Polenergia S.a. · GPW:PEP
Polenergia — Q4 2019 Earnings Presentation
22 slides from Polenergia's earnings presentation, March 2020
Slide 1: Polenergia Group Q4 2019 Financial Results
In case of divergence between the language versions, the Polish version shall prevail. WIND POWER CONVENTIONAL ENERGY DISTRIBUTION TRADING POLENERGIA GROUP Q4 2019 Financial Results March 2020
Slide 2: The year 2019 was full of events that enhanced the Group's performance
The year 2019 was full of events that enhanced the Group’s performance Change of approach to High windiness Wind farm RES auctions Amendments to Pioneering financing of RES by the Management Board In 2019 auctions took place, PPA/CPA at wind farms the Szymankowo project In 2019 the government of Myc
Slide 3: Summary of major events Q4 2019
Summary of major events Q4 2019 Fact Outcome/Comment ▪ Increased net worth of the Company — Share price increase from PLN 20.5 as at 31.12.2018 up to PLN 26.9 as at 31.12.2019 and PLN 29.8. as at 06.03.2020. ▪ RES auctions - announced auctions for 2020 in two tiers (also for projects with — This yea
Slide 4: Summary of major events Q4 2019
Summary of major events Q4 2019 Fact Mitigation/ Comment ▪ RES auctions for photovoltaic power plants: In Q4 auctions for photovoltaic power — Polenergia participated in the auction with its 2 PV projects (Sulechów II and Sulechów III) with the capacity of stations took place (ca. 0.7 GW). 20.7 MW.
Slide 5: Key indices and market prices (in the last 12 months)
Key indices and market prices (in the last 12 months) 1 Prices of green certificates and electricity 2 Stock exchange price quotations of Polenergia S.A. shares Average price of GC for the period weighted against the transaction volume thousand PLN/MWh GC price [left] EE price (IRDN24) [right] PLN/M
Slide 6: Summary of key operating parameters - Wind power segment
Summary of key operating parameters - Wind power segment Wind farms production (gross) Average fixed operating cost per Average revenue per MWh (after balancing and profile cost) at the Group 1 and LF% 2 MW in wind farms* [PLN k/MW/year] 3 level [PLN/MWh] Quarterly data +8% -12% Electricity Green ce
Slide 7: Wind power - production
Wind power - production (Net) Production, YTD YTD Productivity (%) YTD Production (GWh) +19% 167,0 160,8 737,7 147,6 142,7 137,7 621,8 117,6 81,0 34% 40% 62,3 78,4 39% 37% 69,5 52,7 19% 22% 28% 37% 37% 46,6 43,4 33% 31% 28% 34,5 26% 25% 23% 22% 18% 22% 11,6 6,1 2018 2019 2018 2019 2018 2019 2018 201
Slide 8: Summary of key operating parameters
Summary of key operating parameters 4 Distribution segment – sales [GWh] 5 Conventional energy segment - sales[GWh] and average prices[PLN/MWh] Quarterly data +45% -1% +3% 72 205 +6 249 +77 71 199 -10% +5% -14 142 172 128 38 40 +16% 41 47 Energy Sales (GWh) Energy Distribution (GWh) Electricity sale
Slide 9: Summary of key figures
Summary of key figures 2018 2019 2018 2019 Q4 Q4 YTD YTD +6% +38,3 ▪ Q4: Revenues lower due to decrease of the conventional -7% segment revenues partly offest by higher wind farm power -12,0 segment revenues. Revenues* (excl. Trading) 643,8 ▪ YTD: Higher revenues due to increased revenues of the win
Slide 10: EBITDA by operating segments
EBITDA by operating segments Q4 Comments Wind Power: better performance driven by higher production volumes and higher prices of electricity and green certificates. In addition, lower operating costs in 2019 as a result of the 2017 78,7 real estate tax provision booked in December 2018 and lack of r
Slide 11: Cash flow of Polenergia Group
