Korea Electric Power Corporation · KRX:015760
Korea Electric Power — Investor Presentation (March 2006)
25 slides from Korea Electric Power's investor presentation, Mar 3, 2006
Slide 1: Form 6-K Report of Foreign Private Issuer
SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the Month of February 2006 KOREA ELECTRIC POWER CORPORATION (Translation of registrant’s name into English) 167, Samseong-don
Slide 2: Form 6-K: investor conference notice
This Report of Foreign Private Issuer on Form 6-K is deemed filed for all purposes under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, including by reference in the Registration Statement on Form F-3 (Registration No. 33-99550) and the Registration Stat
Slide 3: Investor Presentation
* * * * * * Investor Presentation 2006. 3. 3. This material has been prepared by Korea Electric Power Corporation for the information of investors of the company. This is not intended as an offer or solicitation for the purchase or sale of any financial instrument or securities. While reasonable car
Slide 4: Table of Contents
* Table of Contents I. Overview II. Business &Operations III. Financial Profile IV. Strategic Initiatives 2
Slide 5: I. Overview
KOREA ELECTRIC POWER CORPORATION I. Overview
Slide 6: Power Monopoly in Korea
* Power Monopoly in Korea 96% 100% 100% Generation Transmission Distribution * Based on gross generation (FY2005) Assets KRW 75.0 trillion (USD 73.1 billion) Revenues KRW 25.2 trillion (USD 24.9 billion) Generating Capacity 55,954 MW Market Capitalization KRW 24.2 trillion (USD 23.9 billion) Credit
Slide 7: II. Business & Operations
* * * * * * * II. Business &Operations
Slide 8: Demand Growth
Demand Growth Historical Demand Growth & GDP (%) Demand Growth Forecast Demand Growth GDP Growth11.8 Sales Volume 2007 : 4.3% 8.5 7.6 8.0 5.4 6.3 6.5 5.9 2008 ~ 2011 : 3 –4% 3.8 7.0 4.6 3.1 4.0 • Forecast value for 2007 onward by MOCIE & KPX 5.0 • Actual results may differ from the forecast 2000 200
Slide 9: Tariff
* Tariff History of Tariff Adjustment 6.5% 5.9% 5.3% 4.2% 4.0% 2.8% 0.0% 0.0% -0.1% 0.0% -1.5% 1.9% 1995.5. 1996 1997.7. 1998.1. 1999.11. 2000.11. 2001 2002.6. 2003 2004.3. 2005.12. * Tariffs were increased by 1.9%, while the rate of The Electric Power Industry Basis Fund was decreased by 0.9% from
Slide 10: Fuel Price & Expense (1)
* Fuel Price & Expense (1) Fuel Price & FX trends 2003 2004 1/4 2/4 3/4 4/4 2005 Average Average 2005 2005 2005 2005 Average NEWC* Coal Price Index 25.3 53.3 50.7 51.7 47.6 39.1 47.3 USD/ton Dubai Oil Price 26.8 33.6 41.2 47.9 55.5 52.7 49.4 USD/barrel FX Rate* 1,191.8 1,143.7 1,022.1 1,008.1 1,029.
