Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q2 FY2021 Earnings Presentation

47 slides from Tokyo Electric Power's earnings presentation, Oct 27, 2021

1. Slide 1: FY2021 2nd Quarter Financial Results (April 1 – September 30, 2021)

   FY2021 2nd Quarter Financial Results (April 1 – September 30, 2021) 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 FY2021 2nd Quarter Financial Results

   Overview of FY2021 2nd Quarter Financial Results (Released on October 27, 2021) 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 FY2021 2nd Quarter Financial Results

   Key Points of FY2021 2nd Quarter Financial Results 1 <FY2021 2nd Quarter Financial Results>  Operating revenue decreased due to decreases in the volume of electricity sold and fuel cost adjustments, and the application for the new accounting standards.  Ordinary income/loss and quarterly net incom

5. Slide 5: 1. Consolidated Financial Results

   1. Consolidated Financial Results 2 (Unit: Billion kWh) FY2021 FY2020 Comparison Apr-Sep (A) Apr-Sep (B) (A)-(B) (A)/(B) (% ) Total Electricity Sales Volume 113.3 111.4 1.9 101.7 Retail Electricity Sales Volume ※1 91.1 102.6 -11.5 88.8 Wholesale Electricity Sales Volume ※2 22.2 8.8 13.4 252.3 (Unit:

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

   (Reference)Key Factors Affecting Performance 3 Area demand (Unit: Billion ｋWh) FY2021 FY2020 Comparison Apr-Sep(A) Apr-Sep(B) (A)-(B) (A)/(B) (%) Area demand 130.0 131.3 -1.3 99.0 Foreign Exchange Rate/CIF FY2021 FY2020 (A)-(B) Apr-Sep(A) Apr-Sep(B) Foreign Exchange rate (Interbank,yen/dollar) 109.8

7. Slide 7: 2. Points of Each Companies

   2. Points of Each Companies 4 <TEPCO Holdings>  Ordinary income increased due to an increase in received dividends from core operating companies, etc. <TEPCO Fuel & Power>  Ordinary income decreased due to a negative turn in the effects of the time-lag from the fuel cost adjustment system at JERA

8. Slide 8: 3. Overview of Each Company

   3. Overview of Each Company 5 (Unit: Billion Yen) FY2021 FY2020 Comparison Apr-Sep(A) Apr-Sep (B) (A)-(B) (A)/(B) (% ) Operating Revenue 2,210.7 2,834.2 -623.4 78.0 TEPCO Holdings 239.7 267.9 -28.1 89.5 TEPCO Fuel & Power 2.6 3.8 -1.2 66.8 TEPCO Power Grid 866.2 862.8 3.3 100.4 TEPCO Energy Partner

9. Slide 9: 4. Consolidated Extraordinary Income/Loss

   4. Consolidated Extraordinary Income/Loss 6 (Unit: Billion Yen) FY2021 FY2020 Comparison Apr-Sep(A) Apr-Sep(B) (A)-(B) Extraordinary Income 29.8 - 29.8 Grants-in-Aid from the Nudear Damage Compensation and Decommissioning Facilities Corporation ※1 29.8 - 29.8 Extraordinary Loss 29.8 67.7 -37.8 Expen

10. Slide 10: 5. Consolidated Financial Position

    5. Consolidated Financial Position 7  Total assets balance Increased by 518.9 billion yen due mainly to an increase in cash and deposits.  Total liabilities balance increased by 389.2 billion yen due mainly to an increase in corporate bonds.  Total net assets balance increased by 129.6 billion ye

11. Slide 11: 6. FY2021 Consolidated Performance Forecast

    6. FY2021 Consolidated Performance Forecast 8  Performance forecast has been revised as shown below due to a negative turn in the effect of the time-lag from the fuel cost adjustment system amid rising fuel prices. (Unit: Billion yen) FY2021 Projection FY2021 Projectin (released on Oct. 27,2021) (r

12. Slide 12: (Reference) FY2021 Consolidated Performance Forecast (Key Factors Affecting Performance)

    (Reference) FY2021 Consolidated Performance Forecast (Key Factors Affecting Performance) 9 (Unit: Billion yen) FY2021 Projection FY2021 Projectin FY2020 Results (released on Oct. 27,2021) (released on Jul. 29,2021) Total Electricity sales volume 222.0 213.0 231.5 Retail Electricity sales volume 183.

