Inter Rao · RUS:IRAO
Inter Rao — Inter RAO UES — Investor Presentation (October 2013)
32 slides from Inter Rao's investor presentation, October 2013
Slide 1: Investor presentation
Investor presentation October 2013 1 1
Slide 2: Disclaimer
Disclaimer This document has been prepared by JSC “INTER RAO UES” (the “Company”). By attending the meeting where the presentation is made, or by reading the presentation slides, you agree to the following. This document does not constitute or form part of any advertisement of securities, any offer
Slide 3: INTER RAO At Glance
INTER RAO At Glance Company Overview Financial Perfomance EBITDA Breakdown⁽³⁾ FY2012 One of the largest national power generators with total installed RUB bn. 2011 2012 electricity capacity of 33.4 GW(1) and electricity output of 148.7 TWh Trading 14% Ranks among the largest European integrated
Slide 4: Asset Management Structure
Asset Management Structure INTER RAO GROUP GENERATION (27,453 MW) SUPPLY FOREIGN ASSETS (5,965 MW) TRADING ENGINEERING LLC “MC INTER RAO – 100% Guaranteed Suppliers: Moldova, Transdniestria – RAO NORDIC OY (Finland) – INTER RAO Engineering (100%) ElectroGeneration” – JSC Mosenergosbyt (50.92%) Repub
Slide 5: CAPEX 2013 - 2016
CAPEX 2013 - 2016 1,167 MW New Capacity commissioned (CDAs)* in 2012-2013, incl.: 4,036 MW New Capacity to be commissioned in 2013-2016, incl.: Urengoyskaya TPS – 460 MW Expected Project Type Total Capacity Total Capacity to be MW Commissioned, MW – Fuel type: gas – Fuel efficiency: 256 g/kWh / CUR*
Slide 6: Key Developments 2012-2013
Key Developments 2012-2013 1 ACQUISITION OF BASHKIR GENERATION AND TRAKYA ELEKTRIK AT THE END OF 2012 POSITIVELY IMPACTED These assets contributed to EBITDA about 3 bln rubles 1H2013 IFRS RESULTS 2 Commission over 1 GW of new generating capacity under EBITDA MARGIN OF GENERATION SEGMENT REACHED 20%
Slide 7: IFRS Financial Results 1H 2013
IFRS Financial Results 1H 2013 7
Slide 8: Evolution of Key Financials – 1H2012/1H2013
Evolution of Key Financials – 1H2012/1H2013 1H2013 1H2012 Change Rub m Revenue 317 743 262 799 20.9% Adjusted EBITDA 21 643 17 065 26.8% EBITDA margin 6.8% 6.5% 0.3% Adjusted EBIT 9 220 9 423 -2.2% Net (loss)/income -13 845 -10 054 - Adjusted net profit⁽³⁾ 10 943 9 010 21.5% FCF -4 971 -17 017 - As
Slide 9: Evolution of Key Financials – Revenue and EBITDA Bridges
Evolution of Key Financials – 1H2012/1H2013 Revenue Bridge EBITDA Bridge RUB m +20.9% RUB m +26.8% 262 799 317 743 17 065 21 643 + 5 159 Other 153 + 17 371 + 8 848 -760 Trading + 3 457 15 678 Supply + 29 717 Foreign Unallocated and assets -673 + 479 eliminations Trading Supply + 70 370 913 2 463 10
Slide 10: Financial Results by Business Segments for the 1H2013
Financial Results by Business Segments for the 1H2013 Generation Foreign Assets RUB m RUB m 22.7% 15.7% 14.6% 85 297 19.9% 18000 90000 15 678 15000 75000 12000 10 519 60000 55 580 9000 45000 6000 30000 2 393 2 463 16 971 3000 15000 8 123 0 1H2012 1H2013 0 1H2012 1H2013 Revenue EBITDA EBITDA margin R
