Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q3 FY2018 Earnings Presentation

44 slides from Tokyo Electric Power's earnings presentation, Jan 30, 2019

  1. Slide 1: FY2018 3rd Quarter Financial Results

    FY2018 3rd Quarter Financial Results (April 1 – December 31, 2018) 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 FY2018 3rd Quarter Financial Results

    Overview of FY2018 3rd Quarter Financial Results (Released on January 30, 2019) 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

  4. Slide 4: Key Points of FY2018 3rd Quarter Financial Results

    Key Points of FY2018 3rd Quarter Financial Results 1 < FY2018 3rd Quarter Financial Results >  Although electricity sales volume from TEPCO group companies decreased due to intensifying competition, operating revenue increased due to factors such as increases in fuel cost adjustments and transmissi

  5. Slide 5: Consolidated Financial Results

    1. Consolidated Financial Results 2 (Unit: Billion kWh) FY2018 FY2017 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Electricity Sales Volume 169.7 175.1 -5.4 96.9 (Unit: Billion yen) FY2018 FY2017 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (% ) Operating Revenue 4,553.2 4,206.4 346.

  6. Slide 6: Key Points of Each Company

    2. Key Points of Each Company 3 < TEPCO Holdings >  Ordinary income increased due to increases in dividend income and other areas. < TEPCO Fuel & Power >  Although fixed costs decreased from cost reduction efforts and other areas, ordinary income decreased due to increases in fuel expenses. < TEPC

  7. Slide 7: Overview of Each Company

    3. Overview of Each Company 4 (Unit: Billion kWh, yen/dollar) ・Decrease in other FY2018 FY2017 electricity revenue -17.6 Comparison Apr-Dec Apr-Dec ・Increase in sold power A r e a D e m a n d 201.4 200.5 0.9 to other suppliers ＋137.1 Foreign Exchange Rate (TTM) 111.2 111.7 - 0.5 (Unit: Billion yen)

  8. Slide 8: Consolidated Extraordinary Income/Loss

    4. Consolidated Extraordinary Income/ Loss 5 (Unit: Billion yen) FY2018 FY2017 Comparison Apr-Dec Apr-Dec Extraordinary Income/ Loss -109.7 -10.7 -99.0 Extraordinary Income － 128.6 -128.6 Grants-in-aid from NDF* － 128.6 -128.6 Extraordinary Loss 109.7 139.3 -29.6 Expenses for Nuclear Damage Compensa

  9. Slide 9: Consolidated Financial Position

    5. Consolidated Financial Position 6 Total assets decreased 96.2 billion yen primarily due to decreases in grants-in-aid receivable from NDF. Total liabilities decreased 219.8 billion yen primarily due to decreases in accounts payable-other and accrued expenses. Total net assets increased 123.5 b

  10. Slide 10: FY2018 Full-Year Financial Forecasts

    6. FY2018 Full-Year Financial Forecasts 7 Operating revenue was revised to approximately 6, 328 billion yen, increasing by 229 billion yen as compared with projections released on October 30, 2018, primarily due to increases in fuel cost adjustments and transmission revenue from non-TEPCO group com

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

    <Reference> Key Factors Affecting Performance（Results） 8 Area Demand (Unit: Billion kWh) FY2018 FY2017 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Area Demand 201.4 200.5 0.9 100.5 Foreign Exchange Rate / CIF FY2018 FY2017 (A)-(B) Apr-Dec (A) Apr-Dec (B) Foreign Exchange Rate (Interbank,

  12. Slide 12: Key Factors Affecting Performance (Financial Forecasts)

    <Reference> Key Factors Affecting Performance (Financial Forecasts) 9 Key Factors Affecting Performance FY2018 Projections FY2018 Projections (released on Jan. 30, 2019) (released on Oct. 30, 2018) Electricity Sales Volume (Billion kWh) 231.7 232.3 Crude Oil Prices (All Japan CIF; dollars per barrel

  13. Slide 13: Consolidated Ordinary Income/Loss - Year on Year Comparison

    <Reference> Consolidated Ordinary Income/ Loss –Year on Year Comparison 10 Ordinary Income / Loss (Unit: Billion Yen) Factors related to Power Supply and Demand Others (Including renewable energy) + 150.6 - 179.7 + 0.5 yen/$ Foreign exchange rate CIF + 21.2$/b Decrease + 5.0 Fuel cost - 268.0 in Pro

  14. Slide 14: Consolidated Ordinary Revenue

    <Reference> Consolidated Ordinary Revenue 11 (Unit: Billion Yen) FY2018 FY2017 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) (Operating Revenue) 4,553.2 4,206.4 346.7 108.2 Electricity Sales Revenue 3,470.6 3,402.3 68.3 102.0 Power Sold to Other Utilities and 320.5 178.8 141.6 179.2 Supplie

  15. Slide 15: Consolidated Ordinary Expenses

    <Reference> Consolidated Ordinary Expenses 12 (Unit: Billion Yen) FY2018 FY2017 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Personnel Expenses 225.5 245.7 -20.1 91.8 Fuel Expenses 1,148.2 932.9 215.3 123.1 Maintenance Expenses 185.4 208.7 -23.2 88.9 Depreciation 394.5 409.1 -14.6 96.4 Pow

  16. Slide 16: Supplemental Material

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

  17. Slide 17: Table of Contents

    Table of Contents Financial Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 13 Current Situation and Status of Units 1 through 4 21 Financial Impact of the Great East Japan Earthquake 14 Key Points from the 4th Revisio

  18. Slide 18: FY2018 3rd Quarter Financial Results Detailed Information

    FY2018 3rd Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  19. Slide 19: Consolidated Statements of Income

    13 Consolidated Statements of Income (Unit: Billion Yen) FY2018 FY2017 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Operating Revenue 4,553.2 4,206.4 346.7 108.2 Operating Expenses 4,292.7 3,910.7 381.9 109.8 Operating Income / Loss 260.4 295.6 -35.2 88.1 Non-operating Revenue 38.9 34.8 4.

