Bkw Ag · SIX:BKW
Bkw — Investor Presentation (March 2025)
58 slides from Bkw's investor presentation, March 2025
Slide 1: BKW Investor Presentation March 2025
Bern, March 2025 BKW Investor Presentation March 2025
Slide 2: Company intro
Company intro
Slide 3: BKW at a glance
BKW Investor Presentation March 2025 3 BKW at a glance − BKW transformed from a traditional Swiss electricity provider Key figures 2024 to an international energy and infrastructure company − SIX Swiss Exchange listed since 2003 Revenue CHF 4.8 bn (Opening @ 37.40 CHF with market capitalization of C
Slide 4: BKW Group
BKW Investor Presentation March 2025 4 BKW Group 12,100 employees Strong Swiss base with a focus on selected core regions in Europe Active in three attractive markets energy, infrastructure and buildings Portfolio covers the entire energy transition value chain
Slide 5: We cover the entire energy transition value chain
BKW Investor Presentation March 2025 5 We cover the entire energy transition value chain Our three business segments: Energy Solutions − Leading player in the European trading and customer solutions business − Third-largest electricity producer in Switzerland (9 TWh) Power Grid − Switzerland’s large
Slide 6: BKW business segments: Past performance and value drivers
BKW Investor Presentation March 2025 6 BKW business segments: Past performance and value drivers Energy Solutions Power Grid Infrastructure & Buildings EBIT: CHF 586 m EBIT: CHF 140 m EBIT: CHF 57 m Technology Capacities in MW Production in GWh Distribution grid Engineering Hydro 1,715 4,948 Headcou
Slide 7: Our organization
BKW Investor Presentation March 2025 7 Our organization Robert Itschner CEO Martin Schweikert* Manuela Wendland* Group Communications Human Resources & Public Affairs Martin Zwyssig Philipp Hänggi Stefan Sewckow Corinne Montandon Antonin Guez Martin Fecke Sven Behrend CFO Energy Production Energy Ma
Slide 8: Strategy BKW Solutions 2030
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Slide 9: Our “BKW Solutions 2030” strategy
BKW Investor Presentation March 2025 9 Our “BKW Solutions 2030” strategy We deliver solutions that… … address the changing needs of customers, investors and the public. … meet the dramatic increase in demand for energy and resource efficiency. … facilitate accelerated transformation of the energy sy
Slide 10: Our megatrends
BKW Investor Presentation March 2025 10 Our megatrends Changing needs Dramatic increase Accelerated transformation of customers, investors in demand for energy and of the energy system and the public resource efficiency
Slide 11: Megatrends in numbers
BKW Investor Presentation March 2025 11 Megatrends in numbers Transformation of the Stakeholder needs Energy and resource efficiency energy system Investors committed to responsible investing Investments in energy efficiency Investments in transformation of the energy system (number of UN PRI signat
Slide 12: Core elements of our “BKW Solutions 2030” strategy
BKW Investor Presentation March 2025 12 Core elements of our “BKW Solutions 2030” strategy We grow profitably and sustainably Growth Excellence Sustainability − Expand energy solutions and − Profitability before sales − Growth opportunities in energy, strengthen production portfolio growth infrastru
Slide 13: Growth: We realize CHF 1 bn EBIT by 2030
BKW Investor Presentation March 2025 13 Growth: We realize CHF 1 bn EBIT by 2030 Energy Solutions Power Grid Infrastructure & Buildings Push Growth Stable Growth Selective Growth − Significant expansion of tailored − Gradual increase in investments − Expansion of services in general energy solutions
Slide 14: Excellence: We focus on profitability and quality
BKW Investor Presentation March 2025 14 Excellence: We focus on profitability and quality Profitability Consistent focus on Active portfolio and before growth customer needs risk management − Growth only through profitability − Proximity to customers, tailored − Continuous portfolio assessment – app
Slide 15: Sustainability: We pursue four clearly defined strategic directions
BKW Investor Presentation March 2025 15 Sustainability: We pursue four clearly defined strategic directions Climate Energy Nature People We are committed to We invest in renewable We promote natural We create healthy and achieving net zero emissions and efficient energy ecosystems and biodiversity.
