Tokyo Gas Co., Ltd. · TSE:9531

Tokyo Gas — Q2 FY2023 Earnings Presentation

35 slides from Tokyo Gas's earnings presentation, Oct 26, 2023

  1. Slide 1: FY2023 2Q Financial Results

    TSE:9531 FY2023 2Q Financial Results ended September, 2023 October 26, 2023

  2. Slide 2: Today’s Key Messages

    Today’s Key Messages 2  Consolidated FY2023 2Q sales fell while profits rose versus the same period last year. Factors include a drop in Energy Solution sales driven by lower sales volume for city gas and electricity, and an increase in electricity profits spurred by reduced procurement costs, amon

  3. Slide 3: FY2023 Consolidated Financial Results

    01 FY2023 Consolidated Financial Results ended September, 2023 Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  4. Slide 4: Highlights: Sales Down, Profit Up

    FY2023 2Q Consolidated Results Sales, Interest, etc. (Apr. 1, 2023 –Sep. 30, 2023) vs. FY2022 2Q 4 Highlights: Sales Down, Profit Up (+/- indicate impact on profit, 100 million yen) Net sales -885 Decrease in Energy Solution sales driven by lower sales volume for city gas and electricity, etc. Opera

  5. Slide 5: 2Q Results: Sales and Operating Profit/Loss by Business Segments

    FY2023 2Q Results: Sales and Operating Profit/Loss by Business Segments vs. FY2022 2Q 5 (unit : 100 million yen) Segment Profit(Operating profit Net sales*3 + Equity income/loss of subsidiaries) FY2023 2Q FY2022 2Q FY2023 2Q FY2022 2Q Results Results Change ％ Results Results Change ％ Energy solution

  6. Slide 6: 2Q Results: Ordinary Profit Analysis vs. FY2022 2Q

    FY2023 2Q Results : Ordinary Profit Analysis vs. FY2022 2Q 6 (unit : 100 million yen)  Increase in city gas gross margin +23 Change in volume, etc. -158 (incl. change due to temp effect -32), Energy sliding time lag effect +181 solution (Net sales) -673: Change in volume, etc. -511, sliding time la

  7. Slide 7: 2Q Consolidated Gas Sales Volume/ Number of Customers

    FY2023 2Q Consolidated Gas Sales Volume/ Number of Customers vs. FY2022 2Q 7 City Gas sales volume: Number of customers(City Gas), LNG sales volume, Average temperature （ Unit： mil. ㎥） 5,884 FY2023 FY2022 -756mil.㎥ (-12.9%) 6,000 2Q 2Q Change including temperature effect Number of customers for city

  8. Slide 8: 2Q Consolidated Electricity Sales Volume/ Number of Customers

    FY2023 2Q Consolidated Electricity Sales Volume/ Number of Customers vs. FY2022 2Q 8 Electricity sales volume： New electricity retail customers won by Tokyo Gas （ Unit：mil. kWh ） Quarter (thousands) Cumulative (thousands) -4,448mil. kWh 300 4,000 18,000 3,697 (-26.1%) 3,612 17,018 3,475 3,314 3,090

  9. Slide 9: FY2023 Full Year Forecast

    02 FY2023 Full Year Forecast Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  10. Slide 10: Highlights: Sales Up, Profit Up (vs. Previous Forecast)

    FY2023 Consolidated Forecast Sales, Interest, etc. (Apr. 1, 2023 – Mar. 31, 2024) 10 Highlights: Sales Up, Profit Up (vs. Previous Forecast) (+/- indicate impact on profit, 100 million yen) vs. Previous Forecast Net sales +690 Increase in Energy Solution sales associated with elevation of city gas u

  11. Slide 11: Consolidated Forecast Assets, Cash Flows, etc.

    FY2023 Consolidated Forecast Assets, Cash Flows, etc. vs. FY2022 11 (Unit: 100 million yen, balance sheet figures are as of the corresponding term-end) FY2023 FY2022 Reference Forecast Results Total assets (a) 37,560 35,814 Increase in new capital expenditures, investments & financing, etc. Increase

  12. Slide 12: Investments (Capex, Investments and financing)

    FY2023 Investments （Capex , Investments and financing） 12 (Unit: 100 million yen) Previous FY2022 Forecast Main Items Change % Change ％ Forecast Results Capital Expenditure Energy solution 1,050 985 65 6.6 747 303 40.5 Production facilities : 58 Other Production facilities, etc. City gas*1 491 487 4

