Societatea Energetica Electrica S.a. · BVB:EL
Societatea Energetica Electrica — H1 2015 Earnings Presentation
31 slides from Societatea Energetica Electrica's earnings presentation, Aug 20, 2015
Slide 1: Presentation of H1 2015 Results
Presentation of H1 2015 Results Bucharest, 20 August 2015
Slide 2: Main events
Main events • Upcoming GMS on 9 September 2015 – main items: new framework - management agreement for directors, management plan of the Board of Directors, targets and performance criteria for directors • Main resolutions of the 2015 General Meetings of Shareholders (9 July 2015 and 27 April 2015):
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. • Distribution ANRE Order nr. 112 for modifying the methodo
Slide 4: Main events (Cont'd)
Main events (Cont’d) • GMS approved on 27 April 2015 the distribution of the 2014 dividends: ~85% of the consolidated group share, in Dividends the amount of RON 244.7mn: dividend payout: RON 0.7217 gross per share, ex date: 9 July 2015, payout date: 15 July 2015 • End of July 2014 – Electrica recei
Slide 5: Agenda
Agenda I. Executive Summary II. Distribution overview III. Supply overview IV. Corporate Governance 5
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
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) • 3.6 mn consumers1 Transilvania Nord (EDTN) Transilvania Sud (EDTS) Muntenia Nord (EDMN) • Revenues3: RON 175 mn • Market
Slide 8: Leading Player in Distribution and Supply
Leading Player in Distribution and Supply Executive summary Distribution Supply Volumes Distributed in 2014 Volumes Supplied in 2014 15% EDMN Electrica 21% EDTS Others 13% EDTN 40.5 TWh1 44.5 TWh Others 60% 12% 79% Electrica: 39.8% Area Covered by Distribution Network Regulated Market Sales in 2014
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 Reporting Background Standards as endorsed by the European Union (IFRS-EU) • The presentation currency is Romanian New Leu (RON)
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 (%) 18% 19% 17% 20% 5,383 5,044 414 12% 15% 272 2,595 870 2,414 10% 649 490 5% 4,969 150 4,772 168 440 0% 2,264 2,427
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) 34 582 24 28 23 1,088 425 555 494 743 781 769 540 346 298 250 2013 H1 2014 2014 H1 2015 Net Current Assets (2013–2015) (RON mn) Current A
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
Slide 13: Agenda
Agenda I. Executive Summary II. Distribution overview III. Supply overview IV. Corporate Governance 13
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
Slide 15: Distribution Highlights
Distribution Highlights Distribution segment overview • H1 2015 Regulated asset base (RAB) of RON 4,163 mn • 191,296 km of voltage lines (9,312 km HV; 45,873 km MV; 136,111 km LV) (H1 2015) • Area of operation: 97,996 km2, 40.8% of Romania’s territory • 3.63 mn users (H1 2015) • 8.5 TWh of electrici
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): 13.2% (2014 ANRE Report) • Area covered: 34,071 km2 • Users: 1.1 mn (H1 2015) • Financials commentary • Modera
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) (%) 12.60% 12.20% 11.70% 11.70% 11.76% 11.79% 813 11.40% 173 785 163 9.50% 416 414 86 83 Reg. Realised Reg. Realised Reg. Realised Reg. Realised 2013 H1 2014 2014 H1 2015 201
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): 11.6% (2014 ANRE Report) • Area covered: 34,160 km2 • Users: 1.2 mn (H1 2015) • Financials commentary •
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) (%) 11.60% 11.70% 11.40% 11.70% 11.34% 11.48% 11.62% 138 623 621 129 9.50% 328 67 306 62 Reg. Realised Reg. Realised Reg. Realised Reg. Realised 2013 H1 2014 2014 H1 2015 201
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% (2014 ANRE Report) • Area covered: 29,765 km2 • Users: 1.3 mn (H1 2015 ) • Financials commentary • Slight i
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 13.10% 200 979 12.20% 12.38% 12.15% 939 10.78% 10.78% 10.44% 9.50% 101 98 499 499 Reg. Realised Reg. Realised Reg. Realised Reg. Realised 2013 H1 2014 2014 H1 2015 20
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
Slide 23: Agenda
Agenda I. Executive Summary II. Distribution overview III. Supply overview IV. Corporate Governance 23
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
Slide 25: Supply business overview
Supply business overview Supply overview Volume of Electricity Supplied on Retail Market Growing Number of Consumers (TWh) Consumers (‘000’s) Competitive Regulated Regulated Competitive 3,566 3,573 3,590 3,598 9.70 74 9.00 34 59 83 2.80 3.70 4.56 4.85 3,532 3,514 3,516 3,515 1.53 2.14 6.20 6.00 3.03
Slide 26: Supply Segment Overview
Supply Segment Overview Supply overview Overview Coverage • Electrica Furnizare is the supply company of Electrica Electrica Furnizare • Market share: 21% (2014 ANRE Report) • Consumers: 3.60 mn (H1 2015) Competitive Market Regulated Market • Financials commentary: • Significant decrease in EBITDA a
Slide 27: Agenda
Agenda I. Executive Summary II. Distribution overview III. Supply overview IV. Corporate Governance 27
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 August 13th 2015 5.14% 100% 31.30% 48.78% 6.12% 8.66% Romanian State Romanian State Other Shareholders EBRD BNY MELLON DRS - London Stock Exchange Legal
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 Grigorescu • Cristian Busu Note: The bios of the Board members may be found on Electrica’s website • All five board members are non-ex
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
Slide 31: Q&A
Q&A ir@electrica.ro http://www.electrica.ro/en/investor-relations 31
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