Analyst Call 2017 Eurogrid/ 50Hertz. 12 March 2018 Marco Nix, CFO

Transcription

1 Analyst Call 2017 Eurogrid/ 50Hertz 12 March 2018 Marco Nix, CFO

2 Highlights 2017 Further progress in grid extension Stabilising costs for congestion management Huge export from 50Hertz area Decreasing grid fees Good financial result 2017 Intensive cooperation Highest share of renewable energy production in electricity consumption ever Seite 2 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

3 Development of Renewable Energies Installed Capacity of Renewable Energies in 50Hertz Area in GW Wind Biomass PV Other RE GW 31 Feed-In Renewable Energy in 50Hertz Area in TWh TWh 51 TWh* * Preliminary figures, source 50Hertz Steady increase in installed capacity of Renewable Energies in 50Hertz area. Its electricity productions share in electricity consumption is 53% in Seite 3 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

4 957 Physical im- and exports Germany and 50Hertz Imports n GWh Exports in GWh DK SWE Energinet.dk BENELUX 2,699 21,266 7, POL TenneT 44,789 9,624 7, PSE ČEPS Net exports in TWh Germany and 50Hertz FRA CZ SUI AUT Hertz Germany With 49 TWh 50Hertz area is biggest exporter in Germany and Europe. Seite 4 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

5 Grid extension takes effect Avoided costs for congestion management by South West Coupling Line Lines Remptendorf-Redwitz and Altenfeld-Redwitz Second system SWKL 8000 First system SWKL Conversion substation High temperature conduction 50Hertz Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan 2013 Jan 2014 Jan 2015 Jan 2016 Jan 2017 Jan million EURO Less redispatch costs by South West Coupling Line since March 2018, 08:00 a.m Seite 5 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

6 Top infrastructure projects 2017 (onshore) 1. Commissioning of second system South West Coupling Line 2. Commissioning of phase shifter transformers at German-Czech border 3. Commissioning of substations in Wolmirstedt, Heinersdorf and Altentreptow Seite 6 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

7 Top infrastructure projects 2017 (offshore) Platform Wikinger Platform Arkona Ostwind 1 (CWA): First wind power feed-in from wind farm Wikinger in 12/2017 Ostwind 2 (CWA 2): Start of tender for cable production and installation Kriegers Flak Combined Grid Solution: BtB-converter and offshore platform under construction Hansa PowerBridge: Start of offshore routing and environmental studies Plattform Arkona Seite 7 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

8 Capex (onshore/offshore) 461 m Continuing need for investments bn bn exemplary distribution of capex In the next 5 years change of energy system needs investments of average 650 m per year. Seite 8 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

9 Available liquidity and cash flows Eurogrid Group, in m Available Liquidity per 31 Dec 2017 Cash Flows Cash Flow from Operating Activities 750 Cash Flow from Investing Activities -466 Free Cash Flow 284 Cash Flow from Financing Activities -100 Core business* EEG Facilities * incl. other surcharges (e.g. Offshore Liability Surcharge) Strong cash flow from operating activities for financing capex. Seite 9 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

10 RCF (unutilized so far) Debt Maturity Profile in m Bonds RCF and Syndicated Long Term Loan No change in well balanced maturity profile in Seite 10 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

11 Balance Sheet Eurogrid Group, IFRS in m Assets 6,642 7,114 +7% Equity 1,297 1,381 +6% Equity Ratio 20% 19% -5% Equity Ratio Core Business (w/o EEG) 25% 25% Net Financial Debt 1,625 1,441-11% Net Financial Debt Core Business (w/o EEG) 2,217 2,216 Solid balance sheet structure supports stable Baa1 rating. Seite 11 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

12 Rating Baa1 FFO Interest Coverage Stable Outlook 5.8x Net Debt/ Fixed Assets FFO/ Net Debt 39.7% 17.6% RCF/ Net Debt Net Debt/ EBITDA 11.6% 3.1* Stable Investment-Grade-Rating strengthens trust of the market. * not calculated by Moody s Seite 12 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

13 Overall performance Eurogrid Group, revenue and income IFRS in m 8,593 8, ,022 9,848 9,511 1,495 1,290 9,875 1,329 7,664 7,593 8,353 8,221 8, EEG and other cost-matching income Grid business Seite 13 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

