powerpoint presentation€¦ · (1) includes other activities (exploration and production) which...

Company updateJune 2019

Contents

• Company and Business Overview

• Investment Highlights

• Balance Sheet & Cash flows

• Financials

• Appendix

2

3

Montenegro

Serbia

Bulgaria

Greece

Cyprus

RNM

Elefsina

Aspropyrgos

Thessaloniki

OKTA

OPERATIONAL FOOTPRINT

Marketing

Storage Terminal

Refinery

536639

548

101

107

93

100

95

100

-6

20172016

834

-7 -10

2018

731 731

Petrochemicals

Other (1)

Refining, Supply & Trading

Marketing

ADJUSTED EBITDA (€M) 2016 - 2018

Company overviewSoutheast Europe’s leading downstream Group with presence along the Energy Value Chain

(1) Includes other activities (exploration and production) which was -€10m in 2018, -€7m in 2017 and -€6m in 2016

Paneuropean Oil and Industrial Holdings

S.A.

Hellenic Republic Asset Development

Fund

Free Float

45.5% 35.5% 19%

HELLENIC PETROLEUM OWNERSHIP STRUCTURE

Other1

Business overviewDiversified integrated energy portfolio around highly complex refining business

Key Business Units

4

Marketing

Domestic: > 30% market share across retail, commercial, aviation and bunkering. Total sales volume c.3.9m MT, 1,739 service stations through marketing subsidiary (EKO and BP brand)

International: 306 service stations across Cyprus, Montenegro, Serbia, Bulgaria and Republic of North Macedonia; Total sales volume c.1.1m MT

Petrochemicals

240kt of polypropylene (PP) capacity vertically integrated with HELPE’s refineries

>50% of domestic petrochemicals market share, 65% of sales exported

E&P/Power and Gas

E&P: Exploration portfolio of eight E&P licences with another one subject to negotiation

Power: 810 MW CCGT generation and retail, 300MW renewables pipeline

Gas: Gas supply / distribution / retail


3 refineries, 15.5m MT of production in 2018

65% market share in Greece, 50-60% of sales exported

Extensive logistics platform with strategic positioning for crude supply and regional demand centers

5

Refining, Supply & TradingIntegrated High-Complexity Regional Refining Hub, with supply advantage and strong domestic and export market positioning

Source: HELPE Analysis1 SRAR – Straight Run Atmospheric Residue. 2 VGO – Vacuum Gas Oil. 3 UCO – unconverted oil. 4 As calculated by HELPE.

INTEGRATED REFINING PLATFORM

Interconnected regional platform of three complex refiningassets:

– Elefsina: fit-for-purpose configuration, with no residue / FO output

– Aspropyrgos: large, high-complexity site with optimised operations

– Thessaloniki: covering the supply needs of Northern Greece and South Balkans, complementing HELPE refining system

– Coastal location, refining flexibility and configuration, relationships with NOCs and traders for crude supply and processing optimisation

– Logistics infrastructure providing significant competitive advantage in domestic market and exports throughout the region

Aspropyrgos

106kbpd

Thessaloniki

NCI4: 12.0

Elefsina

SRAR1 & VGO2 for

upgrading;666 KT

SRAR1 & VGO2 for

upgrading;241 KT

90kbpd

NCI4: 5.8

CCRVDU

148kbpd3

NCI4: 9.7

MHUFCC

Naphtha for reforming and blending;

360 KTUCO3 for conversion:

155 KT

HCFXK

COMPETITIVE SUPPLY & TRADING

6

Fuels MarketingLeading domestic market position and regional footprint increasing vertical integration

HELPE Group Subsidiaries:3.9m MT

Aviation

C&I and Other

Bunkering

C&I, Aviation & Bunkering

Retail

Retail

CoMo220 sites

CoDo61 sites

DoDo25 sites

CoMo232 sites

CoDo / DoDo1,507 sites

Source: HELPE – number of petrol stations end of 2018

~20% of international market

volumes sourced from 3rd parties

RefiningSupply &Trading

Domestic Market

International Market

HELPE Group Subsidiaries:1.9m MT

Market Share 30-40%

16.5m MT

370 269

389

105

Propane Propylene Polypropylene BOPP

PetrochemicalsOperations centered on utilising refining assets for higher value extraction; trading geared to export markets

7(1) as of FY17Source: Platts, Company information

Production and marketing of Polypropylene (PP), BOPP Film, polymers and solvents through the further processing of refinery production

Margin contribution by product (€/T)(1)

Vertical integration

80-85% of total production integrated using propylene produced at Aspropyrgos

Best-in-class Polypropylene production technology

Lyondell Basell’s Spheripol technology

Competitive advantages

Geographical diversification

65-70% of sales exported to Turkey, Italy, Iberia and Eastern Med, used as raw materials in a number of applications in manufacturing and other industries

Strong domestic market share

Domestic market share in petchems > 50% in all products, produced or traded

Low exposure to refining margins

PP margins largely unrelated to refining margins

Domestic andInternational market

Aspropyrgossplitter

ThessalonikiPP plant (240 kt)

