April 30, 2014

The Fiscal Year Ended March 31, 2014 Financial Results Overview 〔Japan GAAP〕(Consolidated)
Kyushu Electric Power Co., Inc.
Stock code: 9508 URL: http://www.kyuden.co.jp/en_index Stock listed on: Tokyo SE, Fukuoka SE
Representative: Mr. Michiaki Uriu, President
Contact: Investor Relations Group, Corporate Planning Division. Tel: +81-92-726-1575
Shareholders' Meeting: June 26, 2014
Commencement of payment of year-end dividend: −
Projected date for submitting annual security report: June 27, 2014
Preparation of supplementary materials for financial results: Yes
Information meeting for financial results: Yes (for analysts and institutional investors)
1. Consolidated Financial Results for FY2013 (April 1, 2013 to March 31, 2014)
(1) Consolidated Operational Results
(Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%)
FY2013 ended March 31, 2014 1,791,152 15.9 -95,821 ― -131,449 ―
FY2012 ended March 31, 2013 1,545,919 2.5 -299,428 ― -331,206 ―
(Note) Comprehensive income : FY2013 -110,023 million yen (−%) FY2012 -320,860 million yen (−%)
(Reference) Investment Profit/Loss under Equity Methods : FY2013 3,152 million yen FY2012 2,015 million yen
(2) Consolidated Financial Position
(Reference) Shareholders' equity: FY2013 475,553 million yen FY2012 539,684 million yen
(3) Consolidated Cash Flow
2. Dividends
(Note) Year-end dividend for FY2014 ending March 31, 2015 has yet to be decided.
We will promptly inform you of a dividend when it is possible for us to make our forecasts.
3. Forecast for FY2014 ending March 2015 (April 1, 2014 to March 31, 2015)
(% show s the changes from the same financial periods of the previous year)
(See page 5 "(1)Analysis regarding business performance Forecast for FY2014" of Attached Material)
(Note) Fiscal 2014 full-year performance outlook for operating income, ordinary income and net income is currently not able to be
We will promptly inform you of our forecasts when it is possible for us to make them.
estimated due to the difficult situations that we can not calculate fuel costs rationally under uncertain prospects of the
resumption of operations of reactors of our nuclear power stations.
Sales Operating income Ordinary income
(% show s the changes from the previous FY)
(Rounded dow n to the nearest million yen)
Cash flow from
operating activities
Cash flow from
investment activities
Cash flow from
financing activities
Cash and cash
equivalents balance
as of term-end
(Unit: million yen) (Unit: million yen) (Unit: million yen) (Unit: million yen)
FY2013 ended March 31, 2014 -5,922 -184,963 196,397 384,769
FY2012 ended March 31, 2013 -135,130 -176,546 412,248 379,207
(Record date) 1Q Interim 3Q Year-end Total
(Unit: yen) (Unit: yen) (Unit: yen) (Unit: yen) (Unit: yen) (Unit: million yen) (%) (%)
FY2012 ended March 31, 2013 ― 0.00 ― 0.00 0.00 ― ― ―
FY2013 ended March 31, 2014 ― 0.00 ― 0.00 0.00 ― ― ―
FY2014 ending March 31, 2015
(forecast)
― 0.00 ― ― ― ―
Annual dividends per share Total dividends
(annual)
Payout ratio
(consolidated)
Dividend rate for net
assets (consolidated)
Total assets Net assets
Shareholders'
equityratio
Net assets
per share
(Unit: million yen) (Unit: million yen) (%) (Unit: yen)
FY2013 ended March 31, 2014 4,549,852 494,232 10.5 1,005.42
FY2012 ended March 31, 2013 4,526,513 557,799 11.9 1,141.13
Net earnings
per share
Fully-diluted
net earnings
per share
Net returnonshareholders'
equity
Ratio of
current
income to
total capital
Ratio of
current
income to
sales
(Unit: million y en) (%) (Unit: yen) (Unit: yen) (%) (%) (%)
FY2013 ended March 31, 2014 -96,096 ― -203.19 ― -18.9 -2.9 -5.3
FY2012 ended March 31, 2013 -332,470 ― -702.98 ― -47.2 -7.4 -19.4
Net income
Net earnings per share
(Unit: million yen) (% ) (Unit: million yen) (% ) (Unit: million yen) (% ) (Unit: million yen) (% ) (Unit: yen)
2Q 940,000 8.3 ― ― ― ― ― ― ―
Year-end 1,895,000 5.8 ― ― ― ― ― ― ―
Net income
Sales Operating income Ordinaly income
※(注記) Note
(1)Changes in significant subsidiaries (changes in scope of consolidated subsidiaries) : No
Newly added:0 Excluded:0
*Notes on the scope of consolidation and the application of the equity method
Consolidated subsidiaries: 40
Non-consolidated subsidiaries accounted for under the equity method: 17
Affiliated companies accounted for under the equity method: 14
Changes in the scope of consolidation and the application of the equity method from March 31, 2012
Consolidated subsidiaries Newly added: 0 Excluded: 0
Under the equity method Newly added: 0 Excluded: 0
(2) Changes in accounting principles, changes in accounting estimates, restatement
1 Changes in accounting principles in line with revised accounting standards : Yes
2 Changes in accounting principles other than 1 : Yes
3 Changes in accounting estimates : Yes
4 Restatement : No
(Note) For details, please refer to Page21 "(5)Notes on Consolidated Financial Statements Changes in accounting
principles, changes in accounting estimates, restatements "
to asset retirement obligations related to the decommissioning of specified nuclear power plants has changed,
constituting a change in accounting principles that are difficult to distinguish from changes in accounting estimates.
(3) Number of outstanding shares
1 Number of outstanding shares at year end (including treasury stock):
FY2013 ended March 2014 474,183,951 shares FY2012 ended March 2013 474,183,951 shares
2 Number of treasury stock at year end
FY2013 ended March 2014 1,214,196 shares FY2012 ended March 2013 1,246,883 shares
3 Average number of shares outstanding during the period
FY2013 ended March 2014 472,945,729 shares FY2012 ended March 2013 472,941,554 shares
(Note) For the number of shares applied in calculation of consolidated net earnings per share, see page 26 "(5)Notes on
Consolidated Financial Statesments Per share data."
(Reference) Outline of Non-consolidated Financial Results
1. Non-consolidated Financial Results for FY2013 (April 1, 2013 to March 31, 2014)
(1) Non-Consolidated Operational Results
(% show s the changes from the previous FY)
(Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%)
FY2013 ended March 31, 2014 1,682,994 16.2 -112,237 ― -137,267 ―
FY2012 ended March 31, 2013 1,448,876 3.0 -305,812 ― -339,959 ―
(Unit: million yen) (%)
FY2013 ended March 31, 2014 -90,939 ―
FY2012 ended March 31, 2013 -338,050 ―
(2) Non-Consolidated Financial Position
(Reference) Shareholders' equity: FY2013 341,405 million yen FY2012 429,287 million yen
2. Non-consolidated Forecast for FY2014 ending March 2015 (April 1, 2014 to March 31, 2015)
(% show s the changes from the same financial periods of the previous year)
(See page 5 "(1)Analysis regarding business performance Forecast for FY2014" of Attached Material)
resumption of operations of reactors of our nuclear power stations.
We will promptly inform you of our forecasts when it is possible for us to make them.
(Note) Fiscal 2014 full-year performance outlook for operating income, ordinary income and net income is currently not able to be――
estimated due to the difficult situations that we can not calculate fuel costs rationally under uncertain prospects of the
(Unit: yen)
-192.17
-714.33
(Unit: yen)
Net income Net earnings per share
Fully-diluted net earnings
per share
Sales Operating income Ordinary income
From the 3rd quarter of the fiscal year ending March 31, 2014, the method used for stating costs for assets corresponding
Total assets Net assets
Shareholders'
equity ratio
Net assets
per share
(Unit: million yen) (Unit: million yen) (%) (Unit: yen)
FY2013 ended March 31, 2014 4,218,037 341,405 8.1 721.45
FY2012 ended March 31, 2013 4,201,704 429,287 10.2 907.13
Net earnings per share
(Unit: million yen) (% ) (Unit: million yen) (% ) (Unit: million yen) (% ) (Unit: million yen) (% ) (Unit: yen)
2Q 890,000 8.7 ― ― ― ― ― ― ―
Year-end 1,785,000 6.1 ― ― ― ― ― ― ―
Operating income Ordinaly income Net income
Sales
*Notes on implementation status of quarterly review procedure
This financial results overview is not the object of quarterly review procedure based on Financial Instruments and Exchange Act,
and at the time of this disclosure, quarterly review procedure of quarterly consolidated financial reports based on Financial Instruments and Exchange Act is under implementation.
*Notes on the proper use of the forecasts
Looking-forward statements are based on information available at the date of the release of this document. Due to various factors, the actual result may differ from these statements.
We will post supplementary materials for quartely financial results on our website.
