Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q2 FY2013 Earnings Presentation

44 slides from Tokyo Electric Power's earnings presentation, Oct 31, 2013

1. Slide 1: FY2013 2nd Quarter Earnings Results

   FY2013 2nd Quarter Earnings Results (April 1 – September 30, 2013) Presentation Material Mamoru Muramatsu Managing Executive Officer October 31, 2013 © 2013 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: I. Overview of FY2013 2nd Quarter Earnings Results

   I. Overview of FY2013 2nd Quarter Earnings Results © 2013 Tokyo Electric Power Company, Inc. All Rights Reserved.

4. Slide 4: Key Points of FY2013 2nd Quarter Earnings Results

   Key Points of FY2013 2nd Quarter Earnings Results 1 Overview - Both consolidated and non-consolidated operating revenues increased due to an increase in the unit electricity sales price resulting from electricity rate revision implemented in 2012 and the fuel cost adjustments, etc. - Ordinary income

5. Slide 5: Earnings Results Summary (Consolidated and Non-Consolidated)

   FY2013 2nd Quarter Earnings Results Summary (Consolidated and Non-Consolidated) 2 (Upper and lower rows show consolidated and non-consolidated figures, respectively.) (Unit: Billion Yen) FY2013 (A) FY2012 (B) Comparison 1st Half 1st Half (A)-(B) (A)/(B)(%) Electricity Sales Volume (billion kWh) 131.

6. Slide 6: Electricity Sales Volume, Total Power Generated and Purchased

   FY2013 2nd Quarter Electricity Sales Volume, Total Power Generated and Purchased 3 (Units: Billion kWh, %) Full-year Outlook FY2013 Electricity Sales Volume for FY2013 1st 2nd Latest Previous Quarter 1st Half Quarter Projection Projection 21.83 27.02 48.84 105.49 103.49 Regulated segment [First Half

7. Slide 7: Comparison with the Previous Fiscal Year Results

   FY2013 2nd Quarter Comparison with the Previous Fiscal Year Results 4 (Unit: Billion Yen) FY2013 1st Half Actual (A) FY2012 1st Half Actual (B) Comparison (A)-(B) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Operating Revenues 3,216.1 3,126.5 2,875.9 2,77

8. Slide 8: Financial Impact of the Tohoku-Chihou-Taiheiyo-Oki Earthquake

   Financial Impact of the Tohoku-Chihou-Taiheiyo-Oki Earthquake [Extraordinary Income/Loss] 5 Grants–in-aid from Nuclear Damage Liability Facilitation Fund [Extraordinary Income] (Unit: billion yen) FY2013 Cumulative Item FY 2010 to FY2011 FY2012 Amount 1st Quarter 1st Half * - Grants-in-aid based on

9. Slide 9: FY2013 Business Performance Outlook [Full Year]

   FY2013 Business Performance Outlook [Full Year] - Key Factors Affecting Performance and Financial Impact 6 FY2013 Key Factors Affecting Performance 1st Half Actual Full-year Projection (As of Oct.31) (As of Jul. 31) Electricity Sales Volume (billion kWh) 131.7 268.5 265.9 Crude Oil Prices (All Japan

10. Slide 10: [Reference] Fuel Consumption and Procurement

    [Reference] Fuel Consumption and Procurement 7 Fuel Consumption Data and Projection FY2013 Full-year Outlook [Reference] FY2010 FY2011 FY2012 FY2013_1st Half FY2012_1st Half Actual Actual Actual New Previous Actual Actual LNG(million tons) 19.46 22.88 23.71 - - 11.72 11.45 Oil (million ｋｌ) 4.75 8.08

11. Slide 11: Cost Reduction

    Implementation of the Streamlining Policy 8 <Cost reduction> The targets set in the Comprehensive Special Business Plan for TEPCO and its subsidiaries & affiliated companies are 271.9 billion yen and 28.0 billion yen, respectively. The targets are going to be achieved in this fiscal year. In additio

