2015 ANNUAL RESULTS AND OUTLOOK. Presentation of 2015 annual results 1

Transcription

1 2015 ANNUAL RESULTS AND OUTLOOK Presentation of 2015 annual results 1

2 SUMMARY Presentation of 2015 annual results 2

3 2015 TARGETS AND FORECASTS EXCEEDED + 2% Acquisition of customer sites in France Revenue at seasonal average temperatures Current operating income PUBLISHED TARGETS (March 2015) 450, % +25% TARGETS REVISED UPWARDS (October 2015) >540,000 >20% >35% TARGETS ACHIEVED (March 2016) 594, % +40.4% Presentation of 2015 annual results 3

4 DIRECT ENERGIE: 3 RD LARGEST ELECTRICITY AND GAS SUPPLIER IN FRANCE Consolidated financial statements at 31/12/2015 Revenue including Energy Management Current operating income 1,016.5M 34.0M employees 356 1,6 Million customers Load curve delivered 11.4TWh 800MW Operation of a 400MW Power Plant acquired in December 2015 Acquisition of customer sites 621,000 Ongoing development of a 400MW Power Plant project in Brittany Presentation of 2015 annual results 4

5 SHAREHOLDER BREAKDOWN AND SHARE PRICE PERFORMANCE EBM Tirhena AG Luxempart Ecofin 4.58% 10.22% Impala SAS 10.03% 35.22% 14.24% AMS Industries Management, salariés et flottant 10.97% 14.75% Lov Group Invest 71.2% 14.6% Concert Impala / AMS Industries / Lov Group Invest / EBM Concert Luxempart / Ecofin Transfer to Euronext Paris: November 2015 (B compartment) Increase in share price: % (from 1/1/2015 to 31/12/2015) Market capitalisation at 31/12/2015: 785 M Presentation of 2015 annual results 5

6 STRATEGIC DEVELOPMENT AREAS Continue to gain market shares in France. Build profitable international growth by capitalising on the existing systems and processes. Implement a vertical integration strategy through secured investments in flexible power production. Be a leader at the edge of innovation in energy services. Presentation of 2015 annual results 6

7 ACHIEVEMENTS IN 2015 Presentation of 2015 annual results 7

8 KEY EVENTS IN 2015 A record number of customer sites acquired with annual revenue exceeding 1 billion for the 1 st time Transfer to Euronext in November 2015 B Compartment CAC all shares, ENT PEA-PME Implementation of vertical integration acquisition of a gas-fired power plant in the Allier department (France) Adaptation of the sourcing strategy to take advantage of falling wholesale prices (no more ARENH as of 1 April 2015) Increased financial flexibility with a 2 nd private placement ( 60 million) and the set-up of a 60 million syndicated loan Temperatures above seasonal averages at year-end gas consumption was impacted over this period Presentation of 2015 annual results 8

9 NEW ACCELERATION OF COMMERCIAL MOMENTUM IN FRANCE December 2015 December 2014 New customer sites acquired over the financial year 594, ,000 46% Customer sites in portfolio at year-end ,591,000 1,288,000 24% Load curve delivered 11.4 TWh 8.4 TWh 36% Change in customer base by segment (in thousands) Change in customer base by energy (in thousands) Customers acquired (in thousands) 1,591 1, , , ,337 1, , , , , Individuals Professional Electricity Gas 1 st Half 2 nd Half Presentation of 2015 annual results 9

10 MARKET OPPORTUNITIES SEIZED Sourcing strategy adapted to take advantage of falling market prices, especially for electricity - Since 1 April, market purchases (regulated and over-the-counter) instead of ARENH whose price remained stable at 42/MWh - Positive effect on the gross margin around 2.8/MWh (about 22 million) - Possibility of returning to ARENH should the price rise above 42/MWh (no risk on margins) Changes in Calendar Base contracts (Includes the output for the current year) ARENH Presentation of 2015 annual results 10

11 ENERGY MARKETS EXPOSURE AT YEAR-END 2015 Forward purchases of 28TWh 25 TWh in electricity 3 TWh in gas In line with the group's hedging strategy Gradual for the mass market segment - 100% for Y - 65% for Y+1-33% for Y+2 Back-to-back for major accounts Allowing to secure growth in future margins - Purchase price lower than the ARENH reference price - Residual open positions which benefit from the continuing decline in market prices - Contributing to 2016 objectives Forecast roll-off of the exposure at Débouclage prévisionnel 31/12/2015 de l'exposi on au 31/12/ M 120 M 80 M 40 M - 01-jan jul jan jul jan jul.-18 Regulated Market OTC 140 million exposure (bank guarantees and cash) - Certainty on recovery of the collateral over the period of delivery - No impact on future margins Presentation of 2015 annual results 11

12 PROFITABLE GROWTH... Revenue (in millions of euros) 1,017 Gross margin (in millions of euros) % % % % Current operating income (in millions of euros) 34.0 Net income (in millions of euros) % % +404% +237% Presentation of 2015 annual results 12

13 ... STEERED IN A CONTEXT OF MANAGED COSTS Cost to serve expressed in euros per average customer Direct Structure costs Main components of direct cost to serve: - Customer service - Billing - Credit collection Acquisition costs (in euros per customer acquired) RECOGNISED SERVICE QUALITY Marketing, communication and digital Acquisition cost Chosen Best Customer Service of the year for the 9 th year running Presentation of 2015 annual results 13

