Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — FY2015 Earnings Presentation

52 slides from Tokyo Electric Power's earnings presentation, Apr 28, 2016

  1. Slide 1: FY2015 Earnings Results

    FY2015 Earnings Results (April 1, 2015 – March 31, 2016) Tokyo Electric Power Company Holdings, Inc. April 28, 2016 ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  2. Slide 2: Regarding Forward-Looking Statements

    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 facts but rather predictions about the future, which inherently involve risks an

  3. Slide 3: Overview of FY2015 Earnings Results

    Overview of FY2015 Earnings Results (Former Tokyo Electric Power Company, Inc.) ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  4. Slide 4: Key Points of FY2015 Earnings Results and FY2016 Full-Year Forecasts

    Key Points of FY2015 Earnings Results and FY2016 Full-Year Forecasts 1 Ordinary income achieved profits in FY2015 for the third consecutive year. < FY2015 Earnings Results >  “Decrease in revenues and increase in profit” compared to the previous fiscal year. Ordinary income recorded 325.9 billion

  5. Slide 5: Consolidated Earnings Results - Year on Year Comparison

    1. Consolidated Earnings Results - Year on Year Comparison 2 (Unit: Billion Yen) Comparison FY2015(A) FY2014(B) (A)-(B) (A)/(B) (% ) Operating Revenues 6,069.9 6,802.4 -732.5 89.2 Operating Income 372.2 316.5 55.6 117.6 Ordinary Income 325.9 208.0 117.9 156.7 Extraordinary Income 773.0 887.7 -114.7

  6. Slide 6: Non-Consolidated Earnings Results - Year on Year Comparison

    2. Non-Consolidated Earnings Results - Year on Year Comparison 3 (Unit: Billion Yen) Comparison FY2015(A) FY2014(B) (A)-(B) (A)/(B) (% ) Operating Revenues 5,896.9 6,633.7 -736.7 88.9 Operating Income 340.7 278.9 61.8 122.2 Ordinary Income 327.5 167.3 160.1 195.7 Extraordinary Income 760.8 883.6 -12

  7. Slide 7: Power Demand and Supply

    - Year on Year Comparison 4 3. Power Demand and Supply Electricity Sales Volume (Unit: Billion kWh) Comparison FY2015(A) FY2014(B) (A)-(B) (A)/(B) (%) Lighting 89.4 90.7 -1.3 98.6 Power 9.6 9.9 -0.3 97.3 Liberalized segment 148.1 156.5 -8.4 94.6 Total 247.1 257.0 -10.0 96.1 Total Power Generated and

  8. Slide 8: Key Factors Affecting Performance

    4. Key Factors Affecting Performance - Year on Year Comparison 5 FY2015(A) FY2014(B) (A)-(B) Foreign Exchange Rate (Interbank, yen/dollar) 120.1 109.8 10.3 Crude Oil Prices (All Japan CIF, dollar/barrel) 48.7 90.4 -41.7 LNG Prices (All Japan CIF, dollar/barrel) 50.3 88.7 -38.4 <Fluctuation of Foreig

  9. Slide 9: Status of Income and Expenditure (Non-Consolidated) - Revenues

    5. The Status of Income and Expenditure (Non-Consolidated) 6 - Year on Year Comparison (1) Revenues (Unit: Billion Yen) Comparison FY2015 (A) FY2014(B) (A)-(B) (A)/(B) (%) (Operating Revenues) 5,896.9 6,633.7 -736.7 88.9 Electricity Sales Revenues 5,237.0 6,007.8 -770.7 87.2 ・Decrease in electricity

  10. Slide 10: Status of Income and Expenditure (Non-Consolidated) - Expenditures

    6. The Status of Income and Expenditure (Non-Consolidated) 7 - Year on Year Comparison (2) Expenditures (Unit: Billion Yen) Comparison ・Decrease in thermal power FY2015 (A) FY2014 (B) generation -170.0 (A)-(B) (A)/(B) (%) ・Effect of fluctuations of Personnel Expenses 369.3 355.0 14.2 104.0 exchange

  11. Slide 11: Increase/Decrease of Consolidated Business Performance

    7. Increase/Decrease of Consolidated Business Performance 8 - Year on Year Comparison  Ordinary Income increased 117.9 billion yen to 325.9 billion yen. Ordinary Income Factors related to Power Supply and Demand Others (Unit: Billion Yen) (including renewable energy） -44.1 +162.0 Improvement of For

