Enbw Energie Baden-wuerttemberg Ag · XETR:EBK
Enbw Energie Baden-wuerttemberg — EnBW Energie Baden-Württemberg — Debt Investor Presentation (October 2024)
64 slides from Enbw Energie Baden-wuerttemberg's debt investor presentation, October 2024
Slide 1: Debt investor presentation October 2024
October 2024 Debt.investor presentation
Slide 2: Investment highlights
• Demonstrated resilience across cycles and crises • >93% of share capital constantly held by Baden-Wuerttemberg (third- largest German state) and OEW (an association of counties) • Target 2024-30: ≥70% share of regulated grids and contracted or • €40 bn of gross investments 2024-2030 with ≥85% envi
Slide 3: .....................................................................................................................…
............................................................................................................................. .................................................................................................................. ………….…………………...……….…...….…………………………………………………………………………………………
Slide 4: EnBW at a glance
• Power generation and marketing of electricity, • Generation capacity: >12 GW district heating, trading, gas storage With an integrated approach • Power generation: 27 TWh along the value chain and by • Electricity and gas grids: 179,000 km serving the entire triangle of • Transmission & distributi
Slide 5: Shareholder structure
• Austria, Czech Republic, Denmark, France, Sweden, >93% Baden-Wuerttemberg Switzerland, Türkiye, United Kingdom (3rd largest German state and one of the most prosperous regions in Europe) & OEW (an association of districts) 2% 0.4% 4% 93.5% Federal State of Baden-Wuerttemberg & OEW Currency Municip
Slide 6: Key figures and earnings development
in € bn 6.4 6,4 5.5 – 6.3 • Revenues: €44.4 bn 4.6 – 5.2 • Retained cash flow: €4.8 bn 4.0 4,0 2.8 2,8 3.0 3,0 • Gross investments: €4.9 bn 2.4 2,4 • Taxonomy-aligned capex: 87% 2019 2020 2021 20222 2023 Guidance Target • Net debt: €11.7 bn 2024 2030 • Credit ratings: A- (S&P) Baa1 (Moody‘s) • Uncer
Slide 7: Guidance 2024
in € bn • Decline on the back of the falling energy prices and lower hedged generation margins 4.6 2.6 - 3.1 • Increased capacity in renewables Guidance 2024 • Higher earnings from grids through returns 4.6 – 5.2 1.8 1.9 - 2.2 from increased investments 2023: 6.41 • No repetition of negative one-off
Slide 8: Key progress in the energy transition
+0.2 GW (to 6.5 GW) -1 GW (to 3.5 GW) 1.5 GW (under construction) Installed renewables capacity1 Coal-based capacity H2-ready new flexible capacity 55% 3% (-1% pt yoy) >800 km (under construction) Renewables installed capacity share Coal-based revenues TSO power links projects 5 GW -100 g/kWh (to 29
Slide 9: .....................................................................................................................…
............................................................................................................................. .................................................................................................................. …….………………...……….…...….…………………………………………………………………………………………………
Slide 10: Nuclear and coal phase-out and energy transition
• Decided in 2011 in a political and social consensus and regulated by law • The last 3 nuclear power plants were shut down in April 2023 • All of EnBW’s nuclear power plants are in the dismantling stage; it is technically impossible to bring them back into operation • Decided in 2020 – law sets the
Slide 11: Strategy update
• Focus on the infrastructure aspects of existing energy-related business Update of the strategy 2025 with an outlook to the period up to 2030 fields • Rigorously push forward the expansion of the energy infrastructure • Development of a balanced and diversified business portfolio along the • Accele
Slide 12: Targets 2030
0.7 - 1.0 ≥ 70% 10% ≥85% Low-risk Environmentally earnings share 30% sustainable (Adj. EBITDA Grids and 1 capex 5.5 - 6.3 2.7 - 3.0 Renewables) 40 € bn € bn 2.3 - 2.6 60% Net investments2 2024-30: €22 bn Sustainable Generation Infrastructure System Critical Infrastructure Smart Infrastructure for Cu
Slide 13: Generation portfolio development
0.2 GW 1.3 GW • Significant expansion of the 2.2 GW portfolio 0.9 GW 0.1 GW • Renewable portfolio increases to 13.4 GW 12.2 GW 1.5 GW 75-80 % 10 – 11.5 GW by 2030 o/w 2.5 GW o/w 5.7 GW Renewables Renewables Renewables • Thermal generation is gas-based; (19%) (47%) coal-free in 2028 1.0 GW 1.0 GW • S
Slide 14: Decarbonization path
