Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q1 FY2021 Earnings Presentation

44 slides from Tokyo Electric Power's earnings presentation, Jul 29, 2021

1. Slide 1: FY2021 1st Quarter Financial Results (April 1 – June 30, 2021)

   FY2021 1st Quarter Financial Results (April 1 – June 30, 2021) 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 FY2021 1st Quarter Financial Results

   Overview of FY2021 1st Quarter Financial Results (Released on July 29, 2021) (Note) Please note that the following is an accurate and complete translation of the original Japanese version prepared for the convenience of our English-speaking investors. In case of any discrepancy between the translati

4. Slide 4: Key Points of FY2021 1st Quarter Financial Results

   Key Points of FY2021 1st Quarter Financial Results 1 <FY2021 1st Quarter Financial Results>  Operating revenue decreased due to a decrease in the volume of electricity sold and fuel cost adjustments and the application for the new accounting standards.  Ordinary income/loss and quarterly net incom

5. Slide 5: 1. Consolidated Financial Results

   1. Consolidated Financial Results 2 (Unit: Billion kWh) FY2021 FY2020 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Total Electricity Sales Volume 52.4 51.2 1.2 102.3 Retail Electricity Sales Volume ※1 42.5 47.4 -4.9 89.7 Wholesale Electricity Sales Volume ※2 9.8 3.8 6.0 258.3 (Unit: Billio

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

   (Reference)Key Factors Affecting Performance 3 Area demand (Unit: Billion ｋWh) FY2021 FY2020 Comparison Apr-Jun(A) Apr-Jun(B) (A)-(B) (A)/(B) (%) Area demand 59.8 59.5 0.3 100.4 Foreign Exchange Rate/CIF FY2021 FY2020 (A)-(B) Apr-Jun(A) Apr-Jun(B) Foreign Exchange rate (Interbank,yen/dollar) 109.5 1

7. Slide 7: 2. Points of Each Companies

   2. Points of Each Companies 4 <TEPCO Holdings>  Ordinary income increased due to an increase in received dividends from core operating companies, etc. <TEPCO Fuel & Power>  Ordinary income increased due to a positive turn of the power supply and demand and an increase in profits of affiliated comp

8. Slide 8: 3. Overview of Each Company

   3. Overview of Each Company 5 (Unit: Billion Yen) FY2021 FY2020 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Operating Revenue 980.0 1,341.3 -361.2 73.1 TEPCO Holdings 117.2 129.2 -11.9 90.7 TEPCO Fuel & Power 1.3 1.9 -0.6 66.8 TEPCO Power Grid 409.3 410.7 -1.4 99.6 TEPCO Energy Partner 80

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

   4. Consolidated Extraordinary Income/Loss 6 (Unit: Billion Yen) FY2021 FY2020 Comparison Apr-Jun(A) Apr-Jun(B) (A)-(B) Extraordinary Income - - - Extraordinary Loss 20.6 36.5 -15.9 Expenses for Nuclear Damage Compensation ※ 20.6 36.5 -15.9 Extraordinary Income/Loss -20.6 -36.5 15.9 ※Increase in esti

10. Slide 10: 5. Factors for fluctuating consolidated revenue

    5. Factors for fluctuating consolidated revenue 7 ～The impact of application for new accounting standards～  Operating revenue decreased by 265.4 billion yen as a result of the application for new accounting standards (no impact on revenue and expenditures since expenses decreased) Operating revenue

11. Slide 11: 6. Consolidated Financial Position

    6. Consolidated Financial Position 8  Total assets balance decreased by 5.1 billion yen due mainly to a decrease in electric utility fixed assets.  Total liabilities balance decreased by 36.8 billion yen due mainly to a decrease in current liabilities, such as accrued expenses.  Total net assets

12. Slide 12: 7. FY2021 Consolidated Performance Forecast

    7. FY2021 Consolidated Performance Forecast 9 (Unit: Billion yen) FY2021 Projection FY2020 Results (A)-(B) (A) (B) Operating revenue 4,484.0 5,866.8 - 1,383.0 Operating income/loss 69.0 143.4 - 74.0 Ordinary income/loss 74.0 189.8 - 116.0 Extraordinary - 1.3 - 1.0 i n c o m e / l o s s Net Income At

13. Slide 13: (Reference) FY2021 Consolidated Performance Forecast (Key Factors)

    (Reference) FY2021 Consolidated Performance Forecast (Key Factors Affecting Performance) 10 (Unit: Billion yen) FY2021 Comparison FY2020 Results Projections (B) (A)-(B) (A)/(B)（％） (A) Total Electricity sales volume 213.0 231.5 - 18.5 92.0 Retail Electricity sales volume 186.9 204.7 - 17.8 91.3 Whole

14. Slide 14: (Reference) Consolidated Year-on-Year performance comparison ① Increases/Decreases chart

    (Reference) Consolidated Year-on-Year performance comparison ① ~Increases/Decreases chart~ 11 Power supply and demand, Ordinary income/loss and transmission revenue -61.9 Others +11.8 (Units: Billion Yen) Related to sales(After deduct renewable energy ) Related to Area demand Decrease in Profit: 50.

