Chubu Electric Power Company,incorporated · TSE:9502
Chubu Electric Power Company,incorporated — Q3 FY2016 Earnings Presentation
53 slides from Chubu Electric Power Company,incorporated's earnings presentation, February 2017
Slide 1: Presentation Materials for Investors 3rd Quarter FY2016
Presentation Materials for Investors 3rd Quarter FY2016 February, 2017
Slide 2: INDEX
INDEX 01 Outline of Financial Results for Nine-Months ended December 31, 2016 03 Management Situation : ‶What We Aim For” ････19 ････01 Management Vision Summary of Financial Results Mid-term target toward the achievement of Electricity Sales Volume ････04 ‟What We Aim For“ (Initiatives for manageme
Slide 3: Outline of Financial Results for Nine-Months ended December 31, 2016
01 Outline of Financial Results for Nine-Months ended December 31, 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. 3rd Quarter(3Q) represents nine months period ended D
Slide 4: Summary of Financial Results <1>
01 Summary of Financial Results <1> Operating revenues (Consolidated and Non-consolidated) decreased for two consecutive years since 2015/3Q,. Ordinary income (Consolidated and Non-consolidated) decreased following 2013/3Q, for the first time in 3 years. (We posted a deficit in 2013/3Q.) We re
Slide 5: Summary of Financial Results <2>
02 Summary of Financial Results <2> 〈Consolidated operating revenues〉 Operating revenues decreased by 227.7 billion yen compared with 2015/3Q, mainly due to a decrease in electricity sales revenues resulting from a decrease of fuel cost adjustment charge. [Factors contributing to change in Consoli
Slide 6: Summary of Financial Results <3>
03 Summary of Financial Results <3> 〈Consolidated ordinary income〉 Consolidated ordinary income decreased by 57.8 billion yen compared with 2015/3Q, mainly due to a reduction of accrued income incurred by fuel cost adjustment system and a decrease in fuel cost, affected by the fall of fuel price.
Slide 7: Electricity Sales Volume
04 Electricity Sales Volume <Electricity Sales Volume> ⁃ Amounted to 89.3TWh, almost the same as in 2015/3Q, mainly due to a rebound of an increase in electricity sales volume in the previous fiscal year accompanied by a decrease in operation of private power generation, in spite of an increase in a
Slide 8: Generated and Received Power
05 Generated and Received Power ＜Generated and Received Power＞ Hydro : The flow rate fell short of the year-before period; thus hydroelectric power output decreased by 0.4TWh. Interchanged, purchased Power : Decreased by 1.3TWh, mainly due to an increase in electricity sales volume to power exch
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) <2015/3Q> Income 120.0 billion Average Fuel price (basis of fuel cost adjustment charge) <2016/3Q> Income 32.0 billion Fuel procurement price (basis of fuel cost) 2015/4 2015/12 2016/4 2016/12 2017/4 Copyright ©
Slide 10: Summary of Forecast for FY2016 <1>
07 Summary of Forecast for FY2016 <1> 〈Forecast〉 Forecasts of Financial Results have not been revised from the previous announcement made in October 28, 2016. Operating revenues (consolidated and non-consolidated) have not changed. Ordinary income (consolidated and non-consolidated) have not cha
Slide 11: Summary of Forecast for FY2016 <2>
08 Summary of Forecast for FY2016 <2> 【Principal Figures】 (TWh,%) Current October 28 Change (Electricity sales volume) (A) (B) (A-B) (A-B)/B Low voltage 38.5 38.5 - - High voltage ・Extra-high voltage 82.9 82.9 - - Total 121.4 121.4 - - (Other principal figures) Current October 28 CIF price: crude oi
Slide 12: (Reference) Impact of accrued income incurred by fuel cost adjustment system in FY2016 (Forecast)
09 (Reference) Impact of accrued income incurred by fuel cost adjustment system in FY2016 (Forecast) <FY2015> Income Average Fuel price 160.0 billion (basis of fuel cost adjustment charge) <FY2016> Income 10.0 billion Fuel procurement price (basis of fuel cost) 2015/4 2015/10 2016/4 2016/10 2017/4 C
Slide 13: Reference Data(1): Financial Results
02 Reference Data(1): Financial Results Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Slide 14: Consolidated Statements of Income
10 Consolidated Statements of Income (Rounded down to nearest 100 million yen.) (Billion yen,%) 2016/3Q 2015/3Q Change (A) (B) (A-B) (A-B)/B Operating revenues 1,898.7 2,126.4 (227.7) (10.7) Non-operating revenues 13.9 16.6 (2.7) (16.3) Ordinary revenues 1,912.6 2,143.0 (230.4) (10.8) Operating expe
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,%) 2016/3Q 2015/3Q Change 【Major factors for Change】 (A) (B) (A-B) (A-B)/B ⁃ A decrease in fuel cost Electricity sales revenues 1,488.0 1,746.5 (258.4) (14.8) adjustment charge :
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,%) 2016/3Q 2015/3Q Change 【Major factors for Change】 (A) (B) (A-B) (A-B)/B Salaries and employee benefits 131.2 134.0 (2.7) (2.0) Fuel 416.5 617.7 (201.1) (32.6) ⁃ A decrease in f
