1. Korea Western Power Ratings Presentation July 2017
10/31/2019 4:32 AM
Korea Western Power Ratings Presentation July 2017
Good afternoon, my name is [Sun A, KIM], Team Head of Treasury Department at Korea Western Power.
Thank you for your time to visit us and I hope, by this presentation, you will have a better understanding of our credit profile.
Before we get started, let me briefly introduce our participants.
[Introduce other participants]
Confidential Presentation

2. Table of Contents Company Overview Industry & Regulatory Update
10/31/2019 4:32 AM
Table of Contents
Agenda
Company Overview
Industry & Regulatory Update
Operation Overview
Financial Management
Financial Forecast
Our presentation today is divided into five sections.
First of all, I will provide you an overview of our company.
Second, I will brief you on current industry and regulatory environment.
Then we will move onto the overview of our company’s operation.
The following section will be our financial performance and management.
And lastly, I will explain our financial forecast.

3. Company Overview Let me begin with an overview of our company.
10/31/2019 4:32 AM
Company Overview
Let me begin with an overview of our company.

4. One of the Most Important Gencos in Korea
10/31/2019 4:32 AM
One of the Most Important Gencos in Korea
Company Overview
KOWEPO has established sophisticated power generating facilities in Korea
As of March 2017, Coal, B.C. Oil, LNG and others account for 47.1%, 13% and 36.1% and 3.8% respectively in terms of generation capacity in operation
Generation Capacity by Type of Fuel
Location of Plant Complex
Coal
Metropolitan Area
LNG
BC Oil
5,050MW
Power Plant Region
Hydro
Solar
Fuel Cell
3,866.9MW
Wind
Seoincheon
Gunsan C/C (718.4MW)
Seoul and Gyeonggi Metropolitan Area
Pyeongtaek
Taean T/P
(5,050MW)
Seoincheon C/C (1,800MW)
Taean IGCC
Taean/Gunsan,/
Samryangjin/Sejong/
Youngam Solar,
Taean Hydro, etc.
(407.7MW)
Taean
Sejong City
1,400MW
Pyeongtaek T/P (1,400MW)
Pyeongtaek
C/C (1,348.5MW)
Gunsan
Samrangjin
This page shows the current status of our power generating facilities.
As of 1H of 2015, Coal, B.C. Oil, LNG and hydro and solar power account for 43%, 15.1%, 41.6%, and 0.3%, respectively.
As you can see from the map on the right, approximately 90% of our power generating facilities are located in Metropolitan area near Seoul City. This area accounts for approximately 40% of domestic electricity demand.
As such, the demand concentration from this area puts us in an advantageous position in terms of power sales as compared to other Gencos.
Hwasun
Total Generation Capacity 10,724.6MW
Youngam
___________________________
Note: T/P denotes “Thermal Power Plant”, C/C denotes “Combined Cycle.”
Source: Company data as of March 2017 1

5. Strong Market Position
10/31/2019 4:32 AM
Strong Market Position
Company Overview
KOWEPO boasts significant market share both in capacity and sales volume
Market Share by Generation Capacity
Market Share by Sales Volume
(As of 31 March, 2017, Unit: MW)
(Period: Jan-March, 2017, Unit GWh)
KOWEPO grabs 10% of total domestic generation capacity, and 10% of total domestic electricity sales volume as of June 2015.
Other Gencos except KHNP shows similar market shares to KOWEPO.
Total Generation Capacity 109,288MW
Total Electricity Sales 133,533GWh
___________________________
Source: Company data as of March 2017 2

6. Industry & Regulatory Update
10/31/2019 4:32 AM
Industry & Regulatory Update
In the coming section, I will update you on the current industry and regulatory environment.

