Korea Electric Power Corporation · KRX:015760
Korea Electric Power — Investor Presentation (October 2004)
25 slides from Korea Electric Power's investor presentation, Oct 25, 2004
Slide 1: Form 6-K Cover Page
SECURITIES Washington, FORM REPORT Pursuant For KOREA (Translation 167, (Address Form Indicate Securities Yes If 1 “Yes” the Samseong-dong, 20-F 6-K Month by is ELECTRIC to of OF Exchange marked, X check Rule principal No of DC Form FOREIGN AND of registrant’s X20549 13a-16 October, mark indicate 40
Slide 2: Incorporation by Reference Notice
This Report reference 2 in the of Foreign Registration Private Statement Issuer ononForm Form6-K F-3is(Registration deemed filedNo. for 33-99550) all purposesand under the Registration the SecuritiesStatement Act of 1933, on Form as amended, F-3 (Registration and the Securities No. 333-9180). Exchan
Slide 3: Investor Presentation October 2004
Investor October This financial representation 3 material 2004 Presentation instrument has as to been its or accuracy prepared securities.by orWhile completeness. Koreareasonable ElectricAny Power care projections has Corporation been taken or estimates fortothe ensure information may that bethe dif
Slide 4: Table of Contents
Table I. II. III. IV. 4 Overview Business Strategic Financial of Contents &Initiatives Profile Operation
Slide 5: I. Overview
1. Overview B=...
Slide 6: Power Assets and Revenues Overview
Power Assets Revenues Generating For Market * 95% 100% Distribution Transmission Generation 6 Based theMonopoly KRW71.7 year Capitalization Cap.: onKRW22.8 Capacity gross ended as ofgeneration trillion inthe and Korea trillion 50,432 KRW13.9 end as(US$60.2 ofof(US$19.1billion) MW (2003) Dec. Septril
Slide 7: II. Business & Operation
ll. Business & Operation Barro.
Slide 8: Historical GDP and Electricity Sales Demand
Historical GDP (6.7) (3.6) 1998 Sales Demand 7.2% 5.7% 6.5% 10.3% 7.0% 5.9% 10.6% 5.6% Revenue Volume Overall 2005: 2006 GDP: Forecast Actual Unit 9 Residential Won/Kwh Commercial Industrial Average * 8 months 2004Sales 10.7 Growth 1999 ~Volume 214 6.1% an results data 2010: 75.3 Growth value annual
Slide 9: Tariff Adjustment History
Management Increasing Narrowing Proposing History Tariff Nov00 Nov99 Jan98 Jul97 Feb92 Jun91 4.9% 4.2% 6.0% 4.0% 5.3% 6.5% 5.9% Residential Commercial Industrial Average Jan03 9 Adjustment Rebalancing Mar04 of 0.0% 2.5% aTariff tariff tariff -2.0% tariff-hike -2.2% Objectives -1.5% 0.0% to Adjustmen
Slide 10: Surging Fuel Prices and Fuel Expense
Surging 2003 NEWC* Dubai * proved Unit (1,000Won/ton,Won/liter) Bituminous B.C. Fuel (in 1H Coal Oil LNG Nuke Total 10NEWC: billion 04 523 Price Expense Oil 1,222 Average 3,497 405.8 1,542 210 Oil 1H to 801 Fuel 244.3 Coal be 222 03 Won) Newcastle Price &840 Change 2,887 409.2 1,025 53.6 -34.6% not
Slide 11: Factors Cutting Fuel Cost and Generation Mix
Factors Cutting The Korean Fuel Generation 1H 11% 40% 42% 17% 5% Nuclear 39% 30% 25% 44% 15% 35% 6% LNG Oil Coal 2003 to 11 recover be 2004 volatility Price Cost price cutWon that expensive &Mix 40%+, & hike Hydro Mix mitigated was Expense ofhad BC appreciated respectively light not oilfuel (2)been
Slide 12: Fuel Expense Maintaining Strategy
Fuel Expense Maintaining Strategy Gencos Diversifying Securing Exploring Developing 12 tomore overseas collectively share alternative efficient fuel - coal Strategy fuel sources fuel by inventory fuel bargain long-term non-fossil resources to mix: Russia, fuel Nuclear contract: fuel toprices Indones
Slide 13: III. Financial Profile
lll. Financial Profile Barro.
