Hokkaido Electric Power Company,incorporated · TSE:9509
Hokkaido Electric Power Company,incorporated — FY2020 Earnings Presentation
47 slides from Hokkaido Electric Power Company,incorporated's earnings presentation, May 14, 2020
Slide 1: Financial Result for the Year Ended March 31, 2020
■Financial Result for the Year Ended March 31, 2020 May 14, 2020 Hokkaido Electric Power Co., Inc.
Slide 2: Table of Contents
■Table of Contents □Management Approach □Financial Results and Forecasts ・Gas Supply Business ...3 ・Operating Results and Financial Situation . . . 22 ・ Development of the HEPCO Group’s Total Solutions ...4 ・Consolidated Income and Expenditure (Comparison Table) . . . 23 ・ Renewable Energy-Based Pow
Slide 3: Management Approach
■Management Approach 2
Slide 4: Gas Supply Business
■Gas Supply Business Launch the Gas (LNG) Supply Business to Expand the Business Domain LNG supply business City gas retail business ◼ Aims at 10,000 tons per year through sales ◼ Conducts examinations for early launch in using tanker trucks FY2021 based on the startup wholesale system ・Provide “sol
Slide 5: Development of the HEPCO Group's Total Solutions
■Development of the HEPCO Group’s Total Solutions Skills and know-how possessed by Group companies + Develop the Group’s total solutions for New achievements made by expansion of the its sustainable growth business domain HEPCO Group’s total solutions for energy-related issues Generation and Energy
Slide 6: Renewable Energy-Based Power Generation (1)
■Renewable Energy-Based Power Generation (1) ◼ Solar power generation ◼ Overseas: Solar power generation plant in Mexico: HEPCO’s first investment in an overseas power plant Output: 290,000 kＷ (HEPCO’s share: 34,800 kW) Participation: From March 2020 - Analysis of on-site operation data in Hokkaido
Slide 7: Renewable Energy-Based Power Generation (2)
■ Renewable Energy-Based Power Generation (2) ◼ Wind power generation & biomass power generation plants ◼ Offshore wind power generation in Ishikari Bay: Signed a partnership agreement with Green Power Investment Corporation Construction will begin on a 100,000 kW bottom-mounted offshore wind power
Slide 8: Measures to Expand the Electricity Retail Business: High-Voltage and Extra High-Voltage Customers
■Measures to Expand the Electricity Retail Business: High-Voltage and Extra High-Voltage Customers サーモグラフィーを ◼ Make more visits to individual customers and propose an optimal pricing plan 活用した熱漏れ診断 to each of them in consideration of the operational status of their facilities ◼ Moreover, provide ene
Slide 9: Measures to Expand the Electricity Retail Business: Low-Voltage Customers (Households)
■Measures to Expand the Electricity Retail Business: Low-Voltage Customers (Households) ◼ Differentiation with value-added services ⇒ Provision of reward points and useful information on the portal site (“Hokuden Ene Mall”) ⇒ Conducting examinations for further service enhancement and expansion towa
Slide 10: Opening of the Fukushima Natural Gas Power Plant
■Opening of the Fukushima Natural Gas Power Plant: Selling Electricity outside Hokkaido ◼ Secure source generating around 100,000 kW of power outside Hokkaido ⇒Make maximum use of the source for electricity sales in the Tokyo metropolitan area ・Unit No. 1: Started commercial operation on Apr. 30, 20
Slide 11: Initiative for Early Restart of the Tomari Nuclear Power Station (1)
■Initiative for Early Restart of the Tomari Nuclear Power Station (1) Conformity Review (in and after 2019): Active Fault Assessment on the Premises ・We explained the on-site active fault assessment results to the Nuclear Regulation Authority (NRA). Feb. 22, 2019 ・The NRA pointed out that based on t
Slide 12: Initiative for Early Restart of the Tomari Nuclear Power Station (2)
■Initiative for Early Restart of the Tomari Nuclear Power Station (2) Reference: Results of the additional survey explained at the conformity review meeting held on Nov. 7, 2019 Marine sediment (Sand layer) Upper stratum Bedrock Excavation survey point (North side) Bedrock Fault F-1 excavation surve
Slide 13: Initiative for Early Restart of the Tomari Nuclear Power Station (3)
■Initiative for Early Restart of the Tomari Nuclear Power Station (3) Responses to Major Issues Revealed at the Conformity Review ◼ For the determination of the design basis earthquake ground motion and design basis tsunami, HEPCO has explained the results of the on-site active fault assessment to t
Slide 14: Cost Reduction: Drastic Measures for Higher Efficiency and Cost Reduction
■Cost Reduction: Drastic Measures for Higher Efficiency and Cost Reduction Under the Leadership of the Management Infrastructure Enhancement Promotion Committee (chaired by the president of HEPCO), implement drastic measures for greater management efficiency and cost reduction <Overall plan for cost
Slide 15: Building a competitive power source configuration
■Building a competitive power source configuration HEPCO aims to achieve a competitive energy mix that is balanced from the S+3E prospective by constructing new power sources as well as suspending or decommissioning operation of aging facilities. Stable operation of HEPCO’s power plants contributes
Slide 16: Measures Implemented by Hokkaido Electric Power Network, Inc.
