Rwe Ag · XETR:RWE
Rwe — Q1 2013 Earnings Presentation
28 slides from Rwe's earnings presentation, May 15, 2013
Slide 1: Investor and Analyst Q1 2013 Conference Call
Investor and Analyst Q1 2013 Conference Call Essen, 15 May 2013 Bernhard Günther Stephan Lowis Chief Financial Officer Vice President Investor Relations
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains certain forward-looking statements within the meaning of the US federal securities laws. Especially all of the following statements: > Projections of revenues, income, earnings per share, capital expenditures, dividends, capital structure or other
Slide 3: Main messages for Q1 2013
Main messages for Q1 2013 Financial performance in line with our expectations: EBITDA -3%, operating result -4%, recurrent net income +1% Strategic decision to evaluate potential exit options for our Upstream Gas & Oil activities. Sales process initiated Disposal of assets with a total value of €0.4
Slide 4: Development of operating result by division
Development of operating result … … by division (-€102 million; -4%) Earnings in Conventional Power Generation Division under pressure € million - full auctioning of CO2 certificates Q1 2012 2,436 - declining generation margins Conventional -405 - closure of old 150 MW lignite blocks in Power Genera
Slide 5: Reconciliation of (recurrent) net income
Reconciliation of (recurrent) net income € million Q1 2013 +/- % Depreciation slightly above last year’s level after commissioning of new assets EBITDA 3,042 -2.7% Non-operating result improved Depreciation -708 -2.8% mainly due to the absence of restructuring charges Operating result 2,334 -4.2% No
Slