Tokyo Gas Co., Ltd. · TSE:9531

Tokyo Gas — FY2023 Earnings Presentation

40 slides from Tokyo Gas's earnings presentation, Apr 25, 2024

  1. Slide 1: FY2023 Financial Results

    TSE:9531 FY2023 Financial Results ended March, 2024 April 25, 2024

  2. Slide 2: Today's Key Messages

    Today’s Key Messages 2  Consolidated FY2023 saw a YoY fall in both sales and profits driven by a drop in Energy Solution sales stemming from a decrease in unit price due to resource costs adjustment, and by a decline in Energy Solution profits resulting partly from a change in city gas unit price d

  3. Slide 3: FY2023 Consolidated Financial Results ended March, 2024

    01 FY2023 Consolidated Financial Results ended March, 2024 Note: The segment information disclosed for FY2023 and FY2022 reflects new segment classifications that went into effect from FY2023 as a result of a restructuring of our system for providing services to local governments. Copyright© TOKYO G

  4. Slide 4: Highlights: Sales Down, Profit Down

    FY2023 Consolidated Results Sales, Interest, etc. (Apr. 1, 2023 – Mar. 31, 2024) vs. FY2022 4 Highlights: Sales Down, Profit Down (+/- indicate impact on profit, 100 million yen) Net sales -6,251 Drop in Energy Solution sales by a decrease in unit price due to resource costs adjustment, etc. Operati

  5. Slide 5: FY2023 Results: Sales and Operating Profit/Loss by Business Segments

    FY2023 Results: Sales and Operating Profit/Loss by Business Segments vs. FY2022 5 (unit : 100 million yen) Segment Profit(Operating profit Net sales*3 + Equity income/loss of subsidiaries) FY2023 FY2022 FY2023 FY2022 Results Results Change ％ Results Results Change ％ Energy solution*1 （including equi

  6. Slide 6: FY2023 Results: Ordinary Profit Analysis

    FY2023 Results : Ordinary Profit Analysis vs. FY2022 6  Decrease in city gas gross margin -1,347 Change in volume, etc. -90 (incl. change due to temp effect -92), (unit : 100 million yen) sliding time lag effect -1,257 (Net sales) -3,407: Change in volume, etc. -709, sliding time lag effect -2,698

  7. Slide 7: FY2023 Consolidated Gas Sales Volume / Number of Customers

    FY2023 Consolidated Gas Sales Volume/ Number of Customers vs. FY2022 7 City Gas sales volume: （ Unit： mil. ㎥） Number of customers(City Gas), LNG sales volume -1,271mil.㎥ (-10.1%) 14,000 including temperature effect FY2023 FY2022 Change ‐118mil.㎥,-0.9% 12,574 Number of customers -78 mil.㎥(-2.8%) +12.

  8. Slide 8: FY2023 Consolidated Electricity Sales Volume / Number of Customers

    FY2023 Consolidated Electricity Sales Volume/ Number of Customers vs. FY2022 8 Electricity sales volume： New electricity retail customers won by Tokyo Gas （ Unit：mil. kWh ） Quarter (thousands) Cumulative (thousands) 3,871 -8,966mil. kWh 3766 34,445 3,697 4,000 35,000 300 3,612 (-26.0%) 3,314 3,475 3

  9. Slide 9: FY2023 Shareholder Returns

    FY2023 Shareholder Returns 9 Policy: Total return ratio of approx. 40% (general goal for each fiscal year) ・Acquisition of treasury stock for retirement will be considered as one way of providing shareholder return in addition to dividends and aims for total return ratio (ratio of dividends on curre

  10. Slide 10: FY2024 Full Year Forecast

    02 FY2024 Full Year Forecast Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  11. Slide 11: Medium-term Management Plan Key figures

    Medium-term Management Plan (Announced: February 22, 2023） Key figures 11 FY2024 FY2023 FY2025 Reference Forecast Results Segment profits (operating profit + equity income of subsidiaries, 100 million 1,500 1,208 2,233 yen) *1 Net profit / Total assets (average of the approx. ROA 2.1% 4.5% amounts a

  12. Slide 12: FY2024 Plan (Consolidated) Segment ROA

    FY2024 Plan (Consolidated) Segment ROA 12 • As part of our actions for advancing business portfolio management, we have introduced a management approach based on individual ROA targets set for each internal company and core business subsidiary. • We disclose each segment’s ROA plan at the beginning

  13. Slide 13: Highlights: Sales Down, Profit Down (vs. FY2023)

    FY2024 Consolidated Forecast Sales, Interest, etc. (Apr. 1, 2024 – Mar. 31, 2025) vs. FY2023 13 Highlights: Sales Down, Profit Down (vs. FY2023) (+/- indicate impact on profit, 100 million yen) vs. FY2023 Decrease in Energy Solutions sales driven by a drop in unit price due to resource costs adjustm

