"Сибур": финансовые результаты за I квартал 2021 года

Page 1

1Q 2021 Operational and Financial Results

29 April 2021


DISCLAIMER

The information contained herein pertaining to SIBUR (the "Company") has been provided by the Company solely for use at this presentation. By attending this presentation, or by reading these presentation slides, you agree to be bound by the limitations set out below. This presentation does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of, or be relied on in connection with, any contract or investment decision relating thereto. No representation or warranty, either express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment. The Company accepts no responsibility for any losses howsoever arising, directly or indirectly, from this presentation or its contents. The material contained in this presentation is presented solely for information purposes and is not to be construed as providing investment advice. As such, it has no regard to the specific investment objectives, financial situation or particular needs of any recipient. There may be material variances between estimated data set forth in this presentation and actual results, and between the data set forth in this presentation and corresponding data previously published by or on behalf of the Company. This presentation contains forward-looking statements, including (without limitation) statements containing the words "anticipates," "expects," "intends," "may," "plans," “forecasts,” "projects," "will," "would", "targets,“ “believes” and similar words. These statements are based on the current expectations and projections of the Company about future events and are subject to change without notice. All statements, other than statements of historical fact, contained herein are forward-looking statements. Forward-looking statements are subject to inherent risks and uncertainties, such that future events and actual results may differ materially from those set forth in, contemplated by or underlying such forward-looking statements. The Company may not actually achieve or realize its plans, intentions or expectations. There can be no assurance that the Company's actual results will not differ materially from the expectations set forth in such forward-looking statements. Factors that could cause actual results to differ from such expectations include, but are not limited to, the state of the global economy, the ability of the petrochemical sector to maintain levels of growth and development, risks related to petrochemical prices and regional political and security concerns. The above is not an exhaustive list of the factors that could cause actual results to differ materially from the expectations set forth in such forward-looking statements. The Company and its Affiliates are under no obligation to update the information, opinions or forward-looking statements in this presentation.

2


1Q 2021 KEY HIGHLIGHTS KEY DEVELOPMENTS FINANCIALS Revenue at RUB 173 bln (up 13% qoq) / $2.3 bln (up 16% qoq / up 28% yoy)

KEY RESULTS RUB bln

 

 

(1) (2)

SIBUR and TAIF group have initiated a number of steps to eventually combine their petrochemical businesses (Apr’21). In the first step, existing TAIF shareholders will transfer a controlling interest in TAIF in exchange for a 15% stake in the combined PJSC SIBUR Holding company

37%

13%

EBITDA at RUB 74 bln (up 29% qoq) / $1.0 bln (up 32% qoq / up 75% yoy)

CORPORATE

EBITDA and EBITDA margin (%)

Revenue

SIBUR held its Annual General Meeting of Shareholders at which a new Independent Director, Ksenia Sosnina, was elected (Apr’21) SIBUR joined a project to develop a carbon monitoring site that will become part of a system to monitor climatically-active gases in the Tyumen region in Mar’21

Net income adjusted for FX gains / losses, extraordinary and one-off income and expenses Including contractors

42% 29%

4%

154

173

57

74

62

65

4Q20

1Q21

4Q20

1Q21

4Q20

1Q21

EBITDA and EBITDA margin (%)

Revenue

Net Debt / EBITDA in USD

44%

31%

in RUB

42%

2.3x

96%

SOGAZ JSC became a shareholder of SIBUR after the acquisition of 12.5% of the company’s shares from Leonid Mikhelson The Board of Directors approved changes to the Company’s dividend policy and increased the dividend payout ratio from 35% to 50% of the adjusted net profit(1) in Mar’21. The new dividend policy has been applied to 2H20 financial results

Net Operating CF

121

173

37

74

2.2x

1Q20

1Q21

1Q20

1Q21

31 Dec'20

1.6x 1.6x 31 Mar'21

KEY OPERATIONAL RESULTS +34% yoy 1,418 ths tn Petrochemical products sales volumes -33% yoy

