Uniper Se · XETR:UN0
Uniper — FY2019 Earnings Presentation
52 slides from Uniper's earnings presentation, Mar 10, 2020
Slide 1: Empower Energy Evolution – Full-year 2019 Strategic & Financial Update
Empower Energy Evolution Full-year 2019 Strategic & Financial Update Andreas Schierenbeck – CEO Sascha Bibert – CFO 10 March 2020
Slide 2: Agenda
Agenda Full-Year 2019 Strategic Update Financial Update Appendix 2
Slide 3: Highlights
Highlights Fortum Team Performance Portfolio & Strategy Shareholders New Board of Management Adj. EBIT FY 2019 of €863m Clearly committed timetable Fortum has supported complete in line with increased gui- for exiting hard coal in Uniper’s strategy and dance on back of strong Q4 Germany fina
Slide 4: Results FY 2019 – Fully in line with increased outlook
Results FY 2019 – Fully in line with increased outlook Adj. EBIT Adj. EBITDA Adj. FFO Dividend2 €m €m €m €m 1.050 1,543 1,561 923 865 950 756 421 863 850 329 750 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 FY 2018 FY 2019 Adj. Net Income Net Income1 Economic Net Debt & Rating €m €m 610 €m 687 61
Slide 5: Adj. EBIT FY 2019 – Prior year one-offs compensated
Adj. EBIT FY 2019 – Prior year one-offs compensated Reconciliation of Adjusted EBIT FY 2018 to FY 2019 Key Messages €m Significant YoY effect from provision movements Positive business development: Generation: upside from UK capacity income & higher outright result, only slightly offset by lower a
Slide 6: Operating Cash Flow FY 2019 – Driven by strong Q4
Operating Cash Flow FY 2019 – Driven by strong Q4 Reconciliation of Adjusted EBIT FY 2019 to Operating Cash Flow FY 2019 €m 1,561 1,011 Adj. EBIT D&A Adj. EBITDA Non-cash Provision Chg. net Payments OCFbIT Interest Tax OCF FY 2019 FY 2019 effective utilization working non-op. FY 2019 FY 2019 EBITDA
Slide 7: Economic Net Debt FY 2019 – Interest rate impact
Economic Net Debt FY 2019 – Interest rate impact Reconciliation of Economic Net Debt YE 2018 to YE 2019 €bn 3.2 0.1 2.7 0.9 2.5 0.2 0.0 0.7 -0.7 1.0 0.9 0.8 -0.3 0.3 0.8 1.0 -0.9 1.5 0.8 0.6 Economic Margining Economic Divest OCF Dividend Investments Pensions ARO Other Economic Net Debt adjustment N
Slide 8: Outlook FY 2020 – Positive bottom-line development
Outlook FY 2020 – Positive bottom-line development Adjusted EBIT Adjusted Net Income (ANI) Dividend €m 1,000 €m €m 863 500 Range 800 421 1.371 750 1.151 614 Range 550 FY 2019 FY 2020E FY 2019 FY 2020E FY 2019 FY 2020E Stable development Noticeably increased Higher dividend target 2020 Contribution f
Slide 9: Adj. EBIT FY 2020 – Legacy projects to be finalized
Adj. EBIT FY 2020 – Legacy projects to be finalized Reconciliation of Adjusted EBIT FY 2020E vs. FY 2019 €m 1,000 863 Range 750 Adj. EBIT Commodity Fossil fleet Commissioning Outright Other Adj. EBIT FY 2019 optimization (incl. RUS) Datteln 4 & (nuclear FY 2020E 1 Berezovskaya 3 provisions) 1. Comme
Slide 10: Agenda
Agenda Full-Year 2019 Strategic Update Financial Update Appendix 10
Slide 11: Uniper's evolutionary steps
Uniper’s evolutionary steps To open seas Setting the Operations improved Growth in security-of-supply initiated sails Legacy projects about to be finalized 2018-2019 Total shareholder return >200% since IPO1 CO2-reduction >36% since 20162 Cash optimized Tightening Portfolio streamlined
Slide 12: Empower energy evolution – Towards carbon neutrality
Empower energy evolution – Towards carbon neutrality Hydro Nuclear Clean thermal Renewables Green gas generation Vision for a clean energy portfolio Strategic Update 12
Slide 13: Ambition to drive decarbonization
Ambition to drive decarbonization European Generation International Power Global Commodities mt CO2 1 50 44.2 40 Status quo 30 24.7 22.1 20 Net zero 10 target 0 2016 2019 2035E Variety of activities aimed at Carbon neutral by 2035 carbon emission reductions 1. Direct emissions - scope 1 Source photo
Slide 14: Uniper's new strategy – Clear transition agenda
