The most important infrastructure. Of all.
One focused business
The most important infrastructure. Of all.
3
Facts 2014 Grid size
11-12,000 km high voltage lines
Substations
170
Employees
1121
Balance sheet
NOK 41,1 billion
Revenues (adj)
NOK 6,2 billion
EBITDA (adj)
NOK 3,2 billion
Profit after tax (adj)
NOK 1,3 billion
4
The most important infrastructure. Of all.
One defined mission
“
To build the next generation power system in Norway by 2030.
The most important infrastructure. Of all.
5
2
Focused investments
Investments in the power system - the long term picture
Focused investments
7
Bringing Statnetts investments to a new level (Investments in billion NOK) 12 Expected Investments (2014)
11 10 9 8 7 6 5 4 3 2 1 0 2011
2012
Focused investments
2013
2014
2015
2016
2017
8
2018
2019
2020
Projects under construction 2015
Secure power supply Lofoten (substations) 2015
Lakselv substation 2015
Increased transformer capacity Northern Norway (substations) 2017/2018
Ørskog-Sogndal (new powerline)
Ofoten - Balsfjord (new powerline) 2017/2018 AC-cables Tjeldsundet (reserve power) 2015
Voltage upgrade Central Norway; Klæbu-Namsos and NamsosNedre Røssåga 2017 Increased transformer capacity Eastern Norway 2015/2016
Voltage upgrade west corridor; SolholmArendal Feda-Ertsmyra Lyse-FørreSaurdal NSN, sea cable connecting Norway and Great Britain 2021 Focused investments
New 420 kV AC cables Oslofjord 2018
Nordlink, sea cable connecting Norway and Germany 2020
Recently commissioned: - Skagerak 4 - Sima-Samnanger - Østre Korridor - Varangerbotn-Skogfoss - Ytre Oslofjord
Connecting the European power market
NSN (UK) -Capacity app. 1400 MW -Est. compl. 2021
NordLink -Capacity app. 1400 MW -Est. compl. 2020
Focused investments
Needle eye
https://vimeo.com/136111749
60 helicopter flights per tower – 36 000 for the Ørskog – Sogndal project in total
Work in high voltage environment
Marine operations – laying of sea cable
Health and safety, comes first – always Development injury frequency, incl. Contractors, (12 month rolling mean)
10 9 8 7 6
5 4 3 2 1 0
2013-12
2014-02
2014-04
2014-06
2014-08
2014-10
Absence frequency of iinjury in Statnett H1-verdi Statnett Skadefraværsfrekvens Statnett
• Injury frequency halved • No severe environmental damages • Stable, absence due to illness- 3,2 in 2014 12
2014-12
3
S&P research update, May 2014
Ownership and financing
“
The TSOs essential role in the power system makes it important that these functions are unified and owned by the State. 2012 Meld. St. #14
Long term state ownership All investments politically sanctioned (license, white paper on grid development) Equity injection 2014 supported by two governments Mature and predictable regulation «Business Risk: Excellent»
17
Predictable revenues and profitability 1. Revenues:
Costs 40% Costs 60% efficiency score Efficiency score: 100% Successful benchmark with other European TSOs The 15% efficiency programme Timely compensation No time lag on investments, system service costs or depreciation, two years lag on operational costs (compensated with inflation)
2. Regulated rate of return: (2,5%+inflation+0,875*5%) * 40% + (5ySwap rate+margin) * 60% 0,73 «Business Risk: Excellent»
18
Conservative finance policy Sufficient liquidity • 12 months reserves • NOK 6,5 bn RCF Low counterparty risk • Minimum rating requirements • Credit Support Annex (CSA) Reduced interest rate risk • New regulated rate of return from 2013 • Seek to correlate rate on debt with NVE-interest rate
Low finance risk
20
Multiple sources of capital
as of 30.06.2015
Issues in SEK (SEK 200 million) Domestic Bonds (NOK 6 060 million) Issues in CHF (CHF 400 million) Issues in JPY (JPY 4 000 million) Drawn Bank Loans EIB & NIB (NOK 5 466 million) Issues in USD (USD 720 million) Issues in EUR (EUR 70 million) Issues in Domestic Commercial Papers (NOK 500 million)
Low finance risk
21
Low re-financing risk
as of 30.06.2015
2000
Bank Loans (EIB & NIB) Domestic Bonds International Bonds
1500
Commercial Paper
1000
500
0 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043 2045
Low finance risk
22
Long term funding NOK 3.1 billion in new long term loans in 2014 • Three transactions from two different markets • Average volume weighted tenor 11,5 years Significant funding program going forward – across markets
Core bank group:
Low finance risk
23
5
Summary
Disclaimer This presentation has been prepared by, and the information contained herein (unless otherwise indicated) has been provided by Statnett SF (the "Company"). By viewing this presentation you agree to be bound by the following conditions: This document may only be used internally for business purposes and shall not be used for any unlawful or unauthorized purposes. This document and the information therein are being furnished to you solely for your information and may not be reproduced, redistributed or passed on, in whole or in part, to any other person. This document does not constitute or form part of and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company or any of its subsidiaries in any jurisdiction or an inducement to enter into investment activity. No part of this document, nor the fact of its distribution or reception, should form the basis of, or be relied on in connection with, any contract or commitment or investment decision whatsoever. This document is not a prospectus and does not comply with rules or regulations regarding investor information, and has not been approved by or filed with any stock exchange or regulatory authority.
