Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q1 FY2019 Earnings Presentation

40 slides from Tokyo Electric Power's earnings presentation, Jul 31, 2019

1. Slide 1: FY2019 1st Quarter Financial Results

   FY2019 1st Quarter Financial Results (April 1 – June 30, 2019) Tokyo Electric Power Company Holdings, Inc. ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

2. Slide 2: ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

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

3. Slide 3: Overview of FY2019 1st Quarter Financial Results

   Overview of FY2019 1st Quarter Financial Results (Released on July 31, 2019) (Note) Please note that the following is an accurate and complete translation of the original Japanese version prepared for the convenience of our English-speaking investors. In case of any discrepancy between the translati

4. Slide 4: Key Points of FY2019 1st Quarter Financial Results

   Key Points of FY2019 1st Quarter Financial Results 1 < FY2019 1st Quarter Financial Results > Although electricity sales volume for TEPCO group companies decreased, operating revenue increased due to a rise in fuel cost adjustment. Ordinary income increased due to a gain incurred by fuel cost adjust

5. Slide 5: Consolidated Financial Results

   1. Consolidated Financial Results 2 (Unit: Billion kWh) FY2019 FY2018 Comparison April-June (A) April-June (B) (A)-(B) (A)/(B) (%) Electricity Sales Volume 52.2 52.6 -0.4 99.2 (Unit: Billion Yen) FY2019 FY2018 Comparison April-June (A) April-June (B) (A)-(B) (A)/(B) (%) Operating Revenue 1,504.0 1,3

6. Slide 6: Points of Each Company

   2. Points of Each Company 3 <TEPCO Holdings> Ordinary income increased due to decreases in costs through internalization of outsourcing business, etc. <TEPCO Fuel & Power> Ordinary income increased due to factors including a gain incurred by fuel cost adjustment system time lag into income at JERA,

7. Slide 7: Overview of Each Company

   3. Overview of Each Company 4 (Unit: Billion Yen) FY2019 FY2018 Comparison April-June (A) April-June (B) (A)-(B) (A)/(B) (%) Operating Revenue 1,504.0 1,354.0 150.0 111.1 TEPCO Holdings 188.0 194.1 -6.1 96.8 TEPCO Fuel & Power 2.1 414.6 -412.4 0.5 TEPCO Power Grid 412.3 393.0 19.2 104.9 TEPCO Energy

8. Slide 8: Consolidated Extraordinary Income/Loss

   4. Consolidated Extraordinary Income/Loss 5 (Unit: Billion Yen) FY2019 FY2018 Comparison April-June (A) April-June (B) (A)-(B) Extraordinary Income ※1 313.2 - 313.2 Gain on reversal of provision for loss on disaster 113.5 - 113.5 Gain on change in equity 199.7 - 199.7 Extraordinary Loss ※2 125.7 46.

9. Slide 9: Accounting Related to the Decommissioning of Fukushima Daini

   5. Accounting Related to the Decommissioning of Fukushima Daini 6 Of the 289.1 billion yen to be accounted for in the face of the decision to decommission, 95.6 billion yen, the book value for the generating facility and nuclear fuel, was recorded as together an extraordinary loss. The remaining 193

10. Slide 10: Consolidated Financial Position

    6. Consolidated Financial Position 7 Total assets balance decreased by 950.5 billion yen primarily due to the transfer of steam-power-generation facilities to JERA. Total liabilities balance decreased by 1,227.0 billion yen primarily due to the transfer of TEPCO Fuel & Power’s loans to JERA. Total n

11. Slide 11: Key Factors Affecting Performance (Results)

    <Reference> Key Factors Affecting Performance (Results) 8 Area Demand (Unit: Billion kWh) Comparison FY2019 FY2018 Apr-Jun (A) Apr-Jun (B) (A)–(B) (A)/(B) (％) Area Demand 62.3 61.8 0.4 100.7 Foreign Exchange Rates / CIF FY2019 FY2018 (A)–(B) Apr-Jun (A) Apr-Jun (B) Foreign Exchange Rate 109.9 109.1

