Table ofContents

KYUDEN GROUP INTEGRATED REPORT 2023

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

59

6 Data Section

Implementing ContinuousImprovements in Energy Services[Implementing Continuous Improvements in Energy Services]

Stable Supply of Energy
In our electricity businesses, we have made it our fundamental mission to continuously deliverenvironmentally friendly energy at a low cost and in a reliable manner with safety as our top priority,
which we see as our greatest social responsibility. To that end, we will continue to maintain the high levelof supply dependability we have achieved to date by accurately responding to trends in electric power
demand, efficiently forming our facilities, taking steps to reduce power outages, upgrading the operationand management of our facilities, and working to restore power as soon as possible after outages caused
by major disasters.

■ Initiatives to Improve the Safety and Reliability of Nuclear Power
Kyushu EP has been ahead of its competitors in complying with the government’s new regulatory standardsfollowing the accident at the Fukushima Daiichi Nuclear Power Plant, and has restarted its nuclear reactors.
Moving forward, we will continue our efforts to continuously improve the safety and reliability of our nuclear
power operations, not only within the regulatory framework, but also by doing due diligence in collecting thelatest technical insights and data and applying it to operations.
Reactor containment vessel

Installation of Specific Safety Facilities
Power
generator

Reactor depressurizationequipment

To tank

Emergency
control room
Water tanks

Control rods

Water injection
pump

Reactordepressurizationequipment(nitrogen cylinders,etc.)

Steam generator

Under the new regulatory standards set by thegovernment, it is mandatory to install Specific
Safety Facilities (SSFs)* that are capable ofhandling terrorist and other threats.
Sendai Nuclear Power Plant was the firstin Japan to pass government inspection under
the new regulatory standards, and it began
operation in 2020. In addition, installation works
were also completed for Genkai Nuclear PowerPlant, which is currently in operation (Unit 3:December 2022, Unit 4: February 2023).

Efforts to prevent nuclear accidents
We are working to improve our response capabilities by developing emergency
systems and conducting repeated drills in preparation of a nuclear accident sothat we will be able to promptly respond to any type of situation at our nuclear
power plants.
In addition, we are stepping up our cooperation with related organizations
and businesses by participating in nuclear power disaster drills offered by thenational and local governments, as well as joint drills carried out by nuclear
power operators.

In-house nuclear emergency drill simulatinga major accident at Genkai Nuclear Power
Plant (February 2023)

Environmental radiation control around nuclear power plants
We continuously monitor and measure radiation levels in the vicinity of nuclear power plants, and disclose thatdata in real time on the website of Kyushu EP. In addition, we regularly measure the radioactivity containedin environmental samples such as soil, seawater, crops, and marine products, and to date, there has been noidentification of any environmental impact due to the operation of our nuclear power plants.
The radiation dose received by people in the vicinity of the nuclear power plant is less than 0.001 millisieverts
per year, which is far below the legal dose limit of 1 millisievert per year and the target value of 0.05 millisieverts
per year set by the former Japanese Nuclear Safety Commission.
■Radiation levels in daily life (unit: millisieverts)
2.4‒12.9Filter vent100

CT scan (one scan)

Specific Safety Facilities* A facility with functions to prevent damage to the reactor containment vessel in theevent that the reactor’s core is severely damaged due to the loss of the reactor’scooling ability caused by the deliberate collision of a large aircraft with the reactor’s
auxiliary building or any other act of terrorism

Air travel between
Tokyo and New York(round trip)

Less than 0.001
Actual amounts released
from nuclear
power plants(annual)

0.1
0.01

0.001

50

(10.01

In order to operate a nuclear power plant beyond the 40-year limit, an application for extension must besubmitted to the Nuclear Regulation Authority and permission must be granted.
We submitted an application for extension for Sendai Nuclear Power Plant Units 1 & 2 in October 2022, andwill take measures as appropriate toward getting permission.

10

Amount of radiation exempted frombeing regarded as radioactive
material for safety reasons
Clearance level (annual)Application for extension of the operation period of Sendai Nuclear Power Plant Units 1 & 2

100 Whole body irradiation

0.08‒0.11

Reactor vessel

0.06

No clinical symptoms have been identified
at doses lower than thisMaximum allowable for workers
at power stations (annual)Not to exceed 100 millisieverts per 5 years
and 50 millisieverts per year)

2.1 (Japan average)Chest X-ray
done in group0.05 examination (one X-ray)
Dose targets in the vicinityof nuclear power plants (annual)

Natural radiation per person(annual)

0.3
0.33
From the air (breathing) 0.48
From food
0.99
From space

From the Earth

Source: Prepared based on “Radiation Q&A,” The Federation of Electric Power Companies of Japan

Enhancing communication with local residents regarding nuclear power■Period of extension
Start date of extension

End date of extension

Extension period

Unit 1

July 4, 2024

July 3, 2044

20 years

Unit 2

November 28, 2025

November 27, 2045

20 years

In order to make local residents feel assured about nuclear power generation,
we make sure to disseminate easy-to-understand information about ourinitiatives to improve the safety and reliability of our power plants. We arecommitted to making use of visits, plant tours and other opportunities toengage in interactive communication activities Company-wide.

