九州電力（9508） – The Fiscal Year Ended March 31, 2022 Financial Results Overview

April 28, 2022The Fiscal Year Ended March 31, 2022 Financial Results Overview 〔Japan GAAP〕（Consolidated）Kyushu Electric Power Co., Inc.Stock code: 9508 URL: http://www.kyuden.co.jp/english_index.htmlRepresentative: Mr. Kazuhiro Ikebe, President & Chief Executive OfficerContact: Investor Relations Group, Corporate Strategy Division. Tel: +81-92-726-1575 General Meeting of Stockholders date (plan) : June 28,2022Commencement of payment of year-end dividend: June 29,2022Annual security report submission date (plan): June 29,2022Preparation of supplementary materials for quarterly financial results: YesInformation meeting for quarterly financial results: Yes (for analysts and institutional investors)Stock listed on: Tokyo SE, Fukuoka SE (Rounded down to the nearest million yen)1. Consolidated Financial Results for FY2021(April 1, 2021 to March 31, 2022)(1) Consolidated Operational ResultsSalesOperating incomeOrdinary income(% shows the changes from the previous FY)(Unit: million yen) (%)(Unit: million yen) (%)(Unit: million yen) (%)FY2021 ended March 31, 20221,743,31014.548,624-36.832,384-41.3FY2020 ended March 31, 20211,521,977−76,984−55,179−(Note) Comprehensive income : FY2021 15,405 million yen (-75.3%) FY2020 62,430 million yen (−%)Profit attributable toowners of parentNet incomeper shareFully-dilutednet earningsper shareNet returnonshareholders’equityRatio ofcurrentincome tototal capitalRatio ofcurrentincome tosalesFY2021 ended March 31, 2022FY2020 ended March 31, 2021(Unit: million yen) (%)6,873 -78.4―31,835(Unit: yen) 10.0962.86(Unit: yen) ―56.39(%)1.15.0(%)0.61.1(%)2.85.1(Reference) Investment Profit/Loss under Equity Methods : FY2021 7,617 million yen FY2020 9,884 million yen (Note1) We have applied the “Accounting Standard for Revenue Recognition” from the beginning of the first quarter starting April 1st,2021. Based on this new standard, the “Electricity Business Accounting Regulations” were revised and we have made changes in ourmethod of accounting. “Renewable Energy Power Promotion Surcharge” and “Grant based on the Act on Purchase of Renewables”,which are related to the feed-in tariff system for renewable energy, are not being recorded as net sales but are being deducted fromcorresponding operating expenses. As a result, the consolidated operating results for the fiscal year ending March 31, 2022 are shownafter retroactive application of the above. The percentage change from the same period of the previous fiscal year is not shown becauseit has not been calculated.(Note2) Fully-diluted EPS for FY2021 is not indicated because there are no delutive potential shares(2) Consolidated Financial PositionTotal assetsNet assets(Unit: million yen)(Unit: million yen)Shareholders’equity ratioNet assetsper shareFY2021 ended March 31, 2022FY2020 ended March 31, 20215,342,3505,128,563676,337681,470(Reference) Shareholders’ equity: FY2021 645,497 million yen FY2020 652,307 million yen(Note) We have applied the “Accounting Standard for Revenue Recognition” from the beginning of the first quarter startingApril 1st, 2021. As a result, the consolidated financial status for the fiscal year ended March 2021 is shown after theretrospective application of the said accounting standards.(%)12.112.7(Unit: yen)1,151.731,165.39(3) Consolidated Cash FlowFY2021 ended March 31, 2022FY2020 ended March 31, 20212. DividendsCash flow fromoperating activities(Unit: million yen)257,811253,459Cash flow frominvestmentactivities(Unit: million yen)-320,879-330,587Cash flow fromfinancing activitiesCash and cashequivalents balanceas of term-end(Unit: million yen)79,42895,549(Unit: million yen)241,756223,901Annual dividends per shareTotal dividends(annual)Payout ratio(consolidated)Dividend rate for netassets (consolidated)(Record date)1QInterim3QFY2020 ended March 31, 2021 ―FY2021 ended March 31, 2022 ―(Unit: yen)(Unit: yen)(Unit: yen)17.50 ―20.00 ―Year-end(Unit: yen)17.5020.00Total(Unit: yen)35.0040.00(Unit: m illion yen)16,58718,956FY2022 ending March 31,2023(forecast)―――――(%)55.7396.3―(%)3.13.5 (Note) The dividends for FY2022 have not been decided yet.We will provide an update as soon as it is possible to make asufficiently reliable forecast of the dividends for FY2022.Dividends mentioned above are regarding common shares. See’Dividends for Class Shares’ regarding dividends for class shares which differ in shareholders’ right from common shares. 