Slide 1: Investor presentation: 9M 2024 results
Investor presentation: 9M 2024 results 13 November 2024
Slide 2: Legal notice
Investor presentation / 9M 2024 results Legal notice This document has been prepared by AB “Ignitis grupė” (Ignitis Group) solely for informational purposes and must not be relied upon, disclosed or published, or used in part for any other purpose. The document should not be treated as investment ad
Slide 3: Agenda
Investor presentation / 9M 2024 results Agenda 1. Strategic highlights 4 2. Financial highlights 9 3. Outlook 2024 20 Darius Maikštėnas, CEO 4. Supplementary information 23 Jonas Rimavičius, CFO 3 /37
Slide 4: Strategic highlights
Investor presentation / Strategic highlights Strategic highlights 4 /37
Slide 5: Highlights
Investor presentation / Strategic highlights Highlights Strong performance and continued project delivery. Full-year Adjusted EBITDA guidance increased Strategy Sustainability Finance – Green Capacities Portfolio increase to 7.7 GW, – Green Share of Generation of 83.6%, – Adjusted EBITDA of 397.0 EU
Slide 6: Continued Green Capacities growth
Investor presentation / Strategic highlights Continued Green Capacities growth Portfolio increase to 7.7 GW, Secured Capacity – to 3.1 GW, and Installed Capacity – to 1.4 GW Green Capacities Portfolio split By technology Green Capacities Portfolio BESS 0.3 GW Biomass & WtE 0.1 GW GW Hydro 1.1 GW 7.4
Slide 7: Strategic milestones achieved
Investor presentation / Strategic highlights Strategic milestones achieved First power in Kelmė WF (300 MW) & Silesia WF II (137 MW), FID for Tume SF (174 MW) OFFSHORE WIND ONSHORE WIND SOLAR BESS Participating in 2nd Continued works in First power to the grid. FID for 174 MW Tume SF +38 MW of grid
Slide 8: Ongoing sustainability initiatives
Investor presentation / Strategic highlights Ongoing sustainability initiatives Continuous decrease in Scope 2 GHG emissions, TRIR below target and high rankings in ESG ratings Electricity Generated (net), Green GHG emissions Safety Share of Generation million t CO2 -eq TRIR TWh, % 89,0% 3,00 100,0%
Slide 9: Financial highlights
Investor presentation / Financial highlights Financial highlights 9 /37
Slide 10: Financial performance overview
Investor presentation / Financial highlights Financial performance overview KPIs1, EURm 9M 2024 9M 2023 ∆ Adjusted EBITDA 397.0 345.3 15.0% Adjusted EBITDA and Adjusted Net Profit growth was Adjusted Net Profit 213.3 193.0 10.5% driven by better results in Green Capacities and Networks segments. Adj
Slide 11: Adjusted EBITDA
Investor presentation / Financial highlights Adjusted EBITDA Growth driven by Green Capacities and Networks Adjusted EBITDA APM EURm Development across business segments 397.0 +15.0% 345.3 +26.5 EURm Launch of new assets and higher captured electricity prices, mainly due to the flexibility of 180.9
Slide 12: Green Capacities
Investor presentation / Financial highlights Secured Capacity Green Electricity Generated (net), Green Capacities GW Green Share of Generation TWh, % Remains the largest contributor to the Group‘s Adjusted EBITDA +0.2 GW 89,0% 83,6% 4,0 2.9 3.1 2,00 3,5 1,58 80,0% 0,01 3,0 2,5 0.7 0.7 1,50 1,25 0,14
Slide 13: Networks
Investor presentation / Financial highlights Distribution volumes Technological losses Networks TWh % Better results driven by higher RAB, WACC +4.4% 6,0% 8,0 5,0% +1.2 pp 7,0 6,0 7.0 7.3 +15.5% 4,0% 4.9% 5,0 3,0% 3.7% 4.7 4,0 -0.1 pp Adjusted EBITDA development APM 4.1 3,0 2,0% 2,0 2.0% 1.8% EURm 1
Slide 14: Reserve Capacities
Investor presentation / Financial highlights Capacity of services provided Reserve Capacities MW 0.0% 1,055 Strong performance due to utilised optionality to earn additional return in the market 1,055 164 164 on top of the regulated return Adjusted EBITDA development APM 891 891 EURm 31 Dec 2023 30
Slide 15: Customers & Solutions
