Slide 1: Q1-Q3 2020 Results
Q1-Q3 2020 Results 12 November 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: Strong operational performance for 9M and outlook FY2020 confirmed
Strong operational performance for 9M and outlook FY2020 confirmed • Adj. EBITDA for core business up ~4% to €1.8bn versus pro forma 2019, adj. EBITDA of RWE Group at €2.2bn • FY2020 outlook and dividend target of €0.85 per share confirmed. Adj. EBITDA for core business and Group to be at the upper
Slide 4: 'Our energy for a sustainable life' – continuous ESG progress
‘Our energy for a sustainable life’ – continuous ESG progress • 85% of our 9M investments comply with the proposed green investment criteria of the EU Taxonomy • Transition Pathway Initiative (TPI) confirmed RWE’s ambitious climate protection plans are in line with the targets of the 2015 Paris Clim
Slide 5: Adj. EBITDA of core business grows to €1.8bn
Adj. EBITDA of core business grows to €1.8bn Core adj. EBITDA 9M 2020 vs. 9M 2019 pro forma, € million +4% 1,765 1,843 • Excellent wind conditions in Q1 keep Offshore 399 Supply & Trading 569 Wind earnings at high level 382 • Capacity additions and good wind conditions Hydro/Biomass/Gas 297 strength
Slide 6: On track: more than 300 MW commissioned in Q3
Core On track: more than 300 MW commissioned in Q3. Further investment decisions taken mainly for onshore & solar projects Wind/Solar installed capacity increases to 9.2 GW and further 3.1 GW under construction/FID 9M 2020 GW pro rata >13.0 0.7 • Good 300 MW of onshore and solar 1.1 capacity commiss
Slide 7: Where are we with our major construction projects?
Where are we with our major construction projects? Offshore Wind Onshore Wind Solar Project Triton Knoll Kaskasi Boiling Springs Big Raymond Scioto Ridge Hickory Park Limondale Country Capacity 506 MW 342 MW 148 MW 440 MW 250 MW 236 MW2 249 MW pro rata Expected COD Q1 2022 Q4 2022 Q4 2020 Q4 2020 /
Slide 8: Offshore Wind: Earnings up thanks to excellent wind conditions in Q1
Core Offshore Wind: Earnings up thanks to excellent wind conditions in Q1 Key financials 9M - Offshore Wind 9M 2020 vs. 9M 2019 pro forma pro forma € million 9M 2020 9M 2019 change Stronger performance on the back of above average wind speeds in Q1 2020 Adj. EBITDA 738 660 +78 t/o non-recurring item
Slide 9: Onshore Wind/Solar: Solid earnings on the back of capacity additions
Core Onshore Wind/Solar: Solid earnings on the back of capacity additions and better weather conditions in Q1 Key financials 9M - Onshore Wind/Solar 9M 2020 vs. 9M 2019 pro forma pro forma € million 9M 2020 9M 2019 change Increased capacity in Onshore Wind/Solar, Europe and US Higher earnings in Eur
Slide 10: Hydro/Biomass/Gas: Increased 9M result owing to GB capacity payments
Core Hydro/Biomass/Gas: Increased 9M result owing to GB capacity payments Key financials 9M - Hydro/Biomass/Gas 9M 2020 vs. 9M 2019 pro forma pro forma € million 9M 2020 9M 2019 change Income from GB capacity payments (+€105 million)2 Adj. EBITDA 382 297 +85 Lower earnings from Eemshaven power plant
Slide 11: Supply & Trading: Strong EBITDA contribution in the first nine months
Core Supply & Trading: Strong EBITDA contribution in the first nine months Key financials 9M - Supply & Trading 9M 2020 vs. 9M 2019 pro forma pro forma € million 9M 2020 9M 2019 change Strong trading performance as well as good result for gas & LNG business; however, earnings contribution Adj. EBITD
Slide 12: Coal/Nuclear: Solid earnings on the strength of a good hedge performance
Coal/Nuclear: Solid earnings on the strength of a good hedge performance Key financials 9M - Coal/Nuclear 9M 2020 vs. 9M 2019 pro forma pro forma € million 9M 2020 9M 2019 change Higher realised generation margin for outright position Adj. EBITDA 381 205 +176 Production plan updated after lignite ph
Slide 13: Adj. net income at solid level of ~€0.8bn
Adj. net income at solid level of ~€0.8bn following good operational performance, despite negative one-off in Q1 financial result Adj. net income, € million 9M 2020 Adj. EBITDA 2,224 • Adj. EBITDA excludes non-operating result 9M 2020 • Adj. financial result includes E.ON dividend of €182 Adj. depre
Slide 14: Adj. operating cash flow increased to ~€2.3bn
Adj. operating cash flow increased to ~€2.3bn mainly in light of the good adj. EBITDA Reconciliation to adj. operating cash flow, € million 9M 2020 2,224 2,267 • Changes in provisions driven by legacy and 40 -26 -312 342 restructuring provisions among others • Positive effects in ‘Changes in operati
Slide 15: Net debt down on the back of a very good operational performance
Net debt down on the back of a very good operational performance and the capital increase Development of net debt continuing operations, € billion 9M 2020 6.9 0.5 5.9 -2.3 1.5 -2.0 0.6 0.7 RWE Adj. operating Net cash Dividends Capital Other Changes in RWE continuing cash flow investments increase ch
Slide 16: 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 12 Nov 2020 9M 2020 Results
Slide 17: Appendix
Appendix 12 Nov 2020 9M 2020 Results
Slide 18: Reconciliation to adj. net income
Reconciliation to adj. net income 9M 2020 (€ million) Reported Adjustments Adjusted Adj. EBITDA 2,224 - 2,224 Depreciation -1,079 - -1,079 Adj. EBIT 1,145 - 1,145 Non-operating result 1,161 -1,161 - Financial result -395 +164 -231 Income from continuing 1,911 -997 914 operations before taxes Taxes o
Slide 19: Economic net debt
Economic net debt Net debt 1 (€ million) 30 Sep 2020 31 Dec 2019 +/- New net debt definition Cash and cash equivalents 4,095 3,192 903 • Net debt no longer Marketable securities 3,932 3,523 409 contains mining provisions, which Other financial assets 2,024 2,383 -359 essentially cover our Financial
Slide 20: Key sensitivities to our planning assumptions for FY2020
Key sensitivities to our planning assumptions for FY2020 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 mi
Slide 21: Your contacts in Investor Relations
Your contacts in Investor Relations Important Links Financial Calendar • Annual and interim reports & statements • 16 March 2021 http://www.rwe.com/ir/reports ADR programme available Annual Report for fiscal 2020 • Investor and analyst conferences • 28 April 2021 http://www.rwe.com/ir/investor-and-a