Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — FY2020 Earnings Presentation
29 slides from Tokyo Gas's earnings presentation, Apr 28, 2021
Slide 1: FY2020 Financial Results
FY2020 Financial Results ended March, 2021 April 28, 2021 "E TOKYO GAS TSE:9531
Slide 2: FY2020 Consolidated Financial Results
o1 FY2020 Consolidated Financial Results ended March, 2021 "RTOKYO GAS
Slide 3: Both sales and profit decreased in FY2020
Both sales and profit decreased in FY2020, based on profit attributable to owners of parent. Net sales were ¥1,765.1 billion, a decrease of ¥160.1 billion year on year. This was mainly attributable to a decrease in the city gas unit price due to gas rate adjustments and a drop in the city gas sales
Slide 4: City gas sales volume in FY2020
The city gas sales volume in FY2020 was 12,990 million m3, a decrease of ¥865 million m3. This was mainly attributable to a 610 million m3 decrease in sales volume to industrial customers. The impact of COVID-19 is also included in the “others” category of residential, commercial and wholesale sales
Slide 5: Total electricity sales volumes in FY2020
Total electricity sales volumes in FY2020 was 24,761 million kWh, up 20.2% year on year. Retail electricity sales increased 23% year on year to 10,482 million kWh, due to an increase in the number of customers. Wholesale and other electricity sales volumes also increased 18.2% to 14,279 million kWh
Slide 6: Net sales and segment profit by segment
Slide 6 shows net sales by segment and segment profit, which is operating profit plus equity income/loss of subsidiaries, and changes thereof. 6
Slide 7: Segment ordinary profit drivers
Ordinary profit of the gas segment was -¥14.0 billion due in part to the response to the tight LNG supply-demand balance in LNG sales. Ordinary profit of the electric power segment was -¥1.4 billion due to a decrease in gross margin from the sharp rise in JEPX prices, despite an increase in gross ma
Slide 8: FY2020 results versus factors shown in 1Q
For reference, this slide indicates the FY2020 results of the same factors for changes from FY2019 that we showed in 1Q. By item, while the year-on-year drop in “other profit increase and decrease” increased from the initial forecast due to the impact from the sharp rise in JEPX prices, the year-on-
Slide 9: Shareholder returns
With regard to shareholder returns, we plan to continue an annual dividend of ¥60 per year based on our policy of a total payout ratio of approximately 60%, which we presented in our Medium-term Management Plan, since the review of our shareholder return policy is still ongoing. We will also conduct
Slide 10: FY2021 Full Year Forecast
02 FY2021 Full Year Forecast "R TOKYO GAS 10
Slide 11: FY2021 forecast of sales and profit increase
For FY2021, we are forecasting an increase in both sales and profit, on a profit attributable to owners of parent basis. The economic framework, which serves as a basis of our forecast, is foreign exchange rate of ¥105/$ and crude oil price of $55/barrel. Our forecast for net sales is +¥50.9 billion
Slide 12: Adjusted ordinary profit
The adjusted ordinary profit, which is derived by adjusting the -¥18.5 billion sliding time lag effect due to changes in resource prices and the ¥11.1 billion amortization of actuarial differences, is ¥79.4 billion. 11
Slide 13: FY2021 city gas sales volume forecast
I would like to describe our forecast of city gas sales volume. We expect the city gas sales volume in FY2021 to decrease by 936 million m3 in total to 12,054 million m3 due in part to a decrease in sales volume to a large industrial customer. We expect the increase in demand among residential custo
Slide 14: FY2021 electricity sales volume forecast
We expect electricity sales volume to increase by 7.6% to 26,640 million kWh. 13