3. Forecast of Financial result for FY2022 (April 1, 2022 to March 31, 2023)Both Sales and Ordinary Income have not been decided yet because it is difficult to reasonably calculate the forecast values dueto the extremely uncertain situation in Russia and Ukraine, which impacts fuel prices and other factors.We will provide an updateas soon as it is possible to make a sufficiently reliable forecast of Financial Results for FY2022.※ Note(1)Changes in significant subsidiaries (changes in scope of specified subsidiaries) : No Newly added:0 Excluded:0(2) Changes in accounting principles, changes in accounting estimates, restatement ① Changes in accounting principles in line with revised accounting standards : Yes ② Changes in accounting principles other than ① : No ③ Changes in accounting estimates : No ④ Restatement : No (Note) For details, see “(5) Notes on Consolidated Financial Statements : Changes in accounting policies on Page 10.(3) Number of common stocks issued and outstanding　① Total stocks including treasury stocks at the end of period FY2021 474,183,951 shares FY2020 474,183,951 shares　② Treasury stocks at the end of period FY2021 1,463,267 shares FY2020 1,158,956 shares　③ Average number of stocks during the period FY2021 472,851,195 shares FY2020 473,014,996 shares (Note) The number of our shares regarding “Board Benefit Trust (BBT)” held by the Trust was included in the number of treasury stocks at the end of period ( 897,000 shares as of FY2021 and 603,000 shares as of FY2020) . In addition, the number of our shares held by the Trust was included in the number of treasury stocks, which was to be deducated from the calculation of the average number of stocks during the period. (772,000 shares for FY2021 and 618,000 shares for FY2020)(Reference) Outline of Non-consolidated Financial Results Non-consolidated Financial Results for FY2021 (April 1, 2021 to March 31, 2022)(1) Non-Consolidated Operational ResultsSalesOperating incomeOrdinary income(% shows the changes from the previous FY)(Unit: million yen) (%)(Unit: million yen) (%)(Unit: million yen) (%)FY2021 ended March 31, 2022FY2020 ended March 31, 20211,455,6091,260,117 ―15.58,045 -76.734,5210.311,829 -45.721,780 105.5Net incomeNet earnings per shareFully-diluted net earnings per shareFY2021 ended March 31, 2022FY2020 ended March 31, 20215,081 -52.410,671 ―(Unit: million yen) (%)(Unit: yen) 6.318.11(Unit: yen) ―16.24(Note) Fully-diluted EPS for FY2021 is not indicated because there are no delutive potential shares (2) Non-Consolidated Financial PositionTotal assetsNet assets(Unit: million yen)(Unit: million yen)Shareholders’equity ratioNet assetsper shareFY2021 ended March 31, 2022FY2020 ended March 31, 20214,631,3194,453,127430,912451,425(Reference) Shareholders’ equity: FY2021 430,912 million yen FY2020 451,425 million yen(%)9.310.1(Unit: yen)697.35740.24*Financial results are not subject to audit procedures*Notes on the proper use of the forecastsLooking-forward statements are based on information available at the date of the release of this document. Due to variousfactors, the actual result may differ from these statements.We will post supplementary materials for financial results on our website.(Reference) Dividends for Class SharesThe breakdown of dividend for class shares which differ in shareholders’ rights from common shares is as follows.Class Apreferred sharesAnnual dividends per share1Q(Unit: yen)2Q(Unit: yen)3Q(Unit: yen)Year-endTotal(Unit: yen)(Unit: yen)FY2020 ended March 31, 2021FY2021 ended March 31, 20221,050,000.00―1,050,000.002,100,000.001,050,000.001,050,000.002,100,000.00FY2022 ending March 31, 2023(forecast)――――――― (Note) The dividends for FY2022 have not been decided yet.We will provide an update as soon as it is possible to make asufficiently reliable forecast of the dividends for FY2022. Kyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 ○ Table of Contents of Attached Material 1. Consolidated Financial Statements and Main Notes・・・・・・・・・・・・・・・・・・・・ 2 (1) Consolidated Balance Sheets ・・・・・・・・・・・・・・・・・・・・・・・・・・ 2 (2) Consolidated Income Statements and Consolidated Comprehensive Income Statements・・・・ 4 4 (3) Consolidated Statements of Changes in Shareholders’ Equity ・・・・・・・・・・・・・・ 6 6 (4) Consolidated Statements of Cash Flows ・・・・・・・・・・・・・・・・・・・・・・ 8 8 8 (5) Notes on Consolidated Financial Statements ・・・・・・・・・・・・・・・・・・・・ 10 10 (Note on the premise of going concern)・・・・・・・・・・・・・・・・・・・・・・・ 