Ina-industrija Nafte D.d. · ZSE:INA
Ina-industrija Nafte D.d — Shareholder Meeting (June 2014)
16 slides from Ina-industrija Nafte D.d's shareholder meeting presentation, Jun 24, 2014
Slide 1: INA's business results in 2013
INA’s business results in 2013 Annual General Meeting of INA, d.d. Zagreb June 24, 2014 1
Slide 2: Highlights of our business performance in 2013
Highlights of our business performance in 2013 Solid trend in operational safety, key HSE indicator LTIF of 1.6 (halved since 2010) Investments of HRK 2 bn, increased by almost 60% compared to 2012 55% of EBITDA reinvested, in line with integrated oil and gas peers Robust operating cash flow
Slide 3: Agressive investments growth in 2013
Agressive investments growth in 2013 Investments in 2012 and 2013 Investments 2009-2013 HRK millions HRK millions 2,013 2,013 +57% 72 656 358 1,347 545 1,286 1,286 83 +19% HRK 12 bn 120 2,475 457 7,449 1,655 1,396 1,166 +87% 746 Exploration & Production Refinery modernization 2012 2013 2,012 2,013 R
Slide 4: EBITDA of HRK 3.7 bn, profit impacted by special items, Syrian amortization
EBITDA of HRK 3.7 bn, profit impacted by special items, Syrian amortization Total EBITDA of INA Group Total net profit excl. special items of INA Group HRK millions HRK millions 4,581 3,672 1,887 953 2012 2013 2012 2013 Impairment of Syrian and downstream assets in the value of HRK 1,504 and 738 m
Slide 5: Financials and key volumetric measures at a closer look
Financials and key volumetric measures at a closer look Average daily hydrocarbon production HRK mln 2012 2013 ‘13/’12 % Mboepd Syria 3.1 -17% Net sales revenues 29,895 27,444 (8) -12% excl. Syria EBITDA reported 4,581 3,672 (20) 45.5 40.2 Operating profit reported 1,359 (1,570) n.a. Operating prof.
Slide 6: Financial position improved further
Financial position improved further Operating Cash Flow Net indebtedness (left axis, HRK bn) (HRK bn) and Gearing ratio (right axis, %) 4.5 12.0 Overdue liabilities 50 3.7 10.0 40 3.3 -3 pp 8.0 +21% 30 6.0 1.8 1.6 20 4.0 -29% 2.0 10 0.0 0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Increasin
Slide 7: Significantly improved operational and safety performance
Significantly improved operational and safety performance 2011 2012 2013 73% WHOLESALE 67% MARKET SHARE 66% CROATIA 160 130 NUMBER OF MODERNIZED 7 FILLING STATIONS 63 (CUMULATIVE NUMBER OF 2 EPLORATION 7 1 WELLS DRILLED IN CROATIA LTIF= Lost time injury 2.6 frequency 2.1 PRODUCTION DECLINE OF 6% 1.6
Slide 8: 2013 Business Highlights – Exploration & Production
2013 Business Highlights – Exploration & Production EBITDA Exploration and development wells in Croatia (HRK mln) development - offshore development - onshore 2,152 exploration - offshore exploration - onshore 1 Revoked 978 2 concessions 5,901 6 5 4,435 5,356 5,035 2 3,459 5 1 1 1 2 2009 2010 2011 2
Slide 9: Overview of the downstream environment
Overview of the downstream environment Croatia: multi-year weakness GDP growth in different country groups and Croatia (%) Refined product demand in the region and Croatia 8 120% EU SEE Croatia 2007=100% 6 110% 4 100% 2 0 90% Croatia -2 Bosnia 80% -4 Slovakia -6 70% Hungary Slovenia -8 60% 2007 2008
Slide 10: Overview of the downstream environment: Bad news for refining
Overview of the downstream environment Bad news for refining Urals MED cracking refinery margins (USD/bbl) FOB MED crack spreads (USD/t) 8 200 6 150 100 4 50 2 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 -50 0 -100 -2 -150 -4 -200 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Mar-08 Ma
Slide 11: The global market
The global market US bans on crude exports increases processing and pushes motor fuels transatlantic URAL BRENT @ 111 WTI @ 114 USD/BBL @ 106 USD/BBL USD/BBL Lower crude prices allow US refiners to push motor fuels transatlantic Large, modern refineries from the East look to Europe to place their pr
Slide 12: 2013 Business Highlights – Refining & Marketing (inc Retail)
2013 Business Highlights – Refining & Marketing (inc Retail) EBITDA Retail sales volumes Sales by market (HRK mln) (kt) (kt) 2009 2010 2011 2012 2013 1,042 Croatia 1,019 1828 +3% 1877 117 -2% (287) (164) (546) (418) (469) Reported (1,052) 2012 2013 CCS (1,541) 2012 2013 Bosnia and Herzegovina Key dr
Slide 13: INA's market performance: increased market share despite market shrinkage and fierce competition
INA’s market performance: increased market share despite market shrinkage and fierce competition INA’s motor fuel market share in Croatia INA’s motor fuel market share in Slovenia 80% 12% Start of full 10% Completion of large- 75% wholesale 8% scale refinery supply of modernizetion 70% Tifon 6% inve
Slide 14: Corporate Social Responsibility in 2013
Corporate Social Responsibility in 2013 DONATION AND SPONSORSHIPS AWARDS INA provided assistance and support to: children and youth GOLDEN INDEX in three categories: people with special needs Participation in students’ projects, healthcare Investment in students’ associations, demining proje
Slide 15: Outlook and focus of management for 2014 and the medium term
Outlook and focus of management for 2014 and the medium term Expected CAPEX distribution in 2014 • Despite worsening regulatory environment, 12% E&P especially burdening the gas business and 9% R&M upstream production, investment level in 2014 20% 58% Retail is to be kept at the 2013 level of HRK 2
Slide 16: Disclaimer
Disclaimer "This presentation and the associated slides and discussion contain forward-looking statements. These statements are naturally subject to uncertainty and changes in circumstances. Those forward-looking statements may include, but are not limited to, those regarding capital employed, capit
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