Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — FY2012 Earnings Presentation

50 slides from Tokyo Electric Power's earnings presentation, Apr 30, 2013

  1. Slide 1: FY2012 Earnings Results Presentation Material

    FY2012 Earnings Results (April 1, 2012 – March 31, 2013) Presentation Material Naomi Hirose President April 30, 2013 © 2013 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 FY2012 Earnings Results

    I. Overview of FY2012 Earnings Results © 2013 Tokyo Electric Power Company, Inc. All Rights Reserved.

  4. Slide 4: Key Points of FY2012 Earnings Results

    Key Points of FY2012 Earnings Results 1 Overview - Both consolidated and non-consolidated operating revenues increased due to increases in year-on-year unit electricity sales prices with adjusting fuel prices in addition to effects of rate revisions implemented in 2012. - Ordinary income recorded a

  5. Slide 5: FY2012 Earnings Results Summary (Consolidated and Non-Consolidated)

    FY2012 Earnings Results Summary (Consolidated and Non-Consolidated) 2 (Upper and lower rows show consolidated and non-consolidated figures, respectively.) (Unit: Billion Yen) Comparison FY2012 (A) FY2011 (B) (A)-(B) (A)/(B)(%) Electricity Sales Volume (billion kWh) 269.0 268.2 0.8 100.3 consolidated

  6. Slide 6: FY2012 Business Performance - 1

    FY2012 Business Performance - 1 - Electricity Sales Volume, Total Power Generated and Purchased 3 (Units: Billion kWh, %) FY2012 FY2013 Electricity Sales Volume 1st 3rd 4th 2nd Full Year Projection Half Quarter Quarter Half Regulated segment 49.66 24.63 31.87 56.50 106.17 104.46 ( -0.3 ) ( 5.8 ) ( -

  7. Slide 7: FY2012 Business Performance - 2

    FY2012 Business Performance - 2 - Comparison with the Previous Fiscal Year Results 4 (Unit: Billion Yen) FY2012 Actual (A) FY2011 Actual (B) Comparison (A)-(B) Co nsolidated N on-con so lid ated C onsolidated Non -consolidated Consolidated No n-consolidated Operating Revenues 5,976.2 5,769.4 5,349.4

  8. Slide 8: FY2012 Business Performance - 3

    FY2012 Business Performance - 3 - Comparison with the Previous Projections 5 (Unit: Billion Yen) FY2012 Full-year Projection FY2012 Actual (A) (B) Comparison (A)-(B) (As of Feb. 4, 2013) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Operating Revenues 5,97

  9. Slide 9: FY2012 Business Performance - 4

    FY2012 Business Performance - 4 - Financial Impact of the Great East Japan Earthquake [Extraordinary Income/Loss] 6 Grants–in-aid from Nuclear Damage Compensation Facilitation Corporation [Extraordinary Income] (Unit: billion yen) FY2012 Cumulative Item FY2010 FY2011 Amount First 9-Month Period Full

  10. Slide 10: FY2013 Business Performance Outlook [Full Year]

    FY2013 Business Performance Outlook [Full Year] - Key Factors Affecting Performance and Financial Impact 7 FY2013 FY2012 Key Factors Affecting Performance Full-year Full-year Previous Projection Projection Actual (As of Feb. 4) Electricity Sales Volume (billion kWh) 267.0 269.0 270.8 Crude Oil Price

  11. Slide 11: Dividend Policy

    Dividend Policy 8 Dividend Outlook for FY2012 and FY2013 - TEPCO paid out no interim dividend in fiscal 2012 and has decided not to pay out for fiscal 2012 year-end dividends. - Considering the current severe management environments, we regret to plan no interim and year-end dividends for fiscal 201

  12. Slide 12: [Reference] Fuel Consumption and Procurement

    [Reference] Fuel Consumption and Procurement 9 Fuel Consumption Data and Projection FY2009 FY2010 FY2011 FY2012 FY2013 Previous Actual Actual Actual Actual Outlook Outlook LNG (million tons) 18.51 19.46 22.88 23.71 23.82 - Oil (million kl) 4.37 4.75 8.08 10.50 11.10 - Coal (million tons) 3.54 3.02 3

  13. Slide 13: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 10 - Cost reduction: Fiscal 2012 outcomes of TEPCO and subsidiaries & affiliated companies were 496.9 billion yen and 31.4 billion yen, respectively, and achieved the fiscal 2012 targets. - Asset disposal: Fiscal 2012 outcomes for real estates, securities an