Slide 16: Climate: We are committed to achieving net zero emissions across the entire Group
BKW Investor Presentation March 2025 16 Climate: We are committed to achieving net zero emissions across the entire Group − Expansion of renewable energies − Electrification of the vehicle fleet − Assessment of accelerated coal phase-out Net zero 50% reduction emissions in CO2 intensity by 2040 Scop
Slide 17: Financial goals of our “BKW Solutions 2030” strategy
BKW Investor Presentation March 2025 17 Financial goals of our “BKW Solutions 2030” strategy EBIT Investments in 2030 Total 2025–2030 CHF 1 bn CHF 4 bn Operating cash flow Of which investments Total 2025–2030 in Switzerland CHF >5 bn CHF 2 bn
Slide 18: Group – Ambition: We will increase EBIT to CHF 1 bn by 2030
BKW Investor Presentation March 2025 18 Group – Ambition: We will increase EBIT to CHF 1 bn by 2030 and invest around CHF 4 bn Group EBIT1 Total Group investments in CHF m 2025–2030 in CHF bn 0.5 1’200 1,200 1,200 1,000 1’000 1,000 200 4.0 2.5 800 850 1.0 620 150 600 400 620 650 200 0 2023 2030 Ener
Slide 19: Overview business segments EBIT: We are growing across all business segments
BKW Investor Presentation March 2025 19 Overview business segments EBIT: We are growing across all business segments Energy Solutions Power Grid1 Infrastructure & Buildings EBIT in CHF m EBIT in CHF m EBIT in CHF m 800 650 535 550 250 150 200 110 -40 150 2023 2030 2023 2030 2023 2030 − Expansion of
Slide 20: EBIT ambition in comparison: 2022 and 2023 were exceptional years
BKW Investor Presentation March 2025 20 EBIT ambition in comparison: 2022 and 2023 were exceptional years Before the energy crisis Impact of the energy crisis Strategic horizon 1,400 1’400 300 Electricity price 1,200 1,200 1’200 250 market1 1,039 1,000 1,000 1’000 200 Electricity prices in CHF/MWh E
Slide 21: ROCE ambition 2030: A well-diversified portfolio
BKW Investor Presentation March 2025 21 ROCE ambition 2030: A well-diversified portfolio with regards to return on capital ROCE in % 15% Infrastructure & Buildings 10% Energy Solutions BKW 5% Power Grid 0% Capital Employed
Slide 22: Financing/Net debt: Balanced financing as the basis of our growth ambition
BKW Investor Presentation March 2025 22 Financing/Net debt: Balanced financing as the basis of our growth ambition Operating cash flow per year Net debt Maturity profile until 2030 in CHF m in CHF m in CHF m 2,200 1,000 927 704 37 300 -952 -800 200 200 200 -1,878 100 -3,000 2023 2030 2023 2030 2025
Slide 23: Dividend policy: We plan to continue our stable and attractive dividend policy
BKW Investor Presentation March 2025 23 Dividend policy: We plan to continue our stable and attractive dividend policy History Target range Dividend per share in CHF Payout of operating net profit in % 4.05 80% 1.25 60% extraordinary dividend 40% 35–50% 3.40 2.60 2.80 20% 2.20 2.40 0% 2019 2020 2021
Slide 24: Financial stability is ensured
BKW Investor Presentation March 2025 24 Financial stability is ensured Goals by 2030 8% Group ROCE A Maintain rating >50% Equity ratio
Slide 25: Results of the 2024 fiscal year
Results of the 2024 fiscal year
Slide 26: BKW’s performance in a nutshell
BKW Investor Presentation March 2025 26 BKW’s performance in a nutshell CHF m 2024 2023 Δ Δ% Revenue • Lower energy price level in Energy Solutions outweighed mainly by higher Revenue 4,772 4,598 +175 +3.8% Swissgrid tariffs in Power Grid and organic growth in I&B EBITDA 1,073 953 +120 +12.6% EBIT E
Slide 27: All business segments contribute to the increase in EBIT
BKW Investor Presentation March 2025 27 All business segments contribute to the increase in EBIT CHF m Revenue CHF m EBIT +175 (+4%) 4,772 -21 +135 +170 4,598 (+27%) +133 790 -73 -10 +97 +31 620 +52 2023 Energy Power I&B Corporate & 2024 2023 Energy Power I&B Corporate & 2024 Solutions Grid Elim. So
Slide 28: Energy Solutions: Strong performance supported by favorable factors
