Tohoku Electric Power : Financial Results for the Third Quarter of Fiscal 2014 and Financial Forecast for Fiscal 2014

TOHOKU ELECTRIC POWER CO., INC.

January 29, 2015

Tohoku Electric Power Co., Inc. (the "Company") today submitted a summary of its financial statements for the third quarter (from April 1, 2014 to December 31, 2014) on the Tokyo Stock Exchange.

【Consolidated financial results】

Despite a decrease in electricity sales, revenue from electricity sales increased due to the effect of rate revision and fuel cost adjustment charges. As a result, operating revenues were ¥1,564.3 billion (a year-on-year increase of ¥138.5 billion, or a 9.7 % increase), and ordinary revenues were ¥1,569.5 billion (a year-on-year increase of ¥136.5 billion, or a 9.5 % increase).

With respect to expenses, even though decreases in depreciation and personnel expenses together with our thorough streamlining of operations, ordinary expenses were ¥1,473.6 billion (a year-on-year increase of ¥50.1 billion, or a 3.5% increase) due to increases of fuel costs by the weak yen and maintenance expenses necessary for the stable power supply.

As a result, ordinary income was ¥95.9 billion (a year-on-year increase of ¥86.4 billion).

Since the Company booked an extraordinary gain of ¥14.2 billion in accordance with the revision of retirement benefit plan, net income was ¥70.7 billion, a year-on-year increase of ¥57.6 billion.

【Electric power sold by Tohoku EPCO】

While there were continuous post-quake reconstructions, our customers' power saving efforts and decrease in air conditioning demand due to a warm spring and a cool summer and other factors lowered our electricity sales to 54.8 TWh, a 0.7% decrease from the year-earlier levels.

【Financial forecast for fiscal 2014】

Concerning the financial forecast for FY2014, the Company revised the forecast of operating revenues and each incomes from the previous forecast disclosed on October 30, 2014, taking into consideration the recent outlook of supply and demand.

Operating revenues of consolidated earnings estimate are expected to be approximately ¥2,170.0 billion, a 0.5% decrease compared to the previous forecast because of a decrease in electricity sales and other factors.

Consolidated ordinary income is expected to be approximately ¥105.0 billion, a 19.3% increase compared to the previous forecast mainly because of a decrease in fuel costs due to a drop in crude oil CIF price.

Net income is expected to be approximately ¥78.0 billion, a 14.7% increase compared to the previous forecast.

Consolidated (Billions of yen)

Non-consolidated (Billions of yen)

【Dividend】

The Company's basic dividend policy is to distribute stable dividends determined by taking into full consideration our business performance of the relevant fiscal year and our medium to long-term financial prospects.

The Company has revised its financial forecast upward, primarily due to the upward revision of expected profit results compared to those of last year by thorough streamlining of operations. Comprehensively deliberating facts such as above mentioned basic dividend policy and the recovery of the Company's financial condition which was badly affected by the Great East Japan Earthquake and subsequent incidents, the Company has decided to pay a 10 yen year-end dividend per share for FY2014.

Additionally, please note that the year-end dividend will be officially determined and implemented, subject to the approval of the 91st General Shareholders' Meeting scheduled to be held in June 2015.

Tohoku Electric Power Co., Inc.

Summary of Quarterly Financial Statements (Unaudited)

(April 1, 2014 - December 31, 2014)

January 29, 2015

Information below is an English translation of the "Unaudited Quarterly Financial Release" for nine months ended December 31, 2014, 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 : Makoto Kaiwa, 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 Third Quarter Period in FY2014 (Nine months ended December 31, 2014)

(1) Progresses of Financial Results

Operating revenues Operating income Ordinary income Net income

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

9 months ended Dec. 31, 2014 1,564,3769.7131,843238.595,913

911.7 70,711 439.4

9 months ended Dec. 31, 2013 1,425,86311.938,945-9,480-

Net income per share Diluted net income per share

Yen Yen

9 months ended Dec. 31, 2014 141.76141.54

9 months ended Dec. 31, 2013 26.2926.25

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

13,108 -

(2) Changes in Financial Positions

Total assets Net assets Equity ratio to total assets

Millions of yen Millions of yen %

Dec. 31, 2014 4,173,526 627,727 14.0

Mar. 31, 2014 4,243,037 574,595 12.6

2. Dividends

Cash dividends per share

1Q 2Q 3Q Year-end Annual total

Yen Yen Yen Yen Yen

Year ended Mar. 31, 2014 -0.00-5.005.00

3. Business Results Forecast for Consolidated FY2014 (Year ending March 31, 2015)

Operating revenues Operating income Ordinary income Net income Net income per share

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

FY2014 2,170,000 6.4 153,000 78.6 105,000 168.8 78,000 127.4

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

156.36

1

(Reference) Business Results Forecast for Non-Consolidated FY2014 (Year ending March 31, 2015)

