FY 2007 Consolidated results Financial impact new regulation
Analyst meeting February 15th, 2008
Disclaimer
• This presentation is 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-todate 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.
Agenda
Summary Highlights 2007 Financials 2007 Outlook 2008
Summary • Highlights 2007 - Energy Consumption influenced by mild weather, increased penetration of cogeneration and renewables - Approved 4 year tariffs (2008-2011 included) - Full realisation of investment plan - Successful management of controllable costs - Growing success of Belpex - Update on Elia’s shareholdership and participations
• Financials 2007 - Improved profit margin with respect to forecast - Increase in dividend to € 1,30 a share
• Outlook 2008 - New regulation with 4-year tariffs - Capex 2008-2011
Agenda
Summary Highlights 2007 Financials 2007 Outlook 2008
1. Energy Consumption in Elia’s balancing zone Injected energy Elia’s balancing zone per month GWh/ month
Total Energy consumption in Elia’s balancing zone decreased slightly to 88,8 TWh in 2006 from 89,4 TWh in 2006
This is mainly due to : • Mild temperatures throughout the year
Fe b M aa rt Ap ri l M ei Ju ni Ju li Au g Se pt O kt N ov D ec
Ja n
9000 8000 7000 6000 5000 4000 3000 2000 1000 0
Real 2005 - GWh
Real 2006 - GWh
Real 2007 - GWh
• Increasing local production at industrial clients
Montly deviation from norm al average tem perature (KMI based) °C 7,0 6,0 5,0
• Energy from renewables (wind & biomass) directly injected in distribution network
4,0 3,0 2,0 1,0 0,0 -1,0
Jan
Feb
Maar t
Apr i l
Mei
Juni
Juli
Aug
-2,0
2005
2006
2007
Sep
Okt
Nov
Dec
2. Evolution of tariffs since 2001 First increase in tariffs since 2001 due to new capex, higher financing costs, flat tariffs (incl. inflation 09-11) & less surpluses from the past to reverse
Tariffs for use of the grid and tariffs for ancillary services: comparison 2001 - 2008 16 14 12 10 8 6 4 2 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (Q4) (Q2to Q4)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (Q4) (Q2to Q4)
Onthe380/ 220/ 150kV network
Annual power
At transf ormer output tothe70/ 36/ 30kV network
System management
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (Q4) (Q2to Q4) Onthe70/ 36/ 30kV network
Ancillary services
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 (Q4) (Q2to Q4) At transf ormer output tomediumvoltage
Loss compensation
0
Infrastructure Losses System Services Sweden
Spain
Slovenia
Slovak Rep
Romania
Portugal
Poland
Norway
Netherlands
Lithuania
Italy
Ireland
Hungary
Greece
Great Britain
Germany
France
Finland
Estonia
Denmark West
Denmark East
Czech Republic
Belgium
Austria
( â‚Ź / MWh )
ETSO European comparison 2006 tariffs
25
20
15
10
5
Other regulatory charges
3. Investments 2007 Breakdown CAPEX
CAPEX 2007 € 142,6 m
3%
• Focus on reliability and internal demand as well as for
17% 29%
51%
• Full realisation of capex plan 2007
44%
• supporting local production at site of industrial clients • increased co-generation and renewables
48%
• managing international flows
Replacements
Driven by interconnections with neighbours
Driven by internal consumption
Driven by import levels & generation localisation
Investments 2007 •
150 kV underground cable between Monceau & Thy-le-Château • Strengthen electricity supply in South-west part of Belgium • Includes new 150 KV transformer in Thy-le-Château • Completed in May 2007 • Investment of about € 15m
•
Completion of replacement of 70kV line Beerse-Turnhout-Mol • Replacement of overhead line • 117 pylons • To be completed in Q1 2008 • Investment of about € 12m
Investments 2007 •
Extensions and developments at the port of Antwerp • New 150 kV Petrol high-voltage station • Extension of high-voltage station “Scheldelaan” to connect new production unit of Exxon (WKK) • Started in Q1 2007 and to be completed in December 2008 • Investments of about € 20m
Investments 2007 •
Purchase of 3 phase shifters • Van Eyck & Zandvliet high -voltage station • The biggest of their type in the world (each 1400 MVA) • Enable to better spread the energy flows on the Elia grid • Optimise interconnection flow with the Netherlands and increase border capacity, mainly in the summer • Started in Q3 2006; • In service planned 1H 2008 due to technical issue with equipment as delivered by manufacturer
4. Successful management of controllable costs Good operational results : very reliable network > 99,999% Average interruption per client per year on Elia-net
•
Highly resilient network
Time (h:mm:ss)
0:14:01
• Meshed network • Improved installation of safety and control equipment
0:07:00
• Average interruption time per client and per year: 3min. 32sec.
