Financial ResultsTheThe 1st
1st Quarter
Quarter of FY 2016
of FY 2016JJuly 29
uly 29, 20
, 201166
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.
Table of Contents
Table of Contents
Financial Results and Forecasts Summary
FY2016 1st Quarter Financial Results Summary
FY2016 1st Quarter Financial ResultsP1Factors contributing to change in Ordinary Income (Non-Consolidated)P2FY2016 Financial Results Forecasts and Dividend Forecasts
Electricity Sales Volume P3
Generated and Received Electricity P4
Income Statement Summary (Non-Consolidated) P5P6P7P10P9
[Explanations] Fuel, Power purchase
Balance Sheet Summary (Non-Consolidated)
Income Statement Summary, Balance Sheet Summary (Consolidated)
[Explanations] Ordinary Revenues
(Reference) The effect of time lag of fuel cost adjustmentP8Segment InformationP11P12P13(Reference) Changes in Financial situation (Non-Consolidated)
Financial Results and Forecasts
Financial Results and Forecasts Summary
Summary FYFY2016 1st
2016 1st Quarter
Quarter Financial Results
Financial Results Summary
Summary1-10.0-10.0Extraordinary loss
(159.6)
(16.6)
(28.0)
(44.7)
(Operating Income )
178.916.721.137.9Ordinary Income
114.92.718.821.6Net Income
attributable to owners of parent90.6-40.8
436.2
395.4
Ordinary expense94.8-23.7
453.5
429.8
Sales [Figures are included above]94.7-24.1
457.4
433.3
Ordinary revenue
Change
Difference
FY2015 1Q
FY2016 1Q
【Consolidated】-9.7-9.7
Extraordinary loss
(180.7)
(18.3)
(22.7)
(41.1)
(Operating Income )
144.611.425.537.0Ordinary Income89.5-2.524.822.2
Net Income89.5-43.1
410.6
367.5
Ordinary expense94.3-24.0
423.3
399.3
Sales [Figures are included above]92.7-31.6
436.2
404.5
Ordinary revenue
Change
Difference
FY2015 1Q
FY2016 1Q
【Non-Consolidated】
Consolidated
Non-Consolidated
(Billions of Yen,%)
Note: As of the end of FY2016 1Q, 68 affiliates were subject to consolidated accounting.
Breakdown:
Consolidated subsidiaries: 41 companies (no change from the end of FY2015)
Equity method companies: 27 companies (no change from the end of FY2015)
(Billions of Yen,%)
The earnings for the first quarter of 2016 was in the black due to group-wide cost reduction efforts, and a decrease of fuel cost caused by restarting units 1 and 2 of Sendai
nuclear power station and decline of fuel prices, while extraordinary losses, associated with the 2016 Kumamoto Earthquake, are recorded. In addition to decreases of costs,
delaying reflection of electricity rate decrease to the next quarter in fuel cost adjustment system, on the revenue side, also contributed to make profits.
Consolidated sales (operating revenues) decreased by 5.2% to 429円.8 billion compared with the 1Q of FY2015 and the ordinary revenues decreased by 5.3% to 433円.3 billion
as lighting and power revenue decreased mainly due to a decrease in charge unit price with the effect of fuel cost adjustment system and in electricity sales volume, while
grant based on the Act on Purchase of Renewable Energy Sourced Electricity, on the revenue side, increased.
On the expenditure side, ordinary expenses decreased by 9.4% to 395円.4 billion compared with the 1Q of FY2015 due to group-wide cost reduction efforts, and a decrease of
fuel cost caused by restarting units 1 and 2 of Sendai nuclear power station and decline of fuel prices, while power purchase from renewable energy increased.
