Romande Energie Holding SA · SIX:REHN
Romande Energie Holding SA — Debt Investor Presentation (June 2022)
46 slides from Romande Energie Holding SA's debt investor presentation, Jun 22, 2022
Slide 1: Investor presentation, 22 June 2022
Investor presentation, 22 June 2022
Slide 2: Slide 2
Slide 3: Agenda
June 2022 Activities, Achievements and Projects Group overview – 2021-2026 Strategy Green Finance Framework Financial overview Transaction overview Q&A 3
Slide 4: Activities, Achievements and Projects
ACTIVITIES, ACHIEVEMENTS AND ~PROJECTS
Slide 5: Playing a leading role in Western Switzerland's energy transition
Romande Energie is committed to playing a leading role in Western Switzerland’s energy transition Electrician Energeticist Decarbonation actor The Group remains an Electrician/Energeticit while becoming a major decarbonation actor seizing new opportunities and championing new solutions 5
Slide 6: Solid shareholder structure, resilient share price
Solid shareholder structure Resilient share price over time 58% public owners Vaud Canton Other 38.60% 32.50% Other public Treasury shareholders shares 18.93% 9.97% Source : Romande Energie 6
Slide 7: Over 300,000 direct clients
The Group’s main activities are the generation, distribution and marketing of electrical and thermal energy as well as energy services Over 300’000 direct clients Core energy In Vaud Canton, Valais, Fribourg and 4businesses Geneva Generation (electricity and thermal energy) Distribution Marketing En
Slide 8: Business units and growth drivers
• Builds, operates, maintains and manages power distribution installations (regulated) • Fibre optic network • All services encouraging shift to cleaner energy for households, businesses and local authorities Our growth and financing • Spans the entire kWh chain, i.e. generation and needs will come
Slide 9: Generation assets
H J 65 units 41 units 14 units 7 units 29 units 2 units facility under construction 9
Slide 10: Swiss generation asset overview
36 Hydro and small-scale 120 Solar installations hydro units 1 Wind farm 2 Biomass units 20 District heating assets 10
Slide 11: Investments in France
Investments in France support the diversification of our profitability sources; however, the energy produced is sold locally and will neither power our Swiss facilities, nor be part of the green bond. 13 assets Hydro 102MW Solar 16 projects >600MW Wind 11
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Slide 13: Making Switzerland carbon neutral by 2050
Making Switzerland carbon neutral by 2050 while also phasing out nuclear power… • produits 13
Slide 14: 2050 Swiss Energy Strategy raises questions
2050 Swiss Energy Strategy raises questions Swiss electricity consumption Generation Electricity consumption in Switzerland (TWh) 100 Electricity generation in Switzerland (TWh) 100 90 90 90 +50% 80 13 80 70 ? TBD 70 60 60 ▪ Other Autres 60 34 ▪Solaire Solar 50 50 41 ▪Hydraulique Hydro 40 40 ▪Eolien
Slide 15: Supporting the Vaud Canton Agenda 2030
Romande Energie supports the Vaud Canton Agenda 2030 published in June 2021, in particular its energy strategy through… 3 sustainable development pillars 8 sustainable development goals firmly anchored in our strategy 15
Slide 16: RE's uniqueness: services and solutions
RE’s uniqueness Sustainable Act Now finance GHG Local authorities and property managers audits Ma Commune Commune et moi Rénove 1. ADVICE & SERVICES Click & Households Home as Electricity & charge a Service heatingv Multi-fluid contracting 2. TURNKEY SOLUTIONS Swiss solar plan Partners • 3. ELECTRIC
Slide 17: Power generation, Thermal generation
Power generation Thermal generation • Generation 17
Slide 18: District heating reduces carbon output of real estate
District heating reduces carbon output of real estate 3 new district heating plants in 2020 (Bussigny, Grandson and Morges Lac) Generation: 6.5 GWh Creation of EcuCAD (Ecublens)2021 and EnergeÔ FTEs (Nyon) Forthcoming: Montreux district heating network 2026 FTEs 18 18
