Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q3 FY2017 Earnings Presentation

47 slides from Tokyo Electric Power's earnings presentation, Jan 30, 2018

  1. Slide 1: FY2017 3rd Quarter Financial Results

    FY2017 3rd Quarter Financial Results (April 1 – December 31, 2017) Tokyo Electric Power Company Holdings, Inc. ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  2. Slide 2: Regarding Forward-Looking Statements

    Regarding Forward-Looking Statements Certain statements in the following presentation regarding TEPCO Group’s business operations may constitute “forward-looking statements.” As such, these statements are not historical facts but rather predictions about the future, which inherently involve risks an

  3. Slide 3: Overview of FY2017 3rd Quarter Financial Results

    Overview of FY2017 3rd Quarter Financial Results (Released on January 30, 2018) ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  4. Slide 4: Key Points of FY2017 3rd Quarter Financial Results

    Key Points of FY2017 3rd Quarter Financial Results 1 < FY2017 3rd Quarter Financial Results >  Ordinary revenue increased due to an increase in electricity sales revenue caused by a rise in fuel cost adjustments, etc. even though electricity sales volume decreased.  Ordinary expenses increased due

  5. Slide 5: Consolidated Financial Results

    1. Consolidated Financial Results 2 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (% ) Operating Revenue 4,206.4 3,877.6 328.7 108.5 Operating Income 295.6 336.9 -41.2 87.8 Ordinary Income 274.2 306.1 -31.8 89.6 Extraordinary Income 128.6 330.6 -202.0 - Extraor

  6. Slide 6: Electricity Sales Volume/ Key Factors Affecting Performance

    2. Electricity Sales Volume/ Key Factors Affecting Performance 3 Electricity Sales Volume (Unit: Billion kWh) FY2017 FY2016 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Lighting 56.6 59.9 -3.2 94.6 Power 113.5 117.2 -3.8 96.8 Total 170.1 177.1 -7.0 96.0 * Electricity Sales Volume by TEPCO

  7. Slide 7: Ordinary Revenue (Consolidated)

    3. Ordinary Revenue (Consolidated) 4 (Unit: Billion Yen) FY2017 FY2016 Comparison ・Decrease in Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) electricity sales volume: - 141.0 (Operating Revenue) 4,206.4 3,877.6 328.7 108.5 ・Rise in fuel cost adjustments:+205.0 Electricity Sales Revenue 3,320.7 3,235.3

  8. Slide 8: Ordinary Expenses (Consolidated)

    4. Ordinary Expenses (Consolidated) 5 (Unit: Billion Yen) FY2017 FY2016 Comparison ・Effect of price fluctuations Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) of exchange rate, fuel Personnel Expenses 245.7 252.0 -6.3 97.5 prices (CIF), etc.: + 175.0 Fuel Expenses 932.9 788.2 144.6 118.4 ・Decrease in

  9. Slide 9: Extraordinary Income/ Loss (Consolidated)

    5. Extraordinary Income/ Loss (Consolidated) 6 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Dec Apr-Dec Extraordinary Income 128.6 330.6 -202.0 Grants-in-aid from NDF* 128.6 294.2 -165.6 Gain on change in equity - 36.4 -36.4 Extraordinary Loss 139.3 301.2 -161.8 Expenses for Nuclear Damage Compe

  10. Slide 10: Consolidated Financial Position

    6. Consolidated Financial Position 7  Total assets decreased 153.0 billion yen primarily due to a decrease in grants-in-aid receivables from NDF.  Total liabilities decreased 364.1 billion yen primarily due to a decrease in provision for nuclear damage compensation.  Total net assets increased 21

  11. Slide 11: FY2017 Full-Year Financial Forecasts

    7. FY2017 Full-Year Financial Forecasts 8 (Unit: Billion Yen) FY2017 Projections FY2017 Projections (released on Jan. 30, (released on Oct. 31, FY2016 Results 2018) 2017) Operating Revenue 5,750 5,750 5,357.7 Ordinary Income 200 200 227.6 Extraordinary Income/ Loss 98 98 -80.6 Net Income attributabl

