39
Company update December 2014
Company update
December 2014
1 1
Contents
• Introduction – Group Overview
• Strategy update
• Industry & market developments
• Strategic business units (SBUs)
• Appendix
Complex refining asset base and leading domestic market share; Group
positioned to benefit from Greek market recovery and refining industry upturn
2
• Complex refineries (Nelson index 9.6)
• Balanced sales channel mix with exports at
50% of total sales
• Leading domestic market position with c.60-
65% of wholesale and c.30% of retail
• Regional footprint with international
subsidiaries
• Completed extensive restructuring plan with
>€300m of recurring cash benefits realised to
date and c.€70-100m of further upside
• 30% of capital employed in non-refining
margin driven returns (Marketing, Petchems,
Power and NatGas)
Nelson/Solomon complexity benchmark margins
Group operational footprint
ROMANIA
TURKEY
BULGARIA
SERBIA
CYPRUS
FYROM
GREECE
ALBANIA
BOSNIA
MONTENEGRO
Refining
Marketing
Power & Gas
9.711.3
6.98.8
13.9
5.0
Aspropygros Elefsina Thessaloniki
NCI Solomon
5* -3* 4*
*$/bbl, average 2010-13
Shareholding & Governance Controlling shareholders’ agreement supported long-term strategy and successful transition
from state to private sector, divestment of remaining 35% held by the Greek State announced
as part of the privatisation
3
Shareholding structure
35%
9%
7% 6%
8%
36%
Greek State
Retail
7% Int’l institutionals
GR institutionals
POIH 43%
Corporate Governance
Board of Directors:
• Consists of 13 members (3 executive and
10 non executive) appointed as per
Articles of Association
• Board Committees (Finance / Audit / HR)
Executive Committee:
• Key management executives with
responsibility for strategy and operations
Management structure:
• SBU structure ensures focus on key
business issues
• Regional portfolio controlled centrally
Assets overview Core business around downstream assets with activities across the energy value chain
DESCRIPTION METRICS
• Exploration assets in Greece, Egypt, Montenegro
• Recently upgraded refining asset base:
– 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
• Leading position in all market channels (Retail,
Commercial, Aviation, Bunkering) through EKO and
HF (BP branded network)
• c.1,800 petrol stations
• 30% market share
• Sales volumes: 3MT
• Strong positions in Cyprus, Montenegro, Serbia,
Bulgaria
• Advantage on supply chain/vertical integration
• c.280 petrol stations
• Sales volumes: 1MT
• Basel technology PP production (integrated with
refining) and trading
• > 50% exports in Iberia, Italy & Turkey
• Capacity (PP): 220 kt
• ELPEDISON: Second largest IPP in Greece (JV
with Edison/EdF)
• Capacity: 810 MW
(CCGT)
• DEPA GROUP: 35% in Greece’s incumbent
NatGas supply company (under privatisation)
• Volumes (2013):
3.8bcm
4
Refining, Supply & Trading
Exploration & Production
Domestic Marketing
International Marketing
Petrochemicals
Power & Gas
Our Group in numbers – key financials
5
€ million, IFRS 2009 2010 2011 2012 2013 9M14
Income Statement
Sales Volume (MT) - Refining 15,885 14,502 12,528 12,796 12,696 9,557
Net Sales 7,424 8,477 9,308 10,469 9,674 7,056
Segmental EBITDA
- Refining, Supply & Trading 269 338 259 345 57 120
- Marketing 92 114 66 53 68 75
- Petrochemicals 20 50 44 47 57 56
- Other (incl. E&P) -19 -28 -6 0 -5 -5
Adjusted EBITDA * 362 474 363 444 178 246
