ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Q4 2009 Earnings Presentation
36 slides from ORLEN Spolka Akcyjna's earnings presentation, Feb 25, 2010
Slide 1: Stable growth despite unfavourable market conditions
Stable growth despite unfavourable market conditions PKN ORLEN consolidated financial results for 4 quarter 2009 Jacek Krawiec, CEO Sławomir Jędrzejczyk, CFO 25 February 2010 1
Slide 2: Agenda
Agenda Achievements in 2009 Operating and financial results in 4q 2009 Efficiency programmes realisation Outlook for 2010 Supporting slides 2
Slide 3: Achievements in 2009: good results in a difficult environment
PKN ORLEN ends up the year 2009 with good results. Due to successful realization of ambitious targets we faced the challenge and went through the difficult macroeconomic environment Good financial results: PLN 1.3 bn net profit comparing to PLN 0.6 bn loss in 2008. PLN 6 bn additional cash generated
Slide 4: Agenda
Agenda Achievements in 2009 Operating and financial results in 4q 2009 Efficiency programmes realisation Outlook for 2010 Supporting slides 4
Slide 5: Net profit of PLN 1.3 bn achieved in 2009
Net profit of PLN 1.3 bn achieved in 2009… 4q’08 3q’09 4g’09 Change y/y 16 445 18 649 17 807 Significant improvement of 8% operating result and net result Revenues PLN m (y/y). 423 334 Despite difficult market EBIT enviroment increase of retail - PLN m sales by 7% and petrochemical -1 965 sales by 2
Slide 6: Depressed refining margins and low U/B differential
… with depressed refining margins and low U/B differential Dramatically low refining margin Growing crude oil prices and slight increase of U/B differential Average Brent Crude Oil price (USD/bbl) Model refining margin1, Ural/ Brent differential2 (USD/bbl) 75 9,5 68 56 59 Diff 1,8 - 6,6 USD/bbl 6,5
Slide 7: PLN 1.1 bn of EBIT and PLN 1.3 bn of net profit achieved in 2009
PLN 1.1 bn of EBIT and PLN 1.3 bn of net profit achieved in 2009. change change 3q'09 4q'09 4q'08 PLN, m 1-4q'09 1-4q'08 y/y y/y 18 649 17 807 16 445 8% Revenues 67 928 79 533 -15% 1 1 050 967 -1 275 - EBITDA 3 665 3 249 13% 423 334 -1 965 - EBIT 1 097 758 45% -307 -163 2 713 - LIFO effect -1 152 1
Slide 8: Over PLN 5 bn of cash from operations in 2009
Over PLN 5 bn of cash from operations in 2009 thanks to operating achievements and optimization of working capital change change 3q'09 4q'09 4q'08 PLN, m 1-4q'09 1-4q'08 y/y y/y -827 2 916 1 111 1 805 Cash Flow from operations 5 162 3 609 1 553 -2 182 2 515 2 678 -163 including: working capital chan
Slide 9: Debt reduction by PLN 2.3 bn (y/y)
Debt reduction by PLN 2.3 bn (y/y) Debt Debt revaluation due to PLN appreciation reduces debt in 4q2009 by almost PLN 300 m. Positive exchange rates differences due to revaluation of foreign units debts and USD denominated debt at the amount of PLN 115 m for 4q2009 were booked in equity, including P
Slide 10: Significant increase of retail and petrochemical sales (y/y)
Significant increase of retail and petrochemical sales (y/y) change change 3q'09 4q'09 4q'08 th t 1-4q'09 1-4q'08 y/y y/y Sales volumes, 8 837 8 432 8 292 2% 33 624 34 844 -4% including the following: 6 081 5 659 5 839 -3% Refining 22 788 24 439 -7% 1 630 1 524 1 419 7% Retail 6 017 5 690 6% 1 126 1
Slide 11: Operating result improvement thanks to higher retail sales and cost optimization
Operating result improvement thanks to higher retail sales, increasing crude oil prices and costs optimization change change 3q'09 4q'09 4q'08 PLN, m 1-4q'09 1-4q'08 y/y y/y 423 334 -1 965 - EBIT, including the following segments: 1 097 758 45% 116 171 748 -77% EBIT acc. to LIFO -55 2 601 - 137 333
Slide 12: Good operating result despite difficult macroeconomic situation
