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Eurobank Investor Forum
June 2013
11
Contents
• Introduction – Group Overview
• Strategy update
• Strategic business units (SBUs)
• Funding & Dividend
• Appendix
22
Group’s Profile…
• Largest independent downstream Group in SEE, with Power & Gas investments– €10b Turnover with 14 MT of product sales– Leading domestic market position covering c. 60% of local wholesale market fuels demand– Regional footprint through subsidiaries and exports enabling coastal location of assets
• Completed its transformational investment plan and competitiveness initiatives, supporting significant cash generation improvement
– Implemented a €2bn investment plan delivering €200m incremental EBITDA* on a FY basis– Transformation initiatives added €230m annual benefits with further upside of €70m– Assets allow upside potential on the back of refining margins and market growth
• Consistent delivery of targets with tight balance sheet management– Achievement of strategic targets, despite Greek crisis & industry “black swans”– Completion of capex cycle allows deleveraging from higher than target gearing– Opportunities for value monetisation (DEPA/DESFA sale process)– Strong balance sheet post refinancing and €500m Eurobond issue
* At mid-cycle margins
Shareholding & GovernanceControlling shareholders’ agreement supported successful transition from state to privatesector Group, divestment of remaining 35.5% held by the Greek State already announced
3
Shareholding structure
4%
36%
11%
Int’l institutionals 7%
Retail
43% POIH
Greek State
GR institutionals
Corporate Governance
Board of Directors:
•Consists of 13 members (4 executive and 9
non executive) appointed as per Articles of
Association
•Board Committees (Finance / Audit / HR)
Executive Committee:
•Key management executives with
responsibility for strategy and operations
Assets overviewCore business around downstream assets with activities across the energy value chain
Refining, Supply & Trading
Domestic Marketing
InternationalMarketing
Petrochemicals
Power & Gas
DESCRIPTION METRICS
• Exploration assets in Egypt: West Obayed (30%), Mesaha (30%)
• Recently upgraded refining asset base:– Aspropyrgos (FCC, 145kbpd)– Elefsina (HDC, 100kbpd)– Thessaloniki (HS, 95kbpd)• Owner of only refinery in FYROM
• Capacity: 16MT• NCI: 9.3 /Solomon: 11.0• Market share: 65%• Tankage: 7m M3
• Leading position in all market channels (Retail, Commercial, Aviation, Bunkering)
• c.1,900 petrol stations• 29% market share• Sales volumes: 4MT
• Presence in Cyprus, Montenegro, Serbia, Bulgaria• Significant advantage on supply chain/vertical
integration
• c.280 petrol stations• Sales volumes: 1MT
• Sole producer and main marketer in Greece with strong export orientation
• PP value chain integrated with refineries• Capacity (PP): 220 kt
• Second largest IPP in Greece (JV with Edison/EdF) • Capacity: 810 MW (CCGT)
• 35% in Greece’s incumbent NatGas supply company • Volumes (2012): 4.2bcm
Exploration & Production
4
Our Group in numbers – key financials (FY12)
Domestic Marketing
InternationalMarketing
Petrochemicals
Power & Gas
(1) Total sales (not consolidated at Group level)(2) Net income contribution (consolidated using equity method)(3) As consolidated (does not include associates), includes other business segments
ASSETS€ Μ
SALES€ Μ
EBITDA€ Μ
FTEs
2,691 10,154 345 2,666
566 2,781 12 568
274 1,087 41 418
144 371 47 190
646 2,3901 702 972
GROUP TOTAL3 4,350 10,469 444 4,051
5
Refining, Supply & Trading
66
Contents
• Introduction - Group overview
• Strategy update
• Strategic business units (SBUs)
• Funding & Dividend
• Appendix
160
200
40
80
360
1200
Domestic Refining Domestic Marketing InternationalMarketing
