Hokkaido Electric Power Company,incorporated · TSE:9509
Hokkaido Electric Power Company,incorporated — FY2022 Earnings Presentation
36 slides from Hokkaido Electric Power Company,incorporated's earnings presentation, May 12, 2022
Slide 1: Financial Result for the Year Ended March 31, 2022
■Financial Result for the Year Ended March 31, 2022 May 12, 2022 Hokkaido Electric Power Co., Inc.
Slide 2: Table of Contents
■Table of Contents ■ Financial Results and Forecasts ■ Efforts by Management (Overview of Business Plans - Additional Explanatory Material) ・ Consolidated Business Results/Financial Status ・ [Management Vision] Management ・・・ 3 ・・・ 26 Goals for 2030 ・ Consolidated Statement of Operations ・・・ 4 ・ Ele
Slide 3: Financial Results and Forecasts
■Financial Results and Forecasts 2
Slide 4: Consolidated Business Results/Financial Status
■Consolidated－ Business Results/Financial Status 【 Business results】 （Billion yen） April 1 –March 31, April 1 –March 31, Increase/ Comparison 2022 2021 Decrease (A)/(B) % (A) (B)※ (A)-(B) Operating Revenue 663.4 585.2 78.2 13.4 Operating Profit 24.9 53.7 (28.8) (53.6) Ordinary Profit 13.8 41.1 (27.3
Slide 5: Consolidated Statement of Operations
■Consolidated－ Statement of Operations （ Billion yen ） April 1, 2021 – April 1, 2020 – March 31, 2022 March 31, 2021 Increase/Decrease Comparison (A) (B) (A)-(B) (A)/(B) % Operating Revenues 663.4 585.2 78.2 13.4 Electricity utility operating revenue 625.4 547.3 78.1 14.3 Revenue Ordinary Other busi
Slide 6: Outline of Consolidated Financial Results
■Outline of Consolidated Financial Results Operating Revenue Increased 78.2 billion yen year-on-year to 663.4 billion yen, driven mainly by brisk (Increased) wholesale sales and fuel cost adjustments associated with a rise in fuel prices. Decreased 27.3 billion yen from the previous fiscal year to 1
Slide 7: FY2022 Results (Consolidated Results)
■FY2022 Results (Consolidated Results) Factors behind increase/decrease in ordinary income (compared to the same period of the previous year) (Unit: 100 million yen) FY2022 Results (Comparison with the previous year) Impact of cold spell in previous fiscal year -184 Impact from retail Decline in rep
Slide 8: Forecasts of Consolidated Financial Performance for FY2023
■Forecasts of Consolidated Financial Performance for FY2023 (Ending March 2023) <FY2023 Consolidated Earnings Forecast> The energy market remains unstable globally, affected by the situation in Ukraine. Prices of fuels, including oil, have been fluctuating wildly, making it difficult to calculate fu
Slide 9: FY2022 Year-End Dividends and FY2023 Dividend Forecast
■FY2022 Year-End Dividends and FY2023 Dividend Forecast FY2022 Year-End Dividend At their April 28 meeting, the Board of Directors comprehensively considered the financial results and financial position in FY2022 and the expected future management environment, with the policy of maintaining a stable
Slide 10: Financial Results Supplementary Materials
■ Financial Results Supplementary Materials 〇Electricity Sales 〇Monthly Retail Electricity Sales Trends at HEPCO 〇Statement of Operations（Revenue） 〇Power Supply 〇Statement of Operations（Expenses and Ordinary Profit） 〇Segment Information 〇Statements of Cash Flow 〇Time Lag Impact Incurred by Fuel Cost
Slide 11: Consolidated Electricity Sales
Consolidated; Electricity Sales ・ Electricity sales totaled 22,165 million kWh, down 2.3% from a year earlier, due mainly to a severe competitive environment that remains and a decrease in demand from heating due to the impact of higher atmospheric temperatures, despite our aggressive sales activity
Slide 12: Monthly Retail Electricity Sales Trends at HEPCO
Monthly Retail Electricity Sales Trends at HEPCO （GWh, ％） FY2022 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Total Residential 765 726 516 560 648 546 554 681 730 1,029 838 772 8,365 Low-voltage customers Commercial and industrial 174 121 75 86 106 83 83 112 174 385 318 263 1,980 Subt
Slide 13: Consolidated Statement of Operations (Revenue)
