Public Power Corporation S.a. · ATHEX:PPC
Public Power — PPC — Q1 2024 Earnings Presentation
36 slides from Public Power's earnings presentation, May 20, 2024
Slide 1: Financial Results Q1 2024
Financial Results Q1 2024 20th May 2024 Q1 2024 results | May 2024 1
Slide 2: Disclaimer
Disclaimer This presentation and the information contained herein (unless otherwise indicated), including any accompanying oral presentation, question and answer session and any other document or materials distributed at or in connection with this presentation, has been prepared by PPC S.A. (“PPC”,
Slide 3: Today's Presenters
Today’s Presenters Georgios Konstantinos Stassis Alexandridis Chairman & CEO CFO Q1 2024 results | May 2024
Slide 4: Agenda
Agenda Georgios Stassis 1 Highlights of the period & Outlook Konstantinos Alexandridis 2 Financial performance Georgios Stassis 3 Final Remarks and Conclusions A Appendix Q1 2024 results | May 2024
Slide 5: Highlights of the period & Outlook
Georgios Stassis Chairman & CEO 1 Highlights of the period & Outlook Q1 2024 results | May 2024
Slide 6: Key highlights of Q1 2024 performance
Key highlights of Q1 2024 performance Operational Investments Renewables Energy mix Profitability €0.46bn Recuring EBITDA €0.5bn 4.7GW1 capacity Lignite output + €0.18bn vs Q1 2023 as per planned investments ~70% of the residual capacity down by 27% vs Q1 2023 acceleration needed for 2026 target sec
Slide 7: Making PPC greener and de-risking operations
Making PPC greener and de-risking operations RES capacity (GW)1 RES & Distribution investments (€bn) CO2 emission intensity (tons CO2/MWh) 2 +1.2 +123% -24% 4.7 0.4 0.65 0.7 3.5 0.1 0.50 0.2 4.0 0.3 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 1. Including Large Hydro. 2. Scope 1 emissions divide
Slide 8: Digitalization of Distribution activities and performance improvement is a key priority
Digitalization of Distribution activities and performance improvement is a key priority Reliability indices Network Network Length (k km) Customers (m) • Consumed Energy which is 0.5 0.6 telemetered through smart SAIFI 0.3 0.3 meters in Greece, is increasing (times) 10.9 10.9 378 383 as smart meters
Slide 9: Market share reduction driven by rationalization of customer base in Greece and Romania
Market share reduction driven by rationalization of customer base in Greece and Romania Electricity Sales evolution (TWh) Customer base (m) Q1 2024 Domestic Demand (TWh) 61% Greece (Country2) Greece (Mainland3) 51% 21% +2.2% +0.7% 16% Market Share1 13.2 13.5 12.4 12.4 +11% 7.7 8.8 Gas 6.9 0.3 custom
Slide 10: Focusing on customer experience enhancing our offering
Focusing on customer experience enhancing our offering Governing Principles Key Metrics Q1 2024 51% Market Share 11.8% Churn per segment Market Share 16% 4.4% 3.8% 4.9% 5.2% 6% 4% 1 Target • Focus on retention of high & Churn Segments priority segments Low Value Medium High Value Total Electricity G
Slide 11: Turning PPC "greener" in terms of capacity, generation and emissions
Turning PPC “greener” in terms of capacity, generation and emissions Installed capacity (GW)1 Generation (TWh) CO2 Emissions (m tons)4 39% +1.2GW of RES 33% Market Share Significant reduction due to -0.9GW of lignite 14% cleaner energy mix 14% Market Share² +0.2 +8% 10.8 4.6 -18% 10.6 4.3 2.8
Slide 12: ~70% of the residual capacity needed for 2026 target secured
~70% of the residual capacity needed for 2026 target secured Snapshot of RES projects maturity (excl. Large Hydro) RES (incl. Large Hydro) 5.5 +4.2 RES (excl. Large Hydro) 0.56 8.9 Large Hydro 0.71 1.03 4 GW needed 5.5 for 2026 +26MW WP in target 4.7 Romania in 1.75 operation since 1.5 Mar. 2024 1.5
Slide 13: Further enhancing our pipeline to meet mid/long term goals
