Interim Report 1 April 215 3 June 215 Eesti Energia Aulepa Wind Park in Noarootsi, Estonia
Eesti Energia Q2 Interim Report, 1 April 3 June 215 2 Contents Summary of Q2 Results... 3 Summary of Eesti Energia... 5 Key Figures and Ratios... 6 Operating Environment... 7 Financial Results... 1 Revenues and... 1 Electricity... 11 Distribution... 14 Shale Oil... 16 Other Products and Services... 18 Cash Flows... 19 Investment... 2 Financing... 23 Outlook for FY 215... 25 Condensed Consolidated Interim Income Statement and Statement of Comprehensive Income... 26 Condensed Consolidated Interim Statement of Financial Position... 27 Condensed Consolidated Interim Statement of Cash Flows... 28 Condensed Consolidated Interim Statement of Changes in Equity... 29 Notes to the Condensed Interim Financial Statements... 3 1. Accounting Policies... 3 2. Financial Risk Management... 31 3. Segment Reporting... 34 4. Greenhouse Gas Allowances... 37 5. Seasonality of Operating Profit... 37 6. Property, Plant and Equipment... 37 7. Derivative Financial Instruments... 38 8. Share Capital and Dividends... 38 9. Earnings per Share... 38 1. Nominal Value and Amortised Cost of Borrowings... 39 11. Cash Generated From Operations... 4 12. Provisions... 41 13. Assets and Liabilities of Disposal Group Classified as Held for Sale... 41 14. Acquisition of Additional Share Capital of Subsidiary... 42 15. Related Party Transactions... 42 16. Events after the Balance Sheet Date... 42 Glossary... 43
Eesti Energia Q2 Interim Report, 1 April 3 June 215 3 Summary of Q2 Results Dear reader In Q2 215, energy markets remained depressed and thus our sales revenues were 12% smaller than a year ago. However, despite a complicated market situation, effective cost management and successful hedging transactions enabled us to improve our earnings before interest, taxes, depreciation and amortisation () by 2% year over year. improved for all the core products. Our net profit for the period was almost EUR 7 million. Eesti Energia s revenue decline was mainly due to the downtrend in the prices on the Nord Pool Spot power exchange which also reduced our electricity sales volume. The power exchange price has fallen record-low: in June the average price of electricity on the power exchange was 27.3 /MWh, the lowest monthly price level since the launch of the Estonian price area in 21. In Q2, the electricity price in Estonia dropped by 14% year over year to 3 /MWh. For comparison, in 212 when the Estonian electricity market last had regulated prices, the average electricity price was 3.3 /MWh. Even though the world market prices of oil fell by around 3% year over year, our oil business delivered strong performance. We succeeded in increasing our shale oil sales by 5%. In the three months, we produced over 73 thousand tonnes of shale oil, 4% of which came from our new Enefit28 oil plant. Our capital expenditure for Q2 215 was EUR 85 million, 51% up year-on-year due to the construction of the Auvere power plant where the last works are being completed. The 3 MW Auvere power plant supplied its first power to the grid in May this year. Altogether, we have invested EUR 565 million in the construction of the new power plant. Sizeable investment in distribution network amounted to EUR 23 million in Q2. The Group s subsidiary Elektrilevi used the funds to build 96 new substations and 449 km of weather-proof power cables and to begin the reconstruction of the Kuusalu, Mustamäe and Imavere regional substations. The remote reading project has reached the stage where 67% of all power meters have remote reading capability. In Q2, we made a substantial investment in modernising our mining technology. At the beginning of 216, we are going to implement longwall mining at our Estonia mine, which will improve our mining efficiency. Longwall mining will help us maintain the competitiveness of our primary energy because under the longwall technology the product cost of oil shale is lower than under the currently used roomand-pillar technology. By the end of Q2, our investments in the implementation of the new mining technology amounted to EUR 1 million. The total budget of the project is EUR 21 million. During the period, the rating agency Standard and Poor s lowered Eesti Energia s credit rating by one notch to BBB while the outlook remained stable. The main reason for the downgrade is the downturn in the market prices of electricity and liquid fuels. The rating agency also highlighted the company s higher financial risk in a situation where an extensive investment programme has increased its level of debt. Compared with the previous interim report, the outlook for our 215 sales revenues has changed. We now forecast a decline relative to 214. The forecast for sales revenues has been downgraded in connection with the situation in the energy markets which is likely to impact our performance.
Eesti Energia Q2 Interim Report, 1 April 3 June 215 4 On the whole, the market is challenging for energy companies. The prices are attractively low for the consumer but energy companies have to improve their efficiency, be flexible and make tough decisions. Eesti Energia has been able to maintain its profitability thanks to earlier hedging transactions and clear cost management. However, looking ahead we have to admit that if the energy market slump continues to persist it may soon start undermining also our profitability. Hando Sutter CEO and Chairman of the Management Board
Eesti Energia Q2 Interim Report, 1 April 3 June 215 5 Summary of Eesti Energia Eesti Energia is an international energy company that operates in the unified electricity market of the Baltic and Nordic countries. Its sole shareholder is the Republic of Estonia. Eesti Energia offers energy solutions ranging from electricity, heat and fuel production to sales, customer service and ancillary energy services. Eesti Energia sells electricity to the Baltic retail customers and the wholesale market and Group entity Elektrilevi distributes electricity to customers in Estonia. Outside Estonia, the Group operates under the Enefit brand. With its approximately 6,5 employees, Eesti Energia is one of the largest employers in Estonia.
