Uniper Se · XETR:UN0

Uniper — FY2016 Earnings Presentation

41 slides from Uniper's earnings presentation, Mar 9, 2017

  1. Slide 1: 2016 Full year results

    2016 Full year results Klaus Schäfer – CEO Christopher Delbrück – CFO 09 March 2017

  2. Slide 2: Content

    Content I. Highlights of 2016 – Market development and Uniper Action Plan Klaus Schäfer – CEO II. Financial results 2016 and outlook 2017 Christopher Delbrück – CFO III. Appendix Uniper SE, Presentation FY 2016, 09.03.2017

  3. Slide 3: Agenda

    Agenda I. Highlights of 2016 – Market development and Uniper Action Plan Klaus Schäfer – CEO II. Financial results 2016 and outlook 2017 Christopher Delbrück – CFO Uniper SE, Presentation FY 2016, 09.03.2017

  4. Slide 4: Security of supply issue back on the radar

    Security of supply issue back on the radar Spot power prices Hydro capacity level (Nordic) Key highlights £/MWh €/MWh TWh % 180 180 120.000 30% Security of supply more 120 challenging 140 140 90.000 15% 90  Electricity prices very volatile with 100 100 60.000 60 0% large spikes  European gas reser

  5. Slide 5: European governments increasingly prepared to reward security of supply

    European governments increasingly prepared to reward security of supply Capacity market and strategic UK capacity market auctions Key highlights reserve schemes GW £/kW Strategic reserve schemes 8 24  German TSO secures Uniper plants 6 18 in southern Germany for the winter reserve – remuneration re

  6. Slide 6: Uniper in delivery mode – 2016 targets reached

    Uniper in delivery mode – 2016 targets reached Uniper EBITDA 2016 Key highlights Successful listing €bn  Strong stock price performance  Debut in the MDAX via fast entry Guidancee 2.2 2.1 Range EBITDA target reached  Group EBITDA in the upper third of the guided range 1.9  Strong earnings contri

  7. Slide 7: Action Plan progressing well

    Action Plan progressing well Costs Cash Portfolio Controllable costs Cash effective investments Evaluation approach €bn €bn 2.3 1.1 1.9 0.8 2015A 2018E 2015A 2016A Maintenance Growth Costs down Capex down Leverage target achieved  Implementation of savings program  Capex shows considerable positiv

  8. Slide 8: Yuzhno-Russkoye disposal – attractive transaction

    Yuzhno-Russkoye disposal – attractive transaction Transaction evaluation Financial impact  Significant END/EBITDA Business risk profile strengthened due to improvement lower cluster risk in Russia  Currently no material effects expected Significant improvement of debt factor for Q1 financials (END

  9. Slide 9: Cost reduction projects on track

    Cost reduction projects on track Delivery in 2016 Plans for 2017 Key management decisions Key management tasks  New action plan established  Negotiation of specific HR costs  Savings targets in place ongoing  Existing restructuring programs  Finalization of reconciliation of pushed ahead intere

  10. Slide 10: Strong decrease of cash effective investments based on optimized maintenance approach

    Strong decrease of cash effective investments based on optimized maintenance approach Cash effective investments by segment 2016 Maintenance and growth investments €bn €bn 1.1 -28% International Power 0.4 0.8 0.2 0.4 Global 0.7 0.1 0.5 0.4 Commodities European Generation 2015A 2016A Maintenance / Re

  11. Slide 11: Growth capex – strong focus on finalization of large legacy growth projects

    Growth capex – strong focus on finalization of large legacy growth projects Datteln IV coal plant – timeline Berezovskaya III plant repair – timeline Final permission Final construction Boiler Reconstruction received / outdoor facilities reinforcement starting Technical Start of test Expected Disman

  12. Slide 12: Strongly growing share of non-wholesale earnings in the medium term

    Strongly growing share of non-wholesale earnings in the medium term Indicative EBITDA split Major trends in Uniper’s business mix  Legacy growth projects with important non-wholesale Non- contribution Wholesale  Increasing capacity (market) payments in Europe and Russia 2016A1  Wholesale earnings

  13. Slide 13: The Uniper Story – value play and base dividend with optionality

    The Uniper Story – value play and base dividend with optionality Uniper Portfolio Potential Performance Attractive assets across Gearing to commodity price Commitment and track record Europe/ Russia and recovery and market of cost excellence and cash diversified earning sources transformation flow o

  14. Slide 14: Agenda

    Agenda I. Highlights of 2016 – Market development and Uniper Action Plan Klaus Schäfer – CEO II. Financial results 2016 and outlook 2017 Christopher Delbrück – CFO Uniper SE, Presentation FY 2016, 09.03.2017

  15. Slide 15: Solid results in 2016

    Solid results in 2016 Adj. EBIT(DA) Economic net debt Key highlights €bn €bn 2.1 Adj. EBIT(DA) strongly up  Driven by Gazprom long-term contract (LTC) settlement 1.7 and strong gas optimization results … 4.7  … more than offsetting impact from lower achieved 4.2 power prices in European Generation

