ENBW Energie Baden-Wuerttemberg AG · XETR:EBK
ENBW Energie Baden-Wuerttemberg — EnBW Energie Baden-Württemberg — SG CIB Utilities Conference 2010
34 slides from ENBW Energie Baden-Wuerttemberg's conference presentation, Jan 14, 2010
Slide 1: Implementing growth in a challenging environment
EnBW Energie Baden-Württemberg AG Implementing growth in a challenging environment Ingo Peter Voigt Senior Vice President, Head of Finance/Investor Relations SG CIB Utilities Conference Paris The Power Pioneers 14 January, 2010
Slide 2: Important Note
EnBW presentation Paris, 14 January, 2010 Important Note All data contained hereinafter refers to – unless indicated otherwise – the EnBW Group and is – unless indicated otherwise – calculated according to IFRS. No offer or investment recommendation This presentation has been prepared for informatio
Slide 3: Agenda
EnBW presentation Paris, 14 January, 2010 Agenda › EnBW – positioning and challenges › Strategy and implementation › Performance drivers › Appendices 3
Slide 4: EnBW – number 3 utility in Germany
Rubrik / Kapitel EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 EnBW – number 3 utility in Germany … Electricity* Gas* Services* Adj. EBIT contribution 85% Adj. EBIT contribution 10% Adj. EBIT contribution 5% Generation mix: 15,000 MW › nuclear: 4,846 MW › fossil
Slide 5: … with lowest CO2 emissions
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 … with lowest CO2 emissions Specific CO2-emissions of utilities in g CO2e/kWh1 254 393 800 987 1) Specific greenhouse gas emissions per kWh, measured in CO2-equivalents (CO2e) based on current generation capacities i
Slide 6: A business model managing and optimising the integrated value chain
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 … and a business modell managing and optimising the integrated value chain Generation Portfolio Wholesale Sales Portfolio Fuels & CO2 Market Sales for Electricity Hedge Pricing Optimisation “Back-to-Back” Dispatch “S
Slide 7: In the last five years increased wholesale forward market prices
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 In the last five years increased wholesale forward market prices … 100 EEX Base Electricity Germany 90 80 70 60 + 64 % Electricity [€/MWh] 50 40 30 20 10 0 Jan Jan2004 2004 Jan 2005 Jan 2006 Jan 2007 Jan 2008 31.12.2
Slide 8: Profitability above capital cost – Utilities in the Golden Age
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 … and profitability above capital cost – Utilities being in the “Golden Age” Typical investment lifecycle coal fired plant1)(exemplary) € millions EBIT € millions 1.200 300 Capital employed 1000 250 800 200 600 150 4
Slide 9: Market environment: declining price levels and increased volatility
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 The current market environment is effected by a decline in price levels and an increase in volatility … 85 EEX Base 2012 80 75 70 Electricity [€/MWh] 65 - 36 % 60 55 50 45 Aug 08 Oct 08 Dec 08 Jan 09 Apr 09 Jun 09 Au
Slide 10: Utilities facing extraordinary investment needs
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 … while utilities are facing extraordinary investment needs now and in the future Exemplary: number of planned nuclear power Planned new-builts Nuclear exit planned stations1) Finland (1) Russia (36) Lithuania (2) Be
Slide 11: Agenda
EnBW presentation Paris, 14 January, 2010 Agenda › EnBW – positioning and challenges › Strategy and implementation › Performance drivers › Appendices 11
Slide 12: EnBW's strategic moves to tackle these challenges
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 EnBW‘s strategic moves to tackle these challenges We are convinced of … › the competitive advantages arising from an intensive customer orientation › the benefits of an integrated value chain within electricity and g
Slide 13: In 2009 EnBW further developed its generation capacities
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 In 2009 EnBW succeeds in further developing its generation capacities … Generation capacity in MW (owned or under long-term supply contracts) +7.3% 16,100 1,100 15,000 decisions for expansion taken 26.0 in 2009* 31.1
Slide 14: Acquiring shares and rights for fossil generation plant
EnBW presentation Paris, 14 January, 2010 … by acquiring shares and obtainment rights for fossil generation plant › Acquisition of shares from E.ON and STAWAG in Bexbach coal power station (714 MW) › Acquisition of a 50 % stake in unit S of the Lippendorf coal power station (445 MW) › Acquisition of
Slide 15: Further implementation of its renewable energies strategy
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 … and by the further implementation of its renewable energies strategy › Development of four offshore projects in the North and Baltic Sea (1.200 MW) › Acquisition of three onshore wind farms in Lower Saxony and Bran
Slide 16: Maintaining its rating in the single A category
EnBW presentation Paris, 14 January, 2010 … while maintaining its rating in the single A category Fitch, Moody’s and S&P confirm the rating: › On 5 May, 2009 Fitch rated EnBW for the first time assigning long-term rating “A” with a stable outlook and confirmed the rating following EnBW’s VNG announc
Slide 17: Agenda
EnBW presentation Paris, 14 January, 2010 Agenda › EnBW – positioning and challenges › Strategy and implementation › Performance drivers › Appendices 17
Slide 18: Main performance drivers prove EnBW's competitiveness