  20. Slide 20: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan Earthquake 14 (Unit: Billion Yen) FY2018 Cumulative Item FY2010 to FY2017 Apr-Dec Amount ◇Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation ○Grants-in-aid based on Nuclear Damage Compensation and Decommissioning * * F

  21. Slide 21: Consolidated Balance Sheets

    Consolidated Balance Sheets 15 (Unit: Billion Yen) <Interest-bearing debt outstanding> (Unit: Billion Yen) Comparison Dec. 31 Mar. 31 Dec. 31 Mar. 31 (A)-(B) 2018 (A) 2018 (B) 2018 (A) 2018 (B) (A)-(B) (A)/(B) (%) Bonds 2,096.4 2,230.8 -134.4 Total Assets 12,495.5 12,591.8 -96.2 99.2 Long-term Debt

  22. Slide 22: Key Factors Affecting Performance and Financial Impact

    Key Factors Affecting Performance and Financial Impact 16 Key Factors Affecting Performance Financial Impact (Sensitivity) （Unit: Billion Yen） FY2018 【Reference】 FY2018 【Reference】 Apr-Dec Full-year Projections FY2017 Actual Performance Full-year Projections FY2017 Full-year Results Actual Performan

  23. Slide 23: Seasonal Breakdown of Electricity Sales Volume and Total Power Generated

    Seasonal Breakdown of Electricity Sales Volume and Total Power Generated 17 Electricity Sales Volume Unit: Billion kWh FY2018 Apr-Sep Oct Nov Dec Oct-Dec Apr-Dec Lighting 35.34 4.94 5.18 6.28 16.40 51.73 Power 80.74 12.69 12.07 12.48 37.24 117.97 Total 116.07 17.63 17.25 18.76 53.63 169.70 FY2017 [R

  24. Slide 24: Fuel Consumption Data

    Fuel Consumption Data 18 Fuel Consumption 【Reference】 FY2015 FY2016 FY2017 FY2018 FY2017 Actual Actual Actual Apr-Dec Apr-Dec LNG(million t) 21.55 21.06 20.80 14.92 14.89 Oil (million kｌ) 2.48 2.05 0.91 0.41 0.43 Coal (million t) 8.34 8.14 8.31 6.38 6.45 Note: The oil data is total of crude oil and

  25. Slide 25: Feed-in Tariff Scheme for Renewable Energy

    Feed-in Tariff Scheme for Renewable Energy (Purchase Cost Collection Flow) 19 （FY2018 Apr.- Dec. ) Avoidable Cost 120.0 billion yen * Renewable Subsidy Purchase Cost Energy 293.4 billion yen 413.5 billion yen Generators Cost Bearing Adjustment (Recorded as (Recorded as Power Organization Other Reven

  26. Slide 26: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 20 (Billion Yen) Amount at Maturity (As of Dec 31, 2018) TEPCO Public Bond TEPCO Power Grid Public Bond (FY) Note: The amount redeemed for Apr.- Dec. of FY 2018 totaled 407.3 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 re

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

    Main Measures to Secure Safety - 2 [Implementation Status] 26 As of January 9, 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 (f

  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: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 29 <Cost reduction> − In addition to the cost reductions that has been made under the New Comprehensive Special Business Plan (TEPCO *1 : 4.8 trillion yen/10 years), TEPCO has been executing, under the Revised New Comprehensive Special Business Plan, unprece

  39. Slide 39: Offshore Wind Power

    Improvement of Profitability - 1 9 - Turning the “Renewable Energy Business” into the Main Power Supply 30  Develop renewable energy, concentrating on overseas hydro power generation, domestic and overseas offshore wind power generation which are considered the most promising.  For offshore wind p

  40. Slide 40: Renewable Energy Business (Initiatives in Japan and Overseas)

    Improvement of Profitability - 2 10 - Renewable Energy Business (Initiatives in Japan and Overseas) 31  “Wind Power Business Development Office” established for proactive development of off-shore wind power business in Japan and overseas. Thus far accumulated in-house expertise and human resources

  41. Slide 41: Efforts towards Nuclear Reform - 1

    Efforts towards Nuclear Reform - 1 32 - 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

  42. Slide 42: Efforts towards Nuclear Reform - 2

    Efforts towards Nuclear Reform – 2 33 - 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 fac

  43. Slide 43: Main Efforts to Increase Corporate Value - 1

    Main Efforts to Increase Corporate Value -1 34 <TEPCO Holdings> November 1, 2018 Seabed survey started off the coast of Choshi, Chiba Prefecture, to check the feasibility of off-shore wind farm projects November 9, 2018 Bought stake in Vietnam’s CocSan hydropower plant, owned by Vietnamese hydropowe

  44. Slide 44: Main Efforts to Increase Corporate Value - 2

    Main Efforts to Increase Corporate Value -2 35 <TEPCO Power Grid> November 7, 2018 Signed a partnership agreement with NTT DATA Corporation for "Grid Databank Laboratory limited liability partnership" aimed at solving social problems and creating new added value by using data in cooperation with dif

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