Half Year 2026 Romande Energie Holding SA Earnings Call

September 3, 2026

Speaker #1: Good morning, ladies and gentlemen, and welcome to our meeting, in which we will present the half-yearly results of the Romande Energie Group. Our presentation today will be held online, and I would already like to thank Mr. Whiteley for providing the English interpretation for our English-speaking participants.

François Fellay: Good morning, ladies and gentlemen, and welcome to our meeting. We will present the H1 results of the Romande Energie Group. Our presentation today will be held online. I would really like to thank Mr. Whiteley for providing the English interpretation for our English-speaking participants. My name is François Fellay. I am the Chief Executive Officer of the Romande Energie Group. I am accompanied by Nicolas Conne, the Chief Financial Officer of the group. You can ask your questions in French or English directly by email to the address indicated below, investisseurs@romande-energie.ch. We will be pleased to answer your questions at the end of our intervention. As a preamble, I would like to present to you our key figures for this H1 2026. I am delighted to present an excellent H1 2026, which confirms a clear-cut improvement in our profitability.

Speaker #1: My name is François Fuller. I am the Chief Executive Officer of the Romande Energie Group, and I'm accompanied by Nicolas Kohn, the Chief Financial Officer of the group.

Speaker #1: You can ask your questions in French or English directly by email to the address indicated below: investisseurs@romandeenergie.ch. We will be pleased to answer your questions at the end of our intervention.

Speaker #1: As a preamble, I would like to present to you our key figures for the first half of 2026. I'm delighted to report an excellent first half-year, which confirms a clear-cut improvement in our profitability: EBITDA reached 98 million Swiss francs, up by 27 million Swiss francs, and EBIT doubled to 46 million Swiss francs.

François Fellay: EBITDA reached CHF 98 million, up by CHF 27 million. EBIT doubled to CHF 46 million. This increase was driven mainly by the markets and energy activities, thanks to a favorable trend in the electrical energy margin. The net income was CHF 47 million, up by CHF 7 million, with a contribution from Alpiq of CHF 11 million. Furthermore, we distributed CHF 37 million in dividends to shareholders. Operationally, production volumes are on an upward trend. Production was supported in particular by the partial takeover of the Forces Motrices du Grand-Saint-Bernard power plant. In summary, the half year combines a strong financial progression and positive operational momentum. My colleague, CFO Nicolas Conne, will be giving you further details about these results in a few minutes. Concretely, at Romande Energie, what has happened since our last meeting this last spring?

Speaker #1: This increase was driven mainly by the markets and energy activities, thanks to a favorable trend in the electrical energy margin. Net income was 47 million Swiss francs, up by 7 million Swiss francs, with a contribution from Alpec of 11 million Swiss francs.

Speaker #1: Furthermore, we distributed 37 million Swiss francs in dividends to shareholders, operationally production volumes are up, on an upward trend, production reached, production was supported by a particular, in particular by the partial takeover of the Force Motrice du Grand Saint-Bernard power plant.

Speaker #1: In summary, the half-year combines strong financial progression and positive operational momentum. My colleague, CFO Nicolas Kohn, will be giving you further details about these results in a few minutes.

Speaker #1: Concretely, at Romande Energie, what has happened since our last meeting this past spring? We have made considerable investments and continued developments according to our plan.

François Fellay: We have made considerable investments and continued developments according to our plan. We invested CHF 40 million in the electrical grid to strengthen it in order to be able to handle new renewable energies. In the field of wind power, we have acquired a wind farm in France. We have also embarked on the construction of a wind farm, which started in the last few days. This is in the context of eight wind turbines generating 42 TWh. This wind farm is really part of our strategy of developing our global portfolio of production under management, which we presented to you last year in our strategy. This eventually will amount to 5 TWh of energy generated. In addition, no later than 1 September, we embarked on the construction of the Les Mouilles wind farm in France for 10 MW.

Speaker #1: We've invested 40 million in the electrical grid to strengthen it, in order to be able to handle new renewable energies. In the field of wind power, we have acquired a wind farm in France, and we have also embarked on the construction of a wind farm, which started in the last few days.

Speaker #1: And this is in the context of eight wind turbines, generating 42 gigawatt-hours. This wind farm is really part of our strategy of developing our global portfolio of production under management, which we presented to you last year in our strategy. Eventually, this will amount to five terawatt-hours of energy generated.

Speaker #1: And in addition, no later than the 1st of September, we embarked on the construction of the Les Mouilles wind farm in France, for 10 megawatts.

Speaker #1: In the field of agrivoltaics, we're soon going to be inaugurating the first park in the canton of Vaud, the largest in Switzerland.

François Fellay: In the area of agrivoltaics, we are soon going to be inaugurating the first park in the Canton of Vaud, the largest in Switzerland. In terms of volume, the volume is not extraordinary, but this genuinely represents the diversification of this technology applied to agriculture. After the summer we have just had, one can easily understand the importance this will have in the conjunction between energy and development and climate warming, global warming. As far as hydroelectric generation is concerned, new plants are very rare. We have received the green light for a new run-of-river hydropower plant in Valais. In the field of heating, district heating, more specifically, we have been able to acquire a majority shareholding in the district heating company in the town of Gland in Vaud, which is an important signal, which shows that we are continuing development in this regard of the group.

Speaker #1: In terms of volume, the volume is not extraordinary, but this genuinely represents the diversification of this technology applied to agriculture, and after the summer we've just had, one can easily understand the importance this will have in the conjunction between energy and development and climate warming.

Speaker #1: Global warming: as far as hydroelectric generation is concerned, new plants are very rare. We have received the green light for a new run-of-river hydropower plant in Valais.

Speaker #1: In the field of heating—district heating, more specifically—we have been able to acquire a majority shareholding in the district heating company in the city of, in the town of Gland, in Vaud.

Speaker #1: This is an important signal that shows we are continuing development in this area as a group. As regards venture capital, we have just made our first acquisition of a foreign startup: Hyperion, a Finnish startup which we acquired last spring.

François Fellay: As regards venture capital, we have just made our first acquisition of a foreign startup, Hyperion, a Finnish startup, which we acquired last spring. Then there is another in-house project, but which is a big project, and it was completed in record time and very rigorously in order to reduce our technological debt. We completed the SAP migration in record time. The world of energy is constantly changing. It's in perpetual motion. I repeat this year after year, and it depends very heavily on external factors, geopolitical factors, and also climate factors. It's important for our group to develop and increase its robustness to cope with these factors in order to transform them into challenges and opportunities. Moving on now to the geopolitical and European context.

