Tokyo Electric Power Company Holdings, Incorporated · TSE:9501
Tokyo Electric Power — FY2011 Earnings Presentation
49 slides from Tokyo Electric Power's earnings presentation, May 14, 2012
Slide 1: FY2011 Year-end Earnings Results
FY2011 Year-end Earnings Results (April 1, 2011 – March 31, 2012) Presentation Material Toshio Nishizawa President May 14, 2012 The Tokyo Electric Power Company, Inc. All Rights Reserved ©2012
Slide 2: Regarding Forward-Looking Statements (Performance Projections)
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 predictions abou
Slide 3: Overview of FY2011 Earnings Results
Ⅰ．Overview of FY2011 Earnings Results The Tokyo Electric Power Company, Inc. All Rights Reserved ©2012
Slide 4: Key Points of FY2011 Earnings Results
Key Points of FY2011 Earnings Results 1 Overview Both consolidated and non-consolidated operating revenues decreased. While unit sales prices rose from a year earlier under the fuel cost adjustment system, electricity sales volume significantly dropped especially in the first half. Ordinary inco
Slide 5: FY2011 Earnings Results Summary (Consolidated and Non-consolidated)
FY2011 Earnings Results Summary (Consolidated and Non-consolidated) 2 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion Yen) Comparison FY2011 (A) FY2010 (B) (A)-(B) (A)/(B)(%) Electricity Sales Volume (billion kWh) 268.2 293.4 -25.2 91.4 consolidated
Slide 6: FY2011 Business Performance - Electricity Sales Volume, Total Power Generated and Purchased
FY2011 Business Performance - 1 - Electricity Sales Volume, Total Power Generated and Purchased 3 Electricity Electricity Sales Sales Volume Volume (Units: Billion kWh, %) FY2011 FY2012 [FY 2011 Results] 1st 3rd 4th 2nd ○ Total electricity sales volume significantly Full Year Projection Half Quarter
Slide 7: FY2011 Business Performance - Comparison with Previous Fiscal Year Results
FY2011 Business Performance – 2 - Comparison with Previous Fiscal Year Results 4 (Unit: Billion Yen) FY2011 Actual (A) FY2010 Actual (B) Comparison (A)-(B) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Operating Revenues 5,349.4 5,107.7 5,368.5 5,146.3 -19
Slide 8: FY2011 Business Performance - Comparison with Previous Projection
FY2011 Business Performance – 3 - Comparison with Previous Projection 5 (Unit: Billion Yen) FY2011 Full-year Projection FY2011 Actual (A) (B) Comparison (A)-(B) (As of Feb. 13, 2012) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolidated Operating Revenues 5,349.4
Slide 9: Financial Impact of March 11 Earthquake [Extraordinary Income/Loss]
FY2011 Business Performance – 4 - Financial Impact of March 11 Earthquake [Extraordinary Income/Loss] 6 ◇Grants–in-aid from Nuclear Damage Compensation Facilitation Corporation [Extraordinary Income] (Unit: billion yen) FY2011 Cumulative Item FY2010 Amount 1st 9-month Period Full-year ○Grants-in-aid
Slide 10: FY2012 Business Performance Outlook - Key Factors Affecting Performance
FY2012 Business Performance Outlook [Full Year] - 1 - Key Factors Affecting Performance and Financial Impact 7 FY2012 FY2011 Key Factors Affecting Performance Full-year 1st Half Full-Year 【Ref.】Previous Projection Projection Actual Actual (as of Feb.13) Electricity Sales Volume (billion kWh) 272.3 1
Slide 11: FY2012 Business Performance Outlook - Comparison with Previous Fiscal Year
FY2012 Business Performance Outlook [Full Year] - 2 - Comparison with the Previous Fiscal Year Results 8 (Unit: Billion Yen) FY2012 Full-year Projection (As of May 14, 2012) (A) FY2011 Actual (B) Comparison (A)-(B) Consolidated Non-consolidated Consolidated Non-consolidated Consolidated Non-consolid
Slide 12: TEPCO's Dividend Policy
TEPCO’s Dividend Policy 9 Dividend DividendOutlook Outlookfor forFY2011 FY2011and andFY2012 FY2012 TEPCO paid out no interim dividend in FY2011. TEPCO has decided not to pay out for FY2011 year-end dividend. At this point, TEPCO forecasts that we won’t be capable of paying out FY2012 interim or
