Naturgy Energy Group, S.a. · BME:NTGY
Naturgy Energy — FY2019 Earnings Presentation
33 slides from Naturgy Energy's earnings presentation, Feb 5, 2020
Slide 1: FY19 Results
Naturgy by FY19 Results 5 February 2020
Slide 2: Agenda
Agenda 1. FY19 results 2. Company initiatives
Slide 3: FY19 results
01 FY19 results
Slide 4: FY19 results: key figures
FY19 results Key figures (€bn, % vs. 2018) 1 Challenging energy scenario Ordinary EBITDA Ordinary Net Income -38% JKM/Brent 2 Acceleration of efficiency plan 4.7 +6% 1.4 +15% €380m annual since 2018 3 Strong investment in renewables and electricity Capex Net Debt >70% of growth & remunerated c
Slide 5: EBITDA evolution (€m)
EBITDA evolution (€m) + 6% 102 4,668 101 4,562 132 (47) 394 4,413 (106) (33) 4,019 Including the following FX impacts: €21m €16m -€74m €19m FX: -€18m EBITDA Non-ordinary Ordinary Gas & Power Infra. EMEA Infra. LatAm Infra. LatAm Corporate Ordinary Non-ordinary EBITDA FY18 items EBITDA South North &
Slide 6: Net Income evolution (€m)
Net Income evolution (€m) +15% 238 1,432 1,401 4,067 1,245 (51) (31) (2,822) Net Non-ordinary Ordinary Operations Others Ordinary Non-ordinary Net income items net net items 1 income FY18 income income FY19 FY18 FY19 Business growth translates into higher net income Note: 1. Of which: -€126m corresp
Slide 7: Sources and uses of cash (€bn)
Sources and uses of cash (€bn) 5.6 5.6 One-off restructuring costs 0.3 0.2 Divestments (5%) (4%) 2.0 Minorities & other (36%) Gross CF (95%)1 5.3 1.7 Dividends & share buy- back (30%) 1.7 O.w. 83% growth & Capex (30%) remunerated Cash sources Cash uses Balanced cash flow distribution Note: 7 1. CF f
Slide 8: Net debt evolution (€m)
Net debt evolution (€m) Net Debt/ordinary EBITDA Debt structure optimization 3.5x 3.3x 15,309 2,013 197 15,268 1,607 Corporate liability management ~€700m 1,720 International BU push down ~€1.8bn (5,275) (303) Green financing Spain ~€500m Total ~€3bn Net debt Gross Disposals Dividends, Capex1 Minori
Slide 9: Shareholder remuneration
Shareholder remuneration DPS (€/sh.) Share buy-back 0.29 1st interim 1st tranche completed Paid €400m July-19 (June 2019) +5% vs 2018 2nd interim 1 0.47 Paid 1.37 Share cancellation November-19 16.6m (August 2019) shares 0.60 2019 final Proposal Second €400m tranche as of March-20 ~€135m the end
Slide 10: FY19 results by business unit
FY19 results by business unit
Slide 11: Gas & Power
Gas & Power EBITDA evolution (€m) Highlights 190 Gas, Power & services sales: higher margins in power 1,441 supply partially offset by lower gas margins 93 1,453 77 1,420 21 1,360 (184) International LNG: lower margins and volumes (116) impacted by energy scenario vs. better conditions in 2018 I
Slide 12: Infrastructure EMEA
Infrastructure EMEA EBITDA evolution (€m) Highlights Spain gas networks: stable activity and business 63 25 1,981 47 44 1,923 optimization 1,802 1,849 (58) Spain electricity networks: new investments and other Including the following FX impacts: regulated revenues along with lower interruption t
Slide 13: Infrastructure South LatAm
Infrastructure South LatAm EBITDA evolution (€m) Highlights 40 947 59 17 938 All businesses negatively impacted by FX 846 (15) (9) 55 791 Chile electricity: regulated revenues and business Including the following FX impacts: optimization - €14m - €1m - €6m - €53m Chile gas: higher margins and
Slide 14: Infrastructure North LatAm
Infrastructure North LatAm EBITDA evolution (€m) Highlights 42 377 376 Mexico gas: tariff update, higher supply margins and opex 60 (1) optimization 43 275 Panama electricity: new regulatory period and higher demand as a result of higher temperatures 232 Including the following FX impacts: €11m
Slide 15: Summary 2019 and Outlook 2020
Summary 2019 and Outlook 2020
Slide 16: Summary 2019
Summary 2019 2019 targets met… …amid challenging scenario… …thanks to company initiatives €bn Actual vs. budgeted scenario1 EBITDA +11% Brent Acceleration of efficiency plan 4.7 Ordinary 4.6 Reported . -38% JKM/Brent Portfolio derisking Step up in renewables Net Income +11% CO2 Balanced capital all
Slide 17: Outlook 2020
