directors
Liaise
Corporate Governance Structure
Corporate Governance
33/90
Section 4
Management Base
Kyushu Electric Power Company Annual Report 2015
CSR Management Compliance Management Promotion Promotion of Environmental Management Board of Directors and Auditors
Interviews with External Directors
Section 5
Financial Information
Section 3
Special Feature
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
External Directors and External Corporate Auditors
When appointing external directors or external corporate auditors, the
Company refers to the Tokyo Stock Exchange’s evaluation standards
regarding the independence of directors and corporate auditors. More-
over, the Company has designated its two external director and three
external corporate auditors as an independent director and independent
corporate auditors, respectively, judging that these individuals will offer
objective and neutral opinions about the Company’s business based on
their experience and insight.
The external director attends meetings of the Board of Directors
and expresses an opinion as necessary on agenda items based on the
individual’s experience and insight. This external director also expresses
opinions regarding management issues at meetings other than the
Board of Directors such as the Corporate Management Committee.
The external corporate auditors attend meetings of the Board of
Directors, where they offer opinions as necessary on agenda items
based on their experience and insight. They also attend meetings of the
Board of Corporate Auditors to help formulate audit plans, as well as
receive reports from the accounting auditors and the internal auditing
body regarding audit results.
Internal Auditing
We have set up an internal auditing body (Management Auditing
Department, 22 staff members) that functions objectively, ensuring that
operations are proper and helping to improve management efficiency.
The division audits compliance and business operations at all divisions
and branch offices.
Moreover, staff from a separate specialist internal auditing body
(Nuclear and Technical Auditing Department, 11 staff members) audit
the quality assurance systems in place to monitor safety initiatives at
nuclear and thermal power stations and other important facilities, and
the status of operations based on these.
Accounting Auditors
The certified public accountants that audited the Company’s accounts
belong to Deloitte Touche Tohmatsu LLC.
The internal auditing body, corporate auditors and accounting audi-
tors work to improve and enhance audit functions through close coop-
eration on formulating audit plans and reporting audit results.
Financial Reporting
The Company properly operates internal controls governing financial
reporting and establishes systems to make corrections as necessary. At
the same time, the Company’s Financial Reporting Disclosure Com-
mittee, which is chaired by the president and consists of management
executives, works to ensure the appropriateness of financial reporting.
Information Management
The Company properly stores and manages documents stipulated by
laws and regulations such as minutes of Board of Directors meetings,
as well as other documents concerning important decision-making
matters. To this end, the Company assigns responsibility for document
management to appropriate departments based on internal rules. At the
same time, the Company works to ensure the security of information
concerning the execution of duties as necessary, based on basic poli-
cies and rules concerning information security.
Risk Management
Based on our risk management rules, we identify, categorize and assess
risks, clarifying material Company-wide and business threats. Each divi-
sion and business office produces contingency plans to manage clear
general and specific risks.
Furthermore, we have established rules for a response structure
and procedures to quickly and properly address situations where the
materialization of a risk may lead to an emergency, loss of public trust,
or other situations that could have a significant impact on Company
operations and society. This includes enhancing and strengthening our
crisis management system to minimize the impact on the Company and
society. We also regularly conduct drills.
With regard to risks that relate to multiple departments and risks
for which concerns of materializing are high, we share information
among related departments, clarify response structures and address
these risks appropriately.
For nuclear power in particular, we take external knowledge and
opinions into consideration as we work to identify a broad range of risks
and address them thoroughly and on an ongoing basis.
In addition, we hold a Risk and Crisis Management Countermea-
sures Meeting that prepares all possible responses to a crisis, compris-
ing both prevention countermeasures to be implemented in advance
and also responses for when a crisis actually occurs. If a crisis does
occur, the meeting also mobilizes company-wide functions and capabili-
ties to implement an appropriate response.
Corporate Governance
34/90
Section 4
Management Base
Kyushu Electric Power Company Annual Report 2015
CSR Management
Interviews with External Directors Compliance Management Promotion Promotion of Environmental Management Board of Directors and Auditors
Section 5
Financial Information
Section 3
Special Feature
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
Interviews with External Directors
Akiyoshi
Watanabe
External Director
My Impressions of Kyushu Electric
I have served as external director for six years. My impressions are that
Kyushu Electric is deeply devoted to its mission of providing stable and
high-quality electricity to its customers. As a leading company in the Kyushu
region, Kyushu Electric also contributes proactively to economic and outreach
organizations, invests its money and the time of its employees in volunteer
activities, and is a major contributor to the local community.
At the same time, because the Company is managed from a long-term
perspective under the so-called fully distributed cost method, whereby
selling prices (electricity rates) are determined so as to generate a certain
amount of profit over costs, it seems to me that the awareness of manage-
ment efficiency, productivity enhancement and cost improvement initiatives
are less pervasive than they would be in a private-sector company. Also, the
Company is relatively impervious to economic, social and other changes in
the external environment.
The Role I Wish to Play
Since the Great East Japan Earthquake occurred on March 11, 2011, Kyushu
Electric’s operating environment has changed dramatically. Due the suspen-
sion of operations at nuclear power stations, the supply and demand situa-
tion has been problematic, and the Company has been in crisis, generating
consecutive losses for the past four years. In these few years, the Company’s
employees all have clinched their teeth and undergone structural reforms to
overcome the crisis. During this time, I have seen the Company transform
itself into a stronger entity with a will to survive into the future, even formu-
lating the Kyushu Electric Power Group Medium-Term Management Policy,
which states the goal of "aiming to become a corporate group that provides
Japan’s best energy services." As an external director, I aim to make use of
my experience at an automaker to realize this policy. In addition to the Board
of Directors, I participate in meetings of the Corporate Management Commit-
tee and management workshops, where I aim to be proactive and forthright in
expressing my opinions. With competition growing more heated, the question
will arise of how to put in place measures that truly adopt the customer’s
perspective. I hope to offer diverse advice from this important viewpoint, and
intend to do my best to help the Company survive and continue to grow.
The Corporate Governance Code went into effect for listed companies in June 2015. After taking into due consideration the gist of this code, the Company is work-
ing to further enhance its corporate governance in the aim of ensuring sustainable growth and enhancing corporate value over the medium to long term.
As one such measure, in June 2015 we increased our number of external directors from one to two to strengthen the management supervisory function.
In the following interviews with Akiyoshi Watanabe and Ritsuko Kikukawa, we ask the two external directors about their impressions of Kyushu Electric and the
roles they themselves wish to play.
Interviews with External Directors
35/90
Section 4
Management Base
Kyushu Electric Power Company Annual Report 2015
Corporate Governance CSR Management Compliance Management Promotion Promotion of Environmental Management Board of Directors and Auditors
Section 5
Financial Information
Section 3
Special Feature
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
Ritsuko
Kikukawa
External Director
My Impressions of Kyushu Electric
As soon as I was appointed external director, I toured the Genkai Nuclear
Power Station and the Matsuura Power Station, which struck me as be-
ing clean and refreshing places. With the Japanese electric power industry
getting ready to recommence operations of its nuclear power stations and
next year’s full-scale liberalization of the retail power sector, I think we are
the cusp of some major changes. In this environment, I have the sense that
morale is high across the Company, from young employees all the way to the
general managers of power stations. At a management workshop the other
day, we were exchanging opinions about management strategy going for-
ward. I was struck by shared recognition among everyone from site workers
to top management that the Company is in a state of reform.
The Role I Wish to Play
After working in government positions with Fukuoka Prefecture and then
later at the national level, I was involved in university management at Kyushu
University and the Open University of Japan. During that period, I gave birth
and raised children while being employed full time. I have to thank the woman
who was working as an engineer at Kyushu Electric for letting me read an in-
house document called "A career plan for female employees in electric power
distribution." I thought the report did a good job of summarizing the situation
of balancing work and home life and seeing from a woman’s viewpoint how to
improve working efficiency, without exaggerations or omissions. It recognized
the fundamental capabilities of female employees. Female employees are still
in a minority, and I believe that cultivating human resource diversity while tak-
ing life events into consideration contributes both to an employee’s motivation
and a company’s performance. As an external director at Kyushu Electric, I
also attend Corporate Management Committee meetings. From the perspec-
tive of a woman and a consumer, I intend to be frank in opinion exchanges,
and I hope to help the Company realize its mission, to "enlighten our future."
Interviews with External Directors
36/90
Section 4
Management Base
Kyushu Electric Power Company Annual Report 2015
Corporate Governance CSR Management Compliance Management Promotion Promotion of Environmental Management Board of Directors and Auditors
Section 5
Financial Information
Section 3
Special Feature
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
CSR Management
CSR Promotion Committee
Our CSR promotion efforts include bolstering our CSR initiatives through the
appointment of a director to oversee our CSR management structure and
the establishment of the CSR Promotion Committee, which is chaired by the
president and formulates our CSR Action Plan.
Group CSR Promotion Subcommittee
We established this body to foster groupwide CSR efforts and implement
plan-do-check-act (PDCA) initiatives for our CSR action plans.
We are building a CSR management cycle that reflects feedback from all of our stakeholders, including customers, shareholders and investors, in our management
and operations.
Group
Management
Committee
Group Sales Promotion Subcommittee
Group sales promotion activities
Group General Affairs & Planning Subcommittee
Matters related to Group management
Group CSR Promotion Subcommittee
Compliance matters
Group Personnel Subcommittee
Group shared training
Board of
Directors
President
Environment
Committee
Group Overseas Business Promotion Subcommittee
Examination of overseas business projects
Group Technological Development Subcommittee
Technological development activities
Group Environmental Management Subcommittee
Planning of Group environmental activities
Compliance
Committee
Corporate
Management
Commitee
Kyushu Electric
Power Group
Presidents
Committee
CSR Promotion
Committee
CSR Promotion Framework
[Roles]
 Establish a groupwide CSR management cycle
 Ensure penetration of compliance measures at Group companies
[Structure] Sub-committee chairman: General Manager of District Symbiosis
Division (in charge of General Affairs), Kyushu Electric Power
Vice Subcommittee Chairman: General Manager of District Symbiosis Division
(in charge of Legal Affairs), Kyushu Electric Power
Constituent companies: 52
[Convened] Twice annually in principle
Overview of the Group CSR Promotion Subcommittee (as of June 2015)
[Role] Deliberation of direction and planning of CSR efforts
[Structure] Committee Chairman: President
Vice Chairman: Executive Vice President in charge of CSR or Executive Officer
Committee members: 
Primarily Executive Vice President, Directors,
Senior Managing Executive Officer,
Managing Executive Officers (appointed by the chairman)
In attendance: Senior Corporate Auditor
[Convened] Twice annually in principle
Overview of the CSR Promotion Committee (as of June 2015)
CSR Management
37/90
Section 4
Management Base
Kyushu Electric Power Company Annual Report 2015
Corporate Governance Interviews with External Directors Compliance Management Promotion Promotion of Environmental Management Board of Directors and Auditors
Section 5
Financial Information
Section 3
Special Feature
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
Compliance Management Promotion
The Compliance Management Promotion Framework
Kyushu Electric Power has established a Compliance Committee chaired by
the president. Under the Compliance Committee, there are implementation
bodies led by compliance officers. The Compliance Committee formulates
Compliance Committee
Kyushu Electric Power established a Compliance Committee under the supervi-
sion of the Board of Directors. The committee regularly offers advice and moni-
toring of compliance, and in the event of the occurrence of improprieties of
major social impact seeks the opinions of experts from outside the Company.
Compliance Consulting Desks
Kyushu Electric Power established Compliance Consulting Desks for the
prevention and early detection of legal infractions and breaches of corporate
ethics. We have additionally improved our consultation structure by maintain-
ing a consulting desk at a law firm outside the Company.
We are strengthening our compliance promotion structure and seeking to enhance employee consciousness so that everyone in the Group is of one mind
concerning compliance.
 Issues concerning compliance promotion and future efforts
 Operational status of the Compliance Consulting Desks
 ‌
Results of consciousness survey based on questionnaire of Kyushu
Electric Power Group employees
and executes policies, and has established structures including internal and
external consultation desks, and promotes compliance management.
We also engage in unified Group compliance promotion efforts centered
on the Group CSR Compliance Subcommittee.
Board of Directors
(Kyushu Electric Power)
Report
Report
Report
Liaison
Delegate
Suggestions
and monitoring
Report
Formulation and execution
of action plans
Formulation and execution of
action plans
Consultation
Consultation
Compliance Subcommittee Group CSR Subcommittee
Group companies
Compliance Committee
Compliance officers
(General Manager of Head Office departments, branch offices and centers)
Compliance officers
Compliance branch area officer*
*Responsible for education and training in the compliance branch
area under the head of the branch office
Implementation bodies
(Head Office departments, branch offices and centers)
President
(Person with ultimate responsibility for compliance management)
Compliance
consulting desks
(internal and external)
Directors
Employees
Business
partners
Compliance officers
(Senior executive rank)
Compliance
education officers
Contact
President (Compliance Committee, etc.)
Consultation
Directors
Employees
Business
partners
Compliance
consulting desks
Liaison
Overview of Compliance Management Structure
[Composition] Chairperson: President
Members: Directors, head of labor union
committee and external experts
Corporate auditor
Major Deliberations and Reporting in Fiscal 2014
Compliance Management Promotion
38/90
Section 4
Management Base
Kyushu Electric Power Company Annual Report 2015
Corporate Governance CSR Management
Interviews with External Directors Promotion of Environmental Management Board of Directors and Auditors
Section 5
Financial Information
Section 3
Special Feature
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
Promotion of Environmental Management
Kyushu Electric Power Group Environmental Charter
We have established the Kyushu Electric Power Group Environmental Charter
to clearly establish the Group’s unified approach to environmental manage-
ment.
Kyushu Electric Power Group Environmental Charter
Aiming for Environmentally Friendly Business
The Kyushu Electric Power Group seeks to create a sustainable society,
and is engaging in efforts to preserve the global environment and exist in
harmony with local communities.
1. ‌
We will strive to take appropriate measures concerning local
environmental issues and use resources effectively as we conduct
business that looks toward the future.
2. ‌
We will exist in harmony with society and conduct environmental efforts
aimed at maintaining a healthy environment in our communities.
3. ‌
We will seek to maintain a sound consciousness concerning
environmental conservation, with the aim of maintaining the trust of our
customers in our Group.
4. ‌
We will actively disclose environmental information, and promote
communications with the public.
Established in April 2008
Promotion Structure
We are building a promotion structure that is both directly connected to management and evaluated by outside experts.
The Kyushu Electric Power Group Environmental Action Plan
The Kyushu Electric Power Group Environmental Action Plan sets a course
for environmental action based on five core initiatives involving efforts to
solve global environmental issues, efforts to create a recycling society, global
conservation efforts, harmony with society, and promoting environmental
management. It presents a concrete plan for environmental action and sets
environmental targets.
The Kyushu Electric Power Group is unified in its efforts to promote environmental management that encompasses both business and environmental efforts to
contribute to the building of a sustainable society.
Environmental Action Plan
Efforts to solve
global
environmental
issues1Efforts to create
a recycling
society2Global
conservation
efforts3Harmony
with society4Promoting
environmental
management5Compatibility of
business and
the environment
Contributing to
the creation of
a sustainable
society
Environmental Committee
CSR Promotion Committee
Group
Environmental
Management
Promotion
Subcommittee
President
Kyushu
Electric
Power
CouncilforEnvironmental
AssessmentHeadOffice
Branch
Office
Center
Operations
Facility
Construction
Facility
Environmental Management Promotion Structure (As of March 2014)
OpinionRoleComposition
Report on
results
of initiatives
Comprehensive deliberation of the
company’s environmental action strategy
Policy and
planning
Environmental CommitteeRoleComposition
Subcommittee chairman:
General Manager of District
Symbiosis Division
(in charge of Environment Affairs),
Kyushu Electric Power
No. of constituent companies: 53
Group Environmental Management
Promotion SubcommitteeRoleComposition
External evaluation of the Kyushu Electric
Power Group’s environmental management
Outside experts from each Prefecture and
every sector in Kyushu
Kyushu Electric Power Council for Environmental Assessment
Collaboration
Proposals and reports
Chairman: Executive Vice President in
charge of CSR or Executive
Officer
Vice Chairman: General Manager of District
Symbiosis Division
Members: General Managers, Deputy
General Managers of related
Divisions appointed by the
Chairman
Deliberation and decisions
concerning actual efforts to
promote environmental
management at Group companies
Promotion of Environmental Management
39/90
Section 4
Management Base
Kyushu Electric Power Company Annual Report 2015
Corporate Governance CSR Management
Interviews with External Directors Compliance Management Promotion Board of Directors and Auditors
Section 5
Financial Information
Section 3
Special Feature
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
Board of Directors and Auditors (As of July 1, 2015)13513 11 9 7 8 10
12 14
2 4 6
1 Masayoshi Nuki 2 Michiaki Uriu 3 Toru Yoshizako 4 Naofumi Satou 5 Tomoyuki Aramaki 6 Kazuhiro Izaki
7 Haruyoshi Yamamoto 8 Hideomi Yakushinji 9 Yuuzou Sasaki 10 Akira Nakamura
11 Yoshiro Watanabe 12 Narumi Nagao 13 Akiyoshi Watanabe 14 Ritsuko Kikukawa
Board of Directors and Auditors
40/90
Section 4
Management Base
Kyushu Electric Power Company Annual Report 2015
Corporate Governance CSR Management
Interviews with External Directors Compliance Management Promotion Promotion of Environmental Management
