Innogy's Green Bonds innogy SE October 2017
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innogy‘s Green Bonds innogy SE · October 2017
Agenda
1. innogy at a glance and its sustainability strategy
2. Green bond framework
3. Eligible renewable projects
1
innogy at a glance
Stable business profile with diversified European footprint
Leading positions across countries in Europe innogy at a glance
3.7 GW • innogy’s IPO on 7 October 2016
renewable capacity1
• 40,000 employees across 16 European
574,000 km countries
grid length2
• EBITDA of €4.2 bn (2016) with c. 60%
regulated earnings mainly from grid business
5x #1
positions3
• Retail business with c. 23 million customers
across 11 European countries
Market presence
Renewables • Renewables business with c. 60% quasi-
Grid & Infrastructure
Retail regulated earnings share
Strategic partnership
Source: Group data as well as company estimates based on competitor publications, regulatory reports and analyst reports. 1 Capacity in the Renewables division as of 31 December 2016. Includes 0.4 GW of
renewable generation capacity in the Grid & Infrastructure and Retail divisions. 2 Positions in the Grid & Infrastructure division are based on distributed volumes in 2015. 3 Market positions based on volumes sold; for
Belgium, Poland and the Czech Republic, based on customer numbers and for the Netherlands, based on market research – all based on the latest information available as of 31 December 2016.
innogy SE · Investor presentation · October 2017 2
innogy‘s sustainability strategy
innogy contributes to SDG
Diversity and equal opportunity are Waste is treated along the principles of
promoted within the company. avoidance, recovery and disposal.
Share of women in the company: 34%. innogy’s products are CE certified and
Empowerment: the women’s network. clearly and transparently labelled.
Addressing climate change and promoting
Intelligent grid integration and energy
climate protection through renewable
efficiency. Smart grid, smart meters,
energy generation including on- and
smart home solutions, combined heat
offshore wind energy, solar energy, hydro
and power, energy efficiency (e.g. LED).
energy etc.
Programmes to support vulnerable Around innogy’s hydropower plants, fish
Revenues of c. € 44 billion (2016).
low-income customers in the UK ladders are installed. innogy is also
More than 40,000 employees across
(Health Through Warmth, npowers implementing measures to protect marine
Europe.
Macmillan Fund). flora/fauna at offshore wind farms.
Innovation hub with five core areas (e.g. Detailed measures minimising
Occupational safety and healthcare
disruptive digital). EV charging stations interventions or replacements are
management system ensured.
and related sustainable infrastructure developed to preserve the terrestrial
Health rate: 95.7%.
(hardware and software). ecosystems and biodiversity.
Enhancement of system integration in
Trainings for the employees’ professional cities e.g. through the smart city project.
development. More sustainability in cities is supported
through individual energy consultations.
3
Especially relevant for innogy’s Green Bonds
innogy‘s aspirations
We move forward with our sustainability targets
More sustainable More generation from renewables Further improvement
cars Current generation from renewables: c.10 TWh in of customer loyalty in
Starting from 1 January 2016 (c. 93% of total generation); indicative capex our retail business
2018, innogy‘s entire for 2017 -2019: €1.5 -1.7bn
company car fleet will
changeover to electric
and hybrid vehicles. Less interruption
The SAIDI target for Germany has been set at 15 Reduce CO2
minutes for 2017 (in 2016: 15.1 min ). emissions
Specific company
targets regarding the
Higher share of women in senior Less accidents CO2 emission
reduction and
management positions We have defined the
target of reducing the LTIF neutralization are
By mid-2022 the share of women among senior
to 1.8 by 2018. currently on our
management levels should be increased, e.g.
strategy agenda.
innogy SE board/ top management level: 25%
SAIDI = System Average Interruption Duration Index; The number of minutes per year and customer in which grid outages occur.
LTIF = Lost Time Incident Frequency (sum of all accidents resulting in at least one day of absence per million hours worked) 4
innogy‘s sustainability strategy
innogy’s current ESG/CSR Ratings
Sustainalytics1: 71/100
MSCI ESG Rating2: A – 73/100
oekom Corporate Rating1 - Prime - Rating: B-
CSR Silver Rating1: 47/100 - Silver
Recognition Level
1 published 2017 5
2 published 2016
Agenda 1. innogy at a glance and its sustainability strategy 2. Green bond framework 3. Eligible renewable projects
Green Bond Framework
innogy’s Green Bond Framework follows the Green
Bond Principles1
1. Use of Proceeds
An amount equivalent to the proceeds of the Green Bond issuance is exclusively used to finance or refinance2 Eligible
(Green) Projects of the following three categories:
Renewable energy projects:
o On- and offshore wind energy innogy’s inaugural Green Bond
o Solar energy
o Other sources of renewable energy (e.g. hydro)
Energy efficiency projects:
o Energy storage, Combined Heat and Power (CHP)
o Smart grid, smart meters, grid upgrade3
o Smart home solutions, Energy efficient lightning such as LED
o Energy efficiency advisory
Clean Transportation projects:
o Investments in, or expenditures for projects that contribute to a reduction of emissions in the transportation sector,
e.g. charging infrastructure for electric vehicles.
