Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — FY2019 Q3 Earnings Presentation

42 slides from Tokyo Electric Power's earnings presentation, Jan 30, 2020

1. Slide 1: FY2019 3rd Quarter Financial Results

   FY2019 3rd Quarter Financial Results (April 1 – December 31, 2019) 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 FY2019 3rd Quarter Financial Results

   Overview of FY2019 3rd Quarter Financial Results (Released on January 30, 2020) (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 transl

4. Slide 4: Key Points of FY2019 3rd Quarter Financial Results

   Key Points of FY2019 3rd Quarter Financial Results 1 < FY2019 3rd Quarter Financial Results > Although electricity sales volume for TEPCO group companies decreased, operating revenue increased due to a rise in fuel cost adjustment. Ordinary income increased due to a gain incurred by fuel cost adjust

5. Slide 5: 1. Consolidated Financial Results

   1. Consolidated Financial Results 2 ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

6. Slide 6: 2. Points of Each Company

   2. Points of Each Company 3 <TEPCO Holdings> Ordinary income decreased due to factors including decreased wholesale power sales to TEPCO Energy Partner, etc. <TEPCO Fuel & Power> Ordinary income increased due to factors including a gain incurred by fuel cost adjustment system time lag into income at

7. Slide 7: 3. Overview of Each Company

   3. Overview of Each Company 4 ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

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

   4. Consolidated Extraordinary Income/Loss 5 ※1 ※3 ※2 ※3 Nuclear Damage Compensation and Decommissioning Facilitation Corporation ※1 Overview of Extraordinary Income ※2 Overview of Extraordinary Loss ◆ Grants-in-aid from NDF (New) ◆Contingent property loss (Change) Considered book value on loss of de

9. Slide 9: 5. Extraordinary Loss on Disaster and Contingent Property Loss

   ５．Extraordinary Loss on Disaster and Contingent Property Loss 6 Repairing expenses for restoration on assets which was damaged by Typhoon #15, #19 and #21 occurred from September to October were booked as extraordinary loss on disaster and contingent property loss. Main reason for increasing from la

10. Slide 10: 6. Consolidated Financial Position

    6. Consolidated Financial Position 7 Total assets balance decreased by 711.0 billion yen primarily due to the transfer of thermal-power-generation facilities to JERA. Total liabilities balance decreased by 1,128.8 billion yen primarily due to the transfer of TEPCO Fuel & Power’s loans to JERA. Total

11. Slide 11: Reference: Key Factors Affecting Performance (Results)

    <Reference> Key Factors Affecting Performance (Results) 8 Area Demand (Unit: Billion kWh) Comparison FY2019 FY2018 Apr-Dec (A) Apr-Dec (B) (A)–(B) (A)/(B) (％) Area Demand 198.6 201.4 -2.8 98.6 Foreign Exchange Rates / CIF FY2019 FY2018 (A)–(B) Apr-Dec (A) Apr-Dec (B) Foreign Exchange Rate 108.7 111.

12. Slide 12: Reference: Consolidated Ordinary Income/Loss (Year-on-Year Comparison)

    <Reference> Consolidated Ordinary Income/Loss (Year-on-Year Comparison) 9 Factors related to power supply and demand, Others ＋290.4 and transmission revenue -225.5 Ordinary Income/loss Increase in Profits: Related to Sales (After deduct renewable energy) Related to Area demand 64.8 billion yen (Unit

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

    <Reference> Year-on-Year Comparisons for TEPCO Holdings 10 Ordinary Income/Loss （Unit：Billion Yen） Profit Structure Profit is dividend income, decommissioning charges profit, management consultation fees, wholesale power sales of hydro and nuclear power, etc. Decrease in management support fees, etc

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 （Unit：Billion Yen） Main profit is JERA’s share of profit of entities accounted for using equity method. Power-generation business was transferred to JERA on Mainly JERA’s share of April1, 2019. Domes

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 （Unit：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 Fuel cost transmission

17. Slide 17: Supplemental Material

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

18. Slide 18: Table of Contents

    Table of Contents Financial Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 14 Current Situation and Status of Units 1 through 4 21 Financial Impact of the Great East Japan Earthquake 15 Key Points of the reviseed "the

19. Slide 19: FY2019 3rd Quarter Financial Results Detailed Information

    FY2019 3rd Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

20. Slide 20: Consolidated Statements of Income

    14 Consolidated Statements of Income (Unit: Billion Yen) FY2019 FY2018 Comparison Apr-Dec (A) Apr-Dec (B) (A)-(B) (A)/(B) (%) Operating Revenue 4,637.9 4,553.2 84.7 101.9 Operating Expenses 4,390.8 4,292.7 98.0 102.3 Operating Income / Loss 247.1 260.4 -13.3 94.9 Non-operating Revenue 103.5 38.9 64.

