Romande Energie Holding Sa · SIX:REHN
Romande Energie Holding Sa — FY2010 Earnings Presentation
35 slides from Romande Energie Holding Sa's earnings presentation, Mar 28, 2011
Slide 1: 2010 Annual Results
2010 ANNUAL RESULTS Morges, 28 March 2011 Pierre-Alain URECH, CEO Denis MATTHEY, CFO © ROMANDE ENERGIE www.romande-energie.ch
Slide 2: Agenda
1. Romande Energie today 2. Financial results 3. Outlook 4. Questions © ROMANDE ENERGIE www.romande-energie.ch P. 2
Slide 3: Romande Energie today
Romande Energie today Our businesses Among the top 5 out of 800 power distribution companies Marketeer 280,000 clients, approx. 500,000 Eligible inhabitants clients Supply manager (purchases about 80%) kWh (electricity) Captive Services clients Producer Grid usage(transportation) (about 20%) D
Slide 4: Highlights in 2010: Promoting responsible consumption
Romande Energie today Highlights in 2010 Promoting increasingly responsible consumption • Continued promotion of solutions to enhance energy efficiency • New partnerships: Geroco / Ecowizz solution and Topten • Cooperation with other players in the power sector to develop intelligent power grids (Sm
Slide 5: Highlights in 2010: Investing in new renewable energies
Romande Energie today Highlights in 2010 Investing in new renewable energies • Objective: to meet the energy requirements of 85,000 households by 2025 (producing 250-300 GWh from renewable sources). • The Environment business unit is exploring numerous avenues and has embarked on several projects to
Slide 6: Highlights in 2010: Expanding our distribution networks
Romande Energie today Highlights in 2010 Expanding our distribution networks • Continued investment in the power grids (roughly CHF 60 million annually), taking into account growing customer needs as well as technological and demographic trends • 2010: major building work on transmission lines and t
Slide 7: Highlights in 2010: Quality of customer relations
Romande Energie today Highlights in 2010 Quality of customer relations: an important and recurring theme • Romande Energie Commerce was entrusted with the management of supplies and customer relations at Société Electrique Champéry - Val-d’Illiez on 1 January 2010, and at Forces Motrices de l’Avanço
Slide 8: Subsidiaries and ventures
Romande Energie today Subsidiaries and ventures Graphique à ajouter par Karin © ROMANDE ENERGIE www.romande-energie.ch P. 9
Slide 9: Agenda: Financial results
1. Romande Energie today 2. Financial results 3. Outlook 4. Questions © ROMANDE ENERGIE www.romande-energie.ch P. 10
Slide 10: Environment 2010
Environment 2010 • Favourable economic climate • Low prices and low volatility on EEX market • Fall in euro • Increase in volumes distributed • Control of operating expenses • EBITDA up 9% © ROMANDE ENERGIE www.romande-energie.ch P. 11
Slide 11: Improvement in EBIT as Vaud Economy shows more buoyancy
Improvement in EBIT as Vaud Economy shows more buoyancy Key figures from continuing operations CHF 000 2010 2009 2008 Net revenues 577 111 583 745 572 455 Gross margin 237 117 220 784 248 137 As % of net revenues 41% 38% 43% Operating expenses ( 129 525) ( 121 861) ( 118 343) EBITDA 107 592 98 923 1
Slide 12: EBIT: a key business indicator
EBIT: a key business indicator (in absolute terms and as % of revenues) © ROMANDE ENERGIE www.romande-energie.ch P. 13
Slide 13: Segmentation of revenues
Segmentation of revenues CHF 000 © ROMANDE ENERGIE www.romande-energie.ch P. 14
Slide 14: EBIT by operating sector
EBIT by operating sector CHF 000 • Marketing: a low-margin business with volatile supply prices • Distribution: stable and regulated revenues. Capital- intensive business • Environment: a future-oriented business facing implementation difficulties © ROMANDE ENERGIE www.romande-energie.ch P. 15
Slide 15: Substantial cash resources to meet tomorrow's challenges
Substantial cash resources to meet tomorrow’s challenges Cash flows CHF 000 2009 2009 Net cash provided by operating activities 174 667 233 523 Purchases of tangible fixed assets ( 113 008) ( 128 346) Sales / (purchases) of investment securities ( 62 547) ( 15 644) Other changes 4 292 ( 1 336) Net c
Slide 16: Financially very solid
Financially very solid (Financial independence ratio: 85 %) Condensed consolidated balance sheet CHF 000 31.12.2010 31.12.2009 ASSETS Current assets 527 621 431 048 Non-current assets 2 544 632 2 530 463 Total assets 3 072 253 2 961 511 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities 186 45
Slide 17: Main indicators
Main indicators Key figures 2010 2009 Regulated WACC (weighted average cost of capital) 4.55% 4.55% Free cash flow CHF 000 ( 31 166) ( 40 586) Dividends received from affiliated companies CHF 000 61 455 141 023 Return on capital employed 5.19% 4.28% Return on equity 3.21% 27.19% Net cash CHF 000 254
Slide 18: Expenditure on long-term tangible assets (CAPEX)
Expenditure on long-term tangible assets (CAPEX) 16% 84% 15% 85% © ROMANDE ENERGIE www.romande-energie.ch P. 19
Slide 19: Total investments in 2010