Slide 15: FY2021 segment forecasts
This slide shows FY2021 net sales and segment profit forecasts of each segment as compared to the results of the previous year. 14
Slide 16: Segment profit changes for FY2021
The -¥9.0 billion for the gas segment is mainly due to a decrease in gross margin owing in a change in sales volume, etc. The +¥5.3 billion for the electric power segment is mainly attributable to the easing of the impact of the sharp rise in JEPX prices and the increase in gross margin due to a ris
Slide 17: Profit impact of key factors
This slide illustrates the profit impact of each key factor for change from the previous fiscal year. 16
Slide 18: Use of cash flow in FY2020
This slide details the use of cash flow in FY2020. 17
Slide 19: Key consolidated indicators
This slide shows key indicators on a consolidated basis. 18
Slide 20: Progress against medium-term management plan
These show the progress against the key figures of the medium-term management plan. 19
Slide 21: Reference materials
The following reference materials include a table on the sensitivity to the economic framework assumption, plus the trend of crude oil prices and the exchange rate, a list of major year-to-date press releases, a list of major overseas investment projects, and the number of switches to other electric
Slide 22: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate
Gas Gross Margin Sensitivity to Ch: Impact of rising JCC by $1/bbl Impact on earnings de Oil Price and Exchange Rate 2 1 BH (Unit: billion yen) 1Q 2Q 3Q 4Q Full year 1Q 0.1 -0.5 +0.4 +0.3 +0.1 2a — -0.2 -0.7 +0.6 -0.3 Period 3Q —_ _ -0.1 -0.9 -1.0 4Q — = = -0.2 -0.2 Full year -0.1 -0.7 -0.4 -0.2 -1.
Slide 23: Crude oil price - Exchange rate
Crude oil price - Exchange rate Crude oil price (Japan Crude Cocktail Prices) ($/bbl) 80.00 70.00 S ey s¢ SY Ss x ss » rc —e-FY2020 e+ FY2019 Exchange rate (¥/$) 115.0 110.0 105.0 100.0 fF ~~ YS YS gg gs Ss x ss ys & § § 3 e-FY2020 e+ FY2019 rls F ¥ "ETOKYO GAS 22
Slide 24: Key Topics in FY2020-21
Key Topics in FY2020-21 (Excerpted from Press Releases up to 28th Apr.) ~ Management Reform Initiatives of the Tokyo Gas Group in View of the COVID-19 Pandemic (Nov.30) Management | - notice of Transition to a Company with a Nominating Committee, etc. (Nov.30) Strategy + Notice regarding Company For
Slide 25: Key Topics in FY2020-21
Key Topics in FY2020-21(Excerpted from Press Releases up to 28th Apr.) ‘ Engineering Solutions + Establishment of Ekimachi Energy Create (Apr.7) + Establishment of Ryukyu Energy Service LLC. (May 11)*2 + Began verification of virtual power plants using Ene-Farm home fuel cells (Jun.1) + Initiation o
Slide 26: Key Topics in FY2020-21
Key Topics in FY2020-21(Excerpted from Press Releases up to 28th Apr.) + Establishment of a Subsidiary in the United States and the Acquisition of a SOOMW Solar Power Project(Jul.29) + Tokyo Gas Acquires Oil and Gas Assets in Louisiana Through Castleton Resources and Takes Majority Interest in Castl
Slide 27: Overseas Projects
Overseas Projects 26 e 900 ° % ° ‘Area__No__ Country Subject Main Business Participation year Upstream Shale gas 2013 Upstream Shale gas 2016 Upstream Shale gas 2017 @ usa Downstream Energy Service 2015 Downstream Natural gas power 2017 North America Downstream Solar power 2020 Other ‘Open Innovatio
Slide 28: Trends in city gas/electricity switching
Trends in city gas/electricity switching(published data), Number of customers 27 for city gas retail sales(Tokyo gas consolidated) Electricity switchers (based on applications) City gas switchers (based on applications) Monthly(1,000s) ‘Cumulative(1,000s) Monthly(1,000s) ‘Cumulative(1,000s) 500 25,0
Slide 29: Cautionary Statement regarding Forward-looking Statements
"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 the