Helleniq Energy Holdings S.a. · ATHEX:ELPE
Helleniq Energy — Shareholder Meeting (June 2024)
41 slides from Helleniq Energy's shareholder meeting presentation, Jun 27, 2024
Slide 1: Annual General Meeting 2024
Annual General Meeting 2024 Andreas Shiamishis, CEO Athens, 27 June 2024
Slide 2: Agenda
Agenda 1 Our world today Substantial changes in 2 Delivering Strong results for yet another the business models and year in 2023, along with geopolitical tensions increased shareholder returns 3 Transforming Successful completion of 4 Driving developments Leading the energy transition 1st phase of V
Slide 3: Our world today
01 Our world today Substantial changes in the business models and geopolitical tensions
Slide 4: The global trends of the decade that will determine the course of our world
The global trends of the decade that will determine the course of our world and especially our region Autonomy / Political supply chains uncertainty Environment Econοmy Technology Institutions Population Demographic Climate change Digital skills trends 4
Slide 5: Positive performance of the Greek Economy
Positive 2.0 performance of GDP growth the Greek Among the European countries with 0.4 the highest growth* Economy… Drop in unemployment rate Lowest rate since 2010* 11.1% Increased tourism arrivals Record high* 32.7 million …but with several challenges ahead • Inflationary pressures, • Higher finan
Slide 6: Oil products market
Oil products market Normalization of international prices Demand recovery to new highs Brent price – Average 2023 Global oil demand – 2023 $83/bbl 102 million bpd -18% vs 2022 +2.5% vs 2022 • Normalization of supply-demand • Demand drivers: transportation, balances chemicals, industry, agriculture,
Slide 7: The energy market is challenged by geopolitical crises
The energy market is challenged by geopolitical crises Supply chain disruption through redirection of trade flows Increased costs in transportation, insurance and working capital New regime in oil markets, with introduction of sanctions Unlevel playing field non-compliance creates imbalances in the
Slide 8: Electricity market
Electricity market 9% Lignite 29% RES capacity 30% Natural gas 28% doubled in the last 43% RES 21% 5 years 10% 8% Hydros 12% 10% Imports 2018 2023 Electricity mix in the interconnected system Change in the market model, with increased business risk • Insufficient • Frequent changes • Zero/negative •
Slide 9: Natural Gas market: Back to the "new" reality
Natural Gas market Back to the “new” reality Prices de-escalated in Greece, at levels Russia continues to account for ~50% of above the historical average Greece’s imports of Natural Gas 107 Azerbaijan (N. Mesimvria) Turkey (Kipoi) 48% 34% 35% 44% Russia (Sidirokastro) 42 29 12% 12% LNG – Russia (Ag
Slide 10: Delivering
02 Delivering Strong results for yet another year in 2023, along with increased shareholder returns
Slide 11: Positive results following high profitability in 2022
Positive results following high profitability in 2022 More relevant profitability vs Normalization of IFRS Net Stability of exports at high 2022 Income levels Adjusted EBITDA, € million Reported Net Income, € million Exports share of total sales volume 890 1,601 1,237 54% 478 49% 2022 2023 2022 2023
Slide 12: Indicative projects across our businesses
Indicative projects across our businesses Refining, • Investment decision to expand PP production • Start of operation of the new BOPP cast film production line Supply & • Investment decision to produce biodiesel • Progress in energy efficiency/autonomy projects Trading • Implementation of the Digit
Slide 13: Refining, Supply & Trading
Increased availability and production Refining, Supply & 2023 14.6 Production, million ΜΤ 2022 13.0 Trading Strengthening exports Improved 2023 8.3 Exports, operations million ΜΤ 9.2% 2022 7.0 of Greek exports’ value Extroversion Reduction of air emissions Indicators’* Improvement of evolution -22%
Slide 14: Domestic Marketing
Domestic Marketing 32% Market share 2023 Customer loyalty program >200,000 ΕΚΟ Smile members 2023 133% Quality Increase 2022-23 which is rewarded Differentiated fuels products +16% Increase in sales volume of from our customers premium fuels 2022-23 A wide range of products +15 % and services increa
Slide 15: International Marketing
International Marketing Strong position in the Southeast Europe 323 fuels stations in 5 countries Montenegro Serbia 2023 Market shares Bulgaria R.N.M. Cyprus Absorbs 12% of our exports 41% 6% 6% 69%* 33% Increased contribution of non-fuel products and +27% NFR profitability increase services 2022-23
Slide 16: Renewable energy sources
Renewable energy sources >1 GW production portfolio by 2025 4.3 GW international portfolio under development, RES portfolio under development 0.7 GW in advanced stage Romania Greece Cyprus Entry in the storage business 811 3,500 20 MW MW MW Ability to provide integrated services in Electricity >1 GW
Slide 17: Exploration & Production
Exploration & Production Decisions within the next 12-18 months Completion of seismic Block 2 surveys in all offshore areas Data processing and Ionio interpretation in progress Block 10 West Crete 2D 3D Exploratory Production Southwest Crete seismics seismics drilling 17
Slide 18: For yet another year we provided support to the society
For yet another year we provided support to the society • With significant contribution of >€20 million in 2023 • With various initiatives and voluntary actions • >750,000 people benefiting from initiatives in Greece and internationally • By supporting the vulnerable consumers, especially during cri
Slide 19: We consistently support
We consistently support Health Environment New Sports Culture generation 19
Slide 20: Transforming
03 Transforming Successful completion of 1st phase of Vision 2025
Slide 21: We started our transition to a new growth model years ago
