Uniper Se · XETR:UN0
Uniper — H1 2016 Earnings Presentation
29 slides from Uniper's earnings presentation, Aug 22, 2016
Slide 1: 2016 First half results
Klaus Schäfer, CEO Christopher Delbrück, CFO 2016 First half results 22 August 2016
Slide 2: Agenda
Agenda I Klaus Schäfer, H1 highlights & CEO Equity story at a glance II Christopher Delbrück, Financial performance & CFO first half results 2
Slide 3: Uniper listing to go ahead in September
Uniper listing to go ahead in September Major Milestones Roadshow destinations Europe Capital Market Days in London Rating obtained Debt financing secured AGM approval Publishing of prospectus Roadshow destinations US Roadshow Listing and first trading 3
Slide 4: The Uniper share: Value play and base dividend with optionality
The Uniper share: Value play and base dividend with optionality Attractive assets across Europe/ Russia Portfolio with diversified earnings Run for cash and commitment to Performance cost excellence Gearing to commodity price recovery Potential and market transformation 4
Slide 5: Focused portfolio, attractive assets
Portfolio Focused portfolio, attractive assets Performance Potential High share of non–wholesale earnings2 • One of the largest European generators with 31 GW of European own, mostly dispatchable generation capacity Generation • Diversified base across technologies and main NWE markets Significant e
Slide 6: Analysis phase nearing completion
Portfolio Analysis phase nearing completion Performance Potential Cash Group investments (€ Bn) Remaining growth projects to be largely finalized by 2018 Maintenance replacement capex to be reduced Working capital to be further optimized 2015 2018 Portfolio Disposal volume >€2bn Process to b
Slide 7: Significant reduction of direct and indirect costs
Portfolio Significant reduction of direct and Performance Potential indirect costs Target Voyager program kicked off Adapt the organization to its challenging business Voyager program launched in April environment Thorough initial analysis suggests considerable Mitigate loss of earnings due
Slide 8: Commodity market sentiment starting to improve
Portfolio Commodity market sentiment Performance Potential starting to improve Outright power1,2 Spreads1,2 35 50 Germany UK (EUR/MWh) (GBP/MWh) 30 Dark spread 40 Spark spread 10 10 25 0 6 30 20 Germany, EUR/MWh Nordpool, EUR/MWh -10 2 UK (BP/MWh, right axis) 15 20 -20 -2 Jan-15 Jul-15 Jan-16 Jul-16
Slide 9: Mid-term upsides become more tangible
Portfolio Mid-term upsides become Performance Potential more tangible Swedish Nuclear and Hydro Tax Growth projects Datteln IV Government announced to fully abolish the nuclear tax Jan 1st 2019 1,055 MW state-of-the-art hard coal- fired power plant Hydro property tax to be significantly Expe
Slide 10: Uniper's aspiration is to balance attractive cash returns and financial stability
Uniper’s aspiration is to balance attractive cash returns and financial stability Uniper approach Key components • Investments focused on maintenance Free Cash • Remaining growth projects to be Top-management incentivisation Flow funded by disposal proceeds • Rigorous cost and cash optimisation meas
Slide 11: Agenda
Agenda I Klaus Schäfer, Key highlights & CEO Equity story at a glance II Christopher Delbrück, Financial performance & CFO first half results 11
Slide 12: Operationally solid first half 2016
Operationally solid first half 2016 Highlights Adj. EBIT(DA) Operating Cashflow Adj. EBIT(DA) strongly up 1.5 Driven by provision release and gas and power optimization results… 1.0 2.3 …more than offsetting impact from lower power 2.0 prices and volumes in European Generation and 1,1 0,5 reduce
Slide 13: Significant negative effects in European generation and gas storage impact bottom line
Significant negative effects in European generation and gas storage impact bottom line Overview of effects (€bn) Background H1 2016: Total impairment / provisions for European Generation onerous contracts of €3.8bn Takes into account discussions in several European countries with respect to early
Slide 14: Global commodities drives positive H1 2016 group adj. EBIT(DA) performance
Global commodities drives positive H1 2016 group adj. EBIT(DA) performance Adj. EBITDA (€m) €m H1 2015 H1 2016 +/- % European Generation 515 406 -21 Global Commodities 420 1,165 >100 International Power 150 5 -97 Admin / Consolidation -85 -36 -58 Total 1,000 1,540 +54 Adj. EBIT (€m) €m H1 2015 H1 20
Slide 15: European Generation H1 2016 mainly impacted by lower power prices
European Generation H1 2016 mainly impacted by lower power prices Adj. EBIT(DA) H1 2016 (€m) Background Lower achieved power prices are the key driver of the lower hydro and nuclear results Adj. EBITDA and adj. EBIT Adj. EBITDA contribution for total segment by sub-segments Other1 Positive volum
