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Company update
June 2016
1
Contents
• Hellenic Petroleum Overview
• Industry Update & Market Developments
• 1Q16 Results
• Appendix
Assets overview Core 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 2
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.1,700 petrol stations
• 30% market share
• Sales volumes: 3.5MT
• Strong position in Cyprus, Montenegro, Serbia,
Bulgaria, FYROM
• Advantage on supply chain/vertical integration
• c.290 petrol stations
• Sales volumes: 1.2MT
• 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 (2015): 3.0bcm
Refining, Supply
& Trading
Exploration &
Production
Domestic
Marketing
International
Marketing
Petrochemicals
Power & Gas
2
Key financials
€ million, IFRS 2010 2011 2012 2013 2014 2015 1Q16
Income Statement
Sales Volume (MT’000) - Refining 14,502 12,528 12,796 12,696 13,538 14,258 3,443
Net Sales 8,477 9,308 10,469 9,674 9,478 7,303 995
Segmental EBITDA
- Refining, Supply & Trading 338 259 345 57 253 561 137
- Petrochemicals 50 44 47 57 81 93 25
- Marketing 114 66 53 68 90 107 12
- Other (incl. E&P) -28 -6 0 -5 -7 -2 -4
Adjusted EBITDA * 474 363 444 178 417 758 169
Adjusted associates’ share of profit 30 67 69 57 28 22 9
Adjusted Net Income * 213 140 229 -120 2 268 70
Balance Sheet / Cash Flow
Capital Employed 4,191 4,217 4,350 3,905 2,870 2,913 4,321
Net Debt 1,659 1,687 1,855 1,689 1,140 1,122 2,504
Capital Expenditure (incl. refinery upgrades) 709 675 521 112 136 165 26
(*) Calculated as Reported less the Inventory effects and other non-operating items 3
Current Position post 2007-12 Strategic Investment & Transformation Plan Delivery of strategic targets despite prolonged crisis; new refinery amongst most competitive in
the Med
4
1
2
5
Upgrade Refining Assets
Manage Portfolio for value
Fit-for-purpose organisation
3
Enhance vertical integration
4 Improve competitiveness
• Completed refinery upgrades successfully
• Among the most complex refining systems in the Med
• Doubled domestic market share - BP network
• Regional integration
• Re-focus E&P
• Power generation portfolio JV
• Refining improvements (DIAS)
• Marketing competitiveness
• Procurement (BEST 80)
• Reduced headcount by 21%
• Group culture
• Shared services
Current Position Leading domestic market position; major middle distillates and naphtha/gasoline exporter in the
East Med market;
Group operational footprint and Sales
5
Domestic
Aviation & Bunkering
Exports
MONTENEGRO
BULGARIA
FYROM
CYPRUS
Power & Gas
SERBIA
GREECE
Regional market – Diesel shortage in the Med ELPE yields match increasing shortage in the region
Key DIESEL/GASOIL balances in the Med region, kb/d (2020)
-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)
-59
Source: Wood Mackenzie
6
2013-18 Strategy Update Utilise strong refining and logistics asset base to consolidate position; risk management remains
key priority
1
2
5
Rebalance market position and
de-risk business model
Strengthen financial position
3 Continue 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
• Deleverage balance-sheet
• Business model de-risking
• Cost of funding
7
•85%
•60%
•60%
•50%
•65%
29% 21%
41% 54%
8%
14%
22% 11%
2011 2015Mogas
Middle distillates
Others
Fuel oil
2,914
5,031
1,282
Aspropyrgos
