Rwe Ag · XETR:RWE
Rwe — Investor Day (June 2010)
37 slides from Rwe's investor day presentation, Jun 2, 2010
Slide 1: Facts & Figures
Facts & Figures Essent Capital Market Day Geertruidenberg, 2 June 2010
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: Table of Contents
Table of Contents General Dutch Energy Market Essent Renewables 1. Key characteristics of the Dutch and Belgium energy markets Page 4 Essent CMD | Facts & Figures | 2 June 2010 3
Slide 4: Key characteristics of the Dutch and Belgium energy markets
Key characteristics of the Dutch and Belgium energy markets Key characteristics NL market Key characteristics B market > Inhabitants (2009): 16.6 million > Inhabitants (2009): 10.8 million Groningen > Av. household consumption gas: 1,625 cm > Av. household consumption gas: 2,000 cm > Av. household c
Slide 5: Table of Contents
Table of Contents General Dutch Energy Market Essent Renewables 1. Market structure Page 6 2. Generation Page 8 3. Grid and interconnectors Page 14 4. Supply Page 17 Essent CMD | Facts & Figures | 2 June 2010 5
Slide 6: Structure of the Dutch power market 2009
Structure of the Dutch power market 2009 ~ 7 electricity generators 1 transmission system operator (TSO) ~ 8 distribution network operators ~ 6 major suppliers Net electricity consumption 108.5 TWh (2009) 73.1 TWh 35.4 TWh Industrials and large Households and other small consumers consumers Sources:
Slide 7: Structure of the Dutch gas market 2009
Structure of the Dutch gas market 2009 Production/Import/Export Producers and shippers 1 gas transporter (GTS) ~11 gas distribution operators ~5 major suppliers Total gas consumption 46.3 bcm (2009) 23.8 bcm 9.1 bcm 13.4 bcm Power Households/other Industrials stations small consumers Sources: Energi
Slide 8: Dutch generation mix
Dutch generation mix Installed capacity (2009) Generation output (2008)1 Total: 22.5 GW Total: 108.2 TWh Renewables 11% Other 6% Renewables 9% Other 6% Nuclear 2% Hard coal 18% Nuclear 4% Hard coal 21% Gas 63% Gas 60% Sources: CBS; Essent 1 In 2009, total generation output amounted to 112.2 TWh. Spl
Slide 9: Large-scale generation units in the Netherlands
Large-scale generation units in the Netherlands E.ON Benelux Windpark Westereems 156 MW Eemshaven Eemscentrale 2,442 MW Electrabel Nederland Delesto 530 MW Elsta1 Bergum 664 MW Eneco EPZ2 Essent HVC Alkmaar 94 MW WKC Klazinaveen 63 MW Nuon WKC Erica 63 MW Offshore Windpark Egmond aan Zee 108 MW Pume
Slide 10: Age structure of Dutch power plants
Age structure of Dutch power plants Age structure of power plants in the Netherlands in 2008 in GW1 Hard coal (4.1 GW) Gas (14.2 GW) Nuclear (0.5 GW) Age (years) Age (years) Age (years) > > > 50 50 50 40 40 40 30 30 30 20 20 20 10 10 10 GW GW GW 0 0 0 0 1 2 3 0 1 2 3 0 1 2 3 The Netherlands’ only nu
Slide 11: Dutch merit order
Dutch merit order Winter merit order 2009 Summer merit order 2009 €/MWh €/MWh 100 100 90 90 80 Average demand Average demand 80 70 70 60 60 50 50 40 40 30 30 20 20 10 Must run 10 Must run 0 0 Annual average available capacity ~19 GW Annual average available capacity ~19 GW Nuclear Coal Gas + Gas CHP
Slide 12: Development of Dutch clean spark spreads
Development of Dutch clean spark spreads 50 50 40 40 forward 30 30 2009 20 20 10 10 0 0 -10 -10 50 50 40 40 forward 30 30 2010 20 20 10 10 0 0 - 10 -10 50 50 40 40 forward 30 30 2011 20 20 10 10 0 0 - 10 -10 50 50 40 40 forward 30 30 2012 20 20 10 10 0 0 - 10 -10 01.01.2008 01.07.2008 01.01.2009 01.
