Tauron Polska Energia S.a. · GPW:TPE

Tauron Polska Energia — Q1 2017 Earnings Presentation

24 slides from Tauron Polska Energia's earnings presentation, May 11, 2017

  1. Slide 1: TAURON Group's Q1 2017 Financial Results

    TAURON Group’s Q1 2017 Financial Results May 11, 2017

  2. Slide 2: Q1 2017 key data

    Q1 2017 key data TAURON Group’s Q1 2017 results Q1 2017 vs [PLN m] Q1 2016 Sales revenue 4 590 1% EBITDA 1 185 36% Net profit* 640 98% CAPEX 636 (3)% down 0.01 down 0.19 Net debt/EBITDA 2.31x (vs 31.12.2016) (vs 31.03.2016) Q1 2017 operating data Q1 2017 vs Q1 2016 Commercial coal production [t m] 1

  3. Slide 3: Highlights Summary

    Highlights Summary February 28 TAURON Sprzedaż (TAURON Supply) terminates long term green certificates purchase agreements Amendment is signed with RAFAKO-MOSTOSTAL WARSZAWA consortium to the agreement on the construction of the 910 MW March 1 generation unit at Jaworzno III Power Plant – the unit’s

  4. Slide 4: Macroeconomic and market situation

    Macroeconomic and market situation Poland’s GDP growth rate* and manufacturing PMI Increase of industrial production sold* and (quarterly average)** electricity consumption (change yoy)*** 8% 7,3% 5% 56 6,0% 4,3% 5,0% 5,3% 5,7% 3,8% 55 6% 4,7% 4,5% 4,9% 4,3% 4% 3,7% 54 3,7% 3,9% 3,3% 3,3% 3,6% 4% 3,

  5. Slide 5: Q1 2017 key financial data

    Q1 2017 key financial data Sales revenue [PLN m] PLN m Net profit attributable to the parent company’s 4 565 4 590 5 000 shareholders [PLN m] 700 183 78 206 156 4 500 57 600 4 000 238 18 252 3 500 640 500 1 587 1 691 3 000 400 2 500 2 000 300 1 500 323 200 2 421 2 267 1 000 100 500 0 0 Q1 2016 Q1 20

  6. Slide 6: Q1 2017 key segments results

    Q1 2017 key segments results Other [PLN m] Mining Generation Distribution Supply and exclusions* Segment’s revenue 384 1 219 1 733 3 617 (2 365) EBITDA (29) 191 607 380 37 EBIT (60) 92 346 377 18 CAPEX 29 335 262 0,2 10 PLN m Individual segments’ contribution to EBITDA [%] 1 600 1 400 1 185 874 36%

  7. Slide 7: Q1 2017 EBITDA

    Q1 2017 EBITDA PLN 311m, 36% 1 600 1 400 19,2% -7,7% 15,6% 35,0% 10,5% 18,3%* 25,8% 212 1 1 200 412 64 1 000 35 800 417 774 600 400 457 200 0 Q1 2016 EBITDA Mining Generation Distribution Supply Other and exclusions Q1 2017 EBITDA EBIT Depreciation and write-downs Segment's increase Segment's decrea

  8. Slide 8: Mining segment – Q1 2017

    Mining segment – Q1 2017 Financial data [PLN m] EBITDA change [PLN m] 384 80 400 130 254 40 200 - 27 63 29 0 0 2 -29 -65 -29 -60 -104 -40 -69 -200 -65 Q1 Q1 2016 2017 -80 Q1 2016 Sold coal volume Coal production cost Inventory level change Other Q1 2017 Sales revenue EBITDA EBIT CAPEX Commercial coa

  9. Slide 9: Generation segment – Q1 2017

    Generation segment – Q1 2017 Financial data [PLN m] EBITDA change [PLN m] 1 400 250 1 272 1 219 1 200 26 200 1 000 9 191 - 12 191 800 150 - 23 600 335 100 400 256 200 89 191 191 92 50 0 Q1 2016 Q1 2017 0 Sales revenue EBITDA EBIT CAPEX Q1 2016 Electricity margin Heat margin CO2 costs Other Q1 2017 G

  10. Slide 10: Distribution segment – Q1 2017

    Distribution segment – Q1 2017 Financial data [PLN m] EBITDA change [PLN m] 800 2 000 700 41 1 733 102 607 1 616 543 22 8 3 600 -107 -5 500 262 400 252 1 000 328 262 300 543 607 200 292 346 292 346 100 0 0 Q1 2016 Q1 2017 Q1 2016 Distribution Sales volume TSO services' Grid losses Other Tax on grid

  11. Slide 11: Distribution segment – key parameters

    Distribution segment – key parameters Regulatory Asset Base [PLN bn] Customer connection time [in days] 18 200 16 180 16,3 14 15,6 160 14,9 160 140 150 150 12 120 10 100 8 80 6 60 4 40 2 20 0 0 2015 2016 2017 2015 2016 Q1 2017 RAB Customer connection time SAIDI [min.] SAIFI [number] 300 4 250 276,8

