BKW UNTERNEHMENSPRÃSENTATION
BKW UNTERNEHMENSPRÄSENTATION
2015 Half-year results Suzanne Thoma, CEO Ronald Trächsel, CFO 3 September 2015
Company Presentation | BKW | 03 September 2015
Overview Financials HY 2015 Outlook and strategy update Summary
2
Company Presentation | BKW | 03 September 2015
3
Strategy implementation on track – Good half-year results achieved – Revenue impacted by lower electricity prices and strong Swiss franc – Services: Significant growth achieved (+36%) – BKW able to compensate negative electricity price- and FX-effects – EBIT HY 2015 at CHF 199m (+41%) – Stable operating cash flow – Half-year results support outlook 2015
CHF m -11%
1,432
1,278 +41% 199
141 HY 2014
HY 2015
Operating revenue Operating profit/EBIT
Financials HY 2015
Company Presentation | BKW | 03 September 2015
5
Income statement CHF m Net sales
HY 2014
HY 2015
1,386
1,225
46
53
1,432
1,278
Energy procurement
-804
-538
Other operating expenses
-404
-460
224
280
-105
-92
22
11
EBIT
141
199
Financial result
-18
-59
Income taxes
-31
-17
92
123
Other income Operating revenue
EBITDA Depreciation, amortisation and impairment Income from associates
Net profit
change in %
-11%
25%
41%
34%
Company Presentation | BKW | 03 September 2015
Operating revenue per business area CHF m -22% 1,012 784 +9%
356
326
+36% 191 140
HY 2014
HY 2015 Energy
HY 2014
HY 2015 Grid
HY 2014
HY 2015 Services
6
Company Presentation | BKW | 03 September 2015
7
Income statement CHF m Net sales
HY 2014
HY 2015
1,386
1,225
46
53
1,432
1,278
Energy procurement
-804
-538
Other operating expenses
-404
-460
224
280
-105
-92
22
11
EBIT
141
199
Financial result
-18
-59
Income taxes
-31
-17
92
123
Other income Operating revenue
EBITDA Depreciation, amortisation and impairment Income from associates
Net profit
change in %
-11%
25%
41%
34%
Company Presentation | BKW | 03 September 2015
Comparable EBIT on PY level, able to compensate negative electricity price- and FX-effects CHF m +41%
61
199
FX on provisions
HY 2015 reported
-2% 141
138
HY 2014
FY 2015 comparable
8
Company Presentation | BKW | 03 September 2015
Net profit development
CHF m
+34% 19
123
Income taxes «Robin Hood»
Net profit HY15 reported
51 92
-39
Net profit HY14
Diff. performance of state funds (net of tax)
FX on provisions (net of tax)
9
Company Presentation | BKW | 03 September 2015
Solid operating cash flow CHF m 538
500 400 311 300 200
205
182
159
100 0 HY 2013
FY 2013
HY 2014
FY 2014
HY 2015
FY 2015
10
Company Presentation | BKW | 03 September 2015
Investments: Strategy implementation
CHF m 296
131
125
growth maint./ repl.
