Annual report 2008/09 - Axpo Group

Annual Report Axpo Holding AG
62 – 63
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
EGL traded successfully
from its regional trading
centres, even though both
the economic situation and
the market environment
were diffi cult. Additional
branches were opened in
Northern and Southern
Europe as well as in the UK.
Key fi gures for EGL Group
Leading trainer of apprentices
in Central Switzerland
In 2009, CKW had a total of 1422 fulltime
equivalent positions in 80 dif ferent
professions. In the reporting year, 39
new positions were created. There are
266 apprentices, and the ratio of apprentices
to employees is around 18 %,
which not only puts CKW ahead of the
Swiss average of 7.5 %, but also confi rms
its position as the leading trainer of
apprentices in Central Switzerland.
Annual report
of EGL Group
The 2008/09 fi nancial year was overshadowed
by the impact of the fi nancial
crisis on the real economy and the
energy markets. This was manifested
on the one hand in higher credit and
market risks in the energy trading
business, although EGL’s protection
mechanisms worked well, and on the
other hand in a drop in the real eco nomy’s
demand for energy, which
affected EGL in some trading regions.
Electricity sales in million kWh 27 511
Gas sales in million kWh 1 520
Revenues in million kWh 3 990
EBIT in million kWh 330
Net profi t in million kWh 187
Number of employees* 746
* Average number of employees as of 30 September 2009 (expressed as full-time equivalents)
Net profi t well below previous year
In this diffi cult market environment,
EGL nevertheless managed to improve
its gross margin slightly by 4 % yearon-year
to CHF 810.4 million. However,
as a result of writedowns due to the
planned sale of the Energy Plus power
plant project, a negative fi nancial result
and losses on its natural gas trading
activities, the profi t shrank 41 % year-onyear
to CHF 186.7 million. The fi rst
half of the year saw signifi cant outfl ows
of cash following plunging prices for
secured energy transactions, but in
the second half of the year, EGL managed
to signifi cantly improve its cash
fl ow. The cash fl ow from operating activities
was CHF 174.5 million for the
full fi nancial year, which is 41 % less
than in the previous year. EGL’s equity
ratio improved slightly to 31.1 %, which
is still solid.
Good trading profi t
In the Energy Trading & Origination division,
EGL consistently pursued its
strategy and traded successfully from
its regional trading centres. This is
a positive development, especially in
view of the weak economy and the
diffi cult market environment, which
was initially dominated by a rapid
price collapse and high volatility, followed
fi rst by a short-lived and slight
upswing and then by a sideways movement
of prices and lessening volatility.
EGL posted excellent results for its assetbacked
trading activities and for trading
between Italy and Switzerland as
well as in the Iberian and Nordic markets.
In Italy, the most important individual
market, the very successful trading
and origination business more than compensated
the weaker results in the
retail business. In the reporting year,
EGL once again expanded its trading
activities, including the establishment
of a new trading centre in the UK and
the opening of a new origination offi ce
in Finland. It also initiated the opening
of origination offi ces in Brussels and
Düsseldorf, from where EGL will expand