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Vattenfall Full Year Results 2007. Presentations by Lars Josefsson, CEO and Jan Erik Back, CFO 7 February 2008. Highlights 2007 - Group. Net sales increased 5.8% to SEK 143,639 million (135,802) EBIT increased 2.7% to SEK 28,583 million (27,821) Profit after tax increased - PowerPoint PPT Presentation
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© Vattenfall AB
VattenfallFull Year Results 2007
Presentations by
Lars Josefsson, CEO and
Jan Erik Back, CFO
7 February 2008
7 Feb 2008© Vattenfall AB
2Highlights 2007 - Group
Net sales increased5.8% to SEK 143,639 million (135,802)
EBIT increased2.7% to SEK 28,583 million (27,821)
Profit after tax increased4.2% to SEK 20,686 million (19,858)
Net debt decreasedby SEK 5,667 million to SEK 43,740 millioncompared with 31 December 2006
7 Feb 2008© Vattenfall AB
3
Return on Net Assetswas 16.6% (FY 2006: 16.8 %)
Return on Equitywas 17.6% (FY 2006: 19.1%)
The Board proposes a dividend of SEK 8,000 million
equivalent to a payout ratio of 40,5%
Highlights 2007 - Group
7 Feb 2008© Vattenfall AB
4Highlights Q4 2007 - Group
Net sales decreased2.8% to SEK 38,329 million (39,428)
EBIT increased24.7% to SEK 6,752 million (5,413)
Profit after tax decreased44.4% to SEK 3,676 million (6,609)
Net debt decreasedby SEK 784 million to SEK 43,740 millionvs 30 September 2007
7 Feb 2008© Vattenfall AB
5EBIT development
Quarterly figures, SEK million
Quarterly figures in SEK million, excluding items affecting comparability
Last 12 months figures in SEK million, excluding items affecting comparability
02 0004 0006 0008 000
10 00012 00014 00016 00018 00020 00022 00024 00026 00028 00030 000
HEW consolidated
Bewag consolidated
GZE consolidated
Danish assets consolidated
7 Feb 2008© Vattenfall AB
6
55.2
73.8
35.21.2
77.7
51.3
36.6
1.9
14.0
21.8
8.20.6
Lower nuclear but higher fossil generation
21 %
41 %
20.6
14.8
9.00.4
HydroNuclearFossilOther
FY 2007 total: 167.6 TWh FY 2006 total: 165.4 TWh
Q4 2006 total: 44.8 TWhQ4 2007 total: 44.7 TWh
Other=wind, biofuel, waste
7 Feb 2008© Vattenfall AB
7
15.5
8.5
11.2
14.8
10.710.7
5.6
3.2
4.1
Higher heat sales
21 %
41 %
4.4
3.23.3 NordicGermanyPoland
FY 2007 total: 36.2 TWh FY 2006 total: 35.2 TWh
Q4 2006 total: 10.9 TWhQ4 2007 total: 12.8 TWh
7 Feb 2008© Vattenfall AB
8Important events
• Unplanned outages at German nuclear plants
• Loss of retail customers in Germany but increasing market shares in the Nordic countries
• Several changes in senior Management
• Continued harsh network regulation in Germany
• Major climate initiatives including launching of an ambitous CO2
reduction target – to cut emissions by 50% until 2030
• Quantitative targets set for each ”strategic ambition”
7 Feb 2008© Vattenfall AB
9Nuclear update – post outages on 28 June
• Damage at German nuclear plant Krümmel has been repaired, some work is still under way
• Following the events, the work at the nuclear power plants Brunsbüttel and Krümmel, a testing and renovations programme as well as the instituting of the September 2007 recommendations, is continued.
• The plants will remain shut-down until these activities are fully completed.
