Financial and non-financial key performance indicators and targets

We safeguard the implementation of our strategy by means of a holistic goal and performance management system. Our goal system comprises the five dimensions of finance, strategy, customers and society, employees and environment. The key performance indicators enable us to measure the degree to which goals are achieved and to manage our company.

The key performance indicators for the 2020 financial year were unchanged in comparison with the previous year with one exception: The People Engagement Index (PEI) has replaced the Employee Commitment Index (ECI).

Goal dimension Finance

Securing our profitability. Our primary goal is to secure our financial profitability. Our operating result – measured on the basis of adjusted EBITDA – should reach 2.3 to 2.5 billion euro in 2020. We will thus return to the level achieved before the Energiewende.
Managing the financial profile. By limiting net investment to the level of the adjusted retained cash flow, we are committed to maintaining financial discipline irrespective of interest rate-related volatility. The goal is a solid investment grade rating. The key performance indicator internal financing capability will be replaced by the new key performance indicator debt repayment potential from 2021 on. This is because it will not be possible to finance the growth phase that starts in 2021 exclusively with our own funds. Therefore, we will manage the financial profile of EnBW from 2021 using the debt repayment potential (retained cash flow in relation to net debt).
Increasing the value of the company. Our declared long-term goal is to increase the value of the company and generate value for our stakeholders. This is the case when the return on capital employed (ROCE) is higher than the required cost of this capital.

Goal	Key performance indicator	2020	Target for 2020	Target for 2025
Goal Secure profitability	Key performance indicator Adjusted EBITDA	2020 €2.8 billion	Target for 2020 €2.3 - €2.5 billion	Target for 2025 €3.2 billion
Goal Managing the financial profile	Key performance indicator Internal financing capability Debt repayment potential	2020 102.8% -	Target for 2020 ≥ 100% -	Target for 2025 -⁰Following the transition to the growth strategy, the internal financing capability will be replaced by the new key performance indicator debt repayment potential from 2021 onwards. To achieve the unchanged goal of maintaining a solid investment-grade rating, EnBW regularly checks the 2025 target value for the debt repayment potential for managing its financial profile. This was stated in the Integrated Annual Report 2019 as > 14%. The adjusted target of > 12% will allow the company to take advantage of op-portunities for growth while simultaneously maintaining its solid investment-grade rating. The rating target will still be guaranteed by the new target value. ≥ 12%⁰Following the transition to the growth strategy, the internal financing capability will be replaced by the new key performance indicator debt repayment potential from 2021 onwards. To achieve the unchanged goal of maintaining a solid investment-grade rating, EnBW regularly checks the 2025 target value for the debt repayment potential for managing its financial profile. This was stated in the Integrated Annual Report 2019 as > 14%. The adjusted target of > 12% will allow the company to take advantage of op-portunities for growth while simultaneously maintaining its solid investment-grade rating. The rating target will still be guaranteed by the new target value.
Goal Increasing Group value	Key performance indicator ROCE	2020 6.3%	Target for 2020 8.5% - 11%	Target for 2025 6.5% - 8%

Goal dimension Strategy

The operating result for the Sales segment doubles from €0.2 billion (reference year: 2012) to €0.4 billion in 2020 and represents around 15% of the Group operating result. Innovations make this possible.
The operating result for the Grids segment increases by 25% from €0.8 billion (reference year: 2012) to €1.0 billion in 2020 and represents around 40% of the Group operating result. The share accounted for by stable regulated business is expanding.
The operating result for the Renewable Energies segment increases by 250% from €0.2 billion (reference year: 2012) to €0.7 billion in 2020 and represents around 30% of the Group operating result. EnBW becomes more sustainable.
The operating result for the Generation and Trading segment falls by 80% from €1.2 billion (reference year: 2012) to €0.3 billion in 2020 due to changed framework conditions and only represents around 15% of the Group operating result.

