Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q1 FY2015 Earnings Presentation

50 slides from Tokyo Electric Power's earnings presentation, Jul 29, 2015

  1. Slide 1: FY2015 1st Quarter Earnings Results

    FY2015 1st Quarter Earnings Results (April 1 – June 30, 2015) Tokyo Electric Power Company July 29, 2015 © 2015 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: Overview of FY2015 1st Quarter Earnings Results

    Overview of FY2015 1st Quarter Earnings Results © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  4. Slide 4: Key Points of FY2015 1Q Earnings Results and Full-Year Forecasts

    Key Points of FY2015 1Q Earnings Results and Full-Year Forecasts 1 Ordinary income achieved profits in FY2015 1Q for the second consecutive year. < FY2015 1Q Earnings Results > - Operating revenues decreased mainly due to fuel cost adjustments. - On the other hand, ordinary income recorded 214.1 bil

  5. Slide 5: Consolidated Earnings Results - Year on Year Comparison

    １．Consolidated Earnings Results - Year on Year Comparison 2 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Jun(A) Apr-Jun(B) (A)-(B) (A)/(B) (% ) Operating Revenues 1,551.6 1,568.5 -16.8 98.9 Operating Income 228.2 70.6 157.5 322.9 Ordinary Income 214.1 52.5 161.6 407.8 Extraordinary Income 426.7

  6. Slide 6: Non-Consolidated Earnings Results - Year on Year Comparison

    ２．Non-Consolidated Earnings Results - Year on Year Comparison 3 © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  7. Slide 7: Power Demand and Supply - Year on Year Comparison

    ３．Power Demand and Supply - Year on Year Comparison 4 Total Power Generated and Purchased (Unit: Billion kWh) FY2015 FY2014 Comparison Adjust power supply Apr-Jun(A) Apr-Jun(B) (A)-(B) (A)/(B) (%) to demand decline by Power generated by TEPCO 48.7 51.8 -3.1 94.0 using thermal power Thermal power gen

  8. Slide 8: Key Factors Affecting Performance

    ４．Key Factors Affecting Performance - Year on Year Comparison 5 FY2015 FY2014 (A)-(B) Apr-Jun(A) Apr-Jun(B) Foreign Exchange Rate (Interbank, yen/dollar) 121.4 102.2 19.2 Crude Oil Prices (All Japan CIF, dollar/barrel) 59.5 109.6 -50.1 LNG Prices (All Japan CIF, dollar/barrel) 53.4 95.1 -41.7 <Fluct

  9. Slide 9: Income and Expenditure (Non-Consolidated): Revenues

    ５．The Status of Income and Expenditure (Non-Consolidated) - Year on Year Comparison 6 (1) Revenues (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Jun(A) Apr-Jun(B) (A)-(B) (A)/(B) (%) (Operating Revenues) 1,510.9 1,532.2 -21.2 98.6 Electricity Sales Revenues 1,349.9 1,385.5 -35.5 97.4 ・Decrease in

  10. Slide 10: Income and Expenditure (Non-Consolidated): Expenditures

    ６．The Status of Income and Expenditure (Non-Consolidated) - Year on Year Comparison 7 (2) Expenditures (Unit: Billion Yen) ・Decrease in thermal power FY2015 FY2014 Comparison generation -42.0 Apr-Jun(A) Apr-Jun(B) (A)-(B) (A)/(B) (%) ・Effect of fluctuations of exchange rate and CIF Personnel Expense

  11. Slide 11: Increase/Decrease of Consolidated Business Performance

    ７．Increase/Decrease of Consolidated Business Performance - Year on Year Comparison 8  Ordinary Income increased 161.6 billion yen to 214.1 billion yen. Ordinary Income Factors related to Increase in maintenance expenses and other (Unit: Billion Yen) Power Supply and Demand expenses, etc. (including

