Rwe Ag · XETR:RWE
Rwe — Investor Presentation (December 2015)
20 slides from Rwe's investor presentation, Dec 1, 2015
Slide 1: Transforming RWE
Transforming RWE Essen, 01 Dec 2015 Peter Terium Bernhard Günther Stephan Lowis Chief Executive Chief Financial Vice President Officer 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: Formation of unique and leading European utility
Formation of unique and leading European utility > RWE to establish new leading European utility comprising the grid, retail and renewables businesses RWE AG NewCo > Conventional power generation shareholders shareholders and trading businesses retained as separate functional units with 100% RWE AG
Slide 4: Entering the next stage
Entering the next stage Execution of Implementation of Transformation of efficiency programme lean functional setup corporate structure > In 2012, RWE started a > Decision to closer align > Consequently, RWE is now Group-wide efficiency corporate setup with business transforming its structure to pro
Slide 5: New structure provides three upsides for RWE AG
New structure provides three upsides for RWE AG Clear strategic > Creation of homogenous business portfolios with clear strategic focus focus > Increased management attention to address specific challenges and opportunities of different businesses Value > Unlock value through enhanced transparency v
Slide 6: NewCo: Unique opportunity to invest in leading European utility
NewCo: Unique opportunity to invest in leading European utility of tomorrow’s energy world Unique new utility stock Attractive financial profile > Unique new utility stock with exposure only to > Strong and stable cash flow generation stable European markets > ~65% EBITDA derived from regulated > Le
Slide 7: NewCo: Strong downstream business with attractive renewables footprint
NewCo: Strong downstream business with attractive renewables footprint Grid Retail Renewables > RWE operates 550,000 km of > Strong retail organisation with > Renewables portfolio of more grid assets in five European 23m customers in 12 European than 3.5 GW mainly in six markets (GER, PL, CZ, HU, SK
Slide 8: NewCo: Solid platform for growth
NewCo: Solid platform for growth Renewables > Execution of existing offshore wind pipeline and development of projects > Expansion of onshore wind capacity > Build up of utility scale PV business > Development of new products and business models Grid > Maintenance and expansion of distribution grid
Slide 9: RWE AG: Focused business portfolio with clear management mandate
RWE AG: Focused business portfolio with clear management mandate Conventional Power Generation Supply & Trading > Highly efficient and modernised power > Commercial asset optimisation of plant portfolio generation fleet – full exploitation of optionality > Financially manageable phase-out of nuclear
Slide 10: RWE AG: Focus on maintaining positive free cash flow in conventional power generation
RWE AG: Focus on maintaining positive free cash flow in conventional power generation German base load forward Opportunity of power price increase Measures to offset commodity price drop Early 2015: €32/MWh1 > Further optimisation of maintenance strategy including reduction of day-to-day capex and o
Slide 11: Two companies with distinct financial profile for investors
Two companies with distinct financial profile for investors Listed Entity RWE AG Listed Entity NewCo Full Consolidation of NewCo in RWE AG €6.1bn-6.4bn €4.3bn-4.5bn1 2015 EBITDA outlook NewCo Grid Generation & Retail Trading Renewables Capex outlook Mainly maintenance ~1.5x depreciation Leverage tar
Slide 12: Majority of overall capex will be invested in NewCo
Majority of overall capex will be invested in NewCo – IPO proceeds to strengthen NewCo growth Overall annual capex spend post NewCo IPO Average annual capex Indicative split spend of Group post IPO € bn Renewables IPO proceeds will be Growth exclusively used for growth NewCo Grid investments at NewC
Slide 13: Efficient capital structure and allocation
Efficient capital structure and allocation RWE AG (ex NewCo) NewCo Conventional Supply & Trading Grid Retail Renewables power generation Nuclear and Senior bonds Pension and Pension and Intercompany Other financial mining and other provisions other provisions loans debt provisions hybrid capital Eco
Slide 14: Transformation already started
Transformation already started Today Strategic Creation of IPO of NewCo transformation NewCo > Internal re-organisation and > Foundation of NewCo > Analyst presentation streamlining of legal entities > Management roadshows > Development of corporate > Discussions with rating governance model > Listi
Slide 15: Investor summary
Investor summary RWE to establish new leading European utility comprising the grid, retail and renewable businesses Listing of ~10% of NewCo via primary offering envisaged The new structure will yield several key benefits for RWE AG: Increased strategic focus, value enhancement, improved financial f
Slide 16: Backup
Backup RWE AG | Transforming RWE | 01 Dec 2015 16 16
Slide 17: Grid business with excellent track record and growing RAB
Grid business with excellent track record and growing RAB Key facts, 2014 Business highlights > Grid length (thousand km) Position > Electricity 440 > Leading positions in core markets (e.g., largest electricity > Gas 110 DSO in Germany, largest gas DSO in Czech Republic) > Strong track record in gr
Slide 18: Retail activities well-positioned in many countries
Retail activities well-positioned in many countries Key facts, 2014 Business highlights > Customers (million) Position > Electricity, of which 16.0 > Largest electricity retailer in Germany, NL/Belgium and > Germany 6.7 amongst top 3 in UK and Hungary > UK 3.4 > Largest gas retailer in Czech Republi
Slide 19: Innogy amongst Top 5 offshore wind players
Innogy amongst Top 5 offshore wind players, heading to leverage pipeline for future growth Key facts Business highlights > Installed capacity (GW) Current position > Renewables, of which >3.5 > Amongst top 5 players in offshore wind globally; Gwynt > Offshore wind >1.0 y Môr and Nordsee Ost recently
Slide 20: Overview of renewable growth projects
Overview of renewable growth projects Projects in development Overview of key project Offshore wind Offshore wind > Galloper (UK, 20171) – 336 MW with Macquarie, Green Investment Bank & Siemens Onshore wind > Nordsee One (GER, 20171) – 332 MW with Northland Power Hydro > Kaskasi II (GER, 20191) – 21