Chubu Electric Power Company,incorporated · TSE:9502
Chubu Electric Power Company,incorporated — Q1 FY2012 Earnings Presentation
52 slides from Chubu Electric Power Company,incorporated's earnings presentation, August 2012
Slide 1: Investors Meeting 1st Quarter FY 2012
I Investors t M Meeting ti 1st Quarter, Q t FY 2012 August 2012 August, Note: The Company Company'ss fiscal year (FY) is from April 1 to March 31of the following year year. FY2012 represents the fiscal year began on April 1, 2011, and ends on March 31, 2013. 1st Quarter (1Q) represents three months
Slide 2: Table of Contents
Table of Contents I Management Situation Progress of the Tsunami Countermeasures at Hamaoka Nuclear Power Station 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 1 Extension of Time for Completing Tsunami Countermeasures at Hamaoka Nuclear Power Station 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 2 Future efforts based on the revision of seismic source model 䞉䞉䞉䞉䞉䞉䞉䞉䞉
Slide 3: I Management Situation
I Management g Situation © 2012 Chubu Electric Power Co., Inc. All rights reserved.
Slide 4: Progress of the Tsunami Countermeasures at Hamaoka Nuclear Power Station
Progress of the Tsunami Countermeasures at Hamaoka Nuclear Power Station 1 We have W h b been iimplementing l i the h Tsunami T i countermeasures at Hamaoka H k Nuclear N l Power P Station S i that h we worked k d out in July 2011 with the aim to complete the construction works in December 2012. How
Slide 5: Extension of Time for Completing Tsunami Countermeasures at Hamaoka
Extension of Time for Completing Tsunami Countermeasures at Hamaoka Nuclear Power Station 2 -Increased Construction Cost for Tsunami Countermeasures at Hamaoka Nuclear Power Station(announced on March,2012) High ground - Emergency AC power supply equipment(gas turbine generator) installation on high
Slide 6: Future efforts based on the revision of seismic source model
Future efforts based on the revision of seismic source model 3 - "Committee for Modeling a Nankai Trough Megaquake" primary evaluation 䠄maximum seismic intensity and heights of tsunami in Omaezaki City䠅 -The Cabinet Office released its predictions on maximum seismic intensity levels and tsunami heig
Slide 7: Revision of the electric power supply plan
Revision of the electric power supply plan 4 - Outline of sales p plan - Electricity sales are planned as 136.8 TWh in FY 2021 – a 0.5% in average annual growth (value corrected for temperature). 䡡 We assume that the volume of energy gy conserved will be 2.0 TWh in FY 2012. - System peak load is pla
Slide 8: Supply and Demand Outlook for Summer 2012 (August)
Supply and Demand Outlook for Summer 2012 (August) 5 - Peak load (g (generation end)) for summer FY 2012 -We assume that peak load will increase to 25,670 MW, up 650 MW from FY 2011 by taking into account the establishment of customers’ awareness of energy conservation, etc. Breakdown of difference
Slide 9: Additional Fuel Procurement
Additional Fuel Procurement 6 - Outlook for Fuel Procurement in FY 2012 - It I is i difficult diffi l to estimate i how h muchh LNG we needd to procure in i FY 2012, 2012 because b the h premises for our estimation have not been determined. - If we assume that approximate pp 13 million tons of LNG s
Slide 10: Fund Raising
Fund Raising 7 - Results for fund raising in FY 2011 and Progress of fund raising in FY 2012 䠄Billion yen䠅 Other sources JBIC 100.0 billion y yen approx. 300 0 300.0 approx. DBJ 820.0 150.0 billion yen (Finished 3 main banks fund raising) 3 main banks 250.0 billion yen approx. 250.0 billion yen 300.
Slide 11: II Outline of Financial Results for Three-Months Ended June 30, 2012
ϩOutline of Financial Results for Three-Months Ended June 30,, 2012 © 2012 Chubu Electric Power Co., Inc. All rights reserved.
