Enbw Report 2012: Baden-Württemberg AG (Enbw), a 1 March 2013 Company of the Enbw Group Or Any Shareholder Hotline/ Other Company
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Report 2012 Creating value together – and sustainably Condensed version EnBW Energie Baden-Württemberg AG At a glance With revenue in excess of € 19 billion in 2012 and some 20,000 employees, EnBW Energie Baden-Württemberg AG is one of the largest energy companies in Germany and Europe. We generate, trade in, transport and sell energy and operate in the fields of electricity and gas as well as energy and environmen- tal services. We want to achieve sustainable and profitable growth with a balanced business portfolio and smart energy solutions – to the benefit of our partners, customers, employees and owners. Our home market is Baden-Württemberg and Germany, but we also operate in other European markets. Even in a changing energy market, our primary objectives remain the same: supply reliability, environmental protection and profitability. This is the basis for the optimum energy mix that we strive for. In addition to the use of conventional energies, the increase in energy efficiency and expansion of renewable energies play an important role here. Performance indicators of the EnBW group € millions1 2012 2011 Variance % Revenue Electricity generation and trading 3,977.7 5,418.7 -26.6 Electricity grid and sales 11,860.9 10,742.6 10.4 Gas 2,542.0 1,814.6 40.1 Energy and environmental services 865.3 780.4 10.9 External revenue, total 19,245.9 18,756.3 2.6 Adjusted EBITDA 2,343.1 2,449.0 -4.3 EBITDA 2,293.1 1,809.6 26.7 Adjusted EBIT 1,454.8 1,600.1 -9.1 EBIT 1,275.2 677.8 88.1 Adjusted group net profit2 652.4 647.7 0.7 Group net profit/loss2 473.5 -842.3 - Earnings per share from adjusted group net profit2 in € 2.54 2.65 -4.2 Earnings per share from adjusted group net profit/loss2 in € 1.84 -3.45 - Cash flow from operating activities 856.3 1,747.4 -51.0 Free cash flow 205.8 827.0 -75.1 Recognised net financial liabilities3 4,495.3 5,303.1 -15.2 Capital expenditure 877.4 1,314.9 -33.3 Return on Capital Employed (ROCE) (%) 11.3 11.6 -2.6 Weighted average cost of capital (WACC) before tax (%) 8.7 8.7 - Average capital employed 14,935.5 15,434.1 -3.2 Value added 388.3 447.6 -13.2 Energy sales of the EnBW group Electricity (billion kWh)1 135.4 155.3 -12.8 Gas (billion kWh) 73.1 57.4 27.4 Sustainability Employees1, 4 on average 20,098 20,851 -3.6 Trainees at the core companies (%) 7.0 7.1 -1.4 Women in managerial positions (%) 10.6 10.1 5.0 Industrial safety Number of accidents per one million working hours 6.5 5.3 22.6 Sick rate (%) 4.3 4.3 - Own generation from renewable energies (GWh) 7,230 5,982 20.9 Renewable energies generation capacity (MW) 2,527 2,461 2.7 Environmental protection expenditure 403 487 -17.2 Specific CO2 emissions from own electricity generation (g/kWh) 369 328 12.5 1 Prior-year figures restated. 2 In relation to the profit/loss shares attributable to the equity holders of EnBW AG. 3 Without cash and cash equivalents of the special funds and short-term investments to cover the pension and nuclear power provisions. 4 Number of employees without apprentices/trainees and without inactive employees. EnBW group The EnBW group about the Information Electricity generation and trading With our fully and partly owned power sta- 13,400 MW installed capacity tions, investments and long-term procure- ment agreements, we ensure an efficient and environmentally friendly energy mix 59.1 TWh generation capacity1 from nuclear power, coal, gas, water and other renewable energy sources. € 1,319.7 million adjusted EBITDA Electricity grid and sales TransnetBW GmbH, a wholly owned sub- 58.2 TWh electricity sold sidiary of EnBW, is one of four transmission B2C / B2B system operators in Germany. Further- more, the group has various distribution networks in Baden-Württemberg. We ren- 155,000 km electricity grid der energy and energy-related services to our customers. € 685.7 million adjusted EBITDA Gas The midstream business includes import 57.8 TWh gas sold agreements, import infrastructure, gas B2C / B2B storage, and trading and portfolio manage- ment.The downstream business covers gas transmission, distribution and sales. 16,000 km gas grid € 159.4 million adjusted EBITDA Energy and environmental services This segment comprises energy supply 1.3 million t thermal waste and energy-saving contracting services, disposal capacity grid and energy-related services, ther- mal and non-thermal waste disposal and 3 water supply. 90.3 million m of water sold € 309.6 million adjusted EBITDA Share in adjusted EBITDA2 56.3 % Electricity generation and trading 29.3 % Electricity grid and sales 6.8 % 13.2 % Energy and Gas environmental services 1 Own generation includes long-term procurement agreements and generation from partly owned power stations. 