Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q3 FY2022 Earnings Presentation

50 slides from Tokyo Electric Power's earnings presentation, Feb 1, 2023

  1. Slide 1: FY2022 3rd Quarter Financial Results

    FY2022 3rd Quarter Financial Results (April 1 –December 31, 2022) Tokyo Electric Power Company Holdings, Inc. ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  2. Slide 2: ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

    ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  3. Slide 3: Overview of FY2022 3rd Quarter Financial Results

    Overview of FY2022 3rd Quarter Financial Results (Released on February 1, 2023) Regarding Forward-Looking Statements Certain statements in the following presentation regarding TEPCO Group’s business operations may constitute “forward-looking statements.” As such, these statements are not historical

  4. Slide 4: Key Points of FY2022 3rd Quarter Financial Results

    Key Points of FY2022 3rd Quarter Financial Results 1 <FY2022 3rd Quarter Financial Results> ➢ Operating revenue increased due to an increase in fuel cost adjustments resulting from a surge in fuel prices, etc. ➢ Ordinary income/loss decreased due mainly to a negative turn in the effects of the time-

  5. Slide 5: Consolidated Financial Results

    1. Consolidated Financial Results 2 (Unit: Billion Yen) FY2022 FY2021 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Operating Revenue 5,512.6 3,503.5 2,009.0 157.3 Operating Income/Loss -273.6 88.0 -361.7 - Ordinary Income/Loss -353.8 72.2 -426.1 - Extraordinary Income/Loss -297.7 -52.8 -24

  6. Slide 6: (Reference) Key Factors Affecting Performance

    (Reference) Key Factors Affecting Performance 3 Area demand (Unit: Billion kWh) FY2022 FY2021 Comparison Apr- Dec(A) Apr- Dec(B) (A)-(B) (A)/(B) (%) Area demand 194.9 192.7 2.1 101.1 Foreign Exchange Rate/CIF FY2022 FY2021 (A)-(B) Apr-Dec(A) Apr-Dec(B) Foreign Exchange rate (Interbank, yen/dollar) 1

  7. Slide 7: Overview of Each Company

    2. Overview of Each Company 4 (Unit: Billion Yen) FY2022 FY2021 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Operating Revenue 5,512.6 3,503.5 2,009.0 157.3 TEPCO Holdings (HD) 378.3 365.4 12.8 103.5 TEPCO Fuel & Power (FP) 2.9 3.8 -0.9 75.5 TEPCO Power Grid (PG) 1,862.6 1,336.1 526.4 139.

  8. Slide 8: Points of Each Companies

    3. Points of Each Companies 5 ➢ HD：Ordinary income decreased due mainly to a decrease in received dividends from core operating companies. ➢ FP：Ordinary income decreased due mainly to a negative turn in the effects of the time-lag from the fuel cost adjustment system at JERA. ➢ PG：Ordinary income de

  9. Slide 9: Consolidated Extraordinary Income/Loss

    4. Consolidated Extraordinary Income/Loss 6 (Unit: Billion Yen) FY2022 FY2021 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) Extraordinary Income 186.0 29.8 156.1 Gain on sale of shares of subsidiaries and associates ※1 123.3 - 123.3 Gain on sale of non-current assets ※2 62.7 - 62.7 Grants-in-Aid from t

  10. Slide 10: Consolidated Financial Position

    5. Consolidated Financial Position 7 ➢ Total assets balance increased by 351.3 billion yen due mainly to an increase in accounts receivable. ➢ Total liabilities balance increased by 854.5 billion yen due mainly to an increase in provision for nuclear damage compensation. ➢ Total net assets balance d

  11. Slide 11: (Reference) Year-on-Year Comparisons for TEPCO Holdings

    (Reference) Year-on-Year Comparisons for TEPCO Holdings 8 Ordinary income/loss Profit Structure (Units: Billion Yen) Profit is dividend income, decommissioning charges profit, management consultation fees, wholesale Decrease in power sales of nuclear power, etc. received dividends -35.7 Year-on-Year

  12. Slide 12: (Reference) Year-on-Year Comparisons for TEPCO Fuel & Power

    (Reference) Year-on-Year Comparisons for TEPCO Fuel & Power 9 Ordinary income/loss Profit Structure (Units: Billion Yen) Main profit is profit of entities accounted for using equity method, such as generation business at JERA. FY2021 Apr-Dec -9.3 Year-on-Year Timing Impact (JERA equity impact) (Unit

