Slide 1: Q1 2018 Results Presentation
Q1 2018 Results Presentation Investor and Analyst Conference Call 15 May 2018 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 information currently available to the management. Forward-looking statements shall not be construed as a promi
Slide 3: Key messages of Q1 2018
Key messages of Q1 2018 Good start to fiscal year 2018 despite weak trading performance in Q1 – ✔ RWE stand-alone earnings outlook for 2018 confirmed Strong decline in net debt for RWE stand-alone following inflow of variation margins ✔ – outlook for year end net debt improved to moderately below la
Slide 4: Declining adjusted EBITDA mainly due to volatile trading business
Declining adjusted EBITDA mainly due to volatile trading business Group RWE stand-alone (€ million) > Lignite & Nuclear: 2,131 Q1 2017 514 Declining generation margins and closure of Gundremmingen B unit -33 Lignite & Nuclear -33 > European Power: Declining generation margins offset by -8 income fro
Slide 5: Lignite & Nuclear – driven by lower realised generation margins and closure of Gundremmingen B unit
Lignite & Nuclear – driven by lower realised generation margins and closure of Gundremmingen B unit Key financials Q1 2018 versus Q1 2017: Q1 Q1 Lower realised generation margins € million 2018 2017 change Closure of Gundremmingen B nuclear unit Operating cost improvements Adj. EBITDA 180 213 -33 t/
Slide 6: European Power – strong start into FY 2018
European Power – strong start into FY 2018 Key financials Q1 2018 versus Q1 2017: Q1 Q1 Lower realised generation margins € million 2018 2017 change Absence of positive one-offs from 2017 UK 85 101 -16 Earnings contribution from UK capacity market Continental Europe 74 65 +9 Adj. EBITDA1 159 167 -8
Slide 7: Hedging – lower average hedge price for 2020 due to strong decline of spreads since beginning of 2018
Hedging – lower average hedge price for 2020 due to strong decline of spreads since beginning of 2018 Expected positions and hedge status as of 31 March 2018 Outright Average hedge price 2018 – 2021 corresponds with average hedged CO2 price in the range of ~€5 – 6/t2 (Lignite & Nuclear) ~28 ~28 ~2
Slide 8: Significant decline of fuel spreads since end of 2017
Significant decline of fuel spreads since end of 2017 Development of German fuel spreads1 8 6 4 €/MWh 2 0 -2 -4 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Months to delivery Cal17 Cal18 Cal19 Cal20 Cal21 1 Fuel spread defined as: Power price – (pa
Slide 9: Supply & Trading – weak start into FY 2018
Supply & Trading – weak start into FY 2018 Key financials Q1 2018 versus Q1 2017: Q1 Q1 Weak trading performance in line with normal € million 2018 2017 change volatility of trading business Adj. EBITDA -24 146 -170 t/o non-recurring items1 - - - Depreciation -1 -1 - Adj. EBIT -25 145 -170 t/o non-r
Slide 10: Adjusted net income Q1 2018 reaches €78 million
Adjusted net income Q1 2018 reaches €78 million Q1 2017 RWE stand-alone Q1 2018 (€ million) Adj. EBITDA 299 > RWE stand-alone adj. EBITDA includes adj. 514 EBITDA from Lignite & Nuclear, European Power and Supply & Trading and dividend from -152 Adj. depreciation -128 innogy (inflow in Q2) > Financi
Slide 11: Q1 2018 DiCF still excluding innogy dividend and with seasonal effects in working capital
Q1 2018 DiCF still excluding innogy dividend and with seasonal effects in working capital Q1 2017 RWE stand-alone Q1 2018 (€ million) 514 Adj. EBITDA 299 > innogy dividend of €683 million will be accounted for in Q2 2018 Change in provisions & 128 -4 > Changes in provisions: Seasonal pattern of othe
