Cez As · PSECZ:CEZ
Cez As — Investor Presentation (March 2004)
53 slides from Cez As's investor presentation, March 2004
Slide 1: ČEZ Group Presentation
ČEZ GROUP PRESENTATION March 2004
Slide 2: Table of Contents
Table of Contents ČEZ Group Introduction 4 ČEZ Group Basics as of December 31, 2003 5 ČEZ Group in Highlights 6 Definition of Consolidated Unit 7 The consolidation group for accounting purposes 8 The Shareholders of ČEZ, a. s. as of December 31, 2003 9 ČEZ Group 10 ČEZ Group on the Way Abroad 11 The
Slide 3: Table of Contents - Continuation
Table of Contents - Continuation ČEZ Group Electricity Supply Structure 30 ČEZ Group‘s Employees as of 31 December 2003 31 Czech Wholesale Prices‘ Development 32 Current Prices of Electricity for Households 33 Components of average LV electricity price 34 Position of ČEZ Group in the Czech Power Mar
Slide 4: Agenda
Agenda ČEZ Group Introduction The Czech Power Industry Position of ČEZ Group Nuclear Power Operational and Financial Results 10.3A 15.09.20 ČEZ GROUP 4 4
Slide 5: ČEZ Group Basics as of December 31, 2003
ČEZ Group Basics as of December 31, 2003 Dominant power producer and supplier in the Czech Republic ČEZ Group represents whole chain from coal and limestone mining, electricity generation to trade, distribution and maintenance. It also includes nuclear research, telecommunications and heat busin
Slide 6: 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 dis
Slide 7: Definition of Consolidated Unit
Definition of Consolidated Unit ČEZ Group includes 94 companies, from which five are regional distribution companies (REAS): SČE, SME, STE, VČE, ZČE. Děčín Hradec Králové Praha Ostrava Plzeň Brno České Budějovice Accounting Consolidated Unit consists of 33 companies, incl. ČEZ, a. s. and all five ČE
Slide 8: The consolidation group for accounting purposes
The consolidation group for accounting purposes Consolidation rules ČEZ Group members: 94 companies Too large group for consolidation Consolidation group for accounting purposes: 33 companies Total assets 99.7%* of total assets of the consolidation group Net profit 99.3%* of net profit of the consol
Slide 9: The Shareholders of ČEZ, a. s. as of December 31, 2003
The Shareholders of ČEZ, a. s. as of December 31, 2003 National Property Fund (FNM) Institutional 67.61% Investors 21.95% Individuals 4.96% Custodians 5.48% Note: Custodians may manage portfolios of both individuals and institutional investors. 3.2A 25.08.20 ČEZ GROUP 9 9
Slide 10: ČEZ Group
ČEZ Group Subsidiaries of ČEZ, a. s. Affiliated companies of ČEZ, a. s. 100% CZK 45 m 100% CZK 40 m 68.88% CZK 1,258 m I&C Energo, s.r.o. Energetické opravny, a.s. ŠKODA PRAHA a.s. Maintenance Maintenance 100% CZK 18 m 51% CZK 4 m ČEZ ENERGOSERVIS, spol. s r.o. SIGMA ENERGO s.r.o. Raw Materials 64.8
Slide 11: ČEZ Group on the Way Abroad
ČEZ Group on the Way Abroad Our destinations: Poland Slovakia Bulgaria ČEZ Group intends to expand to energy sector of other Central and East European Countries 6.4 30.9.200 ČEZ GROUP 11 1
Slide 12: Agenda
Agenda ČEZ Group Introduction The Czech Power Industry Position of ČEZ Group Nuclear Power Operational and Financial Results 10.3A 15.09.20 ČEZ GROUP 12 1
Slide 13: Power in the Czech Republic in Brief