13. Slide 13: (Reference) Consolidated Year-on-Year performance comparison ① Increases/Decreases chart

    (Reference) Consolidated Year-on-Year performance comparison ① ~Increases/Decreases chart~ 10 Power supply and demand, Ordinary income/loss and transmission revenue -87.1 Others -36.3 (Units: Billion Yen) Related to sales(After deduct renewable energy ) Related to Area demand Decrease in Profit: 123

14. Slide 14: (Reference) Consolidated Year-on-Year performance comparison ② Figures

    (Reference) Consolidated Year-on-Year performance comparison ② ~Figures~ 11 （Units: Billion yen) FY2021 FY2020 (A)-(B) Apr-Sep (A) Apr-Sep (B) Ordinary Income 101.3 224.8 -123.4 Power supply and demand, and 897.0 984.1 -87.1 transmission revenue Retail electricity sales ※1 1,017.9 1,221.9 -203.9 Who

15. Slide 15: (Reference) Year-on-Year Comparisons for TEPCO Holdings

    (Reference) Year-on-Year Comparisons for TEPCO Holdings 12 Ordinary income/loss Profit Structure (Units: Billion Yen) Profit is dividend income, decommissioning charges Decrease in profit, management consultation fees, wholesale wholesale power sales of nuclear power, etc. power sales -48.0 Increase

16. Slide 16: (Reference) Year-on-Year Comparisons for TEPCO Fuel & Power

    (Reference) Year-on-Year Comparisons for TEPCO Fuel & Power 13 Ordinary income/loss Profit Structure (Units: Billion Yen) Main profit is profit of entities accounted for using Improvement of equity method, such as generation business at other income and expenditure JERA. +34.8 Impact Timing Impact (

17. Slide 17: (Reference) Year-on-Year Comparisons for TEPCO Power Grid

    (Reference) Year-on-Year Comparisons for TEPCO Power Grid 14 Ordinary income/loss Profit Structure (Units: Billion Yen) Operating revenue is mainly transmission revenue, and this is fluctuated by area demand. Decrease in Expenses is mainly for repairs and depreciation costs of transmission transmiss

18. Slide 18: (Reference) Year-on-Year Comparisons for TEPCO Energy Partner

    (Reference) Year-on-Year Comparisons for TEPCO Energy Partner 15 Ordinary income/loss Profit Structure (Units: Billion Yen) Operating revenue is mainly electricity sales revenue, and this is fluctuated by electricity sales volume. Year-on-Year Expenses are mainly power purchasing costs and transmiss

19. Slide 19: (Reference) Year-on-Year Comparisons for TEPCO Renewable Power

    (Reference) Year-on-Year Comparisons for TEPCO Renewable Power 16 Ordinary income/loss (Units: Billion Yen) Profit Structure Profit is mainly wholesale power sales of hydroelectric and Increase in new energies. Wholesales, etc Increase in Expenses is mainly for depreciation and repairs. property tax

20. Slide 20: (Reference) Application of new accounting standards

    (Reference)Application of new accounting standards 17  “Accounting standards for revenue recognition” went into effect in FY2021 and some transactions that were posted as revenue (sales) must now be listed in a different category (changes were also made to what can be posted as expenses so there wa

21. Slide 21: (Reference) Factors for fluctuating consolidated revenue

    (Reference) Factors for fluctuating consolidated revenue 18 ～The impact of application for new accounting standards～  Operating revenue decreased by 533.3 billion yen as a result of the application for new accounting standards (no impact on revenue and expenditures since expenses decreased) Operati

