Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Investor Presentation (June 2010)
25 slides from Duke Energy Corporation (Holding Company)'s investor presentation, Jun 28, 2010
Slide 1: Duke Energy International
Duke Energy International June 28, 2010 Keith Trent Group Executive and President, Commercial Businesses Andrea Bertone President, Duke Energy International
Slide 2: Safe Harbor Statement
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: Business Mix Overview
DUKE ENERGY Business Mix Overview Business Mix by EBIT Contribution* 9% 14% Commercial Power International U.S. Franchised 77% Electric & Gas Regulated Businesses Commercial Businesses U.S. Franchised Electric & Gas Commercial Power International • ~27,000 MW of regulated generation • ~7,600 MW of u
Slide 4: Duke Energy International (DEI or International) Overview
DUKE ENERGY INTERNATIONAL (DEI or International) Overview ►Asset Portfolio 2010E DEI Adjusted EBIT Contribution – By Country • Capital investment of approximately US$3 billion at December 31, 2009 • About 70% of owned generation 57% capacity is hydro • Fourth largest investor-owned 93% generator in
Slide 5: Brazil Portfolio Overview
DUKE ENERGY INTERNATIONAL Brazil Portfolio Overview Gov’t sets ►“Contractible capacity” minimizes hydrology risk allowed ►Historically, approximately 95-100% of contractible capacity has been contracted contractible ►Contracts are escalated for inflation with 5-year average tenor capacity at ► Sales
Slide 6: Peru Portfolio Overview
DUKE ENERGY INTERNATIONAL Peru Portfolio Overview ►Between 90-100% of our generation capacity receives capacity payment ►Current optimal contracting level is approximately 65% of owned capacity ►Las Flores facility (197MW) is not yet available for contracting Optimal ►Peaking facilities are not cont
Slide 7: National Methanol Company (NMC)
DUKE ENERGY INTERNATIONAL National Methanol Company (NMC) ►Equity investment in regional producer of Methanol and MTBE located in Saudi Arabia • JV agreement signed in 1981 - Saudi Basic Industries Corporation (SABIC) - 50%, Celanese - 25%, and Duke Energy - 25% • Duke Energy’s interest was obtained
Slide 8: NMC Joint Venture Extension
DUKE ENERGY INTERNATIONAL NMC Joint Venture Extension ►JV term extended until 2032, effective April 1, 2010 • Extends earnings stream of JV for additional 20 years ►Key Points of the JV Extension • NMC will construct an estimated US$400 - 500 million, 50,000 ton facility in Saudi Arabia to produce p
Slide 9: Financial Metrics
DUKE ENERGY INTERNATIONAL Financial Metrics ►Earnings DEI Adjusted Segment EBIT • Historical DEI adjusted segment EBIT CAGR of (US$ in millions) $485 approximately 9 percent (2006-2009) $313 $388 $411 $409 • Expect continued growth into 2010 • DEI adjusted segment EBIT expectations for 2010 of $485
Slide 10: Strategic Focus
DUKE ENERGY INTERNATIONAL Strategic Focus ►Maintain operational performance and strong cash flow generation ►Redeploy cash flows in growth Generation Projects Recently Completed opportunities and optimize the portfolio • Peru (Las Flores) • 197 MW simple-cycle natural gas plant • Invest in markets w
Slide 11: Appendix
APPENDIX 11 Duke Energy International Webcast – June 2010
Slide 12: Duke Energy International Overview by Country
DUKE ENERGY INTERNATIONAL Overview % of DEI Adjusted 2009 Sales Segment EBIT2 Revenues Installed % Total DEI % Contracted in Under Fuel / Product (in US$ Country Capacity Capacity 2010 Construction GWh 2009 2010E millions) Brazil Hydro 2,113 MW 50% 99% 33 MW 11,904 $ 448 55% 57% Hydro 374 MW Peru Na
Slide 13: Consolidated Market Overview
DUKE ENERGY INTERNATIONAL Consolidated Market Overview Argentina Brazil Ecuador El Salvador Peru Guatemala Plants in Operation (owned capacity) 523 MW 2,113 MW 162 MW 296 MW 825 MW 283 MW Thermal 88 MW ----- 162 MW 296 MW 451 MW 283 MW Hydro 435 MW 2,113 MW ----- ----- 374 MW ----- Contractible Capa