Adjusted associates’ share of profit 18 30 67 69 57 23
Adjusted Net Income * 150 205 137 232 -117 -48
Balance Sheet / Cash Flow
Capital Employed 3,927 4,191 4,217 4,350 3,905 3,849
Net Debt 1,419 1,659 1,687 1,855 1,689 1,780
Capital Expenditure (incl. refinery upgrades) 614 709 675 521 112 85
Free Cash flow -561 17 165 25 404 68
(*) Calculated as Reported less the Inventory effects and other non-operating items
6 6
Contents
• Introduction – Group Overview
• Strategy update
• Industry & market developments
• Strategic business units (SBUs)
• Appendix
7
2013-2017 Strategy Update Refocuses on operational excellence; maximise cash flows to deleverage
1
2
5
Consolidate market position
leveraging on new asset base
Develop our people and continue to
build culture of excellence
3 Enhance competitiveness
improvement momentum
4 Leverage business portfolio
Realise full benefit of the new
investment 1
2 Deleverage Group
3 Diversify funding mix
4 Reduce funding costs
Improve profitability
BUSINESS TARGETS FINANCIAL TARGETS
* Assuming mid cycle margins
Elefsina performance, operational improvements and restructuring drive profitability
rebase; further upside from Greek economy and margin recovery
178
400-700
50-60
70-10020-30
40-60
2013 Elefsina
optimisation
Performance
Improvement
Greek market 2014 runrate Performance Margins and
FX*
Medium Term
Adjusted EBITDA projected evolution (€ mil)
400 (700)
(300)
EBITDA Capex Pre Tax Free Cash
Flow
Investment phase
400-700
(100)-(150) 250-550
EBITDA Capex Pre Tax Free Cash
Flow
Post-upgrade
Cash Flow profile pre and post-investment plan (€ mil)
8 (*) $1/bbl sensitivity in margins results to €80m, assuming planned utilisation of refineries and €/$ at 1.25
2013 margin
($2.4/ bbl) 300-350
Medium term
performance
driven by refining
margins
Does not include
Contribution from
Associates
-4
-2
0
2
4
6
8
9
Elefsina Refinery Upgrade Full residue conversion, with c.75% middle distillates yield, positioning Elefsina as a top
net cash margin refinery in the Med basin
47%
24%
11%11%
17%25%
64%
Pre upgrade Current
Other
Jet
Diesel/Gas oil
Fuel oil
Product slate
European Med refineries Net Cash margins*
*Wood Mackenzie 2018 Net cash margin projection, Med basin refineries
Elefsina
Refinery utilisation (%)
80
95
8376
2H14 TD 1H13 Q412 1H14 2H13
> 100%
10
-24%
9m14 9m13 9m12 9m11 9m10
Fixed Opex (€m) - Domestic Marketing
COMPETITIVENESS IMPROVEMENTS €65m incremental benefits in 2014; positive impact evident in a number of KPIs during
last few years improving Group’s competitive position
Group Headcount
-35%
9m14 2013 2012 2011 2010 2009 2008
-39%
9m14 9m13 9m12 9m11 9m10
Unit Fixed Opex* (€/MTpa) - Refining Aspropyrgos – Energy Cost** ($/EDC bbl)
+32%
9m14 9m13
ELPE system
Gross operations margin*** ($/bbl)
2014 2013 2012
-23%
(*) over operable capacity
(**) Adjusted for Platt’s prices change
(***) Adjusted for benchmark margins change
COMO network sales share (%)
- Domestic Marketing
YTD 14
4 x
2013 2012 2011 2010
CAPITAL STRUCTURE UPDATE Stronger balance sheet post recent DCM issues and Term loan renegotiation; cost of funding
reduced but still impacted in 9M14 by Greek environment; strategy on cash utilisation re-
evaluated taking into account market conditions post Greek banks stress tests
Average and Marginal cost of funding evolution (%)
2
3
4
5
