Unimot Sa · GPW:UNT
Unimot Sa — Q1 2020 Earnings Presentation
39 slides from Unimot Sa's earnings presentation, May 19, 2020
Slide 1: Consolidated financial results for 1Q2020
Consolidated financial results for 1Q2020 19.05.2020
Slide 2: Agenda
AGENDA 1. Most important events 2. UNIMOT Group financial results 3. Financial results divided by segments 4. Outlook for future quarters 5. Appendix
Slide 3: 1Q2020: UNIMOT Group
1Q2020: UNIMOT GROUP Total revenues: Adjusted EBITDA*: EBITDA: Net profit: PLN 1 195.4m PLN 32.9m PLN -9.9m PLN -10.6m High increases of volumes in all business Anomalies on the crude oil market in March segments 2020 - a very high negative impact of compulsory reserves valuation on the EBITDA Yet a
Slide 4: Q1 2020: Business
Q1 2020: BUSINESS ▪ Growth in fuel sales volumes ▪ Growth in ▪ Growth in volumes ▪ Opening 4 more by 41.5% yoy volumes by 32.6% yoy stations in by 50.8% yoy Ukraine (at the ▪ Favourable external ▪ Further development of end of Q1 2020: environment - high domestic ▪ Won tenders GAS international trad
Slide 5: 1Q and April 2020: COVID-19 epidemic
1Q AND APRIL 2020: COVID-19 EPIDEMIC Decline in crude oil prices Accumulation of cash and precautionary approach Indirectly, decrease in crude oil prices, and, as a result 1. Saving programme (the so-called UNIMOT Group Shield) – of diesel oil – is beneficial for the Group due to: ▪ Saving more than
Slide 6: Agenda
AGENDA 1. Most important events 2. UNIMOT Group financial results 3. Financial results divided by segments 4. Outlook for future quarters 5. Appendix
Slide 7: Key financial data
KEY FINANCIAL DATA Total revenues [in PLN million] Revenues from external entities breakdown +37,6% Revenues for 1Q2020 are 1 261 1 306 1 195 much higher yoy, despite of 4,1% 1 007 1 008 lower prices of crude oil and 1Q20 86,6% 7,8% 843 869 start of COVID-19 epicemic Liquid fuels 1,5% LPG gas in mar
Slide 8: UNIMOT – Socially responsible company
UNIMOT – SOCIALLY RESPONSIBLE COMPANY In all the areas of its operations the Group complies with the principles of professionalism and business integrity, simultaneously ensuring the quality and safety of traded products. It also diligently promotes good relations with customers, suppliers, employee
Slide 9: Income statement and margins
INCOME STATEMENT AND MARGINS [in PLN million] 1Q19 1Q20 1Q20/1Q19 Net revenues 868 653 1 195 381 37.6% Gross profit on sales* 44 039 25 928 -41.1% Gross profit on sales margin* 5.1% 2.2% -2.9 p.p. Operating profit 18 422 -15 919 n/a Operating profit 2.1% n/a n/a EBITDA** 22 854 -9 861 n/a EBITDA mar
Slide 10: Impact of the compulsory reserves valuation
IMPACT OF THE COMPULSORY RESERVES VALUATION Crude Oil (Brent) in 1Q20 [in USD] Global, unprecedented market changes affected book valuation of compulsory reserves which resulted in negative book EBITDA. The above is connected with hedging policy of the Group which assumes full security against fluct
Slide 11: EBITDA vs. adjusted EBITDA
EBITDA VS. ADJUSTED EBITDA Adj. EBITDA 34,4 32,9 EBITDA* ADJUSTMENTS TO BOOK EBITDA IN Q1 2020: In PLN million 22,9 ▪ impact of liquid fuels reserves valuation: 18,7 17,6 PLN +45,259 thousand 16,3 16,7 18,3 ▪ The impact of moving costs over time in 17,8 14,9 liquid fuels business: 5,9 11,1 PLN -3,09
Slide 12: Cash flow
CASH FLOW [PLN thousand] 2019 2020 ▪ Increase of cash caused by a very good Operating activity cash flows business result Profit before taxation 20 164 -12 805 ▪ In Q1 2020, there was an inflow of receivables from the period when the product prices were higher, the Adjustments by items, in this: rec
Slide 13: Businesses contribution to consolidated EBITDA 1Q20
