Kansai Electric Power Group Integrated Report 2023

INTEGRATED REPORT

2023

CONTENTS
Kansai Electric Power Group Overview � � � � � � � � � � � � � 1
Contents, Editorial Policies
Kansai Electric Power Group Purpose & Values

Medium-term Management Plan

23

Information and Telecommunications Business88

1

Message from the Executive in Charge of Accounting and Finance

30

Life / Business Solution Business

90

2

Materiality for the Kansai Electric Power Group (Important issues)

31[Special Feature 3][Special Feature 1]
Apologies for Scandals and Overview of Business Improvement Plan

Message from the President
The Business of Kansai Electric Power in Figures
Financial and Nonfinancial Highlights

4
7
11
13

Value Creation Story � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 15
History of Value Creation[Special Feature 2] Bolstering Our Strengths
Value Creation Process for the Kansai Electric Power Group

15
17
21

Medium-term Management Plan� � � � � � � � � � � � � � � � � � � � � 23

Establishment of Innovation Development Division
Shaping the Vital Platform for the Future

35

Addressing Climate Change / TCFD

41

Commitment to Solutions

50

Promoting Innovation

56

DX Strategy

58

Promoting Value Analysis (VA)

61

Human Capital Strategy

62

Business Overview � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 73
Energy Business

73

Transmission and Distribution Business

83

Foundation to Support Value Creation � � � � � � � � � � � 92
Message from the Chairman of the Board

92

Messages from the Outside Directors

94

Directors

96

Executive Officers

100

Corporate Governance Systems

101

Compliance

112

Risk Management

117

Respect for Human Rights

122

Financial and Corporate Information � � � � � � � � � � � � � 124
Financial Statements

124

Corporate Information

126

Editorial Policies• GRI: GRI Sustainability Reporting Standards; GRI Sustainability Reporting Guidelines(G4) (Disclosure items by industry) • Ministry of the Environment: Environmental Report
Guidelines (2018 Edition) • ISO 26000 • IIRC: International Integrated Reporting Framework• Ministry of Economy, Trade and Industry: Guidance for Integrated Corporate Disclosure
and Company-Investor Dialogues for Collaborative Value Creation • Ministry of Economy,
Trade and Industry: Guide for SDGs Business Management

Kansai Electric Power Group Integrated Report 2023

Sustainability and Quality Promotion Group, Office of Corporate Planning,
The Kansai Electric Power Co., Inc.
3-6-16 Nakanoshima, Kita-ku, Osaka 530-8270, Japanavailable, and involves potential risks and uncertainties. For this reason, the actual
performance and business environment may differ from what is projected in this reportdue to changes in various factors, including changes in the economic situation, market
trends, and revisions to relevant laws and regulations.

Report publication date

Positioning of this report

Published September 2023 / FY 2024: To be published in autumn of 2024

Financial information

Scope of report
Period covered: April 1, 2022 to March 31, 2023 (We will also report on important
information that may fall outside of that time frame.)

WebsiteCompanies covered: The Kansai Electric Power Co., Inc., and Kansai Electric PowerGroup companies.

Integrated Report“The Company” refers to the Kansai Electric Power Co., Inc.; the names of the various
group companies are clearly stated in the relevant text. Unless otherwise specified,initiatives taken by the Kansai Electric Power Co., Inc, and Kansai Transmission andDistribution, Inc. are provided.
Caution concerning forward-looking statements
Information contained in this report regarding future projections related to the Group’splans, strategies, and anticipated performance is based on information currently

Kansai Electric Power Group Integrated Report 2023

INTEGRATED REPORT

2023

Financial statements(securities report, etc.)
Corporate Governance
ReportCompleteness

Reference guidelines, etc.

Place of publication

Conciseness

In March 2021, the Group formulated the Kansai Electric Power Group Purpose &Values and the Kansai Electric Power Group Medium-term Management Plan
(2021−2025). Following this, we set up the Zero Carbon Vision 2050 in order tomore voluntarily and proactively respond to global warming issues, and in
March 2022 formulated the Zero Carbon Roadmap that lays out a path towardrealization of this vision.
This report has been edited to systematically disclose our specific efforts
based on the above philosophy, plan, and vision, with the aim of conveying theGroup’s value creation story regarding achievement of sustainable growth.
We hope that this report will help build good relationships between theGroup and its stakeholders.

ESG ReportNonfinancial information1

Kansai Electric Power Group
Purpose & Values
In March 2021, we formulated the Kansai Electric Power Group Purpose & Values as our new management
philosophy. Under this philosophy, the Group’s ultimate overarching concept, the Group has announced that
it will carry out business activities that promote the Values of Fairness, Integrity, Inclusion, and Innovation toachieve its Purpose of Serving and Shaping the Vital Platform for a Sustainable Society for the benefit of its
customers and society.

存在意義 Purpose「あたりまえ」を守り、創る
Serving and Shaping the Vital Platform
for a Sustainable Society

大切にする価値観 Values

公正Fairness

誠実

Integrity

共感

Inclusion

挑戦

Innovation

私たちは、安全を守り抜くことを前提に、
「公正」
「 誠実」
「 共感」
「 挑戦」を大切にして行動しますWith dedication to safety and security, we will act upon the values of Fairness,
Integrity, Inclusion and Innovation

Kansai Electric Power Group Integrated Report 2023

2

Kansai Electric Power Group
Purpose & Values

Philosophy system

Sustainability promotion system

We have positioned our Zero Carbon Vision 2050 and Medium-term Management Plan as the concrete embodiment of our Purpose,and the Kansai Electric Power Group Code of Conduct and Kansai Electric Power Group Code of Conduct for Safety as an enactmentof the Values we hold dear. Our Brand Statement forms a concise summary to publicize the Group’s corporate stance internally andto the public.

As a corporate group that aims to be of benefit to ourcustomers and communities, we promote sustainabilityfocused initiatives to achieve growth and development forourselves, but also to resolve global societal issues and socontribute to making society more sustainable. To further
advance these initiatives, we have established theSustainability Promotion Council, which is chaired by the
President. In addition to formulating a series of comprehensive
measures for the entire Group, the Sustainability Promotion
Council establishes extensive initiatives that allow the Group tocontribute to the sustainable development of society anddeploys a range of concrete activities.
Issues of a specialized nature are sent to committees suchas the Sustainability Promotion Board for deliberation. The
policies formulated by the Sustainability Promotion Council
are communicated to each operating division and businesslocation, which then develop their own activities accordingly.
Each group company also develops its own sustainability
promotion activities independently, while staying incommunication with the Kansai Electric Power Company.

Brand Statement
ゼロカーボンビジョン2050
Zero Carbon Vision 2050

存在意義
Purpose

中期経営計画Medium-term Management Plan

関西電力グループ行動憲章

大切にする価値観
ValuesBrand Statement

Code of Conduct

We wish to be a source of power for our customers andcommunities by serving them with sincerity and passion.

関西電力グループ安全行動憲章
Code of Conduct for Safety

Board of Directors

Activities to implement the management philosophy
We have established an activity plan to spread awareness of the management philosophy among all employees and to incorporate
it into practice of daily tasks. Based on this plan, we are working on activities that include opinion exchanges between management
and employees, varied types of training, workplace-specific discussions, distribution of e-mail newsletters, and support activities forgroup companies.
One aspect of the activities is the Conduct Cards, which list the Management Philosophy, Compliance Checklist, and Safe Action
Declaration, that we distribute to all employees to carry. The backs of the cards display each employee’s personal conduct vows, andemployees use these cards to check their conduct and goals in their own work. In fiscal 2022, looking back on the time when ourmanagement philosophy (Purpose & Values) was formulated, we added videos introducing the background and thoughts behind it.
We also included explanatory materials on how it was written in English, and discussion tools for “Innovation” among other “Values.”
All of this was undertaken in the interest of making our management philosophy easier to understand and put into practice.

Kansai Electric Power Group Integrated Report 2023

Executive Meeting
Sustainability Promotion Council
Chair: President

Divisions, offices, andbusiness sections

Kansai Transmission
andDistribution, Inc.

Sustainability
Promotion Board

Group companies

3

Kansai Electric Power Group Overview

SpecialFeature1

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Overview of business improvement plan and apology for inappropriate handling of
the customer information of power producers and suppliers

Message
An apology for the improper handling of the customer information of power producers and suppliers
and measures to prevent any recurrences

We will do everything to reform ourselves into a corporate groupthat is truly committed to compliance.
To our valued stakeholders
Since the incident of receipt of cash and gifts, we have worked on various measures including governance reforms under a new
business management system that incorporates objective and external perspectives. However, a series of incidents have occurred
recently within the Group, including the inappropriate handling of power producer and supplier customer information andviolations of the Anti-Monopoly Act, causing great concern to our customers and society at large, for which we again offer oursincerest apologies.
To ensure that this kind of incident will never happen again, we have formulated a business improvement plan and we aredetermined to carry it through. We will fundamentally strengthen internal controls for the entire Group through establishing aframework and rules for compliance with laws and regulations, boosting training and education, and setting up a new Compliance
Promotion Headquarters that will be responsible for ensuring compliance, risk management, and other functions. In addition, we
have established a new Organizational Climate Reform Committee, which I chair. This committee will create an organizational
climate that encourages everyone in the Group to openly discuss their own thoughts and observations so that we can all put
compliance into practice.
Our business is based on the trust that customers and society have placed in us. We will do everything possible to reform
ourselves into a genuinely compliance-oriented corporate group, so that we can earn back your trust. We ask for your continued
understanding and cooperation going forward.

Nozomu Mori
Director, Representative Executive Officer, President

Kansai Electric Power Group Integrated Report 2023

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Kansai Electric Power Group Overview

SpecialFeature1

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Overview of the Business Improvement Plan

Background and causes of violation of the Electricity Business Act, etc., due to improper handling of information on customers of
power producers and suppliers

In December 2022, it became clear that some of our employees hadbrowsed and used information on customers of power producers
and suppliers other than us (hereinafter, “information on PPS
customers”) managed by Kansai Transmission and Distribution, Inc.
● Our questionnaire surveys and interviews found that for the 13
screens and two forms for special-high voltage and high voltage,
which were browsable, information on PPS customers was notviewed for the purpose of making proposals to customers. On theother hand, regarding the four low-voltage screens, information on●

announced a business improvement plan on May 12, 2023.

PPS customers turned out to have been viewed for the purpose of
making proposals to customers.

Background

It was also found that information on PPS customers was included invarious data used for preparing electric power transaction reports
and sending direct mails regarding the abolishment of posting
meter reading slips to the mail boxes of each customer.
Subsequently, measures were taken to prevent access to the data,
and the information leakage problem was resolved.
● In response to the incident, we received a business improvement
order from the Minister of Economy, Trade and Industry pursuant to
the Electricity Business Act on April 17, 2023, and formulated and●CausesInadequate development and operation of the information systemand overestimating its reliability● Inability to adapt to the changing business environment (lack ofawareness for achieving fair competition)● Issues with the organizational culture, etc. (as for practice ofcompliance, it was not thoroughly implemented in specificoperations, customers in our immediate vicinity were prioritized, etc.)●

Background and causes of violation of the Anti-Monopoly Act in special-high voltage and high voltage electric power transactions
Background●

The Company was acknowledged as follows by the Fair Trade
Commission on March 30, 2023 of being engaged in acts against
Article 3 of the Anti-Monopoly Act, which prohibits unreasonable
restraint of trade (hereinafter, “the Acts”).
▶ T he Company, Chubu Electric Power Co., Inc., and Chubu ElectricPower Miraiz Co., Inc. mutually agreed to limit sales activities toacquire large-scale users located in the other party’s supply areasfrom November 2, 2018 to October 28, 2020, at the latest.
▶

T he Company and Chugoku Electric Power Co., Inc. (hereinafter,“Chugoku Electric Power”) mutually agreed to restrict sales
activities to acquire special-high voltage and high voltage users
located in the other party’s supply areas, as well as government
offices located in the Chugoku Electric Power’s supply areas,

Kansai Electric Power Group Integrated Report 2023

from November 8, 2018 to October 28, 2020, at the latest. The
Company also restricted itself to bid participation and low-priced
bidding in Chugoku Electric Power’s supply areas.
▶ T he Company and Kyushu Electric Power Co., Inc. (hereinafter,“Kyushu Electric Power”) mutually agreed to restrict low-priced
bidding in the other party’s supply areas from October 12, 2018
to October 28, 2020, at the latest. Kyuden Mirai Energy Co., Inc.
was informed of the aforementioned matter by Kyushu ElectricPower by October 31, 2018 at the latest, and took part in the
aforementioned restriction.
● The Company stopped the violative acts prior to the on-site
inspection and filed an application for the Leniency Program with
the Japan Fair Trade Commission, which was approved. Accordingly,
the Company has not received either a surcharge payment order ora cease-and-desist order.

●

In response to the incidents, the Company received an business
improvement order from the Minister of Economy, Trade andIndustry pursuant to the Electricity Business Act on July 14, 2023,
and formulated and announced a business improvement plan on
August 10, 2023.

CausesLack of awareness of business rules after policy shift to liberalizationof electricity market● Insubstantial awareness of legal compliance● Lack of knowledge and understanding of Anti-Monopoly Act● Lack and malfunction of checking functions to acts of senior
management●

5Kansai Electric Power Group Overview

SpecialFeature1

Value Creation Story

Medium-term Management Plan

Foundation to Support Value Creation

Financial and Corporate Information

Overview of the Business Improvement Plan

Business Improvement Plan for violation of the Electricity Business Act, etc., due toimproper handling of information on PPS customers (submitted on May 12, 2023)

Individual preventive measures
based on the causes of incidents

Business Overview● Measures to be taken promptly (Customer Solution Division)

Overhaul of business operation and information systems

Business Improvement Plan for violation of the Anti-Monopoly Act in transactions ofspecial-high voltage and high voltage electric power (submitted on August 10, 2023)● Measures to be taken promptly (violation of the Anti-Monopoly Act)

Development of internal rules, etc., to encourage compliance with the Anti-Monopoly Act

Development of compliance training and a system for ongoing training
Strengthen dialogues with employees to gather their opinions

Improvement of internal education, training, etc., to promote understanding of theAnti-Monopoly Act and to re-instill compliance awarenessStrengthen the checking system to ensure the appropriateness of operations
Dealing with subcontractors● Physical separation of information systems relating to wheeling information, etc.

Strengthening of the support system to prevent violations of the Anti-Monopoly Act
Strengthening of auditing functions

Common recurrence prevention measures
based on underlying causes● Commitment to fair competition by upper level management(The management will ensure an increase in awareness of the paradigm shift in competition policies and declare a clear-cut commitment to breaking away from violations of code of conduct
stipulated in the Anti-Monopoly Act and the Electricity Business Act.)● Strengthening internal controls

Strengthening carried out through the newly established Compliance Promotion Headquarters (strict observance of laws and regulations, improvement in the effectiveness of internal controls,
training enhancement, improvement and enhancement of whistleblowing systems)
Strengthening of internal audits (expansion of the scope of workplace communication, implementation of site audits, strengthening of monitoring, improvement and reinforcement of thestructure of the Office of Internal Auditing, and improvement of audit quality by making use of outside knowledge)● Reforms of organizational climate(Establishment of the Organizational Climate Reform Committee chaired by the President to build an organizational culture where all executives and employees can candidly talk about their
feelings and awareness across positions and sections, while also overseeing and promoting a series of reforms.)● Verification of the implementation status and effectiveness of initiatives utilizing external human resources(A series of reforms has been verified by the Board of Directors, Audit Committee, and Compliance Committee; the majority of whose members are from outside the Company.)

Kansai Electric Power Group Integrated Report 2023

6

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Message from the President

In order to recreate ourselves into a corporate group worthy of
the trust and needs of our customers and society, the entire
Group will unite to make a full-fledged commitment to reform.

Nozomu Mori
Director, Representative Executive Officer, President■ Introduction
Since the cash and gift receiving incident uncovered in 2019, theCompany has been promoting a number of initiatives, including
governance reforms under a new business management system thatincorporates external and objective perspectives. The Group, however,has faced a series of inappropriate compliance-related incidents whichhave greatly undermined the trust that customers and society haveplaced in us. These incidents include the revelation in December 2022
that the Company accessed and used information on customers who had
contracts with other retail electric power companies, and theacknowledgment by the Japan Fair Trade Commission in March 2023 that
there had been acts of the Company against the Anti-Monopoly Act.
To prevent these kinds of incidents from occurring again in the future,
we will not only enhance our education and training programs, but also
fundamentally strengthen our internal controls, while making every effort
to cultivate an organizational climate in which everyone in the Group can

Kansai Electric Power Group Integrated Report 2023

7

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Message from the President

openly discuss their thoughts and observations with one
another. The management, including myself, will take thelead in implementing these reforms and will make every
possible effort to restore the Group to be truly committed tocompliance.
At the same time, responding to changes in our businessenvironment is also an urgent task. Since 2022, the outlookof the energy market has remained uncertain due to soaring
resource prices with the situation in Ukraine and growing
uncertainty of securing resources. In this environment, theGroup will continue to take all possible measures for facility
maintenance and fuel procurement and fulfill its role ofproviding a safe and stable supply of energy to support
people’s lives and the economy. Furthermore, to achievesustainable growth of the Group, we will take up thechallenge of achieving zero carbon emissions and creating
new value and services.

■

Actions under the Medium-termManagement Plan (2021-2025)

In February 2021 we established the Kansai Electric PowerGroup Zero Carbon Vision 2050, with a view to achieving asustainable society and in order to accelerate ourdecarbonization initiatives even more. In addition, in Marchof the same year we formulated the Kansai Electric PowerGroup Medium-term Management Plan (2021–2025), a fiveyear action plan, to overcome fierce competition andachieve our sustainable growth.

Kansai Electric Power Group Integrated Report 2023

Under the plan, we continue delivering new value not
only in our core business fields of energy, transmission &distribution, information & telecommunications, and life/
business solutions, but also in wide-ranging fields around or
between these business domains. Our aim is to provide aplatform that offers various forms of infrastructure andservices, and to contribute to the realization of a moresustainable society.
In financial terms, we have set the following targets:• Minimum annual average for ordinary income of 100 billion
yen for the three fiscal years 2021–2023, and 250 billion yen
for fiscal 2025;• Free cash flows of 200 billion yen or more in the final fiscal
year of the plan, and for the five-year total to be in the black.
In fiscal 2022, the Company posted an ordinary loss andother very adverse income and expenses due to concerns
about an economic recession caused by the situation in
Ukraine and other factors, as well as increased uncertainty inthe energy market. Although the energy market remains
uncertain in the current fiscal year, we will steadily work toachieve the goals set forth in the plan. To do so, we willcontinue to strive for thorough compliance as our mostimportant management task, while vigorously promoting
the three key initiatives of seeking to achieve zero-carbon
emissions, transforming into a service provider, and building
a robust corporate constitution. By fiscal 2025, the final yearof the plan, we are determined to put our Group on a stable
growth trajectory and take the next leap forward.

■

Seeking to achieve zero-carbon
emissions: Energy Transformation (EX)With regard to the first key initiative of seeking to achievezero-carbon emissions, the Group has pledged to reduce theCO2 emissions associated with our business operations tozero by the year 2050 under our Zero Carbon Vision 2050,
and we are taking up the challenge of implementing a range
of initiatives in the dual aspects of energy supply anddemand.
Although the energy market remains uncertain due tothe recent surge in resource prices caused by the situation in
Ukraine and other factors, the importance of decarbonization
efforts has not changed in the slightest.
In Japan, the Cabinet approved the Basic Policy for the
Realization of GX (Green Transformation) in February 2023,
and the Japanese government has shown its resolve tovigorously promote efforts toward the realization of adecarbonized society. Based on our Zero Carbon Vision, we
will work toward the goal of zero carbon emissions for boththe Group and society as a whole.
We will mobilize Group resources to reduce CO2
emissions from power generation, making the most of
renewable energy for use as a primary power source andmaximizing the use of nuclear power generation, and to
reduce CO2 emissions throughout society at households andindustrial sectors through energy conservation andelectrification. By fiscal 2025, the final year of the plan, we
will achieve our goal of halving CO2 emissions from power
generation in the Group over the fiscal 2013 level, and we

8

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Message from the President

will make steady strides toward our next reduction target for
fiscal 2030.

■

Transforming into a service provider:
Value Transformation (VX)

The second key initiative, transforming into a service
provider, involves adopting a thoroughly customer-oriented
approach and addressing their needs and challenges inorder to transform ourselves into a corporate group that
continues to provide new value to our customers.
In the energy business, we will not only deliver electricity
and gas to residential and business customers, but also
create new value and services by providing services thatcombine energy with electrification devices, storage
batteries, e-mobility, etc., as well as VPP (virtual power plant)
business that effectively utilizes societal resources. We arealso developing businesses in a wide range of areas outsideof energy, including data center operations, agriculture andfood, while leveraging the strengths of our core business.
We will continue to discover business opportunities indiverse fields and will further accelerate our transformation
into a service provider by focusing our energies on creating
unprecedented and appealing value and services.

■

Building a robust corporate constitution:
Business Transformation (BX)■

Zero Carbon Vision 2050 and Zero
Carbon Roadmap

The third key initiative, building a robust corporate
constitution, is to establish a sound corporate structure in
the ongoing challenging business environment. To
accomplish this, we are reforming our cost structure,transforming our work through the use of digital technology,
and changing the way we work in all of our business activities.
In cost structure reform, in addition to working to reduce
repair costs by utilizing value analysis and other tools and to
improve the efficiency of power supply and demand
operations, we are working to strengthen our human capitalbase through investments in a digital transformation (DX)and reforms in work styles. We will continue to steadily
promote these initiatives to build a robust corporate
constitution.

In the Kansai Electric Power Group Zero Carbon Vision 2050,
we have declared that we will reduce overall CO2 emissions
that accompany our business activities to zero by the year
2050. In March 2022, the Group formulated a Zero Carbon
Roadmap clearly outlining the path to achieving this vision,and by promoting the initiatives set forth in the roadmap,
the Group aims to reduce CO2 emissions from power
generation by half (reduction of over 25 million tonnes) by

fiscal 2025 compared to fiscal 2013, and to keep our CO2
reduction rate at the industry-leading levels toward fiscal
2030.
In the area of energy supply, we have brought online allseven reactors in our nuclear power stations for nuclear
power generation, an important non-fossil energy source.
Maintaining the safe and stable operation of our nuclear
power stations, we are accelerating the development of
renewable energies in cooperation with other operators inJapan and overseas, with the goal of developing 9 GW scaleof cumulative capacity by 2040. For thermal power
generation, we are studying the feasibility of co-firing andexclusive firing of zero-carbon fuels such as hydrogen. We
are also conducting a technological evaluation of CCUS* forits future introduction, by carrying out CO2 separation andrecovery tests at the Maizuru Power Station and cooperating
in demonstration tests for CO2 marine transport.
Regarding hydrogen, which is expected to be a nextgeneration fuel for power generation, we are engaged invarious studies and demonstrations of its production,transport, and sale to customers. In the Himeji area, in orderto establish a large-scale hydrogen supply chain, we will
participate in overseas hydrogen production projects andstudy the feasibility of establishing a hydrogen receiving andstorage base, as well as discuss and coordinate with local
governments and neighboring companies with whom we
may have opportunities to work together. These efforts willfurther accelerate our consideration of hydrogen utilization,with the aim of achieving a 30% share of the national market
by 2050 in terms of volume handled.

* Carbon dioxide Capture, Utilization and Storage, where CO2 is recovered from exhausted gases, stored, and reused in fuel production, etc.

Kansai Electric Power Group Integrated Report 2023

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Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Message from the President

Moreover, the Group will contribute to reducing CO2
emissions of customers and society.
We promote electrification and energy conservation
among our customers, not only in the home, but in a wide
range of sectors, offering solutions in the use of renewableenergy sources such as corporate PPA* and battery storage,
and working to offset emissions with zero-carbon electricity
through CO2 -free menus. We are also strengthening ourefforts to electrify the mobility sector, where the use ofelectricity has been limited in the past. By working together
with customers and society, we aim to reduce CO2 emissions
by more than 7 million tonnes by fiscal 2030.
For these initiatives, we must be bold, work tenaciously,and even more than that, create epoch-making innovations.
Along with concentrating and demonstrating the Group’s
strengths, we will accelerate our initiatives toward carbon
neutrality while seeking to collaborate with all our
stakeholders, including customers, business partners, andlocal governments. As a leading company in zero-carbon
energy, we are committed to achieving a decarbonizedsociety by 2050.

■ Management philosophy in practice

become and to revise the basis of our actions and decisions
so that we can grow as a corporate group that is both trusted
and needed by our customers and society as a whole.
The new management philosophy comprises two parts:
our Purpose and our Values. The former details our Purposeof Serving and Shaping the Vital Platform for a Sustainable
Society for the benefit of our customers and society, so as tocontinue to meet customers’ and society’s current
expectations and to create those of the future. In the latter,
the Values that we hold dear are Fairness, Integrity, Inclusion,and Innovation.
In response to the series of improprieties, our Group is
now undertaking thorough measures to prevent theirrecurrence with the aim of rebuilding ourselves into a
corporate group that truly upholds compliance. In doing so,
we believe it is important that each and every member of
the Group firmly understands and practices thismanagement philosophy in their daily work.
Our management philosophy serves as a compass forcompliance with laws and regulations, rules, social norms,
and social conventions. In order to ensure that everyone in
our Group puts this philosophy into practice in their own
work, I myself and the management will take the lead intenaciously promoting the philosophy throughout theGroup.

■ Conclusion
Since our establishment in 1951, the Group has surmounted
many challenges by leveraging our greatest strength: unityand solidarity. In response to the series of improprieties, theGroup will make a collective effort to reform and reclaim our
status as a corporate group that is both trusted and neededby our customers and society. In order to achieve sustainablegrowth in an increasingly challenging business environment,
we are determined to become a corporate group that gives
the opportunity to every one of our 30,000 employees todemonstrate their abilities to the fullest and to work withenthusiasm.
We are committed to doing our very best to live up to the
expectations of our stakeholders, and we appreciate yourcontinued and invaluable understanding and support for us.

Taking into account such factors as the cash/gift receiving
incident, we renewed our management philosophy in March
2021. We recognized the need to return to what we aspire to* Power Purchase Agreements or PPA, long-term power purchase agreements that are concluded directly with power generators by companies and other entities that consume electricity.

Kansai Electric Power Group Integrated Report 2023

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Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

The Business of Kansai Electric Power in Figures
Energy business
Fuel procurement

Sales

16

Operating revenues:

Number of
procurement
source countries:
・FY 2022 results¥

countries

Purchasing record of fuel for thermal power generation

・FY 2022 results

million tonnes

3,158.8billionPower sources:

111.6
・As of March 31, 2023

Composition of power sources(supply and demand
record by source)

Liquefied
Natural Gas
(LNG)
66%

28.654billion kWh

Pumped storage 2%

・FY 2022 results

Hydroelectric
14%
Nuclear 31%

Petroleum 5%
Indonesia
4%
U.S.
7%

South Africa 2%

Kansai Electric
Power
Energy sourcecomposition

Other 13%China 2%Indonesia 7%

Malaysia 8%
Australia 84%

U.S. 8%Kansai Electric Power Group Integrated Report 2023

1.53

million tonnes

Australia
54%

Liquefied Natural Gas
(LNG)
36%

GW

Number of power plants:

・As of March 31, 2023

167

power plants

Capacity of power-generating facilities(breakdown by power source) ・As of March 31, 2023
Thermal power

13.816 GW(9 power plants)

Hydroelectric power

8.248 GW

(152 power plants)

Nuclear power

6.578 GW

(3 power plants)

Solar power

0.011 GW

(3 power plants)

・Our company’s power-generating facilities only・Figures may not add up due to rounding off.

Renewable energy development status ・As of May 31, 2023

Coal 12%Solar

0.190 GW

Onshore and offshore wind0.061 GW

Hydroelectric power

3.409 GW

Biomass

0.257 GW

Geothermal

Qatar 10%
Totals: LNG equivalent・The subtotals and totals might not match due to rounding off.

billion kWh

Capacity of power-generating facilities:

・FY 2022 results (Value at transmission end)・Generated by our company

85.4

Total forKansai Electric
Power

8.069

Gas sales volume:・FY 2022 results
・LNG equivalent (gas and LNG total)

・FY 2022 results

Power generation

Other (Heavy oil, LPG, etc.)
10%

Crude oil 2%

Coal
21%

Retail electricity sales volume:・FY 2022 results

・Power generated by our company facilities
・Figures may not add up due to rounding off.

46 kW

・Figures are the total for the Company’s share (according to the investment ratio) ofprojects, including those in operation, planning, and withdrawal stages.
・Figures may not add up due to rounding off.

11

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

The Business of Kansai Electric Power in Figures
Overseas energy business
Overseas power
generation:
・As of June 30, 2023

22

projects inTransmission and distribution business(Kansai Transmission and Distribution, Inc. has been undertaking power transmission and distribution since April 1, 2020.)

11

countries

Transmission and distribution
Length of transmission lines (route length):

Capacity of overseas
power-generating facilities(Our company’s investment ratio):・As of June 30, 2023

Breakdown:

2.852

・As of March 31, 2023

GW

Hokuriku
area

18,781Shin-Ayabekm

OkawachiSeibanLength of distribution lines (route length):・As of March 31, 2023

133,309km

Number of group companies:

・FY 2022 results¥

Shikamako

Shikokuarea

・As of May 31, 2023
・Consolidated subsidiaries and affiliates accounted
for by the equity method

External sales in groupbusinesses:

Himeji

Hokusetsu
Shin-Kakogawa
Koto
Keihoku
Minami
Nose
Inagawa
Himeji
Nishi Kobe Takarazuka
Himeji No. 1
Nishi Kyoto
Toban
Ritto
Takasago
Kobe
Konan
Itami
Kita Osaka
Sannomiya
Nishi Osaka
Kisenyama
Koka
Yodogawa
Kita
Shin-Kobe Toyonaka
Shimohozumi
Ozone
RakunanHigashiomi
Shin-Neyagawa
Seidan
Hirakata
Semboku
Minami Kyoto
HigashiMinami
KawachiTanagawa
Osaka Shin-Ikoma
Minami Osaka

Minami Ako

Group businesses

SennanKinokawa

Number of substations:・As of March 31, 2023 ・Includes conversion stations

billion956

ReinanOkutataragi

Yamasaki

Thermal power: 1.764 GW Renewable energy: 1.088 GW

99
713.4

To Johana

Chugoku
area

Shigi

Chubu
area

Higashi Yamato

KihokuGobo

Transmission lines
Conversion Power
Substation Switchingstationplant
station500 kV 275 kV 187 kV
Kansai area

Kansai Electric Power Group Integrated Report 2023

To Seki

Kitakatsuragi

Kainanko±250 kV direct current
transmission line

Kongo

To Miboro

Facilities of other companies

12Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Financial and Nonfinancial Highlights
Operating revenues / Operating income
Operating revenues

Operating income(billions of yen)
4,500

(billions of yen)600

Net income attributable to shareholdersof the parent

ROE, ROA(billions of yen)
200

(%)
15.0

ROE

ROA

3,951.8
3,000

3,307.6

3,184.2

3,092.3150
400

2,851.8

100

206.9

204.8

1,500

145.7

200

99.3
-52.0

0
2019/32020/32021/32022/3

5.0

200

203.6

0

0
2019/38,000

2020/3

4,000

100

2,000

-6.6

0
2019/32021/32023/32022/32020/32021/3Kansai Electric Power Group Integrated Report 2023

2022/32023/3

3.2

0

2.2

1.9

2021/32022/3

Net assets

Equity ratio

7,257.3

8,075.7

8,656.4

1,532.9

21.0

1,641.7

20.9

1,725.5

2020/3

Net income per share

FCF

8,774.4

40

(yen)
200

2023/320.4

201,705.5

1,839.7

10-88.1-113.9-122.3-291.5-289.82023/3
2019/32020/32021/32022/30PER128.8350

10145.558.27

8122.02
96.14

65.17
50.00

50.00

50.00

50.00

50.00

0.96

0.67

0.64

0.62 19.81 0.64

2019/32020/32021/30

PBR(times)
12

11.95
9.82

100

19.2

Cash dividend per share

12.67

150

30
20.9

0.2
2019/3(%)
50
7,612.7

1.0

Net income per share / Cash dividend per share

6,000

135.9

3.3

0

(billions of yen)
10,000

153.8

5.1

17.6

Total assets

211.5

6.6

85.8

Total assets, Net assets, Equity ratio(billions of yen)
300

8.3

7.8

108.9

50

2023/3

Ordinary income

10.0

130.0

115.0

2022/36
4
2
02023/313

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Financial and Nonfinancial Highlights
Number and ratio of female senior managers and managers*

Group’s* CO2 emissions and CO2 emission factors
associated with power generation in Japan
CO2 emissions by the Group’s power
generation in Japan (million t-CO2)

2019/3

100

112

50

1.8

956

873

0.6

2020/3483730.4
2021/3

Number of female hires(People)
60

0.283

0.266

41
28.5

49
24.7

25.4

50

30

2023/32022/3

Gas sales volume • LNG equivalent (gas and LNG total)

156

139

1,178 121 1,130
1,000

1,023

1,007

153
1,116

(10,000 t)
150

10
0

100

Office

39
23
9

28

Technical

Female ratio

53

51

47 34

49

Office

49
35

10

11

(10,000 kW)
500

02019/32020/32021/32022/32023/3

1.80

1.0

0

0.69
0.42
2019

2.06

0.84
0.49

0.69

0.28

0.29

2021

2022

0.28
2020

14

20

0

23/4

414.17424.63300*1 The number of casualties with at least one day of absence from work due to occupational
accidents per million total working hours, which indicates the frequency of accidents.
*2 Average values of our three representative group companies undertaking major
construction projects have been adopted.

Annual duration of power outage per household(minutes)
400

397

20

200
10

Result of
TyphoonNo. 2168

7

72021/32022/32023/30
2019/32020/32021/32022/32023/30
2019/3Kansai Electric Power Group Integrated Report 2023

2.09

1.95

1.5

40

100
0

2.0

50

43

478
388.5

Kansai Electric Power Co., Inc. and Kansai Transmission
and Distribution, Inc.

(%)
2.5

0.5

10

22/4
21/4
19/4
20/4
(Based on fixed term employment for each fiscal year)

372.4

Group companies*2

30

23
8

46

Average among all national industries

Technical(%)
60

Accumulated capacity of renewable energy source facilities(completed) projects that have started operation

400

50

500

18

20

Electricity sales volume / Gas sales volume

157

42

40

(Fiscal 2022 figures do not include power generation by companies in which the Company
has a stake of less than 50%.)

Electricity sales volume0

Number and ratio of female hires

0.334

Accident frequency rate*1 trend

1.2

64

59

52

47

3.0
2.4

166

151

136

130
39

2.7

2.4

2.1

22/3
23/3
21/3
19/3
20/3
(Figures from fiscal year ends)* Figures for the Kansai Electric Power Co., Inc. combined with Kansai Transmission
and Distribution, Inc.
* Managers refer to those equivalents to unit chief or higher.

* Figures for the Group’s power generation in Japan are multiplied by the Company’s stake.

(100 million kWh)
1,500

1.9

1.6

150

2.6

2.4

200 2.1

CO2 emission reduction rates of the Group’s
power generation business in Japan (%)(compared to FY 2013)

907

0.287

37
30.4

250

(%)
3.6

3.2

2.9

0

994

0.287

Ratio of female managers
Ratio of female senior managers(People)300

Power generated by the Group’s power
generation business in Japan (100 million kWh)

CO2 emission factor of the Group’s power
generation business in Japan (kg-CO2/kWh)

1,060

Number of female managers
Number of female senior managers

2020/314

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

History of Value Creation
In 1951, the restructuring of electric power in Japan resulted in the Kansai Electric Power Company emerging as one ofthe private companies that integrated both the generation and distribution of electricity. At the time the country was
still recovering from the war, and thus the Company as an enterprise launched while facing several challenges,
including the tight supply and demand of electricity and an uneven operating balance, as well as an unstable situation
regarding the relationship between labor and management. However, by marking milestones such as the constructionof the Kurobegawa No. 4 Power Station and the introduction of nuclear power stations, the Company was robust

Changes in society

enough to come through and endure difficult challenges such as the two oil crises and the Great Hanshin-Awaji
Earthquake to still be here today.
Since 2000, the liberalization of the electrical power sector has led to increased competition, and the environment
in which the Company does business has seen radical changes. In order to continue to serve our customers andcommunities, we have evolved into a corporate group that has branched out beyond the energy sector to provide awide range of social infrastructure and services that support both industrial activities and people’s lives.

1954

1973/1979

1985

Rapid economic growth and dramaticincrease in the demand for electrical power

Oil crisis

Liberalization of
Bursting of thetelecommunications bubble economy

1990

1995
The Great Hanshin-Awaji
Earthquake

Changes to Kansai Electric Power1951
The Kansai Electric Power
Company established

1957
Kanden Sangyo (currently
Kanden Realty & Development
Co., Ltd.) established1963
Kurobegawa No. 4 Power
Station (known as Kuroyon)
completed

1970
Mihama Nuclear Power
Station Unit 1 commenced
operations

1984
Awarded the Deming Prizeas the first in the powerindustry

1995
Recovery efforts following
the Great Hanshin-Awaji
Earthquake

1998
Joined the San Roque
Project

1998
An in-house Entrepreneurship
Challenge System created

The Company was establishedfollowing the restructuring of
the electrical power business.

Kanden Sangyo was establishedto develop business mainly
related to the management ofreal estate.

Completion of a challenging construction
project that spanned seven years. The
Company began to contribute to thegrowth of the Japanese economy
through the provision of electrical power.

This Japan’s first commercial PWR
succeeded in trial electricity
transmission to the Expo site.

Recognized that the Company
has successfully improved its
performance through theapplication of quality control.

Approx. 2.6 million homes lost
power. Every single employee at
the Company worked together
toward the rapid restoration of
the power supply to these homes.

The Company became the firstJapanese power company toparticipate in an overseas power
generation business, collaborating
on-site with the construction work.

Based on entries to the first roundof the System, the first venture
enterprise was established in 2000:
Kanden-EL-Farm, Inc.

Operating revenues

4,000,000

1995

3,500,000
3,000,000

1984

2,500,000

Awarded theDeming Prize

1985
Established Osaka Media Port
Co., Ltd. and entered
telecommunications market

1998

2,000,000
1,500,000
1,000,000
500,000
0(millions of yen)Completed transmission of
emergency power supply
153 hours after the Great
Hanshin-Awaji Earthquake

1970

1951
The Kansai
Electric Power
Company
established1951

Kansai Electric Power Group Integrated Report 2023

Participated in the
San Roque Project

1963
Kurobegawa No. 4
Power Station completed

1960

Mihama Nuclear
Power Station Unit 1
commenced operations

1970

1980

1990

15

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

History of Value Creation
Strengths cultivated by the Kansai Electric Power Group
01 Zero-carbon power sources

02 Problem-solving power

03 Comprehensive strengths of our Group04 Responding to digitalization• Top spot for the amount of zero-carbon power generationin Japan• Know-how related to the design, maintenance andoperation of facilities for nuclear power generation andrenewable energy• Engineering capabilities built on the group business• Expertise and know-how in energy management• Customer base other than electricity sales through a wide
range of group businesses• Expertise and know-how built on the group business• Active introduction of cutting-edge IT infrastructures andIT technologies• Expertise and know-how regarding digital technologies

2000

2011

2016

2020

The Great East Japan
Earthquake

Full liberalization ofelectricity retail markets

Legal separation of powertransmission anddistribution business

Make withzero CO2

Use withzero CO2

Kansai Electric Power Group
Zero Carbon Vision 2050

2000
Entered the gas supply
business

2001
Launch of eo Optical Net

2011
Mega Solar Sakai Power
Station commenced
commercial operations

2012
Kanden Energy Solution Co., Inc.
expanded its business to theTokyo Metropolitan district

Launch of a gas businessincluding sales of Liquefied
Natural Gas (LNG)

Started providing internet
services utilizing a proprietaryfiber-optic network.

Became the first Japanesecompany to operate thelarge-scale solar power station.

Established a Tokyo Office andConstruction started at what thebegan supplying the district with Company called the Second
electric power service in 2014.
Kuroyon Dam Project for Laos—the
Nam Ngiep Hydropower Project.

2018
K4 Digital Co., Ltd.
established

2021
Zero Carbon Vision 2050
formulated

A new mobile service thatenables low-cost usage of
LTE/mobile phonefunctionality/handsets

K4 Digital was established to leverage
digital technologies capable ofcreating new businesses andchanging the business.

Declared the Group’s intent toachieve zero CO emissions in
power generation and otherbusiness activities by 2050.

Launched eo Optical Net

2011
Mega Solar Sakai Power
Station commenced
commercial operations

Construction began at the Nam Ngiep
Hydropower Project / Launched themineo mobile phone service

3,000,000
Transition to a company with a Nominating
Committee, etc. / Kansai Transmission andDistribution Inc. took over the powertransmission and distribution business

Kansai Electric Power Group Integrated Report 2023

2,500,000
2,000,000
1,500,000

2019

2010

3,500,000

2020

Cash/gift-receiving
problem revealed

2000

4,000,000

Established K4 Digital Co., Ltd. /Selected as a Competitive IT Strategy Company

2014
2001

Operating revenues

2018

Kanden Energy Solution Co., Inc.
expanded its business to theTokyo Metropolitan district

Accident with the supply
pipe at Mihama Nuclear
Power Station Unit 3Entered the gas
business / Established
Kanden-EL-Farm, Inc.

2014
Launch of the mineo mobile
phone service

2012

2004

2000

2014
Construction at Nam Ngiep
begun

2022
Violation of the Antimonopoly Act
and breach of the Electricity Business
Act due to improper handling of
information on PPS customers

2020

1,000,000
500,000
0(millions of yen)16

Kansai Electric Power Group Overview

SpecialFeature2

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Bolstering Our Strengths

The Kansai Electric Power Group, as a lifeline provider, has been creating newvalues in a variety of areas including the electricity business while taking on
new challenges to contribute to the growth of Japanese society by leveraging
its “strength,” which originates from over 70 years of operations.

01 Nuclear power’s contribution as a zero-carbon power source

Zero-carbon power sources

01 As a leading company in zero-carbon energy, we have been striving to increaseenergy independence to secure stable supply of energy with a priority given tosafety in an effort to create a sustainable society.

Problem-solving power

02 We have been offering multiple solutions to provide new values, promoting
electrification and addressing various challenges and the needs of customers.

Comprehensive strengths of our Group

03 We have been providing solution services by leveraging the collective strengthsof our group companies, with particular emphasis on our business domains ofenergy, transmission and distribution, information and telecommunications, andlife/business solutions.

Responding to digitalization

04 We have been pursuing DX, primarily capitalizing on digital technology derived
from our electricity business, as DX is a key to achieving the Medium-termManagement Plan.
Click below to see our strengths:
https://www.kepco.co.jp/english/corporate/list/report/pdf/ar2022_e_07.pdf

Kansai Electric Power Group Integrated Report 2023

The output of Ohi Nuclear Power Station Units 1-4 reached 900 billion kWh on July 1, 2023, for the
first time since Unit 1 went into commercial operation back in 1979. This has never been achieved
before by a pressurized water reactor (PWR). The cumulative output of Mihama Nuclear Power
Station Units 1-3 and that of Takahama Nuclear Power Station Units 1-4 stand at about 359 billion
kWh and 778 billion kWh, respectively. With the three power stations combined, it brings total
output to about 2,039 billion kWh (as of the end of July 2023). We will continue to promote zerocarbon electricity at home and abroad by operating nuclear power stations in a safe, stablemanner.

Further expanding the possibility of nuclear power
The Group’s nuclear power initiatives involve “improving the operation of nuclear power plants,”“installation, expansion and replacement,” and “hydrogen production using nuclear power,” alldesigned to achieve the Zero Carbon Vision 2050, with safety ensured.
●

Improving the operation of nuclear power plants

Efforts are underway to operate our nuclear power plants more efficiently to stabilize power
supplies and reduce CO2 emissions.

17

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Bolstering Our Strength
Specifically, we participate in a working group of the Atomic Energy Association (ATENA),
engaging in dialogues with the Nuclear Regulation Authority to shift to a flexible operating cycle
where the current maximum 13-month cycle is extended to a 15-month cycle. In addition,
periodic inspection procedures and periods are compared with those of other nuclear power
plants (in Japan and the U.S.) for streamlining processes, with discussions underway to optimize
overall operations.
●

Installation, expansion and replacement

Discussions with plant manufacturers are underway to design next-generation light-water
reactors that outperform existing reactors in safety and cost efficiency to improve Japan’s energy
security and decarbonization.
●

Hydrogen production using nuclear energy

We will extract the full potential of nuclear energy,
which constantly produces a massive amount of zerocarbon electricity to use the electricity and heat it
produces for hydrogen production in the future.

Example of recent activity

Fuel-cell vehicles

Electricity derived
from nuclear energy
Nuclear power generation

01

Clean hydrogen
derived from
nuclear energy

Hydrogen production

Curdle (cylinders)*1	FEED: Front End Engineering Design. Refers to the basic design (including
Clean hydrogen production is being demonstrated
in Tsuruga City, using electricity derived from nuclear
energy that emits no CO2 for the first time in Japan.

studies related to commercial, financial, and contractual matters) to be
conducted upon completion of conceptual designs and feasibility studies.
*2	E xchange rate of AUD 1 = JPY 90

Hydrogen use

Designing the infrastructure base for a large-scale hydrogen
supply chain

On May 29, 2023 the Company announced that it entered into an agreement with Iwatani
Corporation, Marubeni Corporation, Stanwell Corporation Limited, and Keppel Infrastructure
Holdings Pte. Ltd. on FEED*1 of the Central Queensland Hydrogen (CQ-H2) Project in the
Gladstone Region, Queensland, Australia, where green hydrogen derived from renewable energy
will be largely produced and liquefied for export to Japan as well as supplied to an ammonia

Kansai Electric Power Group Integrated Report 2023

production facility in the Gladstone Region. This project is the first of its kind, where theCompany’s hydrogen production business participates in FEED outside Japan, involving what
may be one of the largest scale of green liquefied hydrogen production in the world.
Extensive feasibility studies will be conducted to make the final decision on investment inphased-in production and distribution of liquefied hydrogen, which will start in around 2030.
The liquefied hydrogen will be supplied to the Company’s thermal power stations in the Himeji
area and to users nearby.
The Company and three of the participated companies (Iwatani, Marubeni and Stanwell
Corporations) have been conducting feasibility studies since 2021 on large-scale production ofgreen liquefied hydrogen and their export to Japan. With Keppel on board, who is a potential
green hydrogen user, we the five companies will jointly work on the FEED, which involves a total
investment of 117 million Australian dollars (about 10.53 billion yen*2), a sizable amountcompared with a total of about six million Australian dollars (about 540 million yen*2) invested inprevious feasibility studies.
Each of us, committed to being a pioneer inbuilding a large-scale hydrogen/ammonia supply
chain advocated by the governments of Japan,
Australia, and Singapore, will leverage this project tohelp realize a carbon neutral world.

CQ-H2 Project overview

Water
Renewable
power source

Queensland
Australia

Hydrogenproduction
facilities

Hydrogenstoragefacilities

Pipeline

Hydrogenliquefaction
facilities

18

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Bolstering Our Strength

02 03 New company starts commercial operation of distributed energy resources
E-Flow LLC, which specializes in operation of distributed energy resources (DERs), was established in April 2023 to leverage the experience and expertise derived fromour Virtual Power Plant (VPP) business.
Taking over the VPP business of the Kansai Electric Power Company, E-Flow is committed to optimizing operation of customers’ DERs and maximizing their electric
values through its VPP, grid storage battery, and renewable energy aggregation businesses, which are expected to grow as we transition to a zero-carbon society.
E-Flow also offers services based on the distributed service platform “K-VIPs+,” which is equipped with an optimized operation AI incorporating cumulative
operational expertise and market transaction data to improve its earnings. Incorporated into the grid storage battery and renewable energy aggregation businesses inthe second half of fiscal 2023, this platform system will be expanded to other resources such as EVs and hydrogen production equipment.

