9th Annual Greek Roadshow
September 2014
1 1
Contents
• Introduction – Group Overview
• Strategy update
• Industry & market developments
• Strategic business units (SBUs)
• Appendix
2 2
Group’s Profile
• Leading SEE independent downstream Group, with investments in Power & Gas
– €10b Turnover with 14 MT of product sales, with strong export orientation (50% exports)
– Leading Greek market position covering c. 60-65% of local wholesale market fuels demand
– Regional footprint through subsidiaries; coastal refineries provide supply chain advantage
• Completed strategic investment plan, with positive cash flow impact
– A €2bn investment plan delivering €150-200m of incremental cash flows at mid-cycle
margins; no material capex requirements
– Significant upside potential on recovery of refining margins and Greek market
• Successfully implemented a transformational competitiveness improvement
plan on Group structure and operational model
– Transformation initiatives added c.€310m annual benefits with additional opportunities of
€100m over the next 18 months
• Consistent delivery of strategic targets; improving balance sheet
– Achievement of strategic targets, despite Greek crisis & industry challenges
– Completion of capex cycle allows deleveraging from current high gearing
– Opportunities for value monetisation (DESFA sale process)
Complex refining asset base and leading domestic market share; Group
positioned to benefit from Greek market recovery and refining industry upturn
3
• Complex refineries (Nelson index 9.6)
• Balanced sales channel mix with exports at
50% of total sales
• Leading market position with c.60-65% of
Greek wholesale domestic market and
c.30% of retail
• Regional footprint with international
subsidiaries
• 30% of capital employed in non-refining
margin driven returns (Marketing,
Petchems, Power and NatGas)
Nelson/Solomon complexity benchmark margins
Group operational footprint
ROMANIA
TURKEY
BULGARIA
SERBIA
CYPRUS
FYROM
GREECE
ALBANIA
BOSNIA
MONTENEGRO
Refining
Marketing
Power & Gas
9.711.3
6.98.8
13.9
5.0
Aspropygros Elefsina Thessaloniki
NCI Solomon
5* -3* 4*
*$/bbl, average 2010-13
Shareholding & Governance Controlling shareholders’ agreement supported long-term strategy and successful transition
from state to private sector, divestment of remaining 35% held by the Greek State announced
as part of the privatisation
4
Shareholding structure
35%
9%
7% 6%
8%
36%
Greek State
Retail
7% Int’l institutionals
GR institutionals
POIH 43%
Corporate Governance
Board of Directors:
• Consists of 13 members (3 executive and
10 non executive) appointed as per
Articles of Association
• Board Committees (Finance / Audit / HR)
Executive Committee:
• Key management executives with
responsibility for strategy and operations
Management structure:
• SBU structure ensures focus on key
business issues
• Regional portfolio controlled centrally
Assets overview Core business around downstream assets with activities across the energy value chain
DESCRIPTION METRICS
• Exploration assets in Egypt, Greece, Montenegro
• Recently upgraded refining asset base:
– Aspropyrgos (FCC, 148kbpd)
– Elefsina (HDC, 100kbpd)
– Thessaloniki (HS, 93kbpd)
• Pipeline fed refinery/terminal in FYROM
• Capacity: 16MT
• NCI: 9.6
• Market share: 65%
• Tankage: 7m M3
• Leading position in all market channels (Retail,
Commercial, Aviation, Bunkering) through EKO and
HF (BP branded network)
• c.1,800 petrol stations
• 30% market share
• Sales volumes: 3MT
• Strong positions in Cyprus, Montenegro, Serbia,
Bulgaria
• Advantage on supply chain/vertical integration
• c.280 petrol stations
• Sales volumes: 1MT
