Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — 2Q FY2019 Earnings Presentation
24 slides from Tokyo Gas's earnings presentation, Oct 30, 2019
Slide 1: Tokyo Gas, October 30, 2019
"F TOKYO GAS October 30, 2019
Slide 2: 1. FY2019 Consolidated Financial Results
1. FY2019 Consolidated Financial Results ended September, 2019 "TOKYO GAS
Slide 3: Both sales and profits increased in 2Q FY2019
Both sales and profits increased in 2Q FY2019. Net sales was ¥910.4 billion, a rise of ¥78.1 billion or 9.4% year on year. This is mainly attributable to performance in the gas segment and the electric power segment. In the gas segment, net sales rose reflecting the benefit of ¥48.1 billion from a r
Slide 4: City gas sales volume in 2Q FY2019
In 2Q FY2019, we posted a city gas sales volume of 6,707 million m3, a 1.7% drop year on year. The main factors for the drop in gas sales volume were: -105 million m3 (residential: -77 million m3; commercial: -28 million m3) due to decreases in the number of residential and commercial customers desp
Slide 5: Electricity sales volume in 2Q FY2019
Electricity sales volume in 2Q FY2019 totaled 9,109 million kWh, up 27.6% year on year. Retail electricity sales volume amounted to 3,806 million kWh, up 33.2% year on year due to an increase in the number of customers. New electricity retail customers won by Tokyo Gas is growing steadily and reache
Slide 6: Net sales and segment profit by segment
Slide 5 shows net sales by segment and segment profit (operating profit + equity income/loss of subsidiary), and changes thereof. Segment profit was boosted by the ¥25.2 billion increase in the gas segment. 5
Slide 7: Segment profit drivers in gas, electric power and overseas
In the gas segment, the growth in profit of ¥25.2 billion is mainly attributable to a ¥22.0 billion rise in the sliding time lag and a ¥6.3 billion increase in third-party access revenue. In the electric power segment, profit was up ¥0.5 billion. This was due to the rise in gross margin due to an in
Slide 8: 2. FY2019 Full Year Forecast
2. FY2019 Full Year Forecast "TOKYO GAS Previous forecast (as of 1Q) unchanged from original forecast (released April 26)
Slide 9: Full year sales and profit forecasts revised downward
Both sales and profits forecasts have downwardly revised in FY2019 full year. The economic framework assumption for October and onward, which is the basis of the forecasts, has not changed from the previous ¥110/USD for foreign exchange rate and USD 70/barrel for crude oil price. Forecast net sales
Slide 10: Gas sales volume outlook revised downward
Gas sales volume outlook has been revised downward by 248 million m3 or 1.7% from the previous forecast. This is mainly attributable to the 201 million m3 downward revision in sales volume to non-residential customers due to the drop in the utilization by large customers. 9
Slide 11: Electricity sales volume outlook revised upward
Electricity sales volume outlook has been revised upward by 116 million kWh or 0.6% from the previous forecast. The main factor is the increase in the number of retail customers up to 2Q. The number of electricity retail customers is expected to reach 2.4 million by the end of this fiscal year. 10
Slide 12: FY2019 segment forecasts vs previous forecast
This slide explains our FY2019 segment net sales and segment profit forecasts and changes from the previous forecast. The ¥13.1 billion downward revision in the gas segment had a negative impact on the overall segment profit forecast. 11
Slide 13: Segment profit forecast changes
In the gas segment, the forecast was lowered by ¥13.1 billion mainly reflecting a ¥10.2 billion drop in the sliding time lag effect due to the economic frame assumption. In the electric power segment, the forecast was made a downward revision by ¥0.9 billion, as the decrease in the wholesale profit
Slide 14: FY2019 segment forecasts vs previous fiscal year
This slide explains our FY2019 segment net sales and segment profit forecasts and changes from the previous fiscal year. The major changes in segment profits are explained in the following slide. 13
Slide 15: Ordinary profit analysis vs previous year
This slide is an analysis of ordinary profit in comparison with the previous year. 14
Slide 16: Use of cash flows in FY2019
This slide details the use of cash flows in FY2019. 15
Slide 17: Consolidated key indicators
This slide indicates consolidated key indicators. 16
Slide 18: Reference materials
The following reference materials include a table on the sensitivity to the economic framework assumption, plus a list of major press releases in from April 1, 2019 to October 30, 2019, a list of overseas investment projects, and the number of switches to other electricity and city gas service provi
Slide 19: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate
Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate "TOKYO GAS =| Impact of rising JCC by $1/bbl (Unit: billion yen) Impact on earnings 3Q 4Q Full year 3Q -0.3 -1.2 ail} Period 4Q _ -0.2 -0.2 Full year -0.3 -1.4 -1.7 Impact of depreciation by ¥1/$ (Unit: billion yen) Impact o
Slide 20: Key Topics in FY2019 (Press Releases)
Key Topics in FY2019 (Excerpted from Press Releases up to 30th October) "ETIOKYOGAS = Management Strategy + Tokyo Gas Group Initiatives in FY2019 to Achieve GPS2020 (Apr.10) Gas Electric Power (GIP) + Tokyo Gas executes a HOA with Shell Eastern Trading for the supply of LNG(Apr.5) -Participation in
Slide 21: Key Topics in FY2019 (Press Releases)
Key Topics in FY2019 (Excerpted from Press Releases up to 30th October) "ETOKYOGAS =| Digital + Investment in Next Energy & Resources and joint development of loT platform for coordinated control of distributed energy appliances Innovations to further enhance services and expand use of renewables (J
Slide 22: Overseas Projects
Overseas Projects WNorth America q Jeamett fanizos 2013 T [Eagle Ford setae) 2016 T [East Texsas perigee 2017 Downstream @lusa S America Maatoy Sorc 2015 : Downstream Empire Power Plant Natural gas power 2016 [Birdsboro Po: Downstream wer Plant Inatural gas power 2017 Other |Acario Ventures Open bmo
Slide 23: Trends in city gas/electricity switching
Trendsin city gas/electricity switching(published data), Number of customers for city gas retail sales(tokyo gas consolidated) "ETOKYOGAS =| Electricity switchers (based on applications) City gas switchers (based on applications) Monthly(1,000s) Cumulative(1,000s) Monthiy(1,000s) Cumulative(1,000s)
Slide 24: Cautionary Statement regarding Forward-looking Statements
"E 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