UNIPETROL FINANCIAL RESULTS 2Q 2016...• 1Q2016 –One-off item ‘Other operating cost incurred in...
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UNIPETROL FINANCIAL RESULTS #Unipetrol @unipetrolcz Andrzej Modrzejewski, CEO Mirosław Kastelik, CFO 21 July 2016 Prague, Czech Republic 2Q 2016 2Q16
Transcript of UNIPETROL FINANCIAL RESULTS 2Q 2016...• 1Q2016 –One-off item ‘Other operating cost incurred in...
UNIPETROL FINANCIAL RESULTS
#Unipetrol
@unipetrolcz
Andrzej Modrzejewski, CEO
Mirosław Kastelik, CFO
21 July 2016
Prague, Czech Republic
2Q 2016
2Q16
2 2Q16
Financial results
21 Back-up
3 Key highlights of
8 Financial and operating results
15 Cash flow and financial position
18 Operational update and outlook
5 Macro environment
TABLE OF CONTENTS
2Q 2016
3 2Q16
Financial results
AGENDA
Back-up
Operational update and outlook
Cash flow and financial position
Financial and operating results
Macro environment
Key highlights of 2Q 2016
4 2Q16
Financial results
-2.2
2Q16
3.1
1Q16
3.6
2Q15
5.3
Refining model margin
(USD/bbl)
877871 884
+6
2Q16 1Q16 2Q15
Petrochemical model margin
(EUR/t)
External macro
environment
Operational
performance
Value creation &
financial position
-46%
2Q16
998
1Q16
1,429
2Q15
1,845
Processed crude
(kt)
+4%
2Q16
1,515
1Q16
1,538
2Q15
1,457
Refining sales incl. retail
(kt)
350
2Q15
3,959
+16%
2Q16
4,582
1Q16
EBITDA LIFO
(CZK m)
2Q16
-3,648
1Q16
-6,648
2Q15
-9,589
-3,000
Net debt/(net cash)
(CZK m)
► Czech GDP growth remained at solid level of 2.7% y/y in 1Q16,
a slight decline to 2.2% is expected in 2Q16
► Crude oil price declined by 27% y/y to 46 USD/bbl
► Refining model margin decreased by 41% y/y to 3.1 USD/bbl
► Petrochemical model margin further increased by 1% y/y to 877
EUR/t
► Low crude oil price level continued to support external macro
environment, especially petrochemical margins
► Steam cracker unit out of operation and Kralupy refinery
shutdown since mid-May materially impacted operational
performance (processed crude volume and sales volumes)*
► Refining utilization ratio declined from 95% to 46% y/y as a result
of not operating steam cracker unit, Kralupy refinery shutdown
from mid-May and turnaround of Litvínov chemical complex
executed in March and April
► Refining sales volumes slightly increased by 4% y/y to 1,515 kt
► Benzina further increased its market share to 16.8%
► Dividend in amount of CZK 5.52 per share was approved by the
General meeting
► EBITDA LIFO increased by 16% y/y to CZK 4.6 bn due to received
payments for steam cracker accident insurance claim of CZK 3.9 bn
► Strong net cash position of CZK 6.6 bn with corresponding negative
level of financial gearing at the level (-) 18.0%
► Unipetrol commenced the construction of new polyethylene unit PE3
at the beginning of June
► Unipetrol acquired 100% share capital of Spolana
► Contracts for Russian Export Blend Crude Oil (REBCO) were
concluded securing deliveries till 30 June 2019
* Note: For more information on steam cracker and Kralupy refinery refer to slide 19.
