Chubu Electric Power Company,incorporated · TSE:9502

Chubu Electric Power Company,incorporated — Q3 FY2019 Earnings Presentation

34 slides from Chubu Electric Power Company,incorporated's earnings presentation, Jan 31, 2020

  1. Slide 1: Presentation Materials for Investors 3rd Quarter FY2019

    Presentation Materials for Investors 3rd Quarter FY2019 January, 2020

  2. Slide 2: INDEX

    INDEX 01 Outline of Financial Results for Nine-Months ended December 31, 2019 02 Reference Data Summary of Financial Results ･･･････････････01 Segment Information ････････････09 Electrical Energy Sold ･･･････････････04 Consolidated Statements of Income ････････････10 Electric Power Supplied ････････

  3. Slide 3: Outline of Financial Results for Nine-Months ended December 31, 2019

    01 Outline of Financial Results for Nine-Months ended December 31, 2019 Note: The company’s fiscal year (FY) is from April 1 to March 31 of the following year. FY2019 represents the fiscal year begun on April 1, 2019, and ending on March 31, 2020. 3rd Quarter (3Q) represents nine months period ended

  4. Slide 4: Summary of Financial Results <1>

    01 Summary of Financial Results <1> <Points of Financial Results> (Consolidated)  Operating revenues: 2,280.7 billion yen Operating revenues increased by 81.5 billion yen compared with 2018/3Q, mainly due to an increase in fuel cost adjustment charge (+49.8 billion yen).  Ordinary income: 165.3 bi

  5. Slide 5: Summary of Financial Results <2>

    02 Summary of Financial Results <2> [Factors contributing to change in consolidated operating revenues] (Operating revenues increased by 81.5 billion yen) （Billion yen） 23,000 2,300.0 Others An increase in fuel cost adjustment charge 31.7 49.8 2,200.0 22,000 An increase in surcharge and grant under

  6. Slide 6: Summary of Financial Results <3>

    03 Summary of Financial Results <3> [Factors contributing to change in consolidated ordinary income] (Ordinary income increased by 74.9 billion yen) JERA (*1) Time lag (Excluding Time lag) （Billion yen） 1,800 180.0 -28.5 Others (60.6 → 32.1) 5.4 150.0 1,500 98.0 Impact of accounting method (*2) -15.

  7. Slide 7: Electrical Energy Sold

    04 Electrical Energy Sold <Electrical Energy Sold> (Nonconsolidated)  Decreased by 0.3TWh to 86.9 TWh compared with 2018/3Q, mainly due to a decrease in industrial production and an effect of switches made to other operators with the intensified compared with the previous year, in spite of a sales

  8. Slide 8: Electric Power Supplied

    05 Electric Power Supplied <Electric Power Supplied>（Nonconsolidated）  Hydro: The flow rate was lower than 2018/3Q; thus hydroelectric power output decreased by 0.4TWh.  Thermal: Thermal power plants have been transferred to JERA in April, 2019.  Purchased power: Increased by 78.2TWh, mainly due

  9. Slide 9: (Reference) Impact of Accrued Income (Result)

    06 (Reference) Impact of Accrued Income (Result) ＜ FY2018/3Q ＞ ＜ FY2019/3Q ＞ Loss Income - 61.0 billion 37.0 billion yen yen Elements of cost Elements of income (fuel procurement) (time lag from fuel procurement) 2018/4 2019/1 2019/4 2020/1 2020/4 Copyright © CHUBU Electric Power Co.,Inc. All Right

  10. Slide 10: Summary of Forecast for FY2019 <1>

    07 Summary of Forecast for FY2019 <1> <Forecast> (Consolidated) Forecasts of financial results have not been revised from the previous announcement made in October 31, 2019.  Operating revenues: 3,050.0 billion yen (forecast)  Ordinary income: 185.0 billion yen (forecast) (Ordinary income excludin

  11. Slide 11: Summary of Forecast for FY2019 <2>

    08 Summary of Forecast for FY2019 <2> [Principal Figures] (TWh,%) Current October 31 Change ＜Electrical energy sold＞ (A) (B) (A-B) (A-B)/B Electrical energy sold 118.7 118.7 ｰ ｰ (Reference) Electrical energy sold including group 124.2 124.2 ｰ ｰ companies * * The sum of the company, consolidated subs

  12. Slide 12: Reference Data

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

  13. Slide 13: Segment Information

    09 Segment Information [Operating revenues] (Billion yen) 2019/3Q 2018/3Q Change (A) (B) (A-B) Customer Service & 1,998.0 2,009.3 (11.2) Sales Power Network 551.3 544.8 6.5 JERA（*1） - 773.8 (773.8) Others (*2) 545.1 546.2 (1.0) [Ordinary income and loss] (Billion yen) Decrease mainly due to the incr