• FY 2007 financial impact totals approximately EUR 201 million(SEK 1,900 million)
Krümmel (1,346 MW) Brunsbüttel (771 MW)
7 Feb 2008© Vattenfall AB
10Important events
• Unplanned outages at German nuclear plants
• Loss of retail customers in Germany but increasing market shares in the Nordic countries
• Several changes in senior Management
• Continued harsh network regulation in Germany
• Major climate initiatives including launching of an ambitous CO2
reduction target
• Quantitative targets set for each ”strategic ambition”
7 Feb 2008© Vattenfall AB
11Increased retail customer churn in Germany
• Some 250,000 customers lost in Germany primarily due to:
– mounting competition and increased churn
– Vattenfall’s notice of price increases as of 1 July
– Inadequate information to the general public following the nuclear outages
Losses should be viewed against the background of previous very high market shares (>80%, corresponding to nearly 2.9 million customers) in Berlin and Hamburg
Measures taken:
• Improved product offers
– launched a very competitively priced Internet product “Easy”
– Nation-wide offerings
• Large-scale dialogue with all customers as well as the general public
• Customer advisory council established
7 Feb 2008© Vattenfall AB
12We are growing our market shares in Sweden
• Vattenfall has exceeded one (1) million customers in the Nordic countries
• Vattenfall’s Swedish retail customer market share has grown from 13% to 15%.
• Customer satisfaction index has improved
• Vattenfall’s products are considered best in the market
7 Feb 2008© Vattenfall AB
13Important events
• Unplanned outages at German nuclear plants
• Loss of retail customers in Germany but increasing market shares in the Nordic countries
• Several changes in senior Management
• Continued harsh network regulation in Germany
• Major climate initiatives including launching of an ambitous CO2
reduction target – to cut emissions by 50% until 2030
• Quantitative targets set for each ”strategic ambition”
7 Feb 2008© Vattenfall AB
14Management and organisational changes
July 2007 Klaus Rauscher resigned asHead of Vattenfall Europe AG and BG Germany.Hans-Jürgen Cramer appointed actingHead of Business Group Germany
August 2007 Helmar Rendez appointednew Head of Group Strategies
January 2008 BG Germany and BG Poland integrated intoBG Central Europe.Tuomo Hatakka appointedHead of BG Central Europe
February 2008 Carolina Wallenius appointed new Head of Group Communications
February 2008 New composition of Executive Group Management (EGM)
7 Feb 2008© Vattenfall AB
15New Group organisation as of 1 January 2008
BG Germany and BG Poland have been integrated intoBG Central Europe
7 Feb 2008© Vattenfall AB
16Important events
• Unplanned outages at German nuclear plants
• Loss of retail customers in Germany but increasing market shares in the Nordic countries
• Several changes in senior Management
• Continued harsh network regulation in Germany
• Major climate initiatives including launching of an ambitous CO2
reduction target – to cut emissions by 50% until 2030
• Quantitative targets set for each ”strategic ambition”
7 Feb 2008© Vattenfall AB
17Rulings from German network regulator
May 2007 The higher Regional Court in Düsseldorf overruled the Regulator’s demand for retroactive tariff reduction
Jan 2008 Bundesnetzagentur ruling on the Distribution business for DSO
Berlin and Hamburg (tariffs valid until end of 2008):• 16% cut on applied tariff in Berlin meaning 10% lower tariff
level compared with 2007• 18% cut on applied tariff in Hamburg meaning virtually
unchanged tariff level compared with 2007
Jan 2008 Ruling on the Transmission business (tariff valid until end of 2008)• 15% cut on applied tariff meaning about 4% higher tariff level compared with 2007. However, costs for e.g. balancing power have increased.
7 Feb 2008© Vattenfall AB
18Important events
• Unplanned outages at German nuclear plants
• Loss of retail customers in Germany but increasing market shares in the Nordic countries