Goal	Key performance indicator	2020	Target for 2020	Target for 2025
Goal Share of result from “Customer proximity” / Sales	Key performance indicator Share of overall adjusted EBITDA	2020 €0.3 billion / 12.0%	Target for 2020 €0.4 billion / 15.0%	Target for 2025 €0.6 billion / 20.0% (Smart infrastructure for customers⁰The four segments of Sales, Grids, Renewable Energies and Generation and Trading will become the three strategic business fields of “Smart infrastructure for customers,” “System critical infrastructure” and “Sustainable generation infrastructure” from 2021.)
Goal Share of result from Grids	Key performance indicator Share of overall adjusted EBITDA	2020 €1.3 billion / 48.8%	Target for 2020 €1.0 billion / 40.0%	Target for 2025 €1.3 billion / 40.0% (System critical infrastructure⁰The four segments of Sales, Grids, Renewable Energies and Generation and Trading will become the three strategic business fields of “Smart infrastructure for customers,” “System critical infrastructure” and “Sustainable generation infrastructure” from 2021.)
Goal Share of result from Renewable Energies	Key performance indicator Share of overall adjusted EBITDA	2020 €0.8 billion / 30.0%	Target for 2020 €0.7 billion / 30.0%	Target for 2025 €1.3 billion / 40.0% (Sustainable generation infrastructure⁰The four segments of Sales, Grids, Renewable Energies and Generation and Trading will become the three strategic business fields of “Smart infrastructure for customers,” “System critical infrastructure” and “Sustainable generation infrastructure” from 2021.)
Goal Share of result from Generation and Trading	Key performance indicator Share of overall adjusted EBITDA	2020 €0.4 billion / 15.9%	Target for 2020 €0.3 billion / 15.0%

Goal dimension Customers and society

Improving our reputation. In view of the radical changes to the energy landscape, successful corporate growth as an energy company requires social acceptance. The Reputation Index reflects the diverse range of activities, influencing factors and assessments of a variety of stakeholder groups.
Customer proximity. This key performance indicator is used to assess the satisfaction of our private end customers with whom we have a direct customer relationship. The information is compiled using comprehensive customer surveys about the brands EnBW and Yello conducted by an external service provider. The expected values in 2020 will reflect a high level of customer loyalty.
Supply reliability. Providing a reliable and safe supply of energy to our customers has the highest priority. SAIDI (System Average Interruption Duration Index) serves as the key performance indicator for supply reliability. It specifies the average length of supply interruption in the electricity distribution grid experienced annually by each connected customer. SAIDI includes all unscheduled interruptions to supply that last more than three minutes for the end consumer.

Goal	Key performance indicator	2020	Target for 2020	Target for 2025
Goal Reputation	Key performance indicator Reputation Index	2020 56	Target for 2020 55	Target for 2025 58 bis 62
Goal Customer proximity	Key performance indicator Customer Satisfaction Index EnBW Customer Satisfaction Index Yello	2020 132 / 159	Target for 2020 > 136 > 159	Target for 2025 125 bis 136 148 bis 159
Goal Supply reliability	Key performance indicator SAIDI (electricity) in min. / year	2020 15 min. / year	Target for 2020 < 25 min. / year	Target for 2025 < 20 min. / year

Goal dimension Environment

Expand renewable energies (RE).The share of the generation capacity accounted for by renewable energies has doubled compared with 2012. Onshore and offshore wind power and hydropower are at the forefront of this development.
Climate protection. EnBW actively contributes to climate protection by successively reducing the CO₂ intensity of its own generation of electricity (excluding nuclear power) by 15 to 20% by 2020 compared to 606 g/kWh in the reference year 2015.

