Tauron Polska Energia S.a. · GPW:TPE

Tauron Polska Energia — FY2011 Earnings Presentation

34 slides from Tauron Polska Energia's earnings presentation, Mar 19, 2012

  1. Slide 1: TAURON Group Results for 2011

    19 March 2012 TAURON Group Results for 2011

  2. Slide 2: Disclaimer

    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 its subsidiaries shall be held accountable for any damage resulting fro

  3. Slide 3: The most important events of 2011

    The most important events of 2011 11 March Signing of agreements concerning the gas and steam-fired unit at Elektrociepłownia Stalowa Wola: agreement for operation of Elektrociepłownia Stalowa Wola, agreement for electricity supply and agreement for gas supply 23 March Sales of 11.9% of Company shar

  4. Slide 4: Electric energy market price trends

    Electric energy market price trends Electric energy Platforms: 2011 2012 2012/2011 TGE, TFS, GFI, Price Volume Price Volume Price Volume GPW-POEE PLN/MWh GWh PLN/MWh GWh % % Forward BASE (Y+Q+M) 195.36 106,812 202.31 115,868 3.6% 8.5% Forward PEAK (Y+Q+M) 219.01 14,744 228.25 13,436 4.2% -8.9% Forwa

  5. Slide 5: Completed Group Restructuring

    Group Restructuring Ownership structure rearrangement Business model implementation  Sales of assets unrelated to the core business for the total amount of PLN  Processes of assets merger under particular segments of the 20.4 million, including: Group‟s operation and registration of the following

  6. Slide 6: Implementation of investment program

    Implementation of investment program ZEC Bielsko Biała – new heating unit Elektrociepłownia Tychy – new co-generation unit and reconstruction of fluidised bed boiler (biomass burning)  Capacity – 50 MW e / 182 MW t  Scheduled commissioning – mid 2013  Capacity – 50 MW e / 86 MW t  Scheduled comm

  7. Slide 7: Implementation of investment program (2)

    Implementation of investment program (2) Elektrownia Stalowa Wola – new steam and gas-fired unit Wind Farm – Wicko  Capacity – 400 MW e / 240 MW t  Commencement of the project – 2010; scheduled  Capacity – 40 MW e commissioning – H1 2015  Scheduled commissioning – 2013 Status as of 31 December 2

  8. Slide 8: Implementation of investment program (3)

    Implementation of investment program (3) Elektrownia Jaworzno III – modernization of boilers Elektrownia Jaworzno III – new coal-fired unit  Scope – adjustment of six OP-650k type boilers to lower  Capacity – 910 MW e nitrogen oxides emission standards which will be binding in  Scheduled commissi

  9. Slide 9: Investment expenditure

    Investment expenditure 3 000 2 504 46 2 500 30 56.2% 2 000 1 603 1 285 38 1 500 22 867 44 1 000 147 921 500 384 144 178 0 PLN million Wykonanie 2010 2010 Wykonanie 2011 2011 Wydobycie Mining Generation Wytwarzanie OZE RES Distribution Dystrybucja Sprzedaż Supply Pozostałe Other  In 2011 the TAURON

  10. Slide 10: Key operational data

    Key operational data Q4 Q4 Change Change 2010 2011 2010 2011 (dynamics) (dynamics) Production of commercial coal 1.12 0.8 -28.5% 4.5 4.58 1.7% (million t) Electricity generation (net production) 5.78 5.08 -12.2% 21.32 21.38 0.3% (TWh) including: from renewable sources 0.25 0.22 -11.9% 1.1 0.99 -9.9%

  11. Slide 11: Financial results for Q4 2011

    Financial results for Q4 2011 TAURON Group’s revenues [PLN million] TAURON Group’s EBITDA by segment [PLN million]; EBITDA structure [%] 6 000 5 588 800 599 652 24.8% 700 8.9% 4 478 10% 5 000 1 052 6% 600 11% 1.3% 500 4 000 49% 400 41% 3 000 4 536 300 5% 2% 200 2 000 44% 43% 100 4% 0 -3% -3% 1 000 -

  12. Slide 12: Financial results of TAURON Group for 2011

    Financial results of TAURON Group for 2011 TAURON Group’s revenues [PLN million] TAURON Group’s EBITDA by segments [PLN million]; EBITDA structure [%] 25 000 3 500 3 023 20 755 2 758 9.6% 3 000 4% 34.5% 3% 10% 20 000 7% 15 429 4 349 2 500 15 000 2 000 41% Including 42% 6.3% GZE Group: 1 500 PLN 13.4

