Annual Report 2013

Transcription

Annual Report 2013

2-5, Marunouchi, Takamatsu, Kagawa 760-8573, Japan
Tel +81-87-821-5061
URL http://www.yonden.co.jp/
SHIKOKU ELECTRIC POWER
Yonden Group Annual Report 2013
2013
Yonden Group Annual Report
Business and CSR Activities
Year ended March 31, 2013
This report was printed on FSC®-certified paper using vegetable oil ink and a waterless printing process.
Printed in Japan
Contents
2
Financial Highlights
4
Yonden Group Vision
5
Yonden Group’s CSR
Activity Policies
6
CSR Action Plans
8
A Message from the President
10
An Interview with the President
15
Business Activities
16 Electric Power Business
Taking on the Challenge of Creating
26 New Added Value
28
CSR Activities
29 Promoting Compliance
Advancing Environmental
30 Preservation Activities
34 Practicing Transparent Management
35 Fostering Employee Motivation
Coexisting in Harmony
38 with Communities
40 VOICE
42
Corporate Governance
44
Board of Directors /
Audit & Supervisory Board Members
45
Main Communication Methods at a Glance
46
Third-Party Opinion
47
78
Financial Section
Editorial Policy
Shikoku Electric Power Company (SEPCO) has previously published
its annual report and CSR*1 report separately. For the fiscal year
ended March 31, 2013, and onward, these two reports will be integrated into a single report and published under the title “Yonden
Group Annual Report.” This was done in recognition of the importance of providing a comprehensive explanation of both our financial
activities and our CSR activities. We hope this will enable stakeholders to better understand the business operations of the Shikoku
Electric Power Group.
For more-detailed data on SEPCO’s environmental preservation
activities that could not be included in this report, please refer to
our website.
Reporting Period
This report covers activities from the fiscal year ended March 31,
2013. More-current information leading up to the publishing date of
this report has also been included.
Scope of Reporting
This report covers SEPCO and its subsidiaries and affiliated companies.
(For more information, please refer to Subsidiaries and Affiliated
Companies on page 79.)
Reference Guidelines for
Presentation of Non-Financial Information
Global Reporting Initiative (GRI) Sustainability Reporting Guidelines
Version 3.0 (G3)*2
Environmental Reporting Guidelines (2012 version), Ministry of the
Environment of Japan
Publication Date
The end of August of each year
Contact Information
Shikoku Electric Power Company
Corporate Planning Group, Corporate Planning Dept.,
General Planning Division
TEL: +81-87-821-5061 (Receptionist) FAX: +81-87-825-3018
Email: [email protected]
*1 Corporate social responsibility
*2 The Global Reporting Initiative is a non-profit organization (NPO) headquartered in the Netherlands
that is devoted to formulating and standardizing international guidelines for sustainability reports. A
number of organizations, including companies, NPOs, accounting federations, investment institutions, and labor unions, participate in the initiative, which has been active since fall 1997.
Corporate Information
78 Organization
79 Subsidiaries and Affiliated Companies
80
Corporate History
81
Corporate Data and Stock Information
“Yonden” is the nickname used to refer to Shikoku Electric Power. This name is
well established and commonly used in the Shikoku area. “Yon” is another reading for the Chinese character for four, which is also used in “Shikoku,” and “den”
is a reading for one of the Chinese characters in the word for electricity.
Caution Regarding Business Forecasts and Forward-Looking Statements
In addition to historical facts regarding Shikoku Electric Power Company and its subsidiaries
and affiliated companies, this report contains business forecasts and other forward-looking
statements. These statements are based on our assumptions and judgments in consideration
of the information available at the time, and are therefore subject to risks and contain an
element of uncertainty. It is also possible that such forecasts will be revised at a later date
in light of changes in the operating environment or other underlying assumptions for the
forecasts. We ask that readers please take these factors into consideration.
Aiming to be a Multi-utility Corporate Group
Supporting Work and Life
The Shikoku Electric Power Group supplies electric power to customers in the Shikoku region. Since the
establishment of the Company in 1951, we have continued to fulfill the fundamental mission at the core of
our electric power business of contributing to regional development through the stable supply of low-cost,
high-quality electricity. At the same time, we are also dedicated to helping to improve the lifestyle and culture
of the residents of the Shikoku region through our various business activities.
Japan
Shikoku Region
Shikoku Electric Power (As of March 31, 2013)
Area
Number of Contracts
2.87 million
Power Stations
Substations
65
208
Electricity Sales
Converter Station
28.4
1
Distribution Lines
(Power line length)
166,299 km
18,793
km²
Population
3.93
Island of Shikoku
million people
billion kWh
Transmission Lines
(Circuit length)
6,374 km
1
Financial Highlights
Operating Revenues / Operating Income (Loss) / Net Income (Loss)
Billions of yen
Billions of yen
800
561.7
400
80
40
0
0
(42.8)
(400)
(40)
(50.3)
(800)
2003
2004
Operating revenues
2005
2006
Operating income (loss) (right scale)
2007
2008
2009
2010
2011
(80)
2012
Net income (loss) (right scale)
FY
Cash Flows
Billions of yen
200
56.6
100
15.7
0
(66.2)
(100)
(200)
2003
2004
2005
Net cash provided by (used in) operating activities
2006
2007
2008
Net cash used in investing activities
2009
2010
2011
2012
FY
Net cash (used in) provided by financing activities
Interest-bearing Debt / Shareholders’ Equity Ratio
Billions of yen
%
40
800
734.6
600
30
20.6
400
20
200
10
0
2003
2004
Interest-bearing debt
2005
2006
2007
2008
2009
2010
2011
2012
0
Shareholders’ equity ratio (right scale)
FY
Data on Electric Power Business
Volume of Electricity Sold
Million kWh
40,000
1,027
30,000
17,785
20,000
10,000
0
9,625
2003
Lighting
2
2004
Power
2005
2006
Sales to other utility companies
2007
2008
2009
2010
2011
2012
FY
Capital Investment / Depreciation Expense
Billions of yen
120
90
69.4
63.9
60
30
0
2003
Capital investment
2004
2005
2006
2007
2008
2009
2010
2011
2012
FY
Depreciation expense
Operating Income Margin / Return on Assets* / Return on Equity
%
16
8
0
(3.4)
(8)
(16)
(9.0)
2003
2004
Operating income margin
2005
2006
Return on assets
2007
2008
2009
2010
2011
(14.0)
2012
Return on equity
FY
* (Ordinary income (loss) + Interest expense) / Average total assets
Dividend per Share / Dividend Payout Ratio / Profit Returned to Shareholders
Yen%
60
120
45
90
30
60
15
30
0
2003
Dividend per share
2004
2005
2006
Dividend payout ratio (right scale)
2007
2008
2009
2010
2011*
2012*
0
FY
Profit returned to shareholders (right scale)
* Dividend payout ratio and profit returned to shareholders for the fiscal year ended March 31, 2012 and 2013, is not provided due to the recording of a net loss.
Electric Power Generation and Purchasing by Power
Million kWh
50,000
40,000
662
2,397
7,795
30,000
20,000
16,400
10,000
3,706
0
Hydro
2003
Nuclear
2004
Coal
2005
Fuel oil
2006
LNG
2007
Renewable energy
2008
2009
2010
2011
2012
FY
3
Yonden Group Vision
Drive Happiness Forward
The Shikoku Electric Power Group (“Yonden Group”) is committed to driving forward the happiness of customers
and community members alike. This desire is shared among all employees, and we are avidly working to contribute
to the development of a safer, more secure, and more comfortable regional society as a multi-utility corporate group
supporting work and life.
Mission and Meaning of the Yonden Group
The Yonden Group is committed to the continuous provision of high-quality services, centered on energy,
that interconnect with the lives that people lead. In this way, the Yonden Group contributes both to comfortable,
safe, and reliable living and to the Shikoku region’s development.
Three Key Points in Realizing the Yonden Group Vision
Eco-friendly
Community coexistence
Creating the future
The Yonden Group of the Future
Aiming to be a Multi-utility Corporate Group
Supporting Work and Life
Integrated Energy
We aim to evolve and grow as the most trusted partner for customers in the
Shikoku region, and as a corporate group capable of providing one-stop access
to a full range of integrated energy, telecommunications, and business and
lifestyle support services.
Three Business
Domains
Telecommunications
Three Challenges to Realizing Our Group Vision
1 Contribute to realizing a low-carbon energy society driven by electricity
ursue the best mix of power sources appropriate to the era along with safe and
P
dependable operations
Form reliable electric power networks
Promote a further “shift to electricity” in the residential and industrial sectors
2 Continually strive to create added value beyond the core electric power business
3 Foster the human resources that will pave the way forward
4
Business and
Lifestyle Support
Yonden Group’s CSR Activity Policies
In accordance with the Yonden Group Action Charter, the Group has defined seven priority areas for the focus of its
CSR activities, which it has dubbed the 7 CSR Pillars.
Yonden Group Action Charter
The Yonden Group is committed to its basic stance: coexisting with the community, moving forward with the community, and prospering
with the community. In accordance with this stance, we recognize the importance of strengthening the bonds of trust with stakeholders
who play an important role in supporting our operations and fulfilling our responsibility to the greater society, which is crucial to our
ongoing growth and progress of the Group.
SEPCO has defined the following principles to serve as guidelines for its directors and employees in practicing corporate activities
that emphasis compliance, corporate ethics, and transparency. Based on these principles, the Group will strive to live up to the high
expectations of society and gain greater levels of trust.
Our Commitment to Our Customers
We are committed to providing society with useful products
and services, with full consideration for public safety, while
placing our number one priority on customer satisfaction.
We provide safe, stable, reliable, and low-cost electric energy
according to our social mission as an electric power supplier.
Our Commitment to Our Investors
We are dedicated to improving our corporate value continuously over the long term while operating our business in a
sound and transparent manner.
We are committed to the proactive disclosure of accurate
information to our investors.
Our Commitment to Our Suppliers
We treat our suppliers as good and reliable partners of equal
standing with whom we engage in free and fair trade.
Our Commitment to Our Employees
We respect the personality and individuality of each employee.
We are committed to providing safe and comfortable working
conditions and to creating a cheerful and open corporate culture.
Our Commitment to Society
As a full member of society, we shall contribute to the progress of the communities.
We shall maintain sound and normal relations with statesmen
and government administrators.
We shall stand firmly against antisocial forces that menace
civil society.
Our Commitment to the Planet
We recognize the importance of environmental preservation
and shall strive to minimize the environmental impacts caused
by our business operations.
The 7 CSR Pillars
SEPCO has defined seven priority areas for the focus of its
CSR activities, which have been dubbed the 7 CSR Pillars.
The Group is applying the PDCA (plan–do–check–act) cycle to
ensure the effectiveness of its CSR activities in these areas.
Coexisting in
Harmony with
Communities
Fostering
Employee
Motivation
Realizing a Stable
Electric Supply
Promoting
Compliance
The 7 CSR Pillars
Entrenching
a Customer-First
Mindset
Advancing
Environmental
Preservation
Activities
Practicing
Transparent
Management
5
CSR Action Plans
The Yonden Group establishes CSR action plans to guide its CSR activities. We are also communicating these activities to a wide range of stakeholders through this report.
We create a wide range of communication opportunities, and the valuable opinions and requests gained on these
occasions are taken into consideration in our CSR activities. We also confirm the progress of each CSR activity.
The findings of these efforts are consequently incorporated into action plans for subsequent years to enhance future
CSR activities.
Activity Areas
Realizing a Stable
Electric Supply
Major Activities in the Fiscal Year Ended March 31, 2013
Implemented safety measures at the Ikata Nuclear Power Station including additional measures based on new discoveries
Rationalization of facilities
Stable, efficient operation
Steadily advanced plans to replace the facilities of Unit No. 2 of the Sakaide Thermal Power Station
chieved stable supply of electricity by delaying inspections at thermal power plants and optimally managing
A
generation facilities during periods of a tight supply and demand situation
Steadily advanced countermeasures for aging facilities to maintain the reliability of supply through our power network
Technical tradition
Passed on technical expertise through employee education and training programs and on-the-job training
Disaster countermeasures
Prevention of and quick restoration
after blackouts
ormulated and instituted additional earthquake countermeasures in preparation for possible Tonankai and
F
Nankai Trough earthquake
Promoting Compliance
Instituted e-learning and other educational programs for all employees
Compliance
Stringent confidential information security
Comprehensive information security
Advancing
Environmental
Preservation Activities
Practicing Transparent
Management
Global warming prevention measures
Regional environment
preservation activities
eld meetings of the Compliance Council of the Shikoku Electric Power Group to promote Groupwide
H
compliance awareness
Instituted e-learning and other educational programs for all employees to strengthen confidential information
management through increased awareness
Formulated action plans for realizing Groupwide information security improvements
Implemented measures geared toward achievement of CO2 emission reduction goals
Complied with environmental laws and regulations
onducted environmental assessments related to plans to replace the facilities of Unit No. 2 of the Sakaide
C
Thermal Power Station
Promotion of a recycling-based society
Promoted effective use of waste by utilizing coal ash and recycling remains of demolished structures
Environmental management
Held environmental lectures, waste management training, and other environmental training programs
Communication with society
Conducted various environmental communication activities during our unique Groupwide Environmental Month
Strengthening of corporate governance
Implemented self-evaluations of work activities
Promoted appropriate risk management
Substantial information disclosure
Improvement of corporate value
through IR activities
Entrenching a
Customer-First Mindset
Shortened periods of accidental blackouts by replacing aging facilities and conducting effective monitoring and inspections
Actively disclosed information related to the Ikata Nuclear Power Station
Conducted proactive information disclosure, including negative information
Held explanatory forums regarding the Company
Disclosed information for investors and analysts
Effectively proposed solutions to customers’ needs
Customer-first mindset
Supported customers by proposing ways of using electricity more effectively
Continued to conduct hands-on training to accelerate initiatives to improve customer satisfaction
Acquired over 140,000 Pikara Optical Cable Internet Service contracts
Fostering Employee
Motivation
Respect for employee individuality
and diversity
Development of a comfortable workplace
environment
with Communities
Rehired 188 senior employees (employees who will continue to work until 65, as of March 31, 2013)
Instituted measures to reduce excessive work hours and appropriately manage work hours
Implemented initiatives to promote work-life balance among employees
Formation of a favorable relationship
between management and employees
Increased meeting and information exchanges between management and employees to address issues together
Proactive promotion of employee education
Conducted rank-based training and business leader education programs as planned
Stringent occupational health
and safety measures
Actively promoted Groupwide safety activities
Proactive community
development activities
Harmonic coexistence with communities
Support for the education of the next generation
6
eld forums for supporting female employees and implemented other measures to raise employee awareness
H
regarding female employees’ career development efforts
Provided special health examinations and healthcare guidance throughout the Group
Conducted initiatives to attract businesses to the Shikoku area together with municipal governments
Promoted collaboration between industry, government, and academia
Supported tourism promotion efforts
Promoted harmonic coexistence with communities at all operating sites
Conducted communal activities
Provided energy education for the next generation
Activity Plans and Goals for the Fiscal Year Ending March 31, 2014
Steadily implement safety measures at the Ikata Nuclear Power Station in response to new safety standards
Thoroughly manage safety and quality when constructing replacement facilities at Unit No. 2 of the Sakaide Thermal Power Station
Provide stable supply of electricity in consideration of the restart of the Ikata Nuclear Power Station
Strengthen foundation for providing stable supply of electricity by implementing countermeasures for aging facilities in power network and conducting appropriate maintenance
Implement necessary measures to facilitate grid connections from solar and wind power generation systems
Conduct concentrated onsite technical training for young employees to foster quick development and improve onsite capabilities
Continue implementing earthquake countermeasures in preparation for possible Tonankai and Nankai Trough earthquake
Conduct appropriate countermeasures for aging distribution facilities and improve technical capabilities pertaining to maintenance
Conduct compliance training in consideration of social changes
Further promote Groupwide compliance
Institute e-learning and other educational programs for all employees to strengthen confidential information management through increased awareness
Reconfirm confidential information management measures of subcontractors
Steadily institute measures to promote information security improvements throughout the Group
Formulate and institute further CO2 emissions reduction measures in consideration of trends in government energy and environmental policy
Remain compliant with environmental laws and regulations
Promote effective use of waste
Conduct efficient, effective environmental education
Conduct efficient, effective environmental communication activities
Continue implementing self-evaluations of work activities
Promote appropriate risk management
Continue actively disclosing information related to the Ikata Nuclear Power Station
Conduct proactive information disclosure, including negative information
Hold explanatory forums regarding the Company and tours of power plants and other facilities
Disclose information for investors and analysts
Conduct various support activities to improve customer satisfaction
Offer proposals and consulting in response to a wide range of energy-use needs
Advance Pikara Optical Cable Internet Services on a Groupwide basis
Steadily advance initiatives in the business and lifestyle support business
Enhance initiatives for supporting female employees and educate and appoint female managers
Actively utilize senior employees
Continue working to reduce excessive work hours
Improve trust between management and employees by enhancing meetings and information exchanges
Systematically implement training programs to foster independent employees
Actively promote Groupwide safety activities
Facilitate health maintenance and improvement through healthcare guidance and other initiatives
Conduct activities to help invigorate the region
Continue promoting harmonic coexistence with communities at all operating sites
Continue providing energy education to the next generation
7
A Message from the President
8
Overcoming the management issues we are faced with and building
the foundations for ongoing growth will be positioned as important
management priorities. The entire Group will unite as we work
to accomplish these goals.
The Shikoku Electric Power Group is striving to accomplish its
cooperate with these inspections in all earnestness with the hopes
fundamental mission of contributing to regional development
of quickly being judged compliant with the new standards. At the
through the stable supply of low-cost, high-quality electricity.
same time, we will work to gain the understanding of the sur-
Recently, the operating environment for the electric power busi-
rounding community by thoroughly explaining the plant’s safety
ness has been undergoing significant changes in light of the
measures and the results of safety inspections.
accident at the Tokyo Electric Power Company, Incorporated’s
Fukushima Daiichi Nuclear Power Plant. Shikoku Electric Power
implementation of concrete reforms to systems for the electric
Company (SEPCO) has also felt the impacts of these changes. We
power business are being considered from a medium- to long-term
have been forced to halt operations at all units of the Ikata Nuclear
perspective. It will therefore be necessary that we remain forward
Power Station, which has made for a tighter supply and demand
thinking and respond to such changes preemptively.
balance for electricity. In addition, the subsequent need to purchase
greater quantities of fuel for thermal power generation has led to a
issues we are faced with and building the foundations for ongoing
deterioration in our situation regarding income and expenditures
growth will be positioned as important management priorities for
as well as our financial position. As a result, we continue to face
the fiscal year ending March 31, 2014. The entire Group will unite
dire straits.
as we work to accomplish these goals.
In order to overcome this adversity, we have aggressively
At the moment, revisions to government energy policy and the
In consideration of these factors, overcoming the management
I would like to ask our stakeholders for their continued under-
advanced initiatives to improve managerial efficiency. However,
standing and support of the Shikoku Electric Power Group as we
the impacts of the long-term halt of operations at the Ikata Nuclear
take on these challenges.
Power Station have weighed heavy. Judging that this situation is
likely to impact our ability to provide a stable supply of electricity,
separate annual report and CSR report into a single report, pub-
we submitted an application to the Ministry of Economy, Trade
lishing it under the title, “Yonden Group Annual Report.” This was
and Industry on February 20, 2013, to raise electricity rates.
done in recognition of the importance of providing a comprehensive
Approval was later received on August 6, 2013. This is a measure
explanation of both our financial activities and our CSR activities.
that had been positioned as a last resort. In calculating these new
We hope this will enable readers to better understand the business
rates, we accounted for our efforts to realize the maximum level of
operations of the Shikoku Electric Power Group.
operating efficiency. Going forward, we will consider all possible
options as we pursue even higher levels of managerial rationality
ing communications with our various stakeholders. I hope that you
and efficiency.
will take the time to read through it.
In closing, for this year, we have integrated our previously
This integrated report was published with the goal of deepen-
If we are to stabilize both the supply of electricity and our
management foundation, it will be absolutely essential that we
August 2013
restart operations at the Ikata Nuclear Power Plant at the earliest
possible date. To accelerate this process, on July 8, 2013, we
submitted an application to the government of Japan requesting
that they confirm the conformity of Ikata Unit No. 3 with New
Safety Standard for Nuclear Power Stations. Together with this
application, we also submitted the results of our own assessments
Akira Chiba
evaluating the unit’s conformity with these standards. The unit is
President and Director
currently undergoing government safety inspections. We will
9
Akira Chiba
Q
A
What are your thoughts on the fiscal year ended March 31, 2013?
Amidst the difficult conditions created by the prolonged halt of operations at the Ikata Nuclear Power Station, the
supply and demand situation for electricity remained tight, and we recorded a rise in fuel and power purchases. These
factors resulted in a significant deterioration in income figures and our financial position. Throughout the year, we
worked unceasingly to respond to this unprecedented adversity.
As nuclear power plants remain out of commission, all of Japan
is being plagued by an ever tighter supply and demand balance
to the impacts of energy conservation efforts as well as the decline
for electricity. We are also feeling these pressures as we are still
in sales of electricity to other power companies, both of which
unable to predict when operations will resume at the Ikata
affected us to a larger extent than in the previous fiscal year. In
Nuclear Power Station. As such, there is significant concern as to
addition, we had to purchase larger volumes of thermal power fuel
whether or not our supply capabilities will be sufficient going
and electricity to compensate for the inability to operate our nuclear
forward. In order to address this situation, we implemented a
power plants. The expenses associated with these purchases
number of initiatives on both the supply and demand sides of
resulted in a 4.4% increase in operating expenses, to ¥612.1
operations. On the supply side, we delayed legally mandated
billion. As a result, we were forced to record a net loss of ¥42.8
periodic inspections at thermal power plants and purchased sur-
billion, our greatest loss to date.
plus electricity from companies outside of the power business.
On the demand side, we requested that customers conserve elec-
we will not be issuing a dividend for the fiscal year under review,
tricity, introduced pricing systems that provide discounts coin-
ended March 31, 2013. This is the first time we have not issued
ciding with energy savings realized during the high-demand
dividends in 61 years, with the only other such year in our history
summer months, and developed a concrete plan for scheduling
being 1951, the year of our founding. I am also regretful that we
systematic blackouts under emergency conditions. In these
must report our decision to raise electricity rates, which was a
ways, we fought to stabilize the electricity supply.
necessary move to maintain a stable supply of electricity.
At the same time, we pursued increased rationality and effi-
In light of this harsh reality, I am very sad to inform you that
In the fiscal year ending March 31, 2014, we will work to
ciency throughout all areas of management to address the rise in
quickly restart Ikata Unit No. 3. This will be the most important
costs associated with implementing these measures. However,
task during the year, and it will be placed as our top priority. This
the impacts of the prolonged halt of operations at the Ikata
is because restating Unit No. 3 will be necessary to stabilizing
Nuclear Power Station weighed heavy, and performance suffered
both the supply of electricity and our financial base.
over the year as a result.
10
Net sales were down 5.1% year on year, to ¥561.7 billion, due
While the operating environment for the electric power business is
undergoing drastic change, we will continue endeavoring to fulfill our
fundamental mission of contributing to regional development through
the stable supply of low-cost, high-quality electricity.
Q
A
What are your plans to improve the situation regarding income and expenditures going forward?
The halt of operations of all units at the Ikata Nuclear Power Station is resulting in a substantial rise in fuel and power
purchases. As such, restarting operations at the Ikata Nuclear Power Station will be of utmost importance in improving
the situation regarding income and expenditures. For this reason, we are working to resume operations at the earliest
date possible. At the same time, we are pursuing thorough reductions in costs and improvements in operational efficiency as well as in managerial rationality and efficiency to lower expenses and outlays.
In the fiscal year under review, purchases of thermal power fuel
Through these efforts, we aim to begin turning a profit once
and electricity to compensate for the halt of operations of all
again as early as possible. In addition, we will advance measures
units of the Ikata Nuclear Power Station resulted in an increase
geared toward resuming operations at Ikata Unit No. 1 and Unit
in expenses that greatly exceeded ¥100.0 billion for the year. In
No. 2, and target drastic improvements in the situation regarding
response to this rise, we worked to improve managerial rationality
income and expenditures and in our financial position.
and efficiency.
However, we were unable to absorb the impacts of the rise in
fuel and power purchases. Judging that the current situation
might inhibit our ability to provide a stable supply of electricity,
Summary of Approved Electricity Rate Increases
Price increase percentage and unit price increase
we made the difficult decision to raise electricity rates. The
Price Increase (%)
Unit Price Increase
amount of rate increases has been calculated in consideration of
Regulated Sector
7.80%
¥1.59 per kWh
the benefits of future efficiency improvements and the restart of
Liberalized Sector
14.72%
¥1.93 per kWh
Average
11.15%
¥1.80 per kWh
operations at Ikata Unit No. 3 in July 2013.
In pursuit of higher managerial efficiency, we will work to
significantly reduce costs, particularly personnel expenses, repair
costs, and other expenses. I realize that this is an exceptionally
high hurdle. However, we will utilize all possible options, such as
increasing the ratio of materials procured by holding open bids,
and unite with the aim of meeting this goal.
At Ikata Unit No. 3, we have finally begun submitting applica-
tions to restart operations, which was delayed following the institution of new regulatory standards. Going forward, we will cooperate
with government safety inspections in all earnestness with the
hopes of quickly being judged compliant with the new standards.
Over the foreseeable future, our efforts to improve profitabil-
ity will be centered on the pursuit of higher efficiency, electricity
rate increases, and the restart of operations at Ikata Unit No. 3.
Cost breakdown
Assumptions
(FY2013–FY2015 average)
Billions of yen 492.4 Personnel
47.8
expenses
500
400
128.0
300
64.2
63.3
200
100
55.4
28.0
105.7
Fuel costs
Electricity
purchases
Repair costs
Depreciation and
amortization
Business compensation
Other*1
Electricity Sales Volume (billion kWh)
27.5
Crude Oil Price*2
(US$ per barrel)
Exchange Rate*2
(¥ per US$)
Nuclear Power
Usage Percentage*3
(%)
33.8
Business
Compensation Rate
(%)
2.9
Employees Covered
by Business Expenses
114
80
6,184
0 Approved cost
(¥17.89 per kWh)
*1 Taxes and public dues + Back-end nuclear power costs + Other expenses
*2 The crude oil price and exchange rate are based on the prices and rates of foreign trade
statistics for the three months immediately prior to the application (average values between
October and December 2012).
*3 The nuclear power usage percentage assumes the resumption of operations at the Ikata
Nuclear Power Station in July 2013.
11
We will create new value in various areas that will support future growth
as we strive to transform and grow to become a multi-utility corporate group
supporting work and life.
Q
New regulatory standards have been imposed on nuclear power plants. In light of these standards,
how are safety measures progressing at the Ikata Nuclear Power Station and when do you expect
operations to be resumed at the plant?
A
SEPCO began implementing safety measures immediately after the accident at the nuclear power plant in Fukushima
Prefecture in accordance with the directions of the government of Japan. We also began conducting our own measures,
including diversifying the range of external power sources we employ. These and other initiatives are being conducted
on an ongoing basis as we pursue higher levels of safety and reliability at the Ikata Nuclear Power Station. At SEPCO,
we believe that there is no end goal for safety measures. In accordance with this belief, we will achieve compliance with
the latest regulatory standards, and work to quickly and accurately reflect new discoveries into our safety measures.
In this manner, we will push forward on our never-ending quest for improved safety and reliability.
Our most fundamental mission is to provide customers with a
stable supply of low-cost, high-quality electricity. In order to
Regulatory Commission (NRC) to determine its conformity with the
accomplish this, it will be necessary to utilize nuclear power to a
new standards. These inspections are unprecedented, and it is dif-
certain extent, though this of course must be done only after
ficult to predict the end result. Nevertheless, we will respond quickly
guaranteeing safety.
and accurately to the inspections with the aim of having Unit No. 3
judged compliant with the new standards as soon as possible.
This means that we must achieve higher levels of safety and
reliability at the Ikata Nuclear Power Station. To this end, SEPCO
began implementing safety measures immediately after the acci-
Station will require the understanding of the community. To gain
dent at the nuclear power plant in Fukushima Prefecture in
this understanding, SEPCO is actively conducting its unique
accordance with the directions of the government of Japan. We
brand of communication activities, including information disclo-
also began conducting our own measures, including diversifying
sure through a method known as the “Ikata System” and visiting
the range of external power sources we employ and achieving
community members living within a 20 km radius of the plant.
earthquake resistance twice as high as our standards, which have
Going forward, we will thoroughly explain the plant’s safety mea-
been advanced on an ongoing basis. In addition, we endeavored
sures and results of safety inspections with the aim of gaining
to predict the safety measures that would be required under the
the understanding of the surrounding community.
new standards and worked to preemptively address these areas to
the greatest extent possible. One such area was the implementa-
No. 1 and Unit No. 2. We are advancing initiatives to achieve
tion of measures for limiting the release of r adioactive materials.
conformity with the new standards so that related applications
As a result, Ikata Unit No. 3 has already completed all measures
can be submitted at the earliest date possible.
deemed necessary to achieve conformity with the latest regulatory standards, and we submitted applications to the government
on July 8, 2013, asking that they confirm this conformity.
12
Currently, Ikata Unit No. 3 is being inspected by the Nuclear
We also understand that restarting the Ikata Nuclear Power
At the same time, we aim to sequentially restart Ikata Unit
Q
Reforms to systems for the electric power business are planned to begin advancing in systematic
steps. How will you respond to these changes?
