FY 2018 results Enel Russia March 18, 2019
Agenda Financial highlights 3 Operational highlights 4 Unit margin on sales 5 Revenues and costs 6 EBITDA evolution 7 From EBITDA to net income 8 Cash flow and debt 9 Focus on liquidity 10 2
Financial targets delivery 2018¹ Δ YoY 2018 target 2017 Revenue (RUB mn) 73,265 74,400 -2% ✔ EBITDA (RUB mn) 17,225 16,500 17,732 -3% - EBITDA margin 23.5% 23.8% -0.3% ✔ 7,699 7,300 8,544 -10% Net ordinary income (RUB mn) ✔ Net debt (RUB mn) 19,376 20,300 17,889 +8% EBITDA/Net financial expenses ² 8.8x 7.7x +1.0 Net debt/EBITDA 1.1x 1.0x +0.1 Net debt/Equity 0.43x 0.43x - Expected decline in financials due to challenging market situation after strong 2017 3 1 Herein after - audited financial results under IFRS ² Excluding FX differences and corresponding gain/loss from derivatives
Lower loading on conventional plants due to lower demand in Urals & overcapacity in the system Net output (TWh) Power sales (TWh) -1% -2% 45.6 45.1 39.8 39.2 5.3 5.8 CCGT Free 18.6 Coal 37.2 35.9 18.6 Regulated Gas 16.0 14.8 9.2 8.4 FY 2017 FY 2018 FY 2017 FY 2018 Plant availability¹ Utilization on net electric capacity 86% 51% 50% 82% FY 2018 FY 2017 FY 2018 FY 2017 4 1 Annualized
Fuel price growth coupled with flat prices compressed unit margin Unit selling price (RUB/MWh) ¹ -0.2% 1,103 1,101 Unit margin on sales (RUB/MWh) -6% 200 187 FY 2017 FY 2018 Unit cost of sales (RUB/MWh) ² +1% FY 2017 FY 2018 903 914 FY 2017 FY 2018 5 ¹ Including regulated power sales, day ahead market and balancing market sales ² Including fuel cost and energy purchases
Fixed costs optimisation partially offset lower revenues Variable costs (RUB bn) +0.1% Revenues (RUB bn) 44.0 44.1 5.5 5.5 -2% Purchased power 74.4 73.3 4.1 4.1 38.6 Fuel 38.5 20.1 19.6 Heat and other FY 2017 FY 2018 Capacity Power Fixed costs (RUB bn) ¹ 50.2 49.6 -6% 12.5 11.8 1.3 1.2 Overhead 4.3 3.8 FY 2017 FY 2018 Personnel O&M not 3.5 3.6 manageable O&M manageable 3.4 3.2 Lower personnel costs due to pension plan amendment in 2018 FY 2017 FY 2018 6 ¹ T he company retrospectively changed the classification of certain operating expenses capitalisation effect to conform to the current year (2018) presentation
Fixed costs savings improved EBITDA dynamics amid lower margin EBITDA evolution (RUB mn) -3% 17,732 (1,215) 699 9 17,225 Fixed costs Other items Generation margin FY 2017 FY 2018 7
Net income down on EBITDA and bad debts partially offset by lower financial charges Δ YoY 2018 2017 EBITDA (all - RUB mn) 17,225 17,732 -3% DD&A ¹ and impairment (4,689) (3,762) +25% EBIT -10% 12,536 13,970 Net financial charges (2,668) (3,037) -12% EBT -10% 9,868 10,933 Income tax (2,169) (2,388) -9% Net ordinary income 7,699 8,544 -10% Financial charges decreased on debt cost and currency structure optimisation 8 ¹ Depreciation, depletion and amortization
Debt growth due to assets development capex… Hedged debt on Total debt Net debt (RUB mn) +1,487 Unhedged 100% 100% 19,376 +912 Hedged +1,505 17,889 (13,076) +6,409 31Dec17 31Dec18 +5,126 Total debt profile 2017 2018 +611 AVG Weight AVG Weight Cost 31/12/17 Cost 31/12/18 Cash flow from Income tax Dividends Capex Net financial FX operations ¹ charges RUB 10.9% 71% 9.3% 77% EUR 1.7% 29% 1.7% 23% 31Dec17 31Dec18 9 1 Post working capital changes
…backed by sufficient liquidity Total credit facilities: utilized & available (RUB bn) ¹ Utilized amount -1.5% 106.9 105.3 22% 26% Long-term 88% 91% Short-term 31Dec17 31Dec18 12% 9% 31Dec17 31Dec18 10 1 Not adjusted for FX differences on EUR-nominated facility
FY2018 results Contact us Ekaterina Orlova Investor Relations Phone +7 495 539 31 31 ext. 7746 Email ekaterina.orlova@enel.com Web site www.enel.ru (Investor Relations) 11
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