Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management PlanBusiness Overview

Foundation to Support Value Creation

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) wasformulated 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, inresponse 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 stockmarket. 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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