- 1 -
○しろまる Table of Contents of Attached Material
1. Analysis Regarding Business Performance and Financial Condition ・・・・・・・・・・・・ 2
(1) Analysis regarding business performance・・・・・・・・・・・・・・・・・・・・・・ 2
(2) Analysis regarding financial condition・・・・・・・・・・・・・・・・・・・・・・・ 6
(3) Basic policy regarding the appropriation of profits and dividends for FY2013 and FY2014・・ 8
(4) Business risks factors ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9
2. Management Policy ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 11
3. Consolidated Financial Statements ・・・・・・・・・・・・・・・・・・・・・・・・・ 13
(1) Consolidated Balance Sheets ・・・・・・・・・・・・・・・・・・・・・・・・・ 13
(2) Consolidated Income Statements and Consolidated Comprehensive Income Statements・・・ 15
(3) Consolidated Statements of Changes in Shareholders’ Equity ・・・・・・・・・・・・・ 17
(4) Consolidated Statements of Cash Flows ・・・・・・・・・・・・・・・・・・・・・ 19
(5) Notes on Consolidated Financial Statements ・・・・・・・・・・・・・・・・・・・ 21
(Note on the premise of going concern)・・・・・・・・・・・・・・・・・・・・・・ 21
(Changes in accounting principles, changes in accounting estimates, restatements)・・・・・ 21
(Additional information) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22
(Tax effect accounting)・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22
(Segment information, etc) ・・・・・・・・・・・・・・・・・・・・・・・・・・ 23
(Per share data) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 26
(Significant post-balance sheet event) ・・・・・・・・・・・・・・・・・・・・・・ 27
4. Non-consolidated Financial Statements ・・・・・・・・・・・・・・・・・・・・・・・ 29
(1) Balance Sheets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 29
(2) Income Statements・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 31
(3) Statements of Changes in Shareholders’ Equity・・・・・・・・・・・・・・・・・・・ 33
5. Other・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 37
Income and Expenditure (Non-consolidated)・・・・・・・・・・・・・・・・・・・・ 37
Post of an extraordinary gain ・・・・・・・・・・・・・・・・・・・・・・・・・ 38
Please note that this purports to be an accurate and complete translation of the original Japanese version
prepared for the convenience of our English-speaking audience. However, in the case of any
discrepancy between the translation and the Japanese original, the latter shall prevail.
- 2 -
1. Analysis Regarding Business Performance and Financial Condition
(1) Analysis regarding business performance
1 Business performance of FY2013
The Japanese economy in this period (April, 2013-March, 2014) has recovering gently mainly in domestic
demand due to the background including the government’s economic policies, a rise of stock prices and an
increased sales before the sales tax up. Also the economy in Kyushu has recovering as a whole, for example,
exports have increased gradually and improved employment and income environment led consumer spending
railed.
The Kyushu Electric Power Group has faced an ongoing situation of very tight supply and demand and rapid
change in our financial status with the shutdown of all our nuclear power stations, and we had no choice but to
ask our customers to share in that burden by increasing our fees from April,2013. However, our balance sheet
remains weak due to the longer-than-expected shutdown of our nuclear power stations. For this reason, in
addition to our commitment to achieve greater efficiency in operations in exchange for the rate hike, we have
made every effort group-wide to achieve greater efficiency, including temporarily deferring repair and
miscellaneous costs and other short-term measures.
A. Revenue and expenditure
Under these economic conditions, on the revenue side, consolidated sales (operating revenues) increased by
15.9% to 1,791円.1 billion compared with FY2012 and the ordinary revenues increased by 15.8% to 1,806円.7
billion affected by the business performances in electricity business as lighting and power revenue increased
mainly due to the increase in charge unit price with the effect of electricity rate increase and fuel cost adjustment
system and grant based on a feed-in tariff power purchase and sale system of renewable energy.
On the expenditure side, ordinary expenses increased by 2.5% to 1,938円.1 billion affected by the business
performances in electricity business as thermal fuel costs increased due to the influence of a weaker yen and costs
for power purchases from renewable energy sources increased while we made cost reduction efforts such as
maintenance cost efficiency and reduction of labor cost.
As a result, the ordinary loss for FY2013 reduced degree of loss by 199円.7 billion compared with FY2012 to
131円.4 billion.
The net loss for FY2013 reduced degree of loss by 236円.3 billion compared with FY2012 to 96円.0billion
according to the post of 53円.4 billion as an extraordinary gain occurred by sales of real estate and securities as a
part of management rationalization and setting of retirement benefits trust.
- 3 -
Operating results for each of our business segments (before eliminating internal transactions) are as follows:
Operating Results (before eliminating internal transactions)
(Unit: 100 million yen, %)
FY2013 FY2012 Difference Change
(A) (B) (A-B) (A/B)
Sales 16,348 14,083 2,264 116.1
Electricity
Operating Income(Loss) -1,216 -3,126 1,910 −
Sales 1,710 1,606 103 106.5
Energy-related
Operating Income(Loss) 103 25 77 402.1
Sales 897 945 -48 94.9
IT &
Telecommunication Operating Income(Loss) 113 76 37 149.2
Sales 271 272 -1 99.5
Other
Operating Income(Loss) 32 24 7 131.8
(Note) Electricity includes the company’s business operations except incidental businesses
(a) Electricity Business
The sales revenue from electricity business increased by 16.1% to 1,634円.8 billion compared with FY2012
mainly due to an increase in lighting and power revenue because of the increase of charge unit price with the
effect of electricity rate increase and fuel cost adjustment system, and grant based on a feed-in tariff power
purchase and sale system of renewable energy. Operating loss for FY2013 reduced degree of loss by 191円.0
billion compared with FY2012 to 121円.6 billion due to the costs reduction efforts such as maintenance cost
efficiency and reduction of labor cost in spite of the increase in thermal fuel costs due to the influence of a weaker
yen and costs for power purchases from renewable energy sources.
(b) Energy-related Business
The sales revenues from energy-related business increased by 6.5% to 171円.0 billion compared with FY2012
mainly due to an increase in the number of repair works for electrical power station and new constructions of
mega-solar power plant and gas selling revenues. Operating income increased by 7円.7billion to 10円.3 billion.
(c) IT and Telecommunication Business
The sales revenues from IT and telecommunication business decreased by 5.1% to 89円.7 billion compared
with FY2012 mainly due to a decrease in information system development in spite of the revenue increase in
data transfer services for mobile phone companies. Operating income increased by 49.2% to 11円.3 billion mainly
due to the cost reduction efforts and a decrease in depreciation regarding business for rent of fiber-optic core
wire.
(d) Other Businesses
The sales revenues from other businesses was 27円.1 billion same level as FY2012. Operating income
increased by 31.8% to 3円.2 billion mainly due to a decrease in depreciation of rental buildings.
- 4 -
B. Sales and Supply overview
In FY2013, the demand for electric light, power for commercial operations and other general demands
increased by 1.1% from FY2012 due to an increase in the air-conditioning demand as the temperature from June
to October was higher than the previous year’s level. The power demand from large industrial customers was
same level as FY2012 due to the increase in production of Steel and Iron in spite of the decrease in production
of Electric Machinery and Non-ferrous Metals.
Consequently, the total electricity sales for FY2013 increased by 0.8% to 84.45 billion kWh compared with
FY2012.
Electricity Sales Volume
(Unit: million kWh, %)
FY2013 FY2012 Difference Change
(A) (B) (A-B) (A/B)
Lighting 29,792 29,509 283 101.0
Power 5,291 5,204 87 101.7
Demand other
than those under
Liberalization
Total 35,083 34,713 370 101.1
Demand under Liberalization 49,367 49,074 293 100.6
Electricity Sales Total 84,450 83,787 663 100.8
Customers other than
large-scale industrial
60,827 60,173 654 101.1
Figures are
included above Large-scale industrial
customers
23,623 23,614 9 100.0
On the supply side, under the ongoing shutdown of the operations of our nuclear power stations, we have
provided supply of electricity to our customers by increasing electricity received from other companies while
hydro decreased due to the drought.
Generated and Received Electricity
(Note) "New Energy" includes Solar, Wind, Biomass, Waste and Geothermal.
FY2013 FY2012 Difference Change
(A) (B) (A-B) (A/B)
Hydro 3,773 4,704 -931 80.2
(Water flow rate) (86.7) (112.8) (-26.1)
Thermal 62,503 61,221 1,282 102.1
Nuclear − − − −
(Utilization rate) (−) (−) (−)
New Energy 1,391 1,368 23 101.7Ownfacilities
Subtotal 67,667 67,293 374 100.6
From other companies
(New Energy [included above])
23,147
(3,020)
21,248
(1,957)
1,899
(1,063)
108.9
(154.3)
Interchange 1,046 2,402 -1,356 43.5
For pumping -576 -641 65 89.8
Total 91,284 90,302 982 101.1
(Unit: million kWh, %)
- 5 -
2 Forecast for FY2014
Our sales for FY2014 expect to increase due to the increase of surcharge and grant based on a feed-in tariff
power purchase and sale system of renewable energy and charge unit price with the effect of fuel cost adjustment
system in spite of the decrease in electricity sales volume.
Fiscal 2014 full-year incomes are currently not able to be estimated due to the difficult situations that we can
not calculate fuel costs rationally under uncertain prospects of the resumption of operations of reactors of our
nuclear power stations.
We will promptly inform you of our forecasts when it is possible for us to make them.
Forecast for operational performance on FY2014
(Unit: 100 million yen)
Consolidated Non-consolidated
2Q Year-end 2Q Year-end
Sales
9,400
[108.3%]
18,950
[105.8%]
8,900
[108.7%]
17,850
[106.1%]
Operating income − − − −
Ordinary income − − − −
Net income − − − −
(Note) the percentage figures in [ ] show the comparison from the previous year
Sensitivity factors
2Q Year-end
Electricity sales volume
41.7billion kWh
[98.6%]
83.7 billion kWh
[99.1%]
Crude oil (CIF) price 110 $/b
Exchange rate \ 105 /$
(Note) the percentage figures in [ ] show the comparison from the previous year
- 6 -
(2) Analysis regarding financial condition
1 Analysis regarding consolidated assets, debt, shareholders’ equity and cash flow overview
A. Consolidated assets, debt, and shareholders’ equity overview
Consolidated assets increased by 23円.3 to 4,549円.8 billion compared with the end of FY2012 mainly due to the
increase of construction in progress with countermeasure constructions of nuclear power stations to improve
safety and accounts receivable in spite of the decrease with progress of depreciation and contribution of a part of
holding stocks for setting of retirement benefits trust.
