Kansai Electric Power Incorporated : Announcement of financial results for FY ended March 31,2021

Unaudited Financial Release (Consolidated) for the Year ended March 31, 2021

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

April 28, 2021

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, President and Director

Contact: Michiya Sakata, Senior General Manager, Office of Accounting and Finance

Tel: [phone]

Ⅰ. Performance over the Year ended March 31, 2021 and 2020

(Figures are rounded down to the nearest million yen)

1. Results of Operations
				(Millions of Yen)
		Year ended March 31	Change
		2020	2021	20/19	20/21
	Operating Revenues	3,184,259	3,092,398	-3.7%	-2.9%
	Operating Income	206,956	145,746	1.0%	-29.6%
	Ordinary Income *	211,541	153,850	3.9%	-27.3%
	Net Income attributable to owners of	130,002	108,978	13.0%	-16.2%
	the parent
	Net Income per Share	145.55yen	122.02yen	―	―
	Fully Diluted Net Income per Share	―	―	―	―

Comprehensive income
Year ended March 31, 2021:	129,881 million yen
Year ended March 31, 2020:	136,049 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
			(Millions of yen)
		As of	As of
		March 31, 2020	March 31, 2021
	Total Assets	7,612,729	8,075,755
	Net Assets	1,641,754	1,725,557
	Equity Ratio	21.0%	20.9%

Notes: Equity capital
As of March 31, 2021:	1,684,528 million yen
As of March 31, 2020:	1,600,793 million yen

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3. Statements of Cash Flows
						(Millions of Yen)
					Year ended March 31
					2019	2020
		Net cash provided by Operating Activities	463,408	369,215
		Net cash used in Investing Activities	-577,370	-660,755
		Net cash provided by Financing Activities	211,222	325,643
		Cash and Cash Equivalents, End of year	255,458	291,266
Ⅱ. Dividends
			Interim dividend		Year-end dividend	Annual dividend
			per share		per share	per share
FY 3/2020	25.00 yen		25.00 yen	50.00 yen
FY 3/2021	25.00 yen		25.00 yen	50.00 yen
FY 3/2022	25.00 yen		25.00 yen	50.00 yen
Ⅲ. Financial Forecasts
						(Billions of yen)
						4/21-3/22 (Forecasts)
		Operating Revenues				2,500
		Operating Income				90
		Ordinary Income*				100
		Net Income attributable to owners of the parent		70
		Net Income per Share				78.38 yen

Notes: From FY 3/2022, we apply to "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29), etc. and FY 3/2022 financial forecasts are also applied to them.

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 March 31, 2021:	938,733,028 shares
	As of March 31, 2020:	938,733,028 shares
4.	Number of Treasury stock
	As of March 31, 2021:	45,616,692 shares
	As of March 31, 2020:	45,589,484 shares
5.	Number of Average stock
	As of March 31, 2021:	893,130,560 shares
	As of March 31, 2020:	893,162,445 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 (127,857 shares as of March 31, 2021). 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.

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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, 2021.

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)

In April, 2021, 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 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 : Non-consolidated>

Performance for the Years ended March 31, 2021 and 2020

(Figures are rounded down to the nearest million yen)

1. Results of Operations

			(Millions of Yen)
	Year ended March 31	Change
	2020	2021	20/19	20/21
Operating Revenues	2,658,836	2,332,608	-4.9%	－
Operating Income	125,669	-5,768	-6.2%	－
Ordinary Income *	125,010	36,117	-4.2%	－
Net Income	79,100	39,503	-9.5%	－
Net Income per Share	88.53 yen	44.22 yen	－	－
Fully Diluted Net Income per Share	－	－	－	－

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

On April 1, 2020, The Kansai Electric Power Co., Inc. transferred its general power transmission and distribution business through company split to Kansai Transmission and Distribution, Inc. and that caused some gaps between FY 3/2021 and FY 3/2020 financial results. We omit to describe the change of 20/21 because we cannot draw a comparison between FY 3/2021 financial results and FY 3/2020 financial results appropriately.

2. Financial Position
			(Million Yen)
		As of March 31
		2020	2021
	Total Assets	6,747,858	6,858,406
	Net Assets	1,001,193	1,017,500
	Equity Ratio	14.8%	14.8%
	Net Assets per Share	1,120.61 yen	1,138.88 yen
	Notes: Equity capital
	As of March 31, 2021:	1,017,500 million yen
	As of March 31, 2020:	1,001,193 million yen

On April 1, 2020, The Kansai Electric Power Co., Inc. transferred its general power transmission and distribution business through company split to Kansai Transmission and Distribution, Inc. and that caused some gaps between FY 3/2021 and FY 3/2020 financial results. We omit to describe the change of 20/21 because we cannot draw a comparison between FY 3/2021 financial results and FY 3/2020 financial results appropriately.

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Electricity Sales

					(GWh)
			Year-ended	Year-ended	Change (%)
			March 31, 2020	March 31, 2021
Total electric sales	127,335	117,642	92.4
	Retail electric sales	112,992	102,331	90.6
		Residential	34,832	34,014	97.7
		Commercial and	78,159	68,317	87.4
		Industrial
	Electricity sales to	14,343	15,311	106.7
	non-utility companies

Notes: Total electricity sales indicates those in power generation and sales business.

Figures in FY 3/2020 are after adjusting of the impacts of spin-off the transmission and distribution business.

Some rounding errors may be observed.

[Power generation] (Sending end)

				(GWh)
		Year-ended	Year-ended	Change (%)
		March 31, 2020	March 31, 2021
Kansai Electric
	Hydroelectric	13,523	12,775	94.5
	Fossil Fuel	57,916	61,437	106.1
	Nuclear	26,717	15,335	57.4
	Renewable energies	13	28	227.4
Purchased (sold) power from	22,985	19,664	85.5
other companies
Power used for pumped storage	-2,570	-2,216	86.2
	Total	118,221	107,024	90.3
Retail electric sales	112,992	102,331	90.6
Water run-off ratio (%)	98.6	96.5	－

Notes: Figures in FY 3/2020 are after adjusting of the impacts of spin-off the transmission and distribution business.

Some rounding errors may be observed.

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