TAURON Polska Energia S.A. · GPW:TPE
TAURON Polska Energia — H1 2016 Earnings Presentation
31 slides from TAURON Polska Energia's earnings presentation, Aug 18, 2016
Slide 1: TAURON Group's H1 2016 Financial Results
TAURON Group’s H1 2016 Financial Results August 18, 2016
Slide 2: H1 2016 key data
H1 2016 key data TAURON Group’s H1 2016 results [PLN m] H1 2016 / H1 2015 Sales revenue 8 943 (3)% EBITDA 1 653 (13)% Net profit* 3 (99,5)% CAPEX 1 452 (18)% up 0.61x Net debt/EBITDA 2.58x (vs 30.06.2015) H1 2016 operating data H1 2016 / H1 2015 Commercial coal production [t m] 2.48 23%** Electricit
Slide 3: Q2 2016 key data
Q2 2016 key data TAURON Group’s Q2 2016 results [PLN m] Q2 2016 / Q2 2015 Sales revenue 4 296 (4)% EBITDA 780 (13)% Net profit* (320) - CAPEX 798 (18)% up 0.61x Net debt/EBITDA 2.58x (vs 30.06.2015) Q2 2016 operating data Q2 2016 / Q2 2015 Commercial coal production [t m] 1.27 22%** Electricity gene
Slide 4: Highlights summary
Highlights summary EC Stalowa Wola terminates the agreement with Abener Energia – the general contractor of the CCGT unit at Stalowa Wola. January 29 Termination cause: breach of the schedule and of the material technical provisions of the contract Adoption of the 2016-2018 efficiency improvement pr
Slide 5: Macroeconomic and market situation
Macroeconomic and market situation Poland’s GDP growth rate* and manufacturing PMI Increase of manufacturing production sold* and (quarterly average)** electricity consumption (change yoy)*** 5% 56 7% 6,0% 4,3% 6% 5,0% 5,3% 5,2% 55 5% 4,7% 4,5% 4,9% 3,9% 4,3% 3,7% 4% 3,7% 3,3% 3,6% 54 4% 3,1% 3,0% 2
Slide 6: H1 2016 key financial data
H1 2016 key financial data Sales revenue [PLN m] Net profit attributable to the parent company’s shareholders [PLN m] 10 000 9 257 8 943 689 800 762 other revenue 8 000 3 122 3 044 600 6 000 distribution and 339 commercial services 350 4 000 heat 400 719 5 107 4 787 2 000 electricty 200 3 0 0 H1 201
Slide 7: Q2 2016 key financial data
Q2 2016 key financial data Sales revenue [PLN m] Net profit attributable to the parent company’s shareholders [PLN m] 5 000 4 467 4 296 300 289 4 000 361 other revenue 200 1 521 1 458 216 100 3 000 distribution and 108 commercial services 0 112 2 000 heat -100 -320 -200 2 549 2 365 1 000 electricty
Slide 8: H1 2016 key segments results
H1 2016 key segments results [PLN m] Distribution Supply Generation Mining Segment’s revenue 3 145 6 987 2 343 512 EBITDA 1 148 280 354 (169) EBIT 644 274 (558) (231) CAPEX 744 1 600 91 PLN m Individual segments’ contribution to EBITDA [%] 2 500 1 908 1 653 2 000 3% 18% 4% Unassigned 17% 1 500 Other
Slide 9: Q2 2016 key segments results
Q2 2016 key segments results [PLN m] Distribution Supply Generation Mining Segment’s revenue 1 528 3 396 1 071 258 EBITDA 604 113 163 (104) EBIT 352 114 (648) (127) CAPEX 416 0 344 27 PLN m Individual segments’ contribution to EBITDA [%] 1 200 893 1 000 2% 780 16% 5% Unassigned 800 14% Other 600 Sup
Slide 10: H1 2016 EBITDA
H1 2016 EBITDA PLN m (13)% 2 500 20,6% (33,0)% 15,1% 36,5% 4,0% 15,4% - 18,5% 2 000 1 908 -11 1 653 864 5 15 -112 -95 1 500 -55 1 520 1 000 1 044 500 0 134 H1 2015 EBITDA Mining Generation Distribution Supply Other Unassigned items H1 2016 EBITDA EBIT Depreciation and write-offs Segment's increase S