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,%) 2016/3Q 2015/3Q Change 【Major factors for Change】 (A) (B) (A-B) (A-B)/B Operating income 155.3 222.8 (67.4) (30.3) ⁃ Electricity business : -66.5 ⁃ Incidental business : -0.9 Non-opera
Slide 18: Consolidated and Non-consolidated Financial Standing
14 Consolidated and Non-consolidated Financial Standing (Rounded down to nearest 100 million yen.) (Billion yen) 2016.12 2016.3 Change (A) (B) (A-B) 5,322.2 5,538.9 (216.7) Assets <4,885.2> <5,065.5> <(180.3)> 3,585.7 3,901.8 (316.1) Liabilities <3,430.8> <3,697.3> <(266.4)> 1,736.5 1,637.1 99.3 Net
Slide 19: Electric utility operating expenses (Non-Consolidated)
15 Electric utility operating expenses (Non-Consolidated) Other Depreciation Maintenance Purchased Power Fuel Salaries and employee benefits （Billion yen） 3,000.0 2,709.7 2,638.2 (6%) 2,457.1 (7%) 2,500.0 2,297.3 2,317.3 (7%) 2,136.8 2,037.3 (8%) (9%) 1,982.9 1,871.8 2,000.0 1,884.3 1,861.3 (9%) 1,8
Slide 20: Cash Flow (Consolidated)
16 Cash Flow (Consolidated) （Billion yen） Cash Flows from Operating Activities Cash Flows from Investing Activities FCF 800.0 663.1 605.3 599.4 592.4 600.0 557.6 562.4 539.1 441.5 472.0 449.8 476.8 400.0 358.9 442.2 307.2 393.0 227.6 200.0 265.2 176.8 203.7 267.2 296.7 254.4 215.4 166.5 199.2 194.1
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
Slide 22: Financial Ratio, Credit Ratings
18 Financial Ratio, Credit Ratings 【Shareholders’ equity ratio】 (%) 【Debt-Equity ratio】 (Times) 35.0 4.5 Non-Consolidated Consolidated Non-Consolidated Consolidated 4.0 30.0 27.0% (Non-Consolidated) 3.5 25.0 3.0 2.1 Times (Non-Consolidated) 20.0 2.5 28.9% 2.0 15.0 (Consolidated) 1.5 10.0 1.0 1.8 Tim
Slide 23: Management Situation: What We Aim For
03 Management Situation : ‟What We Aim For” Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Slide 24: Management Vision
19 Management Vision ⁃ We will aim to become a “total energy service corporate group that is one step ahead.” Chubu Electric Power Group : “What We Aim For ” As a leading company that provides services that exceed expectations to customers ahead of our competitors, we will aim to become a “total ene
Slide 25: Mid-term target toward the achievement of What We Aim For
Mid-term target toward the achievement of ‟What We Aim For” 20 (Initiatives for management issues) Chubu electric ⁃ 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
Slide 26: Launch of the Internal Company System
21 Launch of the Internal Company System We established a ‟Power Generation Company,” ‟Power Network Company,” and a ‟Customer Service & Sales Company” to make swift and flexible responses to changes in the business environment in April 2016. We selected Company Presidents, delegated executive a
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” Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Slide 28: Development of high efficiency Thermal Power Plants
15 22 Development of high efficiency Thermal Power Plants 【Operation Schedule for High-Efficiency 【Outline of development of high efficiency thermal power plants】 (FY) Combined-Cycle Power Generation Systems】 2013 2014 2015 2016 2017 2018 ・・・・・・ 2021 Nishi-Nagoya Taketoyo Thermal Thermal Power Power
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” Tokyo Electric Power Company, Incorporated (hereinafter, “TEPCO”) and Chubu Electric established “JERA Co., Inc.” effective from April 30, 2015, as a new company that implements “a comprehensive alliance covering the entire energy
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
Slide 31: Sales strategy for further expansion of electricity and gas market share
25 Sales strategy for further expansion of electricity and gas market share In response to full liberalization of the electricity and gas retail markets, we will continue to deploy “New services for customers using the company’s electricity,” “Business expansion in the Tokyo metropolitan area,” an
Slide 32: Hamaoka Nuclear Power Station: Further effort for Safety Enhancement Measures
Hamaoka Nuclear Power Station : 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 are
Slide 33: (Reference) Efforts to reduce risk
27 （Reference）Efforts to reduce risk Minimize risk related to Nuclear Power Generation by taking measures for Safety Enhancements and Emergency Preparedness Ceaseless efforts for risk reduction at all times are necessary and this is Operator’s Mission Operator’s ①Multiple safety measures Actions
Slide 34: Reference Data (2): Management Information
05 Reference Data (2) : Management Information Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Slide 35: Schedule of the Electricity System Reform
