Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — FY2008 Earnings Presentation

39 slides from Tokyo Electric Power's earnings presentation, Apr 30, 2009

1. Slide 1: FY2008 Financial Results Presentation Materials

   TEPCO FY2008 Financial Results (April 1, 2008 – March 31, 2009) Presentation Materials April 30, 2009 Tokyo Electric Power Company Managing Director Masaru Takei The Tokyo Electric Power Company, Inc. All Rights Reserved ©2009

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

   TEPCO Regarding Forward-Looking Statements (Performance Projections) Certain statements in the following presentation regarding Tokyo Electric Power Company’s business operations may constitute “forward-looking statements.” As such, these statements are not historical facts but rather predictions ab

3. Slide 3: Overview of FY2008 Financial Results

   TEPCO Ⅰ．Overview of FY2008 Financial Results The Tokyo Electric Power Company, Inc. All Rights Reserved ©2009

4. Slide 4: Key points of Results for FY2008

   Key points of Results for FY2008 1 TEPCO Overview ： Overview： 99Operating Operatingrevenues: 【Consolidated】¥5,887.5billion revenues:【Consolidated】¥5,887.5 billion(7.4% (7.4%increase, increase,year-on-year),【Non-consolidated】 year-on-year),【Non-consolidated】 ¥5,643.3 ¥5,643.3billion billion(8.0% (8.0

5. Slide 5: FY2008 Results Summary (Consolidated and Non-consolidated)

   FY2008 Results Summary (Consolidated and Non-consolidated) 2 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Comparison FY2008 (A) FY2007 (B) (A)-(B) (A)/(B)(%) Electricity sales volume (Billion kWh) 289.0 297.4 -8.4 97.2 (Consolidated) 5

6. Slide 6: Electricity Sales Volume, Total Power Generated and Purchased

   Electricity Sales Volume, Total Power Generated and Purchased 3 TEPCO Electricity Sales Volume (Units: Billion kWh, %) 【FY2008】 FY2008 FY2009 1st half 2nd half Total Projection ¾Year-on year : ▲2.8%（first time decrease in 2 years） Regulated segment 51.85 56.12 107.96 110.3 Factors: (-0.6) (-3.6) (-2

7. Slide 7: Impact of the Shutdown of Kashiwazaki-Kariwa Nuclear Power Station

   Impact of the Shutdown of Kashiwazaki-Kariwa Nuclear Power Station 4 TEPCO (Unit: Billion yen) FY2008 FY2008 projection 【Ref.】FY2007 actual performance (as of January 30) actual performance Total 649.0 603.5 615.0 Fuel expenses, etc. 585.0 585.0 420.0 Increase in fuel expenses and purchased power1 6

8. Slide 8: Performance Outlook for FY2009 - Key Factors Affecting Performance and Financial Impact

   Performance Outlook for FY2009 - Key Factors Affecting Performance and Financial Impact 5 TEPCO Key Factors Affecting Performance FY2009 FY 2008 2Q of the year full year 2Q of the year full year full year projection projection projection actual performance actual performance (as of Jan. 31) Electric

9. Slide 9: Performance Outlook for FY2009

   Performance Outlook for FY2009 6 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Operating Operating Ordinary Net 2Q of the year revenues income or loss income or loss income or loss FY2009 (Consolidated) 2,575.0 - - - projection (Non-con

10. Slide 10: Dividend

    TEPCO Dividend 7 【Dividend Policy】 TEPCO is fundamentally committed to maintaining a stable dividend and intends to achieve a consolidated payout ratio of 30% or higher. Therefore, the Company endeavors to meet shareholder’ expectations by distributing earnings while comprehensively considering fact

11. Slide 11: FY2008 Financial Results (Detailed Information)

    TEPCO Ⅱ. FY2008 Financial Results (Detailed Information) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2009

12. Slide 12: FY2008 Results (Comparison with previous projection)

    FY2008 Results (Comparison with previous projection) 9 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Operating Operating Ordinary Net revenues income or loss income or loss income or loss FY2008 (Consolidated) 5,887.5 66.9 -34.6 -84.5 a

13. Slide 13: Statement of Income (Consolidated)

    Statement of Income (Consolidated) 10 TEPCO (Unit: Billion yen) Comparison KANDENKO., LTD FY2008(A) FY2007 (B) (A)-(B) (A)/(B) (%) +\3.5 billion(0.3 billion) Operating revenues 5,887.5 5,479.3 408.1 107.4 TeaM Energy Corporation +\1.0billion(-0.4 billion) Operating expenses 5,820.6 5,342.9 477.6 108