KEY HIGHLIGHTS OF 2Q16
5 2Q16
Financial results
AGENDA
Operational update and outlook
Cash flow and financial position
Financial and operating results
Macro environment
Key highlights of 2Q 2016
Back-up
6 2Q16
Financial results
Czech GDP growth remained at solid level of 2.7% y/y in 1Q16
GDP dynamics (quarterly data, y/y)
Source: OECD, Bloomberg
Confidence in the Czech economy (monthly data)
Source: Czech Statistical Office
FX (monthly data)
Source: Czech National Bank
0
1
2
3
4
5
1Q17
E
1.6
2.4
4Q16
E
1.6
2.3
3Q16
E
1.6
2.2
2Q16
E
1.5
2.2
1Q16
1.7
2.7
4Q15
1.7
4.3
3Q15
1.6
4.2
2Q15
1.6
5.0
1Q15
1.3
3.9
4Q14
1.0
1.4
3Q14
0.8
2.3
2Q17
E
2.8
1.6
94
104
60
70
80
90
100
110
120
2016 2015 2014 2013 2012
Consumer confidence
Business confidence
16
18
20
22
24
26
28
2016 2015 2014 2013 2012
27.06
24.10
CZK/USD
CZK/EUR
June
June
Eurozone
Czech Republic
► Czech GDP growth remained at solid level of 2.7% y/y in 1Q16, a
slight decrease to 2.2% is expected in 2Q16
► Slight decrease in both business and consumer confidence in the
Czech economy in 2Q16, however both indicators still on relatively
high levels
► CZK stable against EUR, slightly above ČNB’s target of 27 CZK/EUR;
slight appreciation against USD to 24.1 CZK/USD in June; eurodollar
relatively stable around 1.1 USD/EUR
► Diesel consumption increased by 3.8% y/y, gasoline consumption
slightly decreased in the Czech Republic (mt)*:
GENERAL MACRO ENVIRONMENT
2Q16
1.178
2Q15
1.135
+3.8% -0.7%
2Q16
0.411
2Q15
0.414
Diesel Gasoline
* Own estimates based on available data from the Czech Statistical Office.
7 2Q16
Financial results
Crude oil price further dropped y/y which continued to support petrochemical margins
Brent crude oil price (quarterly average)
USD/bbl
Refining model margin and Brent-Ural differential
USD/bbl
Combined petrochemical model margin
EUR/t
34
4450
102
110108109110
102
113110110
119
109113
46
62
30
40
50
60
70
80
90
100
110
120
130
-27%
2Q16 4Q15 2Q15
54
4Q14
76
2Q14 4Q13 2Q13 4Q12 2Q12
108
4Q11
0
1
2
3
+1.1 USD/bbl
2Q16
2.6 2.6
4Q15
2.7
1.5
2Q15
1.5 1.7
4Q14
1.5 1.8
2Q14
2.2
1.4
4Q13
1.5
0.2
2Q13
0.7
1.7
4Q12
1.1 0.7
2Q12
2.1
1.3
4Q11
0.3 0.7
0
2
4
6
-2.2 USD/bbl
3.1 3.6 4.2
5.8 5.3 5.5
2.2 2.5
0.5 0.2 0.5 0.2
1.4 1.9
4.3 5.1
2.5 2.0
0.6 0.9
Refining model margin
Brent-Ural differential
800
700
300
600
500
400
1,000
900
200
100
0
871
611
4Q14
714 661
2Q14
627 648
838 884
4Q15
943
+1%
2Q16
877
2Q15 4Q13
605 615
2Q13
631 631
4Q12
609 554
2Q12
617
514
4Q11
476 543
Polyolefin
Olefin ► Crude oil price increased by 33% q/q to 46 USD/bbl; however
decreased by 27% y/y
► Brent-Ural differential increased by 74% y/y to 2.6 USD/bbl
► Refining model margin decreased by 41% y/y to 3.1 USD/bbl
► Petrochemical model margin increased by 1% y/y to 877 EUR/t
► Low crude oil price level continued to support external macro
environment, especially petrochemical margins
DOWNSTREAM MACRO ENVIRONMENT
8 2Q16
Financial results
AGENDA
Operational update and outlook
Cash flow and financial position
Financial and operating results
Macro environment
Key highlights of 2Q 2016
Back-up
9 2Q16
Financial results
Revenues
