SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
EXELON CORPORATION
COMMONWEALTH EDISON COMPANY
PECO ENERGY COMPANY
EXELON GENERATION COMPANY, LLC
/S/ Robert S. Shapard
Robert S. Shapard
Executive Vice President and Chief Financial Officer
Exelon Corporation
February 26, 2003
EXHIBIT 99.1
Slide 1
[Exelon logo]
Exelon Corporation Investor Update
Bob Shapard, Executive VP and CFO
Linda Byus, VP Investor Relations
Texas Meetings
February 27-28, 2003
Slide 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 - Business Outlook and
the Challenges in Managing Our Business" in Exelon's 2002 Annual Report included
in current report on Form 8-K filed on 2/21/03, 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]
What Is Exelon?
- ----------------------------------------------------------------------------------------------------------------------
2001 Comparisons
---------------------------------------------------
U.S. Electric U.S. Companies
Exelon 2002 Exelon Companies
- ----------------------------------------------------------------------------------------------------------------------
Retail Electric Customers 5.1 million 5.1 million 1st -
- ----------------------------------------------------------------------------------------------------------------------
Nuclear Capacity 15.8K MWs* 15.4K MWs* 1st -
- ----------------------------------------------------------------------------------------------------------------------
U.S. Capacity Resources 43K MWs** 41K MWs** Among largest -
- ----------------------------------------------------------------------------------------------------------------------
Revenues $15 billion $15 billion 9th 135th
- ----------------------------------------------------------------------------------------------------------------------
Net Income $1.4 billion $1.4 billion 2nd 53rd
- ----------------------------------------------------------------------------------------------------------------------
Market Cap (as of 2/20/03) $16.1 billion - 3rd 100th
- ----------------------------------------------------------------------------------------------------------------------
*Includes AmerGen investment.
**Includes AmerGen and Sithe investments.
Slide 4
[Exelon logo]
Industry in Transition
o Regulatory restructuring
o Capacity overbuild
o Historically low wholesale
o Standard Market Initiatives
Slide 5
[Exelon logo]
Key Strengths
o Low cost generation portfolio
o Large stable customer base
o No material trading or international exposure
o Strong balance sheet / credit profile
o Earnings and dividend growth
Slide 6
[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 7
[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 savings beginning 2004
Slide 8
[Exelon logo]
2003 EPS Guidance: $4.80-$5.00
[This slide is a waterfall chart entitled "Expected EPS Drivers" 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 Refueling Outages) -
$0.07 (FAS 143) - $0.20 (Exelon New England / Sithe Energies) - $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-$4.99.
On the right side of the chart, the chart identifies additional "Risks and
Opportunities" that Exelon expects may affect EPS as follows:]
Cost Management Initiative Carryover +
Higher Market Prices +
Regulatory Settlement -
The Exelon Way +
Slide 9
[Exelon logo]
Positioned for Success
- - In a position to meet earnings and dividend growth goals in depressed
energy market
o Strong balance sheet
o No credit / liquidity issues
o Declining cost basis in generation
o The Exelon Way initiative expected to reduce costs and enhance free
cash flow
- - Well positioned for upside when markets recover
o Low cost generation fleet
o Stable customer and load mix
o Well placed generation in our regional markets
EXHIBIT 99.2
Page 1
[Exelon logo]
Income Statement
- ----------------------------------------------------------
($ millions except per share data) 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 - Diluted (millions) 325 322
EPS - Diluted ($) 4.44 4.43
One-Time Adjustments 0.39 0.06
EPS from Operations ($) 4.83 4.49
- ----------------------------------------------------------
Page 2
[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 6,237 6,880
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 3
[Exelon logo]
Cash Flow
- -----------------------------------------------------------------------------
($ millions) 2002 2001
- ------------ ---- ----
Net Cash Flows 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)
- -----------------------------------------------------------------------------
Net Cash Flows 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)
- -----------------------------------------------------------------------------
Net Cash Flows 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 4
[Exelon logo]
Cash Flow - 2003 Forecast
- --------------------------------------------------------------------------------
($ millions) 2003 Estimate*
- ------------ --------------
Net Income** 1,600
Pension Contribution (350)
Non-cash adjustments, Working Cap. changes, Decomm., etc. 2,050
- --------------------------------------------------------------------------------
Net Cash Flows from Operations 3,300
- --------------------------------------------------------------------------------
Cap Ex including Nuclear Fuel
ComEd (720)
PECO (270)
Genco (960)
Enterprises (30)
Corporate and Other (30)
- --------------------------------------------------------------------------------
Net Cash Flows Used in Investing Activities (2,010)
- --------------------------------------------------------------------------------
Transition Bond Payments (580)
Common Dividends (600)
Net Cash Flows Used in Financing Activities (1,180)
- --------------------------------------------------------------------------------
Increase in Cash 110
- --------------------------------------------------------------------------------