BKW Investor Presentation March 2025 28 Energy Solutions: Strong performance supported by favorable factors CHF m Revenue / EBIT Key points In TWh Production mix Revenue +11% -3% • Continuing trend to lower energy price levels 10.6 • Higher production volumes in hydro 9.5 1.1 and nuclear 0.5 1.2 0.4
Slide 29: Energy Solutions: Favorable factors in 2024
BKW Investor Presentation March 2025 29 Energy Solutions: Favorable factors in 2024 Power price volatility In TWh Hydro production % KKL-STENFO performance Power price Germany 3 years forward Yearly high, low and average 4.9 Target return 2.1 % 400 4.1 Actual return 3.9 4.0 3.3 12% 300 9% 7% 200 4%
Slide 30: Power Grid: Steady performer with solid results
BKW Investor Presentation March 2025 30 Power Grid: Steady performer with solid results CHF m Revenue / EBIT Key points +25% Revenue • Pass through of higher Swissgrid transmission grid tariffs (no EBIT impact) • Tariff increase to recover costs that occurred in previous years EBIT • Tariff increase
Slide 31: Infrastructure & Buildings: Back on track, EBIT margins significantly improved
BKW Investor Presentation March 2025 31 Infrastructure & Buildings: Back on track, EBIT margins significantly improved CHF m Revenue / EBIT Key points Revenue split +7% Revenue • Significant organic growth, primarily driven by the strong development of Infra Services Infra Services EBIT 27% • Effici
Slide 32: Free cashflow remains strong while investing for future growth
BKW Investor Presentation March 2025 32 Free cashflow remains strong while investing for future growth CHF m Operating CF Investing CF Financing CF Free cashflow CHF 438 m -104 -395 +843 +94 -146 -196 872 772 +5 Cash 2023 Operating Use of nuclear Investing Refunds Financing Dividend FX Cash 2024 act
Slide 33: Capital directed towards the energy transition
BKW Investor Presentation March 2025 33 Capital directed towards the energy transition: Focus on renewable energy and grid expansion CHF m Investments1 CHF m Investments by segments 213 Growth Maintenance 161 39% Maintenance 58 (191) 198 486 61% 71 Growth (294) 102 38 40 34 40 15 Energy Power Grid I
Slide 34: Higher liquidity strengthens net debt metrics
BKW Investor Presentation March 2025 34 Higher liquidity strengthens net debt metrics Robust financing strategy drives financial flexibility CHF m Net debt CHF m Maturity profile bonds Cash & cash equivalents Bonds Financial debt Green Bonds Net financial debt Registered Bonds 927 1,030 37 -952 -876
Slide 35: Further increase of equity in absolute and relative terms
BKW Investor Presentation March 2025 35 Further increase of equity in absolute and relative terms, supporting the future balance sheet extension CHF bn Balance sheet Key points 11.6 11.6 Current assets 11.0 11.0 Increase of cash & cash equivalents and Current assets inventories 3.1 Non-current asset
Slide 36: ROCE outperforms capital costs by far; improved Net Debt / EBITDA
BKW Investor Presentation March 2025 36 ROCE outperforms capital costs by far Further improved Net Debt / EBITDA ratio Return on Capital Employed1 (ROCE) CHF Mrd. Marktkapitalisierung Net Debt / EBITDA 15.1% 1.8 9.5% 1.0 7.8% 8.1% 1.0 0.7 0.8 5.8% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 1
Slide 37: Proposed 9% increase in regular dividend from CHF 3.40 to CHF 3.70
BKW Investor Presentation March 2025 37 Proposed 9% increase in regular dividend from CHF 3.40 to CHF 3.70 in line with dividend policy CHF Dividend per share CHF Earnings1 per share 4.05 1.25 extraordinary dividend 13.51 3.70 10.43 3.40 2.80 8.19 2.40 2.60 6.61 4.64 2020 2021 2022 2023 2024 2020 20
Slide 38: Outlook for the 2025 fiscal year
Outlook for the 2025 fiscal year
Slide 39: EBIT guidance 2025
BKW Investor Presentation March 2025 39 EBIT guidance 2025 Energy Solutions Further market normalization Power Grid Stable EBIT contributions Infrastructure & Buildings Continuing to increase profitability BKW expects EBIT in the range of CHF 650 to 750 m for the 2025 fiscal year.
