Slide 1: 3M 2023 results | Strategy update | Strategic plan 2023–2026
3M 2023 results | Strategy update | Strategic plan 2023–2026 23 May 2023
Slide 2: Legal notice
Investor presentation / 3M 2023 results, Strategy update and Strategic plan 2023–2026 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 d
Slide 3: Agenda
Investor presentation / 3M 2023 results, Strategy update and Strategic plan 2023–2026 Agenda 1. 3M 2023 results 4 2. Outlook 2023 17 3. Strategy update and 20 Strategic plan 2023–2026 Darius Maikštėnas, CEO 4. Supplementary information 76 Jonas Rimavičius, CFO 3 /33 3 /97
Slide 4: 3M 2023 results
Investor presentation / 3M 2023 results 3M 2023 results 4 /97
Slide 5: Highlights 3M 2023
Investor presentation / 3M 2023 results Highlights 3M 2023 Strong results Strong performance and Continued progress on reiterated guidance Green Generation despite lower power prices 149.9 EURm +0.2 GW Adjusted EBITDA Green Generation Portfolio • +34.6% YoY, driven by Reserve • To 5.3 GW (from 5.1 G
Slide 6: Progress on sustainability
Investor presentation / 3M 2023 results Progress on sustainability GHG emissions1 Electricity generated (net), Safety million t CO2 -eq Green share of generation TRIR 2.00 TWh, % 110% 2.50 2.20 1.61 1.80 1.00 1.60 0.08 1.44 94% 95% 100% 2.00 0.13 0.09 (11.0%) 0.80 1.52 1.40 0.15 0.10 0.58 90% 0.12 0
Slide 7: Operational performance
Investor presentation / 3M 2023 results Operational performance Progress across all business units Green Generation Reserve Capacities 1. Portfolio capacity increased by +0.2 GW to 5.3 1. Abandoned the tertiary power reserve services – GW. Ignitis 519 MW of capacity previously reserved for it, was 2
Slide 8: Green Generation Portfolio update
Investor presentation / 3M 2023 results Green Generation Green Generation Portfolio update Portfolio split Increase in Portfolio and Secured capacity By technology Biomass 0.1 GW Waste to energy Offshore wind 0.04 GW 0.7 GW Hydro 5.3 Onshore wind Green Generation Portfolio 1.1 GW GW 2.2 GW GW Solar
Slide 9: Green Generation projects status (QoQ)
Investor presentation / 3M 2023 results Green Generation projects status (QoQ) No significant changes in Portfolio implementation since Q4 2022 Expected COD Installed capacity 1.2 GW Q2 2023 Mažeikiai WF 63 MW Q3 2023 Vilnius CHP (biomass unit) 73 MW Q1 2024 Silesia WF I 50 MW 2023 – Q1 2024 Polish
Slide 10: Adjusted EBITDA
Investor presentation / 3M 2023 results Adjusted EBITDA Growth driven by Reserve Capacities Adjusted EBITDA APM EURm Development across business segments 149.9 +34.6% +23.7 EURm Utilised option to earn market premium by fixing a +483.7% positive forward clean spark spread. 111.4 70.0 70.0 +10.6 EURm
Slide 11: Returns
Investor presentation / 3M 2023 results Returns Increase in line with improved Adjusted EBITDA Adjusted net profit APM Adjusted ROCE LTM APM EURm % 88.7 100.0 +45.2% 14.0% 12.1% 90.0 +3.3 pp 80.0 12.0% 61.1 70.0 60.0 10.0% 8.8% 8.0% 50.0 40.0 6.0% 30.0 4.0% 20.0 2.0% 10.0 0.0 0.0% 3M 1 2022 2 3M 202
Slide 12: Investments
Investor presentation / 3M 2023 results Investments Growing Investments driven by Green Generation and Networks segments Investments APM EURm Key drivers 120.8 +94.8% Higher investments in electricity distribution +38.4 EURm network expansion (+27.4 EURm), caused by higher contractor fees2 and highe
Slide 13: Net working capital and Free cash flow
Investor presentation / 3M 2023 results Net working capital and Free cash flow Lower NWC mainly driven by lower level of inventory and lower energy prices 700 Net working capital APM 600 FCF1 APM EURm EURm 500 443.3 400 314.8 240 208.0 (29.0%) +365.2 220 200 300 180 160 140 200 120 100 80 60 100 40
