Tokyo Electric Power Company Holdings, Incorporated · TSE:9501

Tokyo Electric Power — Q1 FY2018 Earnings Presentation

43 slides from Tokyo Electric Power's earnings presentation, Jul 30, 2018

1. Slide 1: FY2018 1st Quarter Financial Results

   FY2018 1st Quarter Financial Results (April 1 – June 30, 2018) 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 FY2018 1st Quarter Financial Results

   Overview of FY2018 1st Quarter Financial Results (Released on July 30, 2018) ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

4. Slide 4: Key Points of FY2018 1st Quarter Financial Results

   Key Points of FY2018 1st Quarter Financial Results 1 < FY2018 1st Quarter Financial Results >  Although electricity sales volume from TEPCO group companies decreased, operating revenue and ordinary income increased due to an increase in transmission revenue from non-TEPCO group companies and contin

5. Slide 5: 1. Consolidated Financial Results

   1. Consolidated Financial Results 2 (Unit: Billion kWh) FY2018 FY2017 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Electricity Sales Volume 52.6 55.5 -2.9 94.8 (Unit: Billion kWh) FY2018 FY2017 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (% ) Operating Revenue 1,354.0 1,313.3 40.6 1

6. Slide 6: 2. Key Points of Each Company

   2. Key Points of Each Company 3 < TEPCO Holdings >  Ordinary income increased due to an increase in dividend income and other areas. < TEPCO Fuel & Power >  Ordinary income increased due to a decrease in fixed costs from cost reduction efforts, increase in profit from subsidiaries, and other effor

7. Slide 7: 3. Overview of Each Company

   3. Overview of Each Company 4 (Unit: Billion kWh, yen/dollar) FY2018 FY2017 Comparison Apr-Jun Apr-Jun A r e a D e m a n d 61.8 63.1 - 1.2 Foreign Exchange Rate (TTM) 109.1 111.1 - 2.0 (Unit: Billion Yen) FY2018 FY2017 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Operating Revenue 1,354.0

8. Slide 8: 4. Consolidated Extraordinary Income/Loss

   4. Consolidated Extraordinary Income/ Loss 5 (Unit: Billion Yen) FY2018 FY2017 Comparison Apr-Jun Apr-Jun Extraordinary Income/ Loss -46.6 92.5 -139.2 Extraordinary Income － 128.6 -128.6 Grants-in-aid from NDF* － 128.6 -128.6 Extraordinary Loss 46.6 36.0 10.6 Expenses for Nuclear Damage Compensation

9. Slide 9: 5. Consolidated Financial Position

   5. Consolidated Financial Position 6 Total assets decreased 381.8 billion yen primarily due to decreases in cash and deposits. Total liabilities increased 388.2 billion yen primarily due to decreases in the amount of interest-bearing debt. Equity ratio improved by 0.7 points. Balance Sheets as of

10. Slide 10: 6. FY2018 Full-Year Financial Forecasts

    6. FY2018 Full-Year Financial Forecasts 7 (Unit: Billion Yen) FY2018 Projections FY2018 Projections (released on Jul. 30, (released on Apr. 26, FY2017 Results 2018) 2018) Operating Revenue 6,099 6,099 5,850.9 Ordinary Income/ Loss 285 285 254.8 Extraordinary Income/ Loss － － 73.8 Net Income attribut

11. Slide 11: Reference: Key Factors Affecting Performance (Results)

    <Reference> Key Factors Affecting Performance（Results） 8 Area Demand (Unit: Billion kWh) FY2018 FY2017 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Area Demand 61.8 63.1 -1.2 98.0 Foreign Exchange Rate / CIF FY2018 FY2017 (A)-(B) Apr-Jun (A) Apr-Jun (B) Foreign Exchange Rate (Interbank, ye

12. Slide 12: Reference: Key Factors Affecting Performance (Financial Forecasts)

    <Reference> Key Factors Affecting Performance (Financial Forecasts) 9 Key Factors Affecting Performance FY2018 Projections FY2018 Projections (released on Jul. 30, 2018) (released on Apr. 26, 2018) Electricity Sales Volume (Billion kWh) 232.4 233.4 Crude Oil Prices (All Japan CIF; dollars per barrel

13. Slide 13: Reference: Consolidated Ordinary Income/Loss - Year on Year Comparison of Each Company

    <Reference> Consolidated Ordinary Income/ Loss 10 - Year on Year Comparison of Each Company Ordinary Revenue (Unit: Billion Yen) HD FP PG EP Adj. Increase 40.6 + 8.0 - 3.7 + 12.0 FY2017 - 7.9 + 32.2 FY2018 Apr-Jun Apr-Jun 1,313.3 1,354.0 Ordinary Income / Loss (Unit: Billion Yen) HD FP PG EP Adj. +

