Raiffeisen Centrobank Institutional Investors Conference PETROL
Contents 2 1. Introduction 2. Business Activities 3. Investor Information Appendix
3 1. Introduction
The Petrol Group 4 The leading Slovenian energy company. The principal strategic supplier of oil products and other energy products in Slovenia. Main activities: oil, gas and merchandise trading in Slovenia and in SE Europe and other energy and environmental activities. The Petrol Group: 32 companies, 10 countries, retail network of 441 service stations as per 31.12.2010. The largest company and the largest group in terms of turnover in 2010 in Slovenia. Fourth largest company in terms of market capitalisation on the Ljubljana Stock Exchange.
The Petrol Group 5 Parent Company Petrol d.d., Ljubljana Subsidiaries in Slovenia Petrol Maloprodaja Slovenija d.o.o., Ljubljana Petrol Skladiščenje d.o.o., Ljubljana Petrol Tehnologija d.o.o., Ljubljana Petrol Energetika d.o.o., Ravne na Koroškem Petrol VNC d.o.o., Ljubljana Ogrevanje Piran d.o.o., Portorož Subsidiaries abroad AUSTRIA: Petrol-Trade Handelsges.m.b.H., Vienna CYPRUS: Cypet Oils Ltd., Limassol Cypet-Trade Ltd., Limassol CROATIA: Petrol Hrvatska d.o.o., Zagreb Euro - Petrol d.o.o., Rijeka Petrol-Jadranplin d.o.o., Šibenik Petrol-Butan d.o.o., Osijek BOSNIA AND HERZEGOVINA: Petrol BH Oil Company d.o.o., Sarajevo SERBIA: Petrol d.o.o., Beograd Petrol Gas Group d.o.o., Novi Sad Rodgas AD, Bačka Topola MONTENEGRO: Petrol - Invest d.o.o., Cetinje MACEDONIA: Petrol Energetika DOOEL, Skopje Joint Ventures Instalacija d.o.o., Koper, Slovenia Geoenergo d.o.o., Lendava, Slovenia Soenergetika d.o.o., Kranj, Slovenia Petrol Bonus d.o.o., Cetinje, Montenegro Petrol Oti Slovenija L.L.C., Priština, Kosovo Petrol Slovenia Tirana Wholesale SH.A., Tirana, Albania Petrol Slovenia Tirana Distribution SH.P.K., Tirana, Albania Affiliated companies Aquasystems d.o.o., Maribor, Slovenia Geoplin d.o.o., Ljubljana, Slovenia Marche Gostinstvo d.o.o., Logatec, Slovenia Istrabenz d.d., Koper, Slovenia Bio goriva d.o.o., Rače, Slovenia
6 Business Model Independence and flexibility in sourcing. Own storage facilities and optimal logistic network. Wide retail network of service stations in Slovenia and across SE Europe. Concept of convenience model of service stations. Pricing models in key markets quarantee stable margins and limit risk exposure (possible growth of margins regulated by the Government). Our supply is reliable, with long tradition. Stable dividend policy. Financial stability.
Financials: The Petrol Group 7 (EUR million unless stated) 2010 2009 Plan 2011 Index (10/09) Index (plan 11/10) Sales revenues 2,803 2,334 2,900 120 103 Revenues from sales of merchandise 417 382 437 109 105 EBITDA 1 94.8 83.3 103.4 114 109 Net profit 32.9 10.4 48.9 316 149 Total assets 1,266 1,136 1,352 111 107 Total equity 405 382 456 106 113 Total debt 492 499 507 99 103 Added value per employee (EUR th.) 50.7 46.6 52.5 109 104 ROE 2 8.1% 2.7% 10.7% 298 132 Net debt 3 /Equity ratio 1.17 1.29 1.10 91 94 Net debt 3 /EBITDA ratio 5.0 5.9 4.8 85 96 CAPEX 65.9 44.5 88.8 148 135 Sales quantities of petroleum products (m tons) 2.35 2.22 2.34 106 100 Number of service stations 441 433 467 102 106 Total number of employees 3,520 3,556-99 - 1 EBITDA = operating profit or loss + regular depreciation 2 ROE = Net profit/equity 3 Net debt = Long-term + short-term financial liabilities - Cash and cash equivalents
Revenues and Gross Profit: The Petrol Group (2006 Plan 2011) 8 3,500 3,000 CAGR10/06 = 6.8% 350 300 Sales revenues (EUR million) 2,500 2,000 1,500 1,000 500 250 200 150 100 50 Gross profit (EUR million) 0 2006 2007 2008 2009 2010 Plan 2011 0 Gross profit Sales revenues EUR million 2006 2007 2008 2009 2010 Plan 2011 Sales revenues 1,942 2,109 2,950 2,334 2,803 2,900 Gross profit 212 228 286 280 295 304 Gross pr./sales rev. 11% 11% 10% 12% 11% 10%
EBITDA and Net Profit: The Petrol Group (2006 Plan 2011) 9 120 75 EBITDA (EUR million) 100 80 60 40 20 Net profit (EUR million) 55 35 15-5 -25 2006 2007 2008 2009 2010 Plan 2011 0 2006 2007 2008 2009 2010 Plan 2011-45 -65 EBITDA = operating profit + regular depreciation
Balance Debt Profile: The Petrol Group (2006 Plan 2011) 10 Gearing ratio 60% 55% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 57% 56% 54% 52% 47% 520 500 491 475 462 456 425 409 411 394 388 27% 156 31.12.06 31.12.07 31.12.08 31.12.09 31.12.10 Plan 2011 600 500 400 300 200 100 0 Equity and provisions, Net debt (EUR million) Equity and provisions Net debt Gearing ratio Gearing ratio = Net debt / (Net debt + Equity and provisions) Net debt = Total debt Cash and cash equivalents
