Kansai Electric Power : Announcement of financial results for the 9 months ended December 31,2021

Unaudited Financial Release (Consolidated) for the Third Quarter

The information below is an English translation of extracts from Unaudited Financial Release (Consolidated) for the third 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.

January 28, 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: Takashi Morimoto, Director, Representative Executive Officer, President Contact: Takahiro Uenishi, Senior General Manager, Office of Accounting and Finance

Tel: [phone]

Ⅰ. Performance over the Nine-Months ended December 31, 2021 and 2020

(Figures are rounded down to the nearest million yen)

1. Results of Operations
				(Million yen)
		Nine-Months	Change
		ended December 31
		2020	2021	20/19	21/20
	Operating Revenues	2,184,240	1,949,771	-7.5%	-10.7%
	Operating Income	142,997	88,331	-15.3%	-38.2%
	Ordinary Income *	161,140	114,703	-14.1%	-28.8%
	Net Income attributable to owners of	115,158	73,588	-15.3%	-36.1%
	the parent
	Net Income per Share	128.94yen	82.42yen	―	―
	Fully Diluted Net Income per Share	―	―	―	―
	Comprehensive income
	Nine-months ended December 31, 2021:	28,667 million yen
	Nine-months ended December 31, 2020:	126,962 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, 2021	December 31, 2021
	Total Assets	8,075,755	8,368,178
	Net Assets	1,725,557	1,712,771
	Equity Ratio	20.9%	19.9%

Notes: Equity capital
As of December 31, 2021:	1,667,053 million yen
As of March 31, 2021:	1,684,528 million yen

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Ⅱ. Dividends

		Interim dividend		Year-end dividend	Annual dividend
		per share		per share	per share
FY 3/2021	25.00 yen		25.00yen	50.00 yen
FY 3/2022	25.00 yen		25.00yen(Forecast)	50.00 yen(Forecast)
Ⅲ. Financial Forecasts
					(Billion yen)
					FY 3/2022 (Forecasts)
	Operating Revenues				2,800
	Operating Income				70
	Ordinary Income*				100
	Net Income attributable to owners of the parent		65
	Net Income per Share				72.80 yen

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

Ⅳ. Other

1. Change in major consolidated subsidiaries: None

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

1. Number of shares outstanding (included Treasury stock)

As of December 31, 2021:	938,733,028 shares
As of March 31, 2021:	938,733,028 shares
4. Number of Treasury stock
As of December 31, 2021:	46,025,771 shares
As of March 31, 2021:	45,616,692 shares

5. Number of Average stock

Nine-months ended December 31, 2021: 892,891,402 shares

Nine-months ended December 31, 2020: 893,134,391 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 the said trust account (515,236 shares as of December 31, 2021). Additionally, our shares held by the said trust account are included in treasury stock that is deducted in the calculation of the number of average stock.

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Notification

(Report of 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 stakeholders.

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, March 2 and December 27, 2021.

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

We will ensure the implementation of those measures. And then we will follow on 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)
			Nine-months ended	Nine-months ended	Change (%)
			December 31, 2020	December 31, 2021
Total electric sales	86,382	88,021	101.9
	Retail electric sales	74,890	72,462	96.8
		Residential	23,307	21,560	92.5
		Commercial and	51,584	50,902	98.7
		Industrial
	Electricity sales to other non-	11,492	15,558	135.4
	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
Mar. 31, 2021	Dec. 31, 2021
(Assets)
Property	7,071,768	7,199,050
Utility facilities	3,492,389	3,481,613
Hydroelectric power production facilities	299,140	305,231
Thermal power production facilities	325,142	305,976
Nuclear power production facilities	747,453	745,352
Transmission facilities	773,564	767,442
Transformation facilities	416,558	419,409
Distribution facilities	804,741	813,000
General facilities	106,529	106,459
Other utility facilities	19,257	18,741
Other plant and equipment	834,888	857,322
Construction in progress	862,783	894,461
Construction and retirement in progress	684,652	717,021
Special account related to nuclear power decommissioning	59,074	55,106
Special account related to reprocessing of spent nuclear fuel	119,057	122,333
Nuclear fuel	528,442	511,643
Loaded nuclear fuel	72,593	56,585
Nuclear fuel in processing	455,848	455,058
Investments and other assets	1,353,264	1,454,009
Long-term investments	384,756	423,334
Investments in and advances to subsidiaries and	550,897	588,579
associated companies
Deferred tax assets	326,785	346,253
Other	97,237	115,052
Allowance for doubtful accounts	-6,411	-19,210
Current assets	1,003,987	1,169,127
Cash and time deposits	249,281	276,223
Accounts receivable	327,142	-
Notes and accounts receivable - trade and contract assets	-	275,553
Inventory assets	182,899	204,146
Other	266,219	419,260
Allowance for doubtful accounts	-21,556	-6,055
Total assets	8,075,755	8,368,178

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