Key Point of President's Regular Press Conference

Key Point of President's Regular Press Conference

FY2020 Financial Results and Regular Press Conference: President Hayashi’s Message

April 28, 2021
Chubu Electric Power Co.,Inc.

  • First, the Federal Trade Commission recently conducted on-site inspections at Chubu Electric Power and Chubu Electric Power Miraiz. I would like to apologize for the concern this has caused. We are taking these on-site inspections very seriously and extending our full cooperation to the Federal Trade Commission’s investigation.
  • I will be discussing the following matters today:
  • FY2020 Financial Results

FY2020 Financial Results

  • FY2020 consolidated operating revenues totaled 2,935.4 billion yen.
    COVID-19 and other factors decreased electric energy sales, pushing down revenues to ¥130.5 billion year-on-year.
  • Ordinary income was 192.2 billion yen.
    Although we saw a decline in electric energy sales and other negative COVID-19 effects amounting to 30 billion yen as well as a 16 billion yen smaller time-lag gain coupled with additional negative factors, this past winter’s supply shortage pushed revenue up 20 billion yen in addition to a 25 billion yen rebound from JERA’s LNG sales loss in the previous period. In sum, these effects resulted in a 400 million yen increase in income.
  • It is difficult to pinpoint COVID-19 effects, so we have calculated them assuming the pandemic has decreased energy demand while excluding the effects of temperature and competition.
  • When the time-lag effect is removed, ordinary income amounted to approximately 169 billion yen, an increase of 16 billion yen year-on-year.
  • We estimate consolidated revenue to be 2,360 billion yen.
  • Due to effects such as application of the Accounting Standard for Revenue Recognition, we expect a decrease in revenue of 575 billion yen year-on-year. However, if this accounting effect is excluded, the increase in fuel cost adjustment charges and other effects result in a slight increase in revenue year-on-year.
  • Consolidated ordinary income is forecast to be 130 billion yen.
  • Although the COVID-19 pandemic rebound is a factor pushing up income 30 billion yen, we are projecting a decrease of 62 billion yen year-on-year due to, among other effects, the 43 billion yen cash flow challenge posed as a result of the time-lag gain turning into a time-lag loss, the rebound from temporary factors, such as the supply shortage effect and other transitory factors boosting cash flow year-on-year along with negative factors, such as the decrease in electric energy sales.
  • We estimate income to be 150 billion yen when the time-lag effect is removed.
  • In accordance with our shareholder return policy of maintaining stable dividend distributions and passing on income growth to shareholders, we plan to distribute a 25 yen per share year-end dividend for FY2020, just as we did for the interim dividend.
  • In our FY2021 dividend forecast, we foresee dispersing a 50 yen per share dividend over the accounting year, which sustains the annual dividend level disbursed in FY2020.
  • The impact of the pandemic is still unclear and we continue to face stiff sales competition. However, the entire Chubu Electric Power Group will capture changes in our social structure and further intensify efforts to transform our business model toward the ‘creation of new value.’ We will also provide new value to our customers and society as we strive to boost revenue as well.
  • This ends my presentation.

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