東北電力（9506） – Summary of Financial Statements (Unaudited)

April 28, 2022Tohoku Electric Power Co., Inc.Summary of Financial Statements (Unaudited)(April 1, 2021 – March 31, 2022)Information below is an English translation of the “Unaudited Financial Release” for the year ended March 31, 2022,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 : https://www.tohoku-epco.co.jp)Representative : Kojiro Higuchi, PresidentTel : +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 FY2021 (Year ended March 31, 2022)(1) Progresses of Financial ResultsOperating revenueOperating incomeOrdinary incomeYear ended Mar. 31, 2022Year ended Mar. 31, 2021Millions of yen2,104,4482,286,803%(8.0)1.8Millions of yen(28,737)87,919%-(24.4)Millions of yen%(49,205)67,522-(32.5)(Note) Comprehensive income (FY2021: -101,751 million yen -%, FY2020: 59,284 million yen 16.4%)Percentage figures represent changes as compared to the same period of the previous year.Net income attributable toowners of parentMillions of yen%(108,362)29,380-(53.4)Net income per share(basic)Net income per share(diluted)Net income / EquityYear ended Mar. 31, 2022Year ended Mar. 31, 2021Yen(216.84)58.81Yen-55.88%(14.2)3.6(Reference)　Share of profit of entities accounted for using equity method (FY2021: -2,339 million yen, FY2020: -325 milion yen)(Note) Percentage figures represent changes as compared to the same period of the previous year.Ordinary income /Total assets%(1.1)1.5Operating income /Operating revenue%(1.4)3.8(2) Changes in Financial PositionsMar. 31, 2022Mar. 31, 2021Millions of yen4,725,6514,471,081Total assetsNet assetsNet assets per shareMillions of yen778,980901,534Equity-to-asset ratio%14.818.5Yen1,399.901,654.46(Reference) 　Shareholders’ Equity (March 31, 2022: 699,659 million yen, March 31, 2021: 826,466 million yen)(3) Situations of Cash FlowsYear ended Mar. 31, 2022Year ended Mar. 31, 20212. DividendsYear ended Mar. 31, 2021Year ended Mar. 31, 2022Year ending Mar. 31, 2023(forecast)Cash flows fromoperating activitiesMillions of yen97,188217,617Cash flows frominvesting activitiesMillions of yen(322,163)(254,961)Cash flows fromfinancing activitiesMillions of yenCash and cash equivalentsat end of the yearMillions of yen293,243(5,774)278,420209,593Cash dividends per share3QYenYear-endYen2QYenAnnual totalYenDividends paidfor the yearMillions of yenDividendspayout ratio%Dividends /Net assets%20.0020.00—-20.0015.00-40.0035.00-20,03417,5292.52.368.0–1QYen—(Note) The dividends for both interim and year-end FY2022 have yet to be determined at this time.13. Business Results Forecast for Consolidated FY2022 (Year ending March 31, 2023)Operating revenueOperating incomeOrdinary incomeNet income attributableto owners of parentNet income per share(basic)FY2022Millions of yen-%-Millions of yen-%-Millions of yen-%-Millions of yen-%-Yen-Financial forecasts for the year ending March 31, 2023 have yet to be determined at this time because it is difficult to make a reasonable estimate due tothe uncertainty of fuel price trends caused by the worsening situation in Ukraine and the need to closely scrutinize the timing of restoration of thermal power stations damaged by the earthquake off the coast of Fukushima Prefecture in 2022.These forecasts will be promptly disclosed as soon as certain conditions are met and we can reasonably assess the estimate, after a close examination of fuel price trends and the timing of restoration of thermal power stations.(Reference) 1.Consolidated Cash Income for FY2021 (year ended March 31, 2022)Year ended Mar. 31, 2022Consolidated Cash IncomeMillions of yen257,368(Note) We’ve set a target for consolidated cash income identified in the Tohoku Electric Power Group Medium-/Long-Term Vision “Working alongside next.” (In FY2024, more than 320 billion yen) 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.)2. Business Results for Non-consolidated FY2021 (Year ended March 31, 2022)(1) Progresses of Financial ResultsYear ended Mar. 31, 2022Year ended Mar. 31, 2021Operating revenueMillions of yen1,566,2031,734,962%(9.7)(14.6)Operating incomeMillions of yen(112,946)5,742%-(93.9)Ordinary incomeMillions of yen(86,871)4,607%-(94.1)Net incomeMillions of yen(111,883)(6,645)%–Net income per share(basic)Net income per share(diluted)Yen(223.88)(13.30)(Note) Percentage figures represent changes as compared to the same period of the previous year.Year ended Mar. 31, 2022Year ended Mar. 31, 2021Yen-(12.73)(2) Changes in Financial PositionsMar. 