Eesti Energia Q2 Interim Report, 1 April 3 June 215 6 Key Figures and Ratios Q2 215 Q2 214 Change 6M 215 6M 214 Change Total electricity sales, of which GWh 1,76 2,251-24.2% 3,894 4,478-13.% wholesale sales GWh 336 866-61.2% 968 1,424-32.% retail sales GWh 1,37 1,385-1.1% 2,926 3,54-4.2% Electricity distributed GWh 1,45 1,415 +2.4% 3,239 3,2 +1.2% Shale oil sales th t 67 45 +5.4% 137 79 +72.6% Oil shale sales th t 223-1.% 1 436-99.7% Heat sales GWh 173 17 +2.1% 634 629 +.7% Distribution grid losses % 5.2 5.2 +.pp 5.3 5.9 -.6pp Average number of employees No. 6,46 6,913-6.5% 6,53 6,924-6.1% Sales revenues m 181. 24.6-11.5% 4.8 43.9-7.% m 69. 67.7 +1.9% 156.8 151.1 +3.8% Operating profit m 33.4 35.6-6.% 86.2 87.4-1.4% Net profit m 6.8 6.2 +1.% 61.5 57.3 +7.5% Investments m 85.3 56.6 +5.8% 137.7 13.4 +5.6% Cash flow from operating activities m 63. 75.5-16.5% 225.7 131.8 +71.3% FFO m 63.9 52.6 +21.5% 147.2 122.5 +2.1% Non-current assets m 2,587.3 2,427.1 +6.6% Equity m 1,562.4 1,467.5 +6.5% Net debt m 735.1 723.6 +1.6% Net debt / times 2.31 2.29 +1.% FFO / net debt times.31.33-5.% FFO / interest cover times 6.15 6.92-11.% / interest cover times 8.59 9.26-7.3% Leverage % 32. 33. -1.pp ROIC % 8. 8.6 -.7pp margin % 38.1 33.1 +5.pp 39.1 35.1 +4.1pp Operating profit margin % 18.5 17.4 +1.1pp 21.5 2.3 +1.2pp Definitions of ratios and terms are explained in the Glossary section of the report, page 43
Eesti Energia Q2 Interim Report, 1 April 3 June 215 7 Operating Environment Global Economy In Q2 215, the prices of energy carriers were lower than a year earlier. Oil prices rebounded slightly during the quarter, remaining affected by global oversupply. Prices on the Nord Pool Spot power exchange declined year over year due to the abundance of hydro and wind power output in the Nordic countries. According to the International Monetary Fund (IMF), the pickup of the global economy is gradual but uneven. Relative to the April forecast, the IMF made a downward revision to its global growth outlook released at the beginning of July. Global growth is projected at 3.3% for 215 (-.1 percentage points compared with 214), the projection for advanced economies being 2.1% (+.3 percentage points) and the one for emerging markets and developing economies 4.2% (-.4 percentage points). Compared with the April outlook, the 215 growth forecast for the United States was lowered by.6 percentage points to 2.5% on account of one-off factors in Q1 such as a harsh winter and strong downsizing of capital expenditure in the oil sector. The euro area growth forecast for 215 remained at 1.5%. Liquid Fuels Prices In Q2 215, the average price of Brent crude oil was 55.2 /bbl (-31.3% compared with a year ago). During April, the price of Brent crude rallied from 51.5 /bbl to over 58 /bbl. In June, the price of Brent crude resumed a downward trend, dropping to 52.6 /bbl by the end of the quarter. In Q2, the euro strengthened against the US dollar from 1.8 US dollars per euro at the beginning of the period to 1.11 US dollars per euro at the end of June. Thus, in US dollars the Q2 movement of Brent crude price was less volatile. Liquid Fuels Prices Average price Q2 215 Q2 214 Change Brent crude oil /bbl 55.2 8.4-31.3% Fuel oil (1% sulphur content) Fuel oil 1% crack spread Euro exchange rate Prices of Liquid Fuels /bbl 1 86 72 58 44 /t 298. 457.1-34.8% /bbl -1.6-7.8 +36.7% EUR/USD 1.17 1.3717-19.3% Until the middle of Q2, the price of Brent crude oil was driven up by the sentiment that the oversupply of oil could be diminishing. The markets responded to the news that the number of US oil rigs was declining and consequently oil inventories were shrinking. Moreover, geopolitical tensions persisting in the Middle East fuelled the fear that oil supplies from the region could be slowed down. The weakening of the US dollar against the euro boosted demand for Brent crude, making it more affordable for countries using the euro (the price of Brent crude oil is quoted in US dollars). /t 635 546 457 368 279 3 191 213 214 215 Brent crude ( /bbl) Fuel oil 1% ( /t) Fuel Oil Crack Spread /bbl -3-6 -9-12 -15 213 214 215 Fuel oil 1% vs Brent crack spread Source: Thomson Reuters In June, the price of Brent crude oil resumed a downward trend owing to tensions in the financial markets triggered by the Greek debt crisis and the
Eesti Energia Q2 Interim Report, 1 April 3 June 215 8 cooling of the Chinese economy. In a situation where oil supplies remain high, the search for a new market equilibrium that began in 214 has not yet ended. In Q2 215, the average price of fuel oil (1% sulphur content) was 298. /t (-34.8% from a year ago). The crack spread which measures the difference between the prices of Brent crude oil and the fuel oil extracted from it was wider than in Q2 214. In April, the price of fuel oil was supported by reduced refining activity and export opportunities to Asia. In the middle of the quarter, export opportunities became more limited and fuel oil supplies, including those from Russia, grew as refineries came out of maintenance. Altogether, during the quarter the crack spread trended downward. Since the beginning of 215 when the sulphur limit for marine fuels in areas including the Baltic and the North Sea was lowered to.1%, use of fuel oils with 1% sulphur content has become more restricted in Europe and European refineries are looking for new markets for the product such as Asia and the United States. Emission Allowance Prices In Q2, the price of CO 2 emission allowance futures maturing in December 215 was 33.3% higher, on average, than in 214. During the quarter, the prices of emission allowances followed a rising trend. CO 2 Emission Allowance Prices Average price ( /t) Q2 215 Q2 214 Change CO 2 December 215 7.4 5.5 +33.3% CO 2 December 216 7.5 5.8 +29.4% The European carbon allowance market is saturated. The EU is planning to stabilise its emissions trading system by setting up a market stability reserve in order to support the allowance prices and ensure that industries have incentives to invest in environmentfriendly production. By the end of April the markets received the news that establishment of the stability reserve could be deferred until 219 and that the previously backloaded carbon allowance units would be included in the reserve. In addition, from the middle of the quarter emission allowance prices were strengthened by a rise in power prices in Germany. In Q2, emission allowance prices were somewhat adversely impacted by a short-term weakening of the euro against the US dollar in the second half of May but on the whole this was outweighed by the markets expectations regarding the creation of the market stability reserve and the possible resolution of the Greek crisis. Prices of CO 2 Emission Allowances, /t 213 214 215 Price for December 215 future Price for December 216 future Source: Thomson Reuters Electricity Prices In Q2 215, the Nord Pool Spot (NPS) system price fell by 19.4% year over year. Electricity prices dropped by 23.6% in Latvia, 23.1% in Lithuania, 13.6% in Estonia and 25.2% in Finland. In June, Estonia s average exchange price was 27.3 /MWh, which is the lowest average monthly price since the launch of the Estonian price area in April 21. Electricity Prices on NPS Electricity Exchange Average price ( /MWh) Q2 215 Q2 214 Change System price 2.7 25.7-19.4% Finland 25.8 34.6-25.2% Estonia 1 3. 