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Korea Western Power Ratings Presentation
[June 2014]
Confidential Presentation
Table of Contents Agenda
1. Company Overview
2. Industry & Regulatory Update
3. Operation Overview
4. Financial Management
5. Financial Forecast
Company Overview
Korea Western Power (KOWEPO) has maintained a strong credit profile
Company Overview
Strong Credit Profile
Cancelled privatization plans for Gencos
Market-oriented public enterprise
Application of the cost-reflecting pricing
mechanism
Increasing Capacity Factor
Expanding Capacity Factor with 75.5% in
1Q2014
Long-term and medium-term raw material
contracts
Continuous cash flows from operations
- EBITDA: KRW196bn (1Q 2014)
Balanced and flexible debt portfolio : Well-
diversified maturity profile
Strong interest coverage (EBITDA / Net
Interest Expense: 5.80x)
Constantly growing power consumption
11.2% of the sales volume share for domestic
power market in 1Q2014
Strengthening competitiveness through
domestic & overseas investment
Solid Financial Profile
Industry Dynamics & Market
Position
Supportive Regulatory Environment
Cost-Effective Operations
4
KOWEPO has established sophisticated power generating facilities in Korea
Company Overview
One of the Most Important Gencos in Korea
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Coal B.C. Oil LNG
Taean T/P
(4,000MW)
Pyeongtaek T/P
(1,400MW)
4,000MW
Seoincheon C/C
(1,800MW)
Pyeongtaek
C/C (480MW)
Gunsan
C/C (718.4MW)
3,509.3MW Coal
LNG BC Oil
1,400MW Taean
Pyeongtaek
Gunsan
Seoincheon
Seoul and Gyeonggi Metropolitan Area
Samrangjin
Others: Taean, Gunsan,
Samryangjin, Sejong
Solar, Taean Hydro,
Youngam Solar
(510.9 MW)
Metropolitan Area
Power Plant Region
Sejong City
Hydro
Solar
Generation Capacity by Type of Fuel Location of Plant Complex
___________________________ Note: T/P denotes “Thermal Power Plant”, C/C denotes “Combined Cycle.” Source: Company data as of 1Q 2014
As of March 2014, Coal, B.C. Oil, LNG and others account for 44.9%, 15.7% and 33.7% and 5.7% respectively in terms of generation
capacity in operation
Youngam
5
KOWEPO boasts significant market share both in capacity and sales volume
Company Overview
Strong Market Position
Market Share by Generation Capacity Market Share by Sales Volume
(MW)
Total Generation Capacity
86,975MW
(GWh)
