Ze Pak Sa · GPW:ZEP
Ze Pak Sa — Q3 2022 Earnings Presentation
41 slides from Ze Pak Sa's earnings presentation, Nov 29, 2022
Slide 1: 3Q 2022 Results
3Q 2022 Results November 29, 2022 1
Slide 2: ZE PAK Group – 9M 2022 summary
ZE PAK Group – 9M 2022 summary Key operational and financial data 9M 2022 Change y/y Sale of electricity: 4.61 TWh +11.62% • Electricity from own production: 2.67 TWh -13.59% • Electricity from resale: 1.94 TWh +86.54% Achieved average electricity sale price (1) 585.87 PLN/MWh +102.47% Average purch
Slide 3: ZE PAK Group – 3Q 2022 summary
ZE PAK Group – 3Q 2022 summary Key operational and financial data 3Q 2022 Change y/y Sale of electricity: 1.49 TWh -1.97% • Electricity from own production: 0.89 TWh -27.64% • Electricity from resale: 0.60 TWh +106.90% Achieved average electricity sale price (1) 673.28 PLN/MWh +113.03% Average purch
Slide 4: ZE PAK Group – 3Q 2022 summary
ZE PAK Group – 3Q 2022 summary REVENUES EBITDA NET RESULT 1100 227 92 10 511 564 81 85 102 217 497 398 34 136 3Q 2022 3Q 2021 68 86 Other 3Q 2022 3Q 2021 Electricity from resale Own electricity production Depreciation EBIT 3Q 2022 3Q 2021 The increase in revenues in Q3 2022 compared to Q3 2021 is ma
Slide 5: Selected Electricity Market Data
SELECTED ELECTRICITY MARKET DATA 5
Slide 6: Electricity prices
Electricity prices On the day-ahead market at TGE SA, invariably since the second quarter of 2020, the average price of the TGeBASE indices maintains a strong upward trend. High price levels in the reporting period were still stimulated by the unstable situation 1550 related to gas supplies in Europ
Slide 7: EUA and green certificates
EUA and green certificates In the third quarter of 2022, the price of CO2 emission allowances fluctuated 95 significantly, and July on the CO2 emission allowance market brought prices 82,49 85 down to EUR 76. The drop in prices may have been caused by the EC plan 75 obliging all EU member states to
Slide 8: Operational Data
OPERATIONAL DATA 8
Slide 9: Net production and sale of electricity – 9M 2022
Net production and sale of electricity – 9M 2022 [TWh] NET PRODUCTION SALE OF ELECTRICITY 4,61 ⬆11,62% 4,13 ⬇13,59% 1,94 1,04 2,67 3,09 ⬆86,54% TWh 0,07 0,23 TWh ⬆30,43% 0,30 1,44 ⬆11,11% 1,60 ⬇13,59% 3,09 2,67 ⬇ 50,70% 1,42 0,70 9M 2022 9M 2021 9M 2022 9M 2021 The decrease in production observed in
Slide 10: Quarterly net production and sale of electricity
Quarterly net production and sale of electricity [TWh] NET PRODUCTION 1,23 0,07 0,89 ⬇27,64% 0,93 0,84 0,01 0,03 0,10 0,03 0,65 0,11 ⬆ 57,14% TWh 0,09 TWh 0,57 0,49 ⬆24,62% 0,54 0,51 0,25 0,18 0,26 ⬇49,02% 1Q 2022 2Q 2022 3Q 2022 3Q 2021 Units 1,2 & 5 (PI) Unit 9 (PII) Biomass Brudzew Units 1,2 & 5
Slide 11: Lignite consumption and CO2 emission – 9M 2022
Lignite consumption and CO2 emission – 9M 2022 [m tons] LIGNITE CONSUMPTION CO2 EMISSION ⬇28,61% 3,74 2,67 2,63 ⬇24,43% 3,48 1,66 ⬆1,20% ⬆7,79% 1,54 CO2 million tons million tons 1,68 1,66 ⬇52,40% 2,08 ⬇50,00% 1,94 0,99 0,97 9M 2022 9M 2021 9M 2022 9M 2021 Units 1,2 & 5 (PI) Unit 9 (PII) Units 1,2 &
Slide 12: Quarterly lignite consumption and CO2 emission
Quarterly lignite consumption and CO2 emission [m tons] LIGNITE CONSUMPTION 1,48 ⬇40,54% 0,98 0,88 0,73 0,82 million tons million tons 0,61 ⬇28,77% 0,52 0,56 0,75 CO2 0,36 0,36 ⬇52,00% 0,26 1Q 2022 2Q 2022 3Q 2022 3Q 2021 Units 1, 2 & 5 (PI) Unit 9 (PII) Units 1,2 & 5 (PI) Unit 9 (PII) CO2 EMISSION
Slide 13: Average prices of electricity and CO2 emission allowances purchase – 9M 2022
Average prices of electricity and CO2 emission allowances purchase – 9M 2022 Electricity price 1) Prices of CO2 emission allowances purchase(EUA) 2) 1) Average price calculated as revenues from sales of energy (own, from trading and system services) divided by the sales volume. 296,10 PLN/MWh PLN/EU
