Tauron Polska Energia S.a. · GPW:TPE
Tauron Polska Energia — H1 2013 Earnings Presentation
32 slides from Tauron Polska Energia's earnings presentation, Aug 22, 2013
Slide 1: TAURON Group's H1 2013 financial results
TAURON Group’s H1 2013 financial results Warsaw, August 22, 2013
Slide 2: Legal disclaimer
Legal 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 any of its subsidiaries shall be held accountable for any damage
Slide 3: Key financial parameters
Key financial parameters H1 2013 Q2 2013 Sales revenue PLN 9 705m (-21% y/y) PLN 4 542m (-22% y/y) EBITDA PLN 2 052m (-1% y/y) PLN 831m (-25% y/y) Net profit PLN 891m (no change y/y) PLN 311m (-37% y/y) CAPEX PLN 1 350m (+10% y/y) PLN 809m (+12% y/y) Net debt/EBITDA 1.31 1.31 3
Slide 4: Key events summary
Key events summary TAURON – events prior to June 30, 2013 TAURON‟s BBB rating with a stable outlook affirmed by Fitch final resolution of the dispute with the CNEE-COEG consortium of related to the selection of the bid for the construction of the power generation unit at Elektrownia Jaworzno III
Slide 5: Macroeconomic and market situation
Macroeconomic and market situation Poland’s GDP* Industrial production sold and electricity consumption (y/y change)* 5% 12% 10% 4% 8% 3% 6% 4% 2% 1.2% 2% 0.8% 1% 0% -2% 0% -4% 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'
Slide 6: Key operating data - Q2 2013
Key operating data - Q2 2013 tons m Coal production and sales TWh Electricity and heat generation PJ 2,0 5 3 -8.8% 0.31 1,6 4 0.34 1.48 2 1,2 1.36 0.51 24.4% 3 0.41 1.93 1.94 0,8 2 3.91 4.29 0.90 8.8% 0.94 0.5% 1 4.4% 9.7% 0,4 1 0,0 0 0 2Q 2012 2Q 2013 2Q 2012 2Q 2012 2Q 2013 2Q 2013 węgiel handlowy
Slide 7: Key operating data – H1 2013
Key operating data – H1 2013 tons m Coal production and sales TWh Electricity and heat generation PJ 4 12 12 10 10 3 0,60 0.65 9,72 3,00 8 -7.7% 9,43 8 0,91 24.7% 2.57 0.73 2 6 6 2,05 1.73 16.7% 8,59 9,15 4 -3.0% 4 18.5% 6.5% 1 2 2 0 0 0 H1 2012 H1 2013 1H 2012 H1 2012 1H 2013 H1 2013 węgiel handlow
Slide 8: Key financial data – Q2 2013
Key financial data – Q2 2013 m PLN Sales revenue m PLN Net profit 7 000 5 859.1 600 6 000 4 541.9 495.5 500 677.4 5 000 -15.3% 1 382.2 400 4 000 573.5 310.6 1 347.8 300 3 000 -2.5% -37.3% 200 2 000 3 799.5 2 620.7 -31.0% 100 1 000 0 0 2Q 2012 2Q 2013 2Q 2012 2Q 2013 Electricity Energia elektryczna D
Slide 9: Key financial data – H1 2013
Key financial data – H1 2013 PLN m Sales revenue PLN m Net profit 14 000 12 314.0 1 200 12 000 9 704.9 1 000 890.2 1 494.5 890.6 10 000 2 909.7 1 228.7 -17.8% 800 8 000 2 818.7 600 6 000 -3.1% 0.04% 400 4 000 7 909.8 5 657.5 -28.5% 200 2 000 0 0 1H 2012 1H 2013 1H 2012 1H 2013 Electricity Energia el
Slide 10: EBITDA – Q2 2013
EBITDA – Q2 2013 PLN m 1 400 18.9% 17.2% -11.9 % 11,4% 68,5% 39,3% 5,9% 16.4% 6.2% - 18.3% 1 200 1 000 411.4 -16.1 96.8 8.5 800 6.3 -10.0 12.9 431.1 -348.5 -10.8 -14.5 600 694.9 400 399.9 200 0 EBITDA 2Q Wydobycie Mining Wytwarzanie Generation Ciepło Heat OZE RES Distribution Sprzedaż Dystrybucja Su
Slide 11: Prime costs structure
Prime costs structure PLN m 6 000 5 332 5 076 1% 5 000 1% 5.0% 25% 27% 4 000 8% 6% 3 000 22% 25% 2 000 23% 26% 1 000 14% 21% 0 1H 2012 1H 2013 Amortyzacja Depreciationi and odpisy aktualiz. impairment ŚT i WN charges of Zużycie materiałów Consumption i energii of materials and energy Usługi obce Ext
Slide 12: Generation – impairment charge
