MVV Energie : Financial Report 2022 FY

Annual Report 2022

Annual Report 2022 | MVV

MVV in Figures

		FY 2022		FY 2021		% change
Financial key figures
Sales and earnings
Adjusted sales excluding energy taxes (Euro million)		4,199		4,131		+ 2
Adjusted EBITDA 1 (Euro million)		564		482		+ 17
Adjusted EBITDA excluding disposal gains		509		479		+ 6
Adjusted EBIT 1 (Euro million)		353		278		+ 27
Adjusted EBIT excluding disposal gains		298		275		+ 8
Adjusted annual net income 1 (Euro million)		249		177		+ 41
Adjusted annual net income after minority interests 1 (Euro million)	176	150	+ 17
Capital structure
Adjusted total assets at 30 September 2 (Euro million)		6,888		5,815		+ 18
Adjusted total assets excluding margins at 30 September 2, 3 (Euro million)		5,434		4,994		+ 9
Adjusted equity at 30 September 2 (Euro million)		1,863		1,662		+ 12
Adjusted equity ratio at 30 September 2 (%)		27.1		28.6		- 5
Adjusted equity ratio excluding margins at 30 September 2, 3 (%)		34.3		33.3		+ 3
Net financial debt at 30 September (Euro million)		32		628		- 95
Net financial debt excluding margins at 30 September 3 (Euro million)	1,449	1,450	0
Cash flow and investments
Cash flow from operating activities (Euro million)		952		1,203		- 21
Cash flow from operating activities excluding margins 3 (Euro million)		357		360		- 1
Investments (Euro million)	335	306	+ 9
Value performance
ROCE (%)		16.2		10.2		+ 59
ROCE excluding disposal gains (%)		13.7		10.1		+ 36
ROCE excluding margins 3 (%)		10.7		8.9		+ 20
ROCE excluding disposal gains and excluding margins (%)		9.0		8.8		+ 2
WACC (%)		6.6		5.9		+ 12
Value spread (%)		9.6		4.3		>+ 100
Value spread excluding disposal gains (%)		7.1		4.2		+ 69
Value spread excluding margins 3 (%)		4.1		3.0		+ 37
Value spread excluding disposal gains and excluding margins (%)		2.4		2.9		- 17
Capital employed (Euro million)		2,178		2,715		- 20
Capital employed excluding margins 3 (Euro million)	3,298	3,115	+ 6
Share
Dividend per share 4 (Euro)		1.05		1.05		0
Adjusted earnings per share 1 (Euro)		2.67		2.28		+ 17

1. Excluding non-operating measurement items for financial derivatives, excluding structural adjustment for part-time early retirement and including interest income from finance leases
2. Excluding non-operating measurement items for financial derivatives
3. Excluding collateral deposited at MVV for counterparty default risks (margins)
4. Subject to approval by Annual General Meeting on 10 March 2023

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Annual Report 2022 | MVV

		FY 2022		FY 2021		% change
Non-financial key figures
Direct CO2 emissions (Scope 1) 1, 2 (tonnes 000s)		3,647		3,510		+ 4
Indirect CO2 emissions (Scope 2) 1, 2 (tonnes 000s)		147		115		+ 28
Indirect CO2 emissions (Scope 3) 1, 2 (tonnes 000s)		5,072		5,310		- 4
Electricity generation capacity from renewable energies 1, 3 (MWe)		614		564		+ 9
Renewable energies as share of proprietary electricity generation 1 (%)		32		32		0
Electricity generation volumes from renewable energies 1, 4 (kWh million)		1,295		1,217		+ 6
Green heat generation capacity 1 (MWt)		861		793		+ 9
Green heat as share of proprietary heat generation 1, 5 (%)		39		36		+ 8
Green heat generation volumes 1, 2, 5 (kWh million)		2,662		2,561		+ 4
Completed development of new renewable energies plants (MWe)		476		610		- 22
Operations management for renewable energies plants (MWe)		3,779		3,811		- 1
Number of employees at 30 September (headcount)		6,556		6,470		+ 1
of which women		1,864		1,825		+ 2
of which men		4,692		4,645		+ 1
of which full-time employees		5,529		5,513		-
of which part-time employees		1,027		957		+ 7
Number of trainees at 30 September (headcount)		335		340		- 1
Share of female managers at 30 September (%)	16	14	+ 14
Accident frequency rate (LTIF) 6
(number of accidents per 1,000,000 hours of work)		3.7		4.1		- 10

