Kyushu Electric Power Co., Inc.
Stock code: 9508 URL: https://www.kyuden.co.jp/english_index.html Stock listed on: Tokyo SE, Fukuoka SE
Representative: Mr. Kazuhiro Ikebe, President & Chief Executive Officer
Contact: Investor Relations Group, Corporate Strategy Division. Tel: +81-92-726-1575
Quarterly financial report submission date (plan): November 11, 2020
Date to start dividend payments: November 27,2020
Preparation of supplementary materials for quarterly financial results: Yes
Information meeting for quarterly financial results: Yes (for analysts and institutional investors)
(Rounded down to the nearest million yen)
1. Consolidated Financial Results for the Six Months (April 1, 2020 to September 30, 2020)
(1) Consolidated Operational Results
(% shows the changes from the same quarter period of the previous FY)
(Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%)
April 1, 2020 - September 30, 2020 1,060,512 3.9 91,038 202.1 82,521 382.8
April 1, 2019 - September 30, 2019 1,020,229 -1.1 30,131 -27.6 17,092 -42.1
(Note) Comprehensive income : FY2020 2Q 62,377 million yen (494.2%) FY2019 2Q 10,497 million yen (-52.9%)
(Unit: million yen) (%)
April 1, 2020 - September 30, 2020 63,076 777.7
April 1, 2019 - September 30, 2019 7,186 -63.4
(2) Consolidated Financial Position
(Reference) Shareholders' equity : As of September 30, 2020 : 664,126 million yen As of March 31, 2020: 610,641 million yen
2. Dividends
(Note) Revision of the devidend forecast : Yes
Please refer to "(2) Forecasts of Dividends" on page 3 of the Attachment for the revision of the dividend forecast.
Dividends mentioned the above are regarding common shares. See 'Dividends for Class Shares' regarding dividends
for class shares which differ in shareholders' right from common shares.
3. Consolidated Financial Results Forecasts for FY2020 (April 1, 2020 to March 31, 2021)
Please refer to "(1) Forecasts of Financial Results" on page 2 of the Attachment for revision of the consolidated
financial results forecasts.
October 30, 2020
Profit attributable to
owners of parent
EPS Fully-diluted EPS
The 2nd Quarter of the Fiscal Year Ending March 31, 2021 Financial Results Overview 〔Japan GAAP〕(Consolidated)
Sales Operating profit Ordinary profit
131.13
(Unit: yen)
117.72
(Unit: yen)
(Note) Revision of financial results forecasts : Yes9.9112.25
1Q 2Q 3Q Year-end Total
(Unit: yen) (Unit: yen) (Unit: yen) (Unit: yen) (Unit: yen)
FY2019 ended March 31, 2020 ― 20.00 ― 15.00 35.00
FY2020 ended March 31, 2021 ― 17.50
FY2020 ending March 31, 2021
(forecast)
― 17.50 35.00
Annual dividends per share
Total assets Net assets Shareholders' equity ratio
(Unit: million yen) (Unit: million yen) (%)
As of September 30, 2020 5,019,817 691,715 13.2
As of March 31, 2020 4,948,063 637,957 12.3EPS(Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%) (Unit: million yen) (%) (Unit: yen)
Full-year 2,060,000 2.3 70,000 9.7 45,000 12.4 30,000 ― 58.99
Profit attributable to
owners of parent
Sales Operating income Ordinary income
※(注記) Note
(1)Changes in significant subsidiaries : No
(changes in scope of specified subsidiaries)
Newly added: - Excluded: -
(2) Adoption of methods specific in preparing quarterly consolidated financial statements in accounting practice : No
(3) Changes in accounting principles, changes in accounting estimates, restatement
1 Changes in accounting principles in line with revised accounting standards : No
2 Changes in accounting principles other than 1 : Yes
3 Changes in accounting estimates : Yes
4 Restatement : No
(4) Number of common stocks issued and outstanding
1 Total stocks including treasury stocks at the end of period
FY2020 2Q 474,183,951 shares FY2019 474,183,951 shares
2 Treasury stocks at the end of period
FY2020 2Q 1,153,370 shares FY2019 1,194,235 shares
3 Average number of stocks during the period (Quarter Total)
FY2020 2Q 473,002,501 shares FY2019 2Q 472,979,862 shares
*Quarterly financial results is not the object of quarterly review.
*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 quarterly financial results on our website.
(Note) Applicable to cases when it is difficult to distinguish accounting policy changes from accounting estimate changes.
For details, see "(3) Notes on Quarterly Consolidated Financial Statements :Changes in accounting policies that
are difficult to distinguish from changes in accounting estimates" on Page 8.
