Energy Supply for a New Era
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EWE Aktiengesellschaft Tirpitzstrase 39 26122 Oldenburg Germany www.ewe.com ENERGY SUPPLY FOR A NEW ERA ANNUAL REPORT 2015 GROUP KEY FIGURES | T 001 in millions of euros 2015 2014 Change in % Sales 7,819.3 8,134.2 -3.9 Operating EBITDA 864.0 849.2 1.7 Operating EBIT 428.1 427.5 0.1 EBIT 212.0 354.7 -40.2 Result for the period -9.4 146.3 -106.4 Cash outflows for capital expenditure (total) 666.9 721.4 -7.6 Cash flow from operating activities 708.2 770.3 -8.1 Balance sheet total 9,744.3 9,800.9 -0.6 Equity ratio in % 18.0 23.3 -22.7 Net financial position 4,237.1 4,120.7 2.8 Employees (on average) 8,855 9,154 -3.3 Full time employees (FTE) 8,465 8,538 -0.9 The accounting methods applied may result in rounding differences of +/- one unit (euro, per cent, etc.). OPERATING EBIT IN 2015 Earnings remained stable at the previous year’s level in millions of euros 2011 179.3 … we made changes to the organisa- 2012 512.7 tional structure of the group and made 2013 adjustments to the management and 497.9 2014 leadership model. This resulted in a new 425.4 segment structure. 2015 428.1 1 ENERGY SUPPLY FOR CONTENT A NEW ERA U2 Group Key Figures 02 Our business After the liberalisation of the electricity and natural gas markets and in the middle of the 2015 MAGAZINE ‘German energy turnaround’ (the transition from fossil fuels to renewable energy sources and the 08 Interview with Matthias Brückmann, Chairman of the Board of Management phasing out of nuclear energy), the energy sector of EWE AG is now undergoing the third transformation within 14 Understanding and using digital data 30 years. 18 Efficiently expanding the use of And EWE is playing an active role in this renewables process – because changes also bring with them 22 Managing grids in an intelligent manner new opportunities and prospects. 26 Further reducing energy consumption The digitisation of our markets is a challenge that 30 A changing market – changing companies we approach from a long-term and sustainable perspective to the benefit of our company. 38 Foreword by the Chairman of the Board of Management In this context, renewable sources of energy 42 Report from the Supervisory Board continue to play a major role, as does the development of intelligent grids and networks. 44 Investor Relations What should be done with the steadily growing 46 Sustainability mountains of data? And what new opportunities do new partnerships offer? 49 Group management report 2015 93 Consolidated financial statements 2015 Reducing energy demands is another challenge and remains a key goal. After all, Germany has set 191 Annual financial statements of EWE AG for 2015 the target of cutting carbon dioxide emissions by 195 Service 80 per cent by the year 2050. U3 5-year financial summary EWE Group A new era of supplying energy is dawning. In the magazine for this year’s annual report, you will learn how EWE is preparing for this new era, how employees view the changes and which key issues we are particularly focussed on. EWE AG Annual Report 2015 2 OUR BUSINESS OUR BUSINESS WHAT WE DO EWE GROUP (as of 20.04.2016) At EWE, around 9,000 employees generate annual revenue of 8 billion euros – this makes Energieverband Weser-Ems-Energie- EnBW Energie Baden- Elbe-Weser us one of the largest municipal companies in beteiligungen GmbH Württemberg AG Beteiligungsholding GmbH Germany. Our customers in north-west Ger- many and Brandenburg and on Rügen benefit from innovative energy products and powerful telecommunications. EWE has also made a 64% 20% 6% name for itself as a reliable provider and trend- setter in modern energy markets in Poland and Turkey. The Group headquartered in Oldenburg EWE Group has its own production capacities from both (10% own shares) renewable and conventional energy sources. In Renewables, Group Central Sales, Services International swb addition, the companies of the EWE Group Grids and Division and Trading operate advanced and safe networks for Gas storage electricity, natural gas and telecommunica- tions. Our portfolio is rounded off with Germany-wide IT solutions. Holdings of Ems-Weser-Elbe-Versorgungs- und Entsorgungsverbands (Members: 17 administrative districts and four cities) Segments with operative business activities EMPLOYEES TELECOMMUNICA- ELECTRICITY GAS CUSTOMERS (2014: 9,153) TIONS CUSTOMERS CUSTOMERS (2014: 1.7 mio.) (2014: 604,000) (2014: 1.3 mio.) 8,854 615,000 1.3 mio. 1.7 mio. ENERGY FOR TOMORROW Shaping the German energy turnaround with the local population – this is EWE’s goal as a regional service provider. We are a municipal company that combines the expertise for intelligent energy systems with energy, telecommunications and IT. In the town of Zetel in Lower Saxony, Windpark Spolsen produces enough electricity to meet 