6
7
8
9
2012 2011
Marginal
Average
2014 2013
3Q14 Gross debt by source
12%
37%
EIB
DCM
Banks (uncommitted)
31%
Banks (committed)
20%
Total:
€3.1bn
3Q14 Maturity Profile
0
100
200
300
400
500
600
2020+ 2019 2017 2018 2015 2016 2014
2014-16: c. €450m
12 12
Contents
• Introduction – Group Overview
• Strategy update
• Industry & market developments
• Strategic business units (SBUs)
• Appendix
Recent Industry developments Recent improvement in European refining environment driven by regional crude supply
and demand recovery
13
• 2013-1H14 the worse refining macro backdrop in the Med region for at least a decade
• European refining margins benefited from improved Atlantic basin crude supply conditions (production
growth in US, as well as Libya and Iraq)
• Higher gasoline demand in US and emerging markets; diesel outlook positive (IMO)
• Challenges from regional overcapacity and additional product flows from Middle East/FSU remain
• Weak crude prices and stronger USD positive for refiners, despite one-off inventory impact
Med complex margins - $/bbl (2012- 2014)
* updated as of 13 November 2014
0
1
2
3
4
5
6
7
1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 QTD*
FCC
Hydrocracking
Med FCC margins:
$1.5/bbl
$/bbl
$4.7/bbl
14 14
Regional market – Diesel shortage in the Med ELPE middle distillates yield match expected increasing shortage in the region
-178
-103
-65 -28
-40
-40
-10 -11
-20
-6
-5
-18
-195
-34
-55
-16
-13
-87
+4
+8
+9
PORTUGAL
GIBRALTAR
MOROCCO
SPAIN
MED FRANCE
ALGERIA
TUNISIA MALTA
ITALY
CROATIA
SLOVENIA
SERBIA
BOSNIA
FYROM
ALBANIA
GREECE
MONTENEGRO
TURKEY
LIBYA
EGYPT ISRAEL
LEBANON
SYRIA
CYPRUS
Diesel/Gasoil surplus (2020)
Diesel/Gasoil deficit (2020)
Key DIESEL/GASOIL balances in the Med region , kb/d (2020)
-59
Source: Wood Mackenzie
(*) Does not include PPC and armed forces
Source: Ministry of Energy, Environment and Climate Change
DOMESTIC MARKET ENVIRONMENT Stabilisation in domestic market demand following significant contraction during the last few
years
15
Domestic oil products demand 2009-2014 (MT ‘000)
7,208
6,5345,924
5,365
5,342
6,599
-70% Heating Gasoil
& others
Transport Fuels
2013
1,257
2012
7,727
2,362
2011
9,268
3,344
2010
10,125
3,591
2009
11,413
4,205
1,941
4,025
9M13 9M14
4,012
703
4,715 4,735
715
4,020
9M12
5,966
2009 vs 2013 -42%
Auto fuels -26%
16 16
Contents
• Introduction - Group overview
• Strategy update
• Industry & market developments
• Strategic Business Units (SBUs)
• Appendix
Aviation &
Bunkering
C&I (Construction,
wholesale)
Retail
17
Greek petroleum market overview and route to market Leading domestic market position through vertical integration and competitive logistics
assets; well positioned to capture Greek recovery
3rd party
Imports
60-65% 25-30%
0-10%
Greek Refining capacity: 25MT
Domestic market: 11.5MT
ELPE Group
subsidiaries: 3MT
(30%)
MOH Group
subsidiaries: 2MT
(20%)
Independent
marketing
companies: 5MT
(40%)
ELPE exports: 6-8MT
3rd party exports:
5MT
16MT
ELPE Group
subsidiaries: 1-2MT
8%
22%
8%
Greek market product breakdown
Specialty markets
(PPC, public sector):
1.5MT (10%)
Gasoline
Diesel
Gasoil Jet
Bunkers
Other
23%
23%
23%
18
Greek Refining, Supply & Trading economics Trading activity in domestic and international markets complements refining returns;
export sales accounting for 50% of total
Markets
(sales premia varying
