2014 Annual Report

2014 ANNUAL REPORT Romande Energie Group UNITS Currencies CHF Swiss francs EUR euros CONTENTS m million bn billion 1 ANNUAL REPORT 2 Power Message to shareholders 2 kW kilowatt Risk management 6 MW megawatt 1,000 kW Innovation in research and development 6 Average number of employees 6 Energy kWh kilowatt-hour 2 CORPORATE GOVERNANCE 7 MWh megawatt hour 1,000 kWh Group structure and shareholders 8 GWh gigawatt hour 1 million kWh Capital structure 12 TWh terawatt hour 1 billion kWh Board of Directors 13 Management Committee 21 Voltage Shareholders’ participation 25 kV kilovolts 1,000 volts Changes of control and defence measures 26 Auditing body 26 Information policy 27 3 REMUNERATION REPORT 29 Board of Directors 30 Executive Board 31 Other benefits for members of the Board of Directors and the Executive Board 33 4 FINANCIAL REVIEW 35 Romande Energie Group financial overview 36 Key consolidated figures 36 Financial developments 37 Romande Energie Group consolidated financial statements 40 Consolidated income statement 40 Consolidated comprehensive income statement 41 Consolidated balance sheet 42 Consolidated cash flow statement 43 Consolidated statement of changes in shareholders’ equity 44 Notes to the consolidated financial statements 45 Report of the statutory auditor on the consolidated financial statements 82 Romande Energie Holding SA financial statements 84 Income statement 84 Balance sheet 85 Notes to the parent company financial statements 86 Recommended appropriation of retained earnings 89 Report of the statutory auditor on the financial statements 90 CALENDAR CONTACTS This English version is based on the French original. In case of doubt the original French shall prevail. Romande Energie Group 2014 Annual report 1 MESSAGE TO SHAREHOLDERS Guy Mustaki, Chairman of the Board of Directors Pierre-Alain Urech, CEO ANNUAL REPORT Multi-faceted strategy coming to fruition despite uncertainty in energy industry Pierre-Alain Urech, CEO, and Guy Mustaki, Chairman of the Board of Directors Advancing globalisation in the energy sector has forced com- with a variety of business partners. We continue supporting known as CECB® certificates, and consult a veritable wealth of Western Switzerland and acquired a seven-turbine wind farm panies such as Romande Energie to contend with factors that programmes and initiatives fostering innovation. We remain information and tips by visiting declics.romande-energie.ch. in Brittany, France. are no longer merely local or national, but European - or even dedicated to corporate social responsibility and have formulated In addition, we provide online tools to help customers monitor global - in scale. In recent years, drivers of changes have been a human-resources policy that both cares for and brings out energy consumption, compare the efficiency of electronic and Another important development to emphasise is the substan- proliferating and gathering momentum, leading to a paradigm the best in our staff. Operating processes are being constantly household appliances currently on the market and evaluate the tial renovation work undertaken at the hydropower plant in shift in the power industry at a time when framework conditions optimised. energy impact of their own routines and household items. Busi- Farettes (Aigle, in Vaud canton) throughout 2014. This CHF 80m are in a state of flux. nesses are offered a large variety of customised consulting, investment will boost production by 70% while allowing the plant Facilitating energy efficiency through additional training and support services. In late 2014, Romande Energie to blend in better with its surroundings. We will continue to stay the course against this turbulent back- services and guidance also signed a partnership with Agence Cleantech Suisse (act) drop by building on the fundamental facets of our strategy. They Romande Energie Group’s goal over the coming years is to to perform energy audits for high-consumption companies. It is essential to continue investing in hydropower despite include diversifying our energy portfolio, reinforcing service become the reference partner in Western Switzerland for all As part of these audits, all parties jointly determine a set of current market conditions that threaten the profitability of this quality and increasing proprietary power generation. In addi- energy-related issues by simplifying and making the energy energy-saving and carbon-cutting measures that are then energy source. Renovating existing hydropower installations tion, we will continue to maintain a high quality of distribution to transition profitable for our customers. The Energy Services implemented via target agreements with the Confederation. and constructing new ones is fundamental to preserving customers, help implement