Chubu Electric Power Company,incorporated · TSE:9502

Chubu Electric Power Company,incorporated — Q1 FY2023 Earnings Presentation

37 slides from Chubu Electric Power Company,incorporated's earnings presentation, July 2023

1. Slide 1: Presentation Materials for Investors 1st Quarter FY2023

   Presentation Materials for Investors 1st Quarter FY2023 July, 2023

2. Slide 2: INDEX

   INDEX Ⅰ Outline of Financial Results for Ⅲ Reference Data: Management Information Three-Months ended June 30, 2023 Summary of Financial Results ･････････････ 1 Consolidated Ordinary Income (Loss) and Net Income (Loss) ･･････････ 17 Summary of Financial Results by Segments ･････････････ 4 Fund Raisin

3. Slide 3: Outline of Financial Results for Three-Months ended June 30, 2023

   Outline of Financial Results for Ⅰ Three-Months ended June 30, 2023 Note: The company’s fiscal year (FY) is from April 1 to March 31 of the following year. FY2023 represents the fiscal year begun on April 1, 2023, and ending on March 31, 2024. 1st Quarter (1Q) represents three months period ended Ju

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

   Summary of Financial Results <1> <Points of Financial Results> (Consolidated) ■ Operating revenues: 897.6 billion yen Operating revenues increased by 131.6 billion yen compared with 2022/1Q, mainly due to an increase in fuel cost adjustment charge (+119.7 billion yen*). *including subsidiary aid for

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

   Summary of Financial Results <2> <Factors contributing to change in consolidated operating revenues> (Operating revenues increased by 131.6 billion yen) （Billion yen） 10,000 1,000.0 An increase in fuel cost Others 9,000 adjustment charge 900.0 12.0 119.7 8,000 800.0 *including subsidiary aid for dra

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

   Summary of Financial Results <3> <Factors contributing to change in consolidated ordinary income> (Ordinary income increased by 210.7 billion yen) （Billion yen） 3,000 300.0 Miraiz Power Grid (Excluding 2,500 250.0 time lag) 19.8 -30.9 3.4 JERA Others 2,000 73.4 (Excluding 200.0 time lag) Time lag in

7. Slide 7: Summary of Financial Results by Segments <1>

   Summary of Financial Results by Segments <1> [Operating revenues] (Billion yen, %) 2023/1Q 2022/1Q Change (A) (B) (A-B) (A-B)/B Miraiz 742.1 597.5 144.6 24.2 Power Grid 200.3 221.6 (21.3) (9.6) Other (*1) 203.9 195.8 8.1 4.1 Adjustment (248.7) (249.0) 0.2 (0.1) Total 897.6 765.9 131.6 17.2 [Ordinary

8. Slide 8: Summary of Financial Results by Segments <2>: Miraiz

   Summary of Financial Results by Segments <2>: Miraiz <Factors contributing to change in Ordinary income> Ordinary income increased by 93.4 billion yen compared with 2022/1Q, mainly due to time lag gain and revision of standard menus for extra high and high voltage, etc. [Reference] Ordinary income e

9. Slide 9: Summary of Financial Results by Segments <3>: Power Grid

   Summary of Financial Results by Segments <3>: Power Grid <Factors contributing to change in Ordinary income>  Ordinary income increased by 19.8 billion yen compared with 2022/1Q, mainly due to revision of transmission charges by Revenue cap system and a decrease in supply and demand adjustment cost

10. Slide 10: Summary of Financial Results by Segments <4>: JERA

    Summary of Financial Results by Segments <4>: JERA <Factors contributing to change in Ordinary income>  Ordinary income increased by 94.0 billion yen compared with 2022/1Q, mainly due to time lag impact becoming gain instead of loss [Reference] Ordinary income excluding time lag: Approx. 7.0 billio

11. Slide 11: Electrical Power Generation

    Electrical Power Generation <Electrical Power Generation> (Chubu Electric Power) ■ Hydro Increased by 0.6TWh since the flow rate was higher than 2022/1Q ■ Renewable energy Same as 2022/1Q (TWh,%) Change 2023/1Q 2022/1Q (A) (B) (A-B) (A-B)/B Hydro 3.0 2.4 0.6 26.8 <flow rate> <114.2> <87.4> <26.8> Nu

12. Slide 12: [Reference] Image of Time Lag (Result)

    [Reference] Image of Time Lag (Result) （Billion yen） Loss (47.0) Income 98.0 Elements of income (time lag from fuel procurement) Elements of cost (fuel procurement) 9 C opyri g h t © C hubu E l ec t ri c P ower C o. , Inc . A l l ri ght s res erv e d .

