38
Company update June 2017
Company update
June 2017
1
Contents
• Hellenic Petroleum Overview
• Investment Highlights
• Industry Update & Market Developments
• 1Q17 Results
• Appendix
(1) Includes other activities (exploration and production) which was -€6m in 2016, -€2m in 2015 and -€7m in 2014.
(2) Includes 35% share of Adj. Net Income of DEPA Group adjusted for one-off items. As per ‘Share of profit of investments in associates and JVs’ as reported in financial
statements.
Petrochemicals 13%
Marketing13%
Refining, Supply & Trading
74%
Montenegro
Serbia
Bulgaria
FYROM
Greece
Cyprus
Elefsina
Aspropyrgos
Thessaloniki
OKTA
Refinery
Marketing
Storage terminal
Company overview
Key financials FY16
€731m(1)
Refining, Supply & Trading
Marketing
3 refineries, 65% Greek market share (by capacity):
- Elefsina (100kbp/d, NCI 11.3)
- Aspropyrgos (148kbp/d, NCI 9.7)
- Thessaloniki (93kbp/d, NCI 6.9)
14.8MTmn of production in 2015 (c. 103% utilisation)
50-60% of sales exported
2014 2015 2016
Refining, Supply & Trading 253 561 536
Marketing 90 107 101
Petrochemicals 81 93 100
Other(1) -7 -2 -6
Total 417 758 731
Share of Adj. Net Income of
associates(2) 28 22 29
Domestic market
- 30% market share across retail, commercial, aviation and bunkering
- Total sales volume c. 3.5MTmn
- 1,739 service stations through marketing subsidiary (EKO and BP brand)
International market
- 300 service stations across Cyprus, Montenegro, Serbia, Bulgaria and FYROM
- Total sales volume c. 1.2MTmn
Petrochemicals
220kt of polypropylene (PP) capacity vertically integrated with ELPE’s
refineries
>50% of domestic petrochemicals market share
60-65% of sales are exports
Sales €6,680m
Adj. EBITDA €731m
Net Debt €1,759m
Net Debt /
Adj. EBITDA2.4x
Paneuropean Oil
and Industrial
Holdings S.A.
Hellenic Republic
Asset Development
Fund
Free Float
Hellenic Petroleum ownership structure
45.5% 35.5% 19.0%
FY16 Adj. EBITDA
Key Business Areas Operational Footprint
Adj. EBITDA Breakdown (€m)
2
Key financials
€ million, IFRS 2010 2011 2012 2013 2014 2015 2016 1Q17
Income Statement
Sales Volume (MT’000) - Refining 14,502 12,528 12,796 12,696 13,538 14,258 15,618 4,009
Net Sales 8,477 9,308 10,469 9,674 9,478 7,303 6,680 2,078
Segmental EBITDA
- Refining, Supply & Trading 338 259 345 57 253 561 536 190
- Petrochemicals 50 44 47 57 81 93 100 28
- Marketing 114 66 53 68 90 107 101 13
- Other (incl. E&P) -28 -6 0 -5 -7 -2 -6 -2
Adjusted EBITDA * 474 363 444 178 417 758 731 229
Adjusted associates’ share of profit 30 67 69 57 28 22 29 31
Adjusted Net Income * 213 140 229 -120 2 268 265 126
Balance Sheet / Cash Flow
Capital Employed 4,191 4,217 4,350 3,905 2,870 2,913 3,903 4,039
Net Debt 1,659 1,687 1,855 1,689 1,140 1,122 1,759 1,783
Capital Expenditure (incl. refinery upgrades) 709 675 521 112 136 165 126 18
(*) Calculated as Reported less the Inventory effects and other non-operating items3
Refining, Supply & Trading economicsIntegrated supply chain management yields improved results
Trading
(sales premia)
Refining
(Med benchmark + performance)
Domestic market
8.5 MT
Exports, 3rd parties
7 MT
ELPE
Refining System
16 MT
NCI: 9.6
11%
89%
Low sulphur
High sulphur
55%
12%
25%
8%
Fuel Oil
Other
Gasoline
Middle Distillates
Marketing
(Cost +)
Domestic
3.5MT
International
2MT
Petchems
(Benchmark Pricing plus premia)
Domestic and international
Markets (PP + BOPP – 225kt)
4
(1) Does not include OKTA sales which is mainly wholesale.
