Tokyo Gas Co., Ltd. · TSE:9531

Tokyo Gas — Q3 FY2024 Earnings Presentation

35 slides from Tokyo Gas's earnings presentation, Jan 31, 2025

  1. Slide 1: FY2024 3Q Financial Results

    TSE:9531 FY2024 3Q Financial Results ended December, 2024 January 31, 2025

  2. Slide 2: Working Toward Continuous Corporate Value Enhancement

    01 Working Toward Continuous Corporate Value Enhancement Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  3. Slide 3: Initiatives to Become the Company We Envision

    Initiatives to Become the Company We Envision 3 • We aim to be a leader in next generation energy systems while creating value with our customers, society and business partners (“Compass 2030”) • We aim to realize the above accompanied by earnings growth and increased capital efficiency through asse

  4. Slide 4: Improved Capital Efficiency with Balance Sheet Management

    Improved Capital Efficiency with Balance Sheet Management 4 • Commit to achieve a ROE of 8% by FY2025, our final year in the current MTMP • Aim to increase profits and achieve a ROE of 10% or more around FY2030, considering cost of equity. • Realize sustainable corporate value enhancement through so

  5. Slide 5: Progress of Initiatives to Enhance Corporate Value

    Progress of Initiatives to Enhance Corporate Value 5 • Specific initiatives to achieve a ROE of 8% by FY2025 and key themes for the management plan post current MTMP to be announced by the end of March Overview and current status Upcoming Schedule • Developing detailed action plan for next fiscal ye

  6. Slide 6: Enhancing Capital Policy

    Enhancing Capital Policy 6 • Achieving 8% ROE in FY2025 is our top priority in the current Medium-Term Management Plan • A large-scale buyback program to be implemented from FY2024 to FY2025 • Decided to execute additional buyback of 40 billion yen, targeting completion by end of FY2024 • Maintain a

  7. Slide 7: Cash Allocation to Improve Capital Efficiency

    Cash Allocation to Improve Capital Efficiency 7 • Cumulative operating CF for FY23-24 progressing as planned. Have increased growth investments by using proceeds from asset sales, while also increasing allocation for shareholder returns • Improve capital efficiency through sound balance sheet manage

  8. Slide 8: Establishment of the Corporate Value Enhancement Committee

    Establishment of the Corporate Value Enhancement Committee 8 • Established committee to refine business PFM and capital policy, while incorporating capital market needs • Important contents discussed at committee will be reported to the BOD. The BOD, which the majority of are independent members, ca

  9. Slide 9: FY2024 Consolidated Financial Results

    02 FY2024 Consolidated Financial Results ended December, 2024 Note:The segment information disclosed for FY2024 and FY2023(excluding segment assets and ROA of FY2023)reflects new segment classifications that went into effect from FY2024 as a result of a restructuring of our subsidiary TOKYO GAS UNIT

  10. Slide 10: Key Topics of FY2024 3Q Consolidated Results

    Key Topics of FY2024 3Q Consolidated Results 10 (unit : 100 million yen)  Consolidated FY2024 3Q saw a YoY decline in both sales and profits, driven by a decrease in city gas unit price due to resource costs adjustment and increase in raw material costs for city gas due to exchange rate fluctuation

  11. Slide 11: Consolidated Financial Results

    FY2024 Consolidated Financial Results ended December, 2024 Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  12. Slide 12: Highlights: Sales Down, Profit Down

    FY2024 3Q Consolidated Results Sales, Interest, etc. (Apr. 1, 2024 –Dec. 31, 2024) vs. FY2023 3Q 12 Highlights: Sales Down, Profit Down (+/- indicate impact on profit, 100 million yen) vs. FY2023 3Q Net sales -589 Drop in Energy Solution sales by a decrease in unit price due to resource costs adjust

  13. Slide 13: Sales and Operating Profit/Loss by Business Segments

    FY2024 3Q Results: Sales and Operating Profit/Loss by Business Segments vs. FY2023 3Q 13 (unit : 100 million yen) Segment Profit(Operating profit Net sales*3 + Equity income/loss of subsidiaries) FY2024 3Q FY2023 3Q FY2024 3Q FY2023 3Q Change ％ Change ％ Results Results Results Results Energy solutio

