Chubu Electric Power Company,incorporated · TSE:9502

Chubu Electric Power Company,incorporated — 2Q FY2015 Earnings Presentation

69 slides from Chubu Electric Power Company,incorporated's earnings presentation, Nov 5, 2015

1. Slide 1: Investors Meeting 2nd Quarter FY2015

   I Investors t M Meeting ti 2 dQ 2nd Quarter t FY2015 November 2015 November, Note: The Company's fiscal year (FY) is from April 1 to March 31of the following year. FY2015 represents the fiscal year begun on April 1, 2015, and ended on March 31, 2016. 2nd Quarter (2Q) represents six months period end

2. Slide 2: Table of Contents

   Table of Contents IO Outline tli off Financial Fi i l Results R lt forf Six-Months Si M th Ended E d d September S t b 30, 30 2015 Summary of Financial Results <1> 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 1 Summary of Financial Results <2> 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 2 Electricity Sales Volume 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉 3 Generated and Received Power 䞉䞉䞉䞉䞉䞉䞉䞉䞉䞉

3. Slide 3: Outline of Financial Results for Six-Months Ended September 30, 2015

   I Outline of Financial Results for p Six-Months Ended September 30,, 2015 © 2015 Chubu Electric Power Co., Inc. All rights reserved.

4. Slide 4: Summary of Financial Results <1>

   Summary of Financial Results <1> 㻥1 -Operating O ti revenues decreased d d following f ll i 2Q off FY 20092009, ffor th the fi firstt time ti ini 6 years. -Ordinary income increased for two consecutive years since 2Q of FY2014. -We recorded decreased sales and increased profit following 2Q of FY2009

5. Slide 5: Summary of Financial Results <2>

   Summary of Financial Results <2> 㻥 2 <Consolidated ordinary income> On electric power business, consolidated ordinary income increased 171.9 billion yen compared with the 2014/2Q, 2014/2Q due to accrued income incurred by fuel cost adjustment system and decrease in fuel cost, affected by the fall of

6. Slide 6: Electricity Sales Volume

   Electricity Sales Volume 3 <Demand from customers under regulation> -Electric lighting Amounted to 15.3TWh, almost the same as in FY2014/2Q, mainly due to customer's power saving effect, in spite of an increase of meter-reading days. -Electric Electric power Dropped by 11.1% 1% to 2.7TWh, mainly due

7. Slide 7: Generated and Received Power

   Generated and Received Power 4 -Hydro Thanks to higher water flow, hydro power output increased by 0.9 TWh. (flow rate for 2015/2Q:114.3%, 2014/2Q:93.5%) -Interchanged, I t h d purchased h dP Power Increased I dbby 22.0 0 TWh TWh, due d to an iincrease in i purchase h off renewable energy. -Thermal

8. Slide 8: Summary of Forecast for FY2015

   Summary of Forecast for FY2015 12 5 13 [Consolidated] (Billion yen) FY 2015 forecast FY 2015 foerecast Change (Current) (July 31) (A) (B) (A-B) Operating revenue 22,890.0 890 0 22,860.0 860 0 30.00 30 Operating income 230.0 160.0 70.0 Ordinary income 200.0 130.0 70.0 Prfit attributable to owners of

9. Slide 9: Non-consolidated Forecast for FY2015 (compared to FY2014)

   Non-consolidated Forecast for FY 2015 (compared to FY 2014) 126 ((Billion yen) y ) FY 2015 FY 2014 Change Forecast Result (A) (B) (A)-(B) Operating revenues 2,680.0 2,899.0 approx. (219.0) O Operating i iincome 220 0 220.0 90 8 90.8 approx. 129.0 129 0 Ordinay income 190.0 41.9 approx. 148.0 Net inc

10. Slide 10: Impact of accrued income (loss) by fuel cost adjustment system

    䠄Reference䠅Impact of accrued income (loss) incurred by fuel 㻞㻝 cost adjustment system in FY2015 7 䚽Announcement in July䠄80 billion䠅 䚽Current䠄135 billion䠅 Average Fuel price Average Fuel price (basis of fuel cost adjustment charge) (basis of fuel cost adjustment charge) Standard fuel price Standard f

11. Slide 11: The Policy on Shareholder Return

    The Policy on Shareholder Return 8 - Dividend Forecast -The Company will work to maintain stable dividends after taking account of financial condition and other factors, while continuously investing in building and operating facilities that are essential for a safe and stable supply of electricity.

