Company update June 2019
Contents
• Company and Business Overview
• Investment Highlights
• Balance Sheet & Cash flows
• Financials
• Appendix
2 Company overview Southeast Europe’s leading downstream Group with presence along the Energy Value Chain
OPERATIONAL FOOTPRINT HELLENIC PETROLEUM OWNERSHIP STRUCTURE
Paneuropean Oil and Hellenic Republic Free Float Refinery Industrial Holdings Asset Development S.A. Fund Storage Terminal
Marketing 45.5% 35.5% 19%
Serbia ADJUSTED EBITDA (€M) 2016 - 2018 Bulgaria
Montenegro 834 RNM OKTA 731 95 731 Thessaloniki 100 107 100 Greece 101 93
Aspropyrgos
639 Elefsina 536 548 Cyprus
-6 -7 -10 2016 2017 2018
OtherOther1 (1) Marketing Petrochemicals Refining, Supply & Trading
(1) Includes other activities (exploration and production) which was -€10m in 2018, -€7m in 2017 and -€6m in 2016 3 Business overview Diversified integrated energy portfolio around highly complex refining business
Key Business Units
Refining, Supply & Trading 3 refineries, 15.5m MT of production in 2018 65% market share in Greece, 50-60% of sales exported Extensive logistics platform with strategic positioning for crude supply and regional demand centers
Marketing Domestic: > 30% market share across retail, commercial, aviation and bunkering. Total sales volume c.3.9m MT, 1,739 service stations through marketing subsidiary (EKO and BP brand) International: 306 service stations across Cyprus, Montenegro, Serbia, Bulgaria and Republic of North Macedonia; Total sales volume c.1.1m MT
Petrochemicals 240kt of polypropylene (PP) capacity vertically integrated with HELPE’s refineries >50% of domestic petrochemicals market share, 65% of sales exported
E&P/Power and Gas E&P: Exploration portfolio of eight E&P licences with another one subject to negotiation Power: 810 MW CCGT generation and retail, 300MW renewables pipeline Gas: Gas supply / distribution / retail
4 Refining, Supply & Trading Integrated High-Complexity Regional Refining Hub, with supply advantage and strong domestic and export market positioning CCR VDU INTEGRATED REFINING PLATFORM Thessaloniki Interconnected regional platform of three complex refining assets: 90kbpd – Elefsina: fit-for-purpose configuration, with no residue NCI4: 5.8 / FO output
– Aspropyrgos: large, high-complexity site with SRAR1 & optimised operations VGO2 for 1 upgrading; SRAR & 2 – Thessaloniki: covering the supply needs of Northern 241 KT Aspropyrgos VGO for Greece and South Balkans, complementing HELPE upgrading; 666 KT refining system Elefsina COMPETITIVE SUPPLY & TRADING 106kbpd 148kbpd3 NCI4: 12.0 – Coastal location, refining flexibility and configuration, NCI4: 9.7 relationships with NOCs and traders for crude supply HC FXK and processing optimisation MHU – Logistics infrastructure providing significant FCC Naphtha for reforming competitive advantage in domestic market and and blending; exports throughout the region 360 KT UCO3 for conversion: 155 KT
Source: HELPE Analysis 1 SRAR – Straight Run Atmospheric Residue. 2 VGO – Vacuum Gas Oil. 3 UCO – unconverted oil. 4 As calculated by HELPE. 5 Fuels Marketing Leading domestic market position and regional footprint increasing vertical integration
Domestic Market HELPE Group Subsidiaries: 3.9m MT Retail C&I and Other Refining Market Share 30-40% Supply & CoMo Bunkering Trading 232 sites CoDo / DoDo Aviation 16.5m MT 1,507 sites
International Market HELPE Group Subsidiaries: 1.9m MT C&I, Aviation Retail & Bunkering CoMo ~20% of 220 sites international market CoDo volumes sourced 61 sites from 3rd parties DoDo 25 sites
Source: HELPE – number of petrol stations end of 2018 6 Petrochemicals Operations centered on utilising refining assets for higher value extraction; trading geared to export markets
. Production and marketing of Polypropylene (PP), BOPP Film, polymers and solvents through the further processing of refinery production
Margin contribution by product (€/T)(1) 389 269 105 370
Propane Propylene Polypropylene BOPP
Petrochemicals value chain Domestic and 80-85% c.10% International market BOPP BOPP film Propane Propylene PP plant (26 kt) Aspropyrgos Thessaloniki splitter PP plant (240 kt) c.90% Imports 15-20% Competitive advantages Vertical integration Geographical diversification . 80-85% of total production integrated using . 65-70% of sales exported to Turkey, Italy, Iberia and Eastern Med, used as raw propylene produced at Aspropyrgos materials in a number of applications in manufacturing and other industries Best-in-class Polypropylene production Strong domestic market share technology . Domestic market share in petchems > 50% in all products, produced or traded . Lyondell Basell’s Spheripol technology Low exposure to refining margins (1) as of FY17 . PP margins largely unrelated to refining margins Source: Platts, Company information 7 Exploration & Production Diversified Offshore and Onshore Portfolio in Greece with experienced partners
