Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q1 FY2017 Earnings Presentation

49 slides from Tokyo Electric Power's earnings presentation, Jul 28, 2017

  1. Slide 1: FY2017 1st Quarter Financial Results (April 1 – June 30, 2017)

    FY2017 1st Quarter Financial Results (April 1 – June 30, 2017) 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 FY2017 1st Quarter Financial Results

    Overview of FY2017 1st Quarter Financial Results (Released on July 28, 2017) ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  4. Slide 4: Key Points of FY2017 1st Quarter Financial Results

    Key Points of FY2017 1st Quarter Financial Results 1 < FY2017 1st Quarter Financial Results >  Although electricity sales revenue decreased due to a decrease in electricity sales volume, ordinary revenue increased due to an increase in grants under Act on Procurement of Renewable Electric Energy et

  5. Slide 5: 1. Consolidated Financial Results

    1. Consolidated Financial Results 2 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (% ) Operating Revenue 1,313.3 1,264.9 48.3 103.8 Operating Income 67.6 143.6 -75.9 47.1 Ordinary Income 55.6 136.7 -81.1 40.7 Extraordinary Income 128.6 - 128.6 - Extraordinary L

  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) FY2017 FY2016 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Lighting 17.8 19.0 -1.1 94.1 Power 36.4 37.3 -0.9 97.6 Total 54.3 56.3 -2.0 96.4 * Excluding islands. Including nation-wi

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

    3. Ordinary Revenue (Consolidated) 4 (Unit: Billion Yen) FY2017 FY2016 Comparison ・Decrease in Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) electricity sales (Operating Revenue) 1,313.3 1,264.9 48.3 103.8 volume: - 40.0 ・Effect of fuel cost adjustments: + 4.0 Electricity Sales Revenue 1,035.2 1,064.4

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

    4. Ordinary Expenses (Consolidated) 5 (Unit: Billion Yen) FY2017 FY2016 Comparison ・Effect of price fluctuations Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) of exchange rate, fuel Personnel Expenses 85.4 88.3 -2.8 96.8 prices (CIF) and others: + 66.0 Fuel Expenses 277.0 227.8 49.1 121.6 ・Decrease in

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

    5. Extraordinary Income/ Loss (Consolidated) 6 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Jun Apr-Jun Extraordinary Income 128.6 － 128.6 Grants-in-aid from NDF* 128.6 － 128.6 Extraordinary Loss 36.0 119.9 -83.8 Expenses for Nuclear Damage Compensation 36.0 119.9 -83.8 Extraordinary Income/ Los

  10. Slide 10: 6. Consolidated Financial Position

    6. Consolidated Financial Position 7 Total assets decreased 220.6 billion yen primarily due to a decrease in cash and deposits. Total liabilities decreased 342.3 billion yen primarily due to a decrease in provision for nuclear damage compensation. Equity ratio improved by 1.3 points. Balance Shee

  11. Slide 11: 7. FY2017 Full-Year Financial Forecasts

    7. FY2017 Full-Year Financial Forecasts 8 (Unit: Billion Yen) FY2017 Projections FY2017 Projections (released on Jul. 28, (released on May 11, FY2016 Results 2017) 2017) Operating Revenue 5,750 5,750 5,357.7 Ordinary Income 200 200 227.6 Extraordinary Income/ Loss 98 98 -80.6 Net Income attributable

  12. Slide 12: 8. FY2017 Full-Year Financial Forecasts (Key Factors/Financial Impact)

    8. FY2017 Full-Year Financial Forecasts 9 (Key Factors Affecting Performance/ Financial Impact) Key Factors Affecting Performance FY2017 Projections FY2017 Projections (released on Jul. 28, (released on May 11, FY2016 Results 2017) 2017) Electricity Sales Volume (billion kWh) 235.2 234.9 241.5 Crude

  13. Slide 13: Supplemental Material

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

  14. Slide 14: Table of Contents

    Table of Contents Financial Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 10 Current Situation and Status of Units 1 through 4 25 Breakdown of Consolidated Ordinary Revenue 11 Overview of the Mid-to-long Term Roadmap

  15. Slide 15: FY2017 1st Quarter Financial Results Detailed Information

    FY2017 1st Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  16. Slide 16: Consolidated Statements of Income

    10 Consolidated Statements of Income (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Operating Revenue 1,313.3 1,264.9 48.3 103.8 Operating Expenses 1,245.7 1,121.3 124.3 111.1 Operating Income 67.6 143.6 -75.9 47.1 Non-operating Revenue 12.5 22.9 -10.3 54.8