  14. Slide 14: Consolidated Statements of Income

    10 Consolidated Statements of Income (Billion yen,%) 2019/3Q 2018/3Q Change (A) (B) (A-B) (A-B)/B Operating revenues 2,280.7 2,199.1 81.5 3.7 Share of profit of entities accounted for using equity 72.7 9.5 63.1 658.3 method Other 8.8 10.0 (1.1) (11.9) Non-operating revenues 81.6 19.6 61.9 315.3 Ordi

  15. Slide 15: Nonconsolidated Statements of Income <1>: Operating revenues

    11 Nonconsolidated Statements of Income <1>: Operating revenues (Billion yen,%) 2019/3Q 2018/3Q Change <Major factors for change> (A) (B) (A-B) (A-B)/B Electricity sales revenues 1,601.8 1,591.8 10.0 0.6 An increase in fuel cost adjustment charge +49.8 Sold power to other electric A decrease in elec

  16. Slide 16: Nonconsolidated Statements of Income <2>: Operating expenses

    12 Nonconsolidated Statements of Income <2>: Operating expenses (Billion yen,%) 2019/3Q 2018/3Q Change <Major factors for change> (A) (B) (A-B) (A-B)/B 129.4 139.8 (10.4) (7.5) Integration of the existing thermal Salaries and employee benefits power generation businesses into Fuel 0.0 580.5 (580.4)

  17. Slide 17: Nonconsolidated Statements of Income <3>: Net income

    13 Nonconsolidated Statements of Income <3>: Net income (Billion yen,%) 2019/3Q 2018/3Q Change (A) (B) (A-B) (A-B)/B Operating income 90.7 83.2 7.5 9.0 Non-operating revenues 10.6 12.1 (1.4) (12.3) Non-operating expenses 16.7 22.2 (5.4) (24.6) Ordinary revenues 2,046.0 2,009.2 36.7 1.8 Ordinary expe

  18. Slide 18: Consolidated and Nonconsolidated Financial Standing

    14 Consolidated and Nonconsolidated Financial Standing (Billion yen) Dec. 31, 2019 Mar. 31, 2019 Change <Major factors for change> (A) (B) (A-B) Consolidated 5,409.4 5,987.5 (578.0) Succeeded to JERA Assets -1,188.9 Nonconsolidated 4,723.7 5,402.8 (679.1) (including cash and deposits <-335.0>) Conso

  19. Slide 19: Financial Result of JERA

    15 Financial Result of JERA [Consolidated] (Billion yen, ％) 2019/3Q 2018/3Q Change (A) (B) (A-B) (A-B)/B Operating revenues 2,446.4 2,042.1 404.3 19.8 Operating income 167.6 6.0 161.5 2,654.7 Ordinary income 179.3 30.0 149.2 495.9 Net income attributable to 157.8 22.0 135.8 617.1 owners of parent Co

  20. Slide 20: Impact of the Feed-in-Tariff Scheme for Renewable Energy

    16 Impact of the Feed-in-Tariff Scheme for Renewable Energy <Result of 2019/3Q (change from the previous year in parenthesis)> Renewable energy Electricity generator Electric utility customers Purchased cost (Purchased power Surcharge under act on purchase of from other suppliers) renewable energy s

  21. Slide 21: Ordinary Income (Loss) and Net Income (Loss)

    17 Ordinary Income (Loss) and Net Income (Loss) [Consolidated Ordinary Income (Loss)] [Consolidated Net Income (Loss)] (billion yen) (billion yen) 300.0 300.0 255.6 250.0 250.0 200.0 185.0 200.0 169.7 165.0 146.2 150.0 150.0 128.5 121.4 112.9 114.6 100.0 100.0 84.5 60.2 74.3 79.4 50.0 50.0 38.7 0.0

  22. Slide 22: Cash Flow (Consolidated)

    18 Cash Flow (Consolidated) （billion yen） 800.0 Cash Flows from Operating Activities Cash Flows from Investing Activities FCF 562.4 600.0 449.7 476.8 424.1 400.0 335.0 296.4 approx. 227.6 254.4 225.0 203.7 194.0 176.8 200.0 113.6 79.6 0.0 (25.1) (70.2) (62.8) (71.9) (102.9) (200.0) (247.0) (266.6) (

