Tauron Polska Energia S.a. · GPW:TPE

Tauron Polska Energia — Q3 2011 Earnings Presentation

36 slides from Tauron Polska Energia's earnings presentation, Nov 9, 2011

  1. Slide 1: TAURON Group Results for Q1-3 2011

    9 November 2011 TAURON Group Results for Q1-3 2011

  2. Slide 2: Disclaimer

    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 its subsidiaries shall be held accountable for any damage resulting fro

  3. Slide 3: Key Events

    Key Events 25 July Signing a contract for supply and purchase of energy carriers, gas fuels and other products between EC Nowa and ArcelorMittal (current report No. 42/2011) 23 August Concluding a preliminary agreement with Vattenfall AB for purchase of shares of Górnośląski Zakład Elektroenergetycz

  4. Slide 4: Electric energy market price trends

    Electric energy market price trends Electric energy Platforms: 2010 2011 2011/2010 TGE, TFS, GFI, Price Volume Price Volume Price Volume GPW-POEE PLN/MWh GWh PLN/MWh GWh % % Forward BASE (Y+Q+M) 186.26 37 034 195.23 105 844 +4.8% +185.8% Forward PEAK (Y+Q+M) 208.22 4 432 218.81 14 604 +5.1% +229.5%

  5. Slide 5: Group restructuring – Q1-3 2011

    Group restructuring – Q1-3 2011 Ownership structure rearrangement Business model implementation  Sale of assets unrelated to the core operation for the total sum of  Processes of merger of assets in the Group business areas and PLN 11.5 million, including: registration of the following companies i

  6. Slide 6: Implementation of investment programme

    Implementation of investment programme ZEC Bielsko-Biała – new heating unit Elektrociepłownia Tychy – new CHP unit and fluidized bed boiler reconstruction (biomass burning)  Capacity – 50 MW e / 182 MW t  Scheduled commissioning – mid 2013  Capacity – 50 MW e / 86 MW t  Scheduled commissioning –

  7. Slide 7: Implementation of investment programme (2)

    Implementation of investment programme (2) Elektrownia Stalowa Wola – new gas and steam unit Wind farm – Wicko  Capacity – 400 MW e / 240 MW t  Commencement of the project – 2010; scheduled  Capacity – 40 MW e commissioning – 1st half of 2015  Scheduled commissioning – 2013 Status as of 30 Septe

  8. Slide 8: Implementation of investment programme (3)

    Implementation of investment programme (3) Elektrownia Jaworzno III – modernization of boilers Elektrownia Jaworzno III – new coal-fired unit  Scope – adjustment of six OP-650k type boilers to lower  Capacity – 910 MW e nitrogen oxides emission standards which will be binding in  Scheduled commis

  9. Slide 9: Investment expenditure

    Investment expenditure PLN million 1 401 1 600 28 1 400 17 1 200 865 62% 1 000 665 22 800 19 27 600 488 400 558 23 200 243 70 105 0 Q1-3 2010 Q1-3 2011 Mining Generation RES Distribution Supply Other  In Q1-3 2011 the TAURON Group invested over PLN 1.4 billion, almost 90% of which constituted expen

  10. Slide 10: Key operational data

    Key operational data Q3 Q3 Change Change Q1-3 2010 Q1-3 2011 2010 2011 (dynamics) (dynamics) Production of commercial coal 1.17 1.18 0.9% 3.38 3.78 11.8% (million tons) Electricity generation 5.33 5.09 -4.5% 15.54 16.30 4.9% (net production) (TWh) Including RES (TWh) 0.32 0.31 -4.3% 0.85 0.77 -9.8%

  11. Slide 11: Financial results for Q1-3 2011

    Financial results for Q1-3 2011 TAURON Group's revenues [PLN million] TAURON Group's EBITDA by segments [PLN million]; EBITDA structure [%] 15 167 2 159 2 371 16 000 2 500 9.8% 3% 14 000 3% 9% 38.5% 3 297 2 000 12% 12 000 10 951 41% 1 500 37% 10 000 8.4% 1 000 4% 4% 8 000 500 43% 40% 6 000 11 870 4

  12. Slide 12: Financial results for Q3 2011

    Financial results for Q3 2011 TAURON Group's EBITDA by segments [PLN million]; TAURON Group's revenues [PLN million] EBITDA structure [%] 800 736 6 000 690 1% 1% 10% 4 836 6% 6.7% 5 000 600 31.0 1 052 43% 45% 4 000 3 691 400 2.5% 4% 3 000 6% 200 44% 2 000 36% 3 784 0 4% 4% 1 000 -3.2% -2.4% Q3 2010

  13. Slide 13: Financial results for Q1-3 2011 - EBITDA

    Financial results for Q1-3 2011 - EBITDA Changes in EBITDA by segments (PLN million and %), EBITDA margin per segment (%) 19.7% 15.6% 13.0% 19.6% 73.9% 29.6% 2.2% 13.2% - 20.0% 2 500 6.6 1.2 1.4 2 371 164.0 .6,4 2 159 28.7 -27.3 2 000 41% -3% 35% 19% 3% 2% 1 500 1 000 1 321 1 128 500 0 EBITDA Mining