Business objective

Business overview

E-Flow serves as a service infrastructure that connects various resources interactively anddelivers energy to the necessary locations, creating new value beyond the conventional
electricity business boundaries together with our customers.

E-Flow is the first company in Japan specialized in harnessing the value of electricity derived fromvarious distributed resources spread across the country. Through its distributed service platform, it
contributes to achieving the goal of zero-carbon emissions and stabilizing power supply and demand.
Whole sale
electricity market

April 2023

Supply and demand
adjustment market

Capacity*1market PPA To “monetize”
throughtransactions

Establishment of
a new company!

Datautilization

To intelligently“combine” resourcesAI
diagnosis
Optimalcontrol

Distributed Service Platform

Operation
management

Renewable energy Grid storage battery
Decentralization of energy resources
Large-scale power generation
Stable and efficient supply throughlarge-scale power generation

To “transfer” resources
between each other

Operatingdata

Supply-demand
data

Forecast
data

Transactiondata

We aim toachieve a revenue of
30 billion yen by utilizing
various distributed energy
resources with a market
trading volume of
2.5 million kW byfiscal 2030.

Customer facilities

VPP*2 Business

Grid Storage Battery Business

Renewable Energy
Aggregation Business*1 PPA: Power Purchase Agreement *2 VPP: Virtual Power Plant

Making inroads to the storage station business
The Company will have a stake in one of the largest storage stations in Japan (48 MW / 113 MWh) and E-Flow will be in charge of its operation. With this business, we willcontribute to stabilization of electricity supply and demand and further introduction of renewable energy.

Kansai Electric Power Group Integrated Report 2023

19

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Bolstering Our Strength

03 04 Investing one trillion yen in hyper-scale data center businessWe established CyrusOne KEP, Inc., a 50-50 joint venture with the US data center developer and operator CyrusOne, in May 2023. CyrusOne KEP, Inc. will develop andoperate hyper-scale data centers (HSDCs)*1, with investments of more than one trillion yen over the next 10 years or so, aiming for a total storage capacity*2 of 900 MW.
Utilizing both companies’ strengths: the Kansai Electric Power Group, which has developed its variety of businesses such as energy, real estate, information andtelecommunications, and CyrusOne, which has accumulated advanced expertise in sales, design, development, and operation of HSDC business, this venture company
will provide cloud service providers with the world’s highest quality digital infrastructure services, facilitating improvement in social and digital infrastructures.

Competitive strength●●●

Competitive strength

Sales capabilities targeting mega cloud service providers
Expertise in design and construction of data centers that meetthe needs of customers
Proven track records in advanced operation, etc.

●
●

●

●

Expertise in electricity supply
Acquisition, development, andmanagement of real estate
Expertise in data center
operation
Optical fiber network spanning
the Kansai area, etc.

Leveraging the two companies’ strengths
CyrusOne KEP, Inc. plans firstly to develop its business in the Tokyo metropolitan area and the Kansai area; its construction site for the first project has been secured in
the Kansai area, where it is preparing to start construction as early as possible.
*1:	E xtremely large data centers that are designed for mega cloud service providers to process a massive amount of data
*2:	Indicator that represents the size of data centers

Kansai Electric Power Group Integrated Report 2023

20

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Value Creation Process for the Kansai Electric Power Group
Based on accurately understanding global social issues and environmental changes, by utilizing the strengths that we have cultivated and delivering new value, our Group willcontinuously serve our customers and communities as the operator of a platform providing various social infrastructures and services.
Recognition of external environment

INPUT

Business activities

Changes to the businessenvironment

Strengths• Intensified business competition
due to liberalization• Growing uncertainty in energy
markets due to changes ininternational affairs andexchange rate fluctuations• Further accelerating trend
toward decarbonization• New market creation in powersystem reform

Zero-carbon powersourcesComprehensive
strengths of our Group

Problem-solving
power

Responding todigitalization• Increasing importance ofdeveloping digital infrastructurethat supports DX• Changes to the needs ofcorporations due to labor
shortages; progress of workstyleinnovation, etc.

As of March 31, 2023

● Ordinary profits ...................... -6.6 billion yen

Social issues• Global warming• Natural disasters• Exhaustion of natural resources• Secure a stable supply of energy• Respond to infectious diseases• Depopulation, decreasing
birthrate and aging population• Low economic growth● Number of employees● ROA ............................................................................ 0.2%

Manufacturing CapitalSocial Capital● Business offices

Kansai Electric Power Co., Inc. ............... 223
Kansai Transmission andDistribution, Inc. ............................................ 1,103● Group companies ................................................. 99(As of June 30, 2023)● Power facilities...................................... 167 locations / 28.65 GW● Power transmission and distribution
facilities

Intellectual Capital● Safe and stable supply, technicalprowess and know-how to ensure
quality● AI technology, big data

Kansai Electric Power Group Integrated Report 2023

HR Capital(consolidated) .............................................. 31,628● Promotion of diversity● Innovation/digital human resources● Equity ratio ....................................................... 20.4%

EX

Seeking to achievezero-carbon emissions

VX

Transforming into a
service provider

BX

Building a robust
corporate constitution

Energy Transformation

Management Capital
Financial Capital

KX

KandenTransformation● Relationship of trust with our customers● Customer base through groupbusinesses● Firm connections with communities in

Kansai● Collaborative relationship with our

suppliers

Natural Capital

Value Transformation

Business Transformation

Firmly establishing governance and promoting compliance● Fuel for power generation● Water for power generation

大切にする価値観 Values

公正 × 誠実 × 共感× 挑戦
Fairness

Integrity

Inclusion

Innovation21

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Value Creation Process for the Kansai Electric Power GroupOUTCOME
2030

EnergyBusiness●Zero-carbon energy●

Energy service solutions

Solving SDGs and other social issues

存在意義
Purpose2050

Achieving a zero-carbon society

Use withzero CO

Make withzero CO

Zero Carbon Vision 2050

Transmission
andDistribution
Business●

Wheeling service●

Next-generation
network●

Information andtelecommunications
infrastructures andservices

Information andTelecommunications
Business●

DX solutions

2025

Serving our customers and communities continuously
as the operator of a platform providing various social
infrastructures and services
Management Capital
Financial CapitalIntellectual CapitalSocial Capital● Ordinary profits ... 250 billion yen or more

● New technologies to realize zero carbon● Providing new value while meticulously● Equity ratio ...................................... 23% or more

● Invest in the promotion of R&D and● FCF ................................. 200 billion yen or more
● ROA ....................................................... 3.5% or more

Manufacturing Capital

Real estate● Establishment of a seven-nuclear reactor●

Lifestyle support services● Making renewable energy a main power●

Healthcare●

Business solutions●

Life / Business
Solution
Business

Kansai Electric Power Group Integrated Report 2023

What we aspire to become

system and sophisticated operations

source............. 5 GW of new development inJapan............. 9 GW of cumulative development(by 2040)(SMRs, CCUS, hydrogen utilization, etc.)
innovations to contribute to theresolution of social issues

HR Capital● Ratios of female managers andfemale senior managers............. Increase to more than threefold
those of FY 2018 by the end of
FY 2030● Ratio of females in recruitment............. Office staff 40% or more, technicalstaff 10% or more
● Development of innovation and digital
human capitalmeeting increasing and diversifying
customer needs● Deepening bilateral communication

with stakeholders

Natural Capital﹁ あ た り ま え ﹂を 守 り︑創 る

OUTPUT● Keep the top spot for the amount ofzero-carbon power generation in Japan● CO emissions associated with power

generation............. to be halved in FY 2025
(compared to FY 2013)

Serving and Shaping
the Vital Platform
for a Sustainable Society

22

Kansai Electric Power Group Overview

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Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Medium-term Management Plan

Kansai Electric Power Group Medium-term Management Plan (2021−2025)

KX

KandenTransformation

EX

Energy Transformation

VX

Value Transformation

BX

Business Transformation■ What we aspire to become
With Energy, Transmission & Distribution, Information & Telecommunications, and Life/Business
Solution positioned as our core businesses, we will keep creating new value in areas around these
sectors as well as where they overlap.
As the operator of a platform providing various social infrastructures and services, we aim tocontinuously serve our customers and communities, while contributing to attaining a sustainable
society.

Life/Business
Solution

Information &Telecommunications

New sectors
Transmission &Distribution
EnergyPromote innovation anddigitalization in eachbusiness sector

Kansai Electric Power Group Integrated Report 2023

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Kansai Electric Power Group Overview

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Medium-term Management Plan

■ Key initiatives■ Financial goals■ Basic premise of our business operations

Over three fiscal years from 2021 to 2023, we will complete business structural reforms while
anticipating a decline in profits. We will make investment in growth opportunities as well as
construction work to ensure nuclear safety for the future. In fiscal 2025, we will put our businesson a growth track and take another leap forward.

Firmly establishing governance andpromoting compliance
We will do our utmost to restore trust, in light of our reflection
on the receipt of cash/gifts and other issues.
■ Key initiatives

Ordinary Income

KX：Kanden Transformation

FCF

FY 2021−2023

FY 2025

More than 100 billion yen
averaged over three years

More than 250 billion yen

Less than -50 billion yen
averaged over three years

More than 200 billion yen

Register a surplus across total income booked between FY 2021 and FY 2025
Equity Ratio
ROA*

1

2

Seeking to achieve zero-carbon
emissions
EX: Energy Transformation

Transforming into a service
providerVX: Value Transformation

With the accelerating global trend of decarbonization,
to meet expectations for contributing to theattainment of a sustainable society, we will promote
efforts toward the realization of the Kansai ElectricPower Group’s Zero Carbon Vision 2050.
Beyond our conventional large-scale asset-centeredbusiness, we will deal with needs and issues basedon the customer’s viewpoint, thereby being reborn
as a corporate group that continuously provides newvalue to its customers.

More than 20%

More than 23%

More than 1.5%
averaged over three years

More than 3.5%

*ROA [Return on total assets] = Operating income [Ordinary income + Interest expense] / Total assets [Beginning and ending balance average]

More than

250 billion yen

More than

200 billion yen
More than

100 billion yen
on averageLess than-50 billion yen

3

Building a robust corporate
constitution
BX: Business Transformation

Kansai Electric Power Group Integrated Report 2023

on average

We will speed up cost structure reform, innovation,
digitalization and workstyle innovation.

Ordinary
Income

FCF

Ordinary
IncomeFCF[Reference] ROE (Return on equity = Net income / Shareholders’ equity [Beginning and ending balance average]) when the above goals areachieved: about 4% for FY 2021-2023, about 10% for FY 2025

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Kansai Electric Power Group Overview

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Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Medium-term Management Plan

Fiscal 2023
Plan

In May 2023, the Group formulated the Kansai Electric Power Group Fiscal
2023 Plan based on the progress status of the Kansai Electric Power Group
Medium-term Management Plan (2021-2025) and business environment
recognition.

■ Positioning of the Kansai Electric Power Group Fiscal 2023 Plan
Medium-term Management Plan (2021-2025)

Seeking to achievezero-carbon emissions

Key initiatives

Progress status of
the Medium-termManagement Plan

EX: Energy Transformation■ Progress status of the Medium-term Management Plan
In fiscal 2022, we made steady efforts in line with the three key initiatives set forth in theMedium-term Management Plan: EX, VX, and BX. Meanwhile, inappropriate incidents occurredin relation to “Firmly establishing governance and promoting compliance,” the basic premise of
the Medium-term Management Plan.
FY 2022

Basic
premiseEX• Inappropriate incidents occurred in relation
to “Firmly establishing governance andpromoting compliance,” the basic premiseof the Medium-term Management Plan.
• Commenced operation of the Specialized
Safety Facility at Mihama Unit 3 and Ohi
Units 3 and 4, and restarted these units• Invested in zero-carbon power sources inJapan and overseas.
Investment
results

Transforming into a
service provider

VX：Value Transformation

Building a robust
corporate constitution

BX：Business Transformation

VX

FY 2025

238 billion yen• Cut CO2 in half *
Investment

1,050 billion yen(Cumulative target amount for
FY 2021-2025)(Cumulative total FY 2021-2022:
456 billion yen)

• Invested in grid storage battery business,
EMS* in Japan and overseas, and data center
business.
Investment
results• Reform organizational
climate to be fundamentallypremised on compliance28 billion yen

Investment

120 billion yen(Cumulative target amount for
FY 2021-2025)(Cumulative total FY 2021-2022:
39 billion yen)

Kansai Electric Power Group Fiscal 2023 Plan

Business environment
recognition

BX• Reduced repair costs by utilizing value
analysis (VA)* and raised the efficiency of
supply-demand balancing
Cost reduction achieved

78 billion yen*

Costreduction

90 billion yen*

(Single-year target amount for FY 2025)*1: CO emissions from power generation (compared to FY 2013) *2: Energy Management System*3: Capital investments, etc., were closely examined from every perspective of the value chain in collaboration with operating divisions from theplanning stage.
*4: Cost reductions from the planned value at the time of formulating the Medium-term Management Plan

Kansai Electric Power Group Integrated Report 2023

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Kansai Electric Power Group Overview

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Foundation to Support Value Creation

Financial and Corporate Information

Medium-term Management Plan

■ Progress status of the Medium-term Management Plan
All of our financial targets for fiscal years 2021 through 2023 set in the Medium-term Management Plan are expected to be achieved. In particular, FCF, which has been in negative territory
in most recent years, is likely to turn positive in fiscal 2023.
We seek to strike a balance between restoring our financial soundness through interest-bearing debt reduction and making investments that will open the way to the future, hoping tomeet the expectations of our shareholders by achieving sustainable growth.

Financial goals[Medium-term Management Plan (2021−2025)]
FY 2021 (results)

FY 2022 (results) FY 2023 (forecast)

FY 2021−2023
FY 2021−2023

Ordinary
Income135.9 billion yen-6.6 billion yen

425.0 billion yen

184.8 billion yen

More than 100 billion yen
averaged over three years

Less than -50 billion yen
FCF-122.3 billion yen-289.8 billion yen

Approx.
280 billion yen

Approx.
-44.0 billion yen

Equity Ratio

19.2%

20.4%

Approx. 23%

Approx. 23%

ROA*

1.9%

0.2%

Approx. 5.1%

Approx. 2.4%

averaged over three years

FY 2025
More than 250 billion yen

More than 200 billion yen

Register a surplus across total income booked
between FY 2021 and FY 2025
More than 20%
More than 1.5%
averaged over three years

More than 23%
More than 3.5%

* ROA [Return on total assets] = Operating income [Ordinary income + Interest expense] / Total assets [Beginning and ending balance average]

Kansai Electric Power Group Integrated Report 2023

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Kansai Electric Power Group Overview

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Financial and Corporate Information

Medium-term Management Plan

■ Business environment recognition
In view of the occurrence of multiple inappropriate
compliance-related incidents, it is essential for the Group to
again work together as one to reform its organizational climate
to be fundamentally premised on compliance.
In order to reduce revenue fluctuation risks such as surges
in fuel prices, which we cannot control, we will steadily
implement the measures set forth in our Medium-termManagement Plan and annual plans, with safety as the top
priority.

At the time of formulation of the Mediumterm Management Plan (March 2021)●

Accelerating trend toward decarbonization(2050 Carbon Neutral Declaration)●

COVID-19-triggered acceleration of DX●

Sluggish demand●

Falling crude oil prices●

Massive introduction of renewable energy●

Decline in electricity trading prices

Society

Energybusiness

Current business environment (May 2023)●

While fuel prices increased sharply after the conflict in Ukraine, high market
prices are currently reaching a plateau, appearing to trend downward, withmarket volatility increasing.

●

There is an increasing demand among users to transfer contracts fromcompetitors to our Company in correspondence with changes in the retailbusiness environment due to high fuel prices and electricity transaction
prices staying at high levels●

Trends toward decarbonization have been accelerating, accompanying
progress in government policy and institutional development• The topic of nuclear power is becoming increasingly important at the GX
Implementation Council• Introduction of a long-term decarbonized energy auction system• Intensified competition in renewable energy public offering●

Accelerating digitization of services in both the public and private sectors■ Direction of FY 2023 initiatives
Basic premise of our business operations
Firmly establishing governance and promoting
compliance
In order to rebuild trust, everyone in the Group will work
together on the following to be reborn as a corporate groupthat ensures strict compliance.
With thorough compliance as the fundamental premiseon which our business management is based, we will pushthrough reform of our organizational climate so each andevery employee will take compliance seriously as their own
personal matter and put it into practice.
● We will drastically strengthen internal control to ensurethat we can cope with various environmental changes andrisks that may occur in the future.
●

Kansai Electric Power Group Integrated Report 2023

Assess the environment and act in accordance withthe three key initiatives

Key initiatives

EX

Seeking to achieve zero-carbon
emissions
EX: Energy Transformation

VX

Transforming into a service provider
VX: Value Transformation

BX

Building a robust corporate
constitution
BX: Business Transformation

Establish operation at the seven nuclear reactors and strive to achievea power portfolio that takes into consideration trends toward
decarbonization.

Move forward with and further deepen initiatives for innovation, etc. byleveraging our strengths to offer new value.

With ongoing uncertainty in the business environment, it is essential tocontinue to examine our business portfolio for sustainable growth and tocontinue cost structure reforms that can be made with self-help efforts.

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Medium-term Management Plan

■ Main efforts in FY 2023
Reforms of organizational climate●

Establishment of the Organizational Climate Reform
Committee chaired by the President to build anorganizational culture where all executives andemployees can candidly talk about their feelings andawareness across positions and sections, while also
overseeing and promoting a series of reforms.

Strengthening internal controls●

Delivery of messages from senior management, centralized
gathering and analysis of employees’ opinions throughdialogue, and solving cross-functional issues

The Internal Control Board was established to oversee
risk management plans in cooperation between
specialized corporate divisions and business execution
divisions.
Promoting initiatives to strictly observe relevant laws
and regulations and to prevent inappropriate incidents
through monitoring, assessment, and improvement ofbusiness performance●Kansai Electric Power Group Integrated Report 2023

Making efforts to promote Groupwide compliance andrisk management by establishing the Compliance
Promotion Headquarters to promote unified measures
toward drastic reinforcement of internal controls and byappointing the Chief Compliance Officer, or CCO, as
the highest-ranking officer for promoting compliance.

Verification system utilizing external human resources

Special supervision by the Board of Directors (reform
monitoring) requires reports on the progress status ofseries of reforms in conjunction with Board of Directors
meetings, follow-up on the status of individual
initiatives, and advising and guidance on additional
measures, etc.
● Special audits by the Audit Committee require not
only reporting on the status of compliance with laws
and regulations, but also periodically and as necessaryon the status of efforts made in series of reforms, as well
as auditing the effectiveness, degree of penetration, andestablishment of these efforts.
●

Additionally, enhancing and reinforcing the structureof the Office of Internal Auditing and drawing on
external expertise (e.g., conducting periodic external
assessments based on international standards) will
improve audit quality.

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Kansai Electric Power Group Overview

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Foundation to Support Value Creation

Financial and Corporate Information

Medium-term Management Plan

■ Main efforts in FY 2023
EX

VX

Seeking to achieve zero-carbon emissions

Accelerate efforts in line with the Zero Carbon Roadmap.
● Give top priority to safety, establish operation at the sevennuclear reactors, and mount efforts to achieve a power
portfolio that takes into consideration trends toward
decarbonization.
●

Examples of primary efforts
Establish operation at the seven nuclear reactors
through the restart of Takahama Nuclear Power Station
Units 1 and 2, with continued safe and stable operation.
● Determine a site for the planned interim storage facilities
outside of Fukui Prefecture by the end of 2023.
● Accelerate efforts to strengthen competitiveness with afocus on the public bidding for offshore wind power
generation, and promote development of solar power
generation through the Corporate Power Purchase
Agreement.
● Aim to build a large-scale hydrogen supply chain fromoverseas to the Himeji area around 2030, expedite
efforts from upstream (supply side) to downstream(demand side) in cross-industrial collaboration withneighboring business operators.
●

Investment

FY 2022
resultsEXbillion yen

238

FY 2023
plan

Medium-term Management
Plan (2021-2025)

215

billion yen

1,050 billion yen(Cumulative target amount for
FY 2021-2025)

BX

Transforming into a service provider

Speed up transformation into a service provider.
● For further advancement of VX, promote service
development based on social and environmental analysis.
●

Examples of primary efforts● Realize and expand the data center business, a vital
platform for a digital society.
● Promote the Zero Carbon Package mainly throughutilization of distributed renewable energy resources,
electrification, and optimal control of these withSenaSon*1.
● Promote and expand the VPP business and grid storage
battery business based on a distributed services
platform*2 (E-Flow LLC).

Building a robust corporate constitution

Continue with efforts in improving efficiency to achievegoals in the cost structure reform set forth in the Mediumterm Management Plan.
● Deepen digital technology-based transformation,
reinforcement of human capital base, etc.
●

Examples of primary efforts● Delve into efficiency improvement by promoting
group-wide value analysis, not by Kansai Electric Power
Company alone.
● Accelerate business exploration and development,
vigorously pushing VX innovation forward.
● In the electric power transmission and distribution
business, upgrade networks to the next generation andthoroughly improve efficiency to adequately respond tosystem updates.

*1 An energy management system that optimally controls distributed energy
resources owned by customers.

*2 A platform that brings together distributed energy resources owned by customers,
power generation companies, etc., and carries out optimal market transactions.

Investment

FY 2022
results

VX

billion yen

28

FY 2023plan
55billion yen

Medium-term Management
Plan (2021-2025)
120 billion yen(Cumulative target amount for
FY 2021-2025)

Cost
reduction*

FY 2022
results

BX

billion yen

78

FY 2023
plan
75

billion yen

Medium-term Management
Plan (2021-2025)
90 billion yen(Single-year target amount for
FY 2025)* Cost reductions from the planned value at the time of formulating the Medium-termManagement Plan

Kansai Electric Power Group Integrated Report 2023

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Financial and Corporate Information

Message from the Executive in Charge of Accounting and Finance

Toru Tanaka
Executive Vice President■

Aiming to achieve the goals set in theMedium-term Management Plan

When the Medium-term Management Plan (2021−2025) was
formulated in 2021, we had to assume that electricity sales
and the unit price of electricity would drop significantly. As
such we decided to take on the challenge of pushing ahead
with fundamentally reforming our business structure, achievinga system to operate all seven reactors in our nuclear power
stations, and providing new value through diverse solutions—in other words, putting us on a growth path by 2025 to take a
big step forward.
However, since then, “black swan” risks (unpredictable,
severe events that only seem inevitable in hindsight) such as
the conflict in Ukraine have reared their ugly heads. Needlessto say, predicting the management environment in even a
few months’ time continues to be difficult.

Kansai Electric Power Group Integrated Report 2023

Despite this, if we base our calculations on certain
assumptions—such as recent market trends—we can begin to
see that we will reach each of the targets for fiscal 2021–2023
that we included in our Medium-term Management Plan. To
reach the targets we have set for fiscal 2025, the final year of
the plan, the most important thing will be for us all to work
together to do all we can to advance our three initiatives ofseeking to achieve zero-carbon emissions (EX), transforming
into a service provider (VX), and building a robust corporate
constitution (BX). Specifically, this will involve pressing forwardwith cost structure reforms that we can accomplish under ourown steam, and maximizing our use of nuclear power, which
is not easily affected by changes in prices for fossil fuels.
Through reductions in our interest-bearing debt—which
exceeded five trillion yen at the end of fiscal 2022—we will
work to make our financial base sounder and at the same timebalance proper investments that will lead to future growth.
Adhering to a policy of stable dividends, we will meet ourinvestors’ expectations.

■

In terms of creating plans to make improvements, rather
than setting direct targets, such as increasing share price or
PBR, we want to discuss about how we can achieve future
growth, what financial strategies we should employ, and othertopics. The other directors and officers also mentioned theimportance of such an approach. Making incorporating stock
market perspectives our default stance, we will further
deepen our discussions and deliberations together withoutside directors about accounting and financial matters, in
response to the TSE requests. The topics include, for example,
what our sustainable profit level should be, what capital
structure is optimal, in what areas we should be concentrating
resources, and what our shareholder return should be. I
understand these are difficult topics, but we will work onthem while continuing dialogue with investors.

Responding to Tokyo Stock Exchange
requests

We have taken requests from the Tokyo Stock Exchange (TSE)to aim to support management awareness of capital costs
and share prices, as an opportunity to sort out as a company
once again how the stock market sees us and to discuss thismatter at a management level.
As far as we can tell from the current share price, wecannot in all honesty say that we are highly rated by the stock
market. Pinning down the reasons for this is not easy, so weare currently working to analyze what investors expect of us,
and what concerns or hopes they have.

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Financial and Corporate Information

Materiality for the Kansai Electric Power Group (Important issues)
Aiming to achieve sustainable growth of our Group and also contribute to the sustainable development of society throughthe pursuit of SDGs and the resolution of other global issues, along with the formulation of our Medium-termManagement Plan (2021-2025), we have identified the following 10 themes for the Group’s materiality (important issues).

■ SDGs associated with the identified materiality
E SG
E

Increase profitability by providing new value

STEP❶

Exhaustively identify risks that may hinder
opportunities to encourage achieving the goals of theMedium-term Management Plan (2021-2025),
evaluate these risks in terms of possibility ofoccurrence, chronology of occurrence and degree of
impact, then extract about 500 items of material risks
and opportunities.

Promote zero-carbon efforts
Strengthen resilient business infrastructure on the condition of
ensuring safety
Achieve business innovation and enhance information security
utilizing digital technologies
Earn trust in our business areas and contribute to regional
revitalization

S■ Materiality identification process

Promote diversity and build a safe and comfortable working
environment
Appropriate risk management in supply chain

STEP❷

Organize important issues to respond to identified
risks and opportunities for the Company after
confirming consistency with the Medium-termManagement Plan and risk map.

STEP❸

With reference to the opinions of shareholders andinvestors, as well as issues seen as important in the
ESG external evaluation, SDGs, various frameworks(International Integrated Reporting Framework, GRI
Standards, etc.), communication with stakeholders,
evaluation items from ESG surveys, etc., identify
important issues to be handled. Evaluate theirsignificance and appropriateness for stakeholders.

Step up efforts to develop and secure human resources
STEP❹

Deepen bilateral communication with stakeholders

G

Firmly establish governance and observe strict complianceKansai Electric Power Group Integrated Report 2023

The Executive Meeting and the Board of Directors
hold discussions to identify 10 material issues.
We refer to the GRI standards (including aspects specific to power) as
fundamental requirements that should be considered in reviews.

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Materiality for the Kansai Electric Power Group (Important issues)
Risks and opportunities of materiality (important issues)
Materiality

Opportunities

Risks
●
●
●

Increase profitability byproviding new value

●

●
●
●

Reduced energy demand due to declining population
Intensification of domestic retail power sales
Reduced competitiveness of existing business models due to market entry by businesses fromother industries
Intensification of customer acquisition competition in the FTTH and mobile marketplaces
Intensification of competition to acquire the excellent real estate properties in JapanCountry and market risks related to overseas business expansion

●
●
●
●
●

●

●

Promote zero-carbon efforts●

Substantial revision of regulations and policies affecting existing businesses as a result ofstrengthening countermeasures for climate change issues

●
●
●

●
●

Strengthen resilient business
infrastructure on the condition of
ensuring safety●●●

Achieve business innovation andenhance information security
utilizing digital technologies
Earn trust in our business areasand contribute to regional
revitalization
Promote diversity and build asafe and comfortable working
environment
Appropriate risk management insupply chain
Step up efforts to develop andsecure human resources
Deepen bilateral communication
with stakeholders
Firmly establish governance andobserve strict complianceKansai Electric Power Group Integrated Report 2023

●
●
●

●
●
●

●
●

●

●
●

●

●

Continued aging of power supply facilities
Facility troubles caused by natural disasters, including abnormal weather phenomena causedby climate change, typhoons, torrential rains, earthquakes and tsunamis
Unplanned stoppages of large-scale power sources, including nuclear power
Interruption of stable power supply due to insufficient measures against cyber attacks andinfectious diseases
Tight supply-demand situation due to severe weather (intense heat and cold)
Interruption of stable power supply due to insufficient measures against cyber attacks
Intensification of customer acquisition competition in the FTTH and mobile marketplaces
Lost business opportunities due to slow business model reform and technological innovation
as well as stagnation in expert personnel development
Intensification of domestic retail power sales
Country and market risks related to overseas business expansion
Erosion of trust resulting from lack of communication with local communities
Intensification of personnel hiring competition due to shrinking labor force
Lost business opportunities due to slow business model reform and technological innovation
as well as stagnation in expert personnel development

●

●
●
●

●
●
●

●
●

Damage to corporate value due to safety issues or serious compliance violations including the
supply chain
Intensification of personnel hiring competition due to shrinking labor force
Lost business opportunities due to slow business model reform and technological innovation
as well as stagnation in expert personnel development
Risk of failure in gaining the understanding of stakeholders due to insufficient information
disclosure resulting from an unsatisfactory response to social demands such as ESG, etc.
Damage to corporate value due to safety issues or serious compliance violations including the
supply chain

Expanded business opportunities by the liberalization of electricity and gas markets(advancement into areas outside Kansai)
Increased interest in energy due to advancements in energy conservation
Changes in electricity usage patterns due to technological innovations
Enhancement of sales channels with expanded alliances
Expansion of domestic infrastructure business resulting from 5G popularization
Business opportunities resulting from domestic social issues, including medicine, caregiving
and the aging of society
Business opportunities resulting from the diversification of needs, including decentralization
New revenue growth opportunities resulting from strengthening trends for ESG investment
and decarbonization
Expansion of renewable energy investment opportunities in Japan and abroad
Revenue growth opportunities arising from establishing new markets
Increased interest in energy due to advancements in energy conservation

Trust earned from customers and society by strengthening resilient business foundations andresulting business opportunities

Changes in electricity usage patterns due to technological innovations
Expansion of domestic infrastructure business resulting from 5G popularization
Improved productivity and creation of new value through the utilization of digitaltechnologies
Business opportunities resulting from the diversification of needs, including decentralization
Business opportunities resulting from increased overseas energy demand
Expanded business opportunities by the liberalization of electricity and gas markets(advancement into areas outside Kansai)
Creation of new value through the utilization of diverse personnel
Increased productivity as a result of promoting workstyle innovation

—
●
●

●

Creation of new value through the utilization of diverse personnel
Increased productivity as a result of promoting workstyle innovation
Gain understanding of our business through timely and adequate information disseminationand communication with stakeholders—

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Materiality for the Kansai Electric Power Group (Important issues)
Objectives and results of materiality (important issues)
Of the initiatives for the identified materiality, we have extracted particularly important items to achieve the Medium-term Management Plan, with targets set as priorities.
Materiality

Non-financial activities

FY 2022 objectives●

Advancement of efforts tocontrol CO2 emissions

Further development andutilization of renewableenergy sources

Promote zero-carbon
efforts

Maintain and improve
thermal efficiency ofthermal power plants●

Keep the top spot for the amount of zero-carbon
power generation in Japan.
Halve CO2 emissions associated with power
generation in Japan in FY 2025 (compared to FY 2013)

FY 2022 results
●

●

●
●

●

Achieve 5 GW scale of new development and 9 GW
scale of cumulative capacity by 2040●●●

Achieved benchmark indicators (A: 1.00, B: 44.3%)

Rationalizing Energy Use and Shifting to Non-fossil Energy●●

includes power sources not under the jurisdiction of theRenewable Energy Division.

Keep the top spot for the amount of zero-carbon
power generation in Japan.
Halve CO2 emissions associated with power
generation in Japan in FY 2025 (compared to FY 2013)

Achieve 5 GW scale of new development and 9 GW
scale of cumulative capacity by 2040

Achieve benchmark indicators* (A: 1.00, B: 44.3%)* Indicators based on the benchmark system of the Act on

Rationalizing Energy Use and Shifting to Non-fossil Energy●

Continuation of safe andstable operation of nuclear
power plants●

3.92 GW*/9 GW or more (target)* The above figure is only for externally announced projects andAchieve benchmark indicators* (A: 1.00, B: 44.3%)* Indicators based on the benchmark system of the Act on

Retain the top spot for the amount of zero-carbon
power generation in Japan (based on surveys andcomparisons from the Survey of Electric Power
Statistics).
Reduction of about 49% compared to FY 2013

FY 2023 objectives

Continue with safe and stable operation based on theoperation plan
(Zero unplanned stoppages)

One case of unplanned stoppage* occurred at
Takahama Power Station Unit 4, but the reactor
resumed power generation promptly after cause
investigation and countermeasures were
implemented. Safe and stable operation continued atother power stations.

●Continue with safe and stable operation based on theoperation plan
(Number of unplanned stoppages “0,” Nuclear power
generated “45.3 billion kWh”)* Takahama Power Station Unit 4 reactor automatic shutdown (fromJanuary 30, 2023 to March 25, 2023)●

Strengthen resilientbusiness infrastructureon the condition of
ensuring safety

Preparation for andhandling of accidents anddisasters●●●

Achieve business
innovation andenhance information
security utilizing digitaltechnologies

Conduct group-wide comprehensive emergency
response drills
Active participation in disaster response training
sponsored by external disaster response agencies
Number of participants in education and lectures(preparation for nuclear power disasters)
Number of drills and training

DX-based efforts toaddress management
issues●Promotion of new value creation

Information security
management●

Major information security incidents “0”Kansai Electric Power Group Integrated Report 2023

●

●

●

●

●

●

Number of participants in group-wide comprehensive
emergency response drills “1,002”
Participation in disaster response training sponsoredby external disaster response agencies “41 sessions”(number of training sessions held)
Number of participants in education and lectures“Approx. 5,300”
Number of drills and training sessions “Approx. 7,100”

Number of new value sources created “41”“1” incident (including Kansai Transmission andDistribution, Inc.)

●

●

●

●

●

Conduct group-wide comprehensive emergency
response drills, training, awareness raising, etc.
Active participation in disaster response training
sponsored by external disaster response agencies
Evaluation of nuclear operator emergency response
drills by the Secretariat of the Nuclear Regulation
Authority: Grade A for all items

DX-based efforts to address management issues [New](Target: 25.2 billion yen in single-year benefits from DX)

Major information security incidents “0”33Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Materiality for the Kansai Electric Power Group (Important issues)
Objectives and results of materiality (important issues)
Materiality

Non-financial activities
Industrial accident status

FY 2022 objectives●●

Promotion of diversity●●

Promote diversity andbuild a safe andcomfortable working
environment●●

Creation of workplaces
where working is easy

●

●

●

Prevention of human rights
violations in businessactivities

Appropriate risk
management in supply
chain

Implementation of Basic
Procurement Policy andpromotion of its adoption
by suppliers

Accident frequency rate “0”Increase the ratios of female managers and female
senior managers to “more than threefold those of
FY 2018 (6.3% and 4.8%, respectively) by the end of
FY 2030”
Female employment ratios “40% or more for officejobs and 10% or more for technical jobs”
Accelerate employment of persons with disabilities
Rate of paid leave utilization “90% or more”
Total working hours “cut by 5% versus FY 2015, or 190
hours/year, which is equivalent to overtime hours perperson”
Male employee childrearing leave utilization rate at“the same level as that of female employees”
Average number of childrearing leave days taken bymale employees “One month or more by FY 2025”
Enhance employee turnover prevention measures

FY 2022 results●

Conducting a questionnaire survey for suppliers topromote their adoption of the Basic Procurement
PolicyAccident frequency rate “0.29”

●

●
●

●

●

Ratio of female managers “3.2%”, Ratio of female senior
managers “2.7%”
Female employment ratios “49% for office jobs and
14% for technical jobs”
Employment rate of persons with disabilities “2.5%”

●

●

●
●
●
●

●

●

Rate of paid leave utilization “99.4%”
Overtime hours per employee “250 hours/year”
Rate of male employee childrearing leave utilization“124%”
Average number of childrearing leave days taken bymale employees “14.5 days”
Turnover rate “0.90%”

●

●

●

●

—
●

FY 2023 objectives

●

—
●

●

Conducted a questionnaire survey for new suppliers
regarding their procurement activities
Conducted a human rights due diligence fact-finding
survey for major and new suppliers

●

●

●

Step up efforts todevelop and secure
human resources

Development of employee
skills and abilities

●

●
●
●

●

Strengthening of
personnel hiring●

Strict enforcement ofcompliance

Firmly establish
governance andobserve strict
compliance

Promotion of human resource development toendure in the highly competitive environment●●●

Maintaining andstrengthening governancesystem●Steady achievement of the recruitment plan “Numberof planned new hires for FY 2023: 470 (New hires: 400,
Mid-career recruits: 70)”
Increase of mid-career recruitment
Major social compliance violations “0”Major environmental compliance violations “0”Steady annual implementation of effectivenessevaluation of the Board of Directors, etc. andcontinuous improvement based on the evaluation
results
Checking the status of maintenance and operation ofinternal control systems

●

●

●
●

●

●

Number of group training participants “38, 685”
Total training cost “1,479 million yen”
Time spent on training per employee “43.5 hours”
Training cost per employee “85,400 yen”●

Number of new hires“484 (New hires: 414, Mid-career recruits: 70)”
Mid-career recruiting plan “70 individuals” for FY 2023,“70” for FY 2024
Major social compliance violations “4”Major environmental compliance violations “2”●●●An effectiveness evaluation of the Board of Directors,
etc. was implemented using a third-party organization.
Based on the results, major future issues and direction
for addressing these issues were reported to the Boardof Directors.
Appropriately implemented. See pages 101-111 of thisReport for details.

●●

Accident frequency rate “0”Increase the ratios of female managers and female
senior managers to “more than threefold those of
FY 2018 (6.3% and 4.8%, respectively) by the end of
FY 2030”
Female employment ratios “40% or more for officejobs and 10% or more for technical jobs”
Accelerate employment of persons with disabilities
Rate of paid leave utilization “90% or more”
Total working hours “cut by 5% versus FY 2015, or 190
hours/year, which is equivalent to overtime hours perperson”
Male employee childrearing leave utilization rate at“the same level as that of female employees”
Average number of childrearing leave days taken bymale employees “One month or more by FY 2025”
Enhance employee turnover prevention measures
Number of human rights violations (serious humanrights violations “0”)Conducting a questionnaire survey for suppliers toencourage permeation of the Basic Procurement
Policy and the Declaration on Partnership Building
The following KPIs have been in place since FY 2023.
Evolution of diverse “individuals” and building anorganization driven by diversity:“Growth oriented index,” “Growth realization index,”and “Diversity realization index”
Building a work environment that supports diverse“individuals”:“Satisfaction level with working environment”
Number of planned new hires for FY 2024:“480 (New hires: 410, Mid-career recruits: 70)”
Major social compliance violations “0”Major environmental compliance violations “0”Annual implementation of effectiveness evaluation of
the Board of Directors, etc. and continuous
improvement based on the evaluation results
Attendance rate at the Board of Directors meetings“75% or more”

See pages 10-12 of our ESG Report for all materiality-related indicators.

Kansai Electric Power Group Integrated Report 2023

34

Kansai Electric Power Group Overview

SpecialFeature3

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Establishment of Innovation Development Division

Shaping the Vital Platform for the Future

Introduction
In July 2023, the Company established the Innovation Development Division, a dedicatedorganization to drive innovation across the Kansai Electric Power Group. The division aims to
support divisions and group companies that undertake creation of new businesses andinnovation, exploring and predicting business opportunities and threats based on future social
and technological trends. By making innovation happen, the division will play an important rolein generating future profits and achieving sustainable growth.

Background
Since its establishment in 2019, the Innovation Lab at the Office of Corporate Planning has beenat the forefront in building a value creation process to realize innovation, which involves activeplanning, promotion of business development, and other activities related to innovation
designed to create various types of value.
Meanwhile, parallel to this, we recognize that the environment surrounding our Group haschanged significantly in the ways described below.
External environment: Increased uncertainty in the business environment (frequent occurrence ofcomplex and discontinuous changes derived from the COVID-19
pandemic, emergence of innovative technologies such as GPT-4)●

Internal environment: Establishment of the new Kansai Electric Power Group Management
Philosophy Purpose & Values (March 2021), with “Innovation” positioned as
one of the Values (Fig. 1).
Due to these circumstances, for our Group to achieve sustainable growth and fulfill ourmanagement philosophy, we believe it is important to continue to undertake innovation that willlead to future value creation and to constantly evolve our value creation process. From thisperspective, we have decided to renew our value creation process to realize innovation. Alongwith this, as part of the optimal allocation and reinforcement of functions and capital, theInnovation Development Division has been established.
●

経営理念

Purpose & Values

存在意義
Purpose

大切にする価値観
Values「あたりまえ」を守り、創る
Serving and Shaping the Vital Platform for a Sustainable Society

公正Fairness

誠実

Integrity

共感

Inclusion

挑戦

Innovation

私たちは、安全を守り抜くことを前提に、
「公正」
「 誠実」
「 共感」
「 挑戦」を大切にして行動しますWith dedication to safety and security, we will act upon the values of Fairness,
Integrity, Inclusion and Innovation

Fig. 1 Kansai Electric Power Group Management Philosophy

Kansai Electric Power Group Integrated Report 2023

35

Kansai Electric Power Group Overview

Value Creation Story

Establishment of Innovation Development Division

Medium-term Management Plan

① Coping with uncertainty: Evolution to a future-oriented value creation process
In order to fulfill the Kansai Electric Power Group’s management philosophy of “Serving andShaping the Vital Platform for a Sustainable Society” and coping with the increasingly uncertain
business environment, we will proceed with value creation through the following process toprovide value to customers and society for many years to come.
New value creation process (Fig. 2)
A Research on the future: Forecast the future by identifying changes based on the medium- tolong-term trends in policies and systems, economy, society, and technology, examining how
these changes will affect future needs in society and with customers, as well as business
opportunities and threats the changes may pose to our Group.
B Business creation: Based on the insight gained in A, explore market opportunities, generatebusiness ideas, and verify hypotheses. During the course of hypothesis verification, develop
new technologies and acquire knowledge.
C Business development: As a result of B, invest an adequate amount of capital in projects thatare to be commercialized at proper timing, and proceed with business development andverification in collaboration with related divisions and group companies as appropriate or, if
necessary, transform existing businesses.

Futureorientedvalue
creationprocess

Enhancementof eachprocess

Preparation ahead of time

Prompt commercialization

Research on the future

Business creation

Business development

Conduct extensive research andexamine business opportunities
and threats in a future-oriented
manner.

Explore market opportunities,
generate business ideas, verify
hypotheses, and develop
technology.

Subsequent to capital investment,
promote business development
and verification in collaboration
with related divisions and groupcompanies.

Process (A)Creation of
intelligence function

Foundation to Support Value Creation

Financial and Corporate Information

Shaping the Vital Platform for the FuturePrimary objectives

Uncovering

Business Overview

Process (B)Enhancement of technology
development function
Securing intellectual property rights
Expanding activities related to humancapital and organizations with a cultureof innovation and inclusion

Commencementof businessIn order to accurately promote value creation in line with the process described on the left, wehave consolidated and reinforced our functions and capital, leading to the establishment of theInnovation Development Division. Seizing the most relevant business opportunities to create
new businesses and transforming our business in preparation for threats, mainly throughactivities at the Innovation Development Division, will enable us to take prompt action andappropriately deal with medium- to long-term opportunities and threats.

② Enhancement of functions leading to value creation
As the Innovation Development Division promotes and drives the value creation process as
described in ①, taking the opportunity of its establishment, the function of each process has
been enhanced as follows.
i. Process (A): Creation of intelligence function*
Creating an intelligence function in the Innovation Development Division enables us to
explore and examine business opportunities and threats to the Kansai Electric Power Groupthrough more future-oriented research in broader areas, thus facilitating quick action (Fig. 2).
ii. Process (B): Enhancement of technology development function
This process helps us become more attentive to and acquire technologies and intellectual
property rights, sources of business competitiveness. Specifically, we will put together thetechnology development function and related capital previously allocated in the former Officeof Research and Development and incorporate them into this process, thereby boosting ourinventiveness and creativity in terms of both technology and business. In addition, we will
invest technical human capital in the exploration of market opportunities and businesscreation, pushing forward the development of technologies that will form the core of ourbusiness. Going forward, we will also play an active role in the standardization of technology,
including energy-related systems, proactively securing intellectual property rights.
In recent years, the Group has invested in startup companies entering the aerospace-related
business and taking on the challenge of practical application of nuclear fusion technology (Fig. 3).
We will continue to pursue proactive measures like this that lead to future value creation.

Fig. 2 Future-oriented value creation process and function enhancement*The function to explore and examine business opportunities and threats for the Kansai Electric Power Group through more
future-oriented research in broader areas, facilitating action.

Kansai Electric Power Group Integrated Report 2023

36

Kansai Electric Power Group Overview

Value Creation Story

Establishment of Innovation Development Division

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Shaping the Vital Platform for the Future
2. Open innovation initiatives
Increase in investment through CVC (K4 Ventures GK) and collaboration with startup
companies
Recruiting and utilizing human capital for dual/concurrent jobs
Co-creation of businesses that solve local issues together with local communities and external
partners●●●

Innovation with aerospace-related businesses

Attempting to realize fusion energy

Fig. 3 Examples of initiatives for future value creation③ Expanding activities related to human capital/organizations with a culture ofinnovation and inclusion
The Kansai Electric Power Group Management Philosophy upholds “Innovation” and “Inclusion”
as items in its Values, and we believe that in order to create innovation, it is important that humancapital/organizations with different advantages empathize and cooperate with each other to takeon challenges in innovation. Based on this belief, the Group has developed various initiatives toencourage collaboration between human capital and organizations, and this has led to value
creation. These initiatives took shape as the Hydrogen Business Strategy Division (established in
May 2021) and entry into the hyper-scale data center business (May 2023).
Going forward, we will continue to implement various measures leveraging diversity in ourhuman capital and organizations, thereby achieving innovation and value creation (Fig. 2).

As a new initiative for open innovation, we would like to propose to those outside the Company
who “sympathize” with our business of solving social issues to become business co-creation
partners with us.
The Group has been engaged in the refurbished PC sales business, which contributes to theemployment of people with disabilities and resource recycling, and the travel platform business,
which revitalizes regional communities by matching travelers with local residents. Through ourbusiness, which provides value for solving social issues, we have gained “sympathy” from local
communities and external partners for our approach and the value we provide.
Furthermore, beyond the boundary of the Group business, as members of local communities,
we are actively participating in business creation activities aimed at solving issues faced bycommunities.
Through these activities, we will broaden the circle of “sympathy” and combine the strengths
and resources of the Group with those of localities and external partners to make further
contributions in solving social issues.

Future initiatives
1. Initiatives at the Kansai Electric Power Group
Advancing human capital diversity in conjunction with reorganization: 50 staff members joinfrom the former Office of Research and Development
Promoting mid-career recruitment (mid-career hiring)
Utilizing the in-house dual-job holding (dual work) system
Encouraging collaboration among related divisions as a driver for new business development
●

●
●
●

Kansai Electric Power Group Integrated Report 2023

37

Kansai Electric Power Group Overview

Value Creation Story

Establishment of Innovation Development Division

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Shaping the Vital Platform for the Future■ New businesses: Rising to the challenge
In the face of increasing social issues, with Energy, Transmission & Distribution, Information & Telecommunications, and Life/Business Solution positioned as our core businesses, we will continue to create
new value in areas around these sectors as well as where they overlap.

CyrusOne KEP, Inc.

Pont des Tech Inc.

