Karlsruhe. The Management Board of EnBW Energie Baden-Württemberg AG has taken specific decisions to drastically reduce the scope of the Group's holding portfolio. In line with these decisions, the current investment portfolio comprising 395 companies, 299 of which are in the consolidated Group, will be downsized by a total 143 companies. This reduction in the structural complexity of the Group by almost 40 percent is to take the form of mergers, dissolutions, sell-offs (disinvestment) and integration in partnerships. An appropriate solution has been chosen for each of the holdings in question. Many of the necessary measures are to be implemented before the end of 2003.
The above decisions are the first concrete steps the Group will take to achieve the objective of drastically simplifying its structural complexity. They reflect the endeavour to concentrate on core business activities (energy and near-energy services), to eliminate loss-making holdings that cannot be restructured in the short term, to integrate or merge holdings with promising synergistic potentials, and to sell off the Salamander operations in the near future. These measures are aimed at improving the strength and efficiency of the EnBW Group on the operative front as well as increasing transparency. In a second phase, all the companies that do not currently meet the ROI targets of the Group - and which are therefore in need of either operative or structural changes - will be subjected to a critical review.
EnBW CEO Prof. Dr. Utz Claassen welcomes these decisions: "It is right and important that we have wasted no time in following up our announcements with the necessary decisions. We owe it to our shareholders and our employees to adopt a clear-cut strategy geared towards improving our earnings potential: both shareholders and employees need to be assured that our core business strengths will no longer be diluted by almost 100 loss-making holdings. To wait any longer would be uneconomical, unjustifiable and unsocial."