Romande Energie Holding Sa · SIX:REHN
Romande Energie Holding Sa — FY2024 Earnings Presentation
35 slides from Romande Energie Holding Sa's earnings presentation, Apr 8, 2025
Slide 1: 2024 results Investor meeting
2024 results Investor meeting Lausanne, 8 April 2025 Zurich, 9 April 2025
Slide 2: Sommaire
Sommaire 01 Introduction 02 Regulatory framework 03 2024 highlights 04 A new cycle 05 Full-year results 06 Next events 2
Slide 3: Introduction
Introduction
Slide 4: Sharp fall in 2024 after an exceptional 2023
Sharp fall in 2024 after an exceptional 2023 • Obstacles from regulatory environment • Grids business unit solid • Pivotal provider of energy renovation solutions in buildings • Strategic vision reiterated • Investment roadmap intact and increased generation capacity Simplifying and strengthening co
Slide 5: Regulatory framework
Regulatory framework
Slide 6: Challenges and opportunities from 2026
Challenges and opportunities from 2026 Regulated customers – public service Building energy renovation Abolition of authorised gross margin Federal and cantonal laws and incentives Incorporation of losses arising from supply management probably denied EU electricity deal Customer energy effici
Slide 7: 2024 highlights
2024 highlights
Slide 8: CVC installations, Biopôle project
Slide 9: Achievements in 2024
Achievements in 2024 Electricity and thermal generation (new plants) 2 1 40 +36 MW installed 5 45 assets up and running Click & Charge Digitalisation policy 500th • • • IT system upgrade Customer experience and digital services Data analysis and AI • Cybersecurity and data protection 9
Slide 10: Our grid
Our grid Achievements in 2024 Inauguration of Lucens substation Completion of voltage change in Aigle, Ollon and Leysin region 5,112 new generator connections 54,000 smart meters installed 10
Slide 11: Romande Energie Services
Romande Energie Services Major events in 2024 Targeted increase in number of employees achieved ID GO founded • Surge in energy renovations • Breakeven from year one Selected for Morges ice rink on the strength of sustainability criteria 11
Slide 12: A new cycle
A new cycle
Slide 13: Streamlining the strategy
Streamlining the strategy • Confirmation of goals and strategic initiatives: “Making Western Switzerland the first net-zero region in the country” • Refocusing on pure-play energy business: generation and distribution of electricity and heat/cooling & energy renovations • Even better sustainability
Slide 14: Organisational changes
Organisational bug Co changes RS ° Clients People & Finance & Talent Services Digital & > %, Innovation eS oy eS Se Rs Y oF "Sit oe 8) ‘ wy “ond the first nett wy Economic ) Social pillar pillar Environmental pillar 14
Slide 15: New leadership
New leadership François Fellay, new CEO Michel Rizzo, Head of • Appointment on 12 March People & Talent • To take up role by 1 October • Start date: 1 May 2025 • Patrick Bertschy interim CEO following Christian Petit’s departure in • Departure of Virginie Vasselon December 2024. in November 2024 Aur
Slide 16: Full-year results
Full-year results
Slide 17: Unusually low profits in 2024
Unusually low profits in 2024 2024 • Adjusted EBIT under strain from regulations but in line with our forecasts • Net profit with low contribution from Alpiq and impacted by impairment charges • Robust cash flow CAPEX • Delay in returns on investments 2025 and thereafter • Implementation of efficien
Slide 18: Energy supply margin squeezed to the bone
Energy supply margin squeezed to the bone Main reason behind severe correction in 2024 CHF m Abolition of average price method = boost to energy supply margin ~CHF 15m/year from 2026 Pricing policy: including impact on gross margin authorised by regulator (-CHF 4m) 18
Slide 19: Consolidated figures for 2024
Consolidated figures for 2024 Adjusted EBIT down sharply, in line with estimates Restatement of otherwise solid ALPIQ earnings CHF m Revenues EBIT Net profit Associates Revenues 150 928 100 10 832 10 2 746 77 45 41 23 14 26 15 7 6% 11% 3% 2% 6% 16% 3% _________________________ ______________________
Slide 20: Grids
