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TRANSCRIPT
Hellenic Petroleum Group
Greek Investment Forum NY
October 2012
Energy for life
11
Contents
• Introduction - Group overview
• Strategy and targets
• Group business units
• Funding & Dividend
• Financials
22
A diversified regional energy player, which just completed a significant transformation
• A leading regional energy Group, built around its strong R&M asset base
• Completed its transformational investment plan, moving to the delivery phase of a significant cash generation improvement
• Solid financial position throughout the cycle, successfully completing the heavy capex period and managing through Greek crisis and regional challenges; concluding the refinancing of major facilities
• Involved in two major privatisations (HP and DEPA)
Group business overview
Refining, Supply & Trading
Domestic Marketing
InternationalMarketing
Petrochemicals
Power & Gas
DESCRIPTION METRICS
• Exploration assets in Egypt: West Obayed (30%), Mesaha (30%)
• Strong refining asset base with significant cash flow generation potential– Aspropyrgos (FCC, 145kbpd)– Elefsina (HDC, 100kbpd)– Thessaloniki (HS, 95kbpd)
• Owner of only refinery in FYROM
• Capacity: 16MT• NCI: 9.3• Market share: 65%• Logistics capacity: 7m M3
• Leading position in all market channels (Retail, Commercial, Aviation, Bunkering)
• c.2,000 petrol stations• 29% market share• Sales volumes: 4MT
• Presence in Cyprus, Montenegro, Serbia, Bulgaria
• Served by own refineries
• c.290 petrol stations• Sales volumes: 1MT
• Sole producer and main marketer in Greece with strong export orientation
• PP value chain integrated with refineries• Capacity (PP): 220 kt
• Second largest IPP in Greece (CCGT) • Capacity: 810 MW
• 35% in Greece’s incumbent NatGassupply company • Volumes (2011): 4.3bcm
Exploration & Production
Group business overview - 2011 key core business figures
Refining, Supply & Trading
Domestic Marketing
InternationalMarketing
Petrochemicals
Power & Gas
(1) Total sales (not consolidated at Group level)(2) Net income contribution (consolidated using equity method(3) As consolidated (does not include associates)
ASSETS€ Μ
SALES€ Μ
EBITDA€ Μ
FTEs
2,680 8,937 259 2,967
428 2,958 21 590
293 995 45 417
164 340 44 193
610 2,1561 672 972
GROUPTOTAL3 4,217 9,308 363 4,242
55
Coastal location supports a regional integration role and provides growth opportunities in neighboring markets
Coastal location of refineries ensures wide crude oil sourcing options
Cost advantaged to supply SEE/East Med markets with end-products
Opportunities for regional consolidation and synergies on logistics footprint
66
Key MilestonesTransforming stand-alone government controlled Greek companies to a leading private sector regional energy player
PETROLA(ElefsinaRefinery)
DEP & DEPEKY
(Greek E&P)
ELDA(Aspropyrgos
Refinery)
ESSO-PAPPAS
(ThessalonikiRefinery)
PETROLA(ElefsinaRefinery)
DEP & DEPEKY
(Greek E&P)
ELDA(Aspropyrgos
Refinery)
ESSO-PAPPAS
(ThessalonikiRefinery)
19981960 –1998 2003 2007 2008 2009 2012
Elpedison: 50/50 JV with Italy’s Edison, in Greek Power generation and trading
Libyan upstreamconcessions sold toGDF Suez for $170m
2010
Thessaloniki Refinery upgrade completed
Free Floatc22%
POIHc42%
Hellenic Republic
c36%
Sale of 70% stake inW. Obayed upstream concession in Egypt
Acquisition of BP’sGround Fuels businessin Greece
Merger with PetrolaHellas
Elpedison’s 2nd CCGTPlant (420MW) incommercial operation
Shareholding events
Listing of new Group in ASE/LSE as partof a privatisation
Greek Government announces its intention to divest its shareholding in ELPE
2011
Launch of DEPA privatisation process
Elefsinaupgraded refinery commercial operation
POIH becomesstrategic investorwith 25% stake
