Key performance indicators
The implementation of the EnBW strategy 2020 is ensured by a holistic target and control system. This system expresses a comprehensive view of the company's performance and it strengthens integrated thinking at EnBW.
Based on EnBW’s strategy 2020, the integrated corporate management approach is documented through integrated reporting. With the presentation of financial and non financial corporate objectives, which are measured through key performance indicators, EnBW promotes integrated thinking internally and underlines the relevance of a comprehensive performance and stakeholder orientation.
For the target and control system, financial and non financial indicators were defined in five dimensions (finance, strategy, customers and society, employees, and environment) - the key performance indicators. These indicators measure the degree of target achievement and provide important impulses for corporate governance.
EnBW Integrated annual report 2018
Finance
Securing our profitability. Our primary goal is to secure our financial profitability. Our operating result – measured on the basis of adjusted EBITDA – should reach 2.3 to 2.5 billion euro in 2020. We will thus return to the level achieved before the Energiewende.
Maintaining a high level of financial discipline. By limiting net investment to the level of retained cash flow, we are committed to maintaining financial discipline irrespective of interest rate-related volatility. The goal is a solid investment grade rating.
Increasing the value of the company. Our declared long-term goal is to increase the value of the company and generate value for our stakeholders. This is the case when the return on capital employed (ROCE) is higher than the required cost of this capital.
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Goal
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Key performance indicator
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2018
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Target in 2020
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|---|---|---|---|---|
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Secure profitability
|
Adjusted EBITDA in € billion
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2.2
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2.3-2.5
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The operating result is to return to the average
level achieved before the Energiewende. The total regulated business (Grids and Renewable Energies segments) together contributes around 70% to this result. |
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High level of financial discipline
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Internal financing capability in %
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93.2
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≥ 100
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The level of net fi nancial debt is controlled
by limiting net investment to the level of adjusted retained cash fl ow. The Group can thus finance its own repositioning internally. |
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Increasing Value Group
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ROCE in %
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6.5
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8.5-11
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Return on capital employed (ROCE) is higher
than the cost of capital. EnBW is creating value for its stakeholders. |
Strategy
The adjusted EBITDA is the earnings before the investment and financial results, income taxes and amortisation and adjusted for non-operating effects. Adjusted EBITDA is a key performance indicator for the finance goal dimension and the key performance indicators for the strategy goal dimension, which describe the shares of adjusted EBITDA accounted for by the segments, are derived directly from it.
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Goal
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Key performance indicator
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2018
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Target in 2020
|
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|---|---|---|---|---|
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Share of result accounted for by “Customer
proximity” / Sales |
Share of overall adjusted EBITDA in € billion / in %
|
0.3 / 12.5
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0.4 / 15.0
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The operating result for the Sales segment
doubles from € 0.2 billion (reference year: 2012) to € 0.4 billion in 2020 and represents around 15% of the Group operating result. Innovations make this possible. |
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Share of result accounted for by Grids
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Share of overall adjusted EBITDA in € billion / in %
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1.2 / 54.5
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1.0 / 40.0
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The operating result for the Grids segment
increases by 25% from € 0.8 billion (reference year: 2012) to € 1.0 billion in 2020 and represents around 40% of the Group operating result. The share accounted for by stable regulated business is expanding. |
|
Share of result accounted for by Renewable
Energies |
Share of overall adjusted EBITDA in € billion / in %
|
0.3 / 13.8
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0.7 / 30.0
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The operating result for the Renewable Energies segment increases by 250% from
€ 0.2 billion (reference year: 2012) to € 0.7 billion in 2020 and represents around 30% of the Group operating result. EnBW becomes more sustainable. |
|
Share of result accounted for by Generation
and Trading |
Share of overall adjusted EBITDA in € billion / in %
|
0.4 / 19.9
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0.3 / 15.0
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The operating result for the Generation and
Trading segment falls by 80% from € 1.2 billion (reference year: 2012) to € 0.3 billion in 2020 due to changed framework conditions and only represents around 15% of the Group operating result. |
Customers and society
We use three key performance indicators in the customers and society goal dimension.
