Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — FY2021 Earnings Presentation
28 slides from Tokyo Gas's earnings presentation, Apr 27, 2022
Slide 1: FY2021 Financial Results
Lf FY2021 Financial Results ended March, 2022 April 27, 2022 "E TOKYO GAS TSE:9531
Slide 2: FY2021 Consolidated Financial Results
o1 FY2021 Consolidated Financial Results ended March, 2022 "ETOKYOGAS
Slide 3: Both sales and profit increased in FY2021
Both sales and profit increased in FY2021, based on profit attributable to owners of parent. Net sales increased by 21.5%, or ¥380.0 billion, to ¥2,145.1 billion. This was mainly attributable to a rise in the city gas unit price due to resource cost adjustments in the gas segment. Operating expenses
Slide 4: City gas sales volume in FY2021
The city gas sales volume in FY2021 increased by 1.1%, or 141 million m3, to 13,131 million m3. Although the sales volume to residential customers decreased by 4.0% primarily due to a drop in the number of customers, the sales volume to industrial customers increased by 7.1% mainly due to an increas
Slide 5: Total electricity sales volume
Total electricity sales volume increased by 14.2% to 28,288 million kWh. Retail electricity sales rose by 7.9% mainly due to an increase in the number of customers, while wholesale and other electricity sales volume grew by 18.9%. 5
Slide 6: Net sales and segment profit by segment
Slide 6 shows net sales by segment profit, which is operating profit plus equity income/loss of subsidiaries, and changes thereof. Slide 7 shows the profit analysis of each segment. 6
Slide 7: Profit analysis by segment
In the gas segment, ordinary profit increased by ¥14.2 billion, mainly reflecting a rise in gross margin due to a reduction in the sliding time lag effect caused by crude oil price fluctuation. In the electric power segment, profit grew by ¥2.5 billion, despite a rise in costs following the sharp ri
Slide 8: Shareholder return: dividend and treasury stock purchase
With regard to shareholder return, we plan to pay an annual dividend of ¥65 per share as well as purchase treasury stock of up to ¥16 billion and 8.5 million shares during FY2022 in accordance with our shareholder return policy that was revised in September 2021. We are making efforts to pay dividen
Slide 9: FY2022 full-year forecast
I would like to explain our FY2022 full-year forecast as compared to the results of the previous year. 9
Slide 10: FY2022 forecast of sales and profit
For FY2022, we are forecasting an increase in both sales and profit based on profit attributable to owners of parent. The economic framework, which serves as a basis of our forecast, is a foreign exchange rate of ¥120/$ and crude oil price of $85/barrel. For net sales, we are forecasting an increase
Slide 11: Forecast of city gas sales volume
I would like to describe our forecast of the city gas sales volume. For the city gas sales volume in FY2022, we expect a decrease of ¥733 million m3 in total to 12,398 million m3 due mainly to a decrease in sales volume to a large industrial customer. 11
Slide 12: Forecast of electricity sales volume
This slide shows our forecast of electricity sales volume. We expect electricity sales volume to increase by 23.0% to 34,801 million kWh due to a rise in the number of retail customers and an increase in wholesale sales volume. 12
Slide 13: Changes to reporting segment classification
Before moving on to the segment forecast, I would like to explain about the changes to our reporting segment classification, which are applied from this results announcement. Please turn to slide 13. Following our transition to a holdings company group structure, we have decided to change our report
Slide 14: 13
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Slide 15: FY2022 net sales and segment profit forecast, new segments
This slide shows our FY2022 net sales and segment profit forecasts and year-on-year comparisons of the new segments. For the energy solution and network segments, we are presenting a year- on-year comparison based on the sum figures of the two segments, since it is practically impossible to calculat
Slide 16: Major profit changes by segment
The ¥10.0 billion drop in profit for the energy solution segment and the network segment combined is mainly due to the allocation of companywide expenses to each segment following the segment change, although there was an increase in gross profit in city gas owing to a sliding time lag effect and a
Slide 17: FY2022 forecast under old segment classification
Slide 16 shows year-on-year comparisons of FY2022 net sales and segment profit under the old segment classification, as mentioned earlier. 16
Slide 18: Profit impact of key factors
Slide 17 illustrates the profit impact of each key factor for change from the previous fiscal year. 17
Slide 19: Use of cash flow in FY2022
Slide 18 details the use of cash flow in FY2022. 18
Slide 20: Key indicators and medium-term plan progress
Slide 19 shows key indicators on a consolidated basis, while slide 20 shows the progress against key figures of the medium-term plan. 19
Slide 21: Medium-term Management Plan key figures
(unit : billion yen) Medium-term Management Plan ( Announced: March 25, 2020) K Rete ey figures 20 Hl Roe FY2022 Target Operating profits +equity method income KGI (* billion) 79.1 121.5 140.0 ROE (%) 4.3% 7.5% Approx. 8.0% Hoe incial ROA (%) 1.9% 3.0% Approx. 4.0% D/E Ratio(times) 0.92 0.99 Approx.
Slide 22: Reference materials
The following reference materials include a table on the sensitivity to the economic framework assumption, the trend of crude oil prices and exchange rates, a list of major press releases in FY2021, and a list of major overseas investment projects, etc. 21
Slide 23: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate
Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate 22 BH Impact of rising JCC by $1/bbl Impact on earnings (Unit: billion yen) 1Q 2Q 3Q 4Q Full year 1Q -0.1 -0.5 +0.5 +0.3 +0.2 2a = -0.1 -0.6 40.9 +40.2 Period 3Q 7 = -0.1 -0.9 -1.0 4Q _ _ _ -0.2 -0.2 Full year -0.1 -0.6 -0.2
Slide 24: Crude oil price and exchange rate
rude oil price - Exchange rate Crude oil price (Japan Crude Cocktail Prices) (S/bbl) 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 ef £ ys SS oe x ra $ s —e-FY2021 —e-FY2020 —e=F¥2019 $s ra * < Exchange rate (#/s) 120.0 115.0 110.0 105.0 100.0 %, fe fg e e-FY2021 —e-FY2020 ee Fy2019 f J All
Slide 25: Topics in FY2021 (Excerpted from Press Releases)
for achi Notice regarding Succession of Toyosu Pier District Smart Energy Network “Absorption-type Company Spit (Jan. 27) en plan C28) ‘based compensati jon plan (Jul. 28) Business to 2 Wholly Owned Subsidiary by Means of a Spin-off (Simplified + Notice regarding Absorption-type Merger of two Subsid
Slide 26: Topics in FY2021 (Excerpted from Press Releases)
Topics in FY2021 (Excerpted from Press Releases) ‘@ Engineering Solutions + Establishment of Tokyo Gas Nomura Real Estate Energy Co., Ltd. (Apr. 5) + Tokyo Gas receives consignment contract for owner-support and operations management works at biomass single-fuel combustion thermal power plant in Sen
Slide 27: Overseas Projects
Overseas Projects 26 ° e Seo S G Area No ‘Country ‘Subject Main Business, Participation year Eagle Ford Upstream Shale gas 2016 TG Natural Resources Upstream Shale gas 2017 @ usa TEES America Downstream Energy Service 2015 ~ Birdsboro Power Plant Downstream Natural gas power 2017 North America Aktin
Slide 28: Cautionary Statement regarding Forward-looking Statements
"F 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 t