Section 5
Financial Information
Section 3
Special Feature
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
Masayoshi Nuki
Chairperson
1968 Joined Kyushu Electric
2012 Chairperson (current position)
Michiaki Uriu
President
1975 Joined Kyushu Electric
2012 President (current position)
Toru Yoshizako
Executive Vice President
1975 Joined Kyushu Electric
2013 Executive Vice President (current position)
Akiyoshi Watanabe
External Director
1966 Joined Toyota Motor Co., Ltd. (now Toyota Motor Corporation)
1996 Director
1998 Director (part-time), Toyota Motor Kyushu, Inc.
2001 Managing Director, Toyota Motor Corporation
2002 Retired from Toyota Motor Corporation
2002 President, Toyota Motor Kyushu, Inc.
2007 Vice-Chairman, Kyushu Economic Federation
2008 Chairman, Toyota Motor Kyushu, Inc.
2009 Director, Kyushu Electric (current position)
2011 Advisor, Toyota Motor Kyushu, Inc.
2011 Director, Kyudenko Corporation (current position)
2015 Retired as Vice-Chairman of Kyushu Economic Federation
2015 Retired from Toyota Motor Kyushu, Inc.
Ritsuko Kikukawa
External Director
1974 Joined Fukuoka Prefectural Government
2005 Director, Fukuoka Prefectural General Social Education Center
2007 Director, Fukuoka Prefectural Library
2008 Retired from Fukuoka Prefectural Government
2008 Senior Officer, National Institution for Youth Education
2011 Retired from the National Institution for Youth Education
2012 Executive Vice President, Kyushu University
2014 Retired from Kyushu University
2014 Director of Fukuoka Study Center, Open University of Japan (current position)
2015 Director, Kyushu Electric (current position)
Naofumi Satou
Executive Vice President
1976 Joined Kyushu Electric
2014 Executive Vice President (current position)
Tomoyuki Aramaki
Executive Vice President
Secretary Office, CSR, Crisis Management
1975 Joined Kyushu Electric
2015 Executive Vice President (current position)
Kazuhiro Izaki
Executive Vice President
General Manager of Power Generation Division
1978 Joined Kyushu Electric
2015 Executive Vice President
Haruyoshi Yamamoto
Director
1972 Joined Kyushu Electric
2015 Director (current position)
Hideomi Yakushinji
Director, Senior Managing Executive Officer
General Manager of District Symbiosis Division
1976 Joined Kyushu Electric
2013 Director, Senior Managing Executive Officer
Yuuzou Sasaki
Director, Senior Managing Executive Officer
General Manager of Engineering Division
1978 Joined Kyushu Electric
2014 Director, Senior Managing Executive Officer
Akira Nakamura
Director, Senior Managing Executive Officer
Deputy General Manager of Power
Generation Division
1977 Joined Kyushu Electric
2015 Director, Senior Managing Executive Officer
Yoshiro Watanabe
Director, Senior Managing Executive Officer
General Manager of Marketing Division
1977 Joined Kyushu Electric
2015 Director, Senior Managing Executive Officer
Narumi Nagao
Director, Senior Managing Executive Officer
General Manager of Corporate Planning Division
1977 Joined Kyushu Electric
2015 Director, Senior Managing Executive Officer
Directors
External Directors
Board of Directors and Auditors
41/90
Section 4
Management Base
Kyushu Electric Power Company Annual Report 2015
Corporate Governance CSR Management
Interviews with External Directors Compliance Management Promotion Promotion of Environmental Management
Section 5
Financial Information
Section 3
Special Feature
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
5 3 1 2 4 6
1 Tsuyoshi Ono 2 Toshiaki Hirano 3 Nobuya Osa 4 Yoshio Utsumi 5 Fumiko Furusho 6 Tatsuo Otagaki
Board of Directors and Auditors
42/90
Section 4
Management Base
Kyushu Electric Power Company Annual Report 2015
Corporate Governance CSR Management
Interviews with External Directors Compliance Management Promotion Promotion of Environmental Management
Section 5
Financial Information
Section 3
Special Feature
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
Tsuyoshi Ono
Senior Corporate Auditor
1976 Joined Kyushu Electric
2015 Senior Corporate Auditor (current position)
Toshiaki Hirano
Senior Corporate Auditor
2005 Joined Kyushu Electric
2014 Corporate Auditor (current position)
Nobuya Osa
Senior Corporate Auditor
1977 Joined Kyushu Electric
2015 Corporate Auditor (current position)
Yoshio Utsumi
External Corporate Auditor
1966 
Joined the Ministry of Posts and Telecommunications (now the Ministry of International Affairs and
Communications)
1996 Director of the Postal Office
1997 Retired as Director of the Postal Office
1999 Retired from the Ministry of Posts and Telecommunications
1999 Secretary General, International Telecommunication Union
2006 Retired from the International Telecommunication Union
2007 Senior Advisor, Toyota Infotechnology Center Co., Ltd.
2008 President, Japan Telecommunications Engineering and Consulting Service (current position)
2012 Corporate Auditor, Kyushu Electric (current position)
2013 Retired as Senior Advisor, Toyota Infotechnology Center Co., Ltd.
Tatsuo Otagaki
External Corporate Auditor
1973 Joined Mitsukoshi, Ltd.
2007 
Managing Executive Officer, Deputy General Manager, Department Store Business Headquarters, General Manager,
Product Headquarters
2007 
Director, Managing Executive Officer, Deputy General Manager, Department Store Business Headquarters, General
Manager, Product Headquarters
2008 
Director, Senior Managing Executive Officer, Deputy General Manager, Department Store Business Headquarters
2009 
Director, Senior Managing Executive Officer, General Manager, Department Store Business Headquarters
2010 President and Representative Director, Fukuoka Mitsukoshi Ltd.
2010 Advisor, Iwataya Co., Ltd.
2010 President and Executive Officer
2010 President, Representative Director, Executive Officer, Iwataya Mitsukoshi Ltd.
2011 Senior Managing Executive Officer, Isetan Mitsukoshi Holdings Ltd.
2011 Director, Senior Managing Executive Officer
2012 
President, Representative Director, Executive Officer Division Manager, Sales Division, Iwataya Mitsukoshi Ltd.
2012 Senior Executive Officer, Isetan Mitsukoshi Holdings Ltd.
2014 Chairman, Iwataya Mitsukoshi Ltd.
2015 Resigned as Senior Executive Officer, Isetan Mitsukoshi Holdings Ltd.
2015 Resigned as Chairman, Iwataya Mitsukoshi Ltd.
2015 Corporate Auditor, Kyushu Electric (current position)
Fumiko Furusho
External Corporate Auditor
1982 Joined Furusho Tochi, Ltd.
1982 Director
1998 President, Special Olympics Japan (now Special Olympics Japan Foundation)
2000 Bureau Chief
2004 Retired from position as Bureau Chief
2006 Member, Kumamoto Prefectural Board of Education (current position)
2008 Retired from Special Olympics Japan (now Special Olympics Japan Foundation)
2009 Committee Chairman, Kumamoto Prefectural Board of Education
2011 President, Furusho Tochi, Ltd. (current position)
2012 Retired as Committee Chairman, Kumamoto Prefectural Board of Education
2013 Corporate Auditor, Kyushu Electric (current position)
Senior Corporate Auditor
External Corporate Auditors
Board of Directors and Auditors
43/90
Section 4
Management Base
Kyushu Electric Power Company Annual Report 2015
Corporate Governance CSR Management
Interviews with External Directors Compliance Management Promotion Promotion of Environmental Management
Section 5
Financial Information
Section 3
Special Feature
Section 2
Management Message
Section 1
Kyushu Electric Power Summary
Contents45 Consolidated Eleven-year Financial Summary, and Summary of the
Year Ended March 31, 2015
47 Management Discussion and Analysis
49 Business Risk Factors
51 Consolidated Balance Sheet
53 Consolidated Statement of Operations
54 Consolidated Statement of Comprehensive Income
55 Consolidated Statement of Changes in Equity
56 Consolidated Statement of Cash Flows
57 Notes to Consolidated Financial Statements
57 1. Basis of Presenting Consolidated Financial Statements
2. Summary of Significant Accounting Policies
62 3. Property
4. Investment Securities
63 5. Pledged Assets
6. Long-Term Debt
64 7. Severance Payments and Pension Plans
67 8. Reserve for Reprocessing of Irradiated Nuclear Fuel
68 9. Asset Retirement Obligations
10. Short-Term Borrowings
11. Income Taxes
69 12. Equity
71 13. Research and Development Costs
14. Related Party Disclosure
15. Financial Instruments and Related Disclosures
75 16. Derivatives
76 17. Commitments and Contingencies
18. Comprehensive Income
77 19. Segment Information
78 20. Business combination
81 Independent Auditor's Report
82 Nonconsolidated Five-year Financial Summary
83 Nonconsolidated Balance Sheet
85 Nonconsolidated Statement of Operations
Financial Information
Kyushu Electric Power Company Annual Report 2015
44/90
Section 5
Financial Information
Section 1
Kyushu Electric Power Summary
Section 2
Management Message
Section 3
Special Feature
Section 4
Management Base
Consolidated Eleven-year Financial Summary
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Years Ended March 31
Millions of Yen
For the Year: 2005 2006 2007 2008 2009 2010
Operating revenues����������������������������������� 1,408,728円 1,401,751円 1,408,327円 1,482,351円 1,524,193円 1,444,941円
Electric����������������������������������������������������� 1,320,581 1,311,995 1,307,737 1,363,423 1,398,577 1,310,085
Other������������������������������������������������������� 88,146 89,755 100,590 118,927 125,616 134,856
Operating expenses����������������������������������� 1,194,993 1,230,466 1,253,154 1,376,811 1,439,470 1,345,214
Electric����������������������������������������������������� 1,107,744 1,140,797 1,155,413 1,260,615 1,317,216 1,220,536
Other������������������������������������������������������� 87,249 89,669 97,741 116,195 122,254 124,677
Interest charges����������������������������������������� 49,522 41,129 38,354 36,937 35,770 35,292
Income (loss) before income
taxes and minority interests������������������� 146,796 120,790 112,887 72,463 55,859 67,610
Income taxes ��������������������������������������������� 57,857 43,038 46,075 29,853 21,481 25,404
Net income (loss)��������������������������������������� 89,288 76,849 65,967 41,726 33,991 41,812YenPer Share of Common Stock:
Basic net income (loss)����������������������������� 187円.91 161円.67 139円.37 88円.19 71円.84 88円.38
Cash dividends applicable to
the year����������������������������������������������������� 60.00 60.00 60.00 60.00 60.00 60.00
At Year-End: Millions of Yen
Total assets������������������������������������������������� 4,049,713円 4,102,319円 4,038,838円 4,059,775円 4,110,877円 4,054,192円
Net property����������������������������������������������� 3,300,739 3,217,981 3,140,200 3,109,292 3,080,446 3,037,054
Long-term debt, less current portion������� 1,739,660 1,724,178 1,689,106 1,712,949 1,811,744 1,724,972
Total equity������������������������������������������������� 979,251 1,052,785 1,092,600 1,084,212 1,072,374 1,089,066
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 120円.27 = U.S.1,ドル the approximate rate of exchange at March 31, 2015.)
Note: Figures less than a million yen are rounded down.
Summary of the Year Ended March 31, 2015
Ordinary loss and net loss for the fourth consecutive fiscal year
In the electricity business, the cost of power purchases from renewable energy increased,
and facility checks and repairs at thermal power stations caused maintenance costs to
increase. However, the extent of losses was less than in the preceding fiscal year, as lighting
and power revenue rose due to an increase in electric power rates during the previous year
and the impact of fuel cost adjustments, as well as to a grant based on the act on purchase
of renewable energy.
45/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Millions of Yen
Thousands of
U.S. Dollars
For the Year: 2011 2012 2013 2014 2015 2015
Operating revenues�������������������������� 1,486,083円 1,508,084円 1,545,919円 1,791,152円 1,873,467円 15,577,184ドル
Electric�������������������������������������������� 1,354,204 1,367,610 1,406,218 1,633,023 1,719,570 14,297,586
Other���������������������������������������������� 131,878 140,474 139,700 158,129 153,897 1,279,597
Operating expenses�������������������������� 1,387,174 1,692,939 1,845,347 1,886,974 1,916,782 15,937,328
Electric�������������������������������������������� 1,261,425 1,562,055 1,715,262 1,746,890 1,779,711 14,797,636
Other���������������������������������������������� 125,748 130,883 130,085 140,083 137,070 1,139,691
Interest charges�������������������������������� 34,025 34,025 37,407 39,429 40,148 333,821
Income (loss) before income
taxes and minority interests���������� 48,318 (214,750) (334,298) (73,732) (72,901) (606,145)
Income taxes ������������������������������������ 19,245 (48,760) (2,195) 20,786 40,324 335,284
Net income (loss)������������������������������ 28,729 (166,390) (332,470) (96,096) (114,695) (953,653)
Yen U.S. Dollars
Per Share of Common Stock:
Basic net income (loss)�������������������� 60円.73 \(351.80) \(702.98) \(203.19) \(242.38) $(2.01)
Cash dividends applicable to
the year�������������������������������������������� 60.00 50.00
At Year-End: Millions of Yen
Thousands of
U.S. Dollars
Total assets���������������������������������������� 4,185,460円 4,428,093円 4,526,513円 4,549,852円 4,784,735円 39,783,282ドル
Net property�������������������������������������� 3,033,125 2,997,232 2,941,114 2,941,142 2,985,935 24,826,938
Long-term debt, less current portion 1,714,429 2,188,601 2,526,729 2,804,896 2,844,538 23,651,269
Total equity���������������������������������������� 1,079,679 888,131 557,799 494,232 450,990 3,749,819
Operating Income (Loss)/Net Income (Loss)
Billions of Yen
Operating Income (Loss) Net Income (Loss)20152014201320122011201020092008200720062005-400-300-200-1000100200300Operating Revenues
Billions of Yen
1,0005001,500
2,000
0 20152014201320122011201020092008200720062005
46/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Management Discussion and Analysis
Kyushu Electric Power Company, Incorporated, and Consolidated Subsidiaries
Year Ended March 31, 2015
Operating Results
In the year ended March 31, 2015, Kyushu Electric
Power recorded a 4.6% year-on-year increase
in operating revenues, to 1,873円.4 billion. In the
electricity business, although the volume of sales
declined, an increase in electricity rates implemented
in the previous fiscal year plus the impact of an
adjustment in fuel costs caused unit charges to
increase, boosting lighting and power revenue. Also,
subsidies related to renewable energy increased.
With regard to expenditures, operating expenses
rose 1.6%, to 1,916円.7 billion. Although Kyushu
Electric Power mounted a groupwide effort to cut
costs, and lower fuel prices reduced fuel costs in
the electricity business, the cost of purchased power
from renewable energy sources increased. Also,
maintenance costs grew due to inspections and repairs
on thermal power stations.
As a result of these factors, performance at the
operating level improved by 52円.5 billion, resulting in
an operating loss of 43円.3 billion.
Other revenues expanded 6.7%, to 16円.5
billion, due to higher foreign exchange gains. Other
expenses declined 8.2%, to 46円.9 billion, due to lower
impairment losses on fixed assets, among other factors.
The ordinary loss improved 57円.7 billion from
the preceding fiscal year, to a loss of 73円.6 billion.
This result stemmed from a 4.6% increase in ordinary
revenues, to 1,890円.0 billion, while ordinary expenses
inched up 1.3%, to 1,963円.7 billion.
The water flow rate rose to 0.7% above average
(100%) during the year under review. For this reason,
Kyushu Electric Power posted a reserve for fluctuations
in water level of 1円.6 billion in preparation for increased
expenses associated with future water shortages.
As one aspect of its management streamlining
efforts, the Company sold off fixed assets whose
divesture would not have a negative impact on the
electric power business. These sales resulted in an
extraordinary gain of 2円.4 billion.
Income taxes increased 19円.5 billion, to 40円.3
billion. This rise was due in part to the impact of a
change in the tax code that drew down deferred tax
assets, causing deferred income taxes to rise.
Due to these factors, the net loss expanded by
18円.5 billion compared with the preceding fiscal year,
to 114円.6 billion. The net loss per share worsened by
39円.19, to 242円.38.
Segment Information
(Before Elimination of Internal Transactions)
(1) Electric Power
The total volume of electrical sales decreased 3.8%,
to 81.27 billion kWh. Contributing to this result was
a 4.9% decrease in general demand, which includes
both domestic lighting and commercial, as cooler
temperatures between May and October reduced air
conditioning demand. Power demand from large-
scale industrial customers was down by 0.9%, as a
fall in demand due to reduced steel production offset
increases in non-ferrous metal production.
On the supply side, the shutdown of nuclear
power plants persisted, but reduced demand and an
increase in power from new energy and other sources
helped to offset this shortfall, and the Company
responded to the remaining difference by adjusting its
thermal power generation. Analysis of the energy mix,
including power generated by Kyushu Electric Power
and power purchased from other companies, shows
that nuclear power accounted for 0%, thermal power
Electric Power
Billions of Yen6000
1,200
1,800-6004000800
1,200-4002011 2012 2013 2014 2015
1,634.8
1,369.5
1,408.3
1,356.3
-121.6
-199.9
-312.686.51,721.8
-68.4
Sales (left) Operating Income (Loss) (right)
Energy-related Business
Billions of Yen100501502000639120
2011 2012 2013 2014 2015
171.010.3164.54.7160.62.5158.03.0186.610.9Sales (left) Operating Income (right)
IT and Telecommunications
Billions of Yen
Sales (left) Operating Income (right)5025751000639120
2011 2012 2013 2014 201596.511.489.711.396.96.694.57.696.26.4
70,000
60,000
50,000
40,000
30,000
20,000
10,000014,000
13,000
12,000
11,000
15,000
16,000
17,00002011201020092008200720062005 2012 2013 2014 2015
Electricity Sales Volume and Peak Load
Millions of kWh Thousands of kW
Peak Load (right) General Demand (left) Large-scale Industrial (left)
57,860
23,419
14,712
58,982
21,217
16,094
60,765
22,191
15,890
60,706
23,693
16,807
62,873
25,209
16,934
61,859
24,024
16,978
60,985
22,407
16,013
63,636
23,838
16,760
61,408
23,944
14,951
60,173
23,614
14,810
60,827
23,623
15,833
47/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
for 86%, hydroelectric for 7% and new energy sources
for 7% of total power.
Electric power segment sales rose 5.3%, to
1,721円.8 billion. Although the volume of sales
declined, an increase in electricity rates implemented
in the previous fiscal year plus the impact of an
adjustment in fuel costs caused unit charges to
increase, boosting lighting and power revenue. Also,
subsidies related to renewable energy increased.
However, operating expenses grew 1.9%, to 1,790円.3
billion. Although lower fuel prices reduced fuel costs,
the cost of purchased power from renewable energy
sources increased. Also, maintenance costs grew due
to inspections and repairs on thermal power stations.
The operating loss consequently decreased by 53円.1
billion, to 68円.4 billion.
(2) Energy-Related Business
Sales increased 9.2% year on year, to 186円.6 billion,
due to increases in power plant maintenance work
and outsourced facility maintenance work. Operating
income grew 5.9%, to 10円.9 billion, owing to higher
cost of sales related to plant construction.
(3) IT and Telecommunications
Sales rose 7.6%, to 96円.5 billion, due to increased
data systems development and higher revenues from
the sale of telecommunication devices. Higher costs
affiliated with broadband services caused operating
income to remain essentially flat, at 11円.4 billion.
(4) Other Business
Sales were 25円.7 billion, down 5.2% year on year, due
to lower revenue stemming from the sale of real estate.
Operating income rose 12.6%, to 3円.6 billion, because
of lower depreciation expenses on rental assets.
Financial Position
(1) Cash Flows
Net cash provided by operating activities came to
88円.7 billion, a 94円.6 billion change from the net
cash used in these activities in the preceding fiscal
year. Although maintenance and other costs related
to electric power caused outflows to increase, cash
inflows benefited from a decrease in thermal fuel costs
and an increase in lighting and power revenue.
Net cash used in investing activities grew 45.1%,
to 268円.4 billion, mainly affected by an increase in
investment in plant and equipment and a decrease in
sales of fixed assets..
Net cash provided by financing activities rose
58.3%, to 310円.8 billion, mainly due to an increase in
proceeds from the issuance of Class A preferred shares.
As a result, cash and cash equivalents on March
31, 2015, stood at 516円.4 billion, up 131円.7 billion
from a year earlier.
(2) Assets, Liabilities and Net Assets
Total assets increased 5.2% year on year, to 4,784円.7
billion. Utility plant, property and equipment decreased
due to ongoing depreciation, but safety enhancement
work at nuclear power plants caused construction in
progress to rise. Also, in current assets the Company
saw an increase in cash and cash and cash equivalents.
Total liabilities grew 6.9%, to 4,333円.7
billion, due to a rise in interest-bearing debt, with
outstanding interest-bearing debt expanding 7.1%, to
3,337円.9 billion.
Net assets benefited from a third-party allocation
(the issuance of 100円.0 billion in Class A preferred
shares to the Development Bank of Japan Inc.).
However, the Company posted a net loss during
the year, and defined retirement benefit plan assets
decreased. As a result, net assets fell by 8.7%, to
450円.9 billion. The equity ratio was 9.0%.
Other
Billions of Yen
Sales (left) Operating Income (right)20103003.01.54.50
2011 2012 2013 2014 201525.73.627.13.227.33.127.22.426.03.3ROA%0-2.52.5-5.0 2011 2012 2013 2014 20151.5-2.7-4.6-1.5 -0.6
Consolidated Interest-bearing Debt and Equity Ratio
Billions of Yen %
5,000
4,000
3,000
2,000
1,000012618243002011201020092008200720062005 2012 2013 2014 2015
Total Assets (left) Interest-bearing Debt (left) Shareholders’ Equity (left) Equity Ratio (right)
431.5
4,784.7
3,337.99.0979.2
4,049.7
2,139.424.21,052.7
4,102.3
2,104.925.71,081.6
4,038.8
2,031.726.81,067.0
4,059.7
2,040.026.31,054.7
4,110.8
2,110.625.71,071.7
4,054.1
2,004.726.41,062.4
4,185.4
2,089.425.4870.3
4,428.0
2,483.219.7539.6
4,526.5
2,910.711.9475.5
4,549.8
3,116.710.5ROE%0-2525
-50 2011 2012 2013 2014 20152.7-17.2
-47.2
-18.9
-25.3
48/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Business risks factors
The following is a list of some significant risk factors that may have an effect on the operating results, financial position, and other aspects of the Group (consolidated).