Consolidated liabilities increased by 86円.9 billion to 4,055円.6 billion mainly due to an increase in
interest-bearing debts in spite of the decrease in accordance with the adoption of Accounting Standard for
Retirement Benefits (revised on May, 2012) and setting of retirement benefits trust. The interest-bearing debts
increased by 205円.9 billion to 3,116円.7 billion.
Consolidated shareholders’ equity decreased by 63円.5 billion to 494円.2 billion mainly due to the post of net loss
for this fiscal year in spite of the decrease in accordance with adoption of Accounting Standard for Retirement
Benefits. Consequently the shareholders’ equity ratio went down to 10.5%.
B. Consolidated cash flow overview
Cash flow from operating activities decreased by 129円.2 billion to 5円.9 billion from FY2012 mainly due to an
increase in thermal fuel costs and costs for power purchases while electricity sales revenue increased in electricity
business and cost reduction efforts decreased expenses.
Cash outflow from investing activities increased by 8円.4 billion to 184円.9 billion from FY2012 mainly due to
the increased expenses with countermeasure constructions of nuclear power stations to enhance safety while
revenue increased with sales of real estate and securities as a part of management rationalization.
Cash inflow from financing activities decreased by 215円.8 billion to 196円.3 billion.
As a result, the balance of cash and cash equivalents at the end of FY2013 increased by 5円.5 billion to 384円.7
billion compared with the end of FY2012.
- 7 -
2 Consolidated cash flow indication
FY2009 FY2010 FY2011 FY2012 FY2013
Shareholders’ equity ratio (%) 26.4 25.4 19.7 11.9 10.5
Shareholders’ equity ratio at market value (%) 23.7 18.4 12.6 10.2 13.1
Interest-bearing debt / Cash flow ratio 5.7 6.9 146.9 − −
Interest coverage ratio 9.9 8.7 0.5 − −
(Note)
Shareholders’ equity ratio = Shareholders’ equity / Total assets
Shareholders’ equity ratio at market value = Total market value of shares / Total assets
Interest-bearing debt / Cash flow ratio = Interest-bearing debt / Cash flow from operating activities
Interest coverage ratio = Cash flow from operating activities / Interest payment
*Each index is calculated based on the consolidated financial data
*Total market value of shares is calculated as closing stock price at the end of fiscal year multiplied by the number of
shares outstanding (after excluding treasury stocks) at the end of fiscal year
*Cash flow from operating activities and interest payment are calculated based on consolidated cash flow statements.
*Interest-bearing debt includes corporate debt and long-term debt (both includes those due within a year), short-term
debt and commercial papers. The amount of corporate debt used here is not the book value but the face value (par).
* Interest-bearing debt / Cash flow ratio and Interest coverage ratio are not written because of cash outflow from
operating activities for FY2012 and FY2013.
- 8 -
(3) Basic policy regarding the appropriation of profits and dividends for FY2013 and FY2014
We have based our policy regarding the appropriation of profits on expanding shareholders’ interest in medium
to long-term perspective while maintaining the consecutive dividends.
However net loss for FY2013 was 90円.9 billion because of the large increase in thermal fuel costs due to the
shutdown of the operations of reactors of our nuclear power stations.
Considering current extremely severe business environment, we have decided to pay out no year-end dividend
for FY2013 as well as interim.
We regret to plan no interim dividend for FY 2014 because extremely severe performance is continued. We are
very sorry for shareholders and apologize deeply. Kyushu Electric Power will announce year-end dividend for
FY2014 as soon as forecasts for financial results become possible in the future.
- 9 -
(4) 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. 1Changes in systems affecting the electricity business
Discussions towards the implementation of Electricity System Reform (the liberalization of the retail power
sector as a whole in order to give customers a greater range of choice, the invigoration of the wholesale power
market in order to stimulate a competitive environment, and the realization of broader coverage and greater
neutrality in the transmission and distribution sector) are proceeding.
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. 2Status of environment surrounding nuclear power
We still believe that nuclear power generation is important in terms of energy security and global warming
concerns. Based on the lessons learned from the accident at the Fukushima Daiichi Nuclear Power Station, we will
strictly comply with the New Nuclear Regulatory Requirements and continue our voluntary efforts in order to
achieve the world’s highest safety standards. 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, and our judgment regarding the realizability of our deferred tax assets
resulting from the continuation of these cost burdens.
3Fluctuations in electricity sales volume
Electricity sales volume in the electricity business fluctuates according to factors such as economic trends,
temperature changes, the spread of residential solar power systems, and trends in regulations and institutional
reforms relating to energy conservation. As a result, changes in these factors could have an impact on the Group's
performance.
4Fuel 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. 5Nuclear Fuel Cycle Costs
The uncertainties in the long-term prospects of nuclear fuel cycle operations pose a risk, but operator risk is
being reduced through measures proposed by the Japanese government. However, the Group’s performance could
be affected by discussion trends related to nuclear fuel cycle policy and increased costs based on revised cost
estimates for future expenses.
- 10 -
6Cost 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.
7Businesses Other than Electricity
The Group is enhancing its revenue basis by utilizing the group’s management resources and steadily
developing new business area beyond electricity business. In the business operation, we put emphasis on the
profitability and work to improve efficiency while pursuing the growth. In case securing the planned profits
cannot be achieved due to the worsening business conditions, the Group’s performance may be affected.
8Interest Rate Fluctuations
The Group’s balance of interest-bearing debt as of the end of March 2014 is 3,116円.7 billion, which accounts
for 69% 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.
9Leakage of Information
The Group has established strict internal frameworks to manage in-house information and personal information,
which Group companies hold, to ensure information security. Additionally, we have implemented thorough
information management by establishing internal policies and guidelines on handling information as well as
familiarizing employees with the handling procedures. However, in case of the leaking of in-house information
and personal information, the Group’s performance may be affected.
10Natural 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.
11Compliance
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.
- 11 -
2. Management Policy
Based on Kyushu Electric Power’s Mission, which incorporates our brand message, "Enlighten Our Future," we
proceed in our business activities as a responsible power utility with the mission of providing our customers with a
stable supply of electricity and energy.
Unfortunately, the accident at the Fukushima Daiichi Nuclear Power Station has resulted in a major loss of
confidence in power companies. At Kyushu Electric Power, we have faced an ongoing situation of very tight supply
and demand and rapid change in our financial status with the shutdown of all our nuclear power stations, and we had
no choice but to ask our customers to share in that burden by increasing our fees from April.2013, at the same time as
working to achieve maximum efficiency.
However, we still face tight supply and demand situation and our balance sheet remains weak due to the
longer-than-expected shutdown of our nuclear power stations.
To overcome this difficult situation, we will make every effort to further enhance the safety of our nuclear power
stations and take all possible measures to achieve greater efficiency in our business operations and improve the
balance between supply and demand. We will also earnestly listen to our customers’ opinions regarding the safety of
nuclear power generation and power rates in order to gain the public's trust.
Meanwhile, we will establish a well-balanced power supply system and respond appropriately to the scheduled
reforms of the power system, including full liberalization of retail sales of electricity, in line with the new Basic
Energy Plan approved by the Cabinet this April.
In these circumstances, on the basis of Midterm Management Policy (FY2013~FY2015), we will be putting the
following measures into effect.
○しろまる In order to provide support for our customers’ daily lives and business activities and for the regional community
more generally, and to achieve sustainable development together with all our stakeholders, we will seek complete
efficiency in all of our operations.
As our balance sheet remains weak, the Kyushu Electric Group will work as a single entity to manage costs and
realize comprehensive efficiency.
More specifically, we plan to manage power supply and demand economically by giving priority to operating
highly efficient thermal power stations and procuring power cheaply through the power market in order to reduce
costs related to supply and demand.
We will also control capital investment and maintenance and other costs by giving due consideration to safety,
compliance with law and stable power supply. For this purpose, we will reduce costs for procuring material and
equipment and will continuously improve the efficiency of overall business operations with the help of external
experts as well as temporarily reduce, suspend or postpone capital investment.
In addition, we will work together with our business partners to promote efficiency and maintain and improve our
technological capacity, and strive to enhance the management culture of our Group companies.
By this means, we will realize a stable structure of income and expenditure, and provide value to all of our
stakeholders, in particular our customers, shareholders and investors.
Through these efforts, we will realize a stable structure of income and expenditure to meet environmental changes
firmly, and provide value to all of our stakeholders.
- 12 -
○しろまる We will provide our customers with a stable supply of high quality power in an environment undergoing significant
changes.
Against the background of a supply and demand situation which continues to be tight under the ongoing shutdown
of the operations of our nuclear power stations, we will work to implement a full range of both supply and demand
side measures in order to realize a stable supply of power.
We proceed with voluntary initiatives in order to further increase safety, basing ourselves firmly on the lessons
learned from the accident at the Fukushima Daiichi Nuclear Power Station, in addition to complying precisely with
New Nuclear Regulatory Requirements. In July, 2013, we applied for permission for reactor installment licence of
Sendai’s No. 1 and 2 reactors and Genkai’s No. 3 and 4 reactors. In March, 2014, Sendai’s two reactors were selected
as plants for which a draft report on conformity with the New Nuclear Regulatory Requirements in applying for
permission for reactor installment license is being prepared. We will continue our group-wide efforts to have our
reactors—including Genkai’s No. 3 and 4 reactors—pass the government’s conformity review toward early restart. At
the same time, we are making every effort and taking various opportunities to gain support from local residents for
restarting our reactors, including explaining to them all that we're doing to improve the safety of reactors and prevent
nuclear disasters.
