Romande Energie Holding SA · SIX:REHN
Romande Energie Holding SA — FY2006 Earnings Presentation
24 slides from Romande Energie Holding SA's earnings presentation, Mar 28, 2007
Slide 1: Romande Energie 2006 Results
ROMANDE ENERGIE 2006 Results Morges, 28 March 2007 - Pierre-Alain Urech, CEO / Denis Matthey, CFO © Romande Energie 1
Slide 2: Contents: Romande Energie in 2006
CONTENTS: ROMANDE ENERGIE IN 2006 1. More competitive, more present and even more responsible 2. Results up to expectations 3. Outlook for 2007 © Romande Energie 2
Slide 3: 1. Romande Energie in 2006
1. Romande Energie in 2006 More competitive, more present and even more responsible © Romande Energie 3
Slide 4: Romande Energie more competitive
ROMANDE ENERGIE MORE COMPETITIVE Price cuts for customers: Narrower Higher electricity margins prices -46 CHF million over two years Cost control Enhancement of product range © Romande Energie 4
Slide 5: Romande Energie more present
ROMANDE ENERGIE MORE PRESENT HELPING TO SHAPE THE FUTURE OF THE ELECTRICITY MARKET LOCALLY AND IN SWITZERLAND AS A WHOLE Co-founder of Spontis SA Ongoing reflections and discussions on cooperation and partnerships MORE FOCUSED COMMUNICATIONS Meetings with customers Image-building campaign: proximity
Slide 6: Romande Energie even more responsible
ROMANDE ENERGIE EVEN MORE RESPONSIBLE CONTINUED INVESTMENT CHF 60 million invested in the grid Capital appropriations for production sites SUSTAINABLE DEVELOPMENT Creation of Romande Energie Renouvelable SA Simplified and enhanced product offering of green energy Increased awareness: Paléo Festival,
Slide 7: 2006 Results: up to expectations
2. 2006 Results: up to expectations Price cuts for customers (lower net revenues) to make us more competitive Sound balance sheet, high investments, good cost control Enterprise value up 70% since 2003 Share price up 29.8% in 2006 © Romande Energie 7
Slide 8: Romande Energie improving its competitiveness
ROMANDE ENERGIE IMPROVING ITS COMPETITIVENESS Key figures CHF 000 31.12.2006 31.12.2005 31.12.2004 31.12.2003 31.12.2002 Net revenues 466 068 482 096 480 192 477 837 453 657 Gross margin 268 071 292 482 323 315 322 396 317 419 As % of net revenues 57.52% 60.67% 67.33% 67.47% 69.97% Operating expense
Slide 9: Electricity price cuts weigh on operating margins
THE ELECTRICITY PRICE CUTS (WORTH CHF 46 M IN 2005/2006) MADE BY ROMANDE ENERGIE BENEFIT ALL OUR CLIENTS BUT WEIGH ON OUR OPERATING MARGINS Key figures 31.12.2006 31.12.2005 31.12.2004 31.12.2003 31.12.2002 EBITDA as % of net revenues 30.15% 33.59% 38.00% 38.09% 39.09% EBIT as % of net revenues 20.7
Slide 10: High level of investment in fixed assets
A HIGH LEVEL OF INVESTMENT IN FIXED ASSETS ENABLES US TO ENSURE THE COMFORT AND WELL-BEING OF ALL OUR CLIENTS Cash flows CHF 000 2006 2005 2004 Net income for the year allocated to parent company 96 093 116 208 118 508 shareholders Reversal of non-cash items, interest and taxes paid 19 125 25 795 26
Slide 11: A solid balance sheet for market deregulation
A SOLID BALANCE SHEET FOR MARKET DEREGULATION Condensed consolidated balance sheet CHF 000 31.12.2006 31.12.2005 31.12.2004 ASSETS Current assets 428 362 415 253 319 502 Non-current assets 1 439 525 1 226 004 1 164 570 Total assets 1 867 887 1 641 257 1 484 072 LIABILITIES AND SHAREHOLDERS' EQUITY C
Slide 12: Long-term financial assets double in 5 years thanks to EOS