• Several changes in senior Management
• Continued harsh network regulation in Germany
• Major climate initiatives including launching of an ambitous CO2
reduction target – to cut emissions by 50% until 2030
• Quantitative targets set for each ”strategic ambition”
7 Feb 2008© Vattenfall AB
19Vattenfall has published a global Climate Map
For more information see www.vattenfall.com
7 Feb 2008© Vattenfall AB
20Vattenfall’s CO2 emissions reduction target
7 Feb 2008© Vattenfall AB
21Important events
• Unplanned outages at German nuclear plants
• Loss of retail customers in Germany but increasing market shares in the Nordic countries
• Several changes in senior Management
• Continued harsh network regulation in Germany
• Major climate initiatives including launching of an ambitous CO2
reduction target – to cut emissions by 50% until 2030
• Quantitative targets set for each ”strategic ambition”
7 Feb 2008© Vattenfall AB
22Vattenfall’s strategic ambitions - targets
Number One for the customer
Number One for the environment
Profitable growth
Benchmark for the industry
Employer of choice
Strategic ambition
Customer satisfaction index score of 70 for retail customers
Halve CO2 emissions by 2030 compared with 1990 levels
10 % market share in the future, integrated European
energy market
Vattenfall will belong to the upper quartile of the industry
Commitment score of 81
Long-term goal
Customer satisfaction index score of 63 for retail customers
3% reduction in CO2 emissions(approx. 1 million tonnes/year)
10% increase in market share in electricity and heat
generation
11% improvement in productivity,corresponding to cost reduction
of SEK 5 bn from 2006 level
Commitment score of 75
Goal 2008-2010
© Vattenfall AB
Financials
Jan Erik Back, CFO
7 Feb 2008© Vattenfall AB
24
SEK million FY 2007 FY 2006 Change IFRS IFRS %
Consolidated income statement FY 2007
* IAC = items affecting comparability
Net sales 143,639 135,802 5.8
Cost of products sold -103,404 -96,428 7.2
Gross profit 40,235 39,374 2.2
Operating profit (EBIT) 28,583 27,821 2.7
Operating profit, excl. IAC 28,497 27,448 3.8
Financial income 2,276 3,839 -40.7
Financial expenses -6,926 -6,135 12.9
Financial net -4,650 -2,296 -102.5
Profit before taxes 23,933 25,525 -6.2
Taxes -3,247 -5,667 -42.7
Profit for the period 20,686 19,858 4.2
7 Feb 2008© Vattenfall AB
25
SEK million Q4 2007 Q4 2006 Change IFRS IFRS %
Consolidated income statement Q4 2007
* IAC = items affecting comparability
Net sales 38,329 39,428 -2.8
Cost of products sold -27,791 -29,561 -6.0
Gross profit 10,538 9,867 6.8
Operating profit (EBIT) 6,752 5,413 24.7
Operating profit, excl. IAC 6,776 5,449 24.4
Financial income 173 1,520 ---
Financial expenses -2,225 -1,854 20.0
Financial net -2,052 -334 ---
Profit before taxes 4,700 5,079 -7.5
Taxes -1,024 1,530 ---
Profit for the period 3,676 6,609 -44.4
7 Feb 2008© Vattenfall AB
26Electricity price development
Volatile spot prices.Picking up again
after sharp declines in 2006 and 2007
Increasing forward prices
Monthly Spot Average
15
25
35
45
55
65
75
85
jan-05 apr-05 jul-05 okt-05 jan-06 apr-06 jul-06 okt-06 jan-07 apr-07 jul-07 okt-07 jan-08
NordPool (SYSEUR) EEX
Daliy Forward Closing Prices
20,00
25,00
30,00
35,00
40,00
45,00
50,00
55,00
60,00
65,00
70,00
jan-05 apr-05 jun-05 sep-05 dec-05 mar-06 jun-06 sep-06 dec-06 mar-07 jun-07 sep-07 dec-07
ENOYR-08 EEXYR-08 ENOYR-09 EEXYR-09
EUR/MWh
7 Feb 2008© Vattenfall AB
27Above normal hydrological balance
-50
-40
-30
-20
-10
0
10
20
30
40
0
100
200
300
400
500
600
700
800
900
1000
System price
Hydrological balance
SYSSEK/MWhTWh
1996 199919981997 2003200220012000 2004 2005 2006 2007 2008
Nordic countries
7 Feb 2008© Vattenfall AB
28Hedging position as of 31 December 2007
% hedged of planned electricity generation (percentage values are rounded)
Nordic
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010
Germany & Poland
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010
7 Feb 2008© Vattenfall AB
29
EUR/tonne
CO2 allowances
0
5
10
15
20
25
30
35
2007
2008
2009
7 Feb 2008© Vattenfall AB
