Tokyo Electric Power Company Holdings, Incorporated · TSE:9501
Tokyo Electric Power — Investor Presentation (March 2006)
22 slides from Tokyo Electric Power's investor presentation, Mar 28, 2006
Slide 1: FY2006 Business Management Plan Presentation Materials
FY2006 Business Management Plan Presentation Materials March 28, 2006 Tsunehisa Katsumata President Tokyo Electric Power Company The Tokyo Electric Power Company, Inc. All Rights Reserved ©2006
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
Slide 3: Table of Contents
Table of Contents 2 1 FY2006 Business Management Plan: Key Points 3 2-1 Management Targets 4 2-2 Management Targets: Main Revisions 5 3-1 Electricity Sales Volume Expansion Targets 6 3-2 Specific Measures for Expanding Demand 7 4-1 Promotion of Cost Reductions 8 4-2 Specific Measures for Promoting C
Slide 4: FY2006 Business Management Plan: Key Points
1. FY2006 Business Management Plan: Key Points 3 9 The FY2005 Business Management Plan was drafted in March 2005 as an action plan for items to be addressed over the coming three years under the TEPCO Group’s new medium-term management policy Positioning Management Vision 2010 (announced in Oct. 200
Slide 5: Management Targets
2-1. Management Targets 4 FY2005 Business FY2006 Business Management Vision Targets Management Plan Management Plan 2010 (FY2010 Targets) (FY2005 – 07) (FY2006 – 08) Electricity Sales Volume About 4 billion kWh About 5 billion kWh At least 10 billion kWh Increase Sales Expansion over 3 years over 3
Slide 6: Management Targets: Main Revisions
2-2. Management Targets: Main Revisions 5 FY2005 Business FY2006 Business Revision Background Targets Management Plan Management Plan (FY2005 – 07) (FY2006 – 08) (A) Consolidated (B) Non-consolidated Promotion of Group (A) At least \ 380 billion Ordinary Income (B) At least \ 350 billion Management
Slide 7: Electricity Sales Volume Expansion Targets
3-1. Electricity Sales Volume Expansion Targets 6 Increase the share of all-electric housing in new housing construction to about 22% (FY08) 1 out of 4 newly constructed Breakdown of the Electricity Sales Volume Increase 22.0 houses Previous plan: 19% (FY07) (Target of about 5 Billion kWh over 3 Yea
Slide 8: Specific Measures for Expanding Demand
3-2. Specific Measures for Expanding Demand 7 Corporate Corporateand andLarge-scale Large-scale Household Customer Sector HouseholdSector Sector Customer Sector Supply a range of PR development Switch! campaign ECO Support energy types TV and radio commercials Hands-on all-electric home fair ESCO (e
Slide 9: Promotion of Cost Reductions
4-1. Promotion of Cost Reductions 8 Capital Expenditures (Billion yen) 7.48 7.83 Number of Employees 7.45 7.12 7.09 1,436.5 Productivity (Electricity Sales Volume per Employee) (Million KWh) 1,399.2 6.78 6.76 43,448 43,166 6.55 1,279.8 6.33 42,672 About \ 620 billion 42,170 1,131.6 (ave. FY06-08) 41
Slide 10: Specific Measures for Promoting Cost Reductions
4-2. Specific Measures for Promoting Cost Reductions 9 Cost CostReductions Reductions Curb capital expenditures Promote rationalization of facility configuration through strict selection and streamlining of capital expenditure plans, and rationalization of planning, construction and specifications.
