Rwe Ag · XETR:RWE
Rwe — Q1 2011 Earnings Presentation
32 slides from Rwe's earnings presentation, May 12, 2011
Slide 1: Investor and Analyst Conference Call Q1 2011
Investor and Analyst Conference Call Q1 2011 Essen, 12 May 2011 Rolf Pohlig 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: 2011 outlook confirmed – future of German nuclear unclear
2011 outlook confirmed – future of German nuclear unclear Operating performance: EBITDA -4%, operating result -5%, recurrent net income -7% Net debt reduced to € 27.5 bn German nuclear moratorium for safety review Outlook for 2011 confirmed despite negative impact from 3-month nuclear moratorium RWE
Slide 4: Process for nuclear safety review in Germany
Process for nuclear safety review in Germany Level: Government Until May 31st (planned) June 15th (planned) recommendation of Gov/States: conclusions, Ethics Commission measures, law1 Level: BMU May 15th (planned) Federal ministry of environment BMU hands over RSK evaluation Level: RSK Until May 11t
Slide 5: RWE Group key performance indicators
RWE Group key performance indicators January – March Change € million 2011 2010 in % External revenue 15,754 15,267 +3.2 Cash flows from operating activities 2,284 1,509 +51.4 EBITDA 3,426 3,574 -4.1 Operating result 2,827 2,987 -5.4 Non-operating result 209 -244 - Financial result -372 -402 +7.5 Ta
Slide 6: Performance of the Germany Division (I) Power Generation
Performance of the Germany Division (I) Power Generation Business Area (RWE Power) January – March: operating result: +2.4% € million - Lower realised electricity prices but slightly higher volumes 1,173 1,201 (c. -€170 million) - Higher fuel costs (c. -€20 million) partly offset by lower costs asso
Slide 7: Forward selling by RWE Power in the German market
Forward selling1 by RWE Power in the German market (Base-load & peak-load forwards in €/MWh) 150 130 2011 forward 110 90 70 50 30 > 20% > 50% > 70% > 80% > 90% 150 130 2012 forward 110 90 70 50 30 > 10% > 25% > 30% > 35% > 50% > 70% 150 130 2013 forward 110 90 70 50 30 > 10% > 20% 01/01/2008 07/01/2
Slide 8: Performance of the Germany Division (II) Sales/Distribution Networks
Performance of the Germany Division (II) Sales/Distribution Networks Business Area January – March: operating result: -9.2% € million Sales - Lower gas sales volumes resulting from normalised weather conditions Distribution networks 655 595 - Negative volume effect due to normalised weather conditio
Slide 9: Performance of the Netherlands/Belgium Division (Essent)
Performance of the Netherlands/Belgium Division (Essent) January – March: operating result: -48% € million - Parts of gas midstream business now reported in Trading/Gas Midstream 281 - Lower gas margins due to normalised weather conditions - Lower electricity generation spreads 145 + Efficiency impr
Slide 10: Performance of the United Kingdom Division (RWE npower)
Performance of the United Kingdom Division (RWE npower) January – March: operating result: +80% € million + Cost reductions/efficiency improvements and positive f/x effects 409 Power generation: + First time contribution of Staythorpe CCGT 227 + Settlement of claims relating to major investment proj
Slide 11: Performance of the Central Eastern and South Eastern Europe Division
Performance of the Central Eastern and South Eastern Europe Division January – March: operating result: -0.7% € million + Positive f/x effects Czech Republic: 447 444 - Weather-induced lower gas volumes + Higher income in gas transport business - Hungary: Lower electricity retail margins and burden