Speaker #1: And then there is another in-house project, which is a big project, and it was completed in record time and very rigorously. In order to reduce our technological debt, we completed the SAP migration in record time.

Speaker #1: The world of energy is constantly changing; it's in perpetual motion. I repeat this year after year, and it depends very heavily on external factors, geopolitical factors, and also climate factors.

Speaker #1: And it's important for our group to develop and increase its robustness to cope with these factors, in order to transform them into challenges and opportunities.

Speaker #1: Moving on now to the geopolitical and European context. In the context of the conflict in the Middle East, the stakes in terms of electricity supply are enormous.

François Fellay: In the context of the conflict in the Middle East, the stakes in terms of electricity supply are enormous, particularly in view of the fact that a considerable portion of electricity generated in Europe is generated by gas. Of course, the conflict in the Strait of Hormuz has generated and is generating a significant increase in the price of hydrocarbons and gas in particular. However, as regards our basic supply, we have been able to secure our purchases sufficiently ahead of time, so as not to suffer from the inflation caused by the conflict, and we have even been able to announce a decrease in tariffs a few days ago. As regards the framework agreements with the European Union, we support the necessary integration of Switzerland into the European electricity market.

Speaker #1: Particularly in view of the fact that a considerable portion of electricity generated in Europe is produced by gas, and of course, the conflict in the Strait of Hormuz has generated, and is generating, a significant increase in the price of hydrocarbons, and gas in particular.

Speaker #1: However, as regards our basic supply, we have been able to secure our purchases sufficiently ahead of time so as not to suffer from the inflation caused by the conflict, and we have even been able to announce a decrease in tariffs a few days ago.

Speaker #1: With regard to the framework agreements with the European Union, we support the necessary integration of Switzerland into the European electricity market. Cross-border trade is very important for Switzerland as an electricity generation center.

François Fellay: Cross-border trade is very important for Switzerland as an electricity generation center, but also in terms of technical collaboration between grids. We are at the center of this European electricity grid trading system. We should not suffer from the cross-border trading of electricity. We should benefit from them. As time has gone by, we have increasingly been excluded from them. This has an impact on production security. It is important to achieve an agreement with the European Union, and we support this in order to support the electrical energy supply, in particular in winter in Switzerland. As regards climate stability, the effects of which we have seen this summer, for us, the stakes of the investments we've announced to you in the area of cooling have gained in importance, and it's obviously important to tackle the causes of global warming.

Speaker #1: But also, in terms of technical collaboration between grids, we are at the center of this European electricity grid trading system. We should not suffer from the cross-border trading of electricity; we should benefit from it.

Speaker #1: As time has gone by, we have increasingly been excluded from them. This has an impact on production security; it is important to achieve an agreement with the European Union, and we support this in order to secure the electricity supply, particularly in winter, in Switzerland.

Speaker #1: As regards climate stability, the effects of which we have seen this summer, for us, the stakes of the investments we've announced to you in the area of cooling have gained importance, and it's obviously important to tackle the causes of global warming.

Speaker #1: Our mission is to decarbonize French-speaking Switzerland and to make French-speaking Switzerland the first decarbonized region of Switzerland. Our aim is to produce cooling during these heatwave periods, and at the same time to decarbonize and to centralize operations in terms of our infrastructure.

François Fellay: Our mission is to decarbonize French-speaking Switzerland and to make French-speaking Switzerland the first decarbonized region of Switzerland. Our aim is to produce cooling during these heatwave periods and at the same time to decarbonize and to centralize operations in terms of our infrastructure. There's been quite a debate recently in Switzerland on cooling and the right to cooling. Everyone should be able to heat their dwellings. No one disputes that because one can die of cold. As regards the heatwave, we might one day find ourselves in a situation in which we can die of being too hot. So one cannot deny the importance of cooling. Our responsibility in terms of energy infrastructure is to ensure that cooling can be provided without making the causes of global warming worse. That is why we are decarbonizing.

Speaker #1: There has been quite a debate recently in Switzerland about cooling and the right to cooling. Everyone agrees that people should be able to heat their dwellings—no one disputes that, because one can die from cold.

Speaker #1: And as regards the heatwave, we might one day find ourselves in a situation in which we can die from being too hot. So, one cannot deny the importance of cooling. Our responsibility in terms of energy infrastructure is to ensure that cooling can be provided without making the causes of global warming worse.

Speaker #1: And that is why we are decarbonizing in 2025. We have already positioned ourselves with important investments by producing two gigawatt-hours of cooling. As regards the energy strategy in general, the Energy Strategy 2050 of the Swiss Confederation is continuing its roadmap.

François Fellay: In 2025, we have already positioned ourselves with important investments by producing 2 gigawatt hours of cooling. As regards the Energy Strategy in general, the Energy Strategy 2050 of the Swiss Confederation is continuing its roadmap. The sun has enabled us to provide a lot of energy. Now, the obstacles and the blockages in terms of wind power are considerable. When talking about renewable energy, excluding hydropower, we are of course concentrating on solar power. In periods of drought, as was the case this summer, solar power has been able to make up for a considerable part of the energy which could not be produced by hydroelectric power. As regards CO2, our Minister of Energy recently confirmed that the CO2 reduction targets will not be achieved by 2030.

Speaker #1: The sun has enabled us to provide a lot of energy. Now, the obstacles and the blockages in terms of wind power are considerable.

Speaker #1: Now, when talking about renewable energy, excluding hydropower, we are of course concentrating on solar power. Now, in periods of drought, as was the case this summer, solar power has been able to make up for a considerable part of the energy which could not be produced by hydroelectric power.

Speaker #1: As regards CO2, our minister of energy recently confirmed that the CO2 reduction targets will not be achieved by 2030. The electricity grid infrastructure, both in terms of transmission and distribution, in terms of both Swiss grid and the DSOs, will require a very considerable investments.