Slide 14: Leverage metrics
Investor presentation / 3M 2023 results Leverage metrics Decrease in Net debt led to an improved leverage metrics Net debt/Adjusted EBIDTA LTM, FFO LTM/Net debt Times, % Net debt development APM EURm 100.0% 76.1% 7.0 80.0% 6.0 5.0 49.1% 60.0% 4.0 40.0% 0.2 2.1 3.0 14.6 128.5 20.0% 2.0 1.5 195.2 16.3
Slide 15: Liquidity reserve
Investor presentation / 3M 2023 results Liquidity reserve Liquidity reserve remains high due to increase in cash and undrawn credit facilities levels Liquidity reserve Due to extreme situation in energy markets, EURm 1,267 NWC increased significantly and reached EUR 1,068.7 million as of 30 Sept 202
Slide 16: Sustainable finance
Investor presentation / 3M 2023 results Sustainable finance Majority of our KPIs remain to be largely Taxonomy-aligned Adjusted EBITDA Taxonomy CAPEX Revenue Taxonomy OPEX 3M 2023 APM 3M 2023 APM 3M 2023 3M 2023 APM % % % % Taxonomy-eligible Taxonomy-non-eligible 20.5% 29.5% 70.5% 63.4% 39.7% 60.3%
Slide 17: Outlook 2023
Investor presentation / Outlook 2023 Outlook 2023 17 /97
Slide 18: Guidance 2023
Investor presentation / Outlook 2023 Guidance 2023 Adjusted EBITDA of 430–480 EURm guidance reiterated Adjusted EBITDA1 APM EURm Main drivers Current 500.0 469.3 430–480 • Expected lower average electricity price compared 450.0 to 2022. • Partly offset by launch of new assets (Mažeikiai 400.0 WF and
Slide 19: Key take aways: 3M 2023 results
Investor presentation / 3M 2023 results Key take aways: 3M 2023 results YoY Adjusted EBITDA increased by 34.6% and amounted to 149.9 EURm. Growth mainly driven by Reserve Capacities segment. Green Generation segment remained the largest contributor to Adjusted EBITDA (46.7% share of total). 430–480
Slide 20: Strategy update | Strategic plan 2023–2026
Investor presentation / Strategy update and Strategic plan 2023–2026 Strategy update | Strategic plan 2023–2026 Ignitis Group │ 2023 May 20 /97
Slide 21: Content
Investor presentation / Strategy update and Strategic plan 2023–2026 Content 1. Business model 22 2. Context 26 3. Purpose 30 4. Business segments 33 4.1. Green Generation 34 4.2. Customers & Solutions 48 4.3. Reserve Capacities 52 4.4. Networks 54 4.5. Summary 58 5. Sustainability 60 6. People 63 7
Slide 22: 1. Business model
Investor presentation / Strategy update and Strategic plan 2023–2026 1. Business model Renewables-focused integrated utility 22 /97
Slide 23: Ignitis Group
Investor presentation / Strategy update and Strategic plan 2023–2026 Ignitis Group • Renewables-focused integrated utility and the largest energy group in the Baltics • 4–5 GW of installed Green Generation capacity by 2030 • Net zero emissions by 2040–2050 • Focus on green and flexible technologies
Slide 24: Integrated business model
Investor presentation / Strategy update and Strategic plan 2023–2026 Integrated business model Green Generation Reserve Capacities #1 in Lithuania1 Installed capacity: 1.2 GW Highly regulated gas-fired powerplants #1 in Lithuania 1 #2 in the Baltics1 Pipeline: 4.1 GW mainly operating as system reser
Slide 25: ESG leader
Investor presentation / Strategy update and Strategic plan 2023–2026 ESG leader Net zero Sustainalytics MSCI ESG CDP climate EcoVadis emissions by 19.9 AA A- 78 2040–2050 (Low risk) (Leader) (Leadership) (Platinum) Rank compared Top 12% Top 38%1 B2 Top 3%3 to utility peers Following global initiativ
Slide 26: 2. Context
Investor presentation / Strategy update and Strategic plan 2023–2026 2. Context What drives our strategy? 26 /97
Slide 27: The context (I)
