The BKW Group «We are shaping the future of energy straightforward, reliable and integrated»

Transcription

1 The BKW Group «We are shaping the future of energy straightforward, reliable and integrated» COMPANY PRESENTATION, LONDON

2 ROADSHOW LONDON BKW Contents Overview Financial results 2015 Strategy Summary

3 ROADSHOW LONDON BKW Key figures Operating Revenue CHF 2,645 m Operating Profit (EBIT) CHF 382 m Operating cash flow CHF 576 m 37.4% 22.7% Liquidity CHF 1,4 bn Net debt CHF 292 m 8.1% 6.7% 10.0% 52.5% Employees 4,000 FTE Capacity Generation Distribution grid 3,300 MW 12 GWh 22,000 km Canton of Berne Groupe E Ltd. E.ON SE (exchangeable bond) Treasury shares (convertible bond) Free float

4 ROADSHOW LONDON BKW Business areas Energy Grid Services production, trading, sales - Revenue FY15: CHF 1,600 m - Employees: 830 FTE own distribution grid - Revenue FY15: CHF 760 m - Employees: 640 FTE infrastructure services - Revenue FY15: CHF 430 m - Employees: 1,850 FTE

5 BKW, a growing company BKW

6 Financial results 2015

7 ROADSHOW LONDON BKW Strategy implementation picks up speed Rapid growth achieved in services business: operating revenue +34% BKW able to compensate about three-quarter of negative electricity price- and FXeffects with operative measures Consecutive strong results achieved: EBIT +10% Operating cash flow on record levels: +7% compared to high 2014 Net debt reduction -38% +7% CHF m +10% CHF m Operating profit/ebit Operating cash flow

8 ROADSHOW LONDON BKW EBIT history CHF m * * EUR/MWh * 30 EUR/MWh FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 Market price of electricity * adjusted for exceptional impairment charges for power plants Solid and stable development of EBIT despite very adverse business environment

9 ROADSHOW LONDON BKW Strong EBIT thanks to operational performance and one-off effects CHF m % before one-off effects One-off effects 2015 reported Significant compensation of negative price and FX effects

10 Operating revenue and EBIT per business area ROADSHOW LONDON BKW

11 ROADSHOW LONDON BKW Consecutive high operating cash flow CHF m Cash flow on record level

12 ROADSHOW LONDON BKW Investments: Strategy implementation Maintenance/ replacement Growth 40% of investments in services 40% of investments in maintenance/replacement, whereof CHF 110m in Grid in line with long-term capex plan CHF 390m Growth Services Energy: Renewables Maintenance/replacement Grid Energy Other 40% or CHF 160m investments in maintenance/replacement

13 ROADSHOW LONDON BKW Further improvement of already sound financial situation CHF m ,394 1, ,590-1,734-1,686 Cash & equivalents & current financial assets Financial debt Net financial debt Net debt reduced by 38%

14 ROADSHOW LONDON BKW Share price development and dividend history % BKW SPI SPI: Swiss Performance Index CHF Dividend history : Dividend: CHF 1.60 Dividend yield: 4.2% Payout ratio*: 46% * Based on net profit after exceptional effects Performance 2015: +29%, proposed dividend on PY level

15 Strategy

16 ROADSHOW LONDON BKW Market environment /MWh Deterioration of profits of traditional power generation Reduced cash flows while investments for maintenance and replacement stay stable CO2 reduction Trend to renewables Trend to decentral production From consumers to prosumers Sluggish economy in Europe/CH -50% 20 /MWh

17 ROADSHOW LONDON BKW Our strategy at a glance Secure sustainable cash flow generation Compensate falling profits from traditional power generation Reduce dependency form energy prices Enable BKW to profit from changing energy-system 2024 "Evolving from a traditional electricity producer to a leading provider of energy and infrastructure services"

18 ROADSHOW LONDON BKW Business areas Energy Grid Services strengthening developing expanding

19 ROADSHOW LONDON BKW Strengthen Energy Optimize existing portfolio - Cost efficieny - Technologies Operating costs Invest in regulated technologies - Wind - Small-scale Hydro wind power installed capacity: capacity under construction: 418 MW 120 MW Expand trading for volatile and decentral energy production Decommissioning nuclear power plant Muehleberg in Decommissioning application submitted 2019 Shut-down of power plant 2034 Decommissioning work finished

