Rwe Ag · XETR:RWE
Rwe — Q3 2012 Earnings Presentation
33 slides from Rwe's earnings presentation, Nov 14, 2012
Slide 1: Investor and Analyst Q1-Q3 2012 Conference Call
Investor and Analyst Q1-Q3 2012 Conference Call Essen, 14 November 2012 Bernhard Günther Stephan Lowis Member of the Vice President Executive Board Investor Relations of RWE AG
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
Main messages Q1-Q3 2012 operating performance: EBITDA +8%, operating result +8%, recurrent net income +6% Further successful steps in our divestment programme - Closing of disposal of Berliner Wasserbetriebe (c. € 660 m) - Disposal of our 20% stake in the upstream concession “Edvard Grieg” (c. € 25
Slide 4: RWE Group key performance indicators
RWE Group key performance indicators January – September Change € million 2012 2011 in % External revenue 38,358 38,167 0.5 Cash flows from operating activities 3,240 4,540 -28.6 EBITDA 6,718 6,244 7.6 Operating result 4,606 4,270 7.9 Non-operating result -251 -596 57.9 Financial result -1,439 -1,17
Slide 5: Operating Result by Division (in € million)
Operating Result by Division (in € million) +14% 2254 2,254 Q1-Q3 2011 Q1-Q3 2012 1974 1,974 -4% 1,202 1202 1149 -21% 1,149 935 741 +25% 6% 561 450 -26% 276 293 -12% 181 134 99 87 +52% Power Sales / NL/B UK CEE/SEE Renewables Upstream Generation Distribution Gas&Oil -403 Networks Germany -842 Tradin
Slide 6: Development of net debt influenced by increase in provisions due to low interest environment
Development of net debt influenced by increase in provisions due to low interest environment € billion Capex Dividends Acquisitions/ Cash flows Others Change Hybrid divestiture/ from including in pension, disposals/ operating f/x effects nuclear, (de)consoli- activities mining dation provisions +1.6
Slide 7: Continued execution of measures to support financial strength
Continued execution of measures to support financial strength Expected development of leverage factor (Net debt1/EBITDA) Measures to improve financial headroom Capital Divestments Focused long-term Efficiency measures capex programme programme up to € 7bn by 2013 € 4 – 5 bn/a € 1bn by 2014 completed
Slide 8: Outlook for 2012 improved
Outlook for 2012 improved In € million 8,460 At least at last year’s level EBITDA 5,814 At least at last year’s level Operating result Recurrent 2,479 In the order of 2011 net income 2011 2012e After further disposals1 Dividend € 2.00/share Pay out ratio of 50% – 60% of recurrent net income 1 No maj
Slide 9: Divisional outlook for the operating result
Divisional outlook for the operating result € million 2011 actual 2012 forecast versus 2011 Germany 4,205 Above last year’s level Power Generation 2,700 Above last year’s level Sales/Distribution networks 1,505 In the order of last year’s level Netherlands/Belgium 245 Below last year’s level United
Slide 10: Back-up Charts
Back-up Charts RWE AG | Q1 - Q3 2012 Conference Call | 14 November 2012 10
Slide 11: Performance of the Germany Division (I) Power Generation Business Area (RWE Power)
Performance of the Germany Division (I) Power Generation Business Area (RWE Power) January – September: operating result: +14.2% € million + Absence of one-off burdens from new German energy policy in 2011 1,974 2,254 + Lower realised electricity prices offset by higher volumes (c. +€ 40m), (includi
Slide 12: Forward selling by RWE Power in the German market
Forward selling1 by RWE Power in the German market (Base-load & peak-load forwards in €/MWh) 100 2012 forward 80 60 40 > 30% > 35% > 50% > 80% > 90% 100 2013 forward 80 60 40 > 10% > 30% > 50% > 80% > 90% 100 2014 forward 80 60 40 > 20% > 40% > 50% 01/01/2010 01/07/2010 01/01/2011 01/07/2011 01/01/2
Slide 13: Germany: Clean Dark and Spark Spreads (CDS/CSS)
Germany: Clean Dark and Spark Spreads (CDS/CSS) 2011 forward 2012 forward 2013 forward Ø 14.88 Ø 9.99 Ø 7.74 Ø 6.16 Ø 4.93 Ø -1.64 Trading year 2010 Trading year 2011 Trading year 2012 CDS Cal 2011–13 Base load (€/MWh) Average CDS CSS Cal 2011–13 Peak load (€/MWh) Average CSS (assumed thermal effici
Slide 14: Performance of the Germany Division (II) Sales/Distribution Networks Business Area
Performance of the Germany Division (II) Sales/Distribution Networks Business Area January – September: operating result: -4.4% € million - Absence of positive one-off items compared to 2011 1,202 1,149 Sales - Lower margins in electricity sales Distribution networks 2011 2012 + Improved efficiency