Slide 19: Green Finance Framework
GREEN FINANCE FRAMEWORK
Slide 20: A- ESG rating achieved
A- ESG rating achieved Sustainability Greenhouse gas report compliant emission inventory by with GRI BU and internal standards carbon cost estimate Desired Rise in the Supplier charter customer Launch of the employee NPS disclosed experience CVC business vision drafted 20
Slide 21: Group certifications
5 GROUP S Our integrated management system consistently aims to boost the CERTIFICATIONS performance of our services, harness the skills of our employees and to meet the expectations of our customers. It encompasses health & safety, sustainable development and responsibility to society. Certificatio
Slide 22: Objective of framework for green financing
• Objective of framework for green financing • Achieve the desired transparency • Framework core components Scan of RE • Use of proceeds Green • Process for project evaluation and selection framework • Management of proceeds • Reporting • Based on Green Bond Principles issued by International Capita
Slide 23: Green projects: renewable energy
Investments in green projects focusing on renewable energy • Wind power: onshore wind turbines Renewable • Hydro power energy • Small hydroelectric plants with less than 10 MW generation capacity • Medium-scale hydroelectric plants (i.e. 10 to 1,000 MW generation capacity) • Solar energy • Open-air
Slide 24: Green projects: energy efficiency
Investments in green projects focusing on energy efficiency Energy efficiency • Development of thermal energy (district heating) • Biomass CHP (Combined and Heat Power) 24
Slide 25: Green projects: clean transportation
Investments in green projects focusing on clean transportation Clean transportation • Infrastructure for clean energy vehicles • Pre-equipment and installation of private charging points for parking spaces • Hydrogen production plant to provide green hydrogen for heavy mobility • In the short term:
Slide 26: Sainte-Croix wind farm (VD)
Sainte-Croix wind farm (VD) • First-ever wind farm in Vaud canton – a project championed by Romande Energie since 2008. The 6 turbines will stand at an elevation of 1,200 metres. • Construction is taking place between 2021 and 2023: Renewable • 2021-2022: site preparation energy • 2023: installation
Slide 27: MBR Project (Massongex-Bex-Rhône)
MBR Project (Massongex-Bex-Rhône) in partnership with Forces Motrices Valaisannes and Services Industriels de Lausanne • The MBR project involves the construction of a run-of-the-river power plant to produce annually clean, renewable and indigenous hydraulic energy. Renewable energy • The project co
Slide 28: Solar Energy Contracting (example in Geneva)
Solar Energy Contracting (example of a project in Geneva) • Photovoltaic equipment fitted to the roof of a 180-unit rental apartment block built in the 1970s Renewable energy • Duration of worksite: 4 month (permit expected in late 2022 for work to be carried out in 2023) Solar energy 28
Slide 29: Montreux district heating network (Mont'CAD)
Montreux district heating network (Mont’CAD) Morges example • This district heating network will be a 5th-generation asset which will be thermally balanced by pumping water from the lake • Construction is taking place between 2021 and 2035: Energy efficiency • 2023 – work beginning (pumping station
Slide 30: Process for managing proceeds from green financings
Process for managing proceeds from green financings Refinancing of existing projects Financing of new in scope projects Refinancing of existing green projects not older Investment of Green Bond proceeds within 3 years than 3 years than the Green Bond issue date of issuance in green projects Green Bo
Slide 31: We are committed to transparency
We are committed to transparency • Annual publication of our Green Finance report on our website • The 4 key components of our reporting: • The list of Eligible Green Projects (re-)financed with a description. • The aggregated amount of allocation of the net proceeds to the Eligible Green Projects.
