TAURON Group’s results presentationQ1 2013
9 May 2013
2
This presentation serves for information purposes only and should not be treated as investment-related advice.This presentation has been prepared by TAURON Polska Energia S.A. (“the Company”). Neither the Company nor any of its subsidiaries shall be held accountable for any damage resulting from the use of this presentation or a part thereof, or its contents or in any other manner in connection with this presentation.
The recipients of this presentation shall bear exclusive responsibility for their own analyses and market assessment as well as evaluation of the Company’s market position and its potential results in the future based on information contained in herein.
To the extent this presentation contains forward-looking statements related to the future, in particular such terms as ”designed”, ”planned”, ”anticipated”, or other similar expressions (including their negation), they shall be connected with the known and unknown risks, uncertainty and other factors which might result in actual results, financial situation, actions and achievements being materially different from any future results, actions or achievements expressed in such forward-looking statements.
Neither the Company nor any of its subsidiaries shall be obliged to provide the recipients of this presentation with any additional information or to update this presentation.
Disclaimer
3
15 January TAURON Group’s Efficiency Improvement Program for 2013-2015 launched
24 January Offer of consortium: RAFAKO and MOSTOSTAL WARSZAWA selected for construction of 910 MW coal-fired unit at Jaworzno III power plant
1 March 3-year long contract for hard coal supply signed with Kompania Węglowa. Estimated value of the contract from 2013 to 2015 is approx. PLN 2.4bn
15 March Letter of Intent signed with Polska Telefonia Cyfrowa (T-Mobile) for strategic cooperation. The goal of the cooperation is to introduce new solutions (in terms of both, products and technologies) for telecommunication and energy markets
25 March Polish Appeals’ Chamber dismissed appeals against decision of TAURON Wytwarzanie S.A. concerning selection of contractor for construction of the unit at Jaworzno III power plant
11 April Management Board issued recommendation on dividend payout in the amount of PLN 262 882 409.10 from net profit for the financial year 2012 attributable to the Company’s shareholders (PLN 0.15 per share). On 17 April the Supervisory Board approved of the Management Board’s recommendation
18 April Ordinary General Meeting convened for 16 May 2013
TAURON Polska Energia – Q1 2013 and recent events
4 April President of Energy Regulatory Office adopted the model and method for calculation and recognizing WACC in heat tariffs for the years 203-2015
5 April PGE decided to quit construction of unit at Opole power plant
16 April European Parliament rejected proposal of the European Commission for so-called backloading, i.e. rescheduling auctions for 900m CO2 emission allowances after 2013
Energy market – Q1 2013 and recent events
Key events
4
Stalowa Wola – new CCGT unit (450 MWe / 240 MWt)
Tychy – new CHP unit(50 MWe / 86 MWt)
Wind farms:40 MW in Wicko and 100 MW in Marszewo
Blachownia – new CCGT unit(850 MWe)
Katowice – new CCGT unit(135 MWe / 90 MWt)
Tychy – fluidized bed boiler conversion to biomass burning(40 MWe)Investment commissioned in Q1 2013
Stalowa Wola – boiler conversion to biomass burning (20 MWe)Investment commissioned in Q1 2013
The CAPEX program is aimed at upgrading generation assets and cost-effectively increasing generation capacity located in the vicinity of TAURON Group’s existing assets (brownfield projects)
ZEC Bielsko-Biała – new heat unit(50 MWe / 182 MWt)
Jaworzno III – upgrade of boilers to comply with future nitrogen emission standards
Łaziska – upgrade of boilers to comply with future nitrogen emission standards
Jaworzno III – new coal-fired unit (910 MWe)
Implementation of CAPEX program
I kwartał 2012 I kwartał 2013 0
100 000
200 000
300 000
400 000
500 000
600 000
25,097 30,284
188,183111,241
4,945 122,516
223 276
245 9835981
53361,936
6,70959,627
15,919960
2,866
Wydobycie Wytwarzanie OZE Dystrybucja Sprzedaż Obsługa Klienta Ciepło Pozostałe
541510
5
6%
PLNm
After Q1 2013 TAURON Group’s CAPEX amounted to PLN 541m and was higher than in comparable period last year by approx. 6% (PLN 510m after Q1 2012). This was mainly due to increase of investments in Distribution and RES Segments.