• Basel technology PP production (integrated with
refining) and trading
• > 50% exports in Iberia, Italy & Turkey
• Capacity (PP): 220 kt
• ELPEDISON: Second largest IPP in Greece (JV
with Edison/EdF)
• Capacity: 810 MW
(CCGT)
• DEPA GROUP: 35% in Greece’s incumbent
NatGas supply company (under privatisation)
• Volumes (2013):
3.8bcm
5
Refining, Supply & Trading
Exploration & Production
Domestic Marketing
International Marketing
Petrochemicals
Power & Gas
Our Group in numbers – key financials (FY13)
6
€ million, IFRS 2009 2010 2011 2012 2013 1H14
Income Statement
Sales Volume (MT) - Refining 15,885 14,502 12,528 12,796 12,696 5,977
Net Sales 7,424 8,477 9,308 10,469 9,674 4,462
Segmental EBITDA
- Refining, Supply & Trading 269 338 259 345 57 34
- Marketing 92 114 66 53 68 33
- Petrochemicals 20 50 44 47 57 36
- Other (incl. E&P) -19 -28 -6 0 -5 -3
Adjusted EBITDA * 362 474 363 444 178 100
Adjusted associates’ share of profit 18 30 67 69 57 24
Adjusted Net Income * 150 205 137 232 -117 -72
Balance Sheet / Cash Flow
Capital Employed 3,927 4,191 4,217 4,350 3,905 3,751
Net Debt 1,419 1,659 1,687 1,855 1,689 1,625
Capital Expenditure Incl. Refinery upgrade
program 614 709 675 521 112 61
Free Cash flow -561 17 165 25 404 185
(*) Calculated as Reported less the Inventory effects and other non-operating items
7 7
Contents
• Introduction – Group Overview
• Strategy update
• Industry & market developments
• Strategic business units (SBUs)
• Appendix
2007-12 Strategy review Delivery of strategic targets despite prolonged crisis; new refinery amongst most
competitive in the Med
8
1
2
5
Upgrade Refining Assets
Manage Portfolio for value
Fit-for-purpose
organisation
3
Enhance vertical integration
4 Improve competitiveness
• Completed new Elefsina refinery and Thessaloniki
upgrades successfully
• €150-200m additional cashflow opportunity (benchmark
margin driven)
• Doubled domestic market share - BP network
• Increased benefit of regional integration
• Refocus E&P
• Power generation portfolio JV
• Refining improvements (DIAS)
• Marketing competitiveness
• Procurement (BEST 80)
• Cost structure
• Reduced headcount by 21% by 2012
• Established Group culture
• Shared services
9
2013-2017 Strategy Update Refocuses on operational excellence; maximise cash flows to deleverage
1
2
5
Consolidate market position
leveraging on new asset base
Develop our people and continue to
build culture of excellence
3 Enhance competitiveness
improvement momentum
4 Leverage business portfolio
Realise full benefit of the new
investment 1
2 Deleverage Group
3 Diversify funding mix
4 Reduce funding costs
Improve profitability
BUSINESS TARGETS FINANCIAL TARGETS
* Assuming mid cycle margins
Recent results reflect new refinery start-up process and record low margins. Company
performance rebased post investments and competitiveness improvements; further
upside from Greek economy and margin recovery
178
400-700
50-60
70-10020-30
40-60
2013 Elefsina
optimisation
Performance
Improvement
Greek market 2014 runrate Performance Margins and
FX*
Medium Term
Adjusted EBITDA projected evolution (€ mil)
400 (700)
(300)
EBITDA Capex Pre Tax Free Cash
Flow
Investment phase
400-700
(100)-(150) 250-550
EBITDA Capex Pre Tax Free Cash
Flow
Post-upgrade
Cash Flow profile pre and post-investment plan** (€ mil)
10 (*) $1/bbl sensitivity in margins results to €90m, assuming full utilisation of refineries and €/$ at 1.3
(**) assuming mid-cycle margins
2013 margin
($2.1/ bbl) 300-350
Medium term
performance
driven by refining
margins
Does not include
Contribution from
Associates
-4
-2
0
2
4
6
8
11
