ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Q2 2005 Earnings Presentation
25 slides from ORLEN Spolka Akcyjna's earnings presentation, Sep 29, 2005
Slide 1: Consolidated financial results of PKN ORLEN S.A. Q2'2005
Consolidated financial results of PKN ORLEN S.A. Effect of Unipetrol consolidation Q2’2005 (IFRS)1 Paweł Szymański, CFO September 29th 2005 1) Consolidation of Unipetrol results for operating period as of June. Purchase of Unipetrol was closed as of 24th May 1
Slide 2: Agenda
Agenda Transaction summary of Unipetrol Summary of financial results and macroeconomic environment Financial results Q2’05 Supporting slides 2
Slide 3: Unipetrol transaction presented in the condensed consolidated financial statement
Unipetrol transaction1 presented in the condensed consolidated financial statement of PKN ORLEN for Q2’05, September 29th, 2005. August 16th, 2005 – condensed September 29, 2005 – consolidated financial statement of PKN ORLEN preliminary consolidated financial statement Unipetrol Group is fully co
Slide 4: Unipetrol transaction: preliminary results of acquisition of 62.99%
Unipetrol transaction1 presented in the condensed consolidated financial statement of PKN ORLEN for Q2’05, September 29th, 2005. Preliminary results of the acquisition of 62.99% of Unipetrol, reflected in PKN ORLEN financials after Q2’05 2 Preliminary estimate of fair value of the purchased assets a
Slide 5: Agenda
Agenda Transaction summary of Unipetrol Summary of financial results and macroeconomic environment Financial results Q2’05 Supporting slides 5
Slide 6: Financial results Q2'2005 PKN ORLEN Group
Financial results Q2’2005 PKN ORLEN Group Key financial data Q2’2005 Key operating data Q2’2005 z ROACE1,2 50.7% ROACE2 (exl. negative goodwill) 13.2% z Wholesale volume sales4 + 22.9% Q2’05/Q2’04 z EBITDA2 3 038 mln PLN EBITDA2 (exl. negative goodwill) 1 033 mln PLN z Retail volume sales5 + 3.1% Q2
Slide 7: Macroeconomic environment
Macroeconomic environment April 01, up to September 23, 2005 Exchange rate average1 Refinery margin $5.6/b average 01.04.05 – 23.09.05 Decrease of 3% y-o-y 5,0 PLN/USD PLN/EUR 16 Q2'05 2 2 PLN/USD 2005 E PLN/EUR 2005 E Q2'04 14 2005 E2 4,5 12 4,0 10 8 3,5 6 4 3,0 2 After Q2’05 After Q2’05 2,5 0 1-Ap
Slide 8: EBITDA and ROACE Q2'05 vs. Q2'04
EBITDA and ROACE Q2’05 vs. Q2’041,2 Visible one-off effect due to negative goodwill EBITDA (m PLN) ROACE (%) (in comparable market enviroment)1 (in comparable market enviroment)1 3 038 50,1 3000,0 50,0 2500,0 Negative 40,0 goodwill Negative 2000,0 goodwill 30,0 1500,0 20,0 1000,0 954 1 033 500,0 10,
Slide 9: Agenda
Agenda Transaction summary of Unipetrol Summary of financial results and macroeconomic environment Financial results Q2’05 Supporting slides 9
Slide 10: Revenues by segment
Revenues by segment Doubling of petrochemical revenues due to Unipetrol consolidation Q2'05 exl. VI.'05 IFRS basis, PLN m Q2' 04 Q2'05 y/y Comment Unipetrol Unipetrol 1 Revenue total 7 473 8 400 1 607 9 955 33% of which zExcluding internal flows between Refining2) 3 362 4 244 692 4 884 45% Unipetrol
Slide 11: Expenses
Expenses Operating costs grew by less than revenues Q2'05 exl. VI'05 IFRS basis, PLN m Q2'04 Q2'05 y/y Comment Unipetrol Unipetrol Raw m aterials and energy 2 967 3 600 980 4 528 52,6% z Increase of raw materials and energy Costs of goods for resale 2 652 2 530 377 2 907 9,6% by 52.6% as a result of
Slide 12: Operating profit by segment
Operating profit by segment Visible improvement in results across all core business segments Q2'05 e xcl. V I'05 IFRS basis, PLN m Q2'04 Unipe trol Unipe trol Q2'05 Comment Operating profit 587 640 64 2 709 zThe operating profit was of which: strongly affected by negative Refining 1 563 778 50 1 491
Slide 13: Profit and loss account
Profit and loss account Effect of Unipetrol consolidation as of VI’05 Q2'05 excl. VI'05 IFRS, PLN m Q2'04 Unipetrol Unipetrol 1 Q2'05 y/y Comment Revenues 7 473 8 400 1 607 9 955 33,2% z Contribution of June Cost of sales -5 940 -6 617 -1 505 -8 071 35,9% Unipetrol results Distribution costs -519 -5
