Slide 1: 9M 2018 Interim Results
9M 2018 Interim Results Christopher Delbrück – CFO 13 November 2018
Slide 2: Agenda
Agenda 1. 9M 2018 – Highlights 2. 9M 2018 – Financial results 3. Appendix
Slide 3: Essentials of 9M 2018
Essentials of 9M 2018 Strong tailwind from commodity markets in the current year Market & EU Emission Trading scheme back in operating mode Strategy Large asset projects largely on track Key financials with mixed picture Earnings & Lower Adj. Group EBIT €386m (-59%) – carbon phasing with a €0.2bn ne
Slide 4: Commodity markets – strong tailwind and rising volatility
Commodity markets – strong tailwind and rising volatility Baseload forwards CO2 prices and coal forwards Gas forwards EUR/MWh EUR/t USD/MT EUR/MWh 60 25 100 30 Germany 20 80 50 25 Nordic 15 60 40 20 10 40 30 CO2 15 5 20 TTF Coal (rhs) 20 0 0 10 Jan 2017 Jul 2017 Jan 2018 Jul 2018 Jan 2017 Jul 2017 J
Slide 5: Agenda
Agenda 1. 9M 2018 – Highlights 2. 9M 2018 – Financial results 3. Appendix
Slide 6: Key financials 9M 2018 with mixed picture
Key financials 9M 2018 with mixed picture Adj. EBIT(DA) Operating cash flow, adj. FFO Economic net debt €bn €bn €bn 1.4 0.9 3.8 1.0 1.0 2.4 0.7 0.7 0.4 0.1 9M 2017 9M 2018 OCF OCF Adj. FFO Adj. FFO YE 2017 9M 2018 EBIT EBITDA 9M 2017 9M 2018 9M 2017 9M 2018 Adj. EBIT(DA) down Op. cash flow significa
Slide 7: Adjusted EBIT – 9M 2018 earnings reduction largely due to structural effects and CO2 phasing
Adjusted EBIT – 9M 2018 earnings reduction largely due to structural effects and CO2 phasing Reconciliation Adj. EBIT 9M 2017 to Adj. EBIT 9M 2018 €bn Adj. EBIT 9M 2017 1.0 Structural effects (YR, FX, lapse of Berezovskaya insurance payments) Regulation (Nordic tax, capacity markets) Price outright
Slide 8: Adj. EBIT(DA) to OCF – low cash conversion due to working capital smoothing
Adj. EBIT(DA) to OCF – low cash conversion due to working capital smoothing Reconciliation Adj. EBIT 9M 2018 to operating cash flow 9M 2018 €m 416 505 -634 891 386 83 19 -630 -24 -13 89 Adj. EBIT Depreci- Adj. EBITDA Non-cash Provision Changes in Payments OCFbIT Interest Tax OCF 9M 2018 ation and 9M
Slide 9: Economic net debt up due to seasonally low OCF, increased margining and IFRS 16 impact
Economic net debt up due to seasonally low OCF, increased margining and IFRS 16 impact Economic net debt €bn 0.2 3.8 0.4 0.3 0.9 0.3 0.4 2.4 0.7 -0.1 -0.1 1.0 0.7 2.2 0.8 Economic net Divestments OCF Capex Dividend IFRS 16 Margining Other Economic net debt YE 2017 payment debt 9M 2018 AROs1 Pension
Slide 10: 2018 Outlook reiterated
2018 Outlook reiterated Adj. EBIT Dividend Key highlights TBU €bn €bn European Generation 1.1 1.1 0.31 0.27 Increasing contribution from UK and French Range capacity payments 0.8 Final reduction of Swedish nuclear capacity tax and further reduction of hydro property tax 0.9 Lower achieved outr
Slide 11: Agenda
Agenda 1. 9M 2018 – Highlights 2. 9M 2018 – Financial results 3. Appendix
Slide 12: Outright power hedging in Germany and Nordic
Outright power hedging in Germany and Nordic Outright position – baseload power price >80% >75% >15% €/MWh >85% >70% >50% 35 30 25 20 Status: September 2018 15 2018 2019 2020 Achieved price Germany Hedge ratio Germany Achieved price Nordic Hedge ratio Nordic Uniper SE, Presentation 9M 2018, 13 Nov 2
Slide 13: Group EBIT(DA) – Modest earnings development in 9M 2018
Group EBIT(DA) – Modest earnings development in 9M 2018 Adj. EBIT development by segment in 9M 2018 Highlights €m (-) Intra-year CO2 phasing effect across all segments (excluding -20 -152 International Power) - to revert in Q4 952 European Generation -333 -61 (-) Lower outright prices and spread
Slide 14: European Generation – Positive regulation and volume effects
European Generation – Positive regulation and volume effects Adj. EBIT development by sub-segment in 9M 2018 Main effects €m Hydro 15 25 (+) Net provision one-off 8 (+) Reduced hydro property tax -68 (-) Lower achieved prices 280 260 Nuclear (+) Nuclear capacity tax abolished 9M 2017 Hydro N
Slide 15: Global Commodities – Lower gas optimization result
Global Commodities – Lower gas optimization result Adj. EBIT development by sub-segment in 9M 2018 Main effects TBU €m Gas (-) Settlement of Yuzhno-Russkoye hedging result in Gas -83 56 (-) Lapse of renegotiation result with 278 Gazprom -13 -113 126 (-) Provisioning for pending arbitrations Yu
Slide 16: International Power – Lapse of insurance payment
International Power – Lapse of insurance payment Adj. EBIT development by sub-segment in 9M 2018 Main effects TBU €m Russia (-) Lapse of Berezovskaya insurance payment (-) Decreased electricity margins 537 5 due to lower generation volumes and -338 higher fuel costs 204 (-) Negative FX effects
Slide 17: Group – Adjusted EBIT(DA) by segment