Gekidan iino Godo Kaisha

Established as a fifty-fifty joint venture with CyrusOne, a U.S.
data center developer and operator. CyrusOne KEP, Inc. willdevelop and operate hyper-scale data centers (HSDCs)*1 withinvestments of more than one trillion yen over the next 10 years
or so, aiming for a total storage capacity*2 of 900 MW.
Utilizing both companies’ strengths: the Kansai Electric PowerGroup, which has developed its variety of businesses such asenergy, real estate, information and telecommunications, andCyrusOne, which has accumulated advanced expertise in sales,
design, development, and operation of HSDC business, thisventure company will provide cloud service providers with theworld’s highest quality digital infrastructure services, facilitating
improvement in social and digital infrastructures.

Pont des Tech purchases used computers from companies
and upgrades their hard disks to solid-state drives, adds
memory, and cleans them. It also sells high-quality computersthat are affordable and safe to use. This is our first entry into
the refurbished PC sales business.
In cooperation with special subsidiaries for people withdisabilities, the Group will work to broaden employment
options for people with disabilities to play an active role in its
refurbished PC business, thereby expanding it.

Through iino, a 5 km/h mobility service created by the
Innovation Lab, Gekidan iino Godo Kaisha aims to develop
business at the intersection between Mobility and Culture/
Entertainment. By creating a space that can be experienced
only at 5 km per hour and providing content specifically forthat situation, the aim is to realize transportation that is both
entertaining and comfortable, as well as convenient, thereby
contributing to making the places you are moving throughmore entertaining.

*1: E xtremely large data centers that are designed for mega cloud service providers toprocess a massive amount of data

*2: Indicator that represents the size of data centers

January 2023
New autonomous mobility “type-S712” tested in Sannomiya, Kobe

Kansai Electric Power Group Integrated Report 2023

38

Kansai Electric Power Group Overview

Value Creation Story

Establishment of Innovation Development Division

Medium-term Management Plan

Business Overview

Financial and Corporate Information

Shaping the Vital Platform for the Future

Kaiko Yukinoya Godo Kaisha

TRAPOL Godo Kaisha

In the food domain, the Group started its first “land-based
aquaculture business,” which contributes to the SDGs by
helping solve social issues such as burdens on the marine
environment and the fishing labor environment. Aquaculture
facilities that consume electricity are expected to play a role in
the effective use of energy resources by, for example,
converting surplus energy into food products. Through the
production and sale of “Yukiebi,” or whiteleg shrimp, which is
chemical- and additive-free and edible raw, its outstanding
freshness and taste comparable to prawn, the company will
work toward realizing its philosophy of “delivering valuable
marine products to customers to serve and shape the Vital
Platform for sustainable food.”

Established in October 2019 through the Kanden
Entrepreneurship Challenge System. This company provides
life-changing travel services that connect travelers with local
residents (local friends), allowing travelers to experience theenergy of interacting with other people. The company aims toserve and shape the Vital Platform that amplifies the energy ofpeople who enthusiastically seize the day through travel.
The operator of TRAPOL, a matching platform thatconnects travelers and local residents (local friends),
contributes to solving regional issues such as the increasing
number of “connected minds” (people associated with aparticular region for various reasons) by developing content
that emphasizes the positive qualities of “people” in a region.

Kansai Electric Power Group Integrated Report 2023

Foundation to Support Value Creation

39

Kansai Electric Power Group Overview

Value Creation Story

Establishment of Innovation Development Division

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Shaping the Vital Platform for the Future

Message from the Executive in Charge of Innovation

Kazumitsu Takanishi
General Manager of
Innovation Development Division

In July 2023, as part of organizational reforms, the Innovation Development Division wasestablished. With this organizational change, our goal is to accelerate innovation centeredaround the Office of Corporate Planning’s Innovation Lab and Data Center Business Promotion
Project Team by integrating the former Office of Research and Development into them, andstrengthening resources and optimizing where functions are allocated.
By making it a division, i.e., a department with responsibility for an important mission, we
have made clear our approach of valuing innovation and having it lead innovation in theGroup.
Looking back over the Group’s history, you can see how the Group has achieved growththrough innovation. Some examples include constructing Kurobegawa No. 4 Power Station;
being the first in Japan to generate commercial nuclear power and the first power company tointroduce a mega solar power station in Japan; and entering the information andtelecommunications business and the real estate business. For the last few years, we havecontinued to take on various challenges with innovation, such as expanding the distributed
energy business, tackling zero-carbon thermal power generation, and entering the hyper-scaledata center business. Going forward, we intend to speed up these efforts further. In addition,
the R&D Center, which has now been integrated into the Innovation Development Division,
had pursued various new technologies and many of its results had made a remarkable
contribution to the Group's growth. While inheriting the legacy of the institute, we will
promote strengthening our technical development aggressively.

Kansai Electric Power Group Integrated Report 2023

In order to create further innovation, we know it is indispensable to have the right humanresources, and we will implement various measures in this area. The Innovation Development
Division is about twice the size of its predecessor, the Innovation Lab, with more than 100
members. Even so, we plan to continue to actively recruit external personnel and enhance ourhuman capital. More than 1,000 people have undergone innovation personnel training, and I
think that an innovation-oriented organizational culture is steadily taking hold. To turn thismomentum into action, we will actively press ahead with the human resource system, which
promotes in-house applications for different roles and fields as well as those wanting second
jobs, thereby gathering together personnel with a will to innovate.
Open innovation, which includes collaborations with startups, is also vital. We have set
aside a maximum 11 billion yen to use for investments in startups, and our plan is to support
business transformation and development of new businesses and services at different
departments and group companies.
Through activities like these, the Innovation Development Division—an embodiment of
the Company’s spirit of taking on challenges—will take a leap forward, but they will also havea positive impact on the entire Group.
I will also encourage new ideas and candid discussions, and make sure an organizational
culture of trying new things takes root, keeping a careful eye on activities by departments,group companies, and employees as they work toward innovation.

40

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management PlanEX

Addressing Climate Change

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

In May 2019, our Company declared our support for therecommendations of the Task Force on Climate-related
Financial Disclosures or TCFD.

We have specified ESG-related materiality (important issues), aiming for our growth as a corporate group as well as contributing to the sustainable growth of society by providing solutions to SDGs andother global social challenges. In particular, the Kansai Electric Power Group Zero Carbon Vision 2050 is in place along with the Medium-term Management Plan to address climate change, both of which
manifest “Purpose” as stated in our philosophy system. Accordingly, we have set the Zero Carbon Roadmap to achieve carbon neutrality, with decarbonization efforts underway.

■ Governance
Recognizing climate change as a key business challenge, thefollowing council and committees evaluate and manage theGroup’s initiatives, providing assistance and guidance asneeded to each operating division.

Board of Directors
The results of evaluation and monitoring are reported to theBoard of Directors as needed by each council or committee tohave them reviewed and subsequently reflected in theGroup’s plans and policies.

Sustainability Promotion Council
Chaired by the president, the council develops the Group’s
sustainability measures and monitors their development,
focusing on climate change issues (strategies, materiality, risks,
opportunities, etc.).

Risk Management Committee
The executive vice president chairs the committee tasked
with identifying critical risk factors (including climate changerisks), evaluating the significance of each factor, andmonitoring risk management development, the results ofwhich are presented to the Executive Meeting and theSustainability Promotion Council. Risk measures, meanwhile,
are reflected in the Group’s plans and policies.
The Risk Management Committee disbanded at the end ofJune 2023, followed by establishment of the Internal Control

Kansai Electric Power Group Integrated Report 2023

Board*1 in July 2023 as part of organizational restructuring.
The board is tasked with the review of internal control,
including the Group’s risk management*2.

Zero Carbon Committee
Chaired by the president, the committee has set the Zero
Carbon Roadmap to achieve the Kansai Electric Power Group
Zero Carbon Vision 2050. Specifically, it is designed to sharezero carbon initiatives, map out practical plans, and address
climate change.
*1 For more details on the Internal Control Board, see page 106.
*2 For more details on risk management, see page 117.

Results from meetings held in fiscal 2022
Name ofmeeting

Frequency

Major climate change topics

Board ofDirectors

14 times*• Management status of critical risk

Sustainability
PromotionCouncil

2 times• Review of non-financial activities

Risk
Management
Committee

3 times

critical risk items, including climatechange risks• Review of the significance of risk
items, monitoring and control ofmanagement status• Status toward achievement ofRepresentative Executive Officer, President

Supervision

Zero Carbon
Committee

Executive Meeting
Submission /Reporting(ESG implementation, risk
management review)• Identification and selection of

Climate change governance system
Board of Directors

items

Various Committees
Sustainability
Promotion Council
Risk Management
Committee
Zero Carbon
Committee
Advice /Guidance

Reporting

Divisions/Offices

5 timesgroup-wide zero carbon targets
and review thereof• Decarbonization initiative statuson supply and demand sides• In-house roadmap for fiscal 2023
• Future plans and challenges in theachievement of group-wide zerocarbon targets* Including meetings held for topics other than climate change

Executive compensation based on climate change
performance
A performance-based executive compensation system is inplace, the indexes of which concern CO2 emission reduction
amount and results from external ESG assessments.
Note: For details about executive compensation, refer to page 107.

41

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

EX

Addressing Climate Change■ Strategy
Identification of climate change risks and opportunities
With focus on climate change risks and opportunities in the energy sector, we identify 30 items that could impact the grid power market size, investment decisions, and existing assets for our core business(electric power business), taking into account changes and uncertainties in the future business environment. These items, moreover, are reviewed for their consistency with our materiality and risk items
selected by each operating division to identify items involving significant impacts, reflected properly on the Group’s strategy. The risks and opportunities involved are identified as follows by the
Sustainability Promotion Council, with reference to classification based on the TCFD recommendations.
Risks

Opportunities
Occurrence period*

Occurrence period*1

1Category

Transition risks

Policies

Short tomedium
term

Long
term

High
degree ofimpact*2

Lower thermal power generation operation rates due torestrictions on CO2 emissions such as introduction of carbon prices

〇

〇

〇

Uncertain investment predictability due to intense competition
and institutional changes with respect to renewable energy
development〇〇

Risk description

Technology

Lower demand for grid power due to widespread distributed
energy resources, etc.

MarketLower sales of environmentally unfriendly products〇

Lower public acceptance of nuclear power generation

〇

〇

〇

〇

〇

〇

〇

Category

Energy source

More competitive nuclear power generation

Products andservices

Changes in electricity use associated with technologicalinnovation in distributed energy resources, etc.

MarketPhysical risks

Reputation
Changes in reputation among customers due to increased
CO2 emissions and emission factors

〇

〇

Acute

Higher restoration and countermeasure costs of power
generation, transmission, and distribution facilities due to extreme
weather events〇〇

Chronic

Lower hydropower generation operation rates due to changes inprecipitation*3ーー

Resilience

Opportunity description

Short tomedium
term

Long
term

High
degree ofimpact*2

〇

〇

〇

〇

Increased opportunities for investment in renewable energy〇〇

Increased revenue opportunities associated with zero carbon
initiatives, which accelerate progress in decarbonization
technology

〇

〇

〇

Higher electricity demand due to increase in electrification

〇

〇

〇

Increased confidence of customers and society and the resulting
business opportunities, all brought about by a resilient businessfoundation.

〇〇*1 Short to medium term: from present to 2030, Long term: from present to 2050.
*2 Evaluated based on the risk map (details on page 119). The evaluation, however, is not conclusive and is subject to change due to changes in external conditions such as national policies and energy affairs.
*3 Occurrence periods are not evaluated due to the chronic nature of the risks.
Kansai Electric Power Group Integrated Report 2023

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Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

EX

Addressing Climate Change
Scenario analysis
Scenario setting

We have set scenario drivers to analyze climate change risks and opportunities from theviewpoints of future climate change predictions and the significance of their impact on ourGroup operations.
In predicting future climate change, we have selected two scenarios—the 1.5°C scenario ofachieving carbon neutrality by 2050 and the 2°C scenario of partially reducing GHG emissions—taking into account recommendations by the International Energy Agency (IEA) and theIntergovernmental Panel on Climate Change (IPCC).
“Nuclear power operation” and “incorporation of zero-carbon technology into thermal power
generation,” meanwhile, were selected as factors that could significantly impact our operations.
Based on the scenario drivers mentioned above, the following scenarios are in place toanalyze climate change risks and opportunities.

GHG emission
regulations

1.5°C
scenario C

Zero-carbon
technology
incorporated inthermal power

Full operation

Progress

Controlled
operation

Progress

Full operation

Delay

Controlled
operation

Delay

1.5°C
Achievingcarbonneutrality
by 2050

progress toward carbon neutrality• Our envisioned main scenario• Scenario reviewing impact from nuclear power

operation• Scenario where the effects of incorporation of

zero-carbon technology are reviewed• Scenario where both nuclear power operation and

1.5°C
scenario D

incorporation of zero-carbon technology lag behind• Scenario involving the most challenging conditions

toward carbon neutrality achievement

Scenario analysis results
The 1.5°C scenario suggests that regardless of nuclear power operation and incorporation of
zero-carbon technology into thermal power generation, emissions will increase by about 60%
from 2021 levels. On the demand side, promoting energy conservation and improving theelectrification rate (to 55-58%) are key in achieving carbon neutrality, while on the supply side,
renewable energy levels fluctuate significantly according to the two factors mentioned.
Likewise, the 2°C scenario suggests that electricity demand will increase by about 10% from2021 levels. On the demand side, the electrification rate stands at about 46% due to less stringent
regulations on GHG emissions—a relatively mild increase compared to the 1.5°C scenario. On the
supply side, renewable energy needs to be promoted due to decreased thermal power sources
associated with delays in incorporating zero-carbon technology into thermal power generation,
though GHG emission regulations are less stringent compared to the 1.5°C scenario.
The 1.5°C scenario, therefore, involves more ambitious measures and innovation to achieve
the targets, in comparison with the 2°C scenario.
Note: This scenario analysis is based exclusively on potential future events and therefore does not guarantee the results.

Description• Scenario involving measures and innovation

1.5°C
scenario A

1.5°C
scenario B

Nuclear power
operation

2°C
scenario

2°C
80% reduction
in 2050(from FY 2013 levels)• Scenario where the most significant impact isFull operation

Total domestic energy demand up to 2050 andtrends in electrification and electricity demand
Total domestic energy(PJ) demand (PJ)
13,250expected on our operation in the 2°C scenario,
which involves less stringent GHG emission
regulations compared to the 1.5°C scenario

Delay

Installed capacity by power source in 2050
Hydrogen, ammonia
LNG*
Coal*
Land-based wind
NuclearHydropower
Offshore wind
Biomass
Commercial solar power

Blue line: 1.5°C scenario(%)
Red line: 2°C scenario

100

10,750

75

8,250

50

(GW)
600

450
Domestic electrification
rate (%)

300

5,750

25
Domestic electricity
demand (PJ)

3,250

2021

2030

2040

2050

0

150
0

1.5°C
1.5°C
1.5°C
1.5°C
2°C
scenario A scenario B scenario C scenario D scenario* Zero-carbon power source in the 1.5°C scenario
Kansai Electric Power Group Integrated Report 2023

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Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

EX

Addressing Climate Change
Financial impacts

Taking into account the climate change risks and opportunities identified and the results of scenario analysis, the following summarizes factors that could impact the Group’s financial conditions, andcountermeasures in place.

Major factors impacting financial performance

Scenario with the most significant
impact toward 2050

Thermal power
plants turning into
stranded assets

1.5°C scenario C/D
Reason: Installed capacity ofdomestic thermal power generation
minimizes while the risk of ourfacilities turning into stranded
assets maximizes in 2050.

Sales and revenue
fluctuate, with stringent
GHG emission regulations,etc. influencing theoperation of thermal power
plants.

Increased power
generation cost due
to the introduction ofcarbon tax

2°C scenario
Reason: Thermal power generation
output maximizes during thetransition period.

Financial information●

Ongoing measures, etc.

Percentage of coal-fired power generation in the
power generation mix: 6% (FY 2022)●●

Percentage of thermal power generation output inthe total output: 53% (coal: 12%, LNG: 36%,
petroleum: 5%) (FY 2022)● A cost increase of about 420 billion yen is
expected with no reductions in CO2 emissions*1.
●

Efforts toward co-firing and exclusive firing of zero-carbon fuels
Evaluation of CCUS technology and consideration of its
implementation

Widespread introduction of distributed powersources accelerates local power generation for
local consumption, resulting in decreased sales
and revenue due to lower demand for grid power.

Sales promotion and expansion of energy management
services along with those of distributed energy solutions such
1.5°C scenario D
as on-site solar PPA and grid storage batteries● A one percent decrease in the amount of retail
Reason: Local power generation for● The joint-venture E-Flow was established in April 2023 to help
electricity results in a sales loss of about 23.4 billion
local consumption progresses withcustomers optimize their distributed energy resources.
yen*2.
the highest installed capacity levels● Risks involving loss of wheeling revenues due to lower demandof distributed solar power.
for grid power are minimized by properly responding tosystems, etc., a means to secure profits.

Cost increase resulting from intensified natural
disasters

2°C scenario
Reason: More GHG emissions are
emitted, compared to the 1.5°C
scenario, while climate changeinduced natural disasters occur
more frequently.

Technology

●

Acute

Risks

Policies

Category

Initiatives to ensure expedited recovery from disasters(group-wide comprehensive emergency response drills, etc.)● Loss due to damage caused by Typhoon No. 21 in● Increasing resilience of power transmission and distribution
2018: Approx.12.8 billion yen
facilities to minimize damage from disasters● Securing revenue for disaster recovery costs by appropriately
accommodating institutional changes, etc.
●

the carbon price tentatively set at 16,900 yen/t-CO according to the IEA’s Net Zero by 2050: A Roadmap for the Global Energy Sector (revised in October 2021), the cost of effects is calculated assuming that CO emissions from our power generation operations remain*1	Withunchanged at about 24.7 million tonnes (fiscal 2022).
2

2*2 Calculated based on light and power revenue in fiscal 2022 (2,344.6 billion yen)

Kansai Electric Power Group Integrated Report 2023

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Kansai Electric Power Group Overview

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Financial and Corporate Information

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Addressing Climate Change

MarketOpportunities

Category

Major factors impacting financial performance

Scenario with the most significant
impact toward 2050

Sales and revenue increase, with nuclear power
becoming more competitive and nuclear power
plants operating as scheduled.

1.5°C scenario A/C
2°C scenario
Reason: Nuclear power plants
operate at the highest levels,
resulting in increased sales andrevenue opportunities.

Investment opportunities increase for thedevelopment of new renewable power sources.

1.5°C scenario D
Reason: Investment opportunities
abound, with the highest installedcapacity levels of renewable energy.

Sales and revenue increase, with expanded
electrification boosting demand for grid power.

1.5°C scenario A/C
Reason: Sales and revenue
opportunities increase, driven by
the highest levels of demand forgrid power.

Financial information

A one percent increase in the nuclear power
utilization rate reduces fuel costs by about
7.9 billion yen (FY 2022).

Renewable energy investment target: one trillion
yen by 2040
● Renewable energy investment target (installedcapacity): 5 GW scale to be newly developed inJapan with a cumulative 9 GW scale by 2040

Ongoing measures, etc.

●

Initiatives to restart nuclear reactors, improve their operations,and install, expand, or replace nuclear power plants●

Developing renewable energy in Japan with a focus on offshore
wind power●

Promotion and expansion of solution services such as
electrification proposals for households, utility services forcorporations, and EV packages●●

A one percent increase in the amount of retailelectricity results in a sales increase of about
23.4 billion yen*.

* Calculated based on light and power revenue in fiscal 2022 (2,344.6 billion yen)

Kansai Electric Power Group Integrated Report 2023

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Kansai Electric Power Group Overview

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

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Addressing Climate Change

The Group’s climate change strategies
The Group’s businesses are thus capable of securing resilience both in the 1.5°C scenario and in the 2.5°C scenario through cooperation with customers and communities and through the Kansai ElectricPower Group’s own initiatives, such as renewable energy, nuclear power, and zero-carbon thermal power generation. All of the efforts mentioned above are reflected properly in our climate change
strategies, including the Kansai Electric Power Group Zero Carbon Vision 2050 and the Kansai Electric Power Group Zero Carbon Roadmap.
In addition, efforts are underway to promote nuclear energy, introduce thermal power generation decarbonization technology, and expand new development of renewable energy, each being key torealizing the 1.5°C scenario. We are thus potentially capable of achieving carbon neutrality in a relatively advantageous position by 2050, based on the perspective of “S+3E.”
Focusing on “S+3E,” we are committed to achieving carbon neutrality while flexibly adjusting our strategies to achieve progress in our initiatives, technological development, energy policy trends, etc.

Zero CO emissions frombusiness activities

The Group’s Zero Carbon Roadmap
The Kansai Electric PowerGroup’s emissions

2025
CO emissions
from power
generation

50% reduction(reduction of over
25 million tonnes)

2030

Industry-leadinglevelsCO emission factor of electricity supplied to customers

Reduction targets
Efforts to reduce overall CO emissions in society

Strengthening of grid lines, introduction of distributed grids and creation of VPP

The Kansai ElectricPower Group’s
initiatives●

Established the joint-venture E-Flow, which
operates distributed energy resources in themarket (announced on January 23, 2023)●

Provided renewable electricity to West Japan Railway Company through corporate PPA.
The power to operate Osaka Loop Line and the JR Yumesaki Line are substantiallyswitched to 100% renewable energy●

Started full-scale commercial operation of offshore
wind farms in Akita port and Noshiro port, Akita
Prefecture (announced on January 31, 2023)●

Submitted a draft environmental conservation plan for
the Wakayama Offshore Wind Power Generation Project(provisional title) (announced on June 30, 2023)●

Participated in a solar power project in Nishimuro-gun, Wakayama Prefecture.
The largest installed capacity in the Kasai region with an output of over 92,400 kW(announced on April 8, 2022)●

Started demonstrations of CO2-free hydrogen production using nuclear powerelectricity (announced on December 16, 2022)●

Basic design review underway with plant manufacturers, etc. for the innovative
light-water reactor SRZ-1200

Further efforts toward
zero carbon

100%

Efforts to reduce overall CO emissions through energy
saving, electrification, energy creation and carbon offset

Renewable energy as abase-load power source

Started providing AI-based “SenaSon,” which
optimizes distributed energy resources(announced on January 19, 2023)

Over 7 million tonnes

Electrification rate of company-owned vehicles

Concerted efforts withcustomers and society

●

2050

Industry-leadinglevelsReduction
rate

Recent initiatives

Electrification rate: 100%
(residential and commercial
sectors)
Response to expansion ofrenewable energy

5 GW scale of new development and 9 GW scale of cumulative capacity
to be domestically developed (by 2040)

Restart of nuclear power plants with improved operations

Installation, expansion or replacement of nuclear power plants / Hydrogen production using nuclear energy
Co-firing with zero-carbon fuels for thermal power generation(hydrogen and ammonia)

Opting for exclusive firing

Procurement and selling of hydrogen

Business expansion,hydrogen production

Kansai Electric Power Group Integrated Report 2023

Signed a commissioning contract for a survey on CO2 recovery and transport(announced on September 20, 2022)● Started working on the basic design of a large-scale green hydrogen supply chain
for the CQ-H2 project in Queensland, Australia (announced on May 29, 2023)● Started a joint review of the construction of a hydrogen-ammonia supply chain
based in the Osaka coastal industrial zone (announced on August 30, 2023)●

46

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Foundation to Support Value Creation

Financial and Corporate Information

EX

Addressing Climate Change■ Risk management■ Metrics and targets

Risks associated with our business activities are to be
managed autonomously by each operating division (including
our group companies). We shall enhance risk management forrisks considered to have cross-organizational importanceincluding the supervision of departments with specialized
expertise on said risks that can provide advice and guidance
to various operating divisions.
As climate change poses significant risks to the Group’sbusiness activities, efforts are underway to properly control
various risks caused by climate change.
Specifically, a system to control company-wide risks alongwith other risks excluding those related to climate change(e.g., financial risks) determines the significance of each risk inview of its possible impact and probability, the results ofwhich are plotted on a risk map so as to enable an overview ofthe status of risk management.
Moreover, risk assessment results are presented to the
Executive Meeting and the Sustainability Promotion Council,
with necessary risk control measures reflected in the Group’splans and policies to ensure sustainable growth in the future.
The Internal Control Board was established in July 2023 toreview internal control, including the Group’s risk
management. The board consists of the specialized corporate
divisions and operating divisions, which together supervise
the Group’s risk management, such as risk management plans.
For more information about risk management, refer topage 117.

We work together with all stakeholders to realize the Kansai Electric Power Group Zero Carbon Vision 2050 and help society shift tocarbon neutrality. To this end, we have developed the Zero Carbon Roadmap along with the targets shown below. We also set
internal control indexes in fiscal 2023 for zero carbon initiatives to monitor progress toward the goals.
In addition, we will set targets for reducing GHG emissions by 2030 and update the roadmap as needed.
Zero CO2 emissions from our business activities (by 2050)
Targets set in the Zero Carbon Roadmap
Targets
Reduce CO2 emissions from power generation by 50%
by FY 2025 (compared to FY 2013) andmaintain industry-leading reduction levels.

Recent results
CO2 emissions from the Group’s power generation:
Approx. 24.7 million t-CO2 (FY 2022)● Reduction from FY 2013 levels: 49%●

Provide services to help customers and society reduce
CO2 emissions by over 7 million tonnes (by FY 2030).

●

Approx. 1.9 million t-CO2 (FY 2022)

Decrease the CO2 emission factor of electricity supplied tocustomers to industry-leading levels (by FY 2030).

●

CO2 emission factor (adjusted): 0.420 kg-CO2/kWh (FY 2022)*1

Completely electrify over 5,000 vehicles owned by
the Group (by FY 2030).

●

Electrification rate: Approx. 9% (FY 2022)*2

New development of renewable energy domesticallyat a 5 GW scale and achievement of a 9 GW scale of cumulative
capacity (by 2040).

●

Started generating about 3.83 GW (FY 2022)*1 Reported to the government in compliance with the Act on Promotion of Global Warming Countermeasures, etc.
*2 The electrification rate of the fleet at the Kansai Electric Power Co., Inc. and Kansai Transmission and Distribution, Inc.

We endorsed the GX League Basic Concept in March 2022, which aims to create a society where corporate companies work on
decarbonization for sustainable growth. With this concept in place, a provisional emission trading scheme was launched in fiscal
2023 to encourage companies to achieve their voluntary reduction targets. We have therefore set the following three targets for
reducing GHG emissions, which were submitted in September 2023.
Reduction target levels* ① 2023-2025 total: 70.66 million t-CO2eq② FY 2025:
21.35 million t-CO2eq (-55% from FY 2013 levels)③ FY 2030:
14.00 million t-CO2eq (-70% from FY 2013 levels)* Total of annual direct (Scope 1) and indirect (Scope 2) emission targets submitted to the GX League

Kansai Electric Power Group Integrated Report 2023

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Kansai Electric Power Group Overview

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Business Overview

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Financial and Corporate Information

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Addressing Climate Change
Recent performance

The Group’s CO2 emissions originating from its domestic power generation business amounted to around 24.7 million tonnes in fiscal 2022, registering a 49% decrease from benchmark levels in fiscal 2013.
Non-fossil fuel power generation accounts for as much as 47% of our total output. As a leading company in zero-carbon energy, we will continue to ensure safe, stable operation of our nuclear power
plants, developing and introducing renewable energy.
CO2 emissions from the Group’s* power generation and related factors

1,200

Ratio of non-fossil fuel power generationCO emissions by the Group’s power generation business in Japan (100 thousand-tonne CO)Power generated by the Group’s power generation business in Japan (100 million kWh)CO emission factor of the Group’s power generation business in Japan (kg-CO/kWh)CO emission reduction rates of the Group’s power generation business in Japan (%)

1,138

1,000

0.427

1,079
0.438

0.6

1,060

1,016

954

994

958

907

0.422
0.424

0.357

41%

37%
429

404

400

342

0.287

0.287

304

285

0%
2013

3%
2014

0.266
304

2016

25

247

2018

2019

2020

2021

2022

(FY)

* The figures representing the Group’s power generation in Japan are calculated according to the ratio of capital contribution (power generation by companies in which we haveless than a 50% stake is excluded for fiscal 2022).
GHG emissions(The Company and Kansai Transmission and Distribution, Inc.)

Direct greenhouse gas emissions (Scope 1)*1*2
Indirect greenhouse gas emissions (Scope 2)*1*3
Other indirect greenhouse gas emissions (Scope 3)*1*4
Category 1 *5*14
Category 2 *6*14
Category 3 *7*14
Category 4 *8
Category 5 *9
Category 6 *10
Category 7 *11
Category 8 *12
Category 9 *12
Category 10 *12
Category 11 *13*14
Category 12 *12
Category 13 *12
Category 14 *12
Category 15 *12

Kansai Electric Power Group Integrated Report 2023

Unit
10,000 t-CO2eq
10,000 t-CO2eq
10,000 t-CO2eq

10,000 t-CO2eq

47%
5%

FY 2020
2,857.2
0.6
2,409.9
266.6 (159.9)
166.7 (158.8)
1549.8 (1561.6)
0.0
1.0
0.2
0.6
─
─
─
─
─
─
─
─

FY 20212,377.1
0.5
1,924.2
248.5 (143.4)
104.9 (99.9)
1147.6 (1151.2)
0.0
1.1
0.2
0.6
─
─
─
421.36 (347.5)
────FY 2022

7%
8%
7%

28%

34%

36%
31%

0.1

2017

Renewable energies

0.283

12%
2015

50

Nuclear

13%

16%

0.2

254

Hydropower

31%

0.4

0.3

Petroleum

(%)
100

75

0.334

17%

200

0

30%

LNG

0.5

873

37%

600

472

49%

48%

800

485

956

Coal

0

0

12%
(FY 2022)
Kansai Electric Power(Reference: FY 2021*)
Nationwide* The nationwide breakdown is derived from General Energy Statistics from the Agency for

Natural Resources and Energy.
FY 2021 records were referred to, as FY 2022 records were not available at the time of publication.

2,304.3 □ * 1	The amount of greenhouse gases emitted in our entire supply chain is calculated
in accordance with the Basic Guidelines on Accounting for Greenhouse Gas
0.5 □Emissions Throughout the Supply Chain (ver. 2.5) issued by the Ministry of the
3,126.1
Environment and the Ministry of Economy, Trade and Industry.
255.0* 2	Direct GHG emissions (Scope 1) refer to emissions (energy-derived CO2, SF6 andN2O emissions) reported by electric companies in line with the Act on Promotion
101.7
of Global Warming Countermeasures along with CO2 emissions from2,353.5transportation fuel use, which are excluded from the reporting obligations. SF6
0.0emissions, which are factored in, are based on calendar year.
* 3	Indirect GHG emissions (Scope 2) include CO2 emissions originating from
1.0
electricity and heat purchased from external corporations, which should be
0.2
reported by electric operators in line with the Act on Promotion of Global
Warming Countermeasures.
0.6* 4	Indirect emissions not covered by Scope 1 or Scope 2 (emissions from other─
corporations related to the business activities of the company concerned)─* 5	Product/service price (purchased or procured) × emission intensity + total gas
sales × emission intensity─With the interpretation of the Basic Guidelines on Accounting for Greenhouse Gas
414.1
Emissions Throughout the Supply Chain (issued by the Ministry of theEnvironment and the Ministry of Economy, Trade and Industry) revised, records
for the past fiscal years were adjusted. The figures in parentheses were
determined before revision of the calculation method.

* 6	Capital goods price × emission intensity

Records for the past fiscal years were adjusted due to the partial revision of the calculation
method.

* 7	Fuel/heat consumption × emission intensity + electricity purchased by other companies ×

emission intensity + emissions originating from electricity purchased by other companies
for sale to end users
With the interpretation of the Basic Guidelines on Accounting for Greenhouse Gas
Emissions Throughout the Supply Chain (issued by the Ministry of the Environment and theMinistry of Economy, Trade and Industry) revised, records for FY 2020/2021 were adjusted.
The figures in parentheses were determined before revision of the calculation method.
* 8	Fuel consumption × emission intensity* 9	Waste disposal volume × emission intensity + fuel consumption × emission intensity* 10	Number of employees × emission intensity* 11	(City classification-based) Σ (number of employees × operating days × emission intensity)* 12	Not applicable because of specific to our business* 13	Total gas sales × emission intensity
Records for the past fiscal years were adjusted due to partial revision of the calculation
method.
* 14	The figures in parentheses were determined before revision of the calculation method.
Third Party Assurance
Direct GHG emissions (Scope 1) and indirect GHG emissions (Scope 2) in FY 2022, both with □ ,are certified by an independent third party, Deloitte Tohmatsu Sustainability Co., Ltd. in the
Kansai Electric Power Group Integrated Report 2023 (Japanese ver.)https://www.kepco.co.jp/corporate/report/integrated/48

Kansai Electric Power Group Overview

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Foundation to Support Value Creation

Financial and Corporate Information

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Addressing Climate Change
Green bond issuance

Allocation status of proceeds and environmental benefits (As of March 31, 2023)

We further promote initiatives presented in the Zero Carbon Vision 2050 by leveraging SDG
financing. As a leading company in zero-carbon energy, we are committed to working toward amore sustainable society.
Kansai Electric
PowerGreen Bond

Issuance date

Tenor

Issuance
amountInterestrate

The 547th bondApril 14, 2022

5 years

30 billion yen

0.330%The 548th bondApril 14, 2022

10 years 25 billion yen

0.574%The 556th bondJuly 20, 2023

10 years 20 billion yen

The 558th bond September 7, 2023 10 years 20 billion yen

Use of proceeds

Development, construction, operation,and renovation of renewable energy
projects (hydro-, wind-, and solar-power);survey and demonstration of hydrogen0.900%
related projects; energy creation/storage
promotion projects
1.073%◆ Allocation status of proceeds
Kansai Electric Power
Green Bond

The 547th bond

The 548th bondFinancing amount (net proceeds)

29.9 billion yen

24.9 billion yen

Allocated amount

29.9 billion yen (allocation completed)24.9 billion yen (allocation completed)

Refinancing amount24.8 billion yen

20.6 billion yen

Association with
SDG targets◆ Businesses to be financed

Supply side

Demand side

Hydropower plants

Number of cases: 73
Installed capacity: 1,699 MW

Number of cases: 104
Installed capacity: 2,767 MW

Renewable
Wind power plants
energyNumber of cases: 1
Installed capacity: 138.6 MW

Number of cases: 2
Installed capacity: 706 MW

Solar power plants

Number of cases: 1
Installed capacity: 92.4 MW

Number of cases: 2
Installed capacity: 21.8 MW

Hydrogen business—

R&D

Renewable energy

Number of cases: 1● Services where our solar power
equipment is installed on therooftop of a corporate customer’sbuilding, etc., with operation andmaintenance services provided

Number of cases: 1(Same as on the left)◆ Environmental benefits
CO2
emission
reductions

Supplyside

Hydropower plants
Renewable
Wind power plants
energySolar power plants

Demandside

Renewable energy

5,072,935 t-CO2/year
1,848 t-CO2/year—

27,930 t-CO2/year

126 t-CO2/year
1,987 t-CO2/year
Demonstration of power generationby co-firing and exclusive firing ofhydrogen●J oint development and survey of
new hydrogen production
technology●V erification research on businesses
capitalizing on surplus electricity
and green hydrogen●S earch for locations suitable forhydrogen production●Outline of thedemonstration

Kansai Electric Power Group Integrated Report 2023

Supplyside

Hydrogen business—

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Kansai Electric Power Group Overview

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VX

Commitment to Solutions

Our Group has been meeting the various demands of our customers and society by offering total solutions that combine our services, including comprehensive energy supply which is mainly offering
electricity, as well as telecommunications, daily life and businesses.
While customers and society have increasingly different needs, with social changes triggered by the global decarbonization movement and COVID-19 infection, we are committed to exceeding
customers’ expectations so that they will continue to select the Kansai Electric Power Group. Specifically, we are addressing head-on the needs and problems of customers and society while expanding
and providing valuable service solutions for home use, businesses and communities.

Services for residential customers
We offer a variety of services to help customers live
comfortably, conveniently, and cost-efficiently. These include
electric charging plans tailor-made to suit customers’
lifestyles, combined price plans for gas and electricity, and asubscription plan (Hapi e Set, Hapi e Set Solareji) for
promotion of electrification toward zero carbon, which
combines a fixed amount of electricity, the lease of theenergy-saving electric hot-water supply system EcoCute, andsolar power generation equipment.
We also offer services, such as dispatch of support
personnel to customers experiencing problems (sudden
power outages, etc.) and operating the Kanden Kurashi Mallfor the convenience of customers. These are all designed tohelp customers live a fulfilling life, with solutions available thatare specifically made in response to customers’ needs andlifestyles.
As an energy company, we are committed to improving
these services for customer satisfaction.

Hapi e Set
The Hapi e Set is an electrification subscription plan comprises
a “fixed amount of electricity” and the “lease of electric
appliances” (energy-saving electric hot-water supply system
EcoCute, etc.), where customers are free to choose an electriccharging plan and electric appliances according to theirlifestyle needs. It is a 10-year, fixed-rate plan of electrificationthat ensures a safe, comfortable, and convenient life.

Capturing customers’ feedback to create and improve
services
We work to create and improve services in response torequests received from customers through our contact
centers, website, etc. so we can meet our customers’ needs.
Sharing ofcustomer
opinions
Contact
centerWebsiteHapi e Set Solareji

Review of service
improvement/
creation

Customer
opinions/requests

The Hapi e Set Solareji, a new packaged plan comprising a“fixed amount of electricity” and the “lease of equipment”(solar power generation equipment, etc.) is designed for
newly built residential housing.
Customers

Services that reflect
customer opinions

Kanden Kurashi Mall
The Kanden Kurashi Mall is an EC mall that helps customers
solve problems in their daily lives. It consists of services
offering in “real estate and housing,” “insurance,”“housekeeping support,” “life support” and “healthcare andlearning,” offering wide-ranging services to provide solutions
to customers.

Kansai Electric Power Group Integrated Report 2023

Number of services improved and created based on
customers’ feedback
2022. 4 – 2023. 3 results

5350

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

VX

Commitment to Solutions

Kansai Electric Power Group Integrated Report 2023

 olar power generation equipment and storage batteries are subject to control as of*1 Stheend of April 2023, and EVs and air-conditioning units to be added by the end of
fiscal 2023. More equipment will be added in the near future.

Planning
Analyze the current
situation

Implementation

Calculate CO reduction
potential anddevelop a roadmap

SolutionsCOeReduceProjected decrease in energy consumption and CO2 emissions
Energy saving Reduce

miss

ions

Electricity switch
SwitchFossil fuel●Electricity switch

Grid power(CO emission intensities
decrease gradually)

Benchmarkyear●

Hydrogen, etc.

SwitchWhile we are committed to working together with customers
and communities to realize decarbonization and carbon
neutrality, we offer solutions (Zero Carbon Package) madespecifically to meet their needs. These range from consulting
and planning services for CO2 emission reduction to support
for implementing specific measures.
The Zero Carbon Package provides solutions for eachstage of CO2 emission reduction: ① “visualization” of energy,② “production” of energy, ③ “conservation” of energy, and ④“switching” energy.
As for the ① “visualization” of energy, we collaborate with
Zeroboard Inc. in providing the cloud service “zeroboard,”
which calculates and visualizes CO2 emissions based oninternational GHG protocol; CO2 emissions originating from
customers’ operations are visualized and analyzed to develop
the best possible reduction solution. In addition, we will help
customers calculate and visualize CO2 emissions originatingfrom their supply chains, products, and services.
On-site solar power generation services are also available
for the ② “production” of energy. Customers have on-site
solar power generation equipment installed by the groupcompany Kanden Energy Solution Co., Inc. (hereinafter,“Kenes”) and use the electricity generated, with the billcharged according to the amount they use. Many customers
opt for these services as they are very convenient. (For details,
refer to “Concrete measures” on page 52.)
“SenaSon,” an AI-based system optimizing operations of
distributed energy resources, made its debut in April 2023 forthe ③ “conservation” of energy. It is designed to control
energy resources such as solar power equipment, storage
batteries, EVs, air-conditioning units, and production
facilities*1.

Zero Carbon Package(Offsite)

Air conditioning, energy
management
Electricity switch, shift tonon-fossil fuels(ammonia, hydrogen, etc.)●

Renewable energy
electricity menu /Purchase of certificates(J Credit, Green Power
Certificate, I-REC)

Produce

Renewableenergy(Onsite)Produce

The “Zero Carbon Package” solution

For ④ “switching” energy, Kenes’ utility services implement
electricity switching at fossil fuel facilities. They take care ofdesign, financing, and construction of facilities involving
electricity switching, providing follow-up services spanningfrom tuning to operation and maintenance. Additional plansfor offsetting CO2 emissions through CO2 -free electricity arealso available for electricity used in facilities that havecompleted the transition to electricity. The renewable energy
certificate “I-REC,” which is valid in more than 50 countries(primarily Asian countries), moreover, is obtained for overseas
customers while the value of renewable energy electricity isprovided.
In addition to these services, the Zero Carbon Package
provides various solutions that meet customers’ needs. It isavailable nationwide, not just limited to the Kansai area, andhas been utilized by many customers.

Energy consumption

Services for corporate customers

2050
Purchaseof certificates* Switch Zero carbon●

Renewable energy (solar
energy, etc.) onsite/offsite+ Storage batteries*Offsets CO emissions from grid power. Certificates to be purchased are expected to decrease asCO emission intensities decrease gradually.

Providing SenaSon
SenaSon (Smart energy aggregate Solution), which was
released in April 2023, controls all kinds of distributed energy
resources in real-time, thereby helping customers reduce CO2
emissions and save energy.
Compatible with the DR*2 order, it also reduces constraints
in power systems caused by increased introduction ofrenewable energy, contributing to realize a decarbonizedsociety.
emand Response: Energy resources are controlled to strike a balance between*2	Dsupply
and demand of electricity, with demand patterns adjusted accordingly.
Function ①

Customer premises

Customer’s other locations

Optimized control of all kinds of distributed energy resources
based on demand and power generation forecasting
AirProduction
Solar power
StorageconditioningEVs
facilities, etc.
equipment
batteries
units
Demandand power
generation
forecasting

Distribution
warehouses

Office buildings,
etc.

Solar power
equipment
Storage batteries
EVs
Air-conditioning units
Production facilities, etc.

Control
order

Linkedwith servers

DR order, etc.

Function ②
Optimized resource
control for
DR orders, etc.

Aggregation coordinator

3
Function ③
PPS

Optimized control ofmultiple locations

Function ④
4All resources and locations are controlled on the same screen

51Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

VX

Commitment to Solutions
Concrete measures<Example of on-site solar power generation services provided>
Nikken Kosakusho Works, Ltd. came up with the slogan“Machining ECO” in 2009 to provide customers with productsthat contribute to saving energy and improving efficiency(energy and cost saving). As efforts are underway worldwide
to promote decarbonization and achieve SDGs, the company
is committed to further pursuing “Machining ECO.” As part ofits commitment, the company decided to start studying
introduction of a solar power generation system.
The company emphasized cost-effectiveness as well as
energy-saving performance when planning the system. As aresult of reviewing our estimation, the company found it
sufficiently cost-effective and adopted our “on-site solar
power generation services,” of solar panels with a total area of
20,000 m2 and a capacity of 1,920 kW, which were installed on
the rooftop of the company’s main plant in January 2022.
Storage batteries are also in place to prepare for power
outages during disasters, etc., which are estimated to becapable of supplying electricity for lighting fixtures and airconditioning units at offices, and servers for about five hours.
The company think they are effective for emergency response
measures as these systems ensure the safety of employees
and information securities.

Services for customers in the community sector

Close to zero CO2 emissions at World Heritage andNational Treasure Himeji Castle

We are developing new solutions, taking into account thechallenges and needs of customers and local communities,
while working on sustainable, attractive urban development
through our community business, which coordinates andprovides company attraction programs (for vitalizing the
Kansai economy and creating electricity demand) and theGroup’s wide-ranging proprietary solutions.

Our Company and the Himeji municipal government jointly
applied to the Decarbonization Pilot Area Program, hosted by
the Ministry of the Environment, and Himeji City was
designated as one of the first pilot areas.
We will be addressing the needs and challenges of Himeji City
to come up with specifically made solutions, thereby virtuallyeliminating all CO2 emissions from power consumption at Himeji
Castle and its neighboring public facilities by fiscal 2026.

Japan’s first Renewable Energy 100 Town
Suita Sustainable Smart Town inauguration
Japan’s first Renewable Energy 100 Town was launched in
April 2022, where area bulk power receiving, renewableenergy, and non-fossil fuel certificates are used to power thewhole town virtually and exclusively with renewable energy.
Solar power generation facilities, storage batteries, and EVs,
meanwhile, contribute to improving resilience toemergencies.
Renewable energy
power source

Procurement

Non-renewable Procurement
energy powersourcePost FIT

Contractor

Kansai Electric Power Group Integrated Report 2023

Decarbonization pilot area
Local
residents

Publicfacilities
Himeji Castle and its
neighboring facilities

Local
companies Renewable energy development

Tourists(unused municipal land)

Creating a decarbonization domino, originating from a zero carbon castle

Area bulk
power
receiving

Procurement

Supplying renewable electricity (virtually 100%) by leveraging non-fossil fuel certificates

Nikken Kosakusho Works’ trade name and solar panels on the rooftop

The entire Himeji City area

Energizing the Kasai economy by attracting data centersand creating demand for electricity
While the increasingly digitalized society is resulting in an
exponential increase in the amount of data, there has been a
construction boom for data centers, where telecommunicationequipment operates 24 hours a day, 365 days a year,
consuming a massive amount of electricity.
We have been providing services to data centers for a longtime through the course of our business, working to create
electricity demand in the Kansai area and provide solutions
specially developed by the Group. These efforts have led tothe development plan for the Optage Sonezaki Data Center,
which was announced in fiscal 2022.

52

Kansai Electric Power Group Overview

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

VX

Commitment to Solutions

Providing area value improvement and community
delivery services in Smart Eco Town Hoshida“Area value improvement services” were launched in the
Smart Eco Town Hoshida, which is being developed by
Kanden Realty & Development. These services include town
security maintenance and car-sharing service provided jointlywith other companies, all designed to support community
development and management.
“Community delivery services” are also available on a trial
basis to support shopping and improve convenience in the
town and peripheral areas. Through these services, we arecommitted to creating a community that satisfies theresidents and the companies making inroads.

promote renewable energy. We, therefore, will provide
support for electricity self-sufficiency to prepare for power
outages during disasters, etc. In addition, the wholly owned
subsidiary E-Flow will help the industrial park operate largescale storage batteries to generate revenue from trading.
We will utilize distributed resources including customer
production facilities, solar power and other forms ofrenewable energy, storage batteries, and EVs to contribute toachieving zero carbon and striking a balance between supply
and demand in electricity.

Services for customers in the transportation sector
Supporting electrification of business fleets

Leveraging community mobility data and reviewing“last one mile transport” services
We are using data obtained from mobility sensors to monitor
behavior changes and create prosperity in Sannomiya, Kobe,
where redevelopment is underway. A new mobility system,
for example, was introduced in February 2022 to improve themobility and accommodation capabilities in the community,with mobility spots* demonstrated. Beverage and fooddelivery services were also demonstrated in October the same
year for public spaces. Going forward, we intend to propose
more marketing measures such as holding events to further
revitalize the local economy.

To help customers electrify their business fleet and, byextension, reduce CO2 emissions from the transportation
sector, we provide leasing services for EVs and their charging
facilities along with EV Bus Package Services, which offer
customers electric buses, charging facilities, and energy
management as one package.

