Chubu Electric Power Company,incorporated · TSE:9502

Chubu Electric Power Company,incorporated — FY2015 Earnings Presentation

65 slides from Chubu Electric Power Company,incorporated's earnings presentation, May 2016

1. Slide 1: Investors Meeting for the year ended March 31, 2016

   Investors Meeting for the year ended March 31, 2016 May, 2016

2. Slide 2: INDEX

   INDEX Outline of Financial Results for Fiscal Year ended March 31, 2016 01 Summary of Financial Results <1> ҩҩҩҩҩҩҩҩҩҩҩҩҩҩҩ01 Summary of Financial Results <2> ҩҩҩҩҩҩҩҩҩҩҩҩҩҩҩ02 Electricity Sales Volume ҩҩҩҩҩҩҩҩҩҩҩҩҩҩҩ03 Generated and Received Power ҩҩҩҩҩҩҩҩҩҩҩҩҩҩҩ04 Summary of Forecast for FY2016 ҩҩ

3. Slide 3: Outline of Financial Results for Fiscal Year ended March 31, 2016

   Outline of Financial Results for 01 Fiscal Year ended March 31, 2016 Note: The Company’s fiscal year (FY) is from April 1 to March 31 of the following year. FY2015 represents the fiscal year begun in April 1, 2015, and ended in March 31, 2016. Copyright © CHUBU Electric Power Co.,Inc. All Right Rese

4. Slide 4: Blank Space

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5. Slide 5: Summary of Financial Results <1>

   01 Summary of Financial Results <1> „ Operating revenues decreased following FY2009, for the first time in 6 years. „ Ordinary income increased for two consecutive years since FY2014 „ We recorded decreased sales and increased profit following FY2009, for the first time in 6 years. [Consolidated] (B

6. Slide 6: Summary of Financial Results <2>

   02 Summary of Financial Results<2> <Consolidated ordinary income> On electric power business, consolidated ordinary income increased 195.4 billion yen compared with FY2014, due to expansion of accrued income incurred by fuel cost adjustment system and decrease in fuel cost, affected by the fall of f

7. Slide 7: Electricity Sales Volume

   03 Electricity Sales Volume <Demand from customers under regulation> 凑 Electric lighting : Dropped by 3.1% to 32.8TWh, compared with FY 2014, due to a decrease in air conditioning demand by warmer temperature in this winter and customer’s power saving effect. 凑 Electric power : Dropped by 4.4% to 5.

8. Slide 8: Generated and Received Power

   04 Generated and Received Power „ Hydro : Thanks to higher water flow, hydro power output increased by 0.8TWh. (flow rate for FY2015:114.4%, FY2014:104.6%) „ Interchanged, purchased Power : Increased by 2.7TWh, due to an increase in purchase of renewable energy. „ Thermal : As a result above and due

9. Slide 9: Summary of Forecast for FY2016

   05 Summary of Forecast for FY2016 ْConsolidatedٓ (billion yen) FY2016 FY2015 Change (Forecast) (A) (Result) (B) (A-B) Operating revenue 2,620.0 2,854.0 approx. (234.0) Operating income 150.0 284.9 approx. (135.0) Ordinary income 130.0 255.6 approx. (126.0) Net Income attributable to owners of parent

10. Slide 10: Consolidated Forecast for FY2016 (compared to FY2015)

    06 Consolidated Forecast for FY2016 (compared to FY2015) [Main factors contributing to year-on-year change in Consolidated ordinary income] 凑 Impact of accrued income -125.0 billion yen 凑 Promotion of management efficiency 15.0 billion yen 凑 Others -15.6 billion yen ‫ق‬ELOOLRQ\HQ‫ك‬ Impact of accrue

11. Slide 11: (Reference) Impact of accrued income by fuel cost adjustment system in FY2016

    07 (Reference) Impact of accrued income incurred by fuel cost adjustment system in FY2016 )< )< ,QFRPH ,QFRPH ELOOLRQ ELOOLRQ $YHUDJH)XHOSULFH EDVLVRIIXHOFRVWDGMXVWPHQWFKDUJH )XHOSURFXUHPHQWSULFH $SU 2FW $SU 2FW Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

