Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q3 FY2016 Earnings Presentation

48 slides from Tokyo Electric Power's earnings presentation, Jan 31, 2017

  1. Slide 1: FY2016 3rd Quarter Financial Results (April 1 – December 31, 2016)

    FY2016 3rd Quarter Financial Results (April 1 – December 31, 2016) Tokyo Electric Power Company Holdings, Inc. ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  2. Slide 2: Regarding Forward-Looking Statements

    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 predictions about the future, which inherently involve risks an

  3. Slide 3: Overview of FY2016 3rd Quarter Financial Results

    Overview of FY2016 3rd Quarter Financial Results (Released on January 31, 2017) ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  4. Slide 4: Key Points of FY2016 3rd Quarter Financial Results

    Key Points of FY2016 3rd Quarter Financial Results 1 < FY2016 3rd Quarter Financial Results >  Ordinary revenues decreased for the second consecutive year due to a decrease in the unit price of electricity resulting from fuel cost adjustments.  Ordinary expenses decreased due to the fall of fuel p

  5. Slide 5: 1. Consolidated Financial Results

    1. Consolidated Financial Results 2 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (% ) Operating Revenues 3,877.6 4,497.1 -619.4 86.2 Operating Income 336.9 463.1 -126.1 72.8 Ordinary Income 306.1 436.2 -130.1 70.2 Extraordinary Income 330.6 500.0 -169.3 - Extr

  6. Slide 6: 2. Electricity Sales Volume / Key Factors Affecting Performance

    2. Electricity Sales Volume/ Key Factors Affecting Performance 3 Electricity Sales Volume (Unit: Billion kWh) FY2016 FY2015 Comparison Apr-Dec* (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Lighting 59.9 61.5 -1.6 97.4 Power 117.2 119.2 -1.9 98.4 Total 177.1 180.6 -3.5 98.1 * Excluding islands. Including nati

  7. Slide 7: 3. Ordinary Revenues (Consolidated)

    3. Ordinary Revenues (Consolidated) 4 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) ・Effect of fuel cost (Operating Revenues) 3,877.6 4,497.1 -619.4 86.2 adjustments -639.0 Electricity Sales Revenues 3,235.3 3,886.4 -651.1 83.2 Lighting 1,387.9 1,614.7 -226

  8. Slide 8: 4. Ordinary Expenses (Consolidated)

    4. Ordinary Expenses (Consolidated) 5 (Unit: Billion Yen) ・Effect of price FY2016 FY2015 Comparison fluctuations of exchange Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) rate, CIF and others -436.0 Personnel Expenses 252.0 266.8 -14.7 94.5 ・Decrease in thermal Fuel Expenses 788.2 1,244.3 -456.0 63.4

  9. Slide 9: 5. Extraordinary Income/Loss (Consolidated)

    5. Extraordinary Income/ Loss (Consolidated) 6 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Dec Apr-Dec Extraordinary Income 330.6 500.0 -169.3 Grants-in-aid from NDF* 294.2 426.7 -132.5 Gain on change in equity 36.4 12.2 24.2 Gain on revision of retirement benefit plan - 61.0 -61.0 Extraordinar

  10. Slide 10: 6. Consolidated Financial Position

    6. Consolidated Financial Position 7 Total assets decreased 1,351.0 billion yen mainly due to contribution of reserve fund for reprocessing of irradiated nuclear fuel to Nuclear Reprocessing Organization of Japan. Total liabilities decreased 1,620.3 billion yen mainly due to reversal of provision

  11. Slide 11: 7. FY2016 Full-Year Financial Forecasts

    7. FY2016 Full-Year Financial Forecasts 8 FY2016 Full-Year Financial Forecasts (Unit: Billion Yen) Comparison FY2016 Projection (A) FY2015 Actual (B) (A)-(B) Operating Revenues 5,344 6069.9 -725 Operating Income 336 * 372.2 -36 Ordinary Income 291 * 325.9 -35 * Excluding Special Contribution (The am

  12. Slide 12: Supplemental Material

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

  13. Slide 13: Table of Contents

    Table of Contents Financial Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 9 Current Situation and Status of Units 1 through 4 25 Breakdown of Consolidated Ordinary Revenues 10 Overview of the Mid-to-long Term Roadmap

  14. Slide 14: FY2016 3rd Quarter Financial Results Detailed Information

    FY2016 3rd Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  15. Slide 15: Consolidated Statements of Income

    9 Consolidated Statements of Income (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Operating Revenues 3,877.6 4,497.1 -619.4 86.2 Operating Expenses 3,540.7 4,034.0 -493.3 87.8 Operating Income 336.9 463.1 -126.1 72.8 Non-operating Revenues 47.6 54.4 -6.8 87

  16. Slide 16: Breakdown of Consolidated Ordinary Revenues

    Breakdown of Consolidated Ordinary Revenues 10 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Ordinary Revenues 3,925.2 4,551.6 -626.3 86.2 Operating Revenues 3,877.6 4,497.1 -619.4 86.2 Operating Revenues from Electric Power Business 3,706.2 4,296.5 -590.2

