Enbw Energie Baden-wuerttemberg Ag · XETR:EBK
Enbw Energie Baden-wuerttemberg — EnBW — Investor Presentation (April 2024)
31 slides from Enbw Energie Baden-wuerttemberg's investor presentation, April 2024
Slide 1: EnBW Investor presentation
Slide 2: EnBW at a glance
power generation, trading, transmission & distribution, energy sales and e-mobility • 12 GW generation capacity • Revenues: €44 bn • ESG ratings: A (MSCI), A- (CDP) • 27 TWh own generation • Adj. EBITDA: €6.4 bn • 87% EU taxononomy-aligned capex • 179,000 km electricity and gas grids • Retained cash
Slide 3: Investment highlights
• The only German utility covering the entire value chain • Stabilizing the energy system, providing security of supply and driving the German energy transition • Regulated grids and contracted or guaranteed renewables earnings are anchor of stability • Low-risk earnings share 2024-30: >70% • Natura
Slide 4: 2023 highlights
• reaching upper end of • significant strategic • by attracting new long- • acknowledging integrated upgraded guidance progress with expansion in term partners and issuing setup and our financial supporting higher renewables, grids, fuel green bonds strength. investments in energy switch and e-mobil
Slide 5: Adjusted EBITDA 2022, 2023 and 2024e
2022 2023 2024e €3.9 bn €6.4 bn €4.6 - 5.2 bn • uncertainty in • power price volatility • decline in European commodity markets power prices in € bn in € bn in € bn 4.7 1.9 - 2.2 1.1 2.6 - 3.1 1.8 2.6 1.1 0.50 1.1 0.25 - 0.35 3.6 0.24 1.5 +78% +68% -52% 20221 2023 2024e 20221 2023 2024e 20221 2023 2
Slide 6: Adj. EBITDA 2024 outlook drivers
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 €4.6 – 5.2 bn • Higher earnings from grids through returns 2023: €6.4 bn 1.8 1.9 - 2.2 from increased investments • No repeat of negative one-offs 2023 0.2
Slide 7: Investments 2024-30 and low-risk earnings share
0.7 - 1.0 10% 70% ≥ ≥ 85% 30% 5.5 - 6.3 2.7 - 3.0 40 Low-risk € bn Taxonomy- € bn earnings share aligned capex 60% 2.3 - 2.6 Net investments 2024-30: €22 bn Sustainable Generation Infrastructure System Critical Infrastructure Smart Infrastructure for Customers 7
Slide 8: Clear decarbonization path aligned to Paris Agreement
in GW 4.5 4.3 2027 2030 2035 2026 2028 3.5 Hard coal COD fuel switch Coal phase-out Climate neutrality 3.6 3.5 projects (subject to framework Scope 1 & 2 2.3 Lignite conditions) emissions 2.6 1.4 All coal-fired power plants registered for Scope 1 & 2 emissions Scope 1 & 2 emissions decommissioning1
Slide 9: Segment overview
—EnBW a) Segment overview
Slide 10: Risk mitigating hedging strategy
• EnBW follows a risk mitigating hedging strategy focused on reducing the earnings 47 75 - 80 impact from price fluctuations % % • Forward hedging up to 3 years in advance of our expected electricity generation, whilst also hedging the prices for necessary fuels and emission allowances • Sales contr
Slide 11: Renewable Energies segment
0.1 • Adj. EBITDA: €1.1 bn 1.0 Share of total adj. EBITDA: 17% 1.0 • Generation capacity: 5.7 GW, share of 47% • Electricity generated: 13 TWh, share of 48% 5.7 • Investments: €0.6 bn 1.0 GW 1.5 • Under construction: 137 MW onshore and 320 MW solar in Germany, 960 MW offshore in Germany • Employees:
Slide 12: Offshore wind projects
Location Germany, German Bight (North Sea) UK, 30 km from the coast of Britain, Location UK, ~60 km off the coast from Aberdeen Location 22 km from Isle of Man Foundation Fixed-bottom monopiles Generation Potential of 3 GW leases – powering ~2.9 Potential capacity in GW Type of turbine 64 x Vestas V
Slide 13: Thermal Generation and Trading segment
• Adj. EBITDA (including trading): €3.6 bn 0.5 1.2 Share of total adj. EBITDA (including trading): 56% 0.9 • Generation capacity: 6.5 GW, share of 53% • Electricity generated: 14 TWh, share of 52% 0.6 6.5 • Investments: €1.2 bn GW • Under construction: 3 H2-ready dispatchable CCGTs, 1.5 GW Gas in to
Slide 14: H2-ready gas plant projects
100% EU taxonomy- aligned 1 Heilbronn, DE (CCGT plant, 675 MW) CODe 2026 • FID March 2022 • All 3 projects under construction 2 Stuttgart-Münster, DE • Cuts carbon emissions immediately by 55% (GT plant, 124 MW) CODe 2025 • Dispatchable power CCGT plants pave the way to exit coal • Driven by heat en
Slide 15: System Critical Infrastructure segment
