Ze Pak Sa · GPW:ZEP

Ze Pak Sa — Zespół Elektrowni Pątnów-Adamów-Konin — Q1 2015 Earnings Presentation

26 slides from Ze Pak Sa's earnings presentation, May 14, 2015

  1. Slide 1: 1st Q 2015 results

    14 May 2015 Zespół Elektrowni „Pątnów-Adamów-Konin” S.A. 1stQ 2015 results

  2. Slide 2: 1Q 2015 Summary

    1Q 2015 Summary • Increase in electricity sale by 0,32 TWh (q/q): – higher electricity resale by 0,54 TWh (q/q), – lower electricity sale from own production by 0,22 TWh (q/q). • Higher average electricity sale price by 7,4% (q/q). • Higher cost of purchase of CO2 emission allowances by 105,2% (q/q)

  3. Slide 3: Selected Energy Market Data

    SELECTED ENERGY MARKET DATA 3

  4. Slide 4: Daily demand for electricity and IRDN prices

    Daily demand for electricity and IRDN prices – 1Q 2014 and 1Q 2015 550000 Cumulated daily demand 500000 450000 MWh 400000 2015 2014 350000 300000 16-Jan 31-Jan 15-Feb 2-Mar Mar 1-Jan 17- 250 IRDN prices 200 zł/MWh 150 2015 2014 100 50 16-Jan 31-Jan 15-Feb 2-Mar 17-Mar 1-Jan 4

  5. Slide 5: EUA and green certificates of origin prices

    PLN 4 5 EUR 6 8 7 100 200 250 300 150 50 2-Jan 2-Jan 9-Jan 9-Jan EUA Prices 16-Jan 16-Jan 23-Jan 23-Jan Green certificates prices 30-Jan 30-Jan in 1Q 2014 and 1Q 2015 6-Feb 6-Feb 13-Feb 13-Feb 20-Feb 20-Feb EUA and „green” certificates of origin 27-Feb 27-Feb 6-Mar 6-Mar 13-Mar 13-Mar 20-Mar 20-Mar

  6. Slide 6: Base load prices for 2016 listed in 1Q 2015

    „Base load” prices for 2016 listed in 1Q 2015 (BASE_Y-16) Base load prices BASE_Y-16 since 01.01.2015 to 31.03.2015 185 180 175 zł/MWh Price 170 165 160 15-Jan 22-Jan 29-Jan 5-Feb 12-Feb 19-Feb 26-Feb 5-Mar 12-Mar 19-Mar 26-Mar 1-Jan 8-Jan 6

  7. Slide 7: Operational Data

    OPERATIONAL DATA 7

  8. Slide 8: Net production and sale of electricity [TWh]

    Net production and sale (own production and resale) of electricity [TWh] NET PRODUCTION SALE 2,56 3,58 2,34 3,25 0,62 1,24 0,70 0,61 0,15 0,17 0,79 0,65 2,34 2,56 0,90 0,99 3M 2015 3M 2014 3M 2015 3M 2014 Pątnów II Konin Adamów Pątnów I Total Own production Resale Total 8

  9. Slide 9: Lignite consumption and CO2 emissions

    Lignite consumption and CO2 emissions [m tons] LIGNITE CONSUMPTION CO2 EMISSION 3,50 3,25 3,20 2,91 1,12 0,65 1,00 0,63 2,25 2,38 2,28 2,55 3M 2015 3M 2014 3M 2015 3M 2014 KWBA KWBK Total Pątnów II ZE PAK Total

  10. Slide 10: Financial Data

    FINANCIAL DATA 10

  11. Slide 11: Consolidated P&L (1/2)

    Consolidated P&L (1/2) [m PLN] 1Q 2015 1Q 2014 755 Sales revenue 755 668 [m PLN] 668 Change % 13,02% Cost of goods sold -690 -546 Gross profit 65 121 Margin % 8,61% 18,11% Other operating income 6 7 Selling and distribution expenses -1 -1 Administrative expenses -30 -44 169 Other operating expenses

  12. Slide 12: Electricity sales

    Electricity sales Electricity sales(1) Average sale price(2) Sales revenues [TWh] [PLN/MWh] [m PLN] +9,9% +7,4% +18,1% 1Q 2015 1Q 2015 1Q 2015 3,58 176,43 631 1Q 2014 3,25 1Q 2014 164,24 1Q 2014 534 (1) Sale of own production electricity and resale of electricity. (2) Average price calculated as sal

  13. Slide 13: EBITDA changes

    EBITDA changes [mln PLN] + 44 + 53 -5 -2 + 13 -3 - 39 169 130 - 100 EBITDA Volume sold Electricity price Green LTC Other CO2 emission Administrative Other (1) EBITDA 1Q 2014 certificates compensation income costs expenses expenses 1Q 2015 (1) Main factors for higher other expenses are higher value o

