The BKW Group
The BKW Group
«We are shaping the future of energy – straightforward, reliable and integrated» C O M P AN Y P R E S E NT AT I O N , L O N D O N 2 8 . 0 4 . 2 0 1 6
ROADSHOW LONDON | BKW | 28.04.2016
Contents Overview Financial results 2015 Strategy Summary
ROADSHOW LONDON | BKW | 28.04.2016
Key figures Operating Revenue Operating Profit (EBIT)
CHF 2,645 m CHF
382 m
37.4% 22.7%
Operating cash flow
CHF
576 m
Liquidity
CHF
1,4 bn
Net debt
CHF
292 m
Employees
4,000 FTE
Capacity
3,300 MW
52.5%
8.1%
6.7% 10.0%
Canton of Berne Groupe E Ltd. E.ON SE (exchangeable bond)
Generation Distribution grid
12 GWh 22,000 km
Treasury shares (convertible bond) Free float
3
ROADSHOW LONDON | BKW | 28.04.2016
Business areas
Energy
Grid
Services
production, trading, sales
own distribution grid
infrastructure services
- Revenue FY15: CHF 1,600 m - Employees: 830 FTE
- Revenue FY15: - Employees:
- Revenue FY15: - Employees:
CHF 760 m 640 FTE
CHF 430 m 1,850 FTE
4
| BKW |
BKW, a growing company
Financial results 2015
ROADSHOW LONDON | BKW | 28.04.2016
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
+7%
Net debt reduction -38%
576 538 +10%
CHF m
CHF m
382 317
2013
347
2014
Operating profit/EBIT
322
2015
2013
2014
2015
Operating cash flow
7
ROADSHOW LONDON | BKW | 28.04.2016
EBIT history CHF m 400
60 EUR/MWh 324*
300
200
317 *
347
382
239*
30 EUR/MWh
100 Market price of electricity
0 FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
* adjusted for exceptional impairment charges for power plants
Solid and stable development of EBIT despite very adverse business environment
ROADSHOW LONDON | BKW | 28.04.2016
Strong EBIT thanks to operational performance and one-off effects CHF m
+10% 73
382
One-off effects
2015 reported
347 309
2014
2015 before one-off effects
Significant compensation of negative price and FX effects
9
ROADSHOW LONDON | BKW | 28.04.2016
Operating revenue and EBIT per business area
10
ROADSHOW LONDON | BKW | 28.04.2016
Consecutive high operating cash flow CHF m 600
538
576
500 400 300
292
322
311
2012
2013
200 100 0 2011
Cash flow on record level
2014
2015
11
ROADSHOW LONDON | BKW | 28.04.2016
Investments: Strategy implementation – 40% of investments in services – 40% of investments in maintenance/replacement, whereof CHF 110m in Grid Maintenance/ replacement
Growth
– 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
12
ROADSHOW LONDON | BKW | 28.04.2016
13
Further improvement of already sound financial situation CHF m
2013
2014
1500 1000
1,394
1,264
2015
797
500 0 -292
-500
-470 -793
-1000
Cash & equivalents & current financial assets
-1500 -1,590 -2000
Net debt reduced by 38%
-1,734
-1,686
Financial debt Net financial debt
ROADSHOW LONDON | BKW | 28.04.2016
Share price development and dividend history 41
+29%
39
BKW
37 35 33 31
SPI
29 27 25
30.12.2014
30.01.2015
28.02.2015
31.03.2015
30.04.2015
31.05.2015
30.06.2015
31.07.2015
31.08.2015
30.09.2015
31.10.2015
30.11.2015
SPI: Swiss Performance Index
Dividend history
CHF
2015: Dividend: CHF 1.60 Dividend yield: 4.2% Payout ratio*: 46%
2.00 1.60 1.20 0.80 0.40 0.00
2011
2012
2013
2014
2015
Performance 2015: +29%, proposed dividend on PY level
* Based on net profit after exceptional effects
31.12.2015
14
Strategy
ROADSHOW LONDON | BKW | 28.04.2016
Market environment 70.00
60 €/MWh
Deterioration of profits of traditional power generation Reduced cash flows while investments for maintenance and replacement stay stable
60.00 50.00 40.00 30.00 20.00 10.00 0.00 2011
•
CO2 reduction
•
Trend to renewables
•
Trend to decentral production
•
From consumers to prosumers
•
Sluggish economy in Europe/CH 2012
-50% 20 €/MWh
2013
2014
2015
2016
16
ROADSHOW LONDON | BKW | 28.04.2016
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"
17
ROADSHOW LONDON | BKW | 28.04.2016
Business areas
Energy
strengthening
Grid
developing
Services
expanding
18
ROADSHOW LONDON | BKW | 28.04.2016
19
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 2019
2015 Decommissioning application submitted 2019 Shut-down of power plant 2034 Decommissioning work finished
ROADSHOW LONDON | BKW | 28.04.2016
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
CHF
800m
Provisions end-2015
State funds end-2015
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
20
ROADSHOW LONDON | BKW | 28.04.2016
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
