Hokkaido Electric Power Company,incorporated · TSE:9509
Hokkaido Electric Power Company,incorporated — FY2023 Earnings Presentation
39 slides from Hokkaido Electric Power Company,incorporated's earnings presentation, May 11, 2023
Slide 1: Financial Results for the Year Ended March 31, 2023
■Financial Results for the Year Ended March 31, 2023 May 11, 2023 Hokkaido Electric Power Co., Inc.
Slide 2: Table of Contents
■Table of Contents ■Financial Results and Forecasts ■Management Approach ・Consolidated Business Results/Financial Status ・・・ 3 ・Efforts to Accelerate the Restart of Tomari ・・・ 26 Nuclear Power Plant ・Consolidated Statement of Operations ・・・ 4 ・Plans for new construction and decommissioning of major
Slide 3: Financial Results and Forecasts
■Financial Results and Forecasts 2
Slide 4: Consolidated Business Results/Financial Status
■Consolidated－ Business Results/Financial Status Business results （Billion yen） April 1, 2022 – April 1, 2021 – Increase/ Comparison March 31, 2023 March 31, 2022 Decrease (A) (B) (A)/(B) % (A)-(B) Operating Revenue 888.8 663.4 225.4 34.0 Operating Profit(loss) (22.5) 24.9 (47.5) ー Ordinary Profit(l
Slide 5: Consolidated Statement of Operations
■Consolidated－ Statement of Operations （ Billion yen ） April 1, 2022 – April 1, 2021 – March 31, 2023 March 31, 2022 Increase/Decrease Comparison (A) (B) (A)-(B) (A)/(B) % Operating Revenues 888.8 663.4 225.4 34.0 Electricity utility operating 835.9 625.4 210.4 33.6 Revenue Ordinary revenue Other bu
Slide 6: Outline of Consolidated Financial Results
■Outline of Consolidated Financial Results Operating Sales increased by 225.4 billion yen from the previous fiscal year to 888.8 billion Revenue yen. This was the result of an increase in the fuel cost adjustments that is incidental (Increased) to rising fuel prices and an increase in the amount of
Slide 7: Year-on-year changes in ordinary income/loss
■Consolidated Financial Results for FY2023 (Ending March 2023) －Year-on-year changes in ordinary income/loss Impact from retail and electricity (Unit: 100 million yen) sales volume to other companies FY2023 Results (Comparison with +62 the previous year) Increased hydro power generation ・Impact of e
Slide 8: Forecasts of Consolidated Financial Performance for FY2024
■Forecasts of Consolidated Financial Performance for FY2024 (Ending March 2024) <Forecast of Our Consolidated Management Performance in FY2023> On January 26, 2023, we applied for an increase in our retail electricity rate for the regulated section to the authorities, and the application is currentl
Slide 9: FY2023 Year-End Dividends and FY2024 Dividend Forecast
■ FY2023 Year-End Dividends and FY2024 Dividend Forecast FY2023 Year-End Dividend Regarding the year-end dividend for fiscal 2022, as we already announced on January 26, 2022, the Board of Directors determined to pass it. We sincerely apologize to our shareholders. FY2024 Dividend Forecasts We canno
Slide 10: Financial Results Supplementary Materials
■ Financial Results Supplementary Materials 〇Consolidated; Electricity Sales 〇Monthly Retail Electricity Sales Trends at HEPCO 〇Consolidated; Statement of Operations（Revenue） 〇Consolidated; Power Supply 〇Consolidated; Statement of Operations（Expenses and Ordinary Profit/loss） 〇Consolidated; Segment
Slide 11: Consolidated; Electricity Sales
Consolidated; Electricity Sales ・Retail electricity sales increased 8.0% year on year to 23,932 million kWh, mainly due to new customer acquisitions. ・The amount of electric power we sold to other utilities totaled 7,116 million kWh, down 8.3% year-on-year, due to a decrease in the amount we sold to
Slide 12: Monthly Retail Electricity Sales Trends at HEPCO
Monthly Retail Electricity Sales Trends at HEPCO （GWh, ％） FY2023 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Total Residential 756 650 510 551 575 548 556 641 729 991 824 726 8,057 Low-voltage customers Commercial and industrial 183 104 74 85 94 86 86 106 183 351 318 235 1,905 Subtota
Slide 13: Consolidated; Statement of Operations (Revenue)
Consolidated; Statement of Operations (Revenue) (Unit: billion yen) April 1, 2022 – April 1, 2021 – Increase / Comparison March 31, 2023 March 31, 2022 Decrease Major cause of increase/decrease (A)/(B)％ (A) (B) (A) - (B) Operating Revenue 888.8 663.4 225.4 34.0 Electric utility operating revenue 835
Slide 14: Consolidated; Power Supply
Consolidated; Power Supply ・ While all generators at the Tomari Power Plant were shut down, we were able to maintain a stable power supply thanks to cooperation from our customers in saving electricity, a water flow rate surpassing the average at 107.3%, and appropriate operation of our facilities.
