Societatea Energetica Electrica S.a. · BVB:EL
Societatea Energetica Electrica — Electrica Group — Wood's Winter Wonderland EME Conference 2019
33 slides from Societatea Energetica Electrica's conference presentation, December 2019
Slide 1: Electrica Group Presentation
Electrica Group Presentation Wood’s Winter Wonderland EME Conference December, 2019
Slide 2: Content
Content 1 Q3 2019 Financial Results Key Group Information Distribution Segment Overview Supply Segment Overview 2 Main Corporate Events 3 Appendices 2
Slide 3: Q3 2019 Financial results
Q3 2019 Financial results Curectrica
Slide 4: Electrica is the most important national distribution operator and electricity supplier
Key Group Information Electrica is the most important national distribution operator and the electricity supplier with the largest client base Geographical Electricity supply (9M 2019) presence ~3.54 million % ~18.5% 6.9 TWh household clients market share energy supplied on retail (August) market Cl
Slide 5: Electrica Group is the only Romanian group listed on the BSE & LSE
Key Group Information Electrica Group is the only Romanian group listed on the BSE & LSE and operates within distribution, supply & energy service segments Electrica Furnizare S.A. SDEE1) Transilvania Nord Electricity and natural gas Distribution Operator supply company HQ: Cluj-Napoca HQ: Bucharest
Slide 6: Electrica is a Leading Player in Energy Distribution and Supply
Key Group Information Electrica is a Leading Player in Energy Distribution and Supply areas Distribution Supply 13,2% Volumes 17,1% Volumes Distributed Supplied in in 2018 14,0% Electrica 2018 44.8 TWh distributors 50 TWh 39.4% 60,6% 12,2% 82,9% SD Muntenia Nord SD Transilvania Sud Electrica Furniza
Slide 7: Summary Consolidated Financials
Key Group Information Summary Consolidated Financials Revenues EBITDA Growth and Margin Performance (RON mn) EBITDA (RON mn) and EBITDA Margin (%) 5.603 5.613 373 378 18% 4.607 4.010 385 11% 12% 12% 258 5.230 5.235 3.752 4.223 601 706 681 549 2017 9M 2018 2018 9M 2019 2017 9M 2018 2018 9M 2019 Reven
Slide 8: Consolidated EBITDA and net result evolution
Key Group Information Consolidated EBITDA and net result evolution EBITDA (RON mn) Comments The consolidated EBITDA variation compared to the similar period of 2018 is RON -156 mn, due mostly to the impact of the negative variation of the energy margin (-134 mil. RON), thereof: • RON - 21 mn from th
Slide 9: Dividend distribution
Dividend distribution Key Group Information Distributed gross dividends (FY 2014 - 2018) (RON mn) Gross dividend per share (RON) and Dividend yield(1) (%) 291.6 6.9% 7.3% 6.8% 244.7 251.4 245.4 247.5 5.2% 6.1% 0.8600 0.7217 0.7415 0.7237 0,7300 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Divid
Slide 10: Distribution highlights
Distribution highlights Distribution segment overview Key figures (9M 2019) Financial results At the distribution segment level, EBITDA is decreasing with RON 77 mn (-14.6%), mainly due to: ~3.8 mn ▲ revenues: +74 mil. RON (+3.9%), from the increase of the total distributed quantity (+0.5%) and user
Slide 11: SDTN
SDTN Distribution segment overview Key figures (9M 2019) Financial results EBITDA is lower by RON 25 mn (-12.8%), mainly due to: ~1.29 mn ▲ revenues from distributed energy: +RON 21 mn (+2.4%), due to higher total quantity of Cluj Napoca users distributed electricity (0,5%), and to the positive evol
Slide 12: SDTN (Cont'd)
SDTN (Cont’d) Distribution segment overview Network losses costs Network losses Network losses (RON mn) (GWh) (%) 163 166 630 622 10,43% 10,34% 140 9,86% 9,86% 9,86% 9,47% 9,29% 9,37% 432 447 106 Reg. Realized Reg. Realized Reg. Realized Reg. Realized 2017 9M 2018 2018 9M 2019 2017 9M 2018 2018 9M 2
Slide 13: SDTS
SDTS Distribution segment overview Key figures (9M 2019) Financial results EBITDA is lower by RON 32 mn (-18.4%), due to: ▲ revenues from distributed electricity: +RON 13.4 mn (+2.4%), mainly from the increase in the ~1.16 mn total quantity of electricity distributed (+0,1%) and the positive evoluti
Slide 14: SDTS (Cont'd)
SDTS (Cont’d) Distribution segment overview Network losses cost Network losses Network losses (RON mn) (GWh) (%) 766 761 200 10,55% 10,19% 10,17% 188 10,17% 10,08% 9,17% 9,36% 8,86% 152 510 484 126 Reg. Realized Reg. Realized Reg. Realized Reg. Realized 2017 9M 2018 2018 9M 2019 2017 9M 2018 2018 9M
Slide 15: SDMN
SDMN Distribution segment overview Key figures (9M 2019) Financial results The EBITDA decrease of RON 26.7 mn, or 20%, compared to 9M 2018, was mainly due to: ~1.33 mn ▲ network losses cost higher by RON 24.1 mn, as a result of the 19.3% increase in the users electricity purchase price, impact parti
Slide 16: SDMN (Cont'd)
SDMN (Cont’d) Distribution segment overview Network losses cost Network losses Network losses (RON mn) (GWh) (%) 901 880 240 11,71% 230 11,31% 10,38% 10,57% 10,35% 9,55% 9,16% 9,16% 172 584 569 148 Reg. Realized Reg. Realized Reg. Realized Reg. Realized 2017 9M 2018 2018 9M 2019 2017 9M 2018 2018 9M
