Presentation Annual Results Media Conference 2014 PDF

Annual Results Media Conference
Zurich, 5 March 2014
Agenda
1. Welcoming Address
2. Operative Performance
3. Financial Results
4. New Strategy
5. Q & A
Hans E. Schweickardt
Jasmin Staiblin
Patrick Mariller
Jasmin Staiblin
COB
CEO
CFO
CEO
Agenda
1. Welcoming Address
2. Operative Performance
3. Financial Results
4. New Strategy
5. Q & A
Hans E. Schweickardt
Jasmin Staiblin
Patrick Mariller
Jasmin Staiblin
COB
CEO
CFO
CEO
Focus in 2013: Foundations laid for
transformation of the Alpiq Group
Net debt halved;
Capital market capability ensured
Annual Results Media Conference , 5 March 2014
4
Focus in 2013: Foundations laid for
transformation of the Alpiq Group
Net debt halved;
Capital market capability ensured
High liquidity; financial flexibility increased
Annual Results Media Conference , 5 March 2014
5
Focus in 2013: Foundations laid for
transformation of the Alpiq Group
Net debt halved;
Capital market capability ensured
High liquidity; financial flexibility increased
Cost reductions are effective and will continue
Annual Results Media Conference , 5 March 2014
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Focus in 2013: Foundations laid for
transformation of the Alpiq Group
Net debt halved;
Capital market capability ensured
High liquidity; financial flexibility increased
Cost reductions are effective and will continue
Operative performance satisfactory;
Environment remains difficult
Annual Results Media Conference , 5 March 2014
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Focus in 2013: Foundations laid for
transformation of the Alpiq Group
Net debt halved;
Capital market capability ensured
High liquidity; financial flexibility increased
Cost reductions are effective and will continue
Operative performance satisfactory;
Environment remains difficult
Strategy approved; Group transformation started
Annual Results Media Conference , 5 March 2014
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Wholesale prices at a sustained, historic
low level
• New power plant constructions before
the financial crisis
Annual Results Media Conference , 5 March 2014
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Wholesale prices at a sustained, historic
low level
• New power plant constructions before
the financial crisis
• High subsidies and prioritisation of new
renewable energies
Annual Results Media Conference , 5 March 2014
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Wholesale prices at a sustained, historic
low level
• New power plant constructions before
the financial crisis
• High subsidies and prioritisation of new
renewable energies
• Weak economic development in Europe,
energy efficiency and strong Swiss franc
Annual Results Media Conference , 5 March 2014
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Wholesale prices at a sustained, historic
low level
• New power plant constructions before the
financial crisis
• High subsidies and prioritisation of new
renewable energies
• Weak economic development in Europe and
energy efficiency
Over capacity
• Low coal and CO2 prices ; coal renaissance
Pressure on gas and hydropower plants
Annual Results Media Conference , 5 March 2014
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Operating business 2013 at a glance
Conventional power plants under pressure
•
Gas-fired combined-cycle plants with fewer operating hours
•
Nuclear power plants: Revision at Gösgen impacts result
•
Coal-fired power plant: Kladno in operation
•
Hydropower: under pressure
•
Wind and small hydroelectric: Better than in previous year
Annual Results Media Conference, 5 March 2014
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Operating business 2013 at a glance