(Note) The number of our shares regarding "Board Benefit Trust (BBT)" held by the Trust was included in the number of treasury
stocks at the end of period ( 603,000 shares as of FY2020 2Q and 648,000 shares as of FY2019) . In addition, the number of
our shares held by the Trust was included in the number of treasury stocks, which was to be deducated from the calculation of the
average number of stocks during the period. (633,000 shares for FY2020 2Q and 667,000 shares for FY2019 2Q)
(Reference) Dividends for Class Shares
(Note1) Revision of the dividend forecast : Yes
The breakdown of dividend for class shares which differ in shareholders' rights from common shares is as follows.
(Note2) Please refer to "(2) Forecasts of Dividends" on page 3 of the Attachment for the revision of the dividend forecast.
1Q 2Q 3Q Year-end Total
(Unit: yen) (Unit: yen) (Unit: yen) (Unit: yen) (Unit: yen)
FY2019 ended March 31, 2020 ― 546,575.00 ― 1,052,877.00 1,599,452.00
FY2020 ended March 31, 2021 ― 1,050,000.00
FY2020 ending March 31, 2021
(forecast)
― 1,050,000.00 2,100,000.00
Class A
preferred shares
Annual dividends per share
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2020 2Q
- 1 -
○しろまる Table of Contents of Attached Material
1. Explanation of the Forecast of Financial Results and Dividends ・・・・・・・・・・・・ 2
(1) Forecasts of Financial Results ・・・・・・・・・・・・・・・・・・・・・・・・・ 2
(2) Forecasts of Dividends ・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3
2. Quarterly Consolidated Financial Statements and Notes ・・・・・・・・・・・・・・・・・ 4
(1) Quarterly Consolidated Balance Sheets ・・・・・・・・・・・・・・・・・・・・・・ 4
(2) Quarterly Consolidated Income Statements
and Quarterly Consolidated Comprehensive Income Statements ・・・・・・・・・・・・ 6
(3) Notes on Quarterly Consolidated Financial Statements ・・・・・・・・・・・・・・・・ 8
(Notes on the premise of going concern) ・・・・・・・・・・・・・・・・・・・・・ 8
(Notes in case of drastic changes in the amount of equity)・・・・・・・・・・・・・・・ 8
(Changes in accounting policies
that are difficult to distinguish from changes in accounting estimates) ・・・・・・・・・・8
(Subsequent Events)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2020 2Q
- 2 -
1. Explanation of the Forecast of Financial Results and Dividends
(1) Forecasts of Financial Results
The Forecasts of Financial Results for FY2020 had been undecided because it was not possible to estimate the
impact of the spread of the corona virus infection on electricity sales volume and our businesses.
Taking into account the impact of the corona virus so far and factoring in the assumptions for future impact, we
have calculated the forecast and will announce it.
Although the coronavirus’s staggering economic impact seems to be subsiding and the economy is showing signs
of improvement, it has not fully recovered yet.
Therefore, the electricity sales volume has been calculated on the assumption that this situation will continue until
the end of the fiscal year.
The Forecasts of Financial Results for FY2020
Forecasts of Financial Results
Sales
Operating
profit
Ordinary
profit
Profit
attributable to
owners of
parentEPSForecast previously
announced (A)
(Unit: million yen)-(Unit: million yen)-(Unit: million yen)-(Unit: million yen)-(Unit: yen)-Revised forecast(B)2,060,000 70,000 45,000 30,000 58.99
Difference (B-A) - - - - -
Rate of Change (%) - - - - -
Results for FY2019
(reference)
2,013,050 63,813 40,052 -419 -6.05
Main specifications table
Forecast announced
Results for FY2019
(reference)
Retail electricity sales 75.1 billion kWh* 73.2 billion kWh
Wholesale electricity
quantity
10.3 billion kWh 7.5 billion kWh
Total 85.4 billion kWh 80.7 billion kWh
Crude Oil CIF Price 42$/b 68$/b
Exchange Rate 106\/$ 109\/$
Nuclear Power Utilization
Rate (Transmission-end)
21.7 billion kWh
(62.4%)
28.7 billion kWh
(82.0%)
* The impact of the corona virus: -2.0 billion kWh
Note : Electricity sales volume represents our company and consolidated subsidiaries (Kyushu Electric Power
Transmission and Distribution Co.,Inc and Kyuden Mirai Energy Co.,Inc.) (internal transactions have been
eliminated).
The impact of the corona virus
Retail Ordinary profit
FY2020 ended March 31, 2021 -2.0 billion kWh -21.0 billion yen
April 1, 2020 - September 30, 2020
(reference)
-1.5 billion kWh -16.0 billion yen
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2020 2Q
- 3 -
(2) Forecasts of Dividends
Dividends are determined based on a comprehensive analysis of operating forecasts and medium to long-term
balance situation and financial and other factors.