7. Korea Electricity Consumption Trend
10/31/2019 4:32 AM
Korea Electricity Consumption Trend
Industry & Regulatory Update
Electricity Consumption & GDP Growth(1)
Power Sold by Segment (FY2016)(1)
Electricity Consumption Forecast(2)
(Unit: Thousand MW)
(Unit: Thousand GWh)
Avg. Expected Consumption Growth Rate: 2.1%
Let’s look into power consumption growth trend.
Power consumption has continued to rise at an average rate of 5% per annum from 2000 to 2014.
According to the “7th Electricity Supply and Demand Basic Plan” published by The Ministry of Trade, Industry and Energy in February 2013, power consumption is expected to grow at an average rate of 2.1% per annum from 2015 to 2029.
___________________________
Source:
KEPCO, The Monthly Report on Major Electric Power Statistics
The 7th Basic Plan of Long-term Electricity Supply and Demand, July 2015 by Ministry of Trade, Industry and Energy (MOTIE) 3

8. Government’s New Energy Policy
10/31/2019 4:32 AM
Government’s New Energy Policy
Proposed Energy U-Turn
Focus on Renewable Energy
The new administration of President Moon Jae-in focuses on natural gas and renewables, responding to public concerns over air pollution
and nuclear safety
While the new government’s energy roadmap is still being hashed out, the care for the environment will paly a central role in forming policy
The government hopes to boost gas-fired generation from about 18 percent now to 27 percent by 2030 and boost the use of renewables
from roughly 5 percent to 20 percent
KOWEPO’s Strategy
Renewable Energy 3020 Roadmap Overview
(Generation) Supply 20% of total electricity via renewable energy by 2030
(Generation Capacity) Secure 4,476MW of generating capacity and Investment total KRW8,049bn by 2030
Additional Construction of LNG Combined Cycle Power Plant
Plans to replace aging power plant with LNG CC power plant with same generation capacity
Shut Down Plan (7th Basic Plan)
Replacement (Plan)
Classification
Capacity (MW)
Exp. Shut Down Date
Capacity (MW)
Exp. Completion
LNG CC
Pyeongtaek 1CC
480
Dec’17
500
’23
Seoincheon CC
1,800
Dec’23
’23 (900MW)
’28 (900MW)
Heavy Oil
Pyeongtaek
1,400
Dec’24
’28
(Unit: MW, KRW bn)
’16
’17
’19
’21
’23
’25
‘27
‘30
Generating Capacity
655
716
1,429
2,290
2,610
3,499
3,894
4,476
Investment
1,486
1,591
2,988
4,325
5,200
6,164
6,706
8,049
Now I would like to brief you on the electricity pricing mechanism.
The price of electricity is determined under the “cost-based pool system”. Under this system, the price of electricity has two components, ‘energy adjusted price’ and ‘capacity payment’.
Capacity payment is the fee Gencos receive as a compensation for the construction of generation facilities. Capacity payment is determined annually and is paid to each generation company for the amount of available generation capacity.
Energy adjustment price compensates the Gencos for fuel costs which is the principal component of the variable cost in electricity generation. This allows all units generating electricity to be compensated for all fuel costs, plus margin.
The Adjusted Coefficient of System Marginal Price is determined by the Electricity Generation Cost Evaluation Committee every year and with the Adjusted Coefficient, we are able to pass 100% of the fuel costs to the electricity price, enabling KOWEPO to maintain solid financial performance.
In accordance with the revised Electric Utility Act in May 2014, Vesting Contract will be implemented.
Vesting Contract is a system that power plant companies pre-contract with vendors about price, supply quantity and period etc. under the government regulation. It made to reduce uncertainty of electricity market and to operate stable & effective electricity market.
Currently VC is implemented as a replacement of CBP thus we don’t expect a ripple effect on the electricity pricing.
The detailed implementation plan has been worked out by a task force and is still under discussion.
___________________________
Source: Company data, Ministry of Trade, Industry and Energy 4

9. 10/31/2019 4:32 AM
Operation Overview
In this section, I will explain our operating performance.