Other Total 2009 - 2012
Completion of transformational strategy 2007-12Successful execution of Group strategy delivers projected profitability step-up
7
Group Growth Capex 2009-12 (excl. Maintenance)€ million
>2bn
Elefsina upgrade
Thessaloniki upgrade
BP ground fuels business acquisition
Network development
Growth in SEE
450
Historic Average Refining Assets Marketing Assets PortfolioRationalisation
PerformanceImprovement
Medium Term
Adjusted EBITDA evolution (at historic mid cycle margins)€ million
150-250
150-200
30-5030-50 700-900
Capex driven Transformation
driven
1
2
5
Upgrade Refining Assets
Manage Portfolio for value
Fit-for-purpose organisation
3
Enhance vertical integration
4 Improve competitiveness
OUR OBJECTIVE
INVESTMENT PLAN
Structural step-up of operating profitability implemented despite challenging environment; transforming ELPE cash generation profile
450
200
70 700
FY12 Elefsina upgrade Performance Improvement Medium Term
Adjusted EBITDA evolution 2012-2014 (€ mil)
400 -700
-300
EBITDA Capex Pre Tax Free CashFlow
Investment phase
550
-150
700
EBITDA Capex Pre Tax Free CashFlow
Post-upgrade
Cash Flow profile pre and post-investment plan* (€ mil)
8(*): assuming mid-cycle margins
9
Elefsina Refinery Upgrade:50% of production upgraded from Fuel Oil to Middle Distillates and Naptha
• Solomon complexity raised to 13.9• All emissions significantly reduced (eg SO2 by 70% and PM by 84%)
Vacu
um
Uni
t
Atm
osph
eric
Dis
tilla
tion
Hyd
rocr
acke
r (U
OP)
Flex
icok
er(E
xxon
Mob
il)
Ker
osen
e
Swee
teni
ng
New units, Sulphur, Amine, SWS
Die
sel
Des
ulph
uriz
atio
n
LPG
Naphtha
Jet Fuel
AutoDiesel
Petcoke or Flexigas
Sulphur
Propane
HeatingDiesel
MarineDiesel
Ligh
t End
s
Rec
over
y
Crude
Existing Units
New Units
Hydrogen (Haldor Topsoe)
20kbpd
40kbpd
c.50% of CDU output
100kbpd
45kbpd
47%
24%
11%11%
17% 25%
64%
Pre upgrade Current
Other
Jet
Diesel/Gas oil
Fuel oil
New refinery schematic Product slate
Transformation benefitsMaintaining focus on cost control and competitiveness generated €230m of additional cash benefits to date; medium target another €70m
Evolution of transformation initiatives (€m)
Group Headcount (FTEs)
-21%
FY12
4.051
FY08
5.138
BEST80 savings (% over spent)14
9
FY12FY09
Group Fixed Opex
447530
FY12
-16%
FY09
163
125
+30%
Propylene production (kΤ)
10
75
100
Refining Excellence
772
Actual FY12Actual 1Q13Medium-Term target
65
80
Procurement (BEST 80)
672
44
4
60
Reorganisation & HR
48
44
60
Marketing competitiveness
473
466526
458506
301357
233 254
7
61
117
130
190
7.3 7.22 7.076.77
3.74
4.38
2.87
4.7
0
100
200
300
400
500
600
700
800
2005 2006 2007 2008 2009 2010 2011 2012
EURm
11
Group adjusted EBITDA (€m) vs benchmark FCC cracking margins ($/bbl)
Benchmark FCC cracking margins
Contribution from transformation initiatives
Transformation benefitsImplementation of transformation initiatives supported Group results through a period of weak margins and Greek crisis
12
Strategy 2013-2017Business strategy focuses on operational improvements, risk management and cash flow maximisation
• Operational Excellence– Optimize South hub refining operations
– Adapt Domestic marketing to current environment
– Maintain competitiveness improvement momentum
• Rebalance exposure to Greek market– Grow trading capabilities on the back of refining assets
– Develop regional footprint strategy (wholesale/retail)
• Leverage business portfolio– Maximise value out of 35% participation in gas
incumbent (DEPA/DESFA)
– Optimise value generation for all our businesses
• Develop our people and continue to build culture of excellence
Business Priorities Financial Targets
• Improve profitability– Achieve medium term EBITDA of €700m pa