34.8-13.6% Latvia 38.3 5.2-23.6% Lithuania 38.6 5.2-23.1% In the second half of Q2, the level of the Nordic water reservoirs was below the historical median due to lower than usual air temperature which slowed the melting of snow in the Scandinavian mountains. Still, the decline in Q2 electricity prices is attributable to 1 Average Nord Pool Spot electricity market price. This price may differ compared with Eesti Energia s electricity sales prices achieved on wholesale market. 1 8 6 4 2
Eesti Energia Q2 Interim Report, 1 April 3 June 215 9 high output of cheap Nordic hydro power as well as suitable wind conditions that allowed generating sufficient wind power. Levels of Nordic Water Reservoirs, % of Maximum 1 8 6 4 2 1 6 11 16 21 26 31 36 41 46 51 Historical median (1992-214) Year 214 Year 215 Source: Thomson Reuters In Q2 215, the Finnish electricity price exceeded the Swedish one by 4.4 /MWh on average. During the period, the constantly utilised transmission capacities from Sweden to Finland were at times restricted, which increased price differences between the areas. The Estonian electricity price exceeded the Finnish one by 4.2 /MWh, on average, while in Q2 214 the Estonian electricity price was.2 /MWh higher than the Finnish one, on average. In Q2, cheaper Nordic power supplies to Estonia were restricted by the prolonged failure of the Estlink2 underwater power cable in May that caused a transmission bottleneck between Estonia and Finland. In June, there were fewer disruptions in the transmission interconnection between Estonia and Finland but a decline in the output of Estonian power plants increased demand for power supplies from Finland. Monthly Average Electricity Prices, /MWh 213 214 215 NPS Estonia NPS ELE/Latvia NPS Finland NPS system price Source: Thomson Reuters In Q2 215, the average price difference between the Estonian and Latvian price areas was 8.3 /MWh, the price in Latvia being higher. Compared with the same period last year, the price difference narrowed by 7.1 /MWh. In Q2, the average electricity price in Latvia climbed from month to month due to a decline in the output of local power plants which increased the need for electricity import. Compared with Q2 214, the Lithuanian power output grew by 72% to 75 5 25.8 TWh, curbing the rise in the Latvian and Lithuanian electricity prices to a certain extent. Electricity Prices in NPS Estonia Price Area in Q2 215, /MWh 75 5 25 1 Apr 1 May 31 May 3 Jun Daily minimum and maximum Daily average Quarterly average Source: Nord Pool Spot In Q2 215, Eesti Energia s Clean Dark Spread (CDS) in the NPS Estonia electricity price was 1. /MWh 2 (-8.1 /MWh, -89.5% compared to Q2 214). The fall in CDS was impacted by a fall in the NPS Estonia electricity price (-4.7 /MWh, -13.6% compared to Q2 214) and a rise in CO 2 and oil shale costs (total impact -3.4 /MWh). Eesti Energia Clean Dark Spread (CDS) in NPS Estonia Electricity Price, /MWh 6 42 45 44 41 42 36 35 38 4 32 3 19 21 2 17 9 9 15 2 8 5 1 Q1 213 Q2 Q3 Q4 Q1 214 Q2 Q3 Q4 Q1 215 Q2 NPS Estonia CDS Source: Thomson Reuters, Eesti Energia The Estonian and Latvian retail electricity markets have been fully open since the beginning of 213 and 215 respectively and free market prices apply. In Q2 215, the Lithuanian electricity market was partly open to competition. All companies in Lithuania purchased electricity from the open market but household consumers were not obliged to do so. According to estimates, in Q2 215 around 71% of the Lithuanian electricity market (in terms of consumption volume) was open to competition. Electricity Consumption in the Baltic Market in Q2, TWh 1,6,7 1,9 89% of consumption on open market 1,7 Estonia's open market Latvia's open market Lithuania's open market Regulated market in Lithuania Source: Eesti Energia estimate 2 Compared to Q1 215 interim report, CDS methodology has been slightly adjusted to include all operating expenses (excl. change in inventories) of Eesti Energia mining subsidiary. Unadjusted CDS decreased by 8.5 /MWh to 3.8 /MWh.
Eesti Energia Q2 Interim Report, 1 April 3 June 215 1 Financial Results Revenues and The Group ended Q2 215 with sales revenues of EUR 181. million (-11.5%, EUR -23.5 million compared with Q2 214), of EUR 69. million (+1.9%, EUR +1.3 million), an operating profit of EUR 33.4 million (-6.%, EUR -2.1 million) and a net profit of EUR 6.8 million (+1.%, EUR +.6 million). Net profit improved because the amount of income tax expense recorded for the period was smaller than in Q2 214 (-19.9%, EUR -5.7 million). The Group s sales revenues declined, mainly due to smaller electricity sales revenue which resulted from low exchange prices that curbed sales volume. The Group s improved, underpinned by a rise in the of all the core products. Electricity grew by 3.8%, EUR +.9 million, mostly due to lower fixed costs and higher profitability at the Latvian and Lithuanian energy sales units. Distribution increased by 7.5%, EUR +2. million, through growth in sales volume and a decrease in variable costs. Shale oil strengthened by 11.6%, EUR +1.5 million, based on larger sales volume (5.4% up on Q2 214). on other products and services declined by 58.5%, EUR -3.1 million, mainly due to a decrease in oil shale supplies to non-group customers. Group's Sales Revenues Breakdown and Change, m 3 2 1 25 22 2 54 18 (23.6) Sales revenues Q2 Electricity 214 +1.7 +4.4-11.5% (5.9) Shale oil Other Group's Breakdown and Change, m 1 8 6 4 2 181 16 24 56 85 Sales revenues Q2 215 68 +.9 +2. +1.5 (3.1) 69 5 2 13 14 27 29 23 24 Q2 214 Electricity Distribution Distribution +1.9% Shale oil Other Q2 215