20 ROADSHOW LONDON BKW Mühleberg nuclear power plant (KKM) Good production volume achieved in 2015 (2.9 TWh) Decommissioning application submitted Last day of operation determined: December 20, 2019 Financing framework for decommissioning and disposal Cost estimation excl. inflation Provisions end-2015 State funds end-2015 CHF 800m decommissioning cost CHF 861m* CHF 380m. CHF 1,300m disposal cost CHF 725m CHF 550m CHF 2,100m estimated total cost CHF 1,586m CHF 930m * Whereof CHF 350m for post-operation phase and CHF 90m for plant-specific costs have not to be covered by state funds Ensure efficient decommissioning of KKM

21 ROADSHOW LONDON BKW Develop Grid Increasing complexity - Decentralized production - Volatility - Open markets Development of smart and flexible networks offer business oportunities Investing in - Preserving value - Preserving income - New technologies Planned investments until 2024: CHF 1 bn

22 ROADSHOW LONDON BKW Buildup Services - The energy system is becoming increasingly complex - Mastering complexity offers new business opportunities - Services are needed to master complexity Engineering Complex networks Building technology Digital management of decentralised production We develop integrated energy solutions and offer services from a single source

23 ROADSHOW LONDON BKW Engineering: Center of competence strategy - Build strong infrastructure engineering network in Western Europe - Comprehensive engineering solutions: - infrastructure significant renovation and maintenance need - power plants large inhouse expertise - security and environment large inhouse expertise

24 ROADSHOW LONDON BKW Complex networks: Multi-utility services Complex networks require extensive maintenance Grid Telecommunications Water supply

25 ROADSHOW LONDON BKW Building technologies: Geographical expansion and covering of entire value chain Planning, consulting Installation Facility Management service cluster

26 ROADSHOW LONDON BKW Buildings as an integral part of the energy supply system Modern buildings are power plants Rising technological complexity Intelligent deployment of smart technologies BKW Home Energy: Support customers in achieving desire for economic and safe self-sufficiency in electricity consulting planning installation service BKW provides comprehensive energetic solutions

27 ROADSHOW LONDON BKW Digital management of decentralized production Market leader small PV in Europe 250,000 customers Trend to decentralized, partial self-sufficient, private production Optimization of self-consumption

28 ROADSHOW LONDON BKW Strategic investment plan Investments in CHF between now and 2024 New investments in renewable energy approx. CHF 1 bn Expansion of the service business approx. CHF 1 bn approx. CHF 4 bn Maintaining infrastructure approx. CHF 2 bn (1 billion in networks) BKW is able to finane it is strategy with on board cash and sustainable cash flows

29 ROADSHOW LONDON BKW BKW strategy in a nutshell 2024 Secure sustainable cash flow generation Compensate falling profits from traditional power generation Reduce dependeny form energy prices Enable BKW to profit from changing "energy-system" «We are shaping the future of energy straightforward, reliable and integrated»

30 Thank you for your attention. «We are shaping the future of energy straightforward, reliable and integrated»

31 Backup: 2015 Annual Results Presentation slides "Financials FY 2015" Analyst conference, Zürich - 17 March 2016

32 Income statement 2015 ANNUAL RESULTS BKW CHF m change in % Net sales 2,733 2,534 Other income Operating revenue 2,845 2,645-7% Energy procurement/transport -1,545-1,266 Operating costs EBITDA % Depreciation, amortisation and impairment Income from associates EBIT % Financial result Income taxes Net profit %

33 Operating revenue per business area 2015 ANNUAL RESULTS BKW CHF m -20% 1,957 1, % % Energy Grid Services Fast growing services partly compensates revenue reduction in energy

34 2015 ANNUAL RESULTS Operating costs: Consistent cost management pays off BKW Energy and Grid Services CHF m CHF m 470-5% % Further significant cost optimization in traditional business areas

