Slide 1: Q1 2019 Results presentation
Q1 2019 Results presentation Investor and Analyst Conference Call 15 May 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: Key messages of Q1 2019: Good start into FY 2019
Key messages of Q1 2019: Good start into FY 2019 > Good first quarter for RWE on the back of an outstanding trading performance which overcompensated a weak Q1 for the European Power division > Strong distributable cash flow supported by expected reversal in working capital > Increase in net debt du
Slide 4: High adjusted EBITDA of €510 million mainly supported by strong earnings from Supply & Trading
High adjusted EBITDA of €510 million mainly supported by strong earnings from Supply & Trading Group RWE stand-alone (€ million) 555 Q1 2018 299 +8 > Lignite & Nuclear: Earnings at previous year’s Lignite & Nuclear +8 level as a result of higher realised margins despite lower generation volumes -96
Slide 5: Lignite & Nuclear – earnings on comparable level to Q1 2018 in spite of Hambach restriction
Lignite & Nuclear – earnings on comparable level to Q1 2018 in spite of the effect from Hambach restriction Key financials Q1 2019 versus Q1 2018: Q1 Q1 Slightly higher realised generation margins € million 2019 2018 change Lower production volumes, among others due to restrictions at Hambach mine a
Slide 6: European Power – after weak first quarter, full year guidance expected at lower end of the range
European Power – after weak first quarter, full year guidance expected at lower end of the range Key financials Q1 Q1 Q1 2019 versus Q1 2018: € million 2019 2018 change Lower production volumes UK 40 85 -45 Less earnings from commercial optimisation Continental Europe 26 74 -48 Absence of capacity p
Slide 7: Hedging – no changes in hedged spread levels
Hedging – no changes in hedged spread levels Expected positions and hedge status as of 31 March 2019 (including Hambach restrictions) Before any measures resulting from proposals of ‘Growth, Structural Change and Employment’ commission Outright Average hedge price 2019 – 2022 corresponds with averag
Slide 8: No major changes in the development of fuel spreads
No major changes in the development of fuel spreads Development of German fuel spreads1 8,00 7,00 6,00 5,00 4,00 €/MWh 3,00 2,00 1,00 0,00 -1,00 -2,00 -3,00 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 Cal2
Slide 9: Supply & Trading – after outstanding performance in Q1, optimistic to end full year at upper end of the range
Supply & Trading – after outstanding performance in Q1, optimistic to end full year at upper end of the range Key financials Q1 2019 versus Q1 2018: Q1 Q1 Outstanding trading performance € million 2019 2018 change Strong earnings from gas and LNG business Adj. EBITDA 255 -24 +279 t/o non-recurring i
Slide 10: Adjusted net income for Q1 2019 reaches €273 million
Adjusted net income for Q1 2019 reaches €273 million RWE stand-alone Q1 2018 Q1 2019 (€ million) > RWE stand-alone adj. EBITDA includes 299 Adj. EBITDA 510 adj. EBITDA from Lignite & Nuclear, European Power, Supply & Trading and dividend from innogy (accounted for in Q2) -128 Adj. depreciation -159
Slide 11: High distributable cash flow of €484 million mainly driven by strong adj. EBITDA and working capital
High distributable cash flow of €484 million mainly driven by strong adj. EBITDA and positive effects in working capital RWE stand-alone Q1 2018 Q1 2019 (€ million) > innogy dividend accounted for in Q2 2019 299 Adj. EBITDA 510 > Changes in provisions: Seasonal pattern of Change in provisions & addi