The main investment projects executed in Q1 2013 included: - construction of new generation assets (capital expenditures: PLN 48m) and construction of installations for Nox emission reduction
(capital expenditures: PLN 45m) in Generation - construction of wind farms: Marszewo and Wicko (capital expenditures: PLN 108m) in RES - construction of new connections (capital expenditures: PLN 78m); upgrade and restoration of grid assets (capital expenditures: PLN
147m) in Distribution
Capital expenditures
Mining Generation
Q1 2012 Q1 2013
6
Mac
roec
onom
ic fi
gure
sEl
ectr
icity
gen
erat
ion
I kwartał 2011 I kwartał 2012 I kwartał 2013 0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
25,068 23,430 23,721
12,998 14,353 13,843
1,407 1,817 1,9263,822 3,905 3,809
Pozostałe
Odnawialne Źródła Energii
El. cieplne na węgiel brunatny
El. cieplne na węgiel kamienny
Q1 2011 Q1 2012 Q1 2013
Other
RES
Lignite-fired power plants
Hard coal-fired power plants-6.5% +1.2%
43 294 43 505 43 300
+10.4% -3.6%
+0.5% -0.5%
+29.1% +6%
(TWh)Q1 2011 Q1 2012 Q1 2013
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000 9.3%
4.9%
-2.0%
4.5%
3.5%1.1%(forecast for Q1 2013)*1.5%
1.6%
-1.8%
1 610 GWh
1 158 GWh
1 772 GWh
Industrial production
GDP
Electricity consumption
Export (GWh)
-28% +53%
GWh
Macroeconomic and market figures
7
Q1 2012 Q1 2013 Change
Production of commercial coal (million t) 1.21 1.52 25.6%
Electricity generation (net production) (TWh) 4.98 5.15 3.4%
including: from renewable sources 0.30 0,28 -6.7%
Heat generation (PJ) 7.80 7.70 -1.3%
Distribution (TWh) 12.70 12.42 -2.2%
Electricity supply (TWh) 11.89 10.93 -8.1%
Number of customers – Distribution (thousand) 5 284 5 307 +23 thousand
Key operating data
I kwartał 2012 I kwartał 20130
1,000
2,000
3,000
4,000
5,000
6,000
7,000
6,4555,163
-4.4%6 173
I kwartał 2012 I kwartał 20130
100
200
300
400
500
600
700
800
900
559
788
I kwartał 2012 I kwartał 20130
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
5% 6%23% 14%
6%2%
46% 43%
10%28%
1.4%
1%
10%
8%
1%
0.2%975
1 221
Wydobycie Wytwarzanie OZE Dystrybucja Sprzedaż Obsługa Klienta Ciepło Pozostałe
I kwartał 2012 I kwartał 20130
100
200
300
400
500
600
700
3,4% 3,7%
8 Share of minority shareholders in profit
TAURON Group’s EBITDA per segment (PLNm); EBITDA structure
46,9%
25.2%
41.1%
TAURON Group’s revenue (PLNm)
TAURON Group’s EBIT (PLNm)
-20%
TAURON Group’s net profit (PLNm)
395
580
Financial results for Q1 2013
- - - Comparable sales level (including: revenue from LTC and sale of 100% generated electricity through power exchange, similar to Q1 2012)
Q1 2012
Q1 2012
Q1 2012
Q1 2012 Q1 2013 Q1 2013
Q1 2013 Q1 2013
Wydobycie Wytwarzanie OZE Dystrybucja Sprzedaż Obsługa klienta
Ciepło Pozostałe Pozycje nieprzyp-
isane / wyłączenia
0
200000
400000
600000
800000
1000000
1200000
1400000
975
1,221,101
23,907.0 (60,0)(26,3)
77,9
246,662.0 (1,2) (5,1) (8,6) (1,1)
9
EBIT
Depreciation
Increase in segment
Decrease in segment
Change in segment in %
EBITDA margin
PLNm
49% -26% -49% 17% -9% -5%244% -79%
788
EBITDAQ1 2013
559
EBITDAQ1 2012
Change in EBITDA per segment (PLN and %); EBITDA margin per segment (%)
-
23.9%13.3%19.6% 11.6%7.3%65.4% -15.1% 23.7%2.3%34.1%
EBITDA – Q1 2013
GenerationMining RES Distribution Supply Customer Service
Heat Other Unallocated items/
exclusions
10
Cash flow – changes in Q1 2013
Increase
Decrease
PLNm
Środki pien. n
a 01.01....
