Romande Energie Holding SA · SIX:REHN
Romande Energie Holding SA — FY2021 Earnings Presentation
44 slides from Romande Energie Holding SA's earnings presentation, Apr 12, 2022
Slide 1: Steady in the Storm
STEADY IN THE STORM Investor meeting, Zürich, 12 April 2022
Slide 2: Summary
SUMMARY April 2022 Environment Update on 2021-2026 strategy EOS Holding Financial results Sustainability report Key messages Next steps Q&A 2
Slide 3: Environment
ENVIRONMENT 3
Slide 4: 2021: One Record After Another
2021: ONE RECORD AFTER ANOTHER €346 per Price trends in the baseload calendar product in year n+1 MWh from 2006 to 29 March 2022 Ukraine crisis Movement in natural gas price Movements Global financial in carbon Surge in crisis prices commodity prices in the €91 per MWh Economic 2000s Fukushima recov
Slide 5: Multiple Causes
Romande Energie in the eye of the storm MULTIPLE Demand for Energy CAUSES energy supply Regulation Economic environment Geopolitical Fundamentals (gas, environment coal, oil, CO2) Weather Structural factors (long-term impact) Cyclical factors (short-term impact) 5
Slide 6: Switzerland's 2050 Electricity Equation
SWITZERLAND’S 2050 Swiss Energy Strategy raises questions 2050 ELECTRICITY EQUATION consumption generation Electricity consumption in Switzerland (TWh) 100 Electricity generation in Switzerland (TWh) 100 90 90 90 +50% 80 13 80 70 ? 70 60 60 34 Autres Others 60 50 Solaire Solar 50 41 Hydraulique H
Slide 7: Update on our 2021–2026 Strategy
UPDATE ON OUR 2021–2026 STRATEGY 7
Slide 8: How does RE intend to decarbonise Romandie?
RE’s uniqueness HOW DOES RE INTEND Sustainable Acting Now finance TO DECARBONISE GHG Local authorities and property managers audits ROMANDIE ? Commune Rénove 3. Click & ELECTRICTY Home as Households charge GENERATION v a Service & HEATING Our three key decarbonisation Multi-fluid drivers: contractin
Slide 9: Key Driver 1: Advices & Services – Commune Rénove
KEY DRIVER 1: Speed up building renovations with “Commune Rénove” ADVICES & Local authorities & property managers segment SERVICES • Tailored made support to increase building energy efficiency • Energy audits • Optimised renovation scenarios • Plan ahead for regulatory changes • Financial planning
Slide 10: Key Driver 1: Ma Commune et moi
Decarbonisation coaching programme for Swiss KEY DRIVER 1: households “Ma Commune et moi” ADVICES & SERVICES Local authorities segment • Coaching programme • Environmental impact reduction • Citizen-led contribution • Public authorities’ climate objectives • Increase in local population’s quality of
Slide 11: Romande Energie Services
Romande Energie Services KEY DRIVER 1: TOP THREE energy services provider in Western ADVICES & Switzerland SERVICES NE FR VD A 2021 80 115 450 GE Acquisition Bosson-Pillet and employees employees Bosson-Pillet J.M. Lambelet RES – RES and J.M. employees Geneva/ VS Lambelet Neuchâtel 11
Slide 12: Key Driver 2: Solar energy contracting
KEY DRIVER 2: Solar energy contracting TURNKEY B2B & SOLUTIONS Local authorities/property segments • 26 installations completed in 2021 • Across Switzerland • 16 sites and 6.2 MWp, a record year for the Group in terms of capacity commissioned 2021 EPT • 9 MWp, a record level of sales +CHF 250m under
Slide 13: Key Driver 2: Click & Charge
Click & Charge: private charging point for your parking KEY DRIVER 2: space TURNKEY Property segments SOLUTIONS • Pre-installation • Energy management +70 car parks kitted out in • Sign-up 2021 2021 EPT • Invoicing 2026 EPT 320 contracts sealed covering over 2,500 2021 EPT spaces 13
Slide 14: Key Driver 2: Home as a Service
