Slide 1: Interim Financial Report 9M 2014
INTERIM FIN AN C IAL R EPORT 9M 2014 31 October 2014 9M 2014 RESULTS 1
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation are based on the beliefs of our We urge you to read our annual report available on our website at management as well as assumptions made by and information currently www.dongenergy.com for a discussion of some of the factors that could available to
Slide 3: 9M 2014 highlights: Financials
9M 2014 highlights Financials 9M 2014 RESULTS 3
Slide 4: Continued progress
Continued progress Highlights 9M 14 Group EBITDA (DKKbn) EBITDA of DKK 13.0bn (up 16% y/y) +16% Continued low net debt level 15.0 14.1 13.7 13.0 11.2 FFO1/Adjusted net debt of 32% (23% EoY 2013) 8.6 ROCE1 of 4.3% (5.1% excl. writedowns) – up by 6 percentage points vs. 9M 13 Outlook revised u
Slide 5: Recent key events
Recent key events Inauguration of West of Duddon Sands (WoDS) Fact sheet West of Duddon Sands - Inaugurated 30 October 2014 (first power in January 2014) - Provides clean energy to 300,000 UK households Divestment of Stenlille gas storage facility - The sale forms part of the divestment of non-c
Slide 6: 9M 2014 highlights: Financials
9M 2014 highlights Financials 9M 2014 RESULTS 6
Slide 7: Market conditions and prices
Market conditions and prices OIL AND GAS PRICE UK POWER PRICE USD/bbl EUR/MWh EUR/MWh Oil price Gas TTF (rhs) 140 35 80 Forward prices Forward prices 120 30 70 100 25 60 80 20 50 60 15 40 2012 2013 2014 2015 2012 2013 2014 2015 Source: Platts, Argus Source: LEBA WIND ENERGY CONTENT GREEN DARK SPREAD
Slide 8: Financial highlights 9M 14
Selected financials (DKKm) 9M 14 9M 13 2013 Financial highlights 9M 14 Revenue 49,921 53,190 73,105 EBITDA 13,025 11,215 15,004 Net financial items -1,640 -2,456 -3,800 EBITDA – DKK 13.0bn (up 16% y/y) Net profit 857 52 -993 Higher oil & gas production (primarily due to Ormen Lange redetermination
Slide 9: Exploration & Production
Exploration & Production Oil & Gas production (mboe) Oil Gas 31.7 30.9 26.4 28.5 Operational highlights 9M 14 24.4 7.5 21.3 Production up 45% – primarily due to the 5.9 redetermination of the Ormen Lange field 23.4 15.4 Siri platform: ‒ Repair work completed in July 2014 with expected final cost
Slide 10: Wind Power
Wind Power Renewable production (TWh) 6 Operational highlights 9M 14 3.8 3.4 4 Lost production from divestments1 partly offset by full- year impact from Anholt and production from WoDS 2 Continued high availability (93% in 9M 14) 0 Low wind energy content in Q3 14 2010 2011 2012 2013 9M 13 9M
Slide 11: Thermal Power
Thermal Power Thermal heat and power production (PJ, TWh) 60 20 Operational highlights 9M 14 15 40 Declining power and heat production 10 20 ‒ Declining power production (-42% y/y) due to 5 warm weather and divestment of Severn power 0 0 station (Dec. 2013) 2010 2011 2012 2013 9M 13 9M 14 ‒ Heat p
Slide 12: Customers & Markets
Customers & Markets Operational highlights 9M 14 Operational figures 9M 13 9M 14 Milder weather negatively impacting gas sales and Gas sales TWh 95.8 87.8 gas distribution Power sales TWh 12.3 21.9 Higher power sales y/y from increased wind power Distribution of gas TWh 6.7 5.4 production in the
Slide 13: Debt overview
Debt overview Gross debt and hybrids Net debt (DKKbn) Key ratios loan portfolio1 9M 14 2013 Duration (years) 7.6 5.9 3% -70% Average time to maturity (years) 10.7 10.2 15% Bonds 25.8 Hybrids Average interest rate 4.2% 3.7% Bank loans Note (1): The key ratios refer to the end of period position and e
Slide 14: Outlook (new)
Outlook (new) EBITDA To exceed DKK 16bn in 2014 (previous expectation DKK 15-17bn) Net investments Around DKK 30bn in 2014-2015 FFO/Adjusted net debt To exceed 28% in 2014 (previous expectation around 25%) Around 30% from 2015 and onwards 9M 2014 RESULTS 14
Slide 15: Q&A
DONG 9M 2014 RESULTS 15 energy
Slide 16: Appendix
APPENDIX 9M 2014 RESULTS 16
Slide 17: Financial targets
Financial targets ROCE 9M 14 LTM Target 2016 Target 2020 EBITDA DKKbn 20 4.3% (5.1% excl. 15 Group >10% >12% writedowns) E&P 4.0% (6.2%) ~12% on average for 2015-2020 2013 2016 WP 8.7% (8.7%) 6-8% 12-14% Adjusted FFO/Net debt % Around 30% 23% C&M -2.9% (-1.2%) >8% >10% Operating CF Target: Yearly op
Slide 18: Market prices
Market prices Forwards as Actual, Actual, 27 Oct. 2014 9M 14 9M 13 (rest of year) (average) Oil, Brent USD/bbl 107 108 85 Gas, TTF EUR/MWh 20 27 23 Gas, NBP EUR/MWh 21 27 23 Electricity, Nord Pool system EUR/MWh 29 39 29 Electricity, Nord Pool, DK1 EUR/MWh 31 41 30 Electricity, EEX EUR/MWh 32 38 34
Slide 19: Investments
Investments Investments in 9M 14 Gross investments on Business Units in 9M 14 DKKm E&P DKK 3.6bn Cash flow from investing activities -12,981 Wind Power DKK 6.2bn Purchase and sale of securities (reversal) 9,841 Thermal Power DKK 0.5bn Sale of assets and companies (reversal) - 8,103 Customers
Slide 20: Calculation of FFO/Adjusted net debt
Calculation of FFO/Adjusted net debt 9M 14 LTM 9M 13 LTM 2013 EBITDA (Business Performance) 16.8 13.2 15.0 Reversal of recognised lease payment 0.5 0.5 0.4 Adjusted net interest expenses -2.6 -2.6 -2.8 Net interest expenses -1.4 -1.3 -1.7 Capitalised interest -0.3 -0.4 -0.3 Interest element of decom