Total Electricity Sales
125,593GWh ___________________________ Source: FSS, DART Filing as of 1Q 2014
KOWEPO, 14,014, 11.2%
KOSEP, 15,249, 12.1%
KOMIPO, 14,297, 11.4%
KOSPO, 16,117, 12.8%
EWP, 12,902, 10.3%
KHNP, 37,848, 30.1%
Others, 15,174, 12.1%
6
KOWEPO, 8,909, 10.2%
KOSEP, 8,227, 9.5%
KOMIPO, 8,934, 10.3%
KOSPO, 9,200, 10.6%
EWP, 9,343, 10.7%
KHNP, 26,039, 29.9%
Others, 16,323, 18.8%
Industry & Regulatory Update
Domestic power generation sector is expected to enjoy healthy demand growth and
government support
Industry & Regulatory Update
Strong Electricity Demand and Government Support
History of Power Consumption
___________________________ Source: “Electricity Supply and Demand Basic Plan #6”, MOTIE as of 2013.
Electricity Demand Forecast
Power consumption has continued to rise on the back of strong economic growth at an average rate of 5.6% per annum from 2000 to
2013
Power consumption is expected to grow at an average rate of 3.3% per annum from 2014 to 2027
The country imposed rolling blackouts as recently as September 2011, due to numerous maintenance issues which led to insufficient
peak load; this highlights the slim margin between electricity demand and supply
South Korea will have to develop more coal- and gas-fired generating capacity despite the strong expected growth in clean energy;
planned clean energy projects are insufficient to alleviate this shortage problem, and the government will have to increase capacity to
avoid an electricity shortfall
Commentary
240 258 278 294 312 332 349 369 385 394 434
455 467 485
0
100
200
300
400
500
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Twh
505 526
547 567
590 611
631 652
672 693
713 733
752 771
400
500
600
700
800
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Twh CAGR 5.6% CAGR 3.3%
8
Electricity Pricing Mechanism Industry & Regulatory Update
Application of The Adjusted Coefficient of System Marginal Price (“SMP”)
KOWEPO can pass through 100% of its fuel cost through the energy price
Electricity Generation Cost Evaluation Committee annually determines The Adjusted Coefficient
Adjusted Coefficient was readjusted with increase in December 2013 and effective from January 2014
Introduction of “The Adjusted Coefficient of SMP” will motivate Gencos to construct base load power plants and lead to fair
competition among Gencos. It will increase the efficiency of the power market by stimulating cost reduction
Price type Price Remarks
Capacity Payment
(CP) KRW 7.69/kwh
Standard price is KRW 7.69/kwh
CP can be adjusted in accordance with region, season and time
(’12: KRW 7.73/kwh ’13: KRW 7.80/kwh ‘14: KRW 7.69/kwh)
Energy Adjustment Price (Energy Price) [Max {(SMP-Fuel Cost), 0} x
The Adjusted Coefficient + Fuel Cost]
Adjusted Coefficient (effective from January 2014)
Nuclear (light-water reactor) : 0.3170 (←0.0450)
Nuclear (heavy-water reactor): 0.3298 (←0.0450)
Coal : 0.1565 (←0.0001)
B.C. Oil / Gas: 0.3281 (←0.0001)
Others/General : 0.2610 (←0.0001)
KOWEPO continues to enjoy 100% fuel cost pass through pricing mechanism
___________________________ Source: Company information, as of 1Q 2014.
Power Price Comparison
9
Current Implementation Stage of Vesting Contract (VC)
The Electric Utility Act involving the government-approved Vesting Contract(V.C.) was passed in April 2013. However, the detailed
implementation plan is still being worked out by a task force under the supervision of the Korea Power Exchange
The details of VC, such as contract amount, contract price and renewal interval, are still under discussion
Operation Overview
KOWEPO operates 57 generation units with a combined generation capacity of 8,909MW
Operation Overview
Power Plant Facilities in Operation
___________________________ Source: Company data as of 1Q 2014.
Type Fuel Type Number of Units Capacity (MW) Capacity Factor (%)
Taean
Thermal Bituminous 8 4,000 100.9
Solar - 2 0.67 12.4
Small Hydro - 1 2.20 21.8
Pyeongtaek Thermal BC Oil 4 1,400 28.9
Combined Cycle LNG 7 964 15.4
Seoincheon Combined Cycle LNG 16 1,800 81.1
Gunsan Combined Cycle LNG 3 718.40 93.3
Solar - 1 0.26 13.9
Samrangjin Solar - 2 3 13.8
Sejong City Solar - 5 4.93 12.2
Yongam Solar - 1 13.30 14.5
Gyeonggi Solar - 7 2.50 13.3
TOTAL 57 8,909 75.5
11
1,514 1,433
509
136
0
500
1000
1500
2000
Indonesia Australia North America Russia
Kiloton
Operation Overview
Cost Efficiency
Long-term supply contracts assure adequate supply of the raw materials
Hedging risks by adjusting proportion of long-term contracts with market
volatility
___________________________ Source: Company data as of 1Q 2014. 1. Represents fuel costs other than that required to generate electricity, such as fuel required to start up the generating units 2. Canada and US
Fuel Cost Composition
Fuel Cost
Major Suppliers of Coal
Total 3,592 kilotons
Coal LNG
KOWEPO has implemented a cost competitive strategy
(1)
Short Term 9%
Long Term 91%
0.0%
Long Term 100.0
%
50 50 54 55
148
204 223 215
129 143
159 176
0
50
100
150
200
250
2011 2012 2013 1Q2014
KRW / kWh
Coal Heavy Oil Combined(LNG)
12
Coal 27.5%
LNG 64.2%
B.C. Oil 8.4%
(2)
70
90
110
130
150
Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14
Operation Overview
Fuel Cost Forecast
___________________________ Source: Company information.
Coal
Favorable outlook for KOWEPO’s fuel cost
Coal price has come down recently due to slowdown in Chinese economy and robust
production level in major coal producing countries including Australia and Indonesia
Coal price may rebound slightly due to seasonal factors, but it is expected to move in a
limited range due to weakening fundamentals such as supply and demand
An Individual consumption tax for bituminous coal is included in the total amount of
purchases cost of electricity. Therefore, it does not have a direct impact on the
company’s revenue.
