Presentation of Results for Q and 2011 of Azoty Tarnów Group

Transcription

1 Presentation of Results for Q4 and of Azoty Tarnów Group

2 The Management Board of Azoty Tarnów Andrzej Skolmowski Vice-Chairman Krzysztof Jałosiński Vice-Chairman Jerzy Marciniak Chairman of the Board Witold Szczypiński Vice-Chairman Artur Kopeć Member of the Board

3 The Vision of Azoty Tarnów Group The increase in value of Azoty Tarnów Group is achieved through both internal development and strategic alliances, mergers and acquisitions. If the market conditions are favourable, the Group will continue to play an active role in the consolidation process of the chemical sector in the region. The outer development will aim at the increase of the Group value resulting from the increase of diversified activities. Azoty Tarnów Group will observe the principles of sustainable development reducing its impact on the environment and taking into consideration the needs of the local community. 3

4 Azoty Tarnów Group in Grupa Kapitałowa w roku Revenue million PLN Equity million PLN Net profit 498 million PLN Average employment people 4

5 Significant Achievements in Issue of Shares to Support the Implementation of Strategic Objectives Public tender offer for 66% shares of ZCh Police S.A.: million PLN Issuing the shares of C series: 62.5 million PLN Purchasing additional shares of ZAK S.A. (4.86%): 2.1 million PLN Executing technological investments as a continuation of the investment programme presented during the IPO in the following areas: modernization, optimization, increasing production capacity. 5

6 Shareholders in Shareholder 21 Mar Aktualna struktura akcjonariatu 15 April 12 Aug 23 Sept 31 Oct 28 Dec State Treasury Pozostali Skarb Państwa ING Otwarty Fundusz Emerytalny 36,31% ,5% (Pension Fund) Aviva Otwarty Fundusz Emerytalny Aviva BZ WBK (Pension Fund) ING Otwarty Fundusz Emerytalny 12,92% 31 Dec PZU S.A. (including PZU Życie S.A.) Generali Otwarty Fundusz Generali Otwarty Emerytalny (Pension Fund) Fundusz Polskie Górnictwo Emerytalny Naftowe PZU S.A. (w tym 1.23 Aviva Otwarty i Gazownictwo 5,6% S.A. PZU Życie S.A.) Fundusz Nafta Polska S.A. w likwidacji 5,26% Emerytalny Aviva 49.8 (in liquidation) BZ WBK 8,4% Others

7 Increasing Production Capacity Polyamide 6 Caprolactam Compounds Nitrate fertilizers 229% 6% 4% 66% 28 tt 45 tt 92 tt 95 tt 11 tt 4 tt 6 tt 2 tt 444 tt 569 tt 737 tt Completed in Q Completed in Q Changing the production capacity in the Group In progress Completed in Q2 7

8 The Leader Among Chemical Groups in Poland Fertilizers Poland: No. 1 in multi-component fertilizers * No. 1 in mineral fertilizers ** No. 1 in fertilizers containing sulphur Europe: No. 2 in multi-component fertilizers No. 3 in mineral fertilizers Titanium White No. 1 in Poland No. 11 in Europe Plasticizers No. 1 in Poland No. 4 in Europe OXO Alcohols No. 1 in Poland No. 7 in Europe Polyamide (PA6) No. 1 in Poland No. 5 *** in Europe Polyoxymethylene (POM) No. 1 in Poland *Multi-component fertilizers in total (AP, NPK, PK) **Multi-component fertilizers + nitrogen fertilizers ***Among integrated producers 8

9 Favourable Time in Chemical Sector Environment Continuation of positive trends in target markets Very good results in fertilizer sector Boom in plastics, oxo alcohols and titanium white Activities in Azoty Tarnów Group Increasing the scale of operations Continuation of activities in the areas of synergy and operational match of Azoty Tarnów Group: Diversification of product portfolio Implementation of restructuring and internal reorganization plan in the companies constituting the Group Further reorganization of financing in the Group IT standardization in the Group 9

10 Successful Financial Restructuring ZAK S.A. Date m PLN Initial situation: the risk of calling in the loan for immediate payment after loan default Signing loan agreements Q Repayment of debt for gas purchases (completion) Q1 8.6 ZCh POLICE S.A. Repayment of loan to ARP (Agency for Industry Development) and quitting the public aid Q4 15. Repayment of public and legal liabilities Q Signing loan agreements Q4 15. Repayment of debt for gas purchases (completion) Q At the moment ZAK, POLICE and their subsidiaries do not have any liabilities subject to restructuring. Terms and conditions of financial contracts (inclusive of loan agreements) are uniform for the whole Azoty Tarnów Group. 1