22. Slide 22: (Reference) FY2021 Consolidated Performance Forecast (Overview of Each Company)

    (Reference) FY2021 Consolidated Performance Forecast (Overview of Each Company ) 19 (Units: Billion Yen) FY2021 Projection FY2021 Projectin (released on Oct. 27,2021) (released on Jul. 29,2021) (A)-(B) (A) (B) Operating Revenu e 4,850.0 4,484.0 366.0 TEPCO Holdings 620.0 635.0 -15.0 TEPCO Fuel & Pow

23. Slide 23: Supplemental Material

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

24. Slide 24: Table of Contents

    Table of Contents Financial Results Detailed Information Series of efforts including physical protection Consolidated Statements of Income 20 Improvement action plan for the nuclear material protection incidents The status of Grants–in-aid from Nuclear Damage Compensation and 21 Assumptions underlyi

25. Slide 25: FY2021 2nd Quarter Financial Results Detailed Information

    FY2021 2nd Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

26. Slide 26: Consolidated Statements of Income

    20 Consolidated Statements of Income (Unit: Billion Yen) FY2021 FY2020 Comparison Apr-Sep(A) Apr-Sep(B) (A)-(B) (A)/(B) (%) Operating Revenue 2,210.7 2,834.2 -623.4 78.0 Operating Expenses 2,113.7 2,652.8 -539.0 79.7 Operating Income / Loss 97.0 181.3 -84.3 53.5 Non-operating Revenue 31.9 68.4 -36.4

27. Slide 27: Grants-in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation and Expenses

    The status of Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation and Expenses for Nuclear Damage Compensation 21 (Unit: Billion Yen) FY2021 Cumulative Item FY2010 to FY2020 Apr-Sep Amount ◇Grants–in-aid from Nuclear Damage Compensation and Decommissioning Fac

28. Slide 28: Consolidated Balance Sheets

    Consolidated Balance Sheets 22 (Unit: Billion Yen) <Interest-bearing debt outstanding> (Unit: Billion Yen) Sep. 30 Mar. 31 Comparison Sep. 30 Mar. 31 (A)-(B) 2021 (A) 2021 (B) (A)-(B) (A)/(B) (%) 2021 (A) 2021 (B) Total Assets 12,612.0 12,093.1 518.9 104.3 Bonds 3,155.4 2,705.4 450.0 Long-term Debt

29. Slide 29: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 23 (Unit: Billion Yen) FY2021 FY2020 Comparison Apr-Sep (A) Apr-Sep(B) (A)-(B) Cash flow from operating activities 96.2 14.5 81.7 Income / loss before income taxes 101.2 156.7 -55.5 Depreciation and amortization 207.3 205.0 2.3 Increase (decrease) in decommissio

30. Slide 30: Overview of Consolidated Cash Flows

    Overview of Consolidated Cash Flows - Year on Year Comparison 24 Cash and cash equivalents as of September 30, 2021 increased 526.9 billion yen to 981.2 billion yen. - Cash flow from operating activities increased 96.2 billion yen mainly due to income before income taxes - Cash flow from investing a

31. Slide 31: Key Factors Affecting Performance

    Key Factors Affecting Performance 25 ※１ Total of EP consolidated (EP/TCS/PinT) and PG (islands, etc.) 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 Generation)

32. Slide 32: Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated

    Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated 26 Retail Electricity Sales Volume（EP consolidated） Unit: Billion kWh FY2021 Apr-Jun Jul Aug Sep Jul-Sep Apr-Sep Lighting 12.89 4.34 5.49 5.06 14.89 27.78 Power 29.60 11.16 11.71 10.79 33.67 63.27 Total 42.49 15.50 17.20

33. Slide 33: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 27 (Billion Yen) Amount at Maturity (As of Sep. 30, 2021) TEPCO Public Bond TEPCO Power Grid Public Bond TEPCO Renewable Power Public Bond (FY) Note: The amount redeemed for Apr. - Sep. of fiscal 2021 totaled 30.0 billion yen. ©Tokyo Electric Power Company Holdin