  12. Slide 12: Extraordinary Income / Loss (Consolidated)

    8. Extraordinary Income / Loss (Consolidated) - Year on Year Comparison 9 (Unit: Billion Yen) FY2015 FY2014 Comparison Extraordinary Income 773.0 887.7 -114.7 Grants-in-aid from NDF* 699.7 868.5 -168.7 Gain on sales of fixed assets - 19.2 -19.2 Gain on revision of retirement benefit plan 61.0 - 61.0

  13. Slide 13: Consolidated Financial Position

    9. Consolidated Financial Position - Year on Year Comparison 10 Total assets decreased 552.9 billion yen mainly due to decline in electric utility plant and equipment. Total liabilities decreased 668.8 billion yen mainly due to decline in interest-bearing debt. Equity ratio improved by 1.5%. Bala

  14. Slide 14: Consolidated Cash Flow

    10. Consolidated Cash Flow - Year on Year Comparison 11 Cash flow from operating activities increased 1,077.5 billion yen mainly due to increase in electricity sales revenues. Cash flow from investing activities decreased 620.9 billion yen mainly due to purchases of property, plant and equipment.

  15. Slide 15: Supplemental Material

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

  16. Slide 16: Table of Contents

    Table of Contents Earnings Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 12 Current Situation and Status of Units 1 through 4 30 Breakdown of Non-Consolidated Ordinary Revenues 13 Overview of the Mid-to-long Term Roa

  17. Slide 17: FY2015 Earnings Results Detailed Information

    FY2015 Earnings Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  18. Slide 18: Consolidated Statements of Income

    Consolidated Statements of Income 12 (Unit: Billion Yen) Comparison FY2015 (A) FY2014 (B) (A)-(B) (A)/(B) (%) Operating Revenues 6,069.9 6,802.4 -732.5 89.2 Operating Expenses 5,697.6 6,485.9 -788.2 87.8 Operating Income 372.2 316.5 55.6 117.6 Non-operating Revenues 71.1 48.9 22.1 145.3 Investment G

  19. Slide 19: Breakdown of Non-Consolidated Ordinary Revenues

    Breakdown of Non-Consolidated Ordinary Revenues 13 (Unit: Billion Yen) Comparison FY2015 (A) FY2014 (B) (A)-(B) (A)/(B) (%) Ordinary Revenues 5,999.1 6,677.4 -678.2 89.8 Operating Revenues 5,896.9 6,633.7 -736.7 88.9 Operating Revenues from Electric Power Business 5,791.3 6,497.6 -706.2 89.1 Electri

  20. Slide 20: Breakdown of Non-Consolidated Ordinary Expenses

    Breakdown of Non-Consolidated Ordinary Expenses 14 (Unit: Billion Yen) Comparison FY2015 (A) FY2014 (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 5,671.6 6,510.1 -838.4 87.1 Operating Expenses 5,556.2 6,354.7 -798.5 87.4 Operating Expenses for Electric Power Business 5,469.7 6,233.7 -763.9 87.7 Personne

  21. Slide 21: Year-on-Year Comparison of Non-Consolidated Ordinary Expenses - 1

    Year-on-Year Comparison of Non-Consolidated Ordinary Expenses - 1 15 Personnel expenses (¥355.0 billion to ¥369.3 billion) +¥14.2 billion Salary and benefits (¥260.3 billion to ¥258.3 billion) - ¥2.0 billion Retirement benefits (¥27.2 billion to ¥43.3 billion) +¥16.0 billion Amortization of actuaria

  22. Slide 22: Year-on-Year Comparison of Non-Consolidated Ordinary Expenses - 2

    Year-on-Year Comparison of Non-Consolidated Ordinary Expenses - 2 16 Maintenance expenses (¥378.2 billion to ¥389.9 billion) +¥11.6 billion Generation facilities (¥130.6 billion to ¥168.0 billion) +¥37.3 billion Hydroelectric power (¥9.8 billion to ¥13.7 billion) +¥3.8 billion T hermal power (¥71.4

  23. Slide 23: Year-on-Year Comparison of Non-Consolidated Ordinary Expenses - 3

    Year-on-Year Comparison of Non-Consolidated Ordinary Expenses - 3 17 Power purchasing costs (¥1,003.4 billion to ¥977.0 billion) - ¥26.3 billion Power purchased from other utilities (¥203.7 billion to ¥189.9 billion) - ¥13.7 billion Power purchased from other suppliers (¥799.6 billion to ¥787.0 bill

  24. Slide 24: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan earthquake 18 [Extraordinary Income/Loss, Non-Consolidated] Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation [Extraordinary Income] (Unit: Billion Yen) FY 2010 to Cumulative Item FY2014 FY2015 FY2013 Amount - Grants-

