Uniper Se · XETR:UN0

Uniper — Q1 2017 Earnings Presentation

30 slides from Uniper's earnings presentation, May 9, 2017

  1. Slide 1: Q1 2017 Interim results

    Q1 2017 Interim results Christopher Delbrück – CFO 09 May 2017

  2. Slide 2: Agenda

    Agenda 1. Q1 2017 – Highlights and financial results Christopher Delbrück – CFO 2. Appendix

  3. Slide 3: Highlights of Q1 2017 – Ticking many boxes

    Highlights of Q1 2017 – Ticking many boxes Action Deleveraging completed following closing of Yuzhno Russkoye plan transaction Rating S&P raised its outlook to ‘positive’ from ‘stable’, with upgrade envisaged post Yuzhno Russkoye deal closing, all else equal Earnings Solid operating results in Q1 20

  4. Slide 4: Stabilization continues in commodity and FX markets

    Stabilization continues in commodity and FX markets Power prices (Baseload) Gas price (TTF) EUR/MWh EUR/MWh 35 20 Germany 30 18 April 2017 April 2017 25 16 April 2016 20 14 April 2016 Nordic 15 12 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 Power prices (spreads) RUB/Euro FX rate EUR/MWh

  5. Slide 5: Nord Stream 2 securing European gas supplies and a stable return for Uniper

    Nord Stream 2 securing European gas supplies and a stable return for Uniper Nord Stream 2 pipeline project overview Key highlights Project company Shareholder Provisional Nord Stream 2 Route Equity Gas Transport Agreement (GTA) Junior loans European project sponsors Project Finance Participation  I

  6. Slide 6: Key progress in Q1 2017

    Key progress in Q1 2017 Yuzhno Russkoye sale in Uniper’s credit quality further execution mode improving  Sale announced on 5 March 2017  S&P revises outlook to ‘positive’  Purchase price of €1,749m in cash  Outlook reflects possibility of an upgrade because of a  Closing is subject to conditio

  7. Slide 7: Q1 2017 key financials in line with forecast

    Q1 2017 key financials in line with forecast Adj. EBIT(DA) Economic net debt Key highlights €bn €bn Adj. EBIT(DA) down 1.1  Driven by Gazprom LTC-settlement in 2016 and less pronounced gas optimization results 0.7  … partly offset by lapse of one-off at Unipro 4.2 0.9 0.9 3.0 0.5 0.5 Strong operat

  8. Slide 8: Group EBIT(DA) in Q1 2017 on track to reach full year goals

    Group EBIT(DA) in Q1 2017 on track to reach full year goals Adj. EBIT development by segment in Q1 2017 Highlights €m +7 European Generation +147 +5  Outright fleet benefitting from good nuclear output in Sweden -516 871  Lower hydro volumes compared to 514 extraordinary high production Q1 2016 

  9. Slide 9: European Generation – Robust earnings trend

    European Generation – Robust earnings trend Adj. EBIT development by sub-segment in Q1 2017 Highlights €m Hydro +7 +12  Negative volume effects compared to +5 extraordinary high Q1 2016 production -2 -8  Additional spot sales at preferable 219 226 market prices Nuclear  Positive volume effect, si

  10. Slide 10: Global Commodities – Gas business the segment's main driver

    Global Commodities – Gas business the segment’s main driver Adj. EBIT development by sub-segment in Q1 2017 Highlights TBU €m Gas - 516  Lapse of one-offs following Gazprom provision release in 2016  Lower (extraordinary) optimization 746 gains +2 +18 +15 -551 230 Yuzhno Russkoye (YR)  Earnings u

  11. Slide 11: International Power – Solid operating result

    International Power – Solid operating result (not affected by one-offs) Adj. EBIT development by sub-segment in Q1 2017 Highlights TBU €m + 147 International Power  Stable underlying business in a favorable regulated market +150 environment -3 92 Russia -55  Lapse of write-off on Berezovskaya III

  12. Slide 12: High seasonal Adj. EBIT to OCF conversion

    High seasonal Adj. EBIT to OCF conversion Adj. EBIT to operating cash flow reconciliation €m +299 +1 +111 -2 -15 +175 -181 919 902 689 514 Adj. EBIT Depreci- Adj. EBITDA Non-cash Provision Changes in Payments OCFbIT Interest Tax OCF Q1 2017A ation and Q1 2017A effective utilization working related t

  13. Slide 13: Economic net debt benefits from strong seasonal OCF

    Economic net debt benefits from strong seasonal OCF Economic net debt €bn 4.2 1.0 +0.1 -0.1 -0.9 3.0 0.8 -0.3 1.0 0.8 2.4 1.2 Economic net debt OCF Capex Pension Other 3 Economic net debt YE 2016 Q1 2017 AROs1 Pension Net financial position2 1. Includes nuclear and other asset retirement obligations

  14. Slide 14: 2017 EBIT(DA) Outlook (reiterated)

    2017 EBIT(DA) Outlook (reiterated) Adj.EBIT Key considerations TBU €bn 1.4 European Generation 1.2  Further decrease of achieved prices for outright 0.8 fleet 0.9  Swedish hydro and nuclear tax reduction  UK, France capacity payments  Lapse of restructuring one-off and Swedish nuclear provision

  15. Slide 15: Agenda

    Agenda 1. Q1 2017 – Highlights and financial results Christopher Delbrück – CFO 2. Appendix

  16. Slide 16: Markets – Power prices and commodities

    Markets – Power prices and commodities Germany – Baseload power 2018 Germany – CDS, CSS 2018 Gas Europe – summer/winter spread €/MWh $/ton €/MWh €/MWh 35 75 10 2.0 30 60 0 1.5 25 45 -10 1.0 20 15 30 -20 0.5 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jan-15 Jul-15 Jan-16 Ju