Share of electricity product in Group's Eesti Energia Q2 Interim sales Report, revenues 1 April and 3 June 215 11 47% 35% % of sales revenues % of Electricity Electricity sales revenue amounted to EUR 84.6 million (-21.8%, EUR -23.6 million). In Q2 215, Eesti Energia sold 1,76 GWh of electricity (-24.2%, -545 GWh), retail sales accounting for 1,37 GWh (-1.1%, -15 GWh) and wholesale sales for 336 GWh (-61.2%, -53 GWh) of the total. The average sales price of electricity including gain on derivative instruments (but excluding renewable energy subsidies) was 47.3 /MWh (+1.1%, +.5 /MWh). The average sales price of electricity excluding gain on derivative instruments (and renewable energy subsidies) was 4.8 /MWh (-2.%, -.8 /MWh). Gain on derivative instruments accounted for 6.6 /MWh (+26.%, +1.4 /MWh) of the average sales price. Total gain on derivative instruments was EUR 11.2 million (-4.5%, EUR -.5 million). Average Sales Price, /MWh +1.1% 75-13.6% 5 25 46.8 47.3 Average electricity sales price* 34.8 3. NPS Estonia average electricity price Electricity Sales Revenue, m -21.8% 18 12 6 18 15 85 81 Q2 214 Q2 215 Subsidies Q2 214 Q2 215 Sales revenues (excl. subsidies) Retail sales * Total average sales price of electricity product (including retail sales, wholesale sales and gain on derivatives). Average sales price excludes subsidies Electricity Sales Volume, GWh 3-24.2% 2.3 2 1.7.9.3 1 1.4 1.4 Q2 214 Q2 215 Wholesale sales In the retail segment, sales volume declined due to weaker electricity sales in Lithuania. In Q2 215, open market retail sales in Latvia and Lithuania totalled 399 GWh (-13.6%, -62.6 GWh from Q2 214). In Estonia, retail sales of electricity grew year over year by 5.1% to 971 GWh on account of lower air temperature that increased consumption. In terms of customers electricity consumption volume, Eesti Energia s Q2 market share in Estonia was 6% (+2. percentage points on Q2 214) 3. Part of the growth in market share may be attributed to successful sales in the large clients segment. At 1 3 According to Estonian TSO Elering. July 215, Eesti Energia s Estonian customers purchased electricity at around 462,5 consumption points, a rise of approx. 1,5 consumption points in Q2. The increase in the number of consumption points was mainly related to customers switching over from the universal service to contract-based service. At 1 July 215, there were around 99, universal service consumption points, approx. 1, less than at the end of Q1. In addition, in Q2 electricity contracts were automatically extended. 98.4% of contracts for which an automatic extension offer was sent were renewed. In Latvia and Lithuania, Eesti Energia operates under the Enefit brand. Eesti Energia does not own substantial generation capacities in Latvia and
Eesti Energia Q2 Interim Report, 1 April 3 June 215 12 Lithuania. Therefore, to meet its obligations under sales contracts, the Group has to buy electricity from the power exchange. In Q2 215, prices in the Estonian and the Latvian and Lithuanian price areas remained divergent (the Latvian exchange price was 8.3 /MWh higher, on average, than the Estonian one). Due to the price difference, Eesti Energia incurred expenses of EUR 3.3 million (-54.2%, EUR -3.9 million) for the quarter. In 214, Eesti Energia did not offer fixedprice electricity contracts in Latvia and Lithuania (only electricity products indexed to the exchange price were sold). Sale of fixed-price contracts was restarted in Q1 215 and continued in Q2. Relaunching of fixed-price contracts became possible thanks to the steps taken by the Baltic system operators, which enable Eesti Energia to better hedge the risks related to the Latvian and Lithuanian border crossing costs. By the end of Q2 215, Eesti Energia had approx. 16,9 customers consumption points in Latvia and Lithuania, a rise of around 3,3 (+24%) during the quarter. Eesti Energia s Q2 market shares in Latvia and Lithuania were 17% and 5% respectively (+.5 and -2.7 percentage points year over year respectively). Shrinkage in the Lithuanian market share is attributable to temporary suspension of the offering of fixed-price contracts in autumn 213. Future growth in Latvian and Lithuanian market share will be influenced by the availability of sufficient quantities of liquid hedging instruments. The Group s total market share in the Baltic countries was 26%,.3 percentage points up on the same period last year. In Q2 215, the Group generated 1,671 GWh of electricity (-29.4%, -695 GWh). Electricity generation decreased because market prices dropped (in the Estonian price area the period s average exchange price of electricity fell by 13.6%). Electricity generated from renewable sources in Q2 215 amounted to 82.9 GWh (+27.3%, +17.8 GWh). The rise in the output of renewable energy resulted mainly from stronger output of wind energy. Most of the renewable energy was generated by wind parks (49.9 GWh, +26.1%, +1.3 GWh). Renewable energy and efficient cogeneration subsidies received by the Group totalled EUR 3.8 million (+35.%, EUR +1. million). Key figures of Electricity Product Q2 215 Q2 214 Return on fixed assets % 7. 13.3 Electricity /MWh 14.1 1.3 * Excluding impairment of generation assets in December 213 Electricity for Q2 215 was EUR 24. million (+3.8%, EUR +.9 million). Electricity Development, m 45 3 15 23.2 +1.5 (11.7) +5.6 24. +6. (.5) Q2 214 Margin impact on Volume impact on Margin change improved by EUR 1.5 million. Average electricity sales revenue grew by.2 /MWh (impact on EUR +.4 million), supported by higher renewable energy subsidies (+1. /MWh) and revenue from receiving waste (+.3 /MWh). The average sales price of electricity excluding renewable energy subsidies and revenue from receiving waste (and gain on derivative instruments) decreased by 1.2 /MWh. A decline in variable costs improved by EUR 1.1 million. Variable costs declined the most at the Latvian and Lithuanian energy sales units thanks to lower border crossing costs and electricity purchase expenses. The decrease in electricity sales volume (-24%) lowered by EUR 11.7 million. The change in fixed costs had a EUR +6. million impact on electricity. The main contributors were the fixed cost component that is linked to the change in inventories (EUR +1.8 million) and smaller repair costs, particularly at Narva power plants (total impact EUR +2.4 million). +3.8% Change in fixed costs Gain on derivatives Other Q2 215
Eesti Energia Q2 Interim Report, 1 April 3 June 215 13 Realised gain on derivative instruments, which decreased year over year, had a EUR -.5 million impact on electricity. Other impacts on electricity totalled EUR +5.6 million. The impact of provisions recognised for the Latvian and Lithuanian electricity portfolios was EUR +3.9 million (in Q2 215 relevant expenses were smaller than a year ago). Regular revaluation of derivative instruments and a year over year decline in environmental protection provisions impacted by EUR +1.1 million and EUR +.6 million respectively.
