Cez As · PSECZ:CEZ

Cez As — ČEZ, a. s. — Investor Presentation (February 2005)

52 slides from Cez As's investor presentation, February 2005

  1. Slide 1: ČEZ Group Presentation

    ČEZ GROUP PRESENTATION February 2005 Published by Controlling department, ČEZ, a. s. Closing date: 31 January 2005

  2. Slide 2: Table of Contents

    Table of Contents Operational and Financial Results 4 Share Price Performance 5 ČEZ Group - Selected Key Performance Indicators 6 Balance Sheet in Brief 7 Income Statement in Brief 8 ČEZ Group Basics as of September 30, 2004 9 Balance of Electricity in the Czech Republic 10 Basic Data of ČEZ Group 1

  3. Slide 3: Table of Contents - Continuation

    Table of Contents - Continuation The Czech Power Industry 32 GDP and Electricity Consumption in the Czech Republic 33 Power in the Czech Republic in Brief 34 Current Model of the Electricity Market in the Czech Republic 35 Future Prospects of the Czech Energy 36 Liberalization of Czech Electricity M

  4. Slide 4: Agenda

    Agenda ƒ Operational and Financial Results ƒ ČEZ Group Introduction ƒ Strategy goals ƒ The Czech Power Industry ƒ Nuclear Power ƒ Position of ČEZ Group 10.3A 15.09.20 ČEZ GROUP 4 4

  5. Slide 5: Share Price Performance

    Share Price Performance The Shareholders of ČEZ, a. s. as of December 31, 2004 National Property Fund Institutional (FNM ČR) Investors 67.61% 24.45% 360 Custodians 3.23% 340 Individuals ƒ Share price of ČEZ 320 4.71% increased almost by 132% in 300 2004 280 ƒ Integrated ČEZ Group is 260 able to offe

  6. Slide 6: ČEZ Group – Selected Key Performance Indicators

    ČEZ Group – Selected Key Performance Indicators Market capitalization (ČEZ‘s shares) Added value Index 1,00 0,76 Index 1.00 180 0.76 0.91 0,91 1.44 1,44 2.572,57 3.37 Index 1,00 35 1.00 1,08 1.08 1,04 1.04 1,29 1.29 1.06 (exp. 2004: 1.26) 200 160 30 140 150 25 CZK bn 120 CZK bn 100 20 100 80 15 60 1

  7. Slide 7: Balance Sheet in Brief

    Balance Sheet in Brief 300 300 300 bn CZK 300 250 23 27 250 52 65 250 250 25 10 11 42 29 35 10 8 200 25 12 18 16 200 200 14 200 71 Other 59 Other Other 57 Other 64 60 71 Current Liabilities bn. CZK 150 Construction Work in Progress Current Liabilities 150 104 Construction Work in Progress 150 150 11

  8. Slide 8: Income Statement in Brief

    Income Statement in Brief 35 EBITDA 12 Net income 30 10 25 8 20 bn CZK bn CZK 6 15 4 10 5 2 0 0 2000 2001 2002 2003 09/2004 2000 2001 2002 2003 09/2004 bn CZK 2000 2001 2002 2003 09/2004 Revenues 52.4 56.1 55.6 84.8 73.1 2002 and 2003 Operating Expenses 39.7 41.4 44.3 77.3 57.9 - electricity market

  9. Slide 9: ČEZ Group Basics as of September 30, 2004

    ČEZ Group Basics as of September 30, 2004 Installed capacity Gross Electricity Production in the Czech Republic 17,351 MW (+0.1% y/y) in the Czech Republic 61,804 GWh (+2.0% y/y) Other Other suppliers suppliers 29% 26% 71% 74% ČEZ, a. s. ČEZ, a. s. 70% Others of Others of 73% ČEZ Group ČEZ Group 1%

  10. Slide 10: Balance of Electricity in the Czech Republic

    Balance of Electricity in the Czech Republic 90,000 Balance of import and export of the others 4,204 70,000 996 1,598 17 16,590 50,000 12,437 Gross production of the others 22,624 22,293 GWh 30,000 46,445 48,008 50,842 10,000 Gross production of ČEZ, a. s. 60,934 -10,000 -2,121 -2,184 -18,727 -11,61