Goal	Key performance indicator	2020	Target for 2020	Target for 2025
Goal Expand Renewable Energies (RE)	Key performance indicator Installed output of RE Share of the generation capacity accounted for by RE	2020 4.9 GW 39.0%	Target for 2020 5.0 GW > 40%	Target for 2025 6.5 to 7.5 GW > 50%⁰The 2025 target values for installed output of RE and share of generation capacity accounted for by RE and CO₂ intensity were examined and adjusted based on the target of climate neutrality. The target figures for the expansion of RE were adjusted due to slowed approval processes and grid connection and feed-in forecasts. The reference year for CO₂ intensity was adjusted to 2018 because the 2020 reporting year cannot be considered representative for the coming years (due to, among other things, market effects and the coronavirus pandemic).
Goal Climate protection	Key performance indicator CO₂ intensity in g/kWh⁰Includes redispatch deployment.^,⁰Nuclear generation is not included in the calculation for the key performance indicator CO₂ intensity. The CO₂ intensity including nuclear generation for the reporting year was 268 g/kWh (previous year: 235 g/kWh).	2020 372 g/kWh	Target for 2020 -15% to -20% (reference year 2015: 606 g/kWh)	Target for 2025 -15% to -30%⁰The 2025 target values for installed output of RE and share of generation capacity accounted for by RE and CO₂ intensity were examined and adjusted based on the target of climate neutrality. The target figures for the expansion of RE were adjusted due to slowed approval processes and grid connection and feed-in forecasts. The reference year for CO₂ intensity was adjusted to 2018 because the 2020 reporting year cannot be considered representative for the coming years (due to, among other things, market effects and the coronavirus pandemic). (reference year 2018)

Goal dimension Employees

Since November 2020, we have been using a redesigned employee survey (EnMAB) to measure the People Engagement Index (PEI) as a new key performance indicator. The PEI allows us to draw conclusions not only on the satisfaction of employ-ees, but also on how motivated and engaged they are in their work at EnBW. Before the 2020 financial year, we used the Employee Commitment Index (ECI) to measure the degree to which employees identified with the company.

Engagement of employees.The PEI expresses how engaged employees are in their work at EnBW and was measured and reported as a key perfor-mance indicator for the first time in 2020. It is compiled at all companies with more than 100 employees (except for the Independent Transmission Operators [ITOs]) as part of an employee survey carried out by an exter-nal, independent service provider. It is determined based on the first question of the standardized list of questions “How happy are you working for the EnBW Group and the compa-nies in the Group?” It is a question that uses a rating scale from 1 (I do not agree at all) to 5 (I agree completely). The value determined is then converted to a scale of 0 to 100.
Occupational safety. The LTIF indicates how many accidents at work led to at least one day of absence, based on one million hours worked. The calculation of the LTIF overall generally includes all companies with more than 100 employees. For the calculation of the LTIF for companies controlled by the Group, those companies engaged in the area of waste management are excluded because the number of accidents deviates significantly from that in the core business in the energy industry. External agency workers and contractors are not taken into account in either performance indicator. The number of accidents at work and the resulting days of absence should remain stable or fall.

Goal	Key performance indicator	2020	Target for 2020	Target for 2025
Goal Engagement of employees	Key performance indicator People Engagement Index (PEI)⁰The performance indicator was reported for the first time in 2020 and replaces the Employee Commitment Index (ECI) as a key performance indicator. There is no target value available for 2020. Variations in the group of consolidated companies (all companies with more than 100 employees are generally considered [except ITOs]).	2020 83	Target for 2020 65	Target for 2025 77-83⁰Due to the extraordinary effects relating to the coronavirus pandemic in the year this key performance indicator was introduced, we may need to adjust this target value during the strategy period.
Goal Occupational safety	Key performance indicator LTIF for companies controlled by the Group⁰Variations in the group of consolidated companies (all companies with more than 100 employees, excluding external agency workers and contractors, are generally considered).^,⁰Excluding companies in the area of waste management. LTIF overall⁰Variations in the group of consolidated companies (all companies with more than 100 employees, excluding external agency workers and contractors, are generally considered).	2020 2.1 3.6	Target for 2020 ≤ previous year -	Target for 2025 2.1 3.5

Achievement of the 2020 strategy targets

We have achieved or exceeded the financial and non-financial targets defined in the EnBW 2020 strategy almost in full and in many cases ahead of plan. We view this as an outstanding success because the majority of the strategy targets were already defined in 2013 – eight years ago – and we have worked to achieve them in a resolute and disciplined manner, with huge commitment from all involved.