10 10 (Changes in accounting policies) ・・・・・・・・・・・・・・・・・・・・・・・・・ 10 (Segment information)・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・11 (Significant subsequent event)・・・・・・・・・・・・・・・・・・・・・・・・・・・13 2. Others・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・14 (1) Major effects of the Corona virus・・・・・・・・・・・・・・・・・・・・・・・・・・14 (2) Difference from the forecast for the fiscal year 2021・・・・・・・・・・・・・・・・・・ 14 Please note that this purports to be an accurate and complete translation of the original Japanese version prepared for the convenience of our English-speaking audience. However, in the case of any discrepancy between the translation and the Japanese original, the latter shall prevail. – 1 – 1. Consolidated Financial Statements and Main Notes （1） Consolidated Balance Sheets Assets　Non-current assets　　Electric utility plant and equipment　　　Hydroelectric power production facilities　　　Thermal power production facilities　　　Nuclear power production facilities　　　Internal combustion engine power production facilities　　　Renewable power production facilities　　　Transmission facilities　　　Transformation facilities　　　Distribution facilities　　　General facilities　　　Other electric utility plant and equipment　　Other non-current assets　　Construction in progress　　　Construction and retirement in progress　　　Special account related to nuclear power decommissioning　　　Special account related to reprocessing of spent nuclear fuel　　Nuclear fuel　　　Loaded nuclear fuel　　　Nuclear fuel in processing　　Investments and other assets　　　Long-term investments　　　Retirement benefit asset　　　Deferred tax assets　　　Other　　　Allowance for doubtful accounts　Current assets　　Cash and deposits　　Notes and accounts receivable – trade　　Notes and accounts receivable – trade, and contract assets　　Inventories　　Other　　Allowance for doubtful accounts　Total assetsKyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 As of March 31, 2021As of March 31, 2022（Unit：million yen）4,497,9502,701,288256,238274,643547,36820,87425,124570,968218,620645,239128,63613,574383,892621,441504,04541,92675,470229,76554,930174,835561,562215,98122,493144,062180,4271,402630,612△234,163148,844－70,426180,9133,7345,128,563△4,610,1602,692,039260,131250,797547,79121,20322,537568,024226,268655,095130,08010,110416,994673,257538,83739,54494,874222,39936,262186,136605,469246,35226,623140,727193,1141,348732,189△261,660－177,827101,699195,9794,9775,342,350 △ – 2 – Liabilities　Non-current liabilities　　Bonds payable　　Long-term borrowings　　Retirement benefit liability　　Asset retirement obligations　　Deferred tax liabilities　　Other　Current liabilities　　Current portion of non-current liabilities　　Short-term borrowings　　Commercial papers　　Notes and accounts payable – trade　　Accrued taxes　　Other　Reserves under special laws　　Reserve for water shortage　Total liabilitiesNet assets　Shareholders’ equity　　Share capital　　Capital surplus　　Retained earnings　　Treasury shares　Accumulated other comprehensive income　　Valuation difference on available-for-sale securities　　Deferred gains or losses on hedges　　Foreign currency translation adjustment　　Remeasurements of defined benefit plans　Non-controlling interests　Total net assetsTotal liabilities and net assetsKyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 As of March 31, 2021As of March 31, 2022（Unit：million yen）3,390,3251,299,8981,645,06488,107278,0318,28070,9431,048,499427,272123,10840,00078,12538,025341,9668,2688,2684,447,093△646,239237,304120,007290,3811,4546,0683,7043,4955,1694,037△29,162681,4705,128,5633,582,9721,399,9991,737,26585,946289,10312,89957,7581,075,425399,638120,810－142,61419,798392,5647,6137,6134,666,012632,987237,304120,006277,3821,70612,509△4,1044,7231,3835,066△30,840676,3375,342,350 – 3 – （2） Consolidated Income Statements and Consolidated Comprehensive Income Statements (Consolidated Income Statements) Kyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 April 1,2020-March 31, 2021（Unit：million yen）April 1,2021-March 31, 2022Operating revenue　Electric utility operating revenue　Other business operating revenueOperating expenses　Electric utility operating expenses　Other business operating expensesOperating profitNon-operating income　Dividend income　Interest income　Share of profit of entities accounted for using equity method　OtherNon-operating expenses　Interest expenses　OtherTotal ordinary revenueTotal ordinary expensesOrdinary profitProvision or reversal of reserve for water