A
Competition is anticipated to grow increasingly intense going forward. Nevertheless, SEPCO will remain true to its
fundamental mission of contributing to regional development through the stable supply of low-cost, high-quality
electricity. Accordingly, we will continue to enhance our services and strengthen competitiveness to maintain our
standing as the company customers choose.
The Policy on Electric System Reform is set to advance in sys-
Electricity plays a key role in supporting social infrastructure.
tematic steps going forward. Three main policies for these
Should these reforms fail, it is possible that the stable supply of
reforms have also been announced: (1) the development of wide-
electricity will be disrupted, which would strike a devastating blow
range system operators, (2) the total deregulation of electricity
to both economic activity and people’s lives. When instituting
sales, and (3) the establishment of more-neutral distributers.
these reforms, it will be necessary to address technological issues
The goal of all of these reforms is to develop electricity sys-
and the funding needs of power companies at each step. This
tems that are more beneficial for customers and thereby secure a
must be done after careful consideration of the opinions of experts
stable supply of low-price electricity. We therefore believe that
and business operators. It will then be important to respond flex-
these changes coincide with our fundamental mission.
ibly to any issues uncovered during this process. I hope that the
No matter how the operating environment may change, we will
authorities will be both thorough and realistic in advancing these
remain steadfast and forward-thinking as we develop new services
reforms in a step-by-step manner. Based on our perspective as a
and strengthen competitiveness. In these manners, we will work
power company, we intend to continue contributing to the devel-
to maintain our standing as the company customers choose.
opment of the detailed structures of these systems.
Q
What initiatives will be implemented to achieve future growth?
A
We will create new value in various areas that will support future growth as we strive to transform and grow to become
a multi-utility corporate group supporting work and life. In this quest, we will fully leverage the collective strength of
the Shikoku Electric Power Group.
As a corporate group that is firmly rooted in the Shikoku region,
customer needs. Overseas, meanwhile, we conduct generation
the Shikoku Electric Power Group has continued to foster trust-
operations in Qatar and Oman while also offering consulting
based relationships with its customers in this region while also
regarding energy saving and other matters in emerging countries,
cultivating its brand image. By leveraging these advantages, we
particularly those in Asia. In the telecommunications business,
strive to provide one-stop access to a full range of integrated energy,
we provide high-volume, high-speed optical fiber telecommuni-
telecommunications, and business and lifestyle support services.
cations services. As information services increasingly become a
Working to accomplish this, in the integrated energy business,
fixture in society, there is a rising need for methods of storing
we sell liquefied natural gas (LNG) in accordance with diverse
larger amounts of data and managing risks related to this data by
13
dispersing the locations where it is stored. This has led to increased
demand for data centers. To respond to this demand, we are aggres-
ment resources to the exploration of high growth potential busi-
Going forward, we will prioritize the allocation of manage-
sively advancing preparations for the launch of our data center
ness fields. In this manner, we will enter into new business fields
operation business by constructing one of Japan’s largest data
and develop revolutionary energy services that take advantage of
centers in Kagawa Prefecture, which is known for having a relatively
telecommunications technologies.
low risk of natural disasters. We hope to begin providing data center
services in December 2013. In the business and lifestyle support
strict legal compliance, and environmental preservation and
business, we are leveraging the trust and technological capabilities
conduct other CSR activities as we realize these will form the
of the Group to conduct a nursing care business and private finance
foundations for the ongoing growth and development of the
initiatives (PFIs). In these ventures, we provide fee-based nursing
Group. Through these efforts, we aim to maintain our standing as
homes in consideration of the aging population trend in Shikoku,
a corporate group that is trusted, highly evaluated, and chosen
and also take part in conducting local government projects such as
by the local community and stakeholders alike.
At the same time, we will promote high corporate ethics,
those related to schools and school lunch centers.
Q
What are your policies for future shareholder returns?
A
SEPCO’s basic shareholder returns’ policy is to issue stable dividend payments. With regard to the timing of the resumption of dividends and payment amounts thereafter, this decision will be made based on comprehensive consideration of
factors such as performance, financial position, and medium- to long-term projections for the operating environment.
SEPCO’s basic shareholder returns’ policy is to issue stable divi-
order for dividends to be resumed, we must first be in a position in
dend payments. In consideration of this policy, decisions regarding
which we can expect profits to be generated on an ongoing basis.
dividend payments are made based on comprehensive consider-
ation of factors such as performance, financial position, and
we achieve gradual recovery in the shareholders’ equity ratio,
medium- to long-term projections for the operating environment.
which has fallen to the level of around 20%. Going forward, we
will consider the possibility of shareholder returns based on a
Looking at our current situation, the prolonged halt of operations
at the Ikata Nuclear Power Station has placed us in a very difficult
comprehensive analysis of such factors.
position in terms of income and expenditures. For this reason, we
have decided not to issue an interim dividend for the fiscal year
holders and other investors to look at SEPCO from a medium- to
ending March 31, 2014. Whether or not a year-end dividend is to be
long-term perspective. I hope we can expect your continued sup-
issued will be decided at a later date. Nevertheless, SEPCO hopes to
port and understanding into the future.
resume dividend payments as soon as possible. We realize that in
14
The resumption of dividend payments will also require that
As we face these difficult times, I would like to ask our share-
Business Activities
As its mission, the Yonden Group is committed to the continuous provision of highquality services, centered on energy, that interconnect with the lives people lead. In
this way, the Yonden Group contributes to comfortable, safe, and reliable living and
to the Shikoku region’s development. The Group implements business management
based on the view its business activities themselves fulfill a social responsibility.
This section provides an introduction to the business activities of the Yonden Group and an integrated account of
how they relate to the seven pillars of CSR initiatives.
Coexisting in
Harmony with
Communities
Fostering
Employee
Motivation
Realizing a Stable
Electric Supply
Promoting
Compliance
The 7 CSR Pillars
Entrenching
a Customer-First
Mindset
Advancing
Environmental
Preservation
Activities
16
Electric Power Business
18 Nuclear Power Generation
22 Thermal Power Generation
23 Renewable Energy
Practicing
Transparent
Management
24 Power Network
Sales Activities Reflecting
25 a Customer-First Mindset
26
Taking on the Challenge of
Creating New Added Value
15
Business Activities
Electric Power Business
In a resource-poor country like Japan, over the long term, it is absolutely
essential to realize the 3Es (Environmental preservation, Energy security,
and Economic growth), the three basic goals of national energy policy
and of the electric power business.
Shikoku Electric Power realizes a stable, low-cost electricity supply by
having established an energy mix that is not over dependent on any one
fuel source and by responding to changes in demand through the maintenance of an efficient balance between supply and demand that takes into
consideration the characteristics of different power sources.
Major Service Areas and the Company’s
Facility Locations
Hydro Power Stations
22 Thermal Power Generation
23 Renewable Energy
24 Power Network
Sales Activities Reflecting a
25 Customer-First Mindset
Breakdown of Electric Power Generation
and Purchasing by Power Source
Capacity of Electric Power Generation
and Purchasing by Power Source
1,142 MW
Renewable Energy
Hydro
Renewable Energy
4 locations
3,797 MW
662MkWh
(2.1%)
3,706MkWh
(12.0%)
2MW
(0.0%)
Nuclear Power Station
1 location
2,022 MW
Photovoltaic Power
Station
1 location
2.0 MW
Wind Power Station
1 location
0.3 MW
Thermal Power
Stations
58 locations
18 Nuclear Power Generation
Total
Transmission Lines
65 locations
6,963 MW
(Route length)
3,396 km
(Circuit length)
Substations
1 location
1,400 MW
Distribution Lines
(Route length)
45,338 km*
(Power line length)
166,299 km
Thermal
Thermal
26,592MkWh (85.9%)
Coal:
16,400MkWh (53.0%)
Fuel oil: 7,795MkWh (25.2%)
LNG:
2,397MkWh (7.7%)
4,961MW (58.7%)
Coal:
2,270MW (26.8%)
Fuel oil: 2,045MW (24.2%)
LNG:
646MW (7.6%)
(As of March 31, 2013)
Honshu–Shikoku line
[Electric Power
Development Co., Ltd.]
Shikoku Electric Power Facilities
Sakaide 1 2 3 4
Head Office
Takamatsu Branch Office
Hydro Power Station (over 20 MW)
Takamatsu
Asa
Kagawa
Okawa
Naruto
Sanuki
Photovoltaic Power Station
Niihama
Kita-Matsuyama
Nyugawa Branch Office Toyo
Wind Power Station
Transmission Line (500 kV)
Matsuyama
Matsuyama
Substation (over 500 kV)
Saijo 1 2
Head Office
Ozu
Bunsui Daiichi
Omogo
Daisan
Odo
Kagedaira
Hirayama
Anan 1 2 3 4
Kochi
Branch Office
Hiromi
Naharigawa
Muroto
Uwajima
Branch Office
Nakamura
Branch Office
Hirono
Anan
converter
station
Anan–Kihoku DC transmission line
[The Kansai Electric Power Co., Inc.,
Electric Power Development Co., Ltd.]
Kochi
Kokufu
Matsuogawa Daiichi
Other Companies
Awa
Tachibana-wan
Hongawa
Yanadani
Ikata 1 2 3
Ikawa
Naruto–Awaji line
[The Kansai Electric
Power Co., Inc.]
Tokushima Branch Office
Ikeda Branch Office
Matsuogawa Daini
Kawauchi
AC/DC Converter Station
Mishima
Saijo
Matsuyama
Branch Office
Substation (over 187 kV)
16
MW
20,827 MVA
Converter Station
Branch Office
8,455
1,470MW
(17.4%)
MkWh
2,022MW
(23.9%)
6,374 km
208 locations
* Overlapping lines excluded
Hydro
30,959
Nuclear
Environment
3E
Energy
Security
Economic
Efficiency
Energy Mix That Enables Stable Supply
Efficient Balance between Supply and Demand
Japan is only self-sufficient for 4% of its energy. This low rate results
in high exposure to risks associated with rising fossil fuel prices and
an overdependence on certain countries and regions for resource procurement. Renewable energy, such as solar power and wind power, is
susceptible to the weather and other natural conditions, and there is uncertainty regarding the technological and cost aspects of such initiatives.
Looking at this situation, it is clear that, if a stable supply of energy is to be secured into the future, it is absolutely essential to strike
a balance among the 3Es—the three basic goals of energy policy.
Shikoku Electric Power has progressively diversified its energy mix
to include various different fuel sources. As a result, on March 31,
2013, nuclear power, coal, and oil each accounted for around 25%
of our generation capacity; liquefied natural gas (LNG) accounted for
8%; and the remaining 17% came from hydropower. In this manner,
we have established a balanced energy mix. Currently, due to the effect of the accident at the Fukushima Daiichi Nuclear Power Station
(Tokyo Electric Power Co., Inc.), we have stopped all facilities of the
Ikata Nuclear Power Station. However, to maintain and realize the
3Es goal, we believe that utilizing nuclear power, which can be generated in an economically sound and stable manner, to a certain degree
is indispensable, as long as we can ensure its safety.
In regard to our efforts to develop new large-scale generation facilities, we are advancing preparations to replace the facilities of Unit
No. 2 of the Sakaide Thermal Power Station with facilities that utilize
LNG, aiming to have the facilities up and running in 2016, a move
planned even before the Great East Japan Earthquake. Future projects will be considered while monitoring the direction of government
deliberations pertaining to the possibility of revising government energy policy and systems for electric power companies.
As electricity generally cannot be stored, it is necessary to constantly
balance supply with demand. Therefore, we must facilitate the efficient supply of electricity by developing a well-balanced energy mix
consisting of various energy sources with differing characteristics in
terms of operation methods and economic efficiency, which we can
leverage in response to electricity demand fluctuations. In this way,
we are pursuing efficient power supply.
For example, in summer, the season when power consumption is
highest, we primarily utilize economically sound energy sources that
can be generated stably such as nuclear power and natural-inflowtype hydropower. We then respond to supply deficiencies by
using output from thermal power generation, which we can raise and
lower flexibly.
In consideration of supply and demand requirements over the full
year, we conduct periodic inspections of facilities in the spring and
fall months, when electricity demand is low. This allows us to ensure
that electricity can be supplied stably even if an accident or some
other sudden occurrence were to happen.
Electricity Generation by Time of Day (Summer)
Hydropower from
pump-storage facilities
①Used during peak hours
Oil-fired thermal
Hydropower
from reservoirs
LNG thermal
②Fluctuating usage
Thermal power from LNG
and oil used on a fluctuating basis due to ability to
flexibly adjust output
Coal-fired thermal
Natural-inflow-type hydropower
③Base
Economically sound and
stable nuclear power, natural-inflow-type hydropower,
and coal-fired thermal power
used as base
Nuclear
0
5
12
18
24
Quickly producible hydropower from reservoirs and
pump-storage facilities
used during peak hours
Time
Hydropower from
pump-storage facilities:
lectricity generated at night used to pump water into upper reserE
voirs so that it may be released for generation during peak hours
Hydropower from reservoirs:
Reservoirs established and used for generation as necessary
Natural-inflow-type hydropower:
Power generated by diverting river flow through canals
Breakdown of Power Generation by Power Source
%
2
12
100
1973
First oil crisis
(generation
centered on oil)
80
60
1994
Start of Ikata Unit
No. 3 operation
40
Nuclear
1955
Coal
1975
LNG
Fuel oil
1995
Hydro
25
Rise in coal-fired
thermal power
generation
Rise in nuclear
power generation
20
0
2000
Start of
Tachibana-wan
Thermal Power
Station operation
Renewable energy 2010
2011
Sequential halt
of Ikata operation
2012
Stoppage of
all facilities at
Ikata Nuclear
Power Station
Drop in nuclear
power generation
No nuclear
power generated
2011
8
53
0
2012
FY
17
Business Activities
Nuclear Power Generation
Nuclear power generation uses uranium, which is procurable from several
different countries with stable political conditions. This makes the procurement of stable resource supplies one of nuclear power’s advantages.
Nuclear power can also be generated in an economically efficient manner, and
is friendly toward the environment as it does not produce CO2 emissions. In these
ways, nuclear power helps establish a stable supply of low-cost, high-quality
electricity while contributing to the realization of a low-carbon society.
Ikata Nuclear Power Station
Enhancing the Ikata Nuclear Power Station’s Safety and
Pursuing Initiatives to Resume Operations Early
Great East Japan Earthquake. Therefore, we hope to resume nuclear
The Yonden Group’s most important mission is to provide customers
to further enhance the safety and reliability of the Ikata Nuclear
with stable supplies of low-cost, high-quality electricity. To realize this
Power Station and ensure compliance with the new regulatory stan-
mission, we believe that continuing to use a certain amount of nuclear
dards that the Nuclear Regulatory Commission has established. At
power is indispensable. With safety as its overriding premise, nuclear
the same time, we are further understanding of these measures by
power supplied approximately 40% of Shikoku’s electricity before the
explaining them to local communities.
power generation as soon as possible. To this end, we are taking steps
TOPIC
Safety Measures at the Ikata Nuclear Power Station
in Light of the Accident at the Fukushima Daiichi Nuclear Power Station
Measure I: Preventing Flooding
In buildings containing important safety
equipment, we have replaced entrance
doors with watertight doors and installed
waterproof seals to improve the water
tightness of areas where piping passes
through the buildings.
sources, for use in emergencies in which we are unable to use
emergency gas turbine generators or existing equipment for receiving electricity from external power sources.
Measure III: Realizing Stable Cooling
Large watertight doors
Tsunami Estimates
Theoretical Maximum
Magnitude Earthquake
Earthquake
Magnitude
Tsunami
Height*1
Earthquake from fault system
running through the ocean floor
in front of plant
(Epicenter: Seto Inland Sea)
M7.8
Sea level
+approx. 4.3 m
Great Nankai Trough Earthquake
(Epicenter: Pacific Ocean)
M9.0
Sea level
+approx. 2.4 m*2
Height of
Plant
Sea level
+approx.
10.0 m
*1 Calculated by adding sea level at high tide (1.6m above mean sea level) to the rise in sea level due
to tsunami
*2 Figures for Unit No. 3. Unit No. 1 and Unit No. 2 are under assessment. (minimal effect on the
Ikata Nuclear Power Station, which is on the Seto Inland Sea side)
Measure II: Securing Power Sources
Before the accident at Fukushima, the Ikata Nuclear Power Station
already had seven power transmission lines able to supply electricity and two diesel generators for emergency use at each unit.
In light of the accident at Fukushima, we have installed four
air-cooled generators for emergency use on a terrace 32 meters
above sea level, which have a total output of 7,300 kVA. Further,
we have laid two new distribution lines connecting to a substation
95 meters above sea level. In addition, by fiscal 2015 we plan to
install equipment for receiving electricity from external power
18
Before the accident at Fukushima, the Ikata Nuclear Power Station
was already diversifying piping and pump trucks for supplying coolant as well as pump power sources.
In light of the accident at Fukushima, we have added pump
trucks that can supply water from fresh water tanks or the sea,
seawater pump motors and submerged motor pumps, and alternative water injection pumps for steam generators.
Measure IV: Preparing for Earthquake Ground Motion
We have confirmed that important safety equipment (see the diagram on the opposite page) is able to withstand earthquake ground
motion approximately twice the magnitude of standard earthquake
ground motion. For equipment requiring additional measures, we
are taking appropriate action. Having completed measures for Unit
No. 3, we aim to complete measures for Unit No. 1 and Unit No. 2
by fiscal 2015.
Engineering Work to Strengthen Earthquake Resistance
Before earthquake resistance
strengthening
After earthquake resistance
strengthening
Important Safety Equipment, Venting Equipment with Filters, and Hydrogen
Processing Equipment
Measure V: Ensuring Readiness
for Major Accident
Hydrogen
processing
equipment
In light of the accident at Fukushima, we have
installed equipment to mitigate the effect of severe
accidents—such as damage to fuel rods within the
nuclear reactor—including equipment that prevents
hydrogen explosions by processing hydrogen accumulated within the nuclear reactor containment vessel.
Also, we have added water cannons that curb the
release of radioactive materials. In addition, by fiscal
2015 we plan to install venting equipment with filters
that will be able to extract a certain amount of air
while filtering out radioactive material, even if pressure within the nuclear reactor containment vessel
has risen to abnormal levels.
Air outlet
Important safety
equipment
Steam
Reactor
support
facilities
Containment structure
Reactor
vessel
Residual
heat removal
facilities
Catalyst
plate
Air inlet
Air Steam
Reduces
radioactive
materials
Exhaust
Steam generator
Ascending
current
Hydrogen
Hydrogen and
oxygen react to
create steam,
thereby
reducing hydrogen
Exhausts after filters absorb
radioactive materials within nuclear
reactor containment vessel
Venting equipment
with filters
Pressurizer
Steam
Turbine
Generator
Control rods
Residual
heat
removal
pump
Water
Condenser
Wastewater port
Fuel
Primary coolant pump
Waterintake port
(sea water)
Measure VI: Conducting Training
We conduct drills based on a wide variety of emergency scenarios. Through these drills, we have confirmed our ability to
secure power sources reliably, even at night or in other challenging conditions. We intend to continue such training.
Positioning of Principal Equipment
Diesel generators
for emergency use
Transmission lines (7)
Previous Standards
Substation
95 m above sea level
Pump trucks
Fresh-water
tank
Seawater
pump
Water
Sea
Mobile fire fighter pumps
Performance of cooling equipment
Envision and evaluate standard tsunami
Taking into consideration fire
Taking into consideration fire
Taking into consideration reliability
Power source reliability
Power source reliability
Performance of cooling equipment
Capabilities of other equipment
Capabilities of other equipment
Earthquake and tsunami resistance performance
Earthquake and tsunami resistance performance
Strengthened
Preventing Flooding
Taking into consideration natural phenomena
Emergency stations
(earthquake-resistant construction)
Main Requirements of New Standards
Measure I
Response to intentional aircraft collisions
Preventing breakage of nuclear reactor containment vessels
Taking into consideration natural phenomena
Air-cooled generators for emergency use
The Group’s independent measures to heighten safety even further
Strengthened curbing of radioactive material diffusions
Preventing damage to reactor cores (envisioning equipment failures)
Taking into consideration reliability
Measures in response to new standards
New Standards
Strengthened
Water
cannons
Design standards based on scenarios
in which fuel rods not damaged:
Only envisioned failures of single
items of equipment
(Severe accident countermeasures)
Distribution lines (2)
The previous standards only covered design in relation to such natural disasters as
earthquakes and tsunamis. However, as well as significantly strengthening these standards, the new standards envision accidents due to terrorism and other external factors. In addition, they call for countermeasures to minimize the effect of severe
accidents, such as damage to fuel rods.
With respect to Unit No. 3 of the Ikata Nuclear Power Station, the Yonden Group
has comprehensively evaluated the effectiveness of safety measures it has taken to
date. The Group concluded that it has secured sufficient safety in compliance with
the new regulations. Therefore, it has submitted an application to the government in
relation to confirmation of compliance with the new standards.
Strengthened
Ikata Nuclear
Station
Installed Power
watertight
doors and
waterproof seals
Attributes of New Regulatory Standards
*Prepared based on the 27th Nuclear Regulatory Commission’s “proposal on new standards for light water
reactor facilities for electricity generation” document of February 6, 2013
Main Measures at Ikata Nuclear Power Station
Progress of Measures
Confirmed tsunami does not exceed height of grounds
Completed
Installed watertight doors and waterproof seals
Completed
Air-cooled generators for emergency use (4)
Distribution lines (2 routes)
Measure II
Emergency-use gas turbine generators
Strengthen electricity supply capabilities
Securing Power Sources
Equipment for receiving electricity from external power sources
Power supply lines among units
Fuel oil tanks (three 97kl tanks)
Pump trucks (9)
Mobile firefighting pumps (8)
Submerged motor pumps (30)
Spare seawater pump motors (3)
Measure III
Strengthen cooling capabilities of nuclear reactor /
Alternative water injection pumps for steam generators
Realizing Stable Cooling
spent fuel-rod storage pools
Piping for supplying seawater
Piping for supplying water from auxiliary water supply tank to tank for water used for fuel replacement
Piping for coolant for pumps
Light oil tank (two 36kl tanks)
•Investigate and evaluate active faults within grounds Evaluated and found no active faults within grounds
Measure IV
•I
mprove earthquake resistance of equipment
Secured twice required level of earthquake resistance
Preparing for Earthquake Ground Motion
and facilities
Improved earthquake resistance
Emergency stations
Hydrogen processing equipment (5)
•Establish emergency stations
Water cannons (2)
•Prevent hydrogen explosions
Measure V
Venting equipment with filters
•Prevent radioactive material diffusion
Alternative spray pumps for nuclear reactor containment vessels
Ensuring Readiness
•Strengthen communications and
for Major Accident
Diversified communications methods
contact capabilities
Wheel-type loaders (2)
High-level-radiation protective clothing
Facilities for responding to specific severe accidents (control office for times of emergency, etc.)
•Conduct simulation training based on scenarios envisioning complete loss of alternating current power
Measure VI
•Conduct practical training for each measure and comprehensive training
Conducting Training
•Improve proficiency by continuing training
Completed
Completed
Plan to complete fiscal 2015 (Unit No. 3)
Completed
Completed
Completed (Unit No. 3)
Completed
Completed
Completed
Completed
Completed
Plan to complete fiscal 2013
Completed
Completed
Completed
Completed
Plan to complete within five-year grace period
19
Business Activities
Adjustment of Operational Management and Maintenance
At the Ikata Nuclear Power Station, we monitor the operational status of
facilities 24 hours a day; conduct regular inspection tours; and every 13
months, stop operations of the power station to conduct periodic inspections in accordance with the law.
Further, in relation to inspections and maintenance, we are conducting initiatives to optimize the inspection frequency for each
piece of equipment based on rational, scientific methods. Specifically, we are introducing reliability-centered maintenance (RCM)
and condition-based maintenance (CBM). RCM seeks to rationalize
maintenance work by analyzing how much the failure of a given
piece of equipment would impact the plant as well as its usage frequency, installation conditions, failure history, and other factors. Appropriate maintenance methods and inspection schedules are then
developed. CBM involves maintenance work that includes
monitoring the facility operating status from the vibration
and lubrication of the machinery in order to detect early signs
of irregularities and stepping up
monitoring or conducting over- One of our operational personnel during
an inspection tour
hauls accordingly.
for a period not exceeding 20 years of nuclear reactors that have been
in operation for more than 40 years. Based on efforts to comply with
new regulatory standards and e nhance safety even further, we intend
to utilize the Ikata Nuclear Power Station effectively for as long as
possible by continuing to reflect the latest knowledge and technology
promptly in operations.
Thorough Training Programs for Operational and
Maintenance Staff
We implement thorough training programs for the operational and
maintenance staff at the Ikata Nuclear Power Station. At the Nuclear
Research & Training Center located in Matsuyama City in Ehime Prefecture, employees learn the proper procedures to be undertaken
under normal operating conditions and in a number of simulated
emergency situations involving malfunctions or accidents. Utilizing
facilities built to the same specifications as those used at the plant,
employees are thoroughly drilled on each step of these procedures,
helping them improve their skills and knowledge while also conditioning them to respond calmly and accurately under even the most
extreme circumstances and fostering teamwork. The center also conducts research related to facility and operational safety.
Advancing Preventative Maintenance Based on Long-Term
Perspectives and Responding to Regulations for Facilities
More Than 40 Years Old
We are implementing initiatives geared toward keeping the Ikata
Nuclear Power Station in sound condition so that it may continue
operating safely and stably over the long term. To this end, we periodically conduct preventative maintenance in accordance with plans,
which includes inspecting equipment or upgrading it through largescale construction and engineering work. We base these efforts on
information gained from examples of operations and incidents from
Japan and overseas. Units No. 1 and No. 2 have been in operation for
over 30 years. For both units, we have replaced important large components including steam generators, internal structures of the nuclear reactor, the cover of the reactor vessels, and low-pressure turbines.
We have also undertaken general digitization work related to the central control panels.
The Nuclear Reactor Regulation Law permits the extended operation
Preventative Maintenance Conducted on Ikata Units No. 1 and No. 2
Containment structure
Steam generator
Reactor
vessel
2
Pressurizer
1
Water
Control rods
1
3
Replacement of steam generator
Primary
coolant
pump
Training on removing and replacing the
reactor vessel cover
Training on disassembling and assembling the primary coolant pump
Operational training using simulator
built to the same specifications as those
used in the central control room
Instructors set power plant simulation
parameters for training
Commitment to Information Disclosure
We are fully committed to disclosing information on nuclear malfunctions and other issues at the Ikata Nuclear Power Station. Any situation
that deviates from normal operation is immediately reported to the
Ehime prefectural government and the town of Ikata. The Ehime prefectural government then evaluates the gravity of our report and formulates a public disclosure based on one of three categories that it has
established. We subsequently make public announcements in line with
the prefecture’s formulation. This prompt, highly transparent disclosure approach has become known in Japan as the “Ikata System,” and
is often referred to as an example of superior disclosure. Further, in
June 2013 there was a delay in notification about deposits on the fuel
Notifications to Ehime Prefecture and Ikata Town Based on
Safety Agreements
FY
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Class A
5
Class B
6
Class C 29
Total
2
20
eplacement of cover of
R
reactor vessel
3
eplacement of internal
R
structures of nuclear reactor
40
3
5
7
9
5
7
2
9
4
2
1
10
11
8
7
5
11
5
8
11
5
2
33
30
35
23
23
30
26
30
29
26
18
46
46
50
39
33
48
33
47
44
33
21
Overview of public notification in Ehime Prefecture
Class A (Trouble, etc., that needs to be reported to the government): Immediate public notification
Class B (An abnormal situation at a facility, etc., has occurred within the radiation administrative
region): Public notification within 48 hours
Class C(Events other than those covered by classes A and B above): Public notification on the 10th of
every month about the previous month’s events
assembly of Unit No. 3 of the Ikata Nuclear Power Station. In light of
this incident, we are doing our utmost to prevent a recurrence of such
an incident. For example, at the Ikata Nuclear Power Station we have
deployed a dedicated manager with overall control of notifications to
strengthen notification systems and clarify responsibility. Also, in June
2011, we began expanding the range of entities to which we report
“class A” incidents, those requiring immediate disclosure. We now report such incidents to all cities and towns in Ehime Prefecture and to
the prefectural governments of Kagawa Prefecture, Tokushima Prefecture, and Kochi Prefecture.
rates and also measure and analyze radioactive materials based on
safety regulations and safety agreements concluded with Ehime Prefecture and the town of Ikata.
In these efforts, we measure environmental radiation dose rates at
four monitoring posts and one monitoring station installed on the
perimeter of the power station’s premises and at 16 monitoring posts
in the area surrounding the power station. We give local residents
peace of mind by disclosing the results of these measurements in
real time on our website. Also, we send the results to the Ehime
prefectural government and the municipal authority of Ikata.
Conclusion of Memorandums with Municipal Authorities
around the Ikata Nuclear Power Station
Fostering Understanding in the Surrounding Communities
To give greater peace of mind to the residents of the local communities in the areas surrounding the Ikata Nuclear Power Station, we
concluded memorandums on ensuring the safety of the Ikata Nuclear
Power Station with Ehime Prefecture and the three cities of Yawatahama, Ozu, and Seiyo in September 2012. These memorandums
extend the list of contacts during emergencies or abnormal situations
that safety agreements stipulate to include the three cities. Moreover,
they are the first memorandums
related to ensuring the safety of
the Ikata Nuclear Power Station
concluded with municipalities
in prefectures and cities beyond
the area in which it is located.
