Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q3 FY2023 Earnings Presentation

53 slides from Tokyo Electric Power's earnings presentation, Jan 31, 2024

  1. Slide 1: FY2023 3rd Quarter Financial Results

    FY2023 3rd Quarter Financial Results (April 1 – December 31, 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 3rd Quarter Financial Results

    Overview of FY2023 3rd Quarter Financial Results (Released on January 31, 2024) 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 3rd Quarter Financial Results

    Key Points of FY2023 3rd Quarter Financial Results 1 <FY2023 3rd Quarter Financial Results>  Operating revenue decreased due mainly 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 increas

  5. Slide 5: Consolidated Financial Results

    1. Consolidated Financial Results 2 (Unit: Billion Yen) FY2023 FY2022 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Operating Revenue ※１ 5,105.0 5,778.2 -673.2 88.3 Operating Income/Loss 382.5 -273.6 +656.1 - Ordinary Income/Loss ※２ 518.4 -373.0 +891.5 - Extraordinary Income/Loss -108.7 -29

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

    (Reference) Key Factors Affecting Performance 3 Area demand (Units: Billion kWh) FY2023 FY2022 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) （％） Area demand 193.1 194.9 -1.8 99.1 Foreign Exchange Rate/CIF FY2023 FY2022 (A)-(B) Apr-Dec (A) Apr-Dec (B) Foreign Exchange rate (Interbank,yen/dollar)

  7. Slide 7: Overview of Each Company

    2. Overview of Each Company 4 (Unit: Billion Yen) FY2023 FY2022 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Operating Revenue ※1 5,105.0 5,778.2 -673.2 88.3 TEPCO Holdings (HD) 421.6 378.3 +43.3 111.4 TEPCO Fuel & Power (FP) 2.9 2.9 -0.0 99.1 TEPCO Power Grid (PG) ※1 1,618.6 2,128.3 -509.

  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 in 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-Dec Apr-Dec Extraordinary Income - 186.0 -186.0 Gain on sales of subsidiaries and affiliates’ stock - 123.3 -123.3 Gain on sales of fixed assets - 62.7 -62.7 Extraordinary Loss 108.7 483.7 -375.0 Expenses fo

  10. Slide 10: Consolidated Financial Position

    5. Consolidated Financial Position 7  Total assets balance increased by 591.9 billion yen due mainly to an increase in current assets.  Total liabilities balance increased by 96.9 billion yen due mainly to increases in short-term loans.  Total net assets balance increased by 494.9 billion yen due

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

    (Reference) Year-on-Year Comparisons for TEPCO Holdings 8 Ordinary income/loss Profit Structure (Units: Billion Yen) Profit is dividend income, decommissioning charges profit, management consultation fees, wholesale power sales of nuclear power, etc. Increase in Others received -20.6 ¥17.0 billion d

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

    (Reference) Year-on-Year Comparisons for TEPCO Fuel & Power 9 Excluding time-lag impact Ordinary income/loss -71.5 (Units: Billion Yen) Profit Structure Impact of Fuel procurement price, etc Overseas/renewable Main profit is profit of entities accounted for using energy generation equity method, suc

  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, and this is fluctuated by area demand. Expenses is mainly for repairs and depreciation costs of transmission and distribution faci

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

    (Reference) Year-on-Year Comparisons for TEPCO Energy Partner 11 Profit Structure Operating revenue is mainly electricity sales revenue, and this is fluctuated by electricity sales volume. Ordinary income/loss 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 ¥7.5 billion Profit is mainly wholesale power sales of Decrease in wholesale decrease in hydroelectric and new energies. power sales, etc. Repair costs profits Expenses is mai

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

    (Reference) Image of Time-Lag 13 FY2022 Apr-Dec FY2023 Apr-Dec Impact from positive turn Gain of time-lag +166.0 billion + 538.0 billion yen yen Revenue side element Loss -372.0 billion Cost side element yen 2022/04 2022/07 2022/10 2023/01 2023/04 2023/07 2023/10 2024/01 ©Tokyo Electric Power Compan

  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 Progress in the Field (Progress of Safety Measure Work and Other Matters.) 33 The status of Grants–in-aid from Nuclear Damage Compensation and 18 Progre

  19. Slide 19: FY2023 3rd Quarter Financial Results Detailed Information

    16 FY2023 3rd 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-Dec(A) Apr-Dec(B) (A)-(B) (A)/(B) (%) Operating Revenue ※1 5,105.0 5,778.2 -673.2 88.3 Operating Expenses ※1 4,722.5 6,051.9 -1,329.3 78.0 Operating Income / Loss 382.5 -273.6 656.1 － Non-operating Revenue 195.1 4.