31, 2022Mar. 31, 2021Total assetsNet assetsEquity-to-asset ratioNet assets per shareMillions of yen3,928,9263,668,849Millions of yen531,883656,840%13.517.9Yen1,064.211,314.89(Reference) 　Shareholders’ Equity (March 31, 2022: 531,883 million yen, March 31, 2021: 656,840 million yen)* There is a difference between financial results in FY2020 and FY2021 due to the impact of time lag between fuel cost and fuel cost adjustment charges and the impact of the earthquake off the coast of Fukushima Prefecture in March 2022, in addition to an increase in income taxes-deferred due to a partial reversal of deferred tax assets, despite a decrease in depreciation due to a change in the depreciation method.2CONSOLIDATED BALANCE SHEETS (Unaudited) FY2021 (As of March 31, 2022) and FY2020 (As of March 31, 2021)Assets(Millions of yen)ItemMarch 31, 2022March 31, 2021Construction and retirement in progressSpecial account related to nuclear power decommissioningSpecial account related to reprocessing of spent nuclear fuelNon-current assets:Electric utility plant and equipment:Hydroelectric power production facilitiesThermal power production facilitiesNuclear power production facilitiesTransmission facilitiesTransformation facilitiesDistribution facilitiesGeneral facilitiesOther electric utility plant and equipmentOther non-current assetsConstruction in progress:Nuclear fuel:Loaded nuclear fuelNuclear fuel in processingInvestments and other assets:Long-term investmentsNet defined benefit assetDeferred tax assetsOtherAllowance for doubtful accountsCurrent assets:Cash and depositsNotes and accounts receivable – tradeInventoriesOtherAllowance for doubtful accounts3,809,1402,470,859179,080377,973230,008569,910253,411699,964128,16432,345224,290566,782513,30522,70030,776173,37130,591142,779373,836117,0356,597130,205121,837(1,840)916,510274,771231,96791,520319,169(918)3,731,3662,492,694177,880398,062247,275579,633251,793680,945129,92927,173223,546449,526399,39324,12426,009174,07130,591143,479391,526109,6996,191159,536116,389(290)739,715205,290270,26665,255199,679(777)Assets4,725,6514,471,0813Liabilities and net assets(Millions of yen)ItemMarch 31, 2022March 31, 2021Non-current liabilities:Bonds payableLong-term loans payableReserve for restoration costs of natural disasterNet defined benefit liabilityAsset retirement obligationsDeferred tax liabilities for land revaluationOtherCurrent liabilities:Current portion of non-current liabilitiesNotes and accounts payable – tradeAccrued taxesOther advancesReserve for restoration costs of natural disasterOtherReserves under special laws:Reserve for fluctuation in water levelsShareholders’ equity:Capital stockCapital surplusRetained earningsTreasury sharesAccumulated other comprehensive income:Valuation difference on available-for-sale securitiesDeferred losses on hedgesRevaluation reserve for landForeign currency translation adjustmentsRemeasurements of defined benefit plansNon-controlling interestsNet assets2,754,0091,180,0001,194,9407,498154,094173,8851,30942,2811,192,581282,522222,51317,652305,37921,458343,0557979690,102251,44122,290421,113(4,742)9,5561,6074,708(907)1,3412,80779,321778,9802,518,1241,025,0001,117,5496,614160,468170,2361,32336,9331,051,422269,587142,18658,750323,57511,060246,262–819,051251,44122,369550,245(5,004)7,415(124)171(902)6667,60475,067901,534Liabilities3,946,6703,569,547Liabilities and net assets4,725,6514,471,0814CONSOLIDATED STATEMENTS OF INCOME (Unaudited)FY2021 (Year ended March 31, 2022) and FY2020 (Year ended March 31, 2021)Item(Millions of yen)Year ended March 31,20222021Operating revenue:Electric