The following is a list of some significant risk factors that may have an effect on the operating results, financial position, and other aspects of the Group (consolidated).
     The statements made in this report regarding our future operations are forward-looking statements made in light of information available at the day of the announcement of "financial Results of FY2010."
(There is no important change from "Business Risks Factors" mentioned on securities report submitted in June 2010. However, the March 2011 Great East Japan Earthquake and the accidents at Fukushima Daiichi Nuclear Power Station may have an effect on the financial results of the Group.)

The electricity sales volume in the electricity business reflects economic conditions and seasonal changes in temperatures. These factors may have a material impact on the results and financial condition of the Kyushu Electric Power Group.

Fuel expenses in electricity business fluctuate as a result of trends in CIF prices and in the foreign exchange markets because we procure sources of fuel for thermal power generation including liquefied natural gas (LNG) and coal from overseas.
    The impact of the fluctuation of fuel prices on the Kyushu Electric Power Group's operating results is limited because of fuel cost adjustment system to reflect the volatility in fuel prices on electricity rates.

While the nuclear fuel cycle project is an extremely long-term project with uncertainty, the risks for utility companies have decreased because of government's arrangement and regulations. However, expected amount of costs may change in the future and the cost burden may increase. In that case, the Kyushu Electric Power Group's operating results may be affected.

The Kyushu Electric Power Group is enhancing its revenue basis by utilizing the group's management resources and proactively developing new business area beyond electricity business. In the business operation, we put emphasis on the profitability and work to improve efficiency while pursuing the growth. In case securing the planned profits can not be achieved due to the worsening business conditions, the Kyushu Electric Power Group's performance may be affected.

The Kyushu Electric Power Group's balance of interest-bearing debt as of the end of March 2009 is 2,110.6 billion yen, which accounts for 51% of total assets of the group. Future changes in interest rates have potential to affect the Kyushu Electric Power Group's financial condition.
    However, 94% of outstanding interest-bearing debt comprises long-term debt, and most of these bear interest at fixed rates. The impact of fluctuating interest rates on Kyushu Electric Power Group is therefore viewed as limited.

The Kyushu Electric Power Group has established strict internal frameworks to manage personal information and to secure information security. Additionally, we have implemented thorough protection of personal information by establishing internal policies and guidelines on handling information as well as familiarizing employees with the handling procedures. However, in case of the leaking of personal information, the Kyushu Electric Power Group's operation may be affected.

To ensure a stable supply of electricity to our customers, the Kyushu Electric Power Group implements inspection and maintenance of the facilities systematically to prevent any trouble from occurring. However, large-scaled natural disasters such as typhoons, torrential rains and earthquakes as well as unexpected accidents and illicit acts may damage our facilities and cause long-term shutdown of power stations, and therefore have the potential to affect the Kyushu Electric Power Group's operations.
    The Kyushu Electric Power Group is working to establish a crisis management structure. However, in case of an inappropriate handling of unexpected situation, which brings serious damage to the Kyushu Electric Power Group's reputation, the Kyushu Electric Power Group's operation may be affected.
    Additionally, a tightening of environmental regulations related to global warming has a potential to affect the Kyushu Electric Power Group's operations.