Slide 14: Duke Energy International Debt
DUKE ENERGY INTERNATIONAL DEBT As of March 31, 2010 Reporting Base Maturity Entity Node Description Currency Currency Balance USD Balance Rate Type Date Aquaytia Secured USD 28,303,114 28,303,114 6.183% Fixed 11/30/11 Aquaytia Capital Lease USD 1,046,610 1,046,610 7.810% Fixed 02/01/16 Aquaytia Capi
Slide 15: Brazil - Background
DUKE ENERGY INTERNATIONAL Brazil - Background ►Overview • Companhia de Geracao Energia Paranapanema ("Paranapanema") • Eight hydroelectric plants with over 2,000 MW installed capacity • On the Paranapanema river in southwestern Sao Paulo State BRAZIL ►Background • Sao Paulo Energy Company ("CESP") f
Slide 16: Brazil – Risk Overview
DUKE ENERGY INTERNATIONAL Brazil – Risk Overview Overview of Risks & Mitigants Political stability No significant changes expected in the economic policy as a result of the 2010 presidential elections Weather (hydrological Sharing mechanism to spread hydro risk among hydro generators in differen
Slide 17: Peru (Egenor) - Background
DUKE ENERGY INTERNATIONAL Peru (Egenor) - Background ECUADOR •162 MW (diesel) ECUADOR ►Overview PERU • Egenor's generating assets include two hydro and six small PERU - Egenor •451 MW (hydro & diesel) thermal plants located in northwestern Peru. •197 MW (gas) • The hydro plants are run-of-river with
Slide 18: Peru (Aguaytia) - Background
DUKE ENERGY INTERNATIONAL Peru (Aguaytia) - Background ECUADOR ECUADOR ►Overview •162 MW (diesel) PERU • The Aguaytia Integrated Energy Project (Aguaytia), located in the Amazon PERU - Egenor basin of Peru •451 MW (hydro & diesel) • Produces, processes and transports natural gas, sells liquefied pet
Slide 19: Peru – Risk Overview
DUKE ENERGY INTERNATIONAL Peru – Risk Overview Risk Overview & Mitigants Political stability Stable political environment with support for free markets. Strong support for international trade and investment. Elections in early 2011, with two leading candidates expected to follow current policies
Slide 20: National Methanol – Risk Overview
DUKE ENERGY INTERNATIONAL National Methanol – Risk Overview Risk Overview & Mitigants Commodity An approximate $10/barrel change in the average annual price of WTI crude oil has roughly a US$0.01 EPS impact (annually) This impact is partially offset by DEI’s thermal operations in Latin America
Slide 21: Spot Prices – Brazil and Peru
DUKE ENERGY INTERNATIONAL Spot Prices – Brazil and Peru Brazil Spot Prices http://www.ccee.org.br/cceeinterdsm/v/index.jsp?vgnextoid=29d9a5c1de88a010VgnVCM100000aa01a8c0RCRD Peru Spot Prices http://www.coes.org.pe/coes/informes/transf/2010.asp 21 Duke Energy International Webcast – June 2010
Slide 22: Historical F/X Rates – Brazil and Peru
DUKE ENERGY INTERNATIONAL Historical F/X Rates – Brazil and Peru Real/US Dollar Brazilian Real - Quarterly Average 2004 2005 2006 2007 2008 2009 Q1 2.90 2.67 2.19 2.11 1.74 2.32 Q2 3.05 2.48 2.18 1.98 1.66 2.08 Q3 2.98 2.34 2.17 1.92 1.67 1.87 Q4 2.79 2.25 2.15 1.79 2.28 1.74 Sol/US Dollar Peruvian
Slide 23: Duke Energy International Webcast – June 2010
Duke Energy International Webcast – June 2010 23
Slide 24: Non-GAAP Reconciliations International Energy
Duke Energy Corporation Non-GAAP Reconciliations International Energy June 2010 International Energy’s Adjusted Segment EBIT for 2009, 2008, 2007, and 2006 and Forecasted Adjusted Segment EBIT for 2010 for All Segments The materials for Duke Energy Corporation’s (“Duke Energy”) June 2010 Internation
Slide 25: Reported to Adjusted EBIT Reconciliation
Duke Energy International Reported to Adjusted EBIT Reconciliation (Dollars in Millions) Years ended Dec. 31, 2009 2008 2007 2006 Reported Segment EBIT $ 365 $ 411 $ 388 $ 163 Special Items: Other Impairment (a) 18 - - - International Transmission Adjustment (b) 26 - - - Settlement Reserves (c) - -