Enbw Energie Baden-wuerttemberg Ag · XETR:EBK
Enbw Energie Baden-wuerttemberg — EnBW Energie Baden-Württemberg — Investor Presentation (April 2019)
46 slides from Enbw Energie Baden-wuerttemberg's investor presentation, April 2019
Slide 1: Investor Update 2019
Investor Update 2019» April 2019
Slide 2: Portfolio transformation successful – adjusted EBITDA target likely to be met in 2019
Portfolio transformation successful – adjusted EBITDA target likely to be met in 2019 already 2012 2020 350 Generation and Trading 1.2 -80% 0.3 to 425 425 Renewable Energies 0.2 +250% 0.7 Outlook 2019: to 500 2,350 to 1,300 Grids +25% 1.0 2,500 to 0.8 1,400 225 Sales 0.2 +100% 0.4 to 300 Investor Up
Slide 3: Transformation phase 2013-2020 followed by growth phase 2021-2025
Transformation phase 2013 - 2020 followed by growth phase 2021 - 2025 Development of earnings Adjusted EBITDA in € bn Sustainable power infrastructure, i.a. 1 ≥ 3.0 › Expansion of renewable energies (e.g. onshore and offshore wind to ≥ 3,500 MW, portfolio development of large photovoltaic projects)
Slide 4: SuedLink is the largest infrastructure project of the Energiewende
SuedLink is the largest infrastructure project of the Energiewende Cooperation with Bruns- büttel Wilster Main investments expected to start in 2020 SuedLink €10 bn 600 km 2025 Expected date of commissioning total 800 km invest Grafen- Rated output: 2 x 2 GW high voltage direct current transmission
Slide 5: Sales: competitive edge based on smart infrastructure solutions
Competitive edge in sales mainly based on smart infrastructure solutions Contracting • Optimised offer process, customer proximity and response times • E.g. energy interconnections between industrial E-mobility companies and local authorities • Cogeneration and utilisation of waste heat leading to •
Slide 6: EnBW intends to become a multinational specialist for offshore wind power
EnBW intends to become a multinational specialist for offshore wind power Hohe See & Albatros EnBW goes international › €2.2 bn total invest › Development of new markets in Europe › Construction on track: operation to › Market entry into selective global markets start in Q4 2019 as expected with foc
Slide 7: Further expansion of onshore portfolio and development of solar portfolio
Further expansion of onshore portfolio and development of solar portfolio as third pillar Photovoltaics: Onshore wind: Development of a portfolio of large ~718 MW in operation; target of projects doubling onshore and offshore capacity to over 3.5 GW by 2025 › 200 MW by 2020 › 600-800 MW by 2025 Bran
Slide 8: Wide range of activities offsetting declining physical generation portfolio
Wide range of activities offsetting declining physical generation portfolio Generation portfolio Management of EnBW’s outright position Low-carbon generation First long-term power purchase agreement › EnBW’s generation fleet getting smaller › PPA for subsidy-free 85 MW solar park with › 1,706 MW CO2
Slide 9: No immediate effect by suggestions of coal commission
No immediate effect by suggestions of coal commission due to EnBW´s fleet structure Coal Capacity in Germany (in GW) Hard Coal Lignite Implications on EnBW 23 20 › Moderate wholesale price 15 15 effect expected 8 9 0 0 (2-3 €/MWh in 2030) 2018 2022 2030 2038 (2035) › No short/medium-term effect on E
Slide 10: Sustainable business model reflected in key performance indicators
Sustainable business model reflected in EnBW’s key performance indicators Economic Sustainability 4.4 to 31 to Dimensions -10% to 4.5 32 Environmental 3.7 27.9 556 553 0% 3.4 25.8 Social/employees Dimensions Finance 2017 2018 2019 2017 2018 2019 2017 2018 2019 Installed capacity of Renewables share
Slide 11: Financing follows strategy - sustainable products Green Bond
Financing follows strategy - corporate financing based on sustainable products Issuance of inaugural Green Bond Green Financing underpins strategy on 31 Oct 2018 › Transformation towards 70% low-risk earnings in 2020 › €500 m issue size › Renewables and smart infrastructure as core element of strate
