Slide 1: Investor and Analyst Conference Call Q3 2016
Investor and Analyst Conference Call Q3 2016 Essen, 14 November 2016 Markus Krebber Gunhild Grieve Chief Financial Officer Head of Investor Relations
Slide 2: Notice
Notice 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 promise f
Slide 3: Main messages
Main messages > Successful innogy IPO; €2.6bn in proceeds for RWE AG > Effective separation of RWE AG and innogy SE > RWE Group’s operational performance for first nine months of fiscal year 2016 in line with expectations > Outlook for 2016 Group earnings confirmed > Publication of draft law for tra
Slide 4: RWE after the innogy IPO
RWE after the innogy IPO > Proceeds of approx. €2.6bn for RWE AG innogy RWE AG from sale of ~13.2% of shareholders shareholders innogy shares 100% > ‘Agreement on basic principles’ between RWE and innogy: RWE Group 23.2% – Operational management of Conventional Trading/Gas Conventional Power Generat
Slide 5: Development of operating result in Q1-Q3 2016
Development of operating result in Q1-Q3 2016 By division (-€532 million; -20%) € million > Conventional Power Generation: Cost Q1-Q3 2015 reductions and positive one-off effects as 2,648 well as lower depreciation overcompensate Conventional +30 Power Generation lower realised generation spreads. T
Slide 6: Development of the earnings figures in Q1-Q3 2016
Development of the earnings figures in Q1-Q3 2016 € billion +/- vs. Q1-Q3 2016 Q1-Q3 2015 > Non-operating result: Down, mainly as a result of timing effects from EBITDA 3.8 -0.6 asymmetrical accounting for derivatives and impairment on German Depreciation -1.7 +0.1 gas storage assets. Operating resu
Slide 7: From EBITDA to cash flows from operating activities
From EBITDA to cash flows from operating activities Change in provisions and change in working capital leads to low CFoA1 in Q1-Q3 2016 € billion 3.8 -1.0 -1.1 1.7 -1.1 0.6 EBITDA Provisions2 FFO Funds from Change in CFoA Q1-Q3 2016 financial result/ operations working Q1-Q3 2016 tax (FFO) capital Q
Slide 8: 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 intangible minin
Slide 9: Group outlook for 2016 confirmed
Group outlook for 2016 confirmed 2015 reported1 2016 forecast2,3 € million EBITDA 7,017 5,200 – 5,500 Operating 3,837 2,800 – 3,100 result 596 Conventional Power Generation In the order of 2015 156 Trading/Gas Midstream Significantly below 2015 3,050 innogy Moderately below 2015 Adjusted net income
Slide 10: Draft nuclear law: Transfer of financing and duties of the disposal of nuclear waste
Draft nuclear law: Transfer of financing and duties of the disposal of nuclear waste > Independent foundation constituted under public law – responsible for the financing of nuclear waste disposal and interim storage > Financial obligation consists of existing provisioned future liabilities (base am
Slide 11: RWE stand-alone with solid liquidity position
RWE stand-alone with solid liquidity position Liquidity position of RWE stand-alone1 (€ bn) > Comfortable liquidity position for short- term financing requirements 2.6 ~3.0 - 3.5 > Ample options to finance externalisation of provisions for 9.6 1.0 nuclear storage: ~2 - 3 – Existing liquidity ~5 - 6
Slide 12: Net debt breakdown of RWE Group
Net debt breakdown of RWE Group €bn as of 30 Sep 2016 Financial assets 14.7 > Financial receivables against innogy 5.2 18.7 > Other financial assets 9.6 27.4 Liabilities 23.5 > Nuclear provisions 10.6 > Mining provisions 2.5 > Pension provisions 3.4 8.7 > Other financial liabilities 2.9 > Debt not (
Slide 13: Financial calendar
Financial calendar > 14 March 2017: Annual Report on fiscal 2016 > Late March 2017: Capital Markets Day > Strategic update and management agenda > Key financial performance and steering parameters > Revised dividend policy > 27 April 2017: Annual General meeting RWE AG | Q1-Q3 2016 Conference Call |
Slide 14: Back-up charts
Back-up charts
Slide 15: Performance of the Conventional Power Generation Division
Performance of the Conventional Power Generation Division Jan – Sep: operating result: +7.4% (+ €30 million) € million + Efficiency improvements + Lower depreciation 435 405 + Income from sale of real estate 2015 2016 + Lower nuclear fuel tax + Settlement for damages for new hard coal power plant in
Slide 16: 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 2016 2016 >30% >20% >40% >10% >40% >10% >60% >10% >60% >20% >80% >40% >90% >60% >90% >80% >90% >90% forward 31 Dec. 2013 31 March 2014 30 June 2014 30 Sep. 2014 31 Dec. 2014 31 March 20
Slide 17: Clean Dark and Spark Spreads – 2015-2017 forwards for Germany, UK and NL
Clean Dark (CDS) and Spark Spreads (CSS) – 2015 - 2017 forwards for Germany, UK and NL1 Germany UK2 Netherlands Cal15 Cal16 Cal17 Cal15 Cal16 Cal17 Cal15 Cal16 Cal17 €/MWh €/MWh 20 20 Ø16.97 15 15 Ø6.52 Ø10.52 Ø11.21 Ø7.10 10 10 Ø9.18 Ø6.63 Ø3.21 Ø5.80 5 5 Ø4.83 Ø3.65 Ø5.33 0 0 Ø-4.34 -5 Ø-0.15 -5 Ø
Slide 18: Performance of the Trading/Gas Midstream Division
Performance of the Trading/Gas Midstream Division Jan – Sep: operating result: -€226million € million Trading: - Significantly lower earnings from trading activities in Q2 126 -100 2015 2016 Outlook for fiscal 2016: significantly below previous year € million Trading: - Lower earnings after weak per
Slide 19: Overview of capacity measures
Overview of capacity measures Measure Plant MW1 Fuel Location Date Decom- Goldenbergwerk 110 Lignite DE Q3-2015 missioning Amer 8 610 Hard coal NL Q1-2016 Westfalen C 285 Hard coal DE Q1-2016 Mid-size units 190 Gas NL Q4-2016 Voerde A/B 1.390 Hard coal DE Q1-2017 Gersteinwerk K2 610 Hard coal DE Q1-
Slide 20: 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 March 2017 http://www.rwe.com/ir/reports/ Annual Report for fiscal 2016 27 April 2017 Investor and Analyst Conferences Annual General Meeting http://w
Slide 21: RWE Investor Relations – contacts
RWE Investor Relations – contacts Contacts for Institutional Investors & Financial Analysts Gunhild Grieve Martin Vahlbrock Dr. Burkhard Pahnke Head of Investor Relations Tel.: +49 201 12-15055 Tel.: +49 201 12-15182 Tel. +49 201 12-15169 martin.vahlbrock@rwe.com burkhard.pahnke@rwe.com gunhild.grie