東北電力（9506） – Financial Summary FY2021

Financial SummaryFY2021( April 1, 2021 – March 31, 2022)April 28, 2022Tohoku Electric Power Co., Inc.ContentsFY2021 Financial ResultsKey points of financial results and forecastsSummary of Financial ResultsChanging Factors in Consolidated Ordinary IncomeElectricity Sales, Major Factors and Sensitivity to Major FactorsElectricity SupplySegment Information (Consolidated)Results of Major Consolidated SubsidiariesBalance Sheets (Consolidated)Statements of Income (Consolidated)Statements of Cash Flows (Consolidated)Dividend for FY2021 / Financial and Dividend Forecast for FY2022Trends of Operating Revenue and Each Income (Consolidated) Time Lag between Fuel Cost and Fuel Cost Adjustment ChargesRetail Electricity Sales Volume by MonthFuel Consumption ResultsTopicsOur Major Efforts for FY2021Making Steady Efforts to Restart Nuclear Power ReactorsList of Major Renewable Energy Development/Participation Points of Our GroupEfforts Towards Realizing Carbon NeutralityInvestment in Growth Area Future Business Development・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・12345678911121315161719212223241Key points of financial results and forecastsFinancial Result for FY2021 Operating revenue : Impact of the adoption of Accounting Standard for Revenue Recognition Ordinary Income : Impact of the time lag between fuel cost and fuel cost adjustment charges, rising JEPX prices and supply and demand due to the earthquake off the coast of Fukushima PrefectureFinancial and Dividend Forecast for FY2022 Summary of Financial Results2Operating revenue¥2,104.4 billion (a year on year decrease of ¥182.3 billion)• Operating revenue decreased due to the impact of the adoption of Accounting Standard for Revenue Recognition.Ordinary incomeNet Income Attributable to Owners of Parent-¥49.2 billion (a year on year decrease of ¥116.7 billion)• Ordinary income decreased due to an impact of the time lag between fuel cost and fuel cost adjustment charges caused by soaring fuel prices, an increase in procurement costs resulting from rising JEPX prices and the shutdown of thermal power stations damaged by the earthquake off the coast of Fukushima Prefecture.-¥108.3 billion(a year on year decrease of ¥137.7 billion)• Gain on sales of securities (stocks of group companies) was recorded as extraordinary income.• Costs for restoration of facilities damaged by the earthquake off the coast of Fukushima Prefecture in March 2022 and loss on return of imbalance income and expenditure were recorded as extraordinary loss.In addition, income taxes-deferred increased due to a partial reversal of deferred tax assets based on recent business performance trends.•【Summary of Consolidated Financial Statements】Operating Revenue*1Ordinary Income*1Net Income Attributable toOwners of ParentConsolidated Cash Income*2FY2020(A)FY2021(B)Change(B) – (A)[[]][[2,286.81,867.267.553.529.3302.3]][[2,104.42,104.4(49.2)56.7(108.3)257.3[[(182.3)237.1 ](116.7)3.2 ](137.7)(45.0)(billions of yen)Change(B) / (A)92.0 %112.7 %]-106.1 %]- %85.1 %*1 Lower figures of operating revenue are based on Accounting Standard for Revenue Recognition. Grant under act on purchase of renewable energy sourced electricity and surcharge for promoting renewable energy sourced electricity based on Feed-in Tariff Scheme for renewable energy, which were previously recorded as operating revenue, will no longer be recorded.Those of ordinary income 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 Year3Decrease of -116.7 Billion Yen (67.5 → -49.2)(billions of yen)1.7Decrease in the volume of retail electricity sales -16.6Impact of supply and demand due to the earthquake off the coast of Fukushima Prefecture44.1Change in depreciation method-50.0Others24.167.5• Reaction to last year’s impact of COVID-19competition• Impact of temperature and 5.7-4.0Impact