TAURON Group’s results presentation Q1 2013

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


100

200

300

400

500

600

700

800

900

559

788


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


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


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

mailto:[email protected]



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



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


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


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


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



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



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


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


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


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


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


Generation from renewable sources – key financial data

33

Increase

Decrease

PLNm


Wolumen sprzedaży - el.

wodne

Wolumen sprzedaży - el.wia-

trowe

Cena sprzedaży certyfikatu

Amortyzacja Pozostałe przychody /

koszty


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


Distribution – key financial data

35

Increase

Decrease

PLNm


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.


koszty


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


Supply – key financial data

37

Increase

Decrease

PLNm


Wolumen sprzedaży

energii elek-trycznej

Cena energii elektrycznej

Cena PM zielonych

Brak PM cz-erwonych i

zółtych

Akcyza Poz. towary, usługi hand-

lowe


koszty


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


Heat – key financial data

39

Increase

Decrease

PLNm


Wolumen dys-trybucji ciepła

Cena sprzedaży ciepła

Marża na certy-fikatach

Koszty stałe bez amortyzacji

Rezerwa na koszty niedoboru

CO2


koszty


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


40

84

104

13 1210 9

0

20

40

60

80

100

120

Q1 2012 Q1 2013


Customer Service – key financial data

41

Increase

Decrease

PLNm


Przychody CUW IT Przychody CUW R Przychody CUW OK

Przychody CUW HR

Koszty świad-czonych usług


koszty


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


42


112104

112

90,1

0

20

40

60

80

100

120

Q1 2012 Q1 2013

Other – key financial data

Documents

TAURON Group’s results presentation Q1 2013