Slide 11: Q2 2016 EBITDA
Q2 2016 EBITDA PLN m (13)% 1 400 20,0% (40,5)% 15,2% 39,5% 3,3% 16,8% - 18,2% 1 200 1 000 893 9 -25 780 18 6 800 -92 -28 600 400 200 0 Q2 2015 EBITDA Mining Generation Distribution Supply Other Unassigned items Q2 2016 EBITDA EBITDA Segment's increase Segment's decrease EBITDA margin 11 11
Slide 12: Mining – H1 2016
Mining – H1 2016 Financial data [PLN m] Change of EBITDA [PLN m] 0 600 542 512 500 -50 400 300 -100 200 146 -158 91 -150 86 -169 100 0 -200 -4 -158 -105 -100 -214 -157 -64 -64 43 -200 -74 -250 -19 -169 -3 -300 -231 8 H1 2015 H1 2016 -300 -58 Sales revenue TWD EBITDA NBGT EBITDA -350 TWD EBIT NBGT EB
Slide 13: Mining – Q2 2016
Mining – Q2 2016 Financial data [PLN m] Change of EBITDA [PLN m] 0 300 273 258 200 -50 86 100 86 27 -104 -100 -114 0 -7 -63 -85 -114 -142 -100 -42 -42 -150 -104 -127 - 42 32 -200 Q2 2015 Q2 2016 - 14 -200 -6 - 30 - 10 Sales revenue TWD EBITDA NBGT EBITDA -250 TWD EBIT NBGT EBIT CAPEX Q2 2015 NBGT re
Slide 14: Generation – H1 2016
Generation – H1 2016 Financial data [PLN m] Change of EBITDA [PLN m] 800 3 000 2 747 700 95 2 500 2 343 600 112 2 000 - 84 500 1 500 886 400 466 - 136 1 000 600 - 45 300 - 44 - 12 500 182 354 466 354 200 0 -500 H1 2015 H1 2016 100 -1 000 -558 0 H1 2015 EE variable RUS* / Margin on CO2 costs RES prop
Slide 15: Generation – Q2 2016
Generation – Q2 2016 Financial data [PLN m] Change of EBITDA [PLN m] 350 1 500 50 1 184 300 1 071 - 11 -6 1 000 250 59 462 200 - 63 500 344 - 18 44 150 188 - 23 188 163 - 13 163 0 Q2 2015 Q2 2016 100 -500 50 -648 -1 000 0 Q2 2015 EE variable RUS* / Margin on Electricity CO2 costs RES propertyRES pro
Slide 16: Distribution – H1 2016
Distribution – H1 2016 Financial data [PLN m] Change of EBITDA [PLN m] 1 400 1 243 24 19 6 1 148 1 200 8 3 500 3 228 3 145 -108 -28 -15 3 000 1 000 484 2 500 504 800 2 000 600 1 500 1 243 1 148 758 400 758 1 000 644 644 500 200 696 744 0 0 H1 2015 H1 2016 H1H1 2015 EBITDA 2015 Distribution services
Slide 17: Distribution – Q2 2016
Distribution – Q2 2016 Financial data [PLN m] Change of EBITDA [PLN m] 800 696 700 2 000 3 4 604 1 585 1 528 600 -55 -16 1 600 243 -25 -2 500 253 1 200 400 800 696 604 300 453 453 400 352 200 352 411 416 100 0 Q2 2015 Q2 2016 0 Price of Purchase of Cost of Other revenue Operating Other Q2 2016 EBITD
Slide 18: Supply – H1 2016
Supply – H1 2016 Financial data [PLN m] Change of EBITDA [PLN m] 350 335 5 71 9 000 8 094 280 300 330 0,2 6 987 6 7 000 - 30 -2 250 274 - 94 5 000 200 150 3 000 100 1 000 335 330 280 274 50 -1 000 H1 2015 H1 2016 0 Electricity sales Prices of Costs of the Trading fees Other H1 2015 EBITDA volume and
Slide 19: Supply – Q2 2016
Supply – Q2 2016 Financial data [PLN m] Change of EBITDA [PLN m] 150 3 916 37 4 000 3 396 141 - 15 -2 3 000 100 - 10 113 - 38 2 000 50 1 000 141 139 113 114 0 0 Q2 2015 EBITDA Electricity sales Prices of Costs of the property Trading fees Other Q2 2016 EBITDA Q2 2015 Q2 2016 volume and price propert
Slide 20: Debt and financing