  14. Slide 14: Management Reform by Introducing In-House Company System

    Management Reform by Introducing In-House Company System Overview of Transactions in TEPCO 11 - As one pillar of the reform, an in-house company system started on April 1, 2013 with the idea to have a holding company system in the future. The three in-house companies Fuel & Power Company, Power Grid

  15. Slide 15: Efforts towards Nuclear Reform - 1

    Efforts towards Nuclear Reform - 1 Announcement of the Overview of Fukushima Nuclear Accident and Nuclear Safety Reform Plan 12 - TEPCO should not consider the causes of the Fukushima nuclear accidents as natural disasters, has to seriously accept the results that we could not prevent preventable ac

  16. Slide 16: Efforts towards Nuclear Reform - Framework for the Nuclear Reform

    Efforts towards Nuclear Reform - 2 [Reference] Framework for the Nuclear Reform 13 - For the purpose of promoting management and safety culture reforms, Nuclear Reform Monitoring Committee and Investigation/Verification Project Team were established as advisory bodies to the board of directors, alon

  17. Slide 17: II. FY2012 Earnings Results (Detailed Information)

    II. FY2012 Earnings Results (Detailed Information) © 2013 Tokyo Electric Power Company, Inc. All Rights Reserved.

  18. Slide 18: Statements of Income (Consolidated)

    Statements of Income (Consolidated) 14 (Unit: Billion yen) Comparison FY2012 (A) FY2011 (B) (A)-(B) (A)/(B) (%) Operating Revenues 5,976.2 5,349.4 626.7 111.7 - Grants–in-aid from Nuclear Damage Liability Facilitation Fund 696.8 billion yen Operating Expenses 6,198.2 5,621.9 576.2 110.3 - Gains on s

  19. Slide 19: Revenues Breakdown (Non-Consolidated)

    Revenues Breakdown (Non-Consolidated) 15 (Unit: Billion yen) Comparison FY2012 (A) FY2011 (B) (A)-(B) (A)/(B) (%) Ordinary Revenues 5,818.5 5,184.3 634.1 112.2 Operating Revenues 5,769.4 5,107.7 661.6 113.0 Operating Revenues from Electric Power Business 5,660.0 4,995.6 664.4 113.3 Electricity Sales

  20. Slide 20: Expenses Breakdown (Non-Consolidated)

    Expenses Breakdown (Non-Consolidated) 16 (Unit: Billion yen) Comparison FY2012 (A) FY2011 (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 6,196.1 5,592.7 603.4 110.8 Operating Expenses 6,034.9 5,426.9 608.0 111.2 Operating Expenses for Electric Power Business 5,929.7 5,319.3 610.3 111.5 Personnel 345.8 36

  21. Slide 21: Year-on-Year Comparison of Ordinary Expenses - 1

    Year-on-Year Comparison of Ordinary Expenses (Non-Consolidated) - 1 17 Personnel expenses (¥366.8 billion to ¥345.8 billion) -¥21.0 billion Salary and benefits (¥265.8 billion to ¥247.1 billion) -¥18.6 billion Retirement benefits (¥25.0 billion to ¥26.8 billion) +¥1.7 billion Decrease in amortizatio

  22. Slide 22: Year-on-Year Comparison of Ordinary Expenses - 2

    Year-on-Year Comparison of Ordinary Expenses (Non-Consolidated) - 2 18 Maintenance expenses (¥278.8 billion to ¥349.0 billion) +¥70.1 billion Generation facilities (¥105.4 billion to ¥130.6 billion) +¥25.1 billion Hydroelectric power (¥9.1 billion to ¥12.4 billion) +¥3.2 billion Thermal power (¥68.5

  23. Slide 23: Year-on-Year Comparison of Ordinary Expenses - 3

    Year-on-Year Comparison of Ordinary Expenses (Non-Consolidated) - 3 19 Power purchasing costs (¥780.8 billion to ¥865.3 billion) +¥84.4 billion Power purchased from other utilities (¥176.8 billion to ¥168.7 billion) Main Factors for Increase/Decrease -¥8.0 billion Power purchased from other supplier

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

    Balance Sheets (Consolidated and Non-Consolidated) 20 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Mar. 31, Mar. 31, Comparison 2013 (A) 2012 (B) (A)-(B) (A)/(B) (%) (Consolidated) 14,989.1 15,536.4 -547.3 96.5 Total Assets (Non-consolidated

  25. Slide 25: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 21 (Unit: Billion yen) Comparison FY2012 (A) FY2011 (B) (A)-(B) Cash flow from operating activities 260.8 -2.8 263.7 Income / loss before income taxes and minority interests (Net loss) -653.0 -753.7 100.7 Depreciation and amortization 621.0 686.5 -65.4 Provision

