Delek Group Ltd Investors Conference. Asi Bartfeld, CEO. DELEK GROUP LTD > Expanding, Empowering

Transcription

1 Delek Group Ltd Investors Conference Asi Bartfeld, CEO 1

2 Goals Set for Continued focus on Upstream Deleveraging of the Group Start of production from Tamar Further appraisal of Leviathan 02 2

3 Focus, Focus, Focus Oil and Gas Exploration and Production Finance Automotive Energy and Infrastructure 03 3

4 Disposals from Beginning of 2013 Total: NIS 2.4billion 32% 55% 53% 24% 52% 25% 04 4

5 Asset Disposal Plans Roadchef Delek Europe The Phoenix Republic 05 5

6 Deleveraging of the Group Total gross liabilities of the Company and subsidiaries (NIS billions) Total 9.8 Debentures Banks Other Total Net debt (gross debt less cash and short-term investments) decreased from NIS 8.1 billion to NIS 7.2 billion 2 Other' includes mainly a loan from an investee, dividends, taxes and interest payable 06 6

7 Dividends Dividends for the past five years (NIS millions) 1, In the past five years, a total of NIS 2.85 was paid 07 7

8 4/1/2013 4/22/2013 5/13/2013 6/3/2013 6/24/2013 7/15/2013 8/5/2013 8/26/2013 9/16/ /7/ /28/ /18/ /9/ /30/2013 mcf/d Start of Production from Tamar in Budget and Time Tamar production from April 2013 Revenue by Customer (100%, Tamar and Yam Tethys) 100% Others 1,200,000 1,000,000 Maximum annual output/ BCM10~ 90% 80% 20% Bazan IEC 800,000 70% 14% 600, , , % 50% 40% 30% 66% 20% 10% 0 Total production :Tamar 5.08 BCM, Yam Tethys 1.43 BC (including SWAP), aggregate 6.5 BCM 08 8

9 Leviathan - Regulatory Decisions Petroleum Profits Tax Bill (Amendment) Government decision regarding export policy Granting of lease deeds for Leviathan Arrangement with the Antitrust Commissioner regarding Leviathan To determine how to calculate petroleum profits tax (transfer prices) Final government decision - to keep 540MCB for 29 years for the local market, i.e. less than 40% remains for export with an option for expansion by an alternative arrangement; Further discoveries will be added to the quantity of natural gas for export I/14 Leviathan South lease (included in the Rachel license area) and I/15 Leviathan North lease (included in the Amit license area) Undertaking to sell Tanin and Karish reservoirs 09 9

10 Modification of Operations of the Private Companies 10

11 IDE - Desalination 2013 Financial data Completion of significant projects; Sorek - the world's largest and most advanced desalination plant of its kind (624,000/m 3 /day) Tianjin the largest desalination plant in China (200,000/m 3 ) USD millions Revenue Operating profit Net profit Vasilikos ( Cyprus) potable and agricultural water (60,000/m 3 /day) Carlsbad (California) the largest desalination plant in the western hemisphere (204,000 m 3 /day) An Eye to the Future Expansion of the industrial water treatment segment In 2014, an agreement was signed with an oil and gas company in Alberta, Canada 11 11

12 IPP 2013 Financial data In April 2013, with the start of flow from the Tamar reservoir, the supply of gas to the IPP Delek Ashkelon power station was renewed. NIS millions Revenue In September 2013, two material malfunctions were discovered,requiring a two-month partial shut down of the power station An Eye to the Future IPP Delek Sorek MW power station Expected to start supplying electricity in 2015 Sorek is in the final funding finalization stages Sorek will purchase 3.3 BCM natural gas over 15 years 12 12

13 Republic 2013 Financial data Continued reduction of exploration in areas prone to severe weather damage USD millions The best underwriting results since 2017 Further substantial decline in operating expenses Revenue Expenses Profit (loss) before tax ) 128( Net profit 19 9 ) 103( An Eye to the Future Continued operational streamlining Continued reduction of the risk profile and exposure to weather damage 13 13

14 Roadchef 2013 Financial data The EBITDA amounted to GBP 30.1 million GBP millions The development plan for 19 of the 28 existing stations was completed Purchase of a new site (Stutton Scotney, A34) Revenue Operating profit EBITDA Net loss (0.2) ) 3( ) 3.9( An Eye to the Future Full integration of an ERP system at the Company's sites to improve its control efficiency and costs Continued development of existing sites 14 14

