INVESTOR PRESENTATION May 2018 @Grupa_Azoty #GrupaAzoty1Q18 GRUPA - - PowerPoint PPT Presentation
INVESTOR PRESENTATION May 2018 @Grupa_Azoty #GrupaAzoty1Q18 GRUPA AZOTY AT A GLANCE NO 3 IN NO. 2 IN THE EU IN MINERAL POLYAMIDE & AMONG THE FERTILIZERS MELAMINE IN EU LARGEST LARGEST BALANCED CHEMICAL CHEMICAL GROUP
@Grupa_Azoty #GrupaAzoty1Q18
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GRUPA AZOTY AT A GLANCE
IN MINERAL FERTILIZERS
IN COMPOUND FERTILIZERS AMONG THE LARGEST CHEMICAL COMPANIES IN THE EU LARGEST CHEMICAL GROUP IN POLAND NO 3 IN POLYAMIDE & MELAMINE IN EU NO 5 IN PLASTICIZERS & OXO IN EU BALANCED GEOGRAPHICAL PRESENCE MEMBER OF TRADE ASSOCIATIONS STABLE FINANCIAL POSITION LISTED ON WSE SINCE 2008 FEATURED IN MSCI AND FTSE INDICES RESPECT INDEX FTSE4GOOD EM INDEX
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State Treasury 33,00% ING OFE (Open Pension Fund) 9,96% TFI PZU S.A. 8,60% EBRD 2,87% Others 26,10% Opansa Enterprises Limited 9,50% Rainbee Holdings Limited 9,90% Norica 0,07%
Latest notification – 28th June 2017
GRUPA AZOTY AT A GLANCE
Norica
directly/indirectly
19,47%
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GRUPA KAPITAŁOWA GRUPA AZOTY
Vice President of the Management Board W.Szczypiński Director General Grupa Azoty S.A. Agro Segment Plastics Segment Organic Synthesis Segment Production Integration Wiceprezes Zarządu Józef Rojek Investments Growth Strategy Logistics M&A Member of the Management Board A.Kopeć Production assets Technical safety and infrastructure Environmental protection Social dialogue President of the Management Board W.Wardacki Management and HR Audit and Risk Communication CSR President of the Management Board Grupa Azoty POLICE Vice President of the Management Board P.Łapiński Finance IT IR Strategic and Technical Procurment Vice President of the Management Board G.Kądzielawski Infrastructure Research and development Energetic resources procurement
1.3 1.4 1.2 1.9 5.3 7.1 9.8 9.9 10.0 9.0 9,6
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
2011
2010 5
Consolidated revenues PLN bn
2013
tender offer 2012
* Up to 99.33% in 2018 due to the acquisition of employee shares
GRUPA AZOTY AT A GLANCE
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Logistics Production
ZMPP
Port
Grupa Azoty Police
Urea, NPK, NP, NS, Ammonia, TiO2
BBM
Terminal
Fosfory
NPK, P
Grupa Azoty ATT Polymers
PA 6
Grupa Azoty Puławy
AN, UAN, Urea, AS, Melamine, CPL
Grupa Azoty Siarkopol
Sulfur
Grupa Azoty S.A.
AN, CAN, ASN, AS, CPL, PA 6, POM Compounding
Grupa Azoty Kędzierzyn
AN, CAN, Urea, OXO, UAN Plasticizers
NPK, N, P, K
GRUPA AZOTY AT A GLANCE
@Grupa_Azoty #GrupaAzoty1Q18
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IN AGRICULTURE TO INCREASE HARVEST VOLUMES AND QUALITY PLASTICS AND AUTOMOTIVE INDUSTRIES AUTOMOTIVE, CONSTRUCTION, FOIL AND COATING, HOUSEHOLD APPLIANCES, FOOD PROCESSING AND TEXTILE INDUSTRIES OWN CONSUMPTION, SALES OF ELECTRICITY AND HEATING WATER TO LOCAL USERS CATALYST PRODUCTION, SUPPORT SERVICES, LABORATORIES LOGISTICS, MANAGEMENT, ENVIRONMENTAL PROTECTION
AN, CAN, NPK, AS, ASN UREA UAN, AMMONIA SULFUR MINING POLYAMIDE CAPROLACTAM OXO PRODUCTS MELAMINE, PIGMENTS TECHNICAL-GRADE UREA ELECTRICITY AND HEAT CATALYSTS, LABORATORY SERVICES, OTHER
BUSINESS
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South America 1% Africa 2% European Union 1 35% Asia 4% Other Europe 3% North America 0.5%
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65% 3% 25% 4% 3% Agro Fertilizers Plastics Chemicals Energy Other Activities
Poland 55%
34% 39% 26% 1% 67% 5% 28% 41% 25% 34% 0% 0% 32% 9% 58% 1% 1% 92% 7% 17% 4% 79%
1 Excluding Poland
BUSINESS
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RAW MATERIALS
Raw materials 4 980 Raw materials 5 487 Services 1 039 Services 990 Taxes 323 Taxes 338 Labour costs 1 300 Labour costs 1 399 Depreciation 518 Depreciatio n 587 Other 171 Other 165 2016 2017 BUSINESS (PLNm)
Gas 36% Other 17% Energy 9% Propylene 8% Potassium chloride 7% Phenol 7% Phosphate rock 6% Fine coal 6% Benzene 4%
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GRUPA AZOTY GROUP
PRICES OF NATURAL GAS DAILY QUOTATIONS
EUR/MWh USD/MWh 10 20 30 40 50 60 70 80