Source: Company information.
Montenegro
Serbia
Bulgaria
Greece
FYROM
Turkey
40
No. of petrol stations (2016)
54
86
1,739
94
Cyprus
Elefsina
Aspropyrgos
Thessaloniki
25
5
Marketing operationsLeading domestic market position and regional footprint increasing integrated route to market
4.637
4.070
3.361
2.971 3.052
3.494 3.538
2010 2011 2012 2013 2014 2015 2016
Sales – Greek subsidiaries (‘000MT)
1.051 1.042 1.072 1.072 1.0791.178
1.129
2010 2011 2012 2013 2014 2015 2016
Cyprus Bulgaria Serbia Montenegro
Sales – International marketing subsidiaries(1) (‘000MT)
€101m
International56%
Domestic 44%
2016 Adj. EBITDA
+6%
CAGR
OKTA
272
228
952
52
Propane Propylene Polypropylene BOPP
PetrochemicalsOperations centred on utilising refining assets for higher value extraction; trading geared to
export markets
6
(1) as of FY16.
Source: Platts, Company information.
Overview
Production and marketing of Polypropylene (PP), BOPP Film, polymers and solvents through the further processing of refinery production
Vertical integration
85-90% of total production integrated using
propylene produced at Aspropyrgos
Best-in-class Polypropylene production technology
Lyondell Basell’s Spheripol technology
Competitive advantages
Margin contribution by product (€/T)(1)
Geographical diversification
>60% of sales exported to Turkey, Italy, Iberia and Eastern Mediterranean where petchems
are used as raw materials in the manufacturing industry and other applications
Strong domestic market share
Domestic market share in petchems > 50% in all products, produced or traded
Low exposure to refining margins
PP margins largely unrelated to refining margins
Domestic and
International market
Aspropyrgos
splitter
Thessaloniki
PP plant (220 kt)
PPPropane
Propylene
(polymer
grade)
BOPPBOPP film
plant (26 kt)
c.90%
c.10%
90%
Imports 10%
Petrochemicals value chain
2013-18 Strategy UpdateUtilise strong refining and logistics asset base to consolidate position; cash flow for balance sheet
de-resking remains key priority
1
2
5
Rebalance market position and
de-risk business model
Strengthen financial position
3Continue competitiveness
improvement
4 Manage business portfolio for
value
Integrate and realise benefit of
investments
• Vertical integration
• Increased exports (50%)
• Operating KPIs
• Solomon benchmarks
• Gas & Power
• Exploration assets in Greece
• Capture positive refining cycles
• EBITDA €500-700m
STRATEGY TARGETS
• Business model and balance sheet de-
risking
• Cost of funding
7
0
200
400
600
800
2020201920182017 2022
Credit Facilities - LiquidityStrong cash flow generation enables gross debt reduction; outstanding 8% notes fully repaid on 10
May; Group continuous to explore opportunities in DCM for cost and maturity profile optimization
Gross Debt overview (€m)
35%
1Q17* Term Credit Lines Maturity Profile (€m)
8
Debt Capital MarketsBanksEIB
20211Q17
2,866
FY15
3,231
-14%
1Q17*
2,771
EIB
Debt Capital Markets
Banks (uncommitted)
Banks (committed)
25%
30%
9%
36%
40%
25%
9%
25%
(*) Pro-forma for Eurobond 2017 repayment
Balance Sheet Strategy
9
• Current business model assumes Net Debt of €1.5-2.0 bn depending on prices
• Gearing ratio targets for monitoring and compliance purposes
• Net debt / Adj. EBITDA target of 2.0-2.5x(1)
• Target weighted average life of debt of > 3 years, with c.50% of net debt issued in capital markets
Funding1
• Maintain liquidity at c.20% of gross debt (depending on supply market conditions)
• Reduction of negative cost of carry
• Continue to utilise international banking structure for operational and risk management purposes
Liquidity2
• Recently upgraded refineries allow normalisation of capex to c. €100-150 m p.a.