utility operating revenueOther business operating revenueOperating expenses:Electric utility operating expensesOther business operating expensesOperating incomeNon-operating income:Dividend incomeInterest incomeGain on sales of goodsGain on sales of securitiesOtherNon-operating expenses:Interest expensesLoss on valuation of securitiesShare of loss of entities accounted for using equity methodOtherOrdinary revenueOrdinary expensesOrdinary incomeProvision or reversal of reserve for fluctuation in water levels:Provision of reserve for fluctuation in water levelsExtraordinary income:Gain on sales of securitiesExtraordinary loss:Contingent lossLoss on disasterLoss on return of imbalance income and expenditureIncome before income taxesIncome taxes – currentIncome taxes – deferredIncome taxesNet incomeNet income attributable to non-controlling interestsNet income attributable to owners of parent5(28,737)87,9192,110,0212,159,227(49,205)2,292,9132,225,39067,5222,104,4481,840,306264,1422,133,1851,888,503244,6815,5737913031,846-2,63226,04114,5283,7452,3395,42779797,5207,52026,4844520,4026,035(68,248)7,30228,45235,755(104,003)4,358(108,362)2,286,8032,067,053219,7492,198,8831,995,653203,2306,1108742406362,6741,68326,50615,4532,4273258,300—-13,027413,023-54,49531,222(9,678)21,54432,9513,57029,380CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)FY2021 (Year ended March 31, 2022) and FY2020 (Year ended March 31, 2021)(Millions of yen)Year ended March 31,20222021(104,003)32,951ItemNet incomeOther comprehensive income:Valuation difference on available-for-sale securitiesDeferred gains or losses on hedgesForeign currency translation adjustmentsRemeasurements of defined benefit plansShare of other comprehensive income of entities accounted for using equity methodOther comprehensive incomeComprehensive incomeComprehensive income attributable to:Comprehensive income attributable to owners of parentComprehensive income attributable to non-controlling interests1,7264,936730(4,741)(400)2,252(101,751)(106,216)4,464(251)79096024,832226,33359,28455,1354,1486CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) FY2021 (Year ended March 31, 2022) and FY2020 (Year ended March 31, 2021)FY2021(Millions of yen)Shareholders’ equityAccumulated other comprehensive incomeCapital stockCapital surplusTreasury sharesRetainedearningsTotal Shareholders’equityValuation differenceon available-for-salesecuritiesDeferred losseson hedgesBalance at the beginning of current period251,44122,369550,245(5,004)819,051(124)171(78)(20,033)(108,362)(1)4(739)(15)277(78)(20,033)(108,362)(15)2764(739)Total changes of items during the period -(78)(129,132)Balance at the end of current period251,44122,290421,113262(4,742)(128,949)690,1021,7321,7321,6074,5364,5364,708Accumulated other comprehensive incomeRevaluationreserve for landForeign currencytranslationadjustments666Remeasurementsof defined benefitplansTotal accumulatedother comprehensiveincomeNon-controllinginterestsTotal net assetsBalance at the beginning of current period(902)7,6047,41575,067901,534Changes of items during the periodChanges in parent’s ownershipinterests arising from transactionswith non-controlling interestsDividends of surplusNet income attributable to owners ofparentPurchases of treasury sharesDisposal of treasury sharesReversal of revaluation reserve forlandChange in scope of consolidationNet changes of items other thanshareholders’ equityChanges of items during the periodChanges in parent’s ownershipinterests arising from transactionswith non-controlling interestsDividends of surplusNet income attributable to owners ofparentPurchases of treasury sharesDisposal of treasury sharesReversal of revaluation reserve forlandChange in scope of consolidationNet changes of items other thanshareholders’ equityTotal changes of items during the periodBalance at the end of current period(78)(20,033)(108,362)(15)2764(739)6,394(122,554)778,980(4)(4)(907)6756751,341(4,797)(4,797)2,8072,1412,1419,5564,2534,25379,3217FY2020Shareholders’ equityAccumulated other