Presentation materials for IR meeting
November 13, 2023
President & Chief Executive Officer
Kazuhiro Ikebe
Section 1 Performance Highlights
Section 2 Toward Sustainable Enhancement of Corporate Value
Section 3 Progress on Financial Targets
Section 4 Business Topics
(Attachment) Financial Results for 2Q FY2023
Section 1 Performance Highlights
(Contents)
Financial Results for 2nd Quarter of FY2023 (consolidated) 1
Financial Forecasts for FY2023 (consolidated) 3
Forecasts of Dividends for FY2023 4
(Reference) Dividend policy 5
FY2023 2Q FY2022 2Q Change %YoY
Ordinary Revenues 1,099.2 1,025.2 73.9 7.2
[ Sales : Figures are included above ] [1,085.3] [1,010.6] [74.6] [7.4]
Ordinary Expenses 899.6 1,103.1 -203.4 -18.4
Ordinary Loss/ Income 199.5 -77.8 277.3 -
Provision for Reserve for
Fluctuation in Water Levels 0.1 -0.1 0.2 -
Extraordinary Income - 11.2※(注記) -11.2 -
Net Loss/Income attributable to owners of the
parent
149.8 -47.6 197.5 -
Performance Highlights (consolidated) (Billion yen)
Financial results for FY2023 2Q show a significant improvement:
– a positive turn in the effect of the time lag of the fuel cost adjustment system, caused by
lower fuel prices
– decreases in fuel costs, reflecting increased operation of nuclear power stations
(Ref) Ordinary Loss/ Income excluding effect of
time lag 147.5 13.2 134.3 -
※(注記) Gains on sale of investment securities
Financial Results for 2nd Quarter of FY2023 (consolidated) 1
〜Financial Results for 2nd Quarter of FY2023 (consolidated)
Electricity sales volume for retail were 36.8 billion kWh (down 5.4% YoY) impacted by
decreasing contracted electricity outside the Kyushu area.
Electricity sales volume for wholesale were 7.9 billion kWh (down 18.6% YoY).
The total electricity sales volume resulted in 44.7 billion kWh (down 8.0% YoY).
Note1: Some rounding errors may be observed.
Note2: Includes also consolidated subsidiaries Kyushu Electric Power Transmission and Distribution Co., Inc. and Kyuden Mirai Energy Co., Inc.
Intersegment transactions have been eliminated.
(Billion kWh)
Consolidated electricity sales volume
FY2023 2Q FY2022 2Q Change % YoY
Retail 36.8 38.9 -2.1 -5.4
Lighting 11.3 11.2 0.1 0.6
Power 25.5 27.6 -2.1 -7.8
Wholesale 7.9 9.7 -1.8 -18.6
Total 44.7 48.5 -3.8 -8.02Ordinary income is expected to be approximately 170円 billion, exceeding the previous forecast,
despite the decrease in the total amount of electricity sales volume. The increase in ordinary
income is caused by the following factors: the decrease in purchased power costs caused by
lower power prices on the wholesale electricity market, as well as the expansion of the profit on
the time lag of fuel cost adjustments.
This announcement
Previous announcement
(April)
Change % YoY
Sales 2,150.0 2,250.0 -100.0 -4.4
Operating Income 190.0 140.0 50.0 35.7
Ordinary Income 170.0 120.0 50.0 41.7
Net Income attributable to owners of the parent 130.0 90.0 40.0 44.4
This announcement
Previous announcement
(April)
Change % YoY
Retail 74.2 74.5 -0.3 -0.4
Wholesale 16.5 18.7 -2.2 -11.8
Total Volume 90.7 93.2 -2.5 -2.7
〔Forecast of electricity sales volume〕
Note: Electricity sales volume includes also consolidated subsidiaries Kyushu Electric Power Transmission and Distribution Co., Inc.
and Kyuden Mirai Energy Co., Inc. Intersegment transactions have been eliminated.
Forecast of consolidated financial results (Billion yen)
(Billion kWh)
(Ref) Ordinary loss / income excluding
effect of time lag
121.0 98.0 23.0 23.5
Financial Forecasts for FY2023 (consolidated) 3
Regarding forecasts of dividends for FY2023, based on a comprehensive analysis
of financial forecasts for FY2023 and medium to long-term balance situation and
financial and other factors, we plan to pay a dividend of 20円 per common share and
to pay dividend of 1,933,333円 per Class B preferred shares, there is no change to
the previous forecast.
