Societatea Energetica Electrica S.A. · BVB:EL

Societatea Energetica Electrica — Q1 2015 Earnings Presentation

31 slides from Societatea Energetica Electrica's earnings presentation, May 21, 2015

  1. Slide 1: Presentation of Q1 2015 Results

    Presentation of Q1 2015 Results Bucharest, 21 May 2015

  2. Slide 2: Main events

    Main events  The 2014 financial statements were approved by the Shareholders on 27 April 2015  27 April 2015 – third GMS after the IPO – main topics on the agenda: approval of the 2014 financial statements, approval of the profit distribution, approval of the 2015 income and expenses budgets, reje

  3. Slide 3: Main events (Cont'd)

    Main events (Cont’d)  Electrica continued the strict monitoring and reduction of the costs, in order to achieve the targets imposed by the regulator for the regulated activity, as well as to increase the efficiency in the competitive area.  ANRE Order nr. 112 for modifying the methodology was publ

  4. Slide 4: Main events (Cont'd)

    Main events (Cont’d)  End of July 2014 – Electrica received an invitation to participate in the disposal process for Enel’s distribution and supply assets in Romania  22 August 2014 – The ordinance preventing companies where the state owns more than 33% to acquire stakes/shares in other companies

  5. Slide 5: Agenda

    Agenda I. Executive Summary II. Distribution overview III. Supply overview IV. Corporate Governance 5

  6. Slide 6: Electrica at a glance

    Electrica at a glance Executive summary Electrica Group  Market leader in distribution and supply of electricity in Romania  Distribution: Owns 78% in three subsidiaries operating on the electricity distribution market on a concession ending in 2054 (option to extend by 24.5 years) and 100% in a s

  7. Slide 7: Electrica Significant Subsidiaries

    Electrica Significant Subsidiaries Executive summary 22% 78% 100% Electrica Furnizare (EF) Electrica Distributie Electrica Distributie Electrica Distributie Electrica Serv (ES)  3.6mn consumers1 Transilvania Nord (EDTN) Transilvania Sud (EDTS) Muntenia Nord (EDMN)  Revenues3: RON 82mn  Market sha

  8. Slide 8: Leading Player in Distribution and Supply

    Leading Player in Distribution and Supply Executive summary Distribution Supply Volumes Distributed in 2013 Volumes Supplied in 2014 15% EDMN Electrica 21% EDTS Others 13% EDTN 41 TWh1 44.5 TWh Others 59% 11% 79% Electrica: 39% Area Covered by Distribution Network Regulated Market Sales in 2014 12%

  9. Slide 9: Background and Basis of Preparation for the Financials

    Background and Basis of Preparation for the Financials Executive summary  Historical consolidated financial statements prepared in accordance with International Financial Background Reporting Standards as endorsed by the European Union (IFRS-EU)  The presentation currency is Romanian New Leu (RON)

  10. Slide 10: Summary Consolidated Financials

    Summary Consolidated Financials Executive summary Revenues Strong Adjusted EBITDA Growth and Margin Performance Revenues (RON mn) Adjusted EBITDA (RON mn) and Adjusted EBITDA Margin (%) 17% 17% 17% 12% 20% 5,383 5,044 414 10% 272 870 0% 649 -10% 1,340 -20% 4,969 4,772 1,266 230 -30% 92 91 211 1,174

  11. Slide 11: Working Capital and Current Assets

    Working Capital and Current Assets Executive summary Net Working Capital (2013–2015) (RON mn) Trade Receivables Inventories Trade Payables Net Working Capital (1) 34 28 582 470 24 32 455 1,088 1,018 555 781 852 540 577 429 250 2013 Q1 2014 2014 Q1 2015 Net Current Assets (2013–2015) (RON mn) Current

  12. Slide 12: IPO proceeds

    IPO proceeds Executive summary  The Company’s strategy was to place the IPO money through the Underwriter banks, member of the Syndicate, in risk-free titles and deposits, on short-term, until the new Board of Directors will be able to take medium long term decisions Cashing from IPO: 4 July Cashin

  13. Slide 13: Agenda

    Agenda I. Executive Summary II. Distribution overview III. Supply overview IV. Corporate Governance 13

  14. Slide 14: Distribution Market Overview

    Distribution Market Overview Distribution overview Key Facts Romanian Electricity Distribution Map  Electricity distribution in Romania is currently controlled by eight licensed electricity distribution companies EDTN EMD  Each company is responsible for the exclusive distribution of electricity w

  15. Slide 15: Distribution Highlights

    Distribution Highlights Distribution segment overview  Q1 2015 Regulated asset base (RAB) of RON 4,230mn  191,007 km of voltage lines (9,313 km HV; 45,828 km MV; 135,867 km LV) (2014)  Area of operation: 97,996 km2, 40.8% of Romania’s territory  3.56 mn users (Q1 2015)  4.3 TWh of electricity d

  16. Slide 16: EDTS Overview

    EDTS Overview Distribution segment overview Overview  Electrica Distributie Transilvania Sud (EDTS) is a Brasov based distribution subsidiary of Electrica  National market share (Volume): 13% (2013)  Area covered: 34,071 km2 (Q1 2015)  Users: 1.1mn (Q1 2015)  Financials commentary  Slight reve