Elefsina Refinery Upgrade Full residue conversion, with 75% middle distillates yield, positioning Elefsina as a top
net cash margin refinery in the Med basin
47%
24%
11%11%
17%25%
64%
Pre upgrade Current
Other
Jet
Diesel/Gas oil
Fuel oil
Product slate
European Med refineries Net Cash margins*
*Wood Mackenzie 2018 Net cash margin projection, Med basin refineries
Elefsina
Refinery utilisation (%)
80
95
8376
3Q14 TD 1H13 Q412 1H14 2H13
> 100%
Competitiveness improvements FY14 target for additional benefits exceeding €80m, with a further €50m earmarked for
2015; 1H14 on track with plan, at €41m of incremental contribution Overview of transformation initiatives* (€m)
12
(*) Benefits reported under Opex, Gross margin and capex
400
313
272
Medium
Term Target
Total
Annualised
Benefit
2Q14
23
1Q14
18
2008-13
-35%
1H14
3,340
2008
5,138
Group Headcount
+38%
2014
90%
2010
65%
PP supply chain integration
15
9
+67%
2014 2009
BEST savings (% over opex)
Evolution of transformation initiatives (€m)
2014 target: >€80m
198
261-24%
1H14 1H09
Group Fixed Opex
Capital structure Successful issue of new Eurobonds and renegotiation of 2016 syndicated Term Facility
improved (i) funding mix with 75% of total Gross debt being term commitments, (ii) maturity
profile with an average of 2 years extension and (iii) lower cost for new transactions by 2-3%
Demand by Geography for new Eurobond 4Q13 Maturity Profile
0
100
200
300
400
500
600
2020+ 2019 2018 2017 2016 2015 2014
4Q13 Gross debt by source
14%
19%DCM
Banks (uncommitted)
36%
Banks (committed)
31%
EIB
2Q14 Maturity Profile (pro-forma*)
0
100
200
300
400
500
600
2020+ 2019 2018 2017 2016 2015 2014
2Q14 Gross debt by source (pro-forma*)
13%
39%
EIB
DCM
Banks (uncommitted)
27%
Banks (committed)
22%
2014-16: c. €700m 2014-16: c. €450m
(*) As at 30th June 2014, adjusting for €325m Eurobond issue and Term loan renegotiation 13
14 14
Contents
• Introduction – Group Overview
• Strategy update
• Industry & market developments
• Strategic business units (SBUs)
• Appendix
15 15
Regional market – Diesel shortage in the Med ELPE middle distillates yield suited to expected increasing shortage in the region
(*) Does not include PPC and armed forces
Source: Ministry of Energy, Environment and Climate Change
DOMESTIC MARKET ENVIRONMENT Stabilisation in domestic market demand following significant contraction during the last few
years
16
Domestic oil products demand 2009-2014 (MT ‘000)
7,208
6,5345,924
5,365
5,342
6,599
-70% Heating Gasoil
& others
Transport Fuels
2013
1,257
2012
7,727
2,362
2011
9,268
3,344
2010
10,125
3,591
2009
11,413
4,205
1H14
3,091
579
2,512
1H13
3,159
609
2,550
1H12
4,401
1,834
2,567
2009 vs 2013 -42%
Auto fuels -26%
17 17
Contents
• Introduction - Group overview
• Strategy update
• Industry & market developments
• Strategic Business Units (SBUs)
• Appendix
Aviation &
Bunkering
C&I (Construction,
wholesale)
Retail
18
Greek petroleum market overview and route to market Leading domestic market position through vertical integration and competitive logistics
assets; well positioned to capture Greek recovery
3rd party
Imports
60-65% 25-30%
0-10%
Greek Refining capacity: 25MT
Domestic market: 11.5MT
ELPE Group
subsidiaries: 3MT
(30%)
MOH Group
subsidiaries: 2MT
(20%)
Independent
marketing
companies: 5MT
(40%)
ELPE exports: 6-8MT
3rd party exports:
5MT
16MT
ELPE Group
subsidiaries: 1-2MT
8%
22%
8%
Greek market product breakdown
Specialty markets
(PPC, public sector):
1.5MT (10%)
Gasoline
Diesel
Gasoil Jet
Bunkers
Other
23%
23%
23%
19
Greek Refining, Supply & Trading economics Trading activity in domestic and international markets complements refining returns;
export sales exceeding 50%.
