FY2015 Financial Results

Transcription

1 FY2015 Financial Results Supplemental Material April 27, 2016(Wed)

2 Regarding Forward-Looking Statements(Performance Projections) Certain statements in the following presentation regarding Hokuriku Electric Power Company s business operations may constitute forward-looking statements. As such, these statements are not historical facts but rather predictions about the future, which inherently involve risks and uncertainties, and these risks and uncertainties could cause the Company s actual results to differ materially from the Forward-looking statements (Performance projections) herein. (note) Please note that the following to be an accurate and complete translation of the Japanese version prepared for convenience of our English-speaking investors. In case of any discrepancy between the translation and the Japanese original, the latter shall prevail.

3 Total Sales of Electric Power billion kwh (0.37billion kwh decrease compared with the previous year) Lighting and Commercial : Decrease in demand for heating due to warmer winter Industrial and other : Same as the previous year (Billion kwh,%) Regulated Liberarized FY15 FY14 Comparison (A) (B) (A)-(B) (A)/(B) Lighting Δ Power Δ Subtotal Δ Commercial Δ Industrial and other Δ Subtotal Δ Total Δ Large-scale Industrial Residential Δ Other than residential Δ Residential=lighting, commercial power and night only service 1

4 (Reference)Sales to Large-scale Industrial by main Industry Total of large-scale Industrial Main industry (Billion kwh,%) FY15 FY14 Comparison (A) (B) (A)-(B) (A)/(B) Textile Δ Paper and pulp Δ Chemical Steel Δ Machinery (Electrical Machinery in Machinery sector) (2.31) (2.22) (0.09) (104.1) Fabricated metal Δ (Reference)Average monthly temperature(3 Hokuriku cities) Actual data Comparison with the previous year Comparison with the average year April May June July August September October November December January February March Δ Δ0.9 Δ Δ1.2 Δ (Note)Hokuriku 3 cities:toyama city, Kanazawa city, Fukui city ( ) 2

5 Total Power Generated, Purchased and Sold Hydro : Increase in water flow Thermal : Decrease in coal-fired thermal power generated Purchased (sold) form other companies : Increase in purchase of renewable energy [Flow ratio] Hydroelectric Thermal Nuclear Renewable Subtotal Purchased from other utilities Sold to other utilities Total FY15 (Billion kwh,%) FY14 Comparison (A) (B) (A)-(B) (A)/(B) [107.1] [104.3] [2.8] Δ Δ Δ Δ0.50 Δ Δ

6 Overview of FY2015 Financial Results Consolidated operating revenue : 11.8 billion yen increase Due to making Hokuriku electrical construction Co.,LTD consolidated subsidiary, despite of decrease in total sales. Consolidated ordinary income : 5.7 billion yen increase Due to the increase in hydro power generated and decrease in maintenance expenses, depreciation and interest paid, despite of decrease in total sales and decrease in coal-fired thermal power generated. (Billion yen,%) FY15 FY14 Comparison (A) (B) (A)-(B) (A)/(B) Operating revenue Consolidated Operating income Δ Ordinary income Profit attributable to owners of parent Operating revenue Δ Nonconsolidated Operating income Δ Ordinary income Net income (<The number of consolidated subsidiaries 13 affiliates and 1 equity method affiliates> 4

7 Changing factor of Consolidated Operating Revenue (Comparison with FY2014:+11.8billion) Making Hokuriku electrical construction Co.,LTD. a consolidated subsidiary Decrease in total sales Δ17.0 Decrease in fuel cost adjustment Increase in Grant and Surcharge of renewable energy Δ FY14 [Actual] 2015 FY15 年度 [Actual] [ 実績 ] 5

8 Changing factor of Consolidated Ordinary Income (Comparison with FY2014: +5.7billion) * は燃料 Decrease in retail sales Δ3.0 Decrease in coal-fired thermal power Decrease in maintenance expenses, depreciation and interest paid Making Hokuriku electrical construction Co.,LTD. a consolidated subsidiary 程度 Δ7.0 程程度 Increase in hydro power generated +2.0 FY14 [Actual] FY15 [Actual] 6

