Chubu Electric Power Company,incorporated · TSE:9502
Chubu Electric Power Company,incorporated — Q3 FY2015 Earnings Presentation
59 slides from Chubu Electric Power Company,incorporated's earnings presentation, February 2016
Slide 1: Presentation Materials for Investors 3rd Quarter FY 2015
P Presentation t ti Materials M t i l for f Investors I t 3rd Quarter Q t FY 2015 February 2016 February, . Note: The Company's fiscal year (FY) is from April 1 to March 31of the following year. FY2015 represents the fiscal year begun on April 1, 2015, and ending in March 31, 2016. 3rd Quarter (3Q)
Slide 2: Table of Contents
Table of Contents I Outline of Financial Results for Nine-Months Ended December 31, 2015 Summary of Financial Results <1> 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 1 Summary of Financial Results <2> 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 2 Electricity Sales Volume 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 3 Generated and Received Power 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 4 Consolidated Financial Standing 䞉䞉䞉䞉䞉䞉䞉
Slide 3: Outline of Financial Results for Nine-Months Ended December 31, 2015
I Outline of Financial Results for Nine-Months Ended December 31,, 2015 . © 2016 Chubu Electric Power Co., Inc. All rights reserved
Slide 4: Summary of Financial Results <1>
Summary of Financial Results <1> 㻥1 -Operating revenues decreased following 3Q of FY 2009, for the first time in 6 years. -Ordinary income increased for two consecutive years since 3Q of FY2014. -We recorded decreased sales and increased profit following 3Q of FY 2009, for the first time in 6 years.
Slide 5: Summary of Financial Results <2>
Summary of Financial Results <2> 㻥 2 <Consolidated ordinary income> On electric power business, consolidated ordinary income increased 195.1 billion yen compared with the 2014/3Q, due to accrued income incurred by fuel cost adjustment system and decrease in fuel cost, affected by the fall of fuel pr
Slide 6: Electricity Sales Volume
Electricity Sales Volume 3 <Demand from customers under regulation> -Electric lighting Dropped by 1.6% to 22.5TWh, compared with FY 2014/3Q, due to a decrease in air conditioning demand by warmer temperature in this winter and customer’s power saving effect. -Electric p power Dropped pp by y 2.7% to
Slide 7: Generated and Received Power
Generated and Received Power 4 -Hydro Thanks to higher water flow, hydro power output increased by 0.8 TWh. (flow rate for 2015/3Q:114.4%, 2014/3Q:101.2%) -Interchanged, I t h d purchased h dP Power Increased I dbby 22.5 5 TWh TWh, due d to an iincrease in i purchase h off renewable energy. -Thermal
Slide 8: Consolidated Financial Standing
Consolidated Financial Standing 5 -Assets A Decreased D db by 176 176.8 8 billi billion yen from f the h endd off FY2014 FY2014, bbecause off a reduction d i iin short-term h i investments due to a decrease in negotiable certificate of deposit. -Liabilities Decreased by 301.0 billion yen from the en
Slide 9: Summary of Forecast for FY2015
Summary of Forecast for FY2015 12 6 13 [Consolidated] (Billion yen) FY2015 Forecast FY2015 Forecast Change (Current) (Oct. 30) (A) (B) (A-B) Operating O i revenue 22,870.0 870 0 22,890.0 890 0 (20.0) (20 0) Operating income 260.0 230.0 30.0 Ordinary income 230.0 200.0 30.0 Net income attributable to
Slide 10: Non-consolidated Forecast for FY 2015 (compared to FY 2014)
Non-consolidated Forecast for FY 2015 (compared to FY 2014) 127 (Billion yen) FY 2015 FY 2014 Change Forecast Result (A) (B) (A) (B) (A)-(B) Operating revenues 2,660.0 2,899.0 approx. (239.0) Operating income 250.0 90.8 approx. 159.0 Ordinay income 220.0 41.9 approx. 178.0 Net income 150.0 27.3 appr
Slide 11: (Reference) Impact of accrued income (loss) by fuel cost adjustment system in FY2015
䠄Reference䠅Impact of accrued income (loss) incurred by fuel 㻞㻝 8 cost adjustment system in FY2015 䚽Announcement in October 30 䚽Current 䠄135 billion yen䠅 䠄155 billion yen䠅 Average Fuel price Average Fuel price (basis of fuel cost adjustment charge) (basis of fuel cost adjustment charge) Standard fuel
Slide 12: The Policy on Shareholder Return
The Policy on Shareholder Return 9 - Dividend Forecast -The Company will work to maintain stable dividends after taking account of financial condition and other factors, while continuously investing in building and operating facilities that are essential for a safe and pp y of electricity. stable su
