Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — Q1 FY2021 Earnings Presentation
24 slides from Tokyo Gas's earnings presentation, Jul 28, 2021
Slide 1: FY2021 1Q Financial Results
FY2021 1Q Financial Results ended June, 2021 July 28, 2021 "E TOKYO GAS TSE:9531
Slide 2: FY2021 Consolidated Financial Results
o1 FY2021 Consolidated Financial Results ended June, 2021 "RTOKYO GAS
Slide 3: Both sales and profits decreased in 1Q FY2021
Both sales and profits decreased in 1Q FY2021. Net sales decreased by ¥7.4 billion. This was mainly attributable to a decrease in city gas unit price due to gas rate adjustments of the gas segment. Operating expenses decreased by ¥5.1 billion. This mainly reflected the effect of the decline in crude
Slide 4: City gas sales volume in 1Q FY2021 increased 7.1%
The city gas sales volume in 1Q FY2021 increased 7.1%. It decreased 2.5% due to the temperature effect, such as high temperatures in April, while sales volume to industrial customers increased 28.4%. This was mainly attributable to the acquisition of power generation customers. The impact of COVID-1
Slide 5: Total electricity sales volume in 1Q increased 12.0%
Total electricity sales volume in 1Q increased 12.0%. Despite a rise in sales volume due to an increase in the number of customers, retail electricity sales decreased 2.6% as a result of changes in the accounting standard for revenue recognition. The drop due to the change in the accounting standard
Slide 6: Net sales and segment profit by segment
Slide 6 shows net sales by segment and segment profit, which is operating profit plus equity income/loss of subsidiaries, and changes thereof. The main factor for the segment profit was the decrease of ¥6.5 billion in the gas segment. 6
Slide 7: Gas segment profit dropped ¥6.5 billion
The ¥6.5 billion drop in profit of the gas segment mainly reflected a drop in gross margin due to a decrease in sales volume owing to the temperature effect and the greater sliding time lag effect caused by resource price fluctuation, and a rise in fixed costs due to an increase in depreciation. In
Slide 8: FY2021 Full Year Forecast
02 FY2021 Full Year Forecast "R TOKYO GAS
Slide 9: FY2021 full-year forecast: increase in both sales and profit
For the FY2021 full-year, we are forecasting an increase in both sales and profit. The economic framework for July onward, which serves as a basis of our forecast, has been changed as follows: the foreign exchange rate has been revised from ¥105/$ to ¥110/$ and crude oil price has been revised from
Slide 10: 9
9
Slide 11: City gas sales volume forecast
This slide shows our forecast of city gas sales volume, which is the basis of our full-year forecasts. We expect city gas sales volume to be 1.8% more than our previous forecast. The main factor for the increase is the expected increase in sales volume in areas other than residential, such as a rise
Slide 12: Electricity sales volume forecast
This slide shows our electricity sales volume forecast. We expect electricity sales volume to be 3.5% more than our previous forecast, which is mainly attributable to an increase in wholesale and other electricity sales volumes. 11
Slide 13: Segment sales and profit forecasts
This slide shows segment sales and profit forecasts and changes from the previous forecasts. We expect segment profit to be ¥8.3 billion more than the previous forecast. 12
Slide 14: Changes in segment forecasts from previous forecast
We expect a ¥2.6 billion decrease in the gas segment forecast compared to the previous forecast. This is mainly attributable to an expected drop in gross margin due to a greater sliding time lag effect owing to resource price fluctuation and an expected increase in fixed costs, including depreciatio
Slide 15: FY2021 Forecast: Sales and Operating Profit by Business Segment
vs. FY2020 FY2021 Full Year Forecast: sales and Operating Profit/Loss by Business Segments 1 4 H (unit: billion yen) rag Segment Profit(Operating profit + Equity income/loss of subsidiary) FY2021 FY2020 FY2021 FY2020 Forecast Results Change * Forecast Results Change % Gas 1,261.5 1,146.7 114.8 10.0
Slide 16: FY2021 Forecast: Ordinary Profit Analysis
FY2021 Forecast: Ordinary Profit Analysis “Recut 1 5 H . City, Gas -¥25.0bn Decrease in gross margin -¥18.3bn: Change in volume, etc. -7.9 (incl. change due Gas to temp effect +1.5), sliding time lag effect -10.4 7 (Net sales) +465 0bn: Change in volume, etc. -40.9, sliding time lag effect +105.9 fr
Slide 17: Expected use of cash flow in FY2021
This slide details the expected use of cash flow in FY2021. 16
Slide 18: Key indicators on a consolidated basis
This slide shows key indicators on a consolidated basis. 17
Slide 19: Reference materials
The following reference materials include a table on the sensitivity to the economic framework assumption, plus the trend of crude oil prices and the exchange rate, a list of major year-to-date press releases, and a list of major overseas investment projects, etc. 18
Slide 20: Sensitivity to Crude Oil Price and Exchange Rate
ide Oil Price and Exchange Rate 19 wl (Unit: billion yen) Impact on earnings 2Q 3Q 4Q Full year 2Q -0.1 -0.8 +0.5 -0.4 3Q _ -0.1 -0.9 -1.0 Period 4Q ~~ _ -0.1 -0.1 Full year -0.1 -0.9 -0.5 15 Impact of depreciation by ¥1/$ (Unit: billion yen) 2Q 3Q 4Q Full year 2Q -0.5 +0.5 +0.3 +0.3 3Q _ -0.7 +0.5
Slide 21: Crude oil price - Exchange rate
rude oil price - Exchange rate 208 Crude oil price (Japan Crude Cocktail Prices) ($/bb!) 80.00 70.00 60.00 50.00 40.00 30.00 20.00 ¢ eS Ss SF y me-FY2021 eFY2020 meet ¥2019 og eS F Exchange rate (ys) 115.0 110.0 105.0 100.0 N " ‘ ¢ £ g ms s 012021 -9F¥2020 seeFP2019 og
Slide 22: Key Topics in FY2021
Key Topics in FY2021 (Excerpted from Press Releases up to 28th July.) ‘Management Strategy {including ES6) + Notice regarding Partial Changes to Articles of Incorporation (Apr. 28) + Notice regarding determination of matters concerning share acquisitions under the share-based compensation plan (Jul.
Slide 23: Overseas Projects
Overseas Projects e 900 ° % ° ‘Area__No__ Country Subject Main Business Participation year Barnett Upstream Shale gas 2013 Eagle Ford Upstream Shale gas 2016 TG Natural Resources Upstream Shale gas 2017 @ —USA_—_TGES America Downstream Energy Service 2015 Birdsboro Power Plant Downstream Natural gas
Slide 24: 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