Slides
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group strategy 2035 Amber Grid
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TABLE OF CONTENT 1. Amber Grid in brief 2. Strategic context 3. Mission and commitments 4. Strategic framework and strategic pursuits 5. Key enablers 6. Strategic roadmap & KPIs 7. Financial outlook 8. Value for Lithuania
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LEGAL DISCLAMER The statements and indicators outlined in this document are expectations for the future. The information provided is based on the current knowledge, expectations, and assumptions of the "EPSO-G" group of companies (hereinafter – the Group), including Amber Grid, regarding future events and trends that may affect Amber Grid operations. Forward-looking statements include information about Amber Grid expected performance, business strategies, contractual relationships, competitive environment, operating conditions, potential growth opportunities, future regulatory impacts, competitive effects, and similar matters. Although Amber Grid believes the estimates and forecasts presented are reasonable, there are risks, uncertainties, and other significant factors beyond the Company control. These could cause actual results or achievements to differ substantially from those planned. The realization of the goals set forth in this document may be influenced by changing legal requirements, cost-benefit analyses, and other research findings. Investment volumes and financial forecasts have been calculated based on the information currently available to Amber Grid future decision-making may change in response to external circumstances beyond the control of the Amber Grid. The strategy is reviewed annually and updated as needed. Amber Grid, its officers and employees are not liable for any damage incurred through the use of this document or its content. Amber Grid is not obligated to update or revise any forward-looking statements due to new information, future events, or other circumstances, except as required by law.
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WE ARE CREATING THE FUTURE OF LITHUANIAN ENERGY We are participants of global energy changes. Global energy trends are changing rapidly, and energy transformation is gaining momentum in Lithuania. The National Energy Independence Strategy outlines a clear direction - to provide ourselves with energy resources, develop high- value exports, ensure energy security, a climate-neutral economy, so that energy changes reach all consumers. Amber Grid sees itself as a reliable partner on this path of change, creating a hydrogen network, a carbon dioxide ecosystem, further actively developing green gas connection to the transmission network, developing markets and strengthening relationships with existing and future customers. Looking to the future, we must also take care of the present. We can see that for more than a decade gas will be an important energy resource both to the Lithuanian market and to a regional and European scale. Well-developed infrastructure and international flows oblige us as strategic partners to take care of our customers, the gas transmission system, its security, anticipate possible threats, protect and educate communities living close to gas networks. In the updated Amber Grid strategy, together with the companies of the EPSO-G group, we have refined the common mission of the group - to accelerate energy independence and enhance system security, the vision - to enable the transformation of the energy industry while simultaneously safeguarding national security interests. In order to achieve our goals, we defined the main directions - to drive future infrastructure, to provide reliability and security, to be vital and skilled strategic partner. We use a variety of enablers to achieve strategic change and goals: financing, innovation and digitization, partnerships, asset development and management, and improving supply chains and procurement. We are already preparing for changes in the energy system - we would not be able to implement them without the basis of our organization and the main enablers - our people. We are already educating employees to develop new infrastructure, we are raising competences of green energy technologies, we are cooperating with international partners in creating a common European hydrogen network, and we are participating in energy initiatives. We believe that by joining forces with our partners, the Group's companies, we will successfully develop a dynamic energy sector, contributing to the creation of economic benefits for our country and Europe.
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01 AMBER GRID IN BRIEF Amber Grid
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Our people OUR CORE BUSINESS Transmission infrastructure We deliver and manage critical infrastructure to enable secure and sustainable energy Market development We facilitate market conditions through creation infrastructure interconnections and transparent rules for market functioning System operation We ensure safe and reliable operation of an integrated energy system Guarantees of origin We facilitate favorable conditions for the development of gas produced from RES Electricity network construction and maintenance Project management and investment Biomass and timber exchange Minority shareholder of natural gas exchange Minority shareholder of Nord Pool power exchange TSO Holding WE ARE PART OF THE STATE-OWNED ENERGY TRANSMISSION AND EXCHANGE GROUP EPSO-G Lithuania's electricity TSO Lithuania‘s gas TSO Energy storage system operator IS ESSENTIAL FOR THE ENERGY TRANSITION AND SECURITY OF SUPPLY Key figures in 2023 345 employees 82 M Eur revenues 25 M Eur EBITDA1 9 M Eur adj. net profit1 15 TWh transported for domestic needs 46 TWh transported to adjacent systems 1 Regulated revenue, expenses and profitability indicators are recalculated due to temporary regulatory deviations from the regulated profitability indicator approved by the Council, revaluation of non-current assets and other gain/loss from non-ordinary activities. Ensure energy security of Lithuania Ensure integrated and efficient management of operations Enable implementation of Lithuania's and the European Union‘s sustainable energy strategies WE ARE THE OPERATOR OF THE LITHUANIAN NATURAL GAS TRANSMISSION SYSTEM, RESPONSIBLE FOR THE TRANSMISSION OF NATURAL GAS TO CONSUMERS, OPERATION, MAINTENANCE AND DEVELOPMENT OF THE INFRASTRUCTURE.
