Annual Report 2020 Annual Report 2020 | MVV
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Annual Report 2020 Annual Report 2020 | MVV MVV at a Glance ADJUSTED SALES ADJUSTED EBIT 3.5 Euro billion 233 Euro million INVESTMENTS Euro million 322 2020 2 Annual Report 2020 | MVV MVV in Figures FY 2020 FY 2019 % change Financial key figures Adjusted sales excluding energy taxes 1 (Euro million) 3,515 3,756 – 6 Adjusted EBITDA 2 (Euro million) 449 409 + 10 Adjusted EBIT 2 (Euro million) 233 225 + 4 Adjusted annual net income 2 (Euro million) 128 115 + 11 Adjusted annual net income after minority interests 2 (Euro million) 104 98 + 6 Adjusted earnings per share 2 (Euro) 1.57 1.49 + 5 Dividend proposal/dividend per share (Euro) 0.90 0.90 0 Cash flow from operati ng activities (Euro million) 383 238 + 61 Cash flow from operating activities per share (Euro) 5.81 3.60 + 61 Adjusted total assets at 30 September 3 (Euro million) 4,582 4,472 + 2 Adjusted equity at 30 September 3 (Euro million) 1,571 1,544 + 2 Adjusted equity ratio at 30 September 3 (%) 34.3 34.5 – 1 Net financial debt at 30 September (Euro million) 1,374 1,345 + 2 ROCE (%) 7.7 7.9 – 3 WACC (%) 6.0 6.3 – 5 Value spread (%) 1.7 1.6 + 6 Capital employed 3,018 2,847 + 6 Investments (Euro million) 322 310 + 4 1 Previous year`s figure adjusted 2 Excluding non-operating measurement items for financial derivatives, excluding structural adjustment for part-time early retirement and including interest income in connection with finance leases 3 Excluding non-operating measurement items for financial derivatives 3 Annual Report 2020 | MVV FY 2020 FY 2019 % change Non-financial key figures Direct CO 2 emissions (Scope 1) including companies recognised at equity (tonnes 000s) 3,315 3,582 – 7 Indirect CO 2 emissions (Scopes 2 and 3) (tonnes 000s) 5,267 6,354 – 17 Net CO 2 savings (tonnes 000s) 794 486 + 63 1 Electricity generation capacity from renewable energies (MW e) 512 472 + 8 Share of renewable energies in proprietary electricity generation (%) 46 63 – 27 Electricity generation volumes from renewable energies (kWh million) 1,220 1,103 + 11 Concluded development of new renewable energies plants (MW e) 262 460 – 43 Operations management for renewable energies plants (MW e) 3,729 3,534 + 6 Number of employees at 30 September (headcount) 6,260 6,113 + 2 of which women 1,760 1,756 0 of which men 4,500 4,357 + 3 Numbe r of trainees at 30 September (headcount) 341 330 + 3 Share of female managers at 30 September (%) 15 15 0 1 Previous year´s figure adjusted 4 Annual Report 2020 | MVV Contents To Our Shareholders ......................................................... 6 Consolidated Financial Statements ............................... 91 Letter from the CEO ............................................................ 6 Income Statement ............................................................. 91 Executive Board .................................................................. 9 Statement of Comprehensive Income ............................... 92 Supervisory Board Report ................................................. 11 Balance Sheet .................................................................. 93 Share ................................................................................. 16 Statement of Changes in Equity ....................................... 94 Cash Flow Statement ....................................................... 95 Combined Management Report ..................................... 19 Notes to MVV’s 2020 Consolidated Financial Statements 97 Group Fundamentals ......................................................... 19 Notes to Income Statement ............................................ 107 Group Structure ............................................................ 19 Notes to Balance Sheet .................................................. 112 Business Model ............................................................ 20 Responsibility Statement ................................................ 168 Corporate Strategy ....................................................... 21 Directors and Officers ..................................................... 169 Value-based Corporate Management ........................... 23 Independent Auditor’s Report ......................................... 177 Technology and Innovation ........................................... 24 Group Business Performance ........................................... 26 Other Disclosures .......................................................... 183 Major Developments and Auditor’s Report on Executive Board Summary ........................................... 26 Combined Non-Financial Declaration ............................. 183 Comparison of Expected and Ten-Year Overview ......................................................... 