Societatea Energetica Electrica S.a. · BVB:EL

Societatea Energetica Electrica — Electrica — WOOD's Winter Wonderland EMEA Conference 2023

64 slides from Societatea Energetica Electrica's conference presentation, Dec 8, 2023

  1. Slide 1: WOOD's Winter Wonderland EMEA Conference

    WOOD's Winter Wonderland EMEA Conference Based on Presentation of Q3/9M 2023 Financial Results (Acc. OMFP 2844/2016) Prague, 5-8 December 2023 Publi

  2. Slide 2: Content

    Content 1 Q3 / 9M 2023 Financial results  Key Group Information  Market Share Data  Distribution Segment Overview  Energy Services Segment Overview  Supply Segment Overview  Production Segment Overview  Group Liquidity  Dividends 2 Corporate Governance and Capital Market Evolution  Group St

  3. Slide 3: Disclaimer

    DISCLAIMER The results presented are based on the consolidated financial statements prepared in accordance with the Order of the Minister of Public Finance no. 2844/2016 for the approval of the Accounting Regulations compliant with the International Financial Reporting Standards, as subsequently ame

  4. Slide 4: Summary Consolidated Financials (OMFP 2844/2016)

    Summary Consolidated Financials (OMFP 2844/2016) Key Group Information Revenues EBITDA Growth and Margin Performance (RON mn.) EBITDA (RON mn.) and EBITDA Margin (%) 10,010 15.2% 1,6 00 20 .0 % 13.6% 17.5% 609 1,4 00 1,2 00 15 .0 % 7,151 7,245 7,157 1,0 00 582 449 393 80 0 9.5% 10 .0 % 1,363 1,253 5

  5. Slide 5: Consolidated EBITDA and Net Result Evolution (OMFP 2844/2016)

    Consolidated EBITDA and Net Result Evolution (OMFP 2844/2016) Key Group Information Comments The consolidated EBITDA variation 9M 2023 vs. 9M 2022 is RON 149 mn., being mostly the cumulated effect of the factors EBITDA (RON mn.) below:  The positive variation of the energy margin RON 932 mn., there

  6. Slide 6: Leading Player in Distribution and Supply

    Leading Player in Distribution and Supply Market Share Distribution Supply Volumes Distributed in 2022 Volumes Supplied in 2021 Volumes Supplied in 2022 17.96% 13.3% 18.42 DEER_MN DEER_TN Electrica Furnizare 12.7% DEER_TS Others 47.19TWh 44.7 TWh 50.99 TWh Altii 60.3% 13.7% 82.04% 81.58 Electrica: 3

  7. Slide 7: Distribution Segment – Highlights (OMFP 2844/2016)

    Distribution Segment – Highlights (OMFP 2844/2016) Distribution Segment Overview Key figures S3 2023 Financial results EBITDA increased by RON 230 mn., mainly due to the evolution of: ~3.92 million ▲ increase in energy margins by RON 1,064 mn., as an effect of: users - increase in energy revenues by

  8. Slide 8: Distribution Segment – Main Aspects

    Distribution Segment – Main Aspects Distribution Segment Overview Relevant regulatory information: Distributed energy margin Distribution tariffs [RON/MWh]  At the beginning of the current PR4 regulatory period, ANRE made a (RON mn.) total negative correction to close PR3 in the amount of RON (855)

  9. Slide 9: RRAB Analysis of the Distribution Segment

    RRAB Analysis of the Distribution Segment Distribution Segment Overview Budgeted Result for the Year 2023 (RON mn.) Relevant regulatory issues:  RON 451 mn., regulated result includes a negative deviation of the NL cost of RON 118 mn. (calculated for the quantity of 1,884 GWh and the price differen

  10. Slide 10: Analysis of Regulated Profit – OMFP 2844 Budgeted Result

    Analysis of Regulated Profit – OMFP 2844 Budgeted Result Distribution Segment Overview for the Distribution Segment for the Year 2023 (RON mn.) 10 Publi

  11. Slide 11: Analysis of RRAB - OMFP 1802 – OMFP 2844 Result at 9M 2023

    Analysis of RRAB - OMFP 1802 – OMFP 2844 Result Distribution Segment Overview Distribution Segment at 9M 2023 (RON mn.) Relevant regulatory issues: The positive regulated result of RON 544 mn. does not include the effect of the capitalization of the negative deviation of the cost of NL - in realized