Generation – impairment charge Assets that were written down in H1 2013: Balance sheet value Balance sheet as of June Impairment value as of June Unit Capacity 30, 2013 (pre- value 30, 2013 (post- impairment) (PLN m) impairment) (PLN m) (PLN m)* Elektrownia Łaziska - units 1, 2 2x125 MW 29.3 29.3
Slide 13: Generation – prospects for 2013
Generation – prospects for 2013 Factors that may have a positive impact on the Factors that may have a negative impact on the earnings in H2 2013: earnings in H2 2013: • decline of electricity market prices – realizing a higher margin • higher fixed costs (upgrades, external services, labor costs) o
Slide 14: Distribution – key elements
Distribution – key elements PLN m Regulatory Asset Base (RAB) TAURON Distribution 100.0% 14 000 Negative impact of the planned changes to WACC (by approx.. 12 000 12 715 82.0% 13 225 1.15 percentage point) on the Distribution‟s EBITDA in 2014 is 10 000 estimated to be worth approximately PLN 170m, a
Slide 15: Debt and financing
Debt and financing PLN m TAURON Group’s long term debt structure as of TAURON Group’s debt maturity June 30, 2013 (in PLN m) 3 500 3 142 bonds obligacje 3 000 kredyty z EBI EIB loans 2 500 preferential pożyczki terms loans preferencyjne z from National/Regional 2 000 Environment Protection Funds NFO
Slide 16: CAPEX
CAPEX Capacity Capacity Investment project Type Tauron’s share Progress 2013 2014 2015 2016 2017+ (MWt) (MWe) Elektrownia Jaworzno III hard coal-fired unit 100% 910 1.7% Elektrownia Stalowa Wola CCGT unit 50% 240 450 33.9% ZW Tychy cogeneration unit 100% 86 50 0.8% ZW Nowa turbogenerator TG 50 100%
Slide 17: OPEX reduction program
OPEX reduction program Savings Savings planned for Segment realized Progress % Main initiatives 2013-2015 in H1 2013 Implementation of the ultimate business model, elimination of the redundant functions Change of the way expenses are classified as CAPEX or costs Distribution PLN 71m PLN 416m 17%
Slide 18: Summary – key factors
Summary – key factors Decline of WACC – negative impact on Introduction of the capacity market Distribution’s EBIT in 2014 mechanisms (cold back up and cold back up for intervention purposes) Falling electricity market prices – negative impact on TAURON Generation’s EBIT in 2014 Hard coal price nego
Slide 19: Thank you – Q&A
Thank you – Q&A Investor Relations Office 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 magdalena.wilczek@tauron-pe.pl tel. + 48 32 774 25 38 19
Slide 20: Mining
Mining PLN m Financial data PLN m EBIT bridge 400 375.6 357.2 70 350 4,5 -19,1 60 300 54,6 250 50 0,2 -1,8 200 38,5 40 150 30 100 80.6 54.6 64.5 38.5 20 50 0 10 2Q 2012 2Q 2013 0 EBIT 2Q 2012 Wolumen sprzedaży Cena sprzedaży Jedn. koszt własny Pozostałe EBIT 2Q 2013 Coal węgla sales Coal sales Own p
Slide 21: Generation (conventional sources)
Generation (conventional sources) PLN m PLN m EBIT bridge Financial data 150 97.7 1 400 1 188.3 1 200 1 089.0 50 1 000 800 -50 -155.5 600 -150 400 219.3 97.7 16.4 31.9 9.7 200 -250 66.7 0 -261.5 -236.7 -37.0 -200 -350 -129.2 -54.6 -400 -261.4 -450 2Q 2012 2Q 2013 EBIT 2Q 2012 Przychody z tyt. LTC te
Slide 22: Renewable Energy Sources (RES)
Renewable Energy Sources (RES) PLN m Financial data mln zł EBIT bridge 70 63,7 60 60 11,6 49,3 50,9 50 50 -1,2 38,9 38,9 40 34,9 40 30 26,0 30 1,1 0,2 26,0 -23,1 20 20 -1,5 10 10 0 2Q 2012 2Q 2013 0 EBIT 2Q 2012 Wolumen Wolumen Cena sprzedaży Koszty stałe Pozostała Pozostałe EBIT 2Q 2013 Sales volum
