Korea Electric Power Corporation · KRX:015760
Korea Electric Power — Investor Presentation (September 2006)
22 slides from Korea Electric Power's investor presentation, Sep 22, 2006
Slide 1: Form 6-K Cover
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 September, 2006 KOREA ELECTRIC POWER CORPORATION (Translation of registrant’s name into English) 167, Samseong-d
Slide 2: 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. By: /s/ Kim, Myung-Whan Name : Kim, Myung-Whan Title : General Manager International Finance Department
Slide 3: Investor Presentation September 2006
Investor September This financial representation Certain Forward-looking “continue” forward-looking KOREA KEPCO circumstances. material statements Presentation ELECTRIC instrument 2006 or has the as statements. to statements negative been inits orPOWER this accuracy prepared securities. presentation
Slide 4: Table of Contents
Table I. II. III. IV. KOREA KEPCO Overview Business Industry Financial of Contents ELECTRIC & Restructuring Profile Operations POWER CORPORATION 2
Slide 5: I. Overview
I. Overview KOREA KEPCO ELECTRIC POWER CORPORATION
Slide 6: KEPCO Overview
Power 95% Transmission * Revenues Credit Assets Generating Market KOREA KEPCO BasedRating Monopoly & 100% Capitalization Cap.: on ELECTRIC KRW Revenues Capacity gross KRW as74.7 Generation of 100% A1(Moody’s), generation in25.4 Jun. :Korea trillion :as POWER as57,204 30, of trillion of KRW December
Slide 7: II. Business & Operations
II. Business KOREA KEPCO ELECTRIC & Operations POWER CORPORATION
Slide 8: Demand and Sales Volume
Historical GDP 8.5 2007 6.5 Forecast Actual 2006 Sales 332 Demand Unit Volume 1H 85.1 Commercial Industrial Overall KOREA KEPCO 2006 Sales Growth :Volume 7.6 5.4 312 4.3% results 87.5 2005 value Growth ELECTRIC Demand Commercial Revenue Price 1H 8.0 5.9 71.0 294 11.8 may Residential for 2008 5.2% 20
Slide 9: Cost Formula and Fair Return
Cost Formula Fair Net Operating Actual * Tariff (Korean Discussion Application Notice Put 1 KOREA KEPCO This 2Cost 3into Plant Rate of 4Adjustment (1) formula of Rate &Debt Effect Electricity ELECTRIC Equity of Operation in Income of Return Service ×Authorization KEPCO Return Debt forms isFlow (1 de
Slide 10: Tariff History
Tariff History Tariff 6.0% 4.2% Average * (2) Residential 2.8%* Commercial 2.4% Industrial Mar04 1.9% Management Rebalancing in Reclassifying Narrowing KOREA KEPCO Tariffs a timely Rebalancing of 6.1% 4.0% 1.9% were ELECTRIC 1.9% Nov99 Tariff manner the tariffs Strategies commercial, increased gap 5
Slide 11: Fuel Price Trends
1/4 Average NEWC* 47.3 USD/ton USD/barrel Dubai 52.7 1,191.8 KRW/USD * 1H Unit (1,000Won/ton,Won/liter, Fuel yoy B. B.C. LNG FX KOREA KEPCO NEWC FX Coal 2006 Rate* Rate Price Expense Oil Rate 2006 Oil yoy 39.1 55.5 -3.4% ELECTRIC Coal Fuel :Price 1,036.6 -8.1% & Source Newcastle 2/4 51.7 26.6% B.C.
Slide 12: Fuel Cost Saving Strategy and Generation Mix
Strategy Maintaining Sustaining Securing Re-trying Fuel Generation 1H LNG Oil Coal Nuclear KOREA KEPCO 2006 Price Cost 38% 38% 41% Oil & on ELECTRIC shares direct Mix & Hydro over Mix 1H Fuel optimal Expense 14% 6% 2006 17% 43% 80% of import Cost foreign 8% 37% proportion of POWER 35% Saving (2) 11%
Slide 13: III. Financial Profile
III. Financial KOREA KEPCO ELECTRIC Profile POWER CORPORATION
Slide 14: Capital Structure and Shareholders
Capital Shareholder 29.95% KDB Consolidated FX US :Total Others * KOREA KEPCO KRW Debt Debt Dollar SH’s Liabilities Debt Foreign Government :3.2 Structure KEPCO ELECTRIC 54.02% 16% 24.07% :Equity trillion 16% KRW Mix 50% Currency Interest : as +KRW :equivalent 19.4 Treasury GENCOs, KRW of SH’s 0.73%
Slide 15: Debt Profile and Repayment Schedule
Total Target Trillion 2014 Debt 1H Fixed KRW FX JPY * 15% KOREA KEPCO Debt 2006 &Currency Profile Repayment &Maturing vs. 57% 8% Schedule Others : Won after KEPCO KRW ELECTRIC Target Floating &Floating Mix Strategy Debt 2013 0.9 Schedule + 70% Fixed Mix 3.2 GENCOs, POWER 0.4 43% FX 2012 62% 15% 2.0D
Slide 16: Improved Financial Status
Improved 2005 (Unit: 278,451 KWh 312,096 22,775 EBITDA Operating Total Interest Net * ** *** KOREA KEPCO Based Operating Income Interest Interest sold(GWh) KRW Bearing 2004 on ELECTRIC ** 6.6% Financial Income 8.0% 23,956 consolidated cost bn) Income Cost 2,408 9,916 2002 Debt isRevenues *** 6.3% in
Slide 17: 1H 2006 Results
Primarily Fuel Maintenance 1H Operating Power Commission Expenses Other Investment Ordinary Provision Net * information generating KOREA KEPCO This KEPCO+GENCOs 2006 income cost operating income: expenses: financial purchased ELECTRIC Results* 1H income was for due income revenues: expenses: subsidi
Slide 18: Capital Expenditure Forecast
Capital Expenditure Conservative Transmission 2,032 Nuclear Thermal KOREA KEPCO Plant 2,911 Plant ELECTRIC New 1,500 Official & Capacity Distribution 1,540 2,218POWER Forecast to 4,695 be Facility CORPORATION (in added billion 4,7652,801 Won) 3,7221,622 9,912 164,5502,240 10,168 2007F 9,803 2006F 8,
Slide 19: Major Operating and Financial Statistics
Major Operating Total 23.6% 12.0% Average 6.3% 2004 * KOREA KEPCO Based Borrowing Financial 2003 6.1% on Debt ELECTRIC 84.1% 65.1% &consolidated Net Cost 2002 Statistics 9.6X to Profit 22.9% 10.2% EBITDA Equity POWER Margin 2001 7.7X financial *Ratio 18.7% 9.5% Interest CORPORATION 2005 7.7X stateme
Slide 20: IV. Industry Restructuring
IV. Industry KOREA KEPCO ELECTRIC Restructuring POWER CORPORATION
Slide 21: Industry Restructuring Status
Industry Initial Current 6 Be Management Improving All DISCO Divisional Each IPO Sale Scrapped This KOREA KEPCO GENCOs prepared GENCOs has of policy cleared division Plan, KOSEP setup Status been will Restructuring ELECTRIC because System the secures in Current to the push control delayed except was
Slide 22: Asset Sale Plan
Asset Book Selling KOSEP KEPID Powercomm Timing Subject After into Listing the * KOREA KEPCO Book bonds the Government’s Value* Sale management on & value: 25 to market 1,986 ELECTRIC convertible method Government’s either 49.0% 408 Assets Ownership as 100.0% for domestic of 43.1% of designing Dec.
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