Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q2 FY2009 Earnings Presentation

38 slides from Tokyo Electric Power's earnings presentation, Oct 30, 2009

  1. Slide 1: FY2009 2nd Quarter Financial Results

    TOKYO ELECTRIC POWER COMPANY TEPCO FY2009 2nd Quarter Financial Results (April 1, 2009 – September 30, 2009) Presentation Materials Masaru Takei Managing Director October 30, 2009 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2009

  2. Slide 2: Disclaimer

    TEPCO Disclaimer Regarding Forward-Looking Statements (Performance Projections) Certain statements in the following presentation regarding The Tokyo Electric Power Company’s business operations may constitute “forward-looking statements.” As such, these statements are not historical facts but rather

  3. Slide 3: Overview of FY2009 2nd Quarter Financial Results

    TEPCO Ⅰ．Overview of FY2009 2nd Quarter Financial Results The Tokyo Electric Power Company, Inc. All Rights Reserved ©2009

  4. Slide 4: Key points of Results for FY2009 1st Half

    Key points of Results for FY2009 1st Half 1 TEPCO Overview ： Overview：  Operating Operatingrevenues:【Consolidated】 revenues:【Consolidated】 ¥2,497.8 ¥2,497.8billion billion(decrease (decreaseofof13.0%, 13.0%,year-on-year) year-on-year) 【Non-consolidated】¥2,397.8 billion (decrease of 12.7%, year-on-

  5. Slide 5: FY2009 1st Half Financial Results Summary (Consolidated and Non-consolidated)

    FY2009 1st Half Financial Results Summary (Consolidated and Non-consolidated) 2 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) FY2009 (A) FY2008 (B) Comparison 1st half 1st half (A)-(B) (A)/(B)(%) Electricity sales volume (Billion kWh) 1

  6. Slide 6: Impact of the Shutdown of Kashiwazaki-Kariwa Nuclear Power Station

    Impact of the Shutdown of Kashiwazaki-Kariwa Nuclear Power Station 3 TEPCO (Unit: Billion yen) FY2009 1Q FY2009 1H 【Ref.】FY2008 1H 【Ref.】FY2007 【Ref.】FY2008 actual actual actual actual actual performance performance performance performance performance Total 96.0 154.0 322.0 615.0 649.0 Fuel expenses

  7. Slide 7: Performance Outlook for FY2009-1 - Electricity Sales Volume

    Performance Outlook for FY2009-1 - Electricity Sales Volume, Total Power Generated and Purchased 4 TEPCO Electricity Sales Volume (Units: Billion kWh, %) FY2009 FY2009 Previous 1st Quarter 2nd Quarter 1st Half Projection [Results for the First Half of FY 2009 ] Projection 23.92 26.71 50.63 109.30 10

  8. Slide 8: Performance Outlook for FY2009-2 - Key Factors Affecting Performance

    Performance Outlook for FY2009-2 - Key Factors Affecting Performance and Financial Impact 5 TEPCO Key Factors Affecting Performance FY2009 1st Half Full Year Projection Projection Actual Performance （as of Oct. 30） （as of Jul. 31） (as of Jul. 31) Electricity sales volume (billion kWh) 138.3 141.2 28

  9. Slide 9: Performance Outlook for FY2009-3 - Comparison with the previous projection

    Performance Outlook for FY2009–3 - Comparison with the previous projection 6 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Operating Operating Ordinary Net revenues income or loss income or loss income or loss FY2010 (Consolidated) 5,10

  10. Slide 10: Performance Outlook for FY2009-4 - Comparison with the previous results

    Performance Outlook for FY2009–4 - Comparison with the previous results 7 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Operating Operating Ordinary Net revenues income or loss income or loss income or loss FY2009 (Consolidated) 5,100.0

  11. Slide 11: Dividend Policy – returning profit to shareholders

    Dividend Policy – returning profit to shareholders 8 TEPCO  Based on its constant nominal payment policy, TEPCO aims to achieve consolidated dividend payout ratio of 30%.  We are committed to sharing profits with careful consideration of the company’s performance and financial structure in stages.

  12. Slide 12: FY2009 2nd Quarter Financial Results (Detailed Information)

    TEPCO Ⅱ. FY2009 2nd Quarter Financial Results (Detailed Information) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2009

  13. Slide 13: Statement of Income (Consolidated)

    Statement of Income (Consolidated) 9 TEPCO (Unit: Billion yen) FY2009(A) FY2008 (B) Comparison 1st half 1st half (A)-(B) (A)/(B) (%) Operating revenues 2,497.8 2,870.2 -372.3 87.0 Operating expenses 2,257.2 2,994.7 -737.5 75.4 Operating income or loss 240.6 -124.5 365.2 － Non-operating revenues 39.7

