Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — FY2023 Q2 Earnings Presentation

55 slides from Tokyo Electric Power's earnings presentation, Oct 31, 2023

  1. Slide 1: FY2023 2nd Quarter Financial Results

    FY2023 2nd Quarter Financial Results (April 1 – September 30, 2023) 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 FY2023 2nd Quarter Financial Results

    Overview of FY2023 2nd Quarter Financial Results (Released on October 31, 2023) 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 FY2023 2nd Quarter Financial Results

    Key Points of FY2023 2nd Quarter Financial Results 1 <FY2023 2nd Quarter Financial Results> ➢ Operating revenue decreased due to a decrease in PG’s revenue related to supply- demand adjustments caused by decreased fuel/market prices. ➢ Ordinary income/loss and quarterly net income/loss increased due

  5. Slide 5: Consolidated Financial Results

    1. Consolidated Financial Results 2 (Units: Billion Yen) FY2023 FY2022 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Operating Revenue ※１ 3,513.7 3,687.8 -174.1 95.3 Operating Income/Loss 354.7 -156.0 +510.8 - Ordinary Income/Loss ※２ 479.6 -281.6 +761.3 - Extraordinary Income/Loss -66.0 90.

  6. Slide 6: (Reference) Key Factors Affecting Performance

    (Reference) Key Factors Affecting Performance 3 Area demand (Units: Billion kWh) FY2023 FY2022 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) （％） Area demand 132.4 133.6 -1.3 99.1 Foreign Exchange Rate/CIF FY2023 FY2022 (A)-(B) Apr-Sep (A) Apr-Sep (B) Foreign Exchange rate 141.1 134.0 +7.1 (Inte

  7. Slide 7: Overview of Each Company

    2. Overview of Each Company 4 (Units: Billion Yen) (Unit: Billion FY2023 FY2022 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (%) Operating Revenue ※1 3,513.7 3,687.8 -174.1 95.3 TEPCO Holdings (HD) 298.5 261.4 +37.1 114.2 TEPCO Fuel & Power (FP) 1.9 1.9 -0.0 99.1 TEPCO Power Grid (PG) 1,081.7

  8. Slide 8: Points of Each Companies

    3. Points of Each Companies 5 ➢ HD: Ordinary income increased due mainly to an increase in received dividends from core operating companies. ➢ FP: Ordinary income increased due mainly to a positive turn om the effects of the time-lag from the fuel cost adjustment system at JERA. ➢ PG: Ordinary incom

  9. Slide 9: Consolidated Extraordinary Income/Loss

    4. Consolidated Extraordinary Income/Loss 6 (Unit: Billion Yen) FY2023 FY2022 Comparison Apr-Sep Apr-Sep Extraordinary Income - 123.3 -123.3 Gain on sales of subsidiaries and affiliates’ stock - 123.3 -123.3 Extraordinary Loss 66.0 32.7 +33.3 Expenses for Nuclear Damage Compensation※ 66.0 32.7 +33.3

  10. Slide 10: Consolidated Financial Position

    5. Consolidated Financial Position 7 ➢ Total assets balance increased by 704.9 billion yen due mainly to an increase in current assets. ➢ Total liabilities balance increased by 189.6 billion yen due mainly to increases in short-term loans. ➢ Total net assets balance increased by 515.3 billion yen du

  11. Slide 11: (Reference) Year-on-Year Comparisons for TEPCO Holdings

    (Reference) Year-on-Year Comparisons for TEPCO Holdings 8 Ordinary income/loss (Units: Billion Yen) Profit Structure Profit is dividend income, decommissioning charges Year-on-Year profit, management consultation fees, wholesale Others -9.0 +28.7 power sales of nuclear power, etc. Increase in receiv

  12. Slide 12: (Reference) Year-on-Year Comparisons for TEPCO Fuel & Power

    (Reference) Year-on-Year Comparisons for TEPCO Fuel & Power 9 Ordinary income/loss Excluding time-lag impact Profit Structure (Units: Billion Yen) -25.7 Main profit is profit of entities accounted for using Overseas/renewable equity method, such as generation business at Impact of Fuel procurement p

  13. Slide 13: (Reference) Year-on-Year Comparisons for TEPCO Power Grid

    (Reference) Year-on-Year Comparisons for TEPCO Power Grid 10 Ordinary income/loss (Units: Billion Yen) Profit Structure Operating revenue is mainly transmission revenue, ・Include approx. +56.0 decrease electricity and this is fluctuated by area demand. procurement expenses corresponding to a decreas