30Oil, coal, gas and CO2 allowances
0
20
40
60
80
100
120
140
0
10
20
30
40
50
60
70
80
Oil (USD/bbl), Brent Front Month Coal (USD/t), API#2, Front Year Emission allowances CO2 (EUR/t), 2008 Gas (EUR/MWh), NBP, Front Year
USD EUR
7 Feb 2008© Vattenfall AB
31Vattenfall’s cost of NAP2
• Lower allocation of CO2 allowances than expected.• German electricity generating sector must carry the German burden. • Material financial impact on Vattenfall’s German operations, less in Nordic
and Poland
Germany Deficit of CO2 allowances:Estimated net cost (after tax) & cash flow effect
28-33 mn ton
400-500 MEUR p.a. from 2008
DenmarkDeficit of CO2-certificates:Estimated net cost (after tax)& cash flow effect
1.8 mn ton
26-28 MEUR
(approximately)
p.a. from 2008
PolandDeficit of CO2-certificates:Estimated EBIT effect
0.7-1.0 mn ton 14-20 MEUR p.a. from 2008
7 Feb 2008© Vattenfall AB
32EBIT Full Year 2007 vs 2006
27 82128 583
3 0421 378
100
534
1 121
2 970
Q1-Q4 2006 Price Volume O&M Sales andadmin
Depreciations Other Q1-Q4 2007
Millions of SEK
7 Feb 2008© Vattenfall AB
33EBIT Q4 2007 vs Q4 2006
5 413
6 752
852 86
161
578
1 126
1 110
Q4 2006 Price Volume O&M Sales andadmin
Write-downs Other Q4 2007
Millions of SEK
7 Feb 2008© Vattenfall AB
34EBIT Full Year 2007 vs 2006 – secondary segments
27 82128 583
2 195 183
1 047 63 506
-640577
Q1-Q4 2006 Generation Heat Networks Markets Other Q1-Q4 2007
Millions of SEK
SalesVTS
7 Feb 2008© Vattenfall AB
35EBIT Q4 2007 vs Q4 2006 – secondary segments
6 752
5 413
74401
2161 096
448
580
-179
Q4 2006 Generation Heat Networks Markets Other Q4 2007
Millions of SEK
VTSSales
7 Feb 2008© Vattenfall AB
36Financial targets and outcome
2007
Single A category ratingCredit Rating
3.5 – 4.5 times
Cash flow interest coverage after maintenance investments
11 % before tax (= 15 % RoE recalculated into the Groups RoNA requirement)
Return on Net Assets(RoNA, excl. IAC)
Return on Equity (RoE)
TargetsKey Ratio
15 % on average equity 17.6%
16.6%
6.4
A2/A-
Stable outlook
40-60 %Dividend pay-out 40.5 % *
*) Proposed dividend
7 Feb 2008© Vattenfall AB
37Increased capex programme
SEK 173 bn 2008-2012 (2007-2011 was SEK 134 bn)
133
40
0,20
20406080
100120140
Gen
erat
ion
inc.
Hea
t
Net
wo
rks
Oth
er
• Boxberg power plant (675 MW)
• Moorburg power plant (1,640 MW)
• Reichwalde mine
• Nuclear capacity upgrade
• Network improvements
• German and Nordic wind power
• Life-time extensions generation assets in Sweden and Germany
SEK 55 bn(31%)
SEK 107 bn(62%)
SEK 11 bn(6%)
Poland Nordic Germany
7 Feb 2008© Vattenfall AB
38
SEK million 31/12/07 31/12/06 Change IFRS IFRS % I
Consolidated balance sheet
Non-current assets 264,864 251,893 5.1
Current assets 73,372 71,273 2.9
Total assets 338,236 323,166 4.7
Equity 124,132 107,674 15.3
Capital Securities 9,341 8,911 4.8
Interest-bearing liabilitites 57,848 62,664 -7.7
Interest-bearing provisions 56,250 49,217 14.3
Pension provisions 17,735 16,877 5.1
Tax liabilities 26,632 33,460 -20.4
Other non-interest-bearing liabilitites 46,298 44,363 4.4
Total equity and liabilities 338,236 323,166 4.7
7 Feb 2008© Vattenfall AB
39Cash flow development
-40 000
-30 000
-20 000
-10 000
0
10 000
20 000
30 000
Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
-99 2000 2001 2002 2003 2004 2005 2006 2007
Free cash flow fromoperations - Rolling 4quarter (1)
Cash flow beforefinancing activities -Rolling 4 quarter
MSEK
(1) Cash Flow from operating activities minus reinvestments
Figures according to Sw GAAP until Q4 2004.
Figures according to IFRS from Q1 2005.
7 Feb 2008© Vattenfall AB
40Net debt development
SEK million
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
Capital Securities SEK 9.3 billion
Acquisition of Elsam shares
Acquisition of Bewag and GZE shares
Dividend paid
7 Feb 2008© Vattenfall AB
41
Thank you for your attention
© Vattenfall AB
Back-up slides
7 Feb 2008© Vattenfall AB
43Highlights 2007 - Nordic
• EBIT decreased by 696 SEK million to SEK 12 591 million (-5,2%)
• Higher Fuel and O&M costs – mainly due to Danish operations.
