Societatea Energetica Electrica S.a. · BVB:EL
Societatea Energetica Electrica — Wood's Romania Investor Days in Bucharest 2024
48 slides from Societatea Energetica Electrica's conference presentation, Sep 5, 2024
Slide 1: Wood's Romania Investor Days in Bucharest
Wood's Romania Investor Days in Bucharest 5-6 September 2024 Based on the Presentation of Q2 2024 / H1 2024 Financial Results (Acc. IFRS-EU) Public
Slide 2: Content
Content 1 Electrica Group’s overview 2 Q2 2024 / H1 2024 Group’s Financial Results 3 Corporate Governance Bodies and Main Corporate Events 4 Group Strategy Implementation 5 Evolution of the Shares and GDRs and the Shareholders Structure 2 Public
Slide 3: Disclaimer
DISCLAIMER The results presented are based on the consolidated financial statements prepared in accordance with the International Financial Reporting Standards (IFRS-EU). This document was prepared by Electrica for the presentation of Q2 2024/ H1 2024 financial results and has an informative nature.
Slide 4: Electrica Group overview
1 Electrica Group overview 4 Public
Slide 5: Electrica is the most important national distribution operator and electricity supplier
Electrica Group overview Electrica is the most important national distribution operator and the electricity supplier with the largest places of consumption Electricity Supply Geographical presence ~3.5 millions Total market share Energy supplied on % places of 15.96% (Jan-May 2024) retail market con
Slide 6: Group structure
Group structure Electrica Group overview Electrica Group is the only Romanian group listed on the BSE & LSE which operates within energy production, distribution, supply & energy service segments 1) Filiala de Intretinere si Servicii Energetice (Maintenance and energy services) 2) The existence of a
Slide 7: Leading Player in Distribution and Supply
Leading Player in Distribution and Supply Electrica Group overview Distribution Supply Volumes Distributed in 2023 Volumes Supplied in 2023 Volumes Supplied in 2024 (Jan - May) 13.0% 16.77% 15.96% DEER_MN DEER_TN ELECTRICA FURNIZARE 12.8% DEER_TS Others 43.37 TWh 46.1 TWh 19.5 TWh Others 60.7% 13.4%
Slide 8: Electrica showcases remarkable performance in 10 years since its 2014 dual listing
Electrica Group overview Electrica showcases remarkable performance in 10 years since its 2014 dual listing ➢ Electrica is the only listed Romanian company active in electricity distribution, supply and production in Romania. Its listing in July 2014 on was the largest primary initial public offerin
Slide 9: Group's financial results Q2 2024 / H1 2024
2 Group’s financial results Q2 2024 / H1 2024 (acc. IFRS-EU) 9 Public
Slide 10: Summary Consolidated Financials (IFRS-EU)
Summary Consolidated Financials (IFRS-EU) Group’s financial results Revenues EBITDA Growth and Margin Performance (RON mn.) EBITDA (RON mn.) and EBITDA Margin (%) 10,010 9,817 1,80 0 17.5% 20. 0% 609 543 1,60 0 18. 0% 16. 0% 1,40 0 14.7% 14. 0% 1,20 0 12. 0% 4,807 1,00 0 12.1% 1,714 10. 0% 4,195 800
Slide 11: Consolidated EBITDA and Net Result Evolution (IFRS-EU)
Consolidated EBITDA and Net Result Evolution (IFRS-EU) Group’s financial results Comments The consolidated EBITDA variation H1 2024 vs. H1 2023 is RON +35 mn., being mostly the cumulated effect of the EBITDA (RON mn.) factors below: ❑ The positive variation of the energy margin RON +170 mn., thereof
Slide 12: Distribution Segment – Highlights (IFRS-EU)
Distribution Segment – Highlights (IFRS-EU) Group’s financial results Key figures H1 2024 Financial results EBITDA increased by RON 367 mn., mainly due to the evolution of: ~3.93 million ▲ increase in energy margins by RON 377 mn., as an effect of: users ➢ increase in energy revenues by RON +267 mn.
