Ze Pak Sa · GPW:ZEP

Ze Pak Sa — Zespół Elektrowni „Pątnów-Adamów-Konin” — Q3 2015 Earnings Presentation

27 slides from Ze Pak Sa's earnings presentation, Nov 13, 2015

  1. Slide 1: 3Q'2015 Results

    13 November 2015 Zespół Elektrowni „Pątnów-Adamów-Konin” S.A. 3Q’2015 Results

  2. Slide 2: 3Q 2015 Summary

    3Q 2015 Summary [3Q2015/3Q2014] • Background: • ZE PAK Group: – Lower electricity prices on – 16,5% lower [ie. 0,43 TWh] (1) sale exchange market (decrease of of electricity from own production. weighted average of IRDN from – 63,7% higher [ie. 0,55 TWh] sale of 196,52 PLN/MWh electricity from resal

  3. Slide 3: Selected Energy Market Data

    SELECTED ENERGY MARKET DATA 3

  4. Slide 4: EUA and green certificates of origin - 9 months of 2014 and 2015

    100 PLN 150 200 250 300 0 50 3,00 4,00 5,00 EUR 6,00 7,00 8,00 9,00 2-Jan 2-Jan 12-Jan 12-Jan 22-Jan 22-Jan 1-Feb 1-Feb 11-Feb EUA prices 2014 and 2015 11-Feb 21-Feb 21-Feb 3-Mar 3-Mar 13-Mar 13-Mar 23-Mar 23-Mar PMOZE_A green certificates 2-Apr 2-Apr 12-Apr 12-Apr 22-Apr 22-Apr 2-May 2-May 12-May 1

  5. Slide 5: Daily demand for electricity and IRDN prices

    MWh PLN/MWh 300 000 350 000 400 000 450 000 500 000 550 000 90 140 190 240 290 340 390 440 1-Jan 1-Jan 11-Jan 11-Jan 21-Jan 21-Jan 31-Jan 31-Jan 10-Feb 10-Feb 20-Feb 20-Feb 2-Mar 1-Mar 12-Mar 11-Mar 22-Mar 21-Mar IRDN prices 1-Apr 31-Mar 10-Apr months of 2014 and 2015 11-Apr 21-Apr 20-Apr 1-May 30-A

  6. Slide 6: Base load prices for 2016

    zł/MWh 150 155 160 165 170 175 180 185 2-Jan 12-Jan 22-Jan (BASE_Y-16) 1-Feb 11-Feb 21-Feb 3-Mar 13-Mar 23-Mar 2-Apr 12-Apr „Base load” prices for 2016 22-Apr 2-May 12-May 22-May 1-Jun 11-Jun 21-Jun 1-Jul 11-Jul Base load prices BASE_Y-16 since 01.01.2015 to 30.09.2015 21-Jul 31-Jul 10-Aug 20-Aug 30

  7. Slide 7: Operational Data

    OPERATIONAL DATA 7

  8. Slide 8: Net production and sale of electricity

    Net production and sale of electricity [TWh] NET PRODUCTION SALE 10,78 10,16 7,78 3,87 2,38 6,91 1,97 1,68 0,45 0,48 2,18 2,37 7,78 6,91 2,58 2,98 9M 2015 9M 2014 9M 2015 9M 2014 Pątnów II Konin Adamów Pątnów I Total Own production from resale Total 3,58 3,46 2,59 0,87 2,16 1,42 0,70 0,43 0,13 0,17

  9. Slide 9: Lignite consumption and CO2 emissions

    Lignite consumption and CO2 emissions [mln ton] LIGNITE CONSUMPTION EMISSION OF CO2 10,35 9,60 9,55 9,00 3,33 2,07 3,16 1,78 7,03 7,21 7,53 6,39 9M 2015 9M 2014 9M 2015 9M 2014 KWBA KWBK Total Pątnów II ZE PAK Total 3,38 3,17 3,04 3,02 1,13 0,47 0,73 1,16 2,24 2,55 2,45 1,88 3Q 2015 3Q 2014 3Q 2015

  10. Slide 10: Financial Data

    FINANCIAL DATA 10

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

    Consolidated P&L (1/2) [m PLN] 9M 2015 9M 2014 3Q 2015 3Q 2014 Sales revenue 2 255 1 971 747 627 Change % 14,41% 19,14% Cost of goods sold (2 123) (1 749) (699) (607) Gross profit 132 223 48 19 Margin % 5,85% 11,31% 6,43% 3,03% Other operating income 15 28 4 17 Selling and distribution expenses (3)

  12. Slide 12: EBITDA changes

    EBITDA changes [m PLN] + 89 + 112 + 26 + 103 - 21 390 - 12 - 136 338 - 213 EBITDA Volume sold Electricity Green LTC (1) Other CO2 emission Administrative Other (2) EBITDA 9M 2014 price certificates compensation income costs expenses expenses 9M 2015 + 82 + 32 - 24 + 10 + 21 114 80 -4 - 65 - 19 EBITD

  13. Slide 13: Consolidated P&L (2/2)

    Consolidated P&L (2/2) [m PLN] 9M 2015 9M 2014 3Q 2015 3Q 2014 EBIT 54 119 20 (11) Finance income 8 11 (4) 2 Finance costs (35) (40) (9) (13) Profit before tax 26 90 7 (22) Income tax (5) (17) (1) 3 (taxation) Effective tax rate % 19,23% 18,89% 14,29% 13,64% Net profit for the period 21 72 6 (19) Ma