  13. Slide 13: Financial results of GZE Group for 2011

    Financial results of GZE Group for 2011 GZE’s EBITDA by segments [PLN million]; EBITDA structure [%] GZE’s EBIT [PLN million] 600 508 400 342 500 432 17.7% 3% 25.3% 3% 300 273 3% 400 3% 300 80% 200 72% 200 100 100 22% 14% 0 0 2010 2011 2010 2011 BUS BUD VBSP BURSE GZE’s Net Profit [PLN million] 400

  14. Slide 14: Financial results for 2011 - EBITDA

    Financial results for 2011 - EBITDA Change in EBITDA by segments [PLN million and %]; EBITDA margin per segment [%] 17.9% 14.6% 8.9% 18.4% 69.7% 27.4% 2.1% 19.6% - 3 500 18.4% 96.6 30.6 1.2 3 023 3 000 142.0 2 758 (6.0) (10.9) 11.0 2 500 -5% -1% 10% 12% 50% 36% 2 000 1 500 1,399 1 000 Fin 500 0 PLN

  15. Slide 15: Financial results for 2011 - EBIT

    Financial results for 2011 - EBIT Change in EBIT and operational factors (PLN milllion); EBIT margin (%) PLN million 7.8% 1 800 9.1% 9.8% 146 25 34 1 600 91 18 14 1 400 -93 -23 1 200 1 000 800 1 611 1 399 600 400 200 0 EBIT 2010 Wolumen Energy supply Cena sprzedaży Ceny zakupu Przychody z KDT Revenu

  16. Slide 16: Changes in cash flow level

    Changes in cash flow level Financial resources - changes in 2011 5 000 1 411 4 000 (224) 1 566 (539) 3 000 2 214 2 000 1 472 (5 689) (2 302) 3 300 1 000 506 (263) (147) 0 2 510 -1 000 87 (3 380) -2 000 (8) (467) -3 000 PLN M Increase Decrease 15

  17. Slide 17: Level of Group's debt

    Level of Group's debt Net financial debt (PLN million), net financial debt/EBITDA (x) 0.3x 0.01x -0.02x* 0.16x* 1.33x* 5 000 4 537 4 000 3 000 1 899 2 000 1 4921 474 1 320 1 376 1 321 1 032 885 1 000 506 0 31.12.2009 31.12.2010 30.06.2011 30.09.2011 31.12.2011 financial debt cash Net financial debt/

  18. Slide 18: Compensation due to termination of Long-Term Contracts

    Compensation due to termination of Long-Term Contracts Revenue due to compensation 484 -9.5% 438 -5.3% 415 180 164 160 145 145 147 138 140 129 120 108 100 95 88 80 74 73 60 40 30 20 0.8% 4.5% 5.0% 4.0% 1.9% 4.2% 3.5% 2.0% 1.4% 1.9% 2.2% 2.5% 0 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010

  19. Slide 19: Prime costs structure

    Prime costs structure PLN million Structure of prime costs 12 000 9 894 9 467 4.5% 10 000 2% 1% 26% 8 000 27% 6% 6% 6 000 23% 23% 4 000 28% 29% 2 000 14% 15% 0 2010 2011 Depreciation and impairment Consumption of energy and materials Outsourced services Taxes and fees Costs of employee benefits Othe

  20. Slide 20: Implementation of efficiency improvement program

    Implementation of efficiency improvement program Efficiency improvement program 2010-2012 cumulated OPEX savings PLN 1 PLN million billion 339 1 000 PLN 194 million PLN 10 million (cumm.); (cumm.); 800 including PLN including PLN 5 130 million in 2011 million in 2011 PLN 10 million PLN 399 million (

  21. Slide 21: Key directions of development and growth

    Key directions of development and growth Increase  Commencement of integration process with GZE Group in the  Achievement of synergies from integration of segments Group’s value  Continuation of costs efficiency improvement program  Obtaining preferential funding from EIB/EBRD for projects in Fu

  22. Slide 22: Thank You – Q&A

    Thank You — Q&A oN # TAURON POLSKA ENERGIA 21

  23. Slide 23: Investor Relations contact details

    TAURON Polska Energia S.A. ul. ks. Piotra Ściegiennego 3, 40-114 Katowice tel: +48 32 774 27 06, fax +48 32 774 25 24 Investor Relations Section 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 mag

