2018 Shikoku Electric Power Group Annual Report
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Shikoku Electric Power Group Annual Report SHIKOKU ELECTRIC POWER 2018 Business and CSR Activities GO TO TOP PAGE Shikoku Electric Power Group Annual Report 2018 Editorial Policy To provide stakeholders with a more complete understandting of its business activities, the Shi- koku Electric Power Group (“Yonden Group”) includes not only management and financial infor- User Guide mation but also non-financial information, such as summaries of its corporate social responsibility (CSR) activities, in the Shikoku Electric Power Group Annual Report. Further detailed content that was not published in this report is available on our website. Shikoku Electric Power Group Company Website Category tab Navigation buttons ◆ IR and Stock Information Detailed information for shareholders and investors is available on our website. ◆ How to Use Navigation Buttons http://www.yonden.co.jp/english/ir/index.html CONTENTS Go to previous page 1 PREVIOUS Go to next page See previous table Go to contents ◆ How to Use Category Tab Profile Top Message Business Activities Clicking on the category tab will bring you to the top page for each category Reporting Period Reference Guidelines for Presentation of Non-Financial Information Contact Information * The Global Reporting Initiative is a non-profit organization (NPO) This report covers activities from the fiscal year ended March 31, Global Reporting Initiative (GRI)* Sustainability Reporting Standards Shikoku Electric Power Co., Inc. headquartered in the Netherlands that is devoted to formulating and 2018. More-current information leading up to the publishing date of Environmental Reporting Guidelines (2018 version), Ministry of the Corporate Planning Group, Corporate Planning Dept., standardizing international guidelines for sustainability reports. A this report has also been included. Environment of Japan General Planning Division number of organizations, including companies, NPOs, accounting 2-5, Marunouchi, Takamatsu, Kagawa 760-8573, Japan federations, investment institutions, and labor unions, participate in Scope of Reporting Publication Date Tel: +81-87-821-5061 (Receptionist) Fax: +81-87-825-3018 the initiative, which has been active since fall 1997. This report covers Shikoku Electric Power Co., Inc (SEPCO) and its August 2018 E-mail: [email protected] subsidiaries and affiliated companies. (For more information, please refer to Subsidiaries and Affiliated Companies on page 122.) 1 Shikoku Electric Power Group Annual Report 2018 CONTENTS Profile Corporate Governance 69 VISION 3 Basic Approach to Corporate Governance 69 Value Creation Cycle 4 Transition to a Company with an Audit & Supervisory Sustainable Value Creation and ESG Initiatives 5 Committee 70 Major Operating Sites and Our Facility Locations 6 Corporate Governance System 71 Shikoku Electric Power Group by the Numbers 7 Policy and Process for Nominating Director Top Message 9 Candidates, Policy and Process for Deciding Officer Compensation 72 Business Activities 16 Efforts to Maintain Effectiveness of the Board Priority Initiatives for Fiscal 2018 17 of Directors 73 Expansion of Electricity Sales 18 Initiatives Regarding Internal Control Systems, Exhaustive Improvement of Business Risk Management 74 Initiatives Regarding Full Disclosure of Information 75 Efficiency 22 Board of Directors 76 Nuclear Power Generation 22 Thermal Power Generation 26 Renewable Energy 28 Financial Section / Corporate Information 77 Power Network 31 Data on Electric Power Business 78 Improvement of Management Efficiency 32 Eleven-Year Financial Summary 79 Creation and Expansion of Profit Sources Consolidated Balance Sheet 81 Outside of Electric Power Business 33 Consolidated Statement of Income 83 Consolidated Statement of Comprehensive Income 84 Telecommunications Services 33 Consolidated Statement of Changes in Equity 85 Gas Services 34 Consolidated Statement of Cash Flows 86 Overseas Businesses 35 Notes to Consolidated Financial Statements 87 Private Finance Initiatives, Nursing Care Business, Independent Auditor’s Report 116 Lifestyle Support Service Business, Agricultural Analysis of Business Results and Financial Position Businesses, Verification Test of Information (Consolidated) 117 Distribution Service Using Power Poles, Business and Other Risks 119 Open Innovation Program 36 Corporate Information 121 Corporate Data and Stock Information 124 CSR Activities 38 Yonden Group Action Charter 39 The 7 CSR Pillars 40 CSR Action Plans 41 Promoting Compliance 43 Advancing Environmental Preservation Activities 45 Practicing Transparent Management 55 Fostering Employee Motivation 57 Coexisting in Harmony with Communities 63 Main Communication Methods at a Glance 66 Outside Opinions 67 Caution Regarding Business Forecasts and Forward-Looking Statements In addition to historical facts regarding Shikoku Electric Power Company, Incorporated 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. 