  14. Slide 14: Financial results for Q1-3 2011 - EBIT

    Financial results for Q1-3 2011 - EBIT Change in EBIT vs. operational factors (PLN million); EBIT margin (%) 8.7% 10.3% 11.1% 1 400 88 9 1 321 70 118 1 200 1 128 39 52 -111 1 000 -73 800 600 400 200 0 EBIT Q1-3 2010 Energy supply Energy supply prices Energy purchase Revenues from LTC Revenues from s

  15. Slide 15: Changes in cash flow level

    Changes in cash flow level Cash – changes in the period of Q1-3 2011 4 000 1 049 3 500 (412) (139) 3 000 1 281 2 500 1 780 (1 679) 2 000 87 1 472 (1 519) 1 500 (160) (688) (399) 1 000 885 (263) (114) 500 0 PLN million Increase Decrease 14

  16. Slide 16: Group’s debt

    Group’s debt Net financial debt (PLN million), net financial debt/EBITDA (x) 0.3x 0.01x -0.02x* 0.16x* 2 000 1 899 1 492 1 474 1 500 1 320 1 376 1 321 1 032 885 1 000 500 0 31.12.2009 31.12.2010 30.06.2011 30.09.2011 financial debt cash net financial debt/ EBITDA * In relation to EBITDA value for 20

  17. Slide 17: Compensation due to termination of Long-Term Contracts

    Compensation due to termination of Long-Term Contracts Revenue from compensation 484 -9.5% 438 180 164 160 145 145 147 140 129 120 108 100 95 88 80 74 73 60 40 30 20 0.8% 4.5% 5.0% 4.0% 1.9% 4.2% 3.5% 2.0% 1.4% 1.9% 2.2% 0 1Q 2009 2Q 2009 3Q 2009 4Q 2009 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 20

  18. Slide 18: Prime costs structure

    Prime costs structure mln zł Prime costs structure 7 023 8 000 6 761 1% 7 000 1% 6 000 26% 27% 5 000 7% 6% 4 000 21% 23% 3 000 2 000 28% 30% 1 000 15% 15% 0 Q1-3 2010 Q1-3 2011 Depreciation and impairment Use of consumables and energy Outsourced services Taxes and other charges Employee benefits cos

  19. Slide 19: Efficiency improvement programme

    Efficiency improvement programme TAURON Group implements cost efficiency improvement plan GENERATION – result in Q3 2011: – PLN 59 million; DISTRIBUTION – result in Q3 2011: – PLN 11 million cumulated result since programme implementation– PLN 369 cumulated result since programme implementation – mi

  20. Slide 20: Implementation of the efficiency improvement programme

    Implementation of the efficiency improvement programme PLN 1 Efficiency improvement programme 2010-2012 billion PLN million cumulated OPEX savings 428 1 000 800 144 9 600 369 8 400 200 42 0 Mining Generation RES + Other Distribution Supply Savings to be Savings plan 2010- achieved 2012 30.09.2011 19

  21. Slide 21: Key directions of development and growth

    Key directions of development and growth  Continuation of costs efficiency improvement programme Increased  Achieving synergies from integration of areas Group’s value  Commencement of integration with GZE group following concluding of transaction with Vattenfall  Implementing and execution of l

  22. Slide 22: Thank You – Q&A

    Thank You — Q&A oN # TAURON POLSKA ENERGIA 21

  23. Slide 23: TAURON Polska Energia S.A. Investor Relations contacts

    TAURON Polska Energia S.A., ul. Lwowska 23, 40-389 Katowice tel. +48 32 774 27 06, fax +48 32 774 25 24 Investor Relations Section Marcin Lauer marcin.lauer@tauron-pe.pl tel. (32) 774 27 06 Paweł Gaworzyński pawel.gaworzynski@tauron-pe.pl tel. (32) 774 25 34 Magdalena Wilczek magdalena.wilczek@tauro

  24. Slide 24: Additional Information

    Additional Information oN # TAURON POLSKA ENERGIA 23

  25. Slide 25: BASE 2011 transactions

    BASE 2011 transactions 215 Base 2011 contract prices 210 205 Price [PLN/MWh] 200 195 190 185 180 175 2009-02-16 2009-06-16 2009-10-14 2010-02-11 2010-06-11 2010-10-09 2011-02-06 2011-06-06 2011-10-04 Y-11 Q1-11 Q2-11 Q3-11 Q4-11 Average price of concluded transactions [PLN/MWh]: Volume [GWh] Yearly

