ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Investor Presentation (March 2005)
27 slides from ORLEN Spolka Akcyjna's investor presentation, Mar 2, 2005
Slide 1: PKN ORLEN Retail Sales Development Plan for Poland 2005-2009
PSG\JAN05\EP\K2_OVERVIEW(01).PPT PKN ORLEN Retail Sales Development Plan for Poland 2005-2009 Wojciech Heydel, Chief Marketing Officer 2 March 2005
Slide 2: Strategic vision of the retail sales department
Strategic vision of the retail sales department From PKN ORLEN… „Aiming to become the regional leader we ensure long-term value creation for our shareholders by offering our customers products and services of the highest quality.” (…) Strategic vision of the Retail Network „Our ultimate goal is to b
Slide 3: Restructuring and optimisation of the network by 2009 and potential acquisitions
Restructuring and optimisation of the network by 2009 as well as potential acquisitions with a view to strengthening the Company’s market position are important elements of PKN ORLEN’s strategy Key assumptions in PKN ORLEN’s strategy with respect to the improvement of the investment effectiveness Ca
Slide 4: Strategic objectives and targets
Strengthening market position Strategic objectives and targets Enhancing operational efficiency Strategic Operating and financial objectives Area Key initiatives objectives (2009 r.) Creating efficient organization FLOTA programme’s Offering for z Intensification of sales to fleet customers share in
Slide 5: Agenda
Agenda Current Status Review z Strengthening Market Position z Enhancing Operating Efficiency z Creating an Efficient Organization z Summary 4
Slide 6: Position of PKN ORLEN – retail fuel market in Poland
Position of PKN ORLEN – retail fuel market in Poland PKN ORLEN’s position in the region1 Retail market in Poland – current status and forecasts2,3 bn litres Annual increase 2004-2007 4,3% 14.6 15.2 13.9 13.4 3,2 12.5 2.5 2.9 11.5 2.3 1.9 LPG 1.5 1 906 stations 5.6 5.6 5.6 494 stations 5.6 5.6 Gasoli
Slide 7: Current market position of PKN ORLEN's service station network
Current Status Review: Current market position of PKN ORLEN’s service station network Current status Structure of the network z The largest network of service stations in Poland, Full including a total of 1906 PKN ORLEN stations in branding 4695 Poland (accounting for ca. 25% of all the service stat
Slide 8: PKN ORLEN's retail sales in 2002–2004
Current Status Review: PKN ORLEN’s retail sales in 2002–2004 Area Performance volume of fuel sold (bn litres) - 2% p.a. Volume of fuel sold 4.0 3.9 3.9 2002 2003 2004 non-fuel margin per square metre (PLN ‘000) +7% p.a. Non-fuel sales 3.6 3.9 4.1 2002 2003 2004 number of participants (million) +22%
Slide 9: PKN ORLEN vs. competitors on the Polish retail fuel market 2002–2004
Current Status Review: PKN ORLEN vs. competitors on the Polish retail fuel market 2002–2004 PKN ORLEN’s share of retail fuel market 1,2,3 MER ratio in 2004 1,2,3 % market share Hypermarket 5.2 stations 31.6% 31.0% 30.4% Other station Other stations 0.5 Grupa Lotos 6.0% 6.0% 6.0% 1.2 Esso, Neste, Jet
Slide 10: Agenda
Agenda z Current Status Review Strengthening Market Position z Enhancing Operating Efficiency z Developing Efficient Organization z Summary 9
Slide 11: Offering for business customers
Strengthening market position Strengthening Market Position: Offering for business customers Enhancing operational efficiency Creating efficient organization Offering for business customers, tailored to individual needs groups z Poland’s largest companies and international corporations Target z Exis
Slide 12: Retail offering becoming polarised: new segment approach
Strengthening Market offering for retail customers is becoming strongly polarised, market position requiring a new segment approach from PKN ORLEN Enhancing operational efficiency Creating Target: Premium offering * efficient organization z Competitive product offer z Higher standard of services z H
Slide 13: Offering for retail customers
Strengthening market position Strengthening Market Position: Offering for retail customers Enhancing operational efficiency Segmentation of PKN ORLEN’s offer for retail customers Creating efficient organization Premium offering: strengthening Economy offering: new market segment position platform z