Home as a Service: a highly efficient heating system for KEY DRIVER 2: everyone TURNKEY Consumer segment SOLUTIONS • 4,350 simulations since 2020 • 650 proposals • 193 firm orders 2026 EPT Partnership Average reduction in witha dozen carbon footprint per 2021 EPT local companies order EXTENDED TO PH
Slide 15: Key Driver 3: Generation Goals
KEY DRIVER 3: 2021-2026 GENERATION GOALS Power generation Thermal generation 9 projects 2021 won in 2021 + 23 assets • Products 15
Slide 16: Accomplishments
2021 ACCOMPLISHMENTS 16
Slide 17: EOS Holding
EOS HOLDING 17
Slide 18: Ownership Structure and Shareholdings
OWNERSHIP STRUCTURE AND SHAREHOLDINGS 29.71%, the largest shareholder 33.33% 100%, currently being spun off Activity EOS NRE • Germany • France • Portugal • Switzerland (AGEPP, EnergyPier) 18
Slide 19: NRE Activities
EOSH outside Switzerland, year-end 2021 NRE ACTIVITIES 2021 – 512 MW in installed capacity, generation: 800 GWh • Business model: high leverage (70– 80%) with no-recourse debt that is fully repaid at the end of the period of subsidised tariffs (15–20 years). 24% 76% 24 wind farms 16 solar power plan
Slide 20: Financial Results (EOS NRE)
FINANCIAL • CHF 300m invested in NREs since 2011 in line with company’s framework conditions (systematic risk mitigation, profitability, IRR) RESULTS • At year-end 2020, the equity IRR was 9.2% EOS NER (en MCHF), excluding Alpiq 2021 Revenue 91,8 EBIT 31,2 Net profit 25,8 • Indicative valuation of E
Slide 21: Outlook for NRE
OUTLOOK FOR EOSH’s strategic plan out to 2030 NRE Rebalancing between solar and wind 420 MW in wind Geographical Execution of the strategy 400 MW in solar diversification CHF 150m to invest in EBITDA 50%/50% equity stakes Management and Viable business model and development: EOS NER financially soun
Slide 22: Financial Results
FINANCIAL RESULTS —— —_=
Slide 23: Highlights 2021
HIGHLIGHTS 2021 CAPABLE OF ADAPTING IN DIFFICULT CONDITIONS Revenues increase 12%* to CHF 614m. Positive contribution from RE Services BU Solid operating results, in line with estimates (- 9%*) Impact from energy margin cushioned by diversified generation operations Further increase in cash flow fro
Slide 24: Balanced Business Model
BALANCED Pressure on energy margin offset by generation diversification BUSINESS MODEL EOSH Operating Positive effects + CHF 11m profit without Regulated ALPIQ Drop in regulated customer tariffs demand France FMHL Activities Costs Own generation of market procurement Energy margin CHF -11m 24
Slide 25: Energy Solutions BU
ENERGY Resilient in a market affected by runaway prices SOLUTIONS BU 2021 CHF 000 2021 2020 Exposure to price surge in power markets % change RE sources from markets but does not trade energy Net revenues 270 231 261 284 3% Stronger sales of thermal energy: +CHF 9m Gross profit 99 055 95 422 4%
Slide 26: Grids BU
GRIDS BU Mainstay of Group’s profitability and a guarantee of stability 2021 CHF 000 2021 2020 % change Acquisition 125kV high-voltage line, Riviera – Chablais region Net revenues 240 568 235 582 2% Consolidation of Romanel-sur-Lausanne grid Gross profit 185 461 184 013 1% Growth in non-regula
Slide 27: Romande Energie Services BU
Consolidation of operations ROMANDE ENERGIE Able to handle 50% growth and generate profitability SERVICES BU at the same time 2021 Net revenues CHF 142m (+50%) ½ organic growth + ½ acquisition-driven growth Remarkable operating results Turning a profit (1%) despite tough operating conditions
Slide 28: EOSH / Alpiq
EOSH / ALPIQ Alpiq heavily impacts the Group’s net profit 31.12.2021 FY CHF m FY earnings earnings +20 -271 Compre- 2021 Compre- hensive hensive -13 +3 income -10 earnings -126 +9 Other Other income income (via equity) (via equity) 2020 +145 -11 ALPIQ +11 EOSH + 8 Total + 19 28
