ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — Polski Koncern Naftowy ORLEN — Q1 2003 Earnings Presentation
17 slides from ORLEN Spolka Akcyjna's earnings presentation, May 2003
Slide 1: 1Q 2003 results
~“ ORLEN Polski Koncern Naftowy ORLEN Spdotka Akcyjna 1Q 2003 results May 2003
Slide 2: Market environment – favourable conditions in the oil market influenced ORLEN's results
Market environment – favourable conditions in the oil market influenced ORLEN’s results Crude oil price, Brent (USD/bbl) 35,00 32,00 l Increase in crude demand in OECD 31.5 29,00 countries of 1.14 mb/d (y-o-y) + 49.3 % 26,00 21.1 l Increase in crude oil (Brent) prices of 23,00 49.3% (y-o-y) reflecte
Slide 3: Market environment – potential for growth (q-o-q), but Polish conditions still unfavourable
Market environment – potential for growth (q-o-q), but Polish conditions still unfavourable (y-o-y) Real GDP growth 3% l GDP growth at a low level, as for 2,1% converging economy, of 2.1% (y-o-y)* 2% Average of 2002 - 1.25% l Increase in unemployment rate of 0.5 pp (y-o-y) 1% l Increase in new car s
Slide 4: Financial highlights – extraordinary performance in a mixed environment
Financial highlights – extraordinary performance in a mixed environment l Increase in product prices and IFRS basis, million PLN 1Q 03 1Q 02 change consolidation of German activities had Revenue 4,962 3,502 41.7% a significant impact on increase in EBIT 590 179 229.6% revenues EBITDA 900 453 98.7% l
Slide 5: Operating highlights - less crude oil processed due to lower market demand
Operating highlights - less crude oil processed due to lower market demand IFRS basis, million PLN 1Q 03 1Q 02 change l Significant increase in retail Retail sales of sales due to consolidation of 632 498 26.9% German activities and strong motor fuels (tt) battle for a customer in the Polish Light p
Slide 6: Profit / Cash flow – full utilisation of present market situation in Oil&Gas
Profit / Cash flow – full utilisation of present market situation in Oil&Gas l Increase in distribution costs due to consolidation of PLN 26m costs in IFRS basis, million PLN 1Q 03 1Q 02 change Germany and an aggressive battle Revenue 4,962 3,502 41.7% for retail customers in Poland Cost of sales -3
Slide 7: Balance sheet – influence of previously-announced strategic projects
Balance sheet – influence of previously- announced strategic projects IFRS basis, million PLN 1Q 03 Y 02 change Non-current assets 10,607 9,814 8.1% l Influence of consolidation of Current assets of which 6,717 5,259 27.7% German activities and JV creation reflected in changes in Inventories 3,260 2
Slide 8: Optimisation of sales through CODO stations and authorised representatives of LHO
Optimisation of sales through CODO stations and authorised representatives of LHO Fuel sales structure 100% 24 20 20 18 l Increased share of company- 80% 40 37 owned stations in the distribution 21 structure in order to maximise 23 60% 14 16 1 6 total margins 15 12 4 5 40% 76 80 l Maximising LHO sal
Slide 9: We utilized opportunity created by extremely good margins
We utilized opportunity created by extremely good margins Refining and wholesale lA visible decrease in consumption of fuels and IFRS basis, mPLN 1Q03 1Q02 change aggressive pricing policy was Revenue 3,936 2,925 34.6% reflected in a strong contraction in Total costs 3,439 2,756 24.8% sales of the s
Slide 10: Monthly average fuel sales per station
Monthly average fuel sales (gasoline, diesel, LPG) per station 400 291,3 286,8 300 -1.6% 200 155,2 153,0 -1.4% 000 l 100 0 1Q02 1Q03 PKN ORLEN (CoDo in Poland) Foreign multinationals 10
Slide 11: Aggressive battle for customers affected retail performance in 1Q03
Aggressive battle for customers affected retail performance in 1Q03 Retail l Strong increase in volumes due to IFRS basis, mPLN 1Q03 1Q02 change consolidation of German sites Revenue 1,695 912 85.9% l Aggressive battle for clients in the Total costs 1,719 881 95.1% domestic market could not offset t
Slide 12: Another quarter of very good performance from the chemical segment
Another quarter of very good performance from the chemical segment Petrochemicals l In spite of the contraction in the IFRS basis, mPLN 1Q03 1Q02 change fuel market, pet-chems showed Revenue 1,257 924 36.0% further signs of health (6.6% Total costs 1,047 883 18.6% increase in sale volumes) of the se
Slide 13: Outlook for 2Q03
Outlook for 2Q03 Retail – expected flat volumes and significant increase in margins (diesel, LPG and non-fuel sales) Wholesale – still visible contraction in sales (especially gasoline) Revamping of HOWK (Hydrocracker) to start in June Sale of 5 companies (mainly maintenance): cash inflow
Slide 14: Supplementary slides
Supplementary slides 14
Slide 15: Germans are getting increasingly price sensitive, this supports a two-brand strategy
Germans are getting increasingly price sensitive, this supports a two-brand strategy In the German retail fuel market, petrol stations offer fuels of the highest quality. In case of high prices in the market, customers choose low-margin filling stations with high throughput and low prices. They are
Slide 16: Influence of ORLEN Deutschland and Poliolefiny Polska on Balance Sheet and P&L
Influence of ORLEN Deutschland and Poliolefiny Polska Sp. z o.o. on Balance Sheet and P&L 1Q2003 of which Balance sheets - selected items (PLNm) 1Q2003 Germany and 1Q2002 (*)Basell Property, plant and equipment 9 510 603 9 089 Investments accounted for on an equity basis 551 351* 199 Inventories 3 2
Slide 17: Thank You
~“ ORLEN Polski Koncern Naftowy ORLEN Spdotka Akcyjna Thank You
Polski Koncern Naftowy ORLEN — Q1 2003 Earnings Presentation on 6ix