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

135

Frequently Asked
Questions

Frequently Asked Questions (IR FAQ)

Q1

What overall impact will the trend toward carbon neutrality have on
Kyushu Electric Power’s future performance?

Q3

What is the outlook for your future business performance?

In order to achieve carbon neutrality, it is crucial to promote both “lowering the carbon intensity of anddecarbonizing energy sources” on the supply side and “electrification” on the demand side. In terms ofsupply, we have been promoting the development of renewable energy to become the main source ofpower generation and maximizing use of nuclear power generation in an aim to achieve a low-carbon andsustainable society. In addition, to make the renewable energy business the core business of the Kyuden
Group, we will integrate the renewable energy business of Kyushu Electric Power and the subsidiary Kyuden
Mirai Energy to strengthen the business operation structure and thereby accelerate efforts to reach the 5,000
MW renewable energy development target for FY2030.
Renewable energy is expected to grow significantly as a growth business, and nuclear power is bothan environmentally friendly and economical source of power. We believe that they will both have a hugely
positive impact on our business performance.
In addition, on the demand side, we are also promoting efforts for electrification in all sectors, including
household, commercial, industrial, and transportation sectors, toward achieving our goal of contributing to
the electrification rate of Kyushu. We view the increase in total electric power sales due to the promotion ofelectrification as a positive contribution to our future business performance.

With regard to the financial forecast for FY2023, we expect consolidated ordinary income to be ¥120 billion.
This is due to a significant improvement in our income and expenditures, as four nuclear power plants will
be in operation following the completion of the Specific Safety Facilities, and the delayed effects of fuel costadjustments due to lower fuel prices will shift from the previous fiscal year’s losses to delayed gains.
In the medium term, we are working to achieve the ordinary income target of ¥125 billion in our FY2025
financial objectives.
In the Domestic Electricity Business, we aim for ordinary income of ¥75 billion through continued stable,
safe operation of four nuclear power plants and the expansion of total electricity sales volume with secured
optimal supply capacity.
With regard to growth businesses (renewable energy, overseas, ICT services, and urban development), we
aim to realize ¥50 billion overall through participation in geothermal and hydroelectric power development
and overseas renewable energy projects, which are the Group’s strengths, as well as participation in overseas
power generation and transmission projects that leverage the Group’s overall technologies and know-how.
This ¥50 billion target is expected to be achieved through projects we have already invested in or havedecided to invest in, and we are therefore confident that we will reach this target.

Q2

Q4

What is your vision for the future of your nuclear power business?

We recognize that nuclear power generation will continue to play a key role in achieving both carbon neutralityand a stable supply of electricity, as it is a stable power source unaffected by weather or climate, and does
not emit CO2 during operation.
In addition, given the low weight of fuel costs in power generation costs and the carbon emission
regulations to be introduced in the future, such as carbon pricing, we believe that nuclear power generation
can be expected to contribute to our income and expenditures over the medium to long term.
In the Sixth Strategic Energy Plan, which forms the basis for energy policy, nuclear power generationis positioned as an important source of baseload power for achieving carbon neutrality in 2050. Moving
forward, we will continue to make maximum use of our nuclear power plants currently in operation as wecontinuously work to improve their safety and reliability, based on the basic premise of prioritizing safety andgaining the understanding of local communities.

What is Kyushu Electric Power’s basic policy when it comes toshareholder returns?

Our basic policy on shareholder returns has historically been to maintain stable dividends, making decisions
based on a comprehensive review of our recent business performance, income and expenditures, andfinancial condition. Moving forward, we will first continue our efforts to restore our dividends to their preGreat East Japan Earthquake level of ¥50 per share as soon as possible during the current financial objective
period (until FY2025). Once accomplished, we will consider profit sharing based on our growth in areas otherthan our Domestic Electricity Business as we strive to further enhance shareholder returns while maintaining
stable dividend payments.