Rwe Ag · XETR:RWE
Rwe — Debt Investor Presentation (March 2023)
38 slides from Rwe's debt investor presentation, March 2023
Slide 1: Credit Investor Presentation
Credit Investor Presentation March 2023
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: Contents
Contents 1. Company overview 2. RWE Clean Energy 3. Energy transition 4. Credit and financial strength 5. Funding strategy March 2023 Credit Investor Presentation Page 3
Slide 4: Company overview: what we focus on
RWE’s company overview What we focus on ~8 GW • Profile & A leading operator of green generation Main activities assets with strong commercial platform in operation • HQ Location Essen/Germany ~24 GW • Employees ~18,300 green generation capacity in • Track record in the renewables business operation
Slide 5: RWE now with leading positions in all core markets
RWE’s company overview RWE now with leading positions in all core markets No No No No No Global US US UK Europe Offshore Solar Wind & Solar Wind & Solar Wind & Solar Note: Offshore market excluding China. March 2023 Credit Investor Presentation Page 5
Slide 6: Business model fully aligned with our strategic focus on the energy transition
RWE’s company overview Business model fully aligned with our strategic focus on the energy transition Core Non-Core Offshore Onshore Hydro/Biomass/ Supply Coal/Nuclear Wind Wind/Solar Gas & Trading • Global offshore • Onshore, solar and • Hydro, biomass and • Trading/origination • German lignite act
Slide 7: RWE's Growing Green strategy: Leading the way to a green energy world
RWE’s company overview RWE’s Growing Green strategy: Leading the way to a green energy world Sustainability is at the heart of our strategy: our ambition is to reduce GHG emissions in line with a 1.5°C compliant pathway and to become net zero by 2040 RWE is perfectly positioned: vast experience in g
Slide 8: Contents
Contents 1. Company overview 2. RWE Clean Energy 3. Energy transition 4. Credit and financial strength 5. Funding strategy March 2023 Credit Investor Presentation Page 8
Slide 9: RWE's US portfolio strengthened by the formation of RWE Clean Energy
RWE Clean Energy RWE’s US portfolio strengthened by the formation of RWE Clean Energy following the acquisition of Con Edison Clean Energy Businesses Combined portfolio of • RWE expands US Wind/Solar footprint operating assets Onshore Wind to 8 GW of renewable energy projects 60% Solar Wind 8% Batte
Slide 10: Stepping up footprint and growth in highly attractive US renewables market
RWE Clean Energy Stepping up footprint and growth in highly attractive US renewables market Acquisition enables RWE to become one of the key leading RES players in the US with the largest pipeline in the region – US renewables growth expected to outpace Europe US renewables market has strong growth
Slide 11: Combined US renewables business will accelerate growth in 2030-green portfolio
RWE Clean Energy The combined US Renewables Well balanced business will accelerate growth in 2030-green portfolio 2 North America Flexible Offshore Onshore Wind Generation/ by technology wind 15% Massive >24 GW 25% Hydrogen increase in 24.5 35% >50 GW Onshore development combined US GW 20% Solar Win
Slide 12: Acquisition and future growth fully funded
RWE Clean Energy Acquisition and future growth fully funded Earnings accretion Attractive valuation Transaction & growth fully funded EBITDA from operating enterprise value Capital increase via assets implies mandatory convertible multiple as (post PPA) of long-term March 2023 Credit Investor Presen
Slide 13: Contents
Contents 1. Company overview 2. RWE Clean Energy 3. Energy transition 4. Credit and financial strength 5. Funding strategy March 2023 Credit Investor Presentation Page 13
Slide 14: Leading the way to a green energy world
RWE’s energy transition 2019 2022 2023 By 2030 Green net investments €1.5bn €4.4bn >€30bn Green net Leading capacity growth 25GW 29GW >35GW >50GW the way to a Adj. core 88% 88% 85% 100% green energy EBITDA share1 world Taxonomy aligned n/a 83% >90% capex Coal capacity 13.4GW 8.3GW 8.3GW 0GW 1 Includ
Slide 15: Consistently driving forward our Growing Green strategy
RWE’s energy transition Consistently driving forward our Growing Green strategy GROWING GREEN EXECUTION ACCELERATION Our strategic roadmap to 2030 As planned and even exceeded Broadening green strategic footprint Capital Market Day 2021 2022 2023+ • €50bn gross cash • Financial targets exceeded • St
Slide 16: RWE accelerates its decarbonisation path by exiting coal in 2030
RWE’s energy transition RWE accelerates its decarbonisation path by exiting coal in 2030 Accelerated coal phaseout path by 8 years1 Coal/Nuclear share in EBITDA Capacity development relative share (%) Coal exit 2030 Coal exit 2038 Core business Coal/Nuclear 10 76 85 100 90 24 15 31 Dec 31 Dec 31 Dec
Slide 17: Our gross investment in green growth will exceed €50 billion
RWE’s energy transition Our gross investment in green growth will exceed €50 billion in the current decade Share from gross cash investments by technology: Share by region: Offshore wind United Kingdom Green investment programme + Germany of gross Onshore wind, solar and batteries 2021 – 2030 United
Slide 18: Contents
Contents 1. Company overview 2. RWE Clean Energy 3. Energy transition 4. Credit and financial strength 5. Funding strategy March 2023 Credit Investor Presentation Page 18
Slide 19: Solid investment grade rating on the back of strong financial performance
RWE’s credit & financial strength Solid investment grade rating on the back of strong and sustainable financial performance Credit rating • Stable & sustainable earnings backed by balanced financial position • Commitment to strong investment grade rating • Credit ratings continuously improved “The B
