HELLENiQ ENERGY Holdings S.A. · ATHEX:ELPE

HELLENiQ ENERGY — Hellenic Petroleum Holdings — Q2 2022 Earnings Presentation

45 slides from HELLENiQ ENERGY's earnings presentation, Aug 25, 2022

  1. Slide 1: Results Presentation

    Results _ Presentation Athens, 25 August 2022 © HELLENIC PETROLEU

  2. Slide 2: Contents

    Contents * Executive Summary * Industry Environment * Group Results Overview * Business Units Performance * Financial Results > Q&A © HELLENIC PETROLEUM

  3. Slide 3: 2Q22 Results Highlights

    2Q22 RESULTS HIGHLIGHTS: Strong international refining environment and improved exports business drives 2Q22 Group performance • Record-high international benchmark refining margins on tighter product balances: – Significantly higher crude oil prices and stronger USD vs EUR led to record-high EUR/bb

  4. Slide 4: 2Q22 Results Highlights: RES expansion and Vision 2025 on track

    2Q22 RESULTS HIGHLIGHTS: RES expansion and Vision 2025 on track • Vision 2025 on track – Rebranding within Sep 2022 – EGM scheduled within Sep 2022 to approve Group rebranding, as per Vision 2025 communicated strategy • RES expansion ramps up with new acquisition – Acquisition of a 55 MW operating w

  5. Slide 5: 2Q22 Group Key Financials

    2Q22 GROUP KEY FINANCIALS LTM € million, IFRS 2Q 1H 1H 2021 2022 Δ% 2021 2022 Δ% Income Statement 14,452 Sales Volume (MT'000) - Refining 4,054 3,418 -16% 7,458 6,710 -10% 4,841 Sales Volume (MT'000) - Marketing 1,120 1,439 29% 2,124 2,682 26% 190 Power Volume Generated (GWh) - RES 13 114 23 157 12,

  6. Slide 6: Contents

    Contents * Executive Summary * Industry Environment * Group Results Overview * Business Units Performance * Financial Results > Q&A HELLENIC PETROLEUM

  7. Slide 7: Industry Environment: Crude oil prices

    INDUSTRY ENVIRONMENT Crude oil prices reached an 8-year high following invasion in Ukraine and remained at notably high levels through 2Q22; USD strengthened further, leading to historical high EUR/bbl Brent pricing Platts Dated Brent ($/bbl) and EUR/USD * 114 102 2Q21 2Q22 80 Brent 69 114 69 73 61

  8. Slide 8: Industry Environment – Benchmark Margins, Spreads

    INDUSTRY ENVIRONMENT – BENCHMARK MARGINS, SPREADS Highest ever ULSD and gasoline cracks, driving 2Q22 benchmark margins to record levels Product Cracks* ($/bbl) Med benchmark margins** ($/bbl) $/bbl 46 FCC 36 21.4 26 4.9 16 3.8 3.9 3.6 3.3 6 2.5 2.3 -4 1.3 1.6 1.0 1.1 -14 0.6 -24 0.0 -34 2018 2019 1

  9. Slide 9: Industry Environment: Energy crisis and electricity prices

    INDUSTRY ENVIRONMENT Εnergy crisis continues in 2Q22, with natgas-driven electricity prices maintained at record highs ever levels, up 3.5-4x vs LY TTF Natgas Price (€/MWh) / EUA Price (€/T) / Electricity Price (€/MWh)* 2Q21 2Q22 249 242 Electricity Price 73 249 229 124 2Q21 2Q22 Natgas TTF Price 25

  10. Slide 10: Domestic Market Environment

    DOMESTIC MARKET ENVIRONMENT Economic growth pick-up and strong tourism support demand recovery in the domestic market, led by diesel Domestic Market Demand* (MT ‘000) +2% -7% Quarterly Δ% vs Δ% vs 1,563 1,557 2Q21 2Q19 1,417 1,447 LPG & Others 215 179 +1% -16% 81 188 190 HGO 34 419 86 -61% -58% Dies

