Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — FY2016 Q2 Earnings Presentation

46 slides from Tokyo Electric Power's earnings presentation, Oct 31, 2016

  1. Slide 1: FY2016 2nd Quarter Financial Results

    FY2016 2nd Quarter Financial Results (April 1 – September 30, 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 2nd Quarter Financial Results

    Overview of FY2016 2nd Quarter Financial Results (Released on October 31, 2016) ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  4. Slide 4: Key Points of FY2016 2nd Quarter Financial Results

    Key Points of FY2016 2nd Quarter Financial Results 1 < FY2016 2nd 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 and a decrease in electricity sales.  Ordinary expenses

  5. Slide 5: Consolidated Financial Results

    1. Consolidated Financial Results 2 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Sep(A) Apr-Sep(B) (A)-(B) (A)/(B) (% ) Operating Revenues 2,643.3 3,128.1 -484.8 84.5 Operating Income 292.8 385.0 -92.1 76.1 Ordinary Income 274.2 365.1 -90.8 75.1 Extraordinary Income 36.4 426.7 -390.3 - Extraordi

  6. Slide 6: 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-Sep*(A) Apr-Sep(B) (A)-(B) (A)/(B) (%) Lighting 39.9 41.7 -1.8 95.7 Power 79.7 82.0 -2.3 97.2 Total 119.6 123.6 -4.1 96.7 * Excluding islands. Including nation-w

  7. Slide 7: Ordinary Revenues (Consolidated)

    3. Ordinary Revenues (Consolidated) 4 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Sep(A) Apr-Sep(B) (A)-(B) (A)/(B) (%) ・Effect of fuel cost adjustments -473.0 (Operating Revenues) 2,643.3 3,128.1 -484.8 84.5 ・Decrease in electricity sales -75.0 Electricity Sales Revenues 2,211.8 2,723.5 -511.6

  8. Slide 8: Ordinary Expenses (Consolidated)

    4. Ordinary Expenses (Consolidated) 5 (Unit: Billion Yen) ・Effect of price fluctuations of exchange FY2016 FY2015 Comparison rate, CIF and others Apr-Sep(A) Apr-Sep(B) (A)-(B) (A)/(B) (%) -332.0 Personnel Expenses 169.8 178.5 -8.6 95.1 ・Decrease in thermal Fuel Expenses 496.2 851.9 -355.7 58.2 power

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

    5. Extraordinary Income/ Loss (Consolidated) 6 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Sep Apr-Sep Extraordinary Income 36.4 426.7 -390.3 Gain on change in equity 36.4 - 36.4 Grants-in-aid from NDF* - 426.7 -426.7 Extraordinary Loss 168.5 465.2 -296.7 Expenses for Nuclear Damage Compensatio

  10. Slide 10: Consolidated Financial Position

    6. Consolidated Financial Position 7 Total assets decreased 667.5 billion yen mainly due to decline in cash and deposits. Total liabilities decreased 718.0 billion yen mainly due to decline in interest-bearing debt. Equity ratio improved by 1.3%. Balance Sheets as of Mar. 31, 2016 Balance Sheets

  11. Slide 11: Supplemental Material

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

  12. Slide 12: Table of Contents

    Table of Contents Financial Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 8 Current Situation and Status of Units 1 through 4 25 Breakdown of Consolidated Ordinary Revenues 9 Overview of the Mid-to-long Term Roadmap-

  13. Slide 13: FY2016 2nd Quarter Financial Results Detailed Information

    FY2016 2nd Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  14. Slide 14: Consolidated Statements of Income

    8 Consolidated Statements of Income (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Operating Revenues 2,643.3 3,128.1 -484.8 84.5 Operating Expenses 2,350.5 2,743.1 -392.6 85.7 Operating Income 292.8 385.0 -92.1 76.1 Non-operating Revenues 33.7 35.5 -1.7 95.

  15. Slide 15: Breakdown of Consolidated Ordinary Revenues

    Breakdown of Consolidated Ordinary Revenues 9 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Ordinary Revenues 2,677.1 3,163.7 -486.5 84.6 Operating Revenues 2,643.3 3,128.1 -484.8 84.5 Operating Revenues from Electric Power Business 2,530.2 3,000.2 -470.0 8

  16. Slide 16: Breakdown of Consolidated Ordinary Expenses

    Breakdown of Consolidated Ordinary Expenses 10 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 2,402.9 2,798.6 -395.7 85.9 Operating Expenses 2,350.5 2,743.1 -392.6 85.7 Operating Expenses for Electric Power Business 2,255.1 2,640.3 -385.2 8

  17. Slide 17: Year-on-Year Comparison of Consolidated Ordinary Expenses - 1

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 1 11 Personnel expenses (¥178.5 billion to ¥169.8 billion) - ¥8.6 billion Salary and benefits (¥127.3 billion to ¥127.8 billion) +¥0.5 billion Retirement benefits (¥17.3 billion to ¥8.7 billion) - ¥8.5 billion Amortization of actuarial diff

  18. Slide 18: Year-on-Year Comparison of Consolidated Ordinary Expenses - 2

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 2 12 Maintenance expenses (¥157.2 billion to ¥149.1 billion) -¥8.1 billion Generation facilities (¥71.3 billion to ¥46.1 billion) -¥25.2 billion Hydroelectric power (¥3.0 billion to ¥2.6 billion) - ¥0.4 billion Thermal power (¥43.1 billion

  19. Slide 19: Year-on-Year Comparison of Consolidated Ordinary Expenses - 3

    13 Year-on-Year Comparison of Consolidated Ordinary Expenses - 3 Power purchasing costs (¥503.3 billion to ¥462.5 billion) - ¥40.7 billion Power purchased from other utilities (¥96.3 billion to ¥21.1 billion) - ¥75.2 billion Power purchased from other suppliers (¥406.9 billion to ¥441.3 billion) +¥3

