Financial and non-financial key performance indicators and targets
We safeguard the implementation of our strategy by means of a holistic goal and performance management system. Our goal system comprises the five dimensions of finance, strategy, customers and society, employees and environment. The key performance indicators enable us to measure the degree to which goals are achieved and to manage our company.
The key performance indicators for the 2020 financial year were unchanged in comparison with the previous year with one exception: The People Engagement Index (PEI) has replaced the Employee Commitment Index (ECI).
We have achieved or exceeded the financial and non-financial targets defined in the EnBW 2020 strategy almost in full and in many cases ahead of plan. We view this as an outstanding success because the majority of the strategy targets were already defined in 2013 – eight years ago – and we have worked to achieve them in a resolute and disciplined manner, with huge commitment from all involved.
Key performance indicators
The adjusted EBITDA
The adjusted EBITDA for the 2020 financial year stood at €2.8 billion and thus exceeded the target value of between €2.3 billion and €2.5 billion. The Grids and Renewable Energies segments were important earnings generators in the strategy period.
Internal financing capability
The adjusted retained cash flow reached the forecasted range of €1.9 billion to €2.0 billion in 2020 so that the target value for internal financing capability of ≥100% was slightly exceeded. We were also able to achieve our target of an internal financing capability of around 100% for the period 2017 to 2020 with 99.2%.
ROCE (return on capital employed)
ROCE reached 6.3% in 2020 and did not reach the target range of 8.5% to 11%. The main reason for this was the fall in capital market returns as a result of the low-interest phase.
Share of the adjusted EBITDA accounted for by the segments
The regulated grid business and renewable energies accounted together for 78% of the operating earnings in 2020. The target here was at least 70%. We have realized the planned transformation of the business portfolio and thus significantly improved the risk-return profile of EnBW.
Non-financial key performance indicators
We slightly exceeded our target with a value of 56 index points, which was mainly due to the fact that our stakeholders appreciate our reliable business performance and our commitment to sustainability and climate protection.
Customer Satisfaction Index
The Customer Satisfaction Index for the EnBW brand stood at 132 points in 2020 and thus narrowly missed the strategic target defined in 2013 of >136. The Customer Satisfaction Index for the Yello brand of 159 points in 2020 virtually achieved the target value of >159. While customer satisfaction with the Yello brand is significantly influenced by brand image, price and service quality, the Customer Satisfaction Index for the EnBW brand is also impacted by social aspects. This is because it is a Group brand that has its own electricity generation capacities, which makes it more strongly recognizable to the public. This includes, for example, how the energy-industry activities of EnBW are perceived and the position it takes on current energy policy issues, the effects of which are difficult to predict in the long term.
Due to our ongoing investment and maintenance programs, SAIDI remained at a good, stable level of 15 min./year. We were thus able to achieve our target value of <25 min./year.
Installed output of renewable energies (RE) and the share of the generation capacity accounted for by RE
The installed output of RE reached 4.9 GW in 2020 and we thus almost achieved our target of 5.0 GW. The share of the generation capacity accounted for by RE stood at 39%, which was only slightly below the target value of >40%. That means we have largely realized our strategic plans for the expansion of electricity generation from renewable energies.
The CO₂ intensity of own generation of electricity in 2020 was 372 g/kWh. The target was to reduce the value from 2015 of 606 g/kWh by between 15% and 20%. We were able to clearly exceed this target with a reduction of 39%. The reasons for the over-attainment of this target were – despite the increased utilization of our power plants for redispatch by the transmission system operators in 2020 – the decommissioning of fossil fuel power plant capacities, which were mainly transferred to the grid reserve due to their system relevance, market-driven developments and the effect of the coronavirus pandemic.
The key performance indicator People Engagement Index (PEI) was only introduced in 2020 and there was thus no strategic target value defined for 2020. The Employee Commitment Index (ECI) was not compiled in 2020 but we had already exceeded the 2020 target value for this indicator in 2019.
In comparison to the previous year, the LTIF for companies controlled by the Group remained at a good, stable level and we were thus able to achieve our target. There was no target value defined for LTIF overall for the 2020 financial year as we only reported on this performance indicator for the first time in 2019.