Slide 1: Results Presentation
UuUMNnEne Powering Uganda Results Presentation
Slide 2: Contents
Contents 1. Macroeconomic Update 2. Sector Update 3. Operational Performance 4. Financial Overview 5. Key Focus Areas Umeme H1 2024 Results Presentation ---------------------------- 2
Slide 3: Uganda Economic Update
Uganda Economic Update Annual growth averaged 6.7% in H1 2024, CBR lowered to 10% in Aug 24 projected at 6% to 6.5% for FY24/25 supported by from 10.25% where it had been stronger investment in extractive sector and since Apr 24 government intervention programs. Increasing debt to GBP ratio Election
Slide 4: Electricity Sector Updates
Electricity Sector Updates • Karuma Hydro Power Plant COD - 1st July 2024. • Generation Capacity - 2,048 MW • Maximum peak demand 1,033 MW (up from 919 MW 2023) and domestic peak demand of 927 MWh. • West Nile grid connection – August 2024 • 132kV Mirama –Kabale line synchronization – December 2024
Slide 5: Investing in the Distribution System
Investing in the Distribution System Load growth and quality of supply projects • Matugga switching station • Hoima Substation Upgrade • Owen Falls Substation upgrade • West Bank Jinja switching station • Dedicated lines to Regional Referral Hospitals • Mbale City supply reliability project • Transf
Slide 6: Growing Electricity Demand: Peak Demand
Growing Electricity Demand: Peak Demand Maximum System Peak Demand Uganda’s Economic Growth Rate 12% 1,100 1,033 9% 1,000 8% 919 7% 6.5% 900 843 6% 5.3% 794 4.6% 800 5% 737 4% 3.5% 700 3% 2.6% 600 2% 500 1% 0% 400 2020 2021 2022 2023 2024F 300 2020 2021 2022 2023 2024 YTD Source –UETCL Umeme H1 2024
Slide 7: Growing Electricity Demand: +11.7 %
Growing Electricity Demand: +11.7 % GWh +11.7% 2,269 2,300 H1 2024H1 2023 2,200 Customer Category Growth % (GWh) (GWh) 2,100 2,031 2,000 Domestic 504.8 431.2 17.1% 1,900 1,875 Commercial 255.4 223.5 14.3% 1,800 1,720 1,700 Street Lighting 1.6 1.2 33.3% 1,600 1,538 1,500 Industrial – Medium 316.5 288
Slide 8: Customer Numbers
Customer Numbers ('000) Pre-paid Post-paid • 139,196 new connections were made in H1 2024 2,200 2,081 2,000 • 99 % of customers are now on prepaid metering accounting 1,830 1,800 1,693 for 35% of revenues. 30,000 customers on postpaid billing 1,600 1,507 1,599 account for 65% of revenues 1,400 1,200
Slide 9: Distribution Efficiency – Reducing Energy Losses
Distribution Efficiency – Reducing Energy Losses Half Year Energy Losses (%) • Loss-reduction positively impacted by 19% enhanced field 18% 18.0% activities, new customer 18% 17.5% connections and 17.1% 17% improved supply 17% 16.7% reliability. 16.1% 16% • Losses remain critical 16% for financial s
Slide 10: Distribution Efficiency - Revenue Collections
Distribution Efficiency - Revenue Collections Half Year Revenue Collections (%) % 102 ▪ The gap in collection attributed the lag in GoU entities collections. Company is engaging Government 101 100.3% Ministries, Departments and Agencies to recover 100 99.8% outstanding arrears that have increased ov
Slide 11: Safety
Safety Network related fatalities No. Non-network related fatalites (Illegal) • We recorded 10 fatal accidents attributed mainly 22 to network interferences and illegal operations by 22 unauthorized people. 20 18 18 • We are continuing with our public awareness 16 initiatives and programs aimed at r
Slide 12: Systems
Systems • UCIS (Yaka Management System) • GNIS, SCADA,OMS • Billing and Yaka – TID Rollover • Call center management • HR Connect • EDRIMS • Fleet management system Umeme H1 2024 Results Presentation ---------------------------- 21
Slide 13: People
People Headcount Turnover 3,299 Rate 1.97% Training and Retention development strategy Profile: Partnerships Average Age – 36yrs Gender – 16% Female, 84% Male Umeme H1 2024 Results Presentation ---------------------------- 21
Slide 14: Financial Overview (UShs bn)
Financial Overview (UShs bn) Income Statement H1 2024 HI 2023 %ch Revenue 1,151.80 1075.7 7.1% ▪ Revenues increased by 7.1% to Ushs 1,152 Cost of Sales (742.1) (719.8) 3.1% billion due to increased electricity sales volume, underlying tariffs and provision of Gross Profit 409.7 355.9 15.1% construct
Slide 15: Financial Overview ($m)
Financial Overview ($m) Income Statement H1 2024 H1 2023 %ch ▪ Revenue increased to $301m due to Revenue 300.8 289 4.1% increased electricity sales volume, underlying Cost of Sales (193.8) (193.4) 0.2% tariffs and provision of construction services. Gross Profit 107 95.6 11.9% Operating Expenses (38
Slide 16: Natural End of the Concession – Process Updates
Natural End of the Concession – Process Updates • Audit of the LA&A by the Auditor General has commenced • Beyond 30 days, interest charged on buy out amount as • Draft final report on the Buy Out Amount expected by year below: end 10% p.a. 30 – 45 days after concession termination date, • The buyou
Slide 17: 2024 – 2025 Focus Areas
2024 – 2025 Focus Areas Deliver on Manage the Secure the Buyout Post Concession Performance Transition Amount Considerations • Shareholder Value • Coordination with GOU ▪ Audit process ▪ Governance • Service • People ▪ Payment ▪ Future options analysis • Network • Assets and systems ▪ Retransfer of
Slide 18: Investor Relations Calendar
Investor Relations Calendar 10th October 2024: Dividend Book Closure Date 31st October: Dividend Payment Date Umeme H1 2024 Results Presentation ---------------------------- 21
Slide 19: Community Donations
Community Donations Corporate Social Responsibility School Safety Clubs Cure Run Swimming Competition Youth Skilling Health Camps U-green Community engagements Umeme H1 2024 Results Presentation ---------------------------- 17
Slide 20: Question & Answer
uUMnEeEene Powering Uganda Question & Answer