Message from Top Management
To Our Stockholders and Investors
President & Chief Executive Officer
We would like to express our sincere gratitude to our stockholders and investors for your extremely generous support.
Regarding consolidated financial result of FY2020 2nd quarter, revenues decreased mainly because of the decrease in electricity sales due to intensified competition, however, incomes increased due to our efforts for business efficiency enhancement and improve the effect of the time lag of fuel cost adjustment system. In addition, Net income attributable to owners of the parent increased significantly due to the reversal of a provision for depreciation of nuclear power plants.
Regarding forecasts of consolidated financial results of FY2020, we expect that ordinary income will increase in comparison with the previous year, due to improve the effect of the time lag of fuel cost adjustment system and the our efforts for business efficiency enhancement, despite the decrease in operating revenues due to the decrease in electricity sales.
As announced at the time of financial results announcement for FY2019, based on our dividend policy "continuing with a stable dividend", we have paid out ¥25 per share as the interim dividends to our shareholders and also ¥25 planned as the year-end dividends of FY2020.
Three years since the full liberalization of the retail sale of electricity, as competition with our competitors is becoming tougher, our group still has no prospects on operating nuclear power stations, which is indispensable for the radical recovery of the business base and stabilization of our business, and the situation will continue to be more severe. We will continue to improve earnings and reduce deterioration in financial position by thoroughly improving business efficiency, and will work to develop and expand growth businesses that can leverage the strengths of our group.
In response to the full liberalization of the retail sale of electricity, we will provide high value-added services to meet diverse energy-related needs ranging from home to commercial, so as to go on being chosen by the customers of the Chugoku Region, which is our operating base. In addition, in order to establish a new revenue base, work on electricity sales outside the Chugoku region and power generation business overseas, and promote innovation in electricity business and creation of new businesses with new ideas that are not tied to existing concepts.
As for Shimane Nuclear Power Station, we will respond definitely to the new regulatory requirements enacted by the Nuclear Regulation Authority (NRA), and will continue to engage in improving of safety as we make maximal efforts toward operation restart and start while obtaining the understanding of the local people.
As for Power Transmission and Distribution Division, we established "Chugoku Power Transmission & Distribution Company, Incorporated" as division preparation company in April 2019. We are steadily preparing for April 2020 so that we can move smoothly without impeding stable supply and efficiency.
We will be striving to be a "corporate group that people choose in the region and that grow beyond the region" in order to be able to meet our stockholders’ and investors’ expectations.
We request your continued cooperation and support into the future.