PPPropane PropyleneBOPP

BOPP filmplant (26 kt)

c.90%

c.10%80-85%

Imports 15-20%

Petrochemicals value chain

8

BLOCKS TYPE OWNERSHIP STATUS

Patraikos Gulf● Offshore

● Lease● HELPE* (50%)

● Edison (50%)● Leads and prospects mapped with 3D

seismic

● One committed exploration drilling until Apr-2020)

Sea of Thrace Concession

● Offshore● Concession

● HELPE (25%)

● Carfrac (75%)● Prospective exploration area surrounding

the Prinos oilfield and Kavala gas field

NW Peloponnese

● Onshore


● G&G exploration and environmental studies

Arta- Preveza ● Onshore


Block 2

(Offshore W.Greece)

● Offshore

● Lease● Total* (50%)

● HELPE (25%)

● Edison (25%)

Block 10 (Offshore W. Greece)

● Offshore

● Lease● HELPE* (100%) ● Lease agreement signed

Block 1

(Offshore W. Greece)

● Offshore

● Lease● HELPE* (100%) ● Submitted bids

Ionian Block (Offshore W. Greece)

● Offshore

● Lease● Repsol* (50%)

● HELPE (50%)● Lease agreement signed

West of Crete

SouthWestCrete Blocks

● Offshore

● Lease● Total* (40%)

● Exxonmobil (40%)

● HELPE (20%)

● Lease agreement finalized

Exploration & ProductionDiversified Offshore and Onshore Portfolio in Greece with experienced partners

* Indicates Operatorship

OPERATIONAL FOOTPRINT

1

2

3

4

5

6

8

9A

9B

7

E&P

Licensed areas (HELPE)

Areas where HELPE has been declared as selected applicant and/or under negotiation

5

2

1

3

6

4

7

8

9B

9A

Power – ELPEDISON and RenewablesSecond largest IPP in Greece; development of a renewable energy portfolio

Consolidated as Associate9

Elpedison B.V., a 50/50 JV between HELLENIC PETROLEUM and Edison Italy’s 2nd largest electricity producer and gas distributor (part of EdF Group)

Owns 76% of 810MW of installed CCGT capacity: a 390MW plant in Thessaloniki and a 420MW in Thisvi

Increasing power trading & marketing, considering credit exposure; growing independent supplier with 3.5% market share

Energy market in Greece under restructuring; new regulatory framework (EU Target Model) expected in 2020

Renewables portfolio target > 300MW (wind, PV, biomass), with 26MW in operation

ELPEDISON OVERVIEW

2022 TARGET

Balanced RES portfolio with substantial installed capacity

Low risk (market & volume) energy activities

300MW installed

EBITDA >€30m

RENEWABLES 5 YEAR PLAN

2018 – 2022 Capex: €260m

• Installed capacity • 26 MW

• Financial • EBITDA ≈ €3m

• 300MW licensed

/ under

development

*2012 Adjusted for settlement with PPC; 2015 adjusted for settlement with BOTAS; 2016 adjusted from previous year bad debt provisions and one-off items, 2018 adjusted for DESFA and Zenith sales impact, while EBITDA includes associates

Consolidated as Associate 10

Natural Gas – DEPA GroupGas: 35% Participation in DEPA, Greece’s Incumbent Gas Company

DEPA currently in restructuring process, ahead of its privatization; 2 separate entities, DEPA Commercial and DEPA Infrastructure will be formed

DEPA Commercial (competitive business) will include:

– Gas Supply & Wholesale business:

o Main Greek importer of pipeline natural gas and LNG, through long-term contracts

o c.150 industrial customers and various SME clients

– Gas Retail business through its wholly-owned subsidiary EPA Attikis

• DEPA Infrastructure (regulated business) will include:

– Gas Distribution business: network covering more than 5,000 km in Attica, Thessaloniki/Thessaly (EDAs) and Rest of Greece (DEDA)

– International projects (Interconnectors with Bulgaria, Italy; East Med Pipeline)

• HELPE will own 35% in each entity

OVERVIEW OF DEPA GREEK GAS MARKET DEMAND AND DEPA MARKET SHARE (BCM)

DEPA VOLUMES (BCM)

2,8 2,51,5 1,7

2,6 3,1 2,9

1,31,2

1,2 1,3

1,21,6 1,7

20152012 2013 2014

3,8

2016

3,7

4,7

2017 2018

4,1

2,8 3,0

4,6

Retail & Industry Power Generation

69%95% 89%95% 96% 86%

58%

2,6 2,51,5 1,5

2,6 2,4 1,9

1,4 1,0

1,1 1,0

0,8 0,70,7

0,50,7

2013

0,00,2

2012 2018

0,1

20172014

2,8

0,2

3,7

2015

0,3

2016

3,93,7

2,8

3,73,3

Auctions & Other Retail & Industry Power Generation

---DEPA Market Share % (w/o Auctions)

