Slide 1: Investor and Analyst H1 2016 Conference Call
Investor and Analyst H1 2016 Conference Call Essen, 11 August 2016 Bernhard Günther Stephan Lowis Chief Financial Officer Vice President Investor Relations and Group Finance
Slide 2: Notice
Notice > This document contains certain forward-looking statements within the meaning of the U.S. federal securities laws. Especially all of the following statements: Projections of revenues, income, earnings per share, capital expenditures, dividends, capital structure or other financial items, sta
Slide 3: Main messages for H1 2016
Main messages for H1 2016 Financial performance for the first half of fiscal year 2016: EBITDA -5.5%, operating result -7.2%, adjusted net income +10.1% Supply UK: turnaround well on track Group earnings outlook for 2016 confirmed Higher net debt due to negative cash flow and higher pension provisio
Slide 4: Development of operating result in H1 2016
Development of operating result in H1 2016 … by division (-€146 million; -7.2%) Conventional Power Generation: Cost reductions and one-off effects. € million H1 2015 2,030 Renewables: Moderately below previous year, due to lower wholesale prices and absence of Conventional positive one-off as in pre
Slide 5: Development of the earnings figures in H1 2016
Development of the earnings figures in H1 2016 +/- vs. Non-operating result: Positive impact € billion H1 2016 H1 2015 from absence of provision for legal risks in 2015; impairment on German gas EBITDA 3.0 -0.2 storage assets. Depreciation -1.1 0.0 Financial result: Among others mainly impacted by l
Slide 6: Development of cash flows from operating activities
Development of cash flows from operating activities Strong decline in cash flows1 driven by changes in working capital € billion 0.7 -0.3 -0.2 0.0 -0.9 -0.6 +0.4 -0.1 -1.0 CFOA1 Higher Lower Other Higher Phasing out of Increased Other CFOA1 H1 2015 current generation variation working capital tax H1
Slide 7: Development of net debt
Development of net debt1 Higher net debt due to negative cash balance and interest driven higher pension provisions € billion Cash flows Capex on Dividends Divestments Change Others from opera- property, plant in pension, including ting activities and equipment nuclear, f/x effects and intangible mi
Slide 8: Outlook for 2016 confirmed
Outlook for 2016 confirmed 2015 reported 2016e1 € million EBITDA 7,017 5,200 – 5,500 Operating 3,837 2,800 – 3,100 result Adjusted 1,125 500 – 700 net income Dividend2 Common shares: - Oriented towards growth opportunities, indebtedness and Preferred shares: €0.13 earnings situation. 1 The outlook a
Slide 9: RWE's 2016 divisional outlook for the operating result
RWE’s 2016 divisional outlook for the operating result € million 20151 2016 forecast2 Conventional Power Generation3 596 Significantly below 2015 Renewables 488 Significantly below 2015 Trading/Gas Midstream 156 Significantly below 2015 Grids/Participations/Other 1,955 Significantly below 2015 Suppl
Slide 10: innogy's 2016 and 2017 outlook for EBITDA
innogy’s 2016 and 2017 outlook for EBITDA 2015 2016 forecast 2017 forecast (€ million) (€ billion) (€ billion) Renewables 818 0.6 – 0.8 Grid & Infrastructure 2,878 2.5 – 2.7 Retail 988 1.0 – 1.2 Total 4,521 4.1 – 4.4 4.3 – 4.7 RWE AG | H1 2016 Conference Call | 11 August 2016 10
Slide 11: Back-up charts
Back-up charts
Slide 12: Performance of the Conventional Power Generation Division
Performance of the Conventional Power Generation Division Jan – June: operating result: +34% (+€100 million) € million + Efficiency improvements 290 390 + Lower depreciation + Income from sale of real estate + Lower nuclear fuel tax 2015 2016 - Lower realised electricity generation spreads Outlook f
Slide 13: RWE's forward hedging of conventional electricity production
RWE’s forward hedging of conventional electricity production (German, Dutch and UK portfolio) As of 30 June 2016 >30% >20% >40% >10% >40% >10% >60% >10% >60% >20% >80% >40% >90% >60% >90% >80% >90% >90% 2016 forward 31 Dec. 2013 31 March 2014 30 June 2014 30 Sep. 2014 31 Dec. 2014 31 March 2015 30 J
