Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q1 FY2016 Earnings Presentation

44 slides from Tokyo Electric Power's earnings presentation, Jul 28, 2016

  1. Slide 1: FY2016 1st Quarter Financial Results

    FY2016 1st Quarter Financial Results (April 1 – June 30, 2016) Tokyo Electric Power Company Holdings, Inc. ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  2. Slide 2: Regarding Forward-Looking Statements

    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 rather predictions about the future, which inherently involve risks an

  3. Slide 3: Overview of FY2016 1st Quarter Financial Results

    Overview of FY2016 1st Quarter Financial Results (Released on July 28, 2016) ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  4. Slide 4: Key Points of FY2016 1st Quarter Financial Results

    Key Points of FY2016 1st Quarter Financial Results 1 < FY2016 1st Quarter Financial Results >  Ordinary revenues decreased for the second consecutive year due to a decrease in the unit price of electricity resulting from fuel cost adjustments etc. and a decrease in electricity sales.  Ordinary exp

  5. Slide 5: 1. Consolidated Financial Results

    1. Consolidated Financial Results 2 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Jun(A) Apr-Jun(B) (A)-(B) (A)/(B) (% ) Operating Revenues 1,264.9 1,551.6 -286.6 81.5 Operating Income 143.6 228.2 -84.6 62.9 Ordinary Income 136.7 214.1 -77.3 63.9 Extraordinary Income - 426.7 -426.7 - Extraordinar

  6. Slide 6: 2. Electricity Sales Volume/ Key Factors Affecting Performance

    2. Electricity Sales Volume/ Key Factors Affecting Performance 3 Electricity Sales Volume (Unit: Billion kWh) FY2016 FY2015 Comparison Apr-Jun*(A) Apr-Jun(B) (A)-(B) (A)/(B) (%) Lighting 19.0 19.7 -0.7 96.3 Power 37.3 38.9 -1.6 95.8 Total 56.3 58.6 -2.3 96.0 * Excluding islands. Including nation-wid

  7. Slide 7: 3. Ordinary Revenues (Consolidated)

    3. Ordinary Revenues (Consolidated) 4 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr - Jun (A) Apr - Jun (B) (A)-(B) (A)/(B) (%) ・Effect of fuel cost adjustments -263.0 (Operating Revenues) 1,264.9 1,551.6 -286.6 81.5 ・Decrease in electricity sales -47.0 Electricity Sales Revenues 1,064.4 1,349.9

  8. Slide 8: 4. Ordinary Expenses (Consolidated)

    4. Ordinary Expenses (Consolidated) 5 ・Effect of price (Unit: Billion Yen) fluctuations of exchange FY2016 FY2015 Comparison rate, CIF and others Apr - Jun (A) Apr - Jun (B) (A)-(B) (A)/(B) (%) -163.0 Personnel Expenses 88.3 91.8 -3.5 96.2 ・Decrease in thermal power generation -11.0 Fuel Expenses 22

  9. Slide 9: 5. Extraordinary Income/ Loss (Consolidated)

    5. Extraordinary Income/ Loss (Consolidated) 6 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Jun Apr-Jun Extraordinary Income - 426.7 -426.7 Grants-in-aid from NDF* - 426.7 -426.7 Extraordinary Loss 119.9 405.6 -285.7 Expenses for Nuclear Damage Compensation 119.9 405.6 -285.7 Extraordinary Incom

  10. Slide 10: 6. Consolidated Financial Position

    6. Consolidated Financial Position 7 Total assets decreased 610.2 billion yen mainly due to decline in cash and deposits. Total liabilities decreased 592.9 billion yen mainly due to decline in interest-bearing debt. Equity ratio improved by 0.6%. Balance Sheets as of Mar. 31, 2016 Balance Sheets

  11. Slide 11: Supplemental Material

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

  12. Slide 12: Table of Contents

    Table of Contents Financial Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 8 Current Situation and Status of Units 1 through 4 23 Breakdown of Consolidated Ordinary Revenues 9 Overview of the Mid-to-long Term Roadmap-

  13. Slide 13: FY2016 1st Quarter Financial Results Detailed Information

    FY2016 1st Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  14. Slide 14: Consolidated Statements of Income

    Consolidated Statements of Income 8 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Operating Revenues 1,264.9 1,551.6 -286.6 81.5 Operating Expenses 1,121.3 1,323.3 -201.9 84.7 Operating Income 143.6 228.2 -84.6 62.9 Non-operating Revenues 22.9 17.6 5.2 129.

