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Chubu Electric Power Company Group Annual Report 2013 For this report, waterless printing is used to eliminate harmful waste fluid. Chubu Electric Power Co., Inc. 1 Higashi-shincho, Higashi-ku, Nagoya, Aichi 461-8680, JAPAN Phone: +81-52-951-8211 (Main) www.chuden.co.jp/english Produced by the CSR & Business Reform Promotion Group Corporate Planning & Strategy Division This report is printed with environment- Published July 2013 friendly vegetable oil ink. www.chuden.co.jp/english Chubu Electric Power Group Corporate Philosophy Chubu Electric Power Group delivers the energy that is indispensable for people’s lives and so contributes to the development of society. Sincere and Sustained Effort We make a constant and sincere effort to fulfill our unchanging mission and earn the trust of our customers and society. Creativity and Spirit of Challenge We continually act with creativity and an enthusiasm for new challenges in order to pursue excellence in our services and meet the expectations of our customers and society. Independence and Cooperation We work together as individuals showing respect for one another to create a vibrant and dynamic corporate culture. 1 Chubu Electric Power Company Group Annual Report 2013 Editorial Policy CONTENTS Chubu Electric Power Company Group Annual Report 2013 In order to help all our stakeholders understand the entire Chubu Electric Power Group Corporate Philosophy 1 scope of our business activities, the Chubu Electric Power Group has comprehensively integrated its financial report Contents, Editorial Policy 2 (outlines of annual results and evaluations of performance by Chubu Electric Power Group’s Business Foundation 3 the management team and so on) and its non-financial report Financial/Operating and Other Statistics Highlights 4 (specific business initiatives and CSR activities and so on). Message from the Chairman and President 5 The Feature Article section of the report provides cover- age of the three priority targets we are taking, and focuses Feature Article on content that is not only vital from the perspective of the Measures to Improve the Safety of the Hamaoka Nuclear 7 Company but also of great interest to stakeholders. The non-fi- Power Station nancial report section is arranged in line with the core issues Measures to Ensure Business Continuity in the Event of a 13 stated in ISO 26000 (guidance on social responsibility) and Large Disaster presents the goals and performance of our CSR activities, the Measures to Ensure a Stable Supply of Electricity 17 specific content of activities, useful indicators and much more. Measures to Improve Management Efficiency 21 Basic Ideas on Investments 25 Date of Publication Specific Management July 2013 (Next report: scheduled in July 2014; previous Specific Management Policies report: August 2012) Chubu Electric Power Group Management Vision 2030— 26 “What We Aim For” Policies More Reliable, Economical and Flexible Fuel Procurement 27 Becoming “the Top Corporate Group in Energy Services” 29 Non-financial Information Overseas Energy Projects 31 ■ Scope of this report Major Activities in Fiscal 2012 and Goals and Plans for 2013 33 Organization Chubu Electric Power Co., Inc. and Group Companies CSR Period Fiscal year 2012 (April 2012 through March 2013) Corporate Governance 35 (This report also includes information regarding some Respect for Human Rights and Work Environment 43 important events and activities that occurred outside the Commitment to Environmental Conservation 47 CSR above period.) Ensuring Compliance Management 57 ■ Guidelines used as references Aiming to Be Customer-friendly 60 GRI, Sustainability Reporting Guidelines (3.1 Version) Interacting with Local Communities 64 Ministry of the Environment, Environmental Reporting Guidelines (2012 Version) Third-Party Review 69 ISO 26000 CSR Performance Indicators 70 Financial Statistics Summary of Financial Results FY 2012 72 Related Information Five-Year Operating and Financial Statistics 73 At the end of some reports, the number of pages that include Management Discussion and Analysis of Results 75 Financial Statistics details and related information are indicated. Consolidated Balance Sheets 79 (☞P. 00) Consolidated Statements of Operations 81 Consolidated Statements of Comprehensive Income 82 Consolidated Statements of Changes in Net Assets 83 About the Forecasts Consolidated Statements of Cash Flows 84 Notes to Consolidated Financial Statements 85 The future plans and forecasts described in this document are Nonconsolidated Balance Sheets 101 based on information the company possesses at the present time and involve potential risks and uncertainty. Therefore, Nonconsolidated Statements of Operations 103 actual performance or business developments in the future Independent Auditor’s Report 104 may differ from those described. Examples of potential risks or uncertainty include changes in the economic or competi- tive circumstances affecting a business sector, fluctuations in Corporate Data 105 fuel prices, or modifications of laws or regulations. Chubu