Chubu Electric Power Company,incorporated · TSE:9502

Chubu Electric Power Company,incorporated — Q1 FY2013 Earnings Presentation

45 slides from Chubu Electric Power Company,incorporated's earnings presentation, August 2013

  1. Slide 1: Presentation Materials for Investors, 1st Quarter FY 2013

    Presentation Materials for In Investors estors 1st Quarter FY 2013 August 2013 August, Note: The Company's p y fiscal year y (FY) ( ) is from April p 1 to March 31of the following g yyear. FY2013 represents the fiscal year begun in April 1, 2013, and ending in March 31, 2014. 1st Quarter (1Q) repres

  2. Slide 2: Table of Contents

    Table of Contents I Outline of Financial Results for Three-Months Ended June 30, 2013 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 Volume, Generated and Received Power 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 3 Summary of Forecast for FY 2013 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 4 Non-conso

  3. Slide 3: Outline of Financial Results for Three-Months Ended June 30, 2013

    I Outline of Financial Results for Three-Months Ended June 30,, 2013 © 2013 Chubu Electric Power Co., Inc. All rights reserved.

  4. Slide 4: Summary of Financial Results <1>

    Summary of Financial Results <1> 㻥1 -Operating O ti revenues decreased d d ffor th the first fi t time ti in i three th years after ft 1Q FY2010. FY2010 -We sustained an operating loss, ordinary loss and net loss for two consecutive years. [Consolidated] (Billion yen,%) 2013/1Q 2012/1Q Change (A) (B

  5. Slide 5: Summary of Financial Results <2>

    Summary of Financial Results <2> 㻥 2 < year-on-year comparison i factors f t for f change h iin consolidated lid t d ordinary di lloss > - A decrease in electricity sales volume -5.4 billion yen (with subtraction of fuel cost) - An A iincrease iin fuel f price i -24.5 24 billion i i yen - Others (A

  6. Slide 6: Electricity Sales Volume, Generated and Received Power

    Electricity Sales Volume, Generated and Received Power 3 - Electrisity Sales Volume (TWh %) 2013/1Q 2012/1Q Change (A) (B) (A-B) (A-B)/B Demand from Electric lighting 7.6 7.9 (0.3) (4.0) customers under Electric power 1.3 1.4 (0.1) (6.8) regulation Subtotal 8.9 9.3 (0.4) (4.4) Demand from Commercial

  7. Slide 7: Summary of Forecast for FY 2013

    Summary of Forecast for FY 2013 4 1213 [Principal factors affecting ordinary loss] (billion yen) - Consolidated FY 2013 forecast FY 2013 forecast Change (Current) (Apr.26) Emergency measures for management efficiency + 10.0 (A) (B) (A)-(B) (Maintenance and overhead expenses) Operating revenues 2,720

  8. Slide 8: Non-consolidated Forecast for FY 2013 (compared to FY 2012)

    Non-consolidated Forecast for FY 2013 125 (compared to FY 2012) (Billion yen) [Principal factors affecting ordinary loss] FY 2013 FY 2012 A decrease in electricity sales volume Change - 17.0 Forecast Result (with subtraction of fuel cost) (A) (B) (A)-(B) An increase of fuel price (After taking fuel

  9. Slide 9: The Policy on Shareholder Return

    The Policy on Shareholder Return 6 - Dividends for the Fiscal Year 2013 The Company has not yet decided forecast dividends for the fiscal year 2013. Dividends per Share (yen) Interim Year-end Total FY 2013 䇷 䇷 䇷 (Forecast) FY 2012 25 25 50 - The Policy on Shareholder Return(announced on July 30, 201

  10. Slide 10: Management Situation

    Management g Situation © 2013 Chubu Electric Power Co., Inc. All rights reserved.

  11. Slide 11: Safety Measures at Hamaoka Nuclear Power Station <1>: Progress in the Safety Measures

    Safety Measures at Hamaoka Nuclear Power Station<1>: Progress g in the Safety y Measures 7 㻙Our voluntary efforts based on the accident at the Fukushima No. 1 nuclear power plant 㻙Tsunami countermeasures(aiming to complete by the end of FY 2014) - Flood Prevention Measures (1) 㻦Prevention of flood w

  12. Slide 12: Safety Measures at Hamaoka Nuclear Power Station <2>: Ground Motion and Earthquake Countermeasures

    Safety Measures at Hamaoka Nuclear Power Station <2>: Evaluation of Effects of Ground Motion and 8 Status of review of Earthquake Countermeasures - Evaluation of ground motion - The ground motion based on the Cabinet Office model is the same as the present seismic resistance (around 1,000 gals). - T