Based on a comprehensive analysis of operating forecasts and medium to long-term balance situation and financial
and other factors, we regrettably have revised the forecasts of the year-end dividends for FY2019 and we plan to pay
a dividend of 17円.5 per common share.
As for the class A preferred share, there is no change to the previous forecast. We plan to pay a dividend of a total
amount of 1円.05 billion (annual: 2円.1 billion).
・Common shares
Annual dividends per share
Interim Year-end Total
Previously forecast 17円.50 - -
Revised forecast - 17円.50 35円.00
Results for FY2020 17円.50 - -
Results for FY2019 20円.00 15円.00 35円.00
・Class A preferred shares
Annual dividends per share
Interim Year-end Total
Previously forecast 1,050,000円.00 - -
Revised forecast - 1,050,000円.00 2,100,000円.00
Results for FY2020 1,050,000円.00 - -
Results for FY2019 546,575円.00 1,052,877円.00 1,599,452円.00
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2020 2Q
- 4 -
2. Quarterly Consolidated Financial Statements and Notes
(1) Quarterly Consolidated Balance Sheets
(Unit:million yen)
As of March 31, 2020 As of September 30, 2020
Assets
Non-current assets 4,368,942 4,387,763
Electric utility plant and equipment 2,476,991 2,475,277
Hydroelectric power production facilities 258,623 259,269
Thermal power production facilities 302,336 288,502
Nuclear power production facilities 329,498 316,232
Internal combustion engine power production facilities 21,409 20,907
Renewable power production facilities 14,351 14,103
Transmission facilities 575,042 579,162
Transformation facilities 211,969 217,820
Distribution facilities 633,541 639,676
General facilities 114,288 125,734
Other electric utility plant and equipment 15,931 13,866
Other non-current assets 364,850 358,273
Construction in progress 740,130 778,551
Construction and retirement in progress 641,816 674,894
Special account related to nuclear power decommissioning 43,535 42,465
Special account related to reprocessing of spent nuclear fuel 54,777 61,192
Nuclear fuel 240,942 231,809
Loaded nuclear fuel 44,517 35,041
Nuclear fuel in processing 196,424 196,767
Investments and other assets 546,027 543,851
Long-term investments 202,483 208,662
Retirement benefit asset 6,210 6,997
Deferred tax assets 164,272 156,613
Other 174,787 172,862
Allowance for doubtful accounts △しろさんかく1,725 △しろさんかく1,285
Current assets 579,121 632,054
Cash and deposits 204,040 191,078
Notes and accounts receivable - trade 235,706 306,615
Inventories 83,059 91,479
Other 57,087 44,049
Allowance for doubtful accounts △しろさんかく773 △しろさんかく1,167
Total assets 4,948,063 5,019,817
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2020 2Q
- 5 -
(Unit:million yen)
As of March 31, 2020 As of September 30, 2020
Liabilities
Non-current liabilities 3,242,680 3,315,181
Bonds payable 1,154,898 1,209,898
Long-term borrowings 1,640,896 1,658,702
Retirement benefit liability 102,265 100,603
Asset retirement obligations 268,332 271,481
Deferred tax liabilities 7,534 7,264
Other 68,753 67,231
Current liabilities 1,058,585 1,004,170
Current portion of non-current liabilities 415,119 376,507
Short-term borrowings 118,012 125,332
Commercial papers 92,000 98,000
Notes and accounts payable - trade 65,753 66,268
Accrued taxes 19,403 31,814
Other 348,297 306,247
Reserves under special laws 8,840 8,750
Reserve for water shortage 8,840 8,750
Total liabilities 4,310,105 4,328,102
Net assets
Shareholders' equity 632,808 687,774
Share capital 237,304 237,304
Capital surplus 120,008 120,007
Retained earnings 276,997 331,911
Treasury shares △しろさんかく1,501 △しろさんかく1,449
Accumulated other comprehensive income △しろさんかく22,166 △しろさんかく23,648
Valuation difference on available-for-sale securities 2,115 2,337
Deferred gains or losses on hedges 713 △しろさんかく938
Foreign currency translation adjustment △しろさんかく4,697 △しろさんかく7,559
Remeasurements of defined benefit plans △しろさんかく20,298 △しろさんかく17,488
Non-controlling interests 27,316 27,588
Total net assets 637,957 691,715
Total liabilities and net assets 4,948,063 5,019,817
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2020 2Q
- 6 -
(2) Quarterly Consolidated Income Statements and Quarterly Consolidated Comprehensive Income Statements
(Quarterly Consolidated Income Statements)
(Unit:million yen)
April 1,2019-
September 30, 2019)
April 1,2020-
September 30, 2020)
Operating revenue 1,020,229 1,060,512
Electric utility operating revenue 920,246 936,805
Other business operating revenue 99,982 123,707
Operating expenses 990,097 969,473
Electric utility operating expenses 898,790 855,672
Other business operating expenses 91,307 113,801
Operating profit 30,131 91,038
Non-operating income 8,497 7,406
Dividend income 375 959
Interest income 418 441
Share of profit of entities accounted for using equity method 5,042 4,135
