Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — Q3 FY2022 Earnings Presentation
31 slides from Tokyo Gas's earnings presentation, Jan 31, 2023
Slide 1: FY2022 3Q Financial Results
Lf; FY2022 3Q_ Financial Results ended December, 2022 January 31, 2023 "FE TOKYO GAS TSE:9531
Slide 2: FY2022 Consolidated Financial Results
O01 FY2022 Consolidated Financial Results ended December, 2022 Note: Figures for the fiscal year ended March 31, 2022, represent figures after retroactive application and restatement following a change in accounting policies and changes in presentation, respectively. "RTOKYO GAS
Slide 3: Both sales and profit increased in 3Q FY2022
Both sales and profit increased in 3Q FY2022. Net sales increased by ¥896.9 billion. This was mainly attributable to an increase in city gas unit price due to resource cost adjustments in the Energy Solution segment. Operating expenses rose by ¥714.6 billion. This mainly reflected an increase in res
Slide 4: City gas sales volume decreased by 0.5%
The city gas sales volume in 3Q FY2022 decreased by 0.5% mainly due to the negative impact of diminished residential demand from customers staying at home. This offset the positive impact of an increase in commercial volume on the back of a recovery from the demand decline caused by the pandemic. 4
Slide 5: Total electricity sales volume increased by 26.9%
Total electricity sales volume in 3Q FY2022 increased by 26.9%. Retail electricity sales rose by 6.7% due to an increase in the number of customers, while the wholesale and other electricity sales volume grew by 39.4% due to a rise in demand by wholesale customers. 5
Slide 6: Net sales and segment profit by segment
This slide shows net sales by segment and segment profit, which is operating profit plus equity income/loss of subsidiaries, and changes thereof. 6
Slide 7: Changes in segment profit: Energy Solution, Network, Overseas
The ¥131.2 billion increase in profit of the Energy Solution segment and the Network segment combined mainly reflect a rise in the gross margin of city gas due to a sliding time lag effect and other factors. The electricity business saw a ¥5.0 billion increase in profit due in part to the impact of
Slide 8: Year-on-year segment changes under previous classification
For your reference, this slide shows year-on-year changes in segment net sales and profits under the previous segment classification before the segment changes in April 2022. 8
Slide 9: FY2022 Full Year Forecast
02 FY2022 Full Year Forecast Note: Figures for the fiscal year ended March 31, 2022, represent figures after retroactive application and restatement following a change in accounting policies and changes in presentation, respectively. "ETOKYOGAS
Slide 10: Full-year forecast for sales and profits upgraded
For the FY2022 full-year, our forecast for both net sales and profits has been upgraded. Our economic framework for January onward, which serves as a basis of our forecast, has been revised for crude oil price, from $100/barrel to $90/barrel. There has been no changes to the foreign exchange rate, w
Slide 11: Upgraded forecasts for operating and ordinary profit
have been upgraded by ¥181.0 billion and ¥165.0 billion, respectively. We have also upgraded our forecast for profit attributable to owners of parent by ¥118.0 billion to ¥236.0 billion. 10
Slide 12: Forecast of gas sales volume decreased by 0.7%
Our forecast of gas sales volume has decreased by 0.7% from our previous forecast, mainly reflecting the impact of diminished residential demand from customers staying at home. 11
Slide 13: Forecast of electricity sales volume increased by 1.2%
Our forecast of electricity sales volume has increased by 1.2% from our previous forecast, mainly reflecting an expected increase in wholesale sales volume. 12
Slide 14: Segment sales and profit forecasts and changes
This slide shows segment sales and profit forecasts and changes from the previous forecasts. The major profit forecast changes for each segment are explained in the next slide. 13
Slide 15: Energy Solution profit forecast upgraded by ¥189.4 billion
For the Energy Solution segment, we have upgraded our profit forecast by ¥189.4 billion. This mainly reflects an expected increase in city gas profit due to factors including the sliding time lag effect, an increase in gross margin in the electricity business due to the impact of economic framework
Slide 16: Comparison of new forecasts with prior-year results
