ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — Q3 2009 Earnings Presentation
31 slides from ORLEN Spolka Akcyjna's earnings presentation, Nov 13, 2009
Slide 1: Good results in difficult macroeconomic environment
Good results in difficult macroeconomic environment PKN ORLEN consolidated financial results for 3 quarter 2009 Jacek Krawiec, CEO Sławomir Jędrzejczyk, CFO 13 November 2009 1
Slide 2: Agenda
Agenda Summary Financial results achieved in 3q 2009 Operating perspectives for 4q 2009 Supporting slides 2
Slide 3: Over PLN 900 m achieved at the net profit line in 3q 2009
Over PLN 900 m achieved at the net profit line in 3q 2009… 3q’08 2q’09 3q’09 Change y/y 23 057 16 770 18 649 PLN 423 m of reported operating profit. Revenues -19% PLN m 661 Positive EBIT acc. to LIFO. 512 423 EBIT 12% increase in crude oil -17% PLN m throughput (q/q). 1 169 940 98% production capaci
Slide 4: With depressed refining margins and low U/B differential
… with depressed refining margins and low U/B differential Further decrease of refining margin Growing crude oil prices and dramatically low U/B differential Average Brent Crude Oil price (USD/bbl) Model refining margin1, Ural/ Brent differential2 (USD/bbl) 9,7 9,5 115 Differential 2,6 1,8 6,5 5,5 6
Slide 5: Successful realization of operational plans
Successful realization of operational plans SALES INCREASE KEY INVESTMENT PROJECTS 7% increase (q/q) on all operated retail markets. Continuation of PX/PTA investment acc. to the In refining segment increase by 12% (q/q) in PKN schedule. ORLEN and Unipetrol. Building of Diesel Hydrodesulphurization
Slide 6: Agenda
Agenda Summary Financial results achieved in 3q 2009 Operating perspectives for 4q 2009 Supporting slides 6
Slide 7: Positive operating result acc. to LIFO and almost PLN 1 bn of net profit
Positive operating result acc. to LIFO and almost PLN 1 bn of net profit change change 2q'09 3q'09 3q'08 PLN m 1-3q'09 1-3q'08 y/y y/y 16 770 18 649 23 057 -19% Revenues 50 121 63 088 -21% 1 1 317 1 050 1 120 -6% EBITDA 2 698 4 526 -40% 661 423 512 -17% EBIT 763 2 724 -72% -928 -307 316 - LIFO effec
Slide 8: Stable level of cash flow despite tough macro environment
Stable level of cash flow despite tough macro environment change change 2q'09 3q'09 3q'08 PLN m 1-3q'09 1-3q'08 y/y y/y 1 921 -827 238 -1 065 Cash Flow from operations 2 245 2 506 -261 872 -2 181 -382 -1 799 including: working capital change 1 -700 -1 322 622 -1 708 -388 -1 512 1 124 Cash Flow from
Slide 9: Almost PLN 1 bn of positive credits revaluation
Almost PLN 1 bn of positive credits revaluation Debt Credits revaluation due to PLN appreciation is reducing the debt by almost PLN 1 bn. Positive exchange rates differences in credits denominated in USD at the level of PLN 550 m for 3q2009 were entered in equity, including PLN 395 m due to connecti
Slide 10: Significant increase of sales volumes in 3q2009
Significant increase of sales volumes in 3q2009 change change 2q09 3q09 3q08 th t 1-3q09 1-3q08 y/y q/q Sales volumes, 8 139 8 837 9 052 -2% 25 191 26 552 -5% including the following: 5 419 6 081 6 371 -5% Refining 17 130 18 601 -8% 1 523 1 630 1 537 6% Retail 4 493 4 271 5% 1 197 1 126 1 144 -2% Pe
Slide 11: High level of production capacity utilisation