We believe the memorandum will
enable us to intensify communi- Concluding memorandum with Ehime
cation with local municipalities Prefecture and three cities in the area surand manage operations in con- rounding the Ikata Nuclear Power Station
cert with local communities.
Since 1988, we have been conducting a dialogue initiative in which
employees visit all of the 20,000 residences in the town of Ikata and the
city of Yawatahama to explain safety measures for the Ikata Nuclear
Power Station and receive a variety of feedback from residents firsthand.
Since the fiscal year ended March 31, 2012, aiming to respond
to the increased concern about the safety of nuclear power plants,
we have expanded the scope of these efforts to include residences
located within a 20 km radius of the Ikata Nuclear Power Station.
Going forward, we will continue to communicate with community
members in this expanded area.
Conversing with the community
Visitation Area
Measurement of Radioactivity
20 km radius
To confirm that the radiation originating from the Ikata Nuclear Power Station is not affecting the surrounding area, we measure its dose
10 km radius
Ozu City
Ikata Nuclear
Power Station
Increased Installation of Monitoring Posts
In light of the accident at the Fukushima Daiichi Nuclear Power Station,
in April 2012 we added seven monitoring
posts to the nine already installed in the
area surrounding the Ikata Nuclear Power
Station. As a result, we are able to measure radiation dose rates in a wider area
and give residents of the local community
Monitoring posts
even greater peace of mind.
Yawatahama
City
Ikata Town
Seiyo City
Residences visited
All
28,000
Nuclear Power Quality Assurance Activities
Under a quality assurance system headed by the
President, we conduct nuclear power quality assurance activities based on the direction of the Division
Manager of the Nuclear Power Division. In this
manner, we are continually improving the quality of
our management of operations, maintenance, and
radiation as well as continually improving construction by applying the plan-do-check-act (PDCA) cycle.
Further, the General Manager of the Internal
Nuclear Quality Assurance Audit Department has
been stationed within the Internal Audit Office to
enable the monitoring of operations in the nuclear
power business from a more objective perspective.
As necessary, this manager will conduct proposals or
offer suggestions or advice to nuclear power divisions based on audit results. Follow up is then conducted to monitor improvement.
Nuclear Power Quality Assurance System (Shikoku Electric Power)
President (Top management)
Report
Division Manager of Nuclear
Power Division
(Chief administrator)
Report
Audit plan
Report results
Instruct
Internal Audit Office
General Manager of Internal Nuclear
Quality Assurance Audit Dept.
(Chief administrator)
Internal audit
Instruct
General
General
Manager of
Manager of
Purchasing &
Nuclear Power
CollaboMaterials Dept. ration
Division
General
Manager of
Nuclear Fuel
Dept.
Instruct
Head of Ikata
Nuclear Power
Station
Head of
Nuclear
Research &
Training
Center
General
Manager of
Civil &
Architectural
Engineering
Dept.
21
Business Activities
Thermal Power Generation
Thermal power plays an indispensable role in securing a stable supply of
electricity due to its ability to be supplied in a stable manner and the fact that
generation volumes can be easily adjusted to respond to changes in electricity demand.
In generating thermal power, we utilize different fuel sources based on the
degree of demand. Using coal and LNG as a base, we step up LNG usage when
demand enters the middle range and then begin using oil when demand is at
its peak.
Tachibana-wan Thermal Power Station: Shikoku Electric Power’s largest coal-fired thermal plant
Compensating for the Stoppage of Ikata through Increased
Operation of Thermal Power Plants
Implementing Plans to Introduce LNG Facilities to Sakaide
In the fiscal year ended March 31, 2013, due to the stoppage of all
units of the Ikata Nuclear Power Station, thermal power plants played
a significant role as an alternative power source enabling stable power supplies. To supplement supply capacity so that we could meet
heavy demand during summer and winter, we used all units at our
thermal power plants by postponing periodic inspections after conducting intermediary inspections to ascertain the soundness of facilities. Furthermore, when supply and demand became particularly
tight, we ensured stable power supplies by increasing output at certain thermal power plants to heighten supply capacity.
We are actively introducing LNG power generation facilities with outstanding environmental performance. In conjunction with facilities
upgrading at the Sakaide Thermal Power Station—which mainly uses
oil as a fuel for power generation—we have refitted Unit No. 4 to use
LNG as a fuel and replaced Unit No. 1 with a high-efficiency LNG
combined cycle system.
Currently, we are planning to replace Unit No. 2 with a LNG combined cycle system. To this end, we completed the environmental
assessment procedures in February 2012. Aiming to begin construction in September 2013 and
start up operations in August
2016, we will proceed with
plans steadily. After Unit No.
2’s shift to LNG, three out of the
Sakaide Thermal Power Station’s four units will be using
LNG power generating facilities
An image of how Unit No. 2 of the
and the total generation capac- Sakaide Thermal Power Station is
ity of the plant will have been expected to look upon completion
raised to 935 MW.
Operational Safety and Facility Maintenance Initiatives
To ensure the safe operation of thermal power plants, which are continuing to perform at high operational rates, we are taking day-to-day
measures to improve operational capabilities. For example, we have
stepped up operational monitoring and inspection tours significantly
to prevent accidents. Also, we use training simulators to conduct
drills based on accident scenarios.
Facility maintenance initiatives include preserving and improving
on-site technological capabilities by using actual operational
machinery to conduct maintenance training. Further, we ensure the reliability of facilities
by maintaining them appropriately and efficiently in accordance with their priority levels.
Overhauling a steam turbine
Volume of Thermal Power Generation
Million kWh
30,000
25,000
20,000
15,000
10,000
5,000
0
2008
2009
■ Coal ■ Fuel oil, gas, etc. ■ LNG
22
2010
2011
2012
FY
Stable, Economic Fuel Procurement
To avoid over reliance on such fuels as oil, LNG, and coal, we seek an
optimal fuel mix. At the same time, we procure fuel stably and economically by concluding long-term contracts with suppliers upon
whom we are particularly reliant, sourcing fuel from a wide variety
of countries, and diversifying procurement methods. However, our
consumption of crude oil has risen steeply due to the increased
operation of oil-fired thermal facilities accompanying the stoppage of all facilities at the
Ikata Nuclear Power Station.
In response, we have increased
our ability to receive crude oil by
installing a night-use loading dock
at the Anan plant in Tokushima. Unloading coal
Renewable Energy
We are promoting the usage of renewable energy by generating it in-house
and purchasing surplus electricity from customers’ facilities. Renewable
energy is beneficial in its ability to help Japan become more self-sufficient
in terms of energy and its low CO2 emissions.
Matsuyama Solar Power Station
Hydropower Generation
As well as being a valuable renewable energy produced entirely in Japan, generation costs for hydropower can be stabilized over the long
term. This also plays a cornerstone role in maintaining supply and
demand balances as it can be used to adjust against rapid load fluctuations and provide power during peak hours.
Aiming to use valuable water resources effectively, we endeavor to
realize stable hydropower generation operations by preempting problems through painstaking preventative maintenance that includes
inspection tours and periodic inspections. At the same time, we increase operational efficiency by replacing water turbines when we
upgrade facilities. Also, we maintain facilities with a view to securing
stable power supplies for the future, lengthening service life, and
reducing natural disaster risk. As part of these activities, in the fiscal
year ended March 31, 2013, we repaired a large dam gate at the
Omogo Daisan Dam in Ehime
Prefecture and overhauled* the
Hongawa Power Station in Kochi Prefecture and the Omogo
Daiichi Power Station in Ehime
Prefecture.
* The periodic overhauling of water turbines and
generators and the replacement of their old
components to prevent problems
Repaired a large dam gate at the Omogo
Daisan Dam
Solar and Wind Power Generation
There are high expectations regarding clean solar and wind power
generation, despite issues associated with the expanded introduction
of facilities, such as the difficulty of securing a stable electricity supply
due to renewable energy’s dependence on weather conditions. For
solar power, at our Matsuyama Solar Power Station, we intend to
increase generation capacity to around 4.3 MW by the fiscal year
ending March 31, 2021. In addition, Group companies use municipal
authorities’ open application system for projects to participate in solar
power generation businesses and acquire orders to build and maintain
The Group’s Solar and Wind Power Generation Facilities
Operating Company
Shikoku Electric Power
Solar Power (Matsuyama Solar Power Station)
Yondenko Corporation
(Muroto Wind Power Station)
Wind Power Misaki Wind Power
Okawara Wind Farm
Ei Wind Power
Location
Output
Ehime Prefecture
2.042MW
Kochi Prefecture
Kochi Prefecture
Ehime Prefecture
Tokushima Prefecture
Kagoshima Prefecture
related facilities. As for wind power, the total generation capacity
of facilities, which are principally owned by Group companies, is
54 MW.
Further, we continue to purchase electricity from customers’ solar
and wind power generation facilities. As of March 31, 2013, contracted
purchase volumes had risen to approximately 320 MW for solar power
and approximately 120 MW for wind power.
Electricity Purchased from Solar and Wind Power Facilities
(Contracted Electric Power)
MW
600
450
120MW
300
150
320MW
0 2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
FY
■ Solar power ■ Wind power
Initiatives to Expand Introduction of Wind Power Facilities
We are advancing a range of initiatives to introduce more wind power
generation facilities in the Shikoku region. Specifically, we are using
interregional lines to transmit up to 200 MW of thermally generated
electricity to The Kansai Electric Power Co., Inc., and CHUBU Electric
Power Co., Inc., which serve larger markets than we do. Because we
can adjust the output of thermal power generation readily, increasing
it as a percentage of total power generation is enabling us to receive a
greater volume of wind power generated electricity. Also, we are
exploring technological options based on the latest knowledge,
including power generation results. As a result of these efforts, we
have increased the volume of wind power generated electricity we can
receive from 250MW to around 600MW at present.
Scheme for Using Sales to Other Utility Companies to Expand
Introduction of Wind Power Facilities
Up to 200 MW sold to
mainland Japan from Shikoku
2.48MW*
>>>>>
0.30MW
20.00MW
19.50MW
14.00MW
Expand wind power grid in Shikoku
by approx. 200 MW
Transmit electricity to
CHUBU Electric Power
and Kansai Electric Power
* Scheduled to start operations in December 2013
23
Business Activities
Power Network
Our power network plays a central role in supplying generated electricity to
customers in an efficient and stable manner.
Our network consists of approximately 6,400 km of transmission lines,
approximately 200 substations, and around 166,000 km of distribution lines.
It has been constructed in a systematic manner that integrates different power
sources with one distribution network to allow for efficient operation.
Transmission line maintenance
Efficient Grid Integrated with Power Sources
In our base power grid, 500 kV transmission lines play an important
role because they can transmit large volumes of electricity efficiently.
We have developed this power grid as we have built power sources. It
spans approximately 280 kilometers between the Ikata Nuclear Power Station on the western edge of Shikoku and Tachibana-wan Thermal Power Station on its eastern edge. Moreover, the power grid is
connected to the grids of The Kansai Electric Power Co., Inc., and
The Chugoku Electric Power Co., Inc., enabling us to receive electric
power transmissions from Japan’s main island in emergencies.
Improving the efficiency of our power grid while maintaining and
enhancing electric supply reliability is an important task. We are proceeding with plans to maintain power grid facilities that are due for
renewal and aiming to further reduce transmission losses. Other initiatives include conducting detailed analysis of the effect of introducing renewable energy sources to our power grid and continuing to
develop measures to increase its stability.
the functionality of grid protection devices in order to minimize the
impact of an accident. Regarding distribution facilities, the duration
of power outages is significantly shorter than those of our peers in the
West. We achieve this through appropriate maintenance and inspections. Measures to reduce the frequency or the time required for
maintenance and inspections that are accompanied by planned power outages contribute to our superior performance as well. Also, at all
operating sites, we are installing comprehensive automation systems
for distribution grids, which automatically and rapidly minimize the
scope of power outages due to such factors as typhoons and enable
us to resume transmission as soon as possible.
Global Comparison of Annual Accidental Power Outages per Customer
(Recent 5-Year Averages*)
Minutes / Customer 261
300
261
200
Measures to Improve Supply Stability
The emergence of an information-oriented society has made electricity even more indispensable in a variety of areas of daily life and
manufacturing.
In order to prevent unplanned power outages, we are implementing
a number of initiatives to improve the reliability of our power network.
For transmission equipment and substations, we are backing up our
current network by installing multiplex transmission lines and using
multiple transformer banks. Other steps are being taken to increase
68
100
Electric
Power
Italy
California Australia
South
Korea
As an example of advanced metering infrastructure, smart meters promise to improve
services for customers by enabling diversified electricity rates and increased administrative efficiency for utility companies. Also, they are likely to mitigate imbalances in electricity supply and demand by visualizing electricity consumption and thereby reducing
consumption during peak demand periods and enabling energy-saving measures.
We have already introduced smart meters at the facilities of customers using large
extra-high-voltage and high-voltage supplies, and in the coming four years we also plan
to introduce them at the facilities of customers using small high-voltage supplies.
Furthermore, for low-voltage customers we are currently verifying the incorporation of
smart meters into our operations and conducting verification testing of systemic compatibility on the premises of approximately 1,000 customers in Takamatsu, Kagawa
Prefecture. We intend to resolve any problems that these tests reveal and begin fullfledged introduction of smart meters from the second half of 2014.
France
New York
*Average of the five-year period up until March 31, 2013, for Shikoku Electric Power, up until 2011 for
Italy, California, and Australia, up until 2010 for South Korea, France, and New York.
Source: Overseas Electric Power Industry Statistics 2012, etc.
Taking Steps toward Introduction of Smart Meters
24
90
17
7
0 Shikoku
98
The smart meter we are using
in verification testing
Sales Activities Reflecting a Customer-First Mindset
Electricity provides peace of mind and affords people comfortable lifestyles,
and is also environmentally friendly, thus it is used in various fields.
The Yonden Group makes concerted efforts to provide customers with technical solutions, a selection of optimal electricity rates, and other solutions
that meet their various needs in such areas as energy consumption and cost
reduction.
Technical solutions activities
Consulting that Addresses Customer Needs
The Group provides customers with technical solutions that leverage
its technological capabilities and expertise to offer better solutions to
the various technical issues they have in relation to energy use.
We are providing customers with solutions involving efficient electricity usage or the introduction of systems using electricity to r eplace
those that used other energy sources. These solutions are capable of
addressing the reduction of energy consumption or costs needs at
customers’ office buildings, schools, welfare facilities, or stores. For
example, we provide electrical systems for commercial customers,
such as electric air conditioners, water heaters, and kitchen appliances, that utilize highly energy-efficient electric heat pumps. These
systems are being acclaimed and roundly embraced by customers for
their safety, comfort, and cleanliness as well as their reduced energy
use, lower costs, and lower CO2 emissions.
Further, we utilize cutting-edge technologies and energy-saving
equipment to offer industrial customers a wide range of consulting
services. Proposals for factories and other industrial facilities include
those that improve the operational efficiency of equipment through
energy-use analyses or the efficiency of the facility itself by replacing
equipment. We also help customers understand where energy is
wasted during the operation of their facilities so that we may propose
solutions to optimize energy usage in production processes or make
these processes more environmentally sound.
Through these efforts, we made approximately 2,070 sales proposals
in the fiscal year ended March 31, 2013, roughly 870, or 40%, of
which were employed by customers. Moreover, for approximately 430
of these proposals, the Group was contracted for their installation.
The revenues from these activities were around ¥2.4 billion.
Technical Support Offered*
2,500
2,073
2,000
1,500
1,000
500
2003
2004
2005
Energy-saving measures
Load equalization measures
Rising Demand in the Residential Sector
All-electric homes, which use electricity as the source of energy for
all household processes, including cooking, water heating, and air
conditioning, are popular among a wide range of customers because
of the safety and comfort afforded by not using combustion-based
energy sources. Of particular note is “Eco-cute,” a system that heats
water with atmospheric heat by means of heat pump technology. This
innovation is highly valued for its excellent energy efficiency and for
its environmental advantages associated with reduced CO2 emissions.
In the fiscal year ended March 31, 2013, 22,000 all-electric
homes newly adopted this system (All-electric homes account for
70% of newly built homes.). Further, the cumulative total of allelectric homes has increased to around 270,000.
Number of All-Electric Housing Units
Thousands of units
Thousands of units
60
300
272
40
200
22 12
20
100
10
0 2002
2003
2004
2005
2006
2007
Newly constructed (individual year basis)
2008
2009
2010
2011
2012 0
FY
Existing units (individual year basis)
Contracts (cumulative basis, right)
Taking Advantage of Customer Feedback to Enhance Services
Times
0 2002
In this manner, the Group’s proposal-based sales activities are
contributing to improved customer satisfaction and higher revenues.
2006
2007
2008
2009
2010
2011
2012
FY
Facility maintenance measures
Each year, we receive approximately 740,000 inquiries and requests from customers about electricity. To provide these customers
with high-quality, efficient responses from expert personnel, we
have established a Customer Information Center at our branch offices in Tokushima, Kochi, Matsuyama, and Takamatsu. Moreover,
we enhance services and improve
operations by sharing and analyzing the opinions and requests
each Customer Information Center receives from customers daily.
Other (environmental measures, etc.)
* From the fiscal year ended March 31, 2012, provisions related to switching to equipment that uses electricity are included under “energy-saving measures,” whereas they were included under “other” previously.
Data for the fiscal year ended March 31, 2011, and the previous years has been restated accordingly.
Customer Information Center
25
Business Activities
Taking on the Challenge of Creating New Added Value
Integrated Energy
Aiming to reform and grow to become a multi-utility corporate
group supporting work and life, the Yonden Group is leveraging
its collective strength to develop new high-added-value businesses in various fields, including services in such areas as integrated energy, telecommunications, and business and lifestyle
support. We are confident these new business areas will establish platforms for our future growth.
Three Business Domains
Telecommunications
Integrated Energy Area
In the integrated energy business area, we are effectively exploiting
management resources that we have accumulated in the electric
power business—such as technology, expertise, and personnel—
to develop domestic LNG sales businesses as well as consulting
businesses and power generation businesses overseas.
LNG Sales
Following the commencement of operations at the Sakaide LNG Terminal, constructed in conjunction with the introduction of liquefied
natural gas (LNG) utilizing facilities at the Sakaide Thermal Power
Station, we commenced wholesale gas supply to Shikoku-Gas Co.,
Ltd., in 2010, and have also begun full-scale sales to customers
operating factories in Shikoku. By conducting sales promotion activities targeting customers with significant heat demand, we successfully sold 120,000 tons of LNG, valued at approximately ¥9.5 billion, in the fiscal year ended March 31, 2013. Going forward, we will
continue communicating the environmental benefits of LNG and
striving to expand sales routes.
Transportation by gas pipes
reduction, and the utilization and proliferation of renewable energy.
As of March 31, 2013, we have been contracted to undertake 71
consulting projects in 32 countries. Through these activities, we are
contributing to infrastructure development and environmental preservation in developing countries.
Overseas Power Business
As a result of efforts to acquire promising contracts centered on the
Middle East and Southeast Asia—which are seeing conspicuous
growth in demand for electric power—we are participating in three
overseas independent power producer (IPP) projects in Qatar and
Oman. In Qatar, the Ras Laffan C Project has continued commercial
operations steadily since April 2011. And, the Barka 3 Project and
the Sohar 2 Project began commercial operations in Oman in April
2013. While securing stable earnings from these two new projects,
over the medium-to-long term we intend to develop new projects.
Overseas Power Generation Operations
Qatar
Project
Sakaide Thermal Power Station
Shikoku-Gas
Co., Ltd.
Operated by Sakaide LNG
Company, Incorporated
(SEPCO’s stake: 70%)
Sohar 2
Establishment and
operation of new
power plant and
electricity sales
2,730 MW
744 MW each
290 k tons per day
—
Power Generation Facilities
Investment Participation by
Total Cost
Customers
(Factories, etc.)
Barka 3
Establishment and
operation of new power
and desalination plants,
sales of power and water
Desalination Facilities
Sakaide LNG
Terminal
Oman
Ras Laffan C
Project Details
LNG Sales Mechanism
Business and Lifestyle Support
5%
11%
Approx. US$3.9 billion
Approx. US$1.7 billion
April 2011
April 2013
Start of Operation
Transportation by truck
Overseas Consulting Business
Centered on developing countries in Asia, we are conducting a consulting business overseas based on contracts received from such
organizations as the Japan International Cooperation Agency (JICA)
and New Energy and Industrial
Technology Development Organization (NEDO). In accordance
with these contracts, we conduct investigations, verification,
and other consulting activities
regarding electricity generation
facilities, energy consumption Onsite planning
26
Project Locations
Iran
Ras Laffan
Qatar Doha
Saudi Arabia
UAE
11%
Pakistan
Sohar
Barka
Muscat
Barka 3
Oman
Power generation facilities
Telecommunications Area
Amidst the progressive globalization of the economy and the growing
diversity and complexity of customer needs, technological advancement and service integration in the telecommunications field are advancing at a rapid pace. Examples of this advancement include the
spread of broadband communications services and the development
of more-sophisticated information systems. Our telecommunications
segment is anchored by STNet, Inc. The segment effectively leverages our technologies, personnel, optical fiber equipment, and other
management resources to provide a complete lineup of products and
services for creating the IT platforms that support customers’ businesses and lifestyles. The extensive range of activities undertaken by
the segment includes offering information systems and telecommunications services and conducting cable television operations.
Optical Fiber Telecommunication Services
In optical fiber telecommunication services, our flagship service is
the high-volume, high-speed Pikara Optical Cable Internet Service.
Provided through collaboration with cable TV (CATV) companies located in Shikoku, this service provides customers with access to the
Internet, IP telephony, and multi-channel TV broadcasts in a onestop format. We are primarily targeting customer acquisitions
centered on the four prefectural capitals of Shikoku, and we have an
approximately one-quarter share of this market in Shikoku. In the
fiscal year ended March 31, 2013, we had 140,000 contracts and
net sales of approximately ¥10.6 billion. Going forward, we aim to
acquire more contracts.
Data Center Operation
As information services increasingly become a fixture in society, there
is a rising need for methods of storing larger amounts of data and
managing risks related to this data by dispersing the locations where
it is stored. To respond to this need, STNet will construct a massive
data center featuring the latest equipment and thoroughgoing security countermeasures in the city of Takamatsu, Kagawa Prefecture,
which is known to have relatively few natural disasters. Boasting a
Pikara Optical Cable Internet Service
Pikara Hikari Net
(Optical network
service)
Internet
total floor space of 36,000 m2 and over 3,000 storage racks, this
data center will be one of the largest in West Japan. We anticipate
that it will be a great asset in expanding our data center business. We
plan to launch services from December 2013. Rather than simply
providing data center facilities, we aim to offer customers convenient
highly reliable one-stop services that encompass system management services, including management, operation, and maintenance
services. To this end, we will
make maximum use of our ability to provide through a single
company services in the systems development area, the
platform area, and communications area—a strength competitors cannot match.
An image of the new Takamatsu data
center upon completion
Business and Lifestyle Support Area
In our business and lifestyle support business, we are leveraging the
Group’s brand power in the Shikoku region to launch diverse services
closely linked to the lifestyles of local residents, including a nursing
care business and local government projects.
Nursing Care Business
As the population of Japan continues to age, the demand for nursing
homes is on the rise. To respond to this demand, Group company
Yonden Life Care Company, Inc., is operating fee-based nursing
homes. Nursing care professionals are stationed at these homes on a
24-hour-a-day basis, and the homes are proving to be very popular.
We believe this is partially due to a sense of reliability and trustworthiness that is associated with the Group. We opened our third home,
which is located in the city of Kochi, in March 2012 as an addition
to our homes in the city of Matsuyama and the city of Takamatsu.
Our nursing homes have an open,
cheerful atmosphere. To enable
residents to enjoy the same lifestyles as they had in their own
homes, they can come and go as
they please and stay out overnight. Also, we organize a variety
of interesting events for residents. AMILLE YONDEN KOCHI, which opened in
March 2012
Pikara Hikari Denwa
(Optical IP
telephony service)
Optical fiber
CATV operators
(Cable Media Shikoku Company,
Incorporated, Cable Television
Tokushima, Incorporated, etc.)
Multi-channel
broadcasting services /
cooperate with
CATV operators
Trend in Cumulative Number of Contracted Customers
for Pikara Optical Cable Internet Service
Local Government Projects
Local government projects include private finance initiatives (PFIs)
that encompass financing, design, construction, maintenance, management, and operation of public facilities. Through such initiatives,
we are conducting four projects, including a school lunch center.
Furthermore, we have been contracted to manage and operate eight
public facilities within Shikoku under the designated management
system that comprehensively contracts out the management and
operation of public facilities that are owned by the local government.
Private Finance Initiatives (PFIs)
Thousands of customers
Municipal Authority
200
Town of Utazu
140
150
100
Tokushima
Prefecture
50
City of Tokushima
0 2004
2005
2006
2007
2008
2009
2010
2011
2012
City of Ozu
FY
Project Details
Project to develop and operate new school
lunch center in Utazu
Project to develop and operate Tokushima
Agriculture, Forestry, and Fisheries Technology
Support Center in Tokushima Prefecture
Project to develop and operate municipal high
school in city of Tokushima
Contractor
Yondenko
Corporation
Project to develop and operate school lunch
center in city of Ozu
27
CSR Activities
The Yonden Group is committed to fulfilling its social responsibility through its various business activities and building strong bonds of trust with all of its stakeholders.
In this endeavor, we practice strict compliance and work to preserve the environment
and contribute to the local community.
In addition to the CSR activities described in the Business Activities section, we also conduct various activities
based on the 7 CSR Pillars. These activities will be introduced on the pages that follow.
Coexisting in
Harmony with
Communities
Fostering
Employee
Motivation
Promoting
Compliance
The 7 CSR Pillars
Entrenching
a Customer-First
Mindset
28
Realizing a Stable
Electric Supply
Advancing
Environmental
Preservation
Activities
29
30
38
Advancing Environmental
Preservation Activities
Practicing Transparent
Management
Fostering Employee
Motivation
with Communities
40
VOICE
34
Practicing
Transparent
Management
35
To further strengthen bonds of trust with our stakeholders and improve corporate value,
the Group practices stringent compliance and acts in accordance with a high standard of
corporate ethics. All employees are made well aware of the importance of compliance
as we work to meet the expectations of society.
Systems for Promoting Compliance
and Corporate Ethics
Compliance Promotion System
At the Group, compliance is promoted on a Groupwide basis. As
such, we have established a Compliance Promotion Committee in
each Group company and the Compliance Council of the Shikoku
Electric Power Group at the Groupwide level.
Further, we have formulated compliance guidelines to serve as a
roadmap for all directors and employees in practicing good compliance. We are actively spreading awareness with regard to these
guidelines and taking steps to make sure they are adhered to.
Thorough Employee Education
The Group implements a variety of education programs geared toward
cultivating compliance awareness and a compliance-based mindset
among its employees. These include:
• Programs conducted by representatives visiting business sites
• Online compliance training courses provided for all employees
• Group compliance training
Compliance Consultation Office
The Group has also established a compliance consultation office to
serve as a venue for employees to consult with specialized in-house
staff or outside lawyers. Through this office, we enable employees to
consult with in-house and outside representatives in the event that
they have become aware of illegal or unethical behavior within the
Group. Reports that are received are responded to in an appropriate
manner. A total of five reports were received through this office in the
fiscal year ended March 31, 2013.
Overview of Compliance Consultation Office
(Implementation at SEPCO)
• Confirm factuality of report
• Take necessary measures to rectify
and prevent reoccurrence
Compliance
Promotion Committee
Report
Reporter
Group employee
Telephone / Fax / Letter
Dedicated intranet / Internet
In-house
reporting venue
(Reporter named by principle)
Outside party
Illegal or unethical behavior
within SEPCO or the Group
(general requests inapplicable)
Letter
Consultation venue
Outside reporting
venue
(Law firm)
Stringent Confidential
Information Security
Establishment of Management Systems
and Education of Employees
The Group has established the Confidential Information Security
Committee as a body for formulating and advancing confidential
information security measures. Further, we have developed internal
guidelines and are otherwise working to ensure that confidential
information, including customer information, is managed in a stringent and appropriate manner.
The Internal Audit Office periodically evaluates these management systems and reports findings to management.
We educate employees with regard to the management of confidential information through training programs and other efforts
geared toward spreading awareness.
Confidential Information Security Policy Publicizing
The Group has formulated confidential information security policies.
In these policies, we publicize the purpose for which the Group uses
confidential information, and we have also established a confidential
information consultation office. In these ways, we have made our
confidential information efforts public, and we are responsive toward
opinions and questions from outside of the Group.
Comprehensive Information Security
The Group realizes that information security is an exceptionally
important task that needs to be addressed in business operations.
As such, we have developed systems for guaranteeing comprehensive
information security on a Groupwide basis and have formulated
the Shikoku Electric Power Group Information System Security
Guidelines.
Computers are used to process massive quantities of information,
some of which is confidential. Such computer processing includes
exposure to risks such as leakage, alteration, system crashes, etc.,
and these risks could have serious social repercussions should they
materialize. To prevent the materialization of such risks, we are instituting various information security measures and taking steps to
foster information security awareness among employees.
Information Security Measures
Physical Information Security Measures
• Disaster and crime prevention measures at specialized centers that house computers
and other IT equipment
Technological Information Security Measures
• Identity verification measures, antivirus software, data encryption, and monitoring of
networks to prevent unauthorized access.
Human-Based Information Security Measures
• Information system security management guidelines to ensure security
•P
rograms to foster education and awareness regarding the importance of information
security and cautionary guidelines for computer usage
29
CSR Activities
Advancing Environmental Preservation Activities
The Group is devoted to preserving the planet and ensuring a bright future for all.
