WEB NEWS Comments & Business Outlook
Consolidated Statements of Comprehensive Income (Loss)
For the years ended December 31, 2012, 2013 and 2014
Note 2012 2013 2014
In millions of won, except per share
Sales
4,35,45,47
Sales of goods
￦ 46,906,587 51,132,803 53,706,828
Sales of construction services
20
1,856,045 2,253,083 2,965,185
Sales of other services
357,877 326,619 451,013
49,120,509 53,712,505 57,123,026
Cost of sales
13,25,43,47
Cost of sales of goods
(46,293,591 ) (47,983,987 ) (46,509,555 )
Cost of sales of construction services
(1,695,218 ) (2,159,023 ) (2,752,610 )
Cost of sales of other services
(470,453 ) (452,628 ) (500,787 )
(48,459,262 ) (50,595,638 ) (49,762,952 )
Gross profit
661,247 3,116,867 7,360,074
Selling and administrative expenses
25,36,43,47
(1,780,168 ) (1,923,192 ) (1,924,366 )
Other income
37
675,000 725,457 754,186
Other expenses
37
(74,567 ) (99,811 ) (88,220 )
Other gains (losses), net
38
(1,781,835 ) 128,514 107,396
Operating profit (loss)
4
(2,300,323 ) 1,947,835 6,209,070
Finance income
5,11,39
1,128,357 629,542 885,290
Finance expenses
5,11,40
(3,068,321 ) (2,931,622 ) (3,140,038 )
Equity method income (loss) of associates and joint ventures
4,17
Share in income of associates and joint ventures
205,987 170,399 319,506
Gain on disposal of investments in associates and joint ventures
— 1,725 87,521
Share in loss of associates and joint ventures
(20,127 ) (140,984 ) (78,493 )
Loss on disposal of investments in associates and joint ventures
(162 ) (45,291 ) (1,271 )
Impairment loss on investments in associates and joint ventures
(8,757 ) (28,092 ) (52,279 )
176,941 (42,243 ) 274,984
Profit (loss) before income tax
(4,063,346 ) (396,488 ) 4,229,306
Income tax (expense) benefit
41
985,377 570,794 (1,430,339 )
Profit (loss) for the period
￦ (3,077,969 ) 174,306 2,798,967
(Continued)
F-9
KOREA ELECTRIC POWER CORPORATION AND SUBSIDIARIES
Consolidated Statements of Comprehensive Income (Loss)—(Continued)
For the years ended December 31, 2012, 2013 and 2014
Note 2012 2013 2014
In millions of won, except per share
Other comprehensive income (loss)
5,11,25,31,34
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of defined benefit liability, net of tax
25,31 ￦ (41,310 ) 132,457 (108,430 )
Share in other comprehensive income (loss) of associates and joint ventures, net of tax
31
(846 ) 7,671 (1,899 )
Items that are or may be reclassified subsequently to profit or loss:
Net change in the unrealized fair value of available-for-sale financial assets, net of tax
34
2,245 86,570 (97,251 )
Net change in the unrealized fair value of derivatives using cash flow hedge accounting, net of tax
5,11,34
(63,850 ) 29,332 (84,793 )
Foreign currency translation of foreign operations, net of tax
34
(121,892 ) (108,625 ) (70,576 )
Share in other comprehensive income (loss) of associates and joint ventures, net of tax
34
(96,060 ) 38,366 5,228
Other comprehensive income (loss), net of tax
(321,713 ) 185,771 (357,721 )
Total comprehensive income (loss) for the period
￦ (3,399,682 ) 360,077 2,441,246
Profit or loss attributable to:
Owners of the Company
44 ￦ (3,166,616 ) 60,011 2,686,873
Non-controlling interests
88,647 114,295 112,094
￦ (3,077,969 ) 174,306 2,798,967
Total comprehensive income (loss) attributable to:
Owners of the Company
￦ (3,447,949 ) 245,384 2,335,827
Non-controlling interests
48,267 114,693 105,419
￦ (3,399,682 ) 360,077 2,441,246
Earnings (loss) per share
44
Basic and diluted earnings (loss) per share
￦ (5,083 ) 96 4,290
Management Discussion and Analysis
In 2014, our consolidated sales, which is principally derived from the sale of electric power, increased by 6.3% to Won 57,123 billion from Won 53,713 billion in 2013, reflecting primarily a 4.7% increase in our average electricity tariff rates in 2014 compared to 2013 and a 0.58% increase in the volume of electricity sold from 474,849 gigawatt hours in 2013 to 477,592 gigawatt hours in 2014. For a discussion of the increase in our electricity tariff rates which are regulated by the Government, see Item 4B. “Business Overview—Sales and Customers—Electricity Rates.” The overall increase in the volume of electricity sold was primarily attributable to a 2.7% increase in the volume of electricity sold to the industrial sector, which represents the largest segment of electricity consumption in Korea, from 265,373 gigawatt hours in 2013 to 272,552 gigawatt hours in 2014, which was partially offset by a 1.4% decrease in the volume of electricity sold to the commercial sector from 102,196 gigawatt hours in 2013 to 100,761 gigawatt hours in 2014 and a 2.1% decrease in the volume of
electricity sold to the residential sector from 65,815 gigawatt hours in 2013 to 64,457 gigawatt hours in 2014. The increase in the volume of electricity sold to the industrial sector was primarily due to the general increase in demand for electricity in this sector in Korea largely as a result of continued export-led growth of the Korean economy, which involved an increased industrial output and greater capacity utilization in industrial plants. The decreases in the volume of electricity sold to the commercial and residential sectors were largely due to weather conditions, including cooler summer and warmer winter in 2014 compared to 2013.
