Chubu Electric Power Company,incorporated · TSE:9502

Chubu Electric Power Company,incorporated — Q1 FY2019 Earnings Presentation

33 slides from Chubu Electric Power Company,incorporated's earnings presentation, Jul 31, 2019

  1. Slide 1: Presentation Materials for Investors 1st Quarter FY2019

    Presentation Materials for Investors 1st Quarter FY2019 July, 2019

  2. Slide 2: Index

    INDEX 01 Outline of Financial Results for Three-Months ended June 30, 2019 02 Reference Data Summary of Financial Results ･･･････････････01 Consolidated Statements of Income ････････････09 Electrical Energy Sold ･･･････････････04 Nonconsolidated Statements of Income ････････････10 Electric Power Sup

  3. Slide 3: Outline of Financial Results for Three-Months ended June 30, 2019

    01 Outline of Financial Results for Three-Months ended June 30, 2019 Note: The company’s fiscal year (FY) is from April 1 to March 31 of the following year. FY2019 represents the fiscal year begun on April 1, 2019, and ending on March 31, 2020. 1st Quarter (1Q) represents three months period ended J

  4. Slide 4: Summary of Financial Results <1>

    01 Summary of Financial Results <1> <Points of Financial Results> (Consolidated)  Operating revenues: 754.4 billion yen Operating revenues increased by 69.9 billion yen compared with 2018/1Q, mainly due to an increase in surcharge and grant based on Act on Special Measures Concerning Procurement of

  5. Slide 5: Summary of Financial Results <2>

    02 Summary of Financial Results <2> [Factors contributing to change in consolidated operating revenues] (Operating revenues increased by 69.9 billion yen) （Billion yen） 800.0 8,000 An increase in surcharge and grant under act on purchase others of renewable energy An increase in fuel cost sourced el

  6. Slide 6: Summary of Financial Results <3>

    03 Summary of Financial Results <3> [Factors contributing to change in consolidated ordinary income] (Ordinary income increased by 41.0 billion yen) （Billion yen） 900 90.0 JERA (*1) Others (Excluding Time lag) 3.4 Time lag 1.6 (24.2→25.9) 36.0 600 60.0 ･Gain on the sale of the overseas (-14.0→22.0)

  7. Slide 7: Electrical Energy Sold

    04 Electrical Energy Sold <Electrical Energy Sold> (Nonconsolidated)  Increased by 0.6TWh to 27.9TWh compared with 2018/1Q, mainly due to sales increase outside Chubu region, in spite of effect of switches made to other operators with the intensified competition. (TWh,%) 2019/1Q 2018/1Q Change (A)

  8. Slide 8: Electric Power Supplied

    05 Electric Power Supplied <Electric Power Supplied>（Nonconsolidated）  Hydro: The flow rate was lower than 2018/1Q; thus hydroelectric power output decreased by 0.9 TWh.  Thermal: Thermal power plants have been succeeded to JERA in April 2019.  Purchased power: Increased by 24.3 TWh, mainly due t

  9. Slide 9: (Reference) Impact of Accrued Income (Result)

    06 (Reference) Impact of Accrued Income (Result) ＜ FY2018/1Q ＞ ＜ FY2019/1Q ＞ Loss Income -14.0 billion Elements of cost 22.0 billion yen (fuel procurement) yen Elements of income (time lag from fuel procurement) 2018/4 2018/7 2019/4 2019/7 2020/4 Copyright © CHUBU Electric Power Co.,Inc. All Right R

  10. Slide 10: Summary of Forecast for FY2019 <1>

    07 Summary of Forecast for FY2019 <1> <Forecast> Forecasts of financial results have not been revised from the previous announcement made in April 26, 2019.  Consolidated operating revenues: 3,050.0 billion yen (forecast)  Consolidated ordinary income: 185.0 billion yen (forecast) Consolidated ord

  11. Slide 11: Summary of Forecast for FY2019 <2>

    08 Summary of Forecast for FY2019 <2> [Principal Figures] (TWh,%) Current April 26 Change ＜Electrical energy sold＞ (A) (B) (A-B) (A-B)/B Electrical energy sold 118.7 118.7 ｰ ｰ [Reference] Electrical energy sold including group 124.2 124.2 ｰ ｰ companies * * The sum of the company, consolidated subsid