Slide 32: Financial Overview
FINANCIAL OVERVIEW ———$A -
Slide 33: Group Romande Energie
GROUP ROMANDE ENERGIE - Growth in renewable investments, exclusively will improve operational performance and increase cash-flow generation, with a focus on diversification and resilience. - Growth goes hand in hand with a focus on operational efficiency and digitalisation in order to improve Group’
Slide 34: Grid, Energy Solutions and Services profitability
GRID - Pillar of Group’s profitability and a guarantee of stability. - Regulated grid WACC : 3.83%. ENERGY SOLUTIONS - Regulated return CHF 75 per customer (CHF 60.- as per 1.1.2024) - Investment’s IRR in line with market’s expectations, with an industrial ROIC - 100% of revenues since commissionnin
Slide 35: Revenues and EBITDA
Revenues (CHFm) EBITDA (CHFm) / 614 EBITDA margin (%) 598 593 551 22.4% 21.9% 23.7% 21.6% 133 131 131 133 2018 2019 2020 2021 2018 2019 2020 2021 2021 Net revenues Energy 2021 EBITDA Energy Energy Services Energy Solutions Services 2% Solutions 28% 22% 41% Grids 70% Grids 37% 35
Slide 36: Total assets and equity ratio
Total Assets (CHFbn) Equity as % of total assets 83.0 84.0 82.0 83.0 2.2 2.3 2.3 2.2 2018 2019 2020 2021 2018 2019 2020 2021 36
Slide 37: Operational cash flow
Romande Energie has a large capacity to generate cash flow from operations and cover its maintenance CAPEX and financing activities (dividend and debt service) Operational cash-flow 160 141 145 138 140 120 101 100 80 69 60 40 20 - 2017 2018 2019 2020 2021 37
Slide 38: Constant dividend over time
Constant dividend over time. Dividend pay-out ratio is increasing mainly because of non-cash items Dividend (CHFm) / Dividend pay-out ratio (%) Dividend per share (CHF) 120 104 106 100 36.0 36.0 36.0 36.0 36.0 80 37.1 37.1 37.9 36.9 36.9 69 60 43 40 32 20 - 38 2017 2018 2019 2020 2021 2017 2018 2019
Slide 39: Strategic background: growth capex 2021-2026
Strategic background CHF m 300 250 GROWTH CAPEX 2021-2026 200 CHF 422 29% 126 CHF 1 009 71% Growth Maintenance 2021 Strategy forecasts 2022-2026 39
Slide 40: Financing strategy 2021-2026, CHF1.4bn
Maximum leverage of 2.5x net debt / EBITDA Bonds- Capital markets Strategy for Cash Bank 2021–2026 generation financing CHF1.4bn (cash flow) Co- investment 40
Slide 41: Financially stable and solid in a complex environment
Financially stable and solid in a complex environment 2021 CHF 000 2021 2020 ▪ Exposure to price surge in power markets restated % change RE sources from markets but does not trade energy Net revenues 614 481 551 054 12% ▪ Growth in non-regulated business (higher contribution margin) Gross profit 33
Slide 42: Further rise in cash flow from operating activities
Further rise in cash flow from operating activities 2021 CHF 000 2021 2020 ▪ Cash flow from operating activities rose further in 2021, to restated % change CHF145m – the highest figure for the Group since 2015 Net cash flow from operating activities 145 082 138 633 4.6% ▪ Net acquisitions of non-cur
Slide 43: Transaction Overview
eS “TRANSACTION * OVERVIEW 43
Slide 44: Key terms & conditions
Key terms & conditions Issuer Romande Energie Holding SA Issuer rating Aa stable [fedafin], A+ stable [UBS] (*) Target size Minimum CHF 100 million Maturity Targeting long term maturity Format Public senior unsecured Green Bond Denomination CHF 5,000 nominal and multiples thereof Use of proceeds Fin
Slide 45: Q&A - Discussion
O&A — DISCUSSION
Slide 46: Christian Petit, Nicolas Conne, Audrey Cauchet
Christian Petit Nicolas Conne Audrey Cauchet Chief Executive Officer Chief Financial Officer Chief Sustainability Officer christian.petit@romande-energie.ch nicolas.conne@romande-energie.ch audrey.cauchet@romande-energie.ch Tel.: +41 21 802 97 00 Tel.: +41 21 802 96 18 Tel.: +41 21 802 97 36
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