13. Slide 13: Summary of Forecast for FY2023 <1>

    Summary of Forecast for FY2023 <1> <Forecast> (Consolidated) Forecast has been revised from the previous announcement made on April 28, 2023.  Consolidated operating revenues: 3,650.0 billion yen (forecast) It’s expected to decrease by approx. 50.0 billion yen compared with the previous forecast, m

14. Slide 14: Summary of Forecast for FY2023 <2>

    Summary of Forecast for FY2023 <2> [Principal Figures] <Electrical Energy Sold> (TWh,%) Current April 28 Change (A) (B) (A-B) (A-B)/B Electrical Energy Sold 104.5 104.5 - - Electrical Energy Sold including group companies 112.3 112.3 - - Competitive impacts in sales <approx. 3.0> [Reference] Year-on

15. Slide 15: [Reference] Image of Time Lag (Forecast)

    [Reference] Image of Time Lag (Forecast) ○April 28 <80.0 billion yen> （Billion yen） ○Current <110.0 billion yen> （Billion yen） <FY2023> <FY2023> Income Income 80.0 110.0 Elements of income (time lag from fuel procurement) Elements of income (time lag from fuel procurement) Elements of cost (fuel pro

16. Slide 16: Reference Data: Financial Results

    Ⅱ Reference Data: Financial Results C opyri g h t © C hubu E l ec t ri c P ower C o. , Inc . A l l ri ght s res erv e d .

17. Slide 17: Consolidated Statements of Income

    Consolidated Statements of Income (Billion yen,%) 2023/1Q 2022/1Q Change (A) (B) (A-B) (A-B)/B Operating revenues 897.6 765.9 1,31.6 17.2 Share of profit of entities accounted for using equity method 90.6 - 90.6 - Other 3.1 3.9 (0.8) (20.6) Nonoperating revenues 93.7 3.9 89.8 Large Ordinary revenues

18. Slide 18: Consolidated Financial Standing

    Consolidated Financial Standing (Billion yen) Jun. 30, 2023 Mar. 31, 2023 Change (A) (B) (A-B) Assets 6,610.2 6,455.1 155.1 Liabilities 4,179.6 4,292.8 (113.2) Net assets 2,430.6 2,162.2 268.4 Shareholders’ equity ratio (%) 35.2 31.9 3.3 Outstanding interest-bearing debt 2,969.1 2,925.7 43.4 14 C op

19. Slide 19: Forecast for FY2023 by Segments

    Forecast for FY2023 by Segments [Ordinary Income] (Billion yen, %) FY2023 April 28 Change (Forecast) (A) (B) (A-B) (A-B)/B Miraiz 80.0 75.0 approx. 5.0 6.7 <Ordinary income <70.0> <70.0> <-> <-> excluding time lag> Power Grid 70.0 70.0 - - JERA 150.0 125.0 approx. 25.0 20.0 <Ordinary income <50.0> <

20. Slide 20: Consolidated Financial Indicators

    Consolidated Financial Indicators (%) FY2023 FY2022 FY2025 [Medium-term (Forecast) (Result) management plan] ROIC approx. 3.0 2.9 3.0 or more ROA approx. 3.0 2.8 - ROE approx. 7.0 6.3 approx. 7.0 *Figures excluding time lag 16 C opyri g h t © C hubu E l ec t ri c P ower C o. , Inc . A l l ri ght s r

21. Slide 21: Reference Data: Management Information

    Ⅲ Reference Data: Management Information C opyri g h t © C hubu E l ec t ri c P ower C o. , Inc . A l l ri ght s res erv e d .

22. Slide 22: Consolidated Ordinary Income (Loss) and Net Income (Loss)

    Consolidated Ordinary Income (Loss) and Net Income (Loss) [Ordinary Income (Loss)] [Net Income (Loss)] (billion yen) (billion yen) 400.0 400.0 350.0 350.0 310.0 300.0 300.0 255.6 260.0 250.0 250.0 200.0 191.8 192.2 200.0 169.7 163.4 147.2 150.0 150.0 128.5 121.4 112.9 114.6 100.0 100.0 65.1 74.3 79.

23. Slide 23: Fund Raising and Outstanding Interest-bearing Debt

    Fund Raising and Outstanding Interest-bearing Debt [Fund raising (Nonconsolidated) ] [Outstanding Interest-bearing debt (Consolidated) ] (billion yen) (billion yen) 900.0 3,200.0 approx. 3,100.0 800.0 3,000.0 2,981.1 2,918.9 2,925.7 700.0 2,800.2 600.0 2,800.0 Funding Plan 2,674.7 500.0 300.0 2,625.