EBITDA LIFO
EBITDA
EBIT
Net profit/loss
CZK m
350
+893
4,582 3,690
559
-38
4,260 4,298
103
-28
3,774 3,802
-25
+128
2,978 3,106
Higher EBITDA LIFO by CZK 0.9 bn due to received payments from insurance
► Revenues decreased by 37% y/y due to lower crude oil
prices and lower petrochemical products sales
► EBITDA LIFO of CZK 4,582 m higher by CZK 893 m y/y due
to received payments of CZK 3.9 bn from insurance claim
► Estimated lost business profit for 2Q16 resulting from
steam cracker accident expected to be recovered from
insurer amounts to CZK 1.3 bn (not included in financial
results)
► Estimated lost profit, due to Kralupy refinery shutdown in
2Q16 amounts to approximately CZK 0.3 bn (not included in
financial results)
► LIFO effect negative of CZK 322 m
► Depreciation and amortization of CZK 486 m
► EBIT of CZK 3,774 m in 2Q16
► Positive result from financial operations of CZK 88 m
► Net profit of CZK 3,106 m in 2Q16
• 2Q2015, 6M2015 – Gain on acquisition (Eni’s stake in Česká rafinérská) of CZK -429 m, Provision for removal of old
ecological burdens of CZK 110 m, related deferred tax of CZK -30 m, Corporate function provision of CZK 50 m.
• 1Q2016 – One-off item ‘Other operating cost incurred in connection with the fire of steam cracker of CZK 99 m’ excluded as
compared to 1Q2016 financial results presentation.
-37%
20,551 17,686
32,523
FINANCIAL RESULTS
2Q2016 1Q2016 2Q2015 6M2016 6M2015
-32%
38,237 56,498
-1,869
4,933 6,801
-2,376
4,819 7,195
-2,351
3,877
6,228
-1,892
4,973
3,081
10 2Q16
Financial results
Change in segment results y/y
CZK m
Increase in operating profitability due to received payments from insurance
► Downstream segment (combination of refining and
petrochemicals) EBITDA LIFO reached the level of CZK 4,398 m
mainly due to the received payments for steam cracker accident
claim of CZK 3.9 bn
► Retail segment with positive contribution of CZK 174 m
4,582
Corporate functions
4,398 11 174
2Q16
EBITDA LIFO
Downstream Retail
Segment results – EBITDA LIFO
CZK m
49082
Downstream
51
Retail 2Q16
EBITDA
LIFO
4,582
Corporate
functions
3,959
2Q15
EBITDA
LIFO
► Increase in operating profitability y/y by CZK 623 m…
► …driven by downstream segment with increase of CZK 490 m
y/y caused mainly due to the received payments for steam
cracker accident claim of CZK 3.9 bn
► Retail segment increased by CZK 51 m y/y
OPERATING PROFITABILITY BY SEGMENTS
11 2Q16
Financial results
Downstream segment results – Drivers of change y/y
CZK m
EBITDA LIFO increased to CZK 4.4 bn due received payments from insurance
2Q16
EBITDA LIFO
4,398
Other**
4,746
Volumes
-3,395
Macro
-861
2Q15
EBITDA LIFO
3,908
EBITDA LIFO quarterly – Adjusted*
CZK m
448122106
531384
875941
38
4,500
2,500
4,000
3,500
3,000
2,000
1,500
1,000
500
0
-500
-1,000
2Q16
4,398
132
4Q15
665
3,360
2Q15
3,589
2,986
4Q14
2,330
2,080
2Q14
854
4Q13 2Q13 4Q12 2Q12
1,225
-78
4Q11
-887
EBITDA LIFO quarterly – Adjusted* - w/o impairment in 2011, 2012 and 2Q14, gain on acquisition in 1Q14 and 2Q15,
provision for removal of old ecological burdens in 2Q15 and one-offs related to steam cracker accident in 3Q15, 4Q15.