9,777 • Adj. EBITDA: €1.8 bn 21,157 Share of total adj. EBITDA: 28% 3,100 • Transmission volumes: electricity 55.8 TWh, gas 29.1 TWh • Investments: €2.7 bn 179,000 • Sale of 49.9% minority stake in TransnetBW to long-term partners Km • Large-scale TSO projects under construction: Start of SuedLink c
Slide 16: SuedLink and ULTRANET projects
Bruns- Wilster büttel Emden SuedLink SuedLink • 4 GW corridor Osterath ~307 km1 (540 km2) • Investment volume: >€5 bn ~763 km1 2028 ~456 km1 • TransnetBW contribution: Converter, power lines (694 km2) ULTRANET ULTRANET Berg-Rheinfeld ~42 km1 • 2 GW corridor (341 km3) • Investment volume: 1.6 bn ~42
Slide 17: Smart Infrastructure for Customers segment
0.7 • Adj. EBITDA: €0.3 bn Share of total adj. EBITDA: 4% • B2B and B2C customers2: 5.5 m • Leading charge point operator (CPO) ~5.4 and e-mobility provider (EMP) in Germany EBITDA break even expectet 2024 m1 CPO: Biggest fast charging network in Germany with >4,200 fast charging points Aim: around
Slide 18: Funding strategy and credit strength
—EnBW a) Funding strategy and credit strength
Slide 19: Funding strategy
• Refinancing of maturing liabilities • Funding of corporate growth • EnBW’s assets are typically characterized 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 20: Green bonds share and debt mix
in % 4 7 2131 4 51 Public Senior Bond EUR Share of Green Public Subordinated Bond USD Green Bonds to total 23 Instrument Private Placement Currency GBP public EUR Conventional mix mix Promissory Note CHF bonds USPP JPY 49 63 92 15 23 3 Target share Sustainable Tier Senior Fixed / Fix sustainable Con
Slide 21: Green Financing Framework
100% EU taxonomy- aligned • Published in 2018 and most recently updated in Contribution to 2023 Green activity Project categories EU taxonomy UN SDGs • Alignment with ICMA Green Bond Principles & • Offshore wind LMA Green Loan Principles Renewable 4.3 Electricity generation from wind • Onshore wind
Slide 22: Green bond allocation
Allocated to Allocated to Allocated to Allocated to • €500 m October 2018 Green Senior • €500 m October 2018 Green Senior • €1 bn November 2022 Green Senior • €500 m October 2018 Green Senior • €1 bn August 2019 Green Subordinated • €1 bn August 2019 Green Subordinated • €1.5 bn November 2023 Green
Slide 23: Credit strength
• Target: >70% share of regulated grids and contracted or guaranteed renewables earnings • Growing number of green PPAs • €40 bn 2024-30 gross investments: 60% in grids, 30% in renewables and low-carbon dispatchable generation, 10% e-mobility • >85% taxonomy-aligned capex • Commitment to solid inves
Slide 24: Additional information
Additional information 25 26 27 28 29 30 Net debt Retained cash flow Total investments Financial calender IR contacts Disclaimer —EnBW
Slide 25: Net debt
in € bn +8% 11.7 10.8 0.5 0.1 2.7 • Debt repayment -4.8 potential target of 2.3 ≥15% • Securing strong credit ratings A-/Baa1 Dec 2022 RCF Adjusted Net cash Change in pension Others Dec 2023 working capital investments provisions 30%1 Debt repayment potential +11% pt 41% RCF/ net debt RCF/ net debt
Slide 26: Retained cash flow
in € m 4,832 3,217 Higher operating earnings Higher income taxes paid and dividends +50% 20221 2023 1 Previous year’s figures restated. 26
Slide 27: Total investments
in € m Sustainable Generation Infrastructure EU taxonomy-aligned Net cash investments Renewable Energies Thermal Generation and Trading Divestments 4,903 System Critical Infrastructure Smart Infrastructure for Customers 8% 12% 3,154 2,740 24% 2023 2,768 +56% 2,163 55% 87% 386 2022 2023 80% of total
Slide 28: Financial calendar
May 2024, 10:00 a.m. CEST Integrated Annual Report 2023 7 Annual General Meeting 2024 Green Bond Impact Report 2023 May 2024, 01:00 p.m. CEST 14 Publication of figures for 3M 2024 Investor and analyst conference call Investor presentation August 2024, 01:00 p.m. CEST Factbook 2023 9 Publication of f
Slide 29: IR contacts
SVP Finance, M&A and Head of Head of Finance Investor Relations Investor Relations +49 721 63 16 102 +49 721 63 12 210 +49 721 63 12 844 investor.relations@enbw.com Senior Manager Manager Manager Investor Relations Investor Relations Investor Relations +49 721 63 12 060 +49 721 63 13 646 +49 721 63
Slide 30: 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 31: 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 (Chairma