  25. Slide 25: Consolidated and Non-Consolidated Balance Sheets

    Consolidated and Non-Consolidated Balance Sheets 19 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion Yen) Mar. 31 Mar. 31 Comparison <Interest-bearing debt outstanding> 2016 (A) 2015 (B) (A)-(B) (A)/(B) (%) (Unit: Billion Yen) (Consolidated) 13,659.7

  26. Slide 26: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 20 (Unit: Billion Yen) Comparison FY2015 (A) FY2014 (B) (A)-(B) Cash flow from operating activities 1,077.5 872.9 204.5 Income / loss before income taxes and minority interests 186.6 479.0 -292.4 Depreciation and amortization 621.9 624.2 -2.2 Impairment loss 233

  27. Slide 27: Segment Information

    Segment Information 21 (Unit: Billion Yen) (Unit: Billion Yen) Comparison Comparison FY2015(A) FY2014(B) FY2015(A) FY2014(B) (A)-(B) (A)/(B) (%) (A)-(B) (A)/(B) (%) Operating Revenues 6,069.9 6,802.4 -732.5 89.2 Assets 13,659.7 14,212.6 -552.9 96.1 2,452.1 3,458.4 -1,006.2 70.9 Fuel & Power Company

  28. Slide 28: Dividend Policy

    22 Dividend Policy FY2015 Dividend and FY2016 Dividend Outlook - TEPCO paid out no interim dividend in fiscal 2015 and has decided not to pay out for fiscal 2015 year-end dividends. - We regret to plan no interim and year-end dividends for fiscal 2016. Dividends of Common Shares Dividend Per Share D

  29. Slide 29: Schedules for Corporate Bond Redemption (Non-consolidated)

    [Reference] Schedules for Corporate Bond Redemption (Non-consolidated) 23 (Billion Yen) *2 *1 Foreign currency-denominated bond (Breakdown) *2 Private bond (Breakdown) *1 *2 *2 *2 *2 *2 *2 (FY) Note: The amount redeemed for fiscal 2015 totaled 438.1 billion yen. ©Tokyo Electric Power Company Holding

  30. Slide 30: Key Factors Affecting Performance and Financial Impact

    [Reference] Key Factors Affecting Performance and Financial Impact 24 FY2016 FY2015 Key Factors Affecting Performance Full-year Full-year Projection Projection Actual (As of Jan. 29) Electricity Sales Volume (billion kWh) 240.8 247.1 252.5 Crude Oil Prices (All Japan CIF; dollars per barrel) - 48.7

  31. Slide 31: Seasonal Breakdown of Electricity Sales - Sales Volume, Total Power Generated and Purchased

    [Reference] Seasonal Breakdown of Electricity Sales - Sales Volume, 25 Total Power Generated and Purchased (Units: Billion kWh, %) FY2014 FY2015 Electricity Sales Volume Apr-Sep Oct-Mar Full year Apr-Sep Oct-Dec Jan. Feb. Mar. Jan-Mar Oct-Mar Full year 46.27 54.27 100.55 46.68 21.73 10.27 10.78 9.56

  32. Slide 32: Recent Demand Trend of Large-Scale Industries

    [Reference] Recent Demand Trend of Large-Scale Industries 26 - Electricity sales volume to large-scale industrial customers in fiscal 2015 decreased 4.5% due to decrease year-on-year sales growth in industries such as Paper & pulp, Chemicals, Ceramics & stone, Ferrous metals, Non-ferrous metals and

  33. Slide 33: Fuel Consumption and Procurement

    [Reference] Fuel Consumption and Procurement 27 Fuel Consumption Data and Projection 【 Reference】 FY2012 FY2013 FY2014 FY2015 FY2015 Full-year FY2016 Full-year Actual Actual Actual Actual Outlook Outlook (as of Jan 29) LNG(million tons) 23.71 23.78 23.49 21.55 － － Oil (million kｌ) 10.50 6.82 3.10 2.