  12. Slide 12: DEER - TN

    DEER - TN Distribution Segment Overview Key figures 9M 2023 Network losses cost * Network losses (RON mn) (GWh) ~1.36 mn 633 649 639 users 506 487 432 71,265 km 34,162 km2 voltage lines coverage 296 area 225 RAB: RON 2.06 bn (est.) 4.08 TWh (-3.3%) 9M 2023 2021 9M 2022 2022 9M 2023 2021 9M 2022 2022

  13. Slide 13: DEER - TS

    DEER - TS Distribution Segment Overview Key figures 9M 2023 Network losses Network losses cost * (RON mn) (GWh) ~1.22 mn users 548 692 549 59,239 km 34,072 km2 397 354 406 433 voltage lines coverage area 225 RAB: RON 1.86 bn (est.) 4.27 TWh (-7.5%) 9M 2023 2021 9M 2022 2022 9M 2023 2021 9M 2022 2022

  14. Slide 14: DEER - MN

    DEER - MN Distribution Segment Overview Key figures 9M 2023 Network losses cost * Network losses (RON mn) (GWh) ~1.34 mn users 675 795 684 72,254 km 28,962 km2 500 582 519 voltage lines coverage 413 303 area RAB: RON 2.12 bn (est.) 4.20 TWh (-7,4%) 9M 2023 2021 9M 2022 2022 9M 2023 2021 9M 2022 2022

  15. Slide 15: The financial impact of the electricity market perspectives evolution - distribution

    Distribution Segment Overview The financial impact of the electricity market perspectives evolution - distribution Evolution of the cost of electricity needed to cover NL (net with income) Network losses  In the first 9 months of 2023, the cost of electricity purchased for NL (net with income) cove

  16. Slide 16: Electrica Serv (SERV) (OMFP 2844/2016)

    Energy Services Segment Overview Electrica Serv (SERV) (OMFP 2844/2016) General overview Revenues (RON mn.) SERV provides repair and other energy-related services to third parties, as well as several services to the companies within the group (vehicles rental, building rental etc.). Starting with 1

  17. Slide 17: Supply Segment – Electrica Furnizare (OMFP 2844/2016)

    Supply Segment – Electrica Furnizare (OMFP 2844/2016) Supply Segment Overview Key figures 9M 2023 Financial results EBITDA decreased by RON 103 mn. compared to 9M 2022, mainly following the evolution of the factors below: ▼ the decrease in revenues from the supply of electricity and natural gas by R

  18. Slide 18: Supply segment overview

    Supply segment overview In the whole supply market, Electrica is the largest supplier by number of consumption places The supply market comprises the competitive segment, universal service (US) as well as the supplier of last resort (SoLR) segment. The competitive market segment comprises 90 supplie

  19. Slide 19: Supply - Key Aspects

    Supply - Key Aspects Supply Segment Overview Volume of Electricity Supplied Volume of Electricity Supplied on Number of consumption places Number of consumption places on Retail Market Q3 2023 (TWh) Retail Market Q3 2023 (TWh) as of September 30, 2023 (mln.) as of September 30, 2023 (mln.) 6.9 3.5 6

  20. Slide 20: Supply – Key operational indicators in the last 3 years

    Supply Segment Overview Supply – Key operational indicators in the last 3 years Number of consumption places - electricity (mln.) 4.00 3.56 3.57 3.52 3.49 3.57 3.51 3.51 3.49 3.58 3.55 3.51 3.50 3.58 3.51 3.50 3.50 3.00 2.50 1.85 1.85 1.83 2.09 1.85 1.80 1.95 1.85 1.88 2.27 2.00 3.29 2.94 3.29 3.29

  21. Slide 21: The Financial Impact of the Electricity Market Perspectives Evolution – Supply (1/2)

    The Financial Impact of the Electricity Market Perspectives Evolution – Supply (acc. OMFP 1802/2014) (1/2) Throughout January – September 2023 the gross margin achieved is RON 443 mln., with - RON 160 mln. below the level reached in 2022 (RON 603 mln.), and in term of volumes there was a decrease of

  22. Slide 22: The Financial Impact of the Electricity Market Perspectives Evolution – Supply (2/2)

    Supply Segment Overview The Financial Impact of the Electricity Market Perspectives Evolution – Supply (2/2) Receivables’ analysis (acc. OMFP 1802/2014)  The balance of receivables decreased by 7.2% (- RON 192 mln.) at the end of the 3rd quarter 2023 compared to December 2022 and reached 2.49 bln.

