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![Germany: Main outline of the proposed amendment
of the Renewable Energies Act (EEG)
-
RES share of electricity consumption to be between 40%
and 45% by 2025 and between 55% and 60% by 2035
(previously minimum targets were set: 2020 35%; 2030
50%)
A binding corridor for the deployment of renewables
energies
-
Offshore wind target: 6.5 GW by 2020 (previously 10
GW by 2020)
-
20,36
20
13,53
15
10
5
8,33
3,530
3,592
2011
2012
6,240
14,11
5,277
2,047
0
2010
2013
2014
Feed-in tariffs remain method of choice, mechanisms
for quantitative expansion control to be introduced by
2018 (tenders to be tested for large solar power systems
by 2016)
-
23,58
Mandatory “market premium” with sliding premium for
new RES plants
Costs
EEG surcharge
Line of attack of the Energiewende remains unchanged.
Elia Group full year results 2013 / Brussels, 28.2.2014
29 / 30
EEG surcharge [ct/kWh]
-
25
Costs [Bn. €]
Until now only key parameters have been established.
The legislative process has not yet started. Entry into
force is foreseen for August 2014.](https://image.slidesharecdn.com/eliagroupfullyearresults2013-140303031433-phpapp01/85/Elia-group-full-year-results-2013-29-320.jpg)
Uploaded byElia
Elia group full year results 2013
The document provides an overview of Elia Group's full year 2013 results. Key highlights include good financial results for the Group, with increased EBITDA in both the 50Hertz and Elia transmission businesses. Net profit increased 13.4% to €175.8 million. Operational highlights note nearly full realization of investment plans and continuity of supply maintained in both Belgium and Germany. The outlook discusses plans to establish a new entity to pursue asset and share deals and regulatory developments.
Elia group full year results 2013
- 1. Full year 2013results Analyst meeting Brussels, 28 February 2014
- 2. Disclaimer - This presentationis only provided for general information purpose about Elia and its activities. The included statements are neither reported results nor other historical information. They are not provided to serve as the basis for any evaluation of Elia, and cannot be binding and/or enforceable upon Elia. - As forward-looking statements, they are subject to assumptions, risk and uncertainties, actual future results may differ from those expressed in or implied by such statements. - Although Elia uses reasonable cares to present information which is up-to-date to the best of Elia's knowledge, Elia makes no representation or warranty whatsoever as to the adequacy, accuracy, completeness or correctness of such information. - Elia will not be liable for any consequences arising from or related to the use or interpretation of the information contained or absent in this presentation. Elia Group full year results 2013 / Brussels, 28.2.2014 2 / 30
- 3. 1.eghts 2013 • Keyhighlights 2013 • Operational highlights • Financial results • Outlook 2014
- 4.
- 5. Key highlights 2013 Operational •Adjusted transmission tariffs for Elia have been approved by the CREG • Nearly full realization of ambitious investment plans in both countries • Continuity of supply maintained during winter season in both areas Financial • Good results for the Group: • Significant increase results 50Hz transmission • Lower results for Elia transmission due to low Belgian OLO • Proposed dividend of €1,54 per share • New consolidation method for 50Hertz used as from 2014 Outlook • Establishment of new entity by Elia and 50Hertz to reinforce the position of the Elia Group for asset and share deals, by scouting for such deals and developing two lines of businesses: Consulting & Services and EPC/EPCM projects • Regulatory status of play • Investment programme for the Elia Group • Changing government in Germany results in changing energy policy? • Decisions federal government Belgium relating to the energy law Elia Group full year results 2013 / Brussels, 28.2.2014 5 / 30
- 6.
