Ignitis Grupe Ab · OMXVSE:IGN1L
Ignitis Grupe Ab — 9M 2023 Earnings Presentation
38 slides from Ignitis Grupe Ab's earnings presentation, Nov 21, 2023
Slide 1: Investor presentation: 9M 2023 results
Investor presentation: 9M 2023 results 21 November 2023
Slide 2: Legal notice
Investor presentation / 9M 2023 results Legal notice This document has been prepared by AB „Ignitis grupė” (Ignitis Group) solely for informational purposes and must not be relied upon, disclosed or published, or used in part for any other purpose. The document should not be treated as investment ad
Slide 3: Agenda
Investor presentation / 9M 2023 results Agenda 1. Highlights 9M 2023 4 2. Financial highlights 9 3. Outlook 2023 19 Darius Maikštėnas, CEO 4. Supplementary information 23 Jonas Rimavičius, CFO 3 /38
Slide 4: Highlights 9M 2023
Investor presentation / 9M 2023 results Highlights 9M 2023 4 /38
Slide 5: Highlights 9M 2023
Investor presentation / 9M 2023 results Highlights 9M 2023 Strategy Sustainability Finance Start of construction of the Continued leadership in Record high investments, largest onshore wind farm in the sustainability – upgraded ‘ISS’ BBB+ (stable outlook) credit Baltics, and final investment ESG ris
Slide 6: Strong strategic performance with significant progress in renewables
Investor presentation / 9M 2023 results Strong strategic performance with significant progress in renewables Important milestones achieved across all Green Generation Portfolio development phases OFFSHORE WIND ONSHORE WIND SOLAR HYDRO BIOMASS & WTE Winners in Lithuania. +63 MW installed FID for 239
Slide 7: Strong strategic performance with significant progress in renewables
Investor presentation / 9M 2023 results Green Generation Strong strategic performance with significant Portfolio split progress in renewables By technology Secured Capacity reached 2.9 GW Offshore wind Biomass & WtE 0.1 GW 0.7 GW Hydro Onshore wind 1.1 GW 6.3 2.7 GW Green Generation Portfolio GW Sol
Slide 8: Continued leadership in sustainability
Investor presentation / 9M 2023 results Continued leadership in sustainability Places the Group among top utility peers globally GHG emissions1 Electricity Generated (net), Safety million t CO2 -eq Green Share of Generation TRIR 3.80 3,00 TWh, % 110% 4,00 3.65 2,50 0.18 (3.9%) 2.10 0.18 3,50 0.35 2,
Slide 9: Financial highlights
Investor presentation / 9M 2023 results Financial highlights 9 /38
Slide 10: Highlights 9M 2023
Investor presentation / 9M 2023 results Highlights 9M 2023 KPIs1, EURm 9M 2023 9M 2022 ∆ Adjusted EBITDA and Adjusted Net Profit decrease Adjusted EBITDA 345.3 357.2 (3.3%) driven by lower captured electricity prices but remains at Adjusted Net Profit 193.0 202.4 (4.6%) historically high levels supp
Slide 11: Adjusted EBITDA
Investor presentation / 9M 2023 results Adjusted EBITDA Historically high level, but short-term decline due to lower captured electricity prices YoY Adjusted EBITDA APM EURm Development across business segments 392,0 357.2 345.3 342,0 (3.3%) (31.4) EURm Lower captured electricity prices and intensiv
Slide 12: Green Generation
Investor presentation / 9M 2023 results Secured Capacity Green Electricity Generated (net), Green Generation MW Green Share of Generation TWh, % Remains the largest contributor to the Group‘s Adjusted EBITDA +1.3 GW 90% 89% 4 +0.9 GW 90% 3,5 2.9 1.23 1.25 80% 3 2.5 0.19 0.20 70% 0.7 60% 0.34 0.37 2,
Slide 13: Networks
Investor presentation / 9M 2023 results Distribution volumes Technological losses Networks TWh % Better results driven by higher RAB -6.2% 7.50 7.03 -13.0% 4.66 -0.9 pp 4.06 4.6% Adjusted EBITDA development APM 3.7% -0.2 pp EURm 2.2% 2.0% 9M 2022 9M 2023 9M 2022 9M 2023 Electricity Electricity Natur
