Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — FY2010 Earnings Presentation

56 slides from Tokyo Electric Power's earnings presentation, May 20, 2011

  1. Slide 1: FY2010 Year-end Earnings Results

    FY2010 Year-end Earnings Results (April 1, 2010 – March 31, 2011) Presentation Material Masataka Shimizu President May 20, 2011 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

  2. Slide 2: Regarding Forward-Looking Statements (Performance Projections)

    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 predictions abou

  3. Slide 3: Overview of FY2010 Earnings Results

    Ⅰ．Overview of FY2010 Earnings Results The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

  4. Slide 4: Key Points of FY2010 Earnings Results

    Key Points of FY2010 Earnings Results 1 Overview  Both consolidated and non-consolidated operating revenues increased because of a 4.7% year-on-year increase in electricity sales volume due to the record-breaking hot summer and economic recovery from the recession.  Ordinary income grew both on co

  5. Slide 5: FY2010 Earnings Results Summary (Consolidated and Non-consolidated)

    FY2010 Earnings Results Summary (Consolidated and Non-consolidated) 2 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion Yen) FY2010 FY2009 Comparison (A) (B) (A) - (B) (A)/(B) % Electricity Sales Volume (billion kWh) 293.4 280.2 13.2 104.7 consolidate

  6. Slide 6: FY2010 Business Performance - Electricity Sales Volume, Total Power Generated and Purchased

    FY2010 Business Performance - 1 - Electricity Sales Volume, Total Power Generated and Purchased 3 Electricity Electricity Sales Sales Volume Volume (Units: Billion kWh, %) FY2010 1st 3rd 4th 2nd Full Year Half Quarter Quarter Half 57.01 25.06 33.53 58.59 115.60 [FY 2010 Results] Regulated segment (1

  7. Slide 7: FY2010 Business Performance - Comparison with Previous Fiscal Year Results

    FY2010 Business Performance – 2 - Comparison with Previous Fiscal Year Results 4 (Unit: Billion Yen) FY2010 Actual (A) FY2009 Actual (B) Comparison (A)-(B) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Operating Revenues 5,368.5 5,146.3 5,016.2 4,804.4 352

  8. Slide 8: FY2010 Business Performance - Comparison with Previous Projection

    FY2010 Business Performance – 3 - Comparison with Previous Projection 5 (Unit: Billion Yen) FY2010 Projection FY2010 Actual (A) (B) Comparison (A)-(B) (As of January 31, 2011) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Operating Revenues 5,368.5 5,146.3

  9. Slide 9: Financial Impact of March 11 Great East Japan Earthquake

    FY2010 Business Performance – 4 - Financial Impact of March 11 Great East Japan Earthquake 6 Impact Impact on on FY2010 FY2010 Statements Statements of of Income Income Extraordinary Loss from Natural Disaster ¥1,017.5 billion ○Expenses and/or losses for scrap and safety restoration at Fukushima Dai

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

    FY2010 Business Performance – 5 - Financial Impact of Kashiwazaki-Kariwa Nuclear Power Station Shutdown 7  For your information, normal operation of a 1.1 million kW-class unit, comparable to Kashiwazaki-Kariwa Units 2 through 4, with 100% utilization could help decrease expenses by approximately ¥

  11. Slide 11: Results of the Other Business Segments

    FY2010 Business Performance – 6 - Results of the Other Business Segments 8 Revenues （Billion yen） 400 (ex. Internal sales) <Business Performance Summary> 303.9 283.4 300 41.6 Information and Telecoms 41.6  Revenues: ¥41.6 billion (¥0.0 billion increase, year-on-year) 200 ＋【AT TOKYO Corporation】 Inc

  12. Slide 12: Key Factors Affecting Performance and Financial Impact

    FY2010 Business Performance - 7 - Key Factors Affecting Performance and Financial Impact 9 FY2011 FY 2010 Key Factors Affecting Performance 1st Half Full Year 1st Half Full Year Projection Projection Projection Actual Actual (as of Jan. 31) Electricity sales volume (billion kWh) ― ― 150.7 293.4 295.