Debt and financing TAURON Group’s debt maturity as of 30.06.2016 4 000 1 000 2 989 828 3 000 Net debt/EBITDA = 2.58x 800 2 019 600 2 000 400 853 1 000 743 200 339 74 166 187 288 281 261 200 130 25 28 25 39 115 100 - - 3Q 4Q 1Q 2Q 3Q 4Q 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Slide 21: 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 910 - 21 2019 III Power Plant Construction of the CCGT unit at Stalowa Wola 450 240 85 2018/2019* Combined Heat
Slide 22: CAPEX per segment
CAPEX per segment CAPEX per segment [PLN m] Key investment projects underway in H1 2016: Mining: construction of the 800 m level at Janina coal mine 1 771 (18)% (PLN 26m), 43 construction of the Grzegorz shaft at Sobieski coal 1 452 mine (PLN 17m) Nowe Brzeszcze Grupa TAURON (PLN 4m) 17 696 Ge
Slide 23: Efficiency improvement program
Efficiency improvement program Savings realized Savings planned Segment Progress % Main initiatives in H1 2016 in 2016-2018 Employment restructuring, reduction of labor costs and increasing their flexibility, organizational measures Mining PLN 77m PLN 255m 30% Use of electronic auctions in the p
Slide 24: 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 Magdalena Wilczek magdalena.wilczek@tauron.pl tel. + 48 32 774 25 38 24 24
Slide 25: 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
Slide 26: Electricity market price trends
Electricity market price trends Electricity 2015 2016 (until July 19, 2016) 2016/2015 (until July 19, 2016) Platforms: TGE, TFS, GFI, GPW-POEE Price (PLN/MWh) Volume (GWh) Price (PLN/MWh) Volume (GWh) Price % Volume % Forward BASE (Y+Q+M) 167.51 201 870 166.10 182 751 -1.0% -9.5% Forward PEAK (Y+Q+M
Slide 27: 2016 BASE contracts
2016 BASE contracts PLN/MWh Volume Price Average Average price Volume [GWh] [PLN/MWh] Total 166.47 147 923 TGE 166.12 115 729 including non TGE 167.70 32 193 Average electricity price that takes into account 2016 one year BASE and PEAK contracts: PLN 171.08/MWh, total 2016 BASE and PEAK volume: 164
Slide 28: 2017 BASE contracts
2017 BASE contracts PLN/MWh Volume Price Average Average price Volume [GWh] [PLN/MWh] Total 160.69 46 936 TGE 159.91 31 396 including non TGE 162.25 15 540 Average electricity price that takes into account 2017 one year BASE and PEAK contracts: PLN 163.85/MWh, total 2017 BASE and PEAK volume: 50 140
Slide 29: 2018 BASE contracts
2018 BASE contracts PLN/MWh Volume Price Average Average price Volume [GWh] [PLN/MWh] Total 158.68 5 484 TGE 158.34 3 171 including non TGE 159.15 2 313 Average electricity price that takes into account 2018 one year BASE and PEAK contracts: PLN 161.01/MWh, total 2018 BASE and PEAK volume: 5 722 GWh
Slide 30: Analysts covering TAURON
Analysts covering TAURON Institution Analyst Institution Analyst J.P. Morgan Cazenove Michał Kuzawiński IPOPEMA Sandra Piczak Raiffeisen Centrobank Teresa Schinwald DB Securities Tomasz Krukowski Renaissance Capital Vladimir Sklyar Dom Maklerski mBanku Kamil Kliszcz Krzysztof Societe Generale Bartło
Slide 31: Thank you for your attention
Thank you for your attention 31 31
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