12. Slide 12: Management Situation

    Management g Situation © 2015 Chubu Electric Power Co., Inc. All rights reserved.

13. Slide 13: Development of high efficiency Thermal Power Plants

    Development of high efficiency Thermal Power Plants 㻝㻡 9 - Outline of development of high efficiency thermal power plants -Operation Schedule for High-Efficiency (FY) Combined-Cycle Power Generation Systems 2013 2014 2015 2016 2017 2018 䞉䞉䞉䞉䞉䞉 2021 Nishi-Nagoya Thermal Taketoyo Thermal Power Power P

14. Slide 14: TEPCO and Chubu Electric Comprehensive Alliance <1>: Establishment of JERA

    TEPCO and Chubu Electric to form Comprehensive Alliance<1>: Establishment of JERA Co., Inc. 10 - Tokyo Electric Power Company, Incorporated (hereinafter, “TEPCO”) and Chubu Electric established “JERA Co., Inc.” effective from April 30, 2015, as a new company that implements “a comprehensive alliance

15. Slide 15: TEPCO and Chubu Electric Comprehensive Alliance <2>: Scope

    TEPCO and Chubu Electric to form Comprehensive Alliance <2>: Scope of Comprehensive Alliance 11 Overseas power 䠘Scope of Comprehensive Alliance䠚 generation Gas wholesaling Energy LNG supply infrastructure Thermal power generation (Existing) Receipt and PCO Fuel Transportation storage 42 GW Upstream

16. Slide 16: Sales strategy toward full liberalization of retail power market

    Sales strategy toward full liberalization of retail power market 12 -Toward the scheduled full liberalization of the retail p power market in April p 2016,, we will continue to deploy p y 䇾New services for customers using the company䇻s electricity,䇿 䇾Business expansion in the Tokyo metropolitan area

17. Slide 17: Power generation & Sales outside the Chubu region

    Power generation & Sales outside the Chubu region 13 㻢 -In an effort to reinforce the future profit base, we have been aggressively developing the electric power sales business and power generation business in regions other than Chubu. - We are promoting sales outside the Chubu region by securing a

18. Slide 18: Hamaoka Nuclear Power Station <1>: Safety Enhancement Measures

    Hamaoka Nuclear Power Station <1>: 14 Further effort for Safety Enhancement Measures -Roadmap for Safety enhancement measures Th works The k for f safety f t enhancement h t measures related l t d to t Units U it 4 andd 3 are anticipated ti i t d to t be b completed l t d in i September 2016 and Sep

19. Slide 19: Hamaoka <2>: Review of Compliance with New Regulatory Standards

    Hamaoka Nuclear Power Station <2>: 15 Current Situation about Review of Compliance with New Regulatory Standards As to Unit No.4, the application form for Change in reactor establishment permission that we submitted has been reviewed by the Nuclear Regulation Authority in two separate categories (ma

20. Slide 20: Reference Data (1) Financial Results

    Reference Data (1) Financial Results © 2015 Chubu Electric Power Co., Inc. All rights reserved.