As a result, the ordinary income increased by 78.9% to 37円.9 billion. Profit attributable to owners of parent increased by 14.9% to 21円.6 billion mainly because restoring costs
of facilities, damaged by the 2016 Kumamoto Earthquake, were recorded as extraordinary losses.44.728.021.137.918.821.6
453.5
429.8100200300400500FY2015 1Q FY2016 1Q
(Billions of Yen)015304560(Billions of Yen)
Operating Income (Right) Ordinary Income (Right)
Net Income (Right) Sales (Left)41.122.737.025.522.224.8
399.3
423.3100200300400500FY2015 1Q FY2016 1Q
(Billions of Yen)015304560(Billions of Yen) 2The Previous Forecasts
The Revised Forecasts----
Net Income
attributable to owners of parent----
Ordinary Income----
Operating Income
1,830.0
920.0
1,810.0
905.0
Sales
FY2016
Full-year
FY2016 2Q
FY2016
Full-year
FY2016 2Q
(Billions of Yen)
【Reference: Key Fundamentals】
【Consolidated】 【Non-Consolidated】 (Billions of Yen)
【Financial Result Forecasts and Dividend Forecasts 】
FY2016 Financial Results Forecasts and Dividend Forecasts
FY2016 Financial Results Forecasts and Dividend Forecasts
The Previous Forecasts
The Revised Forecasts----
Net Income----
Ordinary Income----
Operating Income
1,700.0
860.0
1,680.0
845.0
Sales
FY2016
Full-year
FY2016 2Q
FY2016
Full-year
FY2016 2Q
The Previous Forecasts
The Revised Forecasts
115 yen/$
106 yen/$
107 yen/$
Exchange rate
40 $/b
48 $/b
46 $/b
Crude oil CIF price
79.4 Bln kWh
39.5 Bln kWh
79.0 Bln kWh
39.1 Bln kWh
Electricity Sales
Volume
FY2016
Full-year
FY2016 2Q
FY2016
Full-year
FY2016 2Q
Sales of FY2016 will be 905円.0 billion in the first half and 1,810円.0 billion in the full year, which are bellow the previous forecasts on April 2016, because
lighting and power revenue will decrease due to a decrease of electricity sales volume and grant based on the Act on Purchase of Renewable Energy
Sourced Electricity will also decrease.
Income forecasts are currently not able to be estimated because we are now in the process of considering measures for improving income to offset effect of
the 2016 Kumamoto Earthquake, and it is difficult to calculate fuel costs rationally under uncertain prospects for the restart of Genkai nuclear power station.
We will make every effort for efficiency to achieve making profits while ensuring safety, compliance, and stable supply.
We will promptly inform you of our forecasts when it is possible for us to make them.
Interim and year-end dividend for FY2016 ending March 31, 2017 has yet to be decided. We will promptly inform you of our forecasts when it is possible for
us to make them .
業績概要
FY201
FY20166 11st
st Quarter
Quarter Financial Results
Financial Results
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar
(Million-kWh)
FY2016
FY2015
FY2014
FY2013
FY2012
〔Lighting〕
〔Power〕
Electricity Sales Volume
Electricity Sales Volume3【Electricity Sales Volume】96.5-665
18,137
Total95.2-603
11,870
Power99.0-63
6,267
Lighting
Change
Difference
vs.FY2015 1Q
FY2016 1Q
(Million-kWh,%)
【 Changes in Electricity Sales Volume 】
・Lighting demand decrease by 1.0% compared with the 1Q of FY2015 due to different meter-reading period.
Power demand decreased by 4.8% compared with the 1Q of FY2015 due to a decrease of production in some factories.
・As a result, total electricity sales volume decreased by 3.5% to 18.14 billion kWh.
(177)
(1,644)
(385)
(1,046)
(2,062)
3,9446511,875
6,0081112724696196010
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY2012 FY2013 FY2014 FY2015 FY2016 1Q
(Million-kWh)0100200300400500600700
(ten thousand-kWh)
Volume of power purchase (FY)(Left)
Volume of power purchase (1Q)(Left)
Solar Power Facilities (End of FY) (Right)
112.0
123.188.968.597.70.0 0.0 0.039.90.0050100150
FY2012 1Q FY2013 1Q FY2014 1Q FY2015 1Q FY2016 1Q
Water f low rate
Nuclear power utilization rate
Generated and Received Electricity
Generated and Received Electricity4【Generated and Received Electricity】 (Million-kWh,%)
※(注記)1 Own facilities’ generation means transmission–end number.
