Investors Meeting for FY2009 Financial Results

Transcription

1 Investors Meeting for Financial Results The Chugoku Electric Power Co., Inc. May 11,2009 In this presentation, the term Fiscal Year 2009 describes the period which ended March, 2009.

2 Contents Ⅰ.Summaryof FinancialResults and FY2010PerformanceOutlook 1 Ⅱ. FinancialResults 9 Ⅲ.PerformanceOutlookforFY

3 Ⅰ.Summary of Financial Results and FY2010 Performance Outlook 1

4 FY209FinancialResults Thenetdeficitof issummedupbythematerialcostincreaseetc.accordingto theriseof uelprice,thoughtherewasanelectricrateincomeincreasebythefuel f expensesadjustment. Thestabledividendof50yenperstockcontinues. TheapproachtosolvetheproblemrecognizedinFY209willbesteadil yexecuted. <Keytask> Fuelpricefluctuationinfluence easing Nuclearpowerdevelopment Electricitysalesincrease Demanddevelopment Nuclearcapacityfactorimprovement Preventivemaintenance CO2exhaustamountreduction Premeditated,strategicCO2exhaustcreditcostmaking FY209FinancialResults(Consoli dated) Operating Revenue Operating Income Ordinary Income Net Income Crude Oil Prices (All Japan CIF) OrdinaryExpenses 1, $/b (+65.3) ( 68.8) ( 77.9) ( 48.8) (+11.7) Materialcostincrease Maintenancecostincrease 11.5 CO2exhaustcreditcostmaking 20.6 Keyfactorofordinaryincomedecrease( 77.9) Unit:bill ionyen OperatingRevenue Electricrateincomeincrease Unit:bilionyen 1, $/b 2

5 FY2010 Estimated Financial Results 3 Thenetprofitincreasewill beexpectedbythematerialcostdecreasesetc. inspiteofelectricrate incomedecreasebythe fuelexpensesadjustment. FY2010FinancialEstimate( Consolidated ) Unit:billion yen Operating Revenue Operating Income Ordinary Income Net Income FY2010 Estimate 1, ( 64.7) (+69.4) (+79.1) (+53.5) Result 1, Crude Oil Prices (All Japan CIF) 55$/b ( 35.4) 90.4$/b Key factorofordinaryincomeincrease (+79.1) Operating Revenue Unit:billi onyen Electricrateincomedecrease 57.2 Decreasebytheamountof the fuelexpensesadjustmentetc. Ordinary Expenses Materialcostdecrease LowOil Price,higheryenrate Maintenancecostincrease 12.4

6 Point of FY2010 Estimated Financial Results 1 (Electricity Sales) Thelarge-scaleelectricitysaleswill beexpectedtobeadecreasecompared withthoughagradualeconomicrecoveryfromthelaterhalf offy2010. Weaimattheelectricitysalesincreasebyasteadyapproachforthedemand developmentsuchasallelectrificationhousespreadexpansionsetc. Electricity sales Estimate Otherthan Eli gible Customers ( ) Eli gible Customers Total Lighting Low Voltage Subtotal Large-scale [Unit:Mill ionmwh] FY2010 Diference Estimate Result (A) (B) Approachfordemanddevelopment [Unit:MilionMWh] FY209 Result FY2010 Estimate Eligible Customers : Demand for special high-tension or high-tension power reception with contracted power that is, in general, 50 kw or more. Recommendhighlyefficientheatpumps for airconditioningandhot Corpor watersupply fields. ate Recommendconverting field toal-electric for business-use facilities, starting fromthekitchen area. Reside ntialuse field 4 Electrificationreform expansioninpre-existing residencestoelectricity. Proposalof efficient utilizationof energy throughelectrification house

7 Point of FY2010 Estimated Financial Results 2 (Strengthening Equipment Foundation) TheregularinspectionperiodoftheShimanenuclearpowerNo.1andNo.2will belongerthanstandardinspectionperiodtostrengthencountermeasuresto improvemarginofearthquakeresistanceandtoimplementpreventive maintenance. TherepairsexpenseofFY2010will beexpectedtobeaincreaseby approximately12billi onyencomparedwithbyenhancingofmaintenance forthepreparation forthere-operationofshimonosekino.2 (undersuspension), decreaseoftherateofthestopoutsidetheplanof large-scalecoalthermal powerandcountermeasuresagainstagingdegradationofnetworkfacili ties Periodicinspection resultandfy2010 plan Result FY2010 Estimate Shimane No. 1 Shimane No. 2 September March NuclearCapacityFactor Shimane No. 1 Shimane No. 2 Total (2008,February~) April Result 96.4% 45.2% 63.6% May October March (~FY2010,July) FY2010Estimate 51.1% 91.9% 77.2% Implementationof worktoimprove marginofearthquakeresistance Regularinspectionperiod :Theperiodicinspectionlength will be longerthanastandard length(60days). 5 Implementationofworktoreplace ofreactorrecirculationpipes. Thebeginningtimeof theperiodic inspection will be movedup.

