Naturgy Energy Group, S.a. · BME:NTGY
Naturgy Energy — 9M20 Earnings Presentation
25 slides from Naturgy Energy's earnings presentation, Oct 28, 2020
Slide 1: 9M20 Results
9M20 Results 28 October 2020
Slide 2: Scenario, Consolidated results, Results by business unit, Summary
Scenario Consolidated results Results by business unit Summary
Slide 3: Scenario
Scenario
Slide 4: Electricity and gas demand evolution
-20% -10% -20% 0% -30% 0% 10% -10% 10% 6-Jan 27-Jan 6-Jan 27-Jan 1.1 1. Scenario 17-feb 17-Feb 09-mar 9-Mar Spain 30-mar 30-Mar Spain Electricity 20-Apr 20-Apr 11-may 11-May 01-jun 01-Jun 22-jun 22-Jun Gas Source: Company data 13-jul 13-jul 03-ago 03-ago 24-ago 24-ago 8% 7% 14-sep 14-sep -20% -10% 0
Slide 5: Energy markets evolution (avg. 9M20 vs. 9M19)
1. Scenario 1.2 Energy markets evolution (avg. 9M20 vs. 9M19) Spanish electricity market Brent (USD/bbl) NBP (USD/MMBtu) (Pool) (€/MWh) 64.7 37% 46% 49.9 36% 4.6 31.9 40.8 2.5 9M19 9M20 9M19 9M20 9M19 9M20 Henry Hub (USD/MMBtu) JKM (USD/MMBtu) CO2 (€/t) 30% 46% 4% 2.7 6.1 24.8 23.8 1.9 3.3 9M19 9M20
Slide 6: FX evolution (avg. 9M20 vs. 9M19)
1. Scenario 1.3 FX evolution (avg. 9M20 vs. 9M19) Chile Brazil Argentina 14% 23% 35% 0.0013 0.23 0.0011 0.02 0.18 0.01 9M19 9M20 9M19 9M20 9M19 9M20 Mexico Panama 11% 0% 0.05 0.89 0.89 0.04 9M19 9M20 9M19 9M20 Widespread Ongoing andFX unprecedented weakness drop of commodity prices Source: Bloomberg
Slide 7: Consolidated results
Consolidated results
Slide 8: Key operating highlights
2. Consolidated results 2.1 Key operating highlights Key figures (€m, % vs. 9M19) Ordinary EBITDA Ordinary Net Income Liberalised activities impacted by continued pressure on gas prices Regaining competitiveness through contract renegotiations 3,002 -12% 696 -31% Growing renewable exposure and ambit
Slide 9: EBITDA evolution by business unit (€m)
2. Consolidated results 2.2 EBITDA evolution by business unit (€m) 12% 91 3,416 3,325 5 3,002 (186) 2,774 (87) (127) (19) (228) Including the following FX impacts: -€7m - -€127m -€17m FX: -€151m EBITDA Non-ordinary Ordinary Gas & Power Infra. EMEA Infra. LatAm Infra. LatAm Corporate Ordinary Non-ord
Slide 10: Ordinary EBITDA evolution by key drivers (€m)
2. Consolidated results 2.3 Ordinary EBITDA evolution by key drivers (€m) 3,416 12% (95) 18 82 3,002 (151) (57) (51) (6) (154) Ordinary Demand FX EMPL Regulation Tariff/ Other Contract Opex Ordinary EBITDA step down prices renegotiations EBITDA 9M19 9M20 Demand, FX and energy scenario drive down EBI
Slide 11: Net Income evolution (€m)
2. Consolidated results 2.4 Net Income evolution (€m) 106 1,007 901 31% 76 696 (387) 490 (206) Net Non-ordinary Ordinary Operations Financial result Ordinary Non-ordinary Net income items net & others net items income 9M19 income income 9M20 9M19 9M20 Improved financial results offset by weaker oper
Slide 12: Cash flow and net debt evolution (€m)
2. Consolidated results 2.5 Cash flow and net debt evolution (€m) Cash flow Net debt 9M20 vs. 9M19 Ordinary EBITDA 3,002 -12% Non-ordinary items (228) (%): avg. cost of debt2 EBITDA 2,774 -17% Taxes (94) 3.2% 2.7% Net interest cost (423) Other non-cash items (210) 15,268 1,062 14,727 158 Funds from
Slide 13: Results by business unit
Results by business unit
Slide 14: Gas & Power