Slide 13: Management Situation
Management g Situation . © 2016 Chubu Electric Power Co., Inc. All rights reserved
Slide 14: Development of high efficiency Thermal Power Plants
Development of high efficiency Thermal Power Plants㻝㻡10 - Outline of development of high efficiency thermal power plants -Operation Schedule for High-Efficiency (FY) Combined-Cycle Power Generation Systems 2013 2014 2015 2016 2017 2018 䞉䞉䞉䞉䞉䞉 2021 Nishi-Nagoya Thermal Taketoyo Thermal Power Power Pl
Slide 15: TEPCO and Chubu Electric Comprehensive Alliance <1>: Establishment of JERA
TEPCO and Chubu Electric to form Comprehensive Alliance<1>: Establishment of JERA Co., Inc. 11 - Tokyo Electric Power Company, Incorporated (hereinafter, “TEPCO”) and Chubu Electric established “JERA Co., Inc.” effective from April 30, 2015, as a new company that implements “a comprehensive alliance
Slide 16: TEPCO and Chubu Electric Comprehensive Alliance <2>: Scope
TEPCO and Chubu Electric to form Comprehensive Alliance <2>: Scope of Comprehensive Alliance 12 Overseas power 䠘Scope of Comprehensive Alliance䠚 generation Gas wholesaling Energy LNG supply infrastructure Thermal power generation (Existing) Receipt and PCO Fuel Transportation storage 42 GW Upstream
Slide 17: Sales strategy toward full liberalization of retail power market
Sales strategy toward full liberalization of retail power market13 -Toward the scheduled full liberalization of the retail p power market in April p 2016,, we will continue to deploy p y 䇾New services for customers using the company䇻s electricity,䇿 䇾Business expansion in the Tokyo metropolitan area,
Slide 18: Power generation & Sales in the Tokyo metropolitan area
14 Power generation & Sales in the Tokyo metropolitan area 㻢 -In the Tokyo y metropolitan p area,, we will strengthen g our sales system y and secure power p sources in order to aggressively expand our business since the area has a large market size and is an extremely attractive market with high gr
Slide 19: Hamaoka Nuclear Power Station <1>: Further effort for Safety Enhancement Measures
Hamaoka Nuclear Power Station <1>: 15 Further effort for Safetyy Enhancement Measures -Roadmap for Safety enhancement measures Th works The k for f safety f t enhancement h t measures related l t d to t Units U it 4 andd 3 are anticipated ti i t d to t be b completed l t d in i September 2016 and Se
Slide 20: Hamaoka Nuclear Power Station <2>: Review of Compliance with New Regulatory Standards
Hamaoka Nuclear Power Station <2>: 16 Current Situation about Review of Compliance with New Regulatory Standards As to Unit No.4, the application form for Change in reactor establishment permission that we submitted has been reviewed by the Nuclear Regulation Authority in two separate categories (ma
Slide 21: Reference Data
Reference Data . © 2016 Chubu Electric Power Co., Inc. All rights reserved
Slide 22: Electricity System Reform <1>: Schedule of the Electricity System Reform
Electricity System Reform <1> : 17 Schedule of the Electricityy System y Reform - Schedule of the Electricity System Reform schedule for implementing the schedule for enacted/submitting the bill measures 1st phase: Establishing the Organization for Nationwide Established on April 1, 2015 Enacted on
Slide 23: (Reference) Revision of the Gas Business Act
(Reference) Revision of the Gas Business Act 18 -Revision of the Gas Business Act scheduled for implementing scheduled for enacted the bill the measures Fully Liberalizing the gas retail market into In 2017 which retail entities are able to enter Enacted on June 17, 2015 Legal unbundling of the gas
Slide 24: Electricity System Reform <2>: Smart Meter
Electricity System Reform<2> : Smart Meter 19 㻝㻡 䕔 The introduction schedule of smart meters - Installation of smart meters has already been completed for our special high-voltage and high-voltage (500 kW and above) customers. - In the case of other high-voltage (less than 500kW) customers, we began
Slide 25: Electricity Supply & Demand <1>: Outlook for Winter FY 2015
Electricity Supply & Demand <1>: 20 Outlook for Winter FY 2015 (February) ŠPeak load (three-day average) -We estimate the peak load at 22,570MW taking account of change from the results for winter FY 2014, such as energy gy conservation effect, weather effect and upward p economyy effect, etc. *The
