Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — Q2 FY2024 Earnings Presentation
32 slides from Tokyo Gas's earnings presentation, Oct 30, 2024
Slide 1: FY2024 2Q Financial Results
FY2024 2Q Financial Results ended September, 2024 October 30, 2024 "TOKYO GAS TSE:9531
Slide 2: Business portfolio management and financial soundness toward 2030 vision
To realize our vision for 2030, we are aiming to maintain both financial soundness and growth investments by strengthening our business portfolio management. The middle section of the slide describes the progress made toward this aim. Currently at the midpoint of our Compass Transformation 23-25 med
Slide 3: Treasury share acquisition and dividend policy
Based on these ideas, we have decided to acquire up to 40 billion yen worth of treasury shares in FY2024 as a measure to improve capital efficiency and control equity capital. In addition to the acquisition of treasury shares based on the shareholder return policy, this will be implemented as a capi
Slide 4: Concept of balance sheet management
This slide shows the concept of balance sheet management. Needless to say, we believe that the essence of business management is to strive for the continuous enhancement of corporate value through both business strategy and capital policy. We are turning the balance sheet management cycle based on t
Slide 5: 2Q results and FY2024 forecast overview
Both sales and profits decreased in 2Q FY2024 on a year-on-year basis. The main factors for the profit decrease were the decrease in the city gas unit price due to resource cost adjustments and an increase in raw material costs in the Energy Solution segment as a result of the depreciation of the ye
Slide 6: Forecast versus previous forecast
reduced from the previous forecast, mainly due to the impact of lower gas prices in the U.S. The forecast for profit attributable to owners of parent remains unchanged from the previous forecast at 810 hundred million yen. 5
Slide 7: Consolidated Financial Results ended September 2024
O01 ) a FY2024 Consolidated Financial Results ended September, 2024 Note:The segment information disclosed for FY2024 and FY2023(excluding segment assets and ROA of FY2023)reflects new segment classifications that went into effect from FY2024 as a result of a restructuring of our subsidiary TOKYO GA
Slide 8: Both sales and profits decreased in 2Q FY2024
Both sales and profits decreased in 2Q FY2024. Net sales decreased by 513 hundred million yen, or 4.0%, to 12,214 hundred million yen. This was mainly due to a decrease in unit prices due to resource cost adjustments in the Energy Solution segment. Operating profit decreased by 915 hundred million y
Slide 9: Net sales and segment profit by segment
Slide 8 shows net sales by segment and segment profit, which is operating profit plus equity income of subsidiaries, and the changes thereof. Slide 9 shows the profit analysis for each segment. 8
Slide 10: Profit analysis by segment
The 736 hundred million yen decrease in profit of the Energy Solution segment mainly reflects a 600 hundred million yen decline due in part to a decrease in the sliding time lag effect, etc. in the city gas business and a 151 hundred million yen decrease due in part to fuel cost adjustments in the e
Slide 11: City gas sales volume
City gas sales volume until 2Q FY2024 increased by 0.4% to 5,150 million m 3, mainly due to an increase in demand from power generation customers despite a fall in demand from residential customers as a result of high temperatures. 10
Slide 12: Electricity sales volume
Total electricity sales volume until 2Q FY2024 decreased by 7.5% to 11,633 million kWh. Retail electricity sales volume rose by 6.8%, mainly due to higher demand owing to an increase in the number of customers, while the sales volume to wholesale and others fell by 22.6%. 11
Slide 13: FY2024 Full Year Forecast
FY2024 Full Year Forecast Note:The segment information disclosed for FY2024 and FY2023(excluding segment assets and ROA of FY2023)reflects new segment classifications that went into effect from FY2024 as a result of a restructuring of our subsidiary TOKYO GAS UNITED KINGDOM LTD. from the Energy solu
Slide 14: Medium-term management plan key figures and investment plans
This slide shows the status of the key figures and investment plans of our Medium-term Management plan, which covers the period from FY2023 to FY2025. 13
Slide 15: Segment ROA outlook for FY2024
This slide shows our segment ROA outlook for FY2024 compared to our previous outlook. 14
Slide 16: FY2024 full year forecast
For the FY2024 full year, we have raised our forecast for net sales, while our forecast for profit attributable to owners of parent remains unchanged. Our net sales forecast has been raised by 150 hundred million yen, or 0.6%, to 26,530 hundred million yen, mainly due to a rise in the sales forecast