Other**– incl. received payments for steam cracker accident claim of CZK 3.9 bn
► Negative macro impact of CZK (-) 861 m y/y driven by lower
refining margins partially compensated by lower crude oil
prices
► Negative volumes impact of CZK (-) 3,395 m y/y driven by:
Significantly lower petrochemical sales volumes due to
steam cracker accident and executed turnaround of Litvínov
chemical complex
Partially compensated by higher refining sales volumes due
to sales of petrochemical feedstock and trading activities
–
DOWNSTREAM – EBITDA LIFO
+ ► Positive impact of Other category of CZK 4,746 m y/y mainly
driven by:
received payments from insurance
inventory revaluation effect (NRV)
12 2Q16
Financial results
Increase in refining sales volumes by 4% y/y
Processed crude and refining utilization ratio
kt, %
998
2Q16
46%
1Q16
66%
1,429
4Q15
72%
1,568
3Q15
85%
1,840
2Q15
95%
1,845
Distillation yields
2Q16
9%
50%
33%
1Q16
6%
46%
38%
4Q15
7%
48%
36%
3Q15
9%
47%
35%
2Q15
10%
46%
34%
Heavy
Middle
Light
► Sales volumes increase by 4% y/y to 1.5 mt driven by:
Significant increase in trading of fuels due to lower refinery utilization
resulting from shutdown of steam cracker and Kralupy refinery
Sales of steam cracker feedstock
► Much lower level of processed crude of 1 mt compared to 2Q15 due to
Kralupy refinery and steam cracker unit shutdown and turnaround of
Litvínov chemical complex executed in March and April
► Consequently, refining utilization ratio declined from 95% to 46% y/y
► Lower yields of light distillates due to shutdown of Kralupy refinery
914
762
836816
737775892866
751842
896
1,800
1,600
1,400
1,200
1,000
800
600
400
1,055
4Q14
1,050
1,174
2Q14
1,130
4Q13 2Q13 4Q12 2Q12 4Q11
+4%
2Q16
1,515
1,538
4Q15
1,609
1,679
2Q15
1,457
Sales volumes of refining products, incl. retail (Benzina network)
kt
DOWNSTREAM (REFINING) – OPERATIONAL DATA
13 2Q16
Financial results
Petrochemical operations materially impacted by production limitations
193225
332
446
439449440420
366
403
453466440
387387
183
442445
389411
43
150
200
250
300
350
400
450
500 -49%
2Q16
227
4Q15 2Q15 4Q14 2Q14 4Q13 2Q13 4Q12 2Q12 4Q11
Sales volumes of petrochemical products
kt
Steam-cracker utilization ratio
2Q16
0%
1Q16
0%
4Q15
0%
3Q15
37%
2Q15
89%
► Petrochemical operations materially impacted by steam cracker
accident on 13 August 2015 and executed turnaround of Litvínov
chemical complex
Steam cracker unit out of operation
Sales volumes declined by 49% to 227 kt, partially
compensated by Spolana sales
3731
49
2232
59
37
73
21
79-49%
-73%
2Q16 1Q16 4Q15 3Q15 2Q15 2Q16 1Q16 4Q15 3Q15 2Q15
Sales volumes of polyethylene and polypropylene
kt Polyethylene Polypropylene
DOWNSTREAM (PETROCHEMICALS) – OPERATIONAL DATA
Spolana’s
sales
volumes
14 2Q16
Financial results
Continuation of a good profitability with EBITDA LIFO of CZK 174 m
EBITDA LIFO quarterly
CZK m
174
283
316
145
210
110
220
173147
0
50
100
150
200
250
300
350
2Q16
201
4Q15
288
2Q15
123 134
4Q14
169
2Q14
120 100
4Q13 2Q13
43
4Q12
76
2Q12
151
4Q11
146
Retail segment results – Drivers of change y/y
CZK m
Benzina market share
+ ► Positive fuel margin impact of CZK 7 m y/y resulting from
higher margin on gasoline
► Positive fuel sales volumes impact of CZK 37 m y/y thanks to
set of marketing activities and solid dynamics of Czech GDP
► Positive impact of non-fuel sales of CZK 17 m y/y driven by
expansion of StopCafe concept and various promotions
► Further increase in Benzina market share to 16.8% at the end
of April 2016
April 2016* – last available official statistical data.
