Ze Pak Sa · GPW:ZEP

Ze Pak Sa — Zespół Elektrowni Pątnów-Adamów-Konin — Q1 2019 Earnings Presentation

23 slides from Ze Pak Sa's earnings presentation, May 15, 2019

  1. Slide 1: Zespół Elektrowni Pątnów-Adamów-Konin SA 1Q 2019 Results

    May 15, 2019 Zespół Elektrowni Pątnów-Adamów-Konin SA 1Q 2019 Results

  2. Slide 2: ZE PAK GROUP – 1Q 2019 summary

    ZE PAK GROUP – 1Q 2019 summary Key operational and financial data 1Q 2019 change r/r Sale of electricity: 2,31 TWh 10,53% • Electricity from own production: 1,16 TWh -16,55% • Electricity from resale: 1,15 TWh 64,29% Achieved average electricity sale price(1) 269,88 zł/MWh 42,34% Sale revenues: 695

  3. Slide 3: ZE PAK GROUP – 1Q 2019 summary

    ZE PAK GROUP – 1Q 2019 summary [m PLN] Revenues EBITDA Net profit/loss 695 ⬆ 49,14% 71 ⬇ 2,74% 466 ⬆ 48,00% 297 74 73 ⬆132,03% 128 50 46 ⬆ 23,40% 12 327 265 49 28 1 1Q 2019 1Q 2018 1Q 2019 1Q 2018 1Q 2019 1Q 2018 -16 Depreciation EBIT The higher revenues achieved in the first quarter of 2019 were de

  4. Slide 4: Selected Electricity Market Data

    SELECTED ELECTRICITY MARKET DATA 4

  5. Slide 5: Electricity prices

    Electricity prices 1Q 2019 on the day ahead market there was a decrease in the weighted average electricity 450,00 price in relation to the preceding two quarters. IRDN Price Lower domestic electricity consumption by maks. 1.39% compared to the same period last year. A 350,00 relatively mild winter,

  6. Slide 6: EUA and green certificates

    EUA and green certificates 1Q 2019 on the EUA market, like the previous 25,00 two, was characterized by very high price 22,10 22,00 20,35 volatility. The difference between the minimum 18,81 and the maximum quotations exceeded EUR 6, 19,00 EUA price i.e. around 24% in relation to the price from the

  7. Slide 7: Informacje operacyjne

    INFORMACJE OPERACYJNE Wea ia dla Ciebie Energ

  8. Slide 8: Net production and sale of electricity

    Net production and sale of electricity [TWh] NET PRODUCTION SALE 2,31 ⬆ 10,53% 2,09 1,16 ⬇ 16,55% 1,39 0,09 ⬇ 22,22% 0,07 1,15 ⬆ 64,29% 0,70 0,50 0,45 ⬇ 10,00% ⬇ 16,55% 0,80 1,39 ⬇ 20,00% 1,16 0,64 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Own production Resale Pątnów I Pątnów II Konin Adamów 600 The drop in

  9. Slide 9: Lignite consumption and CO2 emission

    Lignite consumption and CO2 emission [m ton] LIGNITE CONSUMPTION CO2 emission 1,51 ⬇ 17,93% 1,84 1,39 ⬇ 20,11% 1,74 0,10 ⬆ 100,00% 0,20 0,55 ⬇ 7,27% 0,51 1,74 1,31 ⬇ 24,71% 1,19 0,88 ⬇ 26,05% 1Q 2019 1Q 2018 1Q 2019 1Q 2018 PAK KWB Adamów PAK KWB Konin ZE PAK Pątnów II 9

  10. Slide 10: Average prices of electricity and CO2 emission allowances purchase

    Average prices of electricity and CO2 emission allowances purchase Elecrticity prices 1) Prices of CO2 emission allowances purchase (EUA) 2) 81,70 złoty/MWh złoty/EUA 269,88 ⬆ 42,34% ⬆ 149,92% 189,60 32,69 1Q 2019 1Q 2018 1Q 2019 1Q 2018 2) Average price is calculated as the purchase cost of emissio

  11. Slide 11: Sale of electricity breakdown

    Sale of electricity breakdown by customers (internal ring) and by the market type (external ring) 1Q 2019 1Q 2018 Balancing Balancing market market 4,9% 6,6% Top 5 Bilateral Top 5 Customers contracts Customers 29,0% 36,1% 33,5% Bilateral contracts 45,4% Others 71,0% Others 66,5% Polish Power Exchang

