European Utilities Key Player Profiles: ENBW

Table of Contents

• CATALYST
• SUMMARY
• METHODOLOGY
• ANALYSIS
  • European Utilities Key Player Profile: Enbw
  • Key Player Scorecard examines 31 leading utilities drawn from across Europe' s competitive arenas
    • Key Players dominate power generation capacity market share in the Wmed competitive arena
    • Key Players dominate power generation output market share in the Wmed and CEE competitive arenas
    • Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share
    • Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share
  • The Key Player Scorecard assesses utilities across four pillars: Performance, Scale, Growth and Exposure
    • The Performance pillar combines 5 financial metrics to measure business performance
    • The Scale pillar combines financial and operational metrics to measure the size of a utility
    • The Growth pillar measures the rate of growth of a utility' s financial and energy resources
    • The Exposure pillar combines both operational and financial measurements of risk
  • Enbw scores 22.6/100 on Datamonitor' s European Utility Scorecard and ranks 29 out of the 31 Key Players covered
    • Enbw trails the Key Player average on each Scorecard pillar
    • Enbw achieves an overall ranking of 29, with a utility score of 22.6
    • Enbw comes close to the Key Payer average on the Growth pillar, yet lags at the bottom of the Exposure pillar
    • Enbw sits below the Key Player average on Performance, yet the company has a higher than average level of risk
    • Enbw has a Growth score consistent with many top ten utilities, yet lags on Scale
  • Enbw scores below average on each Performance metric, resulting in ranking of 27 on this pillar
    • Enbw' s overall financial Performance score of 7.6 lags the Key Player average of 10.9
    • Enbw has an average operating profit margin, yet underperforms on return on sales and fixed assets
    • Enbw underperforms the Key Player average in both return on investment and return on energy volume
  • Enbw ranks in the top half of utilities on energy metrics, yet in the bottom half on financial metrics, for an overall Scale ranking of 17
    • In terms of Scale Enbw ranks 17
    • In generation capacity, Enbw ranks 12, with 14 GW
    • Enbw is a well integrated utility with nearly equal gas and power supply volume (89 TWh and 72 TWh respectively)
    • Enbw has a less than one percent share of Key Player power customers
    • At 72 TWh, Enbw ranks 9 in terms of power supply volume
    • Enbw has a less than one percent share of Key Player gas customers
    • In gas supply volume Enbw has a 0.8% EU25 market share
    • Enbw ranks 15 and 20 in terms of revenue and net income respectively
  • With low growth in operating cash flow and power volume, Enbw ranks 18 in Growth
    • Enbw' s operating cash flows and power supply volumes have declined, resulting in a Growth ranking of 18
    • Enbw has a below average operating profit margin, yet an above average price earnings ratio
    • From 2001 to 2005, Enbw' s annual profit growth (17.1%) outpaced its revenue growth of 6.5%
    • Enbw' s operating cash flow and power supply volume have declined by 14% and 28.8%, respectively
  • Enbw has the highest debt leverage of all Key Players, contributing to a bottom Exposure ranking of 31
    • Enbw has a positive power NTR, but remains fully exposed in its gas NTR
    • Enbw' s power supply volume of 71 TWh is surpassed by generation output of 73 TWh, resulting in a long power NTR
    • Enbw is long by 2.6% on power, but has a 100% short gas NTR position
    • Enbw is highly leveraged, with a debt to equity ratio of 645.7%
    • Enbw ranks 31 of the 31 Key Players in terms of debt leverage
    • Enbw has experienced a decline in both operating cash flow and energy volume growth
  • Enbw operates principally in the NWE competitive arena, with Germany is its largest single market
    • Enbw has a diverse generation capacity mix of nuclear, thermal and hydro power
    • Enbw' s generation capacity is located exclusively in the NWE competitive arena
    • Enbw has a less than one percent market share of Key Player power customers
    • Enbw has less than a one percent share of Key Player gas customers
• APPENDIX
  • Databook
  • Definitions
  • List of Tables
    • Table 1: The Key Players are drawn from across a diverse range of markets
    • Table 2: The Performance pillar combines 5 financial metrics to measure business performance
    • Table 3: The Scale pillar combines financial and operational metrics to measure the size of a utility
    • Table 4: The Growth pillar measures the rate of growth of a utility' s financial and energy resources
    • Table 5: The Exposure pillar combines both operational and financial measurements of risk
    • Table 6: Enbw scores 22.6/100 on Datamonitor' s European Utility Scorecard and ranks 29 out of the 31 Key Players covered
    • Table 7: Enbw scores 7.6/25 on the Performance pillar, and ranks 27 out of 31 on this measurement