Slide 12: Summary of Financial Results <1>
Summary of Financial Results <1> 8 In the latest 1Q (settlement of accounts for 1Q has been conducted since 2003) , we recorded an operating, ordinary and net loss for the first time for both consolidated and non-consolidated results. [Consolidated] (Billion yen,%) 2012/1Q 2011/1Q Change (A) (B) (A-
Slide 13: Summary of Financial Results <2>
Summary of Financial Results <2> 㻥 9 < year-on-year comparison Factors F t for f change h iin consolidated lid t d ordinary di income i (loss) (l ) > - Increase in electricity sales volume + 5.9 billion yen (with subtraction of fuel expenses) - Decrease in nuclear power output - 25.6 25 6 billion ye
Slide 14: Consolidated Financial Standing
Consolidated Financial Standing 10 (Billion yen) 2012.6 2012.3 Change Major factors for change (A) (B) (A-B) (A B) Assets 5,627.4 5,647.1 -19.7 Decrease in short-term investments Liabilities 4 113 7 4,113.7 4 098 8 4,098.8 14 9 14.9 -Increase Increase in interest-bearing interest bearing debt -Divid
Slide 15: Forecasts for FY 2012
Forecasts for FY 2012 11 The Company does not provide financial forecasts (operating revenue, operating income, ordinary income and net income) for FY 2012 because the Company is unable to rationally forecast its business performance based on certain assumptions, since it is difficult to predict the
Slide 16: The Policy on Shareholder Return
The Policy on Shareholder Return 12 We decided at the board of directors meeting held on July 30, 2012 to change “The Policy on Shareholder Return” and the forecast of dividends for FY 2012 as follows. - The Th Policy P li on Shareholder Sh h ld R Return t The Company will work to maintain stable di
Slide 17: III Reference Data
Ϫ Reference Data Safety Measures at Hamaoka Nuclear Power Station 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 13 Fuel Procurement (FY 2011) 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 31 g Outline of Countermeasures against Tsunami at LNG Contracts 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 32 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 14 Hamaoka Nuclear Power Station Advancement of Coal Trading 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 33 Inundation Preven
Slide 18: Safety Measures at Hamaoka Nuclear Power Station
Safety Measures at Hamaoka Nuclear Power Station 13 - Actions taken before the Great East Japan Earthquake - We set the target resistance of buildings (to about 1,000 gals on a bedrock), and implemented safety measures, including seismic retrofitting works for Units 3 to 5. - Actions taken after the
Slide 19: Outline of Countermeasures against Tsunami at Hamaoka Nuclear Power Station
Outline of Countermeasures against Tsunami 14 at Hamaoka Nuclear Power Station 㻙 Outline of countermeasures against tsunami at Hamaoka Nuclear Power Station (Announced in July 22, 2011) - To “prevent inundation,” taking inundation-prevention measures for (1) the power station premises, including the
Slide 20: Inundation Prevention <1>
Inundation Prevention <1> 15 - Outline of "Inundation Prevention(1)" ( ) (p (power station p premises)) - Preventing inundation caused by tsunami direct entry into power station premises - Taking measures to control seawater overflow from the water intake chambers etc., d to due t the th water t ris
Slide 21: Inundation Prevention <2>
Inundation Prevention <2> 16 - Outline of "Inundation Inundation Prevention (2) (2)" (Inundation of building) - If tsunami overtops the breakwater and the premises are inundated; - The seawater intake pumps outside of housing may be submerged and stopped, and the nuclear facility coolingg system y u
Slide 22: Reinforcing Emergency Measures
Reinforcing Emergency Measures 17 - Outline of "Reinforcing Reinforcing Emergency Measures" (Maintaining seawater cooling function) - A safe and secure cold shutdown system should be prepared by "securing cooling function", even assumingg “loss of all AC ppower supplies” pp and “loss of seawater coo
Slide 23: Construction of Breakwater
Construction of Breakwater 18 - Breakwater Construction Plan - A breakwater wall of T.P. +18 meters in height and about 1.6 kilometers in total length will be constructed behind and to the flank of the sand dunes facing the ocean on the plant premises. Also, at the both ends of the wall, embankment
Slide 24: Progress in Breakwater Construction
Progress in Breakwater Construction 19 -The Th construction t ti off the th breakwater b k t foundation f d ti excluding l di special i l shaped h d parts t was completed l t d on June J 16, 16 2012. 2012 - Floor slabs and vertical walls that consist of the wall section for the breakwater are being
Slide 25: Seawater inflow via damaged tubes in the main condenser for Hamaoka Reactor No.5
