Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q2 FY2014 Earnings Presentation

41 slides from Tokyo Electric Power's earnings presentation, Oct 31, 2014

  1. Slide 1: FY2014 2nd Quarter Earnings Results

    FY2014 2nd Quarter Earnings Results (April 1 – September 30, 2014) Presentation Material Tokyo Electric Power Company October 31, 2014 © 2014 Tokyo Electric Power Company, Inc. All Rights Reserved.

  2. Slide 2: Regarding Forward-Looking Statements

    Regarding Forward-Looking Statements Certain statements in the following presentation regarding Tokyo Electric Power Company’s business operations may constitute “forward-looking statements.” As such, these statements are not historical facts but rather predictions about the future, which inherently

  3. Slide 3: I. Overview of FY2014 2nd Quarter Earnings Results

    I. Overview of FY2014 2nd Quarter Earnings Results © 2014 Tokyo Electric Power Company, Inc. All Rights Reserved.

  4. Slide 4: Key Points of FY2014 2nd Quarter Earnings Results

    Key Points of FY2014 2nd Quarter Earnings Results 1 Overview - Both consolidated and non-consolidated operating revenues increased due to an increase in the unit electricity sales price resulting from the fuel cost adjustments, etc. - Ordinary income recorded a profit on each of consolidated and non

  5. Slide 5: Earnings Results Summary (Consolidated and Non-Consolidated)

    FY2014 2nd Quarter Earnings Results Summary (Consolidated and Non-Consolidated) 2 (Upper and lower rows show consolidated and non-consolidated figures, respectively.) (Unit: Billion Yen) FY2014 (A) FY2013 (B) Comparison First Half First Half (A)-(B) (A)/(B)(%) consolidated 3,334.1 3,216.1 118.0 103.

  6. Slide 6: Electricity Sales Volume, Total Power Generated and Purchased

    FY2014 2nd Quarter 3 Electricity Sales Volume, Total Power Generated and Purchased (Units: Billion kWh, %) Full-year Outlook FY2014 Electricity Sales Volume for FY2014 1st 2nd Latest Projection 1st Half Quarter Quarter Projection (As of Jul. 31) 21.56 24.71 46.27 102.73 102.49 Regulated segment [FY2

  7. Slide 7: Comparison with the Previous Fiscal Year Results

    FY2014 2nd Quarter Comparison with the Previous Fiscal Year Results 4 (Unit: Billion Yen) FY2014 First Half Actual (A) FY2013 First Half Actual (B) Comparison (A)-(B) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Operating Revenues 3,334.1 3,259.5 3,216.1

  8. Slide 8: Financial Impact of the Great East Japan Earthquake [Extraordinary Income/Loss]

    FY2014 2nd Quarter Financial Impact of the Great East Japan Earthquake [Extraordinary Income/Loss] 5 Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation [Extraordinary Income] (Unit: billion yen) FY2014 Cumulative Item FY 2010 to FY2012 FY2013 Amount First Qua

  9. Slide 9: FY2014 Business Performance Outlook [Full Year]

    FY2014 Business Performance Outlook [Full Year] - Key Factors Affecting Performance and Financial Impact 6 FY2014 Key Factors Affecting Performance First Half Full-year Projection Actual (As of Oct. 31) (As of Jul. 31) Electricity Sales Volume (billion kWh) 126.8 263.9 265.8 Crude Oil Prices (All Ja

  10. Slide 10: [Reference] Fuel Consumption and Procurement

    [Reference] Fuel Consumption and Procurement 7 Fuel Consumption Data and Projection FY2014 Full-year Outlook 【Reference】 FY2011 FY2012 FY2013 FY2014 1st Half FY2013 1st Half Actual Actual Actual New Previous Actual Actual LNG(million tons) 22.88 23.71 23.78 ー ー 11.37 11.72 Oil (million kｌ) 8.08 10.5

  11. Slide 11: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 8 <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 Busines

  12. Slide 12: Establishment of the Productivity Doubling Committee

    Establishment of the “Productivity Doubling Committee” 9 − On September 4, 2014, “Productivity Doubling Committee” was established to proceed to further implementation of cost reduction measures including emergency cost deferral. − This Committee, led by TEPCO Chairman Fumio Sudo, consists of TEPCO

  13. Slide 13: Efforts towards Nuclear Reform - Status of the Nuclear Safety Reform Plan

    Efforts towards Nuclear Reform - 1 Report on status of the Nuclear Safety Reform Plan 10 - The “Reassessment of Fukushima Nuclear Accident and Nuclear Safety Reform Plan” (the “Reform Plan”) formulated by TEPCO’s Nuclear Reform Special Task Force was announced through the resolution of the Board of

  14. Slide 14: Efforts towards Nuclear Reform - Framework for Nuclear Reform

    Efforts towards Nuclear Reform - 2 [Reference] Framework for Nuclear Reform 11 - On September 11, 2012, TEPCO established the Nuclear Reform Monitoring Committee *1 as advisory body to the Board of Directors, along with the Nuclear Reform Special Task Force*2 to be led by the President for the purpo

  15. Slide 15: II. FY2014 2nd Quarter Earnings Results (Detailed Information)

    II. FY2014 2nd Quarter Earnings Results (Detailed Information) © 2014 Tokyo Electric Power Company, Inc. All Rights Reserved.