Slide 13: Development of Dutch clean dark spreads
Development of Dutch clean dark spreads 160 40 120 30 forward 2009 80 20 40 10 0 0 160 40 120 30 forward 2010 80 20 40 10 0 0 160 40 120 30 forward 2011 80 20 40 10 0 0 160 40 120 30 forward 2012 80 20 40 10 0 0 01.01.2008 01.07.2008 01.01.2009 01.07.2009 01.01.2010 01.07.2010 01.01.2011 CDS Cal 200
Slide 14: Dutch energy grid infrastructure
Dutch energy grid infrastructure Electricity transmission system Gas transport system 380 kV TenneT Pipeline – Groningen gas 220 kV TenneT Pipeline – high-caloric gas 150 kV TenneT Pipeline – low-caloric gas 150 kV regional network operator Pipeline – desulphurised gas 110 kV regional network operat
Slide 15: Dutch interconnection capacity
Dutch interconnection capacity Interconnection capacity (Winter 2009/10) Import/export of electricity 2009 Net transfer capacities in GW Norway in TWh Norway (NorNed) Denmark Planned 0.7 0.7 0.7 2.81 1.26 capacities Total imports 15.45 0.7 Total exports 10.56 UK Net imports 4.89 (BritNed) 1.0 3.9 8.
Slide 16: Dutch distribution network areas
Dutch distribution network areas Electricity transmission system Gas transport system Enexis (formerly Essent) Delta Cogas Westland Liander (formerly Nuon) NRE Intergas NetH Stedin (formerly Eneco) Obragas Rendo Source: EnergieNed Essent CMD | Facts & Figures | 2 June 2010 16
Slide 17: Development of Dutch power consumption
Development of Dutch power consumption NL power consumption in TWh 120 100 Other large consumers 80 Industrials 60 Other small 40 consumers 20 Households 0 2002 2003 2004 2005 2006 2007 2008 2009 2002 2003 2004 2005 2006 2007 2008 2009 23.3 22.0 22.5 24.1 24.2 24.3 24.8 23.9 Households 11.0 13.4 14.
Slide 18: Development of Dutch gas consumption
Development of Dutch gas consumption NL gas consumption in bcm 60 50 Other large consumers 40 Power stations 30 Other small 20 consumers 10 Households 0 2002 2003 2004 2005 2006 2007 2008 2009 2002 2003 2004 2005 2006 2007 2008 2009 10.4 10.9 10.9 11.3 9.5 9.1 9.5 10.2 Households 4.9 4.9 4.4 2.8 3.6
Slide 19: Competitive Dutch electricity supply market
Competitive Dutch electricity supply market Power market shares households in NL (2009) Power market shares SME in NL (2009) 100% = 7.312 million households Others 8% Nuon 34% Electrabel 2.5% Others 5.4% Greenchoice 3.2% Electrabel 4% NEM 4.0% Delta 3% Oxxio 4.1% Nuon 29.1% Essent includes numbers O
Slide 20: Competitive Dutch gas supply market
Competitive Dutch gas supply market Gas market shares households in NL (2009) Gas market shares SME in NL (2009) 100% = 6.966 million households Greenchoice 3.0% Others 11% Nuon 32% E.ON 2.6% Others 5.4% Delta 2.3% Electrabel 4% Oxxio 2.5% Delta 3% NEM 3.9% Nuon 27.5% Essent includes numbers Oxxio 7
Slide 21: Customer churn rates in the Netherlands
Customer churn rates in the Netherlands Power household churn rates in NL in % 15.0 12.5 10.4% 10.0 9.3% 8.5% 7.5 5.6% 5.0 2.5 5.2% 0.0 2006 2007 2008 Until July 2009 Gas household churn rates in NL in % 15.0 12.5 11.2% 10.0 9.1% 8.3% 7.5 5.1% 5.0 2.5 5.6% 0.0 2006 2007 2008 Until July 2009 Source:
Slide 22: Market trend on switching and customer satisfaction
Market trend on switching and customer satisfaction Reasons for switch of households Reasons for switch of SME Dual Fuel 2% Other 5% Did not really want to switch 1% Preference for one supplier 1% Sustainable energy 2% Don’t know 2% Price; single time discount 3% Other 5% Preference for one supplier
Slide 23: Wholesale price and supply charges only represent 36% of Dutch electricity bills
Wholesale price and supply charges only represent 36% of Dutch electricity bills1 State: 11.81 ct/kWh Supply/Grids/Metering: 15.08 ct/kWh 26.89 ct/kWh Value-added tax6 4.29 16% 17% 4.56 Grid fee2 3% 0.70 Metering3 44% Energy tax5 7.52 28% 36% 9.82 Supply4 1 3,512 kWh/a 2 Weighted average of all regi
Slide 24: Table of Contents
Table of Contents General Dutch Energy Market Essent Renewables 1. Generation Page 25 2. CO2 emissions Page 31 3. Supply Page 32 Essent CMD | Facts & Figures | 2 June 2010 24
Slide 25: Essent – No 3 Generator in the Netherlands
