ORLEN Spolka Akcyjna · GPW:PKN
ORLEN Spolka Akcyjna — PKN Orlen — FY2005 Earnings Presentation
21 slides from ORLEN Spolka Akcyjna's earnings presentation, Apr 28, 2006
Slide 1: PKN ORLEN audited consolidated financial results: FY 2005 (IFRS)
PSG\JAN05\EP\K2_OVERVIEW(01).PPT PKN ORLEN audited consolidated financial results: FY 2005 (IFRS) Paweł Szymański, CFO April 28th 2006 1
Slide 2: Audited consolidated financial results 2005
Audited consolidated financial results 2005 The highest ever results of PKN ORLEN following restructuring and corporate culture changes; supported by market conditions1 The highest ever net profit of PKN ORLEN After Q4'05 in PLN m 2004 2005 unadited adited audited 22.3% ROACE (%)2 16.5% 21.8% Ex. ne
Slide 3: Dividend proposal
Dividend proposal Potential acquisition of Mažeikiu Nafta determines the decision of the Management z In case of PKN ORLEN ongoing participation in the tender offer for Mažeikiu Nafta, the Management would like to propose to account all of the net income - reduced by write-off for Labour Social Serv
Slide 4: Conclusion of the Unipetrol transaction
Conclusion of the Unipetrol transaction Calculation of negative goodwill effect in PKN ORLEN consolidated financial report FY2005 Final calculation of negative goodwill associated with Unipetrol acquisition (accounted to other operating costs) amounted in 2005 to PLN 1,89 bn 31.05.2005 Compound calc
Slide 5: Financial results 2005
Financial results 2005 Sound financial results of PKN ORLEN were achieved even after exclusion of one-off items Major one-off negative items in Q4’05 Major one-off items in 2005 consolidated consolidated results of PKN ORLEN results of PKN ORLEN In PLN m In m PLN One-off effect on P&L 21 Negative go
Slide 6: Simplified P&L account
Simplified P&L account Increase of EBIT by 9% excluding negative goodwill effect* audited after Q4'05 IFRS, PLN m 2004 Unipetrol change 28.02.2006 2005 difference difference % 7m'2005 2005/2004 1 2 3 4 5=4-2 6=5/2 7=4/1 Revenues 30 680 42 804 7 368 41 188 -1 616 -3,8% 34,3% Operating profit 2 687 5
Slide 7: EBIT of PKN ORLEN by segments
EBIT of PKN ORLEN by segments Significant improvement of operating results Unipetrol Unipetrol IFRS basis, PLN m 2004 2005 y/y 4kw'05 7months 2005 Operating profit , of which 2 686 66 176 4 947 84,2% negative goodwill 1 894 operating profit (excl.neg. goodwill) 3 053 1 Refining 2 248 53 165 2 947 31
Slide 8: Macroeconomic environment in 2005
Macroeconomic environment in 2005 Variable and volatile refining and petrochemical sector Refinery margin Exchange rates average1 5.12 $/b average in 20053 Decrease by 9% y/y 2.56 $/b average in 1q20063 Decrease by 30% y/y PLN/USD PLN/EUR 16 2005 2006 2004 PLN/USD 2006E 2 PLN/EUR 2006E2 14 2006E 5,0
Slide 9: Supporting slides
Agenda Supporting slides z Supporting slides z Segments waterfall charts q/q z Petrochemicals market – environment summary z Unipetrol z Retail market in Poland 9
Slide 10: Refining segment result waterfall
PLN m 0 100 200 300 400 500 600 700 800 900 Segment result 2004 496 Q4’04 ∆ LIFO 142 on other oper. ∆ Result activity of PKN 54 ∆Sales volumes 52 ∆ Unipetrol 53 Refining segment ∆ Inland premium 30 cutting ∆ Cost programme 14 ∆ USD/PLN exchange rate 6 ∆ORLEN Asfalt 6 ∆ Refining margin 5 Q4’05 ∆ORLEN
Slide 11: Petrochemical segment result waterfall
PLN m 0 100 200 300 400 500 Segment result 2004 278 Q4’04 ∆ Internal sales result 90 ∆Sales volumes 59 ∆ Unipetrol 40 on other oper. ∆Result activity of PKN 27 ∆ USD/PLNrateexchange 3 Cost cutting Petrochemical segment 3 ∆ programme ∆ Fair value adjustment Crude oil own ∆ consumption (6) (11) Q4’05
