Exelon Corporation · NASDAQ:EXC
Exelon — Edison Electric Institute Annual Finance Committee Meeting 2004
23 slides from Exelon's conference presentation, May 20, 2004
Slide 1: Gaining Momentum
Gaining Momentum Edison Electric Institute Annual Finance Committee Meeting New York May 20-21, 2004 Exelon Corporation
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: We Are Exelon
We Are Exelon * Operating capacity at 12/31/03; excludes Sithe and New England assets. Sources: Company reports, Thomson Financial Note: Data based on results reported through 4/30/04.
Slide 4: 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 5: Well Positioned to Take Advantage of Wholesale Competition
Well Positioned to: Take advantage of wholesale competition - - Low-cost generation portfolio well suited to competitive market - - ComEd integration into PJM May 1st Meet the needs of retail customers - - Actively engaged in public debate in Illinois and Pennsylvania - - The paradigm has become the
Slide 6: And Well Positioned to Grow
And 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 7: 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 $219 million Since 2000: * See presentation
Slide 8: 2004 Adjusted Operating EPS Guidance Drivers
2003 Weather/Sales Ent. Losses CTC Depr./Nuc Outages )&M Expenses Pension/OPEB Genco RNF AmerGen Interest Exelon Way 2004 Invisible dataset 2.61 2.695 2.68 2.59 2.53 2.49 2.49 2.575 2.625 2.68 Green 2.61 0.085 0.145 0.16 0.09 0.06 0.04 0.085 0.05 0.055 0.15 2.83 2003 2004E Interest O&M Expenses ComE
Slide 9: Exelon Way Targets
Exelon Way Targets ($ 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 10: 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 11: Revaluation of Enterprises' Assets
Exelwn. Revaluation of Enterprises’ Assets Cash (Sniilions) Generated from Sales $2,000 $1670) $2,000 Revalue $1,600 Assets (400) Booked vec Losses si 620) 10 20.4 | zo toe soo $410 $120) $210) $0 = a “ECP investments Tracassete 80 se | settle | LS * ludes Unicom’ oriinalinvesment made porto the Mer
Slide 12: Exelon 2004 Financial Scorecard
Exelon 2004 Financial Scorecard * Excludes transition debt and Boston Generating Facility debt Note: See presentation appendix for O&M and Cap Ex savings, EPS and Free Cash Flow reconciliations to GAAP. ($ 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: MAIN Region: Projected Peak Demand vs. Capacity
2004E 2005E 2006E 2007E 2008E 2009E 2010E (Peak Demand - Interruptibles) + 16% 64069 65518 67068 68761 70233 71791 73190 Capacity 68208 69103 69610 69602 70341 71868 73223 MAIN Region: Projected Peak Demand vs. Capacity Source: Platts
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: 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 17: Illinois Commerce Commission Process
Illinois Commerce Commission Process ICC is sponsoring a workshop process on Post 2006 issues Commissioner Erin O'Connell-Diaz has been selected to chair the workshop committee; Commissioner Kevin Wright will serve on the Steering Committee Workshops began April 29 with kick-off symposium and will e
Slide 18: 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 19: 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 20: 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 21: First Quarter 2004 Reconciliation
First Quarter 2004 Reconciliation Appendix Appendix – 1Q Year-over-Year Exelon Way Savings
Slide 22: Program-To-Date Exelon Way Savings
Appendix - Program-To-Date Exelon Way Savings
Slide 23: 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
Exelon — Edison Electric Institute Annual Finance Committee Meeting 2004 on 6ix