Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — FY2023 Earnings Presentation

59 slides from Tokyo Electric Power's earnings presentation, Apr 30, 2024

  1. Slide 1: FY2023 Financial Results

    FY2023 Financial Results (April 1, 2023 – March 31, 2024) 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 FY2023 Financial Results

    1 Overview of FY2023 Financial Results (Released on April 30, 2024) 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 facts but ra

  4. Slide 4: Consolidated Financial Results Summary

    1. Consolidated Financial Results Summary 2 【Main points of the FY2023 Financial Results】 ➢ Operating revenue decreased mainly as a result of a decrease in revenue at PG and EP caused by falling fuel/market prices, etc. ➢ Ordinary income/loss and Net Income/loss increased due mainly to the positive

  5. Slide 5: Key Factors Affecting Performance

    (Reference) Key Factors Affecting Performance 3 Electricity Sales Volume (Unit: Billion kWh) FY2023 FY2022 Comparison (A) (B) (A)-(B) (A)/(B) (%) Total Electricity Sales Volume 228.7 242.8 -14.0 94.2 Retail Electricity Sales Volume ※1 196.2 184.8 +11.4 106.2 Wholesale Electricity Sales Volume ※2 32.

  6. Slide 6: Overview of Each Company

    ２. Overview of Each Company 4 (Unit: Billion Yen) FY2023 FY2022 Comparison (A) (B) (A)-(B) (A)/(B) (%) Operating Revenue ※ 6918.3 8112.2 -1193.8 85.3 TEPCO Holdings (HD) 708.5 633.7 74.8 111.8 TEPCO Fuel & Power (FP) 3.8 3.9 -0.0 99.1 TEPCO Power Grid (PG) ※ 2205.0 2827.5 -622.4 78.0 TEPCO Energy Pa

  7. Slide 7: Points of Each Company

    3. Points of Each Companies 5 ➢ HD: Ordinary income decreased (230.0 billion yen was recorded as special contribution). ➢ FP: Ordinary income increased due mainly to a positive turn in the effects of time-lag from the fuel cost adjustment system at JERA. ➢ PG: Ordinary income increased due mainly to

  8. Slide 8: Consolidated Extraordinary Income/Loss

    ４．Consolidated Extraordinary Income/Loss 6 (Unit: Billion Yen) FY2023 FY2022 Comparison Extraordinary Income 138.9 693.5 -554.6 Grants-in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation ※1 138.9 507.4 -368.5 Gain on sale of shares of subsidiaries and associates - 12

  9. Slide 9: Summary of extraordinary loss on disaster

    (Reference) Summary of extraordinary loss on disaster 7 (Unit: Billion Yen) Summary Amount Cost of removing ALPS treated water storage tanks ※1 Fuel debris retrieval-related 99.7 Engineering costs incurred during the selection of fuel debris retrieval method, etc. ※2 Costs related to repairs aside f

  10. Slide 10: Consolidated Financial Position

    5. Consolidated Financial Position 8 ➢ Total assets balance increased by 1,032.3 billion yen due mainly to an increase in current assets. ➢ Total liabilities balance increased by 616.3 billion yen due mainly to an increase in interest-bearing debt. ➢ Total net assets balance increased by 416.0 billi

  11. Slide 11: Dividends and FY2024 Consolidated Performance Forecast

    6. Dividends and FY2024 Consolidated Performance Forecast 9 【Dividends】 ➢ TEPCO has decided not to pay out fiscal 2023 year-end dividends. ➢ No interim and year-end dividends are planned for fiscal 2024. 【 FY2024 Consolidated Performance Forecast 】 ➢ To be determined. ©Tokyo Electric Power Company H

  12. Slide 12: Year-on-Year Comparisons for TEPCO Holdings

    (Reference) Year-on-Year Comparisons for TEPCO Holdings 10 Ordinary Income/Loss (Unit: Billion Yen) Profit structure Income and expenditure includes dividend income, Increase in decommissioning subsidy income, management support fees, and received nuclear wholesale power sales, etc. Costs include ma