77
Contents
• Introduction - Group overview
• Strategy and targets
• Group business units
• Funding & Dividend
• Financials
8
Focus on strengthening R&M, restructuring portfolio and transform organisation for competitiveness
450
Historic Average Refining Assets Marketing Assets PortfolioRationalisation
PerformanceImprovement
Medium Term
Adjusted EBITDA evolution (at historic mid cycle margins)€ million
150-250
150-200
30-5030-50
700-900
Capexdriven
Transformation driven
1
2
5
Upgrade Refining Assets
Manage Portfolio
Fit-for-purpose organisation
3
Enhance vertical integration
4 Improve competitiveness
Doubling of operating profitability implemented despite challenging environment; transforming ELPE cash generation profile
36050
200
2070
700
FY11 Refining Assets Additional Opsimprovements
PerformanceImprovement
Medium Term
Adjusted EBITDA evolution 2011-2013 (€ mil)
Margin uplift
350 -700
-350EBITDA Capex Pre Tax Free Cash
Flow
Investment phase
550
-150
700
EBITDA Capex Pre Tax Free CashFlow
Post-upgrade
Cash Flow profile pre and post-investment plan* (€ mil)
9
8
6380
9
33
40
4
60
80
9
39
40
0
50
100
150
200
250
2008 2009 2010 2011 1H2012 Cumulative impact Medium Term Target
Group Re-organisation and HRProcurement ProcessesMarketing competitivenessRefining Excellence
15
63
6324
30 195
240
10
Transformation initiativesTotal annual benefit since launch at €195m, planning to generate additional €40-50m over the next 2 years…
Evolution of transformation initiatives (€m)
Annual Cumulative Impact 15 78 141 165
2011
4.242
2008
5.138 -17%
Group Headcount (FTEs)
645750
20112009
-16%
Group opex (€m)
466526
458506
301357
233192
7
61
117
130
80
7.3 7.22 7.076.77
3.74
4.38
2.87
5.2
0
100
200
300
400
500
600
700
800
2005 2006 2007 2008 2009 2010 2011 1H12
EURm
11
…Supporting Group results through a period of weak margins and Greek crisis
Group adjusted EBITDA (€m) evolution vs benchmark FCC cracking margins ($/bbl)
Med FCC Benchmark margins
Contribution from transformation initiatives
1212
Contents
• Introduction - Group overview
• Strategy and targets
• Group business units
• Funding & Dividend
• Financials
10.6
1.5
6.7
11.0
8.17.3
Aspropygros Elefsina Thessaloniki
NCI Pre upgrade NCI Post upgrade
13
Upgrade - Key FactsInvestment Plan Elefsina Refining upgradeCapex c €1.2bn Units 40 kbd hydrocracker
20 kbd flexicoker Emissions SO2 70%
PM 84%
Refining and UpgradesElefsina & Thessaloniki projects completed; refineries in operation
N.C.I: Nelson Complexity Index
Transformation
Improve Net Cash margin by 1.0-1.5$/bblImprove 2 Quartiles in Solomon Index
c. €200m
Upgrade - Key Facts (Completed) Upgrade - Key FactsInvestment Plan Thessaloniki Refining upgrade Capex €0.2bnUnits + 20kbd C.D.U 95kbd
15 kbd CCREmissions SO2 60%
PM 60%
FCC HDC/FC HS145kbpd 100kbpd 95bpd
NCI evolution – benchmark margins ($/bbl, average 2011-12)5 -34
14
Greek petroleum market overviewSolid position supported by vertical integration strategy; refining long in high demand products
3rd party Imports
60-65% 25-30%
0-10%
Retail, C&I (Construction,
wholesale)
Aviation & Bunkering
Greek Refining capacity: 25MT
Domestic market: 13MT
ELPE Group subsidiaries: 4MT (30%)
MOH captive market: 4MT
(30%)
Independent marketing
companies: 5MT (40%)
ELPE exports: 7MT
ELPE Group subsidiaries:
2MT
16MT
3rd party exports: 5MT
25%MOGAS
17%ADO
22%
HGO
7%Jet
24%Bunkers
5%
OtherGreek market product breakdown
15
Greek Refining, Supply & Trading EconomicsUSD based value chain with significant trading returns complementing refining
Markets(sales premia varying across channels)
Refining(Med benchmark returns & operations performance)
Refined Products(16.0m MT)
Imported Products(1-1.5m MT)
Aviation & Bunkering (Med competitive pricing)
