Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — The Tokyo Electric Power Company — Q1 FY2011 Earnings Presentation

43 slides from Tokyo Electric Power's earnings presentation, Aug 9, 2011

1. Slide 1: FY2011 1st Quarter Earnings Results

   FY2011 1st Quarter Earnings Results (April 1, 2011 – June 30, 2011) Presentation Material Masaru Takei Executive Vice President & Representative Director August 9, 2011 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

2. Slide 2: Regarding Forward-Looking Statements

   Regarding Forward-Looking Statements 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 predictions about the future, which inhere

3. Slide 3: Overview of FY2011 1st Quarter Earnings Results

   Ⅰ．Overview of FY2011 1st Quarter Earnings Results The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

4. Slide 4: Key points of FY2011 1st Quarter Earnings Results and Full-year Performance Outlook

   Key points of 1 FY2011 1st Quarter Earnings Results and Full-year Performance Outlook Overview  Both consolidated and non-consolidated operating revenues decreased. While unit sales prices rose year on year due to fuel price adjustments, electricity sales volume significantly dropped throughout the

5. Slide 5: FY2011 1st Quarter Earnings Results Summary (Consolidated and Non-consolidated)

   FY2011 1st Quarter Earnings Results Summary (Consolidated and Non-consolidated) 2 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion Yen) FY2011 (A) FY2010 (B) Comparison 1st Quarter 1st Quarter (A)-(B) (A)/(B)(%) Electricity Sales Volume (billion kWh)

6. Slide 6: Electricity Sales Volume, Total Power Generated and Purchased

   FY2011 1st Quarter Business Performance - 1 - Electricity Sales Volume, Total Power Generated and Purchased 3 Electricity Electricity Sales Sales Volume Volume (Units: Billion kWh, %) FY2011 April May June 1st Quarter 8.90 7.50 6.46 22.86 Regulated segment (-10.7) (-12.2) (-6.6) (-10.1) 8.05 6.72 5.

7. Slide 7: Comparison with Previous Fiscal Year Results

   FY2011 1st Quarter Business Performance – 2 - Comparison with Previous Fiscal Year Results 4 (Unit: Billion Yen) FY2011 1Q Actual (A) FY2010 1Q Actual (B) Comparison (A)-(B) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Operating Revenues 1,133.1 1,077.9 1

8. Slide 8: Key Factors Affecting Performance and Financial Impact

   FY2011 1st Quarter Business Performance - 3 - Key Factors Affecting Performance and Financial Impact 5 FY2011 Key Factors Affecting Performance 1st Quarter 1st Half Projection Full Year Actual As of Aug. 9 As of May 20 As of Aug. 9 As of May 20 Electricity sales volume (billion kWh) 60.2 ‐ ‐ ‐ ‐ Cru

9. Slide 9: Financial Impact of March 11 Great East Japan Earthquake

   FY2011 1st Quarter Business Performance – 4 - Financial Impact of March 11 Great East Japan Earthquake 6 Extraordinary Extraordinary Loss Loss from from Natural Natural Disaster Disaster (Unit: billion yen) FY2010 FY2011 Amount Items Actual 1st Quarter to Date ○ Expenses and/or losses for scrap and

10. Slide 10: Fuel Consumption and Procurement

    【Reference】 Fuel Consumption and Procurement 7 Fuel Fuel Consumption Consumption Results Results 【Reference】 FY2007 FY2008 FY2009 FY2010 FY2011 FY2010 Actual Actual Actual Actual 1st Quarter 1st Quarter LNG (million tons) 19.87 18.97 18.51 19.46 5.29 4.38 Oil (million kl) 9.99 8.63 4.37 4.75 0.76 0.

11. Slide 11: Power Demand in This Summer

    【Reference】 Power Demand in This Summer 8  As of August 8, the highest daily maximum power demand to date in this summer is 46.52GW, recorded at 3PM on Monday, August 8. (Highest temperature in Tokyo area on the day: 33.2℃)  A maximum demand in each day between the end of July and the beginning of

12. Slide 12: Progress status of Fukushima Daiichi Nuclear Power Station -1

    Progress status of Fukushima Daiichi Nuclear Power Station -1 9 - Key Points of Progress Status in the "Roadmap towards Restoration from the Accidents"  On July 19, TEPCO updated the roadmap for immediate actions at Fukushima Daiichi Nuclear Power Station initially released about 3 months earlier.

