Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q2 FY2022 Earnings Presentation

49 slides from Tokyo Electric Power's earnings presentation, Nov 1, 2022

  1. Slide 1: FY2022 2nd Quarter Financial Results (April 1 – September 30, 2022)

    FY2022 2nd Quarter Financial Results (April 1 – September 30, 2022) 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 FY2022 2nd Quarter Financial Results

    Overview of FY2022 2nd Quarter Financial Results (Released on November 1, 2022) 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

  4. Slide 4: Key Points of FY2022 2nd Quarter Financial Results

    Key Points of FY2022 2nd Quarter Financial Results 1 <FY2022 2nd Quarter Financial Results> ➢ Operating revenue increased due to an increase in fuel cost adjustments resulting from a surge in fuel prices, etc. ➢ Ordinary income/loss decreased due mainly to a negative turn in the effects of the time-

  5. Slide 5: 1. Consolidated Financial Results

    1. Consolidated Financial Results 2 (Unit: Billion Yen) FY2022 FY2021 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Operating Revenue 3,505.3 2,210.7 1,294.5 158.6 Operating Income/Loss -156.0 97.0 -253.1 - Ordinary Income/Loss -238.8 101.3 -340.2 - Extraordinary Income/Loss 90.5 0.0 90.5 -

  6. Slide 6: (Reference) Key Factors Affecting Performance

    (Reference) Key Factors Affecting Performance 3 Area demand (Unit: Billion kWh) FY2022 FY2021 Comparison Apr- Sep(A) Apr- Sep(B) (A)-(B) (A)/(B) (%) Area demand 133.6 130.0 3.6 102.8 Foreign Exchange Rate/CIF FY2022 FY2021 (A)-(B) Apr-Sep(A) Apr-Sep(B) Foreign Exchange rate (Interbank, yen/dollar) 1

  7. Slide 7: 2. Overview of Each Company

    2. Overview of Each Company 4 (Unit: Billion Yen) FY2022 FY2021 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Operating Revenue 3,505.3 2,210.7 1,294.5 158.6 TEPCO Holdings (HD) 261.4 239.7 21.6 109.1 TEPCO Fuel & Power (FP) 1.9 2.6 -0.6 75.5 TEPCO Power Grid (PG) 1,241.3 866.2 375.1 143.3

  8. Slide 8: 3. Points of Each Companies

    3. Points of Each Companies 5 ➢ HD :Ordinary income decreased due mainly to a decrease in received dividends from core operating companies. ➢ FP :Ordinary income decreased due mainly to a negative turn in the effects of the time-lag from the fuel cost adjustment system at JERA. ➢ PG：Ordinary income

  9. Slide 9: 4. Consolidated Extraordinary Income/Loss

    4. Consolidated Extraordinary Income/Loss 6 (Unit: Billion Yen) FY2022 FY2021 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) Extraordinary Income 123.3 29.8 93.4 Gain on sale of shares of subsidiaries and associates ※1 123.3 - 123.3 Grants-in-Aid from the Nuclear Damage Compensation and Decommissioning

  10. Slide 10: 5. Consolidated Financial Position

    5. Consolidated Financial Position 7 ➢ Total assets balance increased by196.4 billion yen due mainly to an increase in accounts receivable. ➢ Total liabilities balance increased by 168.1 billion yen due mainly to increases in corporate bonds. ➢ Total net assets balance increased by 28.2 billion yen

  11. Slide 11: (Reference) Year-on-Year Comparisons for TEPCO Holdings

    (Reference) Year-on-Year Comparisons for TEPCO Holdings 8 Ordinary income/loss Profit Structure (Units: Billion Yen) Profit is dividend income, decommissioning charges profit, management consultation fees, wholesale Decrease in Decrease in Year-on-Year power sales of nuclear power, etc. received dep

  12. Slide 12: (Reference) Year-on-Year Comparisons for TEPCO Fuel & Power

    (Reference) Year-on-Year Comparisons for TEPCO Fuel & Power 9 Ordinary income/loss Profit Structure (Units: Billion Yen) Main profit is profit of entities accounted for using FY2021 equity method, such as generation business at JERA. Apr-Sep 7.3 Year-on-Year Timing Impact (JERA equity impact) (Units