■Measures Implemented by Hokkaido Electric Power Network, Inc. ◼ The company aims to ensure supply stability, win trust from local communities and achieve growth by value creation as its corporate vision, for which it will continue to maintain a stable supply of electricity with greater resilience a
Slide 17: Measures to Expand the Acceptance of Renewable Energy
■Measures to Expand the Acceptance of Renewable Energy While maintaining the quality of electricity supplied in Hokkaido, implement measures to expand the acceptance of renewable energy Acceptance of electricity generated by wind power and solar power stations Wind power and solar power generation:
Slide 18: Overview of the spin-off of the power transmission and distribution division after legal separation
■Overview of the spin-off of the power transmission and distribution division after legal separation ◼ 100% stake under a "business holding company" that conducts power generation and retail business from the perspective of demonstrating the comprehensive strength and efficiency of the Group on the
Slide 19: For the Creation of a Sustainable Society
■For the Creation of a Sustainable Society Measures to foster the use of renewable energy and reduce CO2 emissions ◼ To foster the use of renewable energy (local resources), we are implementing measures for wind power, solar power and biomass power generation in addition to hydroelectric power gener
Slide 20: Measures against the Novel Coronavirus for Business Continuity
■ Measures against the Novel Coronavirus for Business Continuity ◼ As an electric power company that provides people with a lifeline service, the entire HEPCO Group is committed to implementing infection prevention measures to ensure a stable power supply and for the safe use of electricity by peopl
Slide 21: Measures against the Novel Coronavirus: Hand in Hand with Local Residents
■Measures against the Novel Coronavirus: Hand in Hand with Local Residents ◼ Foster a range of measures to support the economy of Hokkaido and daily lives of customers and fight against the novel coronavirus in cooperation with local residents. <Measures to support local companies> ◼ In order to sup
Slide 22: Financial Results and Forecasts
■Financial Results and Forecasts 21
Slide 23: Business results/Financial status
■Business results/Financial status （Billion yen） Consolidated Non-consolidated April 1,2019 – April 1,2018 – April 1,2019 – April 1,2018 – Increase/ Increase/ March31, March31, Comparison March31, March31, Comparison Decrease Decrease 2020 2019 (A)/(B) % 2020 2019 (C)/(D) % (A)-(B) (C)-(D) (A) (B) (
Slide 24: Consolidated Statement of operations
■Consolidated－ Statement of operations （ Billion yen ） April 1 – March 31, April 1 - March 31, Increase/Decreas April 1, 2019 – 2020(A) 2019 (B) e (A)-(B) March 31, 2020 Operating Revenues 748.4 752.2 (3.7) 99.5 712.6 719.6 (6.9) 99.0 Revenue Ordinary Electricity utility operating revenue Other busi
Slide 25: Outline of Consolidated Financial Results
■Outline of Consolidated Financial Results Although the amount of electricity sold increased in the retail segment due to a Operating change to the meter-reading schedule for high-voltage customers, operating revenue revenue decreased by 3.7 billion yen to 748.4 billion yen year on year for reasons
Slide 26: Factors Involved in Change to Ordinary Profit (Year-on-Year Comparison); Non-consolidated
■Factors Involved in Change to Ordinary Profit (Year-on-Year Comparison); Non-consolidated (Unit: 100 million yen) Increase in fuel cost due to a decrease in the amount Decrease in the of hydroelectric power depreciation cost* ・Management infrastructure generation improvement cost for legal separati