  34. Slide 34: Gas Supply Business

    [Reference] Gas Supply Business 28 Sales Volume Revenue (Million ton) 販売量（万㌧） (Billion 売上高（億円）yen) 1.50 150 1.37 1.34 Sales Volume 1.31 1.24 1.20 Revenues 1.15 1.08 1.09 97.0 120.7 1.00 121.9 100 76.2 94.1 0.78 90.6 0.62 42.8 66.8 0.50 58.1 50 31.5 0.35 0.22 15.4 7.9 0.00 0 2004 05 06 07 08 09 10 11

  35. Slide 35: Oversea Business (Corporate)

    [Reference] Oversea Business (Corporate) 29 Investment Main Company or Project Name1 Location Output Start of commercial operation, etc. ratio Chang Bin & Fong Der Project T aiwan 19.5% 490MW, 980MW Commenced operations in Mar. 2004 Starbuck Project T aiwan 22.7% 490MW Commenced operations in Jun. 2

  36. Slide 36: The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives

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

  37. Slide 37: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 30 - 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

  38. Slide 38: Overview of the Mid-to-long Term Roadmap towards Decommissioning - 1

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of 31 Fukushima Daiichi Nuclear Power Station - 1 - TEPCO released “Mid-to-long Term Roadmap towards the decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4”in December, 2011. Based on the continually-revis

  39. Slide 39: Overview of the Mid-to-long Term Roadmap towards Decommissioning - 2

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of 32 Fukushima Daiichi Nuclear Power Station - 2 <Main target process of the Decommissioning> Previous Future efforts Area efforts Phase 2 (until commencement of fuel debris removal) Phase 3 (until decommissioning completed) Curre

  40. Slide 40: Contaminated Water Management

    Contaminated Water Management 33 − 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. − The countermeasures for “Isolate water from contaminatio

  41. Slide 41: Our Commitment to Nuclear Damage Compensation

    Our Commitment to Nuclear Damage Compensation 34 - To facilitate prompt and fair compensation for nuclear damages, TEPCO continues to set and announce its own detailed compensation guidelines and procedures to individuals and business entities based on Government’s Interim Guideline which comprehens

  42. Slide 42: Compensation Support by Nuclear Damage Compensation and Decommissioning Facilitation Corporation

    Compensation Support by Nuclear Damage Compensation and Decommissioning Facilitation Corporation 35 - After the enactment of the Nuclear Damage Liability Facilitation Fund Act, the Fund was officially established in September 2011. - Due to the partial revision of the Nuclear Damage Liability Facili

  43. Slide 43: 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.

  44. Slide 44: Main Measures to Secure Safety - 1 [Outline]

    Main Measures to Secure Safety – 1 [Outline] 36  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

  45. Slide 45: Main Measures to Secure Safety - 2 [Implementation Status]

    Main Measures to Secure Safety - 2 [Implementation Status] 37 As of As of April 27, 2016 October 21, 2015 Item Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 I. Installation of flooding embankment [banks] Completed Completed II. Countermeasures against inundation into buildings (1) Installation of

  46. Slide 46: Compliance Review under the New Regulatory Requirements - 1

    Compliance Review under the New Regulatory Requirements – 1 38 - In November 2013, the Nuclear Regulation Authority (NRA) started reviews for Kashiwazaki-Kariwa Nuclear Power Station Units 6 and 7 as to their compliance under the New Regulatory Requirements. - In August 2015, Kashiwazaki-Kariwa Nucl

  47. Slide 47: Compliance Review under the New Regulatory Requirements - 2

    39 Compliance Review under the New Regulatory Requirements - 2 ＜Review Process＞ NRA TEPCO July 8, 2013 September 27, 2013 Enforcement on New Submission of Application Application for permission for change in reactor Regulatory Requirements installation license Application for approval of constructio

  48. Slide 48: FY2015 Earnings Results Other Initiatives

    FY2015 Earnings Results Other Initiatives ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  49. Slide 49: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 40 <Cost reduction> − In the New Comprehensive Special Business Plan, TEPCO* and its subsidiaries & affiliated companies will implement further cost cuts of 1,419.4 billion yen and 108.5 billion yen, respectively from the previous Comprehensive Special Busin

  50. Slide 50: Efforts towards Nuclear Reform - 1 - Framework for Nuclear Reform

    Efforts towards Nuclear Reform - 1 - Framework for Nuclear Reform 41 − Since April 2013, TEPCO has advanced the Nuclear Safety Reform Plan so that we may realize our determination that “the Fukushima nuclear accident will never be forgotten and we will be a nuclear operator which continues to create

  51. Slide 51: Efforts towards Nuclear Reform - 2 - Nuclear Safety Reforms Activities

    Efforts towards Nuclear Reform – 2 42 - Nuclear Safety Reforms Activities carried out so far and Implementation of Self-assessment - The Nuclear Safety Reform Plan consists of 6 measures that compensate for the lack of “safety awareness”, “technological capability” and “dialogue-promoting capability

  52. Slide 52: TEPCO: The Energy for Every Challenge

    T=PCO The Energy for Every Challenge

Tokyo Electric Power Company Holdings — FY2015 Earnings Presentation on 6ix