21
ROADSHOW LONDON | BKW | 28.04.2016
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
We develop integrated energy solutions and offer services from a single source
Digital management of decentralised production
22
ROADSHOW LONDON | BKW | 28.04.2016
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
23
ROADSHOW LONDON | BKW | 28.04.2016
Complex networks: Multi-utility services Complex networks require extensive maintenance Grid
Telecommunications
Water supply
24
ROADSHOW LONDON | BKW | 28.04.2016
Building technologies: Geographical expansion and covering of entire value chain Planning, consulting
Installation
Facility Management
service cluster
25
ROADSHOW LONDON | BKW | 28.04.2016
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
BKW provides comprehensive energetic solutions
installation
service
26
ROADSHOW LONDON | BKW | 28.04.2016
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
27
ROADSHOW LONDON | BKW | 28.04.2016
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
28
ROADSHOW LONDON | BKW | 28.04.2016
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»
29
Thank you for your attention. «We are shaping the future of energy – straightforward, reliable and integrated»
www.bkw.ch
Backup: 2015 Annual Results – Presentation slides "Financials FY 2015" Analyst conference, Zürich - 17 March 2016
2015 ANNUAL RESULTS
Income statement CHF m
2014
2015
Net sales
2,733
2,534
112
111
Operating revenue
2,845
2,645
Energy procurement/transport
-1,545
-1,266
-772
-849
528
530
-218
-214
36
66
EBIT
346
382
Financial result
-13
-107
Income taxes
-42
9
Net profit
292
284
Other income
Operating costs EBITDA Depreciation, amortisation and impairment Income from associates
–
change in %
-7%
0.4%
10%
-3%
| BKW |
17. 03. 2016
32
2015 ANNUAL RESULTS
Operating revenue per business area CHF m -20% 1,957 1,564
+12% +34%
762 683
430 320
2014
2015 Energy
2014
2015
2014
Grid
Fast growing services partly compensates revenue reduction in energy –
2015 Services
| BKW |
17. 03. 2016
33
2015 ANNUAL RESULTS
Operating costs: Consistent cost management pays off
Energy and Grid
Services CHF m
CHF m
-5%
470
+33%
448
401
302 2014
2015
2014
Further significant cost optimization in traditional business areas –
2015
| BKW |
17. 03. 2016
34
2015 ANNUAL RESULTS
| BKW |
Net profit almost at CHF 300m CHF m
-3% 292
-70
+27
284
One-off effect tax
Net profit 2015 reported
+73
222
-38
-17% 184
Net profit 2014 reported
One-off effects
Net profit 2014 ajusted
EBIT-impact
Net profit 2015 ajusted
One-off effects in EBIT
Reported net profit on PY level in spite of weak state fund performance –
17. 03. 2016
35
2015 ANNUAL RESULT S | BKW |
Strong liquidity CHF m
Investments financed through own cash generation
17.03.2016
36
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
37
Further improvement of already sound financial situation CHF m
2013
2014
1500 1000
1,394
1,264
2015
797
500 0 -292
-500
-470 -793
-1000
Cash & equivalents & current financial assets
-1500 -1,590 -2000
Net debt reduced by 38% –
-1,734
-1,686
Financial debt Net financial debt
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Maturity profile of financing Liquidity as of December 31, 2015 Convertible bond Bonds Registered bonds
CHF m 1400 1200 1000 800 600 400 200 0 2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Long-term financing framework ensures financial flexibility –
2028
2029
2030
2031
2032
2033
38
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Sound balance sheet CHF bn
32.2%
31.8%
8,0
7,9 2,4
5,4
2,3
5,4
5,7
5,5
2,6
2,5
2014
Equity ratio at 32% –
%
2015
Non-current assets Current assets Equity Liabilities Equity ratio
39
2015 ANNUAL RESULTS
Reliable dividend policy CHF 2.00 1.60 1.20 0.80 0.40 0.00
Payout ratio*
2011
2012
2013
2014
2015 proposed dividend
40%
35%
40%
40%
46%
* based on net profit after exceptional effects
Proposed dividend on PY level –
| BKW |
17. 03. 2016
40
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Energy CHF m
-20%
– Reduced revenues due to low prices and strong Swiss Franc -CHF 400m
1,957
– Significantly compensated by – management of energy position – consistent cost management
1,564
+18% 486
262
223 2014 2015 Operating revenue
2014 2015 Operating profit
– 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 –
41