  16. Slide 16: Group EBIT(DA) driven by outstanding performance of Global Commodities in 2016

    Group EBIT(DA) driven by outstanding performance of Global Commodities in 2016 Adj. EBITDA development by segment 2016 Highlights €m European Generation +1,007 +3  Lower achieved prices on outright fleet - 134 and provisioning for restructuring and for Swedish nuclear asset retirement - 471 2,122 1

  17. Slide 17: European Generation – Mainly impacted by lower power prices

    European Generation – Mainly impacted by lower power prices Adj. EBIT development by sub-segment 2016 Highlights €m Hydro - 380  Significantly lower power prices and negative volume effect based on dry period in Sweden 506 - 196 +20  Provisioning for restructuring program - 152 burdens - 50 126 20

  18. Slide 18: Global Commodities – Benefits from significant gas earnings

    Global Commodities – Benefits from significant gas earnings Adj. EBIT development by sub-segment 2016 Highlights TBU €m Gas + 1,065  Gazprom LTC agreement +990 +248 triggered release of provisions, - 102 - 34 portfolio significantly de-risked 1.327  Strong gas optimization gains based on volatile

  19. Slide 19: International Power – Impacted by Berezovskaya accident

    International Power – Impacted by Berezovskaya accident Adj. EBIT development by sub-segment 2016 Highlights TBU €m -130 International Power  Stable underlying business in a favorable regulated market 236 environment - 128 -2 106 Russia  Earnings decline in Russia exclusively due to reduction of t

  20. Slide 20: High EBITDA to OCF conversion due to strong working capital improvement

    High EBITDA to OCF conversion due to strong working capital improvement EBITDA to operating cash flow reconciliation €bn +0.5 +1.4 -0.1 0.0 -0.2 2.4 2.1 2.2 -1.5 EBITDA Non-cash Provision Changes in Payments OCFbIT Interest Tax OCF 2016A effective utilization working related to 2016A payments paymen

  21. Slide 21: Economic net debt benefits from strong OCF and one-off effects prior to listing

    Economic net debt benefits from strong OCF and one-off effects prior to listing €bn 6.7 1.0 1.0 0.8 0.8 -1.2 4.7 4.7 - 0.3 +0.4 4.2 +0.8 0.0 1.0 1,0 -2.2 0.8 0,8 4.9 4.9 2.4 AROs 1 Pension Net financial position 2 Economic Divestments Capital raise OCF Capex Pension Other effects Economic Pro-forma

  22. Slide 22: 2017 EBIT(DA) Outlook

    2017 EBIT(DA) Outlook EBIT EBITDA Key considerations TBU €bn 1.37 €bn 2.1 1.2 1.9 European Generation 1.7  Further decrease of achieved prices 0.80 1.6 0.9 for outright fleet  Swedish hydro and nuclear tax reduction 2015A 2016A 2017E 2015A 2016A 2017E  UK, France capacity payments  Lapse of rest

  23. Slide 23: Provision utilization with a strongly declining trend in the coming years

    Provision utilization with a strongly declining trend in the coming years Key provision utilization items Expected development Key highlights TBU in 2017 (€bn) going forward 2016 key provision utilization items  Predominantly driven by gas midstream business due to Gazprom Total ~€0.7 LTC agreement

  24. Slide 24: Dividend – policy confirmed

    Dividend – policy confirmed Significant growth for 2017 foreseen Adjusted Funds from Operations (Adj. FFO)1 Key considerations TBU Proposal 2016  0.55 €/share will be proposed to Annual – Maintenance / replacement investments General Meeting on 08 June 2017 Free Cash from Operations (FCfO) Outlook

  25. Slide 25: Attractive perspective for dividend key performance indicator beyond 2017

    Attractive perspective for dividend key performance indicator beyond 2017 Upsides for dividend Beyond 2017 Challenges for dividend Beyond 2017 Cost cutting initiatives Commodity prices Berezovskaya III and Datteln IV plant Disposals commissioning Capacity market regimes in UK and France; tax relief

  26. Slide 26: Agenda III. Appendix

    Agenda III. Appendix Uniper SE, Presentation FY 2016, 09.03.2017

  27. Slide 27: Power prices and commodities

    Power prices and commodities Germany – Baseload power 2018 Germany – CDS, CSS 2018 Gas Europe – summer/winter spread €/MWh $/ton €/MWh €/MWh 35 75 10 2,0 30 60 0 1,5 25 45 -10 1,0 20 15 30 -20 0,5 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jan-15 Jul-15 Jan-16 Jul-16 Jan-1

  28. Slide 28: Hedging outright power – Germany and Nordic

    Hedging outright power – Germany and Nordic Outright position – baseload power price Key highlights TBU  Outright power exposure hedged €/MWh above forward prices for 2016 and >80% >80% >80% >80% 2017 >80% >90% >80% >40%  Outright power for 2018 hedged at 45 recent forward price levels  Prudent h

