Duke Energy Corporation (Holding Company) · NYSE:DUK

Duke Energy Corporation (Holding Company) — Corporate Update (September 2002)

9 slides from Duke Energy Corporation (Holding Company)'s corporate update, September 2002

1. Slide 1: Monthly Chat

   we generate what’s next sm Monthly Chat September 2002 Rick Priory Chairman, President and Chief Executive Officer

2. Slide 2: Continued Weakness in Merchant Energy Business

   Continued Weakness in Merchant Energy Business z z Prolonged economic downturn z More than adequate power capacity z available in most regions across the US z Declining spark spreads and volatility z z z Credit weakness of counterparties z Continued market uncertainty z ‹Regulatory investigations ‹

3. Slide 3: Revised Earnings Guidance

   Revised Earnings Guidance 2002: $1.95 - $2.05 ongoing earnings per share 3Q one-time pretax charge of $250 to $300 million for costs associated with: „ „ Demobilization expenses for 3 construction projects „ „ Renegotiation of turbine contract with GE „ „ Write-off of selected site development expen

4. Slide 4: Diversified Business Model Supports Long-Term Strategy

   Diversified Business Model Supports Long-Term Strategy z z Strategic focus remains the same: Deliver energy and energy-related products and services to customers around the world z z Duke Energy’s business model is balanced to weather expected market cycles ‹Strong and diverse energy asset base ‹ ‹B

5. Slide 5: Energy Demand Growth Forecasts

   Energy Demand Growth Forecasts Electricity Natural Gas Consumption Growth Forecast 2002-2005 Consumption Growth Forecast 2002-2005 5 7 6 6.7 % 4 3.3 % 3.1 % 5 4.3 % USA 3 4 3.5 % 2.9% 2.1 % USA 3 2 2.9% 2 1 1 0 0 Western Europe Latin America Australia Western Europe Latin America Australia Source: E

6. Slide 6: Managing through the Cycle, Focusing on Long-Term Performance

   Managing through the Cycle, Focusing on Long-Term Performance z z Deferring construction on three merchant power plants z Renegotiating turbine contract with GE z z Aggressively reducing capital expenditures to maintain z financial flexibility ‹2002: ‹ $6.2 billion, excluding Westcoast ‹2003: ‹ $3.5

7. Slide 7: Preparing for the Future

   Preparing for the Future z z Increase direct wholesale business market share ‹Aggressively pursue origination and value-added ‹ transactions with customers ‹Optimize assets through risk management and ‹ physical trading z z Restructure to reduce costs – adjust scope and scale of operations to market

8. Slide 8: Why DUK?

   Why DUK? z z Long-term viability of merchant energy business z z Strong competitive position z z Resilient business model z z Balanced energy asset portfolio z z Solid dividend return z z Market value based on regulated operations – Duke Power and Gas Transmission z z “Free” option on merchant energ

9. Slide 9: we generate what’s next sm

   we generate what’s next sm

Duke Energy — Corporate Update (September 2002) on 6ix