– Deliver €200-350m FCF pa
• Deleverage Group– Reduce Debt/EBITDA < 2 within 3 years
– Decrease gearing to D/E < 0.75
• Diversify funding mix– Increase capital markets participation
– Expand trade financing
1313
Contents
• Introduction - Group overview
• Strategy update
• Strategic Business Units (SBUs)
• Funding & Dividend
• Appendix
1414
Refinery assets: Coastal location supports integration and provides growth opportunities in neighboring markets offsetting weak Greek market
Coastal location of refineries ensures wide crude oil sourcing options
Cost advantaged to supply SEE/East Med markets with end-products
Opportunities for regional consolidation and synergies on logistics footprint
ROMANIA
TURKEY
BULGARIA
SERBIA
CYPRUS
FYROM
GREECE
ALBANIA
BOSNIA
MONTENEGRO
Refining
MarketingPower & Gas 11.0
8.1 7.3
11.013.9
7.0
Aspropygros Elefsina Thessaloniki NCI Solomon
Nelson/Solomon complexity – benchmark margins ($/bbl, average 2011-12)
5 -34
15
Refineries complexity upgrade impact on the Group’s crude and product slate
26%15%
32%45%
9% 8%
23% 21%
10% 11%
Pre upgrade Current
Other
Gasoline
Jet
Diesel/Gas oil
Fuel oil15% 11%
10%0%
75%89%
Pre Upgrade Current
High sulphur
Medium sulphur
Low sulphur
47%
24%
11%11%
17% 25%
64%
Pre upgrade Current
Other
Jet
Diesel/Gas oil
Fuel oil
Crude slate — Group-wide Product slate — Group-wide
Crude slate — Elefsina Product slate — Elefsina
41%
59%
100%
Pre upgrade Current
High sulphur
Medium sulphur
Aviation & Bunkering
C&I (Construction, wholesale)
Retail
16
Greek petroleum market overview and route to marketHP enjoys leading domestic market position with high vertical integration and good logistics assets
3rd party Imports
60-65% 25-30%
0-10%
Greek Refining capacity: 25MT
Domestic market: 12.5MT
ELPE Group subsidiaries: 3.5MT
(30%)
MOH Group subsidiaries: 2.5MT
(20%)
Independent marketing
companies: 5MT (40%)
ELPE exports: 7MT
3rd party exports: 5MT
16MT
ELPE Group subsidiaries: 2MT
24%
Other
5%
Bunkers25%
Jet7%
Gasoil
21%Diesel
18%
Gasoline
Greek market product breakdown
Specialty markets (PPC, public sector):
1.5MT (10%)
17
Greek Refining, Supply & Trading economicsUSD based value chain with significant trading returns complementing refining; export sales expected to exceed 50%, with domestic market premia accounting for less than 30% of EBITDA
Markets(sales premia varying across channels)
Refining(Med benchmark returns & operations performance)
Refined Products(16.0m MT)
Imported Products(1-1.5m MT)
Aviation & Bunkering (Med competitive pricing)
Exports, Intra-Group (Platts Med FOB based + premia)
Domestic market (Import parity pricing)
6 MT
3 MT
Exports, 3rd parties (Platts Med FOB based)
2 MT
5 MT
AspropyrgosNCI 11.0145kbpd
FCC
ThessalonikiNCI 7.395kbpd
Hydroskimming
ElefsinaNCI 8.1100kbpd
HDC
16 MT
1-1.5 MT
$ / €
Total ELPE capacity
Contribution per business and refining volumes breakdownReliance on Greek market significantly reduced following Elefsina upgrade
18
23
9
8
23
46
17
Total
60
Export trading
5
PetChemsInternational (trading & marketing)
9
Aviation & Bunkering (trading & marketing)
Domestic market
(trading & marketing)
Refining
Group “see-through” EBITDA breakdown – pro-forma post upgrade (%)
Dependency on Greek market
None
Low
High
Refining sales volume breakdown – pro-forma post upgrade (%)
33%
17%
Exports 50%
Aviation & Bunkering
Domestic market
Public sector sales accounts for c.4% of domestic market (1.5% of total sales)
1919
Refined Oil products balances 2000-2025fmillion tonnes / year
Regional marketIncreased middle distillates yield leveraging on regional market dynamics
-30
-25
-20
-15
-10
-5
0
5
10
15
LPG Naphtha Gasoline Jet/Kero Diesel Gasoil LSFO HSFO
Balan
ces,
Mt
.
