EnBW Energie Baden Württemberg : Six-Monthly Financial Report Q2 2021

Six-Monthly Financial Report

January to June 2021

Performance indicators of the EnBW Group

Financial and strategic performance indicators

in € million		01/01-		01/01-	Change	01/01-
	30/06/2021	30/06/2020	in %	31/12/2020
External revenue 1	12,654.7	9,802.5		29.1	19,694.3
Adjusted EBITDA	1,479.4	1,586.6		-6.8	2,781.2
Share of adjusted EBITDA accounted for by Smart Infrastructure for Customers	208.0/14.1	137.3/8.7	51.5/-	335.0/12.0
in € million/in % 1
Share of adjusted EBITDA accounted for by System Critical Infrastructure
in € million/in %	661.5/44.7	744.9/46.9	-11.2/-	1,346.6/48.4
Share of adjusted EBITDA accounted for by Sustainable Generation Infrastructure	726.8/49.1	819.3/51.6	-11.3/-	1,277.8/45.9
in € million/in % 1
Share of adjusted EBITDA accounted for by Other/Consolidation in € million/in %	-116.9/-7.9	-114.9/-7.2	-1.7/-	-178.2/-6.3
EBITDA	1,167.2	1,359.1		-14.1		2,663.3
Adjusted EBIT	731.7	943.8		-22.5		1,391.5
EBIT	-523.9	627.2		-	1,102.7
Adjusted Group net profit 2	594.3	370.2		60.5	682.8
Group net profit/loss 2	-162.8	184.2		-	596.1
Earnings per share from Group net profit/loss (€) 2	-0.60	0.68		-	2.20
Retained cash flow	835.7	1,090.8		-23.4	1,638.5
Net cash investment	860.6	590.3		45.8	1,826.9
in € million	30/06/2021	31/12/2020	Change
						in %
Net debt	11,847.7	14,406.5		-17.8

Non-financial performance indicators 3

		01/01-	01/01-	Change	01/01-
	30/06/2021		30/06/2020	in %	31/12/2020
Customers and society goal dimension
EnBW/Yello Customer Satisfaction Index	127/161		120/159	5.8/1.3	132/159
SAIDI (electricity) in min./year	8		7		14.3		15
Employees goal dimension
LTIF for companies controlled by the Group 4/LTIF overall 5	1.7/2.5		1.9/3.1	-10.5/-19.4	2.1/3.6

Employees 6, 7

	30/06/2021		30/06/2020	Change	31/12/2020
						in %
Employees	24,894		23,685		5.1		24,655
Full-time equivalents 8	23,369		22,184		5.3	23,078

• The figures for the previous year have been restated.

• In relation to the profit/loss attributable to the shareholders of EnBW AG.

• The values for the key performance indicators Reputation Index, People Engagement Index (PEI), "Installed output of renewable energies (RE) in GW and the share of the

generation capacity accounted for by RE in %" and CO2 intensity will be exclusively collected at the end of the year.

4 Variations in the group of consolidated companies (all companies with more than 100 employees are generally considered except for companies in the area of waste management as well as external agency workers and contractors).

• Variations in the group of consolidated companies (all companies with more than 100 employees are generally considered except for external agency workers and

contractors [except ITOs]).

• Number of employees excluding apprentices/trainees and inactive employees.

• The number of employees for the ITOs (ONTRAS Gastransport GmbH, terranets bw GmbH and TransnetBW GmbH) is only updated at the end of the year; for intervals of less than a year, the number of employees from 31  /  12  /  2020 is carried forward.

• Converted into full-time equivalents.

›Adjusted EBITDA of €1,479.4 million slightly below level in previous year

›High level of investment in expansion of renewable energies and electromobility

›Extraordinary negative effects totaling €1.25 billion, especially due to impairment losses on the power plants

›Earnings forecast for whole of 2021 remains unchanged

Contents

Solar parks without state funding
at EnBW: Sunny times for
photovoltaics ......................................	2
Interim Group management report
Business activity and strategy ...........	4
In dialog with our stakeholders .........	6
Research, development and
innovation ...........................................	8
Procurement ......................................	9
General conditions .............................	11
The EnBW Group ................................	16
Forecast .............................................	30
Opportunities and risks .....................	31

Six-monthly consolidated financial
statements
Income statement ..............................	33
Statement of comprehensive
income ...............................................	34
Balance sheet ....................................	35
Cash flow statement ..........................	36
Statement of changes in equity .........	37
Notes and explanations .....................	38
Certification following
auditor's review ..................................	48
Declaration of the
legal representatives .........................	49
Service
Important notes .................................	50
Financial calendar .............................	51

2 Solar parks without state funding at EnBW: Sunny times for photovoltaicsEnBW Six-Monthly Financial Report January to June 2021

Solar	parks	without	state
	atEnBW:
funding
	forphotovoltaics
Sunny	times

Solar energy has become the next kind of renewable energy that can be economically viable even without EEG funding. This is mostly thanks to reduced costs and improvements in efficiency. EnBW is currently realizing a solar cluster in Brandenburg consisting of three major projects that don't need government subsidies. In other words, solar parks that are commercially viable.