  12. Slide 12: Supply segment – Q1 2017

    Supply segment – Q1 2017 Financial data [PLN m] EBITDA change [PLN m] 400 190 380 - 11 3 4 000 350 377 3 509 3 617 300 3 000 250 60 200 168 1 2 000 - 23 -5 150 7 161 100 1 000 380 377 50 168 161 0 0 Q1 2016 Q1 2017 Q1 2016 Electricity - Property rights Property rights Income on gas ECSW Other Q1 201

  13. Slide 13: Debt and financing

    Debt and financing TAURON Group’s debt maturity as of 31.03.2017 [PLN m] 3500 3190 350 325 3000 Net debt/EBITDA = 2.31x 300 2500 2020 250 2000 200 1500 1000 779 802 150 500 439 340 288 281 261 200 200 185 170 100 74 73 187 0 37 0 50 40 40 37 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 202

  14. Slide 14: CAPEX – key projects' work progress

    CAPEX – key projects’ work progress Planned Capacity Capacity Work progress Investment project completion (MWe) (MWt) (percentage) date Construction of the hard coal-fired unit at Jaworzno III 910 - 33 2019 Power Plant Construction of the CCGT unit at Stalowa Wola 450 240 85 2019 Combined Heat and P

  15. Slide 15: CAPEX – per segment

    CAPEX – per segment Capital expenditures per segment [PLN m] (excluding equity investments) 653 (-2,5)% 636 Key investment projects underway in Q1 2017: Mining: - construction of the 800 m level at Janina coal mine (PLN 262 11m) 328 - construction of the Grzegorz shaft at Sobieski coal mine (PLN 2m)

  16. Slide 16: Efficiency improvement program

    Efficiency improvement program Savings realized Savings planned Segment Progress % Main initiatives in 2016 – Q1 2017 in 2016-2018  Employment restructuring, reduction of labor costs and increasing their flexibility, organizational measures Mining PLN 109m PLN 255m 43%  Use of electronic auctions

  17. Slide 17: Thank you – Q & A

    Thank you – Q & A Investor Relations Team Marcin Lauer marcin.lauer@tauron.pl tel. + 48 32 774 27 06 Paweł Gaworzyński pawel.gaworzynski@tauron.pl tel. + 48 32 774 25 34 Katarzyna Heinz katarzyna.heinz@tauron.pl tel. + 48 32 774 25 38 17 z 17 40

  18. Slide 18: Legal disclaimer

    Legal disclaimer This presentation serves for information purposes only and should not be treated as investment-related advice. This presentation has been prepared by TAURON Polska Energia S.A. (“the Company”). Neither the Company nor any of its subsidiaries shall be held accountable for any damage

  19. Slide 19: Electricity market price trends

    Electricity market price trends Electricity 2016 2017 (until April 18 + estimate) 2017/2016 Platforms: TGE, TFS, GFI, GPW-POEE Price (PLN/MWh) Volume (GWh) Price (PLN/MWh) Volume (GWh) Price % Volume % Forward BASE (Y+Q+M) 165.88 191 342 159.52 115 157 -3.8% -39.8% Forward PEAK (Y+Q+M) 210.27 23 414

  20. Slide 20: 2017 BASE contracts

    2017 BASE contracts Average price Volume [GWh] [PLN/MWh] Total 160.27 76 729 TGE 159.77 51 535 Including non TGE 161.29 25 194 Average electricity price that takes into account 2017 one year BASE and PEAK contracts: 164.83 PLN/MWh, total 2017 BASE and PEAK volume: 84 473 GWh 20 z 20 40

  21. Slide 21: 2018 BASE contracts

    2018 BASE contracts Average price Volume [GWh] [PLN/MWh] Total 159.76 21 138 TGE 159.76 14 419 Including non TGE 159.75 6 719 Average electricity price that takes into account 2018 one year BASE and PEAK contracts: 163.80 PLN/MWh, total 2018 BASE and PEAK volume: 22 941 GWh 21 z 21 40

  22. Slide 22: 2019 BASE contracts

    2019 BASE contracts Average price Volume [GWh] [PLN/MWh] Total 164.79 2 260 TGE 164.91 2 111 Including non TGE 163.09 149 Average electricity price that takes into account 2019 one year BASE and PEAK contracts: 166.90 PLN/MWh, total 2019 BASE and PEAK volume: 2 350 GWh 22 z 22 40

  23. Slide 23: Analysts covering TAURON

    Analysts covering TAURON Institution Analyst Institution Analyst DB Securities Tomasz Krukowski Raiffeisen Centrobank Teresa Schinwald Dom Maklerski mBanku Kamil Kliszcz Krzysztof Trigon Kubiszewski Societe Generale Bartłomiej Kubicki Michał Potyra UBS Investment Research Patrick Hummel Dom Maklersk

  24. Slide 24: Thank you for your attention

    Thank you for your attention 24 z 24 40

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