  26. Slide 26: [Reference] Schedules for Corporate Bond Redemption

    [Reference] Schedules for Corporate Bond Redemption (Non-consolidated) 22 (Billions yen) Amount at Maturity (As of March 31, 2013) 1400 1298.3 Foreign currency-denominated bond 1200 Domestic (Private bond) Domestic (Public bond) *2 1000 *1 Foreign currency-denominated bond (Breakdown) 672.4 *2 Priva

  27. Slide 27: Capital Expenditures (Consolidated and Non-Consolidated)

    Capital Expenditures (Consolidated and Non-Consolidated) 23 (Unit: Billion Yen) FY2012 Actual FY2011 Actual Comparison (A) (B) (A)-(B) Hydroelectric/Renewable energy generation (Non-consolidated) 17.0 15.3 1.6 Thermal power generation (Non-consolidated) 260.3 268.3 -8.0 Nuclear power generation (Non

  28. Slide 28: Segment Information

    Segment Information 24 (Unit: Billion yen) Comparison Major Subsidiaries in Others (Unit: Billion yen) FY2012 (A) FY2011 (B) (A)-(B) (A)/(B) (%) Oper ating Revenues Oper ating Inc ome YOY YOY Operating Revenues 5,976.2 5,349.4 626.7 111.7 Increase Increase 5,660.0 4,995.6 664.4 113.3 Toden Kogyo Co.

  29. Slide 29: [Reference] Gas Supply Business

    [Reference] Gas Supply Business 25 Operating Performance (Billion yen) Revenues Operating Income <FY2012 Actual Performance> 97.0 94.1 Operating revenues: Decreased 2.8 billion yen to 94.1 billion yen due to decreased sales volume although LNG price was increased. Operating expenses: Decreased 2.5 b

  30. Slide 30: [Reference] Oversea Business

    [Reference] Oversea Business 26 T EPCO (Investment Company or Project Name*1 Location *2 Output Start of commercial operation, etc. Investment ratio) Chang Bin & Fong Der Project T aiwan ¥5.8 billion ( 19.5% ) 490MW, 980MW Commenced operations in Mar. 2004 Starbuck Project T aiwan ¥2.3 billion ( 22.

  31. Slide 31: [Reference] Seasonal Breakdown of Electricity Sales

    [Reference] Seasonal Breakdown of Electricity Sales - Sales Volume, Total Power 27 Generated and Purchased (Units: Billion kWh, %) FY2011 FY2012 Electricity Sales Volume 3rd 4th 1st Half 2nd Half Full Year 1st Half Jan. Feb. Mar. 2nd Half Full Year Quarter Quarter 49 .79 57.17 106.96 49 .66 24.63 1

  32. Slide 32: [Reference] Recent Demand Trend of Large-Scale Industries

    [Reference] Recent Demand Trend of Large-Scale Industries 28 Electricity sales volume to large-scale industrial customers in fiscal 2012 decrease 1.3% due to decreased year-on-year sales growth in main industries in line with decline of production volume. [Year-on-year Electricity Sales Growth in La

  33. Slide 33: [Reference] Historical Prices of CIF Crude Oil, Fuel Coal and LNG

    [Reference] Historical Prices of CIF Crude Oil, Fuel Coal and LNG 29 ($/b・t) ($/t) 160 1000 900 140 800 120 700 100 600 80 500 400 60 300 40 Crude Oil Fuel Coal 200 20 LNG (Right-hand Scale) 100 Note: The numbers above are calculated by TEPCO based on CIF stats and temporary exchange rates. 0 0 Apr

  34. Slide 34: [Reference] The Progress of the Reviews of Japan's Energy Policies

    [Reference] The Progress of the Reviews of Japan’s Energy Policies 30 Sep. 19, 2012 Innovative Strategy for Energy and the Environment established by the Cabinet [Global Warming [Nuclear Power] Details [Green Growth] [Electricity System] [Energy Mix] Countermeasures] (METI*1, MOFA*2 and (Agencies in

  35. Slide 35: Overview and Schedule of Electricity System Reform

    [Reference] Overview and Schedule of Electricity System Reform 31 - On February 15, 2013, a report of the Expert Committee on the Electricity System Reform was announced and showed the directionality of electricity system reform and progress schedules. On April 2, 2013, based on this report, the Cab

  36. Slide 36: [Reference] Current Status of Fukushima Daiichi Nuclear Power Stations

    [Reference] The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives © 2013 Tokyo Electric Power Company, Inc. All Rights Reserved.