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GIPL - 2022 The gas pipeline between Lithuania and Poland ELLI - 2022 The Enhancement of Latvia- Lithuania interconnection SOLID TRACK RECORD IN EXECUTING LARGE PROJECTS We aim to strengthen the gas transmission system. Over the past years, we implemented important strategic projects for the country and the region. In this way, we ensure the security of the country, reliable gas transmission to both Lithuania and the Baltic region. Using EU support, we applied innovative solutions in the gas system and modernized it. Klaipėda-Kuršėnai 2015 The gas pipeline for enabling diversification of gas sources for Baltics 21 project 2016-2023 of system reconstruction and modernization co-financed from ERDF We implement national sustainability, independence and security goals SOLID COMMITMENT TO SUSTAINABILITY in enabling a climate-neutral energy transition and creating a progressive and sustainable organisation ACCELERATING RENEWABLE ENERGY by providing clear conditions and processes for biomethane producers to access the system and participate in the RES market INTERCONNECTING ENERGY SYSTEM integrated with EU gas markets CREATING ENERGY EXCHANGES scaled-up in the region with gas exchange WE HAVE ENABLED A SUSTAINABLE AND EFFECTIVE ENERGY EXCHANGE AND SECURED SOLID GROUND FOR THE ENERGY TRANSFORMATION
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02 STRATEGIC CONTEXT Amber Grid
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Interconectors CO2 network Hydrogen network H2 CO2 Energy hub Long duration energy storage THE ENERGY TRANSFORMATION OF THE BALTIC STATES LAYS THE FOUNDATION FOR INTEGRATED GROWTH IN GREEN ENERGY AND INDUSTRY Annual new wind and solar capacity installation per capita in selected European countries from start 2020 to end 2023 (kW/cap)* ESTONIA 0 0.40.30.20.1 LITHUANIA 0 0.40.30.20.1 SWEDEN 0.40.30.20.10 FINLAND 0 0.40.30.20.1 DENMARK 0 0.40.30.20.1 POLAND 0.40.30.20.10 LATVIA 0.40.30.20.10 GERMANY 0.40.30.20.10 NETHERLANDS 0 0.40.30.20.1 ITALY 0 0.40.30.20.1 SPAIN 0 0.40.30.20.1 FRANCE 0.40.30.20.10 PORTUGAL 0 0.40.30.20.1 x13 2020–2023 m. Regional trends • The Baltic region is currently the leader in Europe for Renewable Energy Sources (RES) capacity additions per capita • The greatest concerns are threats to regional security, supply chain issues, and volatile commodity prices, but these are offset by a stable policy promoting RES • Regional cross-border integration, new transmission infrastructure, growth of demand via electrification and flexibility resources are needed to maintain development of RES and zero-carbon technologies Source: ENTSO-E Transparency Platform; PCI-PMI Transparency platform; Lithuania Energy System Transformation to 2050 study, LITGRID (for Lithuania only), and other sources. *Note: data takes the first day of the year. Lithuania 2020: additional 72 MW, 2,809,977 population. Lithuania 2023: additional 934 MW, 2,857,279 population. Baltic sea region has significant potential for the development of RES and environmentally friendly technologies
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Group Strategy 10 COMPLEX GLOBAL DYNAMICS ARE SHAPING OUR ENVIRONMENT Geopolitical tensions put pressure on energy security and supply chains Climate actions are increasing in ambition and broadening in scope Low carbon and digital technologies stimulate investment, jobs and decarbonization Energy transformation focuses on the development of energy security, networks, cross-sectoral integration and flexibility.
