Societatea Energetica Electrica S.a. · BVB:EL

Societatea Energetica Electrica — Electrica — H1 2018 Earnings Presentation

33 slides from Societatea Energetica Electrica's earnings presentation, Aug 14, 2018

  1. Slide 1: Presentation of H1 2018 Results

    Presentation of H1 2018 Results Bucharest, 14 August 2018 1

  2. Slide 2: Content

    Content  Key Group Information  Distribution Segment Overview  Supply Segment Overview  Main Corporate Events  Initiatives launched and 2018 plans  Appendix 2

  3. Slide 3: Summary Consolidated Financials

    Summary Consolidated Financials Key Group Information Revenues EBITDA Growth and Margin Performance (RON mn) EBITDA (RON mn) and EBITDA Margin (%) 5,518 5,603 17% 18% 401 373 11% 8% 2,675 2,654 5,117 183 5,230 155 960 601 2,492 2,499 477 214 2016 H1 2017 2017 H1 2018 2016 H1 2017 2017 H1 2018 Revenu

  4. Slide 4: Working Capital and Current Assets

    Working Capital and Current Assets Key Group Information Net Working Capital (2016 – H1 2018) (RON mn) Trade Receivables Inventories Trade Payables Net Working Capital 1 23 22 25 25 689 474 723 510 778 804 678 682 192 233 78 137 2016 H1 2017 2017 H1 2018 Net Current Assets (2016 – H1 2018) (RON mn)

  5. Slide 5: Consolidated EBITDA and Net Result waterfall

    Key Group Information Consolidated EBITDA and Net Result waterfall The Net profit represents approx. 83% of the budgeted amount for 2018, while EBITDA (mn RON) EBITDA is achieved in a degree of 66%. The evolution of the main indicators, compared to the same period of the previous year, is presented

  6. Slide 6: Distribution Highlights

    Distribution Highlights Distribution segment overview  H1 2018 Regulated asset base (RAB) of RON 4.8 billion (estimated);  197,257 km of voltage lines (7,591 km HV; 45,529 km MV; 144,138 km LV) (H1 2018);  Area of operation: 97,196 km2, 40.7% of Romania’s territory;  3.72 million users (H1 2018)

  7. Slide 7: SDTN

    SDTN Distribution segment overview Overview  Societatea de Distributie a Energiei Electrice Transilvania Nord (SDTN) is a Cluj-Napoca based distribution subsidiary of Electrica;  National market share (volume): 11.9% (2017 ANRE Report);  Area covered: 34,162 km2;  Users: 1.27 mn (H1 2018);  Key

  8. Slide 8: SDTN (Cont'd)

    SDTN (Cont’d) Distribution segment overview Costs due to Network Losses Network Losses Network Losses (RON mn) (GWh) (%) 640 10.96% 10.75% 163 630 10.43% 10.55% 10.43% 10.34% 10.20% 9.86% 136 87 320 321 77 Reg. Realised Reg. Realised Reg. Realised Reg. Realised 2016 H1 2017 2017 H1 2018 2016 H1 2017

  9. Slide 9: SDTS

    Distribution segment overview SDTS Overview  Societatea de Distributie a Energiei Electrice Transilvania Sud (SDTS) is a Brasov based distribution subsidiary of Electrica;  National market share (volume): 13.8% (2017 ANRE Report);  Area covered: 34,072 km2;  Users: 1.14 mn (H1 2018);  Key finan

  10. Slide 10: SDTS (Cont'd)

    SDTS (Cont’d) Distribution segment overview Costs due to Network Losses Network Losses Network Losses (RON mn) (GWh) (%) 188 10.97% 775 766 163 10.74% 10.55% 10.57% 10.55% 101 10.19% 10.17% 10.20% 94 392 382 Reg. Realised Reg. Realised Reg. Realised Reg. Realised 2016 H1 2017 2017 H1 2018 2016 H1 20

  11. Slide 11: SDMN

    Distribution segment overview SDMN Overview  Societatea de Distributie a Energiei Electrice Muntenia Nord (SDMN) is a Ploiesti based distribution subsidiary of Electrica;  National market share (volume): 14.6% (2017 ANRE Report);  Area covered: 28,962 km2;  Users: 1.32 mn (H1 2018);  Key financ