  14. Slide 14: Revenues Breakdown (Non-consolidated)

    Revenues Breakdown (Non-consolidated) 10 TEPCO (Unit: Billion yen) FY2009(A) FY2008(B) Comparison 1st half 1st half (A)-(B) (A)/(B) (%) Decrease in electricity sales volume (-9.6 billion kWh) -\168 billion Ordinary revenues 2,416.1 2,767.5 -351.3 87.3 Drop in unit sales price Operating revenues 2,39

  15. Slide 15: Expenses Breakdown (Non-consolidated)

    Expenses Breakdown (Non-consolidated) 11 TEPCO (Unit: Billion yen) FY2009(A) FY2008(B) Comparison 1st half 1st half (A)-(B) (A)/(B) (%) Ordinary expenses 2,242.1 2,963.7 -721.5 75.7 Operating expenses 2,173.1 2,890.8 -717.6 75.2 Operating expenses for electric power business 2,145.9 2,848.2 -702.2 7

  16. Slide 16: Year-on-Year Comparison of Ordinary Expenses – 1

    Year-on-Year Comparison of Ordinary Expenses – 1 (Non-consolidated) 12 TEPCO Personnel expenses (¥231.9 billion to ¥245.4 billion) +¥13.4 billion Retirement benefits(¥33.3 billion to ¥47.1 billion) +¥13.7 billion Increase in amortization of actuarial difference (¥14.4 billion to ¥28.0 billion) ＜Amor

  17. Slide 17: Year-on-Year Comparison of Ordinary Expenses – 2

    Year-on-Year Comparison of Ordinary Expenses – 2 (Non-consolidated) 13 TEPCO Maintenance expenses (¥187.1 billion to ¥182.2 billion) -¥4.9 billion Generation related (¥86.5 billion to ¥84.9 billion) -¥1.6 billion Hydroelectric power (¥4.1 billion to ¥3.8 billion) -¥0.2 billion Thermal power (¥45.3 b

  18. Slide 18: Year-on-Year Comparison of Ordinary Expenses – 3

    Year-on-Year Comparison of Ordinary Expenses – 3 (Non-consolidated) 14 TEPCO Fac tors for Increase/Decrease Power purchasing cost (¥422.2 billion to ¥351.4 billion) Purchased power from other utilities： -¥70.8 billion Purchased power from other utilities (¥110.7 billion to ¥99.6 billion) : Decrease

  19. Slide 19: Year-on-Year Comparison of Ordinary Expenses – 4

    Year-on-Year Comparison of Ordinary Expenses – 4 (Non-consolidated) 15 TEPCO Interest paid (¥66.9 billion to ¥65.7 billion) -¥1.2 billion Lower average interest rate (FY2008/1H: 1.76% to FY2009/1H: 1.74%) -¥1.7 billion Increase in average amount of debt outstanding +¥0.4 billion Other non-operating

  20. Slide 20: Balance Sheets (Consolidated and Non-consolidated)

    Balance Sheets (Consolidated and Non-consolidated) 16 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Sep. 30, Mar. 31, Comparison 2009 (A) 2009 (B) (A)-(B) (A)/(B) (%) Bond issued in FY2009 (Consolidated) 13,245.4 13,559.3 -313.8 97.7 To

  21. Slide 21: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows 17 TEPCO (Unit: Billion yen) FY2009(A) FY2008(B) Comparison 1st half 1st half (A)-(B) Cash flow from operating activities 524.3 154.7 369.6 Quarterly income / loss before income taxes and minority interests 222.4 -164.3 386.8 Depreciation and amortization 379.6 3

  22. Slide 22: Free Cash Flow and its Application

    Free Cash Flow and its Application (Consolidated and Non-consolidated) 18 TEPCO (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) FY2009 (A) FY2008 (B) Comparison 1st half 1st half (A)-(B) (Consolidated) 524.3 154.7 369.6 Cash flow from operating

  23. Slide 23: Segment Information

    Segment Information 19 TEPCO (Unit: Billion yen) Major subsidiaries in each segment (Unit: Billion yen) FY2009 (A) FY2008 (B) Comparison Operating revenues Operating income 1st half 1st half (A)-(B) (A)/(B) (%) Increase or Increase or decrease decrease Operating revenues 2,497.8 2,870.2 -372.3 87.0

  24. Slide 24: Gas Supply Business

    Gas Supply Business 20 TEPCO (Unit: Billion yen) 1st FY2009 1H(A) FY2008 1H(B) Comparison 1st Half Half Results Actual Performance Actual Performance (A)-(B) (A)/(B) (%) Results Operating revenues 26.5 31.3 -4.7 84.9 Operating expenses 22.2 37.3 -15.0 59.6 Operating income or loss 4.3 -6.0 10.3 － ap

  25. Slide 25: Monthly Breakdown of Electricity Sales

    【Reference】Monthly Breakdown of Electricity Sales 21 TEPCO - Electricity Sales Volume, Total Power Generated and Purchased Electricity Sales Volume (Units: Billion kWh, %) FY2008 FY2009 1st Half 2nd Half Full Year Apr. May Jun. Jul. Aug. Sep. 1st Half 51.85 56.12 107.96 9.18 7.91 6.83 8.46 9.56 8.69

