CEZ As · PSECZ:CEZ
CEZ As — Investor Presentation (April 2003)
50 slides from CEZ As's investor presentation, April 2003
Slide 1: ČEZ - Czech power company
10.16A 01.04.2003 PL ČEZ - Czech power company April 2003 duhová energie rainbow power 1
Slide 2: Table of Contents
Table of Contents 10.13A 31.3.2003 PL ČEZ - Basics 2002 4 The Czech Power Industry 5 Current Model of the Electricity Market in the Czech Republic 6 Liberalization of Electricity Market in the Czech Republic 7 GDP and Electricity Consumption in the Czech Republic 8 Electricity Demand in the Czech Re
Slide 3: Table of Contents - Continuation
Table of Contents - Continuation 10.14A 31.3.2003 PL NPP Temelín - the Most Important Improvements of the Design 29 NPP Dukovany - Performance Results 30 Public Opinion Research about Nuclear Power Plants (%) 31 Insurance of the Nuclear Power Plants of ČEZ 32 Regulation and Prices in Power Industry
Slide 4: ČEZ - Basics 2002
ČEZ - Basics 2002 10.2A 31.3.2003 PL • Dominant power producer in the Czech Republic • Prepared for strong competition on the European market • 49,873 GWh - net electricity generation in 2002 • 11,146 MW in operation (from 04/2003 12,146 MW) * • 1,000 MW in construction (from 04/2003 0 MW) * • 7,250
Slide 5: The Czech Power Industry
10.3A 17.05.2001 ZM The Czech Power Industry Position of ČEZ Nuclear Power Ownership Restructuring Operational and Financial Results duhová energie rainbow power 5
Slide 6: Current Model of the Electricity Market in the Czech Republic
Current Model of the Electricity Market in the Czech Republic 2.44A 08.04.2003 IN Regulatory Protected 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 a
Slide 7: Liberalization of Electricity Market in the Czech Republic
Liberalization of Electricity Market in the Czech Republic 8.13 15.4.2003 MH 100 Customers with annual consumption: ? 90 subject 80 to Protected (captive) customers approval 70 have not right to choose supplier 60 % less than 0.1 GWh 50 ? 0.1 - 9 GWh 40 9 - 40 GWh 30 20 over 40 GWh 10 0 2001 2002 20
Slide 8: GDP and Electricity Consumption in the Czech Republic
GDP and Electricity Consumption in the Czech Republic 1.13A 31.3.2003 PL 160% 144.2 139.6 140% 133.7 130.6 128.2 127.1 126.5 124.4 117.5 118.8 120% 113.4 112.1 110.9 115.1 120.9 109.2 112.9 111.3 112.6 109.3 111.4 108.3 109.5 112.4 103.2 106.5 102.2 107.9 107.9 100% 104.9 101.8 104.0 102.7 102.8 100
Slide 9: Electricity Demand in the Czech Republic Scenarios
Electricity Demand in the Czech Republic Scenarios 1.43A 11.04.2003 MH 70,000 66,000 Reality (1993 – 2002) 62,000 ČEZ scenario (2003 – 2010) 58,000 TWh 54,000 50,000 46,000 42,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Zone according to Tractebel sc
Slide 10: Electricity Demand Structure
Electricity Demand Structure 1.8A 31.3.2003 PL 1993 2002* 2005* 18% 18% 19% 23% 22% 5% 5% 25% 4% 4% 2% 2% 1% 1% 1% 49% 53% 48% Industry Households Commerce and Business Services Transport Construction Agriculture and forestry *) Estimation duhová energie rainbow power 1
Slide 11: Average Weekly Peak Loads on the Transmission Grid Level
Average Weekly Peak Loads on the Transmission Grid Level 1.14A 13.2.2003 PL (for days Tue-Fri, recalculated for 50 Hz and standard temperature) 11,000 10,000 9,000 MW 8,000 7,000 6,000 5,000 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 Week 1989 2001 2002 duhová energie rainbow power 1
