Upload
others
View
5
Download
0
Embed Size (px)
Citation preview
▪ 27 FEBRUARY 2020
▪ MAARTEN BLACQUIÈRE
▪ CHIEF FINANCIAL OFFICER
INVESTOR PRESENTATIONENEXIS HOLDING N.V.
ANNUAL RESULTS 2019
KEY HIGHLIGHTS
2
▪ Enexis - a leading publicly owned DSO in the Netherlands
▪ Focusing on excellent grid management and accelerating the energy transition
▪ Enabling the Dutch energy transition in its service area
▪ Committed to Sustainable Development Goals
▪ Operating in a stable and transparent regulatory environment
▪ Consistent solid financial performance
▪ Increasing investments due to sustainability projects
▪ Financial ratios comfortably meet required hurdles
▪ Outlook 2020
Residential
Power Plants
Offshore
wind farms
Export/import
Manufacturing
OfficesGreen Gas
District heating
GeothermicsElectric
Mobility
Wind Solar
3
ENEXIS - A LEADING PUBLICLY OWNED DSO IN THE NETHERLANDS
Linking pin within the energy chain
Large-scale
production
National
Transmission
Grids
Regional
Distribution
Grids
Local sustainable
generation, feed-in
and energy saving
Energy and
metering
services
Service areaShares owned by 5 provinces (75.6%)
and 88 municipalities (24.4%)
Key financials (in million euro’s) Other Key figuresBalance sheet total 8,258 Employees 4,488
Net turnover 1,491 Connections (E+G) 5.2 million
Profit after tax 210 % regulated turnover 91%
Free market Free market Free marketRegulatedRegulated
4
FOCUSING ON EXCELLENT GRID MANAGEMENT AND
ACCELERATING THE ENERGY TRANSITION
5
The related Dutch Climate Law passed Parliament (2018) and Senate (2019) and has 3 main goals:
49% reduction of
greenhouse emissions by
2030
95% reduction of
greenhouse emissions by
2050
100% CO2-neutral
electricity supply by
2050
ENABLING THE ENERGY TRANSITION IN ITS SERVICE AREADUTCH CLIMATE AGREEMENT TARGETS AND REGIONAL STRATEGIES
▪ Provinces and municipalities must present a first plan for the Regional
Energy Strategy (RES) in June 2020
▪ Enexis gained a strong position as a discussion partner in the Regional
Energy Strategies
Targets are set and actions are being taken
4
19
29 27
38 41
54
78
108
0
20
40
60
80
100
120
2011 2012 2013 2014 2015 2016 2017 2018 2019
Annual increase in connections
feeding in to the grid (in thousands)
COMMITTED TO SUSTAINABLE DEVELOPMENT GOALSENEXIS IS CARBON NEUTRAL WITH A STRONG ESG RATING
6
Focus on three
SDGs as primary
focus
Enexis core
activities:
▪ Enexis has a CO2 neutral footprint
▪ Strong ESG rating (71) and low ESG risk rating (21.5), well below subindustry average
Making a direct
contribution on
goals that support
our core activities:
OPERATING IN A STABLE AND TRANSPARENT REGULATORY ENVIRONMENT
▪ Established regulatory framework allows us:
▪ to earn a return on Regulated Asset Base
▪ to recover efficient costs
▪ With the energy transition gaining speed we face increasing grid investments year on year
▪ Gradual further declining WACC in a low interest environment
▪ Utilities in constructive dialogue with ACM (Dutch regulator) regarding treatment of pre-financing of increasing investments
7
Preparations and dialogue for the new regulatory period
I• Consultation Period
• 30-9-2019 / 1-1-2021
II
• Preliminary period with draft Method Decision expected around May 2021
• 1-1-2021 / 1-9-2021
III• Method Decision published
• 1-9-2021
IV• Start New Regulatory Period
• 1-1-2022
CONSISTENT SOLID FINANCIAL PERFORMANCE
8
Revenue Operational Costs
(excl. Depreciation)
Profit
in € millions
▪ Revenues moved fairly stable. Lower WACC caused downward pressure, which was compensated mainly by CPI
▪ Operational costs increased due to more workload and focus on our priorities, like recruitment and training of
technical personnel, facilitating the energy transition and improving IT-systems
▪ Multi year profits in line with regulatory return for shareholders, with 2019 including € -18 million one-off items (2018:
€ +76 million)
1353 1376 13981445
1491
0
200
400
600
800
1000
1200
1400
2015 2016 2017 2018 2019
447 492 487 468539
0
200
400
600
800
1000
1200
1400
2015 2016 2017 2018 2019
223 207 207
319
210
0
200
400
600
800
1000
1200
1400
2015 2016 2017 2018 2019
9
165 172 196 227289
146 145159
156
17035
107102
97
93
85
7363
79
90
22431
519 520559
642
2015 2016 2017 2018 2019
▪ Energy transition and economic growth lead to increasing gross and net investments for the electricity grid
▪ Replacement of brittle gas pipes to keep the gas grid safe and reliable
▪ Until end of 2019 we have installed Smart Meters at 2.5 million addresses
INCREASING INVESTMENTS DUE TO SUSTAINABILITY PROJECTS
Gross Investments Net Investmentsin € millions
Note: Gross investments -/- advanced customer contributions = Net investments
215 221 246292
378
162 163177
175
186
35107
10293
93
85
7363
82
90
30497
594 588642
747
2015 2016 2017 2018 2019
Endinet (2016 only)
Other
Smart meters
Gas network
Electricity network
FINANCIAL RATIOS COMFORTABLY MEET REQUIRED HURDLES
▪ All ratios well above hurdle rates
▪ The Interest Coverage Ratio benefitted from decreasing interest rates
▪ Due to the increasing investments in our grids and lower WACC, we see a decreasing trend in our FFO / Net Debt.
We are committed to our financial policy, hence safeguarding a minimum A credit rating profile
8,3 8,1
9,910,9
11,5
2015 2016 2017 2018 2019
Min 3.5
30%
26% 25%27%
23%
2015 2016 2017 2018 2019
Min 16%
FFO Interest Coverage FFO/ Net Interest-Bearing Debt Net Interest-Bearing Debt/
(Equity + Net Interest-Bearing Debt)
33%36% 37% 36%
39%
2015 2016 2017 2018 2019
Max 60%
10
OUTLOOK 2020
11
Regulation
▪ Tariff increase of 0.9% on Electricity for average household customer
▪ Tariff increase of 2.9% on Gas for average household customer
Capex
▪ Capex will increase approximately 10-15% in 2020 mainly because of grid investments related to wind and solar projects on land, smart meters roll out and investments in buildings
Financing
▪ New financing for increasing investments and redemption of a bond
▪ Preparing for potential issuance of a green bond
Profit
▪ € 50 million impact due to higher TenneT transmission costs, will be compensated for in 2022
REFERENCE LINKS
12
▪ For more detailed information please visit our website, in particular the investor-relations section.
https://www.enexisgroep.com/investor-relations/
▪ financial statements
▪ credit rating reports
▪ introduction to the regulatory framework
▪ debt redemption schedule
TOGETHER WE ARE WORKING ON A
RELIABLE AND SUSTAINABLE
ENERGY SUPPLY FOR TODAY AND
FOR THE FUTURE.