Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q3 FY2009 Earnings Presentation

42 slides from Tokyo Electric Power's earnings presentation, Jan 29, 2010

  1. Slide 1: FY2009 3rd Quarter Financial Results

    TOKYO ELECTRIC POWER COMPANY TEPCO FY2009 3rd Quarter Financial Results (April 1, 2009 – December 31, 2009) Presentation Material Masaru Takei Managing Director January 29, 2010 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010

  2. Slide 2: Disclaimer

    TEPCO Disclaimer Regarding Forward-Looking Statements (Performance Projections) Certain statements in the following presentation regarding The Tokyo Electric Power Company’s business operations may constitute “forward-looking statements.” As such, these statements are not historical facts but rather

  3. Slide 3: Overview of FY2009 3rd Quarter Financial Results

    TEPCO Ⅰ．Overview of FY2009 3rd Quarter Financial Results The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010

  4. Slide 4: Key points of Results for FY2009 3rd Quarter

    Key points of Results for FY2009 3rd Quarter 1 TEPCO Overview  Both consolidated and non-consolidated operating revenues decreased because of a significant decrease in electricity sales volume due to the economic downturn and a drop in unit sales prices due to a negative impact of fuel cost adjustm

  5. Slide 5: FY2009 3rd Quarter Financial Results Summary (Consolidated and Non-consolidated)

    FY2009 3rd Quarter Financial Results Summary (Consolidated and Non-consolidated) 2 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Nine-Month Period Ended Comparison Dec. 31, 2009(A) Dec. 31, 2008(B) (A)-(B) (A)/(B)(%) Electricity sales v

  6. Slide 6: Performance Outlook for FY2009 - Electricity Sales Volume, Total Power Generated and Purchased

    Performance Outlook for FY2009 -1 - Electricity Sales Volume, Total Power Generated and Purchased 3 TEPCO Electricity Electricity Sales Sales Volume Volume (Units: Billion kWh, %) FY2009 FY2009 1st 2nd 1st 3rd First 9-Month Previous Projection Quarter Quarter Half Quarter Period Projection [Results

  7. Slide 7: Performance Outlook for FY2009 - Key Factors Affecting Performance and Financial Impact

    Performance Outlook for FY2009 - 2 - Key Factors Affecting Performance and Financial Impact 4 TEPCO FY2009 Key Factors Affecting Performance First 9-Month 4th Quarter Full Year 【Ref.】Previous Projection Actual Performance Projection Projection (as of Oct. 30) Electricity sales volume (billion kWh) 2

  8. Slide 8: Performance Outlook for FY2009 - Comparison with the previous projection

    Performance Outlook for FY2009 - 3 - Comparison with the previous projection 5 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Operating Operating Ordinary Net revenues income or loss income or loss income or loss FY2010 (Consolidated) 5,

  9. Slide 9: Performance Outlook for FY2009 - Comparison with the previous results

    Performance Outlook for FY2009 - 4 - Comparison with the previous results 6 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Operating Operating Ordinary Net revenues income or loss income or loss income or loss FY2009 ( Con solid ated ) 5

  10. Slide 10: Impact of the Shutdown of Kashiwazaki-Kariwa Nuclear Power Station

    Impact of the Shutdown of Kashiwazaki-Kariwa Nuclear Power Station 7 TEPCO (Unit: Billion yen) FY2009 【Ref.】FY2007 【Ref.】FY2008 First 9-month actual full year actual actual performance projection performance performance Total 206.0 262.0 615.0 649.0 Fuel expenses, etc. 206.0 262.0 420.0 585.0 Increa

  11. Slide 11: FY2009 3rd Quarter Financial Results (Detailed Information)

    TEPCO Ⅱ. FY2009 3rd Quarter Financial Results (Detailed Information) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010

  12. Slide 12: Statement of Income (Consolidated)

    Statement of Income (Consolidated) 8 TEPCO (Unit: Billion yen) Nine-Month Period Ended Comparison Dec. 31, 2009(A) Dec. 31, 2008(B) (A)-(B) (A)/(B) (%) Operating revenues 3,657.5 4,251.2 -593.6 86.0 Operating expenses 3,370.3 4,387.5 -1,017.2 76.8 Operating income or loss 287.2 -136.3 423.5 － Non-op