14 ACQUISITION OF A NATURAL GAS COMBINED CYCLE POWER PLANT IN FRANCE MW power plant located in Bayet (Allier department, France) - Held by 3CB, a fully-owned subsidiary of Alpiq - Plant commisioned in July 2011 by Ansaldo (Siemens technology) - Operated by a staff of 32 people Transaction - Description: purchase of 100% of 3CB's share capital (signing on 30/12/2015) - Amount: 44.4 million - Financing: at Direct Energie level, partial use of the latest private placement Rational - Hedging strategy between upstream and downstream, reducing sensitivity to changes in market prices Implementation of vertical integration strategy Presentation of 2015 annual results 14

15 ANNUAL FINANCIAL STATEMENTS Presentation of 2015 annual results 15

16 BUSINESS GROWTH AND MARGINS Gross margin increasing by more than 23%: No more ARENH since 1 April 2015 Secured sourcing in an environment of falling market prices Growth of the economic space Strong increase in revenue (+25.5%) notably due to the growth of the customer base and the increase in volumes sold Impact (temporary) of the change in fair value of energy derivative instruments operational in nature (a consequence of falling market prices) Impact (full year) of the first private placement ( 55 million), the set-up of a syndicated loan ( 60 million) and a second private placement ( 60 million) New growth in net profitability Growth in current operating income of more than 40%, operational cost monitoring in a strong growth context Suspension of development of a gas-fired power plant project in Moselle (France) (disposal of fixed assets) Capitalisation of tax losses carried forward, given the future income prospects Presentation of 2015 annual results 16

17 GROSS MARGIN ANALYSIS Millions of ERDF service contract H supplemental retroactive price adjustment Organic growth H neutralising the retroactive price adjustment Impact of ARENH termination 2014 gross margin 2015 gross margin Presentation of 2015 annual results 17

18 ANALYSIS OF THE CONSOLIDATED BALANCE SHEET Including 34 million in gas for gas storage requirements Acquisition of 3CB at end-december 2015 total investment of 44 million Of which 28 million in tax losses carried forward Fall in market prices causing an increase at year-end on the regulated market (impact of 48 million) and deposits in cash collateral with counterparties ( 64 million) Change in fair value (difference between the purchase price and the price at 31/12) of derivative hedging instruments: temporary impact gradually rolled off over the period of delivery Bond issues Draw down on RCF ( 60 million) Presentation of 2015 annual results 18

19 2015 CHANGES IN CONSOLIDATED CASH M Cash flow position Investment cash flows Financing cash flows Change in WCR Gross cash and cash equivalents at beginning of year 31/12/2014 Gross cash and cash equivalents at 31/12/2015 Cash position remains a surplus in an environment marked by important variations in WCR and investments Increased financial flexibility with a 2nd private placement ( 60 million) and supplemental mediumterm financing (RCF of 60 million) Net debt is at million, compared to (2.2) million at 31 December Impact of cash used to cover exposure - Net debt restated of this impact contained at 83 million Presentation of 2015 annual results 19

20 2016 OUTLOOK Presentation of 2015 annual results 20

21 MAJOR ACCOUNTS SEGMENT: A COMMERCIAL INVESTMENT THAT WILL PAY OFF IN 2016 Forecasted impacts of this activity in ,000 customer sites acquired in 2015 >3TWh additional load curve > 250 million associated revenue > 10 million additional estimated gross margin New customer contracts include: Presentation of 2015 annual results 21

22 STRATEGY SUPPORTED BY MARKETING INVESTMENTS An ambitious media plan - New publicity saga on television Acceleration of the implementation of the digital strategy - Creation of a cross-functional digital management - Optimising acquisition costs Implementation of measures to generate traffic, use of the data generated - Image and reputation management Social media strategy, analysis of customer opinion - Improving customer experience Using data to facilitate a better customer experience A successful entry into sports sponsoring taking on the SA Vendée Cyclisme team (formerly the Europcar cycling team) The team has had 9 wins since 1 January 2016 PRO CYCLING TEAM Presentation of 2015 annual results 22

23 INNOVATION AND ITS CHALLENGES DELEC par direct energie Passive energy efficiency: renovation Smart homes and connected objects Demand response Linky and new ways of Electric vehicles (recharge, Self-supply of electricity Presentation of using 2015 annual energy results V2H, V2G) 23

24 ONGOING REGULATORY CHALLENGES TARIFS RÉGLEMENTÉS DE VENTE CoRDiS legal actions In front of the French Council of State Dicussions in progress concerning the extension of the term of the service contract 2016 objectives are set independently of the conclusions reached and the legal actions in progress Presentation of 2015 annual results 24

25 0.20 DIVIDEND IN 2016 Continuing the dividend distribution policy Proposed dividend per share of 0.20 Subject to approval of the General Meeting on 9 June 2016 Presentation of 2015 annual results 25

26 TARGETS FOR 2016 FINANCIAL YEAR + 2% Acquisitions Revenue Current operating income growth >20% in customer base Increase >35% at seasonal average temperatures growth >30% at seasonal average temperatures Presentation of 2015 annual results 26

27 Q&A Presentation of 2015 annual results 27