  12. Slide 12: SDMN (Cont'd)

    SDMN (Cont’d) Distribution segment overview Costs due to Network Losses Network Losses Network Losses (RON mn) (GWh) (%) 230 932 901 201 11.42% 11.06% 11.31% 11.43% 10.03% 9.55% 9.55% 9.16% 124 114 463 438 Reg. Realised Reg. Realised Reg. Realised Reg. Realised 2016 H1 2017 2017 H1 2018 2016 H1 2017

  13. Slide 13: Electrica Serv

    Distribution segment overview Electrica Serv Revenues Description (RON mn) 365 359  Electrica Serv, a wholly-owned subsidiary of Electrica, provides ancillary services to electricity distribution companies: SDMN, SDTN and SDTS;  On 31 October 2017, the business transfer agreements between each of

  14. Slide 14: Supply market

    Supply segment overview Supply market Key Facts Overall Market Share 4M 2018 Electrica Furnizare  Supply market consists of Regulated and Competitive segments: 17.70% • The regulated segment comprises 5 last resort suppliers, integrated within the same group as the corresponding distribution operat

  15. Slide 15: Supply segment

    Supply segment overview Supply segment Overview Coverage  Electrica Furnizare is the supply company of Electrica;  Market share: 17.7% (April 2018 ANRE Report);  Consumers: 3.55 mn (H1 2018);  Key Financial Information: Electrica Furnizare • Significant increase in EBITDA mainly due to: Competit

  16. Slide 16: Supply business overview

    Supply business overview Supply segment overview Volume of Electricity Supplied on Retail Market Number of Consumers (TWh) Consumers (‘000’s) Regulated Competitive Regulated Competitive 10.6 9.2 3,600 3,588 3,577 3,551 250 187 215 234 5.4 4.2 4.7 4.3 3,350 3,401 3,362 3,318 2.1 1.8 5.2 5.0 2.6 2.5 2

  17. Slide 17: Main corporate events in H1 2018 and up to date

    Main Corporate Events Main corporate events in H1 2018 and up to date  General Meetings of Shareholders:  Main resolutions of the Ordinary General Meetings of Shareholders dated 9 February 2018:  Approval of the remuneration policy of the members of the Board of Directors of the Company and its a

  18. Slide 18: Main corporate events in H1 2018 and up to date

    Main Corporate Events Main corporate events in H1 2018 and up to date  Main Board of Directors decisions in H1 2018 and up to date:  Board of Directors:  The appointment of Ms. Elena Doina Dascalu as Board of Directors Chair for a one year mandate;  The approval of the committees’ composition an

  19. Slide 19: Regulatory changes

    Main Corporate Events Regulatory changes Main proposals for amendment RP4:  ANRE started the process of revising the Distribution Tariffs Methodology by submitting in public debate.  The first draft of the proposals was published on 23 April - analysis was performed and observations sent on 23 May

  20. Slide 20: Multiple initiatives launched at Group level, targeting key areas

    Initiatives launched and 2018 plans Multiple initiatives launched at Group level, targeting key areas that bring value to the company, its clients and shareholders Grup wide initiatives The aim of the measures planned for 2018 is to ensure a stable dividend yield, considering the changes in regulato

  21. Slide 21: DSO area optimization measures in place, Supply and energy services prepare

    Initiatives launched and 2018 plans DSO area optimization measures in place, Supply and energy services area prepare for more dynamic market enviornment Distribution • Historically largest investment plan in DSOs in Romania: investments to be The Apollo Program for transforming the commissioned of a

  22. Slide 22: The structure of Electrica Group

    Appendix The structure of Electrica Group 99.999% 100% Electrica Furnizare (EF) Societatea de Distributie a Societatea de Distributie a Societatea de Distributie a Electrica Serv (ES) Energiei Electrice Energiei Electrice Energiei Electrice Muntenia  3.55 mn consumers1  Revenues3: RON 80 mn Transi