Supporting the switch to EVs

Kansai Electric Power Group Integrated Report 2023

Research and development(business overview)

Leveraging FMS

Energy Management System (EMS) coupled with
Fleet Management System (FMS) FMS×EMS

Leveraging EMS

Leveraging FMS

Electric bus operation management

Leveraging EMSElectric bus charge control, supply-demand
management at business locations, renewableenergy utilization

Leveraging DWPT

Operation and energy management

Introduction of advanced technology
DWPT system embedded in the road charges
electric buses while traveling2025: Participating in Expo 2025→2025 and beyond: Demonstration by city buses

as well as a transport node, which promotes the movement of people.

An area micro grid will be constructed in the Toyooka City
Hub Industrial Park to improve the resilience of the area and

The Company will participate as one of sponsors in the Future
Society Showcase Project Exhibition at Expo 2025 Osaka,
Kansai. The project was adopted in July 2022 to demonstrateresearch and development supported by the Green
Innovation Fund*1, where 100 electric buses will be jointly
operated with Osaka Metro Co., Ltd. and other companies
inside and outside the venue. Newly developed technology
will be demonstrated, including fleet and energy
co-management, autopilot functions, and dynamic wirelesspower transfer, or DWPT.
In addition, we will install and operate*2 the charging
facilities for “flying cars” at the vertiport in the venue. We willcontinue to work on these future-oriented initiatives andpromote electrification in the mobility sector to help realize azero-carbon society.

Leveraging DWPT

to support the movement of people, each equipped with functions other* Spots
than mobility platforms, such as a telecommunication base station and rest area

Participating in the Toyooka City Area Micro Grid
Project, etc.

Initiatives for mobility at Expo 2025 Osaka, Kansai

With this one packaged service helping customers electrify
their business fleet, we provide solutions for challenges suchas selection of vehicles, installation of charging and powersource facilities, operation of the fleet, monitoring ofelectrification effects, and promotion of decarbonization.

“Green Innovation Fund Project—Smart Mobility Society Construction,” offered by*1	the
New Energy and Industrial Technology Development Organization (NEDO)
upporting operation of ORIX Corporation’s flying car vertiports in the Expo 2025
*2	Svenue

53

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

VX

Commitment to Solutions
Participating in VPP business

Establishment of the limited liability company E-Flow
We established the E-Flow LLC in April 2023. Leveraging theresults of VPP demonstration and the expertise derived fromit, E-Flow specializes in trading and operation of distributed
energy resources such as customers’ production facilities,
renewable energy (solar power, etc.) and large-scale storage
batteries.
Specifically, E-Flow extracts untapped value from existingenergy resources (customer production and power generation
facilities, etc.) to alleviate issues related to tight electricity
supply and demand and accommodate fluctuations inrenewable energy output.
As for renewable energy resources such as non-FIT solar
power plants, meanwhile, the services it provides include
precisely predicting renewable energy output, which issusceptible to weather conditions, and providing maximum
non-fossil value.
Taking into account the characteristics of individual storage
battery (capacity, degradation risks, etc.), moreover, E-Flow
improves the profitability of large-scale storage batteries with
AI-controlled optimized operation systems, contributing tostabilizing electricity supply and further promoting renewableenergy.
Participating in a storage station business
Utilizing the national government’s subsidiary, we will have a
stake in one of the largest storage stations in Japan (48 MW /113 MWh) and E-Flow will be in charge of its operation. With
this business, we will contribute to stabilization of electricity
supply and demand and the further introduction ofrenewable energy.

Kansai Electric Power Group Integrated Report 2023

Rendering of the planned storage station

Initiatives abroad
Cooperating with WASSHA Inc. in providing electricity
services to areas without electricity in Africa
The Company entered into a business partnership with
WASSHA Inc. in August 2019 to provide electricity services toareas without electricity in Africa, particularly in Tanzania,
where solar panels are installed at grocery stores called“kiosks” for lease of LED lanterns equipped with solar-charged
batteries to those living in areas without electricity.
We procure equipment such as LED lanterns to be leased
to WASSHA, which seeks partnership with kiosks to have them
introduce the leased equipment for promotion and expansionof the services.
We would like to expand the scope of this service businessand explore the further value creation for it by utilizing ourknowledge and expertise that have been accumulated in ourelectricity business over the years. At the same time, we arecommitted to contributing to sustainable growth of society
by providing solutions to global social challenges such as
SDGs and decarbonization.

Specific initiatives
We have been developing our business in a variety of areas
internationally for over 20 years, not just limited to Japan.
Demand-side initiatives
As a demand side initiative, we started surveying energy
management in Japanese companies’ plants in Thailand inaround 2016.
While companies are stepping up efforts to addressenvironmental issues to achieve carbon neutral by 2050, there
have been a growing number of customers who want to saveenergy and reduce CO2 emissions, but do not have the systems
required or cannot afford to implement them on their own.

54Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

VX

Commitment to Solutions

Some of them do not even know where to start with energy
management at their overseas plants.
We, therefore, established Kansai Energy Solutions(Thailand) Co., Ltd. (K-EST) in Bangkok in August 2018 andKansai Energy Solutions (Vietnam) Co., Ltd. (K-ESV) in Ho Chi
Minh in December 2021 to provide solutions primarily to
Japanese plants operating in these countries.

Providing on-site services in Thailand and Vietnam
with no initial investment
K-EST and K-ESV
K-EST and K-ESV serve Japanese customers that have business
footholds (plants) in Thailand and Vietnam. They provide
overseas solutions for solar power generation systems,
co-generation systems (CGS), on-site control of water chillers
and boilers, I-REC, energy-saving measures, etc. to help
customers reduce energy use, costs and CO2 emissions.
They also provide on-site services, where they own andoperate facilities (solar power generation systems, CGS,
boilers, etc.) installed at customers’ plants, which in turncustomers use the electricity and heat (steam, chilled water,etc.) generated by those facilities, with service fees paid to
K-EST and K-ESV during contact periods.
K-EST and K-ESV have three major advantages.
First, no initial investment is needed, and cost-saving
effects can be expected upon receiving the services. Second,
being full-maintenance services, they eliminate facility
maintenance work and costs. And third, solar power output
and steam production are visualized.
K-EST and K-ESV, moreover, uses JCM (Joint Crediting
Mechanism) facility subsidies in providing on-site services
abroad.

Kansai Electric Power Group Integrated Report 2023

Providing such services as part of JCM projects contributes
to bilaterally reducing CO2 emissions and alleviating the costburden on customers.

JCM project examples
Our demand-side initiatives abroad started with services from
K-EST, which introduced a co-generation system to Teijin
Thailand Limited.
As a JCM project, a high efficiency 10 MW engine
generator was installed at the Teijin Thailand plant.
With the services in place, Teijin Thailand Limited has
shown a significant reduction in CO2 emissions in addition to
power supply in times of power outages, with CGS operating
on its own. They all contribute to stable operation at the Teijin
Thailand plant.
Through this project, we have proceeded to many other
JCM projects such as installation of high-efficiency chillers/boilers and solar power generation systems.
More recently, we reached an agreement with Sumitomo
Rubber (Thailand) Co., Ltd. on the implementation of solar
power generation systems (about 22 MW) and CGS (about 13
MW). In addition, offering our Group’s total solutions including
I-REC procured by the Company, we help customers achievecarbon neutrality in electricity usage.
As for these projects, we cooperate with reliable local
partners with the intent of passing on our technology to Thai
technical staff. The objective is to introduce “Japan-quality”
facilities and keep them operating efficiently. We arecommitted to expanding operations in target countries tohelp customers reduce energy use and CO2 emissions in thelong term.

Rendering of solar panels to be installed at Sumitomo Rubber (Thailand)55

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

BX

Promoting Innovation

We will create new value and provide a broad range of solutions to meet developing social issues in the energy and non-energy fields by further
accelerating innovation, while leveraging advantages from the comprehensive strength of the Group. Our Group defines innovation as being
excellent in both the ability to create new businesses and services and the ability to reform operations of existing businesses, with an establishedsystem that nurtures autonomous and sustainable innovation. We are strengthening our structures and building systems capable of promoting
these goals.

■

Cooperation with outside organizations andstructural enhancements to promote
innovation

In 2019, we set up an Innovation Lab in the Office of Corporate
Planning as a hub to further accelerate innovation whileleveraging the Group’s comprehensive strength.
In addition to promoting, coordinating, and steering
innovation across the Group, the Innovation Lab has beenworking to create new businesses and services not only in theenergy field but also in non-energy fields in collaboration withexternal venture companies. In the energy field, we aremoving ahead on the core business and looking into
launching new businesses in peripheral areas such as solar
and other renewable energy: hydrogen, storage batteries,
data center, and CCCS.
In fields other than energy, we are engaged in businessdevelopment activities aiming to contribute to solving social
issues mainly in agriculture/food areas, drawing on thestrengths of our core businesses.
Furthermore, we have recently integrated the Innovation
Lab and the Office of Research and Development to form theInnovation Development Division, aiming to explore businessand technological trends from a medium- to long-term
perspective and adapt to changes ahead of others with afocus on commercialization. Through these efforts, we will
accelerate innovation and create new value.

Kansai Electric Power Group Integrated Report 2023

Venture investment
Investment
policyconsolidation

Investment
theme
selection

Hands-onIntrapreneur
Research

Indirect
investment

Approachmethodselection

Idea
contestBusinessplanning

Entrepreneurshipchallenge

Businessdevelopment

Directinvestment

VenturecapitalfundsInternal venture

External venture
Synergistic effect▶︎ See Special Feature “Establishment of Innovation Development Division” on page 35.

56

Kansai Electric Power Group Overview

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

BX

Promoting Innovation

Investment track record[Indirect investment]

K4 Ventures GK
In order to strengthen our collaborative efforts with venturecompanies that possess innovative technologies and businessmodels, K4 Ventures GK, the investment entity of the Group(hereinafter, K4V), makes direct investments in specific venturecompanies and indirect investment in venture capital funds.
With its investment limit raised to approx. 11 billion yen todate, K4V will continue to support the growth of promisingventure companies through investment, promoting
collaboration with our Company and our group companies.

Date ofannouncement

Investment location

Investment targets and investment sectors
Investment targets
· Start-ups in existing business areas of integrated
energy/power transmission and distribution, informationand telecommunications, and life/business solutions thatenable both start-ups and our Group to expect growth inbusinesses through collaboration
· Start-ups with innovative technologies, business models,etc. in new business fields for the Group
Investment sectors
Batteries, mobility, robotics, AI, IoT, big data, agriculture andfood, etc.

Target stage
Fundamentallyall stages aretargets

Seed

Early

Kansai Electric Power Group Integrated Report 2023

MiddleLater

EV Motors Japan Co., Ltd.

2023. 1.31

folofly, Inc.

EEI 4 Innovation & Impact Investment Business2023. 2.15

Zeroboard Inc.

2018. 9.19

Scrum Ventures 3 Fund2023. 5.17

Kyoto Fusioneering Ltd.

2019. 9.10

Global Catalyst Partners Japan 2 Fund2020. 2.28

Future Food Fund 1

2022. 1.26

ANRI GREEN 1 Fund2022. 6.30

ICJ 2 Fund2022. 9.27

EEI 5 Innovation & Impact

2023. 3.23

Future Food Fund 2

Date ofannouncement

Challenging the unknown; entering into new fields
together with venture companies

Clean Energy Connect, Inc.

2022. 8.31

2018. 6.20

[Direct investment]

Management philosophy

2022. 8.	 1

Investment location

2018. 5.	 7

Ubie, Inc.

2018.11.	1

VPP JAPAN Co., Ltd.

2018.12.28

SIRC Co., Ltd.

2019. 3.	 1

EditForce, Inc.

2019. 4.12

CONNEXX SYSTEMS Corporation

2019. 4.15

NExT-e Solutions Inc.

2019. 5.23

Pixie Dust Technologies, Inc.

2019. 6.	 5

Space Power Technologies Inc.

2019. 7.12

GIRASOL ENERGY Inc.

2019.10.31

Exergy Power Systems Inc.

2020. 6.29

Informetis Co., Ltd.

2020. 9.30

Next Energy & Resources Co., Ltd.

2021. 3. 2

Okage K.K.

2021. 3.	 8

TERRACE MILE, Inc.

2021. 9.30

ALGO ARTIS CORPORATION

2021.11.30

WILLPORT Co., Ltd.

2022. 5.31

MEIJO NANO CARBON Co., Ltd.

2022. 5.31

PowerX, Inc.

2022. 6.30

SPACE ONE Co., Ltd.

2022. 6.30

SUCRECUBE Japon Inc.

Intrapreneur (internal entrepreneur) Promotion System
The Kanden Entrepreneurship Challenge System has been in
operation since 1998, allowing employees in our Group to
propose new business projects and going on to commercialize
those projects that pass screening. From 2018 onward, the
IDEA CREATION CHALLENGE, a contest to share new businessideas, and the Acceleration Program, which raises those ideas
to the level of business plans, have been added, thus
strengthening and promoting these systems that support
internal entrepreneurship across those three steps. As of theend of July 2023, ten projects have been commercialized
under the Kanden Entrepreneurship Challenge System. Of
these, four companies are operating business as part of ourGroup.
<Companies with ongoing business>
Yaala Inc. established in October 2021
TRAPOL Godo Kaisha established in October 2019
Meteorological Engineering Center, Inc. established in
September 2004
Kanden-EL-Farm, Inc. established in January 2000
●
●
●

●

57

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BX

Foundation to Support Value Creation

Financial and Corporate Information

DX Strategy■ Strategy formulation and promotion structure■ DX promotion status (Fostering awareness)

At the Group, DX is positioned as an indispensable means for realizing the three pillars set forth in the Medium-term Management
Plan (EX, VX, and BX). As a driving force for DX, the DX Strategy Committee was set up in 2018 and has been studying andsequentially rolling out specific initiatives through 31 rounds of discussion held as of the end of fiscal 2022. Additionally, in the same
year, K4 Digital Co., Ltd. was established jointly with Accenture Japan Ltd. to draw on our internal and external expertise forsupporting initiatives in our respective departments. In particular, while we have been focusing on initiatives that contribute toimproving productivity, going forward we will further accelerate and bolster value creation initiatives as well.

The Group holds a group-wide event “Digital Day” once a year,
fostering awareness of DX promotion in presenting keynote
speeches by other leading companies in DX, messages fromour senior management in each division, introduction of DX
case studies, and awards for key individuals in DX promotion.

Overall picture of prioritized items—Contribution to KX—
Medium-termManagementPlan

We aim to continuously serve our customers and communities,
KX while contributing to attaining a sustainable society.
Seeking to achieve
EX zero-carbon emissions

Existing business areas
DX

Digitalinfrastructure

VX Transforming into a service provider

Building a robust corporate
BX constitution

Step up efforts in value creation
toward the future

New business areas

Productivity
improvement

DX human capital development

Value creation

DWS tool development

Data analysis infrastructure development
Automation/
decisionmakingAI
Data■ DX promotion status (Achievement)
From the start of active investment in DX in fiscal 2019, we havebeen steadily achieving DX results of approx. 20 billion yen peryear as of fiscal 2022. IRR is expected to be approx. 10%.
(billions of yen)

Study/implementation of measures

Respective divisions● Set up a department responsible forpromotion in each division● Formulate the division’s DX plan, study
and implement specific initiatives

Kansai Electric Power Group Integrated Report 2023

Effects

Cumulative balance
IRR: approx. 10%

Results for FY 2022:
approx. 20 billion yen

Overall strategy and direction

DX Strategy Committee● Division heads and a director examine
strategies● Formulation of our DX strategies andplans● Supervision, management, and support
for initiatives taken by each division

Investment

0

(FY)

Technical support

K4 Digital Co., Ltd.
● Established jointly with Accenture
Japan Ltd.
● Supports initiatives taken in each division
with the latest digital technology

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
(Result)(Forecast)58

Kansai Electric Power Group Overview

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

BX

DX Strategy■

DX promotion status (Human capitaldevelopment)

Highly-skilled DX human capital
Having defined the “data scientist” who can perform highlevel data analysis and “digital consultant” who can make aspecific plan and support the digitization of advanced
business issues, we have seconded them to K4 Digital Co., Ltd.
to execute their duties. We invite applications from employeeswith digital expertise for our in-house personnel system(Super Professional Career Challenge System), allowing themto exercise their expertise through duties appropriately

For promoting DX, digital human resources are essential, withprofessional knowledge and expertise in digital technology.
To solve business issues using data analysis and digitaltechnology, the Group is working to develop and secure“highly-skilled DX human capital” and “DX promoters fromrespective operating divisions,” as well as to enhance DX
literacy for all employees.

Qualified applicantsPersonnel development policies

Development target(FY 2025)

Highly-skilled
DX human capital

Approx.
40 individuals

DX promotersfrom respective
divisions

Approx.

3,200 individuals
Approx.

17,000* individuals●

Data analysis

Solving business issues

Data scientist

Digital consultant

Secondment to K4 Digital Co., Ltd. and execution of duties

Digital translator

Data analyst
Basic data analysis training● Training for utilizing
visualization tools●

Practical training for consulting● Practical training for DX application● Project team-based on-the-job
training●

・DX training content for all employees

All employees* Including DX promoters from respective divisions

A

Agile

Respond to changes in theenvironment and market in anagile and flexible manner throughtrial and error.

C

Customer value (CX)

Focus on customer experienceand solve business issues in acustomer-oriented manner.

Kansai Electric Power Group Integrated Report 2023

DX

Business intelligence

B

Digital technology

DAnalyze an enormous quantity ofdata to gain new insights andapply them to decision making inbusiness.

Utilize digital technology best
suited for solving management
and business issues.

assigned. In this way, we are striving to secure highly-skilled
DX human capital through mid- career recruitment andselection from our IT and other operating divisions. To date,
we have secured 28 highly-skilled DX human capital. With theannual targets set, we aim to train 40 employees by the end of
fiscal 2025.

DX promoters from respective divisions
Having defined the “data analyst” who can perform businessdata analysis and “digital translator” who can make a specificplan and support the digitization of business issues, K4 DigitalCo., Ltd. is playing a central role in fostering DX promoters in
respective operating divisions by providing them withtraining for data analysis and practical training for DX
application. Thus far, approx. 1,200 DX promoters have been
trained, and approx. 3,200 more will be trained by the end of
fiscal 2025.

All employees (approx. 17,000 employees are qualified)
We have defined the “Kansai Electric Power’s ABCD for DX” (A:Agile, B: Business intelligence, C: Customer experience, and D:
Digital technology) as the DX literacy that all employees of the
Kansai Electric Power Co., Inc. and Kansai Transmission andDistribution, Inc. should acquire.
As a strategy to ensure acquisition of DX literacy andreskilling for all employees, we are striving to improve the DX
literacy of all employees by implementing DX training
sessions (videos) required for all employees, and incorporating
DX training (classroom lectures and workshops, etc.) into
stratified training programs in cooperation with the Office of
Human Resources and Safety Management.
We also plan to provide DX training for management (e.g.,
introduction of advanced DX case studies on a global scale).

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Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

BX

DX Strategy■

Specific DX case studies (Productivity
improvement)

While the Company possesses a variety of assets (facilities andhuman resources), the environment surrounding the electric
power industry is facing a number of challenges, including adecreasing workforce due to aging human capital, aging
facilities, difficulty in handing down technology, andintensifying natural disasters. The decreasing workforce is amajor challenge, in particular. With the number of mid-careerand younger workers decreasing and experienced workers
accounting for a majority in the workforce, it is alreadybecoming difficult to pass on technology, and a large numberof facilities need to be maintained by a smaller number ofworkers, posing a major challenge to us.
To solve this problem, it is necessary to reduce theoverwhelming amount of work through operational reform, as
well as realizing site maintenance work, which is difficult without
skilled labor. To that end, we are devoted to Future Operation, aproject to fundamentally reform business operations on adivision-wide and cross-divisional basis by combining various
digital technologies, led by our power generation divisions andKansai Transmission and Distribution, Inc.
Future Operation envisions what we aspire to be from a
medium- to long-term perspective, in view of future changes
in our internal and external environments, and aims fortransformation in the Group.
As an example of our efforts, we are promoting “smart
security” to maintain and improve quality and systems withthe use of the latest digital technology in security operations
such as patrol inspections and troubleshooting. We havealready introduced smart security for inspecting the inside ofstacks in thermal power plants, and will continue to expand
introduction in a variety of fields.
In the future, by utilizing image recognition, big data

Kansai Electric Power Group Integrated Report 2023

analysis, and other forms of technology, and by transferring
security capabilities, which have been human skills, tomachines, we intend to minimize human intervention andfurther advance remote and automated operation.
Development of inspection methods for the inside of stacks ofthermal power plants using self-flying drones
Inspection with amaintenance lift
(Conventional)

The 5th Infrastructure Maintenance Awards
Received the Minister of Economy, Trade andIndustry Award
Inspection with drones

AI capability was developed jointly with an AI venturecompany that won a competition for AI achieving optimal
operation of a grid storage battery. We developed andverified AI making full use of approx. 50 million records of datathat reflect our knowledge of operation methods for different
types of resources, market rules, etc., obtained from the past
VPP demonstrations and actual transactions in various markets.
E-Flow*2 is ready to start optimal operation of grid storage
batteries using K-VIPs+ by the end of fiscal 2023. This willcontribute not only to improving profits but also to stableelectricity supply and further expanded introduction ofrenewable energy sources.
enewable energy sources owned by customers such as solar power generation*1:	Rdevices,
storage batteries, electric vehicles (EVs), production facilities, etc.
new company established by the Kansai Electric Power Co., Inc. in April 2023
*2:	Athat
specializes in the transaction and operation of distributed energy resources(Utilization of in-housedeveloped drones)
Drone flight status(Shot from the bottomof the stack)Omnidirectional camera*
enables on-the-spot statuschecking for the entire
interior of the image taken.
* Use of a single-lens reflex
camera enables us to checka crack as small as 0.3 mm
in width.

Multi-use of DER

Achievements in VPP business· In response to multiple
power markets launchingin 2024· Know-how in DER operation· Rich operational performancedata· Insights and cutting-edge
technologies obtained throughdemonstration projects

Capacitymarket
(kW)

JEPX
(kWh)

Demandresponse
market(△kW)

Latest regulatory knowledge· Various regulatory information
related to power transactions· Flexible adaptation toregulatory changes

Power control andmarket integration systemdevelopment technology
Achievement of
optimal operation· Bidding plan creation using AI· Reliable DER control· Robust security design■ Specific DX case studies (New value creation)
The Group has developed K-VIPs+, a distributed service
platform equipped with AI capability (hereinafter, “K-VIPs+”),to achieve optimal operation of distributed energy
resources*1. This AI capability is an algorithm to calculate“when, in which market, and how we utilize resources for
optimal facility operation.”60

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

BX

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Promoting Value Analysis (VA)
■ General overview of VA activities
The Group is promoting Value Analysis (VA) activities as part of its
efforts to achieve cost reduction targets toward BX (Building arobust corporate constitute) as set forth in its Medium-termManagement Plan.
In July 2021, with strengthened procurement functions, westarted cost structure reform efforts in cooperation with ouroperating divisions and suppliers.
VA is an approach that includes collaboration from theplanning stage between not just our procurement and operating
divisions but also suppliers and other parties involved tothoroughly examine efficiency improvement in expenses, repairs,
and capital investment for each operating division from allperspectives along the supply chain.
For example, in procuring materials and equipment,
contracted construction work, etc., we analyze the cost structurewith a focus on the original function and purpose and discuss
ideas from many different angles. This has led to waste elimination
through specification review, equalization of the amount ofmaterials, logistics improvement, etc., realizing minimized costs.
Perspectives for cost reduction
Strategic
perspective

Examples of viewpoints
Change quantity
Change quality level

Changespecifications

Change method
Change special product togeneral-purpose productOptimize life cycle cost, etc.
Change construction method
Change scope

Changeprocess

Change the timing of
implementation
Change request level, etc.

Concrete examples
Examine closely to minimize manhours required
Reduce excessively demanding
specifications
Unify specifications among offices
and with other companies
Expand competitive orders throughgeneralization
Cost evaluation and minimization
throughout the life cycle
Simplified construction method,
shortened construction period
Separation of materials andconstruction costs, integration ofdesign and construction
Avoiding demand concentrationand periods of high prices
Relaxation of excessive quality
requirements and supplierqualification levels

Change purchasing method

Changeprocurement
methodChange suppliers’ competitiveenvironment
Work with suppliers to reduce
costs
Optimize supply chain
Strengthen bargaining powerin price negotiation, etc.

Collective order, joint procurement,
multi-year contract, etc.
Create competition, third-party,
international procurement, etc.
Cost reduction activities throughcollaboration
Total optimization of businessprocess, including internal sales andoutsourcing by group companies
Negotiation within assessed pricerange, comprehensive consensus
building, etc.

■ Concrete measures
Example of cost reduction in maintenance services
Until now, the function of IT equipment used at our thermal
power plants, such as general-purpose servers, has been
ensured by renewal of equipment for which the manufacturer’s
warranty period has expired.
In considering the effective use of equipment beyond the
manufacturer’s warranty period, as a new initiative, we began toconsider using a third-party maintenance provider (a company
that provides services to prepare for possible failures byextending hardware maintenance periods after the
manufacturer’s warranty period expires).
In consideration of this, the Thermal Power Division and the
Sourcing and Procurement Division collaborated to conduct
research on third-party maintenance providers and technicalinvestigation, and requested competitive quotes from multiple
companies that were confirmed to have satisfied our required
standards, achieving substantial cost reduction.

Example of cost reduction through cost engineering*1 by
Kansai Transmission and Distribution, Inc.
Kansai Transmission and Distribution, Inc. undertakes costengineering of procured products and engages in costcutting activities to achieve a win-win situation with suppliers.
Through disassembly of equipment actually used and cost
analysis based on a series of studies in line with the Sangen
Principle (Three Actuals)*2, the company identifies costcutting potential and proposes changes in component
structure, specifications, materials, etc., to its suppliers. This
also encourages our suppliers to make counterproposals,collectively achieving cost reduction, including changes intypes of contracts and equalization of order quantities.
Kansai Transmission and Distribution, Inc. and the Company’s
Sourcing and Procurement Division will continue to work
together with the aim of becoming the industry's top runner incost engineering by utilizing internal and external knowledge.

Cost engineering workshop
engineering: Skills to analyze costs based on knowledge of the market,*1	Cost
suppliers, product manufacturing and processes, and technologies owned byeach division, etc., in order to identify cost reduction opportunities

Principle (Three Actuals): An approach for solving problems involving*2	Sangenobserving the “actual thing” at the “actual site” and understanding the “actual
situation”

Kansai Electric Power Group Integrated Report 2023

61

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

BX

Human Capital Strategy■ General picture of “reinforcement of human capital base”
General picture of “reinforcement of human capital base” —Toward the practice of human capital management—
The Group will create a virtuous cycle in which individuals and the organization grow together while embodying our Values: “Fairness, Integrity, Inclusion, and Innovation,” through human capital innovation
and D&I* promotion grounded in work environment improvement through workstyle innovation and health and productivity management.
* D&I: Diversity & Inclusion● By making these human capital strategies interlock with business strategies, we will contribute to the achievement of the Medium-term Management Plan, enhance our corporate value on a sustainablebasis, and encourage penetration of our management philosophy into our corporate culture.
●

Business strategies

・Kansai Electric Power Group Medium-term Management Plan・Zero Carbon Vision 2050, etc.
Interlock

Human Capital Strategy

Disclosure

Stakeholder“Human capital”
innovation
Dialogue

Diverseindividuals withautonomy andexpertise

Individuals andthe organization

grow together.
Work engagement improvesin a positive spiral.

D&I promotion
An attractive
organization thatembraces diversity
as a driving force

Sustainableenhancementof corporate
value andpenetration ofmanagement
philosophy
into corporate
cultureWorkstyle innovation, health and productivity management
Work environment in which each employee vigorously plays an active role

Securing diverse
human capital

Labor market
Kansai Electric Power Group Integrated Report 2023

62

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

BX

Human Capital Strategy“Human capital” innovation

D&I promotion

In order to pursue EX, VX, and BX, or the key initiatives of the
Kansai Electric Power Group’s Medium-term Management
Plan, we will provide employees with opportunities to gain
diverse experience and put their expertise into practice byencouraging them to take on the challenges of building theirintended careers in the company and promoting theirautonomy, and also by providing training that will help themdevelop their expertise. Moreover, in addition to increasing
mid-career recruitment, we will actively acquire human capitalfrom the labor market by, for example, inviting human capitalfor dual/concurrent jobs and further enhance and improvethe diversity and expertise of our human capital to nurtureand secure human capital that can interlock with our businessstrategies.

With the strength of each individual’s “differences,” bytransforming diverse ways of seeing things and ideas into
organizational “power,” we will improve the creativity andflexibility of the entire organization. With an organization that
attracts diverse individuals with autonomy and expertise, wewill build a relationship where individuals and theorganization grow together through empathy.

Various measures to reinforce the human capital base (major inputs)“Human capital”
innovation● Securing “quality and quantity” of humancapital interlocked with business strategies● Developing and strengthening new channels for

mid-career recruitment● Formulating a policy for male employee childcare

D&I promotion

leave and actively encouraging them to take leave● Raising women’s career awareness and promoting

understanding with the people surrounding themWorkstyleinnovation, healthand productivity
management
Prerequisites forbusiness activities

Output (individual and organizational growth)
Evolution of diverse “individuals”
and building an organization
driven by diversity
KPI
・Growth oriented index
・Growth realization index
・Diversity realization index

Workstyle innovation, health and productivity
management
We are taking advantage of digital technology to add value toour operations, developing workplaces for realizing diverse
workstyles, and continuing to carry out health and wellness
activities on a workplace basis. Through pursuit of a betterworking environment, we aim for “each and every employee
to lead a vibrant and fulfilling life.”

Outcome (value creation)

Innovation andnew value
creation● Creating an environment in which eachindividual can work vibrantly● Fostering health awareness in every employee● Initiatives to support proactive safety activities

at workplaces● Initiatives for respecting human rights

Kansai Electric Power Group Integrated Report 2023

Building a work environment that
supports diverse “individuals”
KPI
・Satisfaction level with working
environment

Improvementin productivityof existing
businesses

Realization ofmanagement
philosophy“Purpose &Values”

63Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

BX

Human Capital Strategy■ “Human capital” innovation

Personnel development policies

About the Kansai Electric Power Group Academy
The Group established the Kansai Electric Power Group
Academy in 2018 and systematized our corporate training andeducation systems in order to actualize our Company belief
that “developing human capital is the most important thingfor prevailing in a severe competitive environment” alongwith our Group philosophy of “management that values
people.”Academy organization

Academy Management Office
Human Resources Cultivation Group,
Office of Human Resources and Safety
Management

Academy President(Company President)

Department head*

Department head*

Department head*

Department head*

For all employees

For all employees

For all employees

Elective

Group Management
Philosophy Department

Fundamental Personnel
Cultivation Department

Business Personnel
Cultivation Department

Next Generation Leader
Cultivation Department

Practicing Management
Philosophy, etc.

Acquiring Fundamental Skills

Acquiring Expertise and Skills

1

2

Management Skills

Leadership

Thinking Abilities

Communication Skills

Resilience

Quality Control

32

Acquiring Business
Management Skills

Engineering Division
System Operation Division
Power Distribution Division

Perspectives andOutlooks as Managers

The Kansai Electric Power Group Academy implements
capability development measures to empower each
employee to be dynamic in their work, willingly taking onchallenges to grow through new workstyles with a view ofrealizing the “Kanden Transformation,” supporting“autonomous career development” of employees.
Specifically, we will practice personnel development
measures to change awareness and behavior, which isnecessary to embody our management philosophy. Alongwith that, to anticipate future changes in the businessenvironment and workstyles, we will launch new training
measures, including reskilling, targeted for both young andexperienced employees. We plan to implement moredevelopment measures designed to enhance each employee’s
strengths and improve or overcome challenges that require
deeper understanding, ensure that expertise is handed down
to the next generation, and encourage actions to improve
productivity and create added value driven by digitaltechnology.
Index

Acquiring Professional
Skills (Group Head Office)Corporate Planning

Energy Environment Planning

Supply and Demand and Trade
Promotion of Electrical Power

HydrogenProcurement

Renewable Energy

Site Division

Decision-making Abilities

Customer Solution Division
Nuclear Power Division

Management Knowledge

Thermal Power Division
Hydropower Division

Nuclear Fuel Cycle

Corporate Communications

HR/Labor

Accounting

Plant Siting

General Administration

Construction Division

FuelInnovation

International Division

Task Fulfillment Abilities

Telecommunications Division
Civil Engineering DivisionInternal Audit

Gas Division

Logical Thinking Abilities

Presentation Abilities*1: Director, Office of Corporate Planning *2: Director, Office of Human Resources and Safety Management*3: Division Manager of Each Division and President of Kansai Transmission and Distribution, Inc.

Kansai Electric Power Group Integrated Report 2023

Improving employee DX literacy
Percentage of autonomous action taken triggered bypractical training: 50% or more*1, 2

Wheeling Sales Division

Targethe percentage of employees who responded to a questionnaire*1 Tsurvey
conducted after taking a practical training course sayingthat they took additional actions based on their autonomy, e.g.,
putting knowledge acquired at the training into practice at workor autonomous learning about DX

Development measures for “human capital”
innovation
Recognizing that the source of the power to move forwardwith the initiatives set forth in the Medium-term Management
Plan is each and every employee, the Kansai Electric PowerGroup aims to create a virtuous cycle in which each employee
plays an active role with willingness to grow and take onchallenges while making the most of their diverse attributes.
Their growth and achievements will eventually improve
profitability and sustainable growth for our corporate
organization.
Specifically, we are working to maximize the success of all
employees in various fields through a series of processes suchas human resource discovery, training, reassignment andappraisal.
Foster / Utilize / Recognize / Find

FosterUtilize

Training

Reassignment

Organic humanresource management
through a combinationof human resource
discovery, training,
reassignment andappraisal

Find

Recognize

Discovery

Appraisalpart from the practical training, basic training on DX literacy*2 Aimprovement
will be provided for all employees by the end of
fiscal 2023.

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Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

BX

Human Capital Strategy
Find

Utilize

Discovery

Reassignment

Adoption of an in-house application system (e-challenge system)

Career design

Supporting the autonomous career development of all individuals, we have implemented an in-house application system thatallows employees to take on the challenges of diverse careers and fields. Based on high levels of motivation, they can exercise theirabilities to their maximum extents even more than before.

As an initiative to support the career development of
employees, we provide superiors with an opportunity tointerview their subordinates once a year.
The interviews are held based on a Career Design Sheetthat describes each individual’s strengths, challenges
requiring deeper understanding, career plans, etc. Each
employee’s characteristics and career plan are shared with
their superiors, and are also used for OJT and reassignment forthe purpose of supporting our employees’ careerdevelopment.

Career challenges (examples)

Objective

Career goal

Global businessDramatic growth of international business

Career mainly in international business areas

New business creation

Further promotion of innovations

Career mainly in new business areas

Core group business

Further growth of group business

Career mainly in core group business areas

Super Specialists
Data Scientist
Cyber Security Engineer
Digital Consulting

Improvement of skills indispensable for
future business operation

Highly specialized and specific career

Renewable energy businessDramatic growth of renewable energy
business

Career mainly in renewable energy business area

Hydrogen businessDramatic growth of hydrogen business

Career mainly in hydrogen business area

Autonomous career development support tool

Aiming for further growth through diverse work experience, in addition to their original work, participants
take on another type of work (specific project work, etc.) during some of their working hours

Dual work challenges

Career challenges

Dual work challenges

FY 2020

FY 2021

FY 2022

Cumulative total

Number ofapplicants

88

121

92

Number of
successful
applicants

33

27

30

Kansai Electric Power Group Integrated Report 2023

FY 2020

FY 2021

FY 2022

Cumulative total

301

Number ofapplicants

10

49

55

114

90

Number of
successful
applicants

8

26

39

73

In order to create an environment in which employees canthink deeply about their own careers, gain awareness, andgrow, we have published a Self-Design Book, a support tool
for autonomous career development. By reading this booklet,
thinking over the content, and learning through various
questions regarding “what you want to be, what you want tovalue, and how you should act as the environment changes
toward the future,” employees can receive hints on how toform their own careers. In addition, to further support each
employee’s autonomous career development, we haveenhanced tools that help employees envision their specificcareers in each division.

65

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

BX

Human Capital Strategy
FosterTraining

As part of personnel development measures through the Kansai Electric Power Group Academy, we support employees who arelooking to improve their abilities and advance in their careers by providing stratified training for early development, selective
training that complements individual strengths and deeper understanding for early development, specialized training to enhancebusiness expertise, as well as executive candidate development programs.
Our training and development systems
Acquisition ofliteracynecessary for
DX practice

Supporting young
and experienced
employees for theiradvancement

Responsible persons
Base level

Stratified
training

New
employeetraining

Selective
training

Training is focused on active
learning so employees canplay their expected roles
and exert expected abilities.

Training forexecutive
candidates

Ⅰ

Application level

Advanced level

Ⅲ

Ⅰ

Ⅱ

Managers

Follow-up

Ⅱ

Ⅲ

Follow-up

Training is provided tostrengthen management
skills to increaseorganizational performance.

Optional training is provided to complement
each individual’s strength and necessary
training for early personnel development.

Elective training

Ⅰ

Ⅱ

Ⅲ

Specialized
training

Division-specific training (skill training / work knowledge training / expert theory training)

Support for
growthInternal certification tests, certification bonuses, challenge training,outside correspondence education, e-learning, etc.

Ⅳ

Logical thinking abilities
Presentation abilities• Problem solving and strategy
planning through case analysis• Strengthening presentation
abilities through presentation
exercises

Ⅱ

Ⅲ

Hundreds of specialized training sessions
are provided so the expertise and skills
will be improved and handed down.
Each trainee’s target and acquisition
status of professional skills are clarified fortheir training in a planned manner.

Management knowledge(Business strategies,
marketing, etc.)

Management knowledge
Task fulﬁllment abilities

Perspectives andoutlooks as managers• Knowledge acquisition
through in-company training
and e-learning• Self-growth through careerinterviews• Commuting to business school• Interaction with outside leaders• Action learning as per theCompany’s transformation
concept• Commuting to business school

Kansai Electric Power Group Integrated Report 2023

Ⅳ

• Interaction with outside
management executive candidates• Forming the “backbone” as amanagement executive

Amid the drastically changing environment surrounding the Group,
we need to break away from prior precedents and cultivate earlyand systematically next-generation leaders who will drive
innovation. In view of this, we are adopting step-by-step outsidetraining programs for employees as a stretch opportunity toadvance their careers. We are crossing conventional work divisions
and incorporating interactions with different types of work as wellas implementing curriculums that always link to business strategies.
With a program V newly established in the Change Leaders Program(CLP) in fiscal 2021 for executive candidates, we have introduced
curriculums designed to be linked to the succession plan.

Creating opportunities for interaction between
management and employees

Ⅴ

Details of executive candidate development program

Ⅰ

Next generation leader—executive candidate development programs

Ⅴ
Communication anddecision-making skills as
a manager• Commuting to business school• Interaction with outside
management executives• Forming the “backbone” as amanagement executive

Opportunities for interaction between management and employees
have been provided since fiscal 2021. The management motivates
employees at milestones in their business careers, and interaction
provides chances for sharing thoughts as well as eliciting employees’
opinions and ideas. Specifically, management and trainees exchange
opinions in small groups when trainees are in their second year in
the Company and when they are newly appointed as special
managerial personnel.

DX personnel development
For the realization of digital transformation (DX), we are developing
DX personnel to advance efforts to increase productivity andgenerate added value utilizing digital technologies. Specifically,
aiming to acquire DX literacy for all employees, we will add new
stratified curriculum and work with K4 Digital, Co., Ltd. to develop
DX personnel and increase their expertise.

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Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

BX

Human Capital Strategy
Recognize
Appraisal

Personnel appraisal system
We have put in place a mechanism to carefully evaluate* each
employee’s “attitude, abilities and qualities” and “level ofcontribution” to our corporate performance from theperspective of practicing our management philosophy,
reflecting these in their salaries, etc., to provide employeeswith more willingness to grow and feel more motivated andrewarded. Appraisal results are reported from superiors tosubordinates. In addition, communication opportunities forfurther growth are provided.
We have also adopted a multidimensional appraisal
system, and introduced it for managers above a certain level.

* When evaluating employees with exceptional attitudes, abilities, and qualities,

the system is designed to allow additional points other than the points awarded
within the prescribed range.

■ Promotion of diversity and inclusion

In April 2022, we formulated the Kansai Electric Power Group
Diversity and Inclusion Promotion Policy. Toward therealization of this policy, we will work on human capitaldevelopment to empower each employee to be dynamic in
their work by willingly taking on challenges, thereby leading
to the realization of the “Kanden Transformation.” We will also
develop an internal environment allowing our employees toadopt diverse career paths and “workstyles” to maximize theirabilities with increased motivation. Our dedicatedorganizations will continue to take the lead in advancing
various initiatives, including periodical information
dissemination and training, as well as creation of a companywide lateral meeting structure to share and adopt successful

Kansai Electric Power Group Integrated Report 2023

examples of initiatives taken by each division/workplace across
our Company and group companies (implemented since fiscal
2023). We will make structures and enhance systems to boost
autonomous D&I promotion by respective divisions.
Kansai Electric Power Group
Diversity and Inclusion Promotion Policy
1. By respecting, accepting, and utilizing the “differences” of each individualand making diverse senses of value and ways of thinking into sources ofstrength for the organization, we will create innovation and establish acompetitive corporate group.
2. We seek to realize workstyles and to cultivate workplace environmentsthat enable everyone to exercise their abilities to their fullest extents,
regardless of gender, age, nationality, and disabilities or experienced life
events and careers.

Promotion of employment of persons with disabilities
In 1993 we established Kanden L-Heart Co., Inc. as a special
affiliate company, and together with Kansai Transmission andDistribution, Inc.* (which was split off in April 2020), theseorganizations encourage employment of people withdisabilities. Kanden L-Heart is actively recruiting people withdisabilities by accepting them as workplace trainees and byother means, in collaboration with the government, relatedorganizations, special-needs high schools, etc.
As a result, our employment percentage of workers withdisabilities reached 2.5% (as of June 1, 2023), having
continuously achieved the legally required percentage (2.3%).
In addition, we are opening up a diverse range of job
positions where people with disabilities can play an activerole, such as office assistant, while also creating a comfortable

work environment tailored to the characteristics of individuals
with disabilities. Pont des Tech, Inc., a member of the Kansai
Electric Power Group, provides expertise in the refurbishmentof used PCs from the perspective of creating safe and highvalue-added jobs as a special-purpose subsidiary, thus
contributing to the promotion of employment of people withdisabilities in society as a whole.

* Kansai Transmission and Distribution, Inc. has been certified as a special affiliate(as our Group) and therefore is included in the calculation of our employment
ratio of persons with disabilities.

Promotion of employment of elderly persons
We are rehiring all applicants after they retire at the age of 60,
and are also continuously working to improve theenvironment so that veteran employees can further utilize theknowledge and experience they have cultivated so far.
Currently, many highly qualified and skilled retirees with
abundant experience are active in a wide range of operationsat our Company and group companies. In addition, as part ofefforts to improve the environment so that all generations cancontinue to play an active role into the future, labor andmanagement are discussing the extension of the retirement
age to 65.
Note: Number of rehired employees (retired employees) at the end of March 2023:
Approximately 950

Initiatives to encourage the further success of female
employees
Various training programs and initiatives are implemented forfemale employees so they can maximize their potential
without underestimating it, be motivated for continuous
self-growth through work, and actively balance work and67

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

BX

Human Capital Strategy

family, etc. even at life-stage transitions. As a new measure, wewill introduce a mentoring program by executive officers(started on a trial basis in January 2023, with full
implementation scheduled to start in the second half of fiscal
2023). With this program, an executive from the Company
serves as a mentor to women at the section manager level insupporting the autonomous career formation of eachindividual employee and fostering their abilities, thereby
increasing the number of female executives.
Although the Company does not adopt a gender-specificwage structure, the difference in average years of service has
caused a gender wage gap. In this regard, we have various
support systems to balance between work and childcare, etc.,
and we are actively promoting female employees tomanagerial positions with targets set for the ratio of female
managers and female senior managers.
Gender wage gap* (ratio of women’s wages to men’s)
All workers

65.0%

Full-time
employees

68.4%

Part-time
employees andemployees
on fixed-term
contracts

67.0%*Non-consolidated figures for the Kansai ElectricPower Company*FY 2022*Includes base salary, overtime pay, bonuses, etc.,
but excludes retirement allowance, commuting
allowance, etc.
*Excludes loaned employees and employees onleave.
*The difference in average years of service, whichis the basis for the gender wage gap (full-time
employees), is 9.1 years.
*Includes medical staff working at the Kansai
Electric Power Hospital.

Targets for promotion of female employees
Appointment
to managerial
positions

By the end of FY 2030, increase the ratios of female managers
and female senior managers to more than threefold those of
FY 2018.
(FY 2022 results: 3.2% for female managers, 2.7% for female
senior managers)

Recruitment

Achieve ratios of 40% or more for women employed in officejobs and 10% or more for women employed in technical jobs.
(FY 2023 results: 49% for office jobs and 14% for technical jobs)

Kansai Electric Power Group Integrated Report 2023

Number and ratio of female senior managers and managers*
Number of female managers

Ratio of female managers

Number of female senior managers

Ratio of female senior managers(People)300
250
200 2.1
150
100

1.9

1.6
112

50

2.9

2.6

2.4

2.1
136

130

2.4

(%)
3.6

2.7

3.0
2.4

166

151

1.8
1.2

64

59

52

47

39

3.2

Promoting the participation of male employees inchildrearing

0.6

0

22/3
23/3
21/3
19/3
20/3
(Figures from fiscal year ends)*Excludes medical staff and transportation staff.
*Figures for the Kansai Electric Power Co., Inc. combined with Kansai Transmission
and Distribution, Inc.
*Managers refer to those equivalent to unit chief or higher.

0

Number and ratio of female hires
Number of female hires

OfficeTechnical

Female ratio

53

51

OfficeTechnical(People)

(%)

60
50

42

39

40
30
20
10
0

18

23
9

28

47 34

49

35

46

43

50
40
30

23
8

60

49

10

11

22/4
21/4
19/4
20/4
(Based on fixed term employment for each fiscal year)

We are encouraging male employees to participate inchildrearing with the aim of deepening their ties with family
members, growing as individuals through childrearing
experience as well as increasing work efficiency and motivation,
leading to further promotion of women’s empowerment.
From October 2022, when the revised Child Care andFamily Care Leave Act comes into effect, setting a target rateof male employees taking childcare leave to be equivalent tothat of female employees (rate of female employees who tookchildcare leave in fiscal 2022: 100%), as well as a new target
average number of days for men taking childcare leave to beat least one month by fiscal 2025, we will further promote theparticipation of male employees in childrearing to achieve this
goal.

14

20
10

23/4

0

Targets for male employees taking childcare leave
Utilization rate

Equivalent to the utilization rate of female employees(Rate of female employees who took childcare leave
in FY 2022: 100%)

Average number ofdays

At least one month by fiscal 2025

Rate of male employees who took childcare leave*

Third-party evaluation of women’s empowerment
As a result of these various efforts, we received the “Kurumin”
certification in accordance with the Act on Advancement of
Measures to Support Raising Next-Generation Children and thehighest “Eruboshi” certification (third level) in accordance with the
Act on Promotion of Women’s Participation and Advancement in
the Workplace. In addition, we were recognized as a “Leading
company for female activity in Osaka City.” Moreover, in theselection of “Nadeshiko Brands” instituted jointly by the Ministryof Economy, Trade and Industry and the Tokyo Stock Exchange,
we were selected as a “Semi-Nadeshiko Brand.”Rate of childcare leave
taken

Average number of days ofchildcare leave taken

FY 202098%

8.3

FY 2021

117%

10.4

FY 2022

124%

14.5

Calculation method for the ratio of men’s childcare leave taken:● Numerator:	Number of male employees whose first childcare leave at birth orchildcare leave for a child started during the relevant fiscal year
● Denominator:	Number of male employees whose spouse gave birth during therelevant fiscal year
Excluding medical and transportation staff
As
employees can take childcare leave until the end of the fiscal year in which theirchildreaches the age of three, the utilization rate may exceed 100% if the fiscal
year in which the child is born is not the same fiscal year in which the first childcare
leave at birth or childcare leave for the same child starts.

