Romande Energie Holding SA · SIX:REHN
Romande Energie Holding SA — FY2013 Earnings Presentation
41 slides from Romande Energie Holding SA's earnings presentation, Apr 1, 2014
Slide 1: 2013 Annual Results
2013 ANNUAL RESULTS Investor presentation Zurich April 1st, 2014 Pierre-Alain Urech, CEO Denis Matthey, CFO www.romande-energie.ch
Slide 2: Romande Energie at a glance
Romande Energie at a glance • Challenges facing the energy industry • Financial results • Remarks and outlook 2 www.romande-energie.ch
Slide 3: Romande Energie at a glance
Romande Energie at a glance • Romande Energie is the leading supplier of electricity in Western Switzerland. • Core lines of business: Power generation Energy distribution Energy marketing Energy services and management • More than 300,000 end-customers situated in close to 300 municipalities in the
Slide 4: Romande Energie at a glance: Group structure
Romande Energie at a glance Group structure • Romande Energie Holding SA is Shareholder base: listed on the Zurich Stock • Vaud Canton (38.60%) Exchange. • Municipalities in Vaud canton (14.05%) • It was founded in 1901 as • Treasury shares (9.95%) Compagnie vaudoise des Forces • Groupe E (5.80%) mo
Slide 5: Challenges facing energy industry
• Romande Energie at a glance Challenges facing energy industry • Financial results • Remarks and outlook 5 www.romande-energie.ch
Slide 6: Challenges facing the energy industry: European market
Challenges facing the energy industry European market in state of flux • Economic recession drop in energy consumption. • Hefty subsidies by some EU member states sharp upturn in generation from new sources of renewable energy. • This has led to: o Overproduction o Plunge in market power prices
Slide 7: Switzerland: Energy Strategy 2050
Challenges facing the energy industry Switzerland: Energy Strategy 2050 • Energy Strategy 2050 phasing-out nuclear power by relying on: • energy efficiency • renewable sources • electricity imports • use of natural gas-fired plants to cover supply needs in the medium term • Romande Energie support
Slide 8: Market liberalisation and EU agreement
Challenges facing the energy industry Market liberalisation and EU agreement • Result of referendum held on 9 February this has halted talks with the EU towards a bilateral agreement on the electricity market, due to come into force on 1 January 2015. • Federal Councillor Doris Leuthard has reiter
Slide 9: Cantons, municipalities and consumers
Challenges facing the energy industry Cantons, munipalities and consumers • Vaud - 1 July 2014: entry into force of new Energy Act under which no less than 30% of hot-water needs and 20% of electricity needs in new constructions must be met by renewable energies. • Valais – talks under way on the
Slide 10: Financial results
• Romande Energie at a glance • Challenges facing the energy industry Financial results • Remarks and outlook 10 www.romande-energie.ch
Slide 11: Key figures in 2013
Key figures in 2013 Stable revenue and solid operating profit Key figures 2013 2012 CHF 000 ∆ Net revenues 577 814 579 412 -0.3% Gross profit 260 122 259 682 +0.2% As % of net revenues 45% 45% Operating expenses ( 137 543) ( 138 088) -0.4% EBITDA 122 579 121 594 +0.8% As % of net revenues 21% 21% EB
Slide 12: Key figures in 2013: Grip on operating expenses
Key figures in 2013 Grip on operating expenses Key figures 2013 2012 CHF 000 ∆ Net revenues 577 814 579 412 -0.3% Gross profit 260 122 259 682 +0.2% As % of net revenues 45% 45% Operating expenses ( 137 543) ( 138 088) -0.4% EBITDA 122 579 121 594 +0.8% 2013 2012 ∆ As % of net revenues 21% 21% Perso
Slide 13: Key figures in 2013: Rise in EBITDA and EBIT
Key figures in 2013 Rise in EBITDA and EBIT Key figures 2013 2012 CHF 000 ∆ Net revenues 577 814 579 412 -0.3% Gross profit 260 122 259 682 +0.2% As % of net revenues 45% 45% Operating expenses ( 137 543) ( 138 088) -0.4% EBITDA 122 579 121 594 +0.8% As % of net revenues 21% 21% EBIT 68 917 67 789 +
