Enbw Integrated Annual Report 2017 and Notes
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Integrated Annual Report 2017 Excluding the notes and the declaration of corporate management 2020 On track 2020 strategy Performance indicators of the EnBW Group Financial and strategic performance indicators in € million 2017 2016 Change in % External revenue 21,974.0 19,368.4 13.5 Adjusted EBITDA 2,113.0 1,938.9 9.0 Share of adjusted EBITDA accounted for by Sales in € million/in % 330.0 / 15.6 249.7 / 12.9 32.2 / – Share of adjusted EBITDA accounted for by Grids in € million/in % 1,045.9 / 49.5 1,004.1 / 51.8 4.2 / – Share of adjusted EBITDA accounted for by Renewable Energies in € million/in % 331.7 / 15.7 295.3 / 15.2 12.3 / – Share of adjusted EBITDA accounted for by Generation and Trading in € million/in % 377.1 / 17.8 337.2 / 17.4 11.8 / – Share of adjusted EBITDA accounted for by Other/Consolidation in € million/in % 28.3 / 1.4 52.6 / 2.7 -46.2 / – EBITDA 3,752.4 730.7 – Adjusted EBIT 998.8 1,024.5 -2.5 EBIT 2,504.0 -1,662.9 – Group net profit/loss1 2,054.1 -1,797.2 – Earnings per share from Group net profit/loss in €1 7.58 -6.64 – Retained cash flow 3,050.3 949.5 – Retained cash flow II 1,529.5 949.5 61.1 Net (cash) investments 1,367.1 1,316.9 3.8 Internal financing capability in % 111.9 72.1 55.2 Net financial debt2 2,917.8 3,653.8 -20.1 Coverage ratio ALM in %2 52.9 60.8 – Return on capital employed (ROCE) in %2 7.3 7.8 – Weighted average cost of capital before tax in % 6.3 6.9 – Average capital employed2 15,146.1 13,760.9 10.1 Value added2 151.5 123.8 22.4 Non-financial key performance indicators 2017 2016 Change in % Customers and society goal dimension Reputation Index 52.1 50.0 4.2 3 EnBW/Yello Customer Satisfaction Index 143 / 161 132 / 150 8.3 / 7.3 SAIDI (electricity) in min./year 19 16 18.8 Employees goal dimension Employee Commitment Index (ECI)4 60 59 1.7 LTIF 4 3.0 3.9 -23.1 Environment goal dimension Installed output of renewable energies (RE) in GW and the share of the generation capacity accounted for by RE in % 3.4 / 25.9 3.1 / 23.1 9.7 / 12.1 CO2 intensity in g/kWh 556 577 -3.6 Employees of the EnBW Group5 31/12/2017 31/12/2016 Change in % Employees 21,352 20,409 4.6 Full-time equivalents6 19,939 18,923 5.4 1 In relation to the profit/loss attributable to the shareholders of EnBW AG. 2 The figures for the previous year have been restated. 3 EnBW has been working together with a new market research company since 2017. Despite using the same survey methodology and random sampling, current and earlier values are only comparable to a limited extent. 4 Variations in the group of consolidated companies; see also the definition of key performance indicators on page 30. 5 Number of employees excluding marginally employed persons, apprentices/trainees and inactive employees. 