Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — FY2019 Earnings Presentation

46 slides from Tokyo Electric Power's earnings presentation, May 15, 2020

1. Slide 1: FY2019 Financial Results

   FY2019 Financial Results (April 1, 2019 – March 31, 2020) 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 FY2019 Financial Results

   Overview of FY2019 Financial Results (Released on May 15, 2020) 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 facts but rather

4. Slide 4: Key Points of FY2019 Financial Results

   Key Points of FY2019 Financial Results 1 < FY2019 Financial Results >  Operating revenue decreased due to decreases in electricity sales volume.  Ordinary income/loss decreased due to decreases in operating revenue despite continual cost reductions made by all Group companies.  Net income decreas

5. Slide 5: Consolidated Financial Results

   1. Consolidated Financial Results 2 (Unit: Billion kWh) FY2019 FY2018 Comparison (A) (B) (A)-(B) (A)/(B) (% ) Electricity Sales Volume 222.3 230.3 -8.0 96.5 (Unit: Billion Yen) FY2019 FY2018 Comparison (A) (B) (A)-(B) (A)/(B) (% ) Operating Revenue 6,241.4 6,338.4 -97.0 98.5 Operating Income/Loss 21

6. Slide 6: Points of Each Company

   2. Points of Each Company 3 <TEPCO Holdings>  Ordinary income decreased due to factors including decreased wholesale power sales to TEPCO Energy Partner, etc. <TEPCO Fuel & Power>  Ordinary income increased due to factors including a gain incurred by fuel cost adjustment system time lag into incom

7. Slide 7: Overview of Each Company

   3. Overview of Each Company 4 ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

8. Slide 8: Consolidated Extraordinary Income/Loss

   4. Consolidated Extraordinary Income/Loss 5 (Unit: Billion Yen) FY2019 FY2018 Comparison ○ Overview of Extraordinary Income ◆ Grants-in-aid from NDF (A) (B) (A)-(B) Apply for changes in grant amounts based on stipulations Extraordinary Income 414.9 159.8 255.1 on March 30, 2020. Grants-in-Aid from N

9. Slide 9: Extraordinary Loss on Disaster and Impairment Loss

   ５．Extraordinary Loss on Disaster and Impairment Loss 6  Recorded operational expenses for fuel debris retrieval preparation based on the Mid-to-Long Term Decommissioning Implementation Plan 2020 announced on March 27, 2020 as extraordinary loss on disaster.  Fixed assets for which the recovery of

10. Slide 10: Consolidated Financial Position

    6. Consolidated Financial Position 7  Total assets balance decreased by 799.6 billion yen primarily due to the transfer of thermal-power-generation facilities to JERA.  Total liabilities balance decreased by 812.8 billion yen primarily due to the transfer of TEPCO Fuel & Power’s loans to JERA.  T

11. Slide 11: Reference: Key Factors Affecting Performance (Results)

    <Reference> Key Factors Affecting Performance (Results) 8 Area Demand (Unit: Billion kWh) Comparison FY2019 (A) FY2018 (B) (A)–(B) (A)/(B) (％) Area Demand 269.8 274.7 -4.9 98.2 Foreign Exchange Rates / CIF FY2019(A) FY2018 (B) (A)–(B) Foreign Exchange Rate 108.7 110.9 -2.2 (Interbank, yen/dollar) Cr

12. Slide 12: Consolidated Year-on-Year performance comparison: Increases/Decreases chart

    <Reference> Consolidated Year-on-Year performance comparison ① ~Increases/Decreases chart~ 9 Power supply and demand, Others ＋379.4 and transmission revenue -391.9 Ordinary income/loss (Units: Billion yen) Related to Sales (After deduct renewable energy) Related to Area demand Fuel cost adjustment D

13. Slide 13: Consolidated Year-on-Year performance comparison: Figures

    <Reference> Consolidated Year-on-Year performance comparison ② ~Figures~ 10 （Units: Billion yen) FY2018(B) FY2019(A) (A)–(B) Ordinary Income 276.5 264.0 -12.5 Power supply and demand, and transmission 2,302.3 1,910.3 -391.9 revenue Retail/wholesale power sales 4,679.4 4,440.3 -239.1 （△） Electricity

14. Slide 14: Year-on-Year Comparisons for TEPCO Holdings

    <Reference> Year-on-Year Comparisons for TEPCO Holdings 11 Ordinary Income/Loss （Unit：Billion Yen） Profit Structure Profit is dividend income, decommissioning charges profit, management consultation fees, wholesale power sales of hydro and nuclear power, etc. Decrease in management support fees, etc

15. Slide 15: Year-on-Year Comparisons for TEPCO Fuel & Power

    <Reference> Year-on-Year Comparisons for TEPCO Fuel & Power 12 Ordinary Income/Loss Profit Structure （Unit：Billion Yen） Main profit is JERA’s share of profit of entities accounted for using equity method. Power-generation business was transferred to JERA on Mainly JERA’s share of April1, 2019. Domes

16. Slide 16: Year-on-Year Comparisons for TEPCO Power Grid

    <Reference> Year-on-Year Comparisons for TEPCO Power Grid 13 Ordinary Income/Loss Profit Structure （Unit：Billion Yen） Operating revenue is mainly transmission revenue, and this is fluctuated by area demand. Expenses is mainly for repairs and depreciation of transmission and distribution facilities.

17. Slide 17: Year-on-Year Comparisons for TEPCO Energy Partner

    <Reference> Year-on-Year Comparisons for TEPCO Energy Partner 14 Ordinary Income/loss Profit Structure (Units: Billion Yen) Operating revenue is mainly electricity sales revenue, and this is fluctuated by electricity sales volume. Expenses are mainly power purchasing costs and Year-on-Year transmiss

18. Slide 18: Supplemental Material

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

19. Slide 19: Table of Contents

    Table of Contents Financial Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 15 Current Situation and Status of Units 1 through 4 25 Financial Impact of the Great East Japan Earthquake 16 Key points of the revised “the

20. Slide 20: FY2019 Financial Results Detailed Information

    FY2019 Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

21. Slide 21: Consolidated Statements of Income

    15 Consolidated Statements of Income (Unit: Billion Yen) Comparison FY2019(A) FY2018 (B) (A)-(B) (A)/(B) (%) Operating Revenue 6,241.4 6,338.4 -97.0 98.5 Operating Expenses 6,029.5 6,026.2 3.3 100.1 Operating Income / Loss 211.8 312.2 -100.4 67.8 Non-operating Revenue 107.4 38.1 69.3 281.8 Investmen

22. Slide 22: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan Earthquake 16 (Unit: Billion Yen) Cumulative Item FY2010 to FY2018 FY2019 Amount ◇Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation ○Grants-in-aid based on Nuclear Damage Compensation and Decommissioning *1 *2 7,193.1

23. Slide 23: Consolidated Balance Sheets

    Consolidated Balance Sheets 17 (Unit: Billion Yen) <Interest-bearing debt outstanding> (Unit: Billion Yen) Mar. 31 Mar. 31 Comparison Mar. 31 Mar. 31 (A)-(B) 2020 (A) 2019 (B) (A)-(B) (A)/(B) (%) 2020 (A) 2019 (B) Bonds 2,214.6 1,956.7 257.8 Total Assets 11,957.8 12,757.4 -799.6 93.7 Long-term Debt

24. Slide 24: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 18 (Unit: Billion Yen) Comparison FY2019 (A) FY2018 (B) (A)-(B) Cash flow from operating activities 323.4 503.7 -180.2 Income / loss before income taxes 69.2 258.6 -189.3 Depreciation and amortization 422.4 541.8 -119.3 Increase (decrease) in decommissioning res

25. Slide 25: Overview of Consolidated Cash Flows

    Overview of Consolidated Cash Flows - Year on Year Comparison 19 Cash and cash equivalents as of March 31, 2020 decreased 187.2 billion yen to 812.1 billion yen. - Cash flow from operating activities increased 323.4 billion yen mainly due to income before income taxes and minority interests - Cash f

26. Slide 26: Key Factors Affecting Performance

    Key Factors Affecting Performance 20 Key Factors Affecting Performance（Results） FY2019 ［Reference］ FY2018 Electricity Sales Volume (Billion kWh) 222.3 230.3 Gas Sales Volume ( M illion ton) 2.17 1.77 F o r e i g n E x c h a n g e R a t e ( I n t e r b a n k ; y e n p e r d o l l a r ) 108.7 110.9 C

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

    Seasonal Breakdown of Electricity Sales Volume and Total Power Generated 21 Electricity Sales Volume Unit: Billion kWh FY2019 Apr-Sep Oct-Dec Jan Feb Mar Jan-Mar Full year Lighting 32.25 15.66 7.55 7.01 6.09 20.65 68.57 Power 79.53 37.29 12.40 12.47 12.03 36.90 153.71 Total 111.78 52.95 19.95 19.49

28. Slide 28: Gas Supply Business

    Gas Supply Business 22 Sales Volume Revenues (Million ton) (Billion yen) (FY) * April 2017~ Full liberalization of gas market <FY2019 Actual Performance> Revenues: Increased 33.1 billion yen YoY to 162.4 billion yen due to increases in sales volume mainly in household gas. Operating expenses: Increa

29. Slide 29: Feed-in Tariff Scheme for Renewable Energy

    Feed-in Tariff Scheme for Renewable Energy (Purchase Cost Collection Flow) 23 （FY2019 ) Avoidable Cost 165.3 billion yen * Renewable Subsidy Purchase Cost Energy 408.8 billion yen 574.1 billion yen Generators Cost Bearing Adjustment (Recorded as (Recorded as Power Organization Other Revenues) Purcha