Exports, Intra-Group (Platts Med FOB based + premia)
Domestic market (Import parity pricing)
4-6 MT
3 MT
Exports, 3rd parties (Platts Med FOB based)
2 MT
6-7 MT
AspropyrgosNCI 11.0145kbpd
FCC Cracking
ThessalonikiNCI 7.395kbpd
Hydroskimming
ElefsinaNCI 8.1100kbpd
HDC
16 MT
1-1.5 MT
$ / €
16
Elefsina Refinery Overview
• Elefsina Refinery, a 100kbpd coastal refinery with private port and a tank farm of 3.3 mlnM3, transformed, from a topping, to a top cash net-back refinery through a major upgrade
• Completed one of the largest manufacturing projects in SEE Europe:– Second fully converted European refinery combining a hydrocracker and a flexicoker– Middle distillates and naphtha producer, no fuel oil production
• Safe commissioning and smooth refinery hand-over to operations team
• First product shipments from the new refinery in September
• Optimisation of the new refinery units and south-hub supply chain over the next 12 months to yield additional benefits
• Elefsina Refinery upgrade will impact Group cash generation from 3Q12 onwards
• Incremental export capacity reduces Group’s dependence on Greek market
17
Vacu
umU
nit
Atm
osph
eric
Dis
tilla
tion
Hyd
rocr
acke
r (U
OP)
Flex
icok
er(E
xxon
Mob
il)
Ker
osen
eSw
eete
ning
New units, Sulphur, Amine, SWS
Die
sel
Des
ulph
uriz
atio
n
LPG
Naphtha
Jet Fuel
AutoDiesel
Petcoke or Flexigas
Sulphur
Propane
HeatingDiesel
MarineDiesel
Ligh
t End
s
Rec
over
y
Crude
Existing Units
New Units
Hydrogen (Haldor Topsoe)
Elefsina Refinery: summary configuration
20kbpd
40kbpd
c.50% of CDU output
• Nelson complexity raised to 8.1• All emissions significantly reduced (eg SO2 by 70% and PM by 84%)
100kbpd
45kbpd
-5
0
5
10
15
20
25
JAN
07
APR
07
JUL0
7
OC
T07
JAN
08
APR
08
JUL0
8
OC
T08
JAN
09
APR
09
JUL0
9
OC
T09
JAN
10
APR
10
JUL1
0
OC
T10
JAN
11
APR
11
Jul-1
1
Oct
-11
Jan-
12
Apr-1
2
Jul-1
2
Aspropyrgos Elefsina
0
100
200
300
400
Jan
09M
ar 0
9M
ay 0
9Ju
l 09
Sep
09N
ov 0
9Ja
n 10
Mar
10
May
10
Jul 1
0Se
p 10
Nov
10
Jan
11M
ar 1
1M
ay 1
1Ju
l 11
Sep
11N
ov 1
1Ja
n 12
Mar
12
May
12
Jul 1
2Se
p 12
18
Elefsina Refinery – key economicsTransformational investment in Elefsina significantly enhancing competitiveness
$/T
ULSD – HSFO spread Cracking margins ($/bbl) – Aspropyrgos vs Elefsina
Elefsina Utilisation rate*
Upgrade impact on product yieldmillion tonnes / year
74%
53% 55%
35%
6%
100%
0%
25%
50%
75%
100%
FY07 FY08 FY09 FY10 FY11 Proforma(*) over operational availability (i.e. post start-up)
Average 2011-12 ($/bbl)Aspropyrgos 4.01Elefsina 4.67
19
Significant impact of refinery upgrades on the Group’s crude and product slate, thus delivering strong cash flows
26%15%
32%45%
9% 8%
23% 21%
10% 11%
Pre upgrade Current
Other
Gasoline
Jet
Diesel/Gas oil
Fuel oil15% 11%
10%0%
75%89%
Pre Upgrade Current
High sulphur
Medium sulphur
Low sulphur
47%
24%
11%11%
17% 25%
64%
Pre upgrade Current
Other
Jet
Diesel/Gas oil
Fuel oil
Crude slate — Group-wide Product slate — Group-wide
Crude slate — Elefsina Product slate — Elefsina
41%
59%
100%
Pre upgrade Current
High sulphur
Medium sulphur
1,175 1,078 1,041
1,1701,108
981
2009 2010 2011EKO HF
20
Domestic marketingLeading position on the back of logistics and footprint; route to market / vertical integration benefit with 45% of refinery output through EKO/HF
Sales evolution (MT) Retail network evolution (# PS)2,345 2,186 2,022
2,422 2,219
966591
1,249
1,260
FY10 FY11Bunkers & Aviation C&I Retail
4,6374,070-12%
• Domestic marketing business affected by Greek crisis, due to increased duties and pressure on income; 2012 demand remains under pressure while margins show stabilising trends
• Product launches (“Ekonomy 95” and “BP Ultimate 95”) enhance customer value proposition and support market share increase