  26. Slide 26: Recent demand trend of Large-scale Industries

    【Reference】Recent demand trend of Large-scale Industries 22 TEPCO  Reflecting continued decline in production levels, electricity sales volume for large-scale industrial customers decreased a substantial 14.6 percent compared with the same period of the previous year. 【Year-on-year Electricity Sale

  27. Slide 27: Performance of TEPCO's Marketing & Sales Activities

    【Reference】Performance of TEPCO’s Marketing & Sales Activities 23 TEPCO ◆ Cumulative Expansion of Electricity Sales Volume ◆ Cumulative Number of All-Electric Homes （billion kWh） (thousand) 12 700 Commercial 10 billion kWh = Sales Target on MGMT Vision 201010.4 10 & Industrial 600 9.5 8 7.8 500 Resi

  28. Slide 28: Fuel Procurement and Consumption

    【Reference】Fuel Procurement and Consumption 24 TEPCO TEPCO’s TEPCO’sFuel FuelProcurement ProcurementPolicy Policy [LNG [LNG –– for for middle-load power middle-load power supply] supply] Based Based on on procurement procurement under under bilateral bilateral long -term contracts, long-term contrac

  29. Slide 29: The current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    TEPCO 【Reference】 The current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives The Tokyo Electric Power Company, Inc. All Rights Reserved ©2009

  30. Slide 30: Earthquake-Resistance and Safety Improvement Initiatives: Overview of Status

    TEPCO Overview of Status of Initiatives 25 Item Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Submission of inspection and Submitted Submitted Submitted Submitted Submitted Submitted Submitted evaluation plan (Jul. 18, 2008) (Sep. 18, 2008) (Jul. 18, 2008) (Sep. 18, 2008) (Sep. 18, 2008) (May 20,

  31. Slide 31: Progress for the Restart of Operations at Kashiwazaki-Kariwa Unit 7

    Progress for the Restart of Operations at Kashiwazaki-Kariwa Unit 7 26 TEPCO ◆ Status of Unit 7 [From the completion of examining overall plant functions to the present (June 19 to October 30)] ・Jun. 19: Completed the examination of overall plant functions (the exam started on May 8). ・Jun. 23: Repo

  32. Slide 32: Progress for the Restart of Operations at Kashiwazaki-Kariwa Unit 6

    Progress for the Restart of Operations at Kashiwazaki-Kariwa Unit 6 27 TEPCO ◆Status of Unit 6 ・Jul. 3: Requests for permission to restart operations submitted to local governments of Niigata Prefecture, Kashiwazaki City and Kariwa Village. ・Aug. 13: The Technical Committee of Niigata Prefecture sta

  33. Slide 33: Testing of Overall Plant Functions at Unit 6

    TEPCO Testing of Overall Plant Functions at Unit 6 28 Aug. 25 Condenser vacuum elevated Aug. 30 Main turbine started Aug. 26 Control rod extraction begins Aug. 30 Generators begin operating in parallel Sep. 4 Output reaches 75% Sep. 10 Output reaches 100% 7MPa Sep. 2 Output reaches 50% Sep. 10 Const

  34. Slide 34: Basic Equipment Inspections

    【Facility Soundness Evaluation】 TEPCO Status of Progress at Each Unit 29 ◆ Status of Progress of Basic Inspections (Equipment-Level Inspection and Evaluation) －Confirm the impact of an earthquake through testing, inspection and other means according to the particular features of each facility. As of

  35. Slide 35: Reinforcement Work

    【Earthquake-Resistance and Safety Improvement Initiatives】 TEPCO Reinforcement Work 30 ◆ TEPCO is conducting work as needed to reinforce the earthquake resistance of key facilities. ◆ Current schedule of work planned and in progress Note: Excludes preparatory work 2008 2009 Jun. Jul. Aug. Sep. Oct.

  36. Slide 36: Evaluation Procedure of a unit's soundness and safety

    【Reference】 TEPCO Evaluation Procedure of a unit’s soundness and safety 31 Evaluation of Earthquake Evaluation of Facility Soundness due to the Chuetsu-Oki Earthquake Resistance and Safety Evaluation of Building and Structure Evaluation of Equipment and Evaluation of Earthquake Resistance and Safety

  37. Slide 37: Governmental Inspection and Investigation System

    【Reference】 TEPCO Governmental Inspection and Investigation System 32 METI Cabinet Office and Nuclear and Industrial Nuclear and Industrial Nuclear Safety Safety Agency (NISA) Double check Commission Safety Division Report Subcommittee on Nuclear Facility Investigative Taskforce Nuclear Disaster Pre

  38. Slide 38: Niigata Prefecture's Original Assessment System

    【Reference】 TEPCO Niigata Prefecture’s Original Assessment System 33 The Technical Committee Niigata Prefectural ・Gives technical directions/advices to Pref. Directions Government Niigata Residents ・Interprets incidents and its impacts on the plants Advices ・Concludes technical and concrete counter-

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