Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — FY2023 Earnings Presentation
42 slides from Tokyo Gas's earnings presentation, Apr 25, 2024
Slide 1: FY2023 Financial Results ended March, 2024
Lf; FY2023 Financial Results ended March, 2024 April 25, 2024 "E TOKYO GAS TSE:9531 [Revised on May 9*, 2024)
Slide 2: Today's Key Messages
Today's Key Messages 2 Hl ® Consolidated FY2023 saw a YoY fall in both sales and profits driven by a drop in Energy Solution sales stemming from a decrease in unit price due to resource costs adjustment, and by a decline in Energy Solution profits resulting partly from a change in city gas unit pric
Slide 3: FY2023 Consolidated Financial Results
O01 FY2023 Consolidated Financial Results ended March, 2024 Note: The segment information disclosed for FY2023 and FY2022 reflects new segment classifications that went into effect from FY2023 as a result ofa restructuring of our system for providing services to local governments. "FTOKYO GAS
Slide 4: FY2023 results: decrease in both sales and profit
Our results for FY2023 showed a decrease in both sales and profit (profit attributable to owners of parent). Net sales fell by 6,251 hundred million yen, or 19.0%, to 26,645 hundred million yen. This was mainly due to a drop in unit price resulting from resource cost adjustments in the Energy Soluti
Slide 5: Profit attributable to owners of parent decreased
Profit attributable to owners of parent decreased by 1,110 hundred million yen, or 39.5%, to 1,699 hundred million yen. 4
Slide 6: Net sales and segment profit by segment
This slide shows net sales by segment and segment profit, which is operating profit plus equity income/loss of subsidiaries, and changes thereof. 5
Slide 7: Profit analysis for each segment
This slide is a profit analysis for each segment. The 1,616 hundred million yen profit decline in the Energy Solution segment was primarily attributable to a 1,347 hundred million yen drop in gross margin mainly due to the sliding time lag effect in the city gas business and a 157 hundred million ye
Slide 8: Gas sales volume in FY2023
The overall gas sales volume in FY2023 was 11,303 million m3, down 10.1%, mainly due to lower demand from residential customers because of high temperatures and other factors, as well as lower demand from customers that use gas exclusively for power generation. 7
Slide 9: Electricity sales volume in FY2023
The overall electricity sales volume in FY2023 was 25,479 million kWh, down 26.0%. The retail sales volume increased 11.8%, mainly due to an increase in the number of contracts, while the wholesale and other sales volume decreased 46.3%. 8
Slide 10: Shareholder return: dividend and stock repurchases
In terms of shareholder return, we have increased our annual dividend by 5 yen per share compared to the previous fiscal year to 70 yen per share, in accordance with our shareholder return policy of aiming for a total return ratio of around 40%. We will also conduct stock repurchases of up to 400 hu
Slide 11: FY2024 Full Year Forecast
o2 FY2024 Full Year Forecast "F TOKYO GAS 10
Slide 12: Key figures and investment plans of medium-term plan
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. In FY2024, ROA and ROE of 2.1% and 4.7%, respectively, are expected to be lower than the previous year’s figures and the medium-term plan targets due
Slide 13: Segment ROA outlook for FY2024
This slide shows the segment ROA outlook in our corporate plan for FY2024 and the actual performance in FY2023. There is a divergence between the single-year forecast and the 4% ROA indicated in the medium-term plan, but we will strengthen our performance management based on individual ROA targets s
Slide 14: FY2024 forecast: decrease in sales and profit
For FY2024, we forecast a decrease in both sales and profit (profit attributable to owners of parent). Net sales are projected to fall by 225 hundred million yen, or 0.8%, to 26,420 hundred million yen. This is mainly due to a decline in unit price as a result of resource cost adjustments, despite a
Slide 15: Forecast continued: actuarial differences amortization
prices and 103 hundred million yen for the amortization of actuarial differences, is projected to be 913 hundred million yen. 13
Slide 16: Segment profit forecast
This is our segment profit forecast. 14
Slide 17: Changes from the previous year's results
This slide illustrates the changes from the previous year’s results. 15
Slide 18: Energy Solution segment profit forecast
The 1,030 hundred million yen profit decrease expected for the Energy Solution segment is due to a decrease in gross margin primarily owing to the sliding time lag effect for city gas, the impact of the systemic changes in the electricity business to be implemented from FY2024, and an increase in co
Slide 19: City gas sales volume forecast FY2024
The city gas sales volume in FY2024 is projected to increase by 1.1% overall to 11,422 million m3, mainly due to a recovery from the previous fiscal year’s decrease in the sales volume to residential customers caused by high temperatures. 17
Slide 20: Electricity sales volume forecast FY2024
The sales volume to retail customers is projected to decrease by 5.6% overall to 24,060 million kWh due to a decrease in wholesale, despite an increase in sales owing to an increase in the number of customers. 18
Slide 21: Network segment profit forecast
The 51 hundred million yen profit increase in the Network segment is mainly due to a recovery from the previous year’s decrease in third-party access revenue at Tokyo Gas Network caused by high temperatures. 19
Slide 22: Overseas segment profit forecast
The 41 hundred million yen profit increase in the Overseas segment is mainly due to an increase in profit following the expansion of the North American shale gas business. 20
Slide 23: Urban Development segment profit forecast
The 70 hundred million yen profit decrease in the Urban Development segment is due to a decrease in profit from the hotel business resulting from the closure for renovation for approximately one and a half year and a decrease in profit from real estate sales. 【Revised in red on May 9th, 2024】 21