Przepływ
y oper. r
azem
Zysk b
rutto
Amortyza
cja
Zmiana stanu nal. i
zob.
Pozosta
łe korekty
zysk
u ...
Przepływ
y inwest.
razem
Nabycie rz
ecz. a
kt. trw
. i wa...
Udzielenie / s
płata poż...
Pozosta
łe przepływ
y z dz...
.
Przepływ
y fin. ra
zem
Wpływy z
tyt. z
aciągnięcia
p...
Spłata pożycze
k/kred...
Odsetki
zapłaco
ne
Pozosta
łe przepływ
y z dz. .
..
Środki pien. n
a 31.03....0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
891654 815188
665,007
425,434
736,059
432,521
7,496
451,180
(9)
(384)(120)
(1 141)(33)
(8) (9)
1,166,909
Cash flow changes
Cash as of 01.01.2013
Total operating cash flow
s
Gross profit
Depreciation
Change in liabilities and
receivables
Other gross profit
adjustments
Total cash flow from
investment
Purchase of fixed assets and
intangible assets
Granting / repayment of
loans
Other cash flows from
investment activity
Total cash flows from
financial operations
Inflows from
credits and
loans
Repaym
ent of credits and
loans
Interest paid
Other cash flows from
financial operations
Cash as of 31.03.2013
Zadłużenie netto na 01.01.2013
Przepłwy operacyjne przed opodatkowaniem
Zmiana kapitału pracującego
Wydatki inwestycyjne
Sprzedaż rzeczowych
aktywów trwałych i wartości
niematerialnych
Podatek dochodowy zapłacony
Pozostałe Zadłużenie netto na 31.03.2013
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
4535221
5114526
(1 169)
(5)
350,817
1,141,405205,615 54,896
CAPEX
11
net debt / EBITDA1.33x
PLNmGroup’s debt level
In Q1 2013 net debt increased by approx. PLN 570m (among others, as a result of drawing new tranches of the loan from EIB in the amount of PLN 542m)
Group’s debt level
Net debt as of 1.01.2013
Operating cash flow before tax
Change in working capital
Sales of fixed assets and intangible
assets
Income tax paid
Other Net debt as of 31.03.2013
I kwartał 2012 I kwartał 20130
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
13% 15%
27%32%
24%21%
6%8%
29%23%
1%1%
Amortyzacja i odpisy aktualiz. Zużycie materiałów i energii Usługi obce Podatki i opłatyKoszty świadczeń pracowniczych Pozostałe koszty rodzajowe
12
Cost increase in Q1 2013 is mainly attributable to:
consumption of energy and materials
taxes and fees – cost of provision set up in Q1 2013 for CO2 emission allowances
depreciation
In Q1 2013 variable costs (excluding the value of goods and materials sold) constituted approx. 37% and fixed costs constituted approx. 63% of the total costs. Change in comparison to Q1 2012 when variable costs constituted 46% and fixed costs constituted 54% results from lower variable costs of Generation and Heat (lower fuel costs) and Distribution (lower costs of transmission fee)
6.0%
PLNm2 618
2 775
Prime cost structure
Q1 2013 Q1 2012
Amortization and impairmentTaxes and fees
Consumption of energy and materialsCosts of employee benefits
Outsourced servicesOther prime costs
13
Efficiency improvement program
Wydobycie Wytwarzanie Ciepło Dystrybucja oszczędności 20130
10
20
30
40
50
60
70
80
90
100
2
447
34
87
Efficiency improvement program for 2013-2015Cumulative OPEX savingsPLNm
PLN 0.9bn
Heat Distribution 2013 Savings
Voluntary Redundancy Program: since the program’s launch 89 persons enrolled, as of the end of Q1 2013. Over that period employment contracts were terminated with 297 persons. Savings resulting from redundancies, decreased by costs incurred to generate those savings, are included in the amounts presented per segment.