14. Slide 14: Revenues Breakdown (Non-consolidated)

    Revenues Breakdown (Non-consolidated) 11 TEPCO (Unit: Billion yen) Comparison Decrease in electricity sales volume FY2008(A) FY2007 (B) (-8.4 billion kWh) -¥140.0 billion (A)-(B) (A)/(B) (%) Ordinary revenues 5,683.3 5,265.8 417.5 107.9 Increase in unit sales price (+1.80 yen/kWh) +¥521.0 billion Op

15. Slide 15: Expenses Breakdown (Non-consolidated)

    Expenses Breakdown (Non-consolidated) 12 TEPCO (Unit: Billion yen) Comparison FY2008(A) FY2007 (B) (A)-(B) (A)/(B) (%) Ordinary expenses 5,773.5 5,287.8 485.6 109.2 Operating expenses 5,620.6 5,129.3 491.2 109.6 Electric power operating expenses 5,532.6 5,075.0 457.6 109.0 Personnel 483.4 337.7 145.

16. Slide 16: Year-on-Year Comparison of Ordinary Expenses – 1 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 1 (Non-consolidated) 13 TEPCO Personnel expenses (¥337.7 billion to ¥483.4 billion) +¥145.7 billion Salary and benifits(¥314.3 billion to ¥308.2 billion) -¥6.1 billion Factors include lower employee bonuses Retirement benefits(¥-62.6 billion to ¥88.8 bi

17. Slide 17: Year-on-Year Comparison of Ordinary Expenses – 2 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 2 (Non-consolidated) 14 TEPCO Maintenance expenses (¥432.1 billion to ¥381.3 billion) -¥50.8 billion Generation related (¥207.0 billion to ¥179.5 billion) Factors for Increase/Decrease -¥27.4 billion Hydroelectric power：Reduction of waterwheel repairs,

18. Slide 18: Year-on-Year Comparison of Ordinary Expenses – 3 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 3 (Non-consolidated) 15 TEPCO Power purchasing cost (¥773.1 billion to ¥842.5 billion) Fac tors for Increase/Decrease +¥69.3 billion Purchased power from other utilities： Purchased power from other utilities (¥259.5 billion to ¥226.8 billion) Decrease i

19. Slide 19: Year-on-Year Comparison of Ordinary Expenses – 4 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 4 (Non-consolidated) 16 TEPCO Interest paid (¥143.0 billion to ¥134.6 billion) -¥8.3 billion Lower average interest rate -¥8.8 billion Rebound resulting in decrease of interest amount due to advanced payment at higher interest the year before -¥5.2 bill

20. Slide 20: Balance Sheets (Consolidated and Non-consolidated)

    Balance Sheets (Consolidated and Non-consolidated) 17 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Bond issued in FY2008 Mar. 31, Mar. 31, Comparison Issue amount Period Coupon rate 2009 (A) 2008 (B) (A)-(B) (A)/(B) (%) Issue date (bil

21. Slide 21: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows 18 TEPCO (Unit: Billion yen) Comparison FY2008 (A) FY2007 (B) (A)-(B) Cash flow from operating activities 599.1 509.8 89.2 Income / loss before income taxes and minority interests -99.5 -212.4 112.9 Depreciation and amortization 757.0 772.4 -15.3 Increase / decre

22. Slide 22: Free Cash Flow and its Application

    Free Cash Flow and its Application (Consolidated and Non-consolidated) 19 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Comparison FY2008 (A) FY2007 (B) (A)-(B) (A)/(B) (%) 599.1 509.8 89.2 117.5 Cash flow from operating activities 513.

23. Slide 23: Capital Expenditure (Consolidated and Non-consolidated)

    Capital Expenditure (Consolidated and Non-consolidated) 20 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) （Unit：Billion yen） FY 2008 FY 2007 FY 2009 actual actual Factors for Increase/Decrease projection performance performance E l Hydroelectric (Non-consol

24. Slide 24: Segment Information

    Segment Information 21 TEPCO (Unit: Billion yen) Comparison Major subsidiaries in each segment (Unit: Billion yen) FY2008 (A) FY2007 (B) Operating revenues Operating income (A)-(B) (A)/(B) (%) Operating revenues 5,887.5 5,479.3 408.1 107.4 Increase or Increase or decrease decrease 5,554.2 5,169.1 38

25. Slide 25: Gas Supply Business

    Gas Supply Business 22 TEPCO (Unit: Billion yen) FY2008 FY2007 Comparison FY2008 Full Year actual performance actual performance (A)-(B) (A)/(B) (%) projection Operating revenues 76.1 42.8 33.3 177.8 58.0 Operating income or loss -0.7 -1.2 0.5 － 2.0 ※ approx. 1,080 approx. 780 Gas Sales volume thous

26. Slide 26: Overseas Business

    Overseas Business 23 TEPCO TEPCO (Investment Company or Project Name1 Location 2 Output Start of commercial operation, etc. Investment ratio) ①Chang Bin & Fong Der Project Taiwan ¥5.3 billion ( 19.5% ) 490MW, 980MW Commenced operations in Mar. 2004 ①Starbuck Project Taiwan ¥2.2 billion ( 22.7% ) 490