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 Main performance drivers prove EnBW‘s competitiveness › Lower spot and forward prices and higher volatility on electricity exchange › Decline of sales volumes, especially industrial customers › Market to market valua
Slide 19: Market environment: decline in price levels and increase in volatility
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 The current market environment is effected by a decline in price levels and an increase in volatility 85 EEX Base 2012 80 75 70 Electricity [€/MWh] 65 - 36 % 60 55 50 45 Aug 08 Oct 08 Dec 08 Jan 09 Apr 09 Jun 09 Aug
Slide 20: Economic crisis leads to continuing decline of demand
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 Economic crisis leads to a continuing decline of demand… Development of overall electricity consumption in Germany Variance compared to previous year (per normal working day) last six month 2008: -1,2% first six mont
Slide 21: Decline especially in our core industries
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 … especially in our core industries Index of production1) (1.1.2008 = 100) Automobile -25% Development of GDP in Germany industry 100 98 95 78 63 61 75 Automobile Percentage change compared to industry prior-year lev
Slide 22: Electricity sales volumes more or less stagnated in Q3
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 Development of electricity sales volumes more or less stagnated in Q3 Sales electricity in billions of kWh -6.6% 95.6 89.3 Q3 31.7 - 0.9% 31.4 Q3 Q2 29.6 - 12.2% 26.0 Q2 Q1 34.3 - 7.5% 31.9 Q1 2008 2009 22
Slide 23: Despite the drop in sales financial performance remains sound
EnBW presentation Paris, 14 January, 2010 Despite the drop in sales EnBW‘s financial performance and situation remain sound Jan-Sep 2009 respectively 30.09.2009 Variance Revenues: € 11.7bn +0.4 % Adjusted EBIT: € 1.4bn +2.6 % Adjusted group net profit: € 717m -12.8 % Equity: € 6.1bn + 8.5 % Equity r
Slide 24: Group earnings almost at previous year level, environment challenging
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 While group earnings will be almost at previous year level, utilities environment remains challenging Actual forecast EnBW EnBW Figures 2008* for 2009** Adjusted EBIT Electricity € 1.6bn slightly rising Adjusted EBIT
Slide 25: Proactive funding puts EnBW in a comfortable financing situation
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 Proactive funding puts EnBW in a comfortable financing situation Debt maturities in € millions 1000 800 600 400 200 0 2010 2011 2012 2013 2014 2015 2016 2017 2018+ 25
Slide 26: Appendices
EnBW presentation Paris, 14 January, 2010 Appendices › First nine months 2009 › Financial calendar 2010 › IR contacts 26
Slide 27: Revenues remain stable despite volume drops
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 Revenues remain stable based despite volume drops Revenues in € millions +0.4% 43 11,660 11,703 Electricity 9,413 - 1.0% 9,316 Gas Services 1,741 + 6.4% 1,852 506 +5.5% 534 Jan.-Sep. 2008 Jan.-Sep. 2009 27
Slide 28: Adjusted EBIT rising due to hedging policy
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 Adjusted EBIT rising due to hedging policy Adjusted EBIT in € millions* +2.6% 35 1,367 1,402 Electricity 1,284 +4% 1,335 Gas Services 111 -2.7% 108 64 +23.1% 79 Jan.-Sep. 2008 Jan.-Sep. 2009 * holding/consolidation n
Slide 29: Adjusted group net profit declines due to higher interest paid
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 Adjusted group net profit declines in the light of higher interest paid due to EnBW’s increased debt position Adjusted group net profit in € millions* -12.8 % 822 -105 717 Jan.-Sep. 2008 Jan.-Sep. 2009 29 * In relati
Slide 30: Cash flow from operating activities rose
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 Cash flow from operating activities rose despite a difficult economic environment € millions Jan.-Sep. 2008 Jan.-Sep. 2009 + 3.3 % 2,031 -149 1,966 -119 + 4.5 % -59 -154 Non-current 1,550 provisions Working 1,484 Oth
Slide 31: Despite further increasing capex free cash flow enhances
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 Despite further increasing capex free cash flow enhances € millions Jan.-Sep. 2008 Jan.-Sep. 2009 + 4.5 % 1,550 806 1,484 + 11.0 % 110 854 769 Capital expenditures* Other** Cash flow from operating Free cash flow act
Slide 32: Increase of net financial liabilities due to investment programme
EnBW presentation EnBW presentation Paris, Paris, 14 14 January, January, 2010 2010 Increase of net financial liabilities due to ongoing realisation of investment programme € millions Jan.-Sep. 2008 Jan.-Sep. 2009 + 33.2 % 3,093 -1,220 + 99.6 % 7,045 -854 5,825 5,287 -1.649 430 Cash and cash 738 equ
Slide 33: Financial calendar 2010
EnBW presentation Paris, 14 January, 2010 The next conference call will take place on 9 February 2010: Results of fiscal year 2009 › 9 February 2010 › 7 May 2010 Preliminary figures: January–December 2009 Interim report: January–March 2010 Conference time: 15:00 CET Conference time: 15:00 CET › 10 M
Slide 34: EnBW IR contacts
EnBW presentation Paris, 14 January, 2010 EnBW IR contacts Ingo Peter Voigt Head of T + 49 721-6314375 Finance / Investor Relations i.voigt@enbw.com Stefanie Hagenmeyer Senior Manager T + 49 721-6312697 Investor Relations s.hagenmeyer@enbw.com Julia v. Wietersheim Senior Manager T + 49 721-6312060 I
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