25.10.2021 2021 meeting for analysts and investors
25.10.2021
2021 meetingfor analysts and investors
repower.com 2
2021 meeting for analysts and investorsAgenda
Market and strategy Roland Leuenberger, CEO
Finance Lorenzo Trezzini, CFO
Outlook Roland Leuenberger
Questions
repower.com 3
Energy legislationMarket and strategy
Investment grants for large hydroMore resources for expanding large hydro
Blanket framework for secure electricity supplyRevision of energy supply and energy legislation
Girod parliamentary initiativeRigid water rate regime extended until 2030
repower.com 4
Electricity priceHigh electricity prices with pronounced volatility
0
20
40
60
80
100
120
140
160
180
Jan.2020 Apr.2020 Jul.2020 Okt.2020 Jan.2021 Apr.2021 Jul.2021 Okt.2021
EU
R/M
Wh
Cal22 Baseload - CH Cal22 Baseload - DE
80
90
100
110
120
130
140
150
160
170
180
31.Aug 07.Sep 14.Sep 21.Sep 28.Sep 05.Okt 12.Okt 19.Okt
EU
R/M
Wh
Cal22 Baseload - CH Cal22 Baseload - DE
Security of electricity supply
Will the lights soon go out on us?
Supply security in winter
Federal Office of Energy forecasts important balance of 14 TWH from 2034 According to ElCom, imports of more than 10 TWh will push the system to its limit
So far, connection with Europe has assured Switzerland, and Europe, a stable supply of electricity(CH is connected with Europe via 41 lines)
Shared responsibilities (Federal Council, BFE/FOE, ElCom, BWL/FONES, Swissgrid, distribution grid operators, balance groups)
Reversions of hydropower plants in Canton GraubündenConcentration of reversions between 2035 and 2050 (i.e. “today”)
Asset End ofconcession
Tinzen 2035
Zervreila, Safien, Rothenbrunnen, Realta
2037
Bergeller KW 2039
Soazza 2041
Ferrera, Bärenburg, Sils, Thusis
2042
Domat/Ems 2042
Filisur 2046
Serdun, Tavanasa 2048
Ova Spin, Pradella 2050
Tiefencastel Ost 2050
repower.com 8
Media conference for analysts and investors: 1st half of 2021Agenda
Market and strategy Roland Leuenberger, CEO
Finance Lorenzo Trezzini, CFO
Outlook Roland Leuenberger
Questions
repower.com 9
FinanceHighlights
Total operating revenue (CHF m) Group profit (CHF m)
Operating cash flow (CHF m) Number of employees (FTE)
EBIT (CHF m)
Equity (CHF m)
843
1’293
HY 2020 HY 2021
+53%
6860
HY 2020 HY 2021
-12%
41 42
HY 2020 HY 2021
+2%
64
92
HY 2020 HY 2021
+44%
863 892
HY 2020 HY 2021
+3%
563 594
HY 2020 HY 2021
+6%
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EBITDecline of CHF 8.5 m (-12%)
Gross margin: Good results from sales business (E2E) and renewables not enough to offset decline in trading
business (Italy and Switzerland)
Other income: Results underpinned by CHF 20.5 m payment from Swissgrid (transfer of transport grid)
Personnel expenses: Investment in 31 FTE in human resources (CH: +16 FTE; IT: +15 FTE)
Licences and concessions: Lower licences and concessions owing to lower volumes generated
Other expenses: Driven by increased investment in development costs (renewables business)
24.1
Personnel exp.
-5.0-1.9
Int.prod.&cap.assets
0.3
Associates
59.6
HY 2021HY 2020 Depr./amort.
0.1
68.1-25.1
Gross energy margin Oth. income Other exp.
0.8
Concessions
-1.8
-8.5CHF m
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EBITDecline of CHF 8.5 m (-12%) by segments
Switzerland: Compensation for the transfer of the transport grid to Swissgrid is
more than enough to offset a decline in gross margin (CHF -14.5 m).
Italy: The decline in Italy is due to a return to normal in the gross margin on
balancing energy (MSM margin) versus the prior year.
