Enea Sa · GPW:ENA
Enea Sa — FY2018 Earnings Presentation
33 slides from Enea Sa's earnings presentation, Mar 21, 2019
Slide 1: ENEA Group results in FY 2018
Zgodne z oczekiwaniami wyniki GK ENEA za 3Q 2018 ENEA Group results in FY 2018 Poznań, data zatwierdzenia: 21 listopada 2018 r. Data publikacji: 23 listopada 2018 r. 21 March 2019
Slide 2: ENEA Group highlights in 2018
ENEA Group highlights in 2018 Revenue growth of PLN 1.3 billion, i.e. by over 11% YoY First year of operation of Unit No. 11 at Kozienice Power Plant – generation as planned Growth in electricity generation of 5.5 TWh, i.e. by 26.4% YoY Growth in energy generation from renewable sources by 11% YoY R
Slide 3: ENEA Group and the market environment in 2018
ENEA Group and the market environment in 2018 Record-high prices of CO2 emission allowances Stabilisation of net coal production and over 20% increase in excavation works Increased social engagement of the Group and continued support for education Significant changes in the regulatory environment Hi
Slide 4: Improved operating data in three areas of activity of ENEA Group
Improved operating data in three areas of activity of ENEA Group FY 2017 FY 2018 Change Q4 2017 Q4 2018 Change PRODUKCJA ENERGII Net generation ELEKTRYCZNEJ NETTO of electricity 20,973 26,503 26.4% 5,795 6,563 13.3% [GWh] SPRZEDAŻ Sale of USŁUG distribution services 19,259 19,877 3.2% 4,937 4,941 0.
Slide 5: Coal market, energy market, operating data
Coal market, energy market, operating data ENEA Group’s financial results in FY 2018 1. Podsumowanie operacyjne Financial results of LW Bogdanka Group in FY 2018 Summary Additional information
Slide 6: Coal prices remained high throughout 2018
Coal prices remained high throughout 2018 115 Average prices in 2018 105 • Amsterdam - Rotterdam - Antwerp: 91.72 USD/t 95 USD/t • Richards Bay: 98.53 USD/t 85 • Newcastle: 107.34 USD/t • Baltic Ports: 86.55 USD/t 75 65 J F M A M J J A S O N D J F M A M J J A S O N D 2017 2018 Newcasttle (Australia)
Slide 7: Considerable increases in energy prices on the forward and SPOT markets
Considerable increases in energy prices on the forward and SPOT markets BASE Y prices vs SPOT prices 320,00 310,00 300,00 290,00 280,00 270,00 260,00 250,00 PLN/MWh 240,00 230,00 220,00 210,00 200,00 190,00 180,00 +39.3% 170,00 160,00 150,00 140,00 Jan I Feb II Mar III Apr IV May V Jun VI Jul VII Au
Slide 8: Upward trend in prices of property rights
Upward trend in prices of property rights 170,00 Prices of PMOZE_A property rights 160,00 150,00 140,00 130,00 120,00 110,00 PLN/MWh 100,00 90,00 80,00 70,00 60,00 50,00 40,00 30,00 20,00 10,00 I AJJ II FJ MIII IV A MV J VI J VII A VIII SJ IX O X N XI D XII JJI IIFJ III M IV A V M J VI J VII A VIII
Slide 9: Record-high prices of CO2 emission allowances
Record-high prices of CO2 emission allowances 26 EUA and CER quotations 24 22 20 18 16 14 EUR/t EUA Dec-19 price at the end of 12 December 2018: 25.01 EUR/t 10 8 EUA Dec-18 price at the end of trading: 24.26 EUR/t 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Au
Slide 10: Significant growth in the volume of electricity generated
Significant growth in the volume of electricity generated Operating data FY 2017 FY 2018 Change Q4 2017 Q4 2018 Change ENEA Group [GWh] Total net generation 20,973 26,503 26.4% 5,795 6,563 13.3% of electricity including: Kozienice Power Plant 13,599 16,426 20.8% 3,598 4,046 12.5% Połaniec Power Plan
Slide 11: Increase in the sales volume of electricity and distribution services
Increase in the sales volume of electricity and distribution services Sales figures FY 2017 FY 2018 Change Q4 2017 Q4 2018 Change ENEA Group [GWh] Sales of electricity and gaseous fuel 18,916 21,457 13.4% 4,877 5,595 14.7% to retail customers Sales of distribution services 19,259 19,877 3.2% 4,937 4
