ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — FY2011 Earnings Presentation
17 slides from ORLEN Spolka Akcyjna's earnings presentation, Mar 29, 2012
Slide 1: PKN ORLEN consolidated financial results for FY 2011
PKN ORLEN consolidated financial results for FY 2011 Sławomir Jędrzejczyk, CFO Rafał Warpechowski, Executive Director, Planning and Reporting Dariusz Grębosz, Director, Investor Relations 29 March 2012 1
Slide 2: Agenda
Agenda Impairment of assets - IAS 36 Dividend Obligatory inventories Macroeconomic environment 2
Slide 3: IAS 36 Impairment of assets
IAS 36 „Impairment of assets” Impairment of assets The Group assesses at the end of each reporting period whether there is any objective indicator that a financial asset or group of financial assets is impaired. IAS 36 The assesement is based on following indicators: external – based on market trend
Slide 4: Indicators of impairment of assets in 2011
Indicators of impairment of assets in 2011 Worsening of current macroeconomy and growth prospects due to global turmoil Macro slowdown in economy growth ratio higher competition and lower fuels consumption dynamics Growing pressure on refining and petrochemical margins Margins demand barrier due to
Slide 5: ORLEN Capital Group – impairments of fixed assets in 2011
ORLEN Capital Group – impairments of fixed assets in 2011 Consolidated financial statements 2011 2011 PLN m Paramo RPA Ventus (non-audited) Anwil others (audited) (Unipetrol) (Unipetrol) (Orlen Lietuva) Revenues 106 973 106 973 EBIT, of which: 3 254 -76 -602 -456 -14 -41 2 066 Refining 2 219 -76 -41
Slide 6: PKN ORLEN S.A. – impairments on fixed assets in 2011
PKN ORLEN S.A. – impairments on fixed assets in 2011 Unconsolidated financial statements 2011 impairments carried out after 4q11 2011 PLN m (non-audited) publication (audited) Revenues 79 037 79 037 EBIT 3 178 -4 3 174 Financial activity 775 -1 553 -777 Net profit 3 271 -1881* 1 386 Shares 10 605 -1
Slide 7: Impairments of assets - summary
Impairments of assets - summary Impairments of assets carried out in 2011 reflects worsening of current macroeconomic Macro situation and weaker growth prospects caused by another global economic turmoil. Impairments of assets concerned refining part of Paramo, business lines PVC in Spolana and Asse
Slide 8: Agenda
Agenda Impairment of assets - IAS 36 Dividend Obligatory inventories Macroeconomic environment 8
Slide 9: Recommendation concerning the distribution of PKN ORLEN's profit to reserve capital
Recommendation concerning the distribution of PKN ORLEN’s profit to reserve capital Dividend policy Considerations Free Cash Flow to Equity (FCFE) as a basis for calculation of dividend level. The dividend payout ratio agreed at the minimum level of 50% FCFE. Calculation of Free Cash Flow to Equity
Slide 10: Agenda
Agenda Impairment of assets - IAS 36 Dividend Obligatory inventories Macroeconomic environment 10
Slide 11: Working capital release due to sales of crude oil inventories
Working capital release due to sales of crude oil inventories Sales of crude inventories to Lambourn Sp. z o.o. (Deutsche Bank) First tranche 0,5 mt of crude oil for ca. USD 280 m (ca. PLN 800 m). The crude oil price was established 1q2010 according to market quotations. Repurchase in 2q2011. Sales
Slide 12: Agenda
Agenda Impairment of assets - IAS 36 Dividend Obligatory inventories Macroeconomic environment 12
Slide 13: Macro environment in 2012
Macro environment in 2012 10 PKN ORLEN Group model refining margin 2011 average 2012 2012 average 2011 8 6 4 3,1 USD/bbl 2 2,1 USD/bbl 0 -2 January February March April May June July August September October November December 5 Ural/Brent differential 2011 average 2012 2012 average 2011 4 3 2 1,7 US
Slide 14: Macro environment in 1Q 2012
Macro environment in 1Q 2012 Crude oil price increase Increase in total of refining margin and U/B diff Average Brent Crude Oil price, USD/bbl Model refining margin and Ural/Brent differential, USD/bbl differential margin + 9 USD/bbl + 1,0 USD/bbl 117 113 109 118 4,4 4,3 4,1 105 3,4 3,1 1,0 2,9 2,9
Slide 15: Dictionary
Dictionary PKN ORLEN model refining margin = revenues (93,5% Products = 36% Gasoline + 43% Diesel + 14,5% HHO) - costs (100% input: crude oil and other raw materials). Total input calculated acc. to Brent Crude quotations. Spot market quotations. Spread Ural Rdam vs fwd Brent Dtd = Med Strip - Ural
Slide 16: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared by PKN ORLEN S.A. (“PKN ORLEN” or “Company”). Neither the Presentation nor any copy hereof may be copied, distributed or delivered directly or indirectly to any person for any purpose without PKN ORLEN’s knowledge and consent. Copying,
Slide 17: Investor Relations contact
For more information on PKN ORLEN, please contact Investor Relations Department: telephone: + 48 24 256 81 80 fax + 48 24 367 77 11 e-mail: [email protected] www.orlen.pl 17