Further enhancing our pipeline to meet mid/long term goals Integrated SE Europe Energy Trading Portfolio Trading Synergies Installed Capacity - Trading Portfolio Total: 4.7 GW 4.3 GW • Solid pipeline in Hydro 3.2 GW Lignite 1.6 GW SE Europe region Solar 0.5 GW Gas 2.7 GW Onshore Wind 0.9 GW • Curren
Slide 14: Paving the way to become a regional clean Powertech player
Paving the way to become a regional clean Powertech player Key milestones so far in 2024 East-Med Corridor Ongoing integration 185.000 homes Financing closed Onboarding Pipeline First steps on of Romanian passed Project started enhancement of Data Centers & operations Ready for execution 2 G
Slide 15: Financial performance
Konstantinos Alexandridis CFO 2 Financial performance Q1 2024 results | May 2024
Slide 16: Strong profitability despite lower power prices
Strong profitability with despite lower power prices Key Financials Revenues (€bn) EBITDA Recurring (€bn) Net income (€bn) Key Highlights 2.0 1.9 +64% 0.09 No material change in 0.46 revenues since Romania 0.05 contribution offsets 0.28 normalization of wholesale market prices Significant increase o
Slide 17: Bearish trend in Q1 2024 mitigated by supply and geopolitical risks
Bearish trend in Q1 2024 mitigated by TTF supply and geopolitical risks • • TTF continued the downtrend in Q1 2024 Gas prices were falling during January and February, as mild weather, along with weak demand, stable supply and high RES production led the way to a bearish trend TTF (€/MWh_th) 1 CO2 (
Slide 18: Revenues decline due to lower wholesale market prices offset by Romania contribution
Revenues decline due to lower wholesale market prices offset by Romania contribution in Q1 2024 Revenues (€bn) Revenues reduction due to: -3% 1.99 • Lower wholesale market 1.94 Q1 2024 prices that continued Greece their downward trend in Romania Q1 2024 28% • Decrease in volume €1.9bn attributable
Slide 19: EBITDA improvement from both distribution and integrated activities
EBITDA improvement from both distribution and integrated activities Recurring EBITDA Evolution by Business (€bn) EBITDA Q1 2024 +64% 0.46 Romania 0.13 17% 0.21 0.28 0.05 Distribution 0.08 €0.46bn Integrated 0.25 0.20 Business 83% Q1 2023 Integrated Distribution Q1 2024 Greece Business • Significant
Slide 20: Increased Integrated Business profitability due to the contribution from Romania
Increased Integrated Business profitability due to the contribution from Romania in Q1 2024 Recurring EBITDA evolution (€bn) Resilient profitability despite lower power +27% prices in Q1 2024 0.25 0.04 0.20 0.01 Contribution from activities in Romania only for Q1 2024 Q1 2023 Greece Romania Q1 2024
Slide 21: Higher profitability in Distribution driven by increase in Greece and Romania
Higher profitability in Distribution driven by increase in Greece and contribution from Romania in Q1 2024 Recurring EBITDA evolution (€bn) Improved profitability vs Q1 2023 due to: +151% • Q1 2023 shortfall as an effect of the delay in 0.21 the application of new distribution charges for 2023 Requi
Slide 22: Improved Net Income driven by the EBITDA uplift
Improved Net Income driven by the EBITDA uplift Net Income evolution (€m) +68% 179 -32 -62 86 -35 51 -14 -1 0 Q1 2023 Recurring EBITDA Contracts D&A Net financial Tax Devaluation of Share of profit Q1 2024 revaluation expenses assets/Capital in associated Gain from spin offs companies Major Drivers
Slide 23: Continuing to invest to achieve the targets set in our Plan
Continuing to invest to achieve the targets set in our Plan Investments1 (€m) +100% o/w PPC Rom: Significant uplift driven by: €138m 501 11 • Distribution capex to enhance 4 11 Supply/E-mobility/Other and digitalize networks in Greece 54 Digitalization/Efficiency and Romania Telecom Flexible Generat
Slide 24: Free Cash Flow in line with projections