(€M) DEPA GROUP

2012 2013 2014 2015 2016 2017 2018

Revenue 1,882 1,553 1,088 939 885 1,142 931

EBITDA* 201 196 144 94 227 237 219

Earnings After Tax* 133 147 83 33 131 133 99

NI Share to ELPE* 37 60 30 23 36 46 35

ELPE Book Value 551 598 590 598 631 659 348

11

On 20 December 2018 the sale of 66% of DESFA’s share capital (31% for HRADF and 35% for HELPE S.A.) to “SENFLUGA

Energy Infrastructure Holdings S.A.”, a JV of Snam S.p.A, Enagás Internacional S.L.U. and Fluxys S.A. was successfully

completed for a total cash consideration of €535m

Receipt of cash consideration of €284m

(HELPE share) reflected in FY18 Group

financial statements:

• Proceeds recorded as dividend; Investments in Associates reduced by the

carrying value of 35% of DESFA (€329m)

• P&L affected by the €45m impairment and a deferred tax liability on future

sale of DEPA of €47m

• Investing cash inflows of €284m

AGM approved an one-off amount of €76m (€0.25/share) to be distributed as part of the final dividend; remaining to be

applied for debt reduction

DESFA saleSuccessful exit from gas transmission business, in line with Group strategy for monetizing non core assets and balance sheet deleverage

Transaction Overview

Financial Statements impact

Use of Proceeds

12

Source: HELPE analysis1 Adjusted EBITDA – Capex2 (Adjusted EBITDA – Capex) / Adjusted EBITDA

FREE CASH FLOW1 (€M) AND CASH CONVERSION2 (%)

ADJUSTED EBITDA (€M)

Strong Financial PerformanceStrong performance post investment plan and transformation, consistent with industry dynamics

Cash Conversion

758 731834

730

201720162015 2018

Benchmark Margin ($/bbl)

5.9 5.04.5 4.5

1.11 1.11 1.13 1.18€ / $

593 605 625572

2015 2016 2017 2018

78% 83% 75% 78%

Strategy UpdateInvest in core business and renewables; relaunch competitiveness improvement initiatives

13

STRATEGY TARGETS

Integrate and realise benefit of investments Capture positive refining cycles

IMO readiness

Vertical integration

Revisit route-to-market models

Digital & Energy Transformation

Debottlenecking conversion units and margin growth

Procurement optimization / cost to serve

Additional EBITDA €100-150m

Gas & Power restructuring

E&P opportunities in Greece

Develop renewables portfolio

Business model and balance sheet de-risking

Reduce cost of funding

Rebalance market position and de-risk business model

Continue competitiveness improvement

Manage business portfolio and develop selective growth areas

Strengthen financial position

1

2

3

4

5

New strategy - key profitability growth leversRefocus on competitiveness improvement initiatives, new growth platform, as well as IMO implementation to provide significant EBITDA uplift*

14

IMO impact2018 Baseline Competitiveness 2020+ subject to prevailing market

environment

0.7bln

Growth E&P cash calls

>1bln

• Digital Transformation

• Energy efficiency• Procurement

optimisation

• Develop Renewables

• Conversion units debottlenecking / margin improvement

€300-400m Capex

Adjusted EBITDA expected evolution* (€bn)

(*) Projections based on 2018 market conditions except for IMO impact on product cracks and crude spreads; excludes IFRS 16 impact

15

IMO / MARPOL bunkering regulationGlobal change in bunkering fuel from 2020, key next milestone for refining industry

Expected impact on refining industry

• High level of compliance anticipated

• 2-3.5 mbpd (>20% of global HSFO demand) to be

displaced

• MGO and VLSFO expected to cover shortfall

• Scrubber technology to support market normalisation

in medium term

• Key issues

– Crude grades supply & differentials

– Middle distillates, VLSFO availability and cracks

– HSFO supply / disposal and pricing

– Scrubber adoption & reliability

1,16 1,16

1,31

2,36

3,69

0,03

1,693,81

0,00

2018

0,10

2020 (70% compliance)

0,33

0,13

2020 (full compliance)

5,155,31 5,31

Distillate

HSFO & LSFO LNG*

VLSFO

Estimated bunkering fuel evolution(mbpd)

(*) Volume of oil substituted by LNGSource: Wood Mackenzie

67%

96%

0%4%

Feed

33%

0%

Output

HS & MS crude

LS crude

LS IMO crude

HELPE IMO Refining model overviewPlanned switch to IMO crude grades to reduce cracked HSFO production at Aspropyrgos; testing of new operating mode already in process ahead of new bunkering fuel specs implementation

ELEFSINA THESSALONIKI** ASPROPYRGOS

(*) Includes Bitumen(**) others include intermediates – SRFO, VGO and others(***) Assuming normal operations

2018

2020***

Feed

21%

0%

38%

100%

0%

41%

0%0%

Output

5%

74%

31%

21%

34%

Feed

11%

24%0%

Output

62%

16%

4%

9%

22%

13%

46%

Feed

28%

Output

Feedstock Production

LPG/Naphtha/Others

Mogas

MD

FO IMO

FO HS*

16

0%

33%

100%

Feed

0%

67%

0%0%

Output

41%

0%

100%

21%

Output

0%

Feed

38%

0%0%

• 2018 margins impacted by supply developments (US production, Iran sanctions snapback) and demand

growth evolution, as well as diesel recovery

• Key drivers for Med margins in 2019:

– Regional and global supply trends: sanctions, OPEC supply, changing global supply mix

– Global refinery capacity evolution / utilisation

– Slowing demand growth

– IMO / MARPOL implementation

Recent Industry developmentsEuropean refining environment driven mainly by supply dynamics; IMO / MARPOL bunkering regulation key next milestone for refining industry

Med complex margins - $/bbl

17(*) Data updated as of May 2019

0

1

2

3

4

5

6

7

8

4Q152Q13 4Q181Q13 1Q143Q13 4Q13 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q161Q16 2Q16 3Q16 1Q17 3Q172Q17 4Q17 1Q18 2Q18 3Q18 1Q19 2Q19

FCC

Hydrocracking

2.4 3.3 6.4 5.0 5.9 5.0 3.1

$/bblMed FCC margins:

Contents




• Financials

• Appendix

18

Advantaged Eastern Location and Market Positioning

Recently Upgraded, High Complexity and Well-Operated Refining and Petchem Assets

Extensive Logistics Platform Enhancing Flexibility and Competitiveness

Integrated and Diversified Business Model

Key Investment Highlights

19

Source: Wood Mackenzie, company filings

CRUDE IMPORTS INTO EUROPE BY SOURCE (KBPD)

Location advantage offers wide range of crude supply opportunities captured through flexible and complex refining operations

COMMENTARY

Sufficient supply combined with flexibility allows to capture market opportunities and netback uplift

Structurally Advantaged Eastern Mediterranean Location

20

Americas

Alg

eri

a

Egyp

t

Lib

ya

Eastern Med supply diversity

Assets strategically located for exports in diesel-short Med region complementing a leading domestic business

21

Domestic market shares

Refining(16m MT of capacity)

Marketing(3.9m MT of sales)

HELLENIC PETROLEUM

60% - 65%

Other

HELLENIC PETROLEUM

>30%

Other

Exports sales (MT ‘000)

2.377

4.501

5.518

6.5896.941

8.6448.384

9.395

2011 2012 2013 2014 2015 2016 2017 2018

% of total sales

21% 36% 44% 49% 49% 56% 52% 57%

-604

-867

-1.117 -1.097-1.036

2015 20302020 2025 2035

Diesel/Gasoil

Supply/Demand (kbpd)

Projected Diesel Balances in Med

Middle distillates exports c. 50%

High complexity interconnected refining system and logistics assetsDiversified, complex and interconnected asset base, with crude flexibility, high value output and wholesale margin capacity support over-performance margin

Group refinery footprint and operating model

22* SRAR (Straight Run Atmospheric Residue) and VGO (Vacuum Gas Oil) are intermediate products

60%

40%

2018

Sour Sweet

Urals9%

Iraq29%

CPC18%

Libya7%

Egypt5%

Iran11%

S. Arabia6%

Other crude & feedstock15%

12%

51%

22%

5%

10%

1H18Naphta/OtherLPGGasolineMiddle DistillatesFO

Crude slate FY18 (%) Product yield FY18 (%)

Aspropyrgos

148kbpd

90kbpd

Elefsina

106kbpd

Naphtha for reforming SRAR 1 &

VGO 1 for upgrading

Naphtha for reforming

Thessaloniki

SRAR¹ and VGO1 for

upgrading

MHUFCC

HCFXK

CCRVDU

NCI3: 9.7NCI3: 12.0

NCI3: 5.8

System Complexity: NCI3 9.3

HELPE realized margin* - ($/bbl)

23

10,2

8,6 8,3

10,9 10,9 10,6 10,3 10,1 9,910,6

12,1

10,29,3

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19

HELPE system benchmark (on feed)

* System benchmark calculated using actual crude feed weights. Includes wholesale trading premia and propylene contribution which is reported under Petchems

Drivers of HELPE realized margin

High complexity interconnected refining system and logistics assetsConsistent over-performance vs benchmark refining margins through cycle

Commercial / wholesale trading premia

– Superior logistics and trading capabilities offer competitive market positioning

Efficient refining operations

– High availability, improved yield performance, density escalation and synergies of integrated refining system

Crude slate optimisation

– Significant flexibility to outperform benchmark via alternative crude sourcing through facilitated by favourable geographical positioning and complex system configuration, enabling capturing of market opportunities

2

1

3

Bulgaria

Serbia

1 Includes values for Kalohori Terminal (Thessaloniki Refinery) and Megara Terminal (Aspropyrgos Refinery)

FuelTerminals

LPG Bottling Plants

Airport Depot & into Plane Facilities Refinery

REFINERIES1

Storage Capacity (mm³) 6.9

LOGISTICS ASSETS

3 coastal refineries with sea access, pipelines and truck and rail loading facilities

Natural gas supply to all refineries via dedicated pipelines

Pipeline connectivity between Aspropyrgos and Elefsina refineries, storage facilities, major offtakers’ facilities, Athens airport, army facilities, etc.