Outlook 2020 New renewables coming into operation ( >+700MW additions 9M19-2020E) Stability in LNG thanks to contract management (sales contracted: 90%) Gas & Power Improvement in supply supported by lower procurement costs (Algeria, Norway…) New electricity networks regulatory framework (~€
Slide 18: Company initiatives
02 Company initiatives
Slide 19: We are becoming more efficient
We are becoming more efficient Ordinary opex base evolution1 (€bn) Efficiencies (€m) Accumulated efficiencies ~380 ~500 Original 2.5 target2 In 2019 In 2020E 2.3 ~120 2.0 1.9 ~270 ~110 FY17 FY18 FY19 2020E 2022E 2018 2019 2020E Meeting efficiencies target 2 years in advance Note: 19 1. Including acc
Slide 20: We are managing our risks (1/2)
We are managing our risks (1/2) International LNG Contracted sales1 at beginning of period International LNG EBITDA (€m) Energy scenarios in two challenging years Spot prices (USD/MMBtu) 25% 344 10 276 8 <50% 80% 90% 6 4 2 2017 2019 2020 ene feb mar abr may jun jul ago sep oct nov dic 2017 2019 JKM
Slide 21: We are managing our risks (2/2)
We are managing our risks (2/2) Spain gas networks Illustrative cash-flow Manageable levers to mitigate impacts Mitigation levers €m 1 2 1 FY19 operating expenses ~240 2 Annual avg. growth capex ~200 FCF Proposed FCF Opex Growth FCF post pre-adjust. regulatory post-adjust. measures Capex mitigation
Slide 22: We are investing supporting the energy transition
We are investing supporting the energy transition FY19 growth & remunerated capex Installed capacity (GW) 5.2 Gas 4.5 25% 3.7 3.5 Renewables1 Renewables ~1.4bn 40% 2.0 Coal2 1.8 1.8 0.0 Electricity 35% 2017 2018 2019 2020 >70% of growth & remunerated capex on Increasing renewable footprint renewable
Slide 23: We are advancing in our ESG commitments (1/2)
We are advancing in our ESG commitments (1/2) Direct GHG emissions (MtCO2eq) New Global Environmental Policy & Plan 18.3 -16% New targets Approval of new Environmental Plan 2018-22 compatible 1.5ºC 15.4 with a scenario Eco-efficiency and resource consumption Water consumption -24% progress 2018 2019
Slide 24: We are advancing in our ESG commitments (2/2)
We are advancing in our ESG commitments (2/2) Social and Governance highlights Leadership in ESG indexes Approval of updated Corporate Responsibility & Human Rights policies by BoD Global 82 leader 3 UNE Compliance Policies update Maximum 19601 AAA rating % auditing Consolidation of the responsible
Slide 25: We pursue a balanced cash flow distribution
We pursue a balanced cash flow distribution Current growth optionality (>30% of FFO)… …reinforced with levers for additional growth Current growth optionality Additional efficiencies Leverage capacity FFO Committed cash Scenario improvement Asset rotation dividend Dividend to Lower cost
Slide 26: Conclusions
Conclusions We are becoming more efficient We are managing our risks We are investing supporting energy transition We are advancing in our ESG commitments We pursue a balanced cash flow distribution Continued and sustainable value creation 26
Slide 27: FY19 results Q&A
Naturgy by FY19 results Q&A
Slide 28: Appendix
Naturgy y Appendix
Slide 29: Alternative Performance Metrics
Alternative Performance Metrics 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 Alternative Performance Metrics (APM), which are view
Slide 30: Alternative Performance Metrics
Alternative Performance Metrics Alternative performance Reconciliation of values Definition and terms Relevance of use metrics 31 December 2019 31 December 2018 Current and non-current financial debt Gross financial debt (5) - "Cash and cash Euros 15,309 million (7) = 17,073 - 1,716 Net financial de
Slide 31: ESG metrics
ESG metrics ESG metrics FY19 FY18 Change Comments Health and safety Lost time (LT) incidents (1) units 14 16 -12.5% Improving metrics vs. FY18 Stable vs. 2018 although with lower accidents and working hours and below LT Frequency rate (2) units 0.12 0.12 0.0% sector average Environment GHG Emissions
Slide 32: 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 33: 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