Chubu Electric Power Company,incorporated · TSE:9502

Chubu Electric Power Company,incorporated — FY2018 Earnings Presentation

36 slides from Chubu Electric Power Company,incorporated's earnings presentation, April 2019

  1. Slide 1: Investors Meeting for Fiscal Year ended March 31, 2019

    Investors Meeting for Fiscal Year ended March 31, 2019 April, 2019

  2. Slide 2: Index

    INDEX 01 Outline of Financial Results for Fiscal Year ended March 31, 2019 Summary of Financial Results ･･･････････････01 Electrical Energy Sold ･･･････････････04 Electric Power Supplied and Principal Figures ･･･････････････05 (Reference) Impact of Accrued Income Incurred by Fuel Cost Adjustment Sys

  3. Slide 3: Outline of Financial Results for Fiscal Year ended March 31, 2019

    01 Outline of Financial Results for Fiscal Year ended March 31, 2019 Note: The Company’s fiscal year (FY) is from April 1 to March 31 of the following year. FY2018 represents the fiscal year begun on April 1, 2018, and ended on March 31, 2019. Monetary amounts are rounded down to the nearest whole n

  4. Slide 4: Summary of Financial Results <1>

    01 Summary of Financial Results <1> <Points of Financial Results>  Consolidated operating revenues: 3,035.0 billion yen Operating revenues increased by 181.7 billion yen compared with FY2017, mainly due to an increase in surcharge and grant based on Act on Special Measures Concerning Procurement of

  5. Slide 5: Summary of Financial Results <2>

    02 Summary of Financial Results <2> [Factors contributing to change in consolidated operating revenues] (Operating revenues increased by 181.7 billion yen) （Billion yen） 3,100.0 31,000 An increase in surcharge and grant under act on purchase others of renewable energy 3,000.0 sourced electricity 51.

  6. Slide 6: Summary of Financial Results <3>

    03 Summary of Financial Results <3> [Factors contributing to change in consolidated ordinary income] (Ordinary income decreased by 15.6 billion yen) （Billion yen） 130.0 1,300 Time lag Cost reduction achievement -31.0 in fuel procurement, Others Improvement of the efficiency 2.4 related to the basic

  7. Slide 7: Electrical Energy Sold

    04 Electrical Energy Sold <Electrical Energy Sold> (Nonconsolidated) ）  Dropped by 3.2TWh to 118.3TWh, compared with FY2017, mainly due to an effect of switches made to other operators with the intensified competition, in spite of a sales increase outside Chubu region. (TWh,%) FY2018 FY2017 Change

  8. Slide 8: Electric Power Supplied and Principal Figures

    05 Electric Power Supplied and Principal Figures <Electric Power Supplied> （Nonconsolidated）  Hydro: Almost unchanged from FY2017.  Wholesale: Increased by 3.1 TWh, mainly due to an increase in wholesale volume.  Purchased power: Increased by 4.1 TWh, mainly due to an increase in purchase of powe

  9. Slide 9: Impact of Accrued Income Incurred by Fuel Cost Adjustment System (Result)

    06 (Reference) Impact of Accrued Income Incurred by Fuel Cost Adjustment System (Result) ＜ FY2017 ＞ ＜ FY2018＞ Standard fuel price Loss Loss -19.0 billion -50.0 billion yen yen Fuel procurement price (basis of fuel cost) Average Fuel price (basis of fuel cost adjustment charge) 2017/4 2018/4 2019/4 *

  10. Slide 10: Summary of Forecast for FY2019 <1>

    07 Summary of Forecast for FY2019 <1> <Forecast>  Consolidated operating revenues: 3,050.0 billion yen (forecast)  Consolidated ordinary income: 185.0 billion yen (forecast) Consolidated ordinary income is expected to increase from the previous year mainly due to a conversion of loss incurred by f

  11. Slide 11: Summary of Forecast for FY2019 <2>

    08 Summary of Forecast for FY2019 <2> [Principal Figures] (TWh,%) FY2019 FY2018 Change ＜Electrical energy sold＞ (Forecast) (A) (Result) (B) (A-B) (A-B)/B Electrical energy sold 118.7 118.3 0.4 0.4 [Reference] Electrical energy sold including group 124.2 123.6 0.6 0.5 companies * * The sum of the com

  12. Slide 12: Impact of Accrued Income (Forecast)

    09 (Reference) Impact of Accrued Income (Forecast) ＜FY2018＞ ＜FY2019＞ Loss Income -50.0 billion 35.0 billion yen yen Elements of income (time lag from fuel procurement) Elements of cost (fuel procurement) Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

  13. Slide 13: Policy of Return to Shareholders and Dividends

    Policy of Return to Shareholders and Dividends for the Fiscal Year under Review, 10 and the Fiscal Year to Come <Policy of Return to Shareholders>  Chubu Electric Power will continue to invest in plants and equipments for a safe and stable supply of electricity as well as in growth sectors to maint

