Rusgidro · RUS:HYDR
Rusgidro — RusHydro — Q1 2015 Earnings Presentation
20 slides from Rusgidro's earnings presentation, Jun 30, 2015
Slide 1: RusHydro Group 1Q 2015 IFRS results & market update
RusHydro Group 1Q 2015 IFRS results & market update June 30, 2015 Moscow, Russia
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 events and developments in 1Q'15 and beyond
Key events and developments in 1Q’15 and beyond January-March 2015 The BoD approved the appointment of Sergey Kirov, Deputy General Director for business-planning, investments and procurements, to the Management Board, increasing the number of Management Board members from 5 to 6 effective March 16,
Slide 4: 1Q'15 operating results
1Q’15 operating results Key highlights Low hydro production across all major regions coupled with high base effect of 1Q’14 when production was still strong after ample water inflows in 2013; lower than average water resources in reservoirs of the hydropower plants of the Volga-Kama cascade; d
Slide 5: Hydro production trends 2011-2015 – recovery is on the way
Hydro production trends 2011-2015 – recovery is on the way Center of Russia, GWh Siberia, GWh 2011 2011 2012 4,000 1Q 2012 3,000 1Q 2013 2013 2014 2014 2015 3,500 2015 2,500 Long-run average Long-run average 3,000 2,000 2,500 1,500 2,000 1,500 1,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ja
Slide 6: Spot market overview
Spot market overview Average selling spot power prices in European Russia in 1Q’15 – RUB 1,255/MWh (+5.5%); in Siberia in 1Q’15 – RUB 970/MWh (+36.8%); Non-indexation of gas tariffs as of 2H’14 put downward pressure on spot prices in the 1 st price zone; Removal of Siberia balance cross-flow r
Slide 7: Financial results overview
Financial results overview Key highlights 1Q’15 EBITDA – RUB 19,113 mn (-25.0%); 1Q’15 underlying (adjusted) net profit** – RUB 12,552 mn (-21.0%); Weighted-average EPS in 1Q 2015 remained almost flat at RUB 0.0323 per share vs 0.0326 last year; Decrease in year-on-year electricity output was
Slide 8: 1Q'15 EBITDA: segment and cost analysis
1Q’15 EBITDA: segment and cost analysis EBITDA bridge – segment review -2,590 +538 -3,368 -479 -479 25,491 19,113 EBITDA 1Q'14 JSC RusHydro ESC RusHydro subgroup RAO ES of East subgroup Other Misc undistributed EBITDA 1Q'15 (electricity retail) operations EBITDA bridge – cost analysis +2,952 +465 -2
Slide 9: OPEX overview
OPEX overview Key highlights Fuel costs: a) increase in electricity production of fossil fuel power generation in the Far East due to low hydro output; b) increase in USD-linked gas prices sourced from Sakhalin-1 consortium following RUB devaluation; c) higher load of a number of inefficient fossi
Slide 10: Segment review (1/3) – Hydropower: hit by low water and tariff freeze
Segment review* (1/3) – Hydropower: hit by low water and “tariff freeze” 1Q’15 results (IFRS), RUB mn Key highlights 1Q’15 1Q’14 chg FY’14 FY’13 chg Average selling spot power prices in European Russia in 1Q’15 – RUB 1,255/MWh (+5.5%); in Siberia in 1Q’15 – RUB Revenue 22,498 23,377 -3.8% 98,581 9
Slide 11: Segment review (2/3) – RAO ES of East
Segment review* (2/3) – RAO ES of East: supported by low hydro and T&D business 1Q’15 results (IFRS), RUB mn Key highlights 1Q’15 1Q’14 chg FY’14 FY’13 chg The electricity generation by the plants of RAO ES of East in 1Q Revenue 48,373 44,968 7.6% 162,699 152,829 6.5% 2015 – 9,921 GWh (+18.5%) due
Slide 12: Segment review (3/3) – Retail: slow recovery
Segment review* (3/3) – Retail: slow recovery 1Q’15 results (IFRS), RUB mn Key highlights Gradual recovery in profitability on the back of higher retail tariffs; 1Q’15 1Q’14 chg FY’14 FY’13 chg Total electricity output in 1Q’15 – 10,564 GWh (-2.8% year-on- Revenue 24,934 22,918 8.8% 82,230 79,16
Slide 13: Cash flow analysis
Cash flow analysis RUB billion 30 1Q’13 2Q’13 3Q’13 4Q’13 1Q’14 2Q’14 3Q’14 4Q’14 1Q’15 25 24.3 25.8 20 18.2 13.7 13.9 14.1 15 -0.1 9.3 9.6 10 8.6 -8.8 6.3 5 3.7 0.3 0.9 2.1 -10.6 0 0.2 -23.0 -1.8 -14.9 -1.1 1.4 -15.8 -5 -3.5 -3.5 -30.7 -0.8 -0.3 -0.04 -10 -14.9 -17.6 -9.3 -9.3 -19.7 -10.2 -15 Opera
Slide 14: RusHydro Group debt profile
RusHydro Group debt profile Key highlights Comfortable debt repayment profile (1) (RUB bn) A low interest and FX risk debt portfolio with over 90% of the facilities Total repayments = RUB 186 bn as of 31.05.2015 being RUB-denominated and ca. 83% bearing fixed interest rate Strong relationship wi
Slide 15: Outlook for 2H 2015
Outlook for 2H 2015 Construction Gotsatlinskaya hydropower plant (100 MW) – launch in summer 2015, new capacity tariff – RUB 1.774 mn/MW/month Zelenchukskaya hydropower plant (140 MW) – launch in 2H’15, new capacity tariff – RUB 2.035 mn/MW/month Boguchansky aluminium smelter (147,000 tonnes p.a.) –
Slide 16: Financial outlook
Financial outlook Factors/opportunities for growth in 2015 ↑ Recovery in hydro production following good water inflows in May-June ↑ Increase in prices on the “day-ahead” market in the 1st pricing zone following indexation of gas prices for industrial consumers from June 1, 2015; ↑ Launch of the Zel
Slide 17: Distribution of profit and dividend payment
Distribution of profit and dividend payment Key aspects Dividend payments In March 2014, BoD approved changes to RusHydro’s dividend policy aimed at dividend payout from consolidated net profit of the Company calculated 6.0 under IFRS; CAGR - 25% 5.2 Minimal amount of dividend payment set by the
Slide 18: Efficiency improvement and financial strengthening action plan
Efficiency improvement and financial strengthening action plan Decrease in technical upgrade and reconstruction outlays; JSC RusHydro Flattering of capex outlays in terms of construction of new projects and completion of construction; Reduction of non-operating personnel in JSC RusHydro and al
Slide 19: 2H 2015 disclosure & IR calendar
2H 2015 disclosure & IR calendar July 7 Dividend record date June 30 1Q 2015 IFRS results & conference-call July 23 2Q 2015 operating results July 30 1H 2015 RAS results August 28 1H 2015 IFRS results & conference-call September (TBC) Sberbank CIB Russia & CIS Conference (London) September 10 HSBC C
Slide 20: IR contacts
Thomson Reuters Extel 2014: No.1 IR Team in Russian Utilities Best IRO, Russian Utilities 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