Slide 1: 2017 Full Year Results and Outlook 2018
2017 Full Year Results and Outlook 2018 13 March 2018
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: Development of adjusted EBITDA dominated by recovery of earnings at Supply & Trading
Development of adjusted EBITDA dominated by recovery of earnings at Supply & Trading Group RWE stand-alone (€ million) > Lignite & Nuclear: 5,403 FY 2016 1,928 Declining generation margins Lower non-recurring items compared to 2016 -408 Lignite & Nuclear -408 > European Power: Strong contribution fr
Slide 4: Lignite & Nuclear – Driven by lower realised generation margins
Lignite & Nuclear – Driven by lower realised generation margins Key financials FY 2017 versus FY 2016: FY FY Lower realised generation margins € million 2017 2016 change Lower income at Mátra and classification as asset held for sale as of Q2 2017; i.e. earnings contribution from Adj. EBITDA 671 1,0
Slide 5: European Power – Higher earnings mainly due to favourable CAO result and higher non-recurring items
European Power – Higher earnings mainly due to favourable CAO result and higher non-recurring items Key financials FY 2017 versus FY 2016: FY FY Significantly higher income from € million 2017 2016 change commercial asset optimisation (CAO) Higher positive non-recurring items UK 205 270 -65 Operatin
Slide 6: Hedging – Improved average hedge prices due to favourable development of spreads
Hedging – Improved average hedge prices due to favourable development of spreads Expected positions and hedge status as of 31 December 2017 Outright ~31 ~28 ~28 ~31 (Lignite & 98 TWh 85 – 90 TWh 80 – 85 TWh 80 – 85 TWh Nuclear) >90% >90% >70% 2017 2018E 2019E 2020E Change to reported average
Slide 7: Significant improvement of fuel spreads in 2017
Significant improvement of fuel spreads in 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 Cal16 Cal17 Cal18 Cal19 Cal20 1 Fuel spread defined as: Power price – (pass-thr
Slide 8: Supply & Trading – Strong earnings contribution after losses in previous year
Supply & Trading – Strong earnings contribution after losses in previous year Key financials FY 2017 versus FY 2016: FY FY Normalised trading result after losses in 2016 € million 2017 2016 change Strong earnings contribution of Gas & LNG Absence of income from disposal of Lynemouth power Adj. EBITD
Slide 9: Adjusted net income FY 2017 reaches €973 million
Adjusted net income FY 2017 reaches €973 million Group RWE stand-alone (€ million) > RWE stand-alone adj. EBITDA includes Adj. EBITDA 2,066 operating income from Lignite & Nuclear, 5,756 European Power and Supply & Trading and dividend from innogy -2,110 Adj. depreciation -592 > All effects related
Slide 10: High FY 2017 distributable cash flow despite negative effects in working capital
High FY 2017 distributable cash flow despite negative effects in working capital 2016 RWE stand-alone 2017 (€ million) > innogy dividend of €683 million fully reflected in Adj. EBITDA 1,928 Adj. EBITDA 2,066 > Changes in provisions refer mainly to legacy Change in provisions & provisions, nuclear pr
Slide 11: Strong decline of net debt due to positive DiCF, nuclear fuel tax refund and reduction of pension provisions
Strong decline of net debt due to positive DiCF, nuclear fuel tax refund and reduction of pension provisions Development of net debt (RWE stand-alone) (€ million) 6,858 -533 5 -256 -2,322 -243 1,001 4,510 Net debt Distributable Dividend Financial Other Change in Change in Net debt 31 Dec 2016 cash f
Slide 12: RWE stand-alone – Outlook for 2018
RWE stand-alone – Outlook for 2018 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 from call and buy back of hybrids in 2017 and -€0.4 bn Adj. net financial result settlement of nuclear energy fund in July
Slide 13: Clear perspective of growing dividend
Clear perspective of growing dividend Elements of dividend policy for next two years €1.501 > Dividends driven by distributable cash flow of €1.00 RWE stand-alone > Target to fully pay out entire distributable cash flow over planning horizon €0.702 Smooth short-term volatility of trading business
Slide 14: Appendix
Appendix RWE AG | 2017 Full Year Results | 13 March 2018 Page 14
Slide 15: Reconciliation to FY 2017 adjusted net income
Reconciliation to FY 2017 adjusted net income (€ million) RWE stand-alone RWE Group Reported Adjustments Adjusted Reported Adjustments Adjusted Adjusted EBITDA 2,066 - 2,066 5,756 - 5,756 Depreciation -592 - -592 -2,110 - -2,110 Adjusted EBIT 1,474 - 1,474 3,646 - 3,646 Non-operating result 940 -940
Slide 16: Income statement FY 2017
Income statement FY 2017 (€ million) RWE stand-alone RWE Group Revenue (including natural gas tax/electricity tax) 15,653 44,585 Natural gas tax/electricity tax -131 -2,151 Revenue 15,522 42,434 Other operating result 1,399 -78 Cost of materials -12,686 -31,326 Staff costs -1,699 -4,704 Depreciation
Slide 17: Balance sheet as at 31 December 2017
Balance sheet as at 31 December 2017 (€ million) RWE stand-alone RWE Group Assets Intangible assets 1,036 12,383 Property, plant and equipment 6,614 24,904 Investment property 28 43 Investments accounted for using the equity method 645 2,846 Other financial assets1 14,279 1,109 Inventories 1,544 1,9
Slide 18: Net debt as at 31 December 2017
Net debt as at 31 December 2017 (€ million) RWE stand-alone RWE Group Cash and cash equivalents 2,863 3,933 Marketable securities 2,768 5,131 Other financial assets 3,038 1,863 t/o financial receivables against innogy 1,662 - Financial assets 8,669 10,927 Bonds, other notes payable, bank debt, comme
Slide 19: RWE Group net debt improved due to change in provisions and refund of nuclear fuel tax
RWE Group net debt improved due to change in provisions and refund of nuclear fuel tax Development of net debt (RWE Group) (€ billion) 22.7 +1.8 +2.1 +0.6 -7.0 -1.1 1.0 0.1 20.2 Net debt Cash flows Capex on Dividends Change in Other Change in Others Net debt 31 Dec 2016 from opera- property, plant i
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 35 60 UK Germany 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 Ø5.88 Ø5.80 Ø5.59 Ø5.35 Ø5.24 5 5 Ø4.16 Ø4.83 Ø3.10 Ø3.92 Ø3.43 Ø2
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