  16. Slide 16: Statements of Income (Consolidated)

    Statements of Income (Consolidated) 12 (Unit: Billion yen) FY2014 (A) FY2013 (B) Comparison First Half First Half (A)-(B) (A)/(B) (%) Operating Revenues 3,334.1 3,216.1 118.0 103.7 Operating Expenses 3,050.8 3,048.9 1.9 100.1 Operating Income 283.3 167.2 116.0 169.4 Non-operating Revenues 31.0 39.0

  17. Slide 17: Breakdown of Revenue, etc. (Non-Consolidated)

    Breakdown of Revenue, etc. (Non-Consolidated) 13 (Unit: Billion yen) FY2014 (A) FY2013 (B) Comparison First Half First Half (A)-(B) (A)/(B) (%) Ordinary Revenues 3,279.6 3,152.4 127.2 104.0 Operating Revenues 3,259.5 3,126.5 132.9 104.3 Operating Revenues from Electric Power Business 3,201.8 3,067.6

  18. Slide 18: Breakdown of Expenses, etc (Non-Consolidated)

    Breakdown of Expenses, etc (Non-Consolidated) 14 (Unit: Billion yen) FY2014 (A) FY2013 (B) Comparison First Half First Half (A)-(B) (A)/(B) (%) Ordinary Expenses 3,065.0 3,040.3 24.6 100.8 Operating Expenses 2,994.3 2,978.1 16.1 100.5 Operating Expenses for Electric Power Business 2,942.9 2,923.0 19

  19. Slide 19: Year-on-Year Comparison of Ordinary Expenses, etc (Non-Consolidated) - 1

    Year-on-Year Comparison of Ordinary Expenses, etc (Non-Consolidated) - 1 15 Personnel expenses (¥166.0 billion to ¥185.6 billion) +¥19.6 billion Salary and benefits (¥122.5 billion to ¥130.9 billion) +¥8.4 billion Retirement benefits (¥8.0 billion to ¥19.9 billion) +¥11.9 billion Amortization of act

  20. Slide 20: Year-on-Year Comparison of Ordinary Expenses, etc (Non-Consolidated) - 2

    Year-on-Year Comparison of Ordinary Expenses, etc (Non-Consolidated) - 2 16 Maintenance expenses (¥121.6 billion to ¥129.6 billion) +¥8.0 billion Generation facilities (¥40.3 billion to ¥50.1 billion) +¥9.8 billion Hydroelectric power (¥3.5 billion to ¥3.5 billion) +¥0.0 billion Thermal power (¥31.8

  21. Slide 21: Year-on-Year Comparison of Ordinary Expenses, etc (Non-Consolidated) - 3

    Year-on-Year Comparison of Ordinary Expenses, etc (Non-Consolidated) - 3 17 Power purchasing costs (¥470.4 billion to ¥492.0 billion) +¥21.6 billion Power purchased from other utilities (¥107.8 billion to ¥101.7 billion) Main Factors for Increase/Decrease -¥6.0 billion Power purchased from other sup

  22. Slide 22: Balance Sheets (Consolidated and Non-Consolidated)

    Balance Sheets (Consolidated and Non-Consolidated) 18 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Sep. 30 Mar. 31 Comparison 2014 (A) 2014 (B) (A)-(B) (A)/(B) (%) (Consolidated) 14,276.7 14,801.1 -524.3 96.5 Total Assets (Non-consolidated)

  23. Slide 23: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 19 (Unit: Billion yen) FY2014 (A) FY2013 (B) Comparison First Half First Half (A)-(B) Cash flow from operating activities 313.2 116.2 197.0 Income / loss before income taxes and minority interests 309.1 629.4 -320.2 Depreciation and amortization 314.1 322.1 -7.9

  24. Slide 24: [Reference] Schedules for Corporate Bond Redemption (Non-consolidated)

    [Reference] Schedules for Corporate Bond Redemption (Non-consolidated) 20 (Billion yen) Amount at Maturity (As of September 30, 2014) 1,400 1,299.8 Foreign currency-denominated bond 1,200 Domestic (Private bond) Domestic (Public bond) 1,000 *1 Foreign currency-denominated bond (Breakdown) 673.9* 2 *

  25. Slide 25: Segment Information

    Segment Information 21 (Unit: Billion yen) FY2014 (A) FY2013 (B) Comparison First Half First Half (A) - (B) (A)/(B) (% ) Operating Revenues 3,334.1 3,216.1 118.0 103.7 1,698.6 1,614.3 84.2 105.2 Fuel & Power Company 49.8 57.4 -7.6 86.7 779.9 809.8 -29.8 96.3 Power Grid Company 59.1 53.2 5.9 111.1 3,