  17. Slide 17: Breakdown of Consolidated Ordinary Revenue

    Breakdown of Consolidated Ordinary Revenue 11 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Ordinary Revenue 1,325.8 1,287.8 37.9 102.9 Operating Revenue 1,313.3 1,264.9 48.3 103.8 Operating Revenue from Electric Power Business 1,245.5 1,210.3 35.2 102.9 El

  18. Slide 18: Breakdown of Consolidated Ordinary Expenses

    Breakdown of Consolidated Ordinary Expenses 12 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 1,270.2 1,151.1 119.0 110.3 Operating Expenses 1,245.7 1,121.3 124.3 111.1 Operating Expenses for Electric Power Business 1,183.3 1,077.0 106.3 10

  19. Slide 19: Year-on-Year Comparison of Consolidated Ordinary Expenses - 1

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 1 13 Personnel expenses (¥88.3 billion to ¥85.4 billion) - ¥2.8 billion Salary and benefits (¥66.3 billion to ¥62.6 billion) - ¥3.6 billion Retirement benefits (¥4.4 billion to ¥6.6 billion) +¥2.1 billion Amortization of actuarial differenc

  20. Slide 20: Year-on-Year Comparison of Consolidated Ordinary Expenses - 2

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 2 14 Maintenance expenses (¥69.8 billion to ¥65.4 billion) - ¥4.4 billion Generation facilities (¥18.2 billion to ¥22.7 billion) +¥4.5 billion Hydroelectric power (¥1.1 billion to ¥1.7 billion) +¥0.5 billion Thermal power (¥10.9 billion to

  21. Slide 21: Year-on-Year Comparison of Consolidated Ordinary Expenses - 3

    15 Year-on-Year Comparison of Consolidated Ordinary Expenses - 3 Taxes and other public charges (¥72.1 billion to ¥72.3 billion) +¥0.2 billion Enterprise tax (¥12.6 billion to ¥12.0 billion) - ¥0.5 billion Charge for occupancy of roads (¥6.8 billion to ¥7.2 billion) +¥0.4 billion Nuclear power back-

  22. Slide 22: Increase/Decrease of Consolidated Business Performance

    Increase/ Decrease of - Year on Year Comparison 16 Consolidated Business Performance Ordinary income decreased 81.1 billion yen to 55.6 billion yen. Ordinary Income (Unit: Billion Yen) Factors related to Power Supply and Demand Others (including renewable energy) +29.7 - 110.8 Foreign Effect of kWh

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

    Financial Impact of the Great East Japan Earthquake 17 (Unit: Billion Yen) FY2017 Cumulative Item FY2010 to FY2016 Apr-Jun Amount ◇Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation ○Grants-in-aid based on Nuclear Damage Compensation and Decommissioning *1 *2

  24. Slide 24: Consolidated Balance Sheets

    Consolidated Balance Sheets 18 <Interest-bearing debt outstanding> (Unit: Billion Yen) (Unit: Billion Yen) Jun. 30 Mar. 31 Comparison Jun. 30 Mar. 31 2017 (A) 2017 (B) (A)-(B) (A)/(B) (%) (A)-(B) 2017 (A) 2017 (B) Total Assets 12,056.9 12,277.6 -220.6 98.2 Bonds 3,028.1 3,205.9 -177.8 Fixed Assets 1

  25. Slide 25: Segment Information

    Segment Information 19 (Unit: Billion Yen) FY2017 FY2016 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) Operating Revenue 1,313.3 1,264.9 48.3 103.8 202.1 231.1 -28.9 87.5 Holdings 11.4 15.5 -4.1 73.4 382.3 417.4 -35.0 91.6 Fuel & Power 4.2 7.6 -3.3 56.3 396.8 368.7 28.0 107.6 Power Grid 77.0 52

  26. Slide 26: [Reference] Key Factors Affecting Performance and Financial Impact

    [Reference] Key Factors Affecting Performance and Financial Impact 20 Key Factors Affecting Performance Financial Impact (Sensitivity) （Unit: Billion Yen） FY2017 【Reference】 FY2017 【Reference】 Apr-Jun Full-year Projections FY2016 Actual Performance Full-year Projections FY2016 Full-year Results Actu

  27. Slide 27: [Reference] Seasonal Breakdown of Electricity Sales Volume and Total Power Generated

    [Reference] Seasonal Breakdown of Electricity Sales Volume and 21 Total Power Generated Electricity Sales Volume Unit: Billion kWh FY2017 Apr May Jun Apr-Jun Lighting 7.17 5.75 4.91 17.83 Power 12.12 11.80 12.51 36.43 Total 19.29 17.55 17.42 54.27 FY2016 [Ref.]Year-on-year Apr May Jun Apr-Jun Compar

