Slide 1: Investor and Analyst Q1 2016 Conference Call
Investor and Analyst Q1 2016 Conference Call Essen, 12 May 2016 Bernhard Günther Stephan Lowis Chief Financial Vice President Officer Investor Relations and Group Finance
Slide 2: Notice
Notice > This document contains certain forward-looking statements within the meaning of the U.S. federal securities laws. Especially all of the following statements: Projections of revenues, income, earnings per share, capital expenditures, dividends, capital structure or other financial items, sta
Slide 3: Main messages for Q1 2016
Main messages for Q1 2016 Financial performance for the first quarter: EBITDA +4.9%, operating result +7.1%, adjusted net income -2.3% Earnings outlook for 2016 confirmed Higher net debt due to seasonal negative cash flow and higher pension provisions Preparation for NewCo IPO well on track No conse
Slide 4: Development of operating result in Q1 2016
Development of operating result in Q1 2016 … by division (+€116 million; +7.1%) Earnings in Conventional Power Generation under pressure mainly due to declining generation € million margins. Q1 2015 1,630 Renewables: Among others full availability of new Conventional offshore wind farms partly offse
Slide 5: Development of the earning figures in Q1 2016
Development of the earning figures in Q1 2016 +/- vs. Non-operating result: Positive impact € billion Q1 2016 Q1 2015 from timing differences of derivatives and absence of provision for legal risks EBITDA 2.3 +0.1 in 2015; impairment on German gas Depreciation -0.6 +0.0 storage assets. Financial res
Slide 6: Development of cash flows from operating activities
Development of cash flows from operating activities Strong decline in cash flows1 driven by higher variation margins € billion -0.6 -0.3 -0.2 -0.3 -0.7 -0.3 +0.3 +0.1 -2.0 CFOA1 Higher Higher Other Higher Accounts Increased Other CFOA1 Q1 2015 tax variation variation payable/ tax Q1 2016 margins mar
Slide 7: Development of net debt
Development of net debt Higher net debt due to negative cash flow and interest driven higher pension provisions € billion Cash flows Capex on Dividends Divestments Change Others from opera- property, plant in pension, including ting activities and equipment nuclear, f/x effects and intangible mining
Slide 8: Outlook for 2016 confirmed
Outlook for 2016 confirmed 2015 reported 2016e1 € million EBITDA 7,017 5,200 – 5,500 Operating 3,837 2,800 – 3,100 result Adjusted 1,125 500 – 700 net income Dividend2 Common shares: - Oriented towards growth opportunities, indebtedness and Preferred shares: €0.13 earnings situation. 1 The outlook a
Slide 9: 2016 divisional outlook for the operating result
2016 divisional outlook for the operating result € million 2015 pro-forma1 2016 forecast2 Conventional Power Generation3 596 Significantly below 2015 Renewables 488 Significantly below 2015 Trading/Gas Midstream 156 Significantly above 2015 Grids/Participations/Other 1,955 Significantly below 2015 S
Slide 10: Back-up charts
Back-up charts The energy to lead
Slide 11: Performance of the Conventional Power Generation Division
Performance of the Conventional Power Generation Division January – March: operating result: -20% (-€87million) € million - Lower realised electricity generation spreads 441 354 + Efficiency improvements and lower depreciation + Income from sale of real estate 2015 2016 Pro-forma Outlook for fiscal
Slide 12: 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 2016 >30% >20% >40% >10% >40% >10% >60% >10% >60% >20% >80% >40% >90% >60% >90% >80% >90% >90% 2016 forward 31 Dec. 2013 31 March 2014 30 June 2014 30 Sep. 2014 31 Dec. 2014 31 March 2015 30
Slide 13: Clean Dark and Spark Spreads 2015-2017