21. Slide 21: Non-consolidated Statements of Income <1>

    Non-consolidated Statements of Income <1> 16 (Billi yen, %) (Billion 2015/2Q 2014/2Q Change (A) (B) (A-B) (A-B)/B [Major factors for Change] Electricity sales revenues 1,225.8 1,261.6 (35.7) (2.8) -A decrease in fuel adjustment charge 䠖 -71.0 -An increase in surcharge for Sold power to other electri

22. Slide 22: Non-consolidated Statements of Income <2>

    Non-consolidated Statements of Income <2> 17 (Billion yen, yen %) 2015/2Q 2014/2Q Change [Major factors for Change] (A) (B) (A-B) (A-B)/B Salaries and 90 7 90.7 90 8 90.8 (0 1) (0.1) (0 2) (0.2) - Thermal : -225.3 225 3 employee benefits A decrease in consumption volume : -38.0 A decrease in fuel pr

23. Slide 23: Non-consolidated Statements of Income <3>

    Non-consolidated Statements of Income <3> 18 (Billion yen, %) [Major factors for Change] 2015/2Q 2014/2Q Change (A) (B) (A-B) (A-B)/B Electricity business 䠖+151.2 Operating income 220.2 63.8 156.4 244.9 Incidental business 䠖 +5.1 N Non-operating ti revenues 73 7.3 70 7.0 03 0.3 47 4.7 Non-operating

24. Slide 24: Consolidated Statements of Income

    Consolidated Statements of Income 19 (Billion yen, yen %) 2015/2Q 2014/2Q Changes (A) (B) (A-B) (A-B)/B Electricity business 1,346.8 1,387.7 (40.9) (2.9) Revenuees Other business 135.0 138.3 (3.3) (2.4) 1,481.8 1,526.0 (44.2) (2.9) Electricity business 217.6 63.4 154.1 242.8 Operating incoome Other

25. Slide 25: Segment Information

    Segment Information 20 (Billion yen,%) yen %) 2015/2Q 2014/2Q Changes (A) (B) (A-B) (A-B)/B El t i it business Electricity b i 1 346 8 1,346.8 1 387 7 1,387.7 (40 9) (40.9) (2 9) (2.9) Other business 135.0 138.3 (3.3) (2.4) Reveenues <E <Energy business> b i > <42 1> <42.1> <54 0> <54.0> <(11 9)> <(

26. Slide 26: Consolidated Financial Standing

    Consolidated Financial Standing 21 -Assets A D Decreased dbby 141 141.88 billi billion yen from f the h end d off FY2014 FY2014, bbecause off a ddecrease iin noncurrent assets ddue to progress in depreciation, and also a decrease in current assets due to a reduction in short-term investment. -Liabil

27. Slide 27: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 㻥22 -Cash C h fl flows ffrom operating i activities. i ii Increased by 79.2 billion yen from the previous year, mainly due to a decrease of fuel cost, affected by the fall of fuel price in spite of a decrease of electricity sales revenues accompanying a decrease

28. Slide 28: Fund Raising

    Fund Raising 23 - Trend of Fund raising results and Outlook for fund raising in FY 2015 -We raised total approximately 1,500 billion yen in long-term funding for 3 years since the shutdown of Hamaoka Nuclear Power Station. Station -We plan to raise approximately 200 billion yen in long-term funding

29. Slide 29: Cash Flow (Non-consolidated)

    Cash Flow (Non-consolidated) 24 (Billion yen) 800.0 Cash Flows from Operating Cash Activities Flows from Operating Activities 608 9 608.9 Cash Flows from Investing Cash Activities Flows from Investingg Activities 563.4 600.0 548.6 556.9 523.6 FCF 522.2 424.1 420.1 443.2 402.6 400 0 400.0 426.0 333.8

30. Slide 30: Electric utility operating expenses (Non-consolidated)

    Electric utility operating expenses(Non-consolidated) 25 䕔Electric El t i utility tilit operating ti expenses䠄Non-consolidated䠅 䠄N lid t d䠅 (Billion Yen) 3,000.0 2,709.7 2,638.2 (6%) 2,457.1 (7%) 2,500.0 2 297 3 2,297.3 (7%) Salaries and 2,136.8 (9%) employee 2,037.3 1,982.9 benefits (9%) 2,000.0 (7

