Romande Energie Holding Sa · SIX:REHN
Romande Energie Holding Sa — Investor Presentation (February 2002)
26 slides from Romande Energie Holding Sa's investor presentation, Feb 1, 2002
Slide 1: C.Chabanel-P.Broye 01.02.2002/FLT
1 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 2: Table of contents
Table of contents Electricity market in Switzerland Group Strategy CVE RE Financial Review Questions & answers 2 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 3: Specificities of the Swiss electric economy
Specificities of the Swiss electric economy … Monopoly Revenues in Switzerland : ~ 8 bn CHF Taxes due to state and local governments : ~ 2 bn CHF 25’000 employees Equity of electricity companies : 75 % government-owned Investments : 42 bn CHF, mainly financed by public authorities or pension funds 3
Slide 4: Heterogeneous market
… can not be maintained in the future Heterogeneous market ~ 1’200 companies Concentration and cost reduction are required to survive prices will decrease Acquisitions - fusions – closing down companies will be necessary to restructure the market 4 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 5: Opening up of the market according to the LME of 15.12.2000
Opening up of the market according to the LME of 15.12.2000 Liberalized market share Full competition 100% ~50 % 50% 40% ~30 % 40 % captive 30% 20% 20 % captive 16 % 12 % 10% 20 GWh 10 GWh 0 1 2 3 4 5 6 years For non eligible customers Consumption of GWh by final customers 5 C.Chabanel-P.Broye 01.02
Slide 6: Consequences of market liberalisation: calendar
Consequences of market liberalisation Calendar Decree currently in consultation and in revision Law to be voted in September 2002 Application from 1.1.2003 onwards The market could be opened by the government in case of law rejection 6 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 7: Consequences of market liberalisation: general views
Consequences of market liberalisation A. General views End of national monopolies Regulatory pressure on transport and distribution activities Market will have more products and competitors Global competition Price Margin Net result Financial and legal Unbundling will lead to reorganisation by profe
Slide 8: Consequences of market liberalisation: governmental authorities
Consequences of market liberalisation (cont’d) B. For governmental authorities Cross subsidies must disappear Local taxes will be replaced by a fee for usage of public property New shareholder strategies to be defined 8 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 9: Consequences of market liberalisation: the customer
Consequences of market liberalisation (cont’d) C. For the customer Price reductions Cost transparency Commercial relationship with several actors : Energy « retailer » Energy distributor 9 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 10: Consequences of market liberalisation: electrical companies
Consequences of market liberalisation (cont’d) D. For electrical companies New strategies to be defined for Production Distribution (THT / HT / MT / BT) Marketing Critical mass to be determined for each activity National and international partnerships have to be developped Colleagues will have to le
Slide 11: Main activities of the electricity sector
Main activities of the electricity sector Production Transportation Distribution Trading, Commercialisation Monopoly Non-descriminatory access to the grid garanteed Competition Competition National grid company 11 Source : PricewaterhouseCoopers C.Chabanel-P.Broye 01.02.2002/FLT
Slide 12: Swiss overview
Swiss overview 1,4 17,6 50 6,5 9,5 20,5 EV RW ED EnB Electra E.O N E20% F 34,5 W24,5% bel 24,5% N 20% 5% bn CHF UB 14,8% Bayerische Crédit Motor Hypoth. S Suisse 20% 37,2% Columbus & 20% Wechselbank 31% 56,5% Watt 1,7 79,2% AG63,3% 1,8 1,1 0,7 0,9 0,5 1,7 0,5 AT 36% BK 20% EO EG 36% CK 28% NO EW EL
Slide 13: The CVE-Romande Energie group
The CVE-Romande Energie group Minority investments in distributors Usines de l’Orbe 23,6 % SEF Aubonne 35,7 % Main investments 66,3 % FMHL 41,1 % 28,5 % 100 % 65 % Forces Motrices de l’Avançon FGB 19,2 % Avenis Trading 25 % 16.6 % 13 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 14: The CVE Romande Energie Group at a glance
The CVE Romande Energie Group at a glance Revenue 440 MCHF Employees 723 Distributed energy 2’327 GWH of which self produced hydraulic 511 GWH Population served 302’000 Lines 3’134 Km Cables 5’579 Km Transformating stations (hi-med voltage) 22 Transformating stations (med-low voltage) 3002 14 C.Chab
Slide 15: Business model
Business model C S E N G IN E E R IN G U U S P T P O Fee s P R O D U C T IO N D IS T R IB U T IO N O M R E T R S M AR K E T IN G Inc luding P ow er ba la ncin g EN E RG Y P RO V ID E RS 15 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 16: Group strategy
Group strategy Increase flexibility of our legal and operational framework; increase flexibility in shareholdings Continue legal and operational restructuring Purchasing electricity at competitive prices Strengthen the commercial position of the group 16 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 17: Group strategy: Décret 1951
Group strategy Décret 1951 Defines the regulations our company must abide by (there are 18 electricity companies in VD) Defines the company’s life until 2034 Freezes the shareholdings (40 % Canton, 30 % municipalities, 30 % free float) Contains rules regarding the level of certain lakes and other ru
Slide 18: Group strategy: legal and operational restructuring
Group strategy Legal and operational restructuring Cable TV activities have been sold Telesecurity business sold Management buy-out of our inside-installations activities Non-core buildings sold Household electrical stores closed down Further step: dispose of loss-making public transport activities
Slide 19: Financial restructuring
: financial restructuring Amounts of the financial reorganisation for eos and its shareholder- customers Total CHF 155 Mio CHF 900 Mio Loans CHF 380 Mio Special rates for the shareholder- customers CHF 365 Mio Asset revaluation Effort : Internal eos Shareholder-customers Shareholders 19 C.Chabanel-P
Slide 20: Strengthen the commercial position of the group
Group strategy Strenghten the commercial position of the group Revenues KA es i ti Pa al rtn ip ic er un Small businesses s M Households Number of customers 20 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 21: CVE – Romande Energie group: historic performance
CVE – Romande Energie group: historic performance MCHF 1998 1999 2000 Revenues 468,3 468,8 441,8 Total operating expenses (363,6) (350,7) (333,5) EBITDA 104,7 118,1 108,3 In % of revenues 22 % 25 % 24 % Net income 25,2 39,5 31,6 21 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 22: CVE – Romande Energie group: First half performance
CVE – Romande Energie group: First half performance Six month ended June 30 MCHF 2000 2001 Change Revenues 226,9 223,3 (1,5 %) Total operating expenses (173,1) (166,7) (3,7%) EBITDA 53,8 56,6 5,2 % In % of revenues 24 % 25 % Net income 23,3 35,0 50 % 22 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 23: Revenues by source (MCHF)
Revenues by source (MCHF) 250 21.2 18.2 200 Others 150 Low voltage 149.2 150.1 ENERDIS 100 High/med. 50 28.5 26.8 Voltage 28.0 28.2 0 1 H. 2000 1 H. 2001 23 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 24: Major cost items (MCHF)
Major cost items (MCHF) 200 180 160 Other 34 31 operational 140 costs 120 39 38 Personal 100 80 60 Energy 100 98 40 20 0 1 H. 2000 1 H. 2001 24 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 25: CVE – Romande Energie group: Balance sheet
CVE – Romande Energie group: Balance sheet MCHF 30.06.2001 Total assets 1’174 Shareholder’s equity 605 Net debt 63 Market value of the shares per 30.06.2001 335 25 C.Chabanel-P.Broye 01.02.2002/FLT
Slide 26: C.Chabanel-P.Broye 01.02.2002/FLT
26 C.Chabanel-P.Broye 01.02.2002/FLT
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