35 Net profit almost at CHF 300m 2015 ANNUAL RESULTS BKW CHF m -3% % Net profit 2014 reported One-off effects Net profit 2014 ajusted EBIT-impact Net profit 2015 ajusted One-off effects in EBIT One-off effect tax Net profit 2015 reported Reported net profit on PY level in spite of weak state fund performance

36 Strong liquidity 2015 ANNUAL RESULTS BKW CHF m Investments financed through own cash generation

37 2015 ANNUAL RESULTS Further improvement of already sound financial situation BKW CHF m ,394 1, ,590-1,734-1,686 Cash & equivalents & current financial assets Financial debt Net financial debt Net debt reduced by 38%

38 Maturity profile of financing 2015 ANNUAL RESULTS BKW CHF m Liquidity as of December 31, 2015 Convertible bond Bonds Registered bonds Long-term financing framework ensures financial flexibility

39 Sound balance sheet 2015 ANNUAL RESULTS BKW CHF bn 31.8% 32.2% % 2,4 7,9 5,4 2,3 8,0 5,4 5,5 5,7 2, ,6 Non-current assets Current assets Equity Liabilities Equity ratio Equity ratio at 32%

40 Reliable dividend policy 2015 ANNUAL RESULTS BKW CHF Payout ratio* proposed dividend 40% 35% 40% 40% 46% * based on net profit after exceptional effects Proposed dividend on PY level

41 Energy 2015 ANNUAL RESULTS BKW CHF m 1,957-20% 1, % Operating revenue Operating profit Reduced revenues due to low prices and strong Swiss Franc -CHF 400m Significantly compensated by management of energy position consistent cost management Volumes sales Switzerland lower due to weather conditions higher thermal and hydro production One-off effects FX-effect on provisions: +CHF 45m compensation W'haven: +CHF 28m Successful Management of energy position and operating costs reduce negative price and FX effects

42 Grid 2015 ANNUAL RESULTS BKW CHF m +12% % Operating revenue Operating profit Operating revenue higher 12%: passed on third-party costs (levies and charges) slightly higher volumes No EBIT-impact Once more grid delivers a stable contribution to operating profit

43 Services 2015 ANNUAL RESULTS BKW CHF m +34% % Operating revenue Operating profit 17 Operating revenue: +34% Overproportional EBIT growth: +53% 20 acquisitions since June 2014 Expansion on track with overpropotional EBIT development

44 Generation in GWh 2015 ANNUAL RESULTS BKW Generation and purchases in GWh Capacity 2015 Hydroelectric plants 3,843 3,983 Nuclear power plants incl. purchase contracts 6,080 5,875 Fossil-thermal power plants 468 1,107 59% 41% Peak load Base load New renewable energy incl. fin. investments Total generation 11,249 11'830 Output 2015 Trade (purchases) and energy buy-backs 9,762 9,145 Total 21,011 20,975 Total capacity MW 3,046 3,318 75% 25% Peak load Base load Peak load: storage, pump storage plants and CCGT Tamarete Base load: run-of-river, nuclear, other plants

45 BKW Group Generation overview 2015 ANNUAL RESULTS BKW Switzerland (Core market) Generation 2015 (incl. French purchase contracts) Installed production TWh MW Germany Generation 2015 Installed production TWh 382 MW Installed production under construction 15 MW France Italy Generation TWh Generation TWh Installed production MW Installed production MW

46 Sales in GWh 2015 ANNUAL RESULTS BKW Sales in GWh Sales Switzerland 6,784 6,684 Sales International 1,687 2,148 Trading 12,099 11,703 Pump energy Delivering electricity directly and indirectly via its distribution partners to more than 1 million residents in Switzerland Strong market position one of the most important distributors in Switzerland Sales international refer to sales activities in Italy Transmission losses and own consumption Total 21,011 20,975

47 2015 ANNUAL RESULTS BKW Disclaimer This presentation contains forward-looking statements which are made on the basis of current expectations and assumptions. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward-looking statements. Potential risks and uncertainties include, among others, such factors as market and economic conditions, governmental regulations, competitive conditions, interest rates and fluctuation in currency exchange rates. Although BKW believes that its expectations reflected in any such forward-looking statement are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved. BKW undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.