  14. Slide 14: (Reference) Year-on-Year Comparisons for TEPCO Energy Partner

    (Reference) Year-on-Year Comparisons for TEPCO Energy Partner 11 Profit Structure Ordinary income/loss Operating revenue is mainly electricity sales revenue, and this is fluctuated by electricity sales volume. Expenses are mainly power purchasing costs and transmission fees of connected supply. (Uni

  15. Slide 15: (Reference) Year-on-Year Comparisons for TEPCO Renewable Power

    (Reference) Year-on-Year Comparisons for TEPCO Renewable Power 12 Ordinary income/loss (Units: Billion Yen) Profit Structure Profit is mainly wholesale power sales of Repair costs and fixed asset retirement cost increases, etc. Year-on-Year hydroelectric and new energies. Expenses is mainly for depr

  16. Slide 16: (Reference) Image of Time-Lag

    (Reference) Image of Time-Lag 13 FY2022 Apr-Sep FY2023 Apr-Sep Gain +168.0 billion yen Revenue side Impact from positive turn element of time-lag + 507.0 billion yen Loss Cost side -339.0 billion element yen 2022/04 2022/09 2023/04 2023/09 ©Tokyo Electric Power Company Holdings, Inc. All Rights Rese

  17. Slide 17: Supplemental Material

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

  18. Slide 18: Table of Contents

    Table of Contents 15 Financial Results Detailed Information Status of Kashiwazaki-Kariwa Nuclear Power Station Consolidated Statements of Income 17 General inspections implemented 38 The status of Grants–in-aid from Nuclear Damage Compensation and 18 after discovering partially incomplete safety mea

  19. Slide 19: FY2023 2nd Quarter Financial Results Detailed Information

    16 FY2023 2nd Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  20. Slide 20: Consolidated Statements of Income

    Consolidated Statements of Income 17 (Unit: Billion Yen) FY2023 FY2022 Comparison Apr-Sep(A) Apr-Sep(B) (A)-(B) (A)/(B) (%) Operating Revenue ※1 3,513.7 3,687.8 -174.1 95.3 Operating Expenses ※1 3,158.9 3,843.9 -684.9 82.2 Operating Income / Loss 354.7 -156.0 510.8 － Non-operating Revenue 165.3 3.8

  21. Slide 21: Grants-in-aid from NDF and Expenses for Nuclear Damage Compensation

    The status of Grants-in-aid from Nuclear Damage Compensation and Decommissioning Facilitation 18 Corporation and Expenses for Nuclear Damage Compensation (Unit: Billion Yen) FY2023 Cumulative Item FY2010 to FY2022 Apr-Sep Amount ◇Grants-in-aid from Nuclear Damage Compensation and Decommissioning Fac

  22. Slide 22: Consolidated Balance Sheets

    Consolidated Balance Sheets 19 (Unit: Billion Yen) <Interest-bearing debt outstanding> (Unit: Billion Yen) Sep. 30 Mar. 31 Sep. 30 Mar. 31 Comparison (A)-(B) 2023 (A) 2023 (B) 2023 (A) 2023 (B) (A)-(B) (A)/(B) (%) Bonds 3,469.6 3,400.4 69.2 Total Assets 14,268.0 13,563.0 704.9 105.2 Long-term Debt 1

  23. Slide 23: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 20 (Unit: Billion Yen) FY2023 FY2022 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) Cash flows from operating activities 347.5 -173.1 520.6 Income / loss before income taxes*** 413.6 -181.6 595.2 Depreciation and amortization 175.3 168.7 6.5 Increase (decrease) in d

  24. Slide 24: Overview of Consolidated Cash Flows

    Overview of Consolidated Cash Flows - Year on Year Comparison 21 Cash and cash equivalents as of September 30, 2023 increased 531.3 billion yen to 1,248.7 billion yen. - Cash flows from operating activities increased 347.5 billion yen mainly due to income before income taxes - Cash flows from invest

  25. Slide 25: Key Factors Affecting Performance

    Key Factors Affecting Performance 22 ※１ Total of EP consolidated (EP/TCS/PinT) and PG (last resort supply/islands) Key Factors Affecting Performance（Results） ※２ Total (excluding indirect auctions) of EP consolidated (EP/TCS/PinT), PG (including inter-regional), and RP consolidated (RP/Tokyo Electric

  26. Slide 26: Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated

    Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated 23 Retail Electricity Sales Volume（EP consolidated） Unit: Billion kWh FY2023 Apr-Jun Jul Aug Sep Jul-Sep Apr-Sep Lighting 11.51 4.53 5.67 5.58 15.78 27.29 Power 30.94 12.77 13.44 13.06 39.27 70.21 Total 42.45 17.30 19.11

