Rusgidro · RUS:HYDR
Rusgidro — RusHydro — Q1 2020 Earnings Presentation
21 slides from Rusgidro's earnings presentation, Jun 4, 2020
Slide 1: RusHydro Group 1Q 2020 IFRS results & market update
RusHydro Group 1Q 2020 IFRS results & market update June 4, 2020
Slide 2: Disclaimer
Disclaimer The following applies to this presentation (“Presentation”), and you are therefore advised to read this important notice carefully before reading, accessing or making any other use of this Presentation. This Presentation and the information contained herein are strictly confidential to th
Slide 3: Agenda
I. Key highlights & operating results II. Market overview III. Financial Results IV. Update 3
Slide 4: Key figures & highlights of 1Q 2020
Key figures & highlights of 1Q 2020 39.0 117.7 36.6 31.1% 121.5 1.2x RUB bn EBITDA margin net debt/ TWh RUB bn RUB bn LTM EBITDA RusHydro Group power Revenue EBITDA in 1Q’20 net financial debt of output in 1Q’20 (1) in 1Q’20 (+23.8%) RusHydro Group (2) (+19.2%) (+7.5%) 1 • Total electricity output o
Slide 5: 1Q 2020 operating results
1Q 2020 operating results Strong performance, no volume risks foreseen • The reservoirs of the Volga-Kama cascade were filled to the maximum level following strong water inflows • Favorable production growth in April (please see slide 6) • No volume risks foreseen going forward ↗ Volga-Kama HPPs and
Slide 6: Stable production expected in 2Q'20
Hydropower production trends 2017-2020 Stable production expected in 2Q’20 Stellar operational results in 1Q’20 on the back of increase of water inflows: Stable production expected in 2Q’20: • Volga-Kama cascade – inflows to Rybinskaya, Zhigulevskaya and • Volga-Kama cascade – inflows slightly b
Slide 7: Market overview
I. Key highlights & operating results II. Market overview III. Financial Results IV. Update 7
Slide 8: Market overview: Stable pricing environment
Market overview Stable pricing environment Spot market price dynamics: 2019: 1st price zone – 1,298 RUB/MWh (+1.0% y-o-y), 2nd price zone – 774 RUB/MWh (-6.3% y-o-y) 1Q 2020: 1st price zone – 1,272 RUB/MWh (-9.4% y-o-y, +4.8% q-o-q), 2nd price zone - 886 RUB/MWh (-11.2% y-o-y, +12.4% q-o-q)
Slide 9: Market overview: RAO ES East tariff regulation
Market overview: RAO ES East tariff regulation Improvement of financial shape In 2020 average growth of electricity and heat tariffs in the Far Eastern Federal District amounted to 5.1% and 3.9% respectively Approved electricity tariff dynamics for key operating companies 1 Approved heat tariff dyna
Slide 10: Financial Results
I. Key highlights & operating results II. Market overview III. Financial Results IV. Update 10
Slide 11: 1Q 2020 Revenue
1Q 2020 Revenue Increase of water inflows and diversified asset base Key highlights Revenue dynamics Revenue in 1Q’20 increased by 7.5% and reached RUB 117.7 bn, primarily driven by hydropower production +7.5% growth on the back of increased water inflow 117.7 70% of revenues in 1Q 2020 came fro
Slide 12: 1Q 2020 EBITDA and profitability
1Q 2020 EBITDA and profitability Solid performance driven by hydropower segment Key highlights EBITDA & EBITDA margin dynamics EBITDA increased by 23.8% in 1Q 2020 and reached RUB 36.6 EBITDA bn, resulting in EBITDA margin of 31.1% following stronger than +23.8% EBITDA margin expected production g
Slide 13: Update
I. Key highlights & operating results II. Market overview III. Financial Results IV. Update 13
Slide 14: Debt profile
Debt profile (1) Solid financial position. Ruble-denominated debt Key highlights Debt repayment profile (2) (RUB bn) Total financial debt as of April 30, 2020: RUB 223.7 bn Total debt is 100% ruble-denominated following successful divestment of PJSC MEK Average RUB interest rate of 7.3% p.a.(2
Slide 15: 2020 outlook and key drivers of financial performance
2020 outlook and key drivers of financial performance 1 • RusHydro maintains solid operational outlook through 1H’2020 Operations • Increase in production following launch of Nizhne-Bureyskaya HPP, Zaramagaskaya HPP-1 and Sakhalinskaya GRES-2 2 Financial • Following commissioning of new generating f
Slide 16: Appendix
Appendix 16
Slide 17: Capex: investment plan 2020-2025
Capex: investment plan 2020-2025 Well-balance in terms of financing sources On March 26, 2020 the Board of Directors approved RusHydro’s new investment program for RUB 632 bn2. Key differences vs. prior investment program • Term of the program - 6 years vs. 5 years for the prior investment program •
Slide 18: Dividends
Dividends New policy ensures guaranteed payout Key highlights To improve predictability and consistency of forecasting dividend payments Board of Directors approved an amended 3- year dividend policy setting a minimum dividend threshold at average dividend paid over the previous three years: Divmi
Slide 19: Modernization of thermal capacities
Modernization of thermal capacities. 4 projects approved with guaranteed return on investment In July 2019 the Government approved all 4 projects submitted by RusHydro for modernization Characteristics Approved projects for modernization Yakutskaya GRES-1 Long-term plan for capacity renewal and De
Slide 20: Selected consolidated financial information
Selected consolidated financial information Consolidated income statement 3 months ended 31 March Consolidated statement of financial position As at 31.03.2020 As at 31.12.2019 RUB mn 2020 2019 RUB mn Revenue 106,214 99,237 ASSETS Government grants 11,470 10,223 Non-current assets Other operating in
Slide 21: Thank you for your attention
Thank you for your attention IR contact details tel.: +7 (495) 122 05 05 ext. 1304 ir@rushydro.ru 21