FY 2018 results Enel Russia March 18, 2019 Agenda Financial - - PowerPoint PPT Presentation

FY 2018 results Enel Russia

March 18, 2019

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

Agenda

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✔ ✔

Financial targets delivery

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1 Herein after - audited financial results under IFRS

² Excluding FX differences and corresponding gain/loss from derivatives

Expected decline in financials due to challenging market situation after strong 2017

✔

2018¹ 2018 target 2017 Δ YoY 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%

Net ordinary income (RUB mn) 7,699 7,300 8,544

• 10%

Net debt (RUB mn) 19,376 20,300 17,889 +8% EBITDA/Net financial expenses² 8.8x 7.7x +1.0 Net debt/EBITDA 1.1x 1.0x +0.1 Net debt/Equity 0.43x 0.43x

Lower loading on conventional plants due to lower demand in Urals & overcapacity in the system

FY 2017 FY 2018 Net output (TWh) CCGT Coal Gas

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39.8 39.2 18.6 16.0 5.3 18.6 14.8 5.8 FY 2017 FY 2018 Power sales (TWh) Free Regulated 45.6 45.1 37.2 8.4 35.9 9.2 82% FY 2017 FY 2018 51% FY 2017 50% FY 2018 Plant availability¹ Utilization on net electric capacity 86%

• 2%
• 1%

1 Annualized

Fuel price growth coupled with flat prices compressed unit margin

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FY 2017 FY 2018 Unit cost of sales (RUB/MWh)² 903 914

¹ Including regulated power sales, day ahead market and balancing market sales ² Including fuel cost and energy purchases

FY 2017 FY 2018 Unit selling price (RUB/MWh)¹ 1,103 1,101 FY 2017 FY 2018 Unit margin on sales (RUB/MWh) 200 187

• 0.2%

+1%

• 6%

Fixed costs optimisation partially offset lower revenues

FY 2017 FY 2018 Revenues (RUB bn) Heat and other Capacity Power

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74.4 73.3 20.1 50.2 4.1 19.6 49.6 4.1 FY 2017 FY 2018 Variable costs (RUB bn) Purchased power Fuel 44.0 44.1 5.5 38.5 5.5 38.6 FY 2017 FY 2018 Fixed costs (RUB bn)¹ Overhead Personnel O&M not manageable O&M manageable 12.5 11.8 4.3 3.4 3.8 3.2 3.5 3.6 1.3 1.2

• 2%

+0.1%

• 6%

¹ The company retrospectively changed the classification of certain operating expenses capitalisation effect to conform to the current year (2018) presentation

Lower personnel costs due to pension plan amendment in 2018

Fixed costs savings improved EBITDA dynamics amid lower margin

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FY 2017 FY 2018 17,732 (1,215) 699 9 17,225 Generation margin Fixed costs Other items

• 3%

EBITDA evolution (RUB mn)

Net income down on EBITDA and bad debts partially

• ffset by lower financial charges

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Financial charges decreased on debt cost and currency structure optimisation

2018 2017 Δ YoY EBITDA (all - RUB mn) 17,225 17,732

• 3%

DD&A¹ and impairment (4,689) (3,762) +25% EBIT 12,536 13,970

• 10%

Net financial charges (2,668) (3,037)

• 12%

EBT 9,868 10,933

• 10%

Income tax (2,169) (2,388)

• 9%

Net ordinary income 7,699 8,544

• 10%

¹ Depreciation, depletion and amortization

Debt growth due to assets development capex…

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31Dec17 31Dec18 17,889 19,376 (13,076) +6,409 +1,505 +912 Cash flow from

• perations¹

1 Post working capital changes

Capex Net financial charges FX Net debt (RUB mn) 31Dec17 31Dec18 Hedged debt on Total debt

Unhedged Hedged

100% 100% AVG Cost Weight 31/12/17 AVG Cost Weight 31/12/18 RUB 10.9% 71% 9.3% 77% EUR 1.7% 29% 1.7% 23% Total debt profile 2017 2018 +1,487 +611 Income tax Dividends +5,126

…backed by sufficient liquidity

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31Dec17 31Dec18 Utilized amount 22% 26% 31Dec17 31Dec18 Total credit facilities: utilized & available (RUB bn)¹ Long-term Short-term 106.9 105.3 88% 91% 9% 12%

1 Not adjusted for FX differences on EUR-nominated facility

• 1.5%

FY2018 results

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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)