As interim measures to ensure a continuing supply of power, we will work to comprehensively guarantee safe and
stable operation of our power facilities, in addition to flexibly ensuring supply capacity, for example by power
purchase from other companies and making use of the power market depending on trends in supply and demand.
In addition, as the efforts towards the securing of power sources that will be competitive against the background of
power system reforms, we will purchase thermal power by biddings in mainland and in remote island (Tsushima) in
FY2014 and we ourselves will apply for the bidding by developing Matsuura unit2 (Matsuura-shi, Nagasaki
Prefecture) and Toyotama unit 6(Tsushima-shi, Nagasaki Prefecture) respectively.
We will develop renewable energy sources such as solar generation, and at the same time respond appropriately to
significantly increasing requests for interconnection to our power system, seeking to maintain the quality of our
power supply.
On the demand side, we will curb peak demand and promote energy conservation by proposing efficient energy use
to our customers as well as disclosing supply and demand information in a timely manner to encourage them to
conserve electricity as much as possible.
○しろまる We will proceed with measures designed to make us more open and to help us win the trust of the public
The trust of our stakeholders is the foundation of our business operations, and in order to win that trust, in addition
to working to reflect the opinions of our stakeholders in our business procedures, we will make comprehensive
efforts in the area of CSR management, for example by further increasing the transparency of our business activities.
Specifically, in addition to providing accurate information to the public concerning the power industry and quickly
and precisely making our own initiatives known, we will listen sincerely to the voices of our customers and all of our
stakeholders, and appropriately reflect their opinions and desires in our business activities.
Further, we will be thorough in instituting appropriate business procedures that incorporate the objectives and
specialized viewpoints of experts outside the company and other qualified individuals, at the same time as working to
increase transparency and to contribute to society with consideration of our customers’ perspective.
Striving to become a strong and flexible company that is trusted and actively chosen by its customers, Kyushu
Electric Power will work to change itself by increasing its sensitivity to changes in attitudes among its customers and
society more generally towards power companies, and challenging itself to respond to future social needs on the basis
of new concepts. - 13 -
3. Consolidated Financial Statements
(1) Consolidated Balance Sheets
Assets
Fixed Assets 3,883,590 3,847,207
Utility property, plant and equipment 2,414,522 2,309,750
Hydro 320,052 302,075
Thermal 183,858 169,393
Nuclear 232,756 211,244
Internal combustion 18,918 18,229
New energy 13,494 13,587
Transmission 667,527 639,755
Transformation 228,372 216,234
Distribution 614,503 614,425
General 128,380 119,022
Other 6,659 5,782
Other fixed assets 305,774 301,642
Construction in progress 220,817 329,749
Construction and retirement in progress 220,817 329,749
Nuclear fuel 278,941 281,522
Loaded nuclear fuel 84,103 84,127
Nuclear fuel in processing 194,837 197,395
Investments and other assets 663,534 624,541
Long-term investments 139,395 110,402
Reserve for reprocessing of irradiated nuclear fuel 240,155 261,058
Assets for retirement benefits - 239
Deferred tax assets 176,988 146,426
Other assets 107,978 107,336
Allowance for doubtful accounts -984 -922
Current Assets 642,922 702,644
Cash and cash equivalent 368,995 379,495
Trade notes and accounts receivable 123,311 163,392
Inventories at average cost 73,077 82,559
Deferred tax assets 31,203 33,137
Other current assets 47,279 44,916
Allowance for doubtful accounts -945 -855
Assets Total 4,526,513 4,549,852
(Unit: million yen)
As of March 31st, 2013 As of March 31st, 2014
- 14 -
Liabilities
Long-term Liabilities 3,298,927 3,429,837
Bonds 1,048,396 1,143,615
Long-term loans 1,469,610 1,653,360
Accrued retirement benefits 163,875 -
Reserve for reprocessing of irradiated nuclear fuel 321,276 306,219
Reserve for preparation of reprocessing of irradiated nuclear fuel 25,637 26,662
Liabilities for retirement benefits - 51,237
Asset retirement obligations 221,025 202,989
Deferred tax liabilities 5 248
Other fixed liabilities 49,100 45,503
Current Liabilities 665,478 625,782
Current portion of long-term debt 250,343 213,236
Short-term borrowings 119,532 118,171
Commercial paper 33,000 -
Notes and accounts payable 101,690 97,402
Income tax payable 17,201 20,351
Deferred tax liabilities 87 74
Other current liabilities 143,622 176,544
Reserves under the special law 4,308 -
Reserve for fluctuation in water levels 4,308 -
Liabilities Total 3,968,713 4,055,619
Net Assets
Shareholders’ Equity 518,207 440,966
Common stock 237,304 237,304
Additional paid-in capital 31,130 31,130
Retained earnings 252,145 174,871
Treasury stock -2,373 -2,340
Accumulated other comprehensive income 21,477 34,566
Unrealized gain on other securities 19,212 2,352
Gain on deferred hedge 3,747 4,235
Foreign currency translation adjustments -1,481 -450
Accumulated amount of adjustments related to retirement benefits - 28,429
Minority Interests 18,114 18,699
Net Assets Total 557,799 494,232
Liabilities and Net Assets Total 4,526,513 4,549,852
(Unit: million yen)
As of March 31st,2013 As of March 31st, 2014
- 15 -
(2) Consolidated Income Statements and Consolidated Comprehensive Income Statements
(Consolidated Income Statements) April 1, 2012-March 31, 2013 April 1, 2013-March 31, 2014
Operating Revenues 1,545,919 1,791,152
Electricity 1,406,218 1,633,023
Other 139,700 158,129
Operating Expenses 1,845,347 1,886,974
Electricity 1,715,262 1,746,890
Other 130,085 140,083
Operating Loss -299,428 -95,821
Other Revenues 14,184 15,550
Proceed from dividends 2,680 2,629
Proceed from interests 3,733 3,973
Equity in earnings of affiliates 2,015 3,152
Other 5,754 5,795
Other Expenses 45,961 51,178
Interest expenses 37,407 39,429
Other 8,554 11,749
Total Ordinary Revenues 1,560,103 1,806,703
Total Ordinary Expenses 1,891,309 1,938,152
Ordinary Loss -331,206 -131,449
3,092 -4,308
Provision of reserve fluctuation in water levels 3,092 -
Reversal of reserve fluctuation in water levels(Credit) - -4,308
Extraordinary gain - 53,408
Gain on sales of fixed assets - 26,173
Gain on sales of securities - 5,524
Gain on contributions of securities to retirement
benefit trust - 21,711
Loss before Income Taxes -334,298 -73,732
Income Taxes 3,674 5,131
Income Taxes-Deferred -5,869 15,655
Income Taxes Total -2,195 20,786
Loss before Minority Interests -332,102 ‐94,519
Minority Interests 367 1,576
Net Loss -332,470 -96,096
(Unit: million yen)
Provision or reversal of reserve fluctuation in water levels
- 16 -
(Consolidated Comprehensive Income Statements) April 1, 2012-March 31, 2013 April 1, 2013-March 31, 2014
Net Loss before Minority Interests -332,102 -94,519
Other comprehensive income
Unrealized gain on other securities 6,503 -16,670
Gain on deferred hedge 3,918 464
Foreign currency translation adjustments -709 -1,429
Adjustments related to retirement benefits ‐ ‐683
Equity in equity method companies 1,529 2,816
Total other comprehensive income 11,242 -15,503
Comprehensive income -320,860 -110,023
Comprehensive income related to
Comprehensive income related to parent company
shareholders -321,237 -111,780
Comprehensive income related to minority
interests 376 1,757
(Unit: million yen)
- 17 -
(3) Consolidated Statements of Changes in Shareholders’ Equity
Previous consolidated fiscal year (April 1, 2012 to March 31, 2013)
(Unit : million yen)
Shareholders’ Equity
Common stock
Additional
paid-in capital
Retained
earnings
Treasury stock
Shareholders’
Equity Total
Balance at the start ofFY237,304 31,133 594,080 -2,366 860,151
Changes during FY
Dividend Declared
-9,464 -9,464
Net Loss
-332,470 -332,470
Acquisition of
Treasury Stock
-10 -10
Disposal of
Treasury Stock
-2 3 1
Net changes during
FY other than
Shareholders’ Equity
Total changes duringFY― -2 -341,935 -6 -341,944
Balance at the end ofFY237,304 31,130 252,145 -2,373 518,207
(Unit : million yen)
Shareholders’ Equity
Unrealized gain
on other
securities
Gain on
deferred
hedge
Foreign
currency
translation
adjustment
Adjustments
related to
retirement
benefits
Total other
Comprehensive
income
Minority
Interests
Net Assets Total
Balance at the start ofFY12,331 -179 -1,907 ― 10,245 17,735 888,131
Changes during FY
Dividend Declared
-9,464
Net Loss
-332,470
Acquisition of
Treasury Stock-10Disposal of
Treasury Stock1Net changes during
FY other than
Shareholders’ Equity
6,880 3,927 425 ― 11,232 379 11,612
Total changes duringFY6,880 3,927 425 ― 11,232 379 -330,331
Balance at the end ofFY19,212 3,747 -1,481 ― 21,477 18,114 557,799
- 18 -
Current consolidated fiscal year (April 1, 2013 to March 31, 2014)
(Unit : million yen)
Shareholders’ Equity
Common stock
Additional
paid-in capital
Retained
earnings
Treasury stock
Shareholders’
Equity Total
Balance at the start ofFY237,304 31,130 252,145 -2,373 518,207
Cumulative effects of
Changes in
accounting policies
18,822 18,822
Restated balance
237,304 31,130 270,967 -2,373 537,030
Changes during FY
Dividend Declared―Net Loss
-96,096 -96,096
Acquisition of
Treasury Stock
-18 -18
Disposal of
Treasury Stock
― 51 51
Net changes during
FY other than
Shareholders’ Equity
Total changes duringFY― ― -96,096 33 -96,063
Balance at the end ofFY237,304 31,130 174,871 -2,340 440,966