• Restructuring of the business to achieve fit-for-purpose organisation yielding results:– Headcount reduction of 125, with an annual benefit of c.€10m – Supply chain optimisation through the closure of 5 terminals– Additional savings from network rationalisation
2121
• Operating a network of c.295 stations in 7 countries exceeding 1MT of annual sales
• Maintain market leadership in:– Cyprus (EKO): 35% market share– FYROM (OKTA): 90% market share (wholesale)– Montenegro (JPK): 54% market share
• Strategic targets:– Enhance footprint: added 156 petrol stations since
2004; continue growing on selected markets– Secure top-3 position in all markets– Secure supply advantage (Northern hub, in-market
logistics, strategic supply agreements)– On the look out for potential acquisitions/strategic
partnerships in SEE/East Med– Exit non-core markets, divested Georgian
business
International Marketing Market diversification strategy and value chain integration; 10% of supply chain from Greek refineries soon to become 15%
International: Regional footprint
4 5 5 610 9 9 10
2731
3540
712
45
2005 2010 2015 2020 2025
Jet
Gasoline
Diesel/GO
+2.5%SEE* & Turkey (mtpa)
* Albania, Romania, Bulgaria, FYROM, Bosnia, Montenegro, Greece, Serbia, CroatiaSource: WoodMac
2222
PetrochemicalsVertical integration aimed at extracting additional value and maximising regional trading advantage
Position:• Only petrochemicals producer in Greece with
material presence• Domestic market share exceeds 50% in all
products, produced or traded• Strong competitive advantage in polypropylene -
vertical integration play• Exports account for 60-65% of total sales; strong
export markets in Italy, Iberia and Turkey
Targets• Debottleneck polypropylene production • Expand product portfolio:
– Add new commodity plastics (PE)– Increase selectively PP resin grade portfolio– Increase selectively BOPP film types
• Leverage regional market access through increased trading
Petrochemicals supply chain
(90 kt)
ThessalonikiRefinery
Solvents Plant (90 kt)
Caustic/ChlorinePlantNaCI Imports
AspropyrgosRefinery
BOPP Film(26 kt)
PP Plant(220 kt)
PropyleneSplitter
ImportedChemicals
DistributionCentre
MARKET
2323
Gas: 35% participation in DEPA, Greece’s incumbent gas company
• Driven by new gas-fired power plants and increasing retail penetration, gas consumption in Greece is expected to double by 2020
• DEPA:
– Owns 100% of DESFA, Greece’s gas grid owner and operator
– Owns 51% of the local supply companies (EPAs), with rights until 2036 to sell gas to small industrial, commercial and all residential customers
– Long-term contracts on pipe gas (Russian & Azeri) and capacity rights on two in-bound interconnecting pipelines
– Long-term contracts with power generators (PPC, ELPEDISON) and existing EPAs
– Participates in ITGI, South Stream (via DESFA) and Interconnector Greece-Bulgaria pipelines
• DEPA joint sale process with HRADF launched on 29 Feb;14 interested parties invited to 1st
round bidding process on 5 November
DEPA’s contribution to Group Net Income2007 2008 2009 2010 2011
Sales volume (bcm) 3.8 4.0 3.6 3.3 4.3Associate income (35% of DEPA’s net income - in €m) * 22 56 21 32 67
As a % of Group Adjusted Net Income 10% 27% 12% 16% 49%
* DEPA is consolidated via the “equity method”
Natural gas transmission network
2424
Power: Thisvi plant commercial start-up renders ELPEDISON second largest generator; development of a renewable energy portfolio
Thisvi 420MW CCGT power plant • Owned by Elpedison, a 50/50 joint venture
between Hellenic Petroleum and Edison, Italy’s 2nd largest electricity producer and gas distributor
– Largest independent power producer in Greece, owns and operates 810MW of installed CCGT capacity: a 390MW plant in Thessaloniki since 2005 and a 420MW in Thisvi since Dec 2010
