Annual report 2008/09 - Axpo Group

Annual Report Axpo Holding AG
28 – 29
Editorial / 2–3
Interview with the CEO / 4–6
Strategy / 8–10
Markets and perspectives / 12–18
Success factors / 22–29
Corporate governance / 32–47
Annual report / 50–65
In the reporting year, university
graduates in different
degree programmes voted
for Axpo as one of the top
50 employers in Switzerland
and the most attractive
company in the industry.
The “Swiss graduate barometer
2008” can be accessed at
www.trendence.de
EGL’s derivatives trading
business is subject to the
banking laws and is supervised
by the Swiss Financial
Market Supervisory Authority
(FINMA).
and university events all over Switzerland.
These efforts are bearing fruit,
and in the reporting year, university
graduates in different degree programmes
voted for Axpo as one of the
top 50 employers in Switzerland and
the most attractive company in the
industry.
In the 2008/09 fi nancial year,
Axpo Group employed a total of 15
university graduates and 12 trainees.
Apart from a company-specifi c induction
programme and an individual
training and further education programme,
these employees are also
given the opportunity to get to know
another company in the Axpo Group
during a short-term job placement or
an internship of a maximum of fi ve
months. With its “Engineering Student
of the Year 2009” award, Axpo introduced
students throughout Switzerland
to the interesting career-launching
opportunities offered by the Group.
Risk management
It is the task of Axpo’s risk management
team to ensure risk transparency,
manage the Group-wide risk potential
within the guidelines defi ned by the
Board of Directors and promote a culture
that handles risk in a transparent
manner. Axpo defi nes risk as all events
that may cause the Group to exceed
its objectives (opportunities) or fail to
reach its objectives (threats). The following
four risk dimensions that go
beyond a purely fi nancial perspective
can be derived from the mission statement
and vision of the Group:
1. EBIT@risk assesses the risk-related
fi nancial deviations from established
plans.
2. Supply reliability@risk assesses the
impact of risks on the secure supply
of electricity.
3. Environment@risk analyses the
potential hazards to man and the
environment.
4. Reputation@risk studies potential
risks to the reputation of the Group.
Systematic risk management process
Axpo has set up a risk management
process to assess and analyze the risks
at Group level and in the Group companies
every six months. The likelihood
of occurrence and the probable impact
are assessed. By aggregating and validating
these risks, the Group obtains a
consolidated picture that allows an
analysis of the risks at Group level. Basically,
each Group company is responsible
for its own risks according to
the principle of causation and manages
them under its own responsibility.
The results of this risk analysis
are compiled every six months in a risk
report and a catalogue with measures
that are processed by the Corporate Risk
Council. The Corporate Risk Council
consists of the Executive Board, representatives
of selected Group functions
and a representative of the Board of
Directors. The Corporate Risk Council
then reports to the Audit and Finance
Committee and the Board of Directors.
Risk situation
in the fi nancial year 2008/09
As regards the four risk dimensions,
the risk situation has changed in the
reporting year as follows:
1. EBIT@risk
The general risk environment has
calmed down again. The drastic and
abrupt economic slump at the beginning
of 2009 was not followed by
an unchecked nosedive as expected.
Thanks to fast action by the central
banks and government stimulus programmes,
the global economy performed
better than expected. By now
there are growing signs that the economy
is likely to recover gradually
in 2010, and the forecasts issued by
the fi nancial institutions are slightly
friendlier. Axpo, however, is regarding
the forces of economic recovery with
all due caution. The main factors that