Slide 12: ČEZ Milestones
ČEZ Milestones 2.2A 8.4.2003 MH 1990 Separation of regional distribution companies, heat and other activities 1992 1993 ČEZ established as Joint-Stock Company ČEZ partially privatized (27%) 1996 Regional distribution companies established as joint-stock companies 1994 Energy Act passed by Parliament
Slide 13: Power in the Czech Republic in Brief in 2002
Power in the Czech Republic in Brief in 2002 1.1A 31. 03. 2003 PL Czech Republic Czech power market and Installed capacity its participants as of 31st December 2002 16,311 MW Maximum load in 2002 11,205 MW ČEZ - Net electricity generation 70,393 GWh sale of purchased energy 5.8% ČEZ - IPP sale of it
Slide 14: Scheme of the Power Supply in the Czech Republic in 2002
Scheme of the Power Supply in the Czech Republic in 2002 (GWh, index 02/01) 1.4A 07.04.2003 PL Pumped Sale in power Transmission Other Import** Export** Distribution storage plant grid losses* consumption network power plants premises losses Households 479 28 694 494 4,085 16,298 4,061 14,122 (99.2%
Slide 15: ČEZ's Share in the Installed Capacity of the Czech Republic
ČEZ´s Share in the Installed Capacity of the Czech Republic 1.12A 1.4.2003 PL 14,285 13,826 13,793 14,937 15,073 15,293 15,216 15,324 15,443 16,311 18,000 16,000 14,000 5,165 3,938 4,074 4,393 5,178 5,297 (32%) 3,630 5,065 12,000 3,591 3,609 (25%) MW 10,000 8,000 6,000 11,146 10,655 10, 999 10,999 1
Slide 16: Position of ČEZ
10.4A 18.05.2001 ZM The Czech Power Industry Position of ČEZ Nuclear Power Regulation and Prices in Power Industry Ownership Restructuring Operational and Financial Results duhová energie rainbow power 1
Slide 17: ČEZ Mission Statement
ČEZ Mission Statement 2.1A 31.03.2003 MH …to meet demand for electricity and auxiliary services of both traditional and newly acquired customers on the basis of successful market operation. ČEZ will reliably supply safely and environmentally friendly produced electricity, using preferentially its ow
Slide 18: ČEZ Business Vision
ČEZ Business Vision 2.24A 31.03.2003 MH To ensure optimum level of electricity sales, enabling efficient use of production capacities, to be a respected, sought-after, reliable commercial partner and an attractive employer of skilled employees, and thus to ensure an attractive return on equity and a
Slide 19: Organizational Chart of ČEZ as of April 2003
Organizational Chart of ČEZ as of April 2003 2.6A 8.4.2003 MH GENERAL MEETING SUPERVISORY BOARD JOINT-STOCK COMPANY Chairman BOARD OF DIRECTORS STATUTORY BODIES Internal NUCLEAR COAL & HYDRO Chief Executive Officer Audit PRODUCTION PRODUCTION HEADQUARTERS Strategical Finance Nuclear Coal & Hydro Tra
Slide 20: ČEZ Power Plants
ČEZ Power Plants 2.8A 01.04.2003 PL ÚSTÍ n. L. LEDVICE II, III POŘÍČÍ II TUŠIMICE II MĚLNÍK II, III DVŮR KRÁLOVÉ POČERADY MĚLNÍK MRAVENEČNÍK PRUNÉŘOV I, II ŽELINA HR. KRÁLOVÉ K. VARY DĚTMAROVICE PRAHA PARDUBICE DLOUHÉ STRÁNĚ I, II TISOVÁ I, II CHVALETICE OSTRAVA VRANÉ ŠTĚCHOVICE I ŠTĚCHOVICE II PLZE
Slide 21: Installed Capacity of ČEZ