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Grid CHF m
+12% 762 683
-3% 135
132
– Operating revenue higher 12%: – passed on third-party costs (levies and charges) – slightly higher volumes – No EBIT-impact
2014 2015 Operating revenue
2014 2015 Operating profit
Once more grid delivers a stable contribution to operating profit –
42
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Services CHF m
+34% 430 320
– Operating revenue: +34%
+53% 11 2014 2015 Operating revenue
– Overproportional EBIT growth: +53% 17
2014 2015 Operating profit
Expansion on track with overpropotional EBIT development –
– 20 acquisitions since June 2014
43
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Generation in GWh
Generation and purchases in GWh
2014
2015
Hydroelectric plants
3,843
3,983
Nuclear power plants incl. purchase contracts
6,080
5,875
Fossil-thermal power plants
468
1,107
New renewable energy incl. fin. investments
858
865
11,249
11'830
9,762
9,145
21,011
20,975
Total generation Trade (purchases) and energy buy-backs Total Total capacity MW
3,046
3,318
Capacity 2015
59%
41%
Peak load
Base load
Output 2015 25% Peak load
75%
Base load
Peak load: storage, pump storage plants and CCGT Tamarete Base load: run-of-river, nuclear, other plants
–
44
2015 ANNUAL RESULTS
| BKW |
BKW Group – Generation overview Germany
Switzerland (Core market) Generation 2015 (incl. French purchase contracts)
9.9 TWh
Installed production 31.12.2015
2’356 MW
Installed production under construction
Generation 2015
0.4 TWh
Installed production 31.12.2015
382 MW
15 MW
Italy
France Generation 2015
0.1 TWh
Installed production 31.12.2015
19 MW
–
Generation 2015
1.5 TWh
Installed production 31.12.2015
561 MW
17. 03. 2016
45
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Sales in GWh
Sales in GWh
2014
2015
Sales Switzerland
6,784
6,684
Sales International
1,687
2,148
12,099
11,703
Pump energy
248
249
Transmission losses and own consumption
193
191
21,011
20,975
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
46
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.
–
17. 03. 2016
47
«We are shaping the future of energy – straightforward, reliable and integrated» C O M P AN Y P R E S E NT AT I O N , L O N D O N 2 8 . 0 4 . 2 0 1 6
ROADSHOW LONDON | BKW | 28.04.2016
Contents Overview Financial results 2015 Strategy Summary
ROADSHOW LONDON | BKW | 28.04.2016
Key figures Operating Revenue Operating Profit (EBIT)
CHF 2,645 m CHF
382 m
37.4% 22.7%
Operating cash flow
CHF
576 m
Liquidity
CHF
1,4 bn
Net debt
CHF
292 m
Employees
4,000 FTE
Capacity
3,300 MW
52.5%
8.1%
6.7% 10.0%
Canton of Berne Groupe E Ltd. E.ON SE (exchangeable bond)
Generation Distribution grid
12 GWh 22,000 km
Treasury shares (convertible bond) Free float
3
ROADSHOW LONDON | BKW | 28.04.2016
Business areas
Energy
Grid
Services
production, trading, sales
own distribution grid
infrastructure services
- Revenue FY15: CHF 1,600 m - Employees: 830 FTE
- Revenue FY15: - Employees:
- Revenue FY15: - Employees:
CHF 760 m 640 FTE
CHF 430 m 1,850 FTE
4
| BKW |
BKW, a growing company
Financial results 2015
ROADSHOW LONDON | BKW | 28.04.2016
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
+7%
Net debt reduction -38%
576 538 +10%
CHF m
CHF m
382 317
2013
347
2014
Operating profit/EBIT
322
2015
2013
2014
2015
Operating cash flow
7
ROADSHOW LONDON | BKW | 28.04.2016
EBIT history CHF m 400
60 EUR/MWh 324*
300
200
317 *
347
382
239*
30 EUR/MWh
100 Market price of electricity
0 FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
* adjusted for exceptional impairment charges for power plants
Solid and stable development of EBIT despite very adverse business environment
ROADSHOW LONDON | BKW | 28.04.2016
Strong EBIT thanks to operational performance and one-off effects CHF m
+10% 73
382
One-off effects
2015 reported
347 309
2014
2015 before one-off effects
Significant compensation of negative price and FX effects
9
ROADSHOW LONDON | BKW | 28.04.2016
Operating revenue and EBIT per business area
10
ROADSHOW LONDON | BKW | 28.04.2016
Consecutive high operating cash flow CHF m 600
538
576
500 400 300
292
322
311
2012
2013
200 100 0 2011
Cash flow on record level
2014
2015
11
ROADSHOW LONDON | BKW | 28.04.2016
Investments: Strategy implementation – 40% of investments in services – 40% of investments in maintenance/replacement, whereof CHF 110m in Grid Maintenance/ replacement