8 Point of FY2010 Estimated Financial Results 3 (Approach for CO2 exhaust reduction) Wepositivelyworkonthenewnuclearpowerdevelopmentetc.fortheCO2 exhaustreduction. MakingtheCO2exhaustcreditcostis intendedtoexecutedfromastrategic standpointtocorrespondelectricpowertenderthatconsidersco2emission,in additiontocertainlyachieveourindependentactiontarget. (Unit:kg-CO2/kWh) CO2emissionintensity Approx. 20% reduct ion 6 Independentactiontarget. TheaverageCo2emission intencityfrom tofy 2013isreducedbyapproximately 20%comparedwithFY ConcreteapproachforCO2exhaustreduction ShimaneNo.3construction(BusinessStartPlanofDecember,2011) MizushimaNo.1LNG Combined (BusinessStartPlanof April,209) Makingthermal generating facil itiesmoreefficient, Introductionandspreadpromotionsof newenergy etc. FY1991 FY200 8 FY200 9 FY201 3

9 Information & Telecommunication Business 7 Thetelecommunicationbusinessisimprovedtothemanagementfoundation thatcancreateoperatingincomethroughanincreaseinthenumberof customersandthoroughcostreduction,etc. Theincreaseofthenumberofcustomerswill beatemptedby recommending thesetjoiningwiththesupplementaryserviceli keaphotoelectricstoryinthe Internetbusinessetc.inthefuture. Financial Results Summary OperatingRevenue Telecommunication Business Operating Income Telecommunication Business Result [Unit:billion yen] (thousands) FY2010 Estimate The Number of FTTH Subscriptions Plan (FY)

10 Comprehensive Energy Supply Business 8 SteadyincreaseinexpansionoftheLNGsalesvolumewill beexpectedinthe futurethoughtheexpansionhassomewhatbecamedull erbyinfluenceofthe slowdown. InMizushimaProject,westeadil yworkontheinfrastructuremaintenanceof expansionofanadditionallngtankinmizushimastation,okaya mapipeli ne construction(mizushima~okayamacity)etc. Financial results Summary LNG Sales Volume Operating Reve n ue LNG Supply Operating In co m e LNGSupply (thousands tons) 600 [Unit:billion yen] FY Result Estimate Yanai Mizushima Expansionof MizushimaStation tanks (FY2012) Comprehen siveenergysupplybusinessisrunby TheChugokuElectricPowerCompany,EnergiaSolution andservicecompany,andpowerengineeringandtraining Service. MIZUSHIMALNGSALESCOMPANY (equitymethodafiliate) excluded Plan LNGSalesVolumeincludingthesalesof MizushimaLNGSalesCompany. (FY)

11 Ⅱ. Financial Results 9

12 Results Summary 10 [ Consolidated ] Unit:billion yen (A) (B) Comparison (A/B) Operating Revenue 1, , % Operating Income % Ordinary Income Net Income [ Non-consolidated ] Operating Revenue Operating Income Ordinary Income Net Income (A) 1, (B) 1, Unit:billion yen Comparison (A/B) 106.6% 14.1% - -

13 Electricity sales 11 Electricity sales Results (Use distinction)[unit:million MWh,%] (A) (B) Comparison (A/B) Other than Eligible Customers ( ) Lighting Low Voltage Subtotal Commercial Eligible Customers Industrial (Large-scale) (23.51) (25.56) 2.26 ( 2.05) 92.6 (92.0) Subtotal Total Eligible Customers: Demand for special high-tension or high-tension power reception with contracted power that is, in general, 50 kw or more.

14 Supply Capacity 12 (A) (B) Supply Capacity Own Facilities (Water Flow Rate) Hydroelectric Thermal (Capacity Factor) Nuclear Purchased Power Interchanged Power (%) Million MWh Million MWh (%) Million MWh Million MWh Million MWh (82.5) (63.6) (77.1) (75.5) (5.4) ( 11.9) Pumping Use Million MWh Total Million MWh Exchange Rate (Inter Bank, /$) Fuel Crude Oil Prices (All Japan CIF, $/b) Foreign Coal Prices (All Japan CIF, $/t) Variables (Unit:billion yen ) Exchange Rate /$ Crude Oil Prices (All Japan CIF) $/b Water Flow Rate % Nuclear Capacity Factor %