  23. Slide 23: Background and Basis of Preparation for the Financials

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

  24. Slide 24: Leading Player in Distribution and Supply

    Appendix Leading Player in Distribution and Supply Distribution Supply Volumes Distributed in 2017 Volumes Supplied in 2017 14% Electrica Furnizare 19% SDMN Others SDTS 14% SDTN 44.3 TWh 48.4 TWh Others 60% 12% 81% Electrica: 40.3% Area Covered by Distribution Network Regulated Market Sales in 2017

  25. Slide 25: Current Structure of the Board of Directors and its Committees

    Appendix Current Structure of the Board of Directors and its Committees  Ms. Elena Doina Dascalu - Chair  Mr. Gicu Iorga  Ms. Ramona Ungur Board of Directors  Mr. Valentin Radu Composition  Ms. Arielle Malard de Rothschild  Mr. Bogdan George Iliescu  Mr. Willem Schoeber  All board members ar

  26. Slide 26: Regulatory changes (Cont'd)

    Appendix Regulatory changes (Cont’d) Electricity Distribution: Regulated Revenue and Tariff Calculation 1 2 3 4 5 6 7 8 7 Allowed Revenue Cost of Return Reactive& Allowed Working Tariff OPEX Network Dep. On 50%profit Revenue Capital Losses RAB other act. 9 Projected Volumes . 1 5  Predicted based o

  27. Slide 27: Shareholder structure

    Appendix Shareholder structure Free float is 51.2% after the IPO, with the Romanian State holding the rest of 48.8% Before the IPO Shareholder Structure as of 30 June 2018 5.25% 100% 35.56% 48.78% 6.92% 3.49% Romanian State Romanian State EBRD BNY MELLON DRS - London Stock Exchange Other legal perso

  28. Slide 28: Dividend distribution

    Appendix Dividend distribution Gross dividend distribution (FY 2014-2017) (Mn RON) Gross dividend per share (RON) and Dividend yield (%) 291.6 6.9% 7.3% 244.7 251.4 245.4 5.2% 6.1% 0.8600 0.7217 0.7415 0.7237 2014 2015 2016 2017 2014 2015 2016 2017 Dividend payout ratio (FY 2014 – 2017) 100% 100% 10

  29. Slide 29: Monthly volume and medium price of Electrica's shares and GDRs

    Appendix Monthly volume and medium price of Electrica’s shares and GDRs 10,000,000 15.00 9,000,000 14.00 8,000,000 13.00 7,000,000 12.00 6,000,000 11.00 5,000,000 10.00 4,000,000 9.00 3,000,000 2,000,000 8.00 1,000,000 7.00 - 6.00 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17

  30. Slide 30: Comparative evolution with BSE indices

    Appendix Comparative evolution with BSE indices (Jan 2017– 3 Aug 2018) % 150.00 130.00 110.00 90.00 70.00 50.00 EL (BSE) Performance BET Performance BET-FI Performance BET-NG Performance BET-XT Performance ELSA (LSE) Performance 30

  31. Slide 31: Electrica adjusted closing price vs BET-TR

    Appendix Electrica adjusted* closing price vs BET-TR (Jan 2017 – 3 August 2018) 60.00 50.00 40.00 EL: -12.0% BET-TR: 34.6% 30.00 20.00 10.00 0.00 -10.00 -20.00 -30.00 Electrica adjusted price with dividends BET-TR Source: Company data; BSE * Adjusted at each ex-date with the amount of the annual div

  32. Slide 32: 2018 Financial Calendar

    Appendix 2018 Financial Calendar  15 February Publication of the annual stand-alone preliminary results - 2017  16 March Investor and analyst teleconference for 2017 consolidated financial results  27 April General Meeting of Shareholders for the approval of the 2017 annual financial results  30

  33. Slide 33: Investor Relations & Disclaimer

    Anexe Investor Relations & Disclaimer • Email: ir@electrica.ro • Web: https://www.electrica.ro/en/investors/ Investor • Tel: 021.208.50.35 Relations • Fax: 021.208.59.98 • Address: 9 Grigore Alexandrescu Str., District 1, Bucharest, 010621 This document was prepared by Electrica for the presentation

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