Naturgy Energy Group, S.a. · BME:NTGY
Naturgy Energy — FY2024 Earnings Presentation
52 slides from Naturgy Energy's earnings presentation, Feb 20, 2025
Slide 1: Transforming together - 20 February 2025
Naturgy y Transforming (ogeh/er 20 February 2025
Slide 2: Agenda
1 2024 Results 2 Delivery of 2021 Strategic Plan 3 2025 Strategic Plan 4 Financial outlook 2025-27
Slide 3: 2024 Results
2024 Results
Slide 4: Energy markets evolution
2024 Energy markets evolution Results Brent (USD/bbl) TTF (€/MWh) Iberian electricity market (€/MWh) 1. 2024 Results 2% 30% 28% 83 81 48 87 34 63 FY23 FY24 FY23 FY24 FY23 FY24 Henry Hub (USD/MMBtu) JKM (USD/MMBtu) CO2 (€/t) 21% 27% 22% 3 16 84 2 12 65 Source: Platts, Heren, Bloomberg, ICE, OMIE Note
Slide 5: 2024 Highlights
2024 Highlights Results €m 1. 2024 Results EBITDA Net income › Efficient operational management despite external 5,365 1,901 factors and a more challenging energy backdrop › FY23: 5,475 FY23: 1,986 › Capital discipline and profitability remained a cornerstone in the current Capex Net debt environmen
Slide 6: Capital allocation
2024 Capital allocation Results Sources & Uses (€m) Capex mainly in networks and renewables (€m) 1. 2024 Results 2,280 5,338 5,338 Net debt Rest 111 478 Hybrid redemption increase and others 353 Networks 1,235 Taxes and levies 919 Renewable installed capacity (GW) By geography 1,345 Dividends Spain
Slide 7: Cash flow and Net debt evolution
2024 Cash flow and Net debt evolution Results €m FY24 1. 2024 Results EBITDA 5,365 Liquidity 9,237 11,237 Taxes (663) Financial costs (465) Average cost of debt 3.9% 4.0% Non-cash items (303) Funds from operations 3,934 % fixed rated 75% 68% Change in working capital 58 12,090 1,345 184 12,201 Cash
Slide 8: Exceeded guidance
2024 Exceeded guidance Results EBITDA (€m) Net income (€m) 1. 2024 Results 5,475 above 5,365 above 4,950 5,300 1,986 1,901 1,649 1,800 FY22 FY23 FY24 FY24 FY22 FY23 FY24 FY24 guidance guidance Capex (€m) Net debt (€m) 2,747 around around 2,280 12,070 12,090 12,800 12,201 1,924 2,400 FY22 FY23 FY24 F
Slide 9: Gas networks
2024 Gas networks Results 1. 2024 Results EBITDA (€m) 125 1,919 Spain: remuneration adjustments from current regulatory framework as well as lower residential demand due to mild temperatures 1,812 116 Mexico: regulatory tariff updates, lower margins in supply, and negative FX impact (59) (17) Brazil
Slide 10: Electricity networks
2024 Electricity networks Results 1. 2024 Results EBITDA (€m) Spain: higher remunerated asset base and 37 971 reduced penalties from lower energy losses 63 Panama: impacted by regulatory review 20 completed in July 2023 and higher demand 851 due to rise in temperatures Argentina: regulatory tariff u
Slide 11: Energy management
2024 Energy management Results 1. 2024 Results EBITDA (€m) 2024 price agreement with Sonatrach 1,104 • Confirms solid relationship • Ensures prices reflect market conditions 752 • Underlines commitment to security of supply Active management of hedged LNG volumes Comparison affected by the reversal
Slide 12: Thermal generation
2024 Thermal generation Results 1. 2024 Results EBITDA (€m) Spain: higher renewable resource including 670 record high hydro production led to lower 602 production and margins 53 Mexico: higher revenue driven by higher (121) availability and production CCGTs play an increasingly crucial role to guar
Slide 13: Renewable generation
2024 Renewable generation Results 1. 2024 Results EBITDA (€m) Spain: higher installed capacity and 41 576 production, notably in hydro and wind 8 17 529 (19) USA: start of operation of the first solar plant (302MW) developed in Texas LatAm: lower margins in Chile and Costa Rica affected by the end o
Slide 14: Supply
2024 Supply Results 1. 2024 Results EBITDA (€m) Everyday, we serve energy (gas and/or power) 704 to over 11m households in Spain (distribution 648 and retail) Power: lower prices and regulatory price cap removal Gas: retail margins remained resilient together while industrial segment Client servicin
Slide 15: Summary
2024 Summary Results 1. 2024 Results More challenging scenario vs. FY23 Resilient results in line with FY23 record highs Exceeded delivery on FY24 commitments 15