Slide 27: Outlook for Consolidated Financial Performance for FY2021
■Outlook for Consolidated Financial Performance for FY2021 (Ending March 2021) <Outlook for consolidated financial performance for FY2021 (ending March 2021)> Following the full liberalization of the retail market, competition intensified as a range of new players entered the electricity retail spac
Slide 28: FY2020 Year-End Dividend
■ FY2020 Year-End Dividend (Ending March 2020) As for year-end dividend, the Board of Directors made a resolution to submit the proposal as detailed below to the 96th session of the ordinary meeting of shareholders to be held on June 25, 2020, in consideration of the FY2020 financial performance and
Slide 29: FY2021 Dividend Forecasts
■ FY2021 Dividend Forecasts The following shows the forecasts for mid-term and year-end dividends to be paid in FY2021, which we have made by comprehensively taking into consideration the medium- to long-term management environment and the income and expenditure situation. 【Cash Dividend per Share】
Slide 30: Financial results supplementary materials
■Financial results supplementary materials Non-consolidated Electricity sales Monthly Electricity sales Statement of Operations（Revenue） Power Supply Statement of Operations （Expenses and Income） Impact of Accrued Income Incurred by Fuel cost Adjustment System Expense breakdown (non-consolidated) Pe
Slide 31: Non-consolidated Electricity Sales
■Non-consolidated－Electricity Sales ・As for electricity sales in the retail market, sales of electricity for industrial use decreased but sales to high-voltage and extra high-voltage customers increased as a result of sales promotion in consideration of customer needs and due to the change to the me
Slide 32: Monthly Electricity sales
■ Monthly Electricity sales （GWh, ％） FY 2020 Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb.※ Mar. Total Residential 800 768 574 594 683 629 603 757 807 1,078 922 849 9,064 Low-voltage customers 193 124 87 90 111 96 92 130 224 365 324 270 2,105 Commercial and industrial Subtotal 993 892 661 6
Slide 33: Non-consolidated Statement of Operations (Revenue)
■ Non-consolidated －Statement of Operations（Revenue） （Billion yen） April 1,2019 April 1,2018 Increase/ Compariso – March 31, – March 31, 2020 2019 Decrease n Major cause of increase/decrease (A)-(B) (A)/(B)％ (A) (B) Operating 714.4 721.2 (6.8) 99.1 Revenue Residential 251.6 267.6 (16.0) 94.0 [Cause
Slide 34: Non-consolidated Results: Electricity Supply
■Non-consolidated Results: Electricity Supply We were able to maintain a stable supply by appropriately managing the supply equipment in response to an increase in the grid-connection amount of electricity generated from renewable energy sources during a time when all units at the Tomari power plant
Slide 35: Non-consolidated Statement of Operations (Expenses and Income)
■ Non-consolidated －Statement of Operations（Expenses and Income） （Billion yen） April 1,2019 – April 1,2018 – Increase / Comparison March 31, 2020 March 31, 2019 Decrease (A)/(B)％ Major cause of increase/decrease (A) (B) (A) - (B) Personnel 56.6 53.8 2.8 105.3 ・Increased in the cost of retirement ben
Slide 36: Impact of Accrued Income Incurred by Fuel Cost Adjustment System
■ Impact of Accrued Income Incurred by Fuel Cost Adjustment System 2018年度 限定的 FY2019 limited 2019年度 FY2020 差益30億円程度 Approx. 3.0 Billion yen 差益 Income 差損 Loss 差益 Income Fuel 燃料調達価格 procurement price (basis of fuel cost) （燃料費の諸元） 平均燃料価格 Average Fuel price (basis of fuel cost adjustment （燃料費調整額の諸元） cha
Slide 37: Expense breakdown (Non-consolidated)
■ Expense breakdown (Non-consolidated) Personnel （ Billion yen ） Increase/ April 1 –March April 1 – March Decrease Major factors for increase/decrease 31, 2020 (A) 31, 2019 (B) (A)-(B) ・Increased in the cost of retirement Personnel 56.6 53.8 2.8 benefits [2.8] 【Amortization of actuarial gains and lo