  13. Slide 13: (Reference) Year-on-Year Comparisons for TEPCO Power Grid

    (Reference) Year-on-Year Comparisons for TEPCO Power Grid 10 Ordinary income/loss Profit Structure (Units: Billion Yen) ・Include the impact of Operating revenue is mainly transmission revenue, the last resort supply and this is fluctuated by area demand. Increase in ・Electricity procurement expenses

  14. Slide 14: (Reference) Year-on-Year Comparisons for TEPCO Energy Partner

    (Reference) Year-on-Year Comparisons for TEPCO Energy Partner 11 Ordinary income/loss Profit Structure (Units: Billion Yen) Operating revenue is mainly electricity sales revenue, and Impact of this is fluctuated by electricity sales volume. market price Expenses are mainly power purchasing costs and

  15. Slide 15: (Reference) Year-on-Year Comparisons for TEPCO Renewable Power

    (Reference) Year-on-Year Comparisons for TEPCO Renewable Power 12 Ordinary income/loss (Units: Billion Yen) Profit Structure ・ Include the impact from revision of depreciation method Profit is mainly wholesale power sales of hydroelectric and new energies. Expenses is mainly for depreciation and rep

  16. Slide 16: FY2022 Consolidated Performance Forecast

    6. FY2022 Consolidated Performance Forecast 13 （Unit: Billion yen) FY2022 FY2021 Results Projections (A)-(B) (B) (A) Operating revenue 7,931.0 5,309.9 + 2,621.0 Operating income/loss - 488.0 46.2 - 534.0 Ordinary income/loss - 502.0 44.9 - 547.0 Extraordinary income/loss 186.0 - 29.8 + 216.0 Net Inc

  17. Slide 17: (Reference) FY2022 Consolidated Performance Forecast (Key Factors Affecting Performance)

    (Reference) FY2022 Consolidated Performance Forecast 14 (Key Factors Affecting Performance) （Unit: Billion kWh) FY2022 Comparison FY2021 Results Projections (B) (A)-(B) (A)/(B)（％） (A) Total Electricity sales volume 244.2 233.8 +10.4 104.5 Retail Electricity sales volume 181.5 186.5 -5.0 97.3 Wholesa

  18. Slide 18: (Reference) FY2022 Consolidated Performance Forecast (Overview of Each Company)

    (Reference) FY2022 Consolidated Performance Forecast 15 (Overview of Each Company) (Units: Billion Yen) FY2022 Projections FY2021 Results (A)-(B) (A) (B) Operating R evenu e 7931.0 5,309.9 + 2,621.0 TEPCO Holdings 667.0 620.0 + 47.0 TEPCO Fuel & Power 4.0 5.1 -1.0 TEPCO Power Grid 2,528.0 1,962.3 +

  19. Slide 19: (Reference) Consolidated Year-on-Year performance comparison (Overview of Each Company)

    (Reference) Consolidated Year-on-Year performance comparison 16 (Overview of Each Company) ➢ HD：Ordinary income decreased due mainly to a decrease in received dividends from core companies. ➢ FP：Ordinary income increased due to a turnaround in JERA’s situation. ➢ PG：Ordinary income decreased due mai

  20. Slide 20: Supplemental Material

    Supplemental Material ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  21. Slide 21: Table of Contents

    Table of Contents Status of response to address the series of incidents including a nuclear Financial Results Detailed Information material protection incident Status of response to address the series of incidents including a nuclear material Consolidated Statements of Income 17 protection incident

  22. Slide 22: FY2022 3rd Quarter Financial Results Detailed Information

    FY2022 3rd Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  23. Slide 23: Consolidated Statements of Income

    Consolidated Statements of Income 17 (Unit: Billion Yen) FY2022 FY2021 Comparison Apr-Dec(A) Apr-Dec(B) (A)-(B) (A)/(B) (%) Operating Revenue 5,512.6 3,503.5 2,009.0 157.3 Operating Expenses 5,786.2 3,415.4 2,370.7 169.4 Operating Income / Loss -273.6 88.0 -361.7 － Non-operating Revenue 4.7 25.3 -20

  24. Slide 24: Grants-in-aid from NDF and Expenses for Nuclear Damage Compensation

    The status of Grants-in-aid from Nuclear Damage Compensation and Decommissioning Facilitation 18 Corporation and Expenses for Nuclear Damage Compensation (Unit: Billion Yen) FY2022 Cumulative Item FY2010 to FY2021 Apr-Dec Amount ◇Grants-in-aid from Nuclear Damage Compensation and Decommissioning Fac

