Slide 1: Q1-Q3 2019 Results Presentation
Q1-Q3 2019 Results Presentation Investor and Analyst Conference Call, 14 Nov 2019 Markus Krebber, Chief Financial Officer Gunhild Grieve, 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: Successful launch of the 'new' RWE rounds off very good first nine months of 2019
Successful launch of the ‘new’ RWE rounds off very good first nine months of 2019 • Successful execution of transaction and launch of RWE Renewables business operations • Progress in Renewables growth plans – construction of 2.6 GW under way. Recent contract awarded to Sofia offshore wind farm in th
Slide 4: Ambitious CO2 reduction path with target to be carbon neutral by 2040
Ambitious CO2 reduction path with target to be carbon neutral by 2040 180 million tonnes CO2 • Reduction of 60 million tonnes by 2018 compared to neutral 2012 already achieved • Further reduction based on: - Achievement of target share of 65% renewables in Germany by 2030 - Full implementation of th
Slide 5: Strong adj. EBITDA of €1.5 billion driven by continued extraordinary earnings from Supply & Trading
RWE stand-alone Strong adj. EBITDA of €1.5 billion driven by continued extraordinary earnings from Supply & Trading RWE stand-alone: Adj. EBITDA 2019 vs 2018 (€ million) Q1-Q3 2018 1,334 • Lignite & Nuclear: Earnings at previous year’s level as a result of higher realised margins despite lower Ligni
Slide 6: Lignite & Nuclear – earnings at comparable level to Q3 2018
RWE stand-alone Lignite & Nuclear – earnings at comparable level to Q3 2018 in spite of the effect from Hambach restriction Key financials Q1 – Q3 2019 versus Q1 – Q3 2018: Q1 – Q3 Q1 – Q3 Slightly higher realised generation margins € million 2019 2018 change Lower production volumes, among others d
Slide 7: European Power – new FY 2019 outlook of €450 to €550 million
RWE stand-alone European Power – new FY 2019 outlook of €450 to €550 million includes suspended GB capacity payments Key financials Q1 – Q3 2019 versus Q1 – Q3 2018: Q1 – Q3 Q1 – Q3 Lower production volumes € million 2019 2018 change Less earnings from commercial optimisation UK 79 88 -9 Absence of
Slide 8: Stable margins and increased volumes from transfer of minority stakes in nuclear plants
RWE stand-alone Stable margins and increased volumes from transfer of minority stakes in nuclear plants Expected positions and hedge status as of 30 September 2019 (including Hambach restrictions in 2019 - 2021) Before any measures resulting from proposals of Growth, Structural Change and Employment
Slide 9: Fuel spreads mostly developed sideways in Q3
RWE stand-alone Fuel spreads mostly developed sideways in Q3 Development of German fuel spreads1 8.00 6.00 4.00 €/MWh 2.00 0.00 -2.00 -4.00 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Months to Delivery Cal18 Cal19 Cal20 Cal21 Cal22 1 Fuel spread d
Slide 10: Supply & Trading – exceptional earnings contribution continued with another good performance in Q3
RWE stand-alone Supply & Trading – exceptional earnings contribution continued with another good performance in Q3 Key financials Q1 – Q3 2019 versus Q1 – Q3 2018: Q1 – Q3 Q1 – Q3 Outstanding trading performance € million 2019 2018 change Gas & LNG above previous year’s result Absence of value adjus
Slide 11: Adj. net income for Q1-Q3 2019 reaches €854 million
RWE stand-alone Adj. net income for Q1-Q3 2019 reaches €854 million Adj. net income (€ million) Q1-Q3 Q1-Q3 2019 2018 • Adj. EBITDA excludes non-operating result 1,334 Adj. EBITDA 1,539 • Financial result adjusted for impact from lower -413 Adj. depreciation -494 discount rates for long-term provisi