12. Slide 12: Consolidated Ordinary Income/Loss (Year-on-Year Comparison)

    <Reference> Consolidated Ordinary Income/Loss (Year-on-Year Comparison) 9 Ordinary Income/Loss (Unit: Billion Yen) Factors related to Power Supply and Demand Others (Including renewable energy) ＋126.5 Increase in -95.3 Increase in EP’s purchased power Profits: that exceeded FP’s decreased fuel 31.2

13. Slide 13: Year-on-Year Comparisons for TEPCO Holdings

    <Reference> Year-on-Year Comparisons for TEPCO Holdings 10 Ordinary Income/Loss (Billion Yen) Profit Structure Profit is dividend income, decommissioning Others charges profit, management consultation fees, -2.5 electricity sales fees, etc. Year-on- Decrease in costs due to in- Year house production

14. Slide 14: Year-on-Year Comparison for TEPCO Fuel & Power

    <Reference> Year-on-Year Comparison for TEPCO Fuel & Power 11 Ordinary Income/Loss Profit Structure (Billion Yen) Main profit is JERA’s share of profit of entities accounted for using equity method. Power-generation business was transferred to JERA on April 1, 2019. Mainly JERA’s share of profit of

15. Slide 15: Year-on-Year Comparisons for TEPCO Power Grid

    <Reference> Year-on-Year Comparisons for TEPCO Power Grid 12 Ordinary Income/Loss Profit Structure (Billion Yen) Operating revenue is mainly transmission revenue, and this is fluctuated by area demand. Expenses is mainly for repairs and depreciation of transmission and Maintenance expenses and distr

16. Slide 16: Year-on-Year Comparisons for TEPCO Energy Partner

    <Reference> Year-on-Year Comparisons for TEPCO Energy Partner 13 Ordinary Income/Loss Profit Structure (Unit: Billion Yen) Operating revenue is mainly electricity sales revenue , and this is fluctuated by electricity sales volume. Expenses is mainly power purchasing costs . Increase in retail and wh

17. Slide 17: Supplemental Material

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

18. Slide 18: Table of Contents

    Table of Contents Financial Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 14 Current Situation and Status of Units 1 through 4 21 Financial Impact of the Great East Japan Earthquake 15 Key Points from the 4th Revisio

19. Slide 19: FY2019 1st Quarter Financial Results Detailed Information

    FY2019 1st Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

20. Slide 20: Consolidated Statements of Income

    14 Consolidated Statements of Income (Unit: Billion Yen) FY2019 FY2018 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Operating Revenue 1,504.0 1,354.0 150.0 111.1 Operating Expenses 1,452.7 1,285.1 167.6 113.0 Operating Income / Loss 51.2 68.8 -17.6 74.4 Non-operating Revenue 61.1 18.4 42.6

21. Slide 21: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan Earthquake 15 (Unit: Billion Yen) FY2019 Cumulative Item FY2010 to FY2018 Apr-Jun Amount ◇Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation ○Grants-in-aid based on Nuclear Damage Compensation and Decommissioning * * F

22. Slide 22: Consolidated Balance Sheets

    Consolidated Balance Sheets 16 (Unit: Billion Yen) <Interest-bearing debt outstanding> (Unit: Billion Yen) Jun. 30 Mar. 31 Jun. 30 Mar. 31 Comparison (A)-(B) 2019 (A) 2019 (B) 2019 (A) 2019 (B) (A)-(B) (A)/(B) (%) Bonds 1,996.6 1,956.7 39.8 Total Assets 11,806.9 12,757.4 -950.5 92.5 Long-term Debt S

23. Slide 23: Key Factors Affecting Performance

    Key Factors Affecting Performance 17 Key Factors Affecting Performance（Results） FY2019 Apr-Jun FY2018 Apr-Jun ［Reference］ FY2018 Electricity Sales Volume (Billion kWh) 52.2 52.6 230.3 Gas Sales Volume (Million ton) 0.39 0.36 1.77 F o r e i g n E x c h a n g e R a t e (Interbank; yen per dollar) 109.