Slide 15: Consolidated; Statement of Operations (Expenses and Ordinary Profit/loss)
Consolidated; Statement of Operations (Expenses and Ordinary Profit/loss) (Unit: billion yen) April 1, 2022 – April 1, 2021 – Increase / Comparison March 31, 2023 March 31, 2022 Decrease Major cause of increase/decrease (A) (B) (A) - (B) (A)/(B)％ Electric utility operating expenses 864.3 604.9 259.4
Slide 16: Consolidated; Segment Information
Consolidated; Segment Information ・Sales in the Hokkaido Electric Power segment increased by 181.7 billion yen year-on-year to 779.6 billion yen. This was the result of an increase in the fuel cost regulatory charge that is incidental to rising fuel prices and an increase in the amount of our retail
Slide 17: Consolidated; Statements of Cash Flow
Consolidated; Statements of Cash Flow ・Cash flow used in operating activities was a 0.5 billion outflow, down 102.9 billion yen from a year earlier. This was mainly due to pretax losses and increased inventory due to higher fuel prices. ・Cash flow used in investing activities was 85.2 billion yen ou
Slide 18: Time Lag Impact Incurred by Fuel Cost Adjustment System
Time Lag Impact Incurred by Fuel Cost Adjustment System 【FY2023 Results】 FY2022 Approx. 29.6 Billion yen loss FY2023 Approx. 28.1 Billion yen loss Income Price cap (55,800 yen/kl) Impact from Impact from loss exceeding price cap: eliminating price cap: –19.9 billion yen +14.3 billion yen Fuel procur
Slide 19: Expense breakdown: Personnel
Expense breakdown （Two Companies Total*） ◆Personnel （Billion yen） April 1, 2022 – April 1, 2021 – Increase/ March 31, 2023 March 31, 2022 Decrease Major factors for increase/decrease (A) (B) (A)-(B) Personnel 55.8 55.0 0.8 【Amortization of actuarial gains and losses】 *Actuarial gains and losses are
Slide 20: Expense breakdown: Fuel and Purchased Power
Expense breakdown （Two Companies Total*） ◆Fuel and Purchased Power （Billion yen） April 1, 2022 – April 1, 2021 – Increase/ March 31, 2023 March 31, 2022 Decrease Major factors for increase/decrease (A) (B) (A)-(B) 【Cause of increase】 Fuel and ・Rise in fuel prices [193.4] 533.5 283.4 250.0 Purchased
Slide 21: Expense breakdown: Maintenance, Depreciation
Expense breakdown （Two Companies Total*） ◆Maintenance （Billion yen） April 1, 2022 – April 1, 2021 – Increase/ March 31, 2023 March 31, 2022 Decrease Major factors for increase/decrease (A) (B) (A)-(B) Maintenance 67.0 61.5 5.5 ・Increase in repair costs associated Generation 35.1 28.0 7.0 with power
Slide 22: Expense breakdown: Interest Expenses, Other Expenses
Expense breakdown （Two Companies Total*） ◆Interest Expenses （Billion yen） April 1, 2022 – April 1, 2021 – Increase/ March 31, 2023 March 31, 2022 Decrease Major factors for increase/decrease (A) (B) (A)-(B) [Interest(on average)%] [0.65] [0.67] [(0.02)] Interest Expenses 9.5 9.5 (0.0) ◆Other Expense
Slide 23: Key Factors・Sensitivity Factors
Key Factors・Sensitivity Factors Key Factors April 1, 2022 – April 1, 2021 – Increase/ March 31, 2023 March 31, 2022 Decrease (A) (B) (A)-(B) Foreign Exchange Rate (Yen/$) 135 112 23 CIF Crude Oil Price ($/barrel) 102.7 77.2 25.5 Foreign coal CIF ($/t) 358.9 160.9 198.0 LNG CIF ($/t) 931.8 621.6 310.
