Enbw Energie Baden-wuerttemberg Ag · XETR:EBK
Enbw Energie Baden-wuerttemberg — EnBW Energie Baden-Württemberg — FY2020 Earnings Presentation
33 slides from Enbw Energie Baden-wuerttemberg's earnings presentation, Mar 25, 2021
Slide 1: Investor and analyst conference call FY 2020
Investor and analyst conference call FY 2020 » Thomas Kusterer Chief Financial Officer Ingo Peter Voigt Head of Finance, M&A and Investor Relations 25 March 2021
Slide 2: Key messages
Key messages ✓ Adjusted EBITDA forecast 2020 achieved ✓ Moderate COVID-19 impact proves resilient business model Sustainable finance continues: €500 m Green Subordinated ✓ and €1.5 bn sustainable syndicated loan facility EnBW and bp jointly develop two offshore wind farms in UK ✓ Investor and analys
Slide 3: EnBW 2020 Strategy completed – Adjusted EBITDA target overachieved
EnBW 2020 Strategy completed – Adjusted EBITDA target overachieved EnBW Strategy 2020 (published in 2013) 2012 Target 2020 2020 Generation and Trading 1.2 -80% 0.3 0.4 Renewable Energies 0.2 +250% 0.7 0.8 Grids 0.8 +25% 1.0 1.3 Investor and analyst conference call full year 2020 Sales 0.2 +100% 0.4
Slide 4: Environment targets 2020 - underlining our sustainability commitment
Environment targets 2020 - underlining our sustainability commitment ✓ Expand renewable energies to > 40% Reduce CO2 by 15% - 20% Share of renewable energy capacities Compared to 2015 in g CO2 / kWh1,2 2012 2020 2015 2020 19% 39% -39% 606 Investor and analyst conference call full year 2020 372 Renew
Slide 5: Taking social responsibility in times of COVID-19
Taking social responsibility in times of COVID-19 Social responsibility beyond energy supply Supply reliability: SAIDI EnBW customer in min / year satisfaction index › Donation of face masks to medical facilities 116 132 › No electricity and gas supply cut-offs 15 15 › Donation of €300,000 +14% › 24
Slide 6: Increase in adjusted EBITDA as expected – positive development in all segments
Increase in adjusted EBITDA as expected – positive development in all segments Adjusted EBITDA Share of adjusted EBITDA by segments1 in € m 2,781 2,433 18% 13% 16% 12% 21% +14% 30% 48% 56% Investor and analyst conference call full year 2020 2019 2020 2019 2020 Sales Grids Renewables Generation & Tra
Slide 7: Sales
Sales Earnings increase driven by the acquisition of Plusnet Adjusted EBITDA Sales volume Electricity Gas in € m in TWh in TWh 326 335 35 34 217 183 17 B2C B2C 15 14 17 -18 +3%% -3% +19% 200 B2B B2B 166 21 20 20191 2020 2019 2020 20191 2020 Investor and analyst conference call full year 2020 + Plusn
Slide 8: Grids
Grids Earnings on prior year level Adjusted EBITDA Transmission volume in € m Electricity Gas in TWh in TWh 1,355 1,347 62.4 59.0 34.2 34.3 -0.6% -5% +0.3% 20191 2020 2019 2020 2019 2020 Investor and analyst conference call full year 2020 ++ Transmission grids: Higher revenue from use of gas and ele
Slide 9: Renewable Energies
Renewable Energies Hohe See and Albatros significantly boost earnings Adjusted EBITDA Generation volume Renewables generation mix in € m in TWh Other Onshore 836 10.9 6% 8.9 17% 499 Run-of-river +67% +23% 47% 31% Offshore 20191 2020 2019 2020 May not add up to 100% due to rounding Investor and analy
Slide 10: Generation and Trading
Generation and Trading Market environment fosters profitability Adjusted EBITDA Generation volume Conventional generation mix in € m in TWh Other 426 442 38.8 6% Gas 25.6 18% 41% Nuclear +4% -34% 13% Lignite 20191 2020 2019 2020 22% Hard coal Investor and analyst conference call full year 2020 May n
Slide 11: EnBW is pioneering on EU taxonomy
