KYUDEN GROUP INTEGRATED REPORT 2023

Table ofContents

1 Overview of the Kyuden Group

2 Value Creation Story

3 Strategy and Performance

4 Creating Value through Business

5 A Foundation for Creating Value

6 Data Section

131

SASB INDEXSASB INDEXThe table below summarizes the Kyuden Group’s results based on the SASB Electric Utilities & Power Generators Standard provided by the International Sustainability Standards Board (ISSB), an arm of theInternational Financial Reporting Standards (IFRS) Foundation. The SASB Standards are primarily designed for U.S. companies and markets and therefore include items that are not applicable to the Kyuden Group, but
we strive to disclose as much information as possible according to the Standards.
Disclosure Topics

Accounting Metrics

Category

Unit

CodeInformation Disclosed

Environment(1) Scope 1 emissions(2) Percentage of Scope
1 emissions underemissions-limiting
regulations(3) Percentage of Scope
1 emissions underemissions-reporting
regulations

Greenhouse gas (GHG)
emissions associated withpower deliveries

Quantitative

Quantitative

t-CO2
%

t-CO2

IF-EU-110a.1

IF-EU-110a.2

Greenhouse Gas
Emissions & Energy
Resource Planning
Discussion of long-term andshort-term strategy or plan to
manage Scope 1 emissions,emissions reduction
targets, and an analysis ofperformance against thosetargets(1) Number of customers
served in markets subject
to renewable portfolio
standards (RPS) and(2) percentage fulfillment of
RPS target by market

Discussion
and Analysis

̶Quantitative

Number%

IF-EU-110a.3

IF-EU-110a.4(1) 23,690,000 [t-CO2](2) 0 [%] (no regulated markets in Japan)(3) 100 [%]Note 1: Scope 1 emissions include direct emissions of greenhouse gases as defined in the Act on Promotion of Global Warming Countermeasures (CO2, N2O, SF6and HFC)

29,200,000 [t-CO2] (33,200,000 [t-CO2])
Note 2: Provisional value
Note 3: Value in parentheses represents CO2 emissions generated by Kyushu Electric Power after adjustments were made in accordance with the FIT system forrenewable energy per the Act on Promotion of Global Warming Countermeasures.

In order to make a significant contribution to the realization of a carbon-neutral society as one of Japan’s industry leaders in low-carbon and carbon-free efforts,
the Kyuden Group has clarified its goals for 2050, set its management objectives (environmental objectives) for 2030 by backcasting, and formulated an Action Plan
containing specific strategies for achieving these targets.
〇 Reduction plan for emissions
・ Amount of renewable energy developed: 5,000 MW (2030)
・ Maximum use of nuclear power with safety as a top priority
・ Lowering the carbon intensity of thermal power・ Conversion of all company cars to 100% EVs*1 (2030)*1: Excl. special purpose vehicles〇 Emissions reduction targets
2050 goals:
・ We will reduce greenhouse gas (GHG) emissions from our business activities across the entire supply chain to net zero・W e will contribute to the reduction of GHG emissions in society by promoting a shift to electricity-based energy consumption to the maximum extent possible,
providing a stable supply of environmentally-friendly energy, etc. Through these efforts, the Kyuden Group will achieve “carbon negativity” as early as possible before 2050
2030 management (environmental) targets:・ We will reduce supply chain GHG emissions*2 by 60% (compared to FY2013 levels); andby 65% for our domestic business (compared to FY2013 levels).
*2: Total for Scopes 1, 2, and 3
・ We will contribute to the electrification of Kyushu (Household: 70%; Commercial: 60%)
〇 Analysis of achievement level
Supply chain GHG emissions for FY2022 was 45.10 million tons-CO2, about a 26% reduction from FY2013 levels.
This result is due to our active development and introduction of renewable energy and stable nuclear power operations.
The RPS Act, which defined RPS regulations in Japan, was abolished in 2012 and replaced with the FIT system
Note 4: We purchase electricity generated by renewable energy systems at a fixed priceNote 5: The Kyushu region makes up around 10% of Japan’s electric power demand, yet the introduction of renewable energy power generation facilities throughthe FIT system is approximately 20% of the national total.