31. Slide 31: Financial Ratio, Credit Ratings

    Financial Ratio, Credit Ratings 26 - Shareholders’ equity ratio - Debt - equity ratio 䠄Times䠅 35% 5 Non-Consolidated N C lid d Non-Consolidated N C lid d Consolidated Consolidated 30% 26.1Ჟ 4 (Non-Consolidasted) 25% 23.5Ჟ 3 20% 2.6 Times (Consolidated) ᲢNon-ConsolidatedᲣ 15% 2 2.1 Times ᲢConsolidate

32. Slide 32: Reference Data (2) Management Information

    Reference Data (2) Management Information © 2015 Chubu Electric Power Co., Inc. All rights reserved.

33. Slide 33: The New Regulatory Standards <1>: Outline

    The New Regulatory Standards<1>: Outline of "the New Regulatory Standards" 27 Compared to the former safety standards, the new regulatory standards have been strengthen the standards to prevent a severe accident, and newly added the standards to cope with a severe accident or a terrorist attack. att

34. Slide 34: The New Regulatory Standards <2>: Influence of 40-years regulation

    The New Regulatory Standards<2>: Influence of 40-years regulation 28 < Article 43, Paragraph 3, Item 32 of the Law for the Regulations of Nuclear Source Material, Nuclear Fuel Material and Reactors> - The h operation i period i d off a power reactor shall h ll be b 40 years from f the h start off op

35. Slide 35: Hamaoka <1>: Submission of Applications for Review

    Hamaoka Nuclear Power Station <1>Ჴ 29 Submission of Applications for Review of Compliance with New Regulatory Standards -On February 14, 2014 , the company has submitted application document for change in reactor establishment permission, an application document for approval of construction plans, a

36. Slide 36: Hamaoka <2>: Earthquake countermeasures

    Hamaoka Nuclear Power Station <2>: 30 [Design basis measures] Earthquake countermeasures - Taking into consideration elements of uncertainty, we have conducted an evaluation of seismic ground motion in relation to inland crustal earthquakes, interplate earthquakes and oceanic intraplate earthquakes,

37. Slide 37: Hamaoka <3>: Tsunami countermeasures

    Hamaoka Nuclear Power Station <3>: 31 [Design basis measures] Tsunami-counter Tsunami counter measures - We have conducted surveys and studies on factors causing huge tsunami, regarding interplate earthquakes, oceanic intraplate earthquakes, earthquakes crustal earthquakes produced by active faults,

38. Slide 38: Hamaoka <4>: Seawater inflow via damaged condenser tubes, Reactor No.5

    Hamaoka Nuclear Power Station <4>: 32 Seawater inflow via damaged tubes in the main condenser for Hamaoka Reactor No.5 Fact - On May 14, 2011, when preparing for cold shutdown after reactor No. 5 was suspended, a portion of the tubes in the main condenser, through which seawater flowed to cool steam

39. Slide 39: Hamaoka <5>: Enhancing anti-disaster measures

    Hamaoka Nuclear Power Station <5>:Enhancing anti-disaster measures 33 -Our anti-disaster measures -In order to prevent abnormal radioactive emissions in the event of an incident at the nuclear power station and to suppress and mitigate the impact in the event of such emissions, we are establishing t

40. Slide 40: Hamaoka <6>: Activities to gain public understanding

    Hamaoka Nuclear Power Station <6>: 34 Activities to g gain public p understanding g - On the Hamaoka Nuclear Power Station, we have been steadily promoting further safety measures including facilities measures and disaster prevention measures together with gaining public understanding as a package.

