Tokyo Electric Power Company Holdings, Incorporated · TSE:9501
Tokyo Electric Power — FY2009 Earnings Presentation
48 slides from Tokyo Electric Power's earnings presentation, Apr 30, 2010
Slide 1: FY2009 Year-end Earnings Results
TOKYO ELECTRIC POWER COMPANY TEPCO FY2009 Year-end Earnings Results (April 1, 2009 – March 31, 2010) Presentation Material Masaru Takei Managing Director April 30, 2010 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010
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
Slide 3: Overview of FY2009 Earnings Results
TEPCO Ⅰ．Overview of FY2009 Earnings Results The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010
Slide 4: Key points of FY2009 Earnings Results
Key points of FY2009 Earnings Results 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 adjustment sys
Slide 5: FY2009 Earnings Results Summary (Consolidated and Non-consolidated)
FY2009 Earnings Results Summary (Consolidated and Non-consolidated) 2 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion Yen) FY2009 FY2008 Comparison (A) (B) (A) - (B) (A)/(B) % Electricity Sales Volume (billion kWh) 280.2 289.0 -8.8 97.0 consol
Slide 6: FY2009 Business Performance - 1 - Electricity Sales Volume, Total Power Generated and Purchased
FY2009 Business Performance - 1 - Electricity Sales Volume, Total Power Generated and Purchased 3 TEPCO Electricity Electricity Sales Sales Volume Volume (Units: Billion kWh, %) FY2009 FY2010 1st 3rd 4th 2nd [FY 2010 Results] Full Year Projection Half Quarter Quarter Half ○ Total electricity sales v
Slide 7: FY2009 Business Performance – 2 - Comparison with previous fiscal year results
FY2009 Business Performance – 2 - Comparison with previous fiscal year results 4 TEPCO (Unit: Billion Yen) FY2009 Actual (A) FY2008 Actual (B) Comparison (A)-(B) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Operating Revenues 5,016.2 4,804.4 5,887.5 5,643
Slide 8: FY2009 Business Performance – 3 - Comparison with previous projection
FY2009 Business Performance – 3 - Comparison with previous projection 5 TEPCO (Unit: Billion Yen) FY2009 Projection FY2009 Actual (A) (B) Comparison (A)-(B) (As of January 29, 2010) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Operating Revenues 5,016.2 4
Slide 9: FY2009 Business Performance – 4 - Financial impact of Kashiwazaki-Kariwa shutdown
FY2009 Business Performance – 4 - Financial impact of Kashiwazaki-Kariwa Nuclear Power Station shutdown 6 TEPCO (Unit: Billion yen) FY2009 Actual 【Ref.】FY2007 Actual 【Ref.】FY2008 Actual Total 250.0 615.0 649.0 Fuel expenses, etc. 250.0 420.0 585.0 Increase in fuel and power purchasing expenses 1 285
Slide 10: FY2009 Business Performance – 5 - Results of the other business segments
FY2009 Business Performance – 5 - Results of the other business segments 7 TEPCO Revenues （Billion yen） (ex. Internal sales) 400 334 <Business Performance Summary> 300 48 283 Information and Telecoms 42 Revenues: ¥41.6 billion (¥6.4 billion decrease, year-on-year) ＋【AT TOKYO Corporation】 Increase
Slide 11: FY2010 Business Performance Outlook - 1 - Key Factors Affecting Performance
FY2010 Business Performance Outlook - 1 - Key Factors Affecting Performance and Financial Impact 8 TEPCO FY2010 FY 2009 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) 141.2
Slide 12: FY2010 Business Performance Outlook - 2 - Full year projection
FY2010 Business Performance Outlook - 2 9 TEPCO - Full year projection (Unit: Billion Yen) FY2010 Projection (A) FY2009 Actual (B) Comparison (A)-(B) (As of April 30, 2010) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Operating Revenues 5,330.0 5,110.0 5,
Slide 13: FY2010 Business Performance Outlook - 3 - 1st Half projection
FY2010 Business Performance Outlook - 3 10 TEPCO - 1st Half projection (Unit: Billion Yen) FY2010 1st Half Projection (A) FY2009 1st Half Actual (B) Comparison (A)-(B) (As of April 30, 2010) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Operating Revenues
Slide 14: Dividend Policy – returning earnings to our shareholders
Dividend Policy – returning earnings to our shareholders 11 TEPCO TEPCO’s TEPCO’sdividend dividendpolicy policy Based on its constant nominal payment policy, TEPCO aims to achieve consolidated dividend payout ratio of 30%. We are committed to sharing earnings with careful consideration of the co
Slide 15: FY2009 Earnings Results (Detailed Information)
TEPCO Ⅱ. FY2009 Earnings Results (Detailed Information) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010
Slide 16: Statements of Income (Consolidated)
Statements of Income (Consolidated) 12 TEPCO (Unit: Billion yen) FY2009 FY2008 Comparison (A) (B) (A)-(B) (A)/(B) (%) Operating Revenues 5,016.2 5,887.5 -871.3 85.2 Operating Expenses 4,731.8 5,820.6 -1,088.8 81.3 Operating Income 284.4 66.9 217.5 424.9 Non-operating Revenues 73.1 63.5 9.6 115.2 Inv
Slide 17: Revenues Breakdown (Non-consolidated)
Revenues Breakdown (Non-consolidated) 13 TEPCO (Unit: Billion yen) FY2009 FY2008 Comparison (A) (B) (A)-(B) (A)/(B) (%) Ordinary Revenues 4,852.7 5,683.3 -830.6 85.4 Operating Revenues 4,804.4 5,643.3 -838.9 85.1 Operating Revenues from electric power business 4,733.2 5,554.2 -820.9 85.2 Electricity
Slide 18: Expenses Breakdown (Non-consolidated)
Expenses Breakdown (Non-consolidated) 14 TEPCO (Unit: Billion yen) FY2009 FY2008 Comparison (A) (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 4,694.0 5,773.5 -1,079.4 81.3 Operating Expenses 4,554.5 5,620.6 -1,066.1 81.0 Operating Expenses for electric power business 4,487.5 5,532.6 -1,045.0 81.1 Person
Slide 19: Year-on-Year Comparison of Ordinary Expenses – 1 (Non-consolidated)
Year-on-Year Comparison of Ordinary Expenses – 1 (Non-consolidated) 15 TEPCO Personnel expenses (¥483.4 billion to ¥481.3 billion) -¥2.1 billion Salary and benefits (¥308.2 billion to ¥310.5 billion) +¥2.3 billion Retirement benefits (¥88.8 billion to ¥84.2 billion) -¥4.5 billion Decrease in amortiz
Slide 20: Year-on-Year Comparison of Ordinary Expenses – 2 (Non-consolidated)
Year-on-Year Comparison of Ordinary Expenses – 2 (Non-consolidated) 16 TEPCO Maintenance expenses (¥381.3 billion to ¥373.9 billion) -¥7.3 billion Generation related (¥179.5 billion to ¥166.3 billion) -¥13.2 billion Hydroelectric power (¥9.6 billion to ¥10.3 billion) Factors for Increase/Decrease +¥
Slide 21: Year-on-Year Comparison of Ordinary Expenses – 3 (Non-consolidated)
Year-on-Year Comparison of Ordinary Expenses – 3 (Non-consolidated) 17 TEPCO Power purchasing cost (¥842.5 billion to ¥722.4 billion) -¥120.0 billion Power purchased from other utilities (¥226.8 billion to ¥199.5 billion) Factors for Increase/Decrease -¥27.2 billion Power purchased from other utilit
Slide 22: Year-on-Year Comparison of Ordinary Expenses – 4 (Non-consolidated)
Year-on-Year Comparison of Ordinary Expenses – 4 (Non-consolidated) 18 TEPCO Interest paid (¥134.6 billion to ¥129.5 billion) -¥5.0 billion Lower average interest rate (1.75% in FY2008 to 1.73% in FY2009) -¥4.3 billion Decrease in average amount of interest-bearing debt, etc. -¥1.1 billion Increase
Slide 23: Balance Sheets (Consolidated and Non-consolidated)