2018-01-01 2018-01-08 2018-01-15 2018-01-22 2018-01-29 2018-02-05 2018-02-12 2018-02-19 2018-02-26 2018-03-05 2018-03-12 2018-03-19 2018-03-26
5 10 15 20 5 10 15 20 25
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 PPX* TTF DA* GPL DA * Russia Federal Tariff Service USD / MWh * bez przesyłu
PRICES OF HARD COAL PRICES OF ELECTRICITY
PLN/MWh USD/t
140 150 160 170 180 190
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q42017 Q1 2018
IRDN FX
40 50 60 70 80 90 100
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q42017 Q1 2018
ARA
BUSINESS
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[tt]
EU 2 POLAND 1
MANUFACTURER AS UREA AN CAN ASN UAN AP/ NPK/ MIX
YARA
Grupa Azoty
Agrofert
Borealis
Fertiberia
Eurochem
Achema JSC
Timac Agro
Azomures
Petrokemija
5 000 10 000 15 000
Petrokemija Azomures Timac Agro Achema JSC Eurochem Fertiberia Borealis Agrofert Grupa Azoty YARA
Source: Fertilizers Europe
BUSINESS
(PLNm) 2016 2017 Jan- March 2017 Jan- March 2018 Change Q/Q Segment revenue including: 5 116 5 028 1 483 1 212
Nitrogen fertilizers, and ammonia 2 989 2 988 904 796
Compound fertilizers 1 669 1 680 432 327
EBITDA 600 484 252 168
EBITDA margin 12% 9.6% 17.0% 13.9%
PUŁAWY Nitric acid unit 1000 t/d Neutralisation unit 1300 t/d CAPEX – PLN 695m Fertilizers production line 600 t/d CAPEX – PLN 385m
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BUSINESS
TARNÓW Granulation Plant II 1200 t/d CAPEX – PLN 141m
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Poland 1 EU 5 Poland 1 EU 5
[tt] [tt] [tt] * Production capacities for phthalate plasticizers and terephthalate plasticizers ** Production capacities for 2-EH, N-butanol, isobutanol Source: Plasticizers Alkohols 2013 and Plasticizers (UE) 2013
BUSINESS
20 40 60 80 100 120 140 160 Azomures S.A. BASF SE Grupa Azoty Grupa Borealis OCI Melamine
Poland 1 EU 3
100 200 300 400 500 Perstorp OXO AB DEZA OXEA GROUP Grupa Azoty Polynt Evonik Basf ExxonMobil 100 200 300 400 500 Oltchim SA Grupa Azoty Perstrop OXO AB Ineos Oxea Group Basf
(PLNm) 2016 2017 Jan- March 2017 Jan- March 2018 Change Q/Q Segment revenue including: 2 295 2 789 687 769 12% OXO alcohols 452 557 136 158 16% Plasticizers 187 222 61 66 8% Urea (technical grade) 396 582 152 147
Melamine 443 476 119 132 11% Titanium white 295 370 85 106 25% EBITDA 271 348 107 127 19% EBITDA margin 12% 12.5% 15.6% 16.5% 0.9 pp
Melamine Puławy Titanium white Police OXO alcohols Kędzierzyn
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BUSINESS
[tt]
5 10 15 20 25 30 35 40
Automotive Films and coatings Machine building Electrical and electronic applications Consumer goods Household appliances Other
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Source: PCI Nylon, YellowBook 2015 Integrated [tt]
POLYAMIDE 6 APPLICATIONS IN KEY SEGMENTS*
%
BUSINESS
*Consumption in Europe Source: IHS 2017 50 100 150 200 250 Nurel Ube* Nyobe Rhodia Domo* Radici DSM* Aquafil* Grupa Azoty* Lanxess* BASF*
Poland 1 Europe 3
(PLNm) 2016 2017 Jan- March 2017 Jan- March 2018 Change Q/Q Segment revenue, including: 1 118 1 419 411 411 Polyamide 691 969 239 339 42% Caprolactam 329 372 149 50
EBITDA
221 66 60
EBITDA margin
15.6% 16.1% 14.6%
2016 2017
Guben Tarnów
+80 tt
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BUSINESS
[tt]
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STRATEGY
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STRATEGY
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“With the execution of ambitious investment projects in mind, which would support Grupa Azoty’s business growth and ensure the highest level of long- term financial security, the Company decided not to set a lower limit for the dividend payout ratio, and to maintain the upper limit at 60%. Our ambition is to maintain dividend payout close to the upper limit, while ensuring financial security and consistent implementation of other elements
Dividend for the year Net profit (PLN '000) Dividend amount (PLN '000) Dividend per share Dividend payout ratio
2008 61,935 39,899 PLN 1.02 64% 2012 250,692 148,793 PLN 1.50 59% 2013 44,117 19,839 PLN 0.20 45% 2015 209,055 83,324 PLN 0.84 40% 2016 224,775 78,364 PLN 0.79 35% 2017
recomendation
354,792 123,994 PLN 1.25 35%
STRATEGY