Forecasts of Dividends for FY2023 4
(Reference) Dividend policy
Determine the level of dividend payout based on the stance of maintaining a stable payout
and taking into account this fiscal year’s business performance as well as mid- to long-term
account balance and fiscal conditions.
Work toward to restore dividends to 50円/share as quickly as possible during the financial
target period (by FY2025).
Dividend trends
Once the dividend amount
returns to 50,円 we will aim to
further increase shareholder
returns by considering the
return of profits based on the
growth of other businesses
than the Japanese electric
power business, while
maintaining the basic policy
of stable dividends.
(Fiscal Year)5152030 35
35 40020
2015 2016 2017 2018 2019 2020 2021 2022 2023500
(Yen/share)
(Forecast)5Section 2: Toward Sustainable Enhancement of
Corporate Value
Current analysis 6
Perspectives and Directions for Action 7
Toward Sustainable Enhancement of Corporate Value 8
Path to Sustainable Growth 9
(Contents)
73 79 87 31032 7-561615155051-9▲さんかく1001020▲さんかく50
▲さんかく30
▲さんかく1010305070902015 2016 2017 2018 2019 2020 2021 2022 2023
(業績予想)
Forecast1.361.26 1.14 1.150.810.940.710.7510.112.0
13.4 13.312.312.712.110.40510152000.511.52
2015 2016 2017 2018 2019 2020 2021 2022 現在6Currently, PBR is on an upward trend, but remains at around 0.9x
Main factors are low actual earnings, concerns about finances and uncertainty about medium to
long-term earnings opportunities, which are lowering share market’s expectations on Kyuden’s
growth rate.
PBR transition Business performance
PBR Equity ratio
Net income / loss ROE
Equity ratio:%
ROE:%
PBR:times
Net income (loss) attributable
to owners of the parent
billion yen
Current analysis
concerns about finances
low actual earnings・uncertainty about
medium to long-term
earnings opportunities
Around0.9xAround 20%
current
FY2023※(注記)PBRApprox.0.9xROE
Approx.20%PER
Approx.4.5xPerspectives and Directions for Action 7
Current PBR, ROE, and PER levels and future direction
Envision a medium-term ROE of
approx. 8%, which exceeds the
cost of capital, despite increasing
equity capital
Obtain a better assessment of
earnings stability and growth
potential by eliminating concerns
about low actual capital efficiency,
finances, and medium and long-
term earnings opportunities
Approx. 8%–10%
Continue to aim for 1.0x
or greater
Increase by improving
expected
income growth rateROICApprox. 2.5%
(Approx. 2.0%,
excluding time lag)
Financial
leverage
Equity ratio
of 10.4%2.5%or higher
Approx.20%Medium Term level
(1) Realization of return on capital in excess of cost of capital (increase in ROE) and (2)
improvement of current earnings recovery and evaluation of future growth potential (increase in
PER) are essential to achieve sustainable corporate value growth (continuous PBR of over 1x).
Share price: as of August 31, 2023; net income per share based on FY2023 earnings forecasts (as of August); net assets per share: as of end of FY2022 (excluding preferred shares)
Equity ratio
10.4 %2022end of the fiscalyear2025
Financial Targets
15.0 %
Approx. 20
cost of equity
Approx. 6
Approx.8%2 %2025Target
2019-2021
average
ROE ROIC
Promote continuous and stable profit generation and steady
expansion of growing businesses through ROIC management
Steady accumulation of profit and equity
capital through the operation of 4
nuclear reactors
Strengthening
Shareholder Returns
20 yen/share50By FY2025
as soon as possible2023Dividend Forecast
2.5% and
higher1.3%2025
Target
2019-2021
average
Rise as future
finances improveWACCAbout 1.22023As of 2Q
Finance-related efforts8Perspectives Perspective
IdealState
Generate sustainable, stable income,
strengthen financial base, and thus increase
shareholder return
Targets,etc.