15 Non-consolidated Income Statement [ 1/3 ] [ Revenue ] (A) (B) Breakdown 13 Unit:billion yen Ordinary Revenue Operating Revenue Electricity Sales Lighting Commercial & Industrial Subtotal Sales to Other Companies etc. Subtotal , , , Decrease in electricity sales 35.8 Fuel cost adjustment etc Increase in incidental businesses 12.5 Decrease in sales to other companies 8.1 Other Revenues Total 1, ,

16 [ Expense ] Ordinary Expense Non-consolidated Income Statement [2/3 ] 14 Operating Expense Material Personnel Nuclear Power Backend Other Expenses Interests Other Expenses Total Fuel Purchased Power Subtotal Maintenance Depreciation Subtotal (A) , ,135.7 (B) Unit:billion yen Breakdown Increase in retirement allowances 6.8 High CIF price Decrease in coal utilization 32.9 Decrease in capacity factor of nuclear power plant 17.9 higher yen rate 50.7 Increase in thermal 8.7 Increase in nuclear 1.4 Decrease caused by progress in the depreciation Decrease in decommissioning expense of nuclear power generating plants 6.7 Increase in carbon-emission credit expense 20.6 Increase in incidental businesses expense 11.2

17 Non-consolidated Income Statement [3/3 ] 15 [Income, etc. ] Unit:billion yen (A) (B) Breakdown (Operating Income) (10.9) (77.8) ( 66.8) Ordinary Income Provision (Reversal)for Drought Provision for depreciation of nuclear power plant Provision for depreciation of Shimane Unit NO.3 Income taxes etc Net Income

18 Non-consolidated Balance Sheet 16 Unit:billion yen (A) (B) Breakdown Assets 2, , (Construction in Progress ) Liabilities (Interest-Bearing Debt ) (Provision for depreciation of nuclear power plant) (391.8) 2,058.5 (1,660.7) (36.4) (291.6) 1,931.0 (1,551.8) (23.8) (100.1) (108.8) (12.5) Breakdown of Interest-Bearing Debt Differenc e Corporate Bond Lon-term Debt Short-term Debt CP Total 1, , Total Net Assets Stockholders Equity Ratio 21.2% 23.5% 2.3%

19 Consolidated Results Summary 17 Unit:billion yen (A) (B) Breakdown Operating Revenue 1, ,108.3 (1,107.4) (1,038.4) 65.3 Increase fuel cost adjustment (69.0) Increase LNG sales Operating Income Ordinary Income 15.5 (10.9) 19.1 ( 16.3) The large increase in the payment of material cost (77.8) ( 66.8) caused by fuel price rising (51.2) ( 67.5) Net Income 23.5 ( 19.2) 25.2 (20.7) 48.8 ( 40.0) (*)( ) Non-consolidated

20 Consolidated Application of Free Cash Flow 18 Unit:billion yen (A) (B) Breakdown Cash Flow form Operating Activities Net loss Cash Flow from Investing Activities Increase in purchase of investment securities Free Cash Flow Cash Flow from Financing Activities Cash and Cash Equivalents (increase and decrease) Increase in funding with corporate bond and commercial paper, etc.

21 Ⅲ. Performance Outlook for FY

22 Non-consolidated Major Factors 20 [Major Factors] FY 2010 Estimate (A) FY 2009 Result (B) Total Electricity Sales Million MWh Exchange Rate /$ Crude Oil Prices (All Japan CIF) Nuclear Capacity Factor $/b % Water Flow Ratio % Variables (Unit:billion yen ) Exchange Rate Crude Oil Prices (All Japan CIF) Water Flow Ratio Nuclear Capacity Factor /$ $/b % % FY2010 Estimate

23 Performance Outlook for 21 Unit:billion yen Consolidated Non-consolidated FY 2010 Estimate (A) FY 2009 Result (B) FY 2010 Estimate (A) FY 2009 Result (B) Operating Revenue 1, , , , Operating Income Ordinary Income Net Income

24 Revenue and Expense (Non-consolidated) Total operating Revenue Operating Revenue (Details) Electricity Sales Other Revenues Total Expenses Personnel Material Cost Maintenance Depreciation & Interests Nuclear Power Back-end Other Expenses Ordinary Income FY 2010 FY 2009 Estimate (A) Result (B) 1, , , , , , Breakdown Fuel cost adjustment etc. 60 Increase in electricity sales 3 Increase in retirement allowances 4 Low oil CIF price 68 higher yen rate 17 Increase in capacity factor of nuclear power plant 11 Increase in water flow rate 5 Power Source 9 Electric Power Transport 3 Unit:billion yen Decrease caused by progress in the Depreciation etc. 22

