Ignitis Grupe Ab · OMXVSE:IGN1L
Ignitis Grupe Ab — Ignitis Group — Non-Deal Roadshow (May 2024)
50 slides from Ignitis Grupe Ab's roadshow presentation, May 2024
Slide 1: Renewables-focused integrated utility and the largest energy group in the Baltics
VIDAUS NAUDOJIMO Renewables-focused integrated utility and the largest energy group in the Baltics
Slide 2: Legal notice
Investor presentation Legal notice This document has been prepared by AB „Ignitis grupė” (Ignitis Group) solely for informational purposes and must not be relied upon, disclosed or published, or used in part for any other purpose. The document should not be treated as investment advice or provide ba
Slide 3: 1. Business model and strategy
Investor presentation 1. Business model and strategy Renewables-focused integrated utility 3 /50
Slide 4: Ignitis Group
Investor presentation Ignitis Group Renewables-focused integrated utility – 4–5 GW of installed Green Capacities by 2030 – Net zero emissions by 2040–2050 – Focus on green generation and green flexibility technologies: onshore and offshore wind, batteries, pumped-storage hydro and power-to-X – Integ
Slide 5: Integrated business model
Investor presentation Integrated business model We are utilising integrated business model to maximise potential Green Capacities Adjusted EBITDA 2023 Networks #1 in Lithuania1 Installed capacity: 1.4 GW Fully regulated country-wide #1 in the Baltics2 #2 in the Baltics1 Pipeline: 6.0 GW natural mono
Slide 6: Our equity story
Investor presentation Our equity story An attractive blend of growth and yield A proven track record Renewables-focused integrated utility, leading energy transition EURm in the Baltics: 469.3 484.7 – 1.4 GW operational. x2 – 4–5 GW target of installed Green Capacities by 2030 (x4 vs. 2022). 332.7 –
Slide 7: Purpose
Investor presentation Purpose Our purpose is to create a 100% green and secure energy ecosystem for current and future generations We fulfil our purpose by leading the regional transition into a climate-neutral, secure and independent energy ecosystem and contributing to Europe’s decarbonisation by
Slide 8: 2. Context
Investor presentation 2. Context Energy transition in the region 8 /50
Slide 9: Context
Investor presentation Context Alignment and commitment to Europe’s decarbonisation and ensuring energy security in our region Decarbonisation: EU action and climate related targets Energy security: scaling-up and speeding-up of renewable energy The European Union proposes ambitious net greenhouse Eu
Slide 10: Significant opportunities for green energy expansion in the Baltics and Poland
Investor presentation Significant opportunities for green energy expansion in the Baltics and Poland Lithuania: Structural electricity deficit Green energy development forecast, installed capacity GW4, 5 Only ~40% of electricity consumption is covered by national generation (in the Baltics and Polan
Slide 11: 3. Business segments
Investor presentation 3. Business segments Green Capacities | Networks | Customers & Solutions | Reserve Capacities 11 /50
Slide 12: Green Capacities
Investor presentation Green Capacities Strategic priorities: Delivering 4–5 GW of installed green generation and green flexibility capacity by 2030 with a focus on: – Onshore and offshore wind – Batteries, pumped-storage hydro and power-to-X Focus markets: The Baltic states and Poland We are also ex
Slide 13: Green Capacities targets
Investor presentation Green Capacities targets 2027: 2.4–2.6 GW1 2030: 4–5 GW1 x4 4–5 GW x2 2.4–2.6 GW 1.3 GW 2023 2027 2030 Operational Target Target 1 Gross installed capacity (includes 100% of capacity which Ignitis Group owns >50%). 13 /50
Slide 14: Green Capacities Portfolio
Investor presentation Green Capacities Portfolio 7.4 GW1 By stage, GW By technology, GW By geography, GW By type, GW 0,1 1,0 1,4 1,1 1,1 0,4 Secured capacity2 2,9 2.9 GW 3,8 7.4 GW 0,9 7.4 GW 7.4 GW 7.4 GW 1,6 4,2 1,8 0,7 0,7 6,3 1,7 Installed capacity Onshore wind Green generation Lithuania Under c
Slide 15: We focus on technologies that can deliver a 100% green and secure energy ecosystem
Investor presentation We focus on technologies that can deliver a 100% green and secure energy ecosystem Green generation technologies Green flexibility technologies Focus technologies Focus technologies Onshore wind Batteries The conditions in the Baltics and Poland are favourable for onshore wind
Slide 16: Offshore wind
Investor presentation Offshore wind Green generation Offshore wind potential in the Baltics Our target – one project in Lithuania Publicly announced auctions Long term We aim to build at least (COD ~2030) for 2023–2027 potential 2 offshore wind – at least one more project in the Baltics projects (CO
Slide 17: Onshore wind
Investor presentation Onshore wind Green generation Onshore wind development forecast Our progress: in the Baltics and Poland Our target Total onshore wind installed capacity ~22 GW in 20301 Installed2 Under construction Total: 283 MW Total: 437 MW >700 MW onshore wind capacity Baltics installed by