Slide 12: Performance of the Renewables Division (RWE Innogy)
Performance of the Renewables Division (RWE Innogy) January – March: operating result: +127% € million 68 + Increased generation volumes (partly driven by our growth investment programme) and improved electricity prices 30 + Liquidated damages associated with the Greater Gabbard project - Upfront co
Slide 13: Performance of the Upstream Gas & Oil Division (RWE Dea)
Performance of the Upstream Gas & Oil Division (RWE Dea) January – March: operating result: +38% € million + Higher oil and gas prices + Higher oil production 176 - Lower gas production 128 - Higher production costs; increased royalties + Lower exploration expenditures 2010 2011 Guidance for fiscal
Slide 14: Performance of the Trading/Gas Midstream Division
Performance of the Trading/Gas Midstream Division (RWE Supply & Trading) January – March: operating result: -414% € million Trading - Negative development after market disturbance as a result of the events in Japan and Northern Africa 88 Supply - Burdens from oil-indexed gas contracts -276 + Parts o
Slide 15: Non-operating result
Non-operating result January – March Change € million 2011 2010 (absolute) Capital gains/losses 310 -3 +313 Impact of commodity derivatives on earnings -39 -443 +404 Restructuring, other -62 202 -264 Total 209 -244 +453 Capital gains/losses: Mainly from the sale of Thyssengas and our 24.6% stake in
Slide 16: Financial result
Financial result January – March Change € million 2011 2010 (absolute) Net interest -192 -199 +7 Interest accretion to non-current provisions -196 -218 +22 Other financial result 16 15 +1 Total -372 -402 +30 Net interest > No major changes to previous year Interest accretion to non-current provision
Slide 17: Cash flow statement
Cash flow statement January – March Change € million 2011 2010 (absolute) Funds from operations (FFO) 3,071 2,362 +709 Change in working capital -787 -853 +66 of which variation margins -177 173 -350 Cash flows from operating activities 2,284 1,509 +775 Minus capex on fixed assets -1,144 -1,175 +31
Slide 18: Outlook for 2011
Outlook for 2011 2010 2011 € million forecast EBITDA 10,256 circa -15% Operating result 7,681 circa -20% Recurrent net income 3,752 circa -30% Payout ratio of 50 – 60% Dividend € 3.50 of recurrent net income Capex on fixed assets €bn 6.4 circa 7 – 7.5 Net debt €bn 29.0 circa +1 RWE AG | Q1 Conferenc
Slide 19: Back-up
Back-up RWE AG | Q1 2011 Conference Call | 12 May 2011 19
Slide 20: RWE Group electricity production (by geographic regions)
RWE Group electricity production (by geographic regions) January – March Other Total Total in TWh Germany UK NL/BE Internat. 2011 2010 Lignite 17.5 1.5 19.0 18.5 Nuclear 12.2 12.2 11.3 Hard coal 9.4 3.8 1.6 0.1 14.9 16.6 thereof contracts 5.5 5.5 6.9 Gas 3.3 6.5 1.4 0.1 11.3 11.1 Renewable energies
Slide 21: RWE Group electricity sales volume (by geographic regions)
RWE Group electricity sales volume (by geographic regions) January – March Total Total in TWh Germany UK NL/BE Poland Hungary Other 2011 2010 Private and commercial 7.7 5.3 3.1 0.8 1.5 18.4 19.6 customers Industrial and corporate 13.5 7.9 2.9 1.0 1.3 0.2 26.8 26.8 customers Distributors 25.1 1.6 0.4
Slide 22: RWE Group gas sales volume (by geographic regions)
RWE Group gas sales volume (by geographic regions) January – March Czech Total Total in TWh Germany Rep. NL UK Other 2011 2010 Private and commercial 11.2 13.7 18.1 17.1 0.6 60.7 71.3 customers Industrial and corporate 11.9 5.9 18.5 0.8 4.2 41.3 49.8 customers Distributors 22.7 2.0 0.0 0.1 2.5 27.3