in GW 6M 24: 4.5 reduction of 4.3 coal-fired 2027 2030 2035 generation capacity 2026 2028 by ~0.9 GW1 3.5 Hard coal Fuel switch projects Coal phase-out Climate neutrality 3.6 2.6 Start of commercial (subject to framework Scope 1 & 2 3.5 Lignite 2.3 operation conditions) emissions 2.6 1.7 1.4 All coa
Slide 15: Sustainable Generation Infrastructure
• Joint ventures with bp to build 5.9 GW offshore wind farms in the UK by 2029 • Power generation and marketing of electricity, district heating, trading, gas • 30% of all investments will be on the expansion of wind farms and solar parks storage and the construction of climate-friendly, hydrogen-re
Slide 16: Offshore wind projects
100% Environmentally sustainable Morven Dreekant Morgan He Dreiht Mona Location United Kingdom Location Germany, North Sea Location Germany, North Sea 3 GW (leases) Mona and Morgan Capacity 1 GW Capacity 960 MW Capacity 2.9 GW Morven 2029/30e Mona and Morgan Commissioning 2031 Commissioning 2025 Com
Slide 17: Hydrogen-ready gas power plants
100% EU Taxonomy aligned 1 Hydrogen-ready gas power plant, 675 MW Expected start of commercial operation 2026 • Final Investment Decision in March 2022 • All 3 projects under construction 2 Gas turbine plant, • Reduces carbon emissions immediately by 55% 124 MW Expected start of • Dispatchable hydro
Slide 18: System Critical Infrastructure
• Expansion of electricity and gas transport grids • Transmission and distribution grids for electricity and gas • Preparation of grid infrastructure for future demands (mobility, heat pumps, • Water supply and provision of grid-related services decentralized energy) 9,777 21,157 • Adj. EBITDA 2023:
Slide 19: SuedLink and ULTRANET
100% Environmentally sustainable Bruns- Wilster büttel Emden SuedLink ULTRANET 2 GW corridor End of 2026 Corridor ~700 km2 A-Nord (~450 km)3 TransnetBW contribution Osterath • ~40 km power lines • Converter Philippsburg ULTRANET SuedLink 2x2 GW corridor End of 2028 ~340 km4 Bergrheinfeld (~40 km)3 T
Slide 20: Smart Infrastructure for Customers
• Focus on expanding fast-charging infrastructure for e-mobility to 30,000 • Sale of electricity and gas, in addition to telecommunications points by 2030 • E-mobility and home storage systems for solar electricity • Expansion of household energy solutions, such as photovoltaics and storage 0.7 • Ad
Slide 21: E-mobility
Most popular electromobility app > 2.7 million • EBITDA break-even expected in 2024 in Germany! downloads of EnBW mobility+ app • Ranked as the winner in consumer tests as Germany’s largest and best electromobility supplier and rated as VERY GOOD as a charging network > 600,000 operator for the thir
Slide 22: .....................................................................................................................…
............................................................................................................................. .................................................................................................................. …………..………………...……….…...….…………………………………………………………………………………………
Slide 23: Financing strategy
• Refinancing of maturing liabilities • Funding of corporate growth • EnBW’s assets are typically characterised by long life cycles • Decision based on market demand, maturity profile & interest levels • First green bond issued in 2018 • Target 2030: at least 85% of all new issues to be sustainable
Slide 24: Credit ratings and targets
• Debt repayment potential • EnBW regularly checks whether target value is in line with key credit metrics of the rating agencies to safeguard rating targets A- 𝑅𝑒𝑡𝑎𝑖𝑛𝑒𝑑 𝐶𝑎𝑠ℎ 𝐹𝑙𝑜𝑤1 stable 12% 15% 𝑁𝑒𝑡 𝐷𝑒𝑏𝑡 • High share of low-risk earnings target adjusted in Integrated Annual…
Slide 25: Rating versus peer group
A A2 A– A3 BBB+ Baa1 BBB Baa2 BBB– Baa3 • EnBW is the highest and most stably rated company within its peer group, • EnBW is at the high end of the rated universe, only one company within its maintaining an A- rating since 2016 peer group maintains an A3 rating with Moody’s currently • Slight overal
Slide 26: ESG ratings
AA Leadership B Prime status 28.0 Medium risk A- Leadership 1 MSCI Scale: AAA to CCC (Leader AAA – AA; Average A – BB, Laggard B – CCC). | 2 ISS ESG Scale: A+ to D- (absolute best-in-class basis; Prime Status awarded). | 3 Sustainalytics Scale: 0 to 40+ (Risk Score: 26 negligible (0-10); low (10-20)
Slide 27: Green Financing Framework
100% Environmentally sustainable Eligible Project Contribution to • First published in 2018 and most recently green activity category UN SDGs EU taxonomy1 updated in 2024 4.1 Electricity generation using • Alignment with ICMA Green Bond Principles & • Solar (PV) energy generation solar photovoltaic
Slide 28: Thank you very much for your attention
Thank-you very much for your attention!
