Rwe Ag · XETR:RWE
Rwe — Q1 2014 Earnings Presentation
26 slides from Rwe's earnings presentation, May 14, 2014
Slide 1: Investor and Analyst Q1 2014 Conference Call
Investor and Analyst Q1 2014 Conference Call Essen, 14 May 2014 Bernhard Günther Stephan Lowis Chief Financial Vice President Officer Investor Relations
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: Main messages for Q1 2014
Main messages for Q1 2014 Performance in line with our expectations: EBITDA -16%, operating result -18%, recurrent net income -36% Disposal of RWE Dea at an enterprise value of €5.1 bn; closing expected later this year; reporting under ‘discontinued operations’ as of H1 2014 retrospectively Successf
Slide 4: Outlook for 2014
Outlook for 2014 In € million EBITDA 8,762 7,904 6,400 – 6,800 Operating 5,881 result 5,369 3,900 – 4,300 Recurrent 2,314 2,314 1,200 – 1,400 net income Dividend €1.00/share1 Payout ratio of 40% – 50% 2013 2013 2014e reported pro forma pro forma RWE Dea DCO1 RWE Dea DCO1 1 Based on the sale agreemen
Slide 5: 2014 Divisional outlook for the operating result unchanged
2014 Divisional outlook for the operating result unchanged € million 20131 2014 forecast versus 2013 Conventional Power Generation 1,384 Significantly below 2013 Supply/Distribution Networks Germany 1,626 Moderately above 2013 Supply Netherlands/Belgium 278 Significantly below 2013 Supply United Kin
Slide 6: Back-up Charts
Back-up Charts | i a |
Slide 7: Development of operating result by division
Development of operating result … … by division (-€430 million; -18%) Earnings in Conventional Power Generation under pressure due to € million declining generation margins Q1 20131 2,340 Conventional Earnings trend in our supply divisions -185 Power Generation suffered among other things from Suppl
Slide 8: Performance of the Conventional Power Generation Division
Performance of the Conventional Power Generation Division January – March: operating result: -25% (-€185 million) € million - Lower realised electricity generation spreads 744 - Closure of Tilbury and Didcot A power plants 559 + Efficiency improvements + Lower operating depreciation 20131 2014 Guida
Slide 9: RWE's forward hedging of conventional electricity production
RWE’s forward hedging of conventional electricity production (German, Dutch and UK portfolio) As of 31 March 2014 >30% >10% >40% >10% >50% >20% >50% >30% >60% >40% >70% >50% >80% >60% >80% >80% >90% >90% 2014 forward >30% >10% >40% >10% >40% >20% >50% >30% >60% >40% >60% >50% 2015 forward >30% >20%
Slide 10: Germany: Clean Dark and Spark Spreads
Germany: Clean Dark (CDS) and Spark Spreads (CSS) 2013 forward 2014 forward 2015 forward Ø 9.96 Ø 7.86 Ø 6.10 Ø -2.37 Ø -11.63 Ø -13.07 Trading year 2012 Trading year 2013 Trading year 2014 CDS Cal 2013–15 base load (€/MWh) CSS Cal 2013–15 peak load (€/MWh) (assumed thermal efficiency: 36%) (assumed
Slide 11: NL: Clean Dark and Spark Spreads
NL: Clean Dark (CDS) and Spark Spreads (CSS) 2013 forward 2014 forward1 2015 forward1 Ø 11.43 Ø 8.31 Ø 7.63 Ø -4.55 Ø -9.64 Ø -7.46 Trading year 2012 Trading year 2013 Trading year 2014 CDS Cal 2013–15 base load (€/MWh) CSS Cal 2013–15 base load (€/MWh) (assumed thermal efficiency: 37%) (assumed the
Slide 12: UK: Clean Dark and Spark Spreads
UK: Clean Dark (CDS) and Spark Spreads (CSS) 2013 forward 2014 forward1 2015 forward1 Ø 22.49 Ø 19.51 Ø 17.82 Ø 2.54 Ø 3.12 Ø 2.03 Trading year 2012 Trading year 2013 Trading year 2014 CDS Cal 2013–15 base load (€/MWh) CSS Cal 2013–15 base load (€/MWh) (assumed thermal efficiency: 36%) (assumed ther
Slide 13: Performance of the Supply/Distribution Networks Germany Division
Performance of the Supply/Distribution Networks Germany Division January – March: operating result: +10% (+€61 million) € million + Efficiency improvements 656 + Higher earnings from the disposal of grid assets 595 - Weather induced decline in gas earnings 2013 2014 Guidance for fiscal 2014: Moderat
Slide 14: Performance of the Supply Netherlands/Belgium Division (Essent)
Performance of the Supply Netherlands/Belgium Division (Essent) January – March: operating result: -58% (-€95 million) € million - Weather induced reduction in gas earnings 165 - Competition induced pressure on gas margins + Efficiency improvements 70 2013 2014 Guidance for fiscal 2014: Significantl
