Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q3 FY2015 Earnings Presentation

52 slides from Tokyo Electric Power's earnings presentation, Jan 29, 2016

  1. Slide 1: FY2015 3rd Quarter Earnings Results

    FY2015 3rd Quarter Earnings Results (April 1 – December 31, 2015) Tokyo Electric Power Company January 29, 2016 © 2016 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: Overview of FY2015 3rd Quarter Earnings Results

    Overview of FY2015 3rd Quarter Earnings Results © 2016 Tokyo Electric Power Company, Inc. All Rights Reserved.

  4. Slide 4: Key Points of FY2015 Q3 Earnings Results and Full-Year Forecasts

    Key Points of FY2015 Q3 Earnings Results and Full-Year Forecasts 1 Ordinary income achieved profits in FY2015 Q3 for the third consecutive year. < FY2015 Q3 Earnings Results >  “Decrease in revenues and increase in profit” compared to the corresponding period of the previous fiscal year. Ordinary i

  5. Slide 5: Consolidated Earnings Results - Year on Year Comparison

    1. Consolidated Earnings Results - Year on Year Comparison 2 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Dec(A) Apr-Dec(B) (A)-(B) (A)/(B) (% ) Operating Revenues 4,497.1 4,932.5 -435.3 91.2 Operating Income 463.1 299.1 163.9 154.8 Ordinary Income 436.2 227.0 209.1 192.1 Extraordinary Income 50

  6. Slide 6: Non-Consolidated Earnings Results - Year on Year Comparison

    2．Non-Consolidated Earnings Results - Year on Year Comparison 3 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Dec(A) Apr-Dec(B) (A)-(B) (A)/(B) (% ) Operating Revenues 4,372.4 4,814.8 -442.3 90.8 Operating Income 439.1 274.9 164.2 159.7 Ordinary Income 400.4 182.7 217.6 219.1 Extraordinary Income

  7. Slide 7: Power Demand and Supply - Year on Year Comparison

    3. Power Demand and Supply - Year on Year Comparison 4 Electricity Sales Volume (Unit: Billion kWh) FY2015 FY2014 Comparison Apr-Dec(A) Apr-Dec(B) (A)-(B) (A)/(B) (%) Decrease in demand of liberalized segment Lighting 61.5 61.9 -0.4 99.3 due to a weakness in Power 7.0 7.1 -0.1 98.0 industrial produc

  8. Slide 8: Key Factors Affecting Performance - Year on Year Comparison

    4. Key Factors Affecting Performance - Year on Year Comparison 5 FY2015 FY2014 (A)-(B) Apr-Dec(A) Apr-Dec(B) Foreign Exchange Rate (Interbank, yen/dollar) 121.7 106.7 15.0 Crude Oil Prices (All Japan CIF, dollar/barrel) 54.6 102.5 -47.9 LNG Prices (All Japan CIF, dollar/barrel) 52.7 92.9 -40.2 <Fluc

  9. Slide 9: Income and Expenditure (Non-Consolidated): Revenues

    5. The Status of Income and Expenditure (Non-Consolidated) - Year on Year Comparison 6 (1) Revenues (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Dec(A) Apr-Dec(B) (A)-(B) (A)/(B) (%) (Operating Revenues) 4,372.4 4,814.8 -442.3 90.8 Electricity Sales Revenues 3,886.4 4,358.0 -471.6 89.2 ・Decrease

  10. Slide 10: Income and Expenditure (Non-Consolidated): Expenditures

    6. The Status of Income and Expenditure (Non-Consolidated) - Year on Year Comparison 7 (2) Expenditures (Unit: Billion Yen) ・Decrease in thermal power FY2015 FY2015 FY2014 FY2014 Comparison Comparison generation -134.0 ・Effect of fluctuations of Apr-Dec(A) Apr-Dec(A) Apr-Dec(B) Apr-Dec(B) (A)-(B) (A

  11. Slide 11: Increase/Decrease of Consolidated Business Performance

    7．Increase/Decrease of Consolidated Business Performance - Year on Year Comparison 8  Ordinary Income increased 209.1 billion yen to 436.2 billion yen. Ordinary Income Factors related to Power Supply and Demand Others (Unit: Billion Yen) (including renewable energy） +27.2 Decrease in foreign exchan

