Slide 1: H1 2020 Results
H1 2020 Results 13 August 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: Successful first half 2020 – continuous improvement of renewables pipeline and FY outlook confirmed
Successful first half 2020 – continuous improvement of renewables pipeline and FY outlook confirmed • Adj. EBITDA for core business up ~9% to €1.5bn versus pro forma 2019, adj. EBITDA of RWE Group at €1.8bn • FY2020 outlook and dividend target of €0.85 per share confirmed. Adj. EBITDA for core busin
Slide 4: Deal to acquire Nordex's 2.7 GW European Onshore Wind/Solar development pipeline underpins future growth
Deal to acquire Nordex’s 2.7 GW European Onshore Wind/Solar development pipeline underpins future growth ambitions We strengthen our European market presence in Onshore Wind/Solar • Market entry in France, an attractive renewables market with ambitious build-out targets by 2030 • Experienced team of
Slide 5: Adj. EBITDA of core business on the rise to €1.5bn in H1
Adj. EBITDA of core business on the rise to €1.5bn in H1 Core adj. EBITDA H1 2020 vs. H1 2019 pro forma, € million +9% 1,497 1,377 322 • Excellent wind conditions in Q1 push Offshore Supply & Trading 461 Wind earnings to high level in H1 324 • Capacity additions and good wind conditions Hydro/Biomas
Slide 6: Further investment decisions for onshore and solar projects of ~200 MW – on track to reach >13 GW target
Core Further investment decisions for onshore and solar projects of ~200 MW – on track to reach >13 GW target Wind/Solar installed capacity increases to 8.9 GW and further 3.1 GW under construction/FID H1 2020 GW pro rata >13.0 • FID for Hickory Park solar farm in US 1.1 0.9 (196 MW), with co-locate
Slide 7: Where are we with our major construction projects?
Core Where are we with our major construction projects? Offshore Wind Onshore Wind Solar Project Triton Knoll Kaskasi Clocaenog Forest Cranell Big Raymond Scioto Ridge Limondale Country Capacity 509 MW 342 MW 96 MW 220 MW 440 MW 250 MW 249 MW pro rata Expected COD Q1 2022 Q4 2022 Q3 2020 Q3 2020 Q4
Slide 8: Offshore Wind: Earnings on the up thanks to excellent wind conditions in Q1
Core Offshore Wind: Earnings on the up thanks to excellent wind conditions in Q1 Key financials H1 - Offshore Wind H1 2020 vs. H1 2019 pro forma pro forma € million H1 2020 H1 2019 change Stronger performance on the back of above average wind speeds in Q1 2020 Adj. EBITDA 585 490 +95 t/o non-recurri
Slide 9: Onshore Wind/Solar: Solid earnings in H1 on the back of capacity additions and better weather conditions
Core Onshore Wind/Solar: Solid earnings in H1 on the back of capacity additions and better weather conditions Key financials H1 - Onshore Wind/Solar H1 2020 vs. H1 2019 pro forma pro forma € million H1 2020 H1 2019 change Increased capacity in Onshore Wind/Solar, Europe and US Adj. EBITDA 273 244 +2
Slide 10: Hydro/Biomass/Gas: Good H1 performance after a strong Q1
Core Hydro/Biomass/Gas: Good H1 performance after a strong Q1 Key financials H1 - Hydro/Biomass/Gas H1 2020 vs. H1 2019 pro forma pro forma € million H1 2020 H1 2019 change Income from GB capacity payments (+€74 million)2 Adj. EBITDA 324 221 +103 t/o non-recurring items - - - Depreciation -169 -159
Slide 11: Supply & Trading: Strong and robust trading performance in the first six months of the year
Core Supply & Trading: Strong and robust trading performance in the first six months of the year Key financials H1 - Supply & Trading H1 2020 vs. H1 2019 pro forma pro forma € million H1 2020 H1 2019 change Strong trading performance as well as good result for gas & LNG business; however, earnings A
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 H1 - Coal/Nuclear H1 2020 vs. H1 2019 pro forma pro forma € million H1 2020 H1 2019 change Higher realised generation margin for outright position Adj. EBITDA 310 148 +162 t/o non-recurring items - - - Production
Slide 13: Adj. net income of ~€0.8bn at solid level as a result of a very good operational performance in H1 2020
Adj. net income of ~€0.8bn at solid level as a result of a very good operational performance in H1 2020 Adj. net income, € million H1 2020 Adj. EBITDA 1,807 • Adj. EBITDA excludes non-operating result H1 2020 • Adj. financial result includes E.ON dividend of €182 Adj. depreciation -719 million as we
Slide 14: Adj. operating cash flow tops €2bn mainly due to good adj. EBITDA
Adj. operating cash flow tops €2bn mainly due to good adj. EBITDA Reconciliation to adj. operating cash flow, € million H1 2020 2,060 • Changes in provisions driven by legacy and 76 -24 1,807 restructuring provisions among others 437 -236 • Positive effects in ‘Changes in operating working capital’
Slide 15: Net debt increase since fiscal 2019 due to timing effects from hedging activities as expected
Net debt increase since fiscal 2019 due to timing effects from hedging activities as expected Development of net debt continuing operations, € billion H1 2020 7.8 6.9 -0.1 1.5 -2.1 0.5 1.0 RWE Adj. operating Net cash Dividend Other changes in Changes in RWE continuing cash flow investments net finan
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 13 August 2020 H1 2020 Results
Slide 17: Appendix
Appendix 13 August 2020 H1 2020 Results
Slide 18: Reconciliation to adj. net income
Reconciliation to adj. net income H1 2020 (€ million) Reported Adjustments Adjusted Adj. EBITDA 1,807 - 1,807 Depreciation -719 - -719 Adj. EBIT 1,088 - 1,088 Non-operating result 662 -662 - Financial result -304 +164 -140 Income from continuing 1,446 -498 948 operations before taxes Taxes on income
Slide 19: Economic net debt
Economic net debt Net debt 1 (€ million) 30 Jun 2020 31 Dec 2019 +/- New definition Cash and cash equivalents 3,381 3,192 189 • Net debt no longer Marketable securities 2,579 3,523 -944 contains mining provisions, which Other financial assets 2,798 2,383 415 essentially cover our Financial assets 8,
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 • 12 November 2020 http://www.rwe.com/ir/reports ADR programme available Interim statement on the first three quarters of 2020 • Investor and analyst conferences • 16 March 2021 http://ww