In response to the Energiewende in Germany, we developed our EnBW 2020 strategy in 2013 with the guiding principle “Energiewende. Save. Hands on.“ The main focus of this strategy was the transformation of our business portfolio. The aim was to compensate for the fall in earnings in the Generation and Trading segment with growth in the three other segments: Sales, Grids and Renewable Energies. Sustainability is an integral component of our Group strategy which we developed in 2013 with the target of reaching the same level of earnings in 2020 as in 2012: an adjusted EBITDA of €2.4 billion.
The resolute implementation of the EnBW 2020 strategy has significantly strengthened the future viability of the company. Therefore, we have already achieved our earnings target for 2020 with an Adjusted EBITDA of EUR 2.4 billion in 2019.
Transformation of business portfolio
- We aim to more than double the share of our generation capacity accounted for by renewable energies from 19% (based on the reference year of 2012) to over 40% in 2020. We have increased the capacities of our onshore wind farms significantly in Germany and selected foreign markets, while the same is true for the growth field of offshore wind energy.
- By investing extensively in grid expansion, we are making a substantial contribution to the infrastructure required by the energy system and thus to the security of supply.The overall share of adjusted EBITDA accounted for by the regulated grid business and renewable energies has increased from around 40% (reference year of 2012) to more than 70% in 2019 and has thus already reached the target value for 2020. This will improve the risk-return profile of our company.
- Innovative products and services will become another important pillar of the company’s business.
Investments and divestments
To implement our strategy, we planned total investment of €14.1 billion (reference year of 2012) by 2020. In order to obtain the financial headroom required for such extensive investments, we have significantly extended our divestiture programme through our EnBW 2020 strategy to around €5.1 billion (based on the reference year of 2012).
We realised investments of €14.8 billion and divestitures of €5.1 billion in the period up to and including 2019. The overfulfilment of our investment target was primarily due to the early growth investment used for the acquisitions of the French wind and solar company Valeco and the broadband and fibre optic company Plusnet. The transition from one strategy period to the next is smooth because both transactions will contribute to the EnBW 2025 growth strategy.