  12. Slide 12: Extraordinary Income/Loss (Consolidated)

    ８．Extraordinary Income/Loss (Consolidated) - Year on Year Comparison 9 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Jun Apr-Jun Extraordinary Income 426.7 - 426.7 Grants-in-aid from NDF* 426.7 - 426.7 Extraordinary Loss 405.6 218.8 186.7 Expenses for Nuclear Damage Compensation 405.6 218.8 186.7

  13. Slide 13: Consolidated Financial Position

    ９．Consolidated Financial Position - Year on Year Comparison 10 - Total assets decreased 35.0 billion yen mainly due to decline in cash and deposits. - Total liabilities decreased 272.7 billion yen mainly due to decline in interest-bearing debt. - Equity ratio improved by 1.7%. Balance Sheets as of M

  14. Slide 14: Supplemental Material

    Supplemental Material © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  15. Slide 15: Table of Contents

    Table of Contents Earnings Results Detailed Information 【 Refernce】 Consolidated Statements of Income 11 Other Initiatives Breakdown of Non-Consolidated Ordinary Revenues 12 Implementation of the Streamlining Policy 26 Breakdown of Non-Consolidated Ordinary Expenses 13 Efforts towards Nuclear Reform

  16. Slide 16: FY2015 1st Quarter Earnings Results Detailed Information

    FY2015 1rd Quarter Earnings Results Detailed Information © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  17. Slide 17: Consolidated Statements of Income

    Consolidated Statements of Income 11 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Operating Revenues 1,551.6 1,568.5 -16.8 98.9 Operating Expenses 1,323.3 1,497.8 -174.4 88.4 Operating Income 228.2 70.6 157.5 322.9 Non-operating Revenues 17.6 18.6 -0.9 94.

  18. Slide 18: Breakdown of Non-Consolidated Ordinary Revenues

    Breakdown of Non-Consolidated Ordinary Revenues 12 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Ordinary Revenues 1,526.0 1,544.3 -18.2 98.8 Operating Revenues 1,510.9 1,532.2 -21.2 98.6 Operating Revenues from Electric Power Business 1,485.3 1,504.6 -19.3

  19. Slide 19: Breakdown of Non-Consolidated Ordinary Expenses

    Breakdown of Non-Consolidated Ordinary Expenses 13 © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  20. Slide 20: Year-on-Year Comparison of Non-Consolidated Ordinary Expenses (1)

    Year-on-Year Comparison of Non-Consolidated Ordinary Expenses (1) 14 Personnel expenses (¥100.1 billion to ¥91.8 billion) - ¥8.2 billion Salary and benefits (¥71.2 billion to ¥65.5 billion) - ¥5.7 billion Retirement benefits (¥10.0 billion to ¥8.6 billion) - ¥1.3 billion Amortization of actuarial di

  21. Slide 21: Year-on-Year Comparison of Non-Consolidated Ordinary Expenses (2)

    Year-on-Year Comparison of Non-Consolidated Ordinary Expenses (2) 15 Maintenance expenses (¥58.5 billion to ¥71.6 billion) +¥13.1 billion Generation facilities (¥21.0 billion to ¥28.4 billion) +¥7.3 billion Hydroelectric power (¥2.0 billion to ¥1.5 billion) - ¥0.5 billion Main Factors for Increase/D

  22. Slide 22: Year-on-Year Comparison of Non-Consolidated Ordinary Expenses (3)

    Year-on-Year Comparison of Non-Consolidated Ordinary Expenses (3) 16 Power purchasing costs (¥235.9 billion to ¥251.2 billion) +¥15.3 billion Power purchased from other utilities (¥47.5 billion to ¥45.6 billion) Main Factors for Increase/Decrease - ¥1.9 billion Power purchased from other suppliers (

  23. Slide 23: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan Earthquake [Extraordinary Income/Loss, Non-Consolidated] 17 Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation [Extraordinary Income] (Unit: Billion Yen) FY 2010 to FY2015 Cumulative Item FY2014 FY2013 Apr-Jun Amount -