For this reason, we continue to pursue reductions in our environmental footprint
in all business areas while also conducting environmental preservation activities.
Yonden Group
Environmental Policies
Environmental Preservation Activity
Promotion System
In accordance with the Yonden Group Environmental Policies, we have
positioned environmental preservation among the most important
tasks of management, and are advancing Groupwide environmental
protection activities as such.
Yonden Group Environmental Policies
(Formulated in November 2004, revised in April 2011)
Basic Environmental Policies
The Group’s fundamental stance toward
environmental preservation
Environmental Action Policies
Concrete activity guidelines
Basic Policy 1
• Address global warming
Continue to reduce environmental
impact throughout all business fields
•C
onserve energy and level
electricity loads
The Group has established the Yonden Group Environmental Committee, which meets regularly. By receiving reports on environmental protection plans and the progress of initiatives, and then deliberating on
these reports, the committee helps realize uniform improvements in the
quality of environmental preservation activities throughout the Group.
In addition, the CSR Promotion Council, which is chaired by the
President, guides SEPCO in conducting environmental preservation
activities, which are primarily managed by the Environment Committee.
Promotion System (SEPCO)
CSR Promotion
Council
Chairman: President
Environment
Committee
Chairman: Director in
charge of the environment
• Preserve regional environment
Basic Policy 2
Practice environmental management
• Promote a recycling-based society
Basic Policy 3
•C
onduct green procurement and
create eco-friendly offices
Communicate with society
• Practice environmental management
Head Office
related
department
• Communicate with society
Representative: Department general manager
(General Manager of the Environmental
Affairs Department makes
Companywide adjustments)
Branch
Representative:
office, power
Site head
plant, etc.
Relationship between Business Activities and the Environment (Fiscal Year Ended March 31, 2013)
Power plants consume fuel and other resources to generate electricity, which results in the production of byproducts such as CO2 and industrial
waste. This is a given, but SEPCO is implementing an array of initiatives to minimize the impacts of its operations on the environment.
INPUT
Business Activities
Fuel for nuclear power generation*1
Generation
0t
Distribution
Crude oil
0.27 million kl
Natural gas
0.4 billion m N
3
Coke oven gas
0.7 billion m N
Woody biomass
7 thousand tons
3
0 million kWh
Thermal power plants
Thermal power
generation volume
17,545 million kWh
Hydropower plants
Hydropower
generation volume
2,348 million kWh
Water*2
4.20 million tons
Alternative energy*3
Substances that prevent environmental harm
11 million kWh
82 thousand tons
Alternative energy
generation volume
Volume of
purchased
electricity
10,697
million kWh
Pumped-storage
power volume
(89)
million kWh
Loss during
transmission and
distribution
(1,591)
million kWh
Internal
consumption
(1,511)
million kWh
OUTPUT
Other
4 thousand tons
4 thousand tons
(Hydrochloric acid, sulfuric acid, caustic soda,
hydrazine, etc.)
30
19.18/17.98*4 million t-CO
7 thousand tons
9 thousand tons
2
SOx
NOx
Customers
(Residences,
etc.)
Electricity sales
volumes
Exhaust water
2.27 million tons
Industrial waste, byproducts, etc.
27,410
Coal ash
million kWh
269
thousand tons
Heavy and
crude oil ash
Gypsum
thousand tons
thousand tons
3
153
Company offices
(Included in the
above figure)
Materials produced through recycling
and rate of recycling
Electricity
consumption
Cement
Combustion cata- Gypsum board
materials, etc. lysts for cement materials, etc.
production, etc.
23
million kWh
99.7 %
97.0 %
Rate of recycling Solid radioactive waste
(Calcium carbonate, slaked lime, etc.)
Ammonia
Emissions into the atmosphere
Use
Distribution lines
1.02 million kl
Nuclear power plants
Nuclear power
generation volume
Substations
Fuel oil
Transmiassion
lines
2.86 million tons
Lime
OUTPUT
Flow of Materials
CO2
Fuel for thermal power generation
Coal
Flow of Electricity
*1 Uranium used *2 Combined total of water used for generation and other purposes in thermal and
nuclear power plants *3 Energy from woody biomass co-firing generation at the Saijo Thermal Power
Station as well as from the Matsuyama Solar Power Station and the Muroto Wind Power Station
*4 After reflection of Kyoto mechanism credits *5 Average of all materials recycled, including the three
items listed above *6 PRTR: Pollutant Release and Transfer Register
100 %
99.4 %*5
3,219 drums
PRTR*6 listed chemicals
7 tons
0.5 tons
Emission into atmosphere (Xylene, etc.)
Release into water (Hydrazine, etc.)
Environmental Goals and Performance
(SEPCO)
Basic Environmental
Policies / Environmental
Action Policies
Continue to reduce environmental impact throughout all business fields
Address Global
Warming
Target
Environmental Indicator
Performance
Unaccomplished
Target
FY2012
FY2012
CO2 emissions intensity
(CO2 emissions volume)
kg-C02/kWh
(10,000 tons)
0.326*1
0.700/0.656*2
(1,918/1,798*2)
Ratio of zero emissions
power sources*3
%
More than 50%
14
Utilization ratio of nuclear power
generation facilities
%
85*4
0.0
Restart Ikata Nuclear Power
Station at early date after
ensuring safety, reduce CO2
emissions on supply and
demand sides of all business
areas
Thermal efficiency of thermal
power plants
%
More than 38%
39.3
More than 38%
Transmission and distribution loss
%
Minimize loss
5.5
Minimize loss
MW (cumulative)
Approx. 300
327
Approx. 360
MW (YOY)
1% YOY reduction
23,409
(–16%)
1% YOY reduction
%
Maximize introduction
87
Maximize introduction
Contracted solar power
capacity from customers
kW (cumulative)
Increase purchases
322,174
Increase purchases
Contracted wind power
capacity from customers
kW (cumulative)
Increase purchases
123,350
Increase purchases
%
Maximize recovery
99.5
Maximize recovery
SOx emissions intensity
g/kWh
0.5
0.4
0.5
NOx emissions intensity
g/kWh
0.5
0.5
0.5
%
Approx. 99
99.4
Approx. 99
%
99
99.7
99
%
More than 85%
92
More than 85%
Contracted capacity of thermal
energy storage systems
Ratio of low-emission vehicle
introduction*5
SF6 gas recovery ratio
Promote a
Recycling-based
Society
Nearly accomplished Unit
Office electricity usage
Preserve
Regional
Environment
Accomplished Evaluation ratings
Waste recycling ratio
Coal ash recycling ratio
Green purchasing ratio
(office supplies)
Evaluation
FY2013
*1 Reduce to an average of 0.326kg-CO2/kWh (20% reduction from the fiscal year ended March 31, 1991) over the five-year period spanning the fiscal years ended March 31, 2009–2013
*2 After reflection of Kyoto mechanism credits
*3 Ratio of generation from non-fossil fuel power sources that do not emit CO2 (nuclear power, renewable energy) to total volume of electricity sold by the Company (including electricity purchased)
*4 Average for five-year period from the fiscal year ended March 31, 2012, to the fiscal ending March 31, 2016
*5 Includes electric vehicles and plug-in hybrid vehicles
Global Warming Prevention Measures
SEPCO has established a goal calling for CO2 emissions to be reduced
to an average of 0.326kg-CO2/kWh over the period spanning the
fiscal years ended March 2009–2013, and we have worked to cut
CO2 emissions to accomplish this goal. In this endeavor, we reduced
emissions from both the electricity supply and usage sides of operations, while also employing Kyoto mechanism credits to supplement
these activities.
In the fiscal year ended March 31, 2013, the long-term suspension of operations at the Ikata Nuclear Power Station resulted in
increased operation of thermal power plants, as was the case in the
previous fiscal year. For this reason, CO2 emission volume was
17,980,000 tons and CO2 emission intensity was 0.656kg-CO2/kWh.
Looking at the five-year average for the fiscal years ended March
2009–2013, CO2 emission volume was 12,090,000 tons and CO2
emission intensity was 0.428kg-CO2/kWh. All figures are after the
reflection of Kyoto mechanism credits.
CO2 Emission Volumes and CO2 Emissions Intensity (SEPCO)
Electricity sales volumes (10 million kWh),
CO2 emission volumes (10,000 tons)
CO2 emissions intensity (kg-CO2/kWh)
3,000
0.8
0.700
0.656
2,500
0.7
CO2 emissions
intensity
0.6
2,000
0.471
0.428
0.5
Target 0.4
0.326
0.3
1,500
1,000
0.2
500
0
0.1
1990
2008
2009
2010
2011
2012 Five-year
average
0.0
FY
CO2 emission volumes (after reflection of offset credits)
Electricity sales volumes
CO2 emissions intensity (before reflection of offset credits)
CO2 emissions intensity (after reflection of offset credits, from FY2008)
* Figures for the five-year average for CO2 emission volumes and CO2 emissions intensity are prior to the
application of carbon offset credits, which has been delayed due to application processes to the
United Nations. It is possible that these figures may be improved after the application of credits.
31
CSR Activities
Electricity Supply Side Measures
Improving the Thermal Efficiency of Thermal Power Plants
Improving the thermal efficiency of thermal power plants* enables us
to reduce the amount of coal, oil, liquefied natural gas (LNG), and
other fossil fuels used to power these plants, while also contributing
to lower CO2 emission volumes.
LNG, a type of fossil fuel, emits no sulfur oxide (SOx), soot, or dust
during generation, and results in low amounts of nitrogen oxide (NOx)
emissions. Moreover, it results in lower CO2 emissions during generation than coal or oil, giving it clear advantages over other fuel sources.
In consideration of these advantages, SEPCO has chosen to
replace existing thermal power generation facilities with highefficiency LNG combined cycle systems, which are expected to contribute to higher thermal efficiency. At the same time, we inspect
equipment on a daily basis and perform maintenance when necessary, and practice optimal operational management to prevent
declines in thermal efficiency and limit CO2 emissions.
Thermal Efficiency of Thermal Power Plants
(SEPCO, Power-Generating Terminal)
%
40
39
38
2008
2010
2009
Global Environment Preservation
Activities
Air and Water Pollution Prevention
* The ratio of heat energy that is turned into electrical energy
37
The Group provides customers with consulting regarding the
means of using electricity more effectively. During these consulting
activities, we also solicit these benefits of heat pump thermal storage
air-conditioning systems with the hope of spreading their usage.
Further, in conjunction with city redevelopment plans, we are
encouraging developers to install the heat source equipment for
building air conditioners in a centralized location (heat supply base).
SEPCO is currently operating such heat supply bases in three districts of Takamatsu City, Kagawa Prefecture.
Concentrating heat sources in this manner will contribute to significant reductions in energy usage. Other means of reducing energy
usage can be realized by utilizing the energy born out of heat differences in underground and ocean water.
2011
2012
FY
Electricity Supply Side Measures
Spreading Usage of Heat Pump Thermal Storage
Air-Conditioning Systems
To prevent air and water pollution, we are installing desulfurization
and denitrator systems at our thermal plants. These systems help
limit the release of SOx and NOx into the atmosphere during the
combustion of fossil fuels. As a result, emission intensities of such
substances by SEPCO are lower than the averages seen in principal
overseas nations.
Both thermal and nuclear power stations decontaminate waste
water using comprehensive effluent processing facilities. Sea water
used to cool the steam resulted from turbine rotation is released back
into the ocean at a temperature similar to that of the surrounding water.
To minimize the difference between water exhaust and the ocean, we
use cold water from close to the ocean floor for cooling purposes. Moreover, we continue to monitor exhaust vapors and water, and reports
measured emissions volumes to local government bodies.
SOx and NOx Emissions of SEPCO and Major Developed Nations
Heat pump thermal storage air-conditioning systems use cheaper
nighttime electricity to store heat, which can then be utilized for airconditioning purposes during the daytime. In summer, this heat is
stored in the form of cold water or ice, whereas it is stored as hot
water during the winter. The thermal energy storage unit of systems
is not influenced by the load of the air-conditioning unit, enabling
air-conditioning to be operated in an efficient and stable manner.
Further, as cold energy can be created using cool nighttime air, the
thermal energy storage unit helps improve efficiency of heat pumps.
In addition, usage of a thermal energy storage unit enables electricity
demand to be shifted from daytime to nighttime, effectively reducing
usage during peak hours.
SEPCO in
FY2012
Values for other
countries with
Shikoku Electric
Power set at 1
1.7 times
1.5 times
Germany
2005
UK
2005
3.3 times
2.7 times
America
2005
7.9 times
2.3 times
7.4 times
6.2 times
France
2005
0
SOx
1
2
3
NOx
4
g/kWh
Source: “Energy and Environment” published by the Federation of Electric Power Companies of Japan
Regional Heat Supply System
Takamatsu Port Passenger
Terminal Building
Ocean
Water
output
Water
intake
Seawater
Takamatsu
Symbol Tower
JR Hotel Clement
Takamatsu Sunport
Takamatsu
National Government
Building
Regional
distribution pipes
Seawater heat exchanger
Heat pump
海水取水管
Seawater
intake pipe
Pump
Pump
Thermal energy storage unit
Regional heat
supply base (B2)
* Regional heat supply system in place in the Takamatsu Sunport district (hot water supply)
32
Radiation and Radioactive Waste Management
SEPCO continually monitors the radiation levels at the site of the
Ikata Nuclear Power Station and in the surrounding areas to ensure
that there are no irregularities.
Radioactive waste produced by the Ikata Nuclear Power Station
comes in the form of vapors, liquids, and solids. Liquid waste is
treated using evaporators and filters. The condensed liquids that
remain after treatment are sealed in drums, which are stored safely
within the grounds of the plant. In this manner, we treat radioactive
waste using thorough methods appropriate to each type of waste,
thereby ensuring that they do not damage our precious environment.
Waste-filled drums are periodically transported to the Low-Level
Radioactive Waste Burial Center in Rokkasho Village, Aomori Prefecture, where they are buried.
Consideration for Biodiversity in Business Activities
SEPCO aims to achieve a state of harmony with the environment in
the areas surrounding where we operate. As one effort to this end, we
plant trees and shrubs on the grounds of our power plants to make
them more green.
When reclaiming land to serve as the site for Unit No. 3 of the Ikata
Nuclear Power Plant, we judged that the reclamation work would result
in the destruction of a natural alga
forest. To compensate for this loss,
we cultivated an alga forest in a different location using the rocks
unearthed during the process of constructing Unit No. 3. This alga forest
is now recognized as exhibiting the
vegetation characteristics of natural Replacement alga forest cultivated
in the sea neighboring the Ikata
alga forests in the same vicinity.
Forestry Activities in Cooperation with Local Communities
Working in cooperation with municipal governments and other organizations, SEPCO conducts thinning, tree planting, and other forestry
activities in forests that have been previously neglected.
We are participating in a forestry program in Kochi Prefecture
advocating forestry activities in cooperation with environmentally
friendly companies. Through this program, we have agreed to manage
a forest in Shimanto Town. In this forest, which has been dubbed the
“Shimanto Yonden Forest,” we hold forestry studies and other environmental education programs, and also conduct forest preservation
activities. These activities have enabled us to develop closer ties with
local schools and community members.
We also participate in Kagawa Prefecture’s “Forest Matching Project.” As part of this project, we have assumed responsibility for a
forest in the Goshikidai mountain
range of Kagawa Prefecture, which
we have named the “Kagawa
Yonden Goshiki Forest.” Employees
and their families cut the undergrowth of this forest and plant trees
on a volunteer basis.
Tree planting (Nakamura Branch Office)
Promotion of a Recycling-Based Society
The Group works to limit the output of waste from its activities, and
is actively recycling those wastes that are output.
Wastes output by SEPCO include coal ash, as well as gypsum,
metal scraps, and heavy and crude oil ash. We are working to recycle
these waste materials while taking other steps to increase the
Waste Output and Recycled Volumes in the Fiscal Year Ended
March 31, 2013 (SEPCO)
Output
(tons)
Recycled
Volume (tons)
Coal Ash
268,662
267,890
99.7
Gypsum
152,789
152,789
100.0
14,181
14,180
99.9
3,019
3,016
99.9
Heavy and Crude Oil Ash
3,004
2,913
97.0
Mud
2,639
982
37.2
110
54
49.1
1,586
1,347
84.9
445,990
443,171
99.4
Rubble
Metal Scraps
Waste Plastic
Other
Total
Recycling Ratio (%)
percentage of material effectively reused, and have successfully realized a high recycling rate.
Effective Reuse of Coal Ash
Almost all coal ash output by the Group is effectively reused as
cement materials, concrete admixtures, soil improvement additives,
or for some other purpose.
In particular, we have developed “Hai (Ash)-Tech Beads” that are
made by mixing coal ash with water, cement, and other materials,
and blending this mixture into a granular state. We promote usage of
these Hai-Tech Beads as a replacement for natural granular materials, such as rubble and sand.
Effective Reuse of Coal Ash (SEPCO)
Thousand tons
%
350
100
300
95
250
90
200
85
150
Output
2008
2009
Recycled volume
2010
2011
2012
80
FY
Recycling ratio (right scale)
Environmental Management
Enhancement of Environmental Management Systems
SEPCO has established environmental management systems (EMSs)
at all of its business sites. By applying the PDCA (plan–do–check–
act) cycle to plans for concrete measures to be implemented in
accordance with its EMSs, we are continually improving our environmental preservation initiatives.
Communication with Society
Through exchange activities with community members and the
publishing of printed materials, the Group is working to inform the
community with regard to the importance of our environmental preservation activities and the act of environmental preservation itself.
Environmental Month Initiatives
The Group has designated June of every year to be “Environmental
Month,” and we hold various events related to the environment
throughout Shikoku during this month.
In the fiscal year ended March 31, 2013, the theme for Environmental Month was “Saving the environment one step at a time, for the
future and for Shikoku.” Based on
this theme, we encouraged people
to play a part in environmental preservation through cleanup activities,
environmental poster exhibitions,
Environmental poster exhibition
and other events.
(Yonden Plaza Sunport)
*Figures are for the volume of waste for which SEPCO is considered the waste generator. However,
volumes of waste concrete from pillars (rubble) and insulating covers (waste plastic) for which the
waste generator is a subsidiary or affiliated company are included as these are intrinsically related to
the electric power business.
33
CSR Activities
Practicing Transparent Management
The Group actively communicates with its shareholders and other investors,
customers, community members, business partners, employees, and other
stakeholders to ensure the transparency of management.
Shareholders and Investors
Timely and Highly Transparent Information Disclosure
SEPCO actively discloses information to shareholders and other investors in a timely and transparent manner through the means listed
below. We are constantly enhancing our information disclosure efforts
and the quality of the information we provide.
• Active disclosure on our website (impartial and quick release of
information)
• Publication of materials that explain management policies and initiatives geared toward realizing the Yonden Group Vision
We also provide an email news service through which timely
investor relations (IR)-related information will be sent to shareholders or other investors at their request.
Enhancement of Communication Activities
SEPCO practices mutual communication with shareholders and other
investors through the following activities conducted in conjunction
with the announcement of the financial statements, and we are continually enhancing communication efforts.
• Explanatory forums regarding the Company conducted by representative directors for analysts and institutional investors (Tokyo)
• Periodic explanatory forums for private investors (Shikoku)
We also periodically hold tours of power plants and other facilities
to further deepen the understanding of stakeholders with regard to
our business.
Publication of the Light & Life Brochure
SEPCO publishes its Light & Life brochure
once every two months with the aim of providing information for the following purposes.
• Facilitating understanding with regard to the
activities of the Group
• Explaining Shikoku’s history, culture, and
traditional industries, as well as new initiatives implemented to invigorate the region
Business Partners
Socially Responsible Procurement Activities
The Group has established Green Procurement Guidelines. We also
receive proposals from suppliers for eco-friendly office supplies and
electricity generation related supplies and equipment. In these manners, we are working together with business partners to reduce our
environmental footprint.
Information regarding principal procured materials and consultation venues is made available on our website. We also list requests
directed toward business partners on our website to encourage them
to practice socially responsible corporate activities as well.
Employees
Promotion of Information Sharing
Customers and Community Members
Meetings with Electricity Advisors
SEPCO has introduced an advisory system to our business. Under this
system, advisors are appointed by us from opinionative demographics
of the surrounding communities, and these advisors offer opinions
and make requests directly to us. We also receive valuable input from
these advisors at meetings held at business sites and during tours of
power plants. Further, we hold yearly meetings at which the President
and other members of management communicate directly with the
community members from various demographics.
34
YONDEN GROUP, an in-house magazine containing information related to the Group, is published
periodically and distributed to all employees. We
believe this magazine will help share information
throughout the Group while also cultivating a
sense of unity.
In addition, each group company publishes its
own internal newsletter. For example, SEPCO publishes its YONDEN Terrace monthly, effectively
promoting communication between employees.
Fostering Employee Motivation
The Group wants all of its employees to be motivated to work in an active and creative
manner and feel satisfaction with their work. To this end, we strive to develop an
open-minded and lively workplace environment that encourages respect for employee
individuality and diversity.
Respect for Employee Individuality and Diversity
Diversity Promotion
The Group respects the diverse value systems of beliefs and lifestyles
of its employees. Capable and motivated employees are provided
with opportunities to exercise their abilities and advance to the
higher ranks of the Company, regardless of gender.
Diversity Promotion Initiatives (SEPCO)
Inspiring ambitious
action
• Open application system for Group employees
• In-house venture system
Fostering employee
motivation
Respecting diverse
beliefs and value
systems
Development of a workplace
environment that motivates
employees to work in
an active and creative
manner and feel
satisfaction with their work
• Support for female employees
• Specialist system
Supporting work-life
balance
•C
omprehensive range of
childcare and nursing
care support systems
• No-transfer work system
Fair Employee Evaluation Systems to Recognize
Employee’s Efforts
The Group has developed a human resource evaluation system that
evaluates the extent to which employees contributed to performance
and exercised their skills during work processes.
Moreover, once a year, SEPCO presents awards to employees that
have made substantial contributions to performance or proposed
significant new ideas. In addition, the Incentive Award System has
been introduced at all business sites to reward the employees at the
front line of operations for their diligent work or social contributions
whenever appropriate.
Employment of People with Disabilities and Senior Citizens
At March 31, 2013, SEPCO employed a total of 94 people with disabilities, or 2.05% of its employees. This level exceeds the legally
mandated level of 2.0%. Going forward, we will continue to support
people with disabilities in achieving independence and participating
in society.
In April 2006, the Group introduced the Senior Employment
System, which enables all employees that have reached the regular
retirement age of 60 to continue working up until 65 should they
choose to do so.
Employee Data (SEPCO)
Employee Numbers*
Average Age
Average Years of
Employment
91.9
43.0
21.7
388
8.1
40.6
19.9
4,772
100.0
42.8
21.6
(People)
Human Rights Education
SEPCO has a Human Rights Education Committee in place, and is
working to foster proper understanding and recognition among all
employees with regard to the burakumin issue, a human rights issue
unique to Japan, as well as sexual harassment, power harassment,
and various other human rights problems.
Each year, the Human Rights Education Committee formulates
policies for human rights education programs. Based on these policies, SEPCO actively holds group training sessions as well as workplace seminars and lectures at business sites. In these manners, we
are aggressive in promoting human rights education in order to
improve human rights awareness.
Further, the Yonden Group Human Rights Education Council has
been established to facilitate
the exchange of information
regarding human rights issues
and other pertinent information
with Group companies.
Male
Female
Total
4,384
(%)
* Employee numbers taken from SEPCO’s financial statements (Numbers as of March 31, 2013)
Employment of People with Disabilities (SEPCO)
Fiscal Years Ended March 31
2008
2009
2010
2011
2012
Percentage of Total Employees (%)
2.03
1.98
1.97
2.05
2.05
Employment of Senior Employees
Fiscal Years Ended March 31
2009
2010
2011
2012
2013
(plan)
Number of Senior Employees
106
141
171
188
Approx.
250
In-house human rights training
35
CSR Activities
Development of a Comfortable
Workplace Environment
Initiatives to Support Female Employees
In March 2010, SEPCO established a specialized female employee
support team in the Employee Relations & Human Resources Department to support female employees in exercising their talents and
skills and balancing their work-life with home-life. This team plays a
central role in the Group’s proactive efforts to assist female employees in developing their careers and establish a workplace environment that is supportive toward
such career development efforts.
In the fiscal year ended
March 31, 2013, we held a
seminar for cultivating female
managers that was directed at
female employees in supervisory positions.
Seminar for cultivating female managers
Childcare Support Systems
SEPCO offers the following childcare support programs to help
employees raising children balance their work-life and home-life,
regardless of gender.
• Childcare leave system
• Measures to help employees secure time for childrearing
• Communication system between employees using childcare leave
system and supervisors to help them come back to their job smoothly
These initiatives have been recognized,
with SEPCO receiving the Kurumin mark
from the Kagawa Labour Bureau for the
second time in May 2012. This mark is
awarded to companies that are supportive
toward child raising in accordance with the
Act on Advancement of Measures to Support Raising Next-Generation Children.
Kurumin certification mark
Principal Support Systems for Childbirth and Rearing (SEPCO)
36
From 6 weeks
prior to birth to
8 weeks after
aternity leave
M
Childbirth leave
(5 special paid leave days for birth by spouse, which are separate
from normal paid leave days)
Congratulatory monetary gift presented to celebrate childbirth
Until child’s
2nd birthday
hildcare leave
C
(For employees raising children under 2 years of age)
Until child’s
3rd birthday
xemption from overtime
E
(For employees raising children under 3 years of age)
Until child’s
graduation from
elementary
school
hildcare support flextime system
C
(Adjust start of work period by 10 minute increments)
Shortened work hour system for childcare support
(Shorten work hours by up to 2 hours a day)
Childcare sick leave
(15 paid leave days per year to care for sick child)
Deferred leave system
(Used to care for injured or sick child or participate
in school events)
Usage of Principal Childcare and Nursing Care Support Systems
in the Fiscal Year Ended March 31, 2013 (SEPCO)
Childbirth Leave
167
Childcare Leave
24
(Taken by 100% of female
employees giving birth)
Childcare Support Flextime System
13
Shortened Work Hour System for Childcare Support
32
Childcare Sick Leave
4
Deferred Leave System
(Used to care for child or participate in school events)
105
Prevention of Sexual Harassment and Power Harassment
SEPCO conducts online education programs for all employees geared
toward preventing sexual harassment and power harassment. In addition, a workplace harassment consultation office has been established
to respond to harassment complaints in a fair and appropriate manner,
while protecting the privacy of the employee that issued the complaint.
Accurate Management of Work Hours
The Group has introduced a system that allows work hours to be
accurately tracked and is taking other steps to prevent the occurrence of unpaid overtime. Through these efforts, management is
working together with employees to ensure that their work hours are
accurately managed.
Going forward, we will work to reduce work hours through improved
efficiency, while also actively encouraging employees to take paid
leave in a planned manner.
Total Actual Working Hours and Overtime (SEPCO)
HoursHours
1,943.2
1,944.8
1,947.0
2,000
20
1,500
16.8
16.2
16.5
1,000
10
500
0
15
5
2010
Total actual working hours
2011
2012
0
FY
Overtime (Per person per month)
Construction of a Favorable Relationship Between
Management and Employees
SEPCO encourages proactive communication between management
and employees, and is working to provide opportunities for such communication. For example, representatives from management and labor
unions meet to discuss and exchange opinions with regard to management plans and other important measures. These exchanges of opinion
are conducted at meetings of the Central Management and Employee
Cooperative Committee and forums held at business sites.
We also hold meetings of the Yonden Group Management and
Employee Council, whose members include representatives from the
management of Group companies and labor unions. This council serves
as a venue for sharing thoughts between management and employees
with regard to management issues present throughout the Group.
Proactive Promotion of
Employee Education
Stringent Occupational Health and
Safety Measures
Occupational Health and Safety Management System
Education Systems
Occupational health and safety managers* have been appointed to
each business site to promote health and safety management. In
addition, safety committees and health committees have been established at all business sites over a certain size. These committees are
headed by employees appointed by the Company and labor unions
and are responsible for discussing important matters related to safety
and health, respectively.
SEPCO’s operating environment is growing increasingly harsh. In recognition of this fact, we are systematically conducting employee education
and training programs. Through these programs, we hope to maintain the
current level of operational capabilities, pass these capabilities on to the
next-generation of employees, and educate these employees so that they
may support the Group’s ongoing growth into the future.
Our education system primarily consists of an effective mix of
group training programs. This system was developed out of our emphasis on self-education and on-the-job training, which is based on our
respect for the individual motivations and needs of each employee.
One principal group training is the Yonden Group Open Seminar. This
seminar is open to all Group employees, and therefore serves to supplement and support the education programs at each Group company.
The Group also conducts a “career design training” program. This
program is designed to help all employees develop a vision for their
career based on the realization that they are professionals. We believe
this will help them feel a sense of purpose in their work, as though
they are charged with a mission, and encourage them to actively
develop their professional skills.
* Safety managers, safety drive managers, health managers, industrial physicians, etc.
Safety Management Initiatives
The Group aims to reduce the number of industrial accidents through
the Group to zero, and the Yonden Group Safety Committee has been
established to help accomplish this goal. Guided by this committee,
we will work to strengthen the safety management systems of Group
companies and affiliated companies alike.
In addition, we have designated the 10-day period from July 1–10
of every year as the Yonden Group Safety Reinforcement Period, and
we use this period as an opportunity to raise safety awareness. During
this period, we implement various safety improvement initiatives
including safety patrols and lectures.