10. Power Plant Facilities in Operation
10/31/2019 4:32 AM
Power Plant Facilities in Operation
Operation Overview
KOWEPO operates 63 generation units with a combined generation capacity of 10,725MW
Type
Fuel Type
Number of Units
Capacity (MW)
Capacity Factor (%)
Taean
Thermal
Bituminous 9
5,050
81.4
Solar - 3
2.51
13.3
Small Hydro 1
2.2
16.7
IGCC
346.33
30.0
Pyeongtaek
BC Oil 4
1,400
18.2
0.46
11.6
Combined Cycle
LNG 8
1,348.5
32.5
Seoincheon 16
1,800
13.2
Fuel Cell
16.2
82.4
Gunsan
718.4
21.0
0.27
14.6
Samrangjin 2
15.0
Sejong City 5
5.01
14.5
Gyeonggi 7
2.42
Hwasun
Wind Power
22.2
Youngam
16.1
TOTAL 63
10,724.6
50.3
This table outlines our extensive power plant facilities in operation.
KOWEPO is currently operating 60 generation units at 7 different sites and generated about 9,306MW in total as of June 2015.
Taean plant works as the largest generator of our company. It is test-running IGCC.
Pyeongtaek has thermal and combined cycle power plants, while Seoincheon and Gunsan have combined cycle power plants, respectively.
The company also has renewable energy plants in Taean, Gunsan, Sejong City, and Gyoenggi. Yet they have small generation capacity.
As you can see, KOWEPO has extensive power generation facilities and broad experience in operation.
___________________________
Source: Company data as of March 2017 5

11. Major Suppliers of Coal
10/31/2019 4:32 AM
Cost Efficiency
KOWEPO has implemented a cost competitive strategy
Operation Overview
Fuel Cost
Coal
LNG
Making long-term supply contracts assure adequate supply of the raw materials
Hedging risks by adjusting proportion of long-term contracts with market volatility
Fuel Cost Composition
Major Suppliers of Coal
(1)
Let me discuss our cost efficiency on this slide.
As of June 2015, fuel costs accounted for approximately 80-90% of total production cost.
KOWEPO is actively focusing on fuel procurement strategy as fuel costs takes up the large portion of total production cost.
Currently 78% of coal and 100% of LNG are supplied through long-term contracts, which assures stable supply of raw materials.
___________________________
Source: Company data as of March 2017
Represents fuel costs other than that required to generate electricity, such as fuel required to start up the generating units 6

12. New Business – Domestic
10/31/2019 4:32 AM
New Business – Domestic
Operation Overview
Strategy to defend its strong market position and superb operating performance through both domestic and overseas plant constructions and projects
Power Plant
Type
Capacity
Construction Period
Remarks
New Plant
Taean #9, #10
Thermal
2,100MW
Oct ~ Jun. 2017
Largest unit capacity in Korea
Lowest fuel cost
Profit generation via utilizing state-of-the-art high-capacity generator
Facility using most economical coal
Taean IGCC
Integrated Gasification Combined Cycle (“IGCC”)
346.3MW
Nov ~ Aug. 2016
Clean energy source securing by utilizing Bituminous and meeting RPS standard
Obtained the know-how in planning and building 380MW-level IGCC
Taean, Pyeongtaek, Seoincheon
Solar
5.2MW
Nov ~ May. 2017
Follows new renewable energy plan
Jangheung
Wind Power
16MW
Aug ~ Jun. 2018
In line with low carbon, green growth policy driven by the Korean government
In line with KOWEPO’s plan in securing energy sources that meet RPS
Plans to install ESS regarding the wind plant to further gain RPS- compliant energy sources
In this slide, I would like to explain our expansion plan for new plant construction and business diversification in the domestic market.
The construction of Taean IGCC (Integrated Gasfication Combined Cycle) was started in November 2011 and will be completed in this year.
IGCC project is a part of the Government’s R&D project and will receive 128.8bn won of support from the Government.
We had a groundbreaking ceremony for Taean #9, #10 thermal plants in July 2012, and they expected to be completed by December After the completion, Taean plant is expected to be the largest thermal power plant in Korea.
___________________________
Source: Company data as of March 2017 7

