Ze Pak Sa · GPW:ZEP

Ze Pak Sa — Zespół Elektrowni Pątnów-Adamów-Konin — Q1 2017 Earnings Presentation

24 slides from Ze Pak Sa's earnings presentation, May 15, 2017

  1. Slide 1: Zespół Elektrowni Pątnów-Adamów-Konin SA 1Q 2017 Results

    15 May 2017 Zespół Elektrowni Pątnów-Adamów-Konin SA 1Q 2017 Results

  2. Slide 2: ZE PAK Group – 1Q 2017 summary

    ZE PAK Group – 1Q 2017 summary Key financial and operational data 1Q 2017 Change y/y Electricity sale(1): 2.84 TWh -15.98% • Own production(1): 2.20 TWh -11.29% • Resale : 0.64 TWh -28.89% ZE PAK share in whole electricity production in Poland(2): 5.53 % -0.80p.p. Achieved average electricity sale p

  3. Slide 3: ZE PAK Group – 1Q 2017 Summary

    ZE PAK Group – 1Q 2017 Summary [m PLN] Revenues EBITDA Net profit 680 ⬇ 11,76% 600 97 ⬆ 1,03% ⬇ 28,57% ⬇ 25,33% 98 159 111 ⬇ 30,19% 424 175 75 391 ⬇ 7,78% 125 56 1Q 2017 1Q 2016 1Q 2017 1Q 2016 1Q 2017 1Q 2016 Lower financial results of ZE PAK SA Group in 1Q 2017 according to corresponding period of

  4. Slide 4: Selected Electricity Market Data

    SELECTED ELECTRICITY MARKET DATA 4

  5. Slide 5: Electricity prices

    Electricity prices Increase of quarterly weighted average electricity price in 1Q 2017 (Day ahead 450 IRDN prices index on TGE) by 1,1 PLN, i.e.. roughly 0.7% in compare to 1Q 2016. The range of price 350 max. volatility relatively small compared to PLN/MWh recent periods. Electricity prices higher

  6. Slide 6: CO2 emission allowances (EUA) and green certificates of electricity origin

    CO2 emission allowances (EUA) and green certificates of electricity origin Prices of CO2 emission allowances (EUA) in 9 1Q 2017 lower than in 1Q 2016 and 4Q 8 EUA prices 2016. The arithmetic average for EUA in 1Q 7 2017 was 5.15 euro - and was lower by over 5.61 5.75 8% than in 1Q 2016. The highest

  7. Slide 7: Operational Data

    OPERATIONAL DATA 7

  8. Slide 8: Net production and sale of electricity

    Net production and sale of electricity [TWh] NET PRODUCTION(1) SALE(2) 2.45 3.35 ⬇ 10.20% ⬇ 15.22% 2.20 0.57 2.84 0.90 0.67 ⬆ 17.54% 0.17 0.64 ⬇ 28.89% ⬇ 58.82% 0.07 0.74 0.42 ⬇ 43.24% 2.45 2.20 ⬇ 10.20% 1.04 ⬆ 7.22% 0.97 1Q 2017 1Q 2016 1Q 2017 1Q 2016 Pątnów I Adamów Konin Pątnów II own production

  9. Slide 9: Lignite consumption and CO2 emission

    Lignite consumption and CO2 emission [million tonns] LIGNITE CONSUMPTION(1) EMISSION OF CO2(2) ⬇ 7.93% 3.28 3.02 ⬇ 6.62% 3.02 2.82 0.66 ⬇ 39.45% 1.09 0.59 0.72 ⬆ 22.03% 2.43 2.36 ⬆ 7.76% 2.10 ⬇ 13.58% 2.19 1Q 2017 1Q 2016 1Q 2017 1Q 2016 ZE PAK Pątnów II PAK KWB Adamów PAK KWB Konin Decrease of lign

  10. Slide 10: Sale of electricity breakdown

    Sale of electricity breakdown by customers (internal ring) and by the market type (external ring) 1Q 2017 1Q 2016 Balancing Balancing market market 8.2% 7.5% Top 5 Top 5 customers customers Bilateral 34.1% Bilateral 34.8% contracts contracts 44.3% Other 46.4% 65.2% Other 65.9% Polish power Polish ex

  11. Slide 11: Electricity sales

    Electricity sales(1) Electricity sale(2) Average sale prices(3) Revenues [TWh] [PLN/MWh] [m PLN] 1Q 2017 2.84 1Q 2017 176.39 1Q 2017 600 ⬇ 11.76% ⬇ 15.22% ⬆ 1.25% 1Q 2016 3.35 1Q 2016 174.21 1Q 2016 680 (1) Sales presented in P&L (excluding investment sale). (2) Sales of electricity from own product