Education Systems
Number of Occupational Accidents Requiring Time Off From Work in
the Fiscal Year Ended March 31, 2013 (Yonden Group)
SEPCO
Subcontractors*
On-the-job
training
Total
Labor
3
7
10
Transportation
0
5
5
Total
3
12
15
Daily training
Target group
* Accidents by subcontractors represent the number of accidents when performing tasks contracted
from SEPCO.
Work improvement activities
Managers
General employees
General employee training (including training for new employees)
Manager training
Rank-based
training
Business leader training
Training through dispatch within Japan and overseas
Occupational Accidents by Industry (Frequency)
Yonden Group Open Seminar
People
4.5
Topic-based
training
4.0
Management
skill training
3.5
Business skill
training
Electrical technology training
Career design training
3.0
2.5
Work process
training
2.0
1.5
Divisional drills
1.0
0.5
0.0
2008
2009
2010
2011
Transportation / postal
Service
Manufacturing
Average for all industries
SEPCO
2012
Voluntary
education
e-learning
Correspondence education
FY
Electric power / gas
Frequency: Number of accidents resulting in casualties per 1 million work hours
Source:
Survey on Industrial Accidents, Ministry of Health, Labour and Welfare
Health Management Initiatives
The Group holds regular health examinations for employees and is
implementing measures to help employees improve both their physical and mental health.
For regular health examinations, we use the automated evaluation
systems that utilize the latest medical knowledge. These systems
enable us to provide employees with detailed healthcare advice automatically based on an accurate evaluation of their heath condition.
For mental health, we have introduced a stress check system that
allows employees to check their own stress levels. We also employ
counselors to help employees at SEPCO and Group companies deal
with their concerns and anxieties. These counselors can also be used
by the families of such employees.
Training for new employees
Technical training for the hydro power,
substation, and transmission divisions
Technical training for the telecommunications division
Rank-based training
37
CSR Activities
Coexisting in Harmony with Communities
The Group is committed to living in the community, moving forward with the community,
and prospering with the community. Guided by this basic stance, we actively support
and contribute to efforts to invigorate Shikoku, the region in which we operate.
Proactive Community
Development Activities
Initiatives to Attract Businesses
With the aim of attracting businesses to Shikoku, SEPCO provides
information relating to industrial parks in the region through the following means.
• Publication of the Shikoku Industrial Park Guide pamphlet, which
contains a variety of data on these parks
• Introduction of industrial parks in Shikoku on our website
• Publication of Renaissance Shikoku, which explains timely topics
related to Shikoku and introduces new projects being conducted in
the area
Renaissance Shikoku is sent to Shikoku-born managers and companies nationwide with the goal of cultivating interest in Shikoku as
a possible site for business development. Additionally, Group company Shikoku Research Institute, Incorporated, is advancing a business incubator project in which it lends research facilities at a low
rate. It is our hope that this project will assist new companies in their
efforts to expand into new fields.
Shikoku Industrial Park Guide
Renaissance Shikoku
Support for Culture and the Arts
In 1991, SEPCO established the Yonden Cultural Foundation. This
foundation supports development culture and the arts in Shikoku in
order to help develop a local society with an even richer culture heritage.
The foundation conducts the following projects on an ongoing basis.
• Scholarships for students from
Shikoku aspiring to develop a
career as an artist
• Honors for talented artists connected to Shikoku
• Local concerts and art exhibitions by scholarship students
• Assistance for arranging events Local concert by Yonden Cultural
Foundation scholarship students
featuring performing artists
Tourism Promotion Efforts
SEPCO is working to make Shikoku’s rich cultural heritage accessible
to all. To help make this heritage all the more engrossing, we conduct
cultural heritage programs in all four of Shikoku’s prefectures through
collaboration with the Shikoku Economic Federation and the Shikoku
Regional Development Bureau.
In addition, we actively participate in projects conducted by the
Organization for Promotion of
Tourism in Shikoku with the aim of
attracting greater numbers of
tourists to Shikoku. This organization is promoting tourism in Shikoku
through initiatives linking the
governments of the four prefectures
Guide for historical preservation district
with private companies.
in Mima City, Tokushima Prefecture
Support for Employees’
Social Contribution Efforts
Various Volunteer Leave Systems
SEPCO provides its employees with various systems enabling them to
acquire leave to conduct volunteer activities. In the fiscal year ended
March 31, 1995, we introduced an extended period volunteer leave
system, which allows employees to be absent from work for extended
periods of time to participate in long-term social contribution programs conducted by the Japan International Cooperation Agency or
local or national public service organizations. In addition, from the
fiscal year ended March 31, 2003, we began providing a volunteer
leave system that provides employees with seven special paid leave
days that can be taken for volunteer purposes and are separate from
standard paid leave days. Later, in the fiscal year ended March 31,
2009, we launched a special leave system that enables employees to
be absent from work without depleting paid leave days should they be
called to perform duties in court as a lay judge or potential candidate
for being a lay judge under the saiban-in (lay judge) system.
Awards for Employees’ Social Contributions
Group employees have been recognized by the community for their
daily social contributions in areas such as social welfare as well as
accident prevention through traffic safety and crime prevention activities. For example, at SEPCO, a total of 13 employees and eight of
our business sites received awards from the community in the fiscal
year ended March 31, 2013.
Most notably, a SEPCO
employee working in Tokushima
Prefecture witnessed a man falling
into the ocean from a levee. After
rescuing this man, the employee
was awarded a letter of appreciation from the prefectural police.
Employee receiving letter of appreciation
from the prefectural police
38
Proactive Communication with Society
Support for the Next Generation
Yonden Group Interaction Period
Energy Education
Every October, the Group institutes the Yonden Group Interaction
Period in an integrated manner. The purpose of this period is to conduct communication activities with customers in the community to
foster an understanding with regard to the Group’s CSR activities. We
hope that this will help cultivate a sense of community with the
Group and at the same time foster trust.
In the fiscal year ended March 31, 2013, this period was held for
12 days during October 20–31, when we conducted various events
throughout Shikoku under the slogan of “Yonden Group, filling our
lives with smiles that will last on into the future.” Major activities
during this period included social contribution and community interaction activities conducted through cooperation between the Group
companies and the Shikoku Electricity Safety Organization.
Since the fiscal year ended March 31, 2003, SEPCO has been conducting Special-visit Energy Lessons, and the aggregate total number
of people participating in these lessons exceeds 200,000. We hope
that these lessons will raise awareness with regard to energy and
environmental issues among children, who will assume an important
role in the future of society, and inspire them to work toward the
resolution of these issues.
These lessons are widely known among educators and community
members alike.
The Group also supports children’s efforts to study energy and the
environment on their own. To this end, we have created and published books for elementary and junior high schools that explain the
government’s instructions regarding energy education in accordance
with the government’s new teaching and educational guidelines, and
donated these books to schools in Shikoku. Further, we have established a Kids’ Museum page on our homepage designed to help the
children that will shape the future learn about energy. The contents
of this page are constantly being expanded.
Provision of Osettai to pilgrims
(Tokushima Branch Office)
Curve mirror cleaning
(Ikeda Branch Office)
Instructional
book regarding
energy education for junior
high schools
Tree thinning and cleanup activities
(Kochi Branch Office)
Energy education site for the children
that will shape the future
Special-visit Energy Lessons
Held (SEPCO)
Energy-efficient cooking class
(Matsuyama Branch Office)
FY
Times
Participants
Cumulative
Total*
2012
595
5,834
17,306
205,737
* Cumulative total for fiscal years ended
March 31, 2003–2013
Special-visit Energy Lesson
Internships
Sports class for elementary school
students (Uwajima Branch Office)
Restoration of sand art at Ariake beach
(Takamatsu Branch Office)
Yonden Group Interaction Period Activities in the Fiscal Year Ended
March 31, 2013
Activity
Donation of anticrime light posts and
sea level indicating signs to municipal
governments
Social
Contribution
Activities
Inspection of electrical equipment
at cultural and welfare facilities
Inspection of electrical equipment
at homes of elderly citizens living alone
Regional cleanup activities,
tree thinning, tree planting, etc.
Participants
919
articles
—
134 locations
56 houses
Approx.
3,100
242 locations
47 times
Approx.
1,600
Hands-on science events,
Special-visit Energy Lesson, etc.
56 times
Approx.
12,300
Sports classes, concerts, etc.
67 times
Approx.
8,800
181 locations
Approx.
700
Facility tours (power plants, factories,
training facilities, etc.)
Events
Times,
Locations, etc.
Customer home visits
SEPCO provides internship programs for students at universities,
graduate programs, and technical colleges with the aim of helping
encourage these students to pursue professional careers and fostering understanding with regard
to the electricity industry.
In addition, we also offer
internship and other work-study
programs for junior high and high
school students upon request. In
the fiscal year ended March 31,
2013, a total of 176 students Internship program at General Education
took advantage of these programs. & Training Center
Participants in Internship Programs [Students from Universities,
Graduate Programs, and Technical Colleges] (SEPCO)
FY
2008
2009
2010
2011
2012
Participants
35
35
52
50
82
39
VOICE
The following are statements from SEPCO employees regarding their daily CSR efforts and other related matters.
Providing High-Quality Electricity While Pursuing
Economically Sound Operations
Realizing a Stable
Electric Supply
Utilizing Expertise and Technologies to Contribute to the Safe
and Stable Operation of the Ikata Nuclear Power Station
Realizing a Stable
Electric Supply
Takeshi Shinmyo
Kenji Utsunomiya
Central Power System Operating Center,
Power System Operation Dept., System
Operation & Transmission Division
Radiation and Chemical Management
Section, Ikata Nuclear Power Station,
Nuclear Power Division
We comprehensively manage electricity generation volumes and
electricity flow on a 24-hour-day basis. Through a revolving shift
system, we keep constant vigil over the ever changing volume of
electricity usage, adjusting generation as needed. In order to
provide a stable flow of high-quality electricity at all times, it is
necessary to accurately predict electricity demand based on
such conditions as the season, day, and weather. At the same
time, we must consider the economic soundness of operations.
Further, in the rare event a blackout occurs, we must conduct
recovery procedures quickly and efficiently. For this reason, we
develop sophisticated technical skills and techniques through our
daily work and through drills, and are constantly working to refine
these abilities.
During the fiscal year ended March 31, 2013, operations at
the Ikata Nuclear Power Station remained suspended as an
indirect result of the Great East Japan Earthquake. As such, our
supply capacity was significantly reduced throughout the year.
Under these conditions, we maintained close coordination
between thermal power plants, responding quickly at the first
sign of abnormality in facilities. Due to these efforts, the year
passed without any major problems occurring. Going forward,
we will pursue more economically sound operations as we provide high-quality electricity.
I am responsible for the management of radiation measurement
equipment. This primarily entails managing the establishment
and inspection of monitoring posts and other facilities. Following
the accident at the Tokyo Electric Power Company, Incorporated’s
Fukushima Daiichi Nuclear Power Station, awareness and concern for radiation among customers has been on the rise. I
therefore feel it is important that we not only provide accurate
information on radiation levels, but also work to disclose this
information in a quicker and more considerate manner.
Accordingly, when constructing additional monitoring posts
around the Ikata Nuclear Power Station, we try to place these
posts in locations where they can be viewed by as many customers as possible. Further, to prepare for emergencies, we have
established backup plans for data transmission and electricity
supply to ensure that these services are not halted.
By utilizing the expertise and technologies we have accumulated up until this point, we hope to contribute to the safe and
stable operation of the Ikata Nuclear Power Station.
Making Decisions Based on Strict Stance Toward Legal
Issues and Flexible Inclusion of Social Concerns
Performing Environmental Impact Assessments to
Preserve the Local Environment
Promoting
Compliance
Advancing
Environmental
Preservation
Activities
Shinya Nagayama
Saki Tanifuji
Legal Group, General Affairs Dept.
I promote compliance by providing legal consulting and reviewing contracts at the request of business divisions.
In my duties, I do not simply provide answers to the inquiry.
Rather, I try to come up with a solution to the issue at hand by
investigating relevant legislation and judicial precedent. This
requires that I develop an understanding of the background of
each issue and examine all potential legal risks that are present.
I think it goes without saying that I take a strict stance toward
inquiries, and carefully discern any possible legal issues.
However, when formulating responses to issues, I do not limit my
scope to legal concerns. Rather, I flexibly include social concerns in the scope of consideration, thinking of how best for the
Shikoku Electric Power Group to act in order to earn greater
levels of trust from society.
40
Environmental Assessment Group,
Environmental Affairs Dept.,
When building power plants or other facilities, we first conduct
environmental impact assessments, the results of which are
reflected in the environmental preservation measures put in
place at that facility. This is one part of our efforts to preserve
the local environment.
When environmental impact assessments were conducted
with regard to the replacement of Unit No. 2 at the Sakaide
Thermal Power Station, I was in charge of evaluating the impacts
on the atmosphere. When I ran this assessment, I examined and
assessed to what extent environmental burdens could be
reduced by changing both the height of the smokestack and
NOx output while applying appropriate prediction methods in
accordance with various meteorological conditions. When the
assessments were completed, we explained the results to local
stakeholders. After passing the governmental review in February
2013, we have completed all assessment processes.
By faithfully implementing the measures devised through these
assessments, we aim to help preserve the local environment.
Providing Information that Meets the Needs of
Shareholders and Investors
Providing Proposals with the Aim of Maintaining a
Standing as a Trusted Partner to Our Clientele
Entrenching a
Customer-First
Mindset
Practicing
Transparent
Management
Sumiko Ayada
Ryuji Ogawa
Corporate Planning Group,
Corporate Planning Dept.,
Technical Solution Group,
Customer Service Proposals Center,
Sales & Customer Services Dept.,
Kochi Branch Office
At the Shikoku Electric Power Group, we believe that our efforts
to achieve ongoing growth and contribute to community development form the basis for the understanding and trust of all of
our stakeholders. Based on this belief, we are actively conducting investor relations (IR) activities guided by the Yonden Basic
IR Policy to inform stakeholders about these efforts.
In these activities, we constantly work to provide shareholders and other investors with information that is of interest to
them in reflection of the circumstances in the internal and
external environment. In other words, we are always considering
what information our stakeholders need, and we are devoted to
providing them with this information.
In addition, we feel that communication with those outside
of the Group through our IR activities is a viable means of
acquiring value feedback. For this reason, we are enhancing
communication within the Group and sharing the opinions and
requests we receive from outside of the Group with different
divisions so that they may be put to good use in other areas.
In the Technical Solution Group, we make sales proposals to
match a wide variety of customer energy needs, particular those
related to conserving electricity and other forms of energy and
facility maintenance.
A number of customers seeking the proposals of such solutions did so in light of the electricity shortages in summer 2012
as well as SEPCO’s own request for customers to save electricity
in conjunction with our in-house targets.
In response to such inquiries, we consider the individual
circumstances of every customer, and propose optimal methods
of improving the operational efficiency of facilities or suggest
that they convert to more-efficient equipment. We also strive to
explain these options in the easiest to understand manner.
When customers choose to introduce our electricity and energy
saving measures, we hold lectures to demonstrate these measures to the staff of the customer’s factory and other related
personnel. I feel immensely proud when customers state that
they plan to conduct all-hands drills with regard to the introduced measures, regardless of the disposition it may cause them.
Going forward, we will continue working to maintain our
standing as a trusted partner to our clientele.
Striking a Balance Between Work and Family While
Using the Necessary Systems
Passing on the Legacy of Shikoku Culture By Providing
Osettai to Pilgrims
Coexisting in
Harmony with
Communities
Fostering
Employee
Motivation
Ryohei Fujii
Civil & Architectural Engineering Sec.,
Electrical Engineering Dept.,
Kochi Branch Office
In 2012, my third child was born. In the light of this event, I
took advantage of SEPCO’s childcare support flextime system so
that I could go to work after taking my eldest daughter to kindergarten each morning. I did this for roughly five months.
Over this five-month period, I went to work 50 minutes later
in the morning and then stayed 50 minutes longer at night. This
enabled me to spend time with my children without losing any
work time. This change in work hours also made things easier
for my wife. I am very grateful for this system, as well as for the
understanding attitude of my supervisors and coworkers, which
made it possible for me to use this system.
I plan to continue playing an active role in my children’s
development into the future, and I take advantage of the
SEPCO’s life support systems as my home situation demands.
Mieko Otsu
Home Energy Lifestyle Service Sec,
Customer Service Proposals Center,
Sales & Customer Services Dept.,
Tokushima Branch Office
Since the fiscal year ended March 31, 2009, our Tokushima
Branch Office has provided Osettai to pilgrims. Osettai is rooted
in the Japanese spirit of Omotenashi, or hospitality, and entails
serving a cup of tea and snacks to pilgrims for free. We provide
this service with the help of local nursery school toddlers at
Ryozen-ji Temple in Tokushima Prefecture in Shikoku. This is
one of our voluntary campaigns conducted together with our
customers in the area. There are 88 unique sacred temples
where both Buddhism and Shintoism coexist within Shikoku.
Ryozen-ji is the first of these temples on the popular Shikoku
Junrei pilgrimage course.
When I see the children that assist us in providing Osettai
serving cups of tea to pilgrims, I am very pleased they are able
to connect with the unique culture of Shikoku. I would like to
continue to participate in this campaign to help children deepen
their compassion and pass this Omotenashi spirit down to our
descendants.
41
SEPCO is strengthening its business operations and management supervisory system under the guidance of the Board of Directors and an Audit
& Supervisory Board Member system.
Under this corporate governance system, we are practicing highly
transparent management based on swift, accurate decision making,
while also ensuring strict legal compliance and strong corporate ethics.
In these ways, we are endeavoring to maximize corporate value.
Board of Directors and Board of Managing Directors
SEPCO positions the Board of Directors as an organization to make
decisions on important matters of business execution, and supervise
the individual directors in the performance of their duties. The Board
of Directors, which comprises 13 members, including one external
director designated as an independent director in accordance with
the guidelines stipulated by the Tokyo Stock Exchange, meets once a
month in principle, and discusses and reports on important business
matters related to management.
As regards to the matters to be discussed by the Board of Directors
and other important matters, these are handled by the Board of Managing Directors, which comprises directors who hold executive positions
as well as full-time Audit & Supervisory Board Members, and in principle meets once a week to promote timely, appropriate management.
The Internal Audit Office of SEPCO conducts audits of the implementation status of the management cycle under the Group’s annual management plan, which describes the Group’s basic policies and plans.
It also investigates whether or not appropriate decisions are being
made and business operations are being conducted efficiently based
on the responsibilities and authority of each job position.
SEPCO has five Audit & Supervisory Board Members, three of whom
are external auditors designated as independent auditors in accordance with the guidelines stipulated by the Tokyo Stock Exchange. In
accordance with audit policies and plans established by the Board of
Audit & Supervisory Board Members, they conduct audits with a
focus on the legality of execution by directors by means of attending
meetings of the Board of Directors and other important committees,
holding regular exchanges of opinion with representative directors,
and reviewing and surveying important documents.
Corporate Governance System (SEPCO)
General Meeting of Stockholders
Appointment / Dismissal
Report
Instruction
Report
Appointment /
dismissal / supervision
Board of Managing Directors
(Deliberation of important issues)
Representative
Directors
Instruction
Directors
Report
Instruction
Report
Internal audit
Operations Division
Compliance Consultation Service
Regulation
Group Companies
Audit
Collaboration
42
Various Specialized Committees
(CSR Promotion Council, etc.)
Financial audit
Independent Accounting Auditors
Collaboration
Audits
Audit & Supervisory
Board Member’s Office
Audit & Supervisory Board Members / Audit & Supervisory Board
Directors / Board of Directors
They also hold hearings about the results of the internal audits
performed by the Internal Audit Office, and conduct regular exchanges
of opinion with both the independent accounting auditors and Audit
& Supervisory Board Members at affiliates, working to further raise
auditing precision and effectiveness.
Initiatives Regarding Internal Control Systems
To ensure the effective functioning of internal control systems that
support the appropriate, efficient execution of day-to-day business
operations by directors and employees, it is essential that SEPCO
maintains a sound corporate culture, identify chains of authority and
responsibility, and develop systems to manage risks. It is also essential that we regularly check the implementation status of this mechanism and make any necessary improvements.
We recognize the importance of winning the trust of society at
large. Aiming to conduct business activities that are legal, appropriate,
and efficient, the Board of Directors passed a resolution setting out our
policy on a System for Ensuring Sound Business. Going forward, we
will focus on operating our business in harmony with this policy.
Further, we will disseminate the policy to gain the understanding
of all our directors and employees, in order to strengthen our initiatives for enhancing our internal control systems.
Risk Management
Realizing the importance of practicing risk management in its business activities, SEPCO has formulated risk management rules that
define the basic aspects of risk management and action principles.
Every year, the management team checks and reviews risks that
have the potential to materially impact operations, and the results
are incorporated into the Group’s management plans for the following
fiscal year to ensure every effort is made to prevent or reduce the
impact of the risk.
For risks that cut across the entire Group, we set up expert committees as necessary and address those risks as appropriate based on
comprehensive assessments. For emergency situations brought on by
natural disasters or other circumstances, we have a separate set of
rules and a clear management structure that works to minimize the
damage and expedite recovery. Further, we encourage crisis management awareness among all employees and share information appropriately through such initiatives as establishing a crisis hotline in the
General Affairs Department as a helpdesk that gathers crisis information rapidly. Also, we have clarified systems and roles in the event of
a crisis and established measures to minimize damage and restore
operations as soon as possible.
Timely Disclosure of Corporate Information
SEPCO aims to ensure information is disclosed to shareholders and
other investors in a timely, appropriate, and fair manner. To facilitate
this endeavor, we have established a document entitled the Rules for
Timely Disclosure of Corporate Information, which compiles corporate
information items needing to be disclosed based on the regulations
applicable to companies listed on securities exchanges.
Should an event occur requiring disclosure, the appropriate chief
administrator responsible for information management will quickly
contact the General Manager of the Public Relations Department,
who is responsible for handling such information. After discussing the
details to be reported, the General Manager of the Public Relations
Department will disclose this information in a timely manner through
the Tokyo Stock Exchange’s Timely Disclosure Network (TDnet).
In addition, we actively communicate information that, while not
requiring disclosure based on timely disclosure guidelines, is judged
to be valuable to shareholders and other investors. This information
is communicated through press conferences and materials distributed to the press. Also, such information is posted on our website to
ensure the impartial and quick release of information. Further, one
may sign up for our investor relations email newsletter.
Moreover, we hold explanatory forums for analysts and institutional investors in conjunction with the release of our management
plans and financial results. For private investors, we periodically hold
forums explaining our business and also conduct facility tours.
Timely Disclosure System (SEPCO)
Company
information
Information Management
Representative
Contact
Chief administrator of
related division
General Manager of the Public
Relations Department
Information processing
representative
Disclosure
Tokyo Stock Exchange
Timely disclosure
through TDnet
Inquiry
Representative
Subsidiary
information
(General Manager of the
Business Planning
Department)
General Manager of the General
Affairs Department
(Determines need for disclosure)
Other information
disclosure
(Press conference, etc.)
43
Board of Directors / Audit & Supervisory Board Members
(As of June 26, 2013)
Directors
Momoki Tokiwa
Akira Chiba
Chairman of the Board
Kazutaka Kakinoki
Junichi Ietaka
Koji Yamaji
Executive Vice President
and Director
and Director
and Director
Susumu Tanigawa
Hiroshi Arai
Toshihiro Mizobuchi
Hiromichi Wada
Managing Director
Managing Director
Managing Director
Managing Director
Yoshinori Miyauchi
Hayato Saeki
Hitoshi Suezawa
Katsuhiko Takesaki
Managing Director
Managing Director
Managing Director
Director (Outside)
Division Manager of
Deputy Division Manager
of Nuclear Power Division
In charge of Secretary Dept., Employee
Relations & Human Resources Dept.,
General Education & Training Center,
and General Medical Services Center
General Manager of
In charge of Accounting & Finance
Dept., and Purchasing &
Materials Dept.
In charge of Public Relations Dept.,
General Affairs Dept.,
Plant & Facilities Sitting Dept., and
Tokyo Branch Office
Division Manager of System
Operation & Transmission Division
Division Manager of
Thermal Power Division
In charge of Information Systems &
Telecommunications Dept., and
Civil & Architectural Engineering Dept
Division Manager of
Customer Service Division
44
Mikio Kawai
Toshihiko Jigami
Shunsuke Aso
Masao Nishiyama
Eiji Ogawa
Senior Audit & Supervisory
Board Member
Audit & Supervisory
Board Member
Audit & Supervisory
Board Member (Outside)
Audit & Supervisory
Audit & Supervisory
Main Communication Methods at a Glance
Other than this report, the Yonden Group uses the following communication methods.
Main Communication Tools
Main Methods of Communication
Booklets, etc.
Community
Members
olution services based on
S
integrated Group operations
Customer Information Center,
helpdesks
Electricity meter reading, visits
Meetings with external advisors
Customers’ roundtable meetings
Community-building facilities
(Yonden Plaza, etc.)
Study tours of facilities
(power generation facilities, etc.)
Community-building activities
(cleanup initiatives and
community concerts)
Participation in local events
Advertising activities for
nuclear power,
visiting-for-dialogues initiative
Conducting questionnaire
surveys, etc. about residents’
attitudes
YONDEN GROUP
(pamphlet summarizing Group companies)
YONDEN NOW (pamphlet summarizing Company)
Light & Life (public relations magazine)
Renaissance Shikoku
(regional information magazine)
Shikoku Industrial Park Guide
Guide to All-Electric Homes, various pamphlets
promoting understanding of nuclear
power generation
YONDEN NOW
Business Partners
Business transactions
Shareholders and
Other Investors
eneral Meeting of Stockholders
G
Briefings for individual investors
Briefings for analysts and
institutional investors
Study tours of power
generation facilities, etc.
Environmental
Communication
Environmental
roundtable meetings
Special-visit
Energy Lesson
Tree-planting
initiatives
Local area
cleanup initiatives
Other
ebsites of
W
Yonden Group companies
Shikoku TODAY
(video summarizing Company)
Television commercials
Light & Life
ublication through helpdesk of material
P
procurement information
ebsites of
W
inancial results reports
F
Financial statements
Fact books
Reports for shareholders
Documents from Company briefings
ebsites of
W
email delivery service
et’s ECO LIFE! (pamphlet introducing
L
environmental preservation initiatives)
A Message to You from the Last Polar
Bear in the North Pole
(booklet for children)
ebsites of
W
Let’s ECO LIFE!
Employees
ours of workplaces by senior
T
management team
Surveys of employees’ attitudes
Labor-management roundtable
meetings, workplace roundtable
meetings organized by unions
Recreational activities at
workplaces
Various consultation services
related to life plans and
mental health
ONDEN GROUP
Y
(magazine including information about the Group)
YONDEN Terrace (in-house newsletter)
YONDEN Terrace
ebsites of
W
YONDEN GROUP
45
Third-Party Opinion
Read the CSR-related sections of the Yonden Group Annual Report 2013
Advancing Environmental Preservation Activities
Conducting Proactive Initiatives That Increase Positives
Companies’ interest in the environment is greater than ever. In
recent years, during which we have witnessed increases in global
warming and such abnormal weather as localized downpours,
more and more companies are seeking ISO 14001 or Eco Action
21 certification to improve their efficiency or garner further trust.
In this report, the section on advancing environmental preservation initiatives includes figures and graphs showing CO2, SOx,
and NOx emissions. As an electric power company handling large
amounts of energy, the Group is of course obliged to curb such
negative facets of its operations. In conjunction with these efforts,
however, the Group is proactively promoting initiatives that
increase positive factors, such as forest preservation and tree
planting, which I think merits praise. In particular, forest development under the forest matching advancement project in Goshikidai, Kagawa Prefecture is an initiative only a company working in
tandem with local communities could realize.
Business Activities
Innovate to Communicate Safety Measures and Economic Efficiency
in a Readily Understandable Manner
Given that the Group’s application to resume operations at Unit
No. 3 of the Ikata Nuclear Power Station—mentioned in the
interview with the president at the beginning of the report—is
attracting interest not only in the Shikoku region but in society at
large, the Group needs to communicate its safety measures and
matters relating to economic efficiency in a readily understandable manner. The “Voice” section explains the initiatives respective divisions’ highly motivated personnel are implementing as
they work on site at the power station. However, I feel that rather
than one or two personnel, hearing from more personnel would
have been preferable. Also, more pages could have been devoted
to an explanation of renewable energy. For example, furthering
understanding of solar power generation and wind power generation with respect to supply stability is important.
Hiroaki Itakura
Dean and Professor
Graduate School of Management
(Regional Management Research)
Kagawa University
Born 1962. Completed master’s course at business management graduate school
of the Massachusetts Institute of Technology and doctoral course in advanced interdisciplinary studies at Graduate School of Engineering of the University of Tokyo.
Books: Organizational Design in the Digital Era (Hakuto-Shobo Publishing Company),
Lectures on Business Administration (Keiso Shobo Publishing Co., Ltd.)
It is essential for the CSR report to include information closely
related to the day-to-day lives of local communities—the kind of
information that only the Yonden Group is able to provide. The
report mentions the Group’s plan to develop one of the largest
data centers in West Japan in Takamatsu, Kagawa Prefecture,
which has relatively few natural disasters, as part of the Group’s
efforts to take the challenge of creating new added value. A plan
using the region’s characteristics to create employment is the
kind of topic that interests readers. Further, to offer one suggestion, including information on efforts to spread power charging
facilities for electric vehicles in Shikoku would make local residents feel closer to the electric power company.