Uniper Group – Adjusted EBIT(DA) by segment Adj. EBITDA €m 9M 2018 9M 2017 % European Generation 600 611 -1.8 Global Commodities 208 343 -39.4 International Power 279 608 -54.1 Administration / Consolidation -196 -139 -41.0 Total 891 1,423 -37.4 Adj. EBIT €m 9M 2018 9M 2017 % European Generation 260
Slide 18: Group – Adjusted EBIT(DA) by sub-segment
Uniper Group – Adjusted EBIT(DA) by sub-segment Adj. EBITDA and EBIT 9M 2018 9M 2017 9M 2018 9M 2017 €m Adj. EBITDA Adj. EBITDA Adj. EBIT Adj. EBIT European Generation Hydro 305 274 245 230 Nuclear 91 69 46 21 Fossil 229 302 -4 64 Other/ Consol. -25 -34 -27 -35 Subtotal 600 611 260 280 Global Commod
Slide 19: Group – Key P&L items at a glance
Uniper Group – Key P&L items at a glance Key P&L items €m 9M 2018 9M 2017 Sales 53,059 52,938 Adjusted EBITDA 891 1,423 Economic depreciation and amortization / reversals -505 -471 Adjusted EBIT 386 952 Non-operating adjustments -1,126 8 EBIT -740 960 Net interest income / expense1 -1 -17 Other fina
Slide 20: Group – Adjusted EBITDA to net income
1,362 Uniper Group – Adjusted EBITDA to net income Reconciliation Adj. EBITDA 9M 2018 to net income 9M 2018 €m 891 - 505 386 - 113 -550 300 -731 -361 -31 Adj. D&A Adj. Economic MTM Net Other Taxes on Net EBITDA EBIT interest, taxes, Derivatives impairments non- Income 1 minorities operating earnings
Slide 21: Group – Economic interest expense (net)
Uniper Group – Economic interest expense (net) Economic interest expense of the Uniper Group €m 9M 2018 9M 2017 Interest from financial assets / liabilities 9 -1 Interest cost from provisions for pensions and similar provisions -13 -15 Accretion of provisions for retirement and obligation and other
Slide 22: Group – Non-operating adjustments
Uniper Group – Non-operating adjustments Non-operating adjustments €m 9M 2018 9M 2017 Net book gains / losses 31 - Fair value measurement of derivative financial instruments 731 -72 Restructuring / cost management expenses -51 13 Non-operating impairment charges / reversals 361 34 Miscellaneous othe
Slide 23: Group – Cash effective investments
Uniper Group – Cash effective investments Investments by segment €m 9M 2018 9M 2017 % European Generation 225 318 -29.2 Global Commodities 12 28 -57.1 International Power 129 134 -3.7 Administration / Consolidation 21 32 -34.4 Total 387 512 -24.4 Investment split – maintenance and growth €m 9M 2018
Slide 24: Group – Net financial position
Uniper Group – Net financial position Net financial position of the Uniper Group €m 30 Sep 2018 31 Dec 2017 Liquid funds 1,276 1,027 Non-current securities 91 104 Financial liabilities -3,581 -1,923 Net financial position -2,214 -792 Provisions for pensions and similar obligations -655 -676 Asset re
Slide 25: Group – Consolidated balance sheet (1/2)
Uniper Group – Consolidated balance sheet (1/2) Balance sheet of the Uniper Group – assets €m 30 Sep 2018 31 Dec 2017 Goodwill 1,839 1,890 Intangible assets 794 819 Property, plant and equipment 10,978 11,496 Companies accounted for under the equity method 464 448 Other financial assets 772 814 Equi
Slide 26: Group – Consolidated balance sheet (2/2)
Uniper Group – Consolidated balance sheet (2/2) Balance sheet of the Uniper Group – equity and liabilities €m 30 Sep 2018 31 Dec 2017 Capital stock 622 622 Additional paid-in capital 10,825 10,825 Retained earnings 3,011 3,399 Accumulated other comprehensive income -3,431 -2,699 Equity attributable
Slide 27: Group – Consolidated statement of cash flows
Uniper Group – Consolidated statement of cash flows Statement of cash flows of the Uniper Group €m 9M 2018 9M 2017 Net income / loss -521 782 Depreciation, amortization and impairment of intangibles / property, plant, equipment 875 520 Changes in provisions -224 -357 Changes in deferred taxes -207 1
Slide 28: Contact your Investor Relations team
Uniper – Contact your Investor Relations team Uniper SE Udo Giegerich Marc Koebernick Investor Relations Executive Vice President Head of Investor Relations (SVP) E.ON-Platz 1 Group Finance & Investor Relations +49 211 4579 4489 40479 Duesseldorf udo.giegerich@uniper.energy marc.koebernick@uniper.en
Slide 29: Financial calendar & further information
Financial calendar & further information Financial calendar Further information 12 March 2019 https://ir.uniper.energy Annual Report 2018 07 May 2019 Quarterly Statement January – March 2019 08 August 2019 Interim Report January – June 2019 12 November 2019 Quarterly Statement January – September 20
Slide 30: Disclaimer
Disclaimer This document and the presentation to which it relates contains information relating to Uniper SE, ("Uniper" or the "Company") that must not be relied upon for any purpose and may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for