Dialogue with local residents

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

60

Implementing Continuous
Improvements in Energy Services■ Maintaining and Improving the Reliability of Supply
In order to deliver stable, high quality electricity to our customers that they can use with peace of mind, Kyushu
T&D is constantly working to patrol, inspect, and repair facilities, operate them safely and efficiently, and develop
and improve construction methods.

Preventing power outages

Planned updates to aging facilities
In preparation for the aging of facilities built to meet an increase in electric power demand following economicgrowth, we are making progress in inspections and repairs focused on aging facilities and planned updates tofacilities in order to stably maintain facility functions over the long term. We are also working to improve theaccuracy of equipment life estimates through analysis of equipment deterioration data, etc., which is reflected inplans for the renewal of older equipment.

■ Promotion of Safe and Disaster-resistant Urban Development
Prevention of public electric shock incidents
Kyushu T&D has been regularly carrying out PR activities and requests for cooperation to civil engineering,
construction, and crane companies, elementary and junior high schools and boards of education, local
governments, police and fire stations, and other organizations in order to prevent incidences of electric shock
among the general public.
In addition, we are strengthening■ Number of public electric shock incidents (number of deaths andour safety measures by implementinghospitalizations)equipment-related measures to prevent
FY
2018
2019
2020
2021
2022
public electric shock incidents that areNo. ofcaused by contact with power equipment.
11000incidents

No. of power outages (times)

Duration of power outages (mins.)

In order to prevent power outages along our transmission ■Annual duration and frequency of power outages per
customer household
and distribution lines, we are working to identify points of561 (mins.)
hazard ahead of time by patrolling facilities, in addition toDuration of power outages (mins.)
3.5
600 3.13 (times)
No. of power outages (times)
implementing countermeasures and preventing birds and
3.0500
other animals from building nests. We also continuously
2.54002.0
survey the distance between trees and our power lines
Impact of typhoons,
300
earthquakes, etc.
1.5
and fell them as necessary with the understanding and200
1.0
cooperation of all parties concerned to prevent power
100
115 (mins.) 0.5
outages and equipment damage caused by trees.
0.15 (times)
00.0
Other efforts include reinforcing our facilities to reduce
1970
1980
1990
2018
2019
2020
2021 2022(FY)
power outages caused by lightning, typhoons, and othernatural disasters, and maintaining them meticulously
based on their condition.

Disaster emergency information transmission system that utilizesutility poles
In order to address the issue of the current emergency broadcast system
not fully reaching all areas, Kyushu T&D is working on a disaster emergency
information transmission system that uses speakers attached to utility
poles to deliver disaster preparedness information with clarity to residents.
Pilot testing of the system conducted from January 2020 in Toho Village,
Asakuragun, Fukuoka Prefecture obtained positive results. As such, webegan full-scale introduction of the system in this same village in March
2022. We are now actively visiting many municipalities in Kyushu topropose introduction of the system.

Speaker

Secondarystation
System installed on a utility pole

■ Improvement of Disaster Response Capabilities
Strengthening the disaster response system
We have been strengthening cooperation with relevant authorities to rapidly
restore power during disasters. We have entered into cooperative agreementswith not only the Ground and Maritime Self-Defense Forces, but also the 7th
and 10th Regional Coast Guard Headquarters and all local governments in theKyushu area (7 prefectures, 233 municipalities) in the event of a disaster.
Based on these cooperative agreements, we strive to maintain a joint
cooperation system, carrying out drills and other activities in preparation forlarge-scale disasters with related organizations.
In addition, we are also working to strengthen cooperation with othercompanies, including entering into agreements for joint cooperation with
West Nippon Expressway Company Limited, Lawson, Inc., and AEON Co., Ltd.
with the goals of facilitating the passage of emergency and other vehicles,
diversifying the means of procuring relief supplies, and securing sites that canserve as a base for recovery efforts.

Agreement finalization ceremony with the7th Regional Coast Guard

Personnel and equipment loading training with
the Japan Coast Guard Headquarters

Responding to large-scale disasters
Kyushu EP and Kyushu T&D have developed a joint disaster response system and will work together with partnercompanies and government agencies to quickly disseminate information and resolve power outages as soon as
possible in the event of a typhoon, torrential rain, or other large-scale disaster.
In September 2022, Typhoon Nanmadol caused power outages in up to 350,000 households, mainly insouthern Kyushu. We mobilized up to 5,900 employees, including those from northern Kyushu, which suffered
relatively little damage, to dispatch support to the south, and worked closely with local governments to restore
power as soon as possible.

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

61

Implementing Continuous
Improvements in Energy Services

Affordable EnergySolutions Based Around Energy Services

Kyushu EP is working to improve management efficiency by reducing fuel costs through diversifying fuel procurement methods and reducing equipment procurement costs, thereby aiming to lower power generation costs.