(Unit : million yen)
Shareholders’ Equity
Unrealized gain
on other
securities
Gain on
deferred
hedge
Foreign
currency
translation
adjustment
Adjustments
related to
retirement
benefits
Total other
Comprehensive
income
Minority
Interests
Net Assets Total
Balance at the start ofFY19,212 3,747 -1,481 ― 21,477 18,114 557,799
Cumulative effects of
Changes in
accounting policies
28,773 28,773 -291 47,304
Restated balance
19,212 3,747 -1,481 28,773 50,250 17,822 605,103
Changes during FY
Dividend Declared―Net Loss
-96,096
Acquisition of
Treasury Stock-18Disposal of
Treasury Stock51Net changes during
FY other than
Shareholders’ Equity
-16,859 488 1,031 -344 -15,684 876 -14,807
Total changes duringFY-16,859 488 1,031 -344 -15,864 876 -110,871
Balance at the end ofFY2,352 4,235 -450 28,429 34,566 18,699 494,232
- 19 -
(4) Consolidated Statements of Cash Flows
April 1, 2012-
March 31, 2013
April 1, 2013-
March 31, 2014
Operating Activities
Loss before income taxes -334,298 -73,732
Depreciation and amortization 212,735 202,856
Decommissioning cost of nuclear power plants 2,627 1,978
Loss on disposal of property, plant and equipment 8,338 6,438
Increase(decrease) in reserve for retirement benefits 10,024 -
Increase(decrease) in liability for retirement benefits - -10,577
Provision for reserve for reprocessing of used fuel -12,724 -15,056
Provision for preparation for reprocessing of irradiated nuclear fuel 986 1,025
Increase(decrease) in reserve for fluctuation in water levels 3,092 -4,308
Interest revenue and dividends received -6,414 -6,602
Interest expense 37,407 39,429
Equity in net earnings under the equity method -2,015 -3,152
Gain on sales of fixed assets - -26,173
Gain on sales of securities - -5,524
Gain on contributions of securities to retirement benefit trust - -21,711
Increase in fund for reprocessing of irradiated nuclear fuel -19,862 -20,902
Increase in accounts receivable -8,284 -40,493
Increase in inventories, principally fuel, at average cost 4,830 -9,481
Increase in accounts payable 7,567 -5,534
Other -4,586 22,031
Sub Total -100,575 30,508
Receipt of interest and cash dividends 7,230 6,860
Interest paid -37,809 -39,326
Income tax paid -3,976 -3,965
Net cash provided by operating activities -135,130 -5,922
Cash Flows from Investing Activities
Purchases of property, plant and equipment -183,922 -236,378
Proceeds from sales of property, plant and equipment 2,403 27,591
Payment for investments and other -442 -2,966
Proceeds for recoveries from investments and other 3,640 14,845
Other 1,774 11,943
Net cash used in investing activities -176,546 -184,963
(Unit: million yen)
- 20 -
April 1, 2012-
March 31, 2013
April 1, 2013-
March 31, 2014
Cash Flows from Financing Activities
Proceeds from issuance of bonds 139,736 194,488
Redemption of bonds -120,000 -163,842
Proceeds from long-term loans 439,967 280,344
Repayment of long-term loans -69,296 -76,447
Net increase (decrease) in short-term borrowings 1,531 -1,011
Net changes in commercial paper 33,000 -33,000
Other -12,690 -4,134
Net cash used in financing activities 412,248 196,397
Effect of exchange rate changes on cash and cash equivalents 690 51
Changes in cash and cash equivalents 101,262 5,561
Cash and cash equivalents at beginning of the year 277,945 379,207
Cash and cash equivalents at end the of the year 379,207 384,769
(Unit: million yen)
- 21 -
(5) Notes on Consolidated Financial Statements
(Note on the premise of going concern)N/A(Changes in accounting principles, changes in accounting estimates, restatements)
[Changes in accounting principles]
Adoption of Accounting Standard for Retirement Benefits
Accounting Standard for Retirement Benefits (ASBJ Statement No.26 on May 17, 2012) and Guidance on
Accounting Standard for Retirement Benefits (ASBJ Guidance No.25 on May 17, 2012) are applicable from the
consolidated fiscal year beginning on April 1, 2013. In line with this, the Company adopted the Standard and the
Guidance from the 1st quarter of the current consolidated fiscal year, changing to the method of recognizing the amount
calculated by deducting plan assets from retirement benefit obligations as a liability for retirement benefits and
recognizing actuarial gains and losses and past service costs that are yet to be recognized in profit or loss in the liability
for retirement benefits. In addition, the Company reviewed the method for calculating retirement benefit obligations and
current service years, and changed the method of attributing expected benefit to periods from a straight-line basis to a
benefit formula basis.
Regarding the application of the Standard and the Guideline for Retirement Benefits, in accordance with the
transitional treatment stipulated in paragraph 37 of the Accounting Standard for Retirement Benefits, the effect
associated with recognizing the amount calculated by deducting plan assets from retirement benefit obligations as a
liability for retirement benefits is added to or deducted from the accumulated amount of adjustments related to
retirement benefits in the accumulated other comprehensive income at the beginning of the 3rd quarter of the current
consolidated fiscal year. In addition, the effect of changing the method used to calculate liability for retirement benefits
and past service costs is added to or deducted from retained earnings.
As a result, accumulated other comprehensive income and retained earnings at the beginning of the current
consolidated fiscal year increased by 28,773円 million and 18,822円 million, respectively. Furthermore, operating loss,
ordinary loss, and loss before income taxes for FY2013 each decreased by 512円 million.
[Changes in accounting estimates and changes in accounting principles that are difficult to distinguish from
changes in accounting estimates]
Changes in methods used for stating costs for assets corresponding to asset retirement obligations and calculating the
amount of asset retirement obligations related to the decommissioning of specified nuclear power plants
In terms of the method used for stating costs for assets corresponding to asset retirement obligations related to the
decommissioning of specified nuclear power plants contained in tangible fixed assets, with the application of Article 8
of the Guidance on Accounting Standard for Asset Retirement Obligations (ASBJ Guidance No.21, March 31, 2008)
and based on the stipulations of the Ministry Ordinance Relating to Reserves for Decommissioning of Nuclear Power
Plants (Ministry of International Trade and Industry Ordinance No. 30, 1989), a method was used in which the total
estimated costs for nuclear power plant decommissioning in proportion to the amount of power produced throughout
the expected operating period of the power-generating facilities was stated as the cost. However, with the revision of
the Ministry Ordinance Relating to Reserves for Decommissioning of Nuclear Power Plants following the enforcement
of the Ministry Ordinance Relating to the Partial Revision of Electric Business Accounting Regulations (Ordinance of
the Ministry of Economy, Trade and Industry No. 52, 2013) on October 1, 2013, the method used for stating costs is to
be based on the straight-line method throughout a period wherein the expected safe storage period has been added to
the expected operating period. Note that because this change constitutes a change in the method for allocating costs
among tangible fixed assets and a change in accounting principles difficult to distinguish from a change in accounting
estimates, it will not be applied retrospectively.
As a result, the operating loss, ordinary loss, and loss before income taxes for FY2013 each increased by 4,967円
million compared to the application of the method that was used in the past.
- 22 -
In addition, in terms of the expected period for expenditures used in calculating the amount of asset retirement
obligations related to the decommissioning of specified nuclear power plants, the period after the start of operations
subtracted from the expected operating period of the power-generating facilities for each unit at the nuclear power
plants to serve as the basis for the calculation of expected total generated energy was used as the number of remaining
years. However, with the revision of the Ministry Ordinance Relating to Reserves for Decommissioning of Nuclear
Power Plants, from the 3rd quarter of the fiscal year ending March 31, 2014 (consolidated), the number of remaining
years has been changed to the period after the start of operations subtracted from a period to which the expected safe
storage period has been added to the expected operating period.
As a result, asset retirement obligations and assets corresponding to asset retirement obligations for FY2013 each
decreased by 19,952円 million compared to the application of the method that was used in the past.
(Additional information)
[Changes to the Electric Business Accounting Regulations involving nuclear power plants]
With the revision of the Electric Business Accounting Regulations following the enforcement of the Ministry
Ordinance Relating to the Partial Revision of Electric Business Accounting Regulations (Ordinance of the Ministry of
Economy, Trade and Industry No. 52, 2013; hereinafter "the Revised Ordinance") on October 1, 2013, fixed assets
required for reactor decommissioning and fixed assets that require maintenance and management even after reactors
have been decommissioned are to be included as nuclear power plant facilities. Retroactive application will not be
conducted in accordance with the stipulations of the Revised Ordinance as a result of this change.
Note that this change will not have a material impact.
