Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Investor Presentation (March 2007)

21 slides from Tokyo Electric Power's investor presentation, Mar 29, 2007

  1. Slide 1: FY2007 Business Management Plan Presentation Materials

    FY2007 Business Management Plan Presentation Materials March 29, 2007 Tsunehisa Katsumata President Tokyo Electric Power Company The Tokyo Electric Power Company, Inc. All Rights Reserved ©2007

  2. Slide 2: Regarding Forward-Looking Statements (Performance Projections)

    Regarding Forward-Looking Statements (Performance Projections) 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 th

  3. Slide 3: Table of Contents

    Table of Contents . FY2007 Business Management Plan Introduction: Enhanced Initiatives to Restore Public Confidence 4 1 Management Targets 5 2 Execution of Sales Expansion Strategies 6 3 Cost Reduction and Capital Expenditures 7 4-1 Promoting New Businesses 8 4-2 Strengthening Energy and Environment

  4. Slide 4: FY2007 Business Management Plan

    . FY2007 Business Management Plan The Tokyo Electric Power Company, Inc. All Rights Reserved ©2007

  5. Slide 5: Introduction: Enhanced Initiatives to Restore Public Confidence

    Introduction: Enhanced Initiatives to Restore Public Confidence 4 Measures Already Taken to Preclude Recurrence of Unfortunate Incidents Incidents Establishment of a Corporate Culture and System that Assure Announcement of the Four Commitments (Sept. 02) Compliance with Rules and Regulations 1. Disc

  6. Slide 6: 1. Management Targets

    1. Management Targets 5 2004 2005 2006 2007 2007 2008 2008 2009 2010 FY2006 Business Management FY2007 Business Management Management Vision 2010 Targets Plan (FY2006 – 08) Plan (FY2007 – 09)* (FY2010 Targets) Increase Sales At least 10 billion kWh Electricity Sales Volume Expansion About 5 billion

  7. Slide 7: 2. Execution of Sales Expansion Strategies

    2. Execution of Sales Expansion Strategies 6 Electric Kitchens, etc. 0.4 billion kWh Electricity Sales Volume Expansion About 6 billion kWh (over 3 years FY07-09) Corporate and Large-scale Customer Sector Breakdown Household Sector: 2.7 billion kWh Total: 3.16 billion kWh 2.05 Air Conditioning 1.03

  8. Slide 8: 3. Cost Reduction and Capital Expenditures

    3. Cost Reduction and Capital Expenditures 7 Promotion of Cost Reductions (Billion y en) Capital Expenditures *Please refer to page 20 for a detailed breakdown. 1,436.5 Rationalize 1,399.2 Rationalize Facility Facility Configuration Configuration Others 141.9 1,279.8 ‹Strictly ‹ Strictlyselect selec

  9. Slide 9: 4-1. Promoting New Businesses

    4-1. Promoting New Businesses 8 Future Business Development Operating Revenues from Businesses other than Electric Power At least \ 300 billion 359.9 About 340 (Management Vision 2010) Energy and Overseas (Billion y en) Overseas About 300 Environment 248.6 Living Environment Expand in New Fuel Expan

  10. Slide 10: 4-2. Strengthening Energy and Environment Businesses

    4-2. Strengthening Energy and Environment Businesses 9 Upstream Upstream LNG LNG Sales Sales Businesses Businesses Procurement Procurement Business Business Establishing an LNG Value Chain Gas field development, Domestic Receiving LNG Shipping LNG Sales Terminals Gas sales production and liquefactio

  11. Slide 11: 4-3. Strengthening Overseas Businesses

    4-3. Strengthening Overseas Businesses 10 TEPCO Investment* Company or Project Name Location Output Start of commercial operation, etc. (Investment ratio) Eurus Energy Holdings US, UK, Italy, etc. ¥14.7 billion ( 60.0% ) 1,320MW Capital participation Sept. 2002 T arong North Power Station Project Au