Slides 15, 16, and 17 show comparisons between our new full-year forecasts and the actual performance of the previous year. 15
Slide 17: FY2022 Forecast: Ordinary Profit Analysis (New Segments)
FY2021 (New Segments] FY2022 Forecast: Ordinary Profit Analysis © Increase in city gas gross margin +¥126.2 bn: Change in volume, etc. -9.7 (incl. change due to temp effect -0.5), E sliding time lag effect +135.9 nergy (Net sales) +¥543.7 bn: Change in volume, etc. -26.7, sliding time solution lag e
Slide 18: FY2022 Consolidated Forecast: Factors for Changes in Ordinary Profit
FY2022 Cons lated Forecast (Apr. 1, 2022 - Mar. 31, 2023) 1 7 Hl Factors for Changes from FY2021 Ordinary profit (billion yen) 350 300 250 200 150 100 so (Before etrosctive adjustments) FY2022 Forecast Copyright® TOKYO GAS Co., Ltd. All Rights Reserved. "STOKYOGAS 17
Slide 19: Expected use of cash flows in FY2022
This slide details the expected use of cash flows in FY2022. 18
Slide 20: Key indicators on a consolidated basis
This slide shows key indicators on a consolidated basis. 19
Slide 21: Reference materials
The following reference materials include a table on the sensitivity to the economic framework assumptions, the trend of crude oil prices and exchange rates, key topics in 3Q FY2022, and a list of major overseas investment projects, etc. 20
Slide 22: Gas Gross Margin Sensitivity to Crude Oil Price
Gas Gross Margin Sensi in Crude Oil Price Impact of rising JCC (apan Crude Cocktail Prices) by $1/bbl (Unit: billion yen) Impact on earnings 4Q Period 4Q 0.0 Impact of depreciation of the yen by ¥1/$ Impact on (Unit: billion yen) earnings 4Q Period 4Q -1.1 "ETOKYOGAS 21
Slide 23: Crude oil price - Exchange rate
Crude oil price - Exchange rate Crude oil price (Japan Crude Cocktail Prices) ($/bbl) 120.00 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 oe f 8 gt & of —e-FY2022 —eFY2021 ee F2020 & F Exchange rate (¥/$) 150.0 145.0 140.0 135.0 130.0 125.0 120.0 115.0 110.0 105.0 _ 100.0 ef & SF #
Slide 24: Key Topics in FY2022 by 3Q: Business & financial topics
Key Topics in FY2022 by 3Q (Excerpted from Press Releases) 23 Hl i i i “1 Press releases issued by Tokyo Gas Engineering Sol (1) Business & financial topics 4 Pros (Shenses bowed by Toke Ges Newer lutions Launch of Non-FIT/FIP renewable energy balancing service (Apr.18) Number of electric power cont
Slide 25: Key Topics in FY2022 by 3Q: Nonfinancial ESG topics
Key Topics in FY2022 by 3Q (Excerpted from Press Rele (2) Nonfinancial ESG topics a rare erences en VT ORTo, ae er are Major related materiality Transition to a holdings group structure '@ Governance & compliance Selection as an implementer of NEDO Green Innovation Fund Projects: Development of Tech
Slide 26: Key Topics in FY2022 by 3Q (Press Releases)
Key Topics in FY2022 by 3Q (Excerpted from Press Releases) \Climate change Tokyo Gas Network, Osaka Gas Network and Toho Gas Network signed partnership agreement for ensuring safe and [MB sirmansican ge, stable supply and spreading the use of city gas"? (Apr.20) ‘Safety & fakat§ preparedness Tokyo G
Slide 27: Key Topics in FY2022 by 3Q: Offshore wind wake simulation
Key Topics in FY2022 by 3Q (Excerpted Tokyo Gas, Kyushu University, and Japan Renewable Energy Corporation have started developing a tool for precisely simulating the turbine wake effect” that occurs in offshore wind power generation to improve capacity factor and reduce failure rate, with the aim o
Slide 28: ESG-related topics: climate change, e-methane project
Key Topics in FY2022 by 3Q (Excerpted from Press Releases) 27 EH ESG-related topics: climate change SSS TIS] -«Ctalls below https://www.tokyo- a.co,jp/en/IR/support/pdf/2022112} Tokyo Gas(TG) , Osaka Gas(0G), Toho Gas(THG) and Mitsubishi Corporation(MC) have entered into an agreement and commenced t
Slide 29: Overseas Projects
Overseas Projects 28 Ares No e North America 2) ) ° Southeast Asia cs) 1c) oe NG Darwin Pluto Oceania © —*wstralie Gorgon Upstream Production, liquefaction and sales of LNG 2009 Curtis i ‘and sales of LNG 2011 Ichthys m__Production, and sales of LNG 2012 i | | | i Copyright® TOKYO GAS Co., Ltd. All
Slide 30: Changes in Disclosable Segments
Changes in Disclosable Segments (mapping of key changes) 29 Hl In accordance with our approach to accounting management, we changed our classifications for legally disclosable segments in order to better align them with management practices under the holdings-type group structure instituted in FY202
Slide 31: 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