Markets
(sales premia varying
across channels)
Refining
(Med benchmark returns
& operations performance)
Refined Products
(14.0m MT)
Imported Products
(0.5-1.5m MT)
Aviation & Bunkering
(Med competitive pricing)
Exports, Intra-Group
(Platts Med FOB based + premia)
Domestic market
5 MT
3 MT
Exports, 3rd parties
(Platts Med FOB based)
2 MT
5 MT
Aspropyrgos
NCI 9.7
148kbpd
FCC
Thessaloniki
NCI 6.9
95kbpd
Hydroskimming
Elefsina
NCI 11.3
100kbpd
HDC
16 MT
0.5-1.5 MT
$ / €
Total ELPE capacity
11%
89%
High sulphur
Low sulphur
12%
55%
25%
8%
Fuel oil Middle Distillates
Gasoline Other
1,175 1,078 1,041 982 942
1,170 1,108
981 949
874
2009 2010 2011 2012 2013
EKO HF
20
Marketing Leading position in the Greek market with EKO and BP brands; subsidiaries in
neighboring markets increases downstream integration
Auto-fuels domestic market share
evolution (%)
Domestic Retail network evolution (# PS)
1,931
International Marketing: Regional footprint
30
15
2012 (post BP
acquisition)
2008 (EKO only)
International Marketing: Sales volumes evolution
(MT)
194 220 222 336 367
126 152 150117 115
256243 237
215 211
379 404
2012
1,072
2011
1,041
438
1,072
2013
433
2010
1,051
436
2009
1,014
SER JPK CY BU
1,816
2,345 2,186
2,022
21 21
Petrochemicals Operations centred on vertical integration for higher value product; trading geared to
exports markets
Polypropylene value chain
Propane
Propylene splitter
90%
Thessaloniki PP plant
(220 kt)
PP
Propylene imports
10%
Propylene
10%
90%
Domestic and international
market
BOPP film plant (26kt)
Position:
• Competitive advantage in polypropylene - vertical
integration exceeding 85% of total production
• Exports account for 50- 60% of total sales; strong
export markets in Turkey, Italy and Iberia
• Domestic market share in petchems exceeds 50% in
all products, produced or traded
Targets:
• Increase propylene production capturing propane
conversion value
• Exploit niche markets:
– Increase PP resin grade portfolio and BOPP film
types with tangible cash benefits
– Add new plastics
• Leverage regional positioning and in-market
presence to increase trading
22 22
Power: second largest IPP in Greece; development of a renewable energy
portfolio
Thisvi 420MW CCGT power plant
Consolidated as Associate
• Elpedison BV, is a 50/50 JV between Hellenic
Petroleum and Edison, Italy’s 2nd largest electricity
producer and gas distributor (EdF Group)
– Owns 75% of 810MW of installed CCGT
capacity: a 390MW plant in Thessaloniki and a
420MW in Thisvi
– Increasing power trading & marketing, within
predefined credit metrics
• Energy market in Greece under restructuring;
current model targets system stability during a
transitional phase
• Renewables portfolio target > 100MW (wind, PV,
biomass) subject to fiscal environment and market
developments
23 23
Gas: 35% participation in DEPA, Greece’s incumbent gas company (in sale
process)
DEPA
– Long-term contracts on pipe gas (Russian & Azeri) and
capacity rights on two in-bound interconnecting pipelines
– Long-term contracts with power generators, eligible
industrial customers and existing EPAs
– Owns 51% of the local supply companies (EPAs), with rights
until 2036
DESFA (RAB)
– Greece’s gas grid and LNG import terminal owner and
operator
– International pipelines: Participation in Greece-Bulgaria
Interconnector
• SPA for sale of 66% of DESFA to SOCAR for €400m signed
