Chubu Electric Power Company,incorporated · TSE:9502
Chubu Electric Power Company,incorporated — Q3 FY2018 Earnings Presentation
54 slides from Chubu Electric Power Company,incorporated's earnings presentation, Jan 31, 2019
Slide 1: Presentation Materials for Investors 3rd Quarter FY2018
Presentation Materials for Investors 3rd Quarter FY2018 January, 2019
Slide 2: INDEX
INDEX 01 Outline of Financial Results for Nine-Months ended December 31, 2018 Summary of Financial Results ･･･････････････01 Electrical Energy Sold ･･･････････････04 Electric Power Supplied and Principal Figures ･･･････････････05 (Reference) Impact of Accrued Income Incurred by Fuel Cost Adjustment
Slide 3: Outline of Financial Results for Nine-Months ended December 31, 2018
01 Outline of Financial Results for Nine-Months ended December 31, 2018 Note: The company’s fiscal year (FY) is from April 1 to March 31 of the following year. FY2018 represents the fiscal year begun on April 1, 2018, and ending on March 31, 2019. 3rd Quarter (3Q) represents nine months period ended
Slide 4: Summary of Financial Results <1>
01 Summary of Financial Results <1> <Points of Financial Results> Consolidated operating revenues: 2,199.1 billion yen Operating revenues increased by 136.4 billion yen compared with 2017/3Q, mainly due to an increase in surcharge and grant based on Act on Special Measures Concerning Procurement o
Slide 5: Summary of Financial Results <2>
02 Summary of Financial Results <2> [Factors contributing to change in consolidated operating revenues] An increase in Others (Billion yen) 2,200.0 22,000 surcharge and grant under act on purchase of renewable energy 48.7 sourced electricity An increase in fuel cost adjustment 32.5 charge 2,100.0 21
Slide 6: Summary of Financial Results <3>
03 Summary of Financial Results <3> [Factors contributing to change in consolidated ordinary income] (Billion yen) 120.0 1,200 Time lag ・Cost reduction achievement in fuel procurement +9.0 100.0 1,000 ・Improvement of the efficiency -47.0 related to the basic costs +8.0 116.2 -14.0→-61.0 Cost reducti
Slide 7: Electrical Energy Sold
04 Electrical Energy Sold <Electrical Energy Sold> (Nonconsolidated) ⁃ Dropped by 1.6TWh to 87.2TWh, compared with 2017/3Q, mainly due to an effect of switches made to other operators, in spite of a sales increase outside Chubu region and an increase in production of the semiconductor industry. (TWh
Slide 8: Electric Power Supplied and Principal Figures
05 Electric Power Supplied and Principal Figures <Electric Power Supplied> （Nonconsolidated） Hydro: The flow rate was higher than 2017/3Q ; thus hydroelectric power output increased by 0.6 TWh. Wholesale: Increased by 2.5 TWh, mainly due to an increase in wholesale volume. Purchased power: Inc
Slide 9: Impact of Accrued Income Incurred by Fuel Cost Adjustment System (Result)
06 (Reference) Impact of Accrued Income Incurred by Fuel Cost Adjustment System (Result) ＜ FY2017/3Q ＞ ＜ FY2018/3Q ＞ Standard fuel price Loss Loss -14.0 billion -61.0 billion Fuel procurement price (basis of fuel cost) Average Fuel price (basis of fuel cost adjustment charge) 2017/4 2018/1 2018/4 20
Slide 10: Summary of Forecast for FY2018 <1>
07 Summary of Forecast for FY2018 <1> <Forecast> Forecasts of financial results have been revised from the previous announcement made in October 26, 2018. Consolidated operating revenues: 3,000.0 billion yen (forecast) *No change from the previous announcement Consolidated ordinary income: 110.0
Slide 11: Summary of Forecast for FY2018 <2>
08 Summary of Forecast for FY2018 <2> (TWh,%) [Principal figures] Current October 26 Change (Electrical energy sold) (A) (B) (A-B) (A-B)/B Low voltage 36.4 36.4 - - High voltage ・Extra-high voltage 82.1 82.1 - - Total 118.5 118.5 - - [Reference] Electrical energy sold including group 124.2 124.2 - -
Slide 12: Impact of Accrued Income Incurred by Fuel Cost Adjustment System in FY2018 (Forecast)
(Reference) 09 Impact of Accrued Income Incurred by Fuel Cost Adjustment System in FY2018 (Forecast) ○ October 26 (Loss of 60.0 billion yen) ○Current(Loss of 50.0billion yen) Standard fuel price Standard fuel price ＜FY2018＞ ＜FY2018＞ Loss Loss -60.0 billion -50.0 billion Fuel procurement Fuel procure
Slide 13: Management Situation
02 Management Situation Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Slide 14: Initiatives to Address Management Challenges and Toward Realization of Our Vision
Initiatives to Address Management Challenges and 10 Toward Realization of Our “Vision” Changing social structure Changing business systems Intensifying competition among business Shrinking energy market “Initiatives to Address Management Challenges” (four priority measures) operators Diversifying cu