  13. Slide 13: Outlook of Electricity Supply & Demand for Summer FY 2013

    Outlook of Electricity Supply & Demand for Summer FY 2013 9 (generating end) ŠPeak load (three-day average) We estimated the peak load at 25,040MW with assumption of the effect of customers' energy conservation byy 1,090MW , in this coming g summer. ŠSupply capacity By reflecting the start-up of Joe

  14. Slide 14: Outlook for Fuel Procurement in FY2013

    Outlook for Fuel Procurement in FY2013 10 - Outlook for fuel procurement (LNG) - For FY2013, assuming we need the amount of the same level as in FY2011 and FY2012, although this amount varies depending on supply-demand situation, we have already started negotiation with LNG sellers for additional LN

  15. Slide 15: Fund Raising

    Fund Raising 11 - Progress of fund raising in FY 2013 - We plan to raise approximately 300 billion yen in long-term funding in FY 2013. - We have raised approximately 130 billion yen by the end of the first quarter (end of June 2013). (Billion yen) en) others 156 billion yen (Fund to be raised) bond

  16. Slide 16: Efforts toward Promotion of Management Efficiency in FY2013

    Efforts toward Promotion of Management Efficiency in FY2013 㻝㻜12 - Efforts toward Promotion of Management Efficiency in FY2013 (change from previously published value) Ტbillion yenᲣ Item FY2013 Contents Capital investments -To review the timing, scope and method of construction works approx.10.0 red

  17. Slide 17: Reference Data

    Reference Data Movement of Nuclear Regulation Authority <1>: Outline of Thermal Power Plants <1>: Development of LNG Thermal 䞉䞉䞉䞉䞉䞉 13 䞉䞉䞉䞉䞉䞉 24 "the New Regulatory Standards" Power Plants with Enhanced Efficiency Movement of Nuclear Regulation Authority <2>:Method Thermal Power Plants <2>: Reinforc

  18. Slide 18: Movement of Nuclear Regulation Authority <1>: Outline of the New Regulatory Standards

    Movement of Nuclear Regulation Authority <1>: 13 Outline of "the New Regulatory g y Standards" Compared to the former safety standards, the new regulatory standards have been strengthen the standards to prevent a severe accident, and newly added the standards to cope with a severe accident or a terr

  19. Slide 19: Movement of Nuclear Regulation Authority <2>: Method for Conducting Review and Inspection

    Movement of Nuclear Regulation Authority <2>: Method for Conducting Review and Inspection After Enforcement of 14 the New Regulatory Standards (Image) - In a normal review, reviews of the permission of installment/change, the approval of construction plans and the approval of safety regulations are

  20. Slide 20: Movement of Nuclear Regulation Authority <3>: Influence of 40-years regulation

    Movement of Nuclear Regulation Authority <3>: y Influence of 40-years regulation g 15 ŠInfluence on Hamaoka Nuclear Power Station Commencement of Age of reactors at the end Output (MW) commercial operation of July 2013 Unit No.3 1,100 August 28 1987 25 years Unit No.4 1,137 September 3 1993 19 years

  21. Slide 21: Hamaoka Nuclear Power Station <1>: Progress in the Safety Measures

    Hamaoka Nuclear Power Station <1>: Progress in the Safety Measures 16 㻙 Tsunami countermeasures FY2011 FY2012 FY2013 FY2014 Principal measures Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar 䕰Started on November 11th 䕰 1

  22. Slide 22: Hamaoka Nuclear Power Station <2>: Installation of a filter vent equipment

    Hamaoka Nuclear Power Station <2>: 17 10 Installation of a filter vent equipment Measures to prevent a large-scale discharge of radioactive materials 㻙Venting containment vessels is indispensable for prevention of their damage. We will install a filter vent equipment q p to minimize discharge g of p

  23. Slide 23: Hamaoka Nuclear Power Station <3>: Seawater inflow via damaged condenser tubes

    Hamaoka Nuclear Power Station <3>: 18 Seawater inflow via damaged tubes in the main condenser for Hamaoka Reactor No.5 Fact - On May 14, 2011, when preparing for cold shutdown after reactor No. 5 was suspended, a portion of the tubes in the main g which seawater flowed to cool steam, was damaged. co

  24. Slide 24: Hamaoka Nuclear Power Station <4>: Reinforcement of disaster prevention measures

    Hamaoka Nuclear Power Station <4>: 19 18 Reinforcement of disaster prevention measures of Hamaoka Nuclear Power Station - Review and Strengthening of Nuclear Disaster Prevention System -In addition to construction of tsunami protection wall and other tangible measures, we will strengthen its disaste

