Rusgidro · RUS:HYDR
Rusgidro — RusHydro — ATON Utilities Day Conference 2020
31 slides from Rusgidro's conference presentation, Sep 16, 2020
Slide 1: RusHydro Group Investor presentation
RusHydro Group Investor presentation ATON Utilities Day Conference September 16, 2020
Slide 2: Disclaimer
Disclaimer The following applies to this presentation (“Presentation”), and you are therefore advised to read this important notice carefully before reading, accessing or making any other use of this Presentation. This Presentation and the information contained herein are strictly confidential to th
Slide 3: Presenting Team
Presenting Team Andrey Kazachenkov Member of the Management Board, First Deputy CEO Larisa Kabanova Dmitry Yakovlev Head of Corporate Investor Relations Finance Manager 3
Slide 4: Company overview
Company overview 4
Slide 5: Extensive infrastructure assets portfolio across the country
Extensive infrastructure assets portfolio across the country Key facts 73 34 4 5 >100,000 km c.4,000 km hydro power Major fossil fuel types of non-hydro retail of electricity grids of heat distribution plants plants renewables companies networks Location of key assets European Russia Siberia Far Eas
Slide 6: Geography of key assets. Benefitting from diversification
Geography of key assets. Benefitting from diversification Key highlights Installed capacity breakdown by regions(1) 81% of RusHydro’s installed capacity is represented by Top-5 power plants (MW) hydro power plants (HPPs) – a green low cost, high 6,400 marginal, emissions-free, sustainable energy s
Slide 7: Corporate governance. Solid state owned company with sound corporate governance
Corporate governance. Solid state owned company with sound corporate governance Key highlights Shareholder structure(1) The Russian government directly owns 61.7% of RusHydro. A special Presidential decree stipulates minimum Other shareholders government's ownership at 60.5%. 25.3% RusHydro’s sh
Slide 8: ESG profile. Direct focus on sustainable development goals
ESG profile. Direct focus on sustainable development goals RusHydro remains the leader in renewable electricity production (hydro, solar, wind, geothermal) with 4/5 of installed capacity (31 GW) coming from emission-free generating facilities Ongoing improvement of ESG aspects RusHydro is a particip
Slide 9: RusHydro – a socially responsible company
ESG profile. RusHydro – a socially responsible company Hydropower plants Thermal power plants 1. Boguchanskaya HPP 38. Amurskaya CHPP-1 2. Bureyskaya HPP 3. Upper Volga HPP cascade 4. Vilyuiskiye HPP cascade Supports 19 environmentally sensitive areas 39. Anadyrskaya gas CHPP 40. Anadyrskaya CHPP 41
Slide 10: RusHydro: yesterday and today
RusHydro: yesterday and today 2015 1H 2020 38.7 Installed electric capacity, GW 38.0(1) 127.4 Electricity generation, TWh 152.0(2) 73 114.4(2) EBITDA, RUB bn/ EBITDA margin, % 20% 26.9% (2) 14.9(3) 42.8(4) Dividend, RUB bn/ Dividend per share, kopecks 1.34 (3) 3.31(4) 222 Total debt, RUB bn / 213.0(
Slide 11: Key highlights and operating results
Key highlights and operating results 11
Slide 12: Key figures & highlights of 1H 2020
Key figures & highlights of 1H 2020 RusHydro has managed to deliver record-high financial results benefiting from operational efficiency growth, sustainability of our business model and commissioning of new capacities 77.7 218.1 67.7 31.0% 114.4 46.8 110.4 0.96x TWh RUB bn RUB bn EBITDA margin RUB b
Slide 13: 1H 2020 operating results: Stellar performance, no volume risks foreseen
1H 2020 operating results Stellar performance, no volume risks foreseen • The reservoirs of the Volga-Kama cascade were filled to the maximum level following strong water inflows • Production in July – at the normal level (please see slide 6) • No volume risks foreseen going forward 68.9 TWh (+21.