  26. Slide 26: PEAK 2011 transactions

    PEAK 2011 Transactions 234 PEAK 2011 contract prices 229 224 Price [PLN/MWh] 219 214 209 204 2010-03-13 2010-06-11 2010-09-09 2010-12-08 2011-03-08 2011-06-06 2011-09-04 Y-11 Q1-11 Q2-11 Q3-11 Q4-11 Average price of concluded transactions [PLN/MWh]: Volume [GWh] Yearly 218.94 12 172 Quarterly 220.37

  27. Slide 27: BASE 2012 transactions

    BASE 2012 transactions PLN/MWh Yearly contracts BASE Y-12 GWh 211 4 000 210.00 208 3 500 3 000 205 202.81 2 500 202 2 000 199 1 500 196 1 000 193 500 192.00 190 0 2010-02-24 2010-05-19 2010-08-11 2010-11-03 2011-01-26 2011-04-20 2011-07-13 2011-10-05 Volume [GWh] Wolumen [GWh] Ceny Y-12notowań Y-12

  28. Slide 28: PEAK 2012 transactions

    PEAK 2012 transactions PLN/MWh Yearly contracts PEAK Y-12 GWh 233 232.50 1 400 232 1 200 231 230 1 000 228.97 229 800 228 600 227 400 226 200 225 224.65 224 0 2011-01-20 2011-02-27 2011-04-06 2011-05-14 2011-06-21 2011-07-29 2011-09-05 2011-10-13 Volume [GWh] Wolumen [GWh] Ceny notowań Y-12 Y-12 tra

  29. Slide 29: BASE 2013 transactions

    BASE 2013 transactions PLN/MWh Yearly contracts BASE Y-13 GWh 224 1 000 222.00 900 222 800 220 700 218 600 216.80 216 500 400 214 300 212 200 210 208.90 100 208 0 2011-01-12 2011-02-16 2011-03-23 2011-04-27 2011-06-01 2011-07-06 2011-08-10 2011-09-14 2011-10-19 Wolumen Volume [GWh] Ceny Y-12 notowań

  30. Slide 30: PEAK 2013 transactions

    PEAK 2013 transactions PLN/MWh Yearly contracts PEAK Y-13 GWh 245,5 200 245.50 180 160 140 245.31 120 245,3 100 80 60 245.12 40 20 245,0 0 2011-10-14 2011-10-16 2011-10-18 2011-10-20 2011-10-22 Wolumen [GWh] Volume [GWh] Ceny Y-12notowań Y-13 transaction prices Średnia Averagecena price Average pric

  31. Slide 31: Mining – key financial data

    Mining – key financial data Change: Revenue EBITDA EBIT in the segment (PLN million) 1200 350 309 961 300 289 1000 809 250 800 200 600 150 400 100 200 88 125 50 28 27 48 3 4 8 0 0 Q1-3 2010 Q1-3 2011 Q3 2010 Q3 2011 30

  32. Slide 32: Generation from conventional sources – key financial data

    Generation from conventional sources – key financial data Change: Revenue EBITDA EBIT in the segment (PLN million) 5 000 4 650 1 600 1 470 1 362 4 500 4 074 1 400 4 000 1 200 3 500 1 000 3 000 2 500 800 2 000 600 1 500 937 910 400 304 254 1 000 527 166 484 200 107 500 0 0 Q1-3 2010 Q1-3 2011 Q3 2010

  33. Slide 33: Generation from renewable sources – key financial data

    Generation from renewable sources – key financial data Change: Revenue EBITDA EBIT in the segment (PLN million) 160 151 70 140 60 58 120 120 112 50 44 44 100 93 83 40 37 80 66 30 30 60 23 40 20 20 10 0 0 Q1-3 2010 Q1-3 2011 Q3 2010 Q3 2011 32

  34. Slide 34: Distribution – key financial data

    Distribution – key financial data Change: Revenue EBITDA EBIT in the segment (PLN million) 4 000 1 200 1 096 1 102 3 325 3 412 3 500 1 000 3 000 2 500 800 2 000 600 1 500 347 1 011 400 298 1 000 847 521 184 366 200 138 500 0 0 Q1-3 2010 Q1-3 2011 Q3 2010 Q3 2011 33

  35. Slide 35: Supply – key financial data

    Supply – key financial data Change: Revenue EBITDA EBIT in the segment (PLN million) EBIT and EBITDA – comparable data* 12 000 12 000 9 983 9 983 10 000 10 000 8 693 8 693 8 000 8 000 6 000 6 000 4 000 4 000 2 000 2 000 211 206 218 211 158 152 218 211 0 0 Q1-3 2010 Q1-3 2011 Q1-3 2010 Q1-3 2011 3 50

  36. Slide 36: Other – key financial data

    Other – key financial data Change: Revenue: EBITDA EBIT in the segment segmencie (PLN million) 450 405 404 400 100 89 350 86 300 80 250 60 200 150 40 100 52 53 20 50 20 10 9 15 0 0 Q1-3 2010 Q1-3 2011 -3 -2 -20 Q3 2010 Q3 2011 35

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