25 Appendix 23

26 Expenses (Non-consolidated )1 1. Personnel FY2003 FY2004 FY2005 FY2006 FY2007 Total Total (A) (B) Unit:billion yen 5.4 Salary Allowance Retirement Allowances [Actuarial ] Recorded amount Amount of amortization (*) Amortize for five years from next recorded year Amount of amortization Balance of nonamortization Breakdown Decrease in employees Breakdown Decrease in expected earning ( ) non- amortization years Unit:billion yen

27 Expenses (Non-consolidated ) Maintenance Total Power Source Others (A) Unit:billion yen (B) Electric Power Transport Breakdown Thermal+8.7 Inspections and repairs in Misumi Nuclear Depreciation Total Power Source Others (A) Unit:billion yen (B) Electric Power Transport Breakdown Introduction of LNG Combined-Cycle Power Generation (Mizushima No.1) (*) Electric business operating expense

28 Balance Sheet (Non-consolidated ) Assets (A) (B) Unit:billion yen Breakdown Electric Utility Fixed Assets 1, , Asset Capitalization 64.7 Fixed Assets Incidental Business Fixed Assets Non-business Fixed Assets Construction in Progress Nuclear Fuel Others Depreciation Retirement, etc. Accumulated Depreciation Rate % Shimane Nuclear Power Station Unit No.3,etc. Subtotal 2, , Current Assets Total 2, ,

29 Balance Sheet (Non-consolidated )2 2. Liabilities and Net Assets Liabilities Net Assets Long-term Liabilities Current Liabilities Provision for depreciation of nuclear power plant Total Liabilities Common Stock Capital Surplus Retained Earnings Treasury Stock Net Unrealized Holding Gains on Securities Total Net Assets total (A) 1, , ,611.1 (B) 1, , , Corporate Bond Lon-term Debt Short-term Debt CP Total Breakdown , ,551.8 Stockholders Equity Ratio 21.2% Dividend paid in June 9.1 Interim dividend paid in December 9.1 Net income of % 2.3% 27 Unit:billion yen Breakdown of Interest-Bearing Debt

30 FY2010 Capital Expenditure (Non-consolidated) 28 Unit:billion yen Classification Fiscal Year FY2010 Estimate(A) Result(B) Power Source Hydroelectric Thermal Nuclear Subtotal Electric Power Transport Transmission Transformation Distribution Subtotal Nuclear Fuel Others Total (*)Subsidiary Business Facilities Excluded

31 Diffusion rate of Completely Electrical Housing and Electric Water Heater 29 Unit FY2007 Result Result Result FY2010 Plan FY2011 Plan FY2012 Plan Completely Electrical Housing Introduced Newlyconstructed Number of Housing (thousand) (*1)Reformed The ratio of newly constructed Electrical Housing Single homes Housing complexes Household diffusion rate of completely % electric homes Electric Water Heater Sales Ecocute The diffusion rate of Electric Water Heater Electric Water Heater Contract Accounts (accumulated total) % Number of Housing (thousand) % Thousands of accounts (*1) Reformed includes homes which were converted to all-electric by the replacement only of hot-water supply equipment and kitchen equipment. (*2) Total amounts may not agree due to rounding off

32 Segment Information 30 [Unit:billion yen, round down to the hundred million Electricity Information & Telecommunication Comprehensive Energy Supply Operating Revenue FY2010 Estimate Result Result ( 63.0) (56.4) 1, , ,019.6 ( 1.3) ( 0.3) ( 6.1) (14.8) Operating Expense FY2010 Estimate Result ( 130.9) (124.6) ,065.9 ( 1.3) ( 2.2) ( 5.9) (12.3) Result FY2010 Estimate (67.9) 78.0 (0.0) 3.5 ( 0.1) 1.1 Operating Income Result ( 68.2) 10.1 (1.8) 3.5 (2.4) 1.3 Result (*)( ) Changes from previous year

33 None of the information on this document is intended to solicit of induce purchase or selling of the Company s stocks. Moreover Chugoku Electric makes no guarantees whatever regarding the contents of this website. Persons considering investment in the Company should without fail read in advance the stock and bond reports and other financial literature issued by the Company, and make decisions on their own judgment. Though great care is exercised in the preparation of such literature, Chugoku Electric and the other information providers shall not be liable in any manner for any loss whatever incurred as a result of erroneous information contained therein or in this document. Items in Chugoku Electric s current plans and strategies, etc., published on this document which are not yet historical fact are projections concerning future performance and as such involve factors of risk and uncertainty which means that actual performance in the future may differ to a large extent from projections published here. Therefore Chugoku Electric does not guarantee the reliability of such projections.

34 For Questions or Comments, Please Contact the Investor Relations Section at the Address Below: Hiroshima-Shi, Naka-ku, Komachi 4-33 The Chugoku Electric Power Co., Inc. Corporate Planning Division F A X : ir@inet.energia.co.jp