34. Slide 34: Series of efforts including physical protection

    Series of efforts including physical protection ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

35. Slide 35: Improvement action plan for the nuclear material protection incidents

    Improvement action plan for the nuclear material protection incidents Assumptions underlying the plan 28  On September 22, 2021, TEPCO submitted a report summarizing the results of the causal analysis and improvement measures for the unauthorized ID card use and the partial loss of function of nucl

36. Slide 36: Improvement action plan: Major measures

    Improvement action plan for the nuclear material protection incidents Major measures 29  Measures for the addressing the three root causes, measures to foster a strong culture, and measures to address individual causal factors will be implemented based on the improvement measures plan. We will also

37. Slide 37: Status of general inspections after discovering partially incomplete safety measure renovations

    Status of general inspections implemented after discovering partially incomplete safety measure renovations 30  The reform team established in light of the partially incomplete safety measures renovations is conducting general inspections for not only the incomplete renovations but for the followin

38. Slide 38: 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.

39. Slide 39: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 31  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 informa

40. Slide 40: Milestones of the 5th revision of Mid-and-Long-Term Roadmap

    Milestones of the 5th revision of Mid-and-Long-Term Roadmap(December 2019) 32 To be delayed by around a year Maintain Overall Framework of Decommissioning Schedule due to the effects of COVID-19 30 ～ 40 years after cold Dec. 2011 Nov. 2013 Dec. 2021 End of 2031 shutdown Phase 1 Phase 2 Phase 3-(1) P

41. Slide 41: Fuel Debris Retrieval Schedule and Process

    Fuel Debris Retrieval Schedule and Process Based upon the Mid-to-Long Term Decommissioning Implementation Plan 2021 33  On March 25, 2021, the Mid-and-Long Term Decommissioning Action Plan 2021 was published, an updated version of the Mid-and- Long Term Decommissioning Action Plan 2020 given the re

42. Slide 42: Contaminated water measures

    Contaminated water measures 34  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 （１）３つの基本方針に従った汚染水対策の推進に関する取り組み policies ①

43. Slide 43: TEPCO Holdings' Response Regarding the Handling of ALPS Treated Water – 1

    TEPCO Holdings’ Response Regarding the Handling of ALPS Treated Water – 1 TEPCO Holdings’ Approach to the Discharge of ALPS Treated Water 35  The “Basic Policy on handling of ALPS treated water at the Tokyo Electric Power Company Holdings’ Fukushima Daiichi Nuclear Power Station” (hereinafter gover

44. Slide 44: TEPCO's Response on the Handling of ALPS Treated Water – Status of Review

    TEPCO’s Response on the Handling of ALPS Treated Water – 2 Status of Review Regarding Design and Operation of Necessary Facilities 36  In August 2021, TEPCO released status of review regarding the handling of ALPS treated water at the Fukushima Daiichi NPS.  Ensure that radioactive materials other

45. Slide 45: Other Initiatives

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

46. Slide 46: Main Efforts to Increase Corporate Value-1

    Main Efforts to Increase Corporate Value-1 37 <TEPCO Holdings> July 21, 2021 The TEPCO Group Management Philosophy was updated to address the changes in society including the global trend toward carbon neutrality, increased interest in sustainable development goals (SDGs), and the need to secure ele

47. Slide 47: Main Efforts to Increase Corporate Value-2

    Main Efforts to Increase Corporate Value-2 38 <TEPCO Energy Partner> July 20, 2021 Together with Kobe University, Japan Airport Terminal Co., Ltd., and Japan Facility Solutions Inc., TEPCO Energy Partners started demonstrations to measure effectiveness of the air purification unit “Virus Free Air” i

Tokyo Electric Power Company Holdings — Q2 FY2021 Earnings Presentation on 6ix