Societatea Energetica Electrica S.a. · BVB:EL
Societatea Energetica Electrica — Electrica Group — Romania Investor Days – London, March 2023
34 slides from Societatea Energetica Electrica's conference presentation, Feb 28, 2023
Slide 1: Electrica Group Presentation
Electrica Group Presentation Romania Investor Days – London, March 2023 Bucharest, 28 February 2022 Public
Slide 2: Content
Content 1 9M 2022 Financial results ▪ Key Group Information ▪ Distribution Segment Overview o The impact of the electricity market evolution on the distribution segment ▪ External electricity network maintenance segment - Overview ▪ Supply Segment Overview o The impact of the electricity market evol
Slide 3: Summary Consolidated Financials (9M 2022)
Summary Consolidated Financials (9M 2022) Key Group Information Revenues EBITDA Growth and Margin Performance (RON mn.) EBITDA (RON mn.) and EBITDA Margin (%) 7,179 7,245 6,501 449 15% 582 1,20 0 18% 557 15% 16% 5,018 1,00 0 14% 430 800 9% 12% 10% 600 1,104 8% 6,597 6,796 6% 5,944 953 400 4% 4,587 2
Slide 4: Consolidated EBITDA and net result evolution (9M 2022)
Consolidated EBITDA and net result evolution (9M 2022) Key Group Information Comments EBITDA (RON mn.) Consolidated EBITDA variation 9M 2022 vs. 9M 2021 is RON 629 mn., being mainly the cumulative effect of the following factors: ❑ The negative variation of the energy margin RON -106 mn., out of whi
Slide 5: Distribution segment – highlights (9M 2022)
Distribution segment – highlights (9M 2022) Distribution segment overview Key figures 9M 2022 Financial results EBITDA increased by RON 263 mn., mainly as a result of the evolution of the indicators below: ~3.83 mil users* ▼ decrease in energy margin by RON -530 mn., as a net effect of: - ▲ increase
Slide 6: Distribution segment – main aspects (9M 2022)
Distribution segment – main aspects (9M 2022) Distribution segment overview Relevant regulatory information: Distributed energy margin ➢ At the beginning of the current PR4 regulatory period, ANRE made a total negative correction of (RON mn.) closing the PR3 in the amount of RON (730) mn. (nominal t
Slide 7: DEER - TN
DEER - TN Distribution segment overview Key figures 9M 2022 Network losses cost Network losses (RON mn.) (GWh) ~1.33 mn. users* 486 619 633 490 504 70,651 km 34,162 km2 voltage lines* coverage 296 area* 200 169 RAB: RON 2.0 bn (est.) 4.3 TWh (-2.3%) distributed energy 2020 9M 2021 2021 9M 2022 2020
Slide 8: DEER - TS
Distribution segment overview DEER - TS Key figures 9M 2022 Network losses Network losses cost (RON mn.) (GWh) ~1.18 mn. users* 398 693 692 354 58,586 km 34,072 km2 481 voltage lines* coverage area* 215 407 164 RAB: RON 1.8 bn (est.) 4.61 TWh (-5.5%) distributed energy 2020 9M 2021 2021 9M 2022 2020
Slide 9: DEER - MN
DEER - MN Distribution segment overview Key figures 9M 2022 Network losses cost Network losses (RON mn.) (GWh) ~1.32 mn. users* 789 795 500 413 71,845 km 28,962 km2 549 519 voltage lines* coverage area* 259 195 RAB: RON 2.1 bn (est.) 4.53 TWh (-1.7%) 2020 9M 2021 2021 9M 2022 2020 9M 2021 2021 9M 20
Slide 10: The financial impact of the electricity market perspectives evolution – distribution (9M 2022)
The impact of the electricity market evolution on the distribution segment The financial impact of the electricity market perspectives evolution – distribution (9M 2022) Evolution of the cost of electricity needed to cover NL Network losses ❑ During the 9 months ending on 30 September 2022, the cost
Slide 11: Electrica Serv (SERV) (9M 2022)
Energy services segment - overview Electrica Serv (SERV) (9M 2022) General overview Revenues SERV provides repair and other energy-related services to third parties, as well as several (RON mn.) services to the companies within the group (vehicles rental, building rental etc.). Starting with 1 Decem
Slide 12: Supply segment – Electrica Furnizare (9M 2022)