Practicing Transparent Management
Promote Interactive Communication with External Stakeholders
Practicing transparent management has led the Yonden Group to
establish an external advisory system and customers’ roundtable
meetings, thereby creating opportunities for it to listen to opinions and requests from external stakeholders. These meetings
are commendable ways of facilitating dialogue with stakeholders
and advancing PDCA (plan, do, check, act) cycles. I hope future
CSR reports will incorporate such two-way communication by
featuring stakeholder opinions that reflect a variety of standpoints and the Group’s responses to them.
Response to the Third-Party Opinion
Professor Itakura primarily conducts surveys and research focused on enabling
In addition, for the Yonden Group’s continued existence and develop-
regional revitalization and fosters leaders who will support regional development.
ment, coexisting with local communities is indispensable. In accordance with
I would like to thank him sincerely for using his perspective to provide valuable
Professor Itakura’s advice, we will focus on communicating the Yonden
insights about this report.
Group’s unique capabilities to cultivate interest and a sense of closeness
This year, we have incorporated a CSR report, aimed at such general
among local communities.
stakeholders as the residents of local communities, into our annual report,
Our meetings with outside advisors and customers’ roundtable meetings
which previously mainly included management topics and business summa-
have received favorable evaluations as PDCA (plan, do, check, act) tools for
ries for investors. As a result, the Yonden Group hopes to communicate that
external dialogue. By including information on the progress and achievements
CSR initiatives are an integral part of its business management and that it
of such initiatives in this report, continuing to hold close dialogues with stake-
advances business activities and CSR initiatives in a unified manner.
holders, and pursuing open business management, the Yonden Group aims to
By incorporating photographs, charts, and comments from personnel in the
continue to earn stakeholders’ trust and regard.
report, we sought to create a report with a layout that was appealing and easy
to read. This was an aspect of the report Professor Itakura praised.
On the other hand, in relation to our business activities Professor Itakura
pointed out that it is important to enhance explanations of the Ikata Nuclear Power
Station’s safety measures and economic efficiency as well as of renewable energy.
Going forward, we will take time to clearly explain issues readers are interested in, such as the safety measures at the Ikata Nuclear Power Station.
46
Junichi Ietaka
Executive Vice President and Director
Shikoku Electric Power Company
Financial Section
2013
48
Eleven-Year Financial Summary
50
Analysis of Business Results and Financial Position
(Consolidated)
53
Business and Other Risks
54
Consolidated Balance Sheet
56
Consolidated Statement of Operations
57
Consolidated Statement of Comprehensive Income
58
Consolidated Statement of Changes In Equity
59
Consolidated Statement of Cash Flows
60
Notes to Consolidated Financial Statements
47
Eleven-Year Financial Summary
Shikoku Electric Power Company, Incorporated and consolidated subsidiaries
Years ended March 31
Financial Performance
Operating Revenues
Electric
Other
Operating Expenses
Electric
Other
Operating Income
Ordinary Income (Loss) + Interest Expense
Income before Income Taxes
and Minority Interests in Net Income
Net Income
Financial Position
Total Assets
Total Equity*2
Interest-bearing Debt
Cash Flows
Net Cash Provided by Operating Activities
Net Cash Used in Investing Activities
Net Cash Used in Financing Activities
Term-end Balance of Cash and Cash Equivalents
Per Share of Common Stock
Net Income
Cash Dividends Applicable to the Year
Equity
Financial Indicators
Operating Income Margin
Return on Assets*3
Return on Equity*4
Shareholders’ Equity Ratio
Profit Returned to Shareholders (%)*5
Dividend Payout Ratio (%)
2003
2004
2005
2006
2007
¥ 584,743
529,531
55,212
515,677
460,566
55,111
69,066
67,562
¥ 561,891
508,212
53,679
501,905
449,209
52,696
59,986
60,750
¥ 576,263
522,216
54,046
515,450
459,693
55,756
60,812
61,949
¥ 567,410
514,653
52,757
514,231
461,799
52,431
53,179
53,917
¥ 579,042
520,497
58,545
518,835
463,141
55,693
60,207
62,975
40,500
40,018
41,853
42,593
43,232
25,654
27,417
26,901
27,650
28,259
1,445,041
372,259
776,542
1,405,629
379,224
729,174
1,363,119
386,599
653,258
1,459,552
393,460
752,013
1,435,821
390,203
727,148
155,541
(69,383)
(88,364)
6,314
142,514
(68,539)
(74,108)
6,749
158,299
(60,667)
(98,505)
6,412
(4,817)
(66,347)
72,337
7,584
125,553
(70,619)
(56,524)
5,993
¥ 96
50
1,413
¥ 105
50
1,479
¥ 105
50
1,537
¥ 110
50
1,601
¥ 117
50
1,636
11.8
4.6
6.9
25.7
88.5
52.1
10.7
4.3
7.3
26.9
80.8
47.6
10.6
4.5
7.0
28.3
82.4
47.5
9.4
3.8
7.1
26.9
84.0
45.4
10.4
4.4
7.2
27.1
85.7
42.8
*1 U.S. dollar amounts are translated from yen, at the rate of ¥94=US$1.
*2 Effective from fiscal 2006, the fiscal year ended March 31, 2007, SEPCO and its consolidated subsidiaries adopted the new accounting standard for the presentation of net assets (“Accounting Standard for
Presentation of Net Assets in the Balance Sheet (No. 5) and its Implementation Guidance” (No. 8), issued by the Accounting Standards Board of Japan (ASBJ)). This accounting change has also been applied to
figures up to fiscal 2005 (the fiscal year ended March 31, 2006).
*3 (Ordinary income (loss) + Interest expense)/Average total assets
*4 Net income for fiscal year under review/Average shareholders’ equity
*5 (Retirement of treasury stock + Dividends)/Net income
Data on Electric Power Business
Years ended March 31
Electricity Sales
Lighting (Residential)
Power (Industrial and Commercial)
Sales to Other Utility Companies
Electricity Generated and Purchased
by Power Source
Hydro
Nuclear
Coal
Oil & Gas
LNG (Liquefied Natural Gas)
Renewable Energy*6
Numbers of Customers
Lighting (Residential)
Power (Industrial and Commercial)
Nuclear Power Plant Uptime Ratio
Numbers of Employees
(Shikoku Electric Power)
2003
2004
2005
2006
2007
34,227
8,934
17,314
7,979
33,691
8,858
17,415
7,418
35,444
9,172
18,039
8,233
35,000
9,410
18,558
7,032
35,148
9,326
18,835
6,987
38,143
37,462
39,205
38,698
38,799
3,279
15,564
14,288
4,979
—
33
3,814
15,076
14,223
4,286
—
63
4,276
13,713
14,802
6,333
—
81
2,578
15,210
15,582
5,211
—
117
3,592
14,704
15,328
5,003
—
172
2,867
2,400
466
2,871
2,414
457
2,874
2,426
448
2,871
2,431
440
2,875
2,444
431
87.9
84.9
77.4
85.9
83.0
5,274
4,872
4,892
4,433
4,432
*6 Renewable energy comprises solar energy, wind power, and energy from waste material and biomass.
*7 The continuously employed persons based on “Law concerning Stabilization of Employment of Older Persons” are included in the number of employees from fiscal 2012.
48
Millions of yen
2008
2009
2010
2011
2012
¥ 618,106
550,392
67,713
563,831
499,984
63,846
54,275
58,302
¥ 635,132
569,464
65,668
580,850
519,930
60,920
54,282
57,902
¥ 545,393
486,442
58,951
502,969
449,979
52,990
42,424
46,002
¥ 592,123
519,807
72,315
532,100
465,390
66,709
60,022
57,925
¥ 592,142
528,401
63,741
586,352
528,258
58,094
5,789
7,777
44,668
46,510
35,766
39,175
26,431
29,104
22,079
23,646
1,420,775
373,988
712,195
1,405,671
381,004
690,553
1,383,190
360,156
686,742
1,379,859
351,384
657,836
2013
Thousands of
U.S. dollars*1
2013
¥ 561,783
487,012
74,771
612,121
543,797
68,324
(50,337)
(47,538)
$ 5,976,414
5,180,978
795,436
6,511,925
5,785,074
726,851
(535,500)
(505,723)
(3,675)
(59,415)
(632,074)
(9,357)
(42,886)
(456,234)
1,375,197
326,815
671,800
1,385,440
285,201
734,684
127,140
(76,549)
(51,282)
5,301
125,488
(82,661)
(41,961)
6,166
126,793
(82,990)
(43,093)
6,876
145,608
(89,364)
(57,566)
5,526
81,605
(75,074)
(3,893)
8,164
15,781
(66,245)
56,651
14,351
¥ 113
50
1,627
¥ 128
50
1,681
¥ 100
50
1,668
¥ 111
60
1,684
¥ (45)
60
1,586
¥ (208)
—
1,384
8.8
4.1
6.9
26.3
94.5
44.1
8.5
4.1
7.7
27.1
85.6
39.2
7.8
3.3
6.0
26.0
109.9
50.1
10.1
4.2
6.6
25.4
108.3
53.9
1.0
0.6
(2.8)
23.7
—
—
(9.0)
(3.4)
(14.0)
20.6
—
—
2008
2009
2010
2011
2012
2013
37,137
9,651
19,618
7,868
34,828
9,565
19,136
6,127
30,942
9,464
18,032
3,446
34,223
10,130
18,970
5,123
32,652
9,793
18,651
4,208
28,437
9,625
17,785
1,027
40,897
38,456
34,420
37,761
35,838
30,959
2,549
15,415
16,472
6,181
—
280
3,252
14,970
15,298
4,649
—
287
2,661
14,102
13,900
3,208
196
353
3,277
16,104
13,597
2,497
1,819
467
3,611
6,698
17,395
5,398
2,235
502
3,706
—
16,400
7,795
2,397
662
2,863
2,442
421
2,859
2,449
410
2,861
2,461
400
2,869
2,478
391
2,872
2,490
382
2,872
2,499
373
86.8
84.5
79.6
90.9
37.7
—
14,738,723
3,034,053
7,815,787
167,882
(704,734)
602,670
152,670
Yen
U.S. dollars*1
$ (2.21)
—
14.72
%
Million kWh
Thousands
%
People
4,445
4,474
4,549
4,556
4,570
4,772*7
49
Analysis of Business Results and Financial Position (Consolidated)
Business Performance (April 1, 2012–March 31, 2013)
Electricity Demand
Electricity Supply Operations
Electricity demand in the fiscal year ended March 31, 2013,
The amount of hydroelectric power generated and purchased
declined 3.6% year on year, to 27,410 million kWh. Of this,
increased 2.6% year on year, to 3,706 million kWh, due to an
sales for lighting (residential) were down 1.7% because the
abundance of water surpassing that of the previous fiscal year.
effect of electricity conservation was greater than in the previous
Meanwhile, no nuclear power was generated due to the stoppage
fiscal year. Sales to large industrial customers decreased 6.7%
of all facilities of the Ikata Nuclear Power Station.
due to softening manufacturing activity.
As a result, total thermal power generated and purchased
Sales of surplus capacity, which includes accommodating the
increased 6.2%, to 26,592 million kWh.
needs of other electric power companies, were down 75.6% year
on year, to 1,027 million kWh.
As a result, total electricity sales amounted to 28,437 million
kWh, a year-on-year decrease of 12.9%.
Volume of Electricity Sold
Trend in Electric Power Generation and Purchasing by Power
Million kWh
Million kWh
40,000
60,000
1,027
30,000
40,000
662
17,785
20,000
26,592
20,000
10,000
9,625
3,706
0
2008
2009
2010
2011
0
2012
FY
■ Lighting ■ Power ■ Sales to other utility companies
2008
2009
2010
2011
2012
FY
■ Hydro ■ Nuclear ■ Thermal ■ Renewable energy
Operating Results
In the fiscal year under review, operating revenues saw a 5.1%, or
Due to the above, the Group recognized an operating loss of
¥30.4 billion, year-on-year decrease, to ¥561.7 billion, reflecting
¥50.3 billion, compared with the previous fiscal year’s operating
declines in electricity demand and sales of surplus capacity.
income of ¥5.7 billion. After adjustment for other expenses, such
Operating expenses increased 4.4%, or ¥25.8 billion, to
as interest expense, ordinary loss was ¥57.0 billion, compared
¥612.1 billion. This rise can be attributed to a significant increase
with the previous fiscal year’s ordinary loss of ¥1.8 billion, while
in expenditures for fuel and power purchases due to the need to
net loss after the deduction of income taxes was ¥42.8 billion,
generate and purchase a greater volume of thermal power because
compared with the previous fiscal year’s net loss of ¥9.3 billion.
of the stoppage of the Ikata Nuclear Power Station. These factors
offset Companywide cost reduction efforts.
Operating Revenues / Operating Income
Net Income / Return on Equity
Billions of yen
Billions of yen
300
900
Billions of yen
%
100
40
50
20
0
0
561.7
200
600
100
300
0
0
(50.3)
2008
2009
2010
2011
■ Operating revenues ■ Operating income (right scale) 50
2012
(42.8)
(14.0)
(100)
FY
(50)
2008
2009
2010
■ Net income Return on equity (right scale)
2011
2012
(20)
FY
Cash Flows
Net cash provided by operating activities was ¥15.7 billion,
Net cash provided by financing activities was ¥56.6 billion,
largely due to depreciation and amortization, which counteracted
reflecting proceeds from issuance of bonds and proceeds from
the recognition of ordinary loss. Net cash used in investing ac-
debt to cover free cash flow and cash dividends paid. Cash and
tivities was ¥66.2 billion due to investment in maintaining and
cash equivalents at year-end increased ¥6.1 billion.
upgrading operating assets.
As a result, free cash flow amounted to a negative ¥50.4 billion after deducting net cash used in investing activities from net
cash provided by operating activities.
Cash Flows
Cash and Cash Equivalents
Billions of yen
Billions of yen
20
200
100
14.3
15
56.6
15.7
10
0
(66.2)
(100)
(200)
5
2008
2009
2010
2011
0
2012
FY
2008
2009
2010
2011
2012
FY
■ Net cash provided by operating activities ■ Net cash used in investing activities ■ Net cash provided by (used in) financing activities
Financial Position
Total assets stood at ¥1,385.4 billion on March 31, 2013, up
Liabilities totaled ¥1,100.2 billion, up ¥51.9 billion, following
¥10.3 billion from the previous fiscal year-end. This was mainly
a rise in bonds and debt.
due to increases in deferred tax assets and long-term investment,
Total equity was down ¥41.6 million, to ¥285.2 billion, due to
which offset lower operating assets due to progress in deprecia-
the recording of the net loss and cash dividends paid.
tion and amortization.
Equity / Liabilities / Total Assets
Shareholders’ Equity Ratio / Interest-bearing Debt Ratio
Billions of yen
%Times
1,600
40
1,385.4
1,200
4
30
2.6
3
20
20.6
2
1,100.2
800
10
400
1
285.2
0
2008
■ Equity ■ Liabilities
2009
2010
Total assets
2011
2012
0
FY
2008
2009
Shareholders’ equity ratio
2010
2011
2012
0
FY
Interest-bearing debt ratio (right scale)
51
Analysis of Business Results and Financial Position (Consolidated)
Dividend Policy
Paying stable dividends is SEPCO’s basic policy for returns to
In the fiscal year ended March 31, 2013, SEPCO regrettably
shareholders, which are decided in light of comprehensive con-
suspended the payment of cash dividends because it recognized a
sideration of business results, financial position, and medium-to-
significant net loss in the fiscal year under review due to the sig-
long-term business conditions. Further, stipulations in SEPCO’s
nificant increase in expenditures for fuel and power purchases ac-
articles of incorporation enable the payment of interim cash divi-
companying the stoppage of the Ikata Nuclear Power Station and
dends pursuant to Article 454, Paragraph 5 of Japan’s Companies
because the timing of the Ikata Nuclear Power Station’s resump-
Act, and SEPCO’s basic policy is to pay two cash dividends a year,
tion of operations and other business conditions remain uncertain.
an interim dividend and a year-end dividend. The interim dividend
is set by the Board of Directors, while the final year-end dividend
is set by the general meeting of stockholders.
Dividend Payout Ratio / Profit Returned to Shareholders
Buy-back and Cancellation of Treasury Stock
%
Millions of shares
120
18
90
12
60
6
30
0
0
2008
2009
2010
2011*
2012*
FY
Dividend payout ratio Profit returned to shareholders
（6）
2008
2009
2010
2011
2012
FY
■ Buy-back ■ Cancellation
* Dividend payout ratio and profit returned to shareholders for the fiscal year ended March 31, 2012 and the
fiscal year ended March 31, 2013 are not provided due to the recording of net loss.
Other
Capital Investment
Capital investment relating to our electric power business totaled
¥53.1 billion (before the elimination of intra-company transactions). Investments included those to install additional safety
As a result, consolidated capital investment for the fiscal year
ended March 31, 2013, totaled ¥63.9 billion (after the elimination of intra-company transactions).
measures at the Ikata Nuclear Power Station, a move taken in
Research and Development
consideration of the accident at a nuclear power station in
The research and development activities of the Group are carried
Fukushima Prefecture, as well as those to upgrade our transmis-
out mainly by its subsidiary Shikoku Research Institute Incorpo-
sion and transformation facilities to ensure that they can continue
rated. The purpose of these activities, which relate primarily to
to supply power in a reliable manner.
the supply and use of electricity, is to improve our technology
In our other business segments, the Group invested a total of
and competitiveness.
¥12.2 billion (before the elimination of intra-company transac-
In the fiscal year ended March 31, 2013, the Group invested
tions) in projects related to optical communications services and
a total of ¥5.0 billion in research activities centered on the elec-
the construction of data centers.
tric power business.
Outlook for the Fiscal Year Ending March 31, 2014 (April 1, 2013–March 31, 2014)
Electricity Demand
Operating Results
Electricity demand is expected to be approximately 27.4 billion
Operating revenues are expected to rise approximately ¥68.0 billion
kWh, unchanged from the previous fiscal year. However, due to a
year on year, to around ¥630.0 billion, as a result of higher electric-
lower sales of surplus capacity to other electric power compa-
ity rates and an increase in the fuel price adjustment amount.
nies, total electricity sales are likely to edge down 0.7% from the
Due to the uncertainty as to when operations will resume at the
previous fiscal year, to approximately 28.3 billion kWh.
Ikata Nuclear Power Station, the Group has chosen not to release
forecasts for earnings at this point in time.
(The outlook for the year ending March 31, 2014, is based on an
announcement made on August 6, 2013.)
52
Business and Other Risks
The following is a description of the principal risks to the financial position, operating results, and cash flows of the Group.
The forward-looking statements below represent estimates
made as of the date of the publication of this annual report.
Risks Pertaining to the Operating Environment
Economic, Social, and Weather Conditions
The electric power business accounts for 90% of the Group’s
consolidated operating revenues. Electricity sales volumes can
be affected by changes in trends in economic, social, and weather conditions. The Group’s business performance is particularly
susceptible to cool summers and warm winters.
Price Fluctuations in the Fuel Used for Thermal Power Generation
The prices of crude oil, coal, and other fuels used in our thermal
power generation business are affected by trends in the international market and currency exchange rates. The impact of these
variables on our business performance is limited by a system of
appropriate adjustments under which the impacts of changes in
fuel prices and exchange rates are reflected in our electricity
rates. Therefore, the effects these variables have on the Group’s
business performance are limited.
However, the Group’s business performance may be impacted
if fuel costs or currency exchange rates fluctuated to a significant degree.
Influence of Interest Rate Fluctuations
The Group’s interest-bearing debt totaled ¥734.6 billion as of
March 31, 2013. Future fluctuations in interest rates have the
potential to influence our business performance.
However, the majority of the Group’s interest-bearing liabilities
are in the form of long-term debt at fixed interest rates; therefore,
interest rate fluctuations can have only a limited impact on the
Group’s business performance.
Risks Relating to Environment Changes
for the Electric Power Business
Revisions to Government Energy Policy and Systems Pertaining
to Electric Power Companies
Currently, Japan’s government is considering revisions of its
Basic Energy Plan, which stipulates basic policies and measures
in relation to energy supply and demand. Further, in relation to
systems pertaining to electric power companies, policies have
been disclosed with a view to reforming electric power systems,
including expanded operation of wide-area power systems,
comprehensive liberalization of retail, and measures to further
ensure the neutrality of the transmission sector.
Such revisions of policies or systems have the potential of
impacting the Group’s business performance.
Changes in Nuclear Power Regulations or Changes in Expenses
Arising from Nuclear Fuel Cycles
In light of the serious accident at the Fukushima Daiichi Nuclear
enhance safety and reliability, including diversification of external power sources. However, depending on the content of regulations affecting nuclear power stations going forward, including
trends in the government’s inspections for confirming conformance with new regulatory standards, expenses arising from an
increase in fuel costs for alternative thermal power or safety
measures accompanying the stoppage of its nuclear power station could affect the Group’s business results.
The uncertainties of costs arising from the nuclear fuel cycle,
including reprocessing spent fuel and disposing of radioactive
waste, and decommissioning nuclear power units have been mitigated by various governmental systems and measures. However,
the Group’s business performance is subject to the influence of
prospective changes in these systems and measures, changes in
estimates of future costs, the operational status of reprocessing
facilities, and similar changes.
Strengthening Environmental Regulations
In the electric power business, the Group is reducing emissions
of greenhouse gases through the operation of nuclear power generation facilities and the introduction of our LNG thermal power
generation facilities. The business performance of the Group
could be affected as environmental regulations are strengthened
as part of efforts to create a low-carbon society in the future.
Risks Pertaining to Business Activities
Operational and Facility-Related Issues
The Group’s business is focused on the electric power business.
To provide high-quality services, the Group maintains and inspects its facilities on a regular basis. At the same time, we
thoroughly evaluate our exposure to natural disaster-related risks
and work to implement appropriate and effective safety measures
for our facilities, which we continually upgrade to reflect advances in knowledge and technologies. However, the Group’s business
performance is exposed to the risk of operational problems or
damage to facilities due to malfunctions, accidents, or natural
disasters, such as a major earthquake, tsunami, or typhoon.
The Group’s business performance could be affected by the
occurrence of these events.
Other Businesses
The Group is committed to promoting other businesses by carefully investing in their future prospects and profitability. The anticipated revenues from these initiatives are vulnerable to any
sudden deterioration in the market environment and other factors.
The Group places priority on implementing the strict and appropriate management of customer information in the Group’s possession
as well as other important business information by establishing
information management rules and systems, training employees,
and other means. The Group’s business performance could be
affected by the leakage of such information outside the Group.
Power Station of Tokyo Electric Power Company, Incorporated, as
well as implementing emergency safety measures and severe
accident countermeasures at its nuclear power station, the
Group is continuing to take independent countermeasures to
53
Consolidated Balance Sheet
March 31, 2013
Millions of yen
ASSETS
2013
2012
Thousands of
U.S. dollars (Note 1(a))
2013
PROPERTY, PLANT AND EQUIPMENT (Note 2):
Utility plant, at cost
Other plant and equipment, at cost
Construction in progress
¥ 2,952,708
¥ 2,929,258
$ 31,411,787
227,050
220,561
2,415,425
24,968
19,759
265,617
3,204,727
3,169,579
34,092,840
Less:
Contributions in aid of construction
Accumulated depreciation
(33,689)
(32,102)
(358,393)
(2,320,737)
(2,271,986)
(24,688,691)
(2,354,426)
(2,304,088)
(25,047,084)
Net property, plant and equipment
850,300
865,491
9,045,744
NUCLEAR FUEL, LESS ACCUMULATED AMORTIZATION
140,802
138,402
1,497,893
Investment securities (Notes 3 and 13)
44,196
42,468
470,170
Investments in and advances to unconsolidated subsidiaries
and affiliates
33,171
27,791
352,882
1,628
1,825
17,319
116,146
121,928
1,235,595
53,326
35,110
567,297
INVESTMENTS AND OTHER ASSETS:
Long-term loans receivable
Fund for reprocessing of irradiated nuclear fuel (Note 13)
Deferred tax assets (Note 10)
Other assets
Total investments and other assets
25,718
19,010
273,595
274,187
248,134
2,916,882
CURRENT ASSETS:
Cash and cash equivalents (Note 13)
14,351
8,164
152,670
Notes and accounts receivable (Note 13)
59,411
61,107
632,031
Inventories (Note 4)
32,713
35,952
348,010
4,816
8,759
51,234
11,893
12,185
126,521
Deferred tax assets (Note 10)
Other current assets (Note 12)
Allowance for doubtful accounts
Total current assets
TOTAL
See notes to consolidated financial statements.