  13. Slide 13: Year-on-Year Comparisons for TEPCO Fuel & Power

    (Reference) Year-on-Year Comparisons for TEPCO Fuel & Power 11 Ordinary Income/Loss Profit structure Excluding impact of time-lag (Unit: Billion Yen) -10.7 Excluding Main profit is profit of entities accounted for using impact equity method, such as generation business at of time-lag 49.9 JERA. Impa

  14. Slide 14: Year-on-Year Comparisons for TEPCO Power Grid

    (Reference) Year-on-Year Comparisons for TEPCO Power Grid 12 Ordinary Income/Loss (Unit: Billion Yen) Profit structure Decrease in Impact of last Increase Operating revenue is mainly transmission revenue, and this is resort service fluctuated by area demand. electricity agreement ※2 Others in profit

  15. Slide 15: Year-on-Year Comparisons for TEPCO Energy Partner

    (Reference) Year-on-Year Comparisons for TEPCO Energy Partner 13 Profit Structure Increase in Operating revenue is mainly electricity sales revenue, and this is fluctuated by Ordinary Income/Loss profits: electricity sales volume. Expenses are mainly power purchasing costs and transmission fees of c

  16. Slide 16: Year-on-Year Comparisons for TEPCO Renewable Power

    (Reference) Year-on-Year Comparisons for TEPCO Renewable Power 14 Ordinary Income/Loss (Unit: Billion Yen) Profit structure Decrease in Decrease in Profit is mainly wholesale power sales of hydroelectric and profits: new energies. wholesale power Repair costs sales, etc. increase, etc. 6.8 billion E

  17. Slide 17: Image of Time-Lag

    (Reference) Image of Time-Lag 15 FY2022 FY2023 Impact from positive turn Gain of time-lag +229.0 billion + 435.0 billion yen yen Loss Revenue side element -206.0 billion yen Cost side element Apr 2022 Apr 2023 Mar 2024 ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  18. Slide 18: FY2023 Consolidated Performance Forecast Comparison

    (Reference) FY2023 Consolidated Performance Forecast Comparison 16 (Unit: Billion Yen) FY2023 FY2023 Comparison (Actual)(A) (Forecasted)(B) (A)-(B) (A)/(B) (%) Operating Revenue 6918.3 6926.0 -7.7 99.9 Operating Income/Loss 278.8 264.0 +14.8 105.6 Ordinary Income/Loss 425.5 390.0 +35.5 109.1 Extraor

  19. Slide 19: Forecast Comparison (Key factors affecting performance)

    (Reference) FY2023 Consolidated Performance Forecast Comparison 17 (Key factors affecting performance) Area Demand (Unit: Billion kWh) Comparison FY2023 FY2023 (Actual) (Forecasted) (A)-(B) (A)/(B) （％） A r e a D e m a n d 263.5 262.9 + 0.6 100.2 Exchange Rate/CIF FY2023 FY2023 Comarison (Actual) (Fo

  20. Slide 20: Forecast Comparison (Overview of each company)

    (Reference) FY2023 Consolidated Performance Forecast Comparison 18 (Overview of each company) (Unit: Billion Yen) FY2023 FY2023 Comparison (Actual)(A) (Forecasted)(B) (A)-(B) (A)/(B) (%) Operating Revenue 6918.3 6926.0 -7.7 99.9 TEPCO Holdings (HD) 708.5 707.0 +1.5 100.2 TEPCO Fuel & Power (FP) 3.8

  21. Slide 21: Supplemental Material

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

  22. Slide 22: Table of Contents

    Table of Contents 20 Financial Results Detailed Information Status of Kashiwazaki-Kariwa Nuclear Power Station Consolidated Statements of Income 22 Progress in safety measures work at Unit 7 40 The status of Grants–in-aid from Nuclear Damage Compensation and 23 Soundness confirmation after fuel load