Toward Sustainable Enhancement of Corporate Value
In addition to financial initiatives, expand non-financial initiatives such as carbon
neutrality and strengthening human capital management, leading to lower cost of
capital and higher expected profit growth1)Achieve capital
profitability that
exceeds the
cost of capital
(increase ROE)2)Gain trust through
recent recovery in
earnings and
shareholder return
Obtain positive
assessment of
future growth
potential
(Improve PER)
Lower cost of equity
Improve expected
income growth rate
Non-financial efforts
Non-financial initiatives related to carbon
neutrality, human capital, and other issues,
which increase expectations of medium
and long-term growth
Capital market dialogue
Promote understanding of the above efforts through active dialogue
Steadily implement management cycle to
achieve ROIC target (announced April 2023)
FY2025 financial objectives and management
indicators
Consolidated ROIC : 2.5% or higher
Consolidated ROE : approx. 8%
Ordinary income : 125 billion yen or more
Capital adequacy ratio : approx. 20%
Quickly resume dividend payments (50円/share)
FY2030 environmental objectives
Reduce supply chain GHG emissions: 60%
Electrification rate for Kyushu
Household : 70%, Commercial : 60%
FY2030 employee engagement : 80%
Increase per employee value added : 1.5x
Sustainable
enhancement
of corporate
value
(PBR of 1x or
greater)
Corporate aggregation to
Kyushu
Solid increase of power
demand in Kyushu
Steady income increase
in Growth business9Path for sustainable growth
Four nuclear reactors
Stable supply of electricity
Competitive electricity rates
Resistance to fuel price volatility
Zero emission – FIT power
supply ratio
Introduction of ROIC
management
Electricity with
low CO2 emission factorP11Our strengths
P13〜16
Management style that is
conscious about capital efficiency
From V-shaped recovery
to stable income
generation and growth
phase
2022 2023 ・・・・・
Future growth
factors
Section 3 Progress on Financial Targets
(Contents)
Summary 10
Domestic electricity business 11
Growth businesses(Renewable energy, Overseas, ICT Services, Urban Development) 13
Cashflow / balance sheet improvement for a solid fiscal foundation 17
30.8
11.5 153.21.956.51.5104.45.372.43.913
FY2022 FY2023.2Q Already approved
projects
FY2025
Target
(Billion yen)
FY2022
FY20232QFY2025
Target
Ordinary
income
Japanese electric
power business
[excluding time lag effect]
-133.4
[-72.4]
175.0
[123.0]75.0Total growth
businesses
47.4 24.2 50.0
Included
above
Renewable
energy
2.4 3.9 13.0
Overseas 4.4 5.3 7.0
ICT Services 6.5 1.5 10.0
Urban
Development
3.2 1.9 5.0
Inter-segment
transactions eliminated
-0.7 0.2 -
Total
[excluding time lag effect]
-86.6
[-25.6]
199.5
[147.5]
125.0
Equity ratio 10.4% 15.0%
approx.20%Summary
Over 50円 billion
The ordinary income of Kyuden’s domestic electricity business experienced a temporary dip in
FY2022 but is expected to make a significant improvement in FY2023 and beyond with the
operation of four nuclear reactors.
The ordinary income of Growth business is steadily progressing toward achieving the FY2025
target.10Ordinary income and equity ratio Growth Investment and Growth Business
Ordinary Income Forecast47.450
Cumulative investments
since FY2021(billion yen)
Ordinary income
(Billion yen)
500.0
165.0
(2021〜2022 total)
Renewable energy Overseas business
ICT Services Urban Development
Others Investments24.2(Note) Overseas renewable energy business has been reclassified as
part of "overseas business" following business segment reorganization.
Business expansion
to the Kyushu region accelerates
The Kyushu region is expected to experience an increase in electricity demand in the future due
to the concentration of semiconductor plants and the construction of one of Kyushu's largest
data centres in Kitakyushu.
The company aims to increase revenues by increasing total electricity sales on the strength of
competitive electricity tariff levels and electricity with low CO2 emissions.
Domestic electricity business (demand side) 11
Trends in the semiconductor industry in Kyushu
(companies' major capital investment plans and location agreements).
(Note: Source: Kyushu Semiconductor Human Resources Development Consortium,
Kyushu Bureau of Economy, Trade and Industry, Ministry of Economy, Trade and Industry.
Our strengths and impact
Competitive
electricity tariff levels
Electricity with low
CO2 emission factor
Expanding total electricity sales volume
which will lead to growth in revenues
Total of 65 cases, which involves and investment of JPY 2.08 trillion
(amounts are totals for companies that have publicly announced).
Development of the Hibiki Power Station
Facility that adopts the cutting-edge combined
cycle* system with low CO2 emission with a view
to utilize carbon-free fuel (e.g. hydrogen)
Environmental impact study procedure for the Shin
Kokura Power Station
Environmental impact study procedure has
commenced for existing aging facilities (Unit 3,
Unit 5) in preparation for their replacement with
cutting-edge combined cycle facilities.
