Societatea Energetica Electrica S.a. · BVB:EL

Societatea Energetica Electrica — Q3 2015 Earnings Presentation

29 slides from Societatea Energetica Electrica's earnings presentation, Nov 19, 2015

  1. Slide 1: Presentation of Q3 2015 Results

    Presentation of Q3 2015 Results Bucharest, 19 November 2015

  2. Slide 2: Main events

    Main events  Main resolutions of the November 10th,2015 and September 9th,2015 General Meetings of Shareholders:  mandating the Board for restarting negotiations with FP for acquiring the minority shareholdings in its DSOs and supply company, then come back to the GMS for a final approval of the t

  3. Slide 3: Agenda

    Agenda I. Executive Summary II. Distribution overview III. Supply overview IV. Corporate Governance 3

  4. Slide 4: Electrica at a glance

    Electrica at a glance Executive summary Electrica Group  Market leader in distribution and supply of electricity in Romania  Distribution: Owns 78% in three subsidiaries operating on the electricity distribution market on a concession ending in 2054 (option to extend by 24.5 years) and 100% in a s

  5. Slide 5: Electrica Significant Subsidiaries

    Electrica Significant Subsidiaries Executive summary 22% 78% 100% Electrica Furnizare (EF) Electrica Distributie Electrica Distributie Electrica Distributie Electrica Serv (ES)  3.6 mn consumers1 Transilvania Nord (EDTN) Transilvania Sud (EDTS) Muntenia Nord (EDMN)  Revenues3: RON 262 mn  Market

  6. Slide 6: Leading Player in Distribution and Supply

    Leading Player in Distribution and Supply Executive summary Distribution Supply Volumes Distributed in 2014 Volumes Supplied in 2014 15% EDMN Electrica 21% EDTS Others 13% EDTN 40.5 TWh1 44.5 TWh Others 60% 12% 79% Electrica: 39.8% Area Covered by Distribution Network Regulated Market Sales in 2014

  7. Slide 7: Background and Basis of Preparation for the Financials

    Background and Basis of Preparation for the Financials Executive summary  Historical consolidated financial statements prepared in accordance with International Financial Reporting Background Standards as endorsed by the European Union (IFRS-EU)  The presentation currency is Romanian New Leu (RON)

  8. Slide 8: Summary Consolidated Financials

    Summary Consolidated Financials Executive summary Revenues Strong Adjusted EBITDA Growth and Margin Performance Revenues (RON mn) Adjusted EBITDA (RON mn) and Adjusted EBITDA Margin (%) 18% 19% 17% 20% 5,383 5,044 414 12% 15% 272 3,965 870 3,657 765 245 10% 219 649 662 5% 4,969 4,772 3,438 3,719 0%

  9. Slide 9: Working Capital and Current Assets

    Working Capital and Current Assets Executive summary Net Working Capital (2013–2015) (RON mn) Trade Receivables Inventories Trade Payables Net Working Capital (1) 34 582 24 27 21 1,088 410 555 530 744 781 800 540 361 291 250 2013 Q3 2014 2014 Q3 2015 Net Current Assets (2013–2015) (RON mn) Current A

  10. Slide 10: IPO proceeds

    IPO proceeds Executive summary  The Company’s strategy was to place the IPO money through the Underwriter banks, member of the Syndicate, in risk-free titles and deposits, on short-term, until the new Board of Directors will be able to take medium long term decisions Cashing from IPO: 4 July Cashin

  11. Slide 11: Agenda

    Agenda I. Executive Summary II. Distribution overview III. Supply overview IV. Corporate Governance 11

  12. Slide 12: Distribution Market Overview

    Distribution Market Overview Distribution overview Key Facts Romanian Electricity Distribution Map  Electricity distribution in Romania is currently controlled by eight licensed electricity distribution companies EDTN EMD  Each company is responsible for the exclusive distribution of electricity w

  13. Slide 13: Distribution Highlights

    Distribution Highlights Distribution segment overview  Q3 2015 Regulated asset base (RAB) of RON 4,213 mn  190,972 km of voltage lines (8,863 km HV; 45,908 km MV; 136,202 km LV) (Q3 2015)  Area of operation: 97,996 km2, 40.8% of Romania’s territory  3.64 mn users (Q3 2015)  12.7 TWh of electric

  14. Slide 14: EDTS Overview

    EDTS Overview Distribution segment overview Overview  Electrica Distributie Transilvania Sud (EDTS) is a Brasov based distribution subsidiary of Electrica  National market share (Volume): 13.2% (2014 ANRE Report)  Area covered: 34,071 km2  Users: 1.1 mn (Q3 2015)  Financials commentary  Modera