12. Slide 12: The Policy on Shareholder Return

    08 The Policy on Shareholder Return ْDividend Forecastٓ „ The Company will work to maintain stable dividends after taking account of financial condition and other factors, while continuously investing in building and operating facilities that are essential for a safe and stable supply of electricity

13. Slide 13: Management Situation: What We Aim For

    Management Situation 02 ‟What We Aim For” Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

14. Slide 14: Management Vision

    09 Management Vision 凑 We will aim to become a “total energy service corporate group that is one step ahead.” Chubu Electric Power Group : “What We Aim For ರ As a leading company that provides services that exceed expectations to customers ahead of our competitors, we will aim to become a “total ene

15. Slide 15: Mid-term target toward the achievement of What We Aim For

    10 Mid-term target toward the achievement of ‟What We Aim For” (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

16. Slide 16: Launch of the Internal Company System

    11 Launch of the Internal Company System „ :HHVWDEOLVKHGD冾3RZHU*HQHUDWLRQ&RPSDQ\| 冾3RZHU1HWZRUN&RPSDQ\|DQGD冾&XVWRPHU6HUYLFH 6DOHV&RPSDQ\| WRPDNHVZLIWDQGIOH[LEOHUHVSRQVHVWRFKDQJHVLQWKHEXVLQHVVHQYLURQPHQWLQ$SULO „ :HVHOHFWHG&RPSDQ\3UHVLGHQWVGHOHJDWHGH[HFXWLYHDXWKRULW\RYHURSHUDWLRQVDQGZRUNWRDFKLHYHLQGH

17. Slide 17: Management Situation: Specific efforts toward What We Aim For

    03 Management Situation : Specific efforts toward the achievement of ‟What We Aim For” Spe Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

18. Slide 18: Development of high efficiency Thermal Power Plants

    㻝㻡 5 12 Development of high efficiency Thermal Power Plants ƂOperation Schedule for High-Efficiency 䛆Outline of development of high efficiency thermal power plants䛇 (FY) Combined-Cycle Power Generation Systemsƃ 2013 2014 2015 2016 2017 2018 䞉䞉䞉䞉䞉䞉 2021 Nishi-Nagoya Taketoyo Thermal Thermal Power Pow

19. Slide 19: TEPCO and Chubu Electric Comprehensive Alliance: Establishment of JERA

    13 TEPCO and Chubu Electric to form Comprehensive Alliance : Establishment of JERA Co., Inc. and ‟What we aim for” „ 7RN\R(OHFWULF3RZHU&RPSDQ\,QFRUSRUDWHG KHUHLQDIWHUn7(3&2| DQG&KXEX(OHFWULFHVWDEOLVKHGn-(5$&R ,QF|HIIHFWLYHIURP$SULODVDQHZFRPSDQ\WKDWLPSOHPHQWVnDFRPSUHKHQVLYHDOOLDQFHFRYHULQJWKH HQWLUHH

20. Slide 20: (Reference) Scope of Comprehensive Alliance

    14 (Reference) Scope of Comprehensive Alliance ْ6FRSHRI&RPSUHKHQVLYH$OOLDQFHٓ 2YHUVHDVSRZHU JHQHUDWLRQ *DVZKROHVDOLQJ (QHUJ\ /1*VXSSO\ LQIUDVWUXFWXUH 7KHUPDOSRZHU JHQHUDWLRQ ([LVWLQJ 5HFHLSWDQG *: 7UDQVSRUWDWLRQ VWRUDJH TEPCO 8SVWUHDPIXHO )XHO LQYHVWPHQW SURFXUHPHQW 7UDGLQJ WHUPLQDOV /1* Joint Expan

21. Slide 21: Sales strategy for further expansion of electricity and gas market share

    9 15 Sales strategy for further expansion of electricity and gas market share „ In response to full liberalization of the retail power market that commenced in April 2016, we will continue to deploy nNew services for customers using the companybs electricity,| nBusiness expansion in the Tokyo metrop