  24. Slide 24: Consolidated and Non-Consolidated Balance Sheets

    Consolidated and Non-Consolidated Balance Sheets 18 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion Yen) <Interest-bearing debt outstanding> Jun. 30 Mar. 31 Comparison (Unit: Billion Yen) 2015 (A) 2015 (B) (A)-(B) (A)/(B) (%) (Consolidated) 14,177.5

  25. Slide 25: Segment Information

    Segment Information 19 (Unit: Billion Yen) FY2015 FY2014 Comparison Apr-Jun (A) Apr-Jun (B) (A) - (B) (A)/(B) (%) Operating Revenues 1,551.6 1,568.5 -16.8 98.9 688.6 805.7 -117.1 85.5 Fuel & Power Company 16.6 24.2 -7.6 68.6 401.4 343.4 57.9 116.9 Power Grid Company 38.6 28.0 10.5 137.8 1,538.2 1,55

  26. Slide 26: FY2015 Key Factors Affecting Performance and Financial Impact

    FY2015 Key Factors Affecting Performance and Financial Impact 20 FY2015 Key Factors Affecting Performance Full-year Projection Apr-Jun (As of Jul. 29) (As of Apr. 28) Electricity Sales Volume (billion kWh) 58.6 259.3 261.4 Crude Oil Prices (All Japan CIF; dollars per barrel) 59.5 - - Foreign Exchang

  27. Slide 27: Schedules for Corporate Bond Redemption (Non-consolidated)

    [Reference] Schedules for Corporate Bond Redemption (Non-consolidated) 21 (Billion Yen) *2 *1 Foreign currency-denominated bond (Breakdown) *2 Private bond (Breakdown) *1 *2 *2 *2 *2 *2 *2 (FY) Note: The amount redeemed for Apr-Jun of fiscal 2015 totaled 258.1 billion yen. © 2015 Tokyo Electric Powe

  28. Slide 28: Seasonal Breakdown of Electricity Sales

    [Reference] Seasonal Breakdown of Electricity Sales - Sales Volume, Total Power Generated and Purchased 22 (Units: Billion kWh, %) Full-year Outlook FY2014 FY2015 Electricity Sales Volume for FY2015 1st 1st Latest Projection Apr. May Jun. Full year Apr. May Jun. Quarter Quarter Projection (As of Apr

  29. Slide 29: 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 quarter of fiscal 2015 decreased 2.7% due to decrease year-on-year sales growth in industries such as Paper & pulp, Chemicals, Ceramics & stone, Ferrous metals, No

  30. Slide 30: Fuel Consumption and Procurement

    [Reference] Fuel Consumption and Procurement 24 Fuel Consumption Data and Projection FY2015 FY2015 【 Reference】 FY2012 FY2013 FY2014 Full-year Apr-Jun FY2014 Actual Actual Actual Apr-Jun Actual Outlook Actual LNG(million tons) 23.71 23.78 23.49 － 5.13 5.40 Oil (million kｌ) 10.50 6.82 3.10 － 0.50 0.6

  31. Slide 31: Historical Prices of CIF Crude Oil, Fuel Coal and LNG

    [Reference] Historical Prices of CIF Crude Oil, Fuel Coal and LNG 25 (＄/b･t) (＄/t) Crude Oil Fuel Coal LNG (Right-hand Scale) Note: Preliminary figures are used for May and June, 2015. © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  32. Slide 32: FY2015 1st Quarter Earnings Results Other Initiatives

    FY2015 1rd Quarter Earnings Results Other Initiatives © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  33. Slide 33: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 26 <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 Busine

  34. Slide 34: Efforts towards Nuclear Reform - Framework for Nuclear Reform

    Efforts towards Nuclear Reform - 1 [Reference] Framework for Nuclear Reform 27 − Since April 2013, TEPCO has advanced the Nuclear Safety Reform Plan so that we may realize our determination that “the Fukushima nuclear accident will never be forgotten and we will be a nuclear operator which continues