  13. Slide 13: (Reference) Year-on-Year Comparisons for TEPCO Power Grid

    (Reference) Year-on-Year Comparisons for TEPCO Power Grid 10 Ordinary income/loss (Units: Billion Yen) Profit Structure ・Include the impact of ・Electricity procurement expenses Operating revenue is mainly transmission revenue, the last resort supply Increase in corresponding to an increase in and th

  14. Slide 14: (Reference) Year-on-Year Comparisons for TEPCO Energy Partner

    (Reference) Year-on-Year Comparisons for TEPCO Energy Partner 11 Ordinary income/loss Profit Structure Operating revenue is mainly electricity sales revenue, and (Units: Billion Yen) this is fluctuated by electricity sales volume. Impact of market price Expenses are mainly power purchasing costs and

  15. Slide 15: (Reference) Year-on-Year Comparisons for TEPCO Renewable Power

    (Reference) Year-on-Year Comparisons for TEPCO Renewable Power 12 Ordinary income/loss (Units: Billion Yen) Profit Structure ・ Include the impact from revision of depreciation method Profit is mainly wholesale power sales of hydroelectric and new energies. +2.1 Expenses is mainly for depreciation an

  16. Slide 16: Supplemental Material

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

  17. Slide 17: Table of Contents

    Table of Contents The revision of extra-high voltage and high voltage electricity rate plans Financial Results Detailed Information (standard plans) Consolidated Statements of Income 13 The revision of extra-high voltage and high voltage electricity rate plans 21 The status of Grants–in-aid from Nuc

  18. Slide 18: FY2022 2nd Quarter Financial Results Detailed Information

    FY2022 2nd Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  19. Slide 19: Consolidated Statements of Income

    Consolidated Statements of Income 13 (Unit: Billion Yen) FY2022 FY2021 Comparison Apr-Sep(A) Apr-Sep(B) (A)-(B) (A)/(B) (%) Operating Revenue 3,505.3 2,210.7 1,294.5 158.6 Operating Expenses 3,661.4 2,113.7 1,547.6 173.2 Operating Income / Loss -156.0 97.0 -253.1 － Non-operating Revenue 3.8 31.9 -28

  20. Slide 20: Grants-in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation

    The status of Grants-in-aid from Nuclear Damage Compensation and Decommissioning Facilitation 14 Corporation and Expenses for Nuclear Damage Compensation (Unit: Billion Yen) FY2022 Cumulative Item FY2010 to FY2021 Apr-Sep Amount ◇Grants-in-aid from Nuclear Damage Compensation and Decommissioning Fac

  21. Slide 21: Consolidated Balance Sheets

    Consolidated Balance Sheets 15 (Unit: Billion Yen) <Interest-bearing debt outstanding> (Unit: Billion Yen) Sep. 30 Mar. 31 Comparison Sep. 30 Mar. 31 (A)-(B) 2022 (A) 2022 (B) (A)-(B) (A)/(B) (%) 2022 (A) 2022 (B) Bonds 3,310.4 3,100.4 210.0 Total Assets 13,049.9 12,853.5 196.4 101.5 Long-term Debt

  22. Slide 22: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 16 (Unit: Billion Yen) FY2022 FY2021 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) Cash flow from operating activities -173.1 96.2 -269.4 Income / loss before income taxes -138.8 101.2 -240.0 Depreciation and amortization 168.7 207.3 -38.6 Increase (decrease) in de

  23. Slide 23: Overview of Consolidated Cash Flows

    Overview of Consolidated Cash Flows - Year on Year Comparison 17 Cash and cash equivalents as of September 30, 2022 decreased 21.2 billion yen to 840.5 billion yen. - Cash flow from operating activities decreased 173.1 billion yen mainly due to loss before income taxes - Cash flow from investing act