on 21 Dec 2013; regulatory approvals in process for
completion of transaction
DEPA snapshot financials (€m)
2008 2009 2010 2011 2012* 2013
EBITDA 240 166 211 288 287 209
Net Income 120 61 91 191 197 170
* Adjusted for settlement with PPC
Natural gas transmission network
DEPA Volumes 2007-13 (bcm)
Consolidated as Associate
3.8 4.0 3.6
3.3
4.3 4.2 3.8
2007 2008 2009 2010 2011 2012 2013
24
Contents
• Introduction - Group overview
• Strategy update
• Industry & market developments
• Strategic business units (SBUs)
• Appendix
25 25
Key Milestones Transforming stand-alone government controlled Greek companies to a leading private
sector regional energy player
PETROLA ( Elefsina
Refinery)
DEP &
DEPEKY (Greek E&P)
ELDA ( Aspropyrgos
Refinery)
ESSO -
PAPPAS ( Thessaloniki
Refinery)
PETROLA
(Elefsina
Refinery)
DEP &
DEPEKY (Greek E&P)
ELDA ( Aspropyrgos
Refinery)
ESSO -
PAPPAS ( Thessaloniki
Refinery)
1998 1960 –
1998 2003 2007 2008 2009 2014
Elpedison: 50/50 JV
with Italy’s Edison,
in Power
Libyan upstream
concessions sold to
GDF Suez for $170m
2010
Thessaloniki Refinery
upgrade completed
Sale of 70% stake in
W. Obayed upstream
concession in Egypt
Acquisition of BP’s
Ground Fuels business
in Greece
Merger with
Petrola
Hellas
Elpedison’s 2nd CCGT
Plant (420MW) in
commercial operation
Shareholding events
Listing of
new Group in
ASE/LSE
Greek Government
announces its
intention to divest
its shareholding in
ELPE
2011
Agreement to
DESFA sale for
€212m
Elefsina
upgraded refinery
start up
POIH becomes
strategic investor
with 25% stake
Float 21%
Greek State
36%
POIH 43%
2012 2013
Issue of €500m
Eurobond
Acceleration of
transformation
programs targeting
c.80m of benefits
Issue of €325m and
$400m Eurobond
26
Group Key financials: 2004 - 2013 Strong track record of consistent delivery and balance sheet resilience
(*) Calculated as Reported less the Inventory effects and other one-off non-operating items and special income taxes
€ million, IFRS (Published) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Income Statement Figures
Sales Volume (MT)- Refining 15,807 16,525 16,952 17,130 16,997 15,885 14,557 12,528 12,796 12,696
Sales Volume (MT)- Marketing 4,793 4,727 4,790 5,236 4,910 4,787 5,735 5,126 4,434 4,043
Net Sales 4,907 6,653 8,122 8,538 10,131 6,757 8,477 9,308 10,469 9,674
EBITDA 372 671 502 617 249 390 501 335 298 29
Adjusted EBITDA* 400 466 526 458 513 362 474 363 444 178
Net Income 128 334 260 351 24 175 180 114 86 -269
Adjusted Net Income* 149 191 277 232 216 150 205 137 232 -117
Balance Sheet / cash Flow Items
Capital Employed 2,335 2,956 3,442 3,557 3,153 3,927 4,191 4,217 4,350 3,905
Net Debt 386 699 1,044 977 679 1,419 1,629 1,687 1,855 1,689
Capital Expenditure 295 185 145 195 338 614 709 675 521 112
Dividend (€/share) 0.26 0.43 0.43 0.50 0.45 0.45 0.45 0.45 0.15 n/a
Key drivers
Brent crude ($/bbl) 38.0 55.2 68.1 72.9 98.3 62.6 80.3 111.0 111.7 108.7
FCC cracking Med margins ($/bbl) 7.2 7.3 7.3 7.1 6.8 3.7 4.4 2.9 4.7 2.4
€/$ 1.24 1.24 1.26 1.37 1.47 1.39 1.33 1.39 1.29 1.33
FY € million, IFRS 2Q 1H
2013 2013 2014 Δ% 2013 2014 Δ%
Income Statement
12,696 Sales Volume (MT) - Refining 3,513 3,186 -9% 6,385 5,977 -6%
4,043 Sales Volume (MT) - Marketing 1,032 972 -6% 1,894 1,779 -6%
9,674 Net Sales 2,556 2,385 -7% 4,797 4,462 -7%
Segmental EBITDA
57 - Refining, Supply & Trading -11 10 - 10 34 -
