Cez As · PSECZ:CEZ
Cez As — Investor Presentation (August 2004)
56 slides from Cez As's investor presentation, Aug 25, 2004
Slide 1: ČEZ Group Presentation
ČEZ GROUP PRESENTATION August 2004 Conceived by Controlling department, ČEZ, a. s. Closing date: 25 August 2004
Slide 2: Table of Contents
Table of Contents ČEZ Group Introduction 4 ČEZ Group Basics as of June 30, 2004 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 June 11, 2004 9 ČEZ Group 10 ČEZ Group on the Way Abroad 11 ČEZ, a. s.,
Slide 3: Table of Contents - Continuation
Table of Contents - Continuation Balance of Electricity in the Czech Republic 31 ČEZ Group Electricity Supply Structure 32 ČEZ Group‘s Employees as of 30 June 2004 33 Czech Wholesale Prices‘ Development 34 Current Prices of Electricity for Households 35 Components of average LV electricity price 36
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 June 30, 2004
ČEZ Group Basics as of June 30, 2004 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 business
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
Slide 7: Definition of Consolidated Unit
Definition of Consolidated Unit ČEZ Group includes 99 companies, from which five are regional distribution companies: 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 ČEZ Group
Slide 8: The Consolidation Group for Accounting Purposes
The Consolidation Group for Accounting Purposes Consolidation rules ČEZ Group members: 99 companies Too large group for consolidation Consolidation group for accounting purposes: 33 companies Total assets 99.7%* of total assets of the consolidation group 24 fully consolidated 9 by equity method Net
Slide 9: The Shareholders of ČEZ, a. s. as of June 11, 2004
The Shareholders of ČEZ, a. s. as of June 11, 2004 National Property Fund (FNM) Institutional 67.61% Investors 23.00% Individuals 5.34% Custodians 4.05% Note: Custodians may manage portfolios of both individuals and institutional investors. Number of shareholders was searched out due to shareholders
Slide 10: ČEZ Group
ČEZ Group Subsidiaries of ČEZ, a. s. Affiliated companies of ČEZ, a. s. 100% CZK 150 m 100% CZK 40 m 68.88% CZK 1,258 m I & C Energo a.s. 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 Possible destinations: Bosnia and Herzegovina Bulgaria Poland Croatia Romania Macedonia Slovakia Moldova Ukraine 6.4 30.9.200 ČEZ GROUP 11 1
Slide 12: ČEZ, a. s., and Bulgaria
ČEZ, a. s., and Bulgaria Russe Elektrorazpredelenie Pleven Possessed (Pleven District Electric Power Distribution) distribution Internet: frodo.erp-pleven.bg/ companies Varna Thermal Powe Elektrorazpredelenie Stolichno (Sofia Capital City Electric Power Distribution) Plant – subjec Internet: www.ele
Slide 13: ČEZ, a. s., and Romania
ČEZ, a. s., and Romania Electrica Moldova number of customers: 1.31 m electricity sold annualy: 4.1 TWh Electrica Oltenia Source of map: Electrica SA, Bucharest, Romania number of customers: 1.36 m electricity sold annualy: 6.8 TWh ČEZ, a. s., is taking part in tender. Bids to be delivered on Octobe
Slide 14: 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 14 1
Slide 15: 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 16: New Energy Policy of the Czech Republic
New Energy Policy of the Czech Republic Government has approved new policy on March 10, 2004. • 30 year horizon • priorities: independence, security, safety, and reliability • goals: • maximum effectiveness of (preferably domestic) resources utilisation • maximum respect to the environment • complet
Slide 17: 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 18: 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 19: GDP and Electricity Consumption in the Czech Republic