2000 2005 2010 2015 2020 2025
Surplus
Deficit
Source Wood Mackenzie, 2012
Group product balances 2011-2013 pro formamillion tonnes / year
MD NaphthaFOMOGAS
2011 2013 Pro forma
LONG
SHORT
32%
10%37%
20%
Domestic Oil products demand 2008-2012million tonnes / year
Top European markets with expecteddemand increase (2013-2022) - mil MT
Source: Wood Mackenzie, Feb 2013
2011
9.239
2010
10.125
7.690
20122008
10.832
2009
11.413
0
2
4
6
8
10
12
SERSLVHUNROMBELCZBULGRTUR NLUKR POL
1,175 1,078 1,041 982
1,1701,108
981 949
2009 2010 2011 2012EKO HF
20
MarketingLeading position in the Greek market enhanced following BP Greek business acquisition; diversification in other SE European markets increases downstream integration
Autofuels domestic market share evolution (%)
Domestic Retail network evolution (# PS)
2,345 2,186 2,022 1,931
International Marketing: Regional footprint
29
15
2012 (post BP acquisition)
2008 (EKO only)
International Marketing: Sales volumes evolution (MT)
194 220 222 336126 152 150
117256 243 237 215
2010
1.051
436
2009
1.014
438
2012
1.072
404
2011
1.041
433
JPK SER BU CY
1,170
2121
PetrochemicalsOperations centred on vertical integration for higher value product; trading shifted to exports markets
Position:• Only petrochemicals producer in Greece with
material presence• Domestic market share exceeds 50% in all
products, produced or traded• Strong competitive advantage in polypropylene -
vertical integration play• Exports account for 60% of total sales; strong
export markets in Turkey, Italy and Iberia
Targets• Debottleneck propylene production • Exploit niche markets:
– Add new commodity plastics (PE)– Increase selectively PP resin grade portfolio– Increase selectively BOPP film types
• Leverage regional positioning and in-market presence to increase trading
Petrochemicals supply chain
(90 kt)
ThessalonikiRefinery
Solvents Plant (90 kt)
Caustic/ChlorinePlantNaCI Imports
AspropyrgosRefinery
BOPP Film(26 kt)
PP Plant(220 kt)
PropyleneSplitter
ImportedChemicals
DistributionCentre
MARKET
2222
Power: second largest IPP in Greece; development of a renewable energy portfolio
Thisvi 420MW CCGT power plant • Elpedison, is a 50/50 joint venture between
Hellenic Petroleum and Edison, Italy’s 2nd
largest electricity producer and gas distributor and subsidiary of EdF Group– Owns and operates 810MW of installed
CCGT capacity: a 390MW plant in Thessaloniki and a 420MW in Thisvi
– Energy market in Greece under restructuring; cost recovery model allows system stability and debt servicing in the short term
– Active in power trading & marketing albeit with limited exposure due to market anomalies
• Renewables portfolio target > 100MW (wind, PV, biomass) subject to fiscal environment and market developments
Consolidated as Associate
2323
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 to sell gas to small industrial, commercial and all residential customers
DESFA (RAB)
–Greece’s gas grid and LNG import terminal owner and operator
–Participates in South Stream and Interconnector Greece-Bulgaria pipelines
• DEPA joint sale process with HRADF; at present evaluating offer by SOCAR for DESFA
DEPA snapshot financials (€m) 2008 2009 2010 2011 2012*
EBITDA 240 166 211 288 287
Net Income 120 61 91 191 197
* Adjusted for settlement with PPC
Natural gas transmission network
DEPA Volumes 2007-12 (bcm)4,3
3,33,6
4,24,03,8
2007 20122011201020092008Consolidated as Associate
24
Contents
• Introduction - Group overview
• Strategy update
• Strategic business units (SBUs)
• Funding & Dividend
• Appendix
25
EUROBOND ISSUANCESuccessful execution of inaugural €500m issuance; benchmark transaction for Greek issuers with strong additional interest and reverse enquiries from investors
Demand by Geography
18%
27%55%
Greek
InternationalprivateInternationalinstitutional
• Unrated, 4-year €500m issue priced on 29 April 2013
• Standard Eurobond documentation structure with
listing in Luxemburg stock exchange
• Books closed early (24hrs) due to strong demand at
€3.5bn, an oversubscription of 7 times
• Significant interest from international investors,
exceeding 80% of order book
• The transaction was arranged by Alpha Bank, Credit
Suisse, Eurobank, HSBC and National Bank of
Greece
• Follow up transaction over the coming 6-12 months
under review, aiming to reduce financing cost and
increase USD funding
26
DEBT PROFILESuccessful refinancing consistent with communicated strategy. Funding and liquidity issues addressed; main remaining challenge is A-L currency matching.