68 - Marketing 17 23 32% 21 33 57%
57 - Petrochemicals 15 19 26% 29 36 23%
-5 - Other 0 -3 - -1 -3 -
178 Adjusted EBITDA * 21 49 133% 59 100 68%
11 Adjusted EBIT * (including Associates) -32 10 - -22 27 -
-209 Finance costs - net -55 -53 2% -102 -106 -4%
-117 Adjusted Net Income * -62 -53 15% -83 -72 13%
29 IFRS Reported EBITDA -23 53 - -35 78 -
-269 IFRS Reported Net Income -95 -50 47% -173 -88 49%
Balance Sheet / Cash Flow
3,905 Capital Employed 4,101 3,751 -9%
1,689 Net Debt 1,802 1,625 -10%
2Q14 GROUP KEY FINANCIALS
(*) Calculated as Reported less the Inventory effects and other non-operating items 27
53
-23
2Q14 2Q13
Reported EBITDA (€m)
49
21
+133%
2Q14 2Q13
Adj. EBITDA (€m)
1,6041,802
-11%
1H14 1H13
Net Debt (€m)
1,69
0
2Q14 HIGHLIGHTS Improved operating performance across all our businesses offset weak margins impact
leading to better results
Industry and Market
• Weaker y-o-y Med benchmark refining margins
• Increased volatility in crude markets due to developments in Libya and Iraq; widening of crude
spreads with Brent-Urals spread averaging $1.5/bbl in 2Q14
• Continuation of stable domestic auto fuels demand for another quarter
Financials
• 2Q14 Adjusted EBITDA at €49m (2Q13: €21m), with all businesses reporting increased
contribution and Elefsina improving its performance post maintenance
• Cost reduction and competitiveness projects generated €23m additional contribution during 2Q14
• Associates contribution at €8m on weaker DEPA results
• Net Debt at €1.6bn (vs €1.8bn in 1H13), with gearing at 43%
Financing & Strategy update
• Successful completion of Eurobond issues ($400m 2016 & €325m 2019); use of proceeds to repay
and renegotiate more expensive loans
• Renegotiated 2016 €605m Syndicated Facility improving its maturity profile and cost
• DESFA transaction approval in progress; draft certification by RAE issued on 29 May 2014
28
-1.0
0.0
1.0
2.0
3.0
4.0
40
60
80
100
120
140
$/bbl
INDUSTRY ENVIRONMENT Volatile crude supply market on geopolitical developments
• Continued uncertainty and resumed
volatility in regional crude markets
• Geopolitical risk led Brent to 9-month
highs ($115/bbl), resulting in inventory
gains
Source: 1312_Section 1 Paws_Cracks_Margins_Market Data Data received from GDO
ICE Brent ($/bbl)
Brent – Urals spread ($/bbl)
• Widening crude differentials in 2Q14
supporting better realised margins
• Urals at 42% of ELPE crude slate in
2Q14
29
2013 2014
2Q 107.5 109.1
1H 107.4 109.0
01/04/2014
105.7
30/06/2014
111.0
2013 2014
2Q 0.64 1.47
1H 0.74 1.12
Hydrocracking
-36.0
-26.0
-16.0
-6.0
2013 2014
10.0
15.0
20.0
0.0
5.0
10.0
15.0
INDUSTRY ENVIRONMENT Widening crude spreads and Naphtha cracks supported benchmark margins
30
Med benchmark margins ($/bbl)
MOGAS
HSFO
ULSD
2.3
1.7
2.4
1.01.0
3.5
4.1
4.7
-34%
2Q14 1Q14 2013 4Q13 3Q13 2Q13 1Q13 2012
3.2
4.13.7
4.7
2.92.4
4.7
5.4+34%
2Q14 1Q14 2013 4Q13 3Q13 2Q13 1Q13 2012
(*) Brent based
-16.0
-11.0
-6.0
-1.0
2013 2014
Naphtha
Product Cracks* ($/bbl)
FCC
(*) Does not include PPC and armed forces
DOMESTIC MARKET ENVIRONMENT Overall auto fuels demand at similar to LY levels with diesel gaining share amongst new car
registrations
31
10%
-7%
-12%
203189
307339
-7%
Bunkers FO
Bunkers Gasoil
Aviation
6m14
1,457
929
6m13
1,562
1,052
601614
186 203
-1%
2Q14
1,502
634
51
2Q13
1,512
675
50
9%
1%
2%
-6%
Aviation and Bunkering
