Uniper Se · XETR:UN0
Uniper — H1 2017 Earnings Presentation
33 slides from Uniper's earnings presentation, Aug 8, 2017
Slide 1: H1 2017 Interim results
H1 2017 Interim results Klaus Schäfer – CEO Christopher Delbrück – CFO 08 August 2017
Slide 2: Agenda – Interim reporting H1 2017
Agenda – Interim reporting H1 2017 1. Highlights and outlook Klaus Schäfer – CEO 2. Financial results Christopher Delbrück – CFO 3. Appendix
Slide 3: Highlights of H1 2017 – Delivery mode
Highlights of H1 2017 – Delivery mode Macro trends Positive political signals for Europe’s energy markets Action Plan Voyager programme in execution mode; Large asset projects with additional clarity on timeline Earnings Robust operating half-year results Outlook Adjusted EBIT outlook range narrowed
Slide 4: Positive political signals
Positive political signals European energy markets Germany energy policy in motion North-Rhine Westphalia – a blueprint for Germany? New energy policy in North-Rhine Westphalia recognizes a more balanced approach is needed Support to re-establishing equal market conditions between technologies G
Slide 5: Update on large asset projects – more clarity
Update on large asset projects – more clarity Datteln IV coal plant Berezovkaya III lignite plant Nord Stream II gas pipeline Ready for commissioning Clarity on project metrics Government supportive Commissioning fully on track for Final agreement with main contractor German government regards
Slide 6: Action Plan progressing well
Action Plan progressing well Costs Cash Portfolio Controllable costs Economic net debt Evaluation approach €bn €bn 2.3 4.71 1.9 4.2 3.3 2015 2018E 12/2015 12/2016 06/2017 Costs down Net debt down Leverage target achieved Implementation of the Voyager Strong OCF supported by solid Yuzhno-Russko
Slide 7: Agenda – Interim reporting H1 2017
Agenda – Interim reporting H1 2017 1. Highlights and outlook Klaus Schäfer – CEO 2. Financial results Christopher Delbrück – CFO 3. Appendix
Slide 8: Key financials H1 2017 – Solid overall picture
Key financials H1 2017 – Solid overall picture Adj. EBIT(DA) Economic net debt Key highlights €bn 1.5 €bn Adj. EBIT(DA) down 1.3 Lapse of 2016 one-off effects in the gas business (LTC-settlement and less pronounced gas optimization results) … 1.1 4.2 1,1 0.9 3.3 … partly offset by strong Unipro
Slide 9: Markets – Power prices and commodities
Markets – 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 Jul-17 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-15 Ju
Slide 10: Turning point of outright power prices ahead
Turning point of outright power prices ahead Outright position – baseload power price1 €/MWh 35 30 25 20 15 2017 2018 2019 2020 2021 Indicative development of hedge ratio2 Achieved price (Germany) Power Baseload Forward (Germany) Achieved price (Sweden) Power Baseload Forward (Nordic) 1. Power basel
Slide 11: European Generation in H1 2017 – Increase across all activities
European Generation in H1 2017 – Increase across all activities Adj. EBIT development by sub-segment in H1 2017 Main effects €m Hydro + 164 (+) Lapse of 2016 restructuring one-off 91 -6 Nuclear 37 42 (+) Positive volume effects: 284 Ringhals 2 back in operation 120 Shift of Oskarshamn 3 main
Slide 12: Global Commodities in H1 2017 – Normalization in midstream gas business
Global Commodities in H1 2017 – Normalization in midstream gas business Adj. EBIT development by sub-segment in H1 2017 Main effects TBU €m Gas - 833 (-) Lapse of 2016 one-offs Gazprom provision release Lower (extraordinary) optimization gains 1.095 51 34 - 32 262 Yuzhno Russkoye (YR) - 887
Slide 13: International Power H1 2017 – Insurance coverage for Berezovskaya fully cashed in
International Power H1 2017 – Insurance coverage for Berezovskaya fully cashed in Adj. EBIT development by sub-segment in H1 2017 Main effects TBU €m + 517 International Power +518 Stable underlying business in a favorable regulated market -1 environment 477 Russia -39 (+) Significant one-off ef
Slide 14: Strong Adj. EBIT(DA) to OCF conversion
Strong Adj. EBIT(DA) to OCF conversion Adj. EBIT to operating cash flow reconciliation €m 540 41 238 -6 - 106 323 - 553 1.519 1.407 1.253 930 Adj. EBIT Depreci- Adj. EBITDA Non-cash Provision Changes in Payments OCFbIT Interest Tax OCF H1 2017 ation and H1 2017 effective utilization working related
Slide 15: Economic net debt benefits from strong OCF
Economic net debt benefits from strong OCF Economic net debt €bn 4.2 1.0 3.3 +0.2 +0.3 +0.2 0.8 1.0 -0.2 -1.4 0.6 2.4 1.7 Economic net OCF Capex Pension Dividend paid Other 3 Economic net debt YE 2016 debt H1 2017 AROs1 Pension Net financial position2 1. Includes nuclear and other asset retirement o
Slide 16: 2017 Outlook upgraded
2017 Outlook upgraded Adj.EBIT Dividend €bn €bn ~+25% 1.4 1.2 0.25 0.8 1.0 0.2 0.9 2015A 2016A 2017E FY2016 FY2017 More visibility limits downside risk Dividend growth guidance raised Range narrowed by €0.1bn towards upper end Based on our dividend policy, on the current outlook Segmental outl
Slide 17: IR roadmap for H2 2017