  12. Slide 12: Reference Data

    02 Reference Data Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

  13. Slide 13: Consolidated Statements of Income

    09 Consolidated Statements of Income (Billion yen,%) 2019/1Q 2018/1Q Change (A) (B) (A-B) (A-B)/B Operating revenues 754.4 684.4 69.9 10.2 Share of profit of entities accounted for using equity 48.9 5.9 43.0 729.3 method Other 4.1 3.9 0.1 4.0 Non-operating revenues 53.0 9.8 43.2 436.9 Ordinary reven

  14. Slide 14: Nonconsolidated Statements of Income <1>: Operating revenues

    10 Nonconsolidated Statements of Income <1>: Operating revenues (Billion yen,%) 2019/1Q 2018/1Q Change <Major factors for change> (A) (B) (A-B) (A-B)/B Electricity sales revenues 528.3 486.5 41.7 8.6 An increase in fuel cost adjustment charge +42.3 Sold power to other electric 16.4 21.9 (5.4) (24.8)

  15. Slide 15: Nonconsolidated Statements of Income <2>: Operating expenses

    11 Nonconsolidated Statements of Income <2>: Operating expenses (Billion yen,%) 2019/1Q 2018/1Q Change <Major factors for change> (A) (B) (A-B) (A-B)/B 41.9 (3.6) (8.0) Integration of the existing thermal Salaries and employee benefits 45.5 power generation businesses into Fuel ‐ 156.3 (156.3) ‐ JER

  16. Slide 16: Nonconsolidated Statements of Income <3>: Net income

    12 Nonconsolidated Statements of Income <3>: Net income (Billion yen,%) 2019/1Q 2018/1Q Change (A) (B) (A-B) (A-B)/B Operating income 29.9 33.6 (3.6) (10.8) Non-operating revenues 6.5 8.1 (1.6) (19.8) Non-operating expenses 5.6 6.4 (0.7) (12.3) Ordinary revenues 685.7 632.5 53.1 8.4 Ordinary expense

  17. Slide 17: Consolidated and Nonconsolidated Financial Standing

    13 Consolidated and Nonconsolidated Financial Standing (Billion yen) Jun. 30, 2019 Mar. 31, 2019 Change <Major factors for change> (A) (B) (A-B) Consolidated 5,401.2 5,987.5 (586.2) Succeeded to JERA Assets -1,188.9 Nonconsolidated 4,735.2 5,402.8 (667.6) Acquisition of JERA’s stock by succeeding ＋5

  18. Slide 18: Segment Information

    14 Segment Information (Billion yen) [Operating revenues] 2019/1Q 2018/1Q Change (A) (B) (A-B) Customer Service & Sales 670.7 628.7 41.9 Power Network 178.9 169.3 9.6 JERA（*1） - 224.5 (224.5) Others (*2) 171.0 170.7 0.3 (Billion yen) [Ordinary income and loss] 2019/1Q 2018/1Q Change (A) (B) (A-B) Cu

  19. Slide 19: Financial Result of JERA

    15 Financial Result of JERA [Consolidated] (Billion yen, ％) 2019/1Q 2018/1Q Change (A) (B) (A-B) (A-B)/B Operating revenues 795.3 535.4 259.9 48.5 Operating income 96.1 1.5 94.5 5,933.7 Ordinary income 106.6 15.0 91.6 610.4 Net income attributable to 102.5 12.0 90.5 753.8 owners of parent Copyright

  20. Slide 20: Impact of the Feed-in-Tariff Scheme for Renewable Energy

    16 Impact of the Feed-in-Tariff Scheme for Renewable Energy <Result of 2019/1Q (change from the previous year in parenthesis)> Renewable energy Electricity generator Electric utility customers Purchased cost (Purchased power Surcharge under act on purchase of from other suppliers) renewable energy s

  21. Slide 21: Ordinary Income (Loss) and Net Income (Loss)

    17 Ordinary Income (Loss) and Net Income (Loss) [Consolidated Ordinary Income (Loss)] [Consolidated Net Income (Loss)] (billion yen) (billion yen) 300.0 300.0 255.6 250.0 250.0 200.0 185.0 200.0 169.7 165.0 146.2 150.0 150.0 128.5 121.4 112.9 114.6 100.0 100.0 84.5 60.2 74.3 79.4 50.0 50.0 38.7 0.0

  22. Slide 22: Cash Flow (Consolidated)

    18 Cash Flow (Consolidated) （billion yen） 800.0 Cash Flows from Operating Activities Cash Flows from Investing Activities FCF 562.4 600.0 449.7 476.8 424.1 400.0 335.0 296.4 approx. 227.6 254.4 220.0 203.7 194.0 176.8 200.0 113.6 79.6 0.0 (25.1) (70.2) (62.8) (71.9) (102.9) (200.0) (247.0) (266.6) (

