Slide 1: Full Year 2023 Results
14 March 2024 Full Year 2023 Results Markus Krebber, CEO Michael Müller, CFO Thomas Denny, Head of Investor Relations 14 Mar 2024 FY results 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: Markus Krebber
Markus Krebber Chief Executive Officer, RWE AG 14 Mar 2024 FY results 2023 Page 3
Slide 4: Strong performance in 2023 and path for profitable green growth to 2030
Strong performance in 2023 and path for profitable green growth to 2030 Strong performance in 2023: financial targets exceeded, carbon emissions significantly reduced, more ambitious long term climate targets set - in line with 1.5° emission reduction pathway Earnings guidance 2024 confirmed at lowe
Slide 5: We are well on our way to becoming a global leader in green energy
We are well on our way to becoming a global leader in green energy Step up of investments in Strong operational Significant progress green growth performance in decarbonisation >2.5x +33% -27% 11.4 8.4 83 CEB 6.3 61 6.3 acquisition 4.4 5.1 Net cash investments Adj. EBITDA CO2 emissions in EUR bn in
Slide 6: We are committed to our guidance, despite strong decline in European power prices
We are committed to our guidance, despite strong decline in European power prices Power prices Guidance for FY 2024 5.2-5.8 120 EUR/MWh 110 100 1.9-2.4 90 80 Adj. EBITDA Adj. net income 70 in EUR bn in EUR bn 60 Given current power price environment, earnings Nov’23 Dec’23 Jan’24 Feb’24 expected to
Slide 7: Our operating wind and solar business has limited open price exposure
Our operating wind and solar business has limited open price exposure Gross margin wind/solar existing operating assets in EUR bn, as of mid-February 2024 Key price-exposed positions from Price-exposed Secured existing operating assets (pre hedging) 4.3 4.5 4.3 4.1 0.5 0.8 1.0 • UK: ROC wind assets,
Slide 8: Flexible generation with increasing share of secured revenues from capacity payments
Flexible generation with increasing share of secured revenues from capacity payments Gross margin flexible generation (Illustrative) • Flexible generation with long-term increasing profitability and higher share of secured earnings • From 2025 onwards, • normalised margin of Running the asset fleet
Slide 9: Our recent capacity additions significantly increase secured revenues
Our recent capacity additions significantly increase secured revenues Wind/Solar 2023 capacity additions Wind/Solar projects currently under construction in GW in GW Price exposed Price exposed Thor <5% <5% 15% Thor with 1.1 GW of capacity 4.2 GW 6.8 GW PPAs to be signed ahead of COD >95% >80% Secur
Slide 10: Our investments will drive strong bottom-line growth; capital allocation constantly reassessed
Our investments will drive strong bottom-line growth; capital allocation will be constantly reassessed Adj. earnings per share in EUR • Strict monitoring of investment environment with clear commitment to +8% ~4.0 profitability • Capital allocation will be ~3.0 constantly reassessed in light of chan
Slide 11: Michael Müller
Michael Müller Chief Financial Officer, RWE AG 14 Mar 2024 results2023 FY results 2023 Page 11
Slide 12: Financial highlights
Financial highlights Strong earnings development across all core segments in 2023, full year guidance for 2023 exceeded High cash flow generation of operating portfolio Credit ratings confirmed by Fitch and Moody’s with BBB+/Baa2 and a stable outlook State aid approval for lignite compensation has b
Slide 13: Strong earnings development across all core segments in 2023
Strong earnings development across all core segments in 2023; exceeding full year group guidance Core adj. EBITDA in EUR m +2,114 • Offshore Wind earnings up on the back of 7,673 better wind conditions, capacity additions and higher realised power prices 1,664 • Onshore Wind/Solar increased due to 5
Slide 14: Adjusted net income increased reflecting strong operational performance
Adjusted net income increased reflecting strong operational performance Adj. net income in EUR m • Adj. EBITDA driven by strong operational FY 2021 2022 FY 2023 2022 performance in 2023 and negative one- off in 2022 Adj. EBITDA 6,310 8,378 • Adj. depreciation increased in line with FY 2023 growth in
Slide 15: Adjusted operating cash flow marked by strong operating result
Adjusted operating cash flow marked by strong operating result Reconciliation to adj. operating cash flow for FY 2023 in EUR m 8,378 -652 506 -218 7,317 -697 Adj. EBITDA Changes in Changes in Cash Cash Adj. operating provisions/ operating financial result taxes cash flow (Non-) Cash items1 working c
Slide 16: Net debt increases due to CEB acquisition, green growth and hedging timing effects