  13. Slide 13: Revenues Breakdown (Non-consolidated)

    Revenues Breakdown (Non-consolidated) 9 TEPCO (Unit: Billion yen) Nine-Month Period Ended Comparison Dec. 31, 2009(A) Dec. 31, 2008(B) (A)-(B) (A)/(B) (%) Ordinary revenues 3,537.3 4,101.3 -564.0 86.2 Decrease in electricity sales volume (-11.9 billion kWh) -¥210 billion Operating revenues 3,508.4 4

  14. Slide 14: Expenses Breakdown (Non-consolidated)

    Expenses Breakdown (Non-consolidated) 10 TEPCO (Unit: Billion yen) Nine-Month Period Ended Comparison Dec. 31, 2009(A) Dec. 31, 2008(B) (A)-(B) (A)/(B) (%) Ordinary expenses 3,347.6 4,346.1 -998.5 77.0 Operating expenses 3,245.3 4,237.6 -992.3 76.6 Operating expenses for electric power business 3,20

  15. Slide 15: Year-on-Year Comparison of Ordinary Expenses - 1 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 1 (Non-consolidated) 11 TEPCO Personnel expenses (¥346.4 billion to ¥367.9 billion) +¥21.4 billion Retirement benefits(¥49.6 billion to ¥70.6 billion) +¥21.0 billion Increase in amortization of actuarial difference (¥21.6 billion to ¥42.0 billion) ＜Amor

  16. Slide 16: Year-on-Year Comparison of Ordinary Expenses - 2 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 2 (Non-consolidated) 12 TEPCO Maintenance expenses (¥266.8 billion to ¥268.8 billion) +¥2.0 billion Generation related (¥118.6 billion to ¥120.8 billion) +¥2.2 billion Hydroelectric power (¥7.0 billion to ¥6.7 billion) Factors for Increase/Decrease -¥0.

  17. Slide 17: Year-on-Year Comparison of Ordinary Expenses - 3 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 3 (Non-consolidated) 13 TEPCO Power purchasing cost (¥630.3 billion to ¥517.4 billion) -¥112.8 billion Power purchased from other utilities (¥164.4 billion to ¥145.6 billion) Factors for Increase/Decrease -¥18.8 billion Power purchased from other utilit

  18. Slide 18: Year-on-Year Comparison of Ordinary Expenses - 4 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 4 (Non-consolidated) 14 TEPCO Interest paid (¥101.5 billion to ¥98.0 billion) -¥3.4 billion Lower average interest rate (First 9-month period in FY2008: 1.75% to First 9-month period in FY2009: 1.73%) -¥3.2 billion Decrease in average amount of interest

  19. Slide 19: Balance Sheets (Consolidated and Non-consolidated)

    Balance Sheets (Consolidated and Non-consolidated) 15 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Dec. 31, Mar. 31, Comparison Bond issued in FY2009 2009 (A) 2009 (B) (A)-(B) (A)/(B) (%) Issue amount Maturity Coupon rate Issue date (b

  20. Slide 20: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows 16 TEPCO (Unit: Billion yen) Nine-Month Period Ended Comparison Dec. 31, 2009(A) Dec. 31, 2008(B) (A)-(B) Cash flow from operating activities 762.2 250.0 512.2 Quarterly income / loss before income taxes and minority interests 254.6 -205.0 459.6 Depreciation and

  21. Slide 21: Free Cash Flow and its Application (Consolidated and Non-consolidated)

    Free Cash Flow and its Application (Consolidated and Non-consolidated) 17 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Nine-Month Period Ended Comparison Dec. 31, 2009(A) Dec. 31, 2008(B) (A)-(B) (Consolidated) 762.2 250.0 512.2 Cash f