  25. Slide 25: Consolidated Balance Sheets

    Consolidated Balance Sheets 19 (Unit: Billion Yen) <Interest-bearing debt outstanding> (Unit: Billion Yen) Comparison Dec. 31 Mar. 31 Dec. 31 Mar. 31 (A)-(B) 2022 (A) 2022 (B) 2022 (A) 2022 (B) (A)-(B) (A)/(B) (%) Bonds 3,350.4 3,100.4 250.0 Total Assets 13,204.8 12,853.5 351.3 102.7 Long-term Debt

  26. Slide 26: Key Factors Affecting Performance

    Key Factors Affecting Performance 20 ※１ Total of EP consolidated (EP/TCS/PinT) and PG (islands, etc.) Key Factors Affecting Performance（Results） ※２ Total (excluding indirect auctions) of EP consolidated (EP/TCS/PinT), PG (including inter-regional), and RP consolidated (RP/Tokyo Electric Generation)

  27. Slide 27: Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated

    Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated 21 Retail Electricity Sales Volume（EP consolidated） Unit: Billion kWh FY2022 Apr-Sep Oct Nov Dec Oct-Dec Apr-Dec Lighting 27.45 4.01 4.12 4.92 13.05 40.50 Power 62.12 9.54 9.10 9.46 28.10 90.22 Total 89.57 13.55 13.21 14

  28. Slide 28: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 22 Amount at Maturity (As of Dec. 31, 2022) (Billion Yen) TEPCO Public Bond TEPCO Power Grid Public Bond TEPCO Renewable Power Public Bond (FY) Note: The amount redeemed for Apr. - Dec. of fiscal 2022 totaled 170.0 billion yen. ©Tokyo Electric Power Company Holdi

  29. Slide 29: Application for Raising the Regulated Electricity Rates, etc.

    Application for Raising the Regulated Electricity Rates, etc. ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  30. Slide 30: Overview of the Revision of the Regulated Rates and the Low-voltage Liberalized Rates

    Overview of the Revision of the Regulated Rates and the Low-voltage Liberalized Rates 23 ✓ On January 23, 2023, TEPCO EP announced that retail electricity rates for low-voltage customers (regulated and liberalized) will be revised going into effect on June 1, 2023. ■ For the regulated rates*1, an ap

  31. Slide 31: Figures upon which calculations are made / Source for calculating the fuel cost adjustments

    Figures upon which calculations are made / Source for calculating the fuel cost adjustments 24 ✓ Since the last rate revision, TEPCO EP has been increasing the proportion of the latest coal-fired thermal power plants while maintaining high-efficiency LNG-fired thermal power as the primary source of

  32. Slide 32: Reflecting the Nuclear Operation Plan

    Reflecting the Nuclear Operation Plan 25 ✓ Calculations for revised rates for the low-voltage rate plans included the restart of the Kashiwazaki-Kariwa Nuclear Power Station in addition to further streamlining to reduce the customers’ burden. A version of the Kashiwazaki-Kariwa Nuclear Power Station

  33. Slide 33: Initiatives to Reduce the Burden on Our Customers -1

    Initiatives to Reduce the Burden on Our Customers -1 26 ✓ TEPCO EP is a participant of the national government’s measures to mitigate the effects of the sharp increase in electricity and gas. Electricity and gas prices for January to September 2023 (amount confirmed in meter checks from February to

  34. Slide 34: Initiatives to Reduce the Burden on Our Customers -2

    Initiatives to Reduce the Burden on Our Customers - 2 27 ✓ Starting in next fiscal year (FY2023), we will start a program to introduce equipment that contributes to the realization of a carbon neutral society together with our customers, as a measure to reduce their burden of the electricity bill on

  35. Slide 35: Status of response to address the series of incidents including a nuclear material protection incident

    Status of response to address the series of incidents including a nuclear material protection incident ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  36. Slide 36: 3 Verification Policies Approved by the NRA and TEPCO's Response Policy

    Status of response to address the series of incidents including a nuclear material protection incident 28 Nuclear reform measures ✓ Based on the Improvement Report for the Inappropriate Use of ID Cards and the Partial Loss of Function of the Physical Protection Facilities at the Kashiwazaki Kariwa N

  37. Slide 37: 36 countermeasures included in the improvement measure plan

    Status of response to address the series of incidents including a nuclear material protection incident 29 36 countermeasures included in the improvement measure plan ✓ Improvement measures are all at the implementation stage of the assessment stage. Effectiveness assessments are being conducted on t

