Chubu Electric Power Company,incorporated · TSE:9502

Chubu Electric Power Company,incorporated — Q1 FY2017 Earnings Presentation

51 slides from Chubu Electric Power Company,incorporated's earnings presentation, August 2017

  1. Slide 1: Presentation Materials for Investors 1st Quarter FY2017

    Presentation Materials for Investors 1st Quarter FY2017 August, 2017

  2. Slide 2: Index

    INDEX 01 Outline of Financial Results for Three-Months Ended June 30, 2017 03 Management Situation Summary of Financial Results ҩҩҩҩ01 Mid-term Target toward the Achievement of Electrical Energy Sold ҩҩҩҩ04 ‟What We Aim For“ (Initiatives for Management Issues) ҩҩҩҩ19 Electric Power Supplied Developm

  3. Slide 3: Outline of Financial Results for Three-Months Ended June 30, 2017

    01 Outline of Financial Results for Three-Months Ended June 30, 2017 Note: The company’s fiscal year (FY) is from April 1 to March 31 of the following year. FY2017 represents the fiscal year begun on April 1, 2017, and ended on March 31, 2018. 1st Quarter(1Q) represents three months period ended Jun

  4. Slide 4: Summary of Financial Results <1>

    01 Summary of Financial Results <1> „ Operating revenues (consolidated and non-consolidated) increased following 2015/1Q, for the first time in 2 years. „ Ordinary income (consolidated and non-consolidated) decreased for 2 consecutive years since 2016/1Q. „ We recorded increased sales and decreased

  5. Slide 5: Summary of Financial Results <2>

    02 Summary of Financial Results <2> <Consolidated Operating Revenues> „ Operating revenues increased by 24.2 billion yen compared with 2016/1Q, mainly due to a increase in surcharge and grant based on Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Elec

  6. Slide 6: Summary of Financial Results <3>

    03 Summary of Financial Results <3> <Consolidated Ordinary Income> „ Consolidated ordinary income decreased by 64.2billion yen compared with 2016/1Q, mainly due to a conversion of income incurred by fuel cost adjustment system time lag into loss. [Factors contributing to change in consolidated ordin

  7. Slide 7: Electrical Energy Sold

    04 Electrical Energy Sold <Electrical Energy Sold> 凑 Amounted to 28.3TWh, almost the same as in 2016/1Q, mainly due to a sales increase in the Tokyo metropolitan area and an increase in air conditioning demand by lower temperature in this early spring, in spite of effect of switches made to other op

  8. Slide 8: Electric Power Supplied

    05 Electric Power Supplied <Electric Power Supplied> „ Hydro : The flow rate fell short of 2016/1Q ; thus hydroelectric power output decreased by 0.3TWh. „ Interchanged, purchased power : Increased by 0.6TWh, mainly due to an increase in purchase of renewable energy. „ Thermal : As a result above, t

  9. Slide 9: (Reference) Impact of Accrued Income Incurred by Fuel Cost Adjustment System (Result)

    06 (Reference) Impact of Accrued Income Incurred by Fuel Cost Adjustment System (Result) <FY2016/1Q> Income 50.0 billion <FY2017/1Q> Loss -13.0 billion Fuel procurement price (basis of fuel cost) Average Fuel price (basis of fuel cost adjustment charge) 2016/4 2016/10 2017/4 2017/10 2018/4 Copyright

  10. Slide 10: Summary of Forecast for FY2017 <1>

    07 Summary of Forecast for FY2017 <1> <Forecast> Forecasts of financial results have not been revised from the previous announcement made in April 28, 2017. „ Forecast of consolidated and non-consolidated financial results have not been revised as it is expected to be about the same as the previous

  11. Slide 11: Summary of Forecast for FY2017 <2>

    08 Summary of Forecast for FY2017 <2> [Principal figures] (TWh,%) Current April 28 Change (Electrical energy sold) (A) (B) (A-B) (A-B)/B Low voltage 37.7 37.7 - - High voltage / Extra-high voltage 81.6 81.6 - - Total 119.3 119.3 - - (Other principal figures) Current April 28 CIF price: crude oil ($/

  12. Slide 12: (Reference) Impact of Accrued Income Incurred by Fuel Cost Adjustment System in FY2017 (Forecast)

    (Reference) 09 Impact of Accrued Income Incurred by Fuel Cost Adjustment System in FY2017 (Forecast) ٛFY2016ٜ ٛFY2017ٜ Income Loss 6.0 billion -15.0 billion Fuel procurement price (basis of fuel cost) Average Fuel price (basis of fuel cost adjustment charge) 2016/4 2016/10 2017/4 2017/10 2018/4 Copy

