VERBUND

Results for quarters 1-3/2023

Vienna, 2/11/2023

Results for quarters 1-3/2023 - At a glance

Influencing factors

  • Higher average achieved contract prices due to higher forward prices
  • Hydro coefficient of 0.93 in Q1-3/2023, higher production from reservoirs
  • Higher production from wind and PV, lower production from thermal generation
  • Lower contribution from flexibility products (Q1-3/2023: €258.8m)
  • Negative contribution from the sales segment among others due to higher procurement costs
  • Higher contribution from Gas Connect Austria GmbH and Austrian Power Grid AG
  • Negative contribution from the levy on excess profits in Austria and Romania (total EBITDA effect in Q1-3/2023 approx. €77m)

Development of results, cash flows and debt

  • Reported and adjusted EBITDA €3,549.3m (+83.6%)
  • Group result €1,980.6m (+85.9%), adjusted Group result €2,000.9m (+103.6%)
  • Operating cash flow €4,153.4m (Q1-3/2022: €1,120.8m); Free cash flow after dividends €1,475.0m
    (Q1-3/2022:€-628.4m)
  • Net debt €2,426.7m (-37.8%)

Group level guidance 2023 *

  • EBITDA rep. & adj. approx. €4,150m - €4,450m; Group result reported approx. €2,250m - €2,450m
  • Pay-outratio 45% - 55% on adjusted Group result between approx. €2,270m - €2,470m

* The earnings forecast and the information on the expected payout ratio are contingent on VERBUND not being impacted further by possible energy policy measures to skim off some of the profits at energy companies.

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Hedging volumes

Hedging volumes 20231/ TWh

MtM

198.2

188.2

(13/10/23):

177.8

176.8

173.2

€171.6

13.1

8.8

5.9

3.1

1.0

12.7

16.7

19.3

22.0

23.4

30/9/22

31/12/22

31/3/23

30/6/23

30/9/23

Hedging volumes 20241/ TWh

144.5

156.0

155.6

151.8

131.4

19.4

19.0

15.5

14.2

12.5

6.2

6.6

10.0

11.3

13.0*

30/9/22

31/12/22

31/3/23

30/6/23

30/9/23

MtM

(13/10/23):

€148.6

  • Additional hedging measures by options amounting to 1.8 TWh

Hedging volumes 20251 / TWh

Historic contract prices

141.1

140.7

138.3

MtM

(13/10/23):

‒ FY2022: €115.1/MWh

€133.9

16.1

15.8

‒ FY2021: €54.8/MWh

17.2

8.5

9.5

9.8

‒ FY2020: €44.6/MWh

31/3/23

30/6/23

30/9/23

Achieved contract price

Open volumes

Hedged volumes

Page 3

  • Hydro production excluding volumes for holders of interests (at cost) and volumes resulting from pumping.

Hydro segment

Facts and figures

  • Higher generation from hydropower in Q1-3/2023
    • Hydropower: 23,102 GWh (+10.9%)
      • Higher hydro coefficient in Q1-3/2023 (0.93 vs. 0.84)
      • Storage power: 3,995 GWh (+7.1%)
  • Higher average achieved prices
  • Flexibility products decreased by €38.4m

Current information

  • 480 MW Limberg III pumped-storage power plant project
    • planned COD 2025
  • 45 MW Reißeck II+ pumped-storage power plant project
    • planned COD 2024
  • 11 MW Gratkorn run-of-river power plant project
    • Planned COD 2024
  • 14.3 MW Stegenwald run-of-river power plant project

‒ Planned COD 2025

EBITDA/ €m

3,115

1,815

Q1-3/2022

Q1-3/2023

Hydro coefficient (run-of-river)

long-term

0.94

0.93

0.96

0.90

average

0.86

0.75

Q1-3/2022 (0.84)

Q1-3/2023 (0.93)

Q1

Q2

Q3

Page 4

New renewables segment

Facts and figures

  • Higher generation from wind power in Q1-3/2023: 858 GWh (+19.5%)
    • Austria 157 GWh (-6.7%)
    • Germany 141 GWh (+10.6%)
    • Romania 391 GWh (+5.2%)
    • Spain 169 GWh
  • Photovoltaic: 287 GWh (Q1-3/2022: 4 GWh)
    • Austria: 3 GWh (-9.8%)
    • Spain: 284 GWh

Current information

  • Signing of a 56.4 MW wind portfolio in Germany in Oct 2023.
  • Acquisition of wind turbines in Spain with an installed capacity of 257 MW and a hybridization/repowering project pipeline.
  • In addition, work continued on the implementation of three wind farms with an installed capacity of around 100 MW (one of these with 39 MW was already commissioned in June 2023).
  • Project development continued also in Austria, Germany, Romania, Italy and Albania.