Drawn credit facilities by source breakdown (post Eurobond)
62%6%
14%
18% Greek
International
Supranational
DCM
• 4-year, €500m DCM issued during May 2013
• Funding base diversification and maturity profile
extension achieved with new €500m Eurobond and
€605m Term Loans
• Part of proceeds used to prepay €225m facility
maturing within 2013; balance to be used for further
reduction of bank debt and crude supply trade
finance
• Agreed to extent €400m RCF maturing 2Q13 for
12+6 months
• Further changes to funding mix will be evaluated
during the year, aiming to reduce costs and match
currency exposure
Term lines maturity overview (€m)
Banking facilities
Roll-over for 12-18 months
27
DIVIDEND POLICYBoD proposal for 0,15 €/Share dividend out of 2012 results covering statutory minimum; additional payout (interim 2013) to be considered later in the year
EPS and DPS 2009-2012 (€/share)
* Dividend will be subject to witholding tax in line with legislation in place at the time of approval / distribution
• Interim dividend for 2013 to
be announced on the basis of
developments in 2Q-3Q:
‒ DEPA sale
‒ New tax law impact
‒ Financial performance
28
Contents
• Introduction - Group overview
• Strategy update
• Strategic business units (SBUs)
• Funding & Dividend
• Appendix
2929
Key MilestonesTransforming stand-alone government controlled Greek companies to a leading privatesector regional energy player
PETROLA(ElefsinaRefinery)
DEP & DEPEKY
(Greek E&P)
ELDA(Aspropyrgos
Refinery)
ESSO-PAPPAS
(ThessalonikiRefinery)
PETROLA(ElefsinaRefinery)
DEP & DEPEKY
(Greek E&P)
ELDA(Aspropyrgos
Refinery)
ESSO-PAPPAS
(ThessalonikiRefinery)
19981960 –1998 2003 2007 2008 2009 2013
Elpedison: 50/50 JV with Italy’s Edison, in Power
Libyan upstreamconcessions sold toGDF Suez for $170m
2010
Thessaloniki Refinery upgrade completed
Sale of 70% stake inW. Obayed upstream concession in Egypt
Acquisition of BP’sGround Fuels businessin Greece
Merger with PetrolaHellas
Elpedison’s 2nd CCGTPlant (420MW) incommercial operation
Shareholding events
Listing of new Group in ASE/LSE
Greek Government announces its intention to divest its shareholding in ELPE
2011
DEPA privatisation process at final stage
Elefsina upgraded refinery commercial operation
POIH becomesstrategic investor with 25% stake
Float
22%
Greek State
36%
POIH42%
2012
Summary Group Structure1
30
HELLENICPETROLEUM
EKO S.A. (and
subsidiaries)HPI AG
HELLENIC FUELS S.A. HP SERBIA
LTD
HP BULGARIA
LTD
HPMCYPRUS LTD
JPK
ELPET VALKANIKI
Shipping companies
ELPEDISON B.V2
HPF plc (treasury)
Domestic Marketing International Marketing
DEPA Group
Gas supply, transportation & distribution
50%
Power Generation & TradingAsprofos
S.A.
