Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — H1 FY2010 Earnings Presentation

44 slides from Tokyo Electric Power's earnings presentation, Oct 29, 2010

  1. Slide 1: FY2010 2nd Quarter Earnings Results

    TEPCO FY2010 2nd Quarter Earnings Results (April 1, 2010 – September 30, 2010) Presentation Material Masaru TAKEI Executive Vice President & Representative Director October 29, 2010 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010

  2. Slide 2: Disclaimer

    TEPCO Disclaimer Regarding Forward-Looking Statements (Performance Projections) Certain statements in the following presentation regarding The Tokyo Electric Power Company’s business operations may constitute “forward-looking statements.” As such, these statements are not historical facts but rather

  3. Slide 3: Overview of FY2010 2nd Quarter Earnings Results

    TEPCO Ⅰ．Overview of FY2010 2nd Quarter Earnings Results The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010

  4. Slide 4: Key points of FY2010 2nd Quarter Earnings Results and Full-year Performance Outlook

    Key points of 1 TEPCO FY2010 2nd Quarter Earnings Results and Full-year Performance Outlook Overview of 2nd nd Quarter Earnings  Both consolidated and non-consolidated operating revenues increased year on year. While electricity sales volume during the period increased 8.9% due to this record-break

  5. Slide 5: FY2010 2nd Quarter Earnings Results Summary (Consolidated and Non-consolidated)

    FY2010 2nd Quarter Earnings Results Summary (Consolidated and Non-consolidated) 2 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion Yen) FY2010 (A) FY2009 (B) Comparison 1st Half 1st Half (A)-(B) (A)/(B)(%) Electricity Sales Volume (billion kWh)

  6. Slide 6: FY2010 2nd Quarter Business Performance - Electricity Sales Volume, Total Power Generated and Purchased

    FY2010 2nd Quarter Business Performance - 1 - Electricity Sales Volume, Total Power Generated and Purchased 3 TEPCO Electricity Electricity Sales Sales Volume Volume (Units: Billion kWh, %) FY2010 FY2010 Previous [First Half FY 2010 Results] 1st Quarter 2nd Quarter 1st Half Projection Projection ○ T

  7. Slide 7: Comparison with results in the same period of the previous fiscal year

    FY2010 2nd Quarter Business Performance – 2 - Comparison with results in the same period of the previous fiscal year 4 TEPCO (Unit: Billion Yen) FY2010 1st Half Actual (A) FY2009 1st Half Actual (B) Comparison (A)-(B) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-conso

  8. Slide 8: Comparison with the previous projection

    FY2010 2nd Quarter Business Performance – 3 - Comparison with the previous projection 5 TEPCO (Unit: Billion Yen) FY2010 1st Half Projection FY2010 1st Half Actual (A) (B) Comparison (A)-(B) (As of July 30, 2010) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidat

  9. Slide 9: Revision of FY2010 Outlook - Key Factors Affecting Performance and Financial Impact

    Revision of FY2010 Business Performance Outlook [Full Year] - 1 - Key Factors Affecting Performance and Financial Impact 6 TEPCO FY2010 1st Half Full Year Projection Key Factors Affecting Performance Actual Projection New Previous Performance (as of Jul. 30) (as of Oct. 29) (as of Jul. 30) Electrici

  10. Slide 10: Revision of FY2010 Outlook - Comparison with the previous projection

    Revision of FY2010 Business Performance Outlook [Full Year] - 2 - Comparison with the previous projection 7 TEPCO (Unit: Billion Yen) FY2010 Projection FY2010 Projection (A) (B) Comparison (A)-(B) (As of October. 29, 2010) (As of July 30, 2010) Consolidated Non-consolidated Consolidated Non-consolid

  11. Slide 11: Revision of FY2010 Outlook - Comparison with previous fiscal year results

    Revision of FY2010 Business Performance Outlook [Full Year] - 3 8 TEPCO - Comparison with the results of the previous fiscal year (Unit: Billion Yen) FY2010 Projection FY2009 Actual (B) Comparison (A)-(B) (As of October. 29, 2010) (A) Consolidated Non-consolidated Consolidated Non-consolidated Conso