Seawater inflow via damaged tubes in the main condenser for 20 Hamaoka Reactor No.5 Fact - 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 g which seawater flowed to cool steam,, was damaged. g 400 tons of se
Slide 26: Comprehensive Assessment on the Safety Performance (Stress Test)
Comprehensive Assessment on the Safety Performance (Stress Test) 21 - Outline of the Comprehensive p Assessment on the Safety y Performance ((Stress Test)) Primary assessment Secondary assessment Those reactors which completed a periodic All reactors and power generation facilities (including those
Slide 27: Development of LNG Thermal Power Plants with Enhanced Efficiency
Development of LNG Thermal Power Plants 㻝㻡 22 with Enhanced Efficiency - Outline of development of LNG thermal power plants with enhanced efficiency 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (FY) 䕰Mar.-07: construction started 䕰Jul.-12: operation to start Joetsu Group NoN
Slide 28: Reinforcement Plan for LNG Handling Facilities
Reinforcement Plan for LNG Handling Facilities 㻝㻢 23 - Supporting S ti stable t bl yett fl flexible ibl LNG procurementt 䐟Additional LNG tanks & reinforcement to LNG 䐠 䐠Installation of ggas receiving dock Shin-Nagoya pipeline across Ise Bay 䐢Installation of ( for Toho Gas Co.) Kawagoe Mie-Shiga pipe
Slide 29: Actions at Thermal Plants against Earthquakes <1>
䠍 Actions at Thermal Plants against Earthquakes <1> 24 - In accordance with obligations g to ensure safety y in the maintenance of electric facilities under the Electricityy Business Acts, thermal plants are designed to contain damage within the plant premises and ensure public safety, even if an ea
Slide 30: Actions at Thermal Plants against Earthquakes <2>
Actions at Thermal Plants against Earthquakes <2> 25 䠍 - Measures been taken at thermal plants Safety measures Improvement of aseismic resistance Even if a large earthquake causes Priority will be placed on measures to improve aseismic resistance of power plants damage g to main facilities, the and
Slide 31: Strengthen Mutual Support among Power Companies
Strengthen Mutual Support among Power Companies 䠍 26 - Higashi Shimizu FC: efforts to accelerate commencement of 300MW operations - Revised schedule for 300 MW operation after the Great East Japan Earthquake FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 and beyond Previous plan 100 MW 300MW A l Accelerati
Slide 32: Efforts toward Promotion of Renewable Energy <1>
Efforts toward Promotion of Renewable Energy <1> 27 䕔 Governmental efforts toward promotion of Renewable Energy The Excess Electricity Purchasing Feed-in Tariff Scheme for Scheme for Photovoltaic Power Renewable Energy (Implementation from November 1,2009) 㸦Implementation from July 1,2012㸧 -Excess e
Slide 33: Efforts toward Promotion of Renewable Energy <2>
Efforts toward Promotion of Renewable Energy <2> 28 㻝㻡 - Details for promotion of renewable energy *1 Output CO2 reduction Detailed plans Operation commences (MW) (t-CO2 / year) Mega Solar Iida 1 400 FY 2010 olar Mega Solar Taketoyo 75 7.5 3 400 3,400 FY 2011 So Mega Solar Shimizu 8 4,000 FY 2014 (P
Slide 34: Reduction of CO2 Emissions
Reduction of CO2 Emissions 29 -Initiatives I iti ti on reduction d ti off CO2 emission i i -Promote the adoption of power generation using renewable energy -Improving thermal efficiency of thermal power -Participate in CO2 reduction projects in developing countries -Heighten awareness of energy cons
Slide 35: Composition of Power Sources and Electric Energy Output
Composition of Power Sources and Electric Energy Output 30 - Composition of Power Sources (GW) 0 10 20 30 40 2010 12% 13% 41% 15% 19% 2011 (FY) 12% 13% 41% 15% 19% Nuclear Coal LNG Oil etc. Hydro *Renewable energy is less than 1%. - Composition of Electric Energy Output (TWh) 0 40 80 120 160 2010 15
Slide 36: Fuel Procurement (FY 2011)
Fuel Procurement (FY 2011) 31 Yemen 1.4 Peru 1.1 (%) Malaysia 2.3 Others 0.9 Russia 4.4 Africa 5.4 Australia 8.3 Indonesea LNG Indonesea Coal Australia 8.4 Qatar Q t (13.123 mil. t) 63.5 41.6 (9.689 mil. t) 54.0 Russia 8.7 Others 5.1 Malaysia Kazakhstan 12.0 16.7 Crude Gabon Indonesea Uranium Austra
Slide 37: LNG Contracts
LNG Contracts 32 - Principal p LNG Contracts ( ,000 t/yea (1,000 t/year)) Contract volume Projects / <delivery> Period of contract (approximate figure) Qatar / <Ex-ship> 1997 - 2021 (approx.25 years) 4,000 Australia (extension) / <Ex-ship> 2009 - 2016 (approx.7 years) 500 Contraccts ng Existin A Aus
Slide 38: Advancement of Coal Trading
Advancement of Coal Trading 33 - Coal tradingg business -Chubu Electric and Electricite de France’s subsidiary EDFT each established 100% subsidiaries in Japan and started fuel trading business under partnership agreement in FY2008. -Effective in April, 2010, Chubu Energy Trading controls Chubu Ecle
Slide 39: Acquisition of Interests in Energy Resources
