strong annual results 2018 - bkw energie · annual results 2018 investor presentation19.03.2019 37...

Strong annual results 2018Investor presentation, 19 March 2019

| BKW | 219.03.2019ANNUAL RESULTS 2018 INVESTOR PRESENTATION

FY 2018: strong results – the successful transformation continues

• Revenue increased by 7% despite negative energy price effects

• Reported operating profit +10%

• Profitable growth of Services: revenue +20%, EBIT +26%

• Successful repositioning of the Energy business

• Continued consistent reduction of operating cost

+7%

+10%

379 417

2,503 2,675

2017 2018 2017 2018Operating revenue Operating profit

CHF m

| BKW | 19.03.2019ANNUAL RESULTS 2018 INVESTOR PRESENTATION 3

BKW strong business model: growth and robustness

Growing services businessDeveloping grids furtherAligning energy to the future

Financials FY 2018


2017reported adjustments

2017 comparable

2018comparable adjustments

2018reported

changecomparable

in %

Operating revenue 2,503 -11 2,492 2,675 2,675 +7%

EBITDA 529 -11 518 544 52 596 +5%

EBIT 379 -11 368 364 52 417 -1%

Net profit 271 -56 215 239 36 203 +11%

EBIT on PY-level, net profit increased – despite lower electricity prices

Comparable income statement

CHF m

| BKW |

Operating revenue EBIT Net profit

Comparable operating revenue, EBIT and net profit19.03.2019ANNUAL RESULTS 2018 INVESTOR PRESENTATION 6

+7%

+11%364368-1%

239214

Growing operating revenue, EBIT on PY-level, net profit increased

CHF m

2,4922,675

2017 20182017 20182017 2018

| BKW |

239

324 317347

309346 368 364

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

19.03.2019ANNUAL RESULTS 2018 INVESTOR PRESENTATION 7

60 EUR/MWh

30 EUR/MWh

Hedged prices 240 150140

- CHF 750m

price effect on revenue

140 80

Negative price effect 2018 of CHF 80m on revenue largely compensated on EBIT-level

EBIT development / price effect on revenue

CHF m


+127

846820

2017reported

cost reduction/efficiency gains

2018 before acquisitions

acquisitions 2018 adjusted

-331,099

1,065

1,193

Significant efficiency gains in established business areas: More than CHF 160m in last five years

Operating cost: consistent efficiency gains achieved

CHF m


485

growthmaintenance/replacement

Investments

64% in growth

- Services- Energy- Other

311

176132

3

36% in maintenance/replacement

- Grid- Energy- Efficiency, quality, digitalisation

174

1272126

36

3/4 of maintenance/replacement investments in grid, securing regulatory asset base

2/3 of Investments in growth: services and renewable energies

CHF m

Investments partner plants

| BKW |

Strong liquidity at CHF 1.1bn 19.03.2019ANNUAL RESULTS 2018 INVESTOR PRESENTATION 10

1,223

Operatingactivities

Investing activities Financing activities

373 -401

26 -24

1,094

-103

Liquidity above CHF 1bn despite substantial investments

CHF m

| BKW |

1,2231,095

-1,600 -1,569

-377 -474

-2'000

-1'500

-1'000

-500

0

500

1'000

1'5002017 2018

Sound financial situation19.03.2019ANNUAL RESULTS 2018 INVESTOR PRESENTATION 11

Net debt remains on low level – despite significant investments

Cash & equivalents & current financial assetsFinancial debtNet financial debt

CHF m

2017 2018

| BKW |

Long-term financing framework ensures financial flexibility 19.03.2019ANNUAL RESULTS 2018 INVESTOR PRESENTATION 12

0

200

400

600

800

1000

1200

1400

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

Financial liabilities

0.75% bond of CHF 200m successfully issued in 2018

BondsRegistered bondsBond issued in 2018Bond expires in 2019

1,400

1,200

1,000

CHF m

| BKW |

Sound balance sheet: equity ratio at 38.4%19.03.2019ANNUAL RESULTS 2018 INVESTOR PRESENTATION 13

2017 2018

5.7

3.4

2.4

6.7

37.5%

9.12.3

6.8

5.6

3.5

38.4%

9.1

Increased equity ratio thanks to net profit

Non-current assetsCurrent assetsEquityLiabilitiesEquity ratio

CHF bn

| BKW |

Energy Grid Services

Operating revenue and EBIT per business area19.03.2019ANNUAL RESULTS 2018 INVESTOR PRESENTATION 14

2017 2018

+20%

+5%

-4%

142158 190200

5846

-10% -5%

+26%

881

736555

580

11

Low electricity prices with impact on Energy, solid Grid contribution, profitable growth in Services

Operating revenueOperating profitOne-off effects

CHF m

1,2621,326

2017 2018 2017 2018 2017 2018 2017 2018 2017 2018

| BKW |

Energy: negative price effects largely compensated 19.03.2019ANNUAL RESULTS 2018 INVESTOR PRESENTATION 15

