Slide 1: Q1 2017 Results Presentation
Q1 2017 Results Presentation Investor and Analyst Conference Call 15 May 2017 Markus Krebber Gunhild Grieve Chief Financial Officer Head of Investor Relations
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 infor- mation currently available to the management. Forward-looking statements shall not be construed as a pro
Slide 3: Q1 2017 – key messages
Q1 2017 – key messages > RWE consolidated Group’s Q1 2017 operational performance in line with expectations at moderately below previous year. Outlook for 2017 confirmed. > RWE stand-alone: Solid start to 2017 and guidance for 2017 confirmed > Successful participation in UK capacity auction for 2017
Slide 4: Development of EBITDA dominated by lower generation margins in Lignite & Nuclear
Development of EBITDA dominated by lower generation margins in Lignite & Nuclear Group RWE stand-alone (€ million) > Lignite & Nuclear: 2,278 Q1 20161 722 Declining generation margins > European Power: -193 Lignite & Nuclear -193 Margin decline overcompensated by positive commercial asset +19 optimi
Slide 5: Lignite & Nuclear – Driven by lower realised generation margins
Lignite & Nuclear – Driven by lower realised generation margins Key financials Q1 2017 versus Q1 2016: Q1 Q1 Lower realised generation margins € million 2017 2016 change Lower nuclear generation volumes due to maintenance cycle Adj. EBITDA 213 406 -193 Weather related lower income at Mátra t/o non-r
Slide 6: European Power – Good start to 2017 due to high contribution from commercial asset optimisation
European Power – Good start to 2017 due to high contribution from commercial asset optimisation Key financials Q1 2017 versus Q1 2016: Q1 Q1 Significantly higher income from commercial asset € million 2017 2016 change optimisation Operating cost improvements UK 101 128 -27 Lower realised generation
Slide 7: Hedging – Fully hedged position for 2018 and implicit fuel hedge for 2019 and 2020 increased
Hedging – Fully hedged position for 2018 and implicit fuel hedge for 2019 and 2020 increased Expected positions and hedge status as of 31 March 2017 Outright ~31 ~27 ~26 ~27 (Lignite & ~100 TWh 85 – 90 TWh 80 – 85 TWh 80 – 85 TWh Nuclear) >90% >90% >80% >70% 2017E 2018E 2019E 2020E Open position Ful
Slide 8: Supply & Trading – Solid start to the year based on good trading result
Supply & Trading – Solid start to the year based on good trading result Key financials Q1 2017 versus Q1 2016: Q1 Q1 Good trading result but below very strong Q1 2016 € million 2017 2016 change Absence of disposal of Lynemouth power plant in Q1 2016 Adj. EBITDA 146 167 -21 Adjustment of long-term ga
Slide 9: Adjusted net income Q1 2017 reaches €0.2 billion
Adjusted net income Q1 2017 reaches €0.2 billion Group RWE stand-alone (€ million) > RWE stand-alone adj. EBITDA Adj. EBITDA 514 includes operating income from 2,131 Lignite & Nuclear, European Power and Supply & Trading and dividend Adj. depreciation -152 from innogy (reflected in Q2) -508 > Financ
Slide 10: Q1 2017 distributable cash flow still excluding innogy dividend
Q1 2017 distributable cash flow still excluding innogy dividend RWE stand-alone1 (€ million) > Changes in provisions Adj. EBITDA 514 – Seasonal pattern of additions to CO2 provisions (reversal in Q2) Change in provisions & 128 other non-cash items – Low utilisation of nuclear and restructuring provi
Slide 11: RWE stand-alone net debt nearly unchanged compared to end of 2016
RWE stand-alone net debt nearly unchanged compared to end of 2016 Development of net debt (RWE stand-alone) (€ million) 6,858 133 0 -45 462 -359 -18 7,031 Net debt Distributable Dividend Financial Other Change in Change in Net debt 31 Dec 2016 cash flow RWE AG investments/ changes in provisions hybr
Slide 12: RWE stand-alone – Outlook for 2017 confirmed
