Conference call Half-Year Results
A conference call with Walter Bien, CFO and Enno Dykmann, Treasurer, to discuss the 2020 Half-Year Results.
Publication Alliander year results 2020
Frequently Asked Questions
Alliander’s largest shareholders are the provinces of Gelderland, Friesland and Noord-Holland and the municipality of Amsterdam. They represent together some 76%. The other shareholders, with each less than 3% of the shares, are 72 smaller municipalities and the province of Flevoland. The authorized share capital of the company is divided into 350 million shares each having a nominal value of Euro 5. In total 136,794,964 shares had been issued.
The equity of Alliander at 31 December 2019 amounted to EUR 4.2 billion.
Alliander’s financial policy, which is part of its general policy and strategy, is to obtain an adequate return for shareholders and protect the interests of bondholders and other lenders, while maintaining the flexibility to grow and invest in the business.
- The financial framework within which Alliander aims to operate is:
- A ratio of net profit plus depreciation and amortization to net debt of at least 30%
- A ratio of net profit (excluding non-recurring tax effects) plus depreciation and amortization plus net financial income and expenses to net financial income and expenses (interest cover) of at least 3.5
- A ratio of financial debt minus free cash (net debt) to net debt plus equity of maximum 60%
- To maintain a solid A rating profile on stand-alone basis
Our dividend policy:
- To distribute a stable cash dividend over the years
- A pay-out ratio of 45% of net profit after tax, adjusted for exceptional items unless Capex from regulatory obligations or financial criteria require higher retained earnings
- Subject to a minimum solvency ratio of 30%, where solvency is Equity divided by total assets net of capitalization accounts
We strive to maintain a solid A credit rating profile on stand-alone basis. This has a direct impact on the cost of debt and will allow easier access to capital markets.Furthermore, our rating determines the need to issue Letters of Credit relating to cross-border leases.
The following sources of financing are available to Alliander:
- An EUR 600 million committed back-up credit facility with a tenor up to 27 July 2023. This facility has thus far remained unused.
- The EUR 1.5 billion ECP (European Commercial Paper) programme for short-term financing needs (<18 months).
- The EUR 3.0 billion EMTN (Euro Medium Term Notes) programme for medium term financing needs (>18 months)
- EUR 300 million European Investment Bank loan expiring in 2031
- EUR 500 million subordinated perpetual bonds
- Project financing.
Alliander will use these instruments based upon the type and tenor of projects to be financed.
The Authority Consumer and Market (hereafter ACM) is the supervisory authority for the energy market in the Netherlands and is part of the Ministry of Economic Affairs and Climate Policy. The x-factor is the compulsory reduction in permitted turnover for the regulated market of gas and electricity distribution in the Netherlands and is imposed by the ACM. The reduction is compulsory in order to enforce the regulated energy transportation market in the Netherlands to function more efficiently.
As per January 1, 2017, the x-factor for electricity distribution for the period from 2017-2021 is 1.9% for Liander. In addition to these annual reductions in the maximum tariff levels for electricity distribution a one-off increase in maximum tariff levels is applied at the start of the regulation period. This one-off increase amounts to € 48 million for Liander.
As per January 1, 2017 the x-factor for gas distribution for the period from 2017-2021 is 1.4% for Liander. In addition to these annual reductions in the maximum tariff levels for gas distribution a one-off increase in maximum tariff levels is applied at the start of the regulation period. This one-off increase amounts to € 67 million for Liander.