BUSINESSES CONTRIBUTION TO CONSOLIDATED EBITDA 1Q20 [in PLN million] 2,5 0,6 0,5 1,5 0,5 32,9 42,7 2,5 2,6 0,2 0,0 26,4 - 9,9 ON + BIO LPG Stacje AVIA Gaz UEiG Tradea Spółki Produkty Centrum EBITDA Korekty EBITDA Diesel+ LPG Fuel Paliw Natural Ziemny Ukraina AVIA UEiG Tradea Natural Gazowe Other Rop
Slide 14: Main reasons for lower consolidated results yoy
MAIN REASONS FOR LOWER CONSOLIDATED RESULTS YOY 1Q20 [in PLN million] 2,9 0,5 0,4 0,1 0,5 0,1 32,9 42,7 19,0 0,4 0,0 0,1 11,1 - 9,9 EBITDA Adj. ON+BIO Gaz Diesel+BIO LPG LPG Stacje Fuel AVIA Natural GazUEiG UEiG TradeaTradea Spółki Other Natural Produkty Centrum EBITDA Corporate Adj. Korekty Adjust-
Slide 15: Very good main financial ratios
VERY GOOD MAIN FINANCIAL RATIOS 1Q19 2Q19 3Q19 1Q20 CEL ▪ Current liquidity ratio has been 2018 2019 LTM LTM LTM LTM 2023 maintained at a high level – 1.24, i.e. above the minimum level assumed Financial liquidity ratio in strategy (current assets / short-term 1.33 1.41 1.34 1.33 1.45 1.24 min 1.2 l
Slide 16: Debt and financing
DEBT AND FINANCING Credit lines as of 31.03.2020 Main banks Total limit* Covenants (various at particular banks) Renewal PLN 100 m Credit lines in 4 main banks renewed mBank, ING Bank Śląski, Current liquidity ratio, net profit ratio, profit on sales ratio, EBITDA/interests, annually. The remaining
Slide 17: Agenda
AGENDA 1. Most important events 2. UNIMOT Group financial results 3. Financial results divided by segments 4. Outlook for future quarters 5. Appendix
Slide 18: Market environment of diesel oil
MARKET ENVIRONMENT OF DIESEL OIL Estimated land premium of biggest Polish diesel oil producers* [PLN/m3] Futher growth of diesel consumption – from 3,94 520 million m3 in 1Q19 to 3.89 million m3 in 1Q20 (source: POPiHN / Orlen) 470 420 Land premium needs to be perceived as a trend, not specific valu
Slide 19: Diesel and bio-fuels segment
DIESEL AND BIO-FUELS SEGMENT Sales volumes [thousand m3] Total revenues [PLN million] Adj. EBITDA* [PLN million] +43,1% +37,3% +257,4% 334,2 315,1 1 148 26,4 304,1 1 094 1 035 262,4 882 20,9 230,5 220,2 902 200,1 728 754 16,8 18,9 15,9 9,0 7,4 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 3Q18 4Q18 1Q19 2Q19 3
Slide 20: LPG segment
LPG SEGMENT Sales volumes [thousand ton] Total revenues [PLN million] Adj. EBITDA* [PLN million] +32,6% +29,5% +14,8% 47,8 48,4 99,6 3,7 44,1 93,2 86,2 82,9 83,7 88,6 39,4 33,4 33,2 36,5 71,9 2,6 2,3 2,1 1,5 1,5 1,3 3Q18 3Q19 1Q19 2Q19 3Q19 4Q19 1Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 3Q18 4Q18 1Q19
Slide 21: Natural gas segment
NATURAL GAS SEGMENT Sales volumes [thousand MWh] Total revenues* [PLN million] Adj. EBITDA* [PLN million] +183,9% +98,0% +352,1% 240,4 208,0 22,1 3,2 18,8 14,5 0,7 132,0 0,4 91,2 11,1 10,8 85,3 77,5 67,0 6,9 7,1 -1,0 -0,7 -1,2 -3,7 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q2
Slide 22: Electricity segment
ELECTRICITY SEGMENT Sales volumes [thousand MWh] Total revenues* [PLN million] Adj. EBITDA* [PLN million] +35,2% +13,1% +15,2% 634,5 583,6 158,5 163,4 2,9 522,7 139,8 136,8 490,0 2,5 431,7 121,0 328,1 1,8 1,8 78,5 1,5 243,0 1,2 52,6 0,3 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 3Q18 4Q18 1Q19 2Q19 3Q19 4Q1
Slide 23: Segment Stacje Paliw
SEGMENT STACJE PALIW Sales volumes generated by all AVIA Total revenues* [PLN million] Adj. EBITDA* [PLN million] fuel stations [in million liters] +52,7% +21,9% 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 22,2 19,9 20,6 9,5 9,6 17,1 9,0 8,8 -0,2 -0,1 15,5 -0,3 13,3 14,5 7,2 -0,6 4,7 5,2 -0,7 -0,8 -1,6 3Q18
Slide 24: Other refined products segment
OTHER REFINED PRODUCTS SEGMENT Volumes [in thousand tonnes] Revenues [in PLN million] EBITDA [in PLN million] ▪ The segment’s results include trading in lubricants in China and Ukraine and sale of bitumens in Poland ▪ Bitumen products business - the COVID-19 epidemic in 15,5 0,20 Europe started at t
Slide 25: Micromobility: Green Electricity Sp. z o.o.
