CEZ As · PSECZ:CEZ
CEZ As — Investor Presentation (September 2003)
51 slides from CEZ As's investor presentation, September 2003
Slide 1: ČEZ - Czech power company
10.16A 26.8.2003 MH ČEZ - Czech power company ČEZ GROUP September 2003 duhová energie 1
Slide 2: Table of Contents
Table of Contents 10.13A 1.9.2003 MH ČEZ - Basics 2002 4 The Czech Power Industry 5 GDP and Electricity Consumption in the Czech Republic 6 Electricity Demand in the Czech Republic Scenarios 7 Electricity Demand Structure 8 Average Weekly Peak Loads on the Transmission Grid Level 9 ČEZ Milestones 10
Slide 3: Table of Contents - Continuation
Table of Contents - Continuation 10.14A 1.9.2003 MH NPP Dukovany - Performance Results 28 Public Opinion Research about Nuclear Power Plants (%) 29 Insurance of the Nuclear Power Plants of ČEZ 30 Regulation and Prices in Power Industry 31 New Energy Policy of the Czech Republic 32 Progress in Establ
Slide 4: ČEZ - Basics 2002
ČEZ - Basics 2002 10.2A 26.8.2003 MH • Dominant power producer in the Czech Republic • Successful player on the competitive European market • 49,873 GWh - net electricity generation in 2002 • 11,146 MW in operation (from 04/2003 12,153 MW) * • 1,000 MW in construction (from 04/2003 0 MW) * • 7,250 e
Slide 5: The Czech Power Industry
10.3A 17.05.2001 ZM The Czech Power Industry Position of ČEZ Nuclear Power Ownership Restructuring Operational and Financial Results duhová energie 5
Slide 6: GDP and Electricity Consumption in the Czech Republic
GDP and Electricity Consumption in the Czech Republic 1.13A 31.3.2003 PL 160% 144.2 139.6 140% 133.7 130.6 128.2 127.1 126.5 124.4 117.5 118.8 120% 113.4 112.1 110.9 115.1 120.9 109.2 112.9 111.3 112.6 109.3 111.4 108.3 109.5 112.4 103.2 106.5 102.2 107.9 107.9 100% 104.9 101.8 104.0 102.7 102.8 100
Slide 7: Electricity Demand in the Czech Republic Scenarios
Electricity Demand in the Czech Republic Scenarios 1.43 30.4.2003 MH 70,000 66,000 Reality (1993 – 2002) 62,000 ČEZ scenario (2003 – 2010) 58,000 TWh 54,000 50,000 46,000 42,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Zone according to Tractebel scen
Slide 8: Electricity Demand Structure
Electricity Demand Structure 1.8A 26.8.2003 MH 1993 2002 2005* 18% 18% 19% 23% 22% 5% 5% 25% 4% 4% 2% 2% 1% 1% 1% 49% 53% 48% Industry Households Commerce and Business Services Transport Construction Agriculture and forestry *) Estimation duhová energie 8
Slide 9: Average Weekly Peak Loads on the Transmission Grid Level
Average Weekly Peak Loads on the Transmission Grid Level 1.14A 30.04.2003 MH (for days Tue-Fri, recalculated for 50 Hz and standard temperature) 11,000 10,000 9,000 MW 8,000 7,000 6,000 5,000 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 Week 1989 2001 2002 duhová energie 9
Slide 10: ČEZ Milestones
ČEZ Milestones 2.2A 8.4.2003 MH 1990 Separation of regional distribution companies, heat and other activities 1992 ČEZ established as Joint-Stock Company 1993 ČEZ partially privatized (27%) Regional distribution companies established as joint-stock companies 1995 Partial privatization of regional di
Slide 11: Power in the Czech Republic in Brief in 2002
Power in the Czech Republic in Brief in 2002 1.1A 31. 03. 2003 PL Czech Republic Czech power market and Installed capacity its participants as of 31st December 2002 16,311 MW Maximum load in 2002 11,205 MW ČEZ - Net electricity generation 70,393 GWh sale of purchased energy 5.8% ČEZ - IPP sale of it
Slide 12: Scheme of the Power Supply in the Czech Republic in 2002
Scheme of the Power Supply in the Czech Republic in 2002 in GWh (index 02/01) 1.4A 26.08.2003 MH Pumped Sale in power Transmission Other Import** Export** Distribution storage plant grid losses* consumption network power plants premises losses Households 479 28 694 494 4,085 16,298 4,061 14,122 (99.