  12. Slide 12: 5. Contributing to the Global Environment

    5. Contributing to the Global Environment 11 Measures against Global Warming Electricity Supply-side Measures Electricity Demand-side Measures Other Measures •Expanding the use of nuclear power generation •Utilizing the Kyoto Mechanism •Popularizing high-efficiency equipment •Improving the efficienc

  13. Slide 13: 6. Ordinary Income Targets

    6. Ordinary Income Targets 12 426.9 408.2 410 At least \ 400 billion* (+ \ 20 billion compared w ith prev ious plan) 397.2 350.0 384.5 342.8 330.9 345.9 350 At least \ 350 billion* 307.7 Ordinary Income (Cconsolidated, Billion yen) 320.0 319.5 Ordinary Income (Non-consolidated, Billion yen) 271.1 30

  14. Slide 14: 7. Free Cash Flow (FCF) Targets

    7. Free Cash Flow (FCF) Targets 13 891.5 134.3 Others (Investments and Loans) 80.9 Dividend Payments 649.4 604.5 Reduction of Interest-bearing Debt 113.4 543.5 506.2 87.2 approx. \ 500 billion 80.9 77.7 Prev ious plan: 81.0 410.4 94.0 At least \ 400 billion (FY06-08 av g.) 80.9 367.0 46.6 87.7 7.0 6

  15. Slide 15: Dividend Policy

    . Dividend Policy The Tokyo Electric Power Company, Inc. All Rights Reserved ©2007

  16. Slide 16: 8. Background to the Dividend Increase: Balance Sheet Improvement

    8. Background to the Dividend Increase: Balance Sheet Improvement 15 At least 24% (end of FY09) 25.0 24.0 Shareholders’ Equity Ratio (%) About 21% Interest-bearing Debt (Trillion y en) 19.6 At least 25% (end of FY10) 10.53 17.8 (Management Vision 2010) 9.86 16.2 9.42 8.97 8.58 14.9 14.1 7.90 7.62 13

  17. Slide 17: 9. Profit Sharing

    9. Profit Sharing 16 Concept of Profit Sharing Allocation of FCF Efficiency gains through company-wide streamlining Dividends Distribution of earnings to Investments and Loans shareholders Efficiency gains distributed based on the profit-sharing concept Investments for Group’s growth and development

  18. Slide 18: Reference: FY2007 Electricity Supply Plan

    Reference FY2007 Electricity Supply Plan The Tokyo Electric Power Company, Inc. All Rights Reserved ©2007

  19. Slide 19: Reference: Demand Outlook

    Reference Demand Outlook 18 (Billion kWh, Million kW, % ) FY2005 FY2006 FY2007 FY2016 Annual growth rate Comparison with previous plan (actual) (estimate) (projected) (projected) (FY2005-16) (as of FY2015) 2.8 (2.6) -1.9 (1.3) 3.3 (2.1) Current plan Previous plan Lighting Sales volume 95.2 93.3 96.5

  20. Slide 20: Reference: Major Facilities Plans

    Reference Major Facilities Plans 19 Start of commercial operation Location/Name Output/Scale Start of commercial operation (previous plan) Fukushima Daiichi Units 7 and 8 1.38 million kW ea. October 2013, October 2014 October 2012, October 2013 Nuclear December 2014 December 2014 Higashidori Units 1

  21. Slide 21: Reference: Capital Expenditures and Funding

    Reference Capital Expenditures and Funding 20 (Billion yen) FY2005 FY2006 FY2007 FY2008 (actual) (estimate) (previous plan) (planned) (planned) Hydroelectric 25.7 13.1 ( 13.4) 8.3 13.2 Thermal 53.1 73.9 ( 79.4) 69.5 78.2 Nuclear 39.4 47.3 ( 76.4) 81.4 136.8 Power sources subtotal 118.2 134.3 ( 169.2

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