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ORLEN ORLEN Group 2017
Integrated Report

2017-2021 Strategy

GRI INDICATORS:
Capitals:

2017 was the first full year of implementing the strategy for 2017-2021, announced on December 15th 2016.

In line with the strategy, PKN ORLEN is going to focus on strengthening its market position, becoming a more customer-oriented organisation and leveraging the integrated value chain, with increasing importance of the petrochemical business and prudent continuation of the upstream projects. The focus on value-creating innovations is an important element of the strategy. The vision for PKN ORLEN’s growth set out in the new strategy fits well with global trends in the use of primary energy sources, technological progress and social processes, which are bound to create new consumer behaviours and expectations. The dynamics of the market environment force the Group to adjust its planning perspective. For this reason, the strategic directions in individual areas of the business were set for the next five years, while specific financial and operational targets were presented for 2017 and 2018 only, due to the volatility of the macroeconomic parameters.

Pillars of PKN ORLEN's strategy for 2017-2021:

Value creation

 
Integrated assets and strong market position of the Downstream segment
  • Feedstock security.
  • Operational excellence.
  • Effective sales strategy.
Development of the product and service range and high customer satisfaction in the Retail segment
  • Modern service station network.
  • Unique shopping experience.
  • Operational excellence.
The strategy of prudent continuation in Upstream
  • Increased hydrocarbon production in Poland and Canada.
  • Cautious continuation.

People

 
Innovations that create value
  • Culture of innovation.
  • Internal and external innovations.
Focus on safety and the environment
  • No accidents at work.
  • Process safety.
  • Care for the natural environment.
Actions motivated by ORLEN's core values
  • Responsibility.
  • Development.
  • People.
  • Energy.
  • Reliability.

Financial strength

 
Solid foundations
  • Investment-grade rating.
  • Financial leverage above 30%.
Secured financing
  • Diversified financing sources.
  • Non-organic growth opportunities.
Dividend paid
  • Consistent growth of dividend per share.
  • Dividend amount dependent on financial position.

Key objectives of the PKN ORLEN strategy for 2017-2018:

  • Annual average LIFO-based EBITDA of PLN 8.8bn.
  • Annual average capital expenditure of PLN 5.4bn.
  • Financial leverage maintained below 30%.
  • Stable growth of dividend per share.


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