Having completed the first efficiency improvement program, TAURON Group has launched a similar program planned for 2013-2015, which should bring an approx. PLN 860m OPEX reduction. As a result of the program implementation the Group expects OPEX reduction in most segments – with the biggest savings coming from Distribution and Generation.
Mining Generation
EBITDA 2012 EBITDA 20130%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
7%
22%
4%
51%
6%
12%
1%1%
Wydobycie Wytwarzanie OZE Dystrybucja Ciepło Sprzedaż Obsługa Klienta Pozostałe
(-)
14
PLN 3.84bnForecasted decrease by up to 15% compared to
2012Strengths Weaknesses
(+) forecasted increase in segment(-) forecasted decrease in segment(~) forecasted stability in segment
(~)
(+)
(-)
(+)
(+)
(~)
(~)
Reg
ulat
ed s
egm
ents
Dis
trib
utio
n +
Hea
t (ap
prox
. 57%
of E
BIT
DA
in to
tal)
Regulated segm
ents (approx. 65-67%
of EBITD
A in total)Outlook for 2013 (1)
growth in regulated segments (Distribution and Heat)
decrease of coal prices in the Group’s generation assets by approx. 12% on average in 2013 means lower average variable cost of generation per unit by approx. 10% to approx. PLN 123/MWh
lower prices of green certificates (drop of certificate price on the market by PLN 10 translates into lower costs of cancelling green certificates by approx. PLN 22m)
exposure to CO2 (carbon credits received under KPRU III (Free Carbon Credit Allocation System): 13.5m Mg; 4.0m Mg transferred from 2012 to 2013)
OPEX – planned execution in 2013 – approx. PLN 240m savings, employment reduction by approx. 1100 FTEs
final settlement of LTC program – expected cash income of approx. PLN 500m
possibile funding acquisition (state-owned bank BGK, bond issue on domestic market, EIB)
lost revenue due to falling prices of certificates (assuming electricity generation level similar to 2012) in the following segments:
a) Generation: in biomass co-firing at estimated certificate price of PLN 185/ MWh – approx. PLN 140m
b) RES: approx. PLN 75m end of LTC compensation program (PLN 567m in
2012) decrease of coal sale prices in Mining segment (coal
for electricity generation purposes – lost revenue of approx. PLN 19m per quarter; coal sold outside the Group – by approx. PLN 4m)
possible impairment loss of certain generation assets due to permanent decrease of value (in the case of further electricity price drops that impact profitability of the Group’s own generation)
Mining Generation RES Distribution SupplyHeatCustomer Service Other
EBITDA 2012 EBITDA 20130%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
7%
22%
4%
51%
6%
12%
1%1%
Wydobycie Wytwarzanie OZE Dystrybucja Ciepło Sprzedaż Obsługa Klienta Pozostałe
15
PLN 3.84bnForecasted decrease by up to 15% compared to
2012
(+) forecasted increase in segment(-) forecasted decrease in segment(~) forecasted stability in segment
possible adjustment of G tariff from H2 2013
lower volume of distributed electricity (by 1-1.5%) due to economic slowdown
possible renegotiation of electricity supply agreements by clients
reduction of electricity prices (connected with profitability of generation from own sources)
negotiations with PSE/URE (Transmission System Operator/ Energy Regulatory Office) concerning cold reserve/ spinning reserve
possible liberalization of G tariff by the President of Energy Regulatory Office
implementation of so-called Energy law three-pack, including regulations on cogeneration
growing demand (expected economy bounce back in H2 2013)
lower interest rates translate into lower financial costs for the TAURON Group