of JEPX prices increaseTime lag between fuel cost and fuel cost adjustment charges-120.0• Decrease in retirement benefit expenses• Decrease in repair expenses• Decrease in retirement expenses8.27.93.3FY2020Ordinary income excluding time lag between fuel cost and fuel cost adjustment charges 53.5Impact excluding Time lag between fuel cost and fuel cost adjustment charges：increase of about 3.2 billion yen-49.2FY2021Ordinary income excluding time lag between fuel cost and fuel cost adjustment charges 56.7Electricity Sales, Major Factors and Sensitivity to Major Factors4Retail electricity sales67.3 TWh (a year on year increase 1.4 TWh)Retail electricity sales volume increased due to a rebound from a significant decrease in the previous year due to the impact of COVID-19.Wholesale electricity sales 16.7 TWh (a year on year increase 0.1 TWh)Wholesale electricity sales volume increased due to a decrease in JEPX transaction resulting from the shutdown of thermal power stations damaged by the earthquake off the coast of Fukushima Prefecture and a increase in wholesale in our franchise area.Electricity Sales*1FY2020(A)FY2021(B)Change(B) – (A)Change(B) / (A)Lighting (Residential)PowerRetail Electricity Sales*2Wholesale Electricity Sales*3Total of Electricity Sales21,96943,98365,95216,57182,52320,99046,35667,34616,71884,064(979)2,3731,3941471,541*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. (GWh)95.5 %105.4 %102.1 %100.9 %101.9 %(billions of yen)Major FactorsFY2020(A)FY2021(B)Change(B) – (A)Sensitivity toMajor FactorsFY2020(A)FY2021(B)Change(B) – (A)Crude Oil CIF Price ($/bbl.)Exchange Rate (¥/$)Hydro Power Flow Rate (%)Nuclear Power Utilization Rate (%)43.410596.1-77.211296.2-33.870.1-Crude Oil CIF Price (per $1/bbl.)Exchange Rate (per ¥1/$)Hydro Power Flow Rate (per 1%)192362338104154Electricity Supply5(GWh)101.7 %101.9 %-87.0 %96.7 %Electricity Supply*1Own Generated Power*2FY2020(A)FY2021(B)Change(B) – (A)Change(B) / (A)1,019101.7 %HydroThermalNuclearRenewables59,5137,89750,913-70360,5328,02851,891-612131978-(91)Power Interchanges*3Received33,41732,306(1,111)Transmitted(6,444)(4,575)1,86971.0 %Used at Pumped Storage and others(107)(314)(207)292.8 %Total of Electricity Supply*386,37987,9491,570101.8 %*1 Individual figures of Tohoku Electric Power Co., Inc., excluding network business.*2 “Own Generated Power” shows sending end (electric power generated by the generator minus the electric power used in the power station).*3 “Power Interchanges” and “Total of Electricity Supply” partly include projected volume.Segment Information (Consolidated)6(billions of yen)Major factors for change• Operating revenue decreased by ¥317.0 billion due to the adoption of the Accounting Standard for Revenue Recognition.• Ordinary income decreased due to an impact of the time lag between fuel cost and fuel cost adjustment charges, rising JEPX prices and the earthquake off the coast of Fukushima Prefecture.• Operating revenue decreased by ¥135.2 billion due to the adoption of the Accounting Standard for Revenue Recognition.• Ordinary income increased due to a decrease in 0.0depreciation resulting from change in depreciation method.• Ordinary income increased due to increases in 1.3power distribution and nuclear power improvement construction.FY2020(A)FY2021(B)Change (B) – (A)OperatingRevenue*OrdinaryIncomeOperatingRevenue*OrdinaryIncomeOperatingRevenue*OrdinaryIncomePower Generation and Sales1,735.51,602.81,648.91,498.113.9(83.0)(96.9)(132.7)(150.8)(60.8)(72.1)28.726.8(0.8)13.7793.1348.9299.9157.4207.399.911.710.0Network40.940.9Construction10.3853.9421.0271.1130.5208.186.2Subtotal3,068.876.02,903.2(20.3)(165.6)(96.3)Adjustment(782.0)(8.4)(798.8)(28.8)(16.7)(20.3)Total2,286.867.52,104.4(49.2)(182.3)(116.7)* Lower figures of operating revenue are sales to outside customers.Others10.7(0.7)• Ordinary income