Tokyo Gas Co., Ltd. · TSE:9531

Tokyo Gas — FY2020 Earnings Presentation

28 slides from Tokyo Gas's earnings presentation, Apr 28, 2021

  1. Slide 1: FY2020 Financial Results

    TSE:9531 FY2020 Financial Results ended March, 2021 April 28, 2021

  2. Slide 2: FY2020 Consolidated Financial Results

    01 FY2020 Consolidated Financial Results ended March, 2021 Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  3. Slide 3: Highlights: Sales Down, Profit Up

    FY2020 Consolidated Results (Apr. 1, 2020 – Mar. 31, 2021) vs. FY2019 3 Highlights: Sales Down, Profit Up (+/- indicate impact on profit, billion yen) Net sales -160.1 Decrease in city gas unit price due to resource costs adjustment, decrease in city gas sales volume, etc. Operating +136.4 The impac

  4. Slide 4: FY2020 Consolidated Gas Sales Volume / Number of Customers vs. FY2019

    FY2020 Consolidated Gas Sales Volume/ Number of Customers vs. FY2019 4 City Gas sales volume: Number of customers(City Gas), LNG sales volume,Average temperature （ Unit： mil. ㎥） 13,855 FY2020 FY2019 Change -865mil.㎥ (-6.2%) 14,000 Number of customers for including temperature effect 12,990 city gas

  5. Slide 5: FY2020 Consolidated Electricity Sales Volume / Number of Customers vs. FY2019

    FY2020 Consolidated Electricity Sales Volume/ Number of Customers vs. FY2019 5 Electricity sales volume： New electricity retail customers won by Tokyo Gas Cumulative (1,000s) （ Unit：mil. kWh ） Quarter (1,000s) 2,717 26,000 300 2,629 3,000 +4,157mil. kWh 24,761 2,522 2,457 (+20.2%) 24,000 250 2,350 2

  6. Slide 6: FY2020 Results: Sales and Operating Profit/Loss by Business Segments

    FY2020 Results : Sales and Operating Profit/Loss by Business Segments vs. FY2019 6 (unit : billion yen) Segment Profit(Operating profit Net sales + Equity income/loss of subsidiary) FY2020 FY2019 FY2020 FY2019 Results Results Change ％ Results Results Change ％ Gas 1,146.7 1,355.4 -208.7 -15.4 88.4 10

  7. Slide 7: FY2020 Results: Ordinary Profit Analysis

    FY2020 Results: Ordinary Profit Analysis  City Gas -¥2.2bn vs. FY2019 7 ・Decrease in gross margin -¥9.9bn: Change in sales volume, etc. -17.5 (incl. change due to temp effect +3.8), sliding time lag effect -12.0, third-party access revenue +14.1, etc. Gas (Net sales) -¥175.1bn: Change in volume -52

  8. Slide 8: Factors for Changes from FY2019

    Factors for Changes from FY2019 8 (+/- indicate impact on profit, billion yen) Forecast as of Forecast as of Forecast as of Result as of Item Main contents 1Q Impact*1 2Q Impact*2 3Q Impact*3 FY2020 Impact (-) Sliding time lag Sliding time (+) City gas temperature affect Approx. +22.0 Approx. +17.0

  9. Slide 9: Returns to Shareholders

    Returns to Shareholders 9 ◼In the Tokyo Gas Group FY 2020 - 2022 Medium-term Management Plan, regarding shareholder returns, Tokyo Gas presented a target total payout ratio of approximately 60% in each fiscal year up through FY2022, but Management Reform Initiatives of the Tokyo Gas Group in View of

  10. Slide 10: FY2021 Full Year Forecast

    02 FY2021 Full Year Forecast Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  11. Slide 11: Highlights: Sales UP, Profit UP

    FY2021 Consolidated Forecast (Apr. 1, 2021 – Mar. 31, 2022) vs. FY2020 11 Highlights: Sales UP, Profit UP (+/- indicate impact on profit, billion yen) vs. FY2020 Increase in sales from FY2020 consolidated subsidiary (upstream business in North America), Net sales +50.9 increase in rental income from

  12. Slide 12: FY2021 Forecast: Gas Sales Volume / Number of Customers vs. FY2020

    FY2021 Full Year Forecast Consolidated Gas Sales Volume/ Number of Customers vs. FY2020 12 City Gas sales volume: Number of customers(City Gas), LNG sales volume,Average temperature （ Unit： mil. ㎥） VS. FY2020 Results FY2020 15,000 -936mil.㎥ (-7.2%) Forecast Results Change including temperature effec

  13. Slide 13: FY2021 Forecast: Electricity Sales Volume / Number of Customers vs. FY2020

    FY2021 Full Year Forecast Consolidated Electricity Sales Volume/ Number of Customers vs. FY2020 13 Electricity sales volume： New electricity retail customers won by Tokyo Gas （ Unit：mil. kWh ） Cumulative (1,000s) VS. FY2020 Results 26,640 3,800 （As of Mar.2023 ） +1,879mil. kWh 25,000 4,000 (+7.6%) 3

  14. Slide 14: FY2021 Forecast: Sales and Operating Profit/Loss by Business Segments

    FY2021 Full Year Forecast: Sales and Operating Profit/Loss by Business Segments vs. FY2020 14 (unit : billion yen) Segment Profit(Operating profit Net sales + Equity income/loss of subsidiary) FY2021 FY2020 FY2021 FY2020 Forecast Results Change ％ Forecast Results Change ％ Gas 1,144.0 1,146.7 -2.7 -0

