Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — Q1 FY2024 Earnings Presentation
28 slides from Tokyo Gas's earnings presentation, Jul 31, 2024
Slide 1: FY2024 1Q Financial Results
FY2024 1Q Financial Results ended June, 2024 July 31, 2024 "TOKYO GAS TSE:9531
Slide 2: Today's Key Messages
Today’s Key Messages 2 H (unit : 100 million yen) ® Consolidated FY2024 1Q saw a YoY decline in both sales and profits, driven by a decrease in city gas unit price due to resource costs adjustment, etc. FY2024 10 Net sales : 5,869(vs FY2023 1Q Results -627) Profit attributable to owners of parent :
Slide 3: FY2024 Consolidated Financial Results ended June, 2024
O01 ) a FY2024 Consolidated Financial Results ended June, 2024 Note:The segment information disclosed for FY2024 and FY2023(excluding segment assets and ROA of FY2023)reflects new segment classifications that went into effect from FY2024 as a result of a restructuring of our subsidiary TOKYO GAS UNI
Slide 4: Both sales and profits decreased in 1Q FY2024 year-on-year
Both sales and profits decreased in 1Q FY2024 on a year-on-year basis. Net sales decreased by 627 hundred million yen. This was mainly due to a decrease in raw. This was mainly attributable to a decrease in unit price due to resource cost adjustments. Operating profit decreased by 680 hundred millio
Slide 5: 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. 5
Slide 6: Changes in segment profit year on year
The 567 hundred million yen decrease in profit of the Energy Solution segment mainly reflects 407 hundred million yen decline in the gross margin of city gas due to a sliding time lag effect,etc.. The electricity business also recorded a decrease of 89 hundred million yen mainly due to a fall in gro
Slide 7: City gas sales volume in 1Q FY2024
The city gas sales volume in 1Q FY2024 decreased by 1.5% overall, mainly reflecting a decrease in sales volumes to residential and commercial customers due to the difference in revenue recognition estimates, which was partially offset by an increase in the sales volume to wholesale resulting from hi
Slide 8: Electricity sales volume in 1Q FY2024
Total electricity sales volume in 1Q FY2024 decreased by 5.0% overall. Retail electricity sales rose by 5.6% due to higher demand owing to an increase in the number of customers, while the sales volume to wholesale and others fell by 14.2%. 8
Slide 9: FY2024 Full Year Forecast
FY2024 Full Year Forecast Note:The segment information disclosed for FY2024 and FY2023(excluding segment assets and ROA of FY2023)reflects new segment classifications that went into effect from FY2024 as a result of a restructuring of our subsidiary TOKYO GAS UNITED KINGDOM LTD. from the Energy solu
Slide 10: Medium-term Management Plan key figures and investment plans
This slide shows the status of the key figures and investment plans of our Medium-term Management plan, which covers the period from FY2023 to FY2025. 10
Slide 11: Segment ROA outlook for FY2024
This slide shows our segment ROA outlook for FY2024 compared to our previous outlook and FY2023 results. 11
Slide 12: FY2024 full year forecast
For the FY2024 full year, we forecast a decrease in sales and an increase in profit (profit attributable to owners of parent). The economic frame for July and beyond, which serves as the basis for our forecast, is unchanged from the previous economic frame, which was an exchange rate of 145/$ and a
Slide 13: Forecast for net sales and profit by segment
This slide shows our forecast for net sales and profit by segment and changes from the previous forecast. The sum of segment profits remains unchanged from our previous forecast. Our profit forecast for each segment is shown in the following slides. The slides for each segment also show the segment’
Slide 14: Energy Solution segment profit forecast raised
We have raised our profit forecast for the Energy Solution segment by 15 hundred million yen. Although we are maintaining our forecast for city gas and electricity gross margins, the new forecast reflects cost reductions throughout the segment. 14
Slide 15: Segment Information: Energy solution
Segment Information: Energy solution Summary of Results 15 (Unit: 100 million yen) FY2024 Previous FY2023 Forecast Forecast ee * Results Change ie Segment Assets 17,940 17,940: 0 _ 17,083 857 5.0 ROA (%) 5.7 5.6 O41 = 12.0 6.3 - Depreciation 766" 766" o* a 699 67 95 Total 1,113 1,113 o _ 688 425 617
Slide 16: Gas and electricity sales volume forecast
This slide shows our forecast for gas and electricity sales volumes, which is the basis for our forecast for the Energy Solution segment. Our gas sales volume forecast is unchanged from the previous forecast. 16
Slide 17: Electricity sales volume forecast
Our electricity sales volume forecast is unchanged from the previous forecast. 17
Slide 18: Network segment profit forecast
Our forecast for segment profit of the Network segment is unchanged from the previous forecast. 18
Slide 19: Overseas segment profit forecast lowered
We have lowered our forecast for segment profit of the Overseas segment by 40 hundred million yen, mainly reflecting a decrease in sales in the North American shale gas business due to low gas prices in the first quarter (from January to March 2024 for overseas businesses). 19
Slide 20: Urban Development segment profit forecast
Our forecast for segment profit of the Urban Development segment is unchanged from the previous forecast. 20
Slide 21: Changes in profit by major element
This slide illustrates the changes in profit for each major element of change from the previous fiscal year. 21
Slide 22: Reference materials
Reference materials include the economic frame sensitivity table, crude oil prices and exchange rates, and information on major overseas investments. Our initiatives in “realizing management mindful of capital costs and stock prices” will also be included here on a continual basis. 22
Slide 23: Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate
Gas Gross Margin Sensitivity to Change i Impact of rising JCC (japan Crude Cocktail Prices) by $1/bbl Impact on earnings Crude Oil Price and Exchange Rate 23 BH (Unit: 100 million yen) 2Q 3Q 4Q Full year 2Q -1 -9 +6 -4 Period 30, — 2 2 ait 4Q = - -2 =2 Full year Gl oid oS -17 Impact of depreciation
Slide 24: Crude oil price - Exchange rate
Crude oil price - Exchange rate Crude oil price (Japan Crude Cocktail Prices) ($/bb!) 120.00 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 ¢ £ g Ss ra s <= FY2024 ge FY2023 mqeFY2022 Ps s F Exchange rate (is) 160.0 155.0 —_— 150.0 145.0 140.0 135.0 130.0 125.0 120.0 FF S F SF SF SF S
Slide 25: Realizing management mindful of capital costs and stock prices
Realizing management mindful of capital costs and stock prices 25 Trends in key indicators PBR 2.00 1.80 1.60 Fv2013.--FY2014=FY2015—«FY2016 FY2024 Forecast ROA 2.1% ROE 4.8% Fy2017—-FY2018—FY2019——«FY2020 mm PBR —rr Previous Forecast 2.1% 4.7% Achieve PBR of more than one early and move to a higher
Slide 26: Realizing management mindful of capital costs and stock prices
Realizing management mindful of capital costs and stock prices' 26 BH (1) Advancing business portfolio management ™ We introduced KPI tree-based business management this fiscal year to facilitate the achievement of our Group KGIs/KPIs. Each internal company, key business subsidiary, etc. defines and
Slide 27: Overseas Projects
Overseas Projects Area No Country Subject Eagle Ford TG Natural Resources TGES America ng OH WEA Beaters Longbow ‘ARM Energy Holdings © Mexico Bayi © Molaysia_ GASMALASIATBRGL 1992 YSI8__GAS MALASIA ENERGY ADVANCE Sdn.8hd. 2014 Bang bo Downstream Natural gas power 2016 @ thailand ~GWHAMT Downstream
Slide 28: 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