Ignitis Grupe Ab · OMXVSE:IGN1L
Ignitis Grupe Ab — 9M 2020 Earnings Presentation
37 slides from Ignitis Grupe Ab's earnings presentation, November 2020
Slide 1: Investor presentation First nine months 2020
Investor presentation First nine months 2020
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements, including but not limited to, the statements and expectations contained in the "Outlook 2020” section of this presentation. Statements herein, other than statements of historical fact, regarding our future results of operation
Slide 3: Agenda
Agenda I Overview II Financial highlights III Outlook 2020 IV Q&A Darius Maikštėnas Darius Kašauskas Chairman of the Board, Member of the Board, CEO CFO 3
Slide 4: I Overview
I Overview Darius Maikštėnas, CEO II Financial highlights III Outlook 2020 IV Q&A
Slide 5: Ignitis Group
Ignitis Group A sustainable energy leader in the Baltics One of the largest utilities and renewable energy companies in the Baltics region Largely regulated / contracted business with strong cash flow generation Attractive growth opportunities in green generation and distribution networks Ignitis Gr
Slide 6: The largest Baltic IPO
Ignitis Group The largest Baltic IPO 450EURm solely new shares offer 54,283,757 20,000,000 74,283,757 Pre-IPO share capital New shares issued Post-IPO share capital 18,130,699 1,869,301 Shares and GDRs to Retail tranche institutional investors (LT, LV, EE) Shareholder structure after IPO Retail inve
Slide 7: Highlights
Highlights Focused actions to seize tomorrow’s opportunities Resilient financial performance Strategy delivery Sustainability is at the core of strategy Strengthened financial position Increased track record ESG risk rating obtained − Landmark IPO − Kaunas CHP (24 MWe, 70 MWth) became − Sustainalyti
Slide 8: Business segments
Business segments Creating an Energy Smart world Customers & Networks Green Generation Flexible Generation Solutions Ensuring resilient and efficient Developing and operating Ensuring reliable energy Creating innovative solutions energy distribution network to wind, hydro, waste-to-energy, generatio
Slide 9: Networks
Networks Natural monopoly of electricity and gas distribution networks in Lithuania servicing ~100% of the market Q3 2020 highlights Key metrics − In October, National Energy Regulatory 9M 9M ∆,% Council approved electricity and natural gas 2020 2019 distribution price caps for 2021. Adjusted EBITDA
Slide 10: Green Generation
Green Generation Regional leader in green energy with diversified 1.5 GW portfolio and tangible pipeline to facilitate future growth Q3 2020 highlights Key metrics − In August, State significance Kaunas CHP (24 MWe, 70 9M 9M MWth) started its operations. ∆,% 2020 2019 − With the first fire, Vilnius
Slide 11: Green Generation: Deals underpinning future growth
Green Generation Deals underpinning future growth The largest solar PV portfolio deal in the region Offshore market presence − SPA signed for up to 170MW − Ocean Winds selected as a Polish Solar PV portfolio partner for the development of offshore wind farm projects − Partnership with experienced de
Slide 12: Diversified green energy portfolio
Diversified green energy portfolio Estonia Operating Tuuleenergia Capacity Capacity Subsidy Subsidy End of Name COD (MWe) (MWth) scheme (EUR/MWh) subsidy Kruonis PSHP 900 – 1992-19981 – – – Kaunas HPP 101 – 19592 – – – Kaunas CHP 24 70 2020 – – – Eurakras 24 – 2016 FiT 71 2027 Vėjo gūsis 19 – 2008-2
