Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — Q2 FY2022 Earnings Presentation
31 slides from Tokyo Gas's earnings presentation, Oct 27, 2022
Slide 1: FY2022 2Q Financial Results
Lf FY2022 2Q Financial Results ended September, 2022 October 27, 2022 "E TOKYO GAS TSE:9531
Slide 2: FY2022 Consolidated Financial Results
o1 FY2022 Consolidated Financial Results ended September, 2022 Note: Figures for the fiscal year ended March 31, 2022, represent figures after retroactive application and restatement following a change in accounting policies and changes in presentation, respectively. "ETOKYO GAS
Slide 3: Both sales and profit increased in 2Q FY2022
Both sales and profit increased in 2Q FY2022 compared to the corresponding period of the previous year. Net sales increased by ¥494.5 billion. This was mainly attributable to an increase in city gas unit price due to resource cost adjustments in the Energy Solution segment. Operating expenses rose b
Slide 4: City gas sales volume increased by 4.1%
The city gas sales volume in 2Q FY2022 increased by 4.1% overall, thanks mainly to an increase in sales to power generation customers, an increase in demand by commercial customers for air conditioning due to a high temperature effect this summer as compared to temperatures in the same period of the
Slide 5: Total electricity sales volume increased by 28.5%
Total electricity sales volume in 2Q FY2022 increased by 28.5%. Retail electricity sales rose by 9.4% due to an increase in the number of customers, while the wholesale and other electricity sales volume grew by 39.9% due to a rise in demand by wholesale customers. 5
Slide 6: Net sales and 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. 6
Slide 7: Segment profit changes: Energy Solution, Network, Overseas
The ¥19.9 billion increase in profit of the Energy Solution segment and the Network segment combined mainly reflected a rise in the gross margin of city gas due to a sliding time lag effect. The electricity business within the segment saw a decrease in profit due in part to a drop in gross margin ca
Slide 8: Year-on-year changes under previous segment classification
For your reference, this slide shows year-on-year changes in segment net sales and profits under the previous segment classification before the segment changes in April 2022. 8
Slide 9: FY2022 Full Year Forecast
02 FY2022 Full Year Forecast Note: Figures for the fiscal year ended March 31, 2022, represent figures after retroactive application and restatement following a change in accounting policies and changes in presentation, respectively. "ETOKYO GAS
Slide 10: Full-year forecast compared with previous forecast
The following is an explanation of the full-year forecast for FY2022 in comparison with the previous forecast. For the FY2022 full-year, our forecast for both net sales and profit has been upgraded. The economic framework for October onward, which serves as a basis of our forecast, has been changed
Slide 11: Gas sales volume forecast increased by 1.2%
Our forecast of gas sales volume has increased by 1.2% from our previous forecast. This mainly reflects an expected increase in operation of power generation customers. 11
Slide 12: Electricity sales volume forecast increased by 0.2%
Our forecast of electricity sales volume has increased by 0.2% from our previous forecast, mainly reflecting an expected increase in retail sales volume. 12
Slide 13: Segment sales and profit forecasts
This slide shows segment sales and profit forecasts and changes from the previous forecasts. The major profit forecast changes for each segment are explained in the next slide. 13
Slide 14: Revisions to segment profit forecasts
For the Energy Solution segment, we have revised our profit forecast downward by ¥4.1 billion. This mainly reflects an expected drop in gross margin due to the impact of a rise in JEPX prices in the electricity business. For the Overseas segment, we have revised our profit forecast upward by ¥16.0 b
Slide 15: Comparison of new forecasts with previous year's actuals
Slides 15, 16, and 17 show comparisons between our new full-year forecasts and the actual performance of the previous year. 15
Slide 16: FY2022 Forecast: Ordinary Profit Analysis vs. FY2021
F a : < = vs. FY2021 { New Segments ] FY2022 Forecast: Ordinary Profit Analysis Results 16 FY202 ¥160. Obn Change +¥23.6bn +17.2' FY2021 (results} ¥136.4bn Segment profit +¥24.5bn (+18.6%) £ *« S o rc 3 © Increase in city gas gross margin +¥20.7 bn Change in volume, etc. -1.7 (incl. change due to te