Slide 15: Transition to a Business Model with Unbundling of Each Sector
11 Transition to a Business Model with Unbundling of Each Sector With the changes in the system, including full liberalization of the electricity retail market and the legal unbundling of the power transmission/distribution division, that made power generation, power transmission/distribution, and
Slide 16: Improving Safety Further at Hamaoka Nuclear Power Plant
Improving Safety Further at Hamaoka Nuclear Power Plant Safety improvement measures for Hamaoka Nuclear Power Plant (prevent 12 accidents and prepare for their occurrence) Under a strong determination to “not allow another accident like that at the Fukushima Daiichi Nuclear Power Plant,” the Hamao
Slide 17: Aiming for a power plant that is safer and more trusted
Improving Safety Further at Hamaoka Nuclear Power Plant 13 Aiming for a power plant that is safer and more trusted In order for the business operator itself to squarely reconsider the safety of nuclear power and make efforts to continuously improve safety in the wake of the Fukushima Daiichi accid
Slide 18: Responding to the introduction/expansion of renewable energy (upgrading the power network)
Stable Power Supply for a New Age Responding to the introduction/expansion of renewable energy 14 (upgrading the power network) In response to output fluctuations in renewable energy (distributed energy resources), we will improve the accuracy of output prediction and conduct optimal operation of
Slide 19: Improve management efficiency to strengthen business base <1>
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 15 Improve management efficiency to strengthen business base <1> Aiming to strengthen our business base through improved management efficiency, we will continually work at reducing repair costs and will streamline equipmen
Slide 20: Improve management efficiency to strengthen business base <2>
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 16 Improve management efficiency to strengthen business base <2> [Specific initiative example: improving thermal efficiency of LNG combined cycle generation plants] We are working on cutting fuel costs by improving the effic
Slide 21: Improve management efficiency to strengthen business base <3>
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 17 Improve management efficiency to strengthen business base <3> [Specific initiative example: improving thermal efficiency of LNG combined cycle generation plants] Based on past hazard results and process of failure develop
Slide 22: Accelerate growth after completion of value chain in JERA
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 18 Accelerate growth after completion of value chain in JERA We will complete a whole value chain from upstream investments and fuel procurement through power generation to power and gas wholesale sales by integrating our
Slide 23: Provide energy services that continue to be chosen by customers
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 19 Provide energy services that continue to be chosen by customers In order to continue to be chosen by customers in a liberalized retailing market, we will deliver new services that meet customers needs using IoT, etc., n
Slide 24: Establish new growth fields (provide new forms of community)
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 20 Establish new growth fields (provide new forms of community) The Chubu Electric Power Group has contributed to regional development through the energy business. In order to help resolve social issues faced by communitie
Slide 25: Carrying out ESG management (E)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 21 Carrying out ESG management (E) We carry out business activities with awareness of ESG (environment, society, and governance), in order to fulfil our corporate social responsibility (CSR), incr
Slide 26: Carrying out ESG management (S・G)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 22 Carrying out ESG management (S・G) （Social） （Governance） So that employees will work with vitality, we will promote Aiming for sustainable growth, we will strive to further work-life balance, base
Slide 27: Reference Data (1): Financial Results
03 Reference Data(1): Financial Results Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Slide 28: Consolidated Statements of Income
23 Consolidated Statements of Income (Billion yen,%) 2018/3Q 2017/3Q Change (A) (B) (A-B) (A-B)/B Operating revenues 2,199.1 2,062.7 136.4 6.6 Non-operating revenues 19.6 16.0 3.6 22.8 Ordinary revenues 2,218.8 2,078.7 140.0 6.7 Operating expenses 2,104.2 1,937.8 166.3 8.6 Non-operating expenses 24.