  11. Slide 11: Basic Data of ČEZ Group

    Basic Data of ČEZ Group 2000 2001 2002 2003 09/2004 Installed capacity at end of period (MW) 10,146 10,146 11,146 12,297 * 12,297 * Electricity sales (GWh) 50,449 50,850 53,174 69,005 48,431 Number of employees at end of period 9,278 8,011 7,677 18,100 17,998 Electricity sales (GWh) Number of employ

  12. Slide 12: Investment Program (without financial investments)

    Investment Program (without financial investments) ČEZ GROUP 12 1

  13. Slide 13: Long-term Liabilities of ČEZ Group

    Long-term Liabilities of ČEZ Group USD EUR 24%* 47%* CZK bn CZK 29%* 80 Long-term indebtedness 70.9 Bonds, total 70 Index 1,00 0,84 1.00 60.9 0.84 0,68 0.68 0,50 0.50 0,67 0.67 LT loans, total 30 60 28.7 Bonds, net of current 44.4 portion 50 24.2 43.1 20 Other LT debt, net of 40 8.4 10.6 current por

  14. Slide 14: Agenda

    Agenda ƒ Operational and Financial Results ƒ ČEZ Group Introduction ƒ Strategy goals ƒ The Czech Power Industry ƒ Nuclear Power ƒ Position of ČEZ Group 10.3A 15.09.20 ČEZ GROUP 14 1

  15. Slide 15: Vision of the ČEZ Group

    Vision of the ČEZ Group To become the leader in the power markets of Central and Southeastern Europe. 2.1A 02.05.20 ČEZ GROUP 15 1

  16. Slide 16: ČEZ Group is a Leading Corporate Name in Emerging Europe

    ČEZ Group is a Leading Corporate Name in Emerging Europe ƒ Successful player in the competitive European market. ƒ Dominant power producer and supplier in the Czech Republic. ƒ Successful operator of two nuclear power plants. ƒ One of the largest publicly traded utilities in Central and East Europea

  17. Slide 17: ČEZ Group in Highlights

    ČEZ Group in Highlights 1990 Separation of regional distribution companies, heat and other activities. 1992 ČEZ established as Joint-Stock Company. 1993 ČEZ, a. s. partially privatized (27%). Regional distribution companies established as joint-stock companies. 1995 Partial privatization of regional

  18. Slide 18: ČEZ, a. s. and Group Organization Chart

    ČEZ, a. s. and Group Organization Chart ČEZ TRADE ČEZ HEADQUARTERS ČEZ PRODUCTION EXECUTIVE COMMITTEE (EXCO) BOARD OF DIRECTORS CEO CSO CFO CEO Division COO CPO Sales Division Finance Division MARTIN ROMAN Administration Division Production Division ALAN SVOBODA PETR VOBOŘIL RADOMÍR LAŠÁK JIŘÍ BOROV

  19. Slide 19: ČEZ Group

    ČEZ Group Subsidiaries of ČEZ, a. s. Affiliated companies of ČEZ, a. s. 97.72% CZK 3.210 bn 51.00% CZK 3.258 bn Středočeská energetická a.s. Severočeská energetika, a.s. Electricity Distribution 98.83% CZK 2.55 bn 99.13% CZK 1.606 bn Východočeská energetika, a.s. Západočeská energetika, a.s. 59.09%

  20. Slide 20: Domestic Base as a Pre-requisite for Expansion

    Domestic Base as a Pre-requisite for Expansion ČEZ Group’s Power Plants Installed capacity 12,297 MW 2 NUCLEAR 16 COAL-FIRED 1,934 MW 30 HYDRO 2 WIND 16% 4 PUMPED STORAGE 1 SOLAR 3,760 MW 30% SPÁLOV LEDVICE II, III ÚSTÍ n / Lab. - STŘEKOV POŘÍČÍ II LES KRÁLOVSTVÍ NOVÝ HRÁDEK 54% TUŠIMICE II MĚLNÍK I