  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-Dec 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) Dec. 31 Mar. 31 Dec.31 Mar. 31 Comparison (A)-(B) 2023 (A) 2023 (B) 2023 (A) 2023 (B) (A)-(B) (A)/(B) (%) Bonds 3,539.6 3,400.4 139.2 Total Assets 14,155.0 13,563.0 591.9 104.4 Long-term Debt 1

  23. Slide 23: Key Factors Affecting Performance

    Key Factors Affecting Performance 20 ※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

  24. Slide 24: Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated

    Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated 21 Retail Electricity Sales Volume（EP consolidated） Unit: Billion kWh FY2023 Apr-Sep Oct Nov Dec Oct-Dec Apr-Dec Lighting 27.29 4.21 3.83 4.84 12.88 40.17 Power 70.21 11.17 10.25 10.55 31.96 102.17 Total 97.50 15.38 14.0

  25. Slide 25: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 22 Amount at Maturity (As of Dec. 31, 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. - Dec. of fiscal 2023 totaled 250.0 billion yen. ©Tokyo Electric Power Company

  26. Slide 26: Action to Implement Management that is Conscious of Cost of Capital and Stock Price

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

  27. Slide 27: Action to Implement Management that is Conscious of Cost of Capital and Stock Price (repost)

    Action to Implement Management that is Conscious of Cost of Capital and Stock Price (repost) 24 TEPCO 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 initia

  28. Slide 28: Secure 500 billion yen in annual funding to fulfill our responsibilities to Fukushima

    （Reference）Secure 500 billion yen in annual funding to fulfill our responsibilities to Fukushima 25 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

  29. Slide 29: Initiatives of TEPCO Energy Partner

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

  30. Slide 30: The revision of extra-high voltage and high voltage electricity rate plans

    The revision of extra-high voltage and high voltage electricity rate plans 27  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

  31. Slide 31: 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 28  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

  32. Slide 32: Approval of the regulated rate increases

    Approval of the regulated rate increases 29  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

  33. Slide 33: 2023 TEPCO Energy Savings Program

    2023 TEPCO Energy Savings Program 30  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

  34. Slide 34: Services in the 2023 TEPCO Energy Savings Program

    Services in the 2023 TEPCO Energy Savings Program 31  The following programs have been undertaken between May 2023 and now. Households Corporations Applications closed on Assist in reducing energy use in households 11/17 • Share energy-saving tips in an easily understandable way ①Assist in introduc

  35. Slide 35: Status of Kashiwazaki-Kariwa Nuclear Power Station

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

  36. Slide 36: Progress in the Field (Progress of Safety Measure Work and Other Matters)

    Progress in the Field (Progress of Safety Measure Work and Other Matters.) 33  On December 27, 2023, the Nuclear Regulation Authority (NRA) decided to change the response category for Kashiwazaki-Kariwa Nuclear Power Station from 4 to 1. Re-confirmations have also been made on qualifications as a r

  37. Slide 37: Progress in the Field (Main Equipment Integrity Check)

    Progress in the Field (Main Equipment Integrity Check [Details Specifically Checked in Pre-service Operator Inspection]) 34  Checks have been made on the 24-hour operation of emergency diesel generators, and on whether the function of the turbine system, reactor system, and other main equipment lon

  38. Slide 38: Communication with Local Communities

    Communication with Local Communities 35  For communication with local communities, the status of the station’s efforts are conveyed using PR magazines and social media, and two-way communication activities are undertaken through prefectural resident briefings, communication booths, and observations