(FOB US$/ton) $143.13
(’11.1
$86.64
(’10.8
$73.08
(’14.3)
(6,080 kcal/kg net calorific value)
Recent Price Trend
Commentary
13
LNG
LNG price is expected to decline due to the increased utilization of
shale gas in the future
As KOWEPO purchases LNG from KOGAS based on the cost-based
pool(CBP) system which is determined by the oil price and FX rate,
the effect of LNG price movement on KOWEPO’s operation is
expected to be minimal
Recent Price Trend
Commentary
400
500
600
700
800
900
1,000
1,100
1,200
1,300
Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14
(KRW '000) 1,208
('12.6)
717
('10.11)
Strategy to defend its strong market position and superb operating performance through
both domestic and overseas plant constructions and projects
Operation Overview
New Business – Domestic & Overseas
Power Plant Type Capacity Construction Period Remarks
New Plant
Taean #9, #10 Thermal 2,100MW Oct. 2012
~Dec. 2016
Largest unit capacity in Korea
Lowest fuel cost
Taean IGCC Integrated Gasification
Combined Cycle (“IGCC”) 380MW
Nov. 2011
~Nov. 2015 Clean energy source securing by utilizing Bituminous and meeting RPS standard
Pyung-taek 2nd Combined Cycle 946.5MW July. 2012
~Oct. 2014
Emergency power plant to prepare exponential increase in demand in summer of 2013
(GT construction completed in July 2013)
Constructing high efficiency eco-friendly LNG plant for maximizing the rate of return
Equity Investment
Garolim Tidal 520MW Nov 2014
~Feb. 2021
Consortium with POSCO E&C, Daewoo E&C, Lotte E&C
KOWEPO to be in charge of construction management, operation and maintenance
World’s largest tidal plant
Dongdu-cheon Combined Cycle 1,880MW Jun. 2012
~Dec. 2014
Consortium with Samsung E&C, Hyundai Development Company
KOWEPO to be in charge of construction management
___________________________ Source: Company data s of 1Q 2014.
14
Domestic
Overseas
Power Plant Type Capacity Remarks
Equity Investment
Maharashtra, India C/C 388MW Consortium with PPIL (construction started in January 2012 / expected to complete in October 2014)
Build, Own, Operates and maintenance
Xe-Namnoi, Laos Hydro 410MW
Consortium with SK E&C, Ratchaburi (Thailand), LHSE (Laos)
KOWEPO to be in charge of operation and maintenance
Financing completed in November 2013 and started construction
Financial Management
Capital Expenditure Plan
1,770.9
1,180.0
508.6
179.4
299.9
236.9
228.7
234.9
70.6
40.1
13.0
14.0
2,141.4
428.4
750.3
1,457.0
0
500
1,000
1,500
2,000
2,500
3,000
2014 2015 2016 2017
KRW billions
Expansion Maintenance Others
Capital Expenditure Schedule
___________________________ Source: Company information, as of 1Q 2014
15
Operation Overview
Insurance Coverage
KOWEPO is fully insured on its facilities under operation or construction and shipment/transportation of
fuels and raw materials in the event of any unexpected accident and subsequent losses
___________________________ Source: Company data as of 1Q 2014.
Asset Comprehensive Insurance
Details
Insurance Type Asset Comprehensive Insurance
Insurer
Insured Period 2013.04.01 ~ 2014.05.31
Insured Amount KRW11,440 bn
Insured Target Generation Facilities
Insurance on Cargo
Details
Insurance Type Fuel and Equipment Facilities Comprehensive
Insurance on Cargo
Insurer
Insured Period 2014.02.01 ~ 2015.01.31
Insured Amount KRW2,013 bn
Insured Target Fuel and Equipments
Erection All Risks (EAR) Insurance
Details
Insurance Type EAR Insurance on Pyungtaek 2nd EAR Insurance on Taean IGCC EAR Insurance on Taean #9, #10
Insurer
Insured Period 2012.09.28 ~ 2014.12.31 2013.01.01 ~ 2015.11.30 2013.05.01 ~ 2016.12.31
Insured Amount KRW580 bn KRW841 bn KRW1,635 bn
Insured Target Operational and Final Acceptance Test
Generation Facilities
Operational and Final Acceptance Test
Generation Facilities
Operational and Final Acceptance Test
Generation Facilities
16
Financial Management
5,840
7,154 7,293
3,222 3,141 3,161
2,618
4,1324,013
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2012 2013 1Q 2014
(KRW bn)