Slide 12: Increased net debt mainly due to outflow of variation margins and call of GBP hybrid
Increased net debt mainly due to outflow of variation margins and call of GBP hybrid Development of net debt (RWE stand-alone) (€ million) 2,280 138 2,418 -484 0 -36 2,387 25 391 4,701 Net debt First-time Net debt Distributable Dividend Financial Other Change in Change in Net debt 31 Dec 18 applicat
Slide 13: RWE stand-alone – outlook for 2019
RWE stand-alone – outlook for 2019 FY 2018 FY 2019e Positive negative impact on earnings. €1.2 bn – €1.5 bn Adj. EBITDA €1.5 bn -€0.6 bn Adj. depreciation > Slight increase among others due to implementation of IFRS 16 -€0.2 bn Adj. net financial result > Stable development expected -€0.1 bn Adj. ta
Slide 14: Appendix
Appendix RWE AG | Q1 2019 Conference Call | 15 May 2019 Page 13
Slide 15: Reconciliation to adjusted net income
Reconciliation to adjusted net income RWE stand-alone Q1 2019 Q1 2018 change (€ million) Reported Adjustments Adjusted Adjusted Adjusted Adjusted EBITDA 510 - 510 299 211 Depreciation -159 - -159 -128 -31 Adjusted EBIT 351 - 351 171 180 Non-operating result -11 +11 - - - Financial result -79 +44 -35
Slide 16: Income statement Q1 2019
Income statement Q1 2019 (€ million) RWE stand-alone RWE Group Revenue (including natural gas tax/electricity tax) 3,566 3,908 Natural gas tax/electricity tax -40 -39 Revenue 3,526 3,869 Other operating result 172 188 Cost of materials -2,793 -2,819 Staff costs -481 -523 Depreciation, amortisation a
Slide 17: Balance sheet as at 31 March 2019
Balance sheet as at 31 March 2019 (€ million) RWE stand-alone RWE Group Assets Intangible assets 1,040 2,214 Property, plant and equipment 6,793 12,988 Investments accounted for using the equity method 727 1,487 Other financial assets1 16,740 402 Inventories 1,127 1,179 Financial receivables 5,081 2
Slide 18: Net debt as at 31 March 2019
Net debt as at 31 March 2019 (€ million) RWE stand-alone RWE Group Cash and cash equivalents 4,036 4,384 Marketable securities 2,423 2,423 Other financial assets 5,059 2,565 of which: financial receivables against innogy 705 - Financial assets 11,518 9,372 Bonds, other notes payable, bank debt, comm
Slide 19: Net debt of continuing operations increased by €3.4 billion
Net debt of continuing operations increased by €3.4 billion due to negative free cash flow and purchase of IGH Development of net debt (RWE Group) – continuing operations only (€ billion) 4.4 0.3 4.7 1.8 0.2 0.1 0.2 0.4 0.7 8.1 Net debt First-time Net debt Cash flows Capex on Dividends Change in Cha
Slide 20: 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 80 100 NL 60 80 40 60 UK Germany 20 40 0 20 Mai'17 Mai'18 Mai'19 Mai'17 Mai'18 Mai'19 Coal prices – API2 Cal-ahead Gas prices – TTF Cal-ahead Carbon prices - EU
Slide 21: Clean Dark and Spark Spreads – 2018-2020 forwards for Germany, UK and NL
Clean Dark (CDS) and Spark Spreads (CSS) – 2018 - 2020 forwards for Germany, UK and NL1 Germany UK2 Netherlands Cal18 Cal19 Cal20 Cal18 Cal19 Cal20 Cal18 Cal19 Cal20 €/MWh €/MWh 15 15 Ø10.76 10 10 Ø8.69 Ø7.67 Ø6.91 Ø6.37 Ø5.07 5 Ø4.68 Ø5.06 5 Ø4.73 Ø4.99 Ø4.18 Ø3.32 Ø2.52 Ø4.16 Ø3.92 Ø1.07 0 0 Ø-0.2
Slide 22: Your contacts @RWE Investor Relations
Your contacts @RWE Investor Relations Important Links Financial Calendar Annual and Interim Reports & Statements 14 August 2019 http://www.rwe.com/ir/reports Interim report on the first half of 2019 ADR programme available Investor and Analyst Conferences 14 November 2019 http://www.rwe.com/ir/inves
Slide 23: RWE AG | Q1 2019 Conference Call | 15 May 2019
RWE AG | Q1 2019 Conference Call | 15 May 2019