Slide 12: Infrastructure investments add well to EnBW's business model
Infrastructure investments add well to EnBW’s business model €1.8 bn investment €1.8 bn €12 bn investment 2021- 2018 Offshore wind Hohe See & Albatros, Onshore-Wind & PV 2025 Grids, almost €1 bn €3.7 bn › ~35% Sustainable power › Expansion of electricity grids Sales mainly in infrastructure › Constr
Slide 13: Internal financing capability and ALM model
Internal financing capability and ALM model express EnBW’s high financial discipline EnBW’s CF-based Asset Liability Model in € m 100% coverage OCF contribution 16,000 16.000 projected 2031 Asset contribution Provisions 12.000 12,000 8,000 8.000 Financial assets 4,000 4.000 800 NO impact on 600 OCF
Slide 14: Diversified and sustainable low-risk business profile
Diversified and sustainable low-risk business profile Until 2020 portfolio transformation Adj. EBITDA target 2020 ≥ €2.4 bn towards high share of low-risk business Securing profitability 2021 - 2025 growth phase Adj. EBITDA target 2025 › €3.0 bn diversification into new markets Debt repayment potent
Slide 15: Questions & Answers
Erneuerbare Energien Questions Top-Entwickler und Treiber des & Answers » Ausbaus Wind, Onshore und Offshore Investor Update April 2019 15
Slide 16: Appendix
Appendix › EnBW at a glance page 17 › Political & regulatory environment page 18 › German electricity market page 20 › German gas market page 24 › Figures FY 2018 page 27 › Generation portfolio page 34 › Sustainability page 35 › Financial profile page 39 › Rating page 41 › Dividend page 42 › Shareho
Slide 17: EnBW at a glance
EnBW at a glance1 One of the largest German utilities Balanced risk-return profile Key financial figures › 5.5 m customers › Focus on renewables and grids › Revenue: €20.6 bn › 13 GW generation portfolio › ~68% EBITDA contribution from › Adj. EBITDA: €2.2 bn low-risk business › Stable shareholder st
Slide 18: Political & regulatory environment: Overview
Political & regulatory environment: Overview Paris Climate Agreement: Hold the increase in global average temperature to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels -20% GHG emissions -40.0% GHG emissions EU 203
Slide 19: Political & regulatory environment: Market development
Political & regulatory environment: Market development Generation and trading Power and gas grids Customers › Sustained trend towards renewable › Volatile electricity generation detrimental to › Downturn in demand for electricity and gas due to energy energies1: grid stability efficiency and rise in
Slide 20: German electricity market: Installed capacity and generation 2017
German electricity market: Installed capacity and electricity generation 20171 2.5% 2.8% Offshore wind 14.0% 23.3% Onshore wind 6.4% Photovoltaic 7.9% 4.9% Biomass and other renewable energies 20.0% 13.5% Oil, pumped storage and other 3.6% 7.7% Natural gas 13.6% Hard coal 13.8% Ligni
Slide 21: German electricity market: Electricity consumption
German electricity market: Electricity consumption Electricity consumption in Germany in TWh 538 541 536 534 536 524 525 527 530 509 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Investor Update April 2019 Net electricity consumption stable in the past few years; reduction due to efficiency is c
Slide 22: German electricity market: Wholesale forward price
German electricity market: Wholesale forward price Forward price for baseload electricity in Germany in €/MWh 50 45 40 35 30 25 20 15 Investor Update April 2019 2013 2014 2015 2016 2017 2018 Base 2019 Base 2020 Base 2021 22
Slide 23: German electricity market: CSS and CDS
German electricity market: CSS at low levels and negative prices for CDS Clean-dark-spread base Clean-spark-spread peak in €/MWh in €/MWh › Gross margin of a coal-fired power plant › Gross margin of a gas-fired power plant (plant efficiency: 36%) (plant efficiency: 50%) 8 10 6 5 4 0 2 0 -5 -2 -10 -4