  39. Slide 39: The Current Status of Fukushima Daiichi Nuclear Power Station and Future Initiatives

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

  40. Slide 40: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 37 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

  41. Slide 41: 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) 38 Maintain Overall Framework of Decommissioning Schedule *The trial retrieval is expected to start no later than around October 2024 Dec. 2011 Nov. 2013 Dec. 2021* End of 2031 30 ～ 40 years after cold shutdown P

  42. Slide 42: Fuel Debris Retrieval Schedule and Process

    Fuel Debris Retrieval Schedule and Process Based upon the Mid-to-Long Term Decommissioning Implementation Plan 2023 39  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

  43. Slide 43: Contaminated Water Measures

    Contaminated Water Measures 40  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

  44. Slide 44: Response Regarding the Handling of ALPS Treated Water (1)

    TEPCO Holdings’ Response Regarding the Handling of ALPS Treated Water 41 (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

  45. Slide 45: Response Regarding the Handling of ALPS Treated Water (2)

    TEPCO Holdings’ Response Regarding the Handling of ALPS Treated Water （2） Design of Required Equipment and ALPS Treated Water Discharge Plan 42  Having built facilities to secure safety and confirmed that ALPS treated water is diluted as planned and meets the discharge criteria, ALPS treated water

  46. Slide 46: Efforts to compensate for nuclear damages (1)

    Efforts to compensate for nuclear damages (1) Amount of compensation paid and amount of compensation to be paid 43  The amount of compensation paid as of the end of December 2023 was 11,137.9 billion yen.  We started receiving applications for additional compensation based on the 5th Supplement to

  47. Slide 47: Efforts to compensate for nuclear damages (2) Overview of Necessary Funds

    Efforts to compensate for nuclear damages (2)Overview of Necessary Funds 44  On December 22, 2023, the Japanese government’s Nuclear Emergency Response Headquarters decided on a strategy to raise the maximum limit on delivery bonds. (From 13.5 trillion yen to 15.4 trillion yen for victim compensati

  48. Slide 48: Other Initiatives

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

  49. Slide 49: Efforts for and Approaches to the Development of Offshore Wind Power Businesses

    Efforts of Renewable Energy Power Generation Businesses（RP） (1) Efforts for and Approaches to the Development of Offshore Wind Power Businesses 46  With fixed-bottom type wind turbines, many domestic wind power development projects rooted in the local community will be launched and the knowledge an

  50. Slide 50: Status of the Development of Offshore Wind Power Businesses

    Efforts of Renewable Energy Power Generation Businesses（RP） (2) Status of the Development of Offshore Wind Power Businesses 47  Domestically, TEPCO RP was selected as the operator of an offshore wind power generation project off the shores of Enoshima Island, Saikai City, Nagasaki Prefecture on Dec

  51. Slide 51: Main Efforts to Increase Corporate Value -1

    Main Efforts to Increase Corporate Value -1 48 <TEPCO Holdings> October 25, 2023 TEPCO HD, in collaboration with the School of Engineering of the University of Tokyo; Kandenko Co., Ltd.; Kyudenko Corporation; Shinryo Corporation; Taikisha Ltd.; Dai-Dan Co., Ltd.; Takasago Thermal Engineering Co., Lt

  52. Slide 52: Main Efforts to Increase Corporate Value -2

    Main Efforts to Increase Corporate Value -2 49 <TEPCO Power Grid> November 9, 2023 The joint venture with Tokyo Electric Power Services Co., Ltd. signed a contract with the Japan International Cooperation Agency on an “information collection/confirmation study operation on improvement in the operati

  53. Slide 53: Main Efforts to Increase Corporate Value -3

    Main Efforts to Increase Corporate Value -3 50 <TEPCO Energy Partner> October 13, 2023 TEPCO EP entered a business alliance in May 2023 with Starts Construction and Asset Management Co. Ltd. (Starts CAM) as well as Starts Amenity Corporation, regarding a service that uses the TEPCO EP-provided PPA s

Tokyo Electric Power Company Holdings — Q3 FY2023 Earnings Presentation on 6ix