15 Delek Europe 2013 Financial data Fuel consumption decreased in 2013 mainly due to the economic slowdown (3% for gasoline) Inventory losses impact of the price on impairment of the fuel inventory amounted to a loss of EUR 9.6million EUR millions Revenue Operating profit EBITDA , , , Net profit An Eye to the Future Convenience stores continue to be the Company s future growth engine Strengthening and expanding the business sales system (refueling cards, B-2-B) Increasing customer loyalty, frequency of visits and average purchase per visitor 15 15

16 Q4 and 2013 Reports 16

17 Contribution to Net Income from Key Operations NIS Q4 million 2012 Q Q Q Oil and gas exploration and production Fuel operations in Europe (32) (9) Fuel operations in Israel 9 4 (4) Delek Motorways Services UK (2) (16) (5) (17) Insurance and finance operations in Israel Discontinued operations abroad Fuel operations in the US Automotive operations Capital and other gains (128) (555) (11) (97) Profit attributable to Company shareholders

18 Capital and Other Gain in 2013 NIS millions 2013 Impairment of The Phoenix (165) Cancellation of Delek Automotive impairment 200 Effect of Delek USA 555 Other - mainly financing expenses and taxes of subsidiaries (619) Effect of the revised tax rate (99) Total (128) 18 18

19 Contribution to Operating Profit of Key Operations NIS millions Q Q Oil and gas production and exploration Fuel operations in Europe (30) 19 Fuel operations in Israel Insurance and finance operations in Israel 1, Insurance operations outside of Israel Other segments including adjustments (206) (76) (128) (73) Operating profit 1,746 1,

20 Net Debt Balance at End of 2013 Liabilities NIS millions Debentures (6,928) Bank loans (883) Other (407) Total liabilities (8,218) Assets Cash 902 Financial investments 70 Loans to investees 842 Dormant shares 423 Total Assets 2,237 Net financial debt -subsidiaries (5,981) Netfinancial debt - subsidiaries 20 20

21 An Eye to the Future

22 2014 Goals Leviathan development and decisions regarding export options Refinancing for Tamar and initial capital raising for Leviathan Splitting 22 22

23 New Post-Split Company Structure New Company 6.14% 8.45% 4.441% Yam Tethys Joint Venture 86.7% Delek Energy TASE:DEOL 51.76% Cohen Development TASE:CDEV Right to receive royalties Delek Drilling Avner 62.64% 48.4% TASE:DEDR.L TASE:AVNR.L 23 23

24 Delek Group Post-Split Structure Delek Group Ltd. 100% 100% Roadchef 80% Delek Europe Delek Petroleum 20% 100% Delek Israel 25% Delek US 24% Delek Automotive TASE:DLEA 52% The Phoenix Holdings TASE:PHOE 100% Republic 47% Barak Capital 100% Delek Infrastructure 90% Excellence TASE:EXCE 100% Gadot 50% IDE 100% IPP 24 24

25 Questions 25

26 Declaration This presentation does not constitute an offer to purchase securities of the Company or an invitation to receive such offers, and is intended for informational purposes only as part of explaining the Company. This presentation is a summary and for convenience only and does not replace reviewing of the Company's publically published reports, which contain comprehensive information regarding the Company, prior to making decisions regarding investment in the Company's securities. This presentation contains forward-looking information as defined in the Securities Law, Such information includes, inter alia, projections, objectives, assumptions and estimates, including information presented by way of illustrations and/or graphs and/or tables that relate to future events and/or matters he realization of which is uncertain and not under the control of the Company. Forward-looking information is not a proven fact and is, by its nature, subject to significant risk of non realization. Such information is uncertain, not possible to accurately estimate in advance, and its realization or non-realization is affected, inter alia, by the risk factors characteristic of the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations, which cannot be estimated in advance and are not within the control of the Company. In view of the foregoing, readers of this presentation are hereby cautioned that the Company's actual future results and achievements may differ significantly from those presented in the forward-looking information contained in this presentation. Furthermore, these forward-looking projections and estimates are based on data and information known to the Company at the time of drafting of the presentation and the Company is not obliged to update and/or revise such projection and/or estimate to reflect events and/or circumstances applicable after the drafting of this presentation