6 Converted into full-time equivalents. Profile 2017 2012 On track. EnBW reached an important milestone in the history of the company in 2017: a turning point in earnings on the basis of a realigned business portfolio. We thus remain on track to achieve our goals in the EnBW 2020 strategy and anticipate that we will once again reach the same level of earnings in 2020 as in 2012. The further development of the EnBW strategy post 2020 is picking up speed: Based on our core expertise – the safe and reliable operation of critical infrastructure in the energy sector – we want to increasingly place the strategic focus of our company on the aspect of infra- 2017 VWUXFWXUHZLWKLQRXUH[LVWLQJEXVLQHVVʖHOGVDQGDOVR exploit new growth opportunities above and beyond the energy sector. EnBW is one of the largest energy supply companies in Germany and Europe with a workforce of more than 21,000 employees and supplies electricity, gas, water and energy solutions and energy industry services to around 5.5 million customers. We aim to further strengthen our position as a sustainable and inno- vative infrastructure partner for customers, citizens and local authorities to an even greater extent. 2020 1RWH7KHIXOOVHWRIʖQDQFLDOVWDWHPHQWVRIWKH(Q%:*URXSLQFOXGLQJWKHQRWHVWRWKHFRQVROLGDWHGʖQDQ- FLDOVWDWHPHQWVDQGWKHGHFODUDWLRQRIFRUSRUDWHPDQDJHPHQWRIWKH(Q%:*URXSDQG(Q%:$*DVZHOODV WKHFRUSRUDWHJRYHUQDQFHUHSRUWDUHDYDLODEOHWRGRZQORDGRQRXUZHEVLWH ZZZHQEZFRPUHSRUW $GHWDLOHGWDEOHRIFRQWHQWVZLWKDQH[SODQDWLRQRQKRZWRQDYLJDWHWKURXJKWKHUHSRUWFDQEHIRXQGRQWKH UHDUFRYHU 2 On track EnBW has been changing more profoundly than ever before since 2012. This is necessary to accomplish the goals in the 2020 strategy. The company already reached crucial milestones such as the turning point in earnings in 2017. 2012 €2.4 billion adjusted EBITDA 2017 2020 €2.1 billion €2.4 billion adjusted EBITDA adjusted EBITDA Strategy 3 On track 2012 Strategy defined for 2020 7KHSKDVLQJRXWRIQXFOHDUSRZHUWRXJKHUFRPSHWLWLRQDQGFOL- PDWHFKDQJHKDYHFDXVHGXSKHDYDOLQWKHHQHUJ\VHFWRU(Q%: ZDVRQHRIWKHILUVWHQHUJ\FRPSDQLHVWKDWGHFLGHGWRXQGHUJR UDGLFDOFKDQJH,QFRRSHUDWLRQZLWKPDQDJHUVDQGHPSOR\HHV VHOHFWHGIURPDOODUHDVRIWKHFRPSDQ\WKH%RDUGRI0DQDJH- PHQWGHYHORSHGWKHVWUDWHJ\DQGVLQFHWKHQ(Q%:KDVEHHQ UHRUJDQLVLQJLWVEXVLQHVVSRUWIROLRDQGH[SORLWLQJQHZJURZWK RSSRUWXQLWLHV7KHVWUDWHJ\IRFXVHVDERYHDOORQWKHH[SDQVLRQ RIUHQHZDEOHHQHUJLHVDQGWKHJULGV,QDGGLWLRQLWFRQFHQWUDWHV RQWKHGHYHORSPHQWRIQHZSURGXFWVDQGVHUYLFHVIRUFXVWRPHUV 2017 Financial trend reaches turning point (Q%: FOHDUHG DQ LPSRUWDQW VWUDWHJLF KXUGOH LQ 7KH DQQXDORSHUDWLQJUHVXOWURVHDJDLQIRUWKHILUVWWLPHVLQFH $QLPSRUWDQWLQWHUPHGLDWHJRDORIWKHVWUDWHJ\KDVWKXVEHHQ DFKLHYHGEHFDXVHWKHFRVWRIWKH(QHUJLHZHQGHDQGWKHIDOOLQ HOHFWULFLW\SULFHVKDGFDXVHGWKHSURILWVRI(Q%:WRFROODSVH 7KH*URXSFRXQWHUHGWKHVHSUREOHPVDQGUDGLFDOO\VLPSOLILHGLWV VWUXFWXUHVVRWKDWWRGD\LWFDQZRUNPRUHHFRQRPLFDOO\(Q%: VSHQGVɩELOOLRQOHVVSHU\HDUWKDQLQ7KLVDPRXQWLVVHWWR ULVHWRɩELOOLRQSHU\HDUE\$WWKHVDPHWLPHLQFUHDVLQJ UHYHQXHDQGWKHH[SDQVLRQRIUHQHZDEOHHQHUJLHVDQGWKHJULGV KDYHVXSSRUWHGWKHWXUQDURXQGLQHDUQLQJV7KH\DUHPDNLQJD JURZLQJFRQWULEXWLRQWRWKH*URXSQHWSURILWɇ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ɇVXFKDV DWWKH,QQRYDWLRQ&DPSXVLQ.DUOVUXKHRUWKH&RPSDQ\%XLOGHU LQ6WXWWJDUW 4 2020 2025 Time is on our