Corporate Centre: Helped by payments from positive court rulings, lower capital
taxes and IT costs
CHF m
11.617%
19.132%
56.583%
3.3
SwitzerlandHY 2020
-16.0
Italy
4.2
Corp. Center
40.568%
HY 2021
59.6
68.1
-8.5
CH*
IT
* including Corporate Centre
repower.com 12
Segment Switzerland: EBITEBIT up CHF 3.3 m
Service Provision Division: Reaches prior year level
Market Division: Prior year’s provisions for guarantees
of origin no longer apply in 2021
3.4
21.5
HY 2020
-0.1
MarketService Provision HY 2021
18.2
+3.3CHF m
* excluding Corporate Centre
repower.com 13
Segment Italy: EBITSharp (CHF 16 m) decline in EBIT driven by MSD margin
Trading activities: Normalisation of MSD margins, CHF -26.7 m (-46.5%) down on
2020, and downtime at Teverola in February, lead to sharp decline
Sales business: Increase in volumes sold (electricity: +17%; gas: +11%) reflected in
higher margins (electricity: CHF +9.6 m; gas CHF +6.7 m)
Renewables business: Higher volumes generated and gross margin (+50% versus
prior year) contributed to gratifying results
18.2
-34.3
Trading
-2.0
HY2020
2.1
Renewable
40.5
Sales HY 2021Other
56.5
- 16.0CHF m
*Other: finance/management and generation
repower.com 14
Tax expense and net profitTax expense: decline owing to lower taxable profits in Italy
CHF m CHF m
-17.2
-9.6
ItalyHY 2020
0
CH HY 2021
7.6
The decline in tax expense in Italy is mainly due to lower earnings
59.6
42.4
Taxes ProfitEBIT
-7.6
-9.6
Financial earnings
Financial earnings come to CHF -7.6 m (prior year CHF -10.1 m), primarily consisting of interest expense and the premature repayment of interest rate swaps
1H21 profit comes to CHF 42.4 m (up CHF 1.6 m from CHF 40.8 m in 1H20)
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EquityFurther strengthening in equity (CHF +23 m/3%)
Increase in equity
Thanks to strong half-year results, equity after dividend increased by CHF 23 m
1’876 1’9822’209
844 869 892
20202019
45% 44% 40%
HY 2021
Assets
Equity ratio
Equity
Equity ratio declines owing to higher total assets (higher replacement values)
Equity ratio of 40% within target range of 35% to 45%
42
Equity 30 Jun 21Equity 1 Jan 21
869
Earnings
-23
Dividend
4
Other
892
+3%CHF m CHF m
repower.com 16
CapexInvestment of CHF 53.5 m in tangible and intangible assets
Grid8.6 MCHF
Generation7.8 MCHF
Reversion waiver compensation
24.1 MCHF
Other assets1.8 MCHF
Italy11.2 MCHF
In the first year a total of CHF 53.5 m was
invested.
CHF 42.3 m was invested in Switzerland and
CHF 11.2 m in Italy
The biggest investment in Switzerland was CHF
24.1 m for reversion waiver compensation in
Valposchiavo
CHF 8.6 m was invested in grid assets and CHF
7.8 m in generation assets
repower.com 17
Net liquidityNet debt to EBITDA declines further
CHF mHY
2020HY
2021
Cash and cash equivalents 301 285
+ securities and fixed-term deposits
196 198
./. financial liabilities 405 377
./. Interest liabilities 3 3
Net liquidity* -89 -103
*Net liquidity, indicated by a minus sign, now comes to CHF -103 million
-31
-103
117 129
87
-0.3
-1.2
2019
-89-0.7
HY 20212020
Net debt EBITDA Net debt/EBITDA
CHF m
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Financial liabilities: Repower AGTotal CHF 256 m on 30 June 2021
Liabilities are broadly diversified in terms of counterparties and maturities
Broad range of debt instruments (bonds, credits, loans, registered bonds, etc.)
UBS ZKB ING ING GKB SET PAX DB
MCHF 96.4 10.0 27.5 27.5 50.0 21.9 20.0 2.7
Fälligkeit 20.07.2022 20.03.2023 23.01.2024 23.04.2025 04.07.2026 30.06.2027 28.06.2030 08.08.2034
Zinssatz 2.375% 3.625% 1.698% 1.922% 1.820% 3.900% 2.500% 3.400%
0.000%
0.500%
1.000%
1.500%
2.000%
2.500%
3.000%
3.500%
4.000%
4.500%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
repower.com 19
ItalyOverdue receivables still at low level
0
50
100
150
200
250
300
350
9,0
6,0
0,0
10,5
7,5
4,5
1,5
3,02.12%
2013
7.65%
49,9
7.09%
2014 2015 2021-06
5.60%
2016
1.36%
2017
1.72%
2018 2020-06
1.74%
11,6
2019
27,4
2020
17,3
3.13%
9.29%
82,3 75,2 65,6
17,1
2.19%
2012
16,4
57,1
6.52%
19,8
Open accounts receivableIn % of sales (billed)
Long-term trend positive, thanks among other things to optimised accounts receivable management and selective customer checks
Despite sustained impact of Covid-19 receivables had declined to below 3% again by end-June 2021
repower.com 20
Capital market2021 ratings
repower.com 21
Financial policyThree central pillars
Healthy balance sheet structure
Good supply of liquidity
Adequate financing policy
Net debt/EBITDA < 0 thanks to net liquidity
Operating cash flow covers investment and dividends over a period of several
years
Adequate cover with unused lines of credit at various banks
Forward-looking management of liquidity and maturities of financing
Access to capital markets assured at all times
Financing instruments match the profile of the business
Forward-looking financial planning taking account of exchange rate
developments
repower.com 22
2021 media conference for analysts and investorsAgenda
Market and strategy Roland Leuenberger, CEO
Finance Lorenzo Trezzini, CFO
Outlook Roland Leuenberger
Questions
repower.com 23
OutlookWe put our energy into the future
CoronavirusElectricity consumption in 1st half of 2021 back to pre-Covid level
Earnings Second half of 2021 will be solid but less strong
Energy transitionPushing ahead hard with own hydro and PV projects
Electricity marketCharacterised by extraordinarily high electricity prices and great volatility
StrategyJoining forces, boosting profitability
repower.com 24
2021 media conference for analysts and investorsAgenda
Market and strategy Roland Leuenberger, CEO
Finance Lorenzo Trezzini, CFO
Outlook Roland Leuenberger
Questions
repower.com 25
QuestionsInstructions for webinar questions
1
2
Please enter your questions in the box
provided in the webinar tool
repower.com 26
AgendaNext dates in the financial agenda
Key dates
5 April 2022 Annual media conference
18 May 2022 Annual general meeting in Klosters
25.10.2021
MANY THANKS!