ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Q1 2010 Earnings Presentation
34 slides from ORLEN Spolka Akcyjna's earnings presentation, May 13, 2010
Slide 1: Good results. Stable financial position.
Good results. Stable financial position. PKN ORLEN consolidated financial results for 1 quarter 2010 Jacek Krawiec, CEO Sławomir Jędrzejczyk, CFO 13 May 2010 1
Slide 2: Agenda
Agenda Achievements in 1q 2010 Macroeconomic situation Financial and operating results in 1q 2010 Liquidity situation Summary 2
Slide 3: Good results limited by negative impact of seasonality
Good results limited by negative impact of seasonality Good financial results: PLN 0,6 bn of net profit (result improvement by over PLN 1,7 bn) and PLN 0,5 bn of operating profit (improvement by PLN 0,8 bn). Macroenviroment still remains not favorable, but the improvement of model refining and petro
Slide 4: Macroeconomic situation
Agenda Achievements in 1q 2010 Macroeconomic situation Financial and operating results in 1q 2010 Liquidity situation Summary 4
Slide 5: Volatile macro environment comparing to 1q 2009
Volatile macro environment comparing to 1q 2009 Crude oil price increase affects positively on Decrease in overall refining margin and U/B diff inventory revaluation Average Brent Crude Oil price (USD/bbl) Model refining margin1, Ural/Brent differential2 (USD/bbl) 75 76 - 1,1 USD/bbl 68 6,5 59 1,2 5
Slide 6: Fuel consumption still does not match GDP growth
Fuel consumption still does not match GDP growth GDP increase Fuel consumption Change (%) to respective quarter of last year* mt 1q 2q 3q 4q 1q 1q 1q 2009 2010 2009 2010 -1% 3,75 3,71 3,1 3,5 Poland 1,7 0,8 1,1 +1% 0,3 0,3 Lithuania -2,9 -12,1 -13,3 -14,2 -19,5 -12% 1,3 1,2 - 1,8 Czech -2,8 -3,9 -5,
Slide 7: Further improvement in macro expected in 2q 2010
Further improvement in macro expected in 2q 2010 Further crude oil price increase will support Significant improvement in refining margin and U/B diff PKN ORLEN results Average Brent Crude Oil price (USD/bbl) Model refining margin1, Ural/Brent differential2 (USD/bbl) 76 83 1,5 USD/bbl 75 6,9 68 6,5
Slide 8: Financial and operating results in 1q 2010
Agenda Achievements in 1q 2010 Macroeconomic situation Financial and operating results in 1q 2010 Liquidity situation Summary 8
Slide 9: Over PLN 600 m of net profit achieved in 1q 2010
Over PLN 600 m of net profit achieved in 1q 2010 1q’09 4q’09 1q’10 change y/y 17 807 17 442 Increase of revenues by 19% (y/y) 14 702 Revenues 19% due to the growth of crude oil PLN m prices. Improvement of reported EBIT by 334 464 PLN 784 m and positive operating EBIT +0,8 bn PLN m result acc. to LI
Slide 10: Over PLN 400 m of operating profit
Over PLN 400 m of operating profit change change 4q'09 1q'10 1q'09 PLN, m 3M'10 3M'09 y/y y/y 17 807 17 442 14 702 19% Revenues 17 442 14 702 19% 1 967 1 065 331 222% EBITDA 1 065 331 222% 334 464 -320 - EBIT 464 -320 - -163 -415 246 - LIFO effect -415 246 - 171 49 -74 - EBIT acc. to LIFO 49 -74 - -
Slide 11: Improvement of operating result thanks to petrochemical segment, crude prices and cost optimization
Improvement of operating result thanks to increase in petrochemical segment result, growing crude oil prices and costs optimization change change 4q'09 1q'10 1q'09 PLN, m 3M'10 3M'09 y/y y/y 334 464 -320 - EBIT, including the following segments: 464 -320 - 171 49 -74 - EBIT acc. t0 LIFO 49 -74 - 333
Slide 12: Increase of retail segment sales volumes
