Tohoku Electric Power Incorporated : Summary of Financial Statements (Unaudited)

April 28, 2022

Tohoku 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, President

Tel : [phone]

(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 Results

Operating revenueOperating income

Ordinary incomeNet income attributable to owners of parent

Millions of yen

%

Year ended Mar. 31, 2022

Year ended Mar. 31, 2021

• 2,104,448 (8.0)

• 2,286,803 1.8

Millions of yen

%

Millions of yen

%

Millions of yen

%

(28,737) 87,919

- (24.4)

(49,205) 67,522

- (32.5)

(108,362)

29,380

- (53.4)

(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 per share Net income per share

(basic) (diluted)

Net income / EquityOrdinary income /

Total assetsOperating income / Operating revenue

Year ended Mar. 31, 2022

Year ended Mar. 31, 2021

Yen

Yen

%

%

%

(216.84)

58.81

- 55.88

(14.2)

3.6

(1.1) 1.5

(1.4) 3.8

(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.

(2) Changes in Financial Positions

Total assets

Net assets

Equity-to-asset ratioNet assets per share

Millions of yen

Millions of yen

%

Yen

Mar. 31, 2022

Mar. 31, 2021

4,725,651 4,471,081

778,980 901,534

14.8 1,399.90

18.5 1,654.46

(Reference) Shareholders' Equity (March 31, 2022: 699,659 million yen, March 31, 2021: 826,466 million yen)

(3) Situations of Cash Flows

Cash flows from operating activitiesCash flows from investing activitiesCash flows from financing activities

Cash and cash equivalents at end of the year

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended Mar. 31, 2022

Year ended Mar. 31, 2021

97,188 217,617

(322,163) (254,961)

293,243 278,420

(5,774) 209,593

2. Dividends

Cash dividends per share

1Q

2Q

3QYear-endAnnual totalDividends paid for the yearDividends payout ratioDividends / Net assets

Year ended Mar. 31, 2021

Year ended Mar. 31, 2022

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

- - -

20.00 20.00

- - -

20.00 15.00

40.00 35.00

20,034 17,529

68.0

- -

2.5 2.3

Year ending Mar. 31, 2023

(forecast)

-

-

-

(Note) The dividends for both interim and year-end FY2022 have yet to be determined at this time.

3. Business Results Forecast for Consolidated FY2022 (Year ending March 31, 2023)

Operating revenueOperating incomeOrdinary income

Net income attributable Net income per share to owners of parent (basic)

Millions of yen

%Millions of yen

%Millions of yen

%Millions of yen

%

Yen

FY2022

-

-

-

-

-

-

-

-

-

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 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 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)

Consolidated Cash Income

Millions of yen

Year ended Mar. 31, 2022

257,368

(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 Results

Operating revenueOperating income

Ordinary income

Net income

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Year ended Mar. 31, 2022

Year ended Mar. 31, 2021

1,566,203 1,734,962

• (9.7) (112,946)

(14.6)

5,742

- (93.9)

(86,871)

4,607

- (94.1)

(111,883)

(6,645)

- -

Net income per share Net income per share

(basic) (diluted)

Yen Yen

Year ended Mar. 31, 2022

Year ended Mar. 31, 2021

(223.88) (13.30)

- (12.73)

(Note) Percentage figures represent changes as compared to the same period of the previous year.

(2) Changes in Financial Positions

Total assets

Net assets

Equity-to-asset ratioNet assets per share

Millions of yen

Millions of yen

%

Yen

Mar. 31, 2022

Mar. 31, 2021

3,928,926 3,668,849

531,883 656,840

13.5 1,064.21

17.9 1,314.89

(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.

CONSOLIDATED BALANCE SHEETS (Unaudited)

FY2021 (As of March 31, 2022) and FY2020 (As of March 31, 2021)

Assets

(Millions of yen)

Item

March 31, 2022

March 31, 2021

Non-current assets:

3,809,140 3,731,366

Electric utility plant and equipment:

Hydroelectric power production facilities Thermal power production facilities Nuclear power production facilities Transmission facilities Transformation facilities Distribution facilities General facilities

Other electric utility plant and equipment

2,470,859 2,492,694

179,080 177,880

377,973 398,062

230,008 247,275

569,910 579,633

253,411 251,793

699,964 680,945

128,164 129,929

32,345 27,173

Other non-current assets

224,290 223,546

Construction in progress:

Construction and retirement in progress

Special account related to nuclear power decommissioning Special account related to reprocessing of spent nuclear fuel

566,782 449,526

513,305 399,393

22,700 24,124

30,776 26,009

Nuclear fuel:

Loaded nuclear fuel Nuclear fuel in processing

173,371 174,071

30,591 30,591

142,779 143,479

Investments and other assets:

Long-term investments Net defined benefit asset Deferred tax assets Other

Allowance for doubtful accounts

373,836 391,526

117,035 109,699

6,597 6,191

130,205 159,536

121,837 116,389

(1,840)

(290)

Current assets:

916,510 739,715

Cash and deposits

Notes and accounts receivable - trade Inventories

Other

Allowance for doubtful accounts

274,771 205,290

231,967 270,266

91,520 65,255

319,169 199,679

(918)

(777)Assets

4,725,651

4,471,081

Liabilities and net assets

Non-current liabilities:

Bonds payable

Long-term loans payable

Reserve for restoration costs of natural disaster

Net defined benefit liability

Asset retirement obligations

Deferred tax liabilities for land revaluation

Other

Current liabilities:

Current portion of non-current liabilities

Notes and accounts payable - trade

Accrued taxes

Other advances

Reserve for restoration costs of natural disaster

Other

Reserves under special laws:

Reserve for fluctuation in water levels

Shareholders' equity:

Capital stock

Capital surplus

Retained earnings

Treasury shares

Accumulated other comprehensive income:

Valuation difference on available-for-sale securities

Deferred losses on hedges

Revaluation reserve for land

Foreign currency translation adjustments

Remeasurements of defined benefit plans

Non-controlling interests

(Millions of yen)
March 31, 2022	March 31, 2021
2,754,009	2,518,124
1,180,000	1,025,000
1,194,940	1,117,549
7,498	6,614
154,094	160,468
173,885	170,236
1,309	1,323
42,281	36,933
1,192,581	1,051,422
282,522	269,587
222,513	142,186
17,652	58,750
305,379	323,575
21,458	11,060
343,055	246,262
79	-
79	-
3,946,670	3,569,547
690,102	819,051
251,441	251,441
22,290	22,369
421,113	550,245
(4,742)	(5,004)
9,556	7,415
1,607	(124)
4,708	171
(907)	(902)
1,341	666
2,807	7,604
79,321	75,067
Net assets	778,980	901,534
Liabilities and net assets	4,725,651	4,471,081

Liabilities

Item

Operating revenue:

Electric utility operating revenue

Other business operating revenue

Operating expenses:

Electric utility operating expenses

Other business operating expenses

Operating income

Non-operating income:

Dividend income

Interest income

Gain on sales of goods

Gain on sales of securities

Other

Non-operating expenses:

Interest expenses

Loss on valuation of securities

Share of loss of entities accounted for using equity method

Other

Ordinary revenue

Ordinary expenses

Ordinary income

Provision or reversal of reserve for fluctuation in water levels:

Provision of reserve for fluctuation in water levels

Extraordinary income:

Gain on sales of securities

Extraordinary loss:

Contingent loss

Loss on disaster

Loss on return of imbalance income and expenditure

Income before income taxes

Income taxes - current

Income taxes - deferred

Income taxes

Net income

Net income attributable to non-controlling interests

Net income attributable to owners of parent

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
FY2021 (Year ended March 31, 2022) and FY2020 (Year ended March 31, 2021)
Item
2022	2021
2,104,448	2,286,803
1,840,306	2,067,053
264,142	219,749
2,133,185	2,198,883
1,888,503	1,995,653
244,681	203,230
(28,737)	87,919
5,573	6,110
791	874
303	240
1,846	636
-	2,674
2,632	1,683
26,041	26,506
14,528	15,453
3,745	2,427
2,339	325
5,427	8,300
2,110,021	2,292,913
2,159,227	2,225,390
(49,205)	67,522
79	-
79	-
7,520	-
7,520	-
26,484	13,027
45	4
20,402	13,023
6,035	-
(68,248)	54,495
7,302	31,222
28,452	(9,678)
35,755	21,544
(104,003)	32,951
4,358	3,570
(108,362)	29,380

(Millions of yen)

Year ended March 31,