0:00:00 1999
2000
2001
2002 AIT (min)
In € m (IFRS)
2003
2004
2005
2006
2007
AIT 5-year (min)
2004
2005
2006
2007
Personnel costs 122,9 G&A expenses 147,8 Telecom & third party serv. -11,2
117,2 144,0 -9,4
116,5 146,2 -9,7
114,0 150,9 -12,3
Total net controllable costs 259,5
251,8
253,0
252,6
•
Total net controllable costs decreased with 2,7% since 2004 despite inflation of 2% a year thanks to : • Increased efficiency • Operational excellence • Replacement of retired personnel
5. Belgian Power Exchange (Belpex)
• •
2007 was 1st full year of operation
•
In 2007 average daily volume was following average electricity prices : - Belix - Belix peak (8am-20pm) - Belix off-peak (20pm-8am)
24 diversified participants (suppliers, traders, producers) from 6 countries (NL,CH,UK,FR,BE,DE,CZ) at Dec 31 st, 2007 20.788 MWh with the €41,85/MWh €53,56/MWh €30,13/MWh
•
Record volume of 53.306 MWh on December 20th, which equals 21,3% of average Belgian electricity demand
•
Market coupling induced an average export volume of 2.438 MWh and an average import volume of 2.896MWh
Belpex volume growth in 2007
Monthly baseload volume & average prices
MWh
Base load volume
Powernext price
APX price
Belpex price
900 000
â‚Ź/MWh 200.0
846 546 795 093
800 000
180.0
785 118
733 335
160.0
684 643
700 000
659 608
654 124
140.0
608 424
600 000 516 800
500 000
120.0
502 009
436 012
100.0
400 000
365 175
87.4
80.0
300 000 61.6
67.3
200 000
60.0
40.0 40.6 34.8
100 000
30.4
26.8
28.7
Mar-07
Apr-07
35.9 28.7
30.3
28.1
Jun-07
Jul-07
Aug-07
20.0
0
0.0 Jan-07
Feb-07
May-07
Sep-07
Oct-07
Nov-07
Dec-07
FR-BE-NE TLC 2007 Usage of transmission capacities
Border
Belgian-French border Constrained
Belgian-
Constrained
Dutch border
Unconstrained
Unconstrained
F ≠ B ≠ NL
F = B ≠ NL
1,6 %
26,4 %
F ≠ B = NL
F = B = NL
9,4 %
62,7 %
6. Update Shareholdership & participations Suez/ Electrabel
Publi-T
24,36%
Publipart
Freefloat
2.54%
33.03%
40,07%
(2)
Elia: A Single Economic Unit Elia System Operator
Licensed System Operator
99.99%
Network Owner
Elia Asset(1)
HGRT 12/2001
• •
17% Shareholder of Frenchbased electricity power exchange Powernext Foreseen to increase participation to 51%
(1) 1 share Publi-T, 1 share Electrabel
100%
60%
24.5%
Belpex 07/07/2005
•
Belgian power exchange
100%
Elia Re 05/02/2002
•
Captive reinsurance company
BEL Engineering 26/12/2003
•
Engineering consultancy firm mainly involved in the design and project management of electricity network-related infrastructure
(2) Includes 0,54% Employee shareholdership (estimate)
Agenda
Summary Highlights 2007 Financials 2007 Outlook 2008
Overview of Key IFRS Figures
IFRS Income statement (€ million) Consolidated turnover EBITDA (1) Operating result (EBIT) Financial result Taxes Consolidated net profit Net profit per share (€) Dividend per share (€) Balance sheet (€ million) Total assets Equity Net debt Equity per share (€) Total number of shares (end of period)