Investor presentation / Financial highlights Customers & Solutions EBITDA decrease driven by natural gas Electricity retail sales Natural gas sales TWh TWh Adjusted EBITDA development APM EURm +0.1% +0.3% 4,84 4,84 4.67 4.68 -36.3% 1.98 20.9 (38.5) 1.26 9M 2023 9M 2024 9M 2023 9M 2024 6.5 11.1 Retai
Slide 16: Investments
Investor presentation / Financial highlights Investments Continuous large Investments into Green Capacities and Networks Investments APM EURm Key drivers 633.7 583.7 (7.9%) The main reason of decrease is mainly successful (26.7) EURm completion of several major projects: Silesia WF I 361,9 and Vilni
Slide 17: Net Working Capital
Investor presentation / Financial highlights Net Working Capital Decrease due to lower amounts receivable driven by decrease in gas-related revenue Key drivers Net Working Capital APM EURm Decrease in: (46.4%) – other amounts receivable (-39.1 EURm); – trade receivables (-37.3 EURm) due to lower ene
Slide 18: Free cash flow
Investor presentation / Financial highlights Free cash flow Negative FCF due to considerable Investments made Key drivers FCF APM EURm 70 50 30 10 9M 2023 9M 2024 Adjusted EBITDA (+397.0 EURm). Net Working Capital change (+59.0 EURm). -10 -30 -50 Investments (-583.7 EURm). -70 -90 -110 -130 (115.3)
Slide 19: Leverage metrics
Investor presentation / Financial highlights Leverage metrics Strong leverage metrics including FFO growth rate exceeding the growth of Net Debt Net Debt/Adjusted EBITDA LTM APM Net Debt development APM FFO LTM/Net Debt APM EURm times, % 5,0 50,0% 6.0 34.2% 4,5 38.8 46.5 583.7 4,0 29.4% 30,0% 3,5 1,
Slide 20: Outlook 2024
Investor presentation / Outlook 2024 Outlook 2024 20 /37
Slide 21: Guidance 2024
Investor presentation / Outlook 2024 Guidance 2024 Increased Adjusted EBITDA guidance to 480–500 EURm, driven by strong performance of the Green Capacities segment Updated Investments guidance to 750–900 EURm Adjusted EBITDA1 APM Investments APM EURm EURm 937.1 850–1,000 30.4 750–900 49.9 484,7 180.
Slide 22: Highlights
Investor presentation / 9M 2024 results Highlights Strong performance and continued project delivery. Full-year Adjusted EBITDA guidance increased Strategy Sustainability Finance – Green Capacities Portfolio increase to 7.7 GW, – Green Share of Generation of 83.6%, – Adjusted EBITDA of 397.0 EURm, +
Slide 23: Q&A
Investor presentation / 9M 2024 results Q&A 23 /37
Slide 24: Supplementary information
Investor presentation / Supplementary information Supplementary information 24 /37
Slide 25: Statement of profit or loss
Investor presentation / Supplementary information Statement of profit or loss EURm 9M 2024 9M 2023 Δ% Revenue from contracts with customers 1,610.0 1,837.3 (12.4%) Other income 11.1 4.3 158.1% Total revenue 1,621.1 1,841.6 (12.0%) Purchases of electricity, natural gas and other (982.9) (1,300.2) (24
Slide 26: Statement of financial position
Investor presentation / Supplementary information Statement of financial position EURm 30 Sep 2024 31 Dec 2023 Δ% EURm 30 Sep 2024 31 Dec 2023 Δ% Assets Equity and liabilities Intangible assets 323.1 315.4 2.4% Share capital 1,616.4 1,616.4 - Property, plant and equipment 3,773.9 3,362.5 12.2% Reser
Slide 27: Statement of cash flows
Investor presentation / Supplementary information Statement of cash flows EURm 9M 2024 9M 2023 Δ% EURm 9M 2024 9M 2023 Δ% Cash flows from operating activities Cash flows from financing activities Net profit for the period 214 212.6 0.7% Loans received 70.9 275.8 (74.3%) Adjustments for non-monetary
Slide 28: Reconciliations
Investor presentation / Supplementary information Reconciliations Reconciliation of Adjusted EBITDA EURm (0.8) EURm 397.8 20.1 397.0 (20.9) Reported Temporary Temporary Adjusted EBITDA regulatory regulatory EBITDA differences differences Reconciliation of Adjusted Net Profit EURm (0.7) EURm 214.0 0.