a smart grid and develop synergies business unit, launched on 1 January 2014, has been working our energy independence and ensuring a steady supply to towards this objective, with positive results thus far in the areas Continuing to invest despite unstable electricity market customers over the long term. of building energy systems, lighting systems, advisory services The ability to guarantee our customers a steady supply of elec- and thermal systems. In particular, we have strengthened our tricity is a major long-term challenge, which is why Romande The main concern today, however, lies not with the invest- position as the leading installer of heat pumps (renovation Energie Group continues to pursue a strategy of fostering pro- ment required to update and construct hydropower plants, but sector) in Vaud canton. Additionally, several municipalities and prietary production despite low electricity prices in Europe and whether Swiss hydropower plants have a viable future in the “Romande Energie Group’s goal companies have entrusted us with the construction of district Switzerland. Power plants running on renewable energies are current market. As it stands, the production cost of one kilo- over the coming years is to become heating systems. This business unit will continue intensify- given top priority, and each project undergoes a detailed risk watt-hour at a Swiss plant is up to twice as much as its current ing and diversifying its operations this year, for example by analysis that takes into account the profitability margin set by selling price on the electricity market. the reference partner in Western marketing photovoltaic solutions to residential customers in the Board of Directors. Switzerland for all energy-related addition to the current line of solar thermal installations and Hydropower is also the only energy source in Switzerland heat-pump water heaters. An investment portfolio of almost one billion Swiss francs un- subject to heavy taxation without benefiting from any subsidies issues by simplifying and making the derpins numerous production projects in Switzerland as well as or favourable framework conditions. It is therefore urgently energy transition profitable for our However, we offer our customers more than simply technical acquisitions in France and Germany. Last year, we inaugurated necessary to determine which steps must be taken to ensure solutions to walk them through the energy transition. Residential and began operations at the Agrogaz wet biomass power plant the survival of this renewable, native source of energy pro- customers.” customers can request cantonal building-energy assessments, in Lignerolle (Vaud canton), installed ten large solar parks in duction - a true pillar of the Swiss power-generation industry. 2 Romande Energie Group 2014 Annual report Romande Energie Group 2014 Annual report 3 Anticipating grid changes surrounding the implementation of the Confederation’s Energy Dividend in respect of 2014 A growing number of municipalities, businesses and residential “Our Group’s ability to embody key Strategy 2050. Investors’ caution regarding the energy indus- The dividend policy at Romande Energie is characterised by a customers are beginning to produce their own electricity. The values - openness, innovation and try is understandable, as several large groups - mainly power stable payout ratio, resulting in a dividend rising over the long increase in decentralised production facilities has had a no- generators - saw their profits decrease in 2014. However, their term. The highly satisfactory operating profit has prompted the ticeable impact on the power grid, which must be reconfigured responsibility - through our projects, reasons for shying away from companies such as Romande Board of Directors to propose an ordinary dividend of CHF 30.00 to handle multi-directional flows while integrating new, smart actions and relationships with Energie are less discernible, as our business focuses on energy to the Annual General Meeting. If this amount is approved by features. distribution and our procurement terms are advantageous. shareholders at the Annual General Meeting, the total dividend customers and other stakeholders is payout will be CHF 30.8m, based on the total number of shares We have laid a solid foundation for anticipating and coping with truly a great advantage.” in circulation. changes in power distribution. Our efforts include participating in the Swiss Smart Grid Association and expanding our fibre-optics ANNUAL REPORT networks. In addition, we are part of the Datahub initiative, the goal of which to create a platform for monitoring power flows between the different agents in the power industry. Another noteworthy commitment is our annual investment of These same principles

Load more