2 Shikoku Electric Power Group Annual Report 2018 We are committed to the continuous provision of high-quality services, centered on energy, that interconnect with the lives that people lead. In this way, we contribute to comfortable, safe, VISION and secure life as well as to the Shikoku region’s development. Shikoku Electric Power Group Vision Centered on the electric power business, we Drive Happiness Forward are developing its operations in a wide range of energy fields, such as the gas supply busi- ness and overseas power generation and business. Three Key Points in Realizing Our Group Vision Community Creating the Eco-Friendly Coexistence Future Integrated Energy Electric Power Our Group of the Future Business Telecommunications Business and Aiming to be a Multi-Utility Corporate Group Lifestyle Support Supporting Work and Life Three Business Domains Our group aims to evolve and grow as the most trusted partner for customers in Taking advantage of the strong brand image and trustworthy reputation that our Group has the Shikoku region, and as a corporate group capable of providing one-stop access to We provide all of the IT services necessary for cultivated in Shikoku, we offer services that are a full range of integrated energy, telecommunications, business or daily life on a one-stop basis. rooted in the lives of people in this region, such and business and lifestyle support services. These services include IT systems, telecom- as the operation and management of nursing munications, and even cable TV. care facilities and public facilities and the provi- sion of lifestyle support. 3 Shikoku Electric Power Group Annual Report 2018 By developing businesses in three fields centering on the electric power business using our management resources, Value Creation Cycle we are striving to continually create new value and achieve continuous growth to provide returns to all our stakeholders. Our Group’s Management Resources Value Creation in Three Fields Centered on the Electric Power Business Offer Value to All Our Stakeholders Customers Competitive Power Sources Comfortable, Safe, and Secure Living Integrated Energy Shareholders and Investors Human Resources and Technology Maintenance of Stable Dividends and Electric Power Healthy Management Business Business and Telecommunications Credibility and Brand Power Lifestyle Support Business Partners in Shikoku Shared Growth Opportunities Employees Healthy Financial Structure Working Environment where Employees can Demonstrate their Abilities and Work Comfortably Strengthen Gain New Opportunities Optimize Power Source Regional Society for Profit, Centered on the Selling Capacity Energy Field Configuration Revitalization of Shikoku Medium-Term Management Plan 2020 — Aiming for Sustainable Growth with Profitability Innovation — Further Enhance Management Resources Support a Cycle of Continuous Value Creation The 7 CSR Pillars Realizing a Stable Promoting Compliance Advancing Environmental Practicing Transparent Entrenching a Fostering Employee Coexisting in Harmony Electric Supply Preservation Activities Management Customer-First Mindset Motivation with Communities 4 Shikoku Electric Power Group Annual Report 2018 Seeking to support a cycle of continuous value creation based on the 7 CSR Pillars, we track the risks Sustainable Value Creation that may impede its ongoing growth along with opportunities for strengthening existing businesses and creating new businesses from the perspective of environmental, social, and governance (ESG) issues. and ESG Initiatives These risks and opportunities are reflected in business strategies. E Environmental preservation initiatives G Enhancement of corporate governance ■ Reduction of CO2 emissions ( P.48) ■ Compliance with the Yonden Basic Policy on Corporate Governance ( P.69) ■ Improving the thermal efficiency of thermal power plants ( P.26, P.49) ■ Adoption of the principles of Japan’s Corporate Governance Code ( P.69) ■ Promotion of renewable energy use ( P.29, P.35, P.49) ■ Transition to the Company with Audit and Supervisory Committee system ( P.70) Provision of services that contribute to energy