Midstream products sales volumes

-2% yoy

1,992 ths tn

Raw NGL fractionation

0,893 ths tn

0.19 LTIF(2) 3


SIBUR AND TAIF TRANSACTION OVERVIEW

ASSET

 TERMS & FINANCING

TIMING & CONDITIONS PRECEDENT

ESTIMATED OPERATIONAL & FINANCIAL IMPACT

       

SIBUR to acquire 50% + 1 share of JSC TAIF, which owns controlling stakes in petrochemical and energy & utility assets

Non-cash transaction whereby SIBUR will issue additional ordinary shares resulting in 15% shareholding of TAIF beneficiaries in SIBUR SIBUR will enter into option agreement to acquire the remaining 50% - 1 of the shares in TAIF group in subsequent years

Completion of the relevant corporate procedures Receipt of necessary regulatory approvals Expected deal closing date: before the end of FY21 Revenue growth and FCF accretion Optimization of feedstock flows, distribution and logistics Investment programme synergies

Improved resilience to market fluctuations Product portfolio diversification 4


COVID-19 RESPONSE REDUCED INFECTION RATE AND ACTIVE VOLUNTARY VACCINATION

₽3.1 bln

0

>5 800

COVID-19 prevention costs since 1Q’20

production shutdowns

employees vaccinated

70%

835

collective immunity rate achieved

recoveries for 644 confirmed cases in 1Q’21

5


TOBOLSK PETROCHEMICAL HUB SALES KEY 1Q21 RESULTS Tobolsk Petrochemical Hub Sales Volumes in 1Q21, ‘000 t

652 kt Tobolsk Hub PE and PP production (up 33% yoy)

247 Russia

79

61% export share vs. 43% export share of our total petrochemical sales volumes

32

Europe

CIS

65 Turkey

159 49 China

25% of Tobolsk Hub PЕ and PP are sold to China

Other 6


HIGH AND STABLE MARGINS DESPITE COVID-19 EBITDA MARGIN, % Sustainable 30+% EBITDA margin throughout various phases of chemical, energy and economic cycles

42%

40%

30%

29% 24% 23% 21% 19% 18% 17% 16%

20%

10%

0% 2016

2017

2018

2019

2020

Source: Bloomberg, Capital IQ, Companies data (1) 1Q 2021 data is a mix of company-reported results and analysts estimates (some companies are yet to report 1Q21 results), Petronas Chemicals data is a full 2021 estimate

1Q21

(1)

7


MACRO ENVIRONMENT Average Oil Price (Brent)(1)

Russian GDP(2)

21% 38% 50.3

1Q20

60.9

1Q20 1.8%

4Q20

1Q21

1Q20

(1) (2) (3) (4)

Source: Source: Source: Source:

4Q20

1Q21

76.2 (3%)

74.3

31 Mar’21 31 Dec’20 31 Mar’20

4Q20

1Q21

$/₽

2.9%

1.3% 2.0% 2.1% CPI

EOP Exchange Rate(4)

77.7 73.9 75.7

1Q20

-2.4%

-1.3%

10.9%

11%

66.4

1Q21

44.2

Average Exchange Rate(4) $/₽

4Q20

CPI & PPI(3) 31 Mar’21 / 31 Dec’20 31 Dec’20 / 30 Sep’20 31 Mar’20 / 31 Dec’19

-0.9% PPI

Tariff Indexation

Description

Effective Date

Indexation Rate

Regulated natural gas price

Aug 2020

3.0%

Railway transportation tariff

Jan 2021

3.7%

85.7 90.7 88.9

€/₽

Bloomberg Russian Federal State Statistics Service and Ministry of Economic Development of the Russian Federation’ forecast for 1Q21 Russian Federal State Statistics Service Bank of Russia

8


MARKET ENVIRONMENT – MIDSTREAM Oil and FX USD/RUB

Brent

100 80

1Q21 vs. 1Q20

11%

60

21%

40 20 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21

0

$/t

Naphtha LPG DAF Brest

LPG CIF ARA Natural gas (RHS)

