Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q3 FY2020 Earnings Presentation

40 slides from Tokyo Electric Power's earnings presentation, Feb 10, 2021

1. Slide 1: FY2020 3rd Quarter Financial Results

   FY2020 3rd Quarter Financial Results (April 1 – December 31, 2020) 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 FY2020 3rd Quarter Financial Results

   Overview of FY2020 3rd Quarter Financial Results (Released on February 10, 2021) (Note) Please note that the following is an accurate and complete translation of the original Japanese version prepared for the convenience of our English-speaking investors. In case of any discrepancy between the trans

4. Slide 4: Key Points of FY2020 3rd Quarter Financial Results

   Key Points of FY2020 3rd Quarter Financial Results 1 < FY2020 3rd Quarter Financial Results >  Operating revenue decreased due to decreases in electricity sales volume resulting from increased competition for electricity sales and impact of the COVID-19 pandemic.  Ordinary income decreased due to

5. Slide 5: 1. Consolidated Financial Results

   1. Consolidated Financial Results 2 (Unit: Billion kWh) FY2020 FY2019 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Electricity Sales Volume 150.2 164.7 -14.5 91.2 (Unit: Billion Yen) FY2020 FY2019 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Operating Revenue 4,103.9 4,637.9 -534

6. Slide 6: 2. Points of Each Company

   2. Points of Each Company 3 <TEPCO Holdings>  Ordinary income decreased due to a decrease in wholesale power sales to TEPCO Energy Partner, Inc. and a decrease in received dividends from core operating companies, etc. <TEPCO Fuel & Power>  Ordinary income increased due to a positive turn in the ef

7. Slide 7: 3. Overview of Each Company

   3. Overview of Each Company 4 (Unit: Billion Yen) FY2020 FY2019 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Operating Revenue 4,103.9 4,637.9 -534.0 88.5 TEPCO Holdings 364.7 ※ 453.6 -88.8 80.4 TEPCO Fuel & Power 5.8 6.5 -0.6 89.3 TEPCO Power Grid 1,292.4 1,288.2 4.2 100.3 TEPCO Energy Pa

8. Slide 8: 4. Consolidated Extraordinary Income/Loss

   4. Consolidated Extraordinary Income/Loss 5 (Unit: Billion Yen) FY2020 FY2019 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) Extraordinary Income - ※2 367.2 -367.2 Extraordinary Loss ※1 95.4 ※3 205.3 -109.8 Expenses for Nuclear Damage Compensation 95.4 81.9 13.5 Other - 123.4 -123.4 Extraordinary Income

9. Slide 9: 5. Consolidated Financial Position

   5. Consolidated Financial Position 6 Total liabilities balance decreased by 112.5 billion yen primarily due to decrease in accrude expenses despite an increase in interest-bearing debts.  Total net assets balance increased by 121.7 billion yen primarily due to the appropriation of net income attri

10. Slide 10: <Reference> Key Factors Affecting Performance

    <Reference> Key Factors Affecting Performance 7 Area Demand (Unit: Billion kWh) Comparison FY2020 FY2019 Apr-Dec (A) Apr-Dec (B) (A)–(B) (A)/(B) (％) Area Demand 193.6 198.6 -5.0 97.5 Foreign Exchange Rates / CIF FY2020 FY2019 (A)–(B) Apr-Dec (A) Apr-Dec (B) Foreign Exchange Rate 106.1 108.7 -2.6 (In

11. Slide 11: <Reference> Consolidated Year-on-Year performance comparison ①

    <Reference> Consolidated Year-on-Year performance comparison ① ~Increases/Decreases chart~ 8 Power supply and demand, and transmission revenue -96.3 Others +21.9 Ordinary income/loss (Units: Billion yen) Decrease in Related to sales(After deducting renewable energy ) Related to Area demand Profits:7

12. Slide 12: <Reference> Consolidated Year-on-Year performance comparison ②

    <Reference> Consolidated Year-on-Year performance comparison ② ~Figures~ 9 （Units: Billion yen) FY2020 FY2019 (A)-(B) Apr-Dec(A) Apr-Dec(B) Ordinary Income 235.5 309.9 -74.3 Power supply and demand, and transmission 1,320.8 1,417.2 -96.3 revenue Retail/wholesale power sales 1,970.3 2,502.6 -532.3 （△