Slide 29: Financially Stable and Solid in a Complex Environment
FINANCIALLY STABLE AND SOLID IN A COMPLEX ENVIRONMENT CHF m 614 2020 2021 569 One-off item CHF 18m 551 (* like for like) 323 332 304 149 133 131 77 87 53 22 69 35 58 55% * 54% 24% * 22% 11% * 9% (4) 13% * 6% Share of profit Net profit Net revenues Gross profit EBITDA EBIT from associates for the per
Slide 30: Cash Flow
CASH FLOW Further rise in cash flow from operating activities CHF m 145 145 Investing activities Financing activities CAPEX and Cash (1) Cash flow Dividends paid Cash (1) acquisitions Other Debt as at from as at 01/01/2021 operations 31/12/2021 ¹ Cash and cash equivalents 30
Slide 31: Capex
CAPEX Strategic background STRATEGIC BACKGROUND CHF m 300 250 Growth Maintenance 200 126 51% 49% 2021 Strategy forecasts 2022-2026 31
Slide 32: Funding the New Strategy CHF 1.4bn
FUNDING THE Bonds- NEW STRATEGY Capital markets Strategy for Cash Bank 2021–2026 generation financing CHF1.4bn (cash flow) Co- investment 32
Slide 33: CFO Message
CFO MESSAGE Cash generation and shareholder returns 1 Increase in cash flow from operations covering of payment constant dividend Dividend unchanged at CHF 36 Strategy for 2021–2026 2 Investment plan at historic levels for the Group, targeting growth and innovation External financing (sustainability
Slide 34: Sustainability Report
SUSTAINABILITY REPORT 34
Slide 35: Strategy for 2021–2026
STRATEGY FOR Our strategy is based on 2021–2026 the three sustainable-development pillars How do we measure these targets ? • Total EBIT • Employee NPS • Carbon intensity of revenue • Share of non-monopoly revenue • Customer NPS • CO2 savings achieved by our • ROIC • Supplier NPS customers (currentl
Slide 36: Our 2021 Highlights
OUR 2021 HIGHLIGHTS Rise in the employee NPS Desired customer experience vision drafted Launch of the Supplier charter HVAC business drafted A- ESG rating achieved Sustainability Greenhouse gas report compliant emission inventory by with GRI BU and internal standards carbon cost estimate 36
Slide 37: 2021 GHG Inventory
• 2021: 7% decline in the carbon intensity of our revenue per CHF versus 2020 2021 GHG • Strategic target attained but efforts still required on purchasing-related INVENTORY carbon emissions • More District Heating installations in service (fossil portion stems from back-up gas) • Absence of leakage
Slide 38: Our Next Milestones
OUR NEXT MILESTONES Economic Social Environmental pillar pillar pillar - Continuing innovation focused on - Definition of the Group’s core - Reduction in our carbon “Energy efficiency improvements” purpose footprint: focus on purchasing - Launch of an “Electric mobility” - Launch of an internal trai
Slide 39: In Summary
IN SUMMARY 39
Slide 40: Our Key Messages
OUR KEY MESSAGES • OUR CHALLENGES: ENERGY SUPPLY AND ENERGY TRANSITION IN SWITZERLAND • OUR RESPONSE: IMPLEMENT OUR STRATEGY WITH CHF 1.4BN IN INVESTMENTS OUT TO 2026 • OUTCOME: ROMANDE ENERGIE, AN INNOVATIVE AND RESILIENT GROUP 40
Slide 41: Outlook
OUTLOOK • EXTERNAL FINANCING • DEPLOYMENT OF OUR 2021-2026 STRATEGY • MODEST INCREASE IN EBIT EXPECTED 41
Slide 42: 2022 Financial Schedule
2022 FINANCIAL SCHEDULE 10 May 2022 Closure of the share register 24 May 2022 Annual General Meeting 27 May 2022 Ex dividend date 31 May 2022 Dividend payment 5 September 2022 Publication of first-half 2022 results 42
Slide 43: Q&A – Discussion
Q&A – DISCUSSION
Slide 44: 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 Tel.: +41 21 802 97 00 Tel.: +41 21 802 96 18