Eesti Energia Q2 Share Interim of Report, distribution 1 April product 3 June in Group's 215 14 sales revenues and 31% 42% % of sales revenues % of Distribution Distribution sales revenue for Q2 215 was EUR 55.9 million (+3.1%, EUR +1.7 million). Distribution sales volume amounted to 1,45 GWh (+2.4%, +34.7 GWh). Network losses totalled 82.3 GWh or 5.2% (Q2 214: 8.3 GWh or 5.2%). Average Distribution Tariff, /MWh 75 +.6% Distributon Sales Revenue, m 9 +3.1% Distribution Volume, TWh 3 +2.4% 5 38.3 38.6 6 54 56 2 1.4 1.4 25 3 1 Q2 214 Q2 215 The period s average distribution tariff was 38.6 /MWh (+.6%, +.2 /MWh). The average tariff was somewhat increased by revenue from additional (street lighting) services that is allocated to the distribution service. In Q2 215, the average duration of unplanned interruptions was 38 minutes (Q2 214: 28 minutes). The figure increased because in June more severe wind conditions raised the number of outages above the usual. The average duration of planned interruptions was 18 minutes (Q2 214: 16 minutes). To a certain extent, outages of the low-voltage network can be reduced by replacing regular overhead lines with weather-proof cables. In addition, the number of network interruptions is strongly influenced by weather conditions. Key figures of Distribution Product Q2 215 Q2 214 Return on fixed assets % 6.9 5.3 Distribution losses GWh 82.3 8.3 SAIFI index.5.4 SAIDI (unplanned) index 38.4 28.4 SAIDI (planned) index 17.5 16. Adjusted RAB m 699.9 653.1 Distribution for Q2 215 was EUR 28.6 million (+7.5%, EUR +2. million). Distribution Development, m +7.5% 45 3 15 26.6 +1.7 +.9 (.7) 28.6 Q2 214 Margin impact on Volume impact on Change in fixed costs Q2 215
Eesti Energia Q2 Interim Report, 1 April 3 June 215 15 Margin improvement increased distribution by EUR 1.7 million (+1.2 /MWh). The average distribution tariff rose by.2 /MWh, raising by EUR.4 million. The impact of a decrease in variable costs was EUR +1.4 million, the decline resulting mainly from lower costs from network losses. Growth in sales volume (+2%) improved distribution by EUR.9 million. Fixed distribution costs increased (impact on EUR -.7 million) in connection with work purchased from subcontractors for the provision of street lighting services.
Share of shale oil product in Group's Eesti Energia Q2 Interim sales Report, revenues 1 April and 3 June 215 16 13% 2% % of sales revenues % of Shale Oil Shale oil sales revenue was EUR 24.2 million (+22.%, EUR +4.4 million). In Q2 215, Eesti Energia sold 67.3 thousand tonnes of shale oil (+5.4%, +22.6 thousand tonnes). Sales volume increased mainly through growth in the Group s oil output. In addition, in the reporting period output was sold faster, which is why the quantity of oil taken into inventory was smaller. Average Shale Oil Sales Price, /t 75-18.9% -34.8% Shale Oil Sales Revenue, m 45 +22.% Shale Oil Sales Volume, ' tonnes 12 +5.4% 5 25 444 457 36 298 3 15 19.9 24.2 8 4 45 67 Average shale oil sales price Average price of heavy fuel oil (1%) Q2 214 Q2 215 Although the average sales price decreased, shale oil sales revenue grew through growth in sales volume. In Q2 215, the average sales price of shale oil was 359.7 /t (-18.9%, -83.8 /t). Thanks to successful hedging transactions, the average sales price of shale oil dropped less than the global market price of the reference product, heavy fuel oil (fell by 34.8% year over year). The average sales price was supported by gain on derivative instruments of 92.5 /t (+78.3 /t), EUR 6.2 million (EUR +5.6 million) in aggregate. Excluding the impact of derivative instruments, the average sales price of shale oil was 267.3 /t (-37.7%, -162.1 /t). The Group s shale oil output for the period was 73.2 thousand tonnes (+29.4%, +16.6 thousand tonnes). A strong contributor to output growth was the new Enefit28 oil plant whose Q2 output was 29.1 thousand tonnes. The output of the Enefit14 oil plant declined year over year (-9.4%, -4.6 thousand tonnes), mainly in connection with production mode tests conducted for reducing environmental emissions. Key figures of Shale oil Product Q2 215 Q2 214 Return on fixed assets % 3.4 3.2 Shale oil /t 29.1 281.9 Shale oil for Q2 215 was EUR 14.1 million (+11.6%, EUR +1.5 million). Shale Oil Development, m 3 2 1 12.6 Q2 214 (8.6) +7.6 (1.9) Margin impact on Volume impact on +11.6% Change in fixed costs +5.6 Gain on derivatives (1.3) Other 14.1 Q2 215 Margin decrease had a EUR -8.6 million (-127.5 /t) impact on. Margin decline was largely due to
Eesti Energia Q2 Interim Report, 1 April 3 June 215 17 a lower average sales price (-162 /t, impact on EUR -1.9 million). Lower variable costs improved by EUR 2.3 million. The impact of growth in sales volume was EUR +7.6 million; sales volume grew by 5%. Fixed costs grew by EUR 1.9 million, the figure including a EUR 1.4 million rise in shale oil-related labour costs. Labour costs grew both at the oil plants and the mines; in addition, the proportion of labour costs capitalised during the period decreased compared with a year ago. Gain on shale oil derivatives grew by EUR 5.6 million year over year. Other impacts on were EUR -1.3 million, most of it resulting from a regular revaluation of derivative instruments.