9 Non-consolidated Statement of Income Lighting,commercial and industrial (Renewable Energy Power Promotion Surcharge) FY15 FY14 Comparison (A) (B) (A)-(B) (A)/(B) Δ (35.8) (17.3) (18.5) (207.4) (Note) Main reason of increase and decrease Decrease in total sales Decrease in fuel cost adjustment charge Increase in Renewable Energy Power Promotion Surcharge (Billion yen,%) Ordinary revenues Sales to other utilities Δ Decrease in sales at JEPX Others Increase in Grant under Act on Purchase of Renewable Energy Sourced Electricity (Grant under Act on Purchase of Renewable Energy Sourced Electricity) (19.7) (13.0) (6.6) (150.5) (Operating revenues) (494.1) (513.0) (Δ18.8) (96.3) Total Δ Personnel expenses Δ Fuel expenses Δ Decrease in employees retirement benefits Falling fuel prices Increase in hydro power generated Maintenance expenses Δ Decrease in expenses for power plants Ordinary expenses Depreciation expenses Δ Purchased power expenses Interest paid Δ Taxes other than income taxes Δ Progress in depreciation Increase in power purchased from other utilities Decrease as a reactionary fall by redeeming straight bond in advance last year Income taxes Net income Other expenses Increase in levy under act on purchase of renewable energy sourced electricity (Levy under Act on Purchase of Renewable Energy Sourced Electricity) Operating income Ordinary income Provision (reversal) of reserve for fluctuation in water levels (35.8) (17.3) (18.5) (207.4) Total Δ Δ Δ

10 Consolidated Balance Sheet (Summary) End of FY15 End of FY14 Comparison (A) (B) (A)-(B) (Note) Related to only Hokuriku Electric Power Company Fixed assets 1, , Electricity business Δ24.6 Others Current assets Cash and Stores 17.7 Total assets 1, , Debt with interest Straight bond 10.0 Long-term debt loan 35.3 Other debt Δ9.4 tax payable Δ10.6 Reserve for fluctuation in water levels Total liabilities 1, , Total net assets Δ10.2 [Equity ratio] [21.5%] [22.7%] [Δ1.2%] Total of liabilities and net assets 1, , Capitalization of construction 42.0 Depreciation Δ63.6 Increace the amount of construction in progress 94.4 Capitaliation of construction Δ41.8 Accumulated other comprehensive income Δ13.9 Retained earnings 2.4 8

11 Consolidated Statement of Cash Flows (Summary) FY15 FY14 Comparison (A) (B) (A)-(B) Ⅰ.Operating activities Δ43.3 Income before income taxes and minority interests Depriciation and amortization Δ3.1 Others Δ Δ43.7 Ⅱ.Investing activities2 Δ85.0 Δ Capital expenditure Δ86.7 Δ Long-term investment and others Δ11.5 Ⅲ.Financing activities 33.9 Δ Loan,bond,etc 44.5 Δ Purchases and sales of own stock Δ0.0 Δ0.0 Δ0.0 Cash dividends paid3 Δ10.5 Δ10.4 Δ0.1 Ⅳ.Net increase in cash and cash equivalents(Ⅰ+Ⅱ+Ⅲ) 18.7 Δ Free cash flow(1+2+3) Δ25.8 Δ1.3 Δ24.4 (Reference : non-consolidated free cash flow) (Δ29.4) (Δ15.1) (Δ14.2) 9

12 FY2016 Revenue and Income Forecast 540 billion yen consolidated operating revenue and 490 billion yen nonconsolidated operating revenue. Reasonable forecasts of Operating income, Ordinary income and Profit attributable to owners of parent can not be made at this point, because of uncertainty of stable supply. Dividends forecast cannot be made at this point because income forecast is uncertain. (Billion kwh, Billion yen) Consolidated Nonconsolidated Total sales of Electric Power Operating revenues Operating income Ordinary income Profit attributable to owners of parent Operating revenues Operating income Ordinary income Net income *Figures in parentheses denote parcentage from the previous year. FY16 FY15 Forecast (A) Actual (B) ( 102% ) ( 99% ) ( 99% ) ( 99% ) ( 102% ) 38.1 ( 95% ) 28.0 ( 126% ) 12.8 ( 143% ) ( 96% ) 28.7 ( 82% ) 18.9 ( 105% ) 8.7 ( 131% ) Comparison (A)-(B) Δ4.5 Δ4.1 Dividends 10

13 Changing factor of Operating Revenue (Forecast) (Comparison with FY2015) * は燃料費控 Increase in Grant and Surcharge of renewable energy Decrease in fuel cost adjustment income Increase in total sales < 内訳 > 再エネ賦課金増 +190 再エネ交付金増 + 60 <Breakdown> Surcharge : Grant : +3.0 Δ22.0 Others Δ 程度 FY15 [Actual] FY16 [Forecast] 11

