Bkw Ag · SIX:BKW
Bkw — Investor Day (October 2021)
29 slides from Bkw's investor day presentation, Oct 29, 2021
Slide 1: BKW's strategy
| B KW | BKW's strategy Dr. Suzanne Thoma CEO
Slide 2: Balancing prosperity and the environment: integrated and trend-setting solutions from BKW
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 2 Balancing prosperity and the environment: integrated and trend-setting solutions from BKW Our markets: - Energy - Infrastructure - Buildings
Slide 3: Strategic foundation for growth created
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 3 Strategic foundation for growth created EBIT [CHF million] Hedged price [CHF/MWh] 433 436 60 368 364 347 346 324 317 309 239 225 20 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 1HJ21 Impairments KKM exit “3-pillar Financial Risk Growth CHF 1 bill
Slide 4: Strong megatrends driving growth at BKW
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 4 Strong megatrends driving growth at BKW Urbanization Technologization Climate change - Growth of metropolitan areas - Increased use of technology - Political roadmap - High demand for new builds and - Digitalization of buildings - Sustainability repla
Slide 5: Electricity is a growth market
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 5 Electricity is a growth market By 2030: +15% +160% +25% Electricity usage New renewables Flexibilities 3,300 TWh (2019) 580 TWh (2019) 360 GW (2019) BKW in growing target markets BKW in growing target markets Note: ENTSO-E Europe market region
Slide 6: BKW earns money with electricity (again)
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 6 BKW earns money with electricity (again) Trend since 2019: Hedged electricity prices: - Major increase in electricity prices Today - Positive revenue effect on BKW 25 13 14 15 16 17 18 19 20 21 22 23 24 20 20 20 20 20 20 20 20 20 20 20 20 20 Base load
Slide 7: Attractive growth perspectives in Engineering
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 7 Attractive growth perspectives in Engineering Region DACH Growing target market – trend 2026 CHF 100 billion Focus on attractive segments, e.g. green building High fragmentation – consolidation opportunity Players Top 3 share BKW 1,000 1% #1 BKW in gr
Slide 8: Attractive growth perspectives in Building Solutions
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 8 Attractive growth perspectives in Building Solutions Region CH Growing target market – trend 2026 CHF 45 billion Focus on attractive segments, e.g. Building automation High fragmentation – consolidation opportunity Players Top 3 share BKW 10,000 10% #
Slide 9: Attractive growth perspectives in Infra Services
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 9 Attractive growth perspectives in Infra Services Region DACH Growing target market – trend 2026 CHF 9 billion Focus on attractive segments, e.g. High-voltage grid expansion High fragmentation – consolidation opportunity Players Top 3 share BKW 500 20%
Slide 10: Strategic perspectives 2026
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 10 Strategic perspectives 2026 Energy Services Power Grid Growth Growth Stability - Expand new renewables - Focus on attractive target - Enable energy system of - Flexibility as a business model markets the future - Capitalize on electricity price - Cus
Slide 11: BKW in outstanding position for growth
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 11 BKW in outstanding position for growth Leader in key markets Integrated expertise Implementation strength #2 New renewables CH Power production: All key technologies +70% Renewables since 2013 1 #1-2 Services Building technologies 1.5 Revenue 2020 Se
Slide 12: Our ambition 2026
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 12 Our ambition 2026 EBIT: CHF 700 million Revenue: CHF 4.5 - 5.0 billion Energy: EBIT CHF 400 million Services: EBIT CHF 200 million Grid: EBIT CHF 150 million
Slide 13: Sustainability a key element of BKW's strategy
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 13 Sustainability a key element of BKW’s strategy - BKW joins UN Global Compact - Contribution to 10 development goals - Initial ESG reporting for 2021 - BKW’s services core to sustainability
Slide 14: BKW fit for the future
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 14 BKW fit for the future BKW - a growth platform Energy and Services engines of growth Stability and resilience through Grid Ambition defined: EBIT 2026 CHF 700 million Growth with operational excellence and controlled risk
Slide 15: Strategy 2026: Financials
Strategy 2026: Financials Ronald Trächsel CFO C A P I TA L M A R K E T S DAY, 2 9. 1 0 . 2 0 2 1
Slide 16: Growth strategy delivers substantial EBIT plus