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The aim is for RES capacities to grow rapidly, and for demand and energy exports to increase. Lithuania’s goal is to transition from fossil methane to green gases. The expansion of RES requires greater system flexibility, utilizing intersystem connections and other cross-sectoral flexibility measures. To become a country that produces energy for its own needs and exports it by 2050, creating a climate-neutral and high value-added energy industry. An ambitious national strategy Lithuanian electricity demand and supply outlook, TWh x6 2000 2010 2020 2030 2040 2050 Import Export Local production 24 48 74 13 Demand Lithuanian methane and green gases demand outlook, TWh Full shift 2023 2030 2040 2050 15 ~23 ~29 ~25 Natural gas Biomethane H2 and H2 derivatives LITHUANIA HAS APPROVED ITS NATIONAL ENERGY INDEPENDENCE STRATEGY CO2 collection potential in Lithuania, M t/y 2.4 1.0 0.2 3.5 3.5 2030 2040 2050 From fossil fuels CO2 Biogeninės kilmės CO2 3 5 8.8 12.61.3 4 6.5 2023 2030 2040 2050 Other flexible resourses P2G 3 Lithuanian flexible resources (excl. interconnections), GW x6,5 6 13 19 Value for environment
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03 MISSION AND COMMITMENTS Amber Grid
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OUR PURPOSE To power a confident and green future in an ever- changing world OUR VISION To enable the transformation of the energy industry while simultaneously safeguarding national security interests OUR MISSION To accelerate energy independence and enhance system security
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OUR THREE FUNDAMENTAL COMMITMENTS DRIVER OF TOMORROW‘S INFRASTRUCTURE We see the transformation of the energy sector as a fundamental change. Our goal is to provide the infrastructure upon which the net-zero energy system will be based1 We aim to enhance security and reliability within and beyond the energy sector, strengthening system flexibility and national security. Our work is essential for a reliable future 2 PROVIDER OF SECURITY AND RELIABILITY VITAL AND SKILLED STRATEGIC PARTNER Energy transformation requires a systemic and close cooperation of various industry peers, investors and governments. Our goal is to be a vital partner in developing low- carbon infrastructure and markets.3
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CLIMATE HEALTH ANDSAFETY GOVERANCE <?xml version="1.0" encoding="UTF-8"?><svgid="Icons"xmlns="http://www.w3.org/2000/svg" viewBox="0 0 52.101 70.912"> <defs> <style> .cls-1 { fill: none; stroke: #414042; stroke-linecap: round; stroke-linejoin: round; stroke-width: 2px; } </style> </defs> <g> <g> <path class="cls-1" d="M20.134,17.437c-2.925,1.191-5.956.537-7.396-3.001s-2.165-12.104.76-13.295"/> <path class="cls-1" d="M20.134,17.437c2.925-1.191,4.636-3.777,3.196-7.314C21.889,6.586,16.423-.05,13.498,1.141"/> </g> <polyline class="cls-1" points="21.39120.527 20.13317.43915.4185.857"/> <lineclass="cls-1" x1="11.743" y1="10.436"x2="18.362"y2="13.224"/> </g> <g> <g> <pathclass="cls-1"d="M 30.087,14.604c-2.374-1-3.744-3.125-2.535-5.996S33.284.379,35.658,1.379"/> <path class="cls-1"d="M 30.087,14.604c2.374,1,4.852.496,6.061-2.375s1.883-9.85-.49-10.85"/> </g> <line class="cls-1"x1="33.676"y1="6.084"x2="27.855"y2="20.436"/> <line class="cls-1"x1="29.286"y1="5.727"x2="31.495"y2="11.152"/> </g> <g> <path class="cls-1"d="M 37.321,23.152c-3.28-1.61-6.97-2.52-10.87-2.52-2.67,0-5.25.42-7.66,1.21-8.9,2.73-15.65,10.38-17.05,19.78v.01c-.18,1.19-.27,2.4-.27,3.64,0,10.94,7.18,20.21,17.08,23.35.11.03.21.07.32.1,2.39.77,4.93,1.19,7.58,1.19,13.61,0,24.65-11.04,24.65-24.64,0-2.23-.31-4.4-.86-6.45-.08-.32-.18-.64-.28-.96"/> <pathclass="cls-1"d="M44.391,28.392c-.34-.15-.68-.28-1.03-.41"/><pathclass="cls-1"d="M49.961,37.862c-.11.33-.23.65-.35.97-.19.48-.4.95-.6,1.42l-.06.14c-.97,2.07-2.4,4.13-3.47,6.82-.91,2.3-1.58,5.25-2.61,7.63-1.84,4.18-4.51,6.73-8.73,2.61-2.58-2.38-4.88-5.38-6.79-8.29-4.75-6.83,1.35-8.32,3.1-13.94.65-2.23-.7-5.34,1.25-6.8,1.63-1.16,3.73-1.41,5.75-1.46,1.86-.04,3.92.3,5.85,1h.01c.02.01.03.01.05.02.73.27,1.36.73,1.86,1.32.11.13.22.26.32.39,1.95,2.39,3.47,5.16,4.42,8.17Z"/> <pathclass="cls-1"d="M10.706,27.014c1.73.754,3.529,1.351,5.141,2.327,2.084,1.357,3.549,3.676,3.992,5.965.04,1.401-1.081,2.229-2.006,3.263-.897.926-1.83,1.213-2.755,1.423-1.89.428-3.361,1.91-3.752,3.808l-1.024,4.978s-4.085.447-6.064-2.617-2.497-4.543-2.497-4.543"/> <path class="cls-1"d="M 