Enbw Energie Baden-wuerttemberg Ag · XETR:EBK
Enbw Energie Baden-wuerttemberg — EnBW Energie Baden-Württemberg — Investor Presentation (2023)
35 slides from Enbw Energie Baden-wuerttemberg's investor presentation, 2023
Slide 1: Investor and Analyst Presentation 2022
Andreas Schell Chief Executive Officer Thomas Kusterer —_— Chief Financial Officer _ Marcel Minch ~~ SVP Finance, M&A and Investor Relations
Slide 2: Positive development of financial performance
Positive development of financial performance • Earnings performance well above guidance • Adjusted EBITDA FY22 at €3.3 bn (FY21: €~3 bn) Robust business proves resilience • Integrated lineup along the entire energy value chain • Stability especially in volatile markets and times of great uncertaint
Slide 3: SBTi validates EnBW's climate targets
Previous decarbonization -50% Climate neutrality2 timeline1 Renewable energies Accelerated & specified -50% -83% & -70% decarbonization Climate neutrality2 timeline1 Low-CO2, Grid 2027 2030 2035 dispatchable power infrastructure generation • SBTi validates EnBW’s climate targets in Scopes 1, 2 & 3 •
Slide 4: EnBW 1.5°C Paris-aligned pathway for 2035
EnBW 1.5⁰C Paris-aligned pathway for 2035 EnBW CO2-footprint of EnBW (scope 1 – in mt CO2 eq.) (scope 1 & 2) historical figure decarbonization path • Adding dispatchable power by early fuel switch from coal non-controllable emissions1 (historical) non-controllable emissions1 to gas starting in 2026
Slide 5: Fuel switch from coal to gas, H2-ready
• FID March 2022 • Investment volume of €~1.6 bn 100% taxonomy Rationale for fuel switch -aligned EnBW H2-strategy 1 Heilbronn • Cuts carbon emissions immediately by 55% (CCGT plant, ~680 MW) • New plants already H2 -ready COD expected 2026 • Dispatchable power CCGT plants • Deployment of gas turbin
Slide 6: He Dreiht offshore wind farm
100% • One of the first offshore wind projects worldwide that committed taxonomy Albatros to be delivered on zero-subsidy in an auction in 2017 -aligned Hohe See • FID March 2023 / Planned COD 2025 • 960 MW installed capacity - largest turbines to date with 15 MW each He Dreiht (64 Vestas turbines )
Slide 7: Strong financial performance
Strong financial performance • Adjusted EBITDA FY22 at €3.3 bn: +11% Debt repayment • Strong retained cash flow: €2.5 bn: +42% potential • Slight net debt increase by 5% 23% Negative impact of €1.1 bn due to VNG’s gas replacement procurement compensated • Q3 2022 non-operating earnings charge €~600
Slide 8: Adjusted EBITDA by segment
in € m Smart Infrastructure for Customers System Critical Infrastructure Renewable Energies Sustainable Generation Infrastructure 3,286 Thermal Generation and Trading 2,959 12% 16% 25% 25% 63% 73% EU taxonomy-aligned EU taxonomy-aligned +11% 43% 32% 27% 34% 2021 2022 2021 2022 1 Previous year’s figu
Slide 9: Smart Infrastructure for Customers
in € m 510 Positive development of our subsidiary Senec 344 Higher earnings from our B2B business at subsidiaries +48% 20211 2022 1 Previous year’s figures restated 9
Slide 10: System Critical Infrastructure
in € m 1,263 1,046 Substantially higher expenses for grid reserve measures including redispatch to maintain security of supply Higher congestion revenues due to a high electricity price -17% differential between Germany and neighboring countries 20211 2022 1 Previous year’s figures restated 10
Slide 11: Sustainable Generation Infrastructure
in € m 1,935 Marketing above the fixed EEG tariff 1,540 Earnings contribution from newly commissioned solar parks 1.107 Better wind yields 794 +26% Effects from the curtailment and suspension of gas supplies due to 746 828 the Russia-Ukraine war Negative valuation effects on derivative fin
Slide 12: Generation and emissions
in TWh Renewable Energies in g/kWh in % Target range 2025: 387-470g/kWh Thermal Generation and Trading 42.4 42.0 478 491 42% Renewable Energies 11,7 11,7 13.1 GW Total 5.4 GW RE 33% Coal 4.3 GW Coal -1% +3% in % 30.7 30.3 28% Renewable Energies 2021 2022 2021 2022 40% Coal 1 As of 31 December 2022 2
Slide 13: Net cash investments and expanded capex
in € m Smart Infrastructure for Customers Net cash investments System Critical Infrastructure Expanded capex2 Desinvestments Sustainable Generation Infrastructure EU taxonomy-aligned 3,154 2,809 75% growth 7% 11% 17% 2.768 20% 2.471 +12% +12% pt 60% 83% 337 386 2021 2022 1 May not add up to 100% due
Slide 14: Retained cash flow
As of 31 December 2022 in € m 2.535 + €0.7 bn cash-relevant EBITDA from customer business, 1.784 renewable energies and trading activities +42% 20211 2022 14
Slide 15: Net debt and debt repayment potential
in € m +5% 17% 23% Debt repayment Debt repayment potential potential 496 -2,389 10,847 10,351 2.768 207 -2,535 1.949 Net debt Retained cash flow Increase Net cash Loss of 50% equity Change in pension Others Net debt 31.12.2021 working capital investments credit provisions 31.12.2022 (repayment 2 sub
Slide 16: Dividend proposal of €1.10 per share
