Chubu Electric Power Company,incorporated · TSE:9502
Chubu Electric Power Company,incorporated — 1H FY2011 Earnings Presentation
66 slides from Chubu Electric Power Company,incorporated's earnings presentation, November 2011
Slide 1: Investors Meeting 1st Half FY2011
I Investors t M Meeting ti 1st Half H lf FY 2011 November 2011 November, Note: The Company's p y fiscal yyear ((FY)) is from April p 1 to March 31of the following g yyear. FY2011 represents the fiscal year began in April 1, 2011, and ends in March 31, 2012. 2nd Quarter (2Q) represents six months end
Slide 2: Table of Contents
Table of Contents I Outline of Financial Results for Six Months Ended September 30, 2011 Summary of Six-Months Financial Results <1> ・・・・・・・・・・ 1 Summary of Six-Months Financial Results <2> ・・・・・・・・・・ 2 Electricity Sales ・・・・・・・・・・ 3 Generated and Recieved Power ・・・・・・・・・・ 4 Non-consolidated Stateme
Slide 3: Outline of Financial Results for Six-Months Ended September 30, 2011
I Outline of Financial Results for Six-Months Ended September 30, 2011 © 2011 Chubu Electric Power Co., Inc. All rights reserved.
Slide 4: Summary of Six-Months Financial Results <1>
Summary of Six-Months Financial Results <1> 1 [Consolidated] In the latest 2Q (settlement of accounts for 2Q has been conducted since 2000), we sustained an ordinary loss and net loss for the first time . (Billion yen,%) 2011/2Q 2010/2Q Change (A) (B) (A-B) (A B) (A-B)/B (A B)/B Operating revenues 1
Slide 5: Summary of Six-Months Financial Results <2>
Summary of Six-Months Financial Results <2> 92 < year-on-year comparison Factors for change in consolidated ordinary income (loss) > -Positive factors -Increase in unit sales price +33.1 billion yen -Negative factors -Decrease in nuclear power output -82.0 billion yen - Increase in fuel price -55.9
Slide 6: Electricity Sales
Electricity Sales 3 <Demand from customers under regulation> -Electric lighting Dropped 5.6% to 16.9 TWh as a result of moderate atmospheric temperatures leading to reduced air conditioner use, as well as customer’s power-saving efforts. -Electric El t i power Dropped D d 77.0% 0% tto 33.3 3 TWh as
Slide 7: Generated and Received Power
Generated and Received Power 4 -Hydro Increase by 0.3 TWh on year on year basis due to high water flow (flow rate for 2011/2Q:114.2%, FY2010/2Q:111.5%) -Nuclear Decreased by 7.3 TWh as a result of suspension of operations at the Hamaoka Nuclear Power Plant -Thermal Increased by 5.6 TWh as a result o
Slide 8: Non-consolidated Statements of Income <1>
Non-consolidated Statements of Income <1> 5 (Billion yen, %) [Principal changes] 2011/2Q 2010/2Q Change (A) (B) (A-B) (A-B)/B D Decrease iin electricity l t i it sales l revenues: -12.9 Electricity sales revenues 1,037.5 1,050.4 -12.9 -1.2 - Decrease in electricity sales volume: -46.0 - Increase in
Slide 9: Non-consolidated Statements of Income <2>
Non-consolidated Statements of Income <2> 6 (Billi yen, %) (Billion [P i i l changes] [Principal h ] 2011/2Q 2010/2Q Change - Retirement benefit: -14.1 （Actuarial differences: -9.5） (A) (B) (A-B) (A-B)/B Salaries and - Thermal: Th l +132.4 +132 4 101.4 113.9 -12.4 -10.9 employee benefits （Increase o
Slide 10: Non-consolidated Statements of Income <3>