decreased due to higher raw material costs in gas business.Results of Major Consolidated Subsidiaries7FY2020(A) FY2021(B)NoteChange(B)-(A)29.046.5Increase in electricity sales(billions of yen)and Saes lPower generation ConstructionOthersSakata Kyodo Power Co., Ltd.Tohoku Sustainable & Renewable Energy Co., Inc.YURTEC CORP.Tohoku Electric Power Engineering & Construction Co., Inc.NIHONKAI LNG CO., LTD.Tohoku Intelligent Telecommunication Co., Inc.Toinx Co., Ltd.Kitanihon Electric Cable Co., Ltd.OperatingRevenueOrdinaryIncomeOperatingRevenueOrdinaryIncomeOperatingRevenueOrdinaryIncomeOperatingRevenueOrdinaryIncomeOperatingRevenueOrdinaryIncomeOperatingRevenueOrdinaryIncomeOperatingRevenueOrdinaryIncomeOperatingRevenueOrdinaryIncome* The amounts before elimination of inter-company transaction0.38.91.68.065.61.512.90.923.52.223.60.927.60.20.39.11.99.568.22.414.30.424.23.519.20.930.00.617.4(0.0)0.10.220.01.52.50.91.4(0.5)0.72.40.4Increase in sales of Feed-in Tariffs for hydroelectric power generationDecrease in depreciation due to change in depreciation methodIncrease in power distribution work for Tohoku Electric Power NetworkIncrease in nuclear improvement construction and general construction workIncrease in LNG purchase price (revenue)Discrepancy between LNG purchase price and sales price (income)Increase in new demand for generalDecrease in depreciation1.2(4.3) Decrease in facility utilization services for Tohoku Electric PowerDecrease in solution services for Tohoku Electric Power Network0.0Increase in sales of wires for general use186.9206.9Balance Sheets (Consolidated)8(billions of yen)Mar. 31, 2021(A)Mar. 31, 2022(B)Change(B) – (A)Major factors for changeTotal AssetsNon-current AssetsCurrent AssetsTotal LiabilitiesNon-current LiabilitiesCurrent LiabilitiesNet AssetsInterest-Bearing Liabilities4,471.03,731.3739.73,569.52,518.11,051.4901.54,725.63,809.1916.53,946.62,754.01,192.5778.9254.577.7377.1235.8141.1(122.5)176.7 Cash and deposits : 69.4Bonds:Long-term loans :155.077.3Notes and accounts payable – trade :80.32,433.22,760.3327.1Bonds : 180.074.1Loans :73.0:CPEquity Ratio18.5%14.8%(3.7%)FY2020(A)FY2021(B)Change(B) – (A)Capital Expenditure309.1311.42.2Statements of Income (Consolidated)9FY2020(A)FY2021(B)Comparison(B) – (A)(B) / (A)(billions of yen)Operating RevenueElectric utilityOther businessOperating ExpensesElectric utilityOther businessOperating IncomeNon-operating incomeNon-operating expensesOrdinary (Loss) IncomeProvision or reversal of reserve for fluctuation in water levelsExtraordinary IncomeExtraordinary IossIncome taxesNet (loss) income attributable to non-controlling interestsNet (loss) income attributable to owners of parent2,286.82,067.0219.72,198.81,995.6203.287.96.126.567.5–13.021.53.529.32,104.41,840.3264.12,133.11,888.5244.6(28.7)5.526.00.07.526.435.74.3(182.3)(226.7)44.3(65.6)(107.1)41.4(116.6)(0.5)(0.4)0.07.513.414.20.7(49.2)(116.7)(108.3)(137.7)92.0 %89.0 %120.2 %97.0 %94.6 %120.4 %91.2 %98.2 %203.3 %166.0 %122.1 %—–Statements of Income (Consolidated)10(billions of yen)Change(B) / (A)Major factors for change95.6% Decrease due to adoption of Accounting Standard for Revenue Recognition93.5% Decrease rates for regulated menu items97.2%122.7%Increased wide-area transmission of thermal power due to higher fuel pricesIncrease in wholesale in our franchise area (including continuous backup)Decrease due to adoption of Accounting Standard for Revenue RecognitionlEectric utility operating revenueRevenueRevenue from Electricity SalesLighting (Residential)PowerSales of power to other utilities and other companiesGrant under Act on Purchase of Renewable Energy Sourced ElectricityOther revenueSub totalOther operating revenue[Operating Revenue]Non operating revenueTotal revenuePersonnelFuelMaintenanceDepreciationPower purchased from other utilitiesand other companiesTaxes, etc. Nuclear