VERBUND

Full year results 2023

Vienna, 14/3/2024

Full year results 2023 - Influencingfactors

  • Significantly higher average achieved contract prices for hydro power and new renewables production due to higher wholesale prices
  • Hydro coefficient slightly below long-term average but significantly higher than 2022
  • Higher production from storage power plants due to higher inflows
  • Higher production from wind and PV because of acquired assets and new installations
  • Higher contributions from the regulated grid segment
  • Lower contribution from flexibility products because of lower spot prices and lower spreads between base and peak load energy
  • Negative contribution from levy on excess profits in Austria, Germany & Romania
  • Negative contribution from the Sales segment due to negative margins in the retail business
  • Negative non-recurring effects mainly from impairment losses because of weaker future energy market environment
  • Significant increase of capex in infrastructure and new renewables

Page 2

Hedging volumes

Hedging volumes 20231/ TWh

198.2

188.2

176.8

173.2

167.1

1.0

0.0

3.1

8.8

5.9

25.0

22.0

23.4

16.7

19.3

31/12/22

31/3/23

30/6/23

30/9/23

31/12/23

Hedging volumes 20241/ TWh

MtM

144.5

156.0

155.6

151.8

142.8

(29/2/24):

€115.0

15.5

14.2

12.5

8.7

19.0

10.0

11.3

13.0

16.9

6.6

31/12/22

31/3/23

30/6/23

30/9/23

31/12/23

Hedging volumes 20251 / TWh

141.1

140.7

138.3

131.2

17.2

16.1

15.8

15.3

8.5

9.5

9.8

10.3

31/3/23

30/6/23

30/9/23

31/12/23

Historic contract prices

MtM

(29/2/24):‒ FY2023: €167.1/MWh

€100.9

  • FY2022: €115.1/MWh
  • FY2021: €54.8/MWh

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 2023
    • Hydropower: 30,509 GWh (+14.0%)
      • Higher hydro coefficient in 2023 (0.98 vs. 0.86)
      • Storage power: 5,237 GWh (+9.6%)
  • Higher average achieved prices
  • Flexibility products decreased by €75.4m

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 MW Stegenwald run-of-river power plant project

‒ planned COD 2025

EBITDA/ €m

3,856

2,383

*

2022

2023

Hydro coefficient (run-of-river)

1.17

0.94 0.93

0.86

0.96

0.90

0.92

long-term

0.75

average

2022 (0.86)

2023 (0.98)

Q1

Q2

Q3

Q4

Page 4

New renewables segment

Facts and figures

  • Higher generation from wind power in 2023: 1,397 GWh (+46.3%)
    • Austria 224 GWh (+2.7%)
    • Germany 228 GWh (+24.0%)
    • Romania 530 GWh (+10.4%)
    • Spain 414 GWh
  • Photovoltaic: 362 GWh
    • Austria: 4 GWh
    • Spain: 358 GWh

Current information

  • Signing of a 56 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 (out of which 39 MW and 35 MW have already been commissioned in 2023).
  • Project development continued also in Austria, Germany, Romania, Italy and Albania.

EBITDA/ €m

228

128

*

2022

2023

New renewables coefficient

1.06

1.03

1.11

1.12

1.00

0.98

0.93

long-term

0.82

average

2022 (0.96)

2023 (1.06)

Page 5

Q1

Q2

Q3

Q4

Expansion of new renewables generation (Wind & PV, without B2B, as of 31/12/2023)

Assets in operation:

798.3 MW Wind // 253.3 MWp PV

Assets in construction:

45.1 MW Wind // 64.4 MWp PV

Outlook M&A 2024:

  • Pannonia 10.2 MW Wind in operation (closing 01/24)
  • Paar 38.4 MW Wind in operation (expected closing Q2/24) +18 MW Wind in construction COD 2024 (closing @COD)

Target 2030:

Profitable expansion of 20-25% of total electricity generated through solar and onshore wind power projects

In operation/ in construction / target 2030:

380.0 MW / 45.1 MW / 425.1 MW

249.9 MWp / 49.5 MWp / 1,698 MWp

EBITDA 2023: €108.4m

Historic CAPEX¹: €60.4m

CAPEX until 2030²: €966.6m

In operation/ in construction / target 2030:

