Ze Pak Sa · GPW:ZEP

Ze Pak Sa — Zespół Elektrowni Pątnów-Adamów-Konin — Q2 2019 Earnings Presentation

28 slides from Ze Pak Sa's earnings presentation, Sep 19, 2019

  1. Slide 1: Zespół Elektrowni Pątnów-Adamów-Konin SA 2Q 2019 Results

    19 September 2019 Zespół Elektrowni Pątnów-Adamów-Konin SA 2Q 2019 Results

  2. Slide 2: ZE PAK Group – 6M 2019 summary

    ZE PAK Group – 6M 2019 summary Key operational and financial data 6M 2019 Change y/y Sale of electricity: 4,64 TWh +8,66% • Electricity from own production: 2,52 TWh -13,10% • Electricity from resale: 2,12 TWh +54,57% Achieved average electricity sale price(1) 269,15 PLN/MWh +37,41% Sale revenues: 1

  3. Slide 3: ZE PAK Group – 2Q 2019 summary

    ZE PAK Group – 2Q 2019 summary Key operational and financial data 2Q 2019 Change y/y Sale of electricity: 2,33 TWh 6,42% • Electricity from own production: 1,36 TWh -9,93% • Electricity from resale: 0,97 TWh +44,78% Achieved average electricity sale price 268,43 PLN/MWh +32,99% Sale revenues: 711 m

  4. Slide 4: ZE PAK Group – 6M 2019 summary

    ZE PAK Group – 6M 2019 summary [m PLN] Revenues EBITDA Net profit/loss 1406 ⬆43,03% 983 173 ⬆ 15,33% 163 ⬆129,58% 71 521 150 ⬆ 98,10% 97 263 ⬆ 24,91% 95 37 712 66 570 -24 6M 2019 6M 2018 6M 2019 6M 2018 -52 Other Electricity from resale Depreciation EBIT Electricity from own production 6M 2019 6M 20

  5. Slide 5: Selected electricity market data

    SELECTED ELECTRICITY MARKET DATA 5

  6. Slide 6: Electricity prices

    Electricity prices 450,00 The first half of 2019 was characterized by a decrease in the weighted average energy price compared to the preceding two quarters. The most important factors that had an impact on 350,00 max electricity prices in the first half of 2019 were: lower domestic PLN/MWh electric

  7. Slide 7: EUA and green certificates

    EUA and green certificates In the first half of 2019, the CO2 emission allowance 31,00 EUA market was characterized by very high price volatility. 25,46 The difference between the minimum and maximum 27,00 22,10 quotations was 8.75 euros, i.e. about 35% compared to the price at the end of 2018. The

  8. Slide 8: Operational data

    OPERATIONAL DATA 8

  9. Slide 9: Half-year net production and sale of electricity

    Half-year net production and sale of electricity [TWh] NET PRODUCTION SALE 2,52 ⬇13,10% 2,90 4,64 ⬆8,67% 4,27 ⬇ 5,88 0,17 0,16 1,12 TWh TWh 0,95 ⬇15,18% 2,12 ⬆54,74% 1,37 The increase in sales volume ⬇ 12,42% 1,61 ⬇13,10% 2,90 was the result of higher sales of 1,41 2,52 electricity from trading. How

  10. Slide 10: Quarterly net production and sale of electricity

    Quarterly net production and sale of electricity [TWh] NET PRODUCTION 1,16 1,36 ⬇9,93% 1,51 0,07 ⬆28,57% 0,09 0,63 0,07 0,50 ⬇ 20,63% TWh 0,45 0,77 0,81 ⬇4,94% 0,64 Q1 19 2Q 2019 2Q 2018 Pątnów I Pątnów II Konin Pątnów I Pątnów II Konin Adamów SALE 2,31 ⬆ 6,88% 2,18 2,33 0,97 ⬆ 44,78% 0,67 1,15 TWh

  11. Slide 11: Lignite consumption and CO2 emission

    Lignite consumption and CO2 emission [mln ton] LIGNITE CONSUMPTION CO2 EMISSION 3,19 ⬇13,55% 3,69 2,97 ⬇14,66% 3,48 0,30 Data on coal consumption and CO2 ⬆ 50,00% 1,19 0,45 emissions in both the first half of 2019 ⬇ 12,61% million tons million tons 1,04 and Q2 2019 alone show a decrease in coal cons

  12. Slide 12: Average prices of electricity and CO2 emission allowances purchase

    Average prices of electricity and CO2 emission allowances purchase Electricity prices1) Prices of CO2 emission allowances purchase (EUA) 2) 1) Average price, calculated as electricity sales revenues (own production, from resale and system service) divided PLN/MWh by sales volume.. PLN/EUA 269,15 ⬆ 3

  13. Slide 13: Capex on fixed assets and intangible assets

    Capex on fixed assets and intangible assets (excluding CO2) CAPEX [m PLN] EXPENDITURES [m PLN] ⬇ 64,00% ⬇ 16,67% ⬇ 61,11% ⬇ 53,33% 54 50 21 18 15 10 12 7 6M 2019 6M 2018 2Q 2019 2Q 2018 6M 2019 6M 2018 2Q 2019 2Q 2018 In the area of investment activity, the Group focuses on maintaining its assets an

  14. Slide 14: Financial data

    FINANCIAL DATA 14

  15. Slide 15: Revenues

    Revenues [m PLN] Revenues Higher total revenues from the sale of electricity: 711 6M 2019 • lower volume of energy sales from own 6M 2018 production, 570 • higher sales volume from turnover, 521 • higher obtained electricity sale price. Lower compensation for termination of PPAs. In both periods, th