power back-end costLevy under Act on Purchase of Renewable Energy Sourced ElectricityOther expensesSub totalexpenseslEectric utility operating ExpensesOther operating expensesNon operating expensesTotal expenses[Operating Income]Ordinary IncomeProvision or reversal of reserve forfluctuation in water levelsExtraordinary IncomeExtraordinary lossIncome taxesIncome attributable to non-controlling interestsProfit attributable to owners of parent[[ 2,104.4 ][FY2020(A)1,236.4528.5707.8435.1254.0141.42,067.0219.72,286.8 ]6.12,292.9148.8282.4160.5207.1751.683.27.5165.6188.51,995.6203.226.52,225.3–13.021.53.529.3[87.9 ]67.5[FY2021(B)1,182.3494.3688.0534.0-123.81,840.3264.15.52,110.0136.3484.2152.6161.4674.484.97.8-186.51,888.5244.626.02,159.2(28.7)](49.2)0.07.526.435.74.3(108.3)Change (B) – (A)(54.0)(34.2)(19.8)98.9(254.0)(17.5)(226.7)44.3[ (182.3) ](0.5)(182.8)(12.5)201.8(7.9)(45.6)(77.1)1.60.2(165.6)(1.9)(107.1)41.4(0.4)(66.1)[ (116.6) ](116.7)07.513.414.20.7(137.7)-87.6%89.0%120.2%92.0% ]91.2%92.0%91.6%102.0%102.9%99.0%94.6%120.4%98.2%97.0%[]——171.5% Increase in CIF price95.1%78.0% Decrease due to change in depreciation method89.7% Decrease due to adoption of Accounting Standard for Revenue RecognitionDecrease due to adoption of Accounting Standard for Revenue RecognitionGain on sales of securities (Stocks of group companies)203.3% The earthquake off the coast of Fukushima Prefecture in March 2022Loss on return of imbalance income and expenditure166.0% Reversal of deferred tax assets122.1%Statements of Cash Flows (Consolidated)11FY2020(A)FY2021(B)Change(B) – (A)Major factors for change(billions of yen)217.697.1(120.4)(254.9)(322.1)(67.2)(5.7)293.2299.0Bonds : 134.8 : 118.2Loan46.0:CPNet Cash Flows(42.7)68.8111.5209.5278.468.8Free Cash Flows*(22.6)(211.5)(188.8)*Our definition;Free Cash Flows =（Cash Flows from Operating Activities) + (Cash Flows from Investing Activities) – (Interest and dividend income) – (Interest expenses)Cash Flows from Operating ActivitiesCash Flows from Investing ActivitiesCash Flows from Financing ActivitiesCash and cash equivalents at end of the periodDividend for FY2021 / Financial and DividendForecast for FY202212■ Dividend for FY2021Our dividend policy is based on the payment of stable dividends, which are determined by comprehensively taking into account the financial results and the medium- to long-term outlook for income and expenditure for the fiscal year under review.In addition to the impact of the time lag between fuel cost and fuel cost adjustment charges caused by soaring fuel prices and the impact of the earthquake off the coast of Fukushima Prefecture in February last year and March this year, as well as the partial reversal of deferred tax assets, we recorded a significant loss for this fiscal year.In consideration of these circumstances, we have decided to pay a year-end dividend of 15 yen per share for FY2021.As a result , the annual dividend for FY2021, including the interim dividend of 20 yen per share, will be 35 yen per share.■ Consolidated Financial Forecast for FY2022The financial forecast for FY2022 is undecided because it is difficult to make a reasonable estimate at this time due to the 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 March of this year.It 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.■ Dividend Forecast for FY2022Since it is difficult to reasonably assess the forecast of financial result, both the interim and year-end dividends have yet to be determined.Trends of Operating Revenue and Each Income (Consolidated) (1/2) 13■ Operating Revenue(billions of yen)2,500.02,071.32,244.32,246.32,286.82,104.41,761.71,835.91,750.31,679.4FY2017FY2018FY2019FY2020FY2021Note : Red line shows operating revenue (consolidated) excluding grant under act on purchase of renewable energy sourced electricity, the surcharge for promoting renewable energy sourced electricity, and the self-contracted portion due to indirect auction, etc. FY2021 is after the application of the “Accounting Standard for Revenue Recognition.”