Operating revenues Operating income Ordinary income Net income Net income per share

Millions of yen % Millions of yen %

FY2014 1,960,000 6.9 125,000 48.7

Millions of yen % Millions of yen % Yen

80,000 106.9 65,000 80.4 130.30

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

2

CONSOLIDATED BALANCE SHEETS (Unaudited)

Third Quarter FY2014 (As of December 31, 2014) and FY2013 (As of March 31, 2014)

Assets(Millions of yen)

Item

December 31, 2014

March 31, 2014

Fixed assets (property, plant and equipment): 3,492,167 3,536,579

Electric utility fixed assets: 2,450,222 2,490,103

Hydro power plant 172,937 177,991

Thermal power plant 331,597 302,117

Nuclear power plant 271,427 291,103

Internal combustion power plant 47,572 71,048

Transmission plant 652,417 663,930

Transformation plant 237,061 241,109

Distribution plant 621,138 621,967

General plant 94,962 98,637

Other 21,107 22,197

Other fixed assets 209,605 212,886

Construction work in progress 237,622 223,394

Construction and retirement in progress 237,622 223,394

Nuclear fuel: 158,888 153,546

Loaded nuclear fuel 34,729 34,729

Nuclear fuel under processing 124,159 118,817

Investments in and advances to: 435,827 456,648

Long-term investments 96,614 96,447

Fund for reprocessing costs of irradiated nuclear fuel 78,647 85,132

Asset for retirement benefits 774 1,249

Deferred tax assets 156,969 170,504

Other 103,606 103,805

Allowance for doubtful accounts (785) (491)

Current assets: 681,359 706,458

Cash and deposits 112,109 147,052

Trade notes receivable and accounts receivable 199,913 186,930

Inventories 87,697 85,747

Deferred tax assets 65,617 68,613

Other 217,142 219,007

Allowance for doubtful accounts (1,120) (892)

Total assets 4,173,526 4,243,037

3

Liabilities and net assets (Millionsofyen)

Item

December 31, 2014

March 31, 2014

Fixed liabilities: 2,659,260 2,905,467

Current liabilities: 886,538 762,974

Current portion of long-term debt 368,999 245,231

Short-term borrowings 36,570 44,475

Trade notes and accounts payable 177,315 160,581

Accrued income taxes 35,808 29,512

Reserve for loss on disaster 1,450 2,462

Other 266,395 280,711

Total liabilities 3,545,799 3,668,441

Shareholders' equity: 568,460 518,262

Subscription rights to shares 809 670

Minority interests in consolidated subsidiaries 43,219 38,569

Total net assets 627,727 574,595

Total liabilities and net assets 4,173,526 4,243,037

4

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

Third Quarter FY2014 (Nine months ended December 31, 2014) and Third Quarter FY2013 (Nine months ended December 31, 2013)

Item

(Millions of yen) Nine months ended December 31,

2014 2013

Operating revenues: 1,564,376 1,425,863

Electric power 1,389,208 1,281,241

Other 175,167 144,621

Operating expenses: 1,432,532 1,386,918

Electric power 1,269,889 1,241,936

Other 162,643 144,981

Operating income 131,843 38,945

Other revenues: 5,167 7,144

Dividends income 855 828

Interest income 1,548 1,657

Gain from sales of fixed assets 101 153

Equity in earnings of affiliates - 1,821

Other 2,660 2,683

Other expenses: 41,096 36,608

Interest expense 36,269 32,464

Other 4,827 4,144

Total amount of revenues 1,569,543 1,433,007

Total amount of expenses 1,473,629 1,423,527

Ordinary gain

95,913 9,480

Extraordinary gain: 14,268 16,220

Gain on revision of retirement benefit plan 14,268 16,220

Income before income taxes and minority interests 110,182 25,701

Current income taxes 9,742 2,796

Deferred income taxes 26,234 11,197

Total amount of income taxes 35,977 13,993

Income before minority interests 74,205 11,707

Minority interests in income(loss) of consolidated subsidiaries 3,493 (1,401) Net income 70,711 13,108

5

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

Third Quarter FY2014 (Nine months ended December 31, 2014) and Third Quarter FY2013 (Nine months ended December 31, 2013)

Item

(Millions of yen) Nine months ended December 31,

2014 2013

Income before minority interests 74,205 11,707

Other comprehensive income:

Net unrealised holding gain on securities 3,567 1,553

Deferred gain (loss) on hedges (794) 949

Foreign currency translation adjustments 270 1,292

Retirement benefits liability adjustment (5,118) - Share of other comprehensive income of affiliates accounted for using

equity method (0) 1

Total other comprehensive income (2,074) 3,796

Comprehensive income 72,130 15,504

Total comprehensive income attributable to:

Shareholders 68,435 16,874

Minority interests 3,695 (1,370)

6

(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.

7

distributed by