  25. Slide 25: Schedule of the Electric Power System Reform

    Schedule of the Electric Power System Reform 20 - Ordinary 2013 Diet session The bill for the Act for Partial Revision of the Electricity Business Act was submitted to the Diet session, but the bill was abandoned - Extraordinary Diet session in the fall of 2013 The h Minister i i off Economy, Traded

  26. Slide 26: Electricity Supply & Demand <1>: Outlook for Summer (August 2013) in Japan

    Electricity Supply & Demand <1> Outlook of Electricity Supply and Demand for Summer (August 2013) in Japan 21 29 (GW) West Japan Hokkaido 100 12.0% 10.5% 80 9.0% 10.0% 8.0% 60 5.9% 6.0% 5.2% 6.0% 40 3 0% 3.0% 3 1% 3.1% 4 0% 4.0% 20 (2.32) (1.19) (0.33) 2.0% (0.87) (0.28) (0.49) 0 0.0% Chubu Kansai H

  27. Slide 27: Electricity Supply & Demand <2>: Strengthen Mutual Support among power companies

    Electricity Supply & Demand <2>: Strengthen Mutual 䠍 Support among power companies 22 䕔 Reinforcement of the FC (Frequency Converter) (Outline of the master plan interim report regarding strengthening inter-regional inter regional connection, connection etc. etc ) - Reinforce 900MW FC capacity (tota

  28. Slide 28: Electricity Supply & Demand <3>: Composition of Power Sources and Electric Energy Output

    Electricity Supply & Demand <3>: Composition of Power Sources and Electric Energy Output 23 - Composition of Power Sources (GW) 0 10 20 30 40 FY2011 12% 13% 41% 15% 19% 0% FY2012 11% 12% 43% 15% 19% 0% Nuclear Coal LNG Oil etc. Hydro Renewable New Energy - Composition of Electric Energy Output (TWh)

  29. Slide 29: Thermal Power Plants <1>: Development of LNG Thermal Power Plants with Enhanced Efficiency

    Thermal Power Plants <1>: Development of LNG Thermal 㻝㻡 Power Plants with Enhanced Efficiency 24 - Outline of development of LNG thermal power plants with enhanced efficiency 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (FY) 䕰Mar.-07: construction started 䕰Jul.-12: commercia

  30. Slide 30: Thermal Power Plants <2>: Reinforcement Plan for LNG Handling Facilities

    Thermal Power Plants <2>: Reinforcement Plan for LNG 㻝㻢 Handlingg Facilities 25 - Supporting stable and flexible LNG procurement 䐟Additional LNG tanks & reinforcement to LNG 䐠 s o oof ggass 䐠Installation receiving dock Shin-Nagoya pipeline across Ise Bay 䐢Installation of ( for Toho Gas Co.) Mie-Shig

  31. Slide 31: Thermal Power Plants <3>: Actions at Thermal Power Plants against Megaquakes

    Thermal Power Plants <3>: Actions at Thermal Power 䠍 Plants etc. against Megaquakes 26 ŠThermal power plants To further improve the reliability of all power stations from the standpoint of public safety, the Company will implement measures necessary to ensure We will reinforce the earthquake resista

  32. Slide 32: Fuel Procurement<1>: LNG Contracts

    Fuel Procurement<1>: LNG Contracts 27 - Principal LNG Contracts (1,000 (1 000 t/ t/year)) Contract volume Projects / <delivery> Period of contract (approximate figure) Qatar1 / <Ex-ship> 1997 - 2021 (approx.25 years) 4,000 Australia (extension) / <Ex-ship> Ex ship 2009 - 2019 (approx.10 years) 500 A

  33. Slide 33: Fuel Procurement<2>: Advancement of Coal Trading

    28 Fuel Procurement<2>: Advancement of Coal Trading 36 - Coal trading g 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 Tr

  34. Slide 34: Fuel Procurement<3>: Acquisition of Interests in Energy Resources

    Fuel Procurement<3> Acquisition of Interests in Energy Resources 29 Cordova Embayment -Acquisition of upstream interests, etc.? Integra (Shale gas) (Coal) Ichthys Project output capacity: Project output capacity: (LNG) Approx 3.3 million ton/year Approx 3.5 million ton/year in LNG) Interest holding

