Mocna pozycja rynkowa Grupy ENEA po 1Q 2018 Stabilne wyniki GK ENEA w 1H 2018 pomimo dużej zmienności na rynku energii 24 maja 2018 r. 13 września 2018 r. 1. Operating summary 1. OPERATING SUMMARY 1.1 ENEA Group in numbers • 6.2 GW of electrical power installed • 391 million tonnes – extraction potential of 3 licenced areas • 122.4 thousand km of distribution lines including connections • 16.1 thousand Employees • 2.6 million Customers Resources • PLN 9,384 million of net sales revenue • PLN 1,973 million of EBITDA • PLN 620 million of net profit • PLN 1,455 million of CAPEX Q1-Q3 2018 financials • 75% own coal consumption • 5.8-6.3 GW of conventional electrical power installed • 20.1 TWh of electricity sale • EBITDA of PLN 2,939 million (an increase of 38% on 2015) Targets until 2025 3 In Q1-Q3 2018, ENEA Group generated a higher EBITDA result than in the corresponding period of the previous year. The highest EBITDA, amounting to PLN 872 million, was posted in the Distribution area, mainly on the back of the growth in sale of distribution services and of the improved result on other operating activities. The second highest EBITDA result • In Q1-Q3 2018, ENEA Group’s CAPEX totalled PLN 1,454.8 million. was recorded in the Generation area, totalling PLN 663 million, with a growth of 8.8% y/y. The increase in the volume of electricity generated did not counterbalance the negative • The production and sales of commercial coal stood at the level of 6.8 million impact of the increase in variable costs in this area. The volume of electricity generation tonnes. was affected by two counterbalancing factors – on the one hand, these were the acquisition of Połaniec Power Plant at the end of Q1 2017 and the commissioning of Unit • ENEA Group generated 19.9 TWh of electricity, up by 31% on the No. 11 at Kozienice Power Plant, while, on the other hand, there were the protracted corresponding period of the previous year, of which 18.5 TWh came from shutdowns of Units Nos. 9 and 10 at Kozienice Power Plant, also related to the adjustment conventional sources. There was also an increase of 7.9% y/y in RES of generation units to the BAT conclusions. The EBITDA result recorded by the Trading area generation. reached PLN 38 million, down by 71% y/y. This was the effect of an increase in the costs of environmental obligations (mainly, the so-called green obligation) and in the prices of • The sales of heat increased and totalled 4,703 TJ, up by 8.7% y/y. electricity in the retail trade, as well as an increase in the prices of CO2 emission allowances in the wholesale trade. The EBITDA result in the Mining area, following a decrease of PLN • Sales of distribution services to end users totalled 14.9 TWh, which means a 51 million y/y, amounted to PLN 400 million and remains under the pressure of temporary growth of 4.3% on the corresponding period of the previous year. geological and hydro-technological difficulties experienced in Q1 2018. • Sales of electricity and gas fuel to retail customers totalled 15.9 TWh, i.e. + - increased by 13% y/y. • Growth in revenues from electricity sales • Drop in revenues from sales of natural gas • Growth in revenues from sales of CO₂ • Drop in revenues from sales of coal emission allowances • Growth in costs of purchase of electricity • Growth in the volume of heat sales and gas • Growth of the result on other operating • Growth in costs of consumption of activities materials and raw materials 4 1.2. Selected consolidated financialdata [PLNk] Q1-Q32017 Q1-Q32018 Change %change [PLN k] Q32017 Q32018 Change %change 1) 1) Net sales revenue 8,362,198 9,384,198 1,022,000 12.2% Net sales revenue 2,793,974 3,344,643 550,669 19.7% Operating profit / (loss) 1,069,855 920,248 -149,607 -14.0% Operating profit / (loss) 288,234 287,365 -869 -0.3% Profit / (loss) before tax 1,036,030 763,780 -272,250 -26.3% Profit / (loss) before tax 267,375 205,524 -61,851 -23.1% Net profit / (loss) for the Net profit / (loss) for the 837,949 620,289 -217,660 -26.0% 214,118 158,259 -55,859 -26.1% reporting period