Romande Energie Holding SA · SIX:REHN
Romande Energie Holding SA — H1 2022 Earnings Presentation
30 slides from Romande Energie Holding SA's earnings presentation, Sep 5, 2022
Slide 1: Meeting the Procurement Challenges
MEETING THE PROCUREMENT CHALLENGES Investor meeting – H1 2022 results, 5 September 2022
Slide 2: Slide 2
Slide 3: Summary
SUMMARY September 2022 Background Tariff increases Ostral Plan Version 2.0 of our 2021-2026 strategy Financial results Conclusion Q&A 3
Slide 4: Background
BACKGROUND 4
Slide 5: Since April 2022, main factors have caused electricity prices to soar
... 4 main factors have caused electricity prices to soar SINCE APRIL 2022… Demand for 3 Availability electricity of power Regulation Economic environment 1 2 Geopolitical Fundamentals (gas, environment coal, oil, CO2) Structural factors (long-term impact) 4 Weather Cyclical factors (short-term impa
Slide 6: Spotlight on these factors
SPOTLIGHT ON THESE FACTORS 1 2 3 4 Geopolitical Fundamentals (gas, Availability Weather environment coal, oil, CO2) of power • War in Ukraine and energy • Surge in gas prices • French nuclear fleet • Drought crunch in Europe hobbled (-50% in August August 22 • Heatwave • Sanctions on gas x2.2 €205 p
Slide 7: Electricity price trends
ELECTRICITY Price trends in the baseload calendar product in year n+1 2006 to end-August 2022 in Germany and Switzerland PRICE TRENDS €630 per MW FR nuclear plants offline €480 per MW War in Ukraine Movements in natural gas prices Electricity price Surge in trends commodity prices in the Economic Gl
Slide 8: Switzerland – implications for energy suppliers
SWITZERLAND – IMPLICATIONS FOR Romande Energie in the eye of the storm ENERGY SUPPLIERS Market environment • Sharp rise in supply costs (especially baseload) • Problems obtaining power from Swiss producers for certain periods of the year (bank guarantees or margin call mechanism too expensive and ri
Slide 9: Tariff increases
TARIFF INCREASES
Slide 10: Tariff increases
TARIFF INCREASES H2* household in Morges (before VAT) * H2 = customer category defined by Elcom: 4 room dwelling with electric cooker, using 2,500 kWh/year and with a 20-amp socket
Slide 11: Ostral Plan
~ OSTRAL PLAN
Slide 12: Federal Govt's Ostral Plan
FEDERAL GOVT’S OSTRAL PLAN Quand I'électricité vient 4 manquer Les mesures potentielles en cas de pénurie d’électricité Appels a réduire la consommation Décision : délégué a I'approvisionnement économique du pays (AEP) Acteurs visés : tous les consommateurs i iterdictions frappant les appareils et O
Slide 13: Call for energy efficiency and sensible usage
CALL FOR ENERGY Electrification of society vs. procurement issues EFFICIENCY AND SENSIBLE USAGE TURNKEY SOLUTIONS ADVICE & SERVICES TRANSFORMATION 13
Slide 14: Version 2.0 of our 2021-2026 strategy
VERSION 2.0 OF OUR 2021-2026 STRATEGY 14
Slide 15: Starting point for version 2.0
STARTING POINT FOR VERSION 2.0 Focus for strategy 1.0 New focus for (September 2021) strategy 2.0 (June 2022) Preparing for full market Shift in Price instability and threat liberalisation by 2026 strategic to security of supply focus
Slide 16: New paradigms
Price instability and threat to security of supply NEW PARADIGMS Prepare grid to take delivery of decentralised power Speed up decarbonisation to reduce dependency on fossil fuels Help reduce risks linked to scarcity and dependency Encourage sensible energy use and simpler lifestyles Boost output fr
Slide 17: New strategic avenues
NEW Brisk development of legacy activities and thermal energy – our strike weapon STRATEGIC AVENUES Grid preparation Hydroelectric plan Thermal energy plan
Slide 18: Examples of achievements in 2022
