1Q 2019 results Enel Russia April 25, 2019 Agenda Financial - - PowerPoint PPT Presentation

1Q 2019 results Enel Russia

April 25, 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

2

Financials up on favourable market prices and internal cost discipline

3

1Q 2019 1Q 2018 Δ YoY Revenue (RUB mn) 19,101 18,542 +3% EBITDA (RUB mn) 5,296 4,600 +15%

• EBITDA margin

27.7% 24.8% +3% Net ordinary income (RUB mn) 3,000 2,319 +29% Net debt (RUB mn) 18,444 19,376¹

• 5%

EBITDA/Net financial expenses² 13.9x 9.7x +4.2 Net debt/EBITDA 1.0x³ 1.0x

• Net debt/Equity

0.40x 0.40x

• Herein after - unaudited financial results under IFRS unless otherwise stated

¹ As of December 31, 2018 ² Excluding FX differences and corresponding gain/loss from derivatives ³ Net debt at the end of the period divided by 12 months rolling EBITDA

Gas units affected by lower power consumption due to warmer temperature, and overcapacity

1Q 2018 1Q 2019 Net output (TWh) CCGT Coal Conventional gas

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9.7 9.3 4.5 3.5 1.6 4.5 3.2 1.5 1Q 2018 1Q 2019 Power sales (TWh) Free Regulated 11.0 10.7 8.7 2.3 8.5 2.2 87% 1Q 2018 1Q 2019 50% 48% Plant availability¹ Utilization on net electric capacity 89%

• 4%
• 2%

1 Annualized

1Q 2018 1Q 2019

Lower hydro production contributed to market prices growth

5

1Q 2018 1Q 2019 Unit cost of sales (RUB/MWh)² 908 943

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

1Q 2018 1Q 2019 Unit selling price (RUB/MWh)¹ 1,090 1,161 1Q 2018 1Q 2019 Unit margin on sales (RUB/MWh) 183 218 +6% +4% +19%

Power revenues up thanks to strong pricing; fixed costs to be smoothened throughout the year

1Q 2018 1Q 2019 Operating revenues (RUB bn) Heat and other Capacity Power/electricity

6

18.5 19.1 5.3 11.8 1.4 5.4 12.4 1.3 1Q 2018 1Q 2019 Variable costs (RUB bn) Purchased power Fuel 11.0 11.1 1.4 9.6 1.4 9.7 1Q 2018 1Q 2019 Fixed costs (RUB bn) Overhead Personnel O&M not manageable O&M manageable 3.1 2.7 1.2 0.7 1.1 0.6 0.9 0.7 0.3 0.3 +3% +1%

• 14%

Fixed costs dynamics reflects property tax on movables removal from 2019

Substantial EBITDA increase on higher margins and fixed costs scheduling

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1Q 2018 1Q 2019 4,600 +495 +442 (240) 5,296 Gross margin Fixed costs Other items +15% EBITDA evolution (RUB mn)

Net income up on EBITDA and optimised debt cost and currency structure

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1Q 2019 1Q 2018 Δ YoY EBITDA (all - RUB mn) 5,296 4,600 +15% DD&A¹ and impairment (1,224) (1,038) +18% EBIT 4,072 3,561 +14% Net financial charges (299) (645)

• 54%

EBT 3,773 2,916 +29% Income tax (773) (597) +30% Net ordinary income 3,000 2,319 +29%

¹ Depreciation, depletion and amortization

Solid operating cash flow compensated the payments made over the period

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31Dec18 31Mar19 19,376 18,444 (4,437) +2,850 +689 (495) Cash flow from

• perations¹

1 Post working capital changes

Capex Net financial charges FX Net debt (RUB mn) 31Dec18 31Mar19 Hedged debt on Total debt

Unhedged Hedged

100% 100% AVG Cost Weight 31/03/18 AVG Cost Weight 31/03/19 RUB 10.9% 69% 8.3% 79% EUR 1.7% 31% 1.6% 21% Total debt profile 1Q 2018 1Q 2019

• 932

+461 Income tax

Liquidity position enhanced by new facilities

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31Dec18 31Mar19 Total credit facilities: utilised & available (RUB bn)¹ Long-term Short-term 105.3 127.3 88% 93% 7% 12%

1 Not adjusted for FX differences on EUR-nominated facility

+19%

20% % utilised 26%

22.5bn RUB loan with Sberbank was signed to finance the construction of Murmansk wind project 2019 updates 5bn RUB of commercial papers successfully placed with 8.50-8.60% coupon rate (April 2, 2019)

1Q 2019 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)