Investor presentation, September 5th 2017

Transcription

1 Investor presentation, September 5th 2017

2 2017 H ALF- YEAR RESULTS BKW HY 2017: consecutive strong results Operating revenue increased by 9% Consecutive strong results achieved: Operating profit +6% BKW once again able to overcompensate negative electricity price effects Continued rapid growth of services: Revenue +37%, EBIT +40% CHF m +9% 1,298 1,190 CHF m +6% HY 2016 HY 2017 HY 2016 HY 2017 Operating revenue Operating profit

3 Financials HY 2017

4 Income statement 2017 H ALF- YEAR RESULTS BKW CHF m HY 2016 HY 2017 change in % Operating revenue 1,190 1,298 +9% Energy procurement/transport Operating costs EBITDA % Depreciation, amortization and impairment Income from associates EBIT % Financial result Income taxes Net profit from continuing operations % Net profit from discontinued operations 0-2 Net profit %

5 Operating EBIT +6% 2017 H ALF- YEAR RESULTS BKW CHF m % 182 HY 2016 Energy Grid Services other HY 2017 Successful operating performance in all business areas

6 Half-year EBIT history (comparable) 2017 HALF-YEAR RESULTS BKW CHF m 200 Market price of electricity EUR/MWh 30 EUR/MWh 0 HY 2011 HY 2012 HY 2013 HY 2014 HY 2015 HY 2016 HY 2017 Consecutive EBIT-increase despite adverse business environment

7 2017 HALF-YEAR RESULTS BKW EBIT development / price effect on operating revenue CHF m CHF 600m Market price of electricity EUR/MWh EUR/MWh HY 2017 price effect on operating revenue Negative price effect of CHF 600m since 2014

8 Operating cost reduction in organic business 2017 H ALF- YEAR RESULTS BKW CHF m HY 2016 cost reduction HY 2017 organic acquisitions HY 2017 reported Continuous and consistent cost management in organic business

9 2017 HALF-YEAR RESULTS BKW Investments to support strategy Other Energy Investments 63% in growth CHF 143m thereof - Services CHF 114m - Energy (wind & small hydro) CHF 29m Grid CHF 228m Services 37% in maintenance/replacement CHF 85m thereof - Grid CHF 64m - Energy CHF 10m Energy - Other CHF 11m Partner plants CHF 30m Around 2/3 of investments in growth - in line with strategy and long-term capex plan

10 Funds from operations at CHF 223m 2017 HALF-YEAR RESULTS BKW CHF m HY 2013 HY 2014 HY 2015 HY 2016 HY 2017 Consecutive strong cash inflows: record high over five-year period

11 Liquidity at CHF 1.2bn 2017 HALF-YEAR RESULTS BKW CHF m Operating activities Investing activities Financing activities Liquidity at strong CHF 1,2bn despite significant investment activities

12 Sound financial situation: net debt reduced 2017 HALF-YEAR RESULTS BKW CHF m ,394 FY 2015 FY 2016 HY ,248 1, ,686-1,687-1,602 Cash & equivalents & current financial assets Financial debt Net financial debt Net debt level further reduced as a result of strong operating cash flow

13 Maturity profile of financing 2017 HALF-YEAR RESULTS BKW CHF bn CHF 150m CHF 350m CHF 36m CHF 200m EUR 40m CHF 300m EUR 85m EUR 150m Bonds Registered bonds Convertible bond Long-term financing framework ensures financial flexibility

14 Sound balance sheet: equity ratio at 35.9% 2017 HALF-YEAR RESULTS BKW CHF bn 34.3% 35.9% 2,4 8,6 5,6 2,3 8,7 5,6 6,2 6,4 3,0 FY 2016 HY ,1 Non-current assets Current assets Equity Liabilities Equity ratio Increased equity ratio as a result of strong net profit and conversion of treasury shares

15 Share price development and shareholder structure 2017 HALF-YEAR RESULTS BKW CHF % BKW SPI Free float 37.5% 35.7% 52.5% 1.8% 10.0% Canton of Berne Groupe E Ltd. Treasury shares (convertible bond) Free float Performance HY 2017: +14%, free float at 37.5% (incl. convertible bond BKW)

16 Convertible bond 2017 HALF-YEAR RESULTS BKW BKW convertible bond (2020) Principal amount CHF 163.4m Underlying number of shares 4'199'964 Issue price 100 Conversion price CHF Conversions so far (nom.) MCHF Converted shares so far 3,344,921 79% Treasury shares stake July % CHF CHF t BKW convertible bond Conversions Significant conversions: 79%

17 Operating revenue and EBIT per business area 2017 HALF-YEAR RESULTS BKW CHF m Operating revenue Operating profit 692-4% % % 343 HY16 HY17 HY16 HY17 HY16 HY17 HY16 HY17 HY16 HY17 HY16 HY17 Energy Grid Services % % % 15 All business areas with higher EBIT

18 Energy: full compensation of negative price effects 2017 HALF-YEAR RESULTS BKW CHF m 692-4% 666 Negative price effect on revenue: ~CHF -70m Offset on EBIT-level by 80 +1% 81 Management of energy position (trading) Further reduction of operating costs Acquisition of AEK and development of power plants (wind, small hydro) HY 2016 HY 2017 HY 2016 HY 2017 Operating revenue Operating profit Negative price effects fully compensated on EBIT level