  11. Slide 11: Domestic Market Environment: Aviation

    DOMESTIC MARKET ENVIRONMENT Strong tourism drives volume recovery in Aviation, with demand tripling y-o-y in 2Q22, approaching pre-Covid levels Passenger Traffic (mn) Aviation Demand (MT ‘000) AIA & Fraport Greece Peripheral Airports +198% +166% 389 28.0 355 Δ% vs 7m 2019 Δ% vs 16.2 2Q19 - 119 -9% 1

  12. Slide 12: Contents

    Contents * Executive Summary * Industry Environment * Group Results Overview * Business Units Performance * Financial Results > Q&A © HELLENIC PETROLEUM

  13. Slide 13: Causal Track & Segmental Results Overview 2Q22

    CAUSAL TRACK & SEGMENTAL RESULTS OVERVIEW 2Q22 Strong international margins, improved exports performance and tourism season drive strong results despite higher energy costs; impact of planned refining maintenance reflects opportunity cost due to high benchmarks Adjusted EBITDA1 causal track 2Q22 vs

  14. Slide 14: Credit Facilities - Liquidity

    CREDIT FACILITIES - LIQUIDITY Refinancing/extension of 2H22 facilities in process; working capital funding requirement increased total cost Gross Debt Sourcing (%) Committed Facilities Maturity Profile (€m) 1,000 •1% 18% 800 600 24% 58% 400 200 0 Banks (committed) Debt capital markets 2022 2023 2024

  15. Slide 15: Contents

    Contents * Executive Summary * Industry Environment * Group Results Overview * Business Units Performance * Financial Results > Q&A © HELLENIC PETROLEUM

  16. Slide 16: Refining, Supply & Trading

    Refining, Supply & Trading 2Q22

  17. Slide 17: Domestic Refining, Supply & Trading – Overview

    DOMESTIC REFINING, SUPPLY & TRADING – OVERVIEW Strong performance driven by international benchmarks and exports premia; Elefsina T/A and scheduled maintenance at Aspropyrgos FCC successfully completed in 2Q FY IFRS FINANCIAL STATEMENTS 2Q 1H 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS -

  18. Slide 18: Domestic Refining, Supply & Trading – Operations

    DOMESTIC REFINING, SUPPLY & TRADING – OPERATIONS Reduced availability due to maintenance led to lower output; Crude supply switched post 1Q22 with increased Middle East crudes participation Gross Production by refinery (MT’000) -13% 4,011 4,062 4,129 3,961 3,652 3,718 3,392 3,548 Thessaloniki 3,129

  19. Slide 19: Domestic Refining, Supply & Trading – Sales

    DOMESTIC REFINING, SUPPLY & TRADING – SALES Export sales volumes affected by maintenance, albeit with significantly higher contribution Sales* by market (MT’000) -16% 4,055 3,842 3,884 3,644 3,647 3,403 3,407 3,218 3,292 2,724 Exports 1,677 Aviation & 737 Bunkering 428 Domestic 902 994 2Q20 3Q20 4Q2

  20. Slide 20: Domestic Refining, Supply & Trading – Realised Refining Margin

    DOMESTIC REFINING, SUPPLY & TRADING – REALISED REFINING MARGIN Stronger benchmarks and overperformance due to tourism and improved exports markets drove realized margins HELPE realised vs benchmark* margin ($/bbl) Adj. EBITDA1 67 127 73 85 38 13 41 9 10 55 83 44 467 (€m) 26.5 Contango trades 18.1 11

  21. Slide 21: Domestic Refining, Supply & Trading – Opex

    DOMESTIC REFINING, SUPPLY & TRADING – OPEX Εlectricity and CO2 costs have increased 3-4x since pre-Covid, impacting refineries’ operating expenses +226% +102% +277% 83.1 1.2 249.1 0.6 25.5 66.1 2Q19 2Q22 FY19 FY22e 2Q19 2Q22 EUA Price (EUR/ton) EUA deficit (mn) Electricity Price (EUR/MWh) Opex per b

