Rwe Ag · XETR:RWE
Rwe — RWE npower — Investor Presentation (April 2013)
18 slides from Rwe's investor presentation, Apr 23, 2013
Slide 1: RWE npower Investor Meeting
RWE npower Investor Meeting Paul Massara, CEO RWE npower 23 April 2013
Slide 2: Retail business aligned with core customer segments after Generation split
After the Generation split, the retail business has been fully aligned with our core customer segments… Executive Committee Business Units 11 2 3 4 Domestic SME I&C Energy Markets Markets Markets Services Sales Portfolio Management Regulation and External Affairs Strategy Support Finance Functions H
Slide 3: RWE npower improved its operating result by €121m in 2012
RWE npower has improved its operating result by €121m in 2012 npower operating result €286m Retail €480m 480 €359m 357 €194m Generation 2011 2012 npower has performed well - operating result is 34% higher than 2011 RWE npower PAGE 3
Slide 4: Retail business building a profitable business across all customer segments
RWE npower’s retail business has started to build a profitable business across all of its customer segments B2C and B2B EBITDA retail margin evolution - Source: Ofgem CSS accounts 6 4.5% 4 2.8% 2 1.0% 0 -2.1% -0.5% -2 -4.5% -4 B2B EBITDA margins % -6 B2C EBITDA margins % 2009 2010 2011 2012 Despite
Slide 5: All suppliers face a challenging environment
All suppliers face a challenging environment due to changing socio-economic & regulatory pressures Market Challenges Socio-economic Regulatory Intervention • Media pressure • Retail Market Review • „Political Football“ • Tariff Simplification • Rising prices • Bill simplification • Slower economy •
Slide 6: The impact of these challenges are also felt by our customers
The impact of these challenges are also felt by our customers Average Domestic Customer Dual Fuel Bill, £ 1,673 1,526 1,162 1,103 Government Influenced Policies and Tax Network Costs Energy Energy Costs Costs Supplier Costs Supplier Influenced 2007 2011 2013 2015 Source: RWEn Internal projections of
Slide 7: The challenge is even more acute for us
However, we acknowledge the challenge is even more acute for us… Example: Domestic opex per account vs Which? Customer satisfaction scores 120 Improve quality and Reduce costs while decrease costs maintaining quality Opex per account Best in class 0 Satisfied Customers 30% 60% … and our response WIL
Slide 8: How are we going to get it right?
How are we going to get it right? RWE npower PAGE 8
Slide 9: Customer transformation programme across the entire business
Between 2013 and 2015 we are undergoing a customer transformation programme across our entire business 2013 CTP will embed the core competencies to grow our business in a sustainable way Leadership & Operational End to End Workstream Direction Excellence Creating a high performance, E2E customer jou
Slide 10: B2C focus: £100m cost base reduction and building trust
B2C Focus: on achieving £100m cost base reduction and improving customer numbers through the build up of ‘trust’ Initiatives and Expected Strategic Priorities Benefits Initiatives and Expected Benefits Customer transformation Improved customer experience and Programme / Atlas processes delivered t
Slide 11: B2B SME: re-balancing portfolio towards higher value customers
B2B SME: Focus on re-balancing portfolio towards higher value customers & reducing debt Initiatives and Expected Strategic Priorities Benefits Initiatives and Expected Benefits Re-positioning of SME Growth in average consumption by 20% and portfolio to increase share in high volume retention by 1.
Slide 12: I&C: retention of key power accounts and building gas capabilities
I&C: Focus on retention of key power accounts and building up capabilities to compete in Gas Initiatives and Expected Strategic Priorities Benefits Initiatives and Expected Benefits Retention of key power Increased understanding of customer contracts and identification universe and where value is
Slide 13: By 2015 we'll become the most trusted provider of energy solutions
“BY 2015 WE’LL BECOME THE MOST TRUSTED AND HIGH PERFORMING PROVIDER OF ENERGY SOLUTIONS TO OUR CUSTOMERS’ HOMES, BUSINESSES AND COMMUNITIES ” RWE npower PAGE 13
Slide 14: Strategic vision promotes sustainable energy
RWE npower’s strategic vision promotes sustainable energy, through optimal balance between people, planet & profits We will be known as the company that… > Delivers on its promises to customers, employees, shareholders and government > Provides energy at a fair price but with exceptional service >
Slide 15: Our strategic response will deliver sustainable growth
Our strategic response will go beyond previous initiatives, delivering sustainable growth for RWE npower 2009 2010 – 2013 2013 – 2015 2013 – 2018+ npower Fit For Project CTP strategic Future Strand vision Cost Reduction Organisational Change Investing in Our People Performance Cult
Slide 16: Outlook performance of RWE npower for 2013
Outlook Performance of RWE npower for 2013 Guidance for fiscal year 2013*: above last year + Efficiency improvements €286 + Growth of business with commercial customers - Higher burdens from governmental programmes 2012 2013e pro forma * 2012 results are pro forma result due to the change in the r
Slide 17: Outlook post-2013
Outlook post-2013 Our aim is to become Number 1 in customer experience of the energy industry’s biggest players by end 2015 RWE npower is fully included in the ‘RWE 2015’ programme to deliver efficiencies across the Group Customer Transformation Programme – enduring programme and shift in cultur
Slide 18: Q&A
Q&A nPower 17 Ae