Tauron Polska Energia S.a. · GPW:TPE
Tauron Polska Energia — H1 2014 Earnings Presentation
33 slides from Tauron Polska Energia's earnings presentation, Aug 21, 2014
Slide 1: TAURON Group's H1 2014 financial results
TAURON Group’s H1 2014 financial results August 21, 2014
Slide 2: H1 2014 key financial parameters
H1 2014 key financial parameters TAURON Group’s H1 2014 financial results [PLN m] H1 2014 Sales revenue 9 226 (-4.9% yoy) EBITDA 1 995 (-2.9% yoy) Net profit* 730 (-14.0% yoy) CAPEX 1 250 (-7.4% yoy) Net debt/EBITDA 1.68x (up 0.26) Key segments’ H1 2014 results [PLN m] Distribution Supply Heat Gener
Slide 3: Q2 2014 key financial parameters
Q2 2014 key financial parameters TAURON Group’s Q2 2014 financial results [PLN m] Q2 2014 Sales revenue 4 339 (-4.5% yoy) EBITDA 906 (9% yoy) Net profit* 334 (15.3% yoy) CAPEX 685 (-15.4% yoy) Net debt/EBITDA 1.68x (up 0.26) Key segments’ Q2 2014 results [PLN m] Distribution Supply Heat Generation M
Slide 4: Highlights summary
Highlights summary TAURON Date Event GM’s decision on allocating approx. PLN 333m from 2013 net profit to pay out as dividend to the shareholders (PLN May 15 0.19 per share) June 2 Publishing of ”TAURON Group’s Corporate Strategy for 2014-2017 with an outlook until 2023” July 18 TAURON Polska Energi
Slide 5: Macroeconomic and market situation
Macroeconomic and market situation Increase of manufacturing production sold and electricity GDP Poland GDP growth rate* and manufaturing PMI PMI consumption (change yoy)* (quarterly average) 5% 56 12% 55 +0.1 p.p. 10% 4% 54 8% +2.2 p.p. 53 3% 52 6% 51 4% 2% 50 2% 49 1% 48 0% 47 -2% 0% 46 -4% Q1 201
Slide 6: H1 2014 key operating data
H1 2014 key operating data Mg m Hard coal production and sales [ton m] TWh Electricity [TWh] and heat [PJ] generation PJ 12 12 9.75 10 10 3,0 0,60 51.7% 7.29 8 8 0.91 -36.3% 0,91 6 6 2,0 0,58 9,15 9,43 3.00 4 7,82 4 2.55 6,38 1,0 2,05 2 2 1,61 -30.3% -17.1% 0 0 -21.5% -15.0% H1 2013 H1 2014 0,0 H1 2
Slide 7: Q2 2014 key operating data
H1 2014 key operating data Mg m Hard coal production and sales [ton m] TWh Electricity [TWh] and heat [PJ] generation PJ 5 4.60 5 0,32 4 37.5% 3.59 4 0.44 0.51 -41.2% 3 3 1,0 0.30 2 4,28 2 1.48 3,15 1.30 0,94 1 1.94 1.90 1 0,88 -26.4% -2.1% -6.4% -12.2% 0 0 Q2 2013 Q2 2014 0,0 Q2 2013 Q2 2014 intra-
Slide 8: H1 2014 key financial data
H1 2014 key financial data Sales revenue [PLN m] Net profit [PLN m] 9 707 10 000 9 226 1 000 892 1 230 1 063 8 000 -13.6% 734 800 2 819 2 927 6 000 3.8% 600 4 000 400 5 658 5 236 2 000 200 -7.4% -17.7% 0 0 H1 2013 H1 2013 H12014 H1 2014 H1 2013 H1 2014 electricity distribution and trading services o
Slide 9: Q2 2014 key financial data
Q2 2014 key financial data Sales revenue [PLN m] Net profit [PLN m] 6 000 335 350 311 4 542 4 339 300 5 000 -18.3% 574 469 250 4 000 1 348 4.4% 200 3 000 1 407 150 2 000 100 2 621 2 463 1 000 50 -6.0% 7.7% 0 0 Q2 2013 Q1 2013 Q12014 Q2 2014 Q2 2013 Q2 2014 electricity distribution and trading servic
Slide 10: H1 2014 EBITDA
H1 2014 EBITDA PLN m -2.9% EBIT Depreciation Segment increase Segment decrease EBITDA margin 3 000 21.2% 5.3% 8.6% 66.7% 23.0% 38.4% 5.2% 18.4 9.5% - 21.6% 2 500 33 66 2 054 99 35 1 995 22 6 2 000 864 -109 -204 -5 912 1 500 1 000 1 190 1 082 500 0 H1 2013 Mining Generation RES Heat Distribution Supp
Slide 11: Q2 2014 EBITDA
Q2 2014 EBITDA PLN m +8.9% EBIT Depreciation Segment increase 1 400 1 200 18.3% 3.0% 8.3% 62.9% 12.5% 41.1% 4.4% 11.4% 11.9% - 20.9% 6 34 189 9 1 000 3 906 832 -95 -6 800 -10 456 437 -56 600 400 450 400 200 0 Q2 2013 Mining Generation RES Heat Distribution Supply Customer Other Unassigned Q2 2014 EB