STORAGE CAPACITY

TOTAL

Storage Capacity (mm³ / # tanks) 8.0

Elefsina

Aspropyrgos

Thessaloniki

Cyprus

Montenegro

Pipeline

FYROM

MARKETING

Storage Capacity (mm³) 1.1

Domestic 0.4

International 0.7

Extensive Logistics Platform Enhancing Flexibility and CompetitivenessSignificant storage capacity, pipeline connectivity and ability to source key profitable markets support competitive positioning and gross margin maximization

24

25

Integrated business model overview and economicsDownstream value chain integration yields improved returns vs Platt’s reference pricing and increases earnings stability

REFINING TRADING MARKETING

PETCHEMS

(Benchmark Pricing Plus Premia)

Domestic and internationalMarkets (PP + BOPP – 240kt)

SUPPLY

(Platt’s + Sales Premia)

Strong Export Orientation

Platt’s

(Med Benchmark + Overperformance)Crude Supply

Flexibility

Highly Complex Asset

Base

High Value Product Yield2

HELPERefining System

16m MTNCI: 9.3

Exports, 3rd Parties

Domestic 4.0m MT

Platt’s

High Value Networks

Marketing 1.2m MT

International

Wholesale 0.7m MT

1 Normalised operations based on current configuration. Note: schematic excludes gas, power, renewables, engineering and shipping operations

11%

89%

High sulphur

Low sulphur

53%

12%

23%

12%

Other Middle Distillates

Fuel OilGasoline 8.0m MT

1.5m MT

Exports, Intra-group

2.7m MT

Aviation & Bunkering

Domestic Market4.5m MT

100

355

182

93

548

730

75%

730

Retail Petrochemicals Wholesalesupply,

logistics andoverperformance

Non-refiningmargin derived

EBITDA

Refining EBITDAat $4.5/bbl

2018 Adj. EBITDA

Diversified business model limits exposure to cyclical refining margins

2018 Adj. EBITDA breakdown (€m)

26

Source: Company informationNote: The above is not intended to be representative of future performance

No / low dependency on gross refining margin

Key industry macro drivers for Group EBITDA €m

• Illustrative EBITDA impact from change in benchmark margin

or exchange rate

• Based on normal operations throughput of 110-120mmbbl

and 2018 price environment

-$1.0/bbl

-10c. FX EUR/USD (70)

(100)

70

100 +$1.0/bbl

+10c. FX EUR/USD

Contents




• Financials

• Appendix

27

Credit facilities - LiquidityNet debt and gearing at target levels; financing cost reduction continues, with further opportunities in 2019-20; 2019 Eurobond to be repaid out of existing cash balances

28

Financing Costs (€m)

2014 2017

43%

2015

40%

2016

45%

38%

2018

39%

Gearing ratio*

*Net Debt/Capital Employed ** As of 11/06/2019

215201 201

165146

2017 201820152014 2016

-32%

HELPE Bond (Mid YTM %)

35%20222019 20232020 2021

1Q19 Maturity Profile (€m)

35%

EIB Debt Capital MarketsBanks

To be repaid out of existing cash balances

Eurobond €325m @ 5¼%: c. €17m

ELPEGA 47/8% 2021 EUR450m

1,5

2,0

2,5

3,0

3,5

4,0

4,5

5,0

1/1/20181/1/2017 1/7/2017 1/7/2018 1/1/2019

1,85**

29

Dividend policyImproved operating cash flows and reduced interest costs support dividend yield

EPS and DPS 2016-2018 (€/share)

• AGM approved a final dividend of €0.25/share, as well as an extraordinary distribution of €0.25/share out ofDESFA sale proceeds, taking FY18 DPS to €0.75/share (FY17: €0.4/share)

€0.25/share special distribution (DESFAtransaction)

0.5

0,75

2018

1,15

2016

0,87

2017

1,08

0,20

1,22

0,40

0,97

0,70

Clean EPS Reported EPS DPS

Cash Flow ProfilePost upgrade cashflows support balance sheet improvement and increased returns with reduced risk profile

Free cash flow – pro forma at mid-cycle economics excl. working capital movements (€m)

EBITDA (pro-forma run rate)

Cash flow for deleverage and

distribution

Capex Interest Tax

Benchmark margins & EUR/USD driven

(150-200)

(100-150)

200-350

600-850

(60-140)

30

Contents




• Financials

• Appendix

31

Key financials

(*) Calculated as Reported less the Inventory effects and other non-operating items32

€ million, IFRS 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19

Income Statement

Sales Volume (MT’000) - Refining 14,502 12,528 12,796 12,696 13,538 14,258 15,618 16,069 16,490 3,551