13. Slide 13: <Reference> Year-on-Year Comparisons for TEPCO Holdings

    <Reference> Year-on-Year Comparisons for TEPCO Holdings 10 Ordinary income/loss (Units: Billion yen) Profit Structure Profit is dividend income, decommissioning charges profit, management consultation fees, wholesale power sales of nuclear power, etc. Decrease in received dividends -42.0 Year-on-Yea

14. Slide 14: <Reference> Year-on-Year Comparisons for TEPCO Fuel & Power

    <Reference> Year-on-Year Comparisons for TEPCO Fuel & Power 11 Ordinary income/loss Profit Structure (Units: Billion Yen) Main profit is profit of entities accounted for using equity method, such as generation business at positive turn JERA. of power supply and Impact Year-on-Year from +21.0 demand

15. Slide 15: <Reference> Year-on-Year Comparisons for TEPCO Power Grid

    <Reference> Year-on-Year Comparisons for TEPCO Power Grid 12 Ordinary income/loss Profit Structure (Units: Billion Yen) Operating revenue is mainly transmission revenue, and this is fluctuated by area demand. Expenses is mainly for repairs and depreciation of transmission and distribution facilities

16. Slide 16: <Reference> Year-on-Year Comparisons for TEPCO Energy Partner

    <Reference> Year-on-Year Comparisons for TEPCO Energy Partner 13 Ordinary income/loss Profit Structure (Units: Billion Yen) 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 c

17. Slide 17: <Reference> Year-on-Year Comparisons for TEPCO Renewable Power

    <Reference> Year-on-Year Comparisons for TEPCO Renewable Power 14 Ordinary income/loss (Units: Billion Yen) Profit Structure Others Main profit is wholesale power sales of hydroelectric and new energies. -4.7 Main expense is for depreciation and repairs. Flow rate （Unit：％） Increase in FY2019 FY2020

18. Slide 18: Supplemental Material

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

19. Slide 19: Table of Contents

    Table of Contents Financial Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 15 Current Situation and Status of Units 1 through 4 21 Consolidated Balance Sheets 16 Key points of the revised “the Mid-and-Long-Term Roadma

20. Slide 20: FY2020 3rd Quarter Financial Results Detailed Information

    FY2020 3rd Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

21. Slide 21: Consolidated Statements of Income

    15 Consolidated Statements of Income (Unit: Billion Yen) FY2020 FY2019 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Operating Revenue 4,103.9 4,637.9 -534.0 88.5 Operating Expenses 3,951.1 4,390.8 -439.6 90.0 Operating Income / Loss 152.7 247.1 -94.4 61.8 Non-operating Revenue 120.9 103.5

22. Slide 22: Consolidated Balance Sheets

    Consolidated Balance Sheets 16 (Unit: Billion Yen) Dec. 31 Mar. 31 Comparison <Interest-bearing debt outstanding> (Unit: Billion Yen) 2020 (A) 2020 (B) (A)-(B) (A)/(B) (%) Dec. 31 Mar. 31 (A)-(B) 2020 (A) 2020 (B) Total Assets 11,967.0 11,957.8 9.2 100.1 Bonds 2,675.4 2,214.6 460.7 Long-term Debt 45

23. Slide 23: Key Factors Affecting Performance

    Key Factors Affecting Performance 17 Key Factors Affecting Performance（Results） FY2020 Apr-Dec FY2019 Apr-Dec ［Reference］ FY2019 Electricity Sales Volume (Billion kWh) 150.2 164.7 222.3 Gas Sales Volume (Million ton) 1.40 1.44 2.17 F o r e i g n E x c h a n g e R a t e (Interbank; yen per dollar) 10

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

    Seasonal Breakdown of Electricity Sales Volume and Total Power Generated 18 Electricity Sales Volume Unit: Billion kWh FY2020 Apr-Sep Oct Nov Dec Oct-Dec Apr-Dec Lighting 31.51 4.54 4.59 5.54 14.66 46.17 Power 71.00 11.26 10.63 11.15 33.04 104.04 Total 102.51 15.80 15.21 16.68 47.70 150.21 FY2019 [R