Opportunities Threats
Reg
ulat
ed s
egm
ents
Dis
trib
utio
n +
Hea
t (ap
prox
. 57%
of E
BIT
DA
in to
tal)
Regulated segm
ents (approx. 65-67%
of EBITD
A in total)
(~)(~)
(+)
(+)
(+)
(~)
(-)
(-)
Outlook for 2013 (2)
Mining Generation RES Distribution Heat SupplyCustomer Service Other
17
Thank you – Q&A
Investor Relations
Marcin Lauer [email protected]. + 48 32 774 27 06 Paweł Gaworzyń[email protected]. + 48 32 774 25 34 Magdalena [email protected]. + 48 32 774 25 38
18
Additional Information
19
Platforms:TGE, TFS, GFI,
GPW-POEE
Forward BASE (Y+Q+M)
Forward PEAK (Y+Q+M)
Forward (weighted average)
SPOT (TGE + GPW-POEE)
Total weighted average
PricePLN/MWh
VolumeGWh
PricePLN/MWh
VolumeGWh
Price%
Volume%
200.08 139 358 188.37 127 764 - 5.9% - 8.4%
225.56 17 161 207.35 13 377 - 8.1% - 22.1%
202.88 156 519 190.17 141 140 - 6.3% - 9.8%
173.58 20 388 155.00(Forecast)
21 000(Forecast) - 10.7% + 3%
199.50 176 907 185.62 162 140 - 7.0% - 8.3%
Electric energy
CO2 emission allowances (EUR/t): Certificates (PLN/MWh)
Type of certificate
Market prices (average in April 2013)
Substitution fee and obligation for
2013
RES (green) 120.06 297.35 (12.0%)
Coal co-generation (red) 0.84 29.84 (not
announced)
Gas co-generation (yellow) 44.44 149.30 (not
announced)
Methane (violet) 58.00 60.00 (0.9%)
2012 2013 (until 17.04.2013) 2013/2012
Survey of CO2 market analysts*
Price (EUR/t)
Average in 2013 2 – 5 EUR/t
Average in 2014 5 – 9 EUR/t
Average in 2015 6 – 10 EUR/t
EUA average price in 2013 (TAURON forecast) 2 – 4 EUR/t
*Source: Deutsche Bank, Barclays Capital, Point Carbon
Electric energy market price trends
2012/01/01 2012/02/23 2012/04/16 2012/06/08 2012/07/31 2012/09/22 2012/11/14 2013/01/06 2013/02/28 2013/04/22145
155
165
175
185
195
205
215
Y-13 Q1-13 Q2-13 Q3-13 Q4-13
Pric
e [P
LN/M
Wh]
20
Prices of BASE contracts concluded for 2013
Average price of concluded contracts [PLN/MWh]: Volume [GWh]Annual 191.60 108 861
Quarterly 171.69 15 578Monthly 161.02 3 325TOTAL 188.37 127 674
BASE contracts for 2013
2012/01/01 2012/02/22 2012/04/14 2012/06/05 2012/07/27 2012/09/17 2012/11/08 2012/12/30 2013/02/20 2013/04/13170
180
190
200
210
220
230
240
250
Y-13 Q1-13 Q2-13 Q3-13 Q4-13
Pric
e [P
LN/M
Wh]
21
Prices of PEAK contracts concluded for 2013
Average price of concluded contracts [PLN/MWh]: Volume [GWh]Annual 209.09 12 037
Quarterly 191.37 834Monthly 192.21 506TOTAL 207.35 13 337
PEAK contracts for 2013
2013/01/01 2013/01/16 2013/01/31 2013/02/15 2013/03/02 2013/03/17 2013/04/01 2013/04/16150
160
170
180
190
200
210
220
230
Y-14 Q1-14 Q2-14 Q3-14 Q4-14
Pric
e [P
LN/M
Wh]
22
Prices of BASE contracts concluded for 2014
Average price of concluded contracts [PLN/MWh]: Volume [GWh]Annual 174.90 51 596
Quarterly 163.99 149MonthlyTOTAL 174.87 51 745
BASE contracts for 2014
PLN 230/MWh – prices of first BASE Y-14 transactions concluded in July 2011
2013/01/06 2013/01/20 2013/02/03 2013/02/17 2013/03/03 2013/03/17 2013/03/31 2013/04/14170
175
180
185
190
195
200
205
210
215
Y-14 Q1-14 Q2-14 Q3-14 Q4-14
Pric
e [P
LN/M
Wh]
23
Prices of PEAK contracts concluded for 2014
Average price of concluded contracts [PLN/MWh]: Volume [GWh]Annual 188.84 639
QuarterlyMonthlyTOTAL 188.84 639
PEAK contracts for 2014
24
Capacity – 50 MWe / 182 MWt
Scheduled commissioning – H1 2013
ZEC Bielsko-Biała – new heat unit
Capacity – 50 MWe / 86 MWt
Scheduled commissioning – H1 2016
Elektrociepłownia Tychy – new CHP unit
Status as of 31 March 2013: 15 March – adjustment completed, trial run commenced.