across channels)
Refining
(Med benchmark returns
& operations performance)
Refined Products
(14.0m MT)
Imported Products
(0.5-1.5m MT)
Aviation & Bunkering
(Med competitive pricing)
Exports, Intra-Group
(Platts Med FOB based + premia)
Domestic market
5 MT
3 MT
Exports, 3rd parties
(Platts Med FOB based)
2 MT
5 MT
Aspropyrgos
NCI 9.7
148kbpd
FCC
Thessaloniki
NCI 6.9
95kbpd
Hydroskimming
Elefsina
NCI 11.3
100kbpd
HDC
16 MT
0.5-1.5 MT
$ / €
Total ELPE capacity
11%
89%
High sulphur
Low sulphur
12%
55%
25%
8%
Fuel oil Middle Distillates
Gasoline Other
1,175 1,078 1,041 982 942
1,170 1,108
981 949
874
2009 2010 2011 2012 2013
EKO HF
19
Marketing Leading position in the Greek market with EKO and BP brands; subsidiaries in
neighboring markets increase downstream integration
Auto-fuels domestic market share
evolution (%)
Domestic Retail network evolution (# PS)
1,931
International Marketing: Regional footprint
30
15
2012 (post BP
acquisition)
2008 (EKO only)
International Marketing: Sales volumes evolution
(MT)
194 220 222 336 367
126 152 150117 115
256243 237
215 211
379 404
2012
1,072
2011
1,041
438
1,072
2013
433
2010
1,051
436
2009
1,014
SER JPK CY BU
1,816
2,345 2,186
2,022
20 20
Petrochemicals Operations centred on vertical integration for higher value product; trading geared to
exports markets
Polypropylene value chain
Propylene (refinery grade)
Propylene splitter
90%
Thessaloniki PP plant
(220 kt)
PP
Imports
10%
Propylene (polymer grade)
10%
90%
Domestic and international
market
BOPP film plant (26kt)
Position:
• Competitive advantage in polypropylene - vertical
integration exceeding 85% of total production
• Exports account for 50-60% of total sales; strong
export markets in Turkey, Italy and Iberia
• Domestic market share in petchems exceeds 50% in
all products, produced or traded
Targets:
• Increase propylene production capturing propane
conversion value
• Exploit niche markets:
– Increase PP resin grade portfolio and BOPP film
types with tangible cash benefits
– Add new plastics
• Leverage regional positioning and in-market
presence to increase trading
21 21
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, within
predefined credit metrics
• Energy market in Greece under restructuring;
current model targets system stability during a
transitional phase
• Renewables portfolio target > 100MW (wind, PV,
biomass) subject to fiscal environment and market
developments
22 22
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
DESFA (RAB)
– Greece’s gas grid and LNG import terminal owner and
operator
– International pipelines: Participation in Greece-Bulgaria
Interconnector
• SPA for sale of 66% of DESFA to SOCAR for €400m signed
on 21 Dec 2013; regulatory approvals in process for
completion of transaction
DEPA snapshot financials (€m)
2008 2009 2010 2011 2012* 2013
EBITDA 240 166 211 288 287 209
Net Income 120 61 91 191 197 170
* Adjusted for settlement with PPC
Natural gas transmission network
DEPA Volumes 2007-13 (bcm)
Consolidated as Associate
3.8 4.0 3.6
3.3
4.3 4.2 3.8
2007 2008 2009 2010 2011 2012 2013
23
Contents
• Introduction - Group overview
• Strategy update
• Industry & market developments
• Strategic business units (SBUs)
• Appendix
24 24
Key Milestones Transforming stand-alone government controlled Greek companies to a leading private
sector regional energy player