Share of other products and services in Group's Eesti Energia Q2 Interim sales Report, revenues 1 April and 3 June 215 18 9% 3% % of sales revenues % of Other Products and Services Eesti Energia s Q2 sales revenues from other products and services totalled EUR 16.3 million (-26.7%, EUR -5.9 million). Sales Revenues From Other Products and Services, m -26.7% 3 2 1 22 5 2 7 16 3 2 4 7 7 Q2 214 Q2 215 Other sales Technology Industries' products sales revenue Sales of natural gas Sales of mining products Sales of heat on other products and services sold in Q2 215 was EUR 2.2 million (-58.5%, EUR -3.1 million). Other Products and Services Development, m 15 1 5 5.3 Other Q2 214 +.6 (2.9) Heat -58.5% Mining products (.7) Other +2.2 Other Q2 215 Heat sales revenue remained steady compared with a year ago (+.7%). Heat grew by EUR.6 million, mostly because repair expenses at the Iru power plant decreased. Revenue from sales of mining products decreased by EUR 7.1 million (-98.4%) and declined by EUR 2.9 million because the quantity of oil shale supplied to external customers decreased. Revenue from sales of natural gas amounted to EUR 3.8 million (EUR +3.1 million compared with the same period last year). Sales of natural gas were supported by a decline in the prices of oil futures and increased awareness of Eesti Energia as a natural gas supplier. Other impacts on totalled EUR -.7 million, including the impacts of the sale of scrap metal (EUR -1.6 million) as well as a penalty payment charged by the Iru power plant for the builder s delay with the construction of the waste-to-energy unit (EUR +.7 million).
Eesti Energia Q2 Interim Report, 1 April 3 June 215 19 Cash Flows The Group s net operating cash flow for Q2 215 was EUR 63. million. Compared with (EUR 69. million), cash inflow from operating activities was 8.6% or EUR 6 million smaller. Compared with Q2 214, net operating cash flow decreased by 16.5% or EUR 12.5 million. Operating Cash Flow Changes, m 225-16.5% to Operating Cash Flows Development, m 225 15 75 69. +5.8 (13.7) +21.3 (17.9) (1.4) 63. 15 (-8.6%) 75.5 75 Operating cash flow Q2 214 +1.3 (8.3) +3. (12.6) +4.1 Change in CO2 impact Derivative instruments Change in inventories Other 63. Operating cash flow Q2 215 Q2 215 Compared with the Group s (EUR 69. million), operating cash flow was higher due to recognition of a provision of EUR 5.8 million for CO 2 emission allowances, a non-cash item (reducing ). CO2 impact Change in inventories Inventory growth lowered operating cash flow relative to by EUR 13.7 million, most of which (EUR 11. million) was attributable to growth in the Group s oil shale inventories. Change in current receivables Change in current liabilities Other A decrease in current receivables increased operating cash flow by EUR 21.3 million and a decrease in current liabilities reduced operating cash flow by EUR 17.9 million. Both changes were mainly due to a decline in the Group s electricity sales. Operating cash flow Q2 215 Compared with a year ago, net operating cash flow was lower because the provision made for CO 2 emission allowances was smaller (total impact EUR -8.3 million) due to the allowances lower average price and quantity. The impact of a change in inventories was EUR 12.6 million larger than a year earlier. Most of this (EUR -11.9 million) resulted from the impact of growth in oil shale inventories. Operating cash flow was supported, relative to the comparative period, by smaller unrealised gain on derivative instruments (EUR +3. million) and growth (+1.3 million). Other impacts were EUR +4.1 million. Other impacts were EUR -1.4 million.
Eesti Energia Q2 Interim Report, 1 April 3 June 215 2 Investment In Q2 215, the Group invested EUR 85.3 million (+5.8%, EUR +28.7 million). Capital expenditures grew year over year mostly in connection with the Auvere power plant project. In Q2 215, the largest capital investments were made in the Auvere power plant and the distribution network. Maintenance investments (EUR 12.2 million, +58.1%, EUR +4.5 million) grew mostly at subsidiaries involved in the oil shale business. At mining subsidiary, maintenance investments increased because trucks and face drilling rigs were acquired. In the oil plants, the rise was mainly attributable to the implementation of a vapour recovery unit and certain reconstruction work at the Enefit14 oil plant. At Narva power plants, relevant investments grew in connection with the maintenance of some generating units equipped with DeSOx systems designed for reducing sulphur oxide emissions. Multiple ongoing investment projects are nearing completion in 215, the Group s investments are expected to decrease in 216. Capex Breakdown by Projects, m 12 85 8 Capitalised interest 6 57 27 Auvere 3 MW power plant 8 4 12 Maintenance investments 12 8 3 8 Other developm. projects 24 23 Electricity network Q2 Q2 214 215 Investment Breakdown by Products, m 12 +5.8% 8 4 57 3 29 23 Q2 214 +5.8% 85 6 5 25 5 Q2 215 Longwall mining DeNOx equipment Other Shale oil Distribution Electricity Main Ongoing Projects, m Auvere power plant DeNOx Equipment Construction of chimneys Electrostatic precipitators Construction of the 3 MW Auvere Power Plant In summer 211, Eesti Energia started to build a new modern circulating fluidised bed (CFB) power plant in Auvere. The new power plant allows using biofuel alongside oil shale (to the extent of 5%), which helps reduce its emissions to the level of a contemporary gas-fired plant. The maximum annual net generation of the Auvere power plant is 2,192 GWh. For financing the construction of the power plant, the European Commission permitted Estonia to allocate to Eesti Energia a total of 17.7 million tonnes of free CO 2 emission allowances for the period 213-22. Of this amount, 5 million tonnes was received in April 214 and 4.3 million tonnes was received in April 215. During the period, the commissioning of the Auvere power plant continued. The first synchronization was carried out at the beginning of May. After that several start-up tests were performed and the plant was operated at different loads. In addition, the systems of the plant were adjusted and stabilised. According to plan, the power plant will be completed in 215. The total cost of the project is EUR 638 million (including the fuel feeding system). By the end of Q2, EUR 565 million (89%) of this had been invested. 22 15 4 565 73 638 15 3 45 6 75 Until Q2 215 Future Deadline End 215 End 215 End 215 End 215 Reduction of NO x Emissions at Eesti Power Plant The EU Industrial Emissions Directive that took effect in January 211 provides that starting from 216 the
Eesti Energia Q2 Interim Report, 1 April 3 June 215 21 concentrations of nitrogen oxides (NOx) in the waste gases released by large combustion plants may not exceed 2 mg/nm 3. In 213, one boiler of the Eesti power plant was supplied with a NOx capture (DeNOx) system, which reduced its NOx emissions approximately two times and brought them within the new limit. In 214, the Group decided to equip another seven boilers of four generating units with DeNOx systems. In the same year, works were completed on the second boiler of the third generating unit and both boilers of the sixth generating unit were supplied with DeNOx systems. In Q2, assembly of the DeNOx systems of the fifth generating unit was completed. Next, adjusting and warranty testing will be performed. Installation of the DeNOx systems is expected to be completed by 216. The total cost of the project is EUR 22 million. By the end of Q2 215, EUR 17.8 million (81%) of this had been invested. Improvement of Network Quality In Q2 215, investments in the quality of the distribution network amounted to EUR 22.6 million compared with EUR 23.7 million in Q2 214. During the period, 96 substations and 449 kilometres of underground and overhead cables were built (119 substations and 434 kilometres