Leading provider of comprehensive energy and infrastructure services. 19th Swiss Seminar Kepler Cheuvreux

Transcription

1 Leading provider of comprehensive energy and infrastructure services 19th Swiss Seminar Kepler Cheuvreux

2 Agenda 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW Overview Strategy Q&A

3 Overview

4 Key figures TH SWISS SEMINAR KEPLER CHEUVREUX BKW Operating revenue* CHF 2.8bn +5% EBIT* CHF 379m +10% Net profit* CHF 271m +16% Operating Cash flow CHF 493m +38% Liquidity CHF 1.2bn +/-0% Net debt CHF 376m -14% Employees 5,900 FTE +900 FTE Generation 11.9 TWh +0.7 TWh 37.5% 52.5% Canton of Berne Groupe E Ltd. Free float Distribution grid ~22'000 km +/- 0 km 10.0% * comparable

5 BKW business areas 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW Energy Grid Services Production (capacity: ~3'500 MW), trading, sales Distribution grid: ~22'000km Services around infrastructure Revenue: CHF 1,300m Employees: 1,300 FTE Revenue: Employees: CHF 700m 1,100 FTE Revenue: Employees: CHF 700m 3,500 FTE

6 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW BKW growth strategy BKW Energie AG

7 Another year of strong results 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW Revenue +5%, operating profit +10% and net profit +16% Strong operating cash flow: CHF 493m (+38%) Successful repositioning of Energy business: EBIT +16% Profitable growth of Services: revenue +30%, EBIT +46% Continued consistent cost reduction CHF m +5% CHF m CHF m +7% 2,577 2,452* 2,300* +10% +12% * 346* +16% +21% * 194* Operating revenue Operating profit Net profit * Comparable figures

8 Operating revenue and EBIT per business area 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW CHF m 1,353* -7% 1, % * +7% % % 736 Operating revenue Operating profit One-off effects % Energy Grid Services *restated for discontinued operations All business areas achieve higher EBIT

9 EBIT development / price effect on revenue 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW CHF m Market price of electricity CHF 670m EUR/MWh EUR/MWh price effect on operating revenue Increased comparable EBIT despite negative price effect of CHF 140m

10 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW Investments 2017 financed with own generated cash flow Other CHF m 1' ,248 1,223 Energy Services 1' Grid CHF 450m ' '500-2'000-1,687-1,600 Energy Cash & equivalents & current financial assets Financial debt Net financial debt Net debt reduced despite high investments

11 Strategy

12 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW BKW invests in attractive markets - Transform Energy business - Develop Grid - Grow Services 2014 FUTURE TODAY We build a robust business by investing in attractive growth markets

13 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW Energy business influenced by changing market structures European power plants: Net increase of installed capacity until 2040 GW 120 Trading: increased volatility and extreme price situations Hours per year with price extremes % tomorrow 10% 30 today solar Solar wind Wind Gas gas Wasser hydro nuclear Kern Kohle coal fluctuating flexible base load <=0 /MWh >100 /MWh Lowest prices Highest prices International market drivers require repositioning of energy business

14 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW Transform Energy Energy trading: services for a volatile energy market TRADING RENEWABLES FLEXIBLE CAPACITIES Investment in renewable energies: wind & small hydro power Installed capacity in MW 700 Focus on operating cost of energy production CHF m % % Cost/TWh Integrated approach: optimisation energy production trading sales Reducing dependency on energy exposed to market while keeping recovery potential

15 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW Develop Grid Owner of largest distribution grid in Switzerland Investments: CHF 120m p.a. ~22,000 km Largest shareholder of Swissgrid: 36.4% (transmission grid owner) Decentralized production Increase efficiency, implement smart grid" Size of grid business adequate; optimized to ensure reliable EBIT-contribution

16 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW BKW well positioned in growing market of infrastructure services BKW Engineering BKW Building Solutions BKW Network Solutions BKW provides integrated, tailored solutions for customers in increasingly complex systems

17 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW Grow Services BKW Building Solutions BKW Network Solutions Growing need for integrated solutions, High market volume; fragmented structure Decentralisation of energy production Major potential in energy efficiency Organizational structure - Market leader in power grid services - Excellent regional coverage - Decentralization requires grid services - Network infrastructure requests growing services Organizational structure BKW Engineering BKW Services: a strong network of companies Considerable need to invest in maintaining and expanding infrastructures Resilient business due to public sector Customers need local providers with full set of competencies - Companies combine competencies to provide tailored customer solutions locally - Exchange of "best in class" practices - Joint technology platforms - Realization of economies of scale BKW delivers integrated solutions into large, sustainable and growing markets

18 Strategic transformation on track 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW Strategic initiative Transform Energy Invest in new renewable energy production Decommission KKM in 2019 Grow infrastructure Services Buildup of Services network Improve efficiency and consequent cost management Already achieved Align energy trading to volatile market Growth of 30% in 3 years, 580 MW installed capacity, 170 MW under constr. Project on track Revenue above CHF 700m, margins improved Buildup of strong network of companies Organization according to market needs Significant reduction of operating cost achieved: -7% in 2017 BKW strategy delivers

19 19TH SWISS SEMINAR KEPLER CHEUVREUX BKW BKW well positioned in attractive markets - Transform Energy business Develop Grid FUTURE - Grow Services - Capitalize on new opportunities of energy market TODAY Investments: CHF 1.3bn in 4 years Financed by: strong operating cash flow BKW active in growth markets

20 Questions?

21 Disclaimer 19TH SWISS SEMINAR KEPLER CHEUVREUX 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.