Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — FY2016 Earnings Presentation

50 slides from Tokyo Electric Power's earnings presentation, Apr 28, 2017

1. Slide 1: FY2016 Financial Results

   FY2016 Financial Results (April 1, 2016 – March 31, 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 FY2016 Financial Results

   Overview of FY2016 Financial Results (Released on April 28, 2017) ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

4. Slide 4: Key Points of FY2016 Financial Results

   Key Points of FY2016 Financial Results 1 < FY2016 Financial Results >  Ordinary revenue decreased for the second consecutive year due to a decrease in the unit price of electricity resulting from fuel cost adjustments.  Ordinary expenses decreased due to the fall of fuel prices and the continued e

5. Slide 5: Consolidated Financial Results

   1. Consolidated Financial Results 2 (Unit: Billion Yen) Comparison FY2016 (A) FY2015 (B) (A)-(B) (A)/(B) (% ) Operating Revenue 5,357.7 6,069.9 -712.1 88.3 Operating Income 258.6 372.2 -113.5 69.5 Ordinary Income 227.6 325.9 -98.3 69.8 Extraordinary Income 330.6 773.0 -442.3 - Extraordinary Loss 411

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

   2. Electricity Sales Volume/ Key Factors Affecting Performance 3 Electricity Sales Volume (Unit: Billion kWh) Comparison FY2016* (A) FY2015 (B) (A)-(B) (A)/(B) (%) Lighting 86.4 89.4 -3.0 96.6 Power 155.1 157.7 -2.5 98.4 Total 241.5 247.1 -5.6 97.8 * Excluding islands. Including nation-wide sales. K

7. Slide 7: Ordinary Revenue (Consolidated)

   3. Ordinary Revenue (Consolidated) 4 (Unit: Billion Yen) Comparison FY2016 (A) FY2015 (B) (A)-(B) (A)/(B) (%) ・Effect of fuel cost (Operating Revenue) 5,357.7 6,069.9 -712.1 88.3 adjustments -772.0 Electricity Sales Revenue 4,426.2 5,237.0 -810.8 84.5 Lighting 1,990.9 2,295.3 -304.4 86.7 Total of TE

8. Slide 8: Ordinary Expenses (Consolidated)

   4. Ordinary Expenses (Consolidated) 5 ・Effect of price fluctuations (Unit: Billion Yen) of exchange rate, fuel Comparison prices (CIF) and others FY2016 (A) FY2015 (B) -440.0 (A)-(B) (A)/(B) (%) ・Decrease in thermal power Personnel Expenses 332.9 369.3 -36.3 90.1 generation -13.0 Fuel Expenses 1,162

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

   5. Extraordinary Income/ Loss (Consolidated) 6 (Unit: Billion Yen) FY2016 FY2015 Comparison Extraordinary Income 330.6 773.0 -442.3 Grants-in-aid from NDF* 294.2 699.7 -405.5 Gain on change in equity 36.4 12.2 24.2 Gain on revision of retirement benefit plan - 61.0 -61.0 Extraordinary Loss 411.3 911

10. Slide 10: Consolidated Financial Position

    6. Consolidated Financial Position 7 Total assets decreased 1,382.1 billion yen primarily due to contribution of reserve fund for reprocessing of irradiated nuclear fuel to Nuclear Reprocessing Organization of Japan. Total liabilities decreased 1,512.7 billion yen primarily due to reversal of prov

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 26 Breakdown of Consolidated Ordinary Revenues 9 Overview of the Mid-to-long Term Roadmap-

13. Slide 13: FY2016 Financial Results Detailed Information

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

14. Slide 14: Consolidated Statements of Income

    8 Consolidated Statements of Income (Unit: Billion Yen) Comparison FY2016 (A) FY2015(B) (A)-(B) (A)/(B) (%) Operating Revenues 5,357.7 6,069.9 -712.1 88.3 Operating Expenses 5,099.0 5,697.6 -598.6 89.5 Operating Income 258.6 372.2 -113.5 69.5 Non-operating Revenues 62.2 71.1 -8.8 87.5 Investment Gai

15. Slide 15: Breakdown of Consolidated Ordinary Revenues

    Breakdown of Consolidated Ordinary Revenues 9 (Unit: Billion Yen) Comparison FY2016 (A) FY2015 (B) (A)-(B) (A)/(B) (%) Ordinary Revenues 5,420.0 6,141.0 -721.0 88.3 Operating Revenues 5,357.7 6,069.9 -712.1 88.3 Operating Revenues from Electric Power Business 5,100.7 5,791.3 -690.5 88.1 Electricity

16. Slide 16: Breakdown of Consolidated Ordinary Expenses

    Breakdown of Consolidated Ordinary Expenses 10 (Unit: Billion Yen) Comparison FY2016 (A) FY2015 (B) (A)-(B) (A)/(B) (%) Ordinary Expenses 5,192.4 5,815.1 -622.7 89.3 Operating Expenses 5,099.0 5,697.6 -598.6 89.5 Operating Expenses for Electric Power Business 4,878.7 5,469.7 -590.9 89.2 Personnel 33

