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Value Creation Initiatives Our group is promoting management aimed at sustained corporate value creation as the most trusted partner for customers in the Shikoku region. In business management, we have set response policies and measures while maximizing opportunities and minimizing risks in light of changes in the business climate and social issues. P.22 1. Groundwork aimed at Opportunities and Risks Based on Changes in the Business Climate improving future and Social Issues profitability in electric Changes in business climate Opportunities Risks power business and social issues Expansion of our market areas and Full liberalization of the retail • increased opportunities for profit electricity market (1) Maintaining and Diversification of sales methods ◆ Decreasing electricity sales Creation of new electric power • and channels markets expanding electricity •Generation of new needs Creation of new services and sales and profitability Declining population, dwindling • businesses ◆ Decreasing electricity sales birthrate and aging society •Promotion of electrification P.27 (2) Optimization of Further improvement of nuclear ◆ Increasing safety measure Stronger nuclear safety regulations • supply facilities, power safety at Ikata Power Station investments and costs Systematic upgrading of aging ◆ Increasing investment for Response measures for aged • facilities upgrading and costs for intensive reduction facilities and natural disasters of fixed costs •Further increasing resilience maintenance of aging facilities •Further increased introduction of renewable energy ◆ Increasing investment and Further improvement of the P.37 Responses to global warming • costs in response to stronger 2. Development and efficiency of supply facilities environmental regulations •Promotion of electrification and implementation of progress of energy saving businesses that will be Diversification of power supply and ◆ Increasing fuel procurement Ensuring stable stability • future profit sources fuel procurement costs •Increased needs for new services and businesses, expansion of Technological innovation, evolution ◆ Obsolescence of existing collaboration and alliances with of new technologies business other companies •Changing form of energy supply 21 Shikoku Electric Power Group INTEGRATED REPORT 2020 Shikoku Electric Power Group Foundation Underpinning Value Creation Top Message Value Creation Initiatives Value Creation Financial / Corporate Information Groundwork aimed at improving future profitability in electric power business (1) Maintaining and expanding electricity sales and profitability Opportunities and Risks Opportunities Risks • Expansion of our market areas and increased opportunities for profit in electricity sales ◆ Decrease in electricity sales due • Diversification of sales methods and to intensifying competition and channels based on combined sales and population decline alliances with other companies • Increase in new customer needs Response policy and measures See pages 23–26 We are strengthening retail sales in the Shikoku region, promoting the expansion of retail and wholesale sales outside of the region and working on the maintenance and expansion of electricity sales. Strengthening of retail sales Increasing opportunities for profit Approaches to individual and residential costomers Expansion of retail sales and wholesale outside • We will establish diverse rate plans and discount systems the Shikoku region adapted to customer lifestyles and needs, enhance our • In the Tokyo metropolitan and Kansai areas, we will services and aim for the further improvement of customer develop new customers by proposing optimal price satisfaction. plans based on customer usage. • We will focus on proposals for electrification when houses • We will increase wholesaling while using the spot market are newly built or renovated, and work on the spread of and baseload market. all-electric houses and the expansion of electricity • We are maximizing profit by maintaining and increasing demand. electricity sales combining wholesaling and retail sales. • We will form alliances with companies with powerful customer bases in the Shikoku region and build stable relationships with customers. Sales activities for business customers • We will appoint specialist personnel and promote the deepening of relationships with existing customers and the acquisition of new customers. • We will develop commercial and industrial electricity demand, leverage the collective strength of our Group to develop solution services that contribute to the improvement of energy efficiency and productivity and strengthen relationships with customers. Key Performance Indicators (KPIs) Number of all-electric house contracts Number of Yonden Concierge members (10 thousand houses) (10 thousand) 38.7 40.2 46.5 38.5 2019 2020 (FY) 2019 2020 (FY) (Result) (Target) (Result) (Target) Shikoku Electric Power Group INTEGRATED REPORT 2020 22 Value Creation Initiatives Maintaining and expanding electricity sales and profitability Strengthening of retail sales Approaches to individual and residential customers Setting of diverse rate plans Enhancement of customer services We have set diverse rate plans for residential customers We listen to customers’ opinions to understand their that enables them to feel good value based on their state needs and requests and develop new rate plans and of use of electricity and lifestyles. enhance services. By doing so, we aim for the further In addition, we have also set a discount menu including improvement of customer satisfaction while continuing to the Arigato Discount for customers who have contracted be the most familiar company. with us for a long time and the Family e-Discount for customers who make consolidated payments for multiple Enhancement of Yonden Concierge locations with electricity services. The free members-only web service called Yonden Concierge grants points to members linked to electricity Major rate plans for residential customers rate payment amounts. Apart from specialty goods of • We provide economical rate plans based on customers’ actual Shikoku, Yonden Concierge also provides a service that electricity usage enables members to convert the points granted to points Customers Living in for other loyalty programs run by local supermarkets, All-Electric Houses telecommunications providers, airlines and others. Denka e-Plan In addition, Yonden Concierge also provides a Rate Alert Denka discount of 10% Denka e-Apartment Plan off electricity rates for Customers that can shift Email Service that allows users to receive an email notification customers with both an electricity use to nighttime or if they reach a certain electricity rate threshold set in induction heating (IH) holidays cooktop and electric advance and an Anshin Support Service that notifies family water heater members by email if certain fluctuations in other family members’ electricity usage are not observed. The number of members as of the end of fiscal 2019 has risen to 380,000.* * The number of households in the Shikoku region is approx. 1.6 million Otoku e-Plan Customers Not Living in Customers that use relatively Image of Yonden Points All-Electric Houses large amounts of electricity at all times of the day 1 Yonden Point = 1 yen One Yonden Point is accumulated for every ¥200 paid Re-energy Premium Plan Accumulate points with each payment!! Customers with Strong Customers that use 100% of Points Interest in Eco Electricity their electricity from renewable energy How points accumulate apart from those linked to rates • Introduction of discount rate plans Read to Look to accumulate! Play to Family e-Discount accumulate! Notifications of accumulate! Arigato Discount Articles and recipes electricity usage Play games Discount applied to monthly Discount applied to rate upon consolidated electricity rate once a year Yonden Points can be converted to points for other loyalty programs, payment for multiple for customers who continue exchanged for Shikoku specialty goods or gift certificates, locations with electricity to contract with us or used to enter lotteries for luxury prizes or make donations services Exchange for item of choice Electric Floor Heating Discount Discount applied for six months from November each year to Point-exchange companies April of the following year for customers who have joined the Total of 28 companies including supermarkets, public transportation Denka e-Plan and installed electric floor heating (railways, airlines) and telecommunications providers, etc. 23 Shikoku Electric Power Group INTEGRATED REPORT 2020 Shikoku Electric Power Group Foundation Underpinning Value Creation Top Message Value Creation Initiatives Value Creation Financial / Corporate Information Enhancement of combined discount plans We have enhanced our discount plans that combine Promoting spread of all-electric houses electricity with the lifestyle-related services provided by our Group companies for customers of rate plans designated We are strengthening collaboration with sub-users by us. including homebuilders in various regions to make proposals for all-electric houses in new construction or Discount plan combined with lifestyle-related services renovated houses. • Customers who conclude a new lease In addition, we are holding campaigns for all-electric Electricity and agreement for an EcoCute or other electric houses regularly across all of Shikoku to provide EcoCute, etc. water heater supplied by Yonden Energy (launched in April 2019) Service Co,. Ltd. and enter the Denka
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