Uniper Se · XETR:UN0
Uniper — H1 2018 Earnings Presentation
32 slides from Uniper's earnings presentation, Aug 7, 2018
Slide 1: H1 2018 Interim Results
H1 2018 Interim Results Christopher Delbrück – CFO 07 August 2018
Slide 2: Agenda
Agenda 1. H1 2018 – Highlights 2. H1 2018 – Financial results 3. Appendix
Slide 3: Essentials of H1 2018
Essentials of H1 2018 Fortum new major shareholder Shareholder Markus Rauramo to join the Supervisory Board Robust tailwind from commodity markets Market & Uniper actively accompanying coal exit plans in Europe Strategy Strategy implementation taking form Solid H1 Adjusted EBIT at €601m – expected d
Slide 4: Commodity markets – Manifestation of positive trend
Commodity markets – Manifestation of positive trend CO2 prices and coal forwards Baseload forwards Uniper Nordic outright hedges EUR/t USD/MT EUR/MWh EUR/MWh 20 100 45 45 40 40 Achieved price Hedge ratio 16 80 >70% 35 35 12 60 30 30 >40% 8 40 25 25 4 20 20 20 CO2 Coal (rhs) Germany Nordic <5% 0 0 15
Slide 5: Uniper actively accompanying coal exit plans in Europe
Uniper actively accompanying coal exit plans in Europe Germany France Netherlands 578 TWh 527 TWh 112 TWh Uniper Uniper Uniper 21 TWh 8 TWh 10 TWh Generation mix: Nuclear Lignite Hard coal Gas Renewables Commission just established Coal exit immediately ahead Coal exit by end of 2029 One target is
Slide 6: Update from the business
Update from the business Large asset project – Growth opportunity – Growth opportunity – Nord Stream 2 Industrial Solutions Russia modernization Auction years Commisioning years 2018 11 GW 2022-2024 2019 4 GW 2025 2020 4 GW 2026 … 2025 4 GW 2031 Project progressing New flagship project signed Unipro
Slide 7: Agenda
Agenda 1. H1 2018 – Highlights 2. H1 2018 – Financial results 3. Appendix
Slide 8: Key financials H1 2018
Key financials H1 2018 Adj. EBIT(DA) Operating cash flow, adj. FFO Economic net debt €bn €bn €bn 1.3 0.9 1.4 3.3 0.9 2.4 0.6 0.7 0.6 0.5 H1 2017 H1 2018 OCF OCF Adj. FFO Adj. FFO YE 2017 H1 2018 EBIT EBITDA H1 2017 H1 2018 H1 2017 H1 2018 Adj. EBIT(DA) down Op. cash flow significantly down Net debt
Slide 9: Adjusted EBIT – H1 2018 earnings reduction largely due to structural effects
Adjusted EBIT – H1 2018 earnings reduction largely due to structural effects Reconciliation Adj. EBIT H1 2017 to Adj. EBIT H1 2018 €bn Adj. EBIT H1 2017 0.9 Structural effects (YR, lapse of Berezovskaya insurance payments, FX) Regulation (Nordic tax, capacity markets) Price outright Gas optimization
Slide 10: Adj. EBIT(DA) to OCF – lower cash conversion
Adj. EBIT(DA) to OCF – lower cash conversion due to working capital smoothing Reconciliation Adj. EBIT H1 2018 to operating cash flow H1 2018 €m 116 339 23 940 -548 -57 -3 -6 601 448 465 Adj. EBIT Depreci- Adj. EBITDA Non-cash Provision Changes in Payments OCFbIT Interest Tax OCF H1 2018 ation and H
Slide 11: Economic net debt increased due to IFRS 16 and margining requirements
Economic net debt increased due to IFRS 16 and margining requirements Economic net debt €bn 3.3 0.3 0.4 0.3 0.9 2.4 0.3 -0.1 0.2 1.0 0.8 -0.5 0.7 1.6 0.8 Economic net Divestments OCF Capex Dividend IFRS 16 Margining Other Economic net debt YE 2017 payment debt H1 2018 AROs1 Pension2 Net financial po
Slide 12: 2018 Outlook reiterated – Further dividend growth ahead
