Korea Electric Power Corporation · KRX:015760
Korea Electric Power — Investor Presentation (September 2004)
25 slides from Korea Electric Power's investor presentation, Sep 2, 2004
Slide 1: Form 6-K Korea Electric Power Corporation
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 September, 2004 KOREA ELECTRIC POWER CORPORATION (Translation of registrant’s name into English) 167, Samseong-
Slide 2: Report of Foreign Private Issuer deemed filed
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: Investor Presentation Sep 2004
Investor Sep This financial representation 2004 material 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 different
Slide 4: Table of Contents
Table I. II. 4 Overview Business of Contents & Operation III. Financial Profile IV. Strategic Initiatives
Slide 5: I. Overview
1. Overview B=...
Slide 6: Overview: Power Generation, Transmission and Distribution
Power 95 Generation * KRW71.7 Assets KRW22.8 Revenues Generating 50,432 KRW12.6 10.8 For Market 6 Based %the billion) 100% Monopoly MW year Capitalization Cap.: ontrillion Transmission Capacity gross 100% ended as ofgeneration in (US$60.2 (US$19.1billion) (US$ the and Korea end as Distribution ofofb
Slide 7: II. Business & Operation
ll. Business & Operation Ber.
Slide 8: Historical GDP and Electricity Demand Forecast
Historical 11.8 7.6 5.4 6.8 10.7 (3.6) 1996 (6.7) 4.7 2.7 6.2 3.0 2005: 2006 GDP: Forecast Actual Demand Volume 6.1% 4.7% 5.6% 6.9% 9.3% Unit 2003 Residential Won/Kwh Commercial Industrial Average * 8 2004 8.0 6.2 5.0 10.0 11.8 8.8 Sales 1997 ~ 1st 5.8% 6.1% an results data 2010: Revenue 74.7 value
Slide 9: Tariff History and Adjustment
History 6.5% 4.2% Jun91 Tariff Residential Commercial Industrial Average Jan03 Management Increasing Narrowing Proposing 9 6.0% 4.0% Adjustment Rebalancing Mar04 Feb92 of 0.0% 2.5% aTariff tariff tariff 5.9% -2.0% tariff-hike -2.2% May95 Objectives -1.5% 0.0% to Adjustment difference 4.9% -2.8% the
Slide 10: Surging Fuel Prices and Fuel Expense
Surging 2003 NEWC* Dubai proved with Unit (1,000Won/ton, Bituminous B.C. * Fuel In 1H Coal Oil LNG Nuke Total 10NEWC: Crude LNG billion 04 523 coal total Price Expense Oil 1,222 Average 3,497 405.8 1,542 210 Oil 1H to price 801 Fuel oil 244.3 Coal price Korean be fuel 222 03 Newcastle Price &840 Cha
Slide 11: Factors Mitigating Fuel Cost Increase
Factors 1-year The Generation 42% 40% 5% 17% 11% Fuel 2003 Nuclear 25% 35% Coal 15% Oil 30% 44% LNG 39% to 6% but 11 recover be changing volatility Price Cost cut maintained 1Hcontracted that &2004 Mix 40%+, & Hydro Mix mitigated Expense with of BC by respectively coal fuel and oilfuel (2) price pri
Slide 12: Fuel Expense Strategy
Fuel Internal We 2005 (annual Bituminous Dubai * Maintaining Strategy Diversifying Securing Gencos Exploring Developing 12Annual expect Expense—Strategy 2006 Crude percentage to Fuel more increase overseas collectively share overall 2007 alternative Coal efficient fuel Price Oil coal fuel 2008 6% 3%
Slide 13: III. Financial Profile
lll. Financial Profile Bro.
