Tokyo Gas Co., Ltd. · TSE:9531

Tokyo Gas — FY2020 2Q Earnings Presentation

26 slides from Tokyo Gas's earnings presentation, Oct 29, 2020

  1. Slide 1: FY2020 2Q Financial Results

    TSE:9531 FY2020 2Q Financial Results ended September, 2020 October 29, 2020 [Revised on November 5,2020]

  2. Slide 2: FY2020 Consolidated Financial Results

    01 FY2020 Consolidated Financial Results ended September, 2020 Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  3. Slide 3: Highlights: Sales Down, Profit Up

    FY2020 2Q Consolidated Results (Apr. 1, 2020 – Sep. 30, 2020) vs. FY2019 2Q 3 Highlights: Sales Down, Profit Up (+/- indicate impact on profit, billion yen) Decrease in city gas sales volume from the impact of COVID-19, decrease in city gas unit price due to Net sales -82.4 gas rate adjustments. Ope

  4. Slide 4: City Gas sales volume and number of customers

    FY2020 2Q Consolidated Gas Sales Volume/ Number of Customers vs. FY2019 2Q 4 City Gas sales volume: Number of customers(City Gas), LNG sales volume,Average temperature （ Unit： mil. ㎥） FY2020 FY2019 Change -1,138mil.㎥ (-17.0%) 8,000 Number of customers for 2Q 2Q including temperature effect -43.0 +10

  5. Slide 5: Electricity sales volume and new customers

    FY2020 2Q Consolidated Electricity Sales Volume/ Number of Customers vs. FY2019 2Q 5 Electricity sales volume： New electricity retail customers won by Tokyo Gas （ Unit：mil. kWh ） Quarter (1,000s) Cumulative (1,000s) 300 3,000 +2,692mil. kWh 2,457 2,522 (+ 29.6%) 12,000 11,801 250 2,350 2,500 2,225 2

  6. Slide 6: 2Q Results: Sales and Operating Profit/Loss by Business Segments

    FY2020 2Q Results : Sales and Operating Profit/Loss by Business Segments vs. FY2019 2Q 6 (unit : billion yen) Segment Profit(Operating profit Net sales + Equity income/loss of subsidiary) FY2020 2Q FY2019 2Q FY2020 2Q FY2019 2Q Results Results Change ％ Results Results Change ％ Gas 544.0 639.6 -95.6

  7. Slide 7: 2Q Results: Ordinary Profit Analysis vs. FY2019 2Q

    FY2020 2Q Results: Ordinary Profit Analysis vs. FY2019 2Q 7  City Gas +¥3.6bn Revised in red on Nov 5th,2020 ・Decrease in gross margin -¥3.8bn: Change in sales volume, etc. -20.9 (incl. change due to temp effect -0.1), sliding time lag effect +5.1, third-party access revenue +8.0, etc. Gas (Net sal

  8. Slide 8: FY2020 Full Year Forecast

    02 FY2020 Full Year Forecast Only segment profit announced in previous forecast (as of July 29, 2020). Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  9. Slide 9: Consolidated Forecast Highlights: Profit Up

    FY2020 Consolidated Forecast (Apr. 1, 2020 – Mar. 31, 2021) 9 Highlights:Profit UP(※)(segment profit, vs. previous forecast) (+/- indicate impact on profit, billion yen) (※) Revised on Nov. 2nd,2020 vs. Previous vs. Forecast FY2019 Revised in red on Nov 5th,2020 Decrease in city gas unit price due t

  10. Slide 10: Full Year Forecast: City Gas sales volume

    FY2020 Full Year Forecast Consolidated Gas Sales Volume/ Number of Customers 10 City Gas sales volume: Number of customers(City Gas), LNG sales volume,Average temperature （ Unit： mil. ㎥） VS. Previous Forecast Previous FY2019 City gas sales volume and number of 15,000 Forecast Change Change Forecast

  11. Slide 11: Full Year Forecast: Electricity sales volume

    FY2020 Full Year Forecast Consolidated Electricity Sales Volume/ Number of Customers 11 Electricity sales volume： New electricity retail customers won by Tokyo Gas （ Unit：mil. kWh ） Cumulative (1,000s) VS. Previous Forecast 25,000 24,146 3,800 （As of Mar.2023 ） Electricity sales volume and number of

  12. Slide 12: Full Year Forecast: Sales and Profit by Business Segments vs. Previous Forecast

    FY2020 Full Year Forecast: Sales and Operating Profit/Loss by Business Segments vs. Previous Forecast 12 (unit : billion yen) Segment Profit(Operating profit Net sales + Equity income/loss of subsidiary) FY2020 Previous FY2020 Previous Forecast Forecast Change ％ Forecast Forecast Change ％ Gas 1,132.