Total Assets Total Shareholders' Equity Total Liability
Financial Management
Capital Structure
___________________________ Source: Company data as of 1Q 2014. Note: K-IFRS accounting standards.
Capital Structure
Assets
KRW7,293 bn
Non-Current Assets / Total
Assets Ratio : 82.2%
Liability KRW4,132 bn
Shareholders
Equity
KRW3,161 bn
Wholly owned by KEPCO
Revenue KRW1,521 bn
EBITDA KRW196 bn
Net Income: KRW51 bn
Overview – 1Q 2014
18
3.1x 2.0x
6.1x
2.9x 4.3x
7.2x
15.6x
21.1x
0.0x
4.0x
8.0x
12.0x
16.0x
20.0x
24.0x
2012 2013 1Q 2013 1Q 2014
EBIT / Gross Interest Expense Debt / EBITDA
Financial Management
Financial Performance
Revenue
Interest Coverage
EBITDA
Leverage
___________________________ Source: Company filing as of 1Q 2014. Note: 1. Debt consists of the sum of debentures (net of discount) and long-term borrowings (including current position) and short-term borrowing 2. Equity equals total shareholder’s equity 3. EBITDA is defined as earnings before interest expense, income taxes and depreciation and amortization
5,967 5,761
1,487 1,521
0
2,000
4,000
6,000
8,000
2012 2013 1Q 2013 1Q 2014
(KRW billions)
603 565
177 196
0
200
400
600
800
2012 2013 1Q 2013 1Q 2014
(KRW billions)
55.7%
99.4%
60.0%
99.3%
30.7%
43.6% 32.2%
43.1%
0%
20%
40%
60%
80%
100%
2012 2013 1Q 2013 1Q 2014
Debt / Equity Debt / Capital
19
(X) (%)
5.8
12.6
8.7
6.1
9.1
0
4
8
12
16
KOWEPO KOSEP KOMIPO KOSPO EWP
Financial Management
Financial Performance (Cont’d)
EBITDA(1) / Revenue Debt(2) / Equity(3) EBITDA(1) / Net Interest Expense
___________________________ Source: FSS, Dart Filings as of 1Q 2014 Note: 1. EBITDA is defined as earnings before interest expense, income taxes and depreciation and amortization 2. Debt consists of the sum of debentures (net of discount) and long-term borrowings (including current position) and short-term borrowing 3. Equity equals total shareholder’s equity
20
12.9
30.3
12.3
8.8
17.3
0
4
8
12
16
20
24
28
32
KOWEPO KOSEP KOMIPO KOSPO EWP
99.3
93.5
86.8
99.8
91.1
80.0
90.0
100.0
110.0
KOWEPO KOSEP KOMIPO KOSPO EWP
(%) (X) (%)
Industry & Regulatory Update
KOWEPO’s Measures on 4-Year Deleveraging Plan
___________________________ Source: Company information.as of 1Q 2014 Note: Debt Ratio = Total Liabilities / Total Shareholder’s Equity
21
In accordance with the Government’s deleveraging plan on quasi-sovereign corporations,
KOWEPO has established its debt reduction policy to reduce its debt ratio from 170% to
155% by 2017 through project adjustment, asset sales and a tight expense control policy Guideline
Reduce over KRW1.5 tn of debt by 2017 (305% of KRW5 tn which is the increased debt amount from 2012 to 2017)
Self-Effort
KOWEPO’s target self-effort ratio of 155% in 2017 will enable the company to exceed the guideline by KRW5.5bn by the end of 2017
KOWEPO’s Plans to Downscale Debt
81%
128%
160%
174% 171% 170%
153%166%
160%
138%149% 148%
155%
2012 2013 2014 2015 2016 2017
Outlook Self-effort Guideline
Type 2014 2015 2016 2017
Debt Amount
Outlook 5,555.6 6,587.0 7,076.1 7,750.4
Guideline 4,674.3 5,396.3 5,738.6 6,210.7
Self-efforts 5,167.3 6,016.8 6,185.0 6,205.2
Financial Management
Financial Management Policy
Overview of KOWEPO’s Financial Management Policy
Dividend Policy
Risk Management
To manage interest rate risks, KOWEPO borrows most of its debt under fixed rate
As of 1Q 2014, 99.9% of KOWEPO’s debt was fixed rate
Company holds quarterly committee meetings to manage its FX risk strategies
Basic strategy to hedge long-term risks through currency swap and limit short-term risk to below 50%
Dividend Policy
KOWEPO’s basic stance on dividend payout is to achieve a balance between meeting the shareholder’s expectations and maximizing corporate
value
While the Company strives to provide stable dividends at a reasonable level, KOWEPO also considers the sustainability of financial soundness and
liquidity, as well as retaining sufficient financial resources for continued investments of its facilities
In FY2013, KOWEPO’s payout ratio was 30%
2010 2011 2012 2013
Net income 246.3 44.8 118.3 106.8
Dividend 73.9 31.4 59.2 32.0
Total equity 176.0 158.9 158.9 158.9
Dividend yield 42.0% 19.8% 37.3% 20.1%
Payout ratio 30% 70% 50% 30%
(KRW bn)