  23. Slide 23: Production Segment – Highlights (OMFP 2844/2016)

    Production Segment – Highlights (OMFP 2844/2016) Production Segment - Overview General overview Production Segment – Structure at the date of this presentation Starting with the year 2020, the Electrica Group proposed the development of a portfolio of % shareholdings as Installed electricity product

  24. Slide 24: Group Liquidity

    Group Liquidity Group Liquidity  At Group level, the total liquidity available in cash and overdraft limits as of 30 September 2023 was RON 523 mn., higher than the level recorded at the Total liquidity (RON mn.) end of the previous period, 30 September 2022. The level of cash on 30 September 2023

  25. Slide 25: Dividend Distribution

    Dividend Distribution Dividends Distributed gross dividends (FY 2014 – 2022) (RON mn.) Gross dividend per share (RON) and Dividend yield(1) (%) 6.9% 291.6 6.9% 7.3% 6.0% 6.8% 244.7 251.4 245.4 247.5 246.1 247.9 5.2% 5.2% 6.1% 0.8600 0.7217 0.7415 0.7237 0.7300 0.7248 0.7300 152.8 0.4500 1.4% 40.0 0.

  26. Slide 26: Group structure

    Group structure Group Structure Electrica Group is the only Romanian group listed on the BSE & LSE which operates within energy production, distribution, supply & energy service segments Distributie Energie Electrica 99.99% 2) Electrica Furnizare S.A. 99.99%2) Romania S.A. Distribution Operator Elec

  27. Slide 27: Corporate Governance Bodies

    Corporate Governance Bodies Corporate Governance Bodies · Mr. Iulian Cristian Bosoanca – Chair Board of · Mr. Gicu Iorga Directors · Mr. Ion-Cosmin Petrescu Current · Mr. Adrian-Florin Lotrean Composition (since 28 April · Mr. Radu-Mircea Florescu 2021*) · Mr. Dragos-Valentin Neacsu · Ms. Valentina

  28. Slide 28: Electrica Group – Corporate Strategic Objectives (updated April 2022)

    Status of Group’s Strategy Implementation Electrica Group – Corporate Strategic Objectives (updated April 2022) Objectives Targets Initiatives (updates) Increase of liquidity with the scope of inclusion in the FTSE Russell • 10% higher overall stock yield during 2022-2026 indexes – Electrica has 2 m

  29. Slide 29: Sustainability is one of the Values of Electrica

    Status of Group’s Strategy Implementation Sustainability is one of the Values of Electrica Next steps: In 2023 Electrica published, for the 7th consecutive year, the Group Elaboration of a Group Sustainability Sustainability report, based on the Strategy GRI reporting Standard Continuing to collect

  30. Slide 30: Relevant Corporate Events in 2023 and up to date (1/4)

    Relevant Corporate Events in 2023 and up to date (1/4) Main Corporate Events  On 27 April 2023, the Ordinary General Meeting of Shareholders (OGMS) and the Extraordinary General Meeting of Shareholders (EGMS), which took place physically and online through the voting platform https://electrica.voti

  31. Slide 31: Relevant Corporate Events in 2023 and up to date (2/4)

    Relevant Corporate Events in 2023 and up to date (2/4) Main Corporate Events  On 27 February 2023, 26 April 2023 and 24 August 2023 ELSA’s Board of Directors decided to extend the duration of the mandate of Mr. Alexandru-Aurelian Chirita, as interim CEO. The current mandate is until 31 December 202

  32. Slide 32: Relevant Corporate Events in 2023 and up to date (3/4)

    Relevant Corporate Events in 2023 and up to date (3/4) Main Corporate Events  On 20 January 2023, the Ministry of Energy, as the concessionaire, amended the concession contract with the Electrica Group for the distribution segment to reflect that, in the event of early termination of the concession

  33. Slide 33: Relevant Corporate Events in 2023 and up to date (4/4)

    Relevant Corporate Events in 2023 and up to date (4/4) Main Corporate Events  On 30 June 2023, Electrica informed its shareholders that its subsidiary Distributie Energie Electrica Romania (DEER) has attracted another EUR 6.25 mil. non-reimbursable financing through the Modernisation Fund.  On 7 J

  34. Slide 34: Shareholder Structure at 30 September 2023

    Shareholder Structure at 30 September 2023 Shareholder Structure Percentage of Percentage of No. of shares with Shareholder share capital Shares voting right (%) (%) Romanian State through the Ministry of 169,046,299 48.7948% 49,7850% Energy European Bank for Reconstruction and 17,355,272 5.0096% 5,