ΜΤ ’000*
13%
-7%
-20%
117
109
237
268
-10%
Bunkers FO
Bunkers Gasoil
Aviation
2Q14
833
456
2Q13
926
572
Domestic Market demand (MT ‘000*)
457 494
426361
150168
1Q14
565
1,588
-3%
1Q13
1,645
612
12%
-15%
8%
-8%
HGO
ADO
MOGAS
LPG & Others
2Q 2014 FINANCIAL RESULTS GROUP PROFIT & LOSS ACCOUNT
(*) Includes derecognition of Elefsina project hedges (non-recurring)
(**) Includes 35% share of operating profit of DEPA Group 32
FY IFRS FINANCIAL STATEMENTS 2Q 1H
2013 € MILLION 2013 2014 Δ % 2013 2014 Δ %
9,674 Sales 2,556 2,386 (7%) 4,797 4,463 (7%)
(9,369) Cost of sales (2,527) (2,274) 10% (4,736) (4,272) 10%
305 Gross profit 29 112 - 61 191 -
(448) Selling, distribution and administrative expenses (105) (105) 0% (213) (208) 2%
(3) Exploration expenses (1) (1) 22% (2) (1) 29%
(50) Other operating (expenses) / income - net* (7) (2) 68% (3) 0 -
(195) Operating profit (loss) (84) 4 - (157) (18) 88%
(209) Finance costs - net (55) (53) 2% (102) (106) (4%)
9 Currency exchange gains /(losses) 10 (2) - 9 (1) -
57 Share of operating profit of associates** 7 10 32% 39 24 (39%)
(338) Profit before income tax (122) (42) 66% (211) (102) 52%
66 Income tax expense / (credit) 27 (9) - 33 10 (69%)
(272) Profit for the period (95) (50) 47% (178) (92) 49%
3 Minority Interest (0) 0 - 5 3 (38%)
(269) Net Income (Loss) (95) (50) 47% (173) (89) 49%
(0.88) Basic and diluted EPS (in €) (0.31) (0.16) 47% (0.57) (0.29) 49%
29 Reported EBITDA (23) 53 - (35) 78 -
33
2Q 2014 FINANCIAL RESULTS GROUP BALANCE SHEET
(*) 35% share of DEPA Group book value (consolidated as an associate)
IFRS FINANCIAL STATEMENTS FY 1H
€ MILLION 2013 2014
Non-current assets
Tangible and Intangible assets 3,607 3,570
Investments in affiliated companies* 692 673
Other non-current assets 172 173
4,470 4,415Current assets
Inventories 1,005 912
Trade and other receivables 743 860
Cash and cash equivalents 960 1,271
2,707 3,042
Total assets 7,177 7,457
Shareholders equity 2,099 2,012
Minority interest 116 112
Total equity 2,214 2,125
Non- current liabilities
Borrowings 1,312 1,531
Other non-current liabilities 164 153
1,475 1,684Current liabilities
Trade and other payables 2,125 2,258
Borrowings 1,338 1,366
Other current liabilities 24 25
3,488 3,648
Total liabilities 4,963 5,333
Total equity and liabilities 7,177 7,457
2Q 2014 FINANCIAL RESULTS GROUP CASH FLOW
34
FY IFRS FINANCIAL STATEMENTS 1H 1H
2013 € MILLION 2013 2014
Cash flows from operating activities
502 Cash generated from operations 187 212
(9) Income and other taxes paid (4) (8)
493 Net cash (used in) / generated from operating activities 183 204
Cash flows from investing activities
(105) Purchase of property, plant and equipment & intangible assets (37) (61)
(7) Acquisition of subsidiary - -
4 Sale of property, plant and equipment & intangible assets 3 -
8 Interest received 4 4
(3) Investments in associates (3) -
13 Dividends received - 38
(90) Net cash used in investing activities (34) (19)
Cash flows from financing activities
(184) Interest paid (93) (114)
(46) Dividends paid (2) -
1,276 Proceeds from borrowings 1,276 376
(1,384) Repayment of borrowings (1,335) (137)
(338) Net cash generated from / (used in ) financing activities (153) 125
65 Net increase/(decrease) in cash & cash equivalents (4) 311
901 Cash & cash equivalents at the beginning of the period 901 960
