Naturgy Energy Group, S.a. · BME:NTGY
Naturgy Energy — Q1 2021 Earnings Presentation
29 slides from Naturgy Energy's earnings presentation, Apr 28, 2021
Slide 1: 1Q21 Results
1Q21 Results 28 April 2021
Slide 2: Scenario, Recent developments, Consolidated results
Scenario Recent developments Consolidated results Results by business unit Summary
Slide 3: Scenario
Naturgy y Scenario
Slide 4: Energy demand evolution
01. Scenario Energy demand evolution Spain Panama Mexico Brazil 10% 30% 15% 140% 5% 20% 5% 100% 10% 0% 60% 0% -5% -5% -10% 20% -10% -20% -15% -20% Spain Chile Argentina 15% 15% 120% 10% 11% 90% 5% 7% 60% 3% 0% 30% -1% -5% 0% -10% Weekly avg. 1Q21 vs. 1Q20 Electricity Gas Recovery of energy demand in
Slide 5: Energy markets evolution
01. Scenario Energy markets evolution Spanish electricity market Brent (USD/bbl) NBP (USD/MMBtu) (Pool) (€/MWh) 60.9 7.0 45.2 50.3 34.9 3.8 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 Henry Hub (USD/MMBtu) JKM (USD/MMBtu) CO2 (€/t) 11.6 37.4 2.7 2.1 22.8 4.8 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 Improvement of energy sce
Slide 6: FX evolution
01. Scenario FX evolution Chile Brazil Argentina 0.0011 0.0011 0.20 0.15 0.014 0.009 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 Mexico Panama 0.05 0.91 0.04 0.83 1Q20 1Q21 1Q20 1Q21 Ongoing devaluation of main currencies 6 Source: Bloomberg
Slide 7: Recent developments
Naturgy y Recent developments
Slide 8: IFM offer process
02. Recent developments IFM offer process Up to 220,000,000 shares, equivalent to Required regulatory approvals 22,689% of Naturgy's share capital Offer price of 23 €/share adjusted downwards to Spanish Council of Ministers 22.37 €/share by the dividend of 0.63 €/share paid on 17 March 2021 CNMV Ret
Slide 9: Other developments
02. Recent developments Other developments Hamel Renewables Solution to UFG CGE Electricidad acquisition in the US Completion of the agreement between Progress on the sale of Naturgy’s entire Acquisition of 100% of Hamel Naturgy, the Government of Egypt and equity shareholding (96.04%) to China Rene
Slide 10: Consolidated results
Naturgy y Consolidated results
Slide 11: Key highlights
03. Consolidated results Key highlights Key figures (€m, % vs. 1Q20) Solid results in Networks Spain supported by operational Ordinary EBITDA Ordinary Net income improvements FX depreciation continued weighing in LatAm activities Structural challenges persist in energy management amid signs of impro
Slide 12: Ordinary EBITDA evolution by key drivers (€m)
03. Consolidated results Ordinary EBITDA evolution by key drivers (€m) 1,050 35 58 1,029 (7) (46) (26) (35) m Ordinary Demand FX Tariff/prices & EMPL Regulation Others Ordinary EBITDA contractual step down EBITDA 1Q20 changes 1Q21 Stable results despite ongoing pandemic 12
Slide 13: EBITDA evolution by business unit (€m)
03. Consolidated results EBITDA evolution by business unit (€m) 156 1,050 21 20 17 1,029 982 (53) (7) (19) 894 (47) Including FX impact: m EBITDA Non-ordinary Ordinary Networks Networks Energy Renewables Supply Other Ordinary Non-ordinary EBITDA 1Q20 items EBITDA Spain LatAm management EBITDA items
Slide 14: Net Income evolution (€m)
03. Consolidated results Net Income evolution (€m) 60 383 312 20 323 113 (9) 199 (1,219) Net Non-ordinary Ordinary Activity Financial result Ordinary Non-ordinary Net income items net and others net items income 1Q20 income income 1Q21 1Q20 1Q21 Stable activity coupled with continued financial optim
Slide 15: Cash flow and net debt evolution (€m)
03. Consolidated results Cash flow and net debt evolution (€m) Cash flow Net debt 1Q21 vs. 1Q20 Ordinary EBITDA 1,029 -2% (%): avg. cost of debt2 Non-ordinary items (47) EBITDA 982 -10% Taxes 58 13,612 605 105 235 13,597 Net interest cost (122) (42) (535) (383) 11,027 Other non-cash items (37) (2,57
