Korea Electric Power Corporation Q1 FY2025 earnings call

• Electricity sales: Volume in Q1 was 141 terawatt hours, down 0.5% due to sluggish exports affecting industrial sales. Full-year 2025 sales are projected to decline slightly because of lower economic growth and a slowdown in the manufacturing industry. • Fuel prices: In Q1 2025, determinist coal price was around $105.3 per ton, LNG based on JKM was approximately KRW1.06 million per ton, and system marginal price was around KRW115.6 per kilowatt hour. • Generation mix: Nuclear generation mix increased due to the introduction of new plants and higher utilization. Coal generation mix decreased due to lower utilization, and LNG generation mix also declined slightly from decreased capacity and higher baseload generation. For 2025, nuclear utilization is expected to be in the mid-80% range, coal in the early-50% range, and LNG in the mid-20% range. • RPS costs: Q1 2025 consolidated RPS cost was KRW782.6 billion, and separate RPS cost was KRW978.3 billion. • Funding: Consolidated borrowing at Q1 2025 was KRW133.2 trillion, and separate borrowing was KRW87.67 trillion.

Consolidated revenue for Q1 2025 was KRW24.2 trillion, up 4%. Electricity sales revenue accounted for KRW23.2 trillion, making up approximately 95.87% of total revenue, an increase of 4.7%. Other revenue, including overseas business income, was KRW1.1 trillion, down 10.2%. Consolidated operating profit stood at KRW3.75 trillion, and net profit for the period was KRW2.36 trillion. Electricity sales volume in Q1 reached 141 terawatt hours, experiencing a 0.5% decline due to reduced industrial sales from sluggish exports.

• Full-year 2025 electricity sales are projected to decline slightly due to the impact of lower economic growth and a slowdown in the manufacturing industry. • For 2025, expected utilization rates are: nuclear in the mid-80% range, coal in the early-50% range, and LNG in the mid-20% range. • Fuel cost outlook: 2025 expected coal price is KRW171,000 per ton, LNG is KRW1.06 million per ton, and oil is KRW1030 per liter.

• Fluctuations in fuel prices could impact costs. • Economic slowdown may further affect electricity sales volumes. • Transmission limitations in the east coast area could restrict coal generation.

Q: What drove the increase in non-operating profit on a separate basis?

A: The increase in non-operating profit on a separate basis was due to an increase in dividend profit of KRW1.7 trillion, leading to a subsidiary dividend line item of KRW1.8 trillion.

Q: How much has the coal settlement coefficient changed year-on-year?

A: There has been a slight year-on-year increase in the coal settlement coefficient, but no reassessment for the full year has been done yet.

Q: Why did coal generation volume decline?

A: Coal generation volume declined because of nuclear power plant operation and transmission capacity limitations.

Q: What is the fuel cost outlook?

A: There is no official guideline for the fuel cost outlook for the year, but using institutional data, it is forecasted that coal will be KRW171,000 per ton, LNG KRW1.06 million per ton, and oil KRW1030 per liter in 2025.

Q: Are there plans for further borrowing?

A: Will answer offline.

Q: Can the dividend profit number be sustained going forward?

A: The dividend payout ratio will be determined based on subsidiaries' financial status in January next year and considering feedback from GENCOs.

Q: When will transmission limitations in the east coast area be resolved?

A: Connections are scheduled to be completed by 2025 and 2026, but the exact completion date is yet to be determined.

Q: What is the unit fuel cost for Q1?

A: Coal unit fuel cost in Q1 was KRW190,000 per ton, LNG was KRW1.1 billion per ton, and oil was KRW1,100 per liter.

Q: What was the nuclear power plant fuel cost in Q1?

A: The nuclear power plant fuel cost in Q1 was KRW490 billion.

Q: What about nuclear power plant utilization?

A: Will share details offline.

Q: What is the depreciation cost for generation?

A: The depreciation cost for six GENCOs in Q1 was KRW1.8 trillion.

Q: What is the coal utilization rate?

A: Will share details offline.

Q: What is the estimate for 2025 HMC?

A: The total comprehensive cost will be disclosed after the government review process.

Q: What about the climate environment cost?

A: Need to negotiate with the government, and there is no plan on when the climate environment cost will be adjusted.

Q: What is the expected volume for CHPS 2025?

A: Will get back to you after discussing with the relevant team.

Q: What is the outlook for coal individual consumption tax?

A: The government has not determined if the discount on coal individual consumption tax, which is reduced to KRW39 per kilowatt until end of June, will be extended.

Q: What is the interest cost on a separate basis?

A: The interest cost on a separate basis is down KRW56.2 billion to KRW685.5 billion year-on-year.

Q: What are the financial profit and cost on a separate basis?

A: On a separate basis, financial profit was KRW1.96 trillion, financial cost was KRW730 billion, and dividend profit was KRW1.8 trillion.

Q: What are the RPS cost and power purchase details?

A: Q1 consolidated RPS cost was KRW782.6 billion, separate RPS cost was KRW978.3 billion; out of 144.7 terawatt hours, 6 terawatt was purchased from PPA and 84.3 terawatt from IPP.

Q: What is the CapEx plan for T&D?

A: Currently developing the 11th basic plan for electricity power supply and demand, which will be available in May, and T&D plan will be developed alongside it.