Chubu Electric Power Company,incorporated · TSE:9502
Chubu Electric Power Company,incorporated — Q1 FY2018 Earnings Presentation
54 slides from Chubu Electric Power Company,incorporated's earnings presentation, July 2018
Slide 1: Presentation Materials for Investors 1st Quarter FY2018
Presentation Materials for Investors 1st Quarter FY2018 July, 2018
Slide 2: Index
INDEX 01 Outline of Financial Results for Three-Months ended June 30, 2018 Summary of Financial Results ･･･････････････01 Electrical Energy Sold ･･･････････････04 Electrical Power Supplied and Principal Figures ･･･････････････05 (Reference) Impact of Accrued Income Incurred by Fuel Cost Adjustment S
Slide 3: Outline of Financial Results for Three-Months Ended June 30, 2018
01 Outline of Financial Results for Three-Months Ended June 30, 2018 Note: The company’s fiscal year (FY) is from April 1 to March 31 of the following year. FY2018 represents the fiscal year begun on April 1, 2018, and ending on March 31, 2019. 1st Quarter(1Q) represents three months period ended Ju
Slide 4: Summary of Financial Results <1>
01 Summary of Financial Results <1> Operating revenues (consolidated) increased for 2 consecutive years since 2017/1Q. Ordinary income (consolidated) increased following 2015/1Q, for the first time in 3 years. We recorded increased sales and profit (consolidated) following 2015/1Q, for the fir
Slide 5: Summary of Financial Results <2>: Consolidated Operating Revenues
02 Summary of Financial Results <2> <Consolidated Operating Revenues> Operating revenues increased by 29.0 billion yen compared with 2017/1Q, mainly due to a increase in surcharge and grant based on Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Elec
Slide 6: Summary of Financial Results <3>: Consolidated Ordinary Income
03 Summary of Financial Results <3> <Consolidated Ordinary Income> Consolidated ordinary income increased by 11.0 billion yen compared with 2017/1Q, mainly due to improvement of the efficiency and decrease in fuel cost by an increase in hydroelectric power generated, in spite of a decrease in elec
Slide 7: Electrical Energy Sold
04 Electrical Energy Sold <Electrical Energy Sold> ⁃ Dropped by 3.7% to 27.3 TWh, compared with 2017/1Q, mainly due to an effect of switches made to other operators with the intensified competition and an decrease in air conditioning demand by higher temperature in this early spring, in spite of a s
Slide 8: Electric Power Supplied and Principal Figures
05 Electric Power Supplied and Principal Figures <Electric Power Supplied> Hydro : The flow rate was higher than 2017/1Q ; thus hydroelectric power output increased by 0.7 TWh. Wholesale： Increased by 0.7 TWh, mainly due to an increase in wholesale volume. Purchased power : Increased by 0.3 TW
Slide 9: Impact of Accrued Income Incurred by Fuel Cost Adjustment System (Result)
06 (Reference) Impact of Accrued Income Incurred by Fuel Cost Adjustment System (Result) ＜ FY2017/1Q ＞ ＜ FY2018/1Q ＞ Standard fuel price Loss Loss -13.0 billion -14.0 billion Fuel procurement price (basis of fuel cost) Average Fuel price (basis of fuel cost adjustment charge) 2017/4 2017/6 2018/4 20
Slide 10: Summary of Forecast for FY2018 <1>
07 Summary of Forecast for FY2018 <1> <Forecast> Forecasts of financial results have been revised from the previous announcement made in April 27, 2018. Consolidated operating revenues will increase mainly due to an increase of fuel cost adjustment charge. Consolidated ordinary income will decre
Slide 11: Summary of Forecast for FY2018 <2>
08 Summary of Forecast for FY2018 <2> (TWh,%) [Principal figures] Current April 27 Change (Electrical energy sold) (A) (B) (A-B) (A-B)/B Low voltage 35.7 36.0 (0.3) (0.8) High voltage ・Extra-high voltage 81.6 81.3 0.3 0.4 Total 117.3 117.3 - - [Reference] Electrical energy sold including group 123.0
Slide 12: Impact of Fuel Cost Adjustment System in FY2018 (Forecast)
(Reference) 09 Impact of Accrued Income Incurred by Fuel Cost Adjustment System in FY2018 (Forecast) ○ April 27 (Loss of 15.0 billion yen) ○Current(Loss of 50.0billion yen） Standard fuel price Standard fuel price ＜FY2018＞ ＜FY2018＞ Loss Loss -15.0 billion -50.0 billion Fuel procurement price Fuel pro
Slide 13: Management Situation
02 Management Situation Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Slide 14: Initiatives to Address Management Challenges and Toward Realization of Our Vision
