Rwe Ag · XETR:RWE
Rwe — Q1-Q3 2005 Earnings Presentation
24 slides from Rwe's earnings presentation, Nov 16, 2005
Slide 1: Report on the First Three Quarters of Fiscal Year 2005
Report on the First Three Quarters of Fiscal Year 2005 Essen, November 16, 2005 Klaus Sturany Chief Financial Officer RWE AG Analyst and Investor Conference, H1 2005 | August 11, 2005
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: Highlights of Q1-Q3 2005
Highlights of Q1-Q3 2005 Performance operating result +4%; adjusted for consolidation and f/x effects +9% net profit increased 5% Cost Cutting € 140 million achieved out of the targeted € 210 million p.a. for 2005 Net financial debt net financial debt reduced to € 10.8 bn due to strong free
Slide 4: RWE group results Q1-Q3 2005
RWE group results Q1-Q3 2005 January – September change € million 2005 2004 in % EBITDA 6,147 6,213 -1.1 Operating result 4,656 4,464 +4.3 Non-operating result -106 296 -135.8 Financial result -1,532 -1,930 +20.6 Income before tax 3,018 2,830 +6.6 Tax -1,071 -992 -8.0 Income after tax 1,947 1,838 +5
Slide 5: Divisional performance
Divisional performance (in € million) Operating Result EBITDA January – September 2005 2004 Change 2005 2004 Change RWE Power 1,676 1,351 +24.1 2,145 1,880 +14.1 Power Generation 1,364 1,070 +27.5 1,715 1,454 +18.0 RWE Dea 312 281 +11.0 430 426 +0.9 RWE Energy 1,871 1,739 +7.6 2,346 2,207 +6.3 Regio
Slide 6: Non-operating result
Non-operating result January – September change € million 2005 2004 (absolute) Capital gains 346 709 -363 Impairment losses -55 -292 237 Restructuring / others -397 -121 -276 Total* -106 296 -402 * For calculating recurrent net income the non-operating result (minus a 39% lump-sum tax on restructuri
Slide 7: Financial result
Financial result January – September change € million 2005 2004 in % Net interest result -692 -909 +23.9 Interest accretion to long-term provisions -926 -979 +5.4 Other financial result 86 -42 +304.8 Total -1,532 -1,930 +20.6 77 Conference call, Q3 2005 | November 16, 2005
Slide 8: RWE cash flow statement
RWE cash flow statement January – September change € million 2005 2004 (absolute) Income after tax 1,947 1,838 +109 Depreciation, amortisation, impairment losses 2,203 2,594 -391 and writebacks Increase / decrease in provisions -145 -93 -52 Change in deferred taxes 272 379 -107 Disposal gains -498 -
Slide 9: Development of net financial debt
Development of net financial debt (debt with positive prefix, cash with negative prefix) € billion Cash flows Fair value Currency from of debt translation acquisitions/ operating related financial Capex Dividends effect disposals activities others derivatives +0.8 -0.4 -4.4 16 +1.0 +2.2 14 12.4 12 -
Slide 10: Outlook for 2005
Outlook for 2005 Operating result 20041 2005 € million forecast2 RWE Power (incl. RWE Trading) 1,846 RWE Energy 2,192 RWE npower 604 4 RWE Thames Water 1,389 Others -55 3 Total operating result 5,976 3 EBITDA 8,400 1 Exchange rates of (€1 =) USD 1.25; GBP 0.68. 2 Based on exchange rates of (€1 =) US
Slide 11: Outlook for 2005
Outlook for 2005 2004 2005 € million forecast1 External revenue 42,137 Operating result 5,976 Net income 2,137 Recurrent net income2 1,794 ROCE 13.5% Capex on fixed assets 3,429 < €4bn 1 Based on exchange rates of (€ 1 =) USD 1.25; GBP 0.70. 2 Recurrent net income = Net income adjusted for non-opera
Slide 12: Back-ups
Back-ups RWE
Slide 13: Currency effects 2005 versus 2004
Currency effects 2005 versus 2004 € million ∆ to thereof ∆ Q1-Q3 2005 Q1-Q3 2004 currency External revenue 29,409 -540 -140 EBITDA 6,147 -66 -35 Operating result 4,656 +192 -22 Net income 1,697 +86 -5 ∆ to thereof ∆ € billion 09/30/2005 12/31/2004 currency Net financial debt 10.8 -1.6 +0.8 Currency