*Excludes impact of potential asset transactions
**Excludes cumulative effect of change in accounting principle (FAS 143).
Page 5
[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 6
[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 7
Stock Statistics
- ----------------------------------------------------------------------------------------------------------------------------------|
| Market Price Data | Earnings Per Share |
- ----------------------------------------------------------------------------------------------------------------------------------|
| Close 52-Week Mo. Chg. YTD Chg. | 2003E 2003/2002 2004E 2004/2003|
Company | 1/31/03 High Low % % | $ Chg. (%) $ Chg. (%) |
- ----------------------------------------------------------------------------------------------------------------------------------|
Exelon | 50.93 | 56.99 | 37.85 | -3.5 | -3.5 | 4.90 | 1.4 | 5.12 | 4.5 |
Entergy | 44.45 | 48.38 | 32.12 | -2.5 | -2.5 | 3.85 | 1.0 | 4.09 | 6.2 |
FirstEnergy | 31.20 | 39.12 | 24.85 | -5.4 | -5.4 | 3.26 | 15.6 | 3.56 | 9.2 |
FPL Group | 58.39 | 65.31 | 45.00 | -2.9 | -2.9 | 4.87 | 1.5 | 5.10 | 4.7 |
Progress Energy | 40.41 | 52.70 | 32.84 | -6.9 | -6.9 | 3.70 | -2.9 | 3.87 | 4.6 |
Southern Co. | 28.17 | 31.14 | 23.22 | -0.8 | -0.8 | 1.84 | -1.1 | 1.94 | 5.4 |
Peer Average | | | | -3.6 | -3.6 | 3.74 | 2.6 | 3.95 | 5.8 |
| | | | | | | | | |
Allegheny Energy* | 8.40 | 43.86 | 2.95 | 11.1 | 11.1 | 1.32 | 7.3 | 1.52 | 15.2 |
American Elec Pwr | 23.62 | 48.80 | 15.10 | -13.6 | -13.6 | 2.40 | -17.0 | 2.46 | 2.5 |
Cinergy | 31.70 | 37.19 | 25.40 | -6.0 | -6.0 | 2.62 | -2.2 | 2.75 | 5.0 |
Dominion Resources | 54.19 | 67.06 | 35.40 | -1.3 | -1.3 | 4.72 | -2.3 | 4.97 | 5.3 |
DTE Energy | 41.92 | 49.50 | 33.05 | -9.7 | -9.7 | 3.98 | 3.9 | 4.13 | 3.8 |
Duke Energy | 17.03 | 39.60 | 15.77 | -12.9 | -12.9 | 1.43 | -23.9 | 1.47 | 2.8 |
PPL Resources | 35.00 | 39.95 | 26.00 | 0.9 | 0.9 | 3.61 | 2.0 | 3.77 | 4.4 |
PS Enterprise Group | 35.28 | 47.25 | 20.00 | 9.9 | 9.9 | 3.76 | 0.0 | 3.82 | 1.6 |
TXU | 18.35 | 57.05 | 10.10 | -1.8 | -1.8 | 2.02 | -16.5 | 2.08 | 3.0 |
Xcel Energy | 11.02 | 26.71 | 5.12 | 0.2 | 0.2 | 1.27 | -11.2 | 1.24 | -2.4 |
Elec. Avg. (16 companies)| | | | -2.8 | -2.8 | 3.10 | -2.8 | 3.24 | 4.7 |
| | | | | | | | | |
S&P Electrics | 113.12 | 154.04 | 91.21 | -3.7 | -3.7 | NA | NA | NA | NA |
Philadelphia Util. Avg. | 246.93 | 352.63 | 202.82 | -4.2 | -4.2 | NA | NA | NA | NA |