  24. Slide 24: Additional Information

    Additional Information oN # TAURON POLSKA ENERGIA 23

  25. Slide 25: BASE transactions for 2012

    BASE transactions for 2012 Prices of Base contracts concluded for 2012 210 208 206 204 Price [PLN/MWh] 202 200 198 196 194 192 190 2011-01-01 2011-05-01 2011-08-29 2011-12-27 Y-12 Q1-12 Q2-12 Q3-12 Q4-12 Average price of concluded transactions [PLN/MWh]: Volume [GWh] Annual 202.61 100,796 Quarterly

  26. Slide 26: PEAK transactions for 2012

    PEAK transactions for 2012 Prices of Peak contracts concluded for 2012 236 234 232 230 Price [PLN/MWh] 228 226 224 222 220 218 216 2011-01-01 2011-05-01 2011-08-29 2011-12-27 Y-12 Q1-12 Q2-12 Q3-12 Q4-12 Average price of concluded transactions [PLN/MWh]: Volume [GWh] Annual 228.52 11,616 Quarterly 2

  27. Slide 27: BASE transactions for 2013

    BASE transactions for 2013 Prices of Base contracts concluded for 2013 224 222 220 Price [PLN/MWh] 218 216 214 212 210 208 2011-01-01 2011-05-01 2011-08-29 2011-12-27 Y-13 Q1-13 Q2-13 Q3-13 Q4-13 Average price of concluded transactions [PLN/MWh]: Volume [GWh] Annual 215.37 10,205 Quarterly Monthly T

  28. Slide 28: BASE transactions for 2014

    BASE transactions for 2014 Prices of Base contracts concluded for 2014 232 230 228 Price [PLN/MWh] 226 224 222 220 218 2011-01-01 2011-05-01 2011-08-29 2011-12-27 Y-14 Q1-12 Q2-13 Q3-13 Q4-13 Average price of concluded transactions [PLN/MWh]: Volume [GWh] Annual 222.68 1,472 Quarterly Monthly TOTAL

  29. Slide 29: Mining – key financial data

    Mining – key financial data Change: Revenue EBITDA EBIT in the segment (PLN million) 1 400 1 171 1 200 1 081 300 273 1 000 250 210 800 200 600 150 400 100 200 111 105 50 22 6 5 0 0 2010 2011 -2 -50 -20 -44 -100 Q4 2010 Q4 2011 28

  30. Slide 30: Generation from conventional sources – key financial data

    Generation from conventional sources – key financial data Change: Revenue EBITDA EBIT in the segment (PLN million) 2 000 7 000 6 436 1 789 1 786 1 800 5 863 6 000 1 600 5 000 1 400 1 200 4 000 1 000 3 000 800 2 000 600 1 198 1 187 1 000 656 621 400 261 278 200 129 137 0 2010 2011 0 Q4 2010 Q4 2011 2

  31. Slide 31: Generation from renewable sources – key financial data

    Generation from renewable sources – key financial data Change: Revenue EBITDA EBIT in the segment (PLN million) 200 50 47 181 180 167 45 160 40 140 126 35 32 115 30 120 30 101 24 100 89 25 80 20 14 60 15 40 10 7 20 5 0 0 2010 2011 Q4 2010 Q4 2011 30

  32. Slide 32: Distribution – key financial data

    Distribution – key financial data Change: Revenue EBITDA EBIT in the segment (PLN million) 5 000 4 668 1 400 4 509 1 256 4 500 1 184 1 200 4 000 3 500 1 000 3 000 800 2 500 2 000 600 1 500 1 138 1 280 400 291 269 1 000 614 509 200 144 500 93 0 0 2010 2011 Q4 2010 Q4 2011 31

  33. Slide 33: Supply – key financial data

    Supply – key financial data Change: Revenue EBITDA EBIT in the segment (PLN million) 13 842 14 000 12 094 4 000 3 859 12 000 3 401 3 500 10 000 3 000 8 000 2 500 2 000 6 000 1 500 4 000 1 000 2 000 500 192 184 289 279 71 68 0 0 2010 2011 -19 -22 -500 Q4 2010 Q4 2011 32

  34. Slide 34: Other – key financial data

    Other – key financial data Change: Revenue EBITDA EBIT in the segment (PLN million) 598 594 200 193 190 600 180 500 160 140 400 120 300 100 80 63 200 60 52 117 34 86 72 40 100 21 35 20 0 0 2010 2011 Q4 2010 Q4 2011 33

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