High level of production capacity utilisation PKN ORLEN 3 598 3 594 3 573 3 586 3 870 PKN ORLEN – (3q2009) increase 102% 100% 100% of crude oil throughput 102% 108% before planned maintenance shutdowns of Hydrocracking and Hydrodesulphurization 3q08 4q08 1q09 2q09 3q09 Residue Units. UNIPETROL UNIPE
Slide 12: Positive operating result acc. to LIFO due to higher retail sales
Positive operating result acc. to LIFO due to higher retail sales, improvement of petrochemicals results and growing crude oil prices change change 2q09 3q09 3q08 PLN, m 1-3q09 1-3q08 y/y y/y 661 423 512 -17% EBIT, including the following segments: 763 2 724 -72% -267 116 828 -86% EBIT acc. to LIFO
Slide 13: Negative impact of macro factors off-set by inventory valuation effect
Negative impact of macro factors off-set by inventory valuation effect EBIT change PLN m PLN - 89 m 1500 623 1000 500 109 (626) 512 423 (195) 0 EBIT 3q08 Inventory valuation Macro Volumes Others EBIT 3q09 Increase of sales volumes in retail limited negative volumes effect in refining and petrochemic
Slide 14: Agenda
Agenda Summary Financial results achieved in 3q 2009 Operating perspectives for 4q 2009 Supporting slides 14
Slide 15: Difficult macroeconomic situation continues in 4q 2009
Difficult macroeconomic situation continues in 4q 2009 16 Refining margin of PKN ORLEN Group 2008 2009 średnia 2008 Average 2008 Average 2009 średnia 2009 12 8 6,4 USD/bbl 4,1 USD/bbl 4 0 styczeń January luty February marzec March kwiecień April maj May czerwiec June lipiec July sierpień August wrze
Slide 16: Structural debt reduction remains priority for next months
Structural debt reduction remains priority for next months Obligatory inventories Anwil Polkomtel Value of obligatory Preparation of information Selection of transactional inventories at the end of set and sending of information advisor – (August 2009). 3q2009 in PKN ORLEN Group memorandum for inves
Slide 17: Over PLN 2 bn of additional cash flow in 2009
Over PLN 2 bn of additional cash flow in 2009. CAPEX OPEX Working capital ~ PLN 1 bn ~ PLN 0,5 bn >PLN 0,5 bn Optimization of capital Limitation of operating costs Optimization of inventories. expenditures in whole year by over PLN 500 m in Change of payment 2009 to the level lower than comparison t
Slide 18: Thank You for Your attention
Thank You for Your attention For more information on PKN ORLEN, please contact Investor Relations Department: telephone: + 48 24 365 33 90 fax + 48 24 365 56 88 e-mail: ir@orlen.pl www.orlen.pl 18
Slide 19: Agenda
Agenda Summary Financial results achieved in 3q 2009 Operating perspectives for 4q 2009 Supporting slides 19
Slide 20: Macroeconomic environment in refining
Macroeconomic environment in refining PKN ORLEN model refining margin (Group)1) Decrease by 56% y/y to the level of 3,1 USD/b in 3q’09 7,0 7,1 7,7 5,3 4,6 3,6 3,1 3,1 1q'08 2q'08 3q'08 4q'08 1q'09 2q'09 3q'09 4q'09QTD Brent Crude Oil price Ural/Brent differential2) Decrease by 41% y/y to the level o
Slide 21: Macroeconomic environment in petrochemicals and financial sector
Macroeconomic environment in petrochemicals and financial sector PKN ORLEN model petrochemical margin (Group)1) Exchange rate PLN/USD and PLN/EUR2) Decrease by 23 % y/y to the level of 601 EUR/t in 3q’09 PLN/USD increase by 50% y/y and PLN/EUR increase by 30% 4,50 4,45 756 779 783 4,20 4,22 627 601