EXAMPLES OF Romande Energie, a renewable energy producer ACHIEVEMENTS IN 2022 Morges lake pipeline Vuiteboeuf mini-hydropower LN Industries in Champagne Lyreco in Dintikon plant (VD) District heating: 14 projects won or in progress in 2022 Solar power generation: 120 installations in Switzerland (9
Slide 19: Achievements in 2022 – Romande Energie France
ACHIEVEMENTS Romande Energie France IN 2022 Les Mâts d’Eole Annual output 37 GWH (approx. 8,000 households) 4 wind farms in operation (19 turbines) 2 wind farms in Brittany (10 turbines) 2 farms in eastern France (9 wind turbines) 8 hydroelectric power stations 1 solar farm
Slide 20: Financial results
FINANCIAL RESULTS STRONG RESILIENCE OF OPERATIONS GROUP-WIDE 20
Slide 21: H1 2022 highlights
H1 2022 HIGHLIGHTS: ► Generation facilities selling at market rate (CH + F) benefit fully from steadily rising kWh price ► Sharp decline in generation from own installations (-20%) and unchanged customer tariffs relative to 2021 negatively impact energy margin ► Excluding the above impacts (CHF -7m)
Slide 22: Energy Solutions
ENERGY SOLUTIONS IMPACT OF STEADILY RISING KWH MARKET PRICE FMHL: CHF ‘000 Solutions Stable CHF +8m Energy regulated tariffs CHF -5m French assets 30 June 2022 Own CHF +6m generation Net revenues +35% 179 988 -58 GWh / -20% CHF -16m CHF +14m EBIT -68% 4 034 CHF % 2% -7m CHF -21m ► Profitability hit
Slide 23: Price determination mechanism regulated tariffs
PRICE DETERMINATION MECHANISM REGULATED TARIFFS IMPACT ON ENERGY MARGIN Consumption Weather Market conditions Market procurement Own generation Volume/cost Volume/cost Actual supply cost Estimated cost for N Regulated tariff N Actual vs. Regulated Regulated Regulated tariffs N-1 less actual cost est
Slide 24: Mechanism for determining regulated tariffs
MECHANISM FOR DETERMINING REGULATED TARIFFS IMPACT ON ENERGY MARGIN Consumption Weathe Market conditions Market procurement Own generation Volume/cost Volume/cost Actual supply cost Regulated tariff N Actual vs. Estimated cost for N estimated Regulated Regulated less actual cost tariffs N+1 tariffs
Slide 25: Segment reporting
SEGMENT REPORTING SECURITY OF SUPPLY KWH AND MATERIALS CHF ‘000 Grids Energy Romande Energie Solutions Services 30 June 2022 Net revenues +10% 130 015 +35% 179 988 -3% 62 502 EBIT +10% 23 781 -68% 4 034 +146% 75 % 18% 2% 0% ► Grids ► RE Services Higher contribution from Consolidation of positions af
Slide 26: Sharp half-year loss at Alpiq
SHARP HALF-YEAR LOSS AT ALPIQ EBITDA (+37%) 114 Timing mismatch (857) CHF m (temporary) Profit/loss EOS NREs (592) 16 Comprehen (70) +1 Comprehen sive income sive income 30 June 2022 (706) 4 (69) Other income Other income (via equity) (via equity) (114) (12) H1 2021 (adj.) ALPIQ + 10 EOSH + 4 Total
Slide 27: Consolidated results to 30 June 2022
CONSOLIDATED RESULTS TO 30 JUNE 2022 CHF m 347 2021, restated 2022 299 Restatement of Alpiq’s 2021 results 169 167 70 65 45 31 24 20 (64) (46) 57% 48% 23% 19% 11% 7% Share of profit Net profit Net revenues Gross profit EBITDA EBIT from associates for Group
Slide 28: CFO message
► Guidance maintained for 2022 CFO MESSAGE ► Security of supply ► kWh (price and weather conditions) ► Materials (prices and waiting times) ► 2026 investment strategy confirmed ► Funding structure 70 CHF m Investissements Green Bond CHF 100m 60 50 40 Bank Strategy Cash flow credit line from 30
Slide 29: Conclusion
CONCLUSION • OUR CHALLENGES: SECURITY OF SUPPLY AND VOLATILE PRICES • OUR RESPONSE: TAILORED STRATEGY (V 2.0) AND STRONG INVESTMENT (CHF 1.4BN) • RESULT: FIRM COST CONTROL AND A BUSINESS MAKING FASTER INROADS, BOTH GROWING AND RESILIENT 29
Slide 30: Thank you for listening
THANK YOU FOR LISTENING Christian Petit Nicolas Conne Chief Executive Officer Chief Financial Officer christian.petit@romande-energie.ch nicolas.conne@romande-energie.ch T +41 21 802 97 00 T +41 21 802 96 18