Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q2 FY2017 Earnings Presentation

49 slides from Tokyo Electric Power's earnings presentation, Oct 31, 2017

  1. Slide 1: FY2017 2nd Quarter Financial Results

    FY2017 2nd Quarter Financial Results (April 1 – September 30, 2017) 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 FY2017 2nd Quarter Financial Results

    Overview of FY2017 2nd Quarter Financial Results (Released on October 31, 2017) ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  4. Slide 4: Key Points of FY2017 2nd Quarter Financial Results

    Key Points of FY2017 2nd Quarter Financial Results 1 < FY2017 2nd Quarter Financial Results >  Ordinary revenue increased due to an increase in electricity sales revenue from a rise in fuel cost adjustments and others while electricity sales volume decreased.  Ordinary expenses increased due to th

  5. Slide 5: 1. Consolidated Financial Results

    1. Consolidated Financial Results 2 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (% ) Operating Revenue 2,831.6 2,643.3 188.2 107.1 Operating Income 237.7 292.8 -55.0 81.2 Ordinary Income 215.9 274.2 -58.2 78.8 Extraordinary Income 128.6 36.4 92.1 - Extraordin

  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) FY2017 FY2016 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Lighting 37.6 39.9 -2.3 94.2 Power 77.4 79.7 -2.2 97.2 Total 115.0 119.6 -4.5 96.2 * Excluding islands. Including nation-

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

    3. Ordinary Revenue (Consolidated) 4 (Unit: Billion Yen) FY2017 FY2016 Comparison ・Decrease in Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) electricity sales volume: - 91.0 (Operating Revenue) 2,831.6 2,643.3 188.2 107.1 ・Rise in fuel cost adjustments:+105.0 Electricity Sales Revenue 2,241.0 2,211.8

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

    4. Ordinary Expenses (Consolidated) 5 (Unit: Billion Yen) FY2017 FY2016 Comparison ・Effect of price fluctuations Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) of exchange rate, fuel Personnel Expenses 163.9 169.8 -5.8 96.5 prices (CIF) and others: + 142.0 Fuel Expenses 609.2 496.2 112.9 122.8 ・Decreas

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

    5. Extraordinary Income/ Loss (Consolidated) 6 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Sep Apr-Sep Extraordinary Income 128.6 36.4 92.1 Grants-in-aid from NDF* 128.6 － 128.6 Gain on change in equity - 36.4 -36.4 Extraordinary Loss 110.2 168.5 -58.2 Expenses for Nuclear Damage Compensation 1

  10. Slide 10: 6. Consolidated Financial Position

    6. Consolidated Financial Position 7  Total assets decreased 279.3 billion yen primarily due to a decrease in grants-in-aid receivable from NDF.  Total liabilities decreased 468.9 billion yen primarily due to a decrease in provision for nuclear damage compensation.  Total net assets increased 189

  11. Slide 11: 7. FY2017 Full-Year Financial Forecasts

    7. FY2017 Full-Year Financial Forecasts 8 (Unit: Billion Yen) FY2017 Projections FY2017 Projections (released on Oct. 31, (released on Jul. 28, FY2016 Results 2017) 2017) Operating Revenue 5,750 5,750 5,357.7 Ordinary Income 200 200 227.6 Extraordinary Income/ Loss 98 98 -80.6 Net Income attributabl

  12. Slide 12: 8. FY2017 Full-Year Financial Forecasts (Key Factors/Financial Impact)

    8. FY2017 Full-Year Financial Forecasts 9 (Key Factors Affecting Performance/ Financial Impact) Key Factors Affecting Performance FY2017 Projections FY2017 Projections (released on Oct. 31, (released on Jul. 28, FY2016 Results 2017) 2017) Electricity Sales Volume (billion kWh) 233.2 235.2 241.5 Crud

  13. Slide 13: Supplemental Material

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

  14. Slide 14: Table of Contents

    Table of Contents Financial Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 10 Current Situation and Status of Units 1 through 4 27 Breakdown of Consolidated Ordinary Revenue 11 Key Points from the 4th Revision of the

  15. Slide 15: FY2017 2nd Quarter Financial Results Detailed Information

    FY2017 2nd Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  16. Slide 16: Consolidated Statements of Income

    10 Consolidated Statements of Income (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Operating Revenue 2,831.6 2,643.3 188.2 107.1 Operating Expenses 2,593.9 2,350.5 243.3 110.4 Operating Income 237.7 292.8 -55.0 81.2 Non-operating Revenue 22.8 33.7 -10.9 67.