Thessaloniki
Elefsina
2015
14,359
6,414
2011
8,635
7,061
293
(*) Total feed over crude capacity; 2011-1H12 Elefsina Refinery was not operating due to its upgrade project
Business model – Operations & Markets Elefsina upgrade transformed business model; increased production and improved yields drive
higher exports
Refining product yields (%)
21% 50%
Nameplate
capacity
8
21%
Gross Production by refinery
(MT’000)
54% Utilisation
Rate* (%) 91%
0
5
10
15
2011 2015
IG intsales
Refining Sales by market (m MT)
50% 21%
Domestic
Exports
Increased
utilisation
Improved
yields
Market focus
differentiation
Refining, Supply & Trading economics Integrated supply chain management yields improved results
Trading
(sales premia >$3/bbl)
Refining
(Med benchmark & $2/bbl)
Domestic market
7.5 MT
Exports, 3rd parties (Platts Med FOB based)
7.5 MT
ELPE
Refining System
16 MT
NCI: 9.6
12%
55%
25%
8%
Fuel oil Middle Distillates
Gasoline Other
9
89%
11%
High sulphur
Low sulphur
8%
12%
55%
25%
Other
Fuel Oil
Gasoline
Middle Distillates
Marketing
(Cost +)
Domestic
3.5MT
International
2MT
Petchems
(Benchmark Pricing plus premia)
Domestic and international
Markets (PP + BOPP – 225kt)
10
ELPE realised vs benchmark* margin ($/bbl)
(*) System benchmark calculated using actual crude feed weights
(**) Includes PP contribution which is reported under Petchems
Refining, Supply & Trading – Performance Consistent over-performance vs benchmark margin at normal operations
25 9 84 132 172 77 Adj.
EBITDA
(€m) 163 143 136
8.0 7.5
10.2 10.2
12.3
8.3
11.8
9.5 10.2
1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16
ELPE system benchmark (on feed) ELPE realised margin**
Cash Flow Profile Post upgrade cashflows support deleverage and increased returns with reduced risk profile
11
Free cash flow – pro forma at mid-cycle economics excl. working capital movements (€m)
Free cash flow
for deleverage
and distribution
Tax Interest Capex EBITDA (pro-
forma run rate)
Benchmark margins & EUR/USD driven
(100-150)
(150-200)
200-400
600-800
(75-125)
9%
7%
10%
9%
25%
40%
PetChems Aviation & Bunkering
Domestic market
Refining International
Exports
GM % by driver /
market
0
100
200
300
400
500
600
700
2020+ 2019 2018 2017 2016
Credit Facilities - Liquidity Full repayment of $400m Eurobond on 16 May out of existing cash reserves; covenants
harmonisation successfully completed
Gross Debt overview (%) – 1Q16
EIB
10%
Debt Capital Markets 37%
Banks (uncommitted)
28%
Banks (committed)
25%
Total:
€3.3bn
Credit Lines Maturity Profile - 1Q16
12
Debt Capital Markets Banks EIB
• L12M Operating cashflow at €549m (Adj. EBITDA – Capex).
• Stand-by facility of €240m established with Greek banks, providing additional headroom to support and
refinancing process
• Considering alternatives in 2H16 to refinance other maturities, subject to market conditions
• DESFA proceeds earmarked to accelerate deleverage
Repaid in
May 2016
Contents
• Hellenic Petroleum Overview
• Industry Update & Market developments
• 1Q16 Results
• Appendix
13
Med regional crude supply Excess supply of sour crude grades (Iraq production growth) leads to favourable crude spreads
for Med refiners; Iran return to the market affecting 2016 balances
14
Crude exports / supply to Med* (kbpd)
B-U spread ($/bbl)
-0.50
0.00
0.50
1.00
1.50
