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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
February 11, 2003
(Date of earliest event reported)
EXHIBIT 99.1 Slide 1 [Exelon logo] Exelon Corporation Investor Update John Rowe, Chairman and CEO Bob Shapard, Executive VP and CFO New York City February 11, 2003Slide 2 [Exelon logo] Forward-Looking Statements This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained herein. The forward-looking statements herein include statements about future financial and operating results of Exelon. Economic, business, competitive and/or regulatory factors affecting Exelon's businesses generally could cause actual results to differ materially from those described herein. For a discussion of the factors that could cause actual results to differ materially, please see Exelon's filings with the Securities and Exchange Commission, particularly those factors discussed in "Management's Discussion and Analysis of Financial Condition and Results of Operations - Outlook" in Exelon's 2001 Annual Report, those discussed in "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Exelon Generation Company's Registration Statement on Form S-4, Reg. No. 333-85496, those discussed in "Risk Factors" in PECO Energy Company's Registration Statement on Form S-3, Reg. No. 333-99361, and those discussed in "Risk Factors" in Commonwealth Edison Company's Registration Statement on Form S-3, Reg. No. 333-99363. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Exelon does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this presentation. Slide 3 [Exelon logo] One Company, One Vision Exelon strives to build exceptional value - by becoming the best and most consistently profitable electricity and gas company in the United States. To succeed, we must.... - -LIVE UP TO OUR COMMITMENTS - -PERFORM AT WORLD-CLASS LEVELS - -INVEST IN OUR CONSOLIDATING INDUSTRY Slide 4 [Exelon logo] Live Up To Our Commitments o To Our Customers o To Our Employees o To Our Investors Slide 5 [Exelon logo] Perform At World-Class Levels o Pursue greater productivity, quality and innovation o Understand the relationships among our businesses and optimize the whole o Promote and implement policies that build effective markets o Adapt rapidly to changing markets, politics, economics and technology o Maximize the earnings and cash flow from our assets and businesses Slide 6 [Exelon logo] Invest in our consolidating industry o Develop strategies based on experience o Implement systems and best practices o Prioritize acquisition opportunities o Return earnings to shareholders absent investment opportunities Slide 7 [Exelon logo] Opportunities and Challenges for 2003 o Enterprises (rationalize investment) o Illinois regulatory environment (Liberty Audit, POLR, new state leadership) o Exelon New England plants (operate, integrate and optimize) o Sithe Energies investment (buy, sell, restructure) o AmerGen investment (buy, sell, maintain) o The Exelon Way Slide 8 [Exelon logo] 2003 EPS Guidance: $4.80-$5.00 [This slide is a waterfall chart entitled "Expected EPS Drivers" that starts with "2002 Actual" EPS of $4.44, adds a net EPS gain of $0.39 from "AT&T Wireless Sale/SFAS 142/Severance", and illustrates that Exelon expects the following drivers to add or subtract from EPS, as indicated, to reach $4.94-$4.99: $4.44 (2002 Actual) + $0.39 (AT&T Wireless Sale/SFAS 142/Severance) - $0.08 (Weather) + $0.25 (Midwest Gen) + $0.11 (Fewer Nuclear Outages) - $0.07 (FAS 143) - $0.20 (Sithe) - $0.24 (Pension/Other Post-Retirement Benefit Costs) + $0.16 (Enterprises Breakeven) + $0.13 (Interest Savings) + $0.05-$0.10 (Delivery Sales Growth) = $4.94-$4.99. On the right side of the chart, the chart identifies additional "Risks and Opportunities" that Exelon expects may affect EPS as follows:] Cost Management Initiative Carryover + Higher Market Prices + Regulatory Settlement - The Exelon Way +
EXHIBIT 99.2 Page 1 [Exelon logo] Income Statement - ------------------------------------ ---------- ---------- ($ millions) 2002 2001 Revenues 14,955 14,918 Revenue Net Fuel 9,693 9,828 EBIT 3,679 3,503 Net Income 1,440 1,428 Avg. Shares (millions) 325 322 EPS ($) 4.44 4.43 One-Time Adjustments 0.39 0.06 EPS from Operations ($) 4.83 4.49 - ------------------------------------ ---------- ----------Page 2 [Exelon logo] Cash Flow - ------------------------------------------------- ---------- ---------- ($ millions) 2002 2001 Cash from Operations 3,614 3,615 Capital Expenditures (2,150) (2,088) Acquisitions (445) (30) Proceeds - Nuclear Decomm. Trust 1,612 1,624 Investment - Nuclear Decomm. Trust (1,824) (1,863) Other 269 (35) - ----------------------------------------------------------------------- Cash Used in Investing (2,538) (2,392) - ----------------------------------------------------------------------- Issuance of Long-Term Debt 1,223 2,270 Retirement of Long-Term Debt (2,134) (1,860) Change in Short-Term Debt 321 (1,013) Common Dividends Paid (563) (583) Other 61 (78) - ----------------------------------------------------------------------- Cash Used in Financing (1,092) (1,264) - ----------------------------------------------------------------------- Change in Cash and Cash Equiv. (16) (41) Cash and Cash Equiv. - Beginning 485 526 Cash and Cash Equiv. - Ending 469 485 - ------------------------------------------------- ---------- ---------- Page 3 [Exelon logo] Balance Sheet - ------------------------------------------- ----------------- ---------------- ($ millions) 2002 2001 Total Long-Term Debt 13,127 12,879 Notes Payable 681 360 Notes Payable - Related Party 534 - Long-Term Debt Due within 1 Year 1,402 1,406 Total Debt 15,744 14,645 Transition Bonds Included in Total Debt 6,296 6,962 Preferred Securities of Subs. 595 613 Total Shareholders' Equity 7,742 8,102 Total Capital 24,081 23,360 ROE 18.2% 18.6% Total Debt/Total Capital 65% 63% Total Debt/Total Cap. ex Trans. Bonds 53% 47% - ------------------------------------------- ----------------- ---------------- Page 4 [Exelon logo] Overview of Generation Assets and Investments Our generation assets and investments at 1/1/03 consist of the following: Type of Capacity Capacity (MW) Owned Generation Assets (1) Nuclear ...................................................... 14,547 Fossil ....................................................... 8,210 Hydro ........................................................ 1,584 ------ 24,341 Long-Term Contracts ............................................. 13,900 AmerGen (2) ..................................................... 1,241 Sithe (2) ....................................................... 659 ------ Available Resources ............................................. 40,141 Under Construction or in Advanced Development (1) ............... 2,536 ------ Total Resources .................................... 42,677 ------ (1)Based on Generation's ownership, includes Exelon New England plants. (2)Based on Generation's ownership. Page 5 [Exelon logo] The Exelon Way Exelon will continue to find ways to "Live Up To Our Commitments" while "Performing at World-Class Levels" o Process Improvement o Capital and Operating Efficiencies o Revenue Enhancements o Cost Control that will position us to "Invest In Our Consolidating Industry." Page 6 [Exelon logo] The Exelon Way Definition -> As Is Analysis -> To Be Design -> Implement -> Track Results An Exelon approach to create value and improve competitive position: o Pursue change at all levels across Exelon o Changes will be deeper and longer term than recent successes in Cost Management Initiative o Will involve participation for all levels Goal: $300 to $600 million annually in cash beginning 2004