  17. Slide 17: Breakdown of Consolidated Ordinary Revenue

    Breakdown of Consolidated Ordinary Revenue 11 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Ordinary Revenue 2,854.4 2,677.1 177.3 106.6 Operating Revenue 2,831.6 2,643.3 188.2 107.1 Operating Revenue from Electric Power Business 2,677.5 2,530.2 147.3 105.8

  18. Slide 18: Breakdown of Consolidated Ordinary Expenses

    Breakdown of Consolidated Ordinary Expenses 12 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 2,638.5 2,402.9 235.6 109.8 Operating Expenses 2,593.9 2,350.5 243.3 110.4 Operating Expenses for Electric Power Business 2,455.4 2,255.1 200.3 10

  19. Slide 19: Year-on-Year Comparison of Consolidated Ordinary Expenses - 1

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 1 13 Personnel expenses (¥169.8 billion to ¥163.9 billion) - ¥5.8 billion Salary and benefits (¥127.8 billion to ¥120.4 billion) - ¥7.4 billion Retirement benefits (¥8.7 billion to ¥13.2 billion) +¥4.4 billion Amortization of actuarial diff

  20. Slide 20: Year-on-Year Comparison of Consolidated Ordinary Expenses - 2

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 2 14 Maintenance expenses (¥149.1 billion to ¥135.3 billion) - ¥13.8 billion Generation facilities (¥46.1 billion to ¥50.6 billion) +¥4.5 billion Hydroelectric power (¥2.6 billion to ¥3.1 billion) +¥0.5 billion Thermal power (¥29.3 billion

  21. Slide 21: Year-on-Year Comparison of Consolidated Ordinary Expenses - 3

    15 Year-on-Year Comparison of Consolidated Ordinary Expenses - 3 Taxes and other public charges (¥153.4 billion to ¥154.7 billion) +¥1.3 billion Charge for occupancy of roads (¥13.9 billion to ¥14.2 billion) +¥0.3 billion Enterprise tax (¥25.8 billion to ¥26.1 billion) +¥0.2 billion Nuclear power ba

  22. Slide 22: Increase/Decrease of Consolidated Business Performance

    Increase/ Decrease of - Year on Year Comparison 16 Consolidated Business Performance Ordinary income decreased 58.2 billion yen to 215.9 billion yen. Ordinary Income Factors related to Power Supply and Demand Others (Unit: Billion Yen) (including renewable energy) + 79.9 - 138.2 Foreign Foreign Exc

  23. Slide 23: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan Earthquake 17 (Unit: Billion Yen) FY2017 Cumulative Item FY2010 to FY2016 Apr-Sep Amount ◇Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation ○Grants-in-aid based on Nuclear Damage Compensation and Decommissioning *1 *2

  24. Slide 24: Consolidated Balance Sheets

    Consolidated Balance Sheets 18 <Interest-bearing debt outstanding> (Unit: Billion Yen) (Unit: Billion Yen) Sep. 30 Mar. 31 Comparison Sep. 30 Mar. 31 2017 (A) 2017 (B) (A)-(B) (A)/(B) (%) (A)-(B) 2017 (A) 2017 (B) Total Assets 11,998.2 12,277.6 -279.3 97.7 Bonds 2,373.3 3,205.9 -832.5 Fixed Assets 1

  25. Slide 25: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 19 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Sep (A) Apr-Sep(B) (A)-(B) Cash flow from operating activities 291.2 330.7 -39.5 Income / loss before income taxes and minority interests 234.2 142.0 92.1 Depreciation and amortization 278.8 282.5 -3.6 Interest

  26. Slide 26: Overview of Consolidated Cash Flows

    Overview of Consolidated Cash Flows - Year on Year Comparison 20  Cash and cash equivalents as of September 30, 2017 decreased 83.3 billion yen to 856.9 billion yen. - Cash flow from operating activities increased 291.2 billion yen mainly due to income before income taxes and minority interests - C

  27. Slide 27: Segment Information

    Segment Information 21 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) Operating Revenue 2,831.6 2,643.3 188.2 107.1 409.1 460.7 -51.5 88.8 Holdings 25.2 27.8 -2.6 90.4 827.5 812.3 15.1 101.9 Fuel & Power 8.7 15.8 -7.1 54.9 835.6 815.6 19.9 102.4 Power Grid 173.5

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

    [Reference] Key Factors Affecting Performance and Financial Impact 22 Key Factors Affecting Performance Financial Impact (Sensitivity) （Unit: Billion Yen） FY2017 【Reference】 FY2017 【Reference】 Apr-Sep Full-year Projections FY2016 Actual Performance Full-year Projections FY2016 Full-year Results Actu

  29. Slide 29: [Reference] Seasonal Breakdown of Electricity Sales Volume and Total Power Generated

    [Reference] Seasonal Breakdown of Electricity Sales Volume and 23 Total Power Generated Electricity Sales Volume Unit: Billion kWh FY2017 Apr-Jun Jul Aug Sep Jul-Sep Apr-Sep Lighting 17.83 6.41 6.97 6.39 19.76 37.60 Power 36.43 13.77 13.98 13.27 41.02 77.45 Total 54.27 20.18 20.95 19.65 60.78 115.05

