Bkw Ag · SIX:BKW
Bkw — H1 2021 Earnings Presentation
27 slides from Bkw's earnings presentation, Sep 8, 2021
Slide 1: Successful BKW Continues its Growth Trajectory
Successful BKW Continues its Growth Trajectory H A LF - Y EA R A N A LY S T A N D M E D I A P R E S E N TATI O N 2 0 2 1 . S E P T EM B ER 8 , 2 0 2 1
Slide 2: HY 2021: BKW Grows Successfully
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 2 HY 2021: BKW Grows Successfully Revenue Strong prior-year figures exceeded yet again +8% Services: Profitable growth Energy: Rising energy prices EBIT +3% Grid: Reliable contribution BKW tops record result of 1st HY 2020
Slide 3: Financials HY 2021
Financials HY 2021
Slide 4: Revenue, EBIT and Net Profit
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 4 Revenue, EBIT and Net Profit CHF m +8% 1,655 1,530 +3% 225 +86% 219 209 112 HY 2020 HY 2021 HY 2020 HY 2021 HY 2020 HY 2021 Revenue EBIT Net profit Strong growth of revenue, EBIT above previous year’s record, net profit up 86%
Slide 5: Half-Year EBIT History (Comparable)
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 5 Half-Year EBIT History (Comparable) CHF m 300 250 200 225 207 219 150 171 171 171 138 100 50 0 HY 2015 HY 2016 HY 2017 HY 2018 HY 2019 HY 2020 HY 2021 Continuous EBIT increase since 2015 despite negative energy price effects until 2020
Slide 6: Revenue and EBIT by Business Area
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 6 Revenue and EBIT by Business Area CHF m Revenue EBIT +9% +9% 737 677 677 624 +1% 270 274 -19% 11 +11% 128 103 104 93 +59% 37 23 HY 2020 HY 2021 HY 2020 HY 2021 HY 2020 HY 2021 HY 2020 HY 2021 HY 2020 HY 2021 HY 2020 HY 2021 Energy Grid Servic
Slide 7: Return on Capital Employed (ROCE) by Business Area
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 08.09.2021 7 Return on Capital Employed (ROCE) by Business Area ROCE in % 15 Services 10 Energy BKW 5 Grid 0 0 2 4 6 8 Capital employed in CHF bn Services with highest ROCE
Slide 8: Investments HY 2021: Growth Path Continued
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 8 Investments HY 2021: Growth Path Continued CHF m Investments CHF m Growth Maintenance/ Growth replacement Services 106 Energy (6) 178 CHF m Maintenance/replacement (90) Grid Services 72 Energy (84) Other + Energy: investments by partner plant
Slide 9: Strong Cash Generation and Liquidity at CHF 0.9bn
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 9 Strong Cash Generation and Liquidity at CHF 0.9bn CHF m Funds from operations (FFO) CHF m Cashflow statement 400 Operating Investing Financing activities activities activities 300 128 -130 200 1,036 -171 293 266 853 223 244 100 192 194 0 HY 2
Slide 10: Sound Balance Sheet: Equity Ratio at 43.1%
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 10 Sound Balance Sheet: Equity Ratio at 43.1% 43.1% CHF bn 42.3% 9.4 9.8 2.4 5.6 2.2 5.5 7.5 7.2 Non-current assets Current assets 4.2 3.7 Equity Liabilities Equity ratio FY 2020 HY 2021 Strong net profit drives equity ratio
Slide 11: Energy: Up 9%
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 11 Energy: Up 9% CHF m Key Points +9% Revenue: • Positive year-on-year price effects 677 • Higher sales volumes 624 • Higher production volumes EBIT: • Trading result below PY record Production Mix (Volumes in TWh) -19% 128 104 HY 2021 4.4 HY 2
Slide 12: Grid: Solid Results
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 12 Grid: Solid Results CHF m Key Points Higher feed-through: • Weather conditions (colder temperatures) +1% • Consumption back on 274 pre-COVID-19 levels 270 One-off effects (Swissgrid related) +11% 93 103 HY 2020 HY 2021 HY 2020 HY 2021 Revenu
Slide 13: Services: Successful Growth
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 13 Services: Successful Growth CHF m Key Points Strong revenue increase +9% • organic growth above market 737 • acquisition activity back on 677 pre-COVID-19 level Strong margin improvement Revenue Breakdown +59% +14% +5% Engineering 37 Buildin
Slide 14: Share Price Increase; Market Cap Above CHF 5.5bn
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 14 Share Price Increase; Market Cap Above CHF 5.5bn Share Price Market Capitalization CHF Volume in pcs. CHF bn 120 100’000 7 BKW 90’000 100 80’000 6 70’000 5 80 60’000 SMCI 50’000 4 60 40’000 3 30’000 5.2 5.7 40 20’000 2 3.8 3.0 3.6 Daily trad
Slide 15: Outlook and Strategy Update
Outlook and Strategy Update
Slide 16: 2021 Outlook Confirmed
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 16 2021 Outlook Confirmed BKW expects 2021 operating profit in the range of CHF 420 to 440m Further profitable growth of the Services business Electricity price development Average trading result Large-scale overhaul KKL Half-year result confir
Slide 17: Agility and Resilience Create Value
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 17 Agility and Resilience Create Value Organizational structure refined More complex, high-margin Professionalization of support and strengthened projects services BKW’s network accelerates top line growth
Slide 18: Sustainability is Core to BKW's Strategy
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 18 Sustainability is Core to BKW’s Strategy BKW signed up to the UN Global Compact Contribution to 10 SDGs Initial ESG reporting for 2021 Knorr-Bremse development, Munich, ingenhoven architecs Sustainability drives BKW’s business
Slide 19: BKW is a Growth Company
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 19 BKW is a Growth Company Strong megatrends... Urbanization Increasing use of technology Climate change ... drive growth in BKW’s target markets: Energy Infrastructure Buildings
Slide 20: Services: Market Development Drives BKW Growth
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 20 Services: Market Development Drives BKW Growth Large and growing target markets Focus on attractive market segments Expansion of market- leading positions in fragmented markets Strandkai, Hamburg, Assmann Beraten + Planen BKW: Innovati
Slide 21: Energy: Electricity is a Growth Business
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 21 Energy: Electricity is a Growth Business E-mobility partnership with Zurich Versicherung Growth drivers: Flexibility, electricity price, renewables
Slide 22: Grid: Technologization and Optimized Resource Deployment
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 22 Grid: Technologization and Optimized Resource Deployment Preservation of asset value Ready for the energy system of the future Efficient operation and use of resources Reliable contributor but with return on capital below BKW requireme
Slide 23: Growth with Limited Downside
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 23 Growth with Limited Downside Result of 1st HY 2021 exceeds last year's record result, despite average trading result Energy benefits from rising electricity prices Profitable growth in services continued Grid contributes reliably to the robu
Slide 24: BKW is a Growth Company: Infrastructure, Buildings and Energy
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 09/08/2021 24 BKW is a Growth Company: Infrastructure, Buildings and Energy © Baldauf & Baldauf Fotografie Capital Markets Day on October 29, 2021
Slide 25: Thank you for your attention
ee ite ES ; EH le —_ hank you for your attention
Slide 26: Questions?
Questions?
Slide 27: Disclaimer
ANALYST AND MEDIA CONFERENCE HY 2021 | BKW | 08.09.2021 27 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