Slide 14: Capital Structure and Shareholders
Capital SH’s 47% Liab. Shareholder 53% Government KDB Resolution National Treasury Foreigners Interest Local US Others :Total * 14KRW Debt: Dollar Equity SH’s debt foreign 26.9% Currency 6.0% 4% 20.5 6.5 Structure KEPCO Bearing Pension Stock 62% Equity: 30.4% tril &tril Mix 27.0% currency Finance eq
Slide 15: Current Debt Profile and Repayment Schedule
Current 4.4 3.2 1.0 1 0 2H (in Debt June USD }JPY Others Total KRW Fixed FX Floating * 15.5 .3 15% Debt: tril 04 3.8 3.1 debt 11% 2004 Profile Currency 20% debt 68% vs. 62% 50% 89% 2005 Korean 1% 3.2 KEPCO vs. 38% 50% 11% portion Floating Target 15% 70% Target 2006 &Won) Mix Strategy is +2007 Repaym
Slide 16: Improved Financial Status
Improved (Unit: KWh Revenues EBITDA Operating Total Net Based Interest 16 Income Interest sold(GWh) KRW onbearing Bearing cost 14.8% consolidated Financial 18.8% Income 0.4% is bn) Cost* inclusive debt: Debt* 8,800 yoy 18,708 11.8% 1,483 34.9% Status 4.3% 2000 KEPCO+GENCOs 4.8% financial 3.0% 10.2%
Slide 17: First Half Results
First (Unit Sale Revenues Power Labor Retirement Depreciation Expenses Investment Interest FX Other Ordinary Provision Despite Fuel Maintenance Korea Operating Net information generating * 17This KEPCO+Gencos gain loss income profit of 3,497 cost Half :257 operating 1,149 income: 261 expenses: 708 W
Slide 18: Conservative Capital Expenditure
Capital Conservative (in 9,971 2,767 7,882 9,432 9,708 3,549 1,885 2,038 2,813 4,274 2,297 4,391 2004F 3,547 Nuclear New 1,002 2,507 18 billion Capacity 9,898 2, 3,869 1,476 2,578 4,088 4,467 1,500 700 2005F Expenditure Plant 853 Korean 950 1,100 Official 2006F Thermal to 1,650 be Won) 1,000Mw added
Slide 19: Major Operating and Financial Statistics
Major Operating 19.7% 22.9% 23.6% 13.0% Debt 82.3% 52.3% 59.9% 65.1% Average 6.3% 8.2% Kepco+Gencos Return 2000 5.2% 5.8% 4.2% 4.4% * 2004 192000~2003:based to 2001 6.1% 5.1% Financial 19.3% 7.9% 84.1% on Equity Debt Asset & 2002 8.1% Net 18.5% Cost Ratio Statistics 2003 Profit 10.2% on 14.3% total
Slide 20: IV. Strategic Initiatives
IV. Strategic Initiatives Bro.
Slide 21: Industry Restructuring Status
Industry Initial Current Plan Future Be Genco 6 Management Improving GENERATION All DIVISIONAL Disco Each New DISTRIBUTION Sale IPO KEPCO Scrapping This 21Gencos prepared gencos has of policy cleared system division Setup Plan, Setup Strategy KOSEP Status been will Restructuring inwas Disco the exce
Slide 22: Asset Sale Plan
Asset Assets Book (in KOSEP KPS KEPID KDHC KOGAS KOPEC Powercomm Plan Selling Timing Subject After the By Financial * 22Book billion listing industry to 267 Government’s Value Sale on Sell management 159 & value: 22 to 1,991 69 740 100.0% projection Sale on method Korean Government’s 49.0% 97.9% 26.
Slide 23: Overseas Business Strategy
Overseas Why Supplementing Conservative Taking Supported Bearing Strategy Establishing Return Diversifying Project 23 domust advantage financing in we Business by mind go justify fair business cash Government abroad? low that reputation with of flow –the profitability regional Background domestic po
Slide 24: Investor Presentation Sep 2004
Investor Sep 2004Presentation
Slide 25: Signatures
SIGNATURES Pursuant to the requirements of the Securities Exchange Act 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/ Kim, Myung Whan Name: Kim, Myung-Whan Title: General Manager of I
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