Essent – No 3 Generator in the Netherlands Installed capacity shares in NL (2009) Total: 20.3 GW1 Others 4% Essent2 16% Delta 5% Intergen 4% E.ON 9% Horticulture sector 13% Electrabel 21% Industry sector 10% Nuon/Vattenfall 18% Sources: Essent 1 Excluding 2.2 GW of wind capacity 2 Excluding wind cap
Slide 26: Essent – Electricity generation mix 2009
Essent – Electricity generation mix 2009 Total installed capacity: 3.6 GW1 Total output: 16.5 TWh2 Wind 16.9% Hydro 0.3% Wind 6.5% Hydro 0.2% Biomass 0.9% Biomass 0.7% Coal 32.5% Gas 49.6% Coal 50.7% Gas 41.7% Of which 295 MW Of which 1,669 GWh biomass co-firing biomass co-firing 1 As per 31 Decembe
Slide 27: Essent plant portfolio 2009 (1/2)
Essent plant portfolio 2009 (1/2) Country (Netherlands Operating Com- RWE's legal RWE's economic Power Plant unless stated) Company missioned Net Capacity consolidation stake stake MW % MW % MW Hard coal Amercentrale ST 8 Essent 1980 580 100.0 580 100.0 580 Amercentrale ST 9 Essent 1993 600 100.0 60
Slide 28: Essent plant portfolio 2009 (2/2)
Essent plant portfolio 2009 (2/2) Country (Netherlands Operating Com- RWE's legal RWE's economic Power Plant unless stated) Company missioned Net Capacity consolidation stake stake MW % MW % MW Hydro Linne HH 1 – 4 Essent 1989 11 100.0 11 100.0 11 Total hydro 11 11 11 Biomass Cuijk Essent 1999 25 10
Slide 29: Essent dispatch rights
Essent dispatch rights Country (Netherlands Operating Com- RWE's legal RWE's economic Power Plant unless stated) Company missioned Net Capacity consolidation stake stake Partner MW % MW % MW Cogeneration (gas) Delesto 1 Essent 1987 180 0.0 0 50.0 90 Akzo Nobel Delesto 2 Essent 1998 350 0.0 0 50.0 17
Slide 30: Essent's major power plants in the Netherlands
Essent’s major power plants in the Netherlands Generation park Essent Name: Wind Place: Various Capacity: 201 MW Year of commission: Various Name: Moerdijk I Name: Mid-sized units Place: Moerdijk Place: Enschede, Helmond, etc. Fuel: Gas Fuel: Gas Capacity: 339 MW Capacity: 352 MW Year of commission:
Slide 31: Essent's emissions profile
Essent’s emissions profile Emissions profile1 2009 Emissions balance1 Geertruidenberg 62% (in million metric tons) 2007 2008 2009 Other 21% CO2 emissions 9.4 8.8 9.4 of which in EU ETS 9.1 8.5 9.1 Maasbracht 6% Free allocation of CO2 10.7 8.7 8.6 certificates Surplus/Shortage of 1.6 0.2 -0.5 CO2 cer
Slide 32: Essent number of electricity and gas customers
Essent number of electricity and gas customers Customer accounts 2009 ('000 contracts) Electricity 2,316 Gas 1,979 Total 4,295 Thereof RWE Energy Netherlands 361 Essent CMD | Facts & Figures | 2 June 2010 32
Slide 33: Essent energy sales by customer group (2009)
Essent energy sales by customer group (2009) Electricity sales Gas sales Total: 23.7 TWh Total: 118.3 TWh Electricity Private & commercial Electricity Private & commercial trading 12% customers 55% trading 9% customers 44% Industrial & Industrial & corporate corporate customers customers 33% 47% Not
Slide 34: Table of Contents
Table of Contents General Dutch Energy Market Essent Renewables 1. Generation Page 35 2. Support mechanism Page 36 3. RWE’s Dutch wind portfolio Page 37 Essent CMD | Facts & Figures | 2 June 2010 34
Slide 35: Renewable energy's share of total electricity generation in NL
Renewable energy’s share of total electricity generation in NL Generation output (2008) Renewables generation Nuclear 1% Hydro/Solar 15% Other biomass 60% 24% Biomass co-firing Gas 4% 12% Waste to energy 9% 7% Offshore wind 6% 41% Onshore wind 21% Coal Other Source: CBS Essent CMD | Facts & Figures
Slide 36: Renewables support framework in the Netherlands
Renewables support framework in the Netherlands Dutch Government has ambitious targets… …and is committed to support renewable energies Share of renewables in primary > Since 2004 renewable energy was supported in the Netherlands by MEP energy consumption (“Milieukwaliteit Elektriciteits Productie”)
Slide 37: RWE's Benelux wind portfolio
RWE’s Benelux wind portfolio Number of Turbine # Plant name Capacity (MW) Start-up turbines manufacturer Type of turbine The Netherlands 1 WP Scheemda 1.0 1995 12 Lagerwey 80kW 2 WP Harkstede 1.0 1997 12 Lagerwey 80kW 3 Wind turbine Spijk 0.9 2002 1 Vestas V52 4 Wind turbine Pieterburen 0.1 1995 1 L