Good operating result due to operational activity despite difficult macroeconomic situation EBIT change PLN, m PLN + 2299 m 1200 700 334 (1067) 17 200 269 204 -300 2876 -800 -1300 -1800 -2300 (1965) EBIT 4q'08 Inventory Macro Volumes Optimization Other EBIT 4q'09 valuation Positive inventories valua
Slide 13: Agenda
Agenda Achievements in 2009 Operating and financial results in 4q 2009 Efficiency programmes realisation Outlook for 2010 Supporting slides 13
Slide 14: Integrated package of optimization programmes
Recognising scope and strength of economic turmoil, integrated package of optimization programmes has been developed and implemented Optimization of Optimization of Optimization of Optimization of Other efficiency operating and structure and level CAPEX fixed costs initiatives investment flows of em
Slide 15: Additional cash flow generating potential
Additional cash flow generating potential Key activities in the field of optimization of cash flow and working capital 4,3 PLN, bn 0,7 0,5 0,7 1,8 0,6 Extending of Accelerating of Other Deferring of Sales of CO2 Total payment for crude receivables inflow activities investment emission rights oil (fa
Slide 16: Agenda
Agenda Achievements in 2009 Operating and financial results in 4q 2009 Efficiency programmes realisation Outlook for 2010 Supporting slides 16
Slide 17: Planned shutdowns in 2010
Planned shutdowns in 2010 1q’10 2q’10 3q’10 4q’10 HDS VI & HDS V Reforming Cracking HOG Olefin Unit Visbreaking PP HDS Shutdowns of Cracking, HDS VI, HOG and Olefins Unit in Plock are key in 2010. 2-week shutdown in Lithuania refinery. Main maintenance shutdown postponed for 2011. Negative impact on
Slide 18: Difficult macroeconomic situation continues in 1q 2010
Difficult macroeconomic situation continues in 1q 2010 Crude oil price stabilization Refining margin rebound at low U/B differential Average Brent Crude Oil price (USD/bbl) Model refining margin1, Ural/Brent differential2 (USD/bbl) 75 74 9,5 68 56 59 Diff 1,8 6,5 44 5,5 + 1,3 USD/bbl 1,2 0,9 3,6 4,2
Slide 19: Catalysts of PKN ORLEN further value increase
Catalysts of PKN ORLEN further value increase Subsidiaries Further debt reduction Development investments Orlen Lietuva – maximising the Obligatory inventories – Start-up at the end of 2010 possessed potential expected decision of the PX/PTA unit producing 600 th Government regarding the tonnes of P
Slide 20: 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 20
Slide 21: Agenda
Agenda Achievements in 2009 Operating and financial results in 4q 2009 Efficiency programmes realisation Outlook for 2010 Supporting slides 21
Slide 22: Refining segment
Refining segment. Segment results under strong pressure of macro environment EBIT change PLN, m PLN + 2196 ml 1500 1000 500 (771) 333 143 27 37 0 -500 2760 -1000 -1500 -2000 (1863) -2500 EBIT 4q'08 Inventory Macro Volumes Optimization Other EBIT 4q'09 valuation Positive inventories valuation effect
Slide 23: Retail segment
Retail segment. Significant increase of sales efficiency and market share EBIT change PLN, m PLN - 2 m 240 230 12 220 (24) 210 14 (4) 200 209 207 190 180 EBIT 4q'08 Fuel sales Non-fuel sales Optimization Other EBIT 4q'09 Increase of sales volumes by 7% (y/y) and market share in all companies of the
Slide 24: Petrochemical segment
Petrochemical segment. Increase of petrochemical segment sales by 21% (y/y) EBIT change PLN, m PLN + 31 m 100 50 0 116 0 -50 59 (17) (48) (296) -100 -150 152 -200 -250 EBIT 4q'08 Inventory Macro Volumes Optimization Other EBIT 4q'09 valuation Increase of total sales volumes in segment is mainly as a
Slide 25: Group results breakdown by key companies in 4q 2009