Slide 15: Performance of the Netherlands/Belgium Division (Essent)
Performance of the Netherlands/Belgium Division (Essent) January – September: operating result: -26.0% € million - Lower electricity generation spreads - Higher depreciation + Improved margins in the sales business due to cost cutting and gas 181 134 sourcing optimisation 2011 2012 Guidance for fisc
Slide 16: Performance of the United Kingdom Division (RWE npower)
Performance of the United Kingdom Division (RWE npower) January – September: operating result: +6.2 % € million + Positive f/x effects - Absence of non-recurrent item relating to settlement of claims in 2011 Power generation 276 293 - Lower margins partly offset by commercial operation of Pembroke p
Slide 17: UK: Clean Dark and Spark Spreads (CDS/CSS)
UK: Clean Dark and Spark Spreads (CDS/CSS) 2011 forward 2012 forward 2013 forward Ø 22.14 Ø 13.78 Ø 8.19 Ø 3.55 Ø 6.70 Ø 3.44 Trading year 2010 Trading year 2011 Trading year 2012 CDS Cal 2011–13 Base load (€/MWh) Average CDS CSS Cal 2011–13 Base load (€/MWh) Average CSS (assumed thermal efficiency:
Slide 18: Performance of the Central Eastern and South Eastern Europe Division
Performance of the Central Eastern and South Eastern Europe Division January – September: operating result: -20.7% € million - Negative f/x-effects 935 Czech Republic: 741 - Lower gas retail and distribution margins Hungary: - Lower electricity generation and retail margins 2011 2012 Guidance for fi
Slide 19: Performance of the Renewables Division (RWE Innogy)
Performance of the Renewables Division (RWE Innogy) January – September: operating result: -12.1% € million + Increased generation volumes (partly driven by improved wind conditions and growth investments) 99 87 - Lower income from disposal of projects - Absence of positive one-off in 2011 relating
Slide 20: Performance of the Upstream Gas & Oil Division (RWE Dea)
Performance of the Upstream Gas & Oil Division (RWE Dea) January – September: operating result: +24.7% € million + Higher realised oil and gas prices 450 561 + Positive f/x effects - Lower production volumes 2011 2012 Guidance for fiscal year 2012: significantly above last year € million + Higher ga
Slide 21: Performance of the Trading/Gas Midstream Division (RWE Supply & Trading)
Performance of the Trading/Gas Midstream Division (RWE Supply & Trading) January – September: operating result: +52.1% € million Trading + Strongly improved performance in the energy trading business Supply -403 - Burdens from long-term oil-indexed gas contracts -842 + Compensation from commercial s
Slide 22: Development of TTF gas price and brent oil price
Development of TTF gas price and brent oil price Forward for delivery Forward for delivery Forward for delivery Forward for delivery in 2010 in 2011 in 2012 in 2013 €/MWh €/MWh 50 80 40 60 30 40 20 20 10 0 0 -20 Trading year 2009 Trading year 2010 Trading year 2011 Trading year 2012 Spread (right ax
Slide 23: Cash flow statement
Cash flow statement January – September Change € million 2012 2011 (absolute) Funds from operations (FFO) 3,298 4,168 -870 Change in working capital -58 372 -430 of which variation margins 112 -884 +996 Cash flows from operating activities 3,240 4,540 -1,300 Minus capex on fixed assets -3,391 -4,406
Slide 24: RWE Group electricity production (by geographic regions)
RWE Group electricity production (by geographic regions) January – September Other Total Total in TWh Germany UK NL/BE Internat. 2012 2011 Lignite 56.8 3.9 60.7 54.0 Nuclear 22.3 22.3 27.2 Hard coal 26.5 11.8 5.3 0.3 43.9 33.2 thereof contracts 16.4 16.4 14.8 Gas 6.3 19.0 4.5 0.1 29.9 29.2 Renewable
Slide 25: RWE Group electricity sales volume (by geographic regions)
RWE Group electricity sales volume (by geographic regions) January – September Total Total in TWh Germany UK NL/BE Poland Hungary Other 2012 2011 Residential and commercial 18.1 12.9 8.1 1.7 4.0 0.2 45.0 45.5 customers Industrial and corporate 42.3 23.6 10.4 2.5 3.5 0.7 83.0 85.5 customers Distribut
Slide 26: RWE Group gas sales volume (by geographic regions)
RWE Group gas sales volume (by geographic regions) January – September Czech Total Total in TWh Germany Rep. NL UK Other 2012 2011 Residential and commercial 18.6 12.7 23.1 29.2 2.0 85.6 87.5 customers Industrial and corporate 21.0 11.5 31.9 2.1 8.7 75.2 92.6 customers Distributors1 31.2 11.1 0.0 0.
