Enbw Annual Report 2005
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Annual Report 2005 Energy generates success At a glance EnBW group1 2005 2004 Variance % External sales Electricity € millions 8,150.2 7,088.9 +15.0 Gas € millions 2,101.7 1,540.6 +36.4 Energy and environmental services € millions 517.4 494.8 +4.6 External sales, total € millions 10,769.3 9,124.3 +18.0 EBITDA € millions 2,054.3 2,044.5 +0.5 EBIT € millions 1,318.5 1,242.5 +6.1 Result of continuing operations € millions 522.5 357.7 +46.1 Earnings per share from continuing operations € 2.17 1.57 +38.2 Cash flow from operating activities € millions 1,329.9 1,545.7 -14.0 Free cash flow € millions 1,070.6 1,330.8 -19.6 Capital expenditures on intangible assets and property, plant and equipment € millions 547.0 417.7 +31.0 Return on Capital Employed (ROCE) % 13.4 11.7 +14.5 Cost of capital rate (WACC) before tax % 9.0 9.0 – Average capital employed € millions 9,353.7 9,400.8 -0.5 Value added € millions 407.5 251.9 +61.8 Energy sales of the EnBW group1 2005 2004 Variance % Electricity billions of kWh 106.7 100.9 +5.7 Gas billions of kWh 88.6 82.9 +6.9 Employees of the EnBW group1,2 2005 2004 Variance % Employees (annual average) 17,926 19,881 -9.8 1 The prior-year figures have been adjusted (see comments on the change in reporting in the notes). 2 Number of employees without apprentices/trainees and without inactive employees. Annual Report 2005 Energy generates success This annual report’s photo story features the successful inter- action of mankind and technology to generate energy in our region. We present our conventional and nuclear power plants, introduce our employees who operate these power plants safely and en- sure reliable production of electricity, and give an impression of the countryside and architecture in our home market of Baden- Württemberg where we have strong roots. Altbach/Deizisau combined heat and power station and surroundings Future-oriented statements: This report contains statements relating to the future that are based on current assumptions and projections of the manage- ment of EnBW. Such statements are subject to risks and uncer- tainties. These and other factors mean that the actual events, financial position, development or performance of the company may diverge materially from the esti- mates made here. EnBW assumes no obligation of any kind to up- date future-oriented statements or to adjust them to reflect future events or developments. The annual report in German, English and French can also be downloaded from the internet. In case of doubt the German version shall prevail. 2 Philippsburg nuclear power plant Contents Summary Further information > 4 Home market > 108 Collaboration between Baden-Württemberg EDF and EnBW > 6 Vision: What we want > 110 Electricity segment > 7 Brief portrait: Who we are > 114 Gas segment > 8 Locations: Where we operate > 116 Energy and environmental > 10 Structure: services segment How we are organised > 119 Foreign investments > 12 Top issues: of EnBW in central and Where we are concerned eastern Europe > 124 Knowledge management at EnBW Board of Management > 128 Partners for Innovation and Supervisory Board > 130 Assuming responsibility: EnBW as corporate citizen > 22 Letter to our shareholders > 26 Board of Management > 28 Report of the Supervisory Board Financial statements > 34 Supervisory Board of the EnBW group > 36 Corporate governance report > 138 Income statement > 139 Balance sheet EnBW share > 140 Cash flow statement > 142 Statement of changes > 46 The EnBW share in equity > 144 Notes to the financial statements Combined > 195 Audit opinion management report > 196 Additional information of the EnBW group to the financial statements and EnBW AG > 54 Corporate strategy Tables and summaries > 56 Company and market environment > 60 Economic environment > 210 Five-year summary > 68 Company situation > 212 Glossary of the EnBW group > 216 Financial calendar/Contact > 80 Subsequent events > 217 Picture credits > 81 Value-based management system > 218 Index > 84 Employees > 88 Research and development > 90 Risk report > 96 Forecast report 3 Lake Mummelsee Lake Schluchsee Reichenau island Schwetzingen Palace Bruchsal Palace 4 Home market Baden-Württemberg Tradition and progress, regional pride The third largest federal state of and an open mind, economic dynam- Germany with about 10.7 million ics and a human society are facets inhabitants and covering an area of of the state of Baden-Württemberg just under 36,000 square kilometres, and its people. Baden-Württemberg Baden-Württemberg is one of the emerged from the unification of leading technology regions in Europe. Württemberg-Baden, Württemberg- It has a high level of exports, an Hohenzollern, and Baden as decided exemplary density of research insti- by popular