- 7. Energy consumption 9,0 8,0 Elia’s network:80,5 TWh (81,7 TWh) 7,0 TWh 6,0 • Mild weather • Decentralised generation 5,0 4,0 3,0 2,0 1,0 0,0 jan 6,0 feb mar apr may june july 2010 2011 aug sep 2012 oct nov dec 50Hertz’s network: 58,1 TWh (58,2 TWh) 5,0 4,0 TWh 3,0 2,0 1,0 0,0 jan feb mar apr may june july 2010 2011 aug sep 2012 oct nov dec • Mild weather • Decentralised generation • Renewables (1) The Elia consumption indicator covers the majority of electricity consumption. It includes all production directly connected to the Elia grid plus net import-export balance Elia Group full year results 2013 / Brussels, 28.2.2014 7 / 30
- 8. Import - export Denmark 1,2TWh 4,4 TWh 2,5 TWh Netherlands 0,5 TWh 7,8 TWh Poland Hamburg Berlin 27,9 TWh 5,4 TWh 8,8 TWh 2,4 TWh 0,7 TWh France Luxembourg 8,8 TWh 0,8 TWh 1,4 TWh Czech Republik 2,4 TWh • Significant imports in Belgium due to continued outages of nuclear plants up to June 2013 • The increased RES share within control zone 50Hertz results in important exports Elia Group full year results 2013 / Brussels, 28.2.2014 8 8 / 30
- 9. Elia group: Investments 50Hertz Elia 2% 3% 11% 6% 14% €202,7 M € 402,0 M 43% 1% € 247,7 M onshore €154,3 M offshore 31% 89% Replacements Internal consumption Interconnections Integrating renewables Non electrical investments • Investments in Belgium are mainly driven by replacements and the internal consumption. • In Germany, the integration of renewables is by far the most important driver. Elia Group full year results 2013 / Brussels, 28.2.2014 9 / 30
- 10. Elia-TSO: Major investments LargeInfrastructure projects • BRABO • Reinforcement around port of Antwerp and increased capacity with the Netherlands • Permit process ongoing • Expected commissioning 2017-2018 • ALEGRO Extension CAPEX driven by integration of renewables & localisation of generation • Increasing renewables onand offshore need to be integrated • Localization of the power plants change • HVDC interconnection with Germany • Increased market liquidity, reliability and security of supply • Walloon government adopted the draft revision of the sector plan • Expected commissioning 2019 Elia Group full year results 2013 / Brussels, 28.2.2014 Replacement CAPEX • Mostly investments in the high and low voltage substations • Phase out of old population of assets commissioned before 1980’s Extension CAPEX driven by internal consumption • Investments due to the change in profile of the power needs, even if energy has decreased over time, • Delocalization of the electricity needs 10 / 30
- 11. 50Hertz: Major Investments BALTIC2 • Connection of 288 MW offshore wind park under construction • 3 cables, spanning 120km offshore and 16 km onshore • Expected to become operational in 2014 SOUTH-WEST CONNECTOR BARWALDE SCHMOLLN • Section Vieselbach – Altenfeld : under construction • Under construction • Section Altenfeld – Redwitz: Plan approval in preparation • Decision expected 3rd quarter 2014 Elia Group full year results 2013 / Brussels, 28.02.2014 • Innovative construction method minimizing costs • Expected to become operational in autumn 2014 UCKERMARKLINE & BERLIN NORTH RING SOUTH-EAST DC PASSAGE • Plan approved on first section Berlin North Ring • Project necessity defined and legally approved • Other section and Uckermarkline in ongoing plan approval phase • Part of German Grid Need Act • Decisions expected in 2014 • Joint project with Amprion (450 km) • Preparation of regional planning 11 / 30
- 12.