Seismic motions without specifying a hypocenter
Currently working on obtaining permission to
change installation details within the transitional
period (until April 2024)
Conducting detailed assessment about the impact
of raising the level of design-basis seismic motion
on facilities before lodging an application for
installation change permission
With the installation of Specific Safety Facilities completed, Kyuden will make maximum use of
its four nuclear power stations in the Safety First approach.
Kyuden will also develop and update environmentally-considerate thermal power stations to
address increasing power demand while ensuring economic viability.
Domestic electricity business (supply side)
Extension of Sendai NPS’s operation
Obtained permission to extend Sendai NPS’s
operation period to 60 years from the Nuclear
Regulation Authority in November this year
Extension period
Extension startdateExtension enddateExtension
period
Unit 1 July 4, 2024 July 3, 2044 20 years
Unit 2 Nov 28, 2025 Nov 27, 2045 20 years12Maximum use of nuclear power generation Plan to develop low-carbon thermal power stations
*Highly efficient power generation system that combines gas
turbines and steam turbines
Power station overview Artist’s impression
Commence commercial operation planned
by the end of FY2025
- Place: Koyo-machi, Wakamatsu-ku, Kitakyushu
(adjacent to the Hibiki LNG terminal)
- Development capacity: 620,000kW x 1 unit
- Thermal efficiency: Approx. 64%
Reducingthecostofdevelopment
researchandadministration
Maintainingahigh
levelofefficiencyandcapacity
factor
Growth businesses (renewable energy business) 13
Leveraging benefits of the planned integration of renewable energy business into Kyuden Mirai
Energy to actively pursue new development, while also deploying PPA business and expanding
business through alliance to accelerate development
Striving to boost the efficiency and capacity factor of existing power sources to maximize power
generation
Main initiative for FY2023
Geothermal
Miya River Watarai Solar Park starts operation
HydroWindSolar
Biomass
New site development (Mt. Eboshi, Kirishima)
Development / replacement (Jikumaru, Chinda, Yoake, etc.)
New site development (Hibikinada, Kitakyushu: Offshore)
New site development (Hirohata, Tahara etc.)
New site development (Miya River Watarai, use of idle land)
ConsideringtheuseofFIP/PPA
Considering
post-FITuseof
power
sources
Supply-demand
adjustment
capacity
business
(storage
batteries,
hydrogen
production)
Tidal
power
generation
Supply-demand
management
service
Started operation in May 2023
- Place: Watarai, Mie prefecture
- Output: Approx. 59,900kW
- Annual expected power generation:
Approx. 82 million kWh
Income-expanding initiatives Short-term opportunity maximization Mid / long-term opportunity expansion
2550 2610 26704000FY2021 FY2022 FY2023.2Q FY2025
1.8 2.43.913
FY2021 FY2022 FY2023.2Q FY2025
Ordinary income (Billion yen)
Renewable energy development(MW)3020(Already approved projects)
Growth businesses (overseas) 14
Promoting high-efficiency gas-fired thermal power and distributed-type business with a focus on
decarbonization investments in renewables, transmission and distribution business in order to
contribute to building a low-carbon and sustainable society in line with the global trend toward
decarbonization
Income-expanding initiatives
Main initiatives for FY2023
Low / zero carbon
initiatives
Short-term opportunity maximization Mid / long-term opportunity expansion
Expansion of business
areas
Deploying business mainly in Asia but also in Americas, Middle East and Europe, which is more advanced in renewable
energies
Maintaining / improving profitability of existing business
operations
Replacing assets to maximize income
Actively participating in the transmission
Distribution business and partnering with development companies to expand renewables business
Expanding thermal power business that contributes to building a low carbon society
Business envisioning a distributed society
CO2-free fuels (hydrogen, ammonia)
Kyuden Group’s first participation in U.S. renewable business (solar)
Signed an agreement with U.S. renewable business Enfinity Global to
acquire solar power generation assets
Capital participation in the Scandinavian startup investment fund
Participating in the startup fund to promote partnership with startups in
business areas with potential synergy with the electricity / energy sector
in order to create new business and services
Establishment of Kyuden International Dubai Office
Establishing an office in the Middle East to gather information about
potential business opportunities in order to reinforce Kyuden’s business
deployment in the region
2910 2840 30004000FY2021 FY2022 FY2023.2Q FY20252.44.45.37
FY2021 FY2022 FY2023.2Q FY2025
Ordinary income (Billion yen)
Overseas equity output (MW)
Implementing open innovation and making active investments in eSports, AI etc. to create new business operations
Growth businesses (ICT service business) 15
Taking advantage of the rapid tide of digital transformation in society to further expand the
market scale of ICT services
Reinforcing existing ICT services (5G, data centers, security etc.) and developing new services
(generative AI-related services) in order to expand income from the ICT service business