  12. Slide 12: Extraordinary Income/Loss (Consolidated)

    8. Extraordinary Income/Loss (Consolidated) - Year on Year Comparison 9 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Dec Apr-Dec Extraordinary Income 500.0 512.5 -12.5 Grants-in-aid from NDF* 426.7 512.5 -85.8 Gain on revision of retirement benefit plan 61.0 - 61.0 Gain on change in equity 12.2

  13. Slide 13: Consolidated Financial Position

    9．Consolidated Financial Position 10 - Total assets decreased 366.4 billion yen mainly due to decline in Grants-in-aid receivable from Nuclear Damage Compensation and Decommissioning Facilitation Corporation. - Total liabilities decreased 707.7 billion yen mainly due to decline in interest-bearing d

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  15. Slide 15: Supplemental Material

    Supplemental Material © 2016 Tokyo Electric Power Company, Inc. All Rights Reserved.

  16. Slide 16: Table of Contents

    Table of Contents Earnings Results Detailed Information Other Initiatives Consolidated Statements of Income 11 Implementation of the Streamlining Policy 26 Breakdown of Non-Consolidated Ordinary Revenues 12 Efforts towards Nuclear Reform Breakdown of Non-Consolidated Ordinary Expenses 13 Framework f

  17. Slide 17: FY2015 3rd Quarter Earnings Results Detailed Information

    FY2015 3rd Quarter Earnings Results Detailed Information © 2016 Tokyo Electric Power Company, Inc. All Rights Reserved.

  18. Slide 18: Consolidated Statements of Income

    Consolidated Statements of Income 11 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Operating Revenues 4,497.1 4,932.5 -435.3 91.2 Operating Expenses 4,034.0 4,633.3 -599.3 87.1 Operating Income 463.1 299.1 163.9 154.8 Non-operating Revenues 54.4 49.2 5.2 11

  19. Slide 19: Breakdown of Non-Consolidated Ordinary Revenues

    Breakdown of Non-Consolidated Ordinary Revenues 12 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-DeC (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Ordinary Revenues 4,414.2 4,842.8 -428.5 91.2 Operating Revenues 4,372.4 4,814.8 -442.3 90.8 Operating Revenues from Electric Power Business 4,296.5 4,722.3 -42

  20. Slide 20: Breakdown of Non-Consolidated Ordinary Expenses

    Breakdown of Non-Consolidated Ordinary Expenses 13 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 4,013.8 4,660.0 -646.1 86.1 Operating Expenses 3,933.2 4,539.8 -606.5 86.6 Operating Expenses for Electric Power Business 3,870.3 4,455.6 -585

  21. Slide 21: Year-on-Year Comparison of Non-Consolidated Ordinary Expenses - 1

    Year-on-Year Comparison of Non-Consolidated Ordinary Expenses - 1 14 Personnel expenses (¥274.4 billion to ¥266.8 billion) - ¥7.6 billion Salary and benefits (¥193.5 billion to ¥190.1 billion) - ¥3.4 billion Retirement benefits (¥29.9 billion to ¥25.9 billion) - ¥4.0 billion Amortization of actuaria

  22. Slide 22: Year-on-Year Comparison of Non-Consolidated Ordinary Expenses - 2

    Year-on-Year Comparison of Non-Consolidated Ordinary Expenses - 2 15 Maintenance expenses (¥204.2 billion to ¥235.2 billion) +¥31.0 billion Generation facilities (¥77.4 billion to ¥99.0 billion) +¥21.5 billion Hydroelectric power (¥6.1 billion to ¥6.3 billion) +¥0.1 billion Thermal power (¥50.3 bill

  23. Slide 23: Year-on-Year Comparison of Non-Consolidated Ordinary Expenses - 3

    Year-on-Year Comparison of Non-Consolidated Ordinary Expenses - 3 16 Power purchasing costs (¥737.9 billion to ¥731.4 billion) - ¥6.4 billion Power purchased from other utilities (¥150.5 billion to ¥145.4 billion) - ¥5.0 billion Power purchased from other suppliers (¥587.4 billion to ¥586.0 billion)

  24. Slide 24: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan Earthquake [Extraordinary Income/Loss, Non-Consolidated] 17 Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation [Extraordinary Income] (Unit: Billion Yen) FY 2010 to FY2015 Cumulative Item FY2014 FY2013 Apr-Dec Amount -