15. Slide 15: (Reference) Consolidated Year-on-Year performance comparison ② Figures

    (Reference) Consolidated Year-on-Year performance comparison ② ~Figures~ 12 （Units: Billion yen) FY2021 (A) FY2020 (B) (A)-(B) Ordinary Income 18.4 68.5 -50.0 Power supply and demand, and 393.2 455.1 -61.9 transmission revenue Retail electricity sales ※1 441.8 569.6 -127.8 Wholesale electricity sale

16. Slide 16: (Reference) Year-on-Year Comparisons for TEPCO Holdings

    (Reference) Year-on-Year Comparisons for TEPCO Holdings 13 Ordinary income/loss Profit Structure (Units: Billion Yen) Profit is dividend income, decommissioning charges Decrease in profit, management consultation fees, wholesale wholesale power sales of nuclear power, etc. power sales -24.0 Increase

17. Slide 17: (Reference) Year-on-Year Comparisons for TEPCO Fuel & Power

    (Reference) Year-on-Year Comparisons for TEPCO Fuel & Power 14 Ordinary income/loss Profit Structure (Units: Billion Yen) Main profit is profit of entities accounted for using equity method, such as generation business at JERA. Impact Timing Impact (JERA equity impact) (Units: Billion Yen) from Impr

18. Slide 18: (Reference) Year-on-Year Comparisons for TEPCO Power Grid

    (Reference) Year-on-Year Comparisons for TEPCO Power Grid 15 Ordinary income/loss Profit Structure (Units: Billion Yen) Operating revenue is mainly transmission revenue, and this is fluctuated by area demand. Decrease in Expenses is mainly for repairs and depreciation costs of transmission transmiss

19. Slide 19: (Reference) Year-on-Year Comparisons for TEPCO Energy Partner

    (Reference) Year-on-Year Comparisons for TEPCO Energy Partner 16 Ordinary income/loss Profit Structure (Units: Billion Yen) Operating revenue is mainly electricity sales revenue, and this is fluctuated by electricity sales volume. Year-on-Year Expenses are mainly power purchasing costs and transmiss

20. Slide 20: (Reference) Year-on-Year Comparisons for TEPCO Renewable Power

    (Reference) Year-on-Year Comparisons for TEPCO Renewable Power 17 Ordinary income/loss (Units: Billion Yen) Profit Structure Profit is mainly wholesale power sales of hydroelectric and Increase in new energies. Wholesales, etc Increase in Expenses is mainly for depreciation and repairs. property tax

21. Slide 21: (Reference) Application of new accounting standards

    (Reference)Application of new accounting standards 18  “Accounting standards for revenue recognition” went into effect in FY2021 and some transactions that were posted as revenue (sales) must now be listed in a different category (changes were also made to what can be posted as expenses so there wa

22. Slide 22: (Reference) FY2021 Consolidated Performance Forecast (Overview of Each Company)

    (Reference) FY2021 Consolidated Performance Forecast (Overview of Each Company ) 19 (Units: Billion Yen) FY2021 Projections FY2020 Results (A)-(B) (A) (B) Operating Revenu e 4,484.0 5,866.8 - 1,383.0 TEPCO Holdings 635.0 624.2 11.0 TEPCO Fuel & Power 5.0 8.7 - 4.0 TEPCO Power Grid 1,760.0 2,003.8 -

23. Slide 23: Supplemental Material

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

24. Slide 24: Table of Contents

    Table of Contents Financial Results Detailed Information Series of efforts including physical protection Consolidated Statements of Income 20 Efforts for incomplete safety measures work 26 The status of Grants–in-aid from Nuclear Damage Compensation and 21 Efforts for physical protection 27 Decommis

25. Slide 25: FY2021 1st Quarter Financial Results Detailed Information

    FY2021 1st Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

26. Slide 26: Consolidated Statements of Income

    20 Consolidated Statements of Income (Unit: Billion Yen) FY2021 FY2020 Comparison Apr-Jun(A) Apr-Jun(B) (A)-(B) (A)/(B) (%) Operating Revenue 980.0 1,341.3 -361.2 73.1 Operating Expenses 991.4 1,283.7 -292.3 77.2 Operating Income / Loss -11.3 57.5 -68.9 － Non-operating Revenue 43.4 23.3 20.1 186.4 I

