Romande Energie Holding SA · SIX:REHN
Romande Energie Holding SA — FY2023 Earnings Presentation
37 slides from Romande Energie Holding SA's earnings presentation, Apr 23, 2024
Slide 1: 2023 results
2023 results Investor meeting Lausanne, 23 April 2024
Slide 2: Summary
Summary 01 Introduction 02 Changes in legal and regulatory conditions 03 2023 highlights 04 Full-year results 05 Next events 2
Slide 3: Introduction
Introduction
Slide 4: Extraordinarily high profits
Extraordinarily high profits Outstanding operating performance • Driven by all three business units Combination of exceptional circumstances • Catch-up effect boosting energy supply margin • Strong profits from associates Resilient business model • Business diversification • Generation infrastructur
Slide 5: Changes in legal and regulatory conditions
Changes in legal and regulatory conditions
Slide 6: Mantelerlass
Mantelerlass* Objectives • speed up renewables rollout • consolidate security of supply • smooth progress towards ‘net zero by 2050’ Milestones • passed in autumn 2023 • implementing ordinances in consultation since 21 February 2024 • Referendum on 9 June 2024 * energy umbrella act
Slide 7: Impacts
Impacts Renewable energies Energy efficiency • National interest • Reduced demand from end-customers and targets for suppliers • New incentive instruments and changes to existing ones Community-based renewables projects Pricing • Energy sharing locally • Base supply, discontinuation of average • DSO
Slide 8: Resumption of negotiations with EU
Resumption of negotiations with EU Why seek an agreement on electricity? • Security of supply • Stability of the Swiss transmission grid • Be part of the decision-making Electricity market liberalisation • Conditions set by EU for agreement • Switzerland’s requests: o Base supply to be maintained o
Slide 9: 2023 highlights
2023 highlights
Slide 10: Éoliennes de Sainte-Croix
éoliennes de Sainte-Croix
Slide 11: Annual review
Annual review Key accomplishments • Inauguration of Sainte-Croix wind farm • Target for solar and district heating rollouts achieved • Call centre brought back in house • Click&Charge: 13,844 parking spaces pre- installed • HaaS: 122 heat pumps, 182 PV Areas for attention • Disappointing geothermal
Slide 12: Solar blueprint
Solar blueprint Sharp acceleration in 2023 • 39 industrial installations commissioned compared with approx. 20 in 2022 and 2021 • 17.3 MWp extra capacity, bringing total to 61 MWp
Slide 13: Our grid
Our grid CHF 88m capex • Maintenance, modernisation and development of our 11,000 km of power lines • Fibre • 60,000 smart meters 6,328 grid connection requests* Unprecedented burden on grid following exponential rise in distributed generation Cost-effective generation * power generation install
Slide 14: Thermal energy plan
Thermal energy plan Another year of strong expansion • 8 new power generation locations in 2023 • Production of 78 GWh of heat and cooling, compared with 67 GWh in 2022
Slide 15: Romande Energie Services
Romande Energie Services Key accomplishments • EBIT target achieved • RES-Geneva inaugurated • Building renovation on an uptrend ID GO founded • Romande Energie subsidiary • Speeding up and simplifying building renovation in Western Switzerland
Slide 16: Innovation
Innovation RE Ventures • Our innovation accelerator in PropTech / CleanTech • Equity stakes • Proxipel • Enerdrape • Popety Data and AI built into our processes and solutions • Building Relationship Manager • Generation and demand forecasts
Slide 17: Financial results
Financial results 31/12/2023
Slide 18: 2023 – a catch-up year
2023 – a catch-up year Undoing the effects of record energy price surge in 2022 • Outstanding operating Impacted by the following performance • Cost clawbacks from 2021 and 2022 • Income diversification across 4 core businesses: • Impacts of climate change on 1) electricity and thermal generation de
Slide 19: Regulated business foundation (2023)
Regulated business foundation (2023) Solid recurring contribution to Group results CHF 20m CHF (10)m Energy supply Running fees margin customers CHF 61m authorised CHF 9m CHF 51m * Connection CHF 42m costs Return on Total return after amortisation regulated Fluctuates depending on infrastructure on:
Slide 20: Return on invested capital
Return on invested capital WACC 2023 2024 2025 Authorised by regulator (ElCom) Grid 3.83% 4.13% 3.98% Generation* 4.98% 5.23% 5.11% * Year in which rate is applied to regulated tariff calculation Power grid Power generation facilities WACC grid 2023 WACC generation applied in 2023 3.83% 4.98% Grid v
Slide 21: Authorised margin per kWh