13. New Business – Overseas
10/31/2019 4:32 AM
New Business – Overseas
Operation Overview
Strategy to defend its strong market position and superb operating performance through both domestic and overseas plant constructions and projects
Power Plant
Type
Capacity
Construction Period
Remarks
Equity Investment
Maharashtra, India
C/C
388MW
Fed ~ Jul. 2016
Consortium with PPIL Consortium: 40% from KOWEPO (Korea), 51% from PPIL (India), and 9% from minority shareholders
Build, Own, Operates and maintenance
Period for the business: 25 years after the completion
Xe-Pian Xe- Namnoy, Laos
Hydro
410MW
Nov ~ Feb. 2019
Consortium: 25% from KOWEPO (Korea), 26% from SK E&C (Korea), 25% from Ratchaburi (Thailand), 24% from LHSE (Laos)
Build, Own, Transfer (KOWEPO to be in charge of operation and maintenance)
Project Financing; Completed in November 2013
PPA contract with Thailand and Laos (Thailand/Laos power supply construction)
Undergoing construction (Rate of process: 75.15%)
Bylong, Australia
Mine
360MT/Y
Jan ~ Nov. 2019
Consortium: 10% from GENCOS (Korea), 90% from KEPCO (Korea)
Planning to acquire 7.8% stakes in 2017 and 10.2% stakes in consecutive order from 2018
KOWEPO Bylong founded in Dec. 2016
In this slide, I would like to explain our expansion plan for new plant construction and business diversification in the domestic market.
The construction of Taean IGCC (Integrated Gasfication Combined Cycle) was started in November 2011 and will be completed in this year.
IGCC project is a part of the Government’s R&D project and will receive 128.8bn won of support from the Government.
We had a groundbreaking ceremony for Taean #9, #10 thermal plants in July 2012, and they expected to be completed by December After the completion, Taean plant is expected to be the largest thermal power plant in Korea.
___________________________
Source: Company data as of March 2017 8

14. Capital Expenditure Plan
10/31/2019 4:32 AM
Capital Expenditure Plan
Operation Overview
Capital Expenditure Schedule
1,806
1,716
1,446
Total 1,020
Following the company’s development plan, here is our future investment plan to support the projects.
In 2015, KOWEPO has an investment plan of about 1.6 trillion won. In 2016, we have plan to invest 800bn won in 2016 as our construction plan is going to be completed around that period.
Due to KOWEPO’s new project plans, KOWEPO expects the capital expenditure to increase. Thus, KOWEPO plans to finance the necessary capital through the global capital markets.
As our CAPEX will decrease from 2015 to 2017, we expect our financial profile to improve going forward.
KOWEPO believes that the company can increase its market share through active investment in equipment and facilities and reduce the portion of high-cost facilities improving its financial results for next five year.
___________________________
Source: Company data as of March 2017 9

15. Asset Comprehensive Insurance
10/31/2019 4:32 AM
Insurance Coverage
Operation Overview
KOWEPO is fully insured on its facilities under operation and shipment/transportation of fuels and raw materials in the event of any unexpected accident and subsequent losses
Asset Comprehensive Insurance
Details
Insurance Type
Insurer
Insured Period ~
Insured Amount
KRW17,597 bn
Insured Target
Generation Facilities
Insurance on Cargo
Details
Insurance Type
Fuel and Equipment Facilities
Comprehensive Insurance on Cargo
Insurer
Insured Period ~
Insured Amount
KRW1,369 bn
Insured Target
Fuel and Equipments
This shows our insurance coverage.
KOWEPO is fully insured on its facilities under operation or construction and shipment and transportation of fuels and raw materials in the event of any unexpected accident and subsequent losses.
___________________________
Source: Company data as of March 2017
Note: KOWEPO did not insure against Erection All Risks (EAR) Insurance as the Company launched its commercial operation of IGCC #9 and #10 10

16. 10/31/2019 4:32 AM
Financial Management
Now, let me lead your through our financial status under our prudent financial policy.

17. Capital Structure Overview – 1Q 2017 Capital Structure Assets
10/31/2019 4:32 AM
Capital Structure
Financial Management
Overview – 1Q 2017
Capital Structure
Assets
KRW9,697 bn
Non-Current Assets / Total Assets Ratio : 87.8%
Liability
KRW5,672 bn
Total Debt: KRW4,787 bn
Total Liabilities / Total Equity: 140.9%
Shareholders
Equity
KRW4,019 bn
Wholly owned by KEPCO
Revenue
Revenue: KRW1,240 bn
Net Income: KRW180 bn
Net Income / Revenue: 14.5%
EBITDA
KRW412 bn
EBITDA / Revenue: 33.2%
This slide highlights our capital structure.
As of 1H of 2015, we had 8.7 trillion won in assets, 5.5 trillion won in liabilities, and 3.2 trillion won in shareholder’s equity.
As for the performance, we witnessed solid result with revenue of 2.2 trillion won and EBITDA of 424 billion won.
As you can see from the chart on the right side, we have been maintaining a sound capital structure as well.
___________________________
Source: Company data as of 1Q 2017
Note: K-IFRS accounting standards 11

