Hokkaido Electric Power Company,incorporated · TSE:9509
Hokkaido Electric Power Company,incorporated — FY2021 Earnings Presentation
54 slides from Hokkaido Electric Power Company,incorporated's earnings presentation, May 13, 2021
Slide 1: Financial Results for the Year Ended March 31, 2021
■Financial Result for the Year Ended March 31, 2021 May 13, 2021 Hokkaido Electric Power Co., Inc.
Slide 2: Table of Contents
■Table of Contents □Financial Results and Forecasts □Management Approach ・ Consolidated Business Results/Financial Status ・・・ 2 ・ Initiative for Early Restart of Tomari Nuclear ・・・ 31 Power Station ・ Consolidated Statement of Operations ・・・ 3 ・ Renewable Energy-Based Power ・・・ 35 Generation ・ Outlin
Slide 3: Consolidated Business Results/Financial Status
■ Consolidated－ Business Results/Financial Status 【 Business results】 （Billion yen） April 1, 2020 – April 1, 2019 – Increase/ Comparison March31, 2021 March31, 2020 Decrease (A)/(B) % (A) (B) (A)-(B) Operating Revenue 740.7 748.4 (7.6) (1.0) Operating Profit 53.7 42.4 11.3 26.8 Ordinary Profit 41.1
Slide 4: Consolidated Statement of Operations
■ Consolidated－ Statement of Operations （ Billion yen ） April 1, 2020 – April 1, 2019 – Increase/Decrease Comparison March 31, 2021(A) March 31, 2020(B) (A)-(B) (A)/(B) % Operating Revenues 740.7 748.4 (7.6) ( 1.0) Electricity utility operating revenue 702.9 712.6 (9.7) (1.4) Revenue Ordinary Other
Slide 5: Outline of Consolidated Financial Results (Year-on-Year Comparison)
■Outline of Consolidated Financial Results (Year-on-Year Comparison) Although there was an increase in electricity sales due to the effect of the cold waves in Operating winter, operating revenue decreased by 7.6 billion yen to 740.7 billion yen year on year for Revenue (Decreased) reasons such as t
Slide 6: FY2021 Achievements: Factors in Change to Ordinary Profit
■ FY2021 Achievements (Consolidated Financial Results); Factors Involved in Change to Ordinary Profit (Year-on-Year Comparison) Impact of (Unit: 100 million yen) change to meter- reading schedule implemented in the previous fiscal year +100 (126) Impact of COVID-19 Higher efficiency in pandemic the
Slide 7: Outline of Consolidated Financial Results (Comparison with Forecasts in January 2021)
■Outline of Consolidated Financial Results (Comparison with Forecasts in January 2021) Consolidated ordinary income for FY2021 increased by approximately 11 billion yen compared to the forecasts announced in January, due to an increase in efficiency in the procurement of fuel, materials and equipmen
Slide 8: Factors in Change to Ordinary Profit (Comparison with January Forecasts)
■ FY2021 Achievements (Consolidated Financial Results); Factors Involved in Change to Ordinary Profit (Comparison with Forecasts in January) (Unit: 100 million yen, approx. 100 million yen) +10 Other +30 Increase in the efficiency of procurement of fuel, materials and +70 equipment, etc. 411 Increas
Slide 9: Forecasts of Consolidated Financial Performance for FY2022
■ Forecasts of Consolidated Financial Performance for FY2022 (Ending March 2022) The consolidated earnings forecast for FY 2022 is announced as follows. （ Billion yen ，TWh） April 1, 2021 – April 1, 2020 – Increase/Decrease March 31, 2022 March 31, 2021 (A)-(B) Forecast (A) (B) Operating Revenue Appr
Slide 10: Outline of Forecasts of Consolidated Financial Performance for FY2022
■Outline of Forecasts of Consolidated Financial Performance for FY2022 (Ending March 2022) Some increase in sales to high-voltage and extra high-voltage customers as a result of Electricity sales sales promotion in consideration of customer needs is expected, but due to the boost in in the retail sa
Slide 11: FY2022 Forecasts: Factors in Change to Ordinary Profit
■ Forecasts of Consolidated Financial Performance for FY2022 (Ending March 2022); Factors Involved in Change to Ordinary Profit (Year-on-Year Comparison) (Unit: 100 million yen, approx. 100 million yen) Forecasts of Financial Performance for FY2022 (Year-on-Year Comparison) Decrease in repair work D
Slide 12: FY2021 Year-End Dividend
■FY2021 Year-End Dividend As for the year-end dividend, the Board of Directors at a meeting held today made a resolution to submit the proposal as detailed below to the 97th session of the ordinary meeting of shareholders to be held on June 25, 2021, in comprehensive consideration of FY2021 financia
Slide 13: FY2022 Dividend Forecasts
■FY2022 Dividend Forecasts The following shows the forecasts for mid-term and year-end dividends to be paid in FY2022, which we have made by comprehensively taking into consideration the medium- to long-term management environment and the income and expenditure situation. 【 Cash Dividend per Share 】
