Slide 1: H1 2023 Results Presentation
H1 2023 Results Presentation
Slide 2: Overview
Overview 1. Macroeconomic Update 2. Sector Update 3. Operational Performance 4. Financial Overview 5. Key Focus Areas Umeme H1 2023 Results Presentation 2
Slide 3: Uganda Economic Update
Uganda Economic Update Macros in brief CBR lowered to 9.5% from Continued improvement in the level of 10% (since Oct 22) economic activity, CIEA of 159.54 in Estimated annual growth June, up by 1.5% in May. of 5.3%, economy resilient and recovering well GDP drivers: services, industry and agricultur
Slide 4: Sector Updates
Sector Updates Commissioning and testing Karuma Hydro Power Consolidation of Government of Uganda agencies Plant ongoing. postponed to 2025 World Bank electricity scale-up project (targeting Reduction of connection costs & implementation of 1 million connections) Uganda Development Bank funded conne
Slide 5: Safety Report
Safety Report No. Network related fatalities 50 47 Non-network related fatalites (Illegal) 39 40 36 35 28 30 18 18 20 16 11 11 10 7 7 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 We recorded 7 non attributable fatalities related to network interference, power theft and unauthorized
Slide 6: Safety
Safety Safety Award Fire Marshall Training Wash lines School Safety Club Umeme H1 2023 Results Presentation 6
Slide 7: Growing Electricity Demand: +8.3%
Growing Electricity Demand: +8.3% GWh 2,100 +8.3% 2,031 2,000 ▪ Increase in sales driven by increase in economic activity 1,900 1,875 1,800 ▪ Driven by reduction in Energy Not Served 1,720 (ENS), Energy Loss reduction to 16.7%, 1,700 consumption growth and new connections 1,600 1,563 1,538 1,500 1,4
Slide 8: Electricity Sales
Electricity Sales Consumption per Customer Class % Share of Electricity ‘ Sales Domestic H1 2023 H1 2022 Customer Category (GWh) (GWh) Growth % Industrial – Extra Large 21.0% 26.0% Domestic 431.2 401.0 7.5% Commercial 223.5 205.1 9.0% Street Lighting 1.2 1.0 25.9% 11.0% Commercial Industrial – Mediu
Slide 9: Revenue Composition
Revenue Composition Revenue per Customer Class % Share of Revenue Industrial – Extra Large H1 2023 H1 2022 Growth 18% Customer Category (UShs Bn) (UShs Bn) (%) No. Domestic 29% Domestic 297.8 261.1 14.1% 1,734,882 Commercial 140.6 123.0 14.3% 90,725 Street Lighting 0.5 0.4 25.0% 302 Industrial – Med
Slide 10: Energy Losses
Energy Losses Improved Energy Loss Performance in 2022 % Half Year Energy Losses (%) • Loss-reduction activities resumed 18.5 • CSR and community partnerships to 18.0% 18.0 address losses and safety records in 17.5% low-income areas. 17.5 17.1% 17.0 • Reduced investments and growing 16.7% demand hav
Slide 11: Cash Collections
Cash Collections % 101 100.3 100 99.7 99.8 99.2 98.9 Ø 99.6 99 ▪ Revenue collection rate was 98.9%. 98 97 96 ▪ Average collection rate of 99.6% over 95 the years 94 93 92 ▪ Lag in collections from government in H1 91 which are now being cleared. 90 2019 2020 2021 2022 2023 Half Year Umeme H1 2023 Re
Slide 12: Customer Connections
Customer Connections Customer Numbers Prepaid vs Postpaid % of Total Revenue ('000) Pre-paid Post-paid +8.1% 2,000 1,830 1,693 28% 1,599 Prepaid 30% 33% 34% 33% 1,470 1,507 1,500 1,000 1,656 1,795 1,247 1,450 1,529 72% Postpaid 70% 67% 66% 67% 500 222 0 57 70 37 35 2019 2020 2021 2022 2023 2019 2020
Slide 13: Drive to Cost-Efficiency
Drive to Cost-Efficiency Operating Expenses Opex per KWh Ushs $m 40 80 75 71 72 35 34 -6% 32 70 65 30 30 29 65 61 26 60 25 55 55 20 50 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 ▪ Opex reduced by 6% due to operating efficiencies, technology ▪ Opex per KWh sold reduced by 9.8% while Opex uptak
Slide 14: Financial Overview ($m)
Financial Overview ($m) Income Statement H1 2023 H1 2022 %ch ▪ Revenue increased to $289m due Revenue 289.0 249.4 15.9% to growth in electricity sales and Cost of Sales (193.4) (172.0) 12.4% underlying pricing. Gross Profit 95.6 77.4 23.5% Operating Expenses (30.1) (32.0) -5.9% ▪ Umeme Gross Margin
Slide 15: Financial Overview (UShs bn)
Financial Overview (UShs bn) Income Statement H1 2023 H1 2022 %ch ▪ Revenue increased by 19.9% to Revenue 1,075.7 897.0 19.9% UShs 1,076 billion compared to UShs 897 billion in 2022. The Cost of Sales (719.8) (618.6) 16.4% growth is attributed to growth in Gross Profit 355.9 278.4 27.8% electricity
Slide 16: Free Cash Flow
Free Cash Flow Free Cash Flow (USD m) $m 60 +34% • Free Cash Flow increased 34% y/y 53 50 40 • Dividend payments to be aligned to cash generation 40 33 30 28 20 • Interim dividend payment in February 2024 following 10 closure of long-term debt facilities in Dec 2023. 0 Proposed interim dividend Ushs
Slide 17: 2023 H2 Focus Areas
2023 H2 Focus Areas Service Connections Regulatory Targets People & Institutional Focus on excellent Capacity service delivery through ▪ Connect more ▪ Losses ▪ Staff productivity automation, customers through ▪ Collections ▪ Recruitment of frontline responsiveness, reliability various financing ▪ C
Slide 18: Guidance
Guidance Leverage Capital Shareholder Expenditure Returns Long-term debt to be Optimizing Capex focused Maximize free cash flow for fully repaid at 31st on growth, reliability and shareholder distributions Dec 2023. efficiency projects. Recovery of the Buyout amount at the natural end of the concess
Slide 19: Question & Answer
Question & Answer Umeme H1 2023 Results Presentation 19