Amongst others, this document does not disclose risks and other significant issues related to an investment in any securities. This presentation includes and is based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on the current expectations, estimates and projection of the Company or assumptions based on information available to the Company. Such forwardlooking information and statements reflect current views with respect to future events and are subject risks, uncertainties and assumptions. The Company cannot give any assurance as to the correctness of such information and statements.
Investors should only subscribe for any transferable securities on the basis of information in a relevant prospectus and term sheet, and not on the basis of any information provided herein. The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. The Company shall have no liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document.
The information contained in this document is provided as at the date of this document and is subject to change without notice. Because of the possibility of human or mechanical error by the Company, its affiliates or its third party licensors, the Company, its affiliates and its third party licensors do not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. The Company gives no express or implied warranties, including, but not limited to, any warranties of merchantability or fitness for a particular purpose or use.
In no event shall the Company, its affiliates and its third party licensors be liable for any direct, indirect, special or consequential damages in connection with subscriber's or others use of the data/information contained herein. Access to the data or information contained herein is subject to termination in the event any agreement with a third party of information or software is terminated. This presentation is subject to Norwegian law, and any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of Norwegian courts.
Key investments Under implementation
Location
Expected investment in million NOK
Ørskog - Sogndal, new 420 kV power line
Møre og Romsdal/Sogn og Fjordane
4 600 - 5 600
Ofoten - Balsfjord, new 420 kV power line
Nordland/Troms
3 000 - 4 000
Western Corridor, voltage upgrade
Vest-Agder/Rogaland
6 000 - 9 000
Namsos - Trollheim, new 420 kV power line
Trøndelag/Møre og Romsdal
5 400 - 7 700
Balsfjord - Hammerfest, new 420 kV power line
Troms/Finnmark
5 000 - 8 000
Licences pending or appealed
Interconnectors Cable to England
EUR 750 - 1 0001)
Cable to Germany
EUR 750 - 1 000)
Latest commissioned facilities Skagerak 4
Norway/Denmark
Eastern Corridor
Vest-Agder/Telemark
Ytre Oslofjord
Telemark/Østfold
Focused investments
28
1) Statnett's
share
Reconciliation of financial key figures In million NOK Unadjusted figures Revenue EBITDA EBIT Profit after tax Adjustments Accumulated higher revenue* Adjustment for changes in acc. higher/lower revenue Adjusted figures Adjusted revenue EBITDA EBIT Profit after tax
2007 3 415 1 535 1 025 651
2008 4 256 1 722 1 194 1 517
2009 2 862 259 -403 -480
2010 7 247 3 945 3 279 2 198
2011 5 497 2 426 1 628 1 000
2012 5 334 2 260 1 433 837
2013 4 561 1 394 346 82
2014 H1- 2015 5 563 2 874 2 528 1 769 1 378 1 010 829 607
-293 -20
428 -721
-633 1 061
1 554 -2 187
2 617 -1 064
3 455 -838
2 413 1 042
1 790 623
1 494 296
3 395 1 515 1 005 637
3 535 1 001 473 998
3 923 1 320 658 284
5 060 1 758 1 092 623
4 433 1 362 564 234
4 496 1 422 595 234
5 603 2 436 1 388 832
6 186 3 151 2 001 1 284
3 170 2 065 1 306 823
*You will find these figures in note 4 in the annual report Appendix
29
Calculation of allowed regulated revenue
Appendix
30