Strategy 2010-2014 11 Mission: by providing a comprehensive range of energy and environmental products and services, to secure reliable, economical and environmentally friendly supply to our customers in Slovenia and on the markets of SE Europe. Vision: to become a market player committed to meeting the highest quality and development standards relating to the comprehensive supply of energy products and the convenience model of service stations in SE Europe, ensuring above-average satisfaction of our customers. Key business areas: oil trading activity on the Slovenian market and on the markets of SE Europe (Croatia, Bosnia and Herzegovina, Serbia, Montenegro, Kosovo), and energy activity (gas, heat, electricity and environmental solutions).
Strategy 2010-2014 12 Strategic orientations: stimulation of growth, increase in profitability, increase in added value per employee, financial stability, quality and business excellence, stable dividend policy. Goals: to be one of three major trading companies in each of the countries in SE Europe in which we operate, above-average satisfaction of customers, 10% annual net profit growth. Key activities to achieve strategic goals: orientation to sales, marketing, procurement and logistics of oil products and merchandise; development of conventional and alternative fuels.
Plan 2011 and Strategy 2014 13 (EUR million unless stated) Plan 2011 Strategy 2014 Index (strategy 14/plan 11) Sales revenues 2,900 3,500 121 EBITDA 1 103 167 162 Net profit 48.9 73.1 149 Added value per employee (EUR th.) 53 57 108 ROE (%) 10.7 13.2 123 Net debt/equity ratio 1.1 0.8 73 Net debt/ebitda ratio 4.8 3.0 63 Sales quantities of petroleum products (m tons) 2.34 2.8 120 Number of service stations 467 570 122 Revenues from sales of merchandise 437 503 115 Sales quantities of natural gas (m m 3 ) 108 148 137 Sales quantities of electricity (m kwh) 1,011 2,150 213 CAPEX 2 88.8 428-1 EBITDA = operating profit or loss + regular depreciation 2 CAPEX in Strategy 2014 is for period 2010-2014
14 2. Business Activities
Retail Network of the Petrol Group 31.12.2010 Strategy 2014 15 31.12.2010 Strategy 2014
Petroleum Activity in 2010 16 No. of service stations as per 31.12.2010: 441 (Slovenia 313, Croatia 79, Bosnia and Herzegovina 38, Serbia 5, Montenegro 3, Kosovo 3) Sales revenues from the petroleum activity: 2,688 million EUR (Index10/09 = 120) Sales quantities of petroleum products (74% in Slovenia and EU, 26% in SE Europe): 2.35 million tons (Index10/09 = 105) Revenues from sales of merchandise: 417 million EUR (Index10/09 = 109) Revenues from services: 29 million EUR (Index10/09 = 96) Market share: Slovenia 60%, Croatia 10%, Bosnia and Herzegovina 6%
Energy Activity 17 Key processes on energy field Sales and distribution of natural gas Sales and distribution of LPG Production, sales, distribution and trading of electricity Production, sales and distribution of heat Other energy services (efficient energy consumption and renewable energy projects, solar power stations) NATURAL GAS sales distribution TOTAL ENERGY MANAGEMENT LPG sales distribution ELECTRICITY production sales distribution trading HEAT POWER production sales distribution OTHER ENERGY SERVICES ENVIRONMENTAL ACTIVITIES Environmental activities (wastewater treatment plants, energy use of waste)
Energy Activity in 2010 2010 2009 Plan 2011 Index (10/09) Index (plan 11/10) Sales revenues from the energy activity (EUR m) 115 96-120 - Sales quantities of natural gas (th. m 3 ) 104,239 99,885 107,956 104 104 Sales quantities of LPG (th. tons) 47.8 46.1 58.8 104 123 Sales quantites of electricity (MWh) 356,703 227,826 1,011,288 157 284 Distribution quantities of electricity (MWh) 283,700 204,200-139 - Sales quantities of heat (MWh) 65,317 60,377 76,630 108 117 Distribution quantities of heat (MWh) 74,865 62,912-119 - Number of gas concessions 29 28 29 104 100 Number of heat concessions 2-5 - 250 18 We are also active on the field of: Efficient energy consumption and renewable energy projects, solar power stations. Ecology (wastewater treatment plants - Murska Sobota, Mežica, Sežana and Maribor and energy use of waste).