Slide 26: Electricity Supply & Demand <2>: Strengthen Mutual Support among Power Companies
Electricity Supply & Demand <2>: 䠍 Strengthen Mutual Support among Power Companies 21 䕔 Reinforcement of the FC (Frequency Converter) Hokkaido-Honshu To Hokkaido 600MW - To reinforce 900MW FC capacity by FY 2020 (from To Tohoku 600MW 1,200MW to 2,100 MW) . (to reinforce 300MW - Furthermore, to incre
Slide 27: Electricity Supply & Demand <3>: Composition of Power Sources and Output
Electricity Supply & Demand <3>: 22 Composition p of Power Sources and Electric Power Output p - Composition of Power Sources ᲢGWᲣ 0 5 10 15 20 25 30 35 40 FY2010 12% 13% 41% 15% 19% FY2011 41% 12% 13% 15% 19% FY2012 11% 12% 43% 15% 19% FY2013 11% 13% 45% 12% 19% FY2014 Ƃ37᳁Wƃ 11% 12% 46% 12% 19% N
Slide 28: Electricity Supply & Demand <4>: Trend of Large Industrial Power
Electricity Supply & Demand <4>: 㻥 23 Trend of Large Industrial Power -Dropped 0.3% , compared with 3Q of FY2014, due to a decrease of production in the automobile industry, y etc. -Sales Volume of Large Industrial Power FY2015 <3Q> year-on-year year on year change Ɔ%Ƈ Electricityy sales component p
Slide 29: TEPCO and Chubu Electric Comprehensive Alliance: Business Vision
TEPCO and Chubu Electric to form Comprehensive Alliance: Business Vision 24 -Based on the Comprehensive Alliance, we expect to create profitable opportunities by expanding of business area. -In I addition, ddi i we expect to improve i competitiveness ii by b optimizing i i i the h supply l chain h i
Slide 30: Fuel Procurement <1>: Acquisition of Interests in Energy Resources
Fuel Procurement<1> 25 Acquisition of Interests in Energy Resources - Acquisition of upstream interests, etc.ೌ Cordova Embayment ႩƷӕࢽཞඞƳƲ] Ichthys (Shale gas) (LNG) Project output capacity: Approx 3.5 million ton/year in LNG Project output capacity: (planned value) Approx 8.9 million ton/year Intere
Slide 31: Fuel Procurement <2>: LNG Ship Charter
Fuel Procurement<2>: LNG Ship Charter 26 39 ŠLNG Ship Charter - Based on the FOB contract, we concluded eight contracts of LNG ship charter to enhance efficiency and flexibility of procurement by managing freight charge. October 1,2015, JERA succeeded to stocks of ship owners. 1st Ship (Seishu-maru)
Slide 32: Fuel Procurement <3>: Advancement of Coal Trading
Fuel Procurement<3>: Advancement of Coal Trading 27 -Chubu Electric and Electricite de France’s subsidiary EDFT each established 100% subsidiaries in Japan and started fuel trading business under partnership agreement in FY2008. -Effective in April, 2010, Chubu Energy Trading controls Chubu Eclectic
Slide 33: Fuel Procurement <4>: Outlook for Fuel Procurement in FY2015
Fuel Procurement<4>:Outlook for Fuel Procurement in FY2015 28 - Outlook for fuel procurement (LNG) - After the suspension of all the units of Hamaoka Nuclear Power Station, the Company has increased the utilization of thermal power plants, mostly LNG, to compensate for the loss of power output by nu
Slide 34: Fuel Procurement <5>: LNG Contracts
Fuel Procurement<5>: LNG Contracts 29 - Principal LNG Contracts (1,000 t/year) Contract volume Projects / <delivery> Period of contract (approximate figure) Q Qatar1 / <Ex-ship> p 1997 - 2021 ((approx.25 pp years) y ) 4,000 , Australia (extension) / <Ex-ship> 2009 - 2016 (approx.7 years) 500 Austral
Slide 35: Fuel Procurement <6>: Results of FY2014
Fuel Procurement<6> Results of FY2014 30 Others 3.2 Canada Russia 1.8 R ssia Russia 47 4.7 3.3 (%) Africa 10 5 10.5 Australia LNG Coal 11.4 Qatar Australia Indonesia (13 485mil t) (13.485mil.t) 55.0 43 0 43.0 Ტ10 552mil tᲣ Ტ10.552mil.tᲣ 51 9 51.9 Asia 15.2 Vietnam 19.3 Crude oil Ტ228,000klᲣ Indonesi
Slide 36: Reinforcement Plan for LNG Handling Facilities
Reinforcement Plan for LNG Handling Facilities 㻝㻢 31 - Supporting stable yet flexible LNG procurement 䐣Installation of new gas pipeline 䐟Additional LNG tanks & reinforcement to LNG 䐠 s o oof ggass 䐠Installation receiving dock Shin-Nagoya pipeline across Ise Bay 䐢Installation of ( for Toho Gas Co.) N
Slide 37: Overseas Business Deployment
Overseas Business Deployment 32 - Outline of overseas business Investment amount Output based on Chubu's stake* (approximate) At the end of January 2016 Cumulative total 120 billion yen Cumulative total 3,290 MW * represents t Chubu's Ch b ' stake t k in i total t t l output t t off whole h l projec
Slide 38: (Reference) Overseas IPP projects area of TEPCO and Chubu Electric