Slide 17: Forecast for net sales and profit by segment
This slide shows our forecast for net sales and profit by segment and changes from the previous forecast. 16
Slide 18: Energy Solution segment profit forecast increase
The 199 hundred million yen increase in our profit forecast for the Energy Solution segment is mainly due to a rise in the gross margin forecast, owing in part to a higher forecast for the sliding time lag effect in city gas after reflecting the downward trend of crude oil prices. 17
Slide 19: Segment Information: Energy Solution
Segment Information: Energy solution 18 H Summary of Results (Unit: 100 million yen) Fy2028 breviovs Change % nares Change % Segment Assets 17,890 17,940 -50 -0.3 17,083 807 47 ROA (%) 68 57 1a 19.3 12.0 “5.2 43.3 Depreciation 758* 766* -8F “1.0 699 59 8.4 Total 1,053 1,113 60 5.4 688 365 53.0 Porti
Slide 20: City gas sales volume forecast
Our forecast for the overall city gas sales volume has been raised slightly by 0.6% from the previous forecast, reflecting an increase in the forecast for sales volumes to commercial and industrial customers, despite a reduction in the forecast for sales volumes to residential customers due to high
Slide 21: Electricity sales volume forecast
Our overall electricity sales volume forecast is roughly unchanged from the previous forecast, as we increased our forecast for sales volumes to retail customers mainly due to an increase in the customer count forecast and decreased our wholesale sale forecast. 20
Slide 22: Network segment profit forecast
Our forecast for segment profit of the Network segment is unchanged from the previous forecast. 21
Slide 23: Overseas segment profit forecast reduction
The reduction of 144 hundred million yen in the profit forecast for the Overseas segment mainly reflects a reduction in our sales forecast for the Shale gas business in North America due to lower gas prices. 22
Slide 24: Urban Development segment profit forecast
For the Urban Development segment, we have raised our profit forecast by 57 hundred million yen, reflecting an increase in our forecast for profit from the sale of real estate. 23
Slide 25: Changes in profit by major element
This slide illustrates the changes in profit for each major element of change from the previous fiscal year. 24
Slide 26: Appendix: sensitivities and capital cost initiatives
These include the economic frame sensitivity table, crude oil prices and exchange rates, and information on major overseas investments. The details and other specifics of our initiatives in “realizing management mindful of capital costs and stock prices” are also included here. 25
Slide 27: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate
Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate 26 BH Impact of rising JCC (Japan Crude Cocktail Prices) by $1/bbI (Unit: 100 million yen) Impact on earnings 3Q 4Q Full year 3Q -1 -12 -13 Period 4Q = -2 <2. Full year =i -14 -15 Impact of depreciation of the yen by ¥1/$ (U
Slide 28: Crude oil price - Exchange rate
Crude oil price - Exchange rate Crude oil price (Japan Crude Cocktail Prices) ($/bbl) 120.00 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 fe Se eo go £ oS menFY2024 meF¥2023 menF¥2022 ge F Sg Exchange rate (w/s) 160.0 155.0 150.0 145.0 140.0 135.0 130.0 125.0 120.0 Ff fF F SF e 5s O=F¥2024 ge F
Slide 29: Realizing management mindful of capital costs and stock prices: progress
stock prices 28 Bi Realizing management mindful of capital costs a [Progress of our actions] *PBR, PER, ROA and ROE of FY2024 as of September 30, 2024 <PBR - PER> <ROA - ROE> PAR Achieve PBR of more than one early and PER (96) oe move to a higher level ee a8 1.80 180 1.60 25.00 16.0 ue 20.00 a 1.20
Slide 30: Realizing management mindful of capital costs and stock prices: actions going forward
mind Realizing managem of capital costs and stock prices 29 BH [Actions going forward] + Because of factors such as the recovery of cash from divestments in Australia, we have determined that we will still retain sufficient capital even after making growth investments. + And we will acquire treasury
Slide 31: Overseas Projects
Overseas Projects 30 Area No Country Subject Eagle Ford TG Natural Resources TGES America ng OH WEA Beaters Longbow ‘ARM Energy Holdings © Mexico Bayi © Molaysia_ GASMALASIATBRGL 1992 YSI8__GAS MALASIA ENERGY ADVANCE Sdn.8hd. 2014 Bang bo Downstream Natural gas power 2016 @ thailand ~GWHAMT Downstre
Slide 32: Cautionary Statement regarding Forward-looking Statements
"F TOKYO GAS < Cautionary Statement regarding Forward-looking Statements > Statements made in this presentation with respect to Tokyo Gas’s present plans, forecasts, strategies and beliefs, and other statements herein that are not expressions of historical fact are forward-looking statements about t