side Prospects for growth :HZLOOGRDOOZHFDQWRRQFHDJDLQDFKLHYHHDUQLQJVRIɩELOOLRQ E\DQGWKXVUHDFKWKHVDPHOHYHODVLQɇ\HWZHZLOO Alongside our existing growth fields of DFKLHYHWKLVUHVXOWXQGHUWRWDOO\GLIIHUHQWFRQGLWLRQVUHQHZDEOH renewable energies, grids and sales, we HQHUJLHVJULGVDQGVDOHVZLOOFRQWULEXWHRIWKHQHWSURILWV have identified future growth fields in 7KHVKDUHRIWKHJHQHUDWLRQFDSDFLW\DFFRXQWHGIRUE\UHQHZDEOH the area of critical infrastructure – i. e. HQHUJLHVZLOOLQFUHDVHIURPWKHFXUUHQWILJXUHRIMXVWXQGHU systems that maintain important WR7KLVSHULRGRIUDGLFDOFKDQJHLVOLNHO\WRFRPHWRDQHQG social functions. These are not only E\:HZLOOWKHQFRQFHQWUDWHRQJURZWKDQGLQQRYDWLRQWR found in the energy sector but also in VHFXUHQHZPDUNHWV adjacent fields such as transport or telecommunications. EnBW can safely manage large, complex energy plants, Development of adjusted EBITDA extensive electricity and gas grids and LQɩELOOLRQ highly complicated IT systems. We want to transfer this expertise to other sectors. The infrastructure market in Germany is highly attractive. In the next ten years alone, investment will increase by 50 percent to €150 billion – both within the energy system and also in adjacent sectors. Group management did not develop the 2020 strategy on its own. Employees contributed their ideas in workshops and seminars. Strategy 5 On track A look ahead to the future. Three questions for … Question: Why is the energy sector changing so profoundly? $QLPSRUWDQWUHDVRQLVWKHWUHQGWRZDUGVGHFDUERQLVDWLRQ GXHWRFOLPDWHSURWHFWLRQ7HFKQLFDOGHYHORSPHQWVPHDQ WKDWUHQHZDEOHHQHUJLHVDUHWRGD\RIWHQFKHDSHUWKDQ FRQYHQWLRQDOHQHUJ\HYHQZLWKRXWVXEVLGLHV$QRWKHU GULYHURIWKLVFKDQJHLVGLJLWDOLVDWLRQ&XVWRPHUVH[SHFW LQQRYDWLRQVIURPHQHUJ\FRPSDQLHVWKDWDUHDOUHDG\ FRPPRQSODFHLQRWKHUVHFWRUV Question: What challenges do companies still face? (QHUJ\FRPSDQLHVQHHGWRIRFXVRQIXWXUHVHFWRUVLQ ZKLFKWKH\DUHKLJKO\SURILFLHQWɇVXFKDVRIIVKRUHZLQGRU “Energy com- HQHUJ\UHODWHGVHUYLFHV7KLVZLOOHQDEOHWKHPWRVXFFHHG DJDLQVWVWURQJDQGQHZFRPSHWLWRUVIURPRWKHUVHFWRUV panies need to DQGH[SORLWLPSRUWDQWJURZWKRSSRUWXQLWLHV7KLVDSSOLHV focus on future DERYHDOOWRWKHHQGFXVWRPHUEXVLQHVVEXWDOVRWRWKH DUHDVRILQIUDVWUXFWXUHRUUHQHZDEOHHQHUJLHV sectors in which Question: How will the energy world look in the they are highly future? proficient.” $QLPSRUWDQWWUHQGLVWKHFRXSOLQJRIYDULRXVGLIIHUHQW VHFWRUVRIWKHHQHUJ\LQGXVWU\(OHFWULFFDUVFRXOGEH Frank Klose, XVHGDVVWRUDJHV\VWHPVIRUWKHHOHFWULFLW\JULGZKLOHWKH The Boston Consulting Group DUHDVRIHOHFWULFLW\KHDWLQJDQGJDVFRXOGEHFRPELQHG LQVXVWDLQDEOHUHVLGHQWLDOGLVWULFWV7KHHQHUJ\LQGXVWU\ ZLOOH[SHULHQFHDQRWKHUSHULRGRISURIRXQGFKDQJHGXHWR Frank Klose is a Senior WKLVW\SHRIQHWZRUNLQJ Partner and Managing Director of the strategy consultants The Boston Consulting Group (BCG). One of his specialist areas iss thethhe energyeenneerrggy industry.indu 6 Tailwind The expansion of renewable energies is a central component of the future plans of EnBW. An important role will be played here by wind power – an area in which the company has already realised important projects