El5-Ener · RUS:ELFV
El5-Ener — Enel OGK-5 — Investor Presentation (September 2013)
27 slides from El5-Ener's investor presentation, September 2013
Slide 1: Enel OGK-5 Investor Presentation
Enel OGK-5 Investor Presentation September 2013
Slide 2: Agenda
Agenda • Enel’s overview: international expansion • Enel OGK-5 in brief • Power plants • 2008-2012 results Major milestones Market evolution and energy margin Fixed costs and EBITDA CAPEX and net debt 2012 key results and achievements • 1H 2013 results Financial highlights Revenues and
Slide 3: Enel's overview: international expansion
Enel’s overview: international expansion 1. As of December 31st 2. Including 24 GWh produced in Ireland, out of perimeter since October 2012 3 3. Including gas clients
Slide 4: Enel OGK-5 in Brief
Enel SpA Enel OGK-5 Investor Relations Investor Relations Enel OGK-5 in Brief Key facts Enel OGK-5 is a wholesale generating company spun off from RAO UES as part of the Russian power sector reform Ownership structure1 Majority stake owned by Enel S.p.A., a global utility Enel OGK-5 owns four
Slide 5: Power Plants
Enel SpA Enel OGK-5 Investor Relations Investor Relations Power Plants1 Asset location and description Fuel mix Moscow Advantages All plants in 1st price zone Favourable fuel mix Price zone I (1,005 RUR/MWh)2 Two highly efficient CCGTs commissioned under capacity Price zone II contracts (DPM)
Slide 6: OGK-5 – 2012 Results
Enel OGK-5 investor presentation 2008 – 2012 Results 6
Slide 7: 2008-2012 results: Major milestones
2008-2012 results Major milestones 2008 2009 2010 2011 2012 1H 2009 LT financing secured at 2H 2009 favorable terms in spite of crisis Zenith project 2H 2010 2H 2011 1H 2008 kick off Reftinskaya Two new CCGT 0.5b EUR raised Enel S.p.A. by 2010 at 4% 90 initiatives in revamping units commissioned acq
Slide 8: Market evolution and energy margin
2008-2012 results Market evolution and energy margin Energy margin evolution (BRUR)1 Fuel cost management Strong dark spread increase over 5 years New CCGTs 1.6 BRUR margin from power sales and 4.2 BRUR capacity Market liberalization revenues generated in 2012 regulated power sales shrinking to ca.
Slide 9: Fixed costs and EBITDA
2008-2012 results Fixed costs and EBITDA Costs evolution EBITDA evolution (BRUR)1 (Th RUR/MW installed, CPI adjusted) Fixed costs O&M costs Key cost cutting initiatives implemented: - O&M personnel restructuring and 1st wave of 3x EBITDA increase over 5 years restructuring of staff functions stemmin
Slide 10: CAPEX and net debt
2008-2012 results CAPEX and net debt CAPEX (BRUR)1 Leverage evolution (BRUR) Net debt Net debt/EBITDA Over 70 BRUR invested in 2008-12 Leverage peak passed including ~30 BRUR into CCGTs at in 2010-2011 Nevinnomysskaya and Sredneuralskaya 1 CAPEX paid 10
Slide 11: 2012 key results and achievements
2008-2012 results 2012 key results and achievements Key results Key facts Earnings growth maintained despite weak market prices Operating results (GWh) Strengthened and enlarged cooperation with 2011 2012 % key fuel suppliers Net power output 42 433 44 509 5% New shareholders: 4 Russian and Internat
Slide 12: 1H 2013 Results
Enel OGK-5 investor presentation 1H 2013 Results 12
Slide 13: Financial Highlights (Mn RUR)
Enel OGK 5 Enel OGK-5 1H 2013 Results Investor Relations Financial Highlights (Mn RUR)1 1H 20122 1H 2013 % Revenues 31,238 32,656 +5 EBITDA 7,404 8,311 +12 EBITDA margin (%) 24 25 Net Income 2,694 2,005 -26 Adjusted net income3 2,694 2,900 +8 Net Debt 24,9684 25,441 +2 EBITDA/Net financial expenses5
Slide 14: Revenues and costs (Bn RUR)
Enel OGK 5 Enel OGK-5 1H 2013 Results Investor Relations Revenues and costs (Bn RUR) Operating revenue breakdown Variable costs 19.3 19.3 32.7 2.4 2.4 31.2 2.3 Fuel 1.9 16.9 16.9 Purchased power 8.5 7.7 Power 1H12 1 1H13 2 Capacity 21.6 21.9 Heat and other Fixed costs 5.1 5.3 0.4 0.6 O&M manageable