  28. Slide 28: [Reference] Fuel Consumption

    [Reference] Fuel Consumption 22 Fuel Consumption Data 【Reference】 FY2014 FY2015 FY2016 FY2017 FY2016 Actual Actual Actual Apr-Jun Apr-Jun LNG(million tons) 23.49 21.55 21.06 4.20 4.66 Oil (million kｌ) 3.10 2.48 2.05 0.13 0.51 Coal (million tons) 7.53 8.34 8.14 2.14 1.82 Note: The oil data is total o

  29. Slide 29: [Reference] Feed-in Tariff Scheme for Renewable Energy

    [Reference] Feed-in Tariff Scheme for Renewable Energy 23 (Purchase Cost Collection Flow) （FY 2017 Apr.- Jun.) Avoidable Cost 30.0 billion yen (Green Investment Promotion Organization) Cost Bearing Adjustment Organization Generators Renewable Energy Subsidy Purchase Cost 103.2 billion yen 133.2 bill

  30. Slide 30: [Reference] Schedules for Public Bond Redemption

    [Reference] Schedules for Public Bond Redemption 24 (Billion Yen) Amount at Maturity (As of Jun. 30, 2017) TEPCO Public Bond TEPCO Power Grid Public Bond (FY) Note: The amount redeemed for Apr.- Jun. of fiscal 2017 totaled 50.0 billion yen. ©Tokyo Electric Power Company Holdings, Inc. All Rights Res

  31. Slide 31: The Current Status of Fukushima Daiichi Nuclear Power Station and Future Initiatives

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

  32. Slide 32: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 25 - 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

  33. Slide 33: Overview of the Mid-to-long Term Roadmap - 1

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of 26 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

  34. Slide 34: Overview of the Mid-to-long Term Roadmap - 2

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of 27 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

  35. Slide 35: Contaminated Water Management

    Contaminated Water Management 28 − 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. − Based on the result of evaluation of the effect of closu

  36. Slide 36: 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.

  37. Slide 37: Main Measures to Secure Safety - Outline

    Main Measures to Secure Safety – 1 [Outline] 29  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

  38. Slide 38: Main Measures to Secure Safety - Implementation Status

    Main Measures to Secure Safety - 2 [Implementation Status] 30 As of July 13, 2017 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

  39. Slide 39: Compliance Review under the New Regulatory Requirements - 1

    Compliance Review under the New Regulatory Requirements – 1 31 Latest Review Status ・On September 27, 2013, an application was presented requesting verification of compliance with new regulatory requirements for Units 6 and 7. ・After the compliance verification application was presented, an amended

  40. Slide 40: Compliance Review under the New Regulatory Requirements - 2

    32 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

  41. Slide 41: Other Initiatives

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

  42. Slide 42: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 33 <Cost reduction> − In addition to the cost reductions that has been made under the New Comprehensive Special Business Plan (TEPCO *1 : ¥4.8 trillion/10 years), TEPCO will execute, under the Revised New Comprehensive Special Business Plan, unprecedented an

  43. Slide 43: Efforts towards Nuclear Reform - 1

    Efforts towards Nuclear Reform - 1 34 - Framework for Nuclear Reform − Since April 2013, TEPCO has advanced the Nuclear Safety Reform Plan so that it may realize its determination that “the Fukushima nuclear accident will never be forgotten and we will be a nuclear operator which continues to create

  44. Slide 44: Efforts towards Nuclear Reform - 2

    Efforts towards Nuclear Reform – 2 35 - 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 f

  45. Slide 45: Main Efforts to Increase Corporate Value - 1

    Main Efforts to Increase Corporate Value -1 36 <TEPCO Holdings> May 17, 2017: Launch of “neighborhood watch using IoT technology” in Tokyo’s Shibuya ward (in cooperation with the local government, the program aims to provide a safe and secure living environment for senior citizens and children) July

  46. Slide 46: Main Efforts to Increase Corporate Value - 2

    Main Efforts to Increase Corporate Value -2 37 <TEPCO Power Grid> May 23, 2017: Joint planning and development begun on information distribution and other projects using ground power distribution equipment with TEPCO Town Planning Co., Ltd., Panasonic Corporation, and Panasonic System Solutions Japa

  47. Slide 47: Scope of the Comprehensive Alliance and Post-Integration Initiatives

    Scope of the Comprehensive Alliance and Post-Integration Initiatives 38  On June 8, 2017, TEPCO Fuel & Power, Inc., and Chubu Electric Power Co., Inc. concluded a joint-venture agreement with the aim of integrating their fuel receiving/storage and gas transportation businesses, and existing thermal

  48. Slide 48: [Reference] Integration Synergy Effects

    [Reference] Integration Synergy Effects 39 ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

  49. Slide 49: T=PCO

    T=PCO The Energy for Every Challenge

Tokyo Electric Power Company Holdings — Q1 FY2017 Earnings Presentation on 6ix