18. Financial Profitability
10/31/2019 4:32 AM
Financial Profitability
Financial Management
Operating Income
Profit for the Period
EBITDA
EBITDA Margin
(KRW bn)
(%)
For the following two slides, I will touch upon our financial performance.
Despite the global economic downturn, our revenue maintained at a stable level and EBITDA remained at an elevated level compared to the last year.
As you can see from the graph at the left bottom, the level of interest coverage is remained at a stable level. This also applies to our leverage ratio which has shown stability over the past two years.
___________________________
Source: Financial Supervisory Service (as of financials based on K-IFRS)
Note:
EBITDA is defined as earnings before interest expense, income taxes and depreciation and amortization 12

19. EBITDA to Interest Expense(1) Debt to Capitalization(3)
10/31/2019 4:32 AM
Financial Stability
Financial Management
EBITDA to Interest Expense(1)
Debt(2) to EBITDA
Debt to Capitalization(3)
FFO(4) to Debt
(%)
(%)
For the following two slides, I will touch upon our financial performance.
Despite the global economic downturn, our revenue maintained at a stable level and EBITDA remained at an elevated level compared to the last year.
As you can see from the graph at the left bottom, the level of interest coverage is remained at a stable level. This also applies to our leverage ratio which has shown stability over the past two years.
___________________________
Source: Financial Supervisory Service (as of financials, based on K-IFRS)
Interest Expense includes capitalized interest expense
Debt = Borrowings + Debentures (Short Term & Long Term)
Capitalization = Debt + Total Equity
FFO = Funds From Operations 13

20. Financial Management Policy
10/31/2019 4:32 AM
Financial Management Policy
Financial Management
Overview of KOWEPO’s Financial Management Policy
Risk Management
To manage interest rate risks, KOWEPO borrows most of its debt under fixed rate
As of 1Q 2017, 99.9% of KOWEPO’s debt was fixed rate
Company holds quarterly committee meetings to manage its FX risk strategies
Basic strategy to hedge long-term risks through currency swap and limit short-term risk to below 50%
Dividend Policy
KOWEPO’s basic stance on dividend payout is to achieve a balance between meeting the shareholder’s expectations and maximizing corporate value
While the Company strives to provide stable dividends at a reasonable level, KOWEPO also considers the sustainability of financial soundness and liquidity, as well as retaining sufficient financial resources for continued investments of its facilities
In FY2016, KOWEPO’s payout ratio was 16.7%
Dividend Policy
(KRW bn)
2013
2014
2015
2016
Net income
106.8
151.7
294.6
401.9
Dividend
32.0
22.7
36.2
67.0
Total equity
158.9
166.6
Dividend yield
20.1%
14.3%
22.8%
40.2%
Payout ratio
30.0%
15.0%
12.3%
16.7%
To manage interest rate risks, KOWEPO borrows most of its debt under fixed rate and 99.9% of KOWEPO’s debt was fixed rate as of 3Q 2015.
Company holds quarterly committee meetings discuss and establish FX risk management strategies.
In FY2014, KOWEPO’s payout ratio was 15% and KOWEPO’s basic stance on dividend payout is to achieve a balance between meeting the shareholder’s expectations and maximizing corporate value.
While the Company strives to provide stable dividends at a reasonable level, KOWEPO also considers the sustainability of financial soundness and liquidity, as well as retaining sufficient financial resources for continued investments of its facilities.
___________________________
Source: Company data 14

21. Details on Credit Line Facilities – 1Q 2017
10/31/2019 4:32 AM
Details on Credit Line Facilities – 1Q 2017
Financial Management
Bank Overdraft Facilities
Bank
Amount
Remarks
Nonghyup Bank
KRW200 bn
Committed Line
Short-term KRW/FCY Credit Facilities
Bank
Amount
Remarks
Nongyhup Bank
KRW 10 bn
Kukmin Bank
KRW 30 bn
Shinhan Bank
Woori Bank
IBK
KRW 5 bn
BNP Paribas
USD 40 mn
Societe Generale
USD 50 mn
Standard Chartered Bank
HSBC
DBS Bank
USD 100 mn
Credit Agricole
Mizuho Corporate Bank
Deutsche Bank AG
USD 30 mn
Bank of Communications
Committed Line
Bank of Nova Scotia
USD 20 mn
KDB
USD 80 mn
Total KRW
KRW 85 bn
Total USD
USD 600 mn
As of 1H 2015, KOWEPO’s total overdraft facilities and short-term foreign credit facilities are 300 billion won and 948 million dollars, respectively.
KOWEPO has utilized 21 million dollars from its credit facilities and they are to be redeemed before the year end.
___________________________
Source: Company data as of 1Q 2017 15

