Slide 1: H1 2023 Results
10 August 2023 H1 2023 Results Markus Krebber, CEO Michael Müller, CFO Thomas Denny, Head of Investor Relations 10 Aug 2023 H1 results 2023
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: Markus Krebber, Chief Executive Officer
Markus Krebber Chief Executive Officer, RWE AG 10 Aug 2023 H1 results 2023 Page 3
Slide 4: Excellent operational performance while delivering profitable growth
Excellent operational performance while delivering profitable growth Strong earnings development across all core segments, notably driven by strong Hydro/Biomass/Gas and Supply & Trading performance; full year guidance increased Marked green capacity growth of 5.1 GW and further 7.2 GW under constru
Slide 5: Strong earnings across the entire core business
Strong earnings across the entire core business Group EBITDA in EUR m • Profitable green investments deliver increase in earnings and attractive returns Core business Coal/Nuclear 4,540 • Strong performance across the entire core business 4,109 • Outstanding contribution of Hydro/Biomass/Gas 2,124 a
Slide 6: Flexible Generation to deliver strong earnings today and in the years to come
Flexible Generation to deliver strong earnings today and in the years to come Gross Margin Adj. EBITDA H/B/G Hydro/Biomass/Gas Ø 2024-26 • System services include secured revenues from (illustrative) >1.5bn EUR capacity payments and other regulated margins • Driven by scarcity of flexible generation
Slide 7: Green generation portfolio increased by 5.1 GW in first half of 2023
Green generation portfolio increased by 5.1 GW in first half of 2023 Development of our green generation portfolio GW pro rata +7.2 41.5 1.3 0.2 2.6 0.6 34.3 2.5 5.1 29.2 31 Dec 2022 Capacity 30 Jun 2023 Offshore Onshore Solar Batteries Flexible Total additions Wind Wind Generation & H2 Capacity in
Slide 8: Improved outlook on the back of strong operational performance
Improved outlook on the back of strong operational performance FY 2023 in EUR m Adj. EBITDA Adj. net income 7,100 – 7,700 5,800 – 6,400 3,300 – 3,800 2,200 – 2,700 Old Outlook New Outlook 10 Aug 2023 H1 results 2023 Page 8
Slide 9: Michael Müller, Chief Financial Officer
Michael Müller Chief Financial Officer, RWE AG 10 Aug 2023 H1 results H1 results2023 2023 Page 9
Slide 10: Strong earnings driven by capacity additions, flexible generation and Supply & Trading
Strong earnings driven by capacity additions, flexible generation performance and Supply & Trading Core adj. EBITDA in EUR m • Offshore Wind earnings up on the back of capacity additions (Triton Knoll & Kaskasi) and higher hedged Offshore Wind +2,486 prices, partly offset by lower wind conditions On
Slide 11: Adjusted net income reflects strong operational performance
Adjusted net income reflects strong operational performance Adj. net income in EUR m • Adj. EBITDA driven by strong operational H1 FY 2022 2021 H1 FY 2023 2022 performance in 2023 and negative one-off in 2022 Adj. EBITDA 2,124 4,540 • Adj. depreciation increased in line with H1 2023 growth investmen
Slide 12: Adjusted operating cash flow marked by strong operating result
Adjusted operating cash flow marked by strong operating result and positive working capital effects Reconciliation to adj. operating cash flow for H1 2023 in EUR m -23 -418 5,545 4,540 2,230 -784 Adj. EBITDA Changes in Changes in Cash Cash Adj. operating provisions/ operating financial result taxes
Slide 13: Net debt increases due to CEB acquisition, green growth and hedging timing
Net debt increases due to CEB acquisition, green growth and timing effects from hedging activities Development of net debt in H1 2023 in EUR bn (+ net debt/- net assets) 5.9 0.2 3.1 0.8 2.7 -1.6 -5.5 6.3 Net debt Adj. operating Acquisition CEB Net cash Dividends Other changes in Changes in Net debt
Slide 14: Outlook for full year 2023 significantly raised
Outlook for full year 2023 significantly raised on the back of strong H1 performance Group outlook FY 2023 Divisional outlook FY 2023 (adj. EBITDA) in EUR m in EUR m Old Outlook New Outlook Old Outlook New Outlook Core adj. EBITDA 4,800 – 5,400 6,300 – 6,900 Offshore Wind 1,400 – 1,800 1,400 – 1,800
Slide 15: Appendix
Appendix 10 Aug 2023 H1 results 2023 Page 15
Slide 16: Core Offshore Wind: Earnings up due to capacity additions
Core Offshore Wind Earnings up due to capacity additions Key financials H1 2023 – Offshore Wind Adj. EBITDA H1 2023 vs. H1 2022 € million H1 2023 H1 2022 Change Higher earnings due to capacity additions (Triton Knoll & Kaskasi) Adj. EBITDA 762 632 130 Higher hedged prices t/o non-recurring items - -
Slide 17: Core Onshore Wind/Solar: Earnings up thanks to CEB acquisition
Core Onshore Wind/Solar Earnings up thanks to CEB acquisition and organic growth Key financials H1 2023 – Onshore Wind/Solar Adj. EBITDA H1 2023 vs. H1 2022 € million H1 2023 H1 2022 Change Earnings contribution from CEB (1 March) and organic capacity additions Adj. EBITDA 519 505 14 Lower realised
Slide 18: Core Hydro/Biomass/Gas: Exceptional earnings development
Core Hydro/Biomass/Gas Exceptional earnings development on the back of strong operational performance Key financials H1 2023 – Hydro/Biomass/Gas Adj. EBITDA H1 2023 vs. H1 2022 € million H1 2023 H1 2022 Change Higher earnings from strong short-term asset optimisation Adj. EBITDA 1,939 755 1,184 High
Slide 19: Core Supply & Trading: Strong trading performance
Core Supply & Trading Strong performance of the trading business and absence of negative one-off Key financials H1 2023 – Supply & Trading Adj. EBITDA H1 2023 vs. H1 2022 € million H1 2023 H1 2022 Change Strong performance across almost all commodities and regions Adj. EBITDA 799 -203 1,002 Earnings
Slide 20: Non-Core Coal/Nuclear: Earnings down on lower realised power prices
Non-Core Coal/Nuclear Earnings down due to lower realised power prices for unhedged volumes Key financials H1 2023 – Coal/Nuclear Adj. EBITDA H1 2023 vs. H1 2022 € million H1 2023 H1 2022 Change Lower realised margins on unhedged positions Adj. EBITDA 431 501 -70 Higher maintenance costs t/o non-rec
Slide 21: Economic net debt
Economic net debt Net assets/net debt Net debt definition in EUR m 30 Jun 2023 31 Dec 2022 +/- Cash and cash equivalents 8,523 6,988 1,535 • Net debt does not contain Marketable securities 8,175 13,730 -5,555 mining provisions, which Other financial assets 3,964 8,543 -4,579 essentially cover our Fi