FY 1998
388.5
‐ 301.087.5FY 1999
410.4
‐ 280.6
129.8
FY 2000
392.9
‐ 283.6
109.3
FY 2001
360.0
‐ 310.050.0FY 2002
415.0
‐ 310.0
105.0
FY 2003
410.0
‐ 280.0
130.0
Total of FY 2001
through FY 2003
1,185.0
‐ 900.0
285.05Cash-Flow-Oriented Management
Recent developments, such as the partial liberalization of the retail power market, have created
demanding management conditions. To respond, Kyushu Electric Power is focusing on
improving free cash flow through rigorous measures to increase efficiency and lower cost. This
free cash flow will be used to improve our financial structure and profitability, to create a solid
management foundation. It will be allocated to applications such as reducing our
interest-bearing debt, ensuring price competitiveness and investing in new business areas.
Actual and forecast free cash flow
○しろまるFree cash flow for fiscal 2000 (ended March 31, 2001) was 109円.3 billion, the result of more highly
○しろまるefficient capital spending across the board. Fiscal 2000 was the second year in a row in which we
○しろまるmanaged to maintain a large free cash flow (above 100円 billion), following last year,s figure of 129円.8
○しろまるbillion.
○しろまるLower revenues caused by lower power rates should result in an operating cash flow of about 360円
○しろまるbillion for fiscal 2001, 33円 billion less than the previous year. An increase in construction spending of
○しろまるabout 25円 billion should create free cash flow of about 50円 billion, down roughly 60円 billion.
○しろまる○しろまるPower sales growth starting in fiscal 2002 should result in free cash flow recovering to around
○しろまる100円 billion, and we expect to realize a free cash flow of 285円 billion over the next three years.
○しろまるGenerated free cash flow will be used for dividend payments to shareholders and for measures to
○しろまるimprove our financial structure and profitability. These measures will be:
○しろまるreducing our interest-bearing debt to improve our financial stability, and lowering power rates to
○しろまるmaintain and improve our price competitiveness. Free cash flow will be allocated to effectively
○しろまるimplement these measures in a balanced manner.
○しろまる○しろまるTo generate future cash flow, we will actively invest in new business areas that have the
○しろまるpotential to provide ample returns.
Operating cash flow
Forecast free cash flow
Construction spending
(including incidentals)
Free cash flow
Forecast free cash flow
(Forecast) (Billions of yen)
(Actual)51.323.712.587.5
130.023.7‐ 23.9
129.873.726.19.5109.325.028.5
‐ 3.550.0Dividend payments
Reduction of interest-bearing debt
Other investments
Total
129.0
156.0
285.0
Use of free cash flow
(85.5)
(70.5)