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?
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US Electric US
2002 Companies Companies
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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
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<FN>
* Includes AmerGen investment
** Operating capacity at 12/31/02; includes AmerGen and Sithe investments
Sources: Company reports, Thomson Financial, Bloomberg
</FN>
[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
|
[Exelon Logo]
The Exelon Way Opportunity Potential
Savings Sources Opportunity Areas
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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
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P/E Earnings per Share Dividends Yield
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2-Yr CAGR 2-Yr CAGR 5-Yr CAGR
2004E 2000-2002A 2002A-2004E 1997-2002A
(X) (%) (%) (%) (%)
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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
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<FN>
* 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
</FN>