Redes Energeticas Nacionais Sa · EURONEXT:RENE
Redes Energeticas Nacionais Sa — REN - Redes Energéticas Nacionais — 9M23 Earnings Presentation
24 slides from Redes Energeticas Nacionais Sa's earnings presentation, Nov 10, 2023
Slide 1: Results Presentation 9M23
Slide 2: I II III
I II III Overview of the Business Closing Period Performance Remarks
Slide 3: Overview of the Period
01 OVERVIEW OF THE PERIOD
Slide 4: Key messages - Financial
Key messages - Financial • EBITDA grew 9.6% YoY, standing at €395.5M, driven by: (1) domestic business performance (+€27.7M), as a result of the increase in assets and opex remuneration (+€21.4M), other revenues (+€2.9M) and lower core OPEX (-€3.4M) due to lower electricity prices; (2) increase in c
Slide 5: Key messages - Operational
Key messages - Operational • In 9M23, Renewable energy sources (RES) contributed 55.2% to the overall energy supply, up from 44.2% in 9M22. Over the same period, photovoltaic energy production grew by 43%, with REN playing an important role in this transition to renewable energy sources. • Electrici
Slide 6: Business Performance
REND 9M2¢ Results Presentation
Slide 7: Business highlights
Business highlights RENEWABLE ENERGY ACCOUNTED FOR 55.2% OF ELECTRICITY CONSUMPTION Consumption Energy transmission losses Line length 0.2TWh 21km 37.5TWh (0.5%) 2.1% 0.4 pp 9,425km (0.2%) Electricity 9M22: 37.7TWh 9M22: 1.8% 9M22: 9,404km Renewables in consumption supply Average interruption time C
Slide 8: Financial highlights
Financial highlights POSITIVE NET PROFIT EVOLUTION DRIVEN BY ROBUST OPERATIONAL PERFORMANCE EBITDA Financial results Net Profit 34.6 9.7 14.8 €395.5 (9.6%) €-35.5M (37.6%) €96.2M (18.2%) 9M22: €360.9M 9M22: €-25.8M 9M22: €81.4M CAPEX Average RAB1 Net Debt 51.1 92.4 522.5 €177.1M (40.5%) €3,510.9M (2
Slide 9: EBITDA
2. Business performance EBITDA EBITDA INCREASED DRIVEN BY ASSETS AND OPEX REMUNERATION IN DOMESTIC BUSINESS AND BY STRONG INTERNATIONAL BUSINESS PERFORMANCE EBITDA evolution breakdown - €M EBITDA contribution by business segment4 - % Electricity Gas Distribution5 €+34.6M Gas Transportation Internati
Slide 10: RoR Evolution Domestic Business
RoR Evolution Domestic Business BASE RETURN ON RAB HAS BEEN GROWING STEADILY, ON THE BACK OF RISING PORTUGUESE BOND YIELDS Portuguese 10Y Treasury Bond Yields - % Base Return on RAB (RoR)* - % 4 10Y Bond Yield Linear (10Y Bond Yield) 9M22 AVERAGE YIELD - % 4.7 3 Electricity 3 9M23 1.8% 3.2% 5.3 9M22
Slide 11: Investment Domestic Business
Investment Domestic Business CAPEX INCREASED IN 9M23, WHILE TRANSFERS TO RAB DECREASED Key Highlights Electricity Transfers to RAB - €M Gas Transportation Electricity Gas Distribution €-34.1M (-41.0%) • Installation of a second Transformer 400/60 kV, 170 MVA, at the Alcochete Substation 83.2 17.6 •
Slide 12: RAB Evolution Domestic Business
2. Business performance RAB Evolution Domestic Business DECREASE IN AVERAGE RAB REFLECTING HIGHER AMORTIZATION, MOSTLY IN ELECTRICITY AND GAS TRANSPORTATION BUSINESS Average RAB evolution - €M €-92.4M (-2.6%) 3,603.3 -41.7 6.8 3,510.9 -45.2 -12.3 Average RAB Electricity1 Gas Transportation Lands Gas
Slide 13: RAB Returns Domestic Business
2. Business performance RAB Returns Domestic Business RAB REMUNERATION GROWTH ACROSS ALL BUSINESSES DRIVEN MOSTLY BY THE INCREASE IN THE RATE OF RETURN Return on RAB evolution breakdown - €M Electricity (GGS1) Gas Transmission Gas Distribution Return on 2.16 33.94 19.38 RAB 9M22 RoR evolution 0.24 3