  23. Slide 23: Fund Raising and Outstanding Interest-bearing Debt

    19 Fund Raising and Outstanding Interest-bearing Debt [Fund raising (Nonconsolidated) ] [Outstanding Interest-bearing debt (Consolidated) ] (billion yen) (billion yen) 900.0 3400.0 820.0 3,260.5 3,260.0 800.0 3200.0 700.0 3000.0 2,965.8 2,981.1 Funding 2,918.9 interest –bearing to JERA 600.0 Plan Im

  24. Slide 24: Financial Ratio, Credit Ratings

    20 Financial Ratio, Credit Ratings (%) [Shareholders’ equity ratio (Consolidated)] [Debt-Equity ratio (Consolidated)] (Times) 40.0 2.5 approx. 2.3 35.0 2.2 35.0 2.1 2.0 31.1 31.1 31.3 1.8 1.7 29.7 1.6 1.6 30.0 approx. 28.9 1.5 1.5 1.5 1.5 26.8 26.1 24.7 24.2 25.0 1.0 20.0 0.5 2010 2011 2012 2013 201

  25. Slide 25: ROA and ROE

    21 ROA and ROE [ROA (Consolidated)] [ROE (Consolidated)] （%） （%） 6.0 16.0 5.3 14.0 5.0 approx. 12.0 11.1 4.0 4.0 10.0 approx. 3.4 9.0 3.0 2.7 2.8 8.0 7.0 2.4 6.0 1.9 5.1 2.0 4.4 4.5 4.0 2.7 1.0 2.0 0.0 0.0 △0.0 (2.0) (1.0) (0.6) (2.2) (0.9) (4.0) (2.0) (4.6) (6.0) (5.8) (3.0) (8.0) 2010 2011 2012 20

  26. Slide 26: Sales Figures

    22 Sales Figures 2019/3Q Target The number of entry ; Approx. 2.07 million - New electric tariff menu Chubu region The number of sales ; Acquire 100 thousand customers Approx. 31 thousand Services in a set with electric power or gas by FY2020 Increase to approx. 30.0 TWh/year Electrical energy sold

  27. Slide 27: Monthly Breakdown of Electrical Energy Sold

    23 Monthly Breakdown of Electrical Energy Sold (TWh) FY2019 Apr.- Apr. May June July Aug. Sep. Oct. Nov. Dec. Dec. Low voltage 3.0 2.8 2.1 2.3 3.4 3.0 2.4 2.5 2.8 24.2 High voltage・ Extra-high 6.5 6.5 7.0 7.5 7.5 7.6 7.1 6.5 6.5 62.7 voltage Total 9.5 9.3 9.1 9.8 10.8 10.6 9.5 9.1 9.2 86.9 * The tot

  28. Slide 28: Composition of Electric Power Output

    24 Composition of Electric Power Output (Reference) [Composition of power sources] [Composition of Electric Power Output] Long-term Energy Supply-demand Outlook 100% 100% Nuclear Nuclear 13% JEPX, Other*4 Nuclear 11% 15% 20～ Renewable Energy 6% FIT 22% 80% Hydro 80% 9% 3% Renewable Energy*3 19% 5% H

  29. Slide 29: Reduction of CO2 emissions

    25 Reduction of CO2 emissions [Trends and outlook of CO2 emission intensity (before reflecting CO2 credits)] (kg-CO2/kWh) 0.50 The reduction by expanding Hamaoka Nuclear Power the use of renewable energy Station suspended 0.457 operation Joetsu Thermal 0.45 Power Station started operation Nishi-Nago

  30. Slide 30: Overview of Renewable Energy Business

    26 Overview of Renewable Energy Business (As of the end of December, 2019) (Reference) Development locations of hydroelectric power station Chubu Electric Conventional hydro Chubu Electric Group Akigami : 0.29MW(FY2016) Generation with minimum water level operating 197 Site : 5,459MW Sakore : 0.38MW

  31. Slide 31: Overview of Overseas Business (1)

    27 Overview of Overseas Business (1) [Submarine power transmission business in Germany] Overview of the business Operating and maintaining following four submarine transmission cables which run Project overview from a wind power plant located in an offshore area of the North Sea BorWin1 BorWin2 DolW

  32. Slide 32: Overview of Overseas Business (2)

    28 Overview of Overseas Business (2) [Mitsubishi Corporation and Chubu Electric Power Named Preferred Buyers in Bid for Dutch Energy Company “Eneco”] Overview of the business Acquire expertise in the development and operation of offshore wind power, fuse expertise in new services, contribute to Purp

  33. Slide 33: DISCLAIMER

    DISCLAIMER 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

  34. Slide 34: Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

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

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