AB “Ignitis grupė” Strategic Plan 2024-2027: envisions a two-fold increase in green capacitiesAB “Ignitis grupė” (hereinafter – the Group) publishes its Strategic Plan 2024–2027, which is attached to this notice. The Group remains focused on its ambitious strategy execution with a purpose to create a 100% green and secure energy ecosystem. This includes expanding Group’s Green Capacities Portfolio and growing Investments to deliver 4–5 GW of Installed Capacity by 2030, thus strengthening its contribution to Europe's decarbonisation and energy security in the region. As a renewables-focused integrated utility, we focus on green generation and green flexibility technologies, including onshore and offshore wind, battery energy storage system (BESS), pumped-storage hydro and power-to-X. We utilise our integrated business model and benefit from the largest customer portfolio, energy storage facility, and network in the Baltics. To deliver on the ambitious goals in the Green Capacities and Networks segments, the Group plans to invest EUR 3.0–4.0 billion over the 2024–2027 period. This represents an increase of around EUR 1 billion compared to the previous strategic period, underscoring our commitment to a sustainable future. Highlights of the strategic plan We plan to double the Installed Green Capacities, reaching a total of 2.4–2.6 GW in 2027 compared to 1.3 GW in 2023. Currently, the Group’s Green Capacities Portfolio amounts to 7.4 GW, of which 2.9 GW is Secured Capacity. We aim building at least 2 offshore wind projects in the Baltics: one project in Lithuania (COD ~2030), and at least one more project in the Baltics (COD post 2030). We seek to reach at least 700 MW of onshore wind capacity installed by 2027 in the Baltics and Poland. We keep a focus on the development of green flexibility technologies: pumped-storage hydro expansion by 2026 (by adding 110 MW to the currently existing 900 MW); we are targeting to develop commercial-scale battery energy storage systems (BESS) by 2027 and implement a green hydrogen and e-fuel production pilot project. We strive to further expand our customer portfolio to enable the Green Capacities build-out. Our growing customer portfolio and focus on green electricity supply should lead to a significant increase in the amount of supplied electricity by the Group, from 6.7 TWh in 2023 to 9.0–11.0 TWh by 2027. We plan to connect the growing number of new customers to the distribution network and to expand the capacity of electricity distribution network in order to enable a green transition and to meet growing demand related to electrification. The Group is building a leading EV public charging network in the Baltics. We aim to expand across public, commercial, and home charging segments and focus on developing EV fast-charging network while being the first-choice charging solutions provider for the home and business customers. To accelerate the green electrification in the Baltics and Poland, the Group is expanding its renewable organisation and is expecting to increase the number of employees at Ignitis Renewables 3.5 times by 2027. Financial targets In 2024–2027, we plan to invest EUR 3.0-4.0 billion with over 85–90% of the investments to be aligned with the EU Taxonomy. We plan to direct EUR 1.8–2.4 billion (around 61% of the Investments) to further develop green generation and green flexibility technologies and double the installed Green Capacities. More than half of the Green Capacities Investments over the 2024–2027 period relate to new Installed Green Capacities additions after 2027. We are planning to direct EUR 1.1–1.3 billion or one third of our Investments towards the expansion of a resilient and efficient electricity distribution network, which is one of key elements of a successful energy transition. We are expecting the Group’s Adjusted EBITDA in 2027 to be within the range of EUR 550–650 million compared to EUR 484.7 million in 2023. The average Adjusted ROCE is projected to reach 6.5–7.5% in 2024–2027.
We expect to maintain our credit rating of ‘BBB’ and above over the 2024–2027 period. We will continue our investment programme while maintaining net debt to EBITDA below 5 times. We are committed to a at least 3% annual dividend growth, representing a 7.3–8.0% implied dividend yield in the 2024–2027 period. Sustainability priorities and targets We aim to reach net zero emissions by 2040–2050 and expect over 85–90% of our total Investments to be aligned with the EU Taxonomy in the period 2024–2027. We aim to achieve the sustainable share of Adjusted EBITDA of at least 70–75% by 2027. We will maximise sustainable value by directing our Investments toward a decarbonisation pathway that is aligned with our business ambitions and reaching net zero emissions by 2040–2050. Our sustainability-related priority is reducing the carbon intensity of scope 1 & 2 GHG emissions (by ~20-40% in 2027 vs. 2023) by growing Installed Green Capacities and increasing the share of green electricity used for our operations. We strive to grow the share of green electricity we supply (over 30% by 2027 compared to 17% in 2023). We keep a strong strategic focus on occupational health and safety, employee experience, well-being, and diversity. Long-term performance objectives Following the Strategic Plan, the Supervisory Board of Ignitis Group approved the long-term objectives and performance targets for the 2024–2027 period that determine a long-term variable part of remuneration for key executives. Details of the Long-Term Incentive Plan objectives for the 2024–2027 period are available in the Strategic Plan’s annexes and on our website (link). The earnings call In relation to the announcement of the Strategic Plan 2024–2027 and 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/Ignitis3M2024resultsandstrategicplan2024-2027/ 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
Strategic Plan 2024–2027 is available on our website:
https://ignitisgrupe.lt/en/strategy For additional information, please contact: Communications Artūras Ketlerius
+370 620 76076
arturas.ketlerius@ignitis.lt Investor relations Ainė Riffel-Grinkevičienė
+370 643 14925
aine.riffel-grinkeviciene@ignitis.lt
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