Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q1 FY2008 Earnings Presentation

39 slides from Tokyo Electric Power's earnings presentation, Jul 28, 2008

1. Slide 1: The Revision of Electricity Tariffs and FY2008 1st Quarter Financial Results

   The Revision of Electricity Tariffs and FY2008 1st Quarter Financial Results (April 1, 2008 – June 30, 2008) Presentation Materials July 28, 2008 Tokyo Electric Power Company The Tokyo Electric Power Company, Inc. All Rights Reserved ©2008

2. Slide 2: Regarding Forward-Looking Statements (Performance Projections)

   Regarding Forward-Looking Statements (Performance Projections) 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 th

3. Slide 3: Revision of Electricity Tariffs

   . Revision of Electricity Tariffs The Tokyo Electric Power Company, Inc. All Rights Reserved ©2008

4. Slide 4: Overview of Electricity Tariffs Rate Revision

   Overview of Electricity Tariffs Rate Revision Fuel costs have increased substantially because of rising fuel prices and the shutdown of the Kashiwakazi- Kariwa Nuclear Power Station. However, TEPCO will maintain electricity rates from September 2008 at the level in effect to August 2008 through our

5. Slide 5: Improved Management Efficiency

   Improved Management Efficiency The current rate revision includes maximum cost savings of ¥270.0 billion through future efforts to further raise management efficiency to supplement past increases. Specific Initiatives Restrained Restrained Capital Capital Expenditures Expenditures Thorough Thorough

6. Slide 6: Fuel Cost Adjustment System – 1

   Fuel Cost Adjustment System – 1 Revision of the basis for calculating fuel cost adjustment As a result of the current rate revision, the basis for calculating fuel cost adjustment will change from September 1, 2008 as follows. Before revision After revision Item Content Unit (through Aug. (from Sept

7. Slide 7: Fuel Cost Adjustment System – 2

   Fuel Cost Adjustment System – 2 Baseline fuel price for fuel cost adjustment The baseline fuel price is revised based on the average actual fuel price for January-March 2008 and the supply plan for fiscal 2008, as follows. Previous revision (Apr. 2006) Current revision (Sept. 2008) Fuel price Coeffi

8. Slide 8: Fuel Cost Adjustment from October 2008

   Fuel Cost Adjustment from October 2008 Fuel cost adjustment from October 2008 There will be no fuel cost adjustment for October-December 2008. From January 2009, new calculation standards will apply to fuel cost adjustment. Custom statistic fuel price Jan.-Mar. 2008 Apr.-Jun. Jul.-Sept. Month fuel c

9. Slide 9: Overview of FY2008 1st Quarter Financial Results

   Overview of FY2008 1st Quarter Financial Results The Tokyo Electric Power Company, Inc. All Rights Reserved ©2008

10. Slide 10: FY2008 1st Quarter Results Summary (Consolidated and Non-consolidated)

    FY2008 1st Quarter Results Summary (Consolidated and Non-consolidated) (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) FY2008 FY2007 Comparison 1st quarter (A) 1st quarter (B) (A)-(B) (A)/(B)(%) Electricity sales volume (Billion kWh) 68.9 68.9

11. Slide 11: Impact of the Shutdown of Kashiwazaki-Kariwa Nuclear Power Station

    Impact of the Shutdown of Kashiwazaki-Kariwa Nuclear Power Station (Unit: Billion yen) FY2008 1st quarter FY2008 projection FY2008 projection actual performance 2Q of the year Total 143.0 347.0 748.0 Fuel expenses, etc. 140.0 340.0 740.0 Increase in fuel expenses and purchased power 145.0 350.0 760.

12. Slide 12: Performance Outlook for FY2008 -1

    Performance Outlook for FY2008 -1 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) FY2008 projection 2Q of the year Operating revenues Operating income Ordinary income or loss Quarterly net income or loss 2,845.0 -120.0 -170.0 -110.0 Present pro

13. Slide 13: Performance Outlook for FY2008 -2 <2nd quarter of the year>

    Performance Outlook for FY2008 -2 <2nd quarter of the year> <FY2008 projection for 2Q of the year: Factors behind variance in ordinary income or loss (Non-consolidated)> Quarterly ordinary income or loss [ of FY2007] +¥185.9 billion Factors for improving performance +¥185.0 billion Factors for weake

14. Slide 14: Performance Outlook for FY2008 -3 <Full year>

    Performance Outlook for FY2008 -3 <Full year> <FY2008 projection for full year: Factors behind variance in ordinary income or loss (Non-consolidated)> Ordinary income or loss [ of FY2007] -¥22.0 billion Factors for improving performance +¥635.0 billion Factors for weakening performance +¥1,095.0 bil

