Chubu Electric Power Company,incorporated · TSE:9502
Chubu Electric Power Company,incorporated — Q1 FY2011 Earnings Presentation
49 slides from Chubu Electric Power Company,incorporated's earnings presentation, Aug 3, 2011
Slide 1: Investors Meeting 1st Quarter, FY 2011
I Investors t M Meeting ti 1st Quarter, Q t FY 2011 August 2011 August, 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. 1st Quarter (1Q) represents three months en
Slide 2: Table of Contents
Table of Contents I Measures to be taken by the Company after Suspension of Operation at Hamaoka Nuclear Power Station Safety Measures at Hamaoka Nuclear Power Station ・・・・・・・・・・ 1 Outline of Countermeasures against g Tsunami at Hamaoka Nuclear Power Station ・・・・・・・・・・ 2 Inundation Prevention (1) ・・
Slide 3: Measures to be taken after Suspension of Operation at Hamaoka
I M Measures tto b be ttaken k b by th the C Company after ft Suspension of Operation at Hamaoka Nuclear Power Station © 2011 Chubu Electric Power Co., Inc. All rights reserved.
Slide 4: Safety Measures at Hamaoka Nuclear Power Station
Safety Measures at Hamaoka Nuclear Power Station 1 - Actions A ti taken t k after ft the th Great G t East E t Japan J Earthquake E th k March 11, The Great East Japan Earthquake occurred. March 30, The Minister of Economy, Trade and Industry instructed that emergency safety measures be carried out.
Slide 5: Outline of Countermeasures against Tsunami at Hamaoka
Outline of Countermeasures against Tsunami at Hamaoka Nuclear Power Station 2 - 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 6: Inundation Prevention (1)
Inundation Prevention (1) 3 - 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 ther
Slide 7: Inundation Prevention (2)
Inundation Prevention (2) 4 - 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 8: Reinforcing Emergency Measures
Reinforcing Emergency Measures 5 - 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 cool
Slide 9: Timeframe and Cost for the Measures
Timeframe and Cost for the Measures 6 - Target for completion of the measures against tsunami which have been announced in July 22nd, 2011 is set for December, 2012. FY 2011 FY 2012 Principal measures against Tsunami J A S O N D J F M A M J J A S O N D J F M Construction of Inundation breakwater Pre
Slide 10: Supply- and Demand-side Measures for Summer 2011 (August)
Supply- and Demand-side Measures for Summer 2011 (August) 7 - Supply Supply- and demand-side demand side measures for August Measure Stop the supplementation to the 50 Hz (East Japan) region(750 MW) 1 + 1,160 MW + Postponing the long-term planned shutdown at Taketoyo Unit No.3 (375MW), etc. Measure
Slide 11: Additional Fuel Procurement
Additional Fuel Procurement 8 - Additional Fuel Procurement in FY 2011 LNG Oil Additional procurement approx. 3.2 million ton approx. 1.3 million kl amount Flexibility of existing contracts in upward Procurement spot procurement adjustment methods,, etc. (about 70 % procured from Qatar) (procurement
Slide 12: Requests to METI (Submitted on July 4th, 2011)
Requests to METI (Submitted on July 4th, 2011) 9 1. Speed up procedures such as approving applications for medium medium- to long-term long term measures at Hamaoka Nuclear Power Station 2. Support for securing electric power supply and demand balance * - Further extension of periodic licensee's ins
Slide 13: Efforts to Improve Managerial Efficiency
Efforts to Improve Managerial Efficiency 10 - Efforts to improve managerial efficiency - The “Managerial Efficiency Promotion Council” was established in May 2011 to discuss management g efficiency y and cost reduction measures for improving p g incomes and expenditures. p - Thorough reduction of in
Slide 14: Outlook for Fund Raising for FY2011
Outlook for Fund Raising for FY2011 11 - Progress in fund raising raising, and increase of the limit of long-term long term loan in FY 2011 550.0 （Billion yen） Corresponding to Hamaoka suspension Other sources (increase in fuel expense) 250.0 300.0 550 0 550.0 3 main banks 250.0 billion yen 300.0 30
Slide 15: Outline of Financial Results for Three Months Ended June 30, 2011
Ⅱ Outline of Financial Results for Three Months Ended June 30, 2011 © 2011 Chubu Electric Power Co., Inc. All rights reserved.
