Slide 1: Half Year 2022 Results Presentation
Half Year 2022 Results Presentation 1
Slide 2: Overview
Overview 1. Country Macroeconomic Update 2. Sector Update 3. Operational Performance 4. Financial Overview 5. Key Focus Areas 6. Trading Update Umeme H1 2022 Results Presentation 2
Slide 3: Uganda Economic Update
Uganda Economic Update Quarterly GDP Contracted in Fiscal Q3 Interest Rates & Inflation % % 8.0 20.0 6.0 15.0 4.0 CBR - 9% 10.0 2.0 Headline Inf – 5.0 7.9% - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 19/20 19/20 19/20 19/20 20/21 20/21 20/21 20/21 21/22 21/22 21/22 21/22 - -2.0 Jan-20 Jul-20 Jan-21 Jul-21
Slide 4: Uganda Economic Update: Currency Depreciation
Uganda Economic Update Currency Depreciation UGX/USD 4,000 3,800 ▪ UGX has weakened 9% against the US Dollar by close of July 2022. 3,600 ▪ Currency performance influenced by rate tightening in advanced economies 3,400 3,200 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Umeme H1 2022 Results Presentatio
Slide 5: Sector & Business Update
Sector & Business Update Amendment of the Electricity Act Regulatory Developments Act signed on June 8th 2022, and provides for; • Increased penalties for power theft and • H1 tariff distribution margin averaged vandalism 35.1% • Strengthening of regulatory framework • Structure of the industry to a
Slide 6: Safety Report
Safety Report No. 50 47 Network related fatalities Non-network related fatalities (illegal) 39 40 36 35 30 28 20 18 18 16 11 10 7 6 1 2 1 1 0 0 0 0 0 0 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 We recorded 6 non attributable fatalities related to network interference, power theft an
Slide 7: Electricity Supply-Demand Outlook
Electricity Supply-Demand Outlook Installed Generation Maximum Demand MW MW 2,000 Karuma 900 800 1,600 Isimba hydro 700 1,200 Bujagali hydro Namanve & 600 800 Kakira hydro Kira & Nalubaale 500 400 400 - 2017 2018 2019 2020 2021 H1 2022 Pre-2000 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 1
Slide 8: Energy Demand Resilient: +9%
Energy Demand Resilient: +9% GWh Electricity Sales 2,000 1,875 1,800 1,720 • Double-digit consumption growth in domestic, commercial, medium – 1,600 1,563 1,538 industrial and large-industrial customers 1,461 1,400 • Driven by reduction in Energy Not Served (ENS), Energy Loss reduction to 17.1%, con
Slide 9: Electricity Sales
Electricity Sales Consumption per Customer Class % Share of Electricity Sales Industrial Parks H1 2022 H1 2021 Growth 1% Customer Category (GWh) (GWh) (%) Industrial - EV 27% Domestic 401.0 359.7 11.5% Domestic Commercial 205.1 183.7 11.6% 21% Industrial – LV 261.8 237.4 10.3% Street Lights and Publ
Slide 10: Revenue Composition
Revenue Composition Revenue per Customer Class % Share of Revenue Street Lights and H1 2022 H1 2021 Growth Public Amenities Customer Category (Ushs bn) (Ushs bn) (%) No. Industrial Parks 18% 0% Domestic 261.1 244.7 6.7% 1,600,133 Commercial 122.9 119.3 3.1% 88,716 Domestic Industrial - EV 30% Indust
Slide 11: Energy Losses
Energy Losses Strong Energy Loss Reduction in H1 % Losses (Quarterly) % 20 Energy Losses (%) 19.0% 18.4% 18.0 17.8% 18 17.5 17.1 18.0% 17.5% 16.6 16.4 17.2% 16.9% 16 17.0% 14 16.0% 12 15.0% 10 14.0% 8 13.0% 6 12.0% 2018 2019 2020 2021 2022 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 ▪ Loss-reduction activities re
Slide 12: Energy Losses: Community Engagement
Energy Losses: Community Engagement Project Pamoja “Together” Re-Training Uncertified Wiremen CSR-Based: Umeme working closely with local leaders, existing institutions and artisans Project Objectives • Create trusting relationships • Reduce losses • Reverse illegal connections • Improve Safety in t
Slide 13: Cash Collections
Cash Collections % 105 103 102.5 ▪ H1 2022 revenue collection rate was 101 100.3 99.7 99.8 99.8%. 99.2 99 ▪ Cash collections have remained high owing to investments in technology 97 and payment infrastructure. 95 2018 2019 2020 2021 2022 Umeme H1 2022 Results Presentation 13
Slide 14: Customer Connections
Customer Connections Customer Numbers Prepaid % of Total Revenue ('000) % 1,800 1,693 Post-paid Pre-paid 1,531 35% 1,600 1,526 33% 33.2% 1,470 1,400 1,292 30% 30% 1,200 28% 1,000 1,247 1,529 1,656 25% 24% 800 1,015 1,450 600 400 20% 200 277 222 57 70 37 - 15% 2018 2019 2020 2021 2022 2018 2019 2020
Slide 15: Drive to Cost-Efficiency
Drive to Cost-Efficiency Operating Expenses declined 6.5% y/y ▪ H1 Cost performance was supported by business reorganization Ushs Ushs 140 80 implemented at the start of 2022 123 120 115 110 ▪ Metering and Network Operations 106 101 70 100 countrywide combined into nimbler zones 80 60 ▪ Insourced se
Slide 16: Financial Overview ($m)
Financial Overview ($m) Income Statement H1 2022 H1 2021 %ch ▪ Revenue contraction attributed to Revenue 249.4 255.6 -2.5% pricing in tariff for large customers. Cost of Sales 172.0 173.4 -0.8% Umeme Gross Margin increased to 31% vs 27.3% in H1 2021. Gross Profit 77.4 82.3 -5.9% Operating Expenses (
Slide 17: Financial Overview (Ushs bn)
Financial Overview (Ushs bn) Income Statement H1 2022 H1 2021 %ch ▪ Revenue contraction attributed to Revenue 897.0 927.9 -3.3% pricing in tariff for large customers. Cost of Sales 618.6 629.3 -1.7% Umeme Gross Margin increased to 31% vs 27.3% in H1 2021. Gross Profit 278.4 298.6 -6.7% Operating Exp
Slide 18: Concession: Financial Priorities
Concession: Financial Priorities Reduce Leverage Optimize Capital Expenditure Dividends Long-term debt to Sustainable capex Distribute free cash be fully repaid at focused on growth and flow in line with 31st Dec 2023. reliability. Guidance ~ company policy. $30m-$40m Umeme H1 2022 Results Presentat
Slide 19: Trading Update
Trading Update Trading Performance (USE) Total Monthly Volumes Traded 35 450 50 Millions Millions 30 400 45 40 25 350 35 20 300 30 25 15 250 20 10 200 15 10 5 150 5 - 100 - Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jul-21 Sep-21 Nov-21 Jan-22 Mar-22 May-22 Jul-22 Sharehol
Slide 20: Investor Relations Calendar
Investor Relations Calendar 19th – 20th September 2022: EFG Hermes Conference Umeme H1 2022 Results Presentation 20
Slide 21: Question & Answer
Question & Answer Umeme H1 2022 Results Presentation 21