Rwe Ag · XETR:RWE
Rwe — Q1 2015 Earnings Presentation
27 slides from Rwe's earnings presentation, May 13, 2015
Slide 1: Investor and Analyst Q1 2015 Conference Call
Investor and Analyst Q1 2015 Conference Call Essen, 13 May 2015 Bernhard Günther Stephan Lowis Chief Financial Vice President Officer Investor Relations
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains certain forward-looking statements within the meaning of the US federal securities laws. Especially all of the following statements > Projections of revenues, income, earnings per share, capital expenditures, dividends, capital structure or other
Slide 3: Main messages for Q1 2015
Main messages for Q1 2015 Financial performance for first quarter: EBITDA -3.4%, operating result -5.1%, recurrent net income +10.0% Group outlook for 2015 confirmed Net debt improved significantly to €27.7 bn (-€3.3 bn vs. 31.12.2014) Closing RWE Dea transaction for an enterprise value of €5.1 bn P
Slide 4: Development of main KPIs
Development of main KPIs RWE key figures for Q1 2015 € million EBITDA and operating result declined mainly due to ongoing 2,204 EBITDA -3.4% margin erosion in conventional power generation. This was 2,281 partly offset by normalised weather conditions in our retail business units and positive f/x ef
Slide 5: Development of the major earning figures in Q1 2015
Development of the major earning figures in Q1 2015 +/- vs. Non-operating result down mainly due to € billion Q1 2015 Q1 2014 general risk provisions and impact from commodity derivatives. EBITDA 2.2 -0.1 Financial result improved mainly due to positive one-off from tax-free sale of Depreciation -0.
Slide 6: Development of operating result by division
Development of operating result … … by division (-€88 million; -5.1%) Earnings in Conventional Power Generation under pressure due to declining generation € million margins. Q1 2014 1,718 Earnings in energy retail business units Conventional supported by normalised weather conditions. Power Generati
Slide 7: Development of cash flows from operating activities
Development of cash flows from operating activities Strong decline in cash flows1 driven by movements in working capital € billion +0.4 -0.6 +0.1 +0.2 -0.3 -0.1 -0.3 0.0 -0.6 CFOA CFOA Change in Lower Others Procurement Higher Accounts Others Q1 20141 Q1 20151 variation use of of CO2 accounts payabl
Slide 8: Strong improvement of net debt after successful disposal of RWE Dea
Strong improvement of net debt after successful disposal of RWE Dea € billion Cash flows Capex on Dividends1 Divestments1 Change Others from operat- property, plant in pension, including f/x ing activities1 and equipment nuclear, effects and intangible mining assets and provisions1 financial assets1
Slide 9: Outlook for 2015 confirmed
Outlook for 2015 confirmed € million EBITDA 7,131 6,100 – 6,400 Operating 4,017 3,600 – 3,900 result Recurrent 1,282 1,100 – 1,300 net income1 Dividend €1.00/share Oriented towards growth opportunities, indebtedness and earnings situation. The dividend for 2014 serves as a reference point. 2014 2015
Slide 10: 2015 divisional outlook for the operating result
2015 divisional outlook for the operating result € million 2014 2015 forecast versus 2014 Conventional Power Generation1 979 Significantly below 2014 Supply/Distribution Networks Germany 1,871 Moderately below 2014 Supply NL/B 146 Significantly above 2014 Supply UK 227 Moderately above 2014 Central
Slide 11: Back-up Charts
Back-up Charts i a. ey The energy to lead
Slide 12: Performance of the Conventional Power Generation Division
Performance of the Conventional Power Generation Division January – March: operating result: -23% (-€131 million) € million - Lower realised electricity generation spreads + Efficiency improvements 559 428 2014 2015 Outlook for fiscal 2015: significantly below previous year € million - Lower realise
Slide 13: RWE's forward hedging of conventional electricity production
RWE’s forward hedging of conventional electricity production (German, Dutch and UK portfolio) As of 31 March 2015 >30% >10% >40% >10% >40% >20% >50% >30% >60% >40% >60% >50% >80% >60% >90% >70% >90% >70% 2015 forward 31 Dec. 2012 31 March 2013 30 June 2013 30 Sep. 2013 31 Dec. 2013 31 March 2014 30
Slide 14: Germany: Clean Dark and Spark Spreads
Germany: Clean Dark (CDS) and Spark Spreads (CSS) 2014 forward 2015 forward 2016 forward 16 12 Ø 8.79 8 Ø 6.63 4 Ø 5.08 0 Ø -5.38 Ø -4.87 -4 -8 Ø -6.84 -12 -16 Trading year 2013 Trading year 2014 Trading year 2015 3 4 5 3 4 5 3 4 5 13 14 15 -1 -1 -1 r-1 r-1 r-1 l- 1 l- 1 l- 1 n- n- n- kt kt kt Ju Ju
Slide 15: NL: Clean Dark and Spark Spreads
