Rwe Ag · XETR:RWE
Rwe — Q1-Q3 2015 Earnings Presentation
24 slides from Rwe's earnings presentation, Nov 12, 2015
Slide 1: Investor and Analyst Q1-Q3 2015 Conference Call
Investor and Analyst Q1-Q3 2015 Conference Call Essen, 12 November 2015 Bernhard Günther Stephan Lowis Chief Financial Vice President Officer Investor Relations
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains certain forward-looking statements within the meaning of the US federal securities laws. Especially all of the following statements > Projections of revenues, income, earnings per share, capital expenditures, dividends, capital structure or other
Slide 3: Main messages for Q3 2015
Main messages for Q3 2015 Financial performance in the first nine months of 2015 in line with expectations: EBITDA -6%, operating result -9%, adjusted net income -29%. Group outlook for 2015 confirmed. German energy policy: − “Stress test” results - nuclear provisions fully reflect future obligation
Slide 4: Development of operating result in Q1-Q3 2015
Development of operating result in Q1-Q3 2015 Earnings in Conventional Power Generation under … by division (-€260 million; -9%) pressure mainly due to declining generation € million margins. Q1-Q3 2014 2,908 Lower earnings from the disposal of grid assets in Germany but better performance in Supply
Slide 5: Development of the earning figures in Q1-Q3 2015
Development of the earning figures in Q1-Q3 2015 +/- vs. Financial result improved mainly due € billion Q1-Q3 2015 Q1-Q3 2014 to positive one-off from the sale of securities and improved interest EBITDA 4.4 -0.3 accretion to long-term provisions. As a result of merging fully owned Depreciation -1.8
Slide 6: Development of cash flows from operating activities
Development of cash flows from operating activities Strong decline in cash flows1 driven by movements in working capital € billion 4.8 -0.5 +0.4 -0.4 -1.1 -0.8 -0.2 2.2 CFOA1 CFOA1 Procure- Change in Q1-Q3 2014 Temporary Lower use Margin Others Q1-Q3 2015 ment of accounts refunding of of CO2- declin
Slide 7: Strong improvement of net debt after successful disposal of RWE Dea
Strong improvement of net debt after successful disposal of RWE Dea € billion Cash flows Capex on Dividends1 Divestments1 Change Others from opera- property, plant in pension, including ting activities1 and equipment nuclear, f/x effects and intangible mining assets and provisions1 financial assets1
Slide 8: Outlook for 2015 confirmed
Outlook for 2015 confirmed € million EBITDA 7,131 6,100 – 6,400 Operating 4,017 3,600 – 3,900 result Adjusted 1,282 1,100 – 1,300 net income1 Dividend €1.00/share Oriented towards growth opportunities, indebtedness and earnings situation. The dividend for 2014 serves as a reference point. 2014 2015e
Slide 9: 2015 divisional outlook for the operating result
2015 divisional outlook for the operating result € million 2014 2015 forecast Conventional Power Generation1 979 Significantly below 2014 Supply/Distribution Networks Germany 1,871 Moderately below 2014 Supply NL/B 146 Significantly above 2014 Supply UK 227 Significantly below 2014 Central Eastern a
Slide 10: Back-up Charts
Back-up Charts
Slide 11: Performance of the Conventional Power Generation Division
Performance of the Conventional Power Generation Division January – September: operating result: -52% (-€406 million) € million - Lower realised electricity generation spreads 782 + Efficiency improvements 376 2014 2015 Outlook for fiscal 2015: significantly below previous year € million - Lower rea
Slide 12: RWE's forward hedging of conventional electricity production
RWE’s forward hedging of conventional electricity production (German, Dutch and UK portfolio) As of 30 September 2015 >30% >10% >40% >10% >40% >20% >50% >30% >60% >40% >60% >50% >80% >60% >90% >70% >90% >70% 2015 forward 31 Dec. 2012 31 March 2013 30 June 2013 30 Sep. 2013 31 Dec. 2013 31 March 2014
