Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

BXFoundation to Support Value Creation

Financial and Corporate Information

DX Strategy■ Strategy formulation and promotion structure■ DX promotion status (Fostering awareness)

At the Group, DX is positioned as an indispensable means for realizing the three pillars set forth in the Medium-term Management
Plan (EX, VX, and BX). As a driving force for DX, the DX Strategy Committee was set up in 2018 and has been studying andsequentially rolling out specific initiatives through 31 rounds of discussion held as of the end of fiscal 2022. Additionally, in the sameyear, K4 Digital Co., Ltd. was established jointly with Accenture Japan Ltd. to draw on our internal and external expertise forsupporting initiatives in our respective departments. In particular, while we have been focusing on initiatives that contribute toimproving productivity, going forward we will further accelerate and bolster value creation initiatives as well.

The Group holds a group-wide event “Digital Day” once a year,
fostering awareness of DX promotion in presenting keynote
speeches by other leading companies in DX, messages fromour senior management in each division, introduction of DX
case studies, and awards for key individuals in DX promotion.

Overall picture of prioritized items—Contribution to KX—
Medium-termManagementPlan

We aim to continuously serve our customers and communities,
KX while contributing to attaining a sustainable society.
Seeking to achieve
EX zero-carbon emissions

Existing business areas
DXDigital
infrastructure

VX Transforming into a service provider

Building a robust corporate
BX constitution

Step up efforts in value creation
toward the future

New business areas

Productivityimprovement

DX human capital developmentValue creation

DWS tool development

Data analysis infrastructure development
Automation/decision
makingAI
Data■ DX promotion status (Achievement)
From the start of active investment in DX in fiscal 2019, we havebeen steadily achieving DX results of approx. 20 billion yen peryear as of fiscal 2022. IRR is expected to be approx. 10%.
(billions of yen)

Study/implementation of measures

Respective divisions● Set up a department responsible forpromotion in each division● Formulate the division’s DX plan, study
and implement specific initiatives

Kansai Electric Power Group Integrated Report 2023

Effects

Cumulative balance
IRR: approx. 10%

Results for FY 2022:
approx. 20 billion yen

Overall strategy and direction

DX Strategy Committee● Division heads and a director examinestrategies● Formulation of our DX strategies andplans● Supervision, management, and support
for initiatives taken by each division

Investment0(FY)Technical support

K4 Digital Co., Ltd.
● Established jointly with Accenture
Japan Ltd.
● Supports initiatives taken in each division
with the latest digital technology

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028(Result)(Forecast)58

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

BXDX Strategy■DX promotion status (Human capitaldevelopment)

Highly-skilled DX human capital
Having defined the “data scientist” who can perform highlevel data analysis and “digital consultant” who can make aspecific plan and support the digitization of advanced
business issues, we have seconded them to K4 Digital Co., Ltd.
to execute their duties. We invite applications from employeeswith digital expertise for our in-house personnel system(Super Professional Career Challenge System), allowing themto exercise their expertise through duties appropriately

For promoting DX, digital human resources are essential, withprofessional knowledge and expertise in digital technology.
To solve business issues using data analysis and digitaltechnology, the Group is working to develop and secure“highly-skilled DX human capital” and “DX promoters fromrespective operating divisions,” as well as to enhance DX
literacy for all employees.

Qualified applicantsPersonnel development policies

Development target(FY 2025)

Highly-skilledDX human capital

Approx.
40 individuals

DX promotersfrom respective
divisions

Approx.

3,200 individuals
Approx.

17,000* individuals●Data analysis

Solving business issues

Data scientist

Digital consultant

Secondment to K4 Digital Co., Ltd. and execution of duties

Digital translator

Data analyst
Basic data analysis training● Training for utilizing
visualization tools●Practical training for consulting● Practical training for DX application● Project team-based on-the-job
training●・DX training content for all employees

All employees* Including DX promoters from respective divisions

AAgileRespond to changes in theenvironment and market in anagile and flexible manner throughtrial and error.

C

Customer value (CX)

Focus on customer experienceand solve business issues in acustomer-oriented manner.

Kansai Electric Power Group Integrated Report 2023

DX

Business intelligence

B

Digital technology

DAnalyze an enormous quantity ofdata to gain new insights andapply them to decision making inbusiness.

Utilize digital technology best
suited for solving management
and business issues.

assigned. In this way, we are striving to secure highly-skilled
DX human capital through mid- career recruitment andselection from our IT and other operating divisions. To date,
we have secured 28 highly-skilled DX human capital. With theannual targets set, we aim to train 40 employees by the end of
fiscal 2025.

DX promoters from respective divisions
Having defined the “data analyst” who can perform businessdata analysis and “digital translator” who can make a specificplan and support the digitization of business issues, K4 DigitalCo., Ltd. is playing a central role in fostering DX promoters in
respective operating divisions by providing them withtraining for data analysis and practical training for DX
application. Thus far, approx. 1,200 DX promoters have been
trained, and approx. 3,200 more will be trained by the end offiscal 2025.

