Tohoku Electric Power Incorporated : Financial Summary FY2021

April 28, 2022

Contents

FY2021 Financial Results

Summary of Financial Results

Changing Factors in Consolidated Ordinary Income

Electricity Sales, Major Factors and Sensitivity to Major Factors

Electricity Supply

Segment Information (Consolidated)

Results of Major Consolidated Subsidiaries

Balance Sheets (Consolidated)

Statements of Income (Consolidated)

Statements of Cash Flows (Consolidated)

Dividend for FY2021 / Financial and Dividend Forecast for FY2022

Trends of Operating Revenue and Each Income (Consolidated)

Time Lag between Fuel Cost and Fuel Cost Adjustment Charges

Retail Electricity Sales Volume by Month

Fuel Consumption Results

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Our Major Efforts for FY2021	・・・・	19
Making Steady Efforts to Restart Nuclear Power Reactors	・・・・	21
List of Major Renewable Energy Development/Participation Points of Our Group	・・・・	22
Efforts Towards Realizing Carbon Neutrality	・・・・	23
Investment in Growth Area Future Business Development	・・・・	24

Key points of financial results and forecasts

Topics

Key points of financial results and forecasts

Financial 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 Prefecture

Financial and Dividend Forecast for FY2022

Summary of Financial Results

2

Operating 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 income

-¥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.

  Net Income Attributable to Owners of Parent

  -¥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】

(billions of yen)

FY2020 (A)	FY2021 (B)	Change (B) - (A)	Change (B) / (A)
Operating Revenue*1	[ 2,286.8 1,867.2 ]	[ 2,104.4 2,104.4 ]	[ (182.3) 237.1 ]	[ 92.0 % 112.7 %]
Ordinary Income*1	[ 67.5 53.5 ]	[ (49.2) 56.7 ]	(116.7) [ 3.2 ]	[ - 106.1 %]
Net Income Attributable to Owners of Parent	29.3	(108.3)	(137.7)	- %
Consolidated Cash Income*2	302.3	257.3	(45.0)	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 Year

Decrease of -116.7 Billion Yen (67.5 → -49.2)

(billions of yen)

1.7

-16.6

Decrease in the

44.1

volume of retail Impact of supply electricity sales and demand due to the earthquake off the coast of

Change in depreciation method

Fukushima Prefecture

-50.0

OthersTime lag between fuel cost and fuel cost adjustment charges

24.1

67.5

Impact of JEPX prices increase

-120.0

-49.2

Ordinary income excluding time lag between fuel cost and fuel cost adjustment charges 53.5

Impact excluding Time lag between fuel cost and fuel cost adjustment charges：increase of about 3.2 billion yen

Ordinary income excluding time lag between fuel cost and fuel cost adjustment charges 56.7

• • Reaction to last year's impact ofCOVID-19

  5.7

• • Impact of temperature and competition

-4.0

FY2020

• Decrease in retirement benefit expenses 8.2

• Decrease in repair expenses 7.9

• Decrease in retirement expenses 3.3

FY2021