François Fellay: The electricity grid infrastructure, both in terms of transmission and distribution, in terms of both Swissgrid and the DSOs, will require very considerable investments. We are talking about billions over the next 20 years in order to absorb the amount of decentralized energy produced, in particular by solar panels. Finally, the question of winter supply remains crucial. This is where the energy mix really becomes important, and we have to be able to rely on wind farms because there is more wind in winter, both night and day, and this energy form could replace solar power, which produces much less in winter. The robustness of this system relies on this energy mix in order to secure winter power generation. It is true that the slowness of administrative procedure has improved. The recurrent opposition around wind power confirms the need to obtain an agreement on electricity with the EU.

Speaker #1: We are talking about billions over the next 20 years in order to absorb the amount of decentralized energy produced, in particular by solar panels.

Speaker #1: Finally, the question of winter supply remains crucial. This is where the energy mix really becomes important, and we have to be able to rely on wind farms, because there is more wind in winter, both night and day. This energy form could replace solar power, which produces much less in winter.

Speaker #1: So the robustness of this system relies on this energy mix in order to secure winter power generation. It's true that the slowness of administrative powers—of administrative procedures, sorry—has improved.

Speaker #1: And the recurrent opposition around wind power confirms the need to obtain an agreement on electricity with the EU. What we are doing: we are moving forward in terms of energy, solar energy.

François Fellay: What we are doing, we are moving forward in terms of solar energy. We rank fourth in Switzerland in terms of installed capacity in this area. It is extremely important to be able to absorb this quantity. We are also among the three largest investors in industrial solar power in Switzerland. We have seven new solar contracting installations, one with batteries, and three extensions to existing sites in this area. As regards energy and efficiency, we are working at both levels, both efficacy, doing same thing with less energy, and efficiency. In other words, maximizing the value created by energy that is consumed. As regards wind power, we have procedures which take quite a lot of time, administrative procedures, and in view of this, we are also investing in France.

Speaker #1: We are the—we rank fourth in Switzerland in terms of installed capacity. In this area, it is extremely important to be able to absorb this quantity.

Speaker #1: We are also among the three largest investors in industrial solar power in Switzerland. We have seven new solar contracting installations, one with batteries, and three extensions to existing sites in this area.

Speaker #1: Now, as regards energy and efficiency, we are working at both levels: both efficacy—doing the same thing with less energy—and efficiency; in other words, maximizing the value created by the energy that is consumed.

Speaker #1: As regards wind power, we have procedures which take quite a lot of time—administrative procedures—and in view of this, we are also investing in France, not to the detriment of Switzerland, but we have this investment capacity.

François Fellay: Not to the detriment of Switzerland, but we have this investment capacity to invest in projects which produce a yield and which improve the financial base of the group, enabling it to increase its investment in domestic energy production. As regards electric grids, we have a rural grid. We have 11,000 kilometers of power lines. This requires considerable investment, particularly with regard to maintain the lines and to achieve the injection of new renewable energies, in particular solar power, as I have explained. Then, of course, there is the question of smart meters, which have been rolled out 2 years ahead of the time limit imposed by the federal ordinance. That enables us to exploit these data and to further increase our management possibility, and to further increase the flexibility of the electric grid, and to improve the relevance of investments in this area.

Speaker #1: To invest in projects which produce a yield and which improve the financial base of the group, enabling it to increase its investment in domestic energy production.

Speaker #1: As regards electric grids, we have a rural grid; we have 11,000 kilometers of power lines. This requires considerable investment, particularly with regard to maintaining the lines.

Speaker #1: And to achieve the injection of new renewable energies, in particular solar power, as I've explained. Then, of course, there is the question of smart meters, which have been rolled out two years ahead of the time limit imposed by the federal ordinance. That enables us to exploit these data and to further increase our management possibilities and to further increase the flexibility of the electric grid.

Speaker #1: And to improve the relevance of investments in this area. As regards greenhouse gas emissions reduction, our New Building Solutions building unit is working hard on the renewal of Swiss building stock.

François Fellay: As regards to greenhouse gas emissions reduction, our new building solutions building unit is working hard on the renewal of the Swiss building stock. This is an important determining factor in reduction of greenhouse gases. This will contribute to the further decarbonization of French-speaking Switzerland. As regards wintertime supply security, here we need a maximum mix of production, wind, solar, and hydropower. We also have to look towards our potential acceptance of the Bilaterals III round, which will enable us to strengthen our position in this sector. Just like to remind you that we are continuing to drive forward the energy transition. There cannot be any energy transition without a secure energy supply. I will now give the floor to my colleague, Nicolas Kohn, our CFO, to present the financial results.

Speaker #1: This is an important determining factor in the reduction of greenhouse gases, and this will contribute to the further decarbonization of French-speaking Switzerland. As regards winter—wintertime supply security—here, we need a maximum mix of production: wind, solar, and hydropower.

Speaker #1: And we also have to look towards our potential acceptance of the bilateral three-round, which will enable us to strengthen our position in this sector.

Speaker #1: I would just like to remind you that we are continuing to drive forward the energy transition. There cannot be any energy transition without a secure energy supply.

Speaker #1: I will now give the floor to my colleague, Nicolas Cohn, our CFO, to present the financial results. As announced by Nicolas Fellet, the half-year 2026 results confirm a clear improvement in operational profitability and a gradual return towards historical levels.

Nicolas Conne: As announced by Nicolas Fillet, the H1 2026 results confirm a clear improvement in operational profitability and a gradual return towards historical levels. I would draw your attention to the fact that the data which are being presented to you take into account the reorganization of the business units, which took place on 1 July last year. Adjusted performance, as presented at the end of each year, is perfectly in line with the Swiss GAAP FER requirements because there were no non-operating effects. As you can see on the screen, the operating revenues were all up. In particular, operating revenues, which were up from CHF 386 million to CHF 407 million. Change was +CHF 21 million, in other words, 5%.

Speaker #1: I would draw your attention to the fact that the data which are being presented to you take into account the reorganization of the business units, which took place on July 1st last year.

Speaker #1: Adjusted performance, as presented at the end of each year, is perfectly in line with the Swiss TAAP FER requirements because there were no non-operating effects.

Speaker #1: As you can see on the screen, the operating revenues were all up, in particular operating revenues, which were up from 386 million Swiss francs to 407 million Swiss francs.

Speaker #1: The change was plus 21 million Swiss francs, in other words, 5%. As regards EBITDA, this was also up by 38%—plus 27 million Swiss francs—thanks to our Energy and Markets business units, mainly through the energy supply margin.

