Slide 1: H1 2019 Results presentation
H1 2019 Results presentation Investor and Analyst Conference Call 14 August 2019 Markus Krebber, Chief Financial Officer Gunhild Grieve, Head of Investor Relations
Slide 2: Disclaimer
Disclaimer This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promi
Slide 3: RWE raised outlook for FY19 after strong earnings in H1
RWE raised outlook for FY19 after strong earnings in H1 > Very good H1 for RWE on the back of an outstanding trading performance > Outlook for RWE increased; dividend target of €0.8 per share for FY 2019 confirmed > Conversion of preferred shares to common shares completed, preferred stock delisted;
Slide 4: Strong adjusted EBITDA of €1,372 million driven by extraordinary earnings from Supply & Trading
Strong adjusted EBITDA of €1,372 million driven by extraordinary earnings from Supply & Trading Group RWE stand-alone (€ million) 825 H1 2018 1,140 > Lignite & Nuclear: Earnings at previous year’s level as a result of higher realised margins despite lower +5 Lignite & Nuclear +5 generation volumes -
Slide 5: Lignite & Nuclear – earnings at comparable level to H1 2018 in spite of the effect from Hambach restriction
Lignite & Nuclear – earnings at comparable level to H1 2018 in spite of the effect from Hambach restriction Key financials H1 2019 versus H1 2018: Slightly higher realised generation margins € million H1 2019 H1 2018 change Lower production volumes, among others due to restrictions at Hambach mine a
Slide 6: European Power – full year guidance expected to end at the bottom of the range due to weak Q1
European Power – full year guidance expected to end at the bottom of the range due to weak Q1 Key financials H1 2019 versus H1 2018: Lower production volumes € million H1 2019 H1 2018 change Less earnings from commercial optimisation UK 62 99 -37 Absence of capacity payments due to suspension of UK
Slide 7: Slight improvement of hedged spread levels in 2020 - 2022
Slight improvement of hedged spread levels in 2020 - 2022 Expected positions and hedge status as of 30 June 2019 (including Hambach restrictions) Before any measures resulting from proposals of ‘Growth, Structural Change and Employment’ commission Outright Average hedge price 2019 – 2022 corresponds
Slide 8: Improvement of fuel spreads for Cal 2020 to 2022
Improvement of fuel spreads for Cal 2020 to 2022 Development of German fuel spreads1 8,00 6,00 4,00 €/MWh 2,00 0,00 -2,00 -4,00 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Months to delivery Cal18 Cal19 Cal20 Cal21 Cal22 1 Fuel spread defined as: P
Slide 9: Supply & Trading – after outstanding performance in H1, FY19 outlook increased
Supply & Trading – after outstanding performance in H1, FY19 outlook increased: significantly above €300 million Key financials H1 2019 versus H1 2018: Outstanding trading performance € million H1 2019 H1 2018 change Gas & LNG above previous year’s result Adj. EBITDA 434 101 +333 Absence of value ad
Slide 10: Adjusted net income for H1 2019 reaches €914 million
Adjusted net income for H1 2019 reaches €914 million RWE stand-alone H1 2018 H1 2019 (€ million) 1,140 Adj. EBITDA 1,372 > Adjusted EBITDA excludes non-operating result > Financial result adjusted for impact from lower -270 Adj. depreciation -323 discount rates for long-term provisions, adjustment o
Slide 11: High distributable cash flow mainly driven by strong adj. EBITDA and cyclical working capital development
High distributable cash flow mainly driven by strong adj. EBITDA and cyclical working capital development RWE stand-alone H1 2018 H1 2019 (€ million) 1,372 > Changes in provisions: Utilisation of CO2 provisions 1,140 Adj. EBITDA completed, whereas additions only halfway Change in provisions & -602 >
