Financial Forecast Revision for FY2014
March 9
March 9, 201
, 20155Presentation Material
Statements made in this overview of operations regarding Kyushu Electric Power’s strategies and
forecasts and other statements that are not historical facts are forward-looking statements based on
management’s assumptions 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.
■しかく
■しかく Financial Results
Financial Results Forecasts for FY2014
Forecasts for FY2014 ■しかく
■しかく
【Reason for the revision of Consolidated Financial Results Forecasts
for FY2014】
・ Kyushu Electric Power has 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.1 ■しかく
■しかく Financial Results
Financial Results Forecasts for FY2014
Forecasts for FY2014 ■しかく
■しかく2【Summary of Consolidated Financial Results Forecasts for FY2014】
・Kyushu Electric Power has facing an ongoing 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 forecast our financial results for FY2014 as below.
・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 the act on purchase of
renewable energy sourced electricity 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 a 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.
■しかく
■しかく Financial Results
Financial Results Forecasts for FY2014
Forecasts for FY2014 ■しかく
■しかく3(Reference)Key Fundamentals
Electricity sales Volume
Crude oil CIF price
Exchange rate
Nuclear power utilization rate
Change in
Amount
81.5 Billion kWh 84.4 Billion kWh
FY2014 FY2013
▲さんかく2.9 Billion kWh
−% −% −%
▲さんかく18$/b
10\/$
110\/$ 100\/$
110$/b
92$/b
Consolidated (Billion Yen、%) Non-Consolidated (Billion Yen、%)
FY2014
(Forecast)
FY2013
(Actual Results)
Change in
Amount
Rate of
Changes
FY2014
(Forecast)
FY2013
(Actual Results)
Change in
Amount
Rate of
Changes
Sales 1,875.0 1,791.1 83.9 4.7 Sales 1,765.0 1,682.9 82.1 4.9
Operating Profit ▲さんかく 60.0 ▲さんかく 95.8 35.8 − Operating Profit ▲さんかく 70.0 ▲さんかく 112.2 42.2 −
Ordinary Profit ▲さんかく 90.0 ▲さんかく 131.4 41.4 − Ordinary Profit ▲さんかく 105.0 ▲さんかく 137.2 32.2 −
Net Profit ▲さんかく 115.0 ▲さんかく 96.0 ▲さんかく 19.0 − Net Profit ▲さんかく 115.0 ▲さんかく 90.9 ▲さんかく 24.1 −
1,875.0
1,791.1
1,500.0
1,600.0
1,700.0
1,800.0
1,900.0
2,000.0
■しかく
■しかく Financial Results
Financial Results Forecasts for FY2014
Forecasts for FY2014 ■しかく
■しかく4(+83.9)
(Note) The underlined parts are related to Feed-in Tariff Power
purchase and sale system of renewable energy
<Factor of Consolidated Sales Increase +83.9>
・Increase in Electricity Sales of Lighting +18.0
Electricity rate increase +34.0
Difference of fuel cost adjustment charge +23.0
Increase in Renewable Energy Power
Promotion Surcharge +25.0
Decrease in electricity sales volume ▲さんかく52.0
・Increase in grant based on the Act on
Purchase of Renewable Energy Sourced
Electricity +64.0
Sales
(billion yen)
FY2014
FY2013
▲さんかく131.4
▲さんかく90.0
▲さんかく 150.0
▲さんかく 100.0
▲さんかく 50.00.050.0
▲さんかく96.0
▲さんかく115.0
▲さんかく 150.0
▲さんかく 100.0
▲さんかく 50.00.050.0
■しかく
■しかく Financial Results
Financial Results Forecasts for FY2014
Forecasts for FY2014 ■しかく
■しかく5Ordinary Loss Net Loss
(+41.4)
(▲さんかく190)
<Factor of Consolidated Ordinary Loss Reduce +41.4>
・Sales Increase +83.9
・Decrease in Fuel and Power purchase Cost +9.0
Decrease in electricity sales volume +52.0
Exchange losses and Drop in CIF +33.0