Slide 22: Refining segment
Refining segment. Segment results under strong pressure of macro environment and volumes EBIT change PLN - 141 m PLN, m 1000 588 800 600 400 (485) 200 278 (225) 137 0 (19) EBIT 3q'08 Inventory valuation Macro Volumes Other EBIT 3q'09 Positive inventories valuation effect due to growing crude oil pri
Slide 23: Retail segment
Retail segment. Further increase in fuel and non-fuel sales volumes EBIT change PLN + 124 m PLN, m 500 30 161 400 (36) 300 (31) 200 363 100 239 0 EBIT 3q'08 Fuel sales Non-fuel sales Fuel stations costs Other EBIT 3q'09 Continuation of operating profit increase due to consistent restructuring, rebra
Slide 24: Petrochemical segment
Petrochemical segment. Positive operating profit of the segment in 3q2009 EBIT change PLN, m PLN - 148 m 300 35 200 100 213 (130) (23) (30) 65 0 EBIT 3q'08 Invetories Macro Volumes Other EBIT 3q'09 valuation Petrochemical margin decrease limited by PLN depreciation vs. EUR caused decrease in operati
Slide 25: PKN ORLEN Group EBIT by segments in 3q2009
PKN ORLEN Group EBIT by segments in 3q2009 Others & PKN ORLEN PKN ORLEN PKN ORLEN ORLEN IFRS, PLN m Unipetrol consolidation Group Group (unconsolidated) Lietuva excludings 3q'09 3q'08 Reported EBIT 332 -10 -157 258 423 512 EBIT acc. to LIFO 46 -28 -153 251 116 828 Refining1 160 -90 -107 174 137 278
Slide 26: PKN ORLEN Group results breakdown by key companies in 3q2009
PKN ORLEN Group results breakdown by key companies in 3q2009 Others & PKN ORLEN PKN ORLEN PKN ORLEN ORLEN IFRS, PLN m Unipetrol consolidation Group Group (unconsolidated) Lietuva excludings 3q'09 3q'08 1 13 562 3 070 3 574 -1 557 18 649 23 057 Revenues EBITDA 568 139 -37 380 1 050 1 120 Depreciation
Slide 27: ORLEN Lietuva Group Key elements of the profit and loss account
ORLEN Lietuva Group Key elements of the profit and loss account1 change change 2q09 3q09 3q08 IFRS, USD m 1-3q09 1-3q08 y/y y/y 1 003 1 234 2 388 -48% Revenues 3 087 6 347 -51% 65 -11 24 - EBITDA 72 201 -64% 46 -33 6 - EBIT 11 154 -93% -10 -32 147 - EBIT acc. to LIFO -70 143 - 47 -22 -26 15% Net res
Slide 28: UNIPETROL Group Key elements of the profit and loss account
UNIPETROL Group Key elements of the profit and loss account1 change change 2q09 3q09 3q08 IFRS, CZK m 1-3q09 1-3q08 y/y y/y 15 795 18 732 29 899 -37% Revenues 49 040 79 129 -38% 584 866 1 638 -47% EBITDA 2 159 4 831 -55% -271 5 772 -99% EBIT -394 2 263 - -1 072 -103 1 240 - EBIT acc. to LIFO -1 505
Slide 29: Key production data
Key production data change change Key production data 3q09 2q09 3q08 y/y q/q Refinery in Poland 1 Processed crude (tt) 3 870 3 586 3 597 7,6% 7,9% Utilisation 108,3% 100,0% 102,0% 6,2 pp 8,3 pp Fuel yield 4 58,4% 66,6% 64,4% -5,9 pp -8,2 pp Middle distillates yield 5 38,3% 44,6% 44,3% -6,0 pp -6,3 p
Slide 30: Disclaimer
Disclaimer This presentation (“Presentation”) has been prepared by PKN ORLEN S.A. (“PKN ORLEN” or “Company”). Neither the Presentation nor any copy hereof may be copied, distributed or delivered directly or indirectly to any person for any purpose without PKN ORLEN’s knowledge and consent. Copying,
Slide 31: Contact Investor Relations Department
For more information on PKN ORLEN, please contact Investor Relations Department: telephone: + 48 24 365 33 90 fax + 48 24 365 56 88 e-mail: ir@orlen.pl www.orlen.pl 31