Efficiency improvements in equipment maintenance, business operations, and materials and equipment costs

「Revenue in the Other business increased by ¥4.1 billion year on year to ¥34.6 billion, and segment profit was ¥2.6 billion in ordinary income, up ¥700 million year on year, mainly due to higher revenue in the construction business and ongoing cost reductions.」

「Ordinary profit increased by ¥6.885 billion, or 56.6%, from the previous consolidated fiscal year to ¥19.057 billion, due in part to higher net sales in the construction business and ongoing cost reductions.」

「Ordinary profit increased by ¥1.965 billion, or 55.4%, from the previous interim consolidated accounting period to ¥5.510 billion, due to factors including increased operating hours at hydroelectric power plants operated by subsidiaries, higher net sales in the construction business and ongoing cost reductions.」

「Under its Kaizen activities, the company will vigorously advance large-scale Kaizen projects expected to generate significant benefits and further roll out the activities to group companies, steadily building results toward a target of quadrupling productivity. For DX, it will prioritize projects with high returns on investment and those that enhance operations. Under the Procurement Review Committee, the construction management and materials and equipment procurement divisions are working together to promote upstream procurement activities, beginning with upstream processes where there is significant room for efficiency improvements, such as the construction planning stage, while pursuing measures to reduce procurement costs for materials and equipment.」

「For the nine months ended 31 December, net sales decreased by ¥8.842 billion, or 7.9%, year on year to ¥103.454 billion. Ordinary profit was ¥6.570 billion, roughly unchanged from the same period of the previous year, due in part to ongoing efforts to reduce costs in the construction business.」

「Under its Kaizen activities, the company will launch several initiatives with a significant impact on revenue growth or cost reductions as executive-designated projects, incorporating the perspective of top management, and will advance them steadily. For DX, it will prioritize projects with high returns on investment and those that enhance operations. The Procurement Review Committee is also pursuing measures such as reducing procurement costs for materials and equipment.」

「Ordinary income and loss resulted in a loss of ¥31,590 million, a decrease of ¥44,680 million from the same quarter of the previous year, due to higher electricity procurement costs resulting from rising fuel and market prices, despite efforts to further improve management efficiency.」

「Ordinary income and loss resulted in a loss of ¥1,070 million, a decrease of ¥23,773 million from the same quarter of the previous year, as a result of efforts to further improve management efficiency despite higher electricity procurement costs due to rising fuel and market prices.」

「Since introducing Kaizen activities in 2018, the Hokkaido Electric Power Group has rolled out more than 2,000 projects across the group. It will steadily advance projects such as large-scale construction work at power plants and high-volume standardized operations, where Kaizen activities are expected to have a significant impact, to achieve further efficiency improvements and cost reductions. In February 2022, the company also obtained DX certification under the certification system established by the Ministry of Economy, Trade and Industry.」

「Meanwhile, ordinary expenses decreased by ¥27,715 million, or 5.3%, from the same quarter of the previous year on a consolidated cumulative basis to ¥490,952 million. As a result, ordinary income increased by ¥13,110 million, or 165.4%, to ¥21,034 million. This was due to efforts to reduce costs through lower repair expenses for power generation facilities and more efficient procurement of fuel, equipment, and materials, despite factors such as lower electricity sales volume resulting from the impact of COVID-19.」

「This was due to efforts to reduce costs through more efficient procurement of fuel and materials and equipment, in addition to lower repair costs, including periodic inspection costs for power generation facilities, and lower property taxes, despite a decline in electricity sales volumes due in part to the impact of COVID-19.」

「In response to the changes in the internal and external operating environment described above, the company decided to improve the precision of its risk management for the proper maintenance and operation of its assets, including power generation and transmission and distribution facilities, while using new knowledge and technologies to advance efficient facility maintenance and ensure a stable supply of electricity over the long term.」

「The company will further advance its existing initiatives by using new technologies to improve and enhance the efficiency of facility maintenance and reduce facility-related costs, while also pursuing fundamental efficiency improvements and cost reductions based on the progress of the Kaizen activities introduced last December.」

「This was attributable to further efficiency improvements and cost reductions, including lower procurement costs for materials and equipment and reviews of construction schedules through the efforts of the Management Foundation Strengthening Promotion Committee and through creative initiatives.」

「Meanwhile, operating expenses decreased by ¥3.495 billion, or 2.2%, year on year to ¥156.810 billion. This was due to lower fuel costs resulting from a decline in electricity sales volumes and high water levels, as well as lower repair costs for thermal power generation facilities, despite higher fuel prices, under the company’s ongoing efforts to achieve thorough efficiency improvements across its operations.」

「The Hokkaido Electric Power Group will work as one to pursue fundamental efficiency improvements and cost reductions, thereby establishing a competitive business structure.」

「On the expense side, repair costs declined due in part to the lower number of thermal power plants undergoing periodic inspections, under the company’s ongoing efforts to achieve thorough efficiency improvements across its operations. However, due to higher fuel prices, increased fuel costs caused by low water levels, and the impact of the feed-in tariff scheme for renewable energy, operating expenses increased by ¥16.311 billion year on year to ¥485.425 billion.」

「On the expense side, under continued efforts to achieve thorough efficiency improvements across the business, repair expenses decreased due in part to a reduction in the number of thermal power plants undergoing periodic inspections. However, operating expenses increased by ¥16,624 million from the same quarter of the previous year on a consolidated cumulative basis to ¥317,319 million, owing to higher fuel costs resulting from rising fuel prices and drought, as well as the impact of the renewable energy feed-in tariff scheme.」

「On the expense side, although the company continued to pursue thorough efficiency improvements across the business, operating expenses increased by ¥14,092 million from the same quarter of the previous year on a consolidated cumulative basis to ¥160,305 million, due mainly to higher fuel costs resulting from rising fuel prices and the reversal of the previous year's abundant water supplies.」

「On the expense side, although repair expenses increased due to the impact of the renewable energy feed-in tariff scheme and an increase in the number of thermal power plants undergoing periodic inspections, operating expenses decreased by ¥3,113 million, or 0.5%, from the previous consolidated fiscal year to ¥652,002 million. This was due to lower fuel costs resulting from lower fuel prices and reduced electricity sales volume, as well as continued efforts to achieve thorough efficiency improvements across the business.」

「In addition to lower fuel costs resulting from lower fuel prices and abundant water supplies, continued efforts to achieve thorough efficiency improvements across the business resulted in operating expenses of ¥469,114 million, broadly in line with the same quarter of the previous year on a consolidated cumulative basis.」

「In addition to lower fuel costs resulting from lower fuel prices and abundant water supplies, continued efforts to achieve thorough efficiency improvements across the business reduced operating expenses by ¥4,128 million from the same quarter of the previous year on a consolidated cumulative basis to ¥300,694 million.」

「On the expense side, operating expenses decreased by ¥6,669 million from the same quarter of the previous year on a consolidated cumulative basis to ¥146,212 million, owing to lower fuel costs resulting from lower fuel prices and continued efforts to achieve thorough efficiency improvements across the business.」

「The company will continue to pursue management efficiency improvements, including rational and efficient facility maintenance and improvements to business operating methods that are not constrained by conventional thinking, as well as further reductions in equipment and materials costs.」