• Proceeds from material divestments to reduce debtCapex/Divestments3
• €0,20/share proposed in FY16
• Plan to resume annual distribution in line with statutory framework and performanceDividends5
• De-risk working capital position and increase optionality
• Explore market opportunities to improve cash flows and optimise costs/impact of asset conversion
cycle (e.g. contango trades and securitisation)
Working capital4
(1) Proforma leverage excl. the carrying value of Investments in Associates from Net Debt.
Contents
• Hellenic Petroleum Overview
• Investment Highlights
• Industry Update & Market Developments
• 1Q17 Results
• Appendix
10
High complexity interconnected refining system and logistics assetsDiversified asset base in two refining hubs, benefiting from system interconnectivity and global
LP optimisation vs. standalone/single refinery
Group refinery footprint and operating model
11
Aspropyrgos
148kbpd
93kbpd
Elefsina
100kbpd
Naphtha for
reforming
SRAR (1) & VGO (1)
for upgrading
Naphtha for
reforming
Thessaloniki
SRAR* for
upgrading
(1) SRAR (Straight Run Atmospheric Residue) and VGO (Vacuum Gas Oil) are intermediate products.
(2) Refined products output / crude feed capacity.
Source: Company information.
Note: CCR: Continuous Catalytic Reforming; FCC: Fluid Catalytic Cracking; FXC: Flexicoker; HC: Hydrocracking; VDU: Vacuum Distillation Unit.
Aspropyrgos
Elefsina
Thessaloniki
Refinery
System
Capacity(2)
(MTmpa / kbpd))
8.0 / 148
4.5 / 100
3.5 / 93
16.0 / 341
Latest
upgrade
2004
2012
2011
n/a
Next
maintenance
2018
2019
2020
n/a
Nelson
Complexity
Index (NCI)
9.7
11.3
6.9
9.6
HC
FCCHC
FXC
CCR
VDU
10.9
8.4
High complexity interconnected refining system and logistics assetsConsistent benchmark overperformance supported by high complexity system with crude /
product flexibility and significant wholesale margin capacity
Consistent benchmark overperformance
$/bbl
(1) System benchmark calculated using actual crude feed weights.
(2) Includes wholesale trading premia and propylene contribution which is reported under Petchems.
Source: Company information.12
Sweet / sour crude (%)
67%57% 54% 56% 57% 56% 59%
69% 63% 56% 62% 68%
33%43% 46% 44% 43% 44% 41%
31% 37% 44% 38% 32%
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Sour Sweet
Sales breakdown (%)High value product yield (%)
53% 43%
36% 34% 34% 29%
26%
21% 20% 17% 17%
15%
21% 36%
44% 49% 49% 56%
2011 2012 2013 2014 2015 2016
Domestic Aviation & Bunkering Exports
14% 13% 12% 10% 10% 10% 13% 11% 14% 11% 13% 13%
51% 52% 53% 54% 54% 57% 52% 53% 49% 52% 52% 52%
24% 23% 24% 24% 23% 15% 22% 22% 24% 22% 21% 21%
5% 5% 5% 4% 5%3%
5% 5% 5% 5% 5% 5%6% 7% 6% 8% 8% 15% 8% 9% 8% 10% 9% 9%
FO Middle Distillates Gasoline LPG Naphta/Other
ELPE realised margin(1) (2)
12.5 15.4 MTmn
8,0 7,5
10,2 10,2
12,3
8,3
11,8
9,510,2
8,6
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16
Benchmark margin
13
Improved crude supply optionality and supportive regional pricing dynamicsCoastal location and private port facilities allow crude supply optionality
Source: Platts, Company information.
-0,50
0,00
0,50
1,00
1,50
2,00
2,50
2012 2013 2014 2015 2016
Recovery in Brent-Urals spread points to current
oversupply in the Med…($/bbl)
CPC25%
Iraq23%
Iran16%
Urals17%
Egypt10%
Saudi5%
Other2%
Import blends and countries of origin
Crude supply sourcing optionality
Black
Sea
Middle
East
North
Africa
Urals34%
Iraq28%
CPC20%
Egypt9%
Libya2%
Other7%
2015 2016
Assets strategically located for exports in diesel-short Med region…
Diesel / Gasoil surplus (2020) Diesel / Gasoil deficit (2020)
Source: KBC Advanced Technologies, Company information.