22. Debt Profile Debt Maturity Profile(1) Local vs. Foreign Currency(1)(2)
10/31/2019 4:32 AM
Debt Profile
Financial Management
Debt Maturity Profile(1)
Local vs. Foreign Currency(1)(2)
(KRW billions)
Fixed vs. Floating Rate Debt(1)(2)
This is our debt profile.
As you can see from the left chart, although the amount of debt maturing from 2017 to 2019 is quite high, we are expected to complete most of our capital expenditures in construction by Therefore we expect to regain good casfhlow for debt repayment in 2016.
Our debt matrix by current shows that 58.9% are in local currency while the remaining 41.1% are in foreign currency.
To avoid the interest rate risk, we strategically maintain fixed rate funding. Currently 99.9% of our debt are in fixed rate, but we can be flexible depending on the market conditions..
___________________________
Source: Company data, as of 1Q 2017
Note:
Debt consists of the sum of debentures (excluding amortization of discount) and long-term borrowings (including current position)
Foreign currency debt portion is based on the net amount swapped into KRW 16

23. Financial Statements – Income Statement
10/31/2019 4:32 AM
Financial Statements – Income Statement
Financial Management
Income Statement
(Unit : KRW bn)
2014
2015
2016
1Q2016
1Q2017
Sales
4,844
4,224
4,180
1,250
1,240
Cost of Sales
4,558
3,653
3,487
870
943
Gross Profit
286
571
693
380
297
SG&A 77 82
104 22 25
Operating Profit
209
489
589
357
273
Other Operating Income
3.5
3.7 4 1
Other Operating Expense
0.4
0.6
0.05
0.1
Other Income
1.5
4.8 3 5
Financial Income 89
125 62 30
136
Financial Expense
151
193
135 47
175
Share in Loss of Joint Ventures and Associates
8.9
(13.2)
(4)
Income From Continuing Operations Before Income Tax
163
412
511
346
235
Income Tax Expense From Continuing Operations
112
118 79 55
Net Income From Continuing Operations
133
300
393
267
180
Net Income From Discontinued Operations -
Net Income (Loss)
The following three slides are financial statement for the past four years and 1H If you don’t have any specific question on these, I would like to move onto the next section.
___________________________
Source: Company Financial Report as of 1Q 2017
Note: Consolidated K-IFRS accounting standard 17

24. Financial Statements – Balance Sheet
10/31/2019 4:32 AM
Financial Statements – Balance Sheet
Financial Management
Balance Sheet
(Unit : KRW bn)
2014
2015
2016
1Q2016
1Q2017
Assets
Current Assets
994
985
1,175
1,032
1,180
Non-Current Assets
7,226
8,223
8,618
8,217
8,517
Total Assets
8,220
9,208
9,793
9,249
9,697
Liabilities
Current Liabilities
924
1,370
1,651
1,009
1,159
Non-Current Liabilities
4,088
4,352
4,219
4,535
4,513
Total Liabilities
5,012
5,722
5,870
5,544
5,672
Stockholder’s Equity
Capital Stock
1,192
1,273
Capital Surplus 42 49 57 40 46
Retained Earning
1,974
2,245
2,593
2,473
2,706
Total Stockholders’ Equity
3,208
3,486
3,923
3,705
4,025
Total Liabilities and Stockholders’ Equity
___________________________
Source: Company Financial Report as of 1Q 2017
Note: Consolidated K-IFRS accounting standard 18

