EX-99 3 ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 [Exelon Logo] Exelon Corporation Positioned for Success Robert S. Shapard Executive Vice President and CFO Deutsche Bank Securities, Inc. 8th Annual Electric Power Conference June 11, 2003 [Exelon Logo] Forward-Looking Statements This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by a registrant include those discussed herein as well as those discussed in Exelon Corporation's 2002 Annual Report on Form 10-K in (a) ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations--Business Outlook and the Challenges in Managing Our Business for Exelon, ComEd, PECO and Generation and (b) ITEM 8. Financial Statements and Supplementary Data: Exelon--Note 19, ComEd--Note 16, PECO--Note 18 and Generation--Note 13, and (c) other factors discussed in filings with the Securities and Exchange Commission (SEC) by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company and Exelon Generation Company, LLC (Registrants). Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this presentation. [Exelon Logo] What Is Exelon?
------------------------------------------------------------------------------------------------------------ US Electric US 2002 Companies Companies ------------------------------------------------------------------------------------------------------------ US Retail Electric Customers 5.1 Million 1st - Nuclear Capacity 15,800 MWs* 1st - US Capacity Resources 40,000 MWs** 2nd - Revenues $15.0 Billion 2nd 105th Net Income $1.4 Billion 1st 50th Market Cap (as of 6/5/03) $18.8 Billion 3rd 97th ------------------------------------------------------------------------------------------------------------ * Includes AmerGen investment ** Operating capacity at 12/31/02; includes AmerGen and Sithe investments Sources: Company reports, Thomson Financial, Bloomberg
[Exelon Logo] Accomplishments - Creating Real Value Since Exelon was created in late 2000: o Provided average annual growth of 12% in operating EPS*, excluding one-time items, and 4.3% in dividends o Retired $1.2 billion of transition debt and refinanced $2.8 billion of debt, resulting in total interest expense reduction of about $120 million o Achieved 93.5% average annual nuclear capacity factor o Improved energy delivery reliability by 26% in Outage Duration and 18% in Outage Frequency * See 4/3/03 8-K at www.exeloncorp.com for reconciliation to GAAP EPS. [Exelon Logo] Opportunities and Challenges for 2003 o Enterprises (rationalize investments) o Exelon New England plants (operate, integrate and optimize) o Sithe Energies investment (buy, sell, restructure) o Optimize generation supply portfolio and limit market risk o The Exelon Way [Exelon Logo] Exelon New England o Strategic assets - 2,421 MWs, ~7000 heat rate Mystic 8 & 9 and Fore River o Retire - Mystic 4, 5 & 6 and New Boston 1 o Exelon Boston Generating project financing [Exelon Logo] Sithe Energies o Call notice issued May 29 o Continue to work on sale of the investment o May sell individual assets o 24 units - 1,552 MWs [Exelon Logo] Optimize Supply Portfolio and Limit Market Risk [Slide shows a map of the North American Electric Regional Councils, including WSCC, MAPP, NPCC, MAIN, ECAR, MAAC, SPP, SERC, ERCOT and FRCC. Stars within the MAIN and MAAC regions denote the regions in which Exelon Energy Delivery's retail electric customers are located.] Exelon Energy Delivery Retail Electric Customers 3.6M Northern Illinois 1.5M Southeastern Pennsylvania Total: 40,764 MW (1) 26,389 MW Operating 12,761 MW Contracted 1,614 MW in Construction (1) Based on Exelon Generation's ownership and long-term contracts at 5/31/03, including AmerGen Energy Company, LLC; excludes investment in Sithe Energies, Inc. NPCC: 4,066 MW Total 2,452 MW Operating 1,614 MW in Construction MAIN: 20,164 MW Total 11,028 MW Operating 9,136 MW Contracted ECAR: 500 MW Contracted MAAC: 10,665 MW Total 10,415 MW Operating 250 MW Contracted SPP: 795 MW Contracted SERC: 900 MW Contracted ERCOT: 3,674 MW Total 2,494 MW Operating 1,180 MW Contracted
[Exelon Logo] The Exelon Way Model Characteristics New Model |Key Dimensions _________________ | | | | -> | Integrate/ | Support | -Realign support | | Centralize | Functions - | resources | |________________| One Source | | | -Restructure the [Exelon Logo] | _________________ | business units _____________________ | | | Business | | | | | Consolidate/ | Units - | -Optimize |One Company, |-------|-> | Align | One Model | investments |One Vision | | |________________| | |____________________| | | -Standarize | | processes | _________________ | | | | Operating | -Simplify the | | Standardize/ | Processes - | business | | Simplify | One Approach | -> |________________| | -Create a culture | of excellence |
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The Exelon Way Opportunity Potential Savings Sources Opportunity Areas ---------------------------------------------- ----------------------------------------------- O&M -Centralized support functions [Slide shows a bar chart, the y-axis showing -EED consolidation 2006 Target in dollars denoted by heavy shading -Productivity, outsourcing and Benchmark Aspirational Level in dollars and process denoted by dashed lines, the x-axis shows -Nuclear corporate the source for savings (left to right: Supply restructuring Chain, CapEx, Balance Sheet, O&M, Total Opportunity).] Supply -Contract compliance Chain -Rapid repricing Supply Chain -Process improvement 2006 Target: $150 -Staffing levels Benchmark Aspirational Level: $200 -Inventory Difference: $50 CapEx -Effective corporate-wide CapEx prioritization and approval 2006 Target: $200 -Rationalize to depreciation Benchmark Aspirational Level: $350 plus growth Difference: $150 -Productivity, outsourcing and process Balance Sheet 2006 Target: $50 Benchmark Aspirational Level: $100 Difference: $50 Balance -Facilities Sheet -Monetization O&M -Portfolio management 2006 Target: $250 -Cash flow management Benchmark Aspirational Level: $550 -Facilities and equipment Difference: $300 Total Opportunity 2006 Target: $650 Benchmark Aspirational Level: $1,200 Difference: $550
[Exelon Logo] Positioned for Success -Well positioned for growth in depressed energy market o Low-cost generation portfolio o Large, stable retail customer base o No material trading or international exposure o Strong balance sheet o Positioned to deliver 5% annual earnings growth and commensurate dividend growth o without recovery in energy margins or growth in sales -Well positioned for upside when markets recover
[Exelon Logo] Valuation Measures ------------------------------------------------------------------------------------------------------------ P/E Earnings per Share Dividends Yield ------------------------------------------------------------------------------------------------------------ 2-Yr CAGR 2-Yr CAGR 5-Yr CAGR 2004E 2000-2002A 2002A-2004E 1997-2002A (X) (%) (%) (%) (%) ------------------------------------------------------------------------------------------------------------ Exelon 11.3 11.9 3.4 2.2 3.2 Entergy 12.8 10.5 3.6 -5.5 2.7 FPL Group 13.0 4.7 3.3 3.8 3.6 Dominion Res. 12.5 20.4 2.3 0 4.1 Southern 16.0 10.6 2.1 0.8 4.4 Cinergy 13.8 1.3 1.5 0.1 4.8 DTE Energy 11.3 7.4 1.0 0 4.7 Progress Energy 12.2 12.5 0.4 3.0 4.8 Duke Energy 13.6 -5.4 -13.1 0.2 5.7 Average 12.9 8.2 0.5* 0.5 4.2 ------------------------------------------------------------------------------------------------------------ * 2.2% CAGR excluding Duke Sources: Thomson First Call, Bloomberg Note: P/E and yield statistics as of 6/5/03 A=Actual; E= Estimate; CAGR = Compound annual growth rate