Free Cash Flow in line with projections Free Cash Flow evolution (€m) Change in WC breakdown evolution (€m) Q123 FY23 Q124 144 Customer Trade Receivables +49 +86 +98 459 437 CO2 effect -561 -281 -83 -167 Hedging +159 +174 +115 35 Other -11 -349 +140 -297 -320 Total -701 +119 -167 -178 -37 2 3 Q1 202
Slide 25: Liquidity position and debt profile; Credit Ratings
Liquidity position and debt profile Credit Ratings Liquidity position (€bn) Long Term debt - Analysis1 (€bn) 35% ESG Financing BB- 2.5 €5 bn 2.5 44% €5.9 bn 56% Stable Outlook Affirmed PPC’s rating at ‘BB- expecting continued strong business performance and disciplined financial management Cash
Slide 26: Slight Net Debt increase as expected in line with the planned growth strategy
Slight Net Debt increase as expected in line with the planned growth strategy Net Debt evolution (€bn) 2x 2x 0.2 0.10 0.03 0.03 3.38 • Net debt increase mainly 0.01 0.18 due to higher investments 3.17 -0.04 0.32 0.01 • Financial position remains disciplined with Net -0.44 Leverage (PF) at 2x, well b
Slide 27: Final Remarks and Conclusions
Georgios Stassis Chairman & CEO 3 Final Remarks and Conclusions Q1 2024 results | May 2024
Slide 28: Believing in our equity story and enhancing shareholder remuneration
Believing in our equity story and enhancing shareholder remuneration Share buyback to be renewed1 Stock grants to Future potential Cancellation & executives PPC is (LTIP) the largest acquisitions power generation company, 1 reductionand sole distributor of electricity, of share biggest power supply
Slide 29: Concluding remarks
Concluding remarks Ramp up of Leveraging on our investments in integrated RES and model - Distribution, resilience & maintaining at opportunities to Gradually Strong Q1 2024 the same time a Focus on the further grow PPC execution of the rendering PPC to a results with solid financial Strategic plan
Slide 30: Appendix
A Appendix Q1 2024 results | May 2024
Slide 31: Sustainability is embedded in all PPC strategic pillars
Sustainability is embedded in all PPC strategic pillars, with strong delivery across all businesses PPC strategic pillars Sustainability KPIs Q1 2024 Δ vs Q1 2023 Clean & Lignite installed capacity 1.6 GW -0.9 GW resilient RES capacity 4.7 GW +1.2 GW generation RES capacity on total 43.1 % +9 p.p. p
Slide 32: ESG Ratings
ESG Ratings B- 42.2 BBB BBB Bronze 38.7 D- Ecovadis N.A. 2022 2023 2022 2023 2022 2023 2022 2023 [D- - A] [100 – 0] [CCC – AAA] [Bronze-Platinum] Aiming at further 37 improving ESG ratings 2.6 C 2.1 driven by Business Plan 25 implementation and continuous engagement with all ESG rating N.A. agencies
Slide 33: Overview of PPC's Asset Portfolio (Greece)
Overview of PPC’s Asset Portfolio (Greece) Asset Portfolio Installed Capacity (MW) as of 31.03.2024 Lignite Power Plant Hydro Power Plant Natural Gas Gas-fired Power Plant 27% RES¹ Oil Power Plant 39% Lignite Mine Center 10.106 Small Hydro Power Plant 18% Photovoltaic Power Plant 16% Oil Wind Park H
Slide 34: Overview of PPC's Asset Portfolio (Romania)
Overview of PPC’s Asset Portfolio (Romania) Asset Portfolio Installed Capacity (MW) as of 31.03.2024 Solar 14% 681 86% Wind Q1 2024 Generation Mix (GWh) 6% Solar 369 Wind parks (WP) Wind 94% Photovoltaics (PV) Electricity distribution network Source: Company Information. Q1 2024 results | May 2024 3
Slide 35: Glossary
Glossary BoD Board of Directors MW Megawatt CAGR Compound Annual Growth Rate MWh Megawatt hour CAPEX Capital Expenditure NCI Non-Controlling Interest CCGT Combined Cycle Gas Turbine ND Net Debt CDP Carbon Disclosure Project NPS Net Promoter Score CEO Chief Executive Officer Opex Operating Expenses C
Slide 36: Financial Calendar – IR Contacts
Financial Calendar – IR Contacts What’s next? Date Event 27.06.2024 Annual General Meeting of the Shareholders 22.07.2024 Ex-dividend date 23.07.2024 Record date 26.07.2024 Dividend payment for the year 2023 06.08.2024 Announcement of H1 2024 financial results 07.11.2024 Announcement of the 9M 2024