Non-consolidated Statements of Income <3> 7 (Billi yen, %) (Billion 2011/2Q 2010/2Q Change (A) (B) (A-B) (A-B)/B [Principal changes] Operating income 17 1.7 139 8 139.8 -138 0 -138.0 -98 8 -98.8 -Dividends income: +2.5 Other revenues 12.4 4.7 7.7 163.9 Interest expense 17 3 17.3 19 3 19.3 -1.9 19 -1
Slide 11: Consolidated Statements of Income
Consolidated Statements of Income 8 (Billion yen, en %) 2011/2Q 2010/2Q Change (A) (B) (A-B) (A-B)/B Operating revenues 1 067 6 1,067.6 1 070 8 1,070.8 -3 2 -3.2 -0 3 -0.3 Electricity y business Operating expenses 1,060.8 929.5 131.2 14.1 Operating income (loss) 6.7 141.2 -134.5 -95.2 Operating reve
Slide 12: Segment Information
Segment Information 9 (Billion yen) 2011/2Q 2010/2Q Change Major factors for change (A) (B) (A-B) Sales from external customers 1,067.6 1,070.8 -3.2 Electricity Operating income* 3.0 136.3 -133.2 Sales from external customers 25.9 22.9 3.0 Chubu Incidental business 15.8 13.1 2.7 -Increase in gas and
Slide 13: Consolidated Financial Standing
Consolidated Financial Standing 10 ( illi yen)) (Billion 2011.9 2011.3 Change Major factors for change (A) (B) (A-B) Assets 5,518.0 5,331.9 186.0 -Increase in cash and deposits Liabilities 3,867.4 3,633.5 233.8 -Increase in interest-bearing debt Net assets 1,650.5 1,698.3 -47.8 -Decrease in retained
Slide 14: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows 11 (Billion yen) 2011/2Q 2010/2Q Change (A) (B) (A B) (A-B) Cash flows from operating 12.6 228.1 -215.5 activities Cash flows from investment -130.6 -168.5 37.9 activities Cash flows from financing 276.5 -97.1 373.7 activities Free cash flows -117.9 59.6 -177.5
Slide 15: Summary of Forecast for FY 2011 <1>
Summary of Forecast for FY 2011 <1> 12 (billion yen) - Consolidated FY 2011 forecast FY 2011 forecast FY 2011 forecast Change Change (Current) (Oct.4) (Jul.29) from Oct.4 from Jul 29 (A) (B) (C) (A)-(B) (A)-(C) Operating revenues 2,420.0 2,420.0 2,440.0 - -20.0 O Operating ti income i (loss) (l ) -1
Slide 16: Summary of Forecast for FY 2011 <2>
Summary of Forecast for FY 2011 <2> 13 < Factors F t for f change h in i consolidated lid t d nett income i (loss) (l ) from f Oct. O t 4 announcementt > -Positive factors - Income through a legal settlement of a lawsuit + 5.0 billion yen (after tax) < Factors F t for f change h in i consolidated li
Slide 17: Non-consolidated Forecast for FY 2011 (compared to FY 2010 Results)
Non-consolidated Forecast for FY 2011 (compared to FY 2010 Results) 14 (Billion yen) [Principal factors affecting operating loss] FY 2011 FY 2010 Forecast Result Change Decrease in sales volume - 29.0 (Current) (with subtraction of fuel cost) (A) (B) (A) (B) (A)-(B) Operating Increase in unit sales
Slide 18: Policy on the Shareholder's Return
Policy on the Shareholder’s Return 15 Announced in May 10, 2011 The company will work to maintain current level of dividend ((60 yen y per p annum p per share). ) It is based to meet shareholders' expectations steadily, as well as to continue in estments for building investments b ilding and operati
Slide 19: Management after the Suspension of the Hamaoka Nuclear Power Station
Ⅱ Management after the Suspension of the Hamaoka Nuclear Power Station © 2011 Chubu Electric Power Co., Inc. All rights reserved.
