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Integrated Report 2020

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Integrated Report 2020 Tohoku Electric Power Group INTEGRATED REPORT 2020 Introduction Foreword Top Management Top Message from from Message On publication of the Tohoku Electric Power Group Integrated Report 2020 About Tohoku Electric I would like to thank all our stakeholders for their uncertainties. Based on this keen sense of urgency, we have Power Group continuing support of the Tohoku Electric Power Group. formulated a new Tohoku Electric Power Group Medium-/ Despite the impact of lower (retail) sales of electric power Long-Term Vision targeting the decade of the 2030s. This and other factors, FY2019 financial results show growth in Vision will serve as a management guidepost for the coming profits. Contributing factors included improved fuel prices decade and beyond and ensure that the Group can resulting from bringing Unit 3 online at the Noshiro continue to grow alongside our communities. Thermal Power Station and groupwide efforts to improve The following words express the ideal form for the Group Vision Our productivity and efficiency still further, as well as a major in the 2030s, as identified in this new Medium-/Long- increase in profits due to the time-lag effects of the Term Vision: a group of companies growing in step with fuel-price adjustment system. sustained societal progress by helping to establish a Since our founding in 1951, the entire Group has worked as smart society for a new age, starting in Tohoku. Through one to achieve both community development and business business activities based on a transformed business Strategies growth, drawing on an organization integrating power model, we will seek to realize both sustained societal Representative Director & Representative Director generation, transmission and distribution, and sales. We progress and the growth of the Tohoku Electric Power Chairman of the Board & President have never lost sight of our mission: to benefit the public by Group, thereby helping to build a smart society while providing electricity to customers in the six prefectures of the fulfilling our role as a source of electricity, chiefly in the six Creation Value Corporate Foundations to Support Progress on Business Business on Progress Tohoku region and Niigata Prefecture. Nor have we lost sight prefectures of the Tohoku region and Niigata Prefecture. of our strong sense of community. We see the five-year period from FY2020 through FY2024 Various current factors have brought the business as a time of transformation of our business model. During environment in which the Tohoku Electric Power Group this period, we will advance business development based operates to a significant turning point. These factors include on three focal points: change, challenges, and creation. transformations in the structure of electricity demand and This Report seeks to convey information on these growth supply accompanying the adoption of renewable energy strategies and our various initiatives in a clear and easy to Information Financial Financial Tohoku Electric Power Group Power Electric Tohoku and the continuing transformations associated with digital understand manner. technology, as well as growing competition on the heels of Lastly, with no end in sight to the COVID-19 pandemic, we full liberalization of retail electricity sales and the migration of expect various associated challenges to continue to affect the our power transmission and distribution section to an Group’s business environment. Nevertheless, Tohoku Electric in-house company organization this past April. In such times Power and the Tohoku Electric Power Network remains Information Corporate Corporate of dramatic change, unless the Tohoku Electric Power committed to providing a stable source of electricity in our role Group pursues autonomous reforms and seeks out as a designated public utility. We appreciate your continuing challenges proactively, rather than simply drifting on the path understanding and support for our business activities. we have trod to date, the future can hold major risks and September 2020 01 Introduction The Tohoku Electric Power Group’s Management Philosophy and Group Slogan Top Management Top Message from from Message Tohoku Electric Power was founded in 1951. Amid the postwar recovery, our first The Tohoku Electric Power Group’s Management Philosophy About Tohoku Electric President, Ungoro Uchigasaki, established the management philosophy which called for Power Group “Rebuilding Japan starting in Tohoku and developing Tohoku starting with electric “Prosperity in Partnership with power.” The Group rephrased this motto thereafter as follows: “The prosperity of the Tohoku region is essential to our own growth.” We’ve continued to do business under the Community” this philosophy for some 70 years. The strong concern for local communities expressed in this concept is a fundamental We seek to create value only the Tohoku Electric Power Group can deliver and to management value and the ultimate expression of the Tohoku Electric Power Group’s Vision Our realize growth and a more abundant society by continuing to take on challenges Management Philosophy of Prosperity in Partnership with the Community. This vision of and pursue innovation alongside our customers and our communities. extending our roots to contribute to the regions in which we operate is an unshakeable pillar from which all Group employees continue to approach their work, even amid dramatically changing business conditions. However, the way to achieve Prosperity in Partnership with the Community must The Tohoku Electric Power Group Slogan Strategies change with the times. To date, Prosperity in Partnership with the Community has referred to generating earnings by providing a stable, low-cost source of electricity to Yori, Sou, Chikara (The Strength to Work Alongside) customers in Tohoku and Niigata. Looking forward, we will seek to expand our business area and secure management resources beyond Tohoku and Niigata, while maintaining Creation Value Corporate Foundations to Support Progress on Business Business on Progress in our hearts the commitment to give back to the Tohoku and Niigata communities. Our motto, yori, sou, chikara, derives from the care we take in providing each and Through value created by progressive activities grounded in energy services and every customer with services suited to their lifestyles and working lives. creating solutions to social challenges, our goal is to contribute to Tohoku and Niigata, Moving forward, driven by our founding motive of serving as a bedrock for the attracting human resources, technology, and investment to the region. region, we will continue working hand-in-hand with local communities, delivering Essential aspects of putting this management philosophy into practice include services to the individuals within them based on a true sense of gratitude and receptiveness to the needs and issues confronting the customers who make up our broad vision of the future. local communities and the commitment of each individual employee to creating new Information Financial Financial Tohoku Electric Power Group Power Electric Tohoku forms of prosperity in joint efforts. The Tohoku Electric Power Group slogan—Yori, Sou, Chikara (The Strength to Work Alongside)—is a promise to our customers and to local communities. Based on the perspective of working together with and alongside our customers and communities, this promise says each and every Group employee will take this management Information Corporate Corporate philosophy to heart in his or her work and everyday activities. Under this slogan, we will seek to help build a comfortable, safe, reliable, and smart society and to provide the added value only the Tohoku Electric Power Group can deliver. 02 Introduction The Tohoku Electric Power Group Code of Conduct In 1999, the Tohoku Electric Power formulated the Tohoku Electric Power Code of Conduct as a code to guide employees in their duties. The code has been revised since then Top Management Top in light of the changing social environment and other factors. In 2017, by establishing the Tohoku Electric Power Group Code of Conduct, we expanded the scope to cover the from Message entire Tohoku Electric Power Group. The document was revised once again in February 2020 to serve as a Code of Conduct suitable for those implementing the Tohoku Electric Power Group Medium-/Long-Term Vision while reflecting societal understanding of recent trends and corporate ideals. In performing their duties in accordance with this Code and working together with and alongside our stakeholders, the Tohoku Electric Power Group and its employees will create and provide the value only we can create. About Tohoku Electric The Tohoku Electric Power Group Code of Conduct (excerpted from the Preamble and Principles of Conduct) Power Group Based on the Management Philosophy of Prosperity in and hold at heart an unwavering sense of ethics and a Background of the February 2020 revisions Partnership with the Community and our Group Slogan, deep knowledge and understanding of corporate ethics, The Code of Conduct was revised in February 2020 based Yori, Sou, Chikara (The Strength to Work Alongside ), we laws, and regulations. This means going beyond mere on the following items: will achieve sustained growth in partnership with society compliance, seeking to strengthen the Tohoku Electric The need to identify employee preparedness based on the by helping to build a smart society through services and Power Group’s groupwide culture of eschewing newly formulated Tohoku Electric
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