Existing services
New services
Strengthening the fiber optics broadband business "BBIQ" and data center business
Reinforcing DX suggestions to
businesses and local
governments
Expanding security-related
services
Deploying the regional information platform nationwide
Expanding business categories for drone services
Contract development of information systems
Providing power storage systems
• Integrated factory management system
covering manufacturing and sales
• Integrating production planning, inventory
management and sales management for
streamlined factory management
Features
■しかく Dashboard function
■しかく Data view function
■しかく AI scheduler function
■しかく Smart Watch synching
■しかく IoT synching
Introduced the production management system "GROTRY" in October
Main initiatives for FY2023
Providing production management systems Deploying generative AI-related services
Income-expanding initiatives Short-term opportunity maximization Mid / long-term opportunity expansion
6.1 6.51.510
FY2021 FY2022 FY2023.2Q FY2025
Ordinary income (Billion yen)
Overseas urban development business
・Strengthening and expanding the condominium development business
Growth businesses (urban development business) 16
Dividing urban development business into three categories based on income-generating
characteristics (short-term recovery type, long-term ownership type, service type) to establish a
balanced portfolio in terms of profitability and stability
Deploying value-added business incorporating energy and digital technology, which are unique
to the Kyuden Group, to expand income
Main initiatives for FY2023
Expanding the asset management business (building up fund
projects)
Establishing the asset management business
(setting up AM companies, compiling private REIT)
Short-term recovery type
Long-term ownership type
Service type
Participation in July 2023
- Five-story wooden structure
featuring a total of 280 rental units
- Construction commenced in July 2022
- Construction due to be completed
in March 2024
Participation in the development of a multi-
family rental housing complex in Dallas, USA
Expanding the asset management business
- Compiling the second, third and fourth property funds and handling asset management on
contract (The third fund is Kyuden’s first standalone contract fund)
Steadily acquiring assets (offices, community development etc.)
Offering added value such as decarbonization and DX
Income-expanding initiatives Short-term opportunity maximization Mid / long-term opportunity expansion
3.2 3.21.95
FY2021 FY2022 FY2023.2Q FY2025
Ordinary income (Billion yen)
Anticipating positive FCF from FY2023 onwards due to high nuclear generation output;
Streamlining management of management resources with a focus on ROIC to generate cash in
the mid- to long-term.
Using generated CF to reinforce fiscal foundation by way of shareholder return and reduction of
interest-bearing liabilities
OperatingCF340
Electricity
Business
Investments,etc.170Growth
Investments100FCF70
(Billions yen)
Increase income by raising the nuclear power usage rate
Increase return on investment for growth businesses
Reduce fixed expenses through increased efficiency, etc.
Increase operating cash flows
Reduce nuclear power safety-related
construction, etc.
Curb electricity business investments
Resume payment of dividends (50円/share)
as soon as possible
within the period of financial objectives
Aim for an equity ratio of approx. 20%
Generate medium
and long-term
cash flows
Domestic Electricity
Business
Increase shareholder
return
Profit growth with capital efficiency in mind
Achieve a stable ROIC that
exceeds WACC
Aim for an ROIC that
significantly exceeds WACC in
the medium and long term
Growth
businesses
Improve financial
stability
Dividends
Limit interest-bearing debt
Cashflow / balance sheet improvement for a solid fiscal foundation 17
Cash flows image for FY2025
Section 4 Business Topics
(Contents)
External evaluation of our sustainability management 18
Achieving carbon neutrality 19
Further strengthening of human capital management 20
Promotion of (DX) Digital Transformation 21
Target setting
SBTi certification for GHG emissions reduction targets
We were the first major energy provider in Japan to be
certified under the Science Based Targets (SBT) initiative
for our GHG emissions reduction targets, which take the
reduction reference of the Kyuden Group’s 2030
management (environmental) targets into account
Proactive Information Disclosure
・Received a leadership level of A- on
climate change from the CDP
・Selected for Supplier Engagement Leaderboard
・Recognized as among the "White 500" corporations under
the 2023 Certified Health & Productivity Management
Outstanding Organizations Recognition Program (both
Kyushu Electric Power and Kyushu Transmission & Distribution)
・Obtained certification for "DX Certified Operator"
by METI (Kyushu Electric Power)18External evaluation of our sustainability management
Steady improvement in external recognition due to promotion of our sustainability initiatives,
setting ambitious targets in addressing climate change, and enhancement of information
disclosure
Kyushu Electric Power has been included in the following five
of the six ESG indices used by the Government Pension
Investment Fund (GPIF) (as of October 2023).
