Financial and non-financial key performance indicators and targets
We monitor the implementation of our strategy by means of a holistic goal and performance Management system. This system strengthens integrated thinking in our company. At the same time, it underpins our comprehensive and transparent focus on performance and stakeholders. Our goal system comprises the five dimensions of finance, strategy, customers and society, environment and employees. A number of specific targets have been defined in each goal dimension and their achievement is continuously measured using key performance indicators. Linked with this goal system and the centerpiece of our corporate management is the performance management system (PMS). Quantitative target values are currently set for the key performance indicators for the 2025 strategy horizon and now for the first time also the 2030 strategy horizon.
Goal dimension finance
- Securing our profitability. The adjusted EBITDA is the earnings before the investment and financial results, income taxes, depreciation and amortization and adjusted for non-operating effects. Adjusted EBITDA is a key performance indicator for the finance goal dimension, while the key performance indicators for the strategy goal dimension, which describe the shares of adjusted EBITDA accounted for by the segments are derived from it.
- Managing the financial profile. The key performance indicator debt repayment potential describes the retained cash flow in relation to net debt. The debt repayment potential measures the ability of EnBW to repay its debts from its current earnings potential. This performance indicator should enable us to achieve a controlled growth in earnings within the scope of our financial targets, while maintaining a solid investment-grade rating at the same time. It will guarantee that the financial profile of EnBW complies with the quantitative requirements stipulated by the rating agencies.
- Increasing the value of the company. The value spread measures the surplus return over the minimum return on capital employed before taxes in a reporting period. It is calculated by deducting the minimum return on capital employed before tax, defined by the weighted average cost of capital (WACC), from the return on capital employed before taxes that was actually achieved. Value spread will no longer be classified as a key performance indicator relevant to the control of the company from the 2024 financial year onwards and will be replaced by the new key performance indicators share of adjusted EBITDA accounted for by low-risk earnings and proportion of taxonomy-aligned expanded capex.
- Robustness of the earnings potential. The share of adjusted EBITDA accounted for by low-risk earnings is the sum of the adjusted EBITDA for the System Critical Infrastructure segment and the adjusted EBITDA for the Renewable Energies area in relation to the adjusted EBITDA for the EnBW Group. The external financing of our necessary investment is an important part of the EnBW strategy. In contrast to some of its competitors, EnBW operates along the entire value added chain. Against this background, it is especially important for EnBW to determine the share of low-risk activities for the rating agencies.
- Focus on the energy transition. External financing is an important tool for successfully implementing the EnBW strategy, while the EU taxonomy provides a central framework for the investment strategy of banks and investors who have a focus on sustainability. By reporting on sustainable investment both at our fully consolidated companies and also at entities accounted for using the equity method, we are placing great importance on the performance indicator proportion of taxonomy-aligned investment.
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Goal
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Key performance indicator
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2023
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Target for 2025
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Target for 2030
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|---|---|---|---|---|
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Goal
Securing profitability
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Key performance indicator
Adjusted EBITDA in € billion
|
2023
€6.4 billion
|
Target for 2025
€3.2 billion
|
Target for 2030
€5.5 – €6.3 billion
|
|
Goal
Managing the financial profile
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Key performance indicator
Debt repayment potential
|
2023
41.3%
|
Target for 2025
≥ 15%
|
Target for 2030
≥ 15%
|
|
Goal
Increasing Group value
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Key performance indicator
Value Spread
|
2023
10.2%
|
Target for 2025
-
|
Target for 2030
-
|
|
Goal
Robustness of the earnings potential
|
Key performance indicator
Share of adjusted EBITDA accounted for by
low-risk earnings |
2023
-
|
Target for 2025
≥ 70%
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Target for 2030
≥ 70%
|
|
Goal
Focus on the energy transition
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Key performance indicator
Proportion of taxonomy-aligned
expanded capex |
2023
-
|
Target for 2025
≥ 85%
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Target for 2030
≥ 85%
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Goal dimension strategy
Our EnBW 2025 strategy increasingly places the company’s focus onto the infrastructure aspects of existing energy-related business fields and other activities that are aligned with our core expertise. We have updated the 2025 strategy with an outlook to the period up to 2030.
