Presentation Annual report

Presentation Annual Report 2011
Mel Kroon (CEO)
Eelco
de Boer (CFO)
Jelle Wils
Wateringen,
17 April 2012 April 2012
17 April 2012
Wateringen substation: a key link
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2
2011: A dynamic year
•
BritNed cable linking the Netherlands and the UK successfully taken
into operation.
•
New high-voltage substations constructed at Eemshaven, Bleiswijk,
Wateringen and other locations.
•
Construction starts on South Ring of Randstad 380 kV project (start-up
in 2013).
•
Energy transition in Germany: three new offshore projects started in
Germany.
•
Greater possibilities for international trading thanks to intraday market
and market coupling.
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3
TenneT is building a customer- and
market-focused future
• Market developments
• Investments
• Annual results
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4
A strong company
Total grid size
Supply area
No. of substations
No. of end-consumers
Installed capacity
Revenue
Assets
Tangible fixed assets
No. of employees
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5
19,871 km
182,000 km
403
36 million
67,000 MW
1.3 billion euro
8.3 billion euro
5.1 billion euro
1940
Low tariffs, high security of supply
Grid availability
in 2011: 99.9995%
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6
Synergy through collaboration
Many opportunities for collaboration as an international company:
Quality improvements
Financial advantages
Knowledge exchange
Strong position in Europe
Examples:
Acceleration of market coupling process /
cross-border intraday trading
Joint procurement, emergency capacity
Integration of imbalance market
Coordinated deployment of phase shifters
Bundling of Norwegian cable projects
Annual savings: 30 million euro
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7
300 projects in the Netherlands
Total investment
of 5.5 billion euro
over the next ten
years
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8
Focus on innovation
•
Wintrack pylons
•
Underground 380 kV cable
•
Dynamic grid management
•
Offshore HVDC connections
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9
Investing in sustainable development
•
Wind farm in Noordoostpolder
municipality to supply enough
energy for 450,000 households
•
Six areas with decentralised
power generation to be
connected to national grid
•
Study into interconnectors to
Norway and Denmark
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10
Onshore projects
Germany
•
Upgrading of North-South
lines in Germany
•
Over 500 km of new
connections
•
Total investment: approx.
2.5 billion euro
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11
Offshore projects in Germany
Operational
Capacity in MW
BorWin1
400
Alpha Ventus
60
Under construction
Capacity in MW
HelWin2
690
DolWin2
900
Riffgat
108
SylWin1
864
HelWin1
576
DolWin1
800
BorWin2
800
• Nine connections: approx. 5 GW (equivalent to electricity consumption of
5 million households)
• Total investment of approx. 6 billion euro in period up to 2015
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Financing of existing offshore projects
Attractive investment concept
• Partnership with Mitsubishi Corporation for BorWin1 and BorWin2 projects
• Letter of Intent signed with Mitsubishi Corporation for HelWin2 and DolWin2
projects
• Ongoing talks with multiple investors
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13
TenneT is the largest investor in Germany's
energy transition
Aim of German government
• 35 percent of total energy supply produced from
renewable sources by 2022
• Wind farms in North Sea play key role
• Total planned capacity in period up to 2022: 11 GW
Challenges
• Capital requirement
• Pace of development
• Standardisation
Proposals for future connections
• Long-term planning
• Clear legal framework regarding liability
• Creation of German direct-current grid operator
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14
International connections
Interconnectors
BritNed cable successfully taken into operation
Doetinchem-Wesel interconnector (scheduled for completion in 2014)
DC interconnectors to Norway and Denmark (study phase)
Improving the system
Intraday trading with Norway (March 2012) and the UK (May 2012)
European market coupling: Denmark, UK and North-West Europe (2014)
Converging market prices
Interconnector capacity: from 2520 MW to 6750 MW
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Building the future
Reliable
Working on maintaining our high security of supply
Clean
Contributing to a sustainable future
Affordable
Keeping our tariffs low
Europe
Continuing to develop a Northwest European electricity
market
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16
Annual Report and
Financial Statements 2011
Eelco de Boer
April 2012
Key figures and ratios for the TenneT Group (in millions of euro)
(TenneT Germany included from 25 February 2010 onward)
Development of results
2011
2010
2009
1,525
1,323
543
• Generated by TenneT Netherlands
658
510
N/A
• Generated by TenneT Germany
829
773
N/A
38
40
N/A
357
159
136
• Generated by TenneT Netherlands
209
-41
N/A
• Generated by TenneT Germany
152
202
N/A
-4
-2
N/A
200
77
73
Revenue1)
• Generated by other activities
Operating profit
• Generated by other activities
Profit after tax
1.
Net revenue of TenneT Germany from purchase and sale of green electricity from 2011 onward: netting effect of approx. 8 billion
euro (2010: 6 billion euro over a 10-month period).
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Normalised operating profit of the TenneT Group
(TenneT Germany included from 25 February 2010 onward)
Development of normalised operating profit
Normalised operating profit
272
• Generated by TenneT Netherlands (1)
127
• Generated by TenneT Germany (2)
149
• Generated by other activities
2010
2011
(1)
234
(2)
93
(3)
-4
143
(4)
-2
1.
Correction for non-recurring benefit of 82 million euro in connection with reimbursement of indirect operating expenditure.
2.
Correction for non-recurring loss of 134 million euro (before tax) in connection with impairment of EHV grid.
3.
Estimated correction for harmonisation effect, resulting in a loss of 3 million euro.
4.
Estimated correction for harmonisation effect, resulting in a loss of 59 million euro.
17 April 2012
Key figures and ratios for the TenneT Group (in millions of euro)
(TenneT Germany included from 25 February 2010 onward)
Group balance sheet
2011
2010
2009
Total assets
8,570
7,054
3,570
Interest-bearing debt
2,591
2,426
1,379
Equity
2,049
1,300
728
8.8%
10.6%
3.2%
17.9%
19.7%
5.2%
Group ratios
Return on invested capital (before tax)
FFO / net interest-bearing debt
Credit ratings of TenneT Group: Standard & Poor's A-, Moody's A3 (both confirmed in early 2012).
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20
Developments with a bearing on TenneT's financial
situation
TenneT Group:
• European Investment Bank extends loan of 150 million euro to finance investments in
Randstad 380 kV programme.
• One billion euro in public bonds (with a maturity of 7 and 12 years) successfully placed with
institutional investors.
• State of the Netherlands provides capital injection of 600 million euro.
TenneT Netherlands
• Netherlands Trade and Industry Appeals Tribunal (CBb) rules in favour of TenneT's appeal
against the fourth Method Decision of the Netherlands Competition Authority (NMa). Following
this ruling, the Office of Energy Regulation paid a reimbursement of 116 million euro to TenneT in
2011.
TenneT Germany:
• Mitsubishi Corporation has a stake of 240 million euro in TenneT Offshore (BorWin1 and BorWin2
projects).
• Letter of Intent signed with Mitsubishi Corporation for HelWin2 and DolWin2 projects.
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21
Dividend paid out to State of the Netherlands (in
millions of euro)
Dividend in 2011 (net profit: 198 million euro)
60
Dividend history
Dividend in 2010 (net profit: 76 million euro)
20
Dividend in 2009 (net profit: 72 million euro)
11
Dividend in 2008 (net profit: 51 million euro)
10
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TenneT is Europe's first cross-border grid
operator for electricity.With approximately
20,000 kilometres of high-voltage lines and
36 million end-users in the Netherlands and
Germany, we rank among the top five grid
operators in Europe.Our focus is to develop a
Northwest European energy market and to
integrate renewable energy.
Taking power further
www.tennet.eu
17 April 2012