  14. Slide 14: Consolidated P&L (2/2)

    Consolidated P&L (2/2) [m PLN] 1Q 2015 1Q 2014 EBIT -----˃ net profit EBIT 38 81 Finance income 20 2 37,8 + 3,9 34,4 Finance costs -16 -15 - 7,3 Profit before tax 42 67 Income tax EBIT Result on Income tax Net profit (taxation) -7 -14 1Q 2015 financial 1Q 2015 activities Effective tax rate % 16,67%

  15. Slide 15: Consolidated P&L for 1Q 2015 by segments

    Consolidated P&L for 1Q 2015 by segments Consolidation m PLN Generation Mining Renovation Sales Other adjustments Total Sales revenue from external customers 449,6 3,1 38,0 262,9 1,7 - 755,2 External sales revenue % 81,1% 1,5% 33,7% 100,0% 7,0% 100,0% Sales revenue between segments 105,1 210,5 74,6

  16. Slide 16: EBITDA by segments

    EBITDA by segments [m PLN] GROUP GENERATION MINING 169,4 121,6 37,1 130,3 88,8 94,4 67,2 27,0 21,0 92,4 63,5 27,7 37,8 80,6 30,9 54,4 -0,7 16,1 1Q 2015 1Q 2014 1Q 2015 1Q 2014 1Q 2015 1Q 2014 D&A EBIT EBITDA D&A EBIT EBITDA D&A EBIT EBITDA RENOVATION ELECTRICITY SALES OTHER 6,4 1,4 3,7 0,3 1,3 2,6 0

  17. Slide 17: Revenue

    Revenue [m PLN] 1Q 2015 411 418 1Q 2014 220 116 44 46 36 34 16 20 21 20 7 14 Sale of electricity Resale of Certificates of LTC Heat sale Construction Other from own electricity from origin compensation services production the market 17

  18. Slide 18: Sale breakdown by customers and market type

    Sale breakdown by customers and market type by customers (internal ring) and by the market type (external ring) 1Q 2015 1Q 2014 Balancing Balancing market market 5,5% 8,0% Top 5 Top 5 customers customers Bilateral Bilateral 43,2% contracts 49,7% contracts Other 43,8% 46,6% 50,3% Other 56,8% Polish p

  19. Slide 19: Cost by type

    Cost by type [m PLN] 213 1Q 2015 1Q 2014 160 156 117 110 114 92 89 76 44 45 42 37 33 5 10 Materials D&A Social security Cost of goods, External Taxes and fees CO2 emission Other and other raw materials services (excluding costs allowances for resale and excise duty) energy for resale 19

  20. Slide 20: Consolidated statement of financial position

    Consolidated statement of financial position [m PLN] 31.03.2015 31.12.2014 Non current 3855 Equity Non current 3820 Equity assets assets 5780 5686 Current Non current Current Non current assets (1) liabilities assets (1) liabilities Current liabilities Current liabilities Cash and cash 1901 Cash and

  21. Slide 21: Net debt

    Net debt Net debt [m PLN] Net debt / EBITDA 31.03.2015(1) 31.12.2014 31.03.2015 (1) 2,10 31.12.2014 1,57 985 (1) EBITDA annualized 797 (2) Cash and cash equivalents from Consolidated statement of financial position and other short- term financial assets -327 -451 Cash and cash equivalents (2) intere

  22. Slide 22: Consolidated Cash Flow

    Consolidated Cash Flow [m PLN] 1Q 2015 1Q 2014 Profit/loss before taxation 41,8 67,5 Depreciation and amortization 92,0 88,5 Profit/loss on investing and financial activities -7,1 8,9 Changes in working capital -110,5 -56,8 Income tax 0,7 -11,7 Purchase of EUA -90,4 -56,7 Other -1,4 -0,1 Net cash fl

  23. Slide 23: CAPEX (non-current assets and intangible assets)

    CAPEX (non-current assets and intangible assets) (excluding allowances for emission of CO2) INVESTMENT [m PLN] EXPENDITURE [m PLN] 126 124 112 99 1Q 2015 1Q 2014 1Q 2015 1Q 2014 23

  24. Slide 24: Employment

    Employment [staff time] BY SEGMENTS TOTAL 3.000 7.147 7.254 2.000 1.000 - GENERATION MINING RENOVATION OTHER 31-03-2015 31-12-2014 31-03-2015 31-12-2014 Changes in employment structure by segments are caused by restructure operations dedicated especially to mining segment. Due to optimise the struct

  25. Slide 25: Questions and Answers

    Questions and Answers 25

  26. Slide 26: Disclaimer

    Disclaimer This presentation serves for information purposes only and should not be treated as investment- related advice. This presentation has been prepared by Zespół Elektrowni Pątnów-Adamów-Konin S.A. (“the Company”). Neither the Company nor any of its subsidiaries shall be held accountable for

Zespół Elektrowni Pątnów-Adamów-Konin — Q1 2015 Earnings Presentation on 6ix