12. Slide 12: Efforts towards Nuclear Reform - 1

    Efforts towards Nuclear Reform - 1 Report on status of the Nuclear Safety Reform Plan 9 - The “Reassessment of Fukushima Nuclear Accident and Nuclear Safety Reform Plan” (the “Reform Plan”) formulated by TEPCO’s Nuclear Reform Special Task Force was announced through the resolution of the Board of D

13. Slide 13: Efforts towards Nuclear Reform - 2

    Efforts towards Nuclear Reform - 2 [Reference] Framework for Nuclear Reform 10 - On September 11, 2012, TEPCO established the Nuclear Reform Monitoring Committee as advisory body to the Board of Directors, along with the Nuclear Reform Special Task Force to be led by the President for the purpose of

14. Slide 14: II. FY2013 2nd Quarter Earnings Results (Detailed Information)

    II. FY2013 2nd Quarter Earnings Results (Detailed Information) © 2013 Tokyo Electric Power Company, Inc. All Rights Reserved.

15. Slide 15: Statements of Income (Consolidated)

    Statements of Income (Consolidated) 11 (Unit: Billion yen) FY2013 (A) FY2012 (B) Comparison 1st Half 1st Half (A)-(B) (A)/(B) (%) Operating Revenues 3,216.1 2,875.9 340.2 111.8 Operating Expenses 3,048.9 2,980.4 68.4 102.3 - Grants–in-aid from Nuclear Damage Liability Facilitation Fund 666.2 billion

16. Slide 16: Breakdown of Revenues, etc. (Non-Consolidated)

    Breakdown of Revenues, etc. (Non-Consolidated) 12 (Unit: Billion yen) FY2013 (A) FY2012 (B) Comparison 1st Half 1st Half (A)-(B) (A)/(B) (%) Ordinary Revenues 3,152.4 2,799.6 352.8 112.6 Operating Revenues 3,126.5 2,772.3 354.1 112.8 Operating Revenues from Electric Power Business 3,067.6 2,721.3 34

17. Slide 17: Breakdown of Expenses, etc. (Non-Consolidated)

    Breakdown of Expenses, etc. (Non-Consolidated) 13 (Unit: Billion yen) FY2013 (A) FY2012 (B) Comparison 1st Half 1st Half (A)-(B) (A)/(B) (%) Ordinary Expenses 3,040.3 2,988.9 51.4 101.7 Operating Expenses 2,978.1 2,901.2 76.8 102.6 Operating Expenses for Electric Power Business 2,923.0 2,854.2 68.8

18. Slide 18: Year-on-Year Comparison of Ordinary Expenses, etc. - 1

    Year-on-Year Comparison of Ordinary Expenses, etc. (Non-Consolidated) - 1 14 Personnel expenses (¥184.3 billion to ¥166.0 billion) -¥18.3 billion Salary and benefits (¥127.0 billion to ¥122.5 billion) -¥4.5 billion Retirement benefits (¥18.6 billion to ¥8.0 billion) -¥10.5 billion Amortization of ac

19. Slide 19: Year-on-Year Comparison of Ordinary Expenses, etc. - 2

    Year-on-Year Comparison of Ordinary Expenses, etc. (Non-Consolidated) - 2 15 Maintenance expenses (¥158.4 billion to ¥121.6 billion) -¥36.7 billion Generation facilities (¥53.1 billion to ¥40.3 billion) -¥12.7 billion Hydroelectric power (¥3.4 billion to ¥3.5 billion) +¥0.0 billion Thermal power (¥3

20. Slide 20: Year-on-Year Comparison of Ordinary Expenses - 3

    Year-on-Year Comparison of Ordinary Expenses (Non-Consolidated) - 3 16 Power purchasing costs (¥421.9 billion to ¥470.4 billion) +¥48.5 billion Power purchased from other utilities (¥76.3 billion to ¥107.8 billion) Main Factors for Increase/Decrease +¥31.4 billion Power purchased from other supplier

21. Slide 21: Balance Sheets (Consolidated and Non-Consolidated)

    Balance Sheets (Consolidated and Non-Consolidated) 17 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Sep. 30, Mar. 31, Comparison 2013 (A) 2013 (B) (A)-(B) (A)/(B) (%) (Consolidated) 14,565.2 14,989.1 -423.8 97.2 Total Assets (Non-consolidated

