Shikoku Electric Power Company, Incorporated · TSE:9507

Shikoku Electric Power — FY2021 2Q Earnings Presentation

23 slides from Shikoku Electric Power's earnings presentation, Nov 16, 2021

  1. Slide 1: Financial Results Briefing for FY2021 2nd Quarter

    Financial Results Briefing for FY2021 2nd Quarter November 16, 2021 Note: This is an accurate and complete translation of original Japanese version prepared for the convenience of our English-speaking investors. In case of any discrepancy between the Japanese and English versions, the former shall p

  2. Slide 2: Contents

    1 Contents １. Highlights of FY2021 2nd Quarter Financial Results ２．Initiatives to Achieve Carbon Neutrality （１）Development of renewable energy sources （２）Initiative to resume operation of Ikata Station Unit No.3 （３）Utilization of demand-side energy resources 〈Reference〉Carbon Neutral Challenges 2050

  3. Slide 3: Highlights of FY2021 2nd Quarter Financial Results

    2 １．Highlights of FY2021 2nd Quarter Financial Results All Rights Reserved © 2021 YONDEN Shikoku Electric Power Co., Inc.

  4. Slide 4: (Blank Space)

    3 （Blank Space）

  5. Slide 5: Highlights of FY2021 2nd Quarter Financial Results

    4 Highlights of FY2021 2nd Quarter Financial Results 【Consolidated】 （100 million yen） Change FY2021-2Q from Points FY2020-2Q (808) ・Increased in wholesale sales revenue due Operating revenues 2,702 to increased sales to the Japan Electric [+138] * Power Exchange (JEPX) ・Decreased in revenues due to

  6. Slide 6: Factors Contributing to Change in Ordinary Profit

    5 Factors Contributing to Change in Ordinary Profit (100 million yen) Ordinary Profit 【Consolidated】 FY2020 2Q FY2021 2Q Increase in total electricity sales ・Increased in revenue 107 ・Increased in cost (105) ２ Increased in the fuel price １７５ (１８５) Decrease in Personnel cost, etc. １３ (８) ４４ Decreased

  7. Slide 7: Electricity Sales

    6 Electricity Sales  Retail Sales （100 million kWh） ・ Electric demand increased by restarting economic activities due to relieving COVID-19 150 ・ A reactionary decreased of air conditioning <+11.6％> demand increased due to high temperature 134 in the previous summer, etc. Lighting 36 <(6.6％)> 38 Re

  8. Slide 8: Electricity Supplied

    7 Electricity Supplied （100 million kWh） Hydro 13 <(13.6％)> Renewable 0.04 <+60.1％> 15 Energy 0.02 62 Thermal <+23.1％> 50  Thermal power and purchased power increased due to increase wholesales 81 Purchased <+4.9％> 77 Power Hydro 8 Hydro 8 Renewable 27 Renewable 25 (Note) Figures in < > are Year-on

  9. Slide 9: Cash Flows

    8 Cash Flows (Note) Positive numbers mean cash inflows, negative numbers mean cash outflows. (100 million yen) FY2021-2Q FY2020-2Q <a-b> <a> <b> Ordinary Profit 13 175 Cash Flows from Depreciation 289 287 Operating Others (320) (352) Activities (125) Subtotal (16) 109 Cash Flows Capital Expenditures

  10. Slide 10: Financial Position

    9 Financial Position (100 million yen) September 30, 2021 March 31, 2021 <a-b> <a> <b> Total Assets 14,647 14,304 343 <Plant and equipment, and intangible assets> (except Special account related to nuclear power decommissioning, Special account related to <8,702> <8,575> <127> reprocessing of spent

  11. Slide 11: Forecasts of Consolidated Financial Results & Dividends for FY2021

    10 Forecasts of Consolidated Financial Results & Dividends for FY2021 Financial Results (100 million yen,%) FY 2021 FY2021 (Forecast in October) (Forecast in April) <c>=<a>-<b> <a> <b> Operating Revenues 5,800 5,500 300 Operating Profit 65 0, 185 (121) Ordinary Profit 60 180 (120) Profit attributabl