  13. Slide 13: Forecast: Segment Profit Analysis vs. Previous Forecast

    FY2020 Forecast: Segment Profit Analysis vs. Previous Forecast 13 Gas  City Gas +¥8.2bn +¥7.7bn ・Increase in gross margin +¥8.1bn: Change in sales volume, etc. +12.4 (incl. change (+8.7%) due to temp effect -0.2), sliding time lag effect -4.3 Electric  LNG Sales -¥0.5bn: sliding time lag effect -0

  14. Slide 14: Factors for Changes from FY2019

    Factors for Changes from FY2019 14 (+/- indicate impact on profit, billion yen) Forecast as of 1Q Forecast as of 2Q Item Main contents Impact*1 Impact*2 (+) Sliding time lag Sliding time (+) City gas temperature affect Approx. +22.0 Approx. +17.0 lag effect, etc. (+) Pension actuarial differences Co

  15. Slide 15: Full Year Forecast: Sales and Profit by Business Segments vs. FY2019

    FY2020 Full Year Forecast: Sales and Operating Profit/Loss by Business Segments vs. FY2019 Results 15 (unit : billion yen) Segment Profit(Operating profit Net sales + Equity income/loss of subsidiary) FY2020 FY2019 FY2020 FY2019 Forecast Results Change ％ Forecast Results Change ％ Gas 1,132.1 1,355.4

  16. Slide 16: Forecast: Ordinary Profit Analysis vs. FY2019 Results

    FY2020 Forecast: Ordinary Profit Analysis vs. FY2019 Results 16 Revised in red on Nov 5th,2020  City Gas -¥1.5bn Gas ・Decrease in gross margin -¥6.6bn: Change in sales volume, etc.-5.3 (incl. change due to temp effect +10.0), sliding time lag effect -1.3 -¥6.2bn (Net sales) -¥188.8bn: Change in vol

  17. Slide 17: Uses of Cash Flow (Capex, Investment and Financing)

    FY2020 Uses of Cash Flow（Capex , Investment and financing） 17 (Unit: billion yen) Previous FY2019 Forecast Main Items Change ％ Change ％ Forecast Results Capital Expenditure ― ― ― Production facilities : 18.5（+8.4） Hitachi LNG terminal expansion, etc. Gas 181.6 Distribution facilities : 98.0（-12.6）Ib

  18. Slide 18: Key Indicators (Consolidated)

    Key Indicators (Consolidated) 18 (Unit: billion yen) FY2020 FY2019 FY2018 Forecast Results Results Total assets (a) 2,827.0 2,537.7 2,428.1 Shareholders’ equity (b) 1,161.0 1,147.8 1,159.0 Shareholders’ equity ratio (b)/(a) 41.1% 45.2％ 47.7％ Interest-bearing debt (c) 1,162.0 905.0 803.2 D/E ratio (c

  19. Slide 19: Reference Materials

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

  20. Slide 20: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate

    Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate 20 Impact of rising JCC by $1/bbl Impact on earnings (Unit: billion yen) 3Q 4Q Full year 3Q -0.1 -1.1 -1.2 Period 4Q ― -0.1 -0.1 Full year -0.1 -1.2 -1.3 Impact of depreciation by ¥1/$ Impact on earnings (Unit: billion yen)

  21. Slide 21: Crude oil price, Exchange rate

    Crude oil price・Exchange rate vs. FY2019 Results 21 Crude oil price（Japan Crude Cocktail Prices） ($/bbl) 80.00 70.00 60.00 50.00 40.00 30.00 20.00 FY2020 FY2019 Exchange rate (¥/$) 115.0 110.0 105.0 100.0 FY2020 FY2019 Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  22. Slide 22: Key Topics in FY2020

    Key Topics in FY2020 (Excerpted from Press Releases up to 29th Oct.) 22 ・Launched free solar power system provision service “Zuttomo Solar × Toyota Home” (Apr.20) ・Tokyo Gas Invests In Principle Power, A Leading Floating Wind Power Technology Company (May.27) ・Began verification of virtual power pla

  23. Slide 23: Key Topics in FY2020

    Key Topics in FY2020 (Excerpted from Press Releases up to 29th Oct.) 23 ・Tokyo Gas Group's Interim Initiatives Based on the Emergency Declaration(Apr.7) ・Additional special measures pertaining to gas and electricity bill payments in relation to the 2020 COVID-19 outbreak(Apr.24) ・Additional special

  24. Slide 24: Overseas Projects

    Overseas Projects 24 1 2 4 5 7 3 6 8 Area No Country Subject Main Business Participation year Barnett Upstream Shale gas 2013 Eagle Ford Upstream Shale gas 2016 East Texas Upstream Shale gas 2017 1 U.S.A TGES America Downstream Energy Service 2015 Birdsboro Power Plant Downstream Natural gas power 2

  25. Slide 25: Trends in city gas/electricity switching and number of customers

    Trends in city gas/electricity switching(published data), Number of customers for city gas retail sales(Tokyo gas consolidated) 25 Electricity switchers (based on applications) City gas switchers (based on applications) Monthly(1,000s) Cumulative(1,000s) Monthly(1,000s) Cumulative(1,000s) 500 20,000

  26. Slide 26: 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

Tokyo Gas — FY2020 2Q Earnings Presentation on 6ix