Slide 14: Solid operating performance in a tough environment
Key figures in 2013 Solid operating performance in a tough environment 14 www.romande-energie.ch
Slide 15: Positive contribution from associates
Key figures in 2013 Positive contribution from associates Key figures 2013 2012 CHF 000 ∆ Net revenues 577 814 579 412 -0.3% Gross profit 260 122 259 682 +0.2% As % of net revenues 45% 45% Operating expenses ( 137 543) ( 138 088) -0.4% EBITDA 122 579 121 594 +0.8% As % of net revenues 21% 21% EBIT 6
Slide 16: Positive contribution from associates: EOS Holding
Key figures in 2013 Positive contribution from associates Key figures CHF 000 EOS HOLDING 2013 : 28.72% 29.71% 2012 2013 ∆ Net revenues 577 814 579 412 -0.3% Gross profit 260 122 259 682 +0.2% As % of net revenues 45% 45% Share of revenues of Other Group Operating expenses EOS Holding SA ( 137 543
Slide 17: Net profit in positive territory
Key figures in 2013 Net profit in positive territory after two years of hefty impairment charges relating to Alpiq Key figures 2013 2012 CHF 000 ∆ Net revenues 577 814 579 412 -0.3% Gross profit 260 122 259 682 +0.2% As % of net revenues 45% 45% Operating expenses ( 137 543) ( 138 088) -0.4% EBITDA
Slide 18: Profit by business unit
Key figures in 2013 Profit by business unit 18 www.romande-energie.ch
Slide 19: Consolidated balance sheet
Consolidated balance sheet Financial independence ratio at 81% and acquisition of own shares Condensed consolidated balance sheet CHF 000 31.12.2013 31.12.2012 ASSETS Current assets 542 198 592 878 Non-current assets 1 874 411 1 843 167 Total assets 2 416 609 2 436 045 LIABILITIES AND SHAREHOLDERS'
Slide 20: Cash flow
Cash flow Group's business operations still generating plentiful cash Cash flows CHF 000 2013 2012 Cash flow before change in working capital 159 132 178 953 Change in WCR 27 657 ( 10 011) Net cash provided by operating activities 186 789 168 942 Purchases of PPE and intangible assets ( 103 251) ( 7
Slide 21: Balance sheet figures
Balance sheet figures Capital expenditure 21 www.romande-energie.ch
Slide 22: Cash flow
Cash flow Group's business operations still generating plentiful cash Cash flows CHF 000 2013 2012 Cash flow before change in working capital 159 132 178 953 Change in WCR 27 657 ( 10 011) Net cash provided by operating activities 186 789 168 942 Purchases of PPE and intangible assets ( 103 251) ( 7
Slide 23: Other financial indicators
Other financial indicators Respectable figures despite tough conditions Key figures 2013 2012 2011 Regulated rate of return for grid operation (WACC) 3.83% 4.14% 4.25% Regulated rate of return for power generation (WACC) 6.09% 6.09% 6.09% Free cash flow CHF 000 12 359 43 418 ( 34 235) Dividends rece
Slide 24: RE Holding share price
RE Holding share price Energy transition is weighing on industry Source : SIX-Telekurs 24 www.romande-energie.ch
Slide 25: RE Holding share price
RE Holding share price Book value per share still far higher than market price 25 www.romande-energie.ch
Slide 26: RE Holding share price: P/Book comparison
RE Holding share price Book value per share still far higher than market price Switzerland P/BOOK Europe P/BOOK BKW 0.60 E. ON 0.76 ALPIQ 0.61 RWE 2.26 REPOWER I 0.53 ENBW 1.45 REPOWER PS 0.38 EDF 1.57 ENERGIEDIENST 0.95 ENEL 1.02 Ø 0.61 Ø 1.41 ROMANDE ENERGIE 0.56 Source : Bloomberg / March 2014 26
Slide 27: Dividend for 2013
Dividend for 2013 Solid operating results have allowed for increase in dividend to CHF 30 (50.4% of net profit) Payout ratio (EBITDA) 27 www.romande-energie.ch
Slide 28: Dividend for 2013 (payment date: 4 June 2014)
Dividend for 2013 (payment date: 4 June 2014) Dividend yield of 3% tallies with sector average Par value : CHF 25 Market capitalisation: CHF 1 093 290 000 Free Float: 20.68% ISIN: CH0025607331 28 www.romande-energie.ch