20.49,59.543c.204-.034-1.366-.759-1.351-2.076.345-5.805,2.206-11.776-4.39-8.372,0,0-3.266,3.415-5.915,3.128s-2.681,1.883-1.404,4.085,4.796,5.221,6.443,5.894c3.642,1.488,7.908,2.062,8.834,2.508s-2.217-5.168-2.217-5.168"/> </g> <polylineclass="cls-1"points="32.66424.54337.31623.15335.72818.321"/></svg> Net zero by 2050 No net loss of biodiversity Empowered people and positive impact on communities Transparency, responsible governance and supply chain management and sustainable finance Creating a positive culture and a safe environment free from accidents WE ADHERE TO GOVERNANCE PRINCIPLES ORIENTED TOWARDS A SUSTAINABLE FUTURE PEOPLEAND COMMUNITIES ENVIRONMENT Our business strategy directly targets 7 UN SDGs while contributing to all the others
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BUILDING A STRONGER ORGANISATION FOR OUR PEOPLE We are targeting: Building a unified Group culture and identity To be an employer of choice for employees Ensure development and growth of our people Focusing on a unified group culture, identity and people growth We develop capabilities to enable the energy transformation. We refine our work environment and processes and interact with education institutions ORGANISATIONAL CAPABILITY AND SUSTAINABILITY Identification and application of future competences, reskilling employees and ensuring succession Matrix leadership focused development Promote energy profession Creating new tools to attract and maintain workforce Data-driven decisions in employment relations We rely on our ability to constantly learn for the Group and its people to flourish. We will focus on creating opportunities to further develop talents and leadership skills LEADERSHIP AND TALENT GROWTH Attracting, developing, and retaining talent Focused development of professionals, attracting competences internationally Empowering the personal leadership of team members Ensure transparency, diversity and engagement
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04 STRATEGIC FRAMEWORK AND STRATEGIC PURSUITS Amber Grid
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OUR STRATEGIC FRAMEWORK Commitm ent HYDROGEN NETWORK CO2 NETWORK AND ECOSYSTEM TRANSMISSION SYSTEM TRANSFORMATION AND OPTIMISATION CRITICAL INFRASTRUCTURE RESILIENCE AND NATIONAL SECURITY RES CONNECTION AND INTEGRATION CUSTOMER-CENTRIC ORGANISATION ENERGY MARKET DEVELOPMENT Strategic pursuits VITAL ANDSKILLEDSTRATEGIC PARTNERS DROVER OFTOM PRROW ’SINFRASTRUCTURE Com m itm ent Commitment PROVIDER OF SECUITY AND RELIABILITY MISSION to accelerate energy independence and enhance system security PURPOSE to power a confident and green future in an ever-changing world VISION to enable the transformation of the energy industry while simultaneously safeguarding national security interests ENABLERS
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Transmission system transformation and optimisation Carbon dioxide network and ecosystem Hydrogen network DRIVER OF TOMORROW’S INFRASTRUCTURE OBJECTIVE to adapt and build the infrastructure upon which the future of energy will be based1 We see the transformation of the energy sector as a fundamental change We support increasing connectivity across existing and new energy vectors We are leading the way for successful integration of the new energy vectors like hydrogen (H2), carbon dioxide (CO2) and synthetic green gases
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LITHUANIAN ENERGY STRATEGY 2050 CO2 CO2 CO2 network and ecosystem ≥ 1,6 Mton CO2 CO2 transmission capacity for CCS project in the Baltics H2 We are preparing for the transformation of the gas system to ensure its future-proofing, safety and reliability. We will assess technical infrastructure changes and initiate changes and explore opportunities to adapt the gas network to other alternatives. We are creating a hydrogen transportation infrastructure that will stimulate the development of the Lithuanian hydrogen ecosystem. The Lithuanian hydrogen network is very important in creating conditions for hydrogen transit along the Nordic- Baltic corridor. We are exploring the possibilities of creating a CO2 network for the development of a climate- neutral and high-value- added ecosystem and industry. ≥ 65 TWh Demand for gas transmission ≥ 24 TWh Green H2 production ≥ 9 TWh Green H2 derivatives Implementing the energy transformation requires the creation of new transmission networks, transformation and optimisation of the gas transmission system Hydrogen network ≥ 100 TWh H2 transmission network capacity in Nordic-Baltic hydrogen corridor H2 Gas transmission networks Potential investments until 2035 3.3 B EUR We promote greater system interoperability and the integration of existing and new energy vectors CH4 ≥ 65 TWh Demand projection for trasnsmission CH4
