Redes Energeticas Nacionais Sa · EURONEXT:RENE
Redes Energeticas Nacionais Sa — REN - Redes Energéticas Nacionais — H1 2023 Earnings Presentation
25 slides from Redes Energeticas Nacionais Sa's earnings presentation, Jul 20, 2023
Slide 1: Results Presentation 1H23
Slide 2: Overview of the Period, Business Performance, Closing Remarks
I II III Overview of the Business Closing Period Performance Remarks
Slide 3: Overview of the Period
01 OVERVIEW OF THE PERIOD
Slide 4: Key messages - Financial
Key messages - Financial • EBITDA increased 11.1% to €264.9M vs 1H22, driven by: (1) domestic business performance (+€19.6M) as a result of the increase in assets and opex remuneration (+€15.5M), other revenues (+€1.9M) and lower core OPEX (-€2.2M) reflecting the decrease in electricity prices; (2)
Slide 5: Key messages - Operational
Key messages - Operational • Renewable Energy Sources (RES) increased to 60.7% of the total supply in 1H23, vs 47.4% in 1H22. • The consumption of electricity remained in the same level as of 1H22 (25.2 TWh) and consumption of natural gas decreased by 21.1% vs 1H22. • High levels of service quality
Slide 6: Business Performance
02 BUSINESS PERFORMANCE
Slide 7: Transportation Business highlights
Business highlights ENERGY CONSUMPTION IN ELECTRICITY COMING FROM RENEWABLES REACHING 60.7% IN 1H23 WITH SOLID QUALITY OF SERVICE Consumption Energy transmission losses Line length 0TWh 51km 25.2TWh (0.0%) 2.2% 0.4 pp 9,424km (0.5%) Electricity 1H22: 25.2TWh 1H22: 1.8% 1H22: 9,373km Renewables in co
Slide 8: Financial highlights
Financial highlights POSITIVE NET PROFIT EVOLUTION DRIVEN BY ROBUST OPERATIONAL PERFORMANCE EBITDA Financial results Net Profit 26.5 1.7 17.2 €264.9 (11.1%) €-16.7M (11.0%) €63.0M (37.5%) 1H22: €238.4M 1H22: €-15.1M 1H22: €45.9M CAPEX Average RAB1 Net Debt 33.0 69.4 294.4 €111.8M (41.9%) €3,533.2M (
Slide 9: Consolidated View
2. Business performance Consolidated View EBITDA INCREASED DRIVEN BY ASSETS AND OPEX REMUNERATION IN DOMESTIC BUSINESS AND BY STRONG INTERNATIONAL BUSINESS PERFORMANCE EBITDA evolution breakdown - €M EBITDA contribution by business segment4 - % €+26.5M (+11.1%) Electricity Gas Distribution5 6.9 264.
Slide 10: RoR Evolution - Domestic Business
RoR Evolution Domestic Business HIGHER PORTUGUESE BOND YIELDS CONTINUE TO SUPPORT AN INCREASE IN RETURN ON RAB RATES Portuguese 10Y Treasury Bond Yields - % Base Return on RAB (RoR)* - % 4 10Y Bond Yield Linear (10Y Bond Yield) 1H22 4.7 3 AVERAGE YIELD - % Electricity 1H23 5.3 2.2% 3.1% 1H22 1H23 2
Slide 11: Investment - Domestic Business
Investment Domestic Business TRANSFERS TO RAB AND CAPEX INCREASED IN 1H23 Transfers to RAB - €M Key Highlights Electricity Electricity €+11.1M Gas Transportation • Installation of a 220 kV line bay at the Fundão Substation. (+50.3%) Gas Distribution • Installation of a 150 kV line bay at the Castelo
Slide 12: RAB Evolution - Domestic Business
2. Business performance RAB Evolution Domestic Business DECREASE IN AVERAGE RAB REFLECTING HIGHER AMORTIZATION, MOSTLY IN GAS TRANSPORTATION BUSINESS Average RAB evolution - €M €-69.4M (-1.9%) 3,602.6 -19.4 7.5 3,533.2 -45.3 -12.3 Average RAB Electricity1 Gas Transportation Lands Gas Distribution Av
Slide 13: RAB Returns - Domestic Business
2. Business performance RAB Returns Domestic Business RAB REMUNERATION GROWTH ACROSS ALL BUSINESSES DRIVEN MOSTLY BY THE INCREASE IN THE RATE OF RETURN Return on RAB evolution breakdown - €M Electricity (GGS1) Gas Transmission Gas Distribution Return on 0.91 22.23 12.58 RAB 1H22 RoR evolution 0.12 2
Slide 14: OPEX - Domestic Business
