TOHOKU ELECTRIC POWER CO., INC.

April 28, 2023

Financial Results for the Fiscal Year ended March 31, 2023 (FY2022) and Financial Forecasts for

the Fiscal Year ending March 31, 2024 (FY2023)

Tohoku Electric Power CO., Inc. released its financial results for FY2022 (April 1, 2022 through March 31, 2023) and Financial Forecasts for FY2023 today.

【Consolidated Financial Results】

Total electricity sales volume decreased to 81.8 TWh, a year-on-year decrease of 2.7% because of a decrease in retail electricity sales volume due to the spread of energy-saving initiatives and the higher temperatures in winter compared to the previous year, in addition to a decrease in volume of wholesale electricity sales.

Consolidated operating revenue increased to ¥3,007.2 billion, a year on year increase of ¥902.7 billion or 42.9%, mainly due to an increase in fuel cost adjustment charge.

Consolidated ordinary loss was ¥199.2 billion, a year-on-year decrease of ¥150.0 billion due to a significant increase in electricity procurement costs resulting from soaring fuel prices, weakening yen and rising JEPX prices.

Net loss attributable to owners of the parent was ¥127.5 billion, a year-on-year decrease of ¥19.1 billion.

We posted operating/ordinary/net loss for two consecutive years, especially in terms of operating/ordinary loss, which were the largest ever.

Furthermore, in order to maintain stable electricity supply under these severe business conditions, interest-bearing Liabilities at the end of FY2022 increased by ¥615.3 billion from the end of FY2021 to ¥3,375.6 billion, which was the largest ever.

As a result, consolidated equity-ratio of the end of FY2022 fell by 4.3% to 10.5%, which was the lowest level since the introduction of the consolidated accounting.

Consolidated cash income* for this period was ¥136.6 billion.

*We set consolidated cash income as a financial target in the Tohoku Electric Power Group's medium- to long- term vision "Working alongside next". (Target for 320 billion yen in FY 2024)

Consolidated cash income = Operating income + Depreciation + Amortization of nuclear fuel + Share of profit of entities accounted for using equity method (Operating income doesn't include time lag between fuel cost and fuel cost adjustment charges.)

1

Key points of financial results and forecasts

Financial Results for FY2022

  • Operating revenue : mainly due to increase in fuel cost adjustment charge
  • Ordinary loss : mainly due to an increase in electricity procurement costs resulting from rising fuel prices, weakening yen and soaring JEPX prices

Financial and Dividend Forecasts for FY2023

Summary of Financial Results

2

Operating revenue

¥3,007.2 billion

(a year on year increase of ¥902.7 billion)

• Operating revenue increased mainly due to an increase in fuel cost adjustment charges resulting

from rise in fuel prices.

Ordinary income

-¥199.2 billion

(a year on year decrease of ¥150.0 billion)

• Ordinary income decreased mainly due to an increase in electricity procurement costs resulting

from rising fuel prices, weakening yen and soaring JEPX prices.

Net Income Attributable

-¥127.5 billion

(a year on year decrease of ¥19.1 billion)

to Owners of Parent

【Summary of Consolidated Financial Statements】

(billions of yen)

FY2021

FY2022

Change

Change

(A)

(B)

(B) - (A)

(B) / (A)

Operating Revenue

2,104.4

3,007.2

902.7

142.9

%

Ordinary Income*1

(49.2)

(199.2)

(150.0)

-

56.7

]

[

(76.2)

]

[

(133.0)

]

[

-

]

[

Net Income Attributable to

(108.3)

(127.5)

(19.1)

-

Owners of Parent

Consolidated Cash Income*2

257.3

136.6

(120.6)

53.1

%

*1 Lower figures exclude time lag between fuel cost and fuel cost adjustment charges.

*2 Consolidate Cash Income = Operating income + Depreciation + Amortization of nuclear fuel + Share of profit of entities accounted for using equity method (Operating income doesn't include time lag between fuel cost and fuel cost adjustment charges.)

Changing Factors in Consolidated Ordinary Income

from the Corresponding Period Last Year

Decrease of -150.0 Billion Yen (-49.2 → -199.2)

3

(billions of yen)

• Increase in fuel cost

adjustment charge 39.7

133.4

Increase in

Increase in

revenue from

costs of

• Increase in fuel cost -495.3

wholesale

electricity

• Increase in fuel cost

Increase in

• Increase in power purchased

electricity sales

procurement

adjustment charges 404.7

revenue from

from JEPX etc -195.1

retail electricity

Impact of time lag between

sales

Impact of time lag between

fuel cost and fuel cost

-690.4

fuel cost and fuel cost

adjustment charges -106.0

468.2

adjustment charges -123.0

Impact of the earthquake off

Impact of the earthquake off

the coast of Fukushima

the coast of Fukushima

Prefecture (Feb.2021 and

Prefecture (Mar. 2022) -55.4

Mar.2022) -21.5

-49.2

• Power network

Effect of changing factors

business -29.5 etc

-199.2

related to electricity supply-

Others

demand -88.8

Initiative for improving

-61.2

• Time lag between fuel cost and fuel cost

profitability

adjustment charges

-17.0

Approx. 50.0

• Rise in JEPX prices

-85.0

• Exceeding the upper limit of the fuel cost

Supply-demand

adjustment system

-72.1

optimization,

FY2021

• Review of electricity rate for deregulated

diversification of fuel

FY2022

customers 50.0 etc

procurement etc

Ordinary income excluding

Ordinary income excluding

Impact excluding Time lag between fuel cost and fuel cost

time lag between fuel cost

time lag between fuel cost

and fuel cost adjustment

adjustment charges：decrease of about 133.0 billion yen

and fuel cost adjustment

charges 56.7

charges -76.2

Electricity Sales, Major Factors

4

Retail electricity sales

65.9 TWh (a year on year decrease 1.4 TWh)

Retail electricity sales volume decreased due to spreading of power saving initiatives

and a decrease in heating demand in winter.

Wholesale electricity sales 15.9 TWh (a year on year decrease 0.8 TWh)

Wholesale electricity sales volume decreased mainly due to a decease in volume of

wholesale electricity sales outside our franchise area.

(GWh)

Electricity Sales*1

FY2021

FY2022

Change

Change

(A)

(B)

(B) - (A)

(B) / (A)

Lighting (Residential)

20,990

19,959

(1,031)

95.1

%

46,356

(374)

%

Power

45,982

99.2

Retail Electricity Sales*2

67,346

65,940

(1,406

)

97.9

%

Wholesale Electricity Sales*3

16,718

15,885

(833)

95.0

%

Total of Electricity Sales

84,064

81,825

(2,239

)

97.3

%

*1 Individual figures of Tohoku Electric Power Co., Inc., excluding network business. *2 Retail Electricity Sales includes electric power for business use.

*3 Wholesale Electricity Sales includes the volume of specified power interchange.

Major Factors

FY2021

FY2022

Change

(A)

(B)

(B) - (A)

Crude Oil CIF Price ($/bbl.)

77.2

102.7

25.5

Exchange Rate (¥/$)

112

136

24

Hydro Power Flow Rate (%)

96.2

97.0

0.8

Nuclear Power Utilization Rate (%)

-

-

-

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Disclaimer

Tohoku Electric Power Co. Inc. published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 07:06:13 UTC.