• Lower results in Distribution due to the storm ”Per” (290 MSEK) and provsions for restructuring measures (160 MSEK).
• Higher electricity generation due to increased hydro-, fossil- and wind power.
• All windmills at the Lillgrund windpower farm are now generating electricity.
7 Feb 2008© Vattenfall AB
44Key data – BG Nordic
* Excl. intra group transactions** Excl. items affecting comparability (IAC)*** At the end of the period**** Full time equivalents (FTE)
Q4 Q4 % FY FY Amounts in SEK billion 2007 2006 Change 2007 2006
Net sales 12.9 12.0 7.5 46.7 40.1External net sales * 14.1 13.3 6.0 44.4 48.2EBIT ** 3.9 3.3 18.2 12.4 13.2
Net assets *** 91.1 81.7 11.5 91.1 81.7
Electr. generation, TWh 24.1 24.1 --- 91.1 85.8Heat generation, TWh 3.2 3.2 --- 10.7 8.5
Employees **** 9 489 9 158
7 Feb 2008© Vattenfall AB
45Highlights 2007 - Germany
• EBIT increased by SEK 1,454 million to SEK 15 338 million (+10,5%).
• BU Mining & Generation increased its result, despite nuclear outages and impairment losses for pumped storage plants of 1 110 MSEK, thanks to higher prices as well as hedging.
• BU Heat improved its result from the electricity business, mainly due to higher electricity prices.
• Warm weather and storms in the beginning of the year had a negative effect on the BU Heat and BU Distribution businesses.
• Higher feed-in from windpower caused higher EEG costs.
• NAP2 - Total national emissions cut to 453 million tonnes per year. (NAP1 was 499 million tonnes). Vattenfall estimates an annual deficit of 28-33 million tonnes. Estimated cost (after tax) totals EUR 400-500 million.
7 Feb 2008© Vattenfall AB
46Key data – BG Germany
* Excl. intra group transactions** Excl. items affecting comparability (IAC)*** At the end of the period**** Full time equivalents (FTE)
Q4 Q4 % FY FY Amounts in SEK billion 2007 2006 Change 2007 2006
Net sales 29.8 28.5 4.6 112.5 101.5External net sales * 20.6 20.0 3.0 77.5 70.0
EBIT ** 2.8 1.9 47.4 15.4 13.7
Net assets *** 67.8 61.8 9.7 67.8 61.8
Electr. generation, TWh 19.2 19.6 -2.0 72.8 76.2Heat generation, TWh 5.6 4.4 27.3 14.8 15.5
Employees **** 19 656 19 821
7 Feb 2008© Vattenfall AB
47Highlights 2007 - Poland
• EBIT almost flat compared with FY 2006.
• BU Distribution’s results decreased due to tariff reductions which could only partly be compensated by higher volumes.
• Lower heat volumes and prices were compensated by higher prices on electricity.
• Significant positive effect in BU Heat, due to sold excess CO2 allowances.
7 Feb 2008© Vattenfall AB
48Key data – BG Poland
* Excl. intra group transactions** Excl. items affecting comparability (IAC)*** At the end of the period**** Full time equivalents (FTE)
Q4 Q4 % FY FY Amounts in SEK billion 2007 2006 Change 2007 2006
Net sales 2.8 2.7 3.7 9.8 9.4External net sales * 2.6 2.5 4.0 9.3 9.0
EBIT ** 0.3 0.03 --- 1.1 0.9
Net assets *** 10.9 8.8 23.9 10.9 8.8
Electr. generation, TWh 1.3 1.0 30.0 3.8 3.3Heat generation, TWh 4.1 3.3 24.2 10.7 11.2
Employees **** 2 740 2 836
7 Feb 2008© Vattenfall AB
49Net asset development
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
MSEKAcquisition of Elsam shares
Acquisition of Bewag and GZE shares
Consolidation of Danish
assets
7 Feb 2008© Vattenfall AB
50
SEK million Q4 2007 Q4 2006 FY 2007 FY 2006IFRS IFRS IFRS IFRS
Funds from operations (FFO) 10,909 9,527 34,04935,673Change in working capital -2,527 481 -1,718-466
Cash Flow from operating activities 8,382 10,008 32,33135,207Investments -6,753 -6,116 -18,964-16,534Divestments 291 301 9251,720Net investment following thetrans. between Vattenfall and Dong -686Cash and cash equivalents in aquired/divested companies -1 7 2-147Cash Flow from investing activities -6,463 -5,808 -18,037-15,647Cash Flow before financing activities 1,919 4,200 14,29419,560Cash Flow from financing activities 2,024 1,816 -18,662-10,742Cash Flow for the period 3,943 6,016 -4,3688,818Net debt at the end of the period -43,740 -49,407 -43,740-49,407
Consolidated cash flow statement
7 Feb 2008© Vattenfall AB
51
Amounts in SEK million
As ofDec 31, 2007 Treasury Germany Poland NordicTotal %
Cash and bank 1,031 1,395 452 1,1163,995 18
Interest-bearing investments 4,259 5,712 139 51610,626 47
Special Funds 2,593 2,593 11
Brunsbüttel 5,422 5,422 24
Shares 22 22
Total 5,290 15,145 592 1,63222,658 100
Unused committed credit facilities amount to SEK 9,574 million and other undrawn credit- and overdraft facilities amount to SEK 11,413 million.