(Tax effect accounting)
[Correction of the amounts of deferred tax assets and liabilities in response to the change in the income tax rate]
As the Act for Partial Revision of the Income Tax Act was officially announced on March 31, 2014 (Act No. 10 of
2014), the special corporate tax for post-disaster reconstruction is no longer imposed on firms from the consolidated
fiscal year starting on or after April 1, 2014. With this abolishment of this tax, the effective statutory tax rate used for
calculating deferred tax assets and liabilities for the current consolidated fiscal year has been changed from 33.2 to
30.7 % with respect to temporary differences expected to reverse in the period from April 1, 2014 to March 31, 2015.
As a result, our deferred tax assets decreased by 2,537円 million while our deferred income taxes and other
comprehensive income increased by 3,058円 million and 516円 million, respectively.
On the other hand, our deferred tax liabilities decreased only slightly.
- 23 -
(Segment information, etc)
1. Segment information
(1) Overview of reporting segments
The Company's reporting segments are based on the units that compose our Company for which separate
financial information is available. The segments are subject to regular review by the Board of Directors to evaluate
performance.
The Company is composed of four reporting segments, classified in consideration of the types of products and
business activities: the Electricity Business, the Energy-related Business, the IT/Telecommunication Business, and
Other Businesses.
The main products and business activities belonging to each reporting segment are described below.
Reporting segment Main products and business activities
Electricity Supply of electricity
Energy-related
Receipt, storage, vaporization, delivery and sales of LNG, manufacturing and sales of electric
machinery, construction, maintenance and repair of electric power facilities, maintenance and repair
of power generation facilities, manufacturing and sales of concrete poles, environmental preservation
activities around power generation facilities, consultation and planning of civil engineering and
construction
IT/Telecommunication
Fiber-optic cable and broadband service, manufacturing, sales, installation and maintenance of
telecommunication devices, development, operation and maintenance of information system
Other
Acquiring and owning of securities, loan to group companies, leasing and management of real estate,
contracted siting work
(2) Calculation method of amount of sales, income or loss, asset and other items by reporting segment
Accounting method of Reporting segment is the same to the Preparation of consolidated financial statements.
Reporting segment income is on operating income basis. Inter-segment sales is based on a market price.
(Adoption of Accounting Standard for Retirement Benefits)
As described in "Changes in accounting principles," we changed the calculation method for retirement benefit
obligations and service costs from the beginning of the current consolidated fiscal year. With this change, we also
changed the method for calculating retirement benefit obligations and service costs for the business segments in the
same way.
The effect of this application was a decrease of 540円 million segment loss for Electricity in comparison to the
previous method.
Effects of segment income or loss in reporting segment except electricity are minimal.
(Changes in methods used for stating costs for assets corresponding to asset retirement obligations of specified
nuclear power plants)
As described in "Changes in accounting principles that are difficult to distinguish from changes in accounting
estimates and changes in accounting estimates," we changed the method for recording costs of asset retirement
related to the abolishment of specified nuclear power facilities from the 3rd quarter third of the consolidated fiscal
year. With this change, we also changed the method for recording such costs for the electricity business segment in
the same way.
The effect of this application was increase of 4,967円 million segment loss for Electricity in comparison to the
previous method.
- 24 -
(3) Information regarding amount of sales, income or loss, asset and other items by reporting segment
Previous consolidated fiscal year (April 1, 2012 to March 31, 2013)
(Unit: million yen)
Electricity Energy-related
IT/Telecomm
unication
Other Total
Sales
Sales to outside customers 1,406,218 65,997 60,732 12,970 1,545,919 ‐ 1,545,919
Inter-segment sales 2,121 94,637 33,849 14,310 144,918 -144,918 ‐
Total 1,408,339 160,634 94,581 27,281 1,690,837 -144,918 1,545,919
Segment income (loss) -312,666 2,578 7,600 2,477 -300,010 581 -299,428
Segment asset 4,053,317 325,456 141,469 149,749 4,669,992 -143,479 4,526,513
Other items
Depreciation (including
amortization of nuclear fuel)
180,189 10,241 18,716 6,358 215,505 -2,770 212,735
Increase in tangible fixed assets
and intangible fixed assets
155,668 9,662 17,421 1,528 184,281 -2,985 181,295
Reportable segment
Adjusted
amount*1
Consolidated
financial
statements*2
*1 Adjusted amount of segment income (loss) of 581 million yen and adjusted amount of segment asset of -143,479
million yen are inter-segment elimination.
*2 Segment income (loss) is adjusted with operating loss within consolidated income statements.
Current consolidated fiscal year (April 1, 2013 to March 31, 2014)
(Unit: million yen)
*1 Adjusted amount of segment income (loss) of 818 million yen and adjusted amount of segment asset of -126,427
million yen are inter-segment elimination.
*2 Segment income (loss) is adjusted with operating loss within consolidated income statements.
Electricity
Energy-
related
IT/Telecomm
unication
Other Total
Sales
Sales to outside customers 1,633,023 78,150 65,841 14,137 1,791,152 ‐ 1,791,152
Inter-segment sales 1,805 92,856 23,907 13,004 131,573 -131,573 ‐
Total 1,634,829 171,007 89,748 27,142 1,922,726 -131,573 1,791,152
Segment income (loss) -121,615 10,367 11,342 3,266 -96,639 818 -95,821
Segment asset 4,057,306 345,698 136,493 136,780 4,676,279 -126,427 4,549,852
Other items
Depreciation (including
amortization of nuclear fuel)
172,341 9,210 18,432 5,550 205,534 -2,678 202,856
Increase in tangible fixed assets
and intangible fixed assets
216,181 23,927 19,808 1,438 261,355 -4,351 257,004
Reportable segment
Adjusted
amount*1
Consolidated
financial
statements*2
- 25 -
2. Related information
Previous consolidated fiscal year (April 1, 2012 to March 31, 2013) and Current consolidated fiscal year (April 1, 2013
to March 31, 2014)
(1) Information by product and service
Because similar information is disclosed in segment information, this information is omitted.
(2) Information by region
1 Sales
Because domestic sales to external customers account for over 90% of the sales stated in the Consolidated
Income Statements, this information is omitted.
2 Property, plant and equipment
Because property, plant and equipment located in Japan accounts for over 90% of the property, plant and
equipment stated in the Consolidated Balance Sheets, this information is not stated.
(3) Information by main customers
Because there are no customers that account for over 10% of sales stated in the Consolidated Income Statements
for sales to external customers, this information is omitted.
3. Information relating to impairment loss of fixed assets by reporting segment
Previous consolidated fiscal year (April 1, 2012 to March 31, 2013) and Current consolidated fiscal year (April 1,
2013 to March 31, 2014)
Because this information lacks materiality, it is omitted.
4. Information relating to goodwill amortization and unamortized balance by reporting segment
Previous consolidated fiscal year (April 1, 2012 to March 31, 2013) and Current consolidated fiscal year (April 1,
2013 to March 31, 2014)
Because this information lacks materiality, it is omitted.
5. Information relating to gains incurred from negative goodwill by reporting segment)
Previous consolidated fiscal year (April 1, 2012 to March 31, 2013)N/ACurrent consolidated fiscal year (April 1, 2013 to March 31, 2014)
Because this information lacks materiality, it is omitted.
- 26 -
(Per share data)
FY2012
(April 1, 2012-
March 31, 2013)
FY2013
(April 1, 2013-
March 31, 2014)
Shareholders’ equity per share (BPS) 1,141円.13 1,005円.42
Net loss per share (EPS) \-702.98 \-203.19
(Note) 1. Diluted EPS is abbreviated as there are no dilutive securities and it is net loss per share.
2. Basic data for computation of the per share data
(1) Shareholders’ equity per share
FY2012
(As of March 31, 2013)
FY2013
(As of March 31, 2014)
Shareholders’ equity total 557,799円 million 494,232円 million
Deductible from shareholders’ equity 18,114円 million 18,699円 million
(Minority interest) (18,114円 million) (18,699円 million)
Shareholders’ equity allocated to
common stock outstanding
539,684円 million 475,533円 million
Number of common stock outstanding at
the end of each fiscal year
472,937 thousand shares 472,970 thousand shares
(2) Net loss per share
FY2012
(April 1, 2012-
March 31, 2013)
FY2013
(April 1, 2013-
March 31, 2014)
Net loss \-332,470 million \-96,096 million
Amount not allocated to shareholders − −
Net loss allocated to common stock
outstanding
\-332,470 million \-96,096 million
Weighted average number of common
stock outstanding during each fiscal year
472,942 thousand shares 472,946 thousand shares
- 27 -
(Significant post-balance sheet event)
[Issuance of Preferred Shares]
Kyushu Electric Power Co., Inc. passed the resolution to issue 100 billion yen in Class A preferred shares ("the
Preferred Shares") by third party allotment to the Development Bank of Japan Inc. at the April 30, 2014 meeting of
the Board of Directors ("Meeting of the Board").
In addition, in order to carry out the Issuance of the Preferred Shares, Kyushu Electric Power at the Meeting of the
Board passed a resolution to refer a proposal to partially revise the Company’s articles of incorporation to accompany
the issuance of the Preferred Shares, along with a proposal to issue the Preferred Shares, to the regular general
meeting of shareholders to be held on June 26, 2014 ("the Regular General Meeting of Shareholders").
The issuance of the Preferred Shares is conditioned upon approval at the Regular General Meeting of Shareholders
of the above proposal to partially revise the articles of incorporation and proposal to issue the Preferred Shares.
1. Method of offering
Third party allotment to Development Bank of Japan Inc.
