Tokyo Electric Power Company Holdings, Incorporated · TSE:9501
Tokyo Electric Power — Merger or Acquisition (October 2014)
14 slides from Tokyo Electric Power's merger presentation, Oct 7, 2014
Slide 1: TEPCO and Chubu Electric to form comprehensive alliance
0 TEPCO and Chubu Electric to form comprehensive alliance - Creation of a global energy company competing worldwide - (Support documentation) October 7, 2014 Tokyo Electric Power Company, Incorporated
Slide 2: Framework of the New Comprehensive Special Business Plan
1. Framework of the New Comprehensive Special Business Plan 1 Creating a "New Power Business Model" instead of simply going back to the original state Fully utilize the comprehensive alliance throughout the entire supply chain, with the objective of stable delivery of electric power and fuel to
Slide 3: Background of Consideration of the Memorandum of Understanding
2. Background of Consideration of the Memorandum of Understanding 2 On October 7, 2014, TEPCO and Chubu Electric entered into a memorandum of understanding (MOU) on the formation of a comprehensive alliance covering the entire energy supply chain, from upstream investment and fuel procurement thro
Slide 4: Overview of the Memorandum of Understanding
3. Overview of the Memorandum of Understanding 3 TEPCO and Chubu Electric have concluded an MOU stating their intention to form and negotiate the details of a comprehensive alliance covering the entire energy supply chain from upstream investment and fuel procurement through power generation In
Slide 5: Overview of Alliance Joint Venture - Basic Philosophy
4. Overview of Alliance Joint Venture - Basic Philosophy 4 Chubu Electric and TEPCO will proceed with discussions on the Alliance with the aim of realizing the following three fundamental principals Basic Philosophy Providing customers with a stable supply of energy on an internationally competi
Slide 6: Overview of Alliance Joint Venture - Operating Policy, Business Strategy, Scope of Business
4. Overview of Alliance Joint Venture - Operating Policy, Business Strategy, Scope of Business 5 TEPCO and Chubu Electric have reached the following basic agreement on the operating policy, business strategy and scope of business of the Joint Venture Basic Philosophy TEPCO Chubu (Fuel & Power Elec
Slide 7: Business Strategy Concept - Conceptual Diagram
4. Business Strategy Concept - Conceptual Diagram 6 Drastic reduction of fuel costs − Reduction of fuel costs by leveraging increased procurement scale − Reduction of fuel consumption through the replacement of aging thermal power plants Integrated and optimized management and operation of the e
Slide 8: Expansion of Scale of Procurement (1) Background
5. Expansion of Scale of Procurement (1) Background 7 Comparative loss of bargaining position of Japanese buyers including the company through the growth of the market as a whole and the emergence of new buyers As a result it is becoming more difficult to secure advantageous conditions and stabl
Slide 9: Expansion of Scale of Procurement (2) Diversification of Suppliers and Strategic Transactions
6. Expansion of Scale of Procurement (2) Diversification of Suppliers and Strategic Transactions 8 By expanding our scale, we aim simultaneously to realize the goals of (1) diversification of suppliers and (2) obtaining favorable conditions through commitment to large volumes Diversification of LN
Slide 10: Replacement of Aging Thermal Power Plants - (1) Candidate Locations
7. Replacement of Aging Thermal Power Plants - (1) Candidate Locations 9 Priority will be given to replacement in strategic locations (where there is strong integration of power generation and fuel procurement, receipt and delivery through terminals and pipelines) Power plants will be constructe
Slide 11: Replacement of Aging Thermal Power Plants - (2) Effect
8. Replacement of Aging Thermal Power Plants - (2) Effect 10 By replacing aging LNG thermal power plants built 20 to 50 years ago with up-to-date facilities, thermal efficiency can be increased by approximately 20% In addition to reducing fuel consumption through power plant replacement, the All
Slide 12: Optimization of the entire supply chain - (1) Optimized functions
9. Optimization of the entire supply chain - (1) Optimized functions 11 By combining the LNG sources and LNG-related facilities of TEPCO and Chubu Electric, the Joint Venture will be able to create opportunities for strategic investment and optimization of operations Supply chain management will
Slide 13: Optimization of the Entire Supply Chain - (2) More advanced and larger chain
10. Optimization of the Entire Supply Chain - (2) More advanced and larger chain 12 The Lean Spec strategy that TEPCO has already announced is being implemented through appropriate steps throughout the entire supply chain The Alliance will increase the effect of the Lean Spec strategy by expandi
Slide 14: Reference: fuel and thermal power generation (FY2013)
Reference: TEPCO and Chubu Electric fuel and thermal power generation (FY2013) 13 Ratio of power sources of 10 power companies Overseas IPPs Share of output (Million kW) * Share of output includes other power generation in addition to thermal power generation Scale of LNG procurement Scale of fuel c
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