41. Slide 41: Hamaoka <7>: Location and Regional Area

    Hamaoka Nuclear Power Station <7>: 35 Overview of the Hamaoka Nuclear Power Station Location and Regional Area 50Hz (TEPCO'ss supply area) (TEPCO 䕦 Mt.Fuji Shizuoka 60Hz (CEPCO's supply area) Suruga Kakegawa Bay Enshu-nada sea Kikugawa Makinohara We have signed safety agreement with i h Shizuoka Shi

42. Slide 42: Electricity System Reform <1>: Schedule

    Electricity System Reform <1> : Schedule of the Electricity System Reform 36 - Schedule of the Electricity System Reform schedule for implementing the schedule for enacted the bill measures 1st phase: Establishing the Organization for Cross-regional Established on April 1, 2015 Enacted on November 1

43. Slide 43: Revision of the Gas Business Act

    (Reference) Revision of the Gas Business Act 37 -Revision of the Gas Business Act scheduled for implementing scheduled for enacted the bill the measures Fully Liberalizing the gas retail market into In 2017 which retail entities are able to enter Enacted on June 17, 2015 Legal unbundling of the gas

44. Slide 44: Electricity Power System Reform: Smart Meter

    Electricity Power System Reform : Smart Meter 38 㻝㻡 䕔 The introduction schedule of smart meters - Installation of smart meters has already been completed for our special high-voltage and high-voltage (500 kW and above) customers. - In the case of other high-voltage (less than 500kW) customers, we be

45. Slide 45: Electricity Supply & Demand <1>: Results for Summer FY2015

    Electricity Supply & Demand <1>: Results for Summer FY2015 39 ŠDemand results for summer FY2015 -The efforts of many customers to conserve energy. ăPeak load (one-time peak load) fell by 2,220MW from FY2010 to 24,890MW. One-time peak load Difference Breakdown of Difference FY2015 ((Aug.) g ) ((A)) F

46. Slide 46: Electricity Supply & Demand: Outlook for Winter FY2015

    Electricity Supply & Demand <1>: 40 Outlook for Winter FY 2015 ŠPeak load (three-day average) -We estimate the peak load at 22,570MW taking account of change from the results for winter FY 2014, such as energy gy conservation effect, weather effect and upward p economyy effect, etc. *The effect of c

47. Slide 47: Electricity Supply & Demand <3>: Outlook for Summer in Japan

    Electricity Supply & Demand <3>: Outlook of Electricity Supply and Demand for Summer (January 2016) in Japan 41 29 (GW) West Japan 100 10.0% (4.95) Hokkaido 80 8.0% 60 6.0% 40 4.0% (1.40) (1.08) (0.87) 20 (0.84) 2.0% (0.38) (0.38) 0 0.0% ɶᢿ Kansai Chubu ᧙ᙱ Hokuriku ҅ᨕ Chugoku ɶ‫׎‬ ׄ‫׎‬ Shikoku ʋ߸ Ky

48. Slide 48: Electricity Supply & Demand <4>: Strengthen Mutual Support

    Electricity Supply & Demand <4>: 䠍 Strengthen Mutual Support among Power Companies 42 䕔 Reinforcement of the FC (Frequency Converter) Hokkaido-Honshu To Hokkaido 600MW - To reinforce 900MW FC capacity by FY 2020 (from To Tohoku 600MW 1,200MW to 2,100 MW) . (to reinforce 300MW - Furthermore, to incre

49. Slide 49: Electricity Supply & Demand <5>: Composition of Power Sources

    Electricity Supply & Demand <5>: 43 Composition p of Power Sources and Electric Power Output p - Composition of Power Sources ᲢGWᲣ 0 5 10 15 20 25 30 35 40 FY2010 12% 13% 41% 15% 19% FY2011 41% 12% 13% 15% 19% FY2012 11% 12% 43% 15% 19% FY2013 11% 13% 45% 12% 19% FY2014 Ƃ37᳁Wƃ 11% 12% 46% 12% 19% N

50. Slide 50: Electricity Supply & Demand <6>: Trend of Large Industrial Power

    Electricity Supply & Demand <6>: 㻥 44 Trend of Large Industrial Power -Dropped 0.3% , compared with 2Q of FY2014, due to a decrease of production in the automobile industry etc, in spite of increase in production of semiconductor.. -Sales Volume of Large Industrial Power FY2015 Ɔ%Ƈ <2Q> Electricity