Slide 20: Progress of the Tsunami Countermeasures at Hamaoka Nuclear Power Station
Progress of the Tsunami Countermeasures at Hamaoka Nuclear Power Station 16 - Progress of the Tsunami Countermeasures (announced on July 22, 2011) - We have 30 items of measures on our action plan for enhancing the safety of the Hamaoka Nuclear Power Station. Four of them, including the installation
Slide 21: Electric Power Supply and Demand Results for Summer 2011
Electric Power Supply and Demand Results for Summer 2011 17 - Electric Power Demand Result Owing O i tto - the effort of many customers to conserve energy and adjust operating schedules - poor weather in the high demand season from late July to early September (except for mid-August) ⇒ Peak load had
Slide 22: Electric Power Supply and Demand Measures for Winter 2011
Electric Power Supply and Demand Measures for Winter 2011 18 - Electric power Supply and Demand for this winter - It is estimated that our reserve margin in the coming winter will be around 7% 7%, which is below the designated range of adequate reserve margin (of 8 to 10 %). - We are asking our cust
Slide 23: Additional Fuel Procurement
Additional Fuel Procurement 19 - Additional Fuel and Oil Procurement LNG Oil Electric Power Supply plan (announced in March 2011) 8.42 million ton 0.73 million kl Annual amount to be received <1> Our demand for fuels in this fiscal approx 13 million ton approx. approx 1.7 1 7 million ton year <2> Sh
Slide 24: Progress in Efforts to Improve Managerial Efficiency
Progress in Efforts to Improve Managerial Efficiency 20 - Policy on improvement of managerial efficiency - After achieving stable procurement of electricity and public security, the construction periods, ranges and methods will be reviewed to reduce capital investments and maintenance costs. - Fuel
Slide 25: Outlook for Fund Raising for FY2011
Outlook for Fund Raising for FY2011 21 - Progress in fund raising, and increase of the limit of long-term loan in FY 2011 550.0 （Billion yen） Corresponding Other sources to Hamaoka suspension p (increase in JBIC fuel expense) 100.0 billion yen 250.0 300.0 550.0 3 main banks 250.0 billion yen 300.0 3
Slide 26: Requests to METI
Requests to METI 22 Responded or approved Items 1. Speed up procedures such as approving applications for medium- to long-term measures at Hamaoka Nuclear Power Station 2. Support for securing electric power supply and demand balance - Further extension of periodic licensee's inspection schedule tim
Slide 27: Reference Data
Ⅲ Reference Data Safety Measures at Hamaoka Nuclear Power Station ・・・・・・・・・・ 23 Industrial Large-lot Demand ・・・・・・・・・・ 42 M Measures tto a Request R t for f Suspension S i off Operation O ti att Hamaoka H k Nuclear N l Power P Station St ti <1> ・・・・・・・・・・ 24 S Supply l and d Demand D dMMeasures ffor
Slide 28: Safety Measures at Hamaoka Nuclear Power Station
Safety Measures at Hamaoka Nuclear Power Station 23 - Actions taken before the Great East Japan Earthquake - We set the target resistance of buildings (to about 1,000 gals on a bedrock), and implemented safety measures, including seismic retrofitting works for Units 3 to 5. - Actions taken after the
Slide 29: Measures to a Request for Suspension of Operation at Hamaoka <1>
Measures to a Request for Suspension of Operation at Hamaoka Nuclear Power Station <1> 24 - Investigation of urgent safety measures by the government and request for suspension of operation at Hamaoka Nuclear Power Station (May 6, 2011) - Urgent safety measures reported from Chubu Electric to NISA o
Slide 30: Measures to a Request for Suspension of Operation at Hamaoka <2>
Measures to a Request for Suspension of Operation at Hamaoka Nuclear Power Station <2> 44 25 - Risks related to the suspension - If all available measures possible at this point (restart of the thermal plant under scheduled long-term Peak load balance shutdown, and termination of power supply to Tok
Slide 31: Measures to a Request for Suspension of Operation at Hamaoka <3>
