The present document was prepared by Séchilienne-Sidecfor the purposes of a presentation on 16 March 2010.

Transcription

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2 Disclaimer The present document was prepared by Séchilienne-Sidecfor the purposes of a presentation on 16 March The information contained in the present document has not been checked independently. The document contains only summarised information and is not intended to be exhaustive. The present document contains projections and descriptions of Séchilienne-Sidec sfuture strategy, objectives and prospects. These projections and descriptions may be affected by known or unknown risks, uncertainty and other random factors that could ensure that Séchilienne-Sidec sfuture results, performance and achievements are significantly different from what is envisaged or suggested in the present document. Séchilienne-Sidecmakes no commitment and extends no guarantee that it will fulfil or meet its future strategy, objectives and prospects. Unless the law states otherwise, Séchilienne-Sidecmakes no commitment to update or revise the projections and descriptions contained in the present document. The present document does not constitute in any way a solicitation to sell, buy or subscribe to Séchilienne- Sidec shares. 2

3 Overview 1. Introduction 2. Activity 3. Financial statements 4. Conclusion and outlook

4 1 -Introduction Nordine Hachemi Chairman & Chief Executive Officer

5 Introduction Culture A profound transformation of the company to prepare for the growth challenges ahead Performance Resilient EBITDA and net profit despite disruption to production related to technical incidents and social unrest Risk control Control over commitments, implementation of rigorous project management, contract negociations(contracts with main suppliers, CO2 riders, the Octroi de Mer tax, etc.), QHSE Development Vigorous business development: new operating authorisations for two bagasse-fired power stations, continuing work at CaraïbesEnergie, ownership of 27% of PV installations onstreamand generating more than 250 KW on 31 December 2009 in France 5

6 2- Activity Christian Jacqui Deputy Chief Executive Officer

7 High availability rate in spite of incidents Installed capacity % ownership 2008 Availability rate 2009 Indian Ocean in number of days Bois Rouge 1 (CTBR1) Bois Rouge 2 (CTBR2) % 91.5% 88.5% 74.8% 97.3% GolA (CTGA) GOL B (CTGB) % 95.6% 94.2% 95.4% 89.2% Belle Vue(CTBV) 70 27% 91.2% 93.1% 340 Sud(CTDS) 35 25% 88.6% 91.8% 335 Savannah (CTSAV) 90 25% 94.4% 90.9% 332 Caribbean Moule(CTM) % 92.6% 67.8% 248 Galion (CCG) 40 80% 85.0% 86.7% 316 7

8 Unprogrammedproduction stoppages in 2009: technical incidents and social unrest Technical incidents Maintenance operations scheduled for 2008 but delayed until 2009 CTG B: 21 days Industrial accidents CTBR 1: 51 days following the rupture of an alternator component CCG: 17 days to change a prematurely used combustor Operating incidents CTBR 1: 28 days following a fire in an electrical control room CTM: 26 days following piercing of furnace pipes Social unrest 91 days lost in Guadeloupe, of which 56 during the Force Majeureunrest 8

9 Our response in a context of continual improvement A new and more stringent maintenance programme with a strict timetable: an additional million over three years The technical reliability of our plants Intensification of operating procedures The formalisation of experience-sharing between plants The launch of QHSE approach for plants The creation of a regulation-watch capacity at Group level to anticipate changes in the rules (emission standards, etc.) Social relations within the Group The extension of headquarter employee representation principles to all plants management In 2010, all Group employees will have a stake in economic performance (recurrent impact of 2 million per year, assuming normal operations) Creation of an Economic & Social Union (ESU) in Reunion and Guadeloupe plus a Group committee representing the two ESU and the holding company. It will take months for all these measures to make a durable impact 9

10 CO2 quotas: addition of contract riders limiting the annual financial impact in the future Context Regulatory changes after Kyoto Reductions in greenhouse gas quotas (CO2) allocated to electricity producers Highly volatile costs of CO2 per tonne For the Group Signature of riders in July 2009 Controlled / limited risk to existing electricity supply contracts for three operating biomass/coal plants in Reunion and Guadeloupe EDF billed for additional costs arising from the reduction in quotas Annual financial impact limited to 2 million on existing plants 2009 impact: 1 million for CO2 emissions of 1.9 million tonnes* 2010: quota allocation unchanged from 2009 * Average CO2 value in 2009: about 13.50/tonne 10