Balance Sheets (Consolidated and Non-consolidated) 19 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Mar. 31, Mar. 31, Comparison Bond issued in FY2009 2010 (A) 2009 (B) (A)-(B) (A)/(B) (%) Issue amount Maturity Coupon rate Issue date (C
Slide 24: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows 20 TEPCO (Unit: Billion yen) FY2009 FY2008 Comparison (A) (B) (A)-(B) Cash flow from operating activities 988.2 599.1 389.1 Income / loss before income taxes and minority interests 223.4 -99.5 323.0 Depreciation and amortization 759.3 757.0 2.2 Others 5.3 -58.3
Slide 25: Free Cash Flow and its Application (Consolidated)
Free Cash Flow and its Application (Consolidated) 21 TEPCO FY2008 FY2009 Cash and (Unit: Billion yen) cash equivalents 107.8 Repayment of interest- bearing debt Investment, etc. FCF 419.5 Debt 213.0 392.4 FCF 278.7 Dividend Dividend 15.3 80.9 80.8 Cashflow from operating CAPEX for Cashflow activitie
Slide 26: Capital Expenditures (Consolidated and Non-consolidated)
Capital Expenditures (Consolidated and Non-consolidated) 22 TEPCO CAPEX for electric power business on non-consolidated basis in FY2009 did not reach the amount shown in the initial plan by ¥79.9 billion mainly due to revision of original construction plans in terms of scale, scheme and schedule.
Slide 27: Segment Information
Segment Information 23 TEPCO (Unit: Billion yen) Major subsidiaries in each segment (Unit: Billion yen) FY2009 FY2008 Comparison Operating Revenues Operating Income (A) (B) (A)-(B) (A)/(B) (%) Operating Revenues 5,016.2 5,887.5 -871.3 85.2 Change Change Electric Power 4,733.3 5,554.2 -820.9 85.2 Inf
Slide 28: Gas Supply Business
【Reference】 Gas Supply Business 24 TEPCO Operating Operating Performance Performance （Billion） Revenues Operating Income 76.1 72.0 58.0 <FY2009 Actual Performance> Operating revenues: Decreased ¥18.0 billion to ¥58.0 billion because of a drop in unit sales prices. -0.7 2.2 -4.0 Operating expenses: D
Slide 29: Overseas Business
【Reference】 25 TEPCO Overseas Business TEPCO % Company or Project Name1 Location Output Start of commercial operation, etc. Investment2 Ownership Chang Bin & Fong Der Project Taiwan ¥5.4 billion 19.5% 490MW, 980MW Commenced operations in Mar. 2004 Starbuck Project Taiwan ¥2.2 billion 22.7% 490MW Com
Slide 30: Seasonal Breakdown of Electricity Sales
【Reference】 Seasonal Breakdown of Electricity Sales - Sales Volume, Total Power Generated and Purchased 26 TEPCO (Units: Billion kWh, %) FY2008 FY2009 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 51.8
Slide 31: Recent Demand Trend of Large-scale Industries
【Reference】 27 TEPCO Recent Demand Trend of Large-scale Industries Reflecting continued decline in production levels, annual electricity sales volume for large-scale industrial customers decreased a substantial 7.2 percent year-on-year despite positive numbers in these 3 months. 【Year-on-year Elec
Slide 32: Performance of TEPCO’s Marketing & Sales Activities
【Reference】 Performance of TEPCO’s Marketing & Sales Activities 28 TEPCO TEPCO has achieved its cumulative sales expansion target of 10 billion kWh during the second quarter of FY09, one year ahead of the original plan shown on Management Vision 2010. The number reached 11.3 billion this fiscal ye
Slide 33: TEPCO’s Actions for Electric Vehicle Promotion
【Reference】 TEPCO TEPCO’s Actions for Electric Vehicle Promotion 29 Electric Vehicles (EV) is a zero-emissions vehicle. Even when taking into account CO2 emissions at the power plants generating the power needed for charging, EV emits approximately 69% less CO2 than equivalent petrol city cars*1.