Slide 12: Strong decline of net debt due to high inflow of variation margins
Strong decline of net debt due to high inflow of variation margins Development of net debt (RWE stand-alone) (€ million) 4,510 161 0 37 -1,317 181 -27 3,545 Net debt Distributable Dividend Financial Other Change in Change in Net debt 31 Dec 2017 cash flow RWE AG investments/ changes in provisions hy
Slide 13: RWE stand-alone – outlook for 2018 confirmed
RWE stand-alone – outlook for 2018 confirmed FY 2017 FY 2018e €1.4 bn – €2.1 bn Adjusted EBITDA €1.7 bn -€0.6 bn Adj. depreciation > Stable development expected > Significant improvement after redemption and buy back of hybrids in -€0.4 bn Adj. net financial result 2017 and impact from settlement of
Slide 14: Appendix
Appendix RWE AG | Q1 2018 Conference Call | 15 May 2018 Page 14
Slide 15: Reconciliation to Q1 2018 adjusted net income
Reconciliation to Q1 2018 adjusted net income (€ million) RWE stand-alone RWE Group Reported Adjustments Adjusted Reported Adjustments Adjusted Adjusted EBITDA 299 - 299 1,891 - 1,891 Depreciation -128 - -128 -475 - -475 Adjusted EBIT 171 - 171 1,416 - 1,416 Non-operating result 84 -84 - 198 -198 -
Slide 16: Income statement Q1 2018
Income statement Q1 2018 (€ million) RWE stand-alone RWE Group Revenue (including natural gas tax/electricity tax) 4,951 12,409 Natural gas tax/electricity tax -35 -794 Revenue 4,916 11,615 Other operating result -104 -292 Cost of materials -4,031 -8,169 Staff costs -434 -1,190 Depreciation, amortis
Slide 17: Balance sheet as at 31 March 2018
Balance sheet as at 31 March 2018 (€ million) RWE stand-alone RWE Group Assets Intangible assets 1,035 12,456 Property, plant and equipment 6,596 25,055 Investments accounted for using the equity method 634 2,856 Other financial assets1 16,772 1,223 Inventories 893 1,309 Financial receivables 3,247
Slide 18: Net debt as at 31 March 2018
Net debt as at 31 March 2018 (€ million) RWE stand-alone RWE Group Cash and cash equivalents 2,836 3,889 Marketable securities 3,207 5,416 Other financial assets 3,223 2,063 t/o financial receivables against innogy 1,665 - Financial assets 9,266 11,368 Bonds, other notes payable, bank debt, commerci
Slide 19: RWE Group net debt increases mainly due to change in pension provisions
RWE Group net debt increases mainly due to change in pension provisions Development of net debt (RWE Group) (€ billion) 20.2 -0.4 +0.3 +0.1 +0.5 -0.0 +0.2 20.9 Net debt Cash flows Capex on Dividends Change in Change in Others Net debt 31 Dec 2017 from opera- property, plant incl. provisions hybrid c
Slide 20: 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 80 45 NL 70 UK 35 Germany 60 25 50 15 40 Jan'16 Jan'17 Jan'18 Jan'16 Jan'17 Jan'18 Coal prices – API2 Cal-ahead Gas prices – TTF Cal-ahead Carbon prices - EU ET
Slide 21: Clean Dark and Spark Spreads – 2016 – 2019 forwards for Germany, UK and NL
Clean Dark (CDS) and Spark Spreads (CSS) – 2016 – 2019 forwards for Germany, UK and NL1 Germany UK2 Netherlands Cal16 Cal17 Cal18 Cal19 Cal16 Cal17 Cal18 Cal19 Cal16 Cal17 Cal18 Cal19 €/MWh €/MWh 15 15 Ø11.21 Ø10.52 10 10 Ø7.13 Ø7.02 Ø5.31 Ø5.80 Ø5.59 Ø5.24 Ø4.28 Ø5.35 Ø3.63 5 5 Ø4.16 Ø4.83 Ø3.10 Ø1
Slide 22: 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 5179-3116 Investor and analyst conferences Tel. +49 201 5179-
Slide 23: Powering. Reliable. Future.
Powering. Reliable. Future. RWE