MVV Energie : Interim Report H1 2023 FY

Interim Report H1

Financial Year 2023

Interim Report H1 FY 2023 | MVV

MVV in Figures

		1 Oct 2022		1 Oct 2021	%
		to 31 Mar 2023		to 31 Mar 2022		change
Financial key figures
Sales and earnings
Adjusted sales excluding energy taxes (Euro million)		4,059		2,662		+ 52
Adjusted EBITDA 1 (Euro million)		627		366		+ 71
Adjusted EBITDA excluding disposal gains 1 (Euro million)		549		311		+ 77
Adjusted EBIT 1 (Euro million)		526		262		>+ 100
Adjusted EBIT excluding disposal gains 1 (Euro million)		449		207		>+ 100
Adjusted net income for period 1 (Euro million)		353		172		>+ 100
Adjusted net income for period after minority interests 1 (Euro million)	302	114	>+ 100
Capital structure
Adjusted total assets at 31 March 2023/30 September 2022 2 (Euro million)		5,953		6,888		- 14
Adjusted total assets excluding margins at 31 March 2023/30 September 2022 2, 3 (Euro million)		5,583		5,434		+ 3
Adjusted equity at 31 March 2023/30 September 2022 2 (Euro million)		2,101		1,863		+ 13
Adjusted equity ratio at 31 March 2023/30 September 2022 2 (%)		35.3		27.1		+ 30
Adjusted equity ratio excluding margins at 31 March 2023/30 September 2022 2, 3 (%)		37.6		34.3		+ 10
Net financial debt at 31 March 2023/30 September 2022 (Euro million)		1,111		32		>+ 100
Net financial debt excluding margins at 31 March 2023/30 September 2022 3 (Euro million)	1,366	1,449		- 6
Cash flow and investments
Cash flow from operating activities (Euro million)		- 971		- 153		>+ 100
Cash flow from operating activities excluding margins 3 (Euro million)		191		- 95		-
Investments (Euro million)	160	156	+ 3
Share
Adjusted earnings per share 1 (Euro)	4.59	1.73	>+ 100
Non-financial key figures
Electricity generation capacity from renewable energies at 31 March 2023/30 September 2022 4 (MWe)		625		614		+ 2
Electricity generation volumes from renewable energies 5 (kWh million)		752		722		+ 4
Completed development of new renewable energies plants (MWe)		497		134		>+ 100
Operations management for renewable energies plants (MWe)		3,740		3,636		+ 3
Number of employees at 31 March 2023/31 March 2022 (headcount)		6,202		6,442		- 4
Number of trainees at 31 March 2023/31 March 2022 (headcount)		268		281		- 5

1. Excluding non-operating measurement items for financial derivatives and including interest income from finance leases
2. Excluding non-operating measurement items for financial derivatives
3. Excluding collateral deposited for counterparty default risks (margins)
4. Including electricity generation capacity from wind turbines for repowering at 31 March 2023 (30 MW)/30 September 2022 (30 MW)
5. Including electricity generation volumes from wind turbines for repowering at 31 March 2023 (20 million kWh)/31 March 2022 (10 million kWh)

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Interim Report H1 FY 2023 | MVV

Contents
Highlights	4
Foreword	5
Interim Group Management Report	8
Group Business Performance	8
Business Framework	8
Earnings, Asset and Financial Position	10
Employees	14
Forecast, Opportunity and Risk Situation	15
Forecast for the 2023 Financial Year	15
Opportunity and Risk Situation	16
Interim Consolidated Financial Statements	17
Income Statement	17
Statement of Comprehensive Income	18
Balance Sheet	19
Statement of Changes in Equity	21
Cash Flow Statement	22
Notes to Interim Consolidated Financial Statements	24
Notes to Income Statement	26
Notes to Balance Sheet	28
Responsibility Statement	36
Further Information	37
Financial Calendar	37
Imprint/Contact	37