- 13. Corporate structure andshareholders’ structure Publi-T 45.22% Free float1 52.26% Publipart 2.52% Eurogrid International CVBA 60.00% Elia System Operator NV Elia Asset NV 99.99% Ampacimon 36.81% Elia Engineering 100% Elia Re 100% CASC 8.33% HGRT 24.50% Coreso 22.49% APX 29.02% Eurogrid GmbH 100% E offshore A LLC 100% Gridlab GmbH 100% 50Hertz Transmission 100% EEX 2.25% CAO 12.50% Coreso 10.00% EMCC 20.00% Atlantic Grid Investment A Inc. - 100% 50Hertz Offshore 100% Atlantic Grid A Interm. Holdco 10.00% Atlantic Grid A Operational Holdco Main change is the new participation of 50Hertz in the European Energy Exchange (EEX) Elia Group full year results 2013 / Brussels, 28.2.2014 13 / 30
- 14. Elia group :consolidated key figures (in € Mio) 2013 2012 1.389,5 1.306,6 6,3% EBITDA 486,9 455,5 6,9% (R)EBIT 345,4 305,4 13,1% Total revenues Finance result (108,5) (134,8) -19,5% Taxes (61,5) (16,2) • • 2013 56 % 2012 42 % 44 % 58 % 279,6% Net profit • • Net profit Change 175,8 155,0 13,4% Elia 50Hertz Positive evolution in EBIT(DA) due to improved EBITDA in both 50Hertz and Elia Finance result positively impacted by lower interest charges in Belgium and a change in discounting of auction revenues in Germany Taxes mainly increase due to the 2012 one-off effect in the figures of Elia Increase in the net profit of 13,4% to € 175,8 M as a result of the significant increase in Germany, partly compensated by the decrease in Belgium Elia Group full year results 2013 / Brussels, 28.2.2014 14 / 30
- 15. Elia: 2013 Regulated returns 5,96% (in€ Mio) 2013 Total revenues 832,7 2012 770,1 Change 100 80 8,1% 209,3 291,6 188,6 7,6% 11,0% In € Mio (R)EBIT 313,9 60 (109,2) (117,5) -7,1% 2,1 7,7 6,3 16,1 16,2 4,21% 40 Net profit • • • (23,4) 77,1 17,5 89,2 -233,7% -13,6% 13,5 53,5 63,8 20 5,3 6,9 19,3 2,98% 2,43% 51,6 0 -10 5,17% 3,44% 10 Taxes 0,1 3,8 8,2 50 30 Finance result 5,35% 90 70 EBITDA 5,59% 2010 -1,5 2011 Fair remuneration Incentive efficiency Other OLO 44,5 -0,4 2012 2013 Goodwill Incentive CAPEX ROE Total revenues, EBIT(DA) and taxes are impacted by the one-off effect in 2012 from the recognition of the deferred tax benefit on the transferable notional interest deduction reserve Finance result down mainly due to lower interests to be paid on the loan with floating interest rates Regulated profit (€ 75,6 Mio) fairly in line with 2012 (- 2,1%), net profit negatively impacted by the important discount effect of the recoverable pension cost last year Elia Group full year results 2013 / Brussels, 28.2.2014 15 / 30
- 16. Elia: 2013 Net profitevolution 2012 - 2013 Regulated asset base 2013 1,5 (7,1) 5,8 (0,9) (1,2) 3.935,1 Other - 17,3 (4,7) Goodwill decomissioning Changes in WC (10,1) 4,6 Depreciations New investments 89,2 77,1 2012 2011 2010 - 23,3 62,5 - 96,8 202,7 3,807,3 3,763,0 3.743,3 In € Mio • • Results are still suffering from low long term Belgian interest rate (2,43% in 2013 vs. 2,98% in 2012), partly compensated by higher goodwill decommissioning Negative effect from the recoverable pension cost is due to the important discount effect in 2012 Elia Group full year results 2013 / Brussels, 28.2.2014 16 / 30
- 17. 50Hertz: 2013 Dividend yield (in€ Mio) 2013 2012 45 Change 40 557,6 539,4 3,4% EBITDA 173,1 163,9 5,6% (R)EBIT Finance result 136,1 0,7 116,8 (17,5) 16,5% -104,0% 35 In € Mio (60%) Total revenues 15,24% 30 25 20 13,06% 11,01% 36,4 42,5 30,7 15 10 Taxes Net profit (38,2) 98,7 (33,6) 65,8 13,7% 50,0% 5 0 2011 2012 Dividend • • 2013 Yield Increased EBIT(DA) mainly a result from the increased cost recovery for investments, both in the old (T-2) and new system (T-0) Finance result positively impacted by discounting of auction revenues Elia Group full year results 2013 / Brussels, 28.2.2014 17 / 30
