Quarterly Report • Nov 13, 2009
Quarterly Report
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Q1–Q3
EnBW Energie Baden-Württemberg AG
| EnBW group | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
Variance % |
1/1– 31/12/2008 |
|
|---|---|---|---|---|---|
| Revenue | |||||
| Electricity upstream | € millions | 1,847.9 | 1,796.2 | 2.9 | 2,541.7 |
| Electricity downstream | € millions | 7,468.8 | 7,617.2 | -1.9 | 10,194.7 |
| Gas | € millions | 1,852.4 | 1,740.9 | 6.4 | 2,881.2 |
| Energy and environmental services |
€ millions | 534.0 | 506.3 | 5.5 | 687.8 |
| External revenue, total | € millions | 11,703.1 | 11,660.6 | 0.4 | 16,305.4 |
| Adjusted EBITDA | € millions | 2,004.0 | 1,949.8 | 2.8 | 2,595.6 |
| EBITDA | € millions | 2,031.2 | 1,965.6 | 3.3 | 2,540.1 |
| Adjusted EBIT | € millions | 1,402.6 | 1,367.4 | 2.6 | 1,793.9 |
| EBIT | € millions | 1,419.3 | 1,321.4 | 7.4 | 1,468.2 |
| Adjusted group net profit1, 2 | € millions | 717.1 | 821.9 | -12.8 | 1,098.8 |
| Group net profit1, 2 | € millions | 712.8 | 782.1 | -8.9 | 879.3 |
| Earnings per share from group net profit1, 2 |
€ | 2.92 | 3.20 | -8.8 | 3.60 |
| Cash flow from operating activities |
€ millions | 1,550.2 | 1,483.5 | 4.5 | 1,523.9 |
| Free cash flow1 | € millions | 853.9 | 769.4 | 11.0 | 404.5 |
| Capital expenditure1 | € millions | 3,823.0 | 856.9 | - | 1,404.2 |
| Energy sales of the EnBW group |
1/1– 30/9/2009 |
1/1– 30/9/2008 |
Variance % |
1/1– 31/12/2008 |
|
|---|---|---|---|---|---|
| Electricity | billions of kWh |
89.3 | 95.6 | -6.6 | 130.5 |
| Gas | billions of kWh |
45.7 | 46.6 | -1.9 | 69.8 |
| Employees of the EnBW group3 |
30/9/2009 | 30/9/2008 | Variance % |
31/12/2008 | |
| Employees | Number | 20,997 | 20,363 | 3.1 | 20,501 |
1 The figures of the comparative period have been restated.
2 In relation to the profit shares attributable to the equity holders of EnBW AG.
3 Number of employees without apprentices/trainees and without inactive employees.
This report has been prepared for information purposes only. It does not constitute an offer, an invitation or a recommendation to purchase or sell securities issued by EnBW Energie Baden-Württemberg AG (EnBW), a company of the EnBW group or any other company. This report does not constitute a request, instruction or recommendation to vote or give consent. All descriptions, examples and calculations are included in this report for illustration purposes only.
This report contains future-oriented statements that are based on current assumptions, plans, estimates and forecasts of the management of EnBW. Such future-oriented statements are therefore only valid at the time at which they are published for the first time. Future-oriented statements are indicated by the context, but may also be identified by the use of the words "may", "will", "should", "plans", "intends", "expects", "believes", "assumes", "forecasts", "potentially" or "continued" and similar expressions.
By nature, future-oriented statements are subject to risks and uncertainties that cannot be controlled or accurately predicted by EnBW. Actual events, future results, the financial position, development or performance of EnBW and the companies of the EnBW group may therefore diverge considerably from the future-oriented statements made in this report. Therefore it cannot be guaranteed nor can any liability be assumed otherwise that these futureoriented statements will prove complete, correct or precise or that expected and forecast results will actually occur in the future.
EnBW assumes no obligation of any kind to update the information contained in this report or to adjust or update future-oriented statements to future events or developments. This quarterly financial report can also be downloaded from the internet in German or English. In case of doubt, the German version shall prevail.
With some six million customers and more than 20,000 employees, EnBW Energie Baden-Württemberg AG generated annual revenue in excess of € 16 billion in 2008. As the third-largest energy company in Germany, we focus on the segments of electricity upstream, electricity downstream and gas as well as energy and environmental services.
We are committed to Baden-Württemberg and Germany as locations and these are the focal points of our activities. We also operate in other European markets.
Adjusted EBIT rose slightly from € 1,367.4 million to € 1,402.6 million despite the general economic slump.
In contrast, adjusted group net profit fell due to the drop in the financial result, reaching € 717.1 million in comparison to the € 821.9 million seen in the prior-year period.
Over the period from January to September 2009, total investment increased by € 2,966.1 million to € 3,823.0 million.
Net debt increased by € 2,673.7 million as a result of the growth in capital expenditure and came to € 9,507.2 million as of the end of the third quarter.
The Federal Anti-Trust Office approves EnBW's takeover of a 26% shareholding in the Oldenburg-based energy group. The acquisition takes the form of a share purchase and a capital increase. The two companies plan to cooperate as strategic partners to further develop core fields of business.
Together with Prime Minister Oettinger and EDF's management board member Gadonneix, EnBW lays the foundation stone for the extension of the Rhine power station, one of the largest run-of-the-river power stations in Europe. An additional 122 million kWh of electricity will be generated each year from 2012. More than 540,000 people will then be supplied with CO2-free electricity from Iffezheim.
The existing turbines at both Stuttgart-Münster and Stuttgart-Gaisburg combined heat and power plants are supplemented with a back pressure turbine. This makes it possible to increase the portion of district heating generated in Stuttgart by combined heat and power units from around 80% to more than 90%.
EnBW Transportnetze AG and the University of Hohenheim launch a joint three-year research project with the aim of developing new mathematical models to reliably predict electricity production from renewable energy sources despite weatherrelated fluctuations.
After the multi-step assessment by the International Atomic Energy Agency (IAEA), the independent experts conclude that Neckarwestheim is a very good nuclear power plant according to international standards, demonstrating many elements of a strong safety culture.
Only a few days before EnBW's representative office is opened in Ankara, the alliance between the Turkish Borusan Holding and EnBW becomes visible as the first joint wind turbines are put into operation in western Turkey.
EnBW Erneuerbare Energien GmbH begins construction of its first major solar farm at Leibertingen (Sigmaringen district). Around 2.1 million kW of electricity will be generated each year on a site covering 7 hectares. This is sufficient to supply some 600 households and save 1,240 t of CO2. Commissioning is scheduled for December 2009.
Consumers are increasingly focusing on how to achieve the optimum use of energy. EnBW launches a wide public campaign to reduce energy consumption. The company's customers become ambassadors, reporting on how they use energy efficiently and what EnBW does to support them.
Hans-Peter Villis, Chief Executive Officer
Dear shareholders, investors and friends of EnBW,
In the first nine months of 2009, the EnBW group generated adjusted EBIT (result of operations before income taxes, financial result and investment result) of € 1,402.6 million. Adjusted EBIT for the comparative period of the prior year amounted to € 1,367.4 million.
Due to the much lower overall economic output this year and the associated drop in demand for energy, the unit sales of electricity in the EnBW group fell by 6.6 per cent to 89.3 billion kilowatt-hours. The marked decrease seen in the first two quarters became much less pronounced in the third quarter. We are therefore cautiously optimistic that the demand for energy will recover again as the economy picks up.
The decline in demand for energy was primarily attributable to a drop of roughly 20 per cent in unit sales to B2B customers, while unit sales of electricity to retail customers were largely unaffected by the economic development and remained at prior-year level. Gas sales amounted to a total of 45.7 billion kilowatt-hours. This is a slight decrease of 1.9 per cent. The increase in unit sales in the first quarter of 2009, which was attributable to a cold winter, was eliminated due to higher temperatures and the effects of the economic development in the second and third quarters.
EnBW's revenue for the period from January to September 2009 remained largely unchanged compared to the prior-year level. It climbed by 0.4 per cent to € 11,703.1 million. Group net profit in terms of the profit shares attributable to the equity holders of EnBW AG dropped by € 69.3 million to € 712.8 million in a year-on-year comparison. This was due
first and foremost to higher borrowing costs in conjunction with our growth-oriented investment programme. By the end of September 2009 EnBW's capital expenditures reached a total of € 3,823.0 million. This is € 2,966.1 million more than in the prior year. Material items included the acquisition of shares in EWE and Lippendorf Unit S and Bexbach power stations, the joint venture with Borusan Holding in Turkey and the purchase of onshore wind farms in Lower Saxony and Brandenburg. Together with the additional purchase of shares in the Rostock and Bexbach power stations as communicated in October and the electricity procurement rights from the Buschhaus power station in Germany, we have thus increased our nationwide generation capacities by some 1,100 megawatts within just a few months. These measures demonstrate how EnBW is pursuing its future-oriented investment and growth programme in a targeted manner. Another example in this context are the first wind turbines, operated jointly by us and our partner Borusan Holding, that went online in Turkey towards the end of September.
After the Federal Anti-Trust Office had given its approval, subject to certain conditions, in July to the acquisition of a 26 per cent shareholding in EWE AG, it also came to a positive decision, subject to the same conditions, regarding the acquisition of a shareholding of 48 per cent in VNG – Verbundnetz Gas AG. This option now makes it possible for EnBW to expand its activities in the gas segment. Together with the shareholders of VNG, EnBW will therefore seek to explore the possibilities of entrepreneurial partnership and consider the option of investing in VNG over the next few months.
With a cash flow from operating activities of € 1,550 million in the first three quarters of the fiscal year, EnBW's sound internal financing power and good access to the capital market are unchanged. In this context, EnBW successfully placed two bonds with a total volume of € 1,350 million on the market this July in view of its investment programme. Both bonds were clearly oversubscribed, demonstrating the huge interest on the part of investors. We do not expect to need any further financing for 2009 following this successful bond placement.
EnBW has made significant investments in the sustainability of the company in 2009. Our guiding principle is to employ our capital efficiently. For energy, too, it is important to us that it is used efficiently. For the consumers, whether households, municipalities or large companies, making the best use of energy has become a key topic. We believe that energy companies have to adapt and assume the role of energy consultants and service providers if they want to satisfy their customers and achieve customer loyalty in the long term. Where offers regarding the efficient use of energy and related products are concerned, EnBW is a leading provider in Germany. The wide public campaign that was launched recently to reduce energy consumption underlines this claim as well as our objective of supporting our customers with intelligent solutions to achieve energy efficiency.
Yours sincerely,
Hans-Peter Villis Chief Executive Officer
Karlsruhe, November 2009
In addition to its sound internal financing power, EnBW has adequate headroom with regard to external financing. The bonds issued in July met with great investor interest and provide evidence of the confidence placed in EnBW as capital market issuer. A further rating agency, Fitch, began rating the company on an ongoing basis in May 2009. Fitch's rating is A, with a stable outlook. With Société Générale, another major bank has assumed coverage of the EnBW share.
At the beginning of 2009, the price of the EnBW share was just under € 38. It reached its lowest level of € 34 in March; at € 40.40 it was on the rise again by the end of September. The DAX, the German leading share index, saw much greater fluctuations. By March it had fallen by 23% in comparison to the levels seen at the beginning of the year. A level of just under 5,700 points at the end of September is equivalent to growth of 18% over the first nine months of 2009. The DJ EURO STOXX UTILITY index, which reflects European utilities, was down on the beginning of the year for almost all of the reporting period and had recovered to just under its January level as of the cut-off date.
1 Performance of DAX and DJ EURO STOXX UTILITY indexed to the EnBW share.
As of 30 September 2009, there were no changes to the shareholder composition, which breaks down as follows:
| EDF International SA (EDFI) | 45.01% |
|---|---|
| Zweckverband Oberschwäbische Elektrizitätswerke (OEW) | 45.01% |
| Badische Energieaktionärs-Vereinigung | 2.55% |
| EnBW Energie Baden-Württemberg AG | 2.30% |
| Gemeindeelektrizitätsverband Schwarzwald-Donau | 1.28% |
| Neckarelektrizitäts-Verband | 0.69% |
| Landeselektrizitätsverband Württemberg | 0.54% |
| Other municipal shareholders | 0.78% |
| Free float | 1.84% |
› EnBW on the capital market
In addition to a high volume of new government bond issues, companies have taken out new record levels of refinancing on the bond market over the first nine months of 2009. The previous record for new investment grade corporate bond issues of € 200 billion, set in 2001, was broken even before the year was out. The favourable conditions for issuers that continued to improve in the course of the year presumably also made a contribution. Investors are once again snapping up emerging market bonds and junk-rated corporate bonds after this market had come to a standstill in the course of the financial crisis. The performance of iBoxx € Eurozone, which reflects the return on the government bonds of various European countries, reveals that the level of return has fallen over the year. With regard to the performance of the iBoxx € Utilities index, which covers the bonds issued by European utility companies, a drop in returns can be seen in the third quarter in particular. The prices of EnBW's bonds increased significantly over the first nine months of 2009. In particular, the prices of medium-term bonds with high coupons were clearly over parity as of 30 September 2009.