HY 2013
HY 2014
HY 2015
11
Company Presentation | BKW | 03 September 2015
Solid financials to put strategy in place CHF m 1500
1000
1,264
1,229
500 0
-435
-470 -500 -1000 -1500
-1,734
-1,664
-2000
FY 2014
HY 2015
Cash & equivalents & current financial assets Financial debt Net financial debt
12
Company Presentation | BKW | 03 September 2015
Sound balance sheet: Equity ratio at 32%
CHF bn
%
31.8%
31.5%
7,9 2,4
5,4
5,5
7,6 2,2 5,4
2,5
FY 2014
5,2
2,4
HY 2015
Non-current assets Current assets Equity Liabilities Equity ratio
13
Company Presentation | BKW | 03 September 2015
14
Energy CHF m
-22%
– Operating revenue burdened by low prices for electricity and strong Swiss Franc
1,012
– Sales volumes on PY levels (Italy +200 GWh)
784
– Production volumes higher: +337 GWh
486
– Successful management of own energy position
+64% 142
87 HY 2014 HY 2015 Operating revenue
HY 2014 HY 2015 Operating profit
– Lower production cost thanks to efficiency and cost reduction measures – Positive FX-effect on provisions for onerous contracts: +CHF 61m
Successful compensation of negative electricity price- and FX-effects on EBIT-level
Company Presentation | BKW | 03 September 2015
Grid CHF m – Operating revenue higher 9%, mainly due to higher volumes
– Additional increase of already stable operating profit
+9% 356 326 +14% 60 HY 2014 HY 2015 Operating revenue
68
HY 2014 HY 2015 Operating profit
Stable contribution to operating profit delivered
15
Company Presentation | BKW | 03 September 2015
Services CHF m – Operating revenue significantly higher: +36% – Organic growth 8% – 10 acquisitions since June 2014 lead to growth of 28%
+36%
– Operational performance of acquired companies on planned levels (cash positive)
191
– EBIT impacted by initial/one-time acquisitions- and integration cost
140
HY 2014 HY 2015 Operating revenue
1.1 0.3 HY 2014 HY 2015 Operating profit
Growth achieved – operational performance on track
– EBIT-contribution in second halfyear expected to be stronger
16
Outlook and strategy update
Company Presentation | BKW | 03 September 2015
Outlook FY 2015 confirmed – Negative impact of energy prices on operating result – Strengthened Swiss franc adds additional burden – Partially compensated by – efficiency and cost management
– active management of the energy position – result-driven management of grid business – growth of services business
Good results expected, but below strong 2014
18
Company Presentation | BKW | 03 September 2015
BKW Strategy: Robust business model
19
Company Presentation | BKW | 03 September 2015
Wind farm acquisitions and projects – Regulated production – Technological competence – Geographically balanced portfolio
– First wind power investment in France: – Acquisition of Fresnoy Brancourt (F) wind farm – HelveticWind partnership (BKW stake 29%): –
Acquisition of wind farm in Genzano di Lucania (I)
– Largest Swiss wind farm Juvent (BKW stake 65%) –
Well-hedged wind farm portfolio
Planned 2nd repowering, annual production: 70m kWh
20
Company Presentation | BKW | 03 September 2015
Small hydro power projects – Regulated production – Technological competence – Political support
– Start of construction work in HY 2015: –
Total installed capacity ~5 MW
–
In operation (expected): spring 2017
– Several small hydro power plants already under construction:
Largest Swiss small hydro power portfolio
–
Total installed capacity ~12 MW
–
In operation (expected): summer 2016
21
Company Presentation | BKW | 03 September 2015
Planned purchase of Alpiq stake in swissgrid – End-July, BKW exercised its pre-emption right to purchase Alpiq stake of ~30% – Economically viable investment in Swiss energy sector – Safeguarding value of current investment in swissgrid – Purchase price: ~CHF 300m – Purchase will be exercised via Group company BKW Netzbeteiligung AG (BKW stake: 50.1%)
Investment focus on stable long-term revenues in an environment characterized by uncertainty
22
Company Presentation | BKW | 03 September 2015
Price policy FY 2016: Higher grid tariffs – Overall: average increase of 9% in electricity prices – Electricity prices remain stable, but grid tariffs increase – Grid tariff increase based on ElCom decision in FY 2014 – EBIT impact of tariff increase: CHF 50m to CHF 60m
Stabilization in a difficult environment
23
Company Presentation | BKW | 03 September 2015