Slide 14: Quarterly average prices of electricity and CO2 emission allowances purchase
Quarterly average prices of electricity and CO2 emission allowances purchase Electricity price 357,24 PLN/MWh 673,28 ⬆ 113,03% 546,51 553,72 316,04 1Q 2022 2Q 2022 3Q 2022 3Q 2021 Prices of CO2 emission allowances purchase (EUA) PLN/EUA 157,94 313,81 301,15 259,15 ⬆ 110,29% 143,21 1Q 2022 2Q 2022 3Q
Slide 15: Employment
EMPLOYMENT 15
Slide 16: Employment
Employment [full time] BY SEGMENTS TOTAL 2000 3 492 3 577 3 187 1000 0 GENERATION MINING RENOVATION OTHER 30-09-2022 31-12-2021 30-09-2021 30-09-2022 31-12-2021 30-09-2021 16
Slide 17: Financial Data
FINANCIAL DATA 17
Slide 18: Revenues
Revenues [m PLN] 1 397 9M 2022 The increase in total revenues from the sale of electricity was 1 306 9M 2021 mainly due to the increase in the price by 102.47% and the increase in the total volume of electricity sales by 11.62%. However, in the case of sales of electricity from own production, 921 t
Slide 19: Costs by type
Costs by type [m PLN] 1 158 9M 2022 Higher costs of material consumption mean higher costs of biomass and higher costs of energy used in mines. 9M 2021 763 Lower depreciation as a result of impairment losses on fixed assets at the end of 2021. 429 Higher costs of employee benefits as a result of the
Slide 20: EBITDA 9M 2022
EBITDA 9M 2022 [m PLN] 9M 2022 9M 2021 (1) EBITDA higher by PLN 240 million (+129.48%) -> after bringing to comparability higher by PLN 256 million Sale revenues 3 093 1 604 (+137.97%) comparable EBITDA for 9M 2022 amounted to PLN 441 million -> the value of PLN 425 million is the effect of creating
Slide 21: EBITDA 9M 2022 by segments
EBITDA 9M 2022 by segments [m PLN] Main reasons for EBITDA changes in segments: Generation: 322 EBITDA • higher revenues from own energy, higher revenues from system services, higher result on purchased energy, higher revenues from heat, lower LTC revenues, lower revenues from the capacity market, l
Slide 22: Consolidated profit and loss account for 9M 2022 by segments
Consolidated profit and loss account for 9M 2022 by segments Consolidation m PLN Generation Mining Renovation Sale Other adjustments Total Sale revenues from external 2 098 2 44 944 6 - 3 093 customers External sale revenues % 92.26% 0.49% 32.59% 100.00% 5.88% 0.00% 100.00% Sale revenues between 176
Slide 23: EBITDA 3Q 2022
EBITDA 3Q 2022 [m PLN] 3Q 2022 3Q 2021 (1) EBITDA higher by PLN 125 million (+121.81%) -> after bringing to comparability higher by PLN 141 million Sale revenues 1 137 618 (+137.20%) comparable EBITDA for 3Q 2022 amounted to PLN 243 million -> the value of PLN 125 million is the effect of creating a
Slide 24: EBITDA 3Q 2022 by segments
EBITDA 3Q 2022 by segments [m PLN] Main reasons for EBITDA changes in segments: Generation: 188 EBITDA • higher revenues from own energy, higher revenues from system services, higher result on purchased energy, higher revenues from heat, lower LTC revenues, lower revenues from the capacity market, l
Slide 25: Consolidated profit and loss account for 3Q 2022 by segments
Consolidated profit and loss account for 3Q 2022 by segments Consolidation m PLN Generation Mining Renovation Sale Other adjustments Total Sale revenues from external 756 1 20 359 1 - 1 137 customers External sale revenues % 88.73% 0.72% 39.22% 100.00% 3.23% 0.00% 100.00% Sale revenues between 96 13
Slide 26: Financial activities, taxation and net result
Financial activities, taxation and net result [m PLN] 9M 2022 9M 2021 3Q 2022 3Q 2021 EBIT 393 84 217 68 EBIT --˃ net profit Financial income(1) 65 50 34 49 Financial costs(2) (61) (56) (36) (50) Gros profit / (loss) 397 77 215 67 Income tax (108) 29 (80) 19 (tax overload) (3) Effective tax rate 27.