General Contractor: Polimex-Mostostal
Status as of 31 March 2013: Contractor selection for the new unit is underway
Elektrociepłownia Tychy – upgrade of fluidized bed boiler (biomass-fired)
Capacity – 40 MWe
Status as of 31 March 2013: biomass boiler construction:
15 February – licence for energy generation granted by the Energy Regulatory Office, contractor: Metso Power Oy
construction of biomass feeding system: construction works are underway, contractor:
Mostostal Warszawa (commissioning – H1 2013)
WR 40 boiler construction: preparation of installation for warranty
measurements, trial operation underway, contractor: SEFAKO (commissioning – H1 2013)
Elektrownia Stalowa Wola – upgrade of K-10 boiler (biomass-fired) Capacity – 20 MWe Scheduled commissioning – Q1 2013
Status as of 31 March 2013: 28 March – K-10 boiler was commissioned. General
Contractor: Rafako
Capacity – 40 MWe
Scheduled commissioning – 2013
Wind farm – Wicko
Status as of 31 March 2013:General Contractor – Consortium: Kraków-based Aldesa Nowa
Energia and Madrid-based Aldesa Construcciones Engineering works are completed for access roads and
assembly sites for 12 wind turbines Production of gondolas, towers and blades for 20 wind
turbines
Implementation of CAPEX program
25
Capacity – 450 MWe / 240 MWt
Scheduled commissioning – 2015
Elektrownia Stalowa Wola – new CCGT unit
Status as of 31 March 2013: General Contractor – Abener Energia Construction works have started Detailed design works are completed: for the river bar on
San river and foundations of the main buildings. Works on remaining detailed designs are underway
Capacity – 135 MWe / 90 MWt
Scheduled commissioning – 2016
Elektrociepłownia Katowice – new CCGT unit
Status as of 31 March 2013: Contractor selection is underway 5 March – final Terms of Reference and invitations to
submit final offers were sent
Capacity – rzędu 850 MWe
Scheduled commissioning – 2017
Elektrownia Blachownia – new gas unit
Status as of 31 March 2013: Terms of Reference – preliminary requirements for the
tender for General Contractor of the unit are under preparation
Wind farm – Marszewo
Capacity – 100 MWe Scheduled commissioning – 2014
Status as of 31 March 2013: Finish works and tests of the Main Supply Station are
underway Works involving medium-voltage grid have been completed
and commissioned Wind turbine assembly underway (33 out of 41 turbines
have been assembled)
Implementation of CAPEX program (2)
26
Scope – upgrading six OP-650k type boilers to comply with the lower NOx emission standards to be binding in Poland from 2018
Commencement of the works – 2010; scheduled commissioning – 2016
Elektrownia Jaworzno III – boilers’ upgrade
Status as of 31 March 2013: Upgrade of units No. 2 and No. 4 is completed. Works on
unit No. 6 have commenced General contractor: consortium of Fortum Power and Heat
(consortium leader) and Zakłady Remontowe Energetyki Katowice (consortium member)
Scope – upgrading four OP-650k type boilers to comply with the lower NOx emission standards to be binding in Poland from 2018
Commencement of the works – 2010; scheduled commissioning – 2015
Elektrownia Łaziska – boilers’ upgrade
Status as of 31 March 2013: Works at units No. 12 and No. 11 are completed Warranty measurements at unit No. 11 are underway General contractor: STRABAG