Slide 14: Financial Results Supplementary Materials
■ Financial Results Supplementary Materials Electricity Sales Monthly Electricity Sales Statement of Operations（Revenue） Power Supply Statement of Operations（Expenses and Ordinary Profit） Segment Information Statements of Cash Flow Time Lag Impact Incurred by Fuel Cost Adjustment System Expense brea
Slide 15: Consolidated Electricity Sales
Consolidated; Electricity Sales ・Electricity sales in the retail market decreased due to the impact of change to the meter-reading schedule in some of the agreements concluded with high-voltage customers in the previous fiscal year and effects caused by the COVID-19 pandemic, in spite of an increase
Slide 16: Monthly Electricity Sales
■ Monthly Electricity Sales （GWh, ％） FY2021 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Total Residential 787 780 545 590 650 592 592 739 761 1,097 876 795 8,804 Low-voltage customers Commercial and industrial 174 126 79 86 102 89 88 123 190 401 329 272 2,059 Subtotal 961 906 624 676
Slide 17: Consolidated Statement of Operations (Revenue)
■ Consolidated; Statement of Operations (Revenue) (Unit: billion yen) April 1,2020– April 1,2019– Increase/ March 31, March 31, Comparison Decrease (A)/(B)％ Major cause of increase/decrease 2021 2020 (A)-(B) (A) (B) Operating Revenue 740.7 748.4 (7.6) (1.0) Electric utility operating revenue 702.9 7
Slide 18: Consolidated Power Supply
Consolidated; Power Supply ・We were able to maintain a stable supply by appropriately managing the supply equipment during a time when all units at the Tomari power plant were suspended and the flow rate was below the annual average at 92.3%. （GWh） April 1,2020– April 1,2019 – Increase/ Comparison M
Slide 19: Statement of Operations (Expenses and Ordinary Profit)
Consolidated; Statement of Operations (Expenses and Ordinary Profit) (Unit: billion yen) April 1,2020 April 1,2019 Increase / – March 31, – March 31, Comparison Major cause of Decrease 2021(A) 2020(B) (A)/(B)％ increase/decrease (A) - (B) Electric utility operating expenses 651.7 674.6 (22.9) (3.4) P
Slide 20: Consolidated Segment Information
Consolidated; Segment Information ・The operating revenue for the Hokkaido Electric Power Company segment was 669.5 billion yen. As for the segment income, ordinary income was 36.2 billion yen due to the boost in income caused by cold waves in winter as well as efforts to reduce costs through higher
Slide 21: Consolidated Statements of Cash Flow
Consolidated; Statements of Cash Flow ・Cash flow from operating activities increased by 33.8 billion yen to 136.5 billion yen year on year for reasons such as increases in profit before income taxes and in depreciation and amortization. ・Cash flows from investing activities decreased by 41.1 billion
Slide 22: Time Lag Impact Incurred by Fuel Cost Adjustment System
Time Lag Impact Incurred by Fuel Cost Adjustment System FY2020 Approx. 3.0 Billion yen income FY2021 Approx. 6.0 Billion yen income Income Average Fuel price (basis of fuel cost adjustment charge) Fuel procurement price (basis of fuel cost) *The time lag impact is a mechanical calculation of the dif
Slide 23: Expense Breakdown: Personnel
Expense breakdown （Two Companies Total*） Personnel （Billion yen） April 1, 2020 April 1, 2019 Increase/ –March 31, – March 31, Decrease Major factors for increase/decrease 2021 (A 2020 (B) (A)-(B) Personnel 56.5 56.6 (0.0) 【Amortization of actuarial gains and losses】 *Actuarial gains and losses are b
Slide 24: Expense Breakdown: Fuel and Purchased Power
Expense breakdown （Two Companies Total*） Fuel and Purchased Power （Billion yen） April 1, 2020 April 1, 2019 – Increase/ –March 31, March 31, Decrease Major factors for increase/decrease 2021 (A) 2020 (B) (A)-(B) Fuel and [Cause of increase] 262.2 274.9 (12.7) ・Increase in renewable energy purchasing
Slide 25: Expense Breakdown: Maintenance and Depreciation
Expense breakdown （Two Companies Total*） Maintenance （Billion yen） April 1, 2020 – April 1, 2019 – Increase/ March 31, March 31, Decrease Major factors for increase/decrease 2021 (A) 2020 (B) (A)-(B) Maintenance 69.9 79.9 (10.0) 【Cause of decrease】 Generation 36.2 40.6 (4.4) ・Decrease in repair work
Slide 26: Expense Breakdown: Interest and Other Expenses
Expense breakdown （Two Companies Total*） Interest Expenses （Billion yen） April 1, 2020 – April 1, 2019 – Increase/ March 31, 2021 March 31, 2020 Decrease Major factors for increase/decrease (A) (B) (A)-(B) [Interest(on average)%] (0.72) (0.77) Interest Expenses 10.4 11.1 (0.7) Other Expenses （Billio
Slide 27: Key Factors and Sensitivity Factors