  12. Slide 12: FY2017 Full-Year Financial Forecasts (Key Factors/ Financial Impact)

    8. FY2017 Full-Year Financial Forecasts 9 (Key Factors Affecting Performance/ Financial Impact) Key Factors Affecting Performance FY2017 Projections FY2017 Projections (released on Jan. 30, (released on Oct. 31, FY2016 Results 2018) 2017) Electricity Sales Volume (billion kWh) 233.8 233.2 241.5 Crud

  13. Slide 13: Supplemental Material

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

  14. Slide 14: Table of Contents

    Table of Contents Financial Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 10 Current Situation and Status of Units 1 through 4 25 Breakdown of Consolidated Ordinary Revenue 11 Key Points from the 4th Revision of the

  15. Slide 15: FY2017 3rd Quarter Financial Results Detailed Information

    FY2017 3rd Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  16. Slide 16: Consolidated Statements of Income

    10 Consolidated Statements of Income (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Operating Revenue 4,206.4 3,877.6 328.7 108.5 Operating Expenses 3,910.7 3,540.7 370.0 110.5 Operating Income 295.6 336.9 -41.2 87.8 Non-operating Revenue 34.8 47.6 -12.7 73.

  17. Slide 17: Breakdown of Consolidated Ordinary Revenue

    Breakdown of Consolidated Ordinary Revenue 11 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Ordinary Revenue 4,241.2 3,925.2 315.9 108.0 Operating Revenue 4,206.4 3,877.6 328.7 108.5 Operating Revenue from Electric Power Business 3,967.9 3,706.2 261.6 107.1

  18. Slide 18: Breakdown of Consolidated Ordinary Expenses

    Breakdown of Consolidated Ordinary Expenses 12 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 3,966.9 3,619.1 347.8 109.6 Operating Expenses 3,910.7 3,540.7 370.0 110.5 Operating Expenses for Electric Power Business 3,694.6 3,394.8 299.8 10

  19. Slide 19: Year-on-Year Comparison of Consolidated Ordinary Expenses - 1

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 1 13 Personnel expenses (¥252.0 billion to ¥245.7 billion) - ¥6.3 billion Salary and benefits (¥190.9 billion to ¥181.2 billion) - ¥9.7 billion Retirement benefits (¥13.2 billion to ¥19.8 billion) +¥6.6 billion Amortization of actuarial dif

  20. Slide 20: Year-on-Year Comparison of Consolidated Ordinary Expenses - 2

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 2 14 Maintenance expenses (¥228.0 billion to ¥208.7 billion) - ¥19.2 billion Generation facilities (¥75.8 billion to ¥79.2 billion) +¥3.4 billion Hydroelectric power (¥4.8 billion to ¥5.4 billion) +¥0.6 billion Thermal power (¥44.8 billion

  21. Slide 21: Year-on-Year Comparison of Consolidated Ordinary Expenses - 3

    15 Year-on-Year Comparison of Consolidated Ordinary Expenses - 3 Taxes and other public charges (¥227.1 billion to ¥229.8 billion) +¥2.7 billion Property tax (¥84.1 billion to ¥84.6 billion) +¥0.4 billion Tax for promotion of power-resources development (¥74.7 billion to ¥75.5 billion) +¥0.8 billion

  22. Slide 22: Increase/ Decrease of Consolidated Business Performance

    Increase/ Decrease of - Year on Year Comparison 16 Consolidated Business Performance Ordinary income decreased 31.8 billion yen to 274.2 billion yen. Ordinary Income Factors related to Power Supply and Demand Others (Unit: Billion Yen) (including renewable energy) + 86.3 - 118.2 Foreign Foreign Exc

  23. Slide 23: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan Earthquake 17 (Unit: Billion Yen) FY2017 Cumulative Item FY2010 to FY2016 Apr-Dec Amount ◇Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation ○Grants-in-aid based on Nuclear Damage Compensation and Decommissioning *1 *2

