Korea Electric Power Corporation · KRX:015760
Korea Electric Power — Non-Deal Roadshow (May 2007)
26 slides from Korea Electric Power's roadshow presentation, May 10, 2007
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 May 2007 KOREA ELECTRIC POWER CORPORATION (Translation of registrant’s name into English) 167, Samseong-dong, Ga
Slide 2: Report deemed filed under Securities Act registration statements
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 meetings from May 10 to May 18, 2007
From May 10, 2007 to May 18, 2007, Korea Electric Power Corporation (“KEPCO”) will have meetings with certain institutional investors in Asia and Europe as part of its investor relations activities to provide such investors with recent information on KEPCO. Attached hereto is the investor presentati
Slide 4: 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/ Moon, Ho Name : Moon, Ho Title : Chief Financial Officer Date: May 9, 2007
Slide 5: Investor Presentation May 2007
Investor May This financial representation KOREA KEPCOmaterial 2007 Presentation ELECTRIC instrument has as to been its orPOWER accuracy prepared securities. CORPORATION by orWhile completeness. Koreareasonable ElectricAny Power care projections has Corporation been taken or estimates fortothe ensur
Slide 6: Table of Contents
Table I. II. III. IV. KOREA KEPCO Appendix 2 Overview Business Industry Financial of Contents ELECTRIC & Restructuring Profile Operations POWER CORPORATION
Slide 7: I. Overview
I. Overview KOREA KEPCO ELECTRIC POWER CORPORATION
Slide 8: KEPCO overview: generation, transmission, distribution
Power * Distribution Transmission Generation 100% 95% Based KEPCO Assets Revenues Market •Credit KOREA AssetsMonopoly Generating Generating Market Moody’s on Rating KRW grossin Capitalization &ELECTRIC Cap.: KRW raised Revenues Capacity Capacity 77.4 generation Korea A1(Moody’s), as27.4 credit of tr
Slide 9: II. Business & Operations
II. Business KOREA KEPCO ELECTRIC & Operations POWER CORPORATION 5
Slide 10: Historical and forecast electricity demand and sales
2008 :7.0 Historical 7.6 3.8 2001 (Unit Sales Volume 0.8% Residential Demand8.0 Volume : 4.5% 1,000 2002 2.0% Revenue Growth Demand 5.4GWh) 3.1Commercial 2009 2003 2.4% 258 6.3 4.7 forGDP Forecast Growth ~1Q 2012 278 6.5 4.0 2004 3.0% 2007 Growth & :5.0 4.9 294 Industrial 32005 (yoy) GDP 4.1% – 4% 5
Slide 11: MOCIE fair rate of return and tariff formula
MOCIE Fair Formula Actual * Tariff Working Cost Rate Adjustment (1) of Rate Equity ofCapital of Return Return isFlow :determined =Cash Cost = Operating Operating of Debt by CAPM Income ×Expense Debt: Weighting Risk (1 - tax Free rate) Rate + Cost ÷ Net + Beta ofPlant Equity × Market in Service * × E
Slide 12: Tariff adjustment history
History 5.3% Nov99 Tariff Residential Average Jan03 * In Rebalancing KEPCO (2) Mar04 2005, Nov00 4.0% of 0.0% •Management KOREA Tariff Rebalancing-2.0% tariffs Reclassifying Narrowing Dec05 -1.5% 01 0.0% ELECTRIC the Adjustment Jun02 -2.8% were Jan07 Strategies tariffs 1.9% -0.1% commercial, gap 03
Slide 13: Fuel prices and fuel expense trends
2004 NEWC* Dubai FX * KEPCO Unit Rate* Average Oil NEWC FXCoal 1,143.7 Price Expense Price &Rate :33.6 2005 trends Newcastle 1,024.1 (1,000Won/ton,Won/liter, Fuel (in 1Q B. KOREA Coal billion 2007 2006 Price Expense 57.8 649 ELECTRIC Fuel 1Q Won) 644 2007 54.4 FX Expense Index -0.8% Rate 49.4 Source
Slide 14: Strategy: sustaining generation mix and fuel cost saving
Strategy •Sustaining Generation 18% Fuel 1Q 51% KOREA KEPCO Maintaining Securing Re-trying 2006 Price Cost LNG on ELECTRIC 1QMix & 16% 50% shares over direct Mix Fuel 2007 Expense optimal 80% Cost of import 5%foreign 17%of POWER Oil Saving (2) proportion Oil nuclear of 7%19% LNG mines CORPORATION 38