  14. Slide 14: FY2024 Full Year Forecast: Operating Profit/Loss by Business Segments

    FY2024 Full Year Forecast: Operating Profit/Loss by Business Segments vs. FY2023 14 (unit : 100 million yen) Segment Profit(Operating profit + Equity income/loss of subsidiaries) FY2024 FY2023 Forecast Results Change ％ Energy solution*1 978 2,008 -1,030 -51.3 （including equity income of subsidiaries

  15. Slide 15: FY2024 Consolidated Forecast: Factors for Changes from FY2023

    FY2024 Consolidated Forecast (Apr. 1, 2024 – Mar. 31, 2025) vs. FY2023 15 Factors for Changes from FY2023 Ordinary profit (100 million yen) 2,281 41 51 Increase in profit Increase in profit from Overseas from Network business 1,100 -1,030 -70 -17 Decrease in profit Decrease in profit Decrease in pro

  16. Slide 16: Segment Information: Energy solution

    Segment Information: Energy solution 16 Summary of Results (Unit: 100 million yen) Segment Profit Analysis FY2024 FY2023 Change %  Decrease in city gas gross margin -454 Forecast Results Change in volume, etc. +94 (incl. change due to temp effect Net sales 23,159 24,228 -1,069 -4.4 +141), sliding t

  17. Slide 17: FY2024 Forecast Consolidated Gas Sales Volume / Number of Customers

    FY2024 Full Year Forecast Consolidated Gas Sales Volume/ Number of Customers vs. FY2023 17 City Gas sales volume: Number of customers(City Gas), LNG sales volume （ Unit： mil. ㎥） FY2023 Forecast Change Results 15,000 VS. FY2023 Results Number of customers +119mil.㎥ (+1.1%) (meters) 1,259.6 1,245.1 +1

  18. Slide 18: FY2024 Forecast Consolidated Electricity Sales Volume

    FY2024 Full Year Forecast Consolidated Electricity Sales Volume/ Number of Customers vs. FY2023 18 Electricity sales volume： （ Unit：mil. kWh ） 30,000 VS. FY2023 Results 25,479 -1,419mil. kWh 25,000 24,060 (-5.6%) Retail 20,000 Sales 13,439 15,000 24,060 10,000 Wholesale etc. 12,040 5,000 *Each value

  19. Slide 19: Segment Information: Network

    Segment Information: Network 19 Summary of Results (Unit: 100 million yen) FY2024 FY2023 Change % Forecast Results Segment Profit Analysis Net Sales 3,368 3,264 104 3.2 Segment Profit  Increase in profit due to increase in third-party (Operating profit + Equity 12 -39 51 - income/loss of subsidiari

  20. Slide 20: Segment Information: Overseas business

    Segment Information: Overseas business 20 Summary of Results (Unit: 100 million yen) FY2024 FY2023 Change % Forecast Results Segment Profit Analysis Net Sales 1,867 1,200 667 55.6 Segment Profit  Decrease in profit from upstream projects in (Operating profit + Equity 349 308 41 13.1 Australia incom

  21. Slide 21: Segment Information: Urban Development

    Segment Information: Urban Development 21 Summary of Results (Unit: 100 million yen) FY2024 FY2023 Change % Forecast Results Net Sales 721 911 -190 -20.9 Segment Profit Segment Profit Analysis (Operating profit + Equity 159 229 -70 -30.7 income/loss of subsidiaries)  Decrease in profit from real es

  22. Slide 22: Reference Materials

    03 Reference Materials Copyright© TOKYO GAS Co., Ltd. All Rights Reserved.

  23. Slide 23: Economic framework, Pension assets

    Economic framework, Pension assets 23 Economic framework FY2023 FY2022 Economic framework Forecast Results Results 145.00 Exchange rate (¥/$) 144.58 135.50 (+0.42) 80.00 Crude oil price ($/bbl) 85.97 102.73 (-5.97) 16.4 Avg. air temp (℃) 17.5 16.8 (-1.1) Pension assets Pension assets FY2022 FY2021 F

  24. Slide 24: Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate

    Gas Gross Margin Sensitivity to Change in Crude Oil Price and Exchange Rate 24 Impact of rising JCC（Japan Crude Cocktail Prices) by $1/bbl Impact on earnings (Unit: 100 million yen) 1Q 2Q 3Q 4Q Full year 1Q -1 -7 +5 +3 0 2Q - -1 -9 +6 ‐4 Period 3Q - - -2 -9 -11 4Q - - - -2 -2 Full year -1 -8 -6 -2 -

  25. Slide 25: Crude oil price, Exchange rate

    Crude oil price・Exchange rate 25 Crude oil price（Japan Crude Cocktail Prices） ($/bbl) 120.00 110.00 100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 FY2023 FY2022 FY2021 Exchange rate (¥/$) 150.0 145.0 140.0 135.0 130.0 125.0 120.0 115.0 110.0 105.0 100.0 FY2023 FY2022 FY2021 Copyright© TOKYO

  26. Slide 26: Realizing management mindful of capital costs and stock prices

    Realizing management mindful of capital costs and stock prices 26 Trends in key indicators Achieve PBR of more than one early and PER FY2023 FY2024 PBR move to a higher level Reasons for change Results Results 2.00 30.00 1.80 25.00 1.60 Decreased due to lower 1.40 profits and an increase in 20.00 1.

