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Planning Group(IR)
Office of
Financing & Accounting
Kansai Electric Power Co., Inc.
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II.	The Business Climate -- Five Trends


To define the direction for our group, we have identified the following five trends in anticipation of the 2020 business climate.

1.The Emergence of a Mature Society and Expanding Consumer Needs

· A mature society in which people pursue qualitative affluence will take shape.
· Against the background of diversifying value systems and an aging society, consumer needs will become increasingly sophisticated and greatly expanded, while the value of "security" in terms of individual's livelihoods will increase.
· As a lifestyle- and culturally-advanced region, the Kansai area will take the lead in these movements.

2.A Changing Energy Market

· Slowing economic growth and a declining birthrate will lead to modest increases in energy demand.
· Competition will become the norm, and entrance into cooperative markets that challenge the traditional market frameworks will accelerate.

3.The Emergence of a Recycling-Oriented Society

· Increased importance will be attached to a concern for the environment in terms of consumer behavior and corporate activities, and the shift to a sustainable recycling-oriented society will accelerate.
· Nuclear power will acquire greater importance as a clean energy source, and the potential of hydrogen and other next-generation energy sources will grow.

4.The Advent of a Ubiquitous Network Society

· A ubiquitous network society will emerge that will offer everyone access to high-speed information and communication networks anywhere and anytime.
· High value-added services that combine energy with information technology will be extensively used and expanded.

5.Growing Expectations for Business Enterprisesf Roles in Society

· There will be growing expectations for the social roles that business enterprises must assume. These roles go beyond the traditional economic roles.
· The importance of business enterprises to fulfill their responsibilities to comply with rules and regulations and ensure the transparency of their activities as members of society will be increasingly highlighted.

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KEPCO --- THE KANSAI ELECTRIC POWER CO., INC.
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