  24. Slide 24: Consolidated Balance Sheets

    Consolidated Balance Sheets 18 <Interest-bearing debt outstanding> (Unit: Billion Yen) (Unit: Billion Yen) Dec. 31 Mar. 31 Comparison Dec. 31 Mar. 31 2017 (A) 2017 (B) (A)-(B) (A)/(B) (%) (A)-(B) 2017 (A) 2017 (B) Total Assets 12,124.5 12,277.6 -153.0 98.8 Bonds 2,320.4 3,205.9 -885.4 Fixed Assets 9

  25. Slide 25: Segment Information

    Segment Information 19 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) Operating Revenue 4,206.4 3,877.6 328.7 108.5 612.2 688.6 -76.3 88.9 Holdings 37.9 39.8 -1.9 95.1 1,296.7 1,187.7 109.0 109.2 Fuel & Power 13.7 21.9 -8.1 62.8 1,246.6 1,222.5 24.1 102.0 Power

  26. Slide 26: [Reference] Key Factors Affecting Performance and Financial Impact

    [Reference] Key Factors Affecting Performance and Financial Impact 20 Key Factors Affecting Performance Financial Impact (Sensitivity) （Unit: Billion Yen） FY2017 【Reference】 FY2017 【Reference】 Apr-Dec Full-year Projections FY2016 Actual Performance Full-year Projections FY2016 Full-year Results Actu

  27. Slide 27: [Reference] Seasonal Breakdown of Electricity Sales Volume and Total Power Generated

    [Reference] Seasonal Breakdown of Electricity Sales Volume and 21 Total Power Generated Electricity Sales Volume Unit: Billion kWh FY2017 Apr-Sep Oct Nov Dec Oct-Dec Apr-Dec Lighting 37.60 5.39 6.34 7.32 19.05 56.65 Power 77.45 12.19 11.70 12.13 36.02 113.46 Total 115.05 17.57 18.04 19.45 55.07 170.

  28. Slide 28: [Reference] Fuel Consumption

    [Reference] Fuel Consumption 22 Fuel Consumption Data 【Reference】 FY2014 FY2015 FY2016 FY2017 FY2016 Actual Actual Actual Apr-Dec Apr-Dec LNG(million tons) 23.49 21.55 21.06 14.89 14.97 Oil (million kｌ) 3.10 2.48 2.05 0.43 1.58 Coal (million tons) 7.53 8.34 8.14 6.45 6.24 Note: The oil data is total

  29. Slide 29: [Reference] Feed-in Tariff Scheme for Renewable Energy

    [Reference] Feed-in Tariff Scheme for Renewable Energy 23 (Purchase Cost Collection Flow) （FY 2017 Apr.- Dec.) Avoidable Cost 77.7 billion yen (Green Investment Promotion Organization) Cost Bearing Adjustment Organization Generators Renewable Energy Subsidy Purchase Cost 254.7 billion yen 332.4 bill

  30. Slide 30: [Reference] Schedules for Public Bond Redemption

    [Reference] Schedules for Public Bond Redemption 24 (Billion Yen) Amount at Maturity (As of Dec. 31, 2017) TEPCO Public Bond TEPCO Power Grid Public Bond (FY) Note: The amount redeemed for Apr.- Dec. of fiscal 2017 totaled 483.3 billion yen. ©Tokyo Electric Power Company Holdings, Inc. All Rights Re

  31. Slide 31: The Current Status of Fukushima Daiichi Nuclear Power Station and Future Initiatives

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

  32. Slide 32: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 25 - 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

  33. Slide 33: Key Points from the 4th Revision of the Mid-and-Long-Term Roadmap

    Key Points from the 4th Revision of the Mid-and-Long-Term Roadmap (Sep. 2017) 26 ●The revised version of the Mid-and-Long-Term Roadmap is available here (TEPCO website). 1. Basic Approach toward Revision (1) Maintain approach that prioritizes safety and emphasizes risk reduction (2) Optimize overall