27. Slide 27: Status of Large Industrial Power

    【Reference】Status of Large Industrial Power 24 TEPCO 【Year-on-year Electric Sales by Large Industrial Customer Classification】 FY2007 FY2008 Full-year 1st half 3rd quarter Jan. Feb. Mar. 4th quarter Full-year Textile -0.7 -12.3 -13.1 -19.6 -30.4 -30.1 -26.8 -15.8 Paper & pulp -0.1 -5.7 -7.5 -16.5 -2

28. Slide 28: Expansion of New Electricity Sales Volume

    【Reference】 Expansion of New Electricity Sales Volume 25 TEPCO 【All-Electric Housings】 （thousand housings） Transition of Cumulative Number of All-Electric Housings Deffusion of the Electric Hot Water Supplier and IH Cooking Heater （Unit：thousand） 800 22.0% 25% FY2003 FY2004 FY2005 FY2006 FY2007 FY20

29. Slide 29: Fuel Consumption and CO2 Emissions

    【Reference】 TEPCO Fuel Consumption and CO2 Emissions 26 Fuel FuelConsumption Consumption FY2006 FY2007 FY2008 FY20091 LNG (million tons) 16.80 19.87 18.97 17.40 Oil (million kl) 4.04 9.99 8.63 10.80 Coal (million tons) 3.18 3.46 3.10 3.90 Note1: Figures for FY2009 are projections. Note2: Monthly dat

30. Slide 30: Primary Management Indicators

    【Reference】Primary Management Indicators 27 TEPCO <Reference> (Fiscal year) Management Vision 2010 2002 2003 2004 2005 2006 2007 2008 Numercial Targets Profit and Free Cash Flow (FCF) ROA 3.6 3.5 4.1 4.2 4.1 1.0 0.5 － (%) 3.7 3.5 4.0 4.1 3.8 0.7 0.2 FCF 648.5 557.8 946.8 414.3 598.0 -90.9 15.3 － (bi

31. Slide 31: The Present Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    TEPCO 【Reference】 The Present Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives The Tokyo Electric Power Company, Inc. All Rights Reserved ©2009

32. Slide 32: Construct Safe, Secure, Disaster-Resistant Nuclear Power Stations

    Construct Safe, Secure, Disaster-Resistant Nuclear Power Stations 29 TEPCO Restoration Initiatives at Kashiwazaki-Kariwa Nuclear Power Station Earthquake-Resistance and Safety Improvement Initiatives Earthquake- Geological survey and Facility inspection response analysis assessment Reflects knowledg

33. Slide 33: Earthquake-Resistance

    TEPCO Overview of Status of Initiatives 30 Item Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Submission of inspection and Facility Soundness Evaluation Submitted Submitted Submitted Submitted Submitted Submitted Submitted Build- evaluation plan (Jul. 18, 2008) (Sep. 18, 2008) (Jul. 18, 2008) (Se

34. Slide 34: Status of Unit 7

    Status of Unit 7 31 TEPCO ◆ Request to Restart Operations Submitted to Local Governments －The national government has stated through the Nuclear and Industrial Safety Agency (NISA) and the Nuclear Safety Commission that restarting Unit 7 will pose no safety problems. On February 19, TEPCO submitted

35. Slide 35: Flow and Progress of Inspection and Analysis at Unit

    Flow and Progress of Inspection and Analysis at Unit 6 32 TEPCO Evaluation of Facility Soundness due to the Chuetsu-Oki Earthquake Evaluation of Earthquake Resistance and Safety Evaluation of Building and Structure Evaluation of Equipment and Evaluation of Earthquake Resistance and Safety against Gr

36. Slide 36: Basic Equipment Inspections

    【Facility Soundness Evaluation】 TEPCO Status of Progress at Each Unit 33 ◆ Status of Progress of 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

37. Slide 37: Reinforcement Work

    【Earthquake-Resistance and Safety Improvement Initiatives】 TEPCO Reinforcement Work 34 ◆ TEPCO is conducting work as needed to reinforce the earthquake resistance of key facilities. ◆ Current schedule of work planned and in progress Note: Excludes preparatory work 2008 2009 Jun. Jul. Aug. Sep. Oct.

38. Slide 38: Confirmation of Overall Plant Soundness

    Plant stable z Confirmation and testing of system 35 Final Evaluation Turbine rotation speed soundness, including the emergency core cooling system Generator output Reactor pressure z Final evaluation of testing of overall Evaluation plant function Control rod operation completed 100% Output 100% z

39. Slide 39: Governmental Inspection and Investigation System

    【Reference】 TEPCO Governmental Inspection and Investigation System 36 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

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