Slide 27: Indebtedness
Indebtedness Net debt [m PLN] Net debt/ EBITDA 30.09.2022 0.31 30.09.2022 31.12.2021 30.09.2021 31.12.2021 (0.24) 1086 30.09.2021 0.26 452 417 (1) Cash and cash equivalents from consolidated 148 53 statement of financial position and other short- ( 55) term financial assets (364) (507) (938) Cash an
Slide 28: Consolidated cash flow statement
Consolidated cash flow statement [m PLN] 9M 2022 9M 2021 3Q 2022 3Q 2021 Gross profit / (loss) 397 77 215 67 (1) The positive change in working capital is mainly due to a Depreciation 33 100 10 34 decrease in receivables due to a decrease in the level of Profit / (loss) on investing and financial ac
Slide 29: Investments
INVESTMENTS 29
Slide 30: Investments in fixed assets and intangible assets [without CO2]
Investments in fixed assets and intangible assets [without CO2] CAPEX [m PLN] EXPENDITURES [m PLN] 295 373 252 281 92 107 107 82 9M 2022 9M 2021 3Q 2022 3Q 2021 9M 2022 9M 2021 3Q 2022 3Q 2021 In the period of 9M 2022, in addition to the expenditure on fixed assets shown in the chart, PLN 93 million
Slide 31: Strategic Projects in Renewable Energy Sources
STRATEGIC PROJECTS IN RENEABLE ENERGY SOURCES As at November 2022 31
Slide 32: Green hydrogen – H2 project portfolio
Green hydrogen – H2 project portfolio PROJECT’S NAME PROJECT’S PHASE STATUS OF WORK Hydrogen Plant ▪ 6/10kV transformer has been delivered. Implementation in Elektrownia Konin ▪ The process of developing technical projects is ongoing. ▪ A building permit was obtained and the commencement of works wa
Slide 33: Green hydrogen – H2 project portfolio
Green hydrogen – H2 project portfolio PROJECT’S NAME PROJECT’S PHASE STATUS OF WORK Hydrogen refuelling stations Design ▪ An agreement was concluded with EP Katowice for the design of hydrogen on 5 locations: Gdańsk, refuelling stations. Design process in progress. Gdynia, Wrocław, Rybnik, ▪ Agreeme
Slide 34: Polish Hydrogen Bus – Neso Bus and a plant of hydrogen buses
Polish Hydrogen Bus – Neso Bus and a plant of hydrogen buses PROJECT’S NAME STATUS OF WORK ▪ Work on the prototype has been completed. Polish Hydrogen Bus ▪ EU approval obtained – city bus. ▪ On May 30, 2022, the official premiere and presentation of the bus took place, and the website was launched
Slide 35: Photovoltaic Farm - Cambria
Photovoltaic Farm - Cambria PROJECT’S NAME LOCATION CAPACITY PROJECT’S PHASE PRODUCTION Wielkopolskie voivodship PV Cambria Turek poviat 12,4 MWp Design 3Q 2023 Commune: Brudzew STATUS OF WORK ▪ The process of acquiring the project - a photovoltaic farm adjacent to the operated Brudzew 70 MWp photov
Slide 36: Kazimierz Biskupi Wind Farm
Kazimierz Biskupi Wind Farm PROJECT’S NAME LOCATION CAPACITY TURBINES PROJECT’S PHASE PRODUCTION Wielkopolskie voivodship FW Kazimierz Biskupi Konin poviat 17,5 MW 7 Implementation 3Q 2023 Kazimierz Biskupi commune STATUS OF WORK ▪ Construction work on foundations for wind turbines has been complete
Slide 37: Miłosław Wind Farm
Miłosław Wind Farm PROJECT’S NAME LOCATION CAPACITY TURBINES PROJECT’S PHASE PRODUCTION Wielkopolskie voivodship FW Miłosław Września poviat 9,6 MW 4 Implementation 3Q 2023 Mirosław commune STATUS OF WORK ▪ Construction work on foundations for wind turbines has been completed. ▪ Construction works a
Slide 38: Przyrów Wind Farm
Przyrów Wind Farm PROJECT’S NAME LOCATION CAPACITY TURBINES PROJECT’S PHASE PRODUCTION Śląskie voivodship FW Przyrów Częstochowa poviat 50,4 MW 14 Implementation 3Q 2024 Przyrów commune STATUS OF WORK ▪ Negotiations with the supplier of wind turbines (Nordex) completed, contract for the supply of 14
Slide 39: Człuchów Wind Farm
Człuchów Wind Farm PROJECT’S NAME LOCATION CAPACITY TURBINES PROJECT’S PHASE PRODUCTION Pomorskie voivodship FW Człuchów Człuchowski poviat 72,6 MW 33 Implementation 2Q 2024 Człuchów commune STATUS OF WORK ▪ Power transformers for the substation were ordered. ▪ The construction site was handed over
Slide 40: Drzeżewo IV Wind Farm
Drzeżewo IV Wind Farm PROJECT’S NAME LOCATION CAPACITY TURBINES PROJET’S PHASE PRODUCTION Pomorskie voivodship FW Drzeżewo IV Poviat: Słupsk 50,6 MW 23 Implementation 2Q 2024 Commune: Potęgowo STATUS OF WORK ▪ The process of concluding contracts with the supplier of wind turbines - Vestas and with t
Slide 41: Disclaimer
Disclaimer This presentation ("Presentation") is prepared for information purposes only and should not be treated as investment advice. This presentation has been prepared by ZE PAK SA (“the Company”). Presentation Recipients are solely responsible for their own analysis and evaluation of the market