Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — Q3 FY2021 Earnings Presentation
25 slides from Tokyo Gas's earnings presentation, Jan 28, 2022
Slide 1: FY2021 3Q Financial Results
FY2021 3Q_ Financial Results ended December, 2021 January 28, 2022 "E TOKYO GAS TSE:9531
Slide 2: FY2021 Consolidated Financial Results
o1 FY2021 Consolidated Financial Results ended December, 2021 "ETOKYOGAS
Slide 3: Sales increased but profit decreased in 3Q FY2021
Sales increased but profit decreased in 3Q FY2021. Net sales increased by 12.4% to ¥1,387.5 billion. This was mainly attributable to an increase in city gas unit price due to resource cost adjustment in the gas segment. Operating expenses rose by 15.6% to ¥1,349.9 billion. This mainly reflected an i
Slide 4: City gas sales volume in 3Q FY2021 increased by 1.2%
The city gas sales volume in 3Q FY2021 increased by 1.2%. Although sales volume to residential customers decreased by 6.9% due to the temperature effect, such as high temperatures in April, sales volume to industrial customers increased by 10.4%. This was mainly attributable to the acquisition of po
Slide 5: Total electricity sales volume in 3Q increased by 13.2%
Total electricity sales volume in 3Q increased by 13.2%. Retail electricity sales rose by 7.5% due to an increase in the number of customers and changes in the accounting standard for revenue recognition. Wholesale and other electricity sales volumes rose by 17.1% owing to an increase in sales to po
Slide 6: Net sales and segment profit by segment
This slide shows net sales by segment and segment profit, which is operating profit plus equity income/loss of subsidiaries, and changes thereof. Segment profit was down 36.9% at ¥42.0 billion. Although the ¥19.4 billion increase in the overseas business segment boosted the overall profit, total seg
Slide 7: Main factors in segment profit changes
The ¥48.0 billion drop in profit of the gas segment mainly reflected a drop in gross margin due to the greater sliding time lag effect caused by resource price fluctuation and a rise in fixed costs due to an increase in depreciation. In the electric power segment, profit decreased by ¥3.2 billion du
Slide 8: FY2021 Full Year Forecast
02 FY2021 Full Year Forecast "ETOKYOGAS
Slide 9: FY2021 full-year forecast: increase in sales and profit
For the FY2021 full-year, we are forecasting an increase in both sales and profit. The economic framework for January onward, which serves as a basis of our forecast, has been changed as follows: crude oil price has been revised from $70/barrel to $75/barrel, foreign exchange rate has been changed f
Slide 10: City gas sales volume forecast revised upward
We are revising our forecast of city gas sales volume upward by 4.7%. The main factor for the increase is the expected increase in sales volume to industrial customers, such as due to a rise in operation at power generation customers. 10
Slide 11: Electricity sales volume forecast
This slide shows our electricity sales volume forecast. We are revising our forecast of electricity sales volume upward by 3.4%, mainly due to an increase in wholesale and other electricity sales volumes. 11
Slide 12: Segment sales and profit forecasts
This slide shows segment sales and profit forecasts and changes from the previous forecast. We are revising our forecast of segment profit upward by 6.0% to ¥109.9 billion. The ¥9.1 billion upward revision in the gas segment and the ¥5.5 billion upward revision in the overseas business segment are e
Slide 13: Main factors in segment profit forecast changes
I would like to explain the main factors of the changes in segment profit forecasts. The ¥9.1 billion upward revision in the profit of the gas segment is mainly attributable to an expected increase in the sliding time lag effect. Although the sliding time lag effect is expected deteriorate due to th
Slide 14: Comparison with FY2020 results
This slide shows comparisons with FY2020 results and the main factors for the changes. We expect segment profit to increase by 38.8% year on year to ¥109.9 billion. 14
Slide 15: Segment profit changes vs. FY2020
vs. F¥2020 Results © City Gas -¥5.8 bn Ga: + Increase in gross margin +¥6.0 bn: Change in volume, etc. -6.3 (inci. change dueto is + temp effect +0.4), sliding time lag effect+12.3 >| +¥1.2bn (Net sales) +¥183.9 bn: Change involume, etc. -6.1, sliding time lag effect +190.0 (+1.3%) (Resource costs,
Slide 16: Ordinary profit change factors from FY2020
This slide illustrates the profit change forecasts for the main factors for change from the FY2020 ordinary profit. 16
Slide 17: Expected use of cash flows in FY2021
This slide details the expected use of cash flows in FY2021. 17
Slide 18: Key indicators on a consolidated basis
This slide shows key indicators on a consolidated basis. 18
Slide 19: Reference materials
The following reference materials include a table on the sensitivity to the economic framework assumption, plus the trend of crude oil prices and the exchange rate, a list of major year-to-date press releases, and a list of major overseas investment projects, etc. 19
Slide 20: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate
Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate 20 BH Impact of rising JCC by $1/bbl Period 4Q Period 4Q Impact on earnings 4Q 0 Impact of depreciation by ¥1/$ : Impact on earnings 4Q -1.0 (Unit: billion yen) (Unit: billion yen) "FTOKYOGAS 20
Slide 21: Crude oil price and exchange rate trends
rude | price - Excl ge rate Crude oil price (Japan Crude Cocktail Prices) (s/bbl) 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 ef Ss > —e-FY2021 —e-FY2020 —e=FY2019 Exchange rate (W/s) 115.0 110.0 105.0 100.0 ~ we € 3 ‘ $ FF SF SF OS oF —e-FY2021 —e-FY2020 —e—FY2019 S$ 21m 21
Slide 22: Key Topics in FY2021
Key Topics in FY2021 (Excerpted from Press Releases up to 28th January.) 22 H + Notice regarding Partial Changes to Articles of Incorporation (Apr. 28) + Notice regarding Spin-off (Absorption-type Company Spit) (Apr. 28) + Notice regarding determination of matters concerning share acquisitions under
Slide 23: Key Topics in FY2021 (Services, Overseas)
Key Topics in FY2021 (Excerpted from Press Releases up to 28th January.) 23 H Services (induding ESG) © Others + Tokyo Gas launches rental managemert support service “Mamo ROOM” (Apr. 8) + Tokyo Gas launches house cleaning service (May 11) + Tokyo Gas launches electricity outage countermeasures with
Slide 24: Overseas Projects
Overseas Projects ° 900 e % ° Area No Country Subject Main Business Participation year Eagle Ford Upstream Shale gas 2016 TG Natural Resources Upstream Shale gas 2017 usa Tees America Downstream Energy Service 2015 e Birdsboro Power Plant Downstream Natural gas power 2017 North America ‘Aktina Downs
Slide 25: 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