  14. Slide 14: Reference Data

    02 Reference Data Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

  15. Slide 15: Consolidated Statements of Income

    11 Consolidated Statements of Income (Billion yen,%) FY2018 FY2017 Change (A) (B) (A-B) (A-B)/B Operating revenues 3,035.0 2,853.3 181.7 6.4 Non-operating revenues 22.2 27.8 (5.6) (20.2) Ordinary revenues 3,057.3 2,881.2 176.1 6.1 Operating expenses 2,909.1 2,716.8 192.3 7.1 Non-operating expenses 3

  16. Slide 16: Nonconsolidated Statements of Income <1>: Operating revenues

    12 Nonconsolidated Statements of Income <1>: Operating revenues (Billion yen,%) FY2018 FY2017 Change <Major factors for change> (A) (B) (A-B) (A-B)/B ⁃ An increase in fuel cost Electricity sales revenues 2,197.1 2,145.3 51.8 2.4 adjustment charge +153.7 ⁃ A decrease in electrical energy Sold power t

  17. Slide 17: Nonconsolidated Statements of Income <2>: Operating expenses

    13 Nonconsolidated Statements of Income <2>: Operating expenses (Billion yen,%) FY2018 FY2017 Change <Major factors for change> (A) (B) (A-B) (A-B)/B ⁃ Differences in power generated: -43.6 Salaries and employee benefits 189.1 181.0 8.0 4.5 ・A decrease in fuel cost by Nishi- Fuel 814.3 713.6 100.6 1

  18. Slide 18: Nonconsolidated Statements of Income <3>: Net income

    14 Nonconsolidated Statements of Income <3>: Net income (Billion yen,%) FY2018 FY2017 Change (A) (B) (A-B) (A-B)/B Operating income 105.5 114.7 (9.1) (8.0) Non-operating revenues 14.7 10.8 3.9 36.8 Non-operating expenses 31.3 33.6 (2.3) (6.9) Ordinary revenues 2,757.8 2,607.9 149.8 5.7 Ordinary expe

  19. Slide 19: Consolidated and Nonconsolidated Financial Standing

    15 Consolidated and Nonconsolidated Financial Standing (Billion yen) 2019.3 2018.3 Change (A) (B) (A-B) Consolidated 5,987.5 5,529.4 458.1 Assets Nonconsolidated 5,402.8 5,001.2 401.6 Consolidated 4,143.1 3,737.4 405.6 Liabilities Nonconsolidated 3,922.8 3,556.1 366.6 Consolidated 1,844.3 1,791.9 52

  20. Slide 20: Segment Information

    16 Segment Information [Operating revenues] (Billion yen) FY2018 FY2017 Change (A) external customers (B) external customers (A-B) external customers Power Generation 1,152.9 51.0 1,097.6 47.5 55.3 3.5 Power Network 746.4 123.0 744.6 85.7 1.7 37.2 Customer Service & Sales 2,749.5 2,646.0 2,633.8 2,5

  21. Slide 21: Financial Result of JERA

    17 Financial Result of JERA [Consolidated] (Billion yen, ％) FY2018 FY2017 Change (A) (B) (A-B) (A-B)/B Operating revenues 2,780.7 2,235.1 545.5 24.4 Operating income 5.2 11.2 (6.0) (53.4) Ordinary income 34.1 52.6 (18.5) (35.2) Net income attributable to 22.5 38.9 (16.3) (41.9) owners of parent (50H

  22. Slide 22: Consolidated Statements of Cash Flows

    18 Consolidated Statements of Cash Flows (Billion yen) FY2018 FY2017 Change (A) (B) (A-B) Cash flows from operating activities (a) 296.4 424.1 (127.7) Cash flows from investing activities (b) (368.3) (344.4) (23.8) Cash flows from financing activities (c) 337.2 (88.6) 425.9 Net decrease in cash and

  23. Slide 23: Impact of the Feed-in-Tariff Scheme for Renewable Energy

    19 Impact of the Feed-in-Tariff Scheme for Renewable Energy <Result of FY2018 (change from the previous year in parenthesis)> Renewable energy Electricity generator Electric utility customers Purchased cost (Purchased power Surcharge under act on purchase of from other suppliers) renewable energy so

  24. Slide 24: Ordinary Income (Loss) and Net Income (Loss)

    20 Ordinary Income (Loss) and Net Income (Loss) [Consolidated Ordinary Income (Loss)] [Consolidated Net Income (Loss)] (billion yen) (billion yen) 300.0 300.0 255.6 250.0 250.0 200.0 200.0 185.0 169.7 165.0 146.2 150.0 150.0 128.5 121.4 114.6 112.9 100.0 100.0 84.5 79.4 74.3 60.2 50.0 50.0 38.7 0.0

