Rwe Ag · XETR:RWE
Rwe — Shareholder Meeting (April 2012)
27 slides from Rwe's shareholder meeting presentation, Apr 19, 2012
Slide 1: Annual General Meeting of RWE AG on 19 April 2012
Annual General Meeting of RWE AG on 19 April 2012 Dr. Juergen Grossmann Chief Executive Officer
Slide 2: Shaping energy transformation since 2008: €23 billion invested
We have been shaping energy transformation since 2008: €23 billion invested » Nine highly efficient » Around €700 million annually for the gas and coal-fired power plants distribution networks in Germany » Europe’s leading investor in » Wide range of products from energy renewables efficiency to ele
Slide 3: Our efforts are rewarded
Our efforts are rewarded » European School of Technology » Fortune ranks RWE number 3 votes RWE European innovation amongst most renowned global leader in the industry energy utilities 1 1 2 3 4 5 3 3 8 2008 2009 2010 2011
Slide 4: We get things done – 24/7!
We get things done – 24/7! » 72,000 employees, of which 36,000 are in Germany » Occupational safety: Reduction in accident numbers for 10th year in succession » We continue to train far more people than we need
Slide 5: The topics
The topics How did RWE‘s What challenges will What is RWE doing business develop RWE have to to ensure its long- last year? overcome in the next term success? few years? What is the current status on our package of measures? 1 2 3
Slide 6: The topics
The topics How did RWE‘s What challenges will What is RWE doing business develop RWE have to to ensure its long- last year? overcome in the next term success? few years? What is the current status on our package of measures? 1 2 3
Slide 7: A difficult year behind us
A difficult year behind us 2011 Compared to 2010 (in € billions) EBITDA 8.5 -18% Operating 5.8 -24% result Recurrent 2.5 -34% net income CAPEX 6.4 +/- 0%
Slide 8: Main reasons for decline in earnings
Main reasons for decline in earnings 1 Decoupling of gas and oil prices 2 Deterioration in earnings situation in German electricity generation 3 Exit from nuclear energy in Germany
Slide 9: Legal proceedings on nuclear energy
Legal proceedings on nuclear energy » Legal action against the three-month moratorium on nuclear energy » Review of lawfulness of tax on nuclear fuels » Constitutional complaint against 13th amendment to Atomic Energy Act Judicial decision will make situation clearer for shareholders
Slide 10: Dividend proposal for 2011
Dividend proposal for 2011 (€ per share) » Payout ratio of 50% 4.50* of recurrent net income 3.50* 3.50 3.50 » High dividend yield: 3.15 7.4% for ordinary shares, 7.9% for preference shares 2.00 1.75 1.50 1.25 2003 2004 2005 2006 2007 2008 2009 2010 2011 * Increased payout ratio
Slide 11: Upward trend for RWE share price since beginning of 2012
Upward trend for RWE share price since beginning of 2012 Performance of RWE shares (in €) » Implementation of package of measures is seen as positive 60 Ordinary share 50 Preferred share 40 30 20 10 0 30.12.2010 30.12.2011
Slide 12: Package of measures to ensure our future success
Package of measures to ensure our future success 1 Capital measures Strengthening of 2 Divestment of parts of business financial power for long-term 3 Efficiency programme growth 4 Streamlining of investment budget
Slide 13: Capital measures almost complete
Capital measures almost complete » Equity capital increased by €2.1 billion » Hybrid bonds (mix of equity and third-party capital) placed for around €1.5 billion
Slide 14: Sale of parts of business
Sale of parts of business Divestments reduced by up to €7 billion Activities of RWE Dea Parts of German sales and distribution networks business NET4GAS … Other (Berlinwasser, stakes in fossil-fuelled power plants)
Slide 15: New efficiency programme introduced
New efficiency programme introduced (in € millions) » We are progressing faster than 250 1,000 planned 750 » Target: leverage earnings potential of 500 €1 billion by 2014 250 » Focus on cost reductions and increase in proceeds 500 500 2013 2014 Total
Slide 16: Streamlining of investment budget approved
Streamlining of investment budget approved CAPEX in € billions » Investments of €16 billion planned for 2012–2014 6.4 6.4 5.9 ~6 ~4 – 5 » 50% earmarked for growth 4.5 projects » Growth areas: RWE Innogy, RWE Dea, Central Eastern and South Eastern Europe 2008 2009 2010 2011 2012 2013 2014 planned
Slide 17: Faster, more flexible, closer
Faster, more flexible, closer » Reduction of duplicate functions implemented » Sales and distribution networks centralised » More responsibility in the regions » Expertise on power plant new build pooled within RWE Technology
Slide 18: The topics
The topics How did RWE‘s What challenges will What is RWE doing business develop RWE have to to ensure its long- last year? overcome in the next term success? few years? What is the current status on our package of measures? 1 2 3
Slide 19: Transformation of energy industry is complex
Transformation of energy industry is complex What has to be done: What we are doing: » Expansion of renewables » We invest some €1 billion each year in renewables » Investment in grids and storage » We are investing some €700 million in distribution networks » Enhance energy efficiency » We are Euro
Slide 20: The topics
The topics How did RWE‘s What challenges will What is RWE doing business develop RWE have to to ensure its long- last year? overcome in the next term success? few years? What is the current status on our package of measures? 1 2 3
Slide 21: We have the right strategy
We have the right strategy » RWE is becoming more international, more robust, more sustainable » Guiding principle: to increase corporate value
Slide 22: A more international RWE
A more international RWE » Europe remains our core market » Regional growth markets in Central Eastern and South Eastern Europe » Expansion of renewables, also outside core markets » Oil and gas production also in the Caspian region and Northern Africa RWE core markets with established market positi
Slide 23: A more robust RWE
A more robust RWE » Presence at all value creation stages » Geographical diversification within Europe » Balanced generation portfolio across all technologies » Stable earnings contribution from regulated business Energy Electricity Electricity trading/ and and Raw materials production Power generat
Slide 24: A more sustainable RWE
A more sustainable RWE Lower CO2 emissions Expansion of renewables Efficient use of energy » 20% by 2020 compared to » Expansion of renewables to » Efficiency improvement of base year 2005 at least 20% of power conventional power plants generation capacity by » Energy efficiency with Specific CO2 em
Slide 25: RWE remains a reliable partner
RWE remains a reliable partner » We accept the primacy of politics » Our strategy makes an essential contribution to the transformation of the energy landscape » RWE is involved in all future topics » Europe remains our main market
Slide 26: Outlook
Outlook 2012: EBITDA, operating result and recurrent net income on a par with previous year Dividend policy unchanged: Payout of 50-60% of recurrent net income New team established: Executive Board succession decided Focus on implementation of our package of measures
Slide 27: RWE
RWE The energy to lead