Slide 15: Performance of the Supply United Kingdom Division (RWE npower)
Performance of the Supply United Kingdom Division (RWE npower) January – March: operating result: -54% (-€150 million) € million - Significantly higher burdens from government programmes to promote energy savings by households 278 - Higher grid fees and commodity costs 128 - Earnings dilution from d
Slide 16: Performance of the Central Eastern and South Eastern Europe Division
Performance of the Central Eastern and South Eastern Europe Division January – March: operating result: -25% (-€97 million) € million - Disposal of NET4GAS (as of 2 August 2013) - Positive effects in 2013 from derivatives to hedge f/x risks 383 Czech Republic: 286 - Weather and competition induced r
Slide 17: Performance of the Renewables Division (RWE Innogy)
Performance of the Renewables Division (RWE Innogy) January – March: operating result: +9.0% (+€8 million) € million + Increased earnings contribution from growth investments + Higher utilisation of wind farms 97 89 - Impact from new renewables support scheme in Spain - Transfer of German biomass ac
Slide 18: Performance of the Trading/Gas Midstream Division
Performance of the Trading/Gas Midstream Division (RWE Supply & Trading) January – March: operating result: +€53 million € million + Commercial settlement with Gazprom on our long-term gas supply contract - Pressure on margins in gas storage business 6 -47 2013 2014 Guidance for fiscal 2014: Signifi
Slide 19: Reconciliation of (recurrent) net income
Reconciliation of (recurrent) net income € million Q1 2014 +/- EBITDA and the operating result mainly suffered from lower generation margins, negative EBITDA 2,589 -476 weather effects and the disposal of NET4GAS in 2013. Depreciation -679 +46 Financial result mainly impacted by Operating result 1,9
Slide 20: Cash flow statement and reconciliation of cash balance
Cash flow statement and reconciliation of cash balance January – March Change € million 2014 2013 (absolute) Funds from operations (FFO) 1,792 2,188 -396 Change in working capital -1,635 -2,125 490 Cash flows from operating activities 157 63 94 Capex on fixed assets1 -873 -760 -113 Free cash flow -7
Slide 21: Development of net debt
Development of net debt € billion Cash flows Capex on Dividends Desinvest- Change Others from property, ments/ in pension, including operating plant and deconsoli- nuclear, f/x effects activities equipment dations/ mining 35 and intangible capital provisions assets and measures financial assets +0.3
Slide 22: Financial liabilities and assets
Financial liabilities and assets (Excluding hybrid capital, as of 31 March 2014) Financial liabilities Financial assets Split of in € billion in € billion securities 25 8.1 10 7.5 0.5 18% 18.9 0.3 20 8 2.0 14.9 1.2 1.3 3.7 3.7 15 0.9 0.3 6 10 4 0.8 0.8 15.3 12.8 5 4.0 2 3.1 2.7 0.6 0.8 0.2 0.4 0.3 2
Slide 23: Capital market debt maturities and sources of financing
Capital market debt maturities and sources of financing Capital market debt maturities1 Strong sources of financing in € bn Fully committed syndicated loan For liquidity 2.5 20 (€4.0 bn up back-up to March 2019) €0.0 bn 2.0 16 1.5 12 Commercial paper $0.0 bn ($5.0 bn) (up to 1 year) 1.0 8 €0.0 bn (3
Slide 24: Capital market debt currency and interest exposure
Capital market debt currency and interest exposure (As of 31 March 2014) 13% 31% €18.0 bn11 €17.1 bn2 69% 87% € Interest rate fixing expiry > 1 year £ Interest rate fixing expiry < 1 year 1 Capital market debt = bonds of €14.3 bn and hybrids of €3.7 bn; split into currencies includes cross-currency
Slide 25: RWE's major investment projects
RWE’s major investment projects RWE Capex share (€ bn) 2013 2014 2015 2016 2017 2018 Conventional power plant new build programme (capex at 100% share) Hamm (hard coal, 1,528 MW) 77% 2.5 Units E D Eemshaven (hard coal/biomass, 1,554 MW) 100% 3.0 Units A B RWE Innogy major projects under construction
Slide 26: Always be informed about RWE
Always be informed about RWE … Follow us on twitter@RWE_IR and have a look at www.rwe.com/ir Calendar http://www.rwe.com/web/cms/en/110614/rwe/investor-relations/events/calendar/ Annual and Interim Reports http://www.rwe.com/web/cms/en/110822/rwe/investor-relations/reports/ Investor and Analyst Conf