Chubu Electric Power Company,incorporated · TSE:9502

Chubu Electric Power Company,incorporated — Q1 FY2016 Earnings Presentation

57 slides from Chubu Electric Power Company,incorporated's earnings presentation, August 2016

  1. Slide 1: Presentation Materials for Investors 1st Quarter FY2016

    Presentation Materials for Investors 1st Quarter FY2016 August, 2016

  2. Slide 2: INDEX

    INDEX 01 Outline of Financial Results for Three-Months ended June 30, 2016 03 Management Situation : ͟What We Aim For” ҩҩҩҩ19 ҩҩҩҩ01 Management Vision Summary of Financial Results Mid-term target toward the achievement of Electricity Sales Volume ҩҩҩҩ04 ‟What We Aim For“ (Initiatives for management

  3. Slide 3: Outline of Financial Results for Three-Months ended June 30, 2016

    01 Outline of Financial Results for Three-Months ended June 30, 2016 Note: The Company’s fiscal year (FY) is from April 1 to March 31 of the following year. FY2016 represents the fiscal year begun in April 1, 2016, and ended in March 31, 2017. 1st Quarter(1Q) represents three months period ended Jun

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

    01 Summary of Financial Results <1> „ Operating revenues (consolidated and non-consolidated) decreased following 2013/1Q, for the first time in 3 years. „ Ordinary income (consolidated and non-consolidated) decreased following 2013/1Q,for the first time in 3 years. (We posted a deficit in 2013/1Q.)

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

    02 Summary of Financial Results <2> ‫ي‬Consolidated operating revenuesً „ 2SHUDWLQJUHYHQXHVGHFUHDVHGE\ELOOLRQ\HQFRPSDUHGZLWK4GXHPDLQO\WRDGHFUHDVHLQHOHFWULFLW\ VDOHVUHYHQXHVUHVXOWLQJIURPDGHFUHDVHRIHOHFWULFLW\VDOHVYROXPHDQGDGHFUHDVHRIIXHOFRVWDGMXVWPHQWFKDUJH [Factors contributing to change in Consolid

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

    03 Summary of Financial Results <3> ‫ي‬Consolidated ordinary incomeً „ &RQVROLGDWHGRUGLQDU\LQFRPHGHFUHDVHGE\ELOOLRQ\HQFRPSDUHGZLWK4GXHWRUHGXFWLRQRIDFFUXHG LQFRPHLQFXUUHGE\IXHOFRVWDGMXVWPHQWV\VWHPDQGGHFUHDVHLQIXHOFRVWDIIHFWHGE\WKHIDOORIIXHOSULFH [Factors contributing to change in Consolidated ordinar

  7. Slide 7: Electricity Sales Volume

    04 Electricity Sales Volume <Electricity Sales Volume> 凑 Dropped by 2.4% to 28.3TWh, compared with 2015/1Q, due to a decrease in air conditioning demand by warmer temperature in this spring and a decrease of production in the automobile industry at the beginning of this fiscal year. „ Low voltage :

  8. Slide 8: Generated and Received Power

    05 Generated and Received Power ٛGenerated and Received Powerٜ „ Hydro : Due to lower water flow, hydro power output decreased by 0.2TWh. (flow rate for 2016/1Q: 96.3%, 2015/1Q: 109.0%) „ Interchanged, purchased Power : Decreased by 0.3TWh, due to an increase in electricity sales volume to power exc

  9. Slide 9: (Reference) Impact of accrued income incurred by fuel cost adjustment system (Result)

    06 (Reference) Impact of accrued income incurred by fuel cost adjustment system (Result) <2015/1Q> Average Fuel price Income (basis of fuel cost adjustment charge) 100.0 billion <2016/1Q> Income 50.0 billion Fuel procurement price (basis of fuel cost) 2015/4 2015/10 2016/4 2016/10 2017/4 Copyright ©