14. Slide 14: Reference: Consolidated Ordinary Revenue

    <Reference> Consolidated Ordinary Revenue 11 (Unit: Billion Yen) FY2018 FY2017 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) (Operating Revenue) 1,354.0 1,313.3 40.6 103.1 Electricity Sales Revenue 1,040.3 1,055.4 -15.1 98.6 Power Sold to Other Utilities and 64.4 47.9 16.4 134.3 Suppliers O

15. Slide 15: Reference: Consolidated Ordinary Expenses

    <Reference> Consolidated Ordinary Expenses 12 (Unit: Billion Yen) FY2018 FY2017 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Personnel Expenses 79.3 85.4 -6.1 92.8 Fuel Expenses 302.5 277.0 25.5 109.2 Maintenance Expenses 55.4 65.4 -9.9 84.8 Depreciation 130.7 135.5 -4.7 96.5 Power Purchas

16. Slide 16: Reference: Consolidated Ordinary Income/Loss - Year on Year Comparison

    <Reference> Consolidated Ordinary Income/ Loss –Year on Year Comparison 13 Ordinary Income / Loss (Unit: Billion Yen) Factors related to Power Supply and Demand Others (including renewable energy) + 54.3 - 42.6 + 2.0 yen/$ Increase Foreign in Profits exchange rate + 6.0 CIF 11.7 billion yen Fuel cos

17. Slide 17: Supplemental Material

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

18. Slide 18: Table of Contents

    Table of Contents Financial Results Detailed Information The Current Status of Fukushima Daiichi NPS and Future Initiatives Consolidated Statements of Income 14 Current Situation and Status of Units 1 through 4 22 Consolidated Balance Sheets 15 Key Points from the 4th Revision of the Mid-and-Long-Te

19. Slide 19: FY2018 1st Quarter Financial Results Detailed Information

    FY2018 1st Quarter Financial Results Detailed Information ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

20. Slide 20: Consolidated Statements of Income

    14 Consolidated Statements of Income (Unit: Billion Yen) FY2018 FY2017 Comparison Apr-Jun (A) Apr-Jun (B) (A)-(B) (A)/(B) (%) Operating Revenue 1,354.0 1,313.3 40.6 103.1 Operating Expenses 1,285.1 1,245.7 39.4 103.2 Operating Income / Loss 68.8 67.6 1.2 101.9 Non-operating Revenue 18.4 12.5 5.9 147

21. Slide 21: Consolidated Balance Sheets

    Consolidated Balance Sheets 15 (Unit: Billion Yen) <Interest-bearing debt outstanding> (Unit: Billion Yen) Jun. 30 Mar. 31 Comparison Jun. 30 Mar. 31 (A)-(B) 2018 (A) 2018 (B) (A)-(B) (A)/(B) (%) 2018 (A) 2018 (B) Bonds 2,069.1 2,230.8 -161.7 Total Assets 12,210.0 12,591.8 -381.8 97.0 Long-term Debt

22. Slide 22: Financial Impact of the Great East Japan Earthquake

    Financial Impact of the Great East Japan Earthquake 16 (Unit: Billion Yen) FY2018 Cumulative Item FY2010 to FY2017 Apr-Jun Amount ◇Grants–in-aid from Nuclear Damage Compensation and Decommissioning Facilitation Corporation ○Grants-in-aid based on Nuclear Damage Compensation and Decommissioning * * F

23. Slide 23: Key Factors Affecting Performance and Financial Impact

    Key Factors Affecting Performance and Financial Impact 17 Key Factors Affecting Performance Financial Impact (Sensitivity) （Unit: Billion Yen） FY2018 【Reference】 FY2018 【Reference】 Apr-Jun Full-year Projections FY2017 Actual Performance Full-year Projections FY2017 Full-year Results Actual Performan

24. Slide 24: Seasonal Breakdown of Electricity Sales Volume and Total Power Generated

    Seasonal Breakdown of Electricity Sales Volume and Total Power Generated 18 Electricity Sales Volume Total Power Generated ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

25. Slide 25: Fuel Consumption Data

    Fuel Consumption Data 19 Fuel Consumption 【Reference】 FY2015 FY2016 FY2017 FY2018 FY2017 Actual Actual Actual Apr-Jun Apr-Jun LNG(million t) 21.55 21.06 20.80 4.53 4.20 Oil (million kｌ) 2.48 2.05 0.91 0.05 0.13 Coal (million t) 8.34 8.14 8.31 2.18 2.14 Note: The oil data is total of crude oil and he