  35. Slide 35: Monthly Volume and Average Price of Electrica's Shares and GDRs

    Shareholdings’ structure and evolution of the shares and GDRs Monthly Volume and Average Price of Electrica’s Shares and GDRs (1 Jan 2023 – 17 Nov 2023) 3,000,000 12.00 2,771,782 2,477,762 2,500,000 10.00 9.64 8.44 2,000,000 1,901,038 8.10 8.00 1,812,392 1,766,120 7.00 1,640,284 1,500,000 1,429,127

  36. Slide 36: Electrica's adjusted closing price vs BET-TR

    Shareholdings’ structure and evolution of the shares and GDRs Electrica’s adjusted closing price vs BET-TR (1 January – 17November 2023) 33.74 35.00 30.00 EL: +20.74% BET-TR: +33.74% 25.00 20.00 20.74 15.00 4.45 10.00 5.00 0.00 3.00 -5.00 -10.00 23 -2 3 -2 3 23 -2 3 -2 3 l-2 3 -2 3 -2 3 -2 3 23 n- b

  37. Slide 37: Electrica's Median monthly volume vs FTSE Russell liquidity threshold

    Electrica’s Median monthly volume vs FTSE RussellShareholdings’ liquidity structure threshold (1 January and evolution 2022 of the shares – and GDRs 31 October 2023) 80,000 76,576 70,000 60,000 50,000 80,892 79,800 79,632 78,705 78,728 77,493 77,330 77,294 40,000 30,000 20,000 19,648 16,995 10,000 0

  38. Slide 38: Appendices

    Appendices Regulatory aspects – Distribution Regulatory aspects – Supply 38 Publi

  39. Slide 39: Important Regulatory Changes – Distribution Activity (1/2)

    Appendices - Regulatory Aspects - Distribution Important Regulatory Changes – Distribution Activity (1/2)  RP4 Regulations on Distribution tariffs · RRR: ANRE approved Order no. 75 of 6 May 2020, which established a regulated rate of return (RRR) for electricity and gas, distribution and transmissi

  40. Slide 40: Important Regulatory Changes – Distribution Activity (2/2)

    Appendices - Regulatory Aspects - Distribution Important Regulatory Changes – Distribution Activity (2/2)  MF instructions for asset capitalization according to the provisions of art. III of GEO no. 119/2022  Capitalized amounts are recorded in accounting through accounting article 208 "Other inta

  41. Slide 41: Changes in Distribution Regulation - RP4

    Appendices Changes in Distribution Regulation - RP4 Regulated Revenue and tariff calculation 1 2 3 4 5 6 7 8 7 Regulated Revenue Reactive en. Regulated Contr. Non- Tariff NL Cost Depreciation RRR2 & 95% profit Revenue OPEX1 controllabl other activ. 9 Forecasted Volume e OPEX 1 · The starting point i

  42. Slide 42: Changes in Distribution Regulation

    Appendices - Regulatory Aspects - Distribution Changes in Distribution Regulation Methodology for determining distribution tariffs - Summary RP4 vs RP3 RP3 RP4 1 RRR January 2019: 5.66% existing RAB & 1% incentive RP4 network invest.(acc. ANRE) Return RRR (7.7%) applied to RAB 29 March 2019–30 April

  43. Slide 43: Changes in Distribution Regulation

    Appendices - Regulatory Aspects - Distribution Changes in Distribution Regulation Methodology for determining distribution tariffs – Comparative elements RP4 vs RP3 RAB & Investment RP3 methodology RP4 methodology 1. RAB includes: assets used for the distribution service, which are recorded into the

  44. Slide 44: Changes in Distribution Regulation

    Appendices - Regulatory Aspects - Distribution Changes in Distribution Regulation Methodology for determining distribution tariffs – Comparative elements RP4 vs RP3 Opex & NL RP3 methodology RP4 methodology Controlable OPEX 1. OpexC 2019 is established based on formula (approved - 1. OpexC 2019 is n

  45. Slide 45: Regulatory Developments – Supply (1/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (1/16) GEO no. 27/2022 on the measures enforceable for the end consumers of the electricity and natural gas market from 1 April 2022 until 31 March 2023, amending and completing

  46. Slide 46: Regulatory Developments – Supply (2/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (2/16) Law No. 206/2022 to approve Government Emergency Ordinance No. 27/2022 regarding the measures applicable to final customers on the electrical energy and natural gas market

  47. Slide 47: Regulatory Developments – Supply (3/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November – Supply (3/16) GEO no. 119/2022 - to amend and supplement the GEO n98xo. 27/2022 on the measures applicable to final customers on the electrical energy and natural gas market during 1 April 2