___________________________ Source: Company data.
22
Financial Management
Details on Credit Line Facilities – 1Q 2014
Bank Amount Remarks
NACF KRW100 bn Committed Line
KEB KRW100 bn Committed Line
Bank Overdraft Facilities
Bank Amount Remarks
KEB KRW84 bn
Shinhan KRW100 bn
Bill Acceptance Facilities
Bank Amount Remarks
KEB USD18 mn
RBS USD130 mn
BNP Paribas USD60 mn
SC First Bank USD50 mn
Shinhan USD30 mn
HSBC USD100 mn
Mizuho Corporate Bank USD100 mn
Deutsche Bank USD100 mn
Bank of Communications USD100 mn Committed Line
Bank of Nova Scotia USD50 mn
KDB USD80 mn
Short-term FCY Credit Facilities
___________________________ Source: Company data as of 1Q 2014.
23
80.3100.4
404.2
570.4
897.2
237.1
881.2
0
100
200
300
400
500
600
700
800
900
1,000
2014 2015 2016 2017 2018 2019 2020~
Financial Management
Debt Profile
Debt Maturity Profile Local vs. Foreign Currency
Fixed vs. Floating Rate Debt
___________________________ Source: Bloomberg data as of 1Q 2014 Note: 1. Debt consists of the sum of debentures (excluding amortization of discount) and long-term borrowings (including current position) 2. Foreign currency debt portion is based on the net amount swapped into KRW.
Foreign
(KRW 1,487.3bn)
46.9%
Local
(KRW 1,683.4bn)
53.1%
Floating
(KRW 3.4bn) 0.1%
Fixed
(KRW 3,167.3bn)
99.9%
24
(1) (1), (2)
(1)
Financial Management
Financial Statements – Income Statement
___________________________ Source: Company information. Note: Consolidated K-IFRS accounting standard.
25
Income Statement
(Unit : KRW bn) 2010 2011 2012 2013 1Q2013 1Q2014
Sales 4,572 5,208 5,967 5761 1,487 1,521
Cost of Sales 4,277 5,030 5,717 5,576 1,383 1,428
Gross Profit 295 178 251 185 104 93
SG&A 39 55 60 65 15 10
Operating Profit 256 123 190 120 90 83
Other Operating Income 4.4 5.0 3.6 3.1 0.8 1.1
Other Operating Expense 0.9 10.3 1.1 1.4 0.5 0.1
Other Income 15 2 2.6 10.4 (3) 4
Financial Income 47 13 75 35 29 23
Financial Expense 81 64 114 94 44 43
Share in Loss of Joint Ventures and Associates (2.5) (1.5) (4.9) 1.4 0.7 (0.6)
