Chubu Electric Power Company,incorporated · TSE:9502
Chubu Electric Power Company,incorporated — Q1 FY2014 Earnings Presentation
58 slides from Chubu Electric Power Company,incorporated's earnings presentation, Aug 5, 2014
Slide 1: Presentation Materials for Investors
Presentation Materials for Investors August, 2014 Note: The Company's p y fiscal yyear ((FY)) is from April p 1 to March 31of the following g yyear. FY2014 represents the fiscal year begun in April 1, 2014, and ending in March 31, 2015. 1st Quarter (1Q) represents three months period ended June 30,
Slide 2: Table of Contents
Table of Contents I Outline of Financial Results for Three-Months Ended June 30, 2014 Summary of Financial Results<1> 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 1 Summary of Financial Results<2> 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 2 Electricity Sales Volume 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 3 Generated and Received Power 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 4 Consolidated Financial Standing 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 5
Slide 3: Outline of Financial Results for Three-Months Ended June 30, 2014
I Outline of Financial Results for Three-Months Ended June 30,, 2014 Note: We hereby announces a revision of this "Presentation Materials for Investors". We correct it as follows. follows (August 26,2015) 26 2015) Corrected parts Slide4 Generated and Received Power Change (A-B)/B correct incorrect P
Slide 4: Summary of Financial Results <1>
Summary of Financial Results <1> 㻥1 -Operating revenues increased. increased (The First time in two years after 1Q of FY2012) -We recorded an operating income and ordinary income, net income. (The First time in three years after 1Q of FY2011). [Consolidated] (Billion yen,%) 2014/1Q 2013/1Q Change Ch
Slide 5: Summary of Financial Results <2>
Summary of Financial Results <2> 㻥 2 < Main factors for year-on-year change in consolidated ordinary income (loss) > - Influence of electricity rates increase 24.7 billion yen Q Fuel cost adjustment - 2014/1Q j charge g 30.5 billion yyen - Others 6.2 billion yen ƂF t for ƂFactors f change h iin cons
Slide 6: Electricity Sales Volume
Electricity Sales Volume 3 <Demand from customers under regulation> -Electric lighting Dropped 2.4% to 7.4TWh, due to a decrease in air conditioning demand by lower temperature in mid-June. -Electric power Dropped 3.1% to 1.3TWh, due to a decrease in number of contracts and a decrease in air conditi
Slide 7: Generated and Received Power
Generated and Received Power 4 -Hydro Hydro power output increased by 0.2TWh, due to higher water flow. (flow rate for 2014/1Q:87.8%, 2013/1Q:83.0%) -Thermal Thermal ppower output p increased byy 0.3TWh,, because of a decrease in interchanged g ppower and purchased power, as well as the above reason
Slide 8: Consolidated Financial Standing
Consolidated Financial Standing 5 -Total assets Decreased 60.8 billion yen from the end of FY2013, because of decrease of electric utility plant and equipment, due to progress of depreciation , and also decrease in current asset, such as short-term investment. -Net assets Increased 5.3 billion y yen
Slide 9: Summary of Forecast for FY 2014
Summary of Forecast for FY 2014 6 1213 (billion yen) [Principal factors affecting ordinary income] - Consolidated FY 2014 forecast FY 2014 forecast Change (Current) (Apr.28) A decrease of fuel cost adjustment charge - 24.0 (A) (B) (A)-(B) Operating revenues 3,090.0 3,090.0 䠉 A decrease of fuel price
Slide 10: Non-consolidated Forecast for FY 2014 (compared to FY 2013)
Non-consolidated Forecast for FY 2014 127 (compared to FY 2013) (Billion yen) [Principal factors affecting ordinary income] FY 2014 FY 2013 Influence of electricity rates increase + 127.0 Change Forecast Result (A) (B) (A)-(B) Others - 3.0 Operating revenues 2,870.0 2,638.2 approx. 232.0 Effect on o
Slide 11: The Policy on Shareholder Return
The Policy on Shareholder Return 8 - Dividend Forecast - The Company decided to raise electricity rates towards the improvement of earning structure. Th Through h deliberations d lib ti att the th Expert E t Committee C itt on Reviewing R i i Electricity El t i it Rate, R t the th Company C has h re
Slide 12: Management Situation
Management g Situation © 2014 Chubu Electric Power Co., Inc. All rights reserved.