Slide 13: ČEZ´s Share in the Installed Capacity of the Czech Republic
ČEZ´s Share in the Installed Capacity of the Czech Republic 1.12A 31.7.2003 MH 14,285 13,826 13,793 14,937 15,073 15,293 15,216 15,324 15,443 16,311 17,308 20,000 18,000 16,000 5,155 14,000 5,165 (30%) 3,938 4,074 4,393 5,065 5,178 5,297 3,630 3,591 12,000 (25%) 3,609 MW 10,000 8,000 6,000 12,153 10
Slide 14: Position of ČEZ
10.4A 18.05.2001 ZM The Czech Power Industry Position of ČEZ Nuclear Power Regulation and Prices in Power Industry Ownership Restructuring Operational and Financial Results duhová energie 1
Slide 15: ČEZ Mission Statement
ČEZ Mission Statement 2.1A 02.05.2003 MH …to meet demand for electricity and ancillary services of both traditional and newly acquired customers on the basis of successful market operation. ČEZ will reliably supply safely and environmentally friendly produced electricity, using preferentially its ow
Slide 16: ČEZ Business Vision
ČEZ Business Vision 2.24A 31.03.2003 MH To ensure optimum level of electricity sales, enabling efficient use of production capacities, to be a respected, sought-after, reliable commercial partner and an attractive employer of skilled employees, and thus to ensure an attractive return on equity and a
Slide 17: System of Management of ČEZ
System of Management of ČEZ 2.6A 26.8.2003 MH GENERAL MEETING, SUPERVISORY BOARD board of directors internal audit internal audit administration and management CEO executive officers executive executive executive executive executive executive executive executive executive executive executive executi
Slide 18: ČEZ Power Plants
ČEZ Power Plants 2.8A 02.05.2003 MH ÚSTÍ nad LABEM LEDVICE II, III POŘÍČÍ II TUŠIMICE II MĚLNÍK II, III DVŮR KRÁLOVÉ POČERADY MĚLNÍK MRAVENEČNÍK PRUNÉŘOV I, II ŽELINA HR. KRÁLOVÉ KARLOVY VARY DĚTMAROVICE PRAHA PARDUBICE DLOUHÉ STRÁNĚ I, II TISOVÁ I, II CHVALETICE OSTRAVA VRANÉ ŠTĚCHOVICE I ŠTĚCHOVIC
Slide 19: Installed Capacity of ČEZ
Installed Capacity of ČEZ 2.16A 31.07.2003 MH 11,146 12,153 12,168 14,000 12,000 1,869 1,869 10,000 1,869 3,760 3,775 8,000 2,760 MW 6,000 4,000 6,517 6,524 6,524 2,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003* 2004* 2005* Coal power plants Clean coal power plants Nuclear power plant
Slide 20: ČEZ´s Coal-fired Power Plants Emissions
ČEZ´s Coal-fired Power Plants Emissions 5.1A 1.4.2003 PL 800 Index 2002/1993 SO2 9% 700 NOx 51% Fly-ash 5% 600 CO 27% 500 kt 400 300 200 SO2 100 NOx Fly-ash 0 CO 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 duhová energie 2
Slide 21: Balance of Electricity in the Czech Republic
Balance of Electricity in the Czech Republic 1.10A 02.04.2003 PL Balance of import and export of the others 70,000 636 1,949 996 1,023 1,388 60,000 777 17 1,598 1,902 15,991 4,204 50,000 13,328 14,486 16,590 17,220 12,437 18,646 40,000 22,624 22,485 GWh 30,000 22,230 20,000 46,445 46,361 48,008 45,7
Slide 22: ČEZ Electricity Supply Structure
ČEZ Electricity Supply Structure 2.15A 2.4.2003 PL 60 4% 3% 50 40 47% 35% 30 TWh 20 50% 61% 10 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003* 2004* 2005* Coal power plants Clean coal power plants Nuclear power plants Hydro power plants *) Estimation duhová energie 2