  17. Slide 17: Uniper Group – Outright power hedging in Germany and Nordic

    Uniper Group – Outright power hedging in Germany and Nordic Outright position – baseload power price >80% >80% >80% €/MWh >90% >85% >50% 35 30 25 20 Status: March 2017 15 2017 2018 2019 Achieved price (Germany) Hedge ratio Germany Achieved price (Sweden) Hedge ratio Sweden Uniper SE, Presentation Q1

  18. Slide 18: Uniper Group – Adjusted EBIT(DA) by segment

    Uniper Group – Adjusted EBIT(DA) by segment Adj. EBITDA €m Q1 2017 Q1 2016 % European Generation 343 368 -6.8 Global Commodities 260 780 -66.7 International Power 117 -33 - Administration / Consolidation -31 -36 -13.9 Total 689 1,079 -36.1 Adj. EBIT €m Q1 2017 Q1 2016 % European Generation 226 219 3

  19. Slide 19: Uniper Group – Adjusted EBIT(DA) by sub-segment

    Uniper Group – Adjusted EBIT(DA) by sub-segment Adj. EBITDA and EBIT Q1 2017 Q1 2016 Q1 2017 Q1 2016 €m Adj. EBITDA Adj. EBITDA Adj. EBIT Adj. EBIT European Generation Hydro 77 86 64 72 Nuclear 69 62 53 47 Fossil 211 233 124 112 Other/ Consol. -14 -13 -15 -12 Subtotal 343 368 226 219 Global Commodit

  20. Slide 20: Uniper Group – Key P&L items at a glance

    Uniper Group – Key P&L items at a glance Key P&L items €m Q1 2017 Q1 2016 Sales 22,253 19,564 Adjusted EBITDA 689 1,079 Economic depreciation and amortization / reversals -175 -208 Adjusted EBIT 514 871 Non-operating adjustments 431 -35 EBIT 945 836 Net interest income / expense 41 -146 Income taxes

  21. Slide 21: Uniper Group – Details on non-operating adjustments

    Uniper Group – Details on non-operating adjustments Non-operating adjustments €m Q1 2017 Q1 2016 Net book gains / losses 0 522 Fair value measurement of derivative financial instruments 524 -459 Restructuring / cost management expenses -2 -16 Non-operating impairment charges / reversals -35 -1 Misce

  22. Slide 22: Uniper Group – Adjusted EBITDA to net income

    1,362 Uniper Group – Adjusted EBITDA to net income Reconciliation Adj. EBITDA to net income €m +524 +18 -73 -20 -137 -175 689 -93 733 514 Adj. Depreciation Adj. Economic MTM Impairments Interest Other Taxes on Net EBITDA and EBIT interest, taxes, Derivatives and provision result non- Income1 amortiz

  23. Slide 23: Uniper Group – Cash effective investments

    Uniper Group – Cash effective investments Investments by segment €m Q1 2017 Q1 2016 % European Generation 89 77 15.6 Global Commodities 10 21 -52.4 International Power 23 21 9.5 Administration / Consolidation 18 2 - Total 140 121 15.7 Investment split – maintenance and growth €m Q1 2017 Q1 2016 % Ma

  24. Slide 24: Uniper Group – Consolidated balance sheet (1/2)

    Uniper Group – Consolidated balance sheet (1/2) Balance sheet of the Uniper Group – assets €m 31 Mar 2017 31 Dec 2016 Goodwill 2,305 2,701 Intangible assets 905 2,121 Property, plant and equipment 11,803 11,700 Companies accounted for under the equity method 591 827 Other financial assets 697 728 Eq

  25. Slide 25: Uniper Group – Consolidated balance sheet (2/2)

    Uniper Group – Consolidated balance sheet (2/2) Balance sheet of the Uniper Group – equity and liabilities €m 31 Mar 2017 31 Dec 2016 Capital stock 622 622 Additional paid-in capital 10,825 10,825 Retained earnings 4,943 4,156 Accumulated other comprehensive income -3,118 -3,382 Equity attributable

  26. Slide 26: Uniper Group – Net financial position

    Uniper Group – Net financial position Net financial position of the Uniper Group €m 31 Mar 2017 31 Dec 2016 Liquid funds 626 341 Non-current securities 103 160 Financial liabilities -1,934 -2,870 Net financial position -1,205 -2,369 Provisions for pensions and similar obligations -740 -785 Asset ret

  27. Slide 27: Uniper Group – Consolidated statement of cash flows

    Uniper Group – Consolidated statement of cash flows Statement of cash flows of the Uniper Group €m Q1 2017 Q1 2016 Net income / loss 751 646 Depreciation, amortization and impairment of intangibles / property, plant, equipment 212 212 Changes in provisions -46 -137 Changes in deferred taxes 126 -4 O

  28. Slide 28: Contact your Investor Relations team

    Uniper – Contact your Investor Relations team Uniper SE Udo Giegerich Marc Koebernick Investor Relations Executive Vice President Head of Investor Relations (SVP) E.ON-Platz 1 Group Finance & Investor Relations +49 211 4579 4489 40479 Duesseldorf udo.giegerich@uniper.energy marc.koebernick@uniper.en

  29. Slide 29: Financial calendar & further information

    Financial calendar & further information Financial calendar 08 June 2017 2017 Annual Shareholders Meeting (Grugahalle, Essen) 08 August 2017 Interim Report January – June 2017 07 November 2017 Quarterly Statement January – September 2017 Further information https://ir.uniper.energy

  30. Slide 30: Disclaimer

    Disclaimer This document and the presentation to which it relates contains information relating to Uniper SE, ("Uniper" or the "Company") that must not be relied upon for any purpose and may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for

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