Key Diesel / Gasoil balances in the Med region, kb/d (2020)
14
Exports sales (MT ‘000)
2.377
4.501
5.518
6.5896.942
8.644
2011 2012 2013 2014 2015 2016
% of
total
sales21% 36% 44% 49% 49%
Portugal Spain
Morocco Algeria
France
ItalyCroatia
Bosnia
Serbia
FYROM
Albania
Greece
Turkey
Cyprus
Syria
Lebanon
Libya
-51
-114 -69
-441 -35
-11
-13-12
-18-3
-260
-11+49
Israel+6
-162
Egypt
Slovenia
+79
56%
+73
+23
-8
+20
-37
Tunisia
-4 Montenegro
11.413
10.1259.267
7.727
6.599 6.669 7.091 7.038
2009 2010 2011 2012 2013 2014 2015 2016
Domestic market demand(1) (MT ‘000)Domestic market shares
…complementing a leading domestic business with performance leveraged to
Greek macro improvement
(1) Does not include PPC and armed forces.
Source: Ministry of Environment & Energy.15
+1%
+7%
-42%
HellenicPetroleum
c.65%
Other
Refining
(16MTmn of capacity)
Marketing
(3.5m MTmn of sales)
HellenicPetroleum
>30%
Other
-1%
(1) Global benchmarking study conducted on a bi-annual basis; results displayed for C&S Europe (31 refineries).
Source: Company information.
16
ELPE positioning in Solomon Benchmarking(1) Group Headcount (FTE)
Improved operating performance and cost structure through 2008-2015
competitiveness improvement programsFavourable impact on KPIs with significantly improved efficiency and competitiveness
2010 2014
OperationalAvailability
Personnel Index (PI) Maintenance CostEfficiency Index
1st
quartile
2nd
quartile
4th
quartile
3rd
quartile
2010 2016
Domestic marketing opex
4.766
3.303
2010 2016
-31%-24%
71%
731
Retail Petrochemicals Wholesalesupply,
logistics andoverperformance
Non-refiningmargin derived
EBITDA
Refining EBITDAat $4.5/bbl
LTM Adj.EBITDA
Diversified business model limits exposure to cyclical refining margins
LTM Adj. EBITDA breakdown (€m)
17
Source: Company information.
Note: The above is not intended to be representative of future performance.
USD/EUR exchange rate of 1.1245 as of 8 September 2016.
No / low dependency on gross refining margin
Key industry macro drivers for Group
EBITDA €m
• Illustrative change in EBITDA for a given change in either benchmark
margin or exchange rate
• Based on normal operations throughput of 100-110mmbbl (LTM) and
LTM price environment
-$1.0/bbl
-10c. FX EUR/USD (50)
(100)
50
100 +$1.0/bbl
+10c. FX EUR/USD
56
16 13 12 931
2011 2012 2013 2014 2015 2016
73
25 22 32
91
31
2011 2012 2013 2014 2015 2016
18
(1) Calculated as Reported less the Inventory effects and other non-operating items.
(2) Net interest paid as per the company’s cash flow statements.
Source: Company information.
