Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q2 FY2015 Earnings Presentation

51 slides from Tokyo Electric Power's earnings presentation, Oct 29, 2015

  1. Slide 1: FY2015 2nd Quarter Earnings Results

    FY2015 2nd Quarter Earnings Results (April 1 – September 30, 2015) Tokyo Electric Power Company October 29, 2015 © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  2. Slide 2: Regarding Forward-Looking Statements

    Regarding Forward-Looking Statements 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 about the future, which inherently

  3. Slide 3: Overview of FY2015 2nd Quarter Earnings Results

    Overview of FY2015 2nd Quarter Earnings Results © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  4. Slide 4: Key Points of FY2015 Q2 Earnings Results and Full-Year Forecasts

    Key Points of FY2015 Q2 Earnings Results and Full-Year Forecasts 1 Ordinary income achieved profits in FY2015 Q2 for the third consecutive year. < FY2015 Q2 Earnings Results > - Operating revenues decreased compared to the corresponding period of the previous fiscal year mainly due to fuel cost adju

  5. Slide 5: Consolidated Earnings Results - Year on Year Comparison

    1. Consolidated Earnings Results - Year on Year Comparison 2 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Sep(A) Apr-Sep(B) (A)-(B) (A)/(B) (% ) Operating Revenues 3,128.1 3,334.1 -205.9 93.8 Operating Income 385.0 283.3 101.7 135.9 Ordinary Income 365.1 242.8 122.2 150.4 Extraordinary Income 42

  6. Slide 6: Non-Consolidated Earnings Results - Year on Year Comparison

    2．Non-Consolidated Earnings Results - Year on Year Comparison 3 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Sep(A) Apr-Sep(B) (A)-(B) (A)/(B) (% ) Operating Revenues 3,050.0 3,259.5 -209.5 93.6 Operating Income 368.3 265.2 103.1 138.9 Ordinary Income 338.4 214.6 123.7 157.7 Extraordinary Income

  7. Slide 7: Power Demand and Supply - Year on Year Comparison

    3. Power Demand and Supply - Year on Year Comparison 4 Electricity Sales Volume (Unit: Billion kWh) FY2015 FY2014 Comparison Decrease in demand Apr-Sep(A) Apr-Sep(B) (A)-(B) (A)/(B) (%) of liberalized segment Lighting 41.7 41.2 0.4 101.0 due to the delayed Power 5.0 5.0 -0.0 99.6 recovery of product

  8. Slide 8: Key Factors Affecting Performance - Year on Year Comparison

    4. Key Factors Affecting Performance - Year on Year Comparison 5 FY2015 FY2014 (A)-(B) Apr-Sep(A) Apr-Sep(B) Foreign Exchange Rate (Interbank, yen/dollar) 121.9 103.0 18.9 Crude Oil Prices (All Japan CIF, dollar/barrel) 58.9 109.5 -50.6 LNG Prices (All Japan CIF, dollar/barrel) 53.3 93.3 -40.0 <Fluc

  9. Slide 9: Income and Expenditure (Non-Consolidated): Revenues

    5. The Status of Income and Expenditure (Non-Consolidated) - Year on Year Comparison 6 (1) Revenues (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Sep(A) Apr-Sep(B) (A)-(B) (A)/(B) (%) (Operating Revenues) 3,050.0 3,259.5 -209.5 93.6 Electricity Sales Revenues 2,723.5 2,956.8 -233.3 92.1 ・Decrease

  10. Slide 10: Income and Expenditure (Non-Consolidated): Expenditures

    6. The Status of Income and Expenditure (Non-Consolidated) - Year on Year Comparison 7 (2) Expenditures (Unit: Billion Yen) ・Decrease in thermal power FY2015 FY2014 Comparison generation -72.0 ・Effect of fluctuations of Apr-Sep(A) Apr-Sun(B) (A)-(B) (A)/(B) (%) exchange rate and CIF Personnel Expens

  11. Slide 11: Increase/Decrease of Consolidated Business Performance

    7．Increase/Decrease of Consolidated Business Performance - Year on Year Comparison 8  Ordinary Income increased 122.2 billion yen to 365.1 billion yen. Ordinary Income Increase in maintenance Factors related to Power Supply and Demand expenses and other (Unit: Billion Yen) (including renewable ener

