Future opportunities of a former traditional electricity company. Thomas Bucher, CFO & Member of the Executive Board Alpiq Holding AG,

Transcription

1 Future opportunities of a former traditional electricity company Thomas Bucher, CFO & Member of the Executive Board Alpiq Holding AG,

2 Agenda 1. Financial results Transformation of the Group 3. Energy sector of tomorrow 4. Questions and answers 2

3 Demanding environment 1 International factors result in low wholesale prices Low commodity and CO 2 prices Subsidies for new renewable energies Moderate economic growth Production overcapacities Hedging period: Jan 2012 Dec EUR/MWh Cal-16: Avg. obtained hedging prices of EUR 47/MWh 30 Jan.2012 Jul.2012 Jan.2013 Jul.2013 Jan.2014 Jul.2014 Jan.2015 Jul.2015 Cal-16 CH Base Cal-16 CH Peak Pressure on Swiss hydropower and nuclear power plants 3

4 Demanding environment 2 Regulatory framework conditions distort the Swiss market Pressure on electricity producers without end customers and distribution grid 4

5 2016 Key Financial Figures Net revenue EBITDA Net income Operating cash flow -9% -18% >100% -80% Net debt -34% CHF million 6,715 6, , FX effect FX effect FX effect Results of operations before exceptional items (EI) EBITDA of CHF 395 million; down CHF 85 million on previous year Cash flow from operating activities of CHF 94 million; cash-relevant effect in 2016 from the change of valuation method regarding entitlements from the Federal decommissioning and waste disposal funds of CHF -151 million in the previous year Net debt at CHF 856 million; decrease of CHF 443 million compared to the end of 2015, due to disposals Dec Dec

6 EBITDA development of the business divisions CHF million Generation Lower wholesale prices hedged at lower level Unscheduled downtime at Leibstadt nuclear power plant Cost management yielding positive effects International production achieved a profit CHF million Commerce & Trading Swiss and international optimisation up on the previous year Eastern and South-Eastern Europe down on the previous year No contribution from AVAG after disposal in July 2016 CHF million EBITDA 2015 before EI -7 Business development 1 FX effects EBITDA 2016 before EI Energy Services Increased order intake and order backlog Higher revenue compared to previous year Market remains competitive Targeted acquisitions in growth areas 6

7 Transformation of the Group Structural measures being implemented Opening up to 49 % of hydropower portfolio Is not completed Criteria for completion: - Price - Contractual conditions - Transaction security Streamlining the portfolio and cost management Disposal of AVAG, AEK, REC Sale of Swissgrid completed Cost management continued Creating structures for future growth Pooling profitable business divisions Open up growth areas to investors Alpiq retains control 7

8 Digital transformation isn't a threat or a risk for energy sector, but rather a leverage and a chance to enter in a new world! Source: Handelsblatt Jahrestagung Energiewirtschaft

9 The energy sector is undergoing a transformation Phase of market evolution Core elements Drivers Decentralization Volatile generation (wind, solar) will require system integration, via remote asset management: curtailment of load or generation, DRM/DSM Distributed generation at prosumer sites will lead to new business models for B2B and B2C segments Subsidies for renewable generation technology Political push towards liberalization Political shaping and shifting of balances between incumbent and new industries Decarbonization Power sector as a key driver for GHG emission needs to contribute significantly in reaching reduction targets Energy efficiency targets directly affect B2B and B2C endusers who require clean energy and smart solutions to reduce energy demand Public commitment to low- carbon society Political push towards energy efficiency and "green" power Digitization Advanced analytics define future industry leaders Central relevance of digital and social channels for customer interaction Unlocking of big potential in internal processes through digital New organizational and leadership challenges Changed customer behavior New market entrants and business models Improved data processing capabilities Sector compounding Blurring sector boundaries due to increasing electrification Sectors that are especially affected include electric power utilities, mobility providers, and heating companies Electrification across sectors Advancements in battery technology Emission regulations Implications Value pools will shift from traditional to new businesses Innovative energy players can drive new businesses need to stay ahead of the game, in finding future winning models Opportunities emerge for new partnerships, with adjacent or completely different industry sectors 9

10 The old energy world At a glance Commercial Buildings Power Plants Transmission & Distribution Network Industrials Clearly defined market roles Unilateral energy flows Only a few competitors Households 10

11 The new Energy World At a glance Variety of diversified market roles Two-way energy and data flows Many different competitors Power Plants Wind Farm with Energy Storages Wind Farm with Cogeneration Large Buildings with PV Homes with PV and Storages Utility / Community PV E-Mobility Industrial Areals with Micro-Ecosystems Homes with PV and Storages 11

12 The new Energy World Disrupting Market Development Merging markets Trends and customer expectation Disrupting value chains New outside competitors Renewables Energy Sources The old Utility Business Model New Technologies (PV, Batteries, EV, Smart Home etc.) 12

13 The new Energy World 5 main areas of changes 13 Source: Capgemini Consulting

14 The new Energy World Digital Economy in a nutshell Blue Whale - Huge, slow but persevering- (Few) traditional economy leaders Heavy footprint in single sector just launch the digital transformation Gigantic assets Digital White Sharks - At the top of the food chain - (Very few) digital economy leaders Wide, diverse product portfolio Coupling the traditional sectors with their digital expertise Digital Swordfish - Big, fast, rarely get eaten - (Few) big industry shaping players Deep, vertical specific product Already near peak growth Digital Piranhas - Small but aggressive for prey - (Many) product specific players Huge, product centric competition Peak growth not yet reached Source: Alpiq / Statista 14

15 Transformation of the Group Investors gain access to an attractive portfolio Industrial Engineering Competent partner for industrial customers in Europe Building Technology & Design Focus on smart buildings and mobility Digital & Commerce New opportunities thanks to digitalisation 15

16 Transformation of the Group Alpiq is creating structures for future growth Financial Investors Alpiq Holding AG Strategic Investors Strategic Investors Strategic Investors 100% >51% >51% >51% Generation Switzerland Digital & Commerce Industrial Engineering Building Technology & Design 16

17 You ask. We answer.