*
*

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Measures to encourage male employees to participate
in childrearing and take childcare leave

Efforts to promote mid-career hires and non-Japanesepersonnel to managerial positions

Support for employees identifying as LGBTQ andpromotion of understanding companywide

The “Support for Balancing Work and Childcare Leaflet,”distributed by superiors when a subordinate notifies themthat she or his spouse is pregnant or giving birth, invites
employees to attend the expectant mother/father seminar,
which communicates the importance and benefits of men’s
participation in childcare and taking childcare leave, andencourages them to draw up a “Plan for Taking Childcare
Leave, etc.” useful for communicating with their superiors,
thereby facilitating male employees’ taking childcare leave
when necessary and for a necessary period.
Superiors with subordinates who expect childbirth arerequired to attend the seminar for managers (superiors) in
departments with expectant mothers/fathers so theycorrectly understand the benefits that male participation inchildrearing and taking childcare leave will bring not only forthemselves but also for the company and society, creating aworkplace environment that facilitates balancing work andchildcare.
Additionally, we deliver an email calling for taking childcare
leave to male employees whose spouse have given birth to achild, with the same message sent to their superiors. The
experiences of male employees who took childcare leave are
published on our intranet.

We will continue to promote hiring with an emphasis on
diversity, expand mid-career hiring, and actively promote
mid-career hires to managerial positions. We will also actively
recruit and promote non-Japanese human resources tomanagerial positions.
We set the following goals for the promotion of mid-careerhires to managerial positions in fiscal 2021.

Aiming to deepen employees’ understanding of LGBTQ issues
and creating a comfortable workplace for everyone, we havepublished an informative handbook for all employees that
contains the basic LGBTQ knowledge and prevention ofharassment, setting up a consultation desk as well. We
conducted awareness activities using SOGI (sexual orientationand gender identity) harassment case studies in fiscal 2022, inorder to further promote employee understanding of LGBTQ.
In April 2021, we earned a three-star certification as an
Osaka City LGBT Leading Company. In fiscal 2022, we were
designated the highest “Gold” rating under the PRIDE Indexestablished by work with Pride, a voluntary organization that
evaluates LGBTQ-related corporate efforts.

Promotion to
managerial
positions

By the end of FY 2030, increase the ratio of mid-career hires inmanagerial positions to more than 10 times that of the end of
FY 2020.
(Results: 0.1% at the end of FY 2020, 0.3% at the end of FY 2021,
and 0.6% at the end of 2022.)

Furthermore, we will actively rehire displaced workers who
have built their careers at other companies. We will work toensure that experienced individuals who have gained
knowledge elsewhere can play an active role in our Company.

Support for balancing work and nursing care
Providing employees with basic knowledge about nursing
care, public support, and our internal systems can help
prevent them from leaving their jobs when faced with nursing
care and maintain a balance with work. For this reason, we
have published a Handbook for Work-Nursing Care Balance
Support and hold seminars on the compatibility of work andnursing care.

Handbook for Work-Nursing
Care Balance Support

Kansai Electric Power Group Integrated Report 2023

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Work system, work-life balance support system
Not just unitarily posting various work systems and work-life balance support systems on our portal site, we also provide employeeswith explanations of newly introduced systems as appropriate.

SystemDetails

Super flextime

Flexible work system without designated core time

Telework

Employees can work from home or in a satellite office regardless of reason and without
a limit on the number of times.

Hourly leave

Leave is available in 1-hour units (up to 5 days/year).

Prenatal and postnatal leave

6 weeks before and 8 weeks after childbirth (paid leave)

Leave before and after childbirth

5 days at any time starting from the time the spouse’s pregnancy is determined and nolater than 2 weeks after delivery (paid leave)

Childrearing leave

Unpaid leave until the end of fiscal year in which an employee’s child becomes 3 years
old (up to two times during the period). (Any one of the two times, paid leave up to 7
days from the start of the childcare leave)

Childrearing leave at birth

Up to 4 weeks in total within 8 weeks from (estimated) due date (can be taken in
installments up to two times)

Early reinstatement support menu

Financial support for childcare is provided to employees with a child under 12 monthsof age upon returning to work.

Short working hours (childrearing)

Up to 2 hours per day in 10-minute increments (until the end of September of the year
when an employee’s child is in the first grade of elementary school)

Child nursing leave

5 days (10 days in the case of two or more children) per fiscal year when an employee’s
child receives nursing care, inoculations, or health examinations before entering
elementary school

Family support reserve leave

Employees can use part of their accumulated annual paid leave for participation in theirchild’s school events, going to hospital for infertility treatment, nursing/long-term careof their spouse/relatives, going to get full medical checkups, and other purposes.

Nursing care leave

5 days (10 days in the case of two or more eligible persons) per fiscal year when an
employee provides nursing care to their spouse, parent, child, or relatives

Nursing care leave

Leave is available within 3 years in principle or up to 93 days in total.

Short working hours (nursing care)

Up to 2 hours per day in 10-minute increments (period in need of nursing care and thatan employee applied for)

Support for compatibility
between work and medical
treatment

Short working hours (medical treatment)

Up to 2 hours per day in 10-minute increments (for treatment of “cancer, stroke, liverdisease, heart disease, diabetes, intractable disease, or infertility treatment” for theemployees themselves)

Reemployment systemf-staff system

Reemployment system for those who resigned due to pregnancy, childbirth,childrearing, long-term nursing care, transfer of spouse, or infertility treatment

System that enhances
workstyle flexibility

Support for compatibility
between work and childrearing

Support for compatibility
between work and nursing careKansai Electric Power Group Integrated Report 2023

Promotion of workstyle innovation, healthand productivity management
Integrated promotion of workstyle innovationand health and productivity management

Work system, work-life balance support system
Category■

Under the Medium-term Management Plan, we are committed
to increasing the added value of operations leveraged bydigital technology, accelerating flexible workstyles regardlessof time and place, continuously conducting health activities
on a workplace basis, and promoting line care as a means ofintegrated promotion of workstyle innovation and health andproductivity management.
The “Health and Productivity Management Declaration,”
which was established in January 2018 to demonstrate ourunflagging resolve to work on health and productivity
management, was renewed in April 2023 as follows to clearlyshow the Kansai Electric Power Group’s unified approach.
Kansai Electric Power Group’s Health and Productivity
Management Declaration <Renewed in April 2023>
For the Kansai Electric Power Group’s contribution to the developmentof a sustainable society aligned with its management philosophy
Purpose & Values, it is important that every employee can fully exercise
their abilities in business activities in good physical and mental health.
In addition to taking all possible measures to prevent illnesses amongits employees, the Group will support employees’ health advancement
so each one of them can live a vibrant and fulfilling life as we promotehealth and productivity management and workstyle innovation in an
integrated manner.

Developing and improving comfortable workplaces
For working hours to be managed appropriately, efforts arebeing made across the Group to improve operational
efficiency by eliminating unnecessary operations themselves
and reviewing processes, along with efforts to enhance work
systems that allow for more diverse workstyles through70

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flextime with no core time, teleworking, introduction ofhourly leave, encouraging employees to take leave, and othermeans in accordance with the Group policy.
Major indicators and achievements related to workstyle innovation
Targets

FY 2021

FY 2022

Overtime working hours per
employee

190 hours
per year

241 hours

250 hours

Paid leave utilization rate

90% or more

96.4%

99.4%

Note: Figures exclude transportation and medical staff.

such as condolence money and various insurance programs, housing
measures such as company housing/dormitory (only in some areas)and housing allowance (new rent subsidies to replace company
housing/dormitory), property accumulation support measures suchas owned property accumulation savings and an employee stock
ownership association, welfare proxy service, a cafeteria plan, an
employee cafeteria, retirement benefit plans, etc. Details regardingthese systems are reviewed and improved as necessary, taking into
account the current situation and other factors.
Note: With the exception of some systems, non-regular employees are also eligible.

Certified as a Health & Productivity Management
Outstanding Organization 2023 (White 500)
Having been recognized for our philosophy of “Managementthat values people” and health measures for employees, ourCompany has been certified as a
Health & Productivity Management
Outstanding Organization (White
500) for the seventh consecutive
year since 2017.

Major health and productivity management initiatives
As part of the initiatives aiming to raise awareness of healthmanagement and improve self-care skills, the Group holds
exercise and diet seminars and a walking rally, and has
established “non-smoking days.”Moreover, we are working to create an environment thatfacilitates superiors’ support for their subordinates byconducting training on line care for managers, and to enhance
the support system by establishing a consultation desk withindustrial physicians, industrial nurses, and outside counselors.

Welfare system to support employees
We have created an environment in which employees can work
cheerfully with peace of mind by stabilizing the lives of employees
and their families with the following systems: life security measures
Kansai Electric Power Group Integrated Report 2023

Sustaining stable labor-management relations
We have concluded a union shop agreement with the Kansai
Electric Power Workers Union, and have set “company
productivity increases accompanied by improved labor
conditions” as a shared labor-management goal. Based on strong
relationships of trust that we have constructed over our many
years of history, we are building good labor-management
relations. To keep up these relations, we continue to strive formutual understanding by holding management panel discussions
between labor and management as we operate business.
Major opportunities for labor-management communication
Management
panel discussions

Labor and management promote communication in thecorporate management plan, etc. (held annually)

Management
CouncilLabor and management discuss important matters, suchas reorganization (as needed)

Correspondence between labor and management
concerning employee transfer
Under the collective agreement, the Kansai Electric Power Co.,
Inc. and Kansai Transmission and Distribution, Inc. shall, when it isnecessary due to business reasons, transfer their employees fairly
in consideration of their intentions, living conditions, skills, etc.
Especially when it is necessary to make a wide-ranging transfer,
criteria for the transfer shall be discussed with the Workers Union.

Efforts to eliminate industrial accidents

About the Kansai Electric Power Group Code of
Conduct for Safety
Based on the President’s Declaration: “Ensuring safety is my
mission, and the mission of the Company” and applying thelessons learned from the Mihama Nuclear Power Station Unit
3 accident, we are continuing with the implementation ofsafety efforts that put preserving the safety of every person
involved in our Group’s business activities first.
Inherent in the beliefs expressed in this declaration, we
share “our beliefs about safety” as an everlasting group-wideprinciple to raise awareness of safety under the Kansai ElectricPower Group Code of Conduct for Safety. Additionally, bypracticing safe actions based on the Safe Action Declaration,
we will steadily accumulate achievements in safety andcultivate an unwavering culture of safety.

PDCA of safety activities
To ensure safety for everyone related with our Group andachieve our unchanged goal, or “zero accidents,” we areworking to maintain safe working environments and prevent
accidents from occurring and reoccurring through activities
that mobilize the capacities of our organization with the fullparticipation of employees. Concretely, we analyze the detailsof accidents that occur each year, communicate with
employees and subcontractors to understand their awarenessand perceptions of safety, and based on the actual situation,
we hold discussions among relevant internal departments,
including management. In addition, together with the labor
union, we prioritize items to address in the next fiscal year andare engaged in activities on a group-wide basis.
We will seek continuous improvement by running the
PDCA cycle of safety activities in each fiscal year. We will also71

Kansai Electric Power Group Overview

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share prioritized items to address with our group companies,
thereby further enhancing the effectiveness of safety
activities.

Specific safety efforts
Efforts in safety education and acquisition ofknowledge from outside the Company

Prioritized items in safety activities for fiscal 2023:① Create a safe and secure working environment at eachbusiness site.
②M
 ake it a habit to think safety and act safely based on
danger prediction.
③ Promote safety activities based on bilateralcommunication with subcontractors, etc.
④ Practice safe driving behavior by all drivers andpassengers as a unified effort of the workplace.

To raise awareness of our employees and protect thecolleagues of subcontractors and others, we provide
education for each employee to practice autonomous safety
activities. In addition, we learn new things throughout ourgroup companies in lectures and in training programs on
safety led by external experts, thereby increasing the level of
our Group’s safety activities.
As a result of these efforts, our accident frequency rate islower than the national average.

Accident frequency rate*1 trend

Bilateral communication with subcontractors and others

Average among all national industries
Group companies*

(%)
2.0

1.83

1.80

Kansai Electric Power Co., Inc. and Kansai
Transmission and Distribution, Inc.

1.95

2.09

2.06

1.5
1.0

0.67

0.49

0.5
0

0.84

0.69

0.43

0.42

2018

2019

0.28

0.29

2021

2022

When the opportunity presents itself, our employees visit
equipment construction/maintenance sites and are active increating and enhancing opportunities to communicate with
subcontractors, etc. so that we can deepen mutual
understanding and promote safety activities together. By
proactively facilitating bilateral communication, we are
striving to raise safety awareness and reduce the risk ofaccidents.

0.28
2020

Posters encouraging “Think safety and act safely”

Initiatives to prevent similar accidents*1 The number of casualties with at least one day of absence from work due to occupational
accidents per million total working hours, which indicates the frequency of accidents.
*2 Average values of our three representative group companies undertaking major
construction projects have been adopted.

Bilateral communication with subcontractors andothers

Efforts to make it a habit to think safety and act safely
With specific time periods set for accidents that have occurred
frequently in recent years or that have been caused byseasonal factors, we roll out group-wide campaigns to prevent

Kansai Electric Power Group Integrated Report 2023

these accidents, thereby stimulating safety activities at all
workplaces.
■ Summer Health and Safety Campaign: Preventing
summer-specific accidents with a focus on preventive
measures for heat stroke■ Zero Winter Accident Campaign: Preventing winterspecific accidents focused on falls and traffic accidents
due to natural factors such as snow and frozen ground■ Month to strengthen prevention of “Fall and Fall down”:
Focusing on the frequent occurrence of underfoot
accidents, this campaign is implemented in May, when
the number of construction operations increases, toprevent accidents from occurring.

We are implementing measures to prevent similar accidents
from happening by promptly informing related divisions of
the details regarding accidents. In particular, as for designatedsevere accidents, we swiftly provide information to related
divisions through preliminary accident report meetings andaccident liaison meetings. Our initiatives, which include
investigation into causes, reviewing rules, and communicatingwith workers from their point of view, help employees
practice acting safely.

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Energy Business
Overview

Koji Inada
Director
Representative Executive Officer,
Vice President

Business environment

In an effort to keep up with changes in society, we, as Japan’s
leading company focusing on zero-carbon energy, are making
the most of renewable energy for use as main power source,
maximizing the use of nuclear power and opting for zerocarbon power sources, including zero-carbon thermal power
generation and zero-carbon hydrogen utilization. At the sametime, we are committed to mobilizing our resources to help
customers and society realize zero-carbon operations byproposing and providing optimal solutions, examining anddemonstrating approaches to create a hydrogen-driven society.
In addition to establishing a system of seven nuclear reactors
with a primary focus on safe and secure operation, we will
create a competitive power source portfolio, rationalize fuelprocurement and supply-demand balancing, and promote theintroduction of DX-based monitoring and maintenance. All ofthese are designed to improve the cost structure reform andachieve targets set in the Medium-term Management Plan.
New energy and environmental markets, meanwhile, will be
developed and new values will be provided through various
solutions to further boost profits.
Medium-term Management Plan Targets
Ordinary income

More than
130 billion yen

Opportunities●●

Create new business opportunities in new and peripheral
areas in energy and environmental businesses by acceleratingsocial change: the 3D + D* movement.
Acceleration in decarbonization and improvements ingovernment policies and institutions• Sustainable use of nuclear power generation is specified in
the cabinet-approved Basic Policy for the Realization of GX• Introduction of an auction system for long-term
decarbonized power sources* 3D+D: Decarbonization, Decentralization, Digitalization plus Denka electrification
Risks●

While fuel prices increased sharply after the beginning of theconflict in Ukraine, high market prices are currently reaching aplateau, appearing to trend downward, with market volatility
increasing.

LNG market trends($/MMBtu)

JKM

JLC

60
45
30

Surplus15-27.4 billion yen

2021-2023

2025

2022

ROA

Kansai Electric Power Group Integrated Report 2023

2021 result

2022 result

1.23%-0.04%

0

4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 (Month)
2021
2022
2023

Notes:
JKM: Japan Korea Marker. Platts JKM assessment spot price for LNG referenced in
Northeast Asia.
JLC: Japan LNG Cocktail. Japan’s average LNG import price.

73

Kansai Electric Power Group Overview

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Energy BusinessBusiness environment

Business strategies

Crude oil market trends($/bbl)Directions to
take

140
112
84

❶ Promote thorough cost structure reform to restore profitability in the energy business.
❷ Work toward realizing “zero-carbon power sources” including zero-carbon thermal power, nuclear power
and renewable energy, as well as verifying and demonstrating hydrogen energy utilization.
❸ Provide new value through various solutions to increase profitability, while promoting electrification or
Denka.

5-year Efforts

56
28
0

Business Overview

1 Restoration of profitability
4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 (Month)

2021

2022

2023

Cost reduction• Build a competitive power source portfolio (rationalization of
low-operating power sources).
• Optimize power source operations including fuel andelectricity market transactions, and minimize procurement
costs.
• Promote introduction of a digital technology-based
surveillance and maintenance system.
2 Zero-carbon power sources/hydrogen
Nuclear power• Ensure operation of all seven reactors in our nuclear power
plants in a sophisticated manner with safe and secure
operations as a basic premise.
• Conduct technical studies of next-generation successor
models with an eye on replacement, as well as surveying
HTGRs and SMRs.
• Promote the nuclear fuel cycle.
Renewable energy• Work on new development projects with a focus on offshore
wind power.
• Improve existing hydropower plants.
Thermal power• Conduct technical studies and cooperate on zero-carbon fuel(hydrogen/ammonia power generation) co-firing and CCUS,
etc. in the “carbon recycling technology hub.”Kansai Electric Power Group Integrated Report 2023

Hydrogen• Conduct technical studies and demonstrations for building ahydrogen supply chain in the “hydrogen utilization
technology hub” and other purposes.
3 Solutions
Provide new value to meet diversifying customer needs for
new lifestyles, zero-carbon emissions, improved resilience, etc.
Household customers• Provide services combining energy with electric appliances,storage batteries, etc. and platform services beyond energy.
Corporate customers• Provide total support to on-site renewable energy powersources, zero-carbon menus, etc. aiming to achieve zerocarbon.
Communities/e-mobility• Provide community energy management services to improve
resilience.
• Provide package services related to electric mobility.

74

Kansai Electric Power Group Overview

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Financial and Corporate Information

Energy BusinessInitiatives in fiscal 2022

2 Zero-carbon power sources/hydrogen

1 Restoration of profitability■ Approaches to nuclear power generation■ Rigorous cost structure reforms

Each division is working on a variety of measures, including
cutting down overhead and maintenance costs, to improve
profits by about 90 billion yen in fiscal 2025.

Concrete measures
Streamlining facility inspection procedures using
under-water drones
Conventional inspections, where the submerged parts ofhydropower dam discharge facilities (spillway gate wire ropes)
were visually inspected by divers, are currently performed
using under-water drones; inspection procedures have beenstreamlined, resulting in reduced inspection costs.
Meanwhile, our digital technology, including the use of
these drones, is shared with others through our groupcompanies, contributing to safe and efficient maintenance/
management of infrastructure installation.

Streamlining monitoring inspections using robots andAIA system for monitoring thermal power generation facilities
has been built with AI technology, using robots and sensors.
We have confirmed that the system can detect oil leakage
and abnormal heat/sound from devices at the same or higher
levels than by human inspectors in real time. We aim tofurther improve productivity with this human-digital hybrid
system.

Kansai Electric Power Group Integrated Report 2023

Establishing a system of seven nuclear reactors andcontinuing safe and secure operation

Examples of voluntary safety improvement measures infiscal 2022:
An external power failure detection system voluntarily
installed is in operation to deal with accidents similar to thesingle phase failure (electrical accident) that occurred in the
US.
●

Maximizing utilization, with priority given to safety

Achieving over 40 years of operation

As we are committed to realizing green transformation (GX) toachieve carbon neutrality by 2050, we will maximize the useof nuclear power generation and balance the 3Es (Energy
security, Economy and Environmental conservation;
decarbonization), prioritizing safety.
With the share of nuclear power in the power generation
mix maintained at certain levels, we will continue tocontribute to preserving Japan’s technology and humanresources for nuclear safety.
At the same time, we will proactively engage incommunication with the public, including communities near
the plant sites, an indispensable measure for public relationsin promoting understanding of power plant operations.

In applying for an operation period extension for 40 years
from the starting month, in addition to special inspections
carried out for reactor vessels and other equipment, we havecarried out technical evaluations of degradation from age andconfirmed that the durability and safety of important facilities
could be assured even over an operation period of 60 years.
Mihama Nuclear Power Station Unit 3 restarted in 2021,
complying with new regulatory requirements. It is the first
40-year-old reactor in Japan to be restarted. Takahama
Nuclear Power Station Unit 1 was also restarted in August
2023, to be followed by Unit 2 in September of the same year
(scheduled as of August 31, 2023). Takahama Nuclear Power
Stations Units 3 and 4, meanwhile, underwent special
inspections required for exceeding 40 years of operation, andin April 2023 we applied for an operation period extension for
60 years.

Concrete measures
Promotion of safety improvement measures
Large-scale safety improvement work has been completed tocomply with new regulatory requirements set in accordancewith lessons learned from the accident at the Fukushima
Daiichi Nuclear Power Station; nuclear power plants proven to
be safe are already in operation.
In addition to complying with the new regulatory
requirements, self-imposed safety measures are being
practiced.

Takahama Nuclear Power
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Energy Business

Interim storage facilities
Spent fuels are stored in a spent fuel pool inside power
stations for a certain period of time and then transported to a
reprocessing plant. In case the pool is filled to capacity, thepower station cannot be operated. For this reason, spent fuels
have to be taken out in a planned manner. Installation of aninterim storage facility, in which spent fuels are temporarily
stored, enables the stable operation of power plants into the
future. With the “Plan to promote measures for spent fuel” set
up in 2015, we are working on selecting the candidate sites forinterim storage facilities outside Fukui Prefecture, to be
finalized by the end of 2023 for planned commencement
around 2030.

Communicating with the public, including
communities near the plants
Our communication program includes visiting residents incommunities near the plants, offering tours in-person andonline, holding external events, and participating inpresentation meetings.

Addressing challenges with replacement in mind

Review of options such as next-generation light-water
reactors, high-temperature gas-cooled reactors and SMRs*
Maintaining the share of nuclear power in the power
generation mix at certain levels is key to creating a zero-carbon
society, and inevitably involves new installation, expansion,and replacement. We cooperate with plant manufacturers indesigning next-generation light-water reactors with improved
safety and efficiency in preparation for future replacement
while reviewing possible options such as high-temperature
gas-cooled reactors and SMRs, monitoring the latest
development trends at home and abroad.

* Small Modular Reactors
Kansai Electric Power Group Integrated Report 2023

Concrete measures

Initiatives prioritizing safety

To prevent the lessons of the Mihama Nuclear Power
Station Unit 3 accident from fading away
On August 9, 2004, an accident involving the rupture ofsecondary system piping occurred at Mihama Nuclear Power
Station Unit 3. Based on the President’s Declaration “Ensuringsafety is my mission, and the mission of the Company,” wehave strictly implemented recurrence-prevention measures,with a firm determination that we shall never cause such
accidents. The Nuclear Power Division has established Five
Basic Principles as preventive measures that form part of ourquality policy concerning the operation of nuclear powerbusinesses with safety as the top priority. These measures arerevised as necessary for safety improvement purposes. Making
every August 9th our “Safety Vow Day,” every employee
observes a moment of silence. We are working to cultivate asafety culture in order to implement business managementwith safety as the top priority and prevent the lessons of theMihama Nuclear Power Station Unit 3 accident from fading.

Establishment of a company proclamation:
Commitment to Enhancing Nuclear Safety
In response to the accident at the Tokyo Electric Power
Fukushima Daiichi Nuclear Power Station, we established our
Commitment to Enhancing Nuclear Safety, which clearly states
our idea about nuclear power safety, as a company
proclamation, one of our most important company rules. This
company proclamation underlines our determination to
constantly improve safety in nuclear power generation, whereby
all executives and employees fully understand the characteristics
and risks of nuclear power generation and always remindthemselves of the potential magnitude of an accident, with the
President playing a leading role in making company-wide efforts
to protect local communities, society and environment.

Learning lessons from the accident at Mihama Nuclear Power
Station Unit 3, we place a premium on nuclear safety.
Specifically, the accident at the Tokyo Electric Power
Fukushima Daiichi Nuclear Power Station made us aware that
our understanding and preparedness for risks unique tonuclear power generation were not necessarily sufficient. We,
therefore, established a roadmap to enhance practicing
voluntary and continued measures to improve safety innuclear power generation, with relevant efforts underway.

Boosting the accident response capacity
Comprehensive emergency response drills are conducted at
all nuclear power plants as a precaution in the event of a
nuclear disaster. In preparation for severe accidents beyond
design basis, involving serious cases such as injuries during
accident response, efforts are also underway to further
improve accident response capacity. These specifically include
unscripted drills for participants and quick, appropriate
restoration activities based on continuous improvements
made by previous drills, all designed to prevent accidents
from expanding. At the same time, we are working with five
power companies* and affiliates in West Japan to better deal
with nuclear disasters.

* Hokuriku Electric Power Company, our Company, the Chugoku Electric Power Co.,
Inc., Shikoku Electric Power Co., Inc., and Kyushu Electric Power Co., Inc.

Examples of drills:
We participated in the Nuclear Energy Disaster Prevention
Drill held by the national government, where programs fortask force management, accident control, evacuation ofcivilians, and cooperation with relevant institutions are
performed to respond to potential power failures caused byearthquakes.
“Stress training” programs were conducted for plant task force
●

●

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Energy Businessmembers to help them handle severe accidents where avariety of stressful situations occur simultaneously or insuccession.

Reliable decommissioning processes

Decommissioning status of Mihama Nuclear Power
Station Units 1 and 2 and Ohi Nuclear Power Station
Units 1 and 2
The Company plans to conduct decommissioning over four
major stages taking a total of about 30 years in accordancewith nationwide coordination and fund management by the
Nuclear Reprocessing Organization of Japan*. Currently, stage
2 (dismantling of facilities peripheral to reactors) is underway
at Mihama Nuclear Power Station Units 1 and 2, and stage 1(dismantling of equipment in the turbine building andmonitoring of residual radioactivity) is underway at Ohi
Nuclear Power Station Units 1 and 2. Appropriate measures
are in place for decommissioning, with the highest priority
given to safety.

* To be renamed on April 1, 2024.

■ Approaches to renewable energy

example, we focus on increasing hydropower output anddeveloping solar power, onshore wind power, offshore wind
power, biomass power, geothermal power, and hydropower
plants, and the total capacity of which stands at about 3.83
GW as of the end of March 2023. We will continue to operate
the existing power sources and develop new power sources
to help customers and society achieve zero carbon.
●●

Biomass:
Fukushima Iwaki Biomass Power Plant

Concrete measures
Development status in Japan in fiscal 2022●●

Further developing and leveraging renewable energy
Leading Japan in zero-carbon energy production, our Groupis committed to proactively developing renewable energy
based on its improved development promotion system,
focusing on offshore wind power generation, which has
great development potential. Through investment of a total
1 trillion yen in domestic projects, we aim to develop 5 GW
scale of new development and to achieve 9 GW scale ofcumulative capacity by 2040. On the domestic front, for

Kansai Electric Power Group Integrated Report 2023

Solar power:
Banshu Mega Solar Power Plant●●

In April, 2022, the Group commenced commercial operationof the Fukushima Iwaki Biomass Power Plant, which uses
biomass fuels.
Together with Mitsubishi HC Capital Energy Inc., weparticipated in a solar power project in Nishimuro-gun,
Wakayama Prefecture.
A consortium consisting of the Company, INPEX Corporation,
TODA Corporation, ENEOS Corporation, Osaka Gas Co., Ltd.,and Chubu Electric Power Co., Inc. was certified for the firsttime in Japan for public tender of exclusive occupancy and use
for the offshore wind power plant to be constructed in themarine renewable energy power generation facility promotion
zone off the coast of Goto City, Nagasaki Prefecture.
The Company, Marubeni Corporation, Obayashi Corporation,

Tohoku Electric Power Co., Inc., Cosmo Eco Power Co., Ltd.,
Chubu Electric Power Co., Inc., The Akita Bank, Ltd., OhmoriCo., Ltd., Sawakigumi Co., Ltd., Kyowa Oil Co., Ltd., Kato
Construction Co., Ltd., Kanpu Co., Ltd., and Sankyo Co., Ltd.
jointly commenced commercial operations at the Noshiro
Offshore Wind Farm in December 2022 and the Akita
Offshore Wind Farm in January 2023.
Banshu Mega Solar Power Plant, jointly funded by theCompany and ENEOS Corporation, started commercial
operation in January 2023.
In February 2023, the Company started a business providing
electricity along with environmental value by developing
solar power generation technology for Panasonic Operational
Excellence Co., Ltd. and Hydro Edge, one of our groupcompanies, based on a corporate PPA.

Launching offshore wind power projects in Akita Portand Noshiro Port
We have been working on Japan’s first project for large-scalecommercial offshore wind power plants in Akita Port andNoshiro Port, both in Akita Prefecture, through the special
purpose corporation Akita Offshore Wind Corporation(AOW) and in cooperation with Marubeni Corporation,
Obayashi Corporation, Tohoku Electric Power Co., Inc.,
Cosmo Eco Power Co., Ltd., Chubu Electric Power Co., Inc.,
The Akita Bank, Ltd., Ohmori Co., Ltd., Sawakigumi Co., Ltd.,
Kato Construction Co., Ltd., Kanpu Co., Ltd., Kyowa Oil Co.,
Ltd., and Sankyo Co., Ltd.
The Akita Port Offshore Wind Farm and Noshiro Port
Offshore Wind Farm are operating as scheduled; the former
started commercial operation on January 31, 2023, and thelatter on December 22, 2022, both based on the renewableenergy feed-in tariff scheme. AOW’s offshore wind power
generation is now in full swing, with Akita Port Offshore

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Energy BusinessWind Farm in operation. AOW will control the two wind farms
over the next 20 years, utilizing an operation and maintenancesystem based at Noshiro Port.

Concrete measures
Power plants under refurbishment (FY 2022)
Kurobegawa No. 2 Power Station Unit 3
Before refurbishment 73.6 MW
After refurbishment: 74.7 MW (to be completed in September
2023)
Kasagi Power Station Unit 1
Before refurbishment: 41.7 MW
After refurbishment: 50.8 MW (to be completed in October
2023)
●

●

Left: Akita Port Offshore Wind Farm Right: Noshiro Port Offshore Wind Farm
(Source: Akita Offshore Wind Corporation)

Refurbishment of existing hydropower facilities
Hydropower generation, which has a history of over 100 years,
has been providing clean energy in a safe and stable manner
while co-existing and building mutual trust with local
communities. Leveraging our accumulated expertise inhydropower, we conduct timely maintenance to extend theservice life of facilities, thereby streamlining overall operations.
Refurbishment, for example, is planned for aging power
generation facilities (replacement of water turbine generators)
to further extend the service life, with modern equipment anddesign technology expected to improve their power
generation efficiencies. We will systematically refurbish
existing hydropower facilities, as hydropower is a key powersource that contributes to creating a decarbonized society.

Beforerefurbishment

After
refurbishment■ Initiatives of the thermal power division
Challenge for realizing zero-carbon thermal power
generation system
We are committed to working on various initiatives to realize
the Zero Carbon Vision 2050, specifically by using zero-carbon
fuels (hydrogen for thermal power generation, etc.) andintroducing CCUS technology.

Concrete measures
Acquiring knowledge on the introduction of hydrogen
power generation
Green Innovation Fund Project in the Himeji area
We have been working on feasibility studies since theadoption of the Green Innovation Fund Project*1—Large-scale
Hydrogen Supply Chain Development, which was offered by
NEDO*2 in August 2021. Going forward, after design andmanufacture of the system, we will conduct demonstration of
power generation by co-firing of hydrogen at the gas turbines
installed at the Himeji No. 2 Power Station and aim to establish
operational techniques that can be used for social
implementation of hydrogen power generation.
Demonstration system process flow
Natural gas
Hydrogen gas carried in bytrailers, etc.
Hydrogengas cylinder

Hydrogengas pressure
control valveＧ
Gas turbines

On-site hydrogen production
using water electrolysis devices*1	The 2 trillion yen Green Innovation Fund, set up by the government for NEDO,

aims to encourage innovation among companies to achieve carbon neutrality by
2050, subsidizing companies for up to 10 years.
*2	New Energy and Industrial Technology Development Organization

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Energy Business

Acquiring knowledge on the introduction of CCUS
CO2 capture technology research
We are supporting NEDO’s project at our Maizuru Power
Station, where solid sorbent system CO2 capture technology
is being tested for treatment of coal-fired emissions*1. The
commissioning run started in fiscal 2022 at testing facilities,
with full-scale demonstrations scheduled in the second half offiscal 2023. The solid sorbent system is potentially a great deal
more energy efficient than its conventional counterparts in
capturing CO2 and is therefore considered promising nextgeneration capture technology.
Demonstrating CO2 mass transport
We are supporting another project from NEDO, also at our
Maizuru Power Station, where research, development, anddemonstrations are underway for CO2 mass transport*2.
Specifically, the project, which involves CO2 liquefaction at the
shipping base, includes 1) R&D related to liquefied CO2 marinetransport technology, 2) demonstrations of 90,000 tonne scale
CO2 marine transport, and 3) marine transport feasibility
studies for CCUS purposes. CO2 marine transport
demonstrations are scheduled to start in fiscal 2024.

Using biomass at existing thermal power plants

Aioi Bioenergy in full-scale operation
We established Aioi Bioenergy Corporation, a joint venturewith Mitsubishi Corporation Clean Energy Ltd., and started
construction work at Aioi Power Station Unit 2 in Aioi City,
Hyogo Prefecture in February 2022 to switch the fuel fromheavy/crude oil to woody biomass and its full-scale operation
started in March 2023. The fuel switch resulted in an output of
200,000 kW, one of the largest biomass exclusive firing
thermal power generation capacities in Japan.

Electrostatic precipitator(converted)[Electric ⇒ Bag filter]

Biomass silo

Pulverizer,
Bunker, PAF*

Conveyor facilities*1	Development of carbon recycling/next-generation thermal power generation

technology / Research and development of CO2 capture technology / Researchon application of advanced CO2 solid sorbents to treatment of coal-fired
emissions*2	CCUS R&D and demonstration project / Large-scale CCUS demonstration in
Tomakomai / Demonstration of CO2 transport / Technological development anddemonstration of CO2 marine transport

Boiler Unit 2(converted)[Burner, etc.]

Berth (converted)* A ventilator that feeds pulverized fuel to burners

Securing procurement of fuelOur ongoing efforts include securing procurement of fuel,improving flexibility in responding to fluctuations in power
demand, and further improving the economic efficiency ofthe operations.
Specifically, our efforts involve diversifying suppliers andpricing systems, and taking part in the LNG value chain fromproduction to receiving of LNG, including upstream (interest
acquisition) and midstream (transportation, etc.) operations,with various business activities underway.
Volatility is increasing in the global fuel market due tostrained international relations in the wake of the Ukraine
conflict. We will thus continue to focus on international affairs
and fuel market trends to secure fuel in a stable and costeffective manner.

Focusing on spot trading for flexible LNG procurementand distribution
We are building information gathering capability andexpertise on flexible fuel trading in Singapore, the LNG
hub of the Asia Pacific region, to accommodatechanges in power demand, etc.
As the LNG market is expanding in sync with
globalization, we have relocated our fuel trading hub
from Japan to Singapore, extending our reach into the
Atlantic region
Atlantic market
to improve andshore up LNG
procurement
Tapping new regions
and distribution
Pacific market
resources.
SingaporeKansai Electric Power Group Integrated Report 2023

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Financial and Corporate Information

Energy BusinessApproaches to hydrogen energy
utilization
Toward the realization of a hydrogen-driven
society

Hydrogen does not emit CO2 when burned andcan be produced from renewable energy, etc. forstorage and transportation, a characteristic ideal
for applications such as power generation,industrial production, and mobility. We are thus
working on various research topics, including thehydrogen upstream/downstream supply chain(from production to transportation, storage, use as
power generation fuel, and distribution) andhydrogen carriers (liquefied hydrogen, ammonia,etc.). We will utilize policy support planned by thegovernment for hydrogen commercialization tocreate a hydrogen supply chain by around 2030,
where hydrogen is imported for storage atdomestic facilities (about 100,000 tonnes as astarter). We are aiming for a 30% share of thedomestic hydrogen market in 2050.
Accordingly, we will pursue every possiblemeans and make further efforts into the future to
realize a hydrogen society, including adoption ofadvanced technology and cooperation withvarious partners to promote hydrogen use incommunities and society at large.

Concrete measures
We are broadly engaged in technical research and public relations activities to realize a hydrogen-driven society, participating in various projects
both on the supply and demand side.
Supply side

Demand side
Hydrogen power generation

Hydrogen procurement(liquefied hydrogen, ammonia, etc.)

Tank

Existing thermal power plant

Overseas procurement
Implementation of a Japan-Australia Project Feasibility Study
for the Creation of a Large-Scale Green Liquefied Hydrogen
Supply Chain(subsidized by the Ministry of Economy, Trade and Industry
in FY 2021)
Signing of a Memorandum of Understanding forcollaboration with Shell and Kawasaki Heavy Industries

Industry
Studies on designing and developing aviable business model of the hydrogenco-generation system*(NEDO research consignment project in
FY 2021 and FY 2022)

H2(Including NH3)

*A system where gas turbines produce andsupply electricity and heat.

Feasibility Study on Establishing a Clean Fuel Ammonia
Supply Chain from Australia to Japan(joint research program with JOGMEC in FY 2021 and FY 2022)

Technical research

Methane

Review of the introduction of ammonia
floating storage regasification units(FSRU) to promote the use of ammonia
Investment in green funds, etc.

H2

Nuclear power plants,
solar power plants, etc.

Public relations activities

CO2

O2

Hydrogen production(through water electrolysis, etc.)

CO separation
and recovery

Carbon recycling(methanation)

Domestic production
Research on hydrogen production and utilization in
the Awaji area, incorporating grid storage batteries(NEDO research consignment project in FY 2022)
Research on hydrogen production and utilization in
Oguni Town, Kumamoto Prefecture, using unutilized
geothermal energy(NEDO research consignment project in FY 2022)

Kansai Electric Power Group Integrated Report 2023

Gasifiers,
dehydrogenation facilities

Demonstration of power generation
by hydrogen at existing thermal
power plant(Green Innovation Fund Project fromFY 2021)

Japan Hydrogen Association (JH2A)
Participation in Kobe/Kansai Hydrogen
Utilization Council

Transportation

H2

Demonstration project to develop acommercial ship propelled by fuel cells
including development of energy
distribution systems(subsidized by NEDO from FY 2021)

NEDO: New Energy and Industrial Technology Development Organization
JOGMEC: Japan Organization for Metals and Energy Security

80Kansai Electric Power Group Overview

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Energy Business

Overseas Energy Business
Overview
We are participating in a total of 22 projects in the domainsof power generation, transmission and distribution across
11 countries. Our first international project was in 1998 when
we participated in the San Roque Hydropower Project
located in the Philippines. This made us the first Japaneseutility to participate in an overseas electric power project.

Utilizing our overseas bases including New York,
Amsterdam, and Jakarta, we aim to expand our overseas
energy business so it can continue to grow as a key
cornerstone of the Group’s overall earnings.

Power generation capacity by investment ratio(as of the end of April 2023)

2.852 GW

Overseas power projects (as of the end of April 2023)

22 projects in 11 countries
Business environment● Thermal power generation● Hydropower generation

Finland:
Piiparinmäki
Onshore Wind
Farm Project● Wind power generation■ Interconnector■ Distribution /Retail sales service

Overseas offices• New York• Paris• Amsterdam• Jakarta

U.K.:
Moray East
Offshore Wind
Farm Project

Finland:
Alajärvi
Onshore Wind
Farm Project

U.K.: Triton Knoll
Offshore Wind Power Project
Germany: Borkum Riffgrund 3
Offshore Wind Farm ProjectIreland:Evalair Wind Power Project

Breakdown:
Thermal power: 1.764 GW
Renewable energy: 1.088 GW

NeuConnect
UK-Germany
interconnector

Indonesia:
Gas-fired PowerJV Project
between KEPCO
Group and PT
Medco Power
Indonesia

U.K.:
Electricity NorthWest Limited
Electricity Distribution
Network Operation

Indonesia:
Rajamandala
Hydropower
Project●

Laos: Nam Ngiep 1 Hydropower Project●

The Philippines:
New Clark City Power Distribution
U.S.: St. Joseph Phase II
and Retail Sales Service
Thermal Power Project
Taiwan: Kuo Kuang
Thermal Power Project
Taiwan: Ming-Jian
U.S.:
Hydropower Project
Aviator Onshore
Wind Farm Project
The Philippines: San RoqueHydropower Project
Singapore: Senoko
Thermal Power Project

Australia: Bluewaters
Thermal Power ProjectIndonesia:
Tanjung Jati B Thermal Power Project

Kansai Electric Power Group Integrated Report 2023

Opportunities

U.S.: Hickory Run
Thermal Power Project●

U.S.: West Deptford
Thermal Power Project

Opportunities for profitable businesses increase, particularlyin emerging countries, where energy demand is on the rise.
As the initiatives toward decarbonization accelerate
worldwide, business opportunities increase in the field of
renewable energy.
Advancement in the use of new technology such ashydrogen, storage batteries, and floating offshore windturbines as well as digital technology such as AI and IoT
expands frontiers for new business opportunities.
Risks

●

●

Decline in the business conditions of thermal power projects
due to the further acceleration of global decarbonization.
Risks where ongoing projects become less profitable due toexternal factors such as international instability, economic
slowdown, policy changes, market fluctuations, and climatechange.

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Kansai Electric Power Group Overview

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Energy BusinessBusiness strategies
1 Zero carbon• Focus on IPP projects mainly in the field of renewable energy.
• Participate in transmission and distribution businesses that

Onshore Wind Farm Project (Finland) and Borkum Riffgrund 3
Offshore Wind Farm Project (Germany)
We are committed to creating a zero-carbon society,leveraging development expertise originating from ourenergy business.

contribute to power grid stabilization when large-scale
renewables are introduced.
• Participate in businesses utilizing new technologies such ashydrogen, storage batteries and floating offshore windturbines.

San Roque Hydropower
Project

3 Increase profitability

2 Solutions

Piiparinmäki Onshore
Wind Farm Project• Support the reduction of energy costs and the environmentalload.

2 Solutions

stations by combining AI and IoT with our technologicalstrengths.

A loan agreement was signed in fiscal 2022 for the UK-German
power link NeuConnect Interconnector Project, followed bycommencement of construction. We are engaged in thisproject, capitalizing on our technical expertise in installationof extra-high voltage direct current transmission lines, etc. In
the Philippines, meanwhile, the San Roque Hydropower
Project underwent an overhaul, where we provided technicalassistance to employees at the local operating company. The
first overhaul has been completed without any accidents or
injuries. We continue to provide solutions using ourtechnological strength and expertise.

• Support the planning, construction and operations of power

3 Increase profitability• Asset portfolio reclassification.
• Apply feedback from overseas operations to domestic
businesses.

• Enhance risk management capabilities.
Concrete measures

Our international business covers Asia, Europe, and North
America, expanding operations in the electric business,
including thermal/hydro/wind power generation and powertransmission/distribution. We will continue to increase thevalue of our assets by participating in new projects andrestructuring our asset portfolio through divestment ofprojects for which the purpose of participation has beenachieved. Being ahead of other Japanese companies inparticipating in offshore wind power projects, moreover, we
are incorporating the knowledge we obtained into ourdomestic business. Our other efforts include dispatching
personnel to projects and footholds abroad to keep track ofchanges in international relations and other conditions related
to business and to optimize business operations, thereby
improving risk management. These efforts are expected toboost the profitability of our operations.

1 Zero carbon
Three projects in which we participate completed theirconstruction and started commercial operation in fiscal 2022:
Triton Knoll Offshore Wind Farm Project (UK), Moray East
Offshore Wind Farm Project (UK), and Piiparinmäki Onshore
Wind Farm Project (Finland). Another two projects are underconstruction, gearing up for commercial production: Alajärvi

Kansai Electric Power Group Integrated Report 2023

Loan agreement signed for
the UK-German power link
NeuConnect Interconnector
Project

Triton Knoll Offshore
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Transmission and Distribution Business
Overview

Takayuki Hakugin
President and Director
Kansai Transmission andDistribution, Inc.

Business environment

Kansai Transmission and Distribution, Inc. took over the general
power transmission and distribution business of the Kansai
Electric Power Co., Inc. in April 2020 to further ensure neutrality
in the transmission and distribution business. Kansai
Transmission and Distribution, Inc. is committed to providing
affordable electricity in a stable manner while placing apremium on being fair and neutral. Its operations include
managing power grids, and planning and constructing
transmission, transformation, and distribution facilities.
As energy needs in society (decarbonization, greater
resilience, etc.) become increasingly diversified, powertransmission and distribution business takes on a greater rolein meeting such needs. We will therefore develop nextgeneration grid networks to flexibly meet the diversified
needs of grid users (distributed power sources, etc.), andprovide proven, reliable grid services, thereby meeting the
expectations of customers and society.
Medium-term Management Plan Targets
Ordinary income
More than
50 billion yen on
average

More than
50 billion yen

●

●

●

The cost in striking a balance between demand and supply
increased significantly in fiscal 2022 due in part to a surge infuel prices.
Financing is available for developing next-generation grid
networks that contribute to decarbonization and greater
resilience, with the new wheeling charge system in place in fiscal
2023. Follow-up adjustment, meanwhile, reduces risks associatedwith demand fluctuations and supply-demand balance. There isthus a growing need for the power transmission and distribution
business to improve its sustainability.
As power transmission and distribution operators arereviewed and compared with one another for their charging
schemes, we must implement cost structure reforms to be anindustry front-runner while reducing wheeling charges.
Opportunities

●

●

●

●

Financing available and profits arising from greater efficiencies
secured with the new wheeling charge system in place
Diversified customer energy needs and transactions
Progress in electrification, driven by decarbonization
Expansion of energy-related business at home and abroad
Risks-45.1 billion yen●

2021-2023

2025
●

●

2022
●

ROA

Kansai Electric Power Group Integrated Report 2023

2021 result

2022 result

0.58%-1.41%

Power transmission and distribution operators reviewed andcompared with one another, with the new wheeling charge
system in place
Rising fuel prices and tightening supply-demand balance
Declining grid demand due to the development of distributed
resources
Intensified natural disasters and possible earthquakes in the
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Transmission and Distribution Business

Kansai Transmission and Distribution Group Vision
The Kansai Transmission and Distribution Group Vision has
been established to envision the path toward 2050. We arecommitted to improving and expanding Kansai network
facilities, our group’s human resources and technologies, andplatforms serving customers and society, thereby providing
stable electricity, creating new value that goes beyond
expectations, and better serving customers and society.
As an entity that supports the entire energy industry inaddition to transmitting and distributing electricity, we
are also committed to serving as an “energy platform,”
expanding our services from providing electricity tocreating new value for customers and society.