  30. Slide 30: [Reference] Fuel Consumption

    [Reference] Fuel Consumption 24 Fuel Consumption Data 【Reference】 FY2014 FY2015 FY2016 FY2017 FY2016 Actual Actual Actual Apr-Sep Apr-Sep LNG(million tons) 23.49 21.55 21.06 9.57 9.97 Oil (million kｌ) 3.10 2.48 2.05 0.33 1.06 Coal (million tons) 7.53 8.34 8.14 4.19 4.03 Note: The oil data is total o

  31. Slide 31: [Reference] Feed-in Tariff Scheme for Renewable Energy

    [Reference] Feed-in Tariff Scheme for Renewable Energy 25 (Purchase Cost Collection Flow) （FY 2017 Apr.- Sep.) Avoidable Cost 58.1 billion yen (Green Investment Promotion Organization) Cost Bearing Adjustment Organization Generators Renewable Energy Subsidy Purchase Cost 189.1 billion yen 247.2 bill

  32. Slide 32: [Reference] Schedules for Public Bond Redemption

    [Reference] Schedules for Public Bond Redemption 26 (Billion Yen) Amount at Maturity (As of Sep. 30, 2017) TEPCO Public Bond TEPCO Power Grid Public Bond (FY) Note: The amount redeemed for Apr.- Sep. of fiscal 2017 totaled 385.1 billion yen. ©Tokyo Electric Power Company Holdings, Inc. All Rights Re

  33. Slide 33: 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.

  34. Slide 34: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 27 - 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

  35. Slide 35: Key Points from the 4th Revision of the Mid-and-Long-Term Roadmap

    Key Points from the 4th Revision of the Mid-and-Long-Term Roadmap (Sep. 2017) 28 ●The revised version of the Mid-and-Long-Term Roadmap is available here (TEPCO website). 1. Basic Approach toward Revision (1) Maintain approach that prioritizes safety and emphasizes risk reduction (2) Optimize overall

  36. Slide 36: Revised Mid-and-Long-Term Roadmap Milestones

    Revised Mid-and-Long-Term Roadmap Milestones 29 Maintain Overall Framework of Decommissioning Schedule Nov. 2013 Dec. 2011 (Fuel removal initiated at Unit 4) Dec. 2021 30 to 40 years later Stabilization initiatives Phase 1 Phase 2 Phase 3 Cold shutdown achieved Period until start of spent Period unt

  37. Slide 37: Contaminated Water Management

    Contaminated Water Management 30 − 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. − With respect to the land-side impermeable wall which is

  38. Slide 38: 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.

  39. Slide 39: Main Measures to Secure Safety - 1 [Outline]

    Main Measures to Secure Safety – 1 [Outline] 31  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

  40. Slide 40: Main Measures to Secure Safety - 2 [Implementation Status]

    Main Measures to Secure Safety - 2 [Implementation Status] 32 As of October 12, 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 (flo

  41. Slide 41: Compliance Review under the New Regulatory Requirements - 1

    Compliance Review under the New Regulatory Requirements – 1 33 Latest Review Status ・On September 27, 2013, an application was presented requesting verification of compliance with new regulatory requirements for Units 6 and 7. ・After the compliance verification application was presented, amended app

  42. Slide 42: Compliance Review under the New Regulatory Requirements - 2

    34 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

  43. Slide 43: Other Initiatives

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

  44. Slide 44: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 35 <Cost reduction> − In addition to the cost reductions that has been made under the New Comprehensive Special Business Plan (TEPCO *1 : ¥4.8 trillion/10 years), TEPCO will execute, under the Revised New Comprehensive Special Business Plan, unprecedented an

  45. Slide 45: Efforts towards Nuclear Reform - 1

    Efforts towards Nuclear Reform - 1 36 - Framework for Nuclear Reform − Since April 2013, TEPCO has advanced the Nuclear Safety Reform Plan so that it may realize its determination that “the Fukushima nuclear accident will never be forgotten and we will be a nuclear operator which continues to create

  46. Slide 46: Efforts towards Nuclear Reform - 2

    Efforts towards Nuclear Reform – 2 37 - 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

  47. Slide 47: Main Efforts to Increase Corporate Value - 1

    Main Efforts to Increase Corporate Value -1 38 <TEPCO Holdings> August 25, 2017: Decision rendered on setting up a new organization, the Earning Capacity Creation Unit, to improve earning capacity and increase corporate value September 7, 2017: IoT watch service, which uses taxis, was initiated toge

  48. Slide 48: Main Efforts to Increase Corporate Value - 2

    Main Efforts to Increase Corporate Value -2 39 <TEPCO Energy Partner> August 3, 2017: A new company, Tokyo Energy Alliance Co., Inc., established with Nippon Gas Co., Ltd. to provide a city gas business platform August 7, 2017: Service constructed with Sony Mobile Communications Inc. that utilizes I

  49. Slide 49: TEPCO - The Energy for Every Challenge

    T=PCO The Energy for Every Challenge

Tokyo Electric Power Company Holdings — Q2 FY2017 Earnings Presentation on 6ix