Services portfolio: Putting it all together antec group AG
Photovoltaic/ Digitization
Planning/Engineering Group
Building technologies Grid and infrastructure services
–
Battery Group
Research & Developent
24
Company Presentation | BKW | 03 September 2015
25
Acquisition of Solare Datensysteme (SDS) – German-based market leader in monitoring of photovoltaic installations – Over 230'000 installations – 70% of existing customers based in Germany, 90% in Europe – 84 employees, annual operating revenue: ~EUR 15m – BKW strengthened position in photovoltaic service business – Synergies in direct marketing of solar power as well as in developing innovative solutions in building technology and optimization of self-consumption
Company Presentation | BKW | 03 September 2015
Acquisition of antec group – One of Switzerland's leading building technology planning groups – 40 employees, annual operating revenue: ~CHF 15m – BKW closed last gap in complete value chain for building technology services – Synergies and new market opportunities due to increasing complexity in interaction of new technologies
antec group AG
26
Company Presentation | BKW | 03 September 2015
Acquisition of Casa delle Nuove Energie – Specialist in energy efficiency and renewable energies in Italy, offering a comprehensive range of energy supply solutions – Operates network of 75 sales outlets throughout Italy – Customers are SMEs and residential households – Acquisition will allow BKW to offer a broader range of innovative solutions to customers – Annual operating revenue: ~EUR 10m
27
Summary
Company Presentation | BKW | 03 September 2015
BKW strategy shaped to create value – Clear strategy – Consistent implementation – Good half-year results confirm outlook FY 2015
buildup services
strengthen energy develop grid
BKW business model: Robust, profitable and sustainable
29
Appendix
Company Presentation | BKW | 03 September 2015
Shareholder structure – free float of 22.6% BKW Inc. shares are listed on the main standard of SIX Swiss Exchange (SIX) and are included in the Swiss Performance Index (SPI) Significant shareholders
22.6%
Canton of Berne Groupe E Ltd. 52.5%
8.2%
E.ON SE (exchangeable bond) Treasury shares (convertible bond)
6.7% 10.0%
Free float
31
Company Presentation | BKW | 03 September 2015
Generation in GWh Generation and purchases in GWh
HY 2014
HY 2015
Hydroelectric plants
1,758
1,835
Nuclear power plants incl. purchase contracts
3,230
3,186
82
355
448
479
Total generation
5,518
5,855
Trade (purchases) and energy buy-backs
5,096
4,880
10,614
10,735
3,046
3,046
Fossil-thermal power plants New renewable energy incl. fin. investments
Total Total capacity MW
Capacity HY 2015
56%
44%
Peak load Base load
Output HY 2015 21% Peak load
79%
Base load
Peak load: storage, pump storage plants and CCGT Tamarete Base load: run-of-river, nuclear, other plants
32
Company Presentation | BKW | 03 September 2015
33
BKW Group – Generation overview Switzerland (Core market) Generation HY 2015 (incl. French purchase contracts)
Installed production 30.06.2015 Installed production under construction
Germany 5.0 TWh
2’343 MW 50 MW
Generation HY 2015
0.1 TWh
Installed production 30.06.2015
141 MW
Installed production under construction
248 MW
Italy France
Generation HY 2015
0.7 TWh 561 MW
Generation HY 2015
0 TWh
Installed production 30.06.2015
Installed production 30.06.2015
0 MW
Installed production under construction
Installed production acquired after 30.06.2015
14 MW
0 MW
Company Presentation | BKW | 03 September 2015
Appendix: Sales in GWh Sales in GWh
HY 2014
HY 2015
3,456
3,421
832
1,031
6,096
6,048
Pump energy
128
136
Transmission losses and own consumption
102
99
10,614
10,735
Sales Switzerland Sales International Trading
Total
– 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
34
Company Presentation | BKW | 03 September 2015
Financial calendar and contact information Financial calendar – Publication of 2015 Annual Results: 17 March 2016 – Annual General Meeting: 13 May 2016 – Ex-Dividend Date: 18 May 2016 – Dividend Payment: 20 May 2016
For further information, please contact: Thomas Herren, Investor Relations Officer Tel (+41) 58 477 53 56 [email protected]
35
Company Presentation | BKW | 03 September 2015
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.