Slide 38: Expense breakdown (Non-consolidated): Fuel and Purchased Power
■ Expense breakdown (Non-consolidated) Fuel and Purchased Power （Billion yen） Increase/ April 1 – March April 1 – March Decrease Major factors for increase/decrease 31, 2020 (A) 31, 2019 (B) (A)-(B) [Cause of increase] Fuel and Purchased Power 274.9 283.5 (8.6) ・Increase in the renewable energy purc
Slide 39: Expense breakdown (Non-consolidated): Maintenance and Depreciation
■Expense breakdown (Non-consolidated) Maintenance （Billion yen） Increase/ April 1 – March April 1 – March Decrease Major factors for increase/decrease 31, 2020 (A) 31, 2019 (B) (A)-(B) Maintenance 79.9 71.7 8.2 ・Increase in the cost of dealing with Generation 40.6 34.6 6.0 aging equipment to ensure
Slide 40: Expense breakdown (non-consolidated): Interest and Other Expenses
■ Expense breakdown (non-consolidated) Interest Expenses （Billion yen） Increase/ April 1 – March 31, April 1 – March 31, Decrease Major factors for increase/decrease 2020 (A) 2019 (B) (A)-(B) [Interest(on 【0.77】 【0.84】 【(0.07)】 average)%] ・Decrease in the interest rate [(0.9)] Interest Expenses 11.1
Slide 41: Key Factors・Sensitivity Factors
■Key Factors・Sensitivity Factors Key Factors Increase/ April 1 – March 31, 2020 April 1 – March 31, 2019 Decrease (A) (B) (A)-(B) Foreign Exchange Rate (Yen/$) 109 111 (2) CIF Crude Oil Price ($/barrel) 67.8 72.2 (4.4) Water Flow Rate (%) 88.7 112.6 (23.9) Sensitivity Factors （Billion yen） Increase/
Slide 42: Balance Sheets (Consolidated/Non-consolidated)
■ Balance Sheets (Consolidated/Non-consolidated) （Billion yen） As of March 31, As of March 31, Increase/ Major factors for increase/decrease Decrease (non-consolidated) 2020(A) 2019(B) (A)-(B) Consolidated 1,959.0 1,954.9 4.0 ・Decrease in cash and deposits; [(16.7)] ・Decrease in property of Electric
Slide 43: Consolidated Statements of Comprehensive Income
■Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income （Billion yen） Increase/ April 1 – March 31, April 1 – March 31, Decrease 2020 (A) 2019 (B) (A)-(B) Profit 27.1 22.8 4.2 Other Comprehensive Income (2.8) (3.8) 1.0 Valuation difference on available-for-sa
Slide 44: Consolidated Statements of Cash Flow
■Consolidated Statements of Cash Flow （Billion yen） April 1 – March 31, April 1 – March 31, Increase/ 2020 (A) 2019 (B) Decrease (A)-(B) Cash flows from operating activities 102.6 113.8 (11.1) Profit before income taxes 33.4 24.8 8.5 Depreciation and amortization 75.4 90.1 (14.7) Cash flows from (12
Slide 45: Segment Information
■ Segment Information （Billion yen） Reportable segment Consolidated Other Total Adjustments total Electric April 1 – March 30, 2020 (A) 713.7 133.3 847.1 (98.7) 748.4 Operating April 1 – March Revenue 31, 2019 (B) 720.7 122.5 843.3 (91.1) 752.2 Increase/Decrease (A)-(B) (7.0) 10.8 3.8 (7.6) (3.7) Ap
Slide 46: Effect of the feed-in-tariff scheme for renewable energy
■ Financial Results - Effect of the feed-in-tariff scheme for renewable energy Those engaged in the power generation business using renewable energy sources ④ ③ Hokkaido Cost bearing Electric Power adjustment Company, Inc. organization ① ② Electricity customers Effect of the feed-in-tariff scheme fo
Slide 47: For further information
This material is compiled based on data available as of May 12, 2020. The company makes no guarantee as to the reliability and integrity of such information, as this is not intended to serve as disclosure material as stipulated by the Financial Instruments and Exchange Law of Japan. Projections conc
Hokkaido Electric Power — FY2020 Earnings Presentation on 6ix