2. Class and number of new shares to be issued
1,000 shares of Class A preferred shares
3. Issue price
100,000,000円 per share
4. Total amount of the issue price
100,000,000,000円
5. Amount of paid-in capital and capital reserve to be increased
Amount of paid-in capital to be increased 50,000,000,000円 (50,000,000円 per share)
Amount of capital reserve to be increased 50,000,000,000円 (50,000,000円 per share)
6. Payment date (issue date)
August 1, 2014(scheduled)
7. Uses of funds
The funds to be procured as a result of issuance of the Preferred Shares is planned to be used entirely for
construction to meet new regulatory standards and other steps to enhance the safety of Kyushu Electric Power’s
nuclear power stations.
8. Characteristics of the Preferred Shares
The Preferred Shares provide no call provision or put option using common stock as consideration that will not
dilute common stock. These shares also provide any voting rights at the general meeting of shareholders.
The Preferred Shares will provide a call provision allowing the investor to acquire cash at Kyushu Electric Power’s
discretion as consideration the day after the payment date or thereafter. The Preferred Shares will provide the
Preferred Shares owner the right to demand acquisition of cash as consideration from Kyushu Electric Power the
day after the payment date or thereafter if the Preferred Shareholder undertakes the prescribed procedures, but the
exercise of this right by the Preferred Shareholder is limited by the Agreement regarding underwriting of the
Preferred Shares.
Annual preferred dividend for the Preferred Share is 3,500,000円 per share.
[Reduction of paid-in capital and capital reserves]
At the Board of Directors meeting held on April 30, 2014 ("Board Meeting"), in preparation for future flexible
capital management strategies, we resolved to reduce our paid-in capital and capital reserves and transfer the
reduced amounts to other additional paid-in capital, which constitutes distributable profits, upon the issue of class A
preferred stock mentioned in "Issue of preferred stock" above ("Preferred Stock") on condition that the issue comes
into effect.
- 28 -
1. Reduced capital
50,000,000,000円
As the issue of Preferred Stock increases our paid-in capital by 50,000円 million, the paid-in capital after the
effective date of the reduction will not fall below what the paid-in capital was before the effective date.
2. Reduced capital reserves
50,000,000,000円
As the issue of Preferred Stock increases our capital reserve by 50,000円 million, the capital reserve after the
effective date of the reduction will not fall below what the capital reserve was before the effective date.
3. Method of reducing the paid-in capital and capital reserves
We will reduce the paid-in capital and capital reserves upon the issuance of stock under paragraph 3 of Article
447 and paragraph 3 of Article 448 of the Companies Act as described above and then transfer the reduced
amounts to other additional paid-in capital.
4. Schedule
April 30, 2014 Resolution at the Board Meeting
June 30, 2014 Date of public notice of the reduction for creditors to raise objections
July 31, 2014 Deadline for creditors to raise objections
August 1, 2014 Effective date of the reduction
- 29 -
4. Non-consolidated Financial Statements
(1) Balance Sheets
(Unit: million yen)
As of March 31st, 2013 As of March 31st, 2014
Assets
3,662,870 3,625,432
2,449,405 2,341,919
Hydro power production facilities 323,129 305,026
Thermal power production facilities 185,834 171,135
Nuclear power production facilities 234,529 213,428
Internal combustion power production facilities 19,475 18,779
New energy power production facilities 13,766 13,854
Transmission facilities 675,042 646,720
Transformation facilities 232,561 220,264
Distribution facilities 627,512 625,675
General facilities 130,886 121,252
Suspended facilities 883 -
Facilities on loan 5,782 5,782
34,015 31,412
4,976 3,900
215,616 310,704
Construction in progress 213,515 308,768
Retirement in progress 2,100 1,935
278,941 281,522
Loaded nuclear fuel 84,103 84,127
Nuclear fuel in processing 194,837 197,395
679,914 655,973
Long-tern investments 126,661 98,546
Investments in subsidiaries and affiliated companies 150,372 149,634
Fund for reprocessing of irradiated nuclear fuel 240,155 261,058
Long-term prepaid expenses 4,890 5,935
Deferred tax assets 158,382 141,299
Allowance for doubtful accounts -548 -519
538,834 592,605
Cash and cash equivalents 324,155 334,476
Accounts receivable 98,816 132,598
Receivables 18,065 15,768
Inventories 59,839 67,306
Prepaid expenses 547 593
Receivables from subsidiaries and affiliated companies 3,493 5,087
Deferred tax assets 28,283 29,225
Other current assets 6,144 8,066
Allowance for doubtful accounts -512 -519
Assets Total 4,201,704 4,218,037
Property, Plant and Equipment
Utility property, plant and equipment
Current Assets
Investments and other assets
Nuclear Fuel
Incidental businesses property and equipment
Nonoperating property and equipment
Plant and equipment suspense account
- 30 -
(Unit: million yen)
As of March 31st, 2013 As of March 31st, 2014
Liabilities
Long-term Liabilities 3,155,145 3,314,453
Bonds 1,048,695 1,143,715
Long-term loans 1,373,256 1,545,480
Long-term accrued liabilities 7,964 7,605
Long-term lease liabilities 2,494 2,121
Long-term liabilities to affiliates 1,664 1,600
Liability for employees' retirement benefits 147,341 74,526
Reserve for reprocessing of irradiated nuclear fuel 321,276 306,219
Reserve for preparation of reprocessing of irradiated nuclear fuel 25,637 26,662
Asset retirement obligations 219,450 201,142
Other long-term liabilities 7,363 5,377
Current Liabilities 612,964 562,179
Current portion of long-term debt 223,475 186,242
Short-term borrowings 117,000 115,000
Commercial papers 33,000 -
Accounts payable-trade 87,575 86,590
Accounts payable 28,533 46,490
Accrued expenses 59,232 67,336
Accrued income tax 13,106 15,615
Deposit 1,880 1,476
Short-term liabilities to subsidiaries and affiliated companies 41,598 32,411
Other advances 5,701 9,274
Other current liabilities 1,860 1,741
Reserves under the special law 4,308 -
Reserve for fluctuation in water levels 4,308 -
Liabilities Total 3,772,417 3,876,632
Shareholders' Equity
Common stock 407,601 336,663
Paid-in capital 237,304 237,304
Additional paid-in capital 31,107 31,107
Capital reserve 31,087 31,087
Other additional paid-in caoutal 19 19
Retained earnings 141,323 70,405
Legal reserve 59,326 59,326
Retained earnings - carryforward 81,997 11,078
Reserves for losses on overseas investment,etc. 11 16
Contingent reserves 357,000 -
Deferred retained earnings -275,013 11,061
Treasury stock -2,134 -2,153
Valuation and translation adjustments 21,685 4,741
Unrealized gain on other securities 17,826 418
Gain on deferred hedge 3,859 4,323
Total Shareholders' Equity 429,287 341,405
Liabilities and Shareholders' Equity Total 4,201,704 4,218,037
- 31 -
(2) Income Statements
April 1, 2012-March 31, 2013 April 1, 2013-March 31, 2014
Operating Revenues 1,448,876 1,682,994
Electricity 1,408,339 1,634,829
Lighting 591,514 656,698
Power 768,910 871,492
Sales to other electric companies 1,214 319
Sales to other companies 8,656 9,734
Revenues from wheeling service charges 2,960 3,904
Gains from adjustment among electric companies 3,092 4,201
Grant based on the Act on Purchase of Renewable Energy Sourced
Electricity 18,030 74,247
Miscellaneous revenues from electricity 13,549 13,866
Revenues from loaned equipment 411 364
Incidental-Business Operating Revenues 40,536 48,165
Fiber-optic cable leasing service 13,142 14,126
Gas supply 23,072 29,827
Other 4,321 4,210
Operating Expenses 1,754,689 1,795,232
Electricity 1,721,006 1,756,444
Hydro power 43,210 38,571
Thermal power 736,663 797,672
Nuclear power 132,608 131,976
Internal combustion power 30,511 29,633
New energy power 9,480 8,434
Purchase from other electric companies 48,153 24,397
Purchase from other companies 221,429 290,563
Transmission 87,013 78,496
Transformation 41,125 35,694
Distribution 133,846 114,432
Sales 53,511 43,984
Suspended facilities 581 374
Facilities on loan 35 34
General 124,705 87,226
Levy based on the Act on Purchase of Renewable Energy Sourced
Electricity 11,365 25,846
Promotion of power resources development tax 31,817 32,088
Enterprise tax 15,004 17,095
Electricity account transfer (Credit) -58 -77
Incidental Businesses Operating Expenses 33,683 38,787
Fiber-optic cable leasing service 9,947 9,033
Gas supply 20,932 27,090
Other 2,803 2,663
Operating Loss -305,812 -112,237
(Unit: million yen)
- 32 -
April 1, 2012-March 31, 2013 April 1, 2013-March 31, 2014