Slide 29: Nonconsolidated Statements of Income <1>: Operating Revenues
24 Nonconsolidated Statements of Income <1>: Operating Revenues (Billion yen,%) 2018/3Q 2017/3Q Change [Major factors for change] (A) (B) (A-B) (A-B)/B ⁃ An increase in fuel cost Electricity sales revenues 1,591.8 1,564.5 27.2 1.7 adjustment charge +86.1 ⁃ A decrease in electrical energy Sold power
Slide 30: Nonconsolidated Statements of Income <2>: Operating Expenses
25 Nonconsolidated Statements of Income <2>: Operating Expenses (Billion yen,%) 2018/3Q 2017/3Q Change [Major factors for change] (A) (B) (A-B) (A-B)/B ⁃ Low performance in pension assets Salaries and employee benefits 139.8 135.7 4.1 3.0 management Fuel 580.5 514.3 66.1 12.9 ⁃ Differences in power
Slide 31: Nonconsolidated Statements of Income <3>: Net Income
26 Nonconsolidated Statements of Income <3>: Net Income (Billion yen,%) 2018/3Q 2017/3Q Change (A) (B) (A-B) (A-B)/B Operating income 83.2 111.9 (28.7) (25.7) Non-operating revenues 12.1 9.0 3.1 34.9 Non-operating expenses 22.2 23.4 (1.2) (5.2) Ordinary revenues 2,009.2 1,896.8 112.4 5.9 Ordinary ex
Slide 32: Consolidated and Nonconsolidated Financial Standing
27 Consolidated and Nonconsolidated Financial Standing (Billion yen) Dec 31, 2018 Mar 31, 2018 Change (A) (B) (A-B) Consolidated 5,551.3 5,529.4 21.9 Assets Nonconsolidated 4,980.5 5,001.2 (20.6) Consolidated 3,724.2 3,737.4 (13.2) Liabilities Nonconsolidated 3,512.9 3,556.1 (43.2) Consolidated 1,82
Slide 33: Impact of the Feed-in-Tariff Scheme for Renewable Energy
28 Impact of the Feed-in-Tariff Scheme for Renewable Energy <Result of 2018/3Q (change from the previous year in parenthesis)> Renewable energy Electricity generator Electric customers utility Purchased cost (Purchased power Surcharge under act on purchase of from other suppliers) renewable energy s
Slide 34: Ordinary Income (Loss) and Net Income (Loss)
29 Ordinary Income (Loss) and Net Income (Loss) [Ordinary Income (Loss)] [Net Income (Loss)] (billion yen) (billion yen) 300.0 300.0 Nonconsolidated Consolidated Nonconsolidated Consolidated 250.0 250.0 80.0 billion yen (Consolidated) 65.0 billion yen 200.0 110.0 billion yen 200.0 (Nonconsolidated)
Slide 35: Cash Flow (Consolidated)
30 Cash Flow (Consolidated) （billion yen） 800.0 Cash Flows from Operating Activities Cash Flows from Investing Activities FCF 600.0 562.4 539.1 449.7 476.8 424.1 400.0 335.0 296.7 290.0 254.4 227.6 203.7 194.0 200.0 176.8 113.6 79.6 0.0 (25.1) (70.2) (62.8) (102.9) (200.0) (150.0) (242.3) (247.0) (2
Slide 36: Fund Raising and Outstanding Interest-bearing Debt
31 Fund Raising and Outstanding Interest-bearing Debt We raised total approx. 1,500.0 billion yen in long-term funding for 3 years since the shutdown of Hamaoka Nuclear Power Station. We forecast to raise approx. 70.0 billion yen in long-term funding in FY2018. We forecast outstanding Interest
Slide 37: Financial Ratio, Credit Ratings
32 Financial Ratio, Credit Ratings [Shareholders’ equity ratio] [Debt-Equity ratio] Approx. 33% (%) (Times) 35.0 as of Apr. 2019* Nonconsolidated Consolidated (Consolidated) Nonconsolidated Consolidated Approx. 1.7 times at the end of FY2018 Approx. 31% 2.5 (Consolidated) as of Apr. 2019* (Nonconsol
Slide 38: ROA and ROE
33 ROA and ROE （%） [ROA] （%） [ROE] 6.0 16.0 Nonconsolidated Consolidated Nonconsolidated Consolidated 14.0 5.0 12.0 4.0 10.0 Approx. 2% (Nonconsolidated, Consolidated) Approx. 4% 3.0 8.0 (Nonconsolidated, Consolidated 6.0 2.0 4.0 1.0 2.0 0.0 0.0 (2.0) (1.0) (4.0) (2.0) (6.0) (3.0) (8.0) 2009 2010 20
Slide 39: Segment Information
34 Segment Information [Operating revenues] (Billion yen) 2018/3Q 2017/3Q Change (A) external customers (B) external customers (A-B) external customers Power Generation 825.6 36.7 794.9 25.5 30.6 11.1 Power Network 544.8 88.1 534.1 57.4 10.6 30.7 Customer Service & Sales 2,009.2 1,928.6 1,929.1 1,85
Slide 40: Sales Figures
35 Sales Figures 2018/3Q Target The number of applications ; Chubu region Approx.1.59 million ― New electric tariff menu Increase to 30.0 billion kWh/year Electrical energy sold outside of Chubu region 6.0 billion kWh (around FY2030) in the Tokyo Outside of metropolitan area Chubu region The number