1 The Green Bond Principles issued by the International Capital Market Association (ICMA) are based on four pillars: Use of Proceeds, Process for Project Evaluation and Selection,
Management of Proceeds and Reporting. See https://www.icmagroup.org/Regulatory-Policy-and-Market-Practice/green-social-and-sustainability-bonds/green-bond-principles-gbp/
2 Disbursements not earlier than 2014. 7
3 Especially in context of ‘Energiewende’.Green Bond Framework
innogy’s Green Bond Framework
2. Process for project evaluation and selection
• Business units propose projects to be considered for Green Bond and provide information on the
compliance with the criteria for Eligible Projects.
• The Green Bond Committee1 (GBC) verifies the compliance of the proposed projects with the Use
of Proceeds requirements. It finally selects Eligible Projects.
3. Management of proceeds
• innogy has internal systems in place to track the outstanding proceeds of its Green Bonds and has
established a register to monitor and account for the Eligible Projects.
• In case of divestment/cancellation of an allocated Eligible Project, or if an allocated project no longer
meets the eligibility criteria, innogy commits to reallocate the proceeds to other Eligible Projects.
• Until Eligible Projects become available, innogy invests the unallocated proceeds in e.g. money
market products and/or marketable securities.
1 The GBC consists of representatives from Corporate Responsibility, Treasury, and on case by case basis members of business units involved. 8Green Bond Framework
innogy’s Green Bond Framework
4. Reporting
• Prior to issuance of each bond, innogy will disclose for which Eligible Projects proceeds are
expected to be used. innogy will provide information about expected climate and environmental
impact in an investor presentation alongside with the issuance.
• On an annual basis and until maturity of the Green Bond, innogy discloses the following
information about the Eligible Projects:
o The total amount of proceeds allocated
o The amount of unallocated proceeds (if any)
o Climate and/or environmental benefits
• Green Bond relevant information (e.g. allocation to Eligible Projects) will be available on the
following website: https://iam.innogy.com/en/about-innogy/investor-relations/bonds/green-bonds
9Green Bond Framework
innogy’s Green Bond Framework
External review
• innogy has commissioned Sustainalytics to obtain a second opinion1 of its Green Bond Framework:
“….Sustainalytics is confident that innogy is well positioned to issue green bonds, and
that the innogy Green Bond Framework is robust and transparent and in alignment with
the four pillars of the Green Bond Principles 2017.”
• An external auditor (e.g. PWC) will be mandated to pursue a limited assurance report of the
allocation of the Green Bond proceeds to Eligible Projects on an annual basis2.
1 Sustainalytics Second opinion is available on innogy’s website : https://iam.innogy.com/en/about-innogy/investor-relations/bonds/green-bonds
2 Starting at the end of the calendar year after issuance and until maturity of the Green Bond. 10Green Bond Framework
innogy’s Green Bond process at a glance
Review SOP
innogy’s Executive Board
Reviewed authorizes mission, members, rules of procedures
by Sustainalytics Business units
suggest projects
Green Bond Framework
Green Bond Committee (GBC)
Corporate Responsibility, Treasury, Business unit(s)
Limited
assurance
Green Bond Eligible Projects
on GBC will approve
allocation
Eligible Projects financed Eligible Projects and
of proceeds
by auditors
allocate these to Green
Bond proceeds
Periodic reporting to investors 11Agenda 1. innogy at a glance and its sustainability strategy 2. Green bond framework 3. Eligible renewable projects
Eligible projects
Overview of eligible wind on- und offshore projects
Nordsee Ost
Gwynt y Môr
Galloper
Nordsee One
Zuidwester
13Eligible projects
Nordsee Ost offshore wind farm at a glance
Nordsee Ost
Country Germany
Technology Offshore Wind
60 km distance to mainland shore /
Location
35 km north of Heligoland
Full capacity 295 MW
Water depth 22 – 26 metres
No. of turbines 48 x 6.15MW Senvion turbines
Foundation type Jacket
innogy SE share 100 %
Impressive dimensions
COD1 2015 (in operation) The 6 MW class wind turbines of Nordsee Ost wind are
impressive: the nacelle has the size of an one-family
innogy investment2 304 EURm
house, the rotors swipe across an area the size of two
innogy generation3 1.045 GWh football pitches and with a height of 160 metres a wind
Avoided GHG turbine of this type stands even taller than the Cologne
738 kt CO2e Cathedral.
emissions
1 commercial operation date
14
2 innogy investment spent 2014-2015
3 expected average annual generation of the project (innogy share)Eligible projects
Gwynt y Môr offshore wind farm at a glance
Gwynt y Môr
Country United Kingdom
Technology Offshore Wind
Location 13 km distance to mainland shore
Full capacity 576 MW
Water depth 12 – 28 metres
No. of turbines 160 x 3.6MW Siemens turbines
Foundation type Monopiles
innogy SE share 50 %
Precision work at high seas
COD1 2015 (in operation) The 160 turbines of Gwynt y Môr wind farm are around
innogy investment2 388 EURm 150 metres high. The foundations weigh up to 700 tonnes.
