4Special Feature: Interim Management Policy Objectives
Meeting Management Objectives
To remain competitive in the current power market, we will need to make our management
stance clearer to our customers and stakeholders, while speeding up the progress of our man-
agement reforms. In March 2000, Kyushu Electric Power set forth the management objectives
listed below, seeking more efficiency throughout all our management processes and operations.
Our results for fiscal 2000 indicate steady progress in meeting these objectives, while
efficiency should continue to improve throughout fiscal 2001.
Management Objectives
Increasing the stability of our financial foundation by:
•Raising our shareholder capital ratio to at least 20% by the end of fiscal 2003
•Lowering our interest-bearing debt by about 200円 billion (between fiscal 2000 and 2003)
Increasing profitability and asset efficiency by:
•Increasing our ROA to about 1.5% (average for fiscal 2000 through 2003)
•Increasing our ROE to about 8% (average for fiscal 2000 through 2003)
•Ensuring a recurring profit of about 90円 billion (average for fiscal 2000 through 2003)
Shareholder capital ratio [18.0%]
19.1%
FY 1998
Meeting management objectives
Interest-bearing debt
(Billions of yen)
ROA (profit for the term/total assets)ROE15.7%
2,732.60.6%3.8%
FY 1999
17.1%
2,602.60.6%3.6%
FY 2000
2,528.9
[1.5%]1.5%[8.7%]8.3%[18.6%]
19.8%
2,504.0
[1.5%]1.5%[8.1%]7.5%FY 2001
[Forecast]
Management
objectives20%(by end of FY 2003)
2,400.0
(by end of FY 2003)1.5%(average of FY 2000 through 2003)8.0%(average of FY 2000 through 2003)
ROA (after-tax operating profit/total assets) 2.4% 2.8% 3.3% 2.7%
Reference
Note: Figures in brackets are net of difference in appraised values of securities.
Meeting management objectives
We steadily advanced toward our management objectives in fiscal 2000, while efficiency should
continue to improve throughout fiscal 2001.
ROA, ROE
(Billions of yen) (%)
2,700
2,800
2,600
2,500
2,400020221816140’98 ’99 ’00 ’03
........................
......
......ROAROE(%)8106420’98 ’99 ’00 ’00 to ’03
(Target, average)
......0.615.717.119.1 Shareholder capital ratio
Target figures
200 billion less
Target figures20.00.6 1.5 1.53.82,732.6
Interest-bearing debt
2,602.6
2,528.9
2,400.03.68.38.0Shareholder
capital ratioandinterest-bearingdebt