  22. Slide 22: Segment Information

    Segment Information 18 TEPCO (Unit: Billion yen) Major subsidiaries in each segment (Unit: Billion yen) Nine-Month Period Ended Comparison Operating revenues Operating income Increase or Increase or Dec. 31, 2009(A) Dec. 31, 2008(B) (A)-(B) (A)/(B) (%) decrease decrease Operating revenues 3,657.5 4,

  23. Slide 23: Gas Supply Business

    Gas Supply Business 19 TEPCO (Unit: Billion yen) Nine-Month Period Ended Comparison 33rdrd Quarter Quarter Results Results Dec. 31, 2009(A) Dec. 31, 2008(B) (A)-(B) (A)/(B) (%) Operating revenues 39.7 51.8 -12.0 76.7 Operating expenses 36.4 59.3 -22.8 61.5 Operating income or loss 3.2 -7.5 10.7 － ap

  24. Slide 24: Reference: Monthly Breakdown of Electricity Sales

    【Reference】Monthly Breakdown of Electricity Sales 20 TEPCO - Electricity Sales Volume, Total Power Generated and Purchased (Units: Billion kWh, %) FY2008 FY2009 Electricity Electricity Sales Sales Volume Volume First 9-Month 1st Half 2nd Half Full Year 1st Half Oct. Nov. Dec. 3rd Quarter Period 51.8

  25. Slide 25: Reference: Recent demand trend of Large-scale Industries

    【Reference】Recent demand trend of Large-scale Industries 21 TEPCO  Reflecting continued decline in production levels, electricity sales volume for large-scale industrial customers decreased a substantial 11.8 percent compared with the same period of the previous year. 【Year-on-year Electricity Sale

  26. Slide 26: Reference: Performance of TEPCO's Marketing & Sales Activities

    【Reference】 Performance of TEPCO’s Marketing & Sales Activities 22 TEPCO ◆ Cumulative Expansion of Electricity Sales Volume ◆ Cumulative Number of All-Electric Homes （billion kWh） (thousand) 12 800 Commercial 10 billion kWh = Sales Target on MGMT Vision 201010.7 10 & Industrial 9.5 700 8 Residential

  27. Slide 27: Reference: Fuel Procurement and Consumption

    【Reference】Fuel Procurement and Consumption 23 TEPCO TEPCO’s TEPCO’s Fuel Fuel Procurement Procurement Policy Policy [LNG – for middle-load power supply] Based on procurement under bilateral long-term contracts, TEPCO seeks flexible measures including trades in spot markets as the need arises. [OIL

  28. Slide 28: Reference: Heads of Agreement for Wheatstone LNG Project

    【Reference】 Fuel Procurement： Execution of Heads of Agreement for Equity Investment in and LNG Offtake from the Wheatstone LNG Project 24 TEPCO  TEPCO  TEPCO hashas executed executed onon Dec. Dec. 5, 2009 two 5, 2009 two Heads Heads of of Agreements Agreements (HoAs) (HoAs) with with Chevron Chev

  29. Slide 29: Sale and Purchase Agreement regarding the PNG Project

    【Reference】 Fuel Procurement： Conclusion of a sale and Purchase Agreement regarding the PNG Project 25 TEPCO  On  On Dec. Dec. 7, 7, 2009, 2009, TEPCO TEPCO signed signed aa contract contract for for LNG LNG sale sale with with Papua Papua New New Guinea Guinea Liquefied Liquefied Natural Natural

  30. Slide 30: Eurus Energy HD's Capital Reinforcement

    【Reference】 Overseas Business： Eurus Energy HD’s Capital Reinforcement 26 TEPCO  Eurus  Eurus Energy Energy Holdings Holdings Corporation Corporation (“Eurus (“Eurus Energy”) Energy”) passed passed aa resolution resolution at at Board Board of of Directors Directors meeting meeting held held on on

  31. Slide 31: Selling the interest in Tarong North Power Project in Australia

    【Reference】 Overseas Business： Selling the interest “Tarong North Power Project” in Australia 27 TEPCO  TM  TM Energy Energy (Co -owned by (Co-owned by TEPCO TEPCO andand Mitsui Mitsui && Co., Co., Ltd.) Ltd.) completed completed the the sale sale of of its its 50% 50% share share of of interest i