  24. Slide 24: Key Factors Affecting Performance

    Key Factors Affecting Performance 18 ※１ Total of EP consolidated (EP/TCS/PinT) and PG (islands, etc.) Key Factors Affecting Performance（Results） ※２ Total (excluding indirect auctions) of EP consolidated (EP/TCS/PinT), PG (including inter-regional), and RP consolidated (RP/Tokyo Electric Generation)

  25. Slide 25: Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated

    Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated 19 Retail Electricity Sales Volume（EP consolidated） Unit: Billion kWh FY2022 Apr-Jun Jul Aug Sep Jul-Sep Apr-Sep Lighting 12.62 4.63 5.37 4.83 14.83 27.45 Power 28.77 11.21 11.42 10.72 33.35 62.12 Total 41.39 15.84 16.79

  26. Slide 26: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 20 Amount at Maturity (As of Sep. 30, 2022) (Billion Yen) TEPCO Public Bond TEPCO Power Grid Public Bond TEPCO Renewable Power Public Bond (FY) Note: The amount redeemed for Apr. - Sep. of fiscal 2022 totaled 120.0 billion yen. ©Tokyo Electric Power Company Holdi

  27. Slide 27: The revision of extra-high voltage and high voltage electricity rate plans (standard plans)

    The revision of extra-high voltage and high voltage electricity rate plans (standard plans) ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  28. Slide 28: Revision of extra-high voltage and high voltage electricity rate plans -1

    The revision of extra-high voltage and high voltage electricity rate plans (standard plans) -1 21 ✓ On September 20, 2022, TEPCO announced the revision of the extra-high voltage and high voltage electricity rate plans (Tokyo area) in response to the global surge in resource prices that will go into

  29. Slide 29: Revision of extra-high voltage and high voltage electricity rate plans -2

    The revision of extra-high voltage and high voltage electricity rate plans (standard plans) -2 22 ➢ Market price adjustment surcharge The market price adjustment surcharge will be calculated by multiplying the standard market unit price with the difference between the monthly average market price an

  30. Slide 30: Initiatives to Reduce the Burden on Our Customers -1

    Initiatives to Reduce the Burden on Our Customers -1 23 ✓ As part of the energy conservation measures, in addition to the existing demand-response (hereinafter DR) contracts, new DR contracts were signed (approx. 10,000 contracts saving almost 17,000 MWh) for the corporate sector and a energy conser

  31. Slide 31: Initiatives to Reduce the Burden on Our Customers -2

    Initiatives to Reduce the Burden on Our Customers -2 24 ✓ Starting in FY2023, we will start measures to the introduction of equipment that helps realize a carbon neutral society with our customers to reduce our customers’ electricity bill. (We are considering introducing this program as early as wit

  32. Slide 32: Status of response to the series of incidents including a nuclear material protection incident

    Status of response to address the series of incidents including a nuclear material protection incident ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  33. Slide 33: 3 Verification Policies Approved by the NRA and TEPCO's Response Policy

    Status of response to address the series of incidents including a nuclear material protection incident 25 Nuclear reform measures ✓ Based on the Improvement Report for the Inappropriate Use of ID Cards and the Partial Loss of Function of the Physical Protection Facilities at the Kashiwazaki Kariwa N

  34. Slide 34: 36 countermeasures included in the improvement measure plan

    Status of response to address the series of incidents including a nuclear material protection incident 26 36 countermeasures included in the improvement measure plan Improvement measure Improvement measure ① Reconstruction of physical protection governance ⑲ Create equipment maintenance system ② Mon

  35. Slide 35: Concrete measures (Verification Policy 1 and 2)

    Status of response to address the series of incidents including a nuclear material protection incident 27 Concrete measures ( Verification Policy 1 and 2 ) Verification Policy 1 Response to 【Realize robust physical protection】 Applied for physical protection ➢ Various equipment-based measures were i

  36. Slide 36: Concrete measures (Verification Policy 3)

    Status of response to address the series of incidents including a nuclear material protection incident 28 Concrete measures ( Verification Policy 3 ) Verification Policy 3 TEPCO response policy to 【Build a mechanism to make sure improvements are not temporary】 ➢ Management will identify deterioratin

