Financial and non-financial key performance indicators and targets

• 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.
• Managing the financial profile. By limiting net investment to the level of the adjusted retained cash flow, we are committed to maintaining financial discipline irrespective of interest rate-related volatility. The goal is a solid investment grade rating. The key performance indicator internal financing capability will be replaced by the new key performance indicator debt repayment potential from 2021 on. This is because it will not be possible to finance the growth phase that starts in 2021 exclusively with our own funds. Therefore, we will manage the financial profile of EnBW from 2021 using the debt repayment potential (retained cash flow in relation to net debt).
• 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.

• 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.
• 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.
• 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.
• 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.

• 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 specifies the average length of supply interruption in the electricity distribution grid experienced annually by each connected customer. SAIDI includes all unscheduled interruptions to supply that last more than three minutes for the end consumer.

• Expand renewable energies (RE).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.
• Climate protection. 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.

Since November 2020, we have been using a redesigned employee survey (EnMAB) to measure the People Engagement Index (PEI) as a new key performance indicator. The PEI allows us to draw conclusions not only on the satisfaction of employ-ees, but also on how motivated and engaged they are in their work at EnBW. Before the 2020 financial year, we used the Employee Commitment Index (ECI) to measure the degree to which employees identified with the company.

• Engagement of employees.The PEI expresses how engaged employees are in their work at EnBW and was measured and reported as a key perfor-mance indicator for the first time in 2020. It is compiled at all companies with more than 100 employees (except for the Independent Transmission Operators [ITOs]) as part of an employee survey carried out by an exter-nal, independent service provider. It is determined based on the first question of the standardized list of questions “How happy are you working for the EnBW Group and the compa-nies in the Group?” It is a question that uses a rating scale from 1 (I do not agree at all) to 5 (I agree completely). The value determined is then converted to a scale of 0 to 100.
• Occupational safety. The LTIF indicates how many accidents at work led to at least one day of absence, based on one million hours worked. The calculation of the LTIF overall generally includes all companies with more than 100 employees. For the calculation of the LTIF for companies controlled by the Group, those companies engaged in the area of waste management are excluded because the number of accidents deviates significantly from that in the core business in the energy industry. External agency workers and contractors are not taken into account in either performance indicator. The number of accidents at work and the resulting days of absence should remain stable or fall.