  23. Slide 23: Fund Raising and Outstanding Interest-bearing Debt

    19 Fund Raising and Outstanding Interest-bearing Debt [Fund raising (Nonconsolidated) ] [Outstanding Interest-bearing debt (Consolidated) ] (billion yen) (billion yen) 900.0 3400.0 820.0 3,260.5 3,260.0 800.0 3200.0 700.0 3000.0 2,965.8 2,981.1 Funding 2,918.9 interest –bearing to JERA 600.0 Plan Im

  24. Slide 24: Financial Ratio, Credit Ratings

    20 Financial Ratio, Credit Ratings (%) [Shareholders’ equity ratio (Consolidated)] [Debt-Equity ratio (Consolidated)] (Times) 40.0 2.5 approx. 2.3 35.0 2.2 35.0 2.1 2.0 31.1 31.1 31.3 1.8 1.7 29.7 1.6 1.6 30.0 approx. 28.9 1.5 1.5 1.5 1.5 26.8 26.1 24.7 24.2 25.0 1.0 20.0 0.5 2010 2011 2012 2013 201

  25. Slide 25: ROA and ROE

    21 ROA and ROE [ROA (Consolidated)] [ROE (Consolidated)] （%） （%） 6.0 16.0 5.3 14.0 5.0 approx. 12.0 11.1 4.0 4.0 10.0 approx. 3.4 9.0 3.0 2.7 2.8 8.0 7.0 2.4 6.0 1.9 5.1 2.0 4.4 4.5 4.0 2.7 1.0 2.0 0.0 0.0 △0.0 (2.0) (1.0) (0.6) (2.2) (0.9) (4.0) (2.0) (4.6) (6.0) (5.8) (3.0) (8.0) 2010 2011 2012 20

  26. Slide 26: Sales Figures

    22 Sales Figures 2019/1Q Target The number of entry ; Chubu region Approx.1.92 million - New electric tariff menu Increase to approx. 30.0 billion Electrical energy sold outside of Chubu region 2.6 billion kWh kWh/year (second half of 2020) in Outside of the Tokyo metropolitan area Chubu region The

  27. Slide 27: Monthly Breakdown of Electrical Energy Sold

    23 Monthly Breakdown of Electrical Energy Sold (TWh) FY2019 Apr.- Apr. May June June Low voltage 3.0 2.8 2.1 7.8 High voltage・ Extra-high 6.5 6.5 7.0 20.0 voltage Total 9.5 9.3 9.1 27.9 * The total may not match due to rounding. (TWh) FY2018 Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

  28. Slide 28: Composition of Electric Power Output

    24 Composition of Electric Power Output (Reference) [Composition of power sources] [Composition of Electric Power Output] Long-term Energy Supply-demand Outlook 100% 100% Nuclear Nuclear 13% JEPX, Other*4 Nuclear 11% 15% 20～ Renewable Energy 6% FIT 22% 80% Hydro 80% 9% 3% Renewable Energy*3 19% 5% H

  29. Slide 29: Reduction of CO2 emissions

    25 Reduction of CO2 emissions [Trends and outlook of CO2 emission intensity (before reflecting CO2 credits)] (kg-CO2/kWh) 0.50 The reduction by expanding Hamaoka Nuclear Power the use of renewable energy Station suspended 0.459 operation Joetsu Thermal 0.45 Power Station started operation Nishi-Nago

  30. Slide 30: Overview of Renewable Energy Business

    26 Overview of Renewable Energy Business Development locations of hydroelectric power station (As of the end of June, 2019) Conventional hydro (Reference) Chubu Electric Generation with minimum water level Chubu Electric Group Parentheses denote the commercial operation start year. Akigami : 0.29MW(

  31. Slide 31: Overview of Overseas Business

    27 Overview of Overseas Business [Submarine power transmission business in Germany] Overview of the business Operating and maintaining following four submarine transmission cables which run Project overview from a wind power plant located in an offshore area of the North Sea BorWin1 BorWin2 DolWin2

  32. Slide 32: Disclaimer

    DISCLAIMER This presentation contains assumptions and forward-looking statements with respect to the financial conditions, and forecasts of the company, which are based on information currently available. These assumptions involve certain risks and uncertainties, and may cause actual results materia

  33. Slide 33: Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

    Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

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