NL: Clean Dark (CDS) and Spark Spreads (CSS) 2014 forward1 2015 forward1 2016 forward 20 Ø 11.43 Ø 11.78 15 10 Ø 9.18 5 0 Ø -7.46 Ø -6.32 -5 -10 Ø -7.52 -15 -20 Trading year 2013 Trading year 2014 Trading year 2015 3 4 5 3 4 5 3 4 5 13 14 15 -1 -1 -1 r-1 r-1 r-1 l- 1 l- 1 l- 1 n- n- n- kt kt kt Ju J
Slide 16: UK: Clean Dark and Spark Spreads
UK: Clean Dark (CDS) and Spark Spreads (CSS) 2014 forward1 2015 forward1 2016 forward1 28 Ø 22.49 24 Ø 16.97 20 16 12 Ø 12.01 8 Ø 5.12 Ø 2.03 Ø 3.65 4 0 Trading year 2013 Trading year 2014 Trading year 2015 3 4 5 3 4 5 3 4 5 13 14 15 -1 -1 -1 r-1 r-1 r-1 l- 1 l- 1 l- 1 n- n- n- kt kt kt Ju Ju Ju Ap
Slide 17: Performance of the Supply/Distribution Networks Germany Division
Performance of the Supply/Distribution Networks Germany Division January – March: operating result: -2.0% (-€13 million) € million - Lower earnings from the disposal of grid assets + Weather-induced higher electricity and gas demand 656 643 2014 2015 Outlook for fiscal 2015: moderately below previou
Slide 18: Performance of the Supply Netherlands/Belgium Division (Essent)
Performance of the Supply Netherlands/Belgium Division (Essent) January – March: operating result: +51% (+€36 million) € million + Weather-induced higher demand, especially in the gas business + Release of provision which was built for legal risks 70 106 + Marketing of new supply offerings 2014 2015
Slide 19: Performance of the Supply United Kingdom Division (RWE npower)
Performance of the Supply United Kingdom Division (RWE npower) January – March: operating result: +13% (+€16 million) € million + Positive f/x effects + Lower costs for ‘Energy Companies Obligation’ (ECO) programme 128 144 + Lower gas procurement costs - Reduction of standard gas tariff by 5.1% (as
Slide 20: Performance of the Central Eastern and South Eastern Europe Division
Performance of the Central Eastern and South Eastern Europe Division January – March: operating result: -12% (-€35 million) € million Czech Republic: - Lower gas storage margins + Improved regulatory conditions for gas distribution grid 286 + Weather-induced higher distributed gas volumes and sales
Slide 21: Performance of the Renewables Division (RWE Innogy)
Performance of the Renewables Division (RWE Innogy) January – March: operating result: +56% (+€54 million) € million + Increased earnings contribution from growth investments, mainly Gwynt y Môr and sale of grid connection asset of this project 151 97 + Positive f/x effects from our UK business 2014
Slide 22: Performance of the Trading/Gas Midstream Division
Performance of the Trading/Gas Midstream Division (RWE Supply & Trading) January – March: operating result: +17% (+€1 million) € million Trading: Stable earnings contribution from trading activities Supply: Still suffering from out of the money long-term gas storage contracts 6 7 2014 2015 Outlook f
Slide 23: Financial liabilities and assets
Financial liabilities and assets (Excluding hybrid capital as of 31 March 2015) Financial liabilities Financial assets Split of € billion € billion securities 20 17.9 20 18% 16.1 2.2 15 1.4 15 1.9 1.3 0.4 11.7 11.2 0.4 0.7 10 3.3 3.3 10 13.4 13.4 0.7 0.7 5 5 6.8 7.0 1.8 0.3 0.5 0.6 0.2 0.8 0 0.4 0 S
Slide 24: Capital market debt maturities and sources of financing
Capital market debt maturities and sources of financing Capital market debt maturities1 Strong sources of financing € billion Fully committed syndicated loan For liquidity 2.5 2,5 20 20 (€4.0 bn up back-up to March 2020) €0.0 bn 2.0 2,0 16 16 1,5 1.5 12 12 Commercial paper $0.0 bn ($5.0 bn) (up to 1
Slide 25: Capital market debt currency and interest exposure
Capital market debt currency and interest exposure (as of 31 March 2015) 8% 39% €16.5 bn11 €15.8 bn2 61% 92% € Interest rate fixing expiry > 1 year £ Interest rate fixing expiry < 1 year 1 Capital market debt = bonds of €12.4 bn and hybrids of €4.1 bn; split into currencies includes cross-currency s
Slide 26: RWE's major investment projects
RWE’s major investment projects RWE Capex share (€ bn) 2013 2014 2015 2016 2017 2018 Conventional new build power plant programme (capex at 100% share) Hamm (hard coal, 1,528 MW)1 77% 2.5 Unit E (764 MW) Eemshaven (hard coal/biomass, 1,554 MW)2 100% 3.1 Units A&B 1 The date for bringing unit D (764
Slide 27: Keep up with RWE
Keep up with RWE … Follow us on twitter.com/RWE_IR and have a look at www.rwe.com/ir Financial calendar http://www.rwe.com/web/cms/en/110614/rwe/investor-relations/events/calendar/ Annual and Interim Reports http://www.rwe.com/web/cms/en/110822/rwe/investor-relations/reports/ Investor and Analyst Co