BLOCKS TYPE OWNERSHIP STATUS OPERATIONAL FOOTPRINT ● Offshore ● HELPE* (50%) ● Leads and prospects mapped with 3D 1 Patraikos Gulf ● Lease ● Edison (50%) seismic ● One committed exploration drilling until Apr-2020) ● Offshore ● HELPE (25%) ● Prospective exploration area surrounding Sea of Thrace ● Concession ● Carfrac (75%) the Prinos oilfield and Kavala gas field 2 7 2 Concession 5 3 NW ● Onshore ● HELPE* (100%) 4 Peloponnese ● Lease Arta- Preveza ● Onshore ● HELPE* (100%) 8 4 ● Lease ● G&G exploration and environmental 1 Block 2 ● Offshore ● Total* (50%) studies 5 (Offshore W. ● Lease ● HELPE (25%) 3 Greece) ● Edison (25%) 6 Block 10 ● Offshore ● HELPE* (100%) ● Lease agreement signed 6 (Offshore W. ● Lease Greece) Block 1 ● Offshore ● HELPE* (100%) ● Submitted bids 9A 7 (Offshore W. ● Lease Greece) Ionian Block ● Offshore ● Repsol* (50%) ● Lease agreement signed E&P 8 (Offshore W. ● Lease ● HELPE (50%) Licensed areas (HELPE) 9B Greece) West of Crete ● Offshore ● Total* (40%) ● Lease agreement finalized Areas where HELPE has been declared 9A as selected applicant and/or under negotiation ● Lease ● Exxonmobil SouthWest (40%) 9B Crete Blocks ● HELPE (20%) * Indicates Operatorship 8 Power – ELPEDISON and Renewables Second largest IPP in Greece; development of a renewable energy portfolio
ELPEDISON OVERVIEW RENEWABLES 5 YEAR PLAN
• Installed capacity • 26 MW Elpedison B.V., a 50/50 JV between HELLENIC PETROLEUM and Edison Italy’s 2nd largest electricity • Financial • EBITDA ≈ €3m producer and gas distributor (part of EdF Group) • 300MW licensed Owns 76% of 810MW of installed CCGT capacity: / under a 390MW plant in Thessaloniki and a 420MW in development2018 – 2022 Thisvi Capex: €260m Increasing power trading & marketing, considering credit exposure; growing independent supplier with 3.5% market share 2022 TARGET Energy market in Greece under restructuring; new Balanced RES portfolio with substantial installed capacity regulatory framework (EU Target Model) expected in Low risk (market & volume) energy activities 2020 300MW installed Renewables portfolio target > 300MW (wind, PV, EBITDA >€30m biomass), with 26MW in operation
Consolidated as Associate 9 Natural Gas – DEPA Group Gas: 35% Participation in DEPA, Greece’s Incumbent Gas Company
OVERVIEW OF DEPA GREEK GAS MARKET DEMAND AND DEPA MARKET SHARE (BCM) 95% 96% 95% 86% 89% 69% 58% DEPA currently in restructuring process, ahead of its privatization; 2 separate entities, DEPA Commercial and DEPA 4,7 4,6 4,1 3,8 Infrastructure will be formed 3,7 1,6 1,3 3,0 1,7 1,2 2,8 1,2 DEPA Commercial (competitive business) will include: 1,2 1,3 3,1 2,8 2,5 2,6 2,9 – Gas Supply & Wholesale business: 1,5 1,7
o Main Greek importer of pipeline natural gas and LNG, 2012 2013 2014 2015 2016 2017 2018 Retail & Industry Power Generation ---DEPA Market Share % (w/o Auctions) through long-term contracts DEPA VOLUMES (BCM) 3,9 o c.150 industrial customers and various SME clients 3,7 0,0 3,7 3,7 0,2 0,3 3,3 1,4 2,8 2,8 0,5 – Gas Retail business through its wholly-owned subsidiary 1,0 0,8 0,7 0,1 0,2 0,7 EPA Attikis 1,1 1,0 0,7 2,6 2,5 2,6 2,4 • DEPA Infrastructure (regulated business) will include: 1,5 1,5 1,9
– Gas Distribution business: network covering more than 2012 2013 2014 2015 2016 2017 2018 5,000 km in Attica, Thessaloniki/Thessaly (EDAs) and Rest Auctions & Other Retail & Industry Power Generation of Greece (DEDA) (€M) DEPA GROUP 2012 2013 2014 2015 2016 2017 2018 – International projects (Interconnectors with Bulgaria, Revenue 1,882 1,553 1,088 939 885 1,142 931 Italy; East Med Pipeline) EBITDA* 201 196 144 94 227 237 219 • HELPE will own 35% in each entity Earnings After Tax* 133 147 83 33 131 133 99
NI Share to ELPE* 37 60 30 23 36 46 35 *2012 Adjusted for settlement with PPC; 2015 adjusted for settlement with BOTAS; 2016 adjusted from previous year bad debt provisions and one-off items, 2018 adjusted for DESFA and Zenith sales impact, while EBITDA includes associates ELPE Book Value 551 598 590 598 631 659 348
Consolidated as Associate 10 DESFA sale Successful exit from gas transmission business, in line with Group strategy for monetizing non core assets and balance sheet deleverage Transaction Overview