  12. Slide 12: Management goal ① Profit target by segment

    11 Management goal ① Profit target by segment Achieve 1/2 of the Group’s overall FY 2030 (long-term goal) profit target in the electricity business and 1/2 in other businesses 8 billion yen FY 2025 (goal) Consolidated Approximately Electricity business 8 billion yen ordinary income 50% Telecommunica

  13. Slide 13: ② Management Index [Consolidated]

    12 ② Management Index 〔 Consolidated 〕 FY2025 FY2016 to 2020 FY2025 FY2030 Management Indicators（consolidated）（5-year-average） (target) (long-term target) Equal to or greater than 【We will continue to acquire profits that exceed the cost of capital】 the capital cost ratio 4% 3% ＲＯＡ 2.0% Approximatel

  14. Slide 14: ③ Shareholder return policy and cash flow allocation

    13 ③ Shareholder return policy and cash flow allocation Basic policy for shareholder returns Goals to be pursued We will decide by comprehensively considering such Supposing the safe and stable operation of Ikata Unit 3 factors as business performance levels, financial will contribute to normalizing

  15. Slide 15: Initiatives to Achieve Carbon Neutrality

    14 2. INITIATIVES TO ACHIEVE CARBON NEUTRALITY All Rights Reserved © 2021 YONDEN Shikoku Electric Power Co., Inc.

  16. Slide 16: Development of renewable energy sources (1/3)

    15 (1) Development of renewable energy sources(1/3) ● Our group aims to develop 500,000 kW of renewable energy by fiscal 2030 and 2 million kW by fiscal 2050 in Japan and overseas, and is participating in various projects and working to find potential development sites. ◇New development targets for

  17. Slide 17: Development of renewable energy sources (2/3)

    16 (1) Development of renewable energy sources (2/3) ◇Participation in Sakaide Biomass Power ◇Participation in the U.S. Solar Power Generation Project (Announced in October this year) Generation Project (Announced in September this year) ・ The aim of this project is to construct Japan's largest biom

  18. Slide 18: Development of renewable energy sources (3/3)

    17 (1) Development of renewable energy sources (3/3) ◇Start of construction of the Kurofujigawa ◇Increased output of hydropower plants Hydropower Plant ・ We are constructing a Kurofujigawa hydro power plant with a ・ At the Company’s existing hydropower plants (57 plants, total maximum output of 1,90

  19. Slide 19: Initiative to resume operation of Ikata Station Unit No.3

    18 (2) Initiative to resume operation of Ikata Station Unit No.3 〇 The decision to revoke the provisional injunction suspending operation of Unit 3 at the Ikata Power Station was made at the Hiroshima High Court's objection hearing in March this year, and in October, the Specialized Safety Facility

  20. Slide 20: Utilization of demand-side energy resources (1/2)

    19 (3) Utilization of demand-side energy resources (1/2) ○ Based on technological innovation in the energy business, changes in social and customer needs, and government measures to achieve ambitious policy goals, we will promote initiatives towards the effective use of demand-side energy resources.

  21. Slide 21: Utilization of demand-side energy resources (2/2)

    20 (3) Utilization of demand-side energy resources (2/2) ◇Example of STEP 2: Utilization of VPP and digital technology ◇Acquisition of advanced overseas knowledge and promotion of collaboration ・ In the VPP business, participating in the demonstration project as a resource ・ We are currently conside

  22. Slide 22: Reference: Carbon Neutral Challenges 2050

    21 <REFERENCE>CARBON NEUTRAL CHALLENGES 2050 In order to reduce CO2 emissions* in FY2030 by half compared to FY2013, we will promote the use of low-carbon and decarbonized power sources and further use of electric energy. In 2050, we aim to be substantially carbon neutral. * Emissions from our retai

  23. Slide 23: Disclaimer

    Disclaimer This presentation contains business forecasts and other forward-looking statements. These statements are based on our assumptions and judgments in consideration of the information available at the time, and are therefore subject to risks and contain an element of uncertainty. It is also p

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