  23. Slide 23: FY2023 Financial Results Detailed Information

    21 FY2023 Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  24. Slide 24: Consolidated Statements of Income

    Consolidated Statements of Income 22 (Unit: Billion Yen) Comparison FY2023(A) FY2022(B) (A)-(B) (A)/(B) (%) Operating Revenue ※ 6,918.3 8,112.2 -1,193.8 85.3 Operating Expenses ※ 6,639.5 8,341.1 -1,701.6 79.6 Operating Income / Loss 278.8 -228.9 507.8 － Non-operating Revenue 231.1 10.7 220.4 － Inves

  25. Slide 25: Grants-in-aid from NDF and Expenses for Nuclear Damage Compensation

    The status of Grants-in-aid from Nuclear Damage Compensation and Decommissioning Facilitation 23 Corporation and Expenses for Nuclear Damage Compensation (Unit: Billion Yen) Cumulative Item FY2010 to FY2022 FY2023 Amount ◇Grants-in-aid from Nuclear Damage Compensation and Decommissioning Facilitatio

  26. Slide 26: Consolidated Balance Sheets

    Consolidated Balance Sheets 24 (Unit: Billion Yen) <Interest-bearing debt outstanding> (Unit: Billion Yen) Mar.31 Mar. 31 Comparison Mar. 31 Mar. 31 (A)-(B) 2024 (A) 2023 (B) 2024 (A) 2023 (B) (A)-(B) (A)/(B) (%) Bonds 3,549.6 3,400.4 149.2 Total Assets 14,595.4 13,563.0 1,032.3 107.6 Long-term Debt

  27. Slide 27: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 25 (Unit: Billion Yen) Comparison FY2023 (A) FY2022 (B) (A)-(B) Cash flows from operating activities 673.0 -75.6 748.6 Income / loss before income taxes 302.3 -111.9 414.2 Depreciation and amortization 358.2 341.1 17.0 Increase (decrease) in decommissioning rese

  28. Slide 28: Overview of Consolidated Cash Flows

    Overview of Consolidated Cash Flows - Year on Year Comparison 26 Cash and cash equivalents as of March 31, 2024 increased 517.7 billion yen to 1,235.1 billion yen. - Cash flows from operating activities increased 673.0 billion yen mainly due to income before income taxes - Cash flows from investing

  29. Slide 29: Key Factors Affecting Performance

    Key Factors Affecting Performance 27 ※１ Total of EP consolidated (EP/TCS/PinT) and PG (last resort supply/islands) 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

  30. Slide 30: Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated

    Seasonal Breakdown of Retail Electricity Sales Volume and Total Power Generated 28 Retail Electricity Sales Volume（EP consolidated） Unit: Billion kWh FY2023 Apr-Sep Oct-Dec Jan Feb Mar Jan-Mar Full year Lighting 27.29 12.88 6.29 6.38 5.75 18.43 58.60 Power 70.21 31.96 10.74 10.94 10.94 32.61 134.78

  31. Slide 31: Gas Supply Business

    Gas Supply Business 29 Sales Volume Revenues (Million ton) (Billion yen) (FY) *~FY2015: former TEPCO (Non-consolidated), FY2016~: TEPCO Energy Partner * April 2017~ Full liberalization of gas market <FY2023 Actual Performance> Revenues: Recorded 315.2 billion yen, down 90.5 billion yen YoY due mainl

  32. Slide 32: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 30 Amount at Maturity (As of Mar. 31, 2024) (Billion Yen) TEPCO Public Bond TEPCO Power Grid Public Bond TEPCO Renewable Power Public Bond 35.0 (FY) Note: The amount redeemed for FY2023 totaled 260.0 billion yen. ©Tokyo Electric Power Company Holdings, Inc. All R

  33. Slide 33: Action to Implement Management Conscious of Cost of Capital and Stock Price

    31 Action to Implement Management that is Conscious of Cost of Capital and Stock Price ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  34. Slide 34: Enhancement of Responsibility to Fukushima