Slide 12: In Q4 2018 and 2018, the results of the LWB were significantly influenced by geological and hydrological events
In Q4 2018 and 2018, the results of the LWB were significantly influenced by geological and hydrological events Operating data FY 2017 FY 2018 Change Q4 2017 Q4 2018 Change LW Bogdanka Net coal production [’000 tonnes] 9,050 9,007 -0.5% 2,338 2,187 -6.5% Coal sales [’000 tonnes] 9,151 8,943 -2.3% 2,
Slide 13: Support from the Capacity Market – an additional financial boost until 2021
Support from the Capacity Market – an additional financial boost until 2021 Objective: to ensure security of electricity supply in the future Tools: investment incentives for construction of new modern generation units and modernisation of existing ones, also taking into account environmental protec
Slide 14: ENEA Group’s financial results in FY 2018
Coal market, energy market, operating data ENEA Group’s financial results in FY 2018 1. Podsumowanie operacyjne Financial results of LW Bogdanka Group in FY 2018 Summary Additional information
Slide 15: Generation and Distribution stabilise the Group's EBITDA
Generation and Distribution stabilise the Group's EBITDA 1,111.2 72.4 2,348.3 -76.3 -97.4 868.7 469.7 Mining Generation Distribution Trading Other activities Unassigned items and EBITDA 2018 exclusions FY 2018 EBITDA [PLN m] 469.7 868.7 1,111.2 -76.3 72.4 -97.4 2 348,3 Share in FY 2018 EBITDA 20.0%
Slide 16: Generation and Distribution stabilise the Group's EBITDA (Q4)
Generation and Distribution stabilise the Group's EBITDA 239.5 10.5 -114.1 375.0 -36.0 205.2 69.9 Unassigned items Wydobycie Mining Wytwarzanie Generation Dystrybucja Distribution Obrót Trading Pozostała działalność Other activities Pozycje nieprzypisane i EBITDA Q4 20184Q 2018 EBITDA and exclusions
Slide 17: Key financials
Key financials Financial results FY 2017 FY 2018 Change Q4 2017 Q4 2018 Change ENEA Group [PLN m] Net sales revenue 1) 11,406 12,673 11.1% 3,044 3,289 8.1% EBITDA 2,684 2,348 -12.5% 736 375 -49.1% 2) EBIT 1,488 1,037 -30.3% 418 117 -72.0% 2) Net profit 1,165 719 -38.3% 327 99 -69.7% 2) Net profit at
Slide 18: The largest capital expenditures in the Distribution area
The largest capital expenditures in the Distribution area CAPEX Status of plan FY 2017 FY 2018 implementation 2019 plan [PLN m] (2018) Generation 1,094.7 430.2 1) 72.2% 619.1 Distribution 1,022.3 1,000.4 103.5% 1,011.5 Mining 373.4 463.1 93.4% 580.5 Support and other 86.6 81.8 33.3% 157.6 Equity inv
Slide 19: Successful first year of operation of Unit No. 11
Successful first year of operation of Unit No. 11 5.4 TWh Unit No. 11 contributes of net electricity generation more than 20% of the - as planned Generation area’s margin PLN 3.3 billion - estimated revenues from Efficiency: 45.8% the Capacity Market (national average: 34.1%) in 15 years Over PLN 10
Slide 20: Ostrołęka C project – current status
Ostrołęka C project – current status The project is being carried out by the special purpose vehicle (SPV) Elektrownia Ostrołęka Sp. z o.o. pursuant to the Memorandum of Understanding of 28 December 2018 entered into by and between ENEA S.A., Energa S.A. and the SPV, which defined new rules of coope
Slide 21: Upgrades and planned overhauls of generation units in 2019
Upgrades and planned overhauls of generation units in 2019 ENEA Wytwarzanie ▪ U2 (228 MW) – 4 months (Q1/Q2) ▪ U3 (225 MW) – 1 month (Q2) ▪ U7 (228 MW) – 4 months (Q1/Q2) ▪ U8 (228 MW) – 1 month (Q1) ▪ U9 (560 MW) – 5 months (Q1/Q2) ▪ U11 (1,075 MW) – 1 month (Q4) ENEA Połaniec ▪ U5 (225 MW) – 5 mon