Slide 41: Monthly Breakdown of Electrical Energy Sold
36 Monthly Breakdown of Electrical Energy Sold (TWh) FY2018 Apr. May June July Aug. Sep. Oct. Nov. Dec. Low voltage ２.９ ２.５ ２.３ ２.７ ３.６ ３.３ ２.３ ２.５ ３.０ High voltage・ Extra-high ６.４ ６.３ ６.９ ７.６ ７.６ ７.３ ７.０ ６.６ ６.５ voltage Total ９.３ ８.９ ９.１ １０.３ １１.２ １０.５ ９.３ ９.１ ９.５ (TWh) FY2017 Apr. May June July Au
Slide 42: Reference Data (2): Management Information
03 Reference Data (2) : Management Information Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Slide 43: Responding to the introduction/expansion of renewable energy (reuse storage batteries for EVs)
Stable Power Supply for a New Age Responding to the introduction/expansion of renewable energy 37 (reuse storage batteries for EVs) In cooperation with Toyota Motor Corporation, we will start new verification aimed at establishing a high- capacity storage battery system that reuses storage batteri
Slide 44: Initiatives of JERA <1>
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 38 Initiatives of JERA <1> [Domestic power generation business (New establishment and replacement)] Bring together the knowledge and technology of both companies to establish and replace thermal power stations, and thereby s
Slide 45: Initiatives of JERA <2>
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 39 Initiatives of JERA<2> [Fuel business (upstream, procurement, transportation, trading)] Optimum portfolio is create using the world’s largest procurement scale and trading, and fuel procurement that can flexibly respond t
Slide 46: Provide energy services that continue to be chosen by customers (Tokyo metropolitan area)
Strengthening Our Business Base for Growth and Achieving Sustainable Growth Provide energy services that continue to be chosen by customers (expand 40 business in the Tokyo metropolitan area) We jointly established a new company with Osaka Gas to conduct sales of services related to electric power
Slide 47: Establish new growth fields (provide new forms of community)
Strengthening Our Business Base for Growth and Achieving Sustainable Growth 41 Establish new growth fields (provide new forms of community) Services to improve the quality of life of Provide various “new forms of community” individuals by utilizing various data • For new community development in urb
Slide 48: Carrying out ESG management (E: Composition of Electric Power Output)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 42 Carrying out ESG management (E : Composition of Electric Power Output) Based on energy mix of Japan, aim for optimum composition of power sources by combining various types of power source, suc
Slide 49: Carrying out ESG management (E: Reduction of CO2 emissions)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 43 Carrying out ESG management (E : Reduction of CO2 emissions) Japanese government set up the target of reducing greenhouse gas emissions (26% reduced by FY2030) as Japan’s goal of the Paris Agre
Slide 50: Carrying out ESG management (E: Improvement of thermal efficiency)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 44 Carrying out ESG management (E : Improvement of thermal efficiency) 50.0 (%) [Change of total thermal efficiency (LHV basis)] [Outline of development of Taketoyo Chubu 10 EPCos Total 48.94 Therma
Slide 51: Carrying out ESG management (E: Promotion of Renewable Energy)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 45 Carrying out ESG management (E : Promotion of Renewable Energy) (As of the end of December, 2018) Development locations of hydroelectric power station (Reference) Conventional hydro Chubu Electri
Slide 52: Carrying out ESG management (E: connect & manage)
Establishing a Business Structure/Management Base that can Respond Instantly to Environmental Changes 46 Carrying out ESG management (E : connect & manage) Chubu Electric Power has begun an initiative (N-1 power control) to use capacity that is set aside for an emergency in case of failure, based
Slide 53: 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
Slide 54: Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Copyright © CHUBU Electric Power Co.,Inc. All Right Reserved.
Chubu Electric Power — Q3 FY2018 Earnings Presentation on 6ix