  21. Slide 21: ČEZ's Coal-fired Power Plants Emissions

    ČEZ‘s Coal-fired Power Plants Emissions Emissions of CO, Fly-ash, NOx , SO2 and CO2 40 800 37.0 37.3 35.1 35.6 m tons CO2 35 700 32.6 30 600 500 25 kt kt 400 20 1999 2000 2001 2002 2003 300 200 Index 2003 / 1993 100 SO2 NOx CO 22% Fly-ash 0 CO Fly-ash 5% 1993 1994 1995 1996 1997 1998 1999 2000 2001

  22. Slide 22: ČEZ Group's Employees

    ČEZ Group‘s Employees 20,000 18,100 13,723 15,000 12,143 11,664 11,280 11,157 10,314 11,320 9,749 9,278 483 8,011 7,677 10,000 483 459 427 9,266 8,795 7,552 5,000 7,250 6,780 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 ƒ ČEZ, a. s. ƒ Other members of ČEZ Group (fully consolidated compan

  23. Slide 23: Agenda

    Agenda ƒ Operational and Financial Results ƒ ČEZ Group Introduction ƒ Strategy goals ƒ The Czech Power Industry ƒ Nuclear Power ƒ Position of ČEZ Group 10.3A 15.09.20 ČEZ GROUP 23 2

  24. Slide 24: Harmonization Program with EU Rules

    Harmonization Program with EU Rules ČEZ Harmonization Program with EU Rules energy market liberalization 1996 2002 2006 2008 2001 2004 Integration of ČEZ Group Project „VIZE 2008“ Mergers & Acquisitions Transformation of ČEZ as the international company Renewal of generation sources ČEZ GROUP 24 2

  25. Slide 25: Changing Structure of ČEZ Group

    Changing structure of ČEZ Group Activities in ČEZ Group will be located to companies in regions. Regional structure is substituted by process oriented one. Děčín Hradec Králové ƒ Distribution network - ƒ Electricity metering services development ƒ Distribution network - dispatch Děčín ƒ Support serv

  26. Slide 26: ČEZ Group Expansion Plans

    ČEZ Group Expansion Plans Realized Acquisitions ČEZ‘s current operation ƒ Bulgaria (distribution) Potential acquisition Proceeding Acquisitions target ƒ Romania Electrica Oltenia (1.4 m costumers) Central Europe Other opportunities ƒ Bulgaria (generation - Bobov Dol, Russe, Varna) SE Europe ƒ Romani

  27. Slide 27: Retrofit of ČEZ's Power Plants

    Retrofit of ČEZ‘s Power Plants Retrofit of coal-fired power plants expected after 2010 • power plants were mostly constructed in 70s • desulphurization in 90s • more strict ecological limits effective 2015 within European Union • 5,700 MW of lignite-fired power plants will be reduced to 4,000 MW • c

  28. Slide 28: Expectation of lignite mining decline

    Expectation of lignite mining decline millions of tons per year meets retrofit requirements Splňuje podmínky meets retrofit pro KO requirements meets new power plant requirements 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 2055 2060 10_10 30.9 ČEZ GROUP 28 2

  29. Slide 29: ČEZ, a. s., and Bulgaria

    ČEZ, a. s., and Bulgaria Russe Elektrorazpredelenie Pleven Possessed (Pleven District Electric Power Distribution) distribution Internet: frodo.erp-pleven.bg companies Varna Elektrorazpredelenie Stolichno (Sofia Capital City Electric Power Distribution) Thermal Powe Internet: www.electro-sof.com Pla

  30. Slide 30: ČEZ, a. s., and Romania

    ČEZ, a. s., and Romania Electrica Moldova number of customers: 1.31 m electricity sold annualy: 4.1 TWh Other company selected as a preffered bidder. Electrica Oltenia number of customers: 1.36 m Source of map: Electrica SA, Bucharest, Romania electricity sold annualy: 6.8 TWh ČEZ, a. s., is taking

  31. Slide 31: ČEZ, a. s., and Romania (part 2)

    ČEZ, a. s., and Romania (part 2) Romanian electricity market will be fully opened effective July 1, 2007. There are lignite mines privatized together with power plants. Rovinari – mine Rovinari Turceni – mine Drăgoteşti and Jilţ Craiova II + Işalniţa – mine Berbeşti Rovinari Rovinari Berbeşti Jilţ T