Did you know that every day 15,000 times more energy reaches the Earth from the sun than people consume around the world? Around one fifth of the electricity generated from renewable energies in Germany comes from PV power plants. And solar energy actually accounted for 9.3% of the total electricity generated in Germany in 2020 with 50.6 billion kilowatt hours (kWh) - about as much electricity as a major city such as Berlin with its around 3.7 million inhabitants consumes in almost four years.

Solar park Weesow-Willmersdorf

Berlin

Solar park	Solar park
Gottesgabe	Alttrebbin

The total installed photovoltaic capacity in Germany at the end of 2020 was around 53,000 mega­ watts (MW) - accounting for 24% of all power plant capacity available in Germany. The total capacity

is distributed across around two million power plants, of which three quarters are roof-mounted systems and one quarter are open-field power plants. Photovoltaic power offers huge benefits for the climate: This climate-friendly solar electricity saved almost 30 million t CO₂ in Germany in 2020, which would otherwise have been released into the atmosphere through the use of fossil fuels.

Alongside onshore and offshore wind power, photovoltaics forms a third pillar of EnBW's expansion strategy on its path towards a climate-neutral future. EnBW had a total of 153 MW of PV capacity connected to the grid at the end of 2019 and this figure had risen to 342 MW by the end of 2020. And the rate of expansion is increas- ing: EnBW aims to have 1,200 MW of PV capacity connected by 2025.

Around 1,000 MW is already part of a concrete project pipeline today. A solar cluster consisting of three major projects is currently being developed in Brandenburg. One of them, the Weesow-Willmersdorf solar park with a total capacity of 187 MW, is already in operation. It is the largest solar park in Germany to date with 465,000 solar modules.

The installation work at the other two major projects in Brandenburg "Gottesgabe" and "Alttrebbin" - each with a planned capacity of around 150 MW - has also recently begun. The solar cluster will be able to supply environmentally friendly electricity to around 140,000 households on aggregate in the future - which corresponds to about 70% of the households in the districts of Barnim and

EnBW Six-Monthly Financial Report January to June 2021

Solar parks without state funding at EnBW: Sunny times for photovoltaics 3

Märkisch-Oderland in Brandenburg. These three major photovoltaic projects will save around 325,000 t CO₂ per year. Significant improvements in efficiency and cost reductions in the production of solar modules of up to 90% over the last few years mean that some solar parks like EnBW's three major projects in Brandenburg can now also be realized without state funding. Solar power generated in solar parks that don't need state funding does not burden consumers through EEG cost allocations.

The more powerful the solar modules become and the lower the procurement costs per watt of output, the lower the cost of each kilowatt hour of electricity generated. "At our first solar park project in Leibertingen back in 2009, we were installing modules with an output of 90 W/m2. Today, the modules already have an output of more than 200 W/m2," explains Thorsten Jörß, Head of Photovoltaic Project Development at EnBW. And advances are still being made: Some manufacturers are already carrying out research into modules with an output of around 300 W/m2. Since 2017, EnBW has been participating in a research project at the University of Stuttgart for the inexpensive production of non-toxic silicon solar cells with a high level of efficiency.

"We can help to substantially push forward the Energiewende by expanding solar energy," says Jörß. However, it would require annual growth in solar energy of at least 10,000 MW across Germany to achieve the German government's aim of generating 65 percent of its total power from renewable energies by 2030. At the same time, it is not always possible to do without EEG cost allocations as solar projects that don't need state funding can only be developed as larger solar parks in good locations that have low grid connection costs. "To achieve our climate targets, it is politically expedient and also important to continue to provide EEG funding," explains Jörß.

One forward-looking solution that seeks to find a compromise between economic viability and the need for funding is already being pursued by EnBW in its "combi-project": EnBW is currently constructing a PV project with a capacity of 28 MW in Maßbach in Bavaria, 10 MW of which requires funding while the rest is economically viable without EEG subsidies - a good solution for pushing forward the expansion of solar energy.

There is still a potentially huge amount of suitable land available for open-field photovoltaic power plants in Germany. A study carried out on behalf of the Federal Ministry of Transport and Digital Infrastructure estimates that there is around 3,200 km2 of land available that is free of restrictions for the expansion of open-field PV. Based on the current state of technology, these sites have the potential to supply at least 230,000 MW of energy.

Solar electricity modules: more efficient and less expensive

The power output from PV modules was still around 90 W/m2 in 2009. It is now more than 200 W/m2. At the same time, costs have also fallen by approximately 90% over the last ten years.

2009

2021

90 W

90 %

200 W

output per m2

Drop in price for solar modules

output per m2