Conventional power plants under pressure
•
Gas-fired combined-cycle plants with fewer operating hours
•
Nuclear power plants: Revision at Gösgen impacts result
•
Coal-fired power plant: Kladno in operation
•
Hydropower: under pressure
•
Wind and small hydroelectric: Better than in previous year
Successful energy trading
•
Short-term markets and ancillary services profitable
•
Positive cross border trading in Central and Eastern Europe
Annual Results Media Conference, 5 March 2014
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Operating business 2013 at a glance
Conventional power plants under pressure
•
Gas-fired combined-cycle plants with fewer operating hours
•
Nuclear power plants: Revision at Gösgen impacts result
•
Coal-fired power plant: Kladno in operation
•
Hydropower: under pressure
•
Wind and small hydroelectric: Better than in previous year
Successful energy trading
•
Short-term markets and ancillary services profitable
•
Positive cross border trading in Central and Eastern Europe
Energy services: Market leadership expanded
•
Building and traffic technology in Switzerland on course
•
Energy and plant technology in Germany impacted by
cautious investment climate. New potential: Power station
dismantling
Annual Results Media Conference, 5 March 2014
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Agenda
1. Welcoming Address
2. Operative Performance
3. Financial Results
4. New Strategy
5. Q & A
Hans E. Schweickardt
Jasmin Staiblin
Patrick Mariller
Jasmin Staiblin
COB
CEO
CFO
CEO
Financial Highlights
EBITDA (CHF million)
EBIT (CHF million)
1,212
997
Net profit/loss (CHF million)
Operating cash flow (CHF million)
670
466
-1,094
2012
 Operating result before exceptional items
 Result according to IFRS
2013
Annual Results Media Conference, 5 March 2014
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Development of Forward Prices / Spot Prices
85
75
EUR/MWh
65
55
45
35
25
Jan/ 11 Mrz/ 11 Mai/ 11 Jul/ 11 Sep/ 11 Nov/ 11 Jan/ 12 Mrz/ 12 Mai/ 12 Jul/ 12 Sep/ 12 Nov/ 12 Jan/ 13 Mrz/ 13 Mai/ 13 Jul/ 13 Sep/ 13 Nov/ 13
DE-CAL 14-P
Source: EEX
DE-CAL 15-P
DE-CAL 16-P
DE-CAL 14-O
DE-CAL 15-O
DE-CAL 16-O
Annual Results Media Conference, 5 March 2014
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Alpiq Group
FY 2012
according
to IFRS
FY 2013
according
to IFRS
FY 2012
before
except.
items
FY 2013
before
except.
items
CHF million
Net revenue
Diff. FY
2013 vs.
previous
yr.
before
except.
items
12,723
9,370
12,723
9,370
-3,353
Other operating income
Total revenue and other
income
434
184
224
173
-51
13,157
9,554
12,947
9,543
-3,404
Energy and inventory costs
-10,619
-7,647
-10,672
-7,638
3,034
Employee costs
-895
-808
-895
-808
87
Other operating costs
-431
-310
-383
-301
82
EBITDA
1,212
789
997
796
-201
Depreciation, amortisation and
impairment
-2,136
-510
-473
-297
176
-924
279
524
499
-25
-62
-126
-74
-70
4
-255
-149
-209
-149
60
147
14
-29
-6
23
-1,094
18
212
274
62
EBIT
Share of results of joint
ventures and other associates
Finance income/costs
Income tax
Group net profit/loss
 Continued pressure on energy
business
 Revenue down by 26% impacted
by negative price effect, low
trading activities and closure of
certain businesses
 Transfer of high voltage grids to
Swissgrid
 Cost reduction measures having
positive impact
 Extraordinary impairments on
gas-fired combined-cycle plants,
new renewable energies as well
as purchase and supply
contracts
 Positive effect through
impairment reversal of power
plants in Kladno and Zlín
 Lower write-downs due
impairments in financial year
2012
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Development of EBITDA before exceptional items
by business units (YoY)