  13. Slide 13: TEPCO's Dividend Policy

    TEPCO’s Dividend Policy 10 Dividend DividendOutlook Outlookfor forFY2010 FY2010and andFY2011 FY2011  TEPCO paid out ¥30 per share as its interim dividend of FY2010 to our shareholders.  Due to a great amount of net loss recorded in FY2010, TEPCO has decided not to pay out for FY2010 year-end divid

  14. Slide 14: TEPCO's Management Policy at Hand and Streamlining Policy -1

    TEPCO’s Management Policy at Hand and Streamlining Policy -1 11  Facing aftermath of the Great East Japan Earthquake and a series of the nuclear accidents at our Fukushima power stations, TEPCO is committed to taking every necessary step to restore safety at the site, apologize and explain nuclear

  15. Slide 15: TEPCO's Management Policy at Hand and Streamlining Policy -2

    TEPCO’s Management Policy at Hand and Streamlining Policy -2 12 2.2.Streamlining StreamliningPolicy Policy  To surely and steadily implement these important tasks, we sincerely take even drastic measures to further streamline our management through restructuring our assets and organizations focused

  16. Slide 16: Revision of Use of Proceeds Raised through Capital Increase

    【Reference】 Revision of Use of Proceeds Raised through Capital Increase in Last Autumn 13  The initial use of proceeds (totaled 446.8 billion yen) from a series of the offering was for “capital investment toward a low-carbon society” and “investment and financing in growth opportunities” under our

  17. Slide 17: Demand & Supply Outlook for Coming Summer

    【Reference】 Demand & Supply Outlook for Coming Summer (as of May. 13) 14  All Incorporating our customers’ power saving efforts and recovering industrial production, we project the highest daily peak demand in coming summer of 55GW at generation end, 5GW lower than that the record-breaking hot prev

  18. Slide 18: Our Measures to Increase Supply Capacity

    【Reference】 Our Measures to Increase Supply Capacity － Mid-to-long Term Measures 15  For the moment, TEPCO aims to resume stable power supply with further increasing supply capacity, including resumption of severely damaged thermal power plants and temporary installation of additional generators. 

  19. Slide 19: Progress status of the Roadmap towards Restoration from the Accident -1

    Progress status of the "Roadmap towards Restoration from the Accident 16 at Fukushima Daiichi Nuclear Power Station“ -1 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

  20. Slide 20: Progress status of the Roadmap towards Restoration from the Accident -2

    Progress status of the "Roadmap towards Restoration from the Accident 17 at Fukushima Daiichi Nuclear Power Station“ -2 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

  21. Slide 21: Progress status of the Roadmap towards Restoration from the Accident -3

    Progress status of the "Roadmap towards Restoration from the Accident 18 at Fukushima Daiichi Nuclear Power Station“ -3 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

  22. Slide 22: FY2010 Earnings Results (Detailed Information)

    Ⅱ. FY2010 Earnings Results (Detailed Information) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

  23. Slide 23: Statements of Income (Consolidated)

    Statements of Income (Consolidated) 19 (Unit: Billion yen) FY2010 FY2009 Comparison (A) (B) (A)-(B) (A)/(B) (%) Operating Revenues 5,368.5 5,016.2 352.2 107.0 See Page 29 for details of business Operating Expenses 4,968.9 4,731.8 237.0 105.0 performance by segment Operating Income 399.6 284.4 115.1

  24. Slide 24: Revenues Breakdown (Non-consolidated)

    Revenues Breakdown (Non-consolidated) 20 (Unit: Billion yen) FY2010 FY2009 Comparison (A) (B) (A)-(B) (A)/(B) (%) Ordinary Revenues 5,203.5 4,852.7 350.8 107.2 Operating Revenues 5,146.3 4,804.4 341.8 107.1 Operating Revenues from electric power business 5,064.6 4,733.2 331.3 107.0 Electricity sales