  17. Slide 17: Breakdown of Consolidated Ordinary Expenses

    Breakdown of Consolidated Ordinary Expenses 11 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 3,619.1 4,115.3 -496.2 87.9 Operating Expenses 3,540.7 4,034.0 -493.3 87.8 Operating Expenses for Electric Power Business 3,394.8 3,870.3 -475.5 8

  18. Slide 18: Year-on-Year Comparison of Consolidated Ordinary Expenses - 1

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 1 12 Personnel expenses (¥266.8 billion to ¥252.0 billion) - ¥14.7 billion Salary and benefits (¥190.1 billion to ¥190.9 billion) +¥0.7 billion Retirement benefits (¥25.9 billion to ¥13.2 billion) - ¥12.7 billion Amortization of actuarial d

  19. Slide 19: Year-on-Year Comparison of Consolidated Ordinary Expenses - 2

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 2 13 Maintenance expenses (¥235.2 billion to ¥228.0 billion) -¥7.2 billion Generation facilities (¥99.0 billion to ¥75.8 billion) -¥23.1 billion Hydroelectric power (¥6.3 billion to ¥4.8 billion) Main Factors for Increase/ Decrease - ¥1.5 b

  20. Slide 20: Year-on-Year Comparison of Consolidated Ordinary Expenses - 3

    14 Year-on-Year Comparison of Consolidated Ordinary Expenses - 3 Taxes and other public charges (¥241.0 billion to ¥227.1 billion) - ¥13.8 billion Enterprise tax (¥44.0 billion to ¥37.8 billion) -¥6.2 billion Charge for occupancy of roads (¥26.9 billion to ¥21.1 billion) - ¥5.7 billion Nuclear power

  21. Slide 21: Increase/Decrease of Consolidated Business Performance

    Increase/ Decrease of - Year on Year Comparison 15 Consolidated Business Performance Ordinary income decreased 130.1 billion yen to 306.1 billion yen. Ordinary Income (Unit: Billion Yen) Factors related to Power Supply and Demand Others (including renewable energy) +94.1 Decrease - 224.2 in Profits

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

    Financial Impact of the Great East Japan Earthquake 16 (Unit: Billion Yen) FY2016 Cumulative Item FY 2010 to FY 2015 Apr-Dec Amount ◇Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation ○Grants-in-aid based on Nuclear Damage Compensation and Decommissioning *1

  23. Slide 23: Consolidated Balance Sheets

    Consolidated Balance Sheets 17 <Interest-bearing debt outstanding> (Unit: Billion Yen) (Unit: Billion Yen) Dec. 31 Mar. 31 Comparison Dec. 31 Mar. 31 2016 (A) 2016 (B) (A)-(B) (A)/(B) (%) (A)-(B) 2016 (A) 2016 (B) Total Assets 12,308.6 13,659.7 -1,351.0 90.1 Bonds 3,239.5 3,480.6 -241.1 Fixed Assets

  24. Slide 24: Segment Information

    Segment Information 18 (Unit: Billion Yen) FY2016 FY2015 Comparison FY2016 Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) Projection Operating Revenues 3,877.6 4,497.1 -619.4 86.2 5,344.0 688.6 537.2 151.4 128.2 925.0 Holdings 39.8 37.9 1.9 105.2 70.0 1,187.7 1,872.1 -684.3 63.4 1,620.0 Fuel & Power 21.9 4

  25. Slide 25: FY2016 Full-Year Financial Forecasts (Comparison with Previous Fiscal Year)

    FY2016 Full-Year Financial Forecasts (Comparison with the Previous Fiscal Year Results) 19 Ordinary Income Factors related to Power Supply and Others (Unit: Billion Yen) Demand (including renewable energy) +345 - 380 Decrease in Profits 35 billion yen FY2015 Fuel Cost Foreign Exchange Rate + 13 Actu

  26. Slide 26: [Reference] Key Factors Affecting Performance and Financial Impact

    [Reference] Key Factors Affecting Performance and Financial Impact 20 Key Factors Affecting Performance Financial Impact (Sensitivity) (Unit: Billion Yen) FY2016 【Reference】 FY2016 【Reference】 Full-year Projection FY2015 Actual Performance Full-Year Projection FY2015 Full-Year Apr-Dec Actual Perform

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

    [Reference] Seasonal Breakdown of Electricity Sales Volume and 21 Total Power Generated Electricity Sales Volume Unit: Billion kWh FY2016 Apr-Sep Oct Nov Dec Oct-Dec Apr-Dec Lighting 39.90 5.88 6.58 7.51 19.98 59.88 Power 79.68 12.83 12.26 12.47 37.56 117.24 Total 119.58 18.72 18.84 19.99 57.55 177.