The components were placed by special installation
innogy generation3 980 GWh
vessels.
Avoided GHG
563 kt CO2e
emissions
1 commercial operation date
15
2 innogy investment spent 2014-2015, excl. OFTO asset
3 expected average annual generation of the project (innogy share)Eligible projects
Zuidwester onshore wind farm at a glance
Zuidwester
Country The Netherlands
Technology Onshore Wind
Location Westermeerdijk and Zuidermeerdijk
Full capacity 90 MW
Hub height (m) 135
No. of turbines 12 x 7.5MW Enercon turbines
innogy SE share 100%
Zuidwester part of one of Europe’s largest wind farms
COD1 2017 (in operation) The twelve state-of-the-art turbines of the Zuidwester wind
innogy investment2 159 EURm farm replace 50 installations dating from the 1980s and 1990s.
Statistically, one of the new turbines on its own can generate
innogy generation3 289 GWh
as much electricity as all 50 earlier models combined. The total
Avoided GHG installed capacity of the wind farm has increased sixfold from
133 kt CO2e
emissions 15 to 90 MW; annual production has risen ten times. The new
turbines have been operating at full capacity since the
beginning of 2017.
1 commercial operation date
16
2 innogy investment spent 2016-2017
3 expected average annual generation of the project (innogy share)Eligible projects
Nordsee One offshore wind farm at a glance
Nordsee One
Country Germany
Technology Offshore Wind
45 km distance to mainland shore /
Location
north of the island of Juist
Full capacity 332 MW
http://www.nordseeone.com
Water depth 26 – 29 metres
No. of turbines 54 x 6.15MW Senvion turbines
Foundation type Monopiles Precision work at high seas
In September 2016 inter-array cable laying works were successfully
innogy SE share 15 % completed. In total 70 kilometers of inter-array cables were laid
Planned COD1 2017 (under construction) and buried into the sea bed, three weeks ahead of schedule. In
addition all 54 wind turbine foundations, the offshore substation
innogy investment2 34 EURm and all turbines have already been installed. Commercial
innogy generation3 225 GWh commissioning of the 332 MW wind farm is anticipated by the end
Avoided GHG of 2017.
159 kt CO2e
emissions
1 commercial operation date
17
2 innogy investment spent 2014-2017
3 expected average annual generation of the project (innogy share)Eligible projects
Galloper offshore wind farm at a glance
Galloper
Country United Kingdom
Technology Offshore Wind
Location 30 km distance to mainland shore
Full capacity 336 MW
Water depth 27 – 36 metres
No. of turbines 56 x 6.0MW Siemens turbines Construction works are progressing well
Foundation type Monopiles As of September 2017, two export cables have been placed, 48 of
48 array cables have been laid, the Offshore Substation Platform
innogy SE share 25 % has been installed, and 28 of 56 turbines had been installed. The
Planned COD1 2018 (under construction) onshore substation is now connected to the national grid and has
been energised, and, subject to weather, first generation is
innogy investment2 104 EURm planned to happen during the next couple of months. A planning
innogy generation3 369 GWh permission has been received for a temporary helipad facility that
Avoided GHG will support the initial Operations & Maintenance phase of the
212 kt CO2e project.
emissions
1 commercial operation date http://www.galloperwindfarm.com 18
2 innogy investment spent 2015-2018, excl. OFTO asset
3 expected average annual generation of the project (innogy share)innogy‘s investment programme
innogy invests in its sustainable business
Triton Knoll
Indicative capex split
2017-2019E
Renewables
Grid & ~€1.5-1.7bn
Infrastructure
~€4.1 – 4.4bn Retail
~€0.7-
Intelligent 0.8bn
grids for
secure energy supply
19APPENDIX
Holger Perlwitz Verena Nicolaus-Kronenberg Lydia Beck
Contacts Fixed Income
T +49 201 12-15141
Head of Investor Relations
T +49 201 12-48538
Private shareholders
T +49 201 12-48236
holger.perlwitz@innogy.com verena.nicolaus-kronenberg@innogy.com lydia.beck@innogy.com
Lars Korinth Britta Wöhner
T +49 201 12-48329 T +49 201 12-44794
T +44 7557-198194 britta.woehner@innogy.com
lars.korinth@innogy.com
Marcel Rohrbach Martin Jäger
T +49 201 12-15043 T +49 201 12-15106
marcel.rohrbach@innogy.com martin.jaeger@innogy.com
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