EnBW AGM: EnBW strengthens its generating position and grows at home and abroad

• EnBW increases its generating position in Germany by 2000 MW
• Turkey: Wind power plant in operation, hydropower station under construction

Karlsruhe. EnBW Energie Baden-Württemberg AG is strengthening its generating position sustainably in Germany and is successfully implementing its international strategy. For example, in just the last few months EnBW has increased the generation capacity available to it in Germany by around 2000 MW. "We will further strengthen our power station park in future. Our new construction project RDK 8 is progressing well and is expected to start generating power by New Year 2012. This year, we will generate the first electricity at our newly constructed hydroelectric power station in Rheinfelden and in our EnBW Windpark Baltic 1, in the German Baltic Sea," said Hans-Peter Villis, Chairman of EnBW at the EnBW AGM.

And EnBW is consistently expanding renewable energies: The Supervisory Board of EnBW yesterday approved the first investments for the second EnBW offshore wind farm in the Baltic Sea, EnBW wind farm Baltic 2 (previously Kriegers Flak). With the corresponding conditions, up to 300 MW should be installed. Consequently, EnBW Baltic 2 would be around six times larger than EnBW Baltic 1.

"Our successes of tomorrow are the result of our investments today," explained Villis. In no later than 10 years, EnBW wants to generate around 20 percent, or more than 14 billion kilowatt hours of its electricity from renewable sources. "In 10 years, we calculate we will be able to supply around 5 million households with electricity from renewable energies. This roughly corresponds to the number of households in all of Baden-Württemberg," says Villis.

With its investments, EnBW is setting the course for long-term and sustainable growth. It relies here on a broad energy mix, which includes atomic energy, conventional energy generation and renewable energies. For EnBW, nuclear power continues to be an important component of this energy mix. Base-load capable, and thus secured power station output, is a significant prerequisite for the further expansion of renewable energies, which EnBW is also driving forwards consistently.

Success in Turkey:

The first wind farm is already generating electricity – another hydropower station under construction.

For example, it is expanding its first wind farm in Turkey. With a total output already in operation of 45 MW, the onshore wind farm will be connected to the grid in the coming weeks with an additional 15 MW. In addition, EnBW is already building a second power station in Turkey: A run-of-the-river power station with a planned output of 50 MW. Commissioning is planned for late 2010. The investment volume totals around Euro 77 million. These power stations are the first projects of the joint venture founded around one year ago with the Turkish industrial company Borusan Holding.

Operative strengths form the basis of the investment programme.

By 2012, Euro 7.9 billion should be invested.

In order to implement this strategy and to secure the existing business, EnBW is planning to invest a total of Euro 7.9 billion gross between 2010 and 2012. Around two thirds of this investment is planned for growth projects. In 2009, EnBW invested around Euro 4.4 billion, more than ever before in the company's history.

The operative strengths of EnBW and the overall satisfactory group results for 2009 form the basis here. Consequently, EnBW was able to keep earnings before revenue taxes and interest (Adjusted EBIT) constant compared to the previous year at Euro 1,793.9 million. Based on the share of the profits of the shareholders of EnBW, the adjusted group profit - adjusted for special effects - fell in 2009 by Euro 220 million compared to the previous year to Euro 879 million. This is a decrease of 20 percent. This corresponds to earnings per share of Euro 3.60.

The operating cash flow increased compared to the previous year, above all because of a positive development in working capital, by 60.3 percent to Euro 2.4 billion. In view of the increased operating cash flow, the free cash flow in 2009 also surpassed the previous year's level by Euro 888 million and reached Euro 1.3 billion.

Economic crisis has impacted on the overall result.

Successful counter-steering leads to a satisfactory overall result.

"In view of the fact that the economic crisis has impacted on the overall result by around Euro 250 million, EnBW overall successfully survived the economic crisis in 2009 and has been able to achieve a satisfactory overall result," says Villis. "In the past, we have concentrated strategically on our core business. This was an important requirement for being able to react decisively and successfully to the economically-related fall in demand."