EnBW continues on its path of success: another record result in the first half of the year

Karlsruhe. In the first half of 2006, EnBW Energie Baden-Württemberg AG was able to significantly increase its sales and earnings. According to the ‘Interim Report for the First Half of 2006’ released today in Karlsruhe, EnBW increased its sales by a total of 26.2 percent compared to the first 6 months of last year to 6.530 billion euros. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 11.5 percent or 140.3 million euros to 1.358 billion euros. Earnings before interest and taxes (EBIT) increased by 16.3 percent (+ 141.2 million euros) to 1.005 billion euros. This result saw EnBW exceed the billion euro mark for the first time for EBIT for the first half of a year. Earnings before taxes (EBT) were 952.2 million euros, which equates to an increase of 212.3 million euros or 28.7 more than earnings from the comparable period last year. The consolidated surplus for the first half of 2006 increased by 38.8 percent to 586.3 million euros.

“With these figures, the EnBW Group has achieved the best first-half result of its history and at the same time it has once again confirmed the continuity and robust planning achieved over the last three years,” said Prof. Dr. Utz Claassen, Chairman of the Board of Management of EnBW.

However, the earnings of the first half of 2006 do not yet reflect the regulatory influences of the Federal Network Agency on the network access charges. This influence of the regulation will become visible for the first time in the second half of 2006. EnBW therefore anticipates lower earnings due to regulatory influences for the second half of the year.

EnBW increased its sales in all business segments, although the business segment Electricity contributed about 71 percent and the business segment Gas contributed 24.3 percent to total sales. The increased sales in the business segment Electricity (+ 19.5 percent) were also due to the significant 12.6 percent increase in the sale of electricity. This increase was mainly due to increased sales in the commercial sector and changes to the consolidated group. The amended consolidated group and the fact that we passed on the increased gas procurement prices to customers also led to a 47.1 percent increase in total sales.

Also as a result of the healthy earnings from the first half of 2006, the equity ratio increased from 12.8 percent (Status: 31 December 20051) to 14.2 percent. The reduced operating cash flow of 404.7 million euros was mainly due to a significant change to the working capital in the first quarter in the first instance, such as, for example, higher claims from deliveries and services, but which are not sustainable, and will be able to be significantly reduced again in the course of the whole financial year. There has already been a different trend in the development of the operating cash flow in the second quarter.

The internal EnBW Cost Reduction Programme TOP FIT continued to develop positively. In the first six months of the current financial year, EnBW was once again able to successfully continue with this programme. With regard to the whole of 2006, measures have already been able to be implemented which will result in cumulative savings of approx. 970 million euros. This means that half way through the year EnBW has already almost achieved its objective of realising a sustainable, effective cost reduction of one billion euros by the end of 2006.