reporting period EBITDA 1,947,255 1,973,339 26,084 1.3% EBITDA 588,820 669,275 80,455 13.7% Net profit attributable to Net cash flows from: shareholders of the 204,370 152,927 -51,443 -25.2% operating activities 2,234,993 2,834,248 599,255 26.8% Parent investing activities -2,828,149 -1,754,164 1,073,985 38.0% Weightedaverage 441,442,578 441,442,578 - - financial activities -67,845 -454,223 -386,378 - number of shares Balance of cash 1,679,216 3,312,987 1,633,771 97.3% Net profit per share [PLN] 0.46 0.35 -0.11 -23.9% Net profit attributable to 785,532 584,117 -201,415 -25.6% shareholders of the Parent Diluted profit per share 0.46 0.35 -0.11 -23.9% Weighted average number of [PLN] 441,442,578 441,442,578 - - shares Net profit per share [PLN] 1.78 1.32 -0.46 -25.8% Diluted profit per share [PLN] 1.78 1.32 -0.46 -25.8% [PLN k] 31Dec 2017 30 Sep2018 Change %change 1,947,255 1,973,339 Total assets 28,312,994 29,596,840 1,283,846 4.5% Total liabilities 14,313,325 14,639,193 325,868 2.3% Non-current liabilities 10,063,012 10,149,518 86,506 0.9% 837,949 Current liabilities 4,250,313 4,489,675 239,362 5.6% 620,289 Equity 13,999,669 14,957,647 957,978 6.8% Share capital 588,018 588,018 - - Book value per share [PLN] 31.71 33.88 2.17 6.8% EBITDA Net result Diluted book value per share 31.71 33.88 2.17 6.8% [PLN] Q1-Q3 2017 Q1-Q3 2018 1) Presentation change in the scope of valuation and own sales cost of property rights 5 1.3. Key operating data and ratios 1) Unit Q1-Q3 2017 Q1-Q3 2018 Change % change 2) Net sales revenue PLNk 8,362,198 9,384,198 1,022,000 12.2% • an EBITDA increase of 1.3% (by PLN 26 EBITDA PLNk 1,947,255 1,973,339 26,084 1.3% million) EBIT PLNk 1,069,855 920,248 -149,607 -14.0% Net profit PLNk 837,949 620,289 -217,660 -26.0% • a decrease in CAPEX, mainly in the Net profit attributable to shareholders of the Parent PLNk 785,532 584,117 -201,415 -25.6% Generation Area, i. a. due to a large equity Net cash flows from operating activities PLNk 2,234,993 2,834,248 599,255 26.8% investment in Q1 2017 (acquisition of ENEA CAPEX PLNk 3,122,871 1,454,803 -1,668,068 -53.4% Elektrownia Połaniec) and the investment Net debt / EBITDA 1) - 2.1 1.7 -0.4 -19.0% project implemented and completed in Return on assets (ROA) 1) % 4.3% 2.8% -1.5 pp - 2017 (Unit No. 11) Return on equity (ROE) 1) % 8.2% 5.5% -2.7 pp - • an increase of 13% in sales of electricity Trading and gaseous fuel to retail customers (by Sales of electricity and gas fuel to retail customers GWh 14,039 15,862 1,823 13.0% 1,823 GWh) Number of customers (Power Delivery Points) ’000 2,412 2,471 59 2.5% • an increase in the total volume of Distribution electricity generated by 4.8 TWh Sale of distribution services to end users GWh 14,322 14,935 613 4.3% Number of customers (closing balance) ’000 2,541 2,579 38 1.5% Generation Total generation of electricity, including: GWh 15,178 19,940 4,762 31.4% from conventional sources GWh 13,834 18,490 4,656 33.7% from renewable energy sources GWh 1,344 1,450 106 7.9% Gross heat generation TJ 4,790 5,226 436 9.1% Sale of electricity, including: 3) GWh 17,676 26,962 9,286 52.5% from conventional sources GWh 14,105 18,602 4,497 31.9% from renewable energy sources GWh 1,073 1,339 266 24.8% from purchase GWh 2,498 7,022 4,524 181.1% Sales of heat TJ 4,326 4,703 377 8.7% Mining Net production ’000 tonnes 6,712 6,820 106 1.6% Coal sales ’000 tonnes 6,698 6,788 100 1.3% Closing stocks ’000 tonnes 140 57 -83 -59.3% Excavation works km 22.5 28.6 6.1 27.1% 1) Ratio definitions are presented on Page 108. 2) Presentation change in the scope of valuation and own sales cost of property rights 3) Presentation change 6 Unit Q32017 Q32018 Change % change 2) Net sales revenue PLNk 2,793,974 3,344,643 550,669 19.7% EBITDA PLNk 588,820 669,275 80,455 13.7% • an EBITDA increase of 13.7% (by PLN 80 EBIT PLNk 288,234 287,365 -869 -0.3% million) Net profit PLNk 214,118 158,259 -55,859 -26.1% • a decrease in CAPEX, mainly in the Net profit attributable to shareholders of the Parent PLNk 204,370 152,927 -51,443 -25.2% Generation Area, i.