Slide 13: Safety Measures at Hamaoka Nuclear Power Station: Roadmap for Safety Improvement Works
Safety Measures at Hamaoka Nuclear Power Station: 9 Roadmap p for Safety y Improvement p Works - The Company implements additional safety measures for Unit 3 and Unit 4 including earthquake countermeasures, tornado countermeasures, fire countermeasures and strengthening the water injection function
Slide 14: Outlook for Summer FY 2014 (generating end)
Outlook for Summer FY 2014 (generating end) 10 On April 17, 2014, we reported the FY 2014Summer Supply and Demand Outlook to the Fifth Electric Power Supply and Demand Verification Subcommittee. ŠPeak load ((three-day y average) g ) We estimated the peak load at 25,210MW with assumption of the effec
Slide 15: Outlook for Fuel Procurement in FY2014
Outlook for Fuel Procurement in FY2014 11 - Outlook for fuel procurement (LNG) - 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 C
Slide 16: Fund Raising
Fund Raising 12 - Progress of fund raising in FY 2014 - We plan to raise approximately 150 billion yen in long-term funding in FY 2014. - We have raised approximately 20 billion yen by the end of the first quarter (end of June 2014). (Billi yen)) (Billion others 80.0 Funding result bond 20.0 210 0 2
Slide 17: Reference Data
Reference Data The New Regulatory Standards<1>: Outline of "the New Regulatory 䞉䞉䞉䞉䞉䞉䞉䞉 13 Electricity Supply & Demand<4>: Trend of Large-lot demand 䞉䞉䞉䞉䞉䞉䞉䞉 30 Standards" Standards Thermal Power Plants<1>: Development of Thermal Power Plants The New Regulatory Standards <2>: Method for Conducting R
Slide 18: The New Regulatory Standards<1>: Outline
The New Regulatory Standards<1>: 13 Outline of "the New Regulatory g y Standards" Compared to the former safety standards, the new regulatory standards have been strengthen the standards to prevent a severe accident, and newly added the standards to cope with a severe accident or a terrorist attack.
Slide 19: The New Regulatory Standards<2>: Method for Conducting Review and Inspection
The New Regulatory Standards <2>: Method for Conducting Review and Inspection After Enforcement of 14 the New Regulatory Standards (Image) - Application for compatibility check to New Regulatory Requirements, the effectiveness of the both hardware and software, software such as the design of facilit
Slide 20: The New Regulatory Standards<3>: Influence of 40-years regulation
The New Regulatory Standards<3>: 15 Influence of 40-years y regulation g < Article 43, Paragraph 3, Item 31 of the Law for the Regulations of Nuclear Source Material, Nuclear Fuel Material and Reactors> - The operation period of a power reactor shall be 40 years from the start of operation. When app
Slide 21: Hamaoka Nuclear Power Station <1>: Submission of Applications
Hamaoka Nuclear Power Station <1>: : 16 Submission of Applications pp for Review of Compliance p with New Regulatory g y Standards - On February 14, 2014 , the company has submitted application document for change in reactor establishment permission, an application document for approval of construct
Slide 22: Hamaoka Nuclear Power Station <2>: Earthquake countermeasures
Hamaoka Nuclear Power Station <2>: 17 =Design basis measures] Earthquake countermeasures 㻙 Taking into consideration elements of uncertainty, we have conducted an evaluation of seismic ground motion in relation to inland crustal earthquakes, interplate earthquakes and oceanic intraplate earthquakes,
Slide 23: Hamaoka Nuclear Power Station <3>: Tsunami countermeasures
Hamaoka Nuclear Power Station <3>: 18 [Design basis measures] Tsunami Tsunami-counter counter measures - We have conducted surveys and studies on factors causing huge tsunami, regarding interplate earthquakes, oceanic intraplate earthquakes, earthquakes crustal earthquakes produced by active faults,
Slide 24: Hamaoka Nuclear Power Station <4>: Measures to prevent core damage