Slide 14: Clean Dark and Spark Spreads – 2015-2017 forwards
Clean Dark (CDS) and Spark Spreads (CSS) – 2015 - 2017 forwards for Germany, UK and Netherlands1 Germany UK2 Netherlands Cal15 Cal16 Cal17 Cal15 Cal16 Cal17 Cal15 Cal16 Cal17 €/MWh €/MWh 20 20 Ø16.97 15 15 Ø10.52 Ø11.21 10 10 Ø9.18 Ø6.63 Ø5.80 Ø5.50 Ø7.36 5 5 Ø4.83 Ø3.48 Ø3.65 Ø4.86 0 0 Ø-1.18 Ø-4.3
Slide 15: Performance of the Renewables Division
Performance of the Renewables Division Jan - June: operating result: -6.4% (-€15 million) € million - Lower revenues due to lower wholesale prices 234 - Book gain from disposal of grid infrastructure of Gwynt y Môr in 2015 219 + Increased earnings contribution from Nordsee Ost and Gwynt y Môr offsho
Slide 16: Performance of the Trading/Gas Midstream Division
Performance of the Trading/Gas Midstream Division Jan - June: operating result: -€229million € million Trading: 73 - Significantly lower earnings from trading activities -156 2015 2016 Outlook for fiscal 2016: significantly below previous year € million Trading: 156 - Lower earnings after weak perfo
Slide 17: Performance of Grids/Participations/Other Division
Performance of Grids/Participations/Other Division Jan - June: operating result: -5.4% (-€52 million) € million - Increased costs to operate and maintain the distribution grid 968 916 - Provision for early retirement programme in Germany + Positive weather effect in CZ gas business 2015 2016 Outlook
Slide 18: Performance of the Supply Division I
Performance of the Supply Division I Jan - June: operating result: +3.9% (+€24 million) € million + Lower commodity procurement costs Germany: 616 640 - Higher grid fees, taxes and levies could only partly be passed on Netherlands: 2016 + Improved earnings in business with household customers 2015 -
Slide 19: Performance of the Supply Division II
Performance of the Supply Division II Outlook for fiscal 2016: in the order of 2015 € million East: 830 - VSE: One-off effect from asset revaluation linked to the full consolidation in 2015 (-€42 million) + UK: 2015 2016e + Improved earnings from operating activities and restructuring programme RWE
Slide 20: Financial liabilities and assets
Financial liabilities and assets (Excluding hybrid capital as of 30 June 2016) Financial liabilities Financial assets Split of € billion € billion securities 20.7 20 20 4.8 16.0 11% 1.0 15 1.8 15 1.4 0.5 11.9 12.3 0.7 0.5 10 10 2.7 2.7 13.6 13.6 0.8 0.8 4.7 5 5 3.8 7.9 8.1 0.4 0.2 0.4 0.5 0.2 0 Shor
Slide 21: Capital market debt maturities and sources of financing
Capital market debt maturities and sources of financing Capital market debt maturities1 Sources of funding1 € billion 2.0 18.0 Syndicated loan facility €0.0bn out of €4.0bn 2,0 18,0 (until March 2021) (Back up liquidity) 14.8 1,5 1.5 13,5 13.5 Commercial papers $3.4 / €3.1bn out of $5.0bn 1,0 1.0 9,
Slide 22: Capital market debt: Currency and interest exposure
Capital market debt: Currency and interest exposure (as of 30 June 2016) Currency exposure1 Interest exposure2 20% 39% 61% 80% € Fixed interest payments £ Floating interest payments (fixing expiry ≤ 1 year) 1 Capital market debt (senior bonds and hybrids) including cross-currency swaps. Total €14.6b
Slide 23: Keep up with RWE …
Keep up with RWE … Follow us on twitter.com/RWE_IR and have a look at www.rwe.com/ir Important links Financial Calendar Annual and Interim Reports 14 November 2016 http://www.rwe.com/ir/reports/ Interim Report on the first three quarters of 2016 Investor and Analyst Conferences 14 March 2017 http://
Slide 24: RWE Investor Relations – contacts
RWE Investor Relations – contacts Contacts for Institutional Investors & Financial Analysts Dr. Stephan Lowis Martin Vahlbrock Gunhild Grieve Dr. Holger Perlwitz Vice President Investor Relations Tel.: +49 201 12-15055 Tel.: +44 207 015-5459 Tel.: +49 201 12-15141 and Group Finance martin.vahlbrock@