of cables in Q2 214). During the period 213-216, the distribution network operator Elektrilevi will install remote meters at all consumption points in Estonia. Implementation of the remote reading system, which releases the consumer from the obligation to submit the reading and provides information on network quality (interruptions) and typical loads that helps ensure the required level of the service, is prescribed by the law. During the quarter, 41 thousand remote meters were installed and 57 thousand meters were switched over to the remote reading system. By the end of the quarter, 413 thousand new hourly smart meters had been installed and 77% of the meters had been switched over to the remote reading system in the framework of the remote reading project. Meters with remote reading capability accounted for 67% of all of Elektrilevi s power meters (+6 percentage points compared to the end of Q1 215). Implementation of Longwall Mining Eesti Energia is going to implement longwall mining at its Estonia mine. Under the longwall technology, the costs of oil shale mining are lower than under the previously applied room-and-pillar technology because road way construction volumes are smaller. The method is similar to conventional room-and-pillar mining where pillars support the overlying strata (the ground) but mining takes place along a long work face that may extend to 7 metres in place of the conventional 2 metres. The purpose is to increase the production capacity of the Estonia mine in order to meet the Group s demand for oil shale. Preparations for the project began in 214. In Q2, belt conveyors were installed, underground ventilation barriers were built and control and communication cables were put in place. Construction is scheduled for completion at the beginning of 216, full capacity should be achieved in 217 when the additional oil shale output should amount to approximately.8 million tonnes per year. The total cost of the project is EUR 21 million. By the end of Q2, EUR 1. million (47%) of this had been invested. Preliminary Development of Electricity and Shale Oil Projects in Jordan Eesti Energia owns 65% of its electricity and shale oil projects in Jordan. Project partners are YTL Power International Berhad from Malaysia with a 3% interest and Near East Investment from Jordan with a 5% interest. In Q2 215, the main focus of the development activities was on the financing activities of the electricity project. Creditors and prospective investors continued to review the project and the parties involved continued to negotiate the financing agreements.
Eesti Energia Q2 Interim Report, 1 April 3 June 215 22 The planned net capacity of the first Jordanian oil shale power plant that is scheduled for completion in 219 is 47 MW. In the framework of the electricity project, work continued on the technical design of the mine and performance of additional hydrological studies in the course of which drilling of the second water borehole was completed and pumping tests were started. The preliminary development phase of the oil project is expected to last until 216. Its more detailed development plan will be reviewed when the electricity project s financing activities have been completed. Preliminary Development of the US Shale Oil Production Project In March 211, Eesti Energia acquired an oil shale resource in Uintah County, Utah (USA), which is currently estimated to contain 6.4 billion tonnes 4 of oil shale (based on best in-place estimate). In Utah, Eesti Energia operates under the name of Enefit American Oil. In 215, the business plan is being reviewed to focus on operations necessary to sustain the project s longterm value and cost-savings based engineering. In Q2 215, supporting activities included progress on the Environmental Impact Statement (EIS), both through circulation of the Administrative Draft of the EIS to Cooperating Agencies and ongoing utility engineering. The next step in the process is for the Bureau of Land Management to issue the Draft Environmental Impact Statement for public review and comment, expected in late 215. An appraisal of the potential market value of Enefit American Oil also continued. At the end of Q2, Enefit American Oil allowed a small option on the Orion property to lapse, relinquishing rights on 3,7 acres (12.4 square km) of property. 4 Measured resource 3.9 billion tonnes, indicated resource 2.5 billion tonnes, and inferred resource.3 billion tonnes of oil shale.
Eesti Energia Q2 Interim Report, 1 April 3 June 215 23 Financing Eesti Energia s main sources of debt capital are the international bond market and bilateral investment loans from the European Investment Bank (EIB). In addition, the necessary liquidity loan and guarantee facilities have been obtained from regional banks. Debt Maturity, m 5 419 4 3 2 1 4 3 64 6 19 19 18 18 18 19 12 12 12 18 At the end of Q2 215, the total nominal value of the Group s borrowings was EUR 936.5 million (at the end of Q1 215: EUR 936.5 million). The amortised cost of borrowings amounted to EUR 934.2 million (at the end of Q1 215: EUR 934.2 million). Long-term borrowings comprised Eurobonds listed on the London Stock Exchange with a nominal value of EUR 7 million and loans from the EIB with a nominal value of EUR 236.5 million. During the period, borrowings did not change. 318 '15 '16 '17 '18 '19 '2 '21 '22 '23 '24 '25 '26 EIB Eurobond Liquidity Development in Q2 215, m 6 4 2 +63. (7.4) 26.5 199.1 Liquid assets 3/31/215 Operating cash flow -3.6% Investment cash flow* Liquid assets 6/3/215 * excl. changes in deposits and other financial assets At the end of Q2 215, the Group s liquid assets (including deposits with a maturity of more than 3 months and liquid financial assets) stood at EUR 199.1 million. In addition, the Group s undrawn loans amounted to EUR 25 million consisting of bilateral liquidity loan facilities of EUR 15 million in aggregate provided by three regional banks (SEB, Pohjola and Nordea) maturing in September 218 and a long-term loan of EUR 1 million raised from EIB. The EIB loan can be drawn until October 215. After the reporting period, in July, the Group signed two new liquidity loan agreements: one with SEB and the other with Pohjola of EUR 15 million in aggregate. The maturity term of both new loan agreements is five years. The agreements expire in July 22 and similarly to the previous ones they are designed, above all, to support the Group s liquidity position and credit rating. The new agreements replaced the earlier liquidity loan agreements with SEB, Pohjola and Nordea of EUR 15 million in aggregate that were terminated in July. The agreements were renewed because of the positive situation in the regional banking market, which allowed the Group to extend its loan terms under favourable conditions. At the end of Q2 215, the Group s credit ratings were at the level of BBB (Standard & Poor s) and Baa2 (Moody s), both with a stable outlook. Standard & Poor s lowered Eesti Energia s credit rating in June by one notch (from BBB+) attributing it to low electricity prices that weaken the Group s financial ratios. At period end, the weighted average interest rate of Eesti Energia s borrowings was 3.95% (3.91% at the end of Q1 215). The Group has predominantly locked the risk resulting from fluctuations in the base interest rate (for 8% of borrowings the base interest rate is locked until maturity, for 15% until July 216 and 5% of borrowings have floating interest rates). All borrowings are denominated in euros. The Group s net debt as at the end of Q2 amounted to EUR 735.1 million (EUR +7.3 million compared to the end of Q1 215) and to net debt ratio was 2.3 (2.3 at the end of Q1 215). In Q2 215 Eesti Energia has established a new Group financial policy target to remain below 3.5x net debt /, which corresponds to the leverage limit established by the sole shareholder.
