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Financial strategy

Secure profitability, solid investment grade ratings, increasing group value

Investment highlights

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  • EnBW is the only German utility active in the entire energy value chain
  • EnBW is driving the energy transition in its entirety
  • Highly robust business model based on balanced portfolio

Integrated utility driving forward energy transition

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  • Low-risk business profile from regulated grids and renewable energies
  • Stable cash flows
  • Attractive risk-return profile

Robust diversified portfolio with high share of low-risk business

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  • Natural hedge between EnBW’s competitive business areas sales and generation
  • Supply contracts closed on a back-to-back basis
  • Generation margins locked in for up to 3 years in advance for cash flow predictability
  • Long-term PPAs for high cash flow visibility

Hedging of earnings from marketed electricity generation

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  • SBTi approved EnBW’s CO2 reduction targets
  • Coal exit brought forward to 2028
  • Climate neutrality in 2035 by offsetting the remaining residual emissions

Ambitious climate action targets

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  • Financial policy geared towards credit investors' needs and protecting solid credit ratings
  • Dedicated asset liability management for long-term provisions
  • Diversified funding and prudent liquidity management using state-of-the-art systems and tools

Prudent financial policy

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  • State of Baden-Württemberg and OEW (an association of counties) holding more than 93% of share capital
  • Most of the remaining shares are held by other municipal shareholders’ associations in Baden-Wuerttemberg
  • Shareholder structure reflects EnBW’s roots in Baden-Wuerttemberg, one of the economically strongest regions in Europe

Stable government-related shareholder structure

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Financial management


  • Management of financial transactions within the Group finance department in order to minimise risk, optimise costs and increase transparency
  • Deployment of derivates in the operating business generally for hedging purposes only: for example, for forward contracts for electricity and primary energy source trading
  • Interest rate risk management for managing and monitoring interest-sensitive assets and liabilities / Interest rate risk strategy to limit the risk of interest rate changes for the Group
  • Currency management system to monitor foreign exchange risks


  • Payment obligations can be fulfilled without restriction
  • Balanced financing structure
  • Solid balance sheet ratios
  • Solid investment grade ratings
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Key performance indicator for creditworthiness management

The key performance indicator debt repayment potential describes the retained cash flow in relation to net debt. The debt repayment potential measures the ability of EnBW to repay its debts from its current earnings potential.

Debt repayment potential¹


Controlled revenue growth accompanied by solid investment grade ratings

Retained cash flow / net debt

¹ We regularly check whether our target value for the debt repayment potential complies with the current requirements of Moody’s and S&P.

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Positive creditworthiness of high importance

To maintain the future viability of the company, EnBW aims to hold solid investment grade ratings, in order to

  • ensure unrestricted access to capital markets
  • offer reliable opportunities for financing partners
  • be regarded as a dependable business partner in our trading activities
  • achieve the lowest possible capital costs
  • implement an appropriate number of investment projects

Further information

Financing strategy

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Management of financing needs of operating activities separately from the Group’s pension and nuclear obligations

  • Managing financing needs of operating activities
    • Constant assessment of capital market trends with regard to
      • current interest rate environment
      • any potentially favourable refinancing costs
  • Coverage of pension and nuclear obligations using asset liability management model
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Alongside the internal financing capability, we have various financing instruments at our disposal:

Financing instruments as of 31 March 2024

Value0Rounded figures
Debt Issuance Programme (DIP) 0Includes CHF410 m.
Value0Rounded figures
€10.0 bn, thereof €.8.8 bn utilized
US private placement0Issued 9 November 2022; €860.95 m equivalent (€400 m, US$270 m, £168 m, converted as of the reference date of 9 November 2022)
Value0Rounded figures
€0.9 bn
Promissory notes
Value0Rounded figures
€0.5 bn
Subordinated bonds
Value0Rounded figures
€3.0 bn
Value0Rounded figures
€2.0 bn, undrawn
Sustainable syndicated creditline
Value0Rounded figures
€1.5 bn, undrawn; maturity date: 20270Term until the end of June 2027 after exercise of the second extension option for a further year
Commited bilateral credit lines0Term until the end of June 2027 after exercise of the second extension option for a further year
Value0Rounded figures
€3.9 bn, thereof €0.2 bn utilized
Uncommited bilateral credit lines
Value0Rounded figures
€1.9 bn, thereof €0.2 bn utilized
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Other sources
  • EIFO0Export and Investment Fund of Denmark (EIFO). covered bank loan of €0.5 bn with a consortium, partial amount of €0.25 bn utilized
  • Financing activities in the form of bank loans and promissory notes in subsidiaries