Key Factors・Sensitivity Factors Key Factors Increase/ April 1, 2020 –March April 1, 2019 – March Decrease 31, 2021 (A) 31, 2020 (B) (A)-(B) Foreign Exchange Rate (Yen/$) 106 109 (3) CIF Crude Oil Price ($/barrel) 43.4 67.8 (24.4) Water Flow Rate (%) 92.3 88.7 3.6 Sensitivity Factors （Billion yen） In
Slide 28: Consolidated Statements of Balance Sheets
Consolidated Statements of Balance Sheets (Unit: billion yen) As of March 31, As of March 31, Increase/ Decrease Major factors for increase/decrease 2021(A) 2020(B) (A)-(B) Assets 2,001.6 1,959.0 42.5 ・Increase in cash and deposits [26.2] ・Increase in notes and accounts payable-trade [5.7] Liabiliti
Slide 29: Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income （Billion yen） Increase/ April 1, 2020 – April 1, 2019 – Decrease March 31, 2021 (A) March 31, 2020 (B) (A)-(B) Profit 36.3 27.1 9.2 Other Comprehensive Income 9.7 (2.8) 12.5 Valuation difference on availa
Slide 30: Effect of the Feed-in-Tariff Scheme for Renewable Energy
Financial Results - Effect of the feed-in-tariff scheme for renewable energy Those engaged in the power generation business using renewable energy sources ④ ③ Hokkaido Cost bearing Electric Power adjustment Company, Inc. organization ① ② Electricity customers Effect of the feed-in-tariff scheme for
Slide 31: Management Approach
■Management Approach 30
Slide 32: Initiative for Early Restart of Tomari Nuclear Power Station (1)
■Initiative for Early Restart of Tomari Nuclear Power Station (1) Conformity Review: Active Fault Assessment on the Premises September 10 and 11, ・The Nuclear Regulation Authority (NRA) carried out an on-site inspection and confirmed 2020 the results of additional surveys conducted after last Novemb
Slide 33: Initiative for Early Restart of Tomari Nuclear Power Station (2)
■Initiative for Early Restart of Tomari Nuclear Power Station (2) Main Issues: Active Fault Assessment on the Premises Confirmations (1) Validity of the assessment that the displacement and deformation caused (1) The minor fault did not displace or by the minor fault stop just beneath the basal surf
Slide 34: Initiative for Early Restart of Tomari Nuclear Power Station (3)
■Initiative for Early Restart of Tomari Nuclear Power Station (3) Responses to Major Issues Revealed at the Conformity Review ◼ For the determination of the design basis earthquake ground motion and design basis tsunami, we have been conducting an on-site active fault assessment, an assessment of ea
Slide 35: Initiative for Early Restart of Tomari Nuclear Power Station (4)
■Initiative for Early Restart of Tomari Nuclear Power Station (4) Image of the restart process Issues (1) Assessment of seismic fault activity within the power station site Earthquakes, tsunamis, etc. (2) Assessment of earthquake ground motion from an Examinations Final Permission for a change in of
Slide 36: Renewable Energy-Based Power Generation; Geothermal Binary Power Generation
■Renewable Energy-Based Power Generation; Geothermal binary power generation Construction of new “Mori Binary Power Plant” to use the surplus heat generated from the Mori Geothermal Power Station ◼ Power output: 2,000kW ◼ Power generation method: Binary power generation system using re-injection wat
Slide 37: Electricity Business Strategy Looking Ahead to Carbon Neutrality
■Electricity Business Strategy Looking Ahead to Carbon Neutrality ◼ Low-voltage customers: The shift to electrification and the spread of EVs provide business opportunities for us. We will begin discussing the enhancement of customer services. ◼ High-voltage customers: We will respond to customer ne
Slide 38: Measures to Expand the Electricity Retail Business; Low-voltage
■Measures to Expand the Electricity Retail Business; Low-voltage residential sector ◼ Promote diversification of services such as a loyalty points program (Enetoku Point Plan) and a membership-based website (Hokuden Ene Mall) to encourage subscriptions ◼ Build alliances with a wide range of business
Slide 39: Measures to Expand the Electricity Retail Business; High-voltage
■Measures to Expand the Electricity Retail Business; High-voltage and extra high-voltage sector, Electricity sales in the Tokyo metropolitan area ◼ High-voltage and extra high-voltage sector Services Comprehensive Electricity charge Provide services such as strength of the Group Optimal rate plan, e
Slide 40: Reference Materials
■ Reference Materials 39
Slide 41: Measures against the Novel Coronavirus for Business Continuity
■Measures against the Novel Coronavirus for Business Continuity ◼ As a designated public institution that provides the lifeline service of electricity, the entire HEPCO Group is committed to ensuring a stable power supply to help people in Hokkaido to use electricity with peace of mind by taking tho
