Slide 1: Q1 2021 Results
Q1 2021 Results 12 May 2021 Michael Müller, 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: Q1 2021 – strong & important progress on long-term growth
Q1 2021 – strong & important progress on long-term growth • Adj. EBITDA decreased to €0.9bn mainly due to the one-off from the unprecedented Texas cold snap • FY 2021 outlook and dividend target of €0.90 per share confirmed • Net debt decreased significantly to €2.8 bn at the end of March • Positive
Slide 4: Good operational Q1 performance besides setback in the wind/solar business
Good operational Q1 performance besides setback in the wind/solar business Core adj. EBITDA Q1 2021 vs. Q1 2020, € million -47% 1,042 • Offshore Wind earnings down compared to very 170 strong previous year due to below normal wind conditions 555 217 • Onshore Wind/Solar earnings decreased Supply & T
Slide 5: Well on course to meet 2022 growth target with 3.7GW currently under construction
Well on course to meet 2022 growth target with 3.7GW currently under construction Capacity development Wind/Solar, as of 31 Mar 2021 GW pro rata • Addition: Rampion stake of 80 MW • Farm-down: Raymond West >13.0 1.4 -0.1 0.4 1.7 9.4 8.9 2.0 Sofia -0.5 0.8 Offshore 1.4 Offshore 1.5 Onshore 0.1 Onshor
Slide 6: Great progress in the UK offshore portfolio - FID taken for 1.4GW Sofia project
Great progress in the UK offshore portfolio - FID taken for 1.4GW Sofia project and 3GW seabed on Dogger Bank awarded UK Round 4 Lease Auction Sofia – our largest offshore development project Shallow central area of the Location Key figures North Sea known as Dogger Bank Water depth 15 – 35m Shallow
Slide 7: Offshore Wind: Earnings down due to very high wind conditions last year and below normal wind speeds this year
Core Offshore Wind: Earnings down due to very high wind conditions last year and below normal wind speeds this year Key financials Q1 - Offshore Wind Q1 2021 vs. Q1 2020 € million Q1 2021 Q1 2020 change Very high wind speeds in Q1 2020 Below normal wind speeds in Q1 2021 Adj. EBITDA 297 431 -134 t/o
Slide 8: Onshore Wind/Solar: Earnings far below previous year due to one-off from Texas' extreme cold snap
Core Onshore Wind/Solar: Earnings far below previous year due to one-off from Texas’ unprecedented extreme cold snap Key financials Q1 - Onshore Wind/Solar Q1 2021 vs. Q1 2020 Very high wind speeds in Q1 2020 € million Q1 2021 Q1 2020 change Below normal wind speeds in Q1 2021 in northern Europe Adj
Slide 9: Hydro/Biomass/Gas: Sound earnings on the back of higher income from capacity payments
Core Hydro/Biomass/Gas: Sound earnings on the back of higher income from capacity payments Key financials Q1 - Hydro/Biomass/Gas Q1 2021 vs. Q1 2020 € million Q1 2021 Q1 2020 change Higher income from GB capacity payments Absence of income from Georgia Biomass due to disposal Adj. EBITDA 213 217 -4
Slide 10: Supply & Trading: Very strong trading performance leads to earnings on a par with previous year
Core Supply & Trading: Very strong trading performance leads to earnings on a par with previous year’s high level Key financials Q1 - Supply & Trading Q1 2021 vs. Q1 2020 € million Q1 2021 Q1 2020 change Very strong trading performance partly offset by lower performance of Gas & LNG business Adj. EB
Slide 11: Coal/Nuclear: Solid earnings on the strength of higher realised hedged generation margins
Coal/Nuclear: Solid earnings on the strength of higher realised hedged generation margins Key financials Q1 - Coal/Nuclear Q1 2021 vs. Q1 2020 € million Q1 2021 Q1 2020 change Higher realised hedged generation margins Costs associated with the German coal phaseout Adj. EBITDA 328 282 46 t/o non-recu
Slide 12: Adj. net income as expected and in line with the performance of adj. EBITDA
Adj. net income as expected and in line with the performance of adj. EBITDA Adj. net income, € million Q1 2020 Q1 2021 Adj. EBITDA • Adj. EBITDA excludes non-operating result 1,324 883 Q1 2021 • Financial result mainly adjusted for tax -357 Adj. depreciation -335 interests from tax refunds unrelated
Slide 13: Adj. operating cash flow impacted by seasonal effects in working capital
Adj. operating cash flow impacted by seasonal effects in working capital Reconciliation to adj. operating cash flow, € million Q1 2021 883 • Changes in provisions/(Non-) Cash items among others driven by book gains from the farm-down of -396 Texas wind farms as well as legacy and restructur- ing pro
Slide 14: Net debt decreased due to timing effects from hedging activities and higher discount rates
Net debt decreased due to timing effects from hedging activities and higher discount rates for pension liabilities Development of net debt, € billion Q1 2021 4.4 0.7 0.1 -1.7 -0.7 2.8 Net debt Adj. operating Net cash investments Other changes in Changes in Net debt 31 Dec 20 cash flow net financial
Slide 15: Outlook for fiscal year 2021
Outlook for fiscal year 2021 Core adj. EBITDA: €1.80 – 2.20bn Adj. EBITDA RWE Group: €2.65 – 3.05bn Adj. EBIT: €1.15 – 1.55bn Adj. net income: €0.75 – 1.10bn Dividend target: €0.90 per share 12 May 2021 Q1 2021 Results
Slide 16: Appendix
Appendix 12 May 2021 Q1 2021 Results
Slide 17: Reconciliation to adj. net income
Reconciliation to adj. net income Q1 2021 (€ million) Reported Adjustments Adjusted Adjusted EBITDA 883 - 883 Depreciation -335 - -335 Adjusted EBIT 548 - 548 Non-operating result -17 17 - Financial result 96 -226 -130 Income from continuing 627 -209 418 operations before tax Taxes on income 283 -34
Slide 18: Economic net debt
Economic net debt Net debt (€ million) 31 Mar 2021 31 Dec 2020 +/- Net debt definition Cash and cash equivalents 6,339 4,774 1,565 • Net debt does not Marketable securities 3,099 4,517 -1,418 contain mining Other financial assets 2,556 2,507 49 provisions, which essentially cover our Financial asset
Slide 19: Key sensitivities to our planning assumptions for FY2021
Key sensitivities to our planning assumptions for FY2021 Driver Segment Type Sensitivity Group impact1 Wind levels Offshore Wind P&L +/- 10% production +/- €160 million Onshore Wind/Solar P&L +/- 10% production +/- €100 million Power prices Offshore Wind and Onshore Wind/Solar P&L +/- 10% +/- €70 mi
Slide 20: Your contacts in Investor Relations
Your contacts in Investor Relations Important Links Financial Calendar • Annual and interim reports & statements • 12 August 2021 ADR programme available Interim report on the first half of 2021 • Investor and analyst conferences • 11 November 2021 Further information on our homepage Interim stateme