22. Slide 22: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 18 (Unit: Billion yen) FY2013 (A) FY2012 (B) Comparison 1st Half 1st Half (A)-(B) Cash flow from operating activities 116.2 -24.7 140.9 Income / loss before income taxes and minority interests (Net loss) 629.4 -287.3 916.7 Depreciation and amortization 322.1 313

23. Slide 23: Segment Information

    Segment Information 19 (Unit: Billion yen) <Major Categories of Incidental Business> (Unit: Billion yen) FY2013(A) FY2013 1st Half 1st Half Ordinary Revenues Ordinary Income YOY YOY Operating Revenues 3,216.1 Increase Increase 1,570.3 Gas Supply Business 52.4 9.0 1.1 0.1 Fuel & Power Company 14.1 Le

24. Slide 24: [Reference] Schedules for Corporate Bond Redemption

    [Reference] Schedules for Corporate Bond Redemption (Non-consolidated) 20 (Billion yen) Amount at Maturity (As of September 30, 2013) 1,400 Foreign currency-denominated bond 1298.3 Domestic (Private offering bond) Domestic (Public offering bond) 1,200 *1 Foreign currency-denominated bond (Breakdown)

25. Slide 25: [Reference] Seasonal Breakdown of Electricity Sales

    [Reference] Seasonal Breakdown of Electricity Sales - Sales Volume, Total Power 21 Generated and Purchased (Units: Billion kWh, %) FY2012 FY2013 Electricity Sales Volume 1st Half 2nd Half Full year Apr. May Jun. Jul. Aug. Sep. 1st Half 49.66 56.50 106.17 7.96 7.50 6.37 7.77 9.93 9.32 48.84 Regulated

26. Slide 26: [Reference] Recent Demand Trend of Large-Scale Industries

    [Reference] Recent Demand Trend of Large-Scale Industries 22 - Electricity sales volume to large-scale industrial customers in 2nd Quarter of FY2013 decreased 0.2% due to decreased year-on- year sales growth in industries such as machinery, non-ferrous metals and ceramics & stone. [Year-on-year Elec

27. Slide 27: [Reference] Historical Prices of CIF Crude Oil, Fuel Coal and LNG

    [Reference] Historical Prices of CIF Crude Oil, Fuel Coal and LNG 23 (＄/b･t) (＄/t) 160 1,000 900 140 800 120 700 100 600 80 500 60 Crude Oil 400 Fuel Coal 300 40 LNG (Right-hand Scale) 200 20 100 0 0 Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul 2009 2010 2011 2012 2013 Not

28. Slide 28: [Reference] Review on the accounting system concerning decommissioning of nuclear power stations

    [Reference] Review on the accounting system concerning the decommissioning of nuclear power stations 24 - The Ministerial Ordinance for Partial Revision of the Accounting Rule for the Electricity Business was enforced on October 1, 2013. The revised Ordinance was stipulated from a perspective that m

29. Slide 29: [Reference] The Current Status of Fukushima Daiichi Nuclear Power Station and Future Initiatives

    [Reference] The Current Status of Fukushima Daiichi Nuclear Power Station and Future Initiatives © 2013 Tokyo Electric Power Company, Inc. All Rights Reserved.

30. Slide 30: Current Situation and Status of Fukushima Daiichi Nuclear Power Station

    Current Situation and Status of Fukushima Daiichi Nuclear Power Station 25 - At Units 1, 2 and 3, we continue circulatory water-cooling operations for their reactors by processing and reusing the accumulated water, and the temperatures of the reactors have been kept around 30 to 40 degrees centigrad

31. Slide 31: Mid-to-long Term Roadmap towards Decommissioning of Fukushima Daiichi (1)

    Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4 (1) 26 - On December 21, 2011, TEPCO released "Mid-to-long Term Roadmap" for Fukushima Daiichi Nuclear Power Station, following an accomplishment of STEP 2 shown on the "Roadmap towards