Investor presentation / Strategy update and Strategic plan 2023–2026 The context (I) What drives our strategy? Global climate changes Global contributors EU response and climate action Global warming predictions Top 5 sources of global EU targets. The European Union proposes an based on greenhouse g
Slide 28: The context (II)
Investor presentation / Strategy update and Strategic plan 2023–2026 The context (II) What drives our strategy? Growing EUA prices Phase-out of conventional plants Energy security and independence (EU) 2 Carbon Emission Prices,1 nominal, EUR/tonne EU Fossil fuel based production, TWh European Natura
Slide 29: Demand and supply in Europe
Investor presentation / Strategy update and Strategic plan 2023–2026 Demand and supply in Europe The Baltic states and the Nordic countries will become substantial suppliers of both electricity and hydrogen for Central Europe (incl. Germany) Zone in structual oversupply (excess RES) Zone in structua
Slide 30: 3. Purpose
Investor presentation / Strategy update and Strategic plan 2023–2026 3. Purpose 100% green and secure energy ecosystem 30 /97
Slide 31: Purpose
Investor presentation / Strategy update and Strategic plan 2023–2026 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 a
Slide 32: Purpose-driven priorities
Investor presentation / Strategy update and Strategic plan 2023–2026 Purpose-driven priorities Green Flexible Integrated Sustainable 1 2 3 4 Growing green capacities Creating a flexible system that can Utilising the integrated business model Maximising sustainable value operate on 100% green energy
Slide 33: 4. Business segments
Investor presentation / Strategy update and Strategic plan 2023–2026 4. Business segments Green Generation | Customers & Solutions | Reserve Capacities | Networks 33 /97
Slide 34: Green Generation
Investor presentation / Strategy update and Strategic plan 2023–2026 Green Generation Strategic priorities: Delivering 4–5 GW of installed green and flexible capacities by 2030 with a focus on: • Offshore wind • Onshore hybrid • P2X & storage Focus markets: The Baltic states and Poland. We are also
Slide 35: Significant opportunities in the home market
Investor presentation / Strategy update and Strategic plan 2023–2026 Significant opportunities in the home market Green energy installed capacity evolution Lithuania: Structural electricity deficit in our home market (GW)1 Only ~1/3 of electricity consumption is covered by national generation. The c
Slide 36: Green Generation installed capacity targets
Investor presentation / Strategy update and Strategic plan 2023–2026 Green Generation installed capacity targets 2026: 2.2–2.4 GW1 2030: 4–5 GW1 x4 4–5 GW x2 2.2–2.4 GW 1.2 GW 2022 2026 2030 Operational Target Target 1. Gross installed capacity (includes 100% of capacity which Ignitis Group owns >50
Slide 37: Green Generation Portfolio 5.3 GW
Investor presentation / Strategy update and Strategic plan 2023–2026 Green Generation Portfolio 5.3 GW1 By stage, GW By technology, GW By geography, GW By type, GW 0.1 0.4 0.1 1.2 1.1 1.2 Secured2 capacity 2.2 1.3 2.8 5.3 GW 1.7 GW 5.3 GW 5.3 GW 5.3 GW 0.5 0.7 3.5 0.8 4.2 1.1 Installed capacity Onsh
Slide 38: Focus on technologies for a 100% green and secure energy ecosystem
Investor presentation / Strategy update and Strategic plan 2023–2026 Focus on technologies that can deliver a 100% green and secure energy ecosystem Generation Flexibility Focus on offshore wind and onshore hybrid (wind+solar) Growth in renewables will lead to an increase in the demand for energy st
Slide 39: Offshore wind