Uniper‘s new strategy – Clear transition agenda Coal Gas generation & Carbon-free generation gas midstream generation EBIT EBIT EBIT 2019 2019 2019 Decarbonize Expand & decarbonize Expand Exit path for hard coal and lignite fleet Expand Customer Solutions business Expand carbon-free position b
Slide 15: Coal power exit – De-risking portfolio and protecting cash flows
Coal power exit – De-risking portfolio and protecting cash flows Uniper‘s coal fleet – Exit path Key messages MW Power portfolio to be de-risked Schkopau ► 900 MW Exit from lignite-fired power generation in 9,000 Scholven ► 760 MW Europe by autumn 2021 Wilhelmshaven ► 757 MW Coal generation Heyd
Slide 16: New investment opportunities for our brownfield sites
New investment opportunities for our brownfield sites Uniper‘s power plant sites New solutions Plans for own and 3rd party use Offering power assets & services for new applications or new security-of-supply solutions Coal generation Site conversion to industrial hubs Wilhelms- haven Attract ne
Slide 17: Materialize merchant upside of existing gas-fired generation
Materialize merchant upside of existing highly efficient gas-fired power generation Uniper’s gas-fired fleet with load factors (2019) Uniper‘s gas plants well positioned GW 9 utilized non-utilized non-util Gas generation & gas midstream 6 UK Germany 3 0 Russia Uk UK Ger GER Other 1 Fuel switch ong
Slide 18: Gas-fired generation as key element for growth and carbon reduction
Gas-fired generation as key element for growth and carbon reduction Gas generation & gas midstream Solutions for Solutions for Modernization TSO industrial of gas-fired customers customers plants New TSO grid stability products in Low carbon steam/energy solutions with Winner of tenders to ref
Slide 19: Gas as key enabler of the energy transition – Hydrogen
Gas as key enabler of the energy transition – Hydrogen making net zero possible Uniper‘s gas portfolio Uniper pushing for hydrogen Sales business Gas fleet, Hydrogen is key to climate neutrality as ~300 TWh contracts with TSOs electrification alone cannot achieve Gas generation & gas midstream cli
Slide 20: Uniper's reliable carbon-free portfolio today
Uniper‘s reliable carbon-free portfolio today ~11 TWh p.a. of nuclear production in SWE Concessions for Oskarshamn 3, Forsmark 1-3 & Ringhals 3-4 run into early to mid 2040ies 1.4 GW Carbon-free generation ~13 TWh p.a. of hydro production in SWE & GER Concessions to operate are either unlimited
Slide 21: Strategic ambitions impact steering
Strategic ambitions impact steering Capex geared towards growth & focused on Adjust financial steering & reporting KPI empowering energy evolution to growing business around providing Strengthen / protect current zero-carbon flexibility & security of supply portfolio Continue successful trac
Slide 22: Agenda
Agenda Full-Year 2019 Strategic Update Financial Update Appendix 22
Slide 23: FY 2016 – FY 2019 with strong delivery on strategic plan
FY 2016 – FY 2019 with strong delivery on strategic plan Increased Reduced commodity Portfolio & capital Attractive cash generation price exposure use optimized shareholder return Adjusted FFO Non-wholesale earnings Economic Net Debt Dividend €m % €m €m 923 4,167 421 2,650 479 201 30% >50% BBB- BBB
Slide 24: Key financial aspirations
Key financial aspirations Earnings Investment policy Strong balance sheet Simplified steering & improvement focused on growth and focus on rating dividend policy BBB Ambition to increase Increasing Growth Focus to retain rating Introduction of CAPEX Adj. Net Income as KPI Growing share of carbon- Fo
Slide 25: 2022 – Key drivers
2022 – Key drivers Growth projects with substantial contribution Declining earnings from fossil businesses Lower fossil spread margins Russia: Lower capacity UK: Lower capacity payments payments (shift from CSA to Earnings and lapse of 2018/19 benefit KOM remuneration scheme) Datteln 4 to start in e
Slide 26: Investment policy revised – Focused growth