Forward-looking statements in this report reflect the judgment of the company as of the end of current consolidated fiscal year.1.Changes in systems
affecting the electricity
business
With regard to the matter of electricity system reforms, the new Organization for Cross-regional Coordina-
tion of Transmission Operators was established in April 2015, and the full liberalization of the electricity retail
market will begin in 2016. In addition, at the national government level, discussions are underway on mea-
sures to ensure further neutrality of power transmission and distribution, to be taken starting in 2020. We will
steadily put in place the new internal systems required by these system changes and work to achieve greater
operational efficiency.
The government has also approved the Basic Energy Plan, which established the nation’s basic orientation
in relation to energy supply and demand in cabinet and progressing with deliberations such as the best mix of
energy in the future.
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
We still believe that nuclear power generation is important in terms of energy security and global warming con-
cerns. We will comply with the New Nuclear Regulatory Requirements enforced by the government based on the
lessons learned from the accident at the Fukushima Daiichi Nuclear Power Station and continue our voluntary
efforts in order to improve the safety and reliability. At the same time, we will work to ease the concerns of local
residents regarding nuclear power generation.
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 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, the develop of energy conservation, and
the states of competition in electricity power market. As a result, changes in these factors could have an impact
on the Group’s performance.
4. Fuel Price Fluctuations
Fuel expenses in electricity business fluctuate as a result of trends in CIF prices and in the foreign exchange
markets because we procure sources of fuel for thermal power generation including liquefied natural gas (LNG)
and coal from overseas.
However, fluctuations in fuel prices are reflected in electric rates through the fuel cost adjustment system,
which helps to ease the impact of fuel price volatility on the Group’s performance.5.Costs for the back end
of nuclear operations
The decommissioning of nuclear facilities and the back end of nuclear operations such as the storage, repro-
cessing, and disposal of spent nuclear fuel require super long-term projects that involve uncertainties.
However, risks to operator have been reduced to a certain extent due to the government’s institutional
measures and other factors. Since the costs for the back end of nuclear operations and so forth vary in accor-
dance with factors such as future reviews of systems, changes to estimated future expenses, and the storage
conditions of spent nuclear fuel, however, they may affect the business performance of the Kyuden Group.
49/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary 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 develop-
ing new business area beyond electricity business. In the business operation, we put emphasis on the profit-
ability and work to improve efficiency while pursuing the growth. In case securing the planned profits cannot be
achieved due to the worsening business conditions, the Group’s performance may be affected.
8. Deferred Tax Assets
The recoverability of deferred tax assets reported in the consolidated balance sheet is determined based on esti-
mated future taxable income. Therefore, if estimated future taxable income falls due to factors such as changes
in the business environment, we will have to break into deferred tax assets, and this may affect the business
performance of the Kyuden Group.9.Interest Rate
Fluctuations
The Group’s balance of interest-bearing debt as of the end of March 2015 is 3,337円.9 billion, which accounts
for 70% of total assets of the group. Future changes in interest rates have potential to affect the Group’s
financial condition.
However, 96% 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.
10. Leakage of Information
The Group has established strict internal frameworks to manage in-house information and personal informa-
tion, 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 caused by such as the
infection with a virus and the cyber attacks, the Group’s performance may be affected.
11. 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 tsunami as well as unexpected accidents and illicit acts have
the potential to affect the Group’s performance.
We are also developing a 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.
12. 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.
50/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Consolidated Balance Sheet
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
March 31, 2015
Millions of Yen
Thousands of U.S.
Dollars (Note 1)
2015 2014 2015
ASSETS
PROPERTY (Note 3):
Plant and equipment ����������������������������������������������������������������������������������������������������� 9,692,661円 9,668,646円 80,590,845ドル
Construction in progress������������������������������������������������������������������������������������������������ 410,049 329,749 3,409,407
Total��������������������������������������������������������������������������������������������������������������������������� 10,102,710 9,998,396 84,000,252
Less-
Contributions in aid of construction ����������������������������������������������������������������������������� 173,124 163,824 1,439,469
Accumulated depreciation��������������������������������������������������������������������������������������������� 6,943,649 6,893,429 57,733,844
Total��������������������������������������������������������������������������������������������������������������������������� 7,116,774 7,057,253 59,173,313
Net property��������������������������������������������������������������������������������������������������������������� 2,985,935 2,941,142 24,826,938
NUCLEAR FUEL������������������������������������������������������������������������������������������������������������������� 280,616 281,522 2,333,217
INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 4 and 15)����������������������������������������������������������������������� 85,178 85,275 708,224‌Investments in and advances to nonconsolidated subsidiaries
and affiliated companies (Note 15) �����������������������������������������������������������������������������
102,960 102,311 856,080‌Reserve funds for reprocessing of irradiated nuclear fuel
(Notes 8 and 15)�����������������������������������������������������������������������������������������������������������
282,071 261,058 2,345,316
Assets for retirement benefits (Note 7)������������������������������������������������������������������������� 14,925 239 124,102
Deferred tax assets (Note 11)��������������������������������������������������������������������������������������� 127,072 146,426 1,056,562
Special account related to nuclear power decommissioning (Note. 2.g)������������������� 21,692 180,365
Other ������������������������������������������������������������������������������������������������������������������������������� 25,266 29,229 210,083
Total investments and other assets������������������������������������������������������������������������� 659,168 624,541 5,480,736
CURRENT ASSETS:
Cash and cash equivalents (Note 15)��������������������������������������������������������������������������� 516,480 384,769 4,294,338
Receivables (Note 15) ��������������������������������������������������������������������������������������������������� 199,707 183,568 1,660,494
Allowance for doubtful accounts����������������������������������������������������������������������������������� (822) (855) (6,841)
Inventories, principally fuel��������������������������������������������������������������������������������������������� 81,433 82,559 677,091
Deferred tax assets (Note 11)��������������������������������������������������������������������������������������� 34,068 33,137 283,266
Prepaid expenses and other ����������������������������������������������������������������������������������������� 28,147 19,466 234,039
Total current assets ������������������������������������������������������������������������������������������������� 859,015 702,644 7,142,389
TOTAL���������������������������������������������������������������������������������������������������������������������������������� 4,784,735円 4,549,852円 39,783,282ドル
See notes to consolidated financial statements.
51/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Millions of Yen
Thousands of U.S.
Dollars (Note 1)
2015 2014 2015
LIABILITIES AND EQUITY
LONG-TERM LIABILITIES:
Long-term debt, less current portion (Notes 6 and 15)����������������������������������������������� 2,844,538円 2,804,896円 23,651,269ドル
Liability for retirement benefits (Note 7)����������������������������������������������������������������������� 90,547 51,237 752,870
Reserve for reprocessing of irradiated nuclear fuel (Note 8)��������������������������������������� 322,666 332,882 2,682,853
Asset retirement obligations (Note 9)��������������������������������������������������������������������������� 207,437 202,989 1,724,763
Other ������������������������������������������������������������������������������������������������������������������������������� 34,706 37,831 288,569
Total long-term liabilities ����������������������������������������������������������������������������������������� 3,499,896 3,429,837 29,100,326
CURRENT LIABILITIES:
Current portion of long-term debt (Notes 6 and 15)���������������������������������������������������� 382,425 204,144 3,179,723
Short-term borrowings (Notes 10 and 15) ������������������������������������������������������������������� 119,901 118,521 996,933
Notes and accounts payable (Notes 14 and 15) ��������������������������������������������������������� 160,392 167,725 1,333,601
Accrued income taxes (Note 15) ����������������������������������������������������������������������������������� 4,453 3,448 37,028
Accrued expenses����������������������������������������������������������������������������������������������������������� 98,461 83,719 818,666
Deferred tax liabilities (Note 11)����������������������������������������������������������������������������������� 66 74 549
Other ������������������������������������������������������������������������������������������������������������������������������� 66,456 48,148 552,562
Total current liabilities ��������������������������������������������������������������������������������������������� 832,156 625,782 6,919,065
RESERVE FOR FLUCTUATIONS IN WATER LEVEL������������������������������������������������������������� 1,692 14,070
COMMITMENTS AND CONTINGENCIES (Note 17)
EQUITY (Note 12):
Common stock,
authorized, 1,000,000,000 shares; issued,
474,183,951 shares in 2015 and 2014 ������������������������������������������������������������������� 237,304 237,304 1,973,101
Preferred stock,
authorized, 1,000 shares; issued,
1,000 shares in 2015�������������������������������������������������������������������������������������������������
Capital surplus ��������������������������������������������������������������������������������������������������������������� 130,344 31,130 1,083,764
Retained earnings����������������������������������������������������������������������������������������������������������� 60,175 174,871 500,336
Treasury stock-at cost,
509,481 shares in 2015 and 1,214,196 shares in 2014��������������������������������������� (666) (2,340) (5,545)
Accumulated other comprehensive income:
Unrealized gain on available-for-sale securities��������������������������������������������������������� 4,097 2,352 34,070
Deferred gain on derivatives under hedge accounting��������������������������������������������� 596 4,235 4,961
Foreign currency translation adjustments����������������������������������������������������������������� (18) (450) (152)
Defined retirement benefit plans������������������������������������������������������������������������������� (305) 28,429 (2,537)
Total��������������������������������������������������������������������������������������������������������������������������� 431,528 475,533 3,587,998
Minority interests��������������������������������������������������������������������������������������������������������� 19,462 18,699 161,821
Total equity ��������������������������������������������������������������������������������������������������������������� 450,990 494,232 3,749,819
TOTAL���������������������������������������������������������������������������������������������������������������������������������� 4,784,735円 4,549,852円 39,783,282ドル
See notes to consolidated financial statements.
52/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Consolidated Statement of Operations
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Year Ended March 31, 2015
Millions of Yen
Thousands of U.S.
Dollars (Note 1)
2015 2014 2015
OPERATING REVENUES:
Electric����������������������������������������������������������������������������������������������������������������������������� 1,719,570円 1,633,023円 14,297,586ドル
Other ������������������������������������������������������������������������������������������������������������������������������� 153,897 158,129 1,279,597
Total operating revenues��������������������������������������������������������������������������������������������� 1,873,467 1,791,152 15,577,184
OPERATING EXPENSES (Note 13):
Electric����������������������������������������������������������������������������������������������������������������������������� 1,779,711 1,746,890 14,797,636
Other ������������������������������������������������������������������������������������������������������������������������������� 137,070 140,083 1,139,691
Total operating expenses��������������������������������������������������������������������������������������������� 1,916,782 1,886,974 15,937,328
OPERATING LOSS��������������������������������������������������������������������������������������������������������������� (43,314) (95,821) (360,144)
OTHER EXPENSES (INCOME):
Interest charges ������������������������������������������������������������������������������������������������������������� 40,148 39,429 333,821
Foreign exchange gain��������������������������������������������������������������������������������������������������� (2,227) (1,398) (18,524)
Gain on sales of fixed assets����������������������������������������������������������������������������������������� (2,484) (26,173) (20,659)
Gain on sales of investment securities (Note 4)����������������������������������������������������������� (5,524)
Gain on contribution of securities to retirement benefit trust (Note 4)����������������������� (21,711)
Other-net������������������������������������������������������������������������������������������������������������������������� (7,541) (2,402) (62,706)
Total other expenses (income)-net����������������������������������������������������������������������������� 27,894 (17,780) 231,930
LOSS BEFORE INCOME TAXES AND PROVISION FOR (REVERSAL OF) RESERVE
FOR FLUCTUATIONS IN WATER LEVEL AND MINORITY INTERESTS������������������������������� (71,208) (78,040) (592,074)
PROVISION FOR (REVERSAL OF) RESERVE FOR FLUCTUATIONS IN WATER LEVEL������� 1,692 (4,308) 14,070
LOSS BEFORE INCOME TAXES AND MINORITY INTERESTS ������������������������������������������� (72,901) (73,732) (606,145)
INCOME TAXES (Note 11):
Current����������������������������������������������������������������������������������������������������������������������������� 7,114 5,131 59,153
Deferred��������������������������������������������������������������������������������������������������������������������������� 33,210 15,655 276,131
Total income taxes ����������������������������������������������������������������������������������������������������� 40,324 20,786 335,284
NET LOSS BEFORE MINORITY INTERESTS����������������������������������������������������������������������� (113,225) (94,519) (941,429)
MINORITY INTERESTS IN NET INCOME OF CONSOLIDATED SUBSIDIARIES������������������ (1,470) (1,576) (12,223)
NET LOSS��������������������������������������������������������������������������������������������������������������������������� \ (114,695) \ (96,096) $ (953,653)
Yen U.S. Dollars
PER SHARE OF COMMON STOCK (Note 2.s):
Basic net loss ����������������������������������������������������������������������������������������������������������������� \(242.38) \(203.19) $(2.01)
Cash dividends applicable to the year���������������������������������������������������������������������������
See notes to consolidated financial statements.
Section 5
Financial Information
53/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Consolidated Statement of Comprehensive Income
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Year Ended March 31, 2015
Millions of Yen
Thousands of U.S.
Dollars (Note 1)
2015 2014 2015
NET LOSS BEFORE MINORITY INTERESTS����������������������������������������������������������������������� \(113,225) \ (94,519) $ (941,429)
OTHER COMPREHENSIVE LOSS (Note 18):
Unrealized gain (loss) on available-for-sale securities������������������������������������������������� 1,188 (16,670) 9,878
Deferred (loss) gain on derivatives under hedge accounting ������������������������������������� (1,759) 464 (14,626)
Foreign currency translation adjustments ������������������������������������������������������������������� (25) (1,429) (209)
Defined retirement benefit plans����������������������������������������������������������������������������������� (28,192) (683) (234,411)‌Share of other comprehensive (loss) income in
nonconsolidated subsidiaries and affiliated companies��������������������������������������������� (1,171) 2,816 (9,741)
Total other comprehensive loss������������������������������������������������������������������������������������� (29,960) (15,503) (249,109)
COMPREHENSIVE LOSS���������������������������������������������������������������������������������������������������� \(143,186) \(110,023) $(1,190,539)
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO:
Owners of the parent����������������������������������������������������������������������������������������������������� \(144,891) \(111,780) $(1,204,719)
Minority interests ����������������������������������������������������������������������������������������������������������� 1,705 1,757 14,180
See notes to consolidated financial statements.
54/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Consolidated Statement of Changes in Equity
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Year Ended March 31, 2015
Thousands of Shares/Millions of Yen
Common Stock Preferred Stock
Capital
Surplus
Retained
Earnings
Treasury Stock Accumulated Other Comprehensive Income
Total
Minority
Interests Total Equity
Shares Amount Shares Amount Shares Amount
Unrealized
Gain on
Available-
for-Sale
Securities
Deferred
Gainon
Derivatives
underHedge
Accounting
Foreign
Currency
Translation
Adjustments
Defined
Retirement
Benefit
Plans
BALANCE AT APRIL 1, 2013������������ 474,183 237,304円 \ 31,130 \ 252,145 1,246 \(2,373) \ 19,212 \ 3,747 \(1,481) \ 539,684 18,114円 \ 557,799‌Cumulative effects of changes in
accounting policies���������������������� 18,822 \ 28,773 47,596 (291) 47,304
Restated Balance������������������������������ 474,183 237,304円 \ 31,130 270,967円 1,246 \(2,373) \ 19,212 \ 3,747 \(1,481) \ 28,773 \ 587,280 17,822円 \ 605,103
Net loss������������������������������������������ (96,096) (96,096) (96,096)
Purchase of treasury stock������������ 14 (18) (18) (18)
Disposal of treasury stock������������ (47) 51 51 51
Net change in the year������������������ (16,859) 488 1,031 (344) (15,684) 876 (14,807)
BALANCE AT MARCH 31, 2014�������� 474,183 237,304円 \ 31,130 \ 174,871 1,214 \(2,340) \ 2,352 \ 4,235 \ (450) 28,429円 \ 475,533 18,699円 \ 494,232‌Issuance of preferred stock
(Note 12)���������������������������������������� 1 \ 50,000 50,000 100,000 100,000‌Transfer from preferred stock
to capital surplus (Note 12)���������� (50,000) 50,000
Net loss������������������������������������������ (114,695) (114,695) (114,695)
Purchase of treasury stock������������ 13 (14) (14) (14)
Disposal of treasury stock������������ (303) (254) 580 277 277Changes by share exchange
(Note 20.a)������������������������������������ (482) (463) 1,107 624 624
Net change in the year������������������ 1,745 (3,639) 432 (28,734) (30,195 ) 762 (29,433)
BALANCE AT MARCH 31, 2015�������� 474,183 237,304円 1 \ 130,344円 \ 60,175 509 \ (666) \ 4,097 \ 596 \ (18) \ (305) \ 431,528 19,462円 \ 450,990
Thousands of U.S. Dollars (Note 1)
Common
Stock
Preferred
Stock
Capital
Surplus
Retained
Earnings
Treasury
Stock
Accumulated Other Comprehensive Income
Total
Minority
Interests Total Equity
Unrealized
Gain on
Available-
for-Sale
Securities
Deferred
Gain on
Derivatives
under
Hedge
Accounting
Foreign
Currency
Translation
Adjustments
Defined
Retirement
Benefit
Plans
BALANCE AT MARCH 31, 2014����������������������� 1,973,101ドル $ 258,838 1,453,990ドル $(19,458) 19,559ドル 35,219ドル $(3,748)236,377ドル 3,953,880ドル 155,480ドル 4,109,361ドル‌Issuance of preferred stock
(Note 12)������������������������������������������������������� 415,731ドル 415,731 831,462 831,462‌Transfer from preferred stock
to capital surplus (Note 12)������������������������� (415,731) 415,731
Net loss��������������������������������������������������������� (953,653) (953,653) (953,653)
Purchase of treasury stock��������������������������� (122) (122) (122)
Disposal of treasury stock��������������������������� (2,521) 4,828 2,307 2,307Changes by share exchange
(Note 20.a)��������������������������������������������������� (4,015) 9,206 5,190 5,190
Net change in the year��������������������������������� 14,511 (30,257) 3,595 (238,915) (251,066) 6,340 (244,726)
BALANCE AT MARCH 31, 2015����������������������� 1,973,101ドル $ 1,083,764ドル $ 500,336 $ (5,545) 34,070ドル $ 4,961 $ (152)$ (2,537) 3,587,998ドル 161,821ドル 3,749,819ドル
See notes to consolidated financial statements.
55/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Consolidated Statement of Cash Flows
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Year Ended March 31, 2015
Millions of Yen
Thousands of U.S.