-20%
-185
-12
-19
997
EBITDA 2013
before
exceptional
items
Miscellaneous
Energy
Services
Commerce &
Trading
Generation
796
EBITDA 2012
before
exceptional
items
CHF million
15
Annual Results Media Conference, 5 March 2014
20
499
Annual Results Media Conference, 5 March 2014
EBIT 2013 (IFRS)
6
Exceptional items 2013
524
EBIT 2013 before exceptional
items
31
Miscellaneous
-91
Cost develpoment
-21
Operative business
-28
Reduced business portfolio
78
PPA and accounting effects
Operative one-off effects
EBIT 2012 before exceptional
items
Exceptional items 2012
EBIT 2012 (IFRS)
CHF million
EBIT Development (YoY)
-5%
-220
279
1,448
-924
21
-56
1,306
-1,094
20
18
Net profit/loss 2013 (IFRS)
-220
Taxes on exceptional items
2013
Exceptional items 2013 on
EBIT level
274
Impairment (before taxes)
12
Net profit/loss 2013 before
exceptional items
59
Other costs
-7
Finance costs
23
Foreign currency translation
-25
Taxes (excluding exceptional
items)
212
Delta at EBIT level (excluding
exceptional items)
Net profit/loss before
exceptional items
Exceptional items 2012
Net profit/loss 2012 (IFRS)
CHF
million
Net revenue development (YoY)
+29%
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Positive effect due to restructuring
measures
Restructuring
programme
Most important
divestments
2013
 Cost reduction measures have positive impact
 Closure of non-strategic businesses activities
 Successful divestments with earnings of over CHF 1.6 billion
Sale of
interests in
A2A (final
tranche)
Sale of intersts
in Romande
Energie
(1st tranche)
Grid transfer to
Swissgrid
(1st tranche
shareholders’
loan)
Sale of 24.6%
Sale of interest in
interest in
Romande Energie
in SES (incl. de-
Repower
(2nd tranche)
consolidaton of net
CHF 17
million
CHF 78
million
CHF 223
million
CHF 171



Sale of 60.9% interest
debt)
million

CHF 51 million

CHF 151 million
Measures to
strengthen
capital base
 Successful raising of hybrid capital over CHF 1 billion
Strengthening
financial
flexibility
 Extension of consortium credit totalling CHF 400 million
Improving
competitiveness
 Goals: Simplify processes, streamline organisation, sustainable cost
savings of another CHF 100 million

March 14
Annual Results Media Conference, 5 March 2014
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Significant reduction of net debt
5'000
4.5
4.0
4.0
3,989
4'000
3.5
CHF million
3.0
3'000
2.6
2,050
2.5
2.0
2'000
1.5
997
1'000
796
Significant reduction of net
debt (-48.6% YoY) and
improvement of debt factor
net debt/EBITDA achieved by:
 Raising shareholders'
hybrid loan and public
hybrid bond totalling over
CHF 1 billion
 Positive effects from
operative business
 Cash inflows from
divestments
1.0
0.5
0
2012
Net debt
2013
EBITDA
0.0
net debt/EBITDA
Annual Results Media Conference, 5 March 2014
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Cost development of the Energy Business
2011
2012
2013
CHF million
Personnel costs
Plant maintenance costs
Other expenses
Number of employees on the
balance sheet date
Diff. FY
2013 vs.
previous
yr.
-291
-245
-227
-7.3%
-80
-134
-113
-15.7%
-236
-192
-178
-7.3%
2,241
1,852
1,528
-17.5%
Other
Übriger
expenses
ordentlicher
Aufwand
 Reduction of personnel costs and
other expenses due to:
 Cost reduction measures
 Reduced business activities (e.g.
sale of energy and supply
engineering in Germany,
closure/sale of marketing
activities in Norway/Italy/
Germany/Spain)
 Decreased plant maintenance costs
due to cost reduction initiatives and
reduced production (particularly
thermal production)
 In the future, targeted process
simplification, organisation
streamlining in order to achieve cost
savings of CHF 100 million in 2015.
This includes a reduction of approx.