We started our transition to a new growth model 3 years ago VISION 2025 CO2 Strategy Governance Corporate structure Rebranding Improvement of Appropriate Improved Fit-for-purpose New corporate environmental business strategy corporate corporate identity footprint and capital governance structure all
Slide 22: We set a target for reducing greenhouse gas emissions and redefined our strategy
We set a target for reducing greenhouse gas emissions and redefined our strategy 50% improvement of carbon Investments in RES International expansion footprint by 2030 +14% CO2 emissions (Scope 1 and 2) 356 4.3 fuels stations in international markets, 2019-23 4,400 kt 26 1.0 2019 2023 2019 2023 Roma
Slide 23: We developed our organization and identity
We developed our organization and identity Upgrade of corporate governance Adoption of new corporate structure and identity • Amendments of the Articles of Association • New BoD structure • Update of policies and regulations Special purpose vehicles for Group services • Further development of intern
Slide 24: We constantly evolve our organizational framework and people
We constantly evolve our organizational framework and people Human Resources KPIs 2019-23 >1,000 We upgrade our corporate governance We invest in our people hirings 30% • We promote a culture of performance • We renew our human resources personnel renewal and accountability • We employ specialized e
Slide 25: We invest in digital transformation
We invest in digital transformation Digital Transformation Indicators >100 >500 employees actions in progress or in working groups completed €50 million €100 million • We improve operational performance investments by 2023 total investments • We enhance our way of operating and promote new by 2025 p
Slide 26: We prioritize Health, Safety and Environment
We prioritize Health, Safety and Environment Health, Safety and Environment Indicators 2019-23 Up to 19% €78 million Improvement of safety Investments in health and safety indicators (LWIF, AIF, PSER) +8 pps +23 pps Increase in water recycling rate Increase in waste recycling rate • We develop and e
Slide 27: We create value for our shareholders
We create value for our shareholders >80% x4 total shareholder return 2021-23* increase of shares’ daily trading value, following the private • +35% share price change, 2021-2023 placement that took place in December 2023 • €0.75 bn total dividends to shareholders in 2021-2023, corresponding to 45%
Slide 28: We have effectively managed the crises
We have effectively managed the crises Resilience in a highly volatile environment 2020-21 2022-23 COVID - 19 Geopolitical tensions • Immediate response to the • Ensuring market supply pandemic outbreak • Immediate change of supply • Implementation of measures for strategy before imposition of the s
Slide 29: Significant contribution of the Board of Directors to the evolution of the Company
Significant contribution of the Board of Directors to the evolution of the Company HELLENiQ ENERGY Holdings S.A., BoD 2021-2024 Ioannis Papathanasiou Andreas Shiamishis Georgios Alexopoulos Chair, Non-Executive Chief Executive Officer, Deputy Chief Executive Officer, Member Executive Member Executiv
Slide 30: Driving developments
04 Driving developments Leading the energy transition
Slide 31: The world in 2050
Global energy mix 2050 Increased demand for energy 21% Shift to electricity 86% increase in increase in electricity consumption production The world in 2050 realism and balance in the energy transition targets RES growth 70% Fossil fuels continue to contribute 33% of electricity from of energy from
Slide 32: Energy transition path to be driven by various unpredictable factors
Uncertainty about the Gaps and ambiguities in evolution of demand for the regulatory framework new energy products Different strategies and Accessibility, Energy transition path to be priorities between adequacy and cost by various driven governments of funding unpredictable factors Uneven playing f
Slide 33: Demand for energy is shifting away from our traditional markets
Population change 2022-2050 -40 million Demand for energy is shifting away +1,000 +570 from our traditional million million markets 33
Slide 34: Acknowledging the challenges, we accelerate our energy transition strategy
Acknowledging the challenges, we accelerate the implementation of our energy transition strategy
Slide 35: We improve our environmental footprint
We improve our environmental footprint By increasing energy efficiency By CO2 capture 35
Slide 36: We design new products and solutions for our customers
We design new products and solutions for our customers Sustainable Renewable E-mobility Synthetic fuels Green Aviation Fuels diesel (HVO) (e-jet, e-ammonia) Hydrogen (SAF) 36
Slide 37: We continuously upgrade our customer services
1,000,000 members in 2025 We continuously upgrade our customer services We implement digital We evolve the loyalty We collaborate with solutions program across our markets top brands 37
Slide 38: We invest in electricity and green energy
We invest in electricity and green energy We develop wind We develop and We leverage on and PV parks mature new synergies between technologies core businesses and rest of portfolio 38
Slide 39: We expand our presence internationally
We expand our presence internationally Trading of oil Fuels network RES production 39 products
Slide 40: Vision 2025 objectives: sustainable investments and value creation
Vision 2025 objectives: sustainable investments and value creation Gradual transition Value creation for the shareholders • Ensuring the competitiveness of our core • Increase in profitability activities • Stability of cashflows • Credible investment plan in the Green • Increased contribution from e
Slide 41: Empowering Tomorrow
Empowering Tomorrow www.helleniqenergy.gr
HELLENiQ ENERGY Holdings — Shareholder Meeting (June 2024) on 6ix