Well-invested asset base with low capex requirements
€ million, IFRS 2015 2016
Adj. EBITDA(1) 758 731
Capex 165 126
Adj. EBITDA – Capex 593 605
Adj. EBITDA / Interest(2) 3.9x 3.8x
(Adj. EBITDA – Capex) / Interest(2) 3.1x 3.2x
Low capex requirements going forward
629
135 100–150
2009-2012Average
2013-2016Average
2017-2018Guidance
Ca
pe
x (
€m
)Last 5Y refinery capex (€m)
Aspropyrgos
Elefsina
Thessaloniki
520453
46 61 36 30
2011 2012 2013 2014 2015 2016
Refinery
SystemCumulative refinery capex over last 5 years: €1.6bn
(Elefsina and Thessaloniki upgrade projects: €911m)
High levels of refinery growth capex historically
• Transformational refinery upgrades completed leading to:
‒ Improved operating performance
‒ Lower capex going forward
Cash Flow ProfilePost upgrade cashflows support balance sheet improvement and increased returns with reduced
risk profile
Free cash flow – pro forma at mid-cycle economics excl. working capital movements (€m)
Free cash flow
for deleverage
and distribution
TaxInterestCapexEBITDA (pro-
forma run rate)
Benchmark margins & EUR/USD driven
(100-150)
(150-200)
200-400
600-800
(60-120)
19
Contents
• Hellenic Petroleum Overview
• Investment Highlights
• Industry Update & Market developments
• 1Q17 Results
• Appendix
20
-1,00
-0,50
0,00
0,50
1,00
1,50
2,00
2,50
2012 2013 2014 2015 2016 2017
Med regional crude supplyExcess supply of sour crude grades (Iraq production growth) leads to favourable crude spreads for
Med refiners; Iran return to the market affecting 2016 balances
21
Crude exports / supply to Med* (kbpd)
B-U spread ($/bbl)
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
0
500
1.000
1.500
2.000
2.500
3.000
2012 2013 2014 2015 2016
Kirkuk CPC Siberian Light Urals (Novo) BTC Basrah (RHS)
(*) Total exports for Bashra; Med loadings for other grades
European demand growth for refined productsStrong demand growth in 2015-16 especially for light-ends; Consumption in Europe also positive
after several years of contraction
22
European demand growth per product (%)
-8%
-6%
-4%
-2%
0%
2%
4%
6%
2010 2011 2012 2013 2014 2015 2016
Gasoline Distillate Others
Source: KBC estimates as of 18/05/2016
Europe fuels (mbpd)
14.714.514.214.414.615.0
0
2
4
6
8
10
12
14
16
201620152014201320122011
-3% -2% -1% +2%Growth 1%
0
1
2
3
4
5
6
7
8
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
FCC
Hydrocracking
Recent Industry developmentsImprovement in European refining environment mainly on supply dynamics
Med complex margins - $/bbl
Med FCC margins:
2.6
$/bbl
3.3 6.5
23(*) Data updated as of 28/05/2017
5.0
• Crude supply in the region, being the key driver of resilient margins, sustained despite following
OPEC decision
• Weak crude prices and stronger USD positive for refiners, despite one-off inventory impact
6.2
Contents
• Hellenic Petroleum Overview
• Investment Highlights
• Industry Update & Market developments
• 1Q17 Results
• Appendix
24
1Q17 Key Highlights
25
Markets: Strong refining environment sustained
• Benchmark margins 3% up vs 1Q16; stronger USD supports core business profitability
• Higher crude oil leads to increased reported gains and affects working capital
• Increased domestic market demand, mainly driven by heating gasoil
Operations: Improved performance
• Increased over-performance vs benchmarks
• Production up by 11%
• Higher exports (+18%), accounting for 55% of total ex-refinery sales
• Exploration works in Greek assets in progress
Financial Results: Consistent delivery on results and cashflow
• 1Q17 Adj. EBITDA at €229m (+35%) Adj. Net Income at €126m (+80%):
• IFRS Net Income at €124m in 1Q17 (€32m LY)
• Positive operating cashflow with 1Q17 Adj. EBITDA – Capex at €211m
• Net Debt at €1.8bn, flat q-o-q, with D/E gearing at 0.8
FY € million, IFRS 1Q
2016 2016 2017 Δ%
Income Statement
15,618 Sales Volume (MT'000) - Refining 3,443 4,009 16%
4,668 Sales Volume (MT'000) - Marketing 995 1,201 21%
6,680 Net Sales 1,247 2,078 67%
Segmental EBITDA
536 - Refining, Supply & Trading 137 190 39%
100 - Petrochemicals 25 28 12%
101 - Marketing 12 13 15%
-6 - Other -4 -2 32%
731 Adjusted EBITDA * 169 229 35%
29 Share of operating profit of associates ** 9 31 -
551 Adjusted EBIT * (including Associates) 129 215 67%
-201 Finance costs - net -48 -46 4%
265 Adjusted Net Income * 70 126 80%
836 IFRS Reported EBITDA 129 226 75%
329 IFRS Reported Net Income 32 124 -
Balance Sheet / Cash Flow
3,903 Capital Employed 4,321 4,039 -7%
1,759 Net Debt 2,504 1,783 -29%
126 Capital Expenditure 26 18 -30%
1Q17 Group Key Financials
(*) Calculated as Reported less the Inventory effects and other non-operating items
(**) Includes 35% share of operating profit of DEPA Group adjusted for one-off items•26
IFRS Net Income (€m)
Adj. EBITDA (€m)
Refining sales volumes (m MT)
4.0
3.4
1Q16 1Q17
+16%
229
169
1Q17
+35%
1Q16
124
32
1Q16 1Q17
Product Cracks* ($/bbl)
Hydrocracking & FXC
Industry EnvironmentCrude spreads and record high FO crack resulted in improved benchmark margins for HELPE
refining system y-o-y
•27
Med benchmark margins** ($/bbl)
(*) Brent based.