Slide 18: Complementary technologies
Investor presentation Complementary technologies Green generation and green flexibility technologies Solar development forecast Solar Our progress: in the Baltics and Poland Total solar installed capacity ~27.8 GW in 20301 Solar capacity under construction2 Our target Total: 291.1 MW Baltics >400 MW
Slide 19: Pumped-storage hydro
Investor presentation Pumped-storage hydro Green flexibility Kruonis PSHP is one of the largest energy storage facilities in Europe: Current capacity Expansion in 2026 Capabilities post-2026 900 MW +110 MW 1,010 MW Four operating units (4x225 MW) can perform New 5th unit (1x110MW) will provide extra
Slide 20: Batteries and Power-to-X
Investor presentation Batteries Power-to-X Green flexibility Green flexibility Our target Batteries Our target Green hydrogen & e-fuels Commercial- Batteries enable integration of Green hydrogen Ignitis group‘s strategy is to pursue the scale batteries renewables by facilitating demand production an
Slide 21: Operating model
Investor presentation Operating model We are delivering value across all execution stages Value-creation concept Adding value throughout the project execution stages Combining with Operation complementary technologies 7 Asset rotation 6 Structuring Financing 5 power offtake We operate renewable agre
Slide 22: Power offtake capabilities
Investor presentation Power offtake capabilities We utilise our supply portfolio to structure offtake agreements to enable Green Capacities build-out that creates a competitive advantage Electricity generated1 vs supplied by Ignitis Group in 2023, Electricity generated1 vs supplied by Ignitis Group
Slide 23: Strategic partnerships
Investor presentation Strategic partnerships We partner with strategic investors to adopt new technologies or enter new markets Partnership with Ocean Winds: Partnership with Copenhagen Partnership with Fortum: adopting offshore wind technologies Infrastructure Partners: adopting WtE technologies pa
Slide 24: Networks
Investor presentation Networks Strategic priorities: 1. Resilient and efficient electricity distribution 2. Electricity network expansion and facilitation of the energy market 3. End-to-end customer experience Focus market: Lithuania 24 /50
Slide 25: Networks regulatory framework
Investor presentation Networks regulatory framework The largest network in the Baltics, a natural Electricity Natural gas 1 monopoly for distribution services >99.5%1 of the Lithuanian market Regulated Asset Base, 2024 1.3 EURbn 0.3 EURbn Allowed revenue Approved WACC (pre-tax), 2024 1 2 3 Return on
Slide 26: Strategic focus on electricity network and customers
Investor presentation Strategic focus on electricity network and customers Resilient and efficient electricity Electricity network expansion and End-to-end customer distribution facilitation of the energy market experience Maintenance: modernization (efficiency and Standardised solutions and channel
Slide 27: 3. Financials
Investor presentation 3. Financials Investments, target returns, leverage and dividends 27 /50
Slide 28: Investments over 2024–2027
Investor presentation Investments Investments over 2024–2027 aligned with 3.0–4.0 EURbn the EU Taxonomy 94.8% (2023) ≥85–90%2 2024–2027 targeted level ~6%1 Green Capacities installed, GW Regulated Asset Base, EURbn ~2x ~61% 1.8–2.4 3.0–4.0 ~33% 1.1–1.3 Growth by ~50% 2.4–2.6 EURbn EURbn EURbn ~2.0–2
Slide 29: Investments over 2024–2027: Green Capacities
Investor presentation Investments over 2024–2027: Green Capacities Investments over 2024–2027 By technology, % By geography, % ~5% ~6% ~50% ~3% ~15% 1.8–2.4 1.8–2.4 ~56% ~50% EURbn EURbn ~18% ~44% 1.8–2.4 Onshore wind Lithuania EURbn Offshore wind Other Solar ~53% Hydro Other Investments per MW, mEU
Slide 30: Investments over 2024–2027: Networks
Investor presentation Investments over 2024–2027: Networks ~5% ~39% 1.1–1.3 EURbn ~56% Electricity network expansion Electricity network maintenance and other Natural gas network 30 /50
Slide 31: Target returns
Investor presentation Target returns EBITDA expected to reach EUR ~550–650m in 2027, mainly driven by Green Capacities and Networks Targeted IRR–WACC spread Adjusted EBITDA, EURm Adjusted ROCE, % up to 8% CAGR ≥ 100 bps in commercial/ ~ 550–650 non-regulated activities 9,8% 484.7 30,4 6.5–7,5% 49,9
Slide 32: Commitment to a solid investment-grade credit rating
Investor presentation Commitment to a solid investment-grade credit rating We expect to maintain Net debt/Adjusted EBITDA BBB or above credit rating over the 2024–2027 period Targeted level <5.0x 2.7x 2023 2024–2027 average 32 /50
Slide 33: Growing dividends
Investor presentation Growing dividends We are committed to increase dividends >3% annually Minimum annual dividends, EURm (declared for the financial year) ≥104,8 EURm 7.3–8.0% Implied dividend yield ≥101,7 EURm over the 2024–2027 period ≥98,8 EURm ≥95,9 EURm Dividend policy 93,1 EURm We are commit