(Reference)Overseas IPP projects area of TEPCO and Chubu Electric 33 - We can expect complementary relationship because we have overseas IPP projects in different area. TEPCO Chubu Electric Region g Countryy Output Output Project Project (MW) (MW) Aquisition of Tenaska's interest in gas thermal IPP(
Slide 39: Sales Strategy <1>: New Tariff Menu
Sales StrategyᲶ1ᲸᲴNew Tariff Menu 34 -We We will w create c ea e attractive a ac ve anda d competitive co pe ve services, se v ces, deliver de ve valuable va uab e services se v ces worth wo more o e than a thee price p ce (including ( c ud g safe, sa e, stable, and affordable energy services) to me
Slide 40: Sales Strategy <2>: Chubu Electric and INPEX Joint Power Supply Business
Sales Strategy䠘2䠚䠖 35 Chubu Electric and INPEX Enter Agreement g on Joint Power Supply pp y Business Chubu Electric and INPEX have entered a heads of agreement to consider a joint business operation to supply electricity, and they roll out a joint plan on the supply of electricity to city gas compan
Slide 41: Sales Strategy <3>: Evolve into a Total Service Corporation
Sales Strategy <3>:Evolve into a Total Service Corporation 36 㻢 - Supplying S l i Gas, G LNG and d On-Site O Sit E Energy Collaborating with C Energy fully acquired, the Chubu Electric Group continues to offer energy services that combine gas, LNG and on-site energy to business customers. We support
Slide 42: The New Regulatory Standards <1>: Outline
The New Regulatory Standards<1>: 37 Outline of "the New Regulatory g y Standards" Compared to the former safety standards, the new regulatory standards have been strengthen the standards to prevent a severe accident, and newly added the standards to cope with a severe accident or a terrorist attack.
Slide 43: The New Regulatory Standards <2>: Influence of 40-years regulation
The New Regulatory Standards<2>: Influence of 40-years regulation 38 < Article 43, Paragraph 3, Item 32 of the Law for the Regulations of Nuclear Source Material, Nuclear Fuel Material and Reactors> - The h operation i period i d off a power reactor shall h ll be b 40 years from f the h start off op
Slide 44: Hamaoka Nuclear Power Station <1>: Submission of Applications for Review
Hamaoka Nuclear Power Station <1>Ჴ 39 Submission of Applications for Review of Compliance with New Regulatory Standards -On February 14, 2014 , the company has submitted application document for change in reactor establishment permission, an application document for approval of construction plans, a
Slide 45: Hamaoka Nuclear Power Station <2>: Earthquake countermeasures
Hamaoka Nuclear Power Station <2>: 40 [Design basis measures] Earthquake countermeasures - Taking into consideration elements of uncertainty, we have conducted an evaluation of seismic ground motion in relation to inland crustal earthquakes, interplate earthquakes and oceanic intraplate earthquakes,
Slide 46: Hamaoka Nuclear Power Station <3>: Tsunami countermeasures
Hamaoka Nuclear Power Station <3>: 41 [Design basis measures] Tsunami-counter Tsunami counter measures - We have conducted surveys and studies on factors causing huge tsunami, regarding interplate earthquakes, oceanic intraplate earthquakes, earthquakes crustal earthquakes produced by active faults,
Slide 47: Hamaoka Nuclear Power Station <4>: Seawater inflow at Reactor No.5
Hamaoka Nuclear Power Station <4>: 42 Seawater inflow via damaged tubes in the main condenser for Hamaoka Reactor No.5 Fact - On May 14, 2011, when preparing for cold shutdown after reactor No. 5 was suspended, a portion of the tubes in the main condenser,, through g which seawater flowed to cool st
Slide 48: Hamaoka Nuclear Power Station <5>: Enhancing anti-disaster measures
Hamaoka Nuclear Power Station <5>:Enhancing anti-disaster measures 43 -Our anti-disaster measures -In order to prevent abnormal radioactive emissions in the event of an incident at the nuclear power station and to suppress and mitigate the impact in the event of such emissions, we are establishing t
Slide 49: Hamaoka Nuclear Power Station <6>: Activities to gain public understanding
Hamaoka Nuclear Power Station <6>: 44 Activities to g gain public p understanding g - On the Hamaoka Nuclear Power Station, we have been steadily promoting further safety measures including facilities measures and disaster prevention measures together with gaining public understanding as a package.