Acquisition of Interests in Energy Resources 34 Project Outline of project and interest Participation and its purposes - Major interest holders - Participation 䚷Shevron, Shell, Exxon Mobil, etc. 䚷Interest holding ratio 0.417% Gorgon (Australia) - Project output capacity - Purposes/effects 䚷Approx. A
Slide 40: Overseas Business Deployment
Overseas Business Deployment 35 - Outline of overseas business Investment amount Output based on Chubu's stake* (approximate) At the end of FY 2011 Cumulative total 90 billion yen Cumulative total 3,240 MW * represents Chubu's stake in total output of whole projects it participates - Projects in par
Slide 41: Sales Strategy
Sales Strategy 36㻢 -Proposals Proposals for household customers Proposals offering households the versatility available with electricity, including solar power, electric vehicles, etc., in addition to heat pump equipment such as the EcoCute, which offers a high level of gy savings energy g - Proposa
Slide 42: Electricity Business Environment <1>
Electricity Business Environment <1> 37 -Timetable Timetable for Establishment of Energy Policy Theme FY 2011 FY 2012 (relevant organizations) 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Electricity system reform 䕰Dec. 27 (The Task Force on the Reform of Major issues Electric Power Systems) for discussion 䕰
Slide 43: Electricity Business Environment <2>
Electricity Business Environment <2> 38 - Other External environments FY 2011 FY 2012 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 -Fukushima Daiichi STEP 2 medium-term action assignment nuclear p power station 䕦 Dec. Dec 16 Cold Sh Shutdown tdo n declaration accident control 䕰Dec. 26 Interim report 䕰Jul. 23
Slide 44: Outline of the basic policy (draft) on Electric Power System Reform
Outline of the basic policy (draft) on Electric Power System Reform 䠍39 - Outline of the basic policy on Electric Power System Reform(announced on July 13, 13 2012䠅 -Full liberalization of electricity retail sales Liberalize retail sales of electricity (including sales to homes) to abolish regional
Slide 45: The Act to Establish a Nuclear Damage Compensation Facilitation Corporation
The Act to Establish a Nuclear Damage Compensation Facilitation Corporation 40 - Overview of the Act to Establish a Nuclear Damage g Compensation p Facilitation Corporation p - Given the possibility of large damage compensation requirements, nuclear power operators will establish the following syste
Slide 46: Outline of advisory conference concerning review of electricity rates system
Outline of advisory conference concerning review of electricity 41 rates system and its operation - Outline of the report (announced on March 21, 2012䠅 -Introduce a competitive bidding system for infrastructure projects: new construction, capacity Promotion of expansion, and maintenance of thermal p
Slide 47: Fuel cost adjustment system and thermal fuel cost
Fuel cost adjustment system and thermal fuel cost 42 <Diagram Di off impacts i t off thermal th l ffuell costt on th the F Fuell C Costt Adj Adjustment t tSSystem> t Price Monthly fluctuations in fuel prices are reflected in unit prices of electricity as prescribed by the Fuel Cost Adjustment System
Slide 48: Smart Meter
Smart Meter 43 㻝㻡 -Progress Progress of argument regarding the introduction of smart meters “Tentative plan for the energy supply-demand “Basic Energy Plan” decided at the cabinet balance (draft)” (finalized by the Energy and meeting (June 18, 18 2010) E i Environment t Council C il on July J l 29,
Slide 49: Retirement Benefit Cost (Non-consolidated)
Retirement Benefit Cost (Non-consolidated) 44 䕔Actuarial Differences (billion yen䠅 Amount of amortization Change Recorded amounts Recorded To be recorded 䠄䕧:Excess year ear FY2010(A) as eextraordinary traordinar FY2011(B) FY2012(C) (B) (A) (B)䠉(A) (C) (B) (C)䠉(B) amounts reserved䠅 loss* FY2007 63䠊9
Slide 50: Free Cash Flow (Non-consolidated)
Free Cash Flow (Non-consolidated) 45 (billion yen) 500 Free cash flow 426.0 400 376 7 376.7 Subtraction of capital expenditure from depreciation 300 276.8 229.0 237.4 191.2 189.4 200 142.8 142.6 90.1 94.3 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (FY) -100 100 -95.4 -200 -300
Slide 51: Shareholders' Equity Ratio, Debt - Equity Ratio
Shareholders’ Equity Ratio, Debt - Equity Ratio 46 - Shareholders’ equity ratio - Debt - equity ratio 䠄x䠅 35% 5 ಶู 㐃⤖ ಶู 㐃⤖ 30% 4 25% FY2010 31.1䠂 FY2011 20% 䠄consolidated䠅 3 1.7䠄consolidated䠅 FY2011 15% 26.8䠂 2 䠄consolidated䠅 10% FY2000 FY2000 1 4.0䠄consolidated䠅 5% 17.9䠂 䠄consolidated䠅 FY2010 1.5䠄
Slide 52: DISCLAIMER
DISCLAIMER This presentation Thi t ti contains t i assumptions ti andd forward-looking f d l ki statements t t t with ith respect to the financial conditions, and forecasts of the company, which are based on information currently available. These assumptions involve certain risks and uncertainties,
Chubu Electric Power — Q1 FY2012 Earnings Presentation on 6ix