Note: Quantitative data without a time point are actual results for FY2022.

KYUDEN GROUP INTEGRATED REPORT 2023

Table ofContents

1 Overview of the Kyuden Group

2 Value Creation Story

3 Strategy and Performance

4 Creating Value through Business

5 A Foundation for Creating Value

6 Data Section
SASB INDEX

Disclosure Topics

Accounting MetricsCategory

Unit

CodeInformation D isclosed

Environment

Air Quality

Air emissions of the following
pollutants: (1) NOx (excluding
N2O), (2) SOx, percentage
of each in or near densely
populated areas

IF-EU-120a.1(1) 6,769 [t], 100 [%](2) 4,618 [t], 100 [%]Note 1: Figures are based on results excluding island-based combustion power plants

Quantitative

1000 m3%

IF-EU-140a.1(1) 6,511 [1,000 m3], 0 [%]Note 2: Main applications: Water for thermal power generation and nuclear power generation (fresh water)
Note 3: The above does not include hydroelectric power water (fresh water) or indirect cooling water (seawater) for thermal power generation(2) 2,748 [1,000 m3], 0 [%]Quantitative

NumberIF-EU-140a.2

0Quantitativet%(1) Total water withdrawn,(2) total water consumed,
percentage of each in regionswith High or Extremely HighBaseline Water Stress
Number of incidents ofnoncompliance associatedwith water quantity and/orquality permits, standards,
and regulations

Discussionand Analysis

̶IF-EU-140a.3

Kyushu EP and Kyushu T&D manages the following risks regarding the use of water resources, which are essential for the power generation business.
To identify water risks, WRI Aqueduct 3.0 tools were used to verify water stress (current and future) in areas where Kyushu EP and Kyushu T&D facilities arelocated. The results are as follows:・ According to the Baseline Water Stress tool, maximum water stress is low-medium in the Kyushu region where Kyushu EP and Kyushu T&D has installed
power plants that use fresh water or seawater, and water-related risks such as droughts are assumed to occur less frequently there.
Water-related risks are low. In the hydroelectric power business, we use hydroelectric power plant dams and diversion weirs to release the water needed
to maintain our rivers. In addition, we abide by the set amounts of water that we have permission to take from rivers to produce electricity based on laws
and regulations. Where river levels are predicted to rise due to heavy rainfall, we release water from our dams in advance based on water governanceagreements with the national government or other authorities. We also cooperate to the fullest extent possible in local disaster prevention.
In our thermal power generation business, water for power generation is stored in a water storage tank once it is received, so in the event of drought orflooding, there is no immediate output control or suspension of power generation. However, if water is cut off or the amount of water received is limited,
we will work to maintain our thermal power operations as much as possible by considering water-saving measures or ways to receive water. Further, as
our thermal power generation business and nuclear power generation business use seawater as indirect cooling water for power generation facilities, wemonitor the temperature difference between intake water and discharged water.
In addition, based on environmental conservation agreements we have entered into, we report on the status of the marine areas around our power plants (waterintake and discharge, etc.) to local governments and officials from fishery cooperatives, and exchange opinions with them.

Quantitativet%

IF-EU-150a.1

851,000 [t], 98.0 [%]Note 4: Amount of coal ash (fly ash and bottom ash)

Quantitative

NumberIF-EU-150a.2

Recycled approximately 98% of coal ash produced at thermal power plants

Water Management

Description of water
management risks anddiscussion of strategies andpractices to mitigate thoserisks

Amount of coal combustion
residuals (CCR) generated,
percentage recycled

Coal Ash Management

Total number of coal
combustion residual (CCR)
impoundments, broken
down by hazard potential
classification and structural
integrity assessment by theU.S. Environmental Protection
AgencyNote: Quantitative data without a time point are actual results for FY2022.