200 FTEs.
Aufwendungen
für
Plant
Instandhaltung
maintainance
von
Anlagen
costs
Personalaufwand
Personnel
costs
2011
2012
2013
Annual Results Media Conference, 5 March 2014
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Operating results vs. IFRS results
CHF millions
Net revenue
Other operating income
FY 2013
before exceptional
items
Exceptional items
FY 2013
according to IFRS
9'370
9'370
173
11
184
Total revenue and other income
9'543
11
9'554
Energy and inventory costs
-7'638
-9
-7'647
Personnel costs
-808
Other expenses
-301
-9
-310
EBITDA
796
-7
789
Depreciation, amortisation and
impairment
-297
-231
-510
EBIT
499
-220
279
-70
-56
-126
Share of results of joint ventures and
other associates
Finance costs
Finance income
Group profit/(loss) for the year
-808
-149
-149
-6
20
14
274
-256
18
März 14
Annual Results Media Conference, 5 March 2014
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Maturity profile per 31 December 2013
Total. CHF 4,471 million
773
677
588
544
545
463
357
CHF milliom
244
174
106
2014
2015
2016
Anleihen
2017
2018
2019
Privatplatzierungen
2020
2021
2022
2023ff
Banken
Solid liquidity of approx. CHF 2.4 billion per 31 Dec. 2013 and approx. CHF 750 million available
credit limits offset a balanced maturity profile in the upcoming years
Annual Results Media Conference, 5 March 2014
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Dividend policy

The Board of Directors proposes that the General Meeting once
again approves a dividend of CHF 2.00 per share from capital
reserves.
 Par value: 10 CHF
 Number of registered
shares: 27,189,873
 Market capitalisation:
3,330,759,443 CHF
2.0
2.0
2.0
2011
2012
2013
 Free float: 12.24%
 ISIN: CH0034389707
Annual Results Media Conference, 5 March 2014
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Outlook
EBITDA
Net
profit/loss
Net debt
1,209
997
2011
2012
258
212
2011
2012
4,652
796
2013
2014
274
2013
2014
3,989
2,050
2011
Equity ratio
2012
35.6%
32.4%
2011
2012
2013
2014
40.2%
2013
2014
Annual Results Media Conference, 5 March 2014
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Agenda
1. Welcoming Address
2. Operative Performance
3. Financial Results
4. New Strategy
5. Q & A
Hans E. Schweickardt
Jasmin Staiblin
Patrick Mariller
Jasmin Staiblin
COB
CEO
CFO
CEO
From a capital intensive power producer to an energy
service provider with innovative, full-service solutions
Changed
framework
conditions
New
technologies
Optimise current business
•
•
•
•
Operate existing power plant park
safely and efficiently
Reduce risks and adjust portfolio
Economically feasible framework
conditions
Innovative solutions in portfolio
management and trading
New
players
Use new opportunities
•
•
•
•
•
Full-service solutions in energy
efficiency sector
Renewable energies and energy
management
End customer business
Expand and internationalise
installation business
Focus on plant engineering
Annual Results Media Conference , 5 March 2014
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Alpiq awarded contract for largest private
construction project in Switzerland
COOP distribution centre in Schafisheim
• Size corresponds to 1000 single-family homes
• From 2016, 1900 employees, 1300 parking spaces
• Supplies 1/3 of all COOP stores in Switzerland
• Cold storage, bakery, warehouse, office building
• CO2 neutral to 2023 – savings 10,000t per year
• Biomass heating and power station
Building
technology
•
•
•
•
•
Installations
Automation
Monitoring
Protection & Safety
Sanitation systems
Energy controlling
• Operation optimisation
• Preventing unnecessary costs
• Instrumentation and control
engineering
Heating and cooling
•
•
•
•
Industrial refrigeration
Climate
Heating
Ventilation
Annual Results Media Conference , 5 March 2014
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Future energy services
Tomorrow’s customer needs
• Energy optimisation between different locations
• Own electric vehicle fleets
• Charging stations for customers' electric vehicles
• Own RES generation (PV, wind, Biomass)
• Electrical energy storage
Building
technology
Energy controlling
Storage solutions
Charging
infrastructure
Grid and market
connection
Annual Results Media Conference , 5 March 2014
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From a capital intensive power producer to an
energy service provider with innovative
full-service solutions
Medium-term impacts of the strategy:
• Diversification of the business portfolio
• Increased financial contribution of energy services
from 15% to 40%
• Divestments and investments > CHF 500 million
• Further reduction of net debt
• Net debt/EBITDA ratio between 2.0x and 2.5 x
Annual Results Media Conference , 5 March 2014
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You ask. We answer.