Slide 12: Increased net debt since year end mainly due to change in variation margins
Increased net debt since year end mainly due to change in variation margins Development of net debt (RWE stand-alone) (€ million) 2,280 138 2,418 -910 430 -39 1,987 379 402 4,667 Net debt First-time Net debt Distributable Dividend Financial Other Change in Change in Net debt 31 Dec 18 application of
Slide 13: RWE stand-alone – outlook for 2019 improved
RWE stand-alone – outlook for 2019 improved FY 2018 FY 2019e Positive Negative impact on earnings €1.4 bn - €1.5 bn Adj. EBITDA > Positive adjustment from €1.2bn - €1.5bn €1.7 bn -€0.6 bn Adj. depreciation > Slight increase among others due to implementation of IFRS 16 -€0.2 bn Adj. net financial re
Slide 14: Appendix
Powering. Reliable. Future. RWE
Slide 15: Reconciliation to adjusted net income
Reconciliation to adjusted net income RWE stand-alone H1 2019 H1 2018 change (€ million) Reported Adjustments Adjusted Adjusted Adjusted Adj. EBITDA 1,372 - 1,372 1,140 232 Depreciation -323 - -323 -270 -53 Adj. EBIT 1,049 - 1,049 870 179 Non-operating result -445 +445 - - - Financial result -216 +1
Slide 16: Income statement H1 2019
Income statement H1 2019 (€ million) RWE stand-alone RWE Group Revenue (including natural gas tax/electricity tax) 6,391 7,040 Natural gas tax/electricity tax -75 -75 Revenue 6,316 6,965 Other operating result 58 105 Cost of materials -5,336 -5,519 Staff costs -947 -1,040 Depreciation, amortisation
Slide 17: Balance sheet as at 30 June 2019
Balance sheet as at 30 June 2019 (€ million) RWE stand-alone RWE Group Assets Intangible assets 1,037 2,179 Property, plant and equipment 6,785 13,017 Investments accounted for using the equity method 750 1,516 Other financial assets1 16,044 404 Inventories 1,181 1,235 Financial receivables 5,086 2,
Slide 18: Net debt as at 30 June 2019
Net debt as at 30 June 2019 (€ million) RWE stand-alone RWE Group Cash and cash equivalents 2,888 3,265 Marketable securities 2,656 2,656 Other financial assets 5,066 2,614 of which: financial receivables against innogy 700 - Financial assets and receivables 10,610 8,535 Bonds, other notes payable,
Slide 19: Net debt of continuing operations increased by €3.3 billion
Net debt of continuing operations increased by €3.3 billion since year end as of negative free cash flow & IGH purchase Development of net debt (RWE Group) – continuing operations only 4.4 0.3 4.7 1.1 0.5 0.5 0.5 0.4 0.3 8.0 (€ billion) Net debt First-time Net debt Cash flows Capex on Dividends Chan
Slide 20: Power prices and commodities
Power prices and commodities Base load power prices – Germany, NL (1 year forward) Base load power prices – UK (1 year forward) €/MWh €/MWh 100 80 80 UK 60 NL 60 40 Germany 40 20 20 Aug'17 Aug'18 Aug'19 Aug'17 Aug'18 Aug'19 Coal prices – API2 Cal-ahead Gas prices – TTF Cal-ahead €/t Carbon prices -
Slide 21: Clean Dark and Spark Spreads – 2018 – 2020 forwards for Germany, UK and NL
Clean Dark (CDS) and Spark Spreads (CSS) – 2018 – 2020 forwards1 for Germany, UK and NL Germany UK2 Netherlands Cal18 Cal19 Cal20 Cal18 Cal19 Cal20 Cal18 Cal19 Cal20 €/MWh €/MWh Ø8.69 Ø7.03 Ø11.35 Ø7.67 Ø5.07 Ø4.73 Ø4.18 Ø3.92 Ø6.37 Ø5.93 Ø3.23 Ø1.07 Ø2.90 Ø4.68 Ø4.99 Ø-0.18 Ø4.16 Ø-0.56 CDS Cal 20
Slide 22: Your contacts @RWE Investor Relations
Your contacts @RWE Investor Relations Important Links Financial Calendar Annual and interim reports & statements 14 November 2019 http://www.rwe.com/ir/reports ADR programme available Interim statement on the first three quarters of 2019 Investor and analyst conferences 12 March 2020 http://www.rwe.
Slide 23: Powering. Reliable. Future.
Powering. Reliable. Future. RWE