2.00
2.50
2012 2013 2014 2015 2016
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 products Strong demand growth in 2015-16 especially for light-ends; Consumption in Europe also positive
after several years of contraction
15
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
2016 2015 2014 2013 2012 2011
-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 QTD*
FCC Hydrocracking
Recent Industry developments Improvement in European refining environment on positive fundamentals
• Developments in global refining capacity (Middle East, Russia) and inter-regional competitive
position (USGC) key drivers
• Weak crude prices and stronger USD positive for refiners, despite one-off inventory impact
Med complex margins - $/bbl
Med FCC margins:
2.6
$/bbl
3.3 6.5
16 (*) Data updated as of 01/06/2016
4.3
5.1
953
805
765
751
930
10,125
3,722
2,518
2,932
2009
11,413
4,064
2,837
3,353
1,159
MOGAS
ADO
HGO
LPG & Others
2013
6,599
2,670
2,248
2012
7,727
2,913
2,066
1,983
2011
9,267
3,355
2,224
2,883
2010
813829
971
2015
7,103
2,458
2,427
1,389
2014
6,669
2,527
2,358
Domestic market environment Positive 1H15 trend reversed in 2H, following bank holiday and capital controls; auto-fuels flat y-o-
y, with heating gasoil driving overall market demand growth
(*) Does not include PPC and armed forces
Source: Ministry of Environment & Energy
Domestic Market demand* (MT ‘000)
+6%
-7% +6%
+22%
4Q
2,097 1,980
3Q
1,501 1,611
2Q
1,583 1,497
1Q
1,923
1,581
2015 2014
-3%
+43%
+3%
+3%
-11%
-8%
-17%
-15% +1% +7%
17
Contents
• Hellenic Petroleum Overview
• Industry Update & Market developments
• 1Q16 Results
• Appendix
18
FY € million, IFRS 1Q
2015 2015 2016 Δ%
Income Statement
14,258 Sales Volume (MT'000) - Refining 3,615 3,443 -5%
4,672 Sales Volume (MT'000) - Marketing 1,004 995 -1%
7,303 Net Sales 1,879 1,247 -34%
Segmental EBITDA
561 - Refining, Supply & Trading 173 137 -21%
93 - Petrochemicals 19 25 29%
107 - Marketing 14 12 -18%
-2 - Other -1 -4 -
758 Adjusted EBITDA * 205 169 -17%
22 Share of operating profit of associates ** 8 9 15%
581 Adjusted EBIT * (including Associates) 166 129 -22%
-201 Finance costs - net -50 -48 3%
268 Adjusted Net Income * 54 70 30%
444 IFRS Reported EBITDA 155 129 -17%
45 IFRS Reported Net Income 17 32 84%
Balance Sheet / Cash Flow
2,913 Capital Employed 3,836 4,321 13%
1,122 Net Debt 2,085 2,504 20%
165 Capital Expenditure 17 26 49%
32
17
1Q15
+84%
1Q16
169
205-17%
1Q16 1Q15
129
166-22%
1Q16 1Q15
Adj. EBIT (€m)
1Q16 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 •19
IFRS Net Income (€m)
Adj. EBITDA (€m)
1Q16 KEY HIGHLIGHTS
20
• 1Q16 Adj. EBITDA at €169m (€205m LY) and Adj. Net Income at €70m (€54m LY):
– Strong results on improved refining performance, despite weaker margins and Elefsina
maintenance
– Lower international crude and product prices environment, stable EUR/USD
– Record 1Q profitability in Petchems, on higher volumes and margins
– Reduced financing costs
• IFRS Net results of €32m (+84%), affected by inventory losses (€40m in 1Q16) and DEPA
arbitration one-off charge
• Operating cashflow (Adj. EBITDA – Capex) for the quarter at €144m. Net Debt at €2.5bn
(1Q15 €2.1bn) reflects temporary working capital increase, mainly on account of crude
prepayments and higher stocks due to shut-down.