2007 2006 731,7 711,5 308,5 292,6 214,7 204,0 (104,0) (98,3) (32,9) (29,8) 77,6 75,9 1,62 1,58 1,30 1,28 31/12/2007 31/12/2006 3.977,9 3.898,1 1.339,9 1.308,6 2.140,0 2.074,9 27,88 27,32 48.061.695
(1) EBITDA = EBIT + depreciation + changes in provisions
47.898.052
Change In % 2,8% 5,5% 5,2% 5,8% 10,4% 2,2% 2,5% 1,6% 2,0% 2,4% 3,1% 2,0% 0,3%
2007 Profit and Loss Bottom-up Approach of Elia’s P&L in 2007 (EUR m) Determination of net profit
654,0
Non tariff
68,1
Shortfall
9,9
Average RAB 2007 Reference equity (33%) Cost of equity Equity reference remuneration (A) Av. equity / Av. assets Deviation on ref. equity Equity deviation remuneration D-factor (B)
Costs Tariff
653,6
-8,18
Fair remuneration (A+B+C)
62,77
Net profit Belgian GAAP (tariffs)
Net profit
(1) (2)
5,02 67,79
Consolidatie Belpex / HGRT
0,26
IFRS reconciliation
9,56
Net profit IFRS
Charges
33,91% (2) 0,91% 2,72% (3) 0,87
Over-depreciation (C)
Appeal BM 05 & Settlement BM 06
77,6
3.512 1.159 6,05% (1) 70,08
77,61
Revenues
OLO of 3,423%; Beta of 1,033 and a risk premium of 2,54% Av. Equity =1.303,1 and Av. Assets = 3.842,8
(3) OLO of 3,423%; deviation rate of 70bp and tax rate of 33.99%
Reconciliation Be GAAP - IFRS IFRS Impact on Equity and Net Profit for year ending 31 December 2007 4,8
2,3
68,0 13
2,3
Regulatory Assets
Elia Re
Net Profit
17,8
77,6
2007 Belgian GAAP
Employee Benefits
1.340,8
Deferred taxes Capitalisation Software
78,1
13,0
13,7
12,2
Regulatory assets
Deferred taxes
Capitalisation software
Elia Re
16,1 (1)
2007 IFRS
1.338,7
Equity
(135,2)
2007 Belgian GAAP
Employee benefits
Others
2007 IFRS
(1) Mainly relates to Inventory valuation (€3,7m), goodwill Bel engineering (€ 5,6m) and IAS 32/39 on the interest rate swaps (€7,1m)
Regulated Asset Base 2007 Evolution 2007 RAB
3.583
3.443
98
(90)
2006
Average RAB
(9)
(1)
Depreciation Divestments
142
Capex
3.442
Change in WCR
2007
3.512 (1)
Includes â‚Ź 6 million goodwill decommissioning
Working Capital Requirements 2007 Changes in Working Capital Requirements (EUR m)
(1)
81,9
2007
9,9
31,4
(46,5)
21,0
97,7 Inventory & trade debtors <1 year
(1)
Deferred charges and accrued income
Trade creditors & others
Based on Belgian GAAP accounts
Accrued charges & deferred income
Shortfall 2007
Total Change in WCR
Breakdown Costs Evolution of Costs between 2007 and 2006 (EUR m) 654,0
635,6
138,8
+0,7%
150,9
+3,2%
114,0
-2,1%
19,6 93,8
104,0 32,9 (1)
2007 (1)
137,8
Ancillary services (reserve energy)
146,2
Raw materials, Services & Other goods
116,5 18,5
+6,0% +5,8% +10,4%
Personnel Expenses Others
88,5
Depreciation
98,3
Financial charges
29,8
Taxes
2006
Tax authorities claimed â&#x201A;Ź 93,6m (without notice of fraud) which was booked as debt. This was compensated by a receivable of the
same amount as agreed with external experts. Elia, in conjunction with the CREG, decided to appeal against this decision.