Slide 23: Number of ČEZ Employees as of December 31
Number of ČEZ Employees as of December 31 4.1A 2.4.2003 PL 14,000 13,723 13,000 12,143 12,000 11,664 ČEPS 11,280 11,157 11,000 10,314 10,000 9,749 483 9,278 9,000 483 ČEZ 8,011 8,000 9,266 ČEZ 7,677 459 8,795 427 7,000 ČEZ 7,552 ČEZ 7,250 6,706 6,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Slide 24: Nuclear Power
10.5A 18.05.2001 ZM The Czech Power Industry Position of ČEZ Nuclear Power Regulation and Prices in Power Industry Ownership Restructuring Operational and Financial Results duhová energie 2
Slide 25: NPP Temelín - Main Events
NPP Temelín - Main Events 2.26A 15.04.2003 MH 1986 Building permit issued 1987 Construction of operational buildings commenced 1990 Construction of units No. 3 and 4 stopped 1993 Contracts ČEZ - Westinghouse signed 1995 Transformation of the main contracts ČEZ - Škoda Praha 1995-1998 Change of cabli
Slide 26: NPP Temelín – Details
NPP Temelín – Details 2.27A 02.05.2003 MH Type of reactor PWR - pressurized water reactor, as majority of reactor types in the world, proven types in CIS, Slovakia, Finland, Hungary and Bulgaria (totally different from Chernobyl reactor) Basic description Based on the original Russian technical desi
Slide 27: NPP Temelín - the Most Important Improvements of the Design
NPP Temelín - the Most Important Improvements of the Design 2.29A 31. 03.2003 MH Replacement of the instrumentation and control system (I&C) Replacement of the nuclear fuel Replacement of the radiation monitoring system Replacement of the diagnostic and monitoring system Replacement of the cabling (
Slide 28: NPP Dukovany - Performance Results
NPP Dukovany - Performance Results 25.08.2003 MH Unplanned Capability Loss Factor 8 7 6 5 % 4 3 2 1 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 NPP Dukovany average World average World median This factor expresses share of unplanned losses to achievable production. NPP Dukovan
Slide 29: Public Opinion Research about Nuclear Power Plants
Public Opinion Research about Nuclear Power Plants (%) 2.39 27.08.2003 MH NPP Dukovany NPP Temelín 86 84 79 75 73 69 69 71 71 65 67 59 60 58 58 60 55 55 52 52 52 94 95 1 8 93 4 5 96 6 2003 7 97 98 99 2 1995 1996 1997 1998 2000 00 /0 /9 /9 /9 /9 /9 /0 4/ 3/ 3/ 3/ 3/ 3/ 5/ 4/ 11 11 11 11 11 11 10 Supp
Slide 30: Insurance of the Nuclear Power Plants of ČEZ
Insurance of the Nuclear Power Plants of ČEZ 2.38A 09.04.2003 EN y Property damage insurance - NPP Dukovany since December 1998 - NPP Temelín since July 2000 y Nuclear third party liability insurance (operational) - NPP Dukovany since January 1998 - NPP Temelín since July 2000 y Nuclear third party
Slide 31: Regulation and Prices in Power Industry
10.6A 17.05.2001 ZM The Czech Power Industry Position of ČEZ Nuclear Power Regulation and Prices in Power Industry Ownership Restructuring Operational and Financial Results duhová energie 3
Slide 32: New Energy Policy of the Czech Republic
New Energy Policy of the Czech Republic 04.08.2003 IN Draft submitted by Ministry of Industry and Trade (MIaT) for comments in June 2003 • 30 year horizon • priorities: independence, security, safety, and reliability • goals: • maximum effectiveness of (preferably domestic) resources utilisation • m