185 Actual Business Performance and Outlook .................. 27 Financial Calendar .......................................................... 187 Business Framework .................................................... 28 Imprint/Contact ............................................................... 187 Presentation of Earnings Performance ......................... 36 Presentation of Asset Position ...................................... 41 Presentation of Financial Position ................................. 43 Combined Non-Financial Declaration ........................... 45 Business Performance of MVV Energie AG ...................... 63 Corporate Governance Declaration ................................... 67 Remuneration Report ........................................................ 75 Takeover-Related Disclosures .......................................... 79 Outlook, Opportunity and Risk Report ............................... 80 Outlook ......................................................................... 80 Opportunity and Risk Report......................................... 82 Annual Report 2020 | MVV Letter from the CEO | TO OUR SHAREHOLDERS To Our Shareholders Letter from the CEO Dr. Georg Müller CEO of MVV Energie AG DEAR LADIES AND GENTLEMEN, Decarbonisation is and will remain one of the key tasks for the future for politicians, businesses and society as a whole. It therefore made sense for the UN Climate Conference to be held under the motto “Time for Action”. Europe is taking the lead here: We can see that both the European Commission, which has adopted its ambitious Green Deal, and the Europe- an Parliament are taking their international pioneering role seriously when it comes to protecting the climate. They intend to raise the CO2 reduction targets to be achieved by 2030 to at least 55 %. Europe should be climate neutral by 2050 at the latest. Germany too will have to make greater efforts than those so far formulated in the Climate Protection Act. Among other aspects, current policies provide for raising the share of renewables-based electricity generation to at least 65 % by 2030 and for exiting from coal by 2038 at the latest. It is clear that ambitious climate protection affects us all. It requires all involved to go the extra mile. And this has to be accompanied by rapid action to clarify the relevant laws and regulations in greater detail. Reaching climate neutrality For MVV, climate protection has – alongside economic efficiency and supply reliability – been an indispensable component of our corporate strategy for many years now. We are investing just as consistently in expanding renewable energies for electricity and heating energy and in enhancing energy efficiency as we are reducing emissions in our conventional energy generation. To provide these efforts with a tangible framework, at the beginning of the past financial year we further clarified our decarbonisation strategy. Our quantitative interim targets for the years 2026 and 2030 cover all emissions sources and will enable MVV to be measured transparently as it heads for climate neutrality. That is part of how we see ourselves and also shows that we are meeting our responsibility to society. The Climate Protection Agreement just reached with the State of Baden-Württemberg, in which we have committed ourselves to our climate targets, further documents this approach. We will continue with the course already taken in the past with great determination. You can find out more about the progress we are making together with our customers from / Page 48 onwards. 6 Annual Report 2020 | MVV Letter from the CEO | TO OUR SHAREHOLDERS In First Sentier Investors, we have gained a strong shareholder with a sustainable focus Our sustainability-driven strategy also convinced First Sentier Investors (FSI), which in April acquired the 45.1 % of MVV’s shares previously held by EnBW and RheinEnergie. The City of Mannheim remains our majority shareholder with a 50.1 % stake. This means that MVV once again has a stable foundation in terms of its major shareholders. That is an important factor, particularly in times of transformation. FSI is one of the world’s leading managers of pension and retirement funds. Both our main shareholders are committed to our stock market listing, to maintaining our free float and to our broad-based business model with its focus on successfully implementing the energy turnaround. Investments in sustainable growth One core component of our corporate strategy is a comprehensive investment programme with a long-term horizon. Here, we invested Euro 322 million in the 2020 financial year alone. Alongside three major projects, our investments particularly focused on expanding our proprietary renewable energies generation portfolio: Our new and highly efficient gas-fired