[Company analysis] The Tokyo Electric Power Co., Inc. (東京電力ホールディングス)

「The Tokyo Electric Power Co., Inc. (東京電力ホールディングス)」is the largest electricity company in Japan and Asia, and It is the fourth largest in the world. This company supplies electricity to the Kanto region of Japan. However, due to the Fukushima Daiichi Nuclear Power Plant accident in 2011, it is now nationalized. English abbreviation of this company is "TEPCO".The number of consolidated employees is approximately 41,086.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	The Tokyo Electric Power Co., Inc.
Company name (Japanese)	東京電力ホールディングス
Date of establishment	Tuesday, May 1, 1951
Headquarters location	〒100-8560 東京都千代田区内幸町1丁目1番3号
Capital	1,400,900
Consolidated sales	6,338,490
Consolidated operating profit	312,257
Consolidated total assets	12,757,467
Consolidated capital	2,903,699
Capital adequacy ratio	22.8%
Consolidated number of employees	41,086

 

 

 

2. Summary and Features

 
「Tokyo Electric Light(東京電燈)」which was founded in 1888, is the beginning of「Tokyo Electric Power」. In 1939, they started the aluminum refining business in collaboration with「Furukawa Electric Co., Ltd.,(古河電気工業)」and  later, this collaboration became connected to the establishment of「Nippon Light Metal Co., Ltd.(日本軽金属)」. After that, as part of the Japanese government's policy, this company was placed under controll of「Japan Electric Generation and Transmission Company(日本発送電株式会社)」, which was a semi-public and semi-private enterprise at that time.

In 1941, just before the Pacific War, power transmission business in Tokyo area was transferred to「Kanto Electric Power Distribution(関東配電)」. After the end of the war, GHQ carried out a business reorganization of「Kanto Electric Power Distribution」, and as a result, current「Tokyo Electric Power」was established by inheriting business area of「Kanto Electric Power Distribution」.

 

At present,「TEPCO」is supplying electricity to the Kanto region of Japan(Tokyo, Kanagawa, Chiba, Saitama, Ibaraki, Gunma, Tochigi) and some areas in Yamanashi and Shizuoka prefectures. As of April 1, 2015, total of 196 generators are in operation, generating 65,657,170 kW of electricity.「TEPCO」is the industry's largest company, responsible for about one-third of Japan's domestic electricity sales. It has the largest total assets and the largest number of employees in Japan and the largest in Asia, and the fourth largest in the world.

As described above, the overwhelming scale is regarded as the strength of「TEPCO」. Apart from this electric power business, they are also collaborating with「Sony Corporation(ソニー)」by utilizing more than 20 million customer informatio, in order to develop IOT related business. Another advantage that this company has, is the world's highest level of power transmission and distribution technology. However, due to the accident at the Fukushima Daiichi Nuclear Power Station in 2011, this company becamed nationalized and is now under the control of the government.

 

 

 

3. Major Business

 

■ Hydropower generation business
As of March 31, 2014, 164 power plants are generating 9,455,950 kW.

■ Thermal power generation
They own a total of 25 thermal power plants, with a total power generation capacity of 43,555,920 kW. Thermal power plants are located mainly in industrial areas such as Chiba and Kanagawa prefectures.

■ Nuclear power generation
Currently, they have three nuclear power plants that were operating at a total power generation of 12,261 2,000 kW, but since the Great East Japan Earthquake, all nuclear power plants have stopped operating.

■ Renewable energy power generation
「TEPCO」owns five renewable energy power plants with a total output of 51,670 kW.

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		5,357,734	5,850,939	6,338,490
Consolidated operating profit		258,680	288,470	312,257
Consolidated total assets		12,277,600	12,591,823	12,757,467
Consolidated net assets		2,348,679	2,657,265	2,903,699
Breakdown of sales	Holdings	68,113	61,533	63,828
	Power generation business	27,193	26,093	68,929
	Power grid business	293,877	388,230	524,473
	Energy partnership business	4,968,549	5,375,082	5,681,259