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GRUPA AZOTY GROUP
2015 2016 2017 Plan 2018
Rozwój biznesu Utrzymania biznesu Mandatowe Zakup Gotowych Dóbr Pozostałe Komponenty
(PLNbn) Grupa Azoty S.A. 0.4 Grupa Azoty PUŁAWY 0.6 Grupa Azoty POLICE 0.2 Grupa Azoty ZAK 0.2 Other 0.2 Plan 2018 1.06 1.24 1.07 1.6 By type By company
* as per the “Acquisition of property, plant and equipment, intangible assets and investment property” item of the consolidated statement of cash flows
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INWESTMENTS Pulgran/PulgranS at Puławy Upgrade
ammonia unit at Police New CHP plant at Kędzierzyn – phase 1 Flue Gas Treatment Unit at Tarnów Co-financed under the Norwegian Financial Mechanism 2009–2014 Polyamide Unit at Tarnów
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GRUPA AZOTY GROUP
Plan 2018
Komponenty Pozostałe Zakup Gotowych Dóbr Mandatowe Utrzymania biznesu Rozwój biznesu
(PLN ‘000)
Project name Company Project budget in 2018 Upgrade of steam generator to reduce NOx emissions ZAP 44,000 Exhaust gas treatment unit and upgrade of EC II CHP plant ZCH 21,000 Upgrade of synthesis gas compression unit supplying ammonia plant ZAK 50,807 Raw gas compressor (GHH) ZAK 17,678 Upgrade of partial combustion unit at Ammonia Department ZAK 14,000 Facility for production of ammonium nitrate-based granulated fertilizers ZAP 131,280 Chemical Technology and Development Centre ZAT 68,270 Expansion of production capacity of technical-grade nitric acid unit ZAT 58,090 Upgrade of existing and construction of new nitric acid units, and facilities for neutralisation and production of new nitric acid-based fertilizers ZAP 51,290 Special Esters I ZAK 37,505 Change of phosphoric acid production method (DA-HF technology) ZCH 33,295 Utilisation of purge gases from ammonia synthesis unit ZAT 22,350 Increasing the volumes of and optimising liquid CO2 production ZAP 19,200 Expansion of water demineralisation station ZAP 13,112 Pilot humic acid unit ZAT 11,830 Purchase and installation of synthesis compressor ZAP 10,392
INVESTMENTS
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@Grupa_Azoty #GrupaAzoty1Q18
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(PLNm)
FINANCIAL HIGHLIGHTS
* In 2013 adjusted for gain on bargin purchase of Grupa Azoty PUŁAWY, Grupy Azoty SIARKOPOL, AIG and impairment loss on the polyoxymethylene plant. In 2014 adjusted for impairment loss on the phthalic anhydride unit recognised. In 2015 adjusted for impairment loss on the benzene derived c-non production unit, fat processing plant, and carbon disulfide plant In 2016 adjusted for estimated impairment loss recognised by AIG, impairment loss on the AIG field and fat processing plant. In 2017 - fat processing plant. ** Restated following application of uniform accounting policies across Grupa Azoty (see Section 2.2.c of the Supplementary information to the financial statements)
Jan-March 2017 Jan- March 2018 Q/Q
2 687 2 497
314 238
11.9% 9.5%
pp. 453 403
16.9% 16.1%
pp. 255 188
2014 2015** 2016 2017 Jan- March 2018
(PLNm)
Revenue 9,898 10,008 8,956 9 617 2 497 EBIT 302 824 486 597 238 EBIT margin 3% 8% 5% 6% 9.5% EBITDA 822 1,309 1,006 1 187 403 EBITDA margin 8% 13% 11% 12.3% 16.1% Net profit 265 678 375 489 188
453 403 462
16,9% 16,1%
1Q2017 1Q2018
1 246 822 1 309 948 1 187 775 862 1 353 1 034 1 262 12,7 8,3 13,1 10,6 12,3 2013 2014 2015 2016 2017
EBITDA EBITDA (skorygowana)* Marża EBITDA
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DANE FINANSOWE
(PLNm)
100 200 300 400 500
500 1 000 1 500 2 000 2 500
Revenue Net profit (right axis) 200 400 600 EBITDA
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GRUPA AZOTY GROUP
FINANCIAL RATIOS
Q1 2017 Q1 2018 Profitability ratios EBIT margin (%) 11.9 9.5 EBITDA margin (%) 16.9 16.1 ROCE (%) 3.3 2.4 ROE (%) 3.5 2.5 Liquidity ratios Current ratio 2.0 1.9 Debt ratios Total debt ratio (%) 35.2 36.2 Net debt (PLNm) 439 604 Net debt/12M EBITDA 0.50 0.53 368 1393
purpose credit facilities corporate loans
(mln PLN)
corporate loans
credit facilities
* Following entry into a new EUR 145m loan agreement with EIB on January 25th 2018, the available funds (undrawn corporate facility limits) rose by approximately PLN 600m.