Slide 16: Delivery of 2021 Strategic Plan
Delivery of 2021 Strategic Plan
Slide 17: 2021 Strategic Plan achievements
2021 2021 Strategic Plan achievements Strategic Plan 2. Delivery of 2021 Strategic Plan › Advanced on decarbonization › Continued efficiency gains › Managed risks and ensured security of supply › Enhanced commercial excellence › Invested in talent and ESG › Exceeded 2024 targets and created value 17
Slide 18: Advanced on decarbonization
2021 Advanced on decarbonization Strategic Plan 2. Delivery of 2021 Global installed capacity (GW) Strategic Plan 19.5 +3.6 Under construction 1.6 15.9 No emissions PV Wind No emissions (6.0) Hydro Nuclear Low emissions CCGTs (9.9) FY21 FY24 18
Slide 19: Continued efficiency gains
2021 Continued efficiency gains Strategic Plan 2. Delivery of 2021 Opex/Margin (%) Opex (€m) Strategic Plan -10p.p. -10% 34% 38% 2,100 24% 1,900 FY21 FY24 Peers average FY21 FY24 Opex reduction in a context of higher inflation Note: Peers considers 2023 published results from 6 integrated European u
Slide 20: Managed risks and ensured security of supply
2021 Managed risks and ensured security of supply Strategic Plan 2. Delivery of 2021 Volatility Security of supply Regulation Strategic Plan › Balance between inframarginal › Essential role of CCGTs to ensure › Proactivity in the face of generation and demand in Spain power supply exceptional measur
Slide 21: Enhanced commercial excellence
2021 Enhanced commercial excellence Strategic Plan 2. Delivery of 2021 Clients Strategic Plan › Improving customer experience › Increased value-added services (inc. solar DG and Energy Savings Certificates) Client Net Promoter Score (%) Avg. power interruption time (min) +25p.p. -8% FY21 FY24 FY21 F
Slide 22: Invested in talent and ESG
2021 Invested in talent and ESG Strategic Plan 2. Delivery of 2021 People Strategic Plan › Great Place to Work award in 2024 › program Flex&Lead for young talent Special Employee Net Promoter Score (%) Training hours / FTE (#) +43p.p. +11% FY21 FY24 FY21 FY24 Share of women in management positions (
Slide 23: Exceeded Plan targets
2021 Exceeded Plan targets Strategic Plan EBITDA(€bn) Net income (€bn) 2. Delivery of 2021 Strategic Plan 5.4 5.1 1.9 1.8 1.2 3.5 FY21 FY24 Target FY21 FY24 Target Investment (€bn/yr) Net debt (€bn) 2.3 2.6 16.0 1.8 12.8 12.2 FY21 FY24 Target FY21 FY24 Target 23
Slide 24: Value created for shareholders
2021 Value created for shareholders Strategic Plan ROIC1 TSR 2021-24 2. Delivery of 2021 Strategic Plan +430 bps Annualized TSR 11.1% 11.5% 6.8% FY21 FY24 Eurostoxx ROE2 4.8% Utilities +400 bps Notes: Consolidated ratios based on book values 1. ROIC estimated as EBIT after taxes 16.1% divided by ave
Slide 25: Naturgy 2025 Strategic Plan
Naturgy 2025 Strategic Plan
Slide 26: Selected energy sector trends (i/ii)
2025 Selected energy sector trends (i/ii) Strategic Plan Energy prices remain volatile Commodity prices (€/MWh) and sensitive to geopolitical PVB Pool 3. 2025 Strategic Plan uncertainties Source: MIBGAS, REE FY24 FY25 FY24 FY25 Higher penetration of renewables Global share of renewables Hours with p
Slide 27: Selected energy sector trends (ii/ii)
2025 Selected energy sector trends (ii/ii) Strategic Plan Gas as an essential component Naturgy CCGT power-ups (#) CCGT share of generation mix (%) to guarantee security of supply 5x 3x 3. 2025 Strategic Plan and flexibility 600 >3,000 14 5 Source: PNIEC FY18 FY24 PNIEC FY25 2024 Renewable gases and
Slide 28: Naturgy's industrial model
2025 Naturgy’s industrial model Strategic Plan 3. 2025 Strategic Plan Integrated model across the value chain Multi-energy position Client at the centre › Networks resilience › Maintaining gas as a key › Multi energy offering with providing stable cash flows energy transition source value added serv
Slide 29: Execution principles
2025 Execution principles Strategic Plan 3. 2025 Strategic Plan Operational Financial discipline Shareholder remuneration excellence and profitability and share liquidity › Best-in-class operations › Commitment to a BBB rating › Attractive and sustainable across business units and continuous balance