Slide 23: Distribution
Distribution PLN m Financial data PLN m EBIT bridge 1 600 1 485.1 1 468.6 500 1 400 80,3 1 200 400 351,8 353,7 1 000 16,5 9,1 6,0 800 -74,3 300 -21,6 -14,1 571.1 577.4 600 351.8 353.7 400 200 200 100 0 2Q 2012 2Q 2013 0 EBIT 2Q 2012 Cena sprzedaży Wolumen Opłaty Cena zakupu Cena zakupu Koszty stałe
Slide 24: Supply
Supply PLN m Financial data PLN m EBIT bridge 4 500 4 215.1 4 202.7 300 4 000 59,7 12,7 3 500 250 1,7 239,4 3 000 -13,4 200 43,7 2 500 145,7 23,0 2 000 150 1 500 100 -33,6 1 000 500 151.0 145.7 247.9 239.4 50 0 0 2Q 2012 2Q 2013 EBIT 2Q 2012 Wolumen Cena energii (z Cena PM Brak PM Pozostałe Koszty s
Slide 25: Heat
Heat PLN m Financial data PLN m EBIT bridge 250 235.8 221.8 20 14.6 200 15 10 150 5 0.7 1.0 4.5 100 0 3.2 -5 3.0 50 37.8 4.0 27.0 -10 14.6 1.0 3.6 0 -15 2Q 2012 2Q 2013 -20 -32.9 -25 Przychody ze sprzedaży Sales revenue EBITDA EBIT EBIT 2Q 2012 Odpis Certificates‟ aktualizujący Wolumen Electricity C
Slide 26: Customer Service
Customer Service PLN m Financial data PLN m EBIT bridge 140 131.1 60 34,6 -37,9 120 100 50 84.5 80 40 60 30 40 21.6 17.9 18,3 13.0 0,2 17,9 20 9.5 20 0 9,5 -6,8 10 2Q 2012 2Q 2013 0 Przychody ze sprzedaży Sales revenue EBITDA EBIT EBIT 2Q 2012 Przychody Revenue ofCUW Shared Przychody CUW Revenue of
Slide 27: Electricity market price trends
Electricity market price trends Electricity Platforms: 2012 2013 (until July 30 2013) 2013/2012 TGE, TFS, GFI, Price Volume Price Volume Price Volume GPW-POEE PLN/MWh GWh PLN/MWh GWh % % Forward BASE (Y+Q+M) 200.08 139 358 186.47 134 003 - 6.8% - 3.8% Forward PEAK (Y+Q+M) 225.56 17 161 205.38 14 165
Slide 28: BASE contracting for 2013
BASE contracting for 2013 Prices of BASE contracts concluded for 2013 220 210 200 Price [PLN/MWh] 190 180 170 160 150 140 2012-01-01 2012-03-05 2012-05-08 2012-07-11 2012-09-13 2012-11-16 2013-01-19 2013-03-24 2013-05-27 2013-07-30 Y-13 Q1-13 Q2-13 Q3-13 Q4-13 Average price of transactions concluded
Slide 29: PEAK contracting for 2013
PEAK contracting for 2013 Prices of PEAK contracts concluded for 2013 255 245 235 225 Price [PLN/MWh] 215 205 195 185 175 165 2012-01-01 2012-02-28 2012-04-26 2012-06-23 2012-08-20 2012-10-17 2012-12-14 2013-02-10 2013-04-09 2013-06-06 2013-08-03 Y-13 Q1-13 Q2-13 Q3-13 Q4-13 Average price of transac
Slide 30: BASE contracting for 2014
BASE contracting for 2014 Prices of BASE contracts concluded for 2014 180 175 170 Price [PLN/MWh] 165 160 155 150 145 140 2013-01-01 2013-01-31 2013-03-02 2013-04-01 2013-05-01 2013-05-31 2013-06-30 2013-07-30 Y-14 Q1-14 Q2-14 Q3-14 Q4-14 Average price of transactions concluded [PLN/MWh]: Volume [GW
Slide 31: PEAK contracting for 2014
PEAK contracting for 2014 Prices of PEAK contracts concluded for 2014 215 210 205 200 Price [PLN/MWh] 195 190 185 180 175 170 165 2013-01-06 2013-02-05 2013-03-07 2013-04-06 2013-05-06 2013-06-05 2013-07-05 2013-08-04 Y-14 Q1-14 Q2-14 Q3-14 Q4-14 Average price of transactions concluded [PLN/MWh]: Vo
Slide 32: BASE contracting for 2015
BASE contracting for 2015 Prices of BASE contracts concluded for 2015 205 195 185 Price [PLN/MWh] 175 165 155 145 2012-10-03 2012-12-02 2013-01-31 2013-04-01 2013-05-31 2013-07-30 Y-15 Q1-15 Q2-15 Q3-15 Q4-15 Average price of transactions concluded [PLN/MWh]: Volume [GWh] Annual 162.52 10 670 Quarte
TAURON Polska Energia — H1 2013 Earnings Presentation on 6ix