Initiatives to Address Management Challenges and 10 Toward Realization of Our “Vision” Changing social structure Changing business systems Intensifying competition among business Shrinking energy market “Initiatives to Address Management Challenges” (four priority measures) operators Diversifying cu
Slide 15: Transition to a Business Model with Unbundling of Each Sector
11 Transition to a Business Model with Unbundling of Each Sector With the changes in the system, including full liberalization of the electricity retail market and the legal unbundling of the power transmission/distribution division, that made power generation, power transmission/distribution, and
Slide 16: Improving Safety Further at Hamaoka Nuclear Power Plant
Improving Safety Further at Hamaoka Nuclear Power Plant Safety improvement measures for Hamaoka Nuclear Power Plant (prevent 12 accidents and prepare for their occurrence) Under a strong determination to “not allow another accident like that at the Fukushima Daiichi Nuclear Power Plant,” the Hamao
Slide 17: Aiming for a Power Plant That Is Safer and More Trusted
Improving Safety Further at Hamaoka Nuclear Power Plant 13 Aiming for a power plant that is safer and more trusted In order for the business operator itself to squarely reconsider the safety of nuclear power and make efforts to continuously improve safety in the wake of the Fukushima Daiichi accid
Slide 18: Stable Power Supply for a New Age: Renewable Energy Network
Stable Power Supply for a New Age Responding to the introduction/expansion of renewable energy 14 (upgrading the power network) In response to output fluctuations in renewable energy (distributed energy resources), we will improve the accuracy of output prediction and conduct optimal operation of
Slide 19: Improve Management Efficiency to Strengthen Business Base <1>
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 15 Improve management efficiency to strengthen business base <1> Aiming to strengthen our business base through improved management efficiency, we will continually work at reducing repair costs and will streamline equipmen
Slide 20: Improve Management Efficiency to Strengthen Business Base <2>
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 16 Improve management efficiency to strengthen business base <2> [Specific initiative example: improving thermal efficiency of LNG combined cycle generation plants] We are working on cutting fuel costs by improving the effic
Slide 21: Improve Management Efficiency to Strengthen Business Base <3>
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 17 Improve management efficiency to strengthen business base <3> [Specific initiative example: improving thermal efficiency of LNG combined cycle generation plants] Based on past hazard results and process of failure develop
Slide 22: Accelerate Growth After Completion of Value Chain in JERA
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 18 Accelerate growth after completion of value chain in JERA We will complete a whole value chain from upstream investments and fuel procurement through power generation to power and gas wholesale sales by integrating our
Slide 23: Provide Energy Services That Continue to Be Chosen by Customers
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 19 Provide energy services that continue to be chosen by customers In order to continue to be chosen by customers in a liberalized retailing market, we will deliver new services that meet customers needs using IoT, etc., n
Slide 24: Establish New Growth Fields (Provide New Forms of Community)
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 20 Establish new growth fields (provide new forms of community) The Chubu Electric Power Group has contributed to regional development through the energy business. In order to help resolve social issues faced by communitie
Slide 25: Carrying Out ESG Management (E)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 21 Carrying out ESG management (E) We carry out business activities with awareness of ESG (environment, society, and governance), in order to fulfil our corporate social responsibility (CSR), incr
Slide 26: Carrying Out ESG Management (S・G)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 22 Carrying out ESG management (S・G) （Social） （Governance） So that employees will work with vitality, we will promote Aiming for sustainable growth, we will strive to further work-life balance, base