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23. Slide 23: Hamaoka Nuclear Power Station<1>: Further effort for Safety Enhancement Measures

    Hamaoka Nuclear Power Station<1>: 16 Further effort for Safety Enhancement Measures „ Chubu Electric Power is now under review by the Nuclear Regulation Authority to ensure compliance with the new regulatory standards, and we will make united efforts to swiftly gain confirmation that our reactors ar

24. Slide 24: (Reference) Measures for risk reduction

    17 ‫ق‬Reference‫ك‬Measures for risk reduction „ No matter how much equipment measures and disaster management measures we enhance as initiatives toward the voluntary improvement of safety, the risks cannot be vanished. „ To achieve further reduction of the risks, it is important to make continuous e

25. Slide 25: Hamaoka Nuclear Power Station<2>: Onsite response

    18 Hamaoka Nuclear Power Station<2>‫؟‬ Measures for improving responses to nuclear disaster (onsite response) „ We will amplify field response and equipment measures geared towards enhancing safety, and work to prevent any offsite influence. „ To prepare against various situations developing from ma

26. Slide 26: Hamaoka Nuclear Power Station<3>: Offsite response

    Hamaoka Nuclear Power Station<3>: 19 Measures for improving responses to nuclear disaster (Response to offsite) „ Chubu Electric Power will continue to prevent accidents. We will also achieve stronger partnership with related organizations and both national and local governments, continue to work to

27. Slide 27: Reference Data (1) Financial Results

    Reference Data(1) 04 Financial Results Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

28. Slide 28: Non-consolidated Statements of Income<1>

    20 Non-consolidated Statements of Income<1> (Billion yen,%) FY2015 FY2014 Change 岧Major factors for Change岨 (A) (B) (A-B) (A-B)/B 凑 A decrease in fuel adjustment Electricity sales revenues 2,337.8 2,563.9 (226.1) (8.8) charge : -263.0 凑 An increase in surcharge for promoting renewable energy Sold po

29. Slide 29: Non-consolidated Statements of Income<2>

    21 Non-consolidated Statements of Income<2> (Billion yen,%) 岧Major factors for Change岨 FY2015 FY2014 Change (A) (B) (A-B) (A-B)/B Salaries and employee benefits 181.5 169.1 12.3 7.3 Fuel 805.6 1,316.4 (510.7) (38.8) 凑 Thermal : -510.7 A decrease in Nuclear back-end expenses 16.6 17.2 (0.5) (3.4) con

30. Slide 30: Non-consolidated Statements of Income<3>

    22 Non-consolidated Statements of Income<3> (Billion yen,%) 岧Major factors for Change岨 FY2015 FY2014 Change (A) (B) (A-B) (A-B)/B Operating income 265.2 90.8 174.3 192.0 凑 Electricity business : +163.9 Non-operating revenues 13.8 14.0 (0.1) (1.1) 凑 Incidental business : +10.4 Non-operating expenses

31. Slide 31: Consolidated Statements of Income

    23 Consolidated Statements of Income (Billion yen,%) FY2015 FY2014 Change (A) (B) (A-B) (A-B)/B Electricity business 2,570.9 2,799.2 (228.3) (8.2) Revenues Other business 283.0 304.3 (21.2) (7.0) 2,854.0 3,103.6 (249.5) (8.0) Electricity business 262.6 95.8 166.7 174.0 Operating income Other busines

32. Slide 32: Segment Information

    24 Segment Information (Billion yen,%) FY2015 FY2014 Change (A) (B) (A-B) (A-B)/B Electricity business 2,570.9 2,799.2 (228.3) (8.2) Other business 283.0 304.3 (21.2) (7.0) Revenues <Energy business> <87.3> <107.3> <(19.9)> <(18.6)> <Other business> <195.7> <197.0> <(1.2)> <(0.7)> 2,854.0 3,103.6 (2