Slide 13: Fuel Consumption and Procurement
【Reference】 Fuel Consumption and Procurement 10 Fuel Fuel consumption consumption data data and and projection projection FY2008 FY2009 FY2010 FY2011 FY2012 Previous Actual Actual Actual Actual Outlook Outlook LNG (million tons) 18.97 18.51 19.46 22.88 22.67 23.27 Oil (million kl) 8.63 4.37 4.75 8.0
Slide 14: Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Units 1 through 4
Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4 11 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 Restoration
Slide 15: Mid-to-long Term Roadmap towards the Decommissioning (Continued)
Mid-to-long Term Roadmap towards the Decommissioning of Fukushima Daiichi Nuclear Power Station Units 1 through 4 (Continued) 12 3. 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
Slide 16: Implementation of the Streamlining Policy on Comprehensive Special Business Plan
Implementation of the Streamlining Policy on Comprehensive Special Business Plan 13 TEPCO aims to reduce its costs and expenditures by more than 3,365 billion yen in next 10 years, adding 656.5 billion yen to the original cost reduction target appeared in the previous Temporary Special Business Pl
Slide 17: Overview of the Application of Electricity Tariff Revision for Regulated Sector
Overview of the Application of Electricity Tariff Revision for Regulated Sector 14 Based on suggestions by METI‘s Specialists Meeting on Electricity Rating System, TEPCO has estimated its total costs of electricity business with the next 3-year average. (from FY2012 to FY2014) Cost reductions of
Slide 18: Assumptions on Rate-makings
【Reference】 Assumptions on Rate-makings 15 Electricity Sales Volume is revised downward by 6% from the previous tariff revision due to continued energy-saving after March 11 Earthquake. A part of our nuclear power plants is assumed to restart in the calculation. Power shortage due to a decrease
Slide 19: FY2011 Earnings Results (Detailed Information)
Ⅱ. FY2011 Earnings Results (Detailed Information) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2012
Slide 20: Statements of Income (Consolidated)
Statements of Income (Consolidated) 16 (Unit: Billion yen) FY2011 FY2010 Comparison (A) (B) (A)-(B) (A)/(B) (%) Operating Revenues 5,349.4 5,368.5 -19.0 99.6 Operating Expenses 5,621.9 4,968.9 653.0 113.1 Operating Income -272.5 399.6 -672.1 － Non-operating Revenues 52.1 76.3 -24.1 68.3 Investment G
Slide 21: Revenues Breakdown (Non-consolidated)
Revenues Breakdown (Non-consolidated) 17 (Unit: Billion yen) FY2011 FY2010 Comparison (A) (B) (A)-(B) (A)/(B) (%) Ordinary Revenues 5,184.3 5,203.5 -19.1 99.6 Operating Revenues 5,107.7 5,146.3 -38.5 99.3 Operating Revenues from Electric Power Business 4,995.6 5,064.6 -68.9 98.6 Electricity Sales Re
Slide 22: Expenses Breakdown (Non-consolidated)
Expenses Breakdown (Non-consolidated) 18 (Unit: Billion yen) FY2011 FY2010 Comparison (A) (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 5,592.7 4,932.4 660.2 113.4 Operating Expenses 5,426.9 4,789.6 637.2 113.3 Operating Expenses for ElectricPower Business 5,319.3 4,710.4 608.8 112.9 Personnel 366.8 431
Slide 23: Year-on-Year Comparison of Ordinary Expenses - 1 (Non-consolidated)
Year-on-Year Comparison of Ordinary Expenses – 1 (Non-consolidated) 19 Personnel Expenses (¥431.1 billion to ¥366.8 billion) -¥64.2 billion Salary and benefits (¥299.4 billion to ¥265.8 billion) -¥33.6 billion Retirement benefits (¥46.8 billion to ¥25.0 billion) -¥21.7 billion Decrease in amortizati
Slide 24: Year-on-Year Comparison of Ordinary Expenses - 2 (Non-consolidated)
Year-on-Year Comparison of Ordinary Expenses – 2 (Non-consolidated) 20 Maintenance Expenses (¥412.0 billion to ¥278.8 billion) -¥133.2 billion Generation facilities (¥188.7 billion to ¥105.4 billion) -¥83.2 billion Hydroelectric power (¥12.5 billion to ¥9.1 billion) -¥3.3 billion Thermal power (¥73.