700 600 500 400 300 200 100 0

$/000 m3 1Q21 vs. 1Q20

100 90 80 70 60 50 40 30

31% 46% 55%

(9%)

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21

$/bbl $/₽

Midstream

Comments

Comments

 The average price of Brent oil in 1Q21 went up to $ 61 / bbl. which is 21% higher than 1Q20, mainly due to the limited supply, resulting from the OPEC+ agreement and weather conditions in the US

 International prices for LPG and naphtha followed oil price and were significantly higher compared to 1Q21

 Gradual recovery in demand followed the vaccination roll-out around the world supported Brent Oil prices  In 1Q21 USD/RUB exchange rate depreciated by 11% to the same reporting period of 2020

 Growth in naphtha and LPG prices was supported by further economic recovery, colder weather boosting Asian and European demand  Tight shipping capacity across the Panama channel and Panama Canal congestion affected supply in Asia, which lead to tighter spreads

Source: IHS, Argus, FAS, Bloomberg

9


MARKET ENVIRONMENT – PETROCHEMICALS $/t 1500

Asia

Polyethylene(3) Spread(1) to Naphtha (O&P)

(2)

Europe

1300

1Q21 vs. $/t 1Q20 1500 73% 1300

1100

1100

900

900

700

47%

Asia

Key PE&I Spreads(1) to Naphtha

(2)

Europe

1Q21 vs. 1Q20

$/t 900

1Q21 vs. 1Q20

89%

70%

700

700

(4%)

500

241% (18%)

500

300

300

300

100

100

100 Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21

500

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21

PET-naphtha in Asia Butadiene-naphtha in Europe MEG-naphtha in Europe

-100

Jan-19 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21

Polypropylene Spread(1) to Naphtha (O&P)

Global picture: Chemical demand experienced great recovery due to significant demand increase as economics are moving out of lockdowns and boosted further by weather-related and planned capacities shutdowns.

O&P Comments

PE&I Comments

 More than 70% of PE and more than 80% of PP capacity in the US was down in mid-February due to the Winter storm Uri which affected global markets

 PET (Asia): capacity additions in China put pressure on spreads partially offset by economic recovery

 Europe: PE spread is up by 89% and PP spread is up by 73% compared to 1Q20 due to problems with supply and demand from FCMG, hygiene and medical sectors; several European capacities were off due to rescheduled from 2020 maintenance shutdowns which lifted the local prices further  Asia: PE spread is up by 70% and PP spread is up by 47% compared to 1Q20 due to economic demand recovery and supply risks

 MEG (EU): 1Q20 spread is up due to higher demand and increase of the feedstock costs in Asia  Elastomers (EU): butadiene spreads are lower in 1Q21 compared to 1Q20 due to the lower demand from the auto industry

 Russia: weaker ruble supported the growth of domestically produced PE & PP. ZapSib production replaced part of the imported volumes Source: IHS (1) The “spread” refers to the difference between product price and naphtha per ton in USD terms, and thus illustratively shows the profitability margin of the petchem product. No conversion rate is applied in the calculation (2) Spot prices (3) Average of HDPE and LDPE

10


1Q 2021 FINANCIAL SUMMARY(1) Average Oil Price

Revenue

3 339

1Q20

3 371

4Q20

4 527

1Q21

Average LPG Price(2) $/t

350

397

Russian Rubles, bln

RUB / bbl

44%

31% 154

1Q21

Petchem index (IPEX)(3) Rebased to 100% in 1Q18 110%

93%

90% 70% 50% 30%

181% 29%

121 37

4Q20

1Q21

1Q20

74

57

62

4%

65

23 4Q20

1Q21

1Q20

4Q20

1Q21

Net OCF(4)

EBITDA

28% USD Equivalents, mln (illustrative)

4Q20

42%

96%

173

Revenue 1Q20

37%

13%

1Q20

512

Net OCF(4)

EBITDA

75%

16%

151%

2 332

1 818

2 016

32% 564

1Q20

4Q20

1Q21

1Q20

750

7% 989 814

871

4Q20

1Q21

347

4Q20

1Q21

1Q20

World

(1) (2) (3) (4)