Electric Power Company Group Annual Report 2013 2 Chubu Electric Power Group’s Business Foundation Chubu Electric Power Co., Inc. is Japan’s third-largest electric power company in power generation capacity, electric energy sold, operating revenues, and total assets. Chubu Electric Power serves an area of nearly 39,000 square kilometers in five prefectures of central Japan (Chubu, in Japanese), home to some 16 million people. The Chubu region is known as one of Japan’s leading manufacturing regions, and many world-class Japanese industries, including manufacturers of automobiles, machine tools, electric components, aircraft, and new materials, are centered here. ■ Schematic Diagram of Chubu Electric Power System ■ Region Served Substations Chubu region, consisting External substations (275 kV or more system) of Aichi Pref. Gifu Pref. Switching stations External hydroelectric power stations (275 kV or more system) (excluding some areas), Thermal power stations 500 kV external transmission line Mie Pref. (excluding some (excluding internal combustion Joetsu areas), Nagano Pref. and power generator) 275 kV external transmission line Hydroelectric power stations Shizuoka Pref. (area west (50 MW or more) * FC: Frequency converter of the Fujikawa River) Nagano Nuclear power station Gifu 500 kV transmission line Aichi 275 kV transmission line Shizuoka Mie Shin-Hokushin Tied to Hokuriku Electric Power Company Tied to Tokyo Toshin Electric Power Minami-Fukumitsu Company Linkage Station ■ ■ Kita-Matsumoto Saku Area Served Population Served Shin-Shinano approx. approx. 2 Shinano 39,000 km 16 million people Chushin Etsumi trunk line Takane-Daiichi % Nagano 10.5% 12.5 Shinano trunk line Mazegawa-Daiichi Okumino Mazegawa-Daini Yokoyama Gifu Aigi trunk line Sangi trunk line Gihoku Nanshin Tobu trunk line ■ GDP (Real) (FY 2010) ■ Electric Energy Sold Hokubu approx. (FY 2012) Seibu trunk line Shin-Kamiasou Nanshin trunk line Chuno ¥75 trillion 126.6 TWh Toyone trunk line Seino Seki Yasuoka Mie-Higashi Inuyama Aichi Tied to Kansai Oumi line Meijo Dengen Electric Power Hatanagi-Daiichi Company Ama Nagoya Mie Seibu Yahagi-Daiichi Okuyahagi- Minami-Buhei Daini Hiraoka Hatanagi-Daini Matsugae 14.5% 14.9% Okuyahagi- Umemori Seto Daiichi Ikawa Nishi-Owari Shimohiroi Toyone Shin-Toyone Nishi-Nagoya Shin-Nagoya Kanayama Kita-Toyota Okuizumi Higashi- Tied to Tokyo Tied to Tokyo Nagoya Miyoshi Tobu Electric Power Electric Power Company Kawagoe Nishi- Company Oigawa 154kV Nagoya Toei trunk line Tokai Higashi-Toyota Kawane Chita Toei Sakuma * Source: Annual Reports on Prefectural * Share among 10 electric Yokkaichi Daini Shin-Mikawa trunk line Suruga Accounts/Japan, Cabinet Office power companies Higashiura Nukata Shizuoka trunk line Higashi-Shimizu (FC*) Suzuka Kameyama Chita * Chubu Region: Aichi Pref., Gifu Pref., Sunen trunk line Shizuoka Abe Shin- Mie Pref., Shizuoka Pref. Shin-Suzuka Mikawa Kawaguchi Hekinan and Nagano Pref. Taketoyo Koda Mikawa Sunen Tohtoumi Daini-Hamaoka trunk line Chusei Hamaoka trunk line Kosai Shin-Sakura Tahara Atsumi Hamaoka Nansei Ise ■ Summary of Facilities (as of March 31, 2013) Power generation facilities Thermal 25,159 MW (12 locations) Hydroelectric 5,225 MW (183 locations) Nuclear 3,617 MW (1 location) Renewable energy 31 MW (3 locations) Owase-Mita Ikehara Total 34,032 MW (199 locations) Transmission facilities Transmission line 12,258 km Route length Transformation facilities Number of substations 940 locations Capacity 123.818 million kVA 300 MW* Linkage station 1 location Capacity 300 MW Distribution facilities Distribution line length 131,978 km * Frequency conversion facilities listed separately 3 Chubu Electric Power Company Group Annual Report 2013 Financial/Operating and Other Statistics Highlights (Consolidated, the company’s fiscal year (FY) is from April 1 to March 31 of the following year in this report.) ■ Financial Statistics Millions of yen FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 For the Year Operating Revenues 2,509,982 2,238,551 2,330,891 2,449,283 2,648,994 Operating Income (Loss) 182,234 200,032 174,237 (37,667) (14,483) Ordinary Income (Loss) 130,505 178,543 146,274 (67,857) (43,542) Net Income (Loss) (18,968) 108,558 84,598 (92,195) (32,161) Depreciation 312,464 297,517 284,046 289,451 276,544 Capital Investments 277,707 272,106 276,713 280,581 332,506 At Year-End Total Assets 5,470,128 5,299,976 5,331,966 5,647,169 5,882,775 Shareholders’ Equity*1 1,616,654 1,637,601 1,660,130 1,511,259 1,453,782 Outstanding Interest-Bearing Debt 2,789,038 2,539,551 2,495,125 2,965,876 3,260,525 Per Share of Common Stock (Yen) Net Income (Loss)—Basic (24.37) 140.47 110.97 (121.67) (42.45) Net Assets 2,076.93 2,146.82 2,190.89 1,994.51 1,918.75 Cash Dividends 60 60 60 60 50 Financial Indicators ROA*2(%) 3.7 4.0 3.4 (0.6) (0.0) ROE (%) (1.1) 6.7 5.1 (5.8) (2.2) Cash Flow Data Cash Flows from Operating Activities 358,880 539,105 449,755 176,844 227,613 Cash Flows from Investing Activities (215,134) (242,394) (336,055) (247,073) (330,603) Cash Flows from Financing Activities (90,237) (333,496) (105,088) 422,007 249,560 *1.