11 Volume in thousands Activities Appreciated by the Market Successful SPO rights issue 99.21% reduction Listed on the Respect Index Numerous awards for products and operations of Azoty Tarnów its subsidiaries 7, Pre-emptive rights Volume Price Rights to shares Volume Price PLN 45 6, 5, 4, 3, Jul-11 Jul-11 Jul-11 Jul-11 Jul-11 Jul Aug-11 Aug-11 Aug-11 Aug-11 Aug Price 2, 1, , Max (8 March ) Min (23 January 29) PLN 4.41 PLN 6.5 Volume Price 11

12 Recognized and Awarded - Azoty Tarnów Ambassador of Polish Economy in category The Creator of the 21st Century The Leader of Polish Export The Pillar of Polish Economy IT Leader The Pearl of Polish Economy Azoty Tarnów Group Distinction in the contest The Master of Business for Azoty Tarnów Group Business Gazelle " for PTK Koltar Sp. z o.o. The Title of Responsible Employer for ZAK SA

13 Creator and Patron of Cultural Events The Organizer of Azoty Tarnów Grand Festival A Festival Patron - Azoty Tarnów - Main Partner of International Jazz Contest A Partner of the Polish Festival of Comedies TALIA A Patron of the International Festival of Music Found The Cup of Azoty Tarnów in speedclimbing for amateurs

14 Key Companies of Azoty Tarnów Group 66% 93.48% 1% 63.27% 1% 1% Share of Azoty Tarnów

15 Our Brands Oxoplast Oxoplast IB (DIBP) Oxoplast O (DEHP) Oxoplast PH (DPHP) Oxoplast OT 15

16 PLN/t EUR/t Market Environment - Fertilizers and Raw Materials * Increase in grain prices by 43% (on average) Increase in nitrogen fertilizer prices by 44% (on average) Quotations of AN, AS, Rape and Wheat * compared to 21 Rape PLN/t Ammonium Sulphate AN EUR/t Calcium Ammonium Nitrate CAN EUR/t Wheat PLN/t Ammonium Nitrate AN EUR/t 16

17 Market Environment - Phosphatic Fertilizers and Raw Materials * Increase in ammonia prices by 45% (on average) Increase in phosphorite prices by 47% (on average) Increase in Phosphatic Fertilizers prices by 32% (on average) Quotations of NPK, DAP, Phosphorite and Ammonia NPK USD/t DAP USD/t Ammonia USD/t Phosphorites USD/t * compared to 21 17

18 Market Environment - Organic Products and Plastics * Increase in petroleum raw materials prices by 14% (on average) Increase in plastics prices by 24% (on average) Increase in OXO Alcohols prices by 16% (on average) Price Quotations of Benzene, CPL, PA6, DEHP, 2-EH and Propylene * compared to 21 Caprolactam EUR/t PA6 EUR/t DEHP EUR/t 2-EH EUR/t Benzene EUR/t Phenol EUR/t 18

19 Applications 1% 8% 6% 4% 2% Others Pipes Packaging (foil) Other extruded details Electronic and electrical industry Car Industry Others Elastomers Floor coverings Door and window PCV frames Cables Films and foils Plastics Others Inks Paper Industrial coatings Plastics Architectonic coatings % PA6 consumption by sectors Plasticizers Consumption Titanium white consumption Source of data: market reports 19

20 Summary of Financial Data Compared to 21 Revenue in increased by 181% In EBITDA was 5% higher than in 21 Net profit in was higher by 44 million PLN Annual average appreciation of EUR to PLN zloty: 3.1% Annual average depreciation of USD to PLN: 1.8% Annual average interest rate WIBOR 1M increased by 75 bp New shares issue proceeds: 62.5 million PLN 2

21 Results of Azoty Tarnów Group million PLN 21 Q1 Q2 Q3 Q4 Change y/y Total revenue % EBIT % EBITDA % Net profit % Net profit* % 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % Revenue from sales Revenue form sales * Corrected by a single event 1% 9% 8% 7% 6% 5% 4% 3% 2% 1% % EBITDA EBITDA Others Police Capital Group ZAK Capital Group 2% 2 Azoty Tarnów 1% 61 % million PLN 1% 9% 8% 7% 6% 5% 4% 3% 32 Net profit Net profit 21

22 Results of Azoty Tarnów million PLN 21 Q1 Q2 Q3 Q4 Change y/y Total revenue % EBIT % EBITDA % Net profit % EBITDA growth compared to growth drop 2 1 million PLN Sales price Sales volume Other revenue Consumption price Consumption volume 322 Other costs 22

23 Azoty Tarnów Group Financial Data Assets year to year in million PLN Tangible assets 66.9% Stock 13.2% Receivables 14.6% Other current assets 5.3% 21 Change Tangible assets % Current assets % Inclusive of cash and cash equivalents % Total assets % Liabilities year to year in million PLN Equity 63.7% Credits and loans 8.% Other current assets 28.3% 21 Change Equity % Liabilities % Inclusive of loans and borrowings % Total liabilities % 23