【 Water flow rate and Nuclear power utilization rate 】8.3-18817Interchange
373.9-276-377
For pumping97.3-519
18,889
Total82.0-1,084
4,925
Subtotal
121.84152,317
New Energy※(注記)257.2-1,517
2,023
Thermal
103.318585
Hydro
From other
companies
107.7
1,029
14,324
Subtotal85.8-42254New Energy※(注記)2
(39.9)
(39.9)-3,966
3,908
Nuclear
(Utilization rate)74.0-3,070
8,720
Thermal
(11.1)
(123.1)
113.81751,442
Hydro
(Water flow rate)Ownfacilities
※(注記)1
Change
Difference
vs.FY2015 1Q
FY2016 1Q
On the supply side, our own facilities’ generation decreased due to restart of units 1 and 2 of Sendai nuclear power station in addition to a decrease of
electric sales volume, and an increase of purchase from new energy.
※(注記)2 "New Energy'' includes Solar, Wind, Biomass, Waste and Geothermal.(%)【Solar Power Connection Volumes and power purchase 】
Equivalent to the purchased
costs of renewable energy
sourced electricity
(Purchased power)
Purchsedcostadjustment
organization
Electric
power
company Operators of
renew able
energy pow er
generation
plants
Customer
Levybased on the Act on
Purchase of Renewable
EnergySourced Electricity
(Operating expenses)
Renewable Energy
Power Promotion Surcharge
(Electricitysales)
Grant based on the Act on
Purchase of Renewable Energy
Sourced Electricity
(Operating revenues)
70.3 Bln of Yen※(注記)
(53.6 Bln of Yen)
32.0 Bln of Yen※(注記)
(20.9 Bln of Yen)
32.0 Bln of Yen※(注記)
(20.9Bln of Yen)
82.3 Bln of Yen※(注記)
(67.2 Bln of Yen)
Income Statement Summary (Non
Income Statement Summary (Non-
-Consolidated)
Consolidated)5(Billions of Yen,%)
Extraordinary loss on natural disaster 9.5 Contingent loss 0.1-9.7-9.7
Extraordinary loss89.5-2.524.822.2
Net Income
201.52.22.24.5Income taxes
Gain on sale of securities -2.4--2.42.4-
Extraordinary gain52.0-0.40.90.5
Reserve for fluctuation
In water levels
144.611.425.537.0Ordinary Income
(180.7)
(18.3)
(22.7)
(41.1)
(Operating Income)
Effect of restarting to generate electricity in Sendai Nuclear Power around-21.0
Decrease in Fuel -26.5 Increase in nuclear back-end 3.0 Increase in Depreciation 2.589.5-43.1
410.6
367.5
Total
Levy based on the Act on Purchase of Renewable Energy Sourced Electricity 11.0 (32.0 ← 20.9)
Overhead expenses -0.1
116.610.261.471.6Other
162.22.43.96.4Nuclear back-end96.8-0.620.219.6
Tax and public dues90.9-0.89.58.7
Interest
Regular depreciation 2.8 Trial operations depreciation 1.2
110.44.139.843.9Depreciation
Thermal 2.9 Distribution 1.6
117.04.627.131.7Maintenance
Purchase from other electric companies -3.5
Purchase from other companies 0.4
[Figures are included above:Purchase of Renewable Energy Sourced Electricity 15.0 (82.3 ← 67.2)
Thermal from other companies -14.1]97.2-3.0
108.4
105.4
Power purchase
Drop in CIF -13.9 Exchange losses -4.0
Effect of restarting to generate electricity in Sendai Nuclear Power -26.5
Difference of the composition of thermal electric power generation -9.843.2-61.7
108.646.8Fuel
105.61.731.233.0Labor
Ordinary
Expenses92.7-31.6
436.2
404.5
Total
(94.3)
(-24.0)
(423.3)
(399.3)
(Sales)
Grant based on the Act on Purchase of Renewable Energy Sourced Electricity 16.6(70.3← 53.6)
Proceed from dividends -7.6
111.49.382.091.3Other86.3-28.9
210.5
181.6
Power
Effect of fuel cost adjustment -42.4(-29.6← 12.8)
Decrease in electricity sales volume -11.3 Renewable Energy Power Promotion Surcharge 11.0 (32.0← 20.9)91.6-12.0
143.6
131.5
Lighting
Ordinary
Revenues
Explanations
Change
Difference
FY2015 1Q
FY2016 1Q
【Reference 1 :Key Fundamentals】
11.1 %
112.0 %
123.1 %
Water flow rate
39.9 %- %39.9 %
Nuclear power utilization rate
-13 yen/$
121 yen/$
108 yen/$
Exchange rate
-19 $/b
60 $/b
41 $/b
Crude oil CIF price
Difference
FY2015 1Q
FY2016 1Q
【Reference 2 :Structure of Feed-in Tariff power purchase and sale system of renewable energy 】
※(注記) Note:Figures for FY2016 1st Quarter and FY2015 1st Quarter in parenthesis.