Slide 29: Core shareholders (December 2013)
Core shareholders (December 2013) Romande Energie Holding SA 29 www.romande-energie.ch
Slide 30: Financial calendar for 2014
Financial calendar for 2014 • 31 March Publication of 2013 annual results in Lausanne • 1 April Analysts/investors presentation of 2013 results in Zurich • 25 April 2013 Management Report (french) and Full Financials (french and english) • 16 May Closure of the share register • 27 May Annual General
Slide 31: Remarks and outlook
• Romande Energie at a glance • Challenges facing the energy industry • Financial results Remarks and outlook 31 www.romande-energie.ch
Slide 32: From power supplier to energy all-rounder
Remarks and outlook From power supplier to energy all-rounder • Romande Energie's business strategy common selling blueprint for all of the Group's business lines. • The aim is that Romande Energie will become the reference in Western Switzerland for informing and supporting customers through the
Slide 33: Optimising our supply sources
Remarks and outlook Optimising our supply sources • Proprietary power generation = less than 20% of energy marketed to customers. • The purchasing of electricity from power firms and on the wholesale market is a core business optimising management of energy portfolio but within strict risk paramet
Slide 34: Priority given to renewable sources
Remarks and outlook Priority given to renewable sources • Priority is given to generating from renewable sources and to projects situated in Switzerland: o Optimising capacity of existing installations + CHF 1bn (e.g. Rivaz x7, Les Farettes +70%) o Developing projects in solar power, biomass, in sma
Slide 35: Grid performance
Remarks and outlook Grid performance • Steady capital expenditure (approx. CHF 50m annually) maintaining, modernising, adapting to new generation methods and new expectations of customers (who want to monitor and thus keep control of consumption). • Deploying optical fibre increasing quality of
Slide 36: Meeting new customer expectations
Remarks and outlook Meeting new customer expectations • Encouraging energy efficiency: o Energy services • Energy audits • Economical public lighting • Solutions for producing electricity, heat and cool air (heat pumps, PV solar and thermal installations, etc.) o Awareness-raising • "Déclics" scheme
Slide 37: Meeting new customer expectations
Remarks and outlook Meeting new customer expectations • New price plans for today's energy context: Contrats Energies Libres with Terre Suisse and Terre Romande offerings: • Regional sourcing of power • Production type • Solutions promoting energy efficiency • No minimum duration • Internal programm
Slide 38: A responsible corporate citizen
Remarks and outlook A responsible corporate citizen • CSR is a priority at Romande Energie. It is a leitmotiv throughout the whole company. • Our CSR strategy respects all our stakeholders and customers, factoring in their concerns about the economic, environmental and social impact of our operati
Slide 39: Thank you for listening
Thank you for listening We will be pleased to take questions Pierre-Alain Urech Denis Matthey CEO CFO [email protected] [email protected] +41 (0) 21 802 97 00 +41 (0) 21 802 97 05 39 www.romande-energie.ch
Slide 40: Contact – Investor relations
Contact – Investor relations Romande Energie Holding SA Rue de Lausanne 53 Case postale CH-1110 Morges 1 Investor relations René Lauckner, Head of Group Treasury Telephone: +41 (0)21 802 95 24 Fax: +41 (0)21 802 95 18 Email: [email protected] 40 www.romande-energie.ch
Slide 41: Contact – Media relations
Contact – Media relations Romande Energie Holding SA Rue de Lausanne 53 Case postale CH-1110 Morges 1 Media relations Karin Devalte, Head of Communications Telephone: +41 (0)21 802 95 67 Fax: +41 (0)21 802 97 11 Email: [email protected] 41 www.romande-energie.ch