Nicolas Conne: As regards EBITDA, this was also up by 38%, +CHF 27 million, thanks to our energy and markets business units, mainly through the energy supply margin. I will come back to this in a minute. Thanks to our investments, EBIT stood at CHF 46 million, which was 11% compared with 6% last year, almost double. As regard to associates, the contribution from associates was CHF 12 million compared with CHF 24 million. The contribution from Alpiq was CHF 11 million. The contribution from Énergie Ouest Suisse was -CHF 2 million. Half of the 2025 contribution from Alpiq was due to lower electricity prices and a prolonged unavailability of the Gösgen power plant and low hydrology. The net income is CHF 47 million, a change of +CHF 7 million, +19%. Moving on to cash flow from operations.

Speaker #1: I will come back to this in a minute. And thanks to our investments, EBIT stood at CHF 46 million, which was 11%, compared with 6% last year—almost double.

Speaker #1: As regards associates, the contribution from associates was 12 million Swiss francs, compared with 24 million. The contribution from Alpiq was 11 million Swiss francs.

Speaker #1: The contribution from Energy West Suisse was minus CHF 2 million. Half of the 2025 contribution from Alpec was due to lower electricity prices, as well as the prolonged unavailability of the Gusken Power Plant and low hydrology.

Speaker #1: And the net income was 47 million Swiss francs, a change of plus 7 million Swiss francs, up 19%. So, moving on to cash flow from operations—cash flow from operations was 109 million Swiss francs, a change of plus 57 million Swiss francs, which more than doubled.

Nicolas Conne: Cash flow from operations was CHF 109 million compared with CHF 52 million, a change of +CHF 57 million, which more than doubled. There was significantly stronger cash generation. The contribution was due to a number of different business units. The leading business unit is markets, thanks to the electricity margin. What is important to note is that the efficiency program, which started and which has given its first signs of satisfaction last year, is continuing. In terms of the support corporate business union, we have managed to achieve further contributions. This has enabled us to move back to the levels that we achieved in previous years. This is the highest operational profitability since 3 years.

Speaker #1: So, there was significantly stronger cash generation. The contribution was due to a number of different business units. The leading business unit is Markets, thanks to the electricity margin.

Speaker #1: What’s important to note is that the efficiency program, which started and which showed its first signs of satisfaction last year, is continuing.

Speaker #1: But in terms of the support and corporate business union, we have managed to achieve further contributions, so this has enabled us to move back to the levels that we achieved in previous years.

Speaker #1: This is the highest operational profitability in three years. If we move on to the contribution of each business unit, I would like to thank the first two motors, drivers of performance, which are complementary: Energy and Markets.

Nicolas Conne: If we move on to the contribution of each business unit, I would like to thank with the first two motors and drivers of performance, which are complementary energy and markets. As regards energy, thermal energy production, there has been an increase in profitability of CHF 28 million. For EBITDA, this derives both from electricity and thermal activities. Electricity generation was +6% at 361 gigawatt hours, thanks to the recommissioning of Forces Motrices du Grand-St-Bernard, and this is despite the low rainfall. This underlines the importance of solar power. These volume effects are materializing in the markets business unit, which fixes the supply tariffs in terms of electricity supply. There has been a change in regulations here. The average cost of energy produced is based now on the total number of the group's facilities, in particular, those which are allocated to basic production.

Speaker #1: As regards energy, specifically thermal energy production, there's been an increase in profitability of 28 million. For EBITDA, this derives from both electricity and thermal activities.

Speaker #1: So, electricity generation was up 6% at 361 gigawatt-hours, thanks to the recommissioning of the fourth Saint-Bernard. This is despite the low rainfall. This underlines the importance of solar power; these volume effects are materializing in the markets and business units, which fix the supply tariffs in terms of electricity supply.

Speaker #1: There's been a change in regulations here. The average cost of energy produced is now based on the total amount and the total number of the group's facilities, in particular those which are allocated to basic production. The other part comes from the investments made and operating costs.

Nicolas Conne: The other part comes from the investments made and operating costs. In the area of thermal production, there has been an increase of CHF 2 million. Heat production is 11% up, and this is due naturally to the construction of district heating plants and also to the extension of our networks and to the connection charges, which are paid by customers when they wish to connect. As regards the markets business unit for electricity procurement and supply, the increase concerns the operating revenues, which is up by 4%, CHF 6 million to CHF 154 million. This takes into account the new regulatory method. You will remember that in the past, we were talking about an authorized margin, which was CHF 60 per customer. That was until the end of last year.

Speaker #1: In the area of thermal production, there has been an increase of 2 million Swiss francs. Heat production is up 11%, and this is due naturally to the construction of district heating plants, as well as the extension of our networks and the connection charges, which are paid by customers when they wish to connect.

Speaker #1: As regards the Markets business unit for electricity procurement and supply, the increase concerns the operating revenues, which are up by 4%, or 6 million Swiss francs, to 154 million Swiss francs.

Speaker #1: And this takes into account the new regulatory method. You will remember that in the past, we were talking about an authorized margin, which was 60 Swiss francs per customer.

Speaker #1: That was until the end of last year, and now it is a different margin, which has to be justified by the DSO. Now, while this is true for distribution products, this pushes up the EBITDA of the Markets BU to 18 million Swiss francs—so, two effects here.

Nicolas Conne: Now it is a different margin, which has to be justified by the DSO. While this is true for distribution products, this pushes up the EBITDA of the markets BU to CHF 18 million. So two effects here. The first concerns the electrical energy margin with a decrease in electrical energy balancing electricity. CHF 9 million come from balancing power, which confirms the forecast of the Romande Energie teams, and this confirms the unit price, which was introduced by Swissgrid for this balancing power. CHF 5 million was generated by the abandonment of the average cost price that we charged previously. In addition, there is the contribution from pumped storage that contributes to this business unit EBITDA. As regards the other units, Grids business unit and the Building Solutions business unit, this materializes the group's growth dynamic. Their destinies are not necessarily similar.

Speaker #1: The first concerns the electrical energy margin, with the decrease in electrical energy balancing electricity. Nine million come from balancing power. This confirms the forecasts of the Romande Energie teams, and this confirms the unit price, which was increased and introduced by Swissgrid for this balancing power.