Yield on the bond market from January to September 2009 in %
Alongside the sound internal financing power from its operating cash flow, EnBW has a number of shortto medium-term debt instruments. In view of its investment programme, EnBW has borrowed funds of € 1.85 billion in fiscal 2009, for example, in the form of a long-term bilateral credit line of € 0.5 billion and in the form of two bonds successfully placed at the beginning of July with a total volume of € 1.35 billion with maturities of 6 years (€ 750 million) and 30 years (€ 600 million). The bonds were clearly oversubscribed – a sign of great interest on the part of investors.
A further rating agency, Fitch, began rating the company on an ongoing basis in May 2009. Fitch's rating matches that of Moody's (A2) and is one category above the rating issued by Standard & Poor's (A-). Following the announcement of the planned acquisition of just under 48% of the shares in Verbundnetz Gas AG, Standard & Poor's and Moody's put the outlook for their rating under observation for a potential downgrade. One of the reasons quoted by the agencies as justification was a potential deterioration in EnBW's financial profile. Nevertheless, both rating agencies emphasise the positive effects of the potential acquisition on the gas segment. Fitch, on the other hand, maintained a "stable" outlook for EnBW's rating. EnBW is making every effort in pursuit of its goal of maintaining an A rating in the medium term. In this context, one of the corporate management goals is to keep debt to a reasonable level. For this purpose, the company uses the dynamic leverage ratio, calculated from the ratio of net liabilities to EBITDA. Within the strategic further development of its core activities, EnBW manages its investment programme, which is budgeted to come to € 7.7 billion over the period from 2009 to 2011, and will accordingly make any divestitures necessary.
One of the main objectives of the financial communication by EnBW's Board of Management and Investor Relations is safeguarding the trust of investors, analysts and rating agencies in EnBW at all times and irrespective of the situation on the capital market and the company's current financing needs. EnBW presented itself to a wide audience of investors at an investor conference held in New York in January. In March, EnBW staged a road show throughout Europe. As of the second and third quarters, we primarily sought close personal dialogue to market players. Numerous talks on corporate development focused on the expansion of generation capacities through the purchase of power station capacities, the acquisition of shares in EWE AG and the related conditions imposed, the exchange of electricity procurement rights with E.ON and energy policy issues. With Société Générale, another major bank was won to assume coverage of the EnBW share. The assessment began with a price target of € 38 and a rating of "hold". The price at that time was slightly in excess of the current market price of € 36. The range of share price forecasts comes to a total of as much as € 55 per share.
In the reporting period, the price level of electricity, primary energy sources and CO2 allowances is clearly below that seen in the prior year, primarily due to the economic crisis. The Federal Network Agency has increased the revenue caps as part of the regulation of network user charges. The new political constellation following the 2009 elections to the German parliament may bring about significant changes to the energy industry.
The state of the economy as a whole in 2009 was to a large extent characterised by the global economic crisis. Initially, the positive signs currently being seen may well constitute no more than the end of the contraction process. Experts from various institutes deem it too early to start talking of the beginning of recovery.
According to Eurostat estimates in October this year, economic output in the euro area, measured in terms of gross domestic product (GDP), fell by 4.8% in the second quarter of 2009 in comparison to the prior-year period. The first quarter of 2009 saw a decline of 4.9%. For Germany, the German Institute for Economic Research (DIW) anticipates a 5.0% decline in GDP in the third quarter in comparison to the respective prior-year period following a drop of 6.7% and 5.9%, respectively, in the first two quarters.
Comparison with the immediately preceding prior period indicates that the economic situation is stabilising at a low level. According to Eurostat, GDP in the euro area merely dropped by 0.2% in the second quarter of this year in comparison to the first quarter of 2009, while minor growth of 0.3% was reported in Germany over the same period. For the third quarter, the DIW anticipates growth of 0.8% on the prior quarter in Germany.
This significant decline in economic output in Germany is also reflected in the energy consumption. For the period from January to August 2009, provisional figures published by the German Energy and Water Association (BDEW) reported a reduction in total electricity consumption in Germany of 6.8% in comparison to the prior year. Gas consumption saw a decline of around 11.0% in the first half of the year. This significant decline in electricity and gas demand is primarily due to the fall in demand from industry.
Primary energy sources: The development of coal and oil prices was largely dictated by the collapse of the world economy. As a consequence of the significant fall in price in the second half of 2008, the price level for the first nine months of 2009 of both short-term deliveries and of deliveries in 2010 was below that seen in the prior-year period.
From early January to the beginning of March 2009, the import prices of hard coal for short-term deliveries and deliveries in 2010 for the ARA ports (Amsterdam, Rotterdam, Antwerp) continued their downward trend already seen in 2008, albeit in a less dramatic fashion. The prices for short-term deliveries have settled at a level between US\$ 67 and 69/t in September following a series of upward and downwards movements over the period from March to August. At the end of September, the price was clearly down (18%) on the level seen at the beginning of the year. The prices of deliveries in 2010 initially increased between March and mid-June but had fallen again by the end of September. As of 30 September 2009 the price was some 10% below the price at the beginning of the year. The main reasons for the low price level included falling demand for coal due to the negative economic development in conjunction with high stock levels in some European countries. In addition, low spot market gas prices provided for a drop in demand for coal, as gas can be used as a substitute for coal. Coal prices were boosted between February and August 2009 by higher demand in China for imported coal and rising oil prices.
Following a significant fall in the price of oil in the second half of 2008 (Brent crude oil) and a further decline in the price in the first quarter of 2009, prices for the following month (front month) and for forward delivery for 2010 (front year) climbed significantly above the level of the beginning of the year in the course of the second quarter of 2009. In the third quarter of this year, prices generally settled around this high. The average price for deliveries in the front month was around US\$ 68.87 per barrel in the third quarter of 2009, i.e. around 50% above the average price level in the first quarter of 2009. In the third quarter of 2009, the average price for deliveries in 2010 was around US\$ 74.12 per barrel, just under 28% up on the first quarter of this year. At the same time, the price was still some 39% lower than in the previous year. The price level on the oil market that gradually increased in the course of the year was closely linked to the upward movements on the global share markets. Despite the collapse in global demand, this increase has awakened market participants' hope for an economic recovery in the near future which in turn has boosted demand for oil. In 2009, the price has furthermore been supported by cuts in OPEC's production and the decline in the value of the US dollar.
| Price development on the coal and oil markets | Average Q3 2009 |
Average Q3 2008 |
Average 2008 |
|---|---|---|---|
| Coal – weekly index for short-term delivery (API#2 in US-\$/t) |
69.00 | 191.89 | 147.74 |
| Coal – API#2 Y2010 in US-\$/t | 82.69 | 177.01 | 136.44 |
| Crude oil (Brent) front month (daily quotes in US\$/bbl) | 68.87 | 117.15 | 98.52 |
| Cruide oil (Brent) annual price 2010 (daily quotes in US\$/bbl) | 74.12 | 122.05 | 102.17 |
Wholesale electricity market: The price level on the spot market over the first nine months of 2009 was significantly below the prior-year level. The main reasons for the decline in price included the prices of primary energy sources and CO2 allowances that had fallen in the course of the economic crisis and an extreme drop in load in comparison to the prior year. After the € 47.36/MWh and € 32.38/MWh seen in the first two quarters of this year, the average spot market price (immediate delivery, base load product) stood at € 37.03/MWh in the third quarter. It was still below the price of the first quarter of 2009 and some 50% lower than in the prior-year period. The price of forward contracts for 2010 (base load product) averaged around € 49.14/MWh in the third quarter of 2009, therefore roughly at the level of the first quarter of 2009 and almost 30% down on the prior year. The price came to € 52.33/MWh in the previous quarter and € 49.17/MWh in the first quarter of 2009. Electricity prices thus generally reflect the price movements on the forward markets for fuel and CO2 allowances and market participants' expectations of modest economic development in the coming year.
Prices for retail and industrial customers: The electricity costs of a typical three-person household averaged € 63 per month in 2008. Over the period from January to September 2009, the German Federal Statistics Office established an increase in the price for private households in comparison to the prior-year period 2008. This is due, among other things, to the fact that some quantities of electricity for retail customers and commercial businesses are purchased several years in advance via the wholesale market. This mitigates the risk of price peaks but, at the same time, also means a time-lag in adjusting to a rapidly falling price level on the wholesale market. Prices for industrial customers are, as a rule, more closely linked to the current price level on the wholesale market.
Price developments: Long-term gas import contracts form the basis of gas supplies in Germany. The price of gas tracks the price of oil with a time lapse of around six months.
Due to the increase in the oil price until mid-2008, the border price index compiled by the Federal Office of Economics and Export Control (BAFA) for natural gas correspondingly peaked at the end of 2008. There followed a significant decline in prices in the first half of 2009, tracking the collapse in the price of oil in the second half of 2008. It stood at € 30.03/MWh in January and at € 17.49/MWh in July, which corresponds to a 42% drop. In comparison to the average import price seen in 2008 (€ 26.82/MWh) this constitutes a drop of around 35%.
environment
The spot prices on the Dutch wholesale market TTF were significantly lower; these prices had already fluctuated at an unusually low level for the time of year in the first quarter of 2009 and fell in the second quarter for seasonal and economic reasons. Alongside weakening demand, a stable supply situation also brought about a decline in spot prices. In the third quarter of 2009, prices stabilised at a low level, averaging € 9.24/MWh. In the first half of the year, the average had been around € 14.48/MWh.
The prices of forward contracts for 2010 remained virtually unchanged at around € 20/MWh over the first half of 2009. Negative price developments were seen in the third quarter. The average price over this period was around € 17.42/MWh. This represents a drop of more than half in a year-on-year comparison. The anticipation of demand being moderate as a result of the economic development has made itself felt also in this respect.
| Development of prices for natural gas (Dutch wholesale market) in €/MWh |
Average Q3 2009 |
Average Q3 2008 |
Average 2008 |
|---|---|---|---|
| Spot | 9.24 | 26.50 | 24.98 |
| Delivery 2010 | 17.42 | 37.20 | 30.81 |
EnBW's electricity generation portfolio includes CO2-emitting power stations. Under the European emissions trading system, the requisite number of emissions allowances have to be evidenced for these CO2 emissions.
The price of emission allowances (EU Allowances – EUA) for delivery in 2010 (EUA-10) virtually halved in the last six months of 2008 following the economic downswing. The main reasons for this development can be traced back to the emissions savings on account of the lower level of industrial production and the fuel switching costs that have similarly dropped due to fuel price development. In 2009, the prices of EUA-10 allowances continued to fall until mid-February reaching a level around € 8/t. It was not until mid-May that quotations returned to the level seen at the beginning of the year in excess of € 16/t. After a further decline to under € 14/t, the third quarter saw moderate growth until early September, but prices did not reach the previous high of the year. As of September, prices fell once again to just over € 14/t.
Allowances from projects to reduce emissions in emerging and developing countries (Certified Emission Reductions – CER) are a further means by which companies can cover at least part of their emissions. Over the first nine months of 2009, the price of CER-10 allowances generally tracked the movements of EUA-10 allowances but at a slightly lower level than the EUA price due to the higher risk involved.
| Development of prices for emission allowances/daily quotes in €/t |
Average Q3 2009 |
Average Q3 2008 |
Average 2008 |
|---|---|---|---|
| EUA-10 | 14.66 | 26.51 | 23.88 |
| CER-10 | 12.46 | 21.23 | 17.58 |
In April and June 2009, the climate package ("green package") and the third energy liberalisation package were passed at European level. The climate package contains regulations on reductions in greenhouse gas emissions, on emissions trading, renewable energies and carbon dioxide capture and storage (CCS). For example, the new emissions trading regime provides for all CO2 allowances for the energy industry to be auctioned for the third trading period from 2013. This regulation entails additional costs for energy suppliers that will depend on the share of CO2-based electricity costs. All in all, this will place a burden on the viability of fossil-fuelled generation. One of the main aspects of the energy liberalisation package is the possibility of introducing alternatives to ownership unbundling. This means that governments retain the options of creating independent system operators and independent transmission operators ("third way") when transposing the packages into national law. Accordingly, disposal of transmission grids will not be mandatory. In light of the new political constellations, it will be necessary to await which path Germany will take.
Directive on industrial emissions: A directive is being prepared at EU level with the aim of reducing the pollution to the air, water and soil from industrial plant by lowering the maximum emissions limits for these facilities. Depending on various factors, this may mean that such facilities will need retrofitting. The directive has to be passed by the European Council and the European Parliament before it is transposed into national law. The current schedule provides for a second reading in parliament in January 2010 and for the legislation to be passed in the summer of 2010.
The grand coalition was no longer able to enact the bills for the Energy Efficiency Act (EnEffG) or the Act on the Capture, Transportation and Storage of CO2 (KSpG). As both cases relate to the mandatory transposition of EU directives, the wording of the acts will now have to be revised once again. The former government coalition had failed to reach agreement on the draft carbon capture and storage (CCS) legislation due to reservation on the part of some of those German federal states that have potential sites for CO2 storage facilities. This constitutes a disadvantage first and foremost with regard to the legal certainty of CCS pilot projects and similarly with regard to the possibility of obtaining grants for CCS facilities as provided for in the EU's climate package.
The lower house of the German parliament passed an ordinance on the cost allocation mechanism under the German Renewable Energies Act (EEG) in the second quarter of 2009. This considerably reduces the effort involved in implementing the requirements of the EEG. This means that the electricity fed in under the EEG at the distribution grid operators is no longer physically distributed in equal amounts among suppliers, but is collected and sold directly on the exchange via the transmission system operators. This simplifies handling on the part of suppliers and reduces the risks inherent in their forecasts. The Water Resources Act (WHG) was also passed before the elections to the German parliament. The act did not contain the originally planned prohibition of lateral structures, meaning that it will still be permissible to build new hydro-electric power stations.