(**) Revised benchmark margins set post-upgrades and secondary feedstock pricing adjustment
FCC
5.9
5.05.4
4.64.7
5.5
6.5
+8%
1Q1720164Q163Q162Q161Q162015
5.15.05.5
4.0
5.15.4
6.5
4Q163Q16
-7%
2015 1Q1720162Q161Q16
-20
-15
-10
-5
0
5
10
15
20
1Q16 2Q16 3Q16 4Q16 1Q17
$/bbl
Naphtha Gasoline ULSD HSFO
Domestic Market EnvironmentHGO led fuels demand higher on colder weather, with auto-fuels consumption marginally down
•28
(*) Does not include PPC and armed forces
Source: Ministry of Production Restructuring, Environment and Energy
Domestic Market demand* 1Q
(MT ‘000)
+11%
-5%
+1%
532 507
532 535
541
185197
599
1,838
1Q16
1,790
+3%
MOGAS
Diesel
HGO
LPG & Others
1Q17
Aviation & Bunkers demand* 1Q
(MT ‘000)
+4%
+35%
101 112
384
517
9995
+26%
Aviation
Bunkers Gasoil
Bunkers FO
1Q17
728
1Q16
580
+10%
+7%
-3 -2
137
190
25
28
11
503
11
13
3
1Q16 Benchmark RefiningMargins
FX Sales volumes /Asset utilisation /operations, S&T
Others 1Q17
Causal Track & Segmental Results Overview 1Q17Improved refining operations, crude supply optimization and industry economics drive results
•29
Adjusted EBITDA causal track 1Q17 vs 1Q16 (€m)
229
169
Refining,
S&T
MK
Chems
Refining,
S&T
MK
Chems
Other
(incl. E&P)
Environment Performance
Other
(incl. E&P)
ER 1Q16
Hydrocracker S/D
Sales: +0.56m MT
Contents
• Hellenic Petroleum post upgrade
• Investment Highlights
• Industry Update & Market developments
• 1Q17 Results
• Appendix
30
Assets overviewCore business around downstream assets with activities across the energy value chain
DESCRIPTION METRICS
• Exploration assets in Greece
• 50% (operator) in W.