IR roadmap for H2 2017 Connect September roadshow activity in all key destinations Educate Generation Deep Dive planned for October Finalize Yuzhno Russkoye closing Shape Strategic and financial update Uniper SE, Presentation H1 2017, 08 August 2017 17
Slide 18: Agenda – Interim reporting H1 2017
Agenda – Interim reporting H1 2017 1. Highlights and outlook Klaus Schäfer – CEO 2. Financial results Christopher Delbrück – CFO 3. Appendix
Slide 19: Group EBIT(DA) in H1 2017 with robust performance
Group EBIT(DA) in H1 2017 with robust performance Adj. EBIT development by segment in H1 2017 Highlights €m European Generation 164 (+) Good nuclear output in Sweden 516 (+) Lapse of restructuring one-off -52 (+) Lower depreciation 1.135 930 - 833 Global Commodities (-) Lapse of Gazprom one-
Slide 20: Outright power hedging in Germany and Nordic
Outright power hedging in Germany and Nordic Outright position – baseload power price >80% >80% >75% €/MWh >90% >85% >50% 35 30 25 20 Status: June 2017 15 2017 2018 2019 Achieved price (Germany) Hedge ratio Germany Achieved price (Sweden) Hedge ratio Sweden Uniper SE, Presentation H1 2017, 08 August
Slide 21: Uniper Group – Adjusted EBIT(DA) by segment
Uniper Group – Adjusted EBIT(DA) by segment Adj. EBITDA €m H1 2017 H1 2016 % European Generation 507 406 +25 Global Commodities 310 1,165 -73 International Power 526 5 - Administration / Consolidation -90 -36 -150 Total 1,253 1,540 -19 Adj. EBIT €m H1 2017 H1 2016 % European Generation 284 120 +137
Slide 22: Uniper Group – Adjusted EBIT(DA) by sub-segment
Uniper Group – Adjusted EBIT(DA) by sub-segment Adj. EBITDA and EBIT H1 2017 H1 2016 H1 2017 H1 2016 €m Adj. EBITDA Adj. EBITDA Adj. EBIT Adj. EBIT European Generation Hydro 169 127 141 99 Nuclear 77 37 45 8 Fossil 288 239 125 20 Other/ Consol. -27 2 -28 -8 Subtotal 507 406 284 120 Global Commoditie
Slide 23: Uniper Group – Key P&L items at a glance
Uniper Group – Key P&L items at a glance Key P&L items €m H1 2017 H1 2016 Sales 37,305 33,327 Adjusted EBITDA 1,253 1,540 Economic depreciation and amortization / reversals -323 -405 Adjusted EBIT 930 1,135 Non-operating adjustments 381 4,595 EBIT 1,311 -3,460 Net interest income / expense 16 -375 I
Slide 24: Uniper Group – Details on non-operating adjustments
Uniper Group – Details on non-operating adjustments Non-operating adjustments €m H1 2017 H1 2016 Net book gains / losses - 522 Fair value measurement of derivative financial instruments 446 -1,034 Restructuring / cost management expenses -13 -223 Non-operating impairment charges / reversals -34 -2,8
Slide 25: Uniper Group – Adjusted EBITDA to net income
1,362 Uniper Group – Adjusted EBITDA to net income Reconciliation Adj. EBITDA to net income €m 446 3 - 34 - 49 - 118 - 323 1.253 - 212 930 967 Adj. Depreciation Adj. Economic MTM Impairments Interest Other Taxes on Net EBITDA and EBIT interest, Derivatives and provision result non- Income1 amortizat
Slide 26: Uniper Group – Cash effective investments
Uniper Group – Cash effective investments Investments by segment €m H1 2017 H1 2016 % European Generation 188 177 +6 Global Commodities 13 66 -80 International Power 66 44 +50 Administration / Consolidation 27 5 - Total 294 292 +1 Investment split – maintenance and growth €m H1 2017 H1 2016 % Mainte
Slide 27: Uniper Group – Consolidated balance sheet (1/2)
Uniper Group – Consolidated balance sheet (1/2) Balance sheet of the Uniper Group – assets €m 30 Jun 2017 31 Dec 2016 Goodwill 2,205 2,701 Intangible assets 823 2,121, Property, plant and equipment 11,439 11,700 Companies accounted for under the equity method 586 827 Other financial assets 673 728 E
Slide 28: Uniper Group – Consolidated balance sheet (2/2)
Uniper Group – Consolidated balance sheet (2/2) Balance sheet of the Uniper Group – equity and liabilities €m 30 Jun 2017 31 Dec 2016 Capital stock 622 622 Additional paid-in capital 10,825 10,825 Retained earnings 5,019 4,156 Accumulated other comprehensive income -3,622 -3,382 Equity attributable
Slide 29: Uniper Group – Net financial position
Uniper Group – Net financial position Net financial position of the Uniper Group €m 30 Jun 2017 31 Dec 2016 Liquid funds 795 341 Non-current securities 99 160 Financial liabilities -2,531 -2,870 Net financial position -1,637 -2,369 Provisions for pensions and similar obligations -631 -785 Asset reti
Slide 30: Uniper Group – Consolidated statement of cash flows
Uniper Group – Consolidated statement of cash flows Statement of cash flows of the Uniper Group €m H1 2017 H1 2016 Net income / loss 1,057 -3,885 Depreciation, amortization and impairment of intangibles / property, plant, equipment 369 3,275 Changes in provisions -323 -1 Changes in deferred taxes 73
Slide 31: Uniper – Contact your Investor Relations team
Uniper – Contact your Investor Relations 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.en
Slide 32: Financial calendar & further information
Financial calendar & further information Financial calendar 07 November 2017 Quarterly Statement January – September 2017 08 March 2018 Annual Report 2017 08 May 2018 Quarterly Statement January – March 2018 06 June 2018 AGM (Essen, Grugahalle) Further information https://ir.uniper.energy
Slide 33: 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