  34. Slide 34: Revised Mid-and-Long-Term Roadmap Milestones

    Revised Mid-and-Long-Term Roadmap Milestones 27 Maintain Overall Framework of Decommissioning Schedule Nov. 2013 Dec. 2011 (Fuel removal initiated at Unit 4) Dec. 2021 30 to 40 years later Stabilization initiatives Phase 1 Phase 2 Phase 3 Cold shutdown achieved Period until start of spent Period unt

  35. Slide 35: Contaminated Water Management

    Contaminated Water Management 28 − 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. − With respect to the land-side impermeable wall which is

  36. Slide 36: The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

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

  37. Slide 37: Main Measures to Secure Safety - Outline

    Main Measures to Secure Safety – 1 [Outline] 29  We promote the following measures to secure further safety after the Great East Japan Earthquake. I. Installation of flooding embankment III. Further enhancement of heat removal and III. Further enhancement of heat III. Further enhancement of heat re

  38. Slide 38: Main Measures to Secure Safety - Implementation Status

    Main Measures to Secure Safety - 2 [Implementation Status] 30 As of January 10, 2018 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 (flo

  39. Slide 39: Compliance Review under the New Regulatory Requirements

    Compliance Review under the New Regulatory Requirements 31 Latest Review Status ・On September 27, 2013, an application was presented requesting verification of compliance with new regulatory requirements for Units 6 and 7. ・After the compliance verification application was presented, amended applica

  40. Slide 40: Key License/Permit Steps in Enforcement of New Regulatory Requirements

    32 Pre-use inspection(※2) Successful passage of pre-use inspection TEPCO Application for pre-use inspection Key License/Permit Steps in Enforcement of New Regulatory Requirements Construction plan & safety regulations(※1) Construction plan authorization Safety regulation revision authorization NRA ※

  41. Slide 41: Other Initiatives

    Other Initiatives ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  42. Slide 42: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 33 <Cost reduction> − In addition to the cost reductions that has been made under the New Comprehensive Special Business Plan (TEPCO *1 : ¥4.8 trillion/10 years), TEPCO will execute, under the Revised New Comprehensive Special Business Plan, unprecedented an

  43. Slide 43: Efforts towards Nuclear Reform - 1

    Efforts towards Nuclear Reform - 1 34 - Framework for Nuclear Reform − Since April 2013, TEPCO has advanced the Nuclear Safety Reform Plan so that it may realize its determination that “the Fukushima nuclear accident will never be forgotten and we will be a nuclear operator which continues to create

  44. Slide 44: Efforts towards Nuclear Reform - 2

    Efforts towards Nuclear Reform – 2 35 - Report on Status of the Nuclear Safety Reform Plan - The Nuclear Safety Reform Plan consists of 6 measures that compensate for the lack of “safety awareness”, “technological capability” and “dialogue-promoting capability” which are the underlying contributors

  45. Slide 45: Main Efforts to Increase Corporate Value -1

    Main Efforts to Increase Corporate Value -1 36 <TEPCO Holdings> December 8, 2017: TEPCO Holdings joined a battery storage project for electric utility systems in the United States with TEPCO Power Grid (TEPCO Holdings is the first Japanese electric utility to join PJM, a regional transmission networ

  46. Slide 46: Main Efforts to Increase Corporate Value -2

    Main Efforts to Increase Corporate Value -2 37 <TEPCO Power Grid> November 9, 2017: TEPCO Power Grid and Tecnos Data Science Engineering, Inc. initiated joint development of an overhead power line diagnostic system, which uses AI with the aim of achieving more advanced abnormality detection as well

  47. Slide 47: The Energy for Every Challenge

    T=PCO The Energy for Every Challenge

Tokyo Electric Power Company Holdings — Q3 FY2017 Earnings Presentation on 6ix