shortage　Reversal of reserve for water shortageExtraordinary losses　Impairment losses　Loss on return of electric imbalance chargeProfit before income taxesIncome taxes – currentIncome taxes – deferredTotal income taxesProfitProfit attributable to non-controlling interestsProfit attributable to owners of parent1,521,9771,284,207237,7701,445,0831,197,247247,83676,89416,6331,6377869,8844,32438,34726,25812,0891,538,6111,483,43155,179572572－－－55,75213,3228,69022,01233,7391,90331,835△△1,743,3101,486,155257,1541,694,6851,452,544242,14148,62419,4321,4818297,6179,50435,67225,04310,6281,762,7431,730,35832,384654654△7,491△3,5363,95525,5468,8427,93516,7788,7681,8956,873 – 4 – (Consolidated Comprehensive Income Statements) ProfitOther comprehensive income　Valuation difference on available-for-sale securities　Deferred gains or losses on hedges　Foreign currency translation adjustment　Remeasurements of defined benefit plans, net of tax　Share of other comprehensive income of entities accounted for using equity method　Total other comprehensive incomeComprehensive incomeComprehensive income attributable to　Comprehensive income attributable to owners of parent　Comprehensive income attributable to non-controlling interestsKyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 April 1,2020-March 31, 2021（Unit：million yen）April 1,2021-March 31, 202233,7391,0643,47030223,8893528,691△62,43060,0702,3598,7681,1452643,1095331,5846,63715,40513,3142,091 – 5 – (3) Consolidated Statements of Changes in Shareholders’ Equity Previous consolidated fiscal year (April 1, 2020 to March 31, 2021) Kyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 Shareholders’ equityCapital stockCapital surplusRetained earningsTreasury shares(Unit：million yen)Total shareholders’equity237,304120,008276,9971,501632,808△945△945237,304120,008276,0511,501631,862△△△95617,505△31,835△95617,505△31,835－－－14,3294714,376237,304120,007290,381△1,454646,239Valuation difference onavailable-for-salesecuritiesDeferred gains orlosses on hedgesForeign currencytranslation adjustmentRemeasurements ofdefinedbenefit plansTotal accumulated othercomprehensive incomeNon-controllinginterestsTotal net assetsOther comprehensive income2,1157134,69720,29822,16627,316637,9572,1157134,69720,29822,16627,312△△△△△△△3 (Unit：million yen)949△637,00817,505△31,8359△561,5882,78124,33628,2351,84930,0851,5882,78124,33628,2351,84944,4613,7043,4954,0376,06829,162681,470 471△471△5,169△- 6 – Balance at beginning ofcurrent periodCumulative effects of changes inaccountingRestated balanceChanges during periodDividends of surplusProfit attributable to owners of parentPurchase of treasury sharesDisposal of treasury sharesNet changes in items other thanshareholders’ equityTotal changes during periodBalance at end of periodBalance at beginning ofcurrent periodCumulative effects of changes inaccountingRestated balanceChanges during periodDividends of surplusProfit attributable to owners of parentPurchase of treasury sharesDisposal of treasury sharesNet changes in items other thanshareholders’ equityTotal changes during periodBalance at end of period Current consolidated fiscal year (April 1, 2021 to March 31, 2022) Kyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 Balance at beginning ofcurrent periodCumulative effects of changes inaccountingRestated balanceChanges during periodDividends of surplusProfit attributable to owners of parentPurchase of treasury sharesDisposal of treasury sharesNet changes in items other thanshareholders’ equityTotal changes during periodBalance at end of periodBalance at beginning ofcurrent periodCumulative effects of changes inaccounting policiesRestated balanceChanges during periodDividends of surplusProfit attributable to owners of parentPurchase of treasury sharesDisposal of treasury sharesNet changes in items other thanshareholders’ equityTotal changes during periodBalance at end of periodShareholders’ equityCapital stockCapital surplusRetained earningsTreasury shares(Unit：million yen)Total shareholders’equity237,304120,007290,381△1,454646,239237,304120,007290,381△1,454646,239－△19,8726,873△19,8726,873△299△299－4746－－△12,999△251△13,251237,304120,006277,382△1,706632,987Other comprehensive incomeValuation difference onavailable-for-salesecuritiesDeferred gains orlosses on hedgesForeign currencytranslation adjustmentRemeasurements ofdefinedbenefit plansTotal accumulated othercomprehensive income(Unit：million yen)Non-controllinginterestsTotal net