2 Holding/consolidation (share of -5.6%) not listed in the table. Creating value for people, the planet and our company We are actively and dynamically shaping the future of our company, EnBW. With our products and services, our innovative power and our technical plant and equipment we are ready for the new developments in the energy landscape and are actively shaping the new energy concept introduced in Germany. We are creating today the basis for sustainable, profitable business in the future. This is not feasible without the people who are to achieve and benefit from it: our employees, our customers and shareholders and the many other stakeholders associated with our company. We assume responsibility not only for society, we have also committed to responsibility for the environment. Climate conservation and the sparing use of resources are integral components of our corporate goals. For we know that our future lies in combining business success with environmental and social responsibility. _ 1 About this report Bringing values to life, making them visible and measurable We have started bringing together our financial and sustain we will provide a complete and true picture of EnBW. Our cor ability reporting in this integrated report 2012. The reporting porate values will become transparent, clear and measurable on sustainability is based on the requirements of the Global benchmarks. Reporting Initiative (GRI) and the German Sustainability Code (GSC). Our aim is to present our economic, ecological and > For further information on sustainability at EnBW: social performance in one integrated report in future. This way, www.enbw.com/sustainability. Annual report www.enbw.com/ report2012 Report 2012 Sustain 2 become 1 ability report This integrated report contains a condensed version of the Please note that the content of this report is intended for EnBW consolidated financial statements without the notes information purposes only and does not constitute an offer to the financial statements. The full consolidated financial or investment recommendation and the important note on statements and other financial reporting documents are page 166. published at > www.enbw.com/report2012. Our actions are geared towards strategic principles Safeguarding low-carbon Creating innovation and growth generation capacity Establishing local energy solutions Designing sustainable processes Taking employees and corporate social responsibility into account 2 _ Contents Creating value together – and sustainably 4 Interview with the CEO Key topics of the fiscal year 8 The Board of Management 22 Harnessing wind onshore 26 Rheinhafen power station, Karlsruhe: 10 Report of the Supervisory Board (condensed) Upholding reliability in the future 30 Smart grid technology for the new energy concept in Germany Corporate and sustainability strategy 34 Less is more: Never losing sight of energy efficiency 14 Creating value: step by step 38 Heat supply for the winter: 15 Proactive and based on partnership: EnBW’s new gas storage facility Our course for the future of energy 16 Low-carbon and climate-compatible energy 18 A one-stop shop: 42 Combined management report We provide local energy solutions of the EnBW group and EnBW AG 20 Sustainability strategy 143 Condensed financial statements of the EnBW group 152 Corporate governance 158 Service _ 3 Interview with the CEO › Dr. Mastiaux, you have taken on the role of › Does this mean that the energy world of CEO at EnBW at a time when the whole energy tomorrow will be completely different from industry is in a state of dramatic change. What the one of today? do you see as the most important lines of development? Frank Mastiaux: Absolutely. I see a paradigm shift in the energy landscape, calling into Frank Mastiaux: The topic of energy is at the question the traditional business model of centre of intense public debate – more so now many energy companies. Until recently, the than ever before – thereby reflecting a radical industry’s value added chain was defined as change in our energy landscape. This change starting with generation and oriented towards is characterised by the rapid transition from distribution and sales. Market power was nuclear and conventional energy generation based on ownership of generation capacities to renewable energies. In Germany today, we and grids. The flow along the value added have around 450 central power stations but chain will change direction in future. Only the number of local generation facilities is those companies that consistently take into 1.3 million. This illustrates the changes in the account all business activities from a customer generation structure. The market environment has also continued to change. New market par- ticipants are trying to establish themselves, thereby increasing competitiveness as well as the demands placed on grid management.