Installed Capacity of ČEZ 2.16A 07.04.2003 PL 11,146 12,086 14,000 12,000 1,869 10,000 1,869 3,760 8,000 2,760 MW 6,000 4,000 6,517 6,457 2,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003* 2004* 2005* Coal power plants Clean coal power plants Nuclear power plants Hydro power plants Note
Slide 22: ČEZ's Coal-fired Power Plants Emissions
ČEZ´s Coal-fired Power Plants Emissions 5.1A 1.4.2003 PL 800 Index 2002/1993 SO2 9% 700 NOx 51% Fly-ash 5% 600 CO 27% 500 kt 400 300 200 SO2 100 NOx Fly-ash 0 CO 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 duhová energie rainbow power 2
Slide 23: Balance of Electricity in the Czech Republic
Balance of Electricity in the Czech Republic 1.10A 02.04.2003 PL Balance of import and export of the others 70,000 636 1,949 996 1,023 1,388 60,000 777 17 1,598 1,902 15,991 4,204 50,000 13,328 14,486 16,590 17,220 12,437 18,646 40,000 22,624 22,485 GWh 30,000 22,230 20,000 46,445 46,361 48,008 45,7
Slide 24: ČEZ Electricity Supply Structure
ČEZ Electricity Supply Structure 2.15A 2.4.2003 PL 60 4% 3% 50 40 47% 35% 30 TWh 20 50% 61% 10 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003* 2004* 2005* Coal power plants Clean coal power plants Nuclear power plants Hydro power plants *) Estimation duhová energie rainbow power 2
Slide 25: Number of ČEZ Employees as of December 31
Number of ČEZ Employees as of December 31 4.1A 2.4.2003 PL 14,000 13,723 13,000 12,143 12,000 11,664 ČEPS 11,280 11,157 11,000 10,314 10,000 9,749 483 9,278 9,000 483 ČEZ 8,011 8,000 9,266 ČEZ 7,677 459 8,795 427 7,000 ČEZ 7,552 ČEZ 7,250 6,767 6,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Slide 26: Nuclear Power
10.5A 18.05.2001 ZM The Czech Power Industry Position of ČEZ Nuclear Power Regulation and Prices in Power Industry Ownership Restructuring Operational and Financial Results duhová energie rainbow power 2
Slide 27: NPP Temelín - Main Events
NPP Temelín - Main Events 2.26A 15.04.2003 MH 1986 Building permit issued 1987 Construction of operational buildings commenced 1990 Construction of units No. 3 and 4 stopped 1993 Contracts ČEZ - Westinghouse signed 1995 Transformation of the main contracts ČEZ - Škoda Praha 1995-1998 Change of cabli
Slide 28: NPP Temelín – Details
NPP Temelín – Details 2.27A 31.03.2003 MH Type of reactor PWR - pressurized water reactor. as majority of reactor types in the world, proven types in CIS, Slovakia, Finland, Hungary and Bulgaria (totally different from Chernobyl reactor) Basic description Based on the original Russian technical desi
Slide 29: NPP Temelín - the Most Important Improvements of the Design
NPP Temelín - the Most Important Improvements of the Design 2.29A 31. 03.2003 MH Replacement of the instrumentation and control system (I&C) Replacement of the nuclear fuel Replacement of the radiation monitoring system Replacement of the diagnostic and monitoring system Replacement of the cabling (
Slide 30: NPP Dukovany - Performance Results
NPP Dukovany - Performance Results 2.20A 10.04.2003 MH Global reactor rankings as of December 31, 2001 (Cumulative Load Factor) Rank out of 421: 92 80 102 79 82 80 Cumulative (lifetime) average load factor 80.3 80.9 79.6 81.0 78 76 (%) 74 72 70 70.4 68 66 64 Unit 1 Unit 2 Unit 3 Unit 4 Arithmetic No
Slide 31: Public Opinion Research about Nuclear Power Plants (%)