On 20 December 2018 the sale of 66% of DESFA’s share capital (31% for HRADF and 35% for HELPE S.A.) to “SENFLUGA Energy Infrastructure Holdings S.A.”, a JV of Snam S.p.A, Enagás Internacional S.L.U. and Fluxys S.A. was successfully completed for a total cash consideration of €535m
Financial Statements impact • Proceeds recorded as dividend; Investments in Associates reduced by the Receipt of cash consideration of €284m carrying value of 35% of DESFA (€329m) (HELPE share) reflected in FY18 Group • P&L affected by the €45m impairment and a deferred tax liability on future financial statements: sale of DEPA of €47m • Investing cash inflows of €284m
Use of Proceeds
AGM approved an one-off amount of €76m (€0.25/share) to be distributed as part of the final dividend; remaining to be applied for debt reduction
11 Strong Financial Performance Strong performance post investment plan and transformation, consistent with industry dynamics
ADJUSTED EBITDA (€M)
€ / $ 1.11 1.11 1.13 1.18
Benchmark 5.9 4.5 5.0 4.5 Margin 834 ($/bbl) 758 731 730
2015 2016 2017 2018
FREE CASH FLOW1 (€M) AND CASH CONVERSION2 (%)
Cash Conversion 78% 83% 75% 78% 605 625 593 572
2015 2016 2017 2018 Source: HELPE analysis 1 Adjusted EBITDA – Capex 2 (Adjusted EBITDA – Capex) / Adjusted EBITDA 12 Strategy Update Invest in core business and renewables; relaunch competitiveness improvement initiatives
STRATEGY TARGETS Capture positive refining cycles 1 Integrate and realise benefit of investments IMO readiness
Vertical integration 2 Rebalance market position and de-risk business model Revisit route-to-market models
Digital & Energy Transformation 3 Continue competitiveness improvement Debottlenecking conversion units and margin growth Procurement optimization / cost to serve Additional EBITDA €100-150m
Gas & Power restructuring Manage business portfolio and develop selective growth 4 E&P opportunities in Greece areas Develop renewables portfolio
Business model and balance sheet de-risking 5 Strengthen financial position Reduce cost of funding
13 New strategy - key profitability growth levers Refocus on competitiveness improvement initiatives, new growth platform, as well as IMO implementation to provide significant EBITDA uplift*
Adjusted EBITDA expected evolution* (€bn)
€300-400m Capex >1bln
0.7bln
• Digital • Develop Transformation Renewables • Energy efficiency • Conversion units • Procurement debottlenecking / optimisation margin improvement
2018 Baseline Competitiveness Growth E&P cash calls IMO impact 2020+ subject to prevailing market environment
(*) Projections based on 2018 market conditions except for IMO impact on product cracks and crude spreads; excludes IFRS 16 impact 14 IMO / MARPOL bunkering regulation Global change in bunkering fuel from 2020, key next milestone for refining industry
Expected impact on refining industry Estimated bunkering fuel evolution (mbpd)
• High level of compliance anticipated 5,31 5,31 5,15 • 2-3.5 mbpd (>20% of global HSFO demand) to be displaced 1,31 2,36 • MGO and VLSFO expected to cover shortfall 3,69 • Scrubber technology to support market normalisation in medium term 1,69 3,81 • Key issues 0,33 – Crude grades supply & differentials 1,16 1,16 Middle distillates, VLSFO availability and cracks – 0,00 0,03 0,10 0,13 – HSFO supply / disposal and pricing 2018 2020 (70% 2020 (full compliance) compliance) – Scrubber adoption & reliability
Distillate VLSFO HSFO & LSFO LNG*
(*) Volume of oil substituted by LNG Source: Wood Mackenzie 15 HELPE IMO Refining model overview Planned switch to IMO crude grades to reduce cracked HSFO production at Aspropyrgos; testing of new operating mode already in process ahead of new bunkering fuel specs implementation
ELEFSINA THESSALONIKI** ASPROPYRGOS 2018 96% 100% 74% 11% 33% 41% 31%
21% 34% 67% 38% 21% 24% 4% 0% 0% 0% 0% 0% 0% 5% 0% Feed Output Feed Output Feed Output
100% 100% 16% 9% 33% 41% 22% 28% 2020*** 21% 46% 67% 62% 38% 4% 13% 0% 0% 0% 0% 0% 0% 0% 0% Feed Output Feed Output Feed Output Feedstock Production
HS & MS crude LPG/Naphtha/Others FO HS* (*) Includes Bitumen LS crude Mogas FO IMO (**) others include intermediates – SRFO, VGO and others LS IMO crude MD (***) Assuming normal operations 16 Recent Industry developments European refining environment driven mainly by supply dynamics; IMO / MARPOL bunkering regulation key next milestone for refining industry
Med complex margins - $/bbl
2.4 3.3 6.4 5.0 5.9 5.0 3.1
8
7
6
5 4
3
2 FCC 1 Hydrocracking 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19