  13. Slide 13: Reference Data(1): Financial Results

    02 Reference Data(1): Financial Results Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

  14. Slide 14: Consolidated Statements of Income

    10 Consolidated Statements of Income (Rounded down to nearest 100 million yen.) (Billion yen,%) 2017/1Q 2016/1Q Change (A) (B) (A-B) (A-B)/B Operating revenues 655.4 631.1 24.2 3.8 Non-operating revenues 5.0 3.6 1.3 35.8 Ordinary revenues 660.4 634.8 25.5 4.0 Operating expenses 623.4 534.2 89.2 16.7

  15. Slide 15: Non-consolidated Statements of Income <1>: Operating Revenues

    11 Non-consolidated Statements of Income <1>: Operating Revenues (Rounded down to nearest 100 million yen.) (Billion yen,%) 2017/1Q 2016/1Q Change 岧Major factors for change岨 (A) (B) (A-B) (A-B)/B Electricity sales revenues 490.7 495.5 (4.7) (1.0) 凑 A decrease in fuel cost adjustment charge Sold powe

  16. Slide 16: Non-consolidated Statements of Income <2>: Operating Expenses

    12 Non-consolidated Statements of Income <2>: Operating Expenses (Rounded down to nearest 100 million yen.) (Billion yen,%) 2017/1Q 2016/1Q Change 岧Major factors for change岨 (A) (B) (A-B) (A-B)/B Salaries and employee benefits 44.4 44.0 0.3 0.8 凑 An increase in fuel price Fuel 153.6 120.3 33.2 27.6

  17. Slide 17: Non-consolidated Statements of Income <3>: Net Income

    13 Non-consolidated Statements of Income <3>: Net Income (Rounded down to nearest 100 million yen.) (Billion yen,%) 岧Major factors for change岨 2017/1Q 2016/1Q Change (A) (B) (A-B) (A-B)/B Operating income 28.8 93.9 (65.1) (69.3) 凑 Electricity business : -60.9 凑 Incidental business : -4.2 Non-operati

  18. Slide 18: Consolidated and Non-consolidated Financial Standing

    14 Consolidated and Non-consolidated Financial Standing (Rounded down to nearest 100 million yen.) (Billion yen) 2017.6 2017.3 Change (A) (B) (A-B) 5,387.5 5,412.3 (24.7) Assets <4,918.4> <4,956.5> <(38.1)> 3,636.8 3,687.5 (50.7) Liabilities <3,487.5> <3,535.9> <(48.3)> 1,750.6 1,724.7 25.9 Net asse

  19. Slide 19: Electricity Business Operating Expenses (Non-consolidated)

    15 Electricity Business Operating Expenses (Non-consolidated) ‫ق‬Billion yen‫ك‬ Salaries and employee benefits Fuel Purchased power Maintenance Depreciation Other 3,000.0 2,709.7 2,638.2 (6%) 2,457.1 (7%) 2,500.0 2,297.3 (7%) 2,317.3 2,231.7 2,136.8 (9%) (8%) 2,037.3 1,982.9 (8%) 2,000.0 (9%) (7%) 1

  20. Slide 20: Cash Flow (Consolidated)

    16 Cash Flow (Consolidated) ‫ق‬%LOOLRQ\HQ‫ك‬ Cash Flows from Operating Activities Cash Flows from Investing Activities FCF 800.0 600.0 562.4 539.1 471.9 449.7 476.8 400.0 358.8 335.0 254.4 227.6 194.0 200.0 113.6 176.8 203.7 296.7 199.2 143.7 0.0 (25.1) (70.2) (102.9) (62.8) (200.0) (215.1) (272.7)

  21. Slide 21: Fund Raising

    17 Fund Raising „ We raised total approximately 1,500 billion yen in long-term funding for 3 years since the shutdown of Hamaoka Nuclear Power Station. „ We raised 390 billion yen in long-term funding in FY2016. „ We plan to raise approximately 400 billion yen in long-term funding in FY2017. (billio

  22. Slide 22: Financial Ratio, Credit Ratings

    18 Financial Ratio, Credit Ratings [Shareholders’ equity ratio] [Debt-Equity ratio] Times 35.0 3.0 Non-Consolidated Consolidated Non-Consolidated Consolidated 30.0 31.1% 2.5 (Consolidated) 25.0 2.0 1.9 Times 20.0 (Non-Consolidated) 28.7% 1.5 15.0 (Non-Consolidated) 1.0 10.0 1.6 Times 0.5 (Consolidat

