Slide 1: FY 2020 Results
FY 2020 Results 16 March 2021 Rolf Martin Schmitz, CEO Markus Krebber, CFO Michael Müller, Board Member Thomas Denny, 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: 2020 – continued transformation and outperformance of earnings expectation
2020 – continued transformation and outperformance of earnings expectation • Transaction with E.ON implemented according to plan, acquisition of Nordex development pipeline realised, successful capital increase for further growth in renewables • Earnings exceeded outlook: Core adj. EBITDA of €2.7bn,
Slide 4: Our energy for a sustainable life – continuous focus on ESG
Our energy for a sustainable life – continuous focus on ESG • Hard coal: • Agreement with unions on socially acceptable coal exit for employees reached • Ibbenbüren and Westfalen hard coal plants successful in closing auction; moved into grid security reserve until final shut down in • High quality
Slide 5: Core adj. EBITDA above outlook on the back of a very good operational performance
Core adj. EBITDA above outlook on the back of a very good operational performance Core adj. EBITDA FY 2020 vs. FY 2019 pro forma, € million Outlook 2020 0% €2.15 – 2.45bn • Offshore Wind earnings closed at high level driven 2,676 2,676 by excellent wind conditions in Q1 Supply & Trading 539 731 • Ea
Slide 6: Renewable energy growth underpinned by growing development pipeline
Renewable energy growth underpinned by growing development pipeline Development pipeline per technology and region, GW pro rata Offshore Onshore/Solar ~34 GW Europe/APAC Delta Nordsee 1&2 0.5 GW Nordsee Two&Three 0.1 GW UKR4 lease projects 3.0 GW 10.2 0.9 0.1 Sofia 1.4 GW ~8.0 Rampion 2 0.6 GW 7.0 A
Slide 7: On track to meet 2022 growth target with more than 3GW under construction
On track to meet 2022 growth target with more than 3GW under construction Capacity development Wind/Solar, as of 31 Dec 2020 GW pro rata • Addition: Rampion 80MW • Farm-down: Onshore Texas >13.0 1.3 0.6 1.1 8.8 9.4 1.8 0.7 0.8 Offshore 1.3 Onshore 0.1 Onshore 0.5 Solar 0.2 Solar 0.05 Battery 0.1 Bat
Slide 8: Decisive year for offshore in 2021: all systems go for construction, development and preparation
Decisive year for offshore in 2021: all systems go for construction, development and preparation for new projects Under con- • At Triton Knoll (UK) first turbines safely & successfully installed and first struction/ power generated, exp. COD beginning of 2022 Close to • Pre-construction work at Kask
Slide 9: In 2021 more than 20 onshore, solar and storage projects will contribute ~2 GW
In 2021 more than 20 onshore, solar and storage projects around the world will contribute ~2 GW to RWE’s growth Total growth projects Total growth projects Total growth projects ~1 GW ~0.5 GW 249 MW Cassadaga Hickory Park Hickory Park Jüchen Dolice Zukowice Nowy Staw 3 Alcamo II Les Pierrots Limonda
Slide 10: Our engagement in hydrogen continues to take shape
Our engagement in hydrogen continues to take shape and we believe in the central role of H2 in the energy transition Together with partners, we are active in >30 projects and along the entire renewables and H2 value chain AquaVentus Heligoland • Dedicated Board member for South Wales Industrial Clus
Slide 11: Financials
Financials 16 Mar 2021 FY 2020 Results
Slide 12: Offshore Wind: Earnings up thanks to excellent wind conditions
Core Offshore Wind: Earnings up thanks to excellent wind conditions Key financials FY - Offshore Wind FY 2020 vs. FY 2019 pro forma ✓ Outlook 2020 €900 – 1,100m pro forma € million FY 2020 FY 2019 change Stronger performance on the back of above average wind speeds in Q1 2020 Adj. EBITDA 1,069 961 +
Slide 13: Onshore Wind/Solar: Earnings impacted by Covid 19-related project delays and poor wind in Q4
Core Onshore Wind/Solar: Earnings impacted by Covid 19-related project delays and poor wind in Q4 Key financials FY - Onshore Wind/Solar FY 2020 vs. FY 2019 pro forma €500 – 600m Outlook 2020 pro forma € million FY 2020 FY 2019 change Increased capacity in Onshore Wind/Solar, Europe and US, howeve
Slide 14: Hydro/Biomass/Gas: Strong day-to-day optimisation in Q4 pushed earnings
Core Hydro/Biomass/Gas: Strong day-to-day optimisation in Q4 pushed earnings Key financials FY - Hydro/Biomass/Gas FY 2020 vs. FY 2019 pro forma €550 – 650m ✓ Outlook 2020 pro forma € million FY 2020 FY 2019 change Lower income from GB capacity payments, in particular due to one-off payment for 2018
Slide 15: Supply & Trading: Positive year-end spurt and overall excellent full year performance