As a cumulative result of the above factors, our consolidated profit increased significantly to Won 2,799 billion in 2014 from Won 174 billion in 2013. Our consolidated net profit margin also increased significantly to 4.9% in 2014 from 0.3% in 2013. Our profit attributable to the owners of the company was Won 2,687 billion in 2014 from Won 60 billion attributable to the owners of the company in 2013.
Comments & Business Outlook
Consolidated Statements of Comprehensive Income (Loss)
For the years ended December 31, 2011, 2012 and 2013
Note 2011 2012 2013
In millions of won, except per share
Sales
4,35,44,46
Sales of goods
￦ 41,397,469 46,906,587 51,132,803
Sales of construction services
20
1,455,132 1,856,045 2,253,083
Sales of other services
322,616 357,877 326,619
43,175,217 49,120,509 53,712,505
Cost of sales
13,25,42,46
Cost of sales of goods
(40,926,543 ) (46,293,591 ) (47,983,987 )
Cost of sales of construction services
(1,405,302 ) (1,695,218 ) (2,159,023 )
Cost of sales of other services
(393,049 ) (470,453 ) (452,628 )
(42,724,894 ) (48,459,262 ) (50,595,638 )
Gross profit
450,323 661,247 3,116,867
Selling and administrative expenses
25,36,42,46
(1,751,696 ) (1,780,168 ) (1,923,192 )
Other income
37
598,302 675,000 725,457
Other expenses
37
(147,595 ) (74,567 ) (99,811 )
Other gains (losses), net
38
165,703 (1,781,835 ) 128,514
Operating profit (loss)
4
(684,963 ) (2,300,323 ) 1,947,835
Finance income
5,11,39
607,592 1,128,357 629,542
Finance expenses
5,11,40
(2,518,850 ) (3,068,321 ) (2,931,622 )
Equity method income (loss) of associates and joint ventures
17
Share in income of associates and joint ventures
162,513 205,987 170,399
Gains on disposal of investments in associates and joint ventures
3,147 — 1,725
Share in loss of associates and joint ventures
(42,115 ) (20,127 ) (140,984 )
Losses on disposal of investments in associates and joint ventures
(450 ) (162 ) (45,291 )
Impairment losses on investments in associates and joint ventures
— (8,757 ) (28,092 )
123,095 176,941 (42,243 )
Loss before income taxes
(2,473,126 ) (4,063,346 ) (396,488 )
Income tax (expense) benefit
41
(819,871 ) 985,377 570,794
Profit (loss) for the period
￦ (3,292,997 ) (3,077,969 ) 174,306
Management Discussion and Analysis
2013 Compared to 2012
In 2013, our consolidated sales, which is principally derived from the sale of electric power, increased by 9.3% to Won 53,713 billion from Won 49,121 billion in 2012, reflecting primarily a 7.3% overall increase in our average electricity tariff rates in 2013 (as a result of a 4.0% increase effective January 14, 2013 and a 5.4% increase effective November 21, 2013) and a 1.8% increase in the volume of electricity sold from 466,593 gigawatt hours in 2012 to 474,849 gigawatt hours in 2013. The overall increase in the volume of electricity sold was primarily attributable to a 2.8% increase in the volume of electricity sold to the industrial sector, which represents the largest segment of electricity consumption in Korea, from 258,102 gigawatt hours in 2012 to 265,373 gigawatt hours in 2013, and, to a lesser extent, a 0.6% increase in the volume of electricity sold to the commercial sector from 101,593 gigawatt hours in 2012 to 102,196 gigawatt hours in 2013 and a 0.5% increase in the volume of electricity sold to the residential sector, from 65,484 gigawatt hours in 2012 to 65,815 gigawatt hours in 2013. The increase in the volume of electricity sold to the industrial sector was primarily due to the general increase in demand for electricity in this sector in Korea largely as a result of continued export-led growth of the Korean economy, which involved an increased industrial output and greater capacity utilization in industrial plants. For a discussion of the increase in our electricity tariff rates, see Item 4B. “Business Overview—Sales and Customers—Electricity Rates.”
As a cumulative result of the above factors, we had consolidated profit of Won 174 billion in 2013, compared to consolidated loss of Won 3,078 billion in 2012. Our consolidated net profit margin was 0.3% in 2013 compared to consolidated net loss margin of 6.3% in 2012. Our profit attributable to the owners of the company was Won 60 billion in 2013, compared to loss of Won 3,167 billion attributable to the owners of the company in 2012.