Dollars (Note 1)
2015 2014 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Loss before income taxes and minority interests��������������������������������������������������������� \ (72,901) \ (73,732) $ (606,145)
Adjustments for:
Income taxes paid������������������������������������������������������������������������������������������������������� (5,812) (3,965) (48,331)
Depreciation and amortization����������������������������������������������������������������������������������� 193,972 202,856 1,612,811
Decommissioning costs of nuclear power units ������������������������������������������������������� 4,293 1,978 35,700
Reversal of reserve for reprocessing of irradiated nuclear fuel������������������������������� (12,770) (14,031) (106,181)
Loss on disposal of plant and equipment����������������������������������������������������������������� 6,643 6,438 55,236
Provision for (reversal of) reserve for fluctuation in water level������������������������������� 1,692 (4,308) 14,070
Gain on sales of fixed assets��������������������������������������������������������������������������������������� (2,484) (26,173) (20,659)
Gain on sales of investment securities ��������������������������������������������������������������������� (5,524)
Gain on contributions of securities to retirement benefit trust ������������������������������� (21,711)
Changes in assets and liabilities:
Increase in reserve funds for reprocessing of irradiated nuclear fuel����������������� (21,012) (20,902) (174,712)
Increase in trade receivables����������������������������������������������������������������������������������� (15,489) (40,493) (128,793)
Decrease (increase) in inventories, principally fuel����������������������������������������������� 1,125 (9,481) 9,356
Increase (decrease) in trade payables ������������������������������������������������������������������� 1,697 (5,534) 14,115
Decrease in liability for retirement benefits����������������������������������������������������������� (5,823) (10,577) (48,419)
Other-net����������������������������������������������������������������������������������������������������������������������� 15,606 19,239 129,762
Total adjustments ������������������������������������������������������������������������������������������������������� 161,637 67,809 1,343,957
Net cash provided by (used in) operating activities��������������������������������������������� 88,736 (5,922) 737,811
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures including nuclear fuel����������������������������������������������������������������� (293,944) (236,378) (2,444,040)
Proceeds from contribution in aid of construction������������������������������������������������������� 23,259 12,858 193,395
Proceeds from sales of fixed assets����������������������������������������������������������������������������� 3,137 27,591 26,086
Payments for investments and advances��������������������������������������������������������������������� (679) (2,966) (5,649)
Proceeds from sales of investment securities and collections of advances������������� 3,181 14,845 26,453
Other-net������������������������������������������������������������������������������������������������������������������������� (3,367) (914) (28,002)
Net cash used in investing activities��������������������������������������������������������������������� (268,413) (184,963) (2,231,755)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of bonds��������������������������������������������������������������������������������� 139,570 194,488 1,160,480
Repayments of bonds����������������������������������������������������������������������������������������������������� (99,800) (163,842) (829,799)
Proceeds from long-term loans������������������������������������������������������������������������������������� 275,475 280,344 2,290,476
Repayments of long-term loans������������������������������������������������������������������������������������� (102,184) (76,447) (849,628)
Net increase (decrease) in short-term borrowings������������������������������������������������������� 1,379 (1,011) 11,471
Net decrease in commercial paper������������������������������������������������������������������������������� (33,000)
Proceeds from issuance of preferred stock ����������������������������������������������������������������� 99,597 828,116
Other-net������������������������������������������������������������������������������������������������������������������������� (3,231) (4,134) (26,867)
Net cash provided by financing activities������������������������������������������������������������� 310,807 196,397 2,584,250
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS 579 51 4,816
NET INCREASE IN CASH AND CASH EQUIVALENTS��������������������������������������������������������� 131,710 5,561 1,095,123
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR����������������������������������������������� 384,769 379,207 3,199,215
CASH AND CASH EQUIVALENTS AT END OF YEAR����������������������������������������������������������� \ 516,480 \ 384,769 $ 4,294,338
See notes to consolidated financial statements.
56/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
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 reclas-
sifications 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, 2014, to conform to the classifications used in the consolidated
financial statements for the year ended March 31, 2015.
The U.S. dollar amounts included herein are provided solely for the
convenience of readers outside Japan and are stated at the rate of 120円.27
= U.S. 1,ドル the approximate exchange rate prevailing on March 31, 2015. 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, 2015, include the accounts of the
Company and its 40 subsidiaries (together, the "Companies"). All significant
intercompany transactions and balances have been eliminated in consolidation.
Investments in 15 (17 for 2014) nonconsolidated subsidiaries and 14 affiliated
companies are accounted for by the equity method.
The Company adopts the control and influence concepts. Under these
concepts, 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.
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 noncon-
solidated 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— Major requirements under Accounting Standards
Board of Japan (the "ASBJ") Statement No. 21, "Accounting Standard for
Business Combinations" are as follows: (a) The standard requires account-
ing 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.
Under the accounting regulations, applicable to electric utillity providers
properties, which are required for decommissioning of nuclear power units
or which need maintenance and management even after nuclear power units
have been in the process of decommissioning, are to be included in "Plant
and equipment."
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
Notes to Consolidated Financial Statements
Kyushu Electric Power Company, Incorporated and Consolidated Subsidiaries
Year Ended March 31, 2015
Section 5
Financial Information
57/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
impairment loss would be recognized if the carrying amount of an asset or
asset group exceeds the sum of the undiscounted future cash flows expected
to result from the continued use and eventual disposition of the asset or asset
group. The impairment loss would be measured as the amount by which the
carrying amount of the asset exceeds its recoverable amount, which is the
higher of the discounted cash flows from the continued use and eventual
disposition of the asset or the net selling price at disposition.
e. Amortization of Nuclear Fuel— Amortization of nuclear fuel is computed
based on the proportion of current heat produced to the estimated total
potential heat production over the estimated useful life of the nuclear fuel.
f. Investment Securities— Investment securities are classified and account-
ed for, depending on management’s intent, as follows:
(a) Held-to-maturity debt securities are stated at cost with discounts or premi-
ums amortized throughout the holding periods; (b) Available-for-sale securi-
ties, 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. Special account related to nuclear power decommissioning
On March 13, 2015, the Japanese government, i.e., the Ministry of Economy,
Trade and Industry ("METI"), revised the accounting regulation applicable
to electric utility providers. Relating to accounting treatments in case the
Company decides to decommission nuclear power units due to factors such
as a change of the government’s energy policy, prior to March 13, 2015, the
Company recorded losses on the write-off of carrying amounts of nuclear
power units (excluding for properties required for decommissioning of nuclear
power unit or need maintenance and management even after nuclear power
units have been in process of decommissioning and assets retirement
costs), construction in progress and nuclear fuel ("carrying amounts related
to nuclear power units"), and reprocessing costs of irradiated nuclear fuel
and costs of separating the components of nuclear fuel ("costs related to
nuclear power decommissioning") at one time when the Company decided to
decommission. Under the revised accounting regulation, on and after March
13, 2015, the Company is permitted to transfer the carrying amounts related
to nuclear power units and costs related to nuclear power decommission-
ing to "special account related to nuclear power decommissioning" when
the Company decides to decommission nuclear power units and applies to
the Minister of METI for adopting the above special account, because they
are expected to be collected through regulated electricity fees. The special
account is amortized in proportion to the amounts of future regulated electric-
ity fees collected, after approval of the Minister of METI.
On March 18, 2015, the Company decided to decommission No. 1 unit
of its Genkai nuclear power station. According to the revised accounting
regulation, with respect to the No. 1 unit of its Genkai nuclear power station,
the Company transferred the carrying amounts related to nuclear power units
of 15,317円 million (127,358ドル thousand) and costs related to nuclear power
decommissioning of 6,375円 million (53,006ドル thousand), totaling 21,692円
million (180,365ドル thousand), to "special account related to nuclear power
decommissioning"presented in investments and other assets. On April 21,
2015 the Minister of METI approved the application for adopting the special
accounting treatment which the Company submitted.
As a result, loss before income taxes and minority interests decreased
by 21,692円 million (180,365ドル thousand), and basic net loss per share
decreased by 32円.68 (0ドル.27) for the year ended March 31, 2015.
h. 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 fund
investments in bonds that represent short-term investments, all of which
mature or become due within three months of the date of acquisition.
i. Inventories— Inventories are stated at the lower of cost, principally
determined by the average method, or net selling value.
j. 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.
k. Foreign Currency Financial Statements— The balance sheet accounts of
the consolidated foreign subsidiaries, and nonconsolidated foreign subsidiar-
ies 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 subsidiaries are
translated into yen at the average exchange rate.
Section 5
Financial Information
58/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
l. 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 opera-
tions 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.
m. 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.
Effective April 1, 2000, the Companies adopted a new accounting
standard for retirement benefits and accounted for the liability for retire-
ment benefits based on the projected benefit obligations and plan assets at
the balance sheet date. The projected benefit obligations are attributed to
periods on a straight-line basis. Actuarial gains and losses are amortized on
a straight-line basis over mainly 5 years within the average remaining service
period. Past service costs are amortized on a straight-line basis over mainly 5
years within the average remaining service period.
In May 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 account-
ing 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 were followed by partial amendments
from time to time through 2009.
(a) Under the revised accounting standard, actuarial gains and losses and
past service costs that are yet to be recognized in profit or loss are
recognized within equity (accumulated other comprehensive income),
after adjusting for tax effects, and any resulting deficit or surplus is
recognized as a liability (liability for retirement benefits) or asset (asset
for retirement benefits).
(b) The revised accounting standard does not change how to recognize
actuarial gains and losses and past service costs in profit or loss. Those
amounts are recognized in profit or loss over a certain period no longer
than the expected average remaining service period 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 are
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 cur-
rent period shall be treated as reclassification adjustments.
(c) 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 Companies early applied the revised accounting standard and guid-
ance for retirement benefits for (a), (b) and (c) above effective April 1, 2013, and
changed the method of attributing expected benefit to periods from a straight-
line basis to a benefit formula basis.The Companies recorded the effect of (a)
and (b) above as of April 1, 2013, in accumulated other comprehensive income,
and the effect of (c) above as of April 1, 2013, in retained earnings.
n. Reserve for Reprocessing of Irradiated Nuclear Fuel— This reserve is
provided for reprocessing costs of irradiated nuclear fuel. The annual provi-
sion is calculated in accordance with the accounting regulations set by the
Japanese Government applicable to electric utility providers in Japan.
o. Asset Retirement Obligations— Under ASBJ Statement No. 18, "Account-
ing 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
Section 5
Financial Information
59/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
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%.
On October 1, 2013, the METI revised the accounting regulations and
related regulations concerning allocation of asset retirement costs of nuclear
power units. Prior to October 1, 2013, asset retirement costs of nuclear
power units were allocated to expense through depreciation based on a
proportion of the current generation of electric power to the estimated total
life-time generation of electric power of each unit. Effective October 1, 2013,
the asset retirement costs are allocated to expense through depreciation
based on the straight-line method over a period totaling the remaining useful
life and expected safe storage period.
p. 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.
q. 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.
r. 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.
s. Net Income and Cash Dividends per Share— Basic earnings per share
("EPS") are computed by dividing net income available to common sharehold-
ers 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, 2015 and
2014, because potentially dilutive securities were not outstanding.
Cash dividends per share represent actual amounts applicable to earn-
ings of the respective years.
t. Research and Development Costs— Research and development costs are
charged to income as incurred.
u. New Accounting Pronouncements
Accounting Standards for Business Combinations and Consolidated Financial
Statements— On September 13, 2013, the ASBJ issued revised ASBJ
Statement No. 21, "Accounting Standard for Business Combinations," revised
ASBJ Guidance No. 10, "Guidance on Accounting Standards for Business
Combinations and Business Divestitures," and revised ASBJ Statement No.
22, "Accounting Standard for Consolidated Financial Statements."
Major accounting changes are as follows:
(a) Transactions with noncontrolling interest
A parent’s ownership interest in a subsidiary might change if the parent
purchases or sells ownership interests in its subsidiary. The carrying
amount of minority interest is adjusted to reflect the change in the
parent’s ownership interest in its subsidiary while the parent retains
its controlling interest in its subsidiary. Under the current accounting
standard, any difference between the fair value of the consideration
received or paid and the amount by which the minority interest is
adjusted is accounted for as an adjustment of goodwill or as profit or loss
in the consolidated statement of operation. Under the revised accounting
standard, such difference shall be accounted for as capital surplus as
long as the parent retains control over its subsidiary.
(b) Presentation of the consolidated balance sheet
In the consolidated balance sheet, "minority interest" under the current
accounting standard will be changed to "noncontrolling interest" under
the revised accounting standard.
(c) Presentation of the consolidated statement of operations
In the consolidated statement of operations, "income before minority
interest" under the current accounting standard will be changed to "net
income" under the revised accounting standard, and "net income" under
the current accounting standard will be changed to "net income attribut-
able to owners of the parent" under the revised accounting standard.
(d) Provisional accounting treatments for a business combination
If the initial accounting for a business combination is incomplete by
the end of the reporting period in which the business combination
occurs, an acquirer shall report in its financial statements provisional
amounts for the items for which the accounting is incomplete. Under
Section 5
Financial Information
60/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
the current accounting standard guidance, the impact of adjustments to
provisional amounts recorded in a business combination on profit or loss
is recognized as profit or loss in the year in which the measurement is
completed. Under the revised accounting standard guidance, during the
measurement period, which shall not exceed one year from the acquisi-
tion, the acquirer shall retrospectively adjust the provisional amounts
recognized at the acquisition date to reflect new information obtained
about facts and circumstances that existed as of the acquisition date and
that would have affected the measurement of the amounts recognized as
of that date. Such adjustments shall be recognized as if the accounting
for the business combination had been completed at the acquisition date.
(e) Acquisition-related costs
Acquisition-related costs are costs, such as advisory fees or professional
fees, which an acquirer incurs to effect a business combination. Under
the current accounting standard, the acquirer accounts for acquisition-
related costs by including them in the acquisition costs of the investment.
Under the revised accounting standard, acquisition-related costs shall be
accounted for as expenses in the periods in which the costs are incurred.
The above accounting standards and guidance for transactions with
noncontrolling interest, presentation of the consolidated balance sheet,
presentation of the consolidated statement of operations, and acquisition-
related costs are effective for the beginning of annual periods beginning on
or after April 1, 2015. Earlier application is permitted from the beginning of
annual periods beginning on or after April 1, 2014, except for presentation
of the consolidated balance sheet and presentation of the consolidated
statement of operations. In the case of earlier application, all accounting
standards and guidance above, except for presentation of the consolidated
balance sheet and presentation of the consolidated statement of operations,
should be applied simultaneously.
Either retrospective or prospective application of the revised accounting
standards and guidance for transactions with noncontrolling interest and
acquisition-related costs is permitted. In retrospective application of the
revised standards and guidance, the accumulated effects of retrospective
adjustments for all transactions with noncontrolling interest and acquisition-
related costs which occurred in the past shall be reflected as adjustments to
the beginning balance of capital surplus and retained earnings for the year of
the first-time application. In prospective application, the new standards and
guidance shall be applied prospectively from the beginning of the year of the
first-time application.
The revised accounting standards and guidance for presentation of the
consolidated balance sheet and presentation of the consolidated statement
of operations shall be applied to all periods presented in financial statements
containing the first-time application of the revised standards and guidance.
The revised standards and guidance for provisional accounting
treatments for a business combination are effective for a business
combination which occurs on or after the beginning of annual periods
beginning on or after April 1, 2015. Earlier application is permitted for a
business combination which occurs on or after the beginning of annual
periods beginning on or after April 1, 2014.
The Companies expect to apply the revised accounting standards and
guidance for transactions with noncontrolling interest, presentation of the
consolidated balance sheet, presentation of the consolidated statement
of operations and acquisition-related above from April 1, 2015, and for
provisional accounting treatments for a business combination above for a
business combination which will occur on or after April 1, 2015, and are
in the process of measuring the effects of applying the revised accounting
standards and guidance in future applicable periods.
Section 5
Financial Information
61/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
3. PROPERTY
The breakdown of property at March 31, 2015 and 2014, was as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Costs:Electric power production facilities:
Hydroelectric power����������������������������������������������������������������������������������������������������� \ 798,893 \ 805,336 $ 6,642,503
Thermal power������������������������������������������������������������������������������������������������������������� 1,473,210 1,469,915 12,249,195
Nuclear power ������������������������������������������������������������������������������������������������������������� 1,611,295 1,630,816 13,397,316
Internal-combustion engine power����������������������������������������������������������������������������� 130,217 129,138 1,082,709
Renewable power��������������������������������������������������������������������������������������������������������� 111,190 108,990 924,510
Total��������������������������������������������������������������������������������������������������������������������������� 4,124,808 4,144,197 34,296,236
Transmission facilities ��������������������������������������������������������������������������������������������������� 1,779,845 1,759,126 14,798,748
Transformation facilities������������������������������������������������������������������������������������������������� 994,549 978,919 8,269,305
Distribution facilities������������������������������������������������������������������������������������������������������� 1,409,711 1,389,531 11,721,220
General facilities������������������������������������������������������������������������������������������������������������� 393,145 384,405 3,268,853
Other electricity-related facilities����������������������������������������������������������������������������������� 5,782 5,782 48,075
Other plant and equipment������������������������������������������������������������������������������������������� 984,819 1,006,683 8,188,404
Construction in progress������������������������������������������������������������������������������������������������ 410,049 329,749 3,409,407
Total��������������������������������������������������������������������������������������������������������������������������� 10,102,710 9,998,396 84,000,252
Less-
Contributions in aid of construction ����������������������������������������������������������������������������� 173,124 163,824 1,439,469
Accumulated depreciation����������������������������������������������������������������������������������������������� 6,943,649 6,893,429 57,733,844
Carrying amount����������������������������������������������������������������������������������������������������������������� \ 2,985,935 2,941,142円 24,826,938ドル
4. INVESTMENT SECURITIES
The costs and aggregate fair values of investment securities at March 31, 2015 and 2014, were as follows:
Millions of Yen
March 31, 2015 Cost Unrealized Gains Unrealized Losses Fair Value
Securities classified as:
Available-for-sale:
Equity securities������������������������������������������������������������������������������ 2,734円 3,924円 50円 6,608円
Debt securities�������������������������������������������������������������������������������� 914 387 1,301
Other securities������������������������������������������������������������������������������ 364 71 436
Held-to-maturity���������������������������������������������������������������������������������� 755 7 13 749
Millions of Yen
March 31, 2014 Cost Unrealized Gains Unrealized Losses Fair Value
Securities classified as:
Available-for-sale:
Equity securities������������������������������������������������������������������������������ 3,230円 3,217円 348円 6,099円
Debt securities�������������������������������������������������������������������������������� 1,350 285 1 1,634
Other securities������������������������������������������������������������������������������ 363 34 0 398
Held-to-maturity���������������������������������������������������������������������������������� 1,505 4 151 1,359
Section 5
Financial Information
62/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Thousands of U.S. Dollars
March 31, 2015 Cost Unrealized Gains Unrealized Losses Fair Value
Securities classified as:
Available-for-sale:
Equity securities������������������������������������������������������������������������������ 22,732ドル 32,634ドル 422ドル 54,944ドル
Debt securities�������������������������������������������������������������������������������� 7,602 3,221 10,824
Other securities������������������������������������������������������������������������������ 3,033 595 3,629
Held-to-maturity���������������������������������������������������������������������������������� 6,285 63 115 6,233
The information for available-for-sale securities which were sold during the year ended March 31, 2015, is not disclosed because realized gains and losses on
sales of available-for-sale securities for the fiscal year are immaterial.
Such information for the year ended March 31, 2014, was as follows:
Millions of Yen
March 31, 2014 Proceeds Realized Gains Realized Losses
Available-for-sale:
Equity securities��������������������������������������������������������������������������������������������������������������� 5,763円 5,386円 \ 5
Debt securities����������������������������������������������������������������������������������������������������������������� 560 138 78
Total ��������������������������������������������������������������������������������������������������������������������������������� 6,323円 5,524円 83円
The Company contributed certain securities with a fair value of 32,021円 million to the retirement benefit trust for the Company’s retirement benefit plans and
recognized a noncash gain of 21,711円 million for the year ended March 31, 2014.
5. PLEDGED ASSETS
All of the Company’s assets amounting to 4,390,912円 million (36,508,791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 46,982円
million (390,642ドル thousand), are pledged as collateral for a portion of their
long-term debt at March 31, 2015.
Investments in affiliated companies held by a consolidated subsidiary,
amounting to 26,216円 million (217,983ドル thousand), are pledged as collateral
for bank loans of the affiliated companies and the subsidiary of the affiliated
company at March 31, 2015.