• 2018 margins impacted by supply developments (US production, Iran sanctions snapback) and demand growth evolution, as well as diesel recovery • Key drivers for Med margins in 2019: – Regional and global supply trends: sanctions, OPEC supply, changing global supply mix – Global refinery capacity evolution / utilisation – Slowing demand growth – IMO / MARPOL implementation Med FCC margins: $/bbl
(*) Data updated as of May 2019 17 Contents
• Company and Business Overview
• Investment Highlights
• Balance Sheet & Cash flows
• Financials
• Appendix
18 Key Investment Highlights
Advantaged Eastern Location and Market Positioning
Recently Upgraded, High Complexity and Well-Operated Refining and Petchem Assets
Extensive Logistics Platform Enhancing Flexibility and Competitiveness
Integrated and Diversified Business Model
19 Structurally Advantaged Eastern Mediterranean Location Sufficient supply combined with flexibility allows to capture market opportunities and netback uplift
CRUDE IMPORTS INTO EUROPE BY SOURCE (KBPD) COMMENTARY
Location advantage offers wide range of crude supply opportunities captured through flexible and complex refining operations
Americas Eastern Med supply
diversity
Algeria
Libya Egypt
Source: Wood Mackenzie, company filings 20 Assets strategically located for exports in diesel-short Med region complementing a leading domestic business
Exports sales (MT ‘000) Projected Diesel Balances in Med Domestic market shares
Supply/Demand (kbpd) Refining 21% 36% 44% 49% 49% 56% 52% 57% (16m MT of capacity) 9.395 8.644 % of 8.384 Other total sales HELLENIC 6.941 PETROLEUM 6.589 60% - 65% 5.518
4.501 -604
Marketing 2.377 -867 (3.9m MT of sales)
HELLENIC -1.036 -1.097 PETROLEUM -1.117 >30% 2015 2020 2025 2030 2035 Other 2011 2012 2013 2014 2015 2016 2017 2018 Diesel/Gasoil
Middle distillates exports c. 50%
21 High complexity interconnected refining system and logistics assets Diversified, complex and interconnected asset base, with crude flexibility, high value output and wholesale margin capacity support over-performance margin
Group refinery footprint and operating Crude slate FY18 (%) Product yield FY18 (%) model System Complexity: NCI3 9.3 Other crude & feedstock 10% 15% Urals 5% S. Arabia 9% CCR 40 6% Thessaloniki VDU % 22%
90kbpd Iran Naphtha for 11% Iraq reforming SRAR 1 & NCI3: 5.8 29% VGO 1 for 51% upgrading SRAR¹ and 60 VGO1 for Egypt % 5% upgrading Libya Elefsina Aspropyrgos 7% CPC 18% 106kbpd 148kbpd 12% 2018 NCI3: 12.0 NCI3: 9.7 1H18 Sour Sweet Naphta/Other LPG HC MHU Gasoline FXK FCC Middle Distillates FO Naphtha for reforming
* SRAR (Straight Run Atmospheric Residue) and VGO (Vacuum Gas Oil) are intermediate products 22 High complexity interconnected refining system and logistics assets Consistent over-performance vs benchmark refining margins through cycle
HELPE realized margin* - ($/bbl)
12,1 10,9 10,9 10,2 10,6 10,3 10,1 10,6 10,2 9,9 9,3 8,6 8,3
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 HELPE system benchmark (on feed)
Drivers of HELPE realized margin
1 Commercial / wholesale trading premia – Superior logistics and trading capabilities offer competitive market positioning
2 Efficient refining operations – High availability, improved yield performance, density escalation and synergies of integrated refining system Crude slate optimisation 3 – Significant flexibility to outperform benchmark via alternative crude sourcing through facilitated by favourable geographical positioning and complex system configuration, enabling capturing of market opportunities
* System benchmark calculated using actual crude feed weights. Includes wholesale trading premia and propylene contribution which is reported under Petchems 23 Extensive Logistics Platform Enhancing Flexibility and Competitiveness Significant storage capacity, pipeline connectivity and ability to source key profitable markets support competitive positioning and gross margin maximization STORAGE CAPACITY REFINERIES1 Storage Capacity (mm³) 6.9
Serbia MARKETING Bulgaria Storage Capacity (mm³) 1.1 Domestic 0.4 International 0.7 Montenegro FYROM TOTAL Thessaloniki Storage Capacity (mm³ / # tanks) 8.0 LOGISTICS ASSETS
Aspropyrgos
Elefsina
Cyprus
3 coastal refineries with sea access, pipelines and truck and rail loading Pipeline facilities Natural gas supply to all refineries via dedicated pipelines Fuel Airport Depot & LPG Bottling Refinery Terminals into Plane Facilities Plants Pipeline connectivity between Aspropyrgos and Elefsina refineries, storage facilities, major offtakers’ facilities, Athens airport, army facilities, etc.