  12. Slide 12: Capex on fixed assets and intangible assets

    Capex on fixed assets and intangible assets (excluding CO2) CAPEX [PLN million] EXPENDITURES [PLN million] ⬌ 0% ⬇ 71.23% 73 21 13 13 1Q 2017 1Q 2016 1Q 2017 1Q 2016 • Low capex in both periods. Lack of big • High level of investment liabilities as the end of investment projects. 2015, of which the d

  13. Slide 13: Financial Data

    FINANCIAL DATA 13

  14. Slide 14: Revenues

    Revenues [PLN million] Revenues 1Q 2017 Lower total revenues from electricity sale: 424 391 1Q 2016 • lower sale volume from own production and from resale, • higher achieved sale price does not compensate for the decrease in volume. 159 Increase of revenues from construction contracts 111 as result

  15. Slide 15: EBITDA 1Q 2017

    EBITDA 1Q 2017 [PLN million] 1Q 2017 1Q 2016 (1) EBITDA lower by 50 m PLN (-28.6%) Sales revenue 600 680 (-45) lower revenues from own electricity production, higher revenues from Change % -11.76% system services and capacity reserve, lower revenues from certificates of origin, lower result on elect

  16. Slide 16: EBITDA 1Q 2017 by segments

    EBITDA 1Q 2017 by segments [PLN million] EBITDA CHANGES +3 +1 +1 - 26 175 - 27 -2 125 EBITDA INCREASE EBITDA DECREASE SALE MINING EBITDA 1Q 2016 ADJUSTMENTS EBITDA 1Q 2017 GENERATION OTHER RENOVATION 111 Main reasons of EBITDA changes in segments: EBITDA Generation: 85 (-45) lower revenues from own

  17. Slide 17: Consolidated P&L for 1Q 2017 by segments

    Consolidated P&L for 1Q 2017 by segments Consolidation m PLN Generation Mining Renovation Sale Other adjustments Total Sale revenues from external customers 428 2 25 144 2 - 600 External sale revenues % 82.95% 0.92% 31.25% 100.00% 8.33% 0.00% 100.00% Sale revenues between segments 88 216 55 - 23 (38

  18. Slide 18: Financial activities, taxation and net profit

    Financial activities, taxation and net profit [PLN million] 1Q 2017 1Q 2016 EBIT --˃ Net profit EBIT 72 114 Financial income(1) 12 4 (2) Financial costs (13) (16) Gross profit 71 103 72 Income tax 56 (taxation) (15) (28) -1 - 15 Effective tax rate 21.13% 27.18% Net profit (loss) for the period 56 75

  19. Slide 19: Employment

    Employment [full time] BY SEGMENTS TOTAL 3 000 6 494 6 081 6 168 2 000 1 000 - GENERATION MINING RENOVATION OTHER 31-03-2017 31-12-2016 31-03-2016 31-03-2017 31-12-2016 31-03-2016 Group’s employment decrease mainly due to pension rights acquisitions of employees and finishing of fixed-term contracts

  20. Slide 20: Financial indebtedness

    Financial indebtedness Net debt [m PLN] Net debt/EBITDA 31.03.2017 31.12.2016 31.03.2016 31.03.2017 1.15 31.12.2016 1.00 1265 31.03.2016 1.68 1020 904 906 (1) Cash and cash equivalents from consolidated statement of financial 625 593 position and other short-term financial assets (279) (359) (427) (

  21. Slide 21: Financial indebtedness structure

    Financial indebtedness structure (1) 400 Indebtedness to pay in following years 300 m PLN 200 100 0 2017 2018 2019 2020 Indebtedness structure Indebtedness structure Indebtedness structure by debtor by currency by interest rate 18.49% 36.98% Elektrownia 36.98% Pątnów II PLN floating rate 51.49% PAK

  22. Slide 22: Consolidated cash flow

    Consolidated cash flow [PLN million] 1Q 2017 1Q 2016 (1) Lower amortisation in 1Q 2017 concerns Gross profit (loss) 71 103 mining segment due to only one open pit depreciation and amortization(1) 49 58 exploit in 2017 and finish of overburden asset amortisation as at the end of 1Q 2016. profit/loss

  23. Slide 23: Questions & Answers

    Questions & Answers 23

  24. Slide 24: Disclaimer

    Disclaimer This presentation serves for information purposes only and should not be treated as investment-related advice. This presentation has been prepared by Zespół Elektrowni Pątnów – Adamów – Konin SA (“the Company”). Neither the Company nor any of its subsidiaries shall be held accountable for

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