Engineering Services
PetChems (BOPP film)
DIAXON S.A.
35%
Gas & Power associates63%
VARDAX
OKTA
(1) All companies 100% owned unless otherwise noted
(2) 45% owned through HPI
International Refining Others
80%
82%
€ million, IFRS (Published) 2004 2005 2006 2007 2008 2009 2010 2011 2012
Income Statement Figures
Sales Volume (MT)- Refining 15,807 16,525 16,952 17,130 16,997 15,885 14,557 12,528 13,532
Sales Volume (MT)- Marketing 4,793 4,727 4,790 5,236 4,910 4,787 5,735 5,126 4,434
Net Sales 4,907 6,653 8,122 8,538 10,131 6,757 8,477 9,308 10,469
EBITDA 372 671 502 617 249 390 501 335 298
Adjusted EBITDA* 400 466 526 458 513 362 474 363 444
Net Income 128 334 260 351 24 175 180 114 84
Adjusted Net Income* 149 191 277 232 216 150 205 137 232
EPS (E) 0.42 1.09 0.85 1.15 0.08 0.57 0.59 0.37 0.28
Adjusted EPS (€)* 0.49 0.62 0.91 0.76 0.71 0.49 0.67 0.45 0.76
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
Net Debt 386 699 1,044 977 679 1,419 1,629 1,687 1,855
Capital Expenditure 295 185 145 195 338 614 709 675 521
Dividend (€/share) 0.26 0.43 0.43 0.50 0.45 0.45 0.45 0.45 0.15
Key drivers
Brent crude ($/bbl) 38.0 55.2 68.1 72.9 98.3 62.6 80.3 111.0 111.7
FCC cracking Med margins ($/bbl) 7.2 7.3 7.3 7.1 6.8 3.7 4.4 2.9 4.7
€/$ 1.24 1.24 1.26 1.37 1.47 1.39 1.33 1.39 1.29
31
Group Key financials: 2004 - 2012Strong 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
32
1Q 2013 GROUP KEY FIGURES
(*) Calculated as Reported less the Inventory effects and other non-operating items, including deferred tax charge due to tax rate increase
FY € million, IFRS 1Q 1Q2012 2012 2013 Δ%
Income Statement
13,532 Sales Volume (MT) - Refining 3,315 2,986 -10%
4,434 Sales Volume (MT) - Marketing 1,161 862 -26%
10,469 Net Sales 2,716 2,241 -17%
298 EBITDA 108 -12 -
120 EBIT 68 -72 -
38 Associates' share of profit 20 32 59%
158 EBIT (including Associates' share of profit) 88 -41 -
84 Net Income 71 -78 -
444 Adjusted EBITDA * 76 38 -49%
335 Adjusted EBIT * (including Associates) 55 10 -82%
232 Adjusted Net Income * 45 -21 -
Balance Sheet / Cash Flow
4,350 Capital Employed 4,866 4,623 -5%
1,855 Net Debt 2,257 2,188 -3%
518 Capital Expenditure 80 10 -87%
33
RESULTS HIGHLIGHTS1Q performance affected by heating gasoil sales drop and slower Elefsina ramp-up
• 1Q12 Adjusted EBITDA at €38m (-49% y-o-y) reflects the negative impact of domestic market demand drop (mainly HGO driven) on refining and retail business as well as the slower Elefsina ramp-up and contribution to profits
• Reported results were affected by inventory losses on declining prices at the end of 1Q (reversed since then) as well as higher depreciation and financing costs; EBITDA was reported at €-12m and NI at €-78m. One-off impact on deferred taxation from corporate tax rate increase to 26% at €11m
• Refinancing completion and successful first Eurobond issuance for €500m in May address any funding and liquidity issues allowing us to focus on delivering value from our new investment and optimising our supply chain
• Net Debt at €2.2bn, reduced y-o-y, with Gearing (D/CE) at 47%. Positive pre WC cashflow as Capex reverts to maintenance mode
