Pge Polska Grupa Energetyczna S.a. · GPW:PGE
Pge Polska Grupa Energetyczna — H1 2010 Earnings Presentation
26 slides from Pge Polska Grupa Energetyczna's earnings presentation, Sep 1, 2010
Slide 1: H1 2010 Results
H1 2010 Results Consolidated, in accordance with IFRS Warsaw, September 1, 2010
Slide 2: PGE's H1 2010 Results
PGE’s H1 2010 Results Legal and formal consolidation completed – mergers registered on August 31, 2010 Consolidation New shares to be listed in 2nd half of October Programme Works on cost saving program and merger with PGE Electra in progress Significant progress in non-core assets disposal
Slide 3: Consolidation Programme
3] Consolidation Programme
Slide 4: Consolidation Programme – legal and formal consolidation completed
Consolidation Programme – legal and formal consolidation completed June 21-22, 2010 July 16, 2010 August 3, 2010 August 13, 2010 August 16, 2010 August 27, 2010 Resolutions on Information Agreement with Agreement with Conversion of Resolution on mergers of Retail Memoranda Trade Unions of Trade Unio
Slide 5: Consolidation Programme – next steps
Consolidation Programme – next steps Current Structure Target Structure Non-core PGE Polska Grupa Energetyczna S.A. Shared Non-core PGE – the Parent Shared asset Services asset Services management Corporate Center Center management Corporate Center and Wholesale Company Center Renewables Nuclear Con
Slide 6: PGE S.A. – the Corporate Center
PGE S.A. – the Corporate Center As a Corporate Center PGE is responsible for the Capital Group management and integration of business lines ► Management processes Main tasks of the Corporate Center Strategic Management Business Supervision to increase Shareholders’ value Planning & Controlling t
Slide 7: Consolidation – business lines responsibilities
Consolidation – business lines responsibilities Tasks of each business lines in accordance with the value chain management principles: Generation Wholesale Distribution Retail to generate electricity & to maximize profit of PGE to ensure quality of to maximize revenues by heat Capital Group
Slide 8: Non-core Assets Disposal
Non-core Assets Disposal Polkomtel Exatel Key assumptions concerning shares disposal programme Market and shares valuation analyses completed agreed between polish shareholders Works with the advisors on the transaction structure Vendor Due Diligence planned to be finished in the Q3 2010 D
Slide 9: Financial results
9] Financial results
Slide 10: Financial results remain strong
Financial results remain strong Key drivers in H1 2010 Electricity generation volumes flat in H1 y-o-y and reached 26.21TWh in Revenues (in PLN bn) H1 2010 compared to 26.35TWh in H1 2009. Sale of heat increased by 6.7% y-o-y - 4.3% 10,57 + 2.0% Ex-LTC revenues increased by 2.0% mainly due to: 1
Slide 11: EBITDA Ex-LTC Composition and Development
EBITDA Ex-LTC Composition and Development H1 2010 in PLNm 102 3 424 746 140 2 162 164 110 Conventional Renewables Wholesale Distribution Retail Sales Others Total Ex-LTC (incl. adj.) Ex-LTC y-o-y + 48.5 + 43.9 - 105.7 + 127.3 - 69.5 - 8.7 change + 2.3% + 36.5% - 49.0% + 20.6% - 33.1% - 7.9% Higher r
Slide 12: Impact of the Long Term Power Purchase Agreements (LTC) compensations
Impact of the Long Term Power Purchase Agreements (LTC) compensations LTC cash inflows and revenues in PLN m 600 531,2 Revenues Cash 482,3 500 396,5 394,6 416,3 400 358,0 358,0 335,8 358,0 348,3 353,5 348,3 348,3 297,8 300 200 154,7 104,4 100 65,6 0,0 0 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009 3Q 200
Slide 13: No Net Debt – company capable to invest heavily in organic or external growth
No Net Debt – company capable to invest heavily in organic or external growth in PLNm 5 028 3 208 End of 2009 End of H1 2010 -2 683 -3 957 Gross Debt Net Debt Financial Strength Confirmed by Rating Fitch on potential Energa acquisition Agencies (June 24, 2010) Moody’s „Fitch believes that the potent
Slide 14: Investment Programme
