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*Ad hoc announcement pursuant to Art. 53 LR
As part of its “Solutions 2030” strategic development, BKW is positioning itself in the business segments of Energy Solutions, Power Grid and Infrastructure & Buildings. By intensifying its focus along the entire energy transition value chain, BKW has become an unparalleled player in the energy, infrastructure and buildings markets. This allows the company to respond in a targeted way to the changing needs of customers, investors and society, while driving the transformation of the energy system and addressing the growing demand for energy and resource efficiency. “BKW will provide even stronger support for its customers with forward-looking solutions when it comes to the transformation of the energy system thanks to the comprehensive development of the strategy. I am proud that BKW is continuing its 125-year legacy of success with this holistic vision for the new energy world,” says Roger Baillod, Chairman of the Board of Directors.
Strong cash flow finances investments
BKW aims to drive significant growth in the coming years through its “Solutions 2030” strategy and reach an operating result (EBIT) of CHF 1 billion. To achieve this goal, BKW plans to invest around CHF 4 billion over the next six years, with at least CHF 2 billion in Switzerland. These investments will be entirely financed through BKW’s operating cash flow, which is expected to exceed CHF 5 billion between 2025 and 2030.
In the video, Chairman of the Board Roger Baillod and CEO Robert Itschner discuss BKW’s exceptional position as it launches its “Solutions 2030” strategy and the ambitious goals it seeks to accomplish.
Robert Itschner, CEO of BKW: “All of BKW’s business segments contribute to achieving these goals. BKW is investing in its strong Swiss base, while strategically expanding its footprint in other European countries. A key driver of this growth is the expansion of the energy business, including increasing renewable energy production and expanding its portfolio of tailored energy solutions for large customers. Martin Zwyssig, CFO of BKW: “Our strong financial standing, as demonstrated by our solid balance sheet, high equity ratio and A rating, enables us to seize the opportunities presented by the new energy world.”
Growth, excellence and sustainability
BKW’s “Solutions 2030” strategy is centered around the core elements of Growth, Excellence and Sustainability. In its growth journey, BKW prioritizes profitability, a consistent focus on customer needs, and active portfolio and risk management. The Energy Solutions business segment is broadening its range of energy solutions and strengthening its electricity production portfolio. In the Power Grid business segment, BKW is continuously improving its distribution grid while ensuring high availability, thereby making a significant contribution to the transformation of the energy system. The Infrastructure & Buildings business segment is pursuing profitable growth in the planning, construction and maintenance of infrastructure and buildings.
Energy Solutions
- Standardized and structured energy solutions for customers, and the generation and marketing of energy
- Strong growth:
- Expanding the range of structured and sustainable energy solutions for large customers, and optimizing the management of internal flexibilities and customer facilities
- Targeted development of BKW’s production portfolio and strengthening the Swiss base, with a focus on CO2-free electricity and greater CO2-free flexibility
- Share of Group EBIT 2030: CHF 650 million
Power Grid
- Construction and maintenance of BKW’s distribution grid in Switzerland and ensuring reliable electricity supply to over one million people and businesses
- Stability:
- Strengthening the distribution grid in the supply area and gradually scaling up investments for transformation of the energy system, while maintaining the current very high level of grid availability
- Cost-efficient grid expansion using modern processes and technologies
- Share of Group EBIT 2030: CHF 150 million
Infrastructure & Buildings
- Planning, implementation and maintenance of energy and resource-efficient infrastructure and building solutions from a single source
- Selective growth and continuous increase in profitability:
- Expanding general planning services in infrastructure and building construction
- Further strengthening of BKW solutions in energy, power grids, mobility and communications – accelerated growth in renewable energies and batteries
- Extending the range of building technology solutions and related services
- Share of Group EBIT 2030: CHF 200 million
Ambitious sustainability goals
BKW is also pursuing ambitious sustainability goals in the areas of climate, energy, nature and people with its “Solutions 2030” strategy. The company aims to reach net-zero emissions across the entire Group (Scope 1 and 2) by 2040 and halve its CO2 intensity by 2030 compared to 2022 levels. To achieve these targets, BKW will continue its systematic expansion of renewable energy production. The company will also significantly increase its investments in ecosystem preservation and biodiversity protection. A strong governance structure provides the foundation for these initiatives. Robert Itschner, CEO of BKW: “Sustainability as a core element of our ‘Solutions 2030’ strategy creates long-term growth opportunities and makes us attractive to investors, customers and employees.”
More information about BKW’s “Solutions 2030” strategy can be found at www.bkw.ch/solutions2030. The Capital Markets Day presentation will be available for download on the aforementioned website starting November 8, 2024, at 8:45 AM.
This document contains forward-looking statements, which are based on current assumptions and estimates. These statements are subject to risks and uncertainties that may cause actual results to differ materially from the expectations and forward-looking statements expressed in this document. Although BKW believes that the forward-looking statements are based on reasonable assumptions, it cannot guarantee that the expected results will be achieved. BKW is under no obligation to update any forecasts, whether as a result of new information, future events or otherwise.
This press release is issued in German, French, English and Italian. The German text is the authoritative version.