S&P 500 | 855.70 | 1173.84 | 768.58 | -2.7 | -2.7 | 44.13 | 13.6 | 49.98 | 13.3 |
- ----------------------------------------------------------------------------------------------------------------------------------|
- ---------------------------------------------------------------------------------------|
| P/E Dividend |
- ---------------------------------------------------------------------------------------|
| 2003E 2004E Rate Yield Payout |
Company | X X $ % % |
- ---------------------------------------------------------------------------------------|
Exelon | 10.4 | 9.9 | 1.84 | 3.6 | 37.6 |
Entergy | 11.5 | 10.9 | 1.40 | 3.1 | 36.4 |
FirstEnergy | 9.6 | 8.8 | 1.50 | 4.8 | 46.0 |
FPL Group | 12.0 | 11.4 | 2.32 | 4.0 | 47.6 |
Progress Energy | 10.9 | 10.4 | 2.24 | 5.5 | 60.5 |
Southern Co. | 15.3 | 14.5 | 1.37 | 4.9 | 74.5 |
Peer Average | 11.6 | 11.0 | 1.78 | 4.3 | 50.4 |
| | | | | |
Allegheny Energy* | 6.4 | 5.5 | 0.00 | 0.0 | 0.0 |
American Elec Pwr | 9.8 | 9.6 | 2.40 | 10.2 | 100.0 |
Cinergy | 12.1 | 11.5 | 1.84 | 5.8 | 70.2 |
Dominion Resources | 11.5 | 10.9 | 2.58 | 4.8 | 54.7 |
DTE Energy | 10.5 | 10.2 | 2.06 | 4.9 | 51.8 |
Duke Energy | 11.9 | 11.6 | 1.10 | 6.5 | 76.9 |
PPL Resources | 9.7 | 9.3 | 1.44 | 4.1 | 39.9 |
PS Enterprise Group | 9.4 | 9.2 | 2.16 | 6.1 | 57.4 |
TXU | 9.1 | 8.8 | 0.50 | 2.7 | 24.8 |
Xcel Energy | 8.7 | 8.9 | 0.75 | 6.8 | 59.1 |
Elec. Avg. (16 companies) | 10.5 | 10.1 | 1.59 | 4.9 | 52.3 |
| | | | | |
S&P Electrics | NA | NA | NA | NA | NA |
Philadelphia Util. Avg. | NA | NA | NA | NA | NA |
S&P 500 | 19.4 | 17.1 | 16.06 | 1.9 | 36.4 |
- ---------------------------------------------------------------------------------------|
*Allegheny Energy's 2003/2002 EPS change based on 2002 consensus estimate.
(Source: Thomson Financial)
[This page includes a bar graph entitled "2003 P/Es Relative to S&P 500". The
vertical axis is marked to start from 0.0 at the bottom and to increase by 0.2
per demarcation to 1.0 at the top; the horizontal axis is marked with the names
of the companies listed in the following table; and the data for each company is
displayed using bars:]
31-Dec 31-Jan
EXC 0.60 0.54
ETR 0.66 0.60
FE 0.56 0.49
FPL 0.68 0.62
PGN 0.63 0.56
SO 0.86 0.79
Peer Avg 0.66 0.60
AYE 0.24 0.33
AEP 0.53 0.51
CIN 0.70 0.62
D 0.64 0.59
DTE 0.64 0.54
DUK 0.59 0.61
PPL 0.53 0.50
PEG 0.47 0.48
TXU 0.50 0.47
XEL 0.45 0.45
Elec Avg 0.58 0.55