  22. Slide 22: Petrochemicals

    Petrochemicals 2Q22 Business Units Performance

  23. Slide 23: Petrochemicals

    PETROCHEMICALS Normalisation of PP margins and lower propylene output from FCC bring back petchems contribution to expected levels FY IFRS FINANCIAL STATEMENTS 2Q 1H 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS* 275 Volume (MT '000) 66 67 2% 138 135 -2% 379 Net Sales 97 112 15% 188 218 16

  24. Slide 24: Fuels Marketing

    Fuels Marketing 2Q22 Business Units Performance

  25. Slide 25: Domestic Marketing

    DOMESTIC MARKETING Improved profitability on higher sales volumes, mainly in aviation and bunkering, as well as market share gains; network optimization and transformation projects contributed in results and operational performance FY IFRS FINANCIAL STATEMENTS 2Q 1H 2021 € MILLION 2021 2022 Δ% 2021

  26. Slide 26: International Marketing

    INTERNATIONAL MARKETING Increased sales volumes offset higher opex resulting in improved 2Q22 profitability FY IFRS FINANCIAL STATEMENTS 2Q 1H 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS - INTERNATIONAL 916 Volume (MT '000) 398 494 24% 729 930 28% 827 Net Sales 280 625 - 495 1,043 - 1 68

  27. Slide 27: Renewables

    Renewables 2Q22 Business Units Performance

  28. Slide 28: Renewables

    RENEWABLES Profitability rebased on full contribution from Kozani PV plant; 340 MW currently in operation, approaching annualized run-rate EBITDA of €50mn FY IFRS FINANCIAL STATEMENTS 2Q 1H 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS 65 Installed Capacity (MW) * 26 285 28 285 56 Volumes

  29. Slide 29: Power & Gas

    Power & Gas 2Q22 Business Units Performance

  30. Slide 30: Power Generation: 50% stake in Elpedison

    POWER GENERATION: 50% stake in Elpedison Improved results on operational flexibility and gas supply optimization; record high prices drive doubled working capital and funding needs FY FINANCIAL STATEMENTS 2Q 1H 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS 3,726 Net production (GWh) 954 66

  31. Slide 31: Gas: 35% stake in DEPA Commercial, Infrastructure & International Projects

    GAS: 35% stake in DEPA Commercial, Infrastructure & International Projects Higher contribution from DEPA Commercial; DEPA Infrastructure transaction expected to close in 3Q22 FY FINANCIAL STATEMENTS 2Q 1H 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% KEY FINANCIALS 286 EBITDA * 24 35 45% 66 53 -20% 191 P

  32. Slide 32: Contents

    Contents * Executive Summary * Industry Environment * Group Results Overview * Business Units Performance * Financial Results > Q&A HELLENIC PETROLEUM

  33. Slide 33: 2Q22 Financial Results: Group Profit & Loss Account

    2Q22 FINANCIAL RESULTS GROUP PROFIT & LOSS ACCOUNT FY IFRS FINANCIAL STATEMENTS 2Q 1H 2021 € MILLION 2021 2022 Δ% 2021 2022 Δ% 9,222 Sales 2,235 3,974 78% 3,957 6,777 71% -8,346 Cost of sales -2,057 -3,164 -54% -3,483 -5,422 -56% 876 Gross profit 178 810 - 475 1,355 - -482 Selling, distribution, adm

  34. Slide 34: 2Q22 Financial Results: Reported vs Adjusted EBITDA

    2Q22 FINANCIAL RESULTS REPORTED VS ADJUSTED EBITDA FY (€ million) 2Q 1H 2021 2021 2022 2021 2022 657 Reported EBITDA 133 738 391 1,239 -308 Inventory effect - Loss/(Gain) -73 -246 -195 -513 52 One-offs / Special items - Loss / (Gain) 7 16 13 33 - Accrual of CO2 emission deficit* 11 27 -71 -126 1 401

  35. Slide 35: 2Q22 Financial Results: Group Balance Sheet

    2Q22 FINANCIAL RESULTS GROUP BALANCE SHEET IFRS FINANCIAL STATEMENTS FY 1H € MILLION 2021 2022 Non-current assets Tangible and Intangible assets 3,713 3,770 Right of use assets 228 209 Investments in affiliated companies 314 370 Other non-current assets 150 164 4,406 4,513 Current assets Inventories