  27. Slide 27: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 24 Amount at Maturity (As of Sep. 30 2023) (Billion Yen) TEPCO Public Bond TEPCO Power Grid Public Bond TEPCO Renewable Power Public Bond 160.0 (FY) Note: The amount redeemed for Apr. - Sep. of fiscal 2023 totaled 200.0 billion yen. ©Tokyo Electric Power Company

  28. Slide 28: Action to Implement Management that is Conscious of Cost of Capital and Stock Price

    25 Action to Implement Management that is Conscious of Cost of Capital and Stock Price ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  29. Slide 29: Action to Implement Management that is Conscious of Cost of Capital and Stock Price

    Action to Implement Management that is Conscious of Cost of Capital and Stock Price 26 TECPO has set a basic policy of securing around 500 billion yen annually to restore trust from society and fulfill our responsibility to Fukushima and has been advancing corporate value improvement initiatives in

  30. Slide 30: (Reference) PBR and BPS (Consolidated)

    2927 (Reference)PBR and BPS (Consolidated) (PBR, times) (BPS, yen) • PBR is calculated from the closing price at the end of each fiscal year. (FY, FY end) • The amount of impact felt in conjunction with the application of IFRS by the equity method affiliate (JERA) in FY2022 has also been reflected i

  31. Slide 31: (Reference) ROA and ROE (Consolidated)

    (Reference) ROA and ROE (Consolidated) 28 40.0 -60.0 -80.0 ROA = Operating income / Average total assets -100.0 ROE = Net income or loss / Average shareholders’ equity • The amount of impact felt in conjunction with the application of IFRS by the equity method affiliate (JERA) in FY2022 has also bee

  32. Slide 32: (Reference) PER and EPS (Consolidated)

    (Reference) PER and EPS (Consolidated) 29 (EPS, yen) (FY, FY end) • PER is calculated with the closing price at the end of each fiscal year and cannot be calculated for FY2007, FY2008 , FY2010 , FY2011, FY2012 and FY2022 due to net loss. • The amount of impact felt in conjunction with the applicatio

  33. Slide 33: (Reference) Secure 500 billion yen in annual funding for Fukushima

    （Reference）Secure 500 billion yen in annual funding to fulfill our responsibilities to Fukushima 30 Status of raising 500 billion yen per year (Billion Yen) FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 ①Decommissioning reserve fund system 391.3 361.1 280.4 260.0 260.1 270.0 ②Special Contributions 70.0

  34. Slide 34: Initiatives of TEPCO Energy Partner

    31 Initiatives of TEPCO Energy Partner ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  35. Slide 35: The revision of extra-high voltage and high voltage electricity rate plans

    The revision of extra-high voltage and high voltage electricity rate plans 32 ➢ TEPCO has been rolling out revised rate plans for extra high-voltage and high-voltage customers in the Kanto area since April 2023. ➢ The power sourse composition and the fuel prices in the formula for calculating electr

  36. Slide 36: Establishment of a new extra high voltage and high voltage electricity rate plan

    Establishment of a new extra high voltage and high voltage electricity rate plan 33 ✓ In April 2023, a term to reflect around 30% of the change in spot market price was introduced into the electricity bill formula, in addition to the existing fuel cost adjustment term. This caused the electricity bi

  37. Slide 37: Approval of the regulated rate increases

    Approval of the regulated rate increases 34 ✓ On January 23, 2023, TEPCO Energy Partner applied for approval of changes to the Specified Retail Supply General Provisions for Retail Supply (regulated rates). Upon receiving the application, the METI Minister requested that we recalculate the costs on

  38. Slide 38: 2023 TEPCO Energy Savings Program

    2023 TEPCO Energy Savings Program 35 ✓ In FY2022, in addition to providing electricity stably, TEPCO Energy Partner implemented the 2022 TEPCO Energy Savings Program to reduce the burden on customers by assisting them in conserving electricity, which led to energy conserves of approx. 2.5 billion kW

  39. Slide 39: Services in the 2023 TEPCO Energy Savings Program

    Services in the 2023 TEPCO Energy Savings Program 36 ✓ The program was launched and began receiving applications in May 2023. ✓ TEPCO Energy Partners plans continue to implement measures to save energy and realize a carbon neutral society. Households Applications closed on 9/30 Corporations ①Assist

  40. Slide 40: Status of Kashiwazaki-Kariwa Nuclear Power Station

    37 Status of Kashiwazaki-Kariwa Nuclear Power Station ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  41. Slide 41: General inspections implemented after discovering partially incomplete safety measure renovations

    General inspections implemented after discovering partially incomplete safety measure renovations 38 ✓ The initial comprehensive inspection in response to the incomplete safety measures work at Kashiwazaki-Kariwa NPS was completed in September 20, 2022. ✓ Any items found to require additional attent

