PKN ORLEN Group Strategy 2009 2013 PKN ORLEN Taking pole position Jacek Krawiec, CEO Sawomir Jdrzejczyk, CFO 26 November 2008 1
AGENDA Strategic Directions of PKN ORLEN 2009-2013 Increasing Value in Segments Strategic Financial Targets Supporting Slides 2
Concentration on efficiency strengthening and further development as a fuel of the Companys value growth REFINING RETAIL PETROCHEMICALS Foundation of value creation UPSTREAM ENERGY New segments TELECOMUNICATION CHEMICALS…
Activities strengthening efficiency Operational excellence Focusing on the most profitable investment projects connected with spendings optimization Systematic efficiency improvement based on the best world benchmarks Achieving cost…
allow to take pole position Development of the Development of strategic logistic assets (transport and storage infrastructure) as core business increasing delivery safety and strengthening of competitive advantage Processing of…
AGENDA Strategic Directions of PKN ORLEN 2009-2013 Increasing Value in Segments Strategic Financial Targets Supporting Slides 6
Exploration and production Security of deliveries and competitive advantage with raw materials supplies Infrastructure of raw materials supplies Lithuania PKN ORLEN refinery Possibility of sea delivery Poland Oil pipeline…
Refining and marketing - Refining (1/3) Optimization of product range, volumes increase and costs control Refining assets1) Supersite (Plock) Gold Mazeikiu (10.0; 10.3) Silver (MN, Litvinov) Bronze (Kralupy) Niche Plock…
Refining and marketing - Wholesale (2/3) Maintain leader position Market share Data for 2007 Lithuania 85 % Lithuania Poland 59 % Czech Rep. 30 % Poland Share of Czech companies from Republic PKN ORLEN Group Key…
Refining and marketing - Logistics (3/3) Key element of the Companys competitive advantage Logistics infrastructure Poland: Gdask PKN ORLEN storage depots Silesia/Radzionkw storage depot Pock OLPP storage depots PKN ORLEN…
Retail Fuels sales increase higher than the market Market share Lithuania 5% Lithuania Poland 28% Czech 13% Republic Germany Poland Germany 4% Czech Republic Data for 2007 Key activities Delivery Continuation of…
Petrochemicals (1/2) Increase in production volume and entering new markets Petrochemicals1): Current production capacities Ethylene 1,16 mt/y Propylene 0,73 mt/y Benzene, Toluene, Phenol 0,66 mt/y Polyolefins 2) Poliethylene…
Petrochemicals (2/2) Improvement of efficiency by PLN 200 m, exit from chemical segment Attractiveness of PKN ORLEN products Core business growth drivers PX/PTA Strengthening position High (size, growth, profitability through…
Energy Achieving maximum synergies with refining part is a base for efficiency growth and potential for cooperation with sector partners Business challenges Increase in energy prices caused by the increase in energy raw materials…
AGENDA Strategic Directions of PKN ORLEN 2009-2013 Increasing Value in Segments Strategic Financial Targets Supporting Slides 15
Strategy growth with secured financials Consistent increase of return on capital employed EBITDA1) in accord. with ROACE 2) (%) CAPEX (PLN bn) CAPEX structure 3) LIFO (PLN bn) 12% 11% 4 10 3,3 PLN 12,6 bn 7,8 9% 3 7,0 2,5 7,5 36%…
Creating value in segments Balanced development in all segments EBITDA1) in accord. with LIFO (2013 vs 2007; PLN bn) CAPEX annual average (2009-2013; PLN bn) 5 4,5 EBITDA2) PLN 7,8 bn 1,2 1,0 4 1,0 3 2,7 0,8 2 1,2 2,1 1 1,4…
Efficiency improvement is a key element of the Companys value growth Increase of EBITDA in 2013 by over 30% due to efficiency improvement Influence of efficiency on EBITDA1) Share in EBITDA increase 800 PLN m others 700 sales 600…
Efficiency improvement Operating efficiency of production unit 2007 2013 Change Energy intensity1) index 100 92 -8% Labor intensity 1) index 100 81 -19% Processing index 100 106 + 6% utilization 1) Middle distillates % 43 49…
Debt ratios High free cash flow from 2010 Capex policy Comment Review and rigorously assess rate of return on Acceptable temporary increase in financial gearing in investments that are being realized and planned 2009 due to…
Dividend policy PKN ORLEN strategy 2009-2013 Free cash flow to equity (FCFE) Net profit + amortization To maintain continuity in cash generation and support financial gearing decrease, PKN ORLEN sets its Debt structure dividend…
PKN ORLEN is an attractive investment STRENGTHS DEVELOPMENT OPPORTUNITIES Attractive market of new EU countries with Efficiency improvements through growth potential operational excellence and integration of assets Leading…
AGENDA Strategic Directions of PKN ORLEN 2009-2013 Increasing Value in Segments Strategic Financial Targets Supporting Slides 23
Exploration and production Financial and operational highlights EBITDA1) in acc. with CAPEX structure3) LIFO (PLN, m) ROACE2) (%) CAPEX (PLN, m) 200 30% 200 PLN 0,7 bln 182 15% 25% 23,0% 150 133 20% 17,0% 100 50% 100 15% 75…
Refining and marketing (Refining, Wholesale, Logistics) Financial and operational highlights EBITDA1) in acc. with LIFO ROACE2) (%) CAPEX (PLN, bln) CAPEX structure3) (PLN, bln) 1,5 5 15% 1,3 PLN 5,2 bln 4,5 4,1 1,0 4 12% 11%…
Macroeconomic Assumptions for 2013 Macroeconomic Factor unit 2007 2011E 2013E PKN ORLEN (Group) model refining margin 1) USD / bbl 3,7 3,4 3,6 PKN ORLEN model margin on polyolefins 2) EUR / t 313 252 267 PKN ORLEN model margin on…
Forecast of fuel consumption 2009-2013 Forecasts of fuel consumption and petrochemical products in region Petrol 1) CAGR 1) Forecast for consumption in mt in 2009. Petrol consumption; consumption; CAGR CAGR 1) 0,33% 0,33%…
Supply Routes Diversification Sea Oil Terminals in Gdansk and Butinge Guarantee Alternative Supply Routes Sea terminal [capacity] (70) Primorsk [Ca Kirishi Oil pipeline [capacity] 60 ] Yaroslavi Projected Oil pipeline [Ca 78]…
Thank you for your attention To obtain further information about PKN ORLEN please do not hesitate to contact Investor Relations Department: telephone: + 48 24 365 33 90 fax: + 48 24 365 56 88 e-mail: irorlen.pl www.orlen.pl 32
Loading...
