Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — Q2 FY2020 Earnings Presentation
26 slides from Tokyo Gas's earnings presentation, Oct 29, 2020
Slide 1: FY2020 2Q Financial Results
Lf FY2020 2Q Financial Results ended September, 2020 October 29, 2020 [Revised on November 5,2020] "E TOKYO GAS TSE:9531
Slide 2: FY2020 Consolidated Financial Results
o1 FY2020 Consolidated Financial Results ended September, 2020 "ETOKYOGAS
Slide 3: Sales decreased but profits increased in 2Q FY2020
Sales decreased but profits increased in 2Q FY2020. Net sales were ¥828.0 billion, a decrease of ¥82.4 billion year on year. This was mainly attributable to a drop in the city gas sales volume of the gas segment due to the impact of the new coronavirus (COVID-19) and a decrease in the city gas unit
Slide 4: City gas sales volume in 2Q FY2020
The city gas sales volume in 2Q FY2020 was 5,596 million m3, down 17.0% year on year. This was mainly attributable to a 771 million m3 decrease in sales volume to power generation customers due to the expiry of a contract with a large customer and a drop in operation owing to the impact of COVID-19.
Slide 5: Total electricity sales volumes in 2Q
Total electricity sales volumes in 2Q was 11,801 million kWh, up 29.6% year on year. Retail electricity sales increased 28.4% year on year to 4,885 million kWh, due to an increase in the number of customers. Wholesale and other electricity sales volumes also increased 30.4% to 6,917 million kWh on t
Slide 6: Net sales and segment profit by segment
Slide 6 shows net sales by segment and segment profit, which is operating profit plus equity income/loss of subsidiaries, and changes thereof. In segment profit, a ¥8.2 billion increase in the electric power segment pushed up the overall profit. 6
Slide 7: Factors for segment profit changes
The ¥0.7 billion profit increase of the gas segment constitutes a ¥3.8 billion drop in the gross margin of city gas and a ¥3.0 billion decrease in LNG sales offset by a ¥7.5 billion cut in fixed costs for city gas. The profit of the electric power segment increased by ¥8.2 billion, reflecting an inc
Slide 8: FY2020 forecast overview
In the 1Q results, we disclosed segment profit forecasts only since we deemed at the time that it was difficult to make a rational estimate of the impact of COVID-19. In 2Q, we have made a forecast for all items, from net sales to profit attributable to owners of parent, as we deemed that the impact
Slide 9: Revised FY2020 consolidated forecast
We now forecast a segment profit of ¥87.9 billion, which is ¥12.9 billion more than the segment profit forecast that we presented in 1Q. This mainly represents an increase in gross margin, etc. from increases in city gas and electric power sales volumes. Compared to the previous year‘s results, we e
Slide 10: Forecast of gas sales volume
Our forecast of gas sales volume is 12,570 million m3, down 9.3% year on year. This mainly reflects an expected ¥1,317 million m3 decrease in sales to non-residential customers owing to the expiry of a contract with a large power generation customer and a decrease in operation due to the impact of C
Slide 11: Forecast of electricity sales volume
Our forecast of electricity sales volume is 24,146 million kWh, up 17.2% year on year. The number of retail customers at the end of September reached 2,523 thousand. 11
Slide 12: FY2020 forecasts by business segment
This slide shows our FY2020 net sales and profit forecasts by business segment and changes from the previous forecast. As mentioned earlier, our segment profit forecast has been revised upward by ¥12.9 billion. The main reason to this is the ¥7.7 billion increase in the gas segment. 12
Slide 13: Changes in segment forecasts from previous forecast
In the gas segment, the forecast was upgraded by ¥7.7 billion from the previous forecast mainly due to an increase in gross margin following a rise in the city gas sales volume. In the electric power segment, we raised our forecast by ¥2.0 billion as the increase in the time customers spent at home
Slide 14: Factors for changes from FY2019
As reference information, here are our forecasts as of 2Q in terms of the same items as in “Factors for Changes from FY2019” that we presented in 1Q. Looking at the changes by item, the forecast for “sliding time lag effect, etc.” has been decreased while the forecasts for “other profit increase and
Slide 15: Segment forecasts compared to previous year
This slide shows net sales forecasts by segment and segment profit forecasts as compared to the results of the previous year. 15
Slide 16: Segment forecast changes from previous year
In the gas segment, our forecast is -¥6.2 billion due to a drop in sales volumes due to the impact of COVID-19 and the generation of supply and demand adjustment expenses. Our forecast for the electric power segment is +¥5.5 billion, owing in part to a rise in sales volume due to an increase in the
Slide 17: Use of cash flow in FY2020
This slide details the use of cash flow in FY2020. We expect our use of cash to substantially exceed the previous year’s performance due to capital expenditure and investments and financing that were decided before 2Q. 17
Slide 18: Key indicators on a consolidated basis
This slide shows key indicators on a consolidated basis. 18
Slide 19: Reference materials
The following reference materials include a table on the sensitivity to the economic framework assumption, plus the trend of crude oil prices and the exchange rate, a list of major year-to-date press releases, a list of major overseas investment projects, and the number of switches to other electric
Slide 20: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate
Gas Gross Margin Sensitivity to ie in Crude Oil Price and Exch Impact of rising JCC by $1/bbl Impact on earnings (Unit: billion yen) 3Q 4Q Full year 3Q -0.1 1.1 -1.2 Period 4Q — -0.1 -0.1 Full year -0.1 -1.2 -1.3 Impact of depreciation by ¥1/$ Impact on earnings (Unit: billion yen) 3Q 4Q Full year 3
Slide 21: Crude oil price - Exchange rate
Crude oil price - Exchange rate Crude oil price (Japan Crude Cocktail Prices) (s/bbl) 80 Exchange rate (Ws) 115.0 100.0 %, % "FTOKYOGAS 21
Slide 22: Key Topics in FY2020
Key Topics in FY2020 (Excerpted from Press Releases up to 29th Oct.) Electric (Including ES) * Launched free solar power system provision service “Zuttomo Solar x Toyota Home” (Apr 20) Began verification + Tokyo Gas began handling the firs effective renewable energy electriaty using Feed-in Tariff S
Slide 23: Key Topics in FY2020
Key Topics in FY2020 (Excerpted from Press Releases up to 29th Oct.) 23 ESG ~ Tokyo Gas Group's interim Initiatives Based on the Emergency Decleration(Apr.7) Ale saci cen tats Ges est Aa aY on ert tnt 2000 CWDS irtier 0) pertaining to gas and ry bill payments in relation to the 2020 COVID-19 outbrea
Slide 24: Overseas Projects
Overseas Projects e G00 ° °° Area No Country Subject Main Business Participation year Barnett Upstream Shale gas 2013 Eagle Ford Upstream Shale gas 2016 East Texas Upstream Shale gas 2017 @ USA TGESAmerics Downstream Energy Service 2015 Birdsboro Power Plant Downstream Natural gas power 2017 North A
Slide 25: Trends in city gas/electricity switching
Trends in city gas/electricity switching(published data), Number of customers for city gas retail sales( Tokyo gas consolidated) Electricity switchers (based on applications) City gas switchers (based on applications) Monthty(1,000s) Cumulative(1,000s) Monthty(1,000s) Cumulative(1,0005) 500 20,000 2
Slide 26: Cautionary Statement regarding Forward-looking Statements
"F 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