6. LONG-TERM DEBT
Long-term debt at March 31, 2015 and 2014, consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Yen bonds, 0.281% to 3.65%, due serially to 2031������������������������������������������������������� 1,283,630円 1,243,414円 10,672,907ドル
Loans from the Development Bank of Japan Inc., 0.52% to 3.4%,
due serially to 2030��������������������������������������������������������������������������������������������������������� 322,006 291,843 2,677,366
Loans, principally from banks and insurance companies, 0.25% to 2.475%,
due serially to 2031���������������������������������������������������������������������������������������������������������
Collateralized������������������������������������������������������������������������������������������������������������������� 32,070 33,097 266,650
Unsecured����������������������������������������������������������������������������������������������������������������������� 1,580,344 1,429,795 13,139,974
Obligations under finance leases������������������������������������������������������������������������������������� 8,911 10,890 74,094
Total��������������������������������������������������������������������������������������������������������������������������� 3,226,963 3,009,040 26,830,993
Less current portion����������������������������������������������������������������������������������������������������������� 382,425 204,144 3,179,723
Long-term debt, less current portion������������������������������������������������������������������������������� 2,844,538円 2,804,896円 23,651,269ドル
Section 5
Financial Information
63/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
The annual maturities of long-term debt outstanding at March 31, 2015, were as follows:
Year ending March 31 Millions of Yen
Thousands of
U.S. Dollars
2016�������������������������������������������������������������������������������������������������������������������������������������������������������������������� \ 382,425 $ 3,179,723
2017�������������������������������������������������������������������������������������������������������������������������������������������������������������������� 368,763 3,066,131
2018�������������������������������������������������������������������������������������������������������������������������������������������������������������������� 401,159 3,335,488
2019�������������������������������������������������������������������������������������������������������������������������������������������������������������������� 405,798 3,374,063
2020�������������������������������������������������������������������������������������������������������������������������������������������������������������������� 337,454 2,805,805
Thereafter������������������������������������������������������������������������������������������������������������������������������������������������������������ 1,331,362 11,069,780
Total �������������������������������������������������������������������������������������������������������������������������������������������������������������������� 3,226,963円 26,830,993ドル
7. SEVERANCE PAYMENTS AND PENSION PLANS
Employees terminating their employment with the Companies, either volun-
tarily or upon reaching mandatory retirement age, are entitled, under most
circumstances, to severance payments based on credits earned in each year
of service, length of service and certain other factors. As for the Company, if
the termination is made voluntarily at one of a number of specified ages, the
employee is entitled to certain additional payments.
Additionally, the Company and most of the consolidated subsidiaries have
contributory funded defined benefit pension plans covering substantially all
of their employees. In general, eligible employees retiring at the mandatory
retirement age receive pension payments for the several fixed terms selected
by them. As for the Company, eligible employees retiring after at least 20
years of service but before the mandatory retirement age, receive a lump-
sum payment upon retirement and annuities. The Company has established
retirement benefit trusts for the Company’s defined retirement benefit plan.
Certain consolidated subsidiaries calculate liability for retirement benefits
and periodic benefit costs related to defined retirement benefit plans by the
simplified method. Under the simplified method, projected benefit obligations
are principally stated at the necessary payment amounts for voluntary retire-
ment as of the end of the fiscal year. The simplified method for accounting for
defined retirement benefit plans is allowed for a specified small-sized entity
under accounting principles generally accepted in Japan.
Defined retirement benefit plans (excluding plans applying the simplified method)
(1) The changes in defined benefit obligation for the years ended March 31, 2015 and 2014, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Balance at beginning of year��������������������������������������������������������������������������������������������� 435,831円 468,221円 3,623,775ドル
Cumulative effects of changes in accounting policies ��������������������������������������������������� (26,869)
Restated balance��������������������������������������������������������������������������������������������������������������� 435,831 441,352 3,623,775
Current service cost������������������������������������������������������������������������������������������������������� 13,861 14,260 115,254
Interest cost��������������������������������������������������������������������������������������������������������������������� 8,292 8,300 68,945
Actuarial losses��������������������������������������������������������������������������������������������������������������� 49,346 1,136 410,300
Benefits paid������������������������������������������������������������������������������������������������������������������� (20,629) (29,452) (171,526)
Prior service cost������������������������������������������������������������������������������������������������������������� 2,998 1,291 24,932
Others ����������������������������������������������������������������������������������������������������������������������������� (1,056)
Balance at end of year������������������������������������������������������������������������������������������������������� 489,701円 435,831円 4,071,681ドル
Section 5
Financial Information
64/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
(2) The changes in plan assets for the years ended March 31, 2015 and 2014, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Balance at beginning of year��������������������������������������������������������������������������������������������� 387,930円 350,077円 3,225,492ドル
Expected return on plan assets������������������������������������������������������������������������������������� 9,767 9,194 81,213
Actuarial gains����������������������������������������������������������������������������������������������������������������� 28,402 4,597 236,153
Contributions from the employer����������������������������������������������������������������������������������� 8,003 9,395 66,545
Benefits paid������������������������������������������������������������������������������������������������������������������� (17,261) (17,355) (143,524)
Contribution of securities to retirement benefit trust��������������������������������������������������� 32,021
Balance at end of year������������������������������������������������������������������������������������������������������� 416,841円 387,930円 3,465,881ドル
(3) 
Reconciliation between the liability recorded in the consolidated balance sheet and the balances of defined benefit obligation and plan assets as of March 31, 2015
and 2014
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Funded defined benefit obligation����������������������������������������������������������������������������������� \ 484,291 \ 430,742 $ 4,026,705
Plan assets������������������������������������������������������������������������������������������������������������������������� (416,841) (387,930) (3,465,881)
67,450 42,812 560,823
Unfunded defined benefit obligation ������������������������������������������������������������������������������� 5,409 5,088 44,976
Net liability for defined benefit obligation������������������������������������������������������������������������ \ 72,859 \ 47,901 $ 605,800
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Liability for retirement benefits����������������������������������������������������������������������������������������� \ 87,204 47,901円 $ 725,073
Assets for retirement benefits������������������������������������������������������������������������������������������� (14,345) (119,273)
Net liability for defined benefit obligation������������������������������������������������������������������������� \ 72,859 47,901円 $ 605,800
(4) The components of net periodic benefit costs for the years ended March 31, 2015 and 2014, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Current service cost����������������������������������������������������������������������������������������������������������� \ 13,861 14,260円 $ 115,254
Interest cost����������������������������������������������������������������������������������������������������������������������� 8,292 8,300 68,945
Expected return on plan assets ��������������������������������������������������������������������������������������� (9,767) (9,194) (81,213)
Recognized actuarial gains����������������������������������������������������������������������������������������������� (12,796) (934) (106,396)
Amortization of prior service cost������������������������������������������������������������������������������������� (3,828) (2,861) (31,829)
Others��������������������������������������������������������������������������������������������������������������������������������� 293 144 2,441
Net periodic benefit costs������������������������������������������������������������������������������������������������� \ (3,944) \ 9,715 $ (32,798)
(5) 
Amounts recognized in other comprehensive income (before income tax effect) in respect of defined retirement benefit plans for the years ended March 31, 2015
and 2014
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Prior service cost��������������������������������������������������������������������������������������������������������������� \ (6,826) \(4,152) $ (56,762)
Actuarial (losses) gains����������������������������������������������������������������������������������������������������� (33,740) 2,526 (280,542)
Total ����������������������������������������������������������������������������������������������������������������������������������� \(40,567) \(1,625) $(337,304)
Section 5
Financial Information
65/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
(6) 
Amounts recognized in accumulated other comprehensive income (before income tax effect) in respect of defined retirement benefit plans as of March 31, 2015
and 2014
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Unrecognized prior service cost��������������������������������������������������������������������������������������� \ 8,273 15,099円 $ 68,787
Unrecognized actuarial (losses) gains����������������������������������������������������������������������������� (7,296) 26,444 (60,666)
Total ����������������������������������������������������������������������������������������������������������������������������������� \ 976 41,544円 $ 8,121
(7) Plan assets as of March 31, 2015 and 2014
a. Components of plan assets
Plan assets consisted of the followings:
2015 2014
Debt investments���������������������������������������������������������������������������������������������������������������������������������������������������� 45% 45%
Equity investments�������������������������������������������������������������������������������������������������������������������������������������������������� 28 26
General account of life insurance companies������������������������������������������������������������������������������������������������������ 17 18
Others���������������������������������������������������������������������������������������������������������������������������������������������������������������������� 10 11
Total ������������������������������������������������������������������������������������������������������������������������������������������������������������������������ 100% 100%
b. Method of determining the expected rate of return on plan assets
The expected rate of return on plan assets is determined considering distribution of plan assets currently and in the future and the long-term rates of return which
are expected currently and in the future from the various components of the plan assets.
(8) Assumptions used for the years ended March 31, 2015 and 2014, were set forth as follows:
2015 2014
Discount rate���������������������������������������������������������������������������������������������������������������������������������������������������������� Mainly 1.0% Mainly 2.0%
Expected rate of return on plan assets ���������������������������������������������������������������������������������������������������������������� Mainly 2.5% Mainly 2.5%
Defined retirement benefit plans applying the simplified method
(1) The changes in the net carrying amount of liabilities and assets for the years ended March 31, 2015 and 2014, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Balance at beginning of year��������������������������������������������������������������������������������������������� 3,096円 3,445円 25,747ドル
Periodic benefit costs����������������������������������������������������������������������������������������������������� 243 173 2,023
Benefits paid������������������������������������������������������������������������������������������������������������������� (255) (199) (2,128)
Contributions from the employer����������������������������������������������������������������������������������� (321) (323) (2,674)
Balance at end of year������������������������������������������������������������������������������������������������������� 2,762円 3,096円 22,967ドル
Section 5
Financial Information
66/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
(2) 
Reconciliation between the liability and asset recorded in the consolidated balance sheet and the balances of defined benefit obligation and plan assets as of
March 31, 2015 and 2014, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Funded defined benefit obligation����������������������������������������������������������������������������������� \ 5,401 \ 4,680 $ 44,913
Plan assets������������������������������������������������������������������������������������������������������������������������� (4,860) (4,414) (40,410)
541 266 4,503
Unfunded defined benefit obligation ������������������������������������������������������������������������������� 2,220 2,830 18,464
Net carrying amount of liabilities and assets������������������������������������������������������������������� 2,762 3,096 22,967
Liabilities for retirement benefits������������������������������������������������������������������������������������� 3,343 3,336 27,796
Assets for retirement benefits������������������������������������������������������������������������������������������� (580) (239) (4,829)
Net carrying amount of liabilities and assets������������������������������������������������������������������� \ 2,762 \ 3,096 $ 22,967
(3) Periodic benefit costs
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Periodic benefit costs calculated under the simplified method������������������������������������� 243円 173円 2,023ドル
Defined contribution plans
The required contribution to defined contribution plans by the Company and its certain consolidated subsidiaries for the years ended March 31, 2015 and 2014 was
1,767円 million (14,692ドル thousand) and 1,377円 million, respectively.
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 consists of three portions and each of them is calculated in
different ways.
(a) 
The costs reprocessed in Japan Nuclear Fuel Limited ("JNFL") are cal-
culated based on the expected future cash flows discounted at 1.5% at
March 31, 2015 and 2014,
(b) 
The costs reprocessed in the other reprocessing companies are calculated
based on the quantities to be reprocessed as of each balance sheet date
and contracted reprocessing rate,
(c) 
The costs of irradiated nuclear fuels which have no authorized definite
reprocessing plan are calculated based on the expected future cash flows
discounted at 4.0%.
As of April 1, 2005, unrecognized prior costs of 130,495円 million, which
had not been recognized in the past as liability, were incurred 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 104,397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,
2015 was 37,907円 million (315,184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 calcula-
tions of the reserve, such as expected future cash flows and the discount
rate, unrecognized difference might be incurred. The balance of unrecognized
difference as of March 31, 2015 is 86,974円 million (723,158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 5
Financial Information
67/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
9. ASSET RETIREMENT OBLIGATIONS
The changes in asset retirement obligations for the years ended March 31, 2015 and 2014, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Balance at beginning of year��������������������������������������������������������������������������������������������� 203,010円 221,025円 1,687,956ドル
Net change in the year������������������������������������������������������������������������������������������������������ 4,449 (18,015) 36,991
Balance at end of the year ����������������������������������������������������������������������������������������������� 207,459 203,010 1,724,948
Less current portion����������������������������������������������������������������������������������������������������������� 22 21 185
Asset retirement obligations, less current portion���������������������������������������������������������� 207,437円 202,989円 1,724,763ドル
10. SHORT-TERM BORROWINGS
Short-term borrowings were generally represented by bank loans, bearing interest at rates ranging from 0.23% to 1.88% and from 0.26% to 1.88% for the years
ended March 31, 2015 and 2014, respectively.
11. INCOME TAXES
The Companies are subject to national and local income taxes. The aggregate normal statutory tax rates for the Company approximated 30.7% and 33.2% for the
years ended March 31, 2015 and 2014 respectively.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at March 31, 2015 and 2014,
were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Deferred Tax Assets:
Tax loss carryforwards��������������������������������������������������������������������������������������������������� \ 201,720 \ 189,067 $ 1,677,234
Liability for retirement benefits������������������������������������������������������������������������������������� 34,914 39,320 290,298
Depreciation������������������������������������������������������������������������������������������������������������������� 32,856 33,109 273,193
Asset retirement obligations ����������������������������������������������������������������������������������������� 19,637 20,782 163,280
Reserve for reprocessing of irradiated nuclear fuel����������������������������������������������������� 21,373 22,243 177,710
Other ������������������������������������������������������������������������������������������������������������������������������� 68,921 51,689 573,056
Less valuation allowance����������������������������������������������������������������������������������������������� (199,682) (163,834) (1,660,286)
Deferred tax assets����������������������������������������������������������������������������������������������������������� \ 179,741 \ 192,378 $ 1,494,486
Deferred Tax Liabilities:
Gain on contributions of securities to retirement benefit trust����������������������������������� 5,529 5,914 45,973
Assets for retirement benefits��������������������������������������������������������������������������������������� 3,000 87 24,950
Amortization in foreign subsidiary��������������������������������������������������������������������������������� 1,606 1,007 13,358
Unrealized gain on available-for-sale securities����������������������������������������������������������� 1,487 1,108 12,370
Capitalized assets retirement costs ����������������������������������������������������������������������������� 1,346 1,330 11,193
Deferred gain on derivatives under hedge accounting ����������������������������������������������� 1,032 1,915 8,582
Other ������������������������������������������������������������������������������������������������������������������������������� 5,191 1,772 43,162
Deferred tax liabilities������������������������������������������������������������������������������������������������������� \ 19,194 \ 13,137 $ 159,592
Net deferred tax assets����������������������������������������������������������������������������������������������������� \ 160,547 \ 179,240 $ 1,334,893
Section 5
Financial Information
68/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying consolidated statements of opera-
tions for the years ended March 31, 2015 and 2014, was as follows:
2015 2014
Normal effective statutory tax rate������������������������������������������������������������������������������������������������������������������������ 30.7% 33.2%
Valuation allowance������������������������������������������������������������������������������������������������������������������������������������������������ (68.6) (48.6)
Effect of reduction of income tax rate on deferred tax assets���������������������������������������������������������������������������� (14.7) (4.1)
Elimination of unrealized gains������������������������������������������������������������������������������������������������������������������������������ (3.2) (0.8)
Difference of tax rates on special income tax for reconstruction funding���������������������������������������������������������� (4.7)
Other - net���������������������������������������������������������������������������������������������������������������������������������������������������������������� 0.5 (3.2)
Actual effective tax rate������������������������������������������������������������������������������������������������������������������������������������������ (55.3)% (28.2)%
New tax reform laws enacted in 2015 in Japan changed the normal
effective statutory tax rate for the fiscal year beginning on or after April 1,
2015, from approximately 30.7% to 28.7%. The effect of these changes was
to decrease deferred tax assets, net of deferred tax liabilities, in the consoli-
dated balance sheet as of March 31, 2015, by 10,431円 million (86,732ドル
thousand), increase income taxes—deferred in the consolidated statement of
operations for the year then ended by 10,687円 million (88,862ドル thousand),
and increase other comprehensive income in the consolidated statement
of comprehensive income by 263円 million (2,188ドル thousand). Decrease of
deferred tax liabilities in the consolidated balance sheet was immaterial.
At March 31, 2015, the Company and certain subsidiaries have tax loss
carryforwards aggregating 701,739円 million (5,834,698ドル thousand), most of
which are available to be offset against taxable income of the Company and
these subsidiaries and will expire in 9 years. At March 31, 2015, the tax loss
carryforwards for the Company amounting to 87,858円 million (730,513ドル thou-
sand), 114,354円 million (950,814ドル thousand), 310,635円 million (2,582,963ドル
thousand), and 175,583円 million (1,459,907ドル thousand) will expire in the
years ending March 31, 2024, 2023, 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 addi-
tional requirements.
Semiannual interim dividends may also be paid once a year upon resolu-
tion by the Board of Directors if the articles of incorporation of the Company so
stipulate. The Companies Act provides certain limitations on the amounts avail-
able 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 sepa-
rate 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.
Section 5
Financial Information
69/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Issuance of Preferred Stock
The Company issued 1,000 shares of Class A Preferred Stock for 100,000円
million (831,462ドル thousand) by way of third-party allotment to the Develop-
ment Bank of Japan Inc.
(1) 
Way of offering
Third-party allotment to the Development Bank of Japan Inc.
(2) 
Class and number of new shares to be issued
1,000 shares of Class A Preferred Stock
(3) 
Issue price
100円 million (831ドル thousand) per share
(4) 
Total amount of the issue price
100,000円 million (831,462ドル thousand)
(5) 
Amount of preferred stock and additional paid-in capital to be increased
Amount of preferred stock to be increased:  50,000円 million
 (415,731ドル thousand)
 (50円 million per share (415ドル thousand))
Amount of additional paid-in capital to be increased: 50,000円 million
 (415,731ドル thousand)
 (50円 million per share (415ドル thousand))
(6) 
Issue date
August 1, 2014
(7) 
Uses of proceeds
The proceeds from issuance of the Preferred Stock are planned to be used
entirely for construction to enhance the safety of the Company’s nuclear
power plants to meet new regulations for safety of nuclear power plants.
(8) 
Characteristics of the Preferred Stock
The Preferred Stock provides no provision for acquisition or right to
request acquisition using the common stock as consideration that will not
dilute common stock. These stocks also do not provide any voting rights at
the general shareholders meeting.
The Preferred Stock has a provision for acquisition allowing the
Company to acquire this Preferred Stock in exchange for cash the day
after the payment date or thereafter. Furthermore, the Preferred Stock will
provide the Preferred Shareholders with the right to request acquisition of
this Preferred Stock in exchange for cash of the Company the day after the
payment date or thereafter if the Preferred Shareholders follow the pre-
scribed procedures, but the exercise of this right by the Preferred Share-
holders is limited by the agreement to underwriting of the Preferred Stock.
Annual preferred dividend for the Preferred Stock is 3,500円 thousand
(29ドル thousand) per share.
Reduction of Preferred Stock and Additional Paid-in Capital
In preparation for future flexible capital management strategies, the Company
reduced capital stock and additional paid-in capital and transferred them to
other capital surplus, which constitutes the amount available for distribution
to the shareholders, upon issuance of Class A preferred stock mentioned in
"Issuance of Preferred Stock" above on condition that the issue came into
effect on August 1, 2014.
(1) 
Reduced capital stock
50,000円 million (415,731ドル thousand)
As the issuance of Preferred Stock increased the Company’s preferred
stock by 50,000円 million (415,731ドル thousand), the total amounts of
common stock and preferred stock after the effective date of the reduction
didn’t fall below the amounts before the effective date.
(2) 
Reduced additional paid-in capital
50,000円 million (415,731ドル thousand)
As the issuance of Preferred Stock increased the Company’s additional
paid-in capital by 50,000円 million (415,731ドル thousand), the additional
paid-in capital after the effective date of the reduction didn’t fall below the
amounts before the effective date.
(3) 
Method of reducing capital stock and additional paid-in capital
In accordance with the Companies Act, the Company reduced capital stock
and additional paid-in capital and transferred them to other capital surplus.