Investor presentation / Strategy update and Strategic plan 2023–2026 Offshore wind We aim to secure 2 offshore wind development projects in the Baltics: Potential in the Baltics and Poland - one project in Lithuania (COD until 2030), and - one more project in our home market (COD post 2030) Publicly
Slide 40: Onshore hybrid | Batteries
Investor presentation / Strategy update and Strategic plan 2023–2026 Onshore hybrid Batteries Hybrid technology generation ensures higher utilisation of available grid Enable integration of renewables by facilitating demand management, capacities and a more stable generation profile. helping improve
Slide 41: Pumped-storage hydro
Investor presentation / Strategy update and Strategic plan 2023–2026 Pumped-storage hydro Kruonis PSHP is one of the largest energy storage facilities in Europe Current capacity Expansion by 2026 Capabilities post-2026 900 MW +110 MW 1,010 MW Four operating units (4x225 MW) can New 5th unit (1x110MW
Slide 42: Power-to-X
Investor presentation / Strategy update and Strategic plan 2023–2026 Power-to-X Hydrogen & e-fuels Ignitis group‘s strategy is to pursue the development of a pilot project, leading Electricity to the full commercialization of Power-to-X technologies in the longer term. 1st stage Implementation of a
Slide 43: Strategic partnerships
Investor presentation / Strategy update and Strategic plan 2023–2026 Strategic partnerships We partner with strategic investors to adopt new technologies or enter new markets Partnership with Fortum: adopting WtE technologies Confidential name Partnership with XX: XX Rationale We partnered with Fort
Slide 44: Operating model
Investor presentation / Strategy update and Strategic plan 2023–2026 Operating model 1. 2. 3. 4. 5. 6. 7. Development Structuring power offtake Asset rotation Operation agreements We develop renewable projects by We aim to partner with financial We operate renewable assets for performing site screen
Slide 45: Power offtake capabilities
Investor presentation / Strategy update and Strategic plan 2023–2026 Power offtake capabilities We utilise our supply portfolio to structure offtake agreements and enable Green Generation build-out Offtake capabilities – sizeable uncovered supply portfolio creates a significant competitive advantage
Slide 46: Asset rotation
Investor presentation / Strategy update and Strategic plan 2023–2026 Asset rotation We intend to sell up to 49% of each project to recycle capital and capture value premium Rotation of up to 49% stakes in each project Capital recycling, enabling faster growth Capturing value premium by selling de-ri
Slide 47: Target returns
Investor presentation / Strategy update and Strategic plan 2023–2026 Target returns Target returns Value-creation concept Unlevered Value added 100–350 bps WACC Targeted Typical project Development & Offtake Financing Asset rotation Hybridisation Operations Targeted return return construction struct
Slide 48: Customers & Solutions
Investor presentation / Strategy update and Strategic plan 2023–2026 Customers & Solutions Strategic priorities: 1. Utilising and further expanding customer portfolio to enable Green Generation build–out 2. Building a leading EV public charging network in the Baltics 3. Speeding up the transition fr
Slide 49: Utilising and expanding customer portfolio to enable Green Generation build-out
Investor presentation / Strategy update and Strategic plan 2023–2026 Utilising and further expanding customer portfolio to enable Green Generation build-out Customers 1.4 million The largest customer base B2B & B2C in 2022 in the Baltics Exploiting synergies with the Green Expanding electricity supp
Slide 50: Building a leading EV public charging network in the Baltics
