Enbw Energie Baden-wuerttemberg Ag · XETR:EBK
Enbw Energie Baden-wuerttemberg — EnBW Energie Baden-Württemberg — Investor Presentation (2023)
44 slides from Enbw Energie Baden-wuerttemberg's investor presentation, 2023
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Slide 2: Earnings performance well above guidance
• Earnings performance well above guidance despite challenging market environment • Adjusted EBITDA FY22 at €3.3 bn well above prior year (FY21: €~3bn) • SBTi validation in line with accelerated coal exit in 2028 • EnBW's transformation will position it among the strongest integrated European utilit
Slide 3: Adjusted EBITDA 2021-2023 by segment
2021 2022 2023 €3.0 bn €3.3 bn €4.7 - 5.2 bn 2,900 – 3,200 in € m in € m in € m 1,600 – 1,900 1,935 1,540 1.263 1.046 794 1,107 344 510 400 - 500 -17% 746 +28% 828 +48% 20211 2022 2023 20211 2022 2023 20211 2022 2023 energy prosumer connected home e-mobility coal phase-out increased CO2 prices smart
Slide 4: Generation portfolio, coal exit and hedging policy
2022 2022 42% 58% of generation of generation capacity capacity In operation 2022 Coal exit 2028 Hedging policy • Offshore wind 1 GW • Coal 33% of generation capacity (2022) • Hedging generation and sales position • Onshore wind 1 GW • Share adjusted EBITDA < 5% • Contracts are closed on a back-to-b
Slide 5: Renewable expansion and offshore wind in Europe
in GW 13.1 GW of which 5.4 GW renewables PV • ~3.3 GW Wind onshore 2.0 • ~2.4 GW Wind offshore 42% >50% • ~6.8 GW Renewable 2.5 Renewable Energies Energies EnBW focuses on Europe for the expansion of offshore wind power Irish sea Scotland 0.8 • Combined capacity of 3 GW • Capacity of 2.9 GW Expected
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: Fuel switch projects, hydrogen 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 turbine
Slide 8: Grid infrastructure and hydrogen
2022 2022 2022 144,000 3,100 2 1 ~26,700 km km km • Integration of renewables and e-mobility Expansion to transmit electricity generated in the Transmission/distribution of H2 from beginning of • Netze BW climate neutral since 2021 windy north to southern Germany 2030s expected; pilot projects at an
Slide 9: Customer business, e-mobility and telecommunications
Green electricity as standard product • Leading and award-winning Charge Point Operator Fibre infrastructure combined with product - 620,000t CO2 saved in 20221 (CPO) with largest fast charging network in Germany and service portfolio • Currently ~800 locations • Supply of ~5.5 m customers with • Be
Slide 10: Accelerated decarbonization timeline
Previous Climate decarbonization -50% neutrality2 timeline1 Renewable energies Accelerated & -83% & specified -50% Climate -70% decarbonization neutrality2 timeline1 Low-CO2, Grid 2027 2030 2035 dispatchable infrastructure power generation • SBTi validates EnBW’s climate targets in Scopes 1, 2 & 3 •
Slide 11: Emission reduction by scope
Direct emissions from EnBW-owned electricity and Indirect emissions transmission and distribution of Indirect emissions from gas procurement and from heat generation plants energy by subsidiaries (grid loss emissions) gas combustion at end customers Reduction1 2035 Reduction1 2035 in absolute emissi
Slide 12: 1.5°C Paris-aligned pathway for 2035
EnBW 1.5⁰C Paris-aligned pathway for 2035 CO2-footprint of EnBW (scope 1 – in mt CO2 eq.) (scope 1 & 2) historical figure decarbonization path non-controllable emissions1 (historical) non-controllable emissions1 • Adding dispatchable power by early fuel switch from coal to gas starting in 2026 in th
Slide 13: Transition plan overview
Paris-aligned targets for 2035 with 1.5°C path for emissions approved by SBTi GHG emission reduction targets (Scope 1-2, Scope 3 well below 2°C) Renewables, coal power phase out, fuel switch coal to natural gas to carbon Decarbonization levers and key actions neutral gases/hydrogen, procuring green
Slide 14: Financing strategy and capital market access
• First promissory notes and US private placement • Flexible access to capital markets • Issuance of 2 Green bonds of €1 bn in total • Well-diversified portfolio of financing sources • Bilateral credit lines of €2 bn added, total of €7.4 bn1 • Solid investment grade ratings • €600 m loan contract fo
Slide 15: Credit ratings, ESG ratings and shareholders
in €m • Solid investment-grade ratings: Moody’s Baa1 stable, S&P A- stable • Debt repayment potential1 23% in 2022 (2021 - 2025: ≥ 12%1) • 65% EBITDA contribution from regulated grid business and renewable energies Asset-Liability-Management-Model • Highly ranked sustainability ratings: Nuclear and
Slide 16: Key takeaways
• Contributing to the stabilization of the energy system, providing security of supply and driving the German energy transition • The only German utility covering the entire value chain • 65% adjusted EBITDA from regulated grids business and renewable energies in 2022 • SBTi approved EnBW’s CO2 redu
Slide 17: Appendix
Appendix —EnBW 18 Generation portfolio and own generation 19 Figures FY 2022 35 Electricity generation hedge levels 36 Financing instruments 37 Maturities of EnBW's bonds 38 Credit ratings 39 Major sustainability ratings 40 IR contacts 4) Financial calender 42 Disclaimer
Slide 18: Generation capacity and own generation
Generation capacity1 Own generation5,6 in MW in GWh 2022 share 2022 share Renewable energies 5.444 41.7% 11.744 27.9% Run-of-river 1.008 7.7% 4.676 11.1% Storage/pumped storage (using natural flow of water)2 1.513 11.6% 687 1.6% Onshore wind 1.031 7.9% 1.927 4.6% Offshore wind 976 7.5% 3.331 7.9% Ph
Slide 19: 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 20: 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 20
Slide 21: 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 21
Slide 22: 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 23: Thermal Generation and Trading
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 24: 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 25: 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 25
Slide 26: Debt repayment potential and net debt
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 27: Dividend proposal
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 28: 2023 outlook by segment
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 28
Slide 29: 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 29
Slide 30: Sales volumes
in TWh in TWh 60 59 36 29 -2% -18% 2021 2022 2021 2022 1 Does only include B2B and B2C customers 30
Slide 31: 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 32: 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 32
Slide 33: 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 33
Slide 34: 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 35: Cash flow and retained cash flow
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 36: Electricity generation hedge levels
in % 90 - 100 70 - 90 30 - 50 2023 2024 2025 1 As of 31 December 2022 36
Slide 37: Financing instruments
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 38: Maturities of EnBW's bonds
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 39: Credit ratings
Baa1 / stable A- / stable Latest update Latest update 6 January 2023 30 March 2023 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 conditio
Slide 40: Major sustainability 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 41: IR 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 41
Slide 42: 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 43: 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 44: Investor Relations
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
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