  20. Slide 20: Increase/Decrease of Consolidated Business Performance

    Increase/ Decrease of - Year on Year Comparison 14 Consolidated Business Performance Ordinary income decreased 90.8 billion yen to 274.2 billion yen. Ordinary Income Factors related to Power Supply and Demand Others (Unit: Billion Yen) (including renewable energy) +76.5 - 167.4 Decrease Increase in

  21. Slide 21: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan Earthquake [Extraordinary Income/ Loss] 15 Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation [Extraordinary Income] (Unit: Billion Yen) FY 2010 to FY2016 Cumulative Item FY2015 Apr-Sep Amount - Grants-in-aid based on

  22. Slide 22: Consolidated Balance Sheets

    Consolidated Balance Sheets 16 (Unit: Billion Yen) <Interest-bearing debt outstanding> (Unit: Billion Yen) Sep. 30 Mar. 31 Comparison Sep. 30 Mar. 31 2016 (A) 2016 (B) (A)-(B) (A)/(B) (%) (A)-(B) 2016 (A) 2016 (B) Total Assets 12,992.2 13,659.7 -667.5 95.1 Bonds 3,280.6 3,480.6 -200.0 Fixed Assets 1

  23. Slide 23: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 17 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Sep (A) Apr-Sep(B) (A)-(B) Cash flow from operating activities 330.7 808.4 -477.6 Income / loss before income taxes and minority interests 142.0 326.5 -184.4 Depreciation and amortization 282.5 308.0 -25.4 Inte

  24. Slide 24: Overview of Consolidated Cash Flows

    Overview of Consolidated Cash Flows - Year on Year Comparison 18  Cash and cash equivalents as of September 30, 2016 decreased 401.6 billion yen to 938.2 billion yen. - Cash flow from operating activities increased 330.7 billion yen mainly due to income before income taxes and minority interests -

  25. Slide 25: Segment Information

    Segment Information 19 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Sep (A) Apr-Sep (B) (A) - (B) (A)/(B) Operating Revenues 2,643.3 3,128.1 -484.8 84.5 460.7 354.4 106.3 130.0 Holdings 27.8 20.5 7.3 135.9 812.3 1,320.3 -507.9 61.5 Fuel & Power 15.8 31.7 -15.8 50.0 815.6 829.8 -14.2 98.3 Power G

  26. Slide 26: Schedules for Corporate Bond Redemption

    [Reference] Schedules for Corporate Bond Redemption 20 (Billion Yen) Amount at Maturity (As of Sep. 30, 2016) Foreign currency-denominated bond Domestic (Private bond) *2 Domestic (Public bond) (Note) Excluding ICB (Inter-company bond) *1 Foreign currency-denominated bond (Breakdown) *2 Private bond

  27. Slide 27: Key Factors Affecting Performance and Financial Impact

    [Reference] Key Factors Affecting Performance and Financial Impact 21 Key Factors Affecting Performance Financial Impact (Sensitivity) (Unit: billion yen) FY2016 【Reference】 FY2016 【Reference】 FY2015 Actual Performance Full-year Projection Full-Year Projection FY2015 Full-Year Apr-Sep Actual Perform

  28. Slide 28: Seasonal Breakdown of Electricity Sales Volume and Total Power Generated

    [Reference] Seasonal Breakdown of Electricity Sales Volume and 22 Total Power Generated Electricity Sales Volume Unit: Billion kWh FY2016 Apr-Jun Jul Aug Sep Jul-Sep Apr-Sep Lighting 18.95 6.16 7.27 7.51 20.95 39.90 Power 37.33 13.86 14.29 14.20 42.35 79.68 Total 56.28 20.02 21.56 21.71 63.30 119.58

  29. Slide 29: Fuel Consumption

    [Reference] Fuel Consumption 23 Fuel Consumption Data 【Reference】 FY2013 FY2014 FY2015 FY2016 FY2015 Actual Actual Actual Apr-Sep Apr-Sep LNG(million tons) 23.78 23.49 21.55 9.97 10.70 Oil (million kｌ) 6.82 3.10 2.48 1.06 1.16 Coal (million tons) 7.76 7.53 8.34 4.03 4.01 Note: The oil data is total

  30. Slide 30: Feed-in Tariff Scheme for Renewable Energy

    [Reference] Feed-in Tariff Scheme for Renewable Energy 24 (Purchase Cost Collection Flow) （FY 2016 Apr-Sep) Avoidable Cost 39.3 billion yen (Green Investment Promotion Organization) Cost Bearing Adjustment Organization Generators Renewable Energy Subsidy Purchase Cost 159.8 billion yen 199.1 billion

  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. − The countermeasures for “Isolate water from contaminatio

  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 Oct. 26, 2016 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

  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. - At present, regarding plant examination

  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 cuts of 1,419.4 billion yen and 108.5 billion yen, respectively from the previous Comprehensive Special Busin

  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: Alliances with Other Companies to Increase Corporate Value

    Alliances with Other Companies to Increase Corporate Value 36  Main efforts made by TEPCO Holdings and its core operating companies are as follows. (Press releases) <TEPCO Holdings> Oct. 3, 2016 Investment in United Wind, Inc., a United States venture company that develops a customer solutions busi

  46. Slide 46: TEPCO: The Energy for Every Challenge

    T=PCO The Energy for Every Challenge

Tokyo Electric Power Company Holdings — FY2016 Q2 Earnings Presentation on 6ix