Authorised margin per kWh CHF 75 per year = gross margin allowed by regulator for ‘regulated’ customers CHF 95/meter Until 2019 CHF 95 CHF 75/meter 2020-2023 CHF 75 -21% ~ CHF 6m 2024+ CHF 60 -20% ~ CHF 4m 2018 2019 2020 2021 2022 2023 Actual energy supply margin* Authorised energy supply margin Wha
Slide 22: Electricity: extraordinary year
Electricity: extraordinary year 60 +75 56 2022 2023 40 23 20 13 CHF m 9 2 0 (7) (10) + CHF 58m Energy impact (20) (19) EBIT (40) Energy supply margin RE France FMHL* Pricing policy Lower market price Lower market price Lower price spread Lower demand Higher generation output 22 * FMHL Forces motrice
Slide 23: Consolidated KPIs in 2023
Consolidated KPIs in 2023 Energy supply margin catch-up & boost from ALPIQ Revenues EBIT Associates Net profit 928 215 746 141 100 45 41 7 6% 11% ___________________ 6% 23% ____________________ ____________________ ____________________ 2022* 2023 2022* 2023 2022 2023 2022* 2023 Cash flow from ops. C
Slide 24: Results by segment
Energy Solutions Grids Romande Energie +42% Services CHF m 540 +17% 380 +13% 267 312 144 164 2.3 5.2 (1.5) 47 50 49 BY SEGMENT 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 restated restated 0% 9% 19% 16% 2% 3% H1 2023 better than H2 2023 Sharp revenue growth At cruising speed and much
Slide 25: Sizeable contribution to energy transition
Sizeable contribution to energy transition Strategy 2021-20262027 +42% +12% Number of installations in 2023 2021 2022 2023 TOTAL CAPEX CHF m 126 179 200 505 100% CH 31 187 1* 4 40 CHF m F 8 1 4 0 0 60 CHF m 161 32% PROJECTION 20262027 INVESTMENT Other Heating CHF m 11% networks Power 88 generation
Slide 26: 10 years of Romande Energie France
10 years of Romande Energie France 13 assets, 100% renewable, 11% average yearly rise in operating profit Revenues EBIT ↘ price > ↗ volumes CHF m 27.4 2020 8 4 1 CHF 190m +Cestas 21.7 +Icaunaise +Calycé 77 2019 16.9 MW REF Hydro Windfall tax 12.9 2017 158 REF Eolien 3.3 GWh +15% 6.3 4.2 8.7 2.4 2.8
Slide 27: ALPIQ, an extraordinarily high contribution in 2023
ALPIQ, an extraordinarily high contribution in 2023 Valuation Results CHF 583m CHF 141m value of interest share of EOSH profit in EOSH sh. equity (CHF 4m in 2022) Dividend 2022 (CHF 445m in 2022) CHF 3.3m 29.71% (shareholders’ equity) ALPIQ + CHF 1.6bn ALPIQ CHF 468m EOS NER + CHF 0.6bn EOS NER CHF
Slide 28: Diversified generation sources
Diversified generation sources in Switzerland and Europe => risk mitigation Generation (GWh) 2023 % Generation 2023 % Switzerland 10632 63% GERMANY (GWh) France 2706 16% France 567 66% ITALY 2475 14% Germany 256 30% Spain 514 3% HUNGARY FRANCE Portugal 37 4% Hungary 447 3% SWITZERLAND Bulgaria 66 1%
Slide 29: REHN share and steady dividend
REHN share and steady dividend 23.05.2023 28.06.2023 - SPLIT 1:25 31.12.2023: +26% Dividend: CHF 1.44 New ISIN: CH1263676327 Total return Amount paid before split: CHF 36 01.01.2024 Launch CHF 55 Market-making Resolution proposed 2023 dividend CHF 1.44 per share payable on 4 June 2024 Price-to-book
Slide 30: A commitment that is paying off
A commitment that is paying off Genuine ESG commitment Achievements in 2023 and outlook • Stable ESG ratings • 1st Green Bond Report (48% allocated) • 39 new renewable generation facilities A- B • Committed to join SBTi in 2024 C • Addition of sustainability clause to our Articles of Association, •
Slide 31: Value creation strategy
Value creation strategy 2023 = extraordinarily strong year 2024 = results set to fall sharply • tariff stability • reduction in authorised return • continued rollout of solar power and district heating 2025+ = positive momentum for value creation • forecast return on investment • major investments b
Slide 32: Next events
Next events
Slide 33: Calendar
Calendar Closure of the share register 15 May 2024 122nd Annual General Meeting 29 May 2024 Ex dividend date 31 May 2024 Record date 3 June 2024 Dividend payment 4 June 2024 H1 2024 results 5 September 2024 33
Slide 34: Thank you for listening
Christian Petit Chief Executive Officer Thank you for listening Nicolas Conne CFO and Head of Services
Slide 35: Appendix
Appendix
Slide 36: Power generation in 2023, 100% renewable
Actual generation, 100% renewable (as a % of ownership interest in installation) GWh 2022 2023 % difference Hydro 427 528 24% Switzerland 389 488 25% France 38 41 8% Power generation Solar 72 72 (0%) Switzerland¹ 38 39 1% France 34 33 (2%) in 2023 Wind Switzerland France 65 0 65 83 0 83 28% 0% 28% 1
Slide 37: Restatement – financials at 31 Dec 2022
Restatement – financials at 31. Dec 2022 31 Dec. 31 Dec. • Error detected by Romande Energie’s internal controls CHF thousands 2022 2022 Change • Following a steeper drop in usage from regulated Restated Reported customers than the Swiss average Net revenues 745 825 742 359 3 466 • In context of hig
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