PETROLA ( Elefsina
Refinery)
DEP &
DEPEKY (Greek E&P)
ELDA ( Aspropyrgos
Refinery)
ESSO -
PAPPAS ( Thessaloniki
Refinery)
PETROLA
(Elefsina
Refinery)
DEP &
DEPEKY (Greek E&P)
ELDA ( Aspropyrgos
Refinery)
ESSO -
PAPPAS ( Thessaloniki
Refinery)
1998 1960 –
1998 2003 2007 2008 2009 2014
Elpedison: 50/50 JV
with Italy’s Edison,
in Power
Libyan upstream
concessions sold to
GDF Suez for $170m
2010
Thessaloniki Refinery
upgrade completed
Sale of 70% stake in
W. Obayed upstream
concession in Egypt
Acquisition of BP’s
Ground Fuels business
in Greece
Merger with
Petrola
Hellas
Elpedison’s 2nd CCGT
Plant (420MW) in
commercial operation
Shareholding events
Listing of
new Group in
ASE/LSE
Greek Government
announces its
intention to divest
its shareholding in
ELPE
2011
Agreement to
DESFA sale for
€212m
Elefsina
upgraded refinery
start up
POIH becomes
strategic investor
with 25% stake
Float 21%
Greek State
36%
POIH 43%
2012 2013
Issue of €500m
Eurobond
Acceleration of
transformation
programs targeting
c.80m of benefits
Issue of €325m and
$400m Eurobond
25
Group Key financials: 2004 - 2013 Strong track record of consistent delivery and balance sheet resilience
(*) Calculated as Reported less the Inventory effects and other one-off non-operating items and special income taxes
€ million, IFRS (Published) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Income Statement Figures
Sales Volume (MT)- Refining 15,807 16,525 16,952 17,130 16,997 15,885 14,557 12,528 12,796 12,696
Sales Volume (MT)- Marketing 4,793 4,727 4,790 5,236 4,910 4,787 5,735 5,126 4,434 4,043
Net Sales 4,907 6,653 8,122 8,538 10,131 6,757 8,477 9,308 10,469 9,674
EBITDA 372 671 502 617 249 390 501 335 298 29
Adjusted EBITDA* 400 466 526 458 513 362 474 363 444 178
Net Income 128 334 260 351 24 175 180 114 86 -269
Adjusted Net Income* 149 191 277 232 216 150 205 137 232 -117
Balance Sheet / cash Flow Items
Capital Employed 2,335 2,956 3,442 3,557 3,153 3,927 4,191 4,217 4,350 3,905
Net Debt 386 699 1,044 977 679 1,419 1,629 1,687 1,855 1,689
Capital Expenditure 295 185 145 195 338 614 709 675 521 112
Dividend (€/share) 0.26 0.43 0.43 0.50 0.45 0.45 0.45 0.45 0.15 n/a
Key drivers
Brent crude ($/bbl) 38.0 55.2 68.1 72.9 98.3 62.6 80.3 111.0 111.7 108.7
FCC cracking Med margins ($/bbl) 7.2 7.3 7.3 7.1 6.8 3.7 4.4 2.9 4.7 2.4
€/$ 1.24 1.24 1.26 1.37 1.47 1.39 1.33 1.39 1.29 1.33
FY € million, IFRS 3Q 9M
2013 2013 2014 Δ% 2013 2014 Δ%
Income Statement
12,696 Sales Volume (MT) - Refining 3,397 3,581 5% 9,782 9,557 -2%
4,043 Sales Volume (MT) - Marketing 1,183 1,278 8% 3,077 3,057 -1%
9,674 Net Sales 2,650 2,634 -1% 7,447 7,096 -5%
Segmental EBITDA
57 - Refining, Supply & Trading 22 86 - 32 120 -
68 - Marketing 35 41 16% 57 75 31%
57 - Petrochemicals 17 19 14% 46 56 22%
-5 - Other -2 -1 57% -2 -5 -
178 Adjusted EBITDA * 74 146 97% 133 246 84%
11 Adjusted EBIT * (including Associates) 46 91 - 24 119 -
-209 Finance costs - net -55 -59 -9% -157 -166 -6%
-117 Adjusted Net Income * 1 24 - -82 -48 42%
29 IFRS Reported EBITDA 75 45 -40% 40 123 -
-269 IFRS Reported Net Income 2 -51 - -171 -139 19%
Balance Sheet / Cash Flow
3,905 Capital Employed 4,604 3,849 -16%
1,689 Net Debt 2,293 1,780 -22%
112 Capital Expenditure 19 24 25% 56 85 51%
3Q14 GROUP KEY FINANCIALS
(*) Calculated as Reported less the Inventory effects and other non-operating items 26
45
75 -40%
3Q14 3Q13
Reported EBITDA (€m)
146
74
+97%
3Q14 3Q13
Adj. EBITDA (€m)
1,780
2,293-22%
9m14 9m13
Net Debt (€m)
3Q14 HIGHLIGHTS Strong Group results driven by positive refining margins, domestic market uplift and improved
operations across all business units; crude oil price drop affected reported results
Industry and Market: Moving to more positive grounds
• Stronger Med benchmark refining margins q-o-q and y-o-y, further supported by USD trend
• Brent declined to an average $102/bbl in 3Q14; crude supply conditions improved light/sweet
differentials
• First quarter reporting domestic demand growth (+3%) since 2009 crisis; improved auto fuels market
shares
Financials: Strong Clean results and operating cashflow
• 3Q14 Adjusted EBITDA at €146m (€74m LY); improved contribution across all businesses and
Elefsina record performance; Adj. Net Income at €24m (€1m LY)
• Lower 9M fixed cost by 12% (y-o-y), performance improvement projects added €24m in 3Q14
• Reported results affected by the $25/bbl (June – Oct) drop in crude oil prices
• Net Debt at €1.8bn, with gearing at 46%
Financing & Strategy update: Benefits of refinancing and progress on key projects
• Recent DCM issuance allowed early prepayment and renegotiation of more expensive bank debt;
strategy on cash and bank facilities under evaluation, post successful Greek banks stress-test results
• DESFA transaction approved by DG Energy and RAE; DG Comp still in progress
• EGM scheduled ahead of year-end in line with L. 4172/13 reserves taxation and distribution
27
70
80
90
100
110
120
130
$/bbl
1.15
1.20
1.25
1.30
1.35
1.40
1.45
$/€
01/07/2014
110.5
INDUSTRY ENVIRONMENT Improved regional crude markets and stronger USD q-o-q
• Increased supply especially for
light/sweet grades led market prices
to a 2-year low
ICE Brent ($/bbl)
EURUSD Exchange Rate ($/€)
• Stronger USD q-o-q, with benefits for
refining
• 2 years low for € at 1.26 resulting in
FX MtM losses
28
30/09/2014
94.8
2013 2014
9m 1.32 1.36
3Q 1.33 1.33
01/07/2014
1.37
30/09/2014
1.26
2013 2014
9m 108.4 106.6
3Q 110.3 101.9
0.00
5.00
10.00
15.00
20.00
25.00
-1.00
0.00
1.00
2.00
3.00
4.00
INDUSTRY ENVIRONMENT Sweet-sour differentials affected by crude availability in the region
Source: 1312_Section 1 Paws_Cracks_Margins_Market Data Data
received from GDO Brent – Urals spread ($/bbl)
• Regional crude availability and
refinery maintenance kept Urals
discount to Brent at $1/bbl area
• Lower Urals participation at 36% in
ELPE crude slate during 3Q14
29
Brent – WTI spread ($/bbl)
2013 2014
9m 10.32 7.41
3Q 3.84 6.15
2013 2014
9m 0.38 1.08
3Q (0.33) 0.99
• Brent – WTI spread tighter q-o-q; still
US refineries ran at record rates
0.0
5.0
10.0
15.0
20.0
5.0
10.0
15.0
20.0
Hydrocracking
INDUSTRY ENVIRONMENT Improved product cracks and crude supply conditions led benchmark margins to 20-month
highs
30
Med benchmark margins ($/bbl)
MOGAS
HSFO
ULSD 4.6
2.3
1.7
2.4
1.01.0
3.5
4.1
4.7
3Q14 2Q14 1Q14 2013 4Q13 3Q13 2Q13 1Q13 2012
5.1
3.2
4.13.7
4.7
2.92.4
4.7
5.4
3Q13
+74%
3Q14 2Q14 1Q14 2013 4Q13 2Q13 1Q13 2012
(*) Brent based
Naphtha
Product Cracks* ($/bbl)
FCC
-40.0
-30.0
-20.0
-10.0
2013 2014
-15.0
-12.0
-9.0
-6.0
-3.0
0.0
2013 2014
DOMESTIC MARKET ENVIRONMENT First positive sign on local fuel demand since 2009 in 3Q14; auto fuels demand supported by
strong tourism season
31
10%
-7%
-12%
601 614
186 203
-1%
2Q14
1,502
634
51
2Q13
1,512
675
50
Domestic Market demand (MT ‘000*)
457 494
426361
150168
-3%
1Q14
1,588
565
1Q13
1,645
612
HGO
ADO
MOGAS
LPG & Others
9%
8%
-5%
(*) Does not include PPC and armed forces
Source: Ministry of Energy, Environment and Climate Change
620 672
220 242
1,625
+3%
3Q14
711
1,580
3Q13
740
10%
8%
-4%
3Q 2014 FINANCIAL RESULTS GROUP PROFIT & LOSS ACCOUNT
(*) Includes derecognition of Elefsina project hedges (non-recurring)
(**) Includes 35% share of operating profit of DEPA Group 32
FY IFRS FINANCIAL STATEMENTS 3Q 9M
2013 € MILLION 2013 2014 Δ % 2013 2014 Δ %
9,674 Sales 2,650 2,633 (1%) 7,447 7,096 (5%)
(9,369) Cost of sales (2,506) (2,533) (1%) (7,243) (6,804) 6%
305 Gross profit 144 100 (30%) 204 291 42%
(448) Selling, distribution and administrative expenses (109) (111) (1%) (322) (319) 1%
(3) Exploration expenses (0) (1) - (2) (2) (9%)
(50) Other operating (expenses) / income - net* 2 3 68% (1) 3 -
(195) Operating profit (loss) 36 (8) - (121) (27) 78%
(209) Finance costs - net (55) (59) (9%) (157) (166) (6%)
9 Currency exchange gains /(losses) 1 (9) - 10 (10) -
57 Share of operating profit of associates** 12 (1) - 51 23 (55%)
(338) Profit before income tax (5) (78) - (216) (180) 17%
66 Income tax expense / (credit) 9 29 - 42 39 (7%)
(272) Profit for the period 4 (49) - (174) (141) 19%
3 Minority Interest (2) (1) 47% 3 2 (32%)
(269) Net Income (Loss) 2 (50) - (171) (139) 19%
(0.88) Basic and diluted EPS (in €) 0.01 (0.17) - (0.56) (0.45) 19%
29 Reported EBITDA 75 45 (40%) 40 123 -
33
3Q 2014 FINANCIAL RESULTS GROUP BALANCE SHEET
(*) 35% share of DEPA Group book value (consolidated as an associate)
IFRS FINANCIAL STATEMENTS FY 9M
€ MILLION 2013 2014
Non-current assets
Tangible and Intangible assets 3,607 3,538
Investments in affiliated companies* 692 676
Other non-current assets 172 205
4,470 4,419Current assets
Inventories 1,005 1,056
Trade and other receivables 743 712
Cash and cash equivalents 960 1,279
2,707 3,047
Total assets 7,177 7,466
Shareholders equity 2,099 1,956
Minority interest 116 112
Total equity 2,214 2,068
Non- current liabilities
Borrowings 1,312 1,826
Other non-current liabilities 164 154
1,475 1,980Current liabilities
Trade and other payables 2,125 2,170
Borrowings 1,338 1,235
Other current liabilities 24 14
3,488 3,419
Total liabilities 4,963 5,399
Total equity and liabilities 7,177 7,466
3Q 2014 FINANCIAL RESULTS GROUP CASH FLOW
34
FY IFRS FINANCIAL STATEMENTS 9M 9M
2013 € MILLION 2013 2014
Cash flows from operating activities
502 Cash generated from operations (218) 130
(9) Income and other taxes paid (6) (21)
493 Net cash (used in) / generated from operating activities (224) 109
Cash flows from investing activities
(105) Purchase of property, plant and equipment & intangible assets (56) (85)
(7) Acquisition of subsidiary - -
4 Sale of property, plant and equipment & intangible assets 4 1
8 Interest received 5 5
(3) Investments in associates (3) -
13 Dividends received 13 38
(90) Net cash used in investing activities (37) (41)
Cash flows from financing activities
(184) Interest paid (127) (142)
(46) Dividends paid (46) (2)
1,276 Proceeds from borrowings 1,276 1,096
(1,384) Repayment of borrowings (1,245) (724)
(338) Net cash generated from / (used in ) financing activities (142) 228
65 Net increase/(decrease) in cash & cash equivalents (403) 296
