Exelon Corporation · NASDAQ:EXC
Exelon — Wachovia Securities Fourteenth Annual Nantucket Equity Conference 2004
21 slides from Exelon's conference presentation, Jun 24, 2004
Slide 1: Gaining Momentum
Gaining Momentum Exelon Corporation Robert S. Shapard Executive Vice President and CFO Wachovia Securities Fourteenth Annual Nantucket Equity Conference June 24, 2004
Slide 2: Forward-Looking Statements
This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by a regist
Slide 3: Industry in Transition
Industry in Transition Regulatory restructuring Capacity overbuild Volatile wholesale prices Standard Market initiatives
Slide 4: We Are Exelon
We Are Exelon * Operating capacity at 12/31/03; excludes Sithe and New England assets. Sources: Company reports, Thomson Financial, Bloomberg Note: Data based on results reported through 6/14/04.
Slide 5: Our Assets - Regional Markets
Our Assets - Regional Markets Note: As of 12/31/03; owned generation excludes Sithe and New England assets. Midwest Owned Generation: Contracted Gen: Total Generation: ComEd Control Area Peak Load: 11,427 MW 9,578 MW 21,005 MW 22,100 MW ERCOT/South Owned Generation: Contracted Gen: Total Generation:
Slide 6: World-Class Performance
World-Class Performance Nuclear operations dramatically improved Average annual capacity factor increased from 47% in 1997 to 93%+ in 2003 Production cost decreased from $26.80/MWh in 1997 to $12.53/MWh in 2003 - top quartile Fossil/hydro fleet improving efficiency Added more than 300 MWs of capacit
Slide 7: Well Positioned to Grow
Well Positioned to Grow Divesting underperforming assets Driving strong earnings and cash flow growth through The Exelon Way Recovery of wholesale markets Expansion of wholesale markets
Slide 8: Disciplined Financial Management
Disciplined Financial Management 10.6% average annual growth in adjusted (non-GAAP) operating EPS* 9.2% average annual growth in dividends Retired $1.9 billion of transition debt and refinanced/retired $5.0 billion of other debt Reduced interest expense by $219 million Since 2000: * See presentation
Slide 9: 2004 Adjusted Operating EPS Guidance Drivers
2003 Weather/Sales Ent. Losses CTC Depr./Nuc Outages )&M Expenses Pension/OPEB Genco RNF AmerGen Interest Exelon Way 2004 Invisible dataset 2.61 2.695 2.68 2.59 2.53 2.49 2.49 2.575 2.625 2.68 Green 2.61 0.085 0.145 0.16 0.09 0.06 0.04 0.085 0.05 0.055 0.15 2.83 2003 2004E Interest O&M Expenses ComE
Slide 10: Exelon Way Targets
Exelon Way Targets ($ millions) 2004 Annual Impact O&M* CapEx Total GenCo $ 80 $ 65 $ 145 $ 115 $ 125 $ 240 EED** 130 135 265 215 295 510 Total $ 210 $ 200 $ 410 $ 330 $ 420 $ 750 Cash Flow Summary 2004 Impacts GenCo $ 50 $ 65 $ 115 $ 71 $ 125 $ 196 EED 81 135 216 133 295 428 Total $ 131 $ 200 $ 331
Slide 11: Sources of Free Cash 2004-2006
Sources of Free Cash 2004-2006 (in millions) 2004-2006E The Exelon Way Commitment $1,000+ Resolution of Boston Generating and Sithe 400 Sale of Exelon Enterprises Businesses 200 Synthetic Fuels Investment 120 Total $1,720+ After using other sources of cash to cover pension contributions, cap ex, nuc
Slide 12: Exelon 2004 Financial Scorecard
Exelon 2004 Financial Scorecard * Excludes transition debt and Boston Generating Facility debt Note: See presentation appendix for O&M and Cap Ex savings, EPS and Free Cash Flow reconciliations to GAAP. ($ in millions, except per share data) Measure To-date (through 1Q) 2004 Target/Estimate Status E
Slide 13: ComEd 2007 Transition
Exelon. ComEd 2007 Transition
Slide 14: ComEd Bundled Tariff for Mass Market
ComEd Bundled Tariff for Mass Market 2003 Actual* 2007 Estimate RES SCI LCI LCI (< 3 MW) Non-Wires Rate 49 43 49.9 49.9 48.9 28 Line Losses 3 3 Wires Rate 25 31 35.1 15.1 10.1 3 77 77 Assumes 25% increase in wires charges to recover increased investment in transmission and distribution infrastructur
Slide 15: Projected Rising Wholesale Power Prices
2002 2003 2004E 2005E 2006E 2007E 2008E 2009E 2010E 21.35 27.86 33.09 32.6 34.92 38.27 36.78 37.07 39.33 20.28 21.49 22.73 24.4 26.2 27.36 28.7 31.56 27.86 30.85 30.91 * Does not include capacity, ancillary services, load following, weather risk or other costs that will add approximately 50% to ATC
Slide 16: Positioned to Maximize Value
Positioned to Maximize Value Large, low-cost generation portfolio Nuclear dominated fleet Lowest cost generator in Illinois and Pennsylvania Positioned well for a competitive market Large, stable retail customer base Exelon Way Initiatives Cost reduction initiatives Revenue initiatives Focused finan
Slide 17: 2004 Earnings Guidance
Appendix 2004 Earnings Guidance* Exelon's adjusted (non-GAAP) operating earnings for 2004 are expected to be in the range of $2.68 to $2.83 per share. Our outlook for adjusted (non-GAAP) operating earnings excludes income resulting from investments in synthetic fuel producing facilities, the cumulat
Slide 18: Free Cash Flow
Free Cash Flow We define free cash flow as: Cash from operations (which includes pension contributions and the benefit of synthetic fuels investment), less Capital expenditures Nuclear decommissioning trust fund investment activity Transition debt maturities Common stock dividends Other routine inve
Slide 19: First Quarter 2004 Reconciliation
First Quarter 2004 Reconciliation Appendix Appendix – 1Q Year-over-Year Exelon Way Savings
Slide 20: Program-To-Date Exelon Way Savings
Appendix - Program-To-Date Exelon Way Savings
Slide 21: Enterprises - Path to Exit 2004 Update
Enterprises - Path to Exit 2004 Update * Exploring possible sale of Limited Partnerships in Q2 or Q3 subject to management approval ** Assets held for sale and investments under contract to be sold *** Assets held for disposal E = Estimated date Appendix
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