28 Schedule of the Electricity System Reform 【Schedule of the Electricity System Reform】 Schedule for Schedule for implementing the measures Enacted the bill 3rd phase: Enacted on Further securing the neutrality of the power transmission/distribution In April 2020 June 17, 2015 sector through legal
Slide 36: Strengthen Mutual Support among Power Companies
29 Strengthen Mutual Support among Power Companies Reinforcement of the FC (Frequency converter) ⁃ To reinforce 900MW FC capacity by the end of FY 2020 (from 1,200MW to 2,100 MW) . ⁃ Furthermore, to increase up to total 3,000MW by the end of FY2027. present End of FY2020 End of FY2027 1,500MW Shin
Slide 37: Composition of Power Sources and Electric Power Output (FY2015)
30 Composition of Power Sources and Electric Power Output (FY2015) 【Composition of power sources】 【Composition of Electric Power Output】 0% Less than1% Less than 1% 4% 4% 11% 1% 6% 20% 24％ 12% 9% 48% 60％ ■Coal ■LNG ■Oil Nuclear Coal LNG ■Hydro(more than 30MW) ■Renewable Energy(exclude Hydro(more tha
Slide 38: JERA <1>: Initiatives of JERA
31 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. We will divide the value chain from the securing of interests of energy resources to procurement, transportation, gas supply
Slide 39: JERA <2>: Management Objectives in FY2030
32 JERA <2> : Management Objectives in FY2030 【Quantitative target】 (left : FY2016 right : FY2030) (billion yen） 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 D
Slide 40: (Reference) Overseas IPP and Fuel projects of JERA Group
(Reference) Overseas IPP and Fuel projects of JERA Group 33 (As of the end of January 2017) Canada • Goreway Gas Thermal IPP US U.A.E. • Tenaska Gas Thermal IPP • Umm Al Nar Gas Thermal IWPP Oman Taiwan • Carroll County Gas Thermal IPP • Sur Gas Thermal IPP • Chang Bin, Fong Der, • Freeport LNG and
Slide 41: Outlook for Fuel Procurement
34 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 appr
Slide 42: Electricity Sales Strategy <1>: Electric tariff menu
35 Electricity Sales Strategy <1> : Electric tariff menu <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’ expectat
Slide 43: Electricity Sales Strategy <2>: Partners in the Tokyo metropolitan area
36 Electricity Sales Strategy <2> ：Partners in the Tokyo metropolitan area 【Partners】 ⁃ We are unfolding electricity sales through partner companies which have customers in Tokyo metropolitan. Procurement Sales channels Overview Chubu Electric Sales of the KatEne plan in our website EDION Introduce
Slide 44: Gas Sales Strategy <1>: Gas tariff menu
37 Gas Sales Strategy <1> : Gas tariff menu We arranged seven gas tariff menus, i.e. the KatEne Gas Plan for households and the BizEne Gas Plan geared toward businesses. They have been set at prices lower than the gas tariff menu offered by Toho Gas. Prices will be lower than the Gasuteki-Tokutoku
Slide 45: Gas Sales Strategy <2>: Gas sales framework
38 Gas Sales Strategy <2> : Gas sales framework In 2001, Chubu Electric Power launched a natural gas sales operation geared towards large factories, harnessing its own pipelines. The company has since then been taking incremental steps to strengthen and expand its gas business. Collaborating wit
Slide 46: Hamaoka Nuclear Power Station <1>: Progress of the Nuclear Regulation Authority's review
Hamaoka Nuclear Power Station <1> : Progress of the Nuclear Regulation 39 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 Aut
Slide 47: Hamaoka Nuclear Power Station <2>: Measures for improving responses to nuclear disaster (onsite)
Hamaoka Nuclear Power Station <2>：Measures for improving responses to 40 nuclear disaster ~ Plan of bringing the accident under control (onsite) We will amplify field response and equipment measures geared towards enhancing safety, and work to prevent any offsite influence. To prepare against va
Slide 48: Hamaoka Nuclear Power Station <3>: Measures for improving responses to nuclear disaster (offsite)
Hamaoka Nuclear Power Station <3>:Measures for improving responses to 41 nuclear disaster ~ Plan of responses to nuclear disaster (offsite) Chubu Electric Power will continue to prevent accidents. We will also achieve stronger partnership with related organizations and both national and local gove
Slide 49: Hamaoka Nuclear Power Station <4>: Activities to take part in dialogue with local residents
Hamaoka Nuclear Power Station <4> : 42 Activities to take part in dialogue with local residents 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
Slide 50: Responses to Global Warming
43 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
Slide 51: Renewable Energy: Our efforts toward Promotion
44 Renewable Energy : Our efforts toward Promotion (As of the end of December, 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 sta
Slide 52: 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 53: Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Chubu Electric Power Company — Q3 FY2016 Earnings Presentation on 6ix