Rusgidro · RUS:HYDR
Rusgidro — RusHydro — FY2014 Earnings Presentation
16 slides from Rusgidro's earnings presentation, Mar 25, 2015
Slide 1: 4Q and FY 2014 IFRS results & market update
RusHydro Group 4Q and FY 2014 IFRS results & market update March 25, 2014
Slide 2: Disclaimer
Disclaimer This document does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any securities of the Company in any jurisdiction, nor shall it or any part of it nor the fact of its
Slide 3: Key points of 2014
Key points of 2014 January-September 2014 Securing facilities in total amount of EUR 190 mn from ING Bank and Crédit Agricole Corporate & Investment Bank Deutschland for modernization of Saratovskaya HPP RusHydro approved a new dividend policy providing a payout taking into consideration consolidate
Slide 4: 4Q'14 and FY'14 operating results
4Q’14 and FY’14 operating results lower than FY2013 and long-run average water inflow to reservoirs of the Volga-Kama cascade; water inflow to Sayano-Shushenskoe reservoir – lower than normal; increase in electricity generation by TPPs of the Far East due to decreased hydro production in the u
Slide 5: Hydro production trends 2011-2014
Hydro production trends 2011-2014 Center of Russia, GWh Siberia, GWh 5,500 2011 2011 2012 3,000 5,000 2013 2012 2014 2013 4,500 2014 Long-run average 2,500 4,000 Long-run average 3,500 2,000 3,000 1,500 2,500 2,000 1,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Slide 6: Spot market overview
Spot market overview Average selling spot power prices in European Russia in FY’14 – RUB 1,227/MWh (+9.1%), in 4Q’14 – RUB 1,241/MWh (+4.8%); in Siberia in FY’14 – RUB 777/MWh (+18.1%), in 4Q’14 – RUB 977/MWh (+48.9%); Non-indexation of gas tariffs as of 2H’14 put downward pressure on spot price
Slide 7: Financial results overview
Financial results overview Key highlights Decrease in year-on-year electricity output was partly offset by: a) higher unregulated prices in Siberia, almost flat price in the European part of Russia; b) resumption of “last mile” arrangement in the Far East; c) partial liberalization of capacity sal
Slide 8: FY14 EBITDA: segment and cost analysis
FY14 EBITDA: segment and cost analysis EBITDA bridge – segment review -5,770 +903 -1,634 +1,257 -678 79,171 73,249 EBITDA 2013 JSC RusHydro ESC RusHydro subgroup RAO ES of East subgroup Other Misc undistributed EBITDA 2014 (electricity retail) operations EBITDA bridge – cost analysis +15,110 -2,882
Slide 9: 4Q'14 EBITDA: segment and cost analysis
4Q’14 EBITDA: segment and cost analysis EBITDA bridge – segment review -3,700 -22 -2,133 +1,359 -356 26,594 21,742 EBITDA 4Q'13 JSC RusHydro ESC RusHydro subgroup RAO ES of East subgroup Other Misc undistributed EBITDA 4Q'14 (electricity retail) operations EBITDA bridge – cost analysis +6,638 -4,086
Slide 10: OPEX overview
OPEX overview Key highlights Employee benefit expenses: indexation of salaries of personnel of JSC RusHydro branches as well as annual indexation of salaries of personnel of subsidiaries and associates of RusHydro Group; one-off bonus payment to the Company’s employees for execution of a three-yea
Slide 11: Segment review (1/3) – Hydropower: hit by low water and tariff freeze
Segment review* (1/3) – Hydropower: hit by low water and “tariff freeze” FY’14 and 4Q’14 results (IFRS), RUB mn Key highlights 4Q’14 4Q’13 chg FY’14 FY’13 chg Average selling spot power prices in European Revenue 23,433 25,303 -7.4% 98,581 99,138 -0.6% Russia in FY’14 – RUB 1,227/MWh (+9.1%), in 4
Slide 12: Segment review (2/3) – RAO ES of East: supported by low hydro and T&D
Segment review* (2/3) – RAO ES of East: supported by low hydro and T&D business FY’14 and 4Q’14 results (IFRS), RUB mn Key highlights 4Q’14 4Q’13 chg FY’14 FY’13 chg The electricity generation by the plants of RAO ES of East Revenue 52,925 48,908 8.2% 162,699 152,829 6.5% in 4Q 2014 – 10,079 GWh (
Slide 13: Segment review (3/3) – Retail: slow recovery
Segment review* (3/3) – Retail: slow recovery FY’14 and 4Q’14 results (IFRS), RUB mn Key highlights Gradual recovery in profitability on the back of higher 4Q’14 4Q’13 chg FY’14 FY’13 chg retail tariffs; Revenue 24,113 22,209 8.6% 82,230 79,168 3.9% Total electricity output in 1Q’14 – 10,632 GWh
Slide 14: Debt profile update: low interest and FX risk
Debt profile update (Feb’14): low interest and FX risk(1) Key highlights Transparent debt composition Other (financial lease, debt of A low interest and FX risk debt portfolio with over 85% of the BoGES guarantee retail co, derivatives) 4.8 facilities as of 28.02.2015 being RUB-denominated and alm
Slide 15: Outlook for 2015
Outlook for 2015 Management will provide a more detailed outlook for the company and the sector at the analyst and investor day in April 2015 Construction Revision of 2015 capex plan as compared to earlier funding plan in 1Q’15 based on external funding availability, observance of covenants and prio
Slide 16: Contact Information
Thomson Reuters Extel 2013: No.1 IR Team in Russian Utilities Best CFO, mid-cap (Russia), #1 Best IRO. mid-cap (Russia), #2 Best overall IR, mid-cap (Russia), #3 Thomson Reuters Extel 2012: No.1 IR Team in Russian Utilities Thomson Reuters Extel 2011: No.1 IR Team in Russian Utilities Contac