Values in USD estimated based on average $/₽ rate of 74.3, 76.2, 66.4 in 1Q21, 4Q20 and 1Q20, respectively LPG CIF ARA. Source: Argus ICIS composite index, comprising 12 chemical products Net Operating Cash Flow, including WC changes and income tax paid

11


EBITDA DYNAMICS EBITDA bridge RUB’bln

1Q21 EBITDA up by 29% driven by: +29% 74

(3)

3

higher PP and PE benchmark prices 35% and 32% respectively

17

57

higher PE&I segment's products benchmark prices (MEG +34%, PET +35%) 4Q20

Margin

Volume

Other

1Q21

higher PP and PE sales volumes

EBITDA by year RUB’bln

EBITDA margin

31%

32%

36%

37%

42%

ZapSib reached its full nameplate capacity

+29% +19%

+32% -3% 48 37

36

1Q20

2Q20

3Q20

74

one-off operating expenses

57

4Q20

1Q21 12


1Q21 ADJUSTED EBITDA DYNAMICS ADJUSTED EBITDA DYNAMICS(1) %

%

EBITDA margin

RUB 39.8 bln

1Q20 EBITDA 4 Q20

Consolidated EBITDA RUB 37.4bln

(RUB bln)

Mid S

Una llo cate d

Adjust men ts

RUB 78.5 bln(2) EBITDA 1 Q21

O&P

1Q20 1Q21

PE&I

1Q20 1Q21

5.2

Midstream

1Q20 1Q21

(4.2)

Unallocated

1Q20 1Q21

2.6

Adjustments(1)

1Q20 1Q21

9.5

PE&I

Consolidated EBITDA RUB 73.5 bln

EBITDA margin

EBITDA by Segment (RUB bln)

31% 25.6

O&P

97%

SEGMENTS

11.0 36.5

27% 43% 7% 26%

2.1 11.7 23.5 28.7

38% 39%

0,8 (3.3) 2.4 5.0

42%

1Q21 (1) Adjusted for SIBUR’s portion of EBITDA of JVs and associates less NCI share of subsidiaries’ EBITDA (2) Sum of EBITDA by segment might not add up precisely to the total figure due to rounding

13


CASH FLOWS HIGHLIGHTS FY 2017 Cash FlowReconciliation Reconciliation 1Q20 Cash Flow

FY 2017 Cash FlowReconciliation Reconciliation 1Q21 Cash Flow

Net CF: 28.7

RUB bln

Net CF: 26.2

RUB bln (1.5)

(8.7) (25.3)

74.9

19.0

(28.6) (2.9)

(7.2) 30.6

(25.7)

17.4

Cash as of 31.12.2019

OCF

(2.9)

(0.4)

WC change

Income tax paid

CapEX

(1)

(0.3)

46.2

53.1

26.9

34.7

Net proceeds from debt

(0.8)

Interest Paid

Other

Cash as of 31.03.2020

Cash as of 31.12.2020

OCF

WC change

Income tax paid

(1)

CapEX Proceeds Net Interest from repayment Paid disposal of of debt subsidiaries

Other Cash as of 31.03.2021

Key Factors Affecting Cash Flows

 

The increase in OCF was in line with our EBITDA growth Tax payments in 1Q21 were in line with high operating income generated by the company. Higher income tax paid resulted from lower tax base in 1Q20 driven by (i) higher pre-tax profit on the back of substantial financial loss (ii) utilization of prepaid taxes in 1Q20

Net repayment of debt was mainly driven by early settlement of ZapSib related debt and repayment of Russian ruble bonds

Proceeds from disposals of subsidiaries relates to the sale of 40% stake in the Amur GCC project to Sinopec in Dec’20

(1) Includes purchase of property, plant and equipment, intangible assets and other non-current assets

14


DEBT PROFILE Key Figures

Overview

31 March 2021

31 December 2020

Change, %

406.1

430.1

(6%)