Consolidated; Statement of Operations (Revenue) (Unit: billion yen) April 1, 2021 – April 1, 2020 – Increase/ Comparison March 31, 2022 March 31, 2021 Decrease (A)/(B)％ Major cause of increase/decrease (A) (B) (A)-(B) Operating Revenue 663.4 585.2 78.2 13.4 Electric utility operating revenue 625.4 5
Slide 14: Consolidated Power Supply
Consolidated; Power Supply ・We were able to maintain a stable supply by appropriately managing the supply equipment during a time when all units at the Tomari power plant were suspended and the flow rate was below the annual average at 96.2%. （GWh） April 1, 2021 – April 1, 2020 – Increase/ Compariso
Slide 15: Statement of Operations (Expenses and Ordinary Profit)
Consolidated; Statement of Operations (Expenses and Ordinary Profit) (Unit: billion yen) April 1, 2021 – April 1, 2020 – Increase / Major cause of Comparison March 31, 2022 March 31, 2021 Decrease (A) (B) (A)/(B)％ increase/decrease (A) - (B) Electric utility operating expenses 604.9 496.1 108.8 21.9
Slide 16: Consolidated Segment Information
Consolidated; Segment Information ・ Revenue of the HEPCO segment increased 59.2 billion yen from a year earlier to 597.9 billion yen, while segment ordinary income fell 24.2 billion yen to 12.0 billion yen due mainly to the cold spell in the previous fiscal year and a rise in fuel prices, despite so
Slide 17: Consolidated Statements of Cash Flow
Consolidated; Statements of Cash Flow ・ Cash flows from operating activities resulted in a gain of 102.3 billion yen, down 34.2 billion yen from a year earlier, due mainly to a drop in profit before income taxes. ・ Cash flows from investing activities resulted in net cash used of 77.7 billion yen, d
Slide 18: Time Lag Impact Incurred by Fuel Cost Adjustment System
Time Lag Impact Incurred by Fuel Cost Adjustment System FY2021 Approx. 6.0 Billion yen income FY2022 Approx. 29.6 Billion yen loss loss Fuel procurement price (basis of fuel cost) Income Average Fuel price (basis of fuel cost adjustment charge) *The time lag impact is a mechanical calculation of the
Slide 19: Expense breakdown: Personnel
Expense breakdown （Two Companies Total*） ◆Personnel （Billion yen） April 1, 2021 – April 1, 2020 – Increase/ March 31, 2022 March 31, 2021 Decrease Major factors for increase/decrease (A) (B) (A)-(B) ・Decrease in retirement benefit Personnel 55.0 56.5 (1.5) costs ［(2.0)］ 【Amortization of actuarial ga
Slide 20: Expense breakdown: Fuel and Purchased Power
Expense breakdown （Two Companies Total*） ◆Fuel and Purchased Power （Billion yen） April 1, 2021 – April 1, 2020 – Increase/ March 31, 2022 March 31, 2021 Decrease Major factors for increase/decrease (A) (B) (A)-(B) Fuel and 283.4 166.9 116.5 Purchased Power [Cause of increase] ・Rise in fuel prices ［6
Slide 21: Expense breakdown: Maintenance and Depreciation
Expense breakdown （Two Companies Total*） ◆Maintenance （Billion yen） April 1, 2021 – April 1, 2020 – Increase/ March 31, 2022 March 31, 2021 Decrease Major factors for increase/decrease (A) (B) (A)-(B) Maintenance 61.5 69.9 (8.3) ・Decline in repair costs associated with Generation 28.0 36.2 (8.1) Bre
Slide 22: Expense breakdown: Interest and Other Expenses
Expense breakdown （Two Companies Total*） ◆Interest Expenses （Billion yen） April 1, 2021 – April 1, 2020 – Increase/ March 31, 2022 March 31, 2021 Decrease Major factors for increase/decrease (A) (B) (A)-(B) [Interest(on average)%] ［0.67］ ［0.72］ ［(0.05)］ ・Decrease in interest rates Interest Expenses
Slide 23: Key Factors・Sensitivity Factors
Key Factors・Sensitivity Factors Key Factors April 1, 2021 – April 1, 2020 – Increase/ March 31, 2022 March 31, 2021 Decrease (A) (B) (A)-(B) Foreign Exchange Rate (Yen/$) 112 106 6 CIF Crude Oil Price ($/barrel) 77.3 43.4 33.9 Water Flow Rate (%) 96.2 92.3 3.9 Sensitivity Factors （Billion yen） April
Slide 24: Consolidated Statements of Balance Sheets
Consolidated Statements of Balance Sheets (Unit: billion yen) As of March 31, As of March 31, Increase/ Decrease Major factors for increase/decrease 2022(A) 2021(B) (A)-(B) · Decrease in power business non-current assets due to depreciation [(39.1)] Assets 1,992.8 2,001.6 (8.7) · Increase in constru