  12. Slide 12: Financial impact of a unit restart at Kashiwazaki-Kariwa Nuclear Power Station

    【Reference】 Financial impact of a unit restart at Kashiwazaki-Kariwa Nuclear Power Station 9 TEPCO  For FY2010 performance projections as of October 29, we incorporate operation plans of Units 1, 6 and 7 out of 7 units at Kashiwazaki-Kariwa Nuclear Power Station as we did in the previous projection

  13. Slide 13: Fuel Consumption and Procurement

    【Reference】 10 TEPCO Fuel Consumption and Procurement Fuel Fuel Consumption Consumption Results Results and and Projections Projections FY2010 FY2010 FY2007 FY2008 FY2009 FY2009 FY2010 New Projection Previous Projection Actual Actual Actual (as of Oct. 29) (as of Jul. 30) 1st Half 1st Half LNG (mill

  14. Slide 14: Dividend Policy – returning earnings to our shareholders

    Dividend Policy – returning earnings to our shareholders 11 TEPCO TEPCO’s TEPCO’sdividend dividendpolicy policy  Based on its constant nominal payment policy, TEPCO aims to achieve consolidated dividend payout ratio of 30%.  We are committed to sharing earnings with careful consideration of the co

  15. Slide 15: FY2010 2nd Quarter Earnings Results (Detailed Information)

    TEPCO Ⅱ. FY2010 2nd Quarter Earnings Results (Detailed Information) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010

  16. Slide 16: Statements of Income (Consolidated)

    Statements of Income (Consolidated) 12 TEPCO (Unit: Billion yen) FY2010 (A) FY2009 (B) Comparison 1st Half 1st Half (A)-(B) (A)/(B) (%) Operating Revenues 2,710.7 2,497.8 212.8 108.5 Operating Expenses 2,474.9 2,257.2 217.7 109.6 See Page 21 for details of business Operating Income 235.8 240.6 -4.8

  17. Slide 17: Revenues Breakdown (Non-consolidated)

    Revenues Breakdown (Non-consolidated) 13 TEPCO (Unit: Billion yen) FY2010 (A) FY2009 (B) Comparison 1st Half 1st Half (A)-(B) (A)/(B) (%) Ordinary Revenues 2,644.2 2,416.1 228.0 109.4 Operating Revenues 2,606.4 2,397.8 208.5 108.7 Operating Revenues from electric power business 2,569.1 2,365.3 203.8

  18. Slide 18: Expenses Breakdown (Non-consolidated)

    Expenses Breakdown (Non-consolidated) 14 TEPCO (Unit: Billion yen) FY2010 (A) FY2009 (B) Comparison 1st Half 1st Half (A)-(B) (A)/(B) (%) Ordinary Expenses 2,464.8 2,242.1 222.7 109.9 Operating Expenses 2,389.7 2,173.1 216.5 110.0 Operating Expenses for electric power business 2,353.9 2,145.9 207.9

  19. Slide 19: Year-on-Year Comparison of Ordinary Expenses – 1 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 1 (Non-consolidated) 15 TEPCO Personnel expenses (¥245.4 billion to ¥224.0 billion) -¥21.3 billion Salary and benefits (¥79.8 billion to ¥80.5 billion) +¥0.7 billion Retirement benefits (¥47.1 billion to ¥22.6 billion) -¥24.4 billion Decrease in amortiz

  20. Slide 20: Year-on-Year Comparison of Ordinary Expenses – 2 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 2 (Non-consolidated) 16 TEPCO Maintenance expenses (¥182.2 billion to ¥190.0 billion) +¥7.7 billion Generation facilities (¥84.9 billion to ¥82.1 billion) -¥2.8 billion Hydroelectric power (¥3.8 billion to ¥5.0 billion) +¥1.1 billion Thermal power (¥37.

