Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Materiality for the Kansai Electric Power Group (Important issues)
Aiming to achieve sustainable growth of our Group and also contribute to the sustainable development of society throughthe pursuit of SDGs and the resolution of other global issues, along with the formulation of our Medium-termManagement Plan (2021-2025), we have identified the following 10 themes for the Group’s materiality (important issues).

■ SDGs associated with the identified materiality
E SGE

Increase profitability by providing new value

STEP❶

Exhaustively identify risks that may hinder
opportunities to encourage achieving the goals of theMedium-term Management Plan (2021-2025),
evaluate these risks in terms of possibility ofoccurrence, chronology of occurrence and degree ofimpact, then extract about 500 items of material risks
and opportunities.

Promote zero-carbon efforts
Strengthen resilient business infrastructure on the condition ofensuring safety
Achieve business innovation and enhance information security
utilizing digital technologies
Earn trust in our business areas and contribute to regional
revitalization

S■ Materiality identification process

Promote diversity and build a safe and comfortable working
environment
Appropriate risk management in supply chain

STEP❷

Organize important issues to respond to identified
risks and opportunities for the Company after
confirming consistency with the Medium-termManagement Plan and risk map.

STEP❸

With reference to the opinions of shareholders andinvestors, as well as issues seen as important in theESG external evaluation, SDGs, various frameworks(International Integrated Reporting Framework, GRI
Standards, etc.), communication with stakeholders,
evaluation items from ESG surveys, etc., identify
important issues to be handled. Evaluate theirsignificance and appropriateness for stakeholders.

Step up efforts to develop and secure human resources
STEP❹

Deepen bilateral communication with stakeholders

G

Firmly establish governance and observe strict complianceKansai Electric Power Group Integrated Report 2023

The Executive Meeting and the Board of Directors
hold discussions to identify 10 material issues.
We refer to the GRI standards (including aspects specific to power) as
fundamental requirements that should be considered in reviews.

31

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Materiality for the Kansai Electric Power Group (Important issues)
Risks and opportunities of materiality (important issues)
Materiality

Opportunities

Risks
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Increase profitability byproviding new value

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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 fromother industries
Intensification of customer acquisition competition in the FTTH and mobile marketplaces
Intensification of competition to acquire the excellent real estate properties in JapanCountry and market risks related to overseas business expansion

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Promote zero-carbon efforts●

Substantial revision of regulations and policies affecting existing businesses as a result ofstrengthening countermeasures for climate change issues

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Strengthen resilient business
infrastructure on the condition ofensuring safety●●●

Achieve business innovation andenhance information security
utilizing digital technologies
Earn trust in our business areasand contribute to regional
revitalization
Promote diversity and build asafe and comfortable working
environment
Appropriate risk management insupply chain
Step up efforts to develop andsecure human resources
Deepen bilateral communication
with stakeholders
Firmly establish governance andobserve strict complianceKansai Electric Power Group Integrated Report 2023

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Continued aging of power supply facilities
Facility troubles caused by natural disasters, including abnormal weather phenomena causedby 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 insufficient measures against cyber attacks andinfectious diseases
Tight supply-demand situation due to severe weather (intense heat and cold)
Interruption of stable power supply due to insufficient measures 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 stagnation in expert personnel development
Intensification of domestic retail power sales
Country and market risks related to overseas business expansion
Erosion of trust resulting from lack of communication with local communities
Intensification of personnel hiring competition due to shrinking labor force
Lost business opportunities due to slow business model reform and technological innovation
as well as stagnation in expert personnel development

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Damage to corporate value due to safety issues or serious compliance violations including thesupply chain
Intensification of personnel hiring competition due to shrinking labor force
Lost business opportunities due to slow business model reform and technological innovation
as well as stagnation in expert personnel development
Risk of failure in gaining the understanding of stakeholders due to insufficient information
disclosure resulting from an unsatisfactory response to social demands such as ESG, etc.
Damage to corporate value due to safety issues or serious compliance violations including thesupply chain

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 technological innovations
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
New revenue growth opportunities resulting from strengthening trends for ESG investment
and decarbonization
Expansion of renewable energy investment opportunities in Japan and abroadRevenue growth opportunities arising from establishing new markets
Increased interest in energy due to advancements in energy conservation

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

Changes in electricity usage patterns due to technological innovations
Expansion of domestic infrastructure business resulting from 5G popularization
Improved productivity and creation of new value through the utilization of digitaltechnologies
Business opportunities resulting from the diversification of needs, including decentralization
Business opportunities resulting from increased overseas energy demand
Expanded business opportunities by the liberalization of electricity 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 workstyle innovation

