Rwe Ag · XETR:RWE
Rwe — Debt Investor Presentation (October 2012)
12 slides from Rwe's debt investor presentation, Oct 9, 2012
Slide 1: Securing flexible financing
Securing flexible financing Markus Coenen Head of Group Finance, RWE AG RWE Credit Day London, 9 October 2012
Slide 2: 2012 in financial terms so far
2012 in financial terms so far H1 2012 operating performance: EBITDA +9%, operating result +9%, recurrent net income on last year’s level Confirmation of guidance for FY 2012 Completion of hybrid bond programme – € 2 billion in total volume (in several currencies) achieved Confirmation of A3 (negati
Slide 3: Our main financial targets
Our main financial targets Targeting a healthy > Securing access to money markets and capital markets at all times and efficient > Leverage factor (net debt to EBITDA mid term below or equal to 3.0) as an balance sheet operational instrument > Mid-term target to cover investments and dividends by ca
Slide 4: Capital market debt maturities and sources of financing
Capital market debt maturities and sources of financing Capital market debt maturities1 Strong sources of financing1 in € bn 2,5 MTN programme € 30 bn (up to 30 years) 20,0 20 € 16.2 bn )2 2,0 16 1,5 12 Commercial paper $ 5.0 bn 1,0 (up to 1 year) 8 € 0.4 bn 0,5 4 0,0 0 Fully committed for liquidity
Slide 5: Business risk profile
Following S&P‘s revision of the financial risk profile, RWE is now at BBB+ Financial risk profile Minimal Modest Inter- Signifi- Aggressive Highly mediate cant leveraged Excellent AAA AA A A- BBB -- Business risk profile Strong AA A A- BBB BB BB- Satis- A- BBB+ BBB BB+ BB- B+ factory Fair -- BBB- BB
Slide 6: Recent rating actions reflect S&P's and Moody's cautious view on the sector
Recent rating actions reflect S&P’s and Moody’s cautious view on the sector Company Date Agency Before Current 08/2012 S&P A-/stable A-/watch neg. 07/2012 S&P A-/stable A-/negative 07/2012 S&P A/negative A-/stable 07/2012 S&P A-/negative BBB+/stable 07/2012 Moody’s A1/watch neg. A1/negative 05-06/20
Slide 7: RWE's CDS and peers
RWE‘s CDS and peers > RWE‘s Credit Default Swap moved in line with the market after the downgrade Credit Default Swaps 26 July 2012 Last price before downgrade bps 180 160 140 iTraxx Industrials 5Y 120 100 RWE CDS 5Y EnBW CDS 5Y 80 E.ON CDS 5Y 60 Vattenfall CDS 5Y 40 02.07.2012 16.07.2012 30.07.2012
Slide 8: RWE's 2015 bond
RWE‘s 2015 bond > RWE‘s 2015 bond (2 bn €) also did not show any reaction to the downgrade Yield ofRWE Rendite RWE‘s 2015 2015er bond Anleihe % 1,3 26 July 2012 Last price before downgrade 1,1 0,9 RWE 5% 2015 0,7 0,5 02.07.12 16.07.12 30.07.12 13.08.12 27.08.12 10.09.12 24.09.12 RWE Credit Day I 9 O
Slide 9: RWE's hybrid bonds
RWE‘s hybrid bonds > RWE‘s hybrid bonds were also unaffected by the downgrade Yield of RWE‘s hybrid bonds in EUR, GBP and USD RWE Hybride in EUR, GBP und USD % 7,0 26 July 2012 Last price before downgrade 6,5 6,0 GBP (2019) USD (2017) 5,5 5,0 EUR (2015) 4,5 4,0 02.07.2012 16.07.2012 30.07.2012 13.08
Slide 10: Completion of capital measures to strengthen our balance sheet
Completion of capital measures to strengthen our balance sheet Equity measure of € 2.1 bn in December 2011 > Accelerated bookbuilt offering with partial claw-back > Use of 28 million treasury shares with subscription rights > Use of authorised capital – 52 million new shares – without subscription r
Slide 11: Counterparty risk: banking sector is still affected by uncertainty and mistrust
Counterparty risk: banking sector is still affected by uncertainty and mistrust Observations at the credit market Development reference index* since Sep 2011 350 325 With the extension of the European sovereign 300 crisis uncertainty and mistrust concerning the spread in bp 275 credit standing of ba
Slide 12: RWE adjusts bank limit allocation due to changing market conditions
RWE adjusts bank limit allocation due to changing market conditions > RWE’s internal base limit for the counterparty risk is Credit indicators derived from the amount of equity and the rating of the financial counterparty > Minimum rating of the three rating agencies S&P, Moody’s Equity and Fitch is