Capacity – 910 MWe
Scheduled commissioning – 2018
Elektrownia Jaworzno III – new coal-fired unit
Status as of 31 March 2013: 24 January – TAURON Wytwarzanie selected the offer
submitted by consortium of Rafako and Mostostal Warszawa as the winning bid in the tender for construction of the unit at Jaworzno
25 March – Polish Appeals Chamber dismissed appeals filed by consortium: SNC-Lavalin Polska, SNC-Lavalin Inc. And Hitachi Power Europe GmbH and consortium: China National Electric Engineering and China Overseas Engineering Group
Implementation of CAPEX program (3)
27
Customer Service
SEGMENT
Supply SEGMENT
Heat SEGMENT
RES SEGMENT
Mining SEGMENT
RES Segment: TAURON EkoenergiaBELS INVESTMENTMEGAWAT MARSZEWOLipniki
Heat Segment: TAURON CiepłoEC TychyEC Nowa
Generation SEGMENT
Other SEGMENT
Distribution SEGMENT
Supply Segment: TAURON SprzedażTAURON Sprzedaż GZETAURON Polska EnergiaTAURON Czech Energy
Distribution Segment:TAURON DystrybucjaTAURON Serwis GZE
Generation Segment: TAURON Wytwarzanie
Other Segment:Kopalnia Wapienia CzatkowicePE-PKH
Mining Segment:Południowy Koncern Węglowy
In Q1 2012 TAURON introduced the new reporting model dividing the Group’s operations into eight segments
Customer Service Segment: TAURON Obsługa Klienta
Reporting model
28
Change of: Revenue EBITDA EBIT in the segment (in PLNm)
307
373
4973
2346
0
50
100
150
200
250
300
350
400
Q1 2012 Q1 2013
Mining – key financial data
29
Increase
Decrease
PLNm
EBIT I-III 2012 (wyk.) Wolumen sprzedaży węgla
Cena sprzedaży węgla Jedn. koszt własny sprzedanego węgla
Pozostałe przychody / koszty
EBIT I-III 2013 (wyk.)0
10,000
20,000
30,000
40,000
50,000
23359
45966
8,299
39,865
(23)
(2)
Mining – EBIT bridge
EBIT Q1 2012 (result)
Coal sales volume
Coal sales price
Own cost of coal sold per unit
Other revenue/ costs
EBIT Q1 2013(result)
30
1 3961 262
227 167101 350
200
400
600
800
1 000
1 200
1 400
1 600
Q1 2012 Q1 2013
Change of: Revenue EBITDA EBIT in the segment (in PLNm)
Generation from conventional sources – key financial data
31
Increase
Decrease
PLNm
EBIT I-III 2012 (wyk.)
Cena sprzedaży
energii
Jednostkowy koszt zmi-enny wyt-warzania energi el.
Rezerwa na koszty
niedoboru CO2
Marża na obrocie
energią el.
Koszty stałe bez
amortyzacji
Wolumen sprzedaży energi z własnej
produkcji
Marża na cieple
Przych. z tyt. rekompen-saty KDT
Pozostałe przychody /
koszty
EBIT I-III 2013 (wyk.)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
100623
34872
46,455
30,297
61,4529,921
9,921
4,206(56)(51)
(121)
Generation from conventional sources – EBIT bridge
EBIT Q1 2012
(result)
Electricity sales price
Variable cost of
electricity generation
per unit
Provision for costs to cover
CO2 shortage
Margin on electricity
trading
Fixed costs less
depreciation
Volume of electricity
sold – own generation
Margin on heat
Revenue due to LTC
compensation
Other revenue/
costs
EBIT Q1 2013
(result)
32
67
42
54
27
43
18
0
10
20
30
40
50
60
70
Q1 2012 Q1 2013
Change of: Revenue EBITDA EBIT in the segment (in PLNm)
Generation from renewable sources – key financial data
33
Increase
Decrease
PLNm
EBIT I-III 2012 (wyk.)
Wolumen sprzedaży - el.
wodne
Wolumen sprzedaży - el.wia-
trowe
Cena sprzedaży certyfikatu
Amortyzacja Pozostałe przychody /
koszty
EBIT I-III 2013 (wyk.)