Investor presentation / Strategy update and Strategic plan 2023–2026 Building a leading EV public charging network in the Baltics Targeting to reach ~50% market share of public EV charging infrastructure by 2026 Public EV charging network # charging points >12x >3,000 charging points in 2026 • Utili
Slide 51: Speeding up the transition from gas to power
Investor presentation / Strategy update and Strategic plan 2023–2026 Speeding up the transition from gas to power We aim to optimize our retail gas supply portfolio to ~5.0 TWh Speeding up the transition from gas to power in 2026 and have committed to reduce it further by securing the Proactively pr
Slide 52: Reserve Capacities
Investor presentation / Strategy update and Strategic plan 2023–2026 Reserve Capacities Strategic priorities: 1. Contributing to the security of the energy system Focus markets: Lithuania 52 /97
Slide 53: Utilising reserve capacities for reliability and security of the power system
Investor presentation / Strategy update and Strategic plan 2023–2026 Utilising 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 2022 2023–2030 Providing mainly
Slide 54: Networks
Investor presentation / Strategy update and Strategic plan 2023–2026 Networks Strategic priorities: 1. Resilient and efficient electricity distribution 2. Electricity network expansion and energy market facilitation 3. End-to-end customer experience Focus market: Lithuania 54 /97
Slide 55: Networks regulatory framework
Investor presentation / Strategy update and Strategic plan 2023–2026 Networks regulatory framework The largest network in the Baltics, a natural monopoly for distribution services 1. >99.5%1 of the Lithuanian market Additional Allowed revenue RAB WACC EUR 1.3 bn2 x 4.13%2 + tariff component (28 EURm
Slide 56: Investing to ensure network resilience and enable the energy transition
Investor presentation / Strategy update and Strategic plan 2023–2026 Investing to ensure network resilience and enable the energy transition in Lithuania Investments over 2023–2026, EURm Regulated Asset Base, EURbn ~6% + 8.5–10% CAGR ~1.8–1.9 ~40% EUR 900– ~44% 1,100m 1.3 ~10% Electricity network ex
Slide 57: Focus on electricity network and customers
Investor presentation / Strategy update and Strategic plan 2023–2026 Focus on electricity network and customers Resilient and efficient Electricity network expansion End-to-end electricity distribution and facilitation of energy market development customer experience 1 2 3 Electricity network mainte
Slide 58: Networks Summary
Investor presentation / Strategy update and Strategic plan 2023–2026 Networks Summary Business segment priorities 58 /97
Slide 59: Summary | Strategic priorities by business segment
Investor presentation / Strategy update and Strategic plan 2023–2026 Summary | Strategic priorities by business segment Our purpose is to create a 100% green and secure energy ecosystem for current and future generations Green Generation Reserve capacities Strategic priorities Strategic priorities D
Slide 60: 5. Sustainability
Investor presentation / Strategy update and Strategic plan 2023–2026 5. Sustainability Strategic priorities: decarbonisation, safety, employee experience, diversity and sustainable value creation 60 /97
Slide 61: Our commitment to a sustainable future: 2026 targets
Investor presentation / Strategy update and Strategic plan 2023–2026 Our commitment to a sustainable future: 2026 targets Employee Sustainable Priority Decarbonisation Safety Diversity experience value creation Gender Total Reduction of GHG emissions in Zero Employee overall diversity Sustainable Su
Slide 62: Science-based emissions reduction pathway