Slide 14: Net profit strongly affected by one-off items
Operating profit increase1) strongly affected by one-off items 2Q’04 2Q’05 In m PLN 2 500 Financial income due to discount on receivables of Unipetrol companies Negative goodwill 2 000 Of which mainly dividend 2 005 from Polkomtel of 83 m PLN 1 500 2 718 6 51 11 3 1 000 204 86 64 53 (199) 500 (117)
Slide 15: Refining segment
Refining segment1) Increase in operating efficiency and exploitation of favourable macroeconomic conditions In m PLN Q2’05 Q2’04 1400 1200 58 35 20 663 1000 (6) 50 (9) 180 (45) 800 1 491 Result of light product sales (139) 217 increase (96) 600 External environment Negative goodwill 400 supports ope
Slide 16: Retail segment
Retail segment Improvement due to efficiency programme and lower provisions In m PLN 2Q’04 2Q’05 Focus on margin 230 maximization Main reason for last year’s loss was due to Orlen Deutschland’s Negative goodwill net asset revaluation attributed to 180 other operating cost 161 130 244 5 1 9 1 80 29 (
Slide 17: Petrochemical segment
Petrochemical segment Profit increase despite planned stoppage of olefin unit (modernization) 2Q’04 2Q’05 In m PLN 1200 Negative goodwill Favourable environment. Higher cracks on main 1000 petrochemical products Mainly due to planned maintenance shutdown of 800 1 077 the olefin unit 1 296 600 41 23
Slide 18: Legal disclaimer
Legal disclaimer This presentation of the consolidated financial and operating results (“Presentation”) has been prepared by PKN ORLEN (“the Company”). Neither the Presentation nor any copy hereof may be copied, distributed or delivered directly or indirectly to any person for any purpose without th
Slide 19: Contact
Contact For more information please contact our IR Office: Press Office: phone: + 48 24 365 33 90 phone: + 48 24 365 41 50 fax: + 48 24 365 56 88 + 48 22 695 34 57 e-mail: ir@ORLEN.pl fax: + 48 22 695 35 27 e-mail: media@ORLEN.pl www.orlen.pl 19
Slide 20: Agenda: supporting slides
Agenda Transaction summary of Unipetrol Summary of financial results and macroeconomic environment Financial results Q2’05 Supporting slides z Capex in Q2’2005 z Selected financial data of Unipetrol Group z Polyolefin production development in BOP z Petrochemical market – summary of the environment
Slide 21: Investments in 2Q'05
Investments in 2Q’05 Focus on petrochemical activity Capex in 2Q’2005 and Unipetrol investment as of June 2005 In m PLN 11 300 Q2’04 Q2’05 250 VI”05 , Unipetrol 200 3 150 259 272 100 4 5 126 50 93 73 48 50 27 0 Refinery Reta il Petrochemical Others 21
Slide 22: Selected financial data of Unipetrol Group
Selected financial data of Unipetrol Group Consolidated financial results 2003-2005 (IFRS)1 Selected financial data; I-VI’03 VI-XII’03 2003 I-VI’04 VI-XII’2004 2004 I-VI’05 in th. CZK Total assets 69 025 339 70 518 835 70 518 835 71 534 101 71 894 387 71 894 387 78 318 284 Equity 28 490 687 27 709 2
Slide 23: Summary subsidiary results of Unipetrol Group
Summary subsidiary results of Unipetrol Group Financial data from the period of 2003-2005* In th. CZK I-VI’03 VI-XII’03 2003 I-VI’04 VI-XII’2004 2004 I-VI’05 Chemopetrol a.s. Revenues 10 257 465 8 113 334 18 370 799 12 537 040 14 934 326 27 471 366 14 638 723 EBITDA 1 248 554 487 001 1 735 555 1 930
Slide 24: Polyolefin production development in BOP
Polyolefin production development in BOP Utilization of growing market demand by PKN ORLEN Group Capacity (tonnes per year) New installation start-up process Activity To date after launch of new installations In September technological start-up process is conducted for BOP new installation. 360,00
Slide 25: Petrochemical market
Petrochemical market From April 1st 2004 to September 23rd 2005 Ethylene; in EUR/ton Propylene ; in EUR/ton 800 800 700 700 600 600 500 500 400 362 400 310 307 300 262 300 254 273 257 230 172 180 193 191 200 122 200 122 100 100 0 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 0 Jan-04 Apr-04 Jul-0