  15. Slide 15: FY2021 Forecast: Ordinary Profit Analysis

    FY2021 Forecast: Ordinary Profit Analysis vs. FY2020 15  City Gas -¥20.7bn ・Decrease in gross margin -¥16.2bn: Change in sales volume, etc.-11.3 (incl. change Gas due to temp effect +5.4), sliding time lag effect -4.9 (Net sales) -¥20.8bn: Change in volume, etc. -54.6, sliding time lag effect +33.9

  16. Slide 16: FY2021 Forecast: Factors for Changes from FY2020

    FY2021 Consolidated Forecast (Apr. 1, 2021 – Mar. 31, 2022) vs. FY2020 16 Factors for Changes from FY2020 Ordinary profit (+/- indicate impact on profit, billion yen) Approx. 20.0 Sliding time lag effect Easing of the increase in impact of the depreciation sharp rise in Cost structure JPEX prices Ap

  17. Slide 17: FY2021 Uses of Cash Flow (Capex, Investment and Financing)

    FY2021 Uses of Cash Flow（Capex , Investment and financing） 17 (Unit: billion yen) FY2020 Forecast Main Items Change ％ Results Capital Expenditure Production facilities : 10.4 (-0.7）Other Production facilities, etc. Gas 134.0 Distribution facilities : 87.2 (-13.5) New demand development, etc. 149.0 -

  18. Slide 18: Key Indicators (Consolidated)

    Key Indicators (Consolidated) 18 (Unit: billion yen) FY2021 FY2020 FY2019 Forecast Results Results Total assets (a) 2,865.0 2,738.3 2,539.9 Shareholders’ equity (b) 1,176.0 1,153.8 1,147.7 Shareholders’ equity ratio (b)/(a) 41.0% 42.1％ 45.2％ Interest-bearing debt (c) 1,242.0 1,065.9 905.0 D/E ratio

  19. Slide 19: Medium-term Management Plan Key Figures

    Medium-term Management Plan（ Announced: March 25, 2020）Key figures 19 (unit : billion yen) FY2020 Results FY2022 Target Operating profits +equity method income KGI (¥ billion) 79.1 140.0 ROE (％) 4.3％ Approx. 8.0％ Financial indicators ROA (％) 1.9％ Approx. 4.0％ D/E Ratio(times) 0.92 Approx. 0.9 No. of

  20. Slide 20: Reference Materials

    03 Reference Materials Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  21. Slide 21: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate

    Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate 21 Impact of rising JCC by $1/bbl Impact on earnings (Unit: billion yen) 1Q 2Q 3Q 4Q Full year 1Q -0.1 -0.5 +0.4 +0.3 +0.1 2Q ― -0.2 -0.7 +0.6 -0.3 Period 3Q ― ― -0.1 -0.9 -1.0 4Q ― ― ― -0.2 -0.2 Full year -0.1 -0.7 -0.4 -0.

  22. Slide 22: Crude Oil Price and Exchange Rate

    Crude oil price・Exchange rate vs. FY2019 Results 22 Crude oil price（Japan Crude Cocktail Prices） ($/bbl) 80.00 70.00 60.00 50.00 40.00 30.00 20.00 FY2020 FY2019 Exchange rate (¥/$) 115.0 110.0 105.0 100.0 FY2020 FY2019 Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  23. Slide 23: Key Topics in FY2020-21

    Key Topics in FY2020-21 (Excerpted from Press Releases up to 28th Apr.) 23 ・Management Reform Initiatives of the Tokyo Gas Group in View of the COVID-19 Pandemic (Nov.30) Management ・Notice of Transition to a Company with a Nominating Committee, etc. (Nov.30) Strategy ・Notice regarding Company Form

  24. Slide 24: Key Topics in FY2020-21

    Key Topics in FY2020-21(Excerpted from Press Releases up to 28th Apr.) 24 ◆ Engineering Solutions ・Establishment of Ekimachi Energy Create (Apr.7) ・Establishment of Ryukyu Energy Service LLC. (May 11)*2 ・Began verification of virtual power plants using Ene-Farm home fuel cells (Jun.1) ・Initiation of

  25. Slide 25: Key Topics in FY2020-21

    Key Topics in FY2020-21(Excerpted from Press Releases up to 28th Apr.) 25 ・Establishment of a Subsidiary in the United States and the Acquisition of a 500MW Solar Power Project(Jul.29) ・Tokyo Gas Acquires Oil and Gas Assets in Louisiana Through Castleton Resources and Takes Majority Interest in Cast

  26. Slide 26: Overseas Projects

    Overseas Projects 26 1 2 4 5 7 3 6 8 Area No Country Subject Main Business Participation year Barnett Upstream Shale gas 2013 Eagle Ford Upstream Shale gas 2016 East Texas Upstream Shale gas 2017 1 U.S.A TGES America Downstream Energy Service 2015 Birdsboro Power Plant Downstream Natural gas power 2

  27. Slide 27: Trends in city gas/electricity switching and number of customers

    Trends in city gas/electricity switching(published data), Number of customers for city gas retail sales(Tokyo gas consolidated) 27 Electricity switchers (based on applications) City gas switchers (based on applications) Monthly(1,000s) Cumulative(1,000s) Monthly(1,000s) Cumulative(1,000s) 500 25,000

  28. Slide 28: Cautionary Statement regarding Forward-looking Statements

    < 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 the future per

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