Public Opinion Research about Nuclear Power Plants (%) 2.39 02.04.2003 PL NPP Dukovany NPP Temelín 86 84 75 73 69 69 71 71 65 67 59 60 58 58 60 55 55 52 52 52 94 95 1 8 93 4 5 96 6 7 97 98 99 2 1995 1996 1997 1998 2000 00 /0 /9 /9 /9 /9 /9 /0 4/ 3/ 3/ 3/ 3/ 3/ 5/ 4/ 11 11 11 11 11 11 10 Support of c
Slide 32: Insurance of the Nuclear Power Plants of ČEZ
Insurance of the Nuclear Power Plants of ČEZ 2.38A 09.04.2003 EN y Property damage insurance - NPP Dukovany since December 1998 - NPP Temelín since July 2000 y Nuclear third party liability insurance (operational) - NPP Dukovany since January 1998 - NPP Temelín since July 2000 y Nuclear third party
Slide 33: Regulation and Prices in Power Industry
10.6A 17.05.2001 ZM The Czech Power Industry Position of ČEZ Nuclear Power Regulation and Prices in Power Industry Ownership Restructuring Operational and Financial Results duhová energie rainbow power 3
Slide 34: Energy Policy of the Czech Republic
Energy Policy of the Czech Republic 1.7AD 8.4.2003 MH Based on pillars similar to Energy Policy of EU (protection of environment, reliability of energy supply, competitiveness of economy) Legislation framework for principal objectives of energy policy comprises the new Energy Act and the Act on Ener
Slide 35: Progress in Establishing of Regulatory Framework
Progress in Establishing of Regulatory Framework 8.2A 8.4.2003 MH • Clean Air Act Key legislation • Energy Act (effective since January 1, 2001, issued and implemented amendment expected in 2003) • Atomic Act • Environmental Impact Assessment Act (EIA) • Act on Energy Economy Driven by the • Act on
Slide 36: Development of Electricity Prices (without VAT)
Development of Electricity Prices (without VAT) 9.3A 31.10.2002 MH Index households/industry: 0.46 1.44 2.5 2.29 ? 2.0 ? 2.02 CZK/kWh 1.5 1.41 ? 1.0 1.13 ? 0.95 0.5 0.0 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Consumers from HV and VHV Transfer prices ČEZ - REAS (transmi
Slide 37: ČEZ's Product Offer for 2003 - Rainbow Power
ČEZ’s Product Offer for 2003 - “Rainbow Power” 9.1A 9.4.2003 MH • ČEZ started to sell its set of products „Rainbow Power“ for 2003 in the third quarter of 2002 • This set consists of 11 individual standard products • A possibility of an option for some products above • Publicly offered to REAS, trad
Slide 38: Public Offer of Rainbow Power for 2003
Public Offer of “Rainbow Power” for 2003 9.6A 09.04.2003 PL Winter week - maximum Full year 2003 Capacity MW Capacity MW 108 144 153 117 126 135 162 36 72 81 18 27 45 54 63 90 99 0 9 745 CZK/MWh hours year = 8,760 hours Summer week - minimum residual monthly 5 days block Capacity annual 5 days block
Slide 39: Ownership Restructuring
10.7A 17.05.2001 ZM The Czech Power Industry Position of ČEZ Nuclear Power Regulation and Prices in Power Industry Ownership Restructuring Operational and Financial Results duhová energie rainbow power 3
Slide 40: The Shareholders of ČEZ as of February 18, 2003
The Shareholders of ČEZ as of February 18, 2003 3.2A 09.04.2003 PL Institutional National Property Investors Fund (FNM) 18.6% 67.6% Individuals 4.3% Custodians 9.5% Note: Custodians may manage portfolios of both individuals and institutional investors duhová energie rainbow power 4
Slide 41: Establishing of New ČEZ Group