Data platform
Utilize accumulated
data to provide various
forms of value, including
optimized energy use• Control distributed resources• Visualize equipment
information and optimize
operation• Utilize data to provide
new value

Facility platform
Provide energy consistently invarious forms to meet
expectations and make life more
comfortable and convenient• Provide EV charge anddischarge services• Realize robust electricity
distribution through distributed
grids• Provide non-contact power
feeding services• Charge wirelessly via smart poles

Kansai Electric Power Group Integrated Report 2023

Business strategies

Directions totake

We will pour resources into two businessareas with wheeling business, one of ourcore businesses, positioned as the “wheelingdomain,” and domestic and overseas
business, expanded by utilizing our groupstrength, as the “expanded domain.” At thesame time, we will create a “businessfoundation” to support these two areas.

1 Wheeling domain
Leading the industry in pursuing decarbonization andstrengthening resilience
We will create a system to provide new value, taking into
account the needs of customers and society, such as
developing next-generation networks and implementing cost
structure reforms to be an industry front-runner.

Transaction platform
Create a platform fortransactions, includingtransactions involving
unknown new value inenergy• Account management
services• Transaction matching
services• Transactions involving
value that goes beyond
electricity

Human platform
Communicate withcustomers and society
and update corporate
resources such as humanresources and technology
to meet expectations• Provide comprehensive
facility services• Collect stakeholders’needs and meet their
expectations

5-year Efforts
Basic premise of our business operations• Doing business with integrity, beginning with compliancewith laws and regulations• Recreate a fair basis for competition• Create a robust safety culture
1 Wheeling domain• Create next-generation networks (decarbonization andgreater resilience)• Implement renovation for aging facilities• Implement cost structure reforms to be an industry
front-runner
2 Expanded domain• Create new value in power transmission and distribution
business

2 Expanded domain• Establish other sources of revenue

Establishing a primary source of revenue, following
wheeling businessWe will roll out initiatives and services at home and abroad,going beyond the boundaries of wheeling business.

3 Business foundation

3 Business foundation
Creating an organization where exploration and ambition
in providing new value is taken as matter-of-fact
We will develop an organizational culture to aim for more
ambitious goals and implement innovative operational
reforms, emphasizing Kaizen (the Toyota production system)
and DX.

• Promote Kaizen and DX, innovate the organizational culture• Strengthen human resources and support various workstyles• Contribute to local communities (to win understanding andconfidence)• Strengthen the financial bases

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Financial and Corporate Information

Transmission and Distribution Business
1 Wheeling domain

Initiatives in fiscal 2022

Learning lessons from a serious violation of the Electricity
Business Act (power producer and supplier data breach, etc.),
we have strengthened our system to comply with laws andregulations. Specifically, the president, appointed as the chiefcompliance officer (CCO), controls compliance and behavior
issues, with directors in charge of compliance in place. In
addition, the Compliance Promotion Division was set up to
run day-to-day operations under the direct control of thepresident, where compliance and behavior issues are centrally
controlled. Moreover, we will create a framework for checking
compliance and systems by incorporating external
perspectives to make control more effective.

Annual duration of power outage per household(minutes/household)
400

External
Internal Auditing experts,
etc.
Department

Headquarters

System Audit Group

Compliance Promotion
Division

Conduct Regulations
Audit GroupStrengthen the system
check function

DCO and ACO in place*Conduct Regulations
Subcommittee

Investigation, Verification, andReform Committee

Each branch office

External
intellectuals,etc.

Appoint directors in chargeof compliance

External
experts,etc.

* Compliance manager of each department and area. Department: Department Compliance Officer

Over capacity

Distribution line
start end

Allocate powersource cars

Distribution line
terminal end

Power outage areain times of disaster

Distribution system
Distribution substation
DER
Grid information

Grid information

Grid control

DER information
Transmission system DER information
DER system
operators (TSOs),
Resource management,
procurement, operation,
electricity transmission
etc. of DER
and distribution utilities DER control order
DER control order
Place bids

DER information

Grid control

Aggregators(AC/RA)

Mechanisms for DER utilization

Tender bids

Provide new services

Supply-demand Capacity market Wholesale electricity
adjustment(Broad areatransaction market …
market (TSO)
institution)(JEPX)• Avoid controlling output of energy-saving
operators• Avoid imbalances, etc.

Upgrading grid distribution networks
200
Due to Typhoon No. 12

0President

voltage
Lower limit for
appropriate
voltageStrengthen resilience
Municipalities, companies with
EV fleets, etc.

Due to Typhoon No. 21

Board of Directors

Board Meeting

limit for
Voltage control Upper
appropriate

300

100

External
intellectuals,
Neutrality and Fairness etc.
Advisory Board
External
intellectuals,
etc.
Compliance Committee

Peak cut

Our commitment is to ensure the operation of power grids
between power plants and customers, optimize facilities, andprevent and respond quickly to power outages. As a result of
our efforts, with the exception of major natural disasters, weare maintaining one of the world’s highest power quality
levels in the transmission and distribution business.

Framework for legal complianceManagement Audit
Committee

Maintain grid voltage

Peak shift

To provide high-quality electric power

Doing business with fairness and integrity

Appointed COO

Avoid grid congestion
Current
Hour

Basic premise of our business operations

Audit &
Supervisory
Board Member

Business Overview

7
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22(FY)

DER flexibility platform
Developing a stable electricity system by utilizing the value of
distributed energy resources (DERs) is critical to achievingcarbon neutrality by 2050. We, therefore, will continue todevelop technology for incorporating DERs into grid
operation to ensure greater flexibility.

We will introduce next-generation equipment to closely
monitor and control the operation status of the grid
distribution networks, thereby dealing with problems arisingfrom the input of massive amounts of renewable electricity,
upgrading the capacity of grid distribution networks toaccommodate more renewable electricity. All of this willcontribute to decarbonization. In addition, we will prevent
power outages by incorporating grid information (gridvoltage/current waveforms, etc.) and develop an early
detection system for power outage causes. These measures
will also contribute to increasing resilience.

(DCO), Area: Area Compliance Officer (ACO)

Kansai Electric Power Group Integrated Report 2023

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Transmission and Distribution Business

Advanced asset management
The number of aging facilities is increasing. These facilities
should be systematically refurbished to ensure safe and stableelectricity supply. Rational and efficient implementation ofrefurbishment, however, requires a comprehensive plan thattakes into account facility risks, refurbishment costs,
construction capabilities, etc.
We will develop and verify a system to map out a plan
based on investment value evaluation, with efforts underway
to upgrade our asset management.

Looking ahead

Condition Based Maintenance (CBM)
Current:
Conducted based on facility conditions
observed during monitoring, inspection, etc.

Value
Risk

Time Based Maintenance (TBM)
Current:
Conducted according to scheduled plans

Condition
Breakdown Maintenance
(BM)
Past:
Conducted retroactively to deal
with facility failures andabnormalities

Investment value evaluation
Facility risk assessment
Looking ahead:
Quantitatively assess facility
risksInterval
FailureCurrent

Technologicalinnovations

Kansai Electric Power Group Integrated Report 2023

Future:Evaluate investment returns

Experience,hunch

Oil analysis,
temperature sensor,
vibration sensor, etc.

Tablets, image
analysis,Smart meters, partial drones, etc.
discharge analysis,
mapping, etc.

AI or 5G,
next-generation
distribution,
automation, etc.

Emergency response system for disasters, etc.
We designate initial responders and have initial response
supervisors put on night watches to prepare for quickly
setting up the response system in case of emergency. In
addition, special training drills are conducted several times ayear for both initial response supervisors and initial
responders.
Moreover, the Kansai Electric Power Group comprehensive
emergency response drills are conducted every year. We arecommitted to improving our disaster response skills andraising disaster awareness, not only to prepare for theoccurrence of the Nankai Trough Earthquake but also withconsideration for severe incidents such as the simultaneous
occurrence of a nuclear power disaster or during occasions
when the balance of power supply and demand is tight.
Furthermore, in line with the disaster cooperation plan, we
will cooperate with general power transmission anddistribution utilities and relevant authorities in times ofdisasters to quickly recover and restore electricity facilities andsystems for stable supply of power.
Number of participants in group-wide
comprehensive emergency response drills(fiscal 2022)

1,002

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Financial and Corporate Information

Transmission and Distribution Business

Implementing cost structure reforms to be an industry
front-runner
A cost reduction of 55.1 billion yen/year expected formeasures discussed before fiscal 2022 is incorporated in thebusiness plan submitted to the government in accordancewith the new wheeling charge system. We will make thesemeasures a standard practice to start with. At the same time,
we will implement cost structure reforms in all areas,
incorporating external knowledge, to be a front-runner inpower transmission and distribution operation.

each other in providing financial institutions with services toprevent fraudulent account creation, with the former’s
proprietary information on power facilities combined with thelatter’s fraudulent access detection system.
In addition, we are incorporating electric facility
information to provide new services for continuous customer
management designed to streamline management of existingaccounts for financial institutions. These services will help
prevent crimes, including money laundering.
Overview of services leveraging information on electrical power
facilities to prevent fraudulent account creation
New account creation

2 Wheeling/expanded domains
Upgrading and reforming power transmission anddistribution business
The structures of electricity systems are changing, with
distributed resources increasing and users beginning toparticipate in the market, and we will develop a businessstrategy designed to upgrade and reform our powertransmission and distribution business to become moresustainable and continue growing. Accordingly, we haveestablished a Frontier Lab, which is tasked with research andanalysis of future trends and exploration and implementationof new initiatives, all under the direct control of the president.
3 Expanded domains
Services to prevent fraudulent account creation,leveraging information on electrical power facilities
Fraudulent accounts using “stolen identities” are often abusedfor criminal purposes such as money laundering, which is
becoming a public concern. Kansai Transmission andDistribution, Inc. and Caulis Inc., therefore, collaborate with

Kansai Electric Power Group Integrated Report 2023

“sustainability promotion.” In fiscal 2022, for example, we wereawarded three consulting projects in three countries,
including Nigeria and Lebanon.
Kansai Transmission and Distribution, Inc., meanwhile, islooking at investing independently in overseas projects tofurther boost its earnings.

❶
Banks, credit card companies, etc.
Spoofing
or not?

❷Meeting with the president of AEDC (a local power distribution company)

Aha!

Authentication of
the person creating
an account❸Authentication results(API automated response)

4 Business foundation
Promoting Kaizen and DX

Developing and providing
fraudulent access detection services

Database

Data extraction
Spoofing detection services leveraging information onelectrical power facilities

Expanding overseas operations
We are extending our reach worldwide, focusing on“expansion of earnings,” “technological contribution,” andWe implemented 197 Kaizen projects in fiscal 2022 to create a
new organizational culture that aims to improve productivity.
Specifically, we eliminated waste and conducted afundamental review of work procedures, which resulted in
drastic improvements in productivity and added value.
As part of the DX initiative, moreover, we incorporated
AI-based image analysis to streamline facility patrols anddevelop a management system, which upgraded on-site andmanagement operations.
We will implement operational reforms through Kaizen
and DX, specifically by further pursuing Kaizen, introducing
innovative technology and utilizing digital technology.

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Financial and Corporate Information

Information and Telecommunications Business
Overview

Makoto Araki
Director
Representative Executive Officer,
Vice President

Risks

Arranging an extensive menu of options that respond to
customer needs, we provide comprehensive IT services led by
OPTAGE Inc., our group company, for households andbusiness firms utilizing AI, IoT, and other digital technologies.
Our Group’s IT business has been growing as a primarysource of revenue along with the comprehensive energy
business through its strengths in both tangible aspects, suchas its tightly woven optical fiber networks extending
throughout the Kansai region, and intangible aspects, such as
our high-quality service and robust support system, earning ahigh degree of customer satisfaction over a long term.
Medium-term Management Plan Targets
Ordinary income
43 billion yen

More than
35 billion yen on
average• Changes in competitive environment caused by new entrants• Changes in business structure with the emergence ofinnovative new technologies• Intensifying price-cutting competition
Business strategies

Directions totakeMore than
45 billion yen❶ Demonstrate overwhelming
competitiveness in information andcommunication infrastructure services in
the Kansai region, and increase profits.
❷ Promote provision of high value-added
services and creation of new solutions
that contribute to increasing the valueof information and communication
infrastructure services as well as
operating outside the Kansai region.

5-year Efforts

Customer satisfaction ranking No. 1
for 16 years in a row
No. 1 provider in the Kinki region in the RBB TODAY
Broadband Awards 2022 (announced in January 2023)
Awarded for 16 consecutive years from 2007 to 2022

Low-Cost SIM Awards in the 2022 2nd Half
Won the highest overall satisfaction rate
Source: RBB TODAY“2022 2nd Half Low-Cost SIM Awards”

1 Increase profitability
2022

2021-2023

2025

Business) unique community-based services.

ROA

2021 result

2022 result

12.06%

13.21%

Business environment• Develop next-generation data centers.
• Provide Group assets (optical fiber, station buildings,
transmission towers, utility poles, etc.) toward the spread of
5G communications.
2 Solutions

Opportunities• Provide IoT and high value-added solutions centering on the• Growing need for high-speed and stable communication• Provide new solutions to respond to the needs of cloudagainst the backdrop of video viewing, remote work, etc.

Kansai Electric Power Group Integrated Report 2023

• Provide eo’s ultra high-speed services and mineo’s (Personal /5G core network.

computing and DX.

• Growing needs for business efficiency and automation, with

• Set up new green data centers and promote green power

the acceleration of DX promotion

source procurement.

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Financial and Corporate Information

Information and Telecommunications BusinessInitiatives in fiscal 2022
Consumer services
eo Optical services, offered by the group company OPTAGE
Inc., are FTTH services utilizing a proprietary high-speed,
reliable optical fiber network spreading all over Kansai, andhave established the largest market share in the Kansai region
for detached houses. Their bundled service package of eo
Optical Fiber Internet, eo Optical Fiber Telephone, and eo
Optical Fiber Television is a major contributor to revenue
growth in our IT business.
In fiscal 2022, “eo Optical 10/5 GB Services” became
available in almost all areas with Optical Fiber Internet, andwith the growing demand for high-speed internet, the service
has been chosen by approx. 60% of new subscribers, driving
the growth of the company’s FTTH services even amid market
maturity.
Number of “eo Optical” subscriptions:

1.71million
Customer satisfaction ranking

No. 1for16 years in a row

services to keep customers satisfied in accordance with theirvarying needs, so its services will continue to be chosen bymore and more customers.

OPTAGE also offers the cell phone service mineo, which
was launched in 2014 nationwide and has more than 1.2 million
subscribers in the MVNO industry, crowded with more than
1,000 companies. It offers original value through “co-creation
with fans” mainly on a community website, as well as low
prices and unique services not offered by other providers. In
fiscal 2022, in order to meet customer expectations, newmenus and enhanced functions were added to mineo,
including the introduction of a new course to “Maisoku,” anunlimited data plan, and the launch of the eSIM service. These
one-of-a-kind services have been successful in steadily
expanding the customer base.
The values unique to mineo, “co-creation with fans,” will befurther enhanced to provide services to as many customers as
possible.

Services for corporate customers
As services for corporate customers, in addition to fiber-optic
internet services for enterprises, extensive services areprovided covering consulting, system development, cloudcomputing, AI/IoT, etc. Line services in which OPTAGE has anadvantage and solution services combined with the provisionof lines are chosen by many customers.
The number of subscriptions to its line services continued
to grow steadily in fiscal 2022, and the company has satisfied
diverse customer needs by providing one-stop support forline, cloud, security, and operation.
Additionally, in response to the growing need for data
centers that can communicate with cloud services, etc. withlow latency and excellent connectivity, OPTAGE has decided
to develop a connectivity data center in Kita-ku, Osaka(scheduled to start operation in fiscal 2025). Through this andother projects, the company is also taking on new challenges
toward sustainable growth.

No. 1 provider in the Kinki region in the RBB TODAY
Broadband Awards 2022 (announced in January 2023)
Awarded for 16 consecutive years from 2007 to 2022

Number of “mineo” subscriptions:

Moreover, focusing on creating new services to help
customers to live more affluent lives and to further promote
the smart home IoT business, the company has launched“IOPT,” a service that enables home appliances to be operated
by apps or voice and connected to sensors.
OPTAGE will continue to provide infrastructure services
that form a basis for comfortable living and develop quality

Kansai Electric Power Group Integrated Report 2023

1.25 million

Low-Cost SIM Awards in the 2022 2nd Half

Won the highest
overall satisfaction rate

Source: RBB TODAY “2022 2nd Half Low-Cost
SIM Awards”
Rendering of OPTAGE Sonezaki Data Center

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Financial and Corporate Information

Life / Business Solution Business
Overview

Risks

In addition to comprehensive real estate services (leasing,condominium sales, property management, leisure, etc.), we
provide wide-ranging services for both individuals (healthcare,etc.) and businesses (contact center, etc.) to provide support
for their everyday and business needs.

Makoto Araki
Director
Representative Executive Officer,
Vice President

Medium-term Management Plan Targets
Ordinary income
20.9 billion yen

2022

More than
30 billion yen

More than
15 billion yen on
average2021-2023• Delay in acquisition and development of new properties due
to intensifying competition for property acquisition• Sluggish real estate market resulting from sharp economic
deterioration• Damage to real estate value due to lower profitability ofproperties• Intensifying competition with our industry peers
Business strategies

Directions to
take

2025

Note: Including extraordinary gains/losses in the real-estate business

ROA

2021 result

2022 result

2.63%

2.81%

Business environment
Opportunities• Robust demand for condominiums, office spaces, and leasing• Increased business opportunities with the promotion of big
projects such as attracting IR to Yumeshima and the Osaka
Kansai Expo
• Increased business opportunities brought by advances indigital technology, etc.
• Increased outsourcing by enterprises due to labor shortages
as the aging of society and the declining birthrate progress• Improved health awareness in pace with longer healthy life
expectancy❶ Engage in comprehensive real estatebusinesses to meet all real estate needs
with a well-balanced combination of
condominium, leasing and fee
businesses, aiming to increase profit.
❷ Besides real estate, in highly
competitive businesses where we canleverage our Group’s strengths, aim toprovide high value-added services
seeking further increases in profit.

5-year Efforts
1 Real estate business• Promote business focused on asset management by making
effective use of funds such as REITs.

• Enhance services for condominiums according to life cycle,
such as interior fittings and furnishings, renovations,brokerage and relocation.
• Find and strengthen medium- to long-term redevelopment
projects, etc. through activities related to CRE (corporate realestate) solutions.
2 Other than real estate• Provide diverse health checkup services that incorporate
advanced testing technologies.

• Provide customer call center services based on digitaltechnologies and high-level know-how.

• Expand service bases
Kansai Electric Power Group Integrated Report 2023

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Medium-term Management Plan

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Foundation to Support Value Creation

Financial and Corporate Information

Life / Business Solution BusinessInitiatives in fiscal 2022
We have made active efforts to increase sales of “CIELIA”
condominiums in the Kansai and capital regions, and haveprovided 5,872 residences with this brand by the end of fiscal
year 2022.

Our real estate business in emerging economies, especiallythose in Southeast Asia, deals with primarily with condominium
development projects, while the focus is on office leasing andcondominium development in Europe, the U.S., Australia andother developed countries. By the end of fiscal 2022, we haveparticipated in 15 condominium development projects in
Thailand, Indonesia, the U.S. and Australia, and 17 leasing
projects in the U.S., Singapore and Australia.
In fiscal 2022, sale of properties in a timely manner
contributed to revenue growth.
Number of projects invested in since the first overseas
real estate business (fiscal 2017) until fiscal 2022

32

KANSAI Medical Net
offers a members-only
health management
support service “Medical
Support System (MSS)”.
Many of the members
are satisfied with thethree “assurances” of“comprehensive medical checkups,” “health support,” and“medical coordination” that we provide.
To further expand our support in the health of customers, weplan to open new medical facilities.
• Nishinomiya Gardens Kenshin Clinic (2023)• Nakanoshima Clinic Ladies Plaza (2024)
Number of KANSAI Medical Net MSS members

2,200

CIELIA CITY Senriyama

Number of “CIELIA” brand residences supplied
Total of condominium units and detached houses withresidential land development completed since starting to
supply CIELIA brand residences (fiscal 2016)
until fiscal 2022

5,872

As part of our zero carbon initiatives, we launcheddevelopment of the CIELIA TOWER Nakanoshima, a ZEH
condominium that realizes “net zero carbon for the entire
condominium,” and the “Kanden Fudosan Shibuya Building,”
which obtained “ZEB Ready” certification at the design stage,
employing a variety of environmentally friendly technologies.
CIELIA TOWER Nakanoshima

BangkokWashington, D.C.

Kanden Fudosan Shibuya Building

Sydney(Building incorporated in fund)Kansai Electric Power Group Integrated Report 2023

Kanden CS Forum is
expanding the amount oforder receipts for customer
contact center operations
from other companies, etc. byutilizing knowledge andhigh-quality services
cultivated through operations
for the Kansai Electric Power Company and its group companies.
Most recently, the company has opened the following contact
centers:• Fukuoka Nakasu Center (December 2022)• Aomori Contact Center (April 2023)
In not only real estate services but also other business areas
where we can take advantage of business experience andstrengths as the Kansai Electric Power Group, we will proactively
incorporate digital and cutting-edge technology to expedite
offering of high value-added services and to expand andenhance healthcare and contact center businesses, aiming fordramatic profit growth as well.

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Message from the Chairman of the Board
The management willtake the lead andremain committed toreforms to make us acorporate group that istruly trusted by society.
Sadayuki Sakakibara
Chairman of the Board■

Governance reform receives a good response,
but reforms still have some way to go

It has been more than three years since I became the Chairman of
the Board at the Kansai Electric Power Company. At the time of myappointment, the Company was under severe criticism from society
due to the cash/gift receiving incident and other problems, and we
found ourselves in a very difficult situation, losing the trust of ourcustomers and society—the most important factor in our business. I
believe that the cornerstones of corporate management aretransparency, fairness, and understanding, and for the past three
years I have been working hard to reform corporate governance,
including strengthening the functions of the Board of Directors.
Active discussions take place at every meeting of the Board of
Directors, which are the linchpin of governance, with eight outside
directors out of 13 directors. In addition, as important issues are
discussed not only at the Board of Directors meetings but also inadvance, and through multiple rounds of discussion, I believe that
this has enhanced communication between outside directors andthe executive officers and led to high-quality discussions at theBoard of Directors meetings.

Kansai Electric Power Group Integrated Report 2023

An evaluation of the effectiveness of the Board of Directors by athird-party organization stated that sufficient discussions are being
undertaken based on medium- to long-term management
strategies, etc., and that the effectiveness of the Board of Directors
has been steadily improving. I believe that highly transparent
management, which values both the shareholder perspective andthe societal perspective, has taken root in the Company.
To make compliance more thorough, we have deployed various
initiatives, including the enhanced training and the strengthened
whistleblowing system, led by the newly established Compliance
Committee under the direct control of the Board of Directors.
Moreover, since assuming the chairmanship, I have visited various
workplaces dozens of times, in many cases monthly, to speak with
employees.
We had been progressing with a variety of initiatives and I
thought our employees’ attitudes toward compliance and ourorganizational culture had been steadily changing, and I felt there
was a level of response to the reforms. However, the recent seriesof improprieties that have occurred in our Group over the past
year has made me keenly aware that our reform efforts are still far
from complete, and as Chairman of the Board, I feel deeply
ashamed.

■Making strong progress in reforms toensure thorough compliance

Although I have sensed an increase in compliance awarenessthrough these past efforts, in the wake of the series of problems, I
sincerely regret that I have not done enough to ensure that all Group
employees think and act on their own when they have some doubts
in the course of their work.
Regarding the issue involving customer information, since the fullderegulation of the retail industry, some employees thought it was
odd that they were able to view competitors’ information; however, fora long time, the issue was never raised. I’m afraid there was a strong
tendency for the employees who were viewing the information toaccept it without having any doubts about what had already been

decided or made into rules, perhaps thinking it was OK because
everyone else was viewing it or simply it was the company’s system.
I’m afraid this is due to the top-down culture that has persisted in
our Group for a long time. To fulfill our mission of providing a stablesupply of electric power, we have traditionally adhered to a topdown culture in which work is carried out in accordance with thedecisions of the superiors and higher organizations in the workplace.
For the safe and stable operation of power stations and otherfacilities, I think there are some aspects in which we must have astrict chain of command and behavior that follows a determined setof rules. However, for the sustainable growth of our organization
under the new business environment such as the full deregulation of
the electricity market and for thorough compliance, we need a
corporate climate in which front-line employees who are familiar
with its operations can openly give their opinions and suggestions
from the bottom up.
Since assuming the chairmanship, I have been very conscious ofthese issues, and through dialogue with employees and many otheropportunities, I have tried to change the organizational culture from
one that is based on top-down to one that is bottom-up. As a result, I
am acutely aware that my efforts have not been enough, and that
more needs to be done.
In view of this series of improprieties, we have compiled abusiness improvement plan, and the entire Group is now working
hard to carry it out. The plan has two major points.
The first is to strengthen internal controls. The Compliance
Promotion Headquarters has been newly established to improve risk
management and other systems, enhance education and training,and strengthen the internal audit function, thereby fundamentally
reinforcing internal controls for the entire Group, including front-line
workplaces.
The second point is to reform the organizational climate. The
Organizational Climate Reform Committee, chaired by the president,
has been established to change the organizational climate from a
top-down culture to one in which all group members, regardless of
position or affiliation, can frankly discuss their own thoughts andfindings.

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I intend to make sure that these new reforms by the executiveside are making solid progress and to aggressively push thesereforms ahead. The Board of Directors will conduct special
supervision (reform monitoring) over the progress of the reforms,
carefully following up on the efforts of the Compliance Promotion
Headquarters and others, and providing advice and guidance on
additional measures and improvement measures, as necessary.
In addition, since assuming the chairmanship, I have visited anumber of workplaces and engaged in dialogue with employees,
and I remain committed to communicating with them to create an
open organizational climate where employees can discuss anything.
The Group will tenaciously pursue these reforms with the aim ofgaining the trust of our customers and society as a whole.

■

Steady progress toward Medium-termManagement Plan goals

Accelerating corporate growth from an externally objective
perspective is also a cornerstone of governance, and an importantrole for me to play. In March 2021, the Company formulated theMedium-term Management Plan to identify the path to achieving
the sustainable growth of the Group. This plan was created after
thorough discussions from the formulation stage with theparticipation of outside directors, including myself.
Despite the continuing severe business environment, the Grouphas worked together to vigorously promote the three key initiativesof the plan, and we are seeing steady results, large and small, in all of
the Group’s business areas.
With regard to the first key initiative, seeking to achieve zero carbon
emissions (EX), by 2050, I believe it is crucial to make effective use ofrenewables and nuclear power, which are non-fossil sources of energy.
In renewables, we are proud to be Japan’s largest producer ofhydroelectric power, and we have also achieved a large number ofsolar and wind power development projects both in Japan andoverseas. In the nuclear energy, we had worked hard Group-wide toestablish a system to operate our seven reactors at our nuclear
power stations since the Great East Japan Earthquake, and with theKansai Electric Power Group Integrated Report 2023

Medium-term Management Plan

Business Overview

recent restart of the Takahama Units 1 and 2, we have been able tobring the system in operation. We will continue to make sustained
use of this important base load power source, placing the highest
priority on safety.
Furthermore, making thermal power generation zero-carbon isanother major issue, and the use of hydrogen energy will be a key
element. We expect that the hydrogen business has great growthpotential in the future, and we are currently working on not only
utilizing hydrogen as a fuel for power generation, but alsoestablishing a hydrogen supply chain to manufacture, transport, andsupply it. We have already begun studying the development ofreceiving and storage facilities in the Himeji area, one of Japan’s
leading industrial centers, and we are determined to fulfill our role asa major player in the coming hydrogen age.
For the second key initiative of transforming into a service
provider (VX), we find that there is a great opportunity to create newvalue and services in our core businesses of energy, real estate, andinformation and telecommunications, as well as in areas aroundthese sectors. Working hand in hand with our business partners, weare actively developing new businesses, including data centers and
VPPs, to meet the various needs of our customers and society atlarge.
As for the third key initiative, building a robust corporate
constitution (BX), we intend to create a strong managementfoundation through thorough cost reductions and the use of digitaltechnology, among other means. Since the beginning of my term, I
have been saying that there is tremendous room for cost reductionin the Company, and while we have already achieved a certain
degree of progress, I will continue to promote creative and inventive
measures going forward.
Innovation is the key to promoting any of these initiatives. I
believe that innovation is not limited to the creation of new
businesses and services, but also includes innovative changes in all
aspects of business, such as technology, organization, and work
processes. In order to achieve sustainable growth amidst thecontinuing challenging business environment, we need to fully
mobilize the power of innovation from all members of the Group.

Foundation to Support Value Creation

Financial and Corporate Information

As part of this effort, in July 2023, we integrated the R&D functionthat is involved in technological development and the innovation
function that creates new businesses, and we built a system toaggressively promote innovation in an integrated and dynamic
manner.
We at the Group will further accelerate our efforts in the three key
initiatives of EX, VX, and BX, and consistently achieve the goals set
forth in the Medium-term Management Plan, by implementing
Group-wide innovation.
Additionally, it is essential for us to look further into the future than
the five-year period covered by the Medium-term Management Plan,
and also to stay ahead of the curve toward the achievement of ourvision for each of our businesses as we take into account changes insocietal conditions and technological trends. We will continue to takeup the challenge of achieving even greater growth for our Group.

■

In the spirit of our second founding,the Kansai Electric Power Company will
once again shine brightly

The 1960s and 1970s were a valuable time for us as the very futureof the Company was staked to build the Kurobegawa No. 4 Power
Station (known as Kuroyon) and we became pioneers in thedevelopment of nuclear power in Japan. I believe it was during thisperiod that we developed the indispensable spirit of boldly taking up
challenges of achieving lofty goals and working together in unity torealize them.
It is no exaggeration to say that our second founding period is at
hand now that we are facing these headwinds. We will once again
revive the spirit that has been passed down to us from our predecessors,
and regain the trust of society to become a truly reliable company. As
we face new challenges and difficulties, we have resolved to make thenext leap forward with the strength of all members of the Group.
Although my position and role differ from those of the executive
officers and employees, I will continue to do my utmost to restore theKansai Electric Power Company to its former glory.

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Message from the Outside Director

Takamune Okihara
Director
Member of the Nominating
Committee
Member of the Audit
Committee■ A review and prospects for the future

Since the cash/gift receiving incident and other problems,
the Company has been taking various actions, including
governance reforms, under a new business management
system that incorporates an objective, external perspective.
Amidst these circumstances, there have been instances ofcompliance-related improprieties. To ensure that such
incidents never occur again, we at the Kansai Electric PowerGroup will resolutely reform our organizational culture toassure thorough compliance and will work together toprevent any recurrences. We are also focusing on a numberof company-wide initiatives to restore confidence in ouroperations in a challenging business environment
underpinned by societal changes such as the deregulation of
the electricity market and the shift to decarbonization anddigitalization.

Kansai Electric Power Group Integrated Report 2023

As a member of the Nominating Committee, I haveexpressed my opinions on such matters as the operation of
the succession plan for the president and the developmentof successor candidates and succession planning forcandidates for outside directors. In addition, as a member ofthe Audit Committee, I have clarified the mission of the Audit
Committee to conduct more effective audits and to improvegovernance. In Board of Directors meetings, I have madeefforts to strengthen the management system, such as bygiving my opinions on the status of the execution of duties
by directors and executive officers as well as on the legality
and appropriateness of matters brought before the Board of
Directors.
Furthermore, I have worked to ensure the soundness ofmanagement by utilizing information obtained throughdialogue with employees in the front-line workplaces and by
making suggestions and offering opinions to executive
officers and others as needed.
Looking ahead, I intend to continue to play a role instrengthening the supervisory function of the Board of
Directors from an objective, external standpoint.

■

Expectations for the Kansai ElectricPower GroupThe electric power business is the bedrock of the economic
activity of households and businesses, and by extension, a
critical public infrastructure that is linked to national security,and therefore is required to provide a safe, inexpensive, andstable supply of electric power.
In order to reconstruct ourselves as a corporate group thatis needed by our customers and society, it is essential that we
continue to innovate technologically and reform ourmanagement, and that we nurture an energetic
organizational culture, a prerequisite for such innovation andreform. We are also expected to play a role in achievingcarbon neutrality, a goal that is accelerating on a global scale.
Our Company has a spirit of initiative, having pioneered
nuclear power generation and large-scale hydroelectric
power generation in Kurobe. It is important to build on thesefoundations to cultivate a free and open corporate climatethat allows for the free flow of ideas and the ability to voice
any problems that may arise.
Meanwhile, the employees of the Group are highly
talented. In the reforms at hand, it is crucial to clarify andconvey to all employees a free and open corporate culturethat respects this spirit of initiative. At the same time, if
everyone in the Company, from the president to new
employees, works in unity with a shared positive mindset andsense of crisis and tackles everything proactively andpersistently, I believe we can achieve the reforms we are
seeking.
Every one of our employees doing their best and excellingin their respective positions will make the entire Kansai
Electric Power Group shine brighter and will further serve tocreate a new Kansai Electric Power Group, which, considering
our role as the most important infrastructure for society, will
shine a light on the economy and society of the entire Kansai
region, and possibly even the entire nation and world. With
such awareness, passion, and pride, I look forward to working
persistently with all of our employees to make the Grouprobust and capable of sustainable development.

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Message from the Outside Director

Atsuko Kaga
Director
Member of theCompensation Committee■

Efforts as a member of the Compensation
Committee and future prospects

Since June 2020, when the Compensation Committee wasestablished as a legally required part of the Company’s shift tobeing a company with a nominating committee, etc., all membersin the Compensation Committee have devoted themselves todeveloping and operating a compensation system that iscommensurate with the responsibilities and achievements of eachmember, under a system in which all members are outside
directors, based on the fundamental premise of ensuring
objectivity and transparency.
Over the past year, taking into consideration social trends andthe opinions of our shareholders and investors, we haveintroduced ESG-related indices into performance-based
compensation and held discussions on various indices to ensurethat targets are set to achieve the goals of the Medium-Term
Management Plan. Moreover, in clarifying management
responsibility in response to a series of scandals, the Compensation

Kansai Electric Power Group Integrated Report 2023

Committee discussed and reviewed the details of disciplinary
actions against those involved to ensure that they are appropriate,
and the final decision was made by the Board of Directors. The
Compensation Committee will continue to discuss and improve
the quality of management to ensure that the compensation
system and its level are appropriate in the future.
The majority of our Board of Directors is made up of outside
directors, who engage in very lively discussions, and I think
governance that values an objective viewpoint from an external
perspective is taking root in the Company.
Last year, responding to requests from outside directors thatthey want to take more time to discuss important management
issues with all directors, we held the Group’s first joint training
session for all directors and executive officers, where they spent
two days in spirited discussion and deliberation on management
issues and the direction of our growth strategies. My participationin the workshop deepened my understanding of the Company’sbusiness operations and I find that it enhanced the quality of theBoard of Directors’ discussions on medium- to long-term
management policies, including the business portfolio of theentire Group.
In response to the series of improprieties, I will continue to put
all of my energy into making the Board of Directors function better,with organizational climate reform and drastic reinforcement ofinternal controls being the major issues to be addressed.

■

Expectations for the Kansai ElectricPower Group

After graduating from university, I was involved in the start-up of auniversity-launched venture company, which was rare in Japan at
the time. Later, I was engaged in consensus building for an urban
development project utilizing ICT at a railroad company and in the
study of new urban development projects, and have been activein establishing and managing new businesses and organizations

since I was young. After becoming a researcher at a university, I did
research and education on urban planning and development, andalso worked on the establishment of a new department with theaim of training engineers and researchers to have an
understanding of management. Among the many lessons I havelearned from these experiences, one that I consider very importantis to have an objective perspective. This is because when I wasyoung, I was scolded by someone outside the company who wasinvolved in a project with me, saying, “You are thinking only interms of your company’s internal logic, and you are only looking
internally.” This made me realize that I had become so entrenchedin the organization to which I belonged and that my thinking wasbiased from an external perspective, and it also made me keenly
aware of the need to have an objective point of view.
As the energy business is facing a major turning point, ourGroup is promoting new initiatives, including not only further
expansion of renewable energy but also conversion to zero-carbon
thermal power generation using hydrogen, as well as taking on thechallenge of entering diverse business domains. In order topromote these efforts, it is necessary for us to always keep anobjective point of view, to fully understand our own words,
actions, and thoughts, as well as the conditions and challenges of
our work within the organization and society, and to makeappropriate decisions.
I would like everyone in the Group to listen to the voices ofpeople in various positions and with different ideas so that they may
broaden their perspectives through exposure to diverse values, andto constantly update their objective perspectives by visualizing theirown actions and thoughts so that they can meet the expectationsof customers and society, which change with the times.
I will continue to fulfill my role and responsibility in the Board of
Directors, which is to make sound decisions and provide effective
supervision while maintaining an objective and external perspective.
I will do my utmost, respecting perspectives of various stakeholders,to help the Group achieve transformation and sustainable growth.

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Directors

Director
Member of the Audit Committee

Director
Member of the Nominating Committee
Member of the Compensation Committee

Director
Member of the Audit Committee

Director
Member of the Compensation Committee

Director
Member of the Audit Committee

Director
Member of the Audit Committee

Motoko Tanaka

Seiji Manabe

Fumio Naito

Atsuko Kaga

Yasuji Shimamoto

Nobuhiro Nishizawa

Director
Member of the Nominating Committee
Member of the Audit Committee

Director
Chairman of the Audit Committee

Director
Member of the Nominating Committee
Chairperson of the Compensation Committee

Chairman and Director
Chairman of the Nominating Committee
Member of the Compensation Committee

Takamune Okihara

Hiroshi Tomono

Kazuko Takamatsu

Sadayuki Sakakibara Nozomu Mori

Kansai Electric Power Group Integrated Report 2023

Director
Representative Executive Officer, President

Director
Representative Executive Officer,
Vice President

Director
Representative Executive Officer,
Vice President

Koji Inada

Makoto Araki

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Financial and Corporate Information

Directors
Outside Directors and Independent Officers
June 2002: Representative Director and President, Toray Industries, Inc.
June 2010: Representative Director and Chairman, Toray Industries, Inc.
June 2014: Chairman, Japan Business Federation
June 2014: Executive Chairman, Toray Industries, Inc.
June 2015: Chief Senior Advisor and Chief Senior Counselor,
Toray Industries, Inc.
June 2017: Senior Advisor, Toray Industries, Inc.
May 2018: Honorary Chairman, Japan Business Federation (to present)
June 2018: Special Advisor, Toray Industries, Inc. (retired in June 2019)
June 2020: Chairman and Director of the Company (Outside Director)(to present)

Chairman and Director
Chairman of the Nominating
Committee
Member of the Compensation
Committee

Sadayuki Sakakibara

Appointment reason 
Mr. Sadayuki Sakakibara has held important positions of Toray Industries,
Inc., which globally operates businesses, and has assumed office as
Chairman of the Japan Business Federation. As such, Mr. Sakakibara has awealth of experience as a corporate manager. Since June 2020, Mr.
Sakakibara has appropriately supervised the overall management of theCompany and provided useful advice as an outside director. In particular,
in dealing with scandals involving violation of the Antimonopoly Act andimproper handling of information on power producer and supplier (PPS)
customers, which is prohibited by the Electricity Business Act, as
Chairman and Director of the Company and Chair of the Board of
Directors, Mr. Sakakibara has been providing strict supervision andguidance on efforts to reform the organizational climate and drasticallystrengthen internal controls to prevent recurrence, based on his belief
that thorough compliance is a fundamental premise of management.
The Company believes that Mr. Sakakibara can be expected to continue
to play the same role.

Apr. 1987: Director, Plus1 Co., Ltd. (retired in March 1989)
Apr. 2002: Assistant Professor, Graduate School of Engineering,Osaka University
Apr. 2007: Associate Professor, Graduate School of Engineering,Osaka University
Apr. 2009: Professor, Graduate School of Engineering, Osaka University(to present)
June 2019: Outside Audit & Supervisory Board Member of the Company
June 2020: Outside Director of the Company (to present)

Director
Member of the Compensation
Committee

Atsuko Kaga

May 2004: President and CEO, Representative Director, UFJ Bank Ltd.
June 2004: Director, UFJ Holdings, Inc.
Jan. 2006: Deputy President, Representative Director, The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Apr. 2008: Deputy Chairman, Representative Director, The Bank ofTokyo-Mitsubishi UFJ, Ltd.
June 2010: Chairman, Representative Director, Mitsubishi UFJ Financial
Group, Inc. (retired in June 2014)
May 2014: Senior Advisor, The Bank of Tokyo-Mitsubishi UFJ, Ltd.
June 2014: Outside Director of the Company (to present)
Apr. 2018: Senior Advisor, MUFG Bank, Ltd. (changed bank name)(to present)

Director
Member of the Nominating
Committee
Member of the Audit Committee

Takamune Okihara

Appointment reason 
Mr. Takamune Okihara has held important positions of Mitsubishi UFJ
Financial Group, Inc., which engages in banking business and otherfinancial service business on a global level. As such, Mr. Okihara has awealth of experience as a corporate manager and has provided
opinions and advice on the management of the Company from a
broad managerial perspective as Outside Director since June 2014.
Also serving as a member of the Audit Committee since June 2022, Mr.
Okihara has been devoting himself to invigorating Committee
discussions and strengthening its functions by providing rational anduseful recommendations on audit policies and other matters from his
perspective as an experienced corporate manager. The Company
believes that Mr. Okihara can be expected to continue to play the samerole.

Kansai Electric Power Group Integrated Report 2023

Appointment reason 
Ms. Atsuko Kaga has experience working at private companies andnow serves as a professor at a Graduate School of Osaka University. As
such, Ms. Kaga has provided opinions and advice on the managementof the Company from a broad perspective as a person of extensive
learning and experience and as Outside Audit & Supervisory Board
Member since June 2019, and as Outside Director since June 2020. The
Company believes that Ms. Kaga can be expected to continue to play
the same role.

Apr. 2003: Representative Director, Sony Digital Network Applications,
Inc.
Oct. 2008: VP, Senior General Manager of Environmental Center,Sony Corporation (retired in March 2012)
Apr. 2013: Executive Director and Secretariat, Japan Institute for
Women’s Empowerment & Diversity Management
Apr. 2020: Executive Director, Japan Institute for Women’s
Empowerment & Diversity Management (resigned in June
2020)
June 2020: Outside Director of the Company (to present)

Director
Member of the Nominating
Committee
Chairperson of the Compensation
Committee

Kazuko Takamatsu

June 2005: Representative Director & President,
Sumitomo Metal Industries, Ltd.
Oct. 2012: Representative Director & President & COO,
Nippon Steel & Sumitomo Metal Corporation
Apr. 2014: Representative Director & Vice Chairman,
Nippon Steel & Sumitomo Metal Corporation
Apr. 2015: Director & Advisor, Nippon Steel & Sumitomo Metal
Corporation
June 2015: Advisor, Nippon Steel & Sumitomo Metal Corporation
Apr. 2019: Advisor, Nippon Steel Corporation (changed corporate name)
June 2020: Alumnus of Nippon Steel Corporation (to present)
June 2020: Outside Director of the Company (to present)

Director
Chairman of the Audit Committee

Hiroshi Tomono

Appointment reason 
Mr. Hiroshi Tomono has held important positions of Sumitomo Metal
Industries, Ltd. and Nippon Steel & Sumitomo Metal Corporation(currently Nippon Steel Corporation), which globally operatebusinesses. As such, Mr. Tomono has a wealth of experience as acorporate manager. Mr. Tomono has provided opinions and advice on
the management of the Company from a broad managerial
perspective as Outside Director since June 2020. The Company
believes that Mr. Tomono can be expected to continue to play thesame role.

Appointment reason 
Ms. Kazuko Takamatsu has ample experience as an expert in diversity,
serving as Executive Director and Secretariat of Japan Institute for
Women’s Empowerment & Diversity Management. Ms. Takamatsu has
also held important positions of Sony Corporation (currently Sony
Group Corporation), which operates global business, and served in thepast as Representative Director of a subsidiary of Sony Corporation. As
such, Ms. Takamatsu has experiences as a corporate manager and has
provided opinions and advice on the management of the Company
from a broad perspective including diversity management as Outside
Director and a member of the Nominating Committee since June 2020.
The Company believes that Ms. Takamatsu can be expected to continue
to play the same role.

Apr. 1990: Assistant Professor, School of Business Administration,
Kobe University
Apr. 1997: Professor, School of Business Administration, Kobe
University
Apr. 1999: Professor, Graduate School of Business Administration,
Kobe University
Apr. 2006: Honorary Professor, Kobe University (to present)
Apr. 2006: Professor, Faculty of Business Administration, Konan
University (to present)
June 2020: Outside Director of the Company (to present)

Director
Member of the Audit Committee

Fumio Naito

Appointment reason 
Mr. Fumio Naito has a wealth of experience serving as a person ofextensive learning and experience in fields such as financial
accounting, auditing, and corporate governance. As such, Mr. Naito has
provided opinions and advice on the management of the Company
from a broad perspective including financial accounting as Outside
Director since June 2020. The Company believes that Mr. Naito can be
expected to continue to play the same role.

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Financial and Corporate Information

Directors
Directors
May 2012: President, Representative Director and Executive Officer,
West Japan Railway Company
June 2016: Chairman and Director, West Japan Railway Company
June 2021: Senior Adviser, West Japan Railway Company (to present)
June 2023: Outside Director of the Company (to present)

Director
Member of the Nominating
Committee
Member of the Compensation
Committee

Seiji Manabe

Appointment reason 
Mr. Seiji Manabe has held important positions of West Japan Railway
Company, a social infrastructure provider that operates diversified
business centered on railway transport. As such, Mr. Manabe has awealth of experience as a corporate manager. The Company believes
that Mr. Manabe can be expected to provide opinions and advice on
the management of the Company from a broad managerial
perspective.

July 2019: Chief public prosecutor, Kobe District Public Prosecutors
Office (retired in September 2020)
Nov. 2020: Registered as attorney-at-low (to present)
June 2023: Outside Director of the Company (to present)

Director
Member of the Audit Committee

Motoko Tanaka

Director
Representative Executive Officer,
President

Nozomu Mori

Apr. 1988: Entered The Kansai Electric Power Co., Inc.
June 2018: Executive Officer, General Manager of Office of Asset
Optimization and Trading
July 2019: Executive Officer, Vice General Manager of Operation andTrading Division, General Manager of Operation Planning
Section and Trading Section
Oct. 2019: Managing Executive Officer, General Manager ofRenewable Energy Division, General Manager ofCommunity Energy Division
June 2020: Executive Vice President
June 2021: Director, Representative Executive Officer, Vice President
June 2022: Director, Representative Executive Officer and President of
the Company (to present)

Appointment reason 
Mr. Nozomu Mori has extensive operational experience, primarily in thetransmission and distribution sector. Since being appointed as aManaging Executive Officer in October 2019, he has served as General
Manager of the Renewable Energy Division and General Manager of theCommunity Energy Division and has been in charge of Hydrogen
Business Strategy Division, etc., and has broad insight in these fields. Mr.
Mori has also been responsible for the management of the Group as
Director, Representative Executive Officer and Vice President since June
2021. Mr. Mori has contributed to increasing the Group’s value by
demonstrating leadership on management as a whole throughcontinuing efforts set forth in the Kansai Electric Power Group
Medium-term Management Plan (2021-2025) on a group-wide basis as
Director, Representative Executive Officer and President from June 2022.
Moreover, in dealing with the scandals, such as the finding of theviolation of the Antimonopoly Act and the breach of the Electricity
Business Act due to the improper handling of information on power
producer and supplier (PPS) customers, Mr. Mori as leader rigorously
strove to reform the organizational climate and fundamentally enhance
its internal control in order to prevent recurrence, under a philosophy inwhich thorough compliance is the prerequisite for business
management.
Since Mr. Mori contributed to enhancing the effectiveness of the Boardof Directors by leading deliberations on these important management
issues and conducting appropriate supervision, the Company believes
that Mr. Mori is well qualified to be responsible for supervision of theCompany’s management.