Slide 27: Financial liabilities and assets
Financial liabilities and assets (excluding hybrid capital, as of 30 September 2012) Financial liabilities Financial assets Split of in € billion in € billion securities 25 20.9 10 14.5% 20 2.2 7.3 16.2 1.4 8 6.6 1.0 0.2 1.0 15 0.9 0.7 6 1.6 1.6 10 0.7 17.1 4 0.7 4.7 14.3 5 0.5 4.0 1.2 2 3.6 0.7 0.2
Slide 28: Capital market debt maturities and sources of financing
Capital market debt maturities and sources of financing (as of 30 September 2012) Capital market debt maturities1 Strong sources of financing in € bn Fully committed for liquidity syndicated loan 2,5 20 back-up (€ 4.0 bn up to Nov. 2015) € 0.0 bn 2,0 16 1,5 12 Commercial paper $ 5.0 bn (up to 1 year
Slide 29: Capital market debt currency and interest exposure
Capital market debt currency and interest exposure (as of 30 September 2012) 10% 33% 1 € 20.0 bn € 18.9 bn2 67% 90% € £ Interest rate fixing expiry > 1 year Interest rate fixing expiry < 1 year 1 Capital market debt = bonds of € 16.2 bn and hybrids of € 3.8 bn; split into currencies includes cross-c
Slide 30: Conventional power plant new build programme
Conventional power plant new build programme € bn1 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Lingen 0.5 (Gas, 876 MW, 100%) BoA 2&3, Neurath 2.6 Units G F (Lignite, 2,100 MW, 100%) Hamm 2.4 Units D E (Hard coal, 1,528 MW, 77%) Staythorpe 0.8 Units 1 -4 (Gas, 1,650 MW, 100%) Pembroke 1.2 Unit
Slide 31: RWE Dea's largest field developments
RWE Dea's largest field developments RWE Capex 1 Production start share (€ bn) 2011 2012 2013 2014 2015 2016 2017 2018 West Nile Delta (Egypt) NA 40% 2.9 WMDW 20% 100% Disouq (Egypt) 0.2 (Operator) 70% Breagh Phase 1 (GB) 0.4 (Operator) Reggane (Algeria) 19.5% 0.4 Edvard Grieg (Norway) 2 20% 0.6 Kna
Slide 32: RWE Innogy major projects under construction
RWE Innogy major projects under construction € bn1 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Gwynt y Môr 2.4 (Wind offshore, 576 MW, 60%) Greater Gabbard 1.9 (Wind offshore, 504 MW, 50%) Markinch (Biomass CHP, 0.3 45 MWe, 88 MWth, 100%) Nordsee Ost2 1.1 (Wind offshore, 295 MW, 100%) Capacity
Slide 33: Always be informed about RWE…
Always be informed about RWE… Follow us on twitter@RWE_IR and have a look at www.rwe.com/ir Calendar http://www.rwe.com/web/cms/en/110614/rwe/investor-relations/events/calendar/ Annual and Interim Reports http://www.rwe.com/web/cms/en/110822/rwe/investor-relations/reports/ Investor and Analyst