Tokyo Gas Co., Ltd. · TSE:9531
Tokyo Gas — Q2 FY2021 Earnings Presentation
26 slides from Tokyo Gas's earnings presentation, Oct 28, 2021
Slide 1: FY2021 2Q Financial Results
FY2021 2Q Financial Results ended September, 2021 October 28, 2021 "E TOKYO GAS TSE:9531
Slide 2: FY2021 Consolidated Financial Results
o1 FY2021 Consolidated Financial Results ended September, 2021 "ETOKYOGAS
Slide 3: Both sales and profits increased in 2Q FY2021
Both sales and profits increased in 2Q FY2021. Net sales increased by ¥44.6 billion. This was mainly attributable to the fact that, in the overseas segment, a company engaged in upstream business in North America that became a consolidated subsidiary in 3Q FY2020 contributed to sales from the first
Slide 4: City gas sales volume in 2Q FY2021 increased 2.7%
The city gas sales volume in 2Q FY2021 increased 2.7%. Although sales volume to residential customers decreased 8.6% due to the temperature effect, such as high temperatures in April, sales volume to industrial customers increased 14.9%. This was mainly attributable to the acquisition of power gener
Slide 5: Total electricity sales volume in 2Q increased 12.2%
Total electricity sales volume in 2Q increased 12.2%. Despite a drop in sales volume due to changes in the accounting standard for revenue recognition, retail electricity sales increased 1.3% as a result of an increase in the number of customers. Wholesale and other electricity sales volumes increas
Slide 6: Net sales and segment profit by segment
This slide shows net sales by segment and segment profit, which is operating profit plus equity income/loss of subsidiaries, and changes thereof. Segment profit was down ¥3.9 billion. Although the ¥8.8 billion increase in the overseas segment boosted the overall profit, the total segment profit decr
Slide 7: Main factors in segment profit changes
The ¥13.4 billion drop in profit of the gas segment mainly reflected a drop in gross margin due to the greater sliding time lag effect caused by resource price fluctuation and a rise in fixed costs due to an increase in depreciation. In the electric power segment, profit decreased by ¥4.9 billion du
Slide 8: FY2021 Full Year Forecast
02 FY2021 Full Year Forecast "ETOKYOGAS
Slide 9: FY2021 full-year forecast: increase in sales and profit
For the FY2021 full-year, we are forecasting an increase in both sales and profit. The economic framework for October onward, which serves as a basis of our forecast, has been changed as follows: crude oil price has been revised from $65/barrel to $70/barrel. The foreign exchange rate is unchanged a
Slide 10: City gas sales volume forecast
We expect city gas sales volume to be 0.9% more than our previous forecast. The main factor for the increase in the expected increase in sales volume to industrial customers, such as due to a rise in operation at power generation customers. 10
Slide 11: Electricity sales volume forecast
This slide shows our electricity sales volume forecast. We expect electricity sales volume to be 2.2% less than our previous forecast, which is mainly attributable to a decrease in wholesale and other electricity sales volumes. 11
Slide 12: Segment sales and profit forecasts
This slide shows segment sales and profit forecasts and changes from the previous forecast. We expect segment profit to be ¥8.9 billion more than the previous forecast. 12
Slide 13: Main factors in segment profit forecast changes
I would like to explain the main factors of the changes in segment profit forecasts. We expect a ¥3.7 billion increase in the gas segment forecast compared to the previous forecast. This is mainly attributable to trading and other businesses other than city gas and LNG sales, which we expect to decr
Slide 14: Comparison with FY2020 results
This slide shows comparisons with FY2020 results and the main factors for the changes. We expect segment profit to increase ¥24.6 billion from FY2020. 14
Slide 15: Segment profit changes vs. FY2020
vs. F¥2020 Results © City Gas -¥25.2bn + Decrease in gross margin -¥17.7bn: Change in volume, etc. -8.3 (incl change due to temp effect I= +/- indicate contributions to profit. Gas . +2.3), sliding time lag effect-9.4 -¥7.9bn ‘Diet sales) +¥97.4bn: Change in volume, etc. -36.8, siding time lag effec
Slide 16: Ordinary profit change forecast by main factors
This slide illustrates the profit change forecasts for the main factors for change from the FY2020 ordinary profit. 16
Slide 17: Expected use of cash flow in FY2021
This slide details the expected use of cash flow in FY2021. 17
Slide 18: Key consolidated indicators
This slide shows key indicators on a consolidated basis. 18
Slide 19: Year-end dividend forecast increased by ¥5
We have increased our year-end dividend forecast by ¥5, thereby revising our annual dividend forecast to ¥65. Based on this outlook and our current number of shares, we expect the toral return amount to be ¥33.5 billion, the total dividend amount to be ¥28.8 billion after the ¥5 increase, and stock
Slide 20: 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, and a list of major overseas investment projects, etc. 20
Slide 21: Gas Gross Margin Sensitivity to Crude Oil Price and Exchange Rate
Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate 2 1 BH Impact of rising JCC by $1/bbl Impact on earnings Impact of depreciation by ¥1/$ Impact on earnings 3Q 4Q Full year 3Q -0.1 =0:9 =1.0 Period 4Q 0 10) 0 Full year -0.1 -0.9 -1.0 3Q 4Q Fullyear 3Q -0.6 +0.6 o Period 4Q
Slide 22: Crude oil price and exchange rate trends
rude | price - Excl ge rate Crude oil price (Japan Crude Cocktail Prices) (S/bb!) 80.00 70.00 60.00 50.00 40.00 30.00 20.00 N s 3 x eg & SS » —e-FY2021 —e-FY2020 —e=FY2019 Exchange rate a é x a (Ws) 115.0 110.0 105.0 100.0 fe f Sg —e-FY2021 —e-FY2020 —eFY2019 & $ 22 22
Slide 23: Key Topics in FY2021
Key Topics in FY2021 (Excerpted from Press Releases up to 28th October.) + Notice regarding Partial Changes to Articles of Incorporation (Apr. 28) + Notice regarding Spin-off (Absorption-type Company Spit) (Apr. 28) + Notice regarding Spin-off (Simplified Absorption-type Company Spit (May 29) Jcinct
Slide 24: Key Topics in FY2021 (continued)
Key Topics in FY2021 (Excerpted from Press Releases up to 28th October.) 24 EH + Additional special measures pertaining to gas and electriaty bill payments in relation to the 2021 COVID-19 outbreak SG (Apr.23,May.12Jun.14 Jul.15 Aug 23 Sept 16 Oct. 21) + Publication of Tokyo Gas Group Sustainability
Slide 25: Overseas Projects
Overseas Projects 25 ° 900 e % ° Area No Country Subject Main Business Participation year Eagle Ford Upstream Shale gas 2016 TG Natural Resources Upstream Shale gas 2017 usa Tees America Downstream Energy Service 2015 e Birdsboro Power Plant Downstream Natural gas power 2017 North America ‘Aktina Do
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