  12. Slide 12: Capex on fixed assets and intangible assets

    Capex on fixed assets and intangible assets (excluding CO2) CAPEX [m PLN] EXPENDITURES [m PLN] ⬇ 79,05% ⬇ 64,08% 39 38 14 8 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Currently, the Group does not implement large investment projects. Investment activity focuses on the implementation of the necessary tasks to e

  13. Slide 13: Financial Data

    FINANCIAL DATA 13

  14. Slide 14: Revenues and costs by type

    Revenues and costs by type [m PLN] Revenues 1Q 2019 Higher total revenues from the sale of electricity: 327 • higher volume of electricity sales (increase 297 1Q 2018 265 in the volume of electricity from resale higher than the drop in the volume of electricity from own production, • higher electric

  15. Slide 15: EBITDA 1Q 2019

    EBITDA 1Q 2019 [m PLN] 1Q 2019 1Q 2018 EBITDA higher by 24 m PLN 48,0% Sale revenues 695 466 (+99) hiher revenues from electricity from own production , lower LTC compensation, Change % 41,42% -22,33% higher revenues from heat sale, higher revenues from certyficates of orygin, and higher result on e

  16. Slide 16: EBITDA 1Q 2019 by segments

    EBITDA 1Q 2019 by segments [m PLN] Zmiany EBITDA WZROST EBITDA SPADEK EBITDA +49 +1 +6 - 32 74 50 SALE GENERATION MINING EBITDA 1Q 2018 EBITDA 1Q 2019 OTHER RENOVATION ADJUSTMENT 123 Main reasons of EBITDA changes in generation and mining segments: 74 EBITDA Generation: -54 -22 -1 5 -1 -1 - higher r

  17. Slide 17: Consolidated P&L for 1Q 2019 by segments

    Consolidated P&L for 1Q 2019 by segments Consolidation m PLN Generation Mining Renovation Sale Other adjustments Total Sale revenues from 492 3 13 186 1 - 695 external customers External sale revenues % 89,45% 2,83% 43,33% 100,00% 1,72% 0,00% 100,00% Sale revenues between 58 104 16 - 57 (235) - segm

  18. Slide 18: Financial activities, taxation and net profit

    Financial activities, taxation and net profit [m PLN] 1Q 2019 1Q 2018 EBIT --˃ net profit EBIT 28 1 Financial income 8 2 Financial costs (8) (11) Gross profit 28 (8) Income tax 12 0 -16 (taxation) (16)(1) (8) 28 Effective tax rate - - Net profit for the period 12 (16) Margin % 1,73 - EBIT Result on

  19. Slide 19: Employment

    Employment [full time] BY SEGMENTS TOTAL 3 000 5 359 4 966 5 069 2 000 1 000 - GENERATION MINING RENOVATION OTHER 31-03-2019 31-12-2018 31-03-2018 31-03-2019 31-12-2018 31-03-2018 The decline in employment in 1Q 2018 was largely due to the end of production of coal units at the Adamów power plant. 1

  20. Slide 20: Financial indebtedness

    Financial indebtedness Net debt [m PLN] Net debt / EBITDA 31.03.2019 31.12.2018 31.03.2018 31.03.2019 1,04 31.12.2018 0,92 31.03.2018 0,77 613 (1) Cash and cash equivalents from consolidated statement of financial 417 424 position and other short-term 336 financial assets 119 83 (298) (277) (341) Ca

  21. Slide 21: Financial indebtedness structure

    Financial indebtedness structure (1) 400 Indebtedness to pay in following years 300 mln PLN 200 100 0 2019 2020 Indebtedness structure by Indebtedness structure by Indebtedness structure debtor currency by rate 17,27% 8,63% 17,27% Elektrownia Pątnów II PLN floating rate PAK KWB EUR 56,44% Konin fixe

  22. Slide 22: Consolidated cash flow

    Consolidated cash flow [m PLN] 1Q 2019 1Q 2018 Gross profit (loss) 28 (8) (1) Replacement of bank guarantees instead of Depreciation and amortisation 47 48 cash for the part of deposits related to exchange Profit/loss on investing and financial activities 1 4 electricity contracts and an increase in

  23. Slide 23: Disclaimer

    Disclaimer This presentation ("Presentation") is prepared for information purposes only and should not be treated as investment advice. This presentation has been prepared by Zespół Elektrowni Pątnów-Adamów-Konin S.A. (“the Company”). Presentation Recipients are solely responsible for their own anal

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