In addition, the German Act to Accelerate the Extension of Extra-High-Voltage Lines (EnLAG) was passed and came into force at the end of August 2009. Among other things, it provides for accelerated approval procedures for grid extension projects.
environment
Network user charges: As of the beginning of 2009 an individually set cap on the revenue from network user charges was imposed on all electricity and gas network operators in Germany over four and five years for gas and electricity grids, respectively. For EnBW, this will presumably give rise to a positive effect on revenue and earnings in 2009, seen as a whole, as the revenue caps set by the Federal Network Agency for the company are generally above the most recently approved network user charges (2008). Following the rulings by the Federal Court of Justice (BGH) of August 2008, the absorption of surplus revenues will not cause a burden on revenue before 2010. This relates to the surplus revenue generated by network operators over the last few years by maintaining the original charges until the network user charges were approved. The Federal Network Agency has offered the electricity grid operators a simplified method for calculating the absorption of surplus revenues, which provides for a discount of a third in relation to the surplus revenue calculated. This offer is currently being reviewed.
In autumn 2008, the Federal Network Agency decided that supra-regional long-distance gas companies shall be subject to cost reviews. Before this, the user charges were calculated using the comparable market principle. The Federal Network Agency announced at the beginning of October of this year that the network user charges for supra-regional long-distance gas grids would be reduced by an average of 25% with effect as of 1 October 2009. This affects the following ten companies: E.ON Gastransport, Dong, Eni Gas Transport, Erdgas Münster, Gasunie Deutschland, GRTgaz Deutschland, ONTRAS – VNG Gastransport, Statoil Hydro, Thyssengas and Wingas. In addition, incentive regulation will also apply to the supra-regional long-distance grids as of 1 January 2010.
Merger of gas market territories: The number of market territories was reduced from ten to six, as expected, with effect as of 1 October of this year. The merger of gas market territories simplifies grid access for gas transmission and permits more intense competition in Germany. The most recent step in the merger of market territories involved the companies of Gasunie Deutschland, ONTRAS – VNG Gastransport, Wingas Transport, Dong Energy and Statoil Hydro Deutschland joining together under the name of GASPOOL. Furthermore, the grid operators bayernets, Eni Gas Transport Deutschland, E.ON Gastransport, GRTgaz Deutschland and GVS Netz are working towards market territory cooperation within the scope of NetConnect Germany.
While the economic environment remained difficult, EnBW achieved adjusted EBIT of € 1,402.6 in the first nine months of 2009 compared to € 1,367.4 in the prior-year period. Adjusted group net profit fell significantly in comparison to the prior year. This was primarily due to the increased finance costs arising from the investment programme and lower income from securities.
International Financial Reporting Standard IFRS 8, which is effective for the first time in fiscal 2009, leads to a change in the segment reporting of the EnBW group. What was previously the electricity segment has now been subdivided into electricity upstream and electricity downstream. The electricity upstream segment comprises the areas of generation and trading. Sales activities, distribution and transmission have been bundled in the electricity downstream segment.
| Electricity sales of the EnBW group in billions of kWh |
Upstream Downstream |
Total | ||||
|---|---|---|---|---|---|---|
| 1/1– 30/9/2009 |
1/1– 30/9/2008 |
1/1– 30/9/2009 |
1/1– 30/9/2008 |
1/1– 30/9/2009 |
1/1– 30/9/2008 |
|
| Retail customers (B2C) |
0.0 | 0.0 | 16.3 | 16.4 | 16.3 | 16.4 |
| Industry and redistributors (B2B) |
1.9 | 1.3 | 36.1 | 45.6 | 38.0 | 46.9 |
| Trade | 26.9 | 24.6 | 8.1 | 7.7 | 35.0 | 32.3 |
| Total | 28.8 | 25.9 | 60.5 | 69.7 | 89.3 | 95.6 |
Over the first nine months of fiscal 2009, the EnBW group's unit sales of electricity totalled 89.3 billion kWh, i.e. 6.6% below the level of the prior-year period. This is attributable to a 20.8% fall in unit sales to B2B customers in the electricity downstream segment. This is particularly due to greatly decreased demand as a result of the significant decline in economic output in the course of the economic crisis. Unit sales of electricity to retail customers are virtually unaffected by the economic cycle and consequently remained at the prior-year level. In the trading division, unit sales increased by a total of 8.4%, which partially offset the drop in unit sales of electricity at group level.
| Gas sales of the EnBW group in billions of kWh |
1/1– 30/9/2009 |
1/1– 30/9/2008 |
Variance % |
1/1– 31/12/2008 |
|---|---|---|---|---|
| Retail customers (B2C) | 8.2 | 8.2 | 0.0 | 12.5 |
| Industry and redistributors (B2B) | 37.5 | 38.4 | -2.3 | 57.3 |
| Total | 45.7 | 46.6 | -1.9 | 69.8 |
The EnBW group's unit sales of gas totalled 45.7 billion kWh in the reporting period; this is equivalent to a minor drop of 1.9% on the prior year. An increase in unit sales in the first quarter of 2009, which was attributable to a cold winter, was eliminated due to higher temperatures and the effects of the economic slump in the second and third quarters. From a nine-month perspective, unit sales to retail customers remained unchanged in comparison to the prior year at 8.2 billion kWh. In the B2B segment, unit sales fell by 0.9 billion kWh to 37.5 billion kWh. Diversification of gas procurement on the part of major customers has also made itself felt in this context.
| External revenue of the EnBW group by business segment in € millions1 |
1/1– 30/9/2009 |
1/1– 30/9/2008 |
Variance % |
1/1– 31/12/2008 |
|---|---|---|---|---|
| Electricity upstream | 1,847.9 | 1,796.2 | 2.9 | 2,541.7 |
| Electricity downstream | 7,468.8 | 7,617.2 | -1.9 | 10,194.7 |
| Gas | 1,852.4 | 1,740.9 | 6.4 | 2,881.2 |
| Energy and environmental services | 534.0 | 506.3 | 5.5 | 687.8 |
| Total | 11,703.1 | 11,660.6 | 0.4 | 16,305.4 |
1 After deducting electricity and natural gas tax.
In the first nine months of 2009, the EnBW group generated external revenue before deducting electricity and natural gas tax of € 12,435.7 million. After deduction of electricity and natural gas tax, external revenue came to € 11,703.1 million, slightly above the prior-year level. The decline in unit sales to B2B customers in the electricity downstream and gas segments was offset by price developments.
Electricity upstream: The 2.9% increase in revenue to € 1,847.9 million in the electricity upstream segment is mainly the result of increased unit sales in comparison to the prior year. This segment's share of total group revenue increased by 0.4 percentage points in comparison to the prior year to 15.8%.
Electricity downstream: In the electricity downstream segment, revenue fell slightly by 1.9% to € 7,468.8 million in the first nine months of 2009. The decline in unit sales due to general economic developments in the reporting period more than compensated for any effects arising from the development of prices. The share of revenue of this segment in total revenue fell to 63.8% (prior year: 65.3%).
Gas: The revenue of the gas segment increased over the reporting period to € 1,852.4 million, despite a 6.4% drop in unit sales. This is the result of how gas procurement prices developed and how they were passed on to customers, especially in the first half of 2009. The revenue generated in this segment is equivalent to a 15.8% share in the group's total revenue, following the 14.9% seen in the prior year.
Energy and environmental services: The energy and environmental services segment increased its revenue by 5.5% in comparison to the prior year to € 534.0 million. This increase is mainly attributable to other services. In relation to total group revenue, the share of revenue from this segment remains virtually unchanged at 4.6%.
Income and expenses relating to derivatives have both decreased in comparison to the prior year. Other operating income consequently decreased by € 54.1 million to € 452.5 million. Other operating expenses declined to a similar extent to income, i.e. by € 54.6 million to € 673.7 million. An increase in headcount and a collective wage increase effective as of this April caused an increase in personnel expenses. Personnel expenses rose in the first nine months of 2009 to € 1,159.4 million, after € 1,095.2 million in the prior year. In the reporting period January to September 2009, the group's amortisation, depreciation and write-downs totalled € 611.9 million, i.e. € 32.3 million less than in the prior year when an impairment loss was recognised on the gas grid. At € -530.7 million, the financial result was much lower than in the prior year. This was primarily the result of impairment losses that had to be recognised on our investments in the first quarter of the current fiscal year following the fall in prices on the capital markets. In addition, higher interest expenses arose from the bonds issued at the end of 2008 and in the course of 2009 to finance our acquisition projects and lower income was generated from securities. At € 348.1 million, income taxes were similarly € 40.9 million above the prior-year figure.
Group net profit in terms of the profit shares attributable to the equity holders of EnBW AG of € 712.8 million was € 69.3 million below the prior-year figure in the first nine months of 2009. The development of adjusted group net profit in particular was clearly negative, coming to € 717.1 million after € 821.9 million in the prior-year period. In contrast, non-operating group net profit improved to € -4.3 million in comparison to € -39.8 million in the prior year.
One key performance indicator within the EnBW group is adjusted EBIT. Adjusted EBIT is an earnings ratio adjusted for non-operating effects to accurately reflect the development of results of operations. Nonoperating results include extraordinary effects such as gains or losses on the disposal of non-current assets, extraordinary effects relating to the nuclear power provisions, income from the reversal of other provisions, expenses relating to restructuring, material effects on earnings resulting from changes in the law as well as impairment losses.
| Adjusted EBIT of the EnBW group by business segment in € millions1 |
1/1– 30/9/2009 |
1/1– 30/9/2008 |
Variance % |
1/1– 31/12/2008 |
|---|---|---|---|---|
| Electricity upstream | 1,203.6 | 1,122.8 | 7.2 | 1,461.2 |
| Electricity downstream | 132.0 | 161.5 | -18.3 | 177.8 |
| Gas | 107.7 | 110.7 | -2.7 | 192.7 |
| Energy and environmental services | 78.9 | 64.1 | 23.1 | 100.1 |
| Holding/consolidation | -119.6 | -91.7 | -30.4 | -137.9 |
| Total | 1,402.6 | 1,367.4 | 2.6 | 1,793.9 |
1 The figures of the comparative period have been restated.
In the first nine months of the current fiscal year, the EnBW group achieved adjusted EBIT of € 1,402.6 million, an increase of 2.6% in comparison to the prior-year figure. The economic crisis had a negative impact on the development of earnings. If the consolidation effects incurred in the first nine months of 2009, mainly in connection with share purchases, are also taken into account in the corresponding prior-year period, adjusted EBIT would have increased by 2.4% or € 33.2 million in the first nine months of 2009.
The electricity upstream segment boosted adjusted EBIT by 7.2% on the prior year. The main reason for this increase is a widening of the generation margin. This is the result of increased gains from marking derivatives to market and from improved terms for the forward agreements on electricity generation concluded for fiscal 2009. Higher costs for the procurement of electricity had the opposite effect, but the positive effect was clearly stronger. Further burdens on earnings stemmed from the resale of quantities not purchased by B2B customers. This was one of the consequences of the decline in demand for electricity due to the strong drop in overall economic output.
The electricity downstream segment's adjusted EBIT was down 18.3% on the prior-year level. The feed-in of wind energy and higher costs for energy for the compensation of losses had a negative impact for the regulatory area. The increase in network user charges that came into effect as of April this year had a positive effect although the contribution was smaller than anticipated due to smaller quantities of electricity being transmitted. Further relief came from the area of balancing energy. The economic crisis put pressure on earnings in the sales division.
Due to lower income relating to other periods, the gas segment failed to achieve the prior-year level of adjusted EBIT. The adjusted EBIT generated of € 107.7 million is equivalent to a drop of 2.7%.
The energy and environmental services segment generated growth in adjusted EBIT of 23.1%, bringing this figure to € 78.9 million. The disposal and other services divisions made a special contribution to this very positive development.