  12. Slide 12: Extraordinary Income/Loss (Consolidated)

    8. Extraordinary Income/Loss (Consolidated) - Year on Year Comparison 9 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Sep Apr-Jun Extraordinary Income 426.7 512.5 -85.8 Grants-in-aid from NDF* 426.7 512.5 -85.8 Extraordinary Loss 465.2 445.9 19.2 Expenses for Nuclear Damage 465.2 445.9 19.2 Compe

  13. Slide 13: Consolidated Financial Position

    9．Consolidated Financial Position 10 - Total assets increased 235.7 billion yen mainly due to increase in cash and deposits. - Total liabilities decreased 80.5 billion yen mainly due to decline in interest-bearing debt. - Equity ratio improved by 1.9%. Balance Sheets as of Mar.31, 2015 Balance Sheet

  14. Slide 14: Consolidated Cash Flow

    10．Consolidated Cash Flow 11  Cash flow from operating activities increased 808.4 billion yen mainly due to increase in electricity sales revenues.  Cash flow from investing activities decreased 278.0 billion yen mainly due to purchases of property, plant and equipment.  Cash flow from financing

  15. Slide 15: Supplemental Material

    Supplemental Material © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  16. Slide 16: Table of Contents

    Table of Contents Earnings Results Detailed Information Other Initiatives Consolidated Statements of Income 12 Implementation of the Streamlining Policy 28 Breakdown of Non-Consolidated Ordinary Revenues 13 Efforts towards Nuclear Reform Breakdown of Non-Consolidated Ordinary Expenses 14 Framework f

  17. Slide 17: FY2015 2nd Quarter Earnings Results Detailed Information

    FY2015 2nd Quarter Earnings Results Detailed Information © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  18. Slide 18: Consolidated Statements of Income

    Consolidated Statements of Income 12 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Operating Revenues 3,128.1 3,334.1 -205.9 93.8 Operating Expenses 2,743.1 3,050.8 -307.6 89.9 Operating Income 385.0 283.3 101.7 135.9 Non-operating Revenues 35.5 31.0 4.4 11

  19. Slide 19: Breakdown of Non-Consolidated Ordinary Revenues

    Breakdown of Non-Consolidated Ordinary Revenues 13 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Ordinary Revenues 3,074.9 3,279.6 -204.7 93.8 Operating Revenues 3,050.0 3,259.5 -209.5 93.6 Operating Revenues from Electric Power Business 3,000.2 3,201.8 -20

  20. Slide 20: Breakdown of Non-Consolidated Ordinary Expenses

    Breakdown of Non-Consolidated Ordinary Expenses 14 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 2,736.5 3,065.0 -328.5 89.3 Operating Expenses 2,681.6 2,994.3 -312.6 89.6 Operating Expenses for Electric Power Business 2,640.3 2,942.9 -302

  21. Slide 21: Year-on-Year Comparison of Non-Consolidated Ordinary Expenses (1)

    Year-on-Year Comparison of Non-Consolidated Ordinary Expenses (1) 15 Personnel expenses (¥185.6 billion to ¥178.5 billion) - ¥7.1 billion Salary and benefits (¥130.9 billion to ¥127.3 billion) - ¥3.6 billion Retirement benefits (¥19.9 billion to ¥17.3 billion) - ¥2.6 billion Amortization of actuaria

  22. Slide 22: Year-on-Year Comparison of Non-Consolidated Ordinary Expenses (2)

    Year-on-Year Comparison of Non-Consolidated Ordinary Expenses (2) 16 Maintenance expenses (¥129.6 billion to ¥157.2 billion) +¥27.5 billion Generation facilities (¥50.1 billion to ¥71.3 billion) +¥21.1 billion Hydroelectric power (¥3.5 billion to ¥3.0 billion) - ¥0.5 billion Thermal power (¥35.3 bil

  23. Slide 23: Year-on-Year Comparison of Non-Consolidated Ordinary Expenses (3)

    Year-on-Year Comparison of Non-Consolidated Ordinary Expenses (3) 17 Power purchasing costs (¥492.0 billion to ¥503.3 billion) +¥11.2 billion Power purchased from other utilities (¥101.7 billion to ¥96.3 billion) - ¥5.4 billion Main Factors for Increase/Decrease Power purchased from other suppliers