Supply segment – Electrica Furnizare (9M 2022) Supply segment overview Key figures 9M 2022 Financial results EBITDA significantly increased by RON 344 mn. compared to 9M 2021, mainly following the evolution of the factors below: ~3.5 mn. ▲ the increase in revenues from the supply of energy and natur
Slide 13: Supply market (latest available ANRE data – November 2022)
Supply market (latest available ANRE data – November 2022) Supply segment overview Overall Market Share – November 2022 General overview Electrica The supply market comprises the competitive segment, universal service (US) as well as the Furnizare supplier of last resort (SoLR) segment. 17.75% Other
Slide 14: Supply - key aspects (9M 2022)
Supply - key aspects (9M 2022) Supply segment overview Volume of Electricity Supplied on Retail Market 9M 2022 (TWh) Number of consumption places at 30 September 2022 (mn) Competitive Universal Service SoLR Competitive Universal Service SoLR 9.29 9.41 3.6 3.5 3.5 3.5 0.3 0.3 6.94 4.23 6.39 4,4 4,2 1
Slide 15: The financial impact of the electricity market perspectives evolution – supply (1/2) (9M 2022)
The financial impact of the electricity market perspectives evolution – supply (1/2) (9M 2022) ❑ Between January and September 2022, the gross margin realized is exceeding the budgeted target with RON +96 mn. Main factors: ❑ Higher selling price with 70 RON / MWh realized vs budgeted, which generate
Slide 16: The financial impact of the electricity market perspectives evolution – supply (2/2) (9M 2022)
The financial impact of the electricity market perspectives evolution – supply (2/2) (9M 2022) Receivables’ analysis ❑ The total value of receivables balance increased by 43.3%, from RON 1,500 mn as of Dec. 2021 to RON 2,600 mn as of Sept. 2022. Total outstanding receivables increased with RON 139 m
Slide 17: Leading Player in Distribution and Supply (latest available ANRE data – November 2022)
Leading Player in Distribution and Supply (latest available ANRE data – November 2022) Distribution Supply Volumes Distributed in 2021 Volumes Supplied in 2021 Volumes Supplied in Jan-Nov 2022 17.75% 13.2% DEER_MN 18.42% DEER_TS Electrica Furnizare 12.7% DEER_TN Others 43.29TWh 46.3 TWh 50.99 TWh Al
Slide 18: Group liquidity (9M 2022)
Group Liquidity Group liquidity (9M 2022) Total liquidity (RON mn.) ❑ At Group level, the total liquidity available in cash and overdraft limits as of 30 September 2022 was RON 479 mn., which is lower than the level recorded at the end of previous year quarter, 30 September 2021. The level of cash o
Slide 19: Dividend distribution
Dividend distribution Dividends Distributed gross dividends (FY 2014 – 2021) (RON mn) Gross dividend per share (RON) and Dividend yield(1) (%) 291.6 6.9% 7.3% 6.9% 244.7 251.4 245.4 247.5 246.1 247.9 6.8% 5.2% 6.0% 6.1% 0.8600 5.2% 0.7217 0.7415 0.7237 0.7300 0.7248 0.7300 152.8 0.4500 2014 2015 201
Slide 20: Preliminary Key Operational Indicators 2022 - Distribution
Preliminary Key Operational Indicators 2022 - Distribution - published on 27 February 2023 Distribution - Volumes of electricity distributed (TWh) Distribution - Electricity needed to cover 20.00 18.47 17.73 network losses (NL) (TWh) 17.48 18.00 2.50 16.00 2.10 2.12 13.81 13.37 12.87 2.00 1.88 14.00
Slide 21: Preliminary Key Operational Indicators - Supply
Preliminary Key Operational Indicators - Supply - published on 27 February 2023 Electricity Supply - Volumes of electricity supplied on retail market (TWh) 12.0 10.0 9.4 10.0 8.6 8.0 6.8 6.9 3.8 6.4 5.5 3.2 6.0 4.6 4.6 4.2 3.7 3.0 2.2 4.0 2.5 2.4 2.2 2.3 1.3 2.5 5.6 4.5 5.4 2.0 1.3 3.1 1.3 4.0 0.7 4
Slide 22: Electrica Group – Corporate Strategic Objectives (updated April 2022)
Status of Group’s Strategy Implementation Electrica Group – Corporate Strategic Objectives (updated April 2022) OBJECTIVES Targets Initiatives/update • 10% higher overall stock yield during 2022-2026 Increase of liquidity with the scope of inclusion in the FTSE Market value growth of than the result
