President’s message

To our shareholders and investors,

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

During the fiscal year that ended on March 31, 2021 (fiscal 2020), we have achieved an higher ordinary income compared to FY2019, due to an increase in the volume of electricity sold outside the Kyushu region and a reduction in depreciation costs. The improvement in profitability was achieved despite difficult conditions, such as the negative impact of the COVID-19 pandemic, the price hikes in the wholesale electricity market, caused by the tight supply and demand situation last winter, and the suspension of operations at Sendai Nuclear Power Station, due to the installation work of the Specific Safety Facilities.

For FY2021, ordinary income and net income attributable to owners of parent are forecasted to increase, as we expect an higher operating revenues, from both retail and wholesale sales, and a decrease in fuel costs as a result of the operation of our nuclear power plants. Based on a comprehensive analysis of our medium to long-term balance situation, financial conditions and other factors, we plan to pay a dividend of ¥40 per common share.

The Kyuden Group strives to evolve its initiative to “build a sustainable low-carbon society,” as set out in the “Kyuden Group Management Vision 2030” in a bid to achieve carbon neutrality by 2050. Accordingly, in April this year, we adopted the “Kyuden Group Carbon Neutral Vision 2050,” which addresses the perspectives of energy demand and energy supply at the same time by “lowering the carbon intensity of and de-carbonizing energy sources” and “accelerating the shift toward electricity-based energy consumption.”

We have also adopted a set of new interim fiscal targets (consolidated ordinary income and equity ratio) to be achieved by FY2025 in order to actualize the Management Vision, including the management goal of ¥150 billion in ordinary income.

Seeing responses to global warming as an opportunity for corporate growth, the Kyuden Group will, as a leader in low carbon/decarbonization efforts, aspire to serve as an enterprise group that spearheads Japan’s decarbonization initiatives from Kyushu. We will also continue to further enhance our corporate value by achieving the new fiscal targets in our efforts to steadily actualize the Management Vision.

We would like to ask for the understanding of all our shareholders and investors as we move toward our goals.

June 2021

President & Chief Executive Officer