Hamaoka Nuclear Power Station <4>: 19 ==Countermeasures against g severe accidents and others ? Measures to p prevent core damage g 㻙In order to enhance functions designed to prevent damage to reactor cores, we will implement measures including ensuring the availability of multiple methods for water
Slide 25: Hamaoka Nuclear Power Station <5>: Measures to prevent containment vessel failure
Hamaoka Nuclear Power Station <5>: 20 =Countermeasures against severe accidents and others ? Measures to prevent failure of containment vessels 㻙We will introduce measures including ensuring the availability of multiple methods of cooling the containment vessels and preventing overpressurization in
Slide 26: Hamaoka Nuclear Power Station <6>: Geological survey results
Hamaoka Nuclear Power Station <6>: 21 Geological survey results inside and outside the premise - The H Fault System (strata displacements) was identified on the premises of the Hamaoka Nuclear Power Station. - The H Fault System y has been confirmed to be inactive in a safety y review conducted by y
Slide 27: Hamaoka Nuclear Power Station <7>: Review of Compliance Status
Hamaoka Nuclear Power Station <7>: 22 Current Situation about Review of Compliance with New Regulatory Standards -New regulatory standards for the regulation of nuclear facilities (New Regulatory Standards) were enacted on July 8, 2013. - On February 14, 2014, the Company applied to the Nuclear Regu
Slide 28: Hamaoka Nuclear Power Station <8>: Seawater inflow at Reactor No.5
Hamaoka Nuclear Power Station <8>: 23 Seawater inflow via damaged tubes in the main condenser for Hamaoka Reactor No.5 Fact - On May 14, 2011, when preparing for cold shutdown after reactor No. 5 was suspended, a portion of the tubes in the main condenser, through g which seawater flowed to cool ste
Slide 29: Hamaoka Nuclear Power Station <9>: Reinforcement of disaster measures
Hamaoka Nuclear Power Station <9>: 24 18 Reinforcement of disaster measures of Hamaoka Nuclear Power Station - Review and Strengthening of Nuclear Disaster Prevention System -In addition to construction of tsunami protection wall and other tangible measures, we will strengthen its disaster preventio
Slide 30: Electric Power System Reform <1>: Schedule
Electric Power System Reform <1> : 25 Schedule of the Electric Power System Reform - Schedule of the Electric Power System Reform Schedule for implementing the Schedule for enacted/submitting the bill measures 1st phase: Establishing the Organaization for In about 2015 Enacted on November 13, 2013 N
Slide 31: Electric Power System Reform <2>: Smart Meter
Electric Power System Reform <2> : Smart Meter 26 㻝㻡 - The introduction schedule of smart meters - Installation of smart meters has already been completed for our special high-voltage and high-voltage (500 kW and above) customers. - In the case of other high-voltage (less than 500kW) customers, we b
Slide 32: Electricity Supply & Demand <1>: Summer 2014 Outlook in Japan
Electricity Supply & Demand <1>: Outlook of Electricity Supply and Demand for Summer (August 2014) in Japan 27 29 (GW) West Japan 100 6.0% 80 4.1% 4.1% 4.3% Hokkaido 3 5% 3.5% 3 4% 3.4% 4 0% 4.0% 60 3.0% 3.0% 40 (0.93) (0.47) 2.0% 20 (0.87) (0.22) (0.24) (0.51) 0 0.0% Chubu Kansai Hokuriku Chugoku S
Slide 33: Electricity Supply & Demand <2>: Mutual Support among power companies
Electricity Supply & Demand <2>: Strengthen Mutual 䠍 Support among power companies 28 䕔 Reinforcement of the FC (Frequency Converter) (Outline of the master plan interim report regarding strengthening inter-regional inter regional gridconnection, gridconnection etc. etc ) - To reinforce 900MW FC cap
Slide 34: Electricity Supply & Demand <3>: Composition of Power Sources
Electricity Supply & Demand <3>: Composition of Power Sources and Electric Power Output 29 - Composition of Power Sources (GW) 0 5 10 15 20 25 30 35 40 FY2010 12% 13% 41% 15% 19% FY2011 12% 13% 41% 15% 19% FY2012 11% 12% 43% 15% 19% FY2013 Ƃ37GWƃ 11% 13% 45% 12% 19% N l Nuclear C l Coal LNG Oil etc.
