Tohoku Electric Power : Financial Results for the First Quarter of Fiscal 2015

TOHOKU ELECTRIC POWER CO., INC.

July 30, 2015

Tohoku Electric Power Co., Inc. (hereinafter, Tohoku EPCO), today submitted a summary of its financial statements for the first quarter (from April 1, 2015 to June 30, 2015) to the Tokyo Stock Exchange.

【Consolidated Financial Results】

In terms of revenue, an increase in grant under Act on Purchase of Renewable Energy Sourced Electricity based on "Feed-In-Tariff scheme for renewable energy" and a growth in sales of subsidiary's construction work increased consolidated operating revenue to ¥509.8 billion (a year-on-year increase of ¥11.1 billion, or a 2.2 % increase) and ordinary revenue to ¥512.0 billion (a year-on-year increase of ¥11.2 billion, or a 2.2 % increase), despite a decrease in electric power sold and other factors lowered the electricity sales.

As for expenses, even with an increase in maintenance expenses which are necessary to maintain a stable power supply, a significant drop in fuel costs due to a fall in fuel prices and our thorough streamlining efforts decreased consolidated ordinary expenses to ¥440.8 billion (a year-on-year decrease of ¥3.1 billion , or a 0.7 % decrease).

Consequently, consolidated ordinary income was ¥71.2 billion, an increase of ¥14.3 billion (or a

25.3 % increase) year-on-year.

Profit attributable to owners of parent was ¥48.5 billion, an increase of ¥10.8 billion (or a 28.6 %

increase) year-on-year.

【Electricity Sales】

While there was continuous post-quake reconstruction, a decrease in heating demand due to a warm spring as well as our customers' power saving efforts lowered the electricity sales to 17.6TWh, a

2.3 % decrease year-on-year.

【Financial Forecast for FY2015】

Consolidated operating revenue forecast remains unchanged from the estimate on April 30, 2015. Consolidated income estimates have yet to be determined at this time, because it is difficult to

reasonably assess the expenses due to uncertainty over its supply capacity. When reasonable assessment can be made, estimates will be promptly disclosed.

【Dividend】

Tohoku EPCO has not yet determined a forecast for interim dividend and year-end dividend for fiscal

2015, because it is difficult to reasonably assess its financial forecast.

Tohoku Electric Power Co., Inc.

Summary of Quarterly Financial Statements (Unaudited)

(April 1, 2015 - June 30, 2015)

July 30, 2015

Information below is an English translation of the "Unaudited Quarterly Financial Release" for three months ended June 30, 2015, which has been filed with the Tokyo Stock Exchange, Inc. for public inspection.

Tohoku Electric Power Co., Inc. (Code : 9506)

1-7-1 Honcho, Aoba-ku, Sendai, Miyagi, Japan (URL : http://www.tohoku-epco.co.jp)Representative : Hiroya Harada, President

Tel : +81-22-225-2111

(Note) All monetary values are rounded down to the nearest units as indicated in each table.

1. Business Results for Consolidated First Quarter Period in FY2015 (Three months ended June 30, 2015)

(1) Progresses of Financial Results

Operating revenue Operating income Ordinary income Profit attributable

to owners of parent

Millions of yen % Millions of yen % Millions of yen % Millions of yen %

3 months ended Jun. 30, 2015 509,8372.278,37618.271,230

25.3 48,518 28.6

3 months ended Jun. 30, 2014 498,64915.366,288-56,834-

37,713 779.6

Basic earnings per share

Diluted earnings per share

Yen Yen

3 months ended Jun. 30, 2015 97.2697.10

3 months ended Jun. 30, 2014 75.6275.51

(Note) Percentage figures represent changes as compared to the same period of the previous year.

(2) Changes in Financial Positions

Total assets Net assets Equity-to-asset ratio

Millions of yen Millions of yen %

Jun. 30, 2015 4,052,522 695,481 15.9

Mar. 31, 2015 4,131,217 651,216 14.6

2. Dividends

Cash dividends per share

1Q 2Q 3Q Year-end Annual total

(Note) Dividend forecasts for the year ending March 31, 2016 have yet to be determined at this time.

3. Business Results Forecast for Consolidated FY2015 (Year ending March 31, 2016)

Operating revenue Operating income Ordinary income Profit attributable

to owners of parent

Basic earnings per share

Millions of yen % Millions of yen % Millions of yen % Millions of yen %

Yen

FY2015 2,100,000 (3.8) - - - - - - -

(Note) Percentage figures represent changes as compared to the same period of the previous year.

Consolidated earnings estimates for the year ending March 31, 2016 have yet to be determined at this time, in view of the difficulty of rationally estimating the expenses since our supply capacity forecast remains unclear.

These estimates will be promptly disclosed as soon as we can reasonbly assess the estimates of income.

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(Reference) Business Results Forecast for Non-Consolidated FY2015 (Year ending March 31, 2016)

Operating revenue Operating income Ordinary income Net income Net income per share

Millions of yen % Millions of yen %

FY2015 1,900,000 (2.6) - -

Millions of yen % Millions of yen % Yen

- - - - -

(Note) Percentage figures represent changes as compared to the same period of the previous year.

Non-Consolidated earnings estimates for the year ending March 31, 2016 have yet to be determined at this time, in view of the difficulty of rationally estimating the expenses since our supply capacity forecast remains unclear.