RWE stand-alone – Outlook for 2017 confirmed 2016 2017 €1.6 bn – €1.9 bn Adjusted EBITDA €1.9 bn -€0.9 bn Adj. depreciation > Reduction by ~€0.3 bn from impairments > Reduction in interest accretion to provisions (€0.4 – 0.5 bn) -€1.0 bn Adj. net financial result > Lower losses from sale of securiti
Slide 13: Appendix
Appendix RWE AG | Q1 2017 Conference Call | 15 May 2017 13
Slide 14: Income statement Q1 2017
Income statement Q1 2017 (€ million) RWE stand-alone RWE Group Revenue (including natural gas tax/electricity tax) 5,162 13,294 Natural gas tax/electricity tax -36 -762 Revenue 5,126 12,532 Other operating result 55 -249 Cost of materials -4,103 -8,794 Staff costs -437 -1,156 Depreciation, amortisat
Slide 15: Balance sheet Q1 2017
Balance sheet Q1 2017 (€ million) RWE stand-alone RWE Group Assets Intangible assets 1,041 12,770 Property, plant and equipment 6,884 24,655 Investment property 43 59 Investments accounted for using the equity method 640 2,936 Other financial assets1 15,335 1,060 Inventories 1,233 1,649 Financial re
Slide 16: Net debt Q1 2017
Net debt Q1 2017 (€ million) RWE stand-alone RWE Group Cash and cash equivalents 2,245 3,696 Marketable securities 7,644 10,437 Other financial assets 1,522 1,834 Financial receivables against innogy 3,856 - Financial assets 15,267 15,967 Bonds, other notes payable, bank debt, commercial paper 4,770
Slide 17: Reconciliation to Q1 2017 adjusted net income
Reconciliation to Q1 2017 adjusted net income (€ million) RWE stand-alone RWE Group Reported Adjustments Adjusted Reported Adjustments Adjusted Adjusted EBITDA 514 0 514 2,131 0 2,131 Depreciation -152 0 -152 -508 0 -508 Adjusted EBIT 362 0 362 1,623 0 1,623 Non-operating result 136 -136 0 277 -277
Slide 18: Higher Group net debt due to seasonal negative cash balance
Higher Group net debt due to seasonal negative cash balance Development of net debt (RWE Group) (€ billion) 22.7 1.1 +0.4 +0.1 -0.2 -0.5 0.1 23.7 Negative cash balance: 1.6 Net debt Cash flows Capex on Dividends Divestments Changes Others Net debt 31 Dec 2016 from opera- property, plant incl. in pen
Slide 19: Net debt for RWE stand-alone significantly lower than market value of RWE's stake in innogy
Net debt for RWE stand-alone significantly lower than market value of RWE’s stake in innogy As of 31 March 2017 (€ billion) Financial assets and receivables 15.3 23.7 16.7 > Financial receivables against innogy 3.9 > Financial assets 11.4 Financial liabilities 11.7 > Bonds, bank debt, commercial pap
Slide 20: RWE Group: Outlook for 2017 confirmed
RWE Group: Outlook for 2017 confirmed Actuals 2016 2017 forecast1 (€ million) Adjusted 5,403 5,400 – 5,700 EBITDA 1,079 Lignite & Nuclear Significantly below 2016 377 European Power Significantly below 2016 -139 Supply & Trading Significantly above 2016 4,203 innogy Moderately above 2016 Adjusted 1,
Slide 21: Power prices and commodities
Power prices and commodities Base load power prices – Germany, NL (1 year forward) Base load power prices – UK (1 year forward) €/MWh €/MWh 45 100 40 90 35 80 NL 30 70 Germany UK 25 60 20 50 15 40 Jan'15 Jul'15 Jan'16 Jul'16 Jan'17 Jan'15 Jul'15 Jan'16 Jul'16 Jan'17 Coal prices – API2 Cal-ahead Gas
Slide 22: Clean Dark and Spark Spreads – 2015-2018 forwards for Germany, UK and NL
Clean Dark (CDS) and Spark Spreads (CSS) – 2015 - 2018 forwards for Germany, UK and NL1 Germany UK2 Netherlands Cal15 Cal16 Cal17 Cal18 Cal15 Cal16 Cal17 Cal18 Cal15 Cal16 Cal17 Cal18 €/MWh €/MWh 20 20 Ø16.97 15 15 Ø10.52 Ø11.21 10 10 Ø6.63 Ø7.13 Ø9.18 Ø7.02 Ø5.80 Ø4.83 5 Ø5.59 5 Ø3.10 Ø1.97 Ø3.65 Ø
Slide 23: RWE Investor Relations – contacts
RWE Investor Relations – contacts Important Links Contacts for Institutional Investors & Financial Analysts Annual and Interim Reports http://www.rwe.com/ir/reports/ Gunhild Grieve Lenka Zikmundova Head of Investor Relations Tel.: +49 201 12-15046 Investor and Analyst Conferences Tel. +49 201 12-151
Slide 24: POWERING. RELIABLE. FUTURE.
POWERING. RELIABLE. FUTURE. ED” AK =