Cash flow of Polenergia Group Q4 Comments 79 • ∆ WC: Movements in working capital of ENS (drop in receivables from both types 5 (8) of compensation partly offset by lower provision for CO2 allowances and drop in (15) inventories) and changes in the distribution segment. Loan prepayment • CFI: Capex
Slide 12: Debt structure as at 31 December 2019
Debt structure as at 31 December 2019 Net debt (YE2018 vs. YE2019) Debt structure by segment 7% 0% Wind power (437) Distribution (594) Other 93% -26,5% YE2018 YE2019 PLN 782 m Debt structure - interest rate Debt structure by currency (EUR vs. PLN) hedging Unsecured debt 78,2% 1,9% Debt in EUR 98,1%
Slide 13: Summary of segment results
WIND POWER CONVENTIONAL ENERGY DISTRIBUTION TRADING Summary of segment results 13
Slide 14: Wind power - Q4
Operating segments Wind power - Q4 1 EBITDA build-up Comments (3,6) • Production volume of electricity and green certificates higher by 17 GWh. 24,9 (10,4) 1,0 55,3 • Increase in sales prices of green certificates and electricity (by PLN 43,5 65.7/MWh in total) on the level of segment. • Lower opera
Slide 15: Wind power - YTD
Operating segments Wind power - YTD 1 EBITDA build-up Comments (10,7) • Electricity production volume higher by 115.8 GWh, with green certificates 71,6 (40,5) 178,7 production volume higher by 117.9 GWh. 3,8 154,4 • Increase in sales prices of green certificates and electricity (by PLN 66/MWh in tot
Slide 16: Conventional energy - Q4
Operating segments Conventional energy - Q4 1 EBITDA build-up Comments 15,6 0,0 0,3 • Lower performance on electricity results from lower stranded cost compensation revenues (Q4 2018 impact of higher margin on electricity sales in 2019 and 2020 in connection with the update (+) of energy prices 11,7
Slide 17: Conventional energy - YTD
Operating segments Conventional energy - YTD 1 EBITDA build-up Comments 80,7 0,0 2,0 • Lower performance on electricity results from lower stranded cost compensation revenues compared to 2018 in view of the change of allocation of stranded cost compensation in December 2018 as a 58,0 result of : ✓ l
Slide 18: Distribution - Q4
Operating segments Distribution - Q4 1 EBITDA build-up Comments The distribution segment recorded in Q42019 EBITDA result comparable to (3,1) the corresponding period of the preceding year which is mainly a 2,4 (0,1) 0,0 consequence of higher margin on distribution offset by lower other operating 5,
Slide 19: Distribution - YTD
Operating segments Distribution - YTD 1 EBITDA build-up Comments The distribution segment featured a growth of EBITDA by PLN 0.6m (10,0) 15,1 compared to the corresponding period of the preceding year, mainly because 19,8 0,3 of: 2,4 • higher distribution margin, • lower other operating revenues (hi
Slide 20: Trading - Q4
Operating segments Trading - Q4 1 EBITDA build-up Comments (0,4) • Lower result on the trading portfolio due to worse result on short-term 3,2 trading in Q4 2019. (3,4) 5,6 • Higher margin on the wind farm portfolio due to higher sales prices of 3,9 2,3 green certificates and better result on electr
Slide 21: Trading - YTD
Operating segments Trading - YTD 1 EBITDA build-up Comments • Better performance of electricity trading due to improved commercial 2,6 operations risk management. (10,4) 13,6 14,8 • Higher margin on the wind farm portfolio due to higher sales prices of 12,6 green certificates and better result on el
Slide 22: Projects under development
. Projects under development Wind farms (Szymankowo, Dębsk, Kostomłoty, Piekło): Offshore wind farms: • The projects of Dębsk, Szymankowo and Kostomłoty won the RES auctions for wind • The Group has been preparing for the construction of three offshore wind farms (Polenergia Bałtyk I farms (186 MW).