Kyushu Electric Power Company Inc.
Financial Forecast Revision for FY2014
Kyushu Electric Power Company Inc., has revised the financial forecasts for FY2014 (from April 1st, 2014
to March 31st, 2015) announced on January 30th, 2015.
1. Revised Forecast of financial results for FY2014
(Consolidated) Financial Results Forecast (April 1st, 2014-March 31st, 2015)
Sales
(million yen)
Operating Profit
(million yen)
Ordinary Profit
(million yen)
Net Profit
(million yen)EPS(yen)
The Previous Forecast (A) 1,875,000 − − − −
The Revised Forecast (B) 1,875,000 -60,000 -90,000 -115,000 -243.09
Changes in Amount (B – A) − − − − −
Rate of Changes (%) − − − − −
(Reference)Financial
results for FY2013
1,791,152 -95,821 -131,449 -96,096 -203.19
(Non-consolidated)Financial Results Forecast (April 1st, 2014- March 31st, 2015)
Sales
(million yen)
Operating Profit
(million yen)
Ordinary Profit
(million yen)
Net Profit
(million yen)EPS(yen)
The Previous Forecast (A) 1,765,000 − − − −
The Revised Forecast (B) 1,765,000 -70,000 -105,000 -115,000 -242.93
Changes in Amount (B – A) − − − − −
Rate of Changes (%) − − − − −
(Reference)Financial
results for FY2013
1,682,994 -112,237 -137,267 -90,939 -192.17
2. Reason for revision and Qualitative information regarding forecasts for the consolidated operating
performance
The Kyushu Electric Power Group has facing an ongoing tight supply and demand and severe
financial situation in electricity business stem from the ballooning fuel cost make up for long term
shutdown of all our nuclear power stations while we made thoroughly management efficiency efforts.
Under these situations, we issued Class A preferred shares in the amount of 100円 billion to
allocated to the Development Bank of Japan in August,2014 to stabilize our total operations by
strengthen our equity base.
We have made every effort group-wide to achieve thorough efficiency and an early restart of our
nuclear power stations.
Under these economic conditions, we have announced the forecasts of operating, ordinary, and net
income for FY2014 which were undetermined by calculation mainly based on recent trends in
electrical power supply/demand and progress situation of our management efficiency efforts under
the assumption we cannot restart all of our nuclear power plants in this fiscal year.
Consolidated sales is expected to exceed FY2013 to 1,875円 billion affected by the business
performances in electricity business as lighting and power revenue increased mainly due to an
increase in charge unit price with the effect of electricity rate increase conducted from last fiscal
year and fuel cost adjustment system and grant based on a feed-in tariff power purchase and sale
system of renewable energy while electricity sales volume decreased.
The ordinary loss is expected to reduce degree of loss compared with FY2013 to about 90円 billion
affected by the business performances in electricity business because of the decreased fuel cost due
to decrease in fuel prices and the sales increase in spite of increased costs for power purchases from
renewable energy. The net loss is expected to increase degree of loss compared with FY2013 to about
115円 billion due to a decreased extraordinary gain according to the sales of real estate.
(Reference 1) Key fundamentals of forecast for FY2014
FY2014
(fromApril 1st, 2014 to March 31st, 2015)
The Revised Forecast The Previous Forecast
Electricity sales volume 81.5 Billion kWh 81.5 Billion kWh
Crude oil CIF price 92 $/b 95 $/b
Exchange rate 110 \/$ 110 \/$
Nuclear power utilization rate 0%
(Reference 2) The tax revision of FY2015
The financial results forecast for FY2014 formulate in the effects of the reduction in corporate
tax rate.
※(注記) Since the forecast of financial results has been prepared based on currently available
information at the time of this announcement, actual financial results may be substantially
different from the forecast due to various factors.
Kyushu Electric Power is considering partial change of recorded amount in deferred tax asset at
the end of FY2014 due to the tax revision of FY2015 which refer to the reduction of tax loss
carry forward amount limit. Taking into consideration this tax revision, we recognize there is no
need to reverse deferred tax asset fully.