Speaker #1: And CHF 5 million was generated by the development, by the abandonment of the average cost price that we charged previously. In addition, there is the contribution from pumped storage.

Speaker #1: That contributes to this business unit's EBITDA. As regards the other units, Grid's business unit and the Building Solutions business unit, this materializes the group's growth dynamic.

Speaker #1: Their destinies are not necessarily similar. Obviously, the Grid's business unit is responsible for developing the grid. Its EBITDA decreased slightly following the regulator's decision to reduce the amount of capital.

Nicolas Conne: Obviously, the Grids business unit is responsible for developing the grid. Its EBITDA decreased slightly following the regulator's decision to reduce the amount of capital. There was a decrease of about CHF 2 million in this H1. This was partially compensated for by a corollary effect from the abandonment of the average price method. So this was compensated to the tune of CHF 1 million. The strong progression which has been registered in non-monopoly revenues for other TSOs or industrial customers, their operating revenues have increased by 20% to CHF 22 million. It is an EBITDA of CHF 2 million. Moving on now to Building Solutions. They provide services to customers and to help them to conduct activities aimed at building energy renovation and retrofitting.

Speaker #1: And there was a decrease of about 2 million in this first half-year. This was partially compensated for by the corollary effect from the abandonment of the average price method.

Speaker #1: So, this was compensated to the tune of 1 million. The strong progression which has been registered in non-monopoly revenues for other DSOs or industrial customers—their operating revenues have increased by 20% to 22 million Swiss francs.

Speaker #1: So, an EBITDA of 2 million Swiss francs. Moving on now to Building Solutions. They provide services to customers to help them conduct activities aimed at building energy renovation and retrofitting.

Speaker #1: The change is plus 14 million Swiss francs, an increase of 21%, half of which comes from energy renovation. And the company IDGO, whose operating revenues increased from 5 to 12 million Swiss francs—an increase of 7 million Swiss francs. And the company Christina and Cortine was integrated into the group as of July 1, 2025, which corresponded to an increase of 3 million Swiss francs.

Nicolas Conne: The change is plus CHF 14 million, plus 21%, half of which comes from energy renovation. The company ID GO, whose operating revenues increased from CHF 5 million to CHF 12 million, plus CHF 7 million. The company Cristina & Courtin was integrated into the group as of 1 July 2025, which corresponded to an increase of CHF 3 million. It is also the contribution of energy renovation and retrofitting. It is also the development of electrical installation facilities, particularly in the canton of Vaud. There were some projects, in particular, a large-scale project, which is going to extend over two years at the University of Lausanne with the construction of an aquathermal heating and cooling plant using lake water.

Nicolas Conne: The change is CHF +14 million, +21%, half of which comes from energy renovation. The company ID GO, whose operating revenues increased from CHF 5 million to CHF 12 million, CHF +7 million. The company Cristina & Courtin was integrated into the group as of 1 July 2025, which corresponded to an increase of CHF 3 million. It is also the contribution of energy renovation and retrofitting. It is also the development of electrical installation facilities, particularly in the canton of Vaud. There were some projects, in particular, a large-scale project, which is going to extend over two years at the University of Lausanne with the construction of an aquathermal heating and cooling plant using lake water.

Speaker #1: It's also the contribution of energy renovation and retrofitting. It's also the development of electrical installation facilities, particularly in the Canton of Vaud. And then there were some projects, in particular a large-scale project which is going to extend over two years at the University of Lausanne with the construction of an aquathermal heating and cooling plant using lake water.

Speaker #1: Let's move on now to the two key indicators, which are the ability to generate cash and to invest for the future, and also to invest in order to ensure tomorrow's profitability with CapEx.

Nicolas Conne: Let us move on now to the two key indicators, which are the ability to generate cash and to invest for the future, and also to invest in order to ensure tomorrow's profitability with CapEx. As I mentioned, cash flow more than doubled to CHF 109 million, an increase of CHF 57 million. It more than doubled. The increase in the Énergie Ouest Suisse dividend was confirmed, going up from CHF 10 million in 2025 to CHF 25 million. As regards capital expenditure, capital expenditure was CHF 83 million compared with CHF 90 million. This was a decrease of CHF 7 million, minus 8%. Despite the slowdown in the deployment of smart meters, they continue to progress. District heating assets and network expansion saw an increase of CHF 2 million to CHF 19 million.

Nicolas Conne: Let us move on now to the two key indicators, which are the ability to generate cash and to invest for the future, and also to invest in order to ensure tomorrow's profitability with CapEx. As I mentioned, cash flow more than doubled to CHF 109 million, an increase of CHF 57 million. It more than doubled. The increase in the Énergie Ouest Suisse dividend was confirmed, going up from CHF 10 million in 2025 to CHF 25 million. As regards capital expenditure, capital expenditure was CHF 83 million compared with CHF 90 million. This was a decrease of CHF 7 million, -8%. Despite the slowdown in the deployment of smart meters, they continue to progress. District heating assets and network expansion saw an increase of CHF 2 million to CHF 19 million.

Speaker #1: As I mentioned, cash flow more than doubled to 109 million Swiss francs. An increase of 57 million Swiss francs in more than doubled. And the increase in the energy West Swiss dividend was confirmed from going up from 10 million Swiss francs in 2025 to 2025 million Swiss francs.

Speaker #1: So, as regards capital expenditure, capital expenditure was 83 million Swiss francs, compared with 90 million Swiss francs. This was a decrease of 7 million Swiss francs, minus 8%. Despite the slowdown in the deployment of smart meters, they continue to progress.

Speaker #1: And district heating assets and network expansion saw an increase of 2 million Swiss francs to 19 million Swiss francs. There has also been a renewal of hydropower facilities and solar deployment in Switzerland, with an increase of 1 million Swiss francs to 8 million Swiss francs.

Nicolas Conne: There has been a renewal of hydropower facilities and solar deployment in Switzerland, plus CHF 1 million to CHF 8 million. In France, the figure was minus CHF 5 million due to the takeover of the power station of Bar in France. We also acquired a new wind farm, and we have also recently embarked on the construction of a new solar installation. As regards the outlook, the group's investment outlook has been confirmed at a sustained level. The example I have just mentioned concerns France, and that enables us to continue the development of renewable energies, be it in the field of area of electricity or heat, and to continue the energy transition as regards performance. Following a first marked improvement in operational profitability during the H1, we are expecting more moderate results during the H2.