– Active in power trading & marketing albeit with limited exposure due to Greek market crisis
• Hellenic Petroleum is targeting a renewables portfolio exceeding 100MW (wind, PV, biomass); currently in various development stages
25
Contents
• Introduction - Group overview
• Strategy and delivery
• Group business units
• Funding & Dividend
• Financials
26
Capital Employed and balance sheet structure
Assets Trade payables and other liabilities
Capital Employed
6,1
1,9
2,4
Receivables
Inventory
0,9
1,0
Associates
Debt Equity
4,2
Upgrades
Fixed Assets 2,1
1,5
0,6
1,8
Balance sheet overview and funding as off 30 June 2012 (€bn)
27
Refinancing – StrategyTotal capital employed at €4.2bn, net debt at €2.4bn; refinancing strategy for 40% of Group credit lines formulated based on Elefsina start-up
Group gross debt overview Syndicated €350m Term Loan:
• Repayment upon maturity, as originally planned,
out of existing cash reserves and projected
operating cash flows
Syndicated $1.18bn RCF:
• Partial repayment as above
• New loans of €800-900m will facilitate full
repayment
Facility Maturity Balance 1H12 (EURm)
Syndicated Term Loan €350m Dec 12 350
Syndicated RCF Loan $1.18m Feb 13 925
Bond loan €400m Jun 13 225
EIB Term Loan Jun 22 400
Bilaterals Various 855
Total 2,755
Cash 936
28
Refinancing - Status updateProcess accelerated with transaction expected to be launched over the next few weeks
Key refinancing plan Current status
• New loans structure and transaction
documentation completed by appointed
banks
• Selected group of MLAs from existing Greek
and international relationship base;
syndication process during October
• Support by MLAs de-risks plan as they
commit a significant part of the targeted
facility amount
• Cost will reflect prevailing market conditions
with a respective impact on average cost of
funding
• Key terms based on existing Group loan
agreements
• Drawdown timing to match RCF maturity
• 2012-15 planned Cash Flow supports
deleveraging
• Refinancing anchored around Greek and
international relationship banks which
supported the Group during the last 5 years
• Structure of new loans matched to cash
flow profile and current environment
• DEPA sale not included in base case
29
DIVIDEND POLICYAttractive & consistent yield throughout the cycle
0.08
0.570.59
0.37
0.67
0.49
0.67
0.450.45 0.45 0.45 0.45
2008 2009 2010 2011
Reported EPS Adj. EPS DPS
EPS and DPS 2008-2011 (€/share)
• 2011 payout maintained at similar
level to last 3 years, reflecting
balance sheet strength and cash
generation projections
• FY11 dividend of €0.45 per share in
line with adjusted EPS
30
Contents
• Introduction - Group overview
•Strategy and targets
•Group business units
•Funding & Dividend
•Financials
31
Group Key financials – 2004 2012
(*) Calculated as Reported less the Inventory effects and other one-off non-operating items and special income taxes
€ million, IFRS (Published) 2004 2005 2006 2007 2008 2009 2010 2011 1H 12
Income Statement Figures
Sales Volume (MT)- Refining 15,807 16,525 16,952 17,130 16,997 15,885 14,557 12,528 6,570
Sales Volume (MT)- Marketing 4,793 4,727 4,790 5,236 4,910 4,787 5,735 5,126 2,263
Net Sales 4,907 6,653 8,122 8,538 10,131 6,757 8,477 9,308 5,355
EBITDA 372 671 502 617 249 390 501 375 162
Adjusted EBITDA* 400 466 526 458 513 362 474 363 272
Net Income 128 334 260 351 24 175 180 114 44
Adjusted Net Income* 149 191 277 232 216 150 205 137 131
EPS (E) 0.42 1.09 0.85 1.15 0.08 0.57 0.59 0.37 0.14
Adjusted EPS (€)* 0.49 0.62 0.91 0.76 0.71 0.49 0.67 0.45 0.43
Balance Sheet / cash Flow Items
Capital Employed 2,335 2,956 3,442 3,557 3,153 3,927 4,191 4,217 4,259
Net Debt 386 699 1,044 977 679 1,419 1,629 1,687 1,818
Capital Expenditure 295 185 145 195 338 614 709 675 219