Section 5
Financial Information
70/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
13. RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to income were 7,343円 million (61,061ドル thousand) and 6,423円 million for the years ended March 31, 2015 and 2014, respectively.
14. RELATED PARTY DISCLOSURES
Significant transactions of the Company with an affiliated company for the years ended March 31, 2015 and 2014 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
KYUDENKO CORPORATION
Transactions:
Purchase of construction works on distribution facilities and other����������������������� 36,073円 32,593円 299,938ドル
Balances at year end:
Payables for construction works��������������������������������������������������������������������������������� 4,618 3,807 38,404
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 securi-
ties 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 reducing 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. 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 is
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. 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.
Section 5
Financial Information
71/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Fair values of financial instruments
The carrying amounts and aggregate fair values of financial instruments at March 31, 2015 and 2014 were as follows:
Millions of Yen
March 31, 2015 Carrying Amount Fair Value Unrecognized Loss
Investment securities:
Held-to-maturity debt securities����������������������������������������������������������������������������������������� \ 755 \ 749 \ (6)
Available-for-sale securities����������������������������������������������������������������������������������������������� 8,346 8,346
Investments in and advances to nonconsolidated subsidiaries and affiliated companies����� 17,295 21,123 3,828
Reserve funds for reprocessing of irradiated nuclear fuel������������������������������������������������� 282,071 282,071
Cash and cash equivalents��������������������������������������������������������������������������������������������������� 516,480 516,480
Receivables ��������������������������������������������������������������������������������������������������������������������������� 199,707 199,707
Total ��������������������������������������������������������������������������������������������������������������������������������������� 1,024,657円 1,028,479円 \ 3,821
Long-term debt:
Bonds����������������������������������������������������������������������������������������������������������������������������������� 1,283,630円 1,323,644円 40,014円
Loans����������������������������������������������������������������������������������������������������������������������������������� 1,934,421 1,984,555 50,133
Short-term borrowings����������������������������������������������������������������������������������������������������������� 119,901 119,901
Notes and accounts payable������������������������������������������������������������������������������������������������� 160,392 160,392
Accrued income taxes����������������������������������������������������������������������������������������������������������� 4,453 4,453
Total ��������������������������������������������������������������������������������������������������������������������������������������� 3,502,799円 3,592,947円 90,148円
Derivatives����������������������������������������������������������������������������������������������������������������������������� \ 3,596 \ 3,596
Millions of Yen
March 31, 2014 Carrying Amount Fair Value Unrecognized Loss
Investment securities:
Held-to-maturity debt securities����������������������������������������������������������������������������������������� \ 1,505 \ 1,359 \ 146
Available-for-sale securities����������������������������������������������������������������������������������������������� 8,132 8,132
Investments in and advances to nonconsolidated subsidiaries and affiliated companies����� 15,382 13,298 2,083
Reserve funds for reprocessing of irradiated nuclear fuel������������������������������������������������� 261,058 261,058
Cash and cash equivalents��������������������������������������������������������������������������������������������������� 384,769 384,769
Receivables ��������������������������������������������������������������������������������������������������������������������������� 183,568 183,568
Total ��������������������������������������������������������������������������������������������������������������������������������������� \ 854,417 \ 852,187 2,230円
Long-term debt:
Bonds����������������������������������������������������������������������������������������������������������������������������������� 1,243,414円 1,283,048円 39,634円
Loans����������������������������������������������������������������������������������������������������������������������������������� 1,754,736 1,799,739 45,003
Short-term borrowings����������������������������������������������������������������������������������������������������������� 118,521 118,521
Notes and accounts payable������������������������������������������������������������������������������������������������� 167,725 167,725
Accrued income taxes����������������������������������������������������������������������������������������������������������� 3,448 3,448
Total ��������������������������������������������������������������������������������������������������������������������������������������� 3,287,845円 3,372,483円 84,637円
Derivatives����������������������������������������������������������������������������������������������������������������������������� \ 6,239 \ 6,239
Section 5
Financial Information
72/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Thousands of U.S. Dollars
March 31, 2015 Carrying Amount Fair Value Unrecognized Loss
Investment securities:
Held-to-maturity debt securities����������������������������������������������������������������������������������������� $ 6,285 $ 6,233 $ (51)
Available-for-sale securities����������������������������������������������������������������������������������������������� 69,398 69,398
Investments in and advances to nonconsolidated subsidiaries and affiliated companies����� 143,807 175,636 31,828
Reserve funds for reprocessing of irradiated nuclear fuel������������������������������������������������� 2,345,316 2,345,316
Cash and cash equivalents��������������������������������������������������������������������������������������������������� 4,294,338 4,294,338
Receivables ��������������������������������������������������������������������������������������������������������������������������� 1,660,494 1,660,494
Total ��������������������������������������������������������������������������������������������������������������������������������������� $ 8,519,641 $ 8,551,418 $ 31,776
Long-term debt:
Bonds����������������������������������������������������������������������������������������������������������������������������������� 10,672,907ドル 11,005,611ドル 332,703ドル
Loans����������������������������������������������������������������������������������������������������������������������������������� 16,083,991 16,500,834 416,843
Short-term borrowings����������������������������������������������������������������������������������������������������������� 996,933 996,933
Notes and accounts payable������������������������������������������������������������������������������������������������� 1,333,601 1,333,601
Accrued income taxes����������������������������������������������������������������������������������������������������������� 37,028 37,028
Total ��������������������������������������������������������������������������������������������������������������������������������������� 29,124,462ドル 29,874,009ドル 749,547ドル
Derivatives����������������������������������������������������������������������������������������������������������������������������� $ 29,905 $ 29,905
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 nonconsoli-
dated subsidiaries and affiliated companies because they are immaterial.
Long-term debt contains its current portion, 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, principally at the quoted price obtained from the financial
institution for other debt securities. Fair value information for 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 accor-
dance 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 Japa-
nese Government. The fair value is based on the carrying amount determined
by discounting the cash flows related to the using plan.
Cash and cash equivalent, and receivables
The carrying amounts of cash and cash equivalents, and receivables approxi-
mate fair values because of their short maturities.
Bonds
The fair values of bonds are based on market price.
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 deter-
mined by discounting the cash flows related to the loans with the interest rate
swaps at the Company’s assumed corporate borrowing rate.
Section 5
Financial Information
73/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Short-term borrowings, notes and accounts payable, and accrued income taxes
The carrying amounts of short-term borrowings, notes and accounts
payable and accrued income taxes approximate fair values because of their
short maturities.
Derivatives
Fair value information 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
2015 2014 2015
Investment securities:
Available-for-sale:
Equity securities����������������������������������������������������������������������������������������������������������� \ 73,739 \ 73,260 $ 613,115
Other securities����������������������������������������������������������������������������������������������������������� 2,336 2,375 19,425
Investments in and advances to nonconsolidated subsidiaries and
affiliated companies:
Equity securities������������������������������������������������������������������������������������������������������������� 71,186 72,372 591,888
Other securities��������������������������������������������������������������������������������������������������������������� 10,868 9,424 90,368
Total ����������������������������������������������������������������������������������������������������������������������������� 158,130円 157,433円 1,314,797ドル
Maturity analysis for financial assets and securities with contractual maturities
Millions of Yen
March 31, 2015
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�������������������������������������������������������� 300円 20円 \ 436
Available-for-sale securities with contractual maturities���������������� \ 39 6 1,301
Reserve funds for reprocessing of irradiated nuclear fuel���������������� 28,501
Cash and cash equivalents������������������������������������������������������������������ 516,480
Receivables ������������������������������������������������������������������������������������������ 199,707
Total ������������������������������������������������������������������������������������������������������ 744,729円 300円 26円 1,737円
Thousands of U.S. Dollars
March 31, 2015
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�������������������������������������������������������� 2,494ドル 166ドル $ 3,625
Available-for-sale securities with contractual maturities���������������� $ 332 50 10,824
Reserve funds for reprocessing of irradiated nuclear fuel���������������� 236,978
Cash and cash equivalents������������������������������������������������������������������ 4,294,338
Receivables ������������������������������������������������������������������������������������������ 1,660,494
Total ������������������������������������������������������������������������������������������������������ 6,192,144ドル 2,494ドル 216ドル 14,449ドル
Reserve funds for reprocessing of irradiated nuclear fuel are provided for reprocessing costs of irradiated nuclear fuel charged by JNFL. The using plan for the
reserve funds is disclosed only for amounts due in one year or less, to comply with agreements with JNFL and to avoid any disadvantages, possibly caused by
disclosure, to the interested parties.
Please see Note 6 for annual maturities of long-term debt.
Section 5
Financial Information
74/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
16. DERIVATIVES
The Company enters into foreign exchange forward contracts, 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 accord-
ing 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, 2015 Hedged Item Contract Amount
Contract Amount
due after One Year Fair Value
Currency swaps:
Buying USD (Note a)��������������������������������������������������������������������������
Accounts
payable 6,197円 1,317円 3,596円
Interest rate swaps:
(fixed-rate payment; floating-rate receipt) (Note b)����������������������������
Long-term
loans 3,092円 2,198円
Total ������������������������������������������������������������������������������������������������ 3,596円
Millions of Yen
March 31, 2014 Hedged Item Contract Amount
Contract Amount
due after One Year Fair Value
Currency swaps:
Buying USD (Note a)��������������������������������������������������������������������������
Accounts
payable 67,869円 6,197円 5,800円
Energy swap agreements:
(fixed-price payment; floating-price receipt) (Note a)�������������������������
Accounts
payable \ 1,430 438円
Interest rate swaps:
(fixed-rate payment; floating-rate receipt) (Note b)����������������������������
Long-term
loans \ 3,970 2,698円
Total ������������������������������������������������������������������������������������������������ 6,239円
Thousands of U.S. Dollars
March 31, 2015 Hedged Item Contract Amount
Contract Amount
due after One Year Fair Value
Currency swaps:
Buying USD (Note a)��������������������������������������������������������������������������
Accounts
payable 51,526ドル 10,950ドル 29,905ドル
Interest rate swaps:
(fixed-rate payment; floating-rate receipt) (Note b)����������������������������
Long-term
loans 25,708ドル 18,275ドル
Total ������������������������������������������������������������������������������������������������ 29,905ドル
Notes:
a) The fair value of derivative transactions is measured at the quoted price obtained from the financial institution.
b) 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 interest rate swaps are included in those of hedged items (i.e., long-term loans) 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 5
Financial Information
75/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
17. COMMITMENTS AND CONTINGENCIES
At March 31, 2015, 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, 2015 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
Co-guarantees of loans, mainly in connection with procurement of fuel�������������������������������������������������������� 103,111円 857,332ドル
Guarantees of employees’ loans ���������������������������������������������������������������������������������������������������������������������� 72,549 603,223
Guarantees under debt assumption agreements�������������������������������������������������������������������������������������������� 70,000 582,023
Other�������������������������������������������������������������������������������������������������������������������������������������������������������������������� 7,602 63,215
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 loss for the years ended March 31, 2015 and 2014, were as follows:
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
Other comprehensive income (loss):
Unrealized gain on available-for-sale securities
Gains arising during the year ������������������������������������������������������������������������������������� \ 1,579 \ 2,758 $ 13,136
Reclassification adjustments to profit or loss����������������������������������������������������������� 197 (26,843) 1,640
Amount before income tax effect���������������������������������������������������������������������������� 1,777 (24,084) 14,777
Income tax effect ����������������������������������������������������������������������������������������������������� (589) 7,414 (4,898)
Total����������������������������������������������������������������������������������������������������������������������������� \ 1,188 \(16,670) $ 9,878
Deferred (losses) gain on derivatives under hedge accounting:
(Losses) gains arising during the year��������������������������������������������������������������������������� \ (2,142) \ 1,233 $ (17,811)
Adjustments for amounts transferred to the initial carrying amounts of hedged items����� (500) (720) (4,157)
Amount before income tax effect���������������������������������������������������������������������������� (2,642) 512 (21,969)
Income tax effect ����������������������������������������������������������������������������������������������������� 883 (48) 7,342
Total����������������������������������������������������������������������������������������������������������������������������� \ (1,759) \ 464 $ (14,626)
Foreign currency translation adjustments:
Gains (losses) arising during the year��������������������������������������������������������������������������� \ 1,235 \ (1,429) $ 10,272
Amount before income tax effect���������������������������������������������������������������������������� 1,235 (1,429) 10,272
Income tax effect ����������������������������������������������������������������������������������������������������� (1,260) (10,482)
Total����������������������������������������������������������������������������������������������������������������������������� \ (25) \ (1,429) $ (209)
Adjustments related to defined retirement benefit plans:
(Losses) gains arising during the year��������������������������������������������������������������������������� \(23,793) \ 3,461 $(197,832)
Reclassification adjustments to profit or loss��������������������������������������������������������������� (16,774) (5,086) (139,472)
Amount before income tax effect���������������������������������������������������������������������������� (40,567) (1,625) (337,304)
Income tax effect ����������������������������������������������������������������������������������������������������� 12,375 941 102,893
Total����������������������������������������������������������������������������������������������������������������������������� \(28,192) \ (683) $(234,411)
Share of other comprehensive (loss) income in nonconsolidated subsidiaries and
affiliated companies:
(Losses) gains arising during the year��������������������������������������������������������������������������� \ (1,349) \ 2,699 $ (11,223)
Reclassification adjustments to profit or loss��������������������������������������������������������������� 178 116 1,482
Total ��������������������������������������������������������������������������������������������������������������������������� \ (1,171) \ 2,816 $(9,741)
Total other comprehensive loss ����������������������������������������������������������������������������������������� \(29,960) \(15,503) $(249,109)
Section 5
Financial Information
76/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
19. SEGMENT INFORMATION
(1) Description of reportable segments
The Companies’ reportable segments are those for which financial informa-
tion is available separately and regular evaluation by the Company’s manage-
ment 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, renewable energy business 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.
(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."
Accounting change in case the Company decides to decommission
nuclear power units due to factors such as a change of the govern-
ment’s energy policy
As described in Note 2.g, the Company applied the revised accounting regu-
lation applicable to electric utility providers relating to accounting treatments
in case the Company decides to decommission nuclear power units due to
factors such as a change of the government’s energy policy, on and after
March 13, 2015. Accordingly, the Company has applied the same accounting
policy to the "Electric Power" segment.
The effect of this change on segment loss of Electric Power was immaterial.
(3) Information about sales, profit, assets and other items at March 31, 2015 and 2014, was as follows:
Millions of Yen2015Reportable segment
Reconciliations Consolidated
Electric Power
Energy related
Business
IT and
Telecommuni-
cations Other Total
Sales:
Sales to external customers�������� 1,719,570円 \ 71,793 \ 69,217 \ 12,886 1,873,467円 1,873,467円
Intersegment sales or transfers���� 2,298 114,878 27,333 12,846 157,356 \(157,356)
Total���������������������������������������� 1,721,869円 186,672円 \ 96,550 \ 25,732 2,030,824円 \(157,356) 1,873,467円
Segment (loss) profit���������������������� \ (68,481) \ 10,983 \ 11,419 \ 3,677 \ (42,400) \ (914) \ (43,314)
Segment assets������������������������������ 4,235,616 375,418 176,152 141,491 4,928,679 (143,943) 4,784,735
Other:
Depreciation�������������������������������� 164,724 9,052 18,028 4,947 196,753 (2,780) 193,972Increase in property and
nuclear fuel��������������������������������� 228,362 22,756 25,550 948 277,617 (4,737) 272,880
Millions of Yen2014Reportable segment
Reconciliations Consolidated
Electric Power
Energy related
Business
IT and
Telecommuni-
cations Other Total
Sales:
Sales to external customers�������� 1,633,023円 \ 78,150 \ 65,841 \ 14,137 1,791,152円 1,791,152円
Intersegment sales or transfers���� 1,805 92,856 23,907 13,004 131,573 \(131,573)
Total���������������������������������������� 1,634,829円 171,007円 \ 89,748 \ 27,142 1,922,726円 \(131,573) 1,791,152円
Segment (loss) profit���������������������� \ (121,615) \ 10,367 \ 11,342 \ 3,266 \ (96,639) \ 818 \ (95,821)
Segment assets������������������������������ 4,057,306 345,698 136,493 136,780 4,676,279 (126,427) 4,549,852
Other:
Depreciation�������������������������������� 172,341 9,210 18,432 5,550 205,534 (2,678) 202,856Increase in property and
nuclear fuel��������������������������������� 216,181 23,927 19,808 1,438 261,355 (4,351) 257,004
Section 5
Financial Information
77/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Thousands of U.S. Dollars2015Reportable segment
Reconciliations Consolidated
Electric Power
Energy related
Business
IT and
Telecommuni-
cations Other Total
Sales:
Sales to external customers�������� 14,297,586ドル $ 596,939 $ 575,515 $ 107,142 15,577,184ドル 15,577,184ドル
Intersegment sales or transfers���� 19,110 955,170 227,266 106,811 1,308,359 $(1,308,359)
Total���������������������������������������� 14,316,697ドル 1,552,109ドル $ 802,782 $ 213,954 16,885,543ドル $(1,308,359) 15,577,184ドル
Segment (loss) profit���������������������� $ (569,397) $ 91,326 $ 94,952 $ 30,575 $ (352,543) $ (7,601) $ (360,144)
Segment assets������������������������������ 35,217,563 3,121,462 1,464,642 1,176,451 40,980,120 (1,196,838) 39,783,282
Other:
Depreciation�������������������������������� 1,369,623 75,268 149,899 41,135 1,635,928 (23,117) 1,612,811Increase in property and
nuclear fuel��������������������������������� 1,898,749 189,214 212,441 7,882 2,308,288 (39,389) 2,268,899
Notes:
(a) Reconciliations of segment (loss) profit and segment assets are intersegment transaction eliminations.
(b) Segment (loss) profit is adjusted to reflect operating loss in the consolidated statement of operations.
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.
20. BUSINESS COMBINATIONSa. Conversion of Kyushu Telecommunication Network Co., Ltd. (consoli-
dated subsidiary of the Company), to a wholly owned subsidiary through
share exchange
1. Overview of the transaction
(1) Name and business of parties to the business combination
Combining company (wholly owning parent company in the share
exchange)
Name: Kyushu Electric Power Company, Incorporated ("the Company")
Business: Electricity business and others
Combined company (wholly owned subsidiary company in the share
exchange)
Name: Kyushu Telecommunication Network Co., Ltd. ("QTNet")
Business: telecommunications business and others
(2) Date of the business combination
November 14, 2014
(3) Legal form of the business combination
A share exchange (the "Share Exchange") in which the Company is the
wholly owning parent company and QTNet is the wholly owned subsid-
iary company
(4) Company Name following the business combination
No change
(5) Other items related to the overview of the transaction
The Company reached the decision to convert QTNet into a wholly
owned subsidiary of the Company through the Share Exchange, thereby
creating a structure that would facilitate rapid and flexible Group
management in the IT and telecommunications business.
2. Overview of accounting process conducted
The Share Exchange was conducted as a transaction under common
control in accordance with the Accounting Standard for Business Combina-
tions (ASBJ Statement No. 21, as announced on December 26, 2008)
and Guidance on Accounting Standard for Business Combinations and
Accounting Standard for Business Divestitures (ASBJ Guidance No. 10, as
announced on December 26, 2008).
3. Acquisitions of additional shares in subsidiaries
(1) Acquisition cost and its breakdown
Consideration for acquisition
(common shares of the Company) 663円 million 5,514ドル thousand
Direct cost for the acquisition \ 0 million $ 2 thousand
Acquisition cost 663円 million 5,517ドル thousand
Section 5
Financial Information
78/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
(2) Exchange ratio by class of shares, calculation method and number of shares delivered
i. Class of shares, exchange ratio and number of shares delivered
Class of shares
Common shares of the Company
(wholly owning parent company in the Share
Exchange)
Common shares of QTNet
(wholly owned subsidiary company in the Share
Exchange)
Share exchange ratio 1 53
Number of shares delivered in
the Share Exchange
Common shares of the Company: 514,100
Notes:
1. 