Slide 14: Reserve Capacities
Investor presentation / 9M 2023 results Capacity of services provided Reserve Capacities MW +0.0% Utilised an option to earn additional return in the market on top of the regulated return by 1,055 1,055 fixing positive forward Clean Spark spread 164 164 519 Adjusted EBITDA development APM 891 EURm 3
Slide 15: Customers & Solutions
Investor presentation / 9M 2023 results Customers & Solutions Result driven by lower supply volumes and natural gas temporary effects Electricity retail sales Natural gas sales TWh TWh Adjusted EBITDA development APM EURm -18% 7.03 5.87 -30% 4.84 4.94 12% -12% 1.93 1.70 35.3 9M 2022 9M 2023 9M 2022
Slide 16: Investments
Investor presentation / 9M 2023 results Investments Record high investments due to the investments made in Green Generation and Networks Investments APM EURm Key drivers 633.7 +72.3% Investments were mostly directed towards new onshore wind farm projects in Lithuania and +195.5 EURm Poland, mainly t
Slide 17: Net Working Capital and Free cash flow
Investor presentation / 9M 2023 results Net Working Capital and Free cash flow Lower NWC mainly driven by lower level of inventory and energy prices FCF APM 700 Net Working Capital APM EURm 600 EURm 443.3 500 400 9M 2022 9M 2023 90 70 50 30 10 -10 300 -30 216.8 -50 +520.3 -70 (51.1%) -90 -110 -130 (
Slide 18: Leverage metrics
Investor presentation / 9M 2023 results Leverage metrics Strong leverage metrics driven by negative FCF Net debt/Adjusted EBIDTA LTM, Net debt development APM FFO LTM/Net Debt EURm Times, % 49.1% 4,0 60,0% 45.2 32.2 633.7 71.5 39.6% 3,5 50,0% 3,0 40,0% (345.3) 2,5 2.4 30,0% 1,114.1 2.1 986.9 (226.5)
Slide 19: Outlook 2023
Investor presentation / Outlook 2023 Outlook 2023 19 /38
Slide 20: Guidance 2023
Investor presentation / Outlook 2023 Guidance 2023 Adjusted EBITDA of 430–480 EURm guidance Adjusted EBITDA APM Main drivers (no changes vs 28 Feb 2023 guidance) EURm • Expected lower average electricity price Current compared to 2022. 500,0 469.3 430–480 • Partly offset by launch of new assets (Maž
Slide 21: Key take aways: 9M 2023 results
Investor presentation / 9M 2023 results Key take aways: 9M 2023 results Strategy Sustainability Finance - Secured Capacity reached 2.9 GW Progress on sustainability Record high investments of - started construction of the largest onshore wind farm in the Baltics, and reflected in upgraded ISS (from
Slide 22: Q&A
Investor presentation / 9M 2023 results Q&A 22 /38
Slide 23: Supplementary information
Investor presentation / Supplementary information Supplementary information 23 /38
Slide 24: Balance sheet
Investor presentation / Supplementary information Balance sheet EURm 30 Sep 2023 31 Dec 2022 Δ% EURm 30 Sep 2023 31 Dec 2022 Δ% Assets Equity and liabilities Non-current assets Equity Intangible assets 202 148 36.3% Issued capital 1,616 1,616 - Property, plant and equipment 3,147 2,811 12.0% Reserve
Slide 25: Income statement
Investor presentation / Supplementary information Income statement EURm 9M 2023 9M 2022 Δ% Q3 2023 Q3 2022 Δ% Revenue from contracts with customers 1,837 3,024 (39.2%) 470 1,294 (63.7%) Other income 4 4 4.9% 2 1 (54.5%) Total revenue and other income 1,842 3,028 (39.2%) 471 1,295 (63.6%) Purchases o
Slide 26: Cash flow statement
Investor presentation / Supplementary information Cash flow statement EURm 9M 2023 9M 2022 Δ% EURm 9M 2023 9M 2022 Δ% Cash flows from operating activities Cash flows from financing activities Net profit for the period 213 185 15.0% Loans received 276 223 23.7% Adjustments for non-monetary expenses R
Slide 27: Reconciliations