Eesti Energia Q2 Interim Report, 1 April 3 June 215 24 Under its loan agreements, Eesti Energia has undertaken to comply with certain financial covenants. At the end of Q2 215, the Group s financial indicators complied with all contractual covenants. Net Debt / Ratio & Financial Leverage Net Debt/, times Financial Leverage, % 5 4% 33% 32% 3% 4 32% 3 2.3 2.3 2.3 24% 2 16% 1 8% % Q2 214 Q1 215 Q2 215 Net debt/ Financial leverage (right sc.)
Eesti Energia Q2 Interim Report, 1 April 3 June 215 25 Outlook for FY 215 The Group s sales revenues for the first 6 months of 215 amounted to EUR 4.8 million (-7.%, EUR -3.1 million). Six-month amounted to EUR 156.8 million (+3.8%, EUR +5.7 million). The Group s investments in first-half year totalled EUR 137.7 million (+5.6%, EUR +7.3 million). The Group s sales revenues outlook for 215 has changed compared with the forecast in Q1 215 interim report. Sales revenues are likely to decline* compared with 214. The outlook change is related to a worsened forecast of electricity market prices compared with outlook in Q1 215 interim report. Outlook for is retained at decline*. Sales Revenues, m 1,25 Decline* 1, 88, m 1,25 1, Investments, m 1,25 1, 75 252 75 75 5 25 197 25 181 226 22 214 215 5 312 *Slight growth / slight decline 5%, growth / decline > 5% Decline* 25 87 74 68 69 83 88 214 215 Q1 Q2 Q3 Q4 5 25 276 Growth* 75 71 57 85 74 52 214 215 Closed Positions The Group s sales revenues from electricity and shale oil sales depend on global market prices. The Group s performance indicators are mainly impacted by the electricity price on the Nord Pool Spot power exchange and the world market price of fuel oil with 1% sulphur content, which is a reference product for shale oil. The Group has sold forward 3.4 TWh of electricity (average price 4.2 /MWh) and 15 thousand tonnes of shale oil (average price 415.2 /t) to be delivered in 215 Q3-Q4. Forward sales for delivery in 216 include 3.4 TWh of electricity (average price 37.8 /MWh) and 131 thousand tonnes of shale oil (average price 356.6 /t). The Group s CO 2 emissions position that has been covered with forward contracts (taking into account free emission allowances received from the state as investment support and the surplus of previous periods) amounts to 8.8 million tonnes (average price 3.8 /t) for 215 and 13. million tonnes (average price 5.2 /t) for 216.
Eesti Energia Q2 Interim Report, 1 April 3 June 215 26 Condensed Consolidated Interim Income Statement and Statement of Comprehensive Income CONSOLIDATED INCOME STATEMENT 3 months 6 months 12 months Note in million EUR 1 April - 3 June 1 January - 3 June 1 July - 3 June 215 214 215 214 215/14 214/13 Revenue 181. 24.6 4.8 43.9 849.8 93.3 3 Other operating income 3.9 3. 1.4 6.8 26.8 8.8 Government grants.1 -.1.1.3.4 Change in inventories of finished goods and work-in-progress 11.9 (.1) 16. 6.5 8.6 (.5) Raw materials and consumables used (75.7) (84.9) (166.4) (187.) (354.9) (368.1) Payroll expenses (34.4) (32.9) (69.3) (67.2) (144.2) (145.2) Depreciation, amortisation and impairment (35.6) (32.1) (7.6) (63.7) (133.1) (141.) Other operating expenses (17.8) (22.) (34.8) (39.) (68.4) (82.3) OPERATING PROFIT 33.4 35.6 86.2 87.4 184.9 175.4 Financial income 1.5 1. 2.9 2. 5.3 3.8 Financial expenses (5.) (1.6) (4.5) (3.3) (6.2) (5.7) Net financial income (expense) (3.5) (.6) (1.6) (1.3) (.9) (1.9) Profit from associates using equity method - - - - (2.4) (.8) PROFIT BEFORE TAX 29.9 35. 84.6 86.1 181.6 172.7 CORPORATE INCOME TAX EXPENSE (23.1) (28.8) (23.1) (28.8) (18.) (24.) 8 PROFIT FOR THE PERIOD 6.8 6.2 61.5 57.3 163.6 148.7 Equity holder of the Parent Company 7. 6.2 61.8 57.1 164.2 148.9 Non-controlling interest (.2) - (.3).2 (.6) (.2) Basic earnings per share (euros).1.1.1.9.26.24 9 Diluted earnings per share (euros).1.1.1.9.26.24 9 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME in million EUR 3 months 6 months 12 months 1 April - 3 June 1 January - 3 June 1 July - 3 June 215 214 215 214 215/14 214/13 PROFIT FOR THE PERIOD 6.8 6.2 61.5 57.3 163.6 148.7 Other comprehensive income Items that may be reclassified subsequently to profit or loss: Revaluation of hedging instruments (8.8) (36.1) (26.2) (25.5) (.7) (16.3) Currency translation differences attributable to foreign subsidiaries (2.1).3 3.9.5 8.3 (1.3) Other comprehensive income for the period (1.9) (35.8) (22.3) (25.) 7.6 (17.6) TOTAL COMPREHENSIVE INCOME FOR THE PERIOD (4.1) (29.6) 39.2 32.3 171.2 131.1 Equity holder of the Parent Company (3.9) (29.6) 39.5 32.1 171.8 131.3 Non-controlling interest (.2) - (.3).2 (.6) (.2)