  38. Slide 38: Concrete measures (Verification Policy 1 and 2)

    Status of response to address the series of incidents including a nuclear material protection incident 30 Concrete measures ( Verification Policy 1 and 2 ) Verification Policy 1 Response to 【Realize robust physical protection】 ➢ Various equipment have been introduced including duplexed biometric Hav

  39. Slide 39: Concrete measures (Verification Policy 3 / Reference)

    Status of response to address the series of incidents including a nuclear material protection incident 31 Concrete measures ( Verification Policy 3 / Reference ) Verification Policy 3 Response to 【Build a mechanism to make sure improvements are not temporary】 ➢ Management will identify deteriorating

  40. Slide 40: General inspections implemented after discovering partially incomplete safety measure renovations

    General inspections implemented after discovering partially incomplete safety measure renovations 32 ✓ Around of the comprehensive inspections of incomplete renovations that had been implemented under a project structure was completed in September 20, 2022 and corrective works have been completed. ✓

  41. Slide 41: The Current Status of Fukushima Daiichi Nuclear Power Station and Future Initiatives

    The Current Status of Fukushima Daiichi Nuclear Power Station and Future Initiatives ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  42. Slide 42: Current Situation and Status of Units

    Current Situation and Status of Units 1 through 4 33 ✓ Spent fuel removal from Units 3 & 4 is complete. ✓ Currently, preparation for Units 1 & 2 spent fuel removal and Units 1-3 fuel debris retrieval is being conducted. Main decommissioning work and steps ✓Please visit our website for latest informa

  43. Slide 43: Milestones and progress in the 5th revision of Mid-and-Long-Term Roadmap

    Milestones and progress in the 5th revision of Mid-and-Long-Term Roadmap(December 2019) 34 *To accommodate the effects of COVID-19 and to ensure the safety and reliability of the work, Maintain Overall Framework of Decommissioning Schedule the trial removal was rescheduled to start in the second hal

  44. Slide 44: Fuel Debris Retrieval Schedule and Process

    Fuel Debris Retrieval Schedule and Process Based upon the Mid-to-Long Term Decommissioning Implementation Plan 2022 35 ✓ The Decommissioning Long-term Implementation Plan 2022 was published on March 31, 2022 with the progress made in decommissioning work and new challenges identified in FY2021. ✓ Re

  45. Slide 45: Contaminated Water Measures

    Contaminated Water Measures 36 ✓ Progress is being made on the three contaminated water initiatives detailed in the 5th revision of the Mid-and-long-term Roadmap (December 2019). (1) Initiative to promote contaminated water measures following the three basic policies (1) Remove the contamination sou

  46. Slide 46: Response Regarding the Handling of ALPS Treated Water - 1

    TEPCO Holdings’ Response Regarding the Handling of ALPS Treated Water – 1 TEPCO Holdings’ Approach to the Discharge of ALPS Treated Water 37 ✓ The “Basic Policy on handling of ALPS treated water at the Tokyo Electric Power Company Holdings’ Fukushima Daiichi Nuclear Power Station” (hereinafter gover

  47. Slide 47: Response Regarding the Handling of ALPS Treated Water - 2

    TEPCO Holdings’ Response Regarding the Handling of ALPS Treated Water – 2 Status of Review Regarding Design and Operation of Necessary Facilities and Plan 38 ✓ In August 2021, the state of discussions on the handling of ALPS treated water was announced. In December 2021, the details of the discussio

  48. Slide 48: Other Initiatives

    Other Initiatives ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  49. Slide 49: Main Efforts to Increase Corporate Value -1

    Main Efforts to Increase Corporate Value -1 39 ＜TEPCO Holdings＞ Oct. 18, 2022 Signed a joint research agreement with Pertamina Power Indonesia on a green hydrogen and green ammonia development in Indonesia Oct. 26, 2022 Launched the Ogijima Neighborhood Council for discussing the use of land in the

  50. Slide 50: Main Efforts to Increase Corporate Value -2

    Main Efforts to Increase Corporate Value -2 40 ＜TEPCO Energy Partner＞ Oct. 19, 2022 Energy Partner was given 5 stars out of five in both the retail electricity division and retail city gas division as a company that is actively disseminating information about energy conservation in the FY2022 Energy

Tokyo Electric Power Company Holdings — Q3 FY2022 Earnings Presentation on 6ix