EnBW is pioneering on EU taxonomy – reporting share of environmentally sustainable business activities Renewable energies and grids in first step Share of environmentally sustainable business activities of EnBW Group in 2020 Revenue Adjusted EBITDA Activities included1 18% › Electricity distribution
Slide 12: Retained cash flow increase mainly driven by increased cash-relevant EBITDA
Retained cash flow increase mainly driven by the increased cash-relevant EBITDA and lower income taxes paid EBITDA Retained cash flow1 in € m in € m in € m 2,663 Provisions -553 2,245 Taxes -208 1,639 Non-cash items -26 1,241 Net interest/ +29 dividends received Investor and analyst conference call
Slide 13: Internal financing capability at more than 100%
Internal financing capability at more than 100% Net investments1 Adjusted RCF2 Net investments1 Adjusted RCF2 in € m in € m in € m in € m 1,827 1,879 1,651 1,486 90% 103% Internal Internal Investor and analyst conference call full year 2020 financing financing capability3 capability 2019 2020 1 Adju
Slide 14: Increase in net debt mainly due to lower discount rate on pension provisions
Increase in net debt mainly due to lower discount rate on pension provisions and extraordinary increase in EEG payments in € m +12% 14,407 662 389 -250 12,852 2,063 Investor and analyst conference call full year 2020 -2,028 718 Net debt FFO Working capital Investments, Dividends paid 50% subordinate
Slide 15: Increased dividend proposal remains at lower end of dividend policy range
Increased dividend proposal remains at lower end of dividend policy range Adjusted Group net profit1 in € m 787 IFRS 9 valuation effects 683 336 Dividend policy: Payout ratio of 40%-60% -13% Dividend proposal 2020 €1 per share 2 Distribution €271 m Payout ratio Investor and analyst conference call f
Slide 16: Outlook 2021 – Further increase in adjusted EBITDA expected
Outlook 2021 – Further increase in adjusted EBITDA expected Outlook 2021 in € m Group 2,825 to 2,975 Smart infrastructure for customers System-critical infrastructure Sustainable generation infrastructure 335 1,347 1,278 Investor and analyst conference call full year 2020 Adj. EBITDA 2020 Adj. EBITD
Slide 17: EnBW 2025 Strategy: Developing into a sustainable and innovative infrastructure partner
EnBW 2025 Strategy: Developing into a sustainable and innovative infrastructure partner Earnings growth Adj. EBITDA in € bn 3.2 Smart infrastructure Expansion of e-mobility, telecommunication, 2.8 0.6 broadband, PV, storage for customers Sales 0.3 1.3 Expansion of transmission system 1.3 System-crit
Slide 18: EnBW and bp plan to build two offshore wind farms in UK
EnBW and bp plan to build two offshore wind farms in UK Awarded combined capacity of 3 GW Most attractive areas in the auction: Cost-effective grid access , favorable approval prospects, synergies in planning and above average wind conditions Next Steps 2021 › Habitats Regulations Assessment by TCE
Slide 19: Further ambitious target - EnBW aims for climate neutrality by 2035
Further ambitious target - EnBW aims for climate neutrality by 2035 Reduction of CO2 emissions to net zero1 Expand renewable energies 2018 2020 2025 Base year: 553 g / kWh -15% to -30% 2025 39% >50% -50% Investor and analyst conference call full year 2020 2030 Renewable energies Thermal power plants
Slide 20: Questions & Answers
Questions & Answers Investor and analyst conference call full year 2020 20
Slide 21: Appendix
Appendix › Additional information Page 22 › Service information Page 31 Investor and analyst conference call full year 2020 21
Slide 22: Non-operating result