13. Slide 13: Roadmap towards Restoration from the Accidents at Fukushima Daiichi

    Progress status of Fukushima Daiichi Nuclear Power Station -2 - "Roadmap towards Restoration from the Accidents at Fukushima Daiichi Nuclear Power Station" 10 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

14. Slide 14: Roadmap towards Restoration from the Accidents (Cont'd)

    Progress status of Fukushima Daiichi Nuclear Power Station -2 - "Roadmap towards Restoration from the Accidents at Fukushima Daiichi Nuclear Power Station" (Cont’d) 11 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

15. Slide 15: Current Situation and Status of Fukushima Daiichi Nuclear Power Station

    Progress status of Fukushima Daiichi Nuclear Power Station -3 - Current Situation and Status of Fukushima Daiichi Nuclear Power Station (as of August 4) 12  At Units 1 through 3, we continually conduct pouring fresh water by temporary motor pumps into pressure vessels in order to cool down nuclear

16. Slide 16: FY2011 1st Quarter Earnings Results (Detailed Information)

    Ⅱ. FY2011 1st Quarter Earnings Results (Detailed Information) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

17. Slide 17: Statements of Income (Consolidated)

    Statements of Income (Consolidated) 13 (Unit: Billion yen) FY2011 (A) FY2010 (B) Comparison 1st Quarter 1st Quarter (A)-(B) (A)/(B) (%) Operating Revenues 1,133.1 1,221.6 -88.5 92.8 Operating Expenses 1,185.1 1,158.7 26.4 102.3 Operating Income -52.0 62.8 -114.9 － Non-operating Revenues 25.9 29.5 -3

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

    Revenues Breakdown (Non-consolidated) 14 (Unit: Billion yen) FY2011 (A) FY2010 (B) Comparison 1st Quarter 1st Quarter (A)-(B) (A)/(B) (%) Ordinary Revenues 1,102.9 1,189.0 -86.1 92.8 Operating Revenues 1,077.9 1,169.0 -91.0 92.2 Operating Revenues from Electric Power Business 1,057.3 1,152.1 -94.8 9

19. Slide 19: Expenses Breakdown (Non-consolidated)

    Expenses Breakdown (Non-consolidated) 15 (Unit: Billion yen) FY2011 (A) FY2010 (B) Comparison 1st Quarter 1st Quarter (A)-(B) (A)/(B) (%) Ordinary Expenses 1,174.6 1,157.8 16.8 101.5 Operating Expenses 1,140.0 1,116.7 23.3 102.1 Operating Expenses for ElectricPower Business 1,119.6 1,100.9 18.7 101.

20. Slide 20: Year-on-Year Comparison of Ordinary Expenses – 1 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 1 (Non-consolidated) 16 Personnel expenses (¥115.4 billion to ¥99.8 billion) -¥15.5 billion Salary and benefits (¥80.5 billion to ¥73.2 billion) -¥7.3 billion Retirement benefits (¥11.3 billion to ¥6.0 billion) -¥5.3 billion Decrease in amortization of

21. Slide 21: Year-on-Year Comparison of Ordinary Expenses – 2 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 2 (Non-consolidated) 17 Maintenance expenses (¥93.7 billion to ¥62.1 billion) -¥31.5 billion Generation facilities (¥41.1 billion to ¥23.7 billion) -¥17.4 billion Hydroelectric power (¥3.0 billion to ¥2.2 billion) -¥0.7 billion Thermal power (¥19.9 bill

22. Slide 22: Year-on-Year Comparison of Ordinary Expenses – 3 (Non-consolidated)

    Year-on-Year Comparison of Ordinary Expenses – 3 (Non-consolidated) 18 Power purchasing cost (¥167.3 billion to ¥177.1 billion) +¥9.7 billion Factors for Increase/Decrease Power purchased from other utilities (¥43.2 billion to ¥56.4 billion) Power purchased from other utilities: Increase due to emer

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

    Balance Sheets (Consolidated and Non-consolidated) 19 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Jun. 30, Mar. 31, Comparison 2011 (A) 2011 (B) (A)-(B) (A)/(B) (%) (Consolidated) 14,294.0 14,790.3 -496.3 96.6 Interest-bearing debt outstand

24. Slide 24: Schedules for Corporate Bond Redemption

    【Reference】 Schedules for Corporate Bond Redemption 20 Amount at Maturity (as of Mar.31, 2011) (billion yen) 800 747.9 Foreign currency-denominated 700 Domestic 625.9 585.5 600 548.9* 29.0 134.2 500 446.4 438.1 451.8 400 366.8 25.0 300 282.5 210.0 200 160.0 100 30.0 35.0 20.0 25.0 0 2011 2012 2013 2

25. Slide 25: Seasonal Breakdown of Electricity Sales

    【Reference】 Seasonal Breakdown of Electricity Sales - Sales Volume, Total Power Generated and Purchased 21 (Units: Billion kWh, %) FY2010 FY2011 Electricity Electricity Sales Sales Volume Volume 1st 2nd 3rd 4th 1st April May June Full Year April May June Quarter Quarter Quarter Quarter Quarter 9.97

26. Slide 26: Recent Demand Trend of Large-scale Industries

    【Reference】 22 Recent Demand Trend of Large-scale Industries  Quarterly electricity sales volume to large-scale industrial customers shrank 8.5% year on year due to a significant drop in industrial production level caused by the Great East Japan Earthquake and customers’ energy-saving efforts. 【Yea