Slide 24: German gas market: Gas price
German gas market: Gas price Gas price Single-family home, gas central heating including hot water, customer on contract with regional default supplier2 (annual consumption 20,000 kWh) Cents/kWh Taxes and duties 26% 6.52 6.26 5.89 5.73 5.70 0.55 0.55 0.03 0.03 1.04 0.55 0.55 0.55 Regulated network u
Slide 25: German gas market: Front month price development
German gas market: Front month price development Front month reference prices1 in €/MWh 30 25 20 15 10 Investor Update April 2019 2012 2013 2014 2015 2016 2017 2018 25 1 Average of Gaspool and NCG
Slide 26: German gas market: Spot price development
German gas market: Spot price development Spotmarket reference prices1 in €/MWh 60 50 40 30 20 10 Investor Update April 2019 2012 2013 2014 2015 2016 2017 2018 26 1 Average of Gaspool and NCG
Slide 27: Sales segment results
Sales Operating decrease due to out-of-period effects Adjusted EBITDA Sales volume Electricity Gas in € m in TWh in TWh 330 38.7 36.4 57.0 56.3 B2C 271 14.4 B2C 15.0 17.1 14.9 -18% -6% 21.5 -1% 39.2 B2B 42.6 B2B 23.7 2017 2018 2017 2018 2017 2018 - Planned elimination of positive out-of-period effec
Slide 28: Grids segment results
Grids Expected increase Adjusted EBITDA Transmission volume Electricity Gas in € m in TWh in TWh 1,177 64.4 64.3 33.1 33.3 1,046 +13% 0% +1% 2017 2018 2017 2018 2017 2018 ++ Full consolidation of VNG + +Higher revenues from the electricity grid user charges Investor Update April 2019 28
Slide 29: Renewable Energies segment results
Renewable Energies Weather-related decrease Adjusted EBITDA Generation volume Renewables generation mix in € m in TWh1 in TWh1 332 7.1 7.2 Other Onshore 298 2.8% 13.9% -10% +1% Run-of-river 66.7% 16.7% Offshore 2017 2018 2017 2018 + Improved generation output, due to new onshore wind farms commissio
Slide 30: Generation and Trading segment results
Generation and Trading Improved operating performance Adjusted EBITDA Generation volume Conventional generation mix in € m in TWh1 in TWh1 Other 429 45.1 Gas 377 41.8 4% 8% Lignite 13% +14% +8% 46% Nuclear Hard coal 29% 2017 2018 2017 2018 + Downtime of KKP 2 nuclear power plant in 2017 - Extended r
Slide 31: FFO decreased mainly driven by nuclear fuel tax refund in 2017
FFO decreased mainly driven by the nuclear fuel tax refund in 2017 EBITDA FFO in € m in € m 3,752 -395 3,135 Provisions Taxes -271 2,090 Non-cash items -116 1,312 Net interest/ +38 dividends received Contribution to dedica- Investor Update April 2019 -34 ted financial assets 2017 2018 2018 2017 31
Slide 32: Increase in net debt
Increase in net debt In € m +14% 9,587 343 8,418 313 1,344 -1,312 481 Investor Update April 2019 Net debt FFO Working capital Investments, Dividends paid Others Net debt 31.12.2017 1 acquisitions and 31.12.2018 divestments 1 The figure for the previous year has been restated 32
Slide 33: Adjusted group net profit decreased as expected
Adjusted group net profit decreased as expected Adjusted Group net profit1 in € m 793 438 Dividend » » proposal 2018 Distribution -45% €0.65 €176 m per share Investor Update April 2019 2017 2018 1 In relation to the profit attributable to the shareholders of EnBW AG 33
Slide 34: Generation and portfolio of the EnBW Group in 2018
Generation and portfolio of the EnBW Group in 2018 Generation portfolio Own generation in MW in GWh 2018 share 2018 share Renewable Energies 3,738 28% 8,414 16% Run-of-river 1,006 8% 4,846 9% Storage/pumped storage (using natural flow of water) 1,507 11% 1,030 2% Wind onshore 718 5% 996 2% Wind offs
Slide 35: Corporate Sustainability: Integral part of the strategy
Corporate Sustainability: Integral part of the strategy Sustainability at EnBW Sustainability is integrated in › Sustainability dimensions › Corporate strategy Economic Environmental › Non-financial top KPIs and targets Social/employees › Stakeholder management › EnBW stakeholders › Risk and opportu