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

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 1 11 Personnel expenses (¥369.3 billion to ¥332.9 billion) - ¥36.3 billion Salary and benefits (¥258.3 billion to ¥254.5 billion) - ¥3.7 billion Retirement benefits (¥43.3 billion to ¥14.5 billion) - ¥28.7 billion Amortization of actuarial

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

    Year-on-Year Comparison of Consolidated Ordinary Expenses - 2 12 Maintenance expenses (¥389.9 billion to ¥319.9 billion) -¥70.0 billion Generation facilities (¥168.0 billion to ¥118.8 billion) - ¥49.1billion Hydroelectric power (¥13.7 billion to ¥8.0 billion) Main Factors for Increase/ Decrease - ¥5

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

    13 Year-on-Year Comparison of Consolidated Ordinary Expenses - 3 Taxes and other public charges (¥306.7 billion to ¥300.4 billion) - ¥6.2 billion Enterprise tax (¥59.3 billion to ¥52.0 billion) -¥7.3 billion Charge for occupancy of roads (¥27.1 billion to ¥28.5 billion) +¥1.4 billion Nuclear power b

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

    Increase/ Decrease of - Year on Year Comparison 14 Consolidated Business Performance Ordinary income decreased 98.3 billion yen to 227.6 billion yen. Ordinary Income (Unit: Billion Yen) Factors related to Power Supply and Demand Others (including renewable energy) +296.6 Decrease - 394.9 in Profits

21. Slide 21: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan Earthquake 15 (Unit: Billion Yen) Cumulative Item FY 2010 to FY 2015 FY2016 Amount ◇Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation ○Grants-in-aid based on Nuclear Damage Compensation and Decommissioning *1 *2 Facil

22. Slide 22: Consolidated Balance Sheets

    Consolidated Balance Sheets 16 <Interest-bearing debt outstanding> (Unit: Billion Yen) (Unit: Billion Yen) Mar. 31 Mar. 31 Comparison Mar. 31 Mar. 31 2017 (A) 2016 (B) (A)-(B) (A)/(B) (%) (A)-(B) 2017 (A) 2016 (B) Total Assets 12,277.6 13,659.7 -1,382.1 89.9 Bonds 3,205.9 3,480.6 -274.7 Fixed Assets

23. Slide 23: Consolidated Statements of Cash Flows

    Consolidated Statements of Cash Flows 17 (Unit: Billion Yen) FY2016 FY2015 Comparison (A) (B) (A)-(B) Cash flow from operating activities 783.0 1,077.5 -294.4 Income / loss before income taxes and minority interests 146.4 186.6 -40.1 Depreciation and amortization 564.2 621.9 -57.6 Interest expenses

24. Slide 24: Overview of Consolidated Cash Flows

    Overview of Consolidated Cash Flows - Year on Year Comparison 18  Cash and cash equivalents as of March 31, 2017 decreased 399.6 billion yen to 940.2 billion yen. - Cash flow from operating activities increased 783.0 billion yen mainly due to income before income taxes and minority interests - Cash

25. Slide 25: Segment Information

    Segment Information 19 (Unit: Billion Yen) Comparison Comparison FY2016(A) FY2015(B) FY2016(A) FY2015(B) (A)-(B) (A)/(B) (%) (A)-(B) (A)/(B) (%) Operating Revenues 5,357.7 6,069.9 -712.1 88.3 Assets 12,277.6 13,659.7 -1,382.1 89.9 918.0 745.3 172.7 123.2 Holdings 11,229.9 6,339.9 4,890.0 177.1 Holdi

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) [Ref.] FY2016 [Ref.] FY2017 FY2016 FY2017 FY2015 Actual Actual FY2015 Actual Full-year Projection Actual Performance Full-year Projection Perform

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 FY2016 Apr-Sep Oct-Dec Jan Feb Mar Jan-Mar Full year Lighting 39.90 19.98 9.36 8.99 8.16 26.50 86.38 Power 79.68 37.56 12.61 12.80 12.49 37.90 155.15 Total 119.58 57.55

28. Slide 28: [Reference] Fuel Consumption

    [Reference] Fuel Consumption 22 Fuel Consumption Data FY2014 FY2015 FY2016 Actual Actual Actual LNG(million tons) 23.49 21.55 21.06 Oil (million kｌ) 3.10 2.48 2.05 Coal (million tons) 7.53 8.34 8.14 Note: The oil data is total of crude oil and heavy oil, not including gas oil.The coal data is total

29. Slide 29: [Reference] Gas Supply Business

    [Reference] Gas Supply Business 23 Sales Volume Revenues (Million ton) (Billion yen) 1.51 (FY) <FY2016 Actual Performance> Revenues: Despite increased sales volume, decreased 19.3 billion yen to 71.2 billion yen mainly due to decreased LNG price. Operating expenses: Decreased 13.0 billion yen to 65.