Total investments in 2010 Services (Finance, IT, Logistics) Energy production Administrative Centre 51% Hydro plants Rolle 21% Biomass plants 13% Solar plants 15% New renewable energies Distribution © ROMANDE ENERGIE www.romande-energie.ch P. 20
Slide 20: Ordinary dividend of CHF 25.00 up 14%
Ordinary dividend of CHF 25.00 up 14 % 20.00 20.00 20.00 © ROMANDE ENERGIE www.romande-energie.ch P. 21
Slide 21: Financial calendar 2011
Financial calendar 2011 • 28 March 2010 results • 29 March Presentation of 2010 results • 6 May Closure of share register • 17 May Annual General Meeting (Morges) • 19 May Ex-dividend • 23 May Record date • 24 May Payment date • 20 August 2011 First-half results © ROMANDE ENERGIE www.romande-energie
Slide 22: Agenda: Outlook
1. Romande Energie today 2. Financial results 3. Outlook 4. Questions © ROMANDE ENERGIE www.romande-energie.ch P. 23
Slide 23: Outlook: Ensuring supply
Outlook Challenges Ensuring supply • Energy efficiency constitutes a major challenge and must continue to be encouraged. The objective is to stabilize and even reduce demand for electricity. This is all the more important as the improvement in energy efficiency and technological and demographic fact
Slide 24: Outlook: Complementarity of production methods
Outlook Challenges Recognizing the complementarity of production methods • Production by Romande Energie covers about 20% of our clients’ needs • In order to ensure security of supply for clients and be more independent with regard to the electricity market, we have to increase our own-power product
Slide 25: Outlook: Giving new renewable energies a chance
Outlook Challenges Giving new renewable energies a chance • Romande Energie is developing numerous new projects. Some of these are hampered by: • red tape Which are an obstacle to expanding • oppositions production of eco-energies in Switzerland • Of all the green technologies, wind farms can best c
Slide 26: Outlook: Adapting to tomorrow's energy world
Outlook Challenges Adapting to tomorrow’s energy world • Other challenges that Romande Energie will take up include: • increasing the number of direct clients • extending the grids meaning better distribution of costs, economies of scale and greater price competitiveness • All these challenges h
Slide 27: Strategy for 2011-2020: Vision
Outlook Strategy for 2011-2020 Strategy renewed VISION Romande Energie Group will strengthen its position on the Swiss market alone, or through alliances or business combinations between now and 2020. It offers its clients a range of high-quality multi-energy products and services at competitive pri
Slide 28: Strategy for 2011-2020: Mission and values
Outlook Strategy for 2011-2020 Strategy renewed MISSION We offer security of supply and reliable distribution of energy to all our clients. We ensure profitabilty in line with the expectations of our shareholders. We actively promote energy efficiency and renewable energies. VALUES Openness Resp
Slide 29: Strategy for 2011-2020: Lines of strategic development
Outlook Strategy for 2011-2020 Strategy renewed LINES OF STRATEGIC DEVELOPMENT • Customer orientation • Economic approach • Social commitment In brief: Romande Energie Group engages in: • multi-energy activities (electricity, gas, heat) • with an orientation by business area • alone or with partners
Slide 30: Implementation of strategy for 2011-2020
Outlook Strategy for 2011-2020 Implementation of strategy for 2011-2020 Romande Energie relies on its main assets: • Substantial financial capacity • Strategic shareholdings (EOSH, (Alpiq), FMHL, etc.) • High overall grid quality • Client orientation • Mastery of professional skills • Credibility an
Slide 31: Agenda: Questions
1. Romande Energie today 2. Financial results 3. Outlook 4. Questions © ROMANDE ENERGIE www.romande-energie.ch P. 32
Slide 32: Thank you for your kind attention!
Thank you for your kind attention! We will be pleased to take any questions you may have Denis Matthey Pierre-Alain Urech CFO CEO Rue de Lausanne 53 Rue de Lausanne 53 CH – 1110 Morges CH – 1110 Morges [email protected] [email protected] 021 802 97 05 021 802 97 00
Slide 33: Contact: Media Relations
Contact Romande Energie Holding SA Rue de Lausanne 53 Case postale CH-1110 Morges 1 Media Relations Karin Devalte, Head of Communications Phone: +41 (0)21 802 95 67 Fax: +41 (0)21 802 97 11 E-Mail: [email protected] © ROMANDE ENERGIE www.romande-energie.ch P. 34
Slide 34: Contact: Investor Relations
Contact Romande Energie Holding SA Rue de Lausanne 53 Case postale CH-1110 Morges 1 Investor Relations René Lauckner, Treasurer Phone: +41 (0)21 802 95 24 Fax: +41 (0)21 802 95 18 E-Mail: [email protected] © ROMANDE ENERGIE www.romande-energie.ch P. 35
Slide 35: Abbreviations
Abbreviations CTV Centrale Thermique de Vouvry SA ESSA Energie Solaire SA FGB Société des Forces Motrices du Grand-St-Bernard FMA Forces Motrices de l’Avançon SA FMHL Forces Motrices Hongrin-Léman SA FMS Forces Motrices de Sembrancher SA HREN Romande Energie Holding SA RE Romande Energie SA REC Roma