Establishing of New ČEZ Group 2.32A 09.04.2003 MH ČEZ Shareholders´ equity CZK bn 6.7 Shareholders´equity as on Sept. 30, 2002 Shareholders´ equity CZK bn 126 Share of ČEZ 3,0 % + 48,0 % Share of FNM 67.6 % Shares as on April 1, 2003 SČE Shareholders´ equity CZK bn 8.0 ČEZ Share of ČEZ 0 % + 34,0 %
Slide 42: Ownership transformation – Procedure of the Transaction
Ownership transformation – Procedure of the Transaction 2.34A 08.04.2003 MH January/December 2001- Privatization tender for all state shares in ČEZ + 6 distributors but no investor selected at the end March 2002 - Government confirms the idea of reintegration May 2002 - Government approves transacti
Slide 43: Operational and Financial Results
10.8A 17.05.2001 ZM The Czech Power Industry Position of ČEZ Nuclear Power Regulation and Prices in Power Industry Ownership Restructuring Operational and Financial Results duhová energie rainbow power 4
Slide 44: Basic Data
Basic Data 7.1A 09.04.2003 ZM 1997 1998 1999 2000 2001 2002 Capacity at end of period (MW) 10,999 10,900 10,151 10,146 10,146 11,146 Electricity sales (GWh) 49,333 48,179 46,570 50,449 50,850 53,174 Number of employees at end of period 11,157 10,314 9,266 8,795 7,552 7,250 Capital expenditures in CZ
Slide 45: Income Statement in Brief (CZK bn)
Income Statement in Brief (CZK bn) 7.3A 09.04.2003 ZM 1997 1998 1999 2000 2001 2002 Operating Revenues 54.81 54.97 53.53 52.43 56.06 55.58 Operating Expenses 40.77 42.3 43.49 39.8 41.38 44.32 Income before interest, taxes 21.3 21.1 19.08 22.01 24.04 22.98 and depreciation (EBITDA) Operating Income (
Slide 46: Balance Sheet in Brief (CZK bn)
Balance Sheet in Brief (CZK bn) 7.5A 09.04.2003 ZM 1997 1998 1999 2000 2001 2002 Total Assets 183.06 196.21 211.49 222.26 229.03 231.47 Net Plant in Service 89.82 95.44 94.75 92.95 87.64 138.98 Construction Work in Progress 74.88 81.34 91.46 103.59 111.93 56.51 Shareholders´ Equity 107.93 117.92 122
Slide 47: Investment Program and Internally Generated Cash Flow
Investment Program (without financial investments) and Internally Generated Cash Flow 6.3AD 17.4.2003 MH 30 28.8 27.1 Net cash provided by Payments for nuclear fue operating activities 25 24.1 Capitalized interest 23.4 21.0 22.1 21.8 21.5 21.0 Nuclear power - Temelín 19.5 19.4 21.7 19.0 20 18.3 Othe
Slide 48: Development of Long-term Liabilities
Development of Long-term Liabilities 7_24A 11.04.2003 MH EUR USD Including financial 6% EUR EU USD 25% 8,1 USD Methodical change as of January 1, 2002 derivatives (CZK) 23% R 38% CZK 36% 7.24A 9.4.2003 MH – debts recounted to original currency CZK CZK 22% (USD, EUR) 70 69% 39% 64.5 42% 59.6 60 21.4
Slide 49: Credit Rating of ČEZ and the Czech Republic
Credit Rating of ČEZ and the Czech Republic *) 3.1A 27.01.2003 Pl A+ A1 A A2 A- A3 BBB+ Baa1 BBB Baa2 BBB- Baa3 BB+ Ba1 1994 1995 1996 1997 1998 1999 2000 2001 2002 Standard & Poor´s Moody´s ČR *) *) LT Foreign Currency Government Bonds' Rating ČR *) ČEZ, a. s. ČEZ, a. s. duhová energie rainbow powe
Slide 50: ČEZ is a Leading Corporate Name in Emerging Europe
ČEZ is a Leading Corporate Name in Emerging Europe 2.37A 8.4.2002 MH One of the largest publicly traded utilities in Central and Eastern Europe Largest electricity producer in the region One of the leaders in revenues and in profit in the Czech Republic First and one of the largest corporate bond is