Slide 42: HEPCO Group Management Vision 2030
■[Reference]HEPCO Group Management Vision 2030; Management Goals for 2030 Our business environment will change substantially around the time the Tomari Nuclear Power Station, our major power source, is restarted. While aiming to return the Tomari Nuclear Power Station to operation as early as possib
Slide 43: HEPCO Group Management Vision 2030: Financial Targets
■[Reference]HEPCO Group Management Vision 2030; Management Goals for 2030 [Phase I (before the restart of [Phase II (after all units of Tomari NPS are back Financial target Tomari NPS)] in operation)] • Consolidated capital Approx. ratio: 15%+ We will Group company continue our efforts to further im
Slide 44: For a More Competitive Energy Mix
■[Reference] For a More Competitive Energy Mix ◼ We aim to achieve a competitive energy mix that is balanced from the S + 3E (Safety, Energy Security, Economic Efficiency and Environment) perspective and also ensure a future stable supply of electric power by constructing new power sources as well a
Slide 45: Outline of Thermal Power Plants
■[Reference] Outline of Thermal Power Plants Record of Power Rated output Power suspension or generation Unit (10,000 kW) Period of Operation* generation decommissioning facility method of facilities March 2019 1 17.5 52 years and 10 months Sub-C (suspended) Naie March 2019 2 17.5 51 years and 1 mon
Slide 46: Drastic Measures for Higher Efficiency and Cost Reduction
■[Reference]Drastic Measures for Higher Efficiency and Cost Reduction ◼ Implement drastic measures for greater management efficiency and cost reduction under the Leadership of the Management Infrastructure Enhancement Promotion Committee (chaired by the president of HEPCO) ◼ 1,044 kaizen projects at
Slide 47: Drastic Measures for Higher Efficiency and Cost Reduction (2)
■[Reference]Drastic Measures for Higher Efficiency and Cost Reduction ◼ Achieve drastic improvement of efficiency and cost reduction through unrelenting efforts to review all operations ◼ Strongly promote kaizen activities by steadily promoting large-scale kaizen projects that are expected to be hig
Slide 48: Promotion of DX (Digital Transformation)
■[Reference]Promotion of DX (Digital Transformation) ◼ Establish a new organization specializing in DX to accelerate corporate reform initiatives through “operational reform using digital technology” and “mindset reform to continue taking on the challenge of change.” Key initiatives ◆Structure of in
Slide 49: Promotion of DX for Thermal Power Plants
■[Reference]Promotion of DX (Digital Transformation) ◼ Promote DX (digital transformation) to achieve higher operational efficiency of thermal power plants ◼ We will promote early detection and rapid response to equipment malfunctions, save labor required for on-site patrol, reduce the number of peo
Slide 50: Ishikariwan Shinko Offshore Wind Power Generation
■[Reference] Renewable Energy-Based Power Generation; Ishikariwan Shinko Offshore Wind Power Generation Signed a partnership agreement with Green Power Investment Corporation (GPI) ◼ Approx. 100,000 kW bottom-mounted offshore wind power generation facility will be operated in the port area in FY2024
Slide 51: Measures to Expand the Acceptance of Renewable Energy
■[Reference]Measures to Expand the Acceptance of Renewable Energy ◼ While maintaining the quality of electricity supplied in Hokkaido, implement measures to expand the acceptance of renewable energy. Amount of renewable energy adopted (as of the end of February 2021) The amount of renewable Biomass,
Slide 52: Promotion of Health Management
■[Reference]Promotion of Health Management ◼ In order to fulfill our role as a responsible energy supplier and to contribute to the sustainable development of Hokkaido, it is important for each of our employees, who are the foundation of our business, to maximize their abilities and improve their pr
Slide 53: Hepco Group Report 2020 (Integrated Report)
Hepco Group Report 2020 (Integrated Report) （Published September 24, 2020） URL:https://www.hepco.co.jp/english/ir/pdf/hepco_group_report_2020.pdf 52
Slide 54: For Further Information
This material is compiled based on data available as of May 11, 2021. The company makes no guarantee as to the reliability and integrity of such information, as this is not intended to serve as disclosure material as stipulated by the Financial Instruments and Exchange Law of Japan. Projections conc
Hokkaido Electric Power — FY2021 Earnings Presentation on 6ix