The holding/consolidation division reported earnings of € -119.6 million in the reporting period, in comparison to € -91.7 million in the first nine months of 2008. The deterioration of adjusted EBIT is attributable to the increase in the cost of contributions to the pension guarantee association, among other things.
| Earnings indicators of the EnBW group (adjusted) in € millions |
1/1– 30/9/2009 |
1/1– 30/9/2008 |
Variance % |
1/1– 31/12/2008 |
|---|---|---|---|---|
| Adjusted investment result | 205.3 | 169.5 | 21.1 | 217.3 |
| Adjusted financial result1 | -510.7 | -337.1 | -51.5 | -394.7 |
| Adjusted income taxes1 | -342.9 | -313.3 | -9.4 | -420.7 |
| Adjusted group net profit1 | 754.3 | 886.5 | -14.9 | 1,195.8 |
| of which profit shares attributable to minority interests |
(37.2) | (64.6) | -42.4 | (97.0) |
| of which profit shares attributable to equity holders of EnBW AG |
(717.1) | (821.9) | -12.8 | (1,098.8) |
1 The figures of the comparative periods have been restated.
The 21.1% growth in the adjusted investment result to € 205.3 million can, in particular, be traced back to the improved results of operations of foreign entities accounted for using the equity method and firsttime consolidation of EWE AG as of July 2009. Higher interest expenses in light of the group's higher gearing level and lower income from securities resulted in a significantly lower adjusted financial result of € -510.7 million. Adjusted income taxes were € 29.6 million above the prior year, which gives rise to the higher adjusted tax rate of 31.3%. Due to the aforementioned effects, the adjusted group net profit in terms of the profit shares attributable to the equity holders of EnBW AG fell by € 104.8 million to € 717.1 million in the first nine months of 2009. If the consolidation effects in 2009 are also taken into consideration for the adjusted group net profit of the corresponding period of the prior year, the drop in adjusted group net profit in terms of the profit shares attributable to the equity holders of EnBW AG amounts to -10.9% or € 88.1 million.
| Non-operating result of the EnBW group in € millions | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
1/1– 31/12/2008 |
|---|---|---|---|
| Income from the reversal of other provisions | 52.1 | 15.4 | 48.4 |
| Income/expenses from changes in nuclear power provisions | -34.6 | 23.5 | -24.1 |
| Other effects, nuclear power | 0.0 | 0.0 | -28.5 |
| Expenses from restructuring | -3.0 | -14.4 | -11.8 |
| Other non-operating result | 12.7 | -8.7 | -39.5 |
| Non-operating EBITDA | 27.2 | 15.8 | -55.5 |
| Impairment losses | -10.5 | -61.8 | -270.2 |
| Non-operating EBIT | 16.7 | -46.0 | -325.7 |
| Non-operating investment result | 9.4 | 27.9 | 34.0 |
| Non-operating financial result | -20.0 | -25.9 | -78.4 |
| Non-operating income taxes | -5.2 | 6.1 | 82.4 |
| Non-operating group net profit | 0.9 | -37.9 | -287.7 |
| of which profit shares attributable to minority interests | (5.2) | (1.9) | (-68.2) |
| of which profit shares attributable to equity holders of EnBW AG |
(-4.3) | (-39.8) | (-219.5) |
In the first nine months of 2009, the non-operating EBIT of the EnBW group came to € 16.7 million following the clearly negative figure of € -46.0 million in the prior year. This positive change is essentially attributable to higher income from the reversal of other provisions and a lower level of impairment losses. The increase on the prior year in the expenses from changes in nuclear power provisions had a negative effect. The non-operating investment result remained below the prior-year level because a gain on disposal had been recorded in this item in the prior year. Impairment losses on securities, performed in the first quarter of 2009 in particular, brought about a negative non-operating financial result of € -20.0 million. In total, the non-operating group net profit in terms of the profit shares attributable to the equity holders of EnBW AG came to € -4.3 million (prior year: € -39.8 million).
A cash flow from operating activities totalling around € 1.6 billion in the first nine months of 2009 safeguards EnBW's sound internal financing power. Furthermore, the company has various debt instruments at its disposal, unutilised in many cases. EnBW has a commercial paper programme involving a total of € 2.0 billion (undrawn as of 30 September 2009). There is a syndicated credit line for € 2.5 billion, likewise undrawn as of 30 September. A total of € 1.0 billion of the credit line revolves on an annual basis and was successfully extended in May 2009. Of the existing Euro Medium Term Note (EMTN) programme with a line of € 7.0 billion, € 5.2 billion had been undrawn as of 30 September 2009. The original € 5.0 billion of the EMTN programme was extended by a further € 2.0 billion in April 2009 in connection with the investment programme. On 1 July 2009, EnBW successfully placed two bonds with a total volume of € 1.35 billion, one medium-term (6 years, interest: 4.125%) and one long-term (30 years, interest: 6.125%). The group has further issued bonds totalling CHF 500 million. In 2009, there will be no need to refinance bonds already issued; in 2010, the volume that needs refinancing is € 217 million. This wide range of instruments provides EnBW with a great degree of flexibility in its scheduled project financing.
EnBW continued its investment programme in the third quarter of the current fiscal year. Over the period from January to September 2009, total investment came to € 3,823.0 million. This means an increase of € 2,966.1 million on the prior-year period. Of total investment, 21.1% or € 805.9 million related to capital expenditure on intangible assets and property, plant and equipment. Of this amount, capital expenditures of € 373.5 million were made in the electricity upstream segment, focusing on expanding EnBW's power stations. Material projects in this field include the construction of the RDK 8 hard coal power station in Karlsruhe and the hydro-electric power station in Rheinfelden as well as the offshore wind farms. In the energy and environmental services segment, we invested in the construction of a substitute fuel power plant in Eisenhüttenstadt. All in all, capital expenditure in the first nine months was € 24.8 million higher than in the prior year.
ENBW SHARE MANAGEMENT REPORT FINANCIAL STATEMENTS SERVICE › The EnBW group
EnBW's financial acquisitions in the reporting period from January to September 2009 came to € 3,017.1 million, and consequently constitute a share of 78.9% of total investment. Investments increased by € 2,941.3 million in comparison to the prior year. Material items included the acquisition of shares in EWE, the purchases of shares in Lippendorf and Bexbach power stations, the joint venture with Borusan Holding in Turkey and the purchase of onshore wind farms from Plambeck Neue Energien AG in Lower Saxony and Brandenburg.
Over the period between January and September 2009, EnBW made divestitures of € 109.6 million, essentially consisting of network disposals as well as construction cost and investment subsidies. Total net investments thus came to € 3,713.4 million in the reporting period.
| Net cash investments of the EnBW group in € millions |
1/1– 30/9/2009 |
1/1– 30/9/2008 |
Variance % |
1/1– 31/12/2008 |
|---|---|---|---|---|
| Electricity upstream | 373.5 | 339.7 | 9.9 | 538.1 |
| Electricity downstream | 249.2 | 249.4 | -0.1 | 400.1 |
| Gas | 34.6 | 38.7 | -10.6 | 65.3 |
| Energy and environmental services | 148.6 | 153.3 | -3.1 | 253.1 |
| Capital expenditures on intangible assets and property, plant and equipment1 |
805.9 | 781.1 | 3.2 | 1,256.6 |
| Cash paid for the acquisition of fully and proportionately consolidated entities and entities accounted for using the equity method2 |
3,013.9 | 53.7 | - | 107.6 |
| Cash paid for the acquisition of equity investments3 |
3.2 | 22.1 | -85.5 | 40.0 |
| Total investments | 3,823.0 | 856.9 | - | 1,404.2 |
| Cash received from disposals of intangible assets and property, plant and equipment |
-70.7 | -10.6 | - | -58.2 |
| Cash received from construction cost and investment subsidies |
-38.9 | -56.4 | -31.0 | -79.0 |
| Cash received from the sale of fully and proportionately consolidated entities and entities accounted for using the equity method4 |
0.0 | -5.4 | - | -62.4 |
| Cash received from the sale of investments3 |
0.0 | -70.5 | - | -70.5 |
| Total divestitures | -109.6 | -142.9 | -23.3 | -270.1 |
| Net investment (effect on cash) | 3,713.4 | 714.0 | - | 1,134.1 |
1 The figures of the comparative periods have been restated. 2 This does not include cash and cash equivalents acquired. In the reporting period, these amount to € 11.2 million (1/1–30/9/2008: € 3.6 million; 1/1–31/12/2008: € 3.6 million). 3 Without investments held as financial assets. 4 This does not include cash and cash equivalents disposed of upon sale. In the reporting period, these amount to € 0.0 million
(1/1–30/9/2008: € 2.2 million; 1/1–31/12/2008: € 2.2 million).
| Free cash flow in € millions1 | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
Variance % |
1/1– 31/12/2008 |
|---|---|---|---|---|
| FFO electricity upstream | 1,317.2 | 1,466.8 | -10.2 | 1,692.8 |
| FFO electricity downstream | 235.0 | 216.7 | 8.4 | 237.9 |
| FFO gas | 159.5 | 179.6 | -11.2 | 278.0 |
| FFO energy and environmental services | 152.1 | 143.7 | 5.8 | 208.3 |
| FFO holding/consolidation | -100.0 | -78.2 | -27.9 | -91.4 |
| Funds from operations (FFO) before taxes and financing, total |
1,763.8 | 1,928.6 | -8.5 | 2,325.6 |
| Change in assets and liabilities from operating activities |
-59.4 | -223.6 | 73.4 | -536.1 |
| Income tax paid | -154.2 | -221.5 | 30.4 | -265.6 |
| Cash flow from operating activities | 1,550.2 | 1,483.5 | 4.5 | 1,523.9 |
| Capital expenditures on intangible assets and property, plant and equipment |
-805.9 | -781.1 | 3.2 | -1,256.6 |
| Cash received from disposals of intangible assets and property, plant and equipment |
70.7 | 10.6 | - | 58.2 |
| Cash received from construction cost and investment subsidies |
38.9 | 56.4 | -31.0 | 79.0 |
| Free cash flow | 853.9 | 769.4 | 11.0 | 404.5 |
1 The figures of the comparative periods have been restated.
Despite a 3.3% increase in EBITDA, the funds from operations (FFO) before taxes and financing fell by € 164.8 million from the prior-year figure of € 1,928.6 million to € 1,763.8 million. The decrease in FFO essentially stems from the electricity upstream segment, as the increase in the market values of derivatives in the reporting period is treated as non-cash income. In contrast, the cash flow from operating activities grew by 4.5% to € 1,550.2 million. This is attributable to a much smaller increase in the balance of assets and liabilities from operating activities than in the prior year. In addition, a lower amount of income taxes was paid in the past reporting period than in the prior-year period. The withholding tax payments made in prior years resulted in tax refunds in the first nine months of 2009. The tax prepayments made in the current reporting period are similarly lower than in the prior year. Furthermore, the corporate income tax credit that was paid out is included for the first time in the reporting period. The income taxes paid in the prior year additionally included back payments relating to other periods. Compared to the prior year, the free cash flow rose significantly by € 84.5 million to € 853.9 million. This development was favoured by higher cash receipts from the sale of intangible assets and property, plant and equipment which more than compensated for the rise in capital expenditure.
| Cash flow statement in € millions1 | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
Variance % |
1/1– 31/12/2008 |
|---|---|---|---|---|
| Cash flow from operating activities | 1,550.2 | 1,483.5 | 4.5 | 1,523.9 |
| Cash flow from investing activities | -4,117.3 | -261.5 | - | -366.4 |
| Cash flow from financing activities | 917.7 | -919.2 | - | 598.6 |
| Net change in cash and cash equivalents | -1,649.4 | 302.8 | - | 1,756.1 |
| Net foreign exchange difference | 4.2 | 5.7 | -26.3 | 10.6 |
| Change in cash and cash equivalents | -1,645.2 | 308.5 | - | 1,766.7 |
ENBW SHARE MANAGEMENT REPORT FINANCIAL STATEMENTS SERVICE › The EnBW group
The cash flow from investing activities amounted to € -4,117.3 million in the reporting period, after € -261.5 million in the prior year. This cash outflow is mainly the result of a significant increase in cash paid for the acquisition of fully and proportionately consolidated entities and entities accounted for using the equity method as well as a lower level of cash received from the sale of financial instruments. The increase in financial liabilities gave rise to an inflow of cash from financing activities of € 917.7 million, following a cash outflow of € -919.2 million in the prior-year period. Taking the slightly positive effects of exchange rate differences into account, this led to the cash and cash equivalents of the EnBW group falling by € 1,645.2 million to € 1,439.3 million as of 30 September 2009 in comparison to the end of fiscal 2008. This includes cash and cash equivalents of € 76.7 million recognised as assets held for sale.
Total assets of the EnBW group grew by 3.8% in comparison to 31 December 2008 to € 34,179.8 million. The investments in GESO Beteiligungs- und Beratungs-AG and its subsidiaries were reclassified in the balance sheet as assets held for sale. In line with this, the item liabilities directly associated with the assets classified as held for sale was created on the liabilities side. The increase in non-current assets and the fall in cash and cash equivalents is, in this context, due to the purchase of shares in Lippendorf and Bexbach power stations as well as in EWE AG. Financial liabilities similarly increased in light of these transactions. The lower level of trade receivables and payables was caused by receivables and liabilities in connection with CO2 allowances falling at the same time. As of the cut-off date of 30 September 2009, the group's equity ratio came to 17.8% in comparison to 17.0% at the end of 2008.
The € 2,906.8 million increase in net financial liabilities to € 5,825.3 million as of 30 September 2009 results from the lower level of cash and cash equivalents and the bonds issued in connection with implementation and financing of the investment programme. Net debt increased by € 2,673.7 million as a consequence and came to € 9,507.2 million as of the end of the third quarter. The proportionately lower level of growth in net debt in comparison to net financial liabilities is attributable to the increase in the market value of our securities.
| Net debt in € millions | 30/9/2009 | 31/12/2008 | Variance % |
|---|---|---|---|
| Cash1 | -1,063.7 | -2,216.3 | -52.0 |
| Short-term investments1 | -156.0 | -152.4 | 2.4 |
| Cash and cash equivalents1 | -1,219.7 | -2,368.7 | -48.5 |
| Bonds2 | 5,431.6 | 4,110.3 | 32.1 |
| Liabilities to banks | 1,039.1 | 556.4 | 86.8 |
| Other financial liabilities | 574.3 | 620.5 | -7.4 |
| Financial liabilities2 | 7,045.0 | 5,287.2 | 33.2 |
| Net financial liabilities1,2 | 5,825.3 | 2,918.5 | 99.6 |
| Pension and nuclear power provisions | 9,227.4 | 9,013.1 | 2.4 |
| Long-term investments and loans | -5,055.1 | -4,231.4 | 19.5 |
| Cash and cash equivalents of the special funds and short term investments to cover the pension and nuclear power |
|||
| provisions | -647.6 | -1,218.7 | -46.9 |
| Liabilities from put options | 307.1 | 514.4 | -40.3 |
| Other | -149.9 | -162.4 | -7.7 |
| Net debt2 | 9,507.2 | 6,833.5 | 39.1 |
1 Without cash and cash equivalents of the special funds and short-term investments to cover the pension and nuclear power provisions. 2 Adjusted for valuation effects from interest-induced hedging transactions.
