Redes Energeticas Nacionais Sa · EURONEXT:RENE
Redes Energeticas Nacionais Sa — REN - Redes Energéticas Nacionais — FY2023 Earnings Presentation
29 slides from Redes Energeticas Nacionais Sa's earnings presentation, Mar 7, 2024
Slide 1: Unaudited Accounts, 7th March 2024
UNAUDITED ACCOUNTS 07TH MARCH 2024
Slide 2: Unaudited Accounts, 7th March 2024
UNAUDITED ACCOUNTS 07TH MARCH 2024
Slide 3: Overview of the Period
Slide 4: Key Messages – Financial
KEY MESSAGES – FINANCIAL €514.0M €149.2M €2,421.2M €301.5M +5.5% versus 2022 +33.5% versus 2022 -4.8% versus 2022 +49.6% versus 2022 EBITDA Non Recurrent Net Profit Net Debt CAPEX (w/o tariff deviations) EBITDA rose mostly driven by: Recurring Net Profit reached €125.0M Net debt (excluding tariff de
Slide 5: Key Messages – Operational
KEY MESSAGES – OPERATIONAL 60.6% Quality of service Committed to high H2 Green Valley +11.3 pp versus 2022 levels remained high ESG standards Agenda & H2MED | Renewable energy Regulation sources (RES) The level of energy transmission REN reviewed its sustainability The H2MED project was recognized R
Slide 6: Results Presentation 2023 (Unaudited Accounts)
mi oy eo RESULTS PRESENTATION 2023 (UNAUDITED ACCOUNTS)
Slide 7: Business Highlights
BUSINESS HIGHLIGHTS QUALITY OF SERVICE LEVELS AND COMBINED AVAILABILITY RATE REMAINED HIGH IN 2023, WITH LOWER ENERGY TRANSMISSION LOSSES, IN THE CONTEXT OF GROWING ELECTRICITY AND LOWER GAS CONSUMPTION 50.7TWh 2.3% 9,409km Consumption Energy transmission losses Line length 2022: 50.3TWh 0.4TWh (0.8
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS IMPROVEMENT OF OPERATIONAL RESULTS AND NET PROFIT EBITDA €26.7M (5.5%) Financial results €3.4M (7.7%) Net Profit €37.5M (33.5%) €514.0M €487.3M €-40.6M €-44.0M €149.2M €111.8M CAPEX €100.0M (49.6%) Average RAB1 €61.9M (1.7%) Net Debt2 €705.0M (34.5%) €301.5M €201.5M €3,547.8M €3
Slide 9: EBITDA
EBITDA INCREASE IN EBITDA DRIVEN BY ASSETS AND OPEX REMUNERATION IN DOMESTIC BUSINESS AND BY STRONG INTERNATIONAL BUSINESS PERFORMANCE EBITDA evolution breakdown - €M EBITDA contribution by business segment4 - % €+26.7M (+5.5%) 7.4 514.0 Electricity Gas Distribution5 23.8 Gas Transportation Internat
Slide 10: RoR Evolution
ROR EVOLUTION Domestic Business INCREASE OF BASE RETURN ON RAB, ON THE BACK OF HIGHER PORTUGUESE BOND YIELDS Portuguese 10Y Treasury Bond Yields * - % Base Return on RAB (RoR) ** - % 4 10Y Bond Yield 3.5 Linear (10Y Bond Yield) 2022 4.8 3 Electricity 2.5 2023 5.3 2 2022 5.3 1.5 AVERAGE YIELD - % Gas
Slide 11: Investment
INVESTMENT Domestic Business BOTH CAPEX AND TRANSFERS TO RAB INCREASED IN 2023 Transfers to RAB - €M Electricity KEY HIGHLIGHTS Electricity • New 150 kV overhead line (OHL) between Sines Substation and a client facility * and 150 kV double OHL between Gas Transportation Caniçada and Fafe Substations
Slide 12: RAB Returns
RAB RETURNS Domestic Business RAB REMUNERATION INCREASED ACROSS ALL BUSINESSES DRIVEN MOSTLY BY THE INCREASE IN THE RATE OF RETURN Return on RAB evolution breakdown - €M Electricity (GGS1) Gas Transportation Gas Distribution Return on 3.02 46.24 26.55 RAB 2022 RoR evolution 0.33 3.59 1.99 €+1.60M €+
Slide 13: OPEX
OPEX Domestic Business OPEX INCREASED 29.6% YOY, WHILE CORE OPEX GREW 1.3% Core OPEX1 evolution - €M KEY HIGHLIGHTS CORE EXTERNAL COSTS €+1.6M (+1.3%) • LNG Terminal electricity costs decreased reflecting lower 5.3 electricity prices (€-11.0M) • The decrease in electricity costs was partially offset
Slide 14: Chile Highlights
CHILE HIGHLIGHTS International Business SOLID PERFORMANCE FROM THE CHILEAN BUSINESSES, CONTRIBUTING 5.0%1 TO TOTAL EBITDA IN 2023 Contribution to EBITDA 2023 - €M TRANSEMEL (100%) EBITDA increased YoY mainly driven by higher revenues Revenues EBITDA 27.6 International €7.0M €6.8M €20.7M €15.5M (51.0
Slide 15: Below EBITDA
BELOW EBITDA INCREASE IN FINANCIAL RESULTS, REFLECTING INTEREST ON TARIFF DEVIATION, AND DECREASE IN TAXES 2022: €249.3M 2022: -€44.0M 2022: €82.3M €253.2M -€40.6M €71.0M €3.9M (1.6%) €3.4M (7.7%) €11.3M (13.7%) Depreciation & Amortization Financial results Taxes Increase of €3.9M versus 2022, along
Slide 16: Net Profit
NET PROFIT NET PROFIT INCREASED AS A RESULT OF HIGHER EBITDA, HIGHER FINANCIAL RESULTS AND LOWER TAXES, DESPITE HIGHER DEPRECIATIONS Net profit evolution breakdown - €M €37.5M KEY HIGHLIGHTS (33.5%) 11.6 149.2 26.7 3.4 • Increase in EBITDA reflecting the positive contribution of both domestic (+€19.