  29. Slide 29: Maintenance capex – strict optimization in the coming years

    Maintenance capex – strict optimization in the coming years Value-driven maintenance capex Major drivers Load oriented approach  Lower sustainable investment Load  Switch from standard periods to load oriented oriented maintenance investment HSSE importance Cash and  Security for staff comes firs

  30. Slide 30: Uniper Group – Adjusted EBIT(DA) by segment

    Uniper Group – Adjusted EBIT(DA) by segment Adj. EBITDA €m FY 2016 FY 2015 % European Generation 654 1,125 -41.9 Global Commodities 1,456 449 224.3 International Power 201 335 -40.0 Admin / Consolidation -189 -192 1.6 Total 2,122 1,717 +23.6 Adj. EBIT €m FY 2016 FY 2015 % European Generation 126 506

  31. Slide 31: Uniper Group – Adjusted EBIT(DA) by sub-segment

    Uniper Group – Adjusted EBIT(DA) by sub-segment Adj. EBITDA and EBIT FY 2016 FY 2015 FY 2016 FY2015 €m Adj. EBITDA Adj. EBITDA Adj. EBIT Adj. EBIT European Generation Hydro 255 446 193 389 Nuclear 42 230 -16 137 Fossil 351 455 -39 14 Other/ Cons. 6 -5 -12 -34 Subtotal 654 1,125 126 506 Global Commod

  32. Slide 32: Uniper SE and subsidiaries – Key P&L items at a glance

    Uniper SE and subsidiaries – Key P&L items at a glance Key P&L items1 €m FY 2016 FY 2015 Sales 67,788 92,115 Adjusted EBITDA 2,122 1,717 Economic depreciation and amortization / reversals -760 -916 Adjusted EBIT 1,362 801 Non-operating adjustments -5,325 -4,210 EBIT -3,963 -3,409 Net interest income

  33. Slide 33: Uniper SE and subsidiaries – Details on non-operating adjustments

    Uniper SE and subsidiaries – Details on non-operating adjustments Non-operating adjustments1 €m FY 2016 FY 2015 Net book gains / losses 522 38 Fair value measurement of derivative financial instruments -1,636 511 Restructuring / cost management expenses1 -344 -137 Non-operating impairment charges /

  34. Slide 34: Items below Adjusted EBIT significantly impacted by one-off effects

    Items below Adjusted EBIT significantly impacted by one-off effects Reconciliation Adj. EBIT to Net income €m 1,362 -178 -325 -20 -1,630 +1,350 -3,217 +528 +45 -237 -117 - 3,992 Adj. Interest Tax Minorities Derivatives Impairments1 Nord Real estate Interest Other Taxes on Net EBIT and provision Stre

  35. Slide 35: Consolidated balance sheet (1/2)

    Uniper SE and subsidiaries – Consolidated balance sheet (1/2) Balance sheet of the Uniper Group – assets €m 31 Dec 2016 31 Dec 2015 Goodwill 2,701 2,555 Intangible assets 2,121 2,159 Property, plant and equipment 11,700 14,297 Companies accounted for under the equity method 827 1,136 Other financial

  36. Slide 36: Consolidated balance sheet (2/2)

    Uniper SE and subsidiaries – Consolidated balance sheet (2/2) Balance sheet of the Uniper Group – equity and liabilities €m 31 Dec 2016 31 Dec 2015 Capital stock 622 – Additional paid-in capital 10,825 – Retained earnings 4,156 18,684 Accumulated other comprehensive income -3,382 -4,223 Equity attri

  37. Slide 37: Uniper SE and subsidiaries – Net financial position

    Uniper SE and subsidiaries – Net financial position Net financial position of the Uniper Group €m 31 Dec 2016 31 Dec 2015 Liquid funds 341 360 Non-current securities 160 189 Financial receivables from consolidated group companies (< 3 months) – 6,971 Financial receivables from consolidated group com

  38. Slide 38: Consolidated statement of cash flows

    Uniper SE and subsidiaries – Consolidated statement of cash flows Statement of cash flows of the Uniper Group €m FY 2016 FY 2015 Net income / loss -3,234 -3,757 Depreciation, amortization and impairment of intangibles / property, plant, equipment 4,135 5,357 Changes in provisions 11 1,388 Changes in

  39. Slide 39: Uniper Investor Relations – Contact your IR team

    Uniper Investor Relations – Contact your IR team Uniper SE Udo Giegerich Marc Koebernick Investor Relations Executive Vice President Head of Investor Relations (SVP) E.ON-Platz 1 Group Finance & Investor Relations +49 211 4579 4489 40479 Duesseldorf udo.giegerich@uniper.energy marc.koebernick@uniper

  40. Slide 40: Financial calendar & further information

    Financial calendar & further information Financial calendar 09 May 2017 Quaterly Statement January – March 2017 08 June 2017 2017 Annual Shareholders Meeting (Grugahalle, Essen) 08 August 2017 Interim Report January – June 2017 07 November 2017 Quaterly Statement January – September 2017 Further inf

  41. Slide 41: Disclaimer

    Disclaimer This document and the presentation to which it relates contains information relating to Uniper SE, ("Uniper" or the "Company") that must not be relied upon for any purpose and may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for

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