  28. Slide 28: [Reference] Fuel Consumption

    [Reference] Fuel Consumption 22 Fuel Consumption Data 【Reference】 FY2013 FY2014 FY2015 FY2016 FY2015 Actual Actual Actual Apr-Dec Apr-Dec LNG(million tons) 23.78 23.49 21.55 14.97 15.92 Oil (million kｌ) 6.82 3.10 2.48 1.58 1.64 Coal (million tons) 7.76 7.53 8.34 6.24 6.06 Note: The oil data is total

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

    [Reference] Feed-in Tariff Scheme for Renewable Energy 23 (Purchase Cost Collection Flow) （FY 2016 Apr-Dec) Avoidable Cost 54.6 billion yen (Green Investment Promotion Organization) Cost Bearing Adjustment Organization Generators Renewable Energy Subsidy Purchase Cost 216.2 billion yen 270.9 billion

  30. Slide 30: [Reference] Schedules for Public Bond Redemption

    [Reference] Schedules for Public Bond Redemption 24 (Billion Yen) Amount at Maturity (As of Dec. 31, 2016) Foreign currency-denominated bond Domestic (Public bond) (FY) Note: The amount redeemed for Apr.-Dec. of fiscal 2016 totaled 241.8 billion yen. ©Tokyo Electric Power Company Holdings, Inc. All

  31. Slide 31: The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives

    The Current Status of Fukushima Daiichi Nuclear Power Stations 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: Overview of the Mid-to-long Term Roadmap - 1

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of 26 Fukushima Daiichi Nuclear Power Station - 1 - TEPCO, jointly with the national government, released “Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4” in Decemb

  34. Slide 34: Overview of the Mid-to-long Term Roadmap - 2

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of 27 Fukushima Daiichi Nuclear Power Station - 2 <Main target process of the Decommissioning> Previous Future efforts Area efforts Phase 2 (until commencement of fuel debris rmoval) Phase 3 (until decommissioning completed) ～FY201

  35. Slide 35: Contaminated Water Management

    Contaminated Water Management 28 − 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. − Towards conclusive closure of land-side frozen impermeab

  36. Slide 36: 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.

  37. Slide 37: Main Measures to Secure Safety - 1 [Outline]

    Main Measures to Secure Safety – 1 [Outline] 29  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

  38. Slide 38: Main Measures to Secure Safety - 2 [Implementation Status]

    Main Measures to Secure Safety - 2 [Implementation Status] 30 As of Jan 26, 2017 Item Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Ⅰ. Installation of flooding embankment [banks] Completed Completed Ⅱ. Countermeasures against inundation into buildings (1) Installation of tide embankments (flood b

  39. Slide 39: Compliance Review under the New Regulatory Requirements - 1

    Compliance Review under the New Regulatory Requirements – 1 31 - In November 2013, the Nuclear Regulation Authority (NRA) started reviews for Kashiwazaki-Kariwa Nuclear Power Station Units 6 and 7 as to their compliance under the New Regulatory Requirements. - Regarding plant examination, the method

  40. Slide 40: Compliance Review under the New Regulatory Requirements - 2

    32 Compliance Review under the New Regulatory Requirements - 2 ＜Review Process＞ NRA TEPCO Holdings July 8, 2013 September 27, 2013 Enforcement on New Submission of Application Application for permission for change in reactor Regulatory Requirements installation license Application for approval of co

  41. Slide 41: Other Initiatives

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

  42. Slide 42: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 33 <Cost reduction> − In the New Comprehensive Special Business Plan, TEPCO* and its subsidiaries & affiliated companies will implement further cost reduction of 1,419.4 billion yen and 108.5 billion yen, respectively from the previous Comprehensive Special

  43. Slide 43: Efforts towards Nuclear Reform - Framework for Nuclear Reform

    Efforts towards Nuclear Reform - 1 34 - Framework for Nuclear Reform − Since April 2013, TEPCO has advanced the Nuclear Safety Reform Plan so that we may realize our 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 - The Nuclear Safety Reform Plan consists of 6 measures that compensate for the lack of “safety awareness”, “technological capability” and “dialogue-promoting capability” which are the underlying contributors

  45. Slide 45: Main Efforts to Increase Corporate Value

    Main Efforts to Increase Corporate Value 36  Main efforts made by TEPCO Holdings and its core operating companies are as follows. (Press releases) <TEPCO Holdings> Nov. 4, 2016 Agreement regarding P2G (Power to Gas) system development and demonstration project towards achieving hydrogen energy soci

  46. Slide 46: [Reference] Entry into Household City Gas Retail Business

    [Reference] Entry into Household City Gas Retail Business 37  On December 26, 2016, TEPCO Energy Partner, Inc. (“TEPCO EP”) and NIPPON GAS CO., LTD. (“NICHIGAS”) concluded a basic agreement for TEPCO EP to wholesale city gas (13A) to NICHIGAS which will be sold mainly to households beginning in Apr

  47. Slide 47: [Reference] Relationship between TEPCO EP and NICHIGAS

    [Reference] Relationship between TEPCO EP and NICHIGAS 38  TEPCO EP and NICHIGAS will set up a platform that merges their respective functions and know-how necessary for gas sales.  This will provide a stable supply of gas and services to retailers newly entering the gas retail market. Customers C

  48. Slide 48: TEPCO - The Energy for Every Challenge

    T=PCO The Energy for Every Challenge

Tokyo Electric Power Company Holdings — Q3 FY2016 Earnings Presentation on 6ix