Slide 13: Distribution segment – main aspects (IFRS-EU)
Group’s financial results Distribution segment – main aspects (IFRS-EU) Distributed energy margin Distribution tariffs [RON/MWh] Relevant regulatory information: (RON mn.) 34,72 31,23 • The positive regulated result for H1 2024 of 74,69 29,09 31,22 RON 530 mn. does not include the effect of the 69,4
Slide 14: RRAB Analysis for distribution segment for 2024
RRAB Analysis for distribution segment for 2024 (RON mn.) Group’s financial results 14 Public
Slide 15: Analysis of regulated profit – budgeted result for the distribution segment 2024
Analysis of regulated profit – (IFRS-EU) budgeted result for the distribution Group’s financial results segment for the year 2024 15 Public
Slide 16: Analysis of Regulated Net Result 2024 for the Distribution Segment
Analysis of Regulated Net Result 2024 – OMFP 1802/2014 – IFRS-EU for Group’s financial results the Distribution Segment 16 Public
Slide 17: DEER
DEER Group’s financial results Key figures H1 2024 Network losses cost Network losses (RON mn) (GWh) ~3.93 mn users 1,862 1,883 1,886 203,815 km 97.196 km2 voltage lines coverage 987 1,125 area 978 582 491 RAB: RON 7.4 bn (est.) 8.68 TWh (+4.9%) 2022 6M 2023 2023 6M 2024 2022 6M 2023 2023 6M 2024 di
Slide 18: DEER - TN
DEER - TN Group’s financial results Key figures H1 2024 Network losses cost Network losses (RON mn) (GWh) ~1.37 mn 649 users 595 639 71,645 km 34,162 km2 voltage lines coverage 322 309 area 312 RAB: RON 2.5 bn (est.) 167 156 2.8 TWh (+2.6%) distributed energy 2022 6M 2023 2023 6M 2024 2022 6M 2023 2
Slide 19: DEER - TS
Group’s financial results DEER - TS Key figures H1 2024 Network losses Network losses cost (RON mn) (GWh) ~1.22 mn users 548 549 573 59,699 km 34,072 km2 354 voltage lines coverage area 300 284 183 RAB: RON 2.3 bn (est.) 141 3.04 TWh (+6,9%) distributed energy 2022 6M 2023 2023 6M 2024 2022 6M 2023
Slide 20: DEER - MN
DEER - MN Group’s financial results Key figures H1 2024 Network losses cost Network losses (RON mn) (GWh) ~1.35 mn users 684 719 675 72,415 km 28,962 km2 448 voltage lines coverage 386 376 area 232 193 RAB: RON 2.6 bn (est.) 2.85 TWh (+5.2%) 2022 6M 2023 2023 6M 2024 2022 6M 2023 2023 6M 2024 distri
Slide 21: Financial impact of electricity market evolution - distribution
Group’s financial results The financial impact of the electricity market perspectives evolution - distribution Evolution of the cost of electricity needed to cover NL (net with income) Network losses ❑ In H1 2024, the cost of electricity purchased for NL (net with income) coverage decreased by RON 9
Slide 22: Supply segment – Electrica Furnizare (IFRS-EU)
Supply segment – Electrica Furnizare (IFRS-EU) Group’s financial results Key figures H1 2024 Financial results EBITDA decreased by RON 340 mn. compared to H1 2023, mainly following the evolution of the factors below: ➢ the decrease in revenues from the supply of electricity and natural gas by RON 75
Slide 23: Electrica Furnizare had the largest share on the supply market in Romania
Group’s financial results Electrica Furnizare had the largest share on the supply market in Romania, in the first five months of 2024 The supply market consists of the competitive segment, the universal service segment (US) and the supplier of last resort (SoLR) segment. The competitive segment comp
Slide 24: Supply - key aspects – H1 2024
Supply - key aspects – H1 2024 Group’s financial results Volume of Electricity Supplied on Retail Volume of Electricity Supplied on Number of consumption places at Number of consumption places Market 6M 2024 (TWh) split by segment Retail Market 6M 2024 (TWh) 30 June 2024 (mn.) split by segment at 30
Slide 25: Financial impact of electricity market evolution – supply (1/3)
