investor presentation, september 5th 2017€¦ · · 2018-02-09net profit from continuing...
TRANSCRIPT
| 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%
171
HY 2016 HY 2017 HY 2016 HY 2017
Operating revenue Operating profit
CHF m +9%
+6%
182
1,190
1,298
CHF m
05.09.20172017 HALF-YEAR RESULTS 2
| BKW |
Income statement
05.09.20172017 HALF-YEAR RESULTS 4
CHF m HY 2016 HY 2017 change in %
Operating revenue 1,190 1,298 +9%
Energy procurement/transport -473 -515
Operating costs -454 -527
EBITDA 263 256 -3%
Depreciation, amortization and impairment -91 -96
Income from associates -1 22
EBIT 171 182 +6%
Financial result -18 -20
Income taxes -29 -44
Net profit from continuing operations 124 118 -5%
Net profit from discontinued operations 0 -2
Net profit 124 116 -6%
| BKW |
Operating EBIT +6%05.09.20172017 HALF-YEAR RESULTS 5
Successful operating performance in all business areas
HY 2016 Energy Grid Services other HY 2017
CHF m
+6%14
4
182
-8
171
1
| BKW |
Half-year EBIT history (comparable)
05.09.20172017 HALF-YEAR RESULTS 6
Consecutive EBIT-increase despite adverse business environment
142156
141 141 138
171182
0
100
200
HY 2011 HY 2012 HY 2013 HY 2014 HY 2015 HY 2016 HY 2017
CHF m
60 EUR/MWh
30 EUR/MWh
Market priceof electricity
| BKW |
EBIT development / price effect on operating revenue
05.09.20172017 HALF-YEAR RESULTS 7
Negative price effect of CHF 600m since 2014
239
324 317347
309
346
182
0
100
200
300
400
500
2011 2012 2013 2014 2015 2016 HY 2017
CHF m
60 EUR/MWh
30 EUR/MWh
Market priceof electricity240 150140
- CHF 600m
price effect on operating revenue
70
182
| BKW |
Operating cost reduction in organic business
05.09.20172017 HALF-YEAR RESULTS 8
Continuous and consistent cost management in organic business
846
-41
820 953
+114
HY 2016 cost reduction HY 2017organic
acquisitions HY 2017 reported
413
454
527
CHF m
| BKW |
Investments to support strategy
905.09.20172017 HALF-YEAR RESULTS
Investments
63% in growth CHF 143m
thereof
- Services CHF 114m
- Energy (wind & small hydro) CHF 29m
37% in maintenance/replacement CHF 85m thereof
- Grid CHF 64m
- Energy CHF 10m
- Other CHF 11m
CHF 228m
Energy
Services
Grid
EnergyOther
Around 2/3 of investments in growth - in line with strategy and long-term capex plan
Partner plants CHF 30m
| BKW |
Funds from operations at CHF 223m
05.09.20172017 HALF-YEAR RESULTS 10
Consecutive strong cash inflows: record high over five-year period
175 181
215
191
223
0
100
200
HY 2013 HY 2014 HY 2015 HY 2016 HY 2017
CHF m
| BKW |
Liquidity at CHF 1.2bn 05.09.20172017 HALF-YEAR RESULTS 11
Liquidity at strong CHF 1,2bn despite significant investment activities
CHF m
1248 1181
+217+12-191
-87-18
Operatingactivities
Investing activities Financing activities
| BKW | 05.09.20172017 HALF-YEAR RESULTS 12
1,3941,248 1,181
-1,686 -1,687-1,602
-292-439 -421
-2000
-1500
-1000
-500
0
500
1000
1500
FY 2015 FY 2016 HY 2017CHF m
Cash & equivalents & current financialassets
Financial debt
Net financial debt
Sound financial situation: net debt reduced
Net debt level further reduced as a result of strong operating cash flow
| BKW |
Maturity profile of financing05.09.20172017 HALF-YEAR RESULTS 13
Long-term financing framework ensures financial flexibility
Convertible bond
Bonds
Registered bonds
CHF bn2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
CHF 150m
CHF 350m
CHF 36m
CHF 200m
EUR 40m
CHF 300m
EUR 85m
EUR 150m
| BKW |
Sound balance sheet: equity ratio at 35.9%
05.09.20172017 HALF-YEAR RESULTS 14
FY 2016 HY 2017
5,6
3,0
2,4
6,2
CHF bn34.3%
8,6
Non-current assets
Current assets
EquityLiabilitiesEquity ratio
Increased equity ratio as a result of strong net profit and conversion of treasury shares
2,3
6,4
5,6
3,1
35.9%
8,7
| BKW |
Share price development and shareholder structure
05.09.20172017 HALF-YEAR RESULTS 15
Performance HY 2017: +14%, free float at 37.5% (incl. convertible bond BKW)
52.5%
10.0%
1.8%
35.7%
Canton of Berne
Groupe E Ltd.