Slide 24: Consolidated Statements of Balance Sheets
Consolidated Statements of Balance Sheets (Unit: billion yen) As of March 31, As of March 31, Increase/ Decrease Major factors for increase/decrease 2023(A) 2022(B) (A)-(B) Assets 2,093.3 1,992.8 100.4 · Increase in inventories [55.0] Liabilities 1,835.2 1,707.1 128.0 · Decrease in interest-bearing
Slide 25: Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income （Billion yen） April 1, 2022 – April 1, 2021 – Increase/ March 31, 2023 March 31, 2022 Decrease (A) (B) (A)-(B) Profit (21.8) 7.3 (29.1) Other Comprehensive Income (2.8) (4.1) 1.3 Valuation difference on a
Slide 26: Management Approach
m™ Management Approach 25
Slide 27: Efforts to Accelerate the Restart of Tomari Nuclear Power Plant
■Efforts to Accelerate the Restart of Tomari Nuclear Power Plant （Review Status） Establishing a standard ground motion level ◼ On April 28, 2023, we explained the validity of basic earthquake ground motion, which was based on an evaluation of "Earthquake ground motion estimated with a specific epice
Slide 28: Plans for new construction and decommissioning of major power supply facilities
■Plans for new construction and decommissioning of major power supply facilities (HEPCO) ◼ We made our FY2023 supply plan*1 and submitted it to the Organization for Cross-regional Coordination of Transmission Operators on February 24. ◼ In the plan, the start of construction and operation for the Is
Slide 29: Retail electricity sales: Low-voltage regulated rate
■Retail electricity sales - Low-voltage regulated rate 1 (scope of rate review) ◼ Regarding the low-voltage regulated rate, we applied for amendment of the general provisions for retail service for an increase of low voltage electricity rate by 34.87% to the Authority on January 26, 2023 to cope wit
Slide 30: Retail electricity sales: data used for the review
■Retail electricity sales - Low-voltage regulated rate 2 (data used for the review) Amount of power sold *excluding self-consumption Power generated/purchased Before review (average) 318 358 Purchased in wholesale electricity 卸電力市場購入 market 6 After review (average) 17 234 他社新エネ New energy Purchased
Slide 31: Retail electricity sales: high to extra-high voltage
■Retail electricity sales - high to extra-high voltage 1 (increases with the new rate) ◼ Regarding our high voltage and extra-high voltage services, we reviewed their rates and announced new rates on December 22, 2022; and we reviewed the rates, taking into account the change in wheeling costs due t
Slide 32: Retail electricity sales: fuel cost adjustment system
■Retail electricity sales - high to extra-high voltage 2 (fuel cost adjustment system) ◼ Regarding high voltage service and extra-high voltage service, in line with the rate change on April 1, 2023, we updated our power source configuration, which is the fundamental factor for the fuel cost adjustme
Slide 33: Retail electricity sales: newly introduced adjustment
■Retail electricity sales - high to extra-high voltage 3 (newly introduced adjustment) ◼ We introduced market price adjustment surcharge that is aimed to reflect fluctuations in the wholesale electricity market in electricity bills. ◼ When the average market price exceeds the baseline market price,
Slide 34: Electricity Retail Sales
■Electricity Retail Sales ◼ In the low voltage field, our share turned to 79.3% in FY2022, down 1.0% from the previous year (80.3%). ◼ In the high voltage/extra high voltage field, our market share turned to 86.8% in FY2022, up 12.2% from the previous year (74.6%). ■ Change in our share (kWh) in the
Slide 35: Approval of wheeling rates
■Approval of wheeling rates ◼ Under the new wheeling fee system (revenue cap system), our wheeling rates determined based on the approved revenue forecast were approved by the Minister of Economy, Trade and Industry on January 27, 2023. ◼ The rates will be applied for 5 years, from 2023 to 2027, and
Slide 36: Partial change in the investment contract for Class B preferred stocks
■Partial change in the investment contract for Class B preferred stocks ◼ Class B preferred shares issued in 2018 have a put option in exchange for money, and Class B preferred shareholders are entitled to acquire all or part of Class B preferred shares in exchange for money. ◼ Regarding the timing
Slide 37: HEPCO Group Management Vision 2030 - Management Goals for 2030
■HEPCO Group Management Vision 2030 -Management Goals for 2030 FY2021 FY2022 FY2023 2030 Vision Targets Actual Actual Actual Target profit ➤Phase I: min. 23.0B yen/year 41.1B yen 13.8B yen (29.2)B yen (Consolidated ordinary income) ➤Phase II: min. 45.0B yen/year Financial target ➤15%+ 13.8％ 13.7％ 11
Slide 38: Topics for Period After 3Q Results Announcement
■Topics for Period After 3Q Results Announcement Overview of business Date Description of effort plans related slides Jan. 27 2023 Approval of wheeling rates [NW] P 34 Rates for high-voltage and extra-high voltage services Feb. 17 2023 P 28 Based on the reviewed wheeling agreements [HD] Feb. 24 2023
Slide 39: For further information
This material is compiled based on data available as of May 10, 2023. The company makes no guarantee as to the reliability and integrity of such information, as this is not intended to serve as disclosure material as stipulated by the Financial Instruments and Exchange Law of Japan. Projections conc
Hokkaido Electric Power Company — FY2023 Earnings Presentation on 6ix