・ FTSE Blossom Japan Sector Relative Index
・ MSCI Japan ESG Select Leaders Index
・ MSCI Japan Empowering Women Index (WIN)
・ S&P/JPX Carbon Efficient Index
・ Morningstar Japan ex-REIT
Gender Diversity Tilt Index (GenDi J)
External assessments on low-carbon and
decarbonization initiatives
Human Capital & DX Related
Status of Inclusion in ESG Indices19Achieving carbon neutrality
Implement the following initiatives to become "carbon negative" by 2050 as early as possible
・Net zero greenhouse gas (GHG) emissions throughout the supply chain.
・Contribute to the reduction of society's GHG emissions through promoting electrification and the
development of renewable energy outside the Kyushu region.
Goals for 2050
Initiatives to contribute to the reduction of GHG emissions in society:
Promotion of electrification within the Kyushu area (contribution to the
electrification rate)
Promotion of renewable energy development outside Kyushu and overseas
CO2 absorption through adequate woodland management, etc.
Electrification rate 61%70%100% 100%
2022 2030 2050
* GHG emissions data have received an Independent Practitioner’s Assurance from Deloitte Tohmatsu Sustainability Co., Ltd in our ESG Data Book 2023.
Household
sector
Contribution to
reduce GHG
emissions
Supply chain
GHG emissions*
Commercial
sector48%60%20Further strengthening of human capital management
We will further strengthen human capital management based on the following concept, with the aim of
"creating future value by fostering an organizational culture where people and the organization can continually
grow."
"We have set "Improve employee engagement" and "Increase added value per employee" as KGIs and to
achieve this goal, we will work to create a system and environment in which diverse human resources can
play an active role by securing and developing human resources to realize our management strategy, and
through D&I initiatives, etc.
* Added value = operating revenues minus value of external purchases (such as fuel expenses, outsourcings costs) and depreciation.
I.e. ordinary income + personnel expenses + rent + finance expenses + taxes and dues.21Promotion of (DX) Digital Transformation
Identifying the essence of DX as "corporate transformation" and applying fundamental
transformation to business models and existing work processes to create new business and
increase income
Developing and securing DX human resources
Developing "DX experts" who have advanced expert knowledge
and can lead company-wide and departmental DX initiatives
Providing training to all employees about basic DX knowledge and
skills to develop "DX followers" capable of actively embracing DX
at their workplaces (turning all employees into DX followers by
FY2025)
Introducing the "reverse mentor" system for senior management,
whereby young employees can provide their expertise in this area
to promote management understanding about digital technology
Utilizing generative AI
Establishing a company-wide environment that facilitates the use of
generative AI and promoting its use to boost productivity (since July
2023)
Drawing up the "Guidelines for using generative AI" to show employees
its basic usages and cautions
Building and utilizing more effective generative AI environment in the
future to improve the organization’s AI-use skills
DX Specialist Human Resources
Possess skills required for DX, such as highly
specialized knowledge and drive
DX followers
Have basic knowledge of digital technologies and data
utilization, and promote DX both independently and
proactively
DX literacy training participants (FY2022:completed by all employees)
Understand DX basics and its necessity
Publication of Integrated Report 22
Using ROIC to improve capital efficiency 23
Renewable energy 24
Overseas business 25
Urban development business 26
Reference material
To view the Integrated Report (online version only), go to:
Kyuden website (IR information)
https://www.kyuden.co.jp/english_index.html
For investors >IR Library>Integrated Report
Kyuden Group Integrated Report (issued at the end of October 2023) 22
Message from the President
- Expressing the company’s commitment to achieving carbon neutrality, i.e.