Slide 34: Issue of TEPCO’s 17th Swiss Franc-denominated Straight Corporate Bond
【Reference】 Issue of TEPCO’s 17th Swiss Franc-denominated Straight Corporate Bond 30 TEPCO TEPCO’s 17th Swiss Franc-denominated straight corporate bond was issued on March 24, 2010. This is the first foreign currency-denominated straight corporate bonds in about 3 years since the issuance of the
Slide 35: Schedules for Corporate Bond Redemption
【Reference】 Schedules for Corporate Bond Redemption 31 TEPCO (Billion yen) Amount at maturity (as of March 2010) 800 747.9 foreign currency-denominated 700 Domestic 625.9 600 585.5 548.9 29.0 134.2 500 451.8 430.0 446.4 408.1 400 366.8 25.0 300 282.5 200 160.0 100 50.0 35.0 30.0 0 2010 2011 2012 201
Slide 36: Fuel Procurement and CO2 Emission
【Reference】 Fuel Procurement and CO2 Emission 32 TEPCO Fuel Fuel consumption consumption data data and and projection projection FY2006 FY2007 FY2008 FY2009 FY2009 FY2010 Actual Actual Actual Actual Supply Plan Projection LNG (million tons) 16.80 19.87 18.97 18.51 17.40 16.80 Oil (million kl) 4.04 9
Slide 37: Historical Prices of CIF Crude Oil, Fuel Coal and LNG
【Reference】 Historical Prices of CIF Crude Oil, Fuel Coal and LNG 33 TEPCO ($/b・t) ($/t) 160 900 Crude Oil Fuel Coal 140 800 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 08/
Slide 38: Selected Business Management and Performance Indicators
【Reference】 Selected Business Management and Performance Indicators 34 TEPCO <Reference> (Fiscal year) Management Vision 2010 2002 2003 2004 2005 2006 2007 2008 2009 Numercial Targets Profitability Return on Asset 3.6 3.5 4.1 4.2 4.1 1.0 0.5 2.1 － (%) 3.7 3.5 4.0 4.1 3.8 0.7 0.2 2.0 Free Cash Flow 6
Slide 39: 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 (As of April 30, 2010 unless otherwise noted) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010
Slide 40: Earthquake-Resistance and Safety
TEPCO Overview of Status of Initiatives 35 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
Slide 41: Evaluation Procedure of soundness and safety at Unit 1
TEPCO Evaluation Procedure of soundness and safety at Unit 1 36 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
Slide 42: Evaluation Procedure of soundness and safety at Unit 5
TEPCO Evaluation Procedure of soundness and safety at Unit 5 37 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
Slide 43: Basic Equipment Inspections
TEPCO Status of Progress at Each Unit in Facility Soundness Evaluation 38 ◆ 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 o
Slide 44: Reinforcement Work
【Earthquake-Resistance and Safety Improvement Initiatives】 TEPCO Reinforcement Work 39 ◆ 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 2008 2009 2010 Nov. Dec.
Slide 45: Progress for the Restart of Operations at Kashiwazaki-Kariwa Unit 6
【Reference】 40 TEPCO Progress for the Restart of Operations at Kashiwazaki-Kariwa Unit 6 ・Jun. 29: Received evaluation report saying restart of Unit 6 would pose no safety problems from Nuclear and Industrial Safety Agency (NISA). ・Jul. 2: Received evaluation report saying restart of Unit 6 would po
Slide 46: Testing Process of Overall Plant Functions at Unit 6
【Reference】 TEPCO Testing Process of Overall Plant Functions at Unit 6 41 Aug. 25, 2009 Condenser Reactor pressure Sep. 10 Output reaches 100% and constant vacuum elevated Aug. 30 Main turbine started operation at rated thermal output began Turbine revolutions Aug. 26 Control rod extraction begins A
Slide 47: Governmental Inspection and Investigation System
【Reference】 TEPCO Governmental Inspection and Investigation System 42 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
Slide 48: Niigata Prefecture’s Original Assessment System
【Reference】 TEPCO Niigata Prefecture’s Original Assessment System 43 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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