First three months 2024 interim report

continued Green Capacities Portfolio growth

AB “Ignitis grupė” (hereinafter – the Group) publishes its first three months 2024 interim report, which is attached to this notice, and announces that the Group’s Adjusted EBITDA amounted to EUR 181.7 million (+21.2% YoY). Growth was recorded across all business segments, except Reserve Capacities. Customers & Solutions segment electricity B2C activities continued to be loss-making (EUR -8.2 million). The Green Capacities segment remains the largest contributor with a 42.4% share of the Group’s total Adjusted EBITDA.

We increased Investments by 73.4% YoY to EUR 209.5 million. Two thirds of the total Investments were directed towards the Green Capacities segment, and 90.5% to Lithuania. The Investments into Green Capacities have tripled and reached EUR 138.9 million, with the majority directed towards new onshore wind farms.

The Group’s leverage metrics remained strong, with FFO/Net Debt ratio at a solid level of 28.9% (compared to 29.4% as of 31 December 2023).

Business development

In 3M 2024, we increased our Green Capacities Portfolio to 7.4 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 reached a number of significant milestones in the expansion and development of our Green Capacities Portfolio, including the following:
– we, together with our partner CIP, won the second seabed site (Liivi 1) in the Estonian offshore wind tender and see the site as a natural extension of the Liivi 2 sea area (secured in December 2023);
– Silesia WF I (50 MW) in Poland has reached COD;
– we have secured grid capacity for the first BESS projects (<190 MW) in Lithuania;
– we have submitted a bid in the tender for the second 700 MW Lithuanian offshore wind project. However, due to the limited number of participants, the tender did not convene but is expected to take place in due course, following a review of the tender conditions.

In Networks, the total number of installed smart meters has exceeded 836 thousand.

In Customers & Solutions, we continue to expand the EV charging network in the Baltics, with multiple locations secured for the installation of 67 EV charging points.

Sustainability

Our Green Share of Generation decreased by 15.7 pp to 79.9% YoY due to proportionally higher electricity generation at CCGT (Reserve Capacities).

We reduced our GHG emissions by 60.4% in Scope 2, while our Scope 1 and Scope 3 emissions compared to 3M 2023 increased by 49.4% and 5.5% respectively. Total emissions amounted to 1.61 million t CO₂-eq and increased by 12.5% YoY.

Carbon intensity of Scope 1 and 2 GHG emissions decreased by 33.8% YoY to 220 g CO₂-eq/kWh due to higher electricity production from renewables and reduction of Scope 2 emissions.

No fatal accidents were recorded, and employee Total Recordable Injury Rate (TRIR) was 0.99, contractor TRIR – 0, both well below the targeted threshold. eNPS remained high at 65.5%.

Shareholder returns and 2024 outlook

In line with our Dividend Policy, a dividend of EUR 0.643 per share, corresponding to EUR 46.5 million, was distributed for H2 2023.

We maintain our full-year 2024 Adjusted EBITDA guidance of EUR 440–470 million and Investments guidance of EUR 850–1,000 million.

Key financial indicators (APM¹)

EUR, millions	3M 2024	3M 2023	Change
Adjusted EBITDA	181.7	149.9	21.2%
Green Capacities2	77.1	70.0	10.1%
Networks	65.5	48.7	34.5%
Reserve Capacities	20.0	28.6	(30.1%)
Customers & Solutions	17.4	0.9	n/a
Other activities and eliminations3	1.7	1.7	-%
Adjusted EBITDA Margin	28.1%	17.0%	11.1 pp
EBITDA	188.9	195.3	(3.3%)
EBITDA Margin	28.9%	21.0%	7.9 pp
Adjusted Net Profit	112.6	88.7	26.9%
Net Profit	118.7	127.2	(6.7%)
Net Profit Margin	18.2%	13.7%	4.5 pp
Investments	209.5	120.8	73.4%
Green Capacities2	138.9	46.2	200.6%
Networks	63.7	71.6	(11.0%)
Reserve Capacities	0.2	0.3	(33.3%)
Customers & Solutions	2.6	0.6	333.3%
Other activities and eliminations3	4.1	2.1	95.2%
FFO	169.5	185.3	(8.5%)
FCF	5.0	208.0	(97.6%)
Adjusted ROE LTM	14.2%	13.9%	0.3 pp
ROE LTM	14.2%	18.4%	(4.2 pp)
Adjusted ROCE LTM	11.1%	12.1%	(1.0 pp)
ROCE LTM	10.7%	16.7%	6.0 pp
Basic earnings per share	1.64	1.76	6.8%
	31 Mar 2024	31 Dec 2023	Change
Net Debt	1,287.8	1,317.5	(2.3%)
Net Working Capital	144.4	175.2	(17.6%)
Net Debt/Adjusted EBITDA LTM, times	2.49	2.72	(8.5%)
FFO LTM/Net Debt	28.9%	29.4%	(0.5 pp)

¹ All, except Net profit, are Alternative Performance Measures (APMs). Definitions and formulas of the financial indicators are available on our website.
² Previously – Green Generation.
³ Other activities and eliminations – includes consolidation adjustments, related-party transactions, and the financial results of the parent company.


Earnings call

In relation to the announcement of the first three months 2024 interim report, an earnings call will be held on Wednesday, 15 May 2024, at 1:00 pm Vilnius / 11:00 am London time.

To join the earnings call, please register at: https://edge.media-server.com/mmc/go/Ignitis3M2024resultsandstrategicp ...  
 
It will be also possible to join the earnings call by phone. To access the dial-in details, please register here. After completing the registration, you will receive dial-in details on screen and via email. You will be able to dial in using the provided numbers and the unique pin or by selecting ‘Call me’ option and providing your phone details for the system to reach you automatically as the earnings call starts.

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

Presentation slides will be available prior to the call:
https://ignitisgrupe.lt/en/reports-and-presentations

The interim report, including the fact sheet (in Excel), will be available for download at:
https://ignitisgrupe.lt/en/reports-and-presentations

For additional information, please contact:

Communications
Artūras Ketlerius
[phone]
[e-mail]

Investor Relations
Ainė Riffel-Grinkevičienė
[phone]
[e-mail]

Attachment

• First three months 2024 interim report