EnBW presents the best half-year result in the group's history

Karlsruhe. In the first six months of 2005, EnBW Energie Baden-Württemberg AG generated the best half-year result in the history of the group. According to the half-year report published in Karlsruhe today, EnBW raised its EBITDA in the first half-year 2005 by 20.8 percent to EUR 1,218.1 million, the EBIT by 33.5 percent to EUR 863.8 million and the EBT by 70.4 percent to EUR 745.8 million compared to the equivalent prior-year figures. Group net income for the year from continued operations increased compared to the equivalent half-year period by 81.1 percent and at EUR 424.6 million after the first six months already clearly exceeds the comparable value of the whole of the prior year. Taking the earnings from discontinued operations into account, which had burdened the half-year result of the prior year in particular, group net income in the first half-year of 2005 improved by as much as 147 percent compared to the first half-year of the prior year. In the first half-year of 2005, earnings per share from continued operations were up 68 percent on the prior-year figure.

“This convincing half-year result is the next chapter in the success story that commenced with the realignment of EnBW. With an EBITDA margin of 26.6 percent in the core segment electricity following our cost-cutting measures to date, we have achieved a level which will allow us to successfully shape the strategic issues that lie ahead. In terms of relative speed of improvement we are still well ahead of the competition," says Prof. Dr. Utz Claassen, CEO of EnBW Energie Baden-Württemberg AG.

Not only the earnings ratios developed well; the sales situation of the EnBW group was also highly positive. In the first half-year of 2005, external sales in all segments rose by around EUR 5.2 billion. This is an increase of 13.4% compared to the half-year period of the prior year.

As a result of the improved results of operations in the group, the operating cash flow increased by EUR 58.5 million to EUR 843.1 million in the first half-year. Adjusted for shares of discontinued operations in the operating cash flow, the increase came to EUR 153.8 million. “In the first half-year of 2005 we also consistently pursued our goal to further reduce the financial debt of EnBW. We have succeeded in significantly reducing our net financial debt by EUR 910.5 million or 24.6 percent to EUR 2,789.4 million,�? reported Dr. Christian Holzherr, CFO of EnBW. Since the beginning of the consolidation process, net debt has been more than halved.

Further proof of the positive development of EnBW’s capitalization is the equity ratio that has improved still further. It increased from 10.0 percent as of December 31, 2004 to 13.0 percent as of June 30, 2005. This means that the equity ratio of EnBW, which as of December 31, 2003 had stood at just 6.1%, has more than doubled within a period of just 18 months.