  36. Slide 36: 2Q22 Financial Results: Group Cash Flow

    2Q22 FINANCIAL RESULTS GROUP CASH FLOW FY IFRS FINANCIAL STATEMENTS 1H 2021 € MILLION 2021 2022 Cash flows from operating activities 262 Cash generated from operations 72 363 8 Income and other taxes paid 17 -3 270 Net cash (used in) / generated from operating activities 89 360 Cash flows from inves

  37. Slide 37: 2Q22 Financial Results: Segmental Analysis – I

    2Q22 FINANCIAL RESULTS SEGMENTAL ANALYSIS – I FY 2Q 1H 2021 € million, IFRS 2021 2022 Δ% 2021 2022 Δ% Reported EBITDA 425 Refining, Supply & Trading 66 673 - 269 1,115 - 130 Petrochemicals 45 22 -52% 81 50 -38% 117 Marketing 26 40 55% 49 77 57% 0 RES 0 6 - 1 8 - 672 Core Business 138 741 - 400 1,250

  38. Slide 38: 2Q22 Financial Results: Segmental Analysis – II

    2Q22 FINANCIAL RESULTS SEGMENTAL ANALYSIS – II FY 2Q 1H 2021 € million, IFRS 2021 2022 Δ% 2021 2022 Δ% Volumes (M/T'000) 15,199 Refining, Supply & Trading 4,054 3,418 -16% 7,458 6,710 -10% 275 Petrochemicals 66 67 2% 138 135 -2% 4,283 Marketing 1,120 1,208 8% 2,124 2,682 26% 56 RES 13 114 - 23 157 -

  39. Slide 39: Contents

    Contents * Executive Summary * Industry Environment * Group Results Overview * Business Units Performance * Financial Results > Q&A HELLENIC PETROLEUM

  40. Slide 40: Annual Report – Sustainability Report

    Annual Report – Sustainability Report ANNUAL REPORT 2021 Annual Report 2021 Digital Annual Report 2021 SUSTAINABILITY & Sustainability Report 2021 CORPORATE RESPONSIBILITY REPORT 2021 Digital Sustainability Report 2021 39

  41. Slide 41: Notes

    NOTES 1. Calculated as Reported less the Inventory effect and other non-operating items, as well as the impact of quarterly accrual for estimated CO2 net deficit*. OKTA figures reclassified from RST to International Marketing (including comparatives for 2021). 2. Includes 35% share of operating prof

  42. Slide 42: Alternative performance measures (not defined under IFRS)

    Alternative performance measures (not defined under IFRS) • Reported EBITDA Reported EBITDA is defined as earnings/(loss) before interest, taxes, depreciation and amortisation, and is calculated by adding back depreciation and amortization to operating profit. • Adjusted EBITDA Adjusted EBITDA is de

  43. Slide 43: Glossary (1/2)

    Glossary (1/2) AGM Annual General Meeting BBL Barrel BPD Barrels per day BOPP Biaxially Oriented Polypropylene BU Business Units CAPEX Capital Expenditure CDU Crude Oil Distillation Unit C&I Commercial & Industrial CCGT Combined Cycle Gas Turbines CCS Carbon Capture and Storage CSR Corporate Social

  44. Slide 44: Glossary (2/2)

    Glossary (2/2) KT Kilo Tones LNG Liquified Natural Gas LPG Liquified Petroleum Gas LS Low Sulfur LSFO Low Sulfur Fuel Oil M&A Mergers & Acquisitions MD Middle Distillates MGO Marine Gasoil MOGAS Motor Gasoline MT Metric Tones MW Megawatt NG Natural Gas OPEX Operating Expenses PetChem Petrochemical P

  45. Slide 45: Disclaimer

    DISCLAIMER Forward looking statements HELLENIC PETROLEUM Holdings does not in general publish forecasts regarding their future financial results. The financial forecasts contained in this document are based on a series of assumptions, which are subject to the occurrence of events that can neither be

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