Measures to a Request for Suspension of Operation at Hamaoka Nuclear Power Station <3> 26 - Chubu Electric’s Actions -We accepted the Prime Minister's request very seriously since it is equivalent to a government directive or order in fact. -If If we continue the operation of Hamaoka Nuclear Power S
Slide 32: Outline of Countermeasures against Tsunami at Hamaoka Nuclear Power Station
Outline of Countermeasures against Tsunami at Hamaoka Nuclear Power Station 27 - Outline of countermeasures against tsunami at Hamaoka Nuclear Power Station (Announced in July 22, 2011) - To “prevent inundation,” taking inundation-prevention measures for (1) the power station premises, including the
Slide 33: Inundation Prevention <1>
Inundation Prevention <1> 28 - Outline of "Inundation Prevention(1)" ( ) (p (power station p premises)) - Preventing inundation caused by tsunami direct entry into power station premises - Taking measures to control seawater overflow from the water intake chambers etc., etc due to the water rise the
Slide 34: Inundation Prevention <2>
Inundation Prevention <2> 29 - Outline of "Inundation Inundation Prevention (2) (2)" (Inundation of housing) - If tsunami overtops the breakwater and the premises are inundated; - The seawater intake ppumps p outside of housingg mayy be submerged g and stopped, pp , and the nuclear facilityy cooling
Slide 35: Reinforcing Emergency Measures
Reinforcing Emergency Measures 30 - Outline of "Reinforcing Reinforcing Emergency Measures" (Maintaining seawater cooling function) - A safe and secure cold shutdown system should be prepared by "securing cooling function", even assumingg “loss of all AC ppower supplies” pp and “loss of seawater coo
Slide 36: Construction of Breakwater, etc.
Construction of Breakwater, etc. 31 - Breakwater Construction Plan - A breakwater wall of T.P. +18 meters in height and about 1.6 kilometers in total length will be constructed behind and to the flank of the sand dunes facing the ocean on the plant premises. Also, at the both ends of the wall, emban
Slide 37: Structure of Breakwater
Structure of Breakwater 32 - Height g of topp edge: g T.P. 18 m The height of the breakwater will be T.P. +18m, by consideration on sand dune in front of Hamaoka Nuclear Power Station (T.P. +10 - 15m) and upstream of tsunami at Fukushima Daiichi Nuclear Power Station (approx. T.P. +15m). - Base stru
Slide 38: Seawater inflow via damaged tubes in the main condenser for Hamaoka Reactor No.5
Seawater inflow via damaged tubes in the main condenser for Hamaoka Reactor No.5 33 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 which seawater flowed to cool steam, was damaged. It is assumed that 4
Slide 39: Comprehensive Assessment on the Safety Performance (Stress Test)
Comprehensive Assessment on the Safety Performance (Stress Test) 34 - Outline of the Comprehensive Assessment on the Safety Performance (Stress Test) Primary assessment Secondary assessment Those reactors which completed a periodic All reactors and power generation facilities (including those under
Slide 40: Development of LNG Thermal Power Plants with Enhanced Efficiency
Development of LNG Thermal Power Plants 15 35 with Enhanced Efficiency - Outline of development of LNG thermal power plants with enhanced efficiency (FY) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ▼Jul.-05: construction started Shin-Nagoya Shin Nagoya Group No No.8 8
Slide 41: Reinforcement Plan for LNG Handling Facilities
Reinforcement Plan for LNG Handling Facilities 36 16 - Supporting S ti stable t bl yett fl flexible ibl LNG procurementt ①Additional LNG tanks & reinforcement to LNG ② ②Installation of ggas receiving dock Shin-Nagoya pipeline across Ise Bay ④Installation of ( for Toho Gas Co.) Kawagoe Mie-Shiga pipe
Slide 42: Actions at Thermal Plants against Earthquakes <1>
１ Actions at Thermal Plants against Earthquakes <1> 37 - Actions for a scenario of triple interrelated earthquakes (Tokai, Tonankai and Nankai Earthquakes) Based on the assumed seismic waves and tsunami heights of the triple interrelated earthquakes published by the Central Disaster Prevention Counc
