Bkw Ag · SIX:BKW
Bkw — FY2023 Earnings Presentation
31 slides from Bkw's earnings presentation, Mar 12, 2024
Slide 1: BKW continues its growth trajectory with strong result
Analyst and Media Conference FY 2023 Zurich, 12.03.2024 BKW continues its growth trajectory with strong result
Slide 2: Agenda
Agenda 1 Review FY 2023 CEO Robert Itschner Financials FY 2023 2 CFO Martin Zwyssig 3 Strategy and outlook CEO Robert Itschner 4 Q&A
Slide 3: BKW posts strong FY 2023 result
Analyst and Media Conference FY 2023 12.03.2024 3 BKW posts strong FY 2023 result Revenue EBIT Operating net profit CHF 4,598 m CHF 620 m CHF 432 m
Slide 4: BKW on long-term growth trajectory
Analyst and Media Conference FY 2023 12.03.2024 4 BKW on long-term growth trajectory EBIT in CHF m 1,039 620 433 436 395 2019 2020 2021 2022 2023
Slide 5: Focus on proven three-pillar strategy
Analyst and Media Conference FY 2023 12.03.2024 5 Focus on proven three-pillar strategy allows growth along the entire energy value chain Energy Grid Services
Slide 6: Energy: Continuous growth in energy production and trading
Analyst and Media Conference FY 2023 12.03.2024 6 Energy: Continuous growth in energy production and trading − Strong momentum for the expansion of renewables in Switzerland Positive decision on the Trift concession, building permit received for Tramelan, strong pipeline for ground-mounted solar ins
Slide 7: Grid: Stable contribution to EBIT
Analyst and Media Conference FY 2023 12.03.2024 7 Grid: Stable contribution to EBIT − Security of supply 99.996% availability of BKW grid − Integration of renewable production into grid Over 23,500 PV systems with 500 MW connected to BKW grid (+50% from 2022 to 2023) − Substantial investments, gener
Slide 8: Services: Strong order backlog, launch of two-year program
Analyst and Media Conference FY 2023 12.03.2024 8 Services: Strong order backlog, launch of two-year program to improve profitability − Strong order backlog Project volume of EUR 330 m to upgrade electrical infrastructure in Germany and of CHF 218 m in the public sector − Ongoing portfolio optimizat
Slide 9: ESG: Important progress in sustainability
Analyst and Media Conference FY 2023 12.03.2024 9 ESG: Important progress in sustainability − Environment Targets set: Net Zero 2040 for energy business; 100% electrification of vehicle fleet by 2030 − Social Signing of the SUVA Charter for occupational safety, launch of diversity and inclusion comm
Slide 10: Financials FY 2023
Financials FY 2023
Slide 11: Successful FY 2023 after extraordinary FY 2022
Analyst and Media Conference FY 2023 12.03.2024 11 Successful FY 2023 after extraordinary FY 2022 CHF m 2022 2023 Delta Delta % Revenue Lower energy prices Revenue 5,199 4,598 -601 -12% EBIT Extraordinary portfolio management and trading EBITDA 1,247 953 -294 -24% result in previous year; EBITDA in
Slide 12: Calming down of the energy markets crucial for overall performance and EBIT
Analyst and Media Conference FY 2023 12.03.2024 12 Calming down of the energy markets crucial for the development of overall performance and EBIT CHF m Revenue CHF m EBIT -601 (-12%) 5,199 -418 -714 (-40%) 4,598 1,039 +75 +15 +23 -354 +1 620 -93 +28 2022 Energy Grid Services Corp./Elim 2023 2022 Ene
Slide 13: Energy: Once again successful portfolio management and trading results
Analyst and Media Conference FY 2023 12.03.2024 13 Energy: Once again successful portfolio management and trading results CHF m Revenue / EBIT Key points In TWh Production mix Revenue 9.4 9.5 • Lower prices in wholesale market 9.1 1.3 1.2 • Supported by higher production 1.1 0.4 Gas volumes 1.1 1.0
Slide 14: Grid: Stable earnings contributions and higher investments
Analyst and Media Conference FY 2023 12.03.2024 14 Grid: Stable earnings contributions and higher investments in renewal and expansion CHF m Revenue / EBIT Key points +4% Revenue • Pass through of higher transmission grid tariffs from Swissgrid • Lower transmission volumes 517 540 EBIT • Lower trans
Slide 15: Services: Two-year program to strengthen profitability
Analyst and Media Conference FY 2023 12.03.2024 15 Services: Two-year program to strengthen profitability and efficiency for future growth CHF m Revenue / EBIT Key points Revenue split Revenue +4% • Growth in electro installation and IT • Small inorganical growth Infra Services • Delayed project awa
Slide 16: Investments covered by strong operating cash flow
Analyst and Media Conference FY 2023 12.03.2024 16 Investments covered by strong operating cash flow CHF m Operating CF CF from Investing Activities CF from Financing Activities -502 +704 -24 +79 -228 798 772 -70 -180 +195 Cash 2022 Operating Net Other Dividends / Dividends Reduction Asset- others C
Slide 17: Major investments in growth and energy transition
Analyst and Media Conference FY 2023 12.03.2024 17 Major investments in growth and energy transition CHF m Investment CHF m Growth CHF m Maintenance Services Corporate 3% Grid Maintenance 16% 14% 34% 15% Grid Corporate 53% 329 173 502 21% 66% Services Growth 67% 11% Energy Energy
Slide 18: Net debt again below CHF 1 bn
Analyst and Media Conference FY 2023 12.03.2024 18 Net debt again below CHF 1 bn Well-balanced maturity profile ensures financial flexibility CHF m Net debt CHF bn Maturity profile bonds Cash & cash equivalents Bonds Financial debt 1.6 Registered Bond Net financial debt 1.4 Green Bond 1.2 848 927 1.