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Interim Report H1 FY 2023 | MVV

Highlights

International project development business gains momentum

Expanding renewable energies - in our own generation and developing them for customers - has been a firm component of our strategy for many years now. And now our Juwi subsidiary is building what is the largest photovoltaics project in its history: a 223-megawatt solar park with 414,000 solar modules in the US State of Colorado. Operations are scheduled to be launched at the end of 2023. Furthermore, Juwi sold the rights to the 84-megawatt Wolf Windfarm in South Africa. Developed by Juwi, this windfarm should start operating in the first quarter of 2024. At the end of March, Juwi Shizen Energy, a joint venture between Juwi and Shizen Energy founded in 2013, successfully handed over the Azuma Kofuji project to the operator. This 100-megawatt solar park is the largest project so far implemented by the Japanese joint venture.

Further advances with decarbonising our district heat

We are converting our district heat supply in Mannheim and the region to 100 % green energy sources by 2030 at the latest. A further milestone on this course is the construction of our innovative river heat pump on the Rhine. Having spent one year in production at the Swedish plant of Siemens Energy, the individual pump components reached their deployment location in recent weeks. The plant will launch operations for the 2023 heat period.

With its 8 Point Programme, our Kiel subsidiary will fully convert its electricity and district heat to climate-neutral generation by 2035.

Attractive dividend

After a two-year break due to the pandemic, our Annual General Meeting was held in person once again in Mannheim on 10 March 2023. We intend to retain this format in future as well. As in the previous year, our shareholders voted in favour of a dividend of Euro 1.05 per share for the 2022 financial year. This corresponds to a dividend yield of 3.6 percent based on the closing price of our share at the end of the 2022 financial year. Given 65.9 million shares in all, the distribution total amounts to Euro 69.2 million.

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Interim Report H1 FY 2023 | MVV

Foreword

Dear Ladies and Gentlemen,

Germany is endeavouring to structure the heat transition and has thus finally recognised the key role this has to play in reducing CO2 emissions. With the Amendment to the German Building Energy Act (GEG), the Federal Government intends to implement the requirement that, starting in 2024 and with few exceptions, all new heat systems must be at least 65 % powered by renewable energies. We are already several steps ahead at MVV, as we have been working at full steam on these topics for years now. With the electricity transition and our green customer solutions, the heat transition is a core component of the Mannheim Model which sets out our course towards a #climatepositive future from 2040 at the latest. Alongside heat pumps in

particular, district heat is one lever enabling buildings to be supplied with climate-friendly heating in future in line with legal requirements. By 2030 at the latest, we will convert district heat in Mannheim and the region and in Offenbach to 100 % green energy sources. Kiel is set to follow by 2035 at the latest.

Concerns as to a shortage of gas in the past autumn and winter showed how indispensable the heat transition is not only from a climate protection perspective, but also for reasons of supply reliability. With our gas bonus initiative, we additionally supported people in Mannheim and the region in their efforts to save energy. That was a success: Between October 2022 and March 2023, participants in our campaign cut their gas consumption, when adjusted for weather-related factors, by nearly a third compared with the previous year. Their gas savings were nearly twice as high as the average for our grid region. This campaign saved more than 11.5 million kilowatt hours of gas and thus more than 2,300 tonnes of CO2.

Heading at pace for #climatepositive

If we are to speed up decarbonisation in the building sector, and thus in Germany as a whole, we will need all green generation options. That is why we will launch operations in Mannheim this year with our first river heat pump and a sewage sludge treatment plant. In 2024, we will connect our biomass power plant on Friesenheimer Insel to the district heat grid. These measures will be supplemented by further green options, such as deep geothermal energy, additional river heat pumps, biomethane plants, electrode boilers and further industrial waste heat. We are also pressing continually ahead with the electricity transition - in our own generation and for our customers as well. After all, electricity consumption is set to rise in the coming years due to new

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