  25. Slide 25: Expenses Breakdown (Non-consolidated)

    Expenses Breakdown (Non-consolidated) 21 (Unit: Billion yen) FY2010 FY2009 Comparison (A) (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 4,932.4 4,694.0 238.3 105.1 Operating Expenses 4,789.6 4,554.5 235.1 105.2 Operating Expenses for electric power business 4,710.4 4,487.5 222.8 105.0 Personnel 431.1 48

  26. Slide 26: Year-on-Year Comparison of Ordinary Expenses – 1

    Year-on-Year Comparison of Ordinary Expenses – 1 (Non-consolidated) 22 Personnel expenses (¥481.3 billion to ¥431.1 billion) -¥50.1 billion Salary and benefits (¥310.5 billion to ¥299.4 billion) -¥11.1 billion Retirement benefits (¥84.2 billion to ¥46.8 billion) -¥37.4 billion Decrease in amortizati

  27. Slide 27: Year-on-Year Comparison of Ordinary Expenses – 2

    Year-on-Year Comparison of Ordinary Expenses – 2 (Non-consolidated) 23 Maintenance expenses (¥373.9 billion to ¥412.0 billion) +¥38.1 billion Generation related (¥166.3 billion to ¥188.7 billion) +¥22.4 billion Hydroelectric power (¥10.3 billion to ¥12.5 billion) +¥2.1 billion Thermal power (¥70.8 b

  28. Slide 28: Year-on-Year Comparison of Ordinary Expenses – 3

    Year-on-Year Comparison of Ordinary Expenses – 3 (Non-consolidated) 24 Power purchasing cost (¥722.4 billion to ¥703.5 billion) -¥18.9 billion Power purchased from other utilities (¥199.5 billion to ¥201.2 billion) Factors for Increase/Decrease +¥1.6 billion Power purchased from other suppliers (¥52

  29. Slide 29: Balance Sheets (Consolidated and Non-consolidated)

    Balance Sheets (Consolidated and Non-consolidated) 25 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Mar. 31, Mar. 31, Comparison Bonds issued in FY2010 2011 (A) 2010 (B) (A)-(B) (A)/(B) (%) (Consolidated) 14,790.3 13,203.9 1,586.3 112.0 Total

  30. Slide 30: Schedules for Corporate Bond Redemption

    【Reference】 Schedules for Corporate Bond Redemption 26 Amount at Maturity (as of Mar.31, 2011) (billion) 800 747.9 Foreign currency-denominated 700 Domestic 625.9 600 585.5 548.9 29.0 134.2 500 446.4 438.1 451.8 400 366.8 25.0 300 282.5 210.0 200 160.0 100 30.0 35.0 20.0 25.0 0 2011 2012 2013 2014 2

  31. Slide 31: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 27 (Unit: Billion yen) FY2010 FY2009 Comparison (A) (B) (A)-(B) Cash flow from operating activities 988.7 988.2 0.4 Income / loss before income taxes and minority interests -766.1 223.4 -989.6 Depreciation and amortization 702.1 759.3 -57.2 Increase / decrease i

  32. Slide 32: Capital Expenditures (Consolidated and Non-consolidated)

    Capital Expenditures (Consolidated and Non-consolidated) 28 (Unit: Billion Yen) FY2010 Actual FY2009 Actual Comparison (A) (B) (A)-(B) Hydroelectric/Renewable energy generation (Non-consolidated) 17.9 11.0 6.9 Thermal power generation (Non-consolidated) 122.9 46.1 76.7 Nuclear power generation (Non-

  33. Slide 33: Segment Information

    Segment Information 29 (Unit: Billion yen) Major subsidiaries in each segment (Unit: Billion yen) FY2010 FY2009 Comparison Operating Revenues Operating Income (A) (B) (A)-(B) (A)/(B) (%) Change Change Operating Revenues 5,368.5 5,016.2 352.2 107.0 Information and Telecommunications 5,064.6 4,733.3 3