Share exchange ratio
53 common shares of the Company delivered for each 1 common share of QTNet
2. 
Number of shares delivered in the Share Exchange
Common shares of the Company delivered by the Company were provided from treasury stock, and no new shares were issued.
ii. Calculation method of share exchange ratio To ensure fairness in calculating the share exchange ratio used in
the Share Exchange, each of the two companies asked a separate
third-party calculating institution to calculate a share exchange ratio.
As its third-party calculating institution, the Company selected the
Yakabe Certified Public Accounting Office, and QTNet selected the
Megumi Tanaka Certified Public Accounting Office.
As the common shares of the Company are listed on the Tokyo
Stock Exchange, the Yakabe Certified Public Accounting Office
adopted the market stock price method for the Company’s shares.
For QTNet, which is unlisted, the office adopted the net asset value
method, the similar company comparison method and the discounted
cash flow method (the "DCF method") to calculate a share exchange
ratio for the Share Exchange.
Meanwhile, the Megumi Tanaka Certified Public Accounting Office
adopted the market stock price method for the Company, as its
common shares are listed on the Tokyo Stock Exchange. For QTNet,
as an unlisted company, the office employed the net asset value
method and the DCF method to calculate the share exchange ratio
for the Share Exchange.
Referring to the calculation results submitted by the third-party
calculation institutions, the Company and QTNet decided on the
above-mentioned share exchange ratio for the Share Exchange
based on deliberative consultation between the two companies.
(3) Amount and cause of bargain purchase gain
i. Amount of bargain purchase gain : 66円 million (553ドル thousand)
ii. Cause Because the consideration for acquisition of additional shares in the
subsidiary was below the amount of reduction in the value of the
Company’s minority interests.b. Transfer of the optical fiber core cable leasing business to Kyushu
Telecommunication Network Co., Ltd.
1. Overview of the transaction
(1) Name and content of the target business
Name of business: The Company’s optical fiber core cable leasing
business and related optical fiber facilities
Business content: The laying of optical fiber cable and leasing of optical
fiber core to telecommunications carriers, including QTNet.
Transferred asset and liability items and their amounts:
Among transferred plant and equipment of 49,143円 million (408,610ドル
thousand), 32,618円 million (271,210ドル thousand) was transferred
through a company split, and 16,525円 million (137,400ドル thousand)
was transferred through the sale of assets. No current assets or
liabilities were transferred.
(2) Date of the business combination
March 1, 2015
(3) Legal form of the business combination
The transfer was made to QTNet through a company split(*). However,
the optical fiber facilities used by QTNet were sold to QTNet under a
separate contract regarding the sale for assets by the book value.
(*) 
This was an absorption-type company split (the "Absorption-Type
Company Split") in which the Company was the splitting company
and QTNet was the succeeding company. In line with the Absorption-
Type Company Split, as a consideration for the assets, QTNet issued
9,600 common shares, all of which were allocated to the Company.
As the Absorption-Type Company Split was an absorption-type com-
pany split between the Company and QTNet, which is wholly owned,
the content of the allocation was determined through discussion
between the two companies.
(4) Company Name following the merger
No change.
Section 5
Financial Information
79/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
(5) Other items related to an overview of the transaction
It is expected that transferring the Company’s optical fiber core cable
leasing service and related optical fiber facilities to QTNet on this basis
will encourage more efficient operational management throughout the
Group by concentrating management resources, while at the same time
enhancing QTNet’s self-directive operational structure.
2. Overview of accounting process conducted
The Absorption-Type Company Split was conducted as a transaction under
common control in accordance with the Accounting Standard for Business
Combinations (ASBJ Statement No. 21, as announced on December 26,
2008) and Guidance on Accounting Standard for Business Combinations
and Accounting Standard for Business Divestitures (ASBJ Guidance No. 10,
as announced on December 26, 2008).
Section 5
Financial Information
80/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
81/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Nonconsolidated Five-year Financial Summary
Kyushu Electric Power Company, Incorporated
Years Ended March 31
Millions of Yen
Thousands of
U.S. Dollars
For the Year: 2011 2012 2013 2014 2015 2015
Operating revenues����������������������� 1,387,517円 1,406,770円 1,448,876円 1,682,994円 1,761,275円 14,644,342ドル
Electric�������������������������������������������� 1,356,317 1,369,537 1,408,339 1,634,829 1,721,869 14,316,697
Other ���������������������������������������������� 31,199 37,232 40,536 48,165 39,405 327,644
Operating expenses�������������������������� 1,269,718 1,569,533 1,721,006 1,756,444 1,790,350 14,886,094
Personnel���������������������������������������� 162,650 167,965 151,844 113,781 113,103 940,414
Fuel ������������������������������������������������ 284,857 520,282 679,722 754,442 678,486 5,641,356
Purchased power �������������������������� 137,063 206,042 269,582 314,961 372,437 3,096,678
Depreciation���������������������������������� 197,977 202,151 180,180 172,333 164,721 1,369,594
Maintenance���������������������������������� 175,986 176,007 147,924 103,155 126,641 1,052,980Reprocessing costs of irradiated
nuclear fuel����������������������������������� 30,795 21,631 17,352 16,502 17,111 142,276Decommissioning costs of nuclear
power units.���������������������������������� 7,524 3,106 2,627 1,978 4,293 35,700Disposal cost of high-level
radioactive waste�������������������������� 8,885 6,010 3,247 3,861
Disposition of property������������������ 15,181 15,334 14,501 10,600 11,491 95,549
Taxes other than income taxes���� 87,680 83,142 82,265 84,339 84,397 701,732
Subcontract fee������������������������������ 67,728 65,948 64,485 62,182 74,332 618,050
Rent������������������������������������������������ 32,789 31,276 29,298 26,920 25,741 214,028
Other ���������������������������������������������� 60,598 70,634 77,974 91,384 117,591 977,730
Interest charges�������������������������������� 32,150 32,266 35,581 38,009 38,693 321,719
Income (loss) before income taxes���� 35,778 (229,754) (343,051) (75,619) (84,905) (705,956)
Net income (loss)������������������������������ 20,443 (174,983) (338,050) (90,939) (119,010) (989,528)
Per share of common stock: Yen U.S. Dollars
Basic net income (loss)�������������������� 43円.19 \(369.74) \(714.33) \(192.17) \(251.32) $(2.08)
Cash dividends applicable to
the year�������������������������������������������� 60.00 50.00
At year-end: Millions of Yen
Thousands of
U.S. Dollars
Total assets �������������������������������������� 3,890,891円 4,110,950円 4,201,704円 4,218,037円 4,390,912円 36,508,791ドル
Net property�������������������������������������� 2,811,194 2,757,023 2,704,014 2,687,936 2,664,541 22,154,668
Long-term debt,
less current portion�������������������������� 1,627,260 2,090,311 2,425,739 2,692,319 2,712,193 22,550,870
Total equity���������������������������������������� 967,515 766,700 429,287 341,405 322,299 2,679,802
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 120円.27 = U.S. 1,ドル the approximate rate of exchange at March 31, 2015.)
* Figures less than a million yen are rounded down.
82/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Nonconsolidated Balance Sheet
Kyushu Electric Power Company, Incorporated
March 31, 2015 (Unaudited)
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
ASSETS
PROPERTY:
Plant and equipment ����������������������������������������������������������������������������������������������������� 8,927,999円 8,975,468円 74,232,974ドル
Construction in progress��������������������������������������������������������������������������������������������� 370,033 310,704 3,076,687
Total��������������������������������������������������������������������������������������������������������������������������� 9,298,033 9,286,172 77,309,662
Less-
Contributions in aid of construction ����������������������������������������������������������������������������� 165,254 155,949 1,374,031
Accumulated depreciation��������������������������������������������������������������������������������������������� 6,468,236 6,442,287 53,780,961
Total��������������������������������������������������������������������������������������������������������������������������������� 6,633,491 6,598,236 55,154,993
Net property��������������������������������������������������������������������������������������������������������������������� 2,664,541 2,687,936 22,154,668
NUCLEAR FUEL������������������������������������������������������������������������������������������������������������������� 280,616 281,522 2,333,217
INVESTMENTS AND OTHER ASSETS:
Investment securities����������������������������������������������������������������������������������������������������� 77,315 76,994 642,853
Investments in and advances to subsidiaries and affiliated companies������������������� 184,605 149,634 1,534,925‌Reserve funds for reprocessing of irradiated nuclear fuel ����������������������������������������� 282,071 261,058 2,345,316
Deferred tax assets��������������������������������������������������������������������������������������������������������� 107,187 141,299 891,225
Special account related to nuclear power decommissioning ������������������������������������� 21,692 180,365
Other ������������������������������������������������������������������������������������������������������������������������������� 33,294 26,986 276,831
Total investments and other assets ����������������������������������������������������������������������� 706,167 655,973 5,871,516
CURRENT ASSETS:
Cash and cash equivalents ������������������������������������������������������������������������������������������� 466,141 334,476 3,875,789
Receivables��������������������������������������������������������������������������������������������������������������������� 167,633 153,366 1,393,810
Allowance for doubtful accounts����������������������������������������������������������������������������������� (452) (519) (3,761)
Fuel and supplies����������������������������������������������������������������������������������������������������������� 60,005 67,306 498,925
Deferred tax assets��������������������������������������������������������������������������������������������������������� 30,371 29,225 252,529
Prepaid expenses and other ����������������������������������������������������������������������������������������� 15,887 8,749 132,095
Total current assets������������������������������������������������������������������������������������������������� 739,586 592,605 6,149,387
TOTAL��������������������������������������������������������������������������������������������������������������������������������� 4,390,912円 4,218,037円 36,508,791ドル
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 120円.27 = U.S. 1,ドル the approximate rate of exchange at March 31, 2015.)
83/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
LIABILITIES AND EQUITY
LONG-TERM LIABILITIES:
Long-term debt, less current portion����������������������������������������������������������������������������� 2,712,193円 2,692,319円 22,550,870ドル
Liability for retirement benefits������������������������������������������������������������������������������������� 69,686 74,526 579,420
Reserve for reprocessing of irradiated nuclear fuel����������������������������������������������������� 322,666 332,882 2,682,853
Asset retirement obligations ����������������������������������������������������������������������������������������� 206,113 201,142 1,713,759
Other ������������������������������������������������������������������������������������������������������������������������������� 17,159 13,581 142,676
Total long-term liabilities ����������������������������������������������������������������������������������������� 3,327,820 3,314,453 27,669,581
CURRENT LIABILITIES:
Current portion of long-term debt��������������������������������������������������������������������������������� 344,632 181,395 2,865,490
Short-term borrowings��������������������������������������������������������������������������������������������������� 115,000 115,000 956,181
Accounts payable����������������������������������������������������������������������������������������������������������� 131,926 145,495 1,096,915
Accrued expenses����������������������������������������������������������������������������������������������������������� 104,490 85,061 868,799
Other ������������������������������������������������������������������������������������������������������������������������������� 43,050 35,226 357,948
Total current liabilities ��������������������������������������������������������������������������������������������� 739,099 562,179 6,145,336
RESERVE FOR FLUCTUATIONS IN WATER LEVEL������������������������������������������������������������� 1,692 14,070
EQUITY:
Common stock,
authorized, 1,000,000,000 shares; issued,
474,183,951 shares in 2015 and 2014 ������������������������������������������������������������������� 237,304 237,304 1,973,101
Preferred stock,
authorized, 1,000 shares; issued,
1,000 shares in 2015�������������������������������������������������������������������������������������������������
Capital surplus:
Additional paid-in capital��������������������������������������������������������������������������������������������� 31,087 31,087 258,482
Other capital surplus��������������������������������������������������������������������������������������������������� 99,309 19 825,719
Retained earnings:
Legal reserve��������������������������������������������������������������������������������������������������������������� 59,326 59,326 493,275
Retained earnings - carryforward������������������������������������������������������������������������������� (107,931) 11,078 (897,411)
Unrealized gain on available-for-sale securities����������������������������������������������������������� 1,062 418 8,830
Deferred gain on derivatives under hedge accounting����������������������������������������������� 2,564 4,323 21,322
Treasury stock-at cost,
192,661 shares in 2015 and 962,489 shares in 2014������������������������������������������� (423) (2,153) (3,517)
Total equity��������������������������������������������������������������������������������������������������������������� 322,299 341,405 2,679,802
TOTAL��������������������������������������������������������������������������������������������������������������������������������� 4,390,912円 4,218,037円 36,508,791ドル
84/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Nonconsolidated Statement of Operations
Kyushu Electric Power Company, Incorporated
Year Ended March 31, 2015 (Unaudited)
Millions of Yen
Thousands of
U.S. Dollars
2015 2014 2015
OPERATING REVENUES:
Electric����������������������������������������������������������������������������������������������������������������������������� 1,721,869円 1,634,829円 14,316,697ドル
Other ������������������������������������������������������������������������������������������������������������������������������� 39,405 48,165 327,644
Total operating revenues��������������������������������������������������������������������������������������������� 1,761,275 1,682,994 14,644,342
OPERATING EXPENSES:
Electric:
Personnel��������������������������������������������������������������������������������������������������������������������� 113,103 113,781 940,414
Fuel������������������������������������������������������������������������������������������������������������������������������� 678,486 754,442 5,641,356
Purchased power��������������������������������������������������������������������������������������������������������� 372,437 314,961 3,096,678
Depreciation����������������������������������������������������������������������������������������������������������������� 164,721 172,333 1,369,594
Maintenance ��������������������������������������������������������������������������������������������������������������� 126,641 103,155 1,052,980
Reprocessing costs of irradiated nuclear fuel����������������������������������������������������������� 17,111 16,502 142,276
Decommissioning costs of nuclear power units ������������������������������������������������������� 4,293 1,978 35,700
Disposal cost of high-level radioactive waste ����������������������������������������������������������� 3,861
Disposition of property������������������������������������������������������������������������������������������������� 11,491 10,600 95,549
Taxes other than income taxes����������������������������������������������������������������������������������� 84,397 84,339 701,732
Subcontract fee����������������������������������������������������������������������������������������������������������� 74,332 62,182 618,050
Rent������������������������������������������������������������������������������������������������������������������������������� 25,741 26,920 214,028
Other����������������������������������������������������������������������������������������������������������������������������� 117,591 91,384 977,730
Total��������������������������������������������������������������������������������������������������������������������������� 1,790,350 1,756,444 14,886,094
Other ������������������������������������������������������������������������������������������������������������������������������� 30,304 38,787 251,974
Total operating expenses ������������������������������������������������������������������������������������������� 1,820,655 1,795,232 15,138,068
OPERATING LOSS��������������������������������������������������������������������������������������������������������������� (59,380) (112,237) (493,726)
OTHER (INCOME) EXPENSES:
Interest charges ������������������������������������������������������������������������������������������������������������� 38,693 38,009 321,719
Foreign exchange gains������������������������������������������������������������������������������������������������� (1,779) (1,257) (14,795)
Gain on sales of fixed assets����������������������������������������������������������������������������������������� (9,867) (27,141) (82,045)
Gain on sales of investment securities������������������������������������������������������������������������� (6,006)
Gain on sales of investments of an affiliated company����������������������������������������������� (2,481)
Gain on contribution of securities to retirement benefit trust������������������������������������� (21,711)
Other-net������������������������������������������������������������������������������������������������������������������������� (3,213) (11,722) (26,719)
Total other (income) expenses-net����������������������������������������������������������������������������� 23,832 (32,310) 198,159
LOSS BEFORE INCOME TAXES AND (REVERSAL OF) PROVISION FOR RESERVE FOR
FLUCTUATIONS IN WATER LEVEL������������������������������������������������������������������������������������� (83,213) (79,927) (691,885)
PROVISION FOR (REVERSAL OF) RESERVE FOR FLUCTUATIONS IN WATER LEVEL������� 1,692 (4,308) 14,070
LOSS BEFORE INCOME TAXES ����������������������������������������������������������������������������������������� (84,905) (75,619) (705,956)
INCOME TAXES:
Current����������������������������������������������������������������������������������������������������������������������������� 486 370 4,047
Deferred��������������������������������������������������������������������������������������������������������������������������� 33,618 14,949 279,523
Total income taxes����������������������������������������������������������������������������������������������������� 34,105 15,320 283,571
NET LOSS��������������������������������������������������������������������������������������������������������������������������� \ (119,010) \ (90,939) $ (989,528)
Yen U.S. Dollars
PER SHARE OF COMMON STOCK:
Basic net loss ����������������������������������������������������������������������������������������������������������������� \(251.32) \(192.17) $(2.08)
Cash dividends applicable to the year���������������������������������������������������������������������������
(U.S. dollar amounts have been translated from yen, for convenience, at the rate of 120円.27= U.S. 1,ドル the approximate rate of exchange at March 31, 2015.)
85/90
Section 5
Financial Information
Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Overview of Power Generation Facilities
(As of March 31, 2015)
Nuclear Power (2 facilities/maximum output 5,258,000 kW)
Station name Maximum output (kW)
Operation
commencementdateSystem Location
Genkai*1
3,478,000 (×ばつ2 ×ばつ2) Oct.1975 Pressurized water reactor Genkai-cho, Higashi Matsuura-gun, Saga Prefecture
Sendai 1,780,000 (×ばつ2) Jul.1984 Pressurized water reactor Satsumasendai-shi, Kagoshima Prefecture
Thermal Power (9 facilities/maximum output 10,680,000 kW) *excluding internal-combustion engines at the Buzen Power Station
Station name Maximum output (kW)
Operation
commencementdateSystem Location
Shin Kokura 1,800,000 (×ばつ3) Sep.1978 LNG Kokura Kita-ku, Kitakyushu-shi, Fukuoka Prefecture
Karita 735,000
(×ばつ1 ×ばつ1) Apr.1972 Coal/heavy oil/crude oil Kanda-machi, Miyako-gun, Fukuoka Prefecture
Buzen 1,000,000 (×ばつ2) Dec1977 Heavy oil/crude oil Buzen-shi, Fukuoka Prefecture
Karatsu*2
875,000
(×ばつ1 ×ばつ1) Jul.1971 Heavy oil/crude oil Karatsu-shi, Saga Prefecture
Matsuura 700,000
(×ばつ1) Jun.1989 Coal Matsuura-shi, Nagasaki Prefecture
Ainoura 875,000
(×ばつ1 ×ばつ1) Apr.1973 Heavy oil/crude oil Sasebo-shi, Nagasaki Prefecture
Shin Oita 2,295,000 (×ばつ6 ×ばつ3)
Jun.1991 LNG Oita-shi, Oita Prefecture
Reihoku 1,400,000 (×ばつ2) Dec.1995 Coal Reihoku-machi, Amakusa-gun, Kumamoto Prefecture
Sendai 1,000,000 (×ばつ2) Dec. 1995 Heavy oil/crude oil Satsumasendai-shi, Kagoshima Prefecture
Hydroelectric Power (143 facilities/maximum output 3,583,681 kW)
Station name Maximum output (kW)
Operation
commencementdateSystem Location
Tenzan 600,000 Dec.1986 Dam and conduit system
(pure pumped-storage) Karatsu-shi, Saga Prefecture
Yanagimata 63,800 Jun.1973 Dam and conduit system Hita-shi, Oita Prefecture
Matsubara 50,600 Aug.1971 Dam system Hita-shi, Oita Prefecture
Ohira 500,000 Dec.1975 Dam and conduit system
(pure pumped-storage) Yatsushiro-shi, Kumamoto Prefecture
Iwayado 52,000 Jan.1942 Dam and conduit system Shiiba-son, Higashi Usuki-gun, Miyazaki Prefecture
Kamishiiba 93,200 May1955 Dam and conduit system Shiiba-son, Higashi Usuki-gun, Miyazaki Prefecture
Tsukabaru 63,050 Oct.1938 Dam and conduit system
Morotsuka-son, Higashi Usuki-gun,
Miyazaki Prefecture
Morotsuka 50,000 Feb.1961 Dam and conduit system Morotsuka-son, Higashi Usuki-gun,
Miyazaki Prefecture
Omarugawa 1,200,000 Jul.2007 Dam and conduit system
(pure pumped-storage) Kijo-cho, Koyu-gun, Miyazaki Prefecture
Hitotsuse 180,000 Jun.1963 Dam and conduit system Saito-shi, Miyazaki Prefecture
Oyodogawa Daiichi 55,500 Jan.1926 Dam system Miyakonojo-shi, Miyazaki Prefecture Oyodogawa
Oyodogawa Daini 71,300 Mar.1932 Dam and conduit system Miyazaki-shi, Miyazaki Prefecture
*with outputs of 50,000 kW or higher
Geothermal Power (6 facilities/maximum output 207,960 kW)
Station name Maximum output (kW)
Operation
commencementdateLocation
Takigami 27,500 Nov.1996 Kokonoe-machi, Kusu-gun, Oita Prefecture
Otake 12,500 Aug.1967 Kokonoe-machi, Kusu-gun, Oita Prefecture
Hatchoubaru 110,000
(×ばつ2) Jun.1977 Kokonoe-machi, Kusu-gun, Oita Prefecture
Hatchoubaru Binary 2,000 Apr.2006 Kokonoe-machi, Kusu-gun, Oita Prefecture
Ogiri 30,000 Mar.1996 Kirishima-shi, Kagoshima Prefecture
Yamagawa 25,960 Mar.1995 Ibusuki-shi, Kagoshima Prefecture
Internal Combustion Power (34 facilities/maximum output 398,950 kW) *including gas turbines on isolated islands and internal-combustion engines at the Buzen Power Station
Station name Maximum output (kW)
Operation
commencementdateLocation
Shinarikawa 60,000
(×ばつ6) Jun.1982
Shinkamigotou-chou, Minami matsuura-gun,
Nagasaki Prefecture
Tatsugo 60,000
(×ばつ6) Jun.1980 Tatsugo-chou, Ooshima-gun, Kagoshima Prefecture
*with outputs of 50,000 kW or higher
Wind Power (2 facilities/maximum output total 3,250 kW) *including gas turbines on isolated islands and internal-combustion engines at the Buzen Power Station
Station name Maximum output (kW)
Operation
commencementdateLocation
Koshikijima wind power 250 Mar.2003 Satsumasendai-shi, Kagoshima Prefecture
Noma-misaki wind park 3,000 Mar.2003 Minamisatsuma-shi, Kagoshima Prefecture
Photovoltaic Power (1 facility/maximum output total 3,000 kW) *including gas turbines on isolated islands and internal-combustion engines at the Buzen Power Station
Station name Maximum output (kW)
Operation
commencementdateLocation
Mega Solar Omuta 3,000 Nov.2010 Omuta-shi, Fukuoka Prefecture
*1 Unit 1 of the Genkai Nuclear Power Plant (559,000 kW) was decommissioned in April 2015
*2 Karatsu Power Station Unit 2 (375,000 kW) and Unit 3 (500,000 kW) were decommissioned in June 2015.