32. Slide 32: Mid-to-long Term Roadmap towards Decommissioning of Fukushima Daiichi (2)

    Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4 (2) 27 2. Main Points of the Roadmap (1) Review schedules based on the condition of each unit ・Prepare multiple plans for the removal of the fuel and fuel debris in order to make it poss

33. Slide 33: Mid-to-long Term Roadmap towards Decommissioning of Fukushima Daiichi (3)

    Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4 (3) 28 3. Major Judgment Points on the Roadmap ・ In this review, the acceleration of the schedule was examined based on the analysis of difference of each unit. We have formulated multip

34. Slide 34: Countermeasures against the contaminated water issues at Fukushima Daiichi

    Countermeasures against the contaminated water issues at Fukushima Daiichi Nuclear Power Station 29 - Facing with flow of contaminated water into the port and contaminated water leakage from the tanks at Fukushima Daiichi Nuclear Power Station, TEPCO has established the “Contaminated Water and Tank

35. Slide 35: Our Commitment to Nuclear Damage Compensation

    Our Commitment to Nuclear Damage Compensation 30 - 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 released in Augu

36. Slide 36: Decontamination Works in the Surrounding Areas

    Decontamination Works in the Surrounding Areas 31 - Act on Special Measures for Coping with Radioactive Pollution was approved in August of 2011 and fully came into force on January 1, 2012. The government budgets several hundred billion yen every year for funding decontamination works. - Based on t

37. Slide 37: Compensation Support by Nuclear Damage Liability Facilitation Fund

    Compensation Support by Nuclear Damage Liability Facilitation Fund 32 - After the enactment of the Nuclear Damage Liability Facilitation Fund Act, the Fund was officially established in September, 2011. - To receive a financial assistance of the Fund, the nuclear operator is required to prepare/modi

38. Slide 38: Nuclear Damage Liability Facilitation Fund Act

    Nuclear Damage Liability Facilitation Fund Act 33 - The Act was enacted in August 2011. [Key Points of the Act] < Responsibility of the State; Article 2 > - In view of the social responsibility that comes along with its having promoted a nuclear energy policy, the State shall take all necessary meas

39. Slide 39: The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    [Reference] The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives © 2013 Tokyo Electric Power Company, Inc. All Rights Reserved.

40. Slide 40: Earthquake-Resistance and Safety

    Efforts after the Niigataken Chuetsu-Oki Earthquake in 2007 Overview of Status of Initiatives 34 Item Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Submission of inspection and Submitted Submitted Submitted Submitted Submitted Submitted Submitted evaluation plan Buildings (Jul. 18, 2008) (Sep. 18

41. Slide 41: Main Measures to Secure Safety - 1 [Outline]

    Efforts after the Tohoku-Chihou-Taiheiyo-Oki Earthquake Main Measures to Secure Safety - 1 [Outline] 35  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 II

42. Slide 42: Main Measures to Secure Safety - 2 [Implementation Status]

    Efforts after the Tohoku-Chihou-Taiheiyo-Oki Earthquake Main Measures to Secure Safety - 2 [Implementation Status] 36 As of October 23, 2013 Item Schedule Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 I. Installation of flooding embankment [banks] Completed in Jun. 2013 Completed Completed II. Co

43. Slide 43: Application to receive the compliance examination under the New Regulatory Requirements

    Efforts after the Tohoku-Chihou-Taiheiyo-Oki Earthquake Application to receive the compliance examination under the New Regulatory Requirements 37 - On September 27, 2013, TEPCO submitted to the Nuclear Regulation Authority (NRA) the application for permission for changes in reactor installation, ap

44. Slide 44: Evaluation Results of the Geological Survey of Faults in the Kashiwazaki-Kariwa NPS site

    Efforts after the Tohoku-Chihou-Taiheiyo-Oki Earthquake TEPCO’s Evaluation Results of the Geological Survey of Faults in the Kashiwazaki-Kariwa NPS site 38 - At the public hearing regarding earthquakes and tsunamis held by the Nuclear and Industrial Safety Agency of the Ministry of Economy, Trade an

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