  35. Slide 35: Fuel Procurement<4>: Results of FY2012

    Fuel Procurement<4> Results of FY2012 30 Russia Others 3.4 2.8 䠄䠂䠅 Russia 5.4 Asia 8.3 Australia LNG Coal 10 6 10.6 Australia (14.279mil.t) 45.2 Indonesea Qatar Ტ10.316mil.tᲣ 52.0 Africa 60.8 .5 11.5 Malaysia 4.1 Gabon 15.3 Crude oil Indonesea Ტ1,062,000klᲣ 44.2 Vietnam 36 4 36.4 Figures in parenthe

  36. Slide 36: Renewable Energy <1>: Feed-in Tariff Scheme

    Renewable Energy <1>䠖Feed-in Tariff Scheme 31 䕔 Governmental efforts toward promotion of Renewable Energy Feed-in Tariff Scheme for Renewable Energy ᲢImplementation from July 1,2012Უ What shall -Electricity generated from Solar PV*, wind power, hydraulic power, geothermal and biomass be purchased *E

  37. Slide 37: Renewable Energy <2>: Our efforts toward Promotion of Hydro, Wind and Solar

    32 Renewable Energy <2>: Our efforts toward Promotion 㻝㻡 - Details for promotion of renewable energy Output Detailed plans Operation commences ((MW)) Mega Solar Iida 1 FY 2010 nd Solar Chubu Electric Mega Solar Taketoyo 7.5 FY 2011 Mega Solar Shimizu 8 FY 2014 (Plan) ((Phase1)) FY 2009 Win Ch b El C

  38. Slide 38: Sales Strategy

    Sales Strategy 33 㻢 - Offers Off off energy solution l ti service i To respond to diversified and sophisticated customers’ needs, Chubu Electric and its group companies combine forces to offer solution service using advantages of both electricity and gas. - Offers of gas, LNG and on-site energy serv

  39. Slide 39: Overseas Business Deployment

    Overseas Business Deployment 34 - Outline of overseas business Investment amount Output based on Chubu's stake* (approximate) At the end of FY 2012 Cumulative total 100 billion yen Cumulative total 3,260 MW * represents t Chubu's Ch b ' stake t k in i total t t l output t t off whole h l projects j

  40. Slide 40: Smart Meter

    Smart Meter 35 㻝㻡 - Progress of argument regarding the introduction of smart meters “Basic Energy Plan” decided at the cabinet “Tentative plan for the energy supply-demand balance ” meeting (June 18, 2010) decided at the cabnet meeting (Aug 5, 2011) - Aim to introduce smart meters to basically all -

  41. Slide 41: Financial Result<1>: Fuel cost adjustment system and thermal fuel cost

    Financial Result<1> 36 Fuel cost adjustment system and thermal fuel cost <Diagram of impacts of thermal fuel cost on the Fuel Cost Adjustment System> Price Monthlyy fluctuations in fuel p prices are reflected in unit prices of electricity as prescribed by the Fuel Cost Adjustment System. Fuel price

  42. Slide 42: Financial Result<2>: Retirement Benefit Cost (Non-consolidated)

    Financial Result<2> 37 Retirement Benefit Cost (Non-consolidated) (Non consolidated) 䕔Actuarial Differences (billion yen䠅 Recorded amounts Amount of amortization Change Recorded year ( ):Excess amounts FY2012(A) FY2013(B) (B)䠉(A) reserved FY2009 ((29. 3)) ((8. 5)) 䠉 8䠊 5 FY2010 12䠊2 3䠊4 3䠊 4 䠉 FY201

  43. Slide 43: Financial Results <3>: Cash Flow (Non-consolidated)

    Financial Results <3> Cash Flow (Non-consolidated) 38 (billion yen) 800.0 փಅCF Cash Flows from Operating Activities 608 9 608.9 ৲᝻CF Cash Flows from Investing Activities 600.0 563.4 548.6 556.9 523.6 FCF 522.2 402.6 424.1 420.1 400 0 400.0 426.0 333.8 376.7 270.0 214.4 200.0 237.4 276.8 229.0 146.0

  44. Slide 44: Financial Results <4>: Shareholders' Equity Ratio, Debt-Equity Ratio

    Financial Results <4> Shareholders’ Equity Ratio, 39 Debt - Equity Ratio - Shareholders’ equity ratio - Debt - equity ratio 䠄Times䠅 35% 5 Non-Consolidated ̾К Non-Consolidated ̾К Consolidated ᡲኽ Consolidated ᡲኽ 30% 4 25% FY2012 2.4Times 3 (Non-Consolidated) 20% FY2012 22.8Ჟ ᲢNon-ConsolidatedᲣ 15% FY2

  45. Slide 45: 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 — Q1 FY2013 Earnings Presentation on 6ix