comprehensive income(Millions of yen)Balance at the beginning of current period251,44122,390542,187(6,564)197(618)Capital stockCapital surplusTreasury sharesRetainedearningsTotalShareholders’equity809,454Valuation differenceon available-for-salesecuritiesDeferred losseson hedges(21)(20,004)29,380(1,325)7(1,431)2,991(21)(20,004)29,380(1,431)1,6657Total changes of items during the period -Balance at the end of current period251,441(21)22,3698,057550,2451,560(5,004)9,596819,051(322)(322)(124)790790171Accumulated other comprehensive incomeRevaluationreserve for landForeign currencytranslationadjustmentsRemeasurementsof defined benefitplansTotal accumulatedother comprehensiveincomeSubscriptionrights to sharesNon-controllinginterestsTotal net assetsBalance at the beginning of current period(895)(288)(16,727)(18,332)1,12071,935864,177Changes of items during the periodChanges in parent’s ownershipinterests arising from transactionswith non-controlling interestsDividends of surplusNet income attributable to owners ofparentPurchases of treasury sharesDisposal of treasury sharesReversal of revaluation reserve forlandNet changes of items other thanshareholders’ equityChanges of items during the periodChanges in parent’s ownershipinterests arising from transactionswith non-controlling interestsDividends of surplusNet income attributable to owners ofparentPurchases of treasury sharesDisposal of treasury sharesReversal of revaluation reserve forlandNet changes of items other thanshareholders’ equityTotal changes of items during the periodBalance at the end of current period(21)(20,004)29,380(1,431)1,665727,76037,356901,534(7)(7)(902)95495466624,33224,3327,60425,74825,748(1,120)(1,120)7,415 -3,1323,13275,0678CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) FY2021(Year ended March 31, 2022) and FY2020 (Year ended March 31, 2021)(Millions of yen)Year ended March 31,20222021ItemCash flows from operating activities:Income before income taxesDepreciationDecommissioning costs of nuclear power unitsAmortization of special account related to nuclear power decommissioningLoss on retirement of non-current assetsLoss on return of imbalance income and expenditureIncrease (decrease) in net defined benefit liabilityIncrease (decrease) in reverse for fluctuation in water levelsInterest and dividend incomeInterest expensesDecrease (increase) in notes and accounts receivable – tradeDecrease (increase) in inventoriesIncrease (decrease) in notes and accounts payable – tradeOther, netSubtotalInterest and dividend income receivedInterest expenses paidIncome taxes paidNet cash provided by operating activitiesCash flows from investing activities:Purchase of non-current assetsPayments of investment and loans receivableCollection of investment and loans receivableOther, netNet cash used in investing activitiesCash flows from financing activities:Proceeds from issuance of bondsRedemption of bondsProceeds from long-term loans payableRepayments of long-term loans payableIncrease in short-term loans payableDecrease in short-term loans payableProceeds from issuance of commercial papersRedemption of commercial papersCash dividends paidDividends paid to non-controlling interestsOther, netNet cash used in financing activitiesEffect of exchange rate change on cash and cash equivalentsNet increase(decrease) in cash and cash equivalentsCash and cash equivalents at beginning of the periodCash and cash equivalents at end of the period9(68,248)182,4457,8131,4234,9046,035(13,281)79(1,094)14,528(31,151)(27,663)81,473(15,042)142,2231,093(14,509)(31,618)97,188(276,127)(61,666)17,937(2,307)(322,163)249,183(70,000)257,642(193,741)9,144(6,674)721,000(648,000)(20,009)(1,058)(4,242)293,24355768,827209,593278,42054,495228,7847,59332710,164-(6,211)-(1,115)15,453(47,795)2,134(2,453)(11,876)249,5011,115(15,791)(17,207)217,617(296,701)(21,805)23,07940,466(254,961)229,340(185,000)120,600(172,444)3,400(3,400)198,000(171,000)(19,966)(1,050)(4,252)(5,774)389(42,728)252,322209,593(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.10