Slide 29: EBITDA and Net profit adjustments
Investor presentation / Supplementary information EBITDA and Net profit adjustments EBITDA adjustments Net profit adjustments EURm EURm 9M 2024 9M 2023 ∆ ∆, % 9M 2024 9M 2023 ∆ ∆, % EBITDA APM 397.9 348.2 49.6 14.2% Net profit 214.0 212.6 1.4 0.7% Adjustments Adjustments Temporary regulatory differe
Slide 30: Financing
Investor presentation / Supplementary information Financing Debt maturity schedule Liquidity reserve EURm EURm 873.3 110.4 779.7 300.0 300.0 300.0 557.6 570.0 187.6 131.2 109.0 205.3 209.7 13.6 53.2 54.7 53.2 53.2 53.3 52.8 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033+ 31 Dec 2023 30 Sep 2024 L
Slide 31: Generation mix and potential synergies
Investor presentation / Supplementary information Generation mix and potential synergies Electricity generated1 vs supplied in 2023 TWh 6.7 Gap enough to cover ~2.5 GW2 of new Green Capacities 1.2 Generated Electricity Supply Portfolio 1. Excluding opportunistic assets (Elektrėnai, which accounted f
Slide 32: Hedging levels
Investor presentation / Supplementary information Hedging levels1 Generation Portfolio hedging levels 100% 0 Hedge price2, EUR/MWh 90% 143 80% 133 -50 70% -100 60% 122 87 79 50% -150 40% 81% 73% -200 54% 30% 52% 52% Volumes hedged3,4, 20% -250 % 10% 0% -300 2023 2024 2025 2026 2027 1. Hedging levels
Slide 33: Industry overview
Investor presentation / Supplementary information Industry overview Electricity Consumption, TWh Finland TWh 9M 2024 9M 2023 ∆, % 46.9 EUR/MWh (-4.6%) 8.9 Nord Pool system 41.4 EUR/MWh (-14.6%) Lithuania 8.5 4.8% 37.8 EUR/MWh (-32.6%) Latvia 5.1 4.7 8.5% Estonia 5.8 5.8 0.8% TTF 60.0 31.9 EUR/MWh (-
Slide 34: Strategic plan 2024-2027: summary
Investor presentation / Supplementary information Strategic plan 2024-2027: summary Strategic ambitions and financial guidance Our strategic performance KPIs Green generation and green flexibility capacity installed: Total Investments, 2024–2027 3.0–4.0 EURbn - 2027 2.4–2.6 GW - of which share of In
Slide 35: Glossary
Investor presentation / Supplementary information Glossary Advanced Development Pipeline Projects which have access to the electricity grid secured through preliminary grid connection agreement (agreement signed and grid connection fee has been paid) Projects with one of the following: (i) awarded i
Slide 36: Abbreviations
Investor presentation / Supplementary information Abbreviations APM Alternative performance measures (link) kWh Kilowatt-hour B2B Business to business LTM Last twelve months B2C Business to consumer m Million BESS Battery energy storage system MW Megawatt CCGT Combined Cycle Gas Turbine Plant MWe Me
Slide 37: More about Ignitis Group Contacts
Investor presentation / 9M 2024 results More about Contacts Ignitis Group Reports & presentations IR@ignitis.lt Sustainability Strategy 37 /37