  15. Slide 15: Breakdown of Consolidated Ordinary Revenues

    Breakdown of Consolidated Ordinary Revenues 9 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Ordinary Revenues 1,287.8 1,569.2 -281.4 82.1 Operating Revenues 1,264.9 1,551.6 -286.6 81.5 Operating Revenues from Electric Power Business 1,210.3 1,485.3 -274.9 8

  16. Slide 16: Breakdown of Consolidated Ordinary Expenses

    Breakdown of Consolidated Ordinary Expenses 10 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 1,151.1 1,355.1 -204.0 84.9 Operating Expenses 1,121.3 1,323.3 -201.9 84.7 Operating Expenses for Electric Power Business 1,077.0 1,273.6 -196.6 8

  17. Slide 17: Year-on-Year Comparison of Consolidated Ordinary Expenses - 1

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 1 11 Personnel expenses (¥91.8 billion to ¥88.3 billion) - ¥3.5 billion Salary and benefits (¥65.5 billion to ¥66.3 billion) +¥0.8 billion Retirement benefits (¥8.6 billion to ¥4.4 billion) - ¥4.2 billion Amortization of actuarial differenc

  18. Slide 18: Year-on-Year Comparison of Consolidated Ordinary Expenses - 2

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 2 12 Maintenance expenses (¥71.6 billion to ¥69.8 billion) -¥1.8 billion Generation facilities (¥28.4 billion to ¥18.2 billion) -¥10.1 billion Hydroelectric power (¥1.5 billion to ¥1.1 billion) - ¥0.3 billion T hermal power (¥13.9 billion t

  19. Slide 19: Year-on-Year Comparison of Consolidated Ordinary Expenses - 3

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 3 13 Power purchasing costs (¥251.2 billion to ¥222.4 billion) - ¥28.7 billion Power purchased from other utilities (¥45.6 billion to ¥6.9 billion) - ¥38.6 billion Power purchased from other suppliers (¥205.6 billion to ¥215.5 billion) +¥9.

  20. Slide 20: Increase/ Decrease of Consolidated Business Performance

    14 Increase/ Decrease of Consolidated Business Performance  Ordinary income decreased 77.3 billion yen to 136.7 billion yen. Ordinary Income Others (Unit: Billion Yen) Factors related to Power Supply and Demand (including renewable energy) +34.6 - 112.0 Decrease in Profits 77.3 billion yen Foreign

  21. Slide 21: Financial Impact of the Great East Japan Earthquake [Extraordinary Income/ Loss]

    Financial Impact of the Great East Japan Earthquake [Extraordinary Income/ Loss] 15 Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation [Extraordinary Income] (Unit: Billion Yen) FY 2010 to FY2016 Cumulative Item FY2015 Apr-Jun Amount - Grants-in-aid based on

  22. Slide 22: Consolidated Balance Sheets

    Consolidated Balance Sheets 16 <Interest-bearing debt outstanding> (Unit: Billion Yen) (Unit: Billion Yen) Jun. 30 Mar. 31 Comparison Jun. 30 Mar. 31 (A)-(B) 2016 (A) 2016 (B) (A)-(B) (A)/(B) (%) 2016 (A) 2016 (B) Total Assets 13,049.5 13,659.7 -610.2 95.5 Bonds 3,380.6 3,480.6 -100.0 Long-term Debt

  23. Slide 23: Segment Information

    Segment Information 17 (Unit: Billion Yen) FY2016 FY2015 Comparison Apr-Jun (A) Apr-Jun (B) (A) - (B) (A)/(B) Operating Revenues 1,264.9 1,551.6 -286.6 81.5 231.1 172.4 58.6 134.0 Holdings 15.5 10.9 4.6 142.6 417.4 688.6 -271.2 60.6 Fuel & Power 7.6 16.6 -8.9 45.9 368.7 401.4 -32.7 91.8 Power Grid 5

  24. Slide 24: [Reference] Schedules for Corporate Bond Redemption

    [Reference] Schedules for Corporate Bond Redemption 18 (Billion Yen) Foreign currency-denominated bond Domestic (Private bond) *2 Domestic (Public bond) (Note) Excluding ICB (Inter-company bond) *1 Foreign currency-denominated bond (Breakdown) *2 Private bond (Breakdown) *1 *2 *2 *2 *2 *2 *2 (FY) No

  25. Slide 25: [Reference] Key Factors Affecting Performance and Financial Impact

    [Reference] Key Factors Affecting Performance and Financial Impact 19 Key Factors Affecting Performance Financial Impact (Sensitivity) （Unit: billion yen） FY2016 FY2016 【 Reference】 【 Reference】 FY2015 Actual Performance Full-Year Projection FY2015 Full-Year Full-year Projection Actual Performance A