■ Operating Income(billions of yen)107.683.6116.387.9-28.7 FY2017FY2018FY2019FY2020FY2021Operating Income on Operating Revenue Ratio (Consolidated basis)Operating Income on Operating Revenue Ratio using above red line (Consolidated basis)5.2%6.1%3.7%4.6%5.2%6.6%3.8%5.2%-FY2017FY2018FY2019FY2020FY20212,000.01,500.01,000.0500.00.0150.0100.050.00.0-50.0Trends of Operating Revenue and Each Income (Consolidated) (2/2) 14■ Ordinary Income(billions of yen)103.488.483.765.799.977.967.553.556.7-49.2 FY2017FY2018FY2019FY2020FY2021Note : Red line shows operating revenue (consolidated) excluding time lag between fuel cost and fuel cost adjustment charges.■ Net Income or Net Income Attribute to Owners of Parent (billions of yen)47.246.463.029.3-108.3 150.0100.050.00.0-50.0100.050.00.0-50.0-100.0-150.0FY2017FY2018FY2019FY2020FY2021Time Lag between Fuel Cost and Fuel Cost Adjustment Charges15■ Image of Time Lag EffectThe effect of pushing down income by about 120.0 billion yencompared to the previous year due to the upward trend in fuel pricesProfit of 14.0 billion yen in FY2020Loss of 106.0 billion yen in FY2021FY2020FY2021LossProfitLossAverage Fuel PricePrice of imported fuel４月 ５月 ６月 ７月 ８月 ９月 10月 11月 12月 １月 ２月 ３月 ４月 ５月 ６月 ７月 ８月 ９月 10月 11月 12月 １月 ２月 ３月4/2010/211/227/217/204/211/2110/20Retail Electricity Sales Volume by Month16（GWh）AprMayJunJulAugSepOctNovDecJanFebMarTotalLighting (Residential) 1,8061,5811,2111,2901,5881,4121,2621,5261,9312,6942,4282,26120,990FY2021Power3,6003,5123,7123,9574,0723,7683,6743,6463,9254,3144,1604,01546,356Retail Electricity Sales5,4075,0934,9235,2465,6605,1804,9365,1725,8577,0086,5886,27667,346AprMayJunJulAugSepOctNovDecJanFebMarTotalLighting (Residential) 2,0431,6641,3071,3101,5001,6391,4221,5541,9392,8802,4252,28721,969FY2020（GWh）Power3,4653,2343,4143,5423,7263,8133,5593,4593,7964,1963,9303,84843,983Retail Electricity Sales*Total may not match due to rounding.5,5084,8994,7214,8525,2265,4524,9825,0135,7347,0766,3556,13565,952Fuel Consumption Results17■ Fuel ConsumptionFY2020(A)FY2021(B)Change(B) – (A)(ten thousand tons, ten thousand kl)1,000CoalHeavy and Crude OilLNG92079983982682621408920423709421(38)900800700600500400300200100043841240837035222142*Above figures are fuel consumption of Tohoku EPCO and remote islandFY2018FY2019FY2020FY2021[Reference] Historical CIF Prices of Crude Oil, Fuel Coal and LNGCoal(ten thousand tons)Heavy and Crude Oil(ten thousand kl)LNG(ten thousand tons)（ $ / b ・$ / t ）220200180160140120100806040200LNG (right scale)Fuel CoalCrude oil（$ / t ）1,0009008007006005004003002001000TopicsOur Major Efforts for FY2021 (1)19Thorough enhancement of competitiveness through drastic reforms to our power supply business Renewable energy130 MW. Participated in 27 development projects. In case that all the projects are operationalized, the ownership capacity is about 600 MW. (As of the end of March, 2022) As for those projects that started its operation in FY2021, the ownership capacity is about Tohoku Electric Power Renewable Energy Service Co., Inc., established to handle renewable energy O&M business. (April) Nuclear power(Onagawa Nuclear Power Station Unit 2) Approval for construction plan (December) Application for approval of license amendment of Special Facility for Severe Accident Announcement of rescheduling of completion date of construction work on safety Application for Pre-Service Checking to conduct Pre-Service Operator InspectionsManagement (January 2022)measures (March 2022)(March 2022) Fuel purchasing,Thermal power, Wholesale Joetsu Thermal Power Station Unit 1 started its operation as a test run. (March 31, 2022) Countermeasures such as optimizing supply and demand