  14. Slide 14: Consolidated P&L for 9M 2015 by segments

    Consolidated P&L for 9M 2015 by segments Consolidation m PLN Generation Mining Renovation Sales Other adjustments Total Sales revenue from 1 330,9 6,2 117,3 794,0 6,4 - 2 254,8 external customers External sales revenue % 79,8% 0,9% 32,7% 100,0% 6,6% 100,0% Sales revenue between 337,8 664,3 241,0 - 9

  15. Slide 15: EBITDA by segments (1/2)

    EBITDA by segments (1/2) [m PLN] GROUP GENERATION 246,6 MINING 118,3 390,0 103,8 337,7 197,9 63,4 270,7 204,2 283,8 87,0 191,7 54,9 119,3 53,9 6,2 42,4 16,8 9M 2015 9M 2014 9M 2015 9M 2014 9M 2015 9M 2014 D&A EBIT EBITDA D&A EBIT EBITDA D&A EBIT EBITDA RENOVATION SALE OF ELECTRICITY 8,6 OTHER 0,1 5,

  16. Slide 16: Consolidated P&L for 3Q 2015 by segments

    Consolidated P&L for 3Q 2015 by segments Consolidation m PLN Generation Mining Renovation Sales Other adjustments Total Sales revenue from 426,5 3,0 32,5 282,4 2,8 - 747,3 external customers External sales revenue % 78,0% 1,3% 28,4% 100,0% 8,4% 100,0% Sales revenue between 120,6 218,9 81,9 - 30,9 (4

  17. Slide 17: EBITDA by segments (2/2)

    EBITDA by segments (2/2) [m PLN] MINING 114,3 GROUP GENERATION 34,7 33,0 79,9 65,6 94,1 67,1 28,4 22,0 90,6 64,3 1,3 30,9 10,9 20,2 6,3 -10,7 3Q 2015 3Q 2014 3Q 2015 3Q 2014 3Q 2015 3Q 2014 -36,2 D&A EBIT EBITDA D&A EBIT EBITDA D&A EBIT EBITDA RENOVATION SALE OF 3,2 OTHER 14,8 3,7 0,5 ELECTRICITY 0,

  18. Slide 18: Revenues

    Revenues [m PLN] 1 290 9M 2015 1 219 9M 2014 684 398 137 111 114 39 49 48 43 40 22 32 (1) Sale of electricity Resale of Certificates of LTC Heat sale Construction Other from own electricity from origin compensation services production the market 438 3Q 2015 388 3Q 2014 251 147 15 48 30 43 11 10 9 9

  19. Slide 19: 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) 9M 2015 9M 2014 Balancing Balancing market market 6,2% 4,4% Top 5 Top 5 customers Bilateral customers 39,4% contracts 49,7% 44,0% Bilateral contracts Other Other 53,2% 60,6% 50,3% Polish P

  20. Slide 20: Electricity sales

    Electricity sales Electricity sale(1) Average sale price(2) Revenues [TWh] [PLN/MWh] [m PLN] +6,1% +6,2% +12,7% 9M 2015 9M 2015 9M 2015 10,78 176,55 1 903 9M 2014 10,16 9M 2014 166,20 9M 2014 1 688 +3,7% +5,4% +9,2% 3Q 2015 3Q 2015 3Q 2015 3,58 178,25 639 3Q 2014 3,46 3Q 2014 169,19 3Q 2014 585 (1)

  21. Slide 21: Cost by type

    Cost by type [m PLN] 675 9M 2015 9M 2014 428 409 391 326 347 284 271 233 108 124 123 130 (1) 88 54 22 Materials D&A Employee Cost of goods, External Taxes and fees CO2 emission Other benefits and raw materials services (excluding costs other for resale and excise duty) allowances energy for resale 3

  22. Slide 22: Employment

    Employment [staff time] BY SEGMENTS TOTAL 3 000 7 254 7421 6 928 2 000 1 000 - GENERATION MINING RENOVATION OTHER 30.09.2015 31.12.2014 30.09.2015 31.12.2014 30.09.2014 30.09.2014 Changes in employment structure by segments are caused by restructure operations dedicated especially to mining segment.

  23. Slide 23: Consolidated statement of financial position

    Consolidated statement of financial position [mln PLN] 30.09.2015 31.12.2014 3783 Equity 3820 Equity Non current Non current assets assets 5649 5686 Current Non current Current Non current assets (1) liabilities assets (1) liabilities Current liabilities Current liabilities Cash and cash 1811 Cash a

  24. Slide 24: Net debt

    Net debt Net debt [m PLN] Net debt / EBITDA 30.09.2015 31.12.2014 30.09.2015 (1) 2,20 31.12.2014 1,57 1 306 1 248 (1) EBITDA annualized 1 002 (2) Cash and cash equivalents from 797 Consolidated statement of financial position and other short- term financial assets -304 -451 (2) Cash and cash equvale

  25. Slide 25: Consolidated Cash Flow

    Consolidated Cash Flow [m PLN] 9M 2015 9M 2014 3Q 2015 3Q 2014 Profit/loss before taxation 26,5 89,9 7,2 (21,8) Depreciation and amortization 274,3 269,5 90,9 90,1 Profit/loss on investing and financial activities 19,3 23,1 10,4 8,4 Changes in working capital 84,1 104,4 82,5 122,7 Income tax 6,7 (7,

  26. Slide 26: CAPEX (non-current assets and intangible assets)

    CAPEX (non-current assets and intangible assets) (excluding CO2) INVESTMENT [m PLN] EXPENDITURE [m PLN] 520 445 343 316 116 153 122 64 9M 2015 9M 2014 3Q 2015 3Q 2014 9M 2015 9M 2014 3Q 2015 3Q 2014 26

  27. Slide 27: 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” — Q3 2015 Earnings Presentation on 6ix