Slide 35: Electricity Supply & Demand <4>: Trend of Large-lot demand
Electricity Supply & Demand <4>: 㻥 30 Trend of Large Large-lot lot demand 㻙 Trend of Large-lot demand (Large-lot demand by industry; year-on-year change 䠅 FY2013 FY2014 Ƃ1Qƃ year-on-year change 䛊%䛋 year-on-year change Ɔ%Ƈ component rate Electricity sales Ɔ%Ƈ January February March FY2013 April May J
Slide 36: Thermal Power Plants <1>: Development and Bidding
Thermal Power Plants <1>: Development of Thermal Power Plants 㻝㻡 and Thermal Plant Bidding 31 - Outline of development of LNG thermal power plants with enhanced efficiency 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (FY) 䕰Mar.-07: construction started 䕰Jul.-12: commercial o
Slide 37: Thermal Power Plants <2>: Reinforcement Plan for LNG Handling Facilities
Thermal Power Plants <2>: Reinforcement Plan for LNG 㻝㻢 Handlingg Facilities 32 - Supporting stable yet flexible LNG procurement 䐣Installation of new gas pipeline 䐟Additional LNG tanks & reinforcement to LNG 䐠 s o oof ggass 䐠Installation receiving dock Shin-Nagoya pipeline across Ise Bay 䐢Installati
Slide 38: Fuel Procurement<1>: LNG Contracts
Fuel Procurement<1>: LNG Contracts 33 - Principal P i i l LNG Contracts C (1,000 t/year) Contract volume Projects / <delivery> Period of contract (approximate figure) Qatar1 / <Ex-ship> <Ex ship> 1997 - 2021 (approx 25 years) (approx.25 4 000 4,000 Australia (extension) / <Ex-ship> 2009 - 2016 (appr
Slide 39: Fuel Procurement<2>: LNG Ship Charter
Fuel Procurement<2>: LNG Ship Charter 34 39 ŠThree Contracts of LNG Ship Charter - Based on the FOB contract ( Gorgon, Ichthys, Wheatstone) , we concluded three contracts of LNG ship charter to enhance efficiency and flexibility of procurement by managing freight charge. 1st Ship 2nd Ship 3rd Ship F
Slide 40: Fuel Procurement<3>: Advancement of Coal Trading
35 Fuel Procurement<3>: Advancement of Coal Trading 36 - Coal tradingg business -Chubu Electric and Electricite de France’s subsidiary EDFT each established 100% subsidiaries in Japan and started fuel trading business under partnership agreement in FY2008. -Effective in April, 2010, Chubu Energy Tra
Slide 41: Fuel Procurement<4>: Acquisition of Interests in Energy Resources
Fuel Procurement<4> 36 Acquisition of Interests in Energy Resources - Acquisition of upstream interests, etc.ೌ Cordova Embayment Integra ႩƷӕࢽཞඞƳƲ] (Shale gas) (Coal) Ichthys Project output capacity: Project output capacity: (LNG) Approx 3.3 million ton/year Approx 3.5 million ton/year in LNG (planne
Slide 42: Fuel Procurement<5>: Results of FY2013
Fuel Procurement<5> Results of FY2013 37 Others 3.0 Canada 1.2 Kazakhstan 0.4 R ssia Russia 37 3.7 䠄䠂䠅 Russia 1.3 Australia 8.8 Africa 9.6 LNG Coal Australia (13 686 il ) (13.686mil.t) Indonesea Ტ10 31 i Უ Ტ10.531mil.tᲣ 49.2 Qatar 48.0 Asia 15.4 59.5 Gabon 4.0 Crude Vietnam Vi t 24.2 oil Indonesea Ტ
Slide 43: Renewable Energy <1>: Feed-in Tariff Scheme
Renewable Energy <1>䠖Feed-in Tariff Scheme 38 㻙 Basic framework of feed-in tariff scheme for renewable energy Operators of renewable energy power generation plants(FY 2013) Class FormȷCapacity Unit price Term Purchase Electric Supply Power Solar no less than 10kW 37.80yen for 20 years Wind less than
Slide 44: Renewable Energy <2>: Our efforts toward Promotion
Renewable Energy <2> : Our efforts toward Promotion 39 㻝㻡 - Details for promotion of renewable energy Output Detailed plans Operation commences (MW) Mega Solar Iida 1 FY 2010 Wind Sollar Ch b Electric Chubu El t i M Mega S Solar l T Taketoyo k t 75 7.5 FY 2011 Mega Solar Shimizu 8 FY 2014 (Plan) (Ph
Slide 45: Renewable Energy <3>: Status of Renewable Energy Initiatives
40 Renewable Energy <3> : Status of Renewable Energy Initiatives 㻝㻡 ŠStatus of Renewable Energy Initiatives (Chubu Electric Power Group) ƂContract demand (Solar, Wind)ƃ ƂThe number of contracts (Solar)ƃ (MW) FY2009 FY2010 FY2011 FY2012 FY2013 2,500 The number of contracts 92,000 128,000 178,000 237,
Slide 46: Growth Business <1>: Sales Strategy
Growth Business <1>: Sales Strategy 41 㻢 - Offers Off off energy solution l ti service i To respond to diversified and sophisticated customers’ needs, Chubu Electric and its group companies combine forces to offer solution service using advantages of both electricity and gas. - Offers of gas, LNG an
Slide 47: Growth Business <2>: Electricity sales business in 50Hz area
Growth Business <2>: Promotion of the electricity sales business in the 50Hz area of Japan 6 45 (Acquisition of Shares of Diamond Power Corporation) 42 - The Company has acquired shares of Diamond Power Corporation and jointly established a power generation company to promote the electricity sales b
Slide 48: Growth Business <3>: Hitachinaka Generation Co., Inc.