  32. Slide 32: Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    TEPCO 【Reference】 The current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010

  33. Slide 33: Earthquake-Resistance and Safety

    TEPCO Overview of Status of Initiatives 28 Item Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Submission of inspection and Submitted Submitted Submitted Submitted Submitted Submitted Submitted evaluation plan Buildings （Initial submission date） (Jul. 18, 2008) (Sep. 18, 2008) (Jul. 18, 2008) (Sep

  34. Slide 34: Progress for the Restart of Operations at Kashiwazaki-Kariwa Unit 7

    Progress for the Restart of Operations at Kashiwazaki-Kariwa Unit 7 29 TEPCO ・Jun. 19: Completed the examination of overall plant functions (the exam started on May 8). ・Jun. 23: Report on testing and evaluation of overall plant functions submitted to the national authority (NISA). →Received the eva

  35. Slide 35: Progress for the Restart of Operations at Kashiwazaki-Kariwa Unit 6

    Progress for the Restart of Operations at Kashiwazaki-Kariwa Unit 6 30 TEPCO ・Jul. 3: Requests for permission to restart operations submitted to local governments of Niigata Prefecture, Kashiwazaki City and Kariwa Village. ・Aug.13: The Technical Committee stated that starting a test of overall plant

  36. Slide 36: Evaluation Procedure of soundness and safety at Unit 1

    TEPCO Evaluation Procedure of soundness and safety at Unit 1 31 Evaluation of Earthquake-Resistant Evaluation of Facility Soundness against the Niigataken Chuetsu-Oki Earthquake Capability and Safety Evaluation of Building and Structure Evaluation of Equipment and Evaluation of Earthquake Resistance

  37. Slide 37: Evaluation Procedure of soundness and safety at Unit 5

    TEPCO Evaluation Procedure of soundness and safety at Unit 5 32 Evaluation of Earthquake-Resistant Evaluation of Facility Soundness against the Niigataken Chuetsu-Oki Earthquake Capability and Safety Evaluation of Building and Structure Evaluation of Equipment and Evaluation of Earthquake Resistance

  38. Slide 38: Basic Equipment Inspections

    TEPCO Status of Progress at Each Unit in Facility Soundness Evaluation 33 ◆ Status of Progress of Basic Inspections (Equipment-Level Inspection and Evaluation) －Confirm the impact of an earthquake through testing, inspection and other means according to the particular features of each facility. As o

  39. Slide 39: Reinforcement Work

    【Earthquake-Resistance and Safety Improvement Initiatives】 TEPCO Reinforcement Work 34 ◆ TEPCO is conducting work as needed to reinforce the earthquake resistance of key facilities. ◆ Current schedule of work planned and in progress Note: Excludes preparatory work 2008 2009 2010 Jun. Jul. Aug. Sep.

  40. Slide 40: Testing Process of Overall Plant Functions at Unit 6

    【Reference】 TEPCO Testing Process of Overall Plant Functions at Unit 6 35 Sep. 10 Output reaches 100% and constant Aug. 25 Condenser vacuum elevated Aug. 30 Main turbine started operation at rated thermal output began Aug. 26 Control rod extraction begins Aug. 30 Generators begin operating in parall

  41. Slide 41: Governmental Inspection and Investigation System

    【Reference】 TEPCO Governmental Inspection and Investigation System 36 METI Cabinet Office and Nuclear and Industrial Nuclear and Industrial Nuclear Safety Safety Agency (NISA) Double check Commission Safety Division Report Subcommittee on Nuclear Facility Investigative Taskforce Nuclear Disaster Pre

  42. Slide 42: Niigata Prefecture's Original Assessment System

    【Reference】 TEPCO Niigata Prefecture’s Original Assessment System 37 The Technical Committee Niigata Prefectural ・Gives technical directions/advices to Pref. Directions Government Niigata Residents ・Interprets incidents and its impacts on the plants Advices ・Concludes technical and concrete counter-

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