...March 5, 2024 We consider MVM's strategic investment plan as ambitious. The group has confirmed its strategy to become a leading integrated utility in Central and Eastern Europe with the objective of generating at least 25% of EBITDA outside Hungary by 2035. The company's strategic focus remains the transition of its generation portfolio to more renewable energy sources, and away from its currently high share of nonrenewable generation technologies. MVM plans to materially expand its renewable portfolio by adding about 3.0 gigawatts (GW) of capacity, 80% from solar and around 17% from wind. We consider these renewable technologies as mature, limiting operational risk. At the same time, the company has affirmed its ambition to completely phase out coal by 2030. We forecast that the company's net capital expenditure (net capex) will increase to about Hungarian forint (HUF) 350 billion in 2024 and HUF480 billion in 2025 from around HUF335 billion in 2023. MVM's strong financial and operational...