Slide 17: Debt
DEBT NET DEBT INCREASED DRIVEN BY TARIFF DEVIATIONS OUTFLOWS Net Debt Cost of Net Debt evolution - €M (w/o tariff deviations) Debt Adjusted Gross Debt Maturity - €M Net Debt 811 2,043.7 2,543.1 1.8% 699 605 Dec 2022 Gross debt 573 Average debt adjusted maturity Operating 2,7721 84 4.1 years3 -516.4
Slide 18: Results Presentation 2023 (Unaudited Accounts)
REN SENTATION (UNAUDITED ACCOUNTS ) ly] aoe 5
Slide 19: Strategic Plan Execution
STRATEGIC PLAN EXECUTION IN 2023, REN WAS ABLE TO DELIVER ACCORDING TO THE 2021-24 STRATEGIC GUIDELINES GUIDELINES STRATEGIC 2021-24 Investment growth story, ESG highest Solid financials delivering superior standard * and sustainable service quality shareholder returns Domestic Investment: Increase
Slide 20: Strategic Plan Targets
STRATEGIC PLAN TARGETS DURING 2023, REN HAS SUCCESSFULLY MET ITS 2021-24 BUSINESS PLAN TARGETS Comparison between 2023 Actuals and 2021-24 Business Plan Targets KEY HIGHLIGHTS 514 450 - 470 EBITDA EBITDA above target propelled by domestic business assets €M remuneration and strong international busi
Slide 21: Results Presentation 2023 (Unaudited Accounts)
RESULTS PRESENTATION 2023 (UNAUDITED ACCOUNTS ) PING STAINA Ue: BL 24
Slide 22: Accelerating Our ESG Commitment
ACCELERATING OUR ESG COMMITMENT PROGRESS TOWARDS OUR TARGETS Environmental Social 1/3 of women in 1st line management positions by 2030 33% in 2023 -55%1 CO2 emissions by 20301 -45% in 2023 Governance Increasing ESG weight in managers’ +5 pp in 2022, performance metrics to a total of 15% Achieve car
Slide 23: ESG Performance at a Glance
ESG PERFORMANCE AT A GLANCE INDICATOR UNIT 2023 2022 YoY Energy consumption GJ 4 322 497 3 646 260 19% Environment Greenhouse gas emissions (scope 1 and 2) tCO2eq 141 916 165 475 -14% Greenhouse gas emissions (scope 3) tCO2eq 72 273 84 343 -14% Intensity of greenhouse gas emissions (scope 1 and 2) t
Slide 24: ESG Highlights
ESG HIGHLIGHTS REN IS STRONGLY COMMITTED WITH SUSTAINABILITY • Approval of near-term scope 1, 2 and 3 • Target of 1/3 of women in first line management • Review of REN’s sustainability strategy following reduction targets according to the methodology positions achieved stakeholder consultation and d
Slide 25: Highest ESG Standards
HIGHEST ESG STANDARDS IMPROVING OUR PERFORMANCE IN INTERNATIONAL ESG SCORES Scale Score Strengths Latest update Governance, Opportunity disclosure, Risk management processes, and D-A A- Targets February 2024 Transparency and reporting, Business ethics, Innovation management, 0-100 60 Resource effici
Slide 26: Results Presentation 2023 (Unaudited Accounts)
RESULTS PRESENTATION 2023 (UNAUDITED ACCOUNTS) 26 4
Slide 27: Closing Remarks
CLOSING REMARKS STRONG DOMESTIC AND INTERNATIONAL OPERATIONAL PERFORMANCE, WITH THE FULFILLMENT OF THE 2021-2024 BUSINESS PLAN AND THE ACHIEVEMENT OF TRANSITION GOALS FOR RENEWABLE ENERGY SOURCES €514.0M €149.2M €2,421.2M +5.5% versus 2022 +33.5% versus 2022 -4.8% versus 2022 EBITDA Net Profit Net D
Slide 28: 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 29: Contacts
CONTACTS VISIT OUR WEB SITE AT WWW.REN.PT OR CONTACT US: Madalena Garrido – Head of IR Alexandra Martins Mariana Asseiceiro Telma Mendes Avenida Estados Unidos da América, 55,1749-061, Lisboa - Portugal ir@ren.pt
REN - Redes Energéticas Nacionais — FY2023 Earnings Presentation on 6ix