EBITDA/ €m

158

90

Q1-3/2022Q1-3/2023

New renewables coefficient

1.06

1.03

1.11

1.00

1.01

0.93

long-term

average

Q1-3/2022 (1.01)

Q1-3/2023 (1.04)

Q1

Q2

Q3

Page 5

Expansion of new renewables generation (Wind & PV, without B2B, as of 30/9/2023)

763,6 MW wind * /

253,1 MWp PV * in operation

62,3 MW wind and 52,7 MWp PV in

construction

Target: 3,8 GW

in 2030 (wind & PV)

In operation/ in construction / target 2030:

345,2 MW / 62,3 MW / 425,1 MW

249,7 MWp / 50 MWp / 1.698 MW

EBITDA 2023e: €94,7m

Historic CAPEX*: €22,6m

CAPEX until 2030**: €1.005,0m

In operation/ in construction / target 2030:

86,1 MW / - / 163,3*** MW

EBITDA 2023e: €37,8m

Historic CAPEX*: €0m

- /- / 381,6 MW

CAPEX until 2030**: €349,5m

Kavsakbendi - 413 MW GDK

In operation/ in construction / target 2030:

106,0 MW / - / 163,4 MW

3,4 MWp / 2,7 MWp / 78,1 MW

EBITDA 2023e: €6,8m

Historic CAPEX*: €96,9m

CAPEX until 2030**: €151,7m

In operation/ in construction / target 2030:

226,3 MW / - / 459,3 MW

- /- / 129,0 MW EBITDA 2023e: €73,6m Historic CAPEX*: €364,5m CAPEX until 2030**: €399,6m

In operation/ in construction / target 2030:

In operation/ in construction / target 2030:

- /- / 72,6 MW

EBITDA 2023e: €0m

- /- / 0 MW

EBITDA 2023e: €0m

Historic CAPEX*: €0m

- /- / 250,0 MW

Historic CAPEX*: €0m

- /- / 47,4 MW

CAPEX until 2030**: €124,9m

CAPEX until 2030**: €220,7m

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* until 30.09.2023, excl. M&A

** excl. M&A, excl. historic CAPEX

*** excl. signed 56.4 MW wind portfolio in Germany as communicated on 25.10.2023

Sales segment

Facts and figures

  • The change in EBITDA is due, among other things, to a better result from the valuation of energy derivatives in connection with future energy deliveries, while sharply increased procurement prices for electricity and gas in particular had a counteracting effect.
  • Contribution from flexibility products decreased by €3.3m
  • Approx. 496.000 end customers

EBITDA/ €m

-178

-165

Q1-3/2022

Q1-3/2023

Current information

  • Focus on
    • E-Mobility
    • Batteries
  • Various mitigating measures to compensate price increases for end customers

The Sales segment comprises

  • trading
  • sales activities and
  • energy services

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Grid segment

EBITDA Grid segment Q1-3/2023: €413.7m (Q1-3/2022: €211.5m)

Local GAAP: stable earnings

  • Differences compensated by a regulatory account

IFRS: volatile earnings (no regulatory account)

Contribution from APG in Q1-3/2023 (IFRS): €241m EBITDA

APG WACC for regulatory period (2023)

  • Ø 3.97% pre-tax (3.72% for existing, 4.88% for new assets)
  • WACC for new assets to be reviewed on a yearly basis
  • WACC for existing assets to be reviewed 2023 (valid until 2028)

Contribution from GCA in Q1-3/2023 (IFRS)

  • €173m EBITDA

GCA TSO WACC for regulatory period (2021-2024)

  • 4.98% nominal incl. capacity risk

GCA DSO WACC for regulatory period (2023-2027)

  • 3.72% for existing assets, 4.88% for new assets; WACC for new assets to be reviewed annualy

APG EBITDA/ €m

RAB 2022: €2,182m

RAB 2023: €2,600m

Approx.

360

241

156

Q1-3/2022

Q1-3/2023

Guidance APG *

2023E

GCA EBITDA/ €m

RAB 2022: €647m

RAB 2023: €647m

Approx.

173

190

56

Q1-3/2022

Q1-3/2023

Guidance GCA

2023E

Page 8

All other segments

Facts and figures

  • Decline in total revenue was due to the reduced use of the Mellach CCGT, leading to lower electricity revenues despite higher sales prices. Lower district heating generation led to declining district heating revenues.
  • Fuel consumption decreased due to the reduced use of power plants.
  • As a result, and due to positive effects from the valuation of energy derivatives in connection with future energy deliveries, EBITDA increased.
  • Thermal Power: 379 GWh (-56.9%)
    • CCGT Mellach: 375 GWh
  • Flexibility products decreased by €14.3m

Current information

  • CCGT Mellach no longer contracted from APG for congestion management
    • Line 10 and line 20 operated on market-driven basis at least until 1 April 2025
  • District heating power plant Mellach contracted from APG from 1 October 2023 to 30 September 2024

EBITDA/ €m

70

31

Q1-3/2022

Q1-3/2023

KELAG contribution to financial result / €m

47

13

Q1-3/2022

Q1-3/2023

Page 9

Key financial figures (1)

EBITDA/ €m

+84%3,549

1,933

Q1-3/2022

Q1-3/2023

Additions to tangible assets (infrastructure) / €m

212

236

Q1-3/2022

Q1-3/2023

Group result/ €m

+86%

1,981

2,001

1,065 983

Reported

Adjusted

Q1-3/2022Q1-3/2023

Additions to tangible assets (renewables business & others) / €m

751

599

Q1-3/2022Q1-3/2023

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Disclaimer

Verbund AG published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 07:21:49 UTC.