3. Results by business unit Gas & Power EBITDA evolution by business line (€m) Highlights 974 8 982 Gas, Power & services sales: higher power margins offset 44 796 by lower demand and margin pressure in gas (127) 696 (76) (27) (100) International LNG: depressed price environment not yet - - - -€7m b
Slide 15: Infrastructure EMEA
3. Results by business unit Infrastructure EMEA EBITDA evolution by business line (€m) Highlights 57 1,480 1,423 1,393 1,316 Spain gas networks: lower demand as result of mild (18) (19) (50) (77) weather and economic slowdown linked to COVID-19 Spain electricity networks: lower financial remuneratio
Slide 16: Infrastructure South LatAm
3. Results by business unit Infrastructure South LatAm EBITDA evolution by business line (€m) Highlights 722 717 Chile electricity: tariff indexation not enough to (5) 590 579 (59) (20) (34) compensate lower demand and energy losses (14) (11) -€33m -€19m -€45m -€30m Chile gas: tariff indexation offs
Slide 17: Infrastructure North LatAm
3. Results by business unit Infrastructure North LatAm EBITDA evolution by business line (€m) Highlights 280 1 281 262 260 Mexico gas: results mostly impacted by FX and, to a (6) (13) (2) lower extent, by lower demand -€17m - Panama electricity: lower demand as result of FX: -€17m confinement EBITDA
Slide 18: Summary
Summary
Slide 19: Summary
4. Summary 4.1 Summary Liberalised activities impacted by continued pressure on gas prices Regaining competitiveness through contract renegotiations Growing renewable exposure and ambitions Becoming one of the largest renewable players in Australia Resilient results in Infra EMA despite scenario, re
Slide 20: Appendix
Appendix Naturgy y
Slide 21: Alternative Performance Metrics (i/ii)
Appendix: 1. Alternative Performance Metrics 1 Alternative Performance Metrics (i/ii) Naturgy's financial disclosures contain magnitudes and metrics drafted in accordance with International Financial Reporting Standards (IFRS) and others that are based on the Group's disclosure model, referred to as
Slide 22: Alternative Performance Metrics (ii/ii)
Appendix: 1. Alternative Performance Metrics 1 Alternative Performance Metrics (ii/ii) Alternative performance Reconciliation of values Definition and terms Relevance of use metrics 30 September 2020 30 September 2019 Current and non-current financial debt Gross financial debt - "Cash and cash Euros
Slide 23: ESG Metrics
Appendix: 2. ESG Metrics 2 ESG Metrics ESG metrics 9M20 9M19 Change Comments Health and safety Significant improvement linked to the implementation of the Plan Naturgy 2019, as Accidents with lost time (1) units 3 12 -75.0% well as the impact from remote work during 2020 Reflects the reduction in ac
Slide 24: Disclaimer
Disclaimer This document is the property of Naturgy Energy Group, S.A. (Naturgy) and has been prepared for information purposes only. This communication contains forward-looking information and statements about Naturgy. Such information can include financial projections and estimates, statements reg
Slide 25: Capital Markets contact
This presentation is property of Naturgy Energy Group, S,A, Both its content and design are for the exclusive use of its personnel, ©Copyright Naturgy Energy Group, S,A CAPITAL MARKETS tel, 34 912 107 815 e-mail: capitalmarkets@naturgy,com website: www,naturgy,com