Kyuden Group’s top-priority task, and describing the determination to recover
business performance and achieve management goals
Sustainable improvement of corporate value
- Current analysis and future direction to achieve PBR constantly above 1
- Growth through carbon neutrality
- Further reinforcement of human capital management
TNFD-related information
- We were the first electric power company in Japan to carry out information
disclosure based on TNFD (beta version)
The detailed version was published on the website in September 2023.
(The version in the integrated report is a summary)
Governance information
- Enhanced disclosure of board discussion contents, cross-shareholding etc.
Data section
- Enhanced fiscal data, addition of external evaluation on ESG etc.
Featuring enhanced contents including the Message from the President to clearly
communicate Kyuden’s value-creation story based on its strengths
Including current PBR analysis and future direction to achieve continuous improvement of
corporate value, while also explaining efforts to further strengthen human capital management
Focus areas of the Kyuden Group Integrated Report 2023
Using ROIC to improve capital efficiency
Setting ROIC targets as below, including clearing WACC, as the standard that should be
achieved group-wide in the mid- to long-term from the perspective of improving shareholder
value and strengthening fiscal foundation.
Financial
foundation
Shareholder
value
Create sustainable
corporate value×ばつ ×ばつ
Guidelines
for setting
targets
ROE around 8% ROE around 8 to 10%
Equity ratio around20%Further improve
financials
(2019〜21
average)1.3%(Ref)
Target
achievement
outlook by
business
※(注記) We will consider announcing business-specific targets after reviewing the impact of renewable energy business integration and other factors
Consolidated
ROIC targets
FY2025 FY2030
2.5% or more 3.0% or more
Japanese
electric power
businessROICTotal growth
businessesROICAround 2.5% 2.5 % or more
Around 5〜6% Around 6〜7%
Consolidated ROIC >
Mid- to long-term WACC
Improving shareholder
value and strengthening
fiscal foundation at the
same time
Balance efficiency and stable supply
of electricity, and ensure ROIC is
consistently above WACC.
Select key businesses for investment
aiming for a ROIC that significantly
exceeds WACC in the mid-to-longterm23
Power station, etc. Prefecture
Total output(kW)RemarksWindKitakyushu Hibikinada Offshore Wind
Farm※(注記)
Fukuoka 220,000 Due to go operational in FY2025
Hydro
Jikumaru Oita 13,600
Due to go operational in March 2025
[12,500kW→13,600kW]
Chinda Oita 9,900
Due to go operational in March 2026
[8,300kW→9,900kW]
Yoake Oita 12,500
Due to go operational in June 2027
[12,000kW→12,500kW]
Subtotal 36,000 -
Geothermal Mt. Eboshi site, Kirishima Kagoshima 4,990 Due to go operational in FY2025
Biomass
【Outside Kyushu】Hirohata Biomass※(注記) Hyogo 74,900 Due to go operational in February 2024
【Outside Kyushu】Tahara Biomass※(注記) Aichi 50,000 Due to go operational in FY2025
Subtotal 124,900 -
Total 353,090 -
※(注記)Under development by Kyuden Mirai Energy
Renewable energy business (status of development projects) 24
Renewable energy development plan (as of October, 2023)
Verification test / Open project
Power station etc. Prefecture
Total output(kW)Remarks
Tidal power
Project to build a local decarbonization model
with tidal power generation (Open tender
project by the Environment Ministry)※(注記)
Nagasaki 1,000
Project period: FY2022〜2025
Verification operation start: FY2024
Project name Generation type
Start of Operation
/Investment
Output Ownership Equity output
Mexico : Tuxpan II Gas 2001/12 495 MW 50.0 % 248 MW
Vietnam : Phu My III Gas 2004/3 744 MW 26.7 % 199 MW
Mexico : Tuxpan V Gas 2006/9 495 MW 50.0 % 248 MW
Singapore : Senoko Energy Gas [Investment] 2008/9 2,380 MW 15.0 % 357 MW
China : Inner Mongolia Wind 2009/9 50 MW 29.0 % 15 MW
Taiwan : Hsin Tao Gas [Investment] 2010/10 600 MW 33.2 % 199 MW
Indonesia : Sarulla I~III Geothermal 2018/5 330 MW 25.0 % 83 MW
USA : Birdsboro Gas [Investment] 2018/1 488 MW 8.3 % 41 MW
USA : Kleen Energy Gas [Investment] 2018/5 620 MW 20.3 % 126 MW
USA : South Field Energy Gas 2021/10 1,180 MW 18.1 % 214 MW
Thailand : EGCO Gas,Renewable, others [Investment] 2019/5 6,317 MW 6.1 % 388 MW
USA : Westmoreland Gas [Investment] 2019/11 940 MW 12.5 % 118 MW
UAE : Taweelah B Gas [Investment] 2020/3 2,000 MW 6.0 % 120 MW
Bahrain : Al Dur I Gas [Investment] 2021/8 1,234 MW 19.8 % 244 MW
Uzbekistan : Syrdarya Gas [Investment] 2022/3 1600 MW 14.3 % 230 MW
Philippines : PetroGreen Renewable [Investment] 2022/10 80 MW 25.0 % 20 MW
USA : Enfinity Solar power [Investment] 2023/10 400 MW 40.0 % 160 MW
Overseas business (list of current projects) 25
<Business Development Overseas (As of October 2023)
Other investments (As of October 2023)NameUAE – HVDC subsea transmission project Supplying clean energy from the mainland to offshore oil / gas production facilities
USA – Persistent Energy Capital LLC Investing in and supporting a venture business in off-grid areas in Africa
Philippines – PowerSource Philippines, Inc. Using existing power distribution networks for off-grid electrification
Thermochem Providing geothermal technology service, consulting service etc.
