Ze Pak Sa · GPW:ZEP

Ze Pak Sa — Zespół Elektrowni Pątnów-Adamów-Konin — FY2014 Earnings Presentation

29 slides from Ze Pak Sa's earnings presentation, Mar 20, 2015

  1. Slide 1: 2014 full year results

    20 March 2015 Zespół Elektrowni „Pątnów-Adamów-Konin” S.A. 2014 full year results

  2. Slide 2: 2014 summary

    2014 summary • 4,14% [by 0,43 TWh] lower sale of electricity from own production. • 33,50% [by 0,86 TWh] higher resale of electricity. • 8,13% [by 14,84 PLN/MWh] lower achieved average electricity sale price. • 3,03% [by 83,7 m PLN] lower revenues. • 29,11% [by 208 m PLN] lower EBITDA. • 66,10% [by

  3. Slide 3: Selected energy market data

    SELECTED ENERGY MARKET DATA 3

  4. Slide 4: EUA and green certificates of origin

    EUA and „green” certificates of origin 8 7 6 5 EUR 4 2013 3 2014 2 1 EUA prices 0 2-Dec 2-May 2-Jan 2-Apr 2-Aug 2-Mar 2-Jun 2-Jul 2-Oct 2-Nov 2-Feb 2-Sep 300 250 200 PLN 150 2013 100 2014 50 Green certificates prices 0 2-Jan 2-Mar 2-Apr 2-May 2-Aug 2-Dec 2-Jun 2-Jul 2-Oct 2-Nov 2-Feb 2-Sep 4

  5. Slide 5: Daily demand for electricity and IRDN prices

    Daily demand for electricity and IRDN prices 550 000 Daily demand 500 000 450 000 MWh 400 000 2013 2014 350 000 300 000 1-Feb 1-Sep 1-Nov 1-Aug 1-Mar 1-Apr 1-May 1-Jul 1-Oct 1-Jun 1-Dec 1-Jan 450 IRDN prices 400 350 zł/MWh 300 2013 250 2014 200 150 100 1-Feb 1-Sep 1-Nov 1-Apr 1-Aug 1-Mar 1-May 1-Oct

  6. Slide 6: Base load prices for 2015 (BASE_Y-15)

    „Base load” prices for 2015 (BASE_Y-15) Base load prices (BASE_Y-15) since 01.01.2014 to 31.12.2014 180 175 170 zł/MWh 165 160 155 150 1-Sep 1-Feb 1-Nov 1-Apr 1-Aug 1-Mar 1-May 1-Oct 1-Jul 1-Dec 1-Jun 1-Jan 6

  7. Slide 7: Operational data

    OPERATIONAL DATA 7

  8. Slide 8: Net production and sale of electricity [TWh]

    Net production and sale (own production and resale) of electricity [TWh] NET PRODUCTION SALE 13,51 13,09 10,09 10,53 3,42 2,56 2,37 2,46 0,61 0,53 3,10 3,03 10,09 10,53 4,01 4,52 12M 2014 12M 2013 12M 2014 12M 2013 Pątnów II Konin Adamów Pątnów I Total Own production Resale Total 3,35 3,46 2,80 0,65

  9. Slide 9: Lignite consumption and CO2 emissions

    Lignite consumption and CO2 emissions [m tons] LIGNITE CONSUMPTION EMISSIONS OF CO2 13,76 14,40 13,13 12,57 4,41 4,27 2,53 2,49 9,35 10,12 10,09 10,60 12M 2014 12M 2013 12M 2014 12M 2013 KWBA KWBK Total Pątnów II ZE PAK Total 3,89 3,52 3,41 1,19 2,97 0,69 1,08 0,42 2,33 2,70 2,55 2,83 4Q 2014 4Q 201

  10. Slide 10: Financial data

    FINANCIAL DATA 10

  11. Slide 11: Consolidated P&L (1/2)

    Consolidated P&L (1/2) [m PLN] 12M 2014 12M 2013 4Q 2014 4Q 2013 Sales revenue 2 680 2 764 709 747 Change % -3,04% -5,09% Cost of goods sold -2 452 -2 254 -704 -682 Gross profit 228 510 5 65 Margin % 8,51% 18,45% 0,71% 8,70% Other operating income 88 26 60 15 Selling and distribution expenses -4 -3

  12. Slide 12: EBITDA Changes

    EBITDA Changes [m PLN] + 77 716 + 151 - 26 -0 507 - 200 - 12 - 56 - 142 EBITDA Volume sold Electricity Green LTC Other CO2 emission Administrative Other EBITDA 12M 2013 price certificates compensation income (1) costs expenses expenses (2) 12M 2014 + 103 - 17 136 + 46 117 +7 - 20 - 97 - 27 - 14 EBIT

  13. Slide 13: Main factors affecting 2014 EBITDA

    Main factors affecting 2014 EBITDA 0,42 TWh higher sale of electricity. 45,7 m PLN reversal of the reserve for electricity equivalent for pensioners. 28,4 m PLN decrease in jubilee grants reserve in ZE PAK, PAK Serwis and EL PAK. 14,84 PLN/MWh lower achieved average electricity sale price. 19,1 m PL

  14. Slide 14: Consolidated P&L (2/2)

    Consolidated P&L (2/2) [m PLN] 12M 2014 12M 2013 4Q 2014 4Q 2013 EBIT 147 359 28 46 Finance income 21 19 10 1 Finance costs -71 -78 -30 -1 Profit before tax 98 300 8 46 Income tax -20 -68 -2 -20 (taxation) Effective tax rate % 20,41% 22,67% 25,00% 43,48% Net profit for the period 78 232 6 25 Margin