  21. Slide 21: Year-on-Year Comparison of Ordinary Expenses – 3 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 3 (Non-consolidated) 17 TEPCO Power purchasing cost (¥351.4 billion to ¥351.5 billion) +¥0.1 billion Power purchased from other utilities (¥99.6 billion to ¥91.0 billion) -¥8.6 billion Power purchased from other suppliers (¥251.7 billion to ¥260.4 billi

  22. Slide 22: Year-on-Year Comparison of Ordinary Expenses – 4 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 4 (Non-consolidated) 18 TEPCO Interest paid (¥65.7 billion to ¥63.4 billion) -¥2.3 billion Lower average interest rate (1.74% in FY2009/1H to 1.70% in FY2010/1H) -¥2.2 billion Other non-operating expenses (¥3.1 billion to ¥11.5 billion) +¥8.4 billion Pa

  23. Slide 23: Balance Sheets (Consolidated and Non-consolidated)

    Balance Sheets (Consolidated and Non-consolidated) 19 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Sep. 30, Mar. 31, Comparison Bond issued in FY2010 1st Half 2010 (A) 2010 (B) (A)-(B) (A)/(B) (%) Issue amount Maturity Coupon rate (Con

  24. Slide 24: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 20 TEPCO (Unit: Billion yen) FY2010 (A) FY2009 (B) Comparison 1st Half 1st Half (A)-(B) Cash flow from operating activities 479.4 524.3 -44.8 Income / loss before income taxes and minority interests 142.4 222.4 -80.0 Depreciation and amortization 359.7 379.6 -19

  25. Slide 25: Segment Information

    Segment Information 21 TEPCO (Unit: Billion yen) Major subsidiaries in each segment (Unit: Billion yen) FY2010 (A) FY2009 (B) Comparison Operating Revenues Operating Income 1st Half 1st Half (A)-(B) (A)/(B) (%) Difference Difference Information and Telecommunications Operating Revenues 2,710.7 2,497

  26. Slide 26: Gas Supply Business

    【Reference】 Gas Supply Business 22 TEPCO Operating Operating Performance Performance (Billion yen) Revenues Operating Income 76.1 65.0 69.0 58.0 <FY2010/1H Actual Performance> Operating revenues: Increased ¥4 billion to ¥30.6 billion because of an increase in sales volume and a rise in unit sales pr

  27. Slide 27: Monthly / Quarterly Breakdown of Electricity Sales Volume, Total Power Generated and Purchased

    【Reference】 Monthly / Quarterly Breakdown of Electricity 23 TEPCO - Sales Volume, Total Power Generated and Purchased (Units: Billion kWh, %) FY2009 FY2010 Electricity Electricity Sales Sales Volume Volume 1st Half 2nd Half Full Year Apr. May Jun. Jul. Aug. Sep. 1st Half 50.63 56.86 107.48 9.97 8.54

  28. Slide 28: Recent Demand Trend of Large-scale Industries

    【Reference】 24 TEPCO Recent Demand Trend of Large-scale Industries  Reflecting a continued upturn trend in industrial production level especially in machinery and ferrous metal industries, quarterly electricity sales volume to large-scale industrial customers increased 9.5 percent year on year. 【Ye

  29. Slide 29: Performance of TEPCO's Marketing & Sales Activities

    【Reference】 Performance of TEPCO’s Marketing & Sales Activities 25 TEPCO  TEPCO’s cumulative sales expansion target of 10 billion kWh between Fiscal 2004 and 2010 had been achieved in last fiscal year, a year ahead of the original plan on Management Vision 2010. The cumulative sales volume reached

  30. Slide 30: Performance of TEPCO's Marketing & Sales Activities

    【Reference】 Performance of TEPCO’s Marketing & Sales Activities 26 TEPCO  Cumulative number of all-electric homes in TEPCO’s service area reached 800 thousand in the end of August. Numbers of all- electric homes continue growing both in newly-built and remodeling markets steadily.  Since last fisc

  31. Slide 31: Historical Prices of CIF Crude Oil, Fuel Coal and LNG

    【Reference】 Historical Prices of CIF Crude Oil, Fuel Coal and LNG 27 TEPCO ($/b・t) ($/t) 160 Crude Oil 900 Fuel Coal 140 800 LNG (Right-hand Scale) 700 120 600 100 500 80 400 60 300 40 200 20 100 Note: The numbers above are calculated by TEPCO based on CIF stats and temporary exchange rates. 0 0 08/