Slide 25: Consolidated Statements of Comprehensive Income
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income （Billion yen） April 1, 2021 – April 1, 2020 – Increase/ March 31, 2022 March 31, 2021 Decrease (A) (B) (A)-(B) Profit 7.3 36.3 (29.0) Other Comprehensive Income (4.1) 9.7 (13.9) Valuation difference on av
Slide 26: Efforts by Management
■Efforts by Management (Overview of Business Plans - Additional Explanatory Material) 25
Slide 27: Management Goals for 2030
■[Management Vision] Management Goals for 2030 Overview of Business Plans page 6 FY2021 FY2022 2030 Vision Targets Actual Actual Target profit (Consolidated ordinary income) ➤ Phase I: min. 23.0B yen/year 41.1B yen 13.8B yen ➤ Phase II: min. 45.0B yen/year Financial target (Consolidated capital rati
Slide 28: Electricity Retail Sales
■ Electricity Retail Sales Overview of Business Plans pages 15–16 *Nationwide: Average share (kWh) in each supply area of former general electric power companies ■ HEPCO's historical share (kWh) in Hokkaido area* *Calculated based on data in the electricity trading bulletin released by the Electrici
Slide 29: Efforts to Speed Up Restart of Tomari Nuclear Power Station
Overview of Business Plans ■ Efforts to Speed Up Restart of Tomari Nuclear Power Station pages 20–22 ◼ Screening meetings discussed seawall design policy on March 3, 2022 and key points of screening on March 31. ◼ President and regulatory committee exchanged views on April 12 on outcomes of March 31
Slide 30: Response to New Regulatory Standards Compliance Screening ①
■ Response to New Regulatory Standards Compliance Screening ① Overview of Business Plans pages 20–22 Situation of ground motion evaluation ◼ We compiled* the results of the ground motion evaluation worked out without pinpointing the epicenter and a correction report on Ground motion accounting Relea
Slide 31: Response to New Regulatory Standards Compliance Screening ②
Overview of Business Plans ■ Response to New Regulatory Standards Compliance Screening ② pages 20–22 Situation of screening on volcano impact evaluation ◼ At a screening meeting on Oct. 14, 2021, we briefed on Niseko-Raiden volcano group volcanic activity possibility evaluation and effective volcano
Slide 32: Outline of Thermal Power Plants
■[Reference] Outline of Thermal Power Plants Overview of Business Plans pages 25 Record of Power Rated output Power suspension or generation Unit (10,000 kW) Period of Operation* generation decommissioning facility method of facilities March 2019 1 17.5 53 years and 10 months Sub-C (suspended) Naie
Slide 33: Introduction of Hydrogen Production Facility
■ Introduction of Hydrogen Production Facility Overview of Business Plans page 32 ◼ We have decided to introduce a 1MW hydrogen production facility that manufactures hydrogen through electrolysis of water in Tomakomai, Hokkaido. ◼ Hydrogen production using electrolysis of water can absorb surplus po
Slide 34: Hokkaido Hydrogen Business Platform
■ Hokkaido Hydrogen Business Platform Overview of Business Plans page 32 ◼ Nine leading Hokkaido-based private-sector companies jointly established a Hokkaido hydrogen business platform in July 2021 with the goal of developing a hydrogen supply chain in Hokkaido as early as possible and making Hokka
Slide 35: Topics for Period After 3Q Results Announcement
■ Topics for Period After 3Q Results Announcement Overview of business Date Description of effort plans related slides Feb. 10 2022 First acquisition of METI's "DX certificate" in Hokkaido P17 Notice regarding shift to company with supervisory Feb. 25 2022 committee P39 First inclusion in “2022 heal
Slide 36: For further information
This material is compiled based on data available as of May 11, 2022. The company makes no guarantee as to the reliability and integrity of such information, as this is not intended to serve as disclosure material as stipulated by the Financial Instruments and Exchange Law of Japan. Projections conc
Hokkaido Electric Power — FY2022 Earnings Presentation on 6ix