  37. Slide 37: Current Situation and Status of Fukushima Daiichi Nuclear Power Station

    Current Situation and Status of Fukushima Daiichi Nuclear Power Station 32 - At unit 1, 2 and 3, we continue circulatory water-cooling operations for their reactors, and the temperatures of the reactors have been kept between 20 and 30 degrees centigrade. - We continue circulatory water-cooling syst

  38. Slide 38: Mid-to-long Term Roadmap towards Decommissioning (1)

    Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4 (1) 33 - On December 21, 2011, TEPCO released "Mid-to-long Term Roadmap" for Fukushima Nuclear Power Station, following an accomplishment of STEP 2 shown on the "Roadmap towards Restorat

  39. Slide 39: Mid-to-long Term Roadmap towards Decommissioning (2)

    Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4 (2) 34 2. Mid-to-long Term Roadmap (1) Primary Targets ・This roadmap divides the term of decommissioning into the following three phases and will detail the main onsite work and R&D sche

  40. Slide 40: Mid-to-long Term Roadmap towards Decommissioning (3)

    Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4 (3) 35 3. Major Judgment Points on the Roadmap ・On this roadmap, we have set several judgment points up in order to consider necessity of additional R&D, or re-scheduling the process bef

  41. Slide 41: Our Commitment to Nuclear Damage Compensation

    Our Commitment to Nuclear Damage Compensation 36 - 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

  42. Slide 42: Decontamination Works in the Surrounding Areas

    Decontamination Works in the Surrounding Areas 37 - Act on Special Measures for Coping with Radioactive Pollution was approved in August of 2011 and fully came into force on January 1, 2012. The government budgets several hundred billion yen every year for funding decontamination works. - Based on t

  43. Slide 43: Financial Assistance of Nuclear Damage Liability Facilitation Fund

    Financial Assistance of Nuclear Damage Liability Facilitation Fund 38 - After a bill concerning Nuclear Damage Liability Facilitation Fund passed the Diet, the fund was officially established on September of 2011. - To get a financial assistance of the fund, the nuclear operator is required to prepa

  44. Slide 44: Law concerning Formation of a Nuclear Damage Liability Facilitation Fund

    Law concerning Formation of a Nuclear Damage Liability Facilitation Fund 39 The bill was approved by the Diet in August 2011. [ Key Points of the Law ] < Clarification of Government's Responsibility; Article 2 > - Government is required to take every possible step to help the new organization achiev

  45. Slide 45: The Current Status of Kashiwazaki-Kariwa Nuclear Power Station

    [Reference] The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives © 2013 Tokyo Electric Power Company, Inc. All Rights Reserved.

  46. Slide 46: Earthquake-Resistance and Safety

    Efforts after the Niigataken Chuetsu-Oki Earthquake in 2007 Overview of Status of Initiatives 40 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 Buildings (Jul. 18, 2008) (Sep. 18

  47. Slide 47: Basic Equipment Inspections

    Efforts after the Niigataken Chuetsu-oki Earthquake in 2007 [Facility Soundness Evaluation & Reinforcement Work] Progress Status of Each Unit 41 Status of Progress in Basic Inspections (Equipment-Level Inspection and Evaluation) Confirm the impact of an earthquake through testing, inspection and oth

  48. Slide 48: Main Measures to Secure Safety - 1 [Outline]

    Efforts after the Great East Japan Earthquake Main Measures to Secure Safety - 1 [Outline] 42  We promote the following measures to secure further safety after the Great East Japan Earthquake. I. Installation of seawalls (banks) III. Enhanced heat removal and cooling function III. Enhanced heat rem

  49. Slide 49: Main Measures to Secure Safety - 2 [Implementation Status]

    Efforts after the Great East Japan Earthquake Main Measures to Secure Safety - 2 [Implementation Status] 43 As of April 24, 2013 Item Schedule Unit1 Unit2 Unit3 Unit4 Unit5 Unit6 Unit7 I. Installation of seawalls (banks) To be completed in June 2013 Under construction Completed II. Countermeasures o

  50. Slide 50: Evaluation Results of the Geological Survey of Kashiwazaki-Kariwa

    Efforts after the Great East Japan Earthquake TEPCO’s Evaluation Results of the Geological Survey of Kashiwazaki-Kariwa Nuclear Power Station 44 - At the public hearing regarding earthquakes and tsunamis held by the Nuclear and Industrial Safety Agency of the Ministry of Economy, Trade and Industry

Tokyo Electric Power Company Holdings — FY2012 Earnings Presentation on 6ix