Chubu Electric Power Company,incorporated · TSE:9502

Chubu Electric Power Company,incorporated — Q2 FY2019 Earnings Presentation

35 slides from Chubu Electric Power Company,incorporated's earnings presentation, Oct 31, 2019

  1. Slide 1: Investors Meeting 2nd Quarter FY2019

    Investors Meeting 2nd Quarter FY2019 October, 2019

  2. Slide 2: Index

    INDEX 01 Outline of Financial Results for Six-Months ended September 30, 2019 02 Reference Data Summary of Financial Results ･･･････････････01 Segment Information ････････････10 Electrical Energy Sold ･･･････････････04 Consolidated Statements of Income ････････････11 Electric Power Supplied ････････

  3. Slide 3: Outline of Financial Results for Six-Months ended September 30, 2019

    01 Outline of Financial Results for Six-Months ended September 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. 2nd Quarter (2Q) represents six months period ended

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

    01 Summary of Financial Results <1> <Points of Financial Results> (Consolidated)  Operating revenues: 1,572.3 billion yen Operating revenues increased by 84.8 billion yen compared with 2018/2Q, mainly due to an increase in fuel cost adjustment charge (+61.6 billion yen).  Ordinary income: 143.5 bi

  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 84.8 billion yen) （Billion yen） 16,000 1,600.0 Others An increase in fuel cost adjustment charge 23.2 61.6 1,500.0 15,000 An increase in surcharge and grant under

  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 49.3 billion yen) JERA (*1) Time lag (Excluding Time lag) Others （Billion yen） -15.3 -5.2 150.0 1,500 (45.7→30.3) 70.0 120.0 1,200 (-38.0→32.0) Effect of accounting meth

  7. Slide 7: Electrical Energy Sold

    04 Electrical Energy Sold <Electrical Energy Sold> (Nonconsolidated)  Decreased by 0.3TWh to 59.1TWh compared with 2018/2Q, mainly due to an effect of switches made to other operators with the intensified competition and a decrease in air conditioning demand by lower temperature in this summer comp

  8. Slide 8: Electric Power Supplied

    05 Electric Power Supplied <Electric Power Supplied>（Nonconsolidated）  Hydro: The flow rate was lower than 2018/2Q; thus hydroelectric power output decreased by 0.8TWh.  Thermal: Thermal power plants have been transferred to JERA in April 2019.  Purchased power: Increased by 52.5TWh, mainly due t

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

    06 (Reference) Impact of Accrued Income (Result) ＜ FY2018/2Q ＞ ＜ FY2019/2Q ＞ Loss Elements of cost Income -38.0 billion (fuel procurement) 32.0 billion yen yen Elements of income (time lag from fuel procurement) 2018/4 2018/10 2019/4 2019/10 2020/4 Copyright © CHUBU Electric Power Co.,Inc. All Right

  10. Slide 10: Dividends

    07 Dividends <Policy of Return to Shareholders>  Chubu Electric Power will continue to invest in plants and equipment for a safe and stable supply of electricity as well as in growth sectors to maintain sustainable growth and increase our corporate value.  Providing strong shareholder returns is a

  11. Slide 11: Summary of Forecast for FY2019 <1>

    08 Summary of Forecast for FY2019 <1> <Forecast> Forecasts of financial results have not been revised from the previous announcement made in July 31, 2019.  Consolidated operating revenues: 3,050.0 billion yen (forecast)  Consolidated ordinary income: 185.0 billion yen (forecast) Consolidated ordi

  12. Slide 12: Summary of Forecast for FY2019 <2>

    09 Summary of Forecast for FY2019 <2> [Principal Figures] (TWh,%) Current July 31 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 subsidi

  13. Slide 13: Reference Data

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

  14. Slide 14: Segment Information

    10 Segment Information [Operating revenues] (Billion yen) 2019/2Q 2018/2Q Change (A) (B) (A-B) Customer Service & 1,384.7 1,365.7 18.9 Sales Power Network 371.1 369.7 1.4 JERA（*1） - 503.7 (503.7) Others (*2) 363.9 359.6 4.2 [Ordinary income and loss] (Billion yen) Decrease mainly due to the increasi

  15. Slide 15: Consolidated Statements of Income

    11 Consolidated Statements of Income (Billion yen,%) 2019/2Q 2018/2Q Change (A) (B) (A-B) (A-B)/B Operating revenues 1,572.3 1,487.4 84.8 5.7 Share of profit of entities accounted for using equity 64.8 7.2 57.5 797.8 method Other 6.2 6.7 (0.4) (6.5) Non-operating revenues 71.1 13.9 57.1 410.1 Ordina