Slide 11: Debt and Liquidity Analysis
Debt and Liquidity Analysis Debt Composition (as of 30.06.2013) Debt Maturity Profile⁽¹⁾ By maturity By currency RUB m USD 45000 Short-term 28% 38% 36000 23 259 27000 18 273 EUR 17 820 5% 18000 Other 9000 Long-term RUB 3% 1 470 62% 64 % 0 Less than 1 year 1-2 years 2-5 years More than 5 years Total
Slide 12: Gradual Operational Improvement
Gradual Operational Improvement 1 Optimize fuel costs Optimize coal consumption, switch to alternative types of coal Negotiate better terms with coal suppliers Optimize loading factor Reduce loading of inefficient plants and increase loading of efficient plants GENERATION Decommission ineffi
Slide 13: Appendix
Appendix 13
Slide 14: 1. Operational Performance Results 1H 2013
1. Operational Performance Results 1H 2013 14
Slide 15: Electricity and Heat Production
Electricity and Heat Production Installed Electric Capacity Installed Heat Capacity Total: Total: 33 326 MW 25 622 Gcal/h 680 5 965 6 176 4 214 Load Factor 11 011 Load Factor 49.9% 21.4% 21 161 1 986 7 757 IRAO – Electricity Generation TGK-11 Bashkir Generation Foreign Generation IRAO – Electricity
Slide 16: Fuel Consumption
Fuel Consumption Fuel Mix Fuel Consumption Breakdown Coal 24% 100% 4% 2% 21% 24% 80% 1% 36% Fuel oil/Petroleum 7% 23% products 60% 9% 1% 40% 65% 55% 54% Gas 20% 75% 0% Gas Coal Fuel oil Total gas consumption for Inter RAO Group reached: 16,281 mcm Total coal consumption for Inter RAO Group reached 1
Slide 17: Electricity Supply
Electricity Supply Electricity Sales to Customers⁽¹⁾ Retail Electricity Sales Breakdown TWh -1.7% 77.5 76.2 22% 80 64.0 64.0 60 10% 40 68% 20 13.5 12.2 0 1H2012 1H2013 Guaranteed suppliers Non-guaranteed suppliers Households and equated groups of customers Loss compensation Other customers Number of
Slide 18: Trading in The Russian Market
Trading in The Russian Market Electricity Sales Breakdown, TWh Electricity Price Dynamics on the Spot Market RUB/MWh Regulated +11% agreements 1000 977 19% 900 877 +15% 800 754 700 655 Free market 600 81% 2 3 2 2 012 2 3 12 3 013 012 012 012 012 013 12 13 012 201 01 201 201 201 201 01 t 20 r 20 r 20
Slide 19: International Activity
International Activity Export/Import Volumes Electricity Spot Prices in 1H2013⁽¹⁾ TWh +14.3% €/MWh 60 55 +5% 14 12.4 10.9 +1.3 12 +0.2 50 44 46 45 43 43 2.6 1.2 Export Import +9% 10 45 44 40 42 39 8 39 37 30 24 24 24 24 26 +11% 6 9.9 23 9,7 4 20 +15% 18 19 19 19 18 17 2 10 0 January Ferbuary March A
Slide 20: 2. IFRS Financial Results 1H 2013
2. IFRS Financial Results 1H 2013 20
Slide 21: Key Segments: Generation
Key Segments: Generation Contribution to Group for 1H2013 Revenue and EBITDA RUB m. Revenue EBITDA 14.6% 85 297 19.9% 90000 75000 29% 27% 55 580 60000 45000 30000 16 971 73% 15000 8 123 71% 0 1H2012 1H2013 Generation Other Revenue EBITDA EBITDA margin Organic growth⁽²⁾ Revenue Contribution by Produc
Slide 22: Key Segments: Trading
