Chubu Electric Power Company,incorporated · TSE:9502
Chubu Electric Power Company,incorporated — H1 FY2012 Earnings Presentation
57 slides from Chubu Electric Power Company,incorporated's earnings presentation, Nov 2, 2012
Slide 1: Investors Meeting 1st Half FY2012
I Investors t M Meeting ti 1st Half H lf FY 2012 November 2012 November, Note: The Company's fiscal year (FY) is from April 1 to March 31of the following year. FY2012 represents the h fiscal fi l year began b on April il 1, 2012, andd ends d on Marchh 31, 2013. 2nd Quarter (2Q) represents six months
Slide 2: Table of Contents
Table of Contents I Outline of Financial Results for Six-Months Ended September 30, 2012 Summary of Financial Results <1> 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 1 Summary of Financial Results <2> 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 2 Electricity Sales 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 3 Generated and Received Power 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 4 Non-consolidated Statements of Income <1> 䞉䞉䞉䞉
Slide 3: Outline of Financial Results for Six Months Period Ended September 30, 2012
I Outline of Financial Results for p Six Months Period Ended September 30,, 2012 © 2012 Chubu Electric Power Co., Inc. All rights reserved.
Slide 4: Summary of Financial Results <1>
Summary of Financial Results <1> 1 [Consolidated] -Operating O ti revenues increased i d for f three th consecutive ti years - We sustained an ordinary loss and net loss for two consecutive years (Billion yen,%) 2012/2Q 2011/2Q Change (A) (B) (A-B) (A B) (A-B)/B (A B)/B Operating revenues 1,336.1 1,
Slide 5: Summary of Financial Results <2>
Summary of Financial Results <2> 㻥 2 < year-on-year comparison i F t Factors for f change h in i consolidated lid t d ordinary di income i (loss) (l ) > -Positive factors -Decrease in accrued income incurred by fuel cost adjustment system +28.1 billion yen - Decrease D iin personnell expenses +9.8 +
Slide 6: Electricity Sales
Electricity Sales 3 <Demand from customers under regulation> -Electric lighting Dropped 2.8% to 16.4 TWh, mainly due to customer's power saving effect. Electric power Dropped 4.9% to 3.1 TWh, mainly due to decrease in number of contracts. -Electric <Demand from customers under liberalization> -Comme
Slide 7: Generated and Received Power
Generated and Received Power 4 -Hydro Decreased by 1.0 TWh on year on year basis due to lower water flow (flow rate for 2012/2Q:93.7%, 2011/2Q:114.2%) -Nuclear N l D Decreased db 6 TWh due by 22.6 d tot suspension i off operations ti off all ll reactors t att Hamaoka H k Nuclear N l Power Station -T
Slide 8: Non-consolidated Statements of Income <1>
Non-consolidated Statements of Income <1> 5 (Billion yen, %) 2012/2Q 2011/2Q Change [Major factors for Change] (A) (B) (A-B) (A-B)/B Electricity sales revenues 1,122.1 1,037.5 84.6 8.2 - Increase in Fuel adjustment charge 䠖+84.1 Sold power to other electric utilities, and transmission 99.6 19.4 80.1
Slide 9: Non-consolidated Statements of Income <2>
Non-consolidated Statements of Income <2> 6 (Billion yen, %) 2012/2Q 2011/2Q Change [Major factors for Change] (A) (B) (A-B) (A-B)/B - Retirement benefit 䠖 -8.1 Salaries and 91.6 101.4 -9.8 9.8 -9.7 9.7 (Actual differences 䠖 -8.0) 8 0) employee benefits - Thermal 䠖+163.7 Fuel 610.2 447.6 162.5 36.3
Slide 10: Non-consolidated Statements of Income <3>
Non-consolidated Statements of Income <3> 7 (Billion yen, %) 2012/2Q 2011/2Q Change [Major factors for Change] (A) (B) (A-B) (A-B)/B Operating income (loss) 11.4 1.7 9.7 562.6 Other revenues 7.5 12.4 -4.8 -39.1 Interest expense 19.7 17.3 2.4 14.0 Other 2.4 7.7 -5.3 -68.2 p Other expenses 22.2 25.1 -
Slide 11: Consolidated Statements of Income
Consolidated Statements of Income 8 (Billion yen, %) 2012/2Q 2011/2Q Change (A) (B) (A-B) (A-B)/B Operating revenues 1,236.3 1,067.6 168.7 15.8 Electriccity busineess Operating expenses 1,221.6 1,060.8 160.8 15.2 Operating income (loss) 14.6 6.7 7.9 117.5 Operating revenues 99 7 99.7 91 5 91.5 81 8.