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 16 Growth strategy delivers substantial EBIT plus BKW Growth Strategy CHF m EBIT Energy Services Grid +60% >700 436 Strong growth Strong growth Stability Growth with limited risk exposure 2020 2026 Significant growth driven by Services and Energy busine
Slide 17: BKW financial risk framework ensures growth with limited downside risk
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 17 BKW financial risk framework ensures growth with limited downside risk BKW risk framework ensures A-rating Energy Services Grid Growth potential: high Growth potential: high Growth potential: low Financial risk: high Financial risk: low Financial ris
Slide 18: BU Energy: Significant growth
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 18 BU Energy: Significant growth CHF m Revenue CHF m EBIT Growth drivers Increasing power Renewables growth +30% demand above market >1,500 1,175 Substantial +90% Increasing investment in >400 power prices renewable capacities 218 Enhance smart Enhance
Slide 19: BU Energy: Positive impact from increasing power prices
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 19 BU Energy: Positive impact from increasing power prices EUR m Power price development* CHF m EBIT growth due to price increase 90 60 +60% >350 30 218 - 14 15 16 17 18 19 20 21 22 23 24 25 2020 2026 20 20 20 20 20 20 20 20 20 20 20 20 1. 1. 1. 1. 1. 1
Slide 20: BU Energy: Investments in regulated or contracted new renewables
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 20 BU Energy: Investments in regulated or contracted new renewables Generation volume Investments Capital light investments in renewables TWh CHF m +40% 2.5 400 1.8 Acquisition of projects Downfarming Operation 50% 100% 51% 51% Capital light 2020 2026 B
Slide 21: BU Energy: Increasing market for PPA and flexibility
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 21 BU Energy: Increasing market for PPA and flexibility PPA Power Purchase Agreements Increasing value of flexibility Producers Consumers Flex producer Flex off-taker Buy Sell BKW Own assets - Grid Energy markets - Consumer Flexibility hub Third-party a
Slide 22: BU Grid: Stable EBIT provider and cash generator
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 22 BU Grid: Stable EBIT provider and cash generator CHF m Revenue CHF m EBIT Stable business Regulated WACC Reliable cash at 3.8% generation Enhance grid 528* >500 Optimize management investments capacities 174* >150 2020 2026 2020 2026 * Without one-of
Slide 23: BU Services: Uniquely positioned as integrated service provider
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 23 BU Services: Uniquely positioned as integrated service provider CHF m Sales CHF m EBIT Growth drivers Margins Megatrends: +90% 6% 8% Urbanization, Technologization, >2,800 Climate change +150% Market trend towards >200 1,466 complex projects 84 Netwo
Slide 24: BU Services: Sales breakdown
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 24 BU Services: Sales breakdown CHF m Sales Strong growth 2,800 Organic growth 4% p.a. +90% à above market 1,466 BKW Infra Services 400 +100% Acquisitions BKW Building Solutions 700 +80% Competence network promotes 400 BKW Engineering topline growth 202
Slide 25: BKW Group: 60% EBIT increase
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 25 BKW Group: 60% EBIT increase CHFmm CHF EBIT Key points >700 Strong growth in Energy and Services 436 +110% Services 84 +0% 174 Grid Stable Grid development Energy +90% 218 2020 2026 ROCE improvement 7% à 9% 7% ROCE 9% BKW strategy delivers 60% rise i
Slide 26: Planned investments next five years
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 26 Planned investments next five years CHF m Investments CHF m Growth Growth Maintenance/ Services 800 replacement Energy 1,800 CHF m Maintenance/replacement Services Energy 1,000 Grid Other Significant growth investments in renewable energies and Servi
Slide 27: Strong and stable cash generation
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 27 Strong and stable cash generation CHF m Operating Cashflow* CHF m Net Debt CHF m Financial Debt 800 Bonds CHF 3bn 700 2019 2020 2021 2022 2023 2024 2025 2026 1200 Registered bonds 0 Green bond 600 Expected range 1000 500 -100 800 400 -200 662 600 300
Slide 28: Strategy 2026: Key financials
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 28 Strategy 2026: Key financials BKW growth strategy Revenue EBIT Cash Generation Investments Net debt 2022-2026 2022-2026 CHF 4.5-5bn CHF 700m CHF 3bn CHF 1.8bn CHF 0.2bn +50% +60% -60% Increase of enterprise value; sustainable dividend payments
Slide 29: Disclaimer
CAPI TAL MARKETS D AY 2021 | B KW | 29.10.2021 29 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 m