Slide 17: FY2022 Consolidated Forecast: Factors for Changes in Ordinary Profit
FY2022 Consolidated Forecast (Apr. 1, 2022 - Mar. 31, 2023) 1 7 BH Factors for Changes from FY2021 Ordinary profit _ 37.8 “ ‘ 200 180 160 140 120 100 80 60 40 20 FY2021 FY2022 Results Forecast (etore etrosctwe adjustments), Copyright® TOKYO GAS Co., Ltd. All Rights Reserved. "STOKYOGAS
Slide 18: Expected use of cash flows in FY2022
This slide details the expected use of cash flows in FY2022. 18
Slide 19: Key indicators on a consolidated basis
This slide shows key indicators on a consolidated basis. 19
Slide 20: Reference materials
The following reference materials include a table on the sensitivity to the economic framework assumption, the trend of crude oil prices and exchange rates, key topics in 2Q FY2022, and a list of major overseas investment projects, etc. 20
Slide 21: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate
Gas Gross Margin Sensitivity to je in Crude Oil Price and Impact of rising JCC (Japan Crude Cocktail Prices) by $1/bbl Exch (Unit: billion yen) Impact on earnings 3Q 4Q 3Q -0.1 -1.0 Period 4Q - -0.1 Full year -0.1 ied Impact of depreciation of the yen by ¥1/$ Full year -1-1 -0.1 -1.2 Impact on earni
Slide 22: Crude oil price and exchange rate
rude oil price - Exc! ge rate Crude oil price (Japan Crude Cocktail Prices) (S/bbl) 120.00 110.00 —_— OO 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 ef & SF SS —e-FY2022 —e-FY2021 —e=F¥2020 Exchange rate (Ws) 145.0 140.0 135.0 130.0 125.0 120.0 115.0 aan 110.0 105.0 100.0 . fF KF SF SF OF
Slide 23: Key Topics in FY2022 by 2Q (Excerpted from Press Releases)
Key Topics in FY2022 by 2Q (Excerpted from Press Releases) (1) Business & financial topics o hasan imcenaete | Launch of Non-FIT/FIP renewable energy balancing service (Apr.18) Number of electric power contracts reaches 3 million (Apr.22) Tohoku Bio Food Recycle plant begins full-scale power generat
Slide 24: Nonfinancial ESG topics
= op 0 D O erpted O Pre Re (2) Nonfinancial ESG topics <5 2rrelcsse: ssves by topo ces Engineering Soltions Major related materiality Transition to a holdings group structure @ Governance & compliance Selection as an implementer of NEDO Green Innovation Fund Projects: Development of Technology for P
Slide 25: Key Topics in FY2022 by 2Q (Excerpted from Press Releases)
Key Topics in FY2022 by 2Q (Excerpted from Press Releases) Conclusion of Basic Agreement on efforts to streamline infrastructure business and solve community (@ Establishment of relationships challenges by Eight Private Business Operators with infrastructure management functions in Ibaraki with comm
Slide 26: Key Topics: Comprehensive agreements with municipalities
Key Topics in FY2022 by 2Q (Excerpted from Press Releases) 268 Ee reetad topi Esteblisbsnertt; of re’ ips with commu climate change, safety & disaster preparedness In its Compass 2030 Group Business Vision, Tokyo Gas sets out its goal to achieve net zero CO; emissions across all group businesses, in
Slide 27: Key Topics: Hadano City agreements
Key Topics in FY2022 by 2Q (1) Signing of Comprehensive Agreement: Hadano City, Hadano Gas and Tokyo Gas (Nov. 22, 2021) (2) Agreement on Joint Verification of Solar PPA Business: Hadano City, Hadano Gas and Tokyo Gas (Dec. 24, 2021) (3) Hadano City joins CNL Buyers Alliance, starts using carbon-neu
Slide 28: Yaesu Smart Energy Project
Key Topics in FY2022 by 2Q (Excerpted from Press Releases) 28 BH relationships with communities, climate change, fety & disaster preparedness Aug. 1, 2022 release Mitsuifudosan TG Smart Energy Co,. Ltd.*? completed construction of Yaesu Energy Center on July 31, 2022. Yaesu Smart Energy Project gets
Slide 29: Overseas Projects
Overseas Projects 29 ° e Seo S G 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 ~ Birdsboro Power Plant Downstream Natural gas power 2017 North America Aktin
Slide 30: Changes in Disclosable Segments
Changes in Disclosable Segments (mapping of key changes) 30 Hl + In accordance with our approach to accounting management, we changed our classifications for legally disclosable segments in order to better align them with management practices under the holdings-type group structure instituted in FY2
Slide 31: 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