Slide 12: Segment Information
Segment Information 9 (Billion yen) 2012/2Q 2011/2Q Change (A) (B) (A-B) [Major factors for Change] Sales from external customers 1 236 3 1,236.3 1 067 6 1,067.6 168 7 168.7 Electricity Operating income (loss) 10.9 3.0 7.8 Sales from external customers 30.1 25.9 4.1 Chubu Incidental business 18.3 15
Slide 13: Consolidated Financial Standing
Consolidated Financial Standing 10 (Billion yen) 2012.9 2012.3 Change [Major factors for Change] (A) (B) (A-B) Assets 5,818.6 5,647.1 171.5 -Increase in cash and deposits -Increase in interest-bearing Liabilities 4,298.1 4,098.8 199.3 debt Net assets 1,520.4 1,548.3 -27.8 -Dividend payout (Billion y
Slide 14: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows 11 (Billion yen) 2012/2Q 2011/2Q Change [Major factors for Change] (A) (B) (A B) (A-B) - Increase in electricity sales Cash flows from operating revenues 70.0 12.6 57.3 activities - Decrease in income taxes payout Cash flows from investment -174.3 -130.6 -43.7 a
Slide 15: Summary of Forecast for FY 2012
Summary of Forecast for FY 2012 1212 13 (billion yen) - Consolidated C lid t d FY 2012 forecast FY 2012 forecast Change (Current) (Sep.4) from Sep.4 (A) (B) (A)-(B) Operating revenues 2,640.0 2,640.0 㻙 Operating income (loss) -45.0 -45.0 㻙 Ordinary income (loss) -80.0 -80.0 㻙 Net income (loss) -60.0
Slide 16: Non-consolidated Forecast for FY 2012 (compared to FY 2011 Results)
Non-consolidated Forecast for FY 2012 1213 (compared to FY 2011 Results) (Billion yen) FY 2012 FY 2011 Forecast Change Result [Principal factors affecting ordinary loss] (Current) (A) (B) (A)-(B) Operating Decrease in nuclear power output -26.0 2,480.0 2,295.1 approx. 185.0 revenues Decrease in pers
Slide 17: The Policy on Shareholder Return
The policy on Shareholder Return 14 - The Policy on Shareholder Return(announced on July 30, 2012) The Company will work to maintain stable dividends after taking account of financial condition and other factors, while continuously investing in building and operating p g facilities that are essentia
Slide 18: Management Situation
ϩ Management g Situation © 2012 Chubu Electric Power Co., Inc. All rights reserved.
