Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Q4 2008 Earnings Presentation
16 slides from Duke Energy Corporation (Holding Company)'s earnings presentation, Feb 5, 2009
Slide 1: Fourth Quarter Earnings Review and Business Update
FOURTH QUARTER EARNINGS Jim Rogers REVIEW AND BUSINESS Chairman, President and Chief Executive Officer UPDATE February 5, 2009 David Hauser Group Executive and Chief Financial 1 Officer
Slide 2: Safe Harbor Statement; Reg G Disclosure
SAFE HARBOR STATEMENT Some of the statements in this document concerning future company performance will be forward-looking within the meanings of the securities laws. Actual results may materially differ from those discussed in these forward- looking statements, and you should refer to the addition
Slide 3: 2008 Earnings Summary
2008 EARNINGS SUMMARY 4Q08 4Q07 2008 2007 Reported Diluted EPS $ 0.26 $ 0.19 $1.07 $ 1.18 Adjustments 0.06 - 0.20 0.03 Discontinued Operations - 0.06 (0.01) 0.02 Extraordinary Items (0.05) - (0.05) - Adjusted Diluted EPS $ 0.27 $ 0.25 $ 1.21 $1.23 • The increase in adjusted diluted earnings for the
Slide 4: 2009 Adjusted EBIT Expectations
2009 ADJUSTED EBIT EXPECTATIONS ($ millions) U.S. Franchised Electric & Gas $2,400 Commercial Power 470 Duke Energy International 370 Total Adjusted Segment EBIT $3,240 Other (Net Expense) (250) Total Adjusted Segment EBIT and Other $2,990 2009 EARNINGS PER SHARE EMPLOYEE INCENTIVE: • Target of $1.2
Slide 5: Highlights - U.S. Franchised Electric & Gas
2008 HIGHLIGHTS - U.S. FRANCHISED ELECTRIC & GAS Reported & Adjusted Segment EBIT ($ millions) 4Q08 4Q07 2008 2007 Reported Segment EBIT $ 532 $ 519 $ 2,398 $ 2,305 Adjustments - - - - Adjusted Segment EBIT $ 532 $ 519 $ 2,398 $2,305 FOR THE QUARTER Adjusted segment EBIT increased primarily due to •
Slide 6: Highlights - Commercial Power
2008 HIGHLIGHTS - COMMERCIAL POWER Reported & Adjusted Segment EBIT ($ millions) 4Q08 4Q07 2008 2007 Reported Segment EBIT ($ 9) $ 38 $ 264 $ 278 Adjustments 110 (13) 157 (13) Adjusted Segment EBIT $ 101 $ 25 $ 421 $ 265 FOR THE QUARTER Adjusted segment EBIT increased primarily due to • $35 million
Slide 7: Highlights - DEI
2008 HIGHLIGHTS - DEI Reported & Adjusted Segment EBIT ($ millions) 4Q08 4Q07 2008 2007 Reported Segment EBIT $ 104 $ 105 $ 411 $ 388 Adjustments - - - - Adjusted Segment EBIT $ 104 $ 105 $ 411 $ 388 FOR THE QUARTER Adjusted segment EBIT was relatively flat due to • Favorable results in Latin Americ
Slide 8: Highlights - Other
2008 HIGHLIGHTS – OTHER* Reported & Adjusted Net Expense ($ millions) 4Q08 4Q07 2008 2007 Reported Net Expense $108 $ 95 $ 568 $ 260 Adjustments (10) (12) (258) (63) Adjusted Net Expense $ 98 $ 83 $ 310 $ 197 FOR THE QUARTER Adjusted net expense increased due to • Unfavorable returns on investments
Slide 9: Highlights - Other Items
2008 HIGHLIGHTS – OTHER ITEMS 2008 Expectation ($ millions, unless noted otherwise) (from February 2008) 2008 Actual USFE&G Adjusted EBIT $2,420 $2,398 Commercial Power Adjusted EBIT $385 $421 International Adjusted EBIT $380 $411 Other Adjusted Net Expense (1) Crescent Adjusted EBIT $75 ($16) Other
Slide 10: 2009 Financial Assumptions
2009 FINANCIAL ASSUMPTIONS • U.S. FE&G Key Assumptions • Load growth assumption – relatively flat from 2008 on a weather adjusted basis in both the Carolinas and the Midwest • Commercial Power Key Assumptions • ESP approval by PUCO • Duke Energy International Key Assumptions • Reduction in NMC earni
Slide 11: 2009-2013 Capital Expenditures
2009-2013 CAPITAL EXPENDITURES ($ millions) Committed Capital 2009 2010-2013 Cumulative USFE&G Nuclear fuel $ 150 $ 1,250 $ 1,400 USFE&G Environmental 200 100 300 CP Environmental 50 125 175 Edwardsport IGCC 725 1,075 1,800 CC / CT Additions - Carolinas 200 1,000 1,200 Cliffside 550 650 1,200 Lee Nu
Slide 12: 2009 Cash Flows
2009 CASH FLOWS ($ in Millions) 2009 Estimate Primary Sources: Net Income $ 1,550 Depreciation & Amortization 1,825 Total Sources $ 3,375 Primary Uses: Capital and Investment Expenditures (4,750) Dividends (1,200) Other Sources/(Uses), net 825 Total Uses $ (5,125) Uses in Excess of Sources $ (1,750)
Slide 13: Regulatory Achievements
REGULATORY ACHIEVEMENTS Indiana IGCC cost estimate update and CWIP rider January 2009 Kentucky Storm cost deferral January 2009 Ohio Storm cost deferral January 2009 Ohio ESP case – including Save-a-Watt and Smart Grid December 2008 Buck and Dan River combined cycle CPCNs June 2008 Ohio gas rate cas
Slide 14: Regulatory Calendar
REGULATORY CALENDAR State Activity Docket Number Status IN Save-a-Watt • 43374 • Hearing February – March 2009 IN Smart Grid • 43501 • Hearing April 27-29, 2009 IN IGCC CWIP rider • 43114 • Resolution anticipated 2nd quarter 2009 OH Electric Distribution Rate • 08-709 • Resolution anticipated mid-20
Slide 15: Value Proposition
VALUE PROPOSITION Annual Total Return Profile 15% • Proactive regulatory strategy • Forecast 5% to 7% CAGR in 10% adjusted diluted EPS through 2013 • Annual dividend growth 5% • Strong balance sheet provides flexibility 0% EPS Growth Dividend TSR Yield * * Based on current dividend yield of approxim
Slide 16: Fourth Quarter Earnings Review and Business Update
FOURTH QUARTER EARNINGS REVIEW AND BUSINESS UPDATE 16