24. Slide 24: Seasonal Breakdown of Electricity Sales Volume and Total Power Generated

    Seasonal Breakdown of Electricity Sales Volume and Total Power Generated 18 Electricity Sales Volume Unit: Billion kWh FY2019 Apr May Jun Apr-Jun Lighting 5.88 4.96 4.41 15.25 Power 12.19 11.87 12.86 36.92 Total 18.07 16.83 17.27 52.17 FY2018 [Ref.]Year-on-year Apr May Jun Apr-Jun Comparison (Apr-Ju

25. Slide 25: Feed-in Tariff Scheme for Renewable Energy (Purchase Cost Collection Flow)

    Feed-in Tariff Scheme for Renewable Energy (Purchase Cost Collection Flow) 19 （FY2019 Apr.- Jun. ) Avoidable Cost 52.3 billion yen * Renewable Subsidy Purchase Cost Energy 127.5 billion yen 179.9 billion yen Generators Cost Bearing Adjustment (Recorded as (Recorded as Power Organization Other Revenu

26. Slide 26: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 20 (Billion Yen) Amount at Maturity (As of Jun. 30, 2019) TEPCO Public Bond TEPCO Power Grid Public Bond (FY) Note: The amount redeemed for Apr.- Jun. of fiscal 2019 totaled 80.0 billion yen. ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

27. Slide 27: 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.

28. Slide 28: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 21 - 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

29. Slide 29: 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) 22 ●The revised version of the Mid-and-Long-Term Roadmap is available via our website. 1. Basic Approach toward Revision (1) Maintain approach that prioritizes safety and emphasizes risk reduction (2) Optimize overall deco

30. Slide 30: Revised Mid-and-Long-Term Roadmap Milestones

    Revised Mid-and-Long-Term Roadmap Milestones 23 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

31. Slide 31: Contaminated Water Management

    Contaminated Water Management 24 − 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. <Main countermeasures> < Major Progress> Please visit our

32. Slide 32: 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.

33. Slide 33: Main Measures to Secure Safety - 1 [Outline]

    Main Measures to Secure Safety – 1 [Outline] 25 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 remo

34. Slide 34: Main Measures to Secure Safety - 2 [Implementation Status]

    Main Measures to Secure Safety - 2 [Implementation Status] 26 As of July 10, 2019 Item Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Ⅰ. Installation of flooding embankment [banks] Completed *2 Completed Ⅱ. Countermeasures against inundation into buildings (1) Installation of tide embankments (flo

35. Slide 35: Compliance Review under the New Regulatory Requirements

    Compliance Review under the New Regulatory Requirements 27 Latest Review Status ・On September 27, 2013, the applications for permission changes in reactor installation were presented to receive the regulatory standard compliance examination for Units 6 and 7. ・After the application for permission ch

36. Slide 36: Key License/Permit Steps in Enforcement of New Regulatory Requirements

    28 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 R

37. Slide 37: Other Initiatives

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

38. Slide 38: Efforts towards Nuclear Reform - 1

    Efforts towards Nuclear Reform - 1 29 - 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

39. Slide 39: Efforts towards Nuclear Reform - 2

    Efforts towards Nuclear Reform – 2 30 - Report on Status of the Nuclear Safety Reform Plan With respect to the Nuclear Safety Reform Plan, in addition to measures to make up for the inadequacies in "safety awareness", "interaction capabilities", "technical capabilities" that were the underlying fact

40. Slide 40: Main Efforts to Increase Corporate Value

    Main Efforts to Increase Corporate Value 31 <TEPCO Holdings> April 23, 2019 Supported the “Task Force on Climate-related Financial Disclosures (TCFD)” that recommends the analysis and disclosure of the effects of climate change on corporate financials, the first domestic energy company to do so May

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