Slide 33: Progress in Establishing of Regulatory Framework
Progress in Establishing of Regulatory Framework 8.2A 02.05.2003 MH • Clean Air Act Key legislation • Energy Act (effective since January 1, 2001, issued and implemented amendment expected in 2003) • Atomic Act • Environmental Impact Assessment Act (EIA) • Act on Energy Economy • Act on Renewable So
Slide 34: Current Model of the Electricity Market in the Czech Republic
Current Model of the Electricity Market in the Czech Republic 2.44A 08.04.2003 IN Regulatory Protected Competitive Office Customers environment protected by the law in generation Regulator guarantees equal conditions (regTPA) for all groups of market participants, controls charges for transmission a
Slide 35: Liberalization of Electricity Market in the Czech Republic
Liberalization of Electricity Market in the Czech Republic 8.13 5.8.2003 MH 100 Customers with annual consumption: 90 Households 80 Protected (captive) customers 70 have not right to choose supplier Other consumers 60 (excl. households) % 50 Those with permanent consumption measuring 40 9 - 40 GWh 3
Slide 36: Czech Wholesale Prices´ Development
Czech Wholesale Prices´ Development CZK 970/MWh CZK 948/MWh CZK 905/MWh CZK 845/MWh year 2001 year 2001 year 2002 year 2003 highest average price domestic electricity domestic electricity expectation set by regulator (ERÚ) price of ČEZ price of ČEZ regulated market liberalized market duhová energie
Slide 37: ČEZ’s “Duhová energie“ Product Offer for 2003
ČEZ’s “Duhová energie“ Product Offer for 2003 9.1A 1.9.2003 MH • ČEZ started to sell its set of products for 2003 in the third quarter of 2002. This set is called “Duhová energie“. • This set consists of 11 individual standard products. Each product is identified by color and it represents different
Slide 38: Public Offer of ČEZ‘s “Duhová energie“ for 2003
Public Offer of ČEZ‘s “Duhová energie“ for 2003 9.6A 01.09.2003 MH Winter week - maximum Full year 2003 Capacity MW Capacity MW 108 144 153 117 126 135 162 36 72 81 18 27 45 54 63 90 99 0 9 745 CZK/MWh hours year = 8,760 hours Summer week - minimum residual monthly 5 days block Capacity annual 5 day
Slide 39: Ownership Restructuring
10.7A 17.05.2001 ZM The Czech Power Industry Position of ČEZ Nuclear Power Regulation and Prices in Power Industry Ownership Restructuring Operational and Financial Results duhová energie 3
Slide 40: The Shareholders of ČEZ as of June 11, 2003
The Shareholders of ČEZ as of June 11, 2003 3.2A 25.08.2003 MH National Property Fund Institutional (FNM) 67.61% Investors 18.25% Individuals 4.46% Custodians 9.68% Note: Custodians may manage portfolios of both individuals and institutional investors duhová energie 4
Slide 41: Establishing of New ČEZ Group
Establishing of New ČEZ Group 2.32A 4.8.2003 MH ČEZ Future share of ČEZ 56.93% Shares as on August 1, 2003 Share of FNM 67.6% Share of ČEZ 51.0% SČE Future share of ČEZ 0% ČEZ Share of ČEZ 34.0% VČE PRE STE Future share of ČEZ 91.81% Share of ČEZ 50.07% Future share of ČEZ 97.73% Share of ČEZ 58.3%
Slide 42: Ownership transformation – Procedure of the Transaction