- 18. 50Hertz: 2013 Net profitevolution 2012 -2013 (1) Regulated asset base (1) 2013 5,4 (7,2) 3.064,0 3,0 22,0 Other 14,3 Changes in WC 18,9 (14,7) 20,9 15,8 (15,4) Depreciations 166,4 New investments 14,7 -313,4 -92,4 402,0 110,7 2012 2011 3.045,4 2.699,9 In € Mio • • Net profit mainly boosted by the increased cost recovery for investments, lower regulatory risk provisions and the discounting of auction revenues, partly offset by no EEG bonus and lower result on the Korridor model Regulated asset base growing with the important investments, however offset to a large extent by the improving EEG prefinancing position (1) Numbers are based on 100% of 50Hertz Elia Group full year results 2013 / Brussels, 28.2.2014 18 / 30
- 19. Elia Group: Consolidatedkey figures Debt 155,3 In € Mio 495 4 60 60 495 298 298 Maturity Short term borrowings 50Hertz EIB Elia 16,1% Within 3 - 5 y Shareholder loan After 5 y Eurobond 50Hertz 1.997,6 2012 • • • 2.244,0 Eurobond Elia Within 1 y 18,0% 65,9% 2013 Debt within Elia increased due to the refinancing of the € 500 Mio Eurobonds with the new € 550 Mio (15 y) and € 200 Mio (20y) Eurobonds. Short term borrowings decreased significantly within 50Hertz as a result of the positive evolution on the prefinancing of the EEG mechanism Maturity profile improved significantly with the new Eurobonds. In 2014, a € 500 Mio bond is coming to maturity Elia Group full year results 2013 / Brussels, 28.2.2014 19 / 30
- 20. Elia Group: Consolidatedkey figures (in € Mio) 2013 2012 Net debt 2.773,8 2.910,8 Long Term: A- Leverage (D/D+E) 55,31% 57,99% Outlook: Stable REBITDA/Gross Interest 3,96 3,08 Net debt / REBITDA 5,61 6,39 Average cost of debt 3,94% 4,93% % fixed of gross debt 84,37% 83,89% Standard & Poor’s rating Elia Group: • • • Moody’s rating German segment: Long Term: Baa1 Outlook: Stable Decrease in net debt is mainly a result of the significant improvement in the prefinancing of the EEG mechanism by 50Hertz Average cost of debt decreased thanks to the replacement of the Eurobond and low interest charges that were due on the floating interest loan Ratings were again confirmed for both Elia and 50Hertz Elia Group full year results 2013 / Brussels, 28.2.2014 20 / 30
- 21. Elia Group: Dividendpolicy CAGR = 2,22% € / share 1,38 1,40 1,47 1,47 1,54 79,3% 68,4% 64,5% 57,4% 53,1% 2009 Total amount paid out (€m) 2010 2011 2012 2013 66,6 84,5 88,7 89,0 93,3 Dividend Pay-out ratio Proven track record of growing dividend over time, with a compound annual growth rate of 2,22% Elia Group full year results 2013 / Brussels, 28.2.2014 21 / 30
- 22. Impact changed methodof consolidation for 50Hertz as of 2014 Proportionate consolidation Equity pick-up Change Total revenues 1.389,5 832,7 (556,8) EBITDA 487,0 313,9 (173,1) (R)EBIT 345,4 209,3 (136,1) Finance result (108,5) (109,2) (0,7) Taxes (61,5) (23,4) 38,2 Share of profit of equity accounted investees 0,3 98,7 98,7 Net profit 175,8 175,8 0,0 Total assets 6.532,2 5.555,7 (976,5) Net financial debt 2.733,9 2.628,4 (105,5) • No impact on S&P rating – consistently consolidating 50Hertz at 100% • Due to mechanical adjustment, ratio’s will look slightly worse. However no impact on financing as both Elia and 50Hertz are strictly ringfenced Elia Group full year results 2013 / Brussels, 28.2.2014 22 / 30
- 23.