Slide 30: Key 2027 ESG objectives
2025 Key 2027 ESG objectives Strategic Plan 3. 2025 Strategic Plan Environmental objectives of the Climate transition Plan Social Governance • Scope 1 & Scope 2 • Women in executive ESG key objectives as part of 40% GHG emissions roles worldwide employees’ bonus scheme reduction vs. 2022 -33% (align
Slide 31: Energy markets outlook
2025 Energy markets outlook Strategic Plan Brent (USD/bbl) TTF/PVB (€/MWh) Iberian electricity pool (€/MWh) 8% 34% 19% 3. 2025 Strategic Plan 76 70 79 64 47 31 FY25 FY27 FY25 FY27 FY25 FY27 Henry Hub (USD/MMBtu) CO2 (€/t) 3% 6% 3.9 3.8 78 83 65 Source: Platts, Heren, Bloomberg, ICE, OMIE Note: FY25
Slide 32: CAPEX plan 2025-27 – Key areas
2025 CAPEX plan 2025-27 – Key areas Strategic Plan Total Capex Networks Renewable energies 2025-27 €6.4 bn 3. 2025 Strategic Plan 20% Networks Renewable energies 50% 30% Supply & Energy management Investments on adequately Power: selective investments meeting remunerated, clear and stable regulatory
Slide 33: Networks
2025 Networks Strategic Plan Capex FY25-27E (€bn) EBITDA (€bn) Ambition: enabling energy transition, scaling growth and maintaining best-in-class operations 3. 2025 Strategic Plan +4% Growth Value creation levers: › Capture sources of growth 2.9 3.0 • Gas: deploy smart meters and biomethane 54% 3.3
Slide 34: Energy management
2025 Energy management Strategic Plan EBITDA (€bn) Ambition: ensure competitive supply and enhance value through asset optimization 3. 2025 Strategic Plan -45% Value creation levers: 0.8 › Active hedging and risk management, ensuring 0.4 Groups’ supply and profitability, while reducing FY24 FY27 exp
Slide 35: Thermal generation
2025 Thermal generation Strategic Plan Capex FY25-27 (€bn) EBITDA (€bn) Ambition: guarantee flexibility in Spain and supply industrials in Mexico 3. 2025 Strategic Plan Maintenance -8% Value creation levers: Continuous operational improvement to automate CCGTs operations and increase remote 0.4 0.6
Slide 36: Renewable energies – Power
2025 Renewable energies – Power Strategic Plan Capex FY25-27 (€bn) EBITDA (€bn) Ambition: grow assets to cover clients decarbonization needs, prioritizing value over size 3. 2025 Strategic Plan Maintenance +24% Value creation levers: 15% › Increase flexibility of the portfolio 1.2 • Wind power (+410
Slide 37: Renewable energies – Gases
2025 Renewable energies – Gases Strategic Plan Spain (status of development) EBITDA (€m) Ambition: become the leading player in biomethane 3. 2025 Strategic Plan in Spain › Lagging behind EU peers in ~85 biomethane plants and Value creation levers production › Technological excellence to allow for o
Slide 38: Supply
2025 Supply Strategic Plan Ambition: become Europe's leader in customer Energy sales (TWh) EBITDA (€bn) service and operational efficiency Power Gas 3. 2025 Strategic Plan Value creation levers +6% › Customer base growth: 71 • Integrated position in power 68 0.6 0.6 • Leveraging biomethane in gas 18
Slide 39: Financial Outlook 2025-27
Financial Outlook 2025-27
Slide 40: Capital allocation
2025-27 Financial Capital allocation outlook Sources & Uses of cash (€bn) Dividend floor per share (€/share) 4. Financial outlook 2025-27 +6% Change in Net debt 3.7 1.9 6.4 Capex 1.8 1.7 1.6 0.2 Share 2.3 repurchase Gross Cash 1.4 Flow 14.9 5.8 Dividends FY24 FY25 FY26 FY27 4.0 Taxes & Levies Subjec
Slide 41: Free float increase through share repurchase
2025-27 Financial Free float increase through share repurchase outlook Objective Description › › 4. Financial outlook 2025-27 Increase free float and improve liquidity Articulated as a Voluntary Tender Offer subject to return to MSCI indexes to upcoming AGM’s authorization: • Price €26.50/share • ~
Slide 42: Key financials
2025-27 Financial Key financials outlook Sustain investment efforts Maintain record EBITDA Maintain record Net income Investment (€bn) EBITDA (€bn) Net income (€bn) 4. Financial outlook 1.9 2.1 2.1 4.8 5.3 5.3 1.7 1.9 1.9 2025-27 1.4 3.5 1.2 5.3 5.3 2021 Avg. Avg. 2027 2021 Avg. Avg. 2027 2021 Avg.