1. Fully consolidated and at-equity companies
2. Previous year's figure adjusted
3. Including electricity generation capacity from wind turbines for repowering at 30 September 2022 (30 MW)/30 September 2021 (20 MW)
4. Including electricity generation volumes from wind turbines for repowering at 30 September 2022 (21 million kWh)/ 30 September 2021 (14 million kWh)
5. Heat from biomass, biogas and energy from waste plants, including RDF plants
6. Figures for 2021 and 2020 calendar years

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Annual Report 2022 | MVV

Contents

To Our Shareholders.........................................................	5
Letter from the CEO ............................................................	5
Executive Board ..................................................................	8
Supervisory Board Report .................................................	10
Share.................................................................................	16
Combined Management Report .....................................	19
Group Fundamentals.........................................................	19
Group Structure ............................................................	19
Business Model ............................................................	20
Corporate Strategy .......................................................	21
Value-Based Corporate Management ..........................	24
Technology and Innovation...........................................	25
Group Business Performance ...........................................	29
Major Developments and Overall Summary .................	29
Business Framework ....................................................	32
Presentation of Earnings Performance .........................	40
Presentation of Asset Position ......................................	45
Presentation of Financial Position.................................	48
Combined Non-Financial Declaration ...........................	50
Business Performance of MVV Energie AG ......................	96
Corporate Governance Declaration.................................	101
Takeover-Related Disclosures ........................................	110
Outlook, Opportunity and Risk Report .............................	111
Outlook .......................................................................	111
Opportunity and Risk Report.......................................	113

Consolidated Financial Statements ............................	127
Income Statement...........................................................	127
Statement of Comprehensive Income.............................	128
Balance Sheet ................................................................	129
Statement of Changes in Equity .....................................	130
Cash Flow Statement .....................................................	131
Notes to MVV's
2022 Consolidated Financial Statements .......................	133
Notes to Income Statement........................................	144
Notes to Balance Sheet .............................................	149
Responsibility Statement ................................................	208
Directors and Officers .....................................................	209
Independent Auditor's Report .........................................	216
Remuneration Report ....................................................	224
Other Disclosures..........................................................	235
Auditor's Report on
Combined Non-Financial Declaration .............................	235
Five-Year Overview ........................................................	238
EU Taxonomy Tables .....................................................	240
Financial Calendar..........................................................	255
Imprint/Contact ...............................................................	255

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Annual Report 2022 | MVV

Letter from the CEO | TO OUR SHAREHOLDERS

To Our Shareholders

Letter from the CEO

Dr. Georg Müller

CEO of

MVV Energie AG

DEAR LADIES AND GENTLEMEN,

When the new Federal Government took up office about a year ago, the energy policy agenda was clear: Inject fresh momentum into the energy transition, speed up the expansion of renewable energies, bring green heat out of the shadows, step up efforts to reduce CO2. All measures were to be aligned to the 1.5-degree trajectory formulated in international climate agreements. The first projects were soon initiated and so-called "Easter" and "Summer" packages were prepared.

Have any of these aspects become any less important due to Russia's attack on Ukraine, the geopolitical consequences thereby triggered and the upheaval seen on energy markets? Certainly not! They still show the way ahead for wise energy policy, now maybe more than ever. But it is also right that these targets should be joined by the need to uphold supply relia- bility, (re-)stabilise markets and reduce the burden on consumers and industry.

We have to make a distinction between measures that still make sense in the long term and those that are additionally required in the short term. These two aspects have often been confused in the debates and variety of opinions expressed in recent months. This created the impression that Germany had moved away from its path towards a modern, forward- looking energy supply and was incapable of reacting appropriately to the disruptions seen in recent months. Both conclusions are wrong. In view of our international obligations, the basic direction of German energy strategy cannot be up for debate. The immediate measures taken by the Federal Government to secure commodity imports and gas procurement interdependencies on the one hand and support various customer groups in coping with price rises on the other may justify questions in individual cases. Given the available timescale and resources, however, this approach has the right focuses.

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