Net Sales 8,477 9,308 10,469 9,674 9,478 7,303 6,680 7,995 9,769 1,991

Segmental EBITDA

- Refining, Supply & Trading 338 259 345 57 253 561 536 639 548 80

- Petrochemicals 50 44 47 57 81 93 100 95 100 25

- Marketing 114 66 53 68 90 107 101 107 93 20

- Other (incl. E&P) -28 -6 0 -5 -7 -2 -6 -7 -10 -3

Adjusted EBITDA * 474 363 444 178 417 758 731 834 730 123

Adjusted associates’ share of profit 30 67 69 57 28 22 29 31 35 18

Adjusted Net Income * 213 140 229 -120 2 268 265 372 296 37

Balance Sheet / Cash Flow

Capital Employed 4,191 4,217 4,350 3,905 2,870 2,913 3,903 4,173 3,854 3,971

Net Debt 1,659 1,687 1,855 1,689 1,140 1,122 1,759 1,800 1,459 1,522

Capital Expenditure (incl. refinery upgrades)

709 675 521 112 136 165 126 209 158 31

1Q19 HIGHLIGHTSGood performance despite weaker environment

33

• Refining margins deteriorated q-o-q and y-o-y

– Med complex benchmark refining margins at the lowest level in 4.5 years

– Tighter crude availability on supply logistics issues and geopolitical developments leading to negative B-U spread

– Higher demand in Greek domestic market due to heating gasoil

• 1Q19 Adj. EBITDA at €123m (-18%)

– Reduced refineries utilization due to certain units maintenance shut-downs in 1Q19

– Overperformance sustained at high levels, partly offsetting weaker benchmarks

– Strong US$ supported 1Q19 results

– New IFRS 16 positive impact of €9m on Adj. EBITDA (mostly Marketing) included in 2019 accounts

• Adj. Net Income at €37m (-40%) with 1Q19 IFRS NI at €47m; further decline in financing costs

– IFRS Reported results supported by crude oil price recovery; inventory valuation gains in 1Q at €19m

– Like-for-like financing costs further reduced by 16% (excl. IFRS16 impact)

– Increased Elpedison profitability drives higher Associates contribution; DESFA no longer included in Group results

• Balance sheet improved vs 1Q18

– Net Debt at €1.5bn and gearing at 38%

– Plan to fully repay €325m Eurobond, which matures on 4 July 2019, out of own cash reserves

FY LTM € million, IFRS 1Q

2018 1Q 2018 2019 Δ%

Income Statement

16,490 15,939 Sales Volume (MT'000) - Refining 4,102 3,551 -13%

4,955 5,009 Sales Volume (MT'000) - Marketing 1,046 1,100 5%

9,769 9,592 Net Sales 2,168 1,991 -8%

Segmental EBITDA

548 515 - Refining, Supply & Trading 113 80 -29%

100 99 - Petrochemicals 26 25 -4%

93 99 - Marketing 14 20 46%

-10 -9 - Other -4 -3 30%

730 703 Adjusted EBITDA * 149 123 -18%

35 39 Share of operating profit of associates ** 14 18 30%

567 536 Adjusted EBIT * (including Associates) 116 84 -27%

-146 -142 Financing costs - net -39 -35 10%

296 271 Adjusted Net Income * 62 37 -40%

711 681 IFRS Reported EBITDA 166 135 -18%

215 187 IFRS Reported Net Income 74 47 -37%

Balance Sheet / Cash Flow

3,854 Capital Employed 4,419 3,971 -10%

1,459 Net Debt (excl. IFRS16 leases) 1,973 1,522 -23%

38% Net Debt / Capital Employed 45% 38% -

158 163 Capital Expenditure 27 31 17%

1Q19 Group key financials

Note: 2019 results incorporate IFRS 16 impact

(*) Calculated as Reported less the Inventory effects for R,S&T and other non-operating items

(**) Includes 35% share of operating profit of DEPA Group adjusted for one-off items

Net Debt (€m)

Adj. EBITDA (€m)

Refining sales volumes (m MT)

3.6

1Q191Q18

4.1-13%

149123

1Q191Q18

-18%

1Q18

1,522

1Q19

1,973-23%

Domestic market environmentColder weather drives heating oil consumption and domestic market higher y-o-y; bunkering volumes up due to higher international marine offtake

(*) Does not include PPC and armed forces

Source: Ministry of Environment and Energy

-5%

-

517 492

568 569

465 560

181189

1Q19

HGO

1Q18

1,810

LPG & Others

Diesel

MOGAS

1,732

+5%

+4%

+20%

116 120

111 114

495596

1Q18

Bunkers FO

1Q19

Aviation

Bunkers Gasoil

721

831+15%

+3%

+4%

Domestic Market demand* (MT ‘000)

Aviation & Bunkers demand (MT ‘000)

4Q2Q 3Q

1,525 1,494 1,604 1,588

1,934 1,878-2% -1%

-3%

812965

2Q

1,051

4Q3Q

1,109

1,336 1,378+6%

+3%

+19%

2017 2018

2017 2018

+21%

1,810

1Q

1,731

2019

+5%

721831

1Q

2019

+15%

35

-3-3

113

80

26

25

13

914

20

21

8

1Q18 BenchmarkRefining Margins

FX New IFRS16 Asset utilisation /Ops + Crudedifferentials

Others 1Q19

149

123

Refining, S&T

MK

Chems

Refining, S&T

MK

Chems

Other(incl. E&P)

Environment Performance

Other(incl. E&P)

Causal track & segmental results overview 1Q191Q19 profitability affected by weaker macro and refinery production slow down due to maintenance turnarounds

Adjusted EBITDA causal track 1Q19 vs 1Q18 (€m)

20

Partial refining maintenance

outages

500kT

36

Contents

• Company and Business overview



• Financials

• Appendix

37

38

Key Milestones

A Long Journey of Transforming Greek State-Owned Companies into to a Modern Regional Energy Group

Source: HELPE1 POIH: Paneuropean Oil and Industrial Holdings

Transformation progress completed with c.€300m

cash benefits p.a.