• DEPA privatisation at final stages, with binding offers expected in June. A successful transaction on the €582m BV asset will accelerate deleveraging, achieving Group objective for Gearing of 35-40% well ahead of the 3-year plan
1.10
1.15
1.20
1.25
1.30
1.35
1.40
1.45
1.50
1.55
1.60€/$
31/03/131.28
31/12/121.32
20
40
60
80
100
120
140
160$/bbl
31/03/13$110,02
31/12/12$111.11
34
INDUSTRY ENVIRONMENTCrude oil price tracking macro volatility; Eurozone developments weakened € vs $
€/$ exchange rate
ICE Brent ($/bbl)
• Crude oil prices
declined on negative
macros and
developments in the
second half of 1Q
• Political developments
in euro-zone countries
and the Cyprus
banking crisis led €
lower vs $
2012 2013FY 1.29 1.321Q 1.31 1.32
2012 2013FY 111.7 112.61Q 118.3 112.6
5.9
4.2 4.3
6.4 6.9
5.4
4.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2011 1Q12 2Q12 3Q12 4Q12 2012 1Q13
2.93.8
6.5 6.3
2.2
4.74.1
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2011 1Q12 2Q12 3Q12 4Q12 2012 1Q13
-20.0
-15.0
-10.0
-5.0
0.0
2012 2013
-36.0
-26.0
-16.0
-6.0
2012 2013
-1.0
4.0
9.0
14.0
2012 2013
35
INDUSTRY ENVIRONMENTImproved FCC margins on gasoline recovery; Hydrocracking flat y-o-y
Med FCC Cracking benchmark margins ($/bbl)
Med Gasoline cracks ($/bbl)
Med ULSD cracks ($/bbl)
Med Hydrocracking benchmark margins ($/bbl)
Med HSFO cracks ($/bbl)
Med Naphtha cracks ($/bbl)
10.0
15.0
20.0
2012 2013
36
SEGMENTAL RESULTS OVERVIEW 1Q 2013Strong Petchems performance and sustained international marketing partly offset domestic market decline and slower Elefsina ramp-up
Adjusted EBITDA evolution 1Q12 – 1Q13 (€m)
Refining, S&T
MKT
Chems
Other(incl. E&P)
1
56
35
21
13
8
4
8
614
-2
1
-11Q 12 Refining Marketing Petchems Other 1Q 13
76
38
‐63%
‐67%72%
37
1Q 2013 FINANCIAL RESULTS GROUP PROFIT & LOSS ACCOUNT
(*) Includes headcount reduction in 2012
FY IFRS FINANCIAL STATEMENTS 1Q2012 € MILLION 2012 2013 Δ %
10,469 Sales 2,716 2,241 (17%)
(9,934) Cost of sales (2,551) (2,218) 13%
535 Gross profit 165 24 (86%)
(408) Selling, distribution and administrative expenses (99) (100) (1%)
(4) Exploration expenses (0) (1) -
(4) Other operating (expenses) / income - net* 2 5 -
120 Operating profit (loss) 68 (72) -
(54) Finance costs - net (11) (47) -
11 Currency exchange gains /(losses) 18 (1) -
38 Share of operating profit of associates 20 32 59%
114 Profit before income tax 95 (89) -
(33) Income tax expense / (credit) (24) 6 -
81 Profit for the period 71 (83) -
3 Minority Interest 0 5 -
84 Net Income (Loss) 71 (78) -
0.28 Basic and diluted EPS (in €) 0.23 (0.25) -
298 Reported EBITDA 108 (12) -
38
1Q 2013 FINANCIAL RESULTSGROUP BALANCE SHEET
IFRS FINANCIAL STATEMENTS FY 1Q€ MILLION 2012 2013Non-current assetsTangible and Intangible assets 3,708 3,655Investments in affiliated companies 646 677Other non-current assets 137 143
4,492 4,476Current assetsInventories 1,220 1,246Trade and other receivables 791 990Cash and cash equivalents 901 411
2,912 2,647Total assets 7,404 7,123
Shareholders equity 2,376 2,320Minority interest 121 115Total equity 2,497 2,434
Non- current liabilitiesBorrowings 383 917Other non-current liabilities 222 216
605 1,133Current liabilitiesTrade and other payables 1,920 1,850Borrowings 2,375 1,684Other current liabilities 7 22