    Action to Implement Management that is Conscious of Cost of Capital and Stock Price ● 32 ✓ To restore public confidence and thoroughly fulfill our responsibility to Fukushima, TEPCO will make the best use of business resources and maximize our corporate value while being conscious of the market’s pe

  35. Slide 35: Secure 500 billion yen in annual funding for Fukushima

    （Reference）Secure 500 billion yen in annual funding to fulfill our responsibilities to Fukushima 33 Status of raising 500 billion yen per year (Billion Yen) FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 ①Decommissioning Reserve Fund 391.3 361.1 280.4 260.0 260.1 270.0 260.1 ②Special Contributions

  36. Slide 36: Initiatives of TEPCO Energy Partner

    34 Initiatives of TEPCO Energy Partner ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  37. Slide 37: Revision of extra high voltage and high voltage electricity rate plans

    The revision of extra high voltage and high voltage electricity rate plans (repost) 35 ✓ TEPCO has been rolling out revised rate plans for extra high voltage and high voltage customers in Kanto area since April 2023. ✓ The power sourse composition and the fuel prices in the formula for calculating e

  38. Slide 38: New extra high voltage and high voltage electricity rate plan

    28 Establishment of a new extra high voltage and high voltage electricity rate plan (repost) 36 ✓ In April 2023, a term to reflect around 30% of the change in spot market price was introduced into the electricity bill formula, in addition to the existing fuel cost adjustment term. This caused the el

  39. Slide 39: Approval of the regulated rate increases

    Approval of the regulated rate increases (repost) 37 ✓ On January 23, 2023, TEPCO Energy Partner applied for approval of changes to the Specified Retail Supply General Provisions for Retail Supply (regulated rates). Upon receiving the application, the METI Minister requested that we recalculate the

  40. Slide 40: 2023 TEPCO Energy Savings Program

    2023 TEPCO Energy Savings Program 38 ✓ In FY2022, in addition to providing electricity stably, TEPCO EP implemented “2022 TEPCO Energy Savings Program” to reduce the burden on customers by assisting them in conserving electricity, which led to energy conserves of approx. 2.5 billion kWh of energy. ✓

  41. Slide 41: Status of Kashiwazaki-Kariwa Nuclear Power Station

    39 Status of Kashiwazaki-Kariwa Nuclear Power Station ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  42. Slide 42: Progress in safety measures work at Unit 7

    Progress in safety measures work at Unit 7 40 ✓ Having completed a round of pre-service operator inspections for the safety measures work and before fuel loading as well as final checks, TEPCO applied for amendments to the pre-service confirmation with the NRA on March 28, 2024 as the next step in t

  43. Slide 43: Soundness confirmation after fuel loading

    Soundness confirmation after fuel loading 41 ✓ Once the fuel is loaded, checks will be conducted on the “stopping,” “cooling,” and “containment” functions, for example on leaks from the reactor pressure vessel and whether the control rod can be inserted appropriately. ✓ Fuel loading and soundness co

  44. Slide 44: Communication with the local community

    Communication with the local community 42 ✓ In terms of communication with the local community, the state of plant initiatives is disseminated through PR magazines and social media, and two-way communication is also being conducted through information sessions for the people of Niigata prefecture, c

  45. Slide 45: Current Status of Fukushima Daiichi Nuclear Power Station and Future Initiatives

    43 The Current Status of Fukushima Daiichi Nuclear Power Station and Future Initiatives ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  46. Slide 46: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 - 4 44 ✓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 information abo

  47. Slide 47: Milestones and progress in the 5th revision of Mid-and-Long-Term Roadmap

    Milestones and progress in the 5th revision of Mid-and-Long-Term Roadmap(December 2019) 45 Maintain Overall Framework of Decommissioning Schedule *The trial retrieval is expected to start no later than around October 2024 Dec. 2011 Nov. 2013 Dec. 2021* End of 2031 30 - 40 years after cold shutdown P