Dividend (€/share) 0.26 0.43 0.43 0.50 0.45 0.45 0.45 0.45 0.45
32
GROUP KEY FINANCIALS – 2Q 2012
(*) Calculated as Reported less the Inventory effects and other non-operating items
FY € million, IFRS 2Q 1H2011 2011 2012 ∆% 2011 2012 ∆%
Income Statement
9,308 Net Sales 2,180 2,639 21% 4,600 5,355 16%
335 EBITDA 103 54 -48% 269 162 -40%
67 Associates' share of profit 12 12 -4% 37 31 -14%
242 EBIT (including Associates' share of profit) 77 22 -72% 229 110 -52%
114 Net Income 60 -28 - 179 44 -76%
0.37 EPS (€) 0.20 -0.09 - 0.59 0.14 -76%
363 Adjusted EBITDA * 144 197 36% 217 272 26%
271 Adjusted EBIT * (including Associates) 118 164 39% 177 220 24%
137 Adjusted Net Income * 93 86 -7% 138 131 -5%
0.45 Adjusted EPS (€) * 0.30 0.28 -7% 0.45 0.43 -5%
Balance Sheet / Cash Flow
4,217 Capital Employed 4,554 4,259 -6%
1,687 Net Debt 1,967 1,818 -8%
675 Capital Expenditure 150 139 -7% 241 219 -9%
33
2Q 2012 FINANCIAL RESULTS GROUP PROFIT & LOSS ACCOUNT
(*) Includes headcount reduction
FY IFRS FINANCIAL STATEMENTS 2Q 1H2011 € MILLION 2011 2012 ∆ % 2011 2012 ∆ %
9,308 Sales 2,180 2,639 21% 4,600 5,355 16%
(8,657) Cost of sales (2,012) (2,544) (26%) (4,205) (5,096) (21%)
650 Gross profit 168 95 (44%) 395 260 (34%)
(467) Selling, distribution and administrative expenses (112) (91) 19% (220) (189) 14%
(4) Exploration expenses (1) (1) 0% (2) (1) 27%
(5) Other operating (expenses) / income - net* 10 7 (31%) 19 9 (54%)
175 Operating profit (loss) 65 10 (84%) 193 78 (59%)
(68) Finance costs - net (14) (10) 30% (30) (21) 30%
(11) Currency exchange gains /(losses) 12 (46) - 39 (28) -
67 Share of operating profit of associates 12 12 (4%) 37 31 (14%)
163 Profit before income tax 76 (34) - 238 61 (74%)
(46) Income tax expense / (credit) (13) 5 - (53) (19) 65%
118 Profit for the period 63 (28) - 185 43 (77%)
(4) Minority Interest (3) 1 - (6) 1 -
114 Net Income (Loss) 60 (28) - 179 44 (76%)
0.37 Basic and diluted EPS (in €) 0.20 (0.09) - 0.59 0.14 (76%)
335 Reported EBITDA 103 54 (48%) 269 162 (40%)
34
2Q 2012 FINANCIAL RESULTSGROUP BALANCE SHEET
IFRS FINANCIAL STATEMENTS FY 1H€ MILLION 2011 2012Non-current assetsTangible and Intangible assets 3,382 3,509Investments in affiliated companies 616 637Other non-current assets 118 125
4,116 4,270Current assetsInventories 1,141 1,025Trade and other receivables 946 937Cash and cash equivalents 985 936
3,072 2,898Total assets 7,189 7,168
Shareholders equity 2,398 2,318Minority interest 132 123Total equity 2,530 2,442
Non- current liabilitiesBorrowings 1,142 406Other non-current liabilities 273 221
1,415 627Current liabilitiesTrade and other payables 1,687 1,604Borrowings 1,532 2,350Other current liabilities 25 146
3,244 4,099Total liabilities 4,659 4,726Total equity and liabilities 7,189 7,168
35
2Q 2012 FINANCIAL RESULTSGROUP CASH FLOW
FY IFRS FINANCIAL STATEMENTS 1H 1H2011 € MILLION 2011 2012
Cash flows from operating activities843 Cash generated from operations (72) 125(43) Income and other taxes paid (11) (3)800 Net cash (used in) / generated from operating activities (82) 122
Cash flows from investing activities(675) Purchase of property, plant and equipment & intangible assets (241) (219)
3 Sale of property, plant and equipment & intangible assets 1 126 Interest received 11 7(1) Investments in associates (0) (1)
(637) Net cash used in investing activities (228) (212)
Cash flows from financing activities(91) Interest paid (40) (27)(88) Dividends paid (3) (2)933 Proceeds from borrowings 574 349
(702) Repayment of borrowings (109) (283)219 Net cash generated from / (used in ) financing activities 423 37
383 Net increase/(decrease) in cash & cash equivalents 112 (53)
596 Cash & cash equivalents at the beginning of the period 596 9855 Exchange losses on cash & cash equivalents 1 3