Slide 43: Actions at Thermal Plants against Earthquakes <2>
Actions at Thermal Plants against Earthquakes <2> 38 １ - Measures been taken at thermal plants Safety measures Improvement of aseismic resistance Measures to ensure safetyy will be Priority y will be placed p on measures to secure quick q recoveryy of power p supply pp y after an promoted at all the
Slide 44: Strengthen Mutual Support among Power Companies
Strengthen Mutual Support among Power Companies 39 １ - Higashi Shimizu FC: efforts to accelerate commencement of 300MW operations - Revised schedule for 300 MW operation after the Great East Japan Earthquake FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 and beyond Previous plan 100 MW 300MW Acceleration b
Slide 45: Promotion of Renewable Energy
Promotion of Renewable Energy 40 15 - Details for promotion of renewable energy Output CO2 reduction* Detailed plans (MW) Operation commences (t-CO2 / year) Mega Solar Iida 1 400 FY 2010 Mega Solar Taketoyo 7.5 3,400 FY 2011 Solarr Mega Solar Shimizu 8 4,000 FY 2014 (Plan) Total for solar power gene
Slide 46: Reduction of CO2 Emissions
Reduction of CO2 Emissions 41 -Initiatives Initiatives on reduction of CO2 emission -Promote the adoption of power generation - Principal measures for CO2 reduction using renewable energy and its effect -Improving p g thermal efficiency y of thermal p power Measures Effect on CO2 reduction* -Partici
Slide 47: Industrial Large-lot Demand
Industrial Large-lot Demand 4 42 (Year-on-year change) 1H 2011 2H Total 1H (%) FY 2010 Oct Nov Dec Jan Feb Mar FY 2010 FY 2010 Apr May Jun Jul Aug Sep FY 2011 Composition* Steel 39.4 25.1 14.3 15.7 17.6 10.8 3.6 14.1 25.5 -3.2 -0.9 4.6 2.1 10.5 10.4 4.0 12.1 uppliers Chemicals 4.2 7.3 6.8 -1.2 -0.2
Slide 48: Supply and Demand Measures for Summer 2011
Supply and Demand Measures for Summer 2011 43 - Supply-side Measures Extra E Items Agenda Announcement supply capacity Change in period for periodic inspection of Shin-Nagoya Thermal Power Station Unit 7-2 (243MW) Jun. 28 Change in period for periodic inspection of Kawagoe Thermal Power Station Unit
Slide 49: Fuel Procurement (FY 2010)
Fuel Procurement (FY 2010) 44 Nigeria 2.8 28 Russia 2.4 Russia 2.9 29 China 0.5 05 Malaysia 0.6 (%) Australia 11.0 LNG Coal Qatar Indonesia Australia （10.445 mil. t） 52.2 （11 198 mil. （11.198 mil t） 51 9 51.9 44 0 44.0 Indonesia 31.0 Malaysia 9.1 Niger Azerbaijan 11.4 22.6 Crude Uranium oil Indonesi
Slide 50: LNG Contracts
LNG Contracts 45 - Principal LNG Contracts (1,000 t/year) Contract volume Projects / <delivery> Period of contract (approximate figure) Q t / <Ex-ship> Qatar <E hi > 1997 - 2021 (appro 25 years) (approx.25 ears) 4 000 4,000 Australia (extension) / <Ex-ship> 2009 - 2016 (approx.7 years) 500 Existing
Slide 51: Advancement of Coal Trading
Advancement of Coal Trading 46 - Coal trading 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 Trading controls Chubu Eclec
Slide 52: Acquisition of Interests in Energy Resources
Acquisition of Interests in Energy Resources 47 Project j Outline of p project j and interest Participation p and its p purposes p - Major interest holders - Participation Shevron, Shell, Exxon Mobil, etc. Interest holding ratio 0.417% - Project site - Purposes/effects Gorgon - Fuel procurement abil
Slide 53: Overseas Business Deployment
Overseas Business Deployment 48 - Outline of overseas business Investment amount Output based on (approximate) Chubu's stake* At the end of Sep. Sep 2011 C Cumulative t t l 90 billion l ti total billi yen C m lati e total 3,220 Cumulative 3 220 MW * represents Chubu's stake in total output of whole
Slide 54: Sales Strategy
Sales Strategy 496 - Electricity sales - First priority should be given to efforts toward stable provision of electricity through public relations campaigns on energy saving, including education on effective use of electricity. - Features of electric apparatuses and heat pumps should be informed to