Power in the Czech Republic in Brief 2002 2003 Installed capacity as of 31st December 16,311 MW 17,344 MW Demand for electricity 53,670 GWh 54,807 GWh Net electricity generation 70,393 GWh 76,659 GWh Gross electricity generation 76,348 GWh 83,227 GWh Electricity Demand Structure (2003) Avera
Slide 14: New Energy Policy of the Czech Republic
New Energy Policy of the Czech Republic Draft submitted by Ministry of Industry and Trade (MIaT) for comments in June 2003 • 30 year horizon • priorities: independence, security, safety, and reliability • goals: • maximum effectiveness of (preferably domestic) resources utilisation • maximum respect
Slide 15: 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
Slide 16: Liberalization of Electricity Market in the Czech Republic
Liberalization of Electricity Market in the Czech Republic 100 Customers with annual consumption: 90 Households 80 Protected (captive) customers 70 have not right to choose supplier Other consumers 60 (excl. households) % 50 Those with permanent consumption measuring* 40 9 - 40 GWh 30 20 over 40 GWh
Slide 17: GDP and Electricity Consumption in the Czech Republic
GDP and Electricity Consumption in the Czech Republic 150 144.2 139.6 140 133.7 130.6 130.6 128.2 127.1 130 126.5 124.4 121.9 120 118.4 116.1 113.4 114.7 111.3 112.6 112.4 109.2 109.3 109.0 110 112.6 110.5 109.5 109.9 105.9 109.6 108.5 106.5 107.9 107.9 100 104.0 104.9 101.8 102.7 102.8 100.4 90 199
Slide 18: 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 50,000 46,000 42,000 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201 Zone according to Tractebel scenarios Zone a
Slide 19: Electricity Demand Structure
Electricity Demand Structure 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 19 1
Slide 20: Scheme of the Power Supply in the Czech Republic in 2003
Scheme of the Power Supply in the Czech Republic in 2003 in GWh (index 03/02) Pumped Sale in power Transmission Other Import** Export** Distribution storage plant grid losses* consumption network power plants premises losses Households 552 32 805 344 3,127 19,738 4,146 14,508 (102.7%) (115.2%) (114.
Slide 21: Agenda
Agenda ČEZ Group Introduction The Czech Power Industry Position of ČEZ Group Nuclear Power Operational and Financial Results 10.3A 15.09.20 ČEZ GROUP 21 2
Slide 22: ČEZ, a. s. Mission Statement
ČEZ, a. s. Mission Statement …to meet demand for electricity and ancillary services of both traditional and newly acquired customers on the basis of successful market operation. ČEZ, a. s. will reliably supply safely and environmentally friendly produced electricity, using preferentially its own sou
Slide 23: ČEZ, a. s. Business Vision
ČEZ, a. s. Business Vision 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 an increase of
Slide 24: ČEZ Group's Share in the Installed Capacity of the Czech Republic
ČEZ Group‘s Share in the Installed Capacity of the Czech Republic 14,285 15,073 15,324 17,344 20,000 18,000 16,000 5,049 14,000 (29%) 4,074 5,178 3,630 MW 12,000 (27%) (34%) (25%) 10,000 8,000 12,295 6,000 (71%) 10,655 10,999 10,146 4,000 (75%) (73%) (66%) 2,000 0 1993 1994 1995 1996 1997 1998 1999
Slide 25: Installed Capacity of ČEZ Group
Installed Capacity of ČEZ Group 10,655 12,295 14,000 12,000 1,932 1,217 (16%) 10,000 (11%) 1,760 3,760 8,000 (70%) (30%) MW 6,000 7,677 4,000 (72%) 6,603 (54%) 2,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Coal power plants Clean coal power plants Nuclear power plants Hydro power pl
Slide 26: System of Management of ČEZ, a. s.