USA – Enernet Global Inc. Designing optimized facility configuration and operation by combining distributed power sources
Shizen International Developing solar, wind and other renewable energies primarily in Southeast Asia
NordicNinja Fund II Fund investing in startups with strong potential in the field of sustainability and digital technology in the Nordic region
(Note) The list includes projects participated prior to commercial operation. Due to rounding of figures they may not match the sum.
region Category Project name 〜FY2022 FY2023 FY2024 FY2025 〜 FY2030
Utilizing the former Fukuoka City fruit and
vegetable market site (Lalaport Fukuoka) ▼completion of construction
Utilizing the former site of
Niagemachi Elementary School ▼construction starts ▼completion of construction
Fukuoka Maizuru Square ▼completion of construction
Denki Building in front of Nagasaki Station ▼completion of construction
Utilizing the former site of
Fukuoka City Office’s North Annex ▼construction starts ▼completion of construction
Jointly develop Watanabe-dori 2-chome
Project (tentative name) ▼construction starts ▼completion of construction
Island City condoIsland City
condominium project
▼construction starts ▼completion of construction
Kumamoto City Rental Housing Project ▼Investment
Fukuoka City, etc. Rental Housing Business ▼Investment
Utilizing the former site of
Nagasaki Broadcasting Company
▼construction starts ▼completion of construction
Kiyama-cho logistics development ▼construction starts ▼completion of construction
Kasuya-machi logistics development
(LogiPort Fukuoka Kasuya) ▼construction starts ▼completion of construction
Island City logistics operation project ▼Investment
Fukuoka Airport operation project ▼Investment
Kumamoto Airport operation project ▼Investment
Hotels
Hotel investment projects in Japan
including Kanto and Kansai
▼Investment
Office buildings Yokoyama City Office, Laboratory Project ▼Investment
Residential Osaka City Rental Housing Project ▼Investment
Higashi-Ogishima logistics project
(Kanagaw a Prefecture)
▼Investment
Fukuyama City logistics project
(Hiroshima Prefecture)
▼Investment
Airport Hiroshima Airport operation project ▼Investment
Portland USA / Rental housing project ▼construction starts ▼completion of construction
Development of ESG-considerate
rental housing [4 sites] in southern USA
▼construction starts ▼completion of construction
Dallas USA / multi-family rental housing
development project
▼construction starts ▼completion of construction
Logistics Chesterfield USA / Logistics development ▼construction starts ▼completion of construction
Outside
Kyushu
Logistics
Overseas
Residential
kyushu
Multi-functional
facility
Office buildings
Residential
Logistics
Airport
Urban development business (status of development projects) 26
Asset
Management
Business
(Note) Schedule as of the end of October 2023 (plans may change in the future), including properties to be sold by fiscal 2030.
Status of Major Projects (As of October 2023)
Asset
Management
Business
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.
For more information, please contact:
Investor Relations Group
Corporate Strategy Division
KYUSHU ELECTRIC POWER CO.,INC.
TEL : +81 92 726 1575
Email: ir@kyuden.co.jp
URL : https://www.kyuden.co.jp/english_ir_index.html