  25. Slide 25: Cash Flow (Consolidated)

    21 Cash Flow (Consolidated) （billion yen） 800.0 Cash Flows from Operating Activities Cash Flows from Investing Activities FCF 562.4 600.0 449.7 476.8 424.1 400.0 335.0 296.4 approx. 227.6 254.4 220.0 203.7 194.0 176.8 200.0 113.6 79.6 0.0 (25.1) (70.2) (62.8) (71.9) (102.9) (200.0) (247.0) (266.6) (

  26. Slide 26: Fund Raising and Outstanding Interest-bearing Debt

    22 Fund Raising and Outstanding Interest-bearing Debt [Fund raising (Nonconsolidated) ] [Outstanding Interest-bearing debt (Consolidated) ] (billion yen) (billion yen) 900.0 3400.0 820.0 3260.5 3260.0 800.0 3200.0 700.0 3000.0 2965.8 2981.1 Funding 2918.9 interest –bearing to JERA 600.0 Plan Impact

  27. Slide 27: Financial Ratio, Credit Ratings

    23 Financial Ratio, Credit Ratings [Shareholders’ equity ratio (Consolidated)] [Debt-Equity ratio (Consolidated)] (%) (Times) 40.0 2.5 approx. 2.3 35.0 2.2 35.0 2.1 2.0 31.1 31.1 31.3 1.8 1.7 1.7 29.7 1.6 30.0 28.9 1.5 1.5 1.5 approx. 26.8 1.3 26.1 24.7 24.2 25.0 1.0 20.0 0.5 2010 2011 2012 2013 201

  28. Slide 28: ROA and ROE

    24 ROA and ROE （%） [ROA (Consolidated)] （%） [ROE (Consolidated)] 6.0 16.0 5.3 14.0 5.0 approx. 12.0 11.1 4.0 4.0 10.0 approx. 3.4 9.0 3.0 2.7 2.8 8.0 7.0 2.4 6.0 1.9 5.1 2.0 4.4 4.5 4.0 2.7 1.0 2.0 0.0 0.0 △0.0 (2.0) (1.0) (0.6) (2.2) (0.9) (4.0) (2.0) (4.6) (6.0) (5.8) (3.0) (8.0) 2010 2011 2012 20

  29. Slide 29: Sales Figures

    25 Sales Figures FY2018 Target The number of applications ; Chubu region Approx.1.64 million ― New electric tariff menu Increase to approx. 30.0 billion Electrical energy sold outside of Chubu region 8.5 billion kWh kWh/year (second half of 2020) in Outside of the Tokyo metropolitan area Chubu regio

  30. Slide 30: Monthly Breakdown of Electrical Energy Sold

    26 Monthly Breakdown of Electrical Energy Sold (TWh) FY2018 Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Total Low voltage ２.９ ２.５ ２.３ ２.７ ３.６ ３.３ ２.３ ２.５ ３.０ ４.２ ３.９ ３.１ ３６.４ High voltage・ Extra-high ６.４ ６.３ ６.９ ７.６ ７.６ ７.３ ７.０ ６.６ ６.５ ６.６ ６.６ ６.７ ８１.９ voltage Total ９.３ ８.９ ９.１ １０.３ １

  31. Slide 31: Composition of Electric Power Output

    27 Composition of Electric Power Output (Reference) [Composition of power sources] [Composition of Electric Power Output] Long-term Energy Supply-demand Outlook 100% 100% Nuclear Nuclear 13% JEPX, Other*4 Nuclear 11% 15% 20～ Renewable Energy 6% FIT 22% 80% Hydro 80% 9% 3% Renewable Energy*3 19% 5% H

  32. Slide 32: Reduction of CO2 emissions

    28 Reduction of CO2 emissions [Trends and outlook of CO2 emission intensity (before reflecting CO2 credits)] (kg-CO2/kWh) Hamaoka Nuclear Power Station suspended 0.50 operation 0.476 The reduction by expanding the use of renewable energy 0.45 Joetsu Thermal Power Station Nishi-Nagoya started operati

  33. Slide 33: Overview of Renewable Energy Business

    29 Overview of Renewable Energy Business Development locations of hydroelectric power station (As of the end of March, 2019) Conventional hydro (Reference) Chubu Electric Generation with minimum water level Chubu Electric Group Parentheses denote the commercial operation start year. Akigami : 0.29MW

  34. Slide 34: Overview of Overseas Business

    30 Overview of Overseas Business [Submarine power transmission business in Germany] Overview of the business Operating and maintaining following four submarine transmission cables which run Project overview from a wind power plant located in an offshore area of the North Sea BorWin1 BorWin2 DolWin2

  35. Slide 35: 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

  36. Slide 36: Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

    Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

Chubu Electric Power — FY2018 Earnings Presentation on 6ix