  32. Slide 32: TEPCO The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010

    TEPCO The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010

  33. Slide 33: Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    TEPCO 【Reference】 The current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives (As of October 29, 2010 unless otherwise noted) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010

  34. Slide 34: Earthquake-Resistance and Safety

    TEPCO Overview of Status of Initiatives 28 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 （Initial submission date） (Jul. 18, 2008) (Sep. 18, 2008) (Jul. 18, 2008) (Sep

  35. Slide 35: Evaluation Procedure of soundness and safety at Unit 5

    TEPCO Evaluation Procedure of soundness and safety at Unit 5 29 Evaluation of Earthquake-Resistant Evaluation of Facility Soundness against the Niigataken Chuetsu-Oki Earthquake Capability and Safety Evaluation of Building and Structure Evaluation of Equipment and Evaluation of Earthquake Resistance

  36. Slide 36: Evaluation Procedure of soundness and safety at Unit 3

    TEPCO Evaluation Procedure of soundness and safety at Unit 3 30 Evaluation of Earthquake-Resistant Evaluation of Facility Soundness against the Niigataken Chuetsu-Oki Earthquake Capability and Safety Evaluation of Building and Structure Evaluation of Equipment and Evaluation of Earthquake Resistance

  37. Slide 37: Basic Equipment Inspections

    TEPCO Status of Progress at Each Unit in Facility Soundness Evaluation 31 ◆ Status of Progress in Basic Inspections (Equipment-Level Inspection and Evaluation) －Confirm the impact of an earthquake through testing, inspection and other means according to the particular features of each facility. As o

  38. Slide 38: Reinforcement Work

    【Earthquake-Resistance and Safety Improvement Initiatives】 TEPCO Reinforcement Work 32 ◆ TEPCO is conducting works as needed to reinforce earthquake-resistant capabilities of key facilities. ◆ Current schedule of works planned and in progress Note: Excludes preparatory work Year 2009 Year 2010 Apr.

  39. Slide 39: Progress to Date at Unit 1 and Unit 5 (Procedure for restarting operations)

    【Reference】 33 TEPCO Progress to Date at Unit 1 and Unit 5 (Procedure for restarting operations) ◆ Status of Unit 1 ・Apr. 8: Received evaluation report saying restart of Unit 1 would pose no safety problems from Nuclear and Industrial Safety Agency (NISA). ・Apr. 15: Received evaluation report saying

  40. Slide 40: Testing Process of Overall Plant Functions at Unit 1

    【Reference】 TEPCO Testing Process of Overall Plant Functions at Unit 1 34 May 21, 2010 Condenser Jun. 5 Main turbine started Jun. 14 Output reaches 100% and vacuum elevated Jun. 15 Constant operation at rated thermal output began May 31 Control rod extraction begins Jun. 5 Generators begin operation

  41. Slide 41: Governmental Inspection and Investigation System

    【Reference】 TEPCO Governmental Inspection and Investigation System 35 METI Cabinet Office and Nuclear and Industrial Nuclear and Industrial Nuclear Safety Safety Agency (NISA) Double check Commission Safety Division Report Subcommittee on Nuclear Facility Investigative Taskforce Nuclear Disaster Pre

  42. Slide 42: Niigata Prefecture's Original Assessment System

    【Reference】 TEPCO Niigata Prefecture’s Original Assessment System 36 The Technical Committee Niigata Prefectural ・Gives technical directions/advices to Pref. Directions Government Niigata Residents ・Interprets incidents and its impacts on the plants Advices ・Concludes technical and concrete counter-

  43. Slide 43: Issuance of New Shares and Secondary Offering of Shares

    TEPCO 【Reference】 Issuance of New Shares and Secondary Offering of Shares The Tokyo Electric Power Company, Inc. All Rights Reserved ©2010

  44. Slide 44: Issuance of New Shares and Secondary Offering of Shares

    Issuance of New Shares and Secondary Offering of Shares 37 TEPCO TEPCO announced public offering for the first time in 29 years since 1981. The total number of shares issued in a series of the offering is 254.15 million. The net proceeds from the offering are approximately 450 billion yen (TEPCO’

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