13
14
15
16
17
April
2016*
16.8%
16.3%
4Q15
16.1%
15.6%
2Q15
15.4%
15.3%
4Q14
15.2%
14.9%
2Q14
14.8% 14.7%
4Q13
14.5%
14.5%
2Q13
14.1%
13.7%
4Q12
13.6%
13.6%
2Q12
13.5% 13.6%
4Q11
13.8%
13.9%
17
37
174
123
2Q16
EBITDA
LIFO
Other
-11
Non-fuel
sales
Fuel sales
volumes
Fuel
margins
7
2Q15
EBITDA
LIFO
RETAIL SEGMENT
15 2Q16
Financial results
AGENDA
Operational update and outlook
Cash flow and financial position
Financial and operating results
Macro environment
Key highlights of 2Q 2016
Back-up
16 2Q16
Financial results
Extensive CAPEX spending of CZK 3.8 bn
Free cash flow (FCF) reconciliation
CZK m
Net working capital (NWC)
CZK bn
2Q16
4.0
22.3
12.8
13.5
1Q16
1.6
18.5
9.6
10.5
4Q15
5.9
15.7
10.4
11.3
3Q15
7.2
16.2
11.4
12.0
2Q15
10.8
18.3
13.2
15.9
► Operating cash flow of CZK 380 m
► Free cash flow negative of CZK (-) 2.6 bn due to extensive
CAPEX spendings (executed turnaround of Litvínov
chemical complex, reconstruction of steam cracker unit,
and construction of PE3)
► NWC increased by CZK 2.4 bn q/q mainly due to
increased level of crude oil inventory
380
-33
LIFO effect
322
2Q16
EBITDA LIFO
4,582
2Q16
Free cash
flow (FCF)
-2,621
Other
investing CF
829
CAPEX
-3,830
2Q16
Operating
cash flow
NWC increase
-3,881
2Q16
Operating
cash flow
before ∆ NWC
4,261
Other
operating CF
-611
Tax paid
NWC
Receivables
Payables
Inventories
CASH FLOW & NET WORKING CAPITAL
17 2Q16
Financial results
Strong net cash position of CZK 6.6 bn at the end of 2Q16
Net debt/(net cash)* change
CZK m
Net debt/(net cash)*, financial gearing & Net debt/EBITDA LIFO**
CZK bn, %
2Q16
-6.6
1Q16
-9.6
4Q15
-5.9
3Q15
-6.9
2Q15
-3.0
► Net cash position at the level of CZK 6.6 bn at the end
2Q16…
► …corresponding negative level of financial gearing at
the level (-) 18.0%.
► Net debt/EBITDA LIFO indicator at (-) 0.7
-18.0% -27.4%
-16.7% -19.8%
-9.0%
• Net debt/(net cash)* – includes cash pool liabilities.
• Net debt/EBITDA LIFO** – 4-quarter trailing adjusted EBITDA LIFO.
2Q16
Net debt /
(net cash)
-6,648
Other
102
CAPEX
3,830
NWC increase
3,881
Tax paid
33
LIFO effect
-322
2Q16
EBITDA LIFO
-4,582
1Q16
Net debt /
(net cash)
-9,589
-0.7 -1.1
-0.5 -0.5 -0.3
Net debt/(net cash)
Financial gearing
Net debt/EBITDA LIFO
FINANCIAL GEARING
18 2Q16
Financial results
AGENDA
Operational update and outlook
Cash flow and financial position
Financial and operating results
Macro environment
Key highlights of 2Q 2016
Back-up
19 2Q16
Financial results
Steam cracker unit update
► Mechanical completion was finished on 8 furnaces, remaining
commissioning work will be finished by the end of August.
► The steam cracker unit will be restarted at 8 out of 10 furnaces at the end
of August 2016. Full capacity is expected to be reached at the end of
October 2016.