Income From Continuing Operations Before Income Tax 239 67 151 75 73 68
Income Tax Expense From Continuing Operations 55 25 46 (20) 16 18
Net Income From Continuing Operations 185 42 105 95 58 50
Net Income From Discontinued Operations 34 - - - - -
Net Income (Loss) 218 42 105 95 58 50
Financial Management
Financial Statements – Balance Sheet
___________________________ Source: Company information. Note: Consolidated K-IFRS accounting standard.
26
Balance Sheet
(Unit : KRW bn) 2010 2011 2012 2013 1Q2013 1Q2014
Assets
Current Assets 1,348 1,182 1,280 1,343 1,331 1,295
Non-Current Assets 4,040 4,105 4,560 5,811 4,667 5,998
Total Assets 5,388 5,287 5,840 7,154 5,998 7,293
Liabilities
Current Liabilities 995 938 797 684 900 894
Non-Current Liabilities 1,137 1,397 1,821 3,329 1,878 3,238
Total Liabilities 2,132 2,335 2,618 4,013 2,778 4,132
Stockholder’s Equity
Capital Stock 1,443 1,192 1,192 1,192 1,192 1,192
Capital Surplus 22 3 201 85 204 88
Retained Earning 1,791 1,757 1,829 1,864 1,825 1,881
Total Stockholders’ Equity 3,256 2,952 3,222 3,141 3,221 3,161
Total Liabilities and Stockholders’ Equity 5,388 5,287 5,840 7,154 5,999 7,293
Financial Management
Financial Statements – Cash Flow Statement
___________________________ Source: Company information. Note: Consolidated K-IFRS accounting standard.
27
Cash Flow Statement
(Unit : KRW bn) 2010 2011 2012 2013 1Q2013 1Q2014
Cash Flows From Operating Activities
Net Income 218 42 105 95 58 50
Non-cash Income & Expenses 546 478 498 487 138 171
Changes in Assets and Liabilities (52) (167) (50) (134) (139) 84
Other (88) (76) (39) 18 25 51
Net Cash Provided by Operating Activities 624 277 514 375 40 299
Cash Flows from Investing Activities
Purchase of Fixed Assets (506) (452) (791) (1,606) (189) (320)
Others, Net (12) 11 (60) 20 8 11
Net Cash Provided by Investing Activities (518) (441) (851) (1,586) (181) (309)
Cash Flows from Financing Activities
Cash Inflows 968 721 1,269 2,064 108 -
Cash Outflows (1,061) (422) (808) (753) (1) (2)
Net Cash Provided by Financing Activities (93) 299 461 1,311 107 (2)
Cash and Cash Equivalent at End of Period 153 285 409 503 374 491
Financial Forecast
Key Financial Indicator Forecast
Key Financial Indicator Outlook
(Unit : KRW bn) 2014 2015 2016 2017
Revenue 6,031 5,993 6,067 7,026
EBIT 255 392 550 558
Depreciation & Amortization 405 461 533 656
EBITDA 642 802 1,020 1,143
(Unit : %) 2014 2015 2016 2017
ROE 4.15% 6.16% 8.11% 6.53%
Return on Sales 2.32% 3.73% 5.17% 3.72%
Debt / Equity 153.1% 165.8% 159.8% 155.0%
EBITDA Margin Ratio 10.6% 13.4% 16.8% 16.3%
___________________________ Source: Company information. Note: EBIT = Net Profit + Interest Expense + Corporate Tax EBITDA = EBIT + Depreciation + Amortization Debt = Total liabilities EBITDA Margin Ratio = EBITDA / Revenue
29
Financial Forecast
Financial Statements Forecast
Balance Sheet
(Unit : KRW bn) 2014 2015 2016 2017
Assets 8,542 9,645 10,057 10,209
Liabilities 5,167 6,017 6,185 6,205
Equity 3,375 3,628 3,872 4,004
___________________________ Note: Forecast is based on 2014-2020 mid to long term financial projections (consolidated basis).
30
Financial Forecast
Income Statement
(Unit : KRW bn) 2014 2015 2016 2017
Revenue 6,031 5,994 6,067 7,026
SG&A 636 713 816 981
Depreciation & Amortization 405 461 533 656
Net Income 140 223 314 261
Disclaimer
This presentation material is prepared by Korea Western Power (the “Company”) solely for your information only. All or any part of this presentation material may not be
taken away, reproduced, redistributed, or retransmitted in any manner. You agree to be bound by the above condition by participating into this presentation. Any non-
compliance may be against the related laws and requirements.
This presentation material does not constitute an offer to purchase or sell the related securities or forms the basis of, or be relied upon in connection with any contract,
commitment or investment decision whatsoever.
This presentation material may contain forward-looking statements. These forward-looking statements are based on a number of assumptions about the future, some of
which are beyond the Company’s control. The Company does not undertake any obligation to update any forward-looking statements to reflect events that occur or
circumstances that arises after the date of this presentation. Potential investors should bear in mind that actual financial results may differ materially from the following
forward-looking statements.
The information contained in this presentation material is not verified by any independent third party. No warranty is made as to, and no reliance should be placed on,
the fairness, accuracy, completeness or correctness of the information contained herein. The information contained in this presentation material should be interpreted
under the prevailing circumstances. There is no update and nothing to be updated upon the presentation to reflect any significant change in the development. At no
time does the Company or the related directors, management, employees, agents or advisers accept any liability for the information contained in this presentation
material and accordingly accept any liability whatsoever for any loss howsoever arising from any use of this presentation material.
31
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