Slide 16: Summary of Three-Months Financial Results
Summary of Three-Months Financial Results (April 1, 2011 to June 30, 2011) 12 [Consolidated] Revenue increased and income decreased j Factors 【Major 【M F t for f change h in i (The First time in three years after 1Q FY2008) consolidated ordinary income】 （Billion yen) (Billion yen,%) 1Q FY2011 1Q FY
Slide 17: Highlights of Forecast for FY 2011
Highlights of Forecast for FY 2011 13 [Consolidated] (Billion yen) FY2011 Forecast FY2011 Forecast FY2010 Change Change Current Previous (in Apr.) Result (from previous forecast) (from FY 2010 Result) (A) (B) (C) (A)-(B) (A)-(C) Operating revenue 2,440.0 2,530.0 2,330.8 approx. - 90.0 approx. 109.0
Slide 18: Non-consolidated Forecast of Income for FY 2011 (1)
Non-consolidated Forecast of Income for FY 2011 (1) 14 (Billion yen) [Principal factors affecting operating income] FY 2011 Forecast FY 2011 Forecast Change (Billion yen) Current Previous (in Apr.) (A) (B) (A)-(B) Effects on revenues and expenses from suspension of all plants in Hamaoka - 300.0 Oper
Slide 19: Non-consolidated Forecast of Income for FY 2011 (2)
Non-consolidated Forecast of Income for FY 2011 (2) 15 (Billion yen) [Principal factors affecting operating income] FY 2011 Forecast FY 2010 (Billion yen) Change Current Result Decrease in electricity sales (A) (B) (A)-(B) - 32.0 32 0 (with subtraction of fuel cost) Operating revenue 2,280.0 2,178.2
Slide 20: Policy on the Shareholders' Return
Policy on the Shareholders’ Return 16 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 21: Reference Data
Ⅲ Reference Data Disaster Control Measures Taken at Hamaoka Nuclear Power Station ・・・・・・・・・・ 17 Fuel Procurement (FY 2010) ・・・・・・・・・・ 31 Layout of Breakwater, etc. ・・・・・・・・・・ 18 LNG Contracts ・・・・・・・・・・ 32 Structure of Breakwater ・・・・・・・・・・ 19 Advancement of Coal Trading ・・・・・・・・・・ 33 S Seawater t i
Slide 22: Disaster Control Measures Taken at Hamaoka Nuclear Power Station
Disaster Control Measures Taken at Hamaoka Nuclear Power Station 17 - Actions previously taken Exhaust piping improvement works Piping support Aseismic resistance improvement works (iron support tower installed) improvement works Extra Before After support - Aseismic resistance of approx. 1,000 gals
Slide 23: Layout of Breakwater, etc.
Layout of Breakwater, etc. 18 - The Breakwater will be constructed along g with Reactor No. 1 to No. 5,, about 1.6 km in total length. g On both ends,, the embankments will be raised by T.P. + 18 - 20 m and connected to ground T. P. + 20 m or higher. → Prevention of tsunami inflow from the front and
Slide 24: Structure of Breakwater
Structure of Breakwater 19 - Height of top edge: T.P. T P 18 m The height of the breakwater will be T.P. +18m (previously announced as "T.P. +12m or more"), by consideration on sand dune in front of Hamaoka Nuclear Power Station (T.P. +10 - 15m) and upstream of tsunami at Fukushima Daiichi Nuclear P
Slide 25: Seawater inflow via damaged tubes in Hamaoka Reactor No.5
Seawater inflow via damaged tubes in the main condenser for Hamaoka Reactor No.5 20 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 26: Situation of Nuclear Power Generation Business
Situation of Nuclear Power Generation Business 21 - External environments relating to nuclear power generation business FY 2011 FY 2012 J A S O N D J F M A M J J A S O N D J F M - Accident control Cold shutdown by January, January 2012 (target) Fukushima Daiichi Nuclear Power Station Final report du
Slide 27: Development of LNG Thermal Power Plants with Enhanced Efficiency
Development of LNG Thermal Power Plants 15 22 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 28: Reinforcement Plan for LNG Handling Facilities
Reinforcement Plan for LNG Handling Facilities 23 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 29: Actions at Thermal Plants against Earthquakes <1>
Actions at Thermal Plants against Earthquakes <1> 24 １ - 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 30: Actions at Thermal Plants against Earthquakes <2>
Actions at Thermal Plants against Earthquakes <2> 25 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 31: Strengthen Mutual Support among Power Companies
