LOTOS CVC Fund Invitation to consultations

Transcription

1 LOTOS CVC Fund

2 We would like to invite you to a consultation process with Grupa LOTOS S.A. regarding (i) the concept of LOTOS CVC Fund ( the Fund ) and (ii) selection criteria in a tender* to nominate the Investment Team for the Fund o Grupa LOTOS S.A. is a vertically integrated oil producer, refiner and fuel stations operator with c.a. 5 bneur revenue and footprint in Poland, Norway and Lithuania o One of our strategic cornerstones is innovation and we believe that to fully capture its potential we need to seek for business opportunities both internally and externally o We aim at launching an independent VC Fund to connect with the market and tap into external innovative projects that can further develop our business and provide an attractive return from an investment o Our fund will be established with the support of the Polish Development Fund (,PDF, BRIge VC program) o We aspire to structure a fund with capitalization of mpln (c.a meur) o LOTOS CVC Fund key phases and the timetable: o PHASE 1 Market consultations November - December 2017 o PHASE 2 Selection of an Investment Team January March 2018 o PHASE 3 Submission of the application to PDF program March - April 2018 * The contractor selection process, conducted in accordance to the internal procedure of Grupa LOTOS S.A. 2

3 Table of Contents 1. About Grupa LOTOS S.A. 2. LOTOS CVC Fund key motivations 3. The Polish Development Fund 4. The Investment Team selection process 3

4 About Grupa LOTOS S.A. 4

5 About Grupa LOTOS S.A. o Grupa LOTOS is a vertically integrated oil&gas company based in Gdańsk, Poland. Our activity has strategic importance for national and European energy security and for the Polish economy o Grupa LOTOS manages the state-of-the-art refinery in Gdańsk, is engaged in crude oil exploration and production from Norwegian Continental Shelf, Baltic Sea and onshore hydrocarbon deposits in Lithuania and has significant footprint in fuel retail sales sector with a network of almost 500 fuel stations (3rd largest network in Poland) o We are the 5th largest company in Poland with revenue of c.a. 5 bneur and since June 2005 we are listed on the Warsaw Stock Exchange o LOTOS refinery is one of the most technologically advanced refineries in Europe o Grupa LOTOS produces and markets products such as unleaded gasoline, diesel oil, gas oil and aviation fuel. Grupa LOTOS supplies nearly one-third of the Polish fuel market o LOTOS is also a leading producer of bitumens and lubricants for cars, aircraft, trains, ships, and even military vehicles. LOTOS exports own products to 75 countries around the world o For more information about us read our strategy (attached) or visit us at Invitation Consultation to consultations material 5

6 Grupa LOTOS S.A. key highlights Business segments UPSTREAM REFINING SALES AND DISTRIBUTION o The Grupa LOTOS S.A. produces hydrocarbons from offshore and onshore fields o Three-fourths of our volumes come from fields in Norway, while the balance is produced in the Baltic Sea and in Lithuania o 2P (proved and probable) reserves at 72.7m boe o Daily production in 2016 was approximately 26,000 boe o The 2nd largest fuel producer in Poland processing 10.4m t of crude oil (annually) o The refinery in Gdańsk is one of the youngest and most advanced refineries in Europe in terms of technology and environmental protection o EFRA project under development new installations launched in Q will produce an additional 900 thousand tonnes of high quality fuels o 30% share in the domestic fuel market o 10% share in the domestic retail fuel market o Poland s 3rd largest network of 487 petrol stations o Wholesale of fuels and other petroleum product (bitumens and oils) 6

7 LOTOS CVC Fund key motivations 7

8 Why we want to establish a VC fund? We recognise that innovative projects bolster our competitiveness and hence we have made innovation one of the cornerstones of LOTOS strategy. We believe that professionally managed Corporate Venture Capital fund combined with LOTOS R&D initiatives will allow us to truly capture the full potetnial from innovations both from internal and external sources. Our approach to innovation o Increasing innovation of our organization is one of the cornerstones of our strategy o We have a strong R&D and we are working to fully develop potential of bottom-up internal innovative initiatives o We believe that a VC fund can be an efficient vehicle to connect with the market and tap into innovative projects that can evolve in our future business Our ground rules for a VC fund o We plan to establish a cooperation with a professional Investment Team and together create an independent VC Fund o We want to launch a VC Fund in cooperation with Polish Development Fund o We believe that optimal size of a VC fund is 160 to 220 mpln (40-50 meur) Key objectives for our VC fund o Find innovative start-ups that are scalable, can be developed into a full grown businesses and will generate positive return from investment o Find companies that will allow Grupa LOTOS S.A. to enter new markets / new business opportunities 8

9 The Polish Development Fund 9

10 The Polish Development Fund BRIge VC program The Polish Development Fund support for Venture Capital funds The Polish Development Fund (PDF) is a group of financial and advisory institutions supporting companies, local governments and individuals and investing in sustainable social and economic development of Poland. The PDF has two programs (in the Fund of Funds formula) and plans to set up 5 to 9 funds in each of them. Grupa LOTOS S.A. would like to apply to PFR NCBR CVC FIZ fund. BRIge VC (PFR NCBR CVC FIZ) Available funds PDF participation in a single fund Capital entry in one transaction o 100 meur (about 440 mpln) to invest into 5 to 9 funds o Up to 80mPLN (c.a. 20mEUR) (share of PFR / NCBR up to 50%) o 5 35 mpln (c.a. 1-5 meur) All specific information and rules for the submission and selection of investment proposals for the establishment of corporate venture capital funds under the BRIdge VC Program financed through the PFR NCBR CVC FIZ and Private Investors funds are posted on the Polish Development Fund website: Fund profile o Corporate Venture Capital fund o Independent management / Decisionmaking autonomy EN: PL: o Flexible legal forms Investment horizon o Into sub-funds : o Into portfolio companies :

11 The Investment Team selection process 11

12 PRELIMINARY AND INDICATIVE TIMELINES MAY CHANGE We will use staged approach for selecting an Investment Team Current phase MARKET CONSULTATIONS Consulting with the market our concept of VC fund and the Investment Team selection criteria REQUEST FOR PROPOSAL Tender for the Investment Team selection VC FUND APPLICATION Submission of the application to the BRIge VC program (PFR NCBR CVC FIZ) November December 2017 January March 2018 March April 2018 Phase 1 Phase 2 Phase 3 Consultations with interested parties Verification of our concept of the LOTOS CVC Fund during meetings and conversations Reaching out to the VC community and testing the appetite for cooperation Consulation of potential Investment Team selection criteria Selection of a reputable Investment Team that will ensure necessary know-how to operate a Venture Capital fund Multistage process with interviews / pitch speeches and providing proof of a track record Selection of the Investment Team Joint development (with the Investment Team) of Fund s: Investment strategy Operating model Payment structure Preparation of the application to the BRIge VC program Submission of the application to the Polish Development Fund 12

13 First we want to know you and discuss our vision of LOTOS CVC Fund Current phase Phase 1 Phase 2 Phase 3 Phase 1. Market consultations Expectations Commitments Information you will receive Means of contact o Consult with the potential Investment Teams the preliminary scope of the process and tender specification o Gain in-depth understanding of the VC market in Poland and the EU o Parties interested in consultations are obliged to maintain confidentiality o Grupa LOTOS S.A. will provide detailed information and materials after signing a Confidentiality Agreement o The concept of the LOTOS CVC Fund o Strategic Investment Sectors for LOTOS CVC Fund o Preliminary Investment Team selection criteria o Direct meetings / workshops o Video- and teleconferences o s 13

14 Grupa LOTOS S.A.