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Creation of new value through the utilization of diverse personnel
Increased productivity as a result of promoting workstyle innovation
Gain understanding of our business through timely and adequate information disseminationand communication with stakeholders—32

Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business OverviewFoundation to Support Value Creation

Financial and Corporate Information

Materiality for the Kansai Electric Power Group (Important issues)
Objectives and results of materiality (important issues)
Of the initiatives for the identified materiality, we have extracted particularly important items to achieve the Medium-term Management Plan, with targets set as priorities.
Materiality

Non-financial activities

FY 2022 objectives●Advancement of efforts tocontrol CO2 emissions

Further development andutilization of renewableenergy sources

Promote zero-carbon
efforts

Maintain and improve
thermal efficiency ofthermal power plants●

Keep the top spot for the amount of zero-carbon
power generation in Japan.
Halve CO2 emissions associated with power
generation in Japan in FY 2025 (compared to FY 2013)

FY 2022 results
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Achieve 5 GW scale of new development and 9 GW
scale of cumulative capacity by 2040●●●

Achieved benchmark indicators (A: 1.00, B: 44.3%)

Rationalizing Energy Use and Shifting to Non-fossil Energy●●

includes power sources not under the jurisdiction of theRenewable Energy Division.

Keep the top spot for the amount of zero-carbon
power generation in Japan.
Halve CO2 emissions associated with power
generation in Japan in FY 2025 (compared to FY 2013)

Achieve 5 GW scale of new development and 9 GW
scale of cumulative capacity by 2040

Achieve benchmark indicators* (A: 1.00, B: 44.3%)* Indicators based on the benchmark system of the Act on

Rationalizing Energy Use and Shifting to Non-fossil Energy●Continuation of safe andstable operation of nuclear
power plants●3.92 GW*/9 GW or more (target)* The above figure is only for externally announced projects andAchieve benchmark indicators* (A: 1.00, B: 44.3%)* Indicators based on the benchmark system of the Act on

Retain the top spot for the amount of zero-carbon
power generation in Japan (based on surveys andcomparisons from the Survey of Electric PowerStatistics).
Reduction of about 49% compared to FY 2013

FY 2023 objectives

Continue with safe and stable operation based on theoperation plan
(Zero unplanned stoppages)

One case of unplanned stoppage* occurred atTakahama Power Station Unit 4, but the reactor
resumed power generation promptly after causeinvestigation and countermeasures wereimplemented. Safe and stable operation continued atother power stations.

●Continue with safe and stable operation based on theoperation plan
(Number of unplanned outages “0,” Nuclear power
generated “45.3 billion kWh”)* Takahama Power Station Unit 4 reactor automatic shutdown (fromJanuary 30, 2023 to March 25, 2023)●

Strengthen resilientbusiness infrastructureon the condition ofensuring safety

Preparation for andhandling of accidents anddisasters●●●Achieve business
innovation andenhance information
security utilizing digitaltechnologiesConduct group-wide comprehensive emergency
response drills
Active participation in disaster response training
sponsored by external disaster response agencies
Number of participants in education and lectures(preparation for nuclear power disasters)
Number of drills and training

DX-based efforts toaddress management
issues●Promotion of new value creation

Information securitymanagement●

Major information security incidents “0”Kansai Electric Power Group Integrated Report 2023

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Number of participants in group-wide comprehensive
emergency response drills “1,002”
Participation in disaster response training sponsoredby external disaster response agencies “41 sessions”(number of training sessions held)
Number of participants in education and lectures“Approx. 5,300”
Number of drills and training sessions “Approx. 7,100”

Number of new value sources created “41”“1” incident (including Kansai Transmission andDistribution, Inc.)

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Conduct group-wide comprehensive emergency
response drills, training, awareness raising, etc.
Active participation in disaster response training
sponsored by external disaster response agencies
Evaluation of nuclear operator emergency responsedrills by the Secretariat of the Nuclear Regulation
Authority: Grade A for all items

DX-based efforts to address management issues [New](Target: 25.2 billion yen in single-year benefits from DX)

Major information security incidents “0”33Kansai Electric Power Group Overview

Value Creation Story

Medium-term Management Plan

Business Overview

Foundation to Support Value Creation

Financial and Corporate Information

Materiality for the Kansai Electric Power Group (Important issues)
Objectives and results of materiality (important issues)
Materiality

Non-financial activities
Industrial accident status

FY 2022 objectives●●

Promotion of diversity●●

Promote diversity andbuild a safe andcomfortable workingenvironment●●

Creation of workplaces
where working is easy

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Prevention of human rights
violations in businessactivities