Strengthen Mutual Support among Power Companies 26 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 32: Promotion of Renewable Energy
Promotion of Renewable Energy 27 15 - Details D t il for f promotion ti off renewable bl 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 (Plan) Solar Mega Solar Shimizu 8 4,000 FY 2014 (Plan) Tota
Slide 33: Reduction of CO2 Emissions
Reduction of CO2 Emissions 28 -Corporate C t ttargett on CO2 Reduction R d ti off CO2 emission i i by b 20% in i terms t off intensity i t it on 5-year 5 average basis b i reduction from FY2008 to FY2012 – the first commitment period of the Kyoto Protocol (setting in 1996) (compared with the level o
Slide 34: Industrial Large-lot Demand
Industrial Large-lot Demand 4 29 (Year-on-year change) 1H 2011 2H Total (%) FY 2010 Oct Nov Dec Jan Feb Mar FY 2010 FY 2010 Apr May Jun 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 12.1 Materiall Suppliers Chemicals 4.2 7.3 6.8 -1.2 -0.2 0.7 2.5 2.7 3.4 2.2 12.1 12.7
Slide 35: Supply- and Demand-side Measures for Summer 2011
Supply- and Demand-side Measures for Summer 2011 30 - 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 Statio
Slide 36: Fuel Procurement (FY 2010)
Fuel Procurement (FY 2010) 31 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 37: LNG Contracts
LNG Contracts 32 - Principal LNG Contracts 000t/ （1,000t/year） （1 ） Suppliers /<delivery> Period of contracts Volume Qatar/<Ex-ship> 1997 - 2021 (approx.25 years) 4,000 Australia (extension)/<Ex-ship> 2009 - 2016 (approx.7 years) approx.500 A Australia li (e ( xpansion)/<Ex-ship> 2009 - 2029 ( (appr
Slide 38: Advancement of Coal Trading
Advancement of Coal Trading 33 - 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 39: Acquisition of Interests in Energy Resources
Acquisition of Interests in Energy Resources 34 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 40: Overseas Business Deployment
Overseas Business Deployment 35 - Outline of overseas business Investment amount Output based on Chubu's (approximate) stake* At end of FY 2010 Cumulative total 70 billion yen Cumulative total 2,550 2 550 MW * represents Chubu's stake in total output of whole projects it participates - Projects in p
Slide 41: Sales Strategy
Sales Strategy 366 - 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 42: The Act to Establish a Nuclear Damage Compensation Facilitation Corporation
The Act to Establish a Nuclear Damage Compensation Facilitation Corporation 37 - Overview of the bill for the Act to Establish a Nuclear Damage g Compensation p Facilitation Corporation p - Given the possibility of large damage compensation requirements, nuclear power operators will establish the fo
Slide 43: Feed in Tariffs for Renewable Energy
Feed in Tariffs for Renewable Energy 38 - Scheme of feed in tariffs for renewable energy (not only surplus, but all of them) Eligible products to purchase El t i it consumers Electricity Bill on Act of Special Measures Payment of Collection of surcharge* concerning Renewable Energy feed in tariffs *
Slide 44: Smart Grid/Smart Meter <1>
Smart Grid/Smart Meter <1> 39 15 - Movement in Government Policy - “Basic Energy Plan” decided at the cabinet meeting (June 18, 2010) - Aim to establish one of the most advanced next-generation next generation transmission/distribution networks in the world that enables bilateral communication betwe
Slide 45: Smart Grid/Smart Meter <2>
Smart Grid/Smart Meter <2> 40 - 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 o
Slide 46: Reforms to Retirement Benefits
Reforms to Retirement Benefits 41 - 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 47: Free Cash Flow (Non-consolidated)
Free Cash Flow (Non-consolidated) 42 (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 48: Shareholders' Equity Ratio, Debt - Equity Ratio
Shareholders’ Equity Ratio, Debt - Equity Ratio 43 - 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 49: 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,
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