33. Slide 33: Consolidated Financial Standing

    25 Consolidated Financial Standing „ $VVHWV Noncurrent assets increased 81.4 billion yen from the end of FY2014, due to an increase in investments and other assets. Current assets decreased 174.4 billion yen from the end of FY2014, due to decrease in short-term investments. As a result of the above,

34. Slide 34: Consolidated Statements of Cash Flows

    26 Consolidated Statements of Cash Flows „ Cash flows from operating activities Increased 85.5 billion yen from the previous year, because of such factors as a decrease of fuel expenses following a fall of fuel prices, in spite of a decrease in electricity sales revenues due to electricity sales vol

35. Slide 35: Fund Raising

    27 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 130 billion yen in long-term funding in FY2015. „ We plan to raise approximately 400 billion yen in long-term funding in FY2016. 820.0 (

36. Slide 36: Cash Flow (Non-consolidated)

    28 Cash Flow (Non-consolidated) ‫ق‬%LOOLRQ\HQ‫ك‬ Cash Flows from Operating Activities Cash Flows from Investing Activities FCF 800.0 608.9 600.0 563.4 548.6 556.9 523.6 522.2 550.9 402.6 424.1 420.1 443.2 400.0 333.8 426.0 270.0 376.7 214.4 200.0 146.0 181.3 278.5 229.0 237.4 276.8 191.2 142.8 189.4

37. Slide 37: Electric utility operating expenses (Non-consolidated)

    29 Electric utility operating expenses (Non-consolidated) 2WKHU 'HSUHFLDWLRQ 0DLQWHQDQFH 3XUFKDVHG3RZHU )XHO 6DODULHVDQGHPSOR\HHEHQHILWV ‫ق‬%LOOLRQ\HQ‫ك‬ (6%) (7%) (7%) (8%) (9%) (9%) (7%) (12%) (49%) (7%) (50%) (13%) (13%) (13%) (35%) (14%) (11%) (49%) (13%) (45%) (16%) (40%) (20%) (41%) (19%) (36%

38. Slide 38: Financial Ratio, Credit Ratings

    30 Financial Ratio, Credit Ratings 岧6KDUHKROGHUVbHTXLW\UDWLR岨 岧GHEWHTXLW\UDWLR岨 7LPHV 35.0 4.5 Non-Consolidated Consolidated Non-Consolidated Consolidated 4.0 30.0 27.0% (Non-Consolidasted) 3.5 25.0 3.0 2.1 Times (Non-Consolidasted) 20.0 2.5 15.0 28.9% 2.0 (Consolidated) 1.5 10.0 1.0 1.8 Times 5.0 0

39. Slide 39: Reference Data (2) Management Information

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

40. Slide 40: Schedule of the Electricity System Reform

    31 Schedule of the Electricity System Reform ْSchedule of the Electricity System Reformٓ Schedule for Schedule for implementing the measures enacted/submitting the bill 1st phase: Established on Enacted on Establishing the Organization for Nationwide Coordination of April 1, 2015 November 13, 2013 T

41. Slide 41: Reinforcement of the FC (Frequency converter)

    䠍 32 Strengthen Mutual Support among Power Companies 30 „ Reinforcement of the FC (Frequency converter) 凑 To reinforce 900MW FC capacity by the end of FY 2020 (from 1,200MW to 2,100 MW) . 凑 Furthermore, to increase up to total 3,000MW by the late 2020's. present End of FY2020 Late 2020’s 1,500MW Shi

42. Slide 42: Composition of Power Sources and Electric Power Output

    33 Composition of Power Sources and Electric Power Output ْComposition of Power Sourcesٓ 0 5 10 15 20 25 30 35 40 ‫*ق‬:‫ك‬ FY2010 12% 13% 41% 15% 19% FY2011 12% 13% 41% 15% 19% FY2012 11% 12% 43% 15% 19% FY2013 11% 13% 45% 12% 19% FY2014 11% 12% 46% 12% 19% FY2015 11% 12% 48% 9% 20% Nuclear Coal LNG