Slide 19: Safety Measures at Hamaoka <1> Transition of Tsunami Countermeasures
Safety Measures at Hamaoka Nuclear Power Station <1> 15 Transition of the Tsunami Countermeasures 㻙 Transition of the Tsunami Countermeasures May 6 ,2011 The government issued "Request to Securely Implement Protective Measures Against Tsunami at Hamaoka Nuclear Power Station and to Shut Down its Rea
Slide 20: Safety Measures at Hamaoka <2> Outline of Tsunami Countermeasures
Safety Measures at Hamaoka Nuclear Power Station <2> 16 Outline of the Tsunami Countermeasures 㻙 Outline of the tsunami countermeasures at Hamaoka Nuclear Power Station (Announced in July 22, 2011) - Inundation prevention (1) the power station premises, including the construction of breakwaters (2)
Slide 21: Safety Measures at Hamaoka <3> Progress of Tsunami Countermeasures
Safety Measures at Hamaoka Nuclear Power Station <3> 171 Progress of the Tsunami Countermeasures -Whole process of Tsunami Countermeasures and Construction/Installation Cost We have been implementing the Tsunami countermeasures at Hamaoka Nuclear Power Station that we worked out in July 2011 with th
Slide 22: Safety Measures at Hamaoka <4> About a future action
Safety Measures at Hamaoka Nuclear Power Station <4> 18 About a future action 䕔 Report process of "Committee for Modeling a Nankai Trough Megaquake" FY 2011 FY 2012 ť March.31 "Committee for Modeling a Nankai Trough Megaquake" ų primary i reportt ų-The maximum height of tsunami in Omaezaki City:21m
Slide 23: Electricity Supply & Demand <1> Results for Summer 2012
Electricity Supply & Demand <1> Results for Summer 2012 19 ŠElectric Power Demand Result Owing to -the continuous efforts as last summer of many customers to conserve energy and adjust operating schedule ; -mild mild summer in 2012 in opposition to sever summer in 2010 Peak load had been continuousl
Slide 24: Electricity Supply & Demand <2> Outlook for Winter 2012/2013
Electricity Supply & Demand <2> 20 Outlook for Winter 2012/2013 ŠPeak loadᲢthree-day averageᲣ zIn consideration of several factors such as the effect of customers' energy conservation by 650MW, induced by the results in this summer, we estimate the peak load at 22,810MW. ŠSupply capacity zWith expec
Slide 25: Outlook for Fuel Procurement
Outlook for Fuel Procurement 21 ŠOutlook for fuel procurement z For FY2012, it is estimated that approximately 13 million tons of LNG should be procured in FY2012 nearly FY2012, l th the same as iin FY2011 FY2011, although lth h thi this amountt varies i ddepending di on severall ffactors t such as
Slide 26: Fund Raising
Fund Raising 22 - Progress P off fund f d raising i i ini FY 2012 -We plan to raise approximately 600 billion yen in long-term funding in FY 2012. 㻙 We are confident that we can raise approximately 450 billion yen at the moment. approx. ᲢBillion yenᲣ 150.0 bond :20.0 billion yen DBJ (Finished 100 0
Slide 27: Reference Data
Ϫ Reference Data Progress in Tsunami Countermeasures 䞉䞉䞉䞉䞉䞉䞉䞉 23 Overseas Business Deployment 䞉䞉䞉䞉䞉䞉䞉䞉 38 S Seawater iinflow fl viai damaged d d tubes b ini the h main i 䞉䞉䞉䞉䞉䞉䞉䞉 24 S l Strategy Sales S 䞉䞉䞉䞉䞉䞉䞉䞉 39 condenser for Hamaoka Reactor No.5 Electricity Business Environment <1> 䞉䞉䞉䞉䞉䞉䞉䞉 40 D
Slide 28: Progress in Tsunami Countermeasures