Group’s financial results The financial impact of the electricity market perspectives evolution – supply – H1 2024 (1/3) Throughout January – June 2024 the gross margin achieved was RON 71 mn., RON 211 mn. less than the level achieved in H1 2023 ( RON 282 mn.), and in terms of quantities there was a
Slide 26: Financial impact of electricity market evolution – supply (2/3)
Group’s financial results The Financial Impact of the Electricity Market Perspectives Evolution – Supply (2/3) Purchase prices evolution ❑ Starting 1 April 2024, according to GEO 32/2024, the selling price in MACEE is reduced from 450 lei/MWh to 400 lei/MWh, and MACEE becomes a voluntary market for
Slide 27: Financial impact of electricity market evolution – supply (3/3)
Group’s financial results The Financial Impact of the Electricity Market Perspectives Evolution – Supply (3/3) Receivables’ analysis (acc. OMFP 1802/2014) ❑ The balance of receivables increased by 19% (RON +511 mn.) at the end of H1 2024 compared to December 2024 and amounted to RON 3.2 mn. ❑ Outsta
Slide 28: Electrica Serv (SERV) (IFRS-EU)
Electrica Serv (SERV) (IFRS-EU) Group’s financial results General overview Revenues (RON mn.) SERV provides repair and other energy-related services to third parties, as well as several services to the companies within the group (vehicles rental, building rental etc.). SERV will multiply its efforts
Slide 29: Production Segment (IFRS-EU)
Production Segment (IFRS-EU) Group’s financial results General overview Starting with the year 2020, the Electrica Group proposed the development of a portfolio of Production Segment – Structure at 30 June 2024 electricity production capacities from renewable sources (wind and photovoltaic). At the
Slide 30: Group Liquidity
Group’s financial results Group Liquidity Total liquidity (RON mn.) ❑ At Group level, the total liquidity available in cash and overdraft limits as of 1,301 30 June 2024 was RON 1,076 mn., mainly due to the lower level of use of the overdraft limits in the distribution and supply segments. The level
Slide 31: Distribution of dividends
Group’s financial results Distribution of dividends Distributed gross dividends (FY 2014 – 2023) (RON mn.) Gross dividend per share (RON) and Dividend Yield(1) (%) 291.6 6.9% 7.3% 6.9% 251.4 245.4 247.5 246.1 247.9 6.8% 6.0% 244.7 5.2% 5.2% 6.1% 0.8600 0.7217 0.7415 0.7237 0.7300 0.7248 0.7300 152.8
Slide 32: Corporate Governance Bodies and Main Corporate Events
3 Corporate Governance Bodies and Main Corporate Events 32 Public
Slide 33: Corporate Governance Bodies
Corporate Governance Bodies Electrica Group overview • Mr. Dumitru Chirita – Chair Board of • Mr. Dragos-Valentin Neacsu – Vice Chair (independent) Directors • Mr. Adrian-Florin Lotrean – Vice Chair (independent) Current • Mr. Ion-Cosmin Petrescu Composition (since 26 January • Ms. Georgiana Bogasie
Slide 34: Relevant Corporate Events in H1 2024 and up to date (1/4)
Relevant Corporate Events in H1 2024 and up to date (1/4) Main Corporate Events ❑ On 26 January 2024, the OGMS took place, physically and online, through the voting platform https://electrica.voting.ro/, with a quorum of approx. 90% of the total voting rights, which approved the election of the foll
Slide 35: Relevant Corporate Events in H1 2024 and up to date (2/4)
Relevant Corporate Events in H1 2024 and up to date (2/4) Main Corporate Events ▪ On 22 January 2024, ELSA’s Board of Directors decided to extend the duration of the mandate of Mr. Alexandru-Aurelian Chirita, as interim CEO, under the same conditions, until 31 March 2024 (inclusively). ▪ On 12 Febru
Slide 36: Relevant Corporate Events in H1 2024 and up to date (3/4)
Relevant Corporate Events in H1 2024 and up to date (3/4) Main Corporate Events ▪ On 19 January 2024, Electrica announced that the company received a notification from EBRD according to which on 15 January 2024 EBRD has sold 205,505 shares of Electrica, thus reaching a holding below the 5% threshold