  10. Slide 10: Summary of Forecast for FY2016 <1>

    07 Summary of Forecast for FY2016 <1> ‫ي‬Forecastً Revised Forecasts of Financial Results previously announced on April 28, 2016. „ 2SHUDWLQJUHYHQXHV FRQVROLGDWHGDQGQRQFRQVROLGDWHG ZLOOGHFUHDVHPDLQO\GXHWRDGHFUHDVHLQHOHFWULFLW\ VDOHVYROXPH „ 2UGLQDU\LQFRPH FRQVROLGDWHGDQGQRQFRQVROLGDWHG ZLOOGHFUHDVHP

  11. Slide 11: Summary of Forecast for FY2016 <2>

    08 Summary of Forecast for FY2016 <2> ْPrincipal Figuresٓ (TWh,%) Current April 28 Change (Electricity sales volume) (A) (B) (A-B) (A-B)/B Low voltage 38.0 38.1 (0.1) (0.3) High voltage 䞉Extra-high voltage 84.2 84.8 (0.6) (0.7) Total 122.2 122.9 (0.7) (0.6) (Other principal figures) Current April 28

  12. Slide 12: (Reference) Impact of accrued income by fuel cost adjustment system in FY2016

    09 (Reference) Impact of accrued income incurred by fuel cost adjustment system in FY2016 ْAnnouncement in April‫ق‬35.0 billion yen‫ٓك‬ ْCurrent‫ق‬20.0 billion yen‫ٓك‬ <FY2016> 䠘㻞㻜㻝㻢ᖺᗘ䠚 <FY2016> 䠘㻞㻜㻝㻢ᖺᗘ䠚 Average Fuel price Income ᕪ┈ Average Fuel price Income ᕪ┈ (basis of fuel cost ᖹᆒ⇞ᩱ౯᱁ 35.0 billio

  13. Slide 13: Reference Data (1): Financial Results

    02 Reference Data (1) : Financial Results Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

  14. Slide 14: Consolidated Statements of Income

    10 Consolidated Statements of Income (Rounded down to nearest 100 million yen.) (Billion yen,%) 2016/1Q 2015/1Q Change (A) (B) (A-B) (A-B)/B Operating revenues 631.1 744.2 (113.1) (15.2) Non-operating revenues 3.6 4.7 (1.0) (22.1) Ordinary revenues 634.8 749.0 (114.1) (15.2) Operating expenses 534.2

  15. Slide 15: Non-consolidated Statements of Income <1>: Operating revenues

    11 Non-consolidated Statements of Income <1>: Operating revenues Rounded down to nearest 100 million yen. (Billion yen,%) 2016/1Q 2015/1Q Change 岧Major factors for Change岨 (A) (B) (A-B) (A-B)/B 凑 A decrease in electricity sales Electricity sales revenue 495.5 613.3 (117.8) (19.2) volume : -14.1 凑 A

  16. Slide 16: Non-consolidated Statements of Income <2>: Operating expenses

    12 Non-consolidated Statements of Income <2>: Operating expenses Rounded down to nearest 100 million yen. (Billion yen,%) 岧Major factors for Change岨 2016/1Q 2015/1Q Change (A) (B) (A-B) (A-B)/B Salaries and employee benefits 44.0 47.9 (3.9) (8.1) Fuel 120.3 195.1 (74.7) (38.3) 凑 A decrease in fuel p

  17. Slide 17: Non-consolidated Statements of Income <3>: Net income

    13 Non-consolidated Statements of Income <3>: Net income Rounded down to nearest 100 million yen. (Billion yen,%) 岧Major factors for Change岨 2016/1Q 2015/1Q Change (A) (B) (A-B) (A-B)/B Operating income 93.9 139.0 (45.0) (32.4) 凑 Electricity business : -43.8 凑 Incidental business : -1.2 Non-operatin