54
(3,035)
(3,000)
(32,287)
120,150
123,168
1,278,191
¥ 1,385,440
¥ 1,375,197
$ 14,738,723
Millions of yen
LIABILITIES AND EQUITY
2013
Thousands of
2013
2012
LONG-TERM LIABILITIES:
¥ 615,588
¥ 521,533
21,720
21,174
231,063
Reserve for reprocessing of irradiated nuclear fuel
131,217
136,374
1,395,925
Asset retirement obligations (Note 8)
103,879
100,843
1,105,095
11,733
15,655
124,819
884,138
795,581
9,405,723
Long-term debt (Notes 5 and 13)
Liability for retirement benefits (Note 6)
Other long-term liabilities (Notes 1(t) and 12)
Total long-term liabilities
$ 6,548,808
CURRENT LIABILITIES:
Current portion of long-term debt (Notes 5 and 13)
65,513
70,246
696,946
Short-term borrowings (Notes 7 and 13)
62,000
88,000
659,574
Notes and accounts payable (Note 13)
48,244
50,927
513,234
584
578
6,212
22,869
26,414
243,287
Income taxes payable (Note 10)
Accrued expenses
Other current liabilities (Notes 12 and 17)
Total current liabilities
RESERVE FOR FLUCTUATIONS IN WATER LEVEL
12,656
14,815
134,638
211,869
250,983
2,253,925
4,231
1,817
45,010
145,551
145,551
1,548,414
35,198
35,198
374,446
136,908
185,992
1,456,468
(41,410)
(41,400)
COMMITMENTS AND CONTINGENT LIABILITIES (Notes 12, 14 and 15)
EQUITY (Note 9):
Common stock—authorized, 772,956,066 shares;
issued, 223,086,202 shares in 2013 and 2012
Capital surplus
Retained earnings
Treasury stock, at cost
17,111,088 shares in 2013 and 17,103,448 shares in 2012
(440,531)
Accumulated other comprehensive income
8,720
1,253
92,765
Net unrealized gain on available-for-sale securities
4,511
3,093
47,989
Deferred gain (loss) on derivatives under hedge accounting
Total
Minority interests
Total equity
TOTAL
4,209
284,968
(1,840)
326,595
44,776
3,031,574
232
219
2,468
285,201
326,815
3,034,053
¥1,385,440
¥1,375,197
$14,738,723
55
Consolidated Statement of Operations
Millions of yen
Thousands of
2013
2012
2013
¥487,012
¥528,401
$5,180,978
OPERATING REVENUES:
Electric
74,771
63,741
795,436
561,783
592,142
5,976,414
543,797
528,258
5,785,074
68,324
58,094
726,851
Total operating expenses
612,121
586,352
6,511,925
OPERATING (LOSS) INCOME
(50,337)
Other
Total operating revenues
OPERATING EXPENSES (Notes 11 and 17):
Electric
Other
5,789
(535,500)
9,462
9,636
100,659
(3,338)
(3,083)
OTHER EXPENSES (INCOME):
Interest expense
Interest and dividend income
Equity in loss (earning) of an affiliate
Other, net
Total other expenses
LOSS BEFORE PROVISION FOR RESERVE FOR FLUCTUATIONS
IN WATER LEVEL, INCOME TAXES AND MINORITY INTERESTS
PROVISION FOR RESERVE FOR FLUCTUATIONS IN WATER LEVEL
LOSS BEFORE INCOME TAXES AND MINORITY INTERESTS
16
(35,510)
170
(190)
521
1,285
5,542
6,663
7,648
70,882
(57,001)
2,414
(59,415)
(606,393)
(1,858)
25,680
1,817
(632,074)
(3,675)
INCOME TAXES (Note 10):
Current
1,026
10,914
(18)
Deferred
(17,568)
5,695
(186,893)
Total income taxes
(16,542)
5,676
(175,978)
NET LOSS BEFORE MINORITY INTERESTS
(42,873)
(9,352)
(456,095)
MINORITY INTERESTS IN NET INCOME OF CONSOLIDATED SUBSIDIARIES
NET LOSS
12
127
4
¥ (42,886)
¥ (9,357)
$ (456,234)
2013
2012
2013
¥(45.21)
$(2.21)
Yen
PER SHARE OF COMMON STOCK (Notes 1(q) and 18):
Basic net loss
Cash dividends applicable to the year
56
¥(208.21)
60
Consolidated Statement of Comprehensive Income
Millions of yen
2013
NET LOSS BEFORE MINORITY INTERESTS
¥(42,873)
Thousands of
2013
2012
¥(9,352)
$(456,095)
OTHER COMPREHENSIVE INCOME (Note 16):
Unrealized gain on available-for-sale securities
1,216
540
12,936
Deferred gain on derivatives under hedge accounting
6,049
2,153
64,351
Share of other comprehensive income (loss) in associates
Total other comprehensive income
COMPREHENSIVE LOSS
200
7,466
(79)
2,614
2,127
79,425
¥(35,406)
¥(6,738)
$(376,659)
¥(35,419)
¥(6,742)
$(376,797)
TOTAL COMPREHENSIVE LOSS ATTRIBUTABLE TO:
Owners of the parent
Minority interests
12
4
127
57
Consolidated Statement of Changes In Equity
Thousands
Millions of yen
Accumulated
other comprehensive
income (loss)
Outstanding
number of
shares of
common
stock
BALANCE AT APRIL 1, 2011
208,480
Common
stock
Capital
surplus
Retained
earnings
Treasury
stock
¥145,551
¥35,198
¥221,201
¥(49,422)
Net loss
Cash dividends, ¥65 per share
Purchase of treasury stock
Disposal of treasury stock
35,198
Net loss
Cash dividends, ¥30 per share
(8)
0
(9,357)
(4,319)
(4,319)
(0)
3
(12,338)
12,338
185,992
(41,400)
2
3,093
2,153
(1,840)
2,614
4
2,618
326,595
219
326,815
(42,886)
(42,886)
(6,196)
(6,196)
(6,196)
(11)
(11)
(1)
¥35,198
2
(42,886)
(11)
¥145,551
¥351,384
(13,513)
2
Net change in the year
205,975
Total equity
¥215
(13,513)
461
145,551
¥351,168
(13,513)
(4,319)
1
205,982
¥(3,993)
Minority
interests
(9,357)
BALANCE AT MARCH 31, 2013
¥2,632
Total
(9,357)
(2,498)
Retirement of treasury stock
Deferred gain
Net
(loss) on
unrealized
derivatives
gain on
available-for- under hedge
sale securities accounting
¥136,908
¥(41,410)
1
1
1,417
6,049
7,466
12
7,479
¥4,511
¥4,209
¥284,968
¥232
¥285,201
Thousands of U.S. dollars (Note 1(a))
Accumulated
other comprehensive
income (loss)
Common
stock
Capital
surplus
Retained
earnings
Treasury
stock
$1,548,414
$374,446
$1,978,638
$(440,425)
Net loss
Cash dividends, $0.31 per share
$374,446
Total equity
$ 3,474,414
$2,329
$3,476,755
(456,234)
(65,914)
(65,914)
(65,914)
(117)
(117)
(10)
$1,548,414
Minority
interests
(456,234)
21
58
$(19,574)
(117)
$32,904
Total
(456,234)
Deferred gain
Net
(loss) on
unrealized
derivatives
gain on
available-for- under hedge
sale securities accounting
$1,456,468 $(440,531)
10
10
15,074
64,351
79,425
127
79,563
$47,989
$44,776
$ 3,031,574
$2,468
$3,034,053
Consolidated Statement of Cash Flows
Millions of yen
2013
Thousands of
2013
2012
OPERATING ACTIVITIES:
Loss before income taxes and minority interests
¥(59,415)
¥ (3,675)
$(632,074)
Adjustments for:
Income taxes refund (paid)
Depreciation and amortization
Loss on disposal of property, plant and equipment
Provision for (reversal of) liability for retirement benefits
7,696
(21,274)
81,872
69,463
78,572
738,968
2,772
4,316
29,489
546
(74)
5,808
(5,157)
(4,445)
(54,861)
Decommissioning cost of nuclear power units
1,333
1,730
14,180
Increase in allowances for doubtful accounts
34
1,501
361
Provision for reserve for fluctuations in water level
2,414
1,817
25,680
Decrease in fund for reprocessing of irradiated nuclear fuel
5,781
3,607
61,500
Reversal of provision for reprocessing of irradiated nuclear fuel
Equity in loss (earning) of an affiliate
16
(190)
170
Changes in assets and liabilities:
(Increase) decrease in prepaid pension cost
Decrease (increase) in notes and accounts receivable
Decrease (increase) in inventories
(Decrease) Increase in notes and accounts payable
Other, net
Net cash provided by operating activities
(169)
803
1,696
(4,407)
(1,797)
18,042
3,565
(13,300)
37,925
(2,683)
19,004
(28,542)
(12,112)
17,619
(128,851)
15,781
81,605
167,882
(61,713)
(73,924)
(656,521)
INVESTING ACTIVITIES:
Capital expenditures including nuclear fuel
Proceeds from sales of property, plant and equipment
Increase in investment securities
Increase in investments and advances to unconsolidated subsidiaries
and affiliates
512
5,446
(0)
(21)
(0)
(5,855)
(487)
(62,287)
Proceeds from sales of investment securities
341
Other, net
471
Net cash used in investing activities
117
(66,245)
505
(1,264)
3,627
5,010
(75,074)
(704,734)
(40,000)
(425,531)
FINANCING ACTIVITIES:
Proceeds from issuance of bonds
Redemption of bonds
70,000
(40,000)
744,680
Proceeds from long-term loans
88,100
6,000
937,234
Repayments of long-term loans
(29,221)
(11,041)
(310,861)
Net (decrease) increase in short-term borrowings
(26,000)
59,000
(276,595)
(6,196)
(13,513)
(65,914)
(10)
(4,317)
(106)
Other, net
(20)
(22)
Cash dividends paid
Net cash provided by (used in) financing activities
56,651
(3,893)
(212)
602,670
NET INCREASE IN CASH AND CASH EQUIVALENTS
6,186
2,638
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
8,164
5,526
86,851
¥ 14,351
¥ 8,164
$ 152,670
CASH AND CASH EQUIVALENTS AT END OF YEAR
65,808
59
Notes to Consolidated Financial Statements
1. SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
(a) Basis of presentation of consolidated financial statements
The accompanying consolidated financial statements have been
prepared in accordance with the provisions set forth in the
Japanese Financial Instruments and Exchange Act, the Japanese
Electric Utility Law and its related accounting regulations and in
accordance with accounting principles generally accepted in
Japan (“Japanese GAAP”), which are different in certain respects
as to the application and disclosure requirements of International
Financial Reporting Standards.
In preparing these consolidated financial statements, certain
reclassifications and rearrangements have been made to the
consolidated financial statements issued domestically in order to
present them in a form which is more familiar to readers outside
Japan. In addition, certain reclassifications have been made in
the 2012 consolidated financial statements to conform to the
classifications used in 2013.
The consolidated financial statements are stated in Japanese
yen, the currency of the country in which Shikoku Electric Power
Company, Incorporated (the “Company”) is incorporated and operates. The translations of Japanese yen amounts into U.S. dollar
amounts are included solely for the convenience of readers outside
Japan and have been made at the rate of ¥94 to $1, the approximate rate of exchange at March 31, 2013. Such translations should
not be construed as representations that the Japanese yen amounts
could be converted into U.S. dollars at that or any other rate.
Amounts less than one million yen have been rounded down,
except for per share data.
As a result, the totals shown in the accompanying consolidated financial statements do not necessarily agree with the
sums of the individual amounts.
(b) C
onsolidation and investments in unconsolidated subsidiaries
and affiliates
The consolidated financial statements as of March 31, 2013,
include the accounts of the Company and its eight (eight in
2012) significant subsidiaries (collectively, the “Group”). Under
the control or influence concept, those companies in which the
Company, directly or indirectly, is able to exercise control over
operations are fully consolidated, and those companies over
which the Group has the ability to exercise significant influence
are accounted for by the equity method.
Investment in one (one in 2012) significant affiliate is accounted for by the equity method. Investments in the remaining
unconsolidated subsidiaries and affiliates are stated at cost.
If the equity method of accounting had been applied to the investments in these companies, the effect on the accompanying
consolidated financial statements would not be material.
The excess of the cost of acquisition over the fair value of the
net assets of an acquired subsidiary at the date of acquisition is
being amortized over a maximum period of 20 years.
All significant intercompany balances and transactions have
been eliminated in consolidation. All material unrealized profit
included in assets resulting from transactions within the Group is
also eliminated.
60
(c) Property, plant and equipment
Property, plant and equipment are stated at cost. Contributions
in aid of construction include contributions made by customers
and are deducted from the cost of the related assets in accordance with the regulations described in 1(a).
Depreciation of property, plant and equipment is principally
computed by the declining-balance method based on the
estimated useful lives of the assets.
Property acquired on and after April 1, 2012, is depreciated
by the declining-balance method in accordance with the revised
corporate tax law, which is effective for fiscal years beginning on
and after April 1, 2012.
The effect of this treatment was to decrease operating loss
and loss before income taxes and minority interests for the year
ended March 31, 2013, by ¥676 million ($7,191 thousand).
(d) Long-lived assets
The Group reviews its long-lived assets for impairment whenever
events or changes in circumstances indicate the carrying amount
of an asset or asset group may not be recoverable. An impairment
loss is recognized if the carrying amount of an asset or asset
group exceeds the sum of the undiscounted future cash flows
expected to result from the continued use and eventual disposition of the asset or asset group. The impairment loss would be
measured as the amount by which the carrying amount of the
asset exceeds its recoverable amount, which is the higher of the
discounted cash flows from the continued use and eventual
disposition of the asset or the net selling price at disposition.
(e) Amortization of nuclear fuel
Amortization of nuclear fuel is computed based on the quantity
of heat produced for the generation of electricity.
(f) Investment securities
All investment securities are classified and accounted for,
depending on management’s intent, as follows:
Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of applicable taxes, reported as a separate
component of equity. Nonmarketable available-for-sale securities
are stated at cost, determined by the moving-average method.
For other-than-temporary declines in fair value, investment securities are reduced to net realizable value by a charge to income.
(g) Inventories
Inventories, principally fuel for power generation, are stated at
the lower of cost, determined by the average method, or net
realizable value.
(h) Cash equivalents
Cash equivalents are deposits and short-term investments
that are readily convertible into cash and that are exposed to
insignificant risk of changes in value. They mature or become
due within three months of the date of acquisition.
(i) Liability for retirement benefits
The liability for retirement benefits is accounted for based on
projected benefit obligations and plan assets at the consolidated
balance sheet date.
(j) Reserve for reprocessing of irradiated nuclear fuel
The reserve for reprocessing of irradiated nuclear fuel is provided
at the present value amount equivalent to the cost of reprocessing irradiated nuclear fuel generated from the operations of a
nuclear reactor with and without a definite plan to reprocess.
Effective April 1, 2005, the Company adopted the revised
accounting regulation applicable to electric utility companies,
and the difference in the reserve from the accounting change was
¥60,327 million as of April 1, 2005, and is being amortized over
15 years. However, the difference in the reserve was reduced to
¥50,927 million from ¥60,327 million as of April 1, 2008, due
to the decrease in the estimated future reprocessing cost. As a
result, the unrecognized difference in the reserve at April 1,
2008, was ¥38,862 million, and is being amortized over 12
years, and the remaining balance was ¥22,669 million
($241,159 thousand) for the year ended March 31, 2013.
Additionally, under the accounting regulations applicable to
electric utility companies, the unrecognized actuarial loss of
¥2,073 million ($22,053 thousand) and gain of ¥1,895 million
at March 31, 2013 and 2012, respectively, have been amortized
starting from the next fiscal year over the period for which the
definite reprocessing plan for irradiated nuclear fuel is executed.
(k) Asset retirement obligations
In March 2008, the Accounting Standards Board of Japan (the
"ASBJ") published the accounting standard for asset retirement
obligations, ASBJ Statement No.18, “Accounting Standard for
Asset Retirement Obligations” and ASBJ Guidance No.21,
“Guidance on Accounting Standard for Asset Retirement Obligations”. Under this accounting standard, an asset retirement
obligation is defined as a legal obligation imposed either by the
law or contract that results from the acquisition, construction,
development and normal operation of a tangible fixed asset and
is associated with the retirement of such tangible fixed asset.
The asset retirement obligation is recognized as the sum of the
discounted cash flows required for the future asset retirement
and is recorded in the period in which the obligation is incurred
if a reasonable estimate can be made. If a reasonable estimate of
the asset retirement obligation cannot be made in the period the
asset retirement obligation is incurred, the liability should be
recognized when a reasonable estimate of the asset retirement
obligation can be made. Upon initial recognition of a liability for
an asset retirement obligation, an asset retirement cost is capitalized by increasing the carrying amount of the related fixed
asset by the amount of the liability. Any subsequent revisions to
the timing or the amount of the original estimate of undiscounted
cash flows are reflected as an adjustment to the carrying amount
of the liability and the capitalized amount of the related asset
retirement cost.
For nuclear power units, the Company recognizes asset retirement obligations as the sum of the discounted cash flows using
a discount rate of 2.3%. However, the Company recognizes asset
retirement obligations as the amount determined by the J apanese
Electric Utility Law and its related accounting regulations if such
amount is higher than the sum of the discounted cash flows.
The asset retirement cost of the nuclear power units is subsequently allocated to expense based on the proportion of the current generation of electric power to the estimated generation of
electric power of each unit during the estimated life of the unit.
(l) Income taxes
The provision for income taxes is computed based on the pretax
income included in the consolidated statement of operations.
The asset and liability approach is used to recognize deferred
tax assets and liabilities for the expected future tax consequences
of temporary differences between the carrying amounts and the
tax bases of assets and liabilities. Deferred taxes are measured by
applying currently enacted tax laws to the temporary differences.
(m) Leases
In March 2007, the ASBJ issued ASBJ Statement No. 13,
“Accounting Standard for Lease Transactions”, which revised the
previous accounting standard for lease transactions. The revised
accounting standard for lease transactions is effective for fiscal
years beginning on or after April 1, 2008.
Under the previous accounting standard, finance leases that
were deemed to transfer ownership of the leased property to the
lessee were capitalized. However, other finance leases were
permitted to be accounted for as operating lease transactions if
certain “as if capitalized” information was disclosed in the notes
to the lessee’s financial statements. The revised accounting
standard requires that all finance lease transactions be capitalized to recognize lease assets and lease obligations in the consolidated balance sheet. In addition, the revised accounting
standard permits leases which existed at the transition date and
which do not transfer ownership of the leased property to the
lessee to be accounted for as operating lease transactions.
The Company applied the revised accounting standard
effective April 1, 2008. In addition, the Company continues to
account for leases which existed at the transition date and which
do not transfer ownership of the leased property to the lessee as
operating lease transactions.
All other leases are accounted for as operating leases.
(n) Bond issuance costs
Bond issuance costs are charged to income as incurred.
(o) Foreign currency transactions
All short-term and long-term monetary receivables and payables
denominated in foreign currencies are translated into Japanese
yen at the exchange rates at the consolidated balance sheet date.
The foreign exchange gains and losses from translation are
recognized in the consolidated statement of operations to the
extent that they are not hedged by forward exchange contracts.
61
(p) Derivative and hedging activities
The Group uses derivative financial instruments to manage its
exposures to fluctuations in foreign exchange and interest rates.
Foreign exchange forward contracts and interest rate swaps are
utilized by the Group to reduce foreign currency exchange and
interest rate risks. The Group does not enter into derivatives for
trading or speculative purposes.
For derivatives used for hedging purposes, if the derivatives
qualify for hedge accounting because of high correlation and
effectiveness between the hedging instruments and the hedged
items, gains or losses on derivatives are deferred until maturity of
the hedged transactions.
Payables denominated in foreign currencies for which foreign
exchange forward contracts are used to hedge the foreign
currency fluctuations are translated at the contracted rate if the
forward contracts qualify for hedge accounting.
The interest rate swaps which qualify for hedge accounting
and which meet specific matching criteria are not remeasured at
market value, but the differential paid or received under the
swap agreements is recognized and included in interest expense
or income.
(q) Per share information
Basic net income (loss) per share is computed by dividing net
income (loss) available to common shareholders by the weightedaverage number of common shares outstanding for the period.
Diluted net income per share is not disclosed because dilutive
securities are not issued.
(r) Consolidated tax system
The Group applies the consolidated tax system.
(s) New accounting pronouncements
Accounting Standard for Retirement Benefits
On May 17, 2012, the ASBJ issued ASBJ Statement No.26,
“Accounting Standard for Retirement Benefits” and ASBJ Guidance No.25, “Guidance on Accounting Standard for Retirement
Benefits”, which replaced the Accounting Standard for Retirement Benefits that had been issued by the Business Accounting
Council in 1998, with an effective date of April 1, 2000, and the
other related practical guidance, and followed by partial amendments from time to time through 2009.
Major changes are as follows:
(1) Treatment in the consolidated balance sheet
Under the current requirements, actuarial gains and losses and
past service costs that are yet to be recognized in profit or loss
are not recognized in the consolidated balance sheet, and the
difference between retirement benefit obligations and plan
assets (hereinafter, “deficit or surplus”), adjusted by such unrecognized amounts, is recognized as a liability or asset.
Under the revised accounting standard, actuarial gains and
losses and past service costs that are yet to be recognized in
profit or loss shall be recognized within equity (accumulated other
comprehensive income), after adjusting for tax effects, and any
resulting deficit or surplus shall be recognized as a liability (liability for retirement benefits) or asset (asset for retirement benefits).
62
(2) Treatment in the consolidated statement of operations and
the consolidated statement of comprehensive income
The revised accounting standard does not change how to recognize actuarial gains and losses and past service costs in profit or
loss. Those amounts would be recognized in profit or loss over a
certain period no longer than the expected average remaining
working lives of the employees. However, actuarial gains and losses and past service costs that arose in the current period and have
not yet been recognized in profit or loss shall be included in other
comprehensive income and actuarial gains and losses and past
service costs that were recognized in other comprehensive income in prior periods and then recognized in profit or loss in the
current period shall be treated as reclassification adjustments.
(3) Amendments relating to the method of attributing expected
benefit to periods and relating to the discount rate and expected
future salary increases
The revised accounting standard also made certain amendments
relating to the method of attributing expected benefit to periods and
relating to the discount rate and expected future salary increases.
This accounting standard and the guidance for (1) and (2)
above are effective for the end of annual periods beginning on or
after April 1, 2013, and for (3) above are effective for the beginning of annual periods beginning on or after April 1, 2014, or for
the beginning of annual periods beginning on or after April 1,
2015, subject to certain disclosure in March 2015, both with
earlier application being permitted from the beginning of annual
periods beginning on or after April 1, 2013. However, no retrospective application of this accounting standard to consolidated
financial statements in prior periods is required.
The Company expects to apply the revised accounting standard for (1) and (2) above from the end of the annual period
beginning on April 1, 2013, and for (3) above from the beginning
of the annual period beginning on April 1, 2014, and is in the
process of measuring the effects of applying the revised accounting standard in future applicable periods.
(t) Changes in presentations
Following the resolution by the Board of Directors meeting (held
on May 25, 2012) to abolish the unfunded retirement allowances
plan for directors and Audit & Supervisory Board Members, the
shareholders meeting (held on June 27, 2012) approved the
payments to directors and Audit & Supervisory Board Members to
settle the retirement allowances plan.
As a result, the outstanding balance of retirement allowances
for directors and Audit & Supervisory Board members as of June
27, 2012, was reclassified to “Other long-term liabilities” in the
consolidated balance sheet as of March 31, 2013.
Consequently, the same reclassifications were made in the
2012 consolidated balance sheet. Such amount included in the
“Other long-term liabilities” for the year ended March 31, 2012,
was ¥1,717 million ($18,265 thousand).
2. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at carrying amount, at March 31, 2013 and 2012, were as follows:
Thousands of
U.S. dollars
Millions of yen
March 31,
2013
¥ 285,756
Hydroelectric power
March 31,
2013
2012
¥ 284,707
$ 3,039,957
Thermal power
528,760
525,309
5,625,106
Nuclear power
686,384
674,350
7,301,957
Transmission facilities
539,980
537,403
5,744,468
Transformation facilities
339,337
338,432
3,609,968
Distribution facilities
461,710
457,437
4,911,808
General facilities
110,778
111,615
1,178,489
2,952,708
2,929,258
31,411,787
227,050
220,561
2,415,425
24,968
19,759
265,617
3,204,727
3,169,579
34,092,840
Total utility plant, at cost
Other plant and equipment, at cost
Construction in progress
Total
Less contributions in aid of construction
Less accumulated depreciation
Carrying amount
(33,689)
(32,102)
(358,393)
(2,320,737)
(2,271,986)
(24,688,691)
¥ 850,300
¥ 865,491
$ 9,045,744
3. INVESTMENT SECURITIES
Information regarding each category of the securities classified as available-for-sale was as follows:
Millions of yen
Cost
Unrealized
Unrealized
Gains
Losses
Fair Value
March 31, 2013
Securities classified as:
Available-for-sale:
Equity securities
¥3,396
¥6,537
26
0
¥ 3,395
¥ 4,747
Other securities
¥(117)
¥9,815
27
March 31, 2012
Available-for-sale:
Equity securities
Other securities
27
¥ (79)
¥ 8,064
(4)
22
Thousands of
U.S. dollars
Unrealized
Unrealized
Cost
Gains
Losses
$36,127
$69,542
276
0
Fair Value
March 31, 2013
Available-for-sale:
Equity securities
Other securities
$(1,244)
$104,414
287
Carrying amounts of available-for-sale securities whose fair value is not readily determinable are disclosed in Note 13.
63
4. INVENTORIES
Inventories at March 31, 2013 and 2012, consisted of the following:
Millions of yen
March 31,
2013
Merchandise and finished products
Work-in-process
Raw materials and supplies
Total
March 31,
2012
¥ 451
Thousands of
U.S. dollars
¥ 471
2013
$ 4,797
4,019
6,471
42,755
28,242
29,009
300,446
¥32,713
¥35,952
$348,010
5. LONG-TERM DEBT
Long-term debt at March 31, 2013 and 2012, consisted of the following:
Millions of yen
March 31,
2013
0.25% to 2.26% (0.25% to 2.26% in 2012) domestic bonds,
due on various dates through 2027
0.65% to 2.95% (0.65% to 2.95% in 2012) loans from
The Development Bank of Japan, due on various dates through 2019
0.58% to 2.20% (0.63% to 2.20% in 2012) loans principally from banks and
insurance companies, due on various dates through 2027
Obligations under finance leases
Total
Less current portion
Long-term debt, less current portion
Thousands of
U.S. dollars
March 31,
2012
2013
¥349,958
¥319,954
$3,722,957
12,558
14,830
133,595
310,167
249,016
3,299,648
8,417
7,979
89,542
681,101
591,779
7,245,755
(65,513)
¥615,588
(70,246)
¥521,533
(696,946)
$6,548,808
All of the Company’s assets are subject to certain statutory preferential rights as collateral for loans from The Development Bank of
Japan for bonds and transferred bonds by debt assumption.
The aggregate annual maturities of long-term debt subsequent to March 31, 2013, were as follows:
Years ending March 31,
Thousands of
U.S. dollars
2014
¥ 65,513
2015
77,343
822,797
2016
51,253
545,244
$ 696,946
2017
49,533
526,946
2018
123,320
1,311,914
Thereafter
Total
64
Millions of yen
314,177
3,342,308
¥681,142
$7,246,191
6. EMPLOYEES’ RETIREMENT BENEFITS
The Company has a defined benefit pension plan based on the Defined Benefit Corporate Pension Act, a lump-sum retirement benefit
plan and a defined contribution pension plan. The consolidated subsidiaries have adopted some of these plans. In certain cases, the
Group pays additional retirement benefits for employees.
The liability (asset) for employees’ retirement benefits at March 31, 2013 and 2012, consisted of the following:
Millions of yen
March 31,
2013
Projected benefit obligations
Fair value of plan assets
Prepaid pension cost
Unrecognized prior service cost
Unrecognized actuarial gain (loss)
Net liability
March 31,
2013
2012
¥ 128,307
¥ 129,106
(125,815)
(122,861)
15,680
15,511
(49)
(65)
3,597
(516)
¥ 21,720
Thousands of
U.S. dollars
¥ 21,174
$ 1,364,968
(1,338,457)
166,808
(521)
38,265
$ 231,063
The components of net periodic benefit costs for the years ended March 31, 2013 and 2012, were as follows:
Millions of yen
Thousands of
U.S. dollars
Year ended
Year ended March 31,
2013
Service cost
Interest cost
Expected return on plan assets
Amortization of prior service cost
Recognized actuarial loss
Other
Net periodic benefit costs
March 31,
2013
2012
¥ 4,500
¥ 4,848
$ 47,872
2,547
2,510
27,095
(2,446)
(2,444)
(26,021)
16
16
170
290
511
3,085
1,418
1,429
15,085
¥ 6,326
¥ 6,871
$ 67,297
Assumptions used for the years ended March 31, 2013 and 2012, were set forth as follows:
Discount rate
2013
2012
2.0%
2.0%
Mainly 2.0%
Mainly 2.0%
Amortization period of prior service cost
Mainly one year
Mainly one year
Recognition period of actuarial gain / loss
Mainly one year
Mainly one year
Expected rate of return on plan assets
7. SHORT-TERM BORROWINGS
Short-term borrowings consisted of the following:
Millions of yen
March 31,
2013
Loans, principally from banks, with weighted-average interest rates of 0.81%
and 0.83% per annum at March 31, 2013 and 2012, respectively
Commercial paper with weighted-average interest rates of 0.12%
per annum at March 31, 2013 and 2012, respectively
Total
¥18,000
Thousands of
U.S. dollars
March 31,
2013
2012
¥18,000
$191,489
44,000
70,000
468,085
¥62,000
¥88,000
$659,574
65
8. ASSET RETIREMENT OBLIGATIONS
The changes in asset retirement obligations for the years ended March 31, 2013 and 2012, were as follows:
Millions of yen
Balance at beginning of year
Increase during the period
Balance at end of year
2013
2012
¥100,843
¥ 98,329
Thousands of
U.S. dollars
2013
$1,072,797
3,035
2,514
32,287
¥103,879
¥100,843
$1,105,095
9. EQUITY
Japanese companies are subject to the Companies Act of Japan
(the “Companies Act”). The significant provisions in the Companies Act that affect financial and accounting matters are summarized below:
(a) Dividends
Under the Companies Act, companies can pay dividends at any
time during the fiscal year in addition to the year-end dividend
upon resolution at the shareholders meeting. For companies that
meet certain criteria such as (1) having a Board of Directors, (2)
having independent auditors, (3) having an Audit & Supervisory
Board, and (4) the term of service of the directors is prescribed
as one year rather than two years of normal term by its articles of
incorporation, the Board of Directors may declare dividends (except for dividends-in-kind) at any time during the fiscal year, if
the company has prescribed so in its articles of incorporation.
However, the Company cannot do so because it does not meet all
the above criteria.
The Companies Act permits companies to distribute dividends-in-kind (noncash assets) to shareholders subject to a certain limitation and additional requirements.
Semiannual interim dividends may also be paid once a year
upon resolution by the Board of Directors if the articles of incorporation of the company so stipulate. The Companies Act provides certain limitations on the amounts available for dividends
or the purchase of treasury stock. The limitation is defined as the
amount available for distribution to the shareholders, but the
amount of net assets after dividends must be maintained at no
less than ¥3 million.
66
(b) Increases / decreases and transfer of common stock, reserve
and surplus
The Companies Act requires that an amount equal to 10% of
dividends must be appropriated as a legal reserve (a component
of retained earnings) or as additional paid-in capital (a component of capital surplus) depending on the equity account charged
upon the payment of such dividends until the total aggregate
amount of legal reserve and additional paid-in capital equals
25% of the amount of common stock. Under the Companies Act,
the total amount of additional paid-in capital and legal reserve
may be reversed without limitation. The Companies Act also provides that common stock, legal reserve, additional paid-in capital, other capital surplus and retained earnings can be transferred
among the accounts under certain conditions upon resolution at
the shareholders meeting.
(c) Treasury stock and treasury stock acquisition rights
The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stock by resolution of the
Board of Directors. The amount of treasury stock purchased cannot exceed the amount available for distribution to the shareholders which is determined by specific formula. Under the
Companies Act, stock acquisition rights are presented as a separate component of equity. The Companies Act also provides that
companies can purchase both treasury stock acquisition rights
and treasury stock. Such treasury stock acquisition rights are
presented as a separate component of equity or deducted directly from stock acquisition rights.
10. INCOME TAXES
The Group is subject to several taxes based on income. The aggregate normal statutory tax rates for the Company approximated 33%
and 36% for the years ended March 31, 2013 and 2012, respectively. Such rates for the consolidated subsidiaries approximated 38%
and 40% for the years ended March 31, 2013 and 2012, respectively.
The tax effects of significant temporary differences which resulted in deferred tax assets and liabilities at March 31, 2013 and 2012,
were as follows:
Millions of yen
March 31,
2013
Thousands of
U.S. dollars
March 31,
2013
2012
Deferred Tax Assets:
¥ 21,354
¥ 2,527
$ 227,170
Asset retirement obligations
12,404
11,906
131,957
11,920
11,563
126,808
Liability for retirement benefits
7,194
7,071
76,531
Intercompany profit elimination
4,644
4,971
49,404
Reserve for reprocessing of irradiated nuclear fuel
5,427
5,245
57,734
Accrued bonuses
2,022
2,971
21,510
11,333
12,666
120,563
Tax loss carryforwards
Other
Less valuation allowance
(6,613)
(6,047)
(70,351)
Total
69,689
52,876
741,372
Prepaid pension cost
(4,946)
(5,036)
(52,617)
Capitalized asset retirement costs
(2,718)
(2,260)
(28,914)
Deferred gain on derivatives under hedge accounting
(1,913)
(79)
(20,351)
Net unrealized gain on available-for-sale securities
(1,882)
(1,399)
(20,021)
Deferred Tax Liabilities:
Other
(85)
(230)
(904)
Total
(11,545)
(9,005)
(122,819)
Net Deferred Tax Assets
¥ 58,143
¥43,870
$ 618,542
A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying consolidated statements of operations for the years ended March 31, 2013 and 2012, is omitted, as net loss was recorded.
At March 31, 2013, the Company has deferred tax assets relating to tax loss carryforwards of ¥21,354 million ($ 227,170 thousand), which have the effect to reduce future income tax. These deferred tax assets relating to tax loss carryforwards, if not utilized, will
expire as follows:
Year ending March 31,
2022
Millions of yen
¥ 1,787
Thousands of
U.S. dollars
$ 19,010
2023 and thereafter
19,567
208,159
Total
21,354
227,170
67
11. RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to income were ¥5,055 million ($53,776 thousand) and ¥4,910 million for the years ended
March 31, 2013 and 2012, respectively.