Appendix
Generation Portfolio
Installed capacity
Electricity production
New renewables 5%
New renewables 3%
Nuclear energy 12%
Hydro 34%
Hydro 42%
Nuclear energy 33%
Gas & coal 41%
6,460 MW (+ 19 MW YoY)
Gas & coal 29%
17,169 GWh (-2,819 GWh YoY)
Annual Results Media Conference, 5 March 2014
37
Market situation – Price development (EEX)
140
50
120
40
30
80
60
20
40
10
20
0
Feb 08 Jun 08 Okt 08 Feb 09 Jun 09 Okt 09 Feb 10 Jun 10 Okt 10 Feb 11 Jun 11 Okt 11 Feb 12 Jun 12 Okt 12 Feb 13 Jun 13 Okt 13
Spread (rhs)
Base load (lhs)
0
Peak load (lhs)
Increase in renewable energy subsidisation pushed market prices down and has
changed the supply profile on the power market
Quelle: EEX
Annual Results Media Conference , 5 March 2014
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Spread (EUR/MWh)
Normal load – Peak load
(EUR/MWh)
100
Consolidated Statement
31. Dec. 2012
Noncurrent
assets
57.6%
Current
Umlaufassets
vermögen
30.0%
30.0%
held for
ZurAssets
Veräusserung
sale
gehaltenen
Aktiven
12.4%
12.4%
31. Dec. 2013
Eigenkapital
Equity
32.4%
32.4%
Noncurrent
assets
62.6%
Long-term
Langfristiges
borrowings
Fremdkapital
42.2%
43.0%
Short-term
Kurzfristiges
borrowings
Fremdkapital
23.6%
24.0%
Equity
40.2%
Long-term
borrowings
37.9%
Liablities held for
sale
1.8%
Total Assets CHF 14,863 millions
Current
assets
37.4%
Short-term
borrowings
21.9%
Total Assets CHF 14,522 millions
- 2.3%
Annual Results Media Conference, 5 March 2014
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44
Annual Results Media Conference, 5 March 2014
from
FundsOperations
(FFO)
Funds from
operations (FFO)
Veränderung derivative
Change in derivative
Finanzinstrumente
financial instruments
in net cash
Change
Veränderung
flows
Nettoumflaufvermögen
Geldfluss aus
Adjusted cash flows
Unternehmenstätigkeit
from operating
adjusted
angepasst
activities
16
vonjoint
Dividenden
from
Dividends
Partnerwerken/Assoziierten
ventures & other
associates
-
Erhaltene Zinsen
Interest received
466
interest
Hybrid
paid
Hybridzinsen
Bezahlte
Bezahlte
Interest
paid Zinsen
aus
flows from
CashGeldfluss
Unternehmenstätigkeit
operating activities
Mio. CHF
Funds from Operations 2012
-25
231
-187
545
339
40
Shareholders
Public
12.24%
WWZ
0.91%
IBAarau
2.00%
EOS Holding
31.38%
EOS Holding
EDF
AIL
2.12%
Canton of
Solothurn
5.60%
EBM
EBL
Kanton Solothurn
AIL
EBL
7.12%
Consortium of
Swiss minority
shareholders
(KSM), 31.38%
IBAarau
WWZ
EBM
13.63%
Publikum
Public
EDF
25.00%
Annual Results Media Conference, 5 March 2014
41
Management & Divisional Organisation
General Management
Jasmin Staiblin1
CEO
Generation
Michael Wider1
Deputy CEO
Commerce & Trading
Erik Saether 1
Energy Services
Reinhold Frank1
Financial Services
Patrick Mariller1
CFO
Management Services
Jasmin Staiblin a.i. 1
Hydro Power Generation
Christian Plüss2
Asset Optimisation
Pierre Guesry
Alpiq InTec (AIT)
Peter Limacher
Accounting & Controlling
Edgar Lehrmann
Human Resources
Daniel Huber3
Nuclear Power
Generation
Michaël Plaschy
Portfolio Optimisation CEE
Peter Dworak
Energie- und
Anlagetechnik (EAT)
Reinhold Frank
Finance Projects &
Transformation
Martin Schindler4
Legal
Peter Schib
Thermal Power
Generation
Matthias Zwicky
Markets Western Europe
Martin Eschle
Taxes
Giuseppe Giglio
Strategy & Development
Vlada Spasic
RES & Generation
Development
Daniel Spinnler
Back Office
Petter Torp
Treasury & Insurance
Lukas Oetiker
Communications
Adrienne Develey
Public Affairs
Stefan Aeschimann
General Management
Functional Division
Business Division
Functional Unit
Business Unit
1) Member of the Executive Board
2) From 1 February 2014
IT