  18. Slide 18: Consolidated and Non-consolidated Financial Standing

    14 Consolidated and Non-consolidated Financial Standing (Rounded down to nearest 100 million yen.) (Billion yen,%) 2016.6 2016.3 Change (A) (B) (A-B) 5,409.1 5,538.9 (129.8) Assets <4,966.9> <5,065.5> <(98.6)> 3,739.9 3,901.8 (161.9) Liabilities <3,544.5> <3,697.3> <(152.7)> 1,669.2 1,637.1 32.1 Net

  19. Slide 19: Electric utility operating expenses (Non-consolidated)

    15 Electric utility operating expenses (Non-consolidated) 2WKHU 'HSUHFLDWLRQ 0DLQWHQDQFH 3XUFKDVHG3RZHU )XHO 6DODULHVDQGHPSOR\HHEHQHILWV ‫ق‬%LOOLRQ\HQ‫ك‬ (6%) (7%) (7%) (8%) (9%) (9%) (7%) (12%) (49%) (7%) (50%) (13%) (13%) (13%) (35%) (14%) (11%) (49%) (13%) (45%) (16%) (40%) (20%) (41%) (19%) (36%

  20. Slide 20: Cash Flow (Consolidated)

    16 Cash Flow (Consolidated) ‫ق‬%LOOLRQ\HQ‫ك‬ Cash Flows from Operating Activities Cash Flows from Investing Activities FCF 800.0 663.1 605.3 599.4 592.4 600.0 557.6 562.4 539.1 441.5 472.0 449.8 476.8 400.0 358.9 442.2 307.2 393.0 227.6 200.0 265.2 176.8 203.7 267.2 296.7 254.4 215.4 166.5 199.2 194

  21. Slide 21: Fund Raising

    17 Fund Raising „ We raised total approximately 1,500 billion yen in long-term funding for 3 years since the shutdown of Hamaoka Nuclear Power Station. „ We raised 130 billion yen in long-term funding in FY2015. „ We plan to raise approximately 400 billion yen in long-term funding in FY2016. 900.0 8

  22. Slide 22: Financial Ratio, Credit Ratings

    18 Financial Ratio, Credit Ratings 岧6KDUHKROGHUVbHTXLW\UDWLR岨 岧GHEWHTXLW\UDWLR岨 7LPHV 35.0 4.5 Non-Consolidated Consolidated Non-Consolidated Consolidated 4.0 30.0 27.0% (Non-Consolidasted) 3.5 25.0 3.0 2.1 Times (Non-Consolidasted) 20.0 2.5 15.0 28.9% 2.0 (Consolidated) 1.5 10.0 1.0 1.8 Times 5.0 0

  23. Slide 23: Management Situation: What We Aim For

    03 Management Situation : ‟What We Aim For” Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

  24. Slide 24: Management Vision

    19 Management Vision 凑 We will aim to become a “total energy service corporate group that is one step ahead.” Chubu Electric Power Group : “What We Aim For ರ As a leading company that provides services that exceed expectations to customers ahead of our competitors, we will aim to become a “total ene

  25. Slide 25: Mid-term target toward the achievement of What We Aim For

    20 Mid-term target toward the achievement of ‟What We Aim For” (Initiatives for management issues) Chubu electric 凑 As a leading company that provides services that exceed expectations to Power Group customers ahead of our competitors, we will aim to become a ‟total “What We Aim For ” energy service

  26. Slide 26: Launch of the Internal Company System

    21 Launch of the Internal Company System „ :HHVWDEOLVKHGD冾3RZHU*HQHUDWLRQ&RPSDQ\| 冾3RZHU1HWZRUN&RPSDQ\|DQGD冾&XVWRPHU6HUYLFH 6DOHV&RPSDQ\| WRPDNHVZLIWDQGIOH[LEOHUHVSRQVHVWRFKDQJHVLQWKHEXVLQHVVHQYLURQPHQWLQ$SULO „ :HVHOHFWHG&RPSDQ\3UHVLGHQWVGHOHJDWHGH[HFXWLYHDXWKRULW\RYHURSHUDWLRQVDQGZRUNWRDFKLHYHLQGH