Grids Solid and stable core business despite regulatory pressure 267 312 326 4.13% CHF 83m WACC (3.83% in 2023) CAPEX 50 (CHF 88m in 2023) 49 48 19% 16% 15% +54,000 Smart meters (62% installed) Revenues 2024 Outlook for 2025 • Higher WACC (+3m) • New investment target (≈ 80-90m) • Higher cost of gri
Slide 21: Romande Energie Services
Romande Energie Services Rising profits and pivotal provider of energy renovation solutions CHF m 164 161 144 5 6 2 4 2% 3% 4% Revenues Adjusted EBIT Reported EBIT 2024 Outlook for 2025 • Street lighting transferred to Grids: • RES 100% owned by Group (20% stake not yet (-6m) in revenues owned acqui
Slide 22: Energy Solutions
Energy Solutions Challenges in short term but genuine asset in long term 5.23% CHF m 540 434 380 Generation WACC (4.98% in 2023) CHF 75m CAPEX 47 (CHF 105m in 2023) 9% (1.5) (16) (27) 1st wind farm in Vaud Sainte-Croix Revenues Adjusted EBIT Reported EBIT Generation 20 GWh, in line 2024 Outlook for
Slide 23: District heating
EXCERPT FROM CONSOLIDATED FIGURES District heating Ramp-up taking far longer than expected CHF m 24 20 2024 17 14 • Increased revenues but pressure on margins • Time lag in returns on investment (building permits and connections delayed) • Impairment against two gasification-based plants 2.6 3.2 2.6
Slide 24: Romande Energie France
SUMMARY FIGURES FOR ENERGY SOLUTIONS Romande Energie France Positive contribution from French operations CHF m 27 22 19 9 2 3 8 2022 2023 2024 Revenues EBIT 2024 • Downward pressure on market prices offset by higher 4 generation • Increase in operating margin Outlook 1 • 2025: BAR hydro plant owned
Slide 25: EOS Holding
EOS Holding Important to green energy transition in Europe Romande Energie’s interest contribution of renewable energies diversification in terms of geography and generation sources 2024 – EOS NRE • Continued investment • Pilot projects in green energy storage GWh 26 18 766 wind farms solar powe
Slide 26: ALPIQ – EOS NRE
ALPIQ – EOS NRE 2024 Solid results and negative book impact for Romande Energie CHF m IFRS SWISS GAAP FER 33.33% 29.71% ≈10% Highlights • Restatement - partial reversal of accounting mismatch on energy derivatives (287) • Repayment of hybrid loan (650) Contribution for 3m 26 26
Slide 27: Investments CHF 670m since 2021
Investments CHF 670m since 2021 Energy transition and electrification growth drivers CHF m Estimate Per year Investment 2022-2024 Investment 2025-2030 CHF m 200 179 Thermal systems ≈40 163 NRE in CH 20-40 83 Grid NRE in France 20-40 40 Thermal systems NRE in CH Power grid 80-90 35 5 Other __________
Slide 28: Extremely positive cash flow
Extremely positive cash flow ... and rising despite the challenges CHF m Cash flow from operations 166 147 136 +50% EBITDA in 2030 _________________________ 2022 2023* 2024 EBITDA Adjusted EBITDA Cash flow from operations CHF 1.44 – dividend per share recommended to AGM on 14 May 2025 * restated 28
Slide 29: Sustainability: progress despite the challenges
Sustainability: progress despite the challenges Electricity Articles include sustainability Sustainability: 90% employees Generation +9% trained 2030 Sustainability Plan approved Thermal energy Supplier NPS: 57 (48) Production +20% 7,217 tCO2e saved through district heating Social and Environmental
Slide 30: Long-term uptrend
Long-term uptrend Historically weak year Short-term hurdles • 2025: adjusted EBITDA and adjusted EBIT in line with 2024 • Measures to improve efficiency and profitability • Refocusing on core business, ensuring value creation Investment plan intact • Growth catalysts: electrification, thermal
Slide 31: Next events
Next events
Slide 32: Calendar
Calendar Closure of the share register 30 April 2025 123rd Annual General Meeting 14 May 2025 Ex dividend date 16 May 2025 Record date 19 May 2025 Dividend payment 20 May 2025 H1 2025 results 2 September 2025 32
Slide 33: Thank you for listening
Patrick Bertschy Interim CEO Thank you for listening Nicolas Conne CFO and Head of Services
Slide 34: Annexe
Annexe
Slide 35: Power generation in 2024, 100% renewable
Installed capacity and Actual generation, 100% renewable (as a % of ownership interest in installation) 2023 2024 MW GWh MW GWh ∆ % GWh Hydro 177 528 182 572 8% Switzerland 164 488 165 517 6% France 13 41 17 55 35% Solar 90 72 106.7 85 19% Power generation Switzerland¹ 61 39 78 55 40% France 29 33 2