Orsted · OMXCOP:ORSTED
Orsted — DONG Energy — FY2009 Earnings Presentation
22 slides from Orsted's earnings presentation, 2010
Slide 1: Full-year results 2009
Full-year results 2009 DONG energy
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation are based on the beliefs of our management as well as assumptions made by and information currently available to the management. Forward-looking statements (other than statements of historical fact) regarding our future results of operations, financ
Slide 3: Agenda
Agenda Highlights 2009 Financials Outlook Q&A 3
Slide 4: Highlights in 2009
Highlights in 2009 Key financials Key figures DKKbn Strong cash flow despite negative impact on 16 performance by the financial crisis 14 13.6 EBITDA down 35% to DKK 8.8bn, on par with 12 9.6 10.4 9.5 expectations at the beginning of the year 10 9.0 8.2 8.8 8.8 Cash flow from operations only r
Slide 5: Transforming DONG Energy to a low carbon future
Transforming DONG Energy to a low carbon future Strong move towards green energy production in 2009 Vision to provide reliable energy without CO2 Inauguration of wind parks Horns Rev 2 and Gunfleet Sands Final investment decision on Walney 1+2 and London Array DONG Energy's 15/85 to 85/15 target
Slide 6: Offshore wind development
Offshore wind development DONG Energy in offshore wind European offshore market shares – Excellence in development, installation and installed capacity operation of offshore wind farms 20% Offshore capacity MW Installed: 749 Industrialisation of offshore construction 33% Under construction: ~ 65
Slide 7: Securing future gas sourcing
Securing future gas sourcing Achievements in 2009 to secure future gas Oil & Gas production sourcing mboe Ramp-up of Ormen Lange and production start of Alve 25 Extended contract with Gazprom 20 15 Gas discovery in the Glenlivet license in the West of Up 29% Shetland area 10 vs. 2008 5 New e
Slide 8: Larger construction projects in DONG Energy
Larger construction projects in DONG Energy Larger projects with commercial production before end of 2010 Project Type of project DE's share MW(1) Capex/remaining capex(2) Start of project Horns Rev 2 91 offshore wind turbines in DK 100% 209MW DKK 3.8bn /DKK 0.1bn Dec 2009 Karnice and Karcino 30 ons
Slide 9: Agenda
Agenda Highlights 2009 Financials Outlook Q&A 9
Slide 10: Market price development
Market price development Negatively impacted by economic downturn Decline in power demand in the Nordic region GWh Decline in energy demand and energy prices 40,000 Decoupling of oil and gas prices 35,000 Power prices down one third, gas prices halved 2009 Positive green dark spread on the b
Slide 11: Selected Financial Figures
Selected Financial Figures DKK million 2009 2008 As expected, EBITDA was down significantly in Revenue 49,262 60,777 2009 compared to 2008, due to: EBITDA 8,840 13,622 Lower gas and electricity prices Profit after tax 1,138 4,815 Negative effects from timing differences in Assets 120,552 106,0
Slide 12: Exploration & Production
Exploration & Production Increased production and new discoveries Operational Text box, Arial figures 16 bold Gas production nearly doubled – primarily due to gas field Ormen Lange 2009 2008 Gas production 65% of total production (46% in 2008) Oil & gas production mboe 24.0 18.5 Oil production
Slide 13: Generation
Generation Low power prices and demand Operational figures 2009 2008 Historical drop in power demand led to lower thermal production Power production GWh 18,074 18,536 Significantly lower power prices - Thermal GWh 15,264 15,958 - Renewables GWh 2,810 2,578 Renewable production made up 16% of
Slide 14: Energy Markets
Energy Markets Lower gas prices and significant negative time lag effects Operational figures Gas sales fell 5% due to lower demand from industry 2009 2008 and wholesale customers and lower sales on gas hubs Gas sales GWh 102,436 108,394 Power sales up 2% Power sales GWh 10,723 10,482 Acquisit
Slide 15: Sales & Distribution
Sales & Distribution Stable earnings Operational figures Gas sales increased 6% compared to 2008 2009 2008 Power sales down 6% Gas sales GWh 21,756 20,550 Fibre optic network sold on November 17, 2009 Distribution of gas GWh 9,966 10,346 Collaboration with Better Place on electric cars in Po
Slide 16: Debt and liquidity overview
Debt and liquidity overview Gross interest-bearing debt incl. hybrid capital Liquidity and funding activity DKKbn DKK billion 2009 2008 45 Cash equivalents and securities 5.5 2.4 0.7 40 EUR 1.5bn RCF, due 2011 11.2 11.2 8.1 35 Other (fully undrawn) 30 0.1 Mortgage loans Other undrawn committed facil
Slide 17: Capital structure target and funding
Capital structure target and funding Capital structure target Changed capital structure ratio from 2010 Adjusted net interest-bearing debt(1) of around Focuses more directly on the cash flows that three times cash flows from operating activities are generated by operations and can be used to A
Slide 18: Capital expenditures and rating
Capital expenditures and rating Net investments Credit ratings DONG Energy's share of net investments Standard & Poor's Moody's (excluding minority shareholders) in 2009 Corporate A- Baa1 realised at DKK 19bn against expectations of Senior bonds A- Baa1 DKK 20bn Maintaining expectations of: Hybr
Slide 19: Agenda
Agenda Highlights 2009 Financials Outlook Q&A 19
Slide 20: Outlook for 2010 – Commodity prices
Outlook for 2010 – Commodity prices Oil exposure for 2010 is fully hedged at an average price of USD 80/bbl Natural gas exposure in 2010 is largely neutral 60% of expected thermal power generation in 2010 is hedged at prices corresponding to green dark spreads of around EUR 10/MWh (30% hedged
Slide 21: Outlook for 2010 – Earnings, investments & capital structure
Outlook for 2010 – Earnings, investments & capital structure New assets and Ormen Lange expected to contribute a further DKK 1.0bn in 2010 Due to higher energy prices, timing differences are expected to be neutral to positive compared to negative in 2009 resulting in: A somewhat better EBITDA
Slide 22: Q&A
Q&A FOR FURTHER INFORMATION PLEASE VISIT OUR WEBSITE dongenergy.com/EN/Investor/ 22