21. Slide 21: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan Earthquake 15 (Unit: Billion Yen) FY2019 Cumulative Item FY2010 to FY2018 Apr-Dec Amount ◇Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation ○Grants-in-aid based on Nuclear Damage Compensation and Decommissioning *1 *2

22. Slide 22: Consolidated Balance Sheets

    Consolidated Balance Sheets 16 (Unit: Billion Yen) <Interest-bearing debt outstanding> (Unit: Billion Yen) Dec. 31 Mar. 31 Dec. 31 Mar. 31 Comparison (A)-(B) 2019 (A) 2019 (B) 2019 (A) 2019 (B) (A)-(B) (A)/(B) (%) Bonds 2,256.7 1,956.7 299.9 Total Assets 12,046.4 12,757.4 -711.0 94.4 Long-term Debt

23. Slide 23: Key Factors Affecting Performance

    Key Factors Affecting Performance 17 Key Factors Affecting Performance（Results） FY2019 Apr-Dec FY2018 Apr-Dec ［Reference］ FY2018 Electricity Sales Volume (Billion kWh) 164.7 169.7 230.3 Gas Sales Volume (Million ton) 1.44 1.18 1.77 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 Total Power Generated *On April 1st, 2019, TEPCO Fuel & Power Inc., succeeded its existing thermal power generation business to JERA Co., Inc. (50% investment by TEPCO Fuel & Power Inc., 50% investme

25. Slide 25: Feed-in Tariff Scheme for Renewable Energy (Purchase Cost Collection Flow)

    Feed-in Tariff Scheme for Renewable Energy (Purchase Cost Collection Flow) 19 （FY2019 Apr.- Dec. ) Avoidable Cost 130.2 billion yen * Renewable Subsidy Purchase Cost Energy 312.2 billion yen 442.4 billion yen Generators Cost Bearing Adjustment (Recorded as (Recorded as Power Organization Other Reven

26. Slide 26: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 20 (Billion Yen) Amount at Maturity (As of Dec. 31, 2019) TEPCO Public Bond TEPCO Power Grid Public Bond (FY) Note: The amount redeemed for Apr.- Dec. of fiscal 2019 totaled 232.5 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. To facilitate the remov

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 reconstructio

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: Contaminated Water Management

    Contaminated Water Management 24 − 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. <Main countermeasures> < Major Progress> Please visit our

32. Slide 32: 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.

33. Slide 33: Main Measures to Secure Safety - 1 [Outline]

    Main Measures to Secure Safety – 1 [Outline] 25 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 remo

34. Slide 34: Main Measures to Secure Safety - 2 [Implementation Status]

    Main Measures to Secure Safety - 2 [Implementation Status] 26 As of January 8, 2020 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 (f

35. Slide 35: Compliance Review under the New Regulatory Requirements

    Compliance Review under the New Regulatory Requirements 27 Latest Review Status ・On September 27, 2013, the applications for permission changes in reactor installation were presented to receive the regulatory standard compliance examination for Units 6 and 7. ・After the application for permission ch

36. Slide 36: Key License/Permit Steps in Enforcement of New Regulatory Requirements

    28 Pre-use inspection(※2) Successful passage of pre-use inspection TEPCO Application for pre-use inspection Key License/Permit Steps in Enforcement of New Regulatory Requirements Construction plan & safety regulations(※1) Construction plan authorization Safety regulation revision authorization NRA R

37. Slide 37: Other Initiatives

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

38. Slide 38: Initiatives of JERA: Taiwan Offshore Wind Power Project

    Initiatives of JERA Participation in Taiwan’s First Commercial Offshore Wind Power Generation Project 29 JERA is participating in “Formosa 1”, Taiwan’s first commercial offshore wind power generation project that started commercial operation in December 27, 2019 (total output: 128 MW). JERA has also

39. Slide 39: Efforts towards Nuclear Reform - 1

    Efforts towards Nuclear Reform - 1 30 - Framework for Nuclear Reform − Since April 2013, TEPCO has advanced the Nuclear Safety Reform Plan so that it may realize its determination that “the Fukushima nuclear accident will never be forgotten and we will be a nuclear operator which continues to create

40. Slide 40: Efforts towards Nuclear Reform - 2

    Efforts towards Nuclear Reform – 2 31 - Report on Status of the Nuclear Safety Reform Plan With respect to the Nuclear Safety Reform Plan, in addition to measures to make up for the inadequacies in "safety awareness", "interaction capabilities", "technical capabilities" that were the underlying fact

41. Slide 41: Main Efforts to Increase Corporate Value-1

    Main Efforts to Increase Corporate Value-1 32 <TEPCO Holdings> November 6, 2019 Started receiving applications for the fourth round of Free Electrons on November 4, 2019, together with nine of the world’s major electric utilities to discover and foster startups with promising electricity and energy-

42. Slide 42: Main Efforts to Increase Corporate Value-2

    Main Efforts to Increase Corporate Value-2 33 <TEPCO Energy Partner> October 29, 2019 Started accepting registration forms in October 31, 2019 for the “Tokutoku Gas AP Plan”, a residential city gas rate plan, in which customers can use Amazon Prime services without paying the annual fee. The plan co

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