Appropriate risk
management in supply
chain

Implementation of Basic
Procurement Policy andpromotion of its adoption
by suppliers

Accident frequency rate “0”Increase the ratios of female managers and female
senior managers to “more than threefold those ofFY 2018 (6.3% and 4.8%, respectively) by the end of
FY 2030”
Female employment ratios “40% or more for officejobs and 10% or more for technical jobs”
Accelerate employment of persons with disabilities
Rate of paid leave utilization “90% or more”
Total working hours “cut by 5% versus FY 2015, or 190
hours/year, which is equivalent to overtime hours perperson”
Male employee childrearing leave utilization rate at“the same level as that of female employees”
Average number of childrearing leave days taken bymale employees “One month or more by FY 2025”
Enhance employee turnover prevention measures

FY 2022 results●

Conducting a questionnaire survey for suppliers topromote their adoption of the Basic Procurement
PolicyAccident frequency rate “0.29”

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Ratio of female managers “3.2%”, Ratio of female senior
managers “2.7%”
Female employment ratios “49% for office jobs and14% for technical jobs”
Employment rate of persons with disabilities “2.5%”

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Rate of paid leave utilization “99.4%”
Overtime hours per employee “250 hours/year”
Rate of male employee childrearing leave utilization“124%”
Average number of childrearing leave days taken bymale employees “14.5 days”
Turnover rate “0.90%”

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FY 2023 objectives

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Conducted a questionnaire survey for new suppliers
regarding their procurement activities
Conducted a human rights due diligence fact-finding
survey for major and new suppliers

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Step up efforts todevelop and secure
human resources

Development of employee
skills and abilities

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Strengthening ofpersonnel hiring●

Strict enforcement ofcompliance

Firmly establish
governance andobserve strict
compliance

Promotion of human resource development toendure in the highly competitive environment●●●

Maintaining andstrengthening governancesystem●Steady achievement of the recruitment plan “Numberof planned new hires for FY 2023: 470 (New hires: 400,Mid-career recruits: 70)”
Increase of mid-career recruitment
Major social compliance violations “0”Major environmental compliance violations “0”Steady annual implementation of effectivenessevaluation of the Board of Directors, etc. andcontinuous improvement based on the evaluation
results
Checking the status of maintenance and operation ofinternal control systems

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Number of group training participants “38, 685”
Total training cost “1,479 million yen”
Time spent on training per employee “43.5 hours”
Training cost per employee “85,400 yen”●

Number of new hires“484 (New hires: 414, Mid-career recruits: 70)”
Mid-career recruiting plan “70 individuals” for FY 2023,“70” for FY 2024
Major social compliance violations “4”Major environmental compliance violations “2”●●●An effectiveness evaluation of the Board of Directors,etc. was implemented using a third-party organization.
Based on the results, major future issues and direction
for addressing these issues were reported to the Boardof Directors.
Appropriately implemented. See pages 101-111 of thisReport for details.

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Accident frequency rate “0”Increase the ratios of female managers and female
senior managers to “more than threefold those of
FY 2018 (6.3% and 4.8%, respectively) by the end ofFY 2030”
Female employment ratios “40% or more for officejobs and 10% or more for technical jobs”
Accelerate employment of persons with disabilities
Rate of paid leave utilization “90% or more”
Total working hours “cut by 5% versus FY 2015, or 190
hours/year, which is equivalent to overtime hours perperson”
Male employee childrearing leave utilization rate at“the same level as that of female employees”
Average number of childrearing leave days taken bymale employees “One month or more by FY 2025”
Enhance employee turnover prevention measures
Number of human rights violations (serious humanrights violations “0”)Conducting a questionnaire survey for suppliers toencourage permeation of the Basic Procurement
Policy and the Declaration on Partnership Building
The following KPIs have been in place since FY 2023.
Evolution of diverse “individuals” and building anorganization driven by diversity:“Growth oriented index,” “Growth realization index,”and “Diversity realization index”
Building a work environment that supports diverse“individuals”:“Satisfaction level with working environment”
Number of planned new hires for FY 2024:“480 (New hires: 410, Mid-career recruits: 70)”
Major social compliance violations “0”Major environmental compliance violations “0”Annual implementation of effectiveness evaluation of
the Board of Directors, etc. and continuous
improvement based on the evaluation results
Attendance rate at the Board of Directors meetings“75% or more”

See pages 10-12 of our ESG Report for all materiality-related indicators.

Kansai Electric Power Group Integrated Report 2023

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