PKN ORLEN Group results breakdown by key companies in 4q 2009 Others & PKN ORLEN PKN ORLEN PKN ORLEN ORLEN IFRS, PLN m Unipetrol consolidation Group Group (unconsolidated) Lietuva 3) excludings 4q'09 4q'08 1) 12 826 2 901 3 411 -1 331 17 807 16 445 Revenues EBITDA 692 96 30 149 967 -1 275 Depreciati
Slide 26: Group EBIT by segments in 4q 2009
PKN ORLEN Group EBIT by segments in 4q 2009 Others & PKN ORLEN PKN ORLEN PKN ORLEN ORLEN IFRS, PLN m Unipetrol consolidation Group Group (unconsolidated) Lietuva excludings 4q'09 4q'08 Reported EBIT 432 -58 -64 24 334 -1 965 EBIT acc. to LIFO 394 -107 -142 26 171 748 1 Refining 363 -59 -13 42 333 -1
Slide 27: Group results breakdown by key companies in 2009
PKN ORLEN Group results breakdown by key companies in 2009 Others & PKN ORLEN PKN ORLEN PKN ORLEN ORLEN IFRS, PLN m Unipetrol consolidation Group Group (unconsolidated) Lietuva 3) excludings 2009 2008 1) Revenues 47 481 11 025 13 229 -3 806 67 928 79 533 EBITDA 1 761 445 259 1 199 3 665 3 249 Deprec
Slide 28: Group EBIT by segments in 2009
PKN ORLEN Group EBIT by segments in 2009 Others & PKN ORLEN PKN ORLEN PKN ORLEN ORLEN IFRS, PLN m Unipetrol consolidation Group Group (unconsolidated) Lietuva excludings 2009 2008 Reported EBIT 790 -182 -233 722 1 097 758 EBIT acc. to LIFO 236 -419 -578 706 -55 2 601 1 Refining 939 -246 -46 477 1 12
Slide 29: ORLEN Lietuva Group. Key elements of the profit and loss account
ORLEN Lietuva Group. Key elements of the profit and loss account1 change change 3q'09 4q'09 4q'08 IFRS, USD m 1-4q'09 1-4q'08 y/y y/y 1 232 1 209 1 094 11% Revenues 4 293 7 440 -42% -13 11 -172 - EBITDA 79 18 339% -54 -23 -220 90% EBIT -77 -178 57% -53 -52 11 - EBIT acc. to LIFO -188 41 - -38 -4 -26
Slide 30: UNIPETROL Group. Key elements of the profit and loss account
UNIPETROL Group. Key elements of the profit and loss account1 change change 3q'09 4q'09 4q'08 IFRS, CZK m 1-4q'09 1-4q'08 y/y y/y 18 732 18 347 19 015 -4% Revenues 67 387 98 144 -31% 866 620 -351 - EBITDA 2 778 4 481 -38% 5 -260 -1 261 79% EBIT -654 1 003 - -103 -568 1 057 - EBIT acc. to LIFO -2 082
Slide 31: Key production data
Key production data Key production data Change 3q'09 4q'09 4q'08 y/y q/q Refineries Processed crude (tt) 3 870 3 498 3 594 -2,7% -9,6% in Poland1 Utilization 108,3% 97,8% 102,0% -4,1 pp -10,4 pp 4 Fuel yield 58,4% 69,4% 66,0% 3,4 pp 11,0 pp 5 Middle distillates yield 38,3% 48,7% 46,0% 2,7 pp 10,4 pp
Slide 32: Difficult macroeconomic situation continues in 1q 2010
Difficult macroeconomic situation continues in 1q 2010. 12 PKN ORLEN m odel refining m argin (Group) 2009 Average 2009 średnia 2009 2010 Average 2010 średnia 2010 9 6 3,8 USD/bbl 3 3,5 USD/bbl 0 sty czeń January luty February marzec March kwiecień April maj May czerwiec June lipiec July sierpień Aug
Slide 33: Macroeconomic environment in refinery
Macroeconomic environment in refinery PKN ORLEN model refining margin (Group) 1) Decrease by 71% to the level of 2,2 USD/b in 4q’09 (y/y) 7,0 7,1 7,7 5,3 4,6 3,6 3,1 3,5 2,2 1q 2q 3q 4q 1q 2q 3q 4q 1q* 2008 2009 2010 Brent Crude Oil price Ural/Brent differential 2)) Increase by 34% to the level of 7
Slide 34: Macroeconomic environment in petrochemicals and financial sector
Macroeconomic environment in petrochemicals and financial sector PKN ORLEN model petrochemical margin (Group) 1) Exchange rate PLN/USD and PLN/EUR 2) Decrease by 23 % do poziomu 600 EUR/t w 4kw’09 (r/r) Decrease of PLN/USD by 1% and increase of PLN/EUR by 11% (r/r) 756 779 783 4,50 4,45 4,20 4,17 4,
Slide 35: 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 36: Investor Relations contact
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 36