Slide 29: .....................................................................................................................…
............................................................................................................................. .................................................................................................................. …………..………………...……….…...….…………………………………………………………………………………………
Slide 30: Additional information: Management team
—EnBW Additional information: Management team
Slide 31: Executive Board and Supervisory Board
• Responsible for Group management and strategy • Consists of 20 experienced, diverse and independent • Represents the company legally members and is composed of an equal number of shareholder and employee representatives • Appoints members of Executive Board and defines their remuneration • Acts as
Slide 32: Additional information: Nuclear and coal
—EnBW Additional information: Nuclear and coal
Slide 33: Nuclear phase-out timeline
2005 - Obrigheim was shut down and has been in the dismantling process since 2008. March – 6 Nuclear Power Plants shut down immediately after the Fukushima incident. 2011 June – German Bundestag (Parliament) decides to phase-out nuclear energy completely - within a decade. EnBW starts the multi-stag
Slide 34: German installed capacity and nuclear dismantling
in GW 2023 2022 2021 Solar 81.8 67.6 60.1 Onshore wind 61.0 58.0 55.9 • No installed nuclear capacity for electricity generation in Germany since May 2023 Biomass 9.0 8.9 8.9 Offshore wind 8.5 8.2 7.9 • EnBW considers the dismantling of its five nuclear power plants to be part of the energy transiti
Slide 35: Coal phase-out plan
WAL 1,28 ....... Jul 2013 in MW BUS10 ............. Dec 2013 HLB 5,6 ......... Apr 2014 BEX ................ Dec 2014 HKW 16 ........... Mar 2017 WAL 1,28 (Walheim) GKM 76 ........... May 2020 HLB 5,6 DUI ................. 31 Dec 2023 BEX (Bexbach) RDK 87,9 (examination of fuel switch2) 2028 HKW 16
Slide 36: Additional information: Sustainable Generation Infrastructure
—EnBW Additional information: Sustainable Generation Infrastructure
Slide 37: Renewable Energies
0.1 1.0 1.0 • Adj. EBITDA 20232: €1.7 bn Share of total adj. EBITDA: 27% • Investments 2023: €1.2 bn 1 5.7 • Employees 2023: 7,563 (Sustainable Generation Infrastructure) 1.0 GW 1.5 • Generation capacity 2023: 5.7 GW, 47% of total generation capacity • Electricity generated 2023: 13 TWh, 48% of tota
Slide 38: Thermal Generation and Trading
0.5 1.2 • Adj. EBITDA 20233 (including trading): €2.9 bn Share of total adj. EBITDA (including trading): 46% 0.9 • Investments 2023: €0.6 bn 1 0.6 6.5 • Employees 2023: 7,563 (Sustainable Generation Infrastructure) GW • Generation capacity 2023: 6.5 GW, 53% of total generation capacity Gas Pumped st
Slide 39: Additional information: Funding
—EnBW Additional information: Funding
Slide 40: Debt portfolio and green bond share
in % 3 6 2131 4 52 Public senior bond EUR Share of green Public hybrid bond USD Green bonds to total 21 Instrument Private placement Currency GBP outstanding Conventional mix mix Promissory note CHF bonds 48 USPP JPY 66 93 3 15 21 Target share Sustainable Tier Senior Fixed/ Fix sustainable Conventio
Slide 41: Debt maturity profile
in € bn Senior bonds First call dates of hybrid bonds Hybrid bonds as of 30 June 2024 Green senior bonds First call dates of green hybrid bonds Green hybrid bonds 1.7 1.5 0.52 1.3 0.54 1.2 1.0 1.0 1.0 1.0 1.0 0.56 0.5 0.7 0.8 0.7 0.7 0.5 0.5 0.51 0.51 0.57 0.6 0.5 0.5 1.0 0.5 0.9 0.73 0.5 0.5 0.28 0