384 Net increase/(decrease) in cash & cash equivalents 112 (53)985 Cash & cash equivalents at end of the period 709 936
36(*) Calculated as Reported less the Inventory effects and other non-operating items
2Q 2012 FINANCIAL RESULTSSEGMENTAL ANALYSIS
FY 2Q 1H2011 € million, IFRS 2011 2012 ∆% 2011 2012 ∆%
Reported EBITDA251 Refining, Supply & Trading 71 17 -76% 208 110 -47%
54 Marketing 16 20 27% 35 29 -16%
37 Petrochemicals 13 14 3% 31 22 -30%
343 Core Business 100 51 -49% 274 161 -41%
-8 Other (incl. E&P) 3 3 1% -5 2 -
335 Total 103 54 -48% 269 162 -40%
120 Associates (Power & Gas) share attributable to Group 27 17 -36% 70 69 -1%
Adjusted EBITDA (*)259 Refining, Supply & Trading 106 156 46% 150 212 41%
66 Marketing 16 22 40% 35 35 0%
44 Petrochemicals 19 14 -29% 37 22 -41%
368 Core Business 142 191 35% 222 269 21%
-5 Other (incl. E&P) 3 5 53% -5 3 -
363 Total 145 197 35% 217 272 26%
120 Associates (Power & Gas) share attributable to Group 27 17 -36% 70 69 -1%
Adjusted EBIT (*)182 Refining, Supply & Trading 88 132 50% 114 167 47%
1 Marketing 0 7 - 4 5 29%
27 Petrochemicals 15 9 -38% 29 13 -54%
210 Core Business 103 148 44% 146 186 27%
-6 Other (incl. E&P) 3 4 40% -6 2 -
203 Total 106 153 44% 141 188 34%
91 Associates (Power & Gas) share attributable to Group 18 10 -45% 52 54 4%
37
2Q 2012 FINANCIAL RESULTSSEGMENTAL ANALYSIS – II
FY 2Q 1H2011 € million, IFRS 2011 2012 ∆% 2011 2012 ∆%
Volumes (M/T'000)12,528 Refining, Supply & Trading 2,835 3,258 15% 6,178 6,573 6%
5,126 Marketing 1,217 1,102 -9% 2,539 2,263 -11%
314 Petrochemicals 61 95 57% 144 183 27%
17,967 Total - Core Business 4,113 4,455 8% 8,860 9,019 2%
Sales 8,937 Refining, Supply & Trading 2,053 2,497 22% 4,341 5,184 19%
3,953 Marketing 971 957 -1% 1,981 1,960 -1%
340 Petrochemicals 73 102 40% 170 193 13%
13,230 Core Business 3,097 3,556 15% 6,492 7,337 13%
-3,923 Intersegment & other -917 -917 4% -1,893 -1,982 -5%
9,308 Total 2,180 2,639 21% 4,600 5,355 16%
Capital Employed1,376 Refining, Supply & Trading 1,784 1,294 -27%
721 Marketing 720 781 8%
164 Petrochemicals 152 164 8%
2,261 Core Business 2,657 2,238 -16%
1,304 Refinery Upgrades 1,258 1,471 17%
616 Associates (Power & Gas) 590 637 8%
35 Other (incl. E&P) -14 -87 -
4,217 Total 4,554 4,259 -6%
38
Disclaimer
Forward looking statementsHellenic Petroleum do not in general publish forecasts regarding their future financial results. The financial forecasts contained in this document are based on a series of assumptions, which are subject to the occurrence of events that can neither be reasonably foreseen by Hellenic Petroleum, nor are within Hellenic Petroleum's control. The said forecasts represent management's estimates, and should be treated as mere estimates. There is no certainty that the actual financial results of Hellenic Petroleum will be in line with the forecasted ones.
In particular, the actual results may differ (even materially) from the forecasted ones due to, among other reasons, changes in the financial conditions within Greece, fluctuations in the prices of crude oil and oil products in general, as well as fluctuations in foreign currencies rates, international petrochemicals prices, changes in supply and demand and changes of weather conditions. Consequently, it should be stressed that Hellenic Petroleum do not, and could not reasonably be expected to, provide any representation or guarantee, with respect to the creditworthiness of the forecasts.
This presentation also contains certain financial information and key performance indicators which are primarily focused at providing a “business” perspective and as a consequence may not be presented in accordance with International Financial Reporting Standards (IFRS).