19 Grid: EBIT-contribution further increased 2017 HALF-YEAR RESULTS BKW CHF m +16% 342 Revenue higher: - Acquisition of AEK - Compensation payment in relation to transfer of transmission grid % 111 Operating profit higher: - Acquisition of AEK - Reduction of operating costs - Increased Swissgrid stake HY 2016 HY 2017 HY 2016 HY 2017 Operating revenue Operating profit PY: One-time revaluation gain of CHF 11m relating to AEK acquisition EBIT-contribution increased in line with expectations

20 Services: growth leads to strong EBIT-increase 2017 HALF-YEAR RESULTS BKW CHF m % Strong growth of revenue, up by 37% acquisitions in HY % HY 2016 HY 2017 HY 2016 HY 2017 Operating revenue Operating profit 15 Stable EBIT-margin despite high acquisition activities Due to seasonality, stronger development in 2 nd HY expected Expansion on track: strong growth

21 Outlook and strategy update

22 Outlook FY 2017 confirmed 2017 HALF-YEAR RESULTS BKW BKW expects FY17 comparable operating profit to be on FY16 levels profitable growth of services business active management of energy position consistent cost management

23 2017 HALF-YEAR RESULTS BKW Market environment Market price of electricity 60 EUR/MWh International factors: - Subsidies for renewable energies - Low commodity and CO2 prices - Economic policy 30 EUR/MWh Classical energy business under heavy pressure BKW responds with its forward strategy

24 2017 HALF-YEAR RESULTS BKW Shaping the future of energy straightforward, reliable and integrated Existing competencies as platform for growth - Grow services - Grow regulated income Keep recovery potential in energy A robust business model: growth, risk diversification and sustainability

25 2017 HALF-YEAR RESULTS BKW BKW pursues its strategy consequently despite local controversies BKW is a listed company Economic freedom is independent from shareholder structure Economic freedom also applies to state-owned and partly stateowned companies Competition is permitted, common and also welcome! BKW strategy not influenced by local controversies and politics

26 Infrastructure services: a natural evolution 2017 HALF-YEAR RESULTS BKW Engineering & constrution of production facilities Engineering & construction of grid infrastructure Engineering & installation of infrastructures BKW delivers integrated solutions for customers

27 Services: business rationale 2017 HALF-YEAR RESULTS BKW Engineering Experienced in power plant engineering Industry-, infrastructure- and environment-planning and consulting services Grid infrastructure Strong track record in electricity grid infrastructure Multi-utility infrastructure services: electricity, telecom, transportation, water Building technologies Proven competence in electro installation Comprehensive technical services for buildings Core of BKW's services strategy: growth in adjacent fields

28 2017 HALF-YEAR RESULTS BKW Building technologies: buildings are in the center of an intelligent, integrated energy supply system ~50% almost half of all energy in Switzerland is consumed in buildings Effizienzsteigerung Significant market BKW provides integrated services Synergies and new market opportunities result from increasing complexity of new technologies

29 Building technologies: regional structure 2017 HALF-YEAR RESULTS BKW West BKW building technologies Central East Implemented backbone for management and support processes ensures efficiency Strong local focus Powerful company network: regional and nationwide Regional structure combines wide range of services

30 Grid infrastructure: specified multi-utility services 2017 H ALF- YEAR RESULTS BKW Arnold electricity, telecom, transportation water Arnold AG: backbone with strong track record Nationwide presence: efficient regional organization west central east Water infrastructure: acquisitions lead to broad expansion of services Multi-utility services lead by Arnold Group

31 2017 H ALF- YEAR RESULTS BKW Engineering: acquired Groups as basis for further growth Current management process via large Group companies Target structure being implemented: backbone with strong network in D-A-CH region Optimization of knowledge and utilization Combined know-how in energy, infrastructure, environment and survey

32 Services business areas: what we do 2017 H ALF- YEAR RESULTS BKW Engineering Grid infrastructure Building technologies infrastructure, electricity and environment electricity, transport, telecom, water HVAC, electro installations planning & consulting installation maintenance decommissioning Services for infrastructure life-cycle!

33 Services business strategy 2017 H ALF- YEAR RESULTS BKW Services cover whole life-cycle of infrastructure 2. Integrated solutions for changing customer needs 3. Development of further expertise based on traditional competencies Engineering Grid infrastructure Building technologies BKW delivers integrated solutions for customers

34 BKW strategy shaped to create value 2017 H ALF- YEAR RESULTS BKW Existing competencies as platform for growth - Grow services - Grow regulated income Keep recovery potential in energy BKW business model geared toward growth: robust, profitable and sustainable

35 Questions?

36 Financial calendar and contact information 2017 H ALF- YEAR RESULTS BKW Financial calendar Publication of 2017 Annual Results: 20 March 2018 Annual General Meeting: 18 May 2018 Ex-dividend Date: 23 May 2018 Dividend Payment: 25 May 2018 For further information, please contact: Thomas Herren, Investor Relations Officer Tel (+41) investor.relations@bkw.ch

37 Disclaimer 2017 H ALF- YEAR RESULTS BKW 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.