Treasury shares (convertible bond)
Free float
37.5%
CHF
BKW
SPI
+48% Free float
30
33
36
39
42
45
48
51
54
57
60
31.12.2015 31.03.2016 30.06.2016 30.09.2016 31.12.2016 31.03.2017 30.06.2017
| BKW |
Convertible bond
05.09.20172017 HALF-YEAR RESULTS 16
Significant conversions: 79%
0
2000
4000
6000
8000
10000
12000
14000
100
110
120
130
140
150
160
04.01.2016 27.05.2016 17.10.2016 07.03.2017
BKW convertible bond (2020)
Principal amount CHF 163.4m
Underlying number of shares 4'199'964
Issue price 100
Conversion price 37.81 CHF
Conversions so far (nom.) 127.0 MCHF
Converted shares so far 3,344,921 79%
Treasury shares stake July 2017 1.8%
CHF CHF t
BKW convertible bondConversions
| BKW |
Operating revenue and EBIT per business area05.09.20172017 HALF-YEAR RESULTS 17
All business areas with higher EBIT
HY16 HY17 HY16 HY17 HY16 HY17 HY16 HY17 HY16 HY17 HY16 HY17
Energy Grid Services
CHF m
692
+37%
-4%
+16%666
8180
11197
15
Operating revenueOperating profit
11
+1%
+14%
+40%
296
343
242
332
| BKW |
Energy: full compensation of negative price effects
05.09.20172017 HALF-YEAR RESULTS 18
HY 2016 HY 2017 HY 2016 HY 2017
Operating revenue Operating profit
CHF m
-4%
666
– Negative price effect on revenue: ~CHF -70m
– Offset on EBIT-level by
Management of energy position (trading)
Further reduction of operating costs
Acquisition of AEK and development of power plants (wind, small hydro)
Negative price effects fully compensated on EBIT level
8180
+1%
692
| BKW |
Grid: EBIT-contribution further increased
05.09.20172017 HALF-YEAR RESULTS 19
11197
CHF m
+14%
+16%
– Revenue higher:
- Acquisition of AEK
- Compensation payment in relationto transfer of transmission grid
– Operating profit higher:
- Acquisition of AEK
- Reduction of operating costs
- Increased Swissgrid stake
– PY: One-time revaluation gain of CHF 11m relating to AEK acquisition
EBIT-contribution increased in line with expectations
HY 2016 HY 2017 HY 2016 HY 2017
Operating revenue Operating profit
342
296
| BKW |
Services: growth leads to strong EBIT-increase
05.09.20172017 HALF-YEAR RESULTS 20
15
CHF m
+37% – Strong growth of revenue, up by 37%
– 10 acquisitions in HY 2017
– Stable EBIT-margin despite high acquisition activities
– Due to seasonality, stronger development in 2nd HY expected
Expansion on track: strong growth
11
+40%
HY 2016 HY 2017 HY 2016 HY 2017
Operating revenue Operating profit
332
242
| BKW |
Outlook FY 2017 confirmed
BKW expects FY17 comparable operating profit to be on FY16 levels
– profitable growth of services business
– active management of energy position
– consistent cost management
05.09.20172017 HALF-YEAR RESULTS 22
| BKW |
2012 2013 2014 2015 2016 2017
Market environment
05.09.20172017 HALF-YEAR RESULTS 23
Classical energy business under heavy pressure – BKW responds with its forward strategy
Market priceof electricity
60 EUR/MWh
30 EUR/MWh
International factors:
- Subsidies for renewable energies
- Low commodity and CO2 prices
- Economic policy
| BKW |
Shaping the future of energy – straightforward, reliable and integrated
05.09.20172017 HALF-YEAR RESULTS 24
A robust business model: growth, risk diversification and sustainability
Existing competencies as platform for growth- Grow services- Grow regulated income
Keep recovery potential in energy
| BKW |
BKW pursues its strategy consequently – despite localcontroversies
05.09.20172017 HALF-YEAR RESULTS 25
BKW strategy not influenced by local controversies and politics
BKW is a listed company
Economic freedom is independentfrom shareholder structure
Economic freedom also applies tostate-owned and partly state-owned companies
Competition is permitted, commonand also welcome!