• $400m Eurobond maturing in 16 May 2016, to be repaid from Group’s existing reserves;
Refinancing plans for remaining bonds to be implemented later in the year depending on
market conditions
-1 -4
173
137
19
25
5 12
2
14
12
37
17
1Q15 BenchmarkRefining Margins
FX Elefsina Refinery(Hydrocracker
catalyst change)
Refining Ops Others 1Q16
CAUSAL TRACK & SEGMENTAL RESULTS OVERVIEW 1Q 2016 Improved operations partly offset weaker margins and planned maintenance at Elefsina refinery
21
Adjusted EBITDA causal track 1Q16 vs 1Q15 (€m)
169 205
Refining,
S&T
MK
Chems
Refining,
S&T
MK
Chems
Other
(incl. E&P)
Environment Performance
Other
(incl. E&P)
Contents
• Hellenic Petroleum post upgrade
• Industry Update & Market developments
• 1Q16 Results
• Appendix
22
Shareholding & Governance Controlling shareholders supported successful implementation of long-term strategy
Shareholding structure
6%
8%
36%
Greek State
Retail
7% Int’l institutionals
GR institutionals
POIH 43%
Corporate Governance
Board of Directors:
• Consists of 13 members appointed as per
Articles of Association
• Board Committees (Finance / Audit / HR)
Executive Committee:
• Key management executives with responsibility
for strategy and operations
23
Aviation &
Bunkering
C&I (Construction,
wholesale)
Retail
Greek petroleum market overview and route to market Leading 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
Gasoil Jet
Bunkers
Other
24
300
500
700
900
1100
1300
1500
1700
1Q15 2Q15 3Q15 4Q15 1Q16
Propane, FOB Propylene NWE, CIF Polypropylene NWE
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)
• Competitive advantage in polypropylene - vertical
integration at 85-90% of total production
• Exports account for >60% of total sales; strong export
markets in Turkey, Italy and East Med
• Domestic market share in petchems exceeds 50% in
all products, produced or traded
PP value chain contribution ($/T)
25
Integrated
PP
Margin
Aspropyrgos splitter
contribution
Domestic Marketing Leading position in the Greek market with EKO and BP brands; extensive restructuring
during 2011-2014 restores profitability
Auto-fuels domestic market share evolution (%)
15
2015 (EKO & BP)
> 30
2008 (EKO only)
Adj. EBITDA profitability 2010-2015 (€m)
47
39
25
69
43
2015 2014 2013 2012 2011 2010
26
2011
4.149
2010
4.246
Retail
C&I
Bunkers & Aviation
2015
3.494
2014
3.052
2013
2.971
2012
3.454
Sales volumes per segment (‘000MT)
1.0781.041 982
942 900 909
2012
1.931
949
2011
2.022
981
2010
2.186
1.108 HF
EKO
2015
1.709
800
2014
1.716
816
2013
1.816
874
Domestic Retail network evolution (# PS)
International Marketing
Subsidiaries in neighboring markets increase downstream integration; selective expansion
to improve network control and increase presence in markets of focus
International Marketing: Regional footprint
Adj. EBITDA profitability 2010-2015 (€m) 59
51
4441
4548
2015 2014 2013 2012 2011 2010
27
CY
BU
SER
JPK
2015
1,178
2014
1,079
2013
1,072
2012
1,072
2011
1,041
2010
1,051
Sales volumes (MT‘000)
+5%
-1%
+19%
+5%
Group refineries
83%
3rd party
17%
2015
GREECE
BULGARIA SERBIA
MONTENEGRO
TURKEY
CYPRUS
Exploration & Production Exploration activity focused on Greece
28
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 to be finalised
Block 2 offshore W. Greece
Total 50% (operator), Hellenic Petroleum 25% and Edison International 25% expecting evaluation od submitted offer.
Block 1 and Block 10 offshore W. Greece
Hellenic Petroleum has submitted bids for Block 1 and 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
29
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 companies (EPAs), with rights
until 2036
– International pipelines: Participation in Greece-Bulgaria
Interconnector
DESFA (RAB) – in sale process
– Greece’s gas grid and LNG import terminal owner and
operator
• 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) 2009 2010 2011 2012* 2013 2014 2015
EBITDA 166 211 288 287 196 126 141
Net Income 61 91 191 197 147 83 66
* Adjusted for settlement with PPC
Natural gas transmission network
DEPA Volumes 2009-2015 (bcm)
Consolidated as Associate
2011 2009
3.3
2015
3.6
4.3
3.0
2013 2014
4.2
2012
3.8
3.0
2010
30
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
31
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).
32