Slide 55: Electricity Business Environment <1>
Electricity Business Environment <1> 50 -Timetable Timetable for Establishment of Energy Policy Theme FY 2011 FY 2012 (relevant organizations) 10 11 12 1 2 3 4 5 6 7 8 9 Electric Electricity system Demand/supply power policy reform reform strategies of EPCOs Step-by-step construction of a reform sce
Slide 56: Electricity Business Environment <2>
Electricity Business Environment <2> 51 - Other External environments FY 2011 FY 2012 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 -Fukushima Daiichi STEP 2 medium-term action assignment nuclear power station ▲at the end of Dec. Cold Shutdown (target) accident control ▼Dec. 26 Interim report scheduled Final
Slide 57: The Act to Establish a Nuclear Damage Compensation Facilitation Corporation
The Act to Establish a Nuclear Damage Compensation Facilitation Corporation 52 - Overview of the Act to Establish a Nuclear Damage Compensation Facilitation Corporation - Given the possibility of large damage compensation requirements, nuclear power operators will establish the following system to p
Slide 58: Outline of the revision of the electricity rates system (FDC method)
Outline of the revision of the electricity rates system (FDC method) 53 - What is the FDC (“fully ( fully distributed cost cost”)) method? -The “fully distributed cost (FDC)” method defines “FDC” as an aggregate of “adequate costs and expenses needed by a power company to supply electricity under ef
Slide 59: Fuel cost adjustment system and thermal fuel cost
Fuel cost adjustment system and thermal fuel cost 54 <Diagram Di off impacts i t off thermal th l ffuell costt on th the F Fuell C Costt Adj Adjustment t tSSystem> t Price Monthly fluctuations in fuel prices are reflected in unit prices of electricity as prescribed by the Fuel Cost Adjustment System
Slide 60: Feed-in Tariff Scheme for Renewable Energy
Feed-in Tariff Scheme for Renewable Energy 55 - Feed Feed-in in Tariff Scheme for Renewable Energy - On August 26, 2011, the Act on Special Measures Concerning Procurement of Renewable Energy Sourced Electricity by Electricity Utilities was established. The Act is planned for implementation from Jul
Slide 61: Smart Meter
Smart Meter 56 15 -Progress Progress of argument regarding the introduction of smart meters “Tentative plan for the energy supply- “Basic Energy Plan” decided at the cabinet demand balance (draft)” (finalized by the meeting (June 18, 18 2010) E Energy andd Environment E i t Council) C il) - Aim to i
Slide 62: Smart Grid
Smart Grid 57 - Chubu's own initiatives < Next-generation home "smart home" (FY 2009 - FY 2011) > Testing of next-generation home that can use renewable energies to their fullest extent < Power generation characteristics of solar power generation (FY 2009 - FY 2011)> Evaluation l i off variousi sola
Slide 63: Reforms to Retirement Benefits
Reforms to Retirement Benefits 58 - Outline of reforms to retirement benefits (effective since April 2011) - A switchover of portion of defined benefit plans to defined contribution plans - A change in calculation method for retirement lump-sum grants and defined benefit plans from "proportion to fi
Slide 64: Free Cash Flow (Non-consolidated)
Free Cash Flow (Non-consolidated) 59 (billion yen) 500 Free cash flow 426.0 400 376.7 Subtraction of capital expenditure from depreciation 300 276 8 276.8 229.0 237.4 191.2 189.4 200 142 8 142.8 142 6 142.6 90.1 94.3 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (FY) (Est.） -100
Slide 65: Shareholders' Equity Ratio, Debt - Equity Ratio
Shareholders’ Equity Ratio, Debt - Equity Ratio 60 - Shareholders’ equity ratio - Debt - equity ratio （x） 35% 5 Non-consolidated Non-consolidated Consolidated Consolidated 30% 4 25% FY 2011(Forecast) 1.7 （Consolidated） 3 20% FY 2010 31.1%（Consolidated） 15% 2 FY 2011(Forecast) ( ) FY 2000 10% approx.
Slide 66: 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 — 1H FY2011 Earnings Presentation on 6ix