Financial Reporting 2021

• Full-year guidance stable and unaltered
• No significant impact of coronavirus pandemic
• Marked reduction in net debt

With a workforce of 25,041 (+3.9%), EnBW generated revenue of €18.72 billion in the first nine months of 2021 (previous year: €13.68 billion) and an operating result (adjusted EBITDA) of €1.97 billion (previous year: €2.06 billion). Earnings were thus down only slightly year on year (by 4.4%). In the preceding quarter, the shortfall had still been 7%. The lower quarterly earnings figure is mainly due to temporary valuation effects – which will cancel out by the end of the year – and to generally poorer wind conditions, both offshore and onshore.

Net debt went down in the third quarter by €3.55 billion to €10.86 billion, a 25% decrease. This was mainly due to higher security margin payments received for trading contracts, payments received under the German Renewable Energy Act (EEG) and an increase in the discount rate on pension provisions. Investment in growth projects, in areas such as renewables and electric mobility, rose around 12% compared with the previous year.

Net profit attributable to the shareholders of EnBW AG went down from €250 million in the previous year’s period to a negative €27 million in the first nine months of 2021. This was mainly due to impairment losses on the generation portfolio recognised at mid-year.

However, these have no impact on the operating business or on the dividend size, the distribution of which is based on adjusted earnings. An offsetting factor was a significant improvement in the financial result due to a gain from marking securities to market.

• Operating result through to end of second quarter temporarily below previous year
• Increased investment in renewables and electric mobility

With a workforce of 24,894 (+5.1%), EnBW generated revenue of €12.65 bn (previous year: €9.80 bn) and an operating result (adj. EBITDA) of €1.48 bn, marking a decrease of 6.8% on Q2 2020 (€1.59 bn). In Q2 2021, the earnings shortfall had still been 13.8%. The lower earnings are mainly due to various temporary measurement effects and also to generally poorer onshore and offshore wind conditions than in Q2 2020.

Net profit attributable to the shareholders of EnBW AG went down from €184.2 m in Q2 2020 to a negative €162.8 m in Q2 2021. This was mainly due to the impairment losses on the generation portfolio announced on 15 July. These have no impact on the operating business or on the amount of the dividend, the distribution of which is based on adj. earnings. An offsetting factor was a significant improvement in the financial result due to a gain from marking securities to market.

EnBW Group’s investment, at €1078.6 m in Q2 2021, was significantly higher than in Q2 2020 (€801.7 m). This mainly relates to bidding success in the seabed area auction for the construction of offshore wind farms in UK. Some 72.9% of total investment was for growth projects such as the expansion of RE and the rollout of charging infrastructure for electric vehicles.