Slide 14: German power market: Stable profit growth by prudent forward selling
German power market: Stable profit growth by prudent forward selling Base load in €/MWh as of 11/14/2005 42 40 38 36 Forward 34 2005 32 30 28 26 >25% sold >50% sold >75% sold >90% sold 24 48 46 44 42 40 Forward 38 36 2006 34 32 30 28 26 >1% sold >10% sold >25% sold >50% sold >90% sold 24 46 44 42 40
Slide 15: Electricity Price in Germany and UK
Electricity Price in Germany and UK € / MWh Forward 2005 Forward 2006 £ / MWh 65 60 60 55 55 50 50 45 45 40 40 35 35 30 30 25 25 20 20 15 15 10 10 Dec 03 Feb 04 Apr 04 Jun 04 Aug 04 Oct 04 Dec 04 Feb 05 Apr 05 Jun 05 Aug 05 Oct 05 Dec 05 Wholesale Peak Germany in €/MWh* Wholesale Peak UK in £/MWh* W
Slide 16: Coal price development
Coal price development €/tCE 85 80 75 Ø CIF-NWE 2004 70 67,44 €/t ce 65 60 55 Ø BAFA2 2004 55.36 €/t ce 50 Ø BAFA2 2002 Ø CIF-NWE 2003 44.57 €/t ce 43.74 €/t ce 45 40 Ø CIF-NWE 2002 Ø BAFA2 2003 39.40 €/t ce 39.87 €/t ce 35 30 Jan 02 Jun 02 Nov 02 Apr 03 Sep 03 Feb 04 Jul 04 Dec 04 May 05 Q4 05 2007
Slide 17: European Emissions Trading
European Emissions Trading 30 35 monthly trading volume EUA 05 30 25 EUA 06 EUA 07 25 20 20 Mio. EUA** € / EUA 15 15 10 10 5 5 0 0 Mrz 03 Mai 03 Nov 03 Mrz 04 Mai 04 Nov 04 Mrz 05 Mai 05 Apr 03 Jun 03 Jul 03 Aug 03 Okt 03 Jan 04 Apr 04 Jun 04 Jul 04 Aug 04 Okt 04 Jan 05 Apr 05 Jun 05 Jul 05 Aug 05 O
Slide 18: RWE Group electricity production
RWE Group electricity production January – September Other Total Total in TWh Germany UK Internat. 2005 2004 Lignite 53.8 3.7 57.5 57.5 Nuclear 35.3 35.3 31.1 Hard coal 32.5 12.5 45.0 50.7 thereof contracts 20.3 20.3 28.2 Gas 8.5 11.2 19.7 25.4 Water and others 4.3 0.6 0.4 5.3 5.0 thereof contracts
Slide 19: RWE Group electricity sales volume
RWE Group electricity sales volume January – September Ger- Po- Hun- Total Total in TWh many UK land gary Others 2005 2004 Private and commercial 22.5 16.0 2.2 3.9 0.2 44.8 44.4 Business customers & 44.7 22.7 2.0 4.9 0.1 74.4 82.4 key industrial accounts Distributors / power utilities 43.2 0.1 0.3 3
Slide 20: RWE Gas sales volume
RWE Gas sales volume January – September Ger- Czech UK Others Total Total in TWh many Rep. 2005 2004 Private and commercial 19.7 25.5 26.2 4.3 75.7 77.7 Business customers & 31.8 31.0 5.7 12.2 80.7 84.1 key industrial accounts Distributors / power utilities 78.1 11.1 0.4 0.0 89.6 92.5 Total 129.6 67
Slide 21: RWE AG: flexible funding structure
RWE AG: flexible funding structure Fully committed for liquidity syndicated loan € 4.0 billion back-up and (€ 2.0 bn 364 days refinancing € 2.0 bn 5 years) €0.0 billion Commercial papers (up to 1 year) $ 5.0 billion $ 3.7 billion MTN programme (up to 30 years) € 20 billion € 15,4 billion Amounts use
Slide 22: Financial assets and liabilities
Financial assets and liabilities (as at 09/30/2005) €28.6 billion2 3.3 other 3,0 commercial paper €17.8 3,5 bank loans billion1 2.6 bonds 0.3 other financial assets 2,2 other loans 18,8 cash & cash equivalents 11.7 securities held as current assets securities held as 1.0 fixed assets financial finan
Slide 23: Gross financial debt currency and interest exposure
Gross financial debt currency and interest exposure1 Gross financial debt as of September, 2005: € 28.6 billion € / Others 7% Indexed 1% Floating 13% $2 33% £ 60% Fixed 86% Long term financed (> 1 Year): 78% of gross financial debt Short term financed (< 1 Year): 22% of gross financial debt With deb
Slide 24: Structural subordination in the RWE Group
Structural subordination in the RWE Group RWE AG (A+ / A1) / RWE Finance B.V. / Consolidated German Subsidiaries* 77% RWE Npower Thames Water Aqua Holdings GmbH Holdings Plc Thames Water Plc (A / A3)** 13% RWE Npower Thames Water Thames Water American E’town Corp.** Plc Utilities Ltd Utilities Finan