Slide 36: Corporate Sustainability: Ratings
Corporate Sustainability: Ratings ISS-oekom Sustainalytics Carbon Disclosure Project 2018 2018 2018 B- 73 B Prime Outperformer Management status status status Major improvements in Major improvements in › Effective initiatives in the field of climate protection › Products and services › Environmenta
Slide 37: EnBW is committed to climate protection
EnBW is committed to climate protection › EnBW’s long-term strategy is in line with the Paris Agreement CO2 intensity EnBW and the goals of the EU and the German government Goal EnBW: in g/kWh Reduction of EnBW Group CO2 intensity by › EnBW has introduced a TOP-KPI in 2013, covering expansion of Tar
Slide 38: EnBW supports CO2 reduced generation with a minimum CO2 price
Focusing on sustainability, EnBW supports CO2 reduced generation with a minimum CO2 price EnBW‘s position on minimum CO2 price Introduction of a national CO2 target price of €25 from 2020 and €30 from 2025 €25 minimum price › This would render significant market based CO2 specified for 2020 reductio
Slide 39: Maturities of EnBW's bonds
Maturities of EnBW’s bonds In € m First call dates of hybrid bonds Senior bonds 1,0001 9932;3 Green bond 1,000 9936 Hybrid bonds 700 500 500 500 1705 894 100 50 …. …. …. …. …. 2021 2022 2023 2025 2026 2033 2034 2038 2039 2044 2076 2077 Investor Update April 2019 1 First call date: hybrid maturing in
Slide 40: EnBW has flexible access to various financing sources
EnBW has a flexible access to various financing sources1 In € bn 7.00 4.4 2.00 2.00 2.6 1.75 0.25 Debt Issuance Programme Hybrid Bonds2 Commercial Paper Programme Thereof € 2.6 bn utilised2 Thereof € 0.25 utilised Project financing 1.5 1.1 and low-interest loans from the EIB Syndicated Credit Line B
Slide 41: Fixed income: Ratings
Fixed income: Ratings Rating: a sound financial policy has allowed EnBW to maintain A category ratings against the negative sector trend A3 / stable A- / stable A- / stable 12 June 2018 24 July 2018 28 September 2018 › Leadership position as a vertically integrated utility › Solid regional competiti
Slide 42: Appropriate dividend payment for EnBW's shareholders
Appropriate dividend payment for EnBW‘s shareholders Dividend in € 1 0.85 0,8 0.69 0.69 0.651 0,6 0.55 0.50 0,4 Dividend Proposal 0,2 0.00 0 2012 2013 2014 2015 2016 2017 2018 Dividend for 2018 Investor Update April 2019 › Dividend proposal of €0.65 per participating share › Total of 270,855,027 par
Slide 43: Equity capital market: Shareholder structure
Equity capital market: Shareholder structure Shareholder structure1 OEW Energie-Beteiligungs GmbH 46.75% NECKARPRI-Beteiligungsgesellschaft mbH2 46.75% Badische Energieaktionaers-Vereinigung 2.45% Gemeindeelektrizitaetsverband Schwarzwald-Donau 0.97% Neckar-Elektrizitaetsverband 0.63% EnBW Energie B
Slide 44: Financial calendar 2019
Financial calendar 2019 08.05.2019 Annual General Meeting 2019 Quarterly Statement January to March 2019 11.05.2019 Conference time: 01:00 pm Upcoming Six-Monthly Financial Report January to June 2019 Events 25.07.2019 Conference time: 01:00 pm Quarterly Statement January to September 2019 08.11.201
Slide 45: EnBW's Team
EnBW‘s Team › Thomas Kusterer Chief Financial Officer › Ingo Peter Voigt › Peter Berlin Head of Finance, M&A and IR Director Capital Markets T +49 721-6314375 T +49 721-6312844 i.voigt@enbw.com p.berlin@enbw.com › Julia v. Wietersheim Senior Manager › Julia Reinhardt Investor Relations Manager Inves
Slide 46: Disclaimer
Disclaimer Unless indicated otherwise, all data contained hereinafter the context, but may also be identified by the use of the words refers to the EnBW group and is calculated according to IFRS. “may”, “will”, “should”, “plans”, “intends”, “expects”, “believes”, “assumes”, “forecasts”, “potentially
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