Improving our reputation. In view of the radical changes to the energy landscape, successful corporate growth as an energy company requires social acceptance. The Reputation Index reflects the diverse range of activities, influencing factors and assessments of a variety of stakeholder groups.
Customer proximity. This key performance indicator is used to assess the satisfaction of our private end customers with whom we have a direct customer relationship. The information is compiled using comprehensive customer surveys about the brands EnBW and Yello conducted by an external service provider. The expected values in 2020 will reflect a high level of customer loyalty.
Supply reliability. Providing a reliable and safe supply of energy to our customers has the highest priority. SAIDI (System Average Interruption Duration Index) serves as the key performance indicator for supply reliability. It describes the average length of the supply interruptions experienced annually by each connected customer. SAIDI includes all unscheduled downtimes experienced by the end consumer that last longer than three minutes.
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Goal
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Key performance indicator
|
2018
|
Target in 2020
|
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|---|---|---|---|---|
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Reputation
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Reputation Index
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51.3
|
55.4
|
In parallel with repositioning its business model,
EnBW aims to continuously improve its reputation. |
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Customer proximity
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EnBW/Yello Customer Satisfaction Index
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120 / 152
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>136 / >159
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EnBW and Yello customers are satisfi ed customers with a high level of customer loyalty. EnBW and Yello are organisations strongly oriented towards customers and meet the needs and wishes of their customers through tailored solutions and products.
|
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Supply reliability
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SAIDI (electricity) in min./year
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17
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<25
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Maintaining the quality of supply to its customers is of central importance to EnBW in the further development of the grids of its grid subsidiaries. The high degree of supply reliability in the grid area operated by EnBW is based on comprehensive investment in grids and plants and our abundant system expertise.
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Employees
We want to be an attractive employer. It is only in this way that we will permanently possess the core expertise within the company that is essential for the success of our business processes. At the same time, we are committed to the concept of sustainability and take our responsibilities to employees and society seriously.
Employee commitment. The Employee Commitment Index (MCI) reflects the degree to which employees identify with EnBW. The index value is ascertained as part of an employee survey. It comprises, for example, satisfaction with the working conditions, loyalty to the company and trust in its future viability. Our target is to achieve an index value of 65 points by 2020, meaning we will rank amongst the top third of companies in Germany.
Occupational safety. The LTIF indicates how many accidents at work led to at least one day of absence, based on one million hours worked. This key indicator takes all employees, except temporary agency workers, of the EnBW Group into account. Our goal is to improve every year on the corresponding figure in the previous year until 2020.
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Goal
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Key performance indicator
|
2018
|
Target in 2020
|
|
|---|---|---|---|---|
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Employee commitment
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Employee Commitment Index (MCI)²
|
62
|
65
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The commitment of our employees to EnBW is
very strong and there is faith in the future viability of the company. |
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Occupational safety
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LTIF³
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2.3
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≤ previous year
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The number of accidents at work and the resulting days of absence remains stable or is falling.
|
Environment
The expansion of renewable energies has the highest priority for our own electricity generation. We measure this goal using installed output from renewable energies as a key performance indicator. Alongside a focus on increasing the proportion of renewable energies the inclusion of the new key performance indicator CO₂ intensity reflects the special importance of climate change as a social, political and also economic challenge.
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Goal
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Key performance indicator
|
2018
|
Target in 2020
|
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|---|---|---|---|---|
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Expand Renewable Energies (RE)
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Installed output of RE in GW and the share of the generation capacity accounted for by RE in %
|
3.7 / 27.9
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5.0 / > 40
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The share of the generation capacity accounted for by renewable energies has doubled compared with 2012. Onshore and offshore wind power and hydropower are at the forefront of this development.
|
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Climate protection
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CO₂ intensity in g/kWh
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553
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-15 % to -20
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EnBW actively contributes to climate protection by successively reducing the CO₂ intensity of its own generation of electricity (excluding nuclear power) by 15% to 20% by 2020 compared to 606 g/kWh in the reference year 2015.
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