  14. Slide 14: Ordinary Profit Analysis

    FY2024 3Q Results : Ordinary Profit Analysis vs. FY2023 3Q 14  City gas -527 Decrease in city gas gross margin -430 (unit : 100 million yen) Change in volume, etc.-22 ,sliding time lag effect -408 (Net sales) -98:Change in volume, etc.+30, sliding time lag effect -128 Energy (Resource costs, etc.)-

  15. Slide 15: Consolidated Gas Sales Volume/Number of Customers

    FY2024 3Q Consolidated Gas Sales Volume/ Number of Customers vs. FY2023 3Q 15 City Gas sales volume: （ Unit： mil. ㎥） Number of customers(City Gas), LNG sales volume 9,000 +5mil.㎥ (+0.1%) FY2024 3Q FY2023 3Q Change ◼Residential -32 mil.㎥(-1.9%) 7,961 7,956 Results Results 8,000 Temperature effect* -5

  16. Slide 16: Consolidated Electricity Sales Volume/Number of Customers

    FY2024 3Q Consolidated Electricity Sales Volume/ Number of Customers vs. FY2023 3Q 16 Electricity sales volume： New electricity retail customers won by Tokyo Gas （ Unit：mil. kWh ） Cumulative (thousands) Quarter (thousands) -1,602mil. kWh 300 4,500 20,000 4,077 (-8.7%) 3,9754,022 18,397 3,766 3,871 4

  17. Slide 17: Full Year Forecast

    FY2024 Full Year Forecast Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  18. Slide 18: Medium-term Management Plan Key Figures

    Medium-term Management Plan (Announced: February 22, 2023） Key figures 18 FY2024 FY2023 FY2025 Reference Forecast Results Segment profits (operating profit + equity income of 1,500 1,245 2,233 subsidiaries, 100 million yen) approx. Net profit / Total assets (average of the amounts ROA 1.8% 4.5% as o

  19. Slide 19: Plan (Consolidated) Segment ROA

    FY2024 Plan (Consolidated) Segment ROA 19 • As part of our actions for advancing business portfolio management, we have introduced a management approach based on individual ROA targets set for each internal company and core business subsidiary. • We disclose each segment’s ROA forecast of the fiscal

  20. Slide 20: Highlights: Sales Up, Profit Down (vs. Previous Forecast)

    FY2024 Consolidated Forecast Sales, Interest, etc. (Apr. 1, 2024 – Mar. 31, 2025) vs. Previous Forecast 20 Highlights: Sales Up, Profit Down(vs. Previous Forecast) vs. Previous (+/- indicate impact on profit, 100 million yen) Forecast Net sales +360 Increase in Overseas business sales due to exchang

  21. Slide 21: Full Year Forecast: Operating Profit/Loss by Business Segments

    FY2024 Full Year Forecast: Operating Profit/Loss by Business Segments vs. Previous Forecast 21 (unit : 100 million yen) Segment Profit(Operating profit Net sales*3 Equity income/loss of subsidiaries) Previous Previous Forecast Change ％ Forecast Change ％ Forecast Forecast Energy solution*1 23,672 23,

  22. Slide 22: Segment Information: Energy solution

    Segment Information: Energy solution 22 Summary of Results (Unit: 100 million yen) (Unit: 100 million yen) Change in segment profits FY2024 Previous FY2023 2,500 Change % Change % Forecast Forecast Results 2,000 Net sales 23,672 23,497 175 0.7 24,228 -556 -2.3 1,500 City gas 16,248 16,656 -408 -2.4

  23. Slide 23: Segment Information: Energy solution

    Segment Information: Energy solution 23 Summary of Results (Unit: 100 million yen) FY2024 Previous FY2023 Change % Change % Forecast Forecast Results Segment Assets 17,750 17,890 -140 -0.8 17,083 667 3.9 ROA (%) 6.2 6.8 -0.6 -8.8 12.0 -5.8 -48.3 Depreciation 749* 758* -9* -1.2 699 50 7.1 Total 905 1

  24. Slide 24: Full Year Forecast Consolidated Gas Sales Volume/Number of Customers

    FY2024 Full Year Forecast Consolidated Gas Sales Volume/ Number of Customers vs. Previous Forecast vs. FY2023 24 City Gas sales volume: 15,000 （ Unit： mil. ㎥） Residential Number of customers(City Gas), LNG sales volume FY2024 Previous FY2023 Change Change VS. Previous Forecast Forecast Forecast Resu