Thomas Habel
Risk Management
Walter Hollenstein
3) From 1 April 2014
4) From 1 June 2014
Annual Results Media Conference, 5 March 2014
42
Financial Calendar 2014
5 March 2014
24 April 2014
28 August 2014
3 November 2014
Annual Report 2013
Annual Media and Analyst Conference
General Meeting of Alpiq Holding AG
Quarterly Results Q1 2014
Half-Year Results 2014
Media Breakfast & Analyst Conference Call
Quarterly Results Q3 2014
Annual Results Media Conference, 5 March 2014
43
Important information on the figures in
this presentation
The figures presented for the financial year 2012 have been adapted (for IFRS 10/11; IAS 19 revised).
During the reporting period, Alpiq reviewed the presentation of income statement items in comparison with its
competitors in Switzerland and other countries. Based on the findings, Alpiq now defines “profit before income
tax” (formerly “profit before interest and tax (EBIT)”) as a starting point for the statement of cash flows. Alpiq
has also reclassified the items “interest received” in cash flow from investing activities and “interest paid” in
cash flow from financing activities (formerly a component of cash flow from operating activities). Furthermore,
the item “dividends from joint ventures, other associates and financial investments” was reclassified in cash flow
from investment activities (formerly a component of cash flow from operating activities). Alpiq has also
restructured items within cash flow from operating activities. However, these amendments have not changed
cash flow overall. The prior year presentation has been adjusted accordingly. The changes better reflect Alpiq’s
cash flows, increase transparency and allow better comparison with competitors.
Alpiq Holding AG
Disclaimer
This presentation contains statements and information about the future.
In particular, these include statements regarding management goals, financial result trends, profit margins, costs,
returns on equity, risk management and the competitive situation, and which are speculative in their nature. Terms
such as ”expect", ”assume", ”target", ”goals", ”projects", ”intend", ”plan", ”believe", ”attempt", ”estimate”, and
their variations, as well as similar expressions, serve to clarify long-term statements. These statements are based
on our current assessments, as well as certain assumptions, and, therefore, bear risks and uncertainties to some
degree.
As result, Alpiq’s actual results can deviate considerably and adversely from any, specifically or implicitly made
long-term statements. Among the factors that can contribute or cause such divergent results are economic
framework conditions, competitive impacts, political and economic developments in the countries where Alpiq is
active, changed regulatory framework conditions on the foreign and domestic energy market, and the margins for
Alpiq products. Long-term statements made by Alpiq or on its behalf solely reflect the assessment of a situation at
a specific point in time.
This document does not represent an offer to purchase or subscribe to Alpiq Holding AG securities. Decisions on the
purchase or subscription of Alpiq Holding AG should be based solely on the official listing prospectus published by
Alpiq Holding AG.
As provided for in Article 652a, respectively Article 1156, of the Swiss Code of Obligations or the SIX Swiss
Exchange AG listing rules, this document does not qualify as a prospectus, and hence, investor protection
regulations that otherwise apply for investors in Switzerland do not apply to this document.

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