Investor presentation / Strategy update and Strategic plan 2023–2026 Science-based emissions reduction pathway Ignitis Group plans to halve its GHG emissions by 2030 – our near-term targets are aligned with a 1.5°C scenario and validated by the Science Based Targets initiative (SBTi). As a result of
Slide 63: 6. People
Investor presentation / Strategy update and Strategic plan 2023–2026 6. People Diverse team of energy smart people united by a common purpose 63 /97
Slide 64: Our People
Investor presentation / Strategy update and Strategic plan 2023–2026 Our People We are a diverse team of energy smart people Our Values united by a common purpose to create a 100% green and secure energy ecosystem for current and future generations RESPONSIBILITY PARTNERSHIP Care. Do. For Earth. Div
Slide 65: People Strategy
Investor presentation / Strategy update and Strategic plan 2023–2026 People Strategy Contributing to Ignitis Group’s purpose and strategic priorities by building a diverse team of energy smart people Strategic Creating a 100% green and Green Flexible Integrated Sustainable priorities secure energy e
Slide 66: 7. Financials
Investor presentation / Strategy update and Strategic plan 2023–2026 7. Financials Target returns, leverage and dividends 66 /97
Slide 67: Investments over 2023–2026
Investor presentation / Strategy update and Strategic plan 2023–2026 Investments over 2023–2026 EUR 2.2–2.8 billion Aligned with EU Taxonomy >85-90% of investments are aligned with EU Taxonomy ~up to 5%1 Green Generation capacity, Regulated Asset Base, GW EURbn 2.2–2.4 ~55% 2.2–2.8 ~40% 1.8–1.9 1,20
Slide 68: Target returns
Investor presentation / Strategy update and Strategic plan 2023–2026 Target returns EBITDA expected to reach EUR 470–550m in 2026, mainly driven by Green Generation Adjusted EBITDA, EURm Adjusted ROCE, % +7.2–10.6% CAGR up to +4.0% CAGR 470 – 550 10.7% 469.3 7.9% 6.5–7.5% 332.7 Green Customers Reser
Slide 69: BBB or above
Investor presentation / Strategy update and Strategic plan 2023–2026 Commitment to a solid investment-grade credit rating We expect to maintain Net debt/Adjusted EBITDA BBB or above credit rating over the 2023–2026 period Targeted level <5.0x 2.1x 2020 2024 2023–2026 2022 average 69 /97
Slide 70: Growing dividends
Investor presentation / Strategy update and Strategic plan 2023–2026 Growing dividends Minimum annual dividends, EURm (declared for the financial year) 6.3–6.9% ≥101.7 Implied dividend ≥98.7 87.6 ≥90.3 ≥93.1 ≥95.8 EURm EURm yield in 2023–2026 EURm EURm EURm EURm Dividend policy We aim to grow our di
Slide 71: Strategic plan 2023–2026
Investor presentation / Strategy update and Strategic plan 2023–2026 Strategic plan 2023–2026 vs. 2022–2025, 2021–2024, 2020–2023 Green Generation capacity Investments Adjusted EBITDA ~10% ~ 31% ~11% 2.2–2.4 GW 470–550 EURm ~ 5% in 2026 in 2026 2.2–2.8 ~12% ~1.4x EURbn 2.0–2.2 GW 370–410 EURm in 202
Slide 72: 8. Highlights
Investor presentation / Strategy update and Strategic plan 2023–2026 8. Highlights 72 /97
Slide 73: Highlights
Investor presentation / Strategy update and Strategic plan 2023–2026 Highlights Our purpose is to create a 100% green and secure energy ecosystem for current and future generations Green Flexible Integrated Sustainable 2026: 2.2–2.4 GW 2030: 4–5 GW EUR 2.2–2.8 bn EUR 470–550m Green Generation capaci
Slide 74: Key investment highlights
Investor presentation / Strategy update and Strategic plan 2023–2026 Key investment highlights The largest listed company in the Baltics Renewables-focused: 4–5 GW of installed green and flexible capacity by 2030 (4x vs current 1.2 GW). Integrated business model: positioned to benefit from the large