Slide 50: Hamaoka Nuclear Power Station <7>: Location and Regional Area
Hamaoka Nuclear Power Station <7>: 45 Overview of the Hamaoka Nuclear Power Station Location and Regional Area 50Hz (TEPCO'ss supply area) (TEPCO 䕦 Mt.Fuji Shizuoka 60Hz (CEPCO's supply area) Suruga Kakegawa Bay Enshu-nada sea Kikugawa Makinohara . We have signed safety agreement with i h Shizuoka S
Slide 51: Renewable Energy <1>: Feed-in Tariff Scheme
Renewable Energy <1>䠖Feed-in Tariff Scheme 46 - Basic framework of feed-in tariff scheme for renewable energy Purchase Electric Supply Power Punrchased power Equivalent to the purchased costs of renewable energy sourced Company Electricity sales revenues Equivalent to the surcharge for Operators p o
Slide 52: Renewable Energy <2>: Our efforts toward Promotion
47 Renewable Energy <2>Our efforts toward Promotion 㻝㻡 ᲢReference 1)Development locations of hydroelectric power station Conventional hydro Generation with minimum water level Chubu Electric (Reference)Chubu Electric Group Parentheses denote the commercial operation start year. Nyuukawa ᳕C-Tech Corp
Slide 53: Renewable Energy <3>: Application volume for connection
Renewable Energy <3>: 48 㻝㻡 The situation of application volume associated with connection - Total electric volume of interconnected inverters plus application volume for connection to renewable energy generation facilities as of the end of November was approximately 8,980MW. In our service area, gi
Slide 54: Efforts toward Promotion of Management Efficiency
Efforts toward Promotion of Management Efficiency 49 -FY2015 saw a certain degree of progress in deepening the improvement in managerial efficiency. Even when excluding the impact of accrued income(loss) incurred by the fuel cost adjustment system, we are y to secure pprofit levels that exceed the p
Slide 55: Fund Raising
Fund Raising 50 -We raised total approximately 1,500 billion yen in long-term funding for 3 years since the shutdown of Hamaoka Nuclear Power Station. -We plan to raise approximately 200 billion yen in long long-term term funding in FY 2015. -We have raised approximately 70 billion yen by the end of
Slide 56: Cash Flow (Non-consolidated)
Cash Flow (Non-consolidated) 51 (Billion yen) 800.0 Cash Flows from Operating Cash Activities Flows from Operating Activities 608 9 608.9 Cash Flows from Investing Cash Activities Flows from Investingg Activities 563.4 600.0 548.6 556.9 523.6 FCF 522.2 424.1 420.1 443.2 402.6 400 0 400.0 426.0 333.8
Slide 57: Electric utility operating expenses (Non-consolidated)
Electric utility operating expenses(Non-consolidated) 52 (Billion Yen) 3,000.0 2,709.7 2,638.2 (6%) 2,457.1 (7%) 2,500.0 2,297.3 (7%) Salaries and 2,136.8 (9%) employee 2,037.3 1,982.9 benefits (9%) 2,000.0 (7%) (49%) 1,861.3 1,863.7 Fuel (12%) (50%) 1,739.5 (7%) (13%) (49%) (11%) (45%) 1,500.0 (41%
Slide 58: Financial Ratio, Credit Ratings
Financial Ratio, Credit Ratings 53 - Shareholders’ equity ratio - Debt - equity ratio 䠄Times䠅 35% 5 Non-Consolidated Non-Consolidated Consolidated Consolidated 30% 26.1 26 1ᲟᲟ 4 (Non-Consolidasted) 25% 20% 23.5Ჟ 3 2.6 Times (Consolidated) ᲢNon-ConsolidatedᲣ 15% 2 2.1 Times . 10% ᲢConsolidatedᲣ Ტ Უ 1
Slide 59: DISCLAIMER
DISCLAIMER This presentation Thi t ti contains t i assumptions ti andd forward-looking f d l ki statements t t t with ith respect to the financial conditions, and forecasts of the company, which are based on information currently available. These assumptions involve certain risks and uncertainties,
Chubu Electric Power — Q3 FY2015 Earnings Presentation on 6ix