    • Table 8: Enbw scores 2.3/25 on the Scale pillar, and ranks 17 out of 31 on this measurement
    • Table 9: Enbw scores 8.6/25 on the Growth pillar, and ranks 18 out of 31 on this measurement
    • Table 10: Enbw scores 4/25 on the Exposure pillar, and ranks 31 out of 31 on this measurement
    • Table 11: Enbw scores below average on each Performance metric, resulting in ranking of 27 on this pillar
    • Table 12: Enbw ranks in the top half of utilities on energy metrics, yet in the bottom half on financial metrics, for an overall Scale ranking of 17
    • Table 13: With low growth in operating cash flow and power volume, Enbw ranks 18 in Growth
    • Table 14: Enbw has the highest debt leverage of all Key Players, contributing to a bottom Exposure ranking of 31
    • Table 15: Return on fixed assets
    • Table 16: Return on sales
    • Table 17: Operating profit margin
    • Table 18: Return on energy volume
    • Table 19: Return on investment
    • Table 20: Generation Capacity / EU25 market total
    • Table 21: Power Supply Volume / EU25 market total
    • Table 22: Gas Supply Volume / EU25 market total
    • Table 23: Net income / Net income of 94 leading utilities
    • Table 24: Revenue / Revenue of 94 leading utilities
    • Table 25: Revenue growth, 2001-2005 CAGR
    • Table 26: Profit growth, 2001-2005 CAGR
    • Table 27: Growth in operating cash flow, 2004 to 2005
    • Table 28: Gas supply volume growth, 2004-2005
    • Table 29: Growth in power supply volume, 2004 to 2005
    • Table 30: Power NTR / Power supply volume
    • Table 31: Gas NTR / Gas supply volume
    • Table 32: Debt leverage
    • Table 33: Growth in operational cash flow - Growth in energy volume
  • List of Figures
    • Figure 1: Datamonitor' s Key Player Scorecard examines 31 leading utilities drawn from across Europe' s competitive arenas
    • Figure 2: Key Players dominate power generation capacity market share in the Wmed competitive arena
    • Figure 3: Key Players dominate power generation output market share in the Wmed and CEE competitive arenas
    • Figure 4: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate power supply volume market share
    • Figure 5: Despite ongoing industry consolidation, in no competitive arenas do Key Players dominate gas volume market share
    • Figure 6: Enbw achieves an overall ranking of 29, with a utility score of 22.6
    • Figure 7: Enbw comes close to the Key Payer average on the Growth pillar, yet lags at the bottom of the Exposure pillar
    • Figure 8: Enbw sits below the Key Player average on Performance, yet the company has a higher than average level of risk
    • Figure 9: Enbw has a Growth score consistent with many top ten utilities, yet lags on Scale
    • Figure 10: Enbw' s overall financial Performance score of 7.6 lags the Key Player average of 10.9
    • Figure 11: Enbw has an average operating profit margin, yet underperforms on return on sales and fixed assets
    • Figure 12: Enbw underperforms the Key Player average in both return on investment and return on energy volume
    • Figure 13: In terms of Scale Enbw ranks 17
    • Figure 14: In generation capacity, Enbw ranks 12, with 14 GW
    • Figure 15: Enbw is a well integrated utility with nearly equal gas and power supply volume (89 TWh and 72 TWh respectively)
    • Figure 16: Enbw has a less than one percent share of Key Player power customers
    • Figure 17: At 72 TWh, Enbw ranks 9 in terms of power supply volume
    • Figure 18: Enbw has a less than one percent share of Key Player gas customers
    • Figure 19: In gas supply volume Enbw has a 0.8% EU25 market share
    • Figure 20: Enbw ranks 15 and 20 in terms of revenue and net income respectively
    • Figure 21: Enbw' s operating cash flows and power supply volumes have declined, resulting in a Growth ranking of 18
    • Figure 22: Enbw has a below average operating profit margin, yet an above average price earnings ratio
    • Figure 23: From 2001 to 2005, Enbw' s annual profit growth (17.1%) outpaced its revenue growth of 6.5%
    • Figure 24: Enbw' s operating cash flow and power supply volume have declined by 14% and 28.8%, respectively
    • Figure 25: Enbw has a positive power NTR, but remains fully exposed in its gas NTR
    • Figure 26: Enbw' s power supply volume of 71 TWh is surpassed by generation output of 73 TWh, resulting in a long power NTR
    • Figure 27: Enbw is long by 2.6% on power, but has a 100% short gas NTR position
    • Figure 28: Enbw is highly leveraged, with a debt to equity ratio of 645.7%
    • Figure 29: Enbw ranks 31 of the 31 Key Players in terms of debt leverage
    • Figure 30: Enbw has experienced a decline in both operating cash flow and energy volume growth
    • Figure 31: Enbw has a diverse generation capacity mix of nuclear, thermal and hydro power
    • Figure 32: Enbw' s generation capacity is located exclusively in the NWE competitive arena
    • Figure 33: Enbw has a less than one percent market share of Key Player power customers
    • Figure 34: Enbw has less than a one percent share of Key Player gas customers