Slide 25: Year-on-Year Comparison of Ordinary Expenses - 3 (Non-consolidated)
Year-on-Year Comparison of Ordinary Expenses – 3 (Non-consolidated) 21 Power Purchasing Cost (¥703.5 billion to ¥780.8 billion) +¥77.3 billion Power purchased from other utilities (¥201.2 billion to ¥176.8 billion) Factors for Increase/Decrease -¥24.4 billion Power purchased from other suppliers: In
Slide 26: Balance Sheets (Consolidated and Non-consolidated)
Balance Sheets (Consolidated and Non-consolidated) 22 (Upper and lower rows show consolidated and non-consolidated figures, respectively) (Unit: Billion yen) Mar.31, Mar.31, Comparison 2012 (A) 2011 (B) (A)-(B) (A)/(B) (%) (Consolidated) 15,536.4 14,790.3 746.1 105.0 Total Assets (Non-consolidated)
Slide 27: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows 23 (Unit: Billion yen) Comparison FY2011 (A) FY2010 (B) (A)-(B) Cash flow from operating activities -2.8 988.7 -991.6 Income / loss before income taxes and minority interests -753.7 -766.1 12.3 Depreciation and amortization 686.5 702.1 -15.6 Loss on natural disa
Slide 28: Schedules for Corporate Bond Redemption
【Reference】 Schedules for Corporate Bond Redemption 24 (billion yen) Amount at Maturity (as of March 31, 2012) 800 747.9 Foreign currency-denominated 700 625.9 Domestic 585.5 600 134.2 500 446.4 438.1 451.8 400 366.8 25.0 300 282.5 210.0 200 160.0 100 30.0 35.0 25.0 20.0 0 1 2012 2 2014 2013 3 2015
Slide 29: Capital Expenditures (Consolidated and Non-consolidated)
Capital Expenditures (Consolidated and Non-consolidated) 25 (Unit: Billion Yen) FY2011 Actual FY2010 Actual Comparison (A) (B) (A)-(B) Hydroelectric/Renewable energy generation (Non-consolidated) 15.3 17.9 -2.6 Thermal power generation (Non-consolidated) 268.3 122.9 145.4 Nuclear power generation (N
Slide 30: Segment Information
Segment Information 26 (Unit: Billion yen) Major subsidiaries in "Others" segment (Unit: Billion yen) FY2011 FY2010 Comparison Operating Revenues Operating Income YOY YOY (A) (B) (A)-(B) (A)/(B) (%) Increase Increase Operating Revenues 5,349.4 5,368.5 -19.0 99.6 TEPCO SYSTEMS CORPORATION 41.9 -12.2
Slide 31: Gas Supply Business
【Reference】 27 Gas Supply Business Operating Operating Performance Performance (Billion yen) Revenues Operating Income 97.0 86.8 66.7 <FY2011 Actual Performance> Operating revenues: Increased 30.2 billion yen to 97.0 billion yen, 2.4 reflecting a sales volume increase and rising LNG retail prices. -
Slide 32: Overseas Business
【Reference】 28 Overseas Business TEPCO (Investment Company or Project Name1 Location Output Start of commercial operation, etc. Investment2 ratio) Chang Bin & Fong Der Project Taiwan ¥5.1 billion ( 19.5% ) 490MW, 980MW Commenced operations in Mar. 2004 Starbuck Project Taiwan ¥2.1 billion ( 22.7% )
Slide 33: Seasonal Breakdown of Electricity Sales
【Reference】 Seasonal Breakdown of Electricity Sales - Sales Volume, Total Power Generated and Purchased 29 (Units: Billion kWh, %) FY2010 FY2011 Electricity Electricity Sales Sales Volume Volume 3rd 4th 1st Half 2nd Half Full Year 1st Half Jan. Feb. Mar. 2nd Half Full Year Quarter Quarter 57.01 58.5
Slide 34: Recent Demand Trend of Large-scale Industries
【Reference】 30 Recent Demand Trend of Large-scale Industries Electricity sales volume to large-scale industrial customers in FY2011 shrank 6.1% year on year due to a significant drop in industrial production level caused by the Great East Japan Earthquake, power usage restriction by Government, an
Slide 35: Facility Construction Plans - from FY2012 Power Supply Plan
【Reference】 Facility Construction Plans – from FY2012 Power Supply Plan 31 Start of commercial operation Start of commercial operation Location/Name Output/Scale /Disuse (previous plan) Fukushima Daiichi Units 7 and 8 1.38 million kW ea. Cancelled October 2016, October 2017 Nuclear March 2017 Higash
Slide 36: Historical Prices of CIF Crude Oil, Fuel Coal and LNG
【Reference】 Historical Prices of CIF Crude Oil, Fuel Coal and LNG 32 ($/b・t) ($/t) 160 900 Crude Oil 140 800 Fuel Coal LNG (Right-hand Scale) 700 120 600 100 500 80 400 60 300 40 200 20 100 Note: The numbers above are calculated by TEPCO based on CIF stats and temporary exchange rates. 0 0 Apr- May