132

KYUDEN GROUP INTEGRATED REPORT 2023

Table ofContents

1 Overview of the Kyuden Group

2 Value Creation Story

3 Strategy and Performance

4 Creating Value through Business

5 A Foundation for Creating Value

6 Data Section
SASB INDEX

Disclosure Topics

Accounting Metrics

Category

Unit

Code

Information Disclosed

Social Capital

Energy Affordability

Average retail electricrate for (1) residential, (2)commercial, and (3) industrial
customers (per kWh)

Quantitative

Yen/kWh

IF-EU-240a.1(1) 23.65 [Yen/kWh](2) (3) 18.10 [Yen/kWh]Note 1: (1) is the average cost of lighting. (2) and (3) are the average cost of electric power.

Typical monthly electric bill
for residential customers for(1) 500 kWh and (2) 1,000
kWh of electricity delivered
per month

Quantitative

Yen

IF-EU-240a.2(1) 14,151 [Yen](2) 29,480 [Yen](1) Number of residential
customer electric
disconnections for
nonpayment and(2) percentage reconnected
within 30 days

Quantitative

Number%

IF-EU-240a.3(1) 153,073
Note 2: Service stops resulting from non-payment of electricity fees based on the Specified Retail Supply Agreement(2) 81 [%]N ote 3: Percentage of resumptions of service within 7 days of service stop (unable to provide percentage for resumptions within 30 days)

Discussion of impact ofexternal factors on customer
affordability of electricity,
including the economic
conditions of the service
territory

Discussionand Analysis

IF-EU-240a.4

The Electricity Business Act in Japan stipulates that general transmission and distribution operators shall not refuse wheeling service in their
supply areas without justifiable grounds. When we accept an application to supply electricity in areas handled by Kyushu T&D, in principle, wesupply to the designated area. We believe that there is no difference in the opportunities for consumers to obtain low-cost energy. With that,
we recognize that the factors affecting electricity prices include levies for renewable energy generation based on the national system and fuelcost adjustments due to price fluctuations of thermal fuel that affect electricity prices.

̶Human Capital

Workforce Health &Safety(1) Total recordable incident
rate (TRIR) (no. ofaccidents per 200,000
working hours)(2) fatality rate, and(3) near miss frequency rate(NMFR) (no. of accidents
per 200,000 workinghours)

Quantitative%

IF-EU-320a.1(1) Employees: 0.01, contractors: outside management purview(2) Employees: 0, contractors: 1
Note 4: We report the number of deaths as the SASB standards do not provide a specific calculation formula for the percentage of deaths.
(3) Outside management purviewN ote 5: This information cannot be disclosed because it was not obtained using the measurement method recommended by the SASB standards

Business Model & Innovation

End-Use Efficiency &DemandPercentage of electricutility revenues from ratestructures that
(1) are decoupled and(2) contain a lost revenue
adjustment mechanism(LRAM)

Quantitative%

IF-FU-420a.1

Decoupling and LRAM systems have not been introduced in Japan
Note 6: Sales increases will come from promoting electrification and offering various services that meet customer needs.

Percentage of electricload served by smart gridtechnology (MWh)Quantitative%

IF-EU-420a.2

Penetration of smart meters: 90 [%]Customer electricity savings
from efficiency measures, bymarket

Quantitative

MWhIF-EU-420a.3

We disclose the following quantitative data in lieu of electricity savings.
○ Number of electrification and energy-saving solution proposals: Approx. 4,800 (for the 5 years from FY2018 to FY2022)
Note 7: Kyushu Electric Power provides a variety of solutions to customers for electrification and energy conservation to achieve carbon neutrality by 2050
(URL: https://www.kyuden.co.jp/service_index.html)
Note: Quantitative data without a time point are actual results for FY2022.