Increase of retail segment sales volumes change change 4q'09 1q'10 1q'09 th t 3M'10 3M'09 y/y y/y Sales volumes, 8 432 7 517 8 215 -8% 7 517 8 215 -8% including the following: 5 471 4 737 5 488 -14% Refining 4 737 5 488 -14% 1 712 1 541 1 482 4% Retail 1 541 1 482 4% 1 249 1 239 1 245 -0,5% Petroche
Slide 13: Improvement of operating result thanks to growing crude oil prices
Improvement of operating result thanks to growing crude oil prices, increase of petrochemical results and efficiency improvement programmes EBIT change PLN, m PLN + 784 m 600 500 163 464 400 661 82 300 200 (57) 100 (65) 0 -100 -200 -300 -400 - 320 EBIT 1q'09 Inventory Macro Volumes Optimization Othe
Slide 14: Liquidity situation
Agenda Achievements in 1q 2010 Macroeconomic situation Financial and operating results in 1q 2010 Liquidity situation Summary 14
Slide 15: Safe level of net debt at PLN 10,3 bn
Safe level of net debt at PLN 10,3 bn Safe financial situation Net debt (PLN, m) Maintaining of debt at the level of PLN 10,3 bn. 14,3 13,8 13,3 Almost 70% of debt will be declared due and payable starting from 2012. 10,3 10,3 Available credit facilities in PKN ORLEN amount to over EUR 1 bn. Covenan
Slide 16: Consistent debt and financial gearing reduction
Consistent debt and financial gearing reduction change change 4q'09 1q'10 1q'09 PLN, m 3M'10 3M'09 y/y y/y 2 916 416 1 151 -735 Cash Flow from operations 416 1 151 -735 2 515 -595 609 -1 204 including: working capital change 1 -595 609 -1 204 408 -575 -852 277 Cash Flow from investments -575 -852 27
Slide 17: Improvement of working capital by PLN 2,2 bn
Improvement of working capital by PLN 2,2 bn Change in working capital Change in cash flow from investments PLN, bn PLN, bn 2,4 0,8 0,0 2,2 Extension of 0,8 payment for 1,8 0,1 0,0 crude oil 1,2 (1,0) 1,1 0,8 Investment payment 0,5 0,6 Accelerating of receivables Sales of CO2 inflow 0,6 0,6 emission
Slide 18: Change in formula of keeping obligatory reserves
Change in the formula of keeping of obligatory reserves improves balance sheet and decreases PKN ORLEN operating risk In the frames of existing regulations PKN ORLEN decided to optimize the formula of keeping of obligatory inventories through resale of the part of volume and assigning the keeping of
Slide 19: Summary
Agenda Achievements in 1q 2010 Macroeconomic situation Financial and operating results in 1q 2010 Liquidity situation Summary 19
Slide 20: Consistent realization of actions increasing PKN ORLEN value
Consistent realization of actions increasing PKN ORLEN value Subsidiaries Further reduction of debt Development investments Orlen Lietuva Obligatory inventories Installations reduction of fixed costs and resale of the first part of start-up of PX/PTA in 4q optimization of employment. inventories in
Slide 21: Summary
Summary Good financial and operating results: PLN 0,6 bn of net profit (improvement of result by over PLN 1,7 bn) and PLN 0,5 bn of operating profit (improvement by PLN 0,8 bn). Increase of retail sales volumes by 4% at the decreasing fuel consumption on the market. Decreasing net debt by PLN 4 bn a
Slide 22: Thank You for Your attention
Thank You for Your attention For more information on PKN ORLEN, please contact Investor Relations Department: telephone: + 48 24 365 33 90 fax + 48 24 365 56 88 e-mail: [email protected] www.orlen.pl 22
Slide 23: Supporting slides
Agenda Achievements in 1q 2010 Macroeconomic situation Financial and operating results in 1q 2010 Liquidity situation Summary Supporting slides 23
Slide 24: Refining segment. Segment results under influence of macro environment