27. Slide 27: TEPCO's Streamlining Policy

    【Reference】 TEPCO’s Streamlining Policy 23 Sell-off of Assets Reduction in Investment and Simplification and Rationalization of Expenses TEPCO Group* Starting sell-off of assets ready to leave Simplifying and rationalizing organizations Reducing expenses by 500 billion yen or more Aiming to gene

28. Slide 28: Investigation Committee on TEPCO's Management and Finances

    【Reference】 “Investigation Committee on TEPCO's Management and Finances” 24 Members Membersofofthe theCommittee Committee Ms. Mami Indo, Senior Managing Director, Daiwa Institute of Research Ltd. Mr. Yoshiyuki Kasai, Chairman, Central Japan Railway Company Mr. Kazuhiko Shimokobe, Attorney = Chair of

29. Slide 29: 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) 160 900 Crude Oil 800 140 Fuel Coal 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 Apr- May

30. Slide 30: The Current Status of Fukushima Daiichi & Daini Nuclear Power Stations and Compensation-related Issues

    【Reference】 The Current Status of Fukushima Daiichi & Daini Nuclear Power Stations and Compensation-related Issues The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

31. Slide 31: Overview of Incidents at Fukushima Daiichi Nuclear Power Station

    Overview of Incidents at Fukushima Daiichi Nuclear Power Station (as of August 4) 26  All the operating units were automatically “shutdown” with all control rods inserted immediately after the earthquake occurred. Nuclear reaction was successfully stopped.  Almost all of the “Cooling” functions at

32. Slide 32: Illustration of Circulatory Water-cooling Operations

    【Reference】 Illustration of Circulatory Water-cooling Operations 27 Accumulated water is injected into the reactor after being transferred and stored in the Centralized Radiation Waste Treatment Facility. Circulatory water-cooling operations started on Jun. 27. As of Aug. 7, the amount of contamin

33. Slide 33: Governmental Guideline for Nuclear Damage Compensation and TEPCO's Payment

    【Reference】 Governmental Guideline for Nuclear Damage Compensation and TEPCO’s Payment 28  TEPCO is paying out "Temporary Compensation" to evacuated and indoor-evacuated residents, agriculture, forestry and fisheries business and small and mid-size businesses, according to the first, second and sup

34. Slide 34: Law concerning Formation of a Nuclear Damage Compensation Support Organization - 1

    【Reference】 Law concerning Formation of a Nuclear Damage Compensation Support Organization - 1 29 Significant damage has arisen among residents and business operators due to the accident at TEPCO’s Fukushima nuclear power station. Government will support nuclear damage compensation in order to secu

35. Slide 35: Law concerning Formation of a Nuclear Damage Compensation Support Organization - 2

    【Reference】 Law concerning Formation of a Nuclear Damage Compensation Support Organization - 2 30  After some modifications in discussions with opposition parties, the bill was approved by the House of Representatives and the House of Councillors on July 28 and August 3, respectively. Key Points of

36. Slide 36: Establishment of Fukushima Nuclear Accidents Investigation Committee

    【Reference】 Establishment of "Fukushima Nuclear Accidents Investigation Committee" 31  As a party directly concerned in the nuclear accidents, TEPCO established our own “Fukushima Nuclear Accidents Investigation Committee” on June 11 to scrutinize a series of accidents and then appropriately reflec

37. Slide 37: The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    【Reference】 The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives (As of August 8, 2011 unless otherwise noted) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

38. Slide 38: Earthquake-Resistance and Safety

    Overview of Status of Initiatives 32 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. 18,

39. Slide 39: Status of Progress at Each Unit in Facility Soundness Evaluation

    Status of Progress at Each Unit in Facility Soundness Evaluation 33 ◆ 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 of Jul.

40. Slide 40: Reinforcement Work

    【Earthquake-Resistance and Safety Improvement Initiatives】 Reinforcement Work 34 ◆ 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 2010 Year 2011 Jan, Feb. M

41. Slide 41: Financial Impact of NPS Shutdown

    【Reference】 Financial Impact of NPS Shutdown 35 Substitute Substitute Power Power Generation Generation Cost Cost Aggregate Thermal Power Generation Cost (Actual, FY2011 1st Quarter) 9.5 yen / kWh － Nuclear Fuel Costs and Nuclear Back-end Costs 1.0 yen / kWh Substitute Power Generation Cost 8.5 yen

42. Slide 42: Outline of Emergency Safety Measures Kashiwazaki-Kariwa NPS

    【Reference】 Outline of Emergency Safety Measures Kashiwazaki-Kariwa NPS 36 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

43. Slide 43: Outline of Measures to Secure Safety at Kashiwazaki-Kariwa NPS

    【Reference】 Outline of Measures to Secure Safety at Kashiwazaki-Kariwa NPS 37 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2011

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