Slide 75: Q&A
Investor presentation / 3M 2023 results, Strategy update and Strategic plan 2023–2026 Q&A 75 /97
Slide 76: Supplementary information
Investor presentation / Supplementary information Supplementary information 76 /97
Slide 77: Balance sheet
Investor presentation / Supplementary information Balance sheet EURm 31 Mar 2023 31 Dec 2022 Δ% EURm 31 Mar 2023 31 Dec 2022 Δ% ASSETS EQUITY AND LIABILITIES Non-current assets Equity Intangible assets 170 148 15.0% Issued capital 1,616 1,616 - Property, plant and equipment 2 868 2 811 2.0% Reserves
Slide 78: Income statement and cash flow statement
Investor presentation / Supplementary information Income statement and cash flow statement Income statement Cash flow statement EURm 3M 2023 3M 2022 Δ% EURm 3M 2023 3M 2022 Δ% Revenue from contracts with customers 927 990 (6.3%) Cash flows from operating activities Other income 1 1 (18.8%) Net profi
Slide 79: Green Generation - highlights
Investor presentation / Supplementary information Green Generation - higlights Key financial indicators, EURm 3M 2023 3M 20221 ∆ ∆, % Key operating indicators 31 Mar 2023 31 Dec 2022 ∆ ∆, % Revenue 99.6 120.7 (21.1) (17.5%) Electricity Adjusted EBITDA APM 70.0 70.0 - -% Green Generation Portfolio MW
Slide 80: Networks – highlights
Investor presentation / Supplementary information Networks – highlights Key financial indicators, EURm 3M 2023 3M 2022 ∆ ∆, % Key operating indicators 3M 2023 3M 2022 ∆ ∆, % Revenue 165.6 134.6 31.0 23.0% Electricity Adjusted EBITDA APM 48.7 45.1 3.6 8.0% Electricity distributed TWh 2.60 2.77 (0.18)
Slide 81: Reserve Capacities – highlights
Investor presentation / Supplementary information Reserve Capacities1 – highlights Key financial indicators, EURm 3M 2023 3M 2022 ∆ ∆, % Key operating indicators 3M 2023 3M 2022 ∆ ∆, % Revenue 165.6 134.6 31.0 23.0% Installed electricity capacity MW 1,055 1,055 - -% Adjusted EBITDA APM 48.7 45.1 3.6
Slide 82: Customers & Solutions – highlights
Investor presentation / Supplementary information Customers & Solutions – highlights Key financial indicators, EURm 3M 2023 3M 2022 ∆ ∆, % Key operating indicators 3M 2023 3M 2022 ∆ ∆, % Revenue 681.5 677.4 4.1 0.6% Electricity sales Adjusted EBITDA APM 0.9 (9.7) 10.6 n/a Lithuania TWh 1.45 1.68 (0.
Slide 83: Reconciliations
Investor presentation / Supplementary information Reconciliations Reconciliation of Adjusted EBITDA EURm (45.3) EURm 195.3 149.9 (43.7) (1.6) Reconciliation of Adjusted net profit EURm (38.5) EURm 127.2 9.6 (6.8) 88.7 (45.3) 83 /97
Slide 84: EBITDA and Net profit adjustments
Investor presentation / Supplementary information EBITDA and Net profit adjustments EBITDA adjustments Net profit adjustments EURm EURm 3M 2023 3M 2022 ∆ ∆, % 3M 2023 3M 2022 ∆ ∆, % EBITDA APM 195.3 91.6 103.7 113.2% Net profit 127.2 46.8 80.4 171.8% Adjustments Adjustments Temporary regulatory diff
Slide 85: Debt overview
Investor presentation / Supplementary information Debt overview Debt maturity schedule EURm 300.0 300.0 300.0 223.7 25.6 48.7 44.0 48.6 47.5 46.1 48.2 47.4 47.2 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032+ Loans Bonds Refers to the green bond issue Outstanding amount as of Effective interest r
Slide 86: Industry overview: Electricity
Investor presentation / Supplementary information Industry overview Finland Key drivers of changes in prices 77.6 EUR/MWh (-15.5%) • Stabilised hydro balance in Scandinavia Nord Pool system 62.3 EUR/MWh (-29.8%) 85.2 EUR/MWh (-22.5%) • Healthy natural gas storage levels TTF • Mild winter conditions
Slide 87: Diversified Green Generation Portfolio