133

KYUDEN GROUP INTEGRATED REPORT 2023

Table ofContents

1 Overview of the Kyuden Group

2 Value Creation Story3 Strategy and Performance

4 Creating Value through Business

5 A Foundation for Creating Value

6 Data Section
SASB INDEX

Disclosure Topics

Accounting Metrics

Category

Unit

CodeInformation Disclosed

Leadership & Governance

Nuclear Safety& Emergency
Management

Grid Resiliency

Total number of nuclear
power units, broken down
by U.S. Nuclear Regulatory
Commission (NRC) Action
Matrix Column

Quantitative

NumberIF-EU-540a.1

6 units (breakdown: 4 units at the Genkai Nuclear Power Plant, 2 units at the Sendai Nuclear Power Plant)
Note 1: Genkai Nuclear Power Plant Units 1 and 2 are currently being decommissioned
Note 2: Sendai Nuclear Power Plant Units 1 and 2 passed inspection under the Nuclear Regulation Authority new regulatory standards and restarted in2015
Genkai Nuclear Power Plant Units 3 and 4 passed inspection under the Nuclear Regulation Authority new regulatory standards and restarted in 2018

Description of efforts tomanage nuclear safety andemergency preparedness

Discussionand Analysis

̶IF-EU-540a.2

Kyushu Electric Power is working to maintain and improve the safety and reliability of nuclear power plants by accurately implementing safety activities basedon the quality management system for nuclear safety headed by the President and steadily making continuous improvements, including risk management toprevent abnormalities.
In addition, we are continuously working to foster and maintain a corporate culture in which each employee can raise their awareness of the various risks ofnuclear power, ask what can be done to improve safety, and demonstrate leadership to improve performance. We have also established the Nuclear Safetyand Reliability Improvement Committee comprised of outside experts as a mechanism to receive opinions on our efforts to improve the safety and reliability ofnuclear power from a third-party perspective, providing us with objective and specialist assessments and recommendations.

Number of incidents ofnoncompliance with physicaland/or cybersecurity standards
or regulations

Quantitative

NumberIF-EU-550a.1

Not disclosed
Note 3: Not disclosed in light of the risks associated with disclosure(1) System Average
Interruption Duration Index(SAIDI),(2) System Average
Interruption Frequency
Index (SAIFI), and(3) Customer Average
Interruption Duration Index(CAIDI)

Quantitative

MinutesOutages
Minutes/Outage

IF-EU-550a.2(1) 115 [mins.] (excl. disasters such as typhoons: 3 mins.)(2) 0.15 [outages] (excl. disasters such as typhoons: 0.04 outages)(3) 782 [mins./outage] (excl. disasters such as typhoons: 56 mins./outage)

Note: Inclusive of major event days

Note: Quantitative data without a time point are actual results for FY2022.

Activity Metrics
Activity MetricUnit

CodeInformation Disclosed

Number of: (1) residential, (2) commercial, and(3) industrial customers served

NumberIF-EU-000.A(1) 7,120,000(2) (3) 720,000
Note 2: (1) is the number for lighting. (2) and (3) are the number for electric power Note 3: Non-consolidated results for Kyushu Electric Power

Total electricity delivered to:(1) residential, (2) commercial, (3) industrial, (4)all other retail customers, and (5) wholesalecustomers

MWhIF-EU-000.B

The total for (1) to (4) is 76,546,000 [MWh] (retail electric power sales)(5) 19,420,000 [MWh] (wholesale electric power sales)

Length of transmission and distribution lines

kmIF-EU-000.C・ Transmission lines: Overhead 17,013 [km], underground 1,420 [km] (line extensions)・ Distribution lines: Overhead 142,009 [km], underground 2,189 [km] (span)・ Total electricity generated
・ Percentage by major energy source
・ Percentage in regulated markets

MWh%

IF-EU-000.D

・ Total electricity generated: 60,192,771 [MWh]・ Percentage by major energy source: Hydroelectric power: 7.30 [%], Coal: 23.18 [%], LNG: 23.76 [%], Thermal power (other): 0 [%], Nuclear: 33.35 [%],Geothermal: 1.87 [%], Biomass: 0.01 [%]・ Percentage in regulated markets: Not applicable (as no regulated markets in Japan)

Total wholesale electricity purchased

MWhIF-EU-000.E

41,779,000 [MWh] (Total for electricity supplied by or purchased from other companies)
Note: Quantitative data without a time point are actual results for FY2022.

134