Slide 34: 4. Highlights
Investor presentation 4. Highlights Growing sustainable return to our shareholders 34 /50
Slide 35: Highlights
Investor presentation Highlights Our purpose is to create a 100% green and secure energy ecosystem for current and future generations Green Flexible Integrated Sustainable 2027: 2.4–2.6 GW 3.0–4.0 EURbn 550–650 EURm 2030: 4–5 GW Investments Adjusted EBITDA Green Capacities 2024–2027 2027 2027: 215–2
Slide 36: Q&A
Investor presentation Q&A 36 /50
Slide 37: Supplementary information
Investor presentation Supplementary information 37 /50
Slide 38: Customers & Solutions: utilising and further expanding our customer portfolio
Investor presentation Customers & Solutions: utilising and further expanding our 1.4 million Customers: B2B & B2C in 2023 The largest customer base customer portfolio to enable the Green Capacities build-out in the Baltics Utilising and further expanding Building a leading EV charging Speeding up th
Slide 39: Reserve Capacities: reliability and security of the power system
Investor presentation Reserve Capacities: we utilise reserve capacities to ensure reliability and security of the power system Option to generate electricity in the market during low renewables generation /positive clean spark spread periods 2023 2023–2030 Providing mainly ancillary services 1.1 GW
Slide 40: Our people
Investor presentation Our people We are organically building an entire organisation ~4,400 from the scratch in renewables Employees in 2023 (Ignitis Group) Ignitis Renewables organization growth, No. of employees ~3.5x ~150 We are a diverse team of energy smart people united by a common purpose to c
Slide 41: ESG priorities and targets 2027
Investor presentation ESG priorities and targets 2027 Employee Sustainable Priority Decarbonisation Safety Diversity experience value creation Total Employee Gender Reducing the carbon intensity Zero Sustainable Sustainable recordable experience diversity of scope 1 & 2 GHG emissions fatal accidents
Slide 42: Decarbonisation pathway aligned with our business ambitions
Investor presentation Decarbonisation pathway aligned with our business ambitions 2023 2024−2027 2040−2050 1. Reducing carbon intensity of scope 1 & 2 GHG emissions (market based), g CO2-eq/kWh priority GHG emissions, total Reducing by 20–40% #1 360 420 Scope 1 and 2 6,8% 8,6% 320 Growing green gene
Slide 43: 3M 2024 result highlights
Investor presentation 3M 2024 result highlights Continued Green Capacities Portfolio growth Strategy Sustainability Finance – Green Capacities Portfolio growth to – Decrease in Scope 2 emissions – EBITDA of 181.7 EURm, +21.2% YoY 7.4 GW, +0.3 GW QoQ – Improved OHS performance – Investments of 209.5
Slide 44: Continued Green Capacities growth
Investor presentation Continued Green Capacities growth Portfolio reached 7.4 GW and Installed Capacity – 1.4 GW Green Capacities Portfolio split Green Capacities Portfolio By technology Biomass & WtE Hydro GW 1.1 GW 0.1 GW 7.1 7.4 +0.3 GW 7.4 Onshore wind 2.9 GW Offshore wind GW total Portfolio 1.7
Slide 45: Ongoing sustainability initiatives
Investor presentation Ongoing sustainability initiatives Decrease in Scope 2 GHG emissions, improved OHS performance, and high employee satisfaction GHG emissions Electricity Generated (net), Safety million t CO2 -eq Green Share of Generation TRIR TWh, % 95.6% 2,00 1,40 100% 1.61 1,80 2,50 79.9% +12
Slide 46: Financial performance overview
Investor presentation Financial performance overview Adjusted EBITDA growth recorded across all business segments except Reserve Capacities. Green KPIs1, EURm 3M 2024 3M 2023 ∆ Capacities segment remains the largest contributor Adjusted EBITDA 181.7 149.9 21.2% to Adjusted EBITDA (42.4% of the Group
Slide 47: Guidance 2024
Investor presentation Guidance 2024 Adjusted EBITDA of 440–470 EURm and Investments of 850–1,000 EURm guidance reiterated Adjusted EBITDA APM Investments APM EURm EURm 937.1 850–1,000 17.7 25.0 346.8 484.7 440–470 30.4 49.9 180.0 542.7 222.6 2023 2024 2023 2024 realised guidance realised guidance Gr
Slide 48: Glossary
Investor presentation Glossary Advanced development Pipeline Projects which have access to the electricity grid secured through preliminary grid connection agreement (agreement signed and grid connection fee has been paid). Awarded / Contracted Projects with one of the following: (i) awarded in gove
Slide 49: Abbreviations
Investor presentation Abbreviations eNPS Employee Net Promoter Score k Thousand % Percent ENTSO-E European Network of Transmission System Operators for Electricity km Kilometer °C Degree Celsius API Application Programming Interface ESG Environmental, social and corporate governance kWh Kilowatt-hou
Slide 50: More about Ignitis Group
Investor presentation / 3M 2024 results More about Ignitis Group Reports & presentations IR contacts Sustainability IR@ignitis.lt Strategy 50 /50