Ignitis Grupe

Earnings Release • Nov 30, 2021

National Storage Mechanism | Additional information

Preliminary financial data of Ignitis Group for 10 months of 2021

Preliminary financial data of Ignitis Group (hereinafter – the Group) for 10 months of 2021:

	October
	2021	2020	Change
Revenue	EUR 181.9 million	EUR 93.4 million	94.8%
Adjusted EBITDA1,2	EUR 40.2 million	EUR 21.7 million	85.3%
	January – October
	2021	2020	Change
Revenue	EUR 1,347.3 million	EUR 962.2 million	40.0%
Adjusted EBITDA1,2	EUR 254.7 million	EUR 185.6 million	37.2%

In January – October 2021, the Group generated revenue of EUR 1,347.3 million, which is 40.0% more compared to a respective period of 2020 (EUR 962.2 million). The growth was driven by:

• higher B2B electricity sales in the Customers & Solutions business segment as a result of increase in electricity market prices and higher consumption compared to the same period in 2020;
• increase of distributed volumes in the Networks segment due to higher energy consumption;
• CCGT unit’s commercial activities (Flexible Generation) due to higher captured electricity market prices;
• the start of operations of Kaunas and Vilnius CHP’s WtE unit in August 2020 and March 2021 (Green Generation), respectively.

The Adjusted EBITDA in January – October 2021 was equal to EUR 254.7 million, i.e. 37.2% more compared to a respective period of 2020 (EUR 185.6 million). Adjusted EBITDA grew as a result of:

• better Green Generation segment result due to start of operations of Kaunas CHP and Vilnius CHP’s WtE unit as well as improved result of Kaunas HPP mostly due to higher electricity market price and Kruonis PSHP due to effective utilization of spread between peak and off-peak market prices;
• Customers & Solutions growth due to temporary positive effect on natural gas performance as a result of natural gas inventory revaluation, due to increasing prices (EUR 44.8 million in January – October 2021), which is expected to reverse in 2022 if natural gas prices normalize;
• increase in Networks segment result mostly due to higher distributed volumes as a result of overall higher energy consumption compared to respective period of 2020. Higher volumes effect amounted to EUR 13.1 million in January – October 2021, this effect will level off over the course of the year as annual ROI and compensated D&A is fixed for the year, but allocated between the months based on distributed volumes.

1 The Group’s preliminary (2021) and actual (2020) result of adjusted EBITDA is presented after the adjustments made by the management by eliminating the impact of one-off factors. These adjustments are intended to disclose the results of the Group’s operating activity without taking into consideration atypical, one-off factors or factors that have no direct relation with the current period of operations. All adjustments made by the management are disclosed in the Group’s interim and annual reports which are available at Group’s website (link).

2 Due to Networks Methodology update, Adjusted EBITDA was recalculated retrospectively for the year 2020 (for more information, see ‘Results by business segment’ section ‘Networks Methodology update’ in our 9M Interim report (link)). Negative impact of the Networks Methodology update on Adjusted EBITDA for the period of Jan-Oct 2021 amounts to EUR 39.0 million and for the respective period of 2020 – EUR 39.3 million.

For more information please contact:

Artūras Ketlerius

Head of Public Relations at Ignitis Group

arturas.ketlerius@ignitis.lt

+370 620 76076