European Utilities Key Player Profiles: BKW

DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
METHODOLOGY 1
ANALYSIS 2
European Utilities Key Player Profile: BKW 2
Datamonitor's Key Player Scorecard examines 31 leading utilities drawn from across Europe's competitive arenas 4
Key Players dominate power generation capacity market share in the Wmed competitive arena 5
Key Players dominate power generation output market share in the Wmed and CEE competitive arenas 6
Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share 7
Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share 8
The Key Player Scorecard assesses utilities across four pillars: Performance, Scale, Growth and Exposure 9
The Performance pillar combines 5 financial metrics to measure business performance 10
The Scale pillar combines financial and operational metrics to measure the size of a utility 11
The Growth pillar measures the rate of growth of a utility's financial and energy resources 12
The Exposure pillar combines both operational and financial measurements of risk 13
BKW scores 30.3/100 on Datamonitor's European Utility Scorecard and ranks 18 out of the 31 Key Players covered 14
BKW's ranking varies widely across the four pillars 16
BKW achieves an overall ranking of 18, with a utility score of 30.3 21
BKW scores above average on the Performance and Exposure pillars 22
BKW outperforms the Key Player average and several top ten utilities, with a slightly lower than average level of risk 23
BKW lags the Key Player average in both Scale and Growth 24
BKW's Performance ranking of 9 reflects its above average scores on each metric 25
BKW's overall financial Performance score of 13.6 exceeds the Key Player average of 10.9 26
BKW exceeds the Key Player and several top ten utilities on key Performance metrics 27
BKW surpasses the Key Player average in return on energy volume and return on investment 28
As a small utility without a gas business, BKW ranks 29 on the Scale metric 29
On the Scale pillar BKW ranks 29 30
In generation capacity, BKW ranks 27 with .55 GW 31
BKW is focused solely on power, with a supply volume of 11 TWh 32
BKW ranks in the lower half of Key Player power customer share, with less than one percent 33
At 11 TWh, BKW ranks 27 in terms of power volume 34
BKW does not have a gas business 35
BKW ranks 29 in both revenue and net income, respectively 36
Below average growth on both financial and energy metrics give BKW a ranking of 28 on that pillar 37
BKW scores well below the average on pwer supply volume growth, yet achieves a middle raning of 19 on this metric 38
BKW price earnings ratio and operating profit margin are in line with the Key Player average 39
BKW saw average annual profit growth of 9.3% outpace revenue growth of 4.2% between 2001 and 2005 40
BKW experienced slight increases in operating cash flow (0.9%) and power volume (1.9%) 41
BKW's very low debt leverage boosts its Exposure ranking to 11 42
BKW underperforms on three of the four Exposure pillar metrics 43
BKW has a short power NTR of -18% 44
BKW's power supply volume obligations exceed its generation output, leading to a short power NTR of 1,957 GW 45
BKW's is lightly leveraged, with a debt to equity ratio of 3.8% 46
BKW ranks 3 of the 31 Key Players in terms of debt leverage 47
BKW's operating cash flow grew at half the rate (0.9%) of its energy supply volume (1.9%) 48
BKW power sales are focused on its Swiss home market 49
Nuclear is BKW's main generation source 50
Switzerland is BKW's most significant market for power 51
BKW ranks in the lower half of Key Player power customer share, with less than one percent 52
APPENDIX 53
Databook 53
Definitions 72
Datamonitor Consulting 72
List of Tables
Table 1: The Key Players are drawn from across a diverse range of markets 3
Table 2: The Performance pillar combines 5 financial metrics to measure business performance 10
Table 3: The Scale pillar combines financial and operational metrics to measure the size of a utility 11
Table 4: The Growth pillar measures the rate of growth of a utility's financial and energy resources 12
Table 5: The Exposure pillar combines both operational and financial measurements of risk 13
Table 6: BKW scores 30.3/100 on Datamonitor's European Utility Scorecard and ranks 18 out of the 31 Key Players covered 15
Table 7: BKW scores 13.6/25 on the Performance pillar, and ranks 9 out of 31 on this measurement 17