Transactions with related parties are disclosed in the notes and explanations contained in the interim consolidated financial statements.
| Employees of the EnBW group1 | 30/9/2009 | 31/12/2008 | Variance % |
|---|---|---|---|
| Electricity upstream | 4,714 | 4,546 | 3.7 |
| Electricity downstream | 6,490 | 7,130 | -9.0 |
| Gas | 734 | 923 | -20.5 |
| Energy and environmental services | 8,472 | 7,282 | 16.3 |
| Holding | 587 | 620 | -5.3 |
| Total | 20,997 | 20,501 | 2.4 |
| Full-time equivalents2 | 20,022 | 19,610 | 2.1 |
1 Number of employees without apprentices/trainees and without inactive employees. 2 Number of employees translated into full-time equivalents.
As of 30 September 2009, the headcount of the EnBW group increased by 496 to 20,997 in comparison to the end of 2008. The third quarter of the current fiscal year saw the headcount grow by 188 employees. The fact that the group hired 270 of its trainees on permanent contracts was one of the main reasons for the increase in the number of employees over the reporting period. In addition, the company's expansion plans involved numerous new hires in various areas. The significant increase in headcount in the energy and environmental services segment is essentially the result of the changed allocation of employees from the electricity downstream, gas and holding segments. Furthermore, part of ENSO Energie Sachsen Ost AG was integrated into the operations of the energy and environmental services segment. These two transactions took place in the first half of 2009.
There were 334 trainee positions, apprenticeships and joint student placements available once again in 2009 at the core companies in Baden-Württemberg. The new training year started at 14 company locations on 7 September of this year. For young people's start to their professional career, EnBW offers training in technical or office jobs, or courses of study at universities of cooperative education and universities of applied sciences. All trainees, apprentices and students with good grades are taken on for at least twelve months. The EnBW group as a whole employs more than 1,300 apprentices and students.
EnBW's newly structured career section of its website http://www.enbw.com/karriere also went online in September 2009. The aim behind this new concept is to design information and positions offered to better meet the needs of various target groups. A clearer structure was supplemented with new content, thus increasing user-friendliness. In addition, our trainees report on their day-to-day jobs at EnBW in their own career blog (www.enbw.com/karriereblog). This gives prospective applicants a detailed and realistic insight into the company.
Training activities and the restructuring of the career site are both strategic decisions for EnBW to safeguard its supply of suitably trained junior employees and personnel recruitment.
E-mobility: EnBW is committed to the expansion of electronic mobility (e-mobility) and has begun putting it into practice. As the leader of the two-year MEREGIO mobil research project, EnBW investigates, in cooperation with other research partners, the possibility of integrating electric vehicles in a smart home by using intelligent charging stations. A reliable and standardised charging infrastructure is needed to make it possible for electric vehicles to be used. EnBW is planning to spend several millions in investments to this end. As part of the research project for Stuttgart as a model region that has a term of two years, EnBW launched the application process in the third quarter of 2009 for awarding 500 electric scooters to private households. Plans are to have a total of 700 of these scooters driving around Stuttgart by mid-2011. In view of this aim, EnBW plans to set up 700 charging stations, thereby also collecting information on the test drivers' driving and charging behaviour.
H2 Mobility: In order to examine the possibility of establishing a nationwide infrastructure to fuel electric vehicles with hydrogen, representatives from leading industrial companies signed a Memorandum of Understanding (MoU) in September this year. EnBW is one of the partners of this initiative. The common goal is to commercialise the use of electric vehicles on the basis of hydrogen and fuel cell technology over the next few years. In a first stage, the various options will be investigated that are available to establish a nationwide network of hydrogen fuelling stations by 2011. Should there prove to be economic potential, the second phase will focus on establishing a fuelling station network. Like battery electric vehicles, fuel cell cars need a reliable infrastructure to really get going. EnBW will support both drive technologies with its technical expertise in power generation and its high proportion of CO2-free electricity.
Solar2Fuel: The objective of the Solar2Fuel project is to use sunlight to obtain climate-neutral hydrocarbons such as methanol from carbon dioxide (CO2) to fuel internal combustion engines or fuel cells. This project in cooperation with BASF SE and the universities of Heidelberg and Karlsruhe has won an award in the Spitzencluster competition by Germany's Federal Ministry of Education and Research. With regard to effective climate protection, rendering industrial waste gas usable constitutes great progress in comparison to mere capture and storage of CO2. The technical principle is based on novel photoactive materials consisting of functionalised semi-conductor nanoparticles. At the same time, attention is paid to employing favourably priced materials in order to keep CO2 avoidance costs to a minimum.
An agreement signed on 12 October 2009 transfers a 16.7% shareholding in Bexbach hard coal power station from STAWAG Energie GmbH to EnBW. The acquisition of STAWAG's shareholding means that EnBW now has 714 MW of installed capacity at Bexbach and expands its electricity procurement right to 100%. EnBW already acquired 8.3% of the shares in Bexbach hard coal power station from E.ON in May this year.
The takeover announced in spring 2009 of the 75.1% shareholding in the project company STKW Energie Dörpen GmbH & Co. KG in order to develop a hard coal power station at the Dörpen im Emsland (Lower Saxony) location was completed in October 2009. Following closing, EnBW also assumed management of the project. BKW Energie AG (BKW) still holds a 24.9% interest in the project company.
As a result of the decision to concentrate on its core segments, EnBW sold its minority interests of 49% in the Gegenbauer group in November 2009 with economic effect as of 31 December 2009.
ENBW SHARE MANAGEMENT REPORT FINANCIAL STATEMENTS SERVICE › Risk management
The effects of the economic crisis and the competitive situation mean that individual risk factors for the EnBW group have deteriorated in the course of the year. The group's risk exposure consequently increased and remains at a high level; there are no discernable risks to the continued existence of the group.
The risk management of the EnBW group covers the identification, analysis as well as the assessment and reporting of risks. This process facilitates the early detection of risks in an appropriate manner. Risk management is divided into central and local units. The group's risk management at the level of the holding company is responsible for specifying group-wide methods and processes and determining the group's risk exposure and risk reporting to the Board of Management. The risks for the EnBW group can be subdivided into systemic and industry risks, strategic risks, operating risks, IT risks, personnel risks, financial risks and other risks. Building on the reporting contained in the 2008 annual report and the previous quarters of 2009, we report here on the material risks that have changed or come into being in the third quarter.
Development of the economy: The major economic collapse resulted in a palpable fall in overall demand for electricity and gas – particularly from industry – in the first two quarters. On account of reduced production levels, EnBW's customers have also reduced demand but the extent of the decline in sales varies, however, from one industry to another. The reduction in consumption increases EnBW's sales risks, which may lead to erosion of profit margins. The decline in quantities sold translates into a similar fall in the quantity transmitted through EnBW's grids and to a drop in network revenues. In addition, those quantities already purchased for sale will have to be resold if they are not purchased. As the price on the wholesale market has fallen significantly in comparison to the prior year, there is the risk of quantities being resold at terms below procurement prices. Sales increased in the third quarter in comparison to the first half of the year. Generally speaking, the outlook for economic development is revealing a slightly positive trend.
Market and price risks: Both competitive and price risks have increased in the quarter under review. In the gas segment, the risk of a reduction in the sales margin has increased. This is primarily the result of more intense competition and the development of the oil price. Similarly, we are also exposed to strong and dynamic competition in the electricity segment, which may well have a negative impact on quantities and margins. Furthermore, a lower level of revenue must be anticipated due to the fall in wholesale market prices. In the event of there being a third-party network operator, the increase in network costs constitutes a risk to distribution earnings.
Anti-trust pricing reviews: Pricing in the area of district heating has now also attracted the attention of the anti-trust authorities. EnBW group entities are also affected by the anti-trust reviews pursuant to Secs. 19 and 29 German Act against Restraints on Competition (GWB). We are currently in contact with the respective antitrust authorities. In the area of heater current, none of the entities of the EnBW group are affected by the antitrust review or only as a benchmark because of their favourable pricing levels.
Renewable Energies Act: An ordinance on the cost allocation mechanism under the German Renewable Energies Act (EEG) was passed, stipulating financial transfer as the chosen method. Uncertainties in the marketing of renewable energy and the forecasting of cost allocation under the EEG constitute risks both for transmission system operators and distributors.
Implementation of the strategy: The group's strategy includes an extensive investment programme. Construction projects to safeguard and expand EnBW's generation capacities entail exposure to three material risks: Largescale projects are subject to approval by the authorities which may be delayed in some cases and projects may have to be abandoned if approval is not forthcoming. As a consequence, any investments already made will have to be written off. The current market environment may give rise to financing risks with consequences for the overall costs of the project. Furthermore, the implementation phase of a project generally entails quality, deadline and cost risks. EnBW's objective is to counter these risks by playing an active role in drafting contracts and performing comprehensive claim management.
Loss of franchises: Competition for the franchises we hold has generally increased. At the same time, towns and municipalities are increasingly demonstrating an interest in returning their electricity, gas and water supply networks to public ownership. These moves back to municipal ownership additionally increase the risk of loss of franchises. EnBW underlines its role as a strong partner in Baden-Württemberg through active franchise and relationship management with regard to towns and municipalities.
Counterparty risk: The ongoing economic crisis entails a higher risk of bad debts, as an increase in the number of companies becoming insolvent can be anticipated. It is also expected for there to be increased delays in the payment of receivables. EnBW limits the potential negative impact by means of active management of customer and trading partner credit risks. The increasing number of company insolvencies triggered additional burdens arising from the obligations from the cross-industry pension guarantee association.
Asset management: In pursuit of its conservative cash investment strategy, EnBW is guided by the aims of achieving a good credit standing, a high level of liquidity and broad diversification of the investments. The positive price developments as of the second quarter reduced the heightened risk of impairment with regard to the portfolio of securities as a consequence of developments on the capital markets in conjunction with increased volatility. Irrespective of this, the nature of the markets means that there remains a risk of target returns not being achieved.
The risk situation of the EnBW group is characterised by a higher level of risk primarily compared to prior quarters due to the effects of the financial and economic crisis as well as the prevailing competitive pressure. With regard to earnings, the risks from resale and decreased sales – which have become reality in some cases – made themselves felt. Extraordinary burdens on earnings may arise from movements on the capital markets as financial assets entail the risk of impairment losses becoming necessary. Impairment losses of this kind were already performed in the current fiscal year.
In our opinion, there are no discernable risks to the continued existence of the company either from individual risks or from the overall risk position of the EnBW group.
The effects of the marked negative economic development placed a somewhat heavier burden on EnBW's business development than previously anticipated. With regard to adjusted EBIT, we now anticipate a figure for 2009 as a whole that is slightly below the level seen in fiscal 2008. One of the primary factors responsible for the decline now anticipated is the significant drop in load and the related fall in sales. In conjunction with the burdens relating to the financial results due to a certain extent to the financial crisis, adjusted group net profit is expected to fall short of the prior-year figure.
In the following forecast, we take an in-depth look at the expected future development of EnBW and the business environment for the current fiscal year. It can be seen that the present economic environment increases the uncertainty with regard to predictions of future development, as the premises on which they were based can quickly become outdated. The framework conditions give rise to opportunities and risks for the business development of EnBW. Current risks are summarised in the section on risk management. An exhaustive presentation of business development up to 2010 can be found in our 2008 annual report.
Overall economic developments: The global economic situation seems to be stabilising towards the end of 2009. According to a study published in October this year, the International Monetary Fund anticipates a 1.1% drop in global GDP for 2009. In its most recent forecast, the European Commission continues to reckon with a 4.0% contraction in the euro area as a whole. Forecasts for the development of GDP in Germany recently saw minor upward corrections. For example, the European Commission now anticipates a decline of 5.1% (previously: 5.4%). The German federal government currently anticipates a drop between 4.0% and 5.0%; in the spring it was still working on the assumption of a fall of around 6.0%.
Electricity market: In phases of strong growth or contraction in particular, the overall economic development has a major influence on electricity demand, in particular on the part of industry. Due to the significant drop in industrial production over the year so far in comparison to the prior year, a palpable decline in electricity consumption in Germany must be anticipated for the year as a whole. The decisive factors in the level of future spot market prices are, alongside development of demand, the development of the price of primary energy sources and CO2 allowances as well as the availability of power stations. Generally speaking, it can be assumed that the high level of volatility on the spot market will continue. It is primarily due to the increasing quantity of wind energy being fed in. Prices on the forward market reflect the expectations of market participants for the future price level on the spot market. As the market currently anticipates rising prices for primary energy sources and CO2 allowances over the coming years, the prices on the wholesale market for electricity deliveries in later years are higher than those for the front year (2010).