24. Slide 24: Consolidated Cash Flow

    Consolidated Cash Flow (billion yen) 800.0 Cash Flows from Operating Activities Cash Flows from Investing Activities FCF * Capital Investment 600.0 562.4 476.8 424.1 400.0 384.1 254.4 335.0 approx. 296.4 295.7 255.8 270.0 200.0 168.3 194.0 98.8 (25.1) 21.6 0.0 79.6 (71.9) approx. (200.0) (240.3) (20

25. Slide 25: Consolidated Financial Ratio and Credit Ratings

    Consolidated Financial Ratio and Credit Ratings (%) [Shareholders’ equity ratio] [Debt-Equity ratio] 40.0 (Times) 2.5 35.7 approx. 35.0 34.4 34.0 32.7 2.0 31.9 2.0 31.1 31.3 1.7 29.7 1.6 1.6 30.0 28.9 1.5 approx. 1.5 1.4 1.4 1.4 1.3 26.1 1.1 25.0 1.0 20.0 0.5 2014 2015 2016 2017 2018 2019 2020 2021

26. Slide 26: Consolidated ROA and ROE

    Consolidated ROA and ROE (%) [ROA] *Figures excluding time lag (%) [ROE] *Figures excluding time lag 6.0 12.0 5.0 10.0 approx. 4.0 8.0 7.4 7.0 3.4 approx. 6.6 6.8 3.2 3.2 3.0 6.3 6.3 3.0 3.0 2.8 6.0 5.5 2.6 2.4 4.1 2.0 4.0 1.7 1.4 1.0 2.0 1.9 0.6 0.0 0.0 (1.0) (2.0) (2.0) (4.0) 2014 2015 2016 2017 2

27. Slide 27: Consolidated ROIC and Total Shareholders Return (TSR)

    Consolidated ROIC and Total Shareholders Return (TSR) (%) [ROIC] *Figures excluding time lag [TSR] 5.0 Total Shareholders Return is a ratio that return earned on equity investments (dividend and capital gain) (%) divided by investment amount (stock price). 150.0 4.0 124.6 131.8 3.3 3.4 approx. 118.0

28. Slide 28: Sales Figures of Miraiz Group

    Sales Figures of Miraiz Group 2023/1Q Target The number of entry; Approx. 2.39 million - New electric tariff menu As of June, 2023 Chubu region The number of sales; Approx. 71 thousand Acquire 100 thousand customers Services in a set with electric power or gas As of June, 2023 early from FY 2021 Inc

29. Slide 29: Monthly Breakdown of Electrical Energy Sold of Miraiz

    Monthly Breakdown of Electrical Energy Sold of Miraiz (TWh) FY2023 Apr. May June 1Q Low voltage 2.3 2.0 1.8 6.1 High voltage・ Extra-high 5.5 5.5 6.2 17.1 voltage Total 7.8 7.5 8.0 23.2 (TWh) FY2022 Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Total Low voltage 2.6 2.1 1.8 2.4 2.7 2.7 2

30. Slide 30: Structure of Power Generated and Procured

    Structure of Power Generated and Procured (preliminary results) Structure of Power Generated and Procured Usage status of non-fossil fuel certificate Other *2 Specified in renewable Not Specified 7% energy JEPX *1 Less than 1% 4% Nuclear 13% 15% Coal Coal Renewable 9% 26% 22% FIT*3*4 Oil 8% 4% Renew

31. Slide 31: Overview of Renewable Energy Business

    Overview of Renewable Energy Business  At present, the capacity of our entire group is approx. 780 MW, against the target of expanding renewable energy capacity* to 3.2 GW or more by around 2030. * In addition to the renewable energy facilities owned by our group, this includes the capacity of faci

32. Slide 32: Expansion of Global Business <1>

    Expansion of Global Business <1>  In the global business (overseas business), we will form an optimized portfolio by combining four segments (Green Field, Blue Field, Retail / Transmission and Distribution (T&D) / New Services and Frontier Field) to become a decarbonized energy company mainly in Eu

33. Slide 33: Expansion of Global Business <2>

    Expansion of Global Business <2>  In Europe, we use Eneco as platform for European strategy to expand growth areas (renewable, retail, new services). About acquisition of Eneco Investment 4.1 billion euros (approx. 500 billion yen) (Mar. 2020) (Investment ratio : Mitsubishi 80%, Chubu 20%) Business

34. Slide 34: Expansion of Global Business <3>

    Expansion of Global Business <3> Country Project Period Laos / African countries Cooperation program on electricity business management 2020.12~2021.3 Sri Lanka The project for capacity development on the power sector master plan 2020.3~2023.3 29 C opyri g h t © C hubu E l ec t ri c P ower C o. , In

35. Slide 35: Current status of the Hamaoka Nuclear Power Station

    Current status of the Hamaoka Nuclear Power Station  Responding to the Inspection with New Regulatory Standards by the Nuclear Regulation Authority at the Hamaoka Nuclear Power Plant acting with the resolve never to repeat an accident similar to the Fukushima Daiichi Nuclear Power Station  Promoti

36. Slide 36: 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

37. Slide 37: C opyri g h t © C hubu E l ec t ri c

    C opyri g h t © C hubu E l ec t ri c P ower C o. , Inc . A l l ri ght s res erv e d .

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