Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — Q3 FY2024 Earnings Presentation
37 slides from Tokyo Gas's earnings presentation, Jan 31, 2025
Slide 1: FY2024 3Q Financial Results
FY2024 3Q Financial Results ended December, 2024 January 31, 2025 "TOKYO GAS TSE:9531
Slide 2: Working Toward Continuous Corporate Value Enhancement
o1 Working Toward Continuous Corporate Value Enhancement "R TOKYO GAS
Slide 3: Reforms under 2030 Vision and Medium-Term Management Plan
Based on our 2030 Vision, we have been working on reforms to become a leader in next generation energy systems while creating value with our customers, society and business partners. In particular, we have been promoting both investments in growth and improvements in efficiency through strengthening
Slide 4: Asset replacements and divestitures
sequentially. In addition, we have made significant asset replacements in our overseas businesses, including the sale of our Australian LNG business. In the existing domestic energy domain, we are strengthening our customer base and promoting thorough efficiency improvement through the use of DX and
Slide 5: Improving capital efficiency and ROE targets
On the other hand, the Company recognizes further effort is needed to improve capital efficiency, due in part to the increase in equity capital from our strong financial results over the past 2 years. We recognize that a ROE of 8% for FY2025, the final year of our mid-term management plan, is someth
Slide 6: Measures to achieve 8% ROE in FY2025
We will explain the consideration status of specific measures to enhance corporate value. First, we are considering specific measures to achieve 8% ROE in FY 2025 as part of our single-year plan for FY 2025. On the profit side, the numerator of ROE, we expect an improvement from FY 2024 levels due t
Slide 7: Capital policy and management plan timing
With regard to capital policy, we will present the optimal capital structure, appropriate level of equity capital, cash allocation, etc., consistent with the transformation of our business portfolio. We are in the process of refining the business plan for FY2025 and the key themes for the management
Slide 8: Additional share repurchase
This slide explains the additional share repurchase. In addition to achieving 8% ROE for FY 2025, we are continuing agile and large-scale share buybacks from the current fiscal year to the next to reach an appropriate level of equity capital for medium- and long-term ROE improvement. Of these measur
Slide 9: Cash allocation trends
This section presents cash allocation trends based on our balance sheet management approach and actions planned for the final year of the Medium-Term Management Plan. The result for the current mid-term plan in the center is the cumulative result over the past two-year period. Compared to the three
Slide 10: Corporate Value Enhancement Committee
The "Corporate Value Enhancement Committee" was established to further, and more intensively, discuss and verify our efforts to enhance our corporate value with regard to our business portfolio strategy and capital policy from the perspective of the capital market. The contents of the Committee's di
Slide 11: FY2024 Consolidated Financial Results
02 ) a 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
Slide 12: Key Topics of FY2024 3Q Consolidated Results
Key Topics of FY2024 3Q Consolidated Results 10m (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 fluctuatio
Slide 13: Consolidated Financial Results
FY2024 Consolidated Financial Results ended December, 2024 "R TOKYO GAS 11
Slide 14: Net sales and profit decline for nine months
Both sales and profits decreased for the nine months ended in December 31, 2024. Net sales decreased by 589 hundred million yen. This was mainly due to a decrease in unit prices due to resource cost adjustments in the Energy Solution segment. Specifically, it was primarily due to the fact that raw m
Slide 15: Net sales and segment profit by segment
This slide shows net sales by segment and segment profit, which is operating profit plus equity income of subsidiaries, and the changes thereof. 13
Slide 16: Profit analysis by segment
This slide shows the profit analysis for each segment. The 626 hundred million yen decrease in profit of the Energy Solution segment mainly reflects a 430 hundred million yen decrease in gross margin due in part to a decrease in the sliding time lag effect, etc. in the city gas business and a 143 hu
Slide 17: City gas sales volume
City gas sales volume until 3Q FY2024 increased by 0.1% to 7,961 million m3, which in total is close to the level of the corresponding period of the previous year. This was mainly due to an increase in wholesale volume resulting from higher demand from wholesale customers, which was partially offset
Slide 18: Electricity sales volume