86.1 MW / - / 163.3 MW³

EBITDA 2023: €41.1m

Historic CAPEX¹: €1.6m

- /- / 381.6 MWp

CAPEX until 2030²: €349.5m

Kavsakbendi - 413 MW GDK

In operation/ in construction / target 2030:

106.0 MW / - / 163.4 MW⁴

3.4 MWp / 4.9 MWp / 78.1 MWp

EBITDA 2023: €7.6m

Historic CAPEX¹: €102.8m

CAPEX until 2030²: €154.5m

In operation/ in construction / target 2030:

226.2 MW / - / 459.2 MW

- /- / 129.0 MWp EBITDA 2023: €70.7m Historic CAPEX¹: €364.8m CAPEX until 2030²: €399.9m

In operation/ in construction / target 2030:

In operation/ in construction / target 2030:

- /- / 72.6 MW

EBITDA 2023: €0m

- /- / - MW

EBITDA 2023: €0m

Historic CAPEX¹: €0m

- / 10.0 / 250.0 MWp

Historic CAPEX¹: €0m

- /- / 47.4 MWp

CAPEX until 2030²: €121.1m

CAPEX until 2030²: €215.2m

Page 6

¹ as of 31.12.2023, excl. M&A // ² excl. M&A, excl. historic CAPEX // ³ excl. project Paar // ⁴ excl. project Pannonia

Sales segment

Facts and figures

  • The lower EBITDA is due, among other things, to higher procurement prices for electricity and gas as well as a weaker result from the valuation of energy derivatives in connection with future energy supplies.
  • Flexibility products decreased by €36.0m
  • 491,000 end customers

Current information

  • Focus on
    • Batteries
      • Commissioning of three battery projects with a capacity of 44 MW in Germany in 2023
      • Total capacity: 110 MW
    • E-Mobility
  • Measures to compensate price increases for end customers

EBITDA/ €m

242

-197

2022

2023

The Sales segment comprises

  • Trading
  • Sales activities and
  • Energy services

Page 7

All other segments

Facts and figures

  • Reduced utilisation of CCGT Mellach / Lower district heating generation
  • Higher sales prices
  • Negative effects from the valuation of energy derivatives in connection with future energy supplies
  • Thermal Power: 677 GWh (-46.4%)
    • CCGT Mellach: 673 GWh
  • Flexibility products decreased by €18.5m

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

186

90

*

2022

2023

KELAG contribution to financial result / €m

78

4

2022

2023

Page 8

Grid segment

EBITDA Grid segment 2023: €579m (2022: €298m)

Local GAAP: stable earnings (differences compensated by reg. account)

IFRS: volatile earnings (no regulatory account)

Contribution from APG in 2023 (IFRS): €372m EBITDA

APG WACC for regulatory period 2024 (nominal pre-tax)

  • 4.16% for old assets with commissioning date up to 2022
  • 4.88% for new assets with commissioning date in 2023
  • 6.33% for new assets with commissioning date in 2024
  • Expected WACC for 2024 in total: approx. 4.5%
  • Yearly update of WACC for new assets for each tariff setting process until 2028

Contribution from GCA in 2023 (IFRS)

  • €207m 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, 6.33% for new assets; WACC for new assets to be reviewed annually

APG EBITDA/ €m

RAB 2023: €2,600m

RAB 2024: €2,834m

372

Approx.

198

220

2022

2023

Guidance APG *

2024E

GCA EBITDA/ €m

RAB 2023: €648m

RAB 2024: €641m

207

100

Approx.

60

2022

2023

Guidance GCA

Page 9

2024E

Non-recurring effects

€m

Detail

2023

2022

EBITDA

Total

0

0

Impairments

Spanish renewable assets, CCGT Mellach, GCA

-483

-198

Reversal of impairments

Spanish renewable assets

31

126

Operating result

Total

-452-72

Other financial result

Impairments

Reversal of impairments

Measurement of an obligation to return an interest (DKJ), TAG PPR

HalloSonne GmbH

TAG, HPP Ashta

119

-16-46

270

Financial result

Total

22

-37

Taxes

Effects due to the non-recurring effects above

70

49

Minorities

Effects due to the non-recurring effects above

11

22

Group result

Total

-350

-38

Page 10

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Verbund AG published this content on 14 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2024 07:21:45 UTC.