Key Segments: Trading Contribution to Group Results for 1H2013 Revenue and EBITDA RUB m Revenue EBITDA 12.6% 8.2% 30000 8% 9% 25 126 21 669 20000 10000 2 724 2 051 92% 91% 0 1H2012 1H2013 Trading Other Revenue EBITDA EBITDA margin Revenue Contribution by Geography⁽¹⁾ RUB m 21 669 25 126 (²) +1 542 K
Slide 23: Key Segments: Supply
Key Segments: Supply Contribution to Group results for 1H2013 Revenue and EBITDA RUB m Revenue EBITDA 2.7% 1.1% 200000 191 489 174 118 9% 40% 150000 100000 50000 60% 4 627 2 102 91% 0 1H2012 1H2013 Supply Other Revenue EBITDA EBITDA margin Revenue Contribution by Company ⁽¹⁾ EBITDA Contribution by C
Slide 24: Key Segments: Foreign Assets
Key Segments: Foreign Assets Contribution to Group for 1H2013 Revenue and EBITDA RUB m Revenue EBITDA 22.7% 15.7% 18000 15 678 5% 10% 15000 12000 10 519 9000 6000 2 393 2 463 3000 90% 95% 0 1H2012 1H2013 Foreign assets Other Revenue EBITDA EBITDA margin EBITDA Contribution by Geography EBITDA Contri
Slide 25: Consolidated Operating Expenses
Consolidated Operating Expenses OPEX Breakdown Comments Other⁽¹⁾ In 1H2013 Inter RAO Group’s operating expenses increased by RUB 58 399 m (+21%) in 15% comparison with 1H2012 Employee benefit Purchased expenses Key OPEX change drivers: electricity and 6% capacity Fuel expenses increased by RUB
Slide 26: 3. IFRS Financial Results 2012
3. IFRS Financial Results 2012 26
Slide 27: Financial Performance FY2012 (1/2)
Financial Performance FY2012 (1/2) 2012 2011 Change RUB m Revenue 556 189 536 244 3,7% Adjusted EBITDA 26 493 41 657 -36,4% Adjusted EBIT 9 897 28 641 -65,4% Net (loss)/income -22 355 41 457 - Adjusted net profit ⁽³⁾ 5 091 12 852 -60.4% FCF -41 822 24 113 - 31.12.2012 31.12.2011 Change RUB m Total A
Slide 28: Financial Performance FY2012 (2/2)
Financial Performance FY2012 (2/2) Revenue bridge EBITDA bridge⁽¹⁾ RUB m +3.7% RUB m -32.4% 536,244 556,189 45,081 30,469 Trading +31 177 Supply +2 033 +465 1 117 652 -10 240 -3 490 International Other 22 837 Generation 20 804 Generation Trading 5 227 Supply -2 633 -864 International 16 907 +149 358
Slide 29: Debt and Liquidity Analysis 2012
Debt and Liquidity Analysis 2012 Debt Composition (as of 31.12.2012) Debt Maturity Profile ⁽¹⁾ By maturity By Currency RUB m 45000 Short - term USD 25% 26% 34 553 36000 27000 EUR 6% 18000 15 034 7 501 Other 9000 Long - term RUB 2 323 65 % 3% 75% 0 Less than 1 year Between 1 and 2 Between 2 and 5 Ove
Slide 30: On Track to Deliver Strategy
On Track to Deliver Strategy • Organic growth through construction of new electricity generation capacity in Russia and M&A • Selective expansion into target foreign markets through M&A, developing greenfield STRATEGIC • Raising efficiency of existing assets, getting new cash flow from Capacity Deli
Slide 31: IR Contacts
IR Contacts Irina Makarenko Director for Investor Relations tel.: +7 (495) 664 88 40 (ext 2008) e-mail: makarenko_ia@interrao.ru Larisa Sadovnikova Investor Relations tel.: +7 (495) 664 88 40 (ext 2068) e-mail: sadovnikova_lv@interrao.ru Alexander Smirnov Investor Relations tel.: +7 (495) 664 88 40
Slide 32: Thank You For Your Attention!
THANK YOU FOR YOUR ATTENTION! 32