Growth
– 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
12
ROADSHOW LONDON | BKW | 28.04.2016
13
Further improvement of already sound financial situation CHF m
2013
2014
1500 1000
1,394
1,264
2015
797
500 0 -292
-500
-470 -793
-1000
Cash & equivalents & current financial assets
-1500 -1,590 -2000
Net debt reduced by 38%
-1,734
-1,686
Financial debt Net financial debt
ROADSHOW LONDON | BKW | 28.04.2016
Share price development and dividend history 41
+29%
39
BKW
37 35 33 31
SPI
29 27 25
30.12.2014
30.01.2015
28.02.2015
31.03.2015
30.04.2015
31.05.2015
30.06.2015
31.07.2015
31.08.2015
30.09.2015
31.10.2015
30.11.2015
SPI: Swiss Performance Index
Dividend history
CHF
2015: Dividend: CHF 1.60 Dividend yield: 4.2% Payout ratio*: 46%
2.00 1.60 1.20 0.80 0.40 0.00
2011
2012
2013
2014
2015
Performance 2015: +29%, proposed dividend on PY level
* Based on net profit after exceptional effects
31.12.2015
14
Strategy
ROADSHOW LONDON | BKW | 28.04.2016
Market environment 70.00
60 €/MWh
Deterioration of profits of traditional power generation Reduced cash flows while investments for maintenance and replacement stay stable
60.00 50.00 40.00 30.00 20.00 10.00 0.00 2011
•
CO2 reduction
•
Trend to renewables
•
Trend to decentral production
•
From consumers to prosumers
•
Sluggish economy in Europe/CH 2012
-50% 20 €/MWh
2013
2014
2015
2016
16
ROADSHOW LONDON | BKW | 28.04.2016
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"
17
ROADSHOW LONDON | BKW | 28.04.2016
Business areas
Energy
strengthening
Grid
developing
Services
expanding
18
ROADSHOW LONDON | BKW | 28.04.2016
19
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 2019
2015 Decommissioning application submitted 2019 Shut-down of power plant 2034 Decommissioning work finished
ROADSHOW LONDON | BKW | 28.04.2016
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
CHF
800m
Provisions end-2015
State funds end-2015
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
20
ROADSHOW LONDON | BKW | 28.04.2016
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
21
ROADSHOW LONDON | BKW | 28.04.2016
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
We develop integrated energy solutions and offer services from a single source
Digital management of decentralised production
22
ROADSHOW LONDON | BKW | 28.04.2016
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
23
ROADSHOW LONDON | BKW | 28.04.2016
Complex networks: Multi-utility services Complex networks require extensive maintenance Grid
Telecommunications
Water supply
24
ROADSHOW LONDON | BKW | 28.04.2016
Building technologies: Geographical expansion and covering of entire value chain Planning, consulting
Installation
Facility Management
service cluster
25
ROADSHOW LONDON | BKW | 28.04.2016
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
BKW provides comprehensive energetic solutions
installation
service
26
ROADSHOW LONDON | BKW | 28.04.2016
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
27
ROADSHOW LONDON | BKW | 28.04.2016
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
28
ROADSHOW LONDON | BKW | 28.04.2016
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»
29
Thank you for your attention. «We are shaping the future of energy – straightforward, reliable and integrated»
www.bkw.ch
Backup: 2015 Annual Results – Presentation slides "Financials FY 2015" Analyst conference, Zürich - 17 March 2016
2015 ANNUAL RESULTS
Income statement CHF m
2014
2015
Net sales
2,733
2,534
112
111
Operating revenue
2,845
2,645
Energy procurement/transport
-1,545
-1,266
-772
-849
528
530
-218
-214
36
66
EBIT
346
382
Financial result
-13
-107
Income taxes
-42
9
Net profit
292
284
Other income
Operating costs EBITDA Depreciation, amortisation and impairment Income from associates
–
change in %
-7%
0.4%
10%
-3%
| BKW |
17. 03. 2016
32
2015 ANNUAL RESULTS
Operating revenue per business area CHF m -20% 1,957 1,564
+12% +34%
762 683
430 320
2014
2015 Energy
2014
2015
2014
Grid
Fast growing services partly compensates revenue reduction in energy –
2015 Services
| BKW |
17. 03. 2016
33
2015 ANNUAL RESULTS
Operating costs: Consistent cost management pays off
Energy and Grid
Services CHF m
CHF m
-5%
470
+33%
448
401
302 2014
2015
2014
Further significant cost optimization in traditional business areas –
2015
| BKW |