1 Includes values for Kalohori Terminal (Thessaloniki Refinery) and Megara Terminal (Aspropyrgos Refinery) 24 Integrated business model overview and economics Downstream value chain integration yields improved returns vs Platt’s reference pricing and increases earnings stability
SUPPLY REFINING TRADING MARKETING
(Med Benchmark + Overperformance) (Platt’s + Sales Premia) Crude Highly Domestic 4.0m MT High Value Domestic Market Supply Complex Asset Product Yield2 4.5m MT Flexibility Base HELPE 12% Platt’s Platt’s Refining System Aviation & Bunkering 23% 2.7m MT 89% 53% Exports, Intra-group International 1.5m MT Marketing 1.2m MT 11% 12% rd 16m MT Other Middle Distillates Exports, 3 Parties High sulphur NCI: 9.3 Gasoline Fuel Oil 8.0m MT Low sulphur Wholesale 0.7m MT
Strong Export Orientation
PETCHEMS High Value (Benchmark Pricing Plus Premia) Networks Domestic and international Markets (PP + BOPP – 240kt)
1 Normalised operations based on current configuration. Note: schematic excludes gas, power, renewables, engineering and shipping operations 25 Diversified business model limits exposure to cyclical refining margins
2018 Adj. EBITDA breakdown (€m) Key industry macro drivers for Group EBITDA €m
No / low dependency on gross refining margin 730
-$1.0/bbl (100) 100 +$1.0/bbl 182 75%
355 730 (70) 70 548 -10c. FX EUR/USD +10c. FX EUR/USD
100
93 • Illustrative EBITDA impact from change in benchmark margin Retail Petrochemicals Wholesale Non-refining Refining EBITDA 2018 Adj. EBITDA supply, margin derived at $4.5/bbl or exchange rate logistics and EBITDA overperformance • Based on normal operations throughput of 110-120mmbbl and 2018 price environment
Source: Company information Note: The above is not intended to be representative of future performance 26 Contents
• Company and Business Overview
• Investment Highlights
• Balance Sheet & Cash flows
• Financials
• Appendix
27 Credit facilities - Liquidity Net debt and gearing at target levels; financing cost reduction continues, with further opportunities in 2019-20; 2019 Eurobond to be repaid out of existing cash balances
1Q19 Maturity Profile (€m) Gearing ratio*
45% 43% 40% 39% Eurobond €325m 38% @ 5¼%: c. €17m
To be repaid out of existing cash 35% balances 2019 2020 2021 2022 2023 2014 2015 2016 2017 2018 EIB Banks Debt Capital Markets
HELPE Bond (Mid YTM %) Financing Costs (€m) 5,0 -32% 4,5 ELPEGA 47/8% 2021 EUR450m 215 201 201 4,0 165 3,5 146 3,0 2,5 2,0 1,5 1,85** 1/1/2017 1/7/2017 1/1/2018 1/7/2018 1/1/2019 2014 2015 2016 2017 2018
*Net Debt/Capital Employed ** As of 11/06/2019 28 Dividend policy Improved operating cash flows and reduced interest costs support dividend yield
EPS and DPS 2016-2018 (€/share)
1,22 1,15 €0.25/share 1,08 special 0,97 distribution 0,87 (DESFA 0,75 transaction) 0,70
0,40
0,20 0.5
2016 2017 2018
Clean EPS Reported EPS DPS
• AGM approved a final dividend of €0.25/share, as well as an extraordinary distribution of €0.25/share out of DESFA sale proceeds, taking FY18 DPS to €0.75/share (FY17: €0.4/share)
29 Cash Flow Profile Post 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)
600-850
(150-200)
(100-150)
(60-140) 200-350
Benchmark margins & EUR/USD driven
EBITDA (pro- Capex Interest Tax Cash flow for forma run rate) deleverage and distribution
30 Contents
• Company and Business Overview
• Investment Highlights
• Balance Sheet & Cash flows
• Financials
• Appendix
31 Key financials
€ million, IFRS 2010 2011 2012 2013 2014 2015 2016 2017 2018 1Q19 Income Statement Sales Volume (MT’000) - Refining 14,502 12,528 12,796 12,696 13,538 14,258 15,618 16,069 16,490 3,551 Net Sales 8,477 9,308 10,469 9,674 9,478 7,303 6,680 7,995 9,769 1,991 Segmental EBITDA - Refining, Supply & Trading 338 259 345 57 253 561 536 639 548 80 - Petrochemicals 50 44 47 57 81 93 100 95 100 25 - Marketing 114 66 53 68 90 107 101 107 93 20 - Other (incl. E&P) -28 -6 0 -5 -7 -2 -6 -7 -10 -3 Adjusted EBITDA * 474 363 444 178 417 758 731 834 730 123 Adjusted associates’ share of profit 30 67 69 57 28 22 29 31 35 18 Adjusted Net Income * 213 140 229 -120 2 268 265 372 296 37 Balance Sheet / Cash Flow Capital Employed 4,191 4,217 4,350 3,905 2,870 2,913 3,903 4,173 3,854 3,971 Net Debt 1,659 1,687 1,855 1,689 1,140 1,122 1,759 1,800 1,459 1,522 Capital Expenditure (incl. refinery 709 675 521 112 136 165 126 209 158 31 upgrades)