Slide 37: Shaping concrete steps of the electric power industry reform
【Reference】 Overview of Ongoing Discussions on Future Energy Policy 33 Basic Issue Committee Task Force/Specialized Committee Study Group for Energy and Environmental Council Advisory Committee for Natural Atomic Energy Committee for Reformation of Electric Power Enforcement of Inter- National Polic
Slide 38: Act of Special Measures on Renewable Energy
【Reference】 Act of Special Measures on Renewable Energy 34 Last August, so-called Act of Special Measures on Renewable Energy was approved by the Diet. The act covers new feed-in tariff system applied for all kinds of renewable energy and will be in effect on July 1 in 2012, after its details su
Slide 39: The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives
【Reference】 The Current Status of Fukushima Daiichi Nuclear Power Stations and Future Initiatives The Tokyo Electric Power Company, Inc. All Rights Reserved ©2012
Slide 40: Current Situation and Status of Fukushima Daiichi Nuclear Power Station
Current Situation and Status of Fukushima Daiichi Nuclear Power Station 35 (as of 5:00AM May 11) At Units 1 through 3, we continue circulatory water-cooling operations for the reactors, utilizing contaminated water as coolant of the reactors. The temperature of the bottom of each of Units 1 and 3
Slide 41: Our Commitment to Nuclear Damage Compensation
【Reference】 Our Commitment to Nuclear Damage Compensation 36 To facilitate prompt and fair compensation for nuclear damages, TEPCO continues to set and announce our own detailed compensation guidelines and procedures to individuals and business entities based on Government’s "Interim Guideline" re
Slide 42: Decontamination Works in the Surrounding Areas
【Reference】 Decontamination Works in the Surrounding Areas 37 "Act on Special Measures for Coping with Radioactive Pollution" was approved last August and fully came into force on January 1, 2012. So far, Government has appropriated approximately 1.15 trillion yen for funding decontamination works
Slide 43: Financial Assistance of Nuclear Damage Compensation Facilitation Corporation
【Reference】 Financial Assistance of Nuclear Damage Compensation Facilitation Corporation 38 After a "bill concerning Nuclear Damage Compensation Facilitation Corporation" passed the Diet, the Corporation was officially established last September. To get a financial assistance of the Corporation,
Slide 44: Law concerning Formation of a Nuclear Damage Compensation Facilitation Corporation
【Reference】 Law concerning Formation of a Nuclear Damage Compensation Facilitation Corporation 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 o
Slide 45: Investigation on Fukushima Nuclear Accidents by Government and Diet
【Reference】 Investigation on Fukushima Nuclear Accidents by Government and Diet 40 <National Government> Government has established "Investigation Committee on the Accident at the Fukushima Nuclear Power Stations of Tokyo Electric Power Company" under the direct control of Government. The establis
Slide 46: The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives
【Reference】 The Current Status of Kashiwazaki-Kariwa Nuclear Power Station and Future Initiatives (As of May 11, 2012 unless otherwise noted) The Tokyo Electric Power Company, Inc. All Rights Reserved ©2012
Slide 47: Earthquake-Resistance and Safety
Overview of Status of Initiatives 41 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 （Initial submission date） (Jul. 18, 2008) (Sep. 18, 2008) (Jul. 18, 2008) (Sep. 18,
Slide 48: Basic Equipment Inspections
Status of Progress at Each Unit in Facility Soundness Evaluation 42 ◆ Status of Progress in 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 Apr.
Slide 49: Reinforcement Work
【Earthquake-Resistance and Safety Improvement Initiatives】 Reinforcement Work 43 ◆ TEPCO is conducting works as needed to reinforce earthquake-resistant capabilities of key facilities. ◆ Current schedule of works planned and in progress Note: Excludes preparatory work Year 2010 Year 2011 Year 2012 O
Tokyo Electric Power Company Holdings — FY2011 Earnings Presentation on 6ix