assets3,7043,495△5,1694,0376,06829,162681,4703,7043,495△5,1694,0376,06829,162681,470 －△19,8726,873△299464004001,2273,7851,0286,4411,6778,1191,2273,7851,0286,4411,677△5,1324,1044,723△1,3835,06612,50930,840676,337 – 7 – (4) Consolidated Statements of Cash Flows Cash flows from operating activities　Profit before income taxes　Depreciation　Impairment losses　Decommissioning costs of nuclear power units　Amortization of special account related to nuclear power decommissioning　Amortization of nuclear fuel　Loss on retirement of non-current assets　Increase (decrease) in retirement benefit liability　Increase (decrease) in reserve for water shortage　Interest and dividend income　Interest expenses　Share of loss (profit) of entities accounted for using equity method　Loss on return of electric imbalance charge　Decrease (increase) in trade receivables　Decrease (increase) in inventories　Increase (decrease) in trade payables　Decrease (increase) in accounts receivable – other　Increase/decrease in consumption taxes payable/consumption taxes refund receivable　Increase (decrease) in accrued expenses　Other, net　Subtotal　Interest and dividends received　Interest paid　Income taxes paid　Net cash provided by (used in) operating activitiesCash flows from investing activities　Purchase of non-current assets　Proceeds from contribution received for construction　Investments and loan advances　Proceeds from divestments and collection of loans receivable　Other, net　Net cash provided by (used in) investing activitiesKyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 （Unit：million yen）April 1,2020-March 31, 2021April 1,2021-March 31, 202255,752186,393－10,7371,60919,3556,1066505722,424△26,258△9,884－9,93812,626△12,8893,8049,569△6,561△24,409278,338△8,42225,9867,315△253,459△△351,76431,63827,46115,3911,608330,587△△△△25,546199,6433,53611,4312,38125,6507,1883,0026542,310△25,043△7,6173,955△30,07031,25266,05820,08070314,695△3,901285,539△12,21024,80615,131△257,811△△△△△318,06728,12826,8165,258△9,382320,879 △△ – 8 – Kyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 April 1,2020-March 31, 2021April 1,2021-March 31, 2022△△288,619195,000277,009205,3845,09652,00017,450△5,340△95,549△7218,350△205,485－65223,901△△259,162145,000280,196246,5472,29840,000△19,821△6,263△79,428△1,43017,790223,90163－241,756 Cash flows from financing activities　Proceeds from issuance of bonds　Redemption of bonds　Proceeds from long-term borrowings　Repayments of long-term borrowings　Net increase (decrease) in short-term borrowings　Net increase (decrease) in commercial papers　Dividends paid　Other, net　Net cash provided by (used in) financing activitiesEffect of exchange rate change on cash and cash equivalentsNet increase (decrease) in cash and cash equivalentsCash and cash equivalents at beginning of periodIncrease in cash and cash equivalents resulting from inclusion of subsidiaries in consolidationIncrease (decrease) in cash and cash equivalents resulting from merger of consolidated subsidiariesCash and cash equivalents at end of period – 9 – Kyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 (5) Notes on Consolidated Financial Statements (Note on the premise of going concern) N/A (Changes in accounting policies) (Application of “Accounting Standard for Revenue Recognition” etc.) We have applied the “Accounting Standard for Revenue Recognition” ,etc. from the beginning of the first quarter starting April 1st, 2021. Under this new standard, the “Renewable Energy Power Promotion Surcharge” and “Grant based on the Act on Purchase of Renewable Energy Sourced Electricity ”, which are related to the feed-in tariff system for renewable energy, are not recorded as net sales but are being deducted from corresponding operating expenses. The “Electricity Business Accounting Regulations” has been revised based on the new revenue recognition standard that was issued. (Note) Since there is no change in the handling of the meter-reading date standard in this revision, Kyushu Electric Power and Kyushu Electric Power Transmission & Distribution, which preferentially apply the Electricity Business Accounting Regulations, will continue to record revenues based on the meter-reading date standard. Comparisons and analyzes with the end of the previous fiscal year (end of FY2020) are based on the figures after retroactive application. Handling of the first year of application (FY2021) As a general rule, “Accounting Standard for Revenue Recognition”, etc. are to be applied