  27. Slide 27: Realizing management mindful of capital costs and stock prices: Key growth investments

    Realizing management mindful of capital costs and stock prices (3) Key growth investments 27 Below are major projects announced following the start of the current medium-term management plan. Going forward, we will provide updates on their status/progress as appropriate. Business area Major projects

  28. Slide 28: Key Topics in FY2023: Initiatives for the 3 core strategies

    Key Topics in FY2023 (Excerpted from Press Releases) 28 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Carbon-negative concrete used at Motomachi Elementary School in Yokohama (Apr. 13) Joint acquisition of solar power generation business in Okayama and Hyogo prefectu

  29. Slide 29: Key Topics in FY2023: Initiatives for the 3 core strategies

    Key Topics in FY2023 (Excerpted from Press Releases) 29 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Commencement of the Joint Feasibility Study with Santos for Production and Export of e- methane in Australia （Nov. 21） Signing of cooperative agreement with Italian

  30. Slide 30: Key Topics in FY2023: Initiatives for the 3 core strategies

    Key Topics in FY2023 (Excerpted from Press Releases) 30 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Joint demonstration of method of reducing methane emissions from paddy fields in the Philippines (Feb. 28) Long-Term Charter Contract for Newbuild LNG Carrier Signed

  31. Slide 31: Key Topics in FY2023: Initiatives for the 3 core strategies

    Key Topics in FY2023 (Excerpted from Press Releases) 31 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Acquisition of real estate asset management company and entry into private REIT business (Apr. 3)*2 Signing of comprehensive partnership agreement for sustainable ur

  32. Slide 32: Key Topics in FY2023: Initiatives for the 3 core strategies

    Key Topics in FY2023 (Excerpted from Press Releases) 32 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Signing of comprehensive partnership agreement for realizing a carbon neutral city in Tochigi City (July 13) Launch of project for increasing social impact of real e

  33. Slide 33: Key Topics in FY2023: Initiatives for the 3 core strategies

    Key Topics in FY2023 (Excerpted from Press Releases) 33 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Introduction of renewable energy-derived J-Credit scheme at three Calbee sites at Kiyohara Industrial Park (Oct. 19)*3 Tokyo Gas Real Estate joins in its second real

  34. Slide 34: Key Topics in FY2023: Initiatives for the 3 core strategies

    Key Topics in FY2023 (Excerpted from Press Releases) 34 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Signing of comprehensive partnership agreement for promoting carbon neutrality and realizing highly disaster-resilient urban development in Inagi City (Dec. 11) Kiyo

  35. Slide 35: Key Topics in FY2023: Initiatives for the 3 core strategies

    Key Topics in FY2023 (Excerpted from Press Releases) 35 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Signing of partnership agreement for realizing 2050 Zero Carbon Chiyoda (Feb. 9) Signing of comprehensive partnership agreement for realizing Fujinomiya-shi Zero Car

  36. Slide 36: Key Topics in FY2023: Initiatives for the 3 core strategies

    Key Topics in FY2023 (Excerpted from Press Releases) 36 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Chigasaki City, Samukawa Town, and Tokyo Gas sign partnership agreement on urban development toward a carbon-neutral future (Mar. 27) Signing of comprehensive partne

  37. Slide 37: Key Topics in FY2023: Initiatives for the 3 core strategies

    Key Topics in FY2023 (Excerpted from Press Releases) 37 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Notification of Resolution to Acquire of Treasury Shares (Apr. 26) Nihon L'Oreal and Tokyo Gas Real Estate reach agreement on promoting building development that use

  38. Slide 38: Key Topics in FY2023: Initiatives for the 3 core strategies

    Key Topics in FY2023 (Excerpted from Press Releases) 38 FY2023-2025 Medium-term Management Plan: Initiatives for the 3 core strategies Progress and changes in disclosure matters: Notice of partial change regarding the transfer of shares in five Australian project holding companies by one of our subs

  39. Slide 39: Overseas Projects

    Overseas Projects 39 9 1 2 4 5 7 3 6 8 Area No Country Subject Main Business Participation year Eagle Ford Upstream Shale gas 2016 TG Natural Resources Upstream Shale gas 2017 TGES America Downstream Energy Service 2015 1 U.S.A Birdsboro Power Plant Downstream Natural gas power 2017 North America Ak

  40. Slide 40: Cautionary Statement regarding Forward-looking Statements

    < 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 the future per

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