(1%) 0.1
(1%) 0.6
(1yen/$) 0.4
(1ドル/b) 0.7
Financial impact
(Billions of Yen)
Note: The underlined parts are related to Feed-in Tariff Power purchase and sale system of renewable energy 6+11.4
Factors contributing to change in Ordinary Income
Factors contributing to change in Ordinary Income ((NonNon-
-Consolidated
Consolidated))FY20151QFY20161Q(Billions of Yen)25.5Drop in CIF
+13.9
Effect of
fuel cost
adjustment
‐42.4
+17.6
‐1.237.0Effect of
restarting to
generate
electricity in
Sendai Nuclear
Power
+21.0
Exchange
losses+4.0Decrease in
Electricity sales
volume
‐11.3+9.8Decrease of
Thermal from other companiesandPurchase from other
electric companies
Difference of the
composition of thermal
electric power
generation
Other
15,000
20,000
25,000
30,000
35,000
40,000
45,000
2015.4 2015.7 2015.10 2016.1 2016.4 2016.7
(yen/kl)
Average fuel price0〜〜The effect of time lag
around ‐30 billions of yen
around 25 billions of yen
around ‐47 billions of yen
2015.1Q 2016.1Q
around 17 billions of yen
Standard fuel
cost price
2015.4 2015.5 2015.6 2015.7 2015.8 2015.9 2015.10 2015.11 2015.12 2016.1 2016.2 2016.3 2016.4 2016.5 2016.6
JCC($/b) 56 59 64 64 59 51 48 48 44 37 30 32 37 41 45
JLC($/t) 528 459 449 463 473 497 491 468 438 404 407 375 327 305 ‐
(Reference)((Reference
Reference) The effect of time lag of fuel cost adjustment
) The effect of time lag of fuel cost adjustment
The effect of the decline of fuel prices from the latter half of FY2015
・ A part of the fuel prices in the latter half of FY2015 below the standard fuel price were reflected as
the decrease income in FY2016 1Q [around -30 billions of yen]
・Fuel prices of FY2016 1Q below the standard fuel price weren’t reflected as the
decrease income in FY2016 1Q and brought forward after FY2016 2Q. [around -47 billions of yen]
The income and expenditure improved due to the effect of this time lag of fuel cost adjustment *.