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Goal
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Key performance indicator
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2023
|
Target for 2025
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Target for 2030
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|---|---|---|---|---|
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Goal
Share of result accounted for by “Smart Infrastructure for Customers”
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Key performance indicator
Share of overall adjusted EBITDA
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2023
€0.2 billion/3.8%
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Target for 2025
€0.6 billion/20.0%
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Target for 2030
€0.7 – €1.0 billion
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Goal
Share of result accounted for by “System Critical Infrastructure”
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Key performance indicator
Share of overall adjusted EBITDA
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2023
€1.8 billion/27.8%
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Target for 2025
€1.3 billion/40.0%
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Target for 2030
€2.3 – €2.6 billion
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Goal
Share of result accounted for by “Sustainable Generation Infrastructure"
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Key performance indicator
Share of overall adjusted EBITDA
|
2023
€4.6 billion/73.0%
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Target for 2025
€1.3 billion/40.0%
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Target for 2030
€2.7 – €3.0 billion
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Goal dimension customers and society
- 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. The key performance indicator Customer Satisfaction Index assesses the average satisfaction of private end customers for electricity 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.
- 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.
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Goal
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Key performance indicator
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2023
|
Target for 2025
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Target for 2030
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|---|---|---|---|---|
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Goal
Reputation
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Key performance indicator
Reputation Index
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2023
55
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Target for 2025
55 – 59
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Target for 2030
56 – 60
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Goal
Customer proximity
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Key performance indicator
Customer Satisfaction Index EnBW
Customer Satisfaction Index Yello |
2023
130
161 |
Target for 2025
125 – 136
148 – 159 |
Target for 2030
148 – 157
155 – 175 |
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Goal
Supply reliability
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Key performance indicator
SAIDI (electricity) in min/year
|
2023
19.3
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Target for 2025
< 20
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Target for 2030
< 20
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Goal dimension environment
- Expand renewable energies (RE). The installed output of renewable energies (RE) and the share of the generation capacity accounted for by RE are measures of the expansion of renewable energies and refer to the installed output of the power plants and not to their weather-dependent contribution to electricity generation.
- Climate protection. The emissions of CO₂ from own generation of electricity for the Group, as well as the volume of electricity generated by the Group without the contribution made by the nuclear power plants, form the basis for the calculation of the key performance indicator CO₂ intensity. This performance indicator is calculated as the ratio between the emissions and the generated volume of electricity and thus specifically describes the amount of CO₂ released per kilowatt hour. By discounting the electricity generated by nuclear power plants, the performance indicator will not be influenced by the phasing out of nuclear energy.
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Goal
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Key performance indicator
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2023
|
Target for 2025
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Target for 2030
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|---|---|---|---|---|
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Goal
Expand Renewable Energies (RE)
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Key performance indicator
Installed output of RE in GW and the share of the generation capacity accounted for by RE
|
2023
5.7 GW
46.9% |
Target for 2025
6.5 to 7.5 GW
> 50% |
Target for 2030
10.0 to 11.5 GW
75 – 80% |
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Goal
Climate protection
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Key performance indicator
CO₂ intensity
|
2023
347 g/kWh
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Target for 2025
380 – 440
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Target for 2030
90 – 110
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Goal dimension employees
- Engagement of employees. The PEI expresses how engaged employees are in their work at EnBW. 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 external, 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 companies 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 According to the current definition, the calculation of the LTIF overall 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. In future, the existing LTIF performance indicators will be replaced by LTIF energy (excluding waste management) and LTIF overall, which includes waste management. According to the new definition, both performance indicators cover the entire group of consolidated companies for the financial reports, including companies with less than 100 employees.
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Goal
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Key performance indicator
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2023
|
Target for 2025
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Target for 2030
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|---|---|---|---|---|
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Goal
Engagement of employees
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Key performance indicator
People Engagement Index (PEI)
|
2023
82
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Target for 2025
77-83
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Target for 2030
77-83
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|
Goal
Occupational safety
|
Key performance indicator
LTIF for companies controlled by the Group
LTIF overall LTIF energy LTIF overall |
2023
2.4
3.7 – – |
Target for 2025
2.1
3.5 – – |
Target for 2030
–
– ≤ 2 ≤ 3.3 |