14 Main factor of increase and decrease related to Non-consolidated Finance Results(Revenue) [Lighting, commercial and industrial] Total Sales of electric power FY15 FY14 Comparison (A) (B) (A)-(B) Δ 0.37 (Note) Main reason for increase and decrease (Billion kwh,billion yen) Revenue from lighting, commercial and industrial ( Lighting ) ( Power ) Δ Δ Δ 6.1 Decrease in total sales of electric power Δ4.5 Decrease in fuel cost adjustment charges Δ26.0 Increase in renewable energy power promotion surcharge [Sales to other utilities] FY15 FY14 Comparison (A) (B) (A)-(B) Revenue from sales to other utilities Δ 12.5 Revenue from sales to other electric utilities Δ 5.0 Revenue from sales to other utilities Δ 7.5 (Reference)supply volume To other electric utilities Δ 0.15 To other utilities Δ 0.09 (Note) Main reason for increase and decrease Decrease in total sales to other electric utilities Decrease in revenue from sales at JEPX (Billion kwh) 12

15 Main factor of increase and decrease related to Non-consolidated Finance Results(Expense) [Personnel expenses] FY15 (A) FY14 (B) Comparison (A)-(B) (Note) Main reason for increase and decrease Personnel expenses Δ6.1 Retirement benefit Δ Δ 4.8 Amortization of actuarial differences [Reference] Numebr of employee at the end of FY 4,869 4,899 Δ 30 (People) [Fuel expenses] FY15 FY14 Comparison (A) (B) (A)-(B) Fuel Expenses Δ 26.3 ( Oil ) (28.6) (45.0) (Δ16.4) ( Coal ) (73.7) (83.6) (Δ9.9) (Note) Main reason for increase and decrease Decrease in coal-fired thermal power generated +7.0 Increase in hydro power generated Δ2.0 Falling fuel prices Δ19.0 Decrease in electricity sales volume Δ12.0 (Reference)Key factors Currency rate(yen/$) CIF oil prices[all Japan] ($/b) Δ 41.7 CIF coal prices [ ] ($/t) Δ

16 Main factor of increase and decrease related to Non-consolidated Finance Results(Expense) [Maintenance expenses] Maintenance expense FY15 FY14 Comparison (A) (B) (A)-(B) Δ 2.9 [Purchased power expenses] FY15 FY14 Comparison (A) (B) (A)-(B) Purchased power expenses Expenses to other utilities (Note) Main reason for increase and decrease Power source Δ 3.8 Decrease in expenses for power plants Destribution Increase in expenses for smart meter Others Δ 0.3 (Note) Main reason for increase and decrease Expenses to public and wholesale utilities Increase in purchase of renewable energy (Reference)supply volume To other electric utilities To other utilities (Billion kwh) 14

17 (Reference)Key Factor and Sensitivity <Key Factor> FY11 FY12 FY13 FY14 FY15 FY16 Forecast Electricty sales (Billion kwh) Currency rate (Yen/$) CIF oil prices [All Japan] ($/b) Flow rate (%) Nuclear utilization ratio (%) <Sensitivity> FY11 FY12 FY13 FY14 FY15 (Billion yen/year) FY16 Forecast Currency rate (1yen/$) CIF oil prices [All Japan] (1$/b) Flow rate (1%) Nuclear utilization ratio (1%)

18 (Reference)Data related to financial results <Profit and loss> Operating revenue Operating income Ordinary income Net income FY11 FY12 FY13 FY14 FY15 [Consolidated] [Non-consolidated] [Consolidated] [Non-consolidated] [Consolidated] [Non-consolidated] Δ2.2 Δ [Consolidated] Δ [Non-consolidated] Δ6.6 Δ (Note) Figures in FY15 consolidated Net income is "Profit attributable to owners of parent" <Balance sheet> FY11 FY12 FY13 FY14 FY15 FY16 Forecast FY16 Forecast Total assets Net assets [Consolidated] 1, , , , ,509.3 [Non-consolidated] 1, , , , ,458.9 [Consolidated] [Non-consolidated] <Capital investment> Capital Investment FY11 FY12 FY13 FY14 FY15 [Consolidated] [Non-consolidated] (Note) Figures in Non-consolidated are only for electricity business FY16 Forecast 16

19 Contact Information for Inquiries Finance Team Finance & Accounting Dept Hokuriku Electric Power Company 15-1 Ushijima-Cho, Toyama, , Japan TEL: ,3337(Direct) FAX: Internet address address