Conventional debt

162.6

162.4

0%

ZapSib related debt

227.4

250.9

(9%)

Lease liabilities

16.2

16.9

(4%)

RUB bln, except as stated

Total debt

Cash & cash equivalents

53.1

26.9

97%

Net debt

353.0

403.2

(13%)

Net debt (in $ bln)

4.7

5.5

(15%)

WA loan tenor (years)

5.6

5.6

WA Conventional debt

3.2

3.2

WA ZapSib related debt

7.3

7.2

346.1

361.3

(4%)

44.6

67.0

(33%)

Available credit lines, incl. Committed

 

Total debt decreased due to: o early repayment of ZapSibNeftekhim related debt o appreciation of the Russian ruble against the euro Net debt decreased by 12.5% following the decrease in total debt and cash accumulation Average tenor remained flat at 5.6 years Net leverage in ruble terms decreased significantly to 1.6x (as of 31 Mar’21) compared to 2.3x (as of 31 Dec’20), while the net leverage in USD terms decreased to 1.6x from 2.2x: o conventional net leverage decreased to 0.6x from 0.9x o ZapSib net leverage decreased to 1.1x from 1.4x

Loan portfolio structure as of 31 Mar’21

Leverage Ratios 31 March 2021

31 December 2020 $/€/₽

Debt / EBITDA(1)

1.9x

2.4x

Debt / EBITDA(2) (in $)

1.8x

2.3x

Long-term/Short-term

Net debt / EBITDA

1.6x

2.3x

Fixed/Floating

0.6x

0.9x

Unsecured

1.1x 1.6x

1.4x 2.2x

Conventional net debt (incl. lease liabilities) ZapSib related net debt Net debt / EBITDA (in $) (1) (2)

LTM EBITDA totaled RUB 215.3 and 179.2 bln as of 31 Mar’21 and 31 Dec’20 respectively LTM EBITDA totaled USD 2.9 and 2.5 bln as of 31 Mar’21 and 31 Dec’20 respectively

65%

23% 96%

37%

12% 4%

63% 100%

15


LIQUIDITY AND DEBT MATURITY PROFILE(1) As of 31 March 2021, ₽ bln

uncommitted credit lines

302

132

committed credit lines

64

45

63

51 26

cash & cash equiv.

53

10

Liquidity

2021

2022 Loans

2023 Eurobonds

2024

2025 RUB bonds

11

11

11

10

2026

2027

2028

2029

ECA

After 2029

NWF

(1) Items denominated in $ and € are converted into ₽ at $/₽ and €/₽ FX rates as of 31 March 2021

16


APPENDIX

17


O&P (OLEFINS & POLYOLEFINS) SEGMENT HIGHLIGHTS Segment Financial Performance RUB bln

43%

27%

External Revenue EBITDA EBITDA margin, %

74 37

31

Revenue: +139% EBITDA: +233%

11 1Q20

1Q21

$165 mln

Key Factors

$491 mln

EBITDA ($): +197%

Segment revenue increased on higher PP and PE sales volumes due to o higher ZapSibNeftekhim production utilization rate o higher demand following the lifting of COVID-19 restrictions An additional factor of revenue growth was positive pricing dynamics across all product groups due to higher international benchmarks

Segment EBITDA increased mainly due to the increasing share of ZapSibNeftekhim sales volumes of special PE and PP grades supported by wider product margins

Revenue(1) Structure RUB bln

Ethylene Other BOPP-film PP

7 31

Quarterly EBITDA dynamics(2)

34%

38%

35%

39%

37%

44%

42%

25

28

43%

27% 37

PE

49

%

40

(1) Represents external revenue (2) Sum of EBITDA by quarters might not add up precisely to the total figure due to rounding

20

10

12

12

14

11

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20 3Q20

4Q20

1Q21 18


PE&I (PLASTICS, ELASTOMERS & INTERMEDIATES) SEGMENT HIGHLIGHTS Segment Financial Performance RUB bln

26%

External Revenue EBITDA EBITDA margin, %

42

7% 31

Key Factors

 