Progress in Tsunami Countermeasures 23 Inundation Prevention <1> - Installation of underground wall, a foundation of the breakwater, is finished and floor slabs and vertical walls that consist of the wall section for the breakwater are being installed. - Of 109 points, installation of vertical walls
Slide 29: Seawater inflow via damaged tubes in the main condenser for Hamaoka Reactor No.5
Seawater inflow via damaged tubes in the main condenser for Hamaoka Reactor No.5 24 Fact - On May 14, 2011, when preparing for cold shutdown after reactor No. 5 was suspended, a portion of the tubes in the main condenser,, through g which seawater flowed to cool steam,, was damaged. g 400 tons of se
Slide 30: Development of LNG Thermal Power Plants with Enhanced Efficiency
Development of LNG Thermal Power Plants 㻝㻡 with Enhanced Efficiency 25 - Outline of development of LNG thermal power plants with enhanced efficiency 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (FY) 䕰Jul.-05: construction started Shin-Nagoya Group No.8 1,600MW 䕦Apr - Oct.-08
Slide 31: Reinforcement Plan for LNG Handling Facilities
Reinforcement Plan for LNG Handling Facilities 㻝㻢 26 - Supporting S ti stable t bl yett fl flexible ibl LNG procurementt 䐟Additional LNG tanks & reinforcement to LNG 䐠 䐠Installation of ggas receiving dock Shin-Nagoya pipeline across Ise Bay 䐢Installation of ( for Toho Gas Co.) Kawagoe Mie-Shiga pipe
Slide 32: Actions at Thermal Plants against Earthquakes <1>
Actions at Thermal Plants against Earthquakes <1> 䠍27 - In I accordance d with ith El Electricity t i it Business B i Acts, A t thermal th l plants l t are designed d i d to t contain t i damage d within ithi the th plant l t premises and ensure public safety, even if a massive earthquake causes dam
Slide 33: Actions at Thermal Plants against Earthquakes <2>
Actions at Thermal Plants against Earthquakes <2> 䠍28 - Measures been taken at thermal plants Safety measures Improvement of aseismic resistance Even if a large earthquake We are further reinforcing the earthquake resistance of our base power supply systems and fuel causes damage to main infrastruct
Slide 34: Outlook of Electricity Supply & Demand in Winter (February 2013) in Japan
Outlook of Electricity Supply & Demand in Winter (February 2013) in Japan 29 (GW) West Japan Hokkaido 100 9.1% 10% 8.3% 80 8% 6.6% 7.7% 60 5.7% 6% 4.1% 40 3.1% % 4% (1.57) (1.05) 20 (0.85) 2% (0.43) (0.47) (0.47) 0 0% (GW) East Japan Chubu Kansai Hokuriku Chugoku Shikoku Kyushu West p Japan 80 9.4%
Slide 35: Strengthen Mutual Support among Power Companies
Strengthen Mutual Support among Power Companies 䠍30 䕔The operating p g capacity p y of the connecting g line between regions g 䊻 1,300MW 60Hz 50Hz 䊹 1,600MW 㻴㼛㼗㼡㼞㼕㼗㼡 䊻 3,800MW 䚷䊻 2,500MW 䊹 2,700MW 䊻 300MW 䚷 䊹 500MW 㻯㼔㼡㼓㼛㼗㼡 䊹 300MW 䠢䠟 㻷㼥㼡㼟㼔㼡 㻷 㻷㼍㼚㼟㼍㼕 㼕 䊻 2,500MW 䊻 1,200MW 䊹 1,840MW 䊹 1,200MW 㻯㼔㼡㼎㼡 㼀㼛
Slide 36: Efforts toward Promotion of Renewable Energy <1>
Efforts toward Promotion of Renewable Energy <1> 31 䕔 Governmental efforts toward promotion of Renewable Energy The Excess Electricity Purchasing Feed-in Tariff Scheme for Scheme for Photovoltaic Power Renewable Energy (Implementation from November 1,2009) 㸦Implementation from July 1,2012㸧 * -Electr
Slide 37: Efforts toward Promotion of Renewable Energy <2>
