Presentation of the Companys Performance and Results 9 Months of - - PowerPoint PPT Presentation

Presentation of the Company‘s Performance and Results 9 Months of 2017

Lietuvos Energijos Gamyba, AB (LEG)

Eglė Čiužaitė 17/11/2017 Vilnius

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Table of Contents

About the Company Overview of 9 months of 2017:

The most important events Trade and commodities market overview LEG production amounts LEG financial results

Achievements and plans during H2 2017 Your questions

Planned duration: 20 minutes + Your questions

Presented by EGLĖ ČIUŽAITĖ Chairwoman of the Board and CEO Moderated by VALENTAS NEVIERA Head of Communication

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LEG provides services that are necessary for the energy system security

ELEKTRĖNAI COMPLEX KRUONIS PSHP KAUNAS A. BRAZAUSKAS HPP

Production of electricity and heat Commercial production of electricity Commercial production of electricity System services (main – tertiary reserve), strategic reserve System services (main – secondary reserve) System services Capitalization 30/09/2017

€ 406

million Shareholder structure

96.75% - Lietuvos Energija, UAB 3.25% - minority shareholders

Minority shareholders – approximately

5 900

LE

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The most important events of Q3 2017

A loan refinancing agreement of up to € 60 million was concluded, LEG assets are no longer pledged as collateral

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July

Two members of the Supervisory Board were elected for a new 4-year term of office

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August

Annual emissions monitoring tests in Elektrėnai Complex were completed

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September

LEG assessed the technical condition of Vilnius Power Plant-3 and submitted a report to LE

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September

LEG board was re-elected for a new 4-year term of office

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September

The shareholders approved the payment of € 10.8 million of dividends for H1 2017

29

September

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20 40 60 1 3 5 7 9 11 1 3 5 7 9 €/MWh

Wholesale electricity price in NP Lithuania

Peak (6-22 h) Off-peak (22-6 h) NP LT price (0-24 h)

Trade and commodities market overview

75% 77%

0% 20% 40% 60% 80% 100% 2016 9M 2017 9M % of full demand

Electricity balance in Lithuania

Other Wind PP Kaunas A. Brazauskas HPP Kruonis PSHP Elektrėnai Complex Import 2016 2017

2016 9M/2017 9M -1,9%

10 20 30 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 €/MWhA

Purchase price of gas

4 6 8 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 €/t CO2

Price of CO2 emission allowances (EUA)

2016 9M/2017 9M -0,4%

Source: Energijos tiekimas, Nord Pool, Company‘s accounting information, Platts Remark: gas price – without taxes for user capabilities and without constituent for security of LNGT

2016 2017 2016 2017

30/9/2016 / 30/9/2017 +42,1%

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50 100 150 200 250 300 350 400 450 Elektrėnų kompleksas Kruonio HAE Kauno A. Brazausko HE

2016

Production of LEG power plants, GWh

I ketv. II ketv.

34 153 118 129 118 85 145 140 54

Elektrėnai Complex Kruonis PSHP Kaunas A. Brazauskas HPP

2016

Q1 Q2 Q3

6 104 132 73 124 109 50 176 77

Elektrėnai Complex Kruonis PSHP Kaunas A. Brazauskas HPP

2017

Q1 Q2 Q3

More production at Kaunas HPP in 9M 2017, 13% less of total generated electricity

Total: 308 Total: 411 Total: 257 Total: 129 (-58%) Total: 404 (-2%) Total: 318 (+23%)

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41.4 50.7 2.7 2.9 30.1 32.1 22.5 15.1 20.5 25 50 75 100 125 2017 9M 2016 9M € MLN

LEG revenue

Revenue of sales of electricity energy and related services Revenue of sales of heat production Revenue of sales of capacity reserve services Subsidies for strategic reserve Revenue from other operations 19.5 19.7 25.3 37.6 18.7 15.4 5.8 5.5

4.1 3.3

• 1.3

5.3 5.5 4.2

• 5

20 45 70 95 2017 9M 2016 9M € MLN

LEG expenses

Purchases of electricity or related services Gas, biomass and heavy fuel expenses Depreciation and amortisation Wages and salaries and related expenses Repair and maintenance expenses Emission allowance revaluation expenses Reversal of impairment of other non-current assets Other expenses

Total: € 121.3 MLN Total: € 97.6 MLN (-20%) Total: € 92.4 MLN Total: € 77.4 MLN (-16%)

Decrease in revenue – in line with effective cost control

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Profitability of main activities increased

14.4 24.7 12.9 17.2 13.7

31.0 39.3 38.8 25 50 10 20 30 40 50 2016 9M 2017 9M

% € MLN

EBITDA and EBITDA margin

Commercial activities Impact of regulators decisions Regulated activities EBITDA margin EBITDA margin considering the impact of Regulator decisions

22.0 19.7 12.2 18.2

5 10 15 20 25 2016 9M 2017 9M

€ MLN

Net profit

Net profit Net profit after the elimination of one-off factors and EUA market price change

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Achievements and plans during H2 2017

Changes in management bodies

Supervisory Board: Two members of the Supervisory Board were elected for a new 4-year term of

• ffice

An independent member of the Supervisory Board is being selected (the selection started on 15 November) Board: A new LEG board and CEO were elected for a new term of office

Projects and research

The wind farm project in Kruonis PSHP: Preparatory work is done We are waiting for policy regarding the support schemes of RES development The project to install the fifth unit in the Kruonis PSHP: An application was submitted to get EU funding for the research on poles and infrastructure We are waiting for regional decisions regarding the selected synchronisation model Other projects: The assessment of the technical condition

• f Vilnius Power Plant-3 is complete

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Achievements and plans during H2 2017

Production

Compulsory testing of the units is complete (Q3) An investment into optimising the CCU

• peration was made (Q3)

The scheduled check of the CCU and technical maintenance works were performed (Q4) Higher YOY generation by hydroelectric power plants during Q3 Higher YOY generation by hydroelectric power plants during Q4

Reserves services 2018

Preliminary results of the tertiary power reserve auction were announced There are no final decisions regarding reserves (tertiary and strategic) for 2018 yet

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Thank You. Your questions?