12 2 1Q20

$32 mln

Revenue: 37% EBITDA: 447%

1Q21

$157 mln

External revenue increased mainly due to favourable pricing dynamics across all product groups and global demand recovery compared to the first quarter of 2020 This factor was somewhat offset by lower MTBE sales volumes due to lower production at our production site in Tobolsk EBITDA increased fivefold due to higher product margins due to the positive dynamics for international benchmarks

EBITDA ($): 388%

Revenue(1) Structure MTBE and Other sales fuel additives Intermediates 51 24 and other chemicals 30 Elastomers

Plastics & Organic Synthesis

Quarterly EBITDA dynamics(2) RUB bln

26% 22% 14%

12%

16%

14% 9%

% 6 40

(1) Represents external revenue (2) Sum of EBITDA by quarters might not add up precisely to the total figure due to rounding

1Q19

5

5

2Q19

3Q19

12% 7%

12

8 3

2

3

5

4Q19

1Q20

2Q20

3Q20

4Q20

1Q21 19


MIDSTREAM SEGMENT HIGHLIGHTS Segment Financial Performance

Key Factors

RUB bln External Revenue EBITDA EBITDA margin, %

39%

38% 46

44

29

23

Revenue: (3%) EBITDA: 22%

1Q20

1Q21

$354 mln

$386 mln

EBITDA ($): 9%

 

Segment’s revenue decreased mainly due to: lower natural gas and NGLs production volumes due to reduced APG supplies following the OPEC+ agreement o lower LPG sales volumes as a result of higher LPG internal use at ZapSibNeftekhim o lack of LPG volumes purchased under trading arrangements These factors were almost fully compensated by higher selling prices for LPG and naphtha following the positive dynamics for international benchmarks EBITDA increased primarily due to widening spreads between purchased hydrocarbon feedstock and NGLs selling prices

o

Quarterly EBITDA dynamics(2)

Revenue(1) Structure RUB bln

Naphtha

Other sales

42%

42% 35%

4

19

37%

38%

34%

35%

18

22

3Q20

4Q20

39%

23% Natural gas

% 26

51

29

28

LPG

24

23 8

1Q19 (1) Represents external revenue (2) Sum of EBITDA by quarters might not add up precisely to the total figure due to rounding

20

2Q19

3Q19

4Q19

1Q20

2Q20

29

1Q21 20


OPERATING EXPENSES STRUCTURE AND DYNAMICS OpEx

Key Factors

RUB bln 82%

67%

 Feedstock & materials increased as a result of: o higher NGLs purchase costs caused by higher netbacks

17%

 116

99 1Q20 x%

1Q21 - % of revenue

Feedstock & Materials 26%

26%

for LPG and naphtha and higher volumes of raw NGL under supply contracts with NOVATEK o 3.0% indexation of regulated natural gas prices Transportation & logistics costs decreased slightly o lower sales volumes of LPG (used internally at ZapSib) o lack of LPG volumes purchased under trading arrangements o partially compensated by higher transportation volumes of polyolefins produced at ZapSibNeftekhim due to higher utilisation rate o 3.7% indexation in tariffs

Transport & Logistics 16%

10%

Depreciation 13%

9%

Staff Costs 11%

9%

The increase in staff costs was mainly related to headcount growth at NIPIGAS and the upward revision of staff bonuses for improved efficiency and financial results demonstrated in the second half of 2020 despite the ongoing pandemic Lower energy and utilities expenses o c.8% decrease in expenses to electricity o Increase in expenses to fuel (primarily natural gas) Other expenses increase was mainly driven by oneoff operating expenses

Energy & Utilities 10%

7%

Other 7%

6%

44% (11%)

3%

23%

(2%)

22%

45.2 31.3 1Q20

1Q21

18.9

16.9

15.1

15.6

13.0

15.9

1Q20

1Q21

1Q20

1Q21

1Q20

1Q21

11.8

11.6

8.4

10.3

1Q20

1Q21

1Q20

1Q21 21


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