GDP and Electricity Consumption in the Czech Republic 0 122.7 121.9 0 118.8 118.4 116.1 113.8 112.6 111.2 111.5 110.5 111.1 109.6 108,8 0 108.5 109.1 108.5 109.1 111.1 105.9 109.8 109.0 105.8 106.1 109.0 109.1 108.2 105.8 107.8 106.0 103.1 105.9 105.2 103.8 103.8 102.9 101.2 0 1994 1995 1996 1997 19
Slide 20: 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 21: Electricity Demand Structure in the Czech Republic
Electricity Demand Structure in the Czech Republic 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 21 2
Slide 22: 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 Other Transmission Import Export Distribution storage plant consumption grid losses network power plants premises losses 805 Households 552 32 344 3,127 19,738 4,146 14,508 (102.7%) (115.2%) (114.3%) (
Slide 23: 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 23 2
Slide 24: 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 25: 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 26: ČEZ Group's Share in the Installed Capacity of the Czech Republic
ČEZ Group‘s Share in the Installed Capacity of the Czech Republic 13,826 15,073 15,324 17,344 17,353 20,000 18,000 16,000 5,047 5,056 14,000 (29%) (29%) 4,074 5,178 3,591 MW 12,000 (27%) (34%) (26%) 10,000 8,000 12,297 12,297 6,000 10,235 (71%) (71%) 10,999 10,146 (74%) (73%) 4,000 (66%) 2,000 0 199
Slide 27: Installed Capacity of ČEZ Group
Installed Capacity of ČEZ Group 10,655 12,297 12,297 14,000 12,000 1,934 1,934 1,217 (16%) (16%) 10,000 (11%) 1,760 3,760 3,760 8,000 (70%) (30%) (30%) MW 6,000 7,677 4,000 (72%) 6,603 6,603 (54%) (54%) 2,000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 June 30, 2004 Coal power plants Cl
Slide 28: 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 executiv
Slide 29: 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 POČERADY nad LABEM PŘEDMĚŘICE PRUNÉŘOV I, II HRADEC KRÁLOVÉ nad LABEM MRAVENEČNÍK ŽELINA OBŘÍSTVÍ PŘELOUČ PASTVINY DĚTMAROVICE PRAHA PARDUBICE DLOUHÉ STRÁNĚ
Slide 30: 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 30 3
Slide 31: 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 Gross production of ČEZ, a. s. 60,934 -10,000 -2,121 -2,184 -18,727 -11,615 Ba
Slide 32: 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 32 3
Slide 33: ČEZ Group's Employees as of 30 June 2004
ČEZ Group‘s Employees as of 30 June 2004 7% 3% ČEZ, a.s. (6,624) 3% ČEZ Group 5% Severočeská energetika, a.s. (1,395) (18,127 employees) Severomoravská energetika, a.s. (1,617) 37% 5% Východočeská energetika, a.s. (1,452) Středočeská energetická a.s. (1,478) 7% Západočeská energetika, a.s. (1,254) Ú
Slide 34: Czech Wholesale Prices' Development
Czech Wholesale Prices‘ Development CZK 970/MWh CZK 948/MWh CZK 905/MWh CZK 898/MWh CZK 850/MWh Year 2001 Year 2001 Year 2002 Year 2003 Year 2004 highest average price domestic electricity domestic electricity domestic electricity domestic electricity set by regulator (ERÚ) price of ČEZ, a. s. price
Slide 35: Current Prices of Electricity for Households
Current Prices of Electricity for Households ČEZ Group member Non-member CZK/kWh 3.74 CZK 13,096 CZK/kWh 3.70 CZK/kWh 3.85 CZK/kWh 3.84 CZK 12,936 CZK 13,474 CZK 13,435 CZK/kWh 3.92 CZK/kWh 3.52 CZK 13,732 CZK 12,326 CZK/kWh 4.01 CZK/kWh 3.46 CZK 14,043 CZK 12,126 xample of price per kWh and annual
Slide 36: Components of Average LV Electricity Price
Components of Average LV Electricity Price 15.97% 2.05% 35.96% 11.40% 34.62% 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 36 3
Slide 37: Position of ČEZ Group in the Czech Power Market in 2003
Position of ČEZ Group in the Czech Power Market in 2003 ČEZ Group's Gross Electricity ČEZ Group‘s Final Production Share Consumption Share Other Other roducers suppliers 26.2% 42.5% 73.8% 57.5% Electricity Generated in Electricity ČEZ Group‘s Supplied by Power Plants Members of ČEZ Group ČEZ Group‘s