2018 Outlook reiterated – Further dividend growth ahead Adj. EBIT Dividend Key highlights TBU €bn €bn European Generation 1.1 1.1 0.31 0.27 Increasing contribution from UK and French Range capacity payments 0.8 Final reduction of Swedish nuclear capacity tax and further reduction of hydro proper
Slide 13: Agenda
Agenda 1. H1 2018 – Highlights 2. H1 2018 – Financial results 3. Appendix
Slide 14: Outright power hedging in Germany and Nordic
Outright power hedging in Germany and Nordic Outright position – baseload power price >80% >75% >15% €/MWh >85% >70% >40% 35 30 25 20 Status: June 2018 15 2018 2019 2020 Achieved price Germany Hedge ratio Germany Achieved price Nordic Hedge ratio Nordic Uniper SE, Presentation H1 2018, 07 Aug 2018 1
Slide 15: Group EBIT(DA) – Modest earnings development in H1 2018
Group EBIT(DA) – Modest earnings development in H1 2018 Adj. EBIT development by segment in H1 2018 Highlights €m European Generation 88 (-) Lower outright prices and spreads (-) Closure of Maasvlakte 1 + 2 and -76 Oskarshamn 1 930 -335 -6 (+) Swedish tax relief on hydro and 601 nuclear (+)
Slide 16: European Generation – Positive regulation and volume effects
European Generation – Positive regulation and volume effects Adj. EBIT development by sub-segment in H1 2018 Main effects €m Hydro (+) Positive volume effect 24 8 (+) Reduced hydro property tax 87 -30 (+) net provision one-off 372 (-) Lower achieved prices 284 Nuclear H1 2017 Hydro Nuclear F
Slide 17: Global Commodities – Lower gas optimization result
Global Commodities – Lower gas optimization result Adj. EBIT development by sub-segment in H1 2018 Main effects TBU €m Gas (-) Settlement of Yuzhno-Russkoye -33 34 12 hedging result in Gas (+) Improvement of Gas optimization 262 result in isolated Q2 -89 186 (-) Lapse of renegotiation result w
Slide 18: International Power – Lapse of insurance payment
International Power – Lapse of insurance payment Adj. EBIT development by sub-segment in H1 2018 Main effects TBU €m Russia (-) Lapse of Berezovskaya insurance payment (+) Increase of capacity payments 477 3 thanks to effects of CSA uplift (-) Decreased electricity revenues -339 142 due to low
Slide 19: Uniper Group – Adjusted EBIT(DA) by segment
Uniper Group – Adjusted EBIT(DA) by segment Adj. EBITDA €m H1 2018 H1 2017 % European Generation 604 507 19.1 Global Commodities 240 310 -22.5 International Power 189 526 -64.0 Administration / Consolidation -93 -90 -3.3 Total 940 1,253 -24.9 Adj. EBIT €m H1 2018 H1 2017 % European Generation 372 28
Slide 20: Uniper Group – Adjusted EBIT(DA) by sub-segment
Uniper Group – Adjusted EBIT(DA) by sub-segment Adj. EBITDA and EBIT H1 2018 H1 2017 H1 2018 H1 2017 €m Adj. EBITDA Adj. EBITDA Adj. EBIT Adj. EBIT European Generation Hydro 273 169 228 141 Nuclear 99 77 69 45 Fossil 251 288 96 125 Other/ Consol. -19 -27 -21 -28 Subtotal 604 507 372 284 Global Commo
Slide 21: Uniper Group – Key P&L items at a glance
Uniper Group – Key P&L items at a glance Key P&L items €m H1 2018 H1 2017 Sales 35,968 37,305 Adjusted EBITDA 940 1,253 Economic depreciation and amortization / reversals -339 -323 Adjusted EBIT 601 930 Non-operating adjustments 1.344 -381 EBIT -743 1.311 Net interest income / expense1 -25 -9 Other
Slide 22: Uniper Group – Adjusted EBITDA to net income