Efforts toward Promotion of Renewable Energy <2> 㻝㻡 32 - Details for promotion of renewable energy *1 Output CO2 reduction Detailed plans Operation commences (MW) (t-CO2 / year) Mega Solar Iida 1 400 FY 2010 Chubu Electric Mega Solar Taketoyo 7.5 3,400 FY 2011 Mega Solar Shimizu 8 4,000 FY 2014 (Pla
Slide 38: Composition of Power Sources and Electric Energy Output
Composition of Power Sources and Electric Energy Output 33 - Composition of Power Sources (GW) 0 10 20 30 40 2010 12% 13% 41% 15% 19% 2011 (FY) 12% 13% 41% 15% 19% Nuclear Coal LNG Oil etc. Hydro *Renewable energy is less than 1%. - Composition of Electric Energy Output ( h) (TWh) 0 40 80 120 160 20
Slide 39: Fuel Procurement (FY 2011)
Fuel Procurement (FY 2011) 34 Yemen 1.4 Peru 1.1 (%) Malaysia 2.3 Others 0.9 Russia 4.4 Africa 5.4 Australia 8.3 Indonesea LNG Indonesea Coal Australia 8.4 Qatar Q t (13.123 mil. t) 63.5 41.6 (9.689 mil. t) 54.0 Russia 8.7 Others 5.1 Malaysia Kazakhstan 12.0 16.7 Crude Gabon Indonesea Uranium Austra
Slide 40: LNG Contracts
LNG Contracts 35 - Principal LNG Contracts (1 000 t/year) (1,000 t/ ) Contract volume Projects / <delivery> Period of contract (approximate figure) Qatar / <Ex-ship> 1997 - 2021 (approx.25 years) 4,000 Australia (extension) / <Ex-ship> 2009 - 2016 (approx.7 years) 500 Contraccts ng Existin Australia
Slide 41: Advancement of Coal Trading
Advancement of Coal Trading 36 - Coal tradingg business -Chubu Electric and Electricite de France’s subsidiary EDFT each established 100% subsidiaries in Japan and started fuel trading business under partnership agreement in FY2008. -Effective in April, 2010, Chubu Energy Trading controls Chubu Ecle
Slide 42: Acquisition of Interests in Energy Resources
Acquisition of Interests in Energy Resources 37 P j t Project O tli off project Outline j t and d interest i t t P ti i ti and Participation d its it purposes - Major interest holders - Participation (since Nov. 2009) Gorgon 䚷Shevron, Shell, Exxon Mobil, etc. 䚷Interest holding ratio 0.417% (Australi
Slide 43: Overseas Business Deployment
Overseas Business Deployment 38 - Outline of overseas business Investment amount Output based on Chubu's stake* (approximate) At the end of FY 2011 Cumulative total 90 billion yen Cumulative total 3,240 MW * represents Chubu's stake in total output of whole projects it participates - Projects in par
Slide 44: Sales Strategy
Sales Strategy 39㻢 -Proposals Proposals for household customers Proposals offering households the versatility available with electricity, including solar power, electric vehicles, etc., in addition to heat pump equipment such as the EcoCute, which offers a high level of gy savings energy g - Proposa
Slide 45: Electricity Business Environment <1>
Electricity Business Environment <1> 40 -Timetable Timetable for Establishment of Energy Policy Theme FY 2011 FY 2012 (relevant organizations) 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 Electricity system reform 䕰Dec 27 䕰Dec. 䕰Jul. 䕰J l 13 El t i it system Electricity t 䕰year 䕰year- end Electricity (The Ta
Slide 46: Electricity Business Environment <2>
Electricity Business Environment <2> 41 -Innovative strategy for energy and environment including much contradictions. 㻙The Japanese government decided to allow some companies to resume construction of new nuclear power stations, while it announced its intention to stop using nuclear power by 2030s.