Investment policy revised – Focused growth Investment plan FY 2020 - 2022: €2.7bn Growth capex: >€1.5bn with clear focus 1,200 ~25% ~75% Investment policy 900 600 Legacy growth projects New growth projects 300 Datteln 4 Irsching 6 Berezovskaya 3 Scholven 0 Russian modernization 2018 2019 2
Slide 27: Financial framework with clear boundaries
Financial framework with clear boundaries Investments – new hurdle concept Retain BBB credit rating Economic Net Debt / EBITDA +100 BPS +200 BPS 2.0x “green” “other“ 1.7x BBB Balance sheet stable 1.8x BBB+ WACC after tax stable (segment & country specific) FY 2019 FY 2022E Fixed-mark up on WACC af
Slide 28: Dividend outlook
Dividend outlook Free cash flow based policy Outlook Key messages €m Balance between attractive shareholder 600 renumeration and growth CAPEX: Dividend policy & steering 1.37 Previous free cash flow based payout 1.15 policy, i.e. 75%-100% of FCfO, is replaced 400 by an absolute dividend target 0.9
Slide 29: Key takeaways
Key takeaways Execution 1 Strong Performance 3 in progress 2019 Ambition 2 Clear way forward 4 to grow earnings & dividend Strategic and Financial Update 29
Slide 30: Agenda
Agenda Full-Year 2019 Strategic Update Financial Update Appendix 30
Slide 31: Appendix
Appendix Operating KPIs Commodity prices and hedging Financials 31
Slide 32: Uniper – Operating indicators
Uniper – Operating indicators Global Commodities – European Generation – International Power – Key messages Gas storage filling1 Production volume2 Production volume Global Commodities TWh TWh TWh Gas storage filling levels at 76% 100% 90 -14% 60 -1% maximum 105 European Generation 90 75 50 Fuel
Slide 33: Appendix
Appendix Operating KPIs Commodity prices and hedging Financials 33
Slide 34: Commodity markets – Volatile trend
Commodity markets – Volatile trend Carbon trading prices1 Gas prices2 Electricity prices3 Dark & spark spreads4 €/t CO2 €/MWh €/MWh €/MWh 30 22 60 4 25 20 50 2 20 18 40 0 15 16 30 -2 10 14 20 Germany -4 CO2 TTF CDS-DE Nordic CSS-DE 5 12 10 -6 Jan 2018 Nov 2018 Sep 2019 Jan 2018 Nov 2018 Sep 2019 Jan
Slide 35: Outright power hedging in Germany and Nordic
Outright power hedging in Germany and Nordic Outright position – Baseload power price1 >100% >45% >35% €/MWh >75% >15% >0% 60 50 40 30 20 2020 2021 2022 Hedged price Germany Hedge ratio Germany Hedged price Nordic Hedge ratio Nordic 1. Status: 31 December 2019 Appendix 35
Slide 36: Appendix
Appendix Operating KPIs Commodity prices and hedging Financials 36
Slide 37: Uniper Group – Adjusted EBIT(DA) by sub-segment
Uniper Group – Adjusted EBIT(DA) by sub-segment Adj. EBITDA and EBIT FY 2019 FY 2018 FY 2019 FY 2018 €m Adj. EBITDA Adj. EBITDA Adj. EBIT Adj. EBIT European Generation Hydro 304 363 243 288 Nuclear 60 99 -3 39 Fossil 519 408 208 86 Other/ Consol. -20 -23 -24 -26 Subtotal 863 847 424 386 Global Commo
Slide 38: Adj. EBIT FY 2019 – Development by sub-segment
Adj. EBIT FY 2019 – Development by sub-segment European Generation Global Commodities International Power €m €m €m 121 3 424 386 318 18 278 308 287 30 -45 -6 -42 -43 FY 2018 Hydro Nuc. Fossil Cons. FY 2019 FY 2018 Gas COFL Power FY 2019 FY 2018 Russia FY 2019 Hydro: Lapse of H1 2018 provision Ga
Slide 39: Uniper Group – Key financial performance items
Uniper Group – Key financial performance items Reconciliation of Adj. EBITDA to Adj. net income and net income €m FY 2019 FY 2018 Adjusted EBITDA 1,561 1,543 Economic depreciation and amortization / reversals -698 -678 Adjusted EBIT 863 865 Economic interest result 17 28 Minority participations -37
Slide 40: Uniper Group – Adjusted EBITDA to Net Income
Uniper Group – Adjusted EBITDA to Net Income Reconciliation of Adj. EBIT FY 2019 to Adj. Net Income FY 2019 €m Adj. Economic Adjusted Derivative Adjustments Net Other Taxes on non- Net EBIT interest, net financial from physically impairments operating Income1 taxes, income instruments settled earnin
Slide 41: Uniper Group – Economic Interest Expense (net)
