Rwe Ag · XETR:RWE
Rwe — Q1 2006 Earnings Presentation
24 slides from Rwe's earnings presentation, May 15, 2006
Slide 1: Report on the First Quarter of Fiscal Year 2006
Report on the First Quarter of Fiscal Year 2006 Essen, May 15, 2006 Klaus Sturany Chief Financial Officer RWE AG Conference call, Q1 2006 | May 15, 2006
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: n Projections of revenues, income, earnings per share, capital expenditures, dividends, capital structure or other
Slide 3: Highlights of Q1 2006
Highlights of Q1 2006 Performance n Operating result improved by 16% n Net profit up by 7% n Cost reduction: € 60 million out of € 230 million achieved Financial Position n Net financial debt reduced to € 9.4 bn Strategy / Portfolio n Planned disposal of American Water on track. Process for IPO laun
Slide 4: RWE group results
RWE group results January – March change € million 2006 2005 in % EBITDA 2,768 2,427 +14.1 Operating result 2,256 1,950 +15.7 Non-operating result -60 77 -177.9 Financial result -587 -521 -12.7 Income from continuing operations before tax 1,609 1,506 +6.8 Taxes on income -512 -441 -16.1 Income from
Slide 5: Divisional performance
Divisional performance Operating Result EBITDA January - March 2006 2005 Change 2006 2005 Change € million In% In% RWE Power 1,029 707 +45.5 1,207 833 +44.9 Power Generation 824 577 +42.8 931 694 +34.1 RWE Dea 205 130 +57.7 276 139 +98.6 RWE Energy 1,013 852 +18.9 1,143 1,019 +12.2 German regions 66
Slide 6: Non-operating result
Non-operating result January – March change € million 2006 2005 (absolute) Capital gains 5 206 -201 Impairment losses 0 0 - Restructuring / others -65 -129 +64 Total* -60 77 -137 * For calculating recurrent net income the non-operating result (minus a 39% lump-sum tax on restructuring/others) is sub
Slide 7: Financial result
Financial result January – March change € million 2006 2005 in % Net interest -261 -222 -17.6 Interest accretion to long-term provisions -292 -311 +6.1 Other financial result -34 12 -383.3 Total -587 -521 -12.7 77 Conference call, Q1 2006 | May 15, 2006
Slide 8: RWE cash flow statement
RWE cash flow statement January – March change € million 2006 2005 (absolute) Income from continuing operations after tax 1,097 1,065 +32 Depreciation, amortization, impairment losses 714 707 +7 and write-backs Changes in provisions 1 -168 +169 Changes in deferred taxes -32 -90 +58 Disposal gains -1
Slide 9: Development of net financial debt
Development of net financial debt Cash flows acquisitions/ Fair value from disposals/ Currency of debt € billion Capex Dividends operating (de)consoli- translation others related financial activities dations effect derivatives 13 +0.7 0.0 -1.3 12 11.4 -0.7 11 -0.2 -0.5 10 9.4 -1.3 9 8 0 Net financia
Slide 10: Outlook for 2006
Outlook for 2006 Operating result 20051 2006 € million forecast2 EBITDA 8,324 Operating result 6,201 +5% - 10% RWE Power (incl. RWE Trading) 2,112 RWE Energy 2,507 RWE npower 437 3) Water Division 1,416 1 Exchange rates of (€1 =) USD 1.24; GBP 0.68 2 Based on exchange rates of (€1 =) USD 1.25; GBP 0
Slide 11: Outlook for 2006
Outlook for 2006 20051 2006 € million forecast2 External revenue 41,819 Operating result 6,201 +5% - 10% Net income 2,231 +10% - 20% Recurrent net income 2,257 +10% - 20% ROCE 14.7% >14% Capex on fixed assets 3,667 ca. € 4.5 – 4.8 bn 1 Exchange rates of (€1 =) USD 1.24; GBP 0.68 2 Based on exchange
Slide 12: Back-ups
Back-ups 12 Conference call, Q1 2006 | May 15, 2006
Slide 13: Currency effects 2006 versus 2005
Currency effects 2006 versus 2005 € million Change to thereof January - March 2006 2005 currency External revenue 13,807 +2,787 +62 EBITDA 2,768 +341 +18 Operating result 2,256 +306 +10 Net income 1,048 +73 +3 Change to thereof € billion 03/31/2006 12/31/2005 currency Net financial debt 9.4 -2.0 -0.