Slide 43: Closing remarks
2025-27 Closing remarks Financial outlook 4. Financial outlook Industrial model Financial goals 2025-27 › Extract value from › Maintain record results integrated position and multienergy offering › attractive Deliver shareholder remuneration › Continue commitment with › Preserve BBB rating energy tr
Slide 44: Appendix
Appendix
Slide 45: FX evolution
Appendix FX evolution CLP/EUR MXN/EUR BRL/EUR 1,200 8.0 28 1,100 7.0 1,000 23 6.0 900 800 18 5.0 2021 2022 2023 2024 2025 2026 2027 2021 2022 2023 2024 2025 2026 2027 2021 2022 2023 2024 2025 2026 2027 Change 19% 6% -19% 23% -13% 28% (21-24) (25-30) (21-24) (25-30) (21-24) (25-30) ARS/EUR USD/EUR AU
Slide 46: Inflation evolution
Appendix Inflation evolution España Mexico Chile 5% 5% 5% 4% 4% 4% 3% 3% 3% 2% 2% 2% 1% 1% 1% 0% 0% 0% 2024 2025 2026 2027 2024 2025 2026 2027 2024 2025 2026 2027 Argentina USA Australia 200% 5% 5% 150% 4% 4% 3% 3% 100% 2% 2% 50% 1% 1% 0% 0% 0% 2024 2025 2026 2027 2024 2025 2026 2027 2024 2025 2026
Slide 47: Alternative Performance Metrics (i/iii)
Appendix Alternative Performance Metrics (i/iii) Naturgy's financial disclosures contain magnitudes and metrics drafted in The chosen APMs are useful for persons consulting the financial information as accordance with International Financial Reporting Standards (IFRS) and others they allow an analys
Slide 48: Alternative Performance Metrics (ii/iii)
Appendix Alternative Performance Metrics (ii/iii) Alternative performance Reconciliation of values Definition and terms Relevance of use metrics 31 December 2024 31 December 2023 Net capital expenditure CAPEX - Other proceeds from investing Restatement of 31 December 2023: Measure of the investment
Slide 49: Alternative Performance Metrics (iii/iii)
Appendix Alternative Performance Metrics (iii/iii) Alternative performance Reconciliation of values Definition and terms Relevance of use metrics 31 December 2024 31 December 2023 Measure of cash generation corresponding to operating and Restatement of 31 December 2023: Net free cash flow + Parent c
Slide 50: ESG Metrics
Appendix ESG Metrics FY24 FY23 Change Comments Health and safety Accidents with lost time1 units 12 9 33.3% Naturgy has launched its 24-25 global plan on Health & Safety with 2 transversal actions that should contribute to improve safety metrics LT Frequency rate units 0.18 0.13 38.5% Environment GH
Slide 51: Disclaimer
Appendix Disclaimer • This document is the property of Naturgy Energy Group, S.A. (Naturgy) and has been prepared for information purposes only and contains inside information per the 2014 market abuse regulation. • This communication contains forward-looking information and statements about Naturgy
Slide 52: capitalmarkets@naturgy.com
capitalmarkets@naturgy.com www.naturgy.com Av. de América 38, Madrid