Nicolas Conne: There has been a renewal of hydropower facilities and solar deployment in Switzerland, CHF +1 million to CHF 8 million. In France, the figure was CHF -5 million due to the takeover of the power station of Bar in France. We also acquired a new wind farm, and we have also recently embarked on the construction of a new solar installation. As regards the outlook, the group's investment outlook has been confirmed at a sustained level. The example I have just mentioned concerns France, and that enables us to continue the development of renewable energies, be it in the field of area of electricity or heat, and to continue the energy transition as regards performance. Following a first marked improvement in operational profitability during the H1, we are expecting more moderate results during the H2.

Speaker #1: And in France, the figure was minus 5 million Swiss francs due to the takeover of the power station of Bar in France. We also acquired a new wind farm, and we have recently embarked on the construction of a new solar installation.

Speaker #1: As regards the outlook, the group's investment outlook has been confirmed at a sustained level. The example I've just mentioned concerns France, and that enables us to continue the development of renewable energies, be it in the area of electricity or heat.

Speaker #1: And to continue the energy transition. As regards performance, following a first marked improvement in operational profitability during the first half-year, we are expecting more moderate results during the second half-year.

Speaker #1: That's due to the usual seasonality of our activities and operations. That's why we are continuing to be very vigilant with regard to the weather.

Nicolas Conne: That is due to the usual seasonality of our activities and operations. That is where we are continuing to be very vigilant with regard to the weather and also with regard to the geopolitical and macroeconomic conditions. Nevertheless, the group remains confident about the remainder of the year following the good H1, and we are also optimistic about the value creation prospects through to 2030, with an adjusted EBITDA by 2030 of CHF 170 million to CHF 190 million, and supported by sustained investment momentum and investment discipline. Thank you very much indeed, Nicolas, for this very detailed presentation of the half-yearly results. Just like to mention before closing the next upcoming dates. We will be announcing the full-year results in Lausanne on 24 March 2027 for the full year of 2026. There will be an investor meeting in Zurich on 25 March 2027.

Speaker #1: And also with regard to the geopolitical and macroeconomic conditions. Nevertheless, the Group remains confident about the remainder of the year, following the good first half-year.

Speaker #1: And we're also optimistic about the value creation prospects through to 2030, with an adjusted EBITDA by 2030 of 170 to 190 million Swiss francs.

Speaker #1: And supported by sustained investment momentum and investment discipline. Thank you very much indeed, Nicolas, for this very detailed presentation of the half-yearly results. I'd just like to mention before closing the next dates, the upcoming dates: we will be announcing the full-year results in Lausanne on 24 March 2027 for the full year of 2026.

François Fellay: Thank you very much indeed, Nicolas, for this very detailed presentation of the half-yearly results. Just like to mention before closing the next upcoming dates. We will be announcing the full-year results in Lausanne on 24 March 2027 for the full year of 2026. There will be an investor meeting in Zurich on 25 March 2027. The shareholders AGM will be on 12 May 2027, and the H1 results for 2027 will be announced on 9 September 2027. Our relations with investors is not confined to a meeting like this once or twice a year.

Speaker #1: There will be an investor meeting in Zurich on March 25, 2027. The shareholders' AGM will be on May 12, 2027. The half-year results for 2027 will be announced on September 9, 2027.

François Fellay: The shareholders AGM will be on 12 May 2027, and the H1 results for 2027 will be announced on 9 September 2027. Our relations with investors is not confined to a meeting like this once or twice a year. It is not just that. Our organization, in particular myself and Nicolas Kohn, remain at your disposal all year round, in particular through Laurent Widmer. We will be available to you if you have any questions in the course of the year. In particular, at this event, we wanted to answer any questions you may have, if you wish to send them in to this email address, which you have on the screen. We have a first question. Annual investment expenditures between about CHF 160 million during the next four years.

Speaker #1: But our relations with investors are not confined to meetings like this once or twice a year. It's not just that. Our organization—in particular, myself and Nicolas Coen—remain at your disposal all year round, in particular through Laurent Widmer.

François Fellay: It is not just that. Our organization, in particular myself and Nicolas *Kohn, remain at your disposal all year round, in particular through Laurent Widmer. We will be available to you if you have any questions in the course of the year. In particular, at this event, we wanted to answer any questions you may have, if you wish to send them in to this email address, which you have on the screen.

Speaker #1: So we will be available to you if you have any questions in the course of the year. And, in particular, at this event, we wanted to answer any questions you may have.

Speaker #1: If you wish to send them in to this email address, which you have on the screen. We have a first question: annual investment expenditures between about 160 million Swiss francs during the next four years.

[Company Representative] (Romande Energie): We have a first question. Annual investment expenditures between about CHF 160 million during the next four years. The grid accounts for about half of this, about CHF 80 million a year. Are these forecasts still topical?

Speaker #1: The agreed accounts are about half of this, approximately 80 million Swiss francs per year. Are these forecasts still current? Thank you for the question.

François Fellay: The grid accounts for about half of this, about CHF 80 million a year. Are these forecasts still topical? Thank you for the question. Yes, these forecasts are still topical. They are still accurate. In the past, we had announced even greater investments. Last year, we had calibrated this investment, which we are capable of making. We have the resources to do that internally with our partners in order to carry out these investments over the coming years. This concerns various investment portfolios, be it in solar production or heat production, or in hydroelectric production, part of which will be in France. The contracts have already been secured for this. We will also be doing more conventional project management.

François Fellay: Thank you for the question. Yes, these forecasts are still topical. They are still accurate. In the past, we had announced even greater investments. Last year, we had calibrated this investment, which we are capable of making. We have the resources to do that internally with our partners in order to carry out these investments over the coming years. This concerns various investment portfolios, be it in solar production or heat production, or in hydroelectric production, part of which will be in France. The contracts have already been secured for this.

Speaker #1: Yes, these forecasts are still topical; they're still accurate. In the past, we announced even greater investments last year. We calibrated this investment, which we are capable of making.

Speaker #1: We had the resources to do that—internally, with our partners—in order to carry out these investments over the coming years. This concerns various investment portfolios, be it in solar production or heat production.

