Rwe Ag · XETR:RWE
Rwe — Shareholder Meeting (April 2013)
20 slides from Rwe's shareholder meeting presentation, Apr 18, 2013
Slide 1: RWE AG Annual General Meeting on 18 April 2013
RWE AG Annual General Meeting on 18 April 2013 Peter Terium Chairman of the Executive Board
Slide 2: RWE is helping to restructure the energy system
RWE is helping to restructure the energy system > Four wind parks at sea by 2014 > Nine state-of-the-art gas and coal-fired power stations by 2014 > Preparing our distribution networks for the transformation of the energy market > Market leader in energy efficiency and electric mobility > RWE Vertri
Slide 3: Good financial year in 2012
Good financial year in 2012 2012 Compared to 2011 in bn. € EBITDA 9.3 +10% Operating result 6.4 +10% Recurrent 2.5 +/-0% net income CAPEX 5.1 -20%
Slide 4: Dividend proposal: €2 per share
Dividend proposal: €2 per share in € per share = Pay-out of 50% of 4.50* recurrent net income 3.50* 3.50 3.50 = Dividend yield of 3.15 6.4% for ordinary shares 7.0% for preferred shares 2.00 2.00 1.75 1.50 2004 2005 2006 2007 2008 2009 2010 2011 2012 * Higher payout ratio
Slide 5: Expansion and modernisation of our generation capacity
Expansion and modernisation of our generation capacity Renewables Gas-fired power station Hard coal-fired power station Lignite-fired power station 2010 2012 2013 2014
Slide 6: Medium-term target for leverage factor (net debt/EBITDA): ≤ 3.0x
We used debt financing to make important investments for the future: Increase in net debt Medium-term target for leverage factor (net debt/EBITDA): ≤ 3.0x Net debt in € bn. 33.0 29.0 29.9 25.8 On a 16.2 16.9 19.9 par 18.7 15.4 with 15.1 12.8 13.0 13.1 2012 10.4 2008* 2009 2010 2011 2012 2013e * €0.7
Slide 7: RWE shares under increased pressure since autumn last year
RWE shares under increased pressure since autumn last year RWE share price > Majority of financial analysts in € has downgraded RWE shares 40 30 20 30 Dec. 2011 28 Dec. 2012 Ordinary shares Preferred shares
Slide 8: On sunny days, conventional power stations are pushed out of the market
On sunny days, conventional power stations are pushed out of the market Example gas-fired power station Gersteinwerk Production in June and July 2009 Production in June and July 2011 in megawatts in megawatts 400 400 300 300 200 200 100 100 0 0 June 2009 July 2009 June 2011 July 2011 Since 2012 runn
Slide 9: Increasing feed-in of wind and solar leads to decreasing forward wholesale prices
Increasing feed-in of wind and solar power leads to decreasing forward wholesale electricity prices in Germany in €/megawatt hour 2015 forward price (base load electricity) 2014 forward price (base load electricity) 60 55 50 45 40 35 Jan 11 Apr 11 Jul 11 Oct 11 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr
Slide 10: Further development of the electricity market model
Further development of the electricity market model according to the principle “one target – one tool” Target: Security Target: Climate protection Target: Affordable of supply and sustainability electricity Compensation for EU emissions trading Market integration of reserving power plant system with
Slide 11: We face huge challenges – therefore we will …
We face huge challenges – therefore we will … 1. … further reduce our costs. 2. … significantly reduce our investments. 3. … further develop our business.
Slide 12: “RWE 2015” is not simply a cost-cutting exercise, it is multi-facetted
“RWE 2015” is not simply a cost-cutting exercise, it is multi-facetted Strategy Structures/roles Cultural change > Make use of > Further streamlining > Constant focus on opportunities of structures and improving presented by energy processes performance transformation
Slide 13: Cash flows from operating activities to cover investments and dividends from 2015
Cash flows from operating activities to cover investments and dividends from 2015 in € bn. 8.8 9.3 7.1 5.5 5.5 4.4 ≤ … 2010 2011 2012 2015e Capex in property, plant and equipment and financial assets Dividends, year of payment Cash flows from operating activities
Slide 14: We are leveraging the opportunities of energy transformation
We are leveraging the opportunities of energy transformation and are further developing our business > Expansion of renewables > Support our customers in efficient use of energy > Expansion and technical optimisation of our distribution networks
Slide 15: We are continuing with the expansion of renewables
We are continuing with the expansion of renewables; however we have less financial resources available to do this > Share of renewables in our > RWE Innogy will invest €2 billion generation capacity: 8 per cent between 2013 and 2015 > Installed capacity until end of 2014 > Focus on wind power on lan
Slide 16: Smart Country: Integration of local production into grid
Smart Country: Integration of local production into grid
Slide 17: We offer our customers viable solutions for efficient use of energy
We offer our customers viable solutions for efficient use of energy > Smart Home wireless home automation system > Introduction of smart meters > Comprehensive energy advice for residential and corporate customers
Slide 18: We will continue to be a leading electricity and gas provider in Europe
We will continue to be a leading electricity and gas provider in Europe > Around 70,000 employees serve over 16 million electricity customers and over 8 million gas customers > In terms of sales we are no. 3 in electricity and no. 5 in gas in Europe Established market position in electricity and/or
Slide 19: We confirm our outlook for 2013
We confirm our outlook for 2013 Outlook 2013 > Dividend policy unchanged: in bn. € Pay-out of 50 – 60% of recurrent ~9.0 net income > We are pressing forward with ~5.9 our “RWE 2015” programme > After 2013, it will become more ~2.4 difficult to continue at this level EBITDA Operating Recurrent net r
Slide 20: Our target: To be the most trusted, high-performing partner
Our target: To be the most trusted, high-performing partner for the transformation of the energy system