30. Slide 30: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 24 (Billion Yen) Amount at Maturity (As of Mar 31, 2020) TEPCO Public Bond TEPCO Power Grid Public Bond (FY) Note: The amount redeemed for FY 2019 totaled 322.5 billion yen. ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

31. Slide 31: 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.

32. Slide 32: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 25 - At Units 1, 2 and 3, it was evaluated that the comprehensive cold shutdown condition had been maintained, judging from the temperatures of the reactors and spent fuel pools as well as the density of radioactive materials. To facilitate the remov

33. Slide 33: Key points of the revised Mid-and-Long-Term Roadmap

    Key points of the revised “the Mid-and-Long-Term Roadmap” 26 ●Please visit the company webpage for the revised Mid-and-Long-Term Roadmap.  Setting out a basic principle of “coexistence of reconstruction and decommissioning”, while there has been gradual progress of residents’ return and reconstruct

34. Slide 34: Major milestones of Mid-and-Long-Term Roadmap

    Major milestones of Mid-and-Long-Term Roadmap 27 Maintain Overall Framework of Decommissioning Schedule 30 ～ 40 years after cold Dec. 2011 Nov. 2013 Now Dec. 2021 End of 2031 shutdown Hold Hold Phase 1 Phase 2 Phase 3-(1) Phase 3 Period until start of spent Period until start of fuel debris retrieva

35. Slide 35: Fuel Debris Retrieval Schedule and Process

    Fuel Debris Retrieval Schedule and Process Based upon the Mid-to-Long Term Decommissioning Implementation Plan 2020 28  By 2031, the scale of retrieval will be gradually enlarged at Unit 2 and preparations will be made to further enlarge the scale of retrieval. Commencement of fuel debris retrieval

36. Slide 36: Contaminated Water Management

    Contaminated Water Management 29 − In December 2013, the government’s Nuclear Disaster Response Headquarters arranged a set of preventative and multi-tiered measures based on the three basic policies for addressing contaminated water issues. <Main countermeasures> < Major Progress> Please visit our

37. Slide 37: The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

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

38. Slide 38: Main Measures to Secure Safety - 1 [Outline]

    Main Measures to Secure Safety – 1 [Outline] 30  We promote the following measures to secure further safety after the Great East Japan Earthquake. I. Installation of flooding embankment III. Further enhancement of heat removal and III. Further enhancement of heat III. Further enhancement of heat re

39. Slide 39: Main Measures to Secure Safety - 2 [Implementation Status]

    Main Measures to Secure Safety - 2 [Implementation Status] 31 As of April 8, 2020 Item Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Ⅰ. Installation of flooding embankment [banks] Completed *2 Completed Ⅱ. Countermeasures against inundation into buildings (1) Installation of tide embankments (flo

40. Slide 40: Compliance Review under the New Regulatory Requirements

    Compliance Review under the New Regulatory Requirements 32 Latest Review Status ・On September 27, 2013, the applications for permission changes in reactor installation were presented to receive the regulatory standard compliance examination for Units 6 and 7. ・After the application for permission ch

41. Slide 41: Key License/Permit Steps in Enforcement of New Regulatory Requirements

    Key License/Permit Steps in Enforcement of New Regulatory Requirements 33 Current point NRA TEPCO Verification of compliance Application Construction plan & safety regulations(※1) Pre-use inspection(※2) (of safety designs including safety measures) ※Amended version reflects content of installation l

42. Slide 42: Other Initiatives

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

43. Slide 43: Efforts towards Nuclear Reform - 1

    Efforts towards Nuclear Reform - 1 34 - Framework for Nuclear Reform − Since April 2013, TEPCO has advanced the Nuclear Safety Reform Plan so that it may realize its determination that “the Fukushima nuclear accident will never be forgotten and we will be a nuclear operator which continues to create

44. Slide 44: Efforts towards Nuclear Reform - 2

    Efforts towards Nuclear Reform – 2 35 - Report on Status of the Nuclear Safety Reform Plan With respect to the Nuclear Safety Reform Plan, in addition to measures to make up for the inadequacies in "safety awareness", "interaction capabilities", "technical capabilities" that were the underlying fac

45. Slide 45: Main Efforts to Increase Corporate Value-1

    Main Efforts to Increase Corporate Value-1 36 <TEPCO Holdings> February 3, 2020 Signed a comprehensive cooperation agreement on establishing a joint research project on disaster prevention and mitigation with the Nagaoka University of Technology March 18, 2020 Agreed with Ørsted A/S to establish a j

46. Slide 46: Main Efforts to Increase Corporate Value-2

    Main Efforts to Increase Corporate Value-2 37 <TEPCO Energy Partner> February 26, 2020 Expanded the mobile battery rental service “Juren” service area across Japan, aiming for the installation of approx. 10,000 units within FY2020 March 12, 2020 Established a new organization, the DX Promotion Offic

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