[around 17 billions of yen] (FY2015 1Q : around 25 billions of yen)
*The average fuel prices in each three month are reflected two months later.7○しろまるThe effect of the decline of fuel prices (The image of time lag of fuel cost adjustment) [[Explanations
Explanations] Ordinary Revenues
] Ordinary Revenues
(Billions of Yen,%)88.4-41.0
354.2
313.1
Lighting and Power
Change
Difference
FY2015 1Q
FY2016 1Q
2. Decrease in electricity sales volume -11.3
Difference FY2015 1Q
FY2016 1Q81. Effect of fuel cost adjustment -42.4 ( -29.6 ← 12.8 )
2. Proceed from dividends -7.6 ( 2.9 ← 10.6 )
111.49.382.091.3Others
Change
Difference
FY2015 1Q
FY2016 1Q
1. Grant based on the Act on Purchase of
Renewable Energy Sourced Electricity 16.6 ( 70.3 ← 53.6 )
Difference FY2015 1Q
FY2016 1Q
3. Renewable Energy Power Promotion Surcharge 11.0 ( 32.0 ← 20.9 )
(Billions of Yen,%)
【Lighting and Power】
327.8
354.2
360.3
313.1
313.7250300350400
FY2012 1Q FY2013 1Q FY2014 1Q FY2015 1Q FY2016 1Q
(Billions of Yen) 【Others】19.348.361.782.091.3104070100FY2012 1Q FY2013 1Q FY2014 1Q FY2015 1Q FY2016 1Q
(Billions of Yen)
2. Exchange losses -4.09[Explanations]
[Explanations] Fuel, Power purchase
Fuel, Power purchase
(Billions of Yen,%)43.2-61.7
108.646.8Fuel
Change
Difference
FY2015 1Q
FY2016 1Q
[ Reference1 ] All Japan CIF prices-95960865LNG (thousand. ton)-1931930Crude oil (thousand. kiloliter)-43344411Heavy oil (thousand. kiloliter)-411,103
1,062
Coal (thousand. ton)
Difference
FY2015 1Q
FY2016 1Q
[ Reference2 ] Fuel consumption97.2-3.0
108.4
105.4
Power purchase
Change
Difference
FY2015 1Q
FY2016 1Q
(Billions of Yen,%)
1. Purchase from other electric companies -3.5 ( 0.2 ← 3.7 )
Difference FY2015 1Q
FY2016 1Q
2. Purchase from other companies 0.4 ( 105.1 ← 104.6 )
Difference
1. Drop in CIF -13.9
4. Difference of the composition of thermal electric power generation -9.8 ◆だいやまーく Purchase of
Renewable Energy Sourced Electricity 15.0 ( 82.3 ← 67.2 )
◆だいやまーく Received thermal
from other companies -14.1 ( 18.9 ← 33.0 )-196041Crude oil($/b)-164480316LNG($/t)-138269Coal($/t)
Difference
FY2015 1Q
FY2016 1Q
3. Effect of restarting to generate electricity in Sendai Nuclear Power -26.5
【Power purchse】
105.498.763.076.9108.404080120
FY2012 1Q FY2013 1Q FY2014 1Q FY2015 1Q FY2016 1Q
(Billions of Yen)
【Fuel】
178.0 174.5
169.6
108.646.82080140200FY2012 1Q FY2013 1Q FY2014 1Q FY2015 1Q FY2016 1Q
(Billions of Yen)
Balance Sheet Summary (Non
Balance Sheet Summary (Non-
-Consolidated)
Consolidated)10Assets
-104.6
4,321.4
4,216.8
Total
Cash and cash equivalents -138.8
(Jun. 30, 2016 232.6 ← Mar. 31, 2016 371.4)
Construction in progress -47.9(appropriation 56.2 adjustment -102.9)
Accounts receivable 38.0
-150.2
1,296.4
1,146.1
Others-6.8670.8
664.0
Investments and Other Assets
Construction completed 102.9 Depreciation -42.752.42,354.1
2,406.6
Utility Property, Plant and
Equipment
Explanations
Difference
Mar. 31, 2016
Jun. 30, 2016
(Billions of Yen)
Liabilities and Equity
-104.6
4,321.4
4,216.8
Total
FY2016 1Q Net Income 22.2 Dividends Paid -9.5
[Equity Ratio] Jun. 30, 2016 9.4% ← Mar. 31, 2016 8.9%11.2385.1
396.4
Equity
Interest-bearing Debt -38.6 Accrued expenses -26.3
Accounts payable-trade -21.1
Short-term liabilities to subsidiaries and affiliated companies -20.9
-115.8
3,936.2
3,820.4
Liabilities
Explanations
Difference