Slide 23: Sustainability is one of the Values of Electrica
Status of Group’s Strategy Implementation Sustainability is one of the Values of Electrica Next steps: In 2022 we published, for the 6th consecutive year, our Group Elaboration of a Group Sustainability Sustainability report, based on Strategy the GRI reporting Standard Continuing to collect interna
Slide 24: Group structure
Group structure Electrica Group is the only Romanian group listed on the BSE & LSE and operates within production distribution, supply & energy service segments Distributie Energie Electrica 99.99% 2) Electrica Furnizare S.A. 99.99%2) Romania S.A. Distribution Operator Electricity and natural gas HQ
Slide 25: Main events in 12M 2022 and up to Feb 2023 (1/3)
Main events in 12M 2022 and up to 28 Feb 2023 (1/3) Main Corporate Events ELSA’s General Meetings of Shareholders: ❑ ELSA’s EGMS on 21 March 2022: ▪ Approved the empowerment of Electrica representative to participate in Societatea Electrica Furnizare SA (EFSA) EGMS for the approval of a total ceilin
Slide 26: Main events in 12M 2022 and up to Feb 2023 (2/3)
Main events in 12M 2022 and up to 28 Feb 2023 (2/3) Main Corporate Events ▪ During the meeting on May 5, 2022, the Board of Directors of the Company (CA) decided to revoke Mrs. Georgeta-Corina Popescu from the position of General Manager, without cause, starting with 16 May 2022 and the appointment
Slide 27: Main events in 12M 2022 and up to Feb 2023 (3/3)
Main events in 12M 2022 and up to 28 Feb 2023 (3/3) Main Corporate Events ❑ Other relevant events: ▪ On 3 January 2022, the mandate agreement as Chief Financial Officer of Mr. Mihai Darie, ceased upon the end of the 4-year duration. ▪ By the Decision No. H879/2022, of the Hungarian Energy and Public
Slide 28: Corporate Governance Bodies
Corporate Governance Bodies • Mr. Iulian Cristian Bosoanca – Chair • Mr. Gicu Iorga Board of Directors • Mr. Ion-Cosmin Petrescu Current • Mr. Adrian-Florin Lotrean Composition • Mr. Radu-Mircea Florescu • Mr. Dragos-Valentin Neacsu • Mr. George Cristodorescu • All board members are non-executive, e
Slide 29: Shareholder Structure at 31 December 2022
Shareholder Structure at 31 December 2022 Percent of share Shares with voting Shareholder Shares capital right Romanian State through the Ministry of Energy 169,046,299 48.7948% 49,7850% EBRD 17,355,272 5.0096% 5,1112% Electrica 6,890,593 1.9890% 0% Bank of New York Mellon - GDRs 2,164,816 0.6249% 0
Slide 30: Monthly volume and average price of Electrica’s shares and GDRs
Monthly volume and average price of Electrica’s shares and GDRs - 1 January – 28 February 2022 3,500,000 12.00 3,008,775 3,000,000 11.00 2,512,179 2,500,000 10.00 2,252,989 2,000,000 1,862,760 1,812,392 9.00 1,495,713 1,471,084 1,429,127 1,500,000 8.00 943,533 1,000,000 797,172 822,771 7.00 785,761
Slide 31: Glossary
Glossary LV Low Voltage AMR Automatic Meter Reading MP Merger Plan ANRE Romanian Energy Regulatory Authority MV Medium Voltage B2B Business to Business MWh MegaWatt hour B2C Business to Consumer NBV Net Book Value BET-TR Bucharest Exchange Trading - Total Return Index NL Network Losses BoD Board of
Slide 32: 2023 Financial Calendar
2023 Financial Calendar Publication of the 2022 financial annual results - documents for the Ordinary General Meeting of • 7 March Shareholders • 13 March Investor and analyst teleconference for presentation of 2022 consolidated financial results • 27 April Annual General Meeting of Shareholders • 2
Slide 33: 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 was prepared by Electrica for the presentation o
Slide 34: Q&A Executive Management of Electrica
Q&A Executive Management of Electrica Mr. Alexandru Chirita Chief Executive Officer Mr. Stefan Frangulea Chief Financial Officer 2017 Ms. Livioara2018Sujdea Chief Distribution Officer Mr. Mircea-Toma Modran Chief Information Officer 34 Public
Electrica Group — Romania Investor Days – London, March 2023 on 6ix