  23. Slide 23: Management Situation

    03 Management Situation Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

  24. Slide 24: Mid-term Target toward the Achievement of "What We Aim For"

    Mid-term Target toward the Achievement of ‟What We Aim For” 19 (Initiatives for Management Issues) Chubu electric 凑 As a leading company that provides services that exceed expectations to Power Group customers ahead of our competitors, we will aim to become a ‟total “What We Aim For ” energy service

  25. Slide 25: Development of High Efficiency Thermal Power Plants

    㻝㻡 20 Development of High Efficiency Thermal Power Plants [Outline of development of Nishi-Nagoya (Reference) Development schedule Thermal Power Plant Unit No.7] Output (at the generation end) 2,376 MW 2013 2014 2015 2016 2017 2018 䞉䞉䞉䞉䞉䞉 2021 (FY) Thermal efficiency (LHV basis) Approx. 62% Fuel LNG

  26. Slide 26: Business Expansion of JERA

    21 Business Expansion of JERA „ TEPCO Fuel & Power, Incorporated and Chubu Electric established “JERA Co., Inc.”, as a new company that implements “a comprehensive alliance covering the entire energy supply chain, from upstream fuel and procurement through power generation.” After establishing JERA,

  27. Slide 27: Expansion of Total Energy Services

    22 Expansion of Total Energy Services „ Taking full liberalization of entry to gas business from April 2017 as an opportunity, gas has begun to be sold to household customers in addition to conventional customers for industrial use and business use. „ With competitive procurement capacity of JERA as

  28. Slide 28: Safety Improvement Measures on Hamaoka Nuclear Power Station <Onsite>

    23 Safety Improvement Measures on Hamaoka Nuclear Power Station <Onsite> „ Major construction works at Unit 4 have been completed excluding some construction works including re-examination of construction work details based on the situation in the field. We are presently undergoing inspections by th

  29. Slide 29: Safety Improvement Measures on Hamaoka Nuclear Power Station <Offsite>

    24 Safety Improvement Measures on Hamaoka Nuclear Power Station <Offsite> Offsite‫ق‬outside of the power plant site‫ك‬ Mutual cooperative systems On March 7, 2017, Chubu Electric Power concluded an agreement As preparation for nuclear disasters, coordination with the on mutual technical cooperation

  30. Slide 30: Efforts for Development of Business Structure that can Adapt to Change of Environment

    Efforts for Development of Business Structure that can Adapt to Change 25 of Environment [Reinforcement of business foundation utilizing ICT and expansion of business areas] „ ICT such as IoT, big data and AI will be utilized for reinforcement of business foundation, and examinations will be made fo

  31. Slide 31: Reference Data (2): Management Information

    04 Reference Data (2) : Management Information Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

  32. Slide 32: Schedule of the Electricity and Gas System Reform

    26 Schedule of the Electricity and Gas System Reform [Schedule of the electricity system reform] Schedule for Schedule for implementing the measures Enacted the bill 3rd phase: Enacted on Further securing the neutrality of the power transmission/distribution In April 2020 June 17, 2015 sector throug

  33. Slide 33: Initiatives of JERA <1>

    27 Initiatives of JERA <1> „ JERA will expand business based on investment profits from each business and profits generated from the optimization of the value chain. ¾ We will divide the value chain from the securing of interests of energy resources to procurement, transportation, gas supply and pow

  34. Slide 34: Initiatives of JERA <2>: Type of Business

    28 Initiatives of JERA <2> : Type of Business [Fuel business (Upstream, procurement, transportation, trading)] Optimum portfolio is create using the world’s largest procurement scale and trading, and fuel procurement that can flexibly respond to change of business environment in the future is realiz

  35. Slide 35: (Reference) Overseas IPP and Fuel Projects of JERA Group (As of July 2017)

    29 (Reference) Overseas IPP and Fuel Projects of JERA Group (As of July 2017) Canada • Goreway Gas Thermal IPP Netherlands • Rietlanden Coal Terminal Oman US U.A.E. • Sur Gas Thermal IPP • Tenaska Gas Thermal IPP • Umm Al Nar Gas Thermal IWPP Taiwan • Carroll County Gas Thermal IPP India • Chang Bin

  36. Slide 36: Sales Strategy <1>: Optimum Proposal of Gas & Electric Power

    30 Sales Strategy <1> : Optimum Proposal of Gas & Electric Power „ We arranged seven gas tariff menus, i.e. the KatEne Gas Plan for households and the BizEne Gas Plan geared toward businesses. They have been set at prices lower than the gas tariff menu offered by Toho Gas. Prices will be lower than

  37. Slide 37: Sales Strategy <2>: Gas Sales Framework

    31 Sales Strategy <2> : Gas Sales Framework „ In 2001, Chubu Electric Power launched a natural gas sales operation geared towards large factories, harnessing its own pipelines. The company has since then been taking incremental steps to strengthen and expand its gas business. „ We started to sale ga