  37. Slide 37: General inspections after discovering partially incomplete safety measure renovations

    General inspections implemented after discovering partially incomplete safety measure renovations 29 ✓ Around of the comprehensive inspections of incomplete renovations that had been implemented under a project structure was completed in September 20, 2022. Including the areas announced in September

  38. Slide 38: 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.

  39. Slide 39: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 30 ✓ Spent fuel removal from Units 3 & 4 is complete. ✓ Currently, preparation for Units 1 & 2 spent fuel removal and Units 1-3 fuel debris retrieval is being conducted. Main decommissioning work and steps ✓Please visit our website for latest informa

  40. Slide 40: Milestones and progress in the 5th revision of Mid-and-Long-Term Roadmap

    Milestones and progress in the 5th revision of Mid-and-Long-Term Roadmap(December 2019) 31 *To accommodate the effects of COVID-19 and to ensure the safety and reliability of the work, Maintain Overall Framework of Decommissioning Schedule the trial removal was rescheduled to start in the second hal

  41. Slide 41: Fuel Debris Retrieval Schedule and Process

    Fuel Debris Retrieval Schedule and Process Based upon the Mid-to-Long Term Decommissioning Implementation Plan 2022 32 ✓ The Decommissioning Long-term Implementation Plan 2022 was published on March 31, 2022 with the progress made in decommissioning work and new challenges identified in FY2021. ✓ Re

  42. Slide 42: Contaminated Water Measures

    Contaminated Water Measures 33 ✓ Progress is being made on the three contaminated water initiatives detailed in the 5th revision of the Mid-and-long-term Roadmap (December 2019). (1) Initiative to promote contaminated water measures following the three basic policies (1) Remove the contamination sou

  43. Slide 43: Response Regarding Handling of ALPS Treated Water – 1

    TEPCO Holdings’ Response Regarding the Handling of ALPS Treated Water – 1 TEPCO Holdings’ Approach to the Discharge of ALPS Treated Water 34 ✓ The “Basic Policy on handling of ALPS treated water at the Tokyo Electric Power Company Holdings’ Fukushima Daiichi Nuclear Power Station” (hereinafter gover

  44. Slide 44: Response Regarding Handling of ALPS Treated Water – 2

    TEPCO Holdings’ Response Regarding the Handling of ALPS Treated Water – 2 Status of Review Regarding Design and Operation of Necessary Facilities and plan going forward 35 ✓ In August 2021, the state of discussions on the handling of ALPS treated water was announced. In December 2021, the details of

  45. Slide 45: Transition Plan to Achieve Carbon Neutrality

    Transition Plan to Achieve Carbon Neutrality ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  46. Slide 46: Transition Plan to Achieve Carbon Neutrality

    Transition Plan to Achieve Carbon Neutrality See p.40 of the TEPCO Integrated Report 2022 for details 36 ➢ The TEPCO Group is transitioning to the business model centered on carbon neutrality. In the TEPCO Integrated Report 2022 issued in October 6, 2022, it announced Transition Plan that reflects t

  47. Slide 47: Other Initiatives

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

  48. Slide 48: Main Efforts to Increase Corporate Value -1

    Main Efforts to Increase Corporate Value -1 37 ＜TEPCO Holdings＞ July 19, 2022 Together with Michinori Holdings, Kanto Transportation Inc., Fukushima Transportation Inc., Ibaraki Transportation Inc., TEPCO Holdings started a demonstration project for the development and technology verification and de

  49. Slide 49: Main Efforts to Increase Corporate Value -2

    Main Efforts to Increase Corporate Value -2 38 ＜TEPCO Energy Partner＞ July 14, 2022 The PPA Service "Enekari Plus" was adopted by Gunma Prefecture for "Gunma Zero Upfront Cost Residential Photovoltaic Power Generation Equipment Project" where solar panels and storage batteries can be installed with

Tokyo Electric Power Company Holdings — Q2 FY2022 Earnings Presentation on 6ix