  27. Slide 27: Management Situation: Specific efforts toward the achievement of What We Aim For

    04 Management Situation : Specific efforts toward the achievement of ‟What We Aim For” Spe Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

  28. Slide 28: Development of high efficiency Thermal Power Plants

    㻝㻡 5 22 Development of high efficiency Thermal Power Plants ƂOperation Schedule for High-Efficiency 䛆Outline of development of high efficiency thermal power plants䛇 (FY) Combined-Cycle Power Generation Systemsƃ 2013 2014 2015 2016 2017 2018 䞉䞉䞉䞉䞉䞉 2021 Nishi-Nagoya Taketoyo Thermal Thermal Power Pow

  29. Slide 29: JERA <1>: Establishment of JERA Co., Inc. and What we aim for

    23 JERA <1>:Establishment of JERA Co., Inc. and ‟What we aim for” „ 7RN\R(OHFWULF3RZHU&RPSDQ\,QFRUSRUDWHG KHUHLQDIWHUn7(3&2| DQG&KXEX(OHFWULFHVWDEOLVKHGn-(5$&R ,QF|HIIHFWLYHIURP$SULODVDQHZFRPSDQ\WKDWLPSOHPHQWVnDFRPSUHKHQVLYHDOOLDQFHFRYHULQJWKH HQWLUHHQHUJ\VXSSO\FKDLQIURPXSVWUHDPIXHODQGSURFXUHPHQWWKU

  30. Slide 30: JERA <2>: Business Area of JERA

    24 JERA <2> : Business Area of JERA „ In the power generation field, we will seek to supply internationally competitive energy and improve corporate value by expanding our business scale, target areas and target countries, as well as strengthening our value chain, through JERA, our joint venture wit

  31. Slide 31: Sales strategy for further expansion of electricity and gas market share

    9 25 Sales strategy for further expansion of electricity and gas market share „ In response to full liberalization of the retail power market that commenced in April 2016, we will continue to deploy nNew services for customers using the companybs electricity,| nBusiness expansion in the Tokyo metrop

  32. Slide 32: Hamaoka Nuclear Power Station <1>: Further effort for Safety Enhancement Measures

    Hamaoka Nuclear Power Station <1>: 26 Further effort for Safety Enhancement Measures „ Chubu Electric Power is now under review by the Nuclear Regulation Authority to ensure compliance with the new regulatory standards, and we will make united efforts to swiftly gain confirmation that our reactors a

  33. Slide 33: (Reference) Measures for risk reduction

    27 ‫ق‬Reference‫ك‬Measures for risk reduction „ The risk concerning nuclear power generation are going to be minimized by implementing countermeasures to enhance safety or to prevent disasters. „ Constant efforts need to be made during ordinary times to reduce risks. That is the mission of the opera

  34. Slide 34: Hamaoka Nuclear Power Station <2>: Measures for improving responses (onsite)

    28 Hamaoka Nuclear Power Station <2>‫؟‬ Measures for improving responses to nuclear disaster (onsite response) „ We will amplify field response and equipment measures geared towards enhancing safety, and work to prevent any offsite influence. „ To prepare against various situations developing from m

  35. Slide 35: Hamaoka Nuclear Power Station <3>: Measures for improving responses (offsite)

    Hamaoka Nuclear Power Station <3>: 29 Measures for improving responses to nuclear disaster (offsite response) „ Chubu Electric Power will continue to prevent accidents. We will also achieve stronger partnership with related organizations and both national and local governments, continue to work towa

  36. Slide 36: Reference Data (2): Management Information

    05 Reference Data (2) : Management Information Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

  37. Slide 37: Schedule of the Electricity System Reform

    30 Schedule of the Electricity System Reform ْSchedule of the Electricity System Reformٓ Schedule for Schedule for implementing the measures Enacted the bill 1st phase: Established on Enacted on Establishing the Organization for Nationwide Coordination of April 1, 2015 November 13, 2013 Transmission

  38. Slide 38: Strengthen Mutual Support among Power Companies

    䠍 31 Strengthen Mutual Support among Power Companies „ Reinforcement of the FC (Frequency converter) 凑 To reinforce 900MW FC capacity by the end of FY 2020 (from 1,200MW to 2,100 MW) . 凑 Furthermore, to increase up to total 3,000MW by the end of FY2027. present End of FY2020 End of FY2027 1,500MW Sh

  39. Slide 39: Composition of Power Sources and Electric Power Output

    32 Composition of Power Sources and Electric Power Output ْComposition of power sourcesٓ ْComposition of Electric Power Outputٓ 0% Less than1% Less than 1% 4% 4% 11% 1% 6% 20% ٫ 12% 9% 48% 60٫ ‫ٹ‬Coal ‫ٹ‬LNG ‫ٹ‬Oil Nuclear Coal LNG ‫ٹ‬Hydro(more than 30MW) ‫ٹ‬Renewable Energy(exclude Hydro(more than

  40. Slide 40: JERA <1>: Initiatives of JERA

    33 JERA <1> : Initiatives of JERA „ JERA will expand business based on investment profits from each business and profits generated from the optimization of the value chain. ¾ :HZLOOGLYLGHWKHYDOXHFKDLQIURPWKHVHFXULQJRILQWHUHVWVRIHQHUJ\UHVRXUFHVWRSURFXUHPHQWWUDQVSRUWDWLRQJDVVXSSO\ DQGSRZHUJHQHUDWLRQ G

  41. Slide 41: JERA <2>: Management Objectives in FY2030

    34 JERA <2>: Management Objectives in FY2030 ƂQuantitative targetƃ (left : FY2016 right : FY2030) (billion yenᲣ Total Assets Sales Net Profit 2,800 4,600 280 4,200 2,200 2,200 120 1,180 100 860 760 600 1,000 60 250 280 400 20 70 200 15 0 5 0 Fuel Overseas Fuel Domestic Power Overseas Total Fuel Dome

  42. Slide 42: (Reference) Overseas IPP and Fuel projects of JERA Group

    35 (Reference)Overseas IPP and Fuel projects of JERA Group &DQDGD • &RUGRYD6KDOH*DV • *RUHZD\ *DV7KHUPDO,33 8$( • 8PP$O1DU*DV7KHUPDO,:33 86 • 7HQDVND*DV7KHUPDO,33 2PDQ • &DUUROO&RXQW\*DV7KHUPDO,33 • 6XU*DV7KHUPDO,33 7DLZDQ • )UHHSRUW/1* • &KDQJ%LQ)RQJ'HU DQG6WDU%XFN*DV7KHUPDO,33 4DWDU 7KH3KLOLSSLQHV

  43. Slide 43: Outlook for Fuel Procurement

    36 Outlook for Fuel Procurement „ After the suspension of all the units of Hamaoka Nuclear Power Station, the Company has increased the utilization of thermal power plants, mostly LNG, to compensate for the loss of power output by nuclear plants. „ The Company considers that it needs to procure a li

  44. Slide 44: Sales Strategy <1>: New Tariff Menu in Chubu Region

    37 Sales Strategy <1>ᲴNew Tariff Menu in Chubu Region „ We will create attractive and competitive services, deliver valuable services worth more than the price (including safe, stable, and affordable energy services) to meet the needs of customers, and also meet customers’ expectations and gain thei

  45. Slide 45: Sales Strategy <2>: Sales in the Tokyo metropolitan area

    Sales Strategy <2>䠖 Sales in the Tokyo metropolitan area <New KatEne Plan> „ In the Tokyo metropolitan area, we will aggressively expand our business since the area has a large market size and is an extremely attractive market with high growth and we will aim to achieve 100 thousand contracts at the