  15. Slide 15: Consolidated P&L for 12M 2014 by segments

    Consolidated P&L for 12M 2014 by segments Consolidation m PLN Generation Mining Renovation Sales Other adjustments Total Sales revenue from 1 729,7 8,5 165,9 768,0 8,1 - 2 680,1 external customers External sales revenue % 80,1% 1,0% 40,9% 100,0% 10,5% 100,0% Sales revenue between 431,0 870,2 240,1 -

  16. Slide 16: EBITDA by segments operations (1/2)

    EBITDA by segments operations (1/2) [m PLN] GROUP 715,8 GENERATION MINING 221,5 460,2 507,4 378,2 81,7 357,3 272,6 70,3 360,0 267,1 139,8 88,0 358,5 -17,7 187,6 12M 2014 12M 2013 147,4 111,1 12M 2014 12M 2013 12M 2014 12M 2013 Depreciation EBIT EBITDA Depreciation EBIT EBITDA Depreciation EBIT EBITD

  17. Slide 17: Consolidated P&L for 4Q 2014 by segments

    Consolidated P&L for 4Q 2014 by segments Consolidation m PLN Generation Mining Renovation Sales Other adjustments Total Sales revenue from 453,2 2,7 41,5 208,8 2,5 - 708,7 external customers External sales revenue % 80,4% 1,3% 32,2% 100,0% 9,6% 100,0% Sales revenue between 110,8 201,6 87,4 - 23,3 -4

  18. Slide 18: EBITDA by segments (2/2)

    EBITDA by segments (2/2) [m PLN] GROUP 135,6 131,6 GENERATION MINING 87,5 117,5 21,8 62,9 -48,0 37,5 65,7 90,1 24,5 89,4 68,7 67,9 4Q 2014 4Q 2013 -72,5 45,5 4Q 2014 -30,5 4Q 2013 28,1 4Q 2014 4Q 2013 Depreciation EBIT EBITDA Depreciation EBIT EBITDA Depreciation EBIT EBITDA RENOVATION ELECTRICITY S

  19. Slide 19: Revenue

    Revenue [m PLN] 1 902 12M 2014 1 690 12M 2013 576 487 99 155 148 63 56 58 58 57 46 48 Sale of electricity Resale of Certificates of LTC Heat sale Construction Other from own electricity from origin compensation services production the market 499 399 4Q 2014 4Q 2013 178 125 51 44 18 34 30 20 14 13 17

  20. Slide 20: Sale breakdown by customers and market type

    Sale breakdown by customers and market type by customers (internal ring) and by the market type (external ring) 2014 2013 Balancing Balancing market market 4% 7% Top 5 Top 5 Bilateral customers customers 50% contracts 43% 45% Bilateral Other Other contracts 57% 50% 54% Polish power Polish exchange p

  21. Slide 21: Electricity sales

    Electricity sales Electricity sale(1) Average sale price(2) Revenues [TWh] [PLN/MWh] [m PLN] +3,2% -8,1% -5,2% 12M 2014 12M 2014 12M 2014 13,51 167,70 2 265 12M 2013 13,09 12M 2013 182,54 12M 2013 2 389 -3,1% -4,4% -7,4% 4Q 2014 4Q 2014 4Q 2014 3,35 172,27 577 4Q 2013 3,46 4Q 2013 180,20 4Q 2013 623

  22. Slide 22: Cost by type

    Cost by type [m PLN] 597 589 12M 2014 553 557 12M 2013 448 456 361 358 231 217 179 177 151 123 56 31 Materials D&A Social security Cost of goods, External Taxes and fees CO2 emission Other and other raw materials services (excluding costs allowances for resale and excise duty) energy for resale 4Q 2

  23. Slide 23: Employment

    Employment [staff time] BY SEGMENTS TOTAL 5 000 8 295 7 760 4 000 7 254 3 000 2 000 1 000 - GENERATION MINING RENOVATION OTHER 2014 2013 2014 2013 2012 Changes in employment structure by segments are caused by restructure operations dedicated especially to mining segment. Due to optimise the structu

  24. Slide 24: Consolidated statement of financial position

    Consolidated statement of financial position [m PLN] 31.12.2014 31.12.2013 Non current 3820 Equity Non current 3783 Equity assets assets 5686 5339 Current Non current Current Non current assets (1) liabilities assets (1) liabilities Current liabilities Current liabilities Cash and cash 1842 Cash and

  25. Slide 25: Net debt

    Net debt Net debt [m PLN] Net debt / EBITDA 31.12.2014 31.12.2013 31.12.2014 1,57 31.12.2013 0,80 1 248 1 099 (1) Cash and cash equivalents from 797 Consolidated statement of financial position and other short- 571 term financial assets -451 -527 Cash and cash equivalents (1) interest bearing loans,

  26. Slide 26: Consolidated Cash Flow

    Consolidated Cash Flow [m PLN] 12M 2014 12M 2013 4Q 2014 4Q 2013 Profit/loss before taxation 98,0 299,8 8,1 45,5 Depreciation and amortization 352,9 355,9 83,4 90,1 Profit/loss on investing and financial activities 29,8 60,0 6,7 9,3 Changes in working capital 171,2 131,6 66,8 176,4 Income tax -9,9 -

  27. Slide 27: CAPEX (non-current assets and intangible assets)

    CAPEX (non-current assets and intangible assets) (excluding CO2) INVESTMENT [m PLN] EXPENDITURE [m PLN] 696 617 286 311 176 143 172 141 2014 2013 4Q 2014 4Q 2013 2014 2013 4Q 2014 4Q 2013 In 2014 investment higher by 410 m PLN. In 2014 expenditure higher by 306 m PLN. 27

  28. Slide 28: Questions and Answers

    Questions and Answers 28

  29. Slide 29: 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 S.A. (“the Company”). Neither the Company nor any of its subsidiaries shall be held accountable for

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