Romande Energie : Interim Report June 2021

INTERIM REPORT

2021

Romande Energie Group

UNITS

CURRENCIES

CHF Swiss francs

EUR euros

1. million
   bn billion

ENERGY
kWh	kilowatt hour
MWh	megawatt hour	1,000 kWh
GWh	gigawatt hour	1 million kWh
TWh	terawatt hour	1 billion kWh

CONTACTS

Medias relations

Michèle Cassani, Spokesperson T [phone] [e-mail]

Investor relations

René Lauckner, Head of Group Treasury T [phone] [e-mail]

STOCK EXCHANGE LISTING

SHAREHOLDER INFORMATION

The shares of Romande Energie Holding SA are listed on the SIX Swiss Exchange (ISIN code CH 0025607331).

PUBLICATION CREDITS

Romande Energie Holding SA

Rue de Lausanne 53

P. O. Box

CH-1110 Morges 1

T [phone]

F [phone]

www.romande-energie.ch

Printed in the region on sustainably sourced papier

CONTENTS

Romande Energie Group financial overview	2
Romande Energie Group consolidated financial statements	6

The English translation is based on the French original. In case of doubt the original French shall prevail.

Romande Energie Group - Interim Report June 2021

1

ROMANDE ENERGIE GROUP FINANCIAL OVERVIEW

Key consolidated figures

as at 30 June 2021 (unaudited)

In CHF thousands, unless otherwise stated		1.1.-30.06.21	1.1.-30.06.20	%
			restated	Change
INCOME STATEMENT
Net revenues		298 854	289 361	3%
Gross profit		168 919	163 915	3%
% of net revenues		57%	57%
Personnel expenses		( 67 918)	( 56 407)	20%
EBITDA*		69 508	79 555	-13%
% of net revenues		23%	27%
EBIT**		31 438	44 726	-30%
% of net revenues		11%	15%
Share of profit from associates		23 795	( 4 991)	n/a
Net profit		48 296	33 002	46%
% of net revenues		16%	11%
CASH FLOW
Net cash flow from (used in) operating activities		51 819	30 023
Net cash flow from (used in) investing activities		( 49 938)	( 93 017)
Net cash flow from (used in) financing activities		4 759	( 24 433)
OTHER DATA
Equity attributable to Romande Energie Holding SA shareholders		1 892 651	1 862 795
% of total assets		82%	82%
Shareholders' equity per share (in CHF)		1 844	1 769
Romande Energie Holding SA mid-year share price (in CHF)		1 340	1 025
Market capitalisation		1 375 262	1 079 378
Employees		1 146	985
*EBITDA: earnings before interest, taxes, depreciation and	**EBIT: earnings before interest and taxes
amortisation

• Romande Energie Group - Interim Report June 2021

H1 2021 financial highlights

• Solid EBIT from strong operational performance, offsetting higher committed costs linked to acquisi- tions.
• Significant increase in cash flow from operating activities to CHF 52m.
• Further growth in net revenues, rising by 10% to CHF 299m versus H1 2020 figures restated for a non- recurring gain.
• Group net profit amounting to CHF 48m, boosted by financial turnaround at EOS Holding and Alpiq.

EBIT powered by strong operating performance

Romande Energie achieved EBITDA of CHF 70m and EBIT of CHF 31m in the first six months of 2021. This represented sharp increases of 13% and 18%, respectively, relative to the prior-year period, adjusted for a CHF 18m non-recurring property sale. (Unadjusted, EBITDA and EBIT decreased by 13% and 30%, respectively.)

The Energy Solutions and Romande Energie Services business units drove this sharp improvement in business profits, largely unscathed by the pandemic and helped by the nascent economic recovery. As expected, the Grids business unit was stable but still played a significant part in the formation of operating profit.

The largest change was seen in the operating profit from the installation operated by Forces Motrices Hongrin-Léman, which was almost CHF 5m higher than its 2020 level.

Further revenue growth, stemming mainly from services Top-linegrowth for Romande Energie Group continued uninterrupted during the first six months of 2021. Net revenues increased by 10% relative to the prior-yearperiod, adjusted for the above-mentioned non-recurringitem (unadjusted +3%), to stand at CHF 299m.

Each of the three business units contributed positively to revenue growth, especially the services business - for which half-year revenues increased by 46%, equating to CHF 20m. Half of this increase stemmed from acquisitions consolidated during the first six months of the year.

Romande Energie's ownership interest in the FMHL installation was highly profitable thanks to the uptrend in power prices, adding CHF 4m in additional revenues over and above the prior-year period.

Starting from full-year 2020 financial statements, taxes collected on behalf of public authorities re-invoiced to customers have been netted against purchases of energy, goods and services. Up to the financial statements for H1 2020, these taxes had been recognised under revenues. This accounting change was made to enhance comparability of net revenue figures with other industry firms. A restatement of the prior-year period was carried out, whereby the net revenue figure was reduced by CHF 34m.

An identical amount was deducted from energy purchases. This restatement had no impact on half-year EBIT or net profit.

Higher operating expenses due to acquisitions

In conjunction with higher revenues, personnel expenses advanced by 20% to CHF 68m and other operating expenses rose by 13% to CHF 31m, versus the prior-year period - to a large extent due to corporate acquisitions. In total, 161 new members of staff (+16%) joined Romande Energie in the 12-month period to 30 June 2021. The Group's headcount stood at 1,146 at this date.

Strong net profit as EOSH and Alpiq remained profitable

A CHF 2m charge was recognised under amortisation of intangible assets in connection with the 20-year amortisation of operating permits. These had been capitalised subsequent to the acquisition of a portfolio of French wind-farm projects in 2020.

As previously disclosed, the Group repaid two bond issues at maturity for a total of CHF 100m in order to mitigate negative- interest costs. As a consequence of the reduced debt, the financial result improved in the first six months of 2021 by nearly CHF 1m.

The share of profit from associates was highly beneficial to first-half net profit, representing a gain of CHF 24m versus a loss of CHF 5m in the first six months of 2020.

Alpiq's return to profitability as at 31 December 2020 remained intact as at 30 June, as shown by a profit of CHF 54m compared with a loss of CHF 84m in the first six months of 2020. Added to the operating profit by EOS Holding SA, the cumulative impact amounted to CHF 17m compared with a loss of CHF 6m in the prior-year period. The Group owns a 29.71% interest in EOS Holding SA, which in turn owns 33.33% of Alpiq.

Romande Energie recorded a strong net profit, which rose by 222% versus the prior-year period if adjusted for non-recurring items (unadjusted +46%) to stand at CHF 48m.

Romande Energie Group - Interim Report June 2021

3