Annual report 2008/09 - Axpo Group

Annual report
of CKW Group
CKW Group increased its electricity
sales by 3 % to 5584 million kWh in the
2008/09 fi nancial year. Although electricity
sales in its own supply areas
tailed off as a result of the weak economy,
CKW more than compensated this
decline by increasing its sales in new
supply areas and improving its optimization
trading business by 26.5 %.
Higher costs burden result
In the reporting year, CKW Group’s revenues
improved by 7.5 % to CHF 852 million,
but earnings before interest
and taxes (EBIT) shrank by 29.1 % to
CHF 135.8 million. This was mainly
due to higher electricity procurement
costs and the assumption of system
service costs in compliance with the
new Electricity Supply Act.
CKW Group earned CHF 106.6 million
from the sale of its 20 % shareholding
in Wasserwerke Zug AG. If the other
exceptionals are taken into account,
CKW Group posted an adjusted profi t
of CHF 121.2 million, down 15.2 %
from the previous year. The reported
profi t is CHF 242 million.
Security of supply takes top priority
As the leading provider of energy
services in Central Switzerland, CKW’s
main priority is the secure, reliable
and economic supply of electricity to
its customers. To meet this obligation,
CKW makes large investments in
the security of supply. In the reporting
year, it increased its investments in
property and equipment by 38.8 % to
CHF 127 million, most of which went
towards the maintenance and reno vation
of the grid infrastructure.
Since 1980, the network load in CKW’s
supply area has doubled, and in the
same period CKW installed 17 500 new
grid connections.
Until 2020 CKW will invest more
than CHF 2 billion in electricity supply,
Key fi gures for CKW Group
Electricity sales in million kWh 5 584
Revenues in CHF million 852
EBIT in CHF million 136
Net profi t in CHF million 242
Number of employees* 1 422
* Average number of employees as of 30 September 2009 (expressed as full-time equivalents)
of which approximately CHF 1.5 billion
will be used for replacing the Beznau
and Mühleberg nuclear plants. In this
way, CKW is securing the delivery of
electricity to approximately 130 000
customers and 180 000 employees at
their workplaces in more than 15 000
production and service companies. At
the same time CKW creates much added
value for Central Switzerland: it contributes
around CHF 260 million per year
to employees, the public sector and
the regional business sector. Companies
in Canton Lucerne alone receive orders
from CKW every year for approximately
CHF 48 million.
Responsible tariff policy
CKW is aware of its responsibilities towards
its business location in these
diffi cult economic times and will not
increase its electricity prices before
autumn 2010. During the reporting year,
CKW already refrained from passing
on additional costs of CHF 27 million
caused by regulatory and statutory
requirements, and also waived another
CHF 6 million on the tariffs. This
burdened the profi t by a total of
CHF 33 million.
CKW’s commitment to its business
location is also exemplifi ed by
its energy effi ciency initiative. This
initiative was launched in collaboration
with the Lucerne Cantonal Bank
and the canton al Environment and
Energy Agency and will run until the
end of 2010. CKW is providing CHF
5 million to help home owners replace
Security of supply requires
an effi cient grid infrastructure.
CKW invests more
than CHF 70 million per year
in the maintenance and
renovation of its grid infrastructure.
The network load
has doubled since 1980,
and CKW has installed
17 500 new grid connections.
CKW spends about
CHF 260 million per year
on salaries, the public
sector and the regional
business sector in Central
Switzerland. Companies
in Canton Lucerne alone
receive orders for
CHF 48 million.