36
2015 Half-year results Suzanne Thoma, CEO Ronald Trächsel, CFO 3 September 2015
Company Presentation | BKW | 03 September 2015
Overview Financials HY 2015 Outlook and strategy update Summary
2
Company Presentation | BKW | 03 September 2015
3
Strategy implementation on track – Good half-year results achieved – Revenue impacted by lower electricity prices and strong Swiss franc – Services: Significant growth achieved (+36%) – BKW able to compensate negative electricity price- and FX-effects – EBIT HY 2015 at CHF 199m (+41%) – Stable operating cash flow – Half-year results support outlook 2015
CHF m -11%
1,432
1,278 +41% 199
141 HY 2014
HY 2015
Operating revenue Operating profit/EBIT
Financials HY 2015
Company Presentation | BKW | 03 September 2015
5
Income statement CHF m Net sales
HY 2014
HY 2015
1,386
1,225
46
53
1,432
1,278
Energy procurement
-804
-538
Other operating expenses
-404
-460
224
280
-105
-92
22
11
EBIT
141
199
Financial result
-18
-59
Income taxes
-31
-17
92
123
Other income Operating revenue
EBITDA Depreciation, amortisation and impairment Income from associates
Net profit
change in %
-11%
25%
41%
34%
Company Presentation | BKW | 03 September 2015
Operating revenue per business area CHF m -22% 1,012 784 +9%
356
326
+36% 191 140
HY 2014
HY 2015 Energy
HY 2014
HY 2015 Grid
HY 2014
HY 2015 Services
6
Company Presentation | BKW | 03 September 2015
7
Income statement CHF m Net sales
HY 2014
HY 2015
1,386
1,225
46
53
1,432
1,278
Energy procurement
-804
-538
Other operating expenses
-404
-460
224
280
-105
-92
22
11
EBIT
141
199
Financial result
-18
-59
Income taxes
-31
-17
92
123
Other income Operating revenue
EBITDA Depreciation, amortisation and impairment Income from associates
Net profit
change in %
-11%
25%
41%
34%
Company Presentation | BKW | 03 September 2015
Comparable EBIT on PY level, able to compensate negative electricity price- and FX-effects CHF m +41%
61
199
FX on provisions
HY 2015 reported
-2% 141
138
HY 2014
FY 2015 comparable
8
Company Presentation | BKW | 03 September 2015
Net profit development
CHF m
+34% 19
123
Income taxes «Robin Hood»
Net profit HY15 reported
51 92
-39
Net profit HY14
Diff. performance of state funds (net of tax)
FX on provisions (net of tax)
9
Company Presentation | BKW | 03 September 2015
Solid operating cash flow CHF m 538
500 400 311 300 200
205
182
159
100 0 HY 2013
FY 2013
HY 2014
FY 2014
HY 2015
FY 2015
10
Company Presentation | BKW | 03 September 2015
Investments: Strategy implementation
CHF m 296
131
125
growth maint./ repl.