Slide 13: Clean Dark and Spark Spreads – 2014-2016 forwards for Germany, UK and Netherlands
Clean Dark (CDS) and Spark Spreads (CSS) – 2014 - 2016 forwards for Germany, UK and Netherlands1 Germany UK2 Netherlands Cal14 Cal15 Cal16 Cal14 Cal15 Cal16 Cal14 Cal15 Cal16 €/MWh €/MWh Ø22.49 20 20 Ø16.97 15 15 Ø11.36 Ø11.43 Ø11.60 10 10 Ø8.79 Ø 4.86 Ø9.18 Ø6.63 5 5 Ø3.65 Ø2.03 Ø5.68 0 0 Ø -4.87 -
Slide 14: Performance of the Supply/Distribution Networks Germany Division
Performance of the Supply/Distribution Networks Germany Division January – September: operating result: -8.8% (-€124 million) € million - Lower earnings from the disposal of grid assets 1,408 1,284 + Weather-induced higher gas demand 2014 2015 Outlook for fiscal 2015: moderately below previous year
Slide 15: Performance of the Supply Netherlands/Belgium Division (Essent)
Performance of the Supply Netherlands/Belgium Division (Essent) January – September: operating result: +72% (+€69 million) € million + Weather-induced higher gas demand + Marketing of new supply offerings 165 96 2014 2015 Outlook for fiscal 2015: significantly above previous year € million + Normali
Slide 16: Performance of the Supply United Kingdom Division (RWE npower)
Performance of the Supply United Kingdom Division (RWE npower) January – September: operating result: -173% (-€156 million) € million + Lower costs for ‘Energy Companies Obligation’ (ECO) programme + Lower gas procurement costs, partly offset by lower gas tariff 90 - Significant process and system-r
Slide 17: Performance of the Central Eastern and South Eastern Europe Division
Performance of the Central Eastern and South Eastern Europe Division January – September: operating result: +34% (+€182 million) € million Slovakia: + VSE: One-off effect from asset revaluation linked to the full consolidation Czech Republic: 710 528 - Lower gas storage margins + Improved regulatory
Slide 18: Performance of the Renewables Division (RWE Innogy)
Performance of the Renewables Division (RWE Innogy) January – September: operating result: +866% (+€251 million) € million 280 + Increased earnings contribution from growth investments, mainly Nordsee Ost and Gwynt y Môr and sale of grid connection asset of the latter project + Weather induced highe
Slide 19: Performance of the Trading/Gas Midstream Division (RWE Supply & Trading)
Performance of the Trading/Gas Midstream Division (RWE Supply & Trading) January – September: operating result: -43% (-€96 million) € million Trading: - Trading activities did not reach high earnings level of 2014 Supply: Still suffering from out of the money long-term gas storage contracts 222 126
Slide 20: Financial liabilities and assets
Financial liabilities and assets (Excluding hybrid capital as of 30 September 2015) Financial liabilities Financial assets Split of € billion € billion securities 20 19.1 20 16.9 2.2 20% 1.5 1.7 15 0.3 15 1.3 11.0 11.5 0.9 0.6 10 2.6 2.6 10 0.7 0.7 14.1 14.9 5 7.1 7.3 5 0.5 2.2 0.3 0.4 0.3 0.7 0 Sho
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 2,0 18.0 18,0 Syndicated loan facility €0.0 bn out of €4.0 bn (until March 2020) (Back up liquidity) 1,5 1.5 13,5 13.5 Commercial papers $0.0 bn out of $5.0 bn 1,0 1.0 9,0 9.0 (u
Slide 22: Capital market debt currency and interest exposure
Capital market debt currency and interest exposure (as of 30 September 2015) Currency exposure1 Interest exposure2 8% 39% 1 61% 92% € Fixed interest payments £ Floating interest payments (fixing expiry <=1 year) 1 Capital market debt (senior bonds and hybrids) including cross-currency swaps. 2 Capit
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 http://www.rwe.com/ir/reports/ 08 March 2016 Annual Report on fiscal 2015 Investor and Analyst Conferences 20 April 2016 http://www.rwe.com/ir/investor-a
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 Tel. +49 201 12-15031 martin.vahlbr