14] Investment Programme
Slide 15: Capital Expenditures – details for H1 2010
Capital Expenditures – details for H1 2010 Segments H1 2010 Conventional– PLN 1,359.6m Total CAPEX expenditures amounted in construction of 858MW unit in Belchatow – PLN 460.9m H1 2010 to ca. PLN 1,858m modernization of units 3-12 in Belchatow – PLN 190.7m preparatory work on Szczercow Field –
Slide 16: Investment Programme – update on current status in Conventional Generation
Investment Programme – update on current status in Conventional Generation Commissioning of ca. 4.5 – 4.7GW by the end of 2016 Bełchatów Power Plant ZEDO 858 MW lignite unit CCGT: 2x432MW (condensation) + 244MW (cogeneration) First synchronization with NES Commissioning planned for 2015/2016 C
Slide 17: Potential ENERGA Acquisition
Potential ENERGA Acquisition Current status of the Deal August 16, 2010 – PGE submitted the Final Non-Binding Offer to purchase 82.9% shares of Energa S.A. August 20, 2010 – PGE shortlisted for negotiations Next steps in the process: August 20, 2010 - September 15, 2010 – deep due diligence and ne
Slide 18: Thank you
Thank you Investor Relations Contacts: ir@pgesa.pl Head of IR IR Officer IR Officer Przemek Wasilewski Anna Ryba Krzysztof Dragan Tel: (+48 22) 340 19 46 Tel: (+48 22) 340 19 41 Tel: (+48 22) 340 15 13 Fax: (+48 22) 629 47 25 Fax: (+48 22) 629 47 25 Fax: (+48 22) 629 47 25 Mob: +48 723 189 235 Mob:
Slide 19: Back-up slides
19] Back-up slides
Slide 20: Strong Profitability and Growth in H1 2010
Strong Profitability and Growth in H1 2010 Period Ended Year Ended 30 June(IFRS) 31 December (IFRS) 2009 2010 2009 2010 PLNm PLNm EURm EURm reviewed reviewed Sales 10,569 10,111 2,339 2,525 Sales Ex-LTC 9,750 9,941 2,158 2,483 EBITDA 4,207 3,594 931 898 EBITDA margin 39.8% 35.5% 39.8% 35.5% EBITDA E
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet Period Year Ended Ended 31 (IFRS) December (IFRS) Dec 31, 2009 June 30, 2010 Dec 31, 2009 June 30, 2010 PLNm PLNm EURm EURm audited reviewed Shareholder equity 31,168 31,380 7,587 7,569 Minority interest 7,681 7,344 1,870 1,772 Non-current assets 41,964 42,400 10,215 10,22
Slide 22: Electricity generation by source [TWh]
Electricity generation by source [TWh] H1 Q12010 2010 H1Q1 2009 2009 Lignite-fired power plants 17.90 17.90 Coal-fired power plants 6.12 6.00 Coal-fired CHPs 0.72 0.79 Gas-fired CHPs 0.86 1.14 Pump-storage 0.25 0.20 Water 0.33 0.29 Wind 0.03 0.03 TOTAL 26.21 26.35 Coal-fired generation figure includ
Slide 23: H1 2010 Key business flows
H1 2010 Key business flows ILLUSTRATIVE Business Customers Free market Retail 10.32 TWh ≈69% 10.13TWh (H1 2009) 15.01 TWh ≈57% Generation 14.70TWh (H1 2009) 26.21 TWh Households 26.35TWh (H1 2009) 4.69 TWh ≈31% 4.57TWh (H1 2009) Regulated market Wholesale ≈39% 10.15 TWh 10.73TWh (H1 2009) Source: PG
Slide 24: Energa S.A. – key publicly available information
Energa S.A. – key publicly available information Energa key data (2009) according to public sources Area of operations and key assets of PGE and Energa Distribution ~20 TWh Żarnowiec Generation 4.2 TWh EC Elbląg Sales 16.5 TWh El Dolna Odra Balance sales – generation –12.3 TWh ZEC Bydgoszcz Włocławe
Slide 25: Consolidation – Increased Financial Power and Improved Dividend Payment Capability
ILLUSTRATIVE ONLY! Consolidation – Increased Financial Power and Improved Dividend Payment Capability BEFORE TODAY Not less than 78.7% Immediate effects of mergers LEVEL I 85% Increased financial power – higher cash flows of the Parent Company (PGE) Increased Parent liquidity Improved Dividend Payme
Slide 26: Calendar of events
Calendar of events Corporate events Event Event Date Date Dividend date September 22, 2010 Dividend payment date October 12, 2010 Publication of consolidated quarterly report for 3Q2010 November 15, 2010 Meet us at the conferences Event Event Date Date Place Place Hosted by Hosted by 7th Annual Emer
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