F F inancial Results inancial Results Presentation Meeting Presentation Meeting Interim Interim results for results for FY2007 FY2007 (Apr. (Apr. - - Sep. 2007) Sep. 2007) Oct. 29, 2007 Mitsunori Torihara, President Tokyo Gas Co., Ltd. Statements made in this presentation with respect to Tokyo Gas’s present plans, projections, strategies and beliefs, and other statements herein that are not expressions of historical fact or forward-looking statements about the future performance of the company. As such, they are based on management’s assumptions and opinions stemming from currently available information, and therefore involve risks and uncertainties. The company’s actual performance may greatly differ from these projections due to these risks and uncertainties which include, without limitation, general economic conditions in Japan, changes in the foreign exchange rate of the yen, crude oil prices, and the weather.
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InterimInterim results for results for FY2007FY2007 (Apr.(Apr.--Sep. 2007)Sep. 2007)
Oct. 29, 2007 Mitsunori Torihara, President
Tokyo Gas Co., Ltd.
Statements made in this presentation with respect to Tokyo Gas’s present plans, projections, strategies and beliefs, and other statements herein that are not expressions of historical fact or forward-looking statements about the future performance of the company. As such, they are based on management’s assumptions and opinions stemming from currently available information, and therefore involve risks and uncertainties. The company’s actual performance may greatly differ from these projections due to these risks and uncertainties which include, without limitation, general economic conditions in Japan, changes in the foreign exchange rate of the yen, crude oil prices, and the weather.
Summary of Interim Results (Apr.-Sep. 2007)
3
Key Points of Interim Financial Results (Change from Projections)
Note: Figures are rounded down to nearest ¥0.1 billion.
[vs. FY06 Interim Results : Increase in sales and decrease in income]
- Increase in gas unit price due to gas rate adjustmentsystem (+)
- Increase in gas sales volume mainly in industrial sector (+)- Increase in gas resource cost (-)- Increase in labor cost by one-off expense
in actuarial differences (-)- Increase in depreciation by tax revisions (-)
[vs. projection as of 7/28 :Decrease in sales and decrease in income]
- Decrease in expenses by cost reduction effort (+)- Decrease both in gas sales and gas volume (-)
■Factors of change from FY06 1H (non consolidated)
[1] Decrease gas sales margin -11.4¥billion[2] Cost by one-off expense in actuarial
differences -11.5¥billion[3] Invest on new policies (strengthen
competitiveness against electricity and for safety measure) -3.7¥billion
[4] Increase other operating cost, etc. -1.8 ¥billion
[5] Improve in non-operating profit and loss +3.7 ¥billion
---------------------------------------------------------------------------------------- Ordinary Income -24.7 ¥billion ( 49.6 ¥billion →24.9¥billion)
4
1,373 1330
2,573 2765
1,514 1564
706807
0
2,000
4,000
6,000
FY06 Interim FY07 Interim
4.8%
increase from FY06 1H (+299million m3)
[total:6.47bil.m3]
Gas Sales Volume Projections
Wholesale Supply: +14.3% (+101mil. m3)-Increase in sales to other gas utilities through
developing new demand for those utilities and increasing demand of existing customers
Industrial Use: +7.5 % (+192mil. m3)-Developed new demand -Increased demand by existing customers
Residential Use: -3.2% (-44mil.m3)-Increase in number of customers-Decrease in hot water demand due to high temperatures
<Reasons for Changes in Gas Sales Volume from FY06 1H>
(Rounded off to nearest million m3)
Commercial & Other Use: +3.3 % ( +50mil. m3)-Increased demand for air conditioning due to high
temperatures
(Change from previous year and projections)
(45MJ/㎥)
[total:6.17 bil.m3]
million m
5
Reasons for Changes in Operating Income
FY06 Interim FY07 Interim
-Increase gas sales (+)-Rise in the unit price from rateadjustment system(+)
-Increase in gas resource cost (-)-Increase in operating cost such as labor cost, etc. (-)
[Energy Advance] - Increase in initial depreciation
by increasing orders of on-site energy service
Gas Sales -28.1
Gas Appliance sales
0
Related Construction
-0.2
Real Estate Rental
+0.5
Other Business
-2.0
(*)Total 63.4 (*)Total 93.3
54.5
1.84.33.5
(billion yen)
Gas Sales
Related Construction
Real Estate Rental
Gas Appliance sales
Other Business
-29.6 billion yen
Operating incomewithout internal transactions:
62.7
Operating incomewithout internal transactions:
33.1
*These figures do not include operating expenses that cannot be allocated to a specific segment.
82.6
1.83.8
5.5
-0.6
-29.9 billion
-0.8
6
As of Mar. 2007 As of Sep. 2007
-Increase in depreciation (effected by tax revision)
- Increase in number of affiliates
- Increase in inventory assets by valuation of gas resource (+)
- Decrease in accounts receivable due to seasonal factor (-)
Total 1,691.5
(Assets)
1,130.4
24.0
217.0
321.0
Reasons for Changes in Balance Sheet (Assets)
Investments
Tangible Fixed Assets
Intangible Fixed Assets
Current Assets
(billion yen)
Tangible Fixed Assets -13.4
Investments +14.6
Current Assets
-1.5Intangible
Fixed Assets -0.7
-1.0 billion yen
Total 1,692.6
1,117.0
23.3
231.7
319.4
7
-Issue of SBthe 28th domestic unsecured notes due 2027 [+20.0 billion yen]
-Treasury stock[-32.9billion yen]①Acquisition in first half
year of 200768.6 million shares,
-39.0 billion yen②Conversion of CB
+6.3 billion yen-Increase in earned surplus
[+12.0 billion yen]
(*)Total 1,691.5
609.9
295.1
786.4
Reasons for Changes in Balance Sheet (Liabilities & Net assets)
Fixed Liabilities
Current Liabilities
Shareholders’ Equity
(billion yen)
As of Mar. 2007 As of Sept. 2007
Fixed Liabilities
+8.5
Current Liabilities
+10.0
Shareholders’ Equity -19.6
-1.0 billion yen
(*)Total 1,692.6
601.4
285.1
806.0
[Cancellation of treasury stock] The board of directors approved the cancellation of treasury stock on Sep 25th,2007. 68.6 million shares (about 2.44% of issued shares before the cancellation) were cancelled on October 9th, 2007. The number of issued shares after the cancellation is 2,741,571,295 shares.
Outlook for FY07 projection (April 2007 – March 2008)
9
Key points for FY07 projection (change from projection)
◆Increase in sales , Decrease in income (compared with projection as of FY2007 1Q)
FX rate (yen/US$) 115.38 120.00 120.39 119.40 +4.02 -0.60 -0.99
(billion yen)
18
Note: Total Assets and Shareholders’ Equity and Equity ratio and Interest Bearing Debt in FY06 is shown as of Mar.2007 ROA=Net Income/Average Total Assets, ROE=Net Income/Average Shareholders’ Equity Operating Cash Flow = Net Income + Depreciation