43. Slide 43: JERA<1>: Business Vision

    34 JERA<1>: Business Vision „ Based on the Comprehensive Alliance, we expect to create profitable opportunities by expanding of business area. „ In addition, we expect to improve competitiveness by optimizing the supply chain as a whole, from upstream investment and fuel procurement through power ge

44. Slide 44: JERA<2>: What we aim for in FY2030

    35 JERA<2>:What we aim for in FY2030 8 ƂQuantitative targetƃ (left : FY2016 right : FY2030) (billion yenᲣ Total Assets Sales Net Profit 2,800 1,180 860 760 600 250 280 70 Fuel Fuel Fuel Overseas Total Domestic Power Overseas Total Domestic Power Overseas Total Domestic Power Business Generation Busi

45. Slide 45: Fuel Procurement<1>: Outlook for Fuel Procurement in FY2016

    36 Fuel Procurement<1>: Outlook for Fuel Procurement in FY2016 ƂOutlook for fuel procurement (LNG)ٓ 凑 After the suspension of all the units of Hamaoka Nuclear Power Station, the Company has increased the utilization of thermal power plants, mostly LNG, to compensate for the loss of power output by n

46. Slide 46: Fuel Procurement<2>: LNG Contracts

    37 Fuel Procurement<2>: LNG Contracts ْ Principal LNG Contracts ٓ (1,000 t/year) Contract volume Projects / <delivery> Period of contract (approximate figure) Qatar1 / <Ex-ship> 1997 - 2021 (approx.25 years) 4,000 Australia (extension) / <Ex-ship> 2009 - 2016 (approx.7 years) 500 Australia (expansio

47. Slide 47: Fuel Procurement results of FY2015

    38 )XHO3URFXUHPHQW! 5HVXOWVRI)< Others 4.4 Canada Kazakhstan ‫ق‬٫‫ك‬ Russia Russia 3.2 0.7 4.6 3.2 Africa 6.9 Australia 13.8 LNG Qatar Indonesia Coal (12.505mil.t) 50.0 (10.169mil.t) Australia 37.6 55.3 Asia 20.3 )LJXUHVLQSDUHQWKHVHVUHSUHVHQWSXUFKDVHGYROXPH Copyright © CHUBU Electric Power Co.,Inc.

48. Slide 48: Trend of Large Industrial Power

    39 Trend of Large Industrial Power „ Dropped compared with FY2014, due to a decrease of production in the automobile industry, etc. ْ6DOHV9ROXPHRI/DUJH,QGXVWULDO3RZHULQ)< \HDURQ\HDUFKDQJH ٓ FY2015 (year-on-year change [%]) FY2015 Component sales volume 1H Oct Nov Dec Jan Feb Mar 2H FY rate(%) [GWh]

49. Slide 49: Overseas Business Deployment

    40 Overseas Business Deployment ْOutline of overseas businessٓ Investment amount(approximate)*1 Output based on Chubu’s stake*2 At the end of April 2016 Cumulative total 120 billion yen Cumulative total 3,300 MW *1 including investments which have already been committed to but not yet paid *2 repres

50. Slide 50: (Reference) Overseas IPP projects of TEPCO and Chubu Electric

    41 (Reference)Overseas IPP projects area of TEPCO and Chubu Electric „ We can expect complementary relationship because we have overseas IPP projects in different area. TEPCO Chubu Electric Region Country Output Output Project Project (MW) (MW) Aquisition of Tenaska's interest in gas thermal IPP(5 s

51. Slide 51: Sales Strategy<1>: New Tariff Menu

    42 Sales Strategy<1>ᲴNew Tariff Menu „ We will create attractive and competitive services, deliver valuable services worth more than the price (including safe, stable, and affordable energy services) to meet the needs of customers, and also meet customers’ expectations and gain their trust. Privileg