  13. Slide 13: Investments: Breakdown of the Medium-Term Management Plan

    FY2023 Investments （Capex , Investments and financing） 13 Reference: Breakdown of the Medium-Term Management Plan for FY 2023-2025 (Unit: 100 million yen) FY2023 Previous FY2020-22 FY2023-25 Main Items Forecast Forecast Results Plan 4,758 6,500 Overseas, Renewable power, Urban Development, etc. Grow

  14. Slide 14: Full Year Forecast: Sales and Operating Profit/Loss by Business Segments

    FY2023 Full Year Forecast: Sales and Operating Profit/Loss by Business Segments vs. Previous Forecast 14 (unit : 100 million yen) Segment Profit(Operating profit Net sales*3 + Equity income/loss of subsidiaries) FY2023 Previous FY2023 Previous Forecast Forecast Change ％ Forecast Forecast Change ％ En

  15. Slide 15: Forecast: Ordinary Profit Analysis vs. Previous Forecast

    FY2023 Forecast: Ordinary Profit Analysis vs. Previous Forecast 15 (unit : 100 million yen) Energy  Decrease in city gas gross margin -140: solution Change in volume, etc. -35 (incl. change due to temp effect -17), -27 sliding time lag effect -105 (-2.0%) FY2023 (Net sales) +275: Change in volume,

  16. Slide 16: Full Year Forecast: Segments vs. FY2022

    FY2023 Full Year Forecast: Sales and Operating Profit/Loss by Business Segments vs. FY2022 16 (unit : 100 million yen) Segment Profit(Operating profit Net sales *3 + Equity income/loss of subsidiaries) FY2023 FY2022 FY2023 FY2022 Forecast Results Change ％ Forecast Results Change ％ Energy solution*1

  17. Slide 17: Forecast: Ordinary Profit Analysis vs. FY2022

    FY2023 Forecast: Ordinary Profit Analysis vs. FY2022 17 (unit : 100 million yen)  Decrease in city gas gross margin -1,623 Energy Change in volume, etc. -106 (incl. change due to temp effect +6), solution sliding time lag effect -1,517 -2,343 (Net sales) -3,172: Change in volume, etc. -464, sliding

  18. Slide 18: Full Year Forecast Consolidated Gas Sales Volume/ Number of Customers

    FY2023 Full Year Forecast Consolidated Gas Sales Volume/ Number of Customers 18 City Gas sales volume: Number of customers(City Gas), LNG sales volume, Average temperature （ Unit： mil. ㎥） VS. Previous Forecast Forecast Previous Change FY2022 Change Forecast Results 15,000 -61mil.㎥ (-0.5%) including

  19. Slide 19: Full Year Forecast Consolidated Electricity Sales Volume/ Number of Customers

    FY2022 Full Year Forecast Consolidated Electricity Sales Volume/ Number of Customers 19 Electricity sales volume： New electricity retail customers won by Tokyo Gas （ Unit：mil. kWh ） Cumulative (1,000s) VS. Previous Forecast 35,000 34,445 4,000 3,697 3,611 -510mil. kWh 3,314 3,475 (-1.9%) 3,500 3,190

  20. Slide 20: Consolidated Forecast: Factors for Changes from FY2022

    FY2023 Consolidated Forecast (Apr. 1, 2023 – Mar. 31, 2024) vs. FY2022 20 Factors for Changes from FY2022 Ordinary profit (100 million yen) 4,088 64 Increase in profit from Urban Development business -328 Decrease in profit from Overseas -325 -15 business Decrease in profit Decrease in profit Approx

  21. Slide 21: Reference Materials

    03 Reference Materials Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  22. Slide 22: Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate

    Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate 22 Impact of rising JCC（Japan Crude Cocktail Prices) by $1/bbl (Unit: 100 million yen) Impact on earnings 3Q 4Q Full year 3Q -1 -12 -13 Period 4Q - -1 -1 Full year -1 -13 -14 Impact of depreciation of the yen by ¥1/$ (Unit:

  23. Slide 23: Crude oil price・Exchange rate

    Crude oil price・Exchange rate 23 Crude oil price（Japan Crude Cocktail Prices） ($/bbl) 120.00 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 FY2023 FY2022 FY2021 Exchange rate (¥/$) 150.0 145.0 140.0 135.0 130.0 125.0 120.0 115.0 110.0 105.0 100.0 FY2023 FY2022 FY2021 Copyright© TOKYO