Slide 12: High distributable cash flow mainly driven by strong adj. EBITDA
RWE stand-alone High distributable cash flow mainly driven by strong adj. EBITDA Distributable cash flow (€ million) Q1-Q3 Q1-Q3 2019 2018 1,539 • Changes in provisions: Slightly above of full year 1,334 Adj. EBITDA expectations following CO2 cyclicality. Main drivers Change in provisions & -555 for
Slide 13: Reconciliation of net debt from RWE stand-alone to RWE continuing operations
RWE stand-alone to RWE Group Reconciliation of net debt from RWE stand-alone to RWE continuing operations Development of net debt (RWE stand-alone and effects from closing of innogy transaction with E.ON) (€ billion) 2.3 -0.6 0.4 0.0 2.2 0.7 0.4 4.6 10.0 1.5 3.1 RWE Distributable Dividend Financial
Slide 14: Pro forma RWE Renewables would contribute €1.3 – €1.5 bn to adj. EBITDA in FY 2019
RWE Group Pro forma RWE Renewables would contribute €1.3 – €1.5 bn to adj. EBITDA in FY 2019 Pro forma adj. EBITDA RWE Renewables FY 2019 • RWE Renewables pro forma EBITDA (€ bn) of €1.3 – €1.5 bn for FY 2019 reflects following organisational 0.85 – 0.95 1.5 – 1.7 effects, with effect from Jan 2020:
Slide 15: Outlook for RWE increased due to GB capacity market and for acquired operations
Outlook for RWE increased due to GB capacity market and for acquired operations RWE stand-alone RWE Group Previous forecast2 Previous forecast2 2019 forecast 2019 forecast (if changed to H1) (if changed to H1) Adj. EBITDA 1,800 – 2,100 1,400 – 1,700 2,200 – 2,500 1,600 – 1,900 • Lignite & Nuclear 30
Slide 16: Appendix
Appendix 14 Nov 2019 Q1-Q3 2019 Conference Call
Slide 17: Net debt of continuing operations increased mainly due to innogy-transaction and change in variation margins
RWE Group Net debt of continuing operations increased mainly due to innogy-transaction and change in variations margins Development of net debt (RWE Group) – continuing operations (€ billion) 4.4 0.3 4.7 1.5 0.5 0.6 2.2 0.4 0.1 10.0 RWE First-time RWE Cash flows Capex on Dividends incl. Change in Ch
Slide 18: Reconciliation to adj. net income
Reconciliation to adj. net income Q1 – Q3 RWE stand-alone Q1 – Q3 2019 2018 change (€ million) Reported Adjustments Adjusted Adjusted Adjusted Adj. EBITDA 1,539 - 1,539 1,334 205 Depreciation -494 - -494 -413 -81 Adj. EBIT 1,045 - 1,045 921 124 Non-operating result -302 +302 - - - Financial result -
Slide 19: Power prices and commodities
Power prices and commodities Base load power prices – Germany, NL (1 year forward) Base load power prices – UK (1 year forward) €/MWh €/MWh 100 100 80 80 UK NL 60 60 40 40 Germany 20 20 Nov'17 Nov'18 Nov'19 Nov'17 Nov'18 Nov'19 Coal prices – API2 Cal-ahead Gas prices – TTF Cal-ahead Carbon prices -
Slide 20: Clean Dark and Spark Spreads – 2018 – 2020 forwards for Germany, UK and NL
Clean Dark (CDS) and Spark Spreads (CSS) – 2018 – 2020 forwards1 for Germany, UK and NL Germany UK2 Netherlands Cal18 Cal19 Cal20 Cal18 Cal19 Cal20 Cal18 Cal19 Cal20 €/MWh €/MWh Ø8.69 Ø11.33 Ø7.67 Ø6.77 Ø5.07 Ø4.73 Ø4.18 Ø6.37 Ø3.92 Ø3.22 Ø1.07 Ø3.33 Ø4.68 Ø4.99 Ø5.59 Ø-0.18 Ø4.16 Ø-1.28 CDS Cal 20
Slide 21: Your contacts in Investor Relations
Your contacts in Investor Relations Important Links Financial Calendar • Annual and interim reports & statements • 11 March 2020 • 04 May 2020 http://www.rwe.com/ir/reports ADR programme available FY 2019 results Dividend payment • Investor and analyst conferences • 12 March 2020 • 14 May 2020 http:
Slide 22: Xs Weahian'
Xs Weahian' SS ISL SIS XX i 9