(6) Exchange gains/(losses) on cash & cash equivalents (2) 1
65 Net increase/(decrease) in cash & cash equivalents (4) 311
960 Cash & cash equivalents at end of the period 895 1,271
(*) Calculated as Reported less the Inventory effects and other non-operating items
2Q 2014 FINANCIAL RESULTS SEGMENTAL ANALYSIS
35
FY 2Q 1H
2013 € million, IFRS 2013 2014 Δ% 2013 2014 Δ%
Reported EBITDA
-80 Refining, Supply & Trading -53 14 - -88 13 -
63 Marketing 17 22 28% 26 32 22%
53 Petrochemicals 13 19 46% 27 36 32%
36 Core Business -23 54 - -34 81 -
-8 Other (incl. E&P) 0 -2 - -1 -3 -
29 Total -23 53 - -35 78 -
102 Associates (Power & Gas) share attributable to Group 20 23 19% 51 53 3%
Adjusted EBITDA (*)
57 Refining, Supply & Trading -11 9 - 10 34 -
68 Marketing 17 23 32% 21 33 57%
57 Petrochemicals 15 19 26% 29 36 23%
183 Core Business 21 51 - 60 103 70%
-5 Other (incl. E&P) 0 -2 - -1 -3 -
178 Total 21 49 - 59 100 69%
102 Associates (Power & Gas) share attributable to Group 20 26 31% 51 53 3%
Adjusted EBIT (*)
-97 Refining, Supply & Trading -53 -22 58% -75 -29 61%
13 Marketing 3 10 - -6 8 -
45 Petrochemicals 11 15 43% 21 29 40%
-39 Core Business -39 3 - -60 8 -
-7 Other (incl. E&P) 0 -2 - -1 -4 -
-46 Total -39 1 - -61 4 -
57 Associates (Power & Gas) share attributable to Group 7 10 32% 39 24 -39%
2Q 2014 FINANCIAL RESULTS SEGMENTAL ANALYSIS – II
36
FY 2Q 1H
2013 € million, IFRS 2013 2014 Δ% 2013 2014 Δ%
Volumes (M/T'000)
12,696 Refining, Supply & Trading 3,513 3,186 -9% 6,385 5,977 -6%
4,043 Marketing 1,032 972 -6% 1,894 1,779 -6%
295 Petrochemicals 74 54 -27% 143 114 -20%
17,035 Total - Core Business 4,619 4,212 -9% 8,422 7,869 -7%
Sales
9,078 Refining, Supply & Trading 2,433 2,221 -9% 4,529 4,151 -8%
3,345 Marketing 830 800 -4% 1,572 1,458 -7%
327 Petrochemicals 80 77 -3% 160 157 -1%
12,750 Core Business 3,343 3,098 -7% 6,261 5,765 -8%
-3,076 Intersegment & other -787 -713 20% -1,464 -1,304 11%
9,674 Total 2,556 2,385 -7% 4,797 4,462 -7%
Capital Employed
2,248 Refining, Supply & Trading 2,392 2,108 -12%
775 Marketing 832 732 -12%
129 Petrochemicals 140 166 19%
3,152 Core Business 3,363 3,005 -11%
692 Associates (Power & Gas) 672 673 0%
62 Other (incl. E&P) 66 73 10%
3,905 Total 4,101 3,751 -9%
37
Glossary of Key Terms
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
CCGT Combined Cycle Gas Turbine
FCC Fluid Catalytic Cracking
HDC Hydrocracking
HS Hydroskimming
HSFO High Sulfur Fuel Oil
IPP Independent Power Producer
Leverage ratio Net Debt / Adjusted EBITDA (including associates share of net income)
LNG Liquefied Natural Gas
NatGas Natural Gas
Nelson Complexity Index (NCI) An index assessing the refinery conversion capacity by relating each processing unit capacity against the
crude distillation capacity and applying weighting factor.
Pro forma leverage ratio Net Debt (excluding debt equal to investment in associates ) / Adjusted EBITDA
Pro forma leverage on mid cycle
historical EBITDA (2010-2012 avg)
Net Debt (excluding investment in associates ) / Adjusted EBITDA(2010-2012 avg)
POIH Paneuropean Oil and Industrial Holdings (POIH)
PP Polypropylene
Solomon Comlexity 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.
ULSD Ultra-low-sulphur diesel (ULSD)
38
Disclaimer
Forward looking statements
Hellenic 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).
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