Tohoku Electric Power Incorporated : Financial Results for the First Quarter of Fiscal Year ending March 31, 2023 (FY2022) and Financial Forecasts for FY2022

TOHOKU ELECTRIC POWER CO., INC.

July 29, 2022

Financial Results for the First Quarter of Fiscal Year ending March 31, 2023 (FY2022) and

Financial Forecasts for FY2022

Tohoku Electric Power CO., Inc. released its financial results for the first quarter of FY2022 (April 1, 2022 through June 30, 2022) and Financial Forecasts for FY2022 today.

【Consolidated Financial Results】

Even with an increase in heating demand due to colder temperatures in early spring, total electricity sales volume decreased to 18.4 TWh, a year-on-year decrease of 0.9% because of decrease in retail electricity sales volume owing to intensifying competition and decease in volume of wholesale electricity sales outside our franchise area caused by suspension of thermal plant operations.

Consolidated operating revenue increased to ¥558.2 billion, a year on year increase of ¥157.6 billion or 39.4%, mainly due to increase in fuel cost adjustment charge.

Consolidated ordinary loss was ¥28.6 billion, a year-on-year decrease of ¥47.1 billion due to an increase in electricity procurement costs resulting from rising fuel prices and JEPX prices.

Net loss attributable to owners of the parent was ¥31.2 billion, a year-on-year decrease of ¥41.0 billion.

Consolidate cash income* for this period was ¥67.6 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 the first quarter of 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 and JEPX

Financial and Dividend Forecasts 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 and JEPX

Summary of Financial Results

2

 Operating revenue

¥558.2 billion (a year on year increase of ¥157.6 billion)

• Operating revenue increased mainly due to an increase in fuel cost adjustment charges resulting from rise in fuel prices.

 Ordinary income/loss

- ¥28.6 billion (a year on year decrease of ¥47.1 billion)

• Ordinary income/loss decreased mainly due to an increase in electricity procurement costs resulting from rising fuel prices and JEPX prices.

 Net Income Attributable to	- ¥31.2 billion (a year on year decrease of ¥41.0 billion)
Owners of Parent
【Summary of Consolidated Financial Statements】

(billions of yen)

	FY2021/1Q			FY2022/1Q			Change			Change
	(A)			(B)			(B) - (A)			(B) / (A)
Operating Revenue	400.5			558.2			157.6			139.4	%
Ordinary Income*1	18.5			(28.6)			(47.1)			-
[	32.5	]	[	17.3	]	[	(15.1)	]	[	53.4	%]
Net Income Attributable to	9.8			(31.2)			(41.0)			-	%
Owners of Parent
Consolidated Cash Income*2	82.5			67.6			(14.9)			81.9	%

*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	3
from the Corresponding Period Last Year
Decrease of -47.1 Billion Yen (18.5 → -28.6)

• Increase in fuel cost adjustment charge 8.1

(billions of yen)

21.1

• Increase in fuel cost adjustment charges 72.5

• Impact of the earthquake off the coast of Fukushima Prefecture -6.3

18.5

	Increase in	Increase in
Increase in	revenue from	costs of
wholesale	electricity
revenue from	electricity sales	procurement
retail electricity
sales

-144.2

76.5

• Increase in fuel cost -72.9
• Increase in power purchased from JEPX -71.3

• Impact of the earthquake off the coast of Fukushima Prefecture -24.7

Effect of changing factors related to electricity supply-demand-46.6

• Time lag between fuel cost and fuel cost adjustment charges -32.0

• Rise in JEPX prices -27.0
• Exceeding the upper limit of the fuel cost adjustment system -0.1 etc

Others-28.6

-0.5

FY2021/1Q

Ordinary income excluding time lag between fuel cost and fuel cost adjustment charges 32.5

Impact excluding Time lag between fuel cost and fuel cost adjustment

charges︓decrease of about 15.1 billion yen

FY2022/1Q

Ordinary income excluding time lag between fuel cost and fuel cost adjustment charges 17.3

Electricity Sales and Major Factors	4
 Retail electricity sales		15.4 TWh (a year on year decrease 0.04 TWh)
			Retail electricity sales volume decreased due to the impact of intensifing competition.
 Wholesale electricity sales		3.0 TWh (a year on year decrease 0.1 TWh)
			Wholesale electricity sales volume decreased due to a decease in volume of wholesale
			electricity sales outside our franchise area caused by suspension of thermal plant
			operations.
											(GWh)
Electricity Sales*1		FY2021/1Q		FY2022/1Q		Change	Change
			(A)		(B)		(B) - (A)	(B) / (A)
Lighting (Residential)			4,598		4,542		(56)		98.8 %
Power			10,824		10,838		14		100.1 %
Retail Electricity Sales*2			15,422		15,380		(42)		99.7 %
Wholesale Electricity Sales*3			3,153		3,038		(115)		96.3 %
Total of Electricity Sales			18,576		18,418		(158)		99.1 %
*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.
					FY2021/1Q		FY2022/1Q		Change
						(A)			(B)		(B) - (A)
Crude Oil CIF Price ($/bbl.)				66.9		110.8		43.9
Exchange Rate (¥/$)				110		130		20
Hydro Power Flow Rate (%)				92.8		108.9		16.1
Nuclear Power Utilization Rate (%)			-		-		-