51. Slide 51: Reinforcement Plan for LNG Handling Facilities

    Reinforcement Plan for LNG Handling Facilities 45 㻝㻢 - Supporting stable yet flexible LNG procurement 䐣Installation of new gas pipeline 䐟Additional LNG tanks & reinforcement to LNG 䐠 s o oof ggass 䐠Installation receiving dock Shin-Nagoya pipeline across Ise Bay 䐢Installation of ( for Toho Gas Co.) N

52. Slide 52: Fuel Procurement <1>: Outlook for Fuel Procurement in FY2015

    Fuel Procurement<1>:Outlook for Fuel Procurement in FY2015 46 - Outlook for fuel procurement (LNG) - After the suspension of all the units of Hamaoka Nuclear Power Station, the Company has increased the utilization of thermal power plants, mostly LNG, to compensate for the loss of power output by nu

53. Slide 53: Fuel Procurement <2>: LNG Contracts

    Fuel Procurement<2>: LNG Contracts 47 - Principal LNG Contracts (1,000 t/year) Contract volume Projects / <delivery> Period of contract (approximate figure) Q Qatar1 / <Ex-ship> p 1997 - 2021 ((approx.25 pp years) y ) 4,000 , Australia (extension) / <Ex-ship> 2009 - 2016 (approx.7 years) 500 Austral

54. Slide 54: Fuel Procurement <3>: LNG Ship Charter

    Fuel Procurement<3>: LNG Ship Charter 48 39 ŠLNG Ship Charter - Based on the FOB contract, we concluded eight contracts of LNG ship charter to enhance efficiency and flexibility of procurement by managing freight charge. October 1,2015, JERA succeeded to stocks of ship owners. 1st Ship (Seishu-maru)

55. Slide 55: Fuel Procurement <4>: Advancement of Coal Trading

    Fuel Procurement<4>: Advancement of Coal Trading 49 - Coal trading business -Chubu Electric and Electricite de France’s subsidiary EDFT each established 100% subsidiaries in Japan and started fuel trading business under partnership agreement in FY2008. -Effective in April, 2010, Chubu Energy Trading

56. Slide 56: Fuel Procurement <5>: Acquisition of Interests in Energy Resources

    Fuel Procurement<5> 50 Acquisition of Interests in Energy Resources - Acquisition of upstream interests, etc.ೌ Cordova Embayment ႩƷӕࢽཞඞƳƲ] Ichthys (Shale gas) (LNG) Project output capacity: Approx 3.5 million ton/year in LNG Project output capacity: (planned value) Approx 8.9 million ton/year Intere

57. Slide 57: Fuel Procurement <6>: Results of FY2014

    Fuel Procurement<6> Results of FY2014 51 Others 3.2 Canada Russia 1.8 R ssia Russia 47 4.7 3.3 (%) Africa 10 5 10.5 Australia LNG Coal 11.4 Qatar Australia Indonesia (13 485mil t) (13.485mil.t) 55.0 43 0 43.0 Ტ10 552mil tᲣ Ტ10.552mil.tᲣ 51 9 51.9 Asia 15.2 Vietnam 19.3 Crude oil Ტ228,000klᲣ Indonesi

58. Slide 58: Renewable Energy <1>: Feed-in Tariff Scheme

    Renewable Energy <1>䠖Feed-in Tariff Scheme 52 - Basic framework of feed-in tariff scheme for renewable energy Purchase Electric Supply Power Punrchased power Equivalent to the purchased costs of renewable energy sourced Company Electricity sales revenues Equivalent to the surcharge for Operators p o