Slide 20: Continued improvement in net debt position and balanced mix of debt instruments
RWE’s credit & financial strength Continued improvement in net debt position and a balanced mix of debt instruments RWE net debt1 Debt split (2022) (€ billion) Commercial USD paper 6.9 15% Bank 4% debt 4.4 96% EUR By 48% By type2 currency3 Bonds 37% (0.4) (1.6) 2019 2020 2021 2022 1 Net debt definit
Slide 21: Various instruments secure our liquidity requirements
RWE’s credit & financial strength Various instruments secure our liquidity requirements and our ability to invest sustainably 31 Dec 2022 Cash and Marketable securities €21bn Additional bank facilities including guarantee facilities €9.2bn Commercial Paper Programmes1 €5bn $3bn Sustainability Linked
Slide 22: Stable and sustainable earnings profile
RWE’s credit & financial strength Stable and sustainable earnings profile Gross margin Gross margin split Gross margin split Wind/Solar Flexible generation 2021 – 2023 PPAs/Tax Credit Capacity payments/ Merchant 10% ancillary services 12+ 30% Merchant 25% 35% years 30% Certificates Weighted average
Slide 23: Key Messages – Delivering growth and value
RWE’s credit & financial strength Key Messages – Delivering growth and value Green Stable & Strict Robust liquidity investments sustainable balance sheet management 2021 – 2030 earnings management €30bn 70% Commitment to strong €17bn Net cash investments Secured / contracted investment grade rating
Slide 24: Contents
Contents 1. Company overview 2. RWE Clean Energy 3. Energy transition 4. Credit and financial strength 5. Funding strategy March 2023 Credit Investor Presentation Page 24
Slide 25: Issuances and maturities of RWE's bonds
RWE’s funding strategy Issuances and maturities of RWE’s bonds RWE’s bond maturity profile with Green Bonds RWE’s issuances as preferred financing tool for future growth 2021: 3x Green Bonds with a total volume of €1.85bn Green Bonds Hybrid Bonds at First Call Date Conventional Bond 2022: (€ million
Slide 26: RWE will be a frequent issuer of green bonds
RWE’s funding strategy RWE will be a frequent issuer of green bonds • Funding strategy serves RWE’s transition to a pure Type renewables player • Conventional bonds only on an exceptional basis • Driven by liquidity requirements and market 100% of Volumes circumstances proceeds will be allocated Ten
Slide 27: Green bonds foster our renewables investments
RWE’s funding strategy Green bonds foster our renewables investments Green bond eligible projects – selected examples Offshore Wind Onshore Wind Solar & Storage Solar Sofia Blackjack Creek Firth Standard Limondale 1,400 MW 240 MW 287 MW1 249 MW COD 2026 COD 2022 COD 2023 COD 2021 under under in oper
Slide 28: Plain vanilla Green Financing Framework
RWE’s funding strategy Plain vanilla Green Financing Framework that only allows for high quality – dark green – renewables projects RWE’s Green Financing Framework1 is aligned with SDG 7.2: ’increase substantially the share of renewable energy in the global energy mix’ and based on: ICMA and LMA Pri
Slide 29: Leading the way to a green energy world
Leading the way to a green energy world Society Customers Employees Shareholders & Fixed Income We deliver the energy We supply green We offer a highly transition and will energy solutions attractive & international Investors become net zero by and support the working environment with We create 2040
Slide 30: Annex
Annex March 2023 Credit Investor Presentation Page 30
Slide 31: RWE to become coal free in 2030
RWE to become coal free in 2030 RWE, together with federal and state governments in Germany, has reached agreement to close its lignite business in 2030 Agreement provides for a full exit from lignite power generation in 2030, creating the base to reduce our emissions in line with a 1.5°C compliant
Slide 32: Agreement with German government sets the stage for accelerating RWE's coal exit
Agreement with German government sets the stage for accelerating RWE’s coal exit while ensuring security of supply Enhancement of Closure of RWE Support energy Strong emphasis short-term energy lignite power transition and on Just Transition security plants by 2030 security of supply Lifetime for 1.
Slide 33: 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 34: 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 35: Strong outlook for full year 2023
Strong outlook for full year 2023 due to capacity additions and normalised wind and earnings expectations Group outlook FY 2023 Divisional outlook FY 2023 – adj. EBITDA (€ million) (€ million) FY2021 FY 2022 Outlook FY 2022 Outlook Core adj. EBITDA 5,559 4,800 – 5,400 Offshore Wind 1,412 1,400 – 1,8
Slide 36: Economic net debt
Economic net debt Net assets/net debt (€ million) 31 Dec 2022 31 Dec 2021 +/- Cash and cash equivalents 6,988 5,825 1,163 Net debt definition Marketable securities 13,730 8,347 5,383 • Net debt does not contain Other financial assets 8,543 12,403 -3,860 mining provisions, which Financial assets 29,2
Slide 37: Improved net debt position at the end of 2022
Improved net debt position at the end of 2022 despite €4.4bn investments in green growth Development of net debt in FY 2022, € billion (+ 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 inve
Slide 38: Your contacts at RWE
Your contacts at RWE Important Links Financial Calendar • Annual and interim reports & statements • 04 May 2023 Annual General Meeting • Bonds at a glance • 11 May 2023 Interim statement on the first quarter of 2023 • Credit ratings • 10 August 2023 Interim report on the first half of 2023 • Green B