Slide 47: The Task Force on the Reform of Electric Power Systems
The Task Force on the Reform of Electric Power Systems 䠍42 䕔 Major issues for discussion on the reform of electric power systems ( (announced d on D December b 2727, 2011䠅 <1> -promoting installation of smart meters and related interfaces, enhancing the New demand restriction supply-demand adjustmen
Slide 48: The Act to Establish a Nuclear Damage Compensation Facilitation Corporation
The Act to Establish a Nuclear Damage Compensation Facilitation Corporation 43 - Overview of the Act to Establish a Nuclear Damage g Compensation p Facilitation Corporation p - Given the possibility of large damage compensation requirements, nuclear power operators will establish the following syste
Slide 49: Outline of advisory conference concerning review of electricity rates system
Outline of advisory conference concerning review of electricity rates system and its operation 44 -Since problems with the current electricity rate system and its operation were pointed out after the Great East Japan Earthquake, an expert panel under the auspices of the Minister of Economy, Trade an
Slide 50: Smart Meter
Smart Meter 㻝㻡 45 -Progress Progress of argument regarding the introduction of smart meters “Tentative plan for the energy supply-demand “Basic Energy Plan” decided at the cabinet balance ” decided at the cabnet meeting (Aug meeting (June 18, 18 2010) 5 2011) 5, - Aim to introduce smart meters to ba
Slide 51: Fuel cost adjustment system and thermal fuel cost
Fuel cost adjustment system and thermal fuel cost 46 <Diagram Di off impacts i t off thermal th l ffuell costt on th the F Fuell C Costt Adj Adjustment t tSSystem> t Price Monthly fluctuations in fuel prices are reflected in unit prices of electricity as prescribed by the Fuel Cost Adjustment System
Slide 52: Revision of Environmental tax rate (Petroleum and Coal tax)
Revision of Environmental tax rate (Petroleum and Coal tax) 47 - Tax Ta Rate The additional tax (298 yen per one ton of carbon dioxide emission) is levied on all fossil fuels according to the emission of carbon dioxide. S i l provisions Special ii on taxation t ti for f measures to t preventt global
Slide 53: Retirement Benefit Cost (Non-consolidated)
Retirement Benefit Cost (Non-consolidated) 48 䕔Actuarial Differences (billion yen䠅䠅 Amount of amortization Change Recorded amounts Recorded To be recorded 䠄䕧:Excess year FY2010(A) as extraordinary FY2011(B) FY2012(C) (B)䠉(A) (C)䠉(B) amounts reserved䠅 loss* FY2007 63䠊8 21䠊3 䠉 䠉 䠉 䕧21䠊3 䠉 FY2008 52䠊3
Slide 54: Income Results by Division
Income Results by Division 49 䕔FY2011 Income results by division (Billion yen) Division under Division under Total other division Item regulation liberalization (11)= (10) (8) (9) (8)+(9)+(10) Electricity business revenues (1) 947.3 1,247.5 7.7 2,202.6 Electricity business expenses (2) 946.7 1,315.5
Slide 55: Free Cash Flow (Non-consolidated)
Free Cash Flow (Non-consolidated) 50 (billion yen) 500 Free cash flow 426.0 400 376 7 376.7 Subtraction of capital expenditure from depreciation 300 276.8 229.0 237.4 191.2 189.4 200 142.8 142.6 90.1 94.3 100 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (FY) -100 100 -95.4 -200 -300
Slide 56: Shareholders' Equity Ratio, Debt - Equity Ratio
Shareholders’ Equity Ratio, Debt - Equity Ratio 51 - Shareholders’ equity ratio - Debt - equity ratio 䠄x䠅 35% 5 ಶู 㐃⤖ ಶู 㐃⤖ 30% 4 25% FY2010 31.1䠂 FY2011 20% 䠄consolidated䠅 3 1.7䠄consolidated䠅 FY2011 15% 26.8䠂 2 䠄consolidated䠅 10% FY2000 FY2000 1 4.0䠄consolidated䠅 5% 17.9䠂 䠄consolidated䠅 FY2010 1.5䠄
Slide 57: Disclaimer
DISCLAIMER This presentation Thi t ti contains t i assumptions ti andd forward-looking f d l ki statements t t t with ith respect to the financial conditions, and forecasts of the company, which are based on information currently available. These assumptions involve certain risks and uncertainties,
Chubu Electric Power Company — H1 FY2012 Earnings Presentation on 6ix