System of Management of ČEZ, a. s. GENERAL MEETING, SUPERVISORY BOARD board of directors internal audit internal audit administration and management CEO executive officers executive executive executive executive executive executive executive executive executive executive executive executive director
Slide 27: ČEZ Group Power Plants
ČEZ Group Power Plants SPÁLOV LEDVICE II, III ÚSTÍ n/Lab.- STŘEKOV POŘÍČÍ II LES KRÁLOVSTVÍ NOVÝ HRÁDEK TUŠIMICE II MĚLNÍK II, III DVŮR KRÁLOVÉ JAROMĚŘ POČERADY nad LABEM PŘEDMĚŘICE PRUNÉŘOV I, II HRADEC KRÁLOVÉ nad LABEM MRAVENEČNÍK ŽELINA OBŘÍSTVÍ PASTVINY PŘELOUČ DĚTMAROVICE PRAHA PARDUBICE DLOUH
Slide 28: ČEZ Group's Coal-fired Power Plants Emissions
ČEZ Group‘s Coal-fired Power Plants Emissions Index 2003/1993 800 SO2 8% 700 NOx 51% Fly-ash 5% 600 CO 22% 500 400 300 200 100 SO2 NOx Fly-ash 0 1993 1994 1995 1996 1997 1998 1999 2000 CO 2001 2002 2003 5.1A 2.3.20 ČEZ GROUP 28 2
Slide 29: 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 22 293 50 000 12 437 22 624 Gross production of the others 30 000 46 445 48 008 50 842 10 000 60 934 Gross production of ČEZ, a. s. -10 000 -2 121 -2 184 -18 727 -11 615 Ba
Slide 30: ČEZ Group Electricity Supply Structure
ČEZ Group Electricity Supply Structure 60 2% 4% 50 Hydro power plants 3% 40 35% 42% 27% Nuclear power plants TWh 30 70% Clean coal power plants 20 Coal power plants 61% 56% 10 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2.15A 26.2.200 ČEZ GROUP 30 3
Slide 31: ČEZ Group's Employees as of 31 December 2003
ČEZ Group‘s Employees as of 31 December 2003 6% 2% ČEZ, a.s. (6,780) 3% ČEZ Group 4% Severočeská energetika, a.s. (1,409) (18,100 employees) Severomoravská energetika, a.s. (1,696) 38% 5% Východočeská energetika, a.s. (1,532) Středočeská energetická a.s. (1,548) 7% Západočeská energetika, a.s. (1,33
Slide 32: Czech Wholesale Prices' Development
Czech Wholesale Prices‘ Development CZK 970/MWh CZK 948/MWh CZK 905/MWh CZK 908/MWh CZK 850/MWh Year 2001 Year 2001 Year 2002 Year 2003 Year 2004 highest average price domestic electricity domestic electricity domestic electricity expectation set by regulator (ERÚ) price of ČEZ, a. s. price of ČEZ,
Slide 33: Current Prices of Electricity for Households
Current Prices of Electricity for Households ČEZ Group member Non-member CZK/kWh 3.44 CZK 12,040 CZK/kWh 3.36 CZK/kWh 3.50 CZK/kWh 3.53 CZK 11,760 CZK 12,250 CZK 12,355 CZK/kWh 3.56 CZK/kWh 3.36 CZK 12,460 CZK 11,750 CZK/kWh 3.69 CZK/kWh 3.18 CZK 12,915 CZK 11,130 Prices valid effective 1st January
Slide 34: Components of average LV electricity price
Components of average LV electricity price 18.03% 2.00% 35.08% 11.12% 33.77% Electricity Distribution ČEPS (Ancillary Services and Transmission) VAT Other This slide expresses price for protected customers - both small businesses and households – for year 2004. 9_7A 10.3.2004 ČEZ GROUP 34 3
Slide 35: Position of ČEZ Group in the Czech Power Market in 2003
Position of ČEZ Group in the Czech Power Market in January - December 2003 Eligible customers in the Czech Republic: 341 Eligible customers served by ČEZ Group: 237 ČEZ Group's Power Plants Net Electricity Consumption Share ČEZ Group‘s Final Consumption Share Other Other suppliers suppliers 57.5% 38
Slide 36: ČEZ's "Duhová energie" Product Offer for 2004
ČEZ’s “Duhová energie“ Product Offer for 2004 ČEZ, a. s. has started to sell its set of products for 2004 in September 2003. This set is called “Duhová energie“ and consists of 15 products. The set consists of 10 standard products (whole year supply) and 4 additional modifications of existing pr
Slide 37: Public Offer of ČEZ's "Duhová energie" for 2004
Public Offer of ČEZ‘s “Duhová energie“ for 2004 Full year 2004 Winter week - maximum Capacity (MW) Capacity (MW) Initial Offer: CZK 837/MWh Actual Offer: CZK 813/MWh 1 10 19 28 37 46 55 64 73 82 91 100 109 118 127 136 145 154 163 Hours year = 8,784 hours Summer week - minimum residual monthly 5 days
Slide 38: Agenda
Agenda ČEZ Group Introduction The Czech Power Industry Position of ČEZ Group Nuclear Power Operational and Financial Results 10.3A 15.09.20 ČEZ GROUP 38 3
Slide 39: NPP Temelín
NPP Temelín 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 operational safety, e. g.: new instrumentation and control system new monitoring system
Slide 40: NPP Dukovany - Performance Results
NPP Dukovany - Performance Results Unplanned Capability Loss Factor 8 7 6 5 % 4 3 2 1 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 NPP Dukovany average World average World median This factor expresses share of unplanned losses to achievable production. NPP Dukovany belongs to w
Slide 41: Public Opinion Research about Nuclear Power Plants
Public Opinion Research about Nuclear Power Plants (%) NPP Dukovany NPP Temelín 86 84 79 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 6 96 2003 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 continuation
Slide 42: Insurance of the Nuclear Power Plants of ČEZ, a. s.