► Unipetrol is insured against both property & mechanical damages and
business interruption. Based on the estimates made at the end of June
2016 cost of repair are at the level of CZK 4.1 bn and lost business profit
at the level of CZK 6.6 bn, both amounts expected to be recovered from
the insurer.
OPERATIONAL UPDATE AND OUTLOOK
Kralupy refinery shutdown update
► Based on the latest estimation the Kralupy refinery will be re-started at
the beginning of October 2016.
► Estimated lost business profit, due to Kralupy refinery shutdown in 2Q16
amounts to approximately CZK 0.3 bn.
► Cost of repair estimated at the level of CZK 0.4 bn.
Acquisition of Spolana
► The main focus will be on utilizing and developing of synergies with
Unipetrol (access to feedstock with favorable logistics costs due to
geographical proximity of the companies), and competitiveness of
Spolana's product portfolio on the market.
► Finalizing optimization of the most important project portfolio to
achieve the best possible return on investment
► After start-up of the steam cracker unit stable supplies of ethylene will
be delivered which will contribute to improvement of Spolana and
Unipetrol Group results.
For more information contact Investor Relations Department:
Robert Pecha
Investor Relations Manager
Phone: +420 225 001 425
Email: [email protected]
Kateřina Smolová
IR Specialist
Phone: +420 225 001 488
Email: [email protected]
www.unipetrol.cz
Thank you for your attention THANK YOU
21 2Q16
Financial results
AGENDA
Back-up
Operational update and outlook
Cash flow and financial position
Financial and operating results
Macro environment
Key highlights of 2Q 2016
22 2Q16
Financial results
Revenues
EBITDA LIFO
EBITDA
EBIT
Net profit/loss
CZK m
-37%
20,551 17,686
32,523
350
+624
4,582 3,959
559
-307
4,260 4,567
103
-297
3,774 4,071
-25
-171
3,106 3,277
FINANCIAL RESULTS – REPORTED NUMBERS
2Q2016 1Q2016 2Q2015
-2,191
3,081
5,272
-32%
38,237 56,498
-2,138
4,933 7,070
-2,645
4,819 7,464
-2,620
3,877
6,497
6M2016 6M2015
23 2Q16
Financial results
Detailed breakdown
EBITDA & EBIT – REPORTED NUMBERS
CZK m 1Q 2015 2Q 2015 3Q 2015 4Q 2015 1Q 2016 2Q 2016 6M 2015 6M 2016
EBITDA LIFO 3 111 3 959 3 002 807 350 4 582 7 070 4 933
EBITDA 2 897 4 567 2 470 708 559 4 260 7 464 4 819
EBIT LIFO 2 640 3 463 2 506 342 -106 4 096 6 103 3 991
EBIT 2 426 4 071 1 975 243 103 3 774 6 497 3 877
EBITDA LIFO 2 986 3 908 2 719 553 132 4 398 6 894 4 530
EBITDA 2 772 4 516 2 188 454 341 4 075 7 288 4 417
EBIT LIFO 2 602 3 502 2 314 181 -234 4 002 6 104 3 768
EBIT 2 388 4 110 1 783 82 -25 3 680 6 497 3 654
EBITDA LIFO 134 123 283 288 201 174 257 375
EBITDA 134 123 283 288 201 174 257 375
EBIT LIFO 54 41 200 204 125 96 96 221
EBIT 54 41 200 204 125 96 96 221
EBITDA -9 -71 0 -33 16 11 -81 26
EBIT -16 -80 -7 -42 3 -2 -96 2
Group
Downstream
Retail
Corporate functions
24 2Q16
Financial results
Explanation of key indicators
► Refining margin = revenues from products sold (96% Products = Gasoline 17%, Naphtha 20%, JET 2%, Diesel 40%, Sulphur Fuel Oils 9%, LPG 3%,
Other feedstock 5%) minus costs (100% input = Brent Dated); product prices according to quotations.