Slide 14: Stable production expected in 3Q'20
Hydropower production trends 2017-2020 Stable production expected in 3Q’20 Stellar operational results in 1H’20 following increase of water inflows: Stable production expected in 3Q’20: • Volga-Kama cascade – inflows to Rybinskaya, Zhigulevskaya and • Far East– inflows above the normal level, Ka
Slide 15: Operating highlights 2015-2019
Operating highlights 2015-2019 Solid production growth year over year High-margin, low cost hydropower electricity generation remains RusHydro’s core business. RusHydro is a price-taker. The company’s hydropower plants produce electricity regardless of market demand and economic volatility. Factors
Slide 16: Market overview
Market overview 16
Slide 17: Market overview: Stable pricing environment
Market overview Stable pricing environment Spot market price dynamics: 2019: 1st price zone – 1,298 RUB/MWh (+1.0% y-o-y), 2nd price zone – 774 RUB/MWh (-6.3% y-o-y) 1H 2020: 1st price zone – 1,147 RUB/MWh (-11.6% vs. 2019), 2nd price zone - 880 RUB/MWh (+13.8% vs. 2019) Expected decrease in
Slide 18: Market overview: RAO ES East tariff regulation
Market overview: RAO ES East tariff regulation Improvement of financial shape In 2020 average growth of electricity and heat tariffs in the Far Eastern Federal District amounted to 5.1% and 3.9% respectively Approved electricity tariff dynamics for key operating companies 1 Approved heat tariff dyna
Slide 19: Financial results
aa ] RusHydro Financial results
Slide 20: Key financials 2015-2019
Key financials 2015-2019 Solid top line growth. Dividends protected by new policy ↗ Revenue growth in recent years driven by increased output, commissioning of new capacity, favorable pricing environment and the role of hydro in Russia’s power system. RusHydro is a price taker ↗ Continuous improveme
Slide 21: 2Q and 1H 2020 Revenue
2Q and 1H 2020 Revenue Increase of water inflows and diversified asset base Key highlights of 2Q and 1H 2020 2Q and 1H Revenue dynamics Revenue in 2Q’20 and 1H’20 increased by 10.7% and 9.0% +9.0% to RUB 100.4 and RUB 218.1 bn, respectively, following hydropower production growth on the back of in
Slide 22: 2Q and 1H 2020 EBITDA and profitability
2Q and 1H 2020 EBITDA and profitability Solid hydropower performance, improvement in Far East Key highlights of 2Q and 1H 2Q and 1H EBITDA & EBITDA margin dynamics EBITDA increased by 46.4% and 33.3% in 2Q and 1H reaching RUB 31.0 bn and RUB 67.7 bn, respectively with EBITDA +33.3% margins of 30.9
Slide 23: Debt profile
Debt profile (1) Solid financial position. Ruble-denominated debt Key highlights Debt repayment profile (3) (RUB bn) Total financial debt as of July 31, 2020: RUB 217.4 bn Total debt is 100% ruble-denominated following successful divestment of PJSC MEK Low leverage with a Net Financial Debt /
Slide 24: Update
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Slide 25: 2020 outlook and key drivers of financial performance
2020 outlook and key drivers of financial performance 1 • RusHydro maintains solid operational outlook through 2H’2020 Operations • Increase in production following launch of Nizhne-Bureyskaya HPP, Zaramagaskaya HPP-1 and Sakhalinskaya GRES-2 2 Financial • Following commissioning of new generating f
Slide 26: Appendix
os WwW Appendix
Slide 27: Capex: investment plan 2020-2025
Capex: investment plan 2020-2025 Well-balance in terms of financing sources On March 26, 2020 the Board of Directors approved RusHydro’s new investment program for RUB 632 bn2. Key differences vs. prior investment program • Term of the program - 6 years vs. 5 years for the prior investment program •
Slide 28: Dividends: New policy ensures guaranteed payout
Dividends New policy ensures guaranteed payout Key highlights To improve predictability and consistency of forecasting dividend payments Board of Directors approved an amended 3- year dividend policy setting a minimum dividend threshold at average dividend paid over the previous three years: Divmi
Slide 29: Modernization of thermal capacities
Modernization of thermal capacities. 4 projects approved with guaranteed return on investment In July 2019 the Government approved all 4 projects submitted by RusHydro for modernization Characteristics Approved projects for modernization Long-term plan for capacity renewal and Yakutskaya GRES-1 de
Slide 30: Selected consolidated financial information
Selected consolidated financial information Consolidated income statement 6 months ended 30 June Consolidated statement of financial position As at 30.06.2020 As at 31.12.2019 RUB mn 2020 2019 RUB mn Revenue 193,866 180,890 ASSETS Government grants 24,191 19,244 Non-current assets Other operating in
Slide 31: Thank you for your interest in RusHydro Group
Thank you for your interest in RusHydro Group IR contact details tel.: +7 (495) 122 05 05 ext. 1304 ir@rushydro.ru 31