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Part or section title
10 20 30 40 50 60 70 80 90 100 110 500 1 000 1 500 2 000 2 500 3 000 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17
Wolumen Cena
Growth since June 30th 2008: Change since January 3rd 2018: 221%
PLN 113.00 PLN 6.00 Max (December 8th 2015) Min (February 3rd 2009)
DISCLAIMER
The information contained herein has been prepared by the Grupa Azoty Group (“the Group”) solely for the purpose of presentation to investors (“the Presentation”). By participating in the meeting at which this Presentation is given or by referring to this Presentation you agree to the restrictions and disclaimers presented below. This Presentation does not constitute, or form any part of, and should not be considered as, an offer to sell or invitation to subscribe for, or as a guarantee of purchase or other acquisition of any securities of any of the Group companies. Neither this presentation nor any part hereof may form the basis of, or be relied upon in connection with, any subscription for or acquisition of any securities of the Group companies. Neither this Presentation nor any part hereof may form the basis of, or be relied upon in connection with, any contract or commitment or investment decision relating to any securities of the Group companies. This Presentation does not constitute a recommendation regarding any securities of the Group companies. No statement or assurance, express or implied, has been made by or on behalf of the Group or any of its shareholders, members of its bodies, officers, employees, agents or advisers or any other person as to the accuracy, completeness or reliability of the information or opinions contained in this Presentation. The discussion
can be identified by the use of such words as "expect", "intend", "plan", "believe", "anticipate", "will", "aim", "can", "would", "could", "continue" or similar
development plans relating to the Group). All forward-looking statements contained in this Presentation relate to matters involving known and unknown risks, issues that are impossible to predict, and other factors. Actual results and achievements of the Group may materially differ from those given in past declarations, and from the Company’s past performance and achievements. Forward-looking statements are made based on various assumptions about future events, including assumptions regarding the current and future business strategies of the Group and its future business environment. Although the Group believes that its estimates and assumptions are reasonable, they may prove to be incorrect. The information, opinions and forward-looking statements contained herein are valid only on the date of this Presentation and are subject to change without notice. Unless required by law, the Group and its advisors are not obliged to publish any updates or modify any information, data or statements contained in this Presentation in the event of a change to the Group’s strategy or plans or the occurrence of any facts
financial performance, as well as forecasts, events and indicators relating to the Group and the Group companies, are the current and periodic reports released by the Group companies to comply with the applicable disclosure requirements under Polish law. Neither the Group nor any of its shareholders, members of its bodies, officers, employees, agents or advisers nor any other person shall be liable for any loss arising due to the use of this Presentation or its contents, or otherwise in connection with this Presentation. Neither the Group nor any of its shareholders, members of its bodies, officers, employees, agents or advisers nor any other person is required to provide the recipients of this Presentation with any additional information or to update this Presentation. This Presentation contains information on the chemical industry in Poland and abroad, including information on the market share of the Company and some of its
Group. This Presentation is not for distribution to or use by any person or entity in any jurisdiction where such distribution or use would be contrary to local law or would
Presentation nor any part hereof may be copied or transmitted into the United States, and cannot be disseminated, directly or indirectly in the United States. Failure to comply with this restriction may constitute a violation of US securities laws. Persons who come into possession of this Presentation should observe all the above limitations. Any securities referred to herein have not been and will not be registered under the US Securities Act of 1933. Any such securities may not be
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