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ERG Investor Presentation 2024
4235_ip_2024-08-02_f2d7e1f2-ea15-4959-8035-d40337e76003.pdf
Investor Presentation
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2Q AND 1H 2024 RESULTS
Paolo Merli - CEO
DISCLAIMER
This document contains certain forward-looking information that is subject to a number of factors that may influence the accuracy of the statements and the projections upon which the statements are based. There can be non assurance that the projections or forecasts will ultimately prove to be accurate; accordingly, the Company makes no representation or warranty as to the accuracy of such information or the likelihood that the Company will perform as projected.
AGENDA
❑ 2Q 2024 Highlights
- Key Figures
- Recent Developments
❑ Results Review
- Business Environment
- 1H 2024 Production & EBITDA
- Investments
❑ Key Financials
- Profit & Loss
- Cash Flow Statement
- ❑ 2024 Guidance and Conclusions
HIGHLIGHTS: KEY FIGURES(1)
NFP(4) (€ mn)
Net Profit(3) (€ mn) 114 28 36 106 1H 2023 1H 2024 2Q 2023 2Q 2024 CAPEX (€ mn)
(1) Adjusted figures on continuing operations (excluding CCGT for 1H 2023) (2) It refers to figures net of clawback measures (including IFRS 16 effect)
(3) Net Profit post-Minorities, and net of clawback measures and windfall taxes
(4) It does not include IFRS 16 liability, respectively for €172mn as at 31.12.23, and €213mn as at 30.6.24
RECENT ACHIEVEMENTS
EXECUTION WELL ON TRACK
A secured and international mix of organic projects and M&A
(1) Mineo-Militello-Vizzini (50.9MW on a differential basis; gross capacity post-repowering = 101MW) entered into operation on April 24, 2024 after completion of repowering activities
(2) Closing on April 24, 2024
(3) Limousin 1 (Saint Maurice La Clouère, 9MW) wind farm, entered into operation on July 24, 2024
(4) Of which, Wind: Salemi-Castelvetrano + Bourgogne 1 (Moulins du Bois) + Reinsdorf (50.4MW + 32MW + 3MW on a differential basis; gross capacity post-repowering = 76MW + 32MW + 6MW), and Solar: Siena (gross capacity post-repowering = 29MW)
BUILDING UP A LARGER AND WELL DIVERSIFIED PORTFOLIO IN EUROPE
Adding visibility to our growth prospects in IT, FR, UK and DE. First move in Storage
RESULTS REVIEW
Michele Pedemonte - CFO
BUSINESS ENVIRONMENT
(1) Prices net of clawback measures
(2) UK prices net of balancing revenues
A SNAPSHOT OF 1H AND 2Q 2024 RESULTS: PRODUCTION
| 1H 2024 1H 2023 Δ Energy Production (GWh): 2Q 2024 2Q 2023 Δ |
|---|
| 1,349 168 Italy 641 565 7 7 13% |
| 650 2 France 262 254 7 3,670 |
| GWh 306 9 Germany 113 103 1 0 |
| 376 (4) East Europe 140 146 (7) 87% |
| 218 8 5 UK & Nordics 137 8 5 5 1 |
| 9 1 157 Spain 167 5 6 111 |
| 2Q 2024 0 263 U S 263 0 263 |
| 2,989 681 Total Energy Production 1,723 1,209 513 19% 574 of which, Contribution of new assets: 469 469 • Wind 355 302 302 |
| 1,723 • 219 Solar 167 167 GWh 81% |
A SNAPSHOT OF 1H AND 2Q 2024 RESULTS: EBITDA
| 1H 2024 | 1H 2023 | Δ | Adjusted EBITDA (€ mn): | 2Q 2024 | 2Q 2023 | Δ |
|---|---|---|---|---|---|---|
| 181 | 151 | 3 0 |
Italy | 8 1 |
6 8 |
1 2 |
| 3 0 |
4 2 |
(12) | France | 8 | 1 5 |
(7) |
| 2 0 |
3 7 |
(17) | Germany | 7 | 9 | (2) |
| 2 6 |
3 0 |
(4) | East Europe | 8 | 1 2 |
(3) |
| 1 6 |
1 1 |
5 | UK & Nordics | 2 | 4 | (2) |
| 6 | 1 0 |
(4) | Spain | 4 | 5 | (2) |
| 1 2 |
0 | 1 2 |
U S |
1 2 |
0 | 1 2 |
| (10) | (11) | 0 | Corporate | (5) | (6) | 0 |
| 281 | 271 | 1 0 |
(1) Total Adjusted EBITDA |
116 | 107 | 9 |
| 28 | 28 | of which, Perimeter effect: | 22 | 22 | ||
| 23 | 23 | • Wind | 18 | 18 | ||
| 4 | 4 | • Solar | 4 | 4 |
INVESTMENTS
- (1) M&A CAPEX related to the closing in Spain of two Solar acquisitions: Garnacha (on June 23, 2023, for about €152mn), and Fregenal (on June 30, 2023 for an amount of €30mn)
- (2) M&A CAPEX related to the closing of two acquisitions in France for a total of €84mn (€48mn Wind + €36mn Solar, closing on January 29, 2024) and in US (€182mn Wind + €53mn Solar, closing on April 24, 2024)
- (3) M&A CAPEX related to the closing of two acquisitions in US (€182mn Wind + €53mn Solar, closing on April 24, 2024)
KEY FINANCIALS
ADJUSTED P&L
| 1H 2024 | 1H 2023 | Euro millions | 2Q 2024 | 2Q 2023 |
|---|---|---|---|---|
| 281 | 271 | Adjusted EBITDA | 116 | 107 |
| (127) | (113) | Amortization and depreciation |
(68) | (55) |
| 154 | 158 | Adjusted EBIT | 48 | 52 |
| (9) | (8) | (1) Net financial income (expenses) |
(7) | (3) |
| 144 | 149 | Adjusted Results before taxes | 41 | 49 |
| (38) | (34) | Income taxes |
(12) | (12) |
| 107 | 115 | Adjusted Results on continued operations | 29 | 37 |
| (1) | (1) | Minority interests |
(1) | (1) |
| 106 | 114 | Adjusted Net Profit | 28 | 36 |
| 0 | (8) | (2) Adjusted Results on discontinued operations |
0 | (2) |
| 106 | 107 | Adjusted Results for the period | 28 | 34 |
| 26% | 23% | Tax Rate | 30% | 24% |
Note: figures include IFRS 16 effect
(1) Figures include the effect related to the accounting mechanisms of the Tax Equity Partner of the US portfolio
(2) 1H e 2Q 2023 figures refer to CCGT Results
1H 2024 CASH FLOW STATEMENT
(1) They do not include IFRS 16 liability, respectively for €172mn as at 31.12.23, and €213mn as at 30.6.24
(2) They include €1.4mn of dividends to Minorities
(3) EBITDA includes IFRS 16 effect for €7.8mn
16
A NEW SUCCESSFUL GREEN BOND ISSUANCE
- On June 26 ERG issued its 4th Green Bond (settled on July 3, 2024)
- Very well received by the market: demand peaking >5x
- Significant participation of international investors and national institutions
2024 GUIDANCE
Paolo Merli - CEO
CONFIRMING 2024 GUIDANCE
520-580(1)
Adjusted EBITDA (€ mn)
(1) EBITDA guidance net of clawbacks. It includes IFRS 16 effect for €15mn
(2) It does not include IFRS16 liability, amounting respectively to €213mn (actual 1H 2024) and ~€210mn (2024 guidance) 18