Slide 27: Reference Data (1): Financial Results
03 Reference Data(1): Financial Results Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Slide 28: Consolidated Statements of Income
23 Consolidated Statements of Income (Rounded down to nearest 100 million yen.) (Billion yen,%) 2018/1Q 2017/1Q Change (A) (B) (A-B) (A-B)/B Operating revenues 684.4 655.4 29.0 4.4 Non-operating revenues 9.8 5.0 4.8 97.5 Ordinary revenues 694.3 660.4 33.9 5.1 Operating expenses 648.0 623.4 24.5 3.9
Slide 29: Non-consolidated Statements of Income <1>: Operating Revenues
24 Non-consolidated Statements of Income <1>: Operating Revenues (Rounded down to nearest 100 million yen.) (Billion yen,%) 2018/1Q 2017/1Q Change [Major factors for change] (A) (B) (A-B) (A-B)/B Electricity sales revenues 486.5 490.7 (4.2) (0.9) ⁃ A decrease in electrical energy sold Sold power to
Slide 30: Non-consolidated Statements of Income <2>: Operating Expenses
25 Non-consolidated Statements of Income <2>: Operating Expenses (Rounded down to nearest 100 million yen.) (Billion yen,%) 2018/1Q 2017/1Q Change (A) (B) (A-B) (A-B)/B [Major factors for change] Salaries and employee benefits 45.5 44.4 1.1 2.6 ⁃ Differences in power generated : -10.4 Fuel 156.3 153
Slide 31: Non-consolidated Statements of Income <3>: Net Income
26 Non-consolidated Statements of Income <3>: Net Income (Rounded down to nearest 100 million yen.) (Billion yen,%) [Major factors for change] 2018/1Q 2017/1Q Change (A) (B) (A-B) (A-B)/B Operating income 33.6 28.8 4.7 16.5 ⁃ Electricity business : +4.9 Non-operating revenues 8.1 5.2 2.9 56.7 (28.6
Slide 32: Consolidated and Non-consolidated Financial Standing
27 Consolidated and Non-consolidated Financial Standing (Rounded down to nearest 100 million yen.) (Billion yen) 2018.6 2018.3 Change (A) (B) (A-B) Consolidated 5,496.4 5,529.4 (32.9) Assets Non-consolidated 4,962.1 5,001.2 (39.0) Consolidated 3,695.2 3,737.4 (42.1) Liabilities Non-consolidated 3,50
Slide 33: Impact of the Feed-in-Tariff Scheme for Renewable Energy
28 Impact of the Feed-in-Tariff Scheme for Renewable Energy <Result of 2018/1Q (change from the previous year in parenthesis)> Renewable energy Electricity generator Electric customers utility Purchased cost (Purchased power Surcharge under act on purchase of from other suppliers) renewable energy s
Slide 34: Ordinary Income(Loss) and Net Income(Loss)
29 Ordinary Income(Loss) and Net Income(Loss) [Ordinary Income(Loss)] [Net Income(Loss)] (billion yen) (billion yen) 300.0 300.0 Non-Consolidated Consolidated Non-consolidated Consolidated 250.0 250.0 75.0 billion yen (Consolidated) 60.0 billion yen 200.0 100.0 billion yen 200.0 (Non-Consolidated) (
Slide 35: Cash Flow (Consolidated)
30 Cash Flow (Consolidated) （billion yen） 800.0 Cash Flows from Operating Activities Cash Flows from Investing Activities FCF 600.0 562.4 539.1 449.7 476.8 424.1 400.0 335.0 296.7 270.0 254.4 227.6 203.7 194.0 200.0 176.8 113.6 79.6 0.0 (25.1) (70.2) (62.8) (102.9) (200.0) (150.0) (242.3) (247.0) (2
Slide 36: Fund Raising and Outstanding Interest-bearing Debt
31 Fund Raising and Outstanding Interest-bearing Debt We raised total approx. 1,500.0 billion yen in long-term funding for 3 years since the shutdown of Hamaoka Nuclear Power Station. We forecast to raise approx. 70.0 billion yen in long-term funding in FY2018. We forecast outstanding Interest
Slide 37: Financial Ratio, Credit Ratings
32 Financial Ratio, Credit Ratings [Shareholders’ equity ratio] [Debt-Equity ratio] Approx. 33% (%) (Times) 35.0 as of Apr. 2019* Non-consolidated Consolidated (Consolidated) Non-Consolidated Consolidated Approx. 1.7 times at the end of FY2018 Approx. 31% 2.5 (Consolidated) as of Apr. 2019* (Non-Con
Slide 38: ROA and ROE
33 ROA and ROE （%） [ROA] （%） [ROE] 6.0 16.0 Non-Consolidated Consolidated Non-Consolidated Consolidated 14.0 5.0 12.0 4.0 10.0 Approx. 2% (Non-Consolidated, Consolidated) Approx. 4% 3.0 8.0 (Non-Consolidated, Consolidated 6.0 2.0 4.0 1.0 2.0 0.0 0.0 (2.0) (1.0) (4.0) (2.0) (6.0) (3.0) (8.0) 2009 201
Slide 39: Segment Information
34 Segment Information [Operating revenues] (Rounded down to nearest 100 million yen.) (Billion yen) 2018/1Q 2017/1Q Change (A) external customers (B) external customers (A-B) external customers Power Generation 242.6 12.7 239.2 6.4 3.4 6.3 Power Network 169.3 25.2 176.2 17.2 (6.8) 8.0 Customer Serv