52. Slide 52: Sales Strategy<2>: Power generation & Sales in the Tokyo metropolitan area

    43 Sales Strategy<2>䠖Power generation & Sales in the Tokyo metropolitan area „ In the Tokyo metropolitan area, we will strengthen our sales system and secure power sources in order to aggressively expand our business since the area has a large market size and is an extremely attractive market with h

53. Slide 53: Sales Strategy<3>: Chubu Electric and INPEX Joint Power Supply Business

    44 Sales Strategy<3>: Chubu Electric and INPEX Enter Agreement on Joint Power Supply Business „ Chubu Electric and INPEX have entered a heads of agreement to consider a joint business operation to supply electricity, and they roll out a joint plan on the supply of electricity to city gas companies a

54. Slide 54: Sales Strategy<4>: Supplying Gas, LNG and On-Site Energy

    45 Sales Strategy<4> : Supplying Gas, LNG and On-Site Energy ْSupplying Gas, LNG and On-Site Energyٓ 凑 Collaborating with C Energy fully acquired, the Chubu Electric Group continues to offer energy services that combine gas, LNG and on-site energy to business customers. We support their goals to bui

55. Slide 55: Hamaoka Nuclear Power Station<1>: Progress of the NRA review

    Hamaoka Nuclear Power Station<1>: Progress of the Nuclear Regulation Authority’s review to verify compliance 46 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 Autho

56. Slide 56: Hamaoka Nuclear Power Station<2>: Enhancement of disaster management system

    Hamaoka Nuclear Power Station<2> : 47 Onsite response – Enhancement of disaster management system ‫ ۑ‬With drills and other activities, we are improving the initial response system, enhancing materials and equipment, and stepping up the competence of our personnel in a continued fashion. At the same

57. Slide 57: Hamaoka Nuclear Power Station<3>: Education and drills

    48 Hamaoka Nuclear Power Station<3>: Onsite responseٕEducation and drills „ Enhance and strengthen role-based training to step up the Response Center’s capabilities. „ $FWLYHO\LQFRUSRUDWHWKHNQRZOHGJHRIHWHUQDOSURIHVVLRQDOVLQWRWUDLQLQJ Target Major initiative after the Fukushima Daiichi accident occur

58. Slide 58: Hamaoka Nuclear Power Station<4>: Offsite response

    Hamaoka Nuclear Power Station<4> : Offsite responseٕ 49 Emergency communication methods to National and local governments „ Chubu Electric Power will dispatch personnel to the offsite center that was launched upon our notice. We will also offer information about the power station to address resident

59. Slide 59: Hamaoka Nuclear Power Station<5>: Activities to gain public understanding

    50 Hamaoka Nuclear Power Station<5>: Activities to gain public understanding „ 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 a package. „ The C

60. Slide 60: Hamaoka Nuclear Power Station<6>: Seawater inflow via damaged condenser tubes

    Hamaoka Nuclear Power Station<6>: Seawater inflow via damaged tubes in the main condenser 51 for Hamaoka Reactor No.5 ْFactٓ - 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 stea

61. Slide 61: Responses to Global Warming

    52 Responses to Global Warming „ The Company has been making efforts to reduce CO2 emission through comprehensive initiatives including the development of high efficiency thermal power generators and renewable energy to achieve a balanced power source composition. „ We intend to participate in the v

62. Slide 62: Renewable Energy<1>

    53 Renewable Energy<1>: Our efforts toward Promotion (Reference1) Development locations of hydroelectric power station (Reference)Chubu Electric Chubu Electric Conventional hydro Generation with minimum water level Group Parentheses denote the commercial operation start year. operating 196SiteᲴ5,497

63. Slide 63: Renewable Energy<2>: Application volume associated with connection

    Renewable Energy<2>‫؟‬ 54 The situation of application volume associated with connection „ Total electric volume of interconnected inverters plus application volume for connection to renewable energy generation facilities as of the end of March 2016 was approximately 9,670MW. эIn our service area, g

64. Slide 64: DISCLAIMER

    ',6&/$,0(5 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

65. Slide 65: Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

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

Chubu Electric Power Company — FY2015 Earnings Presentation on 6ix