Slide 17: Electrica Serv
Electrica Serv Distribution segment overview Revenues General overview (RON mn) 359 Electrica Serv, a wholly-owned subsidiary of ELSA, provides repair and other energy ancillary services to third parties and various services to the companies within the group (vehicles rental, building rental etc.) K
Slide 18: Supply market
Supply market Supply segment overview Overall Market Share - 8 Months 2019 Key Facts Electrica Furnizare 18.54% The supply market consists of regulated and competitive segments: Others (<4% each) 25.51% • The regulated segment comprises 5 bound suppliers of last resort (SoLR), integrated within the
Slide 19: Supply segment
Supply segment Supply segment overview Coverage Key figures (9M 2019) Financial results The significant decrease in EBITDA, of RON 88.8 mn ~3.54 mn compared to 9M 2018, was due to: Electrica Furnizare consumers ▲ Higher electricity purchase costs for supply and balancing compared to the same period
Slide 20: Supply business overview
Supply business overview Supply segment overview Volume of Electricity Supplied on Retail Market Number of Consumers (TWh) Consumers (‘000’s) Regulated Competitive Regulated Competitive 9.2 3,577 3,548 3,541 3,544 8.5 215 246 253 265 4,2 6.9 6.3 3,6 2,7 3,3 3.362 3.302 3.288 3.279 5,0 4,9 3,6 3,6 20
Slide 21: Main Corporate Events
Main Corporate Events Curectrica
Slide 22: Main corporate events in Q3 2019 and up to date
Main corporate events in Q3 2019 and up to date Main Corporate Events Electrica’s General Meetings of Shareholders: OGMS dated 14 November 2019: • The shareholders approved the filing of a civil action in court underscoring the liability of the persons who have held the positions of directors and
Slide 23: Other relevant events in Q3 2019 and up to date
Other relevant events in Q3 2019 and up to date Main Corporate Events Other events: • 23 September 2019 – The rating agency Fitch Ratings granted the BBB rating (Investment Grade) to Electrica Group Intragroup agreements: Beneficiary Agreement’s scope Amount (RON th) Date of entry into force Expiry
Slide 24: Appendices
Appendices Curectrica
Slide 25: Background and basis of preparation for the financials
Background and basis of preparation for the financials Appendices Historical consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as endorsed by the European Union (IFRS-EU). Background The presentation and functional currency is Rom
Slide 26: Important Regulatory Changes – Distribution Activity
Important Regulatory Changes – Distribution Activity Annexes RP4 Regulations on Distribution tariffs The methodology for setting the distribution tariffs for RP4 was approved by ANRE Order no.169/18 September 2018, amended by ANRE Order no. 193/18 December 2018 and by ANRE Order no. 60/23 May 20
Slide 27: Shareholder Structure at 17 October 2019
Shareholder Structure at 17 October 2019 Appendices Geographical distribution of shareholders outside Romania Total number of shares: 48,933,238 * Dedeman SRL, NN Group NV and Allianz-Tiriac Pensii Private owns between 5% and 10% of the total number of voting rights Total number of shares: 345,939,9
Slide 28: Monthly volume and average price of Electrica's shares and GDRs
Monthly volume and average price of Electrica’s shares and GDRs Appendices 10.000.000 12,00 9.000.000 11,50 8.000.000 11,00 7.000.000 10,50 6.000.000 5.000.000 10,00 4.000.000 9,50 3.000.000 9,00 2.000.000 8,50 1.000.000 - 8,00 BSE - Shares - Monthly volume LSE - GDRs - Monthly volume BSE - Shares -
Slide 29: Comparative evolution with BSE indices (Jan 2019 – 31 October 2019)
Comparative evolution with BSE indices (Jan 2019 – 31 October 2019) Appendices % 135,00 130,00 125,00 120,00 115,00 110,00 105,00 100,00 95,00 90,00 EL (BSE) Performance BET Performance BET-FI Performance BET-NG Performance BET-XT Performance ELSA (LSE) Performance Source: Company data, BSE 29
Slide 30: Electrica closing price vs BET-TR (Jan 2019 – 31 October 2019)
Electrica closing price vs BET-TR (Jan 2019 – 31 October 2019) Appendices 50,00 40,00 EL: 22.0% BET-TR: 40.1% 30,00 20,00 10,00 0,00 -10,00 BET-TR Electrica adjusted price with dividends Source: Company data; BSE 30
Slide 31: Glossary
Glossary Appendices ANRE Romanian Energy Regulatory Authority LV Low Voltage BoD Board of Directors MV Medium Voltage BSE Bucharest Stock Exchange MWh MegaWatt hour CAPEX Capital Expenditure NBV Net Book Value NL Network Losses DAM Day Ahead Market OGMS Ordinary General Meeting of Shareholders DSO D
Slide 32: Investor Relations & Disclaimer
Investor Relations & Disclaimer • Email: ir@electrica.ro • Web: https://www.electrica.ro/en/investors/ Investor Relations • Tel: +40 (0)21.208.50.35 • Address: 9 Grigore Alexandrescu Str., 1st District, Bucharest, 010621 This document was prepared by Electrica for the presentation of Q3 2019 financi
Slide 33: Q&A
Q&A 33
Electrica Group — Wood's Winter Wonderland EME Conference 2019 on 6ix