Rwe Ag · XETR:RWE
Rwe — Debt Investor Presentation (October 2012)
16 slides from Rwe's debt investor presentation, Oct 9, 2012
Slide 1: RWE Credit Day
RWE Credit Day London, 9 October 2012
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: Today's Agenda
Today’s Agenda A Prudent financial policy Rolf Pohlig, Chief Financial Officer, RWE AG B Value in uncertain times Bernhard Günther, Member of the Executive Board, RWE AG C Securing flexible financing Markus Coenen, Head of Finance, RWE AG D Perspective for the energy system of the future Frank-Detle
Slide 4: Prudent financial policy
Prudent financial policy Rolf Pohlig Chief Financial Officer, RWE AG RWE Credit Day London, 9 October 2012
Slide 5: Value in uncertain times
Value in uncertain times Bernhard Günther Member of the Executive Board, RWE AG RWE Credit Day London, 9 October 2012
Slide 6: RWE's strategic cornerstones
RWE’s strategic cornerstones > Reduce specific CO2 emissions by more than 20% by 2020 compared to 2005 > Increase renewable generation capacity to at least 20% by 2020 > Conservation of resources through higher energy efficiency > Focus on core > Active along the entire markets in Northwest value ch
Slide 7: Continued execution of measures to support financial strength
Continued execution of measures to support financial strength Expected development of leverage factor (Net debt1/EBITDA) Target of ≤ 3.0 2.8 3.5 2010 2011 2012e … Measures to improve financial headroom Capital Divestments Focused long-term Efficiency measures capex programme programme up to €7bn by
Slide 8: Strict investment discipline provides platform for sustainable dividends
Strict investment discipline provides platform for sustainable dividends Mid-term target to cover investments and dividends by cash flows from operating activities € billion 9.4 8.8 > Capex level will normalise beyond 2013 > Pay-out ratio of 5.5 5.5 50% - 60% of recurrent net income > Flexibility to
Slide 9: RWE 2015 - four action fields to align RWE with changing market environment
RWE 2015 - four action fields to align RWE with changing market environment > Identify opportunities > Eliminate structural and of energy market operational duplications transformation and clarify interfaces > Align execution to > Establish European changing market generation company environment Str
Slide 10: High renewables feed-in reduces profitability of peaking plants in Germany
High renewables feed-in reduces profitability of peaking plants in Germany GW €/MWh The current challenge in the 20 100 German generation market 18 90 1. The rise in renewable 16 80 capacity… 14 70 2. … increases the pressure on load factors, particularly of gas- 12 60 fired power plants as peak 10
Slide 11: German electricity system at its limit
German electricity system at its limit Capacity situation on 8 February 2012 Sufficient electricity supply was only guaranteed on the basis of very few outages in the thermal generation fleet GW12 150 Solar 100 8 Wind Hydro 50 4 Thermal capacity 00 Installed Capacity Required German domestic Net exp
Slide 12: RWE: most diversified generation mix in Europe
RWE: most diversified generation mix in Europe Share in power plant capacity of own generation by fuel type 2011 (installed capacity) 100% 80% 60% Hydro/ other 40% Gas Hard Coal 20% Lignite 0% Nuclear Centrica CEZ EDF Enel E.ON Fortum GDF Iberdrola RWE SSE Source: Annual reports, company presentatio
Slide 13: Our lignite based electricity generation is at full load
Our lignite based electricity generation is at full load Average hourly utilisation of RWE’s 300 MW lignite blocks is at ∼100%* > Photovoltaic installations have reached a new record high in Germany (c. 30 GW as of July 110% 1,1 2012) > Lignite baseload electricity generation still at full load if t
Slide 14: RWE's generation portfolio ideally positioned as pan-European operation
RWE’s generation portfolio is ideally positioned to be managed as a pan-European operation RWE’s power plants in Europe Competitive Positions Core- Market Dispatch Markets Position Portfolio Westfalen Datteln Gersteinwerk Voerde GK West Scholven Bergkamen Knepper Walsum Herne Dortmund Bochum Herdeck
Slide 15: RWE Generation to start operations in 2013
RWE Generation to start operations in 2013 Envisaged organisational structure RWE Generation Coal, gas, Lignite Hydro2 Nuclear biomass1 (incl. mines) 1 Biomass co-firing 2 Pumped storage, O&M contracts, run-of-river-plants in RWE Innogy > Bundling of conventional generation activities in one generat
Slide 16: In summary
In summary We are progressing in strengthening the balance sheet. We will consider further flexibility in the capex programme, if necessary. We launched “RWE 2015”, designed to enhance the Group’s capabilities to cope with the current challenges. We introduced in March a new € 1bn efficiency target