0
10,000
20,000
30,000
40,000
50,000
43136
179781,161
(4)
(7)
(15) (0,5)
RES – EBIT bridge
EBIT Q1 2012(result)
EBIT Q1 2013
(result)
Supply volume – hydro power
plants
Supply volume – wind farms
Certificate sales price
Depreciation Other revenue/ costs
34
1 562 1 541
447525
229 301
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Q1 2012 Q1 2013
Change of: Revenue EBITDA EBIT in the segment (in PLNm)
Distribution – key financial data
35
Increase
Decrease
PLNm
EBIT I-III 2012 (wyk.)
Wolumen sprzedaży usług dystr.
Cena sprzedaży usług dystr.
Poz. przychody zw. z dystry-
bucją
Jedn. koszty zmienne
Koszty stałe Wynik na po-zostałej dzi-
ałalności podst.
Pozostałe przychody /
koszty
EBIT I-III 2013 (wyk.)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
228990
300880
21,350
70,380
17,413
(17)(8)
(6) (7)
Distribution – EBIT bridge
EBIT Q1 2012
(result)
EBIT Q1 2013
(result)
Sales volume – distribution
services
Sales price – distribution
services
Other revenue from
distribution
Variable costs per
unit
Fixed costs Result on other
operations
Other revenue/
costs
36
4 5054 791
101 34894 339
0
1 000
2 000
3 000
4 000
5 000
6 000
Q1 2012 Q1 2013
Change of: Revenue EBITDA EBIT in the segment (in PLNm)
Supply – key financial data
37
Increase
Decrease
PLNm
EBIT I-III 2012 (wyk.)
Wolumen sprzedaży
energii elek-trycznej
Cena energii elektrycznej
Cena PM zielonych
Brak PM cz-erwonych i
zółtych
Akcyza Poz. towary, usługi hand-
lowe
Pozostałe przychody /
koszty
EBIT I-III 2013 (wyk.)
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
94
339
83,628
92,563
80,709
18,676 2,486
(32)
(6)
Supply – EBIT bridge
EBIT Q1 2012
(result)
EBIT Q1 2013
(result)
Electricity sales
volume
Electricity sales price
Price of green
certificates
Lack of red and yellow certificates
Excise tax Other goods, commercial
services
Other revenue/
costs
38
384 400
101 9678 70
0
50
100
150
200
250
300
350
400
450
Q1 2012 Q1 2013
Change of: Revenue EBITDA EBIT in the segment (in PLNm)
Heat – key financial data
39
Increase
Decrease
PLNm
EBIT I-III 2012 (wyk.)
Wolumen dys-trybucji ciepła
Cena sprzedaży ciepła
Marża na certy-fikatach
Koszty stałe bez amortyzacji
Rezerwa na koszty niedoboru
CO2
Pozostałe przychody /
koszty
EBIT I-III 2013 (wyk.)
0
20,000
40,000
60,000
80,000
100,000
120,000
7805269866
3,852
11,508 6,528
(9)
(19) (2)
Heat – EBIT bridge
EBIT Q1 2012
(result)
EBIT Q1 2013
(result)
Heat distribution
volume
Heat sales price
Margin on certificates
Fixed costs less
depreciation
Provision for costs to cover CO2 shortage
Other revenue/ costs
40
84
104
13 1210 9
0
20
40
60
80
100
120
Q1 2012 Q1 2013
Change of: Revenue EBITDA EBIT in the segment (in PLNm)
Customer Service – key financial data
41
Increase
Decrease
PLNm
EBIT I-III 2012 (wyk.)
Przychody CUW IT Przychody CUW R Przychody CUW OK
Przychody CUW HR
Koszty świad-czonych usług
Pozostałe przychody /
koszty
EBIT I-III 2013 (wyk.)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
9864 8986
21,244
11,338
471.5
(13)
(21) 267.1
Customer Service – EBIT bridge
EBIT Q1 2012
(result)
EBIT Q1 2013
(result)
Shared Services IT
revenue
Shared Services
Accounting revenue
Shared Services Customer Service revenue
Shared Services HR
revenue
Costs of services provided
Other revenue/ costs
42
Change of: Revenue EBITDA EBIT in the segment (in PLNm)
112104
112
90,1
0
20
40
60
80
100
120
Q1 2012 Q1 2013
Other – key financial data