Half-year Results 2005 ENECO Holding N.V.

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• Half-year Results 2005 ENECO Holding N.V.
• General Meeting of Shareholders
• Noordwijk, 16 September 2005

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ENECO Energie Half-year Results 2005

• Jeppe Machielsen, Chief Financial Officer

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Topics

• Headlines
• Profit and loss account
• Balance sheet
• Cash flow
• Credit rating
• Prospects

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Headlines

• Results satisfactorily!
• Net result 1st half year 168 million (2004
  146 million)
• Working capital 370 million (2004 390
  million)
• Net churn of 1.7
• Lowering of SP credit rating from A to A

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Profit and loss account
Increase in result fed by energy margin
2005 30 June
2004 30 June
Profit and loss account ( mln.)
? ()
Energy revenues Gross margin energy as of
revenues Operating result as of
revenues Interest expenses Result before
taxation Tax Net result
1,792 538 30 271 15 -27 244 -76 168
1,742 513 29 239 14 -35 204 -58 146
4.9 13.4 19.6 15.1
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Development of sales volumes
Lower volumes, higher revenues
2005 30 June
2004 30 June
Volumes sold
? ()
Electricity (TWh) Gas (billion m?) Heat (Tj x
1000)
10.2 3.2 6.4
11.0 3.7 6.6
-7 -13 -3
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Energy revenues
High price of oil leads to increase in revenues
1,792
1,742
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Gross margin energy
Electricity and heat dictate margin increase
538
513
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Operating expenses
PPA depreciation increases costs
2005 30 June
2004 30 June
Operating expenses ( mln.)
? ()
Personnel costs Other operating
expenses Depreciation/amortisation Total
145 215 104 464
145 202 96 443
0 6.4 8.3 4.7
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Operating income
Higher operating revenues create higher costs
2005 30 June
2004 30 June
Operating income ( mln.)
? ()
Gross margin energy Other operating
revenues Operating expenses Total
538 197 -464 271
513 169 -443 239
4.9 16.6 4.7 13.4
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Operating income (regulated vs deregulated)
Regulated stable deregulated growing
(x 1 million euro) June-05     June-04    
  Energy Deregulated Energy Regulated Total  Energy Deregulated Energy Regulated  
             
Revenues 1,485 492 1,977 1,381 526 1,907
Operating income 96 200 296 48 214 262
Other     -25     -23
             
Total operating result Total operating result   271     239
Includes balance of other external revenues   Includes balance of other external revenues   Includes balance of other external revenues          
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Balance sheet
IFRS means balance sheet extension
(x 1 mln. euro) ASSETS 30 June 2005 31 Dec 2004 30 June 2004
Fixed assets 4.139 3.839 3.829
Stocks 20 22 28
Receivables 1.273 817 1.049
Cash and cash equivalents 20 34 23
TOTAL ASSETS 5.452 4.712 4.929
LIABILITIES
Group Equity 2.525 2.423 2.327
Provisions 284 272 296
Long-term financial obligations 129 - -
Interest-bearing liabilities 1.591 1.257 1.619
Net interest-bearing liabilities 923 760 687
TOTAL LIABILITIES 5.452 4.712 4.929
       
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IFRS impact
Trade position causes greatest movements
IFRS effects from 01-01-2005 (not applied retrospectively)   (x 1 mln. euro) Balance incl. IFRS IFRS impact Balance before IFRS 31-12-2004
Intangible fixed assets 159 53 106 114
Financial fixed assets 651 138 513 358
Receivables 1.273 305 968 817
Group equity 2.525 36 2.489 2.423
Provisions 284 25 259 272
Long-term financial obligations 129 129 0 0
Current liabilities 923 294 629 760
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Investments

• Investments in tangible fixed assets in first
  half of 2005 94 million ( 56 million in
  networks and suchlike)
• Purchasing obligation (PPA) for purchase of
  electricity from Rijnmond Energie C.V. for 150
  million (financial fixed asset)
• Deconsolidation of Gevudo ( -51 million)
• Inclusion of 180 million as result of IFRS
  application related to the processing of the
  long-term part of the trade position and the CO2
  entitlements

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Working capital
Substantial drop in invoicing backlog
Working capital 2004-2005 12 months average
650
550
450
350
x mln.
250
150
50
Jan
Feb
Mch
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Mch
Apr
May
June
Working capital
12 months average
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Cash flow
1 January to
1 January to
(x mln.)
30 June 2005
30 June 2004
Net result
168
146


Depreciation/amortisation
104
96


Movements in provisions
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-21


Cash flow from results
284
221


Investments in fixed assets
-215
-81


Increase of receivables and stocks
-196
-132


-81
-64
Decrease in current liabilities


Cash flow from operating activities
-492
-277


0
Movements in financial transactions
-75
-65


Movements in shareholders equity (IFRSdividend)
-74
Increase in net debt position
-348
-130


Increased liability PPA, dividend and season
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Interest-bearing liabilities
Half of available credit facilities in use
Interest-bearing liabilities
x 1 billion
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Ratios
Strong results, strong ratio development
2005 June
2004
2004 June
Ratios (in )
Solvancy Interest cover Operating result as
of energy revenue Operating result as of
capital employed
46.3 9.9 15.1 12.0
46.3 5.5 12.510.2
47.2 6.8 13.7 11.4
Half-year figures are extrapolated
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Credit Rating
PPA causes rating adjustment

• SP approach to PPA
• Despite an increase in own capacity via PPA, the
  result can still be influenced by volatile
  energy prices
• PPA capitalised on balance sheet
• Negative impact on balance sheet ratios
• Impact on ENECO rating
• Rating adjusted from A/Credit Watch to
  A/Negative
• Modest increase in financing costs
• Provision of additional LCs for different CBL

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Prospects

• 2005 will be better than 2004!
• Development of result for whole of 2005
• All the units are contributing to the improvement
• Ambitions
• Several uncertainties

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