Mar. 31, 2016
Jun. 30, 2016
-38.6
3,020.0
2,981.3
Total
-58.6
1,895.6
1,836.9
Loans20.01,124.4
1,144.4
Bonds
Difference
Mar. 31, 2016
Jun. 30, 2016
(Billions of Yen)
(Billions of Yen)
【Reference: Interest-bearing Debt】
Income Statement Summary
Income Statement Summary ,
, Balance Sheet Summary (Consolidated)
Balance Sheet Summary (Consolidated)11-10.0-10.0Extraordinary loss
114.92.718.821.6Net Income attributable to owners of parent--2.92.9-
Extraordinary gain52.0-0.40.90.5
Reserve for Fluctuation In Water Levels
178.916.721.137.9Ordinary Income
(159.6)
(16.6)
(28.0)
(44.7)
(Operating Income)90.6-40.8
436.2
395.4
Total95.6-0.410.710.2
Other Expenses
102.20.729.730.4Other89.6-41.1
395.7
354.7
Electric90.5-40.3
425.5
385.1
Operating Expenses
Ordinary
Expenses94.7-24.1
457.4
433.3
Total88.8-0.43.93.4
Other Revenues97.9-0.734.633.9
Other94.5-22.9
418.8
395.9
Electric94.8-23.7
453.5
429.8
Operating Revenues (Sales)
Ordinary
Revenues
Change
Difference
FY2015 1Q
FY2016 1Q
Income Statement Summary
127.24.115.019.2Comprehensive Income
FY2016 1Q
Consolidated Ratio
(1.08)
Balance Sheet Summary9.5499.9
509.4
Equity
-46.4
3,224.8
3,178.4
Interest-bearing Debt
-121.6
4,248.3
4,126.6
Liabilities
-112.1
4,748.2
4,636.0
Total Assets
Difference
Mar. 31, 2016
Jun. 30, 20160.510.110.6【Reference 】Equity Ratio (%)
(Billions of Yen,%)
(Billions of Yen)
(1.09)
(1.03)
(0.97) 12Segment Information
Segment Information
(Billions of Yen)
2016/1Q 2015/1Q Difference Explanations
Sales 396.8 419.8 -22.9
Operating
Income
40.4 22.1 18.3
Sales 39.0 38.0 1.0
It increased due to an increase of construction revenues of plants in spite of
a decline in the sales amount of gas and LNG.
Operating
Income
1.0 2.0 -1.0
It decreased due to a decline in the sales amount of gas and LNG and an
increase of costs of sales regarding the construction of plants.
Sales 21.2 21.7 -0.5
It decreased due to a decline in contracted developments of information
systems.
Operating
Income
1.9 2.0 ‐
It is equivalent due to a decline in costs of sales regarding the development
of information systems in spite of an increase of depreciation expenses
associated with expansions of the optical broadband.
Sales 5.9 6.1 -0.1 It decreased due to a decline in revenues regarding real estate sales.
Operating
Income
1.2 1.1 0.1 It increased due to a decline in depreciation expense of lease of buildings.
Note:The above amounts represent figures prior to elimination of transactions among segments.
Other
Energy-related
business
Electric Power
IT and
Telecommunications
(Reference) Changes in Financial situation
(Reference) Changes in Financial situation ((NonNon-
-Consolidated)
Consolidated)13327.7
639.7
438.9
101.5
57.4 68.613.601002003004005006007008009001,000
Mar.31,2011 Mar.31,2012 Mar.31,2013 Mar.31,2014 Mar.31,2015 Mar.31,2016 Jun.30,2016
Equity
Ratio (%)
24.9 18.7 10.2 8.1 7.3 8.9 9.4
(Billions of Yen)
Capital +
legal reserve
Capital, etc.
Other additional
paid-in capital,
Retained
earnings -
carryforward,etc.Equity
429.2
Equity
766.7
Equity
967.5
Equity
341.4
-571.1-5.4Equity
322.2
Equity
385.1
prefferd
stock
100.0
Equity
396.4
For more information, please contact:
Investor Relations Group
Corporate Planning Division
KYUSHU ELECTRIC POWER CO.,INC.
TEL : +81 92 726 1575
FAX : +81 92 733 1435
URL : http://www.kyuden.co.jp/en_ir_index