901 Cash & cash equivalents at the beginning of the period 901 960
(6) Exchange gains/(losses) on cash & cash equivalents (2) 23
65 Net increase/(decrease) in cash & cash equivalents (403) 296
960 Cash & cash equivalents at end of the period 496 1,279
(*) Calculated as Reported less the Inventory effects and other non-operating items
3Q 2014 FINANCIAL RESULTS SEGMENTAL ANALYSIS – I
35
FY 3Q 9M
2013 € million, IFRS 2013 2014 Δ% 2013 2014 Δ%
Reported EBITDA
-80 Refining, Supply & Trading 25 -14 - -63 -1 98%
63 Marketing 35 41 15% 61 73 18%
53 Petrochemicals 17 19 14% 44 56 27%
36 Core Business 77 47 -40% 43 128 -
-8 Other (incl. E&P) -2 -1 40% -3 -5 -62%
29 Total 75 45 -40% 40 123 -
102 Associates (Power & Gas) share attributable to Group 24 2 -91% 75 55 -27%
Adjusted EBITDA (*)
57 Refining, Supply & Trading 23 86 - 33 120 -
68 Marketing 35 41 16% 57 75 31%
57 Petrochemicals 17 19 14% 46 56 22%
183 Core Business 76 147 93% 136 251 84%
-5 Other (incl. E&P) -2 -1 40% -3 -5 -62%
178 Total 74 146 98% 133 246 85%
102 Associates (Power & Gas) share attributable to Group 24 2 -91% 75 55 -27%
Adjusted EBIT (*)
-97 Refining, Supply & Trading 1 50 - -74 21 -
13 Marketing 23 27 21% 16 35 -
45 Petrochemicals 13 17 33% 34 47 37%
-39 Core Business 36 95 - -23 103 -
-7 Other (incl. E&P) -2 -2 8% -4 -6 -79%
-46 Total 34 93 - -27 96 -
57 Associates (Power & Gas) share attributable to Group 12 0 - 51 23 -55%
3Q 2014 FINANCIAL RESULTS SEGMENTAL ANALYSIS – II
36
FY 3Q 9M
2013 € million, IFRS 2013 2014 Δ% 2013 2014 Δ%
Volumes (M/T'000)
12,696 Refining, Supply & Trading 3,397 3,581 5% 9,782 9,557 -2%
4,043 Marketing 1,183 1,278 8% 3,077 3,057 -1%
295 Petrochemicals 79 58 -27% 222 172 -23%
17,035 Total - Core Business 4,659 4,917 6% 13,081 12,786 -2%
Sales
9,078 Refining, Supply & Trading 2,488 2,451 -1% 7,017 6,602 -6%
3,345 Marketing 991 1,021 3% 2,564 2,479 -3%
327 Petrochemicals 84 81 -3% 243 238 -2%
12,750 Core Business 3,563 3,554 0% 9,824 9,319 -5%
-3,076 Intersegment & other -914 -920 16% -2,378 -2,224 6%
9,674 Total 2,650 2,634 -1% 7,447 7,096 -5%
Capital Employed
2,248 Refining, Supply & Trading 2,753 2,224 -19%
775 Marketing 959 711 -26%
129 Petrochemicals 141 153 9%
3,152 Core Business 3,852 3,088 -20%
692 Associates (Power & Gas) 685 676 -1%
62 Other (incl. E&P) 67 86 29%
3,905 Total 4,604 3,849 -16%
37
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
CCGT Combined Cycle Gas Turbine
FCC Fluid Catalytic Cracking
HDC Hydrocracking
HS Hydroskimming
HSFO High Sulfur Fuel Oil
IPP Independent Power Producer
Leverage ratio Net Debt / Adjusted EBITDA (including associates share of net income)
LNG Liquefied Natural Gas
NatGas Natural Gas
Nelson Complexity Index (NCI) An index assessing the refinery conversion capacity by relating each processing unit capacity against the
crude distillation capacity and applying weighting factor.
Pro forma leverage ratio Net Debt (excluding debt equal to investment in associates ) / Adjusted EBITDA
Pro forma leverage on mid cycle
historical EBITDA (2010-2012 avg)
Net Debt (excluding investment in associates ) / Adjusted EBITDA(2010-2012 avg)
POIH Paneuropean Oil and Industrial Holdings (POIH)
PP Polypropylene
Solomon Comlexity 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 (ULSD)
38
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).