Break down of group liquidity
7 Feb 2008© Vattenfall AB
52
Amounts in SEK million
As of Dec 31, 2007 Treasury Germany Poland Nordic Total %
Subordinated perpetual Capital Securities 9,341 9,341 14
MTN 652 652 1
EMTN 30,946 30,946 46
Liabilities to assoc. companies 7,106 4,000 11,106 17
Liabilities to minority shareholders 51 5,740 5,791 9
Bank loans and others 1,072 6,273 130 1,878 9,354 14
Total 49,117 10,324 130 7,619 67,190 100
Break down of group debt
7 Feb 2008© Vattenfall AB
53Adjusted gross and net debt
31 Dec 2007 31 Dec 2006SEK million
Gross debt -67 190 -71 575
Present value of net pension obligations (incl actuarial gains/losses) -17 073 -19 670
Mining & environmental provisions -11 975 -10 295
50% of Hybrid securities 4 671 4 455
= Adjusted gross debt -91 566 -97 085
Cash & short term investments 23 450 22 168
German nuclear "Solidarvereinbarung" -3 224 -3 076
Minority owner´s share of German nuclear subsidiaries cash position -3 531 -3 594
= Adjusted cash & short term investments 16 695 15 498
= Adjusted net debt -74 871 -81 587
7 Feb 2008© Vattenfall AB
54Vattenfall debt maturity profile
Dec 31, 2007 Dec 31, 2006
Duration (years) 3,3 1) 3,3
Average time to maturity (years) 6,7 1) 6,6
Net debt (SEK bn) 43,7 49,4
SEK million
Excluding loans from associated companies and minority owners
1) Based on external debt. Excluding Capital Securities the duration is 2,6 years and average time to maturity 6,5 years.
0
2000
4000
6000
8000
10000
12000
2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037
2006 12 31
2007 12 31
7 Feb 2008© Vattenfall AB
55
16,877
26,358
10,295
29,845
1,375
4,6876,502
17,735
29,813
11,975
23,704
2,109
4,8047,549
Pensions
Nuclear
Mining
Taxes
Other
Personnel
Legal
Group provisions (IFRS) up by 1.8%
31 Dec 2007
SEK 97,689 million
31 Dec 2006
SEK 95,969 million
7 Feb 2008© Vattenfall AB
56Return on equity
0%
5%
10%
15%
20%
25%
30%
Rolling 4-quarterIFRS excl IAC
Rolling 4-quarter SwGAAP excl IAC
Average 4-years (16quarter) Sw. GAAP.IFRS from Q42004. Excl. IACRequirement 15%
7 Feb 2008© Vattenfall AB
57Key ratios
Key Ratios (% unless otherwise stated) FY 2007 FY 2006 Q4 2007
RoNA (1) 16.6 16.8
RoE (1) 17.5 18.7
Operating margin (1) 19.8 20.2 17.7
Pre-tax profit margin (1) 16.6 18.5 12.3
Cash Flow interest coverage aftermaintenance investments, times (1) 6.4 7.9 3.9
FFO/net debt 77.8 72.2
Equity/assets ratio 36.7 33.3 36.7
Net Gearing - Net debt/equity 35.2 45.9 35.2
Capitalisation - Net debt/net debt + equity 26.1 31.5 26.1
1) Excluding items affecting comparability