Slide 12: H1 2014 prime costs structure
H1 2014 prime costs structure Prime costs structure PLN m H1 917 1 012 1 288 287 1 276 2014 4 852 19% 21% 27% 6% 26% 1% Fixed costs 63% Variable costs 37% -9.0% Fixed costs 64% Variable costs 36% H1 1 100 1 233 1 193 401 1 333 5 332 2013 21% 23% 22% 8% 25% 1% 0% 20% 40% 60% 80% 100% 120% Depreciatio
Slide 13: Q2 2014 prime costs structure
Q2 2014 prime costs structure Prime costs structure PLN m Q2 461 469 651 135 645 2 397 2014 19% 20% 27% 6% 27% 2% Fixed costs 66% Variable costs 34% -14.6% Fixed costs 68% Varaiable costs 32% Q2 667 581 619 170 692 2 805 2013 24% 21% 22% 6% 25% 3% 0% 20% 40% 60% 80% 100% 120% Depreciation Consumptio
Slide 14: Debt and financing
Debt and financing TAURON Group’s debt maturity [PLN m] Structure of TAURON Group’s debt [PLN m] 3 500 3 153 3 000 62 78 obligacje bonds 1% 1% 2 500 Net debt / EBITDA: 2 000 1.68x 1 247 20% kredyty z EBI EIB loans 1 500 1 453 National/Regional 1 000 Environment Protection 6 385 pożyczki and Waterpre
Slide 15: CAPEX – key projects' work progress
CAPEX – key projects’ work progress Capacity Capacity Planned Investment project (MWe) (MWt) Project status Work progress completion date Works underway on the unit’s basic design. Services with respect to the Construction of the hard coal-fired unit 910 - construction of the unit’s auxiliary system
Slide 16: CAPEX – by segment
CAPEX – by segment CAPEX by segment [PLN m] 1 350 -7,4% Main investment projects completed in H1 28 1 250 2014: 44 Distribution – construction of new connections (PLN 214m) and upgrade and restoration of grid assets (PLN 634 544m) RES – construction of the Marszewo 841 wind farm’s 2nd stage (PLN
Slide 17: OPEX reduction program
OPEX reduction program Savings realized Savings planned in Segment In 2013 and in Progress % Main initiatives 2013-2015 Q1-Q2 2014 Implementation of the ultimate business model, elimination of the redundant functions Change of the way expenses are classified as CAPEX or OPEX Optimization of th
Slide 18: 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 19: Thank you – Q&A
Thank you – Q&A Investor Relations Office Marcin Lauer marcin.lauer@tauron-pe.pl tel. + 48 32 774 27 06 Paweł Gaworzyński pawel.gaworzynski@tauron-pe.pl tel. + 48 32 774 25 34 Magdalena Wilczek magdalena.wilczek@tauron-pe.pl tel. + 48 32 774 25 38 19
Slide 20: Mining
Mining H1 2014 financial data [PLN m] H1 2014 EBIT bridge [PLN m] 800 748 100 84 700 600 50 529 500 0 400 110 300 -2 -24 -50 200 137 84 100 28 -100 0 -185 -100 -24 -150 -32 H1 2013 H1 2014 H1 2013 EBIT Hard coal sales Hard coal sales price Own cost of hard coal Other factors H1 2014 EBIT volume sold
Slide 21: Generation (conventional sources)
Generation (conventional sources) H1 2014 financial data [PLN m] H1 2014 EBIT bridge [PLN m] 2 500 2 270 +48.0% 50 237 2 000 -231 -111 0 1 473 1 500 -50 43 1 000 -100 88 -5 500 -150 127 -142 -9 28 0 -200 -91 -111 Generation -500 -231 -250 H1 EBIT assetsaktual. Odpis Cena Wolumen Electricty Electrici
Slide 22: Renewable Energy Sources (RES)
Renewable Energy Sources (RES) H1 2014 financial data [PLN m] H1 2014 EBIT bridge [PLN m] mln zł 160 145 120 +29.0% 140 26 100 120 97 -5 100 93 80 21 80 30 -22 60 57 62 57 60 44 -8 44 40 40 -17 -12 20 20 0 0 H1 2013 H1 2014 H1 2013 EBIT Electricity Electricity Property rights Property rights Propert
Slide 23: Heat