  34. Slide 34: Gas Supply Business

    【Reference】 30 Gas Supply Business Operating Operating Performance Performance (Billion yen) Revenues Operating Income 76.1 66.7 66.0 58.0 <FY2010 Actual Performance> Operating revenues: Increased ¥8.6 billion to ¥66.7 billion, reflecting -0.7 2.2 -0.5 -2.0 a sales volume increase by 60,000 tons and

  35. Slide 35: Overseas Business

    【Reference】 31 Overseas Business TEPCO % Company or Project Name1 Location Output Start of commercial operation, etc. Investment2 Ownership ①Chang Bin & Fong Der Project Taiwan ¥5.2 billion ( 19.5% ) 0.49GW, 0.98GW Commenced operations in Mar. 2004 ①Starbuck Project Taiwan ¥2.1 billion ( 22.7% ) 0.4

  36. Slide 36: Seasonal Breakdown of Electricity Sales

    【Reference】 Seasonal Breakdown of Electricity Sales - Sales Volume, Total Power Generated and Purchased 32 (Units: Billion kWh, %) FY2009 FY2010 Electricity Electricity Sales Sales Volume Volume 3rd 4th 1st Half 2nd Half Full Year 1st Half Jan. Feb. Mar. 2nd Half Full Year Quarter Quarter 50.63 56.8

  37. Slide 37: Recent Demand Trend of Large-scale Industries

    【Reference】 33 Recent Demand Trend of Large-scale Industries  While annual electricity sales volume to large-scale industrial customers grew 4.6% year on year, the volume sold in this March alone sharply dropped 17.6% due to the March 11 Great East Japan Earthquake. 【Year-on-year Electricity Sales

  38. Slide 38: Fuel Consumption and Procurement

    【Reference】 Fuel Consumption and Procurement 34 Fuel Fuel consumption consumption data data and and projection projection 【Reference】 FY2007 FY2008 FY2009 FY2010 FY2010 FY2011 Actual Actual Actual Actual Supply Plan Projection LNG (million tons) 19.87 18.97 18.51 19.46 16.80 － Oil (million kl) 9.99

  39. Slide 39: Historical Prices of CIF Crude Oil, Fuel Coal and LNG

    【Reference】 Historical Prices of CIF Crude Oil, Fuel Coal and LNG 35 ($/b・t) ($/t) 160 900 Crude Oil 140 800 Fuel Coal LNG (Right-hand Scale) 700 120 600 100 500 80 400 60 300 40 200 20 100 Note: The numbers above are calculated by TEPCO based on CIF stats and temporary exchange rates. 0 0 Apr- May

  40. Slide 40: The Current Status of Fukushima Daiichi & Daini Nuclear Power Stations and Future Initiatives

    【Reference】 The Current Status of Fukushima Daiichi & Daini Nuclear Power Stations and Future Initiatives (As of May 19, 2011 unless otherwise noted) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

  41. Slide 41: Overview of March 11 Great East Japan Earthquake

    Overview of March 11 Great East Japan Earthquake 36  Date & Time: 2:46PM on Friday March 11, 2011  Epicenter: Offshore Sanriku coast (northern latitude of 38 degrees, east longitude of 142.9), 24km in depth  Magnitude: 9.0M  Seismic Intensity (in Japanese Scale): Level 7: Kurihara City (Miyagi P

  42. Slide 42: Overview of Incidents at Units of Fukushima Daiichi NPS

    Overview of Incidents at Units of Fukushima Daiichi NPS 37  All the operating units were automatically “shutdown” with all control rods inserted immediately after the earthquake occurred. Nuclear reaction was successfully stopped.  Almost all of the “Cooling” functions at reactors and spent fuel p

  43. Slide 43: Current Situation and Status at Fukushima Daiichi NPS

    Current Situation and Status at Fukushima Daiichi NPS 38  At Units 1 through 3, we continually conduct discharging fresh water into pressure vessels in order to cool nuclear fuels inside by temporary motor pumps. The level of coolant in the reactors is negative but stable.  To cool spent nuclear f

