Message from Top Management
To Our Stockholders and Investors
President & Chief Executive Officer
Allow us to begin by extending our heartfelt gratitude for your continued support of our business activities.
Regarding the consolidated financial result of FY2021, both expenditure and profit decreased. For sales, there was a decrease in the amount of retail electricity sold due not only to increased competition, but also due to the stagnation of production activities in the first half of the year brought about by the effects of COVID-19. Therefore, operating revenue decreased compared to the previous fiscal year due to a decrease in electricity charges revenue.
Regarding ordinary income, while we have made efforts to improve overall management efficiency, profit decreased compared to the previous fiscal year due to the decrease in the amount of retail electricity sold as well as the increase in costs for procuring fuel and electricity due to the tight supply and demand for electricity during winter.
Regarding net income attributable to owners of the parent company, profit decreased compared to the previous fiscal year, when the entire reserve for depreciation of nuclear power generation work was drawn down, as a result of recording the provision of allowance for doubtful accounts as extraordinary losses for some receivables affected by the tight supply and demand for electricity as well as increasing market prices.
Based on our policy of implementing dividends in overall consideration of a mid- and long-term viewpoint and not merely the results for a single fiscal year, we have paid out ¥25 per share as the year-end dividends.
As for the situation at hand, while competition for retail electricity becomes ever fiercer, efforts aimed at achieving a decarbonized society are also accelerating, due to the national government's "2050 Carbon Neutral Declaration" of last year.
In order to respond to such demands from society regarding the economic and environmental properties of electricity, we have pressed forward with investment in Shimane Nuclear Power Station Units 2 and 3 as well as Misumi Power Station Unit 2, and efforts for the replacement of aging thermal power facilities, against the background of considering the historical environment of low interest.
We hope to utilize these large power sources which will be activated in the future to the greatest extent possible as we deliver our electricity to even more customers, as well as cut CO2 emissions and contribute to solving global warming. Furthermore, we will engage in the research and development of decarbonization technology in order to successfully become carbon neutral by 2050.
In addition to these efforts to strengthen and evolve our existing businesses, we will also work to expand revenue in new business areas having ensured financial soundness as well as to develop an environment where our human resources, the basis of our business activities, can succeed, and by doing so, we will achieve our group corporate vision "ENERGIACHANGE 2030."
Our business environment is changing at dizzying speeds, including not only efforts for decarbonization but also social and economic changes brought about by COVID-19 as well as digital transformation. However, we aim to quickly notice the needs for achieving a sustainable society and then answer those needs, and by doing so, work toward sustainable corporate value growth of our group.
We would like to ask our stockholders and investors for their continued understanding and support.