Slide 15: III. Financial Profile
III. Financial KOREA KEPCO ELECTRIC Profile POWER CORPORATION
Slide 16: Capital structure and major shareholders
•Capital Major Total Shareholders SH’s Liabilities Structure Equity: KRW :asKRW of 34.2 March 43.2 trillion trillion 31, 2007 (USD (USD36.8 46.5 billion) billion) KDB1) 29.95% 51.07% Government Liab. as Interest Local USDof Dec. 41% 44% Currency Bearing 31, JPY SH’s 21.12% 2006 30% Debt Equity Debt*
Slide 17: Debt profile and repayment schedule
2.7Debt 0.6 4.7 KEPCO 2007 Debt 1Q Fixed Total KRW FX * KOREA Profile Repayment Maturing 2007:4.0 0.1 84% vs. 2.7 0.3 Currency 2008 Fixed Fixed Fixed KEPCO&68% 2.3 Strategy 1.1 Debt ELECTRIC Target Floating 2009 70% 99%62%Schedule Mix 0.9 0.3 2010 0.6 0.8 FX Floating +USD Mix GENCOs,1.6 Debt Floatin
Slide 18: Improved financial status
Improved (Unit: KWh Revenues EBITDA Operating Total Interest Net * ** KOREA KEPCO Based Interest Income(23.8%) Interest sold(GWh) KRW Bearing on ELECTRIC 3.6% Financial 6.6% Income cost consolidated bn) Cost 10,313(3.8%) is 22,775 Debt(3.5%) yoy 5.4% inclusive 3.5% **(13.5%) Status* 2,323 2003 POWER
Slide 19: 1Q 2007 operating results
1Q (Unit Operating Revenues Maintenance Expenses Investment FX •Provision * 2007 loss :cost in KEPCO+GENCOs 67 Primarily Fuel Power Results* billions for for revenues: Maintenance4due Depreciation Operating This income information six KEPCO KOREA 1575.0% 364 other income other generating purchased f
Slide 20: Conservative capital expenditure and capacity additions
Capital Conservative Thermal Transmission (in 7,782 9,803 10,168 9,912 2006A New Nuclear * billion KEPCO KOREA Capacity 2007F Expenditure IPPs 3,035 3,607 Plant 1,553 Plant 3,441 Thermal Won) :Official & 2008F Independenet to1,540 ELECTRIC 2,218 Distribution be 2,572 2,032 2,076(MW) added 2009F Fore
Slide 21: Dividend policy and payout
General •Dividend DPS 800 Payout 30.0% KOREA KEPCO Absolute Cash Long 1,050 20.0% 1,400 flow term Ratio ELECTRIC 1,150 amount has dividend (in 10.0% been Won) 1,150 of positive POWER dividend policy 1,000 16.7% 1,200 issince 28.6% CORPORATION being will 1,000 2002be Y2001 discussed 2003 800 25.1% gr
Slide 22: Major operating and financial statistics
Major Operating 23.6% 14.3% Return 8.8% Total 65.1% Average 6.1% KEPCO KOREA Financial 22.9% 7.4% 5.2% & 59.9% on DebtNet 10.2% KEPCO+GENCOs 2002 * Based 2003 Borrowing 18.6% Equity on 2004 6.3% 4.7% Statistics Profit 12.0% 15.4% Margin 9.5% consolidated 47.5% Cost 2005 ELECTRICto 5.8% 4.4% Equity 4
Slide 23: IV. Industry Restructuring
IV. Industry KOREA KEPCO ELECTRIC Restructuring POWER CORPORATION
Slide 24: Industry restructuring: generation and distribution
Industry Generation Distribution Sale •Scrapping * KOREA KEPCO All This Be Management 9Improving 7Each Further IPO KEPCO DISCO Scrapped DISCOs independent district prepared of GENCOs has policy cleared division KOSEP Restructuring ELECTRIC progress setup been will DISCO head :because Distribution th
Slide 25: Restructuring of subsidiaries and sale plan
(in billion Industry Asset Book Value* Sale Restructuring Korean Ownership Won)(2)Plan of Sale KOSEP1) 2,035 100.0% • Listing on domestic stock exchange or selling management control KPS2) 305 100.0% • Listing on domestic stock exchange KEPID3) 48 49.0% • Timing & method of sale is to be set in cons
Slide 26: Appendix: Company information
Appendix Establishment Company Paid Major Number Fiscal Stock Head Home * KEPCOKEPCOKOREA As in of Office Listing: Year Business Page Capital December ofType Information Employees :::From www.kepco.co.kr 167, KRX :::December :KRW Government Electric 31, January Samseong-dong, (August 2006 3.2 : 33,6