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 the financial results for FY2018, Ordinary Income decreased compared to FY2017, although the Genkai nuclear power station resumed commercial operation. This is caused by a decline in electricity sales volume, due to a lower number of contracts and the effect of a warm winter, and higher maintenance costs such as the periodic inspections of the Sendai nuclear power station. In addition, a valuation loss related to the overseas energy business was recorded in accordance with the equity method.

In line with the Kyuden Group Medium-term Management Policy, we have made maximal efforts to complete safety measures of nuclear power station, to achieve early nuclear power restart, to implement policies to enhance our financial condition, and thrive under full deregulation of the retail electricity sector.

We have also positioned autonomous and ongoing enhancement of the safety of our nuclear power stations as a top management priority and we continue to make every effort to early finalize the installation of specific safety facilities.

In 2019, in addition to these efforts, by utilizing Kyuden Group’s strengths, we will strive to further increase our energy service business and to enter new areas such as urban development and infrastructure services, and to create new businesses by promoting innovation, etc.

Through these and related efforts, the Kyuden Group will aim for sustainable growth and strive to further enhance our corporate value.

In addition, though we plan to separate our power transmission and distribution segments in April next year, the Kyuden Group will continue to work in unison to earn customer trust and ensure satisfaction.

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

June 2019

President & Chief Executive Officer