Slide 14: OPEX Domestic Business
2. Business performance OPEX Domestic Business OPEX INCREASED 25.5% YOY, WHILE CORE OPEX DROPPED 4.0% Core OPEX1 evolution - €M Key Highlights €-3.4M CORE EXTERNAL COSTS (-4.0%) 2.4 • LNG Terminal electricity costs decreased reflecting lower electricity prices (-€9.6M) 85.6 • The decrease is electri
Slide 15: Chile Highlights International Business
2. Business performance Chile Highlights International Business SOLID PERFORMANCE FROM THE CHILEAN BUSINESSES, CONTRIBUTING 5.3%1 TO TOTAL EBITDA IN 9M23 Contribution to EBITDA 9M23 - €M TRANSEMEL (100%) • EBITDA increased YoY mainly driven by higher revenues Revenues EBITDA 21.9 International €6.4M
Slide 16: Below EBITDA
2. Business performance Below EBITDA DECREASE IN FINANCIAL RESULTS, REFLECTING THE INCREASE IN THE AVERAGE COST OF DEBT Depreciation & Amortization Financial results Taxes 2.2 9.7 7.9 €188.7 (1.2%) €-35.5M (37.6%) €75.0M (11.7%) 9M22: €186.5M 9M22: €-25.8M 9M22: €67.1M • Increase of €2.2M versus 9M2
Slide 17: Net Profit
2. Business performance Net Profit NET PROFIT INCREASED AS A RESULT OF HIGHER EBITDA, PARTIALLY OFFSET BY LOWER FINANCIAL RESULTS AND HIGHER TAXES, DEPRECIATIONS AND CESE Net profit evolution breakdown - €M €14.8M Key Highlights (+18.2%) 34.6 • Increase in EBITDA reflecting the positive -2.2 contrib
Slide 18: Debt
2. Business performance Debt NET DEBT INCREASED DRIVEN BY TARIFF DEVIATIONS OUTFLOWS Net Debt evolution - €M Net Debt Cost of Adjusted Gross Debt Maturity - €M (w/o tariff deviations) Debt Gross 760 Average debt Net Debt 569 524 2,043.7 maturity Dec 2022 2,543.1 1.8% debt 351 294 adjusted 4.4 years4
Slide 19: ESG highlights
ESG highlights REN IS STRONGLY COMMITTED WITH SUSTAINABILITY ENVIRONMENTAL SOCIAL GOVERNANCE TARGETS -50% CO2 emissions by 2030 vs. 2019 >1/3 of women in 1st line management positions Increasing ESG weight in managers’ performance by 2030 metrics already by 2022 Carbon neutral by 2040 100% of new bo
Slide 20: Highest ESG Standards
Highest ESG Standards IMPROVING OUR PERFORMANCE IN INTERNATIONAL ESG SCORES SCALE SCORE YoY STRENGTHS LATEST ASSESSMENT 0-100 62 Innovation, environmental reporting, and social reporting December 2022 D-A B Governance, business strategy, financial planning, scenario analysis, and scope 1 and 2 emiss
Slide 21: Closing Remarks
03 CLOSING REMARKS
Slide 22: Closing Remarks
Closing Remarks REN CONTINUES TO DELIVER SOLID RESULTS AND RETURNS, THROUGH AN ONGOING COMMITMENT TO EXCELLENCE IN QUALITY SERVICE AND EXECUTION • Both domestic and international businesses • With a higher EBIT, Net Profit increased to • Net Debt dropped to €2,290.4M (-€160.3M YoY), improved their p
Slide 23: Disclaimer
Disclaimer This document has been prepared by REN – Redes Energéticas Nacionais, SGPS, S.A (the "Company") and its purpose is merely informative. As such, this document may be amended and supplemented at the discretion of REN and it should be read as a overview of the matters addressed or contained
Slide 24: Contacts
Contacts VISIT OUR WEB SITE AT WWW.REN.PT OR CONTACT US: Madalena Garrido – Head of IR Alexandra Martins Mariana Asseiceiro Telma Mendes Av. EUA, 55 1749-061 Lisboa Telephone: +351 210 013 546 ir@ren.pt
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