Materiality for the Kansai Electric Power Group(Important issues)
Kansai Electric Power Group
Overview

Aiming to achieve sustainable growth of our Group and also contribute to the sustainable development of society through the pursuitof SDGs and the resolution of other global issues, along with the formulation of our new Medium-term Management Plan (2021-2025),
we have identified the following 10 themes for the Group’s materiality (important issues).

SDGs associated with the identified materiality

E

Increase profitability by providing new value
Value Creation StoryE S G

Promote zero-carbon efforts

Business Strategies

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
Promote diversity and build a safe and comfortable working
environment

Business Overview

S

Appropriate risk management in supply chain

Foundation to
Support Value Creation

Step up efforts to develop and secure human resources

Deepen bilateral communication with stakeholders

G
Firmly establish governance and observe strict compliance

STEP❶
Exhaustively identify risks that may hinder
opportunities to encourage achieving
the goals of the Medium-termManagement 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 andopportunities.

STEP❷
Organize “important
issues” to respond to
identified risks andopportunities.

STEP❸

STEP❹

Evaluate the significance andappropriateness of important issues forstakeholders, based on the opinions ofshareholders and investors as well as theissues seen as important in the ESG
external evaluation.

The Executive Meeting and
the Board of Directors holddiscussions to identify 10
material issues.

Financial andCorporate Information

Materiality identification process

We refer to the GRI standards (including aspects specific to power) as fundamental requirements that should be considered in reviews.

22

Value Creation Story

Materiality for the Kansai Electric Power Group (Important issues)

Equity ratio

Strengthen resilient business
infrastructure on the condition of
ensuring safety

Achieve business innovation andenhance information security
utilizing digital technologies

Earn trust in our business areas andcontribute to regional revitalization

Promote diversity and build a safe
and comfortable working
environment• Interruption of stable power supply due to insufficientmeasures 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 stagnationin expert personnel development• Intensification of domestic retail power sales• Country and market risks related to overseas businessexpansion• Erosion of trust resulting from lack of communication
with local communities• Intensification of personnel hiring competition due toshrinking labor force• Lost business opportunities due to slow business model
reform and technological innovation as well as stagnationin expert personnel development• Changes in electricity usage patterns due to technologicalinnovations• Expansion of domestic infrastructure business resulting from 5G
popularization• Improved productivity and creation of new value through theutilization of digital technologies• Business opportunities resulting from the diversification of needs,
including decentralization• Business opportunities resulting from increased overseas energy
demand• Expanded business opportunities by the liberalization ofelectricity 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 workstyleinnovation

Appropriate risk management insupply chain• Damage to corporate value due to safety issues or serious
compliance violations including the supply chain

Step up efforts to develop andsecure human resources• Intensification of personnel hiring competition due toshrinking labor force• Lost business opportunities due to slow business model
reform and technological innovation as well as stagnationin expert personnel development• Creation of new value through the utilization of diverse personnel• Increased productivity as a result of promoting workstyleinnovation• Risk of failure in gaining the understanding of stakeholders
due to insufficient information disclosure resulting from anunsatisfactory response to social demands such as ESG, etc.

• Gain understanding of our business through timely and adequate
information dissemination and communication with stakeholders

Deepen bilateral communication
with stakeholders

Keep the top spot for the amount of zero-carbon power generation in Japan.
Halve CO emissions associated with power generation in Japan in FY 2025
(compared to FY 2013)• Retain the top spot for the amount of zero-carbon power generation in Japan (based on
surveys and comparison of the Survey of Electric Power Statistics).
• Reduction of about 40% compared to FY 2013 (FY 2020 result: Approx. 30.40 million t-CO).

• Further development and utilizationof renewable energy sources

Achieve renewable energy installed capacity of “6 million kW by 2030s” and acapacity of “2 million kW or more new development in Japan and abroad”• Achieved renewable energy installed capacity of “approx. 4.14 million kW” and a capacity of“0.61 million kW for new development”

Kansai ElectricPower Co., Inc.