Uniper Group – Economic Interest Expense (net) Economic interest expense €m FY 2019 FY 2018 Interest from financial assets / liabilities 13 14 Interest cost from provisions for pensions and similar provisions -20 -17 Accretion of provisions for retirement and obligation and other provisions -30 -22
Slide 42: Uniper Group – Non-operating adjustments
Uniper Group – Non-operating adjustments Non-operating adjustments1 €m FY 2019 FY 2018 Net book gains / losses -7 31 Impact of derivative financial instruments -1,228 -402 Adjustments of revenue and cost of materials from physically settled commodity derivatives to the contract price 448 671 Restruc
Slide 43: Uniper Group – Cash-effective investments
Uniper Group – Cash-effective investments Investments by segment €m FY 2019 FY 2018 % European Generation 409 397 3.0 Global Commodities 27 32 -15.8 International Power 196 190 3.4 Administration / Consolidation 26 23 10.7 Total 657 642 2.4 Investment split – Maintenance and growth €m FY 2019 FY 201
Slide 44: Uniper Group – Net financial position
Uniper Group – Net financial position Net financial position €m 31 Dec 2019 31 Dec 2018 Liquid funds 889 1,400 Non-current securities 100 83 Margining receivables1 318 698 Financial liabilities and liabilities from leases 1,935 2,939 Net financial position 628 757 Provisions for pensions and similar
Slide 45: Economic net debt is almost free of borrowed money
Economic net debt is almost free of borrowed money Economic Net Debt (YE 2019) Subsidiary financial liabilities3 Interest rate sensitivities €bn €bn 2.7 Asset retirement obligations (c.p.)1 Lease liabilities 0.8 Current Interest rates: from 0% to Asset retirement 1.0 2.0% obligations Rough sen
Slide 46: Uniper Group – Consolidated balance sheet (1/2)
Uniper Group – Consolidated balance sheet (1/2) Balance sheet – Non-current and current assets1 €m 31 Dec 2019 31 Dec 2018 Goodwill 1,886 1,816 Intangible assets 742 768 Property, plant and equipment and right-of-use assets 10,201 10,612 Companies accounted for under the equity method 446 440 Other
Slide 47: Uniper Group – Consolidated balance sheet (2/2)
Uniper Group – Consolidated balance sheet (2/2) Balance sheet – Equity and liabilities1 €m 31 Dec 2019 31 Dec 2018 Capital stock 622 622 Additional paid-in capital 10,825 10,825 Retained earnings 3,145 3,088 Accumulated other comprehensive income -3,207 -3,531 Equity attributable to the shareholders
Slide 48: Uniper Group – Consolidated statement of cash flows (1/2)
Uniper Group – Consolidated statement of cash flows (1/2) Statement of cash flows1 €m FY 2019 FY 2018 Net income / loss 644 -442 Depreciation, amortization and impairment of intangible assets, of property, plant and equipment, and of 1,750 1,532 right-of-use assets Changes in provisions -700 -51 Cha
Slide 49: Uniper Group – Consolidated statement of cash flows (2/2)
Uniper Group – Consolidated statement of cash flows (2/2) Statement of cash flows1 €m FY 2019 FY 2018 Cash proceeds/payments arising from changes in capital structure 3 14 Payed dividend to the shareholder of Uniper SE -329 -271 Payed dividend to other shareholders -32 -31 Proceeds from financial li
Slide 50: Financial calendar & further Information
Financial calendar & further Information Financial calendar Further information https://ir.uniper.energy 07 May 2020 Quarterly Statement January – March 2020 20 May 2020 2020 Annual Shareholders Meeting (Duesseldorf) 11 August 2020 Interim Report January – June 2020 10 November 2020 Quarterly Statem
Slide 51: Uniper – Contact your Investor Relations team
Uniper – Contact your Investor Relations team Udo Giegerich Carlo Beck Anna Denisova Executive Vice President Manager Investor Relations Manager Investor Relations Group Finance& Investor Relations +49 211 4579 4402 udo.giegerich@uniper.energy carlo.beck@uniper.energy anna.denisova@uniper.energy Ada
Slide 52: 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