(*) Calculated as Reported less the Inventory effects and other non-operating items 32 1Q19 HIGHLIGHTS Good performance despite weaker environment
• Refining margins deteriorated q-o-q and y-o-y – Med complex benchmark refining margins at the lowest level in 4.5 years – Tighter crude availability on supply logistics issues and geopolitical developments leading to negative B-U spread – Higher demand in Greek domestic market due to heating gasoil
• 1Q19 Adj. EBITDA at €123m (-18%) – Reduced refineries utilization due to certain units maintenance shut-downs in 1Q19 – Overperformance sustained at high levels, partly offsetting weaker benchmarks – Strong US$ supported 1Q19 results – New IFRS 16 positive impact of €9m on Adj. EBITDA (mostly Marketing) included in 2019 accounts
• Adj. Net Income at €37m (-40%) with 1Q19 IFRS NI at €47m; further decline in financing costs – IFRS Reported results supported by crude oil price recovery; inventory valuation gains in 1Q at €19m – Like-for-like financing costs further reduced by 16% (excl. IFRS16 impact) – Increased Elpedison profitability drives higher Associates contribution; DESFA no longer included in Group results
• Balance sheet improved vs 1Q18 – Net Debt at €1.5bn and gearing at 38% – Plan to fully repay €325m Eurobond, which matures on 4 July 2019, out of own cash reserves
33 1Q19 Group key financials
Refining sales volumes (m MT) FY LTM € million, IFRS 1Q -13% 4.1 2018 1Q 2018 2019 Δ% 3.6 Income Statement 16,490 15,939 Sales Volume (MT'000) - Refining 4,102 3,551 -13% 4,955 5,009 Sales Volume (MT'000) - Marketing 1,046 1,100 5% 9,769 9,592 Net Sales 2,168 1,991 -8%
Segmental EBITDA 1Q18 1Q19 548 515 - Refining, Supply & Trading 113 80 -29% 100 99 - Petrochemicals 26 25 -4% Adj. EBITDA (€m) 93 99 - Marketing 14 20 46%
-18% -10 -9 - Other -4 -3 30% 149 730 149 -18% 123 703 Adjusted EBITDA * 123 35 39 Share of operating profit of associates ** 14 18 30% 567 536 Adjusted EBIT * (including Associates) 116 84 -27%
1Q18 1Q19 -146 -142 Financing costs - net -39 -35 10% 296 271 Adjusted Net Income * 62 37 -40% Net Debt (€m) 711 681 IFRS Reported EBITDA 166 135 -18%
-23% 215 187 IFRS Reported Net Income 74 47 -37% 1,973 Balance Sheet / Cash Flow 1,522 3,854 Capital Employed 4,419 3,971 -10% 1,459 Net Debt (excl. IFRS16 leases) 1,973 1,522 -23% 38% Net Debt / Capital Employed 45% 38% - 158 163 Capital Expenditure 27 31 17%
Note: 2019 results incorporate IFRS 16 impact (*) Calculated as Reported less the Inventory effects for R,S&T and other non-operating items 1Q18 1Q19 (**) Includes 35% share of operating profit of DEPA Group adjusted for one-off items Domestic market environment Colder weather drives heating oil consumption and domestic market higher y-o-y; bunkering volumes up due to higher international marine offtake
Domestic Market demand* (MT ‘000) +5% 1,810 1,732 -3% +5% 189 LPG & Others 181 +4% -1% -2% 1,731 1,810 1,934 1,878 HGO 465 560 +21% 1,525 1,494 1,604 1,588
Diesel 568 569 -
MOGAS 517 492 -5% 2Q 3Q 4Q 1Q 1Q18 1Q19 2017 2018 2019
Aviation & Bunkers demand (MT ‘000) +15% 831 +3% +15% 721 +6% 1,336 1,378 +19% 831 1,051 1,109 721 965 596 +20% 812 Bunkers FO 495
+3% Bunkers Gasoil 111 114 Aviation 116 120 +4% 2Q 3Q 4Q 1Q 1Q18 1Q19 2017 2018 2019
(*) Does not include PPC and armed forces Source: Ministry of Environment and Energy 35 Causal track & segmental results overview 1Q19 1Q19 profitability affected by weaker macro and refinery production slow down due to maintenance turnarounds