Increase in purchase of Renewable Energy Sourced
Electricity ▲さんかく81.0
・Increase in levy based on the Act on
Purchase of Renewable Energy Sourced
Electricity ▲さんかく25.0
・Increase in Maintenance Cost and Overhead
expenses ▲さんかく37.0
(Note) The underlined parts are related to Feed-in Tariff Power
purchase and sale system of renewable energy
<Factor of Consolidated Net Loss Reduce ▲さんかく19.0>
・Consolidated Ordinary Loss Reduce +41.4
・Decrease in an Extraordinary Gain including sales
of real estates ▲さんかく51.0
・Increase in Income Taxes-Deferred affected by
the tax revision of FY2015 (reduction in corporate
tax rate) ▲さんかく10.0
(▲さんかく19.0)
(billion yen) (billion yen)
FY2013 FY2014 FY2013 FY2014
【Forecasts for the effects of Management Efficiency Improvement for FY2014】
・ The effects of Management Efficiency Improvement for FY2014 is estimated to become 295.0 billion yen, proceed 135.0 billion
yen of Efficiency Plan for FY2014 which has announced in April,2014 by 160.0 billion yen due to the inclusion of a tentative
carrying-over limited of Maintenance Cost and Overhead expenses and efficiency improvement in Fuel costs.
・According to the continuous efforts for possible assets sales, we estimate to report 10.4 billion yen as sales amount (9.8 billion
yen as sales profit)
Efficiency cost incorporated
into the rate cost
Accumulated Sales
Amount from FY2013 to
FY20151404010067121786368Sales
Profit842320104418
SalesAmt.Accumulated
Results Forecasts
from FY2013 to
FY2014980197
Sales
Profit
Details
Retirement
Allowance
Payment Trust‐[FY2013]
Site for Kyuden Memorial Gym、Kyusyu Energy Pavilion,
Sakurazaka Training Center, Ebisu employee accommodation,
Remaining Company House Site, etc.
[FY2014] Remaining Company House Site, etc.
Stocks, etc.‐104
Total
SalesAmt.Our equity was put in a trust to be allotted for retirement
payments (profit was reported on the retirement allowance
payment trust of the P/L statement)0Securities
Fixed Assets3101
Forecasts for
FY2014Item■しかく
■しかく Forecasts for the effects of Management Efficiency Improvement
Forecasts for the effects of Management Efficiency Improvement〔〔NonNon--Consolidated
Consolidated〕
〕 ■しかく
■しかく
〔Reference〕Assets sales forecasts (100 million yen)※(注記)Rounded down to the nearest 100 million yen
1Q of
FY2014
2Q of
FY2014
3Q of
FY2014
▲さんかく79.0
▲さんかく143.0
▲さんかく218.0
Efficiency plan
▲さんかく135.0
▲さんかく295.0
FY2014
(Forecasts)
Difference from
the plan
▲さんかく160.0
FY2013
Efficiency plan
for FY2013
▲さんかく141.0
▲さんかく293.0
Difference from
the plan
▲さんかく152.0
〔FY2013(Actual Results)〕 〔FY2014(Forecasts)〕6 【Summary of the tax revision for FY2015】
1.Reduction in corporate tax rate
[Present] legal effective tax rates: 30.7%(Corporate tax rates 25.5%)
[Amendment] legal effective tax rates: 28.7%(Corporate tax rates 23.9%)
The financial results forecast for FY2014 formulate in the effects of
the reduction in corporate tax rate.
2.Gradual reduction of tax loss carry forward amount limit
[Present] 80% of taxable income
[Amendment] 65% of taxable income: FY2015, 2016
50% of taxable income: FY2017
(Note) Period of tax loss carry forward is 9 years at present
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.
■しかく
■しかく Deferred Tax Assets
Deferred Tax Assets ■しかく
■しかく7