1,362 Uniper Group – Adjusted EBITDA to net income Reconciliation Adj. EBITDA H1 2018 to net income H1 2018 €m 940 - 339 601 - 165 -546 371 -1,057 -270 -26 Adj. D&A Adj. Economic MTM Net Other Taxes on Net EBITDA EBIT interest, taxes, Derivatives impairments non- Income 1 minorities operating earnin
Slide 23: Uniper Group – Economic interest expense (net)
Uniper Group – Economic interest expense (net) Economic interest expense of the Uniper Group €m H1 2018 H1 2017 Interest from financial assets / liabilities 5 -9 Interest cost from provisions for pensions and similar provisions -9 -10 Accretion of provisions for retirement and obligation and other p
Slide 24: Uniper Group – Non-operating adjustments
Uniper Group – Non-operating adjustments Non-operating adjustments €m H1 2018 H1 2017 Net book gains / losses 31 - Fair value measurement of derivative financial instruments 1.057 -446 Restructuring / cost management expenses -55 13 Non-operating impairment charges / reversals 270 34 Miscellaneous o
Slide 25: Uniper Group – Cash effective investments
Uniper Group – Cash effective investments Investments by segment €m H1 2018 H1 2017 % European Generation 136 188 -27,6 Global Commodities 11 13 -15,3 International Power 83 66 25,7 Administration / Consolidation 14 27 -48,1 Total 244 294 -17,0 Investment split – maintenance and growth €m H1 2018 H1
Slide 26: Uniper Group – Net financial position
Uniper Group – Net financial position Net financial position of the Uniper Group €m 30 Jun 2018 31 Dec 2017 Liquid funds 862 1,027 Non-current securities 92 104 Financial liabilities -2,556 -1,923 Net financial position -1,602 -792 Provisions for pensions and similar obligations -753 -676 Asset reti
Slide 27: Uniper Group – Consolidated balance sheet (1/2)
Uniper Group – Consolidated balance sheet (1/2) Balance sheet of the Uniper Group – assets €m 30 Jun 2018 31 Dec 2017 Goodwill 1,861 1,890 Intangible assets 803 819 Property, plant and equipment 11,092 11,496 Companies accounted for under the equity method 448 448 Other financial assets 760 814 Equi
Slide 28: 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 2018 31 Dec 2017 Capital stock 622 622 Additional paid-in capital 10,825 10,825 Retained earnings 2,925 3,399 Accumulated other comprehensive income -3,346 -2,699 Equity attributable
Slide 29: Uniper Group – Consolidated statement of cash flows
Uniper Group – Consolidated statement of cash flows Statement of cash flows of the Uniper Group €m H1 2018 H1 2017 Net income / loss -522 1,057 Depreciation, amortization and impairment of intangibles / property, plant, equipment 616 369 Changes in provisions -433 -323 Changes in deferred taxes -232
Slide 30: Contact your Investor Relations team
Uniper – Contact your Investor Relations team Uniper SE Udo Giegerich Marc Koebernick Investor Relations Executive Vice President Head of Investor Relations (SVP) E.ON-Platz 1 Group Finance & Investor Relations +49 211 4579 4489 40479 Duesseldorf udo.giegerich@uniper.energy marc.koebernick@uniper.en
Slide 31: Financial calendar & further information
Financial calendar & further information Financial calendar Further information 13 November 2018 https://ir.uniper.energy Quarterly Statement January – September 2018 12 March 2019 Annual Report 2018 07 May 2019 Quarterly Statement January – March 2019 08 August 2019 Interim Report January – June 20
Slide 32: 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