2017 2018 2017 2018

Operating revenue Operating profit

5%Higher revenue in spite of negative price effect on revenue of CHF 80m thanks to:

• Higher wind volumes

• Higher wholesale revenue

Largely compensated on EBIT-level by

• Successful management of energy position (trading)

• Better sales margins

• Efficiency gains

142158

-10%

1,2621,326

Key points

Ongoing successful transformation of the Energy business

CHF m

| BKW |

Grid: solid EBIT-contribution19.03.2019ANNUAL RESULTS 2018 INVESTOR PRESENTATION 16

-5%

-4%

one-off effect

Comparable operating profit on PY-level despite lower revenue

• Lower revenue due to minor tariff reduction

• Further efficiency gains

• PY: one-off reimbursement for transfer of transmission grid to Swissgrid (CHF 11m)

Key pointsCHF m

200 190

555

2017 2018 2017 2018


11

58011

| BKW |

Revenue breakdown

Services: profitable growth with margin increase19.03.2019ANNUAL RESULTS 2018 INVESTOR PRESENTATION 17

+20%

46

+26%

736

881

Engineering

Building Solutions

Infra Services

Energy Services

Expansion on track with margin increase

• Sales above CHF 0.8bn, up by 20%

• 18 acquisitions in 2018 (Engineering and Building Solutions)

• Continued improvement of EBIT-margin from 6% to 7%

Key points

58

CHF m

2017 2018 2017 2018



DividendsShare price

0

10'000

20'000

30'000

40'000

50'000

25

35

45

55

65

75

Daily trading volume SIXPay out ratio

CHF Volume in pcs. CHF Dividend per share Pay out ratio

Target zone pay out ratio

1.00

1.20 1.20

1.60 1.60 1.60

1.80 1.80

20%

30%

40%

50%

60%

70%

80%

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

2.20

2011 2012 2013 2014 2015 2016 2017 2018

Annual total shareholder return of 23% since implementation of strategy

BKW

SPI

Share price and dividends

Outlook and strategy update


BKW expects to successfully continue its transformation

2019 is the last year influenced by negative energy price effects.

BKW intends to compensate these negative effects through:

• further profitable growth of the Services business

• repositioning of the Energy business – aligned to changing market drivers

• efficiency gains

BKW expects FY 2019 operating profit to be in the range of CHF 320 to 340m


BKW competencies for growing markets

Resource efficiency for urban living and infrastructures

Flexibility for decentralisedenergy systems

Renewables and infrastructures for an energy hungry world

Megatrends drive growing markets


Renewables & infrastructuresfor an energyhungry world


Strong renewables portfolio

Growing in wind and small hydroDiversified wind in terms of

regulation and weather impact

100

200

300

400

500

600

700

800

Inst

alle

dca

paci

tyin

MW

Small hydroWind


BKW's flexible power plants increase value creation

Price trend favours flexibilityHigh share of flexible energy production

Capacity installed and under construction: 3.2 GW

60%

Jan Dec

Elec

tric

ity

pric

e

Today

2030


22'000 kmLargest distributiongrid in Switzerland

CHF 1,900,000,000Regulatory Asset Base

36.4 %Largest shareholderof Swissgrid

3.8 %WACC / ROCE regulated

CHF 120,000,000Maintenance/replacement per year

Grid infrastructure – BKW's robust anchor


Mühleberg decommissioning: major project risks mitigated

Positive financial effect in 2020 Project plan on time

20 June 18DETEC issues

decommissioning order

(«Stilllegungsverfügung»)

End 18All long term item

contracts closed

6 September 18No official complaints, decomissioning

request legally binding

20 December 19Final shutdown of

power operation KKM


Flexibility for decentralised

energy systems


Optimised communicationstechnology for smart meterdeployment

Grid technology for decentralised energy systems

Flexibility for BKW's and third party grids

Big data technology forgrid and geoinfo systems


Trading competence generates value from volatile markets

Trading services increase tradeable portfolio

Inflexible assets made flexible

Increasing focus on short-term trading

Own Assets

ManagedAssets


Resource efficiency for

urban living and infrastructures


Services network meets society's needs

Smart infrastructuresIntelligent urban planningInnovative building solutions


Network approach: driving further margin growth

Competencies forcomplex projects

Synergies withshared services

Locally anchored =trusted client relations

| BKW |

BKW strong business model: growth and robustness

Attractive growth in services business

Growing markets and good margins

Aligning energy tochanging markets

Significant upside potential

Grid – robust anchor forthe group

Regulated, stable income


Strength

Capital

Revenue / EBIT trend

Thank you foryour attention

Questions?

| BKW |

Financial calendar and contact information


Financial calendar

– Annual general meeting: 24 May 2019

– Ex-dividend date: 28 May 2019

– Dividend payment: 31 May 2019

– Publication of 2019 half-year results: 3 September 2019

For further information, please contact:

Thomas Herren, Investor Relations Officer

Tel (+41) 58 477 53 56

[email protected]

| 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.

strong annual results 2018 - bkw energie · annual results 2018 investor presentation19.03.2019 37...

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