TAURON Polska Energia S.A. · GPW:TPE
TAURON Polska Energia — Q1 2016 Earnings Presentation
25 slides from TAURON Polska Energia's earnings presentation, May 12, 2016
Slide 1: TAURON Group's Q1 2016 Financial Results
TAURON Group’s Q1 2016 Financial Results May 12, 2016
Slide 2: Q1 2016 key financial data
Q1 2016 key financial data TAURON Group’s Q1 2016 results [PLN m] Q1 2016/Q1 2015 Sales revenue 4 647 (3%) EBITDA 873 (14%) Net profit* 323 (36%) CAPEX 654 (17%) Up 0.3x Net debt/EBITDA 2.50x (vs 31.12.2015) Q1 2016 operating data Q1 2016/Q1 2015 Commercial coal production [t m] 1.21 25%** Electrici
Slide 3: Highlights summary
Highlights summary EC Stalowa Wola terminates the agreement with Abener Energia – the general contractor of the CCGT unit at Stalowa January 29 Wola. Termination cause: breach of the schedule and of the material technical provisions of the contract Information on the intention to recognize in the 20
Slide 4: 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 r/r)* 5% 56 3,2% 3,5% 4,1% 7% 6,0% 3,8% 55 6% 5,0% 5,3% 3,6% 3,6% 3,9% 4% 3,3% 3,1% 3,1% 54 5% 4,7% 4,5% 4,9% 3,9% 4,3%
Slide 5: Q1 2016 key financial data
Q1 2016 key financial data Sales revenue [PLN m] Net profit attributable to the parent company’s shareholders [PLN m] 5 000 4 790 4 647 400 401 500 4 000 1 600 1 587 400 3 000 231 300 238 502 2 000 200 2 558 323 1 000 2 421 100 0 0 Q1 2015 Q1 2016 Q1 2015 Q1 2016 electricity heat distribution and co
Slide 6: Q1 2016 key segments results
Q1 2016 key segments results [PLN m] Distribution Supply Generation Mining Segment’s revenue 1 616 3 591 1 272 254 EBITDA 543 167 191 (65) EBIT 292 160 89 (104) CAPEX 328 0.7 256 63 PLN m Individual segments’ contribution to EBITDA 1 200 1 015 1 000 4% 873 19% 3% 1% Unassigned 800 19% Other 600 54%
Slide 7: Q1 2016 EBITDA
Q1 2016 EBITDA -14% PLN m 1 400 21.2% -25.5% 15.0% 33.6% 4.6% 14.0% - 18.8% 1 200 1 015 1 000 429 -21 9 873 -87 -3 800 -27 -13 417 600 586 400 456 200 0 Mining Generation Distribution Supply Other Unassigned items Q1 2015 EBITDA Q1 2016 EBITDA EBIT Depreciation and write-downs Segment's increase Seg
Slide 8: Mining
Mining Financial data [PLN m] Change of EBITDA [PLN m] 0 300 269 254 200 -20 100 60 63 -40 -44 0 -44 -43 -65 -72 -72 -60 11 4 -22 -100 -32 - 22 -65 -4 11 -104 -80 10 -200 Q1 2015 Q1 2016 -100 - 30 Sales revenue TWD EBITDA NBGT EBITDA -120 TWD EBIT NBGT EBIT CAPEX Q1 2015 NBGT result Coal dust Coal d
Slide 9: Generation
Generation Financial data [PLN m] Change of EBITDA [PLN m] 400 18 2 000 30 350 37 1 563 300 278 1 500 - 69 1 272 250 141 - 73 191 200 1 000 - 30 150 102 423 100 137 500 256 138 89 50 89 278 191 0 0 Q1 2015 Q1 2016 Q1 2015 EE variable unit ORM revenue IRZ revenue Electricity price Costs of CO2 Other
Slide 10: Distribution
Distribution Financial data [PLN m] Change of EBITDA [PLN m] 600 547 12 39 543 24 2 000 500 -11 -14 1 643 1 616 -54 1 600 400 242 252 1 200 300 800 547 543 200 305 305 292 400 292 100 0 285 328 0 Q1 2015 Q1 2016 Distribution Sales volume Cost of grid Connection fee OPEX Other Q1 2016 Q1 2015 service
Slide 11: Supply
Supply Financial data [PLN m] Change of EBITDA [PLN m] 200 194 30 191 3 3 4 500 4 178 167 - 15 7 3 591 150 -9 - 36 160 3 000 100 50 1 500 0 194 191 167 160 Q1 2015 EBITDA Electricity sales Prices of property Costs of the Fixed costs Other Q1 2016 EBITDA volume and price rights property rights 0 rede
Slide 12: Debt and financing