  44. Slide 44: Current Situation and Status at Fukushima Daini NPS

    Current Situation and Status at Fukushima Daini NPS 39  All the units were automatically “shutdown” immediately after the earthquake occurred.  At Unit 1, 2 and 4, although external power supply continued, heat removal functions for reactors of the units were lost by tsunami. Later, the functions

  45. Slide 45: Site Map of Fukushima Daiichi NPS

    【Reference】 Site Map of Fukushima Daiichi NPS 40 Water Discharge Channel Ultra High-Voltage Switch 6 Intake Futaba Town 66kV Switch Canal Approx. 1.5 million ㎡ 5 Solid Radioactive Waste Storage 1,2 e# Border between the towns Lin er ow 2 1, ri P s# o Service om ine n Building Loading Breakwater u L

  46. Slide 46: Summary of Analysis on Tsunami Striking the Nuclear Power Stations

    【Reference】 Summary of Analysis on Tsunami Striking the Nuclear Power Stations 41  TEPCO had taken enough countermeasures against assumed highest tsunami water level of O.P.+5.7 meters or 18’8” at Fukushima Daiichi NPS revised in 2002 by Japan Society of Civil Engineers.  At Fukushima Daiichi, alm

  47. Slide 47: Inundated and Inflowed Areas at the Nuclear Power Stations

    【Reference】 Inundated and Inflowed Areas at the Nuclear Power Stations 42 Fukushima Fukushima Daiichi Daiichi Fukushima Fukushima Daini Daini ⑥ ⑤ inundated inflowed ④ ③ ① ② ② ③ ④ ① (C) GeoEye The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

  48. Slide 48: Nuclear Damage Compensation Scheme in Japan -1

    【Reference】 Nuclear Damage Compensation Scheme in Japan -1 43 1. Purposes of Nuclear Damage Compensation Scheme  Legal Protection to Victims (§1 of the Nuclear Damage Compensation Law) ・Facilitating victims’ compensation claims and securing enough compensation or indemnity for them  Contribution t

  49. Slide 49: Nuclear Damage Compensation Scheme in Japan -2

    【Reference】 Nuclear Damage Compensation Scheme in Japan -2 44 4. Illustration of Nuclear Operator’s Responsibility and Liability on the Law ←Range of Operator's Compensation (Unlimited)→ Nuclear Operator's Liability - Liability without Fault, Unlimited (Governmental support in need) Measures by Gove

  50. Slide 50: Governmental Supporting Scheme for the Nuclear Damage Compensation

    【Reference】 Governmental Supporting Scheme for the Nuclear Damage Compensation 45  On May 13, Japanese government officially announced “Governmental Supporting Scheme for the Damages Caused by Nuclear Accidents”. 【Essentials to be secured】 1. All possible measures to ensure prompt and appropriate c

  51. Slide 51: The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    【Reference】 The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives (As of May 10, 2011 unless otherwise noted) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

  52. Slide 52: Earthquake-Resistance and Safety

    Overview of Status of Initiatives 46 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. 18,

  53. Slide 53: Basic Equipment Inspections

    Status of Progress at Each Unit in Facility Soundness Evaluation 47 ◆ Status of Progress in 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 of May

  54. Slide 54: Reinforcement Work

    【Earthquake-Resistance and Safety Improvement Initiatives】 Reinforcement Work 48 ◆ TEPCO is conducting works as needed to reinforce earthquake-resistant capabilities of key facilities. ◆ Current schedule of works planned and in progress Note: Excludes preparatory work 2009 Year 2010 Year 2011 Oct. N

  55. Slide 55: Outline of Emergency Safety Measures Kashiwazaki-Kariwa NPS

    【Reference】 Outline of Emergency Safety Measures Kashiwazaki-Kariwa NPS 49 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

  56. Slide 56: Outline of Measures to Secure Safety at Kashiwazaki-Kariwa NPS

    【Reference】 Outline of Measures to Secure Safety at Kashiwazaki-Kariwa NPS 50 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

Tokyo Electric Power Company Holdings — FY2010 Earnings Presentation on 6ix