Non-operating result 2020 2019 Variance in % in € m Income/expenses relating to nuclear power 43.7 -61.9 - Income from the reversal of other provisions 38.3 48.2 -20.5 Result from disposals 2.4 18.4 -87.0 Reversals of / additions to the provisions for onerous contracts relating to electricity procur
Slide 23: Calculation of net debt
Calculation of net debt1 in € m -6,220 14,407 13,395 10,403 -1,746 Investor and analyst conference call full year 2020 -1,425 7,232 Financial debt 50% equity Operating cash & Net financial Pension and nuclear Dedicated Net debt and others credit cash equivalents Liabilities power provisions (net) fi
Slide 24: Working capital effects
Working capital effects1 in € m 970 -146 -157 718 51 Investor and analyst conference call full year 2020 Trade receivables/payables Derivatives Inventories Others Change in Working capital 1 1.1. – 31.12.2020 24
Slide 25: Income statement
Income statement 2020 2019 Variance in % in € m1 Revenue 19,694.3 19,435.6 1.3 Changes in inventories/other own work capitalized 245.1 166.4 47.3 Cost of materials -14,347.5 -15,511.7 -7.5 Personnel expenses -2,178.7 -2,007.0 8.6 Other operating income/expenses -749.9 161.9 - EBITDA 2,663.3 2,245.2
Slide 26: Cash flow statement
Cash flow statement 2020 2019 Variance in % in € m EBITDA 2,663.3 2,245.2 18.6 Changes in provisions -553.3 -416.0 33.0 Non-cash-relevant income/expenses -26.1 46.3 - Income tax paid -207.8 -409.1 -49.2 Interest and dividends received 264.5 286.5 -7.7 Interest paid for financing activities -236.1 -2
Slide 27: Hedge levels
Hedge levels1 in % Investor and analyst conference call full year 2020 90-100 60-80 30-50 2021 2022 2023 1 As of 31 December 2020 27
Slide 28: EnBW has flexible access to various financing sources
EnBW has flexible access to various financing sources 1,2 in € bn 7.0 3.3 3.5 2.0 3.7 Debt issuance programme Subordinated bonds Commercial paper programme Thereof € 3.7 bn utilised Undrawn Investor and analyst conference call full year 2020 1.5 1.2 Other sources 0.9 0.3 › Project financing and EIB
Slide 29: Maturities of EnBW's bonds
Maturities of EnBW’s bonds in € m as of 31 December 2020 Green subordinated bonds Subordinated bonds 1,0001 9932 1,000 1,000 Green senior bond 1,000 9937 1,000 First call dates of green subordinated bonds First call dates of subordinated bonds Senior bonds 5005 700 5004 5004 500 500 500 Investor and
Slide 30: Fixed income: Credit ratings
Fixed income: Credit ratings A3 / negative A- / stable 11 June 2020 21 May 2020 › Leadership position as vertically integrated utility within Baden-Württemberg › EnBW is strategically lowering its earnings portfolio risk, with improved cash flow visibility › Significant proportion of EBITDA, around
Slide 31: Major sustainability ratings
Major sustainability ratings Climate-Rating ESG-Risk-Rating ESG-Rating ESG-Rating CDP1 Sustainalytics2 ISS ESG3 MSCI4 2019 2020 2020 2021 2019 2020 2020 2021 Risk B A 32.8 32.3 B- B- AA A Manage- Leader- High High Prime- Prime- Outper- Average Investor and analyst conference call full year 2020 ment
Slide 32: EnBW IR contacts
EnBW IR contacts Ingo Peter Voigt Peter Berlin Julia von Wietersheim Head of Finance, M&A and Director Capital Markets Senior Manager Investor Relations (Finance, Ratings) Investor Relations +49 721 – 63 14 375 +49 721 – 63 12 844 +49 721 – 63 12 060 investor.relations@enbw.com Lea Gantz Regina Mart
Slide 33: Financial calendar
Financial calendar 5 May 2021 Annual General Meeting 2021 Publication figures Q1 2021 10 May 2021 Conference time Investor and Analyst Conference Call: 01:00 pm Upcoming Publication figures Q2 2021 events 29 July 2021 Conference time Investor and Analyst Conference Call: 01:00 pm Investor and analys
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