  42. Slide 42: Response to the 4 challenges under additional inspection

    Response to the 4 challenges, which will continue to undergo additional inspection 39 ✓ TEPCO will report measures for the 4 challenges to the NRA Secretariat starting with those whose effectiveness has been confirmed. ✓ The completion of the corrective action for “Operate the improved change manage

  43. Slide 43: Reconfirmation of the qualification of TEPCO as a reactor licensee

    Reconfirmation of the qualification of TEPCO as a reactor licensee 40 ✓ Currently, TEPCO is dealing with the inspection of TEPCO’s conformance to the “Basic Attitude as a Nuclear Operator” stipulated in the Kashiwazaki Kariwa NPS reactor facilities technical specifications and approved in 2020. The

  44. Slide 44: The Current Status of Fukushima Daiichi Nuclear Power Station and Future Initiatives

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

  45. Slide 45: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 42 ✓Spent fuel removal from Units 3 & 4 is complete. ✓Currently, preparation for Units 1 & 2 spent fuel removal and Units 1-3 fuel debris retrieval is being conducted. Main decommissioning work and steps ✓Please visit our website for latest informati

  46. Slide 46: Milestones and progress in the 5th revision of Mid-and-Long-Term Roadmap

    Milestones and progress in the 5th revision of Mid-and-Long-Term Roadmap(December 2019) 43 *To accommodate the effects of COVID-19 and to ensure the safety and reliability of the work, Maintain Overall Framework of Decommissioning Schedule the trial removal was rescheduled to start in the second hal

  47. Slide 47: Fuel Debris Retrieval Schedule and Process

    Fuel Debris Retrieval Schedule and Process Based upon the Mid-to-Long Term Decommissioning Implementation Plan 2023 44 ✓ The Decommissioning Long-term Implementation Plan 2023 was published on March 30, 2023 with the progress made in decommissioning work and new challenges identified in FY2022. ✓ Re

  48. Slide 48: Contaminated Water Measures

    Contaminated Water Measures 45 ✓ Progress is being made on the three contaminated water initiatives detailed in the 5th revision of the Mid-and-long-term Roadmap (December 2019). (1) Initiative to promote contaminated water measures following the three basic policies (1) Remove the contamination sou

  49. Slide 49: TEPCO Holdings' Response Regarding the Handling of ALPS Treated Water (1)

    TEPCO Holdings’ Response Regarding the Handling of ALPS Treated Water 46 (1) TEPCO Holdings’ Approach to the Discharge of ALPS Treated Water ✓ TEPCO, as the body who has a responsibility to safely and steadily work on decommissioning the Fukushima Daiichi Nuclear Power Station, takes the government

  50. Slide 50: Response Regarding the Handling of ALPS Treated Water (2)

    TEPCO Holdings’ Response Regarding the Handling of ALPS Treated Water （2）Design of necessary facilities and the FY2023 discharge plan 47 ✓ Having built facilities to secure safety and confirmed that ALPS treated water is diluted as planned and meets the discharge criteria, ALPS treated water dischar

  51. Slide 51: Efforts to compensate for nuclear damages

    Efforts to compensate for nuclear damages 48 ✓ The amount of compensation paid as of the end of September 2023 was 10,899.7 billion yen. ✓ We started receiving applications for additional compensation based on the 5th Supplement to the Interim Guideline in April 2023. ✓ Damages incurred as a result

  52. Slide 52: Other Initiatives

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

  53. Slide 53: Main Efforts to Increase Corporate Value -1

    Main Efforts to Increase Corporate Value -1 50 <TEPCO Holdings> July 12, 2023 A consortium of 13 companies with TEPCO as the lead manager started a distributed energy source utilization demonstration test to develop a resource aggregation business with the end goal of balancing continuous deployment

  54. Slide 54: Main Efforts to Increase Corporate Value -2

    Main Efforts to Increase Corporate Value -2 51 <TEPCO Power Grid> July 5, 2023 Hitachi, Ltd. and TEPCO PG performed joint demonstration tests and established the underlying technology for interconnected grid energy management that distributes the computation load among data centers in multiple areas

  55. Slide 55: Main Efforts to Increase Corporate Value -3

    Main Efforts to Increase Corporate Value -3 52 <TEPCO Energy Partner> July 5, 2023 Chuo-Nittochi Co., Ltd., Sustainable Energy LLC and TEPCO EP signed an offsite physical corporate PPA that all of the electricity supplied to the 3 office buildings owned and managed by Chuo-Nittochi Co., Ltd. will be

Tokyo Electric Power Company Holdings — FY2023 Q2 Earnings Presentation on 6ix