Korea Electric Power Corporation · KRX:015760
Korea Electric Power — Investor Presentation (November 2005)
23 slides from Korea Electric Power's investor presentation, Nov 7, 2005
Slide 1: Form 6-K Report of Foreign Private Issuer
SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUERP Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the Month of November 2005 KOREA ELECTRIC POWER CORPORATION (Translation of registrant's name into English) 167, Samseong-do
Slide 2: Form 6-K Incorporation by Reference
This Report of Foreign Private Issuer on Form 6-K is deemed filed for all purposes under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, including by reference in the Registration Statement on Form F-3 (Registration No. 33-99550) and the Registration Stat
Slide 3: KEPCO Investor Presentation Disclaimer
This material has been prepared by Korea Electric Power Corporation for the information of investors of the company. This is not intended as an offer or solicitation for the purchase or sale of any financial instrument or securities. While reasonable care has been taken to ensure that the informatio
Slide 4: Table of Contents
Table of Contents Overview Business & Operation Financial Profile Miscellaneous
Slide 5: I. Overview
I. Overview
Slide 6: Power Monopoly in Korea
Power Monopoly in Korea Generation Transmission Distribution 100% * Based on gross generation (3Q 2005) 100% 96% Assets Revenues Generating Capacity Market Capitalization KRW 73.7 trillion (USD 70.6 billion) KRW 23.9 trillion (USD 22.9 billion) 55,453 MW KRW 22.8 trillion (USD 22.0 billion) Credit R
Slide 7: II. Business & Operation
II. Business & Operation
Slide 8: Sales Volume and Demand Growth
Sales Volume Demand Growth for 3Q 2005 (yoy) Residential Commercial Industrial Overall Volume Revenue 5.4% 8.6% 4.8% 6.0% 5.3% 6.7% 4.8% 5.7% Unit Sales Price 3Q 2004 Residential Commercial Industrial Average 92.2 95.9 60.5 75.2 (Won/Kwh) 92.3 97.7 60.5 75.4 3Q 2005 Demand Growth Forecast value for
Slide 9: Tariff History and Adjustment Strategy
Tariff History of Tariff Adjustment Management Strategy on Tariff Adjustment Rebalancing the tariffs among different customers to recover the different cost of supply, in a timely manner Reclassifying commercial, industrial and educational customers by supplying voltage Narrowing the gap between the
Slide 10: Fuel Price & Expense (1)
Fuel Price & Expense (1) Surging Fuel Price 1H 2005 Fuel Expense 1H 2004 1H 2005 yoy 53.6 57.9 8.1% 405.8 440.5 8.5% 244.2 262.2 7.4% Unit Price & FX Rate Change (1,000Won/ton,Won/liter, KRW/USD) B. Coal LNG B.C. Oil 1H 2004 1H 2005 yoy 1,116 1,254 12.4% 405 569 40.4% 1,542 1,428 -7.4% B. Coal LNG B
Slide 11: Strategy on Fuel Expense
Strategy on Fuel Expense Fuel Cost Mix Generation Mix Fuel Price & Expense (2) Maintaining optimal proportion of generation based on fuel type ^ Sustaining over 80% of nuclear & coal generation, above 90% utilization rate of nuclear Securing shares of foreign mines & fuel suppliers Re-trying direct
Slide 12: III. Financial Profile
III. Financial Profile
Slide 13: Capital Structure and Shareholder Mix
29.99% 23.97% 1.72% 29.33% 14.99% Capital Structure Capital Structure Interest Bearing Debt* Total SH's Equity : KRW 40.6 trillion (USD 39.2 billion) Total Liabilities : KRW 33.1 trillion (USD 31.9 billion) Liab. 45% SH's Equity 55% as of Dec.31, 2004 consolidated Shareholder Mix as of September 30,
Slide 14: Debt Profile & Strategy
Debt Profile & Strategy Debt Repayment Schedule Debt Currency Mix Fixed vs. Floating Mix 3Q2005 Target KRW 79% USD 11% JPY & Others 10% 75% 10% 15% KRW Fixed 50% Floating 50% FX Fixed 87% Floating 13% * Debt : KEPCO + GENCOs, as of Sept. 30, 2005 Total Fixed 57% Floating 43% 4.8 Total Maturing Debt
Slide 15: Improved Financial Status
Improved Financial Status * Based on consolidated financial statements * Interest cost is inclusive of the capitalized (Unit: KRW bn) Yoy 2000 KWh sold(GWh) 7.6% 257,731 5.4% 293,599 Revenues 8.1% 20,225 6.6% 22,775 EBITDA 1.6% 8,944 3.6% 10,313 Operating Income 15.0% 3,989 3.5% 5,224 Total Interest
Slide 16: Interim Results for the First Nine Months
3Q 2005 3Q 2004 %(yoy) Despite general economic slowdown, demand growth rate was decent to be 5.9% Power purchased for resale was up by 8.7% due to fuel price-hike Labor cost was up by 18.8% due to new hiring, previous year's salary increase & incentives Depreciation was up by 10.1% due to new facil
Slide 17: Capital Expenditure Forecast
Capital Expenditure Forecast Thermal 993 2,240 1,622 2,801 Nuclear 1,000MW New Capacity to be added T&D Facility Thermal Plant Nuclear Plant 3,028 4,052 4,173 1,902 2,452 2,996 2,287 971 2, 291 3,124 2004A 2005F 2006F 2007F 6,202 7,728 9,339 9,584 3,329 2,248 4,311 1,610 3,510 2008F 9,431 (in billio
Slide 18: Major Financial Statistics
Major Financial Statistics 18.5% 19.7% 23.6% 22.9% 18.6% 7.9% 8.1% 14.3% 10.2% 12.0% 2000 2001 2002 2003 2004 Operating & Net Profit Margin 82.3% 84.1% 65.1% 59.9% 48.6% 2000 2001 2002 2003 2004 Debt to Equity Ratio 2000 2001 2002 2003 2004 Return on Equity 8.4% Total borrowing/SH's equity 2000 2001
Slide 19: IV. Miscellaneous
IV. Miscellaneous
Slide 20: Overseas Business Strategy
Overseas Business Strategy Projects in Operation Country Period Project Cost Rehabilitating & Operating 650MW Coal-fired plant Philippines Sep.1995 ~ Sep.2010 USD 260 million Building & Operating 1200MW LNG-fired plant(BOT) Philippines Mar.1999 ~ Jun.2022 USD 709 million Building & Operating 100MW C
Slide 21: Industry Restructuring
Industry Restructuring Initial Plan, Current Status & Future DISTRIBUTION GENERATION Genco Setup + Sale 6 Gencos in operation, 100% owned by KEPCO Disco Setup + Sale Disco Setup scrapped by MOCIE in June 2004 Be prepared to sell Gencos when price gets right Management control is on for sale Improvin
Slide 22: Asset Sale
Asset Sale Assets on Sale * Book value: as of December 31, 2004 KOSEP 1,978 100.0% KPS 278 100.0% KEPID 23 49.0% KDHC 170 26.1% KOGAS 788 24.5% KOPEC 60 97.9% Powercomm 388 43.1% Book Value Ownership Plan to Sell Selling management control as originally planned By listing on domestic exchange or sel
Slide 23: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. KOREA ELECTRIC POWER CORPORATION By: /s/ Myung-Whan Kim ---------------------------------- Name: Myung-
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