80 per cent of the local need with 2 plants. Since 2013, EWE has operated the wind park with municipal participation. EWE AG Annual Report 2015 OUR BUSINESS 3 POLAND 2 3 Warsaw Warsaw 1 Warsaw 2 WHERE WE ARE REPRESENTED 4 GERMANY GERMANY 5 1 Oldenburg (Headquarter) 2 Region Brandenburg/Rügen TURKEY 6 POLAND 3 Poznań (Headquarter) TURKEY 4 Istanbul (Headquarter) 5 Bursa 6 Kayseri EMS-WESER-ELBE BREMEN, GERMANY BRANDENBURG/RÜGEN TURKEY/POLAND • Combined offer of • The swb Group supplies • Establishment of a • Active in Turkey since power, natural gas and the state with energy, comprehensive supply of 2007: Supplying natural telecommunications drinking water and tele- natural gas since 1990 gas in two cities of over • Efficient network communications • Natural gas pipeline net- a million inhabitants (80,000 km for power, • One of the largest regional work of around 14,000 km (Bursa und Kayseri) 55,000 km for gas and energy suppliers in the with 180,000 homes • Own trading company 37,000 km for tele- country and generates its connected to the network for power and gas as well as communications) own power and heat • Natural gas storage with service company for energy • Pioneer in the field of • Has belonged to the two underground gas consulting as a key player renewables with a main EWE Group since 2009 storage facilities for more driving further growth focus on wind power supply security • Solid customer base in Poland: Market entry in 1999 2015 2015 2015 2015 • Brought new services • Started sale of the • Celebrated 25-year • Entering the telecommuni- (e-mobility, light contract- EQOO house storage company anniversary cations market by ing, smart home) to the system to generate • New heat concept purchasing the telephone market own PV power supply launched for the city company Millenicom • Broadband expansion • Smart meter: 93,000 districts (Istanbul) being pushed forward: electrical meters on the • Customer Advisory Council • Growth of the customer high-speed Internet grid installed by wesernetz strikes a positive balance base abroad to over possibly available to one • Start-up of new gas and goes into the next 900,000 customers million households by the and steam turbine plant round • Initial success on the end of 2016 expected in 2016 power market in Poland • Enera consortium receives and Turkey funding approval as model region for Smart Energy Showcases EWE AG Annual Report 2015 WER WIR SIND UNSER GESCHÄFT EWE AG Annual Report 2015 2015 MAGAZINE ENERGY SUPPLY FOR A NEW ERA 6 CONTENT 08 INTERVIEW 22 MANAGING GRIDS IN AN INTELLIGENT MANNER 08 INTERVIEW WITH THE CHAIRMAN OF THE BOARD OF MANAGEMENT 14 Interview with Matthias Brückmann UNDERSTANDING AND USING DIGITAL DATA 14 UNDERSTANDING AND USING DIGITAL DATA Everything is new: digitisation will change the energy world 7 26 FURTHER REDUCING ENERGY CONSUMPTION 30 A CHANGING MARKET – CHANGING COMPANIES 18 EFFICIENTLY EXPANDING THE USE OF RENEWABLES 18 EFFICIENTLY EXPANDING THE 26 FURTHER REDUCING ENERGY USE OF RENEWABLES CONSUMPTION The energy market – between a breath of Still room for improvement – about the fresh air and headwinds responsible use of energy 22 MANAGING GRIDS IN AN 30 A CHANGING MARKET – INTELLIGENT MANNER CHANGING COMPANIES Overcoming the complexity of feeding “I am going to learn new things” – in power and power transmission an interview on change and communication 8 INTERVIEW WITH MATTHIAS BRÜCKMANN CHAIRMAN OF THE BOARD OF MANAGEMENT OF EWE AG Matthias Brückmann, chairman of the Board of Management of EWE AG, discusses the previous year, the current situation as well as the future of the company. Mr Brückmann, which of EWE’s services Let’s stay on the topic of satisfaction and do you use personally? talk about EWE’s previous business year. Almost all of them – energy, so power and Declining revenue in your home energy natural gas. Communication with receivers market. Write-downs on conventional on each floor. I think I use everything we power plants, unpredictable weather have to offer. conditions. How satisfied can you be with 2015? And are you satisfied with them? Well first off, we are talking about an indus- Yes, very. try trend here. The money isn’t growing on trees for anyone at the moment. It was a difficult year. A year full of changes, but once again, we’re talking about the entire industry. In the end, I think we posted a good operating EBIT that was stable year The detailed interview can be found over year. In that regard, I’m very satisfied. online at: And I’m particularly satisfied with our www.ewe.com/interview_brueckmann employees’ performance – they put in a significant amount of time, energy and hard work to achieve this result. EWE makes the following claim about itself: We are the first company in Germany to tap the joint potential offered by energy, telecommunications and IT.