  16. Slide 16: Costs by type

    Costs by type [m PLN] 489 6M 2019 Reasons of changes in key positions: 6M 2018 Higher material costs result from higher biomass costs. 253 262 Higher CO2 emission costs as a result of the higher EUA 215 225 unit purchase price. 152 139 166 Higher value of goods and materials sold - caused by the 97

  17. Slide 17: EBITDA 6M 2019

    EBITDA 6M 2019 [m PLN] 6M 2019 6M 2018 (1) EBITDA higher by PLN 92 m (+128,17%), including: Sale revenues 1 406 983 (+191) higher revenues from own energy, higher revenues from system services and power Change % 43,03% reserves, lower revenues from PPAs, higher revenues from heat, higher revenues fr

  18. Slide 18: EBITDA 6M 2019 by segments

    EBITDA 6M 2019 by segments [m PLN] EBITDA changes + 100 +4 +3 +3 - 17 -1 163 71 MINING OTHER RENOVATION EBITDA 6M 2018 GENERATION SALE EBITDA 6M 2019 ADJUSTMENTS EBITDA INCREASE EBITDA DECREASE Main reasons of EBITDA changes in segments: EBITDA Generation: Mining: 193 6M 2019 6M 2018 • higher revenu

  19. Slide 19: Consolidated P&L for 6M 2019 by segments

    Consolidated P&L for 6M 2019 by segments Consolidation m PLN Generation Mining Renovation Sale Other adjustment Total Sale revenues from external customers 1 031 5 37 332 1 - 1 406 External sale revenues % 89,89% 1,98% 52,11% 100,00% 0,87% 0,00% 100,00% Sale revenues between segments 116 248 34 - 11

  20. Slide 20: EBITDA 2Q 2019

    EBITDA 2Q 2019 [m PLN] 2Q 2019 2Q 2018 (1) EBITDA higher by PLN 67 m (+309,43%), including: Sale revenues 711 517 (+91) higher revenues from own energy, higher revenues from system services and capacity Change % 37,52% reserves, lower revenues from PPAs, higher revenues from heat, higher revenues fr

  21. Slide 21: EBITDA 2Q 2019 by segments

    EBITDA 2Q 2019 by segments [m PLN] EBITDA changes + 15 +2 +2 + 51 -1 -2 89 22 OTHER MINING EBITDA 2Q 2018 RENOVATION EBITDA 2Q 2019 SALE GENERATION ADJUSTMENTS EBITDA INCREASE EBITDA DECREASE Main reasons of EBITDA changes in segments: 70 EBITDA 2Q 2019 2Q 2018 Generation: Mining: • higher revenues

  22. Slide 22: Consolidated P&L for 2Q 2019 by segments

    Consolidated P&L for 2Q 2019 by segments Consolidation m PLN Generation Mining Renovation Sale Other adjustment Total Sale revenues from external customers 539 2 24 145 1 - 711 External sale revenues % 90,28% 1,36% 57,14% 100,00% 1,75% 0,00% 100,00% Sale revenues between segments 58 145 18 - 57 (278

  23. Slide 23: Financial activities, taxation and net profit

    Financial activities, taxation and net profit [m PLN] 6M 2019 6M 2018 2Q 2019 2Q 2018 (1) In 6M 2019 and 2Q 2019 alone, clearly lower financial EBIT 66 (25) 38 (26) costs due to low debt and related interest costs Financial income 8 5 - 3 Financial costs (13) (25) (5) (14) Gross profit 61 (45) 33 (3

  24. Slide 24: Employment

    Employment [full time] BY SEGMENTS TOTAL 3 000 5 273 5 069 4 830 2 000 1 000 - GENERATION MINING RENOVATION OTHER 30-06-2019 31-12-2018 30-06-2018 30-06-2019 31-12-2018 30-06-2018 24

  25. Slide 25: Financial indebtedness

    Financial indebtedness Net debt [m PLN] Net debt / EBITDA 30.06.2019 31.12.2018 30.06.2018 30.06.2019 0,63 31.12.2018 0,92 555 30.06.2018 0,91 424 303 (1) Cash and cash equivalents from 245 consolidated statement of financial 114 position and other short-term 83 financial assets (130) (252) (341) (1

  26. Slide 26: Financial indebtedness structure

    Financial indebtedness structure (1) Indebtedness to pay in following years m PLN 128 80 31 0 2019 2020 2021 2022 Indebtedness structure by Indebtedness structure by Indebtedness structure debtor currency by rate 43,11% ZE PAK Variable stopa PLN zmienna rate PAK KWB 56,89% Konin 100,00% 100,00% 26 (

  27. Slide 27: Consolidated cash flow

    Consolidated cash flow [m PLN] 6M 2019 6M 2018 2Q 2019 2Q 2018 (1) Changes in working capital to (+) Gross profit (loss) 61 (45) 33 (37) mainly due to a decrease in the level Depreciation and amortisation 96 95 50 47 of CO2 emission reserves due to the Profit/loss on investing and financial activiti

  28. Slide 28: Disclaimer

    Disclaimer This presentation ("Presentation") is prepared for information purposes only and should not be treated as investment advice. This presentation has been prepared by Zespół Elektrowni Pątnów-Adamów-Konin S.A. (“the Company”). Presentation Recipients are solely responsible for their own anal

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