  38. Slide 38: Sales Strategy <3>: Electricity Sales Framework in the Tokyo Metropolitan Area

    32 Sales Strategy <3> : Electricity Sales Framework in the Tokyo Metropolitan Area [Electricity tariff menu in the Tokyo metropolitan area (KatEne Plan) ] ⋇ Top-class low price ¾ Discount rate is 5-10% (KatEne point included) compared with TEPCO Energy Partner’s existing menu. Features ⋈ Benefit ari

  39. Slide 39: Sales Strategy <4>: Enhancement of Points of Contact with Customers

    33 Sales Strategy <4> : Enhancement of Points of Contact with Customers ٛLow voltage ٜ „ Various services with high added values that contribute to convenient and comfortable life as “daily-life coordinator” are developed and provided. ٛHigh voltage嵣Extra-high voltage ٜ „ Total energy solution is pr

  40. Slide 40: Hamaoka Nuclear Power Station <1>: The State of Power Station

    34 Hamaoka Nuclear Power Station <1> : The State of Power Station „ For Unit 4, application for review for checking conformity to New Regulatory Standards was submitted on February 14, 2014. For Unit 3, application for review for checking conformity to New Regulatory Requirements was submitted on Ju

  41. Slide 41: Hamaoka Nuclear Power Station <2>: Progress of the Nuclear Regulation Authority's Review

    Hamaoka Nuclear Power Station <2> : Progress of the Nuclear Regulation 35 Authority’s Review to Verify Compliance with the 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 Aut

  42. Slide 42: Hamaoka Nuclear Power Station <3>: Seawater Inflow via Damaged Tubes

    Hamaoka Nuclear Power Station <3> : Seawater Inflow via Damaged Tubes 36 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 which seawater flowed to cool st

  43. Slide 43: Hamaoka Nuclear Power Station <4>: Activities to Take Part in Dialogue with Local Residents

    Hamaoka Nuclear Power Station <4> : 37 Activities to Take Part in Dialogue with Local Residents „ 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

  44. Slide 44: Composition of Power Sources and Electric Power Output (FY2016)

    38 Composition of Power Sources and Electric Power Output (FY2016) „ Based on energy mix of Japan, aim for optimum composition of power sources by combining various types of power source, such as nuclear power, thermal power and renewable energy, in a well-balanced manner from the standpoint of “S+3

  45. Slide 45: Responses to Global Warming ~ Reduction of CO2 Emissions ~

    39 Responses to Global Warming ~ Reduction of CO2 Emissions ~ „ In order to achieve the target value of the country’s CO2 emission rate in FY2030 through voluntary frameworks structured in the entire electric utility industry, take various actions such as making thermal power facilities highly effic

  46. Slide 46: Renewable Energy <1>: Our Efforts toward Promotion

    40 Renewable Energy <1>: Our Efforts toward Promotion (As of the end of June, 2017) (Reference) Development locations of hydroelectric power station Chubu Electric Chubu Electric Group Conventional hydro operating 196 Site : 5,450MW Akigami : 0.29MW(FY2016) Generation with minimum water level Parent

  47. Slide 47: Renewable Energy <2>: Actions for Expansion of Introduction of Renewable Energy

    Renewable Energy <2>: 41 Actions for Expansion of Introduction of Renewable Energy „ To realize energy mix of Japan, take actions for expansion of introduction of renewable energy such as efforts for adjusting supply and demand in a wide range for change of output of renewable energy and efforts for

  48. Slide 48: Reinforcement of the Frequency Converter (FC)

    42 Reinforcement of the Frequency Converter (FC) „ In order to stably supply electricity when power outage occurs in a wide range due to stoppage of large-scale power source, efforts will be made to increase FC by 900 MW to a total of 2,100 MW in FY2020 so that lending of electricity between regions

  49. Slide 49: Reinforcement of Business Foundation Utilizing ICT and Expansion of Business Areas

    Reinforcement of Business Foundation Utilizing ICT and 43 Expansion of Business Areas „ ICT such as IoT, big data and AI will be utilized for reinforcement of business foundation, and examinations will be made for provision of new services. [Main efforts utilizing IoT] Power network Communications n

  50. Slide 50: Disclaimer

    DISCLAIMER This presentation contains assumptions and forward-looking statements with respect to the financial conditions, and forecasts of the company, which are based on information currently available. These assumptions involve certain risks and uncertainties, and may cause actual results materia

  51. Slide 51: Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

    Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

Chubu Electric Power — Q1 FY2017 Earnings Presentation on 6ix