EnBW Energie Baden Württemberg : Investor and Analyst conference call 2021

Investor and analyst conference call

FY 2021»

Thomas Kusterer	Chief Financial Officer
Marcel Münch	Head of Finance, M&A and Investor Relations

23 March 2022

Investor and analyst conference call FY 2021

Resilient business model in times of market volatility and geopolitical change Strategy EnBW 2025 - shaping the infrastructure world of tomorrow

Our exposure to Russia

	Natural gas
EnBW
No direct import contracts
VNG
2 direct import contracts	2021: 99 of 495 TWh
1 ending Dec. 2022	2022: ~100 TWh
	2023 - 2030: ~65 TWh p.a.

Coal

EnBW

86% imported from Russia (~3.6 m t) in 2021

Additional coal supplies from Colombia and South Africa

Diversification	Diversification
Option to use LNG, VNG's extensive gas storage inventory,	Screening of potential new coal suppliers already started at year-end
source internationally	2021 e.g. the US, Australia and Indonesia

Integrated set up along entire value chain - resilient business model

Smart infrastructure	System-critical	Sustainable generation
for customers	infrastructure	infrastructure

Strategy EnBW 2025 and beyond focuses on infrastructure and is supported by national and European goals

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EnBW manages risk proactively and successfully

Planning cash flow and hedging generation margins forward

Generation hedge (Own generation 2021: 42 TWh)

• Margins locked in by selling generation forward into the market
• Significant margin calls comfortably served at all times
• 2022 entirely hedged: No material impact on earnings expected

Investor and analyst conference call FY 2021

Hedge levels1

2022: 100%

2023: 60 - 90%

2024: 30 - 50%

Diversified debt instruments

Bilateral bank lines, syndicated credit facility, commercial papers programme, bonds, bank loans, promissory notes, etc.

Forward-looking liquidity management

• Liquidity risk covered in advance with operational liquidity sources
• Limitation of counterparty risks
• Careful evaluation of different scenarios including stress tests
• Forecast of potential short- and long-term margin movements

Proactive further strengthening of the liquidity position

Active management		Adding bilateral		Drawing EnBW's		Use of commercial
of hedging position		bank lines		syndicated loan		paper

1 As of 31 December 2021

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Investor and analyst conference call FY 2021

Positive earnings development at upper end of forecast range

Adjusted EBITDA		Share of adjusted EBITDA by segments1
in € m
	2,959	Smart Infrastructure for Customers
2,781	System Critical Infrastructure
	Renewable Energies
	Sustainable Generation Infrastructure
		Thermal Generation and Trading
			63%
			EU taxonomy
			compliant
	+6.4%
2020	2021

1 Divergence from 100% due to others/consolidation

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Investor and analyst conference call FY 2021

Smart Infrastructure for Customers

Positive development in underlying business overcompensated by rising procurement costs for basic service

Adjusted EBITDA

in € m

335	323	Electricity and gas sales
		Improved earnings in commodity business
		Unpredictable increase in number of customers in basic service led
		to substantial additional procurement cost
-4%		Bad debt allowances
2020	2021

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