PETROLAElefsinaRefinery)

PETROLA(ElefsinaRefinery)

DEP & DEPEKY

(Greek E&P)

DEP & DEPEKY

(Greek E&P)

ELDA(Aspropyrgos

Refinery)

ELDA(Aspropyrgos

Refinery)

ESSO -PAPPAS

(ThessalonikiRefinery)

ESSO -PAPPAS

(ThessalonikiRefinery)

19981960 –1998

2003 2007 2009 2011 2012 2014 2018

Listing of new Group in

ASE/LSE

POIH becomes strategic investor

with 25% stake

Elpedison: 50/50 JV with Italy’s

Edison, in Power

Merger with PetrolaHellas

Acquisition of BP’sGround Fuels business

in Greece

Thessaloniki Refinery upgrade completed

ElefsinaRefinery upgrade

completed

DESFA stake sold for €284m;

DEPA M&A restructuring

Shareholding Events

2019

DEPA restructuringin view

of privatisation

Controlling Shareholders’ Agreement Supported Successful Transition from State to Private Sector Group

Board of Directors:

• Consists of 13 members (3 executive and 10 non-executive, 2 independent)

• Appointed as per Articles of Association (7 appointed by Hellenic Republic, 2 appointed by POIH, 2 elected by employees, 2 elected by free float Shareholders special general meeting)

• Board Committees

– Audit, Remuneration & Succession Planning, Oil Supply, Labour Matters, Financial and Economic Planning

Corporate Governance & Shareholding Structure

CORPORATE GOVERNANCE SHAREHOLDING STRUCTURE

45,5%

8,0%

35,5%

6,0%5,0%

International InstitutionsPOIH

HRADF

Retail

Greek Institutions

39

Summary Group Structure1

Power Generation & Trading

Gas & Power associates

HELLENIC PETROLEUM S.A.

EKO S.A. HPI AG

HP SERBIA

HP BULGARIA

HP CYPRUS

JP

ELPET VALKANIKI

ELPEDISON B.V2

HPF plc (funding)

Domestic Marketing International Marketing

DEPA Group(Gas supply,

distribution & retail)

50%

AsprofosS.A.

(Engineering Services)

DIAXON S.A.

(Petchems –BOPP)

35%

VARDAX

OKTA

Others

80%

82%

(1) All companies 100% owned unless otherwise noted

(2) 45% owned through HPI

(3) Dormant co under HP 40

HP Consulting

Global3

(Albania)

EKOTA KO

SAFCO

49%

33%

KALYPSO

Shipping companies

•EKO-ATHINA•EKO-

ARTEMIS•EKO-

DIMITRA•EKO-

AFRODITI•EKO-IRA

HELPE E&PHOLDING

ELPE UPSTREAM

(OPCO)

ELPE PATRAIKOS (50% EDISON)

Exploration & Production

Asset Companies

Block 2 (50% Total, 25%

Edison)

RENEWABLE ENERGY

SOURCES

ELPE LARCO KOKKINOU

ELPE LARCO SERVION

51%

51%

Renewables

ENERGEIAKI PYLOU

METHONIS

Shipping Companies•HP

Apollon•HP

Poseidon

ELPEDISON S.A.75%

ATEN ENERGEIAKI

SA

HELPE ARTA -PREVESA

HELPE PELOPONNISOS

Sea of Thrace (75% Calfrac)

25%

25%

50%

-7 -10

639548

95

100

64

107

93

86

5110

22

FY17 BenchmarkRefining Margins

FX Cost of CO2emissions deficit

Asset utilisation /Ops + Supplyoptimisation

Others FY18

Causal track & Segmental results overview FY18Improved operational performance and supply optimization partly offset weaker refining backdrop

41

730

834

Refining, S&T

MK

Chems

Refining, S&T

MK

Chems

Other(incl. E&P)

Environment Performance

Other(incl. E&P)

Adjusted EBITDA causal track FY18 vs FY17 (€m)

-147 +42

Cash flow profile FY18Strong operational cash flows and DESFA disposal accelerate balance sheet deleverage

1.800

1.459711

293

174

280 284

Capex & acquisitions

Net Debt FY 17

24

Dividends from associates

Change in working capital

EBITDA Interest, Tax & Dividends

DESFA sale

69

Other Movements

Net Debt FY18

Group Cash flow and Net debt evolution FY18 (€m)

42

- -- -- -

Net Debt / EBITDA* 1.9x

* Includes associates contribution

Assets overviewCore business around downstream assets with activities across the energy value chain