Slide 14: Capital Structure and Shareholders
Capital Interest * Total Shareholder Government KDB Resolution National Treasury Foreigners Others Liab. SH’s As US JPY FX Local 14Debt: of Dollar Debt 34% Equity debt foreign SH’s Liabilities: 47% 26.9% 2003, Currency 6.0% Structure KEPCO Bearing Pension 32% Stock :62% Equity: 30.4% & KRW consolida
Slide 15: Debt Profile and Repayment Schedule
Current Target 2H Debt June USD JPY Others Total KRW Fixed FX Floating is * 15 Debt: to04 debt 11% get 2004 Profile Currency 20% Maturing 68% vs. 62% 50% 89% 2005 Schedule 1% KEPCO vs. smaller 0.8 38% 50% 11% portion Floating 15% Target 15% 70% Target 2006 1.5 & Mix Strategy Debt 0.7 in +2007 Repaym
Slide 16: Improved Financial Status
Improved (in KWh Revenues EBITDA Operating Total Net Based Interest 16 billion Income Interest sold(GWh) onbearing Bearing cost 14.8% consolidated Financial 18.8% Won) Income 0.4% isCost** inclusive debt: yoy Debt*** 8,800 18,708 11.8% 1,483 34.9% Status 2000 4.3% KEPCO+GENCOs*** 4.8% financial 10.2
Slide 17: First Half 2004 Results
First (in Sale Revenues Power Labor Retirement Maintenance Expenses Investment Interest FX Other Ordinary Provision was Despite by Fuel Depreciation Korea Operating Net * information generating 17This KEPCO+Gencos 0.6% billion gain loss income profit decent of 3,497 cost Half operating 1,149 income:
Slide 18: Conservative Capital Expenditure Plan
Capital Conservative (in 7,882 2,038 2,297 3,547 2004F New 1,002 2,507 18 billion Capacity 9,971 2,767 2,813 4,391 1,500 700 2005F Expenditure Won) 950 9,898 2, 2,578 4,467 1,100 Official 2006F to 853 1,650 be1,000MW 9,708 1,885 4,274 3,549 added 2007F 2,800 Forecast 9,432 1,476 4,088 3,869 Thermal
Slide 19: Major Operating and Financial Statistics
Major Operating 18.5% 7.9% Debt 82.3% total Average 8.2% Return Kepco+Gencos 4.4% 2000 * 192000~2003:based borrowing/ to 2001 8.1% 6.3% 4.2% Financial 19.7% 84.1% on Equity Debt Asset & 2002 14.3% 6.1% 5.8% Net 23.6% 65.1% Cost Ratio Statistics SH’s 2003 Profit 5.2% 4.4% 10.2% on 22.9% 59.9% equity
Slide 20: IV. Strategic Initiatives
IV. Strategic Initiatives Bro.
Slide 21: Industry Restructuring Plan
Industry Initial Plan Genco GENERATION 6 Be Management Improving All DISTRIBUTION Disco DIVISIONAL Each New Sale IPO KEPCO Scrapping This 21Gencos prepared gencos has of Current policy cleared system division Setup Plan, Setup KOSEP been will Restructuring inwas Disco the except secures Current oper
Slide 22: Asset Sales Plan
Asset Assets Book (in KOSEP KPS KEPID KDHC KOGAS KOPEC Powercomm * 22Book billion 267 Value Sale on 159 value: 22 1,991 69 740 100.0% Sale Won) 49.0% 97.9% 26.1% Ownership 351 24.5% as 100.0% of 43.1% By Timing After Timing December Subject listing Selling Plan By Government’s &&listing on method to
Slide 23: Overseas Business Strategy
Overseas Why Supplementing Conservative Utilizing Taking Supported Bearing Strategy Establishing Return Diversifying Project 23 domust advantage financing in we the Business by mind go justify fair experience business cash Government abroad? low that reputation with of flow -the profitability -regio
Slide 24: Investor Presentation October 2004
Investor 2004 October Presentation
Slide 25: Signatures
Pursuant SIGNATURES KOREA By: Name: Title: Date 25 /s/ :Head Oct. Lee, ELECTRIC to 22, of the Do-Shik Treasury 2004 requirements POWER Department ofCORPORATION the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto dul
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