CO2 market: One of the major factors in the development of the price of CO2 allowances is future energy demand and the related volume of emissions. This means that the economic development is also of great significance in this context. Two other material factors that may well affect future prices are the outcome of the climate conference in Copenhagen in December 2009 and the decision on how the auctions of allowances will be structured as of 2013 which is expected to be made next year.
Gas market: The gas market continues to face weak demand. At the same time, supply is robust as reflected in the current low prices for deliveries in the near future (spot market). A price level on the spot market below that seen in prior years is still conceivable. On the other hand, the average price for imported gas (border price) will increase once again over the next few months in light of higher oil prices.
Acquisitions and strategy: With a view to promoting its focused international expansion as part of its growth strategy, EnBW formed a joint venture together with the Turkish industrial conglomerate Borusan Holding in April this year. So far, two projects have begun in the area of hydro-electric power with a total output of 50 MW. The facilities are scheduled to be commissioned in 2011. A wind power facility already connected to the grid will be expanded to an output of as much as 60 MW. All in all, the joint venture is planning to build power stations, primarily in the area of renewable energy, with an output of 2,000 MW (1,000 MW in the next few years).
The Federal Anti-Trust Office has approved EnBW's acquisition of a 26% shareholding in EWE AG, subject to conditions. One of the conditions is the sale of either EWE's shares in VNG or the sale of EnBW's GESO Beteiligungs- und Beratungs-AG to a third party. In the meantime, the Anti-Trust Office has approved EnBW's plans to acquire a 48% shareholding in VNG from EWE. EnBW's options for action under this constellation are currently being analysed and assessed. At the same time, EWE and EnBW have already kicked off their first joint projects.
On the path towards its objective of expanding generation capacities in Germany, EnBW took over power station capacities of 525 MW at Lippendorf and Bexbach from E.ON in May 2009 and a further 159 MW at Bexbach from STAWAG as of 1 October 2009. On 30 September 2009, EnBW came to an agreement with E.ON on the acquisition of a 50.4% share in a hard coal power station in Rostock and the right to purchase electricity from Buschhaus brown coal power station. The two transactions expand the company's generation portfolio by a further 415 MW, which means that generation capacities will be expanded by some 1,100 MW. At the same time, an agreement was signed with E.ON on the exchange of EnBW's electricity procurement rights from EDF's French nuclear power plants for electricity quantities from E.ON's German nuclear power plants relating to 800 MW. Both the exchange and the capacities in Rostock and Buschhaus effective as of 1 January 2010 are subject to approval by the anti-trust authorities.
Financing and capital expenditure: Following EnBW's issue of two bonds with a total volume of € 1.3 billion in July this year, no further financing requirements are anticipated for fiscal 2009. We are further budgeting a net investment volume of some € 7.7 billion over the period from 2009 to 2011 for our capital expenditure and acquisition projects. In addition to the budgeted disposal of GESO, this figure takes into consideration further divestitures of around € 1.5 billion. Net debt will is expected to increase by around € 2 billion by 2011.
Anticipated development of earnings: Although the first signs indicate that the economic downswing has bottomed out, it is becoming apparent that the effects of the economic crisis have placed a heavier burden on EnBW's business than previously expected. This is especially true of reduced sales in the area of electricity and gas. As a consequence of the increased burdens, we now expect a slight drop in adjusted EBIT at group level. Specifically, we anticipate the following developments: Our budgeting in the electricity upstream segment (generation and trading) continues to be based on the assumption of increasing earnings in fiscal 2009 in comparison to the prior year. We expect a drop in earnings in comparison to the forecast in the 2008 annual report and to the first half of 2009 due to the reduced level of unit sales for the current fiscal year in the electricity downstream segment (sales and regulatory area). Higher network user charges are offset by increased costs from connecting offshore wind farms to the grid and from the procurement of energy for the compensation of losses as well as a lower distribution earnings forecast compared to the prior year. Contrary to the forecast for the first half of 2009, we now expect to break even after consolidation. This is attributable to the fact that the purchased power station capacities made a smaller contribution to profit than budgeted but this is expected to have a positive effect on the purchase price. The increasing number of company insolvencies triggered additional burdens at group level arising from the obligations from the crossindustry pension guarantee association.
› Forecast
Annual Report 2008 Q3 2009
| Development of earnings 2009 (adjusted EBIT) | |
|---|---|
| compared to the prior year |
| Adjusted EBIT, group | stable | falling slightly (0% to 3%) |
|---|---|---|
| Consolidation | break-even | |
| Energy and environmental services segment | stable | stable |
| Gas segment | falling (-5% to -10%) | falling (-5% to -10%) |
| Electricity downstream segment | stable | falling (-5% to -10%) |
| Electricity upstream segment | rising (4% to 6%) | rising (4% to 6%) |
With regard to the adjusted group net profit, we anticipate earnings to fall below the prior-year level. This is due to the delays in the acquisition of the shares in EWE and negative effects arising from the economic and financial crisis on minority interests and in the area of asset management.
| € millions1 | 1/7– 30/9/2009 |
1/7– 30/9/2008 |
1/1– 30/9/2009 |
1/1– 30/9/2008 |
|---|---|---|---|---|
| Revenue including electricity and natural | ||||
| gas tax | 3,751.0 | 3,824.9 | 12,435.7 | 12,458.5 |
| Electricity and natural gas tax | -222.4 | -235.7 | -732.6 | -797.9 |
| Revenue | 3,528.6 | 3,589.2 | 11,703.1 | 11,660.6 |
| Changes in inventories | 3.2 | 9.3 | 12.1 | 22.0 |
| Own work capitalised | 17.8 | 14.8 | 37.5 | 34.8 |
| Other operating income | 103.7 | 86.6 | 452.5 | 506.6 |
| Cost of materials | -2,527.8 | -2,625.8 | -8,340.9 | -8,434.9 |
| Personnel expenses | -375.0 | -359.5 | -1,159.4 | -1,095.2 |
| Other operating expenses | -199.1 | -172.9 | -673.7 | -728.3 |
| EBITDA | 551.4 | 541.7 | 2,031.2 | 1,965.6 |
| Amortisation and depreciation | -201.3 | -195.6 | -611.9 | -644.2 |
| Earnings before interest and taxes (EBIT) | 350.1 | 346.1 | 1,419.3 | 1,321.4 |
| Investment result | 42.0 | 24.0 | 214.7 | 197.4 |
| of which net profit from entities | ||||
| accounted for using the equity method | (28.1) | (12.7) | (167.1) | (123.4) |
| of which other investment income | (13.9) | (11.3) | (47.6) | (74.0) |
| Financial result | -193.7 | -151.6 | -530.7 | -363.0 |
| of which finance revenue | (88.7) | (82.9) | (287.6) | (289.6) |
| of which finance costs | (-282.4) | (-234.5) | (-818.3) | (-652.6) |
| Earnings before tax (EBT) | 198.4 | 218.5 | 1,103.3 | 1,155.8 |
| Income taxes | -83.0 | -49.4 | -348.1 | -307.2 |
| Group net profit | 115.4 | 169.1 | 755.2 | 848.6 |
| of which profit shares attributable to minority interests |
(13.9) | (20.6) | (42.4) | (66.5) |
| of which profit shares attributable to equity holders of EnBW AG |
(101.5) | (148.5) | (712.8) | (782.1) |
| Shares outstanding (millions), weighted average |
244.257 | 244.257 | 244.257 | 244.257 |
| Earnings per share from continuing operations (€)2 |
0.42 | 0.61 | 2.92 | 3.20 |
| Earnings per share from group net profit (€)2 |
0.42 | 0.61 | 2.92 | 3.20 |
1 The figures of the comparative periods have been restated. 2 Basic and diluted; in relation to the profit shares attributable to the equity holders of EnBW AG.
| € millions1 | 1/7– 30/9/2009 |
1/7– 30/9/2008 |
1/1– 30/9/2009 |
1/1– 30/9/2008 |
|---|---|---|---|---|
| Group net profit | 115.4 | 169.1 | 755.2 | 848.6 |
| Difference from currency translation | 19.1 | 4.9 | 6.8 | 44.3 |
| Cash flow hedge | -151.6 | -127.6 | -2.0 | -50.3 |
| Available-for-sale financial assets | 254.6 | -144.5 | 307.0 | -351.6 |
| Entities accounted for using the equity method |
93.1 | 0.0 | -85.5 | 49.9 |
| Income taxes on income and expenses recognised directly in equity |
20.7 | 34.2 | 16.2 | 19.1 |
| Other comprehensive income | 235.9 | -233.0 | 242.5 | -288.6 |
| Total comprehensive income | 351.3 | -63.9 | 997.7 | 560.0 |
| of which profit shares attributable to minority interests |
(16.9) | (20.8) | (51.6) | (62.1) |
| of which profit shares attributable to equity holders of EnBW AG |
(334.4) | (-84.7) | (946.1) | (497.9) |
| Assets Non-current assets Intangible assets 1,845.4 1,687.8 1,657.9 Property, plant and equipment 11,692.4 11,585.3 11,417.2 Investment properties 69.9 86.6 87.7 Entities accounted for using the equity method 3,901.3 1,932.2 1,856.5 Other financial assets 5,747.8 4,960.3 5,734.4 Trade receivables 434.2 400.7 372.6 Income tax refund claims 207.2 228.2 253.8 Other non-current assets 198.5 204.1 179.8 Deferred taxes 31.3 28.7 6.0 24,128.0 21,113.9 21,565.9 Current assets Inventories 955.8 862.9 732.7 Financial assets 587.9 584.7 727.6 Trade receivables 1,729.6 3,181.5 2,108.7 Income tax refund claims 244.7 305.0 255.1 Other current assets 3,606.1 3,800.2 1,725.6 Cash and cash equivalents 1,362.6 3,084.5 1,317.8 8,486.7 11,818.8 6,867.5 Assets held for sale 1,565.1 4.0 3.4 10,051.8 11,822.8 6,870.9 34,179.8 32,936.7 28,436.8 Equity and liabilities Equity Group shares Subscribed capital 640.0 640.0 640.0 Capital reserve 22.2 22.2 22.2 Revenue reserves 4,541.5 4,319.7 3,788.4 Revaluation reserve in accordance with IFRS 3 49.6 49.6 49.6 Treasury shares -204.1 -204.1 -204.1 Total net income recognised in equity 194.0 -39.3 756.0 5,243.2 4,788.1 5,052.1 Minority interests 825.5 803.4 950.3 6,068.7 5,591.5 6,002.4 Non-current liabilities Provisions 9,535.7 9,307.8 8,989.1 Deferred taxes 1,616.1 1,634.8 1,617.1 Financial liabilities 6,725.3 4,925.1 3,364.2 Other liabilities and subsidies 2,083.0 2,091.9 2,127.0 19,960.1 17,959.6 16,097.4 Current liabilities Provisions 873.9 1,109.1 1,131.3 Financial liabilities 362.7 394.7 588.3 Trade payables 1,888.5 3,400.5 2,323.3 Income tax liabilities 40.9 12.3 6.3 Other liabilities and subsidies 4,213.5 4,469.0 2,279.9 7,379.5 9,385.6 6,329.1 Liabilities directly associated with the assets classified as held for sale 771.5 0.0 7.9 8,151.0 9,385.6 6,337.0 34,179.8 32,936.7 28,436.8 |
€ millions1 | 30/9/2009 | 31/12/2008 | 1/1/2008 |
|---|---|---|---|---|
1 The figures of the comparative periods have been restated.
› Cash flow statement
| € millions1 | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
|---|---|---|
| 1. Operating activities | ||
| EBITDA | 2,031.2 | 1,965.6 |
| Change in non-current provisions | -148.8 | -185.5 |
| Gain/loss on disposal of non-current assets | -18.9 | -2.5 |
| Other non-cash expenses/income | -99.7 | 151.0 |
| Funds from operations (FFO) before taxes and financing | 1,763.8 | 1,928.6 |
| Change in assets and liabilities from operating activities | -59.4 | -223.6 |
| Inventories | (-13.6) | (-123.8) |
| Net balance of trade receivables and payables | (-123.9) | (1.3) |
| Net balance of other assets and liabilities | (162.9) | (4.8) |
| Current provisions | (-84.8) | (-105.9) |
| Income tax paid | -154.2 | -221.5 |
| Cash flow from operating activities | 1,550.2 | 1,483.5 |
| 2. Investing activities | ||
| Capital expenditures on intangible assets and property, plant and equipment | -805.9 | -781.1 |
| Cash received from disposals of intangible assets and property, plant and equipment |
70.7 | 10.6 |
| Cash received from construction cost and investment subsidies | 38.9 | 56.4 |
| Cash paid for the acquisition of fully and proportionately consolidated entities and entities accounted for using the equity method |
-3,002.7 | -50.1 |
| Cash received from the sale of fully and proportionately consolidated entities and entities accounted for using the equity method |
0.0 | 3.2 |
| Change in securities and investments | -737.9 | 189.9 |
| Interest received | 188.3 | 185.8 |
| Dividends received | 131.3 | 123.8 |
| Cash flow from investing activities | -4,117.3 | -261.5 |
| € millions1 | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
|---|---|---|
| 3. Financing activities | ||
| Interest paid for investing activities | -209.5 | -196.4 |
| Dividends paid | -539.9 | -417.4 |
| Proceeds from borrowings | 1,943.1 | 315.0 |
| Repayment of financial liabilities | -276.0 | -612.6 |
| Capital reduction for minority interests | 0.0 | -7.8 |
| Cash flow from financing activities | 917.7 | -919.2 |
| Net change in cash and cash equivalents | -1,649.4 | 302.8 |
| Net foreign exchange difference | 4.2 | 5.7 |
| Change in cash and cash equivalents | -1,645.2 | 308.5 |
| Cash and cash equivalents at the beginning of the period | 3,084.5 | 1,317.8 |
| Cash and cash equivalents at the end of the period | 1,439.3 | 1,626.3 |
| of which cash and cash equivalents recognised as current assets | (1,362.6) | (1,626.3) |
