Company presentation
Disclaimer This presentation is for information purposes only and should not be treated as an investment-related advice. This presentation has been prepared by TAURON Polska Energia S.A. (―the Company‖). Neither the Company nor its subsidiaries shall be held responsible for any damage resulting from use of this presentation or a part thereof or from its contents or in any other manner in connection with this presentation. The recipients of this presentation are solely responsible for their analyses and market evaluation as well as evaluation of the Company’s market position and possible results of the Company in the future, made based on information contained herein. This presentation includes forward- looking statements such as ―planned‖, ―anticipated‖, ―estimated‖ and other similar expressions (including their negations). These expressions involve known and unknown risks, uncertainties and other factors that may result in the actual results, financial condition, actions and achievements of the Company and the industry’s results being materially different from any future results, actions or achievements included in the forward-looking statements. Neither the Company nor any of its subsidiaries are obliged to update this presentation or provide any additional information to the recipients of this presentation. 1
Table of contents Section 1 Introduction Section 2 Investment highlights Section 3 Supporting materials 2
Integrated value chain The TAURON Group is the second largest Polish vertically integrated power utility 1 with a strong presence in the entire value chain from coal mining to power supply to end customers Generation & Renewables Distribution Supply Coal mining 1st 20% 2nd One of the two largest electricity of Polish recoverable largest electricity largest electricity suppliers hard coal resources generator in Poland 1 distributor by volume • • • • • 2 hard coal mines 7 hard coal fired 35 hydro 4.1m electricity More than 4.0m electricity power plants power plants distribution customers retail customers • 4.9m tonnes of hard coal • • • extracted in 2009, of 4 hard coal fired 131 MW of Distribution area of • 30.4 TWh of electricity sold 53,000 km 2 , or approx. which 3.4m tonnes (69%) CHPs installed in 2009 was used internally and capacity 17% of Poland • 5.4 GW of installed • Key business customers 1.5m tonnes (31%) was • • capacity 0.4 TWh net 30.9 TWh of electricity – ArcelorMittal Poland sold to third-party generation distributed in 2009 • 18.2 TWh of net customers – from hydro in CMC Zawiercie • generation in 2009 Total RAB after step-up 2009 of which approx. equal to PLN 9.8bn – KGHM Polska Miedź 0.5 TWh was – Kompania Węglowa generated using biomass Notes: All data as of or for the year ended on 31 December 2009 3 1 As measured by installed generation capacity and net energy production
TAURON at a glance Key assets / locations Key operating data (2009) • • 7 hard coal PPs 35 hydroelectric power plants Annual hard coal extraction 4.9 mt • • 4 hard coal CHPs 2 DSOs Hard coal reserves 1 56.1 mt • • 2 hard coal mines 2 supply companies Hard coal resources 1 2,480.0 mt Installed capacity 5.6 GW 18.6 TWh Net electricity generation - of which from renewable sources 0.9 TWh Electricity distribution 30.9 TWh Stalowa Distribution lines 192.4 thou km Wola Electricity sold to end customers 30.4 TWh Customers 4.1m Employees 2 28,824 x4 PP Łagisza Hard coal mines CHP EC Nowa PP Blachownia PP Jaworzno III Hard coal PPs PP Halemba CHP Katowice ZG Sobieski Hard coal CHPs PP Łaziska TAURON Ekoenergia’s hydro PPs PP Siersza CHP EC Tychy Enion Energia’s hydro PPs ZG Janina CHP Bielsko- Biała EnergiaPro distribution business coverage Notes: Enion distribution business coverage 1 According to JORC classification as of 31 December 2009 2 Annual average 4 Data as of or for the year ended on 31 December 2009
Polish market competitors Competitive landscape: key players Distribution Distribution grid Production / sales to End (‘000s km) Generation capacity (GW) (TWh) end customers (TWh) customers (m) 20.9 2 1 5.6 30.9 192 4.1 30.4 3 53.8 Key Polish utilities 12.4 30.7 270 5.0 3 30.0 12.1 3 2.9 16.5 126 2.3 3 16.8 3.5 1.2 20.1 187 2.8 18.1 10.4 2.5 - - na na 14.1 3.2 - - na International players present na on the Polish market 6.2 - - na 1.8 6.5 1.0 1.0 na 27 1.1 na 2.8 - - na 0.6 na na 0.0 na 15 0.9 6.7 Hard coal Lignite Production Sales Hydro Gas & other Notes: All TAURON data is for 2009. All other data, unless stated otherwise, is for 2008 and sourced from ARE and company filings 1 Distribution of electricity by TAURON in 2008 amounted to 32.3 TWh Reflects TAURON’s 2009 gross elecricity production 2 5 3 Reflects 2009 data as per company annual reports
Strategy and investment program Investment program Strategy Mission PLN 28.2bn - planned projects Ensuring energy supply to our clients backed by best • PLN 11.6bn - projects under consideration practice standards as a way to build shareholder value PLN 39.8bn Others 1 0.4 Mining 1.5 2.8 Renewables Ultimate goal 9.7 • Create value added for existing and new shareholders Distribution 11.6 Generation (projects under consideration) Vision PLN 9.0bn • Become one of the leading energy companies in 0.4 0.5 1.1 the region 13.8 Generation 3.1 (planned projects) 3.9 2010 - 2012 2013 - 2020 Strategic objectives Key projects Development of Group’s core activities 1 • Several new build generation projects with the aim to reach approximately 7.9 GW of achievable capacity by 2020 (taking into 2 Improved operational efficiency account the decommissioning of around 1.7 GW) • Modernization and maintenance investments in existing capacities to meet environmental standards and allow biomass co-burning 3 Central management of all areas in the value chain Construction of new wind farms with total capacity of 440 MW by • 2020 Expand sales throughout Poland and in selected 4 Acquisition of the Boleslaw Śmiały coal mine by 2011 year end • international markets (expected 1.6 mt incremental annual coal production) 2 Integrated business model across the value chain Construction / modernization of cross-border distribution lines with • Germany, the Czech Republic and Slovakia Notes: 1 PLN 0.8bn attributable to investments made by the supply and other segments 6 Acquisition of Bolesław Śmiały in exchange for new issue shares 2
Efficiency improvements The TAURON Group aims to continue to improve the efficiency of its operations, primarily through the reduction of operating costs Optimizing labor costs Improve asset usage • Implementation of voluntary redundancy programs and organizational • Integrated planning of electricity generation to ensure the most economically-efficient generation streamlining • Voluntary redundancy program aimed at several hundreds employees will • Further development of biomass co-combustion be launched still in year 2010 in PKE, Enion and EnergiaPro • Synchronized monitoring of assets Reduce financing costs Improve business procedures • Implementation of a centralized financing model • The centralization of fuels procurement • Centralized treasury management including consolidated financial risk • The consolidation of all wholesale electricity trading management • The centralization of business risk management • Introduction of intra-group financing and cash pooling Optimizing procurement and logistics Streamlining of investment decision-making • Centralizing of the fuel procurement • Centrally-coordinated system for undertaking strategic investments • Further streamlining of the TAURON Group’s management and operating processes It is expected that abovementioned actions will improve efficiency of TAURON’s operations and lead to costs reductions of approximately PLN 1 billion over the period 2010-12, mainly in the generation and distribution segments. 7
Recommend
More recommend