14 Turnover Eurogrid Group, IFRS in m Revenues energy business Other revenues Horizontal grid revenues 94 [99] 73 [64] Turnover Grid [167] 1,329 m [2016: 1,290 m ] 952 [960] 587 Congestion Management Offshore North Sea Onshore Vertical grid revenues incl. settlement mechanism , Offshore Baltic Sea Grid losses and ancillary services Vertical grid revenues incl. settlement mechanism Hertz efforts to improve efficiency reduce costs for energy transition. Seite 14 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

15 Net result 2017 Eurogrid Group, IFRS in m Net result 2016 Growth Onshore efficiency Offshore efficiency Net result 2017 Seite 15 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

16 ct/kwh Development of the German TSO grid fees % Hertz TenneT TransnetBW Amprion 50Hertz grid fees decrease by 11% in Seite 16 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

17 Energy and climate protection: Cornerstone of coalition agreement of 7 February 2018 CO 2 -Reduction targets: 55 % until % until 2050 Steps for reaching 40 %-Target until 2020 Renewable Energies: 65 % until % until 2050 Synchronisation with grid extension Special Tender: 4 GW Wind-Onshore 4 GW PV additional offshore contribution Grid: Create acceptance for extension and contribute for acceleration Sector Coupling: Progress of development of new storage technologies Seite 17 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

18 Installed capacity in GW Further efforts for Renewable Energy extension necessary New target for Renewable Energie extension: 65 % share in energy consumption until 2030 Additional 65 TWh Renewable Energies (compared to 55 %-Target until 2030) GW + 7 GW ,5 5 GW Wind onshore 55 %-Target until 2030 Wind onshore 65 %-Target until Wind offshore 55 %-Target until 2030 Wind offshore 65 %-Target until 2030 PV 55 %-Target until 2030 PV 65 %-Target until 2030 Seite 18 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

19 Strategic challenges focused on electricity grids Simplified and accelerated approval procedures Acceptance as basic prerequisite for grid extension Technical innovation for higher utilization of the existing grid Digitalisation for future grid operation together with DSOs Progress in development of the regulatory framework Requirement from EU clean energy package Seite 19 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

20 RoE after tax Expert opinion proves a RoE on the lowest level in international benchmark 8% 7% Average rest of world (7.03 %) Average Euro- Countries (6.47 %) 6% Expert opinion (6.27 %)* 5% Resolution BNetzA (5.64 %) 4% Belgium France Luxemburg Netherlands Italy Finland Austria Germany *Source: WKTG Warth Klein Grant Thornton; from expert opinion Prof. Martin Jonas BNetzA Federal Network Agency Many regulatory systems contain additional incentives and adders. Seite 20 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

21 50Hertz Top-Targets Coherent approach at 50Hertz Competetive and sustainable profitability High efficiency Value-based corporate culture Demanddriven grid development High security of supply ensures a balanced treatment of all stakeholders aspects. Seite 21 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

22 Thank you very much for your kind attention! Marco Nix, CFO 50Hertz Transmission GmbH Heidestraße Berlin info@50hertz.com Robert Weigert, Head of Treasury Eurogrid GmbH Heidestraße Berlin info@eurogrid.com Berlin, 12 March 2018

23 Consolidated Income Statement Eurogrid Group, IFRS EUR m Revenue 9, ,449.0 Cost-matching income (8,545.7) (8,220.8) Revenue from grid business and other revenue 1, ,228.2 Other income Total turnover 1, ,290.4 Cost of materials and purchased services (9,299.4) (9,021.6) Income-matching cost 8, ,220.8 Cost of materials and purchased services, grid business (753.7) (800.8) Personnel expenses (99.4) (96.8) Amortization, depreciation and write-downs (149.5) (138.1) Changes in provisions (0.3) (0.8) Other expenses (4.6) (16.7) Result from equity investments accounted for using the equity method Earnings before interest and taxes (0.1) Financial result (54.3) (55.3) Finance income Finance expenses (56.2) (57.1) Earnings before taxes Income taxes (85.4) (54.6) Group profit Seite 23 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

24 Consolidated Statement of Financial Position Eurogrid Group, IFRS EUR m 31 Dec Dec 2016 Non-current assets 4, ,240.7 Property, plant and equipment 4, ,155.1 Intangible assets Trade and other receivables Other financial assets Investments accounted for using the equity method Deferred tax assets Current assets 2, ,401.5 Inventories Trade and other receivables 1, ,144.7 Receivables from income taxes Cash and cash equivalents 1, ,222.7 Anticipatory assets Total assets 7, ,642.2 EUR m 31 Dec Dec 2016 Equity 1, ,296.6 Issued capital * Reserves 1, ,173.8 Total comprehensive income for the year Non-current liabilities 3, ,188.7 Loans 2, ,827.9 Provisions for employee benefits Other provisions Deferred tax liabilities Other liabilities Current liabilities 2, ,113.1 Loans Other provisions Trade payables and other liabilities 2, ,020.7 Liabilities from income taxes Anticipatory equity and liabilities Regulatory items Total equity and liabilities 7, ,642.2 * Eurogrid GmbH s issued capital remains unchanged at EUR 25,000. Seite 24 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