Slide 40: Investor and contact information
Investor and contact information
Slide 41: Investor and contact Information
BKW Investor Presentation March 2025 41 Investor and contact Information Links Contact information Board of Directors & Executive Board Investor Relations +41 58 477 57 33 Investor.relations@bkw.ch ESG www.bkw.ch Information on shares and bonds
Slide 42: Back up / Additional information
Back up / Additional information
Slide 43: Business areas
Business areas
Slide 44: Energy Markets
BKW Investor Presentation March 2025 44 Energy Markets Development of standardized and structured energy solutions for customers Management of own and third-party assets Participation in wholesale markets with various commodities and products
Slide 45: Energy Production
BKW Investor Presentation March 2025 45 Energy Production Portfolio of around 100 power plants generating an average of 9–10 TWh of electricity per year, including 5 TWh in CH Planning, building, operating and maintaining production and storage facilities Providing other services: Technical & Commer
Slide 46: Power Grid
BKW Investor Presentation March 2025 46 Power Grid Switzerland’s largest distribution grid operator Operates 22,000 km of power grid Supplies over 1 m people & companies Ensures high grid availability: 99.997%
Slide 47: Engineering
BKW Investor Presentation March 2025 47 Engineering Over 90 locations in Germany 3,120 employees Largest provider of integrated architectural and engineering services in the DACH region with 4,000 employees Plans forward-looking, livable, climate-friendly infrastructures and buildings as a “Network
Slide 48: Infra Services
BKW Investor Presentation March 2025 48 Infra Services 11 locations in Germany 870 employees Comprehensive provider of infrastructure services in the areas of energy, mobility, communication and water Plans, installs, operates and services of critical infrastructures Provides solutions across the en
Slide 49: Building Solutions
BKW Investor Presentation March 2025 49 Building Solutions Solutions for new constructions, conversions and service – from residential to industrial projects Strong presence with 4,000 employees at 120 locations in Switzerland Leading building technology provider 120 in the areas of HVAC, electrotec
Slide 50: Production portfolio Hydro
Production portfolio Hydro
Slide 51: Power production portfolio shall be transformed into a greener and equally flexible portfolio
BKW Investor Presentation March 2025 51 Power production portfolio shall be transformed into a greener and equally flexible portfolio 7% 5% 10% 7% Gas Gas 4% 7% Coal H2-ready Gas Hydro flexible Hydro flexible Hydro inflexible Battery Wind Hydro inflexible 26% 32% 2023 Solar 2030E Wind 32% 3.4 GW Nuc
Slide 52: Hydro power plants (≥50% direct holding)
BKW Investor Presentation March 2025 52 Hydro power plants (≥50% direct holding) Aarberg Kraftwerk Augand AG Bannwil Bielersee Kraftwerke AG Wynau-Schwarzhäusern Capacity: 15.2 MW Capacity: 7.4 MW Capacity: 28.5 MW Capacity: 30.8 MW Capacity: 20.2 MW End of the concession: 2048 End of the concession
Slide 53: Hydro power plants (≥50% direct holding)
BKW Investor Presentation March 2025 53 Hydro power plants (≥50% direct holding) Isch Kraftwerk Sanetsch AG Kraftwerk Spiggebach AG Kraftwerke Kander Alp AG Kraftwerke Milibach AG Capacity: 1.5 MW Capacity: 18.0 MW Capacity: 2.9 MW Capacity: 2.6 MW Capacity: 1.5 MW End of the concession: 2041 End of
Slide 54: Hydro power plants (≥50% direct holding)
BKW Investor Presentation March 2025 54 Hydro power plants (≥50% direct holding) Schattenhalb 1 Schattenhalb 3 Simmentaler Kraftwerke AG Kraftwerk Turbach AG Société des forces électriques Capacity: 2.3 MW Capacity: 9.7 MW Capacity: 30.1 MW (under construction) de la Goule SA End of the concession:
Slide 55: Hedging Mechanism
Hedging Mechanism
Slide 56: Generic hedging mechanism of market price risk in the power market
BKW Investor Presentation March 2025 56 Generic hedging mechanism of market price risk in the power market During February / March of each year the planned production for which there is a) market risk and b) market liquidity is transferred from energy production to energy markets (trading). Generall
Slide 57: Restrictions to be considered for the hedging strategy
BKW Investor Presentation March 2025 57 Restrictions to be considered for the hedging strategy Possible restrictions Solution: Proxy-Hedge Remaining risks Country spread risk The Swiss forward power market is not E.g. Hedge the power production with The correlation of the power prices liquid enough
Slide 58: Disclaimer
BKW Investor Presentation March 2025 58 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