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PROVIDER SECURITY AND RELIABILITY Our activities are integral to ensuring a reliable future We are creating a more resilient and flexible energy system We are taking additional actions within and beyond our operations to strengthen national security OBJECTIVE enhance security and reliability within and beyond the energy sector, strengthening system flexibility and national security2 Critical infrastructure resilience and national security
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• We strengthen physical security by installing drone protection systems, ensuring contingency reserves and the presence of personnel and equipment • We strengthen cybersecurity by ensuring the latest digital security measures for critical transmission network assets, implementing advanced cybersecurity programs, and continuously educating employees and partners • By reorganising critical sections of the main gas pipeline, paying attention to determining the depth of gas pipelines and their deepening, we strengthen the safety and reliability of the transmission system • By consistently maintaining gas pipelines, monitoring gas parameters in the transmission system, organising emergency exercises, improving the emergency management plan, and cooperating with transmission operators in neighboring countries, distribution and LNG terminal operators, we ensure the security of the gas transmission system. PROVIDER OF SECURITY AND RELIABILITY We strengthen the safety of our assets against physical and cyber threats, and act as a strategic partner for national security initiatives Cyber & physical security Energy system National security Partnerships & projects Safeguarding resilience of critical infrastructure and national security We are increasing safety and reliability in the energy sector and beyond, strengthening system resilience and national security • Ensuring that residents, businesses and people's property near gas pipelines remain safe even in the event of a minor accident, we are conducting information campaigns to increase their awareness of gas pipeline protection zones, safety-enhancing area classes, and applicable building codes. We hope that this knowledge will encourage the public to plan their activities near gas pipelines more carefully
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VITAL AND SKILLED STRATEGIC PARTNER OBJECTIVE Be a vital partner in developing low-carbon infrastructure and markets3 Energy transition requires a systemic and close cooperation of various industry peers, investors and governments We will foster close cooperation to unlock the potential of renewables both at home and in the Baltic Sea region We will enhance synergy and integration of different business sectors Customer- centric organisation Energy market development RES connection & integration
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RENEWABLE ENERGY CONNECTION & INTEGRATION We connect biomethane producers to existing networks, accelerating the development of renewable energy in Lithuania. The integration of biomethane into the overall energy system is now one of the main energy goals of European countries, and for Amber Grid‘s customers it is a key future development opportunity CUSTOMER-CENTRIC ORGANISATION ENERGY MARKET DEVELOPMENT We focus on strengthening approach to our customer and developing future customer service competence, and we strive to ensure a reliable partnership for all current and future customers on the path of energy transformation When evaluating existing services and the ongoing energy transformation, new infrastructure development initiatives, we must be ready to respond to changing customer expectations. Therefore, we constantly study customer experience and accordingly set priorities that meet expectations We aim to create transparent rules for the functioning of the H2 market and offer new opportunities to renewable gas market participants. We will analyse opportunities to contribute to the development of the CO2 market. We are creating an opportunity for customers to exchange guarantees of origin for renewable gas (biomethane, hydrogen) in Europe, for which purpose we are organising the connection of the Lithuanian Register of Guarantees of Origin for Renewable Gas to the European Guarantees of Origin Schemes (AIB and ERGaR schemes). The Lithuanian Register of guarantees of origin for RES gas connection to European schemes (2025-2026) Transparent and non-discriminatory new markets functioning models and rules created Customer experience evaluation (GCSI) ≥80 Biomethane production (2040) 3.4 TWh