| of which cash and cash equivalents of assets held for sale | (76.7) | (0.0) |
1 The figures of the comparative period have been restated.
| € millions1 | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
|---|---|---|
| Interest paid for investing activities (capitalised borrowing costs) | -17.2 | -5.9 |
| Interest paid for financing activities | -209.5 | -196.4 |
| Total interest paid in the period | -226.7 | -202.3 |
| € millions1 | Group shares | Minority interests |
Total |
|---|---|---|---|
| As of 31 December 2007 | 5,051.4 | 950.3 | 6,001.7 |
| Changes in accounting policy | 0.7 | 0.0 | 0.7 |
| As of 31 December 2007 after changes in accounting policy | 5,052.1 | 950.3 | 6,002.4 |
| Total net income recognised in equity | -284.2 | -4.4 | -288.6 |
| Group net profit | 782.1 | 66.5 | 848.6 |
| Total comprehensive income | 497.9 | 62.1 | 560.0 |
| Dividends paid | -368.8 | -48.6 | -417.4 |
| Other changes | 0.0 | -82.5 | -82.5 |
| As of 30 September 2008 | 5,181.2 | 881.3 | 6,062.5 |
| As of 31 December 2008 | 4,779.9 | 803.4 | 5,583.3 |
| Changes in accounting policy | 8.2 | 0.0 | 8.2 |
| As of 31 December 2008 after changes in accounting policy | 4,788.1 | 803.4 | 5,591.5 |
| Total net income recognised in equity | 233.3 | 9.2 | 242.5 |
| Group net profit | 712.8 | 42.4 | 755.2 |
| Total comprehensive income | 946.1 | 51.6 | 997.7 |
| Dividends paid | -491.0 | -48.9 | -539.9 |
| Other changes | 0.0 | 19.4 | 19.4 |
| As of 30 September 2009 | 5,243.2 | 825.5 | 6,068.7 |
The interim financial statements of the EnBW group are prepared according to the International Financial Reporting Standards (IFRS) the adoption of which is mandatory in the EU at the balance sheet date. In addition, the related interpretations (IFRIC/SIC) are observed. Standards and interpretations that have not yet come into force have not been adopted.
The accounting policies applied for the interim consolidated financial statements as of 30 September 2009 are the same as those for the consolidated financial statements as of 31 December 2008 with the exception of the following new policies.
In compliance with IAS 34, the reporting scope selected for the presentation of the consolidated financial statements of EnBW AG as of 30 September 2009 was condensed compared to that of the consolidated financial statements as of 31 December 2008.
Besides the income statement, the financial statements include a condensed statement of comprehensive income, a balance sheet, a condensed cash flow statement and a condensed statement of changes in equity.
All significant transactions and events in the reporting period are explained in the interim group management report.
The International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC) have issued the following new standards and interpretations, the adoption of which is mandatory as of the fiscal year 2009:
› IAS 1 "Presentation of Financial Statements": This standard requires changes in equity arising from transactions with equity holders acting as owners and other changes in equity to be presented separately. Accordingly, the statement of changes in equity only includes details on transactions with equity holders, while all other changes in equity are presented in a single line. In addition, the standard introduces a statement of comprehensive income, which includes all line items of income and expenses recognised in the income statement as well as all components of other comprehensive income recognised directly in equity, either in one statement or in two linked statements. The revised IAS 1 is effective for the first time for fiscal years beginning on or after 1 January 2009. The changes had an effect on the presentation of EnBW's consolidated financial statements and will give rise to more extensive disclosures in the notes as of year-end.
› IAS 23 "Borrowing Costs": The amendment of IAS 23 eliminates the allowed alternative treatment of expensing any borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets in the period in which they are incurred. In future, such borrowing costs must be capitalised as part of the cost of the asset. EnBW has adopted the standard in fiscal year 2009 with retroactive effect as of 1 January 2007. The prior-year figures have been restated accordingly to take into account the retroactive application. The effects on the consolidated financial statements are as follows:
| Income statement in € millions | 1/1– 30/9/2008 |
1/1– 31/12/2008 |
|---|---|---|
| Finance costs | 5.9 | 10.6 |
| Earnings before tax (EBT) | 5.9 | 10.6 |
| Income taxes | -1.7 | -3.1 |
| Group net profit | 4.2 | 7.5 |
| of which profit shares attributable to equity holders of EnBW AG | (4.2) | (7.5) |
| Balance sheet in € millions | 31/12/2008 | 1/1/2008 |
|---|---|---|
| Property, plant and equipment | 11.6 | 1.0 |
| Revenue reserves | 8.2 | 0.7 |
| Deferred taxes | 3.4 | 0.3 |
| Cash flow statement in € millions | 1/1– 30/9/2008 |
1/1– 31/12/2008 |
|---|---|---|
| Capital expenditures on intangible assets and property, plant and equipment | -5.9 | -10.6 |
| Interest paid for financing activities | 5.9 | 10.6 |
› IAS 39 "Financial Instruments: Recognition and Measurement" and IFRS 7 "Financial Instruments: Disclosures":The IASB has issued editorial corrections to the amendments to IAS 39 and IFRS 7 originally issued on 13 October 2008. These editorial corrections clarify the effective date of the amendments issued on 13 October. The amendments to IAS 39 and IFRS 7 did not have any effect on EnBW's consolidated financial statements.
› IFRIC 13 "Customer Loyalty Programmes": This interpretation addresses the recognition and measurement of revenue from sales transactions and associated expenses for obligations arising from customer loyalty programmes such as credits, bonuses or other awards operated by the manufacturer or service provider, or by third parties. This interpretation is effective for fiscal years beginning on or after 31 December 2008. First-time adoption of IFRIC 13 did not have any effect on EnBW's consolidated financial statements.
The financial statements of the domestic and foreign subsidiaries and joint ventures included in consolidation were prepared in accordance with the accounting policies of EnBW.
Capital consolidation is performed according to the purchase method by offsetting the cost of acquisition against the proportionate revalued equity of the subsidiaries at the date of acquisition. Assets, liabilities and contingent liabilities are carried at fair value. Any remaining positive differences are recognised as goodwill. Negative differences are immediately recognised in profit or loss following a review of their calculation.
When consolidating minority interests acquired in entities that are already fully consolidated, the net assets are not revalued. Any positive difference between the consideration and the carrying amount of the additional share of the net assets acquired is recognised in goodwill. Any negative difference is recognised in profit or loss.
Receivables, liabilities and provisions between the consolidated entities are netted. Intercompany income is offset against the corresponding expenses. Intercompany profits are eliminated, unless they are immaterial. Deferred taxes are recorded.
Joint ventures are consolidated according to the same principles as subsidiaries.
The same accounting policies apply to entities accounted for using the equity method. Goodwill is included in the carrying amount of the investment. Negative differences are recognised in profit or loss via investment result.
Effective as of 31 March 2009 and 21 April 2009, respectively, EnBW acquired a 100% share in Plambeck Neue Energien Windpark Fonds LX GmbH & Co. KG, Cuxhaven, Plambeck Neue Energien Windpark Fonds CI GmbH & Co. KG, Cuxhaven and Plambeck Neue Energien Windpark Fonds CIV GmbH & Co. KG, Cuxhaven for a consideration of € 33.1 million. The entities' wind power plants were completed at the end of March and mid-April, respectively. The contribution by these entities to earnings after tax in the nine-monthly financial statements for January to September 2009 is immaterial. The following assets were acquired and the following liabilities were assumed as part of the acquisition.
| € millions | Carrying amount under IFRS |
Recognised on acquisition |
|---|---|---|
| Property, plant and equipment | 81.4 | 91.7 |
| Current assets | 13.2 | 13.2 |
| Total assets | 94.6 | 104.9 |
| Non-current liabilities | 49.2 | 52.2 |
| Current liabilities | 19.6 | 19.6 |
| Total liabilities | 68.8 | 71.8 |
| Net assets1 | 25.8 | 33.1 |
| Cost | 33.1 | |
| Goodwill | 0.0 |
1 The calculation of the fair value of the assets and liabilities has not been finalised yet.
As a result, provisional values were recognised pursuant to IFRS 3.62.
As of 29 May 2009, EnBW acquired a 100% share in Gesellschaft für die Beteiligung an dem Kraftwerk Lippendorf mbH, Hanover. The company holds a 50% shareholding in Unit S of Lippendorf coal power station. At the same time, EnBW acquired a 100% share in Gesellschaft für die Beteiligung an dem Kraftwerk Bexbach mbH, Hanover, which holds an 8.3% share in Bexbach coal power station. The preliminary purchase price totalled € 915.2 million. In the nine-monthly financial statements January to September 2009, the newly acquired share in the power stations contributed € 1.2 million to earnings after income taxes, excluding borrowing costs. If the new share in the power stations had already been consolidated since the beginning of the year, group revenue would have increased by € 75.0 million to € 11,778.1 million and earnings after income tax would have increased by € 5.8 million to € 761.0 million. The following assets were acquired and the following liabilities were assumed as part of the acquisition.
| € millions | Carrying amount under IFRS |
Recognised on acquisition |
|---|---|---|
| Intangible assets | 0.0 | 10.0 |
| Property, plant and equipment | 108.8 | 528.6 |
| Current assets | 17.7 | 156.0 |
| Total assets | 126.5 | 694.6 |
| Non-current liabilities | 2.1 | 4.6 |
| Current liabilities | 11.8 | 32.4 |
| Total liabilities | 13.9 | 37.0 |
| Net assets1 | 112.6 | 657.6 |
| Cost | 915.2 | |
| Goodwill | 257.6 |
1 The calculation of the fair value of the assets and liabilities has not been finalised yet.
As a result, provisional values were recognised pursuant to IFRS 3.62.
The Federal Anti-Trust Office approved the acquisition of a 26% shareholding in EWE AG on 6 July 2009 subject to conditions. The conditions stipulate that EnBW will have to divest its subsidiary GESO Beteiligungsund Beratungs- AG or EWE's investment in VNG – Verbundnetz Gas AG will have to be sold to a third party. The acquisition takes the form of a share purchase and a capital increase. The total transaction volume amounts to around € 2 billion. EWE AG is accounted for as an associate in the consolidated financial statements using the equity method. Headquartered in Oldenburg, EWE AG specialises in the areas of electricity and gas supply, gas transmission as well as telecommunications and information technology. For the purposes of segment reporting, EWE AG is allocated to the holding segment.
On 31 July 2009, EnBW acquired a 50% shareholding in Borusan EnBW Enerji yatırımları ve Üretim A.S, a joint venture with Borusan Holding A.S. The objective of the joint venture is to build up generation capacities over the next few years primarily in the field of renewable energies. The joint venture is based in Istanbul and is consolidated proportionately in the consolidated financial statements.
Effective as of 1 October 2009, EnBW acquired a further 16.7% shareholding in Bexbach coal power station. The purchase price amounted to € 83.6 million. The following assets and liabilities were assumed in the acquisition.
| € millions | Carrying amount under IFRS |
Recognised on acquisition |
|---|---|---|
| Property, plant and equipment | 6.3 | 68.0 |
| Current assets | 0.0 | 26.6 |
| Total assets | 6.3 | 94.6 |
| Non-current liabilities | 0.0 | 5.0 |
| Current liabilities | 0.0 | 6.0 |
| Total liabilities | 0.0 | 11.0 |
| Net assets1 | 6.3 | 83.6 |
| Cost | 83.6 | |
| Goodwill | 0.0 | |
The calculation of the fair value of the assets and liabilities has not been finalised yet. As a result, provisional values were recognised pursuant to IFRS 3.62.
ENBW SHARE MANAGEMENT REPORT FINANCIAL STATEMENTS SERVICE › Notes and explanations
Under the full consolidation method, all subsidiaries are included over whose financial and business policy control can be exercised as defined by the control concept. In this case, the assets and liabilities of a subsidiary are included in full in the consolidated financial statements.
Jointly controlled entities are included in the consolidated financial statements by way of proportionate consolidation. In the case of the proportionate consolidation, the assets and liabilities of the subsidiary are only considered in the consolidated financial statements in proportion to the shareholding of the parent company.