Ownership transformation – Procedure of the Transaction 2.34A 08.04.2003 MH January/December 2001- Privatization tender for all state shares in ČEZ + 6 distributors but no investor selected at the end May 2002 - Government approves reintegration in detail June 11, 2002 - Approval by the Annual Gener
Slide 43: ČEZ Group
ČEZ Group 1.9.2003 MH Subsidiaries of ČEZ, a. s. Affiliated companies 100% CZK 45 m 100% CZK 40 m 34% CZK 10 m 29.8% CZK 558 m I&C Energo, s.r.o. Energetické opravny, a.s. ESE, s.r.o. Škoda Praha, a.s. Maintenance 100% CZK 18 m 51% CZK 4 m Maintenance ČEZ Energoservis, s.r.o. SIGMA ENERGO, s.r.o. 64
Slide 44: Operational and Financial Results
10.8A 17.05.2001 ZM The Czech Power Industry Position of ČEZ Nuclear Power Regulation and Prices in Power Industry Ownership Restructuring Operational and Financial Results duhová energie 4
Slide 45: Basic Data of ČEZ
Basic Data of ČEZ 7.1A 25.08.2003 MH I. – II. Q 1997 1998 1999 2000 2001 2002 2003 Capacity at end of period (MW) 10,999 10,900 10,151 10,146 10,146 11,146 12,153 Electricity sales (GWh) 49,333 48,179 46,570 50,449 50,850 53,174 28,817 Number of employees at end of period 11,157 10,314 9,266 8,795 7
Slide 46: Income Statement in Brief (CZK bn)
Income Statement in Brief (CZK bn) 7.3A 19.08.2003 MH I. - II. Q 2000 2001 2002 2003 Operating Revenues 52.43 56.06 55.58 35.74 Operating Expenses 39.80 41.38 44.32 29.33 Income before interest, taxes 22.01 24.04 22.98 13.93 and depreciation (EBITDA) Operating Income (EBIT) 12.63 14.68 11.25 6.41 Ot
Slide 47: Balance Sheet in Brief (CZK bn)
Balance Sheet in Brief (CZK bn) 7.5A 02.05.2003 MH I. - II. Q 2000 2001 2002 2003 Total Assets 222.26 229.03 231.47 295.71 Net Plant in Service 92.95 87.64 138.98 204.77 Construction Work in Progress 103.59 111.93 56.51 11.17 Shareholders´ Equity 129.44 136.73 143.68 153.44 Long-term Liabilities 70.
Slide 48: Investment Program and Internally Generated Cash Flow by ČEZ
Investment Program (without financial investments) and Internally Generated Cash Flow by ČEZ 6.3AD 28.5.2003 ZM 30 28.8 27.1 Net cash provided by operating activities Other projects 24.1 23.4 25 21.0 22.1 21.5 Transmission system 21.0 21.8 19.5 19.4 21.7 19.0 Waste treatment 20 18.3 19.5 14.7 18.8 P
Slide 49: Development of Long-term Liabilities of ČEZ
Development of Long-term Liabilities of ČEZ 7_24A 19.8.2003 MH EUR USD EUR Methodical change as of January 1, 2002 24% USD 7.24A 9.4.2003 MH 22% 38% – debts recounted to original currency 36% (USD, EUR) CZK CZK 70 40% 40% 60 Bonds, total LT debt, total 50 24.2 21.9 Bonds, net of current CZK bn 40 po
Slide 50: Credit Rating of ČEZ and the Czech Republic
Credit Rating of ČEZ and the Czech Republic *) 3.1A 27.01.2003 Pl A+ A1 A A2 A- A3 BBB+ Baa1 BBB Baa2 BBB- Baa3 BB+ Ba1 1994 1995 1996 1997 1998 1999 2000 2001 2002 Standard & Poor´s Moody´s ČR *) *) LT Foreign Currency Government Bonds' Rating ČR *) ČEZ ČEZ duhová energie 5
Slide 51: ČEZ is a Leading Corporate Name in Emerging Europe
ČEZ is a Leading Corporate Name in Emerging Europe 2.37A 25.8.2003 MH One of the largest publicly traded utilities in CEEC Largest electricity producer in the region One of the leaders in revenues and in profit in the Czech Republic First and one of the largest corporate bond issuers in emerging Eur