Interim reporting for the first nine months of 2024: strong performance and continued project delivery. Full year Adjusted EBITDA guidance increased

AB “Ignitis grupe” (hereinafter – the Group) publishes its interim report for the first nine months of 2024, which is attached to this notice, and announces that our Adjusted EBITDA amounted to EUR 397.0 million (+15.0% on year-on-year). Growth was driven by better results in the Green Capacities and Networks segments remaining the largest contributors with a share of 45.6% of our total Adjusted. EBITDA.

We invested EUR 583.7 million and spent EUR 335.2 million, or 57.4%, on the Green Capacities segment (-7.4% year-on-year), with the majority going to new onshore wind farms in Lithuania. 85.4% of the total investments were made in Lithuania.

Our debt metrics remained strong, with the FFO LTM to net debt ratio improving to 34.2% (compared to 29.4% at December 31, 2023). S&P Global Ratings also confirmed the Group’s ‘BBB+’ credit rating (stable outlook).

Business development

In the first nine months of 2024, we increased our green capacity portfolio to 7.7 GW (from 7.1 GW), installed capacity to 1.4 GW (from 1.3 GW) and secured capacity to 3.1 GW (from 2.9 GW).

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

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

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

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

– Taurage SF (22.1 MW) in Lithuania has reached COD;

– we have made a final investment decision regarding Tume SF (174 MW) in Latvia;

– Kelme WF (300 MW) in Lithuania supplied the first power to the grid;

– Silesia WF II (137 MW) in Poland supplied the first power to the grid;

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

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

– we decided to participate in the second tender for offshore wind energy of 700 MW in Lithuania and look for partners;

– we signed a four-year PPA with Akmenes Cementas (owned by Schwenk Zement Beteiligungen), which will receive electricity from Mažeikiai WF (63 MW).

In Networks we have submitted the updated Ten Year Investment Plan (2024-2033) to the regulator (NERC) for public consultation and coordination. The plan provides for an increase in investments by 40% to 3.5 billion euros (compared to the previously submitted draft of 2.5 billion euros over the period 2022-2031). In addition, after the reporting period, the regulator (NERC) set revenue levels for 2025 at EUR 321.6 million for electricity distribution and EUR 57.1 million for natural gas distribution. The resolutions on setting the 2025 levels of RAB, WACC and additional tariff component were also adopted. In addition, the total number of smart meters installed was 968 thousand.

At Customers & Solutions we continue to expand the EV charging network in the Baltics and have installed 867 EV charging points (+491 since December 31, 2023).

Sustainability

Our green share of generation amounted to 83.6% and decreased by 5.4 percentage points year-on-year due to proportionately higher electricity generation in CCGT (Reserve Capacity).

We reduced our greenhouse gas emissions by 34.5% in Scope 2, while our Scope 1 and Scope 3 emissions increased by 21.1% and 12.9% respectively compared to the first nine months of 2023. Total emissions amounted to 4.39 million tons of CO2-eq and increased by +19.7% YoY.

The carbon intensity of our Scope 1 & 2 greenhouse gas emissions decreased by 23.5% year-on-year to 270 g CO2-eq/kWh due to increased electricity generation from renewable energy sources and the reduction of Scope 2 emissions.

No fatalities were recorded, with the TRIR for worker and contractor being 1.18 and 0.37 respectively, both below the target threshold. Our Net Promoter Score (eNPS) for employees remained high at 67.0 (an increase of 15.1 year-on-year).

Shareholder returns and 2024 prospects

In line with our dividend policy, a dividend of EUR 0.663 per share, corresponding to EUR 48.0 million, was paid out for the first half of 2024.

Following the strong performance of the Green Capacities segment in the first nine months of 2024, we are increasing our Adjusted EBITDA guidance for the full year 2024 to EUR 480-500 million (previously EUR 450-480 million). We are also updating our investment guidelines for 2024 to EUR 750–900 million (previously EUR 850–1,000 million). The update mainly concerns the timing effects of our Green Capacities Investments.

Key financial indicators (APM¹)

EUR, millions	9M 2024	9M 2023	*Change*
Adjusted EBITDA	397.0	345.3	15.0%
Green capabilities	180.9	154.4	17.2%
Networking	165.6	128.7	28.7%
Reserve capacities	36.7	38.3	(4.2%)
Customers & Solutions	11.1	20.9	(46.9%)
Other activities and eliminations²	2.7	3.0	(10.0%)
Adjusted EBITDA margin	24.5%	18.8%	5.7 p
EBITDA	397.8	348.2	14.2%
EBITDA margin	24.5%	18.9%	5.6 p
Adjusted net profit	213.3	193.0	10.5%
Net profit	214.0	212.6	0.7%
Net profit margin	13.2%	11.5%	1.7 p
Investments	583.7	633.7	(7.9%)
Green capabilities	335.2	361.9	(7.4%)
Networking	217.1	246.6	(12.0%)
Reserve capacities	2.3	2.3	-%
Customers & Solutions	17.1	5.4	216.7%
Other activities and eliminations²	12.0	17.5	(31.4%)
FFO	353.0	244.4	44.4%
FCF?	(124.5)	(115.3)	(8.0%)
Adjusted ROE LTM	13.7%	11.4%	2.3 pages
ROE LTM	14.4%	14.8%	(0.4 pages)
ROCE LTM adjusted	10.3%	8.6%	1.7 pages
ROCE LTM	10.9%	11.4%	(0.5 pages)
Basic earnings per share	2.96	2.94	0.7%
	30 September 2024	December 31, 2023	*Change*
Net debt	1,448.8	1,317.5	10.0%
Net working capital	116.2	175.2	(33.7%)
Net Debt/Adjusted EBITDA LTM, times	2.70	2.72	(0.7%)
FFO LTM/net debt	34.2%	29.4%	4.8 p

^{1?Everything, except ‘Netc gain‘, are alternative performance measures (APMs). Definitions and fFormulas of the financial indicators are available

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^{2

‘Other activities and eliminations‘

includes

consolidation adjustments,

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financial results of the parent company.}

Earnings calling

In connection with the announcement of the 9M 2024 results, an earnings call will take place on Wednesday, November 13, 2024 at 1:00 PM Vilnius / 11:00 AM London time.

To join the earnings call, register at:
https://edge.media-server.com/mmc/go/Ignitis9M2024results

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

All questions can be directed to the Group’s investor relations team in advance, upon registration for the earnings call or live, during the call.

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

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

For additional information please contact:

Communication
Laura Beganskiene
+370 654 24958
[email protected]

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