Slide 42: Allocation to green bonds
Allocation to green bonds 100% 80% 60% 40% 20% 0% Senior bond 2018 Hybrid bond 2019 Hybrid bond 2020 1 Hybrid bond 2021 Senior bond 2022 Senior bond 2023 Hybrid bond 2024 Senior bond 2024 (€0.5 bn) (€1.0 bn) (€0.5 bn) (€0.5 bn) (€1.0 bn) (€1.5 bn) (€0.5 bn) (€1.2 bn) 1 The proceeds were used to refi
Slide 43: Additional information: Financial overview
—EnBW Additional information: Financial overview
Slide 44: Adjusted EBITDA by segment
in € m €4.6 - 5.2 bn 3,498 Guidance 2024 912 - Pumped storage earnings contribution below exceptionally high 2,588 level in the previous year 596 1,695 855 - Return to normalized earnings level after very high earnings 68% low-risk contribution in 2023 55% low-risk earnings -26% earnings 1,157 1,021
Slide 45: Net cash investments
in € m Net cash investments Co-financing/divestments 2,480 13% 13% 1,584 Sustainable Generation Infrastructure Renewable Energies 2,160 €2.5 bn Thermal Generation and Trading 6M 20241 System Critical Infrastructure 1,602 35% Smart Infrastructure for Customers +57% 38% 320 -18 6M 2023 6M 2024 87% of
Slide 46: Retained cash flow
in € m in € m 4,832 3,217 2,238 880 +50% -61% 20222 2023 6M 20232 6M 2024 1 After covering interest expenses, taxes and dividend payments, the retained cash flow is available to the company for investment without the need to raise additional debt. | 2 Previous year’s figures 46 restated.
Slide 47: Net debt development
in € bn +8% • Debt repayment 2.2 potential target of 0.1 12.6 ≥15%1 -0.3 -0.4 Current credit ratings: 11.7 • A-/Baa1 0.1 -0.9 • Commitment to maintain solid investment grade ratings Net debt RCF Adjusted Net cash Equity credit of Change in pension Others Net debt 31.12.2023 working capital investmen
Slide 48: Net debt composition
in € bn 17.5 -1.5 -6.4 10.0 12.6 -7.0 9.0 Financial debt and others 50% equity Operating cash & Net financial debt Pension and nuclear Dedicated financial assets Net debt credit from hybrid bonds cash equivalents power provisions (net) 1 Numbers as of 30 June 2024. 48
Slide 49: Nuclear and pension provisions coverage
in € m 100% Coverage Nuclear and pension provisions projected 2035 10,000 8,000 6,000 Financial assets 4,000 Max. € 375 m 2 No p.a. impact impact on 800 on OCF OCF 600 400 200 0 2023 2025 2030 2035 2040 2045 2050 ◼ Operating cash flow contribution ◼ Asset contribution 1 As of December 2023. | 2 Adju
Slide 50: Key financial figures
2023 2022 2021 2020 2019 Earnings External revenue € mn 44,431 56,003 32,148 19,694 19,436 Adjusted EBITDA1 € mn 6,365 3,967 2,959 2,781 2,433 Adjusted Group net profit/loss1,2 € mn 2,780 1,413 1,203 683 787 Earnings per share2 € 5.68 6.42 1.34 2.20 2.71 Dividend per share/dividend payout ratio3 €/%
Slide 51: Energy sales and segment figures
2023 2022 2021 2020 2019 Energy sales Electricity bn kWh 81 106 108 107 153 Gas bn kWh 548 509 495 442 362 Sustainable Generation Infrastructure External revenue € mn 20,832 30,543 13,804 6,064 6,623 Adjusted EBITDA1 € mn 4,648 2,616 1,540 1,278 925 System Critical Infrastructure External revenue1 €
Slide 52: Additional information: Energy sector in Germany
—EnBW Additional information: Energy sector in Germany
Slide 53: Energy industry value chain
The energy industry is divided into the two areas of electricity and gas along comparable stages of the value chain. Electricity and gas are both non- differentiable goods ("commodities"). For this reason, each stage of the value chain is managed separately from the others. • Generation provides the