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05 KEY ENABLERS Amber Grid
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CULTURE & CAPABILITIES Our success is driven by expertise, continuous learning and the ability to act in a constantly changing environment Lithuania's energy future is driven by our people with unified values Open Reliable Responsible AREAS DRIVING BUSINESS GROWTH Renewables Carbon dioxide transportation, storage & utilisation Hydrogen and its products integration and/or transportation Power to X technologies CO2 H2 Our team will grow by around by bringing in Lithuanian and international talent 30%
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OUR KEY ENABLERS 27 To achieve our goals, we are developing a range of enablers to accelerate the attainment of results Diversified funding base Strong relationships with capital providers Prioritisation of investments that have the highest return and impact FINANCING1 SUPPLY CHAIN & PROCUREMENT3 Diverse range of suppliers Leveraging collective buying power Utilising a wide range of procurement platforms PARTNERSHIPS2 With other companies in the energy and other sectors With local and EU regulation institutions and organisations With academic organisations Advanced project management Digital asset management tools Proactively managing portfolio-level risks ASSET DELIVERY & MANAGEMENT4 INNOVATION & DIGITALISATION5 Cutting-edge technologies for value creation From 'big data' to 'smart data' Digital literacy & Culture to exploit opportunities
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06 STRATEGIC ROADMAP AND KPIs Amber Grid
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-50 % GHG gas emission (Scope 1 and 2) reduction by 2030, reaching net-zero by 2050 SOCIETY THRIVES IN A SUSTAINABLE ECONOMY1 Ensured safety of people 0 accidents for those living near gas infrastructure CLIENTS EXPERIENCE SEAMLESS AND HIGH QUALITY SERVICES2 0 unplanned gas interruptions Uninterrupted gas transmission and fast fault recovery ≥ 80 points Global Customer Satisfaction Index (GCSI) as a leading companies rating scores OUR PEOPLE ARE EMPOWERED3 Safe, positive, and accident free workspace and culture 0 severe and fatal accidents for employees and contractors ≥ 70 % employee engagement rate maintained Top Employer certificate ≥ 87 M EUR adjusted EBITDA Hight single digit average adjusted ROE 90–110 % Execution of the CAPEX plan FOUNDERS AND INVESTORS UNLOCK NEW POSSIBILITIES AND REAP THE REWARDS4 PARTNERS COLLABORATE FOR SUCCESS5 ~2,4 TWh of RES gases injected into the gas grid in 2035, compared to 0.05 TWh in 2023 ≥ 26 TWh/year H2 International transmission capacity in 2035, reaching 100 TWh/ year by 2050 ≥ 1,6 Mt CO2 International transmission capacity for CO2 captured by cement producers by 2035 H2 DESCRIBING 2035 SUCCESS: VALUE PROPOSITION FOR OUR STAKEHOLDERS We are creating a sustainable and reliable future in an ever-changing world
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OUR ROADMAP DELINEATES THREE DISTINCT TIME HORIZONS, EACH WITH UNIQUE OUTCOMES BUILT ON THE SUCCESSES OF ITS PREDECESSORS CREATING ENERGY SELF- SUFFICIENCY Now – 2029 A fully developed system of guarantees of origin that meets the needs of customers. Preparatory works are completed ensuring the active phase of hydrogen activity 1 EXPANDING INTO NEW ENERGIES 2030 – 2035 Hydrogen economy is kicked-off, allowing further renewable expansion and first steps for major shift from fossil fuels SCALING OUR ACTIVITIES 2036 – 2050+ The region's connected for existing and new energy exchanges, Lithuania becomes an exporter of power and low carbon energy products 32 • Implementation of preparatory actions related to hydrogen (H2) and carbon dioxide (CO2) transportation networks • Initiation of gas network optimisation, considering gas consumption, transmission volumes, and infrastructure safety • Creation of market operation models and rules to enable the functioning of H2 market • Development and implementation of strategic partnerships to maintain national security • The Lithuanian origin guarantees registry for renewable gas is