  16. Slide 16: Nonconsolidated Statements of Income <1>: Operating revenues

    12 Nonconsolidated Statements of Income <1>: Operating revenues (Billion yen,%) 2019/2Q 2018/2Q Change <Major factors for change> (A) (B) (A-B) (A-B)/B Electricity sales revenues 1,104.2 1,074.8 29.4 2.7 An increase in fuel cost adjustment charge +61.6 Sold power to other electric A decrease in elec

  17. Slide 17: Nonconsolidated Statements of Income <2>: Operating expenses

    13 Nonconsolidated Statements of Income <2>: Operating expenses (Billion yen,%) 2019/2Q 2018/2Q Change <Major factors for change> (A) (B) (A-B) (A-B)/B 87.4 (7.3) (7.8) Integration of the existing thermal Salaries and employee benefits 94.7 power generation businesses into Fuel - 366.9 (366.9) - JER

  18. Slide 18: Nonconsolidated Statements of Income <3>: Net income

    14 Nonconsolidated Statements of Income <3>: Net income (Billion yen,%) 2019/2Q 2018/2Q Change (A) (B) (A-B) (A-B)/B Operating income 77.4 85.8 (8.4) (9.8) Non-operating revenues 8.4 9.6 (1.2) (12.5) Non-operating expenses 11.4 12.9 (1.5) (11.6) Ordinary revenues 1,414.5 1,364.3 50.2 3.7 Ordinary ex

  19. Slide 19: Consolidated and Nonconsolidated Financial Standing

    15 Consolidated and Nonconsolidated Financial Standing (Billion yen) Sep. 30, 2019 Mar. 31, 2019 Change <Major factors for change> (A) (B) (A-B) Consolidated 5,383.3 5,987.5 (604.1) Succeeded to JERA Assets -1,188.9 Nonconsolidated 4,713.4 5,402.8 (689.4) (including cash and deposits <-335.0>) Conso

  20. Slide 20: Consolidated Statements of Cash Flows

    16 Consolidated Statements of Cash Flows (Billion yen) <Major factors> 2019/2Q 2018/2Q Change (A) (B) (A-B) Cash flows from operating activities (a) 59.1 101.1 (41.9) Payment of adjustment Cash flows from investing activities (b) (435.9) (211.1) (224.8) money due to integration of the existing therm

  21. Slide 21: Financial Result of JERA

    17 Financial Result of JERA [Consolidated] (Billion yen, ％) 2019/2Q 2018/2Q Change (A) (B) (A-B) (A-B)/B Operating revenues 1,624.1 1,299.5 324.6 25.0 Operating income 140.6 3.9 136.7 3,482.0 Ordinary income 151.1 20.4 130.6 639.3 Net income attributable to 137.8 15.2 122.5 801.8 owners of parent Co

  22. Slide 22: Impact of the Feed-in-Tariff Scheme for Renewable Energy

    18 Impact of the Feed-in-Tariff Scheme for Renewable Energy <Result of 2019/2Q (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

  23. Slide 23: Ordinary Income (Loss) and Net Income (Loss)

    19 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

  24. Slide 24: Cash Flow (Consolidated)

    20 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) (

  25. Slide 25: Fund Raising and Outstanding Interest-bearing Debt

    21 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

  26. Slide 26: Financial Ratio, Credit Ratings

    22 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

  27. Slide 27: ROA and ROE

    23 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

  28. Slide 28: Sales Figures

    24 Sales Figures 2019/2Q Target The number of entry ; Approx.1.98 million - New electric tariff menu Chubu region The number of sales ; Acquire 100 thousand Approx. 29 thousand Services in a set with electric power or gas customers by FY2020 Increase to approx. 30.0 TWh/year Electrical energy sold o

  29. Slide 29: Monthly Breakdown of Electrical Energy Sold

    25 Monthly Breakdown of Electrical Energy Sold (TWh) FY2019 Apr.- Apr. May June July Aug. Sep. Sep. Low voltage 3.0 2.8 2.1 2.3 3.4 3.0 16.5 High voltage・ Extra-high 6.5 6.5 7.0 7.5 7.5 7.6 42.6 voltage Total 9.5 9.3 9.1 9.8 10.8 10.6 59.1 * The total may not match due to rounding. (TWh) FY2018 Apr.

  30. Slide 30: Composition of Electric Power Output

    26 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

  31. Slide 31: Reduction of CO2 emissions

    27 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 0.458 operation Joetsu Thermal 0.45 Power Station started operation Nishi-Nago

  32. Slide 32: Overview of Renewable Energy Business

    28 Overview of Renewable Energy Business Development locations of hydroelectric power station (As of the end of September, 2019) Conventional hydro (Reference) Chubu Electric Generation with minimum water level Chubu Electric Group Parentheses denote the commercial operation start year. Akigami : 0.

  33. Slide 33: Overview of Overseas Business

    29 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

  34. Slide 34: 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

  35. Slide 35: Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.

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

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