Rwe Ag · XETR:RWE
Rwe — Non-Deal Roadshow (August 2006)
17 slides from Rwe's roadshow presentation, Aug 22, 2006
Slide 1: Strong 2006 performance despite regulatory risks
Strong 2006 performance despite regulatory risks Roadshow Summer 2006 As of August 22, 2006
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: Highlights H1 2006
Highlights H1 2006 Performance Operating result + 19%; adjusted for deconsolidation and f/x effects + 19% Net profit + 16% Cost reduction: € 120 million out of € 230 million achieved Financial Position Net financial debt at € 9.5 bn despite high dividend payment A1/A+ Ratings confirmed by
Slide 4: RWE group results
Performance RWE group results January – June change € million 2006 2005 in % EBITDA 5,072 4,439 +14.3 Operating result 4,104 3,455 +18.8 Non-operating result -449 -7 - Financial result -992 -1,052 +5.7 Income from continuing operations before tax 2,663 2,396 +11.1 Taxes on income -913 -841 -8.6 Inco
Slide 5: German power market: Prudent forward selling secures profit growth in NAP 1 period and beyond
Performance German power market: Prudent forward selling secures profit growth in NAP 1 period and beyond Forward selling of RWE Power in the German market (baseload forwards in €/MWh) 56 52 48 Forward 44 40 2006 36 32 28 >10% sold >25% sold >50% sold >80% sold >95% sold 24 64 60 56 52 Forward 48 44
Slide 6: Update on German grid regulation
Regulation Update on German grid regulation Approval letter for electricity transmission company (TSO) received – Some 9% cut of transmission grid fees as of August, 1st 2006 to December 31st, 2007 – Negative full year impact of ca. € 90 million (based on revenue of ca. € 1bn) Approval letters f
Slide 7: Update on planned disposal of RWE Thames Water and American Water
Strategy Update on planned disposal of RWE Thames Water and American Water American Water Petitions for regulatory approvals filed in 13 states – two approvals already received Projects for refinancing as well as risk management and internal control (in line with Sarbanes-Oxley-Act requirements)
Slide 8: We aim to grow our European energy business along the value chain
Strategy We aim to grow our European energy business along the value chain Opportunities Risks Aspiration Upstream Good returns Overheated oil and gas market Organic growth Kick-off LNG Leverage core Overbuilding Generation strength CO2 Privatizations Advanced asset Margin reductio
Slide 9: Our geographic focus is Europe
Strategy Our geographic focus is Europe Germany: Strengthen gas position to com- plement power UK: Eastern Europe: Strengthen Expand existing position as top CEE1 positions (and tier power and selectively occupy gas player positions in SEE2) U.K. NL Poland Germany Luxemb. Czech Netherlands: Republic
Slide 10: Recent initiatives for growth
Strategy Recent initiatives for growth Construction of power plant Gate (LNG) (optional) Entry into the Dutch Entry into the regasi- generation market fication market South Eastern Europe U.K. NL Interested in building a Poland Germany new power plant in Luxemb. Czech Bulgaria (Maritsa) Republic Slo
Slide 11: We aim to further leverage our core strength: monetization of asset optionalities in the power market
Strategy We aim to further leverage our core strength: The monetization of asset optionalities in the power market (II) Breakdown of generation capex Examples of initiatives 2006 - 2010 Growth initiatives Great Yarmouth (420 MW CCGT) 2 Pembroke/Staythorpe (up to 2,000 MW CCGT) ? Growth Renewab
Slide 12: Upstream oil & gas – competitive advantage in high price commodity markets
Strategy Upstream oil & gas – competitive advantage in high price commodity markets Overview of RWE Dea activities Highest ROCE within RWE Group Financial hedge against Norway fuel price volatility in power generation business and gas supply Great Britain especially in UK Germany Poland Divers
Slide 13: Update on Emissions Trading: The new German National Allocation Plan (NAP II)
Emissions Trading Update on Emissions Trading: The new German National Allocation Plan (NAP II ) The German NAP II was notified to the EU commission by end of June 2006 Key elements: – Emission cap for CO2 certificates: 482 mil t p.a. from 2008 – 2012 will be allocated to emitters in the energy
Slide 14: Update on Emissions Trading: Current status of UK Governmental draft (NAP II)
Emissions Trading Update on Emissions Trading: Current status of UK Governmental draft (NAP II) The UK published a drafted NAP II in March 2006; following public consultation, the Government announced further details of the NAP at the end of June Key elements: – Emission cap for CO2 certificates
Slide 15: Outlook for 2006
Performance Outlook for 2006 Operating result 20051 2006 € million forecast2 EBITDA 8,324 Operating result 6,201 +5% - 10% RWE Power (incl. RWE Trading) 2,112 RWE Energy 2,507 RWE npower 437 Water Division 1,416 1 Exchange rates of (€1 =) USD 1.24; GBP 0.68 2 Based on exchange rates of (€1 =) USD 1.
Slide 16: Outlook for 2006
Performance Outlook for 2006 20051 2006 € million forecast2 External revenue 41,819 Operating result 6,201 +5% - 10% Net income 2,231 ca. +10% * Recurrent net income 2,257 +10% - 20% ROCE 14.7% >14% Capex on fixed assets 3,667 ca. € 4.5 – 4.8 bn 1 Exchange rates of (€1 =) USD 1.24; GBP 0.68 2 Based
Slide 17: Reminder…
Reminder… To be always updated, please have a look at our webpage. Navigation around www.rwe.com Calendar Investor Relations > Calendar Annual Report Investor Relations > Financial Reports > Annual Report Interim Report Investor Relations > Financial Reports > Interim Reports Fact book (300