59. Slide 59: Renewable Energy <2>: Our efforts toward Promotion

    Renewable Energy <2> : Our efforts toward Promotion 53 㻝㻡 - Details for p promotion of renewable energy gy Detailed plans Output (MW) Operation commences Mega Solar Iida 1 FY 2010 Solar Mega Solar Kawagoe Chubu Electric 7.5 FY2017 (Plan) (Transfer from Mega Solar Taketoyo) Mega Solar Shimizu 8 FY 20

60. Slide 60: Renewable Energy <3>: Status of Renewable Energy Initiatives

    54 Renewable Energy <3> : Status of Renewable Energy Initiatives 㻝㻡 ŠStatus of Renewable Energy Initiatives (Chubu Electric Power Group) ƂContract demand (Solar, Wind)ƃ ƂThe number of contracts (Solar)ƃ (MW) FY2010 FY2011 FY2012 FY2013 FY2014 4,000 The number of contracts 128,000 178,000 237,000 310

61. Slide 61: Renewable Energy <4>: Grid Connection Application Volume

    Renewable Energy <4>: 55 㻝㻡 The situation of application volume associated with connection ŠThe situation of application volume associated with connection of renewable energy generation facilities to grid - Total electric volume of interconnected inverters plus application volume for connection to r

62. Slide 62: Sales Strategy <1>: New services for customers

    Sales Strategy <1>Ჴ 56 㻢 New services for customers using the company's electricity - We will create attractive and competitive services, deliver valuable services worth more than the price (including safe, stable, and affordable energy services) to meet the needs of customers, and also meet custome

63. Slide 63: Sales Strategy <2>: Evolve into a Total Service Corporation

    Sales Strategy <2>:Evolve into a Total Service Corporation 57 㻢 - Supplying S l i Gas, G LNG and d On-Site O Sit E Energy Collaborating with C Energy fully acquired, the Chubu Electric Group continues to offer energy services that combine gas, LNG and on-site energy to business customers. We support

64. Slide 64: Sales Strategy <3>: Agreement with INPEX on Joint Power Supply

    Sales Strategy䠘3䠚䠖 58 Chubu Electric and INPEX Enter Agreement g on Joint Power Supply pp y Business Chubu Electric, Chubu Electric subsidiary Diamond Power Corporation(DPC) and INPEX have g entered a heads of agreement to consider a jjoint business operation p to supply pp y electricity. y Heads of

65. Slide 65: Overseas Business Deployment

    Overseas Business Deployment 59 - Outline of overseas business Investment amount Output based on Chubu's stake* (approximate) At the end of October 2015 Cumulative total 120 billion yen Cumulative total 3,290 MW * represents t Chubu's Ch b ' stake t k in i total t t l output t t off whole h l projec

66. Slide 66: Comprehensive Alliance <1>: Business Vision

    TEPCO and Chubu Electric to form Comprehensive Alliance <1>:Business Vision 60 -Based on the Comprehensive Alliance, we expect to create profitable opportunities by expanding of business area. -In I addition, ddi i we expect to improve i competitiveness ii by b optimizing i i i the h supply l chain

67. Slide 67: Comprehensive Alliance <2>: Expansion of Overseas Power Generation

    TEPCO and Chubu Electric to form Comprehensive Alliance <2> 㻦 Expansion of Overseas Power Generation projects ࠥOverseas IPP projects area of the two companiesࠥ 61 - We can expect complementary relationship because we have overseas IPP projects in different area. TEPCO Chubu Electric Region Country O

68. Slide 68: Efforts toward Promotion of Management Efficiency

    Efforts toward Promotion of Management Efficiency 62 - In addition to improving management efficiency as reflected in the authorized cost for electricity charges, we have been working to further improve management efficiency for each business operation and expense. In FY2015,, the cost reduction equ

69. Slide 69: Disclaimer

    DISCLAIMER This presentation Thi t ti contains t i assumptions ti andd forward-looking f d l ki statements t t t with ith respect to the financial conditions, and forecasts of the company, which are based on information currently available. These assumptions involve certain risks and uncertainties,

Chubu Electric Power — 2Q FY2015 Earnings Presentation on 6ix