LONG-TERM FINANCIAL ASSETS DOUBLE IN 5 YEARS THANKS TO EOS Key figures CHF 000 31.12.2006 31.12.2005 31.12.2004 31.12.2003 31.12.2002 Free Cash Flow (FCF) 58 594 103 696 84 663 ( 4 964) 85 000 Non-current assets tangible fixed assets 744 329 729 726 707 241 713 137 744 904 long-term financial assets
Slide 13: Enterprise value up 70% since 2003
ENTERPRISE VALUE UP 70% SINCE 2003 Enterprise value CHF 000 31.12.2006 31.12.2005 31.12.2004 31.12.2003 Market capitalization 1 836 178 1 414 561 1 271 454 977 295 Minority interests 40 182 39 878 32 417 30 667 Financial debts less cash and cash equivalents ( 95 316) ( 121 784) 26 323 48 023 Enterpr
Slide 14: Significant rise in share price since 2000
SIGNIFICANT RISE IN SHARE PRICE SINCE 2000 Main shareholders at 31 January 2007 Vaud canton * 38.60% Vaud municipalities * 14.01% Banque Cantonale Vaudoise * 0.87% ATEL 10.00% Group E 5.80% Romande Energie Group 3.46% Other shareholders 27.26% 100.00% 2006 High CHF 1 669.00 * parties to a shareholde
Slide 15: Valuation in line with sector average in Switzerland
VALUATION OF ROMANDE ENERGIE SHARE IN LINE WITH THE SECTOR AVERAGE IN SWITZERLAND Key figures 31.12.2006 31.12.2005 31.12.2004 31.12.2003 31.12.2002 PER 19.2 12.1 9.7 6.9 3.9 Swiss average (Bloomberg) 20.0 Price / FCF 31.3 13.6 15.0 n/a 6.6 Price / Book value 1.3 1.2 1.2 1.1 0.7 Enterprise value* /
Slide 16: 5th increase in dividend and strong rise in payout rate
5TH INCREASE IN DIVIDEND AND STRONG RISE IN PAYOUT RATIO © Romande Energie 16
Slide 17: Creating long-term shareholder value: goal achieved
CREATING LONG-TERM SHAREHOLDER VALUE: GOAL ACHIEVED © Romande Energie 17
Slide 18: 3. Outlook for 2007
3. Outlook for 2007 Last straight line before market deregulation => Stepping up implementation of the OSER strategy © Romande Energie 18
Slide 19: Outlook for 2007: important projects
OUTLOOK FOR 2007 Important projects Combined cycle gas turbine power stations: Chavalon and Cornaux Romande Energie Renouvelable Asset management New training concepts for managers Market deregulation Cooperation and partnerships 2008 product offering => Romande Energie is ready for market deregulat
Slide 20: Outlook for 2007 (2): rational use of energy
OUTLOOK FOR 2007 (2) Rational use of energy at Romande Energie Internal awareness campaign: 9 Electricity: changing one's behaviour 9 Heating and climate control: close doors and windows 9 Petrol: non-aggressive driving Measures imposed 9 Optimisation of lighting systems for buildings 9 Optimisation
Slide 21: Financial calendar 2007
FINANCIAL CALENDAR 2007 27 March 2006 Results 28 March Presentation of 2006 Results 25 May Annual General Meeting 31 May Ex dividend 31 August 2007 First-Half Results © Romande Energie 21
Slide 22: 4. Hot off the press
4. Hot off the press Romande Energie teams up with the Zahnd sawmill (Rueyres) Objective: making the best use of wood waste (220,000 m³/year) Production of green power (biomass) and wood granules for heating Work underway from 2007 to 2009 => implementation in 2009 Volume of 20 GWh/year => electrici
Slide 23: Thank you for your kind attention
Thank you for your kind attention We will take your questions now © Romande Energie 23
Slide 24: Contact: Groupe Romande Energie Holding SA
Contact: Groupe Romande Energie Holding SA Rue de Lausanne 53 Case postale CH-1110 Morges 1 Head of Investor Relations: René Lauckner Phone: +41 21 802 95 24 Fax: +41 21 802 95 18 E-Mail: rene.lauckner@romande-energie.ch This English translation is based on the French original. In case of doubt the