30. Slide 30: [Reference] Feed-in Tariff Scheme for Renewable Energy

    [Reference] Feed-in Tariff Scheme for Renewable Energy 24 (Purchase Cost Collection Flow) （FY 2016) Avoidable Cost 75.0 billion yen (Green Investment Promotion Organization) Cost Bearing Adjustment Organization Generators Renewable Energy Subsidy Purchase Cost 294.0 billion yen 369.0 billion yen (Re

31. Slide 31: [Reference] Schedules for Public Bond Redemption

    [Reference] Schedules for Public Bond Redemption 25 (Billion Yen) Amount at Maturity (As of Mar. 31, 2017) TEPCO Public Bond TEPCO Power Grid Public Bond (FY) Note: The amount redeemed for fiscal 2016 totaled 366.8 billion yen. ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

32. Slide 32: 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.

33. Slide 33: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 26 - 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

34. Slide 34: Overview of the Mid-to-long Term Roadmap - 1

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

35. Slide 35: Overview of the Mid-to-long Term Roadmap - 2

    Overview of the Mid-to-long Term Roadmap towards the Decommissioning of 28 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

36. Slide 36: Contaminated Water Management

    Contaminated Water Management 29 − 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. − Towards conclusive closure of land-side frozen impermeab

37. Slide 37: 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.

38. Slide 38: Main Measures to Secure Safety - Outline

    Main Measures to Secure Safety – 1 [Outline] 30  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

39. Slide 39: Main Measures to Secure Safety - Implementation Status

    Main Measures to Secure Safety - 2 [Implementation Status] 31 As of April 25, 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

40. Slide 40: Compliance Review under the New Regulatory Requirements - 1

    Compliance Review under the New Regulatory Requirements – 1 32 - As the Nuclear Regulation Authority (NRA) implemented the new regulatory standards in July 2013, TEPCO filed an application for review of compliance of our Units 6 and 7 with the new standards in September of the same year. From Novemb

41. Slide 41: Compliance Review under the New Regulatory Requirements - 2

    33 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

42. Slide 42: Other Initiatives

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

43. Slide 43: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 34 <Cost reduction> − In the New Comprehensive Special Business Plan, TEPCO* and its subsidiaries & affiliated companies will implement further cost reduction of 1,419.4 billion yen and 108.5 billion yen, respectively from the previous Comprehensive Special

44. Slide 44: Efforts towards Nuclear Reform - Framework for Nuclear Reform

    Efforts towards Nuclear Reform - 1 35 - Framework for Nuclear Reform − 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

45. Slide 45: Efforts towards Nuclear Reform - 2

    Efforts towards Nuclear Reform – 2 36 - 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

46. Slide 46: Main Efforts to Increase Corporate Value - 1

    Main Efforts to Increase Corporate Value -1 37 <TEPCO Holdings> February 13, 2017 Develop and sell high efficient heat pump air heater, “Neppu-ton,” with Mitsubishi Heavy Industries Thermal Systems, Ltd., the Kansai Electric Power Company, and Chubu Electric Power Company. February 14, 2017 Hold an

47. Slide 47: Main Efforts to Increase Corporate Value - 2

    Main Efforts to Increase Corporate Value -2 38 <TEPCO Power Grid> April 5, 2017 Reach a business alliance agreement with TOSHIBA CORPORATION, McAfee, Inc., NTT DATA Corporation, TAKAOKA TOKO CO., LTD., and NIPPON KOEI CO., LTD. to undertake power system monitoring & control systems and peripheral te

48. Slide 48: Conclusion of Basic Agreement on Integration of Existing Thermal Power Generation Businesses

    Conclusion of Basic Agreement on Integration of 39 Existing Thermal Power Generation Businesses  On March 28, 2017, TEPCO Fuel & Power, Inc. ("TEPCO Fuel & Power"), and Chubu Electric Power Co., Inc. ("Chubu Electric") concluded a basic agreement with the aim of integrating their fuel receipt/ stor

49. Slide 49: [Reference] Overseas IPP and Fuel Projects of JERA Group

    [Reference] Overseas IPP and Fuel Projects of JERA Group 40 (As of the end of April, 2017) Netherlands Canada • Rietlanden Coal Terminal • Goreway Gas Thermal IPP Oman U.A.E. • Sur Gas Thermal IPP US • Umm Al Nar Gas Taiwan • Tenaska Gas Thermal IPP Thermal IWPP India • Chang Bin, Fong Der, • Carrol

50. Slide 50: TEPCO: The Energy for Every Challenge

    T=PCO The Energy for Every Challenge

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