11 Bagasse: efficient and useful Why using Bagasse as Fuel? A couple of figures Sugar cane is an excellent transformer of solar energy (yield 140 t/h) Local and renewable production Neutral from a greenhouse gas viewpoint Nosulphurin bagasse Reduced pollution (dust, SO2 etc.) In 2009, the Company burned 1.3 million tonnes of bagassein its plants, or about 4.3 million tonnes of crushed sugar cane (o/w2.4 million tonnes in France) This fuel generated 547,425 MWh, or about 20% of total Group production (including Mauritius) and saved 715,000 tonnes of CO2 The only basic power stations using renewable energy in France 11

12 Thermal medium-term prospects authorised Caraïbes Energie (Guadeloupe) MW 567 MW 529 MW End-2009* Horizon 2012* 93 MW in operational authorisation already obtained: CCG2 (Martinique) Marie-Galante Energie (Guadeloupe) St André Energie(Reunion) Beyond 2012 * Onstream MW capacity 12

13 CaraïbesEnergie: onstream objective end-2010 Coal-fired power station in Guadeloupe Capacity: 38 MWgross Closing of construction financing in July 2009 An investment of 130 million Electricity supply contract with EDF already signed Project update Civil engineering: 75% complete Start of furnace construction: October 2009 Start of turbine installation: February 2010 Start on electricity system: March 2010 First burn in furnace: October 2010 Grid attachment objective : end-2010 for first generator 13

14 CCG2: onstream objective 2014 Bagasse-/coal-fired power station in Martinique Capacity: 38 MWgross Project details Investment: around 150 million Operational authorisation obtained Ownership: 80% CCG2 : Bagasse-Charbon CCG1 + CCG2 : Poste HTB Administrative update Administrative authorisation file submitted at the beginning of March 2010 Project finance Grid attachment objective: 2014 CCG1 : TAC(FOD) 14

15 Marie-Galante Energie and Saint-André Energie Bagasse-/coal-fired power station in Guadeloupe Capacity: about 15 MW gross Project details Aimed at ensuring a future for the island s sugar cane industry via electricity production Operational authorisation obtained in March % owned Administrative update Additional studies being carried out on finalising Capex and subsidies Grid attachment objective: Bagasse-/coal-fired power station in Reunion Capacity: 40 MW gross Project details Included in the PPI (the multi-year electricity production investment plan for ) Operational authorisation obtained in January % owned Administrative update Administrative authorisation request to be filed in Q

16 Developing the photovoltaic segment Total installed capacity on 31/12/2009 (MW) Diverse projects with two types of installation Rooftop: shorter administrative timeframes, small-scale projects Open country: long pipeline, large-scale projects Swift geographical deployment Launch of photovoltaic capacity at end-2006, in Reunion Subsequent spread to: all of France s overseas departments, including Mayotte and Guiana Southern Europe: Italy and Spain metropolitan France Reunion & Mayotte , ,3 Construction complete, awaiting grid attachment Spain , Caribbean 29, Dec Dec Dec Dec

17 Photovoltaic segment: market update to 31 December MW onstreamon 31 December 2009, from > 42,000 sites Total MW: 269 Installations > 250 KW: 46 MW SIDEC: 12.2 MW 223 MW 46 MW Other: 33.8 MW Installations < 250 KW Installations > 250 KW Segment market share: 27% Source: ERDF 17

18 Solar power: an unstable tariff structure Tariff proposal March 2010 Base metrop. France / MWh Base overseas departments / MWh Building premium / MWh Tariff order 10 July metrop. France 150 overseas depts Tariff proposal July / 470 / 450 Tariff proposal December / 470 / 450 Tariff order 12 January / 500 / 420 Tariff proposal Transition Destined to cover supply contract requests filed between 1 November 2009 and 1 December 2010 To come Plans to reduce tariffs Other provisions Introduction of departmental coefficients The indexation formula has been adjustedsharply: 20% inflation instead of 60% inflation Reductions in purchase obligation thresholds as a function of capacity (France s overseas departments) 18

19 Solar power: an unstable regulatory environment Regulations concerning opencountry installations New regulations in the Decree of 19 November 2009 Building permit, impact study, public enquiry Ministerial Circular of 18 December 2009 Protection of agricultural land, forests, natural environments and landscapes URBAN CODE ENVIRONMENT CODE Revision to land use documentation Public enquiry on revision to land use docs Building permit Impact study Public enquiry on building permit Old regulations New regulations Delay in the development phase 19