Non - Tariff Revenues Breakdown of Non – Tariff Revenues in 2007 and 2006 (EUR m) 94,3
68,1
62,6 43,1
15,8 12,3
International revenues (due to TLC efficiency)
-31,2%
% +36,2 % +26,8
11,6
Fixed assets own construction capitalised
9,7
Telecom & third party services
10,4
Others
(1)
-3,1
2007 (1)
2006
In 2007 « Others » includes € -13m reversal of the regulatory asset as a result of a new collective agreement (one-off payment)
Tariff Revenues Breakdown of Tariff Revenues in 2007 and 2006 (EUR m) 677,2
653,6 9,9%
29,4
-4,3%
134,8
71,9%
49,8
32,3 129,0 85,6
-12,2%
406,7
463,2
Connection tariffs Tariffs for ancillary services Tariffs due to previous surpluses
Tariffs decrease for grid use (due to weather conditions and increased co-generation and renewable energy services directly injected on DSO grid)
60,0 9,9
2007
2006
0,5
Operational
13,3
Shortfall on costs
4,9
Appeal BM 2005
46,7
Surplus revenues (tariff & non-tariff)
4,5
Settlement BM 2006
Overview treatment of surpluses Overview of allocation and use of total surpluses In millions of EUR
Surplus 2003 Bonus 2003 Used Total 2003 Surplus 2004 Bonus 2004 Used Total 2004 Surplus 2005 Bonus 2005 Surplus 2006 Used Totaal 2005 Surplus 2006 Malus 2006 Used Totaal 2006
Surpluses/ (Shortages) 134,6 3,2 137,8 118,9 3,5 122,4 35,1 2,3 3,8 41,2
2004
2005
2006
2007
25,4
36,4 3,2 -39,6 0,0
36,4
36,4
-36,4 0,0
-36,4 0,0
9,8 3,5 -13,3 0,0
9,8
23,8
23,8
23,7
-9,8 0,0
23,8
23,8
23,7
-25,4 0,0
28,0 -28,0 0,0 7,4
-7,4 0,0
56,2 1,8 58,0
-0,5 -4,9 -4,5 -9,9 349,5
(1) To be allocated by CREG in the next regulatory period
2009
2010
2011
5,6 -5,6 0,0
118,9 3,5 -51,1 71,3 35,1 2,3 3,8 -41,2 0,0
50,6 1,8
56,2 1,8 -5,6 52,4
52,4 20,9
-0,5 -4,9 -4,5 -9,9 (1)
Total 134,6 3,2 -137,8 0,0
27,7 2,3 3,8 -33,8 0,0
Reversal decided by regulator for period 2008-2011 Shortage 2007 Appeal B/M 2005 Bonus 2006 Totaal 2007 Total Surplus
2008
22,8
34,0
46,0
123,7 -0,5 -4,9 -4,5 -9,9 113,8
Financial Debt Position Elia benefits from a strong credit rating € millions
Standard & Poor’s rating: Long Term:
A-
Outlook:
Stable
2.000 1.500
250,0
2.140,0 2.074,8 62,1% 61,9% 3,0 3,0 6,9 7,1 5,0% 4,8% 73,2% 74,7%
40,0
996,8
996,3
883,5
883,5
Unused Credit lines European Investment Bank Commercial Banks : Short term
Amount (€ m) 65 570
Interest rate Euribor + 5 bp To be negotiated
(1)
0 31/12/2007 Shareholders' loans
(1)
2006
200
60,0
1.000 500
Net debt Leverage (D/D+E) EBITDA / Gross interest Net debt / EBITDA Average cost of debt % Fixed of gross debt
2.119,8
2.190,3
2007
31/12/2006
Eurobonds
Banks LT
European Investment Bank
In 2009, a shareholders’ loan of € 387,7m has to be repaid. Refinancing is currently investigated and will depend on the market conditions at that time
Dividend Policy Elia’s dividend policy ensures a steady dividend 2,05 (1)
2,1
In EUR
1,6
89,60%
1,27
1,17
1,27
89,90%
1,28
91,80%
1,30
1,1
0,1 -0,4
79,26%
77,59%
2002
85% 80%
80,91%
0,6
90%
75% 2003
2004
Dividend
2005
2006
2007
Pay-out ratio
• Increase in dividend to € 1,30 per share • Pay-out ratio over 2007 Belgian Gaap result is 91,8% (80,5% under IFRS) (1) Contains exceptional dividend of EUR 0,88
70%
Agenda
Summary Highlights 2007 Financials 2007 Outlook 2008
Update on legal & regulatory aspects
Law 29/4/99
New Royal Decrees
• • • •
4-year tariff mechanism Concept of return on RAB and incentivisation Embedded financial debt Corporate governance principles
• • • •
4-year tariff starts on January 1, 2008 Return based on European benchmark Indexing formulae for controllable costs Reform of federal regulator
• • • • •
Determination of total revenues/fair remuneration Determination of RAB & its evolution Tariff structure (numbers & composition) Clarification e.g. controllable / non-controllable costs Allocation of balances between real & budgeted revenues/costs
•
Parameters of incentivisation
June 1st, 2005
July 20th, 2006
June 8th, 2007
December 18th, 2007
CREG
•
Admission first tariff proposal by Elia
