As we enter the new era of competition, or the second period since our inauguration, we have formulated the Kansai Electric Group's Management Vision (Management Vision) in view of the drastically changing business climate. This document defines a vision that we will aspire to achieve in the 21st century. We will confidently carry out the steps necessary to realize this vision.

As a first step towards achieving this Management Vision, we have prepared the Management Plan for Fiscal 2005. This plan spells out the basic management strategies for our group and includes specific action plans. This Management Plan will allow us vigorously to implement our core strategies, which are based on an analysis of the current difficult business climate characterized by the progressive liberalization of our energy sector.

In accordance with the mid-term management policy, that is formulated in 2000, we are implementing a set of measures to improve the services we provide and streamline the entire spectrum of our operations. As we enter an age of radical change, including the expanded scope of the deregulation of the electricity market, we consider it crucial to restructure the strategies that we are implementing in order to meet long-term changes in the business environment, more clearly define and embody our corporate image, and ensure the sustainable growth of our entire group. We have therefore formulated our Management Vision in anticipation of the predicted business climate of around 2020. This vision defines our corporate goal as "No. 1 in customer satisfaction," sets the action guidance "I will do my best to keep customers satisfied," and reaffirms our group's determination to continue to change in order to accomplish its unchanging mission.

The Management Plan for Fiscal 2005, which is an action plan aimed at achieving the Management Vision, is based on our intention to continue developing our expertise together with the members of the society that we serve. In order to fulfill our company's corporate social responsibility (CSR) throughout all of our operations, the Management Plan lays down specific actions to be taken, including increased quality assurance activities in our nuclear power business, the establishment of the CSR promotion system and the publication of CSR reports. The Management Plan also focuses our group's efforts on the creation of customer value, the strengthening of our competitive position, and quality assurance, all of which will lay the groundwork for sustainable supremacy in competition. We intend to take the customer-first principle to new heights and to revolutionize ourselves all our activities based on the Kansai Electric Group's Management Vision and the Management Plan for Fiscal 2005.