Refining segment. Segment results under influence of macro environment PLN m EBIT change PLN + 542 m 600 668 500 86 426 400 72 300 (185) 200 (99) 100 0 -100 -200 (116) EBIT 1q'09 Inventory Macro Volumes Optimisation Other EBIT 1q'10 valuation Positive inventories valuation effect due to growing crud
Slide 25: Retail segment. Sales volumes increase limited by low fuel margins
Retail segment. Sales volumes increase limited by low fuel margins EBIT change PLN (-) 12 m PLN m 100 90 87 8 75 80 70 11 8 60 50 9 40 30 (48) 20 10 0 EBIT 1q'09 Fuel margins Volumes Non-fuel sales Optimisation Other EBIT 1q'10 Active trade allowed sales volumes increase by 4% (y/y), on the market e
Slide 26: Petrochemical segment. Visible improvement in petrochemical segment
Petrochemical segment. Visible improvement in petrochemical segment EBIT change PLN m PLN + 177 m 150 27 105 100 4 25 128 50 0 -50 -100 (72) (7) EBIT 1q'09 Inventory Macro Volumes Optimisation Other EBIT 1q'10 valuation Increase of total sales volumes in the segment is mainly a result of higher sale
Slide 27: PKN ORLEN Group results breakdown by key companies in 1q 2010
PKN ORLEN Group results breakdown by key companies in 1q 2010 Others & PKN ORLEN PKN ORLEN PKN ORLEN ORLEN IFRS, PLN m Unipetrol consolidation Group Group (unconsolidated) Lietuva 3) excludings 1q'10 1q'09 Revenues 12 783 2 764 3 108 -1 213 17 442 14 702 EBITDA 703 204 16 142 1 065 331 Depreciation
Slide 28: PKN ORLEN Group EBIT by segments in 1q 2010
PKN ORLEN Group EBIT by segments in 1q 2010 Others & PKN ORLEN PKN ORLEN PKN ORLEN ORLEN IFRS, PLN m Unipetrol consolidation Group Group (unconsolidated) Lietuva excludings 1q'10 1q'09 Reported EBIT 482 54 -103 31 464 -320 EBIT acc. to LIFO 163 -27 -128 41 49 -74 1 Refining 450 33 -65 8 426 -116 Ref
Slide 29: ORLEN Lietuva key elements of the profit and loss account
ORLEN Lietuva Key elements of the profit and loss account1 change change 4q'09 1q'10 1q'09 IFRS, USD m 3M'10 3M'09 y/y y/y 1 229 1 060 831 28% Revenues 1 060 831 28% 9 6 15 -60% EBITDA 6 15 -60% -11 -16 -2 -700% EBIT -16 -2 -700% -38 -24 -18 -33% EBIT acc. to LIFO -24 -18 -33% -41 -29 -19 -53% Net r
Slide 30: UNIPETROL Group key elements of the profit and loss account
UNIPETROL Group. Key elements of the profit and loss account1 change change 4q'09 1q'10 1q'09 IFRS, CZK m 3M'10 3M'09 y/y y/y 18 347 18 039 14 513 24% Revenues 18 039 14 513 24% 620 1 352 709 91% EBITDA 1 352 709 91% -260 517 -127 - EBIT 517 -127 - -563 -15 -329 95% EBIT acc. to LIFO -15 -329 95% -2
Slide 31: Key production data
Key production data change change Key production data 4q09 1q10 1q09 y/y q/q Refinery in Poland 1 Processed crude (tt) 3 498 3 495 3 573 -2% 0% Utilisation 98% 101% 100% 1 pp 3 pp Fuel yield 4 69% 58% 67% -9 pp -11 pp Middle distillates yield 5 49% 41% 46% -5 pp -8 pp 6 Gasoline yield 21% 17% 21% -4
Slide 32: Increase in refining margin as well as in U/B differential
Increase in refining margin as well as in U/B differential 12 PKN ORLEN m odel refining m argin (Group) 2009 average 2009 2010 average 2010 9 6 4.0 USD/bbl 3.8 USD/bbl 3 0 January February March April May June July August September October November December 4 Ural/Brent differential 2009 average 200
Slide 33: 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 34: For more information on PKN ORLEN, please contact Investor Relations
For more information on PKN ORLEN, please contact Investor Relations Department: telephone: + 48 24 365 33 90 fax + 48 24 365 56 88 e-mail: [email protected] www.orlen.pl 34