Investor presentation / Supplementary information Under construction Capacity Capacity Expected Revenue Proportion of Diversified Green Generation Portfolio Name (MWe) (MWth) COD model secured revenue Mažeikiai WF 63 – Q2 2023 Internal PPA 65% Vilnius CHP’s 73 169 Q3 2023 Merchant 0% biomass unit Si
Slide 88: Generation mix and potential synergies
Investor presentation / Supplementary information Generation mix and potential synergies Electricity generated vs. supplied (TWh) by Ignitis Group in 2022 >7x or 6.6 TWh difference between supply and generation equivalent to ~2.4 GW of Green Generation offtake1. 9 8 7 7.7 TWh 6 5 4 3 2 1 2 1.1 TWh
Slide 89: Hedging levels
Investor presentation / Supplementary information Hedging levels Generation Portfolio Hedge price2, 105 141 136 137 79 EUR/MWh 100% 0 90% -50 80% 70% 72% -100 60% 67% 54% 54% 50% -150 Volumes hedged1, 40% -200 30% 20% 29% -250 10% % 0% -300 2022 2023 2024 2025 2026 1. Generation Portfolio includes t
Slide 90: Strategic plan 2023-2026: disclosure summary
Investor presentation / Supplementary information Strategic plan 2023-2026: disclosure summary Strategic ambitions and financial guidance Our strategic performance KPIs Green generation installed capacity: Total CAPEX, 2023–2026 2.2–2.8 EURbn - 2026 2.2–2.4 GW - of which a sustainable share, 2023–20
Slide 91: Customers & Solutions portfolio
Investor presentation / Supplementary information Customers & Solutions portfolio Electricity supply portfolio, TWh Natural gas supply portfolio, TWh B2B B2C Wholesale Retail B2B Retail B2C +14% +10.8% 1.4 M 12.8 7.71 11.55 6.77 2.86 2.62 Customers end of 2022 5.15 3.86 7.4 6.09 2.91 2.57 2.84 2.55
Slide 92: Reserve Capacities operating assets
Investor presentation / Supplementary information Reserve Capacities ReserveCapacities operating assets operating assets Elektrėnai CCGT Units 7–8 complex Electricity capacity 455 MW 600 MW Energy source Gas Gas Location Lithuania Lithuania Revenue source ~ 29%/71% 100% regulated regulated/merchant1
Slide 93: Networks regulatory framework
Investor presentation / Supplementary information Networks regulatory framework Largest Network in the Baltics, with a natural monopoly in both electricity and 1. gas distribution services >99.5%1 of the Lithuanian market Regulated WACC & regulatory periods Allowed revenue Approved WACC (pre-tax) 1
Slide 94: Science-based emissions reduction targets
Investor presentation / Supplementary information Science-based emissions reduction targets Most of the Group‘s GHG emissions are covered by emission Share of Group‘s GHG emissions covered by targets validated by the SBTi reduction targets validated by the SBTi. We expect that the Millions t CO2-eq
Slide 95: Performance objectives for 2023–2026
Investor presentation / Supplementary information Performance objectives for 2023–2026 Based on the strategic plan for 2023–2026 of the Ignitis group Strategic Priority Objective Weight Entry (70%) Target (100%) (equal to maximum) TSR Performance 40% ≥70%2 ≥100%2 TSR of Ignitis Group vs. average TSR
Slide 96: Glossary
Investor presentation / Supplementary information Glossary Indicator Definition Indicator Definition # Number GRI Global Reporting Initiative % Per cent Gross capacity Total generation capacity, independently from actual/planned share of ownership, if the actual/planned Adjusted EBITDA EBITDA after
Slide 97: More about Ignitis Group
Investor presentation / Supplementary information More about Ignitis Group Reports & presentations IR contacts Sustainability Ainė Riffel-Grinkevičienė Strategy Head of Investor Relations aine.riffel-grinkeviciene@ignitis.lt Financial calendar 2023 29 June 2023 Extraordinary General Meeting of Share