  46. Slide 46: Sales Strategy <3>: Sales in the Tokyo metropolitan area <Partners>

    39 Sales Strategy <3> 䠖Sales in the Tokyo metropolitan area <Partners> Partners 凑 We increased partners to 15 companies which have customers in Tokyo metropolitan. We will conduct sales through various routs. Procurement Sales channels Overview Chubu Electric Sales of New KatEne plan in our website

  47. Slide 47: Sales Strategy <4>: Supplying Gas, LNG and On-Site Energy

    40 Sales Strategy <4> : Supplying Gas, LNG and On-Site Energy ْSupplying Gas, LNG and On-Site Energyٓ 凑 Collaborating with C Energy fully acquired, the Chubu Electric Group continues to offer energy services that combine gas, LNG and on-site energy to business customers. We support their goals to bu

  48. Slide 48: Hamaoka Nuclear Power Station <1>: Progress of the NRA's review

    Hamaoka Nuclear Power Station <1>: Progress of the Nuclear Regulation 41 Authority’s review to verify compliance with the new regulatory standards „ As to Unit No.4, the application form for Change in reactor establishment permission that we submitted has been reviewed by the Nuclear Regulation Auth

  49. Slide 49: Hamaoka Nuclear Power Station <2>: Enhancement of disaster management system

    Hamaoka Nuclear Power Station <2> : 42 Onsite response – Enhancement of disaster management system ‫ ۑ‬With drills and other activities, we are improving the initial response system, enhancing materials and equipment, and stepping up the competence of our personnel in a continued fashion. At the sam

  50. Slide 50: Hamaoka Nuclear Power Station <3>: Onsite response, Education and drills

    43 Hamaoka Nuclear Power Station <3>: Onsite responseٕEducation and drills „ Enhance and strengthen role-based training to step up the Response Center’s capabilities. „ $FWLYHO\LQFRUSRUDWHWKHNQRZOHGJHRIHWHUQDOSURIHVVLRQDOVLQWRWUDLQLQJ Target Major initiative after the Fukushima Daiichi accident occu

  51. Slide 51: Hamaoka Nuclear Power Station <4>: Offsite response, Emergency communication

    Hamaoka Nuclear Power Station <4> : Offsite responseٕ 44 Emergency communication methods to national and local governments „ Chubu Electric Power will dispatch personnel to the offsite center that was launched upon our notice. We will also offer information about the power station to address residen

  52. Slide 52: Hamaoka Nuclear Power Station <5>: Activities to gain public understanding

    45 Hamaoka Nuclear Power Station <5>: Activities to gain public understanding „ On the Hamaoka Nuclear Power Station, we have been steadily promoting further safety measures including facilities measures and disaster prevention measures together with gaining public understanding as a package. „ The

  53. Slide 53: Hamaoka Nuclear Power Station <6>: Seawater inflow via damaged tubes

    Hamaoka Nuclear Power Station <6>: Seawater inflow via damaged tubes 46 in the main condenser for Hamaoka Reactor No.5 ْFactٓ - 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 which seawater flowed to cool ste

  54. Slide 54: Responses to Global Warming

    47 Responses to Global Warming „ The Company has been making efforts to reduce CO2 emission through comprehensive initiatives including the development of high efficiency thermal power generators and renewable energy to achieve a balanced power source composition. „ We intend to participate in the v

  55. Slide 55: Renewable Energy: Our efforts toward Promotion

    48 Renewable Energy : Our efforts toward Promotion (As of end of June, 2016) (Reference1) Development locations of hydroelectric power station (Reference)Chubu Electric Chubu Electric Conventional hydro Generation with minimum water level Group Parentheses denote the commercial operation start year.

  56. Slide 56: Disclaimer

    ',6&/$,0(5 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

  57. Slide 57: Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

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

Chubu Electric Power Company — Q1 FY2016 Earnings Presentation on 6ix