Director
Representative Executive Officer,
Vice President

Koji Inada

Apr. 1984: Entered The Kansai Electric Power Co., Inc.
June 2013: Executive Officer, Deputy General Manager of General
Planning Headquarters, General Manager of Corporate
Social Responsibility and Business Management
Department, General Manager of Nuclear Power Safety andQuality Management Promotion Department
June 2015: Executive Officer, Acting Chief of General Planning
Headquarters, General Manager of Corporate Social
Responsibility and Business Management Department,
General Manager of Nuclear Power Safety and Quality
Management Promotion Department, Executive Officer,
Deputy General Manager of General Planning
Headquarters
June 2016: Managing Executive Officer, in charge of Office of Corporate
Planning, in charge of Office of IT Strategy
June 2018: Director, Managing Executive Officer of the Company
June 2019: Representative Director, Executive Vice President
June 2020: Director, Representative Executive Officer and Vice Presidentof the Company (to present)

Appointment reason 
Mr. Koji Inada has extensive operational experience, primarily in the IT
and planning divisions, and since being appointed as a Director in June
2018, he has been in charge of Office of Asset Optimization and Trading,
Office of IT Strategy, Office of Corporate Planning, Office of Energy andEnvironmental Planning, Interim Storage Promotion, and Complianceon Wheeling Service Guidelines under the Electricity Business Act, etc.,
and has broad insight in these fields in addition to being responsible forthe management of the Group as a Director, Representative Executive
Officer, Vice President since June 2020.
In addition, Mr. Inada has led the discussions on power source portfolio
and nuclear power business in light of Zero Carbon Vision 2050 andenergy-related policy trends, and engages in an appropriate supervisionon the management through expressing useful opinions, thereby
contributing to enhancing the effectiveness of the Board of Directors.
Moreover, in dealing with the scandals, such as the finding of theviolation of the Antimonopoly Act and the breach of the Electricity
Business Act due to the improper handling of information on power
producer and supplier (PPS) customers, Mr. Inada rigorously strove toreform the organizational climate and fundamentally enhance its
internal control in order to prevent recurrence, under a philosophy inwhich thorough compliance is the prerequisite for business
management. Based on his experience and insight, the Company
believes that Mr. Inada is well qualified to be responsible for supervisionof the Company’s management.

Appointment reason 
Ms. Motoko Tanaka has held a number of important positions, among
them Chief Prosecutor of the Kobe District Public Prosecutors Office.
Ms. Tanaka now serves as an attorney-at-law, and has assumed office
as outside officer of other companies. As such, Ms. Tanaka has awealth of experience in the legal profession and supervision of
corporate management. The Company believes that Ms. Tanaka canbe expected to provide opinions and advice on the management of
the Company from a broad perspective including compliance.

Kansai Electric Power Group Integrated Report 2023

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Directors

Director
Representative Executive Officer,
Vice President

Makoto Araki

Apr. 1987: Entered The Kansai Electric Power Co., Inc.
June 2016: Executive Officer, General Manager of Office of IT Strategy
June 2017: Executive Officer
Representative Director, Executive Vice President of
K-Opticom Inc.
June 2018: Executive Officer
Representative Director, President of K-Opticom Inc.
April 2019: Executive Officer
Representative Director, President of OPTAGE Inc. (changed
corporate name)
June 2021: Executive Vice President
June 2023: Director, Representative Executive Officer and Vice
President of the Company (to present)

Appointment reason 
Mr. Makoto Araki has extensive operational experience, primarily in the
IT division, and experience as president of a subsidiary. Since being
appointed as an Executive Vice President in June 2021, he has been in
charge of Office of Compliance Promotion, Hydrogen Business Strategy
Division and Office of IT Strategy, and has board insight in these fields.
Moreover, in dealing with the scandals, such as the finding of theviolation of the Antimonopoly Act and the breach of the Electricity
Business Act due to the improper handling of information on power
producer and supplier (PPS) customers, Mr. Araki rigorously strove toreform the organizational climate and fundamentally enhance its
internal control in order to prevent recurrence, under a philosophy inwhich thorough compliance is the prerequisite for business
management. The Company believes that Mr. Araki is well qualified tobe responsible for supervision of the Company’s management.

Apr. 1983: Entered The Kansai Electric Power Co., Inc.
June 2014: Executive Officer, Deputy Division Manager of Thermal
Power Division, General Manager of Thermal PowerOperation Department, Deputy Division Manager of
Nuclear Power Division
June 2016: Managing Executive Officer, Division Manager of Thermal
Power Division
June 2017: Director, Managing Executive Officer of the Company
June 2020: Executive Vice President of the Company
June 2021: Director of the Company (to present)

Director
Member of the Audit Committee

Yasuji Shimamoto

Appointment reason 
Mr. Yasuji Shimamoto has extensive operational experience, primarily
in the Thermal Power Division. Since being appointed as a Managing
Executive Officer in June 2016, he has served as Division Manager ofThermal Power Division and has been in charge of the Officer ofResearch and Development, and has broad insight in these fields. Mr.
Shimamoto has been Executive Vice President since June 2020. He has
been responsible for management as Director, and auditing as amember of the Audit Committee since June 2021.
Moreover, in dealing with the scandals, such as the finding of theviolation of the Antimonopoly Act and the breach of the Electricity
Business Act due to the improper handling of information on power
producer and supplier (PPS) customers, Mr. Shimamoto rigorously
strove to reform the organizational climate and fundamentallyenhance its internal control in order to prevent recurrence, under aphilosophy in which thorough compliance is the prerequisite forbusiness management. Based on his experience and insight, theCompany believes that Mr. Shimamoto is well qualified to be
responsible for supervision of the Company’s management.

Apr. 1982: Entered The Kansai Electric Power Co., Inc.
June 2016: Executive Officer, General Manager of Office of Accounting
and Finance
June 2019: Managing Executive Officer, General Manager of the
Sourcing and Procurement Division, and in charge of Officeof Nuclear Fuel Cycle (Nuclear Fuel Cycle Business) & Officeof Accounting and Finance
June 2020: Director, Executive Vice President
June 2022: Director, Representative Executive Officer and Vice Presidentof the Company
June 2023: Director of the Company (to present)

Director
Member of the Audit Committee

Appointment reason 
Mr. Nobuhiro Nishizawa has extensive operational experience, primarily inNobuhiro Nishizawa the financing and accounting division. Since being appointed as aManaging Executive Officer in June 2019, he has been in charge of the
Office of Nuclear Fuel Cycle (Nuclear Fuel Cycle Business) & Office of
Accounting and Finance, and has served in positions such as General
Manager of the Sourcing and Procurement Division and has broad insightin these fields. Mr. Nishizawa has been responsible for the management of
the Company as Executive Vice President since June 2020, as Director,
Representative Executive Officer, and Vice President since June 2022, and as
Director since June 2023. He has been responsible for auditing as a memberof the Audit Committee since June 2023.
In addition, Mr. Nishizawa has led discussions on the Group’s capital policy
and financial strategy, and engages in an appropriate supervision on the
management through expressing useful opinions, thereby contributing toenhancing the effectiveness of the Board of Directors.
Moreover, in dealing with the scandals, such as the finding of the violationof the Antimonopoly Act and the breach of the Electricity Business Act due
to the improper handling of information on power producer and supplier(PPS) customers, Mr. Nishizawa rigorously strove to reform theorganizational climate and fundamentally enhance its internal control inorder to prevent recurrence, under a philosophy in which thoroughcompliance is the prerequisite for business management. Based on his
experience and insight, the Company believes that Mr. Nishizawa is wellqualified to be responsible for supervision of the Company’s management.

■ Composition of the Board of Directors and committees
Board of Directors
Ratio of Female23％

5 Inside Directors
Ratio of
Outside Directors
Outside Directors
Inside Directors

Nominating Committee

62%

Female8

OutsideDirectors

4 Outside Directors

Ratio of Female
25％

Compensation Committee

4 Outside Directors

Ratio of Female
50％

Audit Committee
Ratio of Female17％

2 Inside Directors

Ratio of
Outside Directors

Ratio of
Outside Directors

Ratio of
Outside Directors

100%

100%

67%

4

OutsideDirectors

Male

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Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Executive Officers
Representative Executive
Officer, President

Representative Executive
Officers, Vice Presidents

Executive Vice Presidents

Director
Representative
Executive Officer,
President

Director
Representative Executive
Officer, Vice President

Executive Vice President

Executive Vice President

Executive Vice President

Nozomu Mori

Koji Inada

Naoki Naito

Yasushi Ando

Toru Tanaka

Energy Business in general
In charge of Interim Storage
Promotion and Trading

In charge of Energy Business(Tokyo)Acting General Manager of Nuclear
Power Division(Energy Planning)

In charge of Office of Corporate
Planning
General Manager of Sourcing andProcurement Division
In charge of Office of Accounting
and Finance

Representative Executive
Officer, Vice President

Executive Vice President

Executive Vice President

Executive Vice President

Mikio Matsumura

Takashi Tada

Mika Makiyama

Hayato Takabatake

General Manager of Customer
Solution Division
General Manager of Internationaland Cooperation Division

General Manager of Renewable
Energy Division
In charge of Office of Civil
Engineering and Architecture

Acting General Manager ofCustomer Solution Division
General Manager of Gas Business
Division

Acting General Manager of
Nuclear Power Division (Nuclear
Safety & Technology, Nuclear
Power Generation, Nuclear Fuel)In charge of Office of Nuclear Fuel
Cycle

Representative Executive
Officer, Vice President

Executive Vice President

Executive Vice President

Hitoshi Mizuta

Kazumitsu Takanishi

Hiroshi Ogawa

General Manager of Nuclear Power
Division

General Manager of Operation andTrading Division
General Manager of Thermal Power
Division
General Manager of Innovation
Development Division
In charge of Hydrogen Business
Strategy Division

In charge of Office of Energy andEnvironmental Planning, Office of
Nuclear Fuel Cycle (Nuclear Fuel
Cycle Business), and Office of Plant
SitingDirector
Representative Executive
Officer, Vice President

Executive Vice President

Executive Vice President

Makoto Araki

Nobuyuki Miyamoto

Masaaki Ikeda

Corporate Operations in general
In charge of Office of Organizational
Climate Reform, Office of IT Strategy,
and Office of Internal Auditing

In charge of Office of Human
Resources and Safety Management
and Office of General Administration
General Manager of Office of Board
Directors

Chief Compliance Officer*
In charge of Office of Corporate
Communications*Also
 in charge of Compliance on Wheeling Service Guidelines
under the Electricity Business Act
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Corporate Governance Systems■ Basic concept on corporate governance
Based on the Kansai Electric Power Group Purpose & Values,
the Group will continue to meet the expectations of all its
stakeholders, thereby contributing to the sustainableimprovement of corporate value and the sustainable
development of society.
Recognizing that the most important management issue
for achieving this goal is strengthening corporate governance,
we have adopted the institutional design of a company with anominating committee, etc., which clearly separates
execution and supervision for our corporate governance, withthe aim of enhancing management transparency andobjectivity in business management.
In terms of supervision, in order to reflect the perspectivesof all our stakeholders, we have established a system with a
Board of Directors at the core focused on objective anddiverse perspectives as outsiders. By appropriately supervising
execution, we will improve transparency and objectivity inbusiness management.

General Shareholders’ Meeting
Appointment /Dismissal

Appointment /Dismissal

1. Supervision

Execution

Board of Directors

Nominating Committee

Compensation Committee

Audit Committee

Compliance Committee

Appointment /Dismissal

Supervision
Submission /Reporting

Audit
Advice /Guidance /Supervision
Reporting

Representative Executive
Officer, President

Executive Meeting
Various Committees
· Organizational Climate Reform
Committee
· Sustainability Promotion Council
· Nuclear Safety Verification
Committee
· Procurement Review Committee, etc.

Divisions/Offices
Internal audit

Accounting audit

Office of Internal Auditing

Note: The Kansai Electric Power Co., Inc. will also implement an appropriate governance system for Kansai Transmission and Distribution, Inc., insofar as the Company has
the right to do so as its shareholder, based on the premise of ensuring neutrality as a general power transmission and distribution business operator.
Kansai Electric Power Group Integrated Report 2023

In our Company, the Executive Meeting and various
committees are placed under the Board of Directors, which
has been charged with management responsibility by theGeneral Shareholders’ Meeting. While executing operations
appropriately, we supervise the execution of duties by ourdirectors and executive officers through the Board of Directors.
We have adopted the institutional design of a company with anominating committee, etc. since June 2020, which clearly
separates execution and supervision for our corporate
governance, with the aim of enhancing managementtransparency and objectivity in business management.

Submission /Reporting

Supervision

Accounting Auditors■ Overview of current corporate governance

Board of Directors<Structure>
In light of our business scale, business description, approachto managerial issues, and supervisory function, as well as
diversity, including gender, internationality, work history andage, the Board of Directors is a necessary and appropriate
structure composed of independent outside directors (eight
persons) with ample experience and knowledge cultivated as
executives or professionals in a wide range of fields and insidedirectors (five persons) who have abundant expertise andabilities in our business.
In addition, from the perspective of appropriate decisionmaking and effective supervision, the number of the Board
members shall be 20 or less, a majority of which shall be
independent outside directors.
The Chairperson of the Board of Directors shall be an
independent outside director.

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Corporate Governance Systems<Roles and responsibilities>
Based on the standpoints of our diverse and wide-ranging set ofstakeholders, the Board of Directors aims to achieve sustainablegrowth and increase the corporate value of the Group over the
medium to long term. To achieve these ends, the Board takes on
the following main responsibilities: to illuminate the future path of
the Group, including our corporate strategy, develop an
environment that supports appropriate risk-taking by executive
officers, and provide highly effective supervision of managementfrom an independent and objective standpoint.
We will decide basic management policies such as
management plans after thorough discussions from a variety ofperspectives, regularly monitor progress and reflect results in our
future policies. In addition, we will establish effective internal
control and risk management systems, supervise management witha focus on compliance, and support executive officers for their swift
and strong-minded decision-making. Moreover, for particularly
important matters, the Board of Directors will provide special
supervision that requires in-depth reporting.
From the standpoint of clearly separating execution andsupervision, the Board of Directors, in principle, delegates decisions
on business execution to executive officers in line with basic
management policies. Regardless of whether or not delegation to
executive officers is made, if necessary, especially important
decisions on business execution are discussed in advance at theBoard of Directors meeting while they are being considered, andappropriate opinions and advice are provided from outside
directors and other directors before decisions are made.

Nominating Committee
The Nominating Committee is chaired by an independent outside
director and all of its four members are independent outside
directors.
The Nominating Committee resolves proposed agenda for
General Shareholders’ Meeting regarding the appointment andKansai Electric Power Group Integrated Report 2023

dismissal of directors after establishing the “Policy for nominating
director candidates.” The Committee also resolves/deliberates onmatters related to the appointment of executives. In addition, theCommittee is responsible for formulating a succession plan for the
Executive Officer and President, as well as developing candidates
in a planned manner, with sufficient time and resources. In thecourse of this process, it is important for the Committee torecognize the appointment of the Executive Officer and President
as the most important strategic decision-making for sustainablegrowth of the entire Group and improvement of corporate value
over the medium to long term. In formulating the succession plan,
the Committee deliberates the outcome, required experience andskills, competency (ability), potential (quality), sense of value, andpersonality expected from the next Executive Officer andPresident, and reviews “what the President is supposed to be.”Moreover, utilizing internal assessment and external
assessment by third-party organizations, the Committee collects
information on candidates in a multifaceted way. Members also
directly interview candidates to clarify the appointment process,with high transparency and objectiveness ensured.
Chairperson: Sadayuki Sakakibara
Committee members: Takamune Okihara, Kazuko Takamatsu
and Seiji Manabe

Compensation Committee
The Compensation Committee is chaired by an independent
outside director and all of its four members are independent
outside directors.
The Compensation Committee resolves compensation ofrespective directors and executive officers after establishingthe “Policy for determining remuneration, etc. for directors andexecutive officers.” The Committee also resolves/deliberates
on other matters related to executive compensation. Whenconsidering various compensation-related issues, such as thestandard of compensation of directors, the Committee uses
data from external specialized organizations and examples
from other companies.
Chairperson: Kazuko Takamatsu
Committee members: S adayuki Sakakibara, Atsuko Kaga andSeiji Manabe

Audit Committee
The Audit Committee is chaired by an independent outside
director and consists of four outside and two inside directors notconcurrently serving as executive officers. To serve as an Audit
Committee member, each director is required to haveappropriate experience and abilities as well as necessary
knowledge of finance, accounting, and legal affairs.
The Audit Committee establishes basic policies and rules
necessary to execute its duties, and audits the execution ofduties by executive officers, directors, employees, and otherparties in the Company or its subsidiaries, from the viewpoint oflegality and appropriateness. In addition, the Committee reports
and expresses its opinions on the status and results of audits to
the Board of Directors. When necessary, the Committee provides
advice and recommendations to executive officers, etc.
The Audit Committee, the Office of Internal Auditing andaccounting auditors will conduct efficient and effective audits inclose collaboration as appropriate through exchanging opinions
on audit plans and audit results.
The Committee members participate in important meeting
structures, such as the Executive Meeting, and hear explanationsof matters of importance in business management fromexecutive officers.
Chairperson: Hiroshi Tomono
Committee members: Takamune Okihara, Fumio Naito,
Motoko Tanaka, Yasuji Shimamoto
and Nobuhiro Nishizawa

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Corporate Governance Systems
Compliance Committee

Directors

For the purpose of strengthening the Group’s function tosupervise compliance, we have established a Compliance
Committee, which is independent from the President andother executive officers. The Committee is under the directcontrol of the Board of Directors. The Committee, a majorityof which including the Chairperson are outside experts,
deliberates and approves particularly important matters suchas basic policies for promoting compliance and policies foraddressing problematic events associated with directors,
executive officers, and others. When necessary, theCommittee also directly guides, advises and supervises the
President and other executive officers, as well as reporting
periodically to the Board of Directors.

<Nomination policy>
In performing their duties, our directors must be willing toconduct themselves with emphasis on compliance, in
accordance with the basic orientation of business
management and guiding principles specified in the Kansai
Electric Power Group Purpose & Values, the Kansai ElectricPower Group Code of Conduct, etc. Regarding the nominationof director candidates, the Nominating Committee makes adecision after deliberating comprehensively on whether the
candidate’s ability, experience, personality, insight, and otherelements are good enough to take on management of theCompany, also in light of diversity, including gender,internationality, work history and age, from the viewpoint ofappropriate decision-making and effective supervision.

The Company has established its own judgment criteria for
independency, as described below, in consideration ofrequirements for independent officers stipulated by the Tokyo
Stock Exchange, Inc. For outside directors, we assess their
independency using these criteria from the perspective of
their expected role in strengthening the supervisory functionof the Board of Directors. If an outside director concurrently
serves as an officer at another listed company, the number ofconcurrent positions is within a reasonable range so that thetime and labor required to properly fulfill the roles andresponsibilities as an outside director of the Company can be
secured.

<Judgment criteria for independency established by the Company>
The Company considers an outside director to be independent when the outside director does not fall under any of the categoriesof 1 to 9 below.

Kansai Electric Power Group Integrated Report 2023

1

A person to whom the Company is a major business partner, or abusiness executive for that person

2

A major business partner of the Company, or its business executive

3

A consultant, accounting professional or legal professional who receives alarge amount of money or any other assets, other than executive
compensation, from the Company (if the consultant, etc. who receives
such assets is an organization such as a corporation, a person who
belongs to that organization)

4

A person who receives a large amount of donations or membership feesfrom the Company, or a business executive for that person

5

A business executive of the auditing firm of the Company

6

A person who is a major shareholder of the Company, or a businessexecutive for that person and a business executive of a company forwhich the Company is a major shareholder

7

A business executive of a company which has accepted an executive
from the Company or a subsidiary of the Company

8

A person who has fallen under any of the categories of 1 to 7 above
recently

9

A spouse or relative within the second degree of kinship to a person
descried in either of the following items (excluding those who are not inapplicable positions)(1) A person listed in 1 to 3 above(2) A person who is currently or has recently been a business executive of
the Company or a subsidiary of the Company

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Corporate Governance Systems<Directors’ skill matrix>
The following is a list detailing the experience and insight required for the members of the Company’s Board of Directors, who havebeen selected by the Nominating Committee, as well as skills possessed by directors.

Directors

Management
experience

Governance/
Riskmanagement

Sadayuki
Sakakibara●●

Takamune
Okihara●●Legal affairs/
Compliance

Finance/
Accounting

Industrial
policies●●●

KazukoTakamatsu

●

Fumio
Naito

●

●

MotokoTanaka

●

●
●

●
●

●

●

●
●

●

Nozomu
Mori

●

●

●

Koji
Inada

●

●

●

MakotoAraki●

Yasuji
Shimamoto●Nobuhiro
Nishizawa

Sales/
Marketing●●●Globalexperience●●

HiroshiTomonoPublicrelationsstrategies●

AtsukoKaga

Seiji
ManabeTechnologies

●

●
●

●

<Roles and responsibilities>
Directors shall actively express their opinions and havethorough and constructive discussions at the Board of
Directors, etc. When executing their duties, directors shalldiligently collect sufficient information by requesting
explanations from other directors and executive officers andthrough other means.
Outside directors’ roles include strengthening thesupervisory function of the Board of Directors from theirobjective external perspective, making use of their abundant
experience and insight as corporate managers and specialists.
Additionally, from the perspective of actively contributing todiscussions at the Board of Directors, outside directors actively
exchange opinions and cooperate fully with executive
officers.

●●<Training>
We hold training sessions for directors when and after theytake up their post on a periodical basis to provide theknowledge necessary to fulfill their roles and responsibilities.
For outside directors, we provide explanation about theGroup’s business, finances, organization, and other aspects on
a continual basis when and after they take up their post so
they can acquire the knowledge necessary to fulfill their roles
and responsibilities. In addition, we hold tours of our facilities
as appropriate and provide opportunities for them to talk with
our front-line staff to promote their understanding of ourbusiness.

Note: See page 105 for details regarding skills.

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Corporate Governance Systems
Details regarding skills
Skills necessary for supervising the management of the Company are selected in line with the management philosophy, Medium-term Management Plan, important issues, etc. of the Company.
Details regarding skills are as follows.

Management experience

Supervising overall management, including medium- to long-term management strategies such as the Zero Carbon Vision 2050, and management of humanassets and organizations, based on management experience as a company executive.

Governance/Risk management

Supervising the establishment of governance, the development of resilient business infrastructure, and systems and operation related to risk management for
overall business activities, including supply chains.

Legal affairs/Compliance

Finance/Accounting

Technologies

Industrial policies

Public relations strategies

Supervising business activities based on expertise from the perspective of legal affairs and compliance.
Supervising accurate financial reporting, maintenance of financial soundness, promotion of growth investment for improving corporate value, and financial
strategies, capital policies, etc. for realizing appropriate shareholder returns.
Supervising measures, etc. for the efficient operation of power generation business, etc. with top priority given to safety; identification and utilization of the latest
technological trends, such as hydrogen; and response to DX and cyber security.
Supervising measures for appropriate response to energy policy trends, etc., earning trust from communities including local governments, and regional
revitalization.
Supervising measures for deepening of bilateral communication with and earning trust from a wide range of stakeholders.

Global experience

Supervising overseas investment and collaboration with overseas businesses.

Sales/Marketing

Supervising measures for improving profitability by providing new value and services beyond electricity sales, etc.

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Corporate Governance Systems
2. Execution
Executive Officers<Appointment policy>
In performing their duties, our executive officers must be willingto conduct themselves in accordance with the basic orientationof business management and guiding principles specified in the
Kansai Electric Power Group Purpose & Values, the Kansai ElectricPower Group Code of Conduct, etc., and in adherence to thespirit of the President’s Oath to Stakeholders. Regarding theappointment/dismissal of executive officers, the Board of
Directors makes a decision after deliberating comprehensively on
whether the officer has abundant expertise, and whether theirexperience, business execution ability, personality, and otherelements are good enough to take on management of theCompany.
<Roles and responsibilities>
Executive officers make decisions on how the business of theCompany is carried out, which is delegated to them by the Boardof Directors and by the resolution of the Board of Directors, andalso execute the operations of the Company.
<Training>
We hold training sessions for executive officers when and after
they take up their post on a periodical basis to provide theknowledge necessary to fulfill their roles and responsibilities.

Executive Meeting and Committees
In order to deliberate on important business execution policies,
plans, and execution of business for the entire Group and toreceive necessary reports, based on the basic policies
determined by the Board of Directors, we hold Executive Meeting
every week as a general rule. The Executive Meeting is chaired by
Kansai Electric Power Group Integrated Report 2023

Executive Officer and President, and consists of all our executive
officers to ensure swift and appropriate corporate management.
In addition to the above, for the purpose of ensuring appropriate
and smooth business execution, we have established various
committee organizations that support decision-making throughthe Executive Meeting and the business execution by respective
divisions. These committees mostly consist of executive officers
in charge of duties related with respective goals, and meetings
are convened periodically or on an as-needed basis.
<Organizational Climate Reform Committee>
We have established the Organizational Climate Reform Committee,
aimed at comprehensively forging ahead with organizational
climate reform as well as measures to prevent recurrence of
inappropriate handling of information regarding customers who
have contracts with other power producers and suppliers and theviolations of the Anti-Monopoly Act in the retail electricity business.
The Committee’s responsibilities include identifying and analyzing
company-wide issues related to these incidents, formulating
comprehensive measures for recurrence prevention, discussing andpromoting specific measures for organizational climate reform andreinforcement of internal controls, and checking the implementation
status of such measures.
<Internal Control Board>
The Internal Control Board has been established to manage risks
associated with the Group’s business activities at an appropriate
level and to achieve sustainable growth of the Group. The Board
assesses the development and operation status of internal
control systems, discusses comprehensive improvement
measures, gives instructions for improvement of inadequacies,
checks the improvement status, and provides support.
<Sustainability Promotion Council>
To address sustainability-related issues, our Group’s basic concept

and code of conduct that we should strictly observe are
stipulated in the Kansai Electric Power Group Code of Conduct.
We also set up a Sustainability Promotion Council to draw up
comprehensive sustainability measures for the entire Group andcheck implementation status. At the same time, we performconcrete activities for the Group to contribute to the sustainablegrowth of society.
<Nuclear Safety Verification Committee / Nuclear Safety
Enhancement Committee>
Regarding nuclear safety, our principles associated with nuclear
safety to be succeeded to our employees in future generations
are clearly stated in our Commitment to Enhancing Nuclear
Safety. Based on this, we are making constant efforts to improvesafety. A Nuclear Safety Enhancement Committee has been set
up to enhance the safety of nuclear power on a company-widebasis. The Committee checks and conducts discussion on the
promotion of recurrence prevention measures and fostering ofsafety culture following the accident at Mihama Nuclear Power
Station Unit 3 and activities from a broad range of viewpoints,
including voluntary and continuous activities following theaccident at Tokyo Electric Power Fukushima Daiichi Nuclear
Power Station.
In addition, opinions and advice provided by the Nuclear
Safety Verification Committee from its independent position
have been reflected in our safety improvement initiatives.
<Procurement Review Committee>
For the purpose of ensuring appropriateness and transparency inthe procedures of construction orders and contracts as well as
payment of donations and cooperation funds, we haveestablished a Procurement Review Committee, the majority ofwhich are outside experts, with an examination mechanism fromthe perspective of such experts put in place.

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Financial and Corporate Information

Corporate Governance Systems<Internal Auditing Committee>
Regarding internal audits, we have established an Internal
Auditing Committee in order to share and deliberate widelyranging management issues, such as safety and quality, gain
insights and information from outside the Company, and ensure
the adequacy of the internal audit process for the entire Group
from a fair and professional standpoint. In addition, as a
dedicated organization for conducting internal audits, the Officeof Internal Auditing (including certified internal auditors andqualified internal auditors) has been set up to audit theadequacy and effectiveness of the system and operational status
on a regular basis, this ensuring the adequacy of operations.

3. Advisors
The Company has adopted the following advisor system.
<System>Advisors may be appointed on an as-needed basis, if doing so
contributes to the sustainable development of the Group.
<Appointment/remuneration determination process>From the perspective of ensuring objectivity, when appointing
an advisor to a person who retired from the post of a director
or executive officer, the Nominating Committee, theCompensation Committee, and the Board of Directors decide
the necessity of such appointment, job description, andremuneration after rigorous deliberation, and disclose thecommissioned duties and the individual amount of
remuneration of the advisor.
<Roles>Advisors contribute to society through activities in businessand industrial communities and respond to requests from
Kansai Electric Power Group Integrated Report 2023

regional economic communities by making full use of theirown experience and human networks, toward the growth ofthe economy in the Kansai region as well as the business of
the Group. Advisors do not provide guidance or advice on
business management.

4. Remuneration of directors and executive officers<Policy for determining remuneration, etc. for directors
and executive officers>
Policy and outline of the remuneration system:
Remuneration of directors and executive officers isdetermined by the Compensation Committee in accordancewith the provisions of the Companies Act.
Remuneration of directors not responsible for execution ofbusiness consists only of basic compensation, in considerationof their roles.
Remuneration for executive officers responsible for the
execution of business consists of basic compensation thattakes into account the responsibilities required for each
executive officer’s position, etc., and short-term incentives,
which are results-based compensation and stock-based
compensation as a medium- to long-term incentive, in order
to contribute to the sustainable improvement of ourcorporate performance and corporate value. Proportion of thepayment will be set using “basic compensation: results-based
compensation: stock-based compensation = 6:3:1” as a guide.
Remuneration determination process:With the Policy for Determining Remuneration of Directors
and Executive Officers established and in accordance with thispolicy, the Compensation Committee, which is composed
solely of outside directors, makes resolutions on the
remuneration of individual directors and executive officers.

In addition, the Company utilizes data from externalorganizations and refers to the situation of other companies
when considering compensation levels and other related
issues.
<Remuneration system (Basic compensation, Performancebased compensation, and Stock-based compensation)>
Basic compensation:
The Company pays the base amount required for the positionof each director and executive officer, taking into
consideration the responsibilities required according to theirrespective job positions and other factors.
Performance-based compensation:
The Company’s performance-based compensation consists ofcompany-wide performance considering indicators alignedwith the financial targets in the Medium-term Management
Plan and results of ESG initiatives, and individual performancebased on the results of initiatives in each responsible division.
This type of compensation is calculated and paid based on
the base amount set for each job position and the degree ofachievement against the targets.
Stock-based compensation:
The Company grants a certain number of points to executive
officers and others each year based on the base amountcorresponding to their respective job positions. When theyleave their post, the Company grants its shares and pays cashin the amount equivalent to the conversion value of theCompany’s shares in proportion to their respective
accumulated points.

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Corporate Governance Systems<Remuneration System>

5. Management of subsidiaries

Breakdown of performance-based compensation
Indicator

Company-wide
performance

Financial
indicators

Percentage

Consolidated ordinary income[100 billion yen]

70%

Achievement rate = Consolidated ordinary income / 100 billion yen

FCF [-65 billion yen]

10%

Achievement rate =ROA [1.5%]

10%Actual ROA / 1.5%
Achievement rate = [ROA = (Ordinary income + Interest expense) /Total assets]

10%

Evaluated by the Compensation Committee with reference to the current
status of efforts in CO emissions reduction as well as external evaluations
by DJSI, CDP, MSCI, and Sustainalytics, in order to achieve the Medium-termManagement Plan target (to be halved in 2025 compared to FY 2013).

70%

Non-financial
indicatorsCO emission reduction
External ESG assessment

Individual
performance

Indicators

Individual performance (assessment)

Application

Base amount by job position (individual) x
assessment rate (0-120%)30%

Calculation formula

Kansai Electric Power Group Integrated Report 2023

100% when minus 65 billion yen is achieved; 10%
increase/decrease for every 10-billion-yen deviation

Base amount of performance-based compensation by job position (annual amount)• Director, Representative Executive Officer and President: 22.8 million yen• Director, Representative Executive Officer and Vice President: 17.4 million yen• Representative Executive Vice President: 16.1 million yen• Executive Vice President: 11.7 million yen
Company-wide performance varies in the range of 0 to 150% depending on the degreeof achievement of performance indicators.
Individual performance varies within a range of 0% to 120%, depending on theperformance results of each individual. Individual performance shall not be applicable
but company-wide performance shall be applicable by 100% to the President.

We try to instill in our subsidiaries the basic approaches tomanagement and action standards that are embodied in, forexample, the Kansai Electric Power Group Purpose & Values
and the Kansai Electric Power Group Code of Conduct. In
addition, we ensure the propriety of our corporate group’sbusiness activities at our subsidiaries by supporting them andproviding advice on the arrangement of their autonomous
management structures based on our internal regulations
related to subsidiary management.
We also strive to prevent any losses to the corporate valueof the Group as a whole, or at least keep them to a minimum,by participating in important decision-making by our
subsidiaries, and periodically checking on their management
status. Moreover, our Executive Meeting deliberates execution
directions and plans for important business, particularly forthe core companies responsible for businesses that are thepillars for the future growth of the Group.
Specifically, based on the performance evaluation system,
we set financial and non-financial targets at the beginning ofeach fiscal year after confirming consistency between theplans and policies of each company and policies of the Group,
confirming progress through communication by senior
management during and at the end of each fiscal year.
Additionally, we make prior adjustments to individual plans,such as investments of a certain scale or making inroads into
new business fields. Through these efforts, we are striving toenhance the corporate value of our entire Group and prevent
it from being undermined.

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6. Effectiveness evaluation and response policies for the Board of Directors
The Company evaluates the effectiveness of the Board of Directors, etc. and takes proper steps to improve corporate governance, including operation of the Board of Directors to enhance the functions of
the Board of Directors, Nominating Committee, Compensation Committee, and Audit Committee.
(1) T he major issues based on the results of the effectiveness evaluation for fiscal 2021 and the main initiatives for fiscal 2022
Major issues for fiscal 2021
① Enhancement of opportunities forcommunication between outside
directors and management② Increasingly substantive discussions
on important medium- and long-term
themesMain initiatives for fiscal 2022
We proactively created opportunities for informal communication between
outside directors and management to improve mutual understanding by, forinstance, holding opinion exchange meetings for directors and training sessions
designed for all directors and executive officers. In addition, we held substantive
discussions on important medium- to long-term issues such as the businessportfolio and medium-term management plan.

③ How the Board of Directors shouldsupervise each audit function, etc.

We strived to improve the effectiveness of the supervisory function of the Boardof Directors, etc. by establishing opportunities to share awareness of therelationship between the Board of Directors and the Audit Committee and byenhancing opinion exchanges with internal audit departments, etc.

④ Confirmation of training for officers
and implementation status

We have stepped up the Board of Directors’ supervision of officer training byreporting to the Board of Directors on the status of implementation and future
direction of officer training, reflecting the Board of Directors’ opinions as
appropriate.

⑤ Further improvement in thecomposition of the Board of Directors

The Nominating Committee discussed, on a continual basis, the board
succession, including the selection of candidates for the Board of Directors to be
proposed at the General Shareholders’ Meeting, in order to ensure that the board
is composed taking into account diversity in terms of gender, age, work history,
and other aspects.

(3) General comments on effectiveness evaluation for fiscal 2022
General comments on survey results for fiscal 2022
The results confirmed the strengths of the Board of Directors: “substantive discussions regarding
management strategy and other important medium- to long-term themes,” which is the role of the Boardof Directors, and “appropriate management of the Board of Directors, such as providing sufficient
information and ensuring sufficient time for deliberation, as well as the number of the board members”
that support the substantive discussions. The survey analysis also confirmed that the common strength of
the Nominating, Compensation, and Audit Committees is the “appropriate management of agenda
setting, sufficient provision of information, etc.”
In addition, because the results showed that the evaluation items associated with the improvement
status for the previous year’s major issues had “generally improved,” we have confirmed that theeffectiveness of the Board of Directors, etc. has been steadily improving.
On the other hand, we have also confirmed analysis results showing that organizational climate reformand compliance promotion are major issues we must focus on due to the occurrence of incidents
described in “(Reference) Details Regarding Inappropriate Incidents Related to Compliance (on pages
54-57 of the Business Report for fiscal 2022).”
The Group is determined to reform its organizational climate so that each and every employee takes
thorough compliance seriously “with a sense of commitment” and puts it into practice, while at the sametime fundamentally strengthening internal controls across the Group. The Board of Directors will enhance
its supervisory function over these and other efforts on the executive side, and continuously strive toimprove effectiveness.

(4) Major future issues and direction for addressing the issues
Major future issues① Further efforts toward
organizational climate reformand stricter compliance(2) Overview of effectiveness evaluation for fiscal 2022
Evaluation/analysis method• Using a third-party organization, we conducted asurvey targeting all directors (5-point scale and freeanswer) on the effectiveness of the Board of
Directors, etc.
• Based on the analysis of the survey results by thethird-party organization, the effectiveness of theBoard of Directors, etc. was deliberated andevaluated at the Board of Directors meeting held on
April 27, 2023.

Kansai Electric Power Group Integrated Report 2023

Evaluation items
1. Role/function of the Board of Directors
2. Status of efforts for the business improvement plan
3. Composition/size of the Board of Directors
4. Operation of the Board of Directors
5.	Operation of the Nominating, Compensation, and Audit
Committees
6. Role of and support system for outside directors
7. Relationships with shareholders, investors, etc.
8. Improvement status of last year’s major issues② Supervision of the Nominating
and Compensation Committees
by the Board of Directors③ Information disclosure andexplanation to shareholders,investors, etc.
④ Further improvement of thecomposition of the Board of
Directors

Direction for addressing future issues
The Board of Directors will enhance its supervisory function andvigorously push forward reform of the organizational climate andreinforcement of compliance by improving reporting details anddeliberation time regarding the status of initiatives headed by the
Emergency Response Division and the development and operationof internal controls, including the whistleblowing system.
The Board of Directors will improve its supervisory function by
sharing awareness of matters that the Board of Directors shouldsupervise with respect to nomination and compensation, and by
ensuring sufficient reporting at the Board of Directors.
The Board of Directors will enhance its supervisory function from theperspective of shareholders, investors, etc., with regard to the way
information on important matters is disclosed and on providing
opportunities for information dissemination in order to build
appropriate relationships with shareholders, investors, etc.
The Nominating Committee will continue to discuss the ideal
composition of the Board of Directors in view of the future businessenvironment.

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Corporate Governance Systems
Operating status of fiscal 2022
Board of Directors
Based on laws and regulations and the rules for the Board of
Directors, the Board of Directors resolves important mattersrelated to the management of the Group, such as proposals
submitted to the General Shareholders’ Meeting, compositionof each committee, appointment/change of executive officers,
and personnel measures for officers. Furthermore, the progressof efforts to address issues* including the violation of theElectricity Business Act due to improper handling of
information on power producer and supplier (PPS) customers,
business portfolio, progress status of our medium-term
management plan including quarterly financial results,
operational status of internal control, and other matters arereported and deliberated on a regular basis. For the resolutions
and deliberation stated above, with the aim of ensuring fulfilling
discussions at the Board of Directors and strengthening
corporate governance, in fiscal 2022, three opinion exchange
meetings were held by directors and one meeting was held only
attended by independent outside directors to discuss a wide
range of themes such as management issues and the direction of
future growth strategies of the Company. In addition, in fiscal
2022, based on the opinion of outside directors that they would
like opportunities to take more time in the discussion ofmanagement issues, both internally and externally, a joint training
session was held by directors and executive officers. At thesession, important themes such as “Power source portfolio
toward 2050” and “Organizational climate reform and humancapital innovation” were discussed over two days.
Views obtained through these opinion exchange and othermeetings and opportunities are reflected in our business
management and subsequent discussions at the Board of
Directors.
Furthermore, throughout the year, our independent outside

Kansai Electric Power Group Integrated Report 2023

directors actively seek to understand the Company’s situation
by receiving advance briefings on Board of Directors agenda
items, inspecting front-line workplaces such as nuclear power
plants, and engaging in dialogue with employees.

* As the Business Improvement Plan was formulated following inappropriate

compliance-related incidents, the Board of Directors has conducted special
supervision to verify the achievement status of a series of reforms, includingorganizational climate reform and radical strengthening of internal controls, from acontinuous and objective viewpoint. Through the supervision, the Board monitors
the implementation status of the Business Improvement Plan and provides guidance.

Nominating Committee
The Committee decides the content of proposals forappointment and dismissal of directors, submitted to theGeneral Shareholders’ Meeting, as well as the policy forselecting directors, and deliberates the details of a succession
plan for the Executive Officer and President, successor
development process, commissioning of advisors, and othermatters. For fiscal 2022, priority items discussed and opinions
exchanged include the following:
Operation of succession plan for Executive Officer andPresident, and development of successor candidates
Director change proposals for the General Shareholders’ Meeting
Succession plan for outside directors
Details of personnel measures for officers
●

●
●
●

Compensation Committee
The Committee decides on the policy and details ofcompensation of respective directors and executive officers,
and deliberates on compensation for advisors. For fiscal 2022,
priority items discussed and opinions exchanged include thefollowing:
Policy on determining compensation for the Company’s
officers based on the results of surveys on compensation
standards of other companies, trends in compensation
policies, etc.
●●

Performance-based compensation system and goal setting(including introduction of ESG-related indices)

Audit Committee
The Committee formulates audit plans encompassing
important matters related to the Group’s management decided
by the Board of Directors, and performs audits from theperspective of whether or not the Group is conducting
business activities legally and appropriately, and making
decisions and executing business properly and reasonably toprevent risks and improve corporate value. Audit reports andopinions therein are provided to the Board of Directors andexecutive officers. Priority audits and other items conducted infiscal 2022 include the following:
Status of efforts to strengthen compliance and governanceStatus of efforts made in line with the medium-term
management plan
Dialogue with front-line workers
Response to proceedings for damages against our former
executives filed by the Company concerning problems such asreceiving cash and gifts and remuneration for part-time service
after retirement.
The Audit Committee is briefed on audit plans from our
accounting auditor at the beginning of the fiscal year. As for the
implementation status of the plans, the Committee receives
reports on the quarterly review status in every quarter, as well
as reports on annual audit status at the interim period and theend of the fiscal year, and thereby exchange opinions. In thisway, a close cooperative relationship is maintained between
them. The Committee also holds discussions with theaccounting auditor multiple times during the fiscal year to
exchange opinions on Key Audit Matters (KAM).
The main examples of the cooperative relationship between
the Audit Committee and the accounting auditor are as follows.
●
●

●
●

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Item

PeriodOverview

Briefing on audit plans

July*1The Audit Committee is briefed on audit plans for the current fiscal year.

Quarterly review report

July, October, January

The Audit Committee receives report on quarterly review results from the accounting auditor
and exchanges opinions.

Interim audit report

December

The Audit Committee receives an interim report on accounting auditor’s audit andexchanges opinions.

Year-end audit report

May, June

The Audit Committee receives year-end report on the accounting auditor’s audit (includinginternal control audit status) as well as a detailed report on the status of the accounting
auditor’s performance of duties.

Key Audit Matters (KAM)

September, December,
May, June

The Audit Committee members and the accounting auditor discuss and exchange opinions
about KAM*2.

*1 Throughout the fiscal year, the Committee receives reports of revisions to the audit plan, if any, at the time when each report is made.
*2 The Committee also confirms the appropriateness and consistency of KAM-related information disclosure.
Activities of directors
Board of Directors, Nominating Committee, Compensation Committee, and Audit Committee meetings held in fiscal 2022 and theattendance status of respective directors are as follows.
Name

Meetings held and attendance status
Board of Directors

Nominating Committee

Compensation Committee

Audit Committee

Sadayuki Sakakibara*◎100% (14/14 attendances)◎100% (7/7 attendances)

100% (2/2 attendances)

Takamune Okihara*

100% (14/14 attendances)

100% (7/7 attendances)

100% (1/1 attendance)

Tetsuya Kobayashi*

79% (11/14 attendances)

71% (5/7 attendances)

100% (2/2 attendances)

Shigeo Sasaki*

100% (14/14 attendances)−

Atsuko Kaga*

93% (13/14 attendances)−

Hiroshi Tomono*

100% (14/14 attendances)−

Kazuko Takamatsu*

100% (14/14 attendances)

Fumio Naito*

100% (14/14 attendances)−−

Nozomu Mori

100% (14/14 attendances)

−

−

−

Koji Inada

93% (13/14 attendances)

−

−

−

Nobuhiro Nishizawa

100% (11/11 attendances)

−

−

−

Yasushi Sugimoto

100% (14/14 attendances)−−

100% (15/15 attendances)

Yasuji Shimamoto

100% (14/14 attendances)−−

100% (15/15 attendances)

Kansai Electric Power Group Integrated Report 2023

100% (7/7 attendances)−
100% (2/2 attendances)−◎100% (1/1 attendance)−
100% (11/11 attendances)−
100% (15/15 attendances)
100% (4/4 attendances)◎100% (15/15 attendances)−
100% (15/15 attendances)

Notes:
1 T he percentages are rounded off to the whole number. The numbers inparentheses indicate the number of attendances/the number of meetings held
during the term of office.
2 represents the chairperson of the board/committee.
3 * represents an independent outside director.

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ComplianceKansai Electric Power Group Integrated Report 2023

* See page 117 for details regarding risk management.
Board of Directors
PeriodicallyreportingCompliance Promotion Headquarters

Internal Control Board

Organizational
Climate Reform
Committee

Reporting

Nominating Committee

Compensation Committee

President

Division/Office

In order to radically strengthen our system of observing laws
and regulations, the Group has decided to rebuild its
compliance system by utilizing external human resources, andwe established a Compliance Committee and an Office ofCompliance Promotion in April 2020.
Aiming to strengthen supervisory functions related tocompliance, the Compliance Committee is organized directly
under the Board of Directors as a committee independent
from the President and other executive officers. The majorityof the committee members, including the chairperson, arefrom outside the Company. (See page 103.)
In July 2023, for centrally promoting compliance and risk
management throughout the Group, the Compliance
Promotion Headquarters was newly set up by integratingcompliance on wheeling service guidelines, risk management,internal control, and other functions into the Office ofCompliance Promotion. At the same time, the position of Chief
Compliance Officer (CCO) was established as the officer withultimate responsibility for compliance promotion. Additionally,
the Internal Control Board was set up to deliberate internal
controls, including risk management, for the entire Group*. In
addition, aiming to enhance the effectiveness of internal
controls at operating divisions, including front lines, each
operating division now has an Internal Control and Compliance
Officer to step up cooperation with corporate divisions.
The Compliance Promotion Headquarters is composed ofstaff members with legal knowledge as well as diverse work
experience. In addition to formulating and implementing theGroup’s compliance promotion plans and responding to
problematic events, the Headquarters provides training forcompliance, encourages compliance with laws andregulations in cooperation with corporate divisions, andconducts interviews and provides guidance on efforts madeby each operating division, etc.
The Headquarters reports on and brings up compliancerelated events for discussion to the Compliance Committee.
With the guidance, advice and supervision of the Compliance
Committee, the President and other executive officers aresubsequently able to act and take concrete measures.