connected to European schemes • Alignment of near-term GHG reduction targets with the SBTi methodology • For the first time in Lithuania, green H2 demand and supply points have been connected through the transmission network. Creation of a regional green H2 corridor from Finland to Germany (through Estonia, Latvia, Lithuania, and Poland) • Objects that cannot be decarbonised due to the nature of their activities are connected to the CO2 transportation network • The gas network is being restructured and optimised • The H2 market operates efficiently based on created market operation models and transparent rules • By 2035, at least 50% of suppliers will have set GHG targets • Fully developed hydrogen network to meet regional market needs • CO2 network developed in response to market demand • Achieving net-zero GHG emissions by 2050 • By 2050, the restructured gas transmission network will meet the needs for transporting green gases and other products
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07 FINANCIAL OUTLOOK Amber Grid
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*3.3 B Eur total CAPEX 2024-2035 Existing activities (12%) H2 transmission network EU and international funds financing intensity Intensity of local (national) financing Gas network CO2 transmission network Resilience OUR CAPEX INVESTMENT GOAL Newly planned activities (88%) We focus mainly on the renewal and expansion of the existing infrastructure network, as well as the creation of new transmission infrastructure Planned distribution of investments by existing and planned activities until 2035, B EUR PROFITABILITY We will maintain the Company’s profitability for the shareholders NET DEBT/ ADJUSTED EBITDA Long-term perspective ≤6, however during implementation of new H2 transmission network leverage ratio will be higher than 6. The ratio of existing activities all time ≤6 1 10 Net debt/ adjusted EBITDA Long-term ratio 2023 2035Average adjusted ROE High single-digit ≤6 Investments to be financed through multiple funding sources, such as: Maximize EU & external funding Introduce Partnerships Optimization of debt and equity * CAPEX projections based on the latest best estimate.
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08 VALUE FOR LITHUANIA Amber Grid
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LET’S CREATE LITHUANIA’S ENERGY FUTURE TOGETHER! Transmission system and infrastructure Low energy bill Energy independence New jobs RES production Clean air Foreign direct investment Demand GDP growth Competitive price Flexibility Energy surplus Significant benefits for Lithuania's environment and economy by 2050 By working alongside, we can unlock significant benefits of energy transformation to Lithuania‘s environment and economy by 2050 As part of the Group, Amber Grid significantly contributes to the vision that brings benefits to Lithuania Up to 10 % growth of labour market 1.4 B EUR avoided costs on EU Carbon Permits 6 B EUR avoided energy import costs Up to 6.3 B EUR due to positive impact on employment and economy Up to 1 B EUR due to lower electricity wholesale price
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GLOSSARY Acronym Definition Acronym Definition AIB Association of Issuing Bodies LT Lithuania B Billion Mton Millions of tonnes CAPEX Capital expenditure MW / MWh Megawatt / Megawatt hour CCS Carbon capture & storage P2G Power to gas CCUS Carbon capture, usage & storage ROE Return on equity CO2 Carbon dioxide RES Renewable energy sources EBITDA Earnings before interest, tax, depreciation, and amortisation Scope 1 emissions The Group's direct GHG emissions that are directly controlled by the organization ERGaR European Renewable Gas Registry Scope 2 emissions The Group's indirect GHG emissions from uncontrolled sources, which result from the Group's consumption of externally sourced electricity and heat ESG Environmental, social, and corporate governance Scope 3 emissions Other indirect GHG emissions during the Group's operations (in the supply chain) from sources not owned or controlled by the Group (such as purchased goods and services, transportation, waste, etc.) EU European Union SBTi Science based targets initatives EUR Euro TSO Transmission system operator GCSI Global customer satisfaction index TW / TWh Terawatt / Terawatt hour GDP Gross domestic product UN SDG UN Sustainable development goals GHG Green-house gases GW / GWh Gigawatt / Gigawatt hour
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#NewEnergy Amber Grid