Slide 16: Results by business unit
Naturgy y Results by business unit
Slide 17: Networks Spain
04. Results by business unit Networks Spain EBITDA evolution by business line (€m) Highlights 393 13 8 414 381 Gas networks: operational improvements partially offset 71 322 by new regulatory framework (33) Electricity networks: growth driven by investment and efficiencies EBITDA Non-ordinary Ordina
Slide 18: Networks LatAm
04. Results by business unit Networks LatAm EBITDA evolution by business line (€m) Highlights 225 4 229 3 Chile gas: higher demand in gas distribution partly offset by (18) 176 5 181 lower margins in supply (18) (7) (13) Brazil gas: tariff updates staggered throughout the year, -€1m -€15m -€8m -€3m
Slide 19: Energy management
04. Results by business unit Energy management EBITDA evolution by business line (€m) Highlights 36 37 218 5 223 188 10 198 Markets and procurement: improved gas procurement (5) and scenario (38) (10) - €1m -€6m - -€5m International LNG: price recovery not translated into margins due to significant
Slide 20: Renewables
04. Results by business unit Renewables EBITDA evolution by business line (€m) Highlights 120 5 125 118 Spain: higher wind and hydro resource offset by higher 3 114 (6) taxes (4) (4) - - -€3m Australia: lower margins on quarterly mark to market of existing PPAs vs. 1Q20 FX: -€ m LatAm: new wind and
Slide 21: Supply
04. Results by business unit Supply EBITDA evolution by business line (€m) Highlights 17 127 110 116 Gas supply: mild recovery of gas margins offset by lower 33 (11) sales to wholesale Europe 77 Power supply: lower sales to SMEs and increased margin pressure on industrial segment. Signing of PPAs wi
Slide 22: Summary
Summary
Slide 23: Resilient quarter and ongoing portfolio optimization
05. Summary Networks Spain remained solid while LatAm and FX weakness persisted Structural challenges persist in energy management amid signs of improvement in scenario Growth in renewable installed capacity in stable geographies with strong currencies Roll out of transformation initiatives in suppl
Slide 24: Appendix
Naturgy v Appendix 24
Slide 25: Alternative Performance Metrics (i/ii)
Alternative Performance Metrics (i/ii) Naturgy's financial disclosures contain magnitudes and metrics drafted in accordance with International Financial Reporting Standards (IFRS) and others that are based on the Group's disclosure model, referred to as Alternative Performance Metrics (APM), which a
Slide 26: Alternative Performance Metrics (ii/ii)
Alternative Performance Metrics (ii/ii) Alternative performance Reconciliation of values Definition and terms Relevance of use metrics 31 March 2021 31 March 2020 Current and non-current financial debt Gross financial debt - "Cash and cash Euros 13,612 million1 = 17,539 – 3,927 – Net financial debt
Slide 27: ESG Metrics
ESG Metrics ESG metrics 1Q21 1Q20 Change Comments Health and safety Accidents with lost time1 units 4 1 - Increase in accident ratio as a consequence of the exceptionally low 1Q20, but improving significantly from previous normalized quarters LT Frequency rate2 units 0.19 0.04 - Environment GHG Emis
Slide 28: Disclaimer
Disclaimer This document is the property of Naturgy Energy Group, S.A. (Naturgy) and has been prepared for information purposes only. This communication contains forward-looking information and statements about Naturgy. Such information can include financial projections and estimates, statements reg
Slide 29: Capital Markets contact
This presentation is property of Naturgy Energy Group, S.A. Both its content and design are for the exclusive use of its personnel. ©Copyright Naturgy Energy Group, S.A. CAPITAL MARKETS Tel. 34 912 107 815 e-mail: capitalmarkets@naturgy.com website: www.naturgy.com