Interim report first six months 2024: strategy execution with three Green Capacities projects achieving COD and adjustment of the guidelines for 2024

AB “Ignitis grupe” (hereinafter – the Group) publishes its interim report for the first six months of 2024, which is attached to this notice, and announces that the Group’s adjusted EBITDA amounted to EUR 289.7 million (+14.3% year-on-year). The growth was driven by improved results in the Green Capacities and Networks segments and the Green Capacities segment remains the largest contributor with a share of 46.4% of our total adjusted EBITDA. The electricity B2C activities of the Customers & Solutions segment remained loss-making (EUR -18.5 million).?

Our investments amounted to EUR 422.3 million (+4.9% YoY), of which 63.8% was directed to the Green Capacities segment and 87.8% to Lithuania. Investments in Green Capacities reached EUR 269.6 million (+15.2% YoY), of which the majority was directed to new onshore wind farms in Lithuania.

The Group’s leverage figures remained strong, with the FFO LTM/Net Debt ratio at a solid level of 32.0% (compared to 29.4% as at 31 December 2023). S&P Global Ratings also affirmed the Group’s ‘BBB+’ (stable outlook) credit rating.

Business Development

In 6M 2024, we increased our Green Capacities Portfolio to 7.7 GW (from 7.1 GW) and Installed Capacity to 1.4 GW (from 1.3 GW). Our Secured Capacity stood at 2.9 GW.

We have achieved a number of key milestones in the expansion and development of our Green Capacities Portfolio, including the following:

– together with our partner CIP we have won the second seabed site (Liivi 1) in the Estonian offshore wind tender and see the site as a natural extension of the seabed site Liivi 2 (acquired in December 2023);

– Silesia WF I (50 MW) in Poland has reached COD;

– The Vilnius CHP biomass unit has reached full COD capacity (71 MWe, 170 MWth);

– The Taurage solar park (22.1 MW) in Lithuania has reached COD;

– the first wind turbine has been erected in the largest wind farm under construction in the Baltic States, Kelme WF I & II (300 MW) in Lithuania;

– we have secured land for the development of hybrid projects (314 MW), i.e. we plan to develop wind farms near our Latvian solar projects;

– we have secured grid capacity for our first BESS projects (

In Networks, we have submitted the updated 10-year investment plan (2024-2033) to the regulator (NERC) for public consultation and coordination. The plan foresees a 40% increase in investments to €3.5 billion (from the previously submitted draft of €2.5 billion over the period 2022-2031). In addition, the total number of smart meters installed has passed 900 thousand.

In Customers & Solutions, we continue to expand the electric vehicle charging network in the Baltics, having installed a total of 655 electric vehicle charging stations (+279 since 31 December 2023).

Sustainability

Our green share in generation amounted to 84.8% (-7.7 pp year-on-year) as a result of proportionally higher electricity generation in CCGT (Reserve Capacity).

We reduced our GHG emissions by 41.9% in Scope 2, while our Scope 1 and Scope 3 emissions increased by 19.2% and 5.9% respectively compared to 6M 2023. Total emissions amounted to 3.04 million tonnes CO2-eq (+14.4% YoY). This increase was expected and is mainly due to a 237.6% increase in out-of-scope (biogenic) emissions from the operations of the Vilnius CHP biomass unit (the unit reached full COD in May 2024).

The carbon intensity of our Scope 1 and 2 greenhouse gas emissions decreased to 256 g CO2-eq/kWh (-28.6% year-on-year) due to lower Scope 2 emissions and higher electricity generation from renewable energy sources.

No fatalities were recorded. Our employee TRIR was 1.00, contractor TRIR – 0.21, both well below the target threshold. Our eNPS remained high at 66.5.

Shareholder returns and 2024
prospect

In line with our dividend policy, we propose to pay a dividend of EUR 0.663 per share, equivalent to EUR 48.0 million, over 6 months 2024, subject to the resolution of our extraordinary general meeting of shareholders on September 11, 2024.

Following our strong performance, we raise our Adjusted EBITDA guidance for 2024 to EUR 450-480 million (from EUR 440-470 million). Our capital expenditure guidance remains in the range of EUR 850-1,000 million.

Key Financial Indicators (APM¹)

EUR, millions	6M 2024	6M 2023	*Change*
Adjusted EBITDA	289.7	253.5	14.3%
Green Capabilities	134.5	109.1	23.3%
Networks	115.7	88.7	30.4%
Reserve capacities	25.2	32.2	(21.7%)
Customers & Solutions	11.8	21.7	(45.6%)
Other activities and eliminations2	2.6	1.9	36.8%
Adjusted EBITDA margin	26.6%	18.3%	8.3 pp
EBITDA	294.2	239.9	22.6%
EBITDA margin	26.9%	17.5%	9.4 pp
Adjusted net profit	164.6	150.1	9.7%
Net profit	168.4	155.8	8.1%
Net profit margin	15.4%	11.4%	4.0 pp
Investments	422.3	402.6	4.9%
Green Capabilities	269.6	234.0	15.2%
Networks	135.8	161.9	(16.1%)
Reserve capacities	0.5	1.3	(61.5%)
Customers & Solutions	7.8	2.1	271.4%
Other activities and eliminations2	8.6	3.3	160.6%
FFO	225.4	161.7	39.4%
How long does it take to get an FCF?	(105.0)	50.2	n/a
Custom ROE LTM	13.5%	14.2%	(0.7 pp)
ROE-LTM	15.0%	15.9%	(0.9 (pp)
Adjusted ROCE LTM	10.4%	11.3%	(0.9 (pp)
ROCE-LTM	11.6%	13.0%	(1.4 pp)
Basic earnings per share	2.33	2.15	8.4%
	30 June 2024	Dec 31, 20203	*Change*
Net debt	1,411.0	1,317.5	7.1%
Net working capital	113.7	175.2	(35.1%)
Net Debt/Adjusted EBITDA LTM, times	2.71	2.72	(0.4%)
FFO LTM/Net Debt	32.0%	29.4%	2.6 pp

^{1?All but net profit are alternative performance measures (APMs). Definitions and formulas of the financial indicators are available on our website.}
^{2 Other activities and eliminations – includes consolidation adjustments, related party transactions and the financial results of the parent company.}

Profit Talk

In connection with the announcement of the 6-month 2024 results, an earnings call will be held on Wednesday, August 14, 2024 at 1:00 p.m. Vilnius time / 11:00 a.m. London time.

To participate in the earnings call, please register at: https://edge.media-server.com/mmc/go/Ignitis6M2024results/

It is also possible to participate in the earnings call by telephone. To access the dial-in details, please register here . After completing the registration, you will receive the dial-in details on the screen and via email. You can dial in using the numbers provided and the unique PIN code or by selecting the ‘Call me’ option and providing your telephone details so that the system will automatically connect you once the earnings call begins.

Any questions can be submitted in advance to the Group’s investor relations team, after registering for the earnings call or live during the call.

Presentation slides are available before the call:
https://ignitisgrupe.lt/en/reports-en-presentations

The interim report, including the fact sheet (in Excel), can be downloaded from:
https://ignitisgrupe.lt/en/reports-en-presentations

For further information please contact:

Communication
Arturas Ketlerius
+370 620 76076
[email protected]

Investor Relations
Aine Riffel-Grinkeviciene
+370?643 14925
[email protected]