- 24. Regulatory state ofplay Belgium • CREG wants to formulate a new tariff methodology by the end of 2014, including a framework for the offshore investments • A draft methodology will be issued by the CREG in June 2014 • Consultation round will be organized by the CREG from June up to the fall of 2014 • Afterwards the CREG will issue a new tariff methodology by the end of the year which will be used for the period 2016-2020 Germany • New tariff period has started as from 1 January 2014 • Positive changes in the Korridor model Elia Group full year results 2013 / Brussels, 28.2.2014 24 / 30
- 25. Elia Group: Investments2014 Elia 50Hertz 5% 3%3% 13% 35% € 252,5 M 26% € 505,2 M € 257,9 M onshore € 247,3 M offshore 2% 24% 89% Replacements Interconnections Non electrical investments Internal consumption Integrating renewables • Integrating renewables and investments due to generation localization are becoming more important in Belgium. • In Germany, investments increase year-over-year with 25,7%, mainly driven by the offshore connections Elia Group full year results 2013 / Brussels, 28.2.2014 25 / 30
- 26. Elia TSO –main investment projects 1 Stevin 2 Belgian Offshore Grid 3 Nemo - HVDC Connection UK 4 Brabo 5 Allegro – HVDC Connection Belgium-Germany 6 East Loop reinforcement 7 Interconnection BE-Lux 8 Reinforcement Avelgem • Auditor of the Council of State issued negative advices on the Flemish Regional Spatial Plan, which includes the approval of the Stevin project • Possible repercussions on Belgian Offshore Grid and Nemo Elia Group full year results 2013 / Brussels, 28.2.2014 26 / 30
- 27. 50Hertz – maininvestment projects 11 3 Existing grid Planning procedure Approval procedure Under construction Completed 10 1 1 Power Plant Substation (50Hertz) Substation (not 50Hertz) 9 1 3 Offshore connection Baltic 2 4 South-West interconnector 5 Grid connection UW Förderstedt 8 7 1 12 2 Bärwalde – Schmölln Fertig gestellt 1 1 1 Completed projects in 2013 and 2012 6 3rd interconnector to Poland 7 380-kV-Nordring Berlin 1 6 5 8 Uckermark-line Neuenhagen – Bertikow 9 Bertikow – Pasewalk 1 4 1 Elia Group full year results 2013 / Brussels, 28.2.2014 2 10 Offshore connections in Baltic Sea 11 Combined Grid Solution 12 Wolmirstedt – Perleberg 27 / 30
- 28. Belgium: Proposed changesin the Energy law Developments in the changing energy environment give rise to proposals from the legislator on adapting the energy law. Main topics of those resolutions: - Plan Wathelet: Installed capacity non-profiled units 14000 - 3.100 MW 12000 To further ensure the security of supply, the plan is introducing 10000 consultation about the needed volumes and activation of the strategic reserves MW the concept of strategic reserves. Role of Elia : yearly Max 8000 Min 6000 4000 2000 - Change in corporate governance rules Elia 0 January 2014 2014/2015 2015/2016 2016/2017 Composition of the different committees advising the Board of Directors will be changing - Offshore - Support mechanism for new wind farms has been decided upon - Elia will be granted the right to ask for the concession to construct the offshore platforms. Elia Group full year results 2013 / Brussels, 28.2.2014 28 28 / 30
- 29. Germany: Main outlineof the proposed amendment of the Renewable Energies Act (EEG) - RES share of electricity consumption to be between 40% and 45% by 2025 and between 55% and 60% by 2035 (previously minimum targets were set: 2020 35%; 2030 50%) A binding corridor for the deployment of renewables energies - Offshore wind target: 6.5 GW by 2020 (previously 10 GW by 2020) - 20,36 20 13,53 15 10 5 8,33 3,530 3,592 2011 2012 6,240 14,11 5,277 2,047 0 2010 2013 2014 Feed-in tariffs remain method of choice, mechanisms for quantitative expansion control to be introduced by 2018 (tenders to be tested for large solar power systems by 2016) - 23,58 Mandatory “market premium” with sliding premium for new RES plants Costs EEG surcharge Line of attack of the Energiewende remains unchanged. Elia Group full year results 2013 / Brussels, 28.2.2014 29 / 30 EEG surcharge [ct/kWh] - 25 Costs [Bn. €] Until now only key parameters have been established. The legislative process has not yet started. Entry into force is foreseen for August 2014.
- 30. Questions & Answers TomSchockaert Investor Relations +32 (0)2/546.75.79 tom.schockaert@elia.be www.eliagroup.eu Follow Us http://www.twitter.com/eliacorporate http://www.facebook.com/eliacorporate http://www.linkedin.com/company/elia Brussels, 28.2.2014