have been implemented, which led to cost reduction. (Optimum vessel assignment under a long-term LNG contract, Making use of short-term contract considering the current situation of the fuel market, and so forth) Tohoku Electric PowerNetwork Strengthening resilience (Collaboration agreement with NTT East Japan was concluded. Agreement on mutual cooperation with 2nd and 9th Regional Coast Guard Headquarters in case of emergency such as disasters was concluded.) Streamlining (Established Kaizen Promotion Committee, initiated by the Vice President as CKO (Chief Kaizen Officer), Integration of load dispatching center. (Load dispatching center in Aomori and Miyagi were integrated.) Enhancement of Network（Efforts towards realizing optimal control over supply and demand combining renewable energy, storage batteries, and EMS)Our Major Efforts for FY2021 (2)20Attempt to quickly achieve profitability with our smart society building business Establishment of a new company leading the smart society building business Services for Households Electricity + Combined Service Package Menu (Tohoku EPCO Frontier’s “Simple Denki with Netflix”, and various menus to enrich your life)(from November) Covered area of “Support for living safe” (plan for individual houses), a housing equipment repair service, was expanded (August), and the same service for condominiums is also available. (February) Rates and plans combining power and gas such as Tobu Gas and Shiogama Gas started to be offered in June and November, respectively. Corporate Services Solutions for the Next, a website offering solutions services, launched. (November) Creation and energy-saving indoor farm system, a solution service to help retailers and farmers achieve sustainable agriculture, is launched. (November) Next-generation Energy Service Verification business of renewable energy aggregation started. Business alliance with a house maker related to Aozora Charge Service (solar power and storage batteries service under a PPA, provided by Tohoku Electric Power Solar e-Charge), Expansion of service to Kanto areaEvolve our management base, which supports the creation of our corporate value Environment Social Governance Reduction target of CO2 emission for FY2030 and specific measures is formulated and unveiled to accelerate the implementation of “Tohoku Electric Power Group Carbon Neutral Challenge 2050” Development of renewable energy by using green loan, and purchasing funds for renovation steadily. Disseminating message from the President and diversity promotion. Aiming for nurturing self-sustaining human resources, a new education platform called T-next using AI starts to be operated. “Tohoku Electric Power Group Sustainability Policy” is set out, and sustainability promotion scheme is arranged.Making Steady Efforts to Restart Nuclear Power Reactors21 We steadily implemented initiatives to improve safety while obtaining the understanding of the local communities. Onagawa Nuclear Power Station①Permission for application for approval of license amendment (February 26, 2020) ②Approval for construction plan (December 23, 2021)③The application for approval of safety regulations is currently being prepared for amendment.Currently, additional ground improvement work for seawalls, installation of venting equipment for containment vessels with filters and earthquake resistant reinforcement construction on pressure control room are underway with the aim of completing the work in November 2023.On March 30, an application for Pre-Service Checking was submitted to the Nuclear Regulation Authority.The main inspection process is as follows.1.Inspections during the fuel bundles insertion by November 20232.Inspections at the beginning stage of criticality reaction operations by February 20243.Inspections at the time of construction completion by April 2024.After the inspection described in “2”, the reactor start-up operation will be performed. Based on other companies’ examples and our past performance, the timing of the generators running in parallel after that is assumed to be February 2024. Higashidori Nuclear Power Station①Currently, the review of the assessment of earthquake and tsunami is underway.