Other 2,662 1,869
Non-operating expenses 21,536 15,922
Interest expenses 14,424 12,867
Other 7,111 3,054
Total ordinary revenue 1,028,726 1,067,918
Total ordinary expenses 1,011,633 985,396
Ordinary profit 17,092 82,521
Provision or reversal of reserve for water shortage △しろさんかく199 △しろさんかく89
Reversal of reserve for water shortage △しろさんかく199 △しろさんかく89
Profit before income taxes 17,291 82,611
Income taxes - current 3,194 12,087
Income taxes - deferred 5,888 6,710
Total income taxes 9,082 18,797
Profit 8,208 63,814
Profit attributable to non-controlling interests 1,022 737
Profit attributable to owners of parent 7,186 63,076
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2020 2Q
- 7 -
(Quarterly Consolidated Comprehensive Income Statements)
(Unit:million yen)
April 1,2019-
September 30, 2019
April 1,2020-
September 30, 2020
Profit 8,208 63,814
Other comprehensive income
Valuation difference on available-for-sale securities △しろさんかく185 126
Deferred gains or losses on hedges 1,015 △しろさんかく589
Foreign currency translation adjustment △しろさんかく1,017 △しろさんかく1,194
Remeasurements of defined benefit plans, net of tax 3,042 2,769
Share of other comprehensive income of entities accounted for using equity method △しろさんかく566 △しろさんかく2,547
Total other comprehensive income 2,288 △しろさんかく1,436
Comprehensive income 10,497 62,377
Comprehensive income attributable to
Comprehensive income attributable to owners of parent 9,554 61,594
Comprehensive income attributable to non-controlling interests 943 782
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2020 2Q
- 8 -
(3) Notes on Quarterly Consolidated Financial Statements
(Notes on the premise of going concern)N/A(Notes in case of drastic changes in the amount of equity)N/A(Changes in accounting policies that are difficult to distinguish from changes in accounting estimates)
Change in depreciation method for property, plant and equipment
The Company and its consolidated subsidiaries traditionally used the declining-balance method for calculating
depreciation of property, plant and equipment. From the first quarter of the fiscal year 2020, however, the company has
resolved to adopt the straight-line method of depreciation as a general rule.
For the Kyushu region, which is the main supply area of the Kyuden Group, it is expected that electricity demand in
the future will not increase dramatically, due to population decline and improving energy conservation and electricity
efficiency.
As a result of ongoing liberalization as part of the Electricity System Reform, achieving efficient and stable
operations becomes essential for our power generation and retail electricity business, as it faces an increasing
competitive environment. Similarly, our transmission and distribution company, which was created after the legal
separation in 2020, will steadily work on efficient and stable operations to provide stable electricity supply, while
ensuring neutrality.
When looking at the power generation business, Matsuura Power Station Unit 2 started commercial operation in
December 2019, which was the realization of a major power source development milestone. In addition, the
installation work for Specific Safety Facilities at Sendai Nuclear Power Station Unit 1 and 2 is scheduled to be
completed in FY2020. Therefore when looking forward, it is expected that the majority of future investments will
consist of maintenance and management of existing power sources to ensure stable operation. Regarding the power
transmission and distribution business, in which the stable operation of the equipment is expected in consideration of
demand trends, supply reliability, safety and operation of the equipment, and cost.
In light of these changes, within the company and its surrounding environment, the Group’s medium-term
management plan, beginning from fiscal 2020, positions efficient and stable operation of its facilities as one of its
key-priority initiatives.
Building on this foundation, it is expected that the stable use of facilities will take a prominent part in the electric
power business in the future, so changing the depreciation method for property, plant and equipment to the straight-line
method will better reflect the consumption pattern of future economic benefits.
As a result of this change, Ordinary profit and Profit before income taxes for FY2020 2Q increased by 26,536円
million, respectively, compared to what they otherwise would have been had the previous method been applied.
Kyushu Electric Power Co., Inc. (9508)
Financial Results Overview for FY2020 2Q
- 9 -
(Subsequent Events)
Issuance of Hybrid Corporate Bonds (No Collateral and Subordinated Corporate Bonds)
https://www.kyuden.co.jp/english_company_news_2020_h201009-1.html