Slide 19: Increase in equity ratio and normalization of balance sheet total
Analyst and Media Conference FY 2023 12.03.2024 19 Increase in equity ratio and normalization of balance sheet total CHF bn 11.9 11.9 11.0 11.0 3.9 2.8 7.5 6.0 Current assets Non-current assets Liabilities Equity 8.0 8.2 4.4 5.0 (37%) (46%) 2022 2023
Slide 20: Return on capital employed exceeds the capital costs
Analyst and Media Conference FY 2023 12.03.2024 20 Return on capital employed exceeds the capital costs Return on capital employed (ROCE) CHF CHFMrd. bn Marktkapitalisierung Market capitalization 15.1% 7.9 6.3 6.7 5.2 5.2 7.8% 8.1% 6.9% 5.8% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023
Slide 21: Proposed increase in regular dividend from CHF 2.80 to CHF 3.40
Analyst and Media Conference FY 2023 12.03.2024 21 Proposed increase in regular dividend from CHF 2.80 to CHF 3.40 in line with BKW’s dividend policy CHF Dividend per share Payout ratio 4.05 80% 1.00 1.25 70% with extraordinary extraordinary dividend dividend 60% 50% Target zone payout ratio 3.40 2.
Slide 22: Strategy and outlook
Strategy and outlook
Slide 23: BKW in attractive markets with high growth potential
Analyst and Media Conference FY 2023 12.03.2024 23 BKW in attractive markets with high growth potential Energy Grid Services Energy Grid Services +3,000 TWh +CHF 75 bn +CHF 20 bn market volume investments market volume in European energy production in Swiss distribution grids in DACH region by 2050
Slide 24: Energy: Expansion of renewables and growth in customer solutions
Analyst and Media Conference FY 2023 12.03.2024 24 Energy: Expansion of renewables and growth in customers solutions − Strengthening security of supply in Switzerland Over CHF 1 bn project pipeline in hydro, wind and solar − Expansion of renewable electricity production in Europe Focused development
Slide 25: Grid: Speeding up of grid expansion to implement energy transition
Analyst and Media Conference FY 2023 12.03.2024 25 Grid: Speeding up of grid expansion to implement energy transition − Continuous investments in energy transition in the grid Smart meter roll-out, grid reinforcements for renewables − Mitigating talent shortage Program launched to recruit specialist
Slide 26: Services: Focusing on profitability in attractive growth markets
Analyst and Media Conference FY 2023 12.03.2024 26 Services: Focusing on profitability in attractive growth markets − Completion of the two-year program to increase profitability Further strengthening of structures and operational excellence − Execution of the high order backlog of infrastructure pr
Slide 27: ESG: Further strengthening of ESG governance in the Group
Analyst and Media Conference FY 2023 12.03.2024 27 ESG: Further strengthening of ESG governance in the Group and preparation for new regulatory requirements − General Setting an ESG target for Group management, introduction of management structures, processes − Definition and systems of committed CO
Slide 28: Positive outlook for FY 2024
Positive outlook for FY 2024 BKW strongly positioned in attractive markets Focus along the entire energy value chain Production, distribution and energy efficiency in buildings, infrastructure and mobility Capital Markets Day On November 8, 2024 EBIT outlook for FY 2024 of CHF 650 to 750 m
Slide 29: Q&A
Analyst and Media Conference FY 2023 12.03.2024 29 Q&A
Slide 30: BKW Group Annual Report 2023
BKW GROUP Annual Report 2023 - J ‘ 4
Slide 31: Disclaimer
Analyst and Media Conference FY 2023 12.03.2024 31 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