15. Slide 15: Key Factors Affecting Performance and Financial Impact

    Key Factors Affecting Performance and Financial Impact Key Factors Affecting Performance FY2008 projection FY2008 actual Ref.: FY2007 actual 2Q of the year Full year 1st quarter 1st quarter ull year Electricity sales volume (billion kWh) 146.8 296.2 68.9 68.9 297.4 Crude oil prices (All Japan CIF; d

16. Slide 16: Dividend Forecasts

    Dividend Forecasts Dividend Policy “TEPCO is fundamentally committed to maintaining a stable dividend and intends to achieve a consolidated payout ratio of 30% or higher. Therefore, the Company endeavors to meet shareholder’ expectations by distributing earnings while comprehensively considering fac

17. Slide 17: FY2008 1st Quarter Financial Results (Detailed Information)

    FY2008 1st Quarter Financial Results (Detailed Information) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2008

18. Slide 18: Statement of Income (Consolidated)

    Statement of Income (Consolidated) (Unit: Billion yen) FY2008 FY2007 Comparison 1st quarter (A) 1st quarter (B) (A)-(B) (A)/(B) (%) Operating revenues 1,319.4 1,251.0 68.3 105.5 Operating expenses 1,415.0 1,186.4 228.6 119.3 Operating income or loss -95.6 64.6 -160.2 Non-operating revenues 21.2 18.2

19. Slide 19: Revenues Breakdown (Non-consolidated)

    Revenues Breakdown (Non-consolidated) (Unit: Billion yen) FY2008 FY2007 Comparison Increase in unit sales price +¥66.0 billion 1st quarter 1st quarter (A)-(B) (A)/(B) (%) (16.26yen/kWh 17.21yen/kWh) Ordinary revenues 1,273.4 1,197.9 75.4 106.3 <Fuel Cost Adjustment Amounts> FY2007/1Q: 23 billion yen

20. Slide 20: Expenses Breakdown (Non-consolidated)

    Expenses Breakdown (Non-consolidated) (Unit: Billion yen) FY2008 FY2007 Comparison 1st quarter (A) 1st quarter (B) (A)-(B) (A)/(B) (%) Ordinary expenses 1,407.4 1,169.5 237.9 120.3 Operating expenses 1,368.2 1,133.4 234.7 120.7 Electric power operating expenses 1,350.6 1,123.6 226.9 120.2 Personnel

21. Slide 21: Period-on-Period Comparison of Ordinary Expenses – 1 (Non-consolidated)

    Period-on-Period Comparison of Ordinary Expenses – 1 (Non-consolidated) Personnel expenses (¥105.8 billion to ¥119.8 billion) +¥13.9 billion Retirement benefits +¥14.5 billion Increase in amortization of actuarial difference (-¥11.1billion to ¥7.2 billion) Gain on transfer to defined contribution pe

22. Slide 22: Period-on-Period Comparison of Ordinary Expenses – 2 (Non-consolidated)

    Period-on-Period Comparison of Ordinary Expenses – 2 (Non-consolidated) Maintenance expenses (¥113.5 billion to ¥98.4 billion) -¥15.1 billion Generation related (¥51.4 billion to ¥47.2 billion) Factors for Increase/Decrease -¥4.1 billion Hyddro power Decrease in maintenance expeneses of waterwheel,

23. Slide 23: Period-on-Period Comparison of Ordinary Expenses – 3 (Non-consolidated)

    Period-on-Period Comparison of Ordinary Expenses – 3 (Non-consolidated) Purchased power (¥155.0 billion to ¥191.6 billion) +¥36.5 billion Inter-company power purchases (¥49.4 billion to ¥50.2 billion) Factors for Increase/Decrease +¥0.8 billion Purchases of power from other companies Purchases of po

24. Slide 24: Balance Sheets (Consolidated and Non-consolidated)

    Balance Sheets (Consolidated and Non-consolidated) (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Jun. 30, Mar. 31, Comparison 2008 (A) 2008 (B) (A)-(B) (A)/(B) (%) Bond issues in FY2008 13,647.1 13,679.0 -31.8 99.8 Issue amount Period Coupon

25. Slide 25: Free Cash Flow and its Application (Consolidated and Non-consolidated)

    Free Cash Flow and its Application (Consolidated and Non-consolidated) (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) FY2008 FY2007 Comparison 1st quarter (A) 1st quarter (B) (A)-(B) (A)/(B) (%) Net cash provided by operating -8.3 activities -