Internal Control andCompliance Officer■ Compliance system

Audit Committee

Guidance,
advice andsupervision

Compliance
Committee■ Efforts to promote compliance

The Group assesses compliance risks every year and selects
compliance risk items to be addressed. For those risks, wedevelop and implement concrete preventive measures as acompliance promotion plan every fiscal year.
For fiscal 2023, major items for promoting compliance thatshould be recognized and worked on by the entire Group are“rebuilding a mechanism to ensure compliance with laws andregulations, with an appropriate competitive environment
and an organization to execute them,” “further heightening
sensitivity to compliance risks,” “creating a workplace where itis easier for employees to speak out and where complianceissues are tackled on an organizational basis,” and “carryingout flexible compliance promotion activities tailored to theworkplace.”
Going forward, we will steadily implement this plan andadd new initiatives as needed.

・・・
ReportingOutsidemembers(The majority ofmembers, including
the Committee
Chairperson)

Insidemembers

Compliance Promotion Plan for fiscal 2023 • As of May 31, 2023

(President, etc.)<Reference> Compliance Committee meetings held in
fiscal 2022
Meetings of the Compliance Committee are held regularly ona quarterly basis, and will also be held swiftly and flexibly
when a particularly problematic event arises.
A total of 10 meetings were held in fiscal 2022, focusing on
investigation reports on problematic events related tocompliance, as well as the deliberation of a compliancepromotion plan and compliance-related training.

1. R ebuilding a mechanism to ensure compliance withlaws and regulations, with an appropriate competitiveenvironment and an organization to execute them<Strengthening internal control and risk management
systems and mechanisms>
We will create mechanisms and rules to promote compliance,
fundamentally strengthen risk management and internal
controls groupwide, and rebuild the organization to centrally
execute and promote them.

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Compliance2. Further heightening sensitivity to compliance risks<Provision of training>
Effective compliance training that goes beyond theacquisition of knowledge to truly ensure and practicecompliance in routine work is provided across the Group,
including education for directors and employees at our groupcompanies.
<Implementation of awareness-raising activities>
We will raise employees’ awareness of compliance throughcommunication between outside members of theCompliance Committee and employees, introduction ofinternal and external case studies, and other measures.
<Ingraining compliance awareness into routine work>
We will ensure that everyone is familiar with laws, regulations,and internal rules, so both superiors and subordinates
understand the risks of problematic events related tocompliance that may occur during routine work and share
their awareness.
3. Creating a workplace where it is easier for employees
to speak out and where compliance issues are tackled
on an organizational basis<Initiatives to create a workplace with high psychologicalsafety>We will create a workplace with high “psychological safety”
where subordinates feel free to consult with their superiors
and express their opinions, enhancing communication
between them.
<Initiatives to encourage employee opinions>
We will promote communication between the compliancepromotion manager and the compliance promotion staff at

Kansai Electric Power Group Integrated Report 2023

each site, and will also enhance communication between thehead office and the workplaces.
<Initiatives to promote and utilize whistleblowing>
We will create a system to lower the psychological hurdle forwhistleblowing by introducing an internal leniency systemand by other means, carrying out awareness-raising activities
toward better understanding and increased use of ourwhistleblowing system.
4. Carrying out flexible compliance promotion activities
tailored to the workplace<Sharing workplace initiatives>
To boost compliance activities at each base, informationexchange meetings will be held among divisions and groupcompanies according to the category and description ofbusiness, number of employees, work arrangements, etc.
<Awareness-raising activities on rules regarding gifts andhospitality>
We will promote employees’ understanding of the purpose of
these rules through communication with each division,
enhanced Q&A sessions, etc. and consider revising theRegulations on Handling of Gifts and Hospitality to makethem easier to understand.
<Appropriate review of internal rules, etc.>
We will urge periodic reviews (simplification, abolition, etc.) ofinternal rules and business operations that do not correspondwith actual business situations, as they can result in a decline
in normative consciousness and other undesirable outcomes.

■ Compliance Hotline

The Kansai Electric Power Group Code of Conduct stipulates
how to report to and consult with the hotline when feelingdoubt or discomfort related to compliance.
Our Compliance Hotline has been set up for consultation
when people have doubts related to compliance in theirworkplaces, and in regard to various legal violations andimproper work conduct. This hotline is available not only toofficers and employees of our group companies andcontractors but also to those retired or resigned from theabove. The hotline is designed to prevent, detect early, andcorrect inappropriate behavior in terms of compliance. If
required, a lawyer specializing in the field relevant to eachissue will respond, and they can request the Compliance
Committee or Audit Committee to take effective measures attheir own discretion.
We are working to create an environment offering a more
approachable service that can accept anonymous
consultations and that allocates female consultants, forexample, and are strictly prohibiting detrimental treatment ofconsulters due to having received consultation. Paying close
attention to protecting the confidentiality of consulters, we
disclose consulters’ names only to the minimum parties
required for fact-finding and taking action, and impose
confidentiality obligations on them. In addition, we proceedwith a fact-finding survey while confirming the intention ofeach consulter.
Considering the importance of using the hotline, withintranet, posters, leaflets, and various educational tools, we arecontinuously informing and encouraging each of our divisions
and group companies to use the hotline.

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Compliance■ Responding to compliance violations

Kansai Electric Power Group Compliance Hotline
Kansai Electric Power Group
employees and others
ReportConsultation

Internal
Hotline(Kansai Electric Power Company Desk/
Kansai Transmission and Distribution Desk)

Consultation

External Hotline
Communication/Instruction
on content of consultation

Report of outcome

Consultation (Compliance Promotion Headquarters, Kansai Electric Power Company/
Secretariat Compliance Promotion Division, Kansai Transmission and Distribution)• Instruct investigation and response to the content
of the consultation. Cooperate and provide support
for the investigation and response as appropriate.
• If necessary, the Consultation Secretariat conducts
an investigation for itself.

Report(outside lawyer desk)If necessary, a lawyer specializing in thefield relevant to the consultation
details responds.

Lawyer’s office
Report of outcome
ReportAudit Committee
Members

Consultation concerning group companies
Office responsible for compliance in group companies
Compliance Committee or responsible executive in group companies
Note: Our group companies also establish and operate hotlines.

Enhancement and improvement of the consultation desk,
including introduction of an internal leniency system
Based on the Business Improvement Plan formulated in May
2023, we will further promote the use of the consultation deskby, for example, informing employees of the post-consultation
process to lower their resistance toward using the system, andalso introduce an internal leniency system. The internalleniency system allows consideration of lessening severity of
the final disciplinary action for employees who voluntarily
report compliance violations to the company. We will
enhance and improve our consultation desk to detect legal
violations and inappropriate business operations at an earlystage and take measures as an organization.

Number of cases
handled by theCompliance Hotline

83
Fiscal 2022 84

Other violations oflaws, rules, etc.
%

Harassment
%

30

39

FY 2022
Breakdown

Fiscal 2021

Information
management

7%<Examples of awareness-raising tools>

Kansai Electric Power Group Integrated Report 2023

Labor
management, etc.

24%

Based on our business improvement plan formulated in fiscal
2019, the Company and Kansai Transmission and Distribution,
Inc. have established a reporting system when a problematic
event occurs, and stipulated the reporting rules for executives
and employees in our internal rules.
In the relevant divisions, should respective division heads
become aware of any information on major violations of laws
and regulations (including omission of procedures stipulated
by laws and regulations) or fraud and other compliance-related
issues that affect the Company’s and the Kansai Transmission
and Distribution’s credibility with the external stakeholders,
they shall immediately report these matters to the Chief
Compliance Officer (CCO). The CCO shall take appropriate
measures and report on these matters to the Compliance
Committee to receive guidance, advice and supervision.
When executives become aware of an event that causes oris likely to cause a compliance issue, they shall report it to theoutside members of the Compliance Committee and the
Chairperson of the Board of Directors. In the same situation,
employees shall report to their superiors. If it is judged
appropriate based on the details of the report, employees canreport to the Compliance Hotline set up inside and outside
the Company, instead of reporting to their superiors. When areport is received, the Hotline shall investigate and take action
in cooperation with relevant divisions and related parties asnecessary. If the investigation reveals a violation of laws andregulations, the relevant divisions and related parties shallpromptly take corrective and preventive measures, and if
necessary, report to the relevant administrative agency andannounce the issue to the news media. The CCO shall also
follow up with related divisions and parties as necessary, andcheck whether the corrective and recurrence prevention
measures are functioning sufficiently, as well as checking if

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Compliance
any compliance issue has reoccurred. If a compliance issue has
reoccurred, the CCO can discuss necessary measures with
relevant divisions as well as other related divisions.

Examples of actions taken in past events of violation<Unmet work experience requirements for construction
management technical certification exam>
On June 18, 2021, a report to the Compliance Hotline revealed
that some employees in our group companies had taken
construction management technical certification exams andobtained certification without satisfying the prescribed work
experience requirements. Based on guidance and advice fromthe Compliance Committee, a third-party committee wasestablished on July 30, 2021 for the purpose of conducting an
objective and thorough investigation, inquiring into thecause, and providing recommendations on recurrence
prevention measures.
The third-party committee investigated 3,372 current
employees and 704 retired employees from 15 companies,
including the Kansai Electric Power Company, as to thefollowing three matters.
①	Unmet work experience requirements for eligibility toreceive the technical certification exam
②	Existence and extent of properties where a person who
did not satisfy work experience requirements was assigned
as a chief engineer or supervisory engineer on site basedon certification that was determined to be inadequate③	The quality of construction work at properties where aperson who did not satisfy work experience requirements
was assigned as a chief engineer or supervisory engineer
on site based on certification that was determined to beinadequate

Kansai Electric Power Group Integrated Report 2023

Results from the investigation by the third-party
committee and the subsequently formulated recurrence
prevention measures were announced on December 20, 2022.

■

Compliance promotion in accordance with thecharacteristics of each division/group company
Promoting compliance in each company divisionand group company

By having each division and group company actively facilitate
the functioning of PDCA cycles and promote compliance, we
seek to have the idea that “compliance is a foundation ofbusiness” permeate and become established throughout theentire Group.
Specifically, each division has created their own“compliance promotion plans” and is striving to implement,
evaluate and improve their promotion efforts. When doing so,they are considering the Company’s basic policies and major
themes, the business and work characteristics of theirdivisions, and compliance risks that could occur in the future
along with changes in the business environment,
unacceptable incidents that occurred in the past both insideand outside the Company, and other factors.
Furthermore, considering our basic policies and major
themes, each of our group companies is promoting
compliance based on the characteristics and sizes of theirbusinesses, as well as other real conditions.

Efforts to prevent overseas bribery
The Group is globally operating business in Asia, North
America, Europe, and many other regions, and we believe thatcomplying with local legislation and rules is a major premisefor global business expansion.
In particular, as tightening of bribery regulations has
become a global trend, we have established internal rules toprevent bribery of foreign public officials, etc., and clarified
prohibited items such as gift-giving and entertainment withwrongful intentions as well as items to be observed. At thesame time, we are continuously informing divisions involved
in international transactions, including the International
Business and Cooperation Division, through training and othermeans. We will continue to strive to prevent inappropriate
bribery through these efforts.

Supporting the efforts of each division and groupcompany
In addition to leading the promotion of efforts of the Group asa whole, the Compliance Promotion Headquarters is
supporting the efforts of each division and group company.

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Financial and Corporate Information

Compliance■ Results of a questionnaire for all employees regarding compliance awareness, etc.

The Company and Kansai Transmission and Distribution, Inc. conduct a “Sustainability questionnaire for all employees (conducted
every year since fiscal 2006)” which includes a survey on compliance awareness. Utilizing the results of the survey, we will continue towork on correcting our corporate structure and fostering a sound organizational climate that emphasizes compliance.

Q

You always act with an awareness of compliance.

Q

You feel that the management has a strong sense of
integrity and is taking the lead in reform of your company.

(%)

(%)
100

96.9

96.8

98.0

80

97.4

70.0

70

62.7

90
60

80

56.8

50
2019

Q

72.1

2020

2021

2019

2022

You are doing your job with a sense of mission.

Q

2020

2021

2022

You find your job rewarding and are proud of it.

(%)

(%)

90

100

90

88.9

88.9

90.2

90.4

80

80

75.8

76.2

2019

2020

83.8

83.0

2021

2022

70

70

60
2019

2020

2021

Survey period: November 7 to November 25, 2022
Respondents: All employees of the Kansai Electric Power Co., Inc. andKansai Transmission and Distribution, Inc.
Number of respondents: 16,614 [Response rate: 89.7%]

Kansai Electric Power Group Integrated Report 2023

2022

[How to read charts]
The graph of secular change shows the transition of the total value of the percentages of “Strongly agree” and“Moderately agree” in all responses.

116Kansai Electric Power Group Overview

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Financial and Corporate Information

Risk Management

In accordance with the Kansai Electric Power Group Risk
Management Rules established in April 2006, risks that havethe potential to affect the achievement of organizational
goals are to be recognized and identified. Then, an
assessment is to be made, followed by implementing
necessary measures to deal with the risks. The impact of riskon the Group is being managed at an appropriate level
through this series of processes.

■ Risk management system

ReportInternal Control Board
Chairperson: Chief Compliance Officer• Major risks are extracted to grasp how they are being managed company-wide. Major risks (next section)

po
rt
Re

Inst
imp ruction
rove s fo
men rt• The gravity of the major risks is evaluated based on their degrees of impact andpossibilities of occurrence, placed on a risk map to understand and manage
the risk management status from a higher perspective.

Improvement

Monitoring

A

P

C

D

Extraction andevaluation of risks

Departments with specialized expertise on each risk area

Areas of risk

Advice,guidance

ReportImplementationof measures

Internal
audit

Cross-organizational risk management
departments

Operating divisions
All business headquarters, Kansai Transmission
and Distribution, Inc., all subsidiaries, etc.

• Basically, each operating division manages
risks autonomously.

Risk map (next section)rtpoKansai Electric Power Group Integrated Report 2023

Executive MeetingRe* See page 112 for a general picture of our compliance promotion system.

Board of Directors
Report as necessaryforions truct enInst provem
imRisks associated with the Group’s business activities are to be
managed autonomously by each operating division.
With the position of “Internal Control and Compliance
Officer” newly set up, each operating division is promoting
autonomous risk management in the division in collaboration
with front-line workplaces, etc., and through risk management
plans and evaluation of results.
Management of risks considered to have crossorganizational importance, such as information security,business management at subsidiaries, human capital base,market risk, financial report reliability, environment, energy
policy, disasters, compliance (including laws and regulations
in a competitive environment), and appropriateness of
procurement, is enhanced by the supervision of departmentswith specialized expertise in each area of such risks thatprovide advice and guidance to the operating divisions on an
as-needed basis.
The Compliance Promotion Headquarters supports these
efforts and centrally promotes compliance, risk management,
etc. for the entire group.*

also reports its risk evaluation results to the Executive Meeting
and, as necessary, the Board of Directors. If necessary, it
improves the structure and system of risk management.
Furthermore, the Office of Internal Auditing conducts
internal auditing on the maintenance and operation of the risk
management system, and we are working to make
improvements based on audit results. In fiscal 2023, we will
clarify issues in our internal control systems, including risk
management, based also on the opinions of external experts,
and consider concrete ways to make improvements.

Moreover, an Internal Control Board has been establishedto put risks under central management. The Chairperson of
the Board, who also serves as the Chief Compliance Officer, isappointed as the Risk Management Officer of the Group, andthe Board strives to manage risks associated with the Group’sbusiness activities at an appropriate level through this system.
The Internal Control Board oversees risk management
plans by, for instance, coordinating cooperation between
corporate divisions and operating divisions that haveexpertise to ensure group-wide risk management. The Board

Office of Internal Auditing■

Our fundamental approach to risk
management• Information security• Business management of subsidiaries• Human capital base
• Market risk
• Reliability of financial reports• Environment• Energy policy• Disasters• Compliance (Including laws and regulations in acompetitive environment)• Appropriateness of procurement

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Revised downward considering the fact that no risks
occurred in the most recent fiscal years.
Major risks
Organizational
goals/Classification

E

S

G

Major risks

Gravity
FY 2022 FY 2023

《1》Climate change

High《2》Environmental issues(violation of environmental
laws and regulations, etc.)

Medium Medium《3》Release of radioactive
materials

Huge

Huge

《4》Human capital baseHigh

Medium

High

High

High

《6》Information security

High

High

《7》Stagnation of innovation

Medium Medium
High

High

Major risks

Gravity
FY 2022 FY 2023

《9》Market risk
(fluctuations in market
conditions)

High

High

Energy《10》Decrease in profits
from energy business

High

High

Transmission &Distribution《11》Decrease in profits
from powertransmission anddistribution businessMediumLow

Information &Telecommunications《12》Decrease in profits
from information andtelecommunications
business

MediumLow

Life/Business
Solution《13》Decrease in profits
from life/businesssolution businessMediumLow

Business environment《5》Natural disasters, changes ininternational situations, etc.

《8》Governance / Compliance

Organizational goals/
Classification

Undershooting of profit targets

We identify major risks that could greatly affect our Group’sbusiness activities, ascertaining and evaluating how they arebeing managed company-wide. These major risks are
systematically sorted out not only for our Group’s sustainablegrowth but also with the aim of achieving our financial targets
and ESG goals, to contribute to the sustainable developmentof society by solving global social issues covered under SDGs.
The gravity of the major risks is evaluated based on theirdegrees of impact and possibilities of occurrence, classified
and organized on a risk map to clarify, manage, and evaluate
how the risks are being handled from a higher perspective,
and instructions for improvement are given to operating
divisions, as necessary, based on the evaluation results.
For details of and countermeasures for major risks that
could affect the Group’s business results and financial
position, please refer to the “Operational risks” section of our
securities report for the fiscal year ended March 31, 2023 andfinancial results for the three months ended June 30, 2023
(only available in Japanese).
<Reason for changes in Gravity>《4》	Human capital base: Following the consolidation of theaforementioned major risks, reevaluation was made on
this occasion with the risk event defined as an obstacle
to stable securement of diverse and talented humancapital. As a result, the gravity was revised downward.
《11》	Decrease in profits from power transmission and《13》	Decrease in profits from life/business solution business:

Achievement of financial targets■ Risk management status

distribution business: Revised downward considering
mitigation of the risk with the approval of our application
for the new wheeling pricing system.
《12》	Decrease in profits from information andtelecommunications business: Revised downward
considering the fact that no risks occurred in the mostrecent fiscal years.

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Financial and Corporate Information

Risk Management■ Investment risk management

Risk map
Huge<Investment evaluation system>
Regarding investment in the domestic renewable energy
business, international and our group businesses, and new
businesses, in addition to the investment appropriatenessevaluations, we have established and operated a series ofmanagement processes including post-investment
monitoring, as well as consideration and implementation ofdisinvestment/replanning measures. The internal meeting
structure (Investment Evaluation Committee), which consistsof executives in charge of business promotion and corporate
divisions, deliberates and examines such processes based on
their specialized knowledge. In these ways, we support
appropriate decision-making for individual projects and taketimely measures when risks manifest to manage investment
risks suitably. We regularly report these states of management
to the Executive Meeting, and we reform frameworks andmethods for evaluation and management as necessary.

《3》Release ofradioactive
materials• Raises doubts aboutbusiness continuity

High
Exerts major impact on
corporate management
and takes time to recover• “High” in monetary value• Extended power outage• Permanent disruption/
Not being able to return
to work/Death• News coverage andresponse across thecountry《1》Climate change《5》Natural disasters,changes in internationalsituations, etc.
《6》Information security《8》G overnance / Compliance《9》Market risk (fluctuations
in market conditions)《10》Decrease in profits fromenergy business《4》Human capital
base

Degree of impact

MediumExerts a certain degree of
impact on corporate
management• “Medium” in monetaryvalue• Medium-scale power
outage• Serious injury•N ews coverage andresponse in the Kansai area《11》Decrease in profits frompower transmission anddistribution business《12》Decrease in profits
from information andtelecommunications
business《13》Decrease in profits fromlife/business solution
business

Low
Exerts small impact on
corporate management• “Low” in monetary value• Small-scale power outage• Minor injury• News coverage andresponse in specific areas

Minimum• Extremely unlikely tomaterialize

Gravity
Low

Low

Medium• Less than once/10 years • O nce or more/10 years • Unlikely to materialize
Less than once/3 years•P
within 10 years ossibly materialize within
10 years

Probability of occurrence
MediumHigh

Huge

Red font: Perspective of achieving financial targets
Black font: Perspective of ESG

Kansai Electric Power Group Integrated Report 2023

《2》Environmental issues(violation of environmental
laws and regulations, etc.)《7》Stagnation of innovation

High•O nce or more/3 years•P ossibly materialize within
3 years

Maximum•O nce or more/year•H as already materialized andis likely to continue<Investment appropriateness evaluations>
When implementing investments, along with conformity tocompany-wide policies for investment goals and objectives,with the assurance of profitability as a prerequisite, we are
evaluating the appropriateness of each project based on
sufficiently examining risks.
<Monitoring>
After making investments, we regularly conduct monitoringof individual projects to confirm their states of achieving
investment objectives and profitability. We demand theimplementation of necessary countermeasures when
profitability decreases or other issues arise.

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Risk Management<Investigations on disinvestment and replanning>
For projects that have greatly worsened profitability or thathave decreased retention value, based on comprehensive
consideration of risks and other conditions, we promptly
investigate and deliberate disinvestment and replanning as
we strive to appropriately deal with risks.

■ Supply chain management
Kansai Electric Power Group Basic Procurement Policy
In January 2021, the Kansai Electric Power Group announced
the Kansai Electric Power Group Basic Procurement Policy(hereinafter, the “Policy”) to endeavor to carry out sustainable,transparent, and responsible procurement in all businessactivities.
In accordance with the Kansai Electric Power Group Codeof Conduct and the Policy, we will endeavor to carry out
sustainable, transparent, and responsible procurement
activities in all business activities. Our procurement activities
are supported by our suppliers, who we view as valuable
partners, and we will place importance on communication as
we move forward with procurement initiatives.
The Sourcing and Procurement Division holds in-house
discussions on the Policy and provides new employee
training, for the purpose of disseminating and implementing
the Policy.
We make use of supplier registration and otheropportunities to explain the Policy to our suppliers and ask fortheir cooperation in fact-finding surveys, etc. to monitor how
sustainability-related tasks are addressed.

Kansai Electric Power Group Integrated Report 2023

1. Practice and ensure strict compliance.
With the practice and ensuring of strict compliance positioned as thefoundation to all procurement activities, we shall thoroughly observe
all relevant laws, regulations, and morals thereof.
We shall also give due consideration to the strict management
and protection of personal and confidential information, as well as
intellectual property.

4. Establish strong partnerships.
We shall establish strong partnerships with our suppliers bydeepening bilateral communication and working together to make
improvements. We shall also strive to build relationships toward
mutual development through collaboration to optimize the entire
supply chain, from material procurement, manufacturing, andlogistics through to maintenance.

2. Carry out transparent and responsible procurement activities.
We shall carry out highly transparent and responsible procurement
activities. We shall not participate in bribery or other corrupt conduct
with the goal of obtaining profits unfairly nor shall we provide
convenience only to specific individuals or companies. Furthermore,
we shall have no relationship with antisocial forces or organizations.
We shall expand our business through new transactions withcompanies at home and abroad. When selecting suppliers, selection
shall be conducted in a fair and equitable manner according to the
supplier selection criteria outlined below, taking into consideration
economic and social rationality.

5. Ensure safety.
By making the assurance of safety the top priority in all activities, weshall thoroughly implement measures to prevent occupational
accidents and occupational diseases, and to ensure public safety.

Criteria for selecting suppliers:
We shall select suppliers by considering factors including
thorough compliance implementation; respect for humanrights; safety; quality; level of technical expertise; attention toenvironmental considerations; business conditions; willingness
to maintain a relationship of trust; price; adherence to delivery/
construction schedules; adherence to maintenance andmanagement standards; provision of after-sales service; andadequacy of response to accidents and defects.

7. A
 lways consider the environment and contribute to local
communities.
We shall promote procurement of materials with low environmental
impacts to help build a decarbonized, recycling-oriented society. We
shall also contribute to the development of local communities incooperation with our suppliers.

3. Respect human rights.
With respect for human rights, we shall not be involved in any
forms of discrimination or inhumane treatment (forced labor, childlabor, etc.). We shall also respect workers’ rights (freedom of
association, collective bargaining rights, payment of appropriate
wages, etc.).

6. P
 romote cost reduction and quality improvement efforts.
We shall promote sustainable low-cost procurement efforts by reducing
costs through technological innovation and new ideas, as well as bystrengthening cooperation with our suppliers. Moreover, for the sakeof our customers, we shall work to maintain and improve the quality
and technical expertise of the products and services we provide.

8. Achieve continuous and stable procurement.
Together with our suppliers, we shall seek to ensure continuous andstable procurement by improving our methods of placing orders andother means. Moreover, in preparation for the occurrence ofaccidents and natural disasters, as well as the spread of infectious
diseases, we shall thoroughly implement crisis management in asystematic manner. In such emergency events, we shall endeavor topromptly arrange necessary materials and equipment.

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Procurement activities in line with the Declaration
on Partnership Building
In October 2020, we announced our Declaration on Partnership
Building.
In order to implement procurement activities in line withthis declaration, we inform both internal and external parties ofthe details of the declaration and sincerely respond to requests
and consultations from our suppliers, thereby endeavoring tobuild a relationship of co-existence and co-prosperity.

■ Information security initiatives

Vice President] and deploy Information Security Managers topromote specific efforts in each workplace.
In addition, our group companies are undertaking
independent efforts based on the Kansai Electric PowerGroup Information Security Guidelines. With this and otherguidance and support from our Company, we are raising thesecurity level of the entire Group.
Director responsible: M akoto Araki [Kansai Electric Power CISO
(Executive Vice President)]
Deliberative body: Executive Meeting
Management office: Cyber Security Administration Group,
Office of IT Strategy(Information Security Management Office)Basic policy
The Company believes that one key duty is to advance
information security efforts to ensure the safe and stablesupply of power and to protect customer information in ourpossession. In particular, amid increasing cyber attacks aroundthe world and the targeting of important infrastructure
operators, information security management is being
promoted by strengthening cyber security measures basedon the relevant laws, regulations, and guidelines related tocyber security management along with in-house rules. At thesame time, our in-house rules and systems are revised on acontinual basis as a countermeasure against improper
handling of personal information. As for the promotion of
economic security, necessary measures will be taken as soon
as the details related to the system are finalized.

Information security promotion system for theentire Group

President
CISO, Chief Information Security Officer (Executive Vice President)

Information Security Management Office
Organizational
measures

Personnel
measuresPhysicalmeasures

Technical
measures

Development ofa responsibility
system andin-house rules

Implementationof training/practice

Entrance and exit
management
Document
control

Login authentication
Access management
Encryption

Head of each division, etc.

Information Security Promotion Officer

Information Security Manager

Information Security Manager

Employees

Employees

Kansai Electric PowerGroup Companies

Efforts for cyber security measures
By quickly recognizing threats such as security incidents andvulnerabilities that occur outside the Company, as well as issues
with our Information Technology (IT) systems used in our daily
work and all Operational Technology (OT) systems related to theprovision of a stable power supply, we are continuously
implementing necessary security measures.
Specifically, security levels are evaluated for IT and OT systems
based on a global standard framework, necessary measures aretaken, and monitoring is carried out 24 hours a day, 365 days ayear at dedicated IT and OT monitoring centers. In addition to an
emergency response system established in preparation forincidents, we are continuing to provide drills for how to respondto cyber attacks as well as relevant training for employees.
We are gathering information about cyber attacks that occur
outside the Company and the latest security information
through, for example, the activities of the Japan Electricity
Information Sharing and Analysis Center (JE-ISAC*), which is anorganization that undertakes the sharing and analysis of cyberattack information among electric power businesses. Moreover,countermeasures are reviewed as needed.

* An organization where business operators share and analyze information fromthe perspective of cyber security in order to ensure the stability of the supply ofelectricity in Japan.

In our corporate information security promotion system, we
have a Chief Information Security Officer (CISO) [Executive
24/7/365 monitoring at our monitoring center

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Respect for Human Rights■ Respect for human rights
Basic policy
As stated in the Kansai Electric Power Group Code of Conductthat our Group regards human rights as a universal value
shared by the international community, supports international
norms on human rights, and respects human rights in all its
business activities, we have been promoting initiatives toencourage the respect of human rights.
Today, in light of the heightened awareness of respect forhuman rights in society, including the issuance of the National
Action Plan on Business and Human Rights (NAP), in
December 2021 we established the Kansai Electric PowerGroup Human Rights Policy in compliance with the Guiding
Principles on Business and Human Rights.
This policy serves as a top-level human rights policy basedon the Kansai Electric Power Group Management Philosophy
Purpose & Values and the Kansai Electric Power Group Codeof Conduct.
In accordance with the International Bill of Human Rights,
the Declaration on Fundamental Principles and Rights at Workof the International Labour Organization (ILO), andinternational human rights norms, the Group is committed tohuman rights due diligence, preventing and reducing
negative impacts on human rights in various forms of humanrights violations such as human trafficking, forced labor, andchild labor related to business activities. We will fulfill our
corporate responsibility for respecting human rights andsupport the realization of a society where the dignity andrights of all human beings are respected.

Kansai Electric Power Group Integrated Report 2023

Human rights due diligence
Human rights due diligence system
We will identify negative impacts (human rights risks)
associated with our business activities and report the status ofinitiatives toward prevention and reduction and other mattersto the Sustainability Promotion Council chaired by the
President, confirming the implementation status of humanrights due diligence at this Council.
Sustainability Promotion Council
Chair: President
ReportOffice of Corporate Planning, Office of Human Resources andSafety Management, Sourcing and Procurement Division
Coordination / Confirmation

reduce negative impacts on human rights as necessary. In
fiscal 2023, in addition to the above-stated initiatives, we will
identify and assess human rights risks with expanded targets.

Remedy desks
The Kansai Electric Power Co., Inc. and Kansai Transmission
and Distribution, Inc. accept consultations not only from
employees but from all stakeholders. With the Compliance
Hotline and the Human Rights and Harassment Hotline inplace, employees are informed of these through our internal
portal site, training, and other means. For customers, local
communities, suppliers, and other stakeholders, consultation
is offered through “Contact” on our website and by othermeans.

Internal organizations and affiliated companies
Implementation of human rights due diligence
Identification andassessment of humanrights risks

Prevention and reductionof human rights risks

Explanation andinformation disclosure

Assessment of initiative
effectivenessImplementation status of human rights due diligence
Since fiscal 2022, the Company has been conducting humanrights due diligence along its supply chain.
This fiscal year, targeting 98 major suppliers, we conducted
a questionnaire survey that includes items such as forcedlabor, child labor, and conflict minerals. (Questionnaire
response rate: 100%)
Based on the survey results, we are working to prevent and

Dialogue and consultation
The Kansai Electric Power Co., Inc. and Kansai Transmission
and Distribution, Inc. have formulated a human rights policy
and implemented awareness-raising activities, seeking advice
from outside experts.
We will continue to advance initiatives demonstrating
respect for human rights through dialogue and consultation
with our stakeholders.

Initiatives for raising human rights awareness andharassment prevention
The Kansai Electric Power Co., Inc. and Kansai Transmission
and Distribution, Inc. provide human rights training tomanagement and all employees on a continuous basis todeepen their understanding and recognition of our corporate

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Respect for Human Rights
responsibility to respect human rights, and to enable eachand every employee to take responsible action in all businessactivities.
In fiscal 2022, for the Kansai Electric Power Group Human
Rights Policy to permeate, we provided a human rights
e-learning program targeting all employees, “Business andHuman Rights,” and held group discussions using case studies
to promote understanding of respect for human rights, which
requires the commitment of enterprises.
In addition, we carry out awareness-raising activities on acontinual basis to create a workplace climate that does nottolerate any kind of harassment.
Distinctive training and attendance in FY 2022
Training details

Attendance

Human rights e-learning program,“Business and Human Rights”

14,496

Group discussion, “Business and Human
Rights”

11,042

Human rights lecture on “Business andHuman Rights”
Trends in human rights issues andinitiatives at the Kansai Electric PowerGroup

Promotionmembers,
managers andothers220

Human rights training for executives,“Awareness of the times and human rights
Executives
required for corporate management”—In light of the evolution of AI andand others
“Guiding Principles on Business andHuman Rights”—
Workplace discussion on harassment
prevention

Kansai Electric Power Group Integrated Report 2023

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7,421

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Financial and Corporate Information

Financial Statements The Kansai Electric Power Company, Incorporated and Its Subsidiaries March 31, 2023
Five-Year Trends in Key Data
Non-Consolidated Basis

2019—

Operating Revenues (Billions of Yen)

2020
—

2021
—

Consolidated Basis

2022
—

2023

Non-Consolidated Basis

2019

2020

2021

2022

2023

—

3,307.6

3,184.2

3,092.3

2,851.8

3,951.8

Operating Income (Billions of Yen)

—

—

—

—

—

204.8

206.9

145.7

99.3

(52.0)

Ordinary Income (Billions of Yen)

—

—

—

—

—

203.6

211.5

153.8

135.9

(6.6)

Extraordinary Income (Billions of Yen)

—

—

—

—

—

—

—

—

—

—

Extraordinary Loss (Billions of Yen)

—

—

—

—

—

30.9

24.1

—

10.7

—

Net Income (Billions of Yen)

—

—

—

—

—

115.0

130.0

108.9

85.8

17.6

Net Income (Loss) per Share (Yen)

—

—

—

—

—

128.83145.55122.02

96.14

19.81

2,823.7
2,212.2

2,686.9
2,089.3

2,400.9
1,827.1

2,293.0
1,613.7

3,280.6
2,344.6

—

—

—

—

—

—

—

—

—

—

Grant under the Act on Purchase ofRenewable Energy Sourced Electricity

162.5

177.9

149.4

—

—

—

—

—

—

—

Other

449.0

419.6

424.3

679.3

936.0

Total Ordinary Revenues (Billions of Yen)
Light and Power Revenue

30,904

34,83234,01432,32680,15578,15968,317

68,33180,661

Total

117,826 112,992 102,331 100,657

111,565

Thermal19,441

15,766

14,566

14,566

13,816

Hydropower

8,228

8,234

8,235

8,248

8,248

Nuclear

6,578

6,578

6,578

6,578

6,578

11

11

11

11

11

34,25930,59029,39029,40328,654

Nuclear

22

21

12

26

31

Thermal

56

54

57

45

52

Hydropower

11

12

11

12

16

Renewable Energies

4

4

4

4

ー

7
100

9
100

15
100

13
100

100

CO2 emissions of
the Group’s domestic
power generation
business (million t-CO2)

30.4

28.5

30.4

25.4

24.7

0.287

0.287

0.334

0.266

0.283

54.6

48.4

28.0

61

48.5

49.0

48.6

47.8

48.2

48.1

1,210

1,390

1,570

1,560

1,530

Electricity Generation
Capacity (MW)Total

2,561.9

2,364.7

2,179.5

3,300.7

—

—

—

—

207.4

103.8

99.8

97.1

—

—

—

—

—

Fuel Costs

538.2

456.9

393.4

520.1

862.8

—

—

—

—

—

Backend Expenses of Nuclear Power

89.8

83.5

43.7

79.8

68.6

—

—

—

—

—

Maintenance Costs

177.0

194.2

104.3

63.0

94.3

—

—

—

—

—

Taxes Other Than Income Taxes

144.4

139.2

44.8

46.9

55.1

—

—

—

—

—

Depreciation

244.4

187.6

92.7

108.3

118.2

—

—

—

—

—

Cost of Purchased Power

516.8

454.1

389.7

314.5

911.5

—

—

—

—

—

Interest Expense

26.5

22.8

20.8

18.6

21.6

—

—

—

—

—

Levy under the Act on Purchase ofRenewable Energy Sourced Electricity

294.2

289.5

263.5

—

—

—

—

—

—

—

Other

739.2

815.9

1,171.2

927.9

1,071.0

—

—

—

—

—

Total Assets (Billions of Yen)

—

—

—

—

—

Net Assets (Billions of Yen)

—

—

—

—

—

7,257.3
1,532.9

7,612.7
1,641.7

8,075.7
1,725.5

8,656.4
1,705.5

8,774.4
1,839.7

Interest-bearing Debt (Billions of Yen)

—

—

—

—

—

3,853.4

4,096.6

4,471.6

4,838.3

5,009.4

CO2 emission factor of
the Group’s domestic
power generation
business (kg-CO2/kWh)

Equity Ratio (%)

—

—

—

—

—

20.9

21.0

20.9

19.2

20.4

—

—

—

—

Nuclear Capacity Factor

Capital Investments (Billions of Yen)

—

485.2

561.9

655.8

522.8

465.8

Return on Equity (ROE) (%)

—

—

—

—

—

Return on Assets (ROA) (%)

—

—

—

—

—

7.8
3.3

Operating Cash Flows (Billions of Yen)

—

—

—

—

—

449.7

463.4

369.2

410.3

128.0

Investment Cash Flows (Billions of Yen)

—

—

—

—

—

(537.8)(577.3)(660.7)(532.6)(417.8)

Free Cash Flows (Billions of Yen)

—

—

—

—

—

(881)

(113.9)(291.5)(122.3)(289.8)PBR (Times)

—

—

—

—

—

0.96

0.67

0.64

0.62

0.64

PER (Times)

—

—

—

—

—

12.67

8.27

9.82

11.95

65.17

Amount of Dividend (Billions of Yen)

—

—

—

—

—

44.6

44.6

44.6

44.6

44.6

—

1.0
0.2

2023

37,671

216.5

5.1
1.9

2022

Commercial andIndustrial

Residential

2,693.2

6.6
2.2

2021

(Million kWh)

Renewable Energies

8.3
3.2

2020

Electricity Sales Volume

Personnel Expenses

Total Ordinary Expenses (Billions of Yen)

2019

Power Sources (%)(Supply and demand record by
power source)

Other
Total

(%)

Thermal Efficiency ofThermal Power Plants(Lower heating value)ー(%)

Gas Sales Volumes(LNG conversion[gas and LNG total])(Thousand Tonnes)

Note: Figures for FY 2020 and later represent those after the spin-off of the transmission and distribution business.
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Financial Statements
Major Human Capital Indicators
Please note that the figures represent those for the Kansai Electric Power Co., Inc. and Kansai Transmission and Distribution, Inc. unless otherwise specified in the Remarks column.
Indicators

Targets

FY 2020

FY 2021

FY 2022

Remarks

FY 2030: 1% or more

0.1%

0.3%

0.6%

FY 2030: 20% or more

Rate of male employee childrearing leave
utilization*1

－
98%

11%
117%

11%
124%

Figures for major Kansai Electric Power Group companies*2

Same level as that of female employees
Same level as that of female employees

－

86%

98%

Figures for major Kansai Electric Power Group companies*2

Average number of childrearing leave days
taken by male employees*1

One month or more in FY 2025

8.3 days

10.4 days

14.5 days

－

100%

100%

100%

－

－
95.5%

96%
96.4%

100%
99.4%

Figures for major Kansai Electric Power Group companies*2

－
2.6%

85.2%
2.6%

91.1%
2.5%

Figures for major Kansai Electric Power Group companies*2

－

2.4%

2.4%

Figures for major Kansai Electric Power Group companies*2

136/2.6%

151/2.9%

166/3.2%

Increase the ratio of female managers
to 10% or more in FY 2030.

726/6.2%

868/7.1%

953/8.0% Power Group companies*2 for FY 2021, FY 2022

Increase the ratio of female senior
managers in FY 2030 to more than
threefold that of FY 2018 (to 4.8%)

52/2.1%59/2.4%64/2.7%

Increase the ratio of female senior
managers to 5% or more in FY 2030.

118/2.2%

114/2.0%120/2.2%－

87/19%

84/20%

89/22%

30% or more for each year

236/26%180/23%

218/27%

40% or more for each year

53/47%

49/51%

46/49%

10% or more for each year

34/10%

35/11%

43/14%

Ratio of mid-career hires in managerial
positions*1

Rate of female employee childrearing leave
utilization*1
Rate of paid leave utilization*1
Employment rate of persons withdisabilities

Number and ratio of female managers*1

Number and ratio of female senior
managers*1

Number and ratio of female hires*1,3,4

Number and ratio of female hires(office jobs)*1,3,4
Number and ratio of female hires(technical jobs)*1,3,4

90% or more for each year－
Achieve legal employment rate every year.
Achieve legal employment rate every year.
Increase the ratio of female managers
in FY 2030 to more than threefold
that of FY 2018 (to 6.3%)

Consolidated figures for FY 2020; figures of major Kansai Electric

Number of group training participants (in total)－

29,41433,302

38,685Time spent on training per employee－

36.9 hours

41.2 hours

43.5 hours

Total training cost－

1,540 million yen

1,462 million yen

1,479 million yen

Training cost per employee－

85,800 yen

83,000 yen

85,400 yen

Consolidated figures for FY 2020; figures of major Kansai ElectricPower Group companies*2 for FY 2021, FY 2022

Consolidated figures for FY 2020; figures of major Kansai ElectricPower Group companies*2 for FY 2021, FY 2022

*1 Excludes transportation staff and medical staff. *2 The Kansai Electric Power Co., Inc., Kansai Transmission and Distribution, Inc., and major group companies *3 Regular employees hired in each fiscal year are the subject of the calculation.
*4 Results from the year in which recruitment activities were conducted
Kansai Electric Power Group Integrated Report 2023

125

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Corporate Information
Company outline / Stock Information
Company name:Head office:Date of establishment:
Paid-in capital:
Operating revenues:
Total assets:
Number of employees*:
Electricity sales:
Main business:

Group companies

As of March 31, 2023

The Kansai Electric Power Company,
Incorporated
3-6-16 Nakanoshima, Kita-ku, Osaka 530-8270,
Japan
May 1, 1951
¥489.3 billion¥3,951.8 billion (consolidated),¥3,158.8 billion (non-consolidated)¥8,774.4 billion (consolidated),¥7,474.8 billion (non-consolidated)
8,474 (31,628 as the whole Group)
111.6 billion kWh
Electric power, gas supply, heat supply,
telecommunications, etc.

Number of commonshares issued:
Number of shareholders:
Stock exchange listings:
Transfer Agent:

938,733 thousand
291,158
Tokyo Stock Exchange
Mitsubishi UFJ Trust andBanking Corporation
4-5, Marunouchi 1-Chome,
Chiyoda-ku, Tokyo 100-8212,
Japan* Number of working employees excluding employees on loan and on leave of absence.

Major shareholders

Distribution of shares

As of March 31, 2023

Name of Shareholders

Ratio of the Numberof Shares Held to the
Total Number of
Shares Issued (%)

Number of
Shares Held(thousands)

The Master Trust Bank of Japan, Ltd. (Trust Account)

13.08

116,823

Osaka City

7.64

68,287

Custody Bank of Japan, Ltd. (Trust Account)

5.89

52,645

Nippon Life Insurance Company

3.07

27,462

Kobe City

3.06

27,351

Kansai Electric Power Employee Stockholder Program

2.35

21,008Osaka Metro Co., Ltd.

1.73

15,461

Mizuho Bank, Ltd.

1.45

12,978SSBTC CLIENT OMNIBUS ACCOUNT(Standing proxy: The Hongkong and Shanghai
Banking Corporation Limited, Tokyo Branch)

1.45

12,974

STATE STREET BANK WEST CLIENT—TREATY 505234(Standing proxy: Mizuho Bank, Ltd.)

1.34

11,947

Note: The ratio of the number of shares held to the total number of shares issued is calculated by subtracting
treasury stock (45,459,049 shares). Treasury stock is excluded from the above table.

Kansai Electric Power Group Integrated Report 2023

Treasury Stock

4.8%

Domestic
Companies, etc.

5.7%

Governments andLocal Public
Organizations

As of March 31, 2023

Financial Instruments
Business Operators

2.8%
Financial
Institutions
30.3%

11.3%

ForeignCompanies, etc.

19.9%

Individuals
and Others

25.2%(Consolidated subsidiaries and affiliates accounted for by the equity method)
As of May 31, 2023
Consolidated subsidiaries
90 companies

Transmission and distribution business3 companies

Energy business 48 companies

Kansai Transmission and Distribution, Inc.
Kanden Engineering Corp.
The Kanden Services Co., Inc.

Kanden Energy Solution Co., Inc.
Fukui City Gas Co., Ltd.
ECHIZEN ENELINE CO., INC.
NIHON NETWORK SUPPORT CO., LTD.
Kanden Plant Corp.
Aioi Bioenergy Corporation
NEWJEC INC.
Institute of Nuclear Safety System, Inc.
Next Power Company
KANSO TECHNOS CO., LTD.
Kanden E House Co., Ltd.
Kanden Power-Tech Corp.
SAKAI LNG Corp.
Nuclear Engineering, Ltd.
The Kurobe Gorge Railway Co., Ltd.
Dshift Inc.
KANDEN GAS SUPPORT CO., INC.
Osaka Bioenergy Co., Ltd.
E-Flow LLC
KE Fuel International Co., Ltd.
KPIC Netherlands B.V.
LNG SAKURA Shipping Corporation
LNG FUKUROKUJU Shipping Corporation
LNG JUROJIN Shipping Corporation
Biopower Kanda Godo Kaisha
Oita Usuki Wind-power Generation Godo Kaisha
Wakayama Taiyoko Godo Kaisha
KPRE Godo Kaisha
Karatsu Offshore Wind Godo Kaisha
Kansai Electric Power Holdings Australia Pty Ltd
KPIC USA, LLC
Kansai Electric Power Australia Pty Ltd
Kansai Sojitz Enrichment Investing S.A.S.
PT. Kansai Electric Power Indonesia
Kansai Energy Solutions (Thailand) Co., Ltd.
KANSAI ENERGY SOLUTIONS (VIETNAM) CO., LTD.
KE Fuel Trading Singapore Pte. Ltd.
11 other companies in addition to the above listed

Information and telecommunications
8 companies
OPTAGE Inc.
Kanden Systems Inc.
K4 Digital Co., Ltd.
5 other companies in addition to the above listed

Life / Business solution business
31 companies
Kanden Realty & Development Co., Ltd.
KANSAI Medical Net Co., Inc.
Kanden L-Heart Co., Inc.
Kanden Facilities Co., Ltd.
Kansai Electron Beam Co., Ltd.
Pont des Tech Inc.
Gekidan iino Godo Kaisha
Kanden CS Forum Inc.
Kanden Office Work Co., Inc.
The Kanden L & A Co., Ltd.
KANDEN AMENIX Corp.
K4 Ventures GK
Kaiko Yukinoya Godo Kaisha
18 other companies in addition to the above listed

Affiliates accounted for by theequity method
9 companies
Energy businessJAPAN NUCLEAR FUEL LIMITEDKINDEN CORPORATIONENEGATE Co., Ltd.
San Roque Power Corporation
5 other companies in addition to the above listed126

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Corporate Information
Organization chart

As of July 1, 2023
Customer Solution Division
Operation and Trading Division
Nuclear Power Division
Renewable Energy Division
Thermal Power Division
Gas Business DivisionInternational Business and Cooperation Division
Kansai Transmission and Distribution, Inc.

Chairman
Board of Directors

Kanden Energy Solution Co., Inc.
OPTAGE Inc.

Core Companies

Kanden Realty & Development Co., Ltd.
Branch Office

President
Executive Vice President
Executive Meeting

Office of Organizational Climate Reform
Compliance Promotion Headquarters
Office of Corporate Planning
Office of Energy and Environmental Planning

Nominating Committee

Hydrogen Business Strategy Division

Compensation Committee

Innovation Development Division

Audit Committee

Sourcing and Procurement Division

Office of Audit Committee
Compliance Committee

Office of IT Strategy
Office of Nuclear Fuel Cycle
Office of Corporate Communications
Office of Human Resources and Safety Management
Office of Accounting and Finance
Office of Plant Siting
Office of Board Directors
Office of General Administration
Office of Civil Engineering and Architecture
Office of HospitalInternal Auditing
Hospital
Management OfficeKansai Electric Power Group Integrated Report 2023

127

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