Adjusted EBITDA causal track 1Q19 vs 1Q18 (€m)
149 Environment Performance
9 20 14 MK 21 13 123 8 Chems 26 20 Partial refining MK maintenance 25 outages Chems 500kT
113 Refining, S&T 80 Refining, S&T
-3 -3 Other Other (incl. E&P) (incl. E&P) 1Q18 Benchmark FX New IFRS16 Asset utilisation / Others 1Q19 Refining Margins Ops + Crude differentials
36 Contents
• Company and Business overview
• Investment Highlights
• Balance Sheet & Cash flows
• Financials
• Appendix
37 Key Milestones A Long Journey of Transforming Greek State-Owned Companies into to a Modern Regional Energy Group
PETROLA Listing of Elpedison: 50/50 JV Elefsina(Elefsina new Group in with Italy’s Refinery) ASE/LSE Edison, in Power POIH becomes Transformation progress DEPA restructuring DEP & strategic investor completed with c.€300m in view DEPEKY with 25% stake cash benefits p.a. of privatisation (Greek E&P)
1960 – 1998 2003 2007 2009 2011 2012 2014 2018 2019 1998
ELDA Merger with Acquisition of BP’s Elefsina DESFA stake sold (Aspropyrgos(Aspropyrgos Refinery) Petrola Ground Fuels business Refinery upgrade for €284m; Hellas in Greece completed DEPA M&A restructuring
ESSO - Thessaloniki Refinery PAPPAS upgrade completed (Thessaloniki Refinery)
Shareholding Events
Source: HELPE 1 POIH: Paneuropean Oil and Industrial Holdings 38 Corporate Governance & Shareholding Structure Controlling Shareholders’ Agreement Supported Successful Transition from State to Private Sector Group CORPORATE GOVERNANCE SHAREHOLDING STRUCTURE
Board of Directors: 5,0% 6,0% • Consists of 13 members (3 executive and 10 non- executive, 2 independent) 8,0% • Appointed as per Articles of Association (7 appointed by Hellenic Republic, 2 appointed by 45,5% POIH, 2 elected by employees, 2 elected by free float Shareholders special general meeting) • Board Committees 35,5% – Audit, Remuneration & Succession Planning, Oil Supply, Labour Matters, Financial and Economic Planning POIH International Institutions HRADF Greek Institutions Retail
39 Summary Group Structure1
HELLENIC PETROLEUM S.A.
Domestic Marketing International Marketing Exploration & Production Others Renewables Gas & Power associates
DEPA Group HPF plc RENEWABLE 35% ELPET HELPE E&P (Gas supply, EKO S.A. HPI AG (funding) ENERGY distribution & VALKANIKI HOLDING SOURCES retail)
49% DIAXON EKOTA KO HP SERBIA ELPE 80% UPSTREAM S.A. 51% ELPE LARCO 50% VARDAX (OPCO) (Petchems – KOKKINOU ELPEDISON B.V2 33% BOPP) SAFCO HP BULGARIA Asset Companies Power Generation & ELPE Asprofos 51% HP CYPRUS 82% 50% ELPE LARCO Trading KALYPSO OKTA PATRAIKOS S.A. (50% EDISON) SERVION (Engineering 75% 25% Services) Shipping JP Block 2 ELPEDISON S.A. (50% Total, 25% companies Edison) ENERGEIAKI •EKO-ATHINA Shipping PYLOU •EKO- HP Consulting 25% Sea of Thrace Companies METHONIS ARTEMIS (75% Calfrac) •HP •EKO- Apollon DIMITRA Global3 •HP ATEN •EKO- (Albania) HELPE Poseidon ENERGEIAKI AFRODITI PELOPONNISOS SA •EKO-IRA
HELPE ARTA - (1) All companies 100% owned unless otherwise noted PREVESA (2) 45% owned through HPI (3) Dormant co under HP 40 Causal track & Segmental results overview FY18 Improved operational performance and supply optimization partly offset weaker refining backdrop
Adjusted EBITDA causal track FY18 vs FY17 (€m)
Environment Performance 834
MK 107 86 730 22 51 64 10 Chems 95 93 MK
100 Chems -147 +42
Refining, 639 S&T 548 Refining, S&T
Other -7 -10 Other (incl. E&P) (incl. E&P)
FY17 Benchmark FX Cost of CO2 Asset utilisation / Others FY18 Refining Margins emissions deficit Ops + Supply optimisation
41 Cash flow profile FY18 Strong operational cash flows and DESFA disposal accelerate balance sheet deleverage
Net Debt / EBITDA* 1.9x Group Cash flow and Net debt evolution FY18 (€m)
1.800 280 284 24 69 1.459 711 174 ------
293
Net Debt FY 17 EBITDA Interest, Tax Capex & Change in DESFA sale Dividends from Other Net Debt FY18 & Dividends acquisitions working capital associates Movements