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Overview of EnBW’s bonds

Maturities of EnBW’s bonds

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Asset Liability Management Model

Management of financing needs for pension and nuclear obligations
as of 31 December 2023

  • Ensuring timely coverage of the pension and nuclear obligations
  • Coverage of long-term provisions by corresponding financial assets within an economically reasonable period

Core concept of the model
  • Cash flow based model
  • Determining the effects on the cash flow statement and balance sheet over the next 30 years taking into account
    • Anticipated return on financial assets
    • Sector-specific appraisals by external experts on costs for nuclear decommissioning and disposal
    • Actuarial reports on pension provisions
  • Limiting the impact of payments for the pension and nuclear obligations on the operating business to €375 million a year (plus an inflation supplement) by taking funds from the financial assets
  • After full coverage of the considered provisions by the financial assets, no further funds will be taken from the cash flow from operating activities
Investment targets
  • Portfolio strategy considers planned withdrawal of funds from the financial assets
  • Broad diversification of the asset classes
  • Risk-optimised performance in line with market trends
  • Reduction of costs and simplification of administrative processes

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EnBW’s cash flow-based model

EnBW's cash flow-based model

in € m

Corporate strategy

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Sustainable infrastructure partner

Our business portfolio is positioned in three segments:

  • System Critical Infrastructure
  • Sustainable Generation Infrastructure
  • Smart Infrastructure for Customers

The main goal of our EnBW 2025 strategy is to develop a balanced and diversified business portfolio along the entire value added chain via these three growth fields. Our portfolio is also characterized by a high proportion of stable, regulated business and an attractive risk-return profile.

As part of the EnBW 2025 strategy, adjusted EBITDA was planned to increase to €3.2 billion by 2025. Adjusted EBITDA was already €3.3 billion in fiscal year 2022. In line with our current planning, we also expect to exceed the earnings target.

EnBW has updated the 2025 strategy with an outlook to the period up to 2030. Based on our integrated approach, we will rigorously push forward the expansion of the energy infrastructure. Our main focus will be placed on the accelerated expansion of renewable energies and the grid infrastructure, as well as the development of smart products and services for our customers that support the energy transition at home and on the move.

Total investments 2024 - 2026

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Investments 2024 - 2026

In order to continue actively shaping the energy transition, gross investment of €24.5 billion is planned for the 2024 to 2026 period. This represents on average €8.2 billion per year. 15% of this investment will be on existing projects and 85% on growth projects. The majority of the gross investment (83%) will be in the System Critical Infrastructure segment and the expansion of renewable energies. We anticipate that more than 85% of our gross investment will be taxonomy-aligned according to the EU taxonomy.

The investment program of the EnBW Group supports our strategy of expanding renewable energies and ensuring security of supply in the regulated areas of the transmission and distribution grids (electricity and gas), as well as the expansion of charging infrastructure for the benefit of electromobility.

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Total investments 2024 - 2030

Total gross investments around € 40 billion are planned for the period from 2024 to 2030.
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Investments 2024 - 2030

Taking into account these partnerships, we expect total net investment of around €22 billion by 2030. We have already been able to secure almost half of the expected cash returns, especially via the participation model for our He Dreiht offshore wind farm and the investments made by financing partners in the transmission grid operator TransnetBW.

We expect an increase of our adjusted EBITDA by 2030 to €5.5 bn to €6.3 bn:

  • €0.7 bn to €1.0 bn Smart infrastructure for customers
  • €2.3 bn to €2.6 bn System critical infrastructure
  • €2.7 bn to €3.0 bn Sustainable generation infrastucture

The portfolio across these three segments will therefore remain in balance. The share of low-risk adjusted EBITDA is expected to be at least 70%.

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Climate neutrality by 2035

By 2035, we will reduce the company's CO₂ emissions to net zero. In doing so, EnBW will stick to the requirements and targets of the Paris Climate Agreement.

SBTi EnBW CO₂ reduction targets approved. Further information:

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¹ Reduction in Scope 1 and 2 emissions compared to the reference year 2018.

² Achievement of our climate protection targets in line with the 1.5 degree path of the Paris Agreement.

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Further information can be found here.