MICROMOBILITY: GREEN ELECTRICITY SP. Z O.O. (non-consolidated company) Green Electricity uses platform Number of users [tousand] 700 pioneer of micromobility and multimodal transport in Poland 600 500 Revenues for 2018: PLN 14.3m 400 Revenues for 2019: PLN 22.8m 300 Revenues for 1Q20: PLN 3.4m 200 O
Slide 26: Agenda
AGENDA 1. Most important events 2. UNIMOT Group financial results 3. Financial results divided by segments 4. Outlook for future quarters 5. Appendix
Slide 27: Challenges for the incoming quarters
CHALLENGES FOR THE INCOMING QUARTERS Uncertainty connected with COVID-19 epidemic GDP decrease in Poland and Europe Growing unemployment Decrease of global demand for petroleum products Challenges Actions taken Effective business in the context of a decrease of global Flexible import and wholesale a
Slide 28: Future quarters outlook
FUTURE QUARTERS OUTLOOK ▪ Effective sales in the context of challenges ▪ After a difficult ▪ Development of the network in connected with COVID-19 epidemic and its period at the turn Poland and Ukraine - focusing consequences (a possible decrease of fuel demand) of March and on the most effective st
Slide 29: Potential for further value growth
POTENTIAL FOR FURTHER VALUE GROWTH Consolidated forecast of adjusted EBITDA 100 120 000 Volume (right axis; units) December 2019: entering to sWIG80 [PLN million] 90 Price (left axis; PLN) ▪ Much higher turnover in 2019 100 000 80 ▪ Restoration of share price in 2019 63,7* 62,3 ▪ Significant fall in
Slide 30: Agenda
AGENDA 1. Most important events 2. UNIMOT Group financial results 3. Financial results divided by segments 4. Outlook for future quarters 5. Appendix
Slide 31: Strategy for 2018-2023
STRATEGY FOR 2018-2023 Primary goal: Building the Group’s value for the shareholders through increase of business efficiency and long-term diversification of activity. Financial security of our business activity as one of the most important values. Strategic goals: in 2023 Assumption from strategy:
Slide 32: Bilans
BILANS [PLN thousand] 31.12.2019 31.03.2020 [PLN thousand] 31.12.2019 31.03.2020 Fixed assets, including: Equity, including: Tangible assets 39 343 40 327 Share capital 8 198 8 198 Other capitals 181 140 181 140 Intangible assets 18 578 18 605 Total equity 246 936 236 268 Fixed assets in total 80 39
Slide 33: Business profile
BUSINESS PROFILE LIQUID PETROL GAS ELECTRICITY OTHER REFINED FUELS STATIONS FUELS PRODUCTS DIESEL OIL BIO-FUELS LPG GAS FUEL STATIONS NATURAL GAS ELECTRICITY BITUMENS LUBRICANTS, CRUDE OIL 33
Slide 34: Structure of the capital group
STRUCTURE OF THE CAPITAL GROUP 100% 100% 100% 100% 100% 100% UNIMOT System Tradea UNIMOT Energia i Gaz UNIMOT Paliwa Sp. z o.o. Unimot Unimot Sp. z o.o. Sp. z o.o. Sp. z o.o. (ealier Tankuj24.pl Sp. z o.o.) Ukraine LLC Asia LLC construction and wholesale and retail electricity trading, sales of fuel
Slide 35: Selected operational and financial data for 2019 – main subsidiaries
SELECTED OPERATIONAL AND FINANCIAL DATA FOR 2019 – MAIN SUBSIDIARIES [PLN thousand] Tradea UEiG UNIMOT System Volumes [MWh] 586 871 72 450 8 759 Revenues 135 052 17 681 1 332 EBITDA 2 363 473 291 Operational profit 2 329 411 44 Net profit 1 933 419 -36 Current assets 42 533 14 868 2 468 Equity 20 61
Slide 36: NIT and NRT - current regulations
NIT and NRT - CURRENT REGULATIONS The performance obligation for NIT in 2020 (share The performance obligation for NRT in 2020 (average of biofuels): 8.5%* carbon footprint): 88.454 gCO2eq/MJ** It is possible to decrease to the level of 6.97% (annual settlement) using the reduction ratio (0.82) NATI
Slide 37: Shareholders of UNIMOT S.A.
SHAREHOLDERS OF UNIMOT S.A. Shareholder No. of shares Share in capital No. of votes Share in votes Unimot Express Sp. z o.o. 3 593 625 43,84% 3 593 625 42,04% Zemadon Limited 1 616 661 19,72% 1 966 661 23,01% Robert Brzozowski – Vice-President of the Board 32 030 0,39% 32 030 0,37% Marek Moroz – Vic
Slide 38: Dictionary
DICTIONARY Bio-fuels blending – physical blending of fossil fuels with biocomponents that come from processing biomass. Since 2017 bio-blending has been an obligatory element to partially fulfil the National Indicative Target. In 2017 the minimum 50% of the obligation had to be fulfilled by bio-blen
Slide 39: Investor Relations UNIMOT S.A.
This presentation has been prepared by Unimot S.A. (“Company”) for its shareholders, analysts, and other contractors. This presentation has been prepared solely for information and is not an offer to buy or sell or a solicitation of an offer to buy or sell any securities or instruments. This present