HY 2013
HY 2014
HY 2015
11
Company Presentation | BKW | 03 September 2015
Solid financials to put strategy in place CHF m 1500
1000
1,264
1,229
500 0
-435
-470 -500 -1000 -1500
-1,734
-1,664
-2000
FY 2014
HY 2015
Cash & equivalents & current financial assets Financial debt Net financial debt
12
Company Presentation | BKW | 03 September 2015
Sound balance sheet: Equity ratio at 32%
CHF bn
%
31.8%
31.5%
7,9 2,4
5,4
5,5
7,6 2,2 5,4
2,5
FY 2014
5,2
2,4
HY 2015
Non-current assets Current assets Equity Liabilities Equity ratio
13
Company Presentation | BKW | 03 September 2015
14
Energy CHF m
-22%
– Operating revenue burdened by low prices for electricity and strong Swiss Franc
1,012
– Sales volumes on PY levels (Italy +200 GWh)
784
– Production volumes higher: +337 GWh
486
– Successful management of own energy position
+64% 142
87 HY 2014 HY 2015 Operating revenue
HY 2014 HY 2015 Operating profit
– Lower production cost thanks to efficiency and cost reduction measures – Positive FX-effect on provisions for onerous contracts: +CHF 61m
Successful compensation of negative electricity price- and FX-effects on EBIT-level
Company Presentation | BKW | 03 September 2015
Grid CHF m – Operating revenue higher 9%, mainly due to higher volumes
– Additional increase of already stable operating profit
+9% 356 326 +14% 60 HY 2014 HY 2015 Operating revenue
68
HY 2014 HY 2015 Operating profit
Stable contribution to operating profit delivered
15
Company Presentation | BKW | 03 September 2015
Services CHF m – Operating revenue significantly higher: +36% – Organic growth 8% – 10 acquisitions since June 2014 lead to growth of 28%
+36%
– Operational performance of acquired companies on planned levels (cash positive)
191
– EBIT impacted by initial/one-time acquisitions- and integration cost
140
HY 2014 HY 2015 Operating revenue
1.1 0.3 HY 2014 HY 2015 Operating profit
Growth achieved – operational performance on track
– EBIT-contribution in second halfyear expected to be stronger
16
Outlook and strategy update
Company Presentation | BKW | 03 September 2015
Outlook FY 2015 confirmed – Negative impact of energy prices on operating result – Strengthened Swiss franc adds additional burden – Partially compensated by – efficiency and cost management
– active management of the energy position – result-driven management of grid business – growth of services business
Good results expected, but below strong 2014
18
Company Presentation | BKW | 03 September 2015
BKW Strategy: Robust business model
19
Company Presentation | BKW | 03 September 2015
Wind farm acquisitions and projects – Regulated production – Technological competence – Geographically balanced portfolio
– First wind power investment in France: – Acquisition of Fresnoy Brancourt (F) wind farm – HelveticWind partnership (BKW stake 29%): –
Acquisition of wind farm in Genzano di Lucania (I)
– Largest Swiss wind farm Juvent (BKW stake 65%) –
Well-hedged wind farm portfolio
Planned 2nd repowering, annual production: 70m kWh
20
Company Presentation | BKW | 03 September 2015
Small hydro power projects – Regulated production – Technological competence – Political support
– Start of construction work in HY 2015: –
Total installed capacity ~5 MW
–
In operation (expected): spring 2017
– Several small hydro power plants already under construction:
Largest Swiss small hydro power portfolio
–
Total installed capacity ~12 MW
–
In operation (expected): summer 2016
21
Company Presentation | BKW | 03 September 2015
Planned purchase of Alpiq stake in swissgrid – End-July, BKW exercised its pre-emption right to purchase Alpiq stake of ~30% – Economically viable investment in Swiss energy sector – Safeguarding value of current investment in swissgrid – Purchase price: ~CHF 300m – Purchase will be exercised via Group company BKW Netzbeteiligung AG (BKW stake: 50.1%)
Investment focus on stable long-term revenues in an environment characterized by uncertainty
22
Company Presentation | BKW | 03 September 2015
Price policy FY 2016: Higher grid tariffs – Overall: average increase of 9% in electricity prices – Electricity prices remain stable, but grid tariffs increase – Grid tariff increase based on ElCom decision in FY 2014 – EBIT impact of tariff increase: CHF 50m to CHF 60m
Stabilization in a difficult environment
23
Company Presentation | BKW | 03 September 2015