  15. Slide 15: EDTS Overview (Cont'd)

    EDTS Overview (Cont’d) Distribution segment overview Costs due to Network Losses Network Losses Network Losses (RON mn) (GWh) (%) 12.20% 11.70% 11.70% 11.76% 813 11.20% 11.40% 173 785 10.42% 163 9.50% 546 543 112 110 Reg. Realised Reg. Realised Reg. Realised Reg. Realised 2013 Q3 2014 2014 Q3 2015 2

  16. Slide 16: EDTN Overview

    EDTN Overview Distribution segment overview Overview  Electrica Distributie Transilvania Nord (EDTN) is a Cluj-Napoca based distribution subsidiary of Electrica  National market share (Volume): 11.6% (2014 ANRE Report)  Area covered: 34,160 km2  Users: 1.2 mn (Q3 2015)  Financials commentary 

  17. Slide 17: EDTN Overview (Cont'd)

    EDTN Overview (Cont’d) Distribution segment overview Costs due to Network Losses Network Losses Network Losses (RON mn) (GWh) (%) 11.60% 11.70% 11.70% 11.34% 11.48% 138 623 621 10.50% 10.65% 129 9.50% 446 91 419 85 Reg. Realised Reg. Realised Reg. Realised Reg. Realised 2013 Q3 2014 2014 Q3 2015 201

  18. Slide 18: EDMN Overview

    EDMN Overview Distribution segment overview Overview  Electrica Distributie Muntenia Nord (EDMN) is a Ploiesti based distribution subsidiary of Electrica  National market share (Volume): 15% (2014 ANRE Report)  Area covered: 29,765 km2  Users: 1.3 mn (Q3 2015 )  Financials commentary  Slight d

  19. Slide 19: EDMN Overview (Cont'd)

    EDMN Overview (Cont’d) Distribution segment overview Costs due to Network Losses Network Losses Network Losses (RON mn) (GWh) (%) 210 979 12.38% 200 939 12.20% 11.50% 10.78% 10.78% 10.44% 10.82% 9.50% 131 133 642 655 Reg. Realised Reg. Realised Reg. Realised Reg. Realised 2013 Q3 2014 2014 Q3 2015 2

  20. Slide 20: Electrica Serv Financials

    Electrica Serv Financials Distribution segment overview Description Revenues (RON mn)  Electrica Serv, a wholly-owned subsidiary of Electrica, provides equipment maintenance, repair and other ancillary services to EDMN, EDTN and EDTS 396 395  As part of its growth strategy, Electrica Serv intends

  21. Slide 21: Agenda

    Agenda I. Executive Summary II. Distribution overview III. Supply overview IV. Corporate Governance 21

  22. Slide 22: Supply market overview

    Supply market overview Supply overview Key Facts Market Share All Users 2014  Supply market consists of Regulated and Competitive segments: Electrica Furnizare 20.8%  The regulated segment comprises 5 companies, integrated Others (<4% individually) within the same group as the corresponding distri

  23. Slide 23: Supply business overview

    Supply business overview Supply overview Volume of Electricity Supplied on Retail Market Growing Number of Consumers (TWh) Consumers (‘000’s) Competitive Regulated Regulated Competitive 3,566 3,582 3,590 3,604 9.70 67 74 9.24 34 87 2.80 7.38 6.81 3.42 2.42 3.39 3,532 3,515 3,516 3,518 6.90 5.82 4.39

  24. Slide 24: Supply Segment Overview

    Supply Segment Overview Supply overview Overview Coverage  Electrica Furnizare is the supply company of Electrica Electrica Furnizare  Market share: 21% (2014 ANRE Report)  Consumers: 3.60 mn (Q3 2015) Competitive Market Regulated Market  Financials commentary:  Significant decrease in EBITDA a

  25. Slide 25: Agenda

    Agenda I. Executive Summary II. Distribution overview III. Supply overview IV. Corporate Governance 25

  26. Slide 26: Shareholder Structure

    Shareholder Structure Free float is 51.2% after the IPO, with the Romanian State retaining the rest. Before the IPO After the IPO – Structure as of October 15th 2015 5.04% 100% 31.76% 48.78% 5.77% 8.66% Romanian State Romanian State Other Shareholders EBRD BNY MELLON DRS - London Stock Exchange Lega

  27. Slide 27: Current Structure of the Board of Directors and its Committees

    Current Structure of the Board of Directors and its Committees  Victor Cionga – Chairman  Arielle Malard de Rothschild Board  Michael Boersma Composition  Cristian Busu  Ioana Alina Dragan – temporary board member, appointed on Nov. 19th 2015 until Dec 14th 2015  All board members are non-exec

  28. Slide 28: 2015 Financial Calendar

    2015 Financial Calendar  February 16 Publication of the annual preliminary results (standalone) - 2014  April 27 General Meeting of Shareholders for the approval of the 2014 annual financial results  April 28 Release of 2014 Annual Report - http://www.electrica.ro/en/investor-relations/  April 3

  29. Slide 29: Q&A

    Q&A ir@electrica.ro http://www.electrica.ro/en/investor-relations 29

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