Key performance indicators

The adjusted EBITDA for the 2020 financial year stood at €2.8 billion and thus exceeded the target value of between €2.3 billion and €2.5 billion. The Grids and Renewable Energies segments were important earnings generators in the strategy period.

The adjusted EBITDA

The adjusted retained cash flow reached the forecasted range of €1.9 billion to €2.0 billion in 2020 so that the target value for internal financing capability of ≥100% was slightly exceeded. We were also able to achieve our target of an internal financing capability of around 100% for the period 2017 to 2020 with 99.2%.

Internal financing capability

ROCE reached 6.3% in 2020 and did not reach the target range of 8.5% to 11%. The main reason for this was the fall in capital market returns as a result of the low-interest phase.

ROCE (return on capital employed)

The regulated grid business and renewable energies accounted together for 78% of the operating earnings in 2020. The target here was at least 70%. We have realized the planned transformation of the business portfolio and thus significantly improved the risk-return profile of EnBW.

Share of the adjusted EBITDA accounted for by the segments

Non-financial key performance indicators

We slightly exceeded our target with a value of 56 index points, which was mainly due to the fact that our stakeholders appreciate our reliable business performance and our commitment to sustainability and climate protection.

Reputation Index

The Customer Satisfaction Index for the EnBW brand stood at 132 points in 2020 and thus narrowly missed the strategic target defined in 2013 of >136. The Customer Satisfaction Index for the Yello brand of 159 points in 2020 virtually achieved the target value of >159. While customer satisfaction with the Yello brand is significantly influenced by brand image, price and service quality, the Customer Satisfaction Index for the EnBW brand is also impacted by social aspects. This is because it is a Group brand that has its own electricity generation capacities, which makes it more strongly recognizable to the public. This includes, for example, how the energy-industry activities of EnBW are perceived and the position it takes on current energy policy issues, the effects of which are difficult to predict in the long term.

Customer Satisfaction Index

Due to our ongoing investment and maintenance programs, SAIDI remained at a good, stable level of 15 min./year. We were thus able to achieve our target value of <25 min./year.

SAIDI

The installed output of RE reached 4.9 GW in 2020 and we thus almost achieved our target of 5.0 GW. The share of the generation capacity accounted for by RE stood at 39%, which was only slightly below the target value of >40%. That means we have largely realized our strategic plans for the expansion of electricity generation from renewable energies.

Installed output of renewable energies (RE) and the share of the generation capacity accounted for by RE

The CO₂ intensity of own generation of electricity in 2020 was 372 g/kWh. The target was to reduce the value from 2015 of 606 g/kWh by between 15% and 20%. We were able to clearly exceed this target with a reduction of 39%. The reasons for the over-attainment of this target were – despite the increased utilization of our power plants for redispatch by the transmission system operators in 2020 – the decommissioning of fossil fuel power plant capacities, which were mainly transferred to the grid reserve due to their system relevance, market-driven developments and the effect of the coronavirus pandemic.

CO2 intensity

The key performance indicator People Engagement Index (PEI) was only introduced in 2020 and there was thus no strategic target value defined for 2020. The Employee Commitment Index (ECI) was not compiled in 2020 but we had already exceeded the 2020 target value for this indicator in 2019.

PEI

In comparison to the previous year, the LTIF for companies controlled by the Group remained at a good, stable level and we were thus able to achieve our target. There was no target value defined for LTIF overall for the 2020 financial year as we only reported on this performance indicator for the first time in 2019.

LTIF

Corporate strategy

All information about our Strategy 2025

Further performance indicators

Further key performance indicators can be found here.

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