25 Consolidated Statement of Cash Flows Eurogrid Group, IFRS EUR m 31 Dec Dec 2016 Cash flow from operating activities Group profit Adjusted for: Net finance expenses Income tax expenses Depreciation of property, plant and equipment and amortization of intangible assets Gain on the disposal of intangible assets and property, plant and equipment 0.2 Impairment of current assets Changes in provisions Change in deferred taxes (98.3) (0.1) Share of loss of associates accounted for using the equity method, after tax (previous year: share of profit) 0.1 (1.0) Change in other non-cash items Change in inventories (0.7) 0.7 Changes in trade receivables and other receivables 4.7 (28.7) Change in trade payables and other liabilities (51.5) Change in regulatory items (27.6) Change in working capital (107.1) Interest paid (60.0) (46.6) Interest received 01. Jan 1.6 Income taxes paid (125.6) (12.1) Cash flow from operating activities Cash flow from investing activities Cash paid for the procurement of property, plant and equipment and intangible assets (470.4) (821.9) Cash received for construction cost subsidies Cash paid/received for the acquisition of financial assets measured at cost (0.2) (0.2) Cash received from disposals of financial assets Net cash flow from disposals of property, plant and equipment Cash flow from investing activities (466.3) (819.1) Cash flow from financing activities Distribution (99.7) (99.3) Cash received for issuing (registered) bonds and taking out loans Cash flow from financing activities (99.7) Change in cash and cash equivalents Cash and cash equivalents as of 1 January 1, ,019.5 Cash and cash equivalents as of 31 December 1, ,222.7 Change in cash and cash equivalents Seite 25 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018

26 Disclaimer This document ( Document ) has been prepared by Eurogrid GmbH ( Company ) and its wholly-owned subsidiary 50Hertz Transmission GmbH ( 50Hertz ). No representation or warranty, no liability Although all reasonable care has been taken to ensure that the content of the Document and the information and statements provided during the presentation are accurate, no representation or warranty, express or implied, is or will be made, and no liability is or will be accepted, by the Company, 50Hertz or by any of their respective officers, employees, representatives or agents ( Representatives ) in relation to the fairness, accuracy, completeness or reasonableness of this Document and/or the information and statements contained herein (including, inter alia, all estimates, valuations, forecasts, assumptions or statements of opinion or expectation) or any other information and statements made available in this context during the presentation or otherwise; in fact the information and the statements may be incomplete, condensed and may not contain all information which might be material to a person receiving the Document or information respectively statement for the purpose contemplated thereby. In particular, no reliance on forward looking statements, statistical and third-party data In particular, to the extent provided statements in the Document and/or the presentation are forward looking, such as, inter alia, expectations, projections or prospects, they are based on Representatives' current views and on numerous assumptions and expectations which involve known and unknown risks and uncertainties such as regulatory changes that could cause actual results, performances or events to differ materially from those expressed or implied in such statements. This Document (together with any other information that may be furnished by the Company and/or 50Hertz in particular in the presentation) also includes or may include statistical data and cites or may cite third-party data such as projections regarding the future growth of the market. This data is taken or derived from publicly available information published by industry sources or other third parties. Neither the Company nor 50Hertz nor their Representatives have independently verified this data. No reliance should therefore be placed on the statistical data and third-party data cited in this Document, in particular on its accuracy and/or completeness. No obligation to update or to carry out measures This Document and the presentation speak only as of their dates. Neither the Company, nor 50Hertz, nor any Representative undertakes any obligation to update the Document or any other written, electronic or oral information supplied in this context (including, in particular, all expectations and other forward looking statements) or to correct any inaccuracies which may become apparent whether as a result of new information, future events or otherwise. The issue of this Document and the information respectively statements provided during the presentation shall not be taken as any form of commitment on the part of the Company or 50Hertz to proceed with any measures. Seite 26 Analyst Call 2017 Eurogrid GmbH/ 50Hertz Transmission GmbH Marco Nix, CFO 12 March 2018