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34
2015 ANNUAL RESULTS
| BKW |
Net profit almost at CHF 300m CHF m
-3% 292
-70
+27
284
One-off effect tax
Net profit 2015 reported
+73
222
-38
-17% 184
Net profit 2014 reported
One-off effects
Net profit 2014 ajusted
EBIT-impact
Net profit 2015 ajusted
One-off effects in EBIT
Reported net profit on PY level in spite of weak state fund performance –
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35
2015 ANNUAL RESULT S | BKW |
Strong liquidity CHF m
Investments financed through own cash generation
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2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
37
Further improvement of already sound financial situation CHF m
2013
2014
1500 1000
1,394
1,264
2015
797
500 0 -292
-500
-470 -793
-1000
Cash & equivalents & current financial assets
-1500 -1,590 -2000
Net debt reduced by 38% –
-1,734
-1,686
Financial debt Net financial debt
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Maturity profile of financing Liquidity as of December 31, 2015 Convertible bond Bonds Registered bonds
CHF m 1400 1200 1000 800 600 400 200 0 2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
Long-term financing framework ensures financial flexibility –
2028
2029
2030
2031
2032
2033
38
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Sound balance sheet CHF bn
32.2%
31.8%
8,0
7,9 2,4
5,4
2,3
5,4
5,7
5,5
2,6
2,5
2014
Equity ratio at 32% –
%
2015
Non-current assets Current assets Equity Liabilities Equity ratio
39
2015 ANNUAL RESULTS
Reliable dividend policy CHF 2.00 1.60 1.20 0.80 0.40 0.00
Payout ratio*
2011
2012
2013
2014
2015 proposed dividend
40%
35%
40%
40%
46%
* based on net profit after exceptional effects
Proposed dividend on PY level –
| BKW |
17. 03. 2016
40
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Energy CHF m
-20%
– Reduced revenues due to low prices and strong Swiss Franc -CHF 400m
1,957
– Significantly compensated by – management of energy position – consistent cost management
1,564
+18% 486
262
223 2014 2015 Operating revenue
2014 2015 Operating profit
– 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 –
41
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Grid CHF m
+12% 762 683
-3% 135
132
– Operating revenue higher 12%: – passed on third-party costs (levies and charges) – slightly higher volumes – No EBIT-impact
2014 2015 Operating revenue
2014 2015 Operating profit
Once more grid delivers a stable contribution to operating profit –
42
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Services CHF m
+34% 430 320
– Operating revenue: +34%
+53% 11 2014 2015 Operating revenue
– Overproportional EBIT growth: +53% 17
2014 2015 Operating profit
Expansion on track with overpropotional EBIT development –
– 20 acquisitions since June 2014
43
2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Generation in GWh
Generation and purchases in GWh
2014
2015
Hydroelectric plants
3,843
3,983
Nuclear power plants incl. purchase contracts
6,080
5,875
Fossil-thermal power plants
468
1,107
New renewable energy incl. fin. investments
858
865
11,249
11'830
9,762
9,145
21,011
20,975
Total generation Trade (purchases) and energy buy-backs Total Total capacity MW
3,046
3,318
Capacity 2015
59%
41%
Peak load
Base load
Output 2015 25% Peak load
75%
Base load
Peak load: storage, pump storage plants and CCGT Tamarete Base load: run-of-river, nuclear, other plants
–
44
2015 ANNUAL RESULTS
| BKW |
BKW Group – Generation overview Germany
Switzerland (Core market) Generation 2015 (incl. French purchase contracts)
9.9 TWh
Installed production 31.12.2015
2’356 MW
Installed production under construction
Generation 2015
0.4 TWh
Installed production 31.12.2015
382 MW
15 MW
Italy
France Generation 2015
0.1 TWh
Installed production 31.12.2015
19 MW
–
Generation 2015
1.5 TWh
Installed production 31.12.2015
561 MW
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2015 ANNUAL RESULTS
| BKW |
17. 03. 2016
Sales in GWh
Sales in GWh
2014
2015
Sales Switzerland
6,784
6,684
Sales International
1,687
2,148
12,099
11,703
Pump energy
248
249
Transmission losses and own consumption
193
191
21,011
20,975
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
46
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.
–
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