► Conversion capacity of Unipetrol’s refineries = Conversion capacity till 2Q2012 was 5.1 mt/y (Česká rafinérská – Kralupy 1.642 mt/y, Česká rafinérská
– Litvínov 2.813 mt/y, Paramo 0.675 mt/y). From 3Q2012 till 4Q2013 conversion capacity was 4.5 mt/y, i.e. only Česká rafinérská refineries conversion
capacity, adjusted for 51.22% shareholding of Unipetrol, after discontinuation of crude oil processing in Paramo refinery (Česká rafinérská – Kralupy 1.642
mt/y, Česká rafinérská – Litvínov 2.813 mt/y). From 1Q2014 till 1Q2015 conversion capacity was 5.9 mt/y after completion of acquisition of Shell’s 16.335%
stake in Česká rafinérská, corresponding to Unipetrol’s total stake of 67.555% (Česká rafinérská – Kralupy 2.166 mt/y, Česká rafinérská – Litvínov 3.710
mt/y). In 2Q15 conversion capacity increased to 7.8 mt/y driven by operation of Eni’s 32.445% stake in Česká rafinérská from May. From 3Q15 conversion
capacity is 100% of Česká rafinérská, i.e. 8.7 mt/y (Česká rafinérská – Kralupy 3.206 mt/y, Česká rafinérská – Litvínov 5.492 mt/y).
► Light distillates = LPG, gasoline, naphtha
► Middle distillates = JET, diesel, light heating oil
► Heavy distillates = fuel oils, bitumen
► Petrochemical olefin margin = revenues from products sold (100% Products = 40% Ethylene + 20% Propylene + 20% Benzene + 20% Naphtha) minus
costs (100% Naphtha); product prices according to quotations.
► Petrochemical polyolefin margin = revenues from products sold (100% Products = 60% Polyethylene/HDPE + 40% Polypropylene) minus costs (100%
input = 60% Ethylene + 40% Propylene); product prices according to quotations.
► Free cash flow (FCF) = sum of operating and investing cash flow
► Net working capital (NWC) = inventories + trade and other receivables – trade and other liabilities
► Net debt = non-current loans, borrowings and debt securities + current loans, borrowings and debt securities + cash pool liabilities – cash and cash
equivalents
► Financial gearing = net debt / (total equity – hedging reserve)
DICTIONARY
25 2Q16
Financial results
The following types of statements:
Projections of revenues, income, earnings per share, capital expenditures, dividends, capital structure or other financial items; Statements of plans
or objectives for future operations; Expectations or plans of future economic performance; and Statements of assumptions underlying the
foregoing types of statements are "forward-looking statements", and words such as "anticipate", "believe", "estimate", "intend", "may", "will",
"expect", "plan“, “target” and "project" and similar expressions as they relate to Unipetrol, its business segments, brands, or the management of
each are intended to identify such forward looking statements. Although Unipetrol believes the expectations contained in such forward-looking
statements are reasonable at the time of this presentation, the Company can give no assurance that such expectations will prove correct. Any
forward-looking statements in this presentation are based only on the current beliefs and assumptions of our management and information
available to us. A variety of factors, many of which are beyond Unipetrol’s control, affect our operations, performance, business strategy and
results and could cause the actual results, performance or achievements of Unipetrol to be materially different from any future results,
performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among
others, from: (a) changes in general economic and business conditions (including margin developments in major business areas); (b) price
fluctuations in crude oil and refinery products; (c) changes in demand for the Unipetrol’s products and services; (d) currency fluctuations; (e) loss
of market and industry competition; (f) environmental and physical risks; (g) the introduction of competing products or technologies by other
companies; (h) lack of acceptance of new products or services by customers targeted by Unipetrol; (i) changes in business strategy; (j) as well as
various other factors. Unipetrol does not intend or assume any obligation to update or revise these forward-looking statements in light of
developments which differ from those anticipated. Readers of this presentation and related materials on our website should not place undue
reliance on forward-looking statements.
DISCLAIMER