Slide 15: Net Debt Evolution
Enel OGK 5 Enel OGK-5 1H 2013 Results Investor Relations Net Debt Evolution Net Debt (Mn RUR) Hedged Debt on Total Debt +473 8% 17% Unhedged 83% 92% Hedged 24,968 -6,274 +730 25,441 31Dec12 30Jun13 +1,189 +4,828 Net financial FX charges Average Cost of Debt Cash flow from Capex operations 1H 2012 1H
Slide 16: 2013-2017 strategic update
Enel OGK-5 investor presentation 2013 - 2017 strategic update 1 All numbers presented within this chapter are under Enel IFRS IAS unless otherwise indicated 16
Slide 17: New DAM price scenario
2013-2017 strategic update New DAM price scenario Impact of new entrants Gas vs. DAM assumptions1 TWh New entrants production replaces ‘old’ TPP’s DAM price lags behind gas tariff growth Net capacity additions in Enel High risk of gas spreads OGK-5 markets in 2013-17: contraction Center: +8.3 GW Sou
Slide 18: Key priorities
2013-2017 strategic update Key priorities Market environment and regulatory Efficiency Optimizing plant operations in response Leverage on Enel Group’s expertize in to the evolving market competition delivering excellence projects Continuous monitoring and proactive Optimization of fuel costs via co
Slide 19: Technical KPIs
2013-2017 strategic update Technical KPIs Optimizing plant operations in response to the evolving market competition Installed capacity, GW CCGT and Coal KPIs CCGT availability Coal: 25 MW increase due to revamping 91% 78% CCGT: unchanged Conventional gas: 80MW 2012 2017 decrease due to decommis- si
Slide 20: Energy margin
2013-2017 strategic update Energy margin Optimization of fuel costs via continuous DAM sales (RUR/MWh)1 improvement of supplier portfolio Energy margin, BRUR2 ~32 ~27.5 Capacity sales (TH RUR/MW/month) ‘Kdam’ revision Energy margin growth secured by fuel portfolio optimization and increase in equipm
Slide 21: Fixed costs
2013-2017 strategic update Fixed costs Leverage on Enel Group’s expertize in delivering excellence projects O&M costs Key cost containment actions (Th RUR/MW installed, CPI adjusted) Moderate increase in Final stage of O&M restructuring: Restructuring of O&M costs attributable O&M area, introducti
Slide 22: EBITDA
2013-2017 strategic update EBITDA (BRUR) ~21 ~16.5 2012-2015 EBITDA 15 CAGR: 12% Challenging targets to be achieved by continuous efforts in all company areas 22
Slide 23: CAPEX
2013-2017 strategic update CAPEX Focus on life-extension and environmental investments assuring stable profit generation in the long-term CAPEX 2013-17 Key features Total CAPEX: CAPEX for 2013-17 reduced versus old business plan ~42.5 BRUR RGRES and SGRES revamping projects modified CAPEX by yea
Slide 24: Cash flows
2013-2017 strategic update Cash flows CAPEX optimization to ensure sound cash flow generation Cash flow (BRUR) Operating CF + WC CAPEX ~5 ~5 Debt servicing Inflow Free cash flow Outflow Solid positive free cash flows 24
Slide 25: Conclusions
2013-2017 strategic update Conclusions 2008 2012 2013-17 A prominent player on One of sector leaders in Maintaining the solid the generation market profitability track record of constant earnings growth A promising fuel mix Benchmark setter in cost management Longer-term confidence Acquired by forei
Slide 26: Disclaimer
Enel OGK-5 investor presentation Disclaimer This presentation contains certain statements that are neither reported financial results nor other historical information (“forward-looking statements”). These forward-looking statements are based on Enel OGK-5 ’s current expectations and projections abou
Slide 27: Contacts
Enel OGK-5 investor presentation Contacts Alexey Leonov (Head of IR) +7 495 539 31 31 ext. 7631 [email protected] Visit our website at: www.ogk-5.com (Investor Relations) 27