retroactively to all past periods in the first year of application (the revised Electricity Business Accounting Regulations can also be applied retroactively). From the perspective of comparability of financial statements, Kyushu Electric Power applies retroactively as a general rule. Amount of retroactive application impact (FY2020) (Billion of Yen) After retroactive application Before retroactive application Difference Explanations Sales 1,521.9 2,131.7 -609.8 Ordinary profit Opening retained earnings 55.1 276.0 Renewable Energy Power Promotion Surcharge -194.5 Grant based on the Act on Purchase of Renewable Energy Sourced Electricity -414.3 -0.5 -0.9 Amount of retroactive application impact before FY2019 55.6 276.9 – 10 – Reportable segment Power and Retail businesses Transmission and Distribution businesses Other energy services businesses ICT services businesses Other businesses Kyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 (Segment information) (1) Overview of reportable segments The Group’s reportable segments are those for which financial information is available separately and regular evaluation by the Board of Directors is being performed in order to evaluate performance. The Group comprises five reportable segments, “Power and Retail businesses”, “Transmission and Distribution businesses”, “Other energy services businesses”, “ICT services businesses” and “Other businesses”, classified in consideration of the types of products and business activities. The main products and business activities belonging to each Reportable segment are described below. Power generation and retail business in Japan Main products and business activities Power transmission and distribution business in Kyushu Businesses that contribute to stable power supply, such as construction and maintenance of electrical equipment, Gas / LNG sales business, renewable energy business, overseas business Data communication business, optical broadband business, telecommunications construction and maintenance business, information system development business, data center business Real estate business, paid nursing home business (2) Calculation method of sales, profits, assets and other items by Reportable segment The accounting method of Reportable segment is similar to the Preparation of consolidated financial statements. Reportable segment is based on operating income basis, and Inter-segment sales are based on market price. (Application of “Accounting Standard for Revenue Recognition” etc.) As described in “Changes in accounting policies”, We have applied the “Accounting Standard for Revenue Recognition” ,etc. from the beginning of the first quarter starting April 1st, 2021. Under this new standard, the “Renewable Energy Power Promotion Surcharge” and “Grant based on the Act on Purchase of Renewable Energy Sourced Electricity ”, which are related to the feed-in tariff system for renewable energy, are not recorded as net sales but are being deducted from corresponding operating expenses. In accordance with these changes, the calculation methods for net sales, profit or loss, assets, and other items in reportable segments have been changed in the same manner, and segment information for the previous fiscal year has been retroactively applied to the figures. As a result of this change, segment sales for the previous consolidated fiscal year decreased by 568,683 million yen in the “Power and Retail businesses”, 40,014 million yen in the “Transmission and Distribution businesses”, 4,853 million yen in the “Other energy service business”, 2,038 million yen in “ICT services businesses”, and increased by 27 million yen in the “Other energy services businesses”, 5740 million yen in “Reconciliation”. In addition, segment income for the previous consolidated fiscal year decreased by 544 million in the “ICT services businesses”, and increased by 12 million yen in the “Other energy services businesses”, 27 million yen in “Other businesses”. Furthermore, segment asset for the previous consolidated fiscal year increased by 22 million yen in the “Other energy services businesses”, 1627 million yen in “ICT services businesses”, 91 million yen in “Other businesses”. – 11 – (3) Information regarding sales, profits, assets and other items by Reportable segment Previous consolidated fiscal year (April 1, 2020 to March 31, 2021) Kyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 *1 Reconciliations of Segment