Growth Business <3>: Promotion of the electricity sales business in the 50Hz area of Japan 6 46 (Outline of Hitachinaka Generation Co., Inc.) 43 - To develop the electric generation business in the 50Hz area of Japan , on December 6, 2013, the Company, together with TEPCO established "Hitachinaka Ge
Slide 49: Growth Business <4>: Overseas Business Deployment
Growth Business <4>: Overseas Business Deployment 44 - Outline of overseas business Investment amount Output based on Chubu's stake* (approximate) At the 1Q FY2014 Cumulative total 100 billion yen Cumulative total 3,260 MW * represents Ch Chubu's b ' stake k iin totall output off whole h l projects
Slide 50: Financial Results <1>: Fuel cost adjustment system and thermal fuel cost
Financial Results <1> 45 Fuel cost adjustment system and thermal fuel cost <Diagram of impact of thermal fuel cost on the Fuel Cost Adjustment System> Ჶ້щ༓૰ᝲƷ༓૰ᝲᛦૢСࡇƴݣƢǔࢨ᪪ಒဦᲸ Thermal fuel cost factored into the current ʻׅોܭƷጢᡂLj້щ༓૰ᝲ revision Standard fuel price Fuel costs and fuel consumpti
Slide 51: Financial Results <2>: Retirement Benefit Cost
Financial Results <2> 46 Retirement Benefit Cost (Non-consolidated) (Non consolidated) 䕔Salaries and employee benefits (billion yenᲣ Year FY2013 (A) FY2012 (B) (A-B) M ajor factors for change Salaries and employee benefits 181.0 182.5 (1.4) Restated: Retirement benefit cost 10.2 2.9 7.3 Actuarial di
Slide 52: Financial Results <3>: Cash Flow (Non-consolidated)
Financial Results <3> Cash Flow (Non-consolidated) 47 (billion yen) 800.0 փಅCF Cash Flows from Operating Activities 608 9 608.9 ৲CF Cash Flows from Investing Activities 600.0 563.4 548.6 556.9 523.6 FCF 522.2 402.6 424.1 420.1 400.0 426.0 333.8 376.7 270.0 214.4 200.0 276.8 181.3 229.0 237.4 146.0
Slide 53: Financial Results <4>: Financial Ratios, Credit Ratings
Financial Results <4> Financial Ratios, Credit Ratings 48 - Shareholders’ equity ratio - Debt - equity ratio 䠄Times䠅 35% 5 Non-Consolidated Non-Consolidated Consolidated Consolidated 30% 4 24.2Ჟ 25% ᲢConsolidatedᲣ 20% 3 22.0Ჟ Ჟ 2.7Times 2 7Times ᲢNon-ConsolidatedᲣ (Non-Consolidated) 15% 2 2.2Times 1
Slide 54: Electricity Rates Increase <1>: Summary of Approval
Electricity Rates Increase <1> 䠖 㻥49 Summary of Electricity Rates Increase Approval 㻙 On October 29, 2013, the Company applied to the Minister of Economy, Trade and Industry for permission to increase electricity rates for customers in the regulated sector by 4.95%. For deregulated sector, the compa
Slide 55: Electricity Rates Increase <2>: Change in cost at rate revision
Electricity Rates Increase <2> 䠖 㻥50 A change g in the cost at the time of the electricity y rate revision (billion yen) FuelȷPurchased Power Capital cost Maintenance Salaries and employee benefits other 2 500 0 2,500.0 Ტ57%Უ Ტ43%Უ Ტ27%Უ 2 000 0 2,000.0 Ტ26%Უ Ტ28%Უ Ტ33%Უ 562.0 1,393.8 935.2 503.4 52
Slide 56: Electricity Rates Increase <3>: Principal figures for cost calculation
Electricity Rates Increase <3> 䠖 Summary of Principal figures for 㻥 the cost calculation, Generated and Received Power 51 㻙 The Company forecasts electricity sales volume by taking into account customers' power saving efforts over the past year (year-on-year difference: -9.5TWh) 㻙 Regarding generate
Slide 57: Electricity Rates Increase <4>: Efforts toward Management Efficiency
Electricity Rates Increase <4>䠖 㻥52 Efforts toward Promotion of Management Efficiency - The Company has been implementing extensive cost reduction efforts to raise management efficiency since the suspension of all reactors at the Hamaoka Nuclear Power Station in May 2011. In April 2013, the Company
Slide 58: Disclaimer
DISCLAIMER This presentation Thi t ti contains t i assumptions ti andd forward-looking f d l ki statements t t t with ith respect to the financial conditions, and forecasts of the company, which are based on information currently available. These assumptions involve certain risks and uncertainties,
Chubu Electric Power — Q1 FY2014 Earnings Presentation on 6ix