Other Revenues 8,702 21,426
Financial revenues 5,702 18,059
Proceed from dividends 1,959 14,157
Proceed from interests 3,742 3,902
Non-operating revenues 3,000 3,366
Gain on sale of property and equipment 1,169 -
Other 1,831 3,366
Other Expenses 42,849 46,456
Financial expenses 35,845 38,521
Interest expenses 35,581 38,009
Stock issuance costs ‐ ‐
Bond issuance costs 263 511
Non-operating expenses 7,003 7,935
Loss on sales of tangible fixed assets 205 207
Other losses 6,798 7,727
Total Ordinary Revenues 1,457,579 1,704,420
Total Ordinary Expenses 1,797,538 1,841,688
Ordinary Loss -339,959 -137,267
Provision or reversal of reserve fluctuation in water levels 3,092 -4,308
Provision of reserve fluctuation in water levels 3,092 -
- -4,308
Extraordinary gain - 57,340
Gain on sales of fixed assets - 27,141
Gain on sales of securities - 6,006
Gain on sales of stocks of affiliates - 2,481
- 21,711
Loss before Income Taxes -343,051 -75,619
Corpration Tax,Residence Tax and Enterprise Tax 64 370
Income Taxes-Deferred -5,065 14,949
Income Taxes Total -5,001 15,320
Net Loss -338,050 -90,939
(Unit: million yen)
Reversal of reserve fluctuation in water levels(Credit)
Gain on contributions of securities to retirement benefit trust
- 33 -
(3) Statements of Changes in Shareholders’ Equity
Previous consolidated fiscal year (April 1, 2012 to March 31, 2013)
(Unit : million yen)
Shareholders’ Equity
Additional Paid-in Capital
Paid-in Capital
Capital reserve
Other additional
Paid-in Capital
Additional
Paid-in Capital
Total
Balance at the start ofFY237,304 31,087 22 31,110
Changes during FY
Accumulation of
Reserve for losses
on overseas
investment, etc
Reversal of cost
Behavior adjustment
reserves
Reversal of contingent
reserves
Dividend Declared
Net Loss
Acquisition of
Treasury Stock
Disposal of
Treasury Stock
-2 -2
Net changes during
FY other than
Shareholders’ Equity
Total changes duringFY― ― -2 -2
Balance at the end ofFY237,304 31,087 19 31,107
(Unit : million yen)
Shareholders’ Equity
Retained earnings
Other additional Paid-in Capital
Legal reserve
Reserves for
losses on
overseas
investment, etc
Cost behavior
adjustment
reserves
Contingent
reserves
Deferred retained
earnings
Additional
Paid-in Capital
Total
Balance at the start ofFY59,326 11 100,300 456,000 -126,798 488,839
Changes during FY
Accumulation of
Reserve for losses
on overseas
investment, etc
Reversal of cost
Behavior adjustment
reserves
-100,300 100,300 ―
Reversal of contingent
reserves
-99,000 99,000 ―
Dividend Declared
-9,464 -9,464
Net Loss
-338,050 -338,050
Acquisition of
Treasury Stock
Disposal of
Treasury Stock
Net changes during
FY other than
Shareholders’ Equity
Total changes duringFY― ― -100,300 -99,000 -148,215 -347,515
Balance at the end ofFY59,326 11 ― 357,000 -275,013 141,323
- 34 -
Shareholders’ Equity Valuation and Translation Adjustments
Treasury stock
Shareholders’
Equity Total
Unrealized gain
on other
securities
Gain/Loss on
deferred hedge
Valuation and
Translation
Adjustments
Total
Equity Total
Balance at the start ofFY-2,129 755,124 11,634 -59 11,575 766,700
Changes during FY

Accumulation of
Reserve for losses
on overseas
investment, etc
― ―
Reversal of cost
Behavior adjustment
reserves
― ―
Reversal of contingent
reserves
― ―
Dividend Declared
-9,464 -9,464
Net Loss
-338,050 -338,050
Acquisition of
Treasury Stock
-9 -9 -9
Disposal of
Treasury Stock
3 1 1
Net changes during
FY other than
Shareholders’ Equity
6,191 3,918 10,109 10,109
Total changes duringFY-5 -347,523 6,191 3,918 10,109 -337,413
Balance at the end ofFY-2,134 407,601 17,826 3,859 21,685 429,287
- 35 -
Current consolidated fiscal year (April 1, 2013 to March 31, 2014)
(Unit : million yen)
Shareholders’ Equity
Additional Paid-in Capital
Paid-in Capital
Capital reserve
Other additional
Paid-in Capital
Additional
Paid-in Capital
Total
Balance at the start ofFY237,304 31,087 19 31,107
Cumulative effects of
Changes in
accounting policies
Restated balance
237,304 31,087 19 31,107
Changes during FY
Accumulation of
Reserve for losses
on overseas
investment, etc
Reversal of cost
Behavior adjustment
reserves
Reversal of contingent
reserves
Dividend Declared
Net Loss
Acquisition of
Treasury Stock
Disposal of
Treasury Stock
― ―
Net changes during
FY other than
Shareholders’ Equity
Total changes duringFY― ― ― ―
Balance at the end ofFY237,304 31,087 19 31,107
(Unit : million yen)
Shareholders’ Equity
Retained earnings
Other additional Paid-in Capital
Legal reserve
Reserves for
losses on
overseas
investment, etc
Cost behavior
adjustment
reserves
Contingent
reserves
Deferred retained
earnings
Additional
Paid-in Capital
Total
Balance at the start ofFY59,326 11 ― 357,000 -275,013 141,323
Cumulative effects of
Changes in
accounting policies
20,021 20,021
Restated balance
59,326 11 ― 357,000 -254,992 161,345
Changes during FY
Accumulation of
Reserve for losses
on overseas
investment, etc
5 -5 ―
Reversal of cost
Behavior adjustment
reserves Reversal of contingent
reserves
-357,000 357,000 ―
Dividend Declared
Net Loss
-90,939 -90,939
Acquisition of
Treasury Stock
Disposal of
Treasury Stock
Net changes during
FY other than
Shareholders’ Equity
Total changes duringFY― 5 ― -357,000 266,054 -90,939
Balance at the end ofFY59,326 16 ― ― 11,061 70,405
- 36 -
Shareholders’ Equity Valuation and Translation Adjustments
Treasury stock
Shareholders’
Equity Total
Unrealized gain
on other
securities
Gain/Loss on
deferred hedge
Valuation and
Translation
Adjustments
Total
Equity Total
Balance at the start ofFY-2,134 407,601 17,826 3,859 21,685 429,287
Cumulative effects of
Changes in
accounting policies
20,021 20,021
Restated balance
-2,134 427,622 17,826 3,859 21,685 449,308
Changes during FY
Accumulation of
Reserve for losses
on overseas
investment, etc
― ―
Reversal of cost
Behavior adjustment
reserves
― ―
Reversal of contingent
reserves
― ―
Dividend Declared
― ―
Net Loss
-90,939 -90,939
Acquisition of
Treasury Stock
-18 -18 -18
Disposal of
Treasury Stock
― ― ―
Net changes during
FY other than
Shareholders’ Equity
-17,408 464 -16,943 -16,943
Total changes duringFY-18 -90,958 -17,408 464 -16,943 -107,902
Balance at the end ofFY-2,153 336,663 418 4,323 4,741 341,405
- 37 -
5. Other
(1) Income and Expenditure (Non-consolidated)
(Unit: 100 million yen, %)
FY2013 FY2012 Difference Change Composition Ratio
(A) (B) (A-B) (A/B) FY2013 FY2012
Lighting 6,566 5,915 651 111.0 38.5 40.6
Power 8,714 7,689 1,025 113.3 51.2 52.7
(Subtotal) (15,281) (13,604) (1,677) (112.3) (89.7) (93.3)
Other 1,762 971 790 181.4 10.3 6.7
[Sales] [16,829] [14,488] [2,341] [116.2] [98.7] [99.4]
Ordinary
Revenues
Total 17,044 14,575 2,468 116.9 100.0 100.0
Labor 1,137 1,518 -380 74.9 6.2 8.4
Fuel 7,544 6,797 747 111.0 41.0 37.8
Power purchase 3,149 2,695 453 116.8 17.1 15.0
Maintenance 1,031 1,479 -447 69.7 5.6 8.2
Depreciation 1,723 1,801 -78 95.6 9.3 10.0
Interest 380 355 24 106.8 2.1 2.0
Tax &public dues 860 839 20 102.5 4.7 4.7
Nuclear back-end 223 232 -8 96.2 1.2 1.3
Other 2,366 2,255 110 104.9 12.8 12.6
Ordinary
Expenses
Total 18,416 17,975 441 102.5 100.0 100.0
[Operating Income(loss)] [-1,122] [-3,058] [1,935] [−]
Ordinary Income -1,372 -3,399 2,026 −
Reserve fluctuation in water
levels
-43 30 -74 −
Extraordinary gain 573 − 573 −
Income(loss) before
income taxes
-756 -3,430 2,674 −
Income taxes 153 -50 203 −
Net Income(loss) -909 -3,380 2,471 −
(Note) Nuclear back-end expenses include the costs below:
-Costs for reprocessing of irradiated nuclear fuel
-Costs for preparation of reprocessing of irradiated nuclear fuel
-Costs for disposal of transuranic waste
-Costs for decommissioning nuclear power plants
(Reference)
FY2013 (A) FY2012 (B) Change (A-B)
Crude Oil (CIF) Price 110ドル/b 114ドル/b -4$/b
Exchange Rate 100円/$ 83円/$ 17円/$
- 38 -
(2) Post of an extraordinary gain (Consolidated)
As a part of management rationalization, Kyushu Electric Power Company is promoting asset sales which are
not directly related to electricity business.
Consequently, we posted 3円.5 billion (3円.4 billion as non-consolidated) as a gain on sale of fixed assets and 8円
million (0円.6 billion as non-consolidated) as a gain on sale of securities in the 4th quarter of FY2013 (January,
2014 to March, 2014)
(Reference) Breakdown of an extraordinary gain
(Unit: 100 million yen)
April 1, 2013-
December 31, 2013
January 1, 2014-
March 31, 2014
April 1, 2013-
March 31, 2014
Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated
Gain on sales of
fixed assets
225 237 35 34 261 271
Gain on sales of
securities
55 53 − 6 55 60
Gain on sales of
stocks of affiliates
− 24 − − − 24
Gain on
contributions of
securities to
retirement benefit
trust
217 217 − − 217 217
Total 498 532 35 40 534 573