• Maintain and improve thermal
efficiency of thermal power plants

Achieve benchmark indicators* (A: 1.00, B: 44.3%)* Indicators based on the benchmark system of the Law Concerning the
Rational Use of Energy• Achieved benchmark indicators* (A: 1.00, B: 44.3%)

Kansai Transmission
and Distribution, Inc.

• Reduce transmission and distribution
loss• Continuation of safe and stable
operation of nuclear power plants

Maintain and lower transmission and distribution loss rate

• Transmission and distribution loss rate “5.1%”

Continue with safe and stable operation based on the operation plan
(Zero unplanned stoppages)• Safe and stable plant operation(Zero unplanned stoppages)

Annual average outage time per household “Maintaining the highest
standard in the world”“Appropriate implementation” of renewal of transmission towers andconcrete pillars (aging measures)• Annual average outage time per household “8 minutes”
Renewal of transmission towers and concrete pillars in a planned manner (aging measures)

Number of participants in comprehensive emergency response drills “800 or more”
Active participation in disaster response training sponsored by external
disaster response agencies
Number of participants in education and lectures and number of trainings(preparation for nuclear power disasters)• Number of participants in comprehensive emergency response drills “1,175”• Participation in disaster response training sponsored by external disaster response agencies“12 sessions” (number of training sessions held), Number of participants in education andlectures (preparation for nuclear power disasters) “Approx. 5,400”, Number of training
sessions “Approx. 5,200 sessions”• Assure public security at power
facilities

Number of injured ordinary citizens “None”• Number of injured ordinary citizens “6”Kansai ElectricPower Co., Inc.
Kansai Transmission
and Distribution, Inc.

• Cultivation of DX human resources

Promote development of DX human resources through specialist trainings,
etc.

• Number of DX training participants “214”Kansai ElectricPower Group• Information security management

Major information security incidents “0”• Major information security incidents “1”Kansai ElectricPower Co., Inc.

• Activities that serve communities

Sustainable community development plans realized• Number of sustainable community plans realized “11”• Efforts to apply customer opinions

Implementation of continuous efforts• Number of reform cases based on customer feedback “140”• Quality improvements made forcustomers

Customer satisfaction rate “90.0% or more”• Customer satisfaction rate “91.5%”• Employee health and safety

Accident frequency rate “0”• Accident frequency rate “0.28”• Promotion of diversity

Ratio of female managers and number of female senior managers “Increase to
more than threefold those of FY 2018 by the end of FY 2030 (to 6.3% and 117
persons, respectively)”
Female employment ratios “40% or more for office jobs and 10% or more fortechnical jobs”
Accelerate employment of persons with disabilities• Rate of female managers “2.6%,” number of female senior managers “52”• Female employment ratios “47% for office jobs and 10% for technical jobs”• Employment rate of persons with disabilities “2.6%”• Creation of workplaces where
working is easy

Rate of paid leave utilization “90% or more”
Cut total working hours “by 5% versus FY 2015, or 190 hours/year, which isequivalent to overtime hours per person,” achieve male employee
childrearing leave utilization rate of “90% or more,” and enhance employee
turnover prevention measures• Rate of paid leave utilization “95.5%”• Overtime hours per employee “236 hours/year”• Rate of male employee childrearing leave utilization “98%”• Turnover rate “0.58%”• Implementation of CSR-based
Procurement Policy and promotion of
their adoption by suppliers

Questionnaire implementation rate regarding procurement activities of new
suppliers (Sourcing and Procurement Division contracts) “100%”
Implement questionnaire in FY 2019–2021 for the approximate top 200
business partners whose transaction amounts are among the highest with us• Questionnaire implementation rate regarding procurement activities of new suppliers(Sourcing and Procurement Division contracts) “75%”• Questionnaire implementation rate regarding procurement activities of business partners“42%”• Development of employee skills andabilities

Promotion of human resource development to endure in the highly
competitive environment• Number of group training participants“30,547”• Time spent on training per employee“37.6 hours”• Strengthening of personnel hiring

Steady achievement of recruitment plan
• “Number of (planned) new hires: 450 “• Increase of mid-career recruitment• Number of new hires “476”• Number of mid-career recruits “28”To be further increased (FY 2022 recruitment plan “35”)• Information release for anddiscussions with shareholders andinvestors (including ESG)
• Appropriate information releases atappropriate times