These estimates will be promptly disclosed as soon as we can reasonbly assess the estimates of income.

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QUARTERLY CONSOLIDATED BALANCE SHEET (Unaudited)

First Quarter FY2015 (As of June 30, 2015) and FY2014 (As of March 31, 2015)

Assets(Millions of yen)

Item

June 30, 2015

March 31, 2015

Non-current assets (property, plant and equipment): 3,482,833 3,497,225

Electric utility plant and equipment: 2,425,773 2,451,990

Hydroelectric power production facilities 171,791 174,017

Thermal power production facilities 322,158 326,889

Nuclear power production facilities 261,969 270,149

Transmission facilities 649,383 648,714

Transformation facilities 239,674 247,394

Distribution facilities 625,465 625,693

General facilities 95,336 97,847

Other electric utility plant and equipment 59,993 61,283

Other non-current assets 210,196 212,402

Construction in progress 281,473 267,504

Construction and retirement in progress 281,473 267,504

Nuclear fuel: 140,833 139,336

Loaded nuclear fuel 34,729 34,729

Nuclear fuel in processing 106,103 104,607

Investments and other assets: 424,556 425,991

Long-term investments 103,171 97,496

Reserve fund for reprocessing of irradiated nuclear fuel 74,902 77,802

Net defined benefit asset 7,353 6,344

Deferred tax assets 135,531 140,794

Other 104,197 104,154

Allowance for doubtful accounts (599) (601)

Current assets: 569,689 633,991

Cash and deposits 124,983 115,170

Notes and accounts receivable - trade 181,803 193,817

Inventories 76,194 76,732

Deferred tax assets 55,565 64,547

Other 131,720 184,402

Allowance for doubtful accounts (577) (678)

Total 4,052,522 4,131,217

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Liabilities and net assets (Millionsofyen)

Item

June 30, 2015

March 31, 2015

Non-current liabilities: 2,576,983 2,611,028

Current liabilities: 780,057 868,971

Current portion of non-current liabilities 312,214 336,175

Short-term loans payable 34,670 35,370

Notes and accounts payable - trade 126,261 149,435

Accrued taxes 27,075 47,099

Reserve for restoration costs of natural disaster 1,520 1,764

Other 278,315 299,127

Total liabilities 3,357,041 3,480,000

Shareholders' equity: 617,752 574,235

Subscription rights to shares 809 809

Non-controlling interests 49,293 48,606

Total net assets 695,481 651,216

Total 4,052,522 4,131,217

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QUARTERLY CONSOLIDATED STATEMENT OF INCOME (Unaudited)

First Quarter FY2015 (Three months ended June 30, 2015) and First Quarter FY2014 (Three months ended June 30, 2014)

Item

(Millions of yen) Three months ended June 30,

2015 2014

Operating revenue: 509,837 498,649

Electric utility operating revenue 455,385 452,812

Other business operating revenue 54,451 45,837

Operating expenses: 431,461 432,361

Electric utility operating expenses 381,063 388,020

Other business operating expenses 50,398 44,341

Operating income 78,376 66,288

Non-operating income: 2,200 2,166

Dividend income 354 486

Interest income 492 518

Share of profit of entities accounted for using equity method 93 - Other 1,259 1,161

Non-operating expenses 9,346 11,619

Interest expenses 7,986 10,162

Other 1,359 1,456

Total ordinary revenue 512,038 500,816

Total ordinary expenses 440,807 443,981

Ordinary income

71,230 56,834

Provision or reversal of reserve for fluctuation in water levels: - 484

Provision of reserve for fluctuation in water levels - 484

Income before income taxes 71,230 56,350

Income taxes - current 7,145 3,724

Income taxes - deferred 14,374 14,703

Total income taxes 21,519 18,428

Profit 49,711 37,922

Profit attributable to non-controlling interests 1,192 209

Profit attributable to owners of parent 48,518 37,713

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QUARTERLY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Unaudited)

First Quarter FY2015 (Three months ended June 30, 2015) and First Quarter FY2014 (Three months ended June 30, 2014)

Item

(Millions of yen) Three months ended June 30,

2015 2014

Profit 49,711 37,922

Other comprehensive income:

Valuation difference on available-for-sale securities 2,664 1,242

Deferred gains or losses on hedges 77 (566) Foreign currency translation adjustment 322 (120) Remeasurements of defined benefit plans, net of tax (2,930) (1,702) Share of other comprehensive income of entities accounted for using equity method 2 0

Total other comprehensive income 137 (1,146) Comprehensive income 49,848 36,775

Comprehensive income attributable to:

Comprehensive income attributable to owners of parent 48,586 36,496

Comprehensive income attributable to non-controlling interests 1,262 279

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(Note)

This report solely constitutes reference material for the purpose of providing the readers with relevant information to evaluate our company.

The information contains forward-looking statements based on assumptions and projections about the future with regard to our company. As such, the readers are kindly asked to refrain from making judgment by depending solely on this information.

The forward-looking statements inherently involve a degree of risks and uncertainties. Consequently, these risks and uncertainties could cause the actual results and performance to differ from the assumed or projected status of the company.

Tohoku Electric Power Co., Inc. hereby disclaim any responsibility or liability in relation to consequences resulting from decisions made by investors.

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