Romande Energie Holding Sa · SIX:REHN
Romande Energie Holding Sa — Investor Presentation (September 2024)
27 slides from Romande Energie Holding Sa's investor presentation, Sep 18, 2024
Slide 1: Leveraging the green electrification of our society
Leveraging the green electrification of our society Christian Petit, CEO Investora 18 September 2024
Slide 2: 1. Harnessing the power of global megatrends
1. Harnessing the power of global megatrends
Slide 3: Global megatrends
Global megatrends Emerging megatrend catalysts Infrastructure will be and key drivers central to process x2 Climate Increasing Technological Total grid capacity needs change energy demand advancements to double by 2050 $740 billion Transition from Cost of renewable Policies & carbon-heavy energy inc
Slide 4: Swiss objectives and measures
Swiss objectives and measures 1. Securing electricity & energy supply Swiss building heating method 2.Switzerland: CO2 net zero by 2050 Renewable and with carbon-reduction targets by electric Renewable economic sectors and electric ➔Buildings: 100% Fossil ➔Transport: 100% ➔Industry: 90% Mesures take
Slide 5: Switzerland's 2050 electricity equation
Switzerland’s 2050 electricity equation Swiss electricity consumption (TWh/yr) Swiss electricity generation (TWh/yr) SFOE/VSE/SCCER-SoE SFOE/Mantelerlass 100 100 85 TWh Other 2 renewable 90 TWh 66 TWh & thermal 80 76 TWh 80 5 Wind 3 60 TWh 0.2 39 60 60 5 Solar 35* 40 40 Hydro 20 20 39 23 Nuclear 0 0
Slide 6: Romande Energie is driving green electrification in Western Switzerland
“Romande Energie is driving green electrification in Western Switzerland” 6
Slide 7: 2. Local player with a pan-European footprint
2. Local player with a pan- European footprint
Slide 8: Strong diversified generation sources in Switzerland and across Europe
1st Strong diversified generation electricity supplier in Western Switzerland sources in Switzerland and across Europe GERMANY 5th FRANCE SWITZERLAND HUNGARY electricity distributor in CH ITALY BULGARIA PORTUGAL SPAIN ALPIQ EOS NER RE 8
Slide 9: A hybrid, balanced business model
A hybrid, balanced business model 2023 revenues ENERGY SOLUTIONS GRIDS 53% • Spans the energy value • Pillar of Group’s chain, from generation to profitability and source 31% marketing of stability • Partly regulated • Regulated margins – 16% • Four main business lines: captive customers o Energy ge
Slide 10: Achievements 2021-2023
Achievements 2021-2023 CHF 505m invested over the Integrating data and AI into last three years in renewable our processes and solutions: energies and grid 149,000 smart meters installed Accompanying the electric car + 111 GWh in power generation market: ~14,500 pre-equipped + 13 GWh in thermal gene
Slide 11: 3. Sustainable and solid financial model
3. Sustainable and solid financial model
Slide 12: Resilient, cash-generating business model
Resilient, cash-generating business model Revenues 2019-2023 EBIT 2019-2023 1 000 120 928 CHF 79m 900 100 800 746 700 80 600 614 522 551 60 500 400 5-year average net profit 40 300 200 20 100 Net margin of 11% with contribution from 0 0 2019 2020 2021 2022 2023 associates 2019 2020 2021 2022 2023 +
Slide 13: The pillars of our sustainability commitment
The 3 pillars of our sustainability commitment Economic Social Environmental ✓CHF 250m of green ✓ 80% of employees ✓ -14% carbon intensity financing since 2022 trained in sustainability 2023 vs. 2020 by end-2024 ✓Decarbonisation ✓ SBTi targets for EBIT-margin targets ✓ 1% of EBIT dedicated to reduci
Slide 14: 4. Transformational value-creation strategy to boost productivity and financial performance
4. Transformational value-creation strategy to boost productivity and financial performance
Slide 15: Harnessing the power of global megatrends in Switzerland
Harnessing the power of global megatrends in Switzerland 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Strategy 2021 – 2026 /2027 Decarbonation and market liberalisation Update 2.0 Security of supply and reducing fossil fuel imports Strategy 2030 (Update 3.0) Flexibility, Storage, Productivity V
Slide 16: 10 major strategic initiatives linked to 2030 strategy
10 major strategic initiatives to attain our objectives linked to 2030 strategy Collective housing Become a pivotal player in decarbonisation decarbonisation Customer Rank among the best suppliers in CH Romande Energie Services 3.0 solutions Energise the digital transformation Best-in-class kW
Slide 17: A transformational value creation strategy
A transformational value creation strategy Best-in-class for the Economic Flexibility & storage supply of kWh performance ➔Profitable and ➔Improving operating diversified revenue ➔Secure IRR of CAPEX margins by reducing generation using the alloted to power Cost-to-Serve Group's existing generation
Slide 18: 5. Growth strategy to harness increased returns
5. Growth strategy to harness increased returns
Slide 19: CAPEX of CHF 1.4bn
CAPEX of CHF 1.4bn Strategy 2021-2026 >2027 +42% +12% 2021 2022 2023 TOTAL CAPEX CHF m 126 179 200 505 100% PROJECTION 2026→2027 CHF m CHF 60m 161 32% Other Heating 11% networks 21% Grids 32% CHF m Power CHF generation 220 44% Power 88m generation 36% Grids CHF m CHF 83 16% CHF 1.4bn 39m Heating net
Slide 20: Drastic increase in our capacity by 2030
Drastic increase in our capacity by 2030 Sustaining the pace of our investments Electricity generation portfolio Heat generation portfolio Hydro Wind Solar Wood Heat pumps Geothermal Other long-term contracts GWh/yr GWh/yr 1 800 350 1 600 300 1 400 250 1 200 1 000 200 800 150 600 100 400 50 200 0 0
Slide 21: Return on investment in a hybrid model
Return on investment in a hybrid model Solar generation in Switzerland Starting up November 2020 Duration 25 years 1. Non-regulated investments Project IRR 5.2% 5.2% Market IRR (2021-2027 Strategy) Payback 15 years Electricity 4.5-5.5% District heating in Switzerland Heat 5.0-6.0% Starting up Octobe
Slide 22: 6. EOS and ALPIQ supporting financial performance
6. EOS and ALPIQ supporting financial performance
Slide 23: Diversified assets across Europe
Diversified assets across Europe Production (in GWh) 2023 % Production (in 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% Total production capacity 860 100% T
Slide 24: EOS – a significant bottom-line contribution
EOS – a significant bottom-line contribution ROMANDE ENERGIE Valuation 2023 Net profit contribution 33.33% 1st half 2023: 29.71% CHF 583m CHF 63m value of interest in EOSH sh. equity (CHF 445m in 2022) 1st half 2024: CHF 48m 100% Owners of diversified electricity generation infrastructure, mostly fr
Slide 25: 7. Romande Energie: a unique value proposition in the Swiss market
7. Romande Energie: a unique value proposition in the Swiss market
Slide 26: Momentum from infrastructure
Momentum from infrastructure ➔ Huge untapped growth reserves ➔ Resilient, hybrid and profitable business model ➔ Value-enhancing growth strategy ➔ CAPEX driving future earnings ➔ EOS & Alpiq financial contributions ➔ Stable dividend policy 26
Slide 27: Thank you for listening
Thank you Christian Petit for listening Chief Executive Officer
Romande Energie Holding — Investor Presentation (September 2024) on 6ix