The Kyuden Group works as one to provide products and services that precisely address the diverse needs andconcerns of our customers, lead to more prosperous, comfortable lives for them, and generate economic activity.
We will keep working to enhance our services based on customer feedback so that customers continue totrust and choose us.

■Efforts to reduce fuel costs
InitiativeOverview

Expand procurement throughcompetitive quotations· Procure with more competitive quotes to reduce fuel prices, transportation costs, import agent fees, etc.

Diversify supply sources· E xpand the use of sub-bituminous coal and standard-grade coal, which are less expensive thanhigh-grade coal, and introduce high-ash coal, which is expected to be more economical·D iversify our supply sources by introducing South American and Central Asian coals that had
previously been shipped to Europe

Cooperate with other companies·R
 espond to fluctuating requirements flexibly in cooperation with other operators to optimize supply anddemand operations

Diversify pricing methods·R educe the risk of price fluctuations and fuel procurement costs by diversifying and optimizing our pricing
methods, including fixed-price and market-price-linked methods· Adopt LNG pricing methods that use new indicators to curb procurement price fluctuations and improve
economic efficiency

Pursue economic efficiency
based on market trends·R educe procurement costs through an appropriate combination of and negotiations on long-term, shortterm, and spot contracts based on market conditions

Strengthen participation in thefuel value chain· Acquire upstream equity interest (contributes to stable fuel procurement, flexibility, and enhanced
procurement capabilities by acquiring information from producers)· Reduce transportation costs by thoroughly managing and maximizing the use of our own vessels· Balance supply and demand internally with contracts for the use of LNG terminals overseas that canreceive and dispense LNG■Efforts to reduce equipment procurement costs
Measures

Overview

Make use of the competition
principle· E xpand and enhance competitive effect by improving motivation toward placing orders, including
introducing new suppliers, separating orders, and ranked allocation, etc.

Assess overall advantages· P ursue overall economic efficiency through a multifaceted assessment of factors other than initial costs,
such as running costs and other maintenance costs, efficiency, durability, and reliability, etc.

Contrive ordering methods· P ursue economies of scale by joint procurement with other companies and combining and ordering
multiple projects· Apply optimal ordering methods to balance stable procurement with reduced costs, etc.

Work with suppliers and makeuse of their knowledge
Revise specifications andtechniques· P roactively make use of supplier knowledge, including value engineering (VE) and technological proposals,etc.
·U nit cost reduction activities such as cooperating with suppliers to revise specifications and improving
work efficiency on-site, etc.
· E ase required specifications, improve efficiency by contriving better techniques, etc.

· In FY2022, we achieved a cost reduction of ¥20.8 billion through efforts to reduce equipment procurement costs.

■T he Kyuden Group’s Diverse Products and Services Helping Solve Local andSocial Issues

Starting from February 2019, the Kyuden Group has been marketing the Group’s various
products and services to local governments and corporations under the name “with Q.”
In 2021, we packaged together Group products and services related toelectrification, renewable energy, and energy conservation to offer customers basedaround the theme of decarbonization, which is of growing societal concern.
Along with offering products in the four categories of disaster prevention measures,countermeasures against extreme heat, information security, and switching to LEDs,
which are of high interest to local communities and society, we also provide a lineup ofrelated products that take a separate approach for each customer, including medical
institutions, offices, and manufacturing sites, proposing optimal solutions for eachindividual customer’s issues.

We provide optimal services
that help efforts toward

decarbonization.

■ Providing Rate Plans that Meet Customer Needs for Decarbonized Electricity(For households)
Kyushu EP offers the “Marugoto Saiene (100% renewable energy) Plan” for a fixed monthly fee of ¥500 to meetthe needs of households wanting to use electricity derived from renewable sources, and the “Let’s Grow Future
Forest Plan” through which a fixed monthly donation of ¥300 goes to environmental conservation activities
undertaken by the Kyuden Mirai Foundation.

100% Renewable Energy Plan
Electricity rateplan(main contract)

Electricity rateplan(optional contract)

Household Plan

100% Renewable
Energy Plane’s electrici
tyr hom
You renewable ene isrg y0%!
10(For corporate customers)
Based on the growing and diversifying renewableenergy needs of customers, as well as changes in theenvironment such as revisions to the non-fossil value
market, Kyushu EP offers three renewable energy andCO2-free plans for corporate customers to meet customer
needs with great care.

Let’s Grow Future Forest PlanYour support will help preserve Kyushu’s natural environment.

Monthlyelectricity bill+ ¥300
donation

Utilized for tree-planting, forest
growing, environmental education, andenvironmental conservation activities

Kyuden Mirai Foundation● Provides electricity from renewable energy

Renewable
Energy ECOKiwami

Renewable
Energy ECO Plussources (hydroelectric, geothermal, etc.)
and renewable energy value, as well as
further value by specifying the type of powersource, etc.
● Contributes to the maintenance andexpansion of renewable energy sources● Provides additional renewable energy value

to the electricity you are currently using● Makes the introduction of renewable energyplans more accessible
CO2 ReductionPlan● Provides CO2-free value added to yourcurrent electricity● Specialized in the value of zero-carbon

emissions