* Includes associates contribution 42 Assets overview Core business around downstream assets with activities across the energy value chain
DESCRIPTION METRICS • Exploration rights in 5 Exploration & areas • Portfolio of exploration assets in Greece Production • 4 more areas in advanced award process stages • Complex (recently upgraded) refining system: • Capacity: 16m MT Refining, Supply – Aspropyrgos (FCC, 148kbpd) • NCI: 9.3 – Elefsina (HDC, 106kbpd) & Trading • Market share: 65% – Thessaloniki (HS, 90kbpd) • Tankage: 6.9m M3 • Pipeline fed refinery/terminal in Northern Macedonia
Petrochemicals • Basel technology PP production (integrated with refining) and trading • Capacity (PP): 240 kt • > 60% exports in the Med basin
Domestic • Leading position in all market channels (Retail, • 1,739 petrol stations Marketing Commercial, Aviation, Bunkering) through EKO and BP • >30% market share networks • Sales volumes: 4m MT
International • Strong position in Cyprus, Montenegro, Serbia, • 306 petrol stations Bulgaria, Northern Macedonia Marketing • Sales volumes: 1.1m MT • Advantage on supply chain/vertical integration
• ELPEDISON: JV with Edison/EdF • Capacity: 810 MW • DEPA/DESFA GROUP: 35% in Greece’s incumbent Power & Gas NatGas supply company (DESFA sold in December • Volumes (2018): 3.3bcm 2018)
• Renewables (Wind, PV), targeting >300MW • 26MW operating
43 Greek petroleum market overview and route to market Leading domestic market position through vertical integration and competitive logistics assets Greek Refining capacity: 25m MT
16m MT
60-65% 30-35% 3rd party HELPE exports: 9.5m MT Domestic market: 11.5m MT Imports
HELPE Group HELPE Group Independent Specialty markets 3rd party MOH Group 0-10% subsidiaries:HELPE Group subsidiaries: marketing (PPC, public sector): exports: subsidiaries: subsidiaries: companies: 8m MT 1.5m1-2MT MT 4m MT (30%) 4m MT (30%) 1.5m MT (15%) 2.5m MT (25%)
Greek market product breakdown Others Fuel Oil 5% Gasoline 9% 19% Retail C&I Aviation & 23% (Construction Bunkers 24% Bunkering Diesel wholesale) 10% 10% Jet Gasoil 44 Domestic market environment Marginal increase in auto-fuels demand, with consistent substitution of gasoline from diesel; heating gasoil consumption drives headline
Domestic Market demand* (MT ‘000)
+6% -1% -2% -3% 7,091 ’17-’18 7,043 6,906 6,662 6,691 817 886 837 LPG & Others 807 808 -4% 1,389 1,199 HGO 968 1,172 969 -17%
DIESEL 2,364 2,427 2,538 2,552 2,619 +3%
MOGAS 2,524 2,458 2,420 2,345 2,294 -2%
2014 2015 2016 2017 2018
(*) Does not include PPC and armed forces Source: Ministry of Environment and Energy 45 Key Diesel / Gasoil balances in the Med region, kb/d (2020)
France Slovenia -441 -35 Serbia -11 -12 Croatia -13 Italy Bosnia -4 Montenegro Portugal Spain +73 -3 NM -18 Turkey +20 -51 Albania -260 Syria +79 -11 +49 Greece Cyprus Morocco Algeria -37 +23 Lebanon -114 -69 Tunisia +6 Libya Egypt Israel -162 -8
Diesel / Gasoil surplus (2020) Diesel / Gasoil deficit (2020)
Source: KBC Advanced Technologies, Company information. 46 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 BOPP Biaxially Oriented Polypropylene CCR Continuous Catalytic Reforming CCGT Combined Cycle Gas Turbine COMO Company Owned Manager Operated CPC Caspian Pipeline Consortium DCM Debt Capital Markets DODO Dealer Owner Dealer Operated FCC Fluid Catalytic Cracking HDC Hydrocracking HGO Heating Gasoil HS Hydroskimming HSFO High Sulfur Fuel Oil IMO International Maritime Organization IPP Independent Power Producer LNG Liquefied Natural Gas LPG Liquid Petroleum Gas LSFO Low Sulphur Fuel Oil MOGAS Motor Gasoline 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. NOC National oil Companies 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. SRAR Straight Run Atmospheric Residue ULSD Ultra-low-sulphur Diesel VDU Vacuum Distillation Unit VGO Vacuum Gas Oil 47 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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