  24. Slide 24: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan Earthquake [Extraordinary Income/Loss, Non-Consolidated] 18 Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation [Extraordinary Income] (Unit: Billion Yen) FY 2010 to FY2015 Cumulative Item FY2014 FY2013 AprSep Amount -

  25. Slide 25: Consolidated and Non-Consolidated Balance Sheets

    Consolidated and Non-Consolidated Balance Sheets 19 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion Yen) Sep. 30 Mar. 31 Comparison 2015 (A) 2015 (B) (A)-(B) (A)/(B) (%) <Interest-bearing debt outstanding> (Consolidated) 14,448.4 14,212.6 235.7 101.

  26. Slide 26: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 20 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) Cash flow from operating activities 808.4 313.2 495.1 Income / loss before income taxes and minority interests 326.5 309.1 17.3 Depreciation and amortization 308.0 314.1 -6.1 Interes

  27. Slide 27: Segment Information

    Segment Information 21 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Sep (A) Apr-Sep (B) (A) - (B) (A)/(B) (%) Operating Revenues 3,128.1 3,334.1 -205.9 93.8 1,320.3 1,699.1 -378.8 77.7 Fuel & Power Company 31.7 50.3 -18.6 63.0 829.8 719.8 110.0 115.3 Power Grid Company 82.3 58.5 23.8 140.7 3,084

  28. Slide 28: [Reference] FY2015 Key Factors Affecting Performance and Financial Impact

    [Reference] FY2015 Key Factors Affecting Performance and Financial Impact 22 FY2015 Key Factors Affecting Performance First Half Full-year Projection Actual (As of Oct. 29) (As of Jul. 29) Electricity Sales Volume (billion kWh) 123.6 256.8 259.3 Crude Oil Prices (All Japan CIF; dollars per barrel) 5

  29. Slide 29: [Reference] Seasonal Breakdown of Electricity Sales

    [Reference] Seasonal Breakdown of Electricity Sales - Sales Volume, Total Power Generated and Purchased 23 (Units: Billion kWh, %) Full-year Outlook FY2014 FY2015 for FY2015 Electricity Sales Volume 2nd 2nd Latest Projection Jul. Aug. Sep. Apr-Sep Full year Jul. Aug. Sep. Apr-Sep Quarter Quarter Pro

  30. Slide 30: [Reference] Recent Demand Trend of Large-Scale Industries

    [Reference] Recent Demand Trend of Large-Scale Industries 24 - Electricity sales volume to large-scale industrial customers in the second quarter of fiscal 2015 decreased 3.8% due to decrease year-on-year sales growth in industries such as Paper & pulp, Chemicals, Ceramics & stone, Ferrous metals, N

  31. Slide 31: [Reference] Fuel Consumption and Procurement

    [Reference] Fuel Consumption and Procurement 25 Fuel Consumption Data and Projection 【Reference】 FY2015 FY2015 【Reference】 FY2012 FY2013 FY2014 FY2015 Full-year Full-year Apr-Sep FY2014 Actual Actual Actual Outlook Apr-Sep Actual Outlook (as of July 29) Actual LNG(million tons) 23.71 23.78 23.49 － －

  32. Slide 32: [Reference] Historical Prices of CIF Crude Oil, Fuel Coal and LNG

    [Reference] Historical Prices of CIF Crude Oil, Fuel Coal and LNG 26 (＄/b･t) (＄/t) Crude Oil Fuel Coal LNG (Right-hand Scale) Note: Preliminary figures are used for August and September, 2015. © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  33. Slide 33: [Reference] Schedules for Corporate Bond Redemption

    [Reference] Schedules for Corporate Bond Redemption (Non-consolidated) 27 (Billion Yen) *2 *1 Foreign currency-denominated bond (Breakdown) *2 Private bond (Breakdown) *1 *2 *2 *2 *2 *2 *2 (FY) Note: The amount redeemed for Apr-Sep of fiscal 2015 totaled 388.1 billion yen. © 2015 Tokyo Electric Powe