The equity method is used when a significant influence may be exercised on the business policy of the associate, but the entity does not qualify as a subsidiary or a joint venture. When measuring shares this means that only the pro rata equity of the entity is included in consolidated financial statements, and not its assets and liabilities.
| Consolidated companies | 30/9/2009 | 31/12/2008 | 30/9/2008 |
|---|---|---|---|
| Full consolidation | 98 | 90 | 87 |
| Proportionate consolidation (joint ventures) | 12 | 10 | 10 |
| Associates | 18 | 17 | 17 |
| € millions | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
|---|---|---|
| Share of profit of entities accounted for using the equity method | 167.5 | 123.4 |
| Write-downs of entities accounted for using the equity method | -7.1 | 0.0 |
| Write-ups of entities accounted for using the equity method | 6.7 | 0.0 |
| Net profit from entities accounted for using the equity method | 167.1 | 123.4 |
| Investment income | 47.6 | 45.8 |
| Income from the sale of investments | 0.0 | 28.2 |
| Other income from investments | 47.6 | 74.0 |
| Investment result | 214.7 | 197.4 |
| € millions1 | 1/1– | 1/1– |
|---|---|---|
| 30/9/2009 | 30/9/2008 | |
| Interest and similar income | 188.1 | 208.1 |
| Other finance revenue | 99.5 | 81.5 |
| Finance revenue | 287.6 | 289.6 |
| Borrowing costs | -241.7 | -161.5 |
| Other interest and similar expenses | -35.1 | -23.0 |
| Interest portion of increases in provisions | -382.1 | -359.2 |
| Personnel provisions | (-171.8) | (-161.2) |
| Provisions relating to nuclear power | (-200.0) | (-187.0) |
| Other non-current provisions | (-10.3) | (-11.0) |
| Other finance costs | -159.4 | -108.9 |
| Finance costs | -818.3 | -652.6 |
| Financial result | -530.7 | -363.0 |
Due to conditions imposed by the Federal Anti-Trust Office in connection with the acquisition of the shares in EWE AG, EnBW is planning to sell its interest in GESO Beteiligungs- und Beratungs-AG (GESO). In this light, the assets and liabilities of GESO and its subsidiaries are recorded as being held for sale. It was not necessary to perform any write-downs to lower fair values.
The assets and liabilities of the GESO disposal group break down as follows:
| € millions | 30/9/2009 |
|---|---|
| Non-current assets held for sale | 1,322.5 |
| Current assets held for sale | 238.7 |
| Assets held for sale | 1,561.2 |
| Non-current liabilities directly associated with the assets classified as held for sale | 324.2 |
| Current liabilities directly associated with the assets classified as held for sale | 447.3 |
| Liabilities directly associated with the assets classified as held for sale | 771.5 |
The remaining assets held for sale totalling € 3.9 million essentially relate to land and buildings.
| Funds from operations (FFO) in € millions1 | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
|---|---|---|
| Funds from operations before tax and financing | 1,763.8 | 1,928.6 |
| Income tax paid | -154.2 | -221.5 |
| Interest and dividends received | 319.6 | 309.6 |
| Interest paid for financing activities | -209.5 | -196.4 |
| Funds from operations after tax and financing | 1,719.7 | 1,820.3 |
1 The figures of the comparative period have been restated.
Compared to 31 December 2008, contingent liabilities and financial commitments have decreased by € 2,868.0 million to € 25,632.7 million. This decrease is primarily attributable to a lower level of long-term natural gas purchase obligations due to the fall in prices and the purchase of the 26% shareholding in EWE AG.
ENBW SHARE MANAGEMENT REPORT FINANCIAL STATEMENTS SERVICE › Notes and explanations
Related parties include Electricité de France (EDF) and Zweckverband Oberschwäbische Elektrizitätswerke (OEW). The financial statements of EnBW AG are included in the consolidated financial statements of EDF on a proportionate basis.
The business transacted with EDF during the first nine months had the following impact on the consolidated financial statements of EnBW:
| Income statement in € millions | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
|---|---|---|
| Revenue | 713.6 | 545.4 |
| Cost of materials | -764.9 | -646.5 |
| Balance sheet in € millions | 30/9/2009 | 31/12/2008 |
|---|---|---|
| Receivables | 97.4 | 120.7 |
| Payments on account | 48.8 | 44.6 |
| Liabilities | 155.9 | 43.3 |
| Payments on account received | 29.2 | 38.7 |
The revenue and cost of materials mainly result from electricity supply and electricity procurement agreements. All business relations with EDF are at arm's length.
The business relations with joint ventures conducted at market conditions were as follows:
| Income statement in € millions | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
|---|---|---|
| Revenue | 31.5 | 27.3 |
| Cost of materials | -15.3 | -6.8 |
| Balance sheet in € millions | 30/9/2009 | 31/12/2008 |
|---|---|---|
| Other loans | 5.6 | 6.1 |
| Receivables | 3.6 | 3.5 |
| Liabilities | 1.2 | 2.7 |
In the course of ordinary business activities, relationships also exist with associates, including among others municipal entities (public utilities, in particular) that are accounted for using the equity method. Goods and service transactions with these entities took place at arm's length and had the following impact on the balance sheet and income statement of the EnBW group:
| Income statement in € millions | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
|---|---|---|
| Revenue | 140.5 | 141.9 |
| Cost of materials | -64.4 | -43.1 |
| Balance sheet in € millions | 30/9/2009 | 31/12/2008 |
|---|---|---|
| Other loans | 2.4 | 0.0 |
| Receivables | 13.4 | 12.8 |
| Liabilities | 9.4 | 9.8 |
The EnBW group has not entered into any significant transactions with related persons.
On 23 April 2009, the annual general meeting of EnBW approved the proposal put forward by the Board of Management and Supervisory Board to pay a dividend of € 2.01 per share for the fiscal year 2008. This corresponds to a dividend payment of € 491.0 million.
As of 30 September 2009, EnBW AG holds 5,749,677 treasury shares that are valued at € 35.79 in the separate financial statements of EnBW AG. They account for 2.3% of the share capital.
Segment reporting
| 1/1–30/9/2008 in € millions |
Electricity upstream |
Electricity downstream |
Gas | Energy and environmental services |
Holding/ consolidation |
Total |
|---|---|---|---|---|---|---|
| External revenue | 1,847.9 | 7,468.8 | 1,852.4 | 534.0 | 0.0 | 11,703.1 |
| Internal revenue | 3,272.7 | 294.0 | 60.6 | 347.0 | -3,974.3 | 0.0 |
| Total revenue | 5,120.6 | 7,762.8 | 1,913.0 | 881.0 | -3,974.3 | 11,703.1 |
| Adjusted EBIT | 1,203.6 | 132.0 | 107.7 | 78.9 | -119.6 | 1,402.6 |
| EBIT | 1,156.9 | 167.1 | 108.0 | 76.3 | -89.0 | 1,419.3 |
| Amortisation and depreciation |
-253.2 | -178.1 | -63.2 | -106.4 | -0.5 | -601.4 |
| Impairment losses |
-2.9 | 0.0 | 0.0 | -7.6 | 0.0 | -10.5 |
| Capital employed as of 30/9/2009 |
5,288.9 | 5,069.8 | 1,728.2 | 1,370.3 | 2,118.7 | 15,575.9 |
| 1/1–30/9/2008 in € millions1 |
Electricity upstream |
Electricity downstream |
Gas | Energy and environmental services |
Holding/ consolidation |
Total |
|---|---|---|---|---|---|---|
| External revenue | 1,796.2 | 7,617.2 | 1,740.9 | 506.3 | 0.0 | 11,660.6 |
| Internal revenue | 3,529.2 | 318.8 | 105.5 | 466.9 | -4,420.4 | 0.0 |
| Total revenue | 5,325.4 | 7,936.0 | 1,846.4 | 973.2 | -4,420.4 | 11,660.6 |
| Adjusted EBIT | 1,122.8 | 161.5 | 110.7 | 64.1 | -91.7 | 1,367.4 |
| EBIT | 1,121.7 | 168.4 | 50.4 | 62.6 | -81.7 | 1,321.4 |
| Amortisation and depreciation |
-233.1 | -177.5 | -74.1 | -96.5 | -1.2 | -582.4 |
| Impairment losses |
-0.7 | -0.1 | -61.0 | 0.0 | 0.0 | -61.8 |
| Capital employed as of 31/12/2008 |
4,185.8 | 4,891.6 | 1,815.1 | 1,272.0 | 260.5 | 12,425.0 |
One of the key performance indicators within the EnBW group is adjusted EBIT. Total adjusted EBIT of the reportable segments can be reconciled to the earnings before tax (EBT) as follows:
| € millions | 1/1– 30/9/2009 |
1/1– 30/9/2008 |
|---|---|---|
| Adjusted EBIT1 | 1,522.2 | 1,459.1 |
| Non-operating EBIT1 | -13.9 | -56.0 |
| Holding/consolidation | -89.0 | -81.7 |
| Earnings before interest and taxes (EBIT) | 1,419.3 | 1,321.4 |
| Investment result | 214.7 | 197.4 |
| Financial result | -530.7 | -363.0 |
| Earnings before tax (EBT) | 1,103.3 | 1,155.8 |
1 Comprises the reportable segments of electricity upstream, electricity downstream, gas and energy and environmental services.
The segment reporting comprises the reportable segments of electricity upstream, electricity downstream, gas and energy and environmental services. The electricity upstream segment comprises the generation and trading/procurement stages of the value added chain. The electricity downstream segment comprises the value added stages transmission, distribution and sales. The gas segment comprises the midstream area including import agreements and infrastructure, storage, trading/portfolio management as well as the downstream area including transmission, distribution and sales. The energy and environmental services segment includes the areas of thermal disposal, non-thermal disposal, water and other services.
Assets, liabilities, revenue and expenses allocable to EnBW AG, our shareholding in EWE AG and other activities not allocable to the segments presented separately are disclosed in the holding/consolidation column together with eliminations. The direct costs of EnBW AG are allocated between the individual segments using allocation keys.
› Board of Management and Supervisory Board
Castrop-Rauxel/Karlsruhe Chief Executive Officer since 1 October 2007 Appointed until 30 September 2012
Dr. Bernhard Beck LL.M., Leonberg Chief Personnel Officer since 1 October 2002 Appointed until 30 September 2012
Christian Buchel, Karlsruhe Chief Operating Officer since 1 February 2009 Appointed until 31 January 2012
Dr. Rudolf Schulten, Mühlhausen Chief Financial Officer since 1 January 2009 Appointed until 31 December 2013
Dr. Hans-Josef Zimmer, Steinfeld (Rhineland-Palatinate) Chief Technical Officer since 1 October 2007 Appointed until 30 September 2010 Dr. Claus Dieter Hoffmann, Stuttgart Managing partner of H + H Senior Advisors GmbH Chairman
Supervisory Board
Dietrich Herd, Philippsburg Chairman of the central works council of EnBW Kraftwerke AG Deputy chairman
Marc Boudier, Sèvres Directeur Europe at Electricité de France SA
Dr. Daniel Camus, Croissy-sur-Seine Directeur Général Délégué Finances at Electricité de France SA
Dirk Gaerte, Sigmaringendorf District administrator of the Sigmaringen district
Josef Götz, Stuttgart Chairman of the central works council of EnBW Regional AG
Reiner Koch, Glienicke/Nordbahn Responsible for supply and waste at ver.di head office
Marianne Kugler-Wendt, Heilbronn Regional director at ver.di, Heilbronn – Neckar-Franconia district
Wolfgang Lang, Karlsruhe Chairman of the central works council of EnBW Systeme Infrastruktur Support GmbH
Gérard Roth, Bois d'Arcy Directeur Allemagne at Electricité de France SA Klaus Schörnich, Düsseldorf Chairman of the works council of Stadtwerke Düsseldorf AG
Heinz Seiffert, Ehingen District administrator of the Alb-Donau district
Gerhard Stratthaus MdL, Brühl Former finance minister of the state of Baden-Württemberg
Laurent Stricker, Paris Advisor to the president at Electricité de France SA
Werner Vorderwülbecke, Stuttgart Regional department head at ver.di, Baden-Württemberg
Christoph Walther, Langebrück Deputy chairman of the works council of ENSO Energie Sachsen Ost AG
Dietmar Weber, Esslingen Chairman of the central works council of EnBW Vertriebs- und Servicegesellschaft mbH
Kurt Widmaier, Ravensburg District administrator of the Ravensburg district
Dr.-Ing. Gérard Wolf, Paris Directeur Général Adjoint Filiales et Développement à l'International at Electricité de France SA
Dr. Bernd-Michael Zinow, Pfinztal Senior vice president public affairs at EnBW Energie Baden-Württemberg AG
As of 30 September 2009
EnBW Energie Baden-Württemberg AG Durlacher Allee 93 76131 Karlsruhe www.enbw.com
Coordination and editor Corporate Communication, Karlsruhe
Design and lithography 3st kommunikation GmbH, Mainz
Typesetting In-house using FIRE.sys
Printed by Sommer Corporate Media GmbH & Co. KG, Waiblingen
Publication of the Nine-Monthly Financial Report January to September 2009: 13 November 2009
Title/cover RDK 8 Dominik Obertreis, Althütte
Photos "Top issues"
July: Uli Deck, Karlsruhe Aug.: EnBW Energie Baden-Württemberg AG Sept.: Borusan Holding Oct.: Uwe Düttmann, Hamburg
Photo CEO Uwe Düttmann, Hamburg
Phone: 0800 1020030 or 0800 AKTIEENBW (only in Germany) Fax: 0800 3629111 (only in Germany) E-mail: [email protected] Internet: www.enbw.com
Publication of the Nine-Monthly Financial Report January to September 2009
Press briefing | Preliminary annual results for the fiscal year 2009
Publication of the Annual Report 2009
Annual general meeting of EnBW Energie Baden-Württemberg AG
Publication of the Quarterly Financial Report January to March 2010
Publication of the Six-Monthly Financial Report January to June 2010
Publication of the Nine-Monthly Financial Report January to September 2010
EnBW Energie Baden-Württemberg AG Durlacher Allee 93
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