Group Strategy of the MVM Group. Summary Presentation

Transcription

1 Group Strategy of the MVM Group Summary Presentation

2 MVM Group as a vertically integrated group of companies is present across the energy value chain production transmission system operation trade infrastructure Trade Engineering and technical services Infocommunication MVM Paksi Atomerőmű Zrt. Vértesi Erőmű Zrt. MVM GTER Zrt. MVM MIFŰ Miskolci Fűtőerőmű Kft. MVM Észak-Budai Fűtőerőmű Kft. MVM Hungarowind Kft. MAVIR ZRt. Transmission network operation, system operation HUPX Magyar Szervezett Villamosenergiapiac Zrt. (MAVIR subsidiary) Power exchange Központi Okos Mérés Zrt. (MAVIR subsidiary) Smart network operator MVM Partner ZRt. wholesale trade and direct sales to consumers Magyar Földgáztároló Zrt. storage CEEGEX Közép- Kelet-Európai Szervezett Földgázpiac Zrt. (HUPX subsidiary) exchange Magyar Földgázkereskedő Zrt. wholesale trade and direct sale to consumers MVM OVIT Zrt. Production, constructionassembly, maintenance, development, general contracting MVM ERBE Zrt. Engineering services, general designing MVM NET Távközlési Szolgáltató Zrt. Telecommunications MVMI Zrt. IT 1

3 Goal 2 Goal 1 Mission The mid-term strategic goals system of the MVM Group Realize national economic policy goals MVM Group as a state-owned, vertically integrated energy company that play a significant role regionally, has the following mission: Realize energy policy goals along the National Energy Strategy Support additional economic policy goals Value-Creating and Sustainable Growth Increase national wealth in the energy sector Maintain domestic nuclear capacity Support safe energy supply Growth while sustaining credit standing Increasing Operational Efficiency Optimize business portfolio and organisational development Exploit synergies between business units Maintain business focus in operations Continuously ensure adequate human resources 2

4 MVM Group s primary task is to support the goals of National Energy Strategy Nuclear-based production Key goals of the National Energy Strategy Besides maintaining and improving nuclear safety, the use of nuclear energy to ensure security of supply, to improve competitiveness of the national economy and to support climate policy goals Participation of the MVM Group Maintain nuclear capacity with lifetime extension of Paks Nuclear Power Plant as well as with supporting preparation and realization of new nuclear power plant blocks Energy efficiency and energy saving Minimize energy losses and use energy more efficiently in all areas Support energy efficiency and energy-saving by renovation of low efficiency assets and by decreasing network losses as well as by supporting construction of the smart electricity supply Develop a regional infrastructure platform Cooperate with neighbouring countries to increase price stability, source and route diversification, security of supply as well as network regulation capacity Support realization of regional infrastructure platform by construction and commercial support of crossborder capacities, gas pipelines, and other gas infrastructure, as well as by taking part in the operation of the regional electricity and gas exchanges Renewable resources Increase the share of the renewable energy in the total energy consumption from 7% of 2010 to nearly 15% by 2020 Take part in expansion of renewable energy production 3

5 4 MVM Group s strategic goal system is in accordance with that of regional competitors Strategic directions Nuclear projects Renewable projects Power plant portfolio optimization Maintaining financial position CAPEX optimization Cost efficiency Strategic goal Not included in the goal system

6 External environment determines market opportunities of MVM Group Macroeconomic environment The Hungarian economy sets on a growing path again demand Expected growth of gross domestic electricity demand is approximately 1% in the long run demand Volume of Hungarian gas consumption continues to decrease in the short and mid run, mostly in the power plant and household segment capacity demand and supply In the next 1-2 years, if the import ratio is not intended to reduce, then it is not necessary to create new significant production capacities After 2020, the capacity demand determined by MAVIR will considerably exceed the builtin capacities supply Out of available gas sources, piped gas and, within that, Russian gas remains dominant in the supply to Hungary prices Base load wholesale electricity prices may decrease in the short run then increase to the current level Peak load prices are continuously approaching base load price level prices The decrease in demand for gas caused by greater energy efficiency as well as greater share of renewables creates tension between sourcing and sales prices 5

7 Major strengths and opportunities of the MVM Group have been identified Key strengths The nuclear power plant owned by MVM Group and the marketable electricity produced by it The greatest sourcing and sales electricity portfolio in Hungary Significant domestic gas importer role Considerable position in the gas infrastructure Possession of the largest domestically-owned energy manufacturing, construction and maintenance competencies and their recognition by the market Right to operate the governmental telecommunications backbone network Good business reputation and references Major opportunities Launch new power plant projects to meet domestic and regional capacity demand in the mid and long run Take part in building renewable and alternative energy production capacities Strengthen regional presence Expand in domestic electricity retail and in regional electricity trade markets Expand in Hungarian and regional gas market and better utilize gas storage opportunities Expand in domestic and foreign electricity-related construction and manufacturing market Increase sales of telecommunication and IT services Take part in creation of Smart Grid and Smart Metering systems 6

8 Increasing Operational Efficiency Value-Creating and Sustainable Growth In accordance with the group-level goals, all business areas set their main strategic goals production transmission system operation trade infrastructure trade Engineering and technical services Infocommunication Cross-businessarea directions Maintain and improve nuclear safety Support operational stability of electricity market Maintain nuclear capacity Prepare and implement value increasing projects that utilize renewable energy sources Take part in development of a single electricity market Actively support development of smart energy supply Pursue regionally expanding wholesale trade activity Retain significant retail trade position in the domestic free market Explore additional opportunities to achieve sourcing diversification Ensure competitiveness of sourcing portfolio Optimize trading activity in accordance with economic policy goals Assess opportunities for regional expansion Take part in investments aiming at sustaining nuclear capacity Implement energy sector investments Strengthen market position Diversify activity and presence Develop foreign market activity Become significant market player in telecommunications Identify and implement business development and acquisition opportunities Optimize production and explore opportunities to enhance performance in Paks Optimize portfolio Perform transmission system operation tasks at high standards Cost efficient management Increase flexibility of sourcing portfolio Efficiently execute natural gas infrastructure projects Develop and implement optimal storage strategy Develop optimal natural gas trading organization Satisfy the demands in the Group at high standards and in a cost efficient way Satisfy the demands in the Group in a cost efficient way Increase security level of ICT operations Increase internal efficiency Exploit synergies between business areas Optimize business portfolio and develop organisation 7