27. Slide 27: Grants-in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation and Expenses

    The status of Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation and Expenses for Nuclear Damage Compensation 21 (Unit: Billion Yen) FY2021 Cumulative Item FY2010 to FY2020 Apr-Jun Amount ◇Grants–in-aid from Nuclear Damage Compensation and Decommissioning Fac

28. Slide 28: Consolidated Balance Sheets

    Consolidated Balance Sheets 22 (Unit: Billion Yen) <Interest-bearing debt outstanding> (Unit: Billion Yen) Jun. 30 Mar. 31 Comparison Jun. 30 Mar. 31 (A)-(B) 2021 (A) 2021 (B) (A)-(B) (A)/(B) (%) 2021 (A) 2021 (B) Bonds 2,955.4 2,705.4 250.0 Total Assets 12,087.9 12,093.1 -5.1 100.0 Long-term Debt 2

29. Slide 29: Key Factors Affecting Performance

    Key Factors Affecting Performance 23 ※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)

30. Slide 30: Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated

    Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated 24 Retail Electricity Sales Volume（EP consolidated） Unit: Billion kWh FY2021 Apr May Jun Apr-Jun Lighting 4.81 4.17 3.91 12.89 Power 9.95 9.34 10.31 29.60 Total 14.76 13.52 14.22 42.49 FY2020 [Ref.]Year-on-year Compariso

31. Slide 31: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 25 (Billion Yen) Amount at Maturity (As of Jun. 30, 2021) TEPCO Public Bond TEPCO Power Grid Public Bond 160.0 (FY) Note: There is no redemption amount for Apr. - Jun. of fiscal 2021. ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

32. Slide 32: Series of efforts including physical protection

    Series of efforts including physical protection ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

33. Slide 33: Efforts for incomplete safety measures work

    Efforts for incomplete safety measures work 26  Regarding “incomplete safety measures work” at Kashiwazaki-Kariwa Nuclear Power Station, a project team of Head Office and station members were established to lead the “general inspection”.  As far as we could confirm incomplete work, a total of 76 a

34. Slide 34: Efforts for physical protection

    Efforts for physical protection 27  Direct causes, root causes and signs of deterioration of safety culture and nuclear security culture elements (including third-party assessment) regarding “partial loss of physical protection functions” and “misuse of ID” as well as the action plan for improvemen

35. Slide 35: 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.

36. Slide 36: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 28  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

37. Slide 37: Key points of the revised Mid-and-Long-Term Roadmap

    Key points of the revised “the Mid-and-Long-Term Roadmap” 29 ●Please visit the company webpage for the revised Mid-and-Long-Term Roadmap.  Setting out a basic principle of “coexistence of reconstruction and decommissioning”, while there has been gradual progress of residents’ return and reconstruct

38. Slide 38: Fuel Debris Retrieval Schedule and Process

    Fuel Debris Retrieval Schedule and Process Based upon the Mid-to-Long Term Decommissioning Implementation Plan 2021 30  On March 25, 2021, the Mid-and-Long Term Decommissioning Action Plan 2021 was published, an updated version of the Mid-and- Long Term Decommissioning Action Plan 2020 given the re

39. Slide 39: Contaminated Water Management

    Contaminated Water Management 31 − 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. < Major Progress> Please visit our website for the latest

40. Slide 40: 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 32  The “Basic Policy on handling of ALPS treated water at the Tokyo Electric Power Company Holdings’ Fukushima Daiichi Nuclear Power Station” (hereinafter gover

41. Slide 41: Response Regarding Handling of ALPS Treated Water – 2

    TEPCO Holdings’ Response Regarding Handling of ALPS Treated Water 33 – 2 Design and Operation of Necessary Facilities/Schedule Secondary treatment Site use plan Necessary equipment for ocean Secondary treatment will be conducted as necessary Necessary measures to discharge ALPS treated water to ensu

42. Slide 42: Other Initiatives

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

43. Slide 43: Main Efforts to Increase Corporate Value-1

    Main Efforts to Increase Corporate Value-1 34 <TEPCO Holdings> May 11,2021 The “transmission line inspection drone automatic flying system”, jointly developed with Blue innovation Co., Ltd. and TEPCO SYSTEMS CORPORATION, is to be introduced in June 2021 for inspection work of transmission lines owne

44. Slide 44: Main Efforts to Increase Corporate Value-2

    Main Efforts to Increase Corporate Value-2 35 <TEPCO Power Grid> May 31,2021 In order to jointly respond to inquiries sent through chats, partnership with 10 general power transmission and distribution companies including Okinawa Electric Power Company, Incorporated is to begin for the “Kanazawa Maz

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