Slide 12: Retail segment result waterfall
PLN m -70 -50 -30 -10 10 30 50 Segment result 2004 -54 Q4’04 ∆ Retail margin 62 Retail segment ∆ Result on other oper. activity 20 cutting ∆ Cost programme 12 ∆ Non-fuels products margin 2 ∆ Unipetrol (14) Q4’05 ∆ Sales volumes (18) ∆ ORLEN Deutschland (66) Others 14 Segment result 2005 -42 12
Slide 13: Petrochemical market from January 2004 to mid April 2006
Petrochemical market from 1 January 2004 to mid April 2006 Ethylene Propylene 1000 900 900 in EUR/tone 800 in EUR/tone 800 700 700 600 600 413 500 500 370 398 427 383 322 314 304 398 389 400 353 338 349 400 290 293 338 300 300 254 232 211 211 200 200 100 100 0 0 1-Jan 1-Apr 1-Jul 1-Oct 1-Jan 1-Apr 1
Slide 14: Unipetrol Group: selected audited financial data FY2004 vs FY2005
Unipetrol Group Selected audited financial data for FY2004 vs. FY2005 Audited financial results of main subsidiaries of Unipetrol a.s. in 000 CZK 2004 IFRS* 2005 IFRS Chem opetrol a.s. Revenues 28,899,450 31,181,618 EBIT 2,743,604 3,157,240 Net result 1,952,507 2,616,366 Equity 13,033,302 14,174,200
Slide 15: Unipetrol Group: audited financial and operational results for 2005
Unipetrol Group Audited financial and operational results for 2005 Audited consolidated financial highlights of Unipetrol a.s. 2004-2005 in '000 CZK 2004 IFRS* 2005 IFRS UNIPETROL a.s. Equity 32 825 771 38 988 043 Total assets 72 143 595 76 441 640 Revenues 71 097 589** 80 946 337*** EBIT 5 846 248
Slide 16: Unipetrol Group: operational highlights 2003-2005
Unipetrol Group Selected financial data for FY2003 vs. FY2005 Operational highlights for years 2003-2005 Operating data* Q1'03 Q2'03 Q3'03 Q4'03 2003 Q1'04 Q2'04 Q3'04 Q4'04 2004 Q1'05 Q2'05 Q3'05 Q4'05 2005 Total sales (tt) , of which 110 177 720 1 135 2 142 1 024 1 195 1 204 1 269 4 692 1 118 1 32
Slide 17: Retail fuels market in Poland
Retail fuels market in Poland Retail consumption of fuels in Poland in 2005 (in thousand tonnes) Estimated dynamics 2005-2004 Petrol Diesel oil LPG Total of fuels 4 029 5 127 1 775 10 931 - 5.3% + 5.7% + 23.3% + 3.6 % Balance sheet of motor oils in Poland in 2005 Estimated share in the retail market
Slide 18: Fuel pricing
Fuel pricing International conditions of crude oil price growth Limited relationship between quotation rise and actual crude oil demand and supply Significant premium for political (international) risk Mainly political – and not economic – factors of price rise Domestic market conditions Average gro
Slide 19: Retail pricing structure for Pb95
Retail pricing structure for Pb95 in the period January – April 2006. Retail price structure 120% Costs to be covered with the gross Gross retail profit retail profit margin: margin 100% 1) Operating costs of a petrol station including - transport costs VAT - staffing costs 80% - materials and energ
Slide 20: Brent oil quotations and retail margin reduction
Starting from mid March PKN Orlen S.A. has been relieving the adverse outcomes of the growth in crude oil price by decreasing the unit fuel gross margin in Retail 3,7 Retail price 3,6 72,0 Brent oil quotations 3,5 Retail price 3,4 67,0 Brent oil quotations [USD/barrel} Net retail price [PLN per litr
Slide 21: Pb95 gasoline prices on ORLEN sites lower or equal to Premium stations
Pb95 gasoline prices on ORLEN sites in 2006 are lower or equal to prices in the competing Premium stations across Poland -1 gr 0 gr -1 gr 0 gr -2 gr -1 gr 0 gr 0 gr -1 gr -2 gr -1 gr +1 gr -2 gr -1 gr -1 gr -1 gr 21