Total electricity sales volume until 3Q FY2024 decreased by 8.7% to 16,795 million kWh. Retail electricity sales volume rose by 7.7%, mainly due to higher demand owing to an increase in the number of customers, while the sales volume to wholesale and others fell by 26.0%. 16
Slide 19: FY2024 Full Year Forecast
FY2024 Full Year Forecast "R TOKYO GAS 17
Slide 20: Medium-term management plan key figures and investment plans
This slide shows the status of the key figures and investment plans of our Medium-term Management plan, which covers the period from FY2023 to FY2025. 18
Slide 21: Segment ROA outlook for FY2024
This slide shows our segment ROA outlook for FY2024 compared to our previous outlook. 19
Slide 22: FY2024 full year forecast revision
For the FY2024 full year, we have raised our forecast for net sales, and lowered our forecast for profit attributable to owners of parent. As for our economic framework for January onward, which serves as the basis for our earnings forecast, our forecast foreign exchange rate is 150 yen to the dolla
Slide 23: Forecast by segment versus previous forecast
This slide shows our forecast for net sales and profit by segment and changes from the previous forecast. 21
Slide 24: Energy Solution segment profit forecast
The 116 hundred million yen decrease in our profit forecast for the Energy Solution segment reflects the lowered gross margin forecast, owing in part to a lower forecast for profits from sliding time lag effect in city gas after reflecting the rise in crude oil prices and the impact of the depreciat
Slide 25: Segment Information: Energy Solution
Segment Information: Energy solution 23 H Summary of Results Fy2024 Previous — mL Forecast Forecast “range ® Results cone Te Segment Assets 17,750 1780-14008 17,083 667 39 ROA (%) 6.2 68 0.6 “8.8 12.0 5.8 48.3 Depreciation 749* 758" -* “1.2 699 50 7A Total 905 1,053 -148 “14.1 688 217 31.5 portion f
Slide 26: City gas sales volume forecast
Our forecast for the overall city gas sales volume has been reduced by 235 million m3, or 2.0%, from the previous forecast, reflecting a decrease in the forecast for sales volumes to residential customers due to high temperatures, as well as a decrease in the forecast for demand from industrial cust
Slide 27: Electricity sales volume forecast
Our overall electricity sales volume forecast is reduced by 483 million kWh, or 2.0%, reflecting a slight decrease based on the latest customer count and contract status. 25
Slide 28: Network segment profit forecast
Our forecast for segment profit of the Network segment is unchanged from the previous forecast. 26
Slide 29: Overseas segment profit forecast
The 43 hundred million yen increase in the profit forecast for the Overseas segment reflects a rise in our sales profit forecast mainly due the impact of the depreciation of the yen at the end of December and a decrease in expenses. 27
Slide 30: Urban Development segment profit forecast
For the Urban Development segment, we have raised our profit forecast by 15 hundred million yen, reflecting an increase in our forecast for profit from the sale of real estate. 28
Slide 31: Changes in profit by element
This slide illustrates the changes in profit for each major element of change from the previous fiscal year. 29
Slide 32: Reference materials
These reference materials include the economic frame sensitivity table, crude oil prices and exchange rates, and information on major overseas investments. While main topics of our initiatives in “realizing management mindful of capital costs and stock prices” are stated at the beginning of this pre
Slide 33: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate
Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate 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 see
Slide 34: Crude oil price - Exchange rate
Crude oil price - Exchange rate Crude oil price (Japan Crude Cocktail Prices) ($/bb!) 120.00 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 ¢ £ g Ss Ra s OF 2024 meeFY2023 mgeF¥2022 Exchange rate (¥/$) 160.0 155.0 150.0 145.0 140.0 135.0 130.0 125.0 120.0 ef £ s Ra OF 2024 meq FY2023 meq FY2022 _
Slide 35: Management mindful of capital costs and stock prices: progress
Real stock prices 338 *PBR, PER, ROA and ROE of FY2024 as of December 31, 2024 ng manage of capital costs a [Progress of our actions] <PBR - PER> <ROA - ROE> PAR Achieve PBR of more than one early and PER sae move to a higher level asad 1.80 es 25.00 140 es, 1.20 1.00 15.00 0.80 0.60 0.40 0.20 0.00
Slide 36: Overseas Projects
Overseas Projects 34 Area No Country Subject Eagle Ford TG Natural Resources TGES America ng OH WEA Beaters Longbow ‘ARM Energy Holdings © Mexico Bayi © Molaysia_ GASMALASIATBRGL 1992 YSI8__GAS MALASIA ENERGY ADVANCE Sdn.8hd. 2014 Bang bo Downstream Natural gas power 2016 @ thailand ~GWHAMT Downstre
Slide 37: Cautionary Statement regarding Forward-looking Statements
"F 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 t