Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — Q3 FY2019 Earnings Presentation
24 slides from Tokyo Gas's earnings presentation, Jan 30, 2020
Slide 1: Tokyo Gas
"F TOKYO GAS January 30, 2020
Slide 2: 1. FY2019 Consolidated Financial Results
1. FY2019 Consolidated Financial Results ended December, 2019 TOKYO GAS
Slide 3: Sales increased but profits decreased in 3Q FY2019
Sales increased but profits decreased in 3Q FY2019. Net sales were ¥1,362.0 billion, a rise of ¥35.4 billion. This was mainly attributable to performance in the electric power segment and the gas segment. In the electric power segment, net sales rose reflecting the benefit of ¥58.0 billion segment f
Slide 4: City gas sales volume was 9,923 million m3 in 3Q
City gas sales volume was 9,923 million m3 in 3Q, a 6.7% drop year on year. The main factors for the decrease were a decrease of 415 million m3 among power generation customers, a decline of 186 million m3 among industrial customers, and a decrease of 69 million m3 in wholesale. 3
Slide 5: Electricity sales volume in 3Q FY2019 totaled 14,158 million kWh
Electricity sales volume in 3Q FY2019 totaled 14,158 million kWh, up 28.7% year on year. Retail electricity sales volume was 5,766 million kWh, up 34.3% year on year, due to an increase in the number of customers. New electricity retail customers won by Tokyo Gas is growing steadily and reached 2,23
Slide 6: Net sales and segment profit by segment
Slide 5 shows net sales by segment and segment profit (operating profit + equity income/loss of subsidiary), and changes thereof. Segment profit was boosted by the ¥29.9 billion increase in the gas segment. 5
Slide 7: Changes in segment profit: gas, electric power, overseas
In the gas segment, the growth in profit of ¥29.9 billion is mainly attributable to a ¥30.6 billion rise in the sliding time lag and a ¥10.8 billion increase in third-party access revenue. In the electric power segment, profit was up ¥1.5 billion. The rise in gross profit due to an increase in retai
Slide 8: 2. FY2019 Full Year Forecast
2. FY2019 Full Year Forecast "TOKYO GAS
Slide 9: Full-year forecasts unchanged from 2Q
Regarding the full-year forecasts that are included in slide 8 and onward, we have not revised our profit forecast that was announced in 2Q. Our profit forecast remains unchanged from the previous forecast by supplementing the drop in gross profit due to a decline in gas sales volume with a reductio
Slide 10: Gas sales volume outlook revised downward
Gas sales volume outlook has been revised downward by 224 million m3 or 1.6% from the previous forecast. This is mainly attributable to a 193 million m3 downward revision due to a drop in the utilization by large customers. 9
Slide 11: Electricity sales volume outlook revised upward
Electricity sales volume outlook has been revised upward by 330 million kWh or 1.6% from the previous forecast. One of the factors is the increase in the number of retail customers up to 3Q. The number of electricity retail customers is expected to reach 2.4 million by the end of this fiscal year. 1
Slide 12: FY2019 segment net sales and profit forecasts vs previous forecast
This slide explains our FY2019 segment net sales and segment profit forecasts and changes from the previous forecast. There has been no large difference in the forecast of segment profits from the forecast announced in 2Q. The difference from the previous forecast for each segment will be explained
Slide 13: Changes in forecast by segment
In the gas segment, the drop in gross profit due to a decline in sales volume following a drop in utilization by large customers will be supplemented by a reduction in fixed costs, etc. In the overseas segment, the forecast was decreased by ¥1.4 billion due to a drop in profit of an upstream project
Slide 14: FY2019 segment forecasts vs previous fiscal year
This slide explains our FY2019 segment net sales and segment profit forecasts and changes from the previous fiscal year. The major changes in segment profits are explained in the following slide. 13
Slide 15: FY2019 Forecast: Ordinary Profit Analysis
FY2019 Forecast: Ordinary Profit Analysis <vs. FY2018 Results> Change +¥24.7bn (+27.5%) FY2018 Results| ¥89.3bn "ETOKYOGAS = (Unit: billion yen) *+/- indicate contributions to profit. Gas © City gas +¥14.8bn + Increase in gross margin +¥26.1bn: Sliding time lag effect +21.0, change insales + ¥16.9bn
Slide 16: Plans for using cash flows in FY2019
This slide details plans for using cash flows in FY2019. 15
Slide 17: Consolidated key indicators
Slide 16 indicates consolidated key indicators. 16
Slide 18: Reference materials
The following reference materials including a table on economic framework assumption, plus a list of major press releases in from April 1, 2019 to January 30, 2019, a list of overseas projects, and the number of switches to other electricity and city gas service providers. 17
Slide 19: Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate
Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate Impact of rising JCC by $1/bbl (Unit: billion yen) Impact on earnings 4Q Period 4Q -0.1 Impact of depreciation by ¥1/$ (Unit: billion yen) Impact on earnings 4Q Period 4Q -1.1 "ETOKYOGAS =| 18 18
Slide 20: Key Topics in FY2019 (Excerpted from Press Releases)
Key Topics in FY2019 (Excerpted from Press Releases up to 30th January) "TOKYO GAS =| - Tokyo Gas Group Initiatives in FY2019 to Achieve GPS2020 (Apr.10) Management Tokyo Gas Group Management Vision Compass2030 Providing energy and solutions to the future of our life, society and the earth (Nov. Str
Slide 21: Key Topics in FY2019 (Excerpted from Press Releases)
Key Topics in FY2019 (Excerpted from Press Releases up to 30th January) "TOKYO GAS = Digital + Investment in Next Energy & Resources and joint development of loT platform for coordinated control of distributed energy appliances to Innovations further enhance services and expand use of renewables (Ju
Slide 22: Overseas Projects
Overseas Projects WNorth America Jeamett fanizos 2013 [Eagle Ford setae) 2016 lu lobsa Fatteses Sia es 2017 S America hope 2015 [Birdsboro Power Plant Senin tan tower 2017 fAcario Ventures ee ivan 2017 pee tra ga power = }@ |exico _|MrT Falcon abstr 2010 [ lHeolios En powsekea = 2019 [Upstream eatin
Slide 23: Trends in city gas/electricity switching
Trends in city gas/electricity switching(publisheddata), Number of customers for city gas retail sales(Tokyo gas consolidated) = TOKYO GAS Electricity switchers (based on applications) City gas switchers (based on applications) Monthy(1,000s) Cumulative(1,000s)__ Monthiy(1,000s) Cumulative(1,000s) 5
Slide 24: Cautionary Statement regarding Forward-looking Statements
"E TOKYO GAS < 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 t