income (¥-1,641 million) and Segment assets(¥-1,731,296 million) are intersegment *2 Segment income is adjusted to reflect ordinary income in the consolidated statements of incomes. Current consolidated fiscal year (April 1, 2021 to March 31, 2022) (Unit: millions of Yen) Reportable segment(Unit: millions of Yen) ICT servicesbusinessesOtherbusinessesTotalReconciliation*1Consolidatedfinancialstatements*2Energy servicesJapanese electric powerPower andRetailbusinessesTransmissionandDistributionbusinessesOther energyservicesbusinesses1,208,657113,4741,322,131-564152,121407,154559,27529,10167,537112,937180,47517,645553,70979,71533,262112,9776,34713,94615,56729,5144,2911,521,977－1,521,977682,397-682,397－2,204,374-682,3971,521,97756,821-1,64155,1794,090,4211,879,200198,305138,2236,859,860-1,731,2965,128,563101,50268,00211,56323,1893,620207,878-2,128205,74910,49922,156－10,05524－6454,09410,27721877859209-23011,23136,70210,125-10,444-10,444-24178626,2589,884208,932108,02616,06321,1714,843359,037-3,143355,894Reportable segmentEnergy servicesJapanese electric powerPower andRetailbusinessesTransmissionandDistributionbusinessesOther energyservicesbusinessesICT servicesbusinessesOtherbusinessesTotalReconciliation*1Consolidatedfinancialstatements*21,382,809171,72878,38080,53912,0611,725,5198471,383,657132,1481,515,805-5,9357,652179,380418,963598,3437,1833,15681,536117,077198,61422,452611,77456581,10531,364112,4706,10517,7901,743,310715,2442,458,5555,56917,63115,69033,3216,103－－−-715,244-715,2441,725,51917,7901,743,310−1,743,31035,910-3,52532,3844,258,0871,924,633206,428150,3997,151,323-1,808,9735,342,350115,00871,79812,30224,0793,395226,583-1,289225,2939,72521,834－229,209－6853,2737,895316939261902210,46334,6777,957-9,634-9,634-34082925,0437,617155,422117,93411,46227,2625,814317,901-5,763312,138 SalesSales to outside customersInter-segment salesTotalSegment income(loss)Segment assetOther itemsDepreciation (including amortizationof nuclear fuel)Interest incomeInterest expensesShare of profit (loss) of entitiesaccounted for using equity methodIncrease in tangible fixed assets andintangible fixed assetstransaction eliminations. SalesRevenue from contracts withcustomersOther revenueSales to outside customersInter-segment salesTotalSegment income(loss)Segment assetOther itemsDepreciation (including amortizationof nuclear fuel)Interest incomeInterest expensesShare of profit (loss) of entitiesaccounted for using equity methodIncrease in tangible fixed assets andintangible fixed assetstransaction eliminations. *1 Reconciliations of Segment income (¥-3,525 million) and Segment assets (¥-1,808,973 million) are intersegment *2 Segment income is adjusted to reflect ordinary income in the consolidated statements of incomes. – 12 – Kyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 (Significant subsequent event) Reduction of Legal Retained Earnings https://www.kyuden.co.jp/english_company_news_2022_h220428c-1.html – 13 – Kyushu Electric Power Co., Inc. (9508) Financial Results Overview for FY2021 2. Others (1) Major effects of the Corona virus Consolidated Financial Results for FY2021 (Reference) Consolidated Financial Results for FY2020 Retail Ordinary profit -0.5 billion kWh -3.5 billion yen -2.0 billion kWh -21.0 billion yen (2) Difference from the forecast for the fiscal year 2021 This is to inform you that there is a difference between the consolidated financial results for the fiscal year ending March 2022 and the financial results forecast announced on January 31, 2022. ① Difference from the forecast for the fiscal year 2021（April 1, 2021 to March 31, 2022） Sales Operating income Ordinary income (Unit: million yen) (Unit: million yen) (Unit: million yen) Profit attributable to owners of parent (Unit: million yen) 1,700,000 70,000 50,000 25,000 Difference (B-A) Ratio (%) 2.5 1,743,310 43,310 48,624 -21,375 -30.5 32,384 -17,615 -35.2 6,873 -18,126 -72.5 1,521,977 76,894 55,179 31,835 62.86 EPS (Unit: yen) 48.41 10.09 － － Forecast previously announced Results (A) (B) (Reference) Results for FY2020 ② Reasons for difference In terms of the Financial Results for FY2021, the actual results differed from the previously announced forecast due to an increase in purchased power costs resulting from higher wholesale electricity market prices and the negative impact of the time lag from the fuel cost adjustment system, although there was an increase in the total amount of electricity sales volume. – 14 –