•
Admission adjusted tariff proposal by Elia November 26th, 2007
•
Approval of 4-year tariffs
June 29th, 2007
December 14th, 2007
Most important changes 1. 4-year tariffs from 01/01/2008 2. Split between controllable & non-controllable costs & revenues 3. Clarification on definitions : ď&#x192;&#x2DC; Working capital requirements ď&#x192;&#x2DC; D-factor : Equity / RAB 4. Reporting to regulator : semestrial 5. Balance between real and budgeted noncontrollable costs to be allocated by council of ministers
4-year tariff system… Implementation of concept “controllable – non controllable” costs & revenues
PAST
FUTURE
NC Non C (2) Tariff
Non Tariff
Non Controllable(NC) Costs Costs Tariff
Tariff
Controllable(C) Costs (1)
Net profit
Charges
Net profit
Revenues
Charges
Revenues
1)
Mainly consist of purchases of materials, services and other goods & remuneration except the ancillary services & pension costs for retired employees
2)
Mainly consist of Telecom services, Third party services, surplus value on sale fixed assets and insurance claims
…with netting of costs & revenues Reclassify costs, revenues => controllable & non-controllable
NC C
Non Tariff
Tariff Net profit
Non (2) Controllable(NC) Costs Tariff
C NC
(1)
Controllable(C) Costs
Net profit
Charges
Revenues
1)
Mainly consist of purchases of materials, services and other goods & remuneration except the ancillary services & pension costs for retired employees
2)
Mainly consist of Telecom services, Third party services, surplus value on sale fixed assets and insurance claims
Composition of future net profit
1. Fair remuneration
Equity remuneration based on formula
Deduction over-depreciation of the past (€ 8,2m net) till Q3 2012
2. Decommissioning
Goodwill from decommissioning passed into tariffs
Extra profit reserved for financing investments
3. Incentivisation on controllable costs
Ceiling set at same amount as efficiency gain (X-factor)
1. Fair remuneration The FORMULA : (art.8 ยง2 R.D. June 8th, 2007)
33% * RAB * [ OLO(2) + (risk premium * Beta) ] + (Equity/RAB(1) - 33%) * RAB * (OLO(2) + 70 bp)
(1) In case (Equity / RAB) < 33% than fair remuneration equals 33% * RAB * [ OLO + (risk premium * Beta) ] (2) OLO = Belgian 10 year bund
Fair remuneration (Equity remuneration)
• Equity divided in two parts: part #1 : till 33% of RAB part #2 : from 33% of RAB till real Equity Value
• Fair remuneration on Equity: part #1 : Belgian 10year bund + (βeta ∗ risk premium)
with risk premium = 3,5 % & βeta = minimum 0,3 part #2 : Belgian 10year bund + 70 bp Note : Real Belgian 10year bund (daily average) is computed every year and ex-post
Fair remuneration
(Determination of βeta)
• Beta is computed for a period of 7 years • Elia Beta OR minimum of 0.3 is applicable from 2012 onwards • Transitory period for Beta calculation for period 2008 till 2011 Weight of Electrabel beta becomes less important over time Weight of Elia beta becomes more important over time 1
2
3
4
5
6
7
βeta 2008
2002
2003
2004
2005
2006
2007
2008
βeta 2009
2003
2004
2005
2006
2007
2008
2009
βeta 2010
2004
2005
2006
2007
2008
2009
2010
βeta 2011
2005
2006
2007
2008
2009
2010
2011
ELECTRABEL
ELIA
2. Decommissioning
(goodwill remuneration)
• € 1,7 billion goodwill is allocated to fixed assets • In case of decommissioning, relating goodwill is remunerated through the tariffs
• No amortization in profit and loss accounts (generates extra EBIT & net profit)
• Taxes due to extra EBIT covered by tariffs • Net profit from decommissioning to be reserved for financing investments and equity value
Decommissioning (Explanatory Example)
• •
Fixed assets of € 2m net book value is decommissioned Allocated goodwill to this fixed asset is € 3m
Impact on tariffs (Additional costs to be remunerated) 1. Exceptional depreciation 2. Goodwill decommissioning 3. Additional taxes Total
€ € € €
2m 3m 1,5 m (€3m/(1-33%)) 6,5m