*Assessment of ground motion and tsunami standards is underway.Sea wall 29m above sea level ofOnagawa Nuclear Power StationCurrently earthquake resistant construction and installation of venting equipment for containment vessels with filters and emergency response facilities are underway with the aim of completing the work in FY2024.HigashidoriOnagawaPanoramic view of HigashidoriNuclear Power Station①Assessment on application for approval of license amendment (Basic Policy and Basic Design)Assessment on earthquake and tsunamiAssessment of power stations (facilities)PermssoniiPreparationfor startupResumption②Assessment on application for approval of construction plan (Detailed Design)SupplementaryApplicationApprovalPre-Service Operator InspectionsPre-Service Checking by the NRA③Assessment on application for approval of safety regulations(Necessary measures for security)SupplementaryApplicationApproval■Construction work on safety measures (Reflecting findings and assessments from conformity assessment)Completion of Construction■Activities to obtain the understanding of local communities(Clear and detailed explanation of the necessity of nuclear power stations and safety measures taken)Conformity assessmentConstruction work on safety measuresPre-Service OperartorInspectionsConformity assessmentConstruction work on safety measuresassessmentConformity List of Major Renewable Energy Development/Participation Points of Our Group22Under constructionOffshoreWindOnshoreWindProject Name① Tsugaru Offshore Wind② Happo-Noshiro Offshore Wind③ Akita and Noshiro Port Offshore Wind④ Fukaura Wind⑤ Noshiro-Yamamoto Regional Wind⑥ Oritsumedake South 1 Wind⑦ Inaniwa Takko Wind⑧ Inaniwa Wind⑨ Shiroishi Kosugo Wind⑩ Southern Abukuma Wind⑪ Tabito Central Windfarm⑫ Inego-Toge Windfarm⑬ Miyagi Kami Windfarm⑭ Takko Wind (tentative name)⑮ Shimokita⑯ JRE Sakata ReplaceGeothermal ⑰ Kijiyama (tentative name)Hydroelectric⑱ Tamagawa No.2 Hydroelectric⑲ Naruse River⑳ Shin-KamimatsuzawaSolar ㉑ TsuhazeBiomass㉒ Chokai-Minami㉓ Niigata East PortOperation startedProject NameOnshoreWind❶ Windfarm Tsugaru❷ Shichinohe-Towada Wind❸ Tsuruoka Hachimoriyama WindSolar ❹ Miyagi Osato Solar Park（As of December 2021）ScheduledCommercialOperation DateAfter FY2028Approx.79.8MW(Max)After FY2027Approx.42MWApprox.75.6MW(Max)Approx.96MWApprox.27.5MW(Max)OutputApprox.480MWApprox.356MWApprox.140MWApprox.70MWApprox.100MWApprox.44MWApprox.100MWApprox.100MWApprox.38MWApprox.90MWApprox.54.6MW14.9MW14.6MW(Max)2.3MW(Max)9.4MW(Max)35MW52.9MW50MWOutput121.6MW30.5MW13.6MW37.5MWAfter FY20282022After FY2024After FY2023Jan. 2023After FY2025After FY2025After FY2024After FY2025After FY2027April 2024After FY2027After FY2027FY20262029Oct. 2022FY2034Nov. 2031March 2023Oct. 2024Oct. 2024Operation DateApril 2020Dec. 2021Nov. 2021Oct. 2021* These projects include surveys of potential developmentTotal output share 600 MW*Value in case of all commercialization❶ ⑳①④❷⑭⑮⑥⑦⑧②③⑤③⑰㉒⑯❸⑲⑬❹⑱⑫⑨㉓⑩⑪(Tsu, Mie)㉑Tsuhaze●:Wind ●:Hydroelectric ●Solar ●:Geothermal ●:BiomassEfforts Towards Realizing Carbon Neutrality23 Based on “Tohoku Electric Power Group Carbon Neutral Challenge 2050”, specific initiatives are being promoted in the three pillars of making the most use of renewable energy and nuclear power, decarbonization of thermal power, and electrification and realization of smart society. The CO2 emissions reduction target for FY2030 was set to halve from the FY2013 level, achieving a reduction of approximately 34% in FY2020 compared to the