BKW (BKW) CMD 2024 summary

Strategic direction and transformation

• Announced the "Solutions 2030" strategy, focusing on growth, excellence, and sustainability, maintaining the three-pillar model: Energy Solutions, Power Grid, and Infrastructure & Buildings, with increased emphasis on energy business growth and tailored solutions.

• Plans to strengthen the Swiss base while expanding selectively in core European markets (Germany, Italy, France), addressing megatrends like rising energy demand and resource efficiency.

• Organizational restructuring and new management structure completed to better address market dynamics, customer needs, and operational excellence.

• Segment names updated to reflect a market-oriented approach, emphasizing customer-centric solutions and value creation across the energy transition value chain.

• Strategy includes ambitious sustainability targets, aiming for net zero emissions (Scopes 1 & 2 by 2040, Scope 3 by 2050) and halving CO2 intensity by 2030.

Financial guidance and investment plans

• Targets EBIT of CHF 1 billion by 2030, a 60% increase from 2023, with a range of CHF 850 million–1.2 billion depending on market conditions.

• Plans CHF 4 billion in investments from 2025–2030, with at least CHF 2 billion in Switzerland; CHF 2.5 billion in Energy Solutions, CHF 1 billion in Power Grids, CHF 0.5 billion in Infrastructure & Buildings.

• Operating cash flow expected to exceed CHF 5 billion over the period, funding investments and supporting a stable dividend policy (35–50% payout ratio).

• Segment EBIT ambitions for 2030: CHF 650 million (Energy Solutions), CHF 150 million (Power Grid), CHF 200 million (Infrastructure & Buildings).

• Group return on capital employed targeted at 8%, with an equity ratio above 50% and A credit rating maintained.

Business segment developments and growth initiatives

• Energy Solutions: Expand sustainable offerings, triple corporate PPA activities to 15 TWh, grow direct marketing to 6 GW, and add 600 MW of flexible assets by 2030.

• Power Grid: Invest CHF 1 billion by 2030 in intelligent, digitalized grid expansion, adding 2,500 km of lines and over 400,000 smart meters by 2028.

• Infrastructure & Buildings: Double DACH revenue by 2030, expand general planning, project management, and specialized expertise, and grow in battery storage and railway technology.

• Building Solutions: Expand prosumer and service business, close regional and trade gaps, and target 6% profitability and 1.5x revenue by 2030.

• Infra Services: Focus on grid infrastructure, renewables, battery storage, and rail technology, aiming for 1.5x sales growth and top 3 provider status in Germany by 2030.