Slide 1: FY 2022 Results
21 March 2023 FY 2022 Results Markus Krebber, CEO Michael Müller, CFO Thomas Denny, Head of Investor Relations 21 Mar 2023 FY results 2022
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: Markus Krebber, Chief Executive Officer
Markus Krebber Chief Executive Officer, RWE AG 10 Mar 21 Nov 2022 2023 9Mresults FY results2022 2022 Page 3
Slide 4: Strong operating performance while weathering the energy crisis and delivering on green growth
Strong operating performance while weathering the energy crisis and delivering on green growth Total Shareholder Return FY 2018 - 2022 • Financial targets exceeded with adj. EBITDA of RWE €6.3bn and adj. net income of €3.2bn STOXX Europe 600 utilities 188% • Continuous delivery of projects with comm
Slide 5: Strong earnings across entire core business
Strong earnings across entire core business Group EBITDA in EUR m • Renewable earnings up on the back of green Core business capacity additions, better wind conditions and Coal/Nuclear FY 2022 favourable market prices 6,310 • Exceptional result from flexible generation portfolio driven by higher ear
Slide 6: Significant green growth through delivery of projects, strategic acquisitions and pipeline additions
Significant green growth through delivery of projects, strategic acquisitions and pipeline additions Successful delivery Existing projects Significant step up of projects complemented with of pipeline for future in 2022 strategic acquisition growth • 2.4 GW of green capacity • Further 6.0 GW of gree
Slide 7: RWE now with leading positions in all core markets
RWE now with leading positions in all core markets No No No No No Global US US Wind UK Wind Europe Offshore Solar & Solar & Solar Wind & Solar Note: Offshore market excluding China. 21 Mar 2023 FY results 2022 Page 7
Slide 8: Flexible generation portfolio perfectly complements wind and solar business
Flexible generation portfolio perfectly complements wind and solar business Hydro/Biomass/Gas EBITDA Growth of flexible generation and H2 portfolio in EUR m • Portfolio growth in 2023 through acquisition of Magnum gas power FY FY Outlook station in NL (1.4 GW) and commissioning of Biblis gas power p
Slide 9: RWE accelerates its decarbonisation path by exiting coal in 2030
RWE accelerates its decarbonisation path by exiting coal in 2030 Accelerated coal phaseout path by 8 years Coal/Nuclear share in EBITDA capacity development relative share (%) Coal exit 2030 Coal exit 2038 Core business Coal/Nuclear 44 76 85 100 56 24 15 31 Dec 31 Dec 31 Mar 31 Dec 2016 2021 2025e 2
Slide 10: Green growth translates into earnings and dividend growth
Green growth translates into earnings and dividend growth Green capacity growth Group EBITDA growth in GW in EUR m Outlook Outlook FY 2023 2023 2022 31 Dec >35 GW 5,800 – 31 Dec 2022 6,310 6,400 FY Outlook 2021 2021 2022 29.2 GW 26.9 GW 3,650 3,800 RWE increases its dividend proposal for 2023 to €1.
Slide 11: Michael Müller, Chief Financial Officer
Michael Müller Chief Financial Officer, RWE AG 10 Mar 21 Nov 2022 2023 9Mresults FY results2022 2022 Page 11
Slide 12: Financial highlights in full year 2022
Financial highlights in full year 2022 Very strong business performance with earnings exceeding outlook; adj. EBITDA of €6.3bn and adj. net income of €3.2bn €4.4bn net cash investments in green growth with more than 80% of capex taxonomy aligned; strict investment discipline Issued €2bn long term gr
Slide 13: Strong earnings driven by green growth and outperformance of flexible generation and trading business
Strong earnings driven by green growth and outperformance of flexible generation and trading business Core adj. EBITDA FY 2022 vs. FY 2021 in EUR m • Offshore Wind earnings up on the back of capacity additions and better wind conditions Offshore Wind • Onshore Wind/Solar earnings marked by higher On
Slide 14: Adjusted net income reflects the successful operational performance and capacity build out
Adjusted net income reflects the successful operational performance and capacity build out Adj. net income in EUR m • Adj. EBITDA driven by strong operational performance and green capacity build out FY FY 2021 2021 FYFY 2022 2022 • Adj. depreciation increased in line with growth investments and wri
Slide 15: Adjusted operating cash flow marked by higher operating working capital from injections of gas into storage