  48. Slide 48: Regulatory Developments – Supply (4/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (4/16) Law no. 357/2022 - Law on the approval of Government Emergency Ordinance no. 119/2022 for the modification and completion of Government Emergency Ordinance no. 27/2022 on

  49. Slide 49: Regulatory Developments – Supply (5/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (5/16) • maximum 1 leu/kWh, for the full consumption of public and private hospitals, public and private education units, nurseries and public and private providers of social ser

  50. Slide 50: Regulatory Developments – Supply (6/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (6/16) Law no. 5/2023 - Law on the modification and completion of Law no. 220/2008 on the establishment of the system for the promotion of energy production from renewable energy

  51. Slide 51: Regulatory Developments – Supply (7/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (7/16) Law no. 206/2023 - Law on the approval of the Government Emergency Ordinance no. 153/2022 for the amendment and completion of the Government Emergency Ordinance no. 27/202

  52. Slide 52: Regulatory Developments – Supply (8/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (8/16) ANRE Order no. 5/2023 — Order for the approval of the Regulation for the supply of electricity to final customers, as well as for the modification and completion of some o

  53. Slide 53: Regulatory Developments – Supply (9/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (9/16) ANRE Order no. 9/2023 — Order regarding the establishment of the mandatory quota for the purchase of green certificates for the year 2022 • enter into force on 1 March 202

  54. Slide 54: Regulatory Developments – Supply (10/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (10/16) ANRE Order no. 13/2023 — Order for the approval of the framework contract for the supply of electricity in the universal service regime, the general conditions for the su

  55. Slide 55: Regulatory Developments – Supply (11/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (11/16) ANRE Order no. 19/2023 — Order for the amendment of the green certificate invoicing procedure, approved by the Order of the president of the National Energy Regulatory Au

  56. Slide 56: Regulatory Developments – Supply (12/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (12/16) ANRE Order no. 18/2023 — Order regarding the approval of the Methodology for monitoring the wholesale electricity market • modifying and completing the Methodology by upd

  57. Slide 57: Regulatory Developments – Supply (13/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (13/16) ANRE Order no. 59/2023 — Order regarding the approval of the Procedure for the recovery of improperly issued green certificates and for the modification of the Regulation

  58. Slide 58: Regulatory Developments – Supply (14/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (14/16) ANRE Order no. 67/2023 — Order regarding the approval of the tariff for the purchase of system services for the transport and system operator Compania Nationala de Transp

  59. Slide 59: Regulatory Developments – Supply (15/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (15/16) ANRE Order no. 76/2023 — Order regarding the amendment of the annex to the Order of the President of the National Energy Regulatory Authority no. 139/2022 for the approva

  60. Slide 60: Regulatory Developments – Supply (16/16)

    Appendices - Regulatory Aspects - Supply Regulatory-related Developments entered in force until 15 November 2023 – Supply (16/16) ANRE Order no. 86/2023 — Order on the modification of the Annex to the Order of the President of the National Energy Regulatory Authority no. 16/2020 on the approval of t

  61. Slide 61: Glossary

    Glossary ANRE Romanian Energy Regulatory Authority IFRS International Financial Reporting Standard B2B Business to Business IMS Integrated Management System BET-TR Bucharest Exchange Trading - Total Return Index IPO Initial Public Offering BM Balancing Market LSE London Stock Exchange BoD Board of D

  62. Slide 62: 2023 Financial Calendar

    2023 Financial Calendar • 7 March Publication of the 2022 financial annual results - documents for the Ordinary General Meeting of Shareholders • 13 March Investor and analyst teleconference for presentation of 2022 consolidated financial results • 27 April Annual General Meeting of Shareholders • 2

  63. Slide 63: Investor Relations & Disclaimer

    Investor Relations & Disclaimer • Email: ir@electrica.ro • Web: https://www.electrica.ro/en/investors/ Investor Relations • Tel: +40 (0)21.208.50.35; +40 731 796 111 • Address: 9 Grigore Alexandrescu Str., 1st District, Bucharest, 010621 This document was prepared by Electrica for the presentation o

  64. Slide 64: Q & A

    Q&A Executive Management of Electrica Mr. Alexandru- Mr. Stefan Frangulea Aurelian Chirita Chief Financial Officer Chief Executive Officer 2017 Ms.2018 Livioara Sujdea Chief Distribution Ms. Andreea Lambru Officer Chief Business Development Officer https://www.electrica.ro/en/investors/corporate-gov

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