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

    Feed-in Tariff Scheme for Renewable Energy 19 （FY2020 Apr. – Dec. ) Avoidable Cost 117.4 billion yen * Renewable Subsidy Purchase Cost Energy 364.4 billion yen 481.8 billion yen Generators Cost Bearing Adjustment (Recorded as (Recorded as Power Organization Other Revenues) Purchasing Costs) (Green I

26. Slide 26: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 20 Amount at Maturity (As of Dec. 31, 2020) (Billion Yen) TEPCO Public Bond TEPCO Power Grid Public Bond (FY) Note: The amount redeemed for Apr. - Dec. of fiscal 2020 totaled 210.0 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. Currently working on re

29. Slide 29: Key points of the revised Mid-and-Long-Term Roadmap

    Key points of the revised “the Mid-and-Long-Term Roadmap” 22 ●Please visit the company webpage for the revised Mid-and-Long-Term Roadmap.  Setting out a basic principle of “coexistence of reconstruction and decommissioning”, while there has been gradual progress of residents’ return and reconstruct

30. Slide 30: Major milestones of Mid-and-Long-Term Roadmap

    Major milestones of Mid-and-Long-Term Roadmap 23 Maintain Overall Framework of Decommissioning Schedule 30 ～ 40 years after cold Dec. 2011 Nov. 2013 Now Dec. 2021 End of 2031 shutdown Hold Hold Phase 1 Phase 2 Phase 3-(1) Phase 3 Period until start of spent Period until start of fuel debris retrieva

31. Slide 31: Fuel Debris Retrieval Schedule and Process

    Fuel Debris Retrieval Schedule and Process Based upon the Mid-to-Long Term Decommissioning Implementation Plan 2020 24  By 2031, the scale of retrieval will be gradually enlarged at Unit 2 and preparations will be made to further enlarge the scale of retrieval. Commencement of fuel debris retrieval

32. Slide 32: Contaminated Water Management

    Contaminated Water Management 25 − 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. < Major Progress> Please visit our website for the latest

33. Slide 33: 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.

34. Slide 34: Main Measures to Secure Safety - 1 [Outline]

    Main Measures to Secure Safety – 1 [Outline] 26  Since the Great East Japan Earthquake, TEPCO has been implementing the following measures to secure higher levels of safety. I. Installation of flooding embankment III. Further enhancement of heat removal and III. Further enhancement of heat III. Fur

35. Slide 35: Main Measures to Secure Safety - 2 [Implementation Status]

    Main Measures to Secure Safety - 2 [Implementation Status] 27 As of January 13, 2021 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 (

36. Slide 36: Compliance Review under the New Regulatory Requirements

    Compliance Review under the New Regulatory Requirements 28 Latest Review Status ・On December 27, 2017, the Nuclear Regulation Authority (NRA) approved TEPCO’s application for revision of the reactor installation licence for Units 6 and 7. ・October 14, 2020, the NRA approved TEPCO’s application for t

37. Slide 37: Key License/Permit Steps in Enforcement of New Regulatory Requirements

    29 Pre-use inspection(※2) Termination of pre-use inspection TEPCO Application for pre-use inspection Key License/Permit Steps in Enforcement of New Regulatory Requirements design and Construction plan Safety regulation revision authorization authorization Design and construction plan & NRA safety re

38. Slide 38: Other Initiatives

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

39. Slide 39: Main Efforts to Increase Corporate Value-1

    Main Efforts to Increase Corporate Value-1 30 <TEPCO Holdings> October 1, 2020 The new quick charger for electric cars developed jointly with e-Mobility Power and Nichicon received the FY2020 Good Design Award (hosted by the Japan Institute of Design Promotion). October 16, 2020 Signed a Cooperative

40. Slide 40: Main Efforts to Increase Corporate Value-2

    Main Efforts to Increase Corporate Value-2 31 <TEPCO Energy Partner> November 5, 2020 Started receiving applications for the “TokuToku Gas Plan”, a city gas rate plan for households, in the Kansai and Chubu areas (started receiving applications on November 16, 2020) December 21, 2020 Signed an “Comp

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