Slide 38: 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 39: 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 40: 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 40 4
Slide 41: 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 42: 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 2003 NPP Dukovany average World average World median This factor expresses share of unplanned losses to achievable production. NPP Dukovany belongs t
Slide 43: 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 44: Nuclear Provisions – Nuclear Decommissioning
Nuclear Provisions – Nuclear Decommissioning 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 provisions f
Slide 45: Nuclear Provisions – Fuel Storage
Nuclear Provisions – Fuel Storage Final disposal of radioactive waste and spent fuel: - contribution to the „nuclear account“ at the Czech National Bank - controlled by the state authority RAWRA (Radioactive Waste Repository Authority) - contribution stated by a government resolution in 1997 - CZK 5
Slide 46: Nuclear Provisions (part 3)
Nuclear Provisions (part 3) CAS nuclear provisions Interim storage CZK 26 / 22.5 per MWh Interim storage NPP Dukovany decommissioning CZK 406 m per year (CZK 155 m is tax deductible) of spent fuel NPP Temelin decommissioning CZK 265 m per year (CZK 125 m is tax deductible) Final storage CZK 50 per M
Slide 47: 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 47 4
Slide 48: Basic Data of ČEZ Group
Basic Data of ČEZ Group I. – II. Q 2000 2001 2002 2003 2004 Capacity at end of period (MW) 10,146 10,146 11,146 12,297 * 12,297 * Electricity sales (GWh) 50,449 50,850 53,174 69,005 33,871 Number of employees at end of period 9,278 8,011 7,677 18,100 18,127 Capital expenditures 21.35 15.71 10.42 23.
Slide 49: Income Statement in Brief (CZK bn)
Income Statement in Brief (CZK bn) I. – II. Q 2000 2001 2002 2003 2004 Revenues 52.43 56.06 55.58 84.82 50.51 Operating Expenses 39.71 41.38 44.32 77.32 39.30 Income before interest, taxes 22.10 24.04 22.98 25.11 20.23 and depreciation (EBITDA) Operating Income (EBIT) 12.72 14.68 11.25 7.50 11.21 Ot
Slide 50: Balance Sheet in Brief (CZK bn)
Balance Sheet in Brief (CZK bn) I. – II. Q 2000 2001 2002 2003 2004 Total Assets 222.26 229.03 231.47 274.14 278.43 Net Plant in Service 92.95 87.64 138.98 212.74 206.56 Construction Work in Progress 103.59 111.93 56.51 10.20 11.10 Shareholders‘ Equity 129.44 136.73 143.68 149.69 152.73 Long-term Li
Slide 51: Investment Program and Internally Generated Cash Flow
Investment Program (without financial investments) and Internally Generated Cash Flow by ČEZ Group 40 Distribution Net cash provided by 35 operating activities Other projects 35.8 Transmission system 30 28.8 Waste treatment 24.1 27.1 25 23.4 Performance 21.0 22.2 upgrade 22.3 21.7 21.3 CZK bn 19.5 E
Slide 52: Development of Long-term Liabilities of ČEZ Group
Development of Long-term Liabilities of ČEZ Group EUR USD USD 24% 36% EUR 25% 45% CZK CZK 80 40% 30% 71.8 70 Bonds, total 61.7 LT debt, total 60 28.6 Bonds, net of current 50 24.2 portion Other LT debt, net of 40 9.3 11.7 current portion 19.7 30 16.3 Accumulated provision for nuclear dec. and fuel 2
Slide 53: 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 53 5
Slide 54: 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 55: What Do They Think of ČEZ?
What Do They Think of ČEZ ? FORBES EUROMONEY ČEZ belongs to World‘s leading companies list. ČEZ‘s corporate governance is the ČEZ is the 1,125th biggest company best in the Czech Republic according in the world and the biggest in the to EUROMONEY journal. Czech Republic. Awarded in February 2004. Li
Slide 56: 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 30.9.2003 ČEZ GROUP 56 5