All employees (approx. 17,000 employees are qualified)
We have defined the “Kansai Electric Power’s ABCD for DX” (A:Agile, B: Business intelligence, C: Customer experience, and D:Digital technology) as the DX literacy that all employees of theKansai Electric Power Co., Inc. and Kansai Transmission andDistribution, Inc. should acquire.
As a strategy to ensure acquisition of DX literacy andreskilling for all employees, we are striving to improve the DX
literacy of all employees by implementing DX training
sessions (videos) required for all employees, and incorporating
DX training (classroom lectures and workshops, etc.) into
stratified training programs in cooperation with the Office of
Human Resources and Safety Management.
We also plan to provide DX training for management (e.g.,
introduction of advanced DX case studies on a global scale).

59

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management PlanBusiness Overview

Foundation to Support Value CreationFinancial and Corporate Information

BXDX Strategy■

Specific DX case studies (Productivityimprovement)

While the Company possesses a variety of assets (facilities andhuman resources), the environment surrounding the electric
power industry is facing a number of challenges, including adecreasing workforce due to aging human capital, aging
facilities, difficulty in handing down technology, andintensifying natural disasters. The decreasing workforce is amajor challenge, in particular. With the number of mid-careerand younger workers decreasing and experienced workers
accounting for a majority in the workforce, it is alreadybecoming difficult to pass on technology, and a large numberof facilities need to be maintained by a smaller number ofworkers, posing a major challenge to us.
To solve this problem, it is necessary to reduce theoverwhelming amount of work through operational reform, as
well as realizing site maintenance work, which is difficult without
skilled labor. To that end, we are devoted to Future Operation, aproject to fundamentally reform business operations on adivision-wide and cross-divisional basis by combining various
digital technologies, led by our power generation divisions andKansai Transmission and Distribution, Inc.
Future Operation envisions what we aspire to be from a
medium- to long-term perspective, in view of future changes
in our internal and external environments, and aims fortransformation in the Group.
As an example of our efforts, we are promoting “smartsecurity” to maintain and improve quality and systems withthe use of the latest digital technology in security operations
such as patrol inspections and troubleshooting. We havealready introduced smart security for inspecting the inside ofstacks in thermal power plants, and will continue to expand
introduction in a variety of fields.
In the future, by utilizing image recognition, big data

Kansai Electric Power Group Integrated Report 2023

analysis, and other forms of technology, and by transferring
security capabilities, which have been human skills, tomachines, we intend to minimize human intervention andfurther advance remote and automated operation.
Development of inspection methods for the inside of stacks ofthermal power plants using self-flying drones
Inspection with amaintenance lift(Conventional)

The 5th Infrastructure Maintenance AwardsReceived the Minister of Economy, Trade andIndustry Award
Inspection with drones

AI capability was developed jointly with an AI venturecompany that won a competition for AI achieving optimal
operation of a grid storage battery. We developed andverified AI making full use of approx. 50 million records of datathat reflect our knowledge of operation methods for different
types of resources, market rules, etc., obtained from the past
VPP demonstrations and actual transactions in various markets.
E-Flow*2 is ready to start optimal operation of grid storage
batteries using K-VIPs+ by the end of fiscal 2023. This willcontribute not only to improving profits but also to stableelectricity supply and further expanded introduction ofrenewable energy sources.
enewable energy sources owned by customers such as solar power generation*1:	Rdevices,
storage batteries, electric vehicles (EVs), production facilities, etc.
new company established by the Kansai Electric Power Co., Inc. in April 2023
*2:	Athat
specializes in the transaction and operation of distributed energy resources(Utilization of in-housedeveloped drones)
Drone flight status(Shot from the bottomof the stack)Omnidirectional camera*
enables on-the-spot statuschecking for the entire
interior of the image taken.
* Use of a single-lens reflex
camera enables us to checka crack as small as 0.3 mmin width.

Multi-use of DER

Achievements in VPP business· In response to multiple
power markets launchingin 2024· Know-how in DER operation· Rich operational performancedata· Insights and cutting-edge
technologies obtained throughdemonstration projects

Capacitymarket(kW)

JEPX(kWh)

Demandresponsemarket(△kW)

Latest regulatory knowledge· Various regulatory information
related to power transactions· Flexible adaptation toregulatory changes

Power control andmarket integration systemdevelopment technology
Achievement ofoptimal operation· Bidding plan creation using AI· Reliable DER control· Robust security design■ Specific DX case studies (New value creation)
The Group has developed K-VIPs+, a distributed service
platform equipped with AI capability (hereinafter, “K-VIPs+”),to achieve optimal operation of distributed energy
resources*1. This AI capability is an algorithm to calculate“when, in which market, and how we utilize resources foroptimal facility operation.”60