Clean Dark (CDS) and Spark Spreads (CSS) – 2015 - 2017 (forwards for Germany, UK and Netherlands1) Germany UK2 Netherlands Cal15 Cal16 Cal17 Cal15 Cal16 Cal17 Cal15 Cal16 Cal17 €/MWh €/MWh 20 20 Ø16.97 15 15 Ø10.52 Ø11.21 10 10 Ø9.18 Ø6.63 Ø5.80 Ø7.05 5 Ø5.09 5 Ø3.65 Ø4.83 Ø 3.69 Ø4.02 0 0 Ø -1.27 Ø
Slide 14: Performance of the Renewables Division
Performance of the Renewables Division January – March: operating result: +0.7% (+€1 million) € million + Increased earnings contribution from Nordsee Ost and Gwynt y Môr offshore wind farm 153 154 + Book gain from sale of run-of-river plants in Germany - Book gain from disposal of grid infrastructu
Slide 15: Performance of the Trading/Gas Midstream Division
Performance of the Trading/Gas Midstream Division January – March: operating result: +€159 million € million Trading: 166 + Significantly improved trading activities after below average earnings 7 contribution in 2015 Supply: 2015 2016 Still suffering from out of the money long-term gas storage cont
Slide 16: Performance of Grids/Participations/Other Division
Performance of Grids/Participations/Other Division January – March: operating result: +1.4% (+€8 million) € million + Revaluation of participation in WestEnergie + Higher earnings from the disposal of grid assets in Germany 575 583 + Positive weather effect in CZ gas business - Increased costs to op
Slide 17: Performance of the Supply Division I
Performance of the Supply Division I January – March: operating result: -2.2% (-12 million) € million Germany: 555 543 - Higher procurement costs (network usage fees, taxes and levies) could only partly be passed on 2015 2016 Netherlands: Pro-forma + Improved earnings in business with household cust
Slide 18: Performance of the Supply Division II
Performance of the Supply Division II Outlook for fiscal 2016: moderately below previous year € million East: 830 - VSE: One-off effect from asset revaluation linked to the full consolidation in 2015 (-€42 million) + 2015 2016e UK: Pro-forma + Improved earnings from operating activities - Burdens
Slide 19: Financial liabilities and assets
Financial liabilities and assets (Excluding hybrid capital as of 31 March 2016) Financial liabilities Financial assets Split of € billion € billion securities 22.4 20 20 4.7 16.1 2.4 0.9 16% 15 1.3 0.6 15 12.8 13.2 0.9 0.7 10 10 4.1 4.1 13.9 14.7 0.7 0.7 6.3 5 5 3.8 7.3 7.5 1.1 0.6 0.2 0.4 0.8 0.2 0
Slide 20: Capital market debt maturities and sources of financing
Capital market debt maturities and sources of financing Capital market debt maturities1 Sources of funding1 € billion 2,0 2.0 18,0 18.0 Syndicated loan facility €0.0bn out of €4.0bn (until March 2021) (Back up liquidity) 1,5 1.5 13,5 13.5 Commercial papers $3.5bn out of $5.0bn 1,0 1.0 9,0 9.0 (up to
Slide 21: Capital market debt: Currency and interest exposure
Capital market debt: Currency and interest exposure (as of 31 March 2016) Currency exposure1 Interest exposure2 1 22% 37% 63% 78% € Fixed interest payments £ Floating interest payments (fixing expiry ≤ 1 year) 1 Capital market debt (senior bonds and hybrids) including cross-currency swaps. 2 Capital
Slide 22: Keep up with RWE …
Keep up with RWE … Follow us on twitter.com/RWE_IR and have a look at www.rwe.com/ir Important links Financial Calendar Annual and Interim Reports 12 May 2016 http://www.rwe.com/ir/reports/ Interim Report on the first quarter of 2016 Investor and Analyst Conferences 11 August 2016 http://www.rwe.com
Slide 23: RWE Investor Relations – contacts
RWE Investor Relations – contacts Contacts for Institutional Investors & Financial Analysts Dr. Stephan Lowis Martin Vahlbrock Gunhild Grieve Dr. Holger Perlwitz Vice President Investor Relations Tel.: +49 201 12-15055 Tel.: +44 207 015-5459 Tel.: +49 201 12-15141 and Group Finance martin.vahlbrock@