26. Slide 26: Segment Information

    Segment Information (Unit: Billion yen) Major subsidiaries in each segment (Unit: Billion yen) Operating revenues Operating income FY2008 FY2007 Comparison Increase Increase 1st quarter (A) 1st quarter (B) (A)-(B) (A)/(B) (%) or or Information and Telecommunications Operating revenues 1,319.4 TEPCO

27. Slide 27: Total Power Generated and Purchased and Electricity Sales Volume

    Total Power Generated and Purchased and Electricity Sales Volume Average Monthly Temperature (Unit: ) April May June Total Power Generated and Purchased (Units: Billion kWh, %) FY2008 14.1 18.0 20.9 April May June 1st quarter FY2008 24.32 24.47 24.93 73.72 Compared with 1.0 -1.1 -1.7 Total power gen

28. Slide 28: Reference: Countermeasures of Supply Capacity

    Reference: Countermeasures of Supply Capacity ‹Outlook for Supply & Demand during Summer 2008 Projected peak demand during summer 2008 (maximum gross at Generation End per day) is approx. 61.10 million kW normal summer temperature Projected temperature sensitivity during summer 2008 is approximately

29. Slide 29: Reference: Countermeasures against Global Warming

    Reference: Countermeasures against Global Warming Countermeasures against Global Warming Supply-side Initiatives International cooperation initiatives Initiatives with customers Safety and stably operate nuclear power stations Use Kyoto Mechanisms Promote the use of high-efficiency appliances Improv

30. Slide 30: The Present Status of the Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    Reference The Present Status of the Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives - Progress & Key Changes since the Financial Result Announcement on April 30, 2008 - The Tokyo Electric Power Company, Inc. All Rights Reserved ©2008

31. Slide 31: Construct Safe, Secure, Disaster-Resistant Nuclear Power Stations

    Construct Safe, Secure, Disaster-Resistant Nuclear Power Stations Restoration Initiatives at the Kashiwazaki-Kariwa Nuclear Power Station Earthquake-Resistance and Safety Improvement Initiatives Earthquake- Geological survey and Facility inspection response analysis assessment Reflects knowledge gai

32. Slide 32: Investigation and Analysis Schedule -1

    Facility Soundness Evaluation Investigation and Analysis Schedule -1 Schedules for inspection and evaluation plan of facility soundness Unadministered inspection of Unit 7 2007 2008 11 12 1 2 3 4 5 6 7 8 9 o r la te r I n s p e c tio n , E v a lu a tio n F a c ili tie s E a rth q u a k e -re s p o n

33. Slide 33: Confirmation of System-Level Soundness

    Facility Soundness Evaluation Confirmation of System-Level Soundness We have confirmed the soundness of most individual pieces of equipment (equipment level) for Unit 7, and have enhanced the plan for inspection and evaluation at the system level (system function testing and system soundness evaluat

34. Slide 34: Investigation and Analysis Initiatives to Date

    Facility Soundness Evaluation Investigation and Analysis Initiatives to Date Facility Inspections TEPCO is inspecting key facilities in succession based on the inspection and evaluation plan. So far, we have found no damage that would affect the functions of any safety-critical facility. Reactor Ins

35. Slide 35: Determination of Ground Movement Standards (Ss)

    Earthquake-Resistance and Safety Improvement Initiatives Determination of Ground Movement Standards (Ss) Some of the results of geological surveys and evaluation of active faults have been revised in accordance with the deliberations of the Earthquake, Tsunami, Geology and Soil Joint Working Group,

36. Slide 36: Reinforcement Work

    Earthquake-Resistance and Safety Improvement Initiatives Reinforcement Work Work has been done to enable the reactor buildings for units 1 through 7 to endure 1,000 gal of seismic motion on the base mats in order to increase the earthquake resistance and safety of each facility. Current schedule of

37. Slide 37: Factors that Contributed to Intensification of Seismic Motions

    Reference Factors that Contributed to Intensification of Seismic Motions Effects of the hypocenter and subsurface structure amplified the seismic motions The newly discovered mechanism (factor 1 to 3) was reflected in determining the ground movement standard Unit 5 reactor building Unit 1 reactor bu

38. Slide 38: Reinforcement Works Case

    Reference Reinforcement Works Case Strengthening Earthquake Resistance of Supports for Piping and Related Equipment including Conduits, Cable Trays and Air Ducts) Additional Supports for Piping Reinforcing Existing Supports Wall Piping Piping Support Additional Support Wall Reinforced support Additi

39. Slide 39: Governmental Inspection and Investigation System

    Reference Governmental Inspection and Investigation System METI Cabinet Office and Nuclear and Industrial Nuclear and Industrial Nuclear Safety Safety Agency (NISA) Double check Commission Safety Division Monitoring and auditing of Report administrative agencies’ regulations Subcommittee on Nuclear

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