Net debt increases due to CEB acquisition, green growth and timing effects from hedging and trading activities Development of net debt in FY 2023 in EUR bn (+ net debt/- net assets) 6.6 0.7 2.5 0.9 5.1 -1.6 -7.3 6.3 Net debt Adj. operating Acquisition Net cash Dividends Other changes in Changes in N
Slide 17: Earnings guidance 2024 confirmed at lower end of guidance range (1/2)
Earnings guidance 2024 confirmed at lower end of guidance range (1/2) Group outlook FY 2024 in EUR m • Outlook confirmed despite significant decline in FY 20231 Outlook European power prices and price volatility Adj. EBITDA RWE Group 7,749 5,200 – 5,800 • Adj. EBITDA, adj. EBIT and adj. net income e
Slide 18: Earnings guidance 2024 confirmed at lower end of guidance range (2/2)
Earnings guidance 2024 confirmed at lower end of guidance range (2/2) Divisional FY 2024 outlook in EUR m FY 20231 Outlook Adj. EBITDA Offshore Wind 1,664 1,450 – 1,850 Lower margins due to decline of European power prices. Earnings contribution expected in the lower half of the guidance range. Lowe
Slide 19: Appendix
Appendix 14 Mar 2024 FY results 2023 Page 19
Slide 20: Green generation portfolio increased by 6.3 GW in 2023
Green generation portfolio increased by 6.3 GW in 2023 Development of our green generation portfolio GW pro rata +8.1 43.6 1.1 0.2 3.1 1.2 35.5 2.5 6.3 29.2 31 Dec 2022 Capacity 31 Dec 2023 Offshore Onshore Solar Batteries Flexible Total additions Wind Wind Generation & H2 Capacity in operation Proj
Slide 21: Core Offshore Wind: earnings up due to wind conditions, capacity additions, prices
Core Offshore Wind Earnings up due to better wind conditions, capacity additions and higher realised power prices Key financials FY 2023 – Offshore Wind Adj. EBITDA FY 2023 vs. FY 2022 € million FY 2023 FY 2022 Change Better wind conditions Adj. EBITDA 1,664 1,412 252 Higher earnings due to capacity
Slide 22: Core Onshore Wind/Solar: earnings up thanks to CEB acquisition and organic growth
Core Onshore Wind/Solar Earnings up thanks to CEB acquisition and organic growth Key financials FY 2023 – Onshore Wind/Solar Adj. EBITDA FY 2023 vs. FY 2022 € million FY 2023 FY 2022 Change Earnings contribution from CEB (1 March) and Adj. EBITDA 1,248 827 421 organic capacity additions t/o non-recu
Slide 23: Core Hydro/Biomass/Gas: exceptional earnings development
Core Hydro/Biomass/Gas Exceptional earnings development on the back of strong asset optimisation and higher hedged margins Key financials FY 2023 – Hydro/Biomass/Gas Adj. EBITDA FY 2023 vs. FY 2022 € million FY 2023 FY 2022 Change Higher earnings from strong asset optimisation Adj. EBITDA 3,190 2,36
Slide 24: Core Supply & Trading: strong trading performance
Core Supply & Trading Strong performance of the trading business and absence of negative one-off Key financials FY 2023 – Supply & Trading Adj. EBITDA FY 2023 vs. FY 2022 € million FY 2023 FY 2022 Change Strong performance across almost all commodities Adj. EBITDA 1,578 1,161 417 and regions t/o non
Slide 25: Non-Core Coal/Nuclear: earnings down
Non-Core Coal/Nuclear Earnings down due to more overhauls, outages and absence of Emsland nuclear power plant Key financials FY 2023 – Coal/Nuclear Adj. EBITDA FY 2023 vs. FY 2022 € million FY 2023 FY 2022 Change Higher hedged margins partly offset by lower Adj. EBITDA 705 751 -46 margins on unhedge
Slide 26: Economic net debt
Economic net debt Net assets/net debt in EUR m 31 Dec 2023 31 Dec 2022 +/- Net debt definition Cash and cash equivalents 6,917 6,988 -71 • Net debt does not contain Marketable securities 8,114 13,730 -5,616 mining provisions, which Other financial assets 2,529 8,543 -6,014 essentially cover our obli
Slide 27: Commodity prices
Commodity prices Gas TTF Cal'25 Power Baseload Germany Cal'25 50 EUR/MWh 120 EUR/MWh 45 110 100 40 -33% -34% 90 35 80 30 70 25 60 Nov’23 Dec’23 Jan’24 Feb’24 Nov’23 Dec’23 Jan’24 Feb’24 EUA Dec'25 Power Baseload UK Cal'25 90 EUR/t 120 EUR/MWh 80 110 -32% 100 -30% 70 90 60 80 50 70 Nov’23 Dec’23 Jan’
Slide 28: GB capacity market
GB capacity market Our plants in GB Capacity Market Derated Revenue from capacity market3 2019/ 2020/ 2021/ 2022/ 2023/ 2024/ 2025/ 2026/ 2027/ capacity 20 21 22 23 24 254 26 27 28 in £ million, pre inflation (MW) Aberthaw1 1,490 1,475 1,486 - - - - - - 426 Revenues Didcot B until 1,380 1,395 1,395
Slide 29: Your contacts in Investor Relations
Your contacts in Investor Relations Important Links Financial Calendar ADR programme available • Annual and interim reports & statements Further information on our homepage • 03 May 2024: Annual General Meeting • Investor and analyst conferences RWE shares/ADR • 15 May 2024: Interim statement on the