Debt and financing TAURON Group’s debt maturity as of 31.03.2016 4 000 1 000 2 989 827 3 000 800 2 019 600 2 000 400 876 1 000 717 200 339 288 281 261 24 39 74 165 187 200 130 115 100 25 27 25 - - 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2016 2016 20
Slide 13: 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 - 17 2019 III Power Plant Construction of the CCGT unit at Stalowa Wola 450 240 85 2018/2019* Combined Heat
Slide 14: CAPEX per segment
CAPEX per segment CAPEX by segment [PLN m] Key investment projects completed in Q1 2016: 792 Mining: -17% construction of the 800 m level at Janina coal mine 23 654 (PLN 12m) construction of the Grzegorz shaft at Sobieski coal 6 mine (PLN 15m) 285 Generation: construction of the NOx emissi
Slide 15: Efficiency improvement program
Efficiency improvement program Savings realized Savings planned Segment Progress % Main initiatives in Q1 2016 in 2016-2018 Employment restructuring, reduction of labor costs and increasing their flexibility, reorganizational measures Mining PLN 24m PLN 255m 9% Use of electronic auctions in the
Slide 16: TAURON Group's new business model
TAURON Group’s new business model CORPORATE CENTER Asset Management Customer and Support/Corporate Strategy Finance and Development Trade Management Process Distribution Supply Trade Mining Generation RES Heat streams (Segment) (Segment) (Segment) (Segment) (Segment) (Segment) (Segment) ● Shaping ex
Slide 17: Key challenges
Key challenges TAURON Group – key challenges Strategy and business model Financial stability Review of investment projects / alignment Update of TAURON Group’s corporate of capex with the market conditions and the strategy Group’s financial standing Implementation of TAURON Group’s new Imple
Slide 18: 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 18
Slide 19: 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 20: Electricity market price trends
Electricity market price trends Electricity 2015 2016 (until April 18, 2016) 2016/2015 (until April 18, 2015) Platforms: TGE, TFS, GFI, GPW-POEE Price (PLN/MWh) Volume (GWh) Price (PLN/MWh) Volume (GWh) Price % Volume % Forward BASE (Y+Q+M) 167.51 201 870 165.73 173 447 -1.1% -14.1% Forward PEAK (Y+
Slide 21: 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 171.06/MWh, total 2016 BASE and PEAK volume: 164
Slide 22: 2017 BASE contracts
2017 BASE contracts PLN/MWh Volume Price Average Average price Volume [GWh] [PLN/MWh] Total 160.36 32 167 TGE 159.13 20 604 including non TGE 162.54 11 563 Average electricity price that takes into account 2017 one year BASE and PEAK contracts: PLN 163.42/MWh, total 2017 BASE and PEAK volume: 34 320
Slide 23: 2018 BASE contracts
2018 BASE contracts PLN/MWh Volume Price Average Average price Volume [GWh] [PLN/MWh] Total 156.54 3 048 TGE 155.67 1 656 including non TGE 157.57 1 393 Average electricity price that takes into account 2018 one year BASE and PEAK contracts: PLN 160.09/MWh, total 2018 BASE and PEAK volume: 3 249 GWh
Slide 24: Analysts covering TAURON
Analysts covering TAURON Institution Analyst Institution Analyst J.P. Morgan Cazenove Michał Kuzawiński ING Securities Maria Mickiewicz IPOPEMA Sandra Piczak DB Securities Tomasz Krukowski Raiffeisen Centrobank Teresa Schinwald Dom Maklerski mBanku Kamil Kliszcz Renaissance Capital Vladimir Sklyar S
Slide 25: Thank you for your attention
Thank you for your attention 25
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