Slide 13: Target to reach 1.6-1.8 GW green capacity by 2023
Green Generation Target to reach 1.6-1.8 GW installed green generation capacity by 2023 and 4 GW by 2030 4 GW 1.1-1.4 GW Up to Kaunas WtE CHP became 225 MW operational in 700 MW Aug-2020 Up to 1.6-1.8 GW 170 MW 0.1-0.3 GW6 1.1 GW 186 MW 63 MW Operational Operational POM4 MŽK5 + + under under VKJ3 co
Slide 14: Flexible Generation
Flexible Generation Largest flexible generation portfolio in Lithuania with 1.1 GW capacity ensuring system stability Q3 2020 highlights Key metrics − Continued to contribute to the synchronization 9M 9M ∆,% of the Baltic States with the network system of 2020 2019 Continental Europe. Adjusted EBITD
Slide 15: Customers & Solutions
Customers & Solutions Core energy supply and trading complemented by Energy Smart solutions for households and businesses Q3 2020 highlights Key metrics − Deregulation of B2C energy supply started and to be 9M 9M finished in 2023: ∆,% 2020 2019 − Current electricity price regulation will be Adjusted
Slide 16: Sustainability is at the core of strategy
Sustainability is at the core of strategy Recognized by Sustainalytics ESG rating ENVIRONMENTAL SOCIAL GOVERNANCE Sustainability targets and commitments Global goals Widely recognised Supporting the principles of Global Compact ▪ Awarded best investor relations by a bond ▪ Aim to reach 4.0 GWe1 of G
Slide 17: II Financial highlights
I Overview II Financial highlights Darius Kašauskas, CFO III Outlook 2020 IV Q&A
Slide 18: Profits and returns
Profits and returns Resilient performance Adjusted EBITDA Net profit, Adjusted net profit ROE LTM, Adjusted ROE LTM EURm EURm % +6.1% +8.1% 10 115 8 8.9 9.3 95 108.3 8.4 187.8 199.3 6 75 80.6 Net profit 55 74.5 ROE 4 Adjusted 4.4 Adjusted ROE 35 43.7 net profit 2 15 0 -5 9M 2019 9M 2020 9M 2019 9M 2
Slide 19: Development of Adjusted EBITDA
Development of Adjusted EBITDA Adjusted EBITDA grew across all except two segments Adjusted EBITDA bridge EURm 11.8 4.2 3.0 199.3 187.8 (1.0) (6.5) 21.2 17.0 33.3 34.3 131.9 143.7 9M 2019 Networks Green Generation Flexible Generation Customers & solutions Other 9M 2020 Networks Green Generation Flex
Slide 20: Investments
Investments Green Generation and Networks accounted for the majority of investments (14.9)% Green Generation: − Investments increased to 179.5 EURm in 9M 2020 and were 318.1 7.8 EURm higher than in 9M 2019. 4.2 − Major contributor to that was increase of investments in 270.8 construction of Kaunas C
Slide 21: Net debt and debt ratios
Net debt and debt ratios Investments and dividends paid led to increase in net debt Net debt development 25.0 EURm 5.0 -15.0 -35.0 -55.0 +30.4 +19.2 +12.5 -75.0 +207.6 -95.0 (966.5) (270.8) -115.0 (72.5) +13.3 (1,026.8) 31 Dec FFO Change in NWC Subsidies Disposal Investments Dividends Other 30 Sep 2
Slide 22: III Outlook 2020
I Overview II Financial highlights III Outlook 2020 Darius Kašauskas, CFO IV Q&A
Slide 23: 2020 guidance
2020 guidance 13 November guidance 7 May 2020 guidance 300 259.6 265 - 269 250 200 150 100 50 0 Adjusted EBITDA Networks Green Generation Flexible Generation Customers & Solutions Other Adjusted EBITDA 2019 2020E* * Guidance for the Group is the prevailing guidance, whereas directional effect per bu
Slide 24: IV Q&A
I Overview II Financial highlights III Outlook 2020 IV Q&A
Slide 25: Q&A
Q&A
Slide 26: Appendix
Appendix * ignitis
Slide 27: Balance sheet