Slide 14: Forward selling of RWE Power in the German market (baseload forwards)
Forward selling of RWE Power in the German market (baseload forwards) 56 52 48 Forward 44 40 2006 36 32 28 >10% sold >25% sold >50% sold >80% sold >95% sold 24 64 60 56 52 Forward 48 44 2007 40 36 32 28 >1% sold >10% sold >35% sold >55% sold >80% sold 24 64 60 56 52 Forward 48 44 2008 40 36 32 28 >1
Slide 15: Electricity Price in Germany and UK
Electricity Price in Germany and UK Forward 2005 Forward 2006 Forward 2007 € / MWh £ / MWh 85 75 80 70 75 65 70 60 65 55 60 55 50 50 45 45 40 40 35 35 30 30 25 25 20 20 15 15 10 10 Dec 03 Feb 04 Apr 04 Jun 04 Aug 04 Oct 04 Dec 04 Feb 05 Apr 05 Jun 05 Aug 05 Oct 05 Dec 05 Feb 06 Apr 06 05/11/2006 Who
Slide 16: Coal price development
Coal price development €/tCE 85 80 75 Ø CIF-NWE 2004 70 67.44 €/t ce Ø BAFA2 2005 64.84 €/t ce 3 65 60 55 Ø CIF-NWE 2005 Ø BAFA2 2004 57.28 €/t ce 50 Ø BAFA2 2002 55.36 €/t ce 44.57 €/t ce Ø CIF-NWE 2003 43.74 €/t ce 45 40 Ø CIF-NWE 2002 Ø BAFA2 2003 35 39.40 €/t ce 39.87 €/t ce 30 Jan 02 Jun 02 Nov
Slide 17: RWE Group electricity production
RWE Group electricity production January – March Other Total Total in TWh Germany UK Internat. 2006 2005 Lignite 18.4 1.3 19.7 20.5 Nuclear 13.9 13.9 13.2 Hard coal 14.6 6.3 20.9 18.7 thereof contracts 9.2 9.2 8.0 Gas 3.0 2.8 5.8 5.0 Water and others 1.3 0.7 0.2 2.2 1.8 thereof contracts 0.6 0.6 0.7
Slide 18: RWE Group electricity sales volume
RWE Group electricity sales volume January – March Ger- Po- Hun- Total Total in TWh many UK land gary Others 2006 2005 Private and commercial 9.2 6.7 1.0 1.5 0.2 18.6 18.6 Industrial and corporate 12.9 9.0 0.7 1.5 24.1 24.5 Distributors / power utilities 18.2 0.5 1.3 0.1 20.1 16.7 Electricity tradin
Slide 19: RWE Gas sales volume
RWE Gas sales volume January – March Ger- Czech UK Others Total Total in TWh many Rep. 2006 2005 Private and commercial 13.9 20.0 18.0 3.3 55.2 50.1 Industrial and corporate 15.5 15.7 3.0 5.6 39.8 34.3 Distributors / power utilities* 44.7 7.8 0.3 0.0 52.8 48.6 Total 74.1 43.5 21.3 8.9 147.8 133.0 *
Slide 20: RWE AG: flexible funding structure
RWE AG: flexible funding structure Fully committed for liquidity syndicated loan € 4.0 billion back-up and (€ 2.0 bn 364 days refinancing € 2.0 bn 5 years) €0.0 billion Commercial papers (up to 1 year) $ 5.0 billion $ 3.9 billion MTN programme (up to 30 years) € 20 billion € 15.1 billion Amounts use
Slide 21: Financial assets and liabilities (as at 03/31/2006)
Financial assets and liabilities (as at 03/31/2006) €27.3 billion2 other 2.7 commercial paper 3.2 €17.9 bank loans billion1 2.9 bonds (incl. other 3.8 other financial assets notes payable) 0.7 1.8 other loans 18.5 cash & cash equivalents 10.4 securities held as current assets securities held as 1.2
Slide 22: Gross financial debt currency and interest exposure
Gross financial debt currency and interest exposure1 Gross financial debt as of March, 2006: € 27.3 billion € / Others 7% Indexed 1% Floating 12% $2 30% Fixed 87% £ 63% Long term financed (> 1 Year): 76% of gross financial debt Short term financed (< 1 Year): 24% of gross financial debt With debt in
Slide 23: Structural subordination in the RWE Group
Structural subordination in the RWE Group RWE AG (A+ / A1) / RWE Finance B.V. / Consolidated German Subsidiaries 1 81% RWE Npower Thames Water Aqua Holdings GmbH Holdings Plc Thames Water Plc (A / A3)2 8% RWE Npower Thames Water Thames Water American E’town Corp. 2 Plc Utilities Ltd Utilities Financ
Slide 24: Reminder…
Reminder… To be always updated, please have a look at our webpage. Navigation around www.rwe.com n Calendar Investor Relations > Calendar n Annual Report Investor Relations > Financial Reports > Annual Report n Interim Report Investor Relations > Financial Reports > Interim Reports n Factbook (300 p