Rwe Ag · XETR:RWE
Rwe — Q1 2020 Earnings Presentation
19 slides from Rwe's earnings presentation, May 14, 2020
Slide 1: Q1 2020 Results
Q1 2020 Results 14 May 2020 Markus Krebber, CFO Thomas Denny, 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: 2020 off to a good start – outlook for full year confirmed
2020 off to a good start – outlook for full year confirmed • Adj. EBITDA for the core business improved by ~16% on a pro forma basis to €1.0bn, adj. EBITDA for RWE Group at €1.3bn for Q1 2020 • FY2020 outlook and dividend target of €0.85 per share confirmed • Very solid liquidity situation with cash
Slide 4: Good all-round performance in Q1, adj. EBITDA tops €1bn in core business
Good all-round performance in Q1, adj. EBITDA tops €1bn in core business Core adj. EBITDA Q1 2020 vs. Q1 2019 pro forma, € million +16% 1,030 • Excellent wind conditions boost Offshore Wind 3 891 170 earnings Other/Consolidation 5 • Capacity additions and favourable wind conditions Supply & Trading
Slide 5: Good progress in Wind/Solar towards our growth target for 2022 and beyond
Core Good progress in Wind/Solar towards our growth target for 2022 and beyond Wind/Solar installed capacity increases to 8.9 GW and further 2.9 GW under construction Q1 2020 GW pro rata >13.0 • Onshore wind farm Peyton Creek 1.3 0.9 (151 MW) commissioned and tax 0.2 equity financing secured 8.7 8.9
Slide 6: Where are we with our major construction projects?
Core Where are we with our major construction projects? Offshore Wind Onshore Wind Solar Project Triton Knoll Kaskasi Clocaenog Forest Cranell Big Raymond Scioto Ridge Limondale Country Capacity 509 MW 342 MW 96 MW 220 MW 440 MW 250 MW 249 MW pro rata Expected COD Q1 2022 Q4 2022 Q2 2020 Q2 2020 Q4
Slide 7: Offshore Wind: Earnings on the up thanks to excellent wind conditions
Core Offshore Wind: Earnings on the up thanks to excellent wind conditions Key financials Q1 - Offshore Wind Q1 2020 vs. Q1 2019 pro forma pro forma € million Q1 2020 Q1 2019 change Stronger wind speeds, which are above average in Q1 2020 Adj. EBITDA 431 329 +102 t/o non-recurring items - - - Deprec
Slide 8: Onshore Wind/Solar: Puts in good performance thanks to new capacity additions and better weather conditions
Core Onshore Wind/Solar: Puts in good performance thanks to new capacity additions and better weather conditions Key financials Q1 - Onshore Wind/Solar Q1 2020 vs. Q1 2019 pro forma pro forma € million Q1 2020 Q1 2019 change Capacity additions in Onshore Wind/Solar in Europe and US Adj. EBITDA 209 1
Slide 9: Hydro/Biomass/Gas: Sound earnings in a volatile market environment and GB capacity market income
Core Hydro/Biomass/Gas: Sound earnings in a volatile market environment and GB capacity market income Key financials Q1 - Hydro/Biomass/Gas Q1 2020 vs. Q1 2019 pro forma pro forma € million Q1 2020 Q1 2019 change Higher earnings from the commercial optimisation of our power plant dispatch in a volat
Slide 10: Supply & Trading: Delivers strong trading performance in Q1, but below exceptional level of previous year
Core Supply & Trading: Delivers strong trading performance in Q1, but below exceptional level of previous year Key financials Q1 - Supply & Trading Q1 2020 vs. Q1 2019 pro forma pro forma € million Q1 2020 Q1 2019 change Strong trading performance as well as good result for gas & LNG business; howev
Slide 11: Coal/Nuclear: Posts solid earnings on the strength of a good hedge performance
Coal/Nuclear: Posts solid earnings on the strength of a good hedge performance Key financials Q1 - Coal/Nuclear Q1 2020 vs. Q1 2019 pro forma pro forma € million Q1 2020 Q1 2019 change Higher realised generation margin for outright position Adj. EBITDA 282 210 +72 t/o non-recurring items - - - Produ
Slide 12: Adj. net income of ~€0.6bn at a solid level on the back of a sound operational performance in Q1 2020
Adj. net income of ~€0.6bn at a solid level on the back of a sound operational performance in Q1 2020 Adj. net income, € million Q1 2020 Adj. EBITDA 1,312 • Adj. EBITDA excludes non-operating result Q1 2020 • Adj. financial result negatively affected by losses in -357 financial asset portfolio and n
Slide 13: Adj. operating cash flow of nearly €0.7bn mainly driven by good adj. EBITDA and typical cyclical effects in working capital
Adj. operating cash flow of nearly €0.7bn mainly driven by good adj. EBITDA and typical cyclical effects in working capital Reconciliation to adj. operating cash flow, € million Q1 2020 1,312 • Changes in provisions among others driven by -180 legacy and restructuring provisions -409 • Changes in wo
Slide 14: Net debt for RWE increases, mainly due to timing effects from hedging activities in Q1 2020
Net debt for RWE increases, mainly due to timing effects from hedging activities in Q1 2020 Development of net debt continuing operations, € billion Q1 2020 8.7 -0.5 7.0 2.3 -0.7 0.6 RWE Adj. operating Net cash investments Other changes in Changes in RWE continuing operations cash flow net financial
Slide 15: Outlook for fiscal year 2020
Outlook for fiscal year 2020 Core adj. EBITDA: ~€2.15 – 2.45bn Adj. EBITDA RWE Group: ~€2.7 – 3.0bn Adj. EBIT: ~€1.2 – 1.5bn Adj. net income: ~€0.85 – 1.15bn Dividend target: ~€0.85 per share 14 May 2020 Q1 2020 Results
Slide 16: Appendix
Appendix 14 May 2020 Q1 2020 Results
Slide 17: Reconciliation to adj. net income
Reconciliation to adj. net income Q1 2020 (€ million) Reported Adjustments Adjusted Adj. EBITDA 1,312 - 1,312 Depreciation -357 - -357 Adj. EBIT 955 - 955 Non-operating result 425 -425 - Financial result -367 +134 -233 Taxes on income -290 +182 -108 (Tax rate) (29%) (15%) Income of continuing operat
Slide 18: Key sensitivities to our planning assumptions for 2020
Key sensitivities to our planning assumptions for 2020 Driver Segment Type Sensitivity Group impact1 Wind levels Offshore Wind P&L +/- 10% production +/- €150 million Onshore Wind/Solar P&L +/- 10% production +/- €100 million Power prices Offshore Wind and Onshore Wind/Solar P&L +/- 10% +/- €60 mill
Slide 19: Your contacts in Investor Relations
Your contacts in Investor Relations Important Links Financial Calendar • Annual and interim reports & statements • 26 June 2020 http://www.rwe.com/ir/reports ADR programme available Virtual Annual General Meeting • Investor and analyst conferences • 1 July 2020 http://www.rwe.com/ir/investor-and-ana