Slide 24: Reference materials
Reference materials include the economic frame sensitivity table, crude oil prices and exchange rates, key topics during the period, and information on major overseas investments. Our initiatives in “realizing management mindful of capital costs and stock prices” will also be included here on a cont
Slide 25: Economic framework, Pension assets
Economic framework, Pension assets Economic framework Economic framework Forecast pyaezs AGS Exchange rate (¥/$) ees 144.58 135.50 Crude oil price ($/bbl) an 85.97 102.73 Avg. air temp ("C) ‘on 17.5 16.8 Pension assets Pension assets FY2022 Fy2021 F¥2020 Investment yield ( deducted) 2.21% 1.90% 0.37
Slide 26: Gas Gross Margin Sensitivity
Gas Gross Margin Sensitivity Impact of rising JCC (Japan Crude Cocktail Prices) by $1/bbl Impact on earnings (Unit: 100 million yen) 1Q 2Q 3Q 4Q Full year 1Q -1 7 +5 +3 oO 2a - -1 -9 +6 -4 Period 3Q - - “2 9 =il 4Q - - - -2 -2 Full year a! -8 -6 -2 °17 Impact of depreciation of the yen by ¥1/$ Impac
Slide 27: Crude oil price - Exchange rate
Crude oil price - Exchange rate Crude oil price (Japan Crude Cocktail Prices) ($/bbl) 120.00 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 ef - gs me 2023 mee FY2022 meee Y2021 Exchange rate (¥/$) 150.0 145.0 140.0 135.0 130.0 125.0 120.0 115.0 110.0 105.0 100.0 N RY ey ef Se FF mee
Slide 28: Realizing management mindful of capital costs and stock prices
Realizing management mindful of capital costs and stock prices 26 Trends in key indicators lactase PBR lof mere than one early ant # PeR move toa higherlevel °€% £2023 | £72024 | Reasons for change 2.00 30.00 1.80 1.60 25.00 eidid 20.00 1.20 total assets(including 1.00 1s ROA 4.5% 8.3% acquisition o
Slide 29: Major projects released
status/progress as appropriate. Major projects released Decembs Launch of of solar power Below are major projects announced following the start of the current medium-term management plan. Going forward, we will provide updates on their Plant in Ichikai Town, Tochigi Prefecture + Investment in Octopu
Slide 30: Key Topics in FY2023 (Excerpted from Press Releases)
Key Topics in FY2023 (Excerpted from Press Releases) FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Achieve both stable energy supply & decarbonization |Carbon-negative concrete used at Motomachi Elementary School in Yokohama (Apr. 13) Point acquisition of solar power
Slide 31: Key Topics in FY2023 (Excerpted from Press Releases)
Key Topics in FY2023 (Excerpted from Press Releases) FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Achieve both stable energy supply & decarbonization Commencement of the Joint Feasibility Study with Santos for Production and Export of e- Imethane in Australia (Nov.
Slide 32: Key Topics in FY2023 (Excerpted from Press Releases)
Key Topics in FY2023 (Excerpted from Press Releases) 30 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Achieve both stable energy supply & decarbonization joint demonstration of method of reducing methane emissions from paddy fields in the IPhilippines (Feb. 28) [Long
Slide 33: Key Topics in FY2023 (Excerpted from Press Releases)
Key Topics in FY2023 (Excerpted from Press Releases) FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Fully roll out Solutions business fAcauisition of real estate asset management company and entry into private REIT business (Apr. 3)” {Signing of comprehensive partners
Slide 34: Key Topics in FY2023 (Excerpted from Press Releases)
Key Topics in FY2023 (Excerpted from Press Releases) 3 2 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Fully roll out Solutions business Kigning of comprehensive partnership agreement for realizing a carbon neutral city in Tochigi ity (July 13) lLaunch of project for
Slide 35: Key Topics in FY2023 (Excerpted from Press Releases)
Key Topics in FY2023 (Excerpted from Press Releases) 33 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Fully roll out Solutions business [Introduction of renewable energy-derived J-Credit scheme at three Calbee sites at Kiyohara industrial Park (Oct. 19)*? \Tokyo Gas
Slide 36: Key Topics in FY2023 (Excerpted from Press Releases)
Key Topics in FY2023 (Excerpted from Press Releases) FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Fully roll out Solutions business [Signing of comprehensive partnership agreement for promoting carbon neutrality and realizing highly disaster-resilient urban developm
Slide 37: Key Topics in FY2023 (Excerpted from Press Releases)
Key Topics in FY2023 (Excerpted from Press Releases) 3 5 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Fully roll out Solutions business |Signing of partnership agreement for realizing 2050 Zero Carbon Chiyoda (Feb. 9) ISigning of comprehensive partnership agreement
Slide 38: Key Topics in FY2023 (Excerpted from Press Releases)
Key Topics in FY2023 (Excerpted from Press Releases) FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Fully roll out Solutions business [Cchigasaki City, Samukawa Town, and Tokyo Gas sign partnership agreement on urban |development toward a carbon-neutral future (Mar. 2
Slide 39: Key Topics in FY2023 (Excerpted from Press Releases)
Key Topics in FY2023 (Excerpted from Press Releases) FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Realize a flexible corporate culture resilient to change |Notification of Resolution to Acquire of Treasury Shares (Apr. 26) INihon L'Oreal and Tokyo Gas Real Estate re
Slide 40: Key Topics in FY2023 (Excerpted from Press Releases)
Key Topics in FY2023 (Excerpted from Press Releases) 38 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Progress and changes in disclosure matters: Notice of partial change regarding the transfer of Ishares in five Australian project holding companies by one of our sub
Slide 41: Overseas Projects
Overseas Projects 39 eg “BTOKYOGAS >, Ltd. All Rights 39
Slide 42: Cautionary Statement regarding Forward-looking Statements
"E 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