Balance sheet EURm 2020.09.30 2019.12.31 EURm 2020.09.30 2019.12.31 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Intangible assets 145.9 142.7 Issued capital 1,212.2 1,212.2 Property, plant and equipment 2,540.4 2,347.8 Reserves 259.9 259.7 Right-of-use assets 60.0 61.0 Retained earni
Slide 28: Income statement
Income statement EURm 9M 2020 9M 2019 Revenue from contracts with customers 863.0 794.8 Other income 11.1 7.7 Revenue 874.1 802.5 Operating expenses Purchases of electricity gas for trade and related services (501.8) (522.9) Purchases of gas (23.3) (17.3) Depreciation and amortisation (84.0) (81.9)
Slide 29: Key financial indicators
Key financial indicators 9M 2020 9M 2019 ∆ ∆,% Revenue EURm 874.1 802.5 71.6 8.9% EBITDA APM EURm 229.6 153.9 75.7 49.2% EBITDA margin APM % 26.3% 19.2% - - Adjusted EBITDA APM EURm 199.3 187.8 11.5 6.1% Adjusted EBITDA margin APM % 23.7% 22.5% - - EBIT APM EURm 143.1 64.2 78.9 122.9% Adjusted EBIT
Slide 30: Key operating indicators
Key operating indicators 9M 2020 9M 2019 ∆ ∆,% Electricity Electricity distributed TWh 6.99 7.07 (0.07) (1.0%) Electricity generated TWh 1.80 0.81 0.99 2.2x Green share of generation % 50.7% 97.8% - (47.1%) Green electricity generated TWh 0.91 0.79 0.12 15.4% Green Generation capacity MW 1,520 1,350
Slide 31: Reconciliation of Adjusted EBITDA 9M 2020
Reconciliation of Adjusted EBITDA 9M 2020 (30.3) EURm 229.6 9.9 0.5 199.3 (0.9) (39.8) Reported EBITDA Temporary regulatory Cash effect of new Temporary fluctuations in Other Adjusted EBITDA differences connection points and fair value of derivatives upgrades 31
Slide 32: Reconciliation of Adjusted net profit 9M 2020
Reconciliation of Adjusted net profit 9M 2020 (27.7) EURm 108.3 9.9 0.5 4.2 80.6 (39.8) (2.5) Reported net profit Temporary regulatory Cash effect of new Temporary Adjustments' impact Other adjustments Adjusted net profit differences connection points fluctuations in fair on income tax and upgrades
Slide 33: EBITDA and Net profit adjustments
EBITDA and Net profit adjustments Net profit adjustments EBITDA adjustments EURm EURm 9M 2020 9M 2019 ∆ ∆,% 9M 2020 9M 2019 ∆ ∆,% Net profit 108.3 43.7 64.6 147.8% EBITDA APM 229.6 153.9 75.7 49.2% Adjustments Adjustments Temporary regulatory differences (39.8) 25.9 (65.7) n.m. Temporary fluctuation
Slide 34: Debt overview
Debt overview Gross debt structure as at 30 Sep 2020 Debt maturity schedule % EURm 32.3% 300.0 300.0 300.0 67.7% 129.6 121.8 14.5 27.9 26.5 27.8 23.6 22.6 15.7 12.5 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029+ Bonds Loans (incl. Financial lease) Loans Bonds Outstanding amount Average interest
Slide 35: Outstanding bonds
Outstanding bonds Type ISIN Face value Coupon Tenor Maturity Listing Green Bonds Luxembourg Stock Senior XS1646530565 300 EURm 2.000% annual 10-year 14 July 2027 Exchange, NASDAQ unsecured Vilnius Stock Exchange Luxembourg Stock Senior XS1853999313 300 EURm 1.875% annual 10-year 10 July 2028 Exchang
Slide 36: Glossary
Glossary 9M The first nine months of the year Kruonis PSHP Kruonis Pumped Storage Hydroelectric Plant % Per cent kW Kilowatt APM Alternative performance measure (link) LNG Liquefied natural gas bn Billion LT Lithuania CCGT Combined cycle gas turbine LV Latvia CEO Chief executive officer m Million Cf
Slide 37: More about Ignitis Group IR contacts
More about IR contacts Ignitis Group IPO related information Ainė Riffel-Grinkevičienė Reports & Presentations Investor Relations Officer Strategy aine.riffel@ignitis.lt Sustainability Investor Calendar