Romande Energie Holding SA · SIX:REHN
Romande Energie Holding SA — H1 2020 Earnings Presentation
21 slides from Romande Energie Holding SA's earnings presentation, September 2020
Slide 1: Group resilient amid pandemic and economic downturn
INVESTOR MEETING . C ROMANDE NERGIE Group resilient amid pandemic and economic downturn
Slide 2: Agenda
AGENDA SEPTEMBER 2020 Background Our vision H1 2020 financial results Q&A
Slide 3: Background
Slide 4: Fast-changing legal framework
INVESTOR MEETING | ROMANDE ENERGIE | SEPTEMBER 2020 4 FAST-CHANGING LEGAL FRAMEWORK Electricity Supply Act - Adapting plans to Energy Strategy 2050 - Improved integration of local renewables capacity Systemes transparence * - Strengthening security of supply Communautes INN citati énergie - Full mar
Slide 5: Energy market recovering
INVESTOR MEETING | ROMANDE ENERGIE | SEPTEMBER 2020 5 ENERGY MARKET RECOVERING January - March 2020 April - August 2020 - Coronavirus pandemic - Sharp recovery since lockdown ended - Economic growth brought to a halt - Power prices still heavily influenced by CO, and gas prices Ww CO, -7% \. Cal21 B
Slide 6: Our vision
Slide 7: A locally rooted corporate citizen helping to drive decarbonisation in Western Switzerland
A LOCALLY ROOTED CORPORATE CITIZEN HELPING TO DRIVE DECARBONISATION IN WESTERN SWITZERLAND \ #
Slide 8: Challenges: energy transition in Western Switzerland
INVESTOR MEETING | ROMANDE ENERGIE | SEPTEMBER 2020 8 5 CHALLENGES ENERGY TRANSITION IN WESTERN SWITZERLAND =" Acceleration and impact NEW TECHNOLOGY = Added value and efficiency Preparation and foresight EMPLOYER BRANDING = Retention and appeal STRATEGY 2018-2023 = Investment and growth 1 2 3 MARKE
Slide 9: Cutting-edge governance standards balanced across pillars
INVESTOR MEETING | ROMANDE ENERGIE | SEPTEMBER 2020 9 CUTTING-EDGE GOVERNANCE STANDARDS BALANCED ACROSS 3 PILLARS Projects assessed according to all three dimensions SOCIAL ss 2323 Employees ENVIRONMENTAL ECONOMIC
Slide 10: H1 2020 financial results
H1 2020 FINANCIAL RESULTS ROMANDE ENERGIE GROUP RESILIENT AMID PANDEMIC AND ECONOMIC DOWNTURN
Slide 11: First-half highlights
INVESTOR MEETING | ROMANDE ENERGIE! SEPTEMBER 202011 FIRST-HALF HIGHLIGHTS Strong rise in revenues boosted by property sale, solar farm acquisition (France) and wholesale market Solid expansion in margins with operating costs under control Business expansion of Romande Energie Services dampened by C
Slide 12: COVID-19 impacts
INVESTOR MEETING | ROMANDE ENERGIE | SEPTEMBER 2020 COVID-19 IMPACTS The Group's measures curbed the impact during the first six months of the year, except for energy services Lower power demand Worksites v The sharp slowdown in on standby | Risk of Joss some business lines was on accounts . challen
Slide 13: Segment reporting
INVESTOR MEETING | ROMANDE ENERGIE | SEPTEMBER 2020 13 SEGMENT REPORTING » Business expansion in Valais > Grid acquisition in Bussigny CHF ‘000 Energy Solutions en. 220 > > Drop in regulated return, from CHF 95 to 75 per customer, offset by higher average EBIT sea] as (1,507) > Income from assets ac
Slide 14: Quarterly earnings surge ahead
QUARTERLY EARNINGS SURGE AHEAD INVESTOR MEETING | ROMANDE ENERGIE | SEPTEMBER 2020 324 295 CHF m | +10% Net revenues i] +11% Gross profit 64 +25% EBITDA 80 45 O i 32 a +41% EBIT ™2019 @ 2020 —=— (14) (5) Profit from associates 33 13 Net profit for the period 14
Slide 15: Abundant cash reserves
INVESTOR MEETING | ROMANDE ENERGIE | SEPTEMBER 2020 15 v t : 7° | ABUNDANT CASH RESERVES H T t t H H ons CHF m 203 Net cash’ as Net cash flow Increase in cash Dividends Infrastructure Increase in =—— Net cash? at 1 Jan. 2020 from operations deposits/ + Acquisitions _ financial liabilities as at inve
Slide 16: Ownership structure and dividend
INVESTOR MEETING | ROMANDE ENERGIE | SEPTEMBER 2020 16 OWNERSHIP STRUCTURE AND DIVIDEND 40 = Vaud Canton — Dividend paid per share 36 37.69% | = REH (treasury shares) 35 | | = Groupe E SA 30 = Credit Suisse Anlagestiftung 25 = Banque Cantonale Vaudoise 20 7) > = Lausanne City Council 2012 2013 2014
Slide 17: Romande Energie's carbon profile
ROMANDE ENERGIE’S CARBON PROFILE INVESTOR MEETING | ROMANDE ENERGIE! SEPTEMBER 2020 17 100 (positive) Impact of Energy Transition 0 (negative) 0 (high) e Electric Utilities global CO,-Emission Romande Energie 100 (low) Romande Energie’s carbon- related risk/opportunity profile is favourable: » Low C
Slide 18: ESG profile of Romande Energie
INVESTOR MEETING | ROMANDE ENERGIE | SEPTEMBER 2020 ESG PROFILE OF ROMANDE ENERGIE Sustainability Monitor Controversial activities: Company Rating > None high Outlook: Sector Rating CLUOLIITTT Tmt) low high negative positive low
Slide 19: Outlook
OUTLOOK INVESTOR MEETING | ROMANDE ENERGIE! SEPTEMBER 2020 19. 1 Capitalise on local roots and make the business model more customer- focused 2 Offer power to all regulated-market customers that is 100% Swiss and 100% renewable 3 Continue executing strategy 2018- 2023 by doubling the national compon
Slide 20: Q&A
Slide 21: Thank you for your attention
THANK YOU FOR YOUR ATTENTION