Enel Russia 9M 2017 Results 02/11/2017 Moscow Enel Russia 9M 2017 - - PowerPoint PPT Presentation

Enel Russia 9M 2017 Results

Moscow 02/11/2017

Enel Russia 9M 2017 Results

• Financial highlights
• Net power output and sales
• Unit margin on sales
• Revenues and costs
• EBITDA evolution
• From EBITDA to net income
• Net debt evolution
• Focus on liquidity

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Agenda

Enel Russia 9M 2017 Results

9M16 9M17 Change Revenues 51,792 53,876 +4.0% EBITDA 9,539 12,859 +34.8%

• EBITDA margin

18.4% 23.9% +5.5% Net income 2,052 6,147 3x Net debt 20,3482 20,075

• 1.3%

EBITDA/Net financial expenses3 4.2x 7.3x +3.1 Net debt/EBITDA4 1.7x 1.2x

• 0.5

Net debt/Equity 0.64x 0.51x

• 0.13

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Financial highlights (RUB mn)1

• Earnings growth due to delta DPM5 payment received by two CCGT units, starting

from 2017

• Bottom line additionally supported by lower financial charges

1 Unaudited financial results under IFRS 2 As of December 31, 2016 3 Excluding FX differences and corresponding change in fair value of derivatives, loss on the extinguishment of long-term loans 4 Net debt at the end of the period divided by 12 months rolling EBITDA 5 Capacity supply agreement or DPM (Договор о предоставлении мощности)

Enel Russia 9M 2017 Results

9M16 9M17 Net output (TWh) CCGT Coal Gas

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Net power output and sales 29.9 29.1

45% 44% 11% 48% 39% 13%

9M16 9M17 Power sales (TWh) Free Regulated

34.4 33.3

82% 18% 81% 19% 80%

9M16 9M17

51%

9M16

50%

9M17 Plant availability Utilization on net electric capacity

• Higher Nevinnomysskaya production partially offset lower conventional gas output
• Solid 3Q17 CCGT and coal facilities output explained by yearly maintenance schedule

81%

• 2.6%
• 3.2%

Enel Russia 9M 2017 Results

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Unit margin on sales (RUB/MWh)¹

9M16 9M17 Unit cost of sales³

903 899 Unit margin down due to lower free power prices following strong nuclear and hydro production

1 Excluding capacity sales 2 Including regulated power sales, day ahead market and balancing market sales

³ Including energy purchases

9M16 9M17 Unit selling price²

1,104 1,094

9M16 9M17 Unit margin on sales

201 195

• 0.9%
• 0.5%
• 2.9%

Enel Russia 9M 2017 Results

9M16 9M17 Operating revenue breakdown Heat and other Capacity Power

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Revenues and costs (RUB bn) 51.8 53.9

11.1 37.9 2.8 14.6 36.5 2.8

9M16 9M17 Variable costs Purchased power Fuel

33.0 32.0

4.8 28.2 4.1 27.9

• Revenues up due to higher DPM capacity payments
• Effective overhead costs management

9M16 9M17 Fixed costs Overhead Personnel O&M not manageable O&M manageable

9.5 9.3

3.4 2.6 3.3 2.6 2.4 2.6 1.1 0.8

+4.0%

• 3.1%
• 2.5%

Enel Russia 9M 2017 Results

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EBITDA evolution (RUB mn) EBITDA solid improvement due to better generation margin 9M16 9M17 9,539

+3,078 +239 +3

12,859

Generation margin Fixed costs Other items +34.8%

Enel Russia 9M 2017 Results

9M16 9M17 Change EBITDA 9,539 12,859 +34.8% Amortisation, depreciation and impairment (2,624) (2,720) +3.6% EBIT 6,915 10,139 +46.6% Net financial charges (4,463) (2,357)

• 47.2%

EBT 2,452 7,782 3x Income tax (400) (1,635) 4x Net income 2,052 6,147 3x

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From EBITDA to net income (RUB mn)

• Net income increase thanks to higher EBITDA and lower financial charges
• Financial charges down due to debt portfolio optimization, lower average debt

and one-off accounting adjustment in 1Q16¹

1 Unamortized cost derecognition in relation to long-term loan from Royal Bank of Scotland early prepayment

Enel Russia 9M 2017 Results

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Net debt evolution 31Dec16 30Sept17 20,348 20,075

• 10,121

+4,314 +1,599 +486 Cash flow from

• perations¹

1 Post working capital changes

CAPEX Net financial charges FX Net debt (RUB mn)

31Dec16 30Sept17 Hedged Debt on Total Debt

Unhedged Hedged

100% 100%

Cost Weight Cost Weight RUB 12.1% 60% 10.9% 71% EUR 2.8% 40% 1.7% 29% Average Cost of Debt 9M16 9M17

• 273
• Stable net debt with solid operating cash flow covering payments made over 9M17
• Dividends upon FY2016 distributed in line with new dividend policy

+1,036 Income tax +2,413 Dividends

Enel Russia 9M 2017 Results

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Focus on Liquidity

31Dec16 30Sept17 Utilized amount

24% 24%

31Dec16 30Sept17 Total credit facilities avaliable (RUB bn)¹ Long-term Short-term

107.1 107.2

97% 87% 13% 3%

1 Not adjusted for FX differences on EUR-nominated facilities

Commercial papers reclassification to short-term one year before expected maturity

Enel Russia 9M 2017 Results

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Contacts Enel Russia Investor Relations Ekaterina Orlova +7 495 539 31 31 ext. 7746 ekaterina.orlova@enel.com Visit our website at: www.enelrussia.ru (Investors section)

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Thank you