Slide 16: Global Commodities benefits from significant gas earnings in H1 2016
Global Commodities benefits from significant gas earnings in H1 2016 Adj. EBIT(DA) H1 2016 (€m)1 Background Gazprom LTC agreement triggered release of provisions built up in prior years - portfolio Adj. EBITDA and adj. EBIT Adj. EBITDA contribution significantly de-risked for total segment by sub-
Slide 17: International Power H1 2016 impacted by Berezovskaya
International Power H1 2016 impacted by Berezovskaya Adj. EBIT(DA) H1 2016 (€m) Background Earnings decline in Russia exclusively due to reduction of the carrying amount of Adj. EBITDA and adj. EBIT Adj. EBITDA contribution Berezovskaya 3 caused by for total segment by sub-segments1 accident in Fe
Slide 18: Economic net debt in H1 2016 benefits from strong OCF and disposal of Nord Stream I
Economic net debt in H1 2016 benefits from strong OCF and disposal of Nord Stream I Economic net debt per 30 June 2016 (€bn) 6.7 1.0 1.0 AROs1 Pension 0.3 Net financial position2 0.8 4.7 2.0 0.4 0.5 3.6 0.3 0.9 4.9 1.2 1.5 Economic Nord Capital OCF Capex Pension Other effects3 Economic Pro-forma net
Slide 19: H1 2016 Uniper Financing
H1 2016 Uniper Financing Investment grade rating obtained Standard & Poor's rated Uniper at BBB- / stable outlook From the start we are committed to achieving a comfortable investment grade rating Measures have been initiated to further support that overarching target Bank financing secure
Slide 20: Appendix
Appendix per
Slide 21: Hedging outright power – Germany and Nordic
Hedging outright power – Germany and Nordic Outright position Key observations Baseload power price (€/MWh) >80% >80% >80% Outright power exposure >80% >90% >60% hedged at prices above 45 forward for 2016 and 2017 35 Outright power for 2018 hedged at recent forward prices 25 For 2018 hedge rat
Slide 22: Berezovskaya 3 update
Berezovskaya 3 update Current estimation Damage of equipment and lost margin Latest examination: 50% of boiler damaged Business due to unscheduled repairs Reconstruction costs at least RUB 25bn impact Level of boiler damage impacts amount Recommissioning not before mid 2018 of repair works
Slide 23: Detailed breakdown of CAPEX H1 2016
Detailed breakdown of CAPEX H1 2016 Investments (€m) H1 2016 H1 2015 +/- % European Generation 177 275 -35 Global Commodities 66 58 +14 International Power 44 85 -48 Admin/Consolidation 5 - Total Uniper Group 292 418 -30 thereof growth 144 155 -7 thereof maintenance/ replacement 148 263 -44 Source:
Slide 24: Uniper Group: Key P&L items at a glance
Uniper Group: Key P&L items at a glance Key P&L items €m H1 2016 H1 2015 Sales 33,327 44,911 Adjusted EBITDA 1,540 1,000 Economic depreciation and amortization / reversals1 -405 -455 Adjusted EBIT 1,135 545 Non-operating adjustments -4,595 -376 EBIT -3,460 169 Net interest income / expense -375 -48
Slide 25: Uniper Group: Details on non-operating adjustments
Uniper Group: Details on non-operating adjustments Non-operating adjustments €m H1 2016 H1 2015 Net book gains / losses 522 - Fair value measurement of derivative financial instruments -1,034 -118 Restructuring / cost management expenses 1 -223 -42 Non-operating impairment charges (+)/ reversals (-)
Slide 26: Uniper Group: Consolidated balance sheet (1/2)
Uniper Group: Consolidated balance sheet (1/2) Balance Sheet of the Uniper Group - Assets €m 30 Jun 2016 31 Dec 2015 Goodwill 2,628 2,555 Intangible assets 1,966 2,159 Property, plant and equipment 11,274 14,297 Companies accounted for under the equity method 840 1,136 Other financial assets 530 558
Slide 27: Uniper Group: Consolidated balance sheet (2/2)
Uniper Group: Consolidated balance sheet (2/2) Balance Sheet of the Uniper Group – Equity and Liabilities €m 30 Jun 2016 31 Dec 2015 Subscribed Capital 290 - Capital Reserves 4,188 - Equity attributable to the shareholder of Uniper SE/ Retained earnings 185 18,684 Accumulated other comprehensive inc
Slide 28: Uniper Group: Net debt
Uniper Group: Net debt Net financial position and debt factor €m 30 Jun 2016 31 Dec 2015 Liquid funds 536 360 Non-current securities 149 189 Financial receivables from consolidated group companies (< 3 months) 4 6,971 Financial receivables from consolidated group companies (> 3 months) 170 397 Finan
Slide 29: Uniper Investor Relations
Uniper Investor Relations Contact your IR Team Dr. Constantin Birnstiel Marc Koebernick Executive Vice President Head of Investor Relations (SVP) Communications and +49 211 4579 4489 Investor Relations marc.koebernick@uniper.energy Dr. Carlo Beck Oliver Roeder Manager Investor Relations Manager Inve