12. LEASES
The Group accounted for leases which existed at the transition date and which did not transfer ownership of the leased property to the
lessee as operating lease transactions.
[Lessee]
Pro forma information of leased property under finance leases that do not transfer ownership of the leased property to the lessee on an
“as if capitalized” basis for the years ended March 31, 2013 and 2012, was as follows:
Millions of yen
2013
Thousands of
U.S. dollars
2012
2013
¥721
¥1,022
$7,670
704
974
7,489
¥ 16
¥ 47
$ 170
Other Facilities
Acquisition cost
Net leased property
Obligations under finance leases:
Millions of yen
Due within one year
Due after one year
Total
2013
2012
¥ 977
¥1,136
Thousands of
U.S. dollars
2013
$10,393
2,028
3,017
21,574
¥3,006
¥4,154
$31,978
The imputed interest expense portion which is computed using the interest method is excluded from the above obligations under
finance leases. Obligations under finance leases include sublease rentals.
Other information under finance leases for the years ended March 31, 2013 and 2012, was as follows:
Millions of yen
2013
Lease payments
Thousands of
U.S. dollars
2013
2012
¥98
¥237
$1,042
30
84
319
1
8
10
Interest expense
Depreciation expense and interest expense, which are not reflected in the accompanying consolidated statement of operations, are
computed by methods similar to the declining-balance method and the interest method, respectively.
The minimum lease payments under noncancellable operating leases subsequent to March 31, 2013 and 2012, were as follows:
Millions of yen
2013
Due within one year
Due after one year
Total
68
¥148
2012
¥181
Thousands of
U.S. dollars
2013
$1,574
112
269
1,191
¥261
¥451
$2,776
[Lessor]
Information of leased property under finance leases for the years ended March 31, 2013 and 2012, was as follows:
Other Facilities
Millions of yen
2013
Acquisition cost
¥22
$42
4
20
42
¥0
¥ 1
$ 0
Net leased property
2013
2012
¥4
Thousands of
U.S. dollars
Future lease revenue under finance leases at March 31, 2013 and 2012, was as follows:
Millions of yen
Due within one year
Due after one year
Total
2013
2012
¥1,075
¥1,174
Thousands of
U.S. dollars
2013
$11,436
2,332
3,421
24,808
¥3,408
¥4,596
$36,255
The imputed interest revenue portion which is computed using the interest method is excluded from the above future lease revenue
under finance leases. Future lease revenue under finance leases includes sublease revenue.
Other information under finance leases at March 31, 2013 and 2012, was as follows:
Millions of yen
2013
Lease revenue
¥0
¥2
$0
1
0
Interest revenue
2013
2012
Thousands of
U.S. dollars
0
0
The minimum lease revenue under noncancelable operating leases subsequent to March 31, 2013 and 2012, was as follows:
Millions of yen
2013
Due within one year
Due after one year
Total
Thousands of
U.S. dollars
2013
2012
¥18
¥20
25
36
$191
265
¥43
¥56
$457
[Sublease]
Lease investment assets and lease obligations without deducting interest expense in the accompanying consolidated balance sheet as
of March 31, 2013, under sublease transactions were as follows:
Millions of yen
Thousands of
U.S. dollars
2013
2012
2013
¥8,173
¥7,686
$86,946
Lease investment assets:
Current assets
Lease obligations:
Current liabilities
1,124
972
11,957
Noncurrent liabilities
7,048
6,713
74,978
69
13. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES
(1) Group policy for financial instruments
The Group uses financial instruments, mainly long-term debt,
including bonds and loans, based on its capital financing plan.
Short-term borrowings are used to fund ongoing operations. Cash
surpluses, if any, are invested in low-risk financial assets. Derivatives are used not for speculative purposes, but to manage exposure to financial risks as described in (2) below.
(2) N
ature and extent of financial instruments and
risk management
Investment securities, mainly equity instruments for ensuring
stable and efficient operation of the electric utility business, are
managed by monitoring market values and financial position of
issuers on a regular basis.
Under the law applicable to electric utility companies, the
fund for reprocessing of irradiated nuclear fuel is provided for the
reprocessing of spent fuel at nuclear power stations.
Accounts receivables are mostly for electricity charges and
managed individually.
The repayments of bonds and loans are primarily long-term,
and the interest rates for them are fixed. Although they are exposed to market risks from changes in interest rates, fluctuations
in interest have only a limited impact on the Group.
Payment terms of payables, such as trade notes and trade accounts, are less than one year.
Derivatives mainly include foreign exchange forward contracts
and interest rate swaps, which are used to manage exposure to
market risks from changes in foreign currency exchange rates of
payables and from changes in interest rates of bonds and loans.
The counterparties to these derivatives are limited to major international financial institutions with high credit ratings. Therefore,
the Group does not anticipate any losses arising from credit risk.
Derivative transactions are executed and controlled by the Accounting Department. Please see Note 14 for more detail about
derivatives.
(3) Fair values of financial instruments
Fair values of financial instruments are based on quoted price in active markets. If quoted price is not available, other rational valuation
techniques are used instead. Please also see Note 14 for the detail of fair value for derivatives.
Millions of yen
March 31, 2013
Investment securities
Fund for reprocessing of irradiated nuclear fuel
Carrying Amount
Fair Value
¥ 9,843
¥ 9,843
116,146
116,146
Unrealized Gain / Loss
Cash and cash equivalents
14,351
14,351
Notes and accounts receivable
59,411
59,411
Total
¥199,752
¥199,752
Bonds
¥349,958
¥363,819
¥13,860
322,725
333,505
10,780
62,000
62,000
Long-term loans
Short-term borrowings
Notes and accounts payable
Total
48,244
48,244
¥782,928
¥807,568
¥24,640
Millions of yen
March 31, 2012
Fair Value
¥ 8,086
¥ 8,086
121,928
121,928
8,164
8,164
61,107
61,107
Total
¥199,286
¥199,286
Bonds
¥319,954
¥328,013
¥ 8,058
263,846
273,544
9,697
88,000
88,000
Long-term loans
Total
70
Carrying Amount
50,927
50,927
¥722,728
¥740,485
¥17,756
Thousands of
U.S. dollars
March 31, 2013
Carrying Amount
$ 104,712
$ 104,712
1,235,595
1,235,595
Fair Value
152,670
152,670
632,031
632,031
Total
$2,125,021
$2,125,021
Bonds
$3,722,957
$3,870,414
$147,446
3,433,244
3,547,925
114,680
659,574
659,574
Long-term loans
513,234
513,234
$8,329,021
$8,591,148
Total
$262,127
Notes: 1.Bonds and long-term loans in the above table include the current portion of such instruments.
2.At March 31, 2013 and 2012, investment securities whose fair values cannot be reliably determined were ¥34,353 million ($365,457 thousand) and ¥34,382 million, respectively, and their carrying
amounts were not included in the above table.
The fair values of investment securities are measured at the
quoted market price of the stock exchange for the equity instruments. The information of the fair value of investment securities
by classification is included in Note 3.
Financial instruments whose fair value cannot be reliably determined are not reflected above.
Contributions to the fund for reprocessing of irradiated nuclear
fuel are made in accordance with the Spent Nuclear Fuel Reprocessing Fund Act for the purpose of appropriate reprocessing of
irradiated nuclear fuel, which is associated with the operation of
a nuclear reactor.
The Company is required to follow the plan on funding as determined by the Minister of Economy, Trade and Industry. As the
carrying amount of this plan is based on equivalent amount to the
present value, the fair value is equal to the carrying amount.
The carrying values of cash and cash equivalents approximate
fair value because of their short maturities.
Bonds
The fair values of bonds are measured at the quoted market price.
Long-term loans
The fair value of long-term loans is determined by discounting
the cash flows related to the debt at the Group’s assumed corporate borrowing rate.
Short-term borrowings, notes and accounts receivable and payable
The carrying values of short-term borrowings, notes and accounts
receivable and payable approximate fair value because of their
short maturities.
Derivatives
The information of the fair value of derivatives is included in
Note 14.
(4) Maturity analysis for financial assets and securities with contractual maturities
Millions of yen
Due in One Year
March 31, 2013
Total
Thousands of
U.S. dollars
Due in One Year
or Less
or Less
¥14,351
$152,670
59,411
632,031
¥73,762
$784,702
The estimated refund from the fund for reprocessing of irradiated nuclear fuel will be ¥10,669 million ($113,500 thousand) in the next
fiscal year.
Please see Note 5 for annual maturities of long-term debt.
71
14. DERIVATIVES
The Company uses derivative financial instruments (“derivatives”), including foreign exchange forward contracts and currency swaps, to
hedge foreign exchange risk associated with certain assets and liabilities denominated in foreign currencies. The Company also enters
into interest rate swap contracts as a means of managing its interest rate exposure on certain liabilities. The Company does not hold or
issue derivatives for trading or speculation purposes.
The counterparties to these derivatives are limited to major international financial institutions with high credit ratings. Therefore, the
Company does not anticipate any losses arising from credit risk.
Derivative transactions to which hedge accounting is not applied at March 31, 2013, were none.
Derivative transactions to which hedge accounting is applied at March 31, 2013, were as follows:
Millions of yen
Contract Amount due
March 31, 2013
Hedged Item
Contract Amount
after One Year
Fair Value
¥49,404
¥43,921
¥6,136
¥43,921
¥6,136
Foreign exchange forward contracts:
Buying U.S.$
Buying U.K.£
Payables and Forecasted
transactions
Total
93
¥49,497
0
Interest rate swaps:
Pay fixed / Receive floating
Receive fixed / Pay floating
Long-term debt
Total
¥12,000
¥ (20)
11,000
¥ 5,000
(*)
¥23,000
¥ 5,000
¥ (20)
Thousands of
U.S. Dollars
Contract Amount due
March 31, 2013
Hedged Item
Contract Amount
after One Year
Fair Value
$525,574
$467,244
$65,276
$467,244
$65,276
Buying U.S.$
Buying U.K.£
transactions
Total
989
$526,563
0
Total
Long-term debt
$127,659
$ (212)
117,021
$ 53,191
(*)
$244,680
$ 53,191
$ (212)
(*) The fair value of interest rate swaps is included in that of the hedged items because the interest rate swaps are combined with the hedged item if they qualify for hedge accounting and meet specific matching criteria.
Note: The fair value of derivative transactions is measured at the quoted price obtained from the financial institution.
72
Derivative transactions to which hedge accounting is not applied at March 31, 2012, were as follows:
Millions of yen
Contract Amount
March 31, 2012
Contract Amount
due after One Year
Fair Value
Unrealized Gain/Loss
¥20,000
20,000
Total
¥ 122
(104)
¥40,000
¥ 17
¥ 122
(104)
¥ 17
Derivative transactions to which hedge accounting is applied at March 31, 2012, were as follows:
Millions of yen
Contract Amount due
March 31, 2012
Hedged Item
Contract Amount
after One Year
Fair Value
Buying U.S.$
Buying U.K.£
transactions
Total
¥55,699
¥49,376
¥(2,586)
¥55,716
¥49,376
¥(2,586)
¥17,000
¥12,000
¥ (110)
6,000
6,000
(*)
¥23,000
¥18,000
¥ (110)
16
(0)
Long-term debt
Total
(*) The fair value of interest rate swaps is included in that of the hedged items because the interest rate swaps are combined with the hedged item if they qualify for hedge accounting and meet specific matching criteria.
15. CONTINGENT LIABILITIES
At March 31, 2013, total contingent liabilities were as follows:
Millions of yen
Thousands of
U.S. dollars
Co-guarantees of loans of other companies:
¥ 50,459
$ 536,797
Al Suwadi Power Company S.A.O.C
2,713
28,861
Al Batinah Power Company S.A.O.C
2,606
27,723
Tosa Power Co., Inc.
1,442
15,340
Ras Girtas Power Company Q. S. C.
733
7,797
Other
240
2,553
19,260
204,893
Japan Nuclear Fuel Limited
Guarantees of employees’ housing loans
Guarantees under debt assumption agreements
Total
110,000
1,170,212
¥187,455
$1,994,202
73
16. COMPREHENSIVE INCOME
The components of other comprehensive income for the years ended March 31, 2013 and 2012, were as follows:
Millions of yen
2013
Thousands of
U.S. dollars
2013
2012
Unrealized gain on available-for-sale securities:
Gains arising during the year
¥ 1,756
¥ 449
Reclassification adjustments to profit or loss
Amount before income tax effect
Income tax effect
Total
$ 18,680
9
1,756
(539)
459
81
18,680
(5,734)
¥ 1,216
¥ 540
$ 12,936
¥ 8,535
¥2,992
$ 90,797
328
644
3,489
Deferred gain on derivatives under hedge accounting:
Adjustments for amounts transferred to
the initial carrying amounts of hedged items
Amount before income tax effect
Income tax effect
Total
(58)
8,805
(2,755)
(86)
3,550
(1,397)
(617)
93,670
(29,308)
¥ 6,049
¥2,153
$ 64,351
¥ 110
¥ (88)
$ 1,170
Share of other comprehensive income in associates:
90
8
957
Total
¥ 200
¥ (79)
$ 2,127
Total other comprehensive income
¥ 7,466
¥2,614
$ 79,425
17. RELATED-PARTY TRANSACTIONS
Significant transactions of the Company with directors and Audit & Supervisory Board Member, unconsolidated subsidiaries and an
affiliated company for the years ended March 31, 2013 and 2012, were as follows:
Yondenko Corporation
(The Company owns 32.4% of the common stock of Yondenko Corporation at March 31, 2013)
Millions of yen
2013
2012
Thousands of
U.S. dollars
2013
Transactions:
Construction
¥18,421
¥17,355
$195,968
Maintenance
14,537
17,661
154,648
¥ 3,957
¥ 4,103
$ 42,095
Balances:
Other current liabilities
74
18. PER SHARE INFORMATION
Basic net loss per share (“EPS”) for the years ended March 31, 2013 and 2012, was as follows:
Millions of yen
Net Loss Available to
For the year ended:
Common Shareholders
Thousands of Shares
Yen
U.S. dollars
Weighted Average
Shares
EPS
March 31, 2013
¥(42,886)
205,979
¥(208.21)
March 31, 2012
¥ (9,357)
206,959
¥ (45.21)
$(2.21)
19. SEGMENT INFORMATION
Under ASBJ Statement No.17, “Accounting Standard for Segment Information Disclosures” and ASBJ Guidance No.20,
“Guidance on Accounting Standard for Segment Information
Disclosures”, an entity is required to report financial and descriptive information about its reportable segments. Reportable segments are operating segments or aggregations of operating
segments that meet specified criteria. Operating segments are
components of an entity about which separate financial information is available and such information is evaluated regularly by
the chief operating decision maker in deciding how to allocate
resources and in assessing performance. Generally, segment information is required to be reported on the same basis as is used
internally for evaluating operating segment performance and deciding how to allocate resources to operating segments.
1. Description of reportable segments
The Group’s reportable segments are those for which separate financial information is available and regular evaluation by the Company’s
management is being performed in order to decide how resources are allocated among the Group.
The only reportable segment is the electricity utility industry because the Group is principally engaged in this business.
2. Methods of measurement for the amounts of sales, profit (loss), assets and other items for each reportable segment
The accounting policies of each reportable segment are consistent to those disclosed in Note 1, “Significant accounting and reporting policies”. Reportable segment profit is based on operating income. Also, intersegment sales or transfers are computed based on market price.
3. Information about sales, profit (loss), assets and other items of the Group for the years ended March 31, 2013 and 2012, was as follows:
Millions of yen
Reportable Segment
Electric Utility
Other
Adjustments
Consolidated
2013
Sales
Sales to external customers
Intersegment sales or transfers
Total
¥ 487,012
¥ 74,771
1,183
78,031
¥(79,214)
152,802
(79,214)
488,195
¥ 561,783
¥50
561,783
Segment profit (loss)
¥ (59,193)
¥ 8,804
¥ (50,337)
Segment assets
¥1,307,206
¥168,573
¥(90,339)
¥1,385,440
60,454
10,512
(1,503)
69,463
Increase in property, plant and equipment
and intangible assets
53,151
12,276
(1,485)
63,941
Other:
75
Millions of yen
Reportable Segment
Electric Utility
Other
Adjustments
Consolidated
2012
Sales
¥ 528,401
¥ 63,741
1,131
86,155
Total
529,532
¥ 592,142
¥(87,287)
149,896
(87,287)
592,142
¥
Segment assets
¥1,301,281
¥165,132
¥(91,216)
¥1,375,197
68,961
11,109
(1,498)
78,572
68,589
7,192
(1,673)
74,109
(2,343)
¥
8,338
¥
(204)
¥
5,789
Other:
Notes:1. “Other” consisted of electrical and mechanical engineering, production and sales of electric appliances, information and communication service and others.
2. Amounts of adjustment were as follows:
•The amount of adjustment of segment profit of ¥(204) million, which represents transactions made between segments, is eliminated.
Segment profit, after this adjustment, is consistent with the operating income.
•The amount of adjustment of segment assets of ¥(91,216) million, which represents transactions made between segments, is eliminated.
•The amount of adjustment of depreciation and amortization of ¥(1,498) million, which represents transactions made between segments, is eliminated.
•The amount of adjustment of increase in property, plant and equipment and intangible assets of ¥(1,673) million, which represents transactions made between segments, is eliminated.
Thousands of
U.S. dollars
Reportable Segment
Electric Utility
Other
Adjustments
Consolidated
2013
Sales
$ 5,180,978
$ 795,436
12,585
830,117
5,193,563
Total
(629,712)
1,625,553
$
93,659
$ 5,976,414
$(842,702)
(842,702)
$
531
5,976,414
$
$ (535,500)
Segment assets
$13,906,446
$1,793,329
$(961,053)
$14,738,723
643,127
111,829
(15,989)
738,968
565,436
130,595
(15,797)
680,223
Other:
Notes:1. “Other” consisted of electrical and mechanical engineering, production and sales of electric appliances, information and communication service and others.
2. Amounts of adjustment were as follows:
•The amount of adjustment of segment loss of ¥50 million ($531 thousand), which represents transactions made between segments, is eliminated.
Segment loss, after this adjustment, is consistent with the operating loss.
The amount of adjustment of segment assets of ¥(90,339) million ($(961,053) thousand), which represents transactions made between segments, is eliminated.
•The amount of adjustment of depreciation of ¥(1,503) million ($(15,989) thousand), which represents transactions made between segments, is eliminated.
•The amount of adjustment of increase in property, plant and equipment and intangible assets of ¥(1,485) million ($(15,797) thousand), which represents transactions made
between segments, is eliminated.
76
Independent Auditor’s Report
77
Corporate Information
Organization
Corporate Planning Dept.
Business Planning Dept.
Environmental Affairs Dept.
Thermal Power Division
Thermal Power Dept.
Fuels Dept.
Anan Thermal Power Office
Thermal Power Stations (Anan, Tachibana-wan)
Thermal Power Stations (Saijo, Sakaide)
Nuclear Power Dept.
Nuclear Fuel Dept.
Nuclear Research & Training Center
General Meeting of Stockholders
System Operation & Transmission Division
Power System Operation Dept.
Audit & Supervisory Board
Member
Transmission & Substation Dept.
Hydropower Dept.
Members’ Office
Customer Service Division
Industrial and Commercial Customer Service Dept.
Board of Directors
Chairman of the Board
Board of
Managing
Directors
Residential Customer Service Dept.
Distribution Dept.
Tokyo Branch Office
and Director
Managing Director
Meeting of Managing Staff
Secretary Dept.
Branch Offices
Public Relations Dept.
General Affairs Dept.
General Affairs Dept.
Sales & Customer Services Dept.
Plant & Facilities Sitting Dept.
Electrical Engineering Dept.
Sales & Customer Services Offices
Internal Audit Dept.
Internal Nuclear Quality Assurance Audit Dept.
Accounting & Finance Dept.
Purchasing & Materials Dept.
Employee Relations & Human Resources Dept.
General Education & Training Center
General Medical Services Center
Information Systems & Telecommunications Dept.
Civil & Architectural Engineering Dept.
78
Subsidiaries and Affiliated Companies
Company Name
Electric Utility
IT / Communication
Year of
Foundation
TOSA POWER Inc.
2003
Electricity supply business
STNet, Incorporated*
1984
Telecommunication services (FTTH, etc.) and information
system services
Cable Media Shikoku Company, Incorporated
1995
Cable TV broadcasting and telecommunication businesses
Cable Television Tokushima, Incorporated
1987
Cable TV broadcasting and telecommunication businesses
SHIKOKU INSTRUMENTATION CO., LTD.*
1951
Manufacture and sales of automatic gauging control,
information transmission system, etc.
Techno-Success Company, Incorporated
1990
Manufacture and sales of transmission and distribution
equipment
SHIHEN TECHNICAL CORPORATION
1946
Manufacture and sales of transformer and other
electric equipment
Eco-Tech Company, Incorporated
1992
Development, manufacture, and sales of materials
for environment preservation
Yonden Engineering Company, Incorporated*
1970
Study, designing, engineering, and maintenance of
electricity-related facilities
Yonden Consultants Company, Incorporated*
1982
Planning and designing of civil works and construction, and
supervision of engineering works
YONDENKO CORPORATION*
1963
Engineering works for power supply facilities
Shikoku Research Institute, Incorporated*
1987
Research and development on technologies related to
electric utility business and other
Yonden Business Company, Incorporated*
1961
Real estate, planning and production of advertisements, and
office-related services
Yonden Energy Service Company, Limited*
1971
Sales and engineering of electric hot water heaters and
air-conditioning systems
Yonden Life Care Company, Incorporated
2002
Operation of charged nursing facilities for the aged
SHIKOKU AIR SERVICE CO., LTD.
1956
General aviation using aircraft and tourist agency
Ikata Service Company, Incorporated
1995
Local community development and management services of
Yonden Media Works Company, Incorporated
2001
Video production and other related services
Sakaide LNG Company, Incorporated*
2004
Construction and operation of LNG fuel bases;
storage and delivery of LNG
Tachibana Thermal Power Port Service
Company, Limited
1998
Harbor unloading of coals imported from overseas to use at
Tachibana-wan Thermal Power Station
MISAKI WIND POWER Co., Ltd.
2004
Wind power generation business
Okawara Windfarm Corporation
2006
Ei Wind Power Company, Incorporated
2006
Utazu Kyushoku Service Co., Ltd.
2006
General maintenance, servicing and management of school
catering facility
Tokushimaichiko PFI Service Co., Ltd.
2007
Facilities and maintenance of Tokushima Municipal
High School
SEP International Netherlands B.V.
2011
Investment and financing for overseas projects
(a subsidiary company for international investments)
Manufacturing
Construction
Research and
Development
Real Estate,
Energy,
Services, and Others
Principal Business
* Covered by consolidated financial statements (YONDENKO CORPORATION is accounted for by the equity method)
79
Corporate History
1951
1963
1965
May
Jul.
Nov.
1968
1971
Jul.
Jul.
1972
Aug.
Peak load exceeded 2,000 MW and annual electricity sales in the fiscal year ended March 31, 1973, exceeded
10 billion kWh
1973
Apr.
Oct.
Aug.
Sep.
Sakaide Thermal Power Station Unit No. 3 (450 MW) commenced operations
First Oil Shock energy crisis occurred
Peak load exceeded 3,000 MW
Our first nuclear power station, Ikata Nuclear Power Station Unit No. 1 (566 MW), commenced operations
Second Oil Shock energy crisis occurred
Ikata Nuclear Power Station Unit No. 2 (566 MW) commenced operations
Hongawa Pumped-Storage Power Station Unit No. 1 (300 MW) commenced operations
Started to visit and hold explanatory meetings at the 20,000 homes that fell within 10 km of Ikata Nuclear Power Station
(and has been continued every fall since)
1977
1979
1982
Shikoku Electric Power Company, Incorporated, established (start of Japan’s current 10 electric utility structure)
Our first thermal power station, Anan Thermal Power Station Unit No. 1 (125 MW), commenced operations
Saijo Thermal Power Station No. 1 (156 MW) commenced operations
(thermal power stations surpassed hydropower stations in terms of approved maximum output in the fiscal year ended
March 31, 1966 (thermal power became primary and hydropower secondary))
Sakaide Thermal Power Station Unit No. 1 (195 MW), incorporating Japan’s first combined-cycle power generation systems
(gas turbine and steam turbine), commenced operations
1988
Mar.
Jun.
Oct.
1990
Jul.
Peak load exceeded 4,000 MW and annual electricity sales in the fiscal year ended March 31, 1991, exceeded
20 billion kWh
1994
Jul.
Dec.
Dec.
Mar.
Jun.
Jan.
Mar.
Mar.
Oct.
Ikata Nuclear Power Station Unit No. 3 (890 MW) commenced operations and total output reached 2,022 MW
Ikata Nuclear Power Station adopted the “Ikata System” of prompt, highly transparent disclosure of information
Deregulation of electricity retail market for extra-high-voltage power
Tachibana-wan Thermal Power Station (700 MW) commenced operations
Started to purchase and cancel treasury stock (began cancelling treasury stock in October)
Customer Information Center commenced operations
2010 Yonden Group Vision announced
STNet, Incorporated, started Pikara Optical Cable Internet Services, an optical telecommunication service
for individual households
Apr.
Jul.
Aug.
Mar.
Deregulation of electricity retail market for high-voltage power occurred
Participated in the first overseas IPP business, Ras Laffan C Power and Water Project in Qatar
First LNG terminal completed; introduced LNG to the Sakaide Thermal Power Station Unit No. 4 (350 MW) and
commenced operations
1999
2000
2001
2004
2005
2008
2010
2011
2012
2013
Aug.
Dec.
Feb.
Mar.
Jan.
Feb.
Feb.
Pluthermal power generation started at the Ikata Nuclear Power Station Unit No. 3
Introduced LNG to the Sakaide Thermal Power Station Unit No. 1 (296 MW) and commenced operations
Matsuyama Solar Power Station expansion plan phase I (2.042 MW) completed
New Yonden Group Vision announced
Great East Japan Earthquake and an accident at a nuclear power plant in Fukushima Prefecture occurred
Operation of all units of Ikata Nuclear Power Plant halted
Peak winter-time load exceeded 5,220 MW
Applied for approval to raise electricity rates
Trends in Electricity Sold and Peak Load
Billion kWh
Million kW
30
9
20
6
10
3
01951
1960
Electricity sold ■ Peak load (right scale)
80
1970
1980
1990
2000
2010 2012 0
FY
Corporate Data and Stock Information
Corporate Data
Share Ownership Distribution (by Region)
Corporate Name
Shikoku Electric Power Company,
Incorporated
URL
http://www.yonden.co.jp/english/
Head Office
2-5, Marunouchi, Takamatsu,
Kagawa 760-8573, Japan
Date of Establishment
May 1, 1951
Paid-in Capital
¥145,551,921,500
Hokkaido
395
(0.4%)
Tohoku
648
(0.7%)
Kinki
15,400
(16.1%)
Kyushu*
1,966
(2.1%)
Stock Information
Total Number of Shares
Authorized to be Issued
772,956,066
Total Number of Shares Issued
223,086,202
Number of Shareholders
95,695
Stock Exchange Listing
The Tokyo Stock Exchange
Share Transfer Agency
Department
Sumitomo Mitsui Trust Bank, Limited
1-4-1, Marunouchi, Chiyoda-ku,
Tokyo 100-8233, Japan
Independent Auditors
Deloitte Touche Tohmatsu
Business Year
From April 1 to March 31 of the next year
General Meeting of Shareholders
June every year
Chugoku
3,257
(3.4%)
Kanto
18,093
(18.9%)
Shikoku
47,345
(49.5%)
* Including Okinawa Prefecture
Chubu /
Hokuriku
8,270
(8.6%)
Overseas
321
(0.3%)
Principal Shareholders (Top 10)
Share Ownership Distribution (by Investor Profile)
Number of
Shareholding
Shares
(%)
(Thousands)
Name
Nippon Life Insurance Company
9,254
4.1%
The Iyo Bank, Ltd.
8,851
4.0%
The Hyakujushi Bank, Ltd.
8,846
4.0%
SUMITOMO JOINT ELECTRIC POWER CO., LTD.
7,062
3.2%
Kochi Prefecture
6,230
2.8%
The Master Trust Bank of Japan, Ltd. (Trust account)
5,015
2.2%
Shikoku Electric Power Employee Stock Ownership
4,899
2.2%
Japan Trustee Services Bank, Ltd. (Trust account)
4,568
2.0%
Meiji Yasuda Life Insurance Company
4,001
1.8%
The Shikoku Bank, Ltd.
2,749
1.2%
(Thousands)
Government
Local
Organizations, etc.
6,278
(2.8%)
Financial
Institutions
70,368
(31.6%)
Treasury Stock
15,483
(6.9%)
223,086
Individuals
and Others
88,608
(39.7%)
thousands
of shares
Securities
Companies
1,195
(0.5%)
Other
Corporations
19,103
(8.6%)
Foreigners
22,051
(9.9%)
Monthly Share Price and Trading Volume
Yen
Millions of shares
5,000
50
4,000
40
3,000
30
2,000
20
1,000
10
0
0
2007
2008
2009
Share price (as of the end of the month) Trading volume (right scale)
2010
2011
2012
FY
FY
81
Tel +81-87-821-5061
URL http://www.yonden.co.jp/
2013
Yonden Group Annual Report
Business and CSR Activities
This report was printed on FSC®-certified paper using vegetable oil ink and a waterless printing process.
Printed in Japan

Annual Report 2013

Transcription

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