26. Slide 26: Feed-in Tariff Scheme for Renewable Energy (Purchase Cost Collection Flow)

    Feed-in Tariff Scheme for Renewable Energy (Purchase Cost Collection Flow) 20 （FY2018 Apr.- Jun. ) Avoidable Cost 42.4 billion yen * Renewable Subsidy Purchase Cost Energy 114.8 billion yen 157.2 billion yen Generators Cost Bearing Adjustment (Recorded as (Recorded as Power Organization Other Revenu

27. Slide 27: Schedules for Public Bond Redemption

    Schedules for Public Bond Redemption 21 (Billion Yen) Amount at Maturity (As of Jun. 30, 2018) TEPCO Public Bond TEPCO Power Grid Public Bond (FY) Note: The amount redeemed for Apr.- Jun. of FY2018 totaled 207.3 billion yen. ©Tokyo Electric Power Company Holdings, Inc. All Rights Reserved.

28. Slide 28: 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.

29. Slide 29: Current Situation and Status of Units 1 through 4

    Current Situation and Status of Units 1 through 4 22 - 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

30. Slide 30: Key Points from the 4th Revision of the Mid-and-Long-Term Roadmap

    Key Points from the 4th Revision of the Mid-and-Long-Term Roadmap (Sep. 2017) 23 ●The revised version of the Mid-and-Long-Term Roadmap is available here (TEPCO website). 1. Basic Approach toward Revision (1) Maintain approach that prioritizes safety and emphasizes risk reduction (2) Optimize overall

31. Slide 31: Revised Mid-and-Long-Term Roadmap Milestones

    Revised Mid-and-Long-Term Roadmap Milestones 24 Maintain Overall Framework of Decommissioning Schedule Nov. 2013 Dec. 2011 (Fuel removal initiated at Unit 4) Dec. 2021 30 to 40 years later Stabilization initiatives Phase 1 Phase 2 Phase 3 Cold shutdown achieved Period until start of spent Period unt

32. Slide 32: Contaminated Water Management

    Contaminated Water Management 25 − 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. <Main countermeasures> < Major Progress> Please visit our

33. Slide 33: 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.

34. Slide 34: Main Measures to Secure Safety - 1 [Outline]

    Main Measures to Secure Safety – 1 [Outline] 26  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

35. Slide 35: Main Measures to Secure Safety - 2 [Implementation Status]

    Main Measures to Secure Safety - 2 [Implementation Status] 27 As of July 11, 2018 Item Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Ⅰ. Installation of flooding embankment [banks] Completed *2 Completed Ⅱ. Countermeasures against inundation into buildings (1) Installation of tide embankments (flo

36. Slide 36: Compliance Review under the New Regulatory Requirements

    Compliance Review under the New Regulatory Requirements 28 Latest Review Status ・On September 27, 2013, the applications for permission changes in reactor installation were presented to receive the regulatory standard compliance examination for Units 6 and 7. ・After the application for permission ch

37. Slide 37: Key License/Permit Steps in Enforcement of New Regulatory Requirements

    29 Pre-use inspection(※2) Successful passage of pre-use inspection TEPCO Application for pre-use inspection Key License/Permit Steps in Enforcement of New Regulatory Requirements Construction plan & safety regulations(※1) Construction plan authorization Safety regulation revision authorization NRA ※

38. Slide 38: Other Initiatives

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

39. Slide 39: Implementation of the Streamlining Policy

    Implementation of the Streamlining Policy 30 <Cost reduction> − In addition to the cost reductions that has been made under the New Comprehensive Special Business Plan (TEPCO *1 : 4.8 trillion yen/10 years), TEPCO has been executing, under the Revised New Comprehensive Special Business Plan, unprece

40. Slide 40: Efforts towards Nuclear Reform - 1

    Efforts towards Nuclear Reform - 1 31 - 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

41. Slide 41: Efforts towards Nuclear Reform - 2

    Efforts towards Nuclear Reform – 2 32 - 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

42. Slide 42: Main Efforts to Increase Corporate Value - 1

    Main Efforts to Increase Corporate Value -1 33 <TEPCO Holdings> May 17, 2018: Started joint research with Pocket Queries, Inc. on the use of Mixed Reality to assist and advance frontline work operations at nuclear power stations and plants June 6, 2018: Started working with NEC Corporation, Global E

43. Slide 43: Main Efforts to Increase Corporate Value - 2

    Main Efforts to Increase Corporate Value -2 34 <TEPCO Power Grid> June 15, 2018:Signed a partnership agreement with the National Cheng Kung University to conduct concept study and empirical project for developing a Smart Community, planned by the Taiwanese government in Shalun, Tainan City June 28,

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