To our shareholders and investors,
First, I would like to express my gratitude to all of you for your loyal patronage and support of Kyushu Electric Power.

Problem Regarding the Request to Submit Opinions

　At the end of August, I wrote a letter to apologize and explain the improprieties committed by Kyushu Electric Power arising from the Public Forum to Explain Emergency Safety Measures at Genkai Nuclear Power Station to Prefecture Residents, which was held on June 26 this year under the auspices of the Ministry of Economy, Trade and Industry in Saga Prefecture and broadcast over television and the Internet. This involved requests that were made to submit opinions on that occasion, and related matters. I am writing once again to reiterate our regret for the inconvenience and worry we have caused our investors, and to convey our deepest apologies.
　From this point forward, our management and all our employees will join as one in implementing measures to prevent any recurrence of these problems. We are also making maximum efforts to improve our corporate culture.

Positioning Nuclear Power Generation and Assuring Its Safety

　The importance of nuclear power generation in terms of energy security and measures against global warming appears unlikely to change, given the essential premise of safety. In light of the accidents at the Fukushima Daiichi Nuclear Power Station, however, a reassessment of energy policy is underway at the national government level, and we will move along the lines established there in our consideration of how Kyushu Electric Power should address the situation.
　We have also received instruction from the national government to implement a Comprehensive Assessment of Safety Performance (Stress Tests) of nuclear power stations. We are proceeding gradually with this assessment, and we are committed to efforts that will assure everyone in the region an increased sense of safety and confidence.

Cooperation in Power-Saving Measures

　The campaign for Power Saving called on everyone to take even greater care in using electricity in order to secure a stable supply of power this summer. Thank you for your cooperation.
　The severe supply-demand situation is expected to continue this winter. We exert our maximum effort to maintain the stable supply of power, which is our fundamental mission while counting on your continuing cooperation.

Results and Payment of Interim Dividend

　Our consolidated financial results for the first half of this year showed sales edging slightly higher year on year, while ordinary income and net income for the second quarter (cumulative April to September) showed a loss.
　Please be informed that we will pay an interim dividend of 30 yen per share to our shareholders for this period.

Measures to Improve Business Efficiency

　The harsh business environment can be expected to persist for the time being due to the impact of such factors as the postponed resumption of nuclear power station operations and the rise in fuel costs. We will, therefore, engage in thoroughgoing efforts to streamline operations overall while taking care to maintain equipment and assure safety.

In Conclusion

　At Kyushu Electric Power, our commitment is to more than just compliance with laws and regulations. We intend to return to the essence of compliance in the attitude of not causing inconvenience to other people and not causing loss to society or the community. Our aim, therefore, is to promote business activity that is founded on the perspective of corporate social responsibility (CSR), which includes providing thoroughgoing information disclosure, proceeding with public information and public relations activities, and engaging in environmental protection activities with the cooperation of residents and organizations in our region. We will pursue these activities with the aim of restoring our credibility with the members of our community and society at large as well as increasing our value as a company.

November 2011