Under international financial reporting standards (IAS 36), EnBW is required to test assets for impairment on a regular basis and when there is any indication of impairment. In preliminary work for preparation of the half-year financial statements as of 30 June 2021, EnBW identified indications of impairment in the consolidated financial statements in the amount of approximately €0,95 billion in the Sustainable Generation Infrastructure segment. The impairment losses mainly relate to the coal-fired power plants. Wind farms are also affected to a lesser extent. In addition, provisions for onerous contracts under IAS 37 have to be increased by €300 million in connection with contracts for bought-in electricity that have ceased to be profitable. EnBW publishes its Six-Monthly Financial Report on 29 July 2021.
The recognition of these special charges totalling €1.25 billion in the 2021 half-year financial statements is mainly due to reduced expectations for future cash flows, primarily in the conventional generation business due to expected increased climate change mitigation requirements.
The special charges reduce the non-operating result and do not affect cash flows in the half-year financial statements. They also have no impact on the basis of calculation for the dividend. This is calculated on the basis of adjusted Group net profit (Group net profit adjusted for special items). The ability to distribute a dividend for the 2021 financial year is unaffected.
The stated one-off effects do not result in any change to the full-year adjusted EBITDA earnings guidance for 2021.