  25. Slide 25: Consolidated and Non-Consolidated Balance Sheets

    Consolidated and Non-Consolidated Balance Sheets 18 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion Yen) <Interest-bearing debt outstanding> Dec. 31 Mar. 31 Comparison (Unit: Billion Yen) 2015 (A) 2015 (B) (A)-(B) (A)/(B) (%) (A)Dec.31, (B)Mar.31 (C

  26. Slide 26: Segment Information

    Segment Information 19 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Dec (A) Apr-Dec (B) (A) - (B) (A)/(B) (%) Operating Revenues 4,497.1 4,932.5 -435.3 91.2 1,872.1 2,547.2 -675.0 73.5 Fuel & Power Company 44.7 81.1 -36.4 55.1 1,217.7 1,073.8 143.9 113.4 Power Grid Company 126.0 88.2 37.8 142.9

  27. Slide 27: [Reference] FY2015 Key Factors Affecting Performance and Financial Impact

    [Reference] FY2015 Key Factors Affecting Performance and Financial Impact 20 FY2015 Key Factors Affecting Performance Full-year Projection Apr-Dec (As of Jan.29) (As of Oct. 29) Electricity Sales Volume (billion kWh) 180.6 252.5 256.8 Crude Oil Prices (All Japan CIF; dollars per barrel) 54.6 - - For

  28. Slide 28: [Reference] Schedules for Corporate Bond Redemption (Non-consolidated)

    [Reference] Schedules for Corporate Bond Redemption (Non-consolidated) 21 (Billion Yen) *2 *1 Foreign currency-denominated bond (Breakdown) *2 Private bond (Breakdown) *1 *2 *2 *2 *2 *2 *2 (FY) Note: The amount redeemed for Apr-Dec of fiscal 2015 totaled 438.1 billion yen. © 2016 Tokyo Electric Powe

  29. Slide 29: [Reference] Seasonal Breakdown of Electricity Sales

    [Reference] Seasonal Breakdown of Electricity Sales - Sales Volume, Total Power Generated and Purchased 22 Full-year Outlook FY2014 FY2015 for FY2015 Electricity Sales Volume Latest Projection Oct. Nov. Dec. Oct-Dec Apr-Dec Full year Oct. Nov. Dec. Oct-Dec Apr-Dec Projection (As of Jul. 29) 6.82 7.1

  30. Slide 30: [Reference] Recent Demand Trend of Large-Scale Industries

    [Reference] Recent Demand Trend of Large-Scale Industries 23 - Electricity sales volume to large-scale industrial customers in the third quarter of fiscal 2015 decreased 6.0% due to decrease year-on-year sales growth in industries such as Paper & pulp, Chemicals, Ceramics & stone, Ferrous metals, No

  31. Slide 31: [Reference] Fuel Consumption and Procurement

    [Reference] Fuel Consumption and Procurement 24 Fuel Consumption Data and Projection 【Reference】 FY2015 FY2015 【Reference】 FY2012 FY2013 FY2014 FY2015 Full-year Full-year Apr-Dec FY2014 Actual Actual Actual Outlook Apr-Dec Actual Outlook (as of Oct 29) Actual LNG(million tons) 23.71 23.78 23.49 － －

  32. Slide 32: [Reference] Historical Prices of CIF Crude Oil, Fuel Coal and LNG

    [Reference] Historical Prices of CIF Crude Oil, Fuel Coal and LNG 25 (＄/b･t) (＄/t) Crude Oil Fuel Coal LNG (Right-hand Scale) Note: Preliminary figures are used for December, 2015. © 2016 Tokyo Electric Power Company, Inc. All Rights Reserved.

  33. Slide 33: FY2015 3rd Quarter Earnings Results Other Initiatives

    FY2015 3rd Quarter Earnings Results Other Initiatives © 2016 Tokyo Electric Power Company, Inc. All Rights Reserved.