in € m 1.203 973 With €1.10 dividend proposal at prior-year level €1.10 €1.10 Payout ratio of 31% provides additional funds to finance energy Dividend per share Dividend per share2 31% Payout ratio transition and further strengthen equity base -19% 2021 2022 1 Attributable to the shareholders of
Slide 17: Outlook 2023
in € bn 2022 0.4 0.5 to 0.5 4.7 1.6 2022 to to 1.1 1.9 5.2 2.9 2022 to 1.9 3.2 17
Slide 18: Questions & Answers
—EnBW > Questions & Answers
Slide 19: Appendix
Appendix —EnBW 1. Additional information 2. Service information
Slide 20: Customer sales volumes B2C and B2B
in TWh in TWh 38 37 265 B2C 18 B2C 14 14 163 16 B2B 247 -3% -39% B2B 24 23 148 2021 2022 2021 2022 1 Does only include B2B and B2C customers 20
Slide 21: Sales volumes in TWh
in TWh in TWh 60 59 36 29 -2% -18% 2021 2022 2021 2022 1 Does only include B2B and B2C customers 21
Slide 22: Non-operating result
in € m 2022 2021 Change in % Income/expenses relating to nuclear power -591.6 70.5 - Income from the reversal of other provisions 14.8 8.6 72.1 Result from disposals 3.8 -6.6 - Reversals/increase of provisions for onerous contracts relating to electricity and gas procurement agreements 393.8 -343.1
Slide 23: Net debt composition
in € m 13.693 -6,035 -1,250 9.668 10.847 -5,229 7.214 Financial debt 50% equity Operating cash & Net financial debt Pension and nuclear Dedicated Net debt and others credit cash equivalents power provisions (net) financial assets 1 As of 31 December 2022 23
Slide 24: Change in working capital
in € m 1.225 450 2,625 -2.471 621 Trade receivables/payables Derivatives Inventories Others Change in Working capital 1 1.1. – 31.12.2022 24
Slide 25: Income statement
in € m 2022 2021 Change in % Revenue 56,002.6 32,147.9 74.2 Changes in inventories/other own work capitalized 357.2 276.9 29.0 Cost of materials -51,148.4 -25,951.0 97.1 Personnel expenses -2,591.8 -2,457.5 5.5 Other operating income/expenses 1,853.6 -1,212.8 - EBITDA 4,437.2 2,803.5 59.1 Amortizati
Slide 26: Retained cash flow reconciliation
in € m 2022 2021 Change in % EBITDA 4,473.2 2,803.5 59.6 Changes in provisions 36.2 -103.9 -134.8 Non-cash-relevant income/expenses -1,251.7 -396.3 - Income tax paid -227.9 -200.6 13.6 Interest and dividends received 427.0 358.0 19.3 Interest paid for financing activities -318.8 -314.5 1.4 Dedicated
Slide 27: Hedging of generation
in % 90-100 70-90 30-50 2023 2024 2025 1 As of 31 December 2022 27
Slide 28: Funding sources and liquidity
in € bn Other sources undrawn utilized Project financing and EIB loans, including a €0.6 bn EIB loan to finance our He Dreiht offshore wind farm. 10.0 Financing activities in the form of bank loans and promissory notes in subsidiaries 4.3 4.6 5.7 2.5 2.0 4.4 1.5 1.3 0.9 1.3 0.5 0.7 0.2 Debt issu
Slide 29: Bond maturity profile
in € m as of 31 Dec. 2022 1,500 Green subordinated bonds Green senior bond First call dates of subordinated bonds Subordinated bonds First call dates of green subordinated bonds Senior bonds 500 1,000 1,000 1,000 1,000 1,000 5003 5004 500 700 500 5002 5002 500 500 5005 500 500 500 500 1706 500 1021
Slide 30: Credit ratings
Baa1 / stable A- / negative Latest update Latest update 6 January 2023 6 December 2022 Leadership position as vertically integrated utility EnBW’s diversified and integrated position should continue to prove it is more within Baden-Württemberg resilient than non-integrated peers to changing cond
Slide 31: ESG ratings
B Management 27.7 Medium Risk B Prime Status A Average 1 CDP Scale: A to D (Leadership A/A-; Management B/B-; Awareness C/C-; Disclosure D/D-; Failure F) 3 ISS ESG Scale: A+ to D- (absolute best-in-class basis; Prime Status awarded) 2 Sustainalytics Scale: 0 to 40+ (Risk Score: negligible (0-10); lo
Slide 32: Investor Relations contacts
SVP Finance, M&A and Head of Finance Senior Manager Manager Manager Investor Relations Investor Relations Investor Relations Investor Relations +49 721 63 16 102 +49 721 63 12 844 +49 721 63 12 060 +49 721 63 13 646 +49 721 63 13 613 32
Slide 33: Financial calendar
3 May 2023, 10:00 am CET Annual General Meeting 2023 12 May 2023, 01:00 pm CET Publication of figures for 3M 2023 Investor and analyst conference call 11 August 2023, 01:00 pm CET Publication of figures for 6M 2023 Investor and analyst conference call 13 November 2023, 01:00 pm CET Publication of fi
Slide 34: Disclaimer
No offer or investment recommendation No Obligation to Update Information This presentation is provided for information purposes only and may not be reproduced either in full or in part, nor may it be passed on In giving this presentation, none of EnBW, the Joint Bookrunners or their respective agen
Slide 35: Investor Relations contact details
Investor Relations investor.relations@enbw.com +49 721 63-12060 Durlacher Allee 93 76131 Karlsruhe Companies registered office: Karlsruhe Local court Mannheim ⋅ HRB no. 107956 Chairman of the Supervisory Board: Lutz Feldmann Board of management: Andreas Schell (Chairman), Dirk Güsewell, Thomas Kuste
EnBW Energie Baden-Württemberg — Investor Presentation (2023) on 6ix