  32. Slide 32: Agenda

    Agenda ƒ Operational and Financial Results ƒ ČEZ Group Introduction ƒ Strategy goals ƒ The Czech Power Industry ƒ Nuclear Power ƒ Position of ČEZ Group 10.3A 15.09.20 ČEZ GROUP 32 3

  33. Slide 33: GDP and Electricity Consumption in the Czech Republic

    GDP and Electricity Consumption in the Czech Republic 130 122.7 121.9 120 118.8 118.4 116.1 113.8 112.6 111.2 111.5 110.5 111.1 109.6 108,8 110 108.5 109.1 108.5 109.1 111.1 105.9 109.8 109.0 105.8 106.1 109.0 109.1 108.2 105.8 107.8 106.0 103.1 105.9 105.2 103.8 103.8 102.9 101.2 100 1994 1995 1996

  34. Slide 34: Power in the Czech Republic in Brief

    Power in the Czech Republic in Brief 2002 2003 ƒ Installed capacity as of 31st December 16,311 MW 17,344 MW ƒ Demand for electricity 53,670 GWh 54,807 GWh ƒ Net electricity generation 70,393 GWh 76,659 GWh ƒ Gross electricity generation 76,348 GWh 83,227 GWh Electricity Demand Structure (2003) Avera

  35. Slide 35: Current Model of the Electricity Market in the Czech Republic

    Current Model of the Electricity Market in the Czech Republic Regulatory Captive Competitive Office Customers environment protected by the law in generation Regulator guarantees equal conditions (regTPA) for all groups of market participants, controls charges for transmission and distribution ČEZ Tr

  36. Slide 36: Future Prospects of the Czech Energy

    Future Prospects of the Czech Energy Czech energy policy: Approved by the government in March 2004 30 year horizon Priorities: independence, security, safety and reliability The Energy Policy is based on energy self-sufficiency: ƒ Exploitation of domestic lignite mining deposits ƒ Acceptability of n

  37. Slide 37: Liberalization of Czech Electricity Market

    Liberalization of Czech Electricity Market 100 Customers with annual consumption: 90 Households 80 Captive (protected) customers 70 have no right to choose their supplier Other consumers 60 (excl. households) % 50 Those with continuous consumption metering 40 9 - 40 GWh 30 20 over 40 GWh 10 0 2001 2

  38. Slide 38: Electricity Demand in the Czech Republic Scenarios

    Electricity Demand in the Czech Republic Scenarios 70,000 66,000 Reality (1993 – 2003) 62,000 ČEZ, a. s. scenario (2004 – 2010) 58,000 GWh 54,000 Expected average annual growth*: 50,000 1.5% (ČEZ scenario) 2.0% (upper limit of Czech Energy Regulatory Office scenario) 46,000 42,000 1993 1994 1995 199

  39. Slide 39: Electricity Demand Structure in the Czech Republic

    Electricity Demand Structure in the Czech Republic 1993 2003 2005* 18% 21% 19% 23% 22% 25% 5% 4% 5% % 2% 2% % 1% 1% 49% 50% 48% Industry Households Commerce and Business Services Transport Construction Agriculture and Forestry */ Estimation 1.8A 25.2.200 ČEZ GROUP 39 3

  40. Slide 40: Wholesale prices of electricity in Europe

    Wholesale prices of electricity in Europe ƒ Wholesale prices of electricity for the year 2005 in the Czech Republic and neighbouring countries + 21% + 21% + 25% + 10% + 15% CZK/MWh 948 905 850 898 1,024 Change (%) -4.5 - 6.1 + 5.6 + 14.0 2001 2002 2003 2004 2005 Slovakia Poland Germany Austria Hunga

  41. Slide 41: Electricity Price is Undervalued

    Electricity Price is Undervalued Total Comparison with other Average Price of Electricity 1992 - 2005E commodities CZK/ MWh 1992 - 2002 Nominal + 11% 1,200 Water 342% 1,000 800 Rent of 308% Real flats 600 - 52 % 400 Bread 88% 200 Oil 43% 0 92 93 94 95 96 97 98 99 00 01 02 03 20 4 E 0 05 19 19 19 19