Core Supply & Trading: Positive year-end spurt and overall excellent full year performance Outlook 2020 Key financials FY - Supply & Trading FY 2020 vs. FY 2019 pro forma €150 – 350m pro forma € million FY 2020 FY 2019 change Very strong trading performance as well as good result for gas & LNG busin
Slide 16: Coal/Nuclear: Solid earnings on the strength of higher realised hedged generation margins
Coal/Nuclear: Solid earnings on the strength of higher realised hedged generation margins Key financials FY - Coal/Nuclear FY 2020 vs. FY 2019 pro forma Outlook 2020 €500 – 600m ✓ pro forma € million FY 2020 FY 2019 change Higher realised hedged generation margins Adj. EBITDA 559 340 +219 Production
Slide 17: Adj. net income given a lift by very good operational performance
Adj. net income given a lift by very good operational performance Adj. net income, € million FY 2020 Adj. EBITDA 3,235 • Adj. EBITDA excludes non-operating result FY 2020 • Adj. financial result includes E.ON dividend of €182 Adj. depreciation -1,464 million as well as losses in financial asset port
Slide 18: Adj. operating cash flow increased to ~€2.7bn in light of the very good adj. EBITDA
Adj. operating cash flow increased to ~€2.7bn in light of the very good adj. EBITDA Reconciliation to adj. operating cash flow, € million FY 2020 3,235 • Changes in provisions driven by legacy and -375 -114 2,661 restructuring provisions among others -25 -60 • Negative effects in ‘Changes in operati
Slide 19: Net debt decreased on the back of a high operating cash flow and the capital increase
Net debt decreased on the back of a high operating cash flow and the capital increase Development of net debt continuing operations, € billion FY 2020 6.9 0.5 -2.0 -2.7 2.4 4.4 -1.4 0.6 RWE Adj. operating Net cash Dividends Capital Other Changes in RWE continuing cash flow investments increase chang
Slide 20: Outlook for fiscal 2021
Outlook for fiscal 2021 Outlook FY2021, € million Core adj. EBITDA 1,800 – 2,200 Dividend • Management target of €0.9 per share for Adj. EBITDA RWE Group 2,650 – 3,050 FY2021 €/share Adj. Depreciation ~-1,500 €0.85 1 €0.90 2 €0.80 Adj. EBIT 1,150 – 1,550 Adj. Financial result ~-150 Adj. Tax 15% 2019
Slide 21: Guidance from CMD confirmed
Guidance from CMD confirmed Outlook FY2022, € million Relevant aspects on mid-term earnings outlook Offshore Wind Core adj. EBITDA 2,550 – 2,850 ✓ • Support expiry/Transition phase started at German Adj. EBITDA RWE Group 3,100 – 3,400 ✓ windfarms Nordsee Ost and Amrumbank in 2022 resp. 2023 - from h
Slide 22: Appendix
Appendix 16 Mar 2021 FY 2020 Results
Slide 23: Reconciliation to adj. net income
Reconciliation to adj. net income FY 2020 (€ million) Reported Adjustments Adjusted Adjusted EBITDA 3,235 - 3,235 Depreciation -1,464 - -1,464 Adjusted EBIT 1,771 - 1,771 Non-operating result -121 121 - Financial result -454 139 -315 Income from continuing 1,196 260 1,456 operations before taxes Tax
Slide 24: Economic net debt
Economic net debt Net debt 1 (€ million) 31 Dec 2020 31 Dec 2019 +/- New net debt definition Cash and cash equivalents 4,774 3,192 1,582 • Net debt no longer Marketable securities 4,517 3,523 994 contains mining provisions, which Other financial assets 2,507 2,383 124 essentially cover our Financial
Slide 25: Overview of restated figures FY2020
Overview of restated figures FY2020 Reported Restated (€ million) FY2020 FY2020 • As of January 2021, we changed the accounting treatment for tax benefits we receive for wind and Offshore Wind 1,069 1,069 solar projects as part of the US incentive scheme Onshore Wind/Solar 472 5241 • We now recognis
Slide 26: Overview Outlook divisions
Overview Outlook divisions Outlook FY2021, € million Outlook FY2022, € million Adj. EBITDA Adj. EBITDA Upper half of range Offshore Wind 1,050 – 1,250 Offshore Wind 1,150 – 1,350 Lower half of range Onshore Wind/Solar 50 – 250 Onshore Wind/Solar 650 – 750 Hydro/Biomass/Gas 500 – 600 Hydro/Biomass/Ga
Slide 27: Key sensitivities to our planning assumptions for FY2021
Key sensitivities to our planning assumptions for FY2021 Driver Segment Type Sensitivity Group impact1 Wind levels Offshore Wind P&L +/- 10% production +/- €160 million Onshore Wind/Solar P&L +/- 10% production +/- €100 million Power prices Offshore Wind and Onshore Wind/Solar P&L +/- 10% +/- €70 mi
Slide 28: Your contacts in Investor Relations
Your contacts in Investor Relations Important Links Financial Calendar • Annual and interim reports & statements • 28 April 2021 http://www.rwe.com/ir/reports ADR programme available Virtual Annual General Meeting • Investor and analyst conferences • 03 May 2021 http://www.rwe.com/ir/investor-and-an