24 Cash Flow (in million PLN) Cash flow 21 Cash flow from operating activities Cash flow from investment activities Cash flow from financial activities Cash at the end of period inflows outflows 4 m PLN Cash at the beginning of period Profit after tax 736 Depreciation and other items Revenue form share issue Outlays on purchasing shares corrected by the taken over cash Outlays on tangible assets Loan repayments with servicing costs Cash at the end of period 24

25 Strong Position in the Target Markets Over 8% of the revenue is generated by sales to EU countries North America 1% European Union * 39% Other Europe 6% +4% Asia 5% -3% Poland 48% South America 2% Africa.5% +1% 21 * Without Poland 25

26 Billion PLN Sales Split by Segments 21/ 6 5 Others 4 181% Pigments 3 OXO Alcohols 2 1 Plastics Fertilizers 21 26

27 Diversified Business Profile Fertilizers Plastics Nitrate 23% Phosphatic * 13% Urea 6% Ammonium sulphate 4% Others 2% 48% % million PLN Polyamide 16% Polyoxymethylene 1% Caprolactam 3% Others 3% Pigments* 3% 6% 2% OXO Titanium white 2.7% Others.3% * Since 24 August Revenue OXO Alcohols 14% Plasticizers 5% Others 1%

28 Sales by Products of Azoty Tarnów Group Year to year in million PLN Quarterly in million PLN 21 Change Q4 21 Q4 Change Fertilizers: % % Nitrate fertilizers % % Phosphatic fertilizers* Engineering plastics % % Caprolactam % % OXO Alcohols % % Plasticizers % % Pigments* * Since 24 August 28

29 Business pro forma Sales of Main Products * of Azoty Tarnów Group pro forma ** Mineral fertilizers generated over 6% of total revenues Organic products and plastics generated over 4% of total revenues 21 Phosphatic fertilizers 27% Nitrate fertilizers 29% Plastics and semi-products for their manufacturing 19% Pigments 5% Others 3% OXO Alcohols and Plasticizers 17% Phosphatic fertilizers 27% Nitrate fertilizers 29% Plastics and semi-products for their manufacturing 2% Pigments 5% Others 3% OXO Alcohols and Plasticizers 16% * 1% sales split of Azoty Tarnów Group main products, pro forma ** Azoty Tarnów Group in current composition since January 21 29

30 Business pro forma Mineral Fertilizers pro forma Year to year (m PLN) Nitrogen Fertilizers 52% Phosphatic fertilizers 48% million PLN Revenue from sales Amount Price + Quarter (m PLN) Nitrogen fertilizers 54% Phosphatic fertilizers 46% million PLN Amount Price 3

31 Business pro forma Plastics and Semi-Products for their manufacturing pro forma Year to year (m PLN) Engineering plastics 73% Raw materials for their manufacturing 27% 1 5 Revenue from sales million PLN 21 Amount Price Quarter (m PLN) Engineering plastics 62% Raw materials for their manufacturing 38% million PLN 21 Amount Price + 31

32 Business pro forma OXO Alcohols and Plasticizers pro forma Year to year (m PLN) OXO Alcohols 73% Plasticizers 27% Revenue from sales million PLN 21 Amount Price + Quarter (m PLN) OXO Alcohols 76% Plasticizers 24% million PLN Amount Price + 32

33 Business pro forma Titanium White pro forma Year to year (m PLN) Revenue from sales million PLN 21 Amount Price Quarter (m PLN) million PLN 21 Amount Price 33

34 Business pro forma Purchase of Main Raw Materials* by Azoty Tarnów Group Natural gas constitutes over 3% of raw materials purchases Petroleum products constitute over 24% of raw materials purchases Propylene 14% 21 Phosphorites 9% Potassium Salt 12% Propylene 14% Phosphorites 13% Potassium Salt 11% Natural gas 3% Electricity 1% Natural gas 28% Electricity 9% Coal 7% Coal 6% Others 18% * 1% purchase of main raw materials Others 19% 34

35 Financial Results in the Last 5 Years 7 Revenue EBITDA EBITDA * Net result Net result * million PLN * Corrected by a single event Flotation at the WSE Acquisition of shares in ATT Polymers and ZAK S.A Acquisition of shares in ZCh Police S.A. and ZAK S.A. 35

36 Revenue in million PLN Azoty Tarnów Group vs WIG Chemia SYNTHOS AZOTY TARNÓW CAPITAL GROUP PUŁAWY CAPITAL GROUP CIECH CAPITAL GROUP

37 Thank you very much for your kind attention