  34. Slide 34: FY2015 2nd Quarter Earnings Results Other Initiatives

    FY2015 2nd Quarter Earnings Results Other Initiatives © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  35. Slide 35: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 28 <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 Busine

  36. Slide 36: Efforts towards Nuclear Reform - Framework for Nuclear Reform

    Efforts towards Nuclear Reform - 1 [Reference] Framework for Nuclear Reform 29 − 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

  37. Slide 37: Report on status of the Nuclear Safety Reform Plan

    Efforts towards Nuclear Reform - 2 Report on status of the Nuclear Safety Reform Plan 30 − The 9th Nuclear Reform Monitoring Committee meeting was held on August 24. The Committee’s evaluation was that “activities at all levels from TEPCO’s top management, nuclear power leaders and management down t

  38. Slide 38: TEPCO Group Company Branding for the New Holding Company System

    TEPCO Group Company Branding for the New Holding Company System 31 − On August 18, 2015, TEPCO finalized the new brand for TEPCO Group after the transition to a holding company system. − The new brand slogan is “The Energy for Every Challenge”. “Challenge”: TEPCO aims to be the chosen partner in thi

  39. Slide 39: Operational Alliances with Other Companies in Retail Sector

    Operational Alliances with Other Companies in Retail Sector 32 − In order to win out over the competition after full liberalization of the electricity market in April 2016 and increase TEPCO’s corporate value, product capability needs to be created so as to continually provided attractive services a

  40. Slide 40: The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives

    The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  41. Slide 41: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 33 - 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

  42. Slide 42: Mid-to-long Term Roadmap towards Decommissioning of Fukushima Daiichi (1)

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station (1) 34 - TEPCO released “Mid-to-long Term Roadmap towards the decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4” in December, 2011. Based on the continually-revi

  43. Slide 43: Mid-to-long Term Roadmap towards Decommissioning of Fukushima Daiichi (2)

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station (2) 35 <Main target process of the Decommissioning> Previous Future efforts Area efforts Phase 2 (until commencement of fuel debris removal) Phase 3 (until decommissioning completed) Curre

  44. Slide 44: Contaminated water management

    Contaminated water management 36 − 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. − In this quarter, the countermeasures for “Isolate water

  45. Slide 45: Our Commitment to Nuclear Damage Compensation

    Our Commitment to Nuclear Damage Compensation 37 - To facilitate prompt and fair compensation for nuclear damages, TEPCO continues to set and announce its own detailed compensation guidelines and procedures to individuals and business entities based on Government’s Interim Guideline which comprehens

  46. Slide 46: Compensation Support by Nuclear Damage Compensation and Decommissioning Facilitation Corporation

    Compensation Support by Nuclear Damage Compensation and Decommissioning 38 Facilitation Corporation - After the enactment of the Nuclear Damage Liability Facilitation Fund Act, the Fund was officially established in September 2011. - Due to the partial revision of the Nuclear Damage Liability Facili

  47. Slide 47: The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  48. Slide 48: Main Measures to Secure Safety (1) [Outline]

    Main Measures to Secure Safety (1) [Outline] 39  We promote the following measures to secure further safety after the Tohoku-Chihou-Taiheiyo-Oki Earthquake. I. Installation of flooding embankment III. Further enhancement of heat removal and III. Further enhancement of heat III. Further enhancement

  49. Slide 49: Main Measures to Secure Safety (2) [Implementation Status]

    Main Measures to Secure Safety (2) [Implementation Status] 40 As of October 21, 2015 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 (fl

  50. Slide 50: Compliance Review under the New Regulatory Requirements(1)

    Compliance Review under the New Regulatory Requirements(1) 41 - In November 2013, the Nuclear Regulation Authority (NRA) started plant and earthquake/tsunami countermeasures reviews as to the compliance under the New Regulatory Requirements for the Kashiwazaki-Kariwa Nuclear Power Station Units 6 an

  51. Slide 51: Compliance Review under the New Regulatory Requirements(2)

    Compliance Review under the New Regulatory Requirements(2) 42 - At Review Meeting on August 6, 2015, Kashiwazaki-Kariwa Nuclear Power Station Units 6 and 7 were selected as plants for intensive review. ＜Review Status regarding Plant Examination＞ Since the beginning, the reviews of five BWR plants h

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