Slide 54: Merit order and electricity price
Demand for Electricity price [EUR/MWh] electricity • The merit order is the sequence of available generation capacity in a period sorted in ascending order according to variable electricity Costs for CO2 emissions generation costs Short-term variable costs/fuel costs • The electricity generation cos
Slide 55: Wholesale electricity markets
in EUR/MWh • Access to wholesale: procurement and marketing of electricity • Risk management: reduction of market price risks by hedging generation positions These markets are differentiated by the different lead times between the conclusion of the transaction and the start of delivery. • Spot marke
Slide 56: Grid regulation
Base year for following RP • Since competition between several networks in an area would be economically inefficient, networks represent a natural monopoly that is regulated 3rd regulation period gas 4th regulation period gas … • The regulator's unbundling requirements govern the relationship betwee
Slide 57: Incentive regulation revenue cap
• Incentive regulation provides for the determination of the grid operator's Inflation sales revenue as an annual revenue cap, which is passed on to all Profit consumers as grid fees Revenues from = Revenue cap set Network • To this end, the regulatory authority determines the efficient costs of eac
Slide 58: Distribution grid operator, supplier and customer roles
Distribution grid operator • The DGO1 is responsible for the connection, supply and, where applicable, control of consumers and decentralized feeders within a grid area and is therefore not freely selectable by customers • Charges for grid usage are billed to customers via the supplier Supplier • Su
Slide 59: Renewables expansion targets
in GW in GW in GW 53 125 21 215 30 7 115 36 1 55 54 8 2020 Expansion Expansion 2030 2020 Expansion Expansion 2030 2020 Expansion Expansion 2030 until 2024 from 2025 until 2024 from 2025 until 2024 from 2025 90 MW 15 MW 30 MW PV Offshore Onshore (from 2025) ... approx. a solar park in ... approx. a p
Slide 60: Additional information: Calendar, links and contacts
—EnBW Additional information: Calendar, links and contacts
Slide 61: Financial calendar and publications
Download now (PDF, 4.7 MB) 12 November 2024, 02:00 p.m. (CET) Download now (PDF, 3.6 MB) Investor and analyst conference call Download now (PDF, 11.5 MB) Download now (PDF, 5.6 MB) Download now (PDF, 8.6 MB) Download now (PDF, 2.5 MB) Open in browser now 61
Slide 62: Investor Relations contacts
SVP Finance, M&A Head of Investor Relations Head of Finance and Investor Relations +49 721 63 16 102 +49 721 63 12 210 +49 721 63 12 844 ma.muench@enbw.com l.zikmundova@enbw.com p.berlin@enbw.com 62
Slide 63: Disclaimer
No offer or investment recommendation Forward-looking statements This presentation is prepared for information purposes only. It does not constitute an offer, an invitation or a This presentation, which has been prepared by EnBW, includes statements that are, or may be deemed to be, recommendation t
Slide 64: Investor Relations
Investor Relations investor.relations@enbw.com +49 721 63-12060 Durlacher Allee 93 76131 Karlsruhe, Germany Companies registered office: Karlsruhe, Germany Local court Mannheim ⋅ HRB no. 107956 Chairman of the Supervisory Board: Lutz Feldmann Board of management: Dr. Georg Stamatelopoulos (Chairman)
EnBW Energie Baden-Württemberg — Debt Investor Presentation (October 2024) on 6ix