Slide 11: Fuel Price & Expense (2)
* Fuel Price & Expense (2) Strategy on Fuel Cost Saving • Maintaining optimal proportion of generation based on fuel type Sustaining over 80% of nuclear &coal generation, above 90% utilization rate of nuclear • Securing shares of foreign mines &fuel suppliers • Re-trying direct import of LNG Generat
Slide 12: III. Financial Profile
* * * * * * * III. Financial Profile
Slide 13: Capital Structure
* Capital Structure Capital Structure • Total SH’s Equity : KRW 41.4 trillion (USD 40.4 billion) Shareholder Mix as of December 31, 2005 • Total Liabilities : KRW 33.6 trillion (USD 32.7 billion) KDB 29.95% 54.02% Government 24.07% Treasury Stock 0.85% Liab. SH's Foreigners 29.59% 45% Equity Others
Slide 14: Debt Profile & Strategy
* Debt Profile & Strategy Debt Repayment Schedule 4.6 Total Maturing Debt FX Debt 3.8 3.2 Target Schedule 2.2 1.9 1.1 Trillion Won 0.6 0.7 0.3 0.4 0.7 0.8 0.3 0.6 2006 2007 2008 2009 2010 2011 2012 2013 2014 & after Debt Currency Mix Fixed vs. Floating Mix 2005 Target Fixed 60% Total Floating 40% KR
Slide 15: Improved Financial Status
* Improved Financial Status* (Unit: KRW bn) yoy 2002 yoy 2003 yoy 2004 yoy 2005** KWh sold(GWh) 8.0% 278,451 5.4% 293,599 6.2% 311,716 6.6% 332,413 Revenues 5.6% 21,366 6.6% 22,775 5.2% 23,956 5.3% 25,236 EBITDA 11.3% 9,953 3.6% 10,313 (3.8%) 9,916 (14.3%) 8,498 Operating Income 26.5% 5,047 3.5% 5,2
Slide 16: FY2005 Results
* FY2005 Results* (Unit : in billions of Korean Won) FY2004 FY2005 %change Operating revenues: 23,661 25,236 6.7% • Despite general economic slowdown, demand Sale of electric power 23,193 24,671 6.4% growth rate was decent to be 6.5% Other operating revenues 358 448 25.1% Revenues for other business
Slide 17: Capital Expenditure
* Capital Expenditure Conservative Official Forecast Nuclear Plant (in billion Won) Thermal Plant T&D Facility 9,584 9,431 8,642 8,717 7,191 2,009 3,124 3,510 6,202 3,491 1,427 971 2,911 2,287 1,610 1,902 2,197 1,145 3,567 3,722 4,173 4,311 4,081 3,329 2004A 2005A 2006F 2007F 2008F 2009F New Capacit
Slide 18: Major Financial Statistics
* Major Financial Statistics Operating & Net Profit Margin* Total Borrowing to Equity Ratio** 23.6% 22.9% 84.1% 19.7% 14.3% 18.6% 15.0% 59.9% 12.0% 65.1% 10.2% 9.7% 48.6% 48.6% 8.1% 2001 2002 2003 2004 2005 2001 2002 2003 2004 2005 EBITDA Interest Coverage* Average Debt Cost* KEPCO+GENCOs 10.5X 9.4X
Slide 19: IV. Strategic Initiatives
* * * * * * * IV. Strategic Initiatives
Slide 20: Core Values & Vision
Core Values & Vision Respecting Customers By standing on the basis of human-oriented spirit, KEPCO values the customer A World-Renowned satisfaction at the top priority Embracing Changes Utility Company Improve corporate competitiveness by actively coping with changing business environment, and enha
Slide 21: Mid-term Goal & Strategies
* Mid-term Goal & Strategies VISION A World-Renowned Utility Company KEPCO 2015 A World-Renowned Total Energy Provider Management Marketing & Business area Finance Human Resources System Service Establishment of Strengthening of HR management Stabilization of horizontal, Concentration of financial s
Slide 22: Overseas Business
Overseas Business Strategy • Domestic operations are KEPCO’score business • Risk management by countries and projects, and returns must justify carefully estimated risks • Minimizing risk through ‘risk & return analysis’ and ‘business portfolio’ • Project financing with minimal recourse to minimize
Slide 23: Industry Restructuring
* Industry Restructuring Initial Plan, Current Status & Future Plan Current Status Future Strategy • Be prepared to sell GENCOswhen price is right GENCO setup 6 GENCOsin operation, • Management control is on for sale Generation + Sale 100% owned by KEPCO • Improving the asset value to get right pric
Slide 24: Asset Sale
* Asset Sale Assets on Sale Book Value* Ownership Plan to Sell (in billion Korean Won) KOSEP 1,978 100.0% • Selling management control as originally planned KPS 278 100.0% • Listing on domestic exchange or selling to strategic investors KEPID 23 49.0% • Timing & method of selling is to be set by con
Slide 25: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. /s/ Kwang-Choong Kim Name: Kwang-Choong Kim Title: Treasurer Date: March 2, 2006
Korea Electric Power — Investor Presentation (March 2006) on 6ix