  34. Slide 34: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 26 <Cost reduction> − In the New Comprehensive Special Business Plan, TEPCO and its subsidiaries & affiliated companies will implement further cost cuts of 1,419.4 billion yen and 108.5 billion yen, respectively from the previous Comprehensive Special Busine

  35. Slide 35: Efforts towards Nuclear Reform - Framework for Nuclear Reform

    Efforts towards Nuclear Reform - 1 [Reference] Framework for Nuclear Reform 27 − Since April 2013, TEPCO has advanced the Nuclear Safety Reform Plan so that we may realize our determination that “the Fukushima nuclear accident will never be forgotten and we will be a nuclear operator which continues

  36. Slide 36: Report on status of the Nuclear Safety Reform Plan

    Efforts towards Nuclear Reform - 2 Report on status of the Nuclear Safety Reform Plan 28 ＜Progress Situation＞ Principal activities in third quarter Future plans Reform from top ・Workshops were held on crisis management. Former ANA ・Knowledge acquired through third-party reviews and management Pilot

  37. Slide 37: Response to Full Liberalization of the Retail Market - 1

    Response to Full Liberalization of the Retail Market - 1 29 − In order to win out over the competition after full liberalization of the electricity market in April 2016 and increase TEPCO’s corporate value, a new menu of services was announced on January 7th. − With the aim of being a company that h

  38. Slide 38: Response to Full Liberalization of the Retail Market - 2

    Response to Full Liberalization of the Retail Market - 2 30 ＜List of Partner Companies (As of January 7, 2016)＞ Communications & Internet Lifestyle & Home Life Quality Services Home Appliances Music Streaming Gas & Energy © 2016 Tokyo Electric Power Company, Inc. All Rights Reserved.

  39. Slide 39: The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives

    The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives © 2016 Tokyo Electric Power Company, Inc. All Rights Reserved.

  40. Slide 40: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 31 - At Units 1, 2 and 3, it was evaluated that the comprehensive cold shutdown condition had been maintained, judging from the temperatures of the reactors and spent fuel pools as well as the density of radioactive materials. To facilitate the remov

  41. Slide 41: Overview of the Mid-to-long Term Roadmap towards Decommissioning - 1

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station - 1 32 - TEPCO released “Mid-to-long Term Roadmap towards the decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4” in December, 2011. Based on the continually-revi

  42. Slide 42: Overview of the Mid-to-long Term Roadmap towards Decommissioning - 2

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station - 2 33 <Main target process of the Decommissioning> Previous Future efforts Area efforts Phase 2 (until commencement of fuel debris removal) Phase 3 (until decommissioning completed) Curre

  43. Slide 43: Contaminated water management

    Contaminated water management 34 − 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. − In this quarter, the countermeasures for “Isolate water

  44. Slide 44: Our Commitment to Nuclear Damage Compensation

    Our Commitment to Nuclear Damage Compensation 35 - 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 which comprehens

  45. Slide 45: Compensation Support by Nuclear Damage Compensation and Decommissioning Facilitation Corporation

    Compensation Support by Nuclear Damage Compensation and Decommissioning 36 Facilitation Corporation - After the enactment of the Nuclear Damage Liability Facilitation Fund Act, the Fund was officially established in September 2011. - Due to the partial revision of the Nuclear Damage Liability Facili

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  47. Slide 47: The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives © 2016 Tokyo Electric Power Company, Inc. All Rights Reserved.

  48. Slide 48: Main Measures to Secure Safety - Outline

    Main Measures to Secure Safety – 1 [Outline] 37  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 III. Further enhancement of heat III. Further enhancement

  49. Slide 49: Main Measures to Secure Safety - Implementation Status

    Main Measures to Secure Safety - 2 [Implementation Status] 38 As of October 21, 2015 Item Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 I. Installation of flooding embankment [banks] Completed Completed II. Countermeasures against inundation into buildings (1) Installation of tide embankments (fl

  50. Slide 50: Compliance Review under the New Regulatory Requirements - 1

    Compliance Review under the New Regulatory Requirements - 1 39 - In November 2013, the Nuclear Regulation Authority (NRA) started plant and earthquake/tsunami countermeasures reviews as to the compliance under the New Regulatory Requirements for the Kashiwazaki-Kariwa Nuclear Power Station Units 6 a

  51. Slide 51: Compliance Review under the New Regulatory Requirements - 2

    Compliance Review under the New Regulatory Requirements – 2 40 - At Review Meeting on August 6, 2015, Kashiwazaki-Kariwa Nuclear Power Station Units 6 and 7 were selected as plants for intensive review. ＜Review Status regarding Plant Examination＞ Since the beginning, the reviews of five BWR plants

  52. Slide 52: TEPCO: The Energy for Every Challenge

    T=PCO The Energy for Every Challenge

Tokyo Electric Power Company Holdings — Q3 FY2015 Earnings Presentation on 6ix