Investor presentation / Supplementary information Reconciliations Reconciliation of Adjusted EBITDA EURm (2.9) EURm 348.2 345.3 (2.9) Reconciliation of Adjusted Net Profit EURm (19.6) EURm 212.6 3.5 9.6 193.0 (2.9) (20.2) Net profit Total EBITDA One-off financial Adjustments’ impact Adjusted Net Pro
Slide 28: EBITDA and Net profit adjustments
Investor presentation / Supplementary information EBITDA and Net profit adjustments EBITDA adjustments Net profit adjustments EURm EURm 9M 2023 9M 2022 ∆ ∆, % 9M 2023 9M 2022 ∆ ∆, % EBITDA APM 348.2 333.5 14.7 4.4% Net profit 212.6 184.9 27.7 15.0% Adjustments Adjustments Temporary regulatory differ
Slide 29: Financing
Investor presentation / Supplementary information Financing Debt maturity schedule EURm Liquidity reserve EURm 1,401.2 675.4 1,002.8 50.8 499.0 300.0 300.0 300.0 553.1 104.0 252.4 725.8 119.8 449.1 452.9 48.0 49.3 48.0 47.6 47.8 47.7 49.0 11.9 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032+ 31 De
Slide 30: Sustainable finance
Investor presentation / Supplementary information Sustainable finance Majority of our KPIs remain to be largely Taxonomy-aligned in 9M 2023 Taxonomy- Taxonomy-eligible aligned Adjusted EBITDA APM Taxonomy CAPEX APM 4.1 Electricity generation using solar photovoltaic technology % % 4.3 Electricity ge
Slide 31: Industry overview
Investor presentation / Supplementary information Industry overview Electricity Consumption, TWh Finland TWh 9M 2023 9M 2022 ∆, % 54.9 EUR/MWh (-61.8%) Nord Pool system 62.3 EUR/MWh (-29.8%) Lithuania 8.5 9.1 (6.6%) 56.0 EUR/MWh (-58.8%) Latvia 4.7 5.1 (7.8%) Estonia 5.8 6.0 (3.3%) TTF 50.3 EUR/MWh
Slide 32: Diversified Green Generation Portfolio
Investor presentation / Supplementary information Under Construction Capacity Capacity Expected Type of secured Proportion of Name Diversified Green Generation Portfolio (MWe) (MWth) COD revenue secured revenue1 Vilnius CHP’s – 73 169 Q4 2023 0% biomass unit 2023 Q4- Polish solar portfolio II ~40 –
Slide 33: Generation mix and potential synergies
Investor presentation / Supplementary information Generation mix and potential synergies Electricity generated1 vs. supplied (TWh) by Ignitis Group in 2022 >7x or 6.6 TWh difference between supply and generation Gap enough to cover ~3.0 GW2 of new Green Generation capacities 7.7 TWh 1.1 TWh 2022 Res
Slide 34: Hedging levels
Investor presentation / Supplementary information Hedging levels1 Generation Portfolio Hedge price4, 105 143 142 141 79 EUR/MWh 100% 0 90% -50 80% Volumes hedged2,3, 70% 78% -100 65% 60% 54% 50% -150 40% 51% -200 30% 25% 20% -250 % 10% 0% -300 2022 2023 2024 2025 2026 1. Hedging levels are provided
Slide 35: Networks regulated WACC
Investor presentation / Supplementary information Networks regulated WACC Electricity Natural gas Methodology Parameter 2023 2024 2023 2024 Former Updated 1. Set for a 5-year period. 1. Set annually. (1) Risk-free rate 1.42% 2.86% 2.32% 2.86% 2. Calculation: the average Lithuanian government bond yi
Slide 36: Strategic plan 2023-2026: disclosure summary
Investor presentation / Supplementary information Strategic plan 2023-2026: disclosure summary Strategic ambitions and financial guidance Our strategic performance KPIs Green generation installed capacity: Total CAPEX, 2023–2026 2.2–2.8 EURbn - 2026 2.2–2.4 GW - of which a sustainable share, 2023–20
Slide 37: Glossary
Investor presentation / Supplementary information Glossary Indicator Definition Indicator Definition Projects which have access to the electricity grid secured through preliminary grid connection agreement GHG Greenhouse Gas Advanced Development (agreement signed and grid connection fee has been pai
Slide 38: More about Ignitis Group
Investor presentation / Supplementary information More about Ignitis Group Reports & presentations IR contacts Sustainability IR team Strategy [email protected] 38 /38