Slide 14: Creation of two standardised offerings: Premium and Economy
Strengthening Creation of two standardised offerings: Premium and market position Economy Enhancing operational efficiency Creating efficient organization Structure of the service stations network 2009 target structure of the service stations network1 Full branding 469* Premium ca. 1000 offering Bas
Slide 15: Agenda
Agenda z Current Status Review z Strengthening Market Position Enhancing Operating Efficiency z Developing Efficient Organization z Summary 14
Slide 16: Capital expenditure to reverse the trend and achieve minimum 30% market share
Strengthening Capital expenditure to reverse the current trend and to achieve market position a minimum 30% market share Enhancing operational efficiency Creating Capital expenditures Increase in sales fuels1,2 Target ROACE3 efficient organization 480 ~ 4 900 >17.5% ~ 3 900 +4.9% 400 350 annually +c
Slide 17: Enhancing Operating Efficiency: Actions
Strengthening market position Enhancing Operating Efficiency Enhancing operational efficiency Creating efficient Sales channels management – network Enhancing financial efficiency organization expansion plan1 z Expansion of owned (CODO) and franchised Goals (DOFO) stations z Increasing the profitabi
Slide 18: Agenda
Agenda z Current Status Review z Strengthening Market Position z Enhancing Operating Efficiency Developing Efficient Organization z Summary 17
Slide 19: Developing efficient organisation for retail network strategy
Strengthening Implementation of the retail network development strategy will be also market position correlated with developing efficient organisation Enhancing operational efficiency Creating efficient organization Restructuring and reorganisation of the retail network z Centralisation of managemen
Slide 20: Agenda
Agenda z Current Status Review z Strengthening Market Position z Enhancing Operating Efficiency z Developing Efficient Organization Summary 19
Slide 21: Key initiatives will contribute to increase in shareholder value
Implementation of the key initiatives in the PKN ORLEN retail sales development plan will contribute to an increase in shareholder value Summary Key operating and financial objectives (2009 r.)1 z Strengthening market position and enhancing z Market share1,2 min. 30% operational efficiency ¾ Sales v
Slide 22: Disclaimer
Disclaimer This retail sales development plan (the “Presentation”) has been prepared by PKN ORLEN (the “Company”). Neither this Presentation nor any copy of it may be reproduced, redistributed or passed on, directly or indirectly, to any person for any purpose. The distribution of this Presentation
Slide 23: Contact
Contact For more information please contact the following offices: Investor Relations Office: Press Office: Tel.: + 48 24 365 56 13 Tel.: + 48 24 365 33 90 fax: + 48 24 365 56 88 + 48 22 695 34 57 e-mail: [email protected] fax: + 48 22 695 35 27 e-mail: [email protected] www.orlen.pl 22
Slide 24: Additional Slides
Additional Slides 23
Slide 25: Examples of successful strategies of alternative brands and offerings
Examples of successful strategies of alternative brands and offerings validating the PKN ORLEN’s new segmentation strategy Brand Markets Key programme features Location Norway, Denmark, z 1-2-3 is Statoil’s brand for self-service stations, Baltic States launched in response to Jet Conoco’s expansion
Slide 26: Large potential of fuel sales to be taken over from non-branded stations
Large potential of ca. 1.3–2.6 bn litres of fuel sales to be taken over from non-branded service stations On developed markets, individual operators are being forced A similar trend is expected in Poland out by branded stations [number of service stations and % share] [number of service stations and
Slide 27: Key challenges related to implementation of the retail network strategy
Key challenges related to the implementation of the retail network development strategy Challenges Actions z Building new skills/resources for an z Initiating comprehensive programmes effective strategy implementation aiming at expansion and optimisation of employees’ competences z More profound ana