Impact on revenues • € 6,5m as depreciation, taxes and goodwill are all remunerated Impact on costs • •
€ 2m exceptional depreciation € 1,5m additional taxes
Impact on net profit • •
€ 3m from goodwill decommissioning This profit has to be reserved in equity as to finance investments
X factor
(controllable costs) €m
260,6 (1)
255,3 -4m 251,3
–6m 254,6
265,3 -7m 258,3
270,3
Budget including CPI
-8m 262,3
-X = -25m in total CPI-X
CC approved by regulator includes –X
255,3
2008
2009
2010
2011
• Regulator approved € 251,3m net controllable costs for 2008 (255,3m net CC minus X = € 4m cost savings) • Net controllable costs will evolve in 2009-2011 with CPI-X • Fixed cost savings in € (X) determined by R.D. (Dec 18 th, 2007) • Total outperformance (Y) agreed with regulator as max X (1)
Controllable non-tariff revenues
Incentivisation
(controllable costs)
EX-ANTE
EX-POST
â&#x201A;Źm
Recompute for inflation (non controllable)
CC
(1)
CC
real
Incentive Y = max (X)
NCC (non-controllable costs)
(1)
After deduction of X savings by regulator for the period 2008-2011 on controllable costs
Summary of changes New system
Old system
Belgian 10-year bund
Year X
Year X-2
Risk premium
3,50%
2,54%
Elia share with min. 0.3
ELB share (recalculated)
10year bund + 70bp
(10year bund + 70bp) * (1-t)
Equity / RAB
Equity / Balance sheet
Excluding Fin. Debt
Including short term Fin. Debt
3) Decommissioning
Deducted from RAB Included in tariffs
Deducted from RAB Not included in tariffs
4) Incentivisation on controllable costs
Max. â&#x201A;Ź25m period 08-11
Bonus Malus
Allocated by Council of Ministers
Allocated by CREG
1) Fair remuneration
Beta Remun. Equity > 33% 2) Definitions D-factor Working capital Req.
5) Balance of noncontrollable costs
Outlook 2008: RAB Evolution 2008 RAB as approved by CREG 3.653
3.568
31 (90)
2007
Average RAB
Depreciation
(17)(1)
Divestm. & Decomm.
161
Capex
3.501 (1) Contains â&#x201A;Ź 14,2m of goodwill reduction due to decommissioning
Change in WCR
2008
3.611
Outlook 2008: Fair remuneration Determination of net profit 2008 by the regulator (Belgian GAAP)
Average RAB 2008 Reference equity (33%) Cost of equity (3) Equity reference remuneration (A)
CREG 3.611 1.192 (1) 5,17% 61,6
Av. equity / Av. RAB (3) Deviation on reference equity Equity deviation remuneration (3) D-factor (B)
36,45% 3,45% 4,63%(2) 5,8
(3)
Over-depreciation (C)
-8,2
Fair remuneration (A+B+C) =(1)
59,2
(3)
Goodwill decommissioning (2) (3) Controllable cost incentive (3) = Y
Net profit as set by regulator(=1+2+3) (1) (2) (3)
14,2 0,0 73,4
OLO of 3,9278%; Beta of 0,3542 and a risk premium of 3,5% OLO of 3,9278% and deviation rate of 70bp To be recomputed ex-post based on real OLO, real beta, real RAB & Equity, real decommissioning and real controllable cost savings
Not available for profit distribution; â&#x201A;Ź14,2 is the estimated yearly amount for the period 2008-2011
Outlook 2008-2011: CAPEX Breakdown CAPEX
CAPEX 2008-2011 € 615 m
CAPEX 2008 € 161m
5%
7%
13% 33%
49% 44%
12%
35%
46% 48%
Replacements
Driven by interconnections with neighbours
Driven by internal consumption
Driven by import levels & generation localisation
New Projects, Services, Activities •
Major projects in study phase • Enforcement of Antwerp port & region • 380 kV line towards Belgian coast (off-shore wind energy) • Interconnections with UK and Germany
•
Services • to -
be launched in 2008 Intraday allocation mechanism at border with NL Belpex : Continuous DAM & Intraday market Increased participation in Powernext through HGRT
• Contemplated for 2009 and beyond - Regional market between Benelux – Germany – France
•
Activities • pursuing « operational excellence » • first activities (consulting) abroad
Questions & Answers Investors Relations – Contact details Bert Maes Tel: + 32 (0)2/546.72.39 Mail: bert.maes@elia.be Website: http://www.elia.be
FY 2007 Consolidated results Financial impact new regulation
Analyst meeting February 15th, 2008