  35. Slide 35: Report on status of the Nuclear Safety Reform Plan

    Efforts towards Nuclear Reform - 2 Report on status of the Nuclear Safety Reform Plan 28 − The treatment of highly contaminated water at Fukushima Daiichi has been completed. Overall power station risks have been reduced through the steady implementation of contaminated water countermeasures, improv

  36. Slide 36: Operational Alliances with Other Companies in Retail Sector

    Operational Alliances with Other Companies in Retail Sector 29 − In order to win out over the competition after full liberalization of the electricity market in April 2016 and increase TEPCO’s corporate value, product capability needs to be created so as to continually provided attractive services a

  37. Slide 37: Resumption and Expansion of Overseas Business

    Resumption and Expansion of Overseas Business 30 − To fulfill our responsibility for the restoration of Fukushima, TEPCO will further solidify our operating base for expanding earnings, and we will utilized the technologies and knowhow developed both inside and outside Japan to proactively expand ou

  38. Slide 38: The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives

    The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives © 2015 Tokyo Electric Power Company, 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 - At Units 1, 2 and 3, it was evaluated that the comprehensive cold shutdown condition had been maintained, judging from the temperatures of the reactors and spent fuel pools as well as the density of radioactive materials. To facilitate the remov

  40. Slide 40: 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 (1) 32 - TEPCO released “Mid-to-long Term Roadmap towards the decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4” in December, 2011. Based on the continually-revi

  41. Slide 41: 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 (2) 33 <Main target process of the Decommissioning> Previous Future efforts Area efforts Phase 2 (until commencement of fuel debris removal) Phase 3 (until decommissioning completed) Curre

  42. Slide 42: Countermeasures for contaminated water problem

    Countermeasures for contaminated water problem 34 − In December 2013, the government’s Nuclear Disaster Response Headquarters arranged a set of preventative and multi-tiered measures based on the three basic policies for addressing contaminated water issues. − On May 27, 2015, the treatment of RO co

  43. Slide 43: Our Commitment to Nuclear Damage Compensation

    Our Commitment to Nuclear Damage Compensation 35 - 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 which comprehens

  44. Slide 44: Framework of Decontamination Works

    Framework of Decontamination Works 36 - Decontamination works of radioactive materials discharged by Fukushima Daiichi Nuclear Power Station Accident are being implemented in accordance with the Act on Special Measures Concerning the Handling of Radioactive Pollution (the “Act”) enacted in August 20

  45. Slide 45: Compensation Support by Nuclear Damage Compensation and Decommissioning Facilitation Corporation

    Compensation Support by Nuclear Damage Compensation and Decommissioning 37 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

  46. Slide 46: The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

    The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives © 2015 Tokyo Electric Power Company, Inc. All Rights Reserved.

  47. Slide 47: Main Measures to Secure Safety (1) [Outline]

    Main Measures to Secure Safety (1) [Outline] 38  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 III. Further enhancement of heat III. Further enhancement

  48. Slide 48: Main Measures to Secure Safety (2) [Implementation Status]

    Main Measures to Secure Safety (2) [Implementation Status] 39 As of July22, 2015 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 into buildings (1) Installation of tide embankments (flood

  49. Slide 49: Compliance Review under the New Regulatory Requirements(1)

    Compliance Review under the New Regulatory Requirements(1) 40 - In November 2013, the Nuclear Regulation Authority (NRA) started plant and earthquake/tsunami countermeasures reviews as to the compliance under the New Regulatory Requirements for the Kashiwazaki-Kariwa Nuclear Power Station Units 6 an

  50. Slide 50: Compliance Review under the New Regulatory Requirements(2)

    Compliance Review under the New Regulatory Requirements(2) 41 - As of July 22, 2015, 48 Review Meetings and 155 hearings regarding plant examinations were held. - Regarding earthquake/tsunami countermeasures examination, 15 Review Meetings and 45 hearings were conducted. ＜Review Status regarding Pla

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