Services portfolio: Putting it all together antec group AG
Photovoltaic/ Digitization
Planning/Engineering Group
Building technologies Grid and infrastructure services
–
Battery Group
Research & Developent
24
Company Presentation | BKW | 03 September 2015
25
Acquisition of Solare Datensysteme (SDS) – German-based market leader in monitoring of photovoltaic installations – Over 230'000 installations – 70% of existing customers based in Germany, 90% in Europe – 84 employees, annual operating revenue: ~EUR 15m – BKW strengthened position in photovoltaic service business – Synergies in direct marketing of solar power as well as in developing innovative solutions in building technology and optimization of self-consumption
Company Presentation | BKW | 03 September 2015
Acquisition of antec group – One of Switzerland's leading building technology planning groups – 40 employees, annual operating revenue: ~CHF 15m – BKW closed last gap in complete value chain for building technology services – Synergies and new market opportunities due to increasing complexity in interaction of new technologies
antec group AG
26
Company Presentation | BKW | 03 September 2015
Acquisition of Casa delle Nuove Energie – Specialist in energy efficiency and renewable energies in Italy, offering a comprehensive range of energy supply solutions – Operates network of 75 sales outlets throughout Italy – Customers are SMEs and residential households – Acquisition will allow BKW to offer a broader range of innovative solutions to customers – Annual operating revenue: ~EUR 10m
27
Summary
Company Presentation | BKW | 03 September 2015
BKW strategy shaped to create value – Clear strategy – Consistent implementation – Good half-year results confirm outlook FY 2015
buildup services
strengthen energy develop grid
BKW business model: Robust, profitable and sustainable
29
Appendix
Company Presentation | BKW | 03 September 2015
Shareholder structure – free float of 22.6% BKW Inc. shares are listed on the main standard of SIX Swiss Exchange (SIX) and are included in the Swiss Performance Index (SPI) Significant shareholders
22.6%
Canton of Berne Groupe E Ltd. 52.5%
8.2%
E.ON SE (exchangeable bond) Treasury shares (convertible bond)
6.7% 10.0%
Free float
31
Company Presentation | BKW | 03 September 2015
Generation in GWh Generation and purchases in GWh
HY 2014
HY 2015
Hydroelectric plants
1,758
1,835
Nuclear power plants incl. purchase contracts
3,230
3,186
82
355
448
479
Total generation
5,518
5,855
Trade (purchases) and energy buy-backs
5,096
4,880
10,614
10,735
3,046
3,046
Fossil-thermal power plants New renewable energy incl. fin. investments
Total Total capacity MW
Capacity HY 2015
56%
44%
Peak load Base load
Output HY 2015 21% Peak load
79%
Base load
Peak load: storage, pump storage plants and CCGT Tamarete Base load: run-of-river, nuclear, other plants
32
Company Presentation | BKW | 03 September 2015
33
BKW Group – Generation overview Switzerland (Core market) Generation HY 2015 (incl. French purchase contracts)
Installed production 30.06.2015 Installed production under construction
Germany 5.0 TWh
2’343 MW 50 MW
Generation HY 2015
0.1 TWh
Installed production 30.06.2015
141 MW
Installed production under construction
248 MW
Italy France
Generation HY 2015
0.7 TWh 561 MW
Generation HY 2015
0 TWh
Installed production 30.06.2015
Installed production 30.06.2015
0 MW
Installed production under construction
Installed production acquired after 30.06.2015
14 MW
0 MW
Company Presentation | BKW | 03 September 2015
Appendix: Sales in GWh Sales in GWh
HY 2014
HY 2015
3,456
3,421
832
1,031
6,096
6,048
Pump energy
128
136
Transmission losses and own consumption
102
99
10,614
10,735
Sales Switzerland Sales International Trading
Total
– 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
34
Company Presentation | BKW | 03 September 2015
Financial calendar and contact information Financial calendar – Publication of 2015 Annual Results: 17 March 2016 – Annual General Meeting: 13 May 2016 – Ex-Dividend Date: 18 May 2016 – Dividend Payment: 20 May 2016
For further information, please contact: Thomas Herren, Investor Relations Officer Tel (+41) 58 477 53 56 [email protected]
35
Company Presentation | BKW | 03 September 2015
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.
36