Patraikos
• Exploration rights in 4
more areas
• Complex (recently upgraded) refining system:
– 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
• Basel technology PP production (integrated with
refining) and trading
• > 60% exports in the Med basin
• Capacity (PP): 220 kt
• Leading position in all market channels (Retail,
Commercial, Aviation, Bunkering) through EKO and
HF (BP branded network)
• c.1,740 petrol stations
• >30% market share
• Sales volumes: 3.5MT
• Strong position in Cyprus, Montenegro, Serbia,
Bulgaria, FYROM
• Advantage on supply chain/vertical integration
• c.300 petrol stations
• Sales volumes: 1.1MT
• ELPEDISON: Second largest IPP in Greece (JV with
Edison/EdF)
• Capacity: 810 MW
(CCGT)
• DEPA/DESFA GROUP: 35% in Greece’s incumbent
NatGas supply company (DESFA in sale process)• Volumes (2016): 4.0bcm
Refining, Supply
& Trading
Exploration &
Production
Domestic
Marketing
International
Marketing
Petrochemicals
Power & Gas
31
Aviation &
Bunkering
C&I (Construction,
wholesale)
Retail
Greek petroleum market overview and route to marketLeading domestic market position through vertical integration and competitive logistics assets
3rd party
Imports
60-65% 30-35%
0-10%
Greek Refining capacity: 25MT
Domestic market: 11.5MT
ELPE Group
subsidiaries: 3.5MT
(30%)
MOH Group
subsidiaries: 2MT
(20%)
Independent
marketing
companies: 4.5MT
(35%)
ELPE exports: 6-8MT
3rd party exports:
5MT
16MT
ELPE Group
subsidiaries: 1-2MT
8%
9%6%
20%
12%
24%
21%
Fuel Oil
Greek market product breakdown
Specialty markets
(PPC, public sector):
1.5MT (15%)
Gasoline
Diesel
GasoilJet
Bunkers
Other
32
Exploration & ProductionExploration activity focused on Greece
33
Patraikos Gulf (offshore)
• Hellenic Petroleum W. Patraikos 50% (operator)
• Edison International S.p.A 50%.
Major 3D double azimuth/2D seismic data acquisition
completed in February; processing ongoing
Sea of Thrace Concession (offshore)
• Hellenic Petroleum 25%,
• Calfrac Well Services 75%.
Prospective area surrounding the Prinos oilfield and
Kavala gas field
NW Peloponnese and Arta-Preveza Blocks (onshore)
Declared by the Ministry of Environment and Energy as
“Preferred Bidder”; Lease Agreement signed, expected to
be ratified by Ministry of Energy
Block 2 offshore W. Greece
Total 50% (operator), Hellenic Petroleum 25% and Edison International 25% awarded block, Lease agreement in final
form, expecting signing of agreement
Block 1 and Block 10 offshore W. Greece
Hellenic Petroleum has submitted bids for Block 1 and Block 10. Awarded rights for block 10
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, considering
credit exposure; 2nd largest independent supplier
• Energy market in Greece under restructuring; delays
in capacity certificates regulatory framework;
developments expected on current transitional regime
• Renewables portfolio target > 100MW (wind, PV,
biomass) subject to fiscal environment and market
developments
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Gas: 35% participation in DEPA, Greece’s incumbent gas company
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 (EPAs) and distribution (EDAs)
companies, following unbundling
– International pipelines: Participation in Greece-Bulgaria
Interconnector
DESFA (RAB)
– Greece’s gas grid and LNG import terminal owner and
operator
– Owners reviewing strategic alternatives
DEPA snapshot financials (€m)2009 2010 2011 2012* 2013 2014 2015* 2016
EBITDA 166 211 288 287 196 126 125 255
Net Income 61 91 191 197 147 83 66 128
* 2012 Adjusted for settlement with PPC; 2015 adjusted for settlement with BOTAS
Natural gas transmission network
DEPA Volumes 2009-2016 (bcm)
Consolidated as Associate
2015
3.0
2014
3.0
2013
3.8
2012
4.2
2011
4.3
2010
3.33.6
2009
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2016
4.0
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
ADO Auto Diesel Oil
CCGT Combined Cycle Gas Turbine
COMO Company Owned Manager Operated
DCM Debt Capital Markets
FCC Fluid Catalytic Cracking
HDC Hydrocracking
HGO Heating Gasoil
HS Hydroskimming
HSFO High Sulfur Fuel Oil
IPP Independent Power Producer
MOGAS Motor Gasoline
LNG Liquefied Natural Gas
NatGas Natural Gas
Nelson Complexity Index (NCI) Index assessing the refinery conversion capacity by relating each processing unit capacity against the crude distillation
capacity and applying a weighting factor.
POIH Paneuropean Oil and Industrial Holdings
PP Polypropylene
Solomon Complexity 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
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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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