Heat H1 2014 financial data [PLN m] H1 2014 EBIT bridge [PLN m] 125 +23.4% 750 716 718 33 9 14 105 8 1 92 -9 550 85 -15 75 -24 65 350 45 165 133 150 92 25 75 5 -50 H1 2013 H1 2014 -15 H1 2013 EBIT Property rights Heat supply Electricity Electricity Heat sales Margin on Depreciation Other factors H1
Slide 24: Distribution
Distribution H1 2014 financial data [PLN m] H1 2014 EBIT bridge [PLN m] 3 011 3 049 3 000 +6.7% 900 2 500 101 800 44 5 33 10 700 700 656 2 000 -11 -117 -22 600 1 500 1 104 1 170 500 1 000 400 656 700 300 500 200 0 100 H1 2013 H1 2014 0 H1 2013 EBIT Distribution Distribution Balancing DSO/TSO OPEX Ta
Slide 25: Distribution – volumes
Distribution – volumes H1 2013 electricity distribution [GWh] H1 2014 electricity distribution [GWh] 5 096 4 991 6 706 Group A 6 796 Group A Group B Group B 22 651 Group C2 2 072 22 766 Group C2 2 144 Group C1+R+D Group C1+R+D Group G Group G 1 331 1 320 7 384 7 576 Q2 2013 electricity distribution
Slide 26: Supply
Supply H1 2014 financial data [PLN m] H1 2014 EBIT bridge [PLN m] 10 000 700 -35.4% 8 994 579 600 32 8 000 7 575 500 -39 6 000 400 -147 19 374 -31 -40 300 4 000 200 2 000 596 579 100 392 374 0 0 H1 2013 EBIT Retail sales Electricity price Increased Price of property Red and yellow Other factors H1 2
Slide 27: Supply – volumes
Supply – volumes H1 2013 electricity supply [GWh]* H1 2014 electricity supply [GWh]* 2 630 2 046 4 826 4 118 GroupAA Grupa Group A Grupa A Grupa GroupBB 4 908 Group B B Grupa 5 045 20 688 Grupa GroupC2+C1+R+D C2+C1+R+D 19 062 Group C2+C1+R+D Grupa C2+C1+R+D Grupa GroupGG Grupa Group G G Sprzedaż poz
Slide 28: Customer service
Customer service H1 2014 financial data [PLN m] H1 2014 EBIT bridge [PLN m] 350 120 +37.0% 301 300 100 26 250 235 80 28 200 60 150 12 37 40 4 100 27 55 -59 50 34 27 37 20 0 0 H1 2013 EBIT Customer Service Acounting Shared IT Shared Services Costs of services Other factors H1 2014 EBIT H1 2013 H1 201
Slide 29: Electricity market price trends
Electricity market price trends Electricity 2013 2014. (until 1.08.2014) 2014/2013 Platforms: TGE, TFS, GFI, GPW-POEE Price PLN/MWh Volume GWh Price PLN/MWh Volume GWh Price % Volume % Forward BASE (Y+Q+M) 184.92 140 488 160.79 182 816 -13.0% 30.1% Forward PEAK (Y+Q+M) 204.35 14 855 183.21 18 461 -1
Slide 30: 2014 BASE contracts
2014 BASE contracts PLN/MWh GWh 230 BASE Y-14 5 000 Wolumen obrotu Trading volume Notowania Price Średnia Average price 220 4 500 4 000 210 3 500 200 3 000 190 2 500 180 2 000 170 1 500 160.40 160 1 000 150 500 140 0 2012-01-01 2012-04-01 2012-07-01 2012-09-30 2012-12-30 2013-03-31 2013-06-30 2013-0
Slide 31: 2015 BASE contracts
2015 BASE contracts PLN/MWh GWh BASE Y-15 5 000 200 4 500 Wolumen obrotu Trading volume Notowania Price Średnia Average price 190 4 000 3 500 180 3 000 2 500 170 165.47 2 000 160 1 500 1 000 150 500 140 0 2012-10-04 2012-12-17 2013-03-01 2013-05-14 2013-07-27 2013-10-09 2013-12-22 2014-03-06 2014-05
Slide 32: 2016 BASE contracts
2016 BASE contracts PLN/MWh GWh 185 BASE Y-16 5 000 4 500 180 4 000 175 3 500 172.20 3 000 170 2 500 165 2 000 160 1 500 Wolumen obrotu Trading volume Notowania Price Średnia Average price 1 000 155 500 150 0 2013-05-15 2013-07-04 2013-08-23 2013-10-12 2013-12-01 2014-01-20 2014-03-11 2014-04-30 201
Slide 33: TAURON's coverage by analysts
TAURON's coverage by analysts Institution Analyst Institution Analyst DB Securities Tomasz Krukowski Piotr Zielonka Ipopema Securities Tomasz Ściesiek Dom Maklerski mBanku Kamil Kliszcz Raiffeisen Centrobank Teresa Schinwald Dom Maklerski Banku Handlowego Piotr Dzięciołowski Renaissance Capital Vlad
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