Slide 11: Balance Sheet Improvement
5. Balance Sheet Improvement 10 Interest-bearing Debt (Trillion yen) At least 23% (end of FY08) Shareholders’ Equity Ratio (%) 25.0 10.53 10.50 10.48 23.0 10.20 10.18 Previous plan: At least 22% (end of FY07) 9.86 9.42 (Previous plan) Management Vision 2010 8.97 8.58 About At least 25% (end of FY10)
Slide 12: Approach to New Businesses
6-1. Approach to New Businesses 11 About \ 270 billion in operating revenues and \ 40 billion in operating Left: Operating Revenues (Billion yen) About 350 income from businesses other than electric power (FY08) Right: Operating Income (Billion yen) Overseas Previous plan: About \ 500 billion and \
Slide 13: Gas-related Businesses
6-2. Gas-related Businesses 12 Gas Business Operating Revenues (Billion yen) Participating in the Darwin LNG Project, involving the 42 LNG development of the Bayu-Undan gas fields in Australia and Kanto Natural Gas Development Co. Upstream Timor-Leste and the liquefaction and sale of gas from these
Slide 14: Overseas Business
6-3. Overseas Business 13 TEPCO Investment* Company or Project Name Location Output Start of commercial operation, etc. (Investment ratio) Eurus Energy Holdings US, UK, Italy, etc. ¥14.7 billion ( 60.0% ) 1,110MW Capital participation Sept. 2002 Tarong North Power Station Project Australia ¥6.2 bill
Slide 15: Ordinary Income Targets
7. Ordinary Income Targets 14 At least \ 350 billion (FY06-08 ave.) ROA (Non-consolidated, %) Previous plan: 5.4 5.1 5.1 384.5 At least \ 350 billion (FY05-07 ave.) 4.8 5.0 4.5 About 350 4.5 345.9 320.0 319.5 304.4 4.0 280.8 About 4% Ordinary Income (Non-consolidated, Billion yen) 3.5 3.7 arget incr
Slide 16: Free Cash Flow (FCF) Targets
8. Free Cash Flow (FCF) Targets 15 891.5 134.3 Others (Investments and Loans) 649.4 80.9 Dividend Payments 604.5 Began making deposits to external fund 543.5 manager to cover expenses related to 506.2 113.4 410.4 87.2 reprocessing of irradiated nuclear fuel 80.9 77.7 (Billion yen) 94.0 81.0 80.9 46.
Slide 17: Summary
9. Summary 16 Efficiency Efficiencygains gainsthrough throughcompany-wide company-widestreamlining streamlining Efficiency gains distributed based on the profit-sharing concept Free Cash Flow Target: At least ¥400 billion (3-year average, FY06-08) Provision of good- quality, low-priced Reduction of
Slide 18: (Reference) Demand Outlook
(Reference) Demand Outlook 17 (Billion kWh, Million kW, %) FY2004 FY2005 FY2006 FY2015 Annual increase Comparison with previous plan Demand Outlook (actual) (estimate) (projected) (projected) rate (FY2004-15) as of FY2014 6.5 (2.5) 2.3 (1.4) -0.8 (2.1) Current plan Previous plan Residential 92.6 94.
Slide 19: (Reference) Major Facilities Plans
(Reference) Major Facilities Plans 18 Start of commercial operation Facility Plans Location/Name Output/Scale Start of commercial operation (previous plan) Fukushima Daiichi Units 7 and 8 1.38 million kW ea. October 2012, October 2013 October 2011, October 2012 Nuclear Fiscal 2014 Fiscal 2013 Higash
Slide 20: (Reference) Capital Investment Plan
(Reference) Capital Investment Plan 19 (Billion yen) FY2004 FY2005 FY2005 FY2006 FY2007 Capital Investment Plan (actual) (planned) (estimate) (planned) (planned) Hydroelectric 19.5 33.7 26.1 13.4 10.0 Thermal 74.1 61.9 55.1 79.4 72.4 Nuclear 38.3 69.2 39.2 76.4 86.3 Power sources subtotal 132.0 164.
Slide 21: (Reference) Management Vision 2010
(Reference) Management Vision 2010 20 Group Management Principle Contribute to better lifestyles and environments by providing superior energy services Group Management Guidelines The TEPCO Group has three Group Management Guidelines for becoming the top energy service provider. Management Managemen
Slide 22: (Reference) Numerical Targets 2010
(Reference) Numerical Targets 2010 (*Revised March 2006) 21 * Prior targets under Challenge 20 Plus 1 Numerical Numerical Targets Targets 2010 2010 “Challenge 20 Plus 1” [target year of FY2005] [target year of FY2010] Improve Improve efficiency efficiency by by at at least least 20% 20% Operating Im
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