Slide 22: Financial results of LW Bogdanka Group in FY 2018
Coal market, energy market, operating data ENEA Group’s financial results in FY 2018 1. Podsumowanie operacyjne Financial results of LW Bogdanka Group in FY 2018 Summary Additional information
Slide 23: Key financials of LW Bogdanka Group
Key financials of LW Bogdanka Group Financial Wyniki results finansowe LWLWBogdanka Group FY 2017 FY 2018 Change Q4 2017 Q4 2018 Change GK Bogdanka [PLNzł] [mln m] Net sales revenue 1,780 1,757 -23 473 421 -52 EBITDA 709 469 -240 256 70 -186 EBITDA (excluding one-offs) 594 469 -125 141 70 -71 EBIT 8
Slide 24: EBITDA in FY 2018 vs. in FY 2017
EBITDA in FY 2018 vs. in FY 2017 PLN m 700,0 61.2 600,0 49.3 500,0 40.9 22.7 34.2 25.4 400,0 132.7 300,0 594.0 469.2 200,0 100,0 0,0 EBITDA GK LWB 1-4Q 2017 Ilość sprzedanego węgla Quantity of coal sold Cenaof coal Sales price Zmiana Changezakresu robót of scope of Zmiana Changewydobycia in grossbru
Slide 25: EBITDA in Q4 2018 vs. in Q4 2017
EBITDA in Q4 2018 vs. in Q4 2017 PLN m 160,0 140,0 120,0 100,0 10.9 2.8 80,0 7.0 58.8 8.4 141.5 19.0 60,0 40,0 47.1 69.7 20,0 0,0 EBITDA Q4 2017GK LWBLWB 4Q Group Ilość sprzedanego Quantity węgla of coal sold Cenaof coal Sales price Zmiana Changezakresu robót of scope of Zmiana Change in wydobycia g
Slide 26: Summary
Coal market, energy market, operating data ENEA Group’s financial results in FY 2018 1. Podsumowanie operacyjne Financial results of LW Bogdanka Group in FY 2018 Summary Additional information
Slide 27: 2019 trends vs. 2018
2019 trends vs. 2018 Area 2019 trend Key drivers (+) Increase in coal prices (+) Further increase in the length of new galleries Mining Growth (-) Increase in fixed costs (-) Renovation of railway routes (+) Increase in electricity generation volume (+) High wholesale electricity prices (+) Completi
Slide 28: Summary of FY 2018
Summary of FY 2018 Revenue: PLN 12.7 billion EBITDA: PLN 2.35 billion Net profit: PLN 719 million CAPEX: PLN 2.3 billion Net debt/ EBITDA: 2.4 Sale of electricity and gas to retail customers: 21.5 TWh Growth in electricity generation of +5.5 TWh, i.e. up by 26.4% YoY Potential revenue from capacity
Slide 29: ENEA’s care for the natural environment
ENEA’s care for the natural environment PLN 173 million Growth in energy for pro-environmental generation from renewable investment sources by 11% YoY CO2 emissions per 1 MWh Growth in the volume of of electricity generated electricity generation by ENEA Group from the Green Unit in 2016-2018 by ove
Slide 30: Additional information
Coal market, energy market, operating data ENEA Group’s financial results in FY 2018 1. Podsumowanie operacyjne Financial results of LW Bogdanka Group in FY 2018 Summary Additional information
Slide 31: Results of the Generation Area’s segments
Results of the Generation Area’s segments Generation, including: [PLN m] System Power Plants Heat RES FY 2017 FY 2018 Change FY 2017 FY 2018 Change FY 2017 FY 2018 Change Sales revenue 3,810 6,176 2,366 456 482 26 317 539 222 EBIT 289 112 (177) 102 72 (30) 38 315 277 EBITDA 515 565 50 154 127 (27) 6
Slide 32: Progress on ENEA Group’s Development Strategy
Progress on ENEA Group’s Development Strategy 1) • W 1Q 2018 średnia ważona wartość indeksu sesyjnego wzrosła o 45% w stosunku do 4Q 2017 - do poziomu 69,12 zł/MWh Reference year • Indeks dla rynku OTC był w tym samym okresie na podobnym poziomie do indeksu sesyjnego i wyniósł średnio 60,67 zł/MWh A
Slide 33: ENEA Group Results in FY 2018
Zgodne z oczekiwaniami wyniki GK ENEA za 3Q 2018 ENEA Group Results in FY 2018 gielda@enea.pl Poznań, data zatwierdzenia: 21 listopada 2018 r. Data publikacji: 23 listopada 2018 r. 21 March 2019