  24. Slide 24: Realizing management mindful of capital costs and stock prices

    Realizing management mindful of capital costs and stock prices 24 (1) Analysis of current situation • Our PBR has remained below 1.0 since FY2019 • Contributing factors:  Lower profit levels, plus lower ROE/ROA levels due to reasons such as investment-related increase in assets  Greater market lib

  25. Slide 25: Realizing management mindful of capital costs and stock prices

    Realizing management mindful of capital costs and stock prices 25 (3) Progress in improvement efforts ① Efforts to improve efficiency & profitability  Implementation of business portfolio management • Started to regularly review ROA versus WACC for each internal company and key business subsidiary

  26. Slide 26: Mapping of key business segment changes resulting from Oct. 2023 organizational realignment

    Mapping of key business segment changes resulting from Oct. 2023 organizational realignment 26 ・Certain functions of the business segments were repositioned as part of the realignment of the Tokyo Gas Group’s organization in October 2023. These changes will be reflected in our financial report discl

  27. Slide 27: (Ref.) FY2023 Full Year Forecast: Segments under New Classification

    (Ref.) FY2023 Full Year Forecast: Sales and Operating Profit/Loss by Business Segments 27 (unit : 100 million yen) Net sales*3 Segment Profit(Operating profit + Equity income/loss of subsidiaries) ※5 ※5 Reference Reference forecasts FY2023 Change forecasts FY2023 Change Forecast Forecast （New （New S

  28. Slide 28: Key Topics in FY2023 2Q: 3 Core Strategies

    Key Topics in FY2023 2Q (Excerpted from Press Releases) 28 Below are key initiatives of the 3 core strategies of the FY2023-2025 Medium- term Management Plan, which are based on our material issues. The strategies are: “Achieve both stable energy supply & decarbonization,” “Fully roll out Solutions

  29. Slide 29: Initiatives: Achieve both stable energy supply & decarbonization

    Key Topics in FY2023 2Q (Excerpted from Press Releases) 29 FY2023-2025 Medium-term Management Plan: Material issues Initiatives for the 3 core strategies Carbon-negative concrete used at Motomachi Elementary School in Yokohama (Apr. 13) Joint acquisition of solar power generation business in Okayama

  30. Slide 30: Initiatives: Fully roll out Solutions business

    Key Topics in FY2023 2Q (Excerpted from Press Releases) 30 FY2023-2025 Medium-term Management Plan: Material issues Initiatives for the 3 core strategies Acquisition of real estate asset management company and entry into private REIT business (Apr. 3)*2 Signing of comprehensive partnership agreement

  31. Slide 31: Initiatives: Fully roll out Solutions business (continued)

    Key Topics in FY2023 2Q (Excerpted from Press Releases) 31 FY2023-2025 Medium-term Management Plan: Material issues Initiatives for the 3 core strategies Signing of comprehensive partnership agreement for realizing a carbon neutral city in Tochigi City (July 13) Launch of project for increasing soci

  32. Slide 32: Initiatives: Realize a flexible corporate culture resilient to change

    Key Topics in FY2023 2Q (Excerpted from Press Releases) 32 FY2023-2025 Medium-term Management Plan: Material issues Initiatives for the 3 core strategies Notice of Shares Buyback (Progress Report) (July 4) - Realize a flexible corporate culture Notice of Shares Buyback (Progress Report) (Aug. 2) - r

  33. Slide 33: Key Topics in FY2023 2Q: Regional Co-creation Company

    Key Topics in FY2023 2Q (Excerpted from Press Releases) 33 Here is a look at one example of how we are advancing the three core strategies of our FY2023-2025 Medium-term Management Plan. This particular initiative contributes to our efforts to fully roll out the Solutions business. We established th

  34. Slide 34: Overseas Projects

    Overseas Projects 34 9 1 2 4 5 7 3 6 8 Area No Country Subject Main Business Participation year Eagle Ford Upstream Shale gas 2016 TG Natural Resources Upstream Shale gas 2017 1 U.S.A TGES America Downstream Energy Service 2015 North America Birdsboro Power Plant Downstream Natural gas power 2017 Ak

  35. Slide 35: Cautionary Statement regarding Forward-looking Statements

    < 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 the future per

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