  17. Slide 17: EDTS Overview (Cont'd)

    EDTS Overview (Cont’d) Distribution segment overview Costs due to Network Losses Network Losses Network Losses (RON mn) (GWh) (%) 14.96% 14.59% 813 173 785 12.20% 163 11.70% 11.70% 11.76% 11.40% 9.50% 56 55 258 267 Reg. Realised Reg. Realised Reg. Realised Reg. Realised 2013 Q1 2014 2014 Q1 2015 201

  18. Slide 18: EDTN Overview

    EDTN Overview Distribution segment overview Overview  Electrica Distributie Transilvania Nord (EDTN) is a Cluj-Napoca based distribution subsidiary of Electrica  National market share (Volume): 11% (2013)  Area covered: 34,160 km2 (Q1 2015)  Users: 1.2mn (Q1 2015)  Financials commentary  Attra

  19. Slide 19: EDTN Overview (Cont'd)

    EDTN Overview (Cont’d) Distribution segment overview Costs due to Network Losses Network Losses Network Losses (RON mn) (GWh) (%) 13.71% 138 623 621 12.33% 129 11.60% 11.70% 11.70% 11.34% 11.43% 9.50% 205 40 173 36 Reg. Realised Reg. Realised Reg. Realised Reg. Realised 2013 Q1 2014 2014 Q1 2015 201

  20. Slide 20: EDMN Overview

    EDMN Overview Distribution segment overview Overview  Electrica Distributie Muntenia Nord (EDMN) is a Ploiesti based distribution subsidiary of Electrica  National market share (Volume): 15% (2013)  Area covered: 29,765 km2 (Q1 2015)  Users: 1.3mn (Q1 2015 )  Financials commentary  Slight decr

  21. Slide 21: EDMN Overview (Cont'd)

    EDMN Overview (Cont’d) Distribution segment overview Costs due to Network Losses Network Losses Network Losses (RON mn) (GWh) (%) 210 979 200 939 15.71% 14.84% 12.20% 12.38% 10.78% 10.78% 10.44% 9.50% 64 65 320 326 Reg. Realised Reg. Realised Reg. Realised Reg. Realised 2013 Q1 2014 2014 Q1 2015 201

  22. Slide 22: Electrica Serv Financials

    Electrica Serv Financials Distribution segment overview Description Revenues (RON mn)  Electrica Serv, a wholly-owned subsidiary of Electrica, provides equipment maintenance, repair and other ancillary services to EDMN, EDTN and EDTS 396 395  As part of its growth strategy, Electrica Serv intends

  23. Slide 23: Agenda

    Agenda I. Executive Summary II. Distribution overview III. Supply overview IV. Corporate Governance 23

  24. Slide 24: Supply market overview

    Supply market overview Supply overview Key Facts Market Share All Users 2014  Supply market consists of Regulated and Competitive segments: Electrica Furnizare 20.8%  The regulated segment comprises 5 companies, integrated Others (<4% individually) within the same group as the corresponding distri

  25. Slide 25: Supply business overview

    Supply business overview Supply overview Leading Market Position (2014) Regulated Market Competitive Market EF Tinmar Ind 38% 12% Electrica Furnizare Others 12% 40% Alro 7% CEZ E.On 12% 6% Enel OMV Petrom 39% 4% Repower E.ON Cez Vanzare 5% Arelco Power Enel Energie 5% 11% 4% 5% Volume of Electricity

  26. Slide 26: Supply Segment Overview

    Supply Segment Overview Supply overview Overview Consumers  Electrica Furnizare is the supply company of Electrica Consumers by Volume Consumers by Revenues  Market share: 21% Regulated Regulated Competitive Household,  Consumers: 3.59mn (Q1 2015) Competitive Household, 47% Eligible, 50% Eligible

  27. Slide 27: Agenda

    Agenda I. Executive Summary II. Distribution overview III. Supply overview IV. Corporate Governance 27

  28. Slide 28: Shareholder Structure

    Shareholder Structure Free float is 51.2% after the IPO, with the Romanian State retaining the rest. Before the IPO After the IPO – Structure as of March 31st 2015 5.53% 7.26% 100% 48.78% 38.43% Romanian State Other Shareholders Romanian State Legal Person Shareholders BNY MELLON DRS - London Stock

  29. Slide 29: Current Structure of the Board of Directors and its Committees

    Current Structure of the Board of Directors and its Committees  Victor Cionga – Chairman  Arielle Malard de Rothschild Board  Michael Boersma Composition  Victor Vlad Grigorescu  Cristian Busu Note: The bios of the Board members may be found on Electrica’s website  All five board members are n

  30. Slide 30: 2015 Financial Calendar

    2015 Financial Calendar  February 16 Publication of the annual preliminary results - 2014  April 27 General Meeting of Shareholders for the approval of the 2014 annual financial results  April 28 Release of 2014 Annual Report - http://www.electrica.ro/en/investor-relations/  April 30 Investor an

  31. Slide 31: Q&A

    Q&A ir@electrica.ro http://www.electrica.ro/en/investor-relations 31

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