  25. Slide 25: Full Year Forecast Consolidated Electricity Sales Volume

    FY2024 Full Year Forecast Consolidated Electricity Sales Volume vs. Previous Forecast vs. FY2023 25 Electricity sales volume： （ Unit：mil. kWh ） 30,000 VS. Previous Forecast -483mil.㎥ 25,479 23,579 24,062 (-2.0%) 25,000 Retail Sales 20,000 VS. FY2023 Results 13,439 -1,900mil. kWh (-7.5%) 15,000 23,57

  26. Slide 26: Segment Information: Network

    Segment Information: Network 26 Summary of Results (Unit: 100 million yen) FY2024 Previous FY2023 Change % Change % Forecast Forecast Results Net sales 3,320 3,346 -26 -0.8 3,264 56 1.7 Segment Profit 12 12 0 ― -39 51 ― (Operating profit + Equity income/loss of subsidiaries) Segment Assets 6,320 6,3

  27. Slide 27: Segment Information: Overseas business

    Segment Information: Overseas business 27 Summary of Results (Unit: 100 million yen) FY2024 Previous FY2023 Change % Change % Forecast Forecast Results Net sales 1,796 1,608 188 11.7 1,201 595 49.5 Segment Profit 208 165 43 26.1 304 -96 -31.8 (Operating profit + Equity income/loss of subsidiaries) S

  28. Slide 28: Segment Information: Urban Development

    Segment Information: Urban Development 28 Summary of Results (Unit: 100 million yen) FY2024 Previous FY2023 Change % Change % Forecast Forecast Results Net sales 780 777 3 0.4 911 -131 -14.4 Segment Profit 231 216 15 6.9 229 2 0.7 (Operating profit + Equity income/loss of subsidiaries) Segment Asset

  29. Slide 29: Consolidated Forecast: Factors for Changes from FY2023

    FY2024 Consolidated Forecast (Apr. 1, 2024 – Mar. 31, 2025) vs. FY2023 29 Factors for Changes from FY2023 Ordinary profit (100 million yen) 2,281 Increase in profit from Network Increase in profit 51 from Urban Development business 2 1,030 -935 -96 -5 Decrease in profit Decrease in profit Decrease i

  30. Slide 30: Reference Materials

    Reference Materials Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  31. Slide 31: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate

    Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate 31 Impact of rising JCC（Japan Crude Cocktail Prices) by $1/bbl (Unit: 100 million yen) Impact on earnings 4Q Period 4Q 0 Impact of depreciation of the yen by ¥1/$ (Unit: 100 million yen) Impact on earnings 4Q Period 4Q -10 C

  32. Slide 32: Crude oil price・Exchange rate

    Crude oil price・Exchange rate 32 Crude oil price（Japan Crude Cocktail Prices） ($/bbl) 120.00 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 FY2024 FY2023 FY2022 Exchange rate (¥/$) 160.0 155.0 150.0 145.0 140.0 135.0 130.0 125.0 120.0 FY2024 FY2023 FY2022 Copyright© TOKYO GAS Co., Ltd. All Rights

  33. Slide 33: Realizing management mindful of capital costs and stock prices

    Realizing management mindful of capital costs and stock prices 33 [Progress of our actions] *PBR, PER, ROA and ROE of FY2024 as of December 31, 2024 ＜PBR・PER＞ ＜ROA・ROE＞ PBR PER （％） Achieve PBR of more than one early and 20.0 2.00 move to a higher level 30.00 20.0 1.80 18.0 25.00 16.0 1.60 1.40 14.0

  34. Slide 34: Overseas Projects

    Overseas Projects 34 9 1 2 4 5 7 3 6 8 Area No Country Subject Main Business Participation year Eagle Ford Upstream Shale gas 2016 TG Natural Resources Upstream Shale gas 2017 TGES America Downstream Energy Service 2015 1 U.S.A Birdsboro Downstream Natural gas power 2017 North America Aktina Downstr

  35. Slide 35: Cautionary Statement regarding Forward-looking Statements

    < 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 future per

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