Tokyo Electric Power Company Holdings, Incorporated · TSE:9501
Tokyo Electric Power — Investor Presentation (March 2004)
15 slides from Tokyo Electric Power's investor presentation, Mar 30, 2004
Slide 1: FY2004 Business Management Plan Presentation Materials
FY2004 Business Management Plan Presentation Materials March 30, 2004 Katsutoshi Chikudate Executive Vice President Tokyo Electric Power Company
Slide 2: Regarding Forward Looking Statements (Performance Projections)
Regarding Forward Looking Statements (Performance Projections) 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 th
Slide 3: Table of Contents
Table of Contents 2 1-1 FY2004 Business Management Plan: Key Points 3 1-2 Management Targets 4 1-3 Management Targets Structural Diagram 5 2-1 Competition in the Energy Market 6 2-2 Sales Targets 7 2-3 Energy Share in the Household Market 8 & Evaluation of All-electric Housing 2-4 Strengthening Gas
Slide 4: 1-1 FY2004 Business Management Plan: Key Points
1-1 FY2004 Business Management Plan: Key Points 3 Management Environment Intensifying IntensifyingCompetition CompetitioninintheElectric theElectricPower PowerMarket Market Loss Lossofoftrust trustfrom from (loss nuclear power plant (lossofofcustomers; customers;expansion expansionininthe thescope s
Slide 5: 1-2 Management Targets
1-2 Management Targets 4 FY2004 Plan FY2003 Plan (FY2004 – FY2006) (FY2003 – FY2005) (Consolidated) ¥550 billion or more ¥550 billion or more FCF (Non-consolidated) ¥550 billion or more ¥550 billion or more Ordinary Profit ¥300 billion or more ¥300 billion or more Profit Targets ROE 9% or more 9% or
Slide 6: 1-3 Management Targets Structural Diagram
1-3 Management Targets Structural Diagram 5 Increase Profitability and High Added Value Enhancement Balance Sheet Balance of profitability Improvement Sheet Profit Improvement Targets Targets Simultaneous achievement Secure FCF Maintain ROE Increase shareholders’ equity ratio Average of ¥550 billion
Slide 7: 2-1 Competition in the Energy Market
2-1 Competition in the Energy Market 6 TEPCO Customers Competitors PPS Air conditioning demand Absorption air conditioning systems, etc. Corporate Heat storage system, etc. Water heating demand and large-scale Boilers Production processes demand System electricity Self-generation Lighting and power
Slide 8: 2-2 Sales Targets
2-2 Sales Targets 7 (100 million kWh) (%) 16 14 Corporate and large-scale Total of 3 billion kWh 20 Household (FY 2004 – FY 2006) 12.1 12 9.5 15.0 15 10 8 7.5 6.6 10 All-electric new housing ratio 6 5.0 (right-hand scale) 4 5 2 2.4 0 0 Actual Target Target Target Target FY 2002 FY2003 FY2004 FY2005
Slide 9: 2-3 Energy Share in the Household Market & Evaluation of All-electric Housing
2-3 Energy Share in the Household Market & Evaluation of All-electric Housing 8 (1) Energy Share in the Household Market Share by use Cooling 2% Kitchen Hot water supply 36% Heating 24% Lighting, plug outlet 29% 9% Kerosene Cooling, Lighting, plug LPG 29% City Gas 56% 56% outlet = electricity 100%
Slide 10: 2-4 Strengthening Gas Sales
2-4 Strengthening Gas Sales 9 ¾ Strictly limit new capital expenditure and develop sales centered on factories located nearby existing LNG bases and gas pipelines whose profitability can be secured ¾ Performance and Targets (¥ billion) Sales LNG thermal power plants 30 30 Customers Gas supply lines
Slide 11: 3. Realization of Comprehensive Strengths as the TEPCO Group
3. Realization of Comprehensive Strengths as the TEPCO Group 10 Information Information Energy Energy Living Living Environment Environment & & & & && Telecommunications Telecommunications Environment Environment Lifestyle-related Lifestyle-related Fiber Optics Network Company (FTTH business) Area c
Slide 12: 4. Promotion of Cost Reductions
4. Promotion of Cost Reductions 11 (¥ billion) (Number of employees) 2,000 46,000 Capital expenditure (left-hand scale) 1,800 43,448 43,166 Maintenance Costs (left-hand scale) 44,000 42,672 Number of employees (right-hand scale) 42,170 41,882 41,403 1,600 Number of employees 42,000 40,725 Number of
Slide 13: 5. Balance Sheet Improvement
5. Balance Sheet Improvement 12 (¥ trillion) Shareholders’ Shareholders’ 11 equity equityratio ratio 22% 20% 20%orormore moreatatthe the 10.53 10.50 10.48 end of FY 2006 end of FY 2006 10.20 10.18 20% 10 9.86 9.42 18% Interest-bearing debt (left-hand scale) Shareholders’ equity ratio (right-hand sca
Slide 14: 6. Strengthening Corporate Governance: Management Structure Reforms
6. Strengthening Corporate Governance: Management Structure Reforms 13 1. Reform the Board of Directors • Reduce the number of board members from the present 32 to 20 or less Revitalization of the board; swift decision-making • Implement operations having the chairman, president and vice-presidents
Slide 15: 7. Summary
7. Summary 14 Efficiency Efficiencygains gainsthrough throughcompany-wide company-widestreamlining streamlining Efficiency gains distributed based on “profit sharing” concept Free cash flow Target: ¥550 billion or more (average FY ’04-‘06) Provide good-quality, low-priced electricity Interest-bearin
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