| BKW |
Infrastructure services: a natural evolution05.09.20172017 HALF-YEAR RESULTS 26
BKW delivers integrated solutions for customers
Engineering & constrution ofproduction facilities
Engineering & construction ofgrid infrastructure
Engineering & installation ofinfrastructures
| BKW |
Services: business rationale 05.09.20172017 HALF-YEAR RESULTS 27
Core of BKW's services strategy: growth in adjacent fields
Building technologies
Engineering
Grid infrastructure
Experienced in power plant engineering
Strong track record in electricity grid infrastructure
Proven competence in electro installation
Industry-, infrastructure- andenvironment-planning andconsulting services
Multi-utility infrastructureservices: electricity, telecom, transportation, water
Comprehensive technicalservices for buildings
| BKW |
~50%almost half of all energy in Switzerland
is consumed in buildings
Significant market
05.09.20172017 HALF-YEAR RESULTS 28
Building technologies: buildings are in the center of an intelligent, integrated energy supply system
Synergies and new market opportunities result from increasing complexity of new technologies
Effizienzsteigerung
BKW providesintegrated services
| BKW |
Building technologies: regional structure05.09.20172017 HALF-YEAR RESULTS 29
Regional structure combines wide range of services
Implemented backbone formanagement and supportprocesses ensuresefficiency
Strong local focus
Powerful company network: regional and nationwide
EastCentralWest
BKW building technologies
| BKW |
Grid infrastructure: specified multi-utility services05.09.20172017 HALF-YEAR RESULTS 30
east
electricity, telecom, transportation
west
Arnold
water
Arnold AG: backbone withstrong track record
Nationwide presence: efficient regional organization
Water infrastructure: acquisitions lead to broadexpansion of services
central
Multi-utility services lead by Arnold Group
| BKW |
Engineering: acquired Groups as basis for further growth05.09.20172017 HALF-YEAR RESULTS 31
Combined know-how in energy, infrastructure, environment and survey
Current managementprocess via large Group companies
Target structure beingimplemented: backbonewith strong network in D-A-CH region
Optimization of knowledgeand utilization
| BKW |
Services business areas: what we do05.09.20172017 HALF-YEAR RESULTS 32
planning & consulting
installation
maintenance
decommissioning
Building technologiesEngineering Grid infrastructure
HVAC, electroinstallations
infrastructure, electricity and environment
electricity, transport, telecom, water
Services for infrastructure life-cycle!
| BKW |
1. Services cover whole life-cycle of infrastructure
2. Integrated solutions for changing customer needs
3. Development of further expertise based on traditional competencies
Services business strategy05.09.20172017 HALF-YEAR RESULTS 33
BKW delivers integrated solutions for customers
Building technologiesEngineering Grid infrastructure
| BKW |
BKW strategy shaped to create value05.09.20172017 HALF-YEAR RESULTS 34
BKW business model geared toward growth: robust, profitable and sustainable
Existing competencies as platform for growth- Grow services- Grow regulated income
Keep recovery potential in energy
| BKW |
Financial calendar and contact information
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) 58 477 53 56
05.09.20172017 HALF-YEAR RESULTS 36
| BKW |
Disclaimer
This presentation contains forward-looking statements which are made on the basis of current expectations and assumptions. Theseforward-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 andeconomic 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.
05.09.20172017 HALF-YEAR RESULTS 37