President’s message

To our shareholders and investors,

First, we would like to express our gratitude for your loyal patronage and continuous support for the Kyuden Group.

Regarding our financial results during the first half of the fiscal year, ordinary income decreased compared to the same period of the previous year, in spite of the reduction in fuel costs as nuclear power generation has increased. It is caused by a decline of power sold to other suppliers due to low market prices in the domestic power business, and by an increase of losses in surplus LNG trading due to the sharp decline of the market price, and an increased depreciation as trial runs of Matsuura Unit 2 have started.

Having taken into account the business performance of the current fiscal year and the medium- to long-term earnings and financial conditions, the interim dividend for the current fiscal year was originally set at 20 yen per common share. Unfortunately, after having revised the earnings forecast, we have revised the year-end dividend forecast, which was previously announced as 20 yen per share (40 yen per year) to 15 yen per share (35 yen per year).
By making maximal efforts, we hope to return the dividend to its pre-disaster level as soon as possible, with maintenance of stable dividend payments as a fundamental policy.

Our management environment is at a major turning point, as in April 2020 we are scheduled to split off our power transmission and distribution business and as we face increasing competition, due to the liberalization of the electricity and gas retail sector.
At the same time, societal issues regarding economy, society and environment are becoming more diverse and complex, both in Japan and overseas, and the private sector is increasingly expected to contribute to a solution.

Against this background, the “Kyuden Group Management Vision 2030” was formulated in June of this year. These policies will help ensure our ability to contribute to the sustained development of Kyushu, our business base, and to achieve growth along with the region and its society.

Under the “Kyuden Group Management Vision 2030”, the group will work as one to promote strategy, while aiming to achieve a consolidated ordinary income of 150 billion yen by 2030 (50% from the domestic power business and 50% from other businesses).

In addition, regarding the installation of Specific Safety Facilities at Sendai Nuclear Power Station, we expect that installation construction for Unit 1 will be completed in December 2020 and for Unit 2 will be completed in January 2021. Together with the facilities at Genkai Nuclear Power Station Unit 3 and Unit 4, we will make every effort to complete the construction work as soon as possible.

Our slogan, “Creating the future, starting from Kyushu. Providing more prosperous, comfortable living to become our customers’ No.1 choice”, shows our wish to grow together with the region, while striving to further improve corporate value.

November 2019

President & Chief Executive Officer