4,301 3,556Total liabilities 4,907 4,689Total equity and liabilities 7,404 7,123
39
FY 2012 FINANCIAL RESULTSGROUP CASH FLOW
FY IFRS FINANCIAL STATEMENTS 1Q 1Q2012 € MILLION 2012 2013
Cash flows from operating activities558 Cash generated from operations (495) (276)(34) Income and other taxes paid (2) (1)524 Net cash (used in) / generated from operating activities (496) (277)
Cash flows from investing activities(518) Purchase of property, plant and equipment & intangible assets (80) (10)
- Acquisition of BP (Hellenic Fuels) - -4 Sale of property, plant and equipment & intangible assets - 12 Sale of subsidiary - -- Grants received - -
13 Interest received 4 2(1) Investments in associates - -
9 Dividends received - -(491) Net cash used in investing activities (76) (7)
Cash flows from financing activities(67) Interest paid (15) (45)
(140) Dividends paid - (2)- Securities held to maturity - -
683 Proceeds from borrowings 100 776(591) Repayment of borrowings (65) (933)
Payments to minority holdings from share capital decrease - -(115) Net cash generated from / (used in ) financing activities 20 (204)
(82) Net increase/(decrease) in cash & cash equivalents (552) (488)
985 Cash & cash equivalents at the beginning of the period 985 9014 Exchange losses on cash & cash equivalents (2) (2)
(89) Net increase/(decrease) in cash & cash equivalents (552) (488)901 Cash & cash equivalents at end of the period 431 411
40(*) Calculated as Reported less the Inventory effects and other non-operating items
1Q 2013 FINANCIAL RESULTSSEGMENTAL ANALYSIS
FY 1Q2012 € million, IFRS 2012 2013 Δ%
Reported EBITDA210 Refining, Supply & Trading 93 -34 -
44 Marketing 9 9 1%
47 Petrochemicals 8 14 71%
300 Core Business 110 -11 -
-2 Other (incl. E&P) -2 -1 35%
298 Total 108 -12 -
89 Associates (Power & Gas) share attributable to Group 62 31 -49%
Adjusted EBITDA (*)345 Refining, Supply & Trading 56 21 -63%
53 Marketing 13 4 -67%
47 Petrochemicals 8 14 71%
444 Core Business 77 39 -49%
0 Other (incl. E&P) -2 -1 32%
444 Total 76 38 -49%
121 Associates (Power & Gas) share attributable to Group 62 31 -49%
Adjusted EBIT (*)244 Refining, Supply & Trading 35 -22 -
-6 Marketing -2 -9 -
29 Petrochemicals 4 10 -
267 Core Business 37 -21 -
-2 Other (incl. E&P) -2 -1 29%
265 Total 36 -22 -
87 Associates (Power & Gas) share attributable to Group 46 23 -49%
41
1Q 2013 FINANCIAL RESULTSSEGMENTAL ANALYSIS – II
FY 1Q2012 € million, IFRS 2012 2013 Δ%
Volumes (M/T'000)13,532 Refining, Supply & Trading 3,315 2,986 -10%
4,434 Marketing 1,161 862 -26%
348 Petrochemicals 87 68 -22%
18,314 Total - Core Business 4,564 3,916 -14%
Sales 10,154 Refining, Supply & Trading 2,687 2,097 -22%
3,868 Marketing 1,003 742 -26%
371 Petrochemicals 91 80 -12%
14,393 Core Business 3,781 2,918 -23%
-3,924 Intersegment & other -1,065 -677 36%
10,469 Total 2,716 2,241 -17%
Capital Employed1,101 Refining, Supply & Trading 1,101 2,869 -
840 Marketing 840 900 7%
144 Petrochemicals 144 139 -3%
2,085 Core Business 2,085 3,908 87%
1,590 Refinery Upgrades 1,590 0 -100%
646 Associates (Power & Gas) 646 677 5%
29 Other (incl. E&P) 29 37 28%
4,350 Total 4,866 4,623 -5%
42
Disclaimer
Forward looking statementsHellenic 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).