Promotion of communication with stakeholders
Improvement of ESG external evaluation• “Timely and adequate information dissemination through various types of media toshareholders (investors), and dialogue with them”• “Enrichment of disclosure content considering opinions of shareholders (investors)”• “Continuously being selected as a component of DJSI Asia Pacific”• Strict enforcement of compliance

Major social compliance violations “0”Major environmental compliance violations “0”• Major social compliance violations “7”• Major environmental compliance violations “1”• Promotion of Compliance Hotline
utilization

Number of consultations with Compliance Hotline and number of majorcompliance violations among these• Number of consultations with Compliance Hotline “74” and number of major complianceviolations among these “1”• Maintaining and strengthening
governance system

Steady annual implementation of effectiveness evaluation of the Board of
Directors, etc. and continuous improvement based on the evaluation results• “Building a new business management system, including transition to a company with anominating committee, etc.”• “Implementation of questionnaires on the effectiveness of the Board of Directors, etc. bythird-party organizations and utilization of evaluation results for further improvement”

Kansai ElectricPower Co., Inc.
Kansai Transmission
and Distribution, Inc.

Kansai ElectricPower Co., Inc.
Kansai Transmission
and Distribution, Inc.

Kansai ElectricPower Co., Inc.
Kansai Transmission
and Distribution, Inc.

Kansai ElectricPower Co., Inc.

Kansai ElectricPower Co., Inc.
Kansai Transmission
and Distribution, Inc.

Kansai ElectricPower Group

Kansai ElectricPower Group

Firmly establish governance andobserve strict compliance• Damage to corporate value due to safety issues or serious
compliance violations including the supply chain
Kansai ElectricPower Co., Inc.

23

Kansai Electric Power Group Integrated Report 2021

• Ordinary profits “153.8 billion yen”
• Equity ratio “20.9%”• ROA “2.2%”• FCF “-291.5 billion yen”

• Advancement of efforts to control
CO emissions

Kansai ElectricPower Group

Kansai Transmission
and Distribution, Inc.

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

ROA
FCF

Kansai ElectricPower Co., Inc.
• Continued aging of power supply facilities• Facility troubles caused by natural disasters, including
abnormal weather phenomena caused by 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 insufficientmeasures against cyber attacks and infectious diseases• Tight supply-demand situation due to severe weather(intense heat and cold)• Revenue assurance“More than 100 billion yen on average over 3 years (FY
2021-2023)”“More than 250 billion yen (FY 2025)”“More than 20% (FY 2021-2023)”“More than 23% (FY 2025)”“More than 1.5% on average over 3 years (FY 2021-2023)”“More than 3.5% (FY 2025)”
Less than -50 billion yen on average over 3 years (FY
2021-2023)”“More than 200 billion yen (FY 2025)”
Register a surplus across total income booked between
FY 2021 and FY 2025

• Maintaining power supply quality• Preparation for and handling ofaccidents and disasters

Value Creation Story• New revenue growth opportunities resulting from strengthening
trends for ESG investment and decarbonization• Expansion of renewable energy investment opportunities inJapan and abroad• Revenue growth opportunities arising from establishing newmarkets• Increased interest in energy due to advancements in energy
conservation

Ordinary profits

Consolidated base

FY 2020 results

Main efforts and objectives

Business Strategies• Substantial revision of regulations and policies affecting
existing businesses as a result of strengthening
countermeasures for climate change issues• 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 technologicalinnovations• 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

Boundary(extent included in total)

Business Overview

Promote zero-carbon efforts• 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 from other industries• Intensification of customer acquisition competition in the
FTTH and mobile marketplaces• Intensification of competition to acquire the excellent realestate properties in Japan• Country and market risks related to overseas businessexpansion

Opportunities

Foundation to
Support Value Creation

Increase profitability by providing
new value

Risks• Total training cost
“1,540 million yen”
• Training cost per employee“85,800 yen”

Financial andCorporate Information

Materiality

Kansai Electric Power Group
Overview

Risks and opportunities, and objectives and results of materiality (important issues)24