Structure of Investments and EBITDA in 2010 19 CAPEX = 65.9 million EUR EBITDA = 94.8 million EUR 15% 12% 21% 16% 72% 36% 28% Petroleum activity in the Slovene market Energy activity Petroleum activity in the markets of SE Europe Other
20 3. Investor Information
Shareholders Structure as at 15 March 2011 21 10 top shareholders of Petrol d.d., Ljubljana Shareholder Share in % 1 SLOVENSKA ODŠKODNINSKA DRUŽBA, D.D. 19.75% 2 KAPITALSKA DRUŽBA, D.D. 8.27% 3 NLB d.d. 6.06% 4 ISTRABENZ D.D. 4.05% 5 GB d.d., Kranj 4.04% 6 ZVON ENA HOLDING, D.D. 3.79% Others 32% Treasury shares 1% Slovene Indemnity Fund 20% 7 VIZIJA HOLDING, K.D.D. 3.44% 8 VIZIJA HOLDING ENA, K.D.D. 3.05% 9 NFD 1 DELNIŠKI INVESTICIJSKI SKLAD D.D. 2.96% 10 HYPO BANK D.D. 2.09% 11 OTHERS 42.51% Other institutional investors 22% Insurers 1% Banks 15% Kapitalska družba Group 9% Sum 100.00%
Petrol (PETG) on the Stock Exchange Ratios I. 22 Share price and transactions with Petrol share 400 Share price Transactions 2,500 360 2,000 Share price (EUR) 320 280 240 1,500 1,000 500 Transactions 200 0 4.1.2010 25.1.2010 16.2.2010 9.3.2010 30.3.2010 22.4.2010 14.5.2010 4.6.2010 28.6.2010 19.7.2010 9.8.2010 30.8.2010 20.9.2010 11.10.2010 2.11.2010 23.11.2010 14.12.2010 6.1.2011 27.1.2011 18.2.2011 11.3.2011 2009 2010 3. Jan. - 15. Mar. 2011 Number of shares 2,086,301 2,086,301 2,086,301 Average market capitalisation (EUR) 607,927,248 569,163,776 532,841,275 Capital yield (average y/y) -46.19% -6.38% -6.38% Dividend yield 2.02% 2.16% - Total yield -44.16% -4.21% -6.38%
Petrol (PETG) on the Stock Exchange Ratios II. 23 2009 2010 3. Jan. - 15. Mar. 2011 Average value of share (EUR) 291 273 255 Highest (EUR) 360 330 274 Lowest (EUR) 225 236 236 Value of share at the end of period (EUR) 322 272 236 Book value (EUR) 189 201 - P / BV (average share price/book value) 1.54 1.36 - P / E (average share price/eps) 56.36 14.82 - EPS (EUR) 5.17 18.41 - Average daily trading value (EUR) 98,925 72,293 59,739 Yearly trading value (EUR) 24,830,140 18,145,589 3,046,665 In total trade on LJSE Petrol ranked 6. place 4. place 7. place Petrol comprised 7.8% of the total Market Capitalisation on LJSE/shares and ranked fourth by Market Capitalisation as per 15.3.2011. 38,326 shareholders.
Appendix: Slovenian Pricing Model 24 Legal basis: Regulation on Oil Product Prices (Official Gazette RS No. 76/2010); valid until 8.10.2011. The regulation provides measures and mechanisms for defining the highest level of net selling prices. The conversion of selling prices is carried out each 14 days (on Mondays) in accordance with the shown formula. The established model selling price, valid as from Tuesday, is based on average quotations and EUR/USD exchange rate valid in the past 14-day period. Formula for the calculation of net selling prices: n CIFMedH i e i i P = 1 ρ t = + r + M n 1000 where it means: P t : model price of oil derivative in EUR/l ρ: density of oil derivative r: contribution for merchandise reserve in EUR/l M: profit margin of distributors i: daily data t: 14-days interval of current period n = 14 e: 1 USD = x EUR CIF Med H: exchange quotation of derivative Margin (M) is fixed and amounts to: Motor gasoline: 8.363 cent/litre, Diesel: 7.841 cent/litre, Gasoil 0.1: 5.162 cent/litre.
Contact Persons 25 Janez Živko, MBA Member of the Management Board, CFO Tel: +386 1 471 4415 Fax: +386 1 471 4660 Barbara Jama Živalič, M.Sc. Head of Investor Relations Tel: +386 1 471 4880 Fax: +386 1 471 4158 E-mail: janez.zivko@petrol.si E-mail: barbara.jama@petrol.si