20 An authorised 123 MW in photovoltaic capacity at end-2009 Installed capacity and capacity under construction: 38.6 MW 19 MW in operation (rooftop and open country), of which 11 MW attached to grid in MW awaiting grid attachment 8.7 MW under construction, of which 1 MW in open country in Italy, 7 MW in open country in metropolitan France and 0.7 MW on rooftops in overseas departments Le Môle (Martinique) Under development: 84.4 MW 71.2 MW in building permits, requested and obtained (open country) Objective: MW installed or under construction at end

21 Wind power: selective development in MW A selective development strategy Portfolio under development: 107 MW 70 Permits obtained for 25 MW 16 MW in clean (no-recourse) building permits for the Éoliennesde la Porte de France site at Forbach 9 MW of building permits obtained are subject to legal challenge 12 1 other project in France, for 12 MW 42,5 25 Permits obtained Permits requested Potential projects Objective MW installed or under construction by 2012 Installed capacity on 31 December

22 Our Strengths Thermal Considerable expertise to be spread throughout the Group to increase the reliability of existing plants via more provision for maintenance to develop Photovoltaic& wind power Substantial installed capacity whose growth, though dependent on a more stable environment, is based on a solid portfolio of good projects Vast experience in all stages of project development A modern and appropriate HR policy 22

23 3-Financial statements Eléonore Joder Chief Financial Officer

24 Consolidated income statement (millions of euros) Revenues EBITDA EBITDA/revenues EBIT EBIT/revenues Net financial expense Share of profits from associates Taxes Effective tax rate Net profit NP/revenues Net profit (Group share) NPGS/revenues % % (17.7) 2.5 (13.6) 22.7% % % 2008 Chg 09/08* Comments % % (19.6) 4.1 (9.7) 12.6% % % -20% -17% -19% -10% -39% +40% -31% -33% Major impact of lower coal prices, technical incidents and social unrest Effect of lower interest rates Return to a normal tax rate in 2009 * rounded to the nearest percentage point 24

25 Coal prices ( /ton) 140 /t /t 115/t 100 /t 80 /t 77/t 60 /t Capacity-weighted average 25

26 Cashflow statement (millions of euros) Comments Cash flow from operations Change in working capital requirements Tax paid Net cash flow from operations (1.7) (11.8) Impact of lower EBITDA more than offset by marked improvement in WCR and reduced tax payments Net cash flow on investments (75.6) (119.7) Decline in investment linked to more stringent commitments policy Dividends New debt and loans Repayment of debt and loans Cost of debt Others Net cash flow from financing (23.0) (83.3) (19.1) 1.7 (15.4) (35.9) (107.3) (22.1) Impact of cash/shares dividend payout option and repayment of corporate debt Net change in cash balance Opening cash balance Strong improvement in closing cash balance Closing cash balance

27 Simplified Balance sheet (millions of euros) ASSETS LIABILITIES Fixed assets Shareholders equity Other non-current assets ,8 Financial Debt 562.8** Current assets Of whichnet cash , Non-current & Current liabilities Total consolidated assets 1, Total consolidated liabilities 1, * Net of current bank overdrafts ** Of which 87% project debt and 13% corporate debt 27

28 Changes in revenues millions of euros (13.5) TH + Wind volume effect 18.4 Sale of solar panels and PV capacity (36.1) Coal price effect (15.7) Impact of unprogrammed production stoppages (12.9) Sale of panels and PV capacity TH + Wind volume effect 7.4 Other (2.6) Sale of Roussillon Coal price effect

29 Change in EBITDA by segment (millions of euros) Chg. Comment Operations Thermal Impact of lower coal prices, technical incidents and social unrest Photovoltaic Wind Volume effect from new capacity attached to grid Holding (3.2) (1.1) -2.1 Structural improvements Operations subtotal Other Changes in tax exemptions and sales of PV panels and capacity to third parties Total

30 Changes in EBITDA millions of euros Positive coal price effect Unprogrammed production stoppages and other exceptionals (10.2) 1.1 Tax relief Margin on PV panels and capacity sold to third parties 96,0 121, (4.8) Negative coal price effect Tax relief 2009 Margin on PV panels and capacity sold to third parties published restated published 30

31 Debt structure Gross debt: million, o/w 87% project debt Corporate debt 73.5 million Project debt (leases + loans) million Net cash: 99.7 million* Net debt: million at end-december 2009 Shareholders equity: million at end-december 2009 FYI Debt relating to projects in progress estimated at around 130m * Net of current bank overdrafts 31

32 High level of financing in 2009 in spite of difficult environment Project finance 86 million for Caraïbes Energie 193 million in new financing signed in million for PV projects Corporate finance A new 15 million credit line 32

33 Financial results in preparation for the future Operations Cash Good general performance in a difficult environment Margins maintained at a high level Cash generation greater than investment Strong gain in closing cash balance Financial structure Significant drop in WCR Net debt corrected for debt relating to projects in progress back in line with equity capital 33

34 4- Conclusion and prospects Nordine Hachemi Chairman & Chief Executive Officer

35 Meeting our contractual commitments in complex environments Operatorof thermal power stations spread over 16,000 km Complexand demandingoperating environment Highlyreactiveteams withstrong technical expertise Guadeloupe Martinique French Guiana > 7,000 km > 9,000 km France Italy Spain Mayotte Mauritius Reunion Basic electricity producer subject to tight availability constraints One of the highestavailabilityrates in the sector Demanding and prestigious customers with high expectations Highly disciplined operation 35

36 Recurrent and highly predictable cash flows year contracts with the national operator High probability of contract extension, with a high terminal asset value Guaranteed prices that integrate regulatory risks and variations in raw material costs No volume risk: all MW produced are bought Thermal Solar and wind Contracts for years in the solar segment and 15 years in the wind segment Regulated tariffs Low and stable operating costs 36

37 High-level, specialist expertise Development Construction Operation Capacity to create value at each of a project s key stages Project origination and technical choices Design and finalisation of investment programme Finance 35 thermal plants in over 30 years 4 wind farms and 58 solar installations since ,864 GWh generated in MW installed by end Extensive expertise in project identification and operation A solid, established set of skills to maximise value creation over the project s life 37

38 Development choices that reflect value creation potential Thermal Photovoltaic Wind Development Construction < < < Operation Barriers to entry Séchilienne-Sidec s strategic positioningc The Group s industrial expertise maximises the creation of value for all contributors A leading partner for our clients An extremely large potential market that justifies a highly selective approach Outstanding industrial expertise and project management Development conditioned by financing capacity and regulatory changes Technical know-how key to future synergies within the Group An opportunistic approach Concentration on development and operation of the most profitable projects Potential asset rotation 38

39 The business model we intend to develop Best-in class development skills Highly protective contractual framework + + Operational excellence Accumulated experience, project management, selective investment More attractive than conventional concession-based propositions Very high capacity utilisation rates in historical terms = Secured cash flows offering access to attractive financing terms Projects financed with non-recourse debt (apart from construction phase) Bank financing for at least 80% of total investment Optimised equity requirements Mostly fixed interest rates (contractually or via hedging) Very high returns on equity 39

40 Evolving from a portfolio management company to a matrix-based Group NordineHachemi,Chairman & CEO (Ex Groupe Saur, groupe Bouygues) Top management Christian Jacqui, deputy CEO (Ex Groupe Saur, Areva, Groupe Bouygues) Operating divisions Operating divisions Support Support functions Projects Projects Pascal Langeron 15 years Indian Ocean Indian Ocean Louis Decrop 19 years Christian Blanchard 13 years Caribbean Caribbean Frederic Moyne 11 years Eleonore Joder, CFO (Ex Poweo, Artemis) Administration Administration & Finance Finance J-P Lagarde, Tech. Director 11 années Technical support Technical support Laurent Bastian, Financial control Cyril Perroy Legal Director Métro. France Métro. France S. Europe S. Europe J-L Bernard, HR Director Human Resources Human Resources The creation of four operating divisions for each major geographical area Introduction of Projects Team to identify and manage new opportunities Transversal support functions for the operating divisions and the Projects team Within the Group, in the last 20 months Sechilienne-Sidec Seniority 40

41 Medium-term prospects Wind PV Thermal / 2S majority owner Thermal / 2S minority owner 601 MW % MW % MW Development as a function of regulatory and tariff environment Development capitalising on project expertise and operational excellence 93 MW in operating authorisations already obtained CCG2 (38MW) under construction in 2012, onstream estimate 2013/14 Installed capacity low* * Installed capacity, estimates 2012 high* Beyond

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