Slide 40: Sales Figures
35 Sales Figures 2018/1Q Target The number of applications ; Chubu region 1.48 million ― New electric tariff menu Increase to 30.0 billion kWh/year Electrical energy sold outside of Chubu region 1.5 billion kWh (second half of 2020s) in the Tokyo Outside of metropolitan area Chubu region The number
Slide 41: Seasonal Breakdown of Electricity Sales Volume
36 Seasonal Breakdown of Electricity Sales Volume (TWh,%) FY2018 Change Apr.-Jun. Apr. May Jun. （A-B） （A-B）/B （A） Low voltage 2.9 2.5 2.3 7.8 (0.7) (8.5) High voltage・ 6.4 6.3 6.9 19.5 (0.3) (1.6) Extra-high voltage Total 9.3 8.9 9.1 27.3 (1.0) (3.7) FY2017 Apr.-Jun. Apr. May Jun. （B） Low voltage 3.
Slide 42: Reference Data (2): Management Information
03 Reference Data (2) : Management Information Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Slide 43: Responding to Renewable Energy Expansion (Reuse Storage Batteries for EVs)
Stable Power Supply for a New Age Responding to the introduction/expansion of renewable energy 37 (reuse storage batteries for EVs) In cooperation with Toyota Motor Corporation, we will start new verification aimed at establishing a high- capacity storage battery system that reuses storage batteri
Slide 44: Initiatives of JERA <1>
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 38 Initiatives of JERA <1> [Domestic power generation business (New establishment and replacement)] Bring together the knowledge and technology of both companies to establish and replace thermal power stations, and thereby s
Slide 45: Initiatives of JERA <2>
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 39 Initiatives of JERA<2> [Fuel business (upstream, procurement, transportation, trading)] Optimum portfolio is create using the world’s largest procurement scale and trading, and fuel procurement that can flexibly respond t
Slide 46: Expand Business in the Tokyo Metropolitan Area
Strengthening Our Business Base for Growth and Achieving Sustainable Growth Provide energy services that continue to be chosen by customers (expand 40 business in the Tokyo metropolitan area) We jointly established a new company with Osaka Gas to conduct sales of services related to electric power
Slide 47: Establish New Growth Fields (Provide New Forms of Community)
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 41 Establish new growth fields (provide new forms of community) Services to improve the quality of life of Provide various “new forms of community” individuals by utilizing various data • For new community development in urb
Slide 48: Carrying Out ESG Management (E: Composition of Electric Power Output)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 42 Carrying out ESG management (E : Composition of Electric Power Output) Based on energy mix of Japan, aim for optimum composition of power sources by combining various types of power source, suc
Slide 49: Carrying Out ESG Management (E: Reduction of CO2 Emissions)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 43 Carrying out ESG management (E : Reduction of CO2 emissions) Japanese government set up the target of reducing greenhouse gas emissions (26% reduced by FY2030) as Japan’s goal of the Paris Agre
Slide 50: Carrying Out ESG Management (E: Improvement of Thermal Efficiency)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 44 Carrying out ESG management (E : Improvement of thermal efficiency) 50.0 (%) [Change of total thermal efficiency (LHV basis)] [Outline of development of Taketoyo Chubu 10 EPCos Total 48.94 Therma
Slide 51: Carrying Out ESG Management (E: Promotion of Renewable Energy)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 45 Carrying out ESG management (E : Promotion of Renewable Energy) (As of the end of June, 2018) Development locations of hydroelectric power station (Reference) Conventional hydro Chubu Electric Ch
Slide 52: Carrying Out ESG Management (E: connect & manage)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 46 Carrying out ESG management (E : connect & manage) Chubu Electric Power has begun an initiative (N-1 power control) to use capacity that is set aside for an emergency in case of failure, based
Slide 53: 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
Slide 54: Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Chubu Electric Power — Q1 FY2018 Earnings Presentation on 6ix