Slide 37: Relevant Corporate Events in H1 2024 and up to date (4/4)
Relevant Corporate Events in H1 2024 and up to date (4/4) Main Corporate Events ▪ On 30 April 2024, Electrica published a current report regarding the final settlement of DEER case no. 375/1285/2021. ▪ On 30 April 2024, Electrica published the preliminary key operational indicators for Q1 2024. ▪ On
Slide 38: Group Strategy implementation
4 Group Strategy implementation 38 Public
Slide 39: Electrica Group – Corporate Strategic Objectives (updated December 2023)
Electrica Group – Corporate Strategic Objectives (updated December 2023) Group Strategy Implementation o Renewable energy production (potentially complemented by in-band production) Diversification of renewable o Energy storage energy sources o Optimization of investment financing mechanisms and pro
Slide 40: Sustainalytics' ESG Scores for Electrica
Group Strategy Implementation Sustainability is one of the Values of Electrica The elements of novelty that we can identify concern the strategic orientation at the company level to ensure that we align ourselves with the highest environmental and social standards. From the energy solutions we offer
Slide 41: Evolution of the Shares and GDRs and the Shareholders Structure
5 Evolution of the Shares and GDRs and the Shareholders Structure 41 Public
Slide 42: Monthly Volume and Average Price of Electrica's Shares and GDRs
Shareholdings’ structure and evolution of the shares and GDRs Monthly Volume and Average Price of Electrica’s Shares and GDRs (1 Jan 2024 – 31 August 2024) 14,000,000 16.00 15.52 12,000,000 11,603,624 13.78 14.00 10,000,000 12.00 11.53 10.30 10.00 8,000,000 8.00 6,000,000 4,407,763 6.00 4,087,754 4,
Slide 43: Electrica's Median monthly volume vs FTSE Russell liquidity threshold
Electrica’s Median monthly volume vs FTSE Russell liquidity threshold Shareholdings’ structure and (admission and maintenance) - 1 January 2023 – 31 August 2024 evolution of the shares and GDRs 250,000 250,000 200,000 200,000 150,000 150,000 271,539 247,766 100,000 100,000 76,734 130,317 124,081 114
Slide 44: Electrica's adjusted closing price vs BET-TR
Shareholdings’ structure and evolution of the shares and GDRs Electrica’s adjusted closing price vs BET-TR (1 January – 3 September 2024) 40.00 EL: +26.98% BET-TR: +25.72% 26.98 30.00 25.72 20.00 10.00 -2.96 0.00 -0.91 -10.00 BET-TR Electrica adjusted price with dividends Source: Company’s data, BSE
Slide 45: Evolution of the adjusted price Electrica vs BET-TR and peers in 2024
Evolution of the adjusted price Electrica vs BET-TR, SNP, SNG, TEL, PE and H2O in 2024 – last 9/3/24 70.0% 60.0% 50.0% 49.1% 45.6% 40.0% 27.0% 30.0% 25.7% 20.0% 19.0% 10.0% 6.2% 3.18% 0.0% -10.0% BET-TR Evolution Evolution-adj. price SNP Evolution-adj. price SNG Evolution-adj. price TEL Evolution-ad
Slide 46: Shareholder Structure at 22 July 2024
Shareholder Structure at 22 July 2024 Shareholdings’ structure and evolution of the shares and GDRs (after the registration of the share capital decrease) 46 Public
Slide 47: Glossary
Glossary ANRE Romanian Energy Regulatory Authority IFRS International Financial Reporting Standard B2B Business to Business IMS Integrated Management System BET-TR Bucharest Exchange Trading - Total Return Index IPO Initial Public Offering BM Balancing Market LSE London Stock Exchange BoD Board of D
Slide 48: 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; +40 731 796 111 • Address: 9 Grigore Alexandrescu Str., 1st District, Bucharest, 010621 This document has been prepared by Electrica and is for inform
Societatea Energetica Electrica — Wood's Romania Investor Days in Bucharest 2024 on 6ix