FY2013 level.Efforts towards realizing carbon neutralityCO2 Reduction Target and Progress123 Piling up projects towards achieving new development of renewable energy of 2GWMaking the most use of renewable energy and nuclear power Early resumption of operation at nuclear power stations and continuous safe operation after that ＜Construction work on safety measures is scheduled to be completed below＞Onagawa Unit 2: November 2023, Higashidori Unit 1: FY2024 Demonstration of hydrogen and ammonia co-firing in Niigata Decarbonization of thermal power Thermal Power StationThermal Power Station Demonstration of black pellet to co-fire with coal at Noshiro Demonstrative study on cultivating biomass raw materials at unused land of power plantElectrification and realization of smart society In order to spread electrical vehicles, approx. 2,700 company vehicles are to be switched to EVs such as plug-in hybrid cars (Excluding special cars) Electrification including heat source conversion is suggested and business through distributed power sources is expanded Renewable energy aggregation business is promoted*Services that collect renewable energy to a site and make use of it locally45.63million ton-CO2-34%30.12million ton-CO2halve2013Baseline2020Results2030TargetInvestment in Growth Area Future Business Development24 In order to realize “Working alongside Next”, our group regard renewable energy business including enhancing distribution and transmission network and smart society building business as a medium and long term growth area. Going forward, we will invest approx. ¥400 billion by around 2030, expand our businesses, and increase profitability as soon as possible.Scale of Investmentby 2030Major effortsEffect, Return (Target)Renewable energyPower resource developmentOver 100 billion yenRenewable energyInvestment in network（Enforcing power grid)Approx.200 billion yen GrowthBusinessSmart society building businessApprox. 100 billion yen Aiming for developing 2GW as early as 2030 onwards (Strengthening in-house development and expanding the covered area) Setting out our strategies and plans by seeing the whole picture of renewable energy Maintaining and expanding of hydropower and geothermal power facilities by drastic repairs of aging facilities Developing O&M businesses through Tohoku Electric Power Renewable Energy Service Expand the capacity of transmission network (Enforcing power grid Effective use of the existing network (N-1 power control, Control Next-generation devise to distributed network, Smart meter was and core system)output fluctuation）applied Optimal control over demand and supply by using renewable, storage batteries, and EMS（FY2030） Consolidated cash incomeApprox. 20 billion yen Decarbonization Sustainable stable power supply Optimization of the power transmission and distribution network Tohoku EPCO Frontier: Provide packaged plans that combine ”Electricity” with “a variety of services” (Simple Denki with Netflix) and various menus to enrich your life Tohoku EPCO Solar e Charge: Provide a service that combines solar power with storage batteries (Aozora Charge Service) VPP business, Renewable energy aggregation business Regional project, Smart city initiative Support to safe and secure life, sustainable agriculture, and so on（FY2030） Sales Approx. 100 billion yen Consolidated cash incomeApprox. 20 billion yen While boosting profitability at early stage, we aim to seek steady growth towards FY2030 onwards through expanding consolidated cash income. We will proceed drastic structural reform of power supply business, as well as maintaining fiscal discipline and securing sound financial situation. We aim to hit the fiscal target stipulated in “Working alongside Next” by enhancing capital efficiency in investment.(Note)This presentation 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.