Adjusted operating cash flow marked by higher operating working capital from injections of gas into storage facilities Reconciliation to adj. operating cash flow for FY 2022 in EUR m 6,310 312 -3,903 -87 2,448 -184 Adj. EBITDA Changes in Changes in Cash Cash Adj. operating provisions/ operating fina
Slide 16: Improved net debt position at the end of 2022 despite €4.4bn investments in green growth
Improved net debt position at the end of 2022 despite €4.4bn investments in green growth Development of net debt in FY 2022 in EUR bn (+ net debt/- net assets) 0.9 -2.7 -0.4 4.4 -1.5 -2.4 -1.6 Net debt Adj. operating Net cash Dividends Other changes in Changes in Net debt 31 Dec 21 cash flow investm
Slide 17: Strong outlook for full year 2023 (1/2)
Strong outlook for full year 2023 due to capacity additions and normalised wind and earnings expectations (1/2) Divisional 2022 FY result and FY 2023 outlook – adj. EBITDA in EUR m FY2021 FY 2022 Outlook Normalised wind conditions and FY contribution of assets commissioned during Offshore Wind 1,412
Slide 18: Strong outlook for full year 2023 (2/2)
Strong outlook for full year 2023 due to capacity additions and normalised wind and earnings expectations (2/2) Group outlook FY 2023 in EUR m FY2021 FY 2022 Outlook • Increase in adj. depreciation due to growth Core adj. EBITDA 5,559 4,800 – 5,400 investments, CEB acquisition and write-backs Adj. E
Slide 19: Appendix
Appendix 21 Mar 2023 FY results 2022 Page 19
Slide 20: Significant growth with additional 10.5 GW capacity
Significant growth with additional 10.5 GW capacity Development of our green generation portfolio, GW pro rata +10.5 39.7 0.9 0.5 2.6 0.6 1.4 1.4 29.2 3.1 26.9 -0.1 2.4 31 Dec Capacity Capacity 31 Dec CEB Magnum Offshore Onshore Solar Batteries Flexible Total 2021 additions farm- 2022 acquisition ac
Slide 21: Core Offshore Wind: Earnings up due to capacity additions and better wind conditions
Core Offshore Wind Earnings up due to capacity additions and better wind conditions Key financials FY 2022 – Offshore Wind € million FY 2022 FY 2021 Change Adj. EBITDA FY 2022 vs. FY 2021 Adj. EBITDA 1,412 1,110 302 Higher earnings from capacity additions to portfolio (Triton Knoll t/o non-recurring
Slide 22: Core Onshore Wind/Solar: Good operational performance
Core Onshore Wind/Solar Good operational performance, while last year was marked by a negative one-off effect Key financials FY 2022 – Onshore Wind/Solar € million FY 2022 FY 2021 Change Adj. EBITDA FY 2022 vs. FY 2021 Adj. EBITDA 827 258 569 No negative one-off in 2022 t/o non-recurring items – -27
Slide 23: Core Hydro/Biomass/Gas: Strong earnings development in favourable market conditions
Core Hydro/Biomass/Gas Strong earnings development in favourable market conditions Key financials FY 2022 – Hydro/Biomass/Gas € million FY 2022 FY 2021 Change Adj. EBITDA FY 2022 vs. FY 2021 Adj. EBITDA 2,369 731 1,638 Higher generation margins at favourable market conditions t/o non-recurring items
Slide 24: Core Supply & Trading: Outstanding performance by the trading business
Core Supply & Trading Outstanding performance by the trading business Key financials FY 2022 – Supply & Trading € million FY 2022 FY 2021 Change Adj. EBITDA FY 2022 vs. FY 2021 Adj. EBITDA 1,161 769 392 Exceptionally strong performance across almost t/o non-recurring items – – – all commodities and
Slide 25: Non-Core Coal/Nuclear: Earlier coal phaseout supports growing green strategy
Non-Core Coal/Nuclear Earlier coal phaseout supports RWE’s growing green strategy Key financials FY 2022 – Coal/Nuclear € million FY 2022 FY 2021 Change Adj. EBITDA FY 2022 vs. FY 2021 Adj. EBITDA 751 889 -138 Lower generation margins mainly due to capacity closures in coal t/o non-recurring items –
Slide 26: Economic net debt
Economic net debt Net assets/net debt Net debt definition (€ million) 31 Dec 2022 31 Dec 2021 +/- Cash and cash equivalents 6,988 5,825 1,163 • Net debt does not contain Marketable securities 13,730 8,347 5,383 mining provisions, which Other financial assets 8,543 12,403 -3,860 essentially cover our
Slide 27: Your contacts in Investor Relations
Your contacts in Investor Relations Important Links Financial Calendar • Annual and interim reports & statements • 04 May 2023 ADR programme available Annual General Meeting • Investor and analyst conferences • 11 May 2023 Further information on our homepage Interim statement on the first quarter of