  26. Slide 26: [Reference] Seasonal Breakdown of Electricity Sales Volume

    [Reference] Seasonal Breakdown of Electricity Sales Volume 20 Electricity Sales Volume Unit: Billion kWh FY2016 Apr May Jun Apr-Jun Lighting 7.27 6.12 5.56 18.95 Power 12.22 11.72 13.39 37.33 Total 19.48 17.84 18.96 56.28 Unit: Billion kWh FY2015 [Ref.]Year-on-year Apr May Jun Apr-Jun Comparison (Ap

  27. Slide 27: [Reference] Fuel Consumption

    [Reference] Fuel Consumption 21 Fuel Consumption Data 【 Reference】 FY2013 FY2014 FY2015 FY2016 FY2015 Actual Actual Actual Apr-Jun Apr-Jun LNG(million tons) 23.78 23.49 21.55 4.66 5.13 Oil (million kｌ) 6.82 3.10 2.48 0.51 0.50 Coal (million tons) 7.76 7.53 8.34 1.82 1.75 Note: The oil data is total

  28. Slide 28: [Reference] Feed-in Tariff Scheme for Renewable Energy

    [Reference] Feed-in Tariff Scheme for Renewable Energy 22 (Purchase Cost Collection Flow) （FY 2016 1st Quarter) Avoidable Cost 21.2 billion yen Cost Bearing Adjustment Organization Renewable Generators Energy (Green Investment Promotion Subsidy Purchase Cost 82.8 billion yen 104.0 billion yen Organi

  29. Slide 29: The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives

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

  30. Slide 30: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 23 - 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

  31. Slide 31: Overview of the Mid-to-long Term Roadmap towards Decommissioning - 1

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of 24 Fukushima Daiichi Nuclear Power Station - 1 - TEPCO, jointly with the national government, released “Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4” in Decemb

  32. Slide 32: Overview of the Mid-to-long Term Roadmap towards Decommissioning - 2

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of 25 Fukushima Daiichi Nuclear Power Station - 2 <Main target process of the Decommissioning> Previous Future efforts Area efforts Phase 2 (until commencement of fuel debris rmoval) Phase 3 (until decommissioning completed) ～FY201

  33. Slide 33: Contaminated Water Management

    Contaminated Water Management 26 − 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. − The countermeasures for “Isolate water from contaminatio

  34. Slide 34: The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives

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

  35. Slide 35: Main Measures to Secure Safety - 1 [Outline]

    Main Measures to Secure Safety – 1 [Outline] 27  We promote the following measures to secure further safety after the Great East Japan Earthquake. I. Installation of flooding embankment III. Further enhancement of heat removal and III. Further enhancement of heat III. Further enhancement of heat re

  36. Slide 36: Main Measures to Secure Safety - 2 [Implementation Status]

    Main Measures to Secure Safety - 2 [Implementation Status] 28 As of As of July 27, 2016 October 21, 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

  37. Slide 37: Compliance Review under the New Regulatory Requirements - 1

    Compliance Review under the New Regulatory Requirements – 1 29 - In November 2013, the Nuclear Regulation Authority (NRA) started reviews for Kashiwazaki-Kariwa Nuclear Power Station Units 6 and 7 as to their compliance under the New Regulatory Requirements. - In August 2015, Kashiwazaki-Kariwa Nucl

  38. Slide 38: Compliance Review under the New Regulatory Requirements - 2

    30 Compliance Review under the New Regulatory Requirements - 2 ＜Review Process＞ NRA TEPCO Holdings July 8, 2013 September 27, 2013 Enforcement on New Submission of Application Application for permission for change in reactor Regulatory Requirements installation license Application for approval of co

  39. Slide 39: Other Initiatives

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

  40. Slide 40: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 31 <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 Busin

  41. Slide 41: Efforts towards Nuclear Reform - 1 - Framework for Nuclear Reform

    Efforts towards Nuclear Reform - 1 - Framework for Nuclear Reform 32 − 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 to create

  42. Slide 42: Efforts towards Nuclear Reform - 2 - Report on Status of the Nuclear Safety Reform Plan

    Efforts towards Nuclear Reform – 2 33 - Report on Status of the Nuclear Safety Reform Plan - The Nuclear Safety Reform Plan consists of 6 measures that compensate for the lack of “safety awareness”, “technological capability” and “dialogue-promoting capability” which are the underlying contributors

  43. Slide 43: Governance Structure after Transition to a Holding Company System

    Governance Structure after Transition to a Holding Company System 34  The Board of Directors of TEPCO Holdings (TEPCO HD) approves important management issues such as business management plans formulated by each Core Operating Company.  Each Core Operating Company operates its business autonomousl

  44. Slide 44: The Energy for Every Challenge

    T=PCO The Energy for Every Challenge

Tokyo Electric Power Company Holdings — Q1 FY2016 Earnings Presentation on 6ix