2. Business performance OPEX Domestic Business OPEX INCREASED 28.5% YOY, WHILE CORE OPEX DROPPED 3.8% Core OPEX1 evolution - €M Key Highlights €-2.2M CORE EXTERNAL COSTS (-3.8%) 1.8 • LNG Terminal electricity costs decreased reflecting lower electricity prices (-€6.3M) 56.9 • Legal costs (+€0.7M), I
Slide 15: Chile Highlights - International Business
2. Business performance Chile Highlights International Business SOLID PERFORMANCE FROM THE CHILEAN BUSINESSES, CONTRIBUTING 6.0%1 TO TOTAL EBITDA IN 1H23 Contribution to EBITDA 1H23 - €M TRANSEMEL (100%) • EBITDA increased YoY mainly driven by higher revenues Revenues EBITDA 16.6 International €5.8M
Slide 16: Below EBITDA
2. Business performance Below EBITDA DECREASE IN FINANCIAL RESULTS, REFLECTING THE INCREASE IN THE AVERAGE COST OF DEBT Depreciation & Amortization Financial results Taxes 1.5 1.7 6.2 €125.8 (1.2%) €-16.7M (11.0%) €59.4M (11.6%) 1H22: €124.2M 1H22: €-15.1M 1H22: €53.2M • Increase of €1.5M vs 1H22, a
Slide 17: Net Profit
2. Business performance Net Profit NET PROFIT INCREASED AS A RESULT OF HIGHER EBITDA, PARTIALLY OFFSET BY LOWER FINANCIAL RESULTS AND HIGHER DEPRECIATIONS, TAXES AND CESE Net profit evolution breakdown - €M €17.2M Key Highlights (37.5%) 26.5 • Increase in EBITDA reflecting the positive -1.5 -1.7 -0.
Slide 18: Debt
2. Business performance Debt NET DEBT INCREASED DRIVEN BY TARIFF DEVIATIONS OUTFLOWS Net Debt evolution - €M Net Debt Cost of Adjusted Gross Debt Maturity - €M (w/o tariff deviations) Debt 760 Net Debt 569 2,043.7 2,543.1 Gross 445 363 Dec 2022 1.7% debt 294 Operating adjusted -337.1 Cash Flow 2.432
Slide 19: Share price & Shareholder Return
2. Business performance Share price & Shareholder Return REN’S SHARE ENDED H1 WITH A TSR OF 2.5%, CONTINUING TO PROVIDE A POSITIVE RETURN Annualized closing prices - % Analyst recommendations1 113 Average Price target 112 REN Stoxx Utilities PSI20 111 €2.78 €0.12 (4.3%) 110 1H22: €2.66 109 108 107 1
Slide 20: ESG highlights
ESG highlights REN IS STRONGLY COMMITTED WITH SUSTAINABILITY ENVIRONMENTAL SOCIAL GOVERNANCE TARGETS -50% CO2 emissions by 2030 vs. 2019 >1/3 of women in 1st line management positions Increasing ESG weight in managers’ performance by 2030 metrics already by 2022 Carbon neutral by 2040 100% of new bo
Slide 21: Highest ESG Standards
Highest ESG Standards IMPROVING OUR PERFORMANCE IN INTERNATIONAL ESG SCORES SCALE SCORE YoY STRENGTHS LATEST ASSESSMENT 0-100 62 Innovation, environmental reporting, and social reporting December 2022 D-A B Governance, business strategy, financial planning, scenario analysis, and scope 1 and 2 emiss
Slide 22: Closing Remarks
03 CLOSING REMARKS
Slide 23: Closing Remarks
Closing Remarks REN KEEPS PROVIDING STABLE RESULTS AND SOLID RETURNS ALONG WITH A HIGH LEVEL OF EXECUTION AND SERVICE QUALITY • EBITDA of €264.9M, representing an increase of • Net Profit increased to €63.0M (+37.5% YoY), €26.5M (+11.1% YoY) that reflects the improvements supported by a higher EBIT,
Slide 24: Disclaimer
Disclaimer This document has been prepared by REN – Redes Energéticas Nacionais, SGPS, S.A (the "Company") and its purpose is merely informative. As such, this document may be amended and supplemented at the discretion of REN and it should be read as a overview of the matters addressed or contained
Slide 25: Contacts
Contacts VISIT OUR WEB SITE AT WWW.REN.PT OR CONTACT US: Madalena Garrido – Head of IR Alexandra Martins Mariana Asseiceiro Telma Mendes Av. EUA, 55 1749-061 Lisboa Telephone: +351 210 013 546 ir@ren.pt
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