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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
March 13, 2003
(Date of earliest event reported)
EXHIBIT 99.1 Slide 1 [Exelon logo] Exelon Corporation Positioned for Success John W. Rowe Chairman, President and CEO Morgan Stanley Global Electricity & Energy Conference, New York City March 13, 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 - 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? - ----------------------------------------------------------------------------- 2002 - ----------------------------------------------------------------------------- U.S. Electric Exelon Companies - ----------------------------------------------------------------------------- Retail Electric Customers 5.1 million 1st - ----------------------------------------------------------------------------- Nuclear Capacity 15.8K MWs* 1st - ----------------------------------------------------------------------------- U.S. Capacity Resources 42.7K MWs** Among largest - ----------------------------------------------------------------------------- Revenues $15.0 billion 2nd - ----------------------------------------------------------------------------- Net Income $1.4 billion 1st - ----------------------------------------------------------------------------- Market Cap (as of 3/6/03) $16.0 billion 3rd - ----------------------------------------------------------------------------- *Includes AmerGen investment. **Includes AmerGen and Sithe investments. Note: Data based on results reported through 3/6/03. Slide 4 [Exelon logo] Just Being Big Is Not Enough o Integrated delivery and generation operations o World-class nuclear operations o Constructive regulatory relationships o Critical mass Slide 5 [Exelon logo] Accomplishments - Creating Real Value Since Exelon was created in 2000 o Provided average annual growth of 12% in operating EPS 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 o Ongoing regulatory progress in Illinois and Pennsylvania Slide 6 [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 7 [Exelon logo] Opportunities and Challenges for 2003 o Enterprises (rationalize investment) o Exelon New England plants (operate, integrate and optimize) o Sithe Energies investment (buy, sell, restructure) o Variable gas and wholesale market prices o The Exelon Way o Far-reaching Illinois regulatory agreement Slide 8 [Exelon logo] Power Team Strategy in Variable Markets o Optimize value of generation supply portfolio o Reduce earnings risk and volatility o Prepared to capture benefit of long-term price recovery Slide 9 [Exelon logo] Far-reaching Illinois Regulatory Agreement If approved would: 1. Constructively conclude ComEd Residential Delivery Services rate case 2. Modify calculation of CTC revenue for shopping customers 3. Facilitate extension of full-requirements PPA between ComEd and Generation through 2006 4. Facilitate continued collection of decommissioning charge revenue through 2006 5. Support Provider of Last Resort (POLR) provisions 6. Provide funding for energy-related programs in Illinois Slide 10 Positioned for Success - - Well positioned for growth 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] 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 + Economic/Political Environment - The Exelon Way +