25. Financial Statements – Cash Flow Statement
10/31/2019 4:32 AM
Financial Statements – Cash Flow Statement
Financial Management
Cash Flow Statement
(Unit : KRW bn)
2014
2015
2016
1Q2016
1Q2017
Cash Flows From Operating Activities
Net Income
133
300
393
267
180
Non-cash Income & Expenses
569
690
765
234
257
Changes in Assets and Liabilities
(43)
(220)
(125) 35
(28)
Other
(53)
(99)
(166)
(50)
Net Cash Provided by Operating Activities
606
671
867
493
359
Cash Flows from Investing Activities
Purchase of Fixed Assets
(1,788)
(1,582)
(656)
(132)
(169)
Others, Net 91 25
(55)
(2) 14
Net Cash Provided by Investing Activities
(1,697)
(1,557)
(711)
(134)
(155)
Cash Flows from Financing Activities
Cash Inflows
1,991
2,983
1,884
496
697
Cash Outflows
(1,336)
(2,066)
(1,899)
(753)
(795)
Net Cash Provided by Financing Activities
655
917
(15)
(257)
(98)
Cash and Cash Equivalent at End of Period 75
106
247
208
352
___________________________
Source: Company Financial Report as of 1Q 2017
Note: Consolidated K-IFRS accounting standard 19

26. 10/31/2019 4:32 AM
Financial Forecast
The last section will be our forecast on financial ratios and financial statements.

27. Financial Statements Forecast
Financial Forecast
Balance Sheet
(Unit : KRW bn)
2017
2018
2019
2020
Assets
10,059
10,373
11,242
12,395
Liabilities
5,986
5,866
6,408
7,138
Equity
4,073
4,507
4,834
5,257
Income Statement
(Unit : KRW bn)
2017
2018
2019
2020
Revenue
4,547
4,790
5,059
5,251
Operating Expense
4,070
4,294
4,412
4,437
- Depreciation & Amortization
573
620
644
665
Operating Income
477
496
647
814
Net Income
220
239
378
507
Here is our forecast on financial statements from 2015 to 2017.
This concludes our presentation today. Again, thank you very much for your time.
___________________________
Source: Company’s mid and long term financial management plan ( ), as of June 2017 20

28. Key Financial Indicator Forecast
Financial Forecast
Key Financial Indicator Outlook
(Unit : KRW bn)
2017
2018
2019
2020
Revenue
4,547
4,790
5,059
5,251
EBIT
455
474
686
894
Depreciation & Amortization
573
620
644
665
EBITDA
1,028
1,094
1,330
1,560
(Unit : %)
ROE
5.4%
5.3%
7.8%
9.7%
Return on Sales
4.8%
5.0%
7.5%
Debt / Equity
146.9%
130.2%
132.6%
135.8%
EBITDA Margin Ratio
22.6%
22.8%
26.3%
29.7%
Here are our outlook on key financial ratios from 2015 to 2017.
___________________________
Source: Company’s mid and long term financial management plan ( ), as of June 2017
Note: EBIT = Net Profit + Interest Expense + Corporate Tax
EBITDA = EBIT + Depreciation + Amortization
Debt = Financial liabilities
EBITDA Margin Ratio = EBITDA / Revenue 21

29. 10/31/2019 4:32 AM
Disclaimer
This presentation material is prepared by Korea Western Power (the “Company”) solely for your information only. All or any part of this presentation material may not be taken away, reproduced, redistributed, or retransmitted in any manner. You agree to be bound by the above condition by participating into this presentation. Any non- compliance may be against the related laws and requirements.
This presentation material does not constitute an offer to purchase or sell the related securities or forms the basis of, or be relied upon in connection with any contract, commitment or investment decision whatsoever.
This presentation material may contain forward-looking statements. These forward-looking statements are based on a number of assumptions about the future, some of which are beyond the Company’s control. The Company does not undertake any obligation to update any forward-looking statements to reflect events that occur or circumstances that arises after the date of this presentation. Potential investors should bear in mind that actual financial results may differ materially from the following forward-looking statements.
The information contained in this presentation material is not verified by any independent third party. No warranty is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information contained herein. The information contained in this presentation material should be interpreted under the prevailing circumstances. There is no update and nothing to be updated upon the presentation to reflect any significant change in the development. At no time does the Company or the related directors, management, employees, agents or advisers accept any liability for the information contained in this presentation material and accordingly accept any liability whatsoever for any loss howsoever arising from any use of this presentation material. 22