  26. Slide 26: [Reference] Seasonal Breakdown of Electricity Sales

    [Reference] Seasonal Breakdown of Electricity Sales - Sales Volume, Total Power 22 Generated and Purchased (Units: Billion kWh, %) FY2013 FY2014 Electricity Sales Volume 1st Half 2nd Half Full year Apr. May Jun. Jul. Aug. Sep. 1st Half 48.84 56.24 105.08 8.01 7.21 6.35 7.66 9.45 7.60 46.27 Regulated

  27. Slide 27: [Reference] Recent Demand Trend of Large-Scale Industries

    [Reference] Recent Demand Trend of Large-Scale Industries 23 - Electricity sales volume to large-scale industrial customers in the first half of fiscal 2014 decreased 1.7% due to decrease year- on-year sales growth in industries such as Paper & pulp, Chemicals, Ceramics & stone and Machinery. [Year-

  28. Slide 28: [Reference] Historical Prices of CIF Crude Oil, Fuel Coal and LNG

    [Reference] Historical Prices of CIF Crude Oil, Fuel Coal and LNG 24 (＄/b･t) (＄/t) 160 1,000 900 140 800 120 700 100 600 80 500 400 60 Crude Oil Fuel Coal 300 40 LNG (Right-hand Scale) 200 20 100 0 0 Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul 2010 2011 2012 2013 2014 Not

  29. Slide 29: [Reference] The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives

    [Reference] The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives © 2014 Tokyo Electric Power Company, Inc. All Rights Reserved.

  30. Slide 30: Current Situation and Status of Fukushima Daiichi Nuclear Power Station

    Current Situation and Status of Fukushima Daiichi Nuclear Power Station 25 - At Units 1, 2 and 3, we continue water-cooling operations for their reactors and the temperatures of the reactors have been kept around 25 to 35 degrees centigrade. - There was no significant change in the density of radioa

  31. Slide 31: Overview of the Mid-to-long Term Roadmap towards Decommissioning (1)

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4 (1) 26 - TEPCO released "Mid-to-long Term Roadmap" towards the decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4 on December 21, 2011 (revised

  32. Slide 32: Overview of the Mid-to-long Term Roadmap towards Decommissioning (2)

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4 (2) 27 <Schedules for removal of fuel and fuel debris of each unit> Fuel removal (Spent fuel pools) Fuel debris removal (Reactors) Unit 1 (Earliest plan) Second half of F

  33. Slide 33: Countermeasures for contaminated water problem at Fukushima Daiichi

    Countermeasures for contaminated water problem at Fukushima Daiichi Nuclear Power Station 28 - The Nuclear Disaster Response Headquarters of the government has established the “Basic policy on the contaminated water issues at Fukushima Daiichi Nuclear Power Station of Tokyo Electric Power Company” o

  34. Slide 34: Our Commitment to Nuclear Damage Compensation

    Our Commitment to Nuclear Damage Compensation 29 - 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 released in Augu

  35. Slide 35: Framework of Decontamination Works

    Framework of Decontamination Works 30 - The Act on Special Measures Concerning the Handling of Radioactive Pollution (the “Act”) was enacted in August 2011 and fully came into force on January 1, 2012. The Act showed as follows; (1) The national and the local governments shall develop their decontam

  36. Slide 36: Compensation Support by Nuclear Damage Compensation and Decommissioning Facilitation Corporation

    Compensation Support by Nuclear Damage Compensation and Decommissioning 31 Facilitation Corporation - 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

  37. Slide 37: The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    [Reference] The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives © 2014 Tokyo Electric Power Company, Inc. All Rights Reserved.

  38. Slide 38: Main Measures to Secure Safety - 1 [Outline]

    Efforts after the Tohoku-Chihou-Taiheiyo-Oki Earthquake Main Measures to Secure Safety - 1 [Outline] 32  We promote the following measures to secure further safety after the Tohoku-Chihou-Taiheiyo-Oki Earthquake. I. Installation of flooding embankment III. Further enhancement of heat removal and II

  39. Slide 39: Main Measures to Secure Safety - 2 [Implementation Status]

    Efforts after the Tohoku-Chihou-Taiheiyo-Oki Earthquake Main Measures to Secure Safety - 2 [Implementation Status] 33 As of October 22, 2014 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

  40. Slide 40: Compliance examination under the New Regulatory Requirements

    Efforts after the Tohoku-Chihou-Taiheiyo-Oki Earthquake Compliance examination under the New Regulatory Requirements 34 - On September 27, 2013, TEPCO submitted to the Nuclear Regulation Authority (NRA) the application for permission for changes in reactor installation, approval for construction pla

  41. Slide 41: Geological Survey of Faults in the Kashiwazaki-Kariwa NPS site

    Efforts after the Tohoku-Chihou-Taiheiyo-Oki Earthquake Geological Survey of Faults in the Kashiwazaki-Kariwa NPS site 35 - In response to requests at the public hearing held by the Nuclear and Industrial Safety Agency of the Ministry of Economy, Trade and Industry (at the time) in August 2012, TEPC

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