vote on April 25, 1952. tutes and a high share of employees in high technology and future indus- tries. Baden-Württemberg’s out- standing features include a varied countryside and excellent environ- mental data as well as boasting a lively, international cultural and arts scene. Ulm Cathedral Holy Ghost Church, St. Martin’s Parish Church, Heidelberg Biberach 5 Vision What we want > 4. We have already implemented numerous targets and strategies to be the most focused market player derived from our vision successfully, rapidly and consistently. We in our industry that bundles its strengths most effectively and does are proud of these achievements, but we will not rest on our laurels, the important things the right way. and will tackle the important tasks that lie ahead of us with the > 5. warranted attention and ambition. Our visions are reflected in our to develop the strategic alliance with everyday actions. Our annual report shows examples of how we EDF into a model and symbol of pan- European collaboration within the live our visions and realise our targets each day. America-Europe-Asia triad. > 6. to become the market player in our industry with the highest relative earn- ings power. We want > 7. > 1. to be the number one in terms of our to be the market player in our indus- ability to adapt rapidly to a dynamic try with the strongest regional base business environment. and responsibility. > 8. > 2. to be the market player which does to reinforce, develop and expand our greatest justice to its social and eco- number three position in the indus- logical responsibility. try in Germany, to pursue – compared to the competition – the most consis- > 9. tent synergetic multi-brand strategy to participate actively in the develop- and to achieve the highest levels of ment of the future energy-mix and customer satisfaction. in the future development of energy policy and business in general and to > 3. intervene appropriately, clearly and to develop the existing perspectives constructively. for central and eastern Europe signifi- cantly. > 10. to be the number one in knowledge management to ensure the best pos- sible support for and development of the potential of our people. 6 Brief portrait Who we are With some five million customers, Following the liberalisation of the EnBW Energie Baden-Württemberg AG electricity market, we quickly posi- with its headquarters in Karlsruhe is tioned ourselves in the competition the third largest energy company in and were one of the first energy com- Summary Germany. In 2005, EnBW generated panies to offer electricity through- annual sales of approx. € 10,769.3 mil- out Germany. As pioneers and fore- lion with around 17,800 employees. Our runners on the energy market, we core activities focus on the segments give impetus for scientific research electricity, gas as well as energy and and development. In the interest of environmental services. sustainability, we see ourselves as an economically, socially and ecological- Traditionally, we are firmly rooted in ly responsible company. We want Baden-Württemberg. We want to be our actions to be characterised by the market player in our industry honesty, commitment and consis- with the strongest regional base and tency at all times. By developing new responsibility, also in the future concepts and ideas, we play an active (Vision No 1). Beyond our activities part in shaping the energy policy of in Baden-Württemberg, we also oper- the future through current legisla- ate throughout Germany and in tion. We endeavour to do justice to other markets of central and eastern our responsibility for future gener- Europe. In future, we will continue to ations. focus on our core competencies and supply our customers reliably and competently with energy and ener- gy-related services. The close proxi- mity to our customers and their loy- alty are ideal prerequisites and also an incentive for us to continuously improve our distribution structures, to refine our product range in accor- dance with the requirements of our customers and to enhance our per- formance along the whole value- added chain. Hornisgrinde transmitter Wangen Vineyards on the Upper Rhine plateau 7 Locations Where we operate Berlin Wroclaw Dresden Rybnik Düsseldorf Warsaw Karlsruhe1 Stuttgart Biberach Prague Poland Germany Czech Republic Baden- Württemberg Switzerland Austria Hungary Budapest Miskolc Rheinfelden Visonta Visp Maria Enzersdorf 1 The headquarters of all major shareholdings of EnBW Energie Baden-Württemberg AG are presented from page 202 onwards. 8 Power station locations, own generation, investments, purchase and supply agreements (selection) Hesse Lippendorf (Saxony) Main Bexbach (Saarland) Itter Summary Rhineland- Palatinate Mannheim Obrigheim1 Philippsburg Jagst Cattenom Kocher Neckar power stations Heilbronn