  42. Slide 42: Agenda

    Agenda ƒ Operational and Financial Results ƒ ČEZ Group Introduction ƒ Strategy goals ƒ The Czech Power Industry ƒ Nuclear Power ƒ Position of ČEZ Group 10.3A 15.09.20 ČEZ GROUP 42 4

  43. Slide 43: Nuclear Power Plants

    Nuclear Power Plants Type of reactor PWR - pressurized water reactor, as majority of reactor types around the world Basic description Based on the original Russian technical design with many improvements to achieve higher TEMELÍN operational safety, e. g.: new instrumentation and control system Elec

  44. Slide 44: Insurance of the Nuclear Power Plants of ČEZ, a. s.

    Insurance of the Nuclear Power Plants of ČEZ, a. s. ƒ Property damage insurance - NPP Dukovany since December 1998 - NPP Temelín since July 2000 ƒ Nuclear third party liability insurance (operational) - NPP Dukovany since January 1998 - NPP Temelín since July 2000 ƒ Nuclear third party liability ins

  45. Slide 45: Nuclear Provisions – Nuclear Decommissioning

    Nuclear Provisions – Nuclear Decommissioning Decommissioning of nuclear power plants Final disposal of radioactive waste and spent fuel Interim storage of spent nuclear fuel Decommissioning of nuclear power plants: - Amended Nuclear Act from 2002 defines obligations to create accounting provisions f

  46. Slide 46: Nuclear Provisions – Fuel Storage

    Nuclear Provisions – Fuel Storage Final disposal of radioactive waste and spent fuel: - contribution to the „nuclear account“ at the Czech National Bank - controlled by the state authority RAWRA (Radioactive Waste Repository Authority) - contribution stated by a government resolution in 1997 - CZK 5

  47. Slide 47: Nuclear Provisions (part 3)

    Nuclear Provisions (part 3) CAS nuclear provisions Interim storage CZK 26 / 22.5 per MWh Interim storage NPP Dukovany decommissioning CZK 406 m per year (CZK 155 m is tax deductible) of spent fuel NPP Temelín decommissioning CZK 265 m per year (CZK 125 m is tax deductible) Final storage CZK 50 per M

  48. Slide 48: Safe and Reliable Operation of Nuclear Power Plants

    Safe and Reliable Operation of Nuclear Power Plants Extension of NPP Dukovany lifetime by at least 10 years 9 Stable operation of Temelín NPP in operation 9 Possibility to build a new nuclear power plant ƒpolitical support ƒstrong investor ƒpublic acceptance of nuclear energy Acceptability of Nuclea

  49. Slide 49: Agenda

    Agenda ƒ Operational and Financial Results ƒ ČEZ Group Introduction ƒ Strategy goals ƒ The Czech Power Industry ƒ Nuclear Power ƒ Position of ČEZ Group 10.3A 15.09.20 ČEZ GROUP 49 4

  50. Slide 50: Benchmarking of Selected European Power Corporations

    Benchmarking of Selected European Power Corporations Total Debt / Total Assets Installed Capacity 50 2003 2003 45 120,000 40 100,000 35 30 80,000 MW % 25 60,000 20 15 40,000 10 20,000 5 0 0 Electrabel Electrabel Endesa ČEZ Vattenfall Iberdrola EnBW Vattenfall ENEL Endesa EnBW ČEZ E.ON Iberdrola E.ON

  51. Slide 51: What Do They Think of ČEZ?

    What Do They Think of ČEZ ? FORBES EUROMONEY ČEZ belongs to World‘s leading companies list. ČEZ‘s corporate governance is the ČEZ is the 1,125th biggest company best in the Czech Republic according in the world and the biggest in the to EUROMONEY journal. Czech Republic. Awarded in February 2004. Li

  52. Slide 52: ČEZ Group Internet Presentation

    ČEZ Group Internet Presentation Home Page of ČEZ, a. s.: www.cez.cz/eng Home Page of ČEZ Group: www.skupina-cez.cz/eng Product Information: www.duhovaenergie.cz/eng www.sce.cz www.vce.cz www.ste.cz www.sme.cz www.zce.cz 10_10 30.9 ČEZ GROUP 52 5

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