86/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Section 5
Financial Information
Subsidiaries and Affiliated Companies
(As of March 31, 2015)
Consolidated Subsidiaries (40)
Company Name
Capital
(Millions of yen)
Equity
Ownership(%)Business
Energy Business in Kyushu
Oita Liquefied Natural Gas Co., Inc. 7,500 98.0 Receipt, storage, vaporization and delivery and sales of LNG
Kitakyushu Liquefied Natural Gas Co., Inc. 4,000 75.0 Receipt, storage, vaporization and delivery and sales of LNG
Pacific Hope Shipping Limited 4,071 60.0 Purchasing, operating, chartering and renting of LNG carriers
Nishinippon Environmental Energy Co., Inc. 1,010 100.0
Distributed power system business and consultation about energy
efficiency
Kyuden Mirai Energy Company, Incorporated 645 100.0 Renewable energy business
Kyushu Rinsan Co. 490 100.0 Greening construction at power stations and other facilities
Nagashima Wind Hill Co., Ltd. 490 86.0 Sales of electricity generated by wind power
Fukuoka Energy Service Co., Inc. 490 80.0 Heat supply business
Kyuden Technosystems Corporation 327 85.2
Manufacture and sales of electric machinery; installation, mainte-
nance and management of electrical measurement equipment
Kyuden High Tech Corporation 200 100.0 Maintenance and repair of electricity facilities
NISHI NIPPON AIRLINES CO., LTD. 360 54.7 Air cargo transportation
Nishinippon Plant Engineering and Construction Co., Ltd. 150 85.0 Construction, maintenance and repair of power generation facilities
Kyushu Kouatsu Concrete Industries Co., Ltd. 240 51.3 Manufacture and sales of concrete poles
Kyuden Sangyo Co., Inc. 117 100.0 Environmental preservation work at power stations
Miyazaki Biomass Recycle Co., Inc. 100 42.0 Power-generation activities using poultry dung fuel
West Japan Engineering Consultants, Inc. 40 100.0 Consultation and planning of civil engineering and construction
Kushima Wind Hill Corporation 50 51.0 Sales of electricity generated by wind power
Koyo Denki Kogyo Co., Ltd. 20 95.9 Manufacture and sales of HV and LV insulators and other items
Nishigi Kogyo, Co., Inc. 20 74.0 Conduit maintenance for hydroelectric power stations
Energy Business Overseas
Kyuden International Corporation 23,150 100.0 Acquisition and holding of securities of overseas electric companies
Kyuden International Netherlands B.V. 6,545 100.0 Acquisition and holding of securities of overseas electric companies
Kyuden Hsin Tao Power Holdings
2,400
(Millions of
Taiwan
dollars)
100.0 Investment in Hsin Tao IPP busin ess company
Kyushu Electric Australia Pty Ltd126(Millions of
U.S. dollars)
100.0
Share ownership and management (funding, tax, accounting, etc.) of
Kyushu Electric Wheatstone Pty Ltd
Kyushu Electric Wheatstone Pty Ltd119(Millions of
U.S. dollars)
100.0
Ownership of mining interests and assets, trading and sales of output
in Wheatstone LNG project
IT and Telecommunications
Kyushu Telecommunication Network Co., Inc. 22,020 100.0 Fiber-optic cable and broadband services
Kyuden Infocom Company, Inc. 480 100.0 IT-related planning and consultation, and data center business
Nishimu Electronics Industries, Co., Ltd. 300 100.0 Manufacture, sales, installation and maintenance of telecommunica-
tion devices
Kyuden Business Solutions Co., Inc. 100 100.0 Development, operation and maintenance of information systems
RKK Computer Service Co., Inc. 100 61.3 Development and sales of computer software
Lifestyle-oriented Services
DENKI BLDG. CO., Ltd. 3,395 91.9 Leasing and management of real estate
Kyuden Good Life Company, Inc. 300 100.0 Paid elderly nursing home management and nursing services
Capital Kyuden Corporation 285 100.0 Acquiring and owning of securities, loans to group companies
Kyuden Good Life Kumamoto Company, Inc. 200 100.0 Paid elderly nursing home management and nursing services
Kyuden Business Front Inc. 100 100.0 Temporary staffing and job-placement services
Kyuden Good Life Fukuoka Josui Company, Inc. 100 100.0 Paid elderly nursing home management and nursing services
Kyuden Good Life Kagoshima Company, Inc. 100 90.0 Paid elderly nursing home management and nursing services
Kyuden Good Life Higashifukuoka Company, Inc. 100 70.0 Paid elderly nursing home management and nursing services
Kyuden Fudousan Co., Ltd. 32 98.1 Leasing of real estate and site management
Kyuden Office Partner Co., Inc. 30 100.0 Clerical work acceptance on trust and consulting business
Kyushu Maintenance Co., Ltd. 10 82.0 Cleaning and maintenance of real estate
87/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Section 5
Financial Information
Non-consolidated Subsidiaries and Affiliated Companies Accounted for under Equity Method (29)
Company Name
Capital
(Millions of yen)
Equity
Ownership(%)Business
Energy Business in Kyushu
Tobata Co-operative Thermal Power Co., Inc. 9,000 50.0 Wholesale electricity supply
Fukuoka Clean Energy Co., Ltd. 5,000 49.0 Waste incineration and power generation business
Oita Co-operative Thermal Power Co., Inc. 4,000 50.0 Wholesale electricity supply
Kyudenko Corporation 7,901 24.6 Electric work
KYUSYU CRYOGENICS CO., LTD. 450 50.0 Manufacture and sales of liquid oxygen, liquid nitrogen and liquid argon
Kyuhen Co., Ltd. 225 35.9 Manufacture and sales of electrical equipment
Seishin Corporation 200 26.5 Sale of electrical equipment
Plazwire Co., Ltd. 50 100.0 Flame spray coating (painting) business
Nishikyushu Kyodo Kowan Co., Ltd. 50 50.0 Operation and maintenance of coal handling equipment
Kyuken Corporation 100 15.2 Construction and repair of transmission lines
Nishi Nihon Denki Tekkou Co., Ltd. 30 33.5 Design, production and sales of steel towers and steel conduits
Washiodake Wind Power Co., Ltd. 10 100.0 Sales of generated electric power
NISHIGI SURVEYING AND DESIGN CO., LTD. 10 100.0 Investigation, measurement, design, drafting and care of civil engi-
neering/construction projects
Munakataasty Solar Power Co., Ltd. 10 100.0 Sales of electricity generated by solar power
Amami Oshima Wind Power Co., Ltd. 10 75.0 Sales of electric power from wind generation
Energy Business Overseas
KYUDEN ILIJAN HOLDING CORPORATION 3
(Millions of
U.S. dollars)
100.0 Investment in Ilijan IPP business company
Kyushu Tohoku Enrichment Investing SAS 103
(Millions of
Euro)
50.0 Investment in uranium enrichment business
KYUDEN SARULLA PTE. LTD. 21
(Millions of
Singapore
dollars)
100.0 Geothermal power generation
Electricidad Aguila de Tuxpan, S.deR.L.deC.V. 641
(Millions
of Mexico
Pesos)
50.0 Power-generation activities using natural gas fuel
Electricidad Sol de Tuxpan, S.deR.L.deC.V. 493
(Millions
of Mexico
Pesos)
50.0 Power-generation activities using natural gas fuel
IT and Telecommunications
RKKCS Software 10 100.0 Developments and sales of computer software
Environment and Recycling Business
J-Re-Lights Co., Ltd. 275 100.0 Recycling of used fluorescent bulbs
Kyushu Environmental Management Corporation 80 98.1 Recycling of confidential documents
Lifestyle-oriented Services
Kyushu Highlands Development Co., Ltd. 300 100.0 Management of golf courses
Kyushu Housing Guarantee Corporation 272 33.3 Housing and building assessments, security services affairs
Kyuden Shared Business Co., Ltd. 80 100.0 Accounting and personnel services
Kyushu Captioning Co-Production Center Inc. 60 78.3 Subtitle production for broadcasting
Kyuden Home Security Co., Inc. 30 97.5 Home security and monitoring business
Oak Partners Co., Ltd. 3 100.0 Real estate management
88/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Section 5
Financial Information
Outline of Kyushu Electric Power’s History
Fiscal Year Noteworthy events
1951 • Kyushu Electric Power is established.
1955 • The Kamishiiba Power Station, the first in Japan with an arch dam, becomes operational.
1956 • Unit 1 at the Karita Power Station (coal, 75,000 kW) becomes operational.1957• ‌
Kyushu Electric Power’s Central Line (220,000 V), its first super-high-voltage transmission line, becomes operational. Thermal generation capacity
exceeds hydroelectric capacity.
• Unit 1 at the Omura Power Station (coal, 66,000 kW) becomes operational
1960 • ‌
Frequency unification is completed. Unit 1 at the Minato Power Station (coal, 156,000 kW) becomes operational.
1961 • ‌
Unit 1 at the Shin Kokura Power Station (coal, 156,000 kW) becomes operational.1967• ‌
The Otake Power Station (geothermal, 11,000 kW), Japan’s first commercial geothermal generation facility, becomes operational.
• ‌
Unit 1 at the Karatsu Power Station (coal, 156,000 kW) becomes operational, becoming Kyushu Electric Power’s first generation facility with a control computer.
1969 • ‌
Unit 1 at the Oita Power Station (oil, 250,000 kW), Kyushu Electric Power’s first facility designed to run exclusively on heavy fuel oil, becomes operational.
1970 • ‌
The provision of electric lighting to all homes is completed.
1973 • ‌
Unit 1 at the Ainoura Power Plant (coal, 375,000 kW) becomes operational.
1974 • ‌
Unit 1 at the Sendai Power Plant (coal, 500,000 kW) becomes operational.1975• ‌
Unit 1 at the Genkai Nuclear Power Plant (559,000 kW) becomes operational.
• ‌
The Ohira Power Station, then Kyushu Electric Power’s first pumped storagefacility (500,000 kW), becomes operational.1977• ‌
Unit 1 at the Hatchoubaru Power Station (geothermal, 23,000 kW) becomes operational.
• ‌
Unit 1 at the Buzen Power Station (coal, 500,000 kW) becomes operational.1980• ‌
Kyushu Electric Power builds the Central and West Kyushu Substations (500,000 V) and raises the voltage on its Saga Line to 500,000 V.
• ‌
The Electric Power Development Co., Ltd., begins operating the Trans-Kanmon Line (500,000 V).
1981 • Unit 1 at the Genkai Nuclear Power Plant (559,000 kW) becomes operational
1982 • ‌
The Kyushu Energy Center is opened.
1984 • ‌
Unit 1 at the Sendai Nuclear Power Station (890,000 kW) becomes operational.
1985 • Unit 2 at the Sendai Nuclear Power Station (890,000 kW) becomes operational.1986• ‌
Unit 1 at the Tenzan Power Station (300,000 kW), a large-capacity pumped-storage facility, becomes operational.
• ‌
Kyushu Electric Power begins to use automatic control systems on its distribution lines.
1989 • Unit 1 at the Matsuura Power Station (coal, 700,000 kW) becomes operational.
1990 • Kyushu Electric Power achieves a zero outage record for work on high-and low-voltage facilities for the first time in Japan.
1991 • The No. 1 system at the Shin Oita Power Station (LNG, 690,000) becomes operational as Kyushu Electric Power’s first combined-cycle power station.
1994 • Unit 3 at the Genkai Nuclear Power Plant (1,180,000 kW) becomes operational.1995• The Yamagawa Power Station (geothermal, 30,000 kW) becomes operational.
• Unit 1 at the Reihoku Power Station (coal, 700,000 kW) becomes operational.
1996 • The Ogiri Power Station (geothermal, 30,000 kW) becomes operational. • The Takigami Power Station (geothermal, 27,500 kW) becomes operational.
1997 • Unit 4 at the Genkai Nuclear Power Plant (1,180,000 kW) becomes operational.1998• ‌
Kyushu Electric Power begins to operate a superconducting storage system as an electric power facility. It is the first of its type in Japan and one of the
largest in the world.
2000 • The Genkai Energy Park is opened.2001• ‌
A loan agreement is signed for the Tuxpan II IPP project in Mexico. • ‌
The Kyushu Homeland Forestation Program is launched.
• ‌
Unit 1 at the Karita Power Station (coal, 360,000 kW) becomes operational, Kyushu Electric Power’s first pressurized fluidized bed combustion (PFBC) station.
2002 • ‌
Dedicated account managers are assigned to corporate customers.
2003 • ‌
The Koshikijima Wind Power Station (250 kW) becomes operational. • The Noma-Misaki Wind Park Station (3,000 kW) becomes operational.
2004 • ‌
The Omura Power Station is decommissioned. • The Minato Power Station is decommissioned.
2005 • ‌
The Goto Archipelago Link, Japan’s longest sea-bed cable (53 km), becomes operational.
2006 • ‌
The Hatchoubaru Binary Power Station (2,000 kW), Japan’s first commercial geothermal binary power station, becomes operational.
2007 • ‌
"Kyushu Electric Power’s Mission" and brand message "Enlighten Our Future" are adopted.
2009 • Unit 3 at the Genkai Nuclear Power Plant, Japan’s first pluthermal facility, becomes operational.
2010 • ‌
The Mega Solar Omuta, our first large-scale solar power generation station (3,000 kW), becomes operational.2011• ‌
Kyushu Electric Power closes its head office division and branches and established branch offices, a customer center, an electric power center and an
internal combustion center.
2013 • ‌
The Kyushu Energy Center is closed. • ‌
The Oita Power Station is decommissioned.
2015 • ‌
Operations are halted at Unit 1 of the Genkai Nuclear Power Plant • The Karatsu Power Station is decommissioned.
89/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Section 5
Financial Information
Corporate Data
(As of March 31, 2015)
Major ShareholdersNameNumber of Shares Held
(Thousands of Shares)
Shareholding
Ratio (%)
Meiji Yasuda Life Insurance 22,882 4.8
The Master Trust Bank of Japan, Ltd. (trust unit) 21,577 4.6
Kochi Shinkin Bank 14,765 3.1
Nippon Life Insurance Company 14,763 3.1
Japan Trustee Services Bank, Ltd. (trust unit) 12,089 2.6
Kyushu Electric Power Co., Inc. Employees’ Shareholding Association 10,116 2.1
Mizuho Bank, Ltd. 9,669 2.0
The Bank of Fukuoka, Ltd. 8,669 1.8
Sumitomo Mitsui Banking Corporation 8,480 1.8
THE BANK OF NEW YORK MELLON SA/NY 10 (Standing proxy: Settlement Business
Department, The Bank of Tokyo-Mitsubishi UFJ, Ltd.)
5,930 1.3
•Class A preferred sharesNameNumber of Shares Held
(Thousands of Shares)
Shareholding
Ratio (%)
The Development Bank of Japan 1 100.0
Composition of Shareholders
(By Type of Shareholder)
Governmental Organization0.9%Individuals and Other
35.2%
Foreign Investors
17.4%
Financial Institutions
40.3%
Securities Firms1.4%Other Domestic Companies4.8%Composition of Shareholders
(By Number of Shares Held)
5,000 or more3.8%Less than 100
23.1%
100 to 499
33.9%
1,000 to 4,999
25.9%
500 to 999
13.3%Yen0
1,000
2,000
3,000030,000
60,000
90,000
120,000201532014420134201242011420104
Thousands of Shares
Trends of Stock Price and Trading Volume
•Common stock
Company
Overview
Stock
Information
Trade Name Kyushu Electric Power Company, Incorporated
Head Office 
1-82, Watanabe-dori 2-chome, Chuo-ku,
Fukuoka 810-8720, Japan
Phone +81-92-761-3031
Tokyo Branch Office 
7-1, Yurakucho 1-chome, Chiyoda-ku, Tokyo
100-0006, Japan
Phone +81-3-3281-4931
Total Number of
Shares Authorized 1,000,000,000
Common stock 1,000,000,000
Class A preferred shares 1,000
Number of Shares
Issued and Outstanding Common stock 474,183,951
Class A preferred shares 1,000
Number of Shareholders Common stock 163,189
Class A preferred shares 1
Date of Establishment May 1, 1951
Paid-in Capital 237,304,863,699円
Number of Employees 13,148
Shareholders’ Meeting June
Fiscal Year From April 1 to March 31
Stock Listings 
Tokyo Stock Exchange, Fukuoka Stock
Exchange (Code: 9508)
Transfer Agent and Sumitomo Mitsui Trust Bank, Limited
Registrar 
4-1, Marunouchi 1-chome, Chiyoda-ku,
Tokyo, Japan
Accounting Auditor Deloitte Touche Tohmatsu LLC
90/90 Kyushu Electric Power Company Annual Report 2015
Section 3
Special Feature
Section 2
Management Message
Section 4
Management Base
Section 1
Kyushu Electric Power Summary
Section 5
Financial Information
Published September 2015

AltStyle によって変換されたページ (->オリジナル) /