1H22 Financial Performance slide image

1H22 Financial Performance

Portuguese macroeconomic environment Macroeconomic environment Impacts from the war in Ukraine are mostly indirect, through higher inflation and interest rates. Headline and core inflation rate (CPI, % YoY) • ⚫ Direct exposure of Portugal to Russia and Ukraine is small. In 2021, merchandise exports to Russia and Ukraine amounted to 0.3% and 0.06% of total, respectively. Merchandise imports from Russia were 1.3% of total (mainly gas and fertilisers). Direct investment is also not significant. ⚫ 83% of Portugal's gas is supplied by Africal and the US. More than 50% of electricity is generated by renewable energy sources. • Impacts of the war in Ukraine are being felt mainly through a rise in producer and consumer inflation and through shortages of materials and intermediate consumptions. • CPI inflation rose from 3.3% to 8.7% YoY in 1H 2022. Producer prices are up by 24.5% YoY. Energy and Food with major contributions to inflation in 1H 2022. 10 8 6 4 2 0 95 75 55 -5 novobanco Sources: INE, DDAE. Energy and food CPI Inflation, Portugal and Euro Area (CPI, % YoY) Euro Area Portugal 8.7 Total 6.0 38.3 24.0 Core 15.4 10.9 9.1 8.9 -2 2008 2010 2012 2014 2016 2018 2020 2022 Industrial producer price index (% YoY) 35 Headline 15 Energy Food Electricity generation by energy source (% of total, May 2022 YTD) Energy 58.0 Wind 30% 24.5 -25 2011 2013 2015 2017 2019 2021 Photovoltaic 6% Hydro 18% Thermal 46% Total 46 46
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