Slide 23: Germany: Clean Dark Spread versus hard coal and CO2 prices
Germany: Clean Dark Spread (CDS) versus hard coal and CO2 prices 100 25 2010 80 20 forward 60 15 40 10 20 5 0 0 2011 100 80 25 20 forward 60 15 40 10 20 5 0 0 2012 100 80 25 20 forward 60 15 40 10 20 5 0 0 2013 100 25 20 75 forward 15 50 10 25 5 0 0 01.01. 01.07. 01.01. 01.07. 01.01. 01.07. 01.01. 2
Slide 24: Germany: Clean Spark Spread versus natural gas and CO2 prices
Germany: Clean Spark Spread (CSS) versus natural gas and CO2 prices 40 40 2010 30 30 forward 20 20 10 10 0 0 2011 40 40 30 30 forward 20 20 10 10 0 0 2012 40 40 30 30 forward 20 20 10 10 0 0 2013 40 40 30 30 forward 20 20 10 10 0 0 01.01. 01.07. 01.01. 01.07. 01.01. 01.07. 01.01. 2009 2009 2010 2010
Slide 25: UK: Clean Dark Spread versus hard coal and CO2 prices
UK: Clean Dark Spread (CDS) versus hard coal and CO2 prices 100 25 2010 80 20 forward 60 15 40 10 20 5 0 0 2011 100 80 25 20 forward 60 15 40 10 20 5 0 0 2012 100 80 25 20 forward 60 15 40 10 20 5 0 0 2013 100 80 25 20 forward 60 15 40 10 20 5 0 0 01.01. 01.07. 01.01. 01.07. 01.01. 01.07. 01.01. 200
Slide 26: UK: Clean Spark Spread versus natural gas and CO2 prices
UK: Clean Spark Spread (CSS) versus natural gas and CO2 prices 40 20 2010 30 15 forward 20 10 10 5 0 0 2011 40 20 30 15 forward 20 10 10 5 0 0 2012 40 20 30 15 forward 20 10 10 5 0 0 2013 40 20 30 15 forward 20 10 10 5 0 0 01.01. 01.07. 01.01. 01.07. 01.01. 01.07. 01.01. 2009 2009 2010 2010 2011 201
Slide 27: Development of TTF gas price and brent oil price since January 2009
Development of TTF gas price and brent oil price since January 2009 (EUR/MWh) 40 5 2011 30 0 20 -5 10 -10 0 -15 40 5 2012 30 0 20 -5 10 -10 0 -15 Jan 2009 Apr 2009 Jul 2009 Oct 2009 Jan 2010 Apr 2010 Jul 2010 Oct 2010 Jan 2011 May 2011 Spread Crude Brent (in EUR, normalised to TTF) TTF forward Relat
Slide 28: Development of net debt
Development of net debt € billion Capex Dividends Acquisitions/ Cash flows Others Change disposals/ from including in pension, (de)consoli- operating f/x effects nuclear, dations activities mining provisions 32 +1.1 +0.1 -0.5 -2.3 29.0 28 -0.1 +0.2 27.5 24 0 Net debt Net debt Dec. 31, 2010 March 31,
Slide 29: Financial liabilities and assets
Financial liabilities and assets (excluding hybrid capital, as of March 31, 2011) Financial liabilities Financial assets Split of in billion Euros in billion Euros securities 25 12 15% 19.8 10 9.6 20 9.1 2,0 1,3 15.9 0,9 1,1 0,7 8 15 0,9 0,3 3,6 6 3,6 10 0,7 16,2 4 0,7 14,7 5 3.9 0,6 2 3,7 4,0 1,1 0
Slide 30: 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 for liquidity syndicated loan 2,5 20 back-up (€ 4.0 bn up to Nov. 2015) € 0.0 bn 2,0 16 1,5 12 Commercial paper $ 0.3 bn ($ 5.0 bn) (up to 1 year) 1,0 8 € 0.2 b
Slide 31: Capital market debt currency and interest exposure
Capital market debt currency and interest exposure (as of 31.03.2011) 19% 28% € 17.9 bn1 € 16.7 bn2 72% 81% € £ Interest rate fixing expiry > 1 year Interest rate fixing expiry < 1 year 1 Capital market debt = bonds of € 16.2 bn and hybrid of € 1.75 bn; including cross-currency swaps 2 Capital marke
Slide 32: Always be informed about RWE…
Always be informed about RWE… To always be up-to-date, please have a look at our website www.rwe.com Calendar http://www.rwe.com/web/cms/en/110614/rwe/investor-relations/calendar/ Annual and Interim Reports http://www.rwe.com/web/cms/en/110822/rwe/investor-relations/financial-reports/ Facts &