Insurance of the Nuclear Power Plants of ČEZ, a. s. Property damage insurance - NPP Dukovany since December 1998 - NPP Temelín since July 2000 Nuclear third party liability insurance (operational) - NPP Dukovany since January 1998 - NPP Temelín since July 2000 Nuclear third party liability ins
Slide 43: Nuclear Provisions (part 1)
Nuclear Provisions (part 1) 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 reserves for decommissioning
Slide 44: Nuclear Provisions (part 2)
Nuclear Provisions (part 2) Final disposal of radioactive waste and spent fuel: - contribution to the „nuclear account“, controlled by the state authority „RAWRA“ - contribution stated by a government resolution in 1997 - CZK 50 per MWh produced in nuclear power plants - by 2002 regular payments bas
Slide 45: Agenda
Agenda ČEZ Group Introduction The Czech Power Industry Position of ČEZ Group Nuclear Power Operational and Financial Results 10.3A 15.09.20 ČEZ GROUP 45 4
Slide 46: Basic Data of ČEZ Group
Basic Data of ČEZ Group 1997 1998 1999 2000 2001 2002 2003 Capacity at end of period (MW) 10,999 10,900 10,151 10,146 10,146 11,146 12,295 Electricity sales (GWh) 49,333 48,179 46,570 50,449 50,850 53,174 68,756 Number of employees at end of period 11,157 10,314 9,749 9,278 8,011 7,677 18,100 Capita
Slide 47: Income Statement in Brief (CZK bn)
Income Statement in Brief (CZK bn) I. - III. Q 2000 2001 2002 2003 Operating Revenues 52.43 56.06 55.58 58.05 Operating Expenses 39.80 41.38 44.32 48.89 Income before interest, taxes 22.01 24.04 22.98 21.25 and depreciation (EBITDA) Operating Income (EBIT) 12.63 14.68 11.25 9.16 Other Expenses/Incom
Slide 48: Balance Sheet in Brief (CZK bn)
Balance Sheet in Brief (CZK bn) 30 Sep 2000 2001 2002 2003 Total Assets 222.26 229.03 231.47 293.85 Net Plant in Service 92.95 87.64 138.98 208.29 Construction Work in Progress 103.59 111.93 56.51 11.78 Shareholders´ Equity 129.44 136.73 143.68 154.88 Long-term Liabilities 70.61 64.48 59.60 60.96 Cu
Slide 49: Investment Program and Internally Generated Cash Flow by ČEZ Group
Investment Program (without financial investments) and Internally Generated Cash Flow by ČEZ Group 30 28.8 27.1 Net cash provided by operating activities Other projects 24.1 23.4 25 21.0 22.1 21.5 Transmission system 21.0 21.8 19.5 19.4 21.7 19.0 Waste treatment 20 18.3 19.5 14.7 18.8 Performance up
Slide 50: Development of Long-term Liabilities of ČEZ Group
Development of Long-term Liabilities of ČEZ Group Methodical change as of January 1, 2002 EUR USD EUR USD 7.24A 9.4.2003 MH – debts recounted to original currency 23% 38% 23% 32% (USD, EUR). CZK CZK 70 45% 39% 60 Bonds, total LT debt, total 50 23.0 24.2 Bonds, net of current CZK bn portion 40 19.0 O
Slide 51: Credit Rating of ČEZ, a. s. and the Czech Republic
Credit Rating of ČEZ, a. s. and the Czech Republic Standard & Poor‘s Moody‘s A+ A1 A A2 A- A3 BBB+ Baa1 BBB Baa2 BBB- Baa3 BB+ Ba1 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Czech Republic - LT Foreign Currency Government Bonds' Rating ČEZ, a. s. 3.1A 2.12.20 ČEZ GROUP 51 5
Slide 52: ČEZ Group is a Leading Corporate Name in Emerging Europe
ČEZ Group is a Leading Corporate Name in Emerging Europe One of the largest publicly traded utilities in Central and East European Countries Largest Central Europe-based energy chain One of the leaders in revenues and in profit in the Czech Republic First and one of the largest corporate bond issuer
Slide 53: 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 53 5