Kansai Electric Power : Announcement of financial results for the 3 months ended June 30,2022

Unaudited Financial Release (Consolidated) for the First Quarter

The information below is an English translation of extracts from Unaudited Financial Release (Consolidated) for the first quarter that has been filed with the major Japanese stock exchanges (Tokyo) for public inspection. These financial statements have been prepared in accordance with accounting principles and practices generally accepted in Japan.

July 29, 2022

The Kansai Electric Power Co., Inc. (Code: 9503)

6-16 Nakanoshima 3-chome,Kita-ku, Osaka (URL https://www.kepco.co.jp/)

Company Representative: Nozomu Mori, Director, Representative Executive Officer, President

Contact: Takahiro Uenishi, Senior General Manager, Office of Accounting and Finance

Tel: [phone]

Ⅰ. Performance over the Three-Months ended June 30, 2022 and 2021

(Figures are rounded down to the nearest million yen)

1. Results of Operations
							(Million yen)
				Three-Months	Change
				ended June 30
		2021	2022	21/20	22/21
	Operating Revenues	568,844	767,567	-18.9%	34.9%
	Operating Income		21,645	-43,201	-55.4%	―
	Ordinary Income *		23,171	-17,129	-53.7%	―
	Net Income attributable to owners of		15,267	-11,434	-57.5%	―
	the parent
	Net Income per Share	17.09 yen	-12.81 yen	―	―
	Fully Diluted Net Income per Share			―		―	―	―
	Comprehensive income
	Three-months ended June 30, 2022:		30,521 million yen
	Three-months ended June 30, 2021:		15,418 million yen

Notes: Ordinary Income means Income before Provision for/Reversal of Reserve for Fluctuations in Water Level, Special Item and Income Taxes.

2. Financial Position
			(Million yen)
		As of	As of
		March 31, 2022	June 30, 2022
	Total Assets	8,656,430	8,619,794
	Net Assets	1,705,557	1,724,841
	Equity Ratio	19.2%	19.4%

Notes: Equity capital
As of June 30, 2022:	1,672,102 million yen
As of March 31, 2022:	1,659,574 million yen

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Ⅱ. Dividends

	Interim dividend	Year-end dividend	Annual dividend
	per share	per share	per share
FY 3/2022	25.00 yen	25.00 yen	50.00 yen
FY 3/2023(Forecasts)	―	―	―

Notes: The interim and year-end dividend forecasts for the fiscal year ending March 31, 2023 have not been determined at this time.

Ⅲ. Financial Forecasts

	(Billion yen)
	4/1/2022 - 3/31/2023 (Forecasts)
Operating Revenues	3,420
Operating Income	-110
Ordinary Income	-100
Net Income attributable to owners of the parent	-75
Net Income per Share	-84.03 yen

Ⅳ. Other

1. Change in major consolidated subsidiaries: None

2. Difference in major accounting methods from the latest consolidated financial year: None

1. Number of shares outstanding (included Treasury stock)

	As of June 30, 2022:	938,733,028 shares
	As of March 31, 2022:	938,733,028 shares
4.	Number of Treasury stock
	As of June 30, 2022:	46,242,540 shares
	As of March 31, 2022:	46,248,567 shares
5.	Number of Average stock
	As of June 30, 2022:	892,484,466 shares
	As of June 30, 2021:	893,113,404 shares

Notes: We have adopted BIP (Board Incentive Plan) Trust mechanism, and the number of treasury stock at year end includes our shares held by said trust account (503,178 shares as of June 30, 2022). Additionally, our shares held by said trust account are included in treasury stock that is deducted in the calculation of the number of average stock.

Notification

(Report the decision of specific measures and the progress of the business improvement plan)

We offer our most sincere apologies for the inconveniences and concern placed upon our customers, shareholders, investors and other parties involved regarding issues such as company executives and employees receiving cash and gifts from external stakeholder.

In response to the Business Improvement Order issued against The Kansai Electric Power Co., Inc. (KEPCO) on March 29, 2020 under the Electricity Business Act in connection with this issue, KEPCO developed a business improvement plan for recurrence prevention on March 30, 2020 and reported the decision of specific measures to prevent reoccurrences and the progress of them to the Ministry of Economy, Trade and Industry on June 29, October 13, 2020 and March 2, December 27, 2021.

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For the detail of the progress of the Business Improvement Plan, please refer our website.

We will ensure the implementation of those measures. And then we will follow up the implementation in light of external objective perspectives and if we need, we will add the improvement measures.

All officers and employees will make best efforts for recovery of trust, with an unwavering resolve to create completely new KEPCO.

(The inspection by the Japan Fair Trade Commission)

We were inspected by the Japan Fair Trade Commission (hereafter the "JFTC") based on the Antimonopoly Act, on suspicion of the restricting to acquire customers in extra-high voltage and high voltage power service on April 13 and July 13, 2021. On this occasion, we accept the fact that the inspection was conducted in a solemn manner, and we will fully cooperate with the inspection of the JFTC.

Depending on the progress of this matter, this could affect our consolidated financial results. However, it is difficult to estimate the impacts rationally at present, and we do not reflect the impacts to our consolidated financial statements and forecasts.

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<Reference>Electricity Sales

					(GWh)
			Three-months	Three-months	Change (%)
			ended June 30, 2021	ended June 30, 2022
Total electric sales	26,525	28,569	107.7
	Retail electric sales	22,769	24,926	109.5
		Residential	6,872	6,477	94.3
		Commercial and	15,897	18,448	116.0
		Industrial
	Electricity sales to other	3,756	3,643	97.0
	non-utility companies

Notes: Total electricity sales indicates those in energy business attributable to the parent company. Some rounding errors may be observed.

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Consolidated Balance Sheets

		(Million yen)
Account	As of	As of
March 31, 2022	June 30, 2022
(Assets)
Property	7,317,298	7,369,661
Electric utility plant and equipment	3,467,992	3,454,604
Hydroelectric power production facilities	299,252	303,887
Thermal power production facilities	298,890	291,970
Nuclear power production facilities	742,950	728,359
Transmission facilities	760,726	761,387
Transformation facilities	421,617	421,561
Distribution facilities	813,428	817,121
General facilities	112,556	111,919
Other electric utility plant and equipment	18,569	18,398
Other non-current assets	904,567	901,079
Construction in progress	952,357	956,190
Construction and retirement in progress	751,744	750,210
Special account related to nuclear power	53,110	51,113
decommissioning
Special account related to reprocessing of spent nuclear	147,502	154,866
fuel
Nuclear fuel	510,571	508,686
Loaded nuclear fuel	51,036	61,247
Nuclear fuel in processing	459,535	447,439
Investments and other assets	1,481,810	1,549,100
Long-term investments	440,072	457,647
Long-term investments in subsidiaries and associates	602,006	634,891
Deferred tax assets	351,619	357,017
Other	115,098	126,897
Allowance for doubtful accounts	-26,987	-27,353
Current assets	1,339,131	1,250,132
Cash and equivalents	469,052	264,528
Notes and accounts receivable and contract assets	307,904	300,363
Inventories	199,920	227,758
Other	365,049	460,310
Allowance for doubtful accounts	-2,795	-2,829
Total assets	8,656,430	8,619,794

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