  48. Slide 48: Fuel Debris Retrieval Schedule and Process

    Fuel Debris Retrieval Schedule and Process Based upon the Mid-to-Long Term Decommissioning Implementation Plan 2024 46 ✓ On March 28, 2024, the Mid-to-Long Term Decommissioning Implementation Plan 2024 was published based on the results of FY2023. ✓ R&D and engineering to apply the results of that R

  49. Slide 49: Contaminated Water Measures

    Contaminated Water Measures 47 ✓ 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 policies (ⅰ) Remove the contamination sou

  50. Slide 50: Response Regarding the Handling of ALPS Treated Water (1)

    TEPCO Holdings’ Response Regarding the Handling of ALPS Treated Water 48 (1) TEPCO Holdings’ Approach to the Discharge of ALPS Treated Water ✓ TEPCO, as the body who has a responsibility to safely and steadily work on decommissioning the Fukushima Daiichi Nuclear Power Station, takes the government

  51. Slide 51: Response Regarding the Handling of ALPS Treated Water (2)

    TEPCO Holdings’ Response Regarding the Handling of ALPS Treated Water 49 （2） Design of Required Equipment and ALPS Treated Water Discharge Plan ✓ Discharge into the sea was started in August 24, 2023 after building equipment to secure safety, confirming that ALPS treated water can be diluted as plan

  52. Slide 52: Efforts to compensate for nuclear damages - 1

    Efforts to compensate for nuclear damages - 1 Amount of compensation paid and amount of compensation to be paid 50 ✓ The amount of compensation paid as of the end of March 2024 was 11,252.4 billion yen. ✓ In addition to this, additional compensation based on the 5th Supplement to the Interim Guideli

  53. Slide 53: Efforts to compensate for nuclear damages - 2

    Efforts to compensate for nuclear damages - 2 Overview of Necessary Funds 51 ✓ On December 22, 2023, the Japanese government’s Nuclear Emergency Response Headquarters decided on a strategy to raise the maximum limit on delivery bonds. (From 13.5 trillion yen to 15.4 trillion yen for victim compensat

  54. Slide 54: Other Initiatives

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

  55. Slide 55: Development of Offshore Wind Power Businesses: Efforts and Approaches

    Efforts of Renewable Energy Power Generation Businesses（RP） 46 (1) Efforts for and Approaches to the Development of Offshore Wind Power Businesses 53 ✓ With fixed-bottom type wind turbines, TEPCO RP will aim to further expand the business domestically and internationally by continuing to win and bui

  56. Slide 56: Status of the Development of Offshore Wind Power Businesses

    Efforts of Renewable Energy Power Generation Businesses（RP） 47 (2) Status of the Development of Offshore Wind Power Businesses 54 ✓ Domestically, TEPCO RP was selected as the operator of an offshore wind power generation project off the shores of Enoshima Island, Saikai City, Nagasaki Prefecture on

  57. Slide 57: Main Efforts to Increase Corporate Value -1

    Main Efforts to Increase Corporate Value -1 55 <TEPCO Holdings> January 30, 2024 Signed a collaboration agreement with the Hawaiian Electric Company, Inc. and Sacramento Municipal Utility District on the use of V2X technology that contributes to the further acceleration of initiatives to electrify t

  58. Slide 58: Main Efforts to Increase Corporate Value -2

    Main Efforts to Increase Corporate Value -2 56 <TEPCO Power Grid> January 24, 2024 Together with TEPCO Logistics Co., Ltd., started a business using a new pile construction method that leverages the characteristics of removed electricity poles, the first of its kind in the electricity industry. The

  59. Slide 59: Main Efforts to Increase Corporate Value -3

    Main Efforts to Increase Corporate Value -3 57 <TEPCO Energy Partner> January 16, 2024 Decided to launch “ EcoCute Day Shift Challenge “ as a initiative to use renewable energy efficiently, and will start receiving applications on April 1, 2024. January 29, 2024 Started soliciting applications for e

Tokyo Electric Power Company Holdings — FY2023 Earnings Presentation on 6ix