Table 8: BKW scores 0.5/25 on the Scale pillar, and ranks 29 out of 31 on this measurement 18
Table 9: BKW scores 6.4/25 on the Growth pillar, and ranks 28 out of 31 on this measurement 19
Table 10: BKW scores 9.9/25 on the Exposure pillar, and ranks 11 out of 31 on this measurement 20
Table 11: BKW's Performance ranking of 9 reflects its above average scores on each metric 25
Table 12: As a small utility without a gas business, BKW ranks 29 on the Scale metric 29
Table 13: Below average growth on both financial and energy metrics give BKW a ranking of 28 on that pillar 37
Table 14: BKW's very low debt leverage boosts its Exposure ranking to 11 42
Table 15: Return on fixed assets 53
Table 16: Return on sales 54
Table 17: Operating profit margin 55
Table 18: Return on energy volume 56
Table 19: Return on investment 57
Table 20: Generation Capacity / EU25 market total 58
Table 21: Power Supply Volume / EU25 market total 59
Table 22: Gas Supply Volume / EU25 market total 60
Table 23: Net income / Net income of 94 leading utilities 61
Table 24: Revenue / Revenue of 94 leading utilities 62
Table 25: Revenue growth, 2001-2005 CAGR 63
Table 26: Profit growth, 2001-2005 CAGR 64
Table 27: Growth in operating cash flow, 2004 to 2005 65
Table 28: Gas supply volume growth, 2004-2005 66
Table 29: Growth in power supply volume, 2004 to 2005 67
Table 30: Power NTR / Power supply volume 68
Table 31: Gas NTR / Gas supply volume 69
Table 32: Debt leverage 70
Table 33: Growth in operational cash flow - Growth in energy volume 71
List of Figures
Figure 1: Datamonitor's Key Player Scorecard examines 31 leading utilities drawn from across Europe's competitive arenas 4
Figure 2: Key Players dominate power generation capacity market share in the Wmed competitive arena 5
Figure 3: Key Players dominate power generation output market share in the Wmed and CEE competitive arenas 6
Figure 4: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share 7
Figure 5: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share 8
Figure 6: BKW achieves an overall ranking of 18, with a utility score of 30.3 21
Figure 7: BKW scores above average on the Performance and Exposure pillars 22
Figure 8: BKW outperforms the Key Player average and several top ten utilities, with a slightly lower than average level of risk 23
Figure 9: BKW lags the Key Player average in both Scale and Growth 24
Figure 10: BKW's overall financial Performance score of 13.6 exceeds the Key Player average of 10.9 26
Figure 11: BKW exceeds the Key Player and several top ten utilities on key Performance metrics 27
Figure 12: BKW surpasses the Key Player average in return on energy volume and return on investment 28
Figure 13: On the Scale pillar BKW ranks 29 30
Figure 14: In generation capacity, BKW ranks 27 with .55 GW 31
Figure 15: BKW is focused solely on power, with a supply volume of 11 TWh 32
Figure 16: BKW ranks in the lower half of Key Player power customer share, with less than one percent 33
Figure 17: At 11 TWh, BKW ranks 27 in terms of power volume 34
Figure 18: BKW does not have a gas business 35
Figure 19: BKW ranks 29 in both revenue and net income, respectively 36
Figure 20: BKW scores well below the average on pwer supply volume growth, yet achieves a middle raning of 19 on this metric 38
Figure 21: BKW price earnings ratio and operating profit margin are in line with the Key Player average 39
Figure 22: BKW saw average annual profit growth of 9.3% outpace revenue growth of 4.2% between 2001 and 2005 40
Figure 23: BKW experienced slight increases in operating cash flow (0.9%) and power volume (1.9%) 41
Figure 24: BKW underperforms on three of the four Exposure pillar metrics 43
Figure 25: BKW has a short power NTR of -18% 44
Figure 26: BKW's power supply volume obligations exceed its generation output, leading to a short power NTR of 1,957 GW 45
Figure 27: BKW's is lightly leveraged, with a debt to equity ratio of 3.8% 46
Figure 28: BKW ranks 3 of the 31 Key Players in terms of debt leverage 47
Figure 29: BKW's operating cash flow grew at half the rate (0.9%) of its energy supply volume (1.9%) 48
Figure 30: Nuclear is BKW's main generation source 50
Figure 31: Switzerland is BKW's most significant market for power 51
Figure 32: BKW ranks in the lower half of Key Player power customer share, with less than one percent 52