DESCRIPTION METRICS

• Portfolio of exploration assets in Greece

• Exploration rights in 5 areas

• 4 more areas in advanced award process stages

• Complex (recently upgraded) refining system:– Aspropyrgos (FCC, 148kbpd)– Elefsina (HDC, 106kbpd)– Thessaloniki (HS, 90kbpd)

• Pipeline fed refinery/terminal in Northern Macedonia

• Capacity: 16m MT• NCI: 9.3• Market share: 65%• Tankage: 6.9m M3

• Basel technology PP production (integrated with refining) and trading

• > 60% exports in the Med basin• Capacity (PP): 240 kt

• Leading position in all market channels (Retail, Commercial, Aviation, Bunkering) through EKO and BP networks

• 1,739 petrol stations• >30% market share• Sales volumes: 4m MT

• Strong position in Cyprus, Montenegro, Serbia, Bulgaria, Northern Macedonia

• Advantage on supply chain/vertical integration

• 306 petrol stations• Sales volumes: 1.1m MT

• ELPEDISON: JV with Edison/EdF • Capacity: 810 MW

• DEPA/DESFA GROUP: 35% in Greece’s incumbent NatGas supply company (DESFA sold in December 2018)

• Volumes (2018): 3.3bcm

• Renewables (Wind, PV), targeting >300MW • 26MW operating


Exploration & Production

DomesticMarketing

InternationalMarketing

Petrochemicals

Power & Gas

43

Greek petroleum market overview and route to marketLeading domestic market position through vertical integration and competitive logistics assets

0-10%Independent marketing

companies: 4m MT (30%)

3rd party exports: 8m MT

HELPE Group subsidiaries:

1-2MT

19%

24%

10%10%

23%

9%

Fuel OilOthers

5%

Greek market product breakdown

Specialty markets (PPC, public sector):

1.5m MT (15%)

Gasoline

Diesel

GasoilJet

Bunkers

44

30-35%

HELPE exports: 9.5m MT Domestic market: 11.5m MT

60-65%

Greek Refining capacity: 25m MT

3rd

party Imports

Retail C&I (Construction

wholesale)

Aviation & Bunkering


1.5m MT


4m MT (30%)

MOH Group subsidiaries:

2.5m MT (25%)

16m MT

968 969

807817 886 837

808

2015 2016 2017 2018

1,172

2,552

LPG & Others

2,538

2,458

DIESEL

MOGAS

HGO

6,662

2,420

1,389

7,043

2,345

7,091

2014

2,524

6,9066,691

2,364 2,427

1,199

2,294

2,619

+6% -1% -2% -3%

Domestic market environmentMarginal increase in auto-fuels demand, with consistent substitution of gasoline from diesel; heating gasoil consumption drives headline

45

(*) Does not include PPC and armed forces

Source: Ministry of Environment and Energy

Domestic Market demand* (MT ‘000)

-2%

+3%

-17%

-4%

’17-’18

Key Diesel / Gasoil balances in the Med region, kb/d (2020)

Source: KBC Advanced Technologies, Company information.46

Diesel / Gasoil surplus (2020) Diesel / Gasoil deficit (2020)

Portugal Spain

Morocco Algeria

France

ItalyCroatia

Bosnia

Serbia

NM

Albania

Greece

Turkey

Cyprus

Syria

Lebanon

Libya

-51

-114 -69

-441 -35

-11-13

-12

-18-3

-260

-11 +49

Israel+6

-162

Egypt

Slovenia

+79

+73

+23

-8

+20

-37

Tunisia

-4 Montenegro

Glossary of Key Terms

47

Adjusted EBITDA Reported EBITDA adjusted by inventory effect (impact of the fluctuation of crude prices on BS inventories and on the value of

products sold during the related period) and other one-off non recurring items

ADO Auto Diesel Oil

BOPP Biaxially Oriented Polypropylene

CCR Continuous Catalytic Reforming

CCGT Combined Cycle Gas Turbine

COMO Company Owned Manager Operated

CPC Caspian Pipeline Consortium

DCM Debt Capital Markets

DODO Dealer Owner Dealer Operated

FCC Fluid Catalytic Cracking

HDC Hydrocracking

HGO Heating Gasoil

HS Hydroskimming

HSFO High Sulfur Fuel Oil

IMO International Maritime Organization

IPP Independent Power Producer

LNG Liquefied Natural Gas

LPG Liquid Petroleum Gas

LSFO Low Sulphur Fuel Oil

MOGAS Motor Gasoline

NatGas Natural Gas

Nelson Complexity Index (NCI) Index assessing the refinery conversion capacity by relating each processing unit capacity against the crude distillation capacity and

applying a weighting factor.

NOC National oil Companies

POIH Paneuropean Oil and Industrial Holdings

PP Polypropylene

Solomon Complexity Index Compares the relative refining configuration apart from throughput capacity. It is the total of EDC (Equivalent Distillation Capacity)

divided by the sum of the crude unit stream-day capacities.

SRAR Straight Run Atmospheric Residue

ULSD Ultra-low-sulphur Diesel

VDU Vacuum Distillation Unit

VGO Vacuum Gas Oil

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).

48

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