Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — Q1 FY2022 Earnings Presentation
30 slides from Tokyo Gas's earnings presentation, Jul 27, 2022
Slide 1: FY2022 1Q Financial Results
FY2022 1Q Financial Results ended June, 2022 July 27, 2022 [Revised on August 9,2022] "E TOKYO GAS TSE:9531
Slide 2: Consolidated Financial Results
o1 FY2022 Consolidated Financial Results ended June, 2022 Note: Figures for FY2021 reflect the retrospective application of a change in accounting policies. "RTOKYO GAS
Slide 3: Both sales and profits increased in 1Q FY2022
Both sales and profits increased in 1Q FY2022 compared to the corresponding period of the previous year. Please note that figures for FY2021 reflect the retrospective application of a change in accounting policies. Net sales increased by ¥208.8 billion. This was mainly attributable to an increase in
Slide 4: City gas sales volume increased by 2.9%
The city gas sales volume in 1Q FY2022 increased by 2.9% overall, thanks to an increase in sales to power generation customers and an increase in sales volume to residential customers due to a temperature effect as compared to high temperatures in the same period of the previous year. These offset t
Slide 5: Total electricity sales volume increased by 26.8%
Total electricity sales volume in 1Q FY2022 increased by 26.8%. Retail electricity sales rose by 9.2% due to an increase in the number of customers, while the wholesale and other electricity sales volume grew by 36.6%. 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 ¥21.9 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. In the Overseas segment, profit increased by ¥10.7 billion due to a rise in profit from the upstream projects
Slide 8: Year-on-year changes under previous segment classification
For your reference, slides 8 and 9 show 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: Former Segments: Ordinary Profit Analysis
{ Former Segments } FY2022 10 Results: Ordinary Profit Analysis © City Gas +¥24.8 bn Gas + Increase in gross margin +¥34.7 bn: Change in volume, etc. +4.5 (incl change due to >| +¥17.5bn temp effect +26), siding be lag effect +302 £17 Sen 1 | Sci saree ope 2 ttn cs (Resource costs, etc.) -¥81.0 bn:
Slide 10: FY2022 Full Year Forecast
02 FY2022 Full Year Forecast Note: Figures for FY2021 reflect the retrospective application of a change in accounting policies. "R TOKYO GAS 10
Slide 11: 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 net sales has been upgraded while our forecast for profit has remained unchanged. The economic framework for July onward, which serves as a basis
Slide 12: Gas sales volume forecast increased by 2.0%
Our forecast of gas sales volume has increased by 2.0% from our previous forecast. This mainly reflects an expected increase in operation of power generation customers. 12
Slide 13: Electricity sales volume forecast decreased by 1.3%
Our forecast of electricity sales volume has decreased by 1.3% from our previous forecast, mainly reflecting an expected drop in the wholesale and other electricity sales volume. 13
Slide 14: Segment sales and profit forecasts
This slide shows segment sales and profit forecasts and changes from the previous forecasts. The total segment profit is expected to be in line with the previous forecast. The major profit forecast changes for each segment are explained in the next slide. 14
Slide 15: Forecast revisions by segment
For the Energy solution segment, we have revised our profit forecast downward by ¥12.6 billion. This mainly reflects an expected drop in gross margin due to the impact of a rise in unit transaction prices on JEPX in the electricity business. For the Network segment, we have revised our profit foreca
Slide 16: Comparison of forecasts with previous year actuals
Slides 16, 17, and 18 show comparisons between our current full-year forecasts and the actual performance of the previous year. 16
Slide 17: New Segments: FY2022 Forecast Ordinary Profit Analysis vs. FY2021
vs. FY2021 { New Segments ] FY2022 Forecast: Ordinary Profit Analysis Results FY2022 (Forecast) ¥127.0bn Change -¥9.3bn (-6.9%) FY2021 (results) ¥136.3bn Segment profit +¥12.4bn (+9.4%) Energy solution + Network -¥32.2bn (24.1%) Overseas +¥26.9bn (+101.3%) © Increase in city gas gross margin +#10.2
Slide 18: Factors for Changes from FY2021 Ordinary profit
lated Forecast (Apr. 1, 2022 — Mar. 31, 2023) Factors for Changes from FY2021 Ordinary profit (billion yen) 200 180 160 140 Approx. -30.! inserx By pee approx. -12. 120 exchange gains: 100 80 60 40 20 FY2022 Forecast Copyright® TOKYO GAS Co., Ltd. All Rights Reserved. "STOKVOGAS 18
Slide 19: Expected use of cash flows in FY2022
This slide details the expected use of cash flows in FY2022. 19
Slide 20: Key indicators on a consolidated basis
This slide shows key indicators on a consolidated basis. 20
Slide 21: 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 1Q FY2022, and a list of major overseas investment projects, etc. From this fiscal period, the key topics shown on slide 24 onwar
Slide 22: Crude Oil Price and Exchange Rate Sensitivity
ide Oil Price and Exchange Rate 22 H Impact of rising JCC (Japan Crude Cocktail Prices) by $1/bbl Gas Gross Margin Sensitivi Impact on earnings (Unit: billion yen) 2Q 3Q 4Q Full year 2Q -0.1 -0.6 +0.9 +0.2 3Q _ -0.2 -1.0 “1.2 Period 4a — = -0.1 -0.1 Full year -0.1 -0.8 -0.2 =1:1 Impact of depreciati
Slide 23: Crude oil price - Exchange rate
rude oil price - Exchange rate 235 Crude oil price (Japan Crude Cocktail Prices) ($/bb!) 120.00 110.00 —." 100.00 60.00 50.00 40.00 30.00 20.00 ‘ we s S FF & & € —e-FY2022 —e-FY2021 sqmFY2020 Ps s F Exchange rate (W/s) 135.0 130.0 —— 125.0 120.0 100.0 Ff SF SF SF KS £ SF SF SK e 5s —@-FY2022 ~eFY202
Slide 24: Key Topics in FY2022 1Q (Excerpted from Press Releases)
Key Topics in FY2022 1Q (Excerpted from Press Releases) Key topics of press releases issued in 1Q FY2022 (1) Business & financial topics (2) Nonfinancial ESG-related topics & related initiatives i i i i *1 Press releases issued by Tokyo Gas Engineering Soluti (1) Business & financial topics oe PA ee
Slide 25: Key Topics in FY2022 1Q: Nonfinancial ESG topics
Key Topics in FY2022 1Q (Excerpted from Press Releases) 2 (2) Nonfinancial ESG topics 13. Press releases issued by Tokyo Gas Engineering Solutions Press releases issued by Tokyo Gas Network Major related materiality Transition to a holdings group structure (@ Governance & compliance Selection as an
Slide 26: ESG-related topics: Climate change
Key Topics in FY2022 1Q (Excerpted from Press Releases) 26 BH ESG-related topics: Climate change Methanation is a technology for synthesizing methane, the primary component of city gas, by reacting hydrogen and CO,. The existing technologies for manufacturing methane face diverse challenges regardin
Slide 27: ESG-related topics: Governance
Key Topics in FY2022 1Q (Excerpted from Press Releases) ESG-related topics: Governance Partially modified from Compass Action (Nov. 26, 2021) The Tokyo Gas Group transitioned to a holdings group structure as of April 2022 to become an organization that brings change to the LNG value chain while each
Slide 28: Overseas Projects
Overseas Projects 28 ° e O60 e % 5 ‘Area___No__Country Subject Main Business Participation year Ford Upstream Shale gas 2016 TG Natural Resources Upstream Shale gas 2017 @ usa TSS America Downstream Energy Service 2015 'S-ABirdsboro Power Plant Downstream Natural gas power 2017 North America Aktina
Slide 29: Changes in Disclosable Segments
Changes in Disclosable Segments (mapping of key changes) 29 H + 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 FY20
Slide 30: Cautionary Statement regarding Forward-looking Statements
"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 the