Speaker #1: Or in hydroelectric production, part of which will be in France. The contracts have already been secured for this, and we will also be doing more conventional project management.

François Fellay: We will also be doing more conventional project management. As regards to the grids for the H1, as you have seen, despite the normal slowdown in the installation of smart meters, the need to reinforce this aspect of our activity is still topical, in particular with the increase in solar production and the increased flexibility of storage. So I believe this forecast of an investment of CHF 80 million to CHF 90 million in the grid remains topical for the period of 2026 to 2030.

Speaker #1: As regards the grids, for the first half-year, as you've seen, despite the normal slowdown in the installation of smart meters, the need to reinforce this aspect of our activity is still topical, in particular with the increase in solar production.

François Fellay: As regards to the grids for the H1, as you have seen, despite the normal slowdown in the installation of smart meters, the need to reinforce this aspect of our activity is still topical, in particular with the increase in solar production and the increased flexibility of storage. So I believe this forecast of an investment of CHF 80 million to CHF 90 million in the grid remains topical for the period of 2026 to 2030. You have announced the EBIT increase with investments amounting to CHF 1 billion. Is this not rather low? Would the contribution to EBIT not be more or less the same in a normal period? Well, I would like to let each person gauge whether these figures are too high or too low. We are talking about the Horizon 2030. This was published by François Fellay when talking about the horizon up to 2040.

Speaker #1: And the increased flexibility of storage. So, I believe this forecast of CHF 80 million to CHF 90 million, and investment of CHF 80 million to CHF 90 million in the grid, remains topical for the period of 2026 to 2030.

Speaker #1: You've announced the EBITDA increase with investments amounting to 1 billion Swiss francs. Is this not rather low? Would the contribution to EBIT not be more or less the same?

[Company Representative] (Romande Energie): You have announced the EBIT increase with investments amounting to CHF 1 billion. Is this not rather low? Would the contribution to EBIT not be more or less the same in a normal period?

Speaker #1: In a normal period. Well, I would like to let each person gauge whether these figures are too high or too low. We're talking about the horizon 2030.

Nicolas Conne: Well, I would like to let each person gauge whether these figures are too high or too low. We are talking about the Horizon 2030. This was published by François Fellay when talking about the horizon up to 2040. We are relying here on these various projects, which are in the pipeline of Romande Energie. What we see is that many of these projects are based on pure development. When we start by doing the first studies, we secure a site, and whether it is district heating or a wind farm, these projects take time. That is why the first focus that we are concentrating on for the period up to 2030 is EBITDA, which has to increase as a function of these various facilities. As you will know, between the development of revenues and the accounting mechanisms, there is a gap. There is a mechanical effect.

Speaker #1: As was published by François Ferlier when talking about the horizon up to 2040, we're relying here on these various projects, which are in the pipeline of Romande Energie.

Nicolas Conne: We are relying here on these various projects, which are in the pipeline of Romande Energie. What we see is that many of these projects are based on pure development. When we start by doing the first studies, we secure a site, and whether it is district heating or a wind farm, these projects take time. That is why the first focus that we are concentrating on for the period up to 2030 is EBITDA, which has to increase as a function of these various facilities. As you will know, between the development of revenues and the accounting mechanisms, there is a gap. There is a mechanical effect.

Speaker #1: What we see is that many of these projects are based on pure development. When we start by doing the first studies, we secure a site, and whether it's district heating or a wind farm,

Speaker #1: These projects take time. That's why the first focus we're concentrating on is the period up to 2030's EBITDA, which has to increase as a function of these various facilities.

Speaker #1: As you will know, between the development of revenues and the accounting mechanisms, there is a gap. There is a mechanical effect. This means that the weight of the amortizations in the first years is much greater, mechanically, from an accounting and financial point of view—but also because the number of these facilities, particularly in the area of heat, take quite some time to come up to full capacity, because here we are talking about all the customers who have to be connected up.

François Fellay: This means that the weight of the amortizations in the first years is much greater mechanically from an accounting and financial point of view, but also because a number of these facilities, in particular in the area of heat, take quite some time to come up to full capacity. Because here we are talking about all the customers who have to be connected up. It takes quite some time for all the customers to be connected up in the area that we work in. Building solutions BU has negative results. Can investors hope for positive results, and when will it have an EBIT figure which will be comparable to that of its competitors? Mr. Fellay. Obviously, this is an activity which has margins which are narrower. We have an organization which is in place with two companies, which make up this building solutions, building unit.

Nicolas Conne: This means that the weight of the amortizations in the first years is much greater mechanically from an accounting and financial point of view, but also because a number of these facilities, in particular in the area of heat, take quite some time to come up to full capacity. Because here we are talking about all the customers who have to be connected up. It takes quite some time for all the customers to be connected up in the area that we work in.

Speaker #1: It takes quite some time for all the customers to be connected up in the area that we're working in. Building Solutions BU has negative results.

[Company Representative] (Romande Energie): Building solutions BU has negative results. Can investors hope for positive results, and when will it have an EBIT figure which will be comparable to that of its competitors? Mr. Fellay.

Speaker #1: Can investors hope for positive results? And when will it have an EBIT figure which will be comparable to that of its competitors? Mr. Ferlier.

Speaker #1: Obviously, this is an activity which has margins that are narrower. We have an organization in place with two companies, which make up this Building Solutions building unit—the company Romande Energie Services.

François Fellay: Obviously, this is an activity which has margins which are narrower. We have an organization which is in place with two companies, which make up this building solutions, building unit. The company, Romande Energie Services, which has about 500 employees, and ID GO Management, which is an engineering office. It's a kind of self-contained company. So we have an optimal structure here, which enables us to cope with this enormous demand for the renovation and retrofitting of buildings. The potential is CHF 200 billion in Switzerland for renovation. So this really is a structuring of supply. We have to structure the supply because the demand exists. The demand is there. We have to optimize things. We've already achieved a considerable progression. We have to manage these trends, particularly with regard to line management, this area, and we are working very hard on this.

François Fellay: The company, Romande Energie Services, which has about 500 employees, and ID GO Management, which is an engineering office. It's a kind of self-contained company. So we have an optimal structure here, which enables us to cope with this enormous demand for the renovation and retrofitting of buildings. The potential is CHF 200 billion in Switzerland for renovation. So this really is a structuring of supply. We have to structure the supply because the demand exists. The demand is there. We have to optimize things. We've already achieved a considerable progression. We have to manage these trends, particularly with regard to line management, this area, and we are working very hard on this. How do you explain a lower margin generation in general in the H2? What are the reasons for this, Mr. Kohn? This is due to two factors.

Speaker #1: Which has about 500 employees. And IDGO Management, which is an engineering office. It's kind of a self-contained company. So we have an optimal structure here.

Speaker #1: Which enables us to cope with this enormous demand for the renovation and retrofitting of a building. So, the potential is CHF 200 billion in Switzerland for renovation.

Speaker #1: So, this really is a structuring of supply. We have to structure the supply because the demand exists. The demand is there. We have to optimize things.

Speaker #1: We've already achieved considerable progression. We have to manage these trends, particularly with regard to line management. This is an area we are working very hard on.

Speaker #1: How do you explain a lower margin generation in general in the second half of the year? What are the reasons for this? Mr. Kahn: This is due to two factors.

[Company Representative] (Romande Energie): How do you explain a lower margin generation in general in the H2? What are the reasons for this, Mr. Kohn?

Nicolas Conne: This is due to two factors. First of all, the seasonal nature of our operations. Be it with regard to sales, of course, energy generation is higher as we go towards the winter, and also in the area of demand, and also in the area of trading activities, which are a corollary of this additional production. The upper part of the balance sheet revenues is greater. At the same time, a number of charges can be recorded on a monthly basis, but EBIT amortization cannot. Well, some charges can be smoothed out, evened out over the whole of the year. That's why the situation is more favorable during the first part of the year than during the H2, because the months of July and August in the H2.

Speaker #1: First of all, the seasonal nature of our operations—here, with regard to sales, of course, energy generation is higher as we go towards the winter.

Nicolas Conne: First of all, the seasonal nature of our operations. Be it with regard to sales, of course, energy generation is higher as we go towards the winter, and also in the area of demand, and also in the area of trading activities, which are a corollary of this additional production. The upper part of the balance sheet revenues is greater. At the same time, a number of charges can be recorded on a monthly basis, but EBIT amortization cannot. Well, some charges can be smoothed out, evened out over the whole of the year. That's why the situation is more favorable during the first part of the year than during the H2, because the months of July and August in the H2. What impact has the drought and the hot weather had on your production of hydroelectric electricity?

Speaker #1: And also in the area of demand, and also in the area of trading activities, which are a corollary of this additional production, the upper part of the revenues of the balance sheet—revenues—is greater.

Speaker #1: At the same time, a number of charges can be recorded on a monthly basis, but EBIT amortization cannot. Well, some charges can be moved out, evened out over the whole of the year.

Speaker #1: That's why the situation is more favorable during the first part of the year than during the second half, because of the months of July and August and the second half of the year.

Speaker #1: What impact has the drought and the hot weather had on your production of hydroelectric electricity? Well, I would just like to remind you that we are talking about the first half results.

[Company Representative] (Romande Energie): What impact has the drought and the hot weather had on your production of hydroelectric electricity?

François Fellay: Well, I'd just like to remind you that we're talking about the H1 results. The heat wave started very early in Switzerland and also gave rise to a drought, but the impact of this heat wave has not been completely taken into account in the H1 results. The heat wave did not give rise to any incidents in our facilities. We did not have to cope with any uncertainty due to these extreme climatic conditions. But of course, in general, drought implies both the fact that there is less production in river-based hydroelectric production, and a large part of our hydroelectric production is run-of-river production. So the drought had an impact on that. But we do have a considerable number of wind farms in the country, of solar plants, sorry, solar plants in Switzerland. We had a considerable increase there.

Speaker #1: The heat wave started very early in Switzerland, and also gave rise to a drought. But the impact of this heat wave has not been completely taken into account in the first half year's results.

Speaker #1: This did not give rise the heat wave did not give rise to any incidents in our facilities. We did not have to cope with any uncertainty due to this extreme climatic conditions.

Speaker #1: But of course, in general, drought implies both the fact that there is less production in river-based hydroelectric facilities, and a large part of our hydroelectric production is run-of-river production.

Speaker #1: But so the drought had an impact on that. But we do have a considerable number of wind farms in the country, of solar plants, sorry, solar plants in Switzerland.

Speaker #1: We had a considerable increase there. So, the increase in solar production in Switzerland has been able to compensate, to a large extent, for the decrease in river-based hydroelectric generation.

François Fellay: The increase in solar production in Switzerland has been able to compensate to a large extent for the decrease in run-of-river hydroelectric generation. Of course, we suffer from the same consequences that other companies suffer from as regards our production profile. What is very important for us is to focus on the energy mix. We cannot target too much of our investments on any one means of generation because we have to take into account climate uncertainty. Thanks to the energy mix, which involves both hydroelectric production, solar production, and wind production, this has enabled us to offset the impact of the heat wave and the drought. I would also like to underscore the importance of investments in cooling. It is necessary not just to provide district heating, but also district cooling.

Speaker #1: Of course, we suffer from the same consequences that other companies suffer from as regards our production profile. But what is very important for us is to focus on the energy mix. We cannot target too much of our investments on any one means of generation because we have to take into account climate uncertainty.

Speaker #1: And thanks to the energy mix, which involves both hydroelectric production and solar production, and wind production, this has enabled us to offset the impact of the heat wave and the drought.

Speaker #1: But I would also like to underscore the importance of investments in cooling. It’s necessary not just to provide district heating, but also district cooling.

Speaker #1: And we also have to decarbonize our operations in order to be able to reduce the factors that are the cause of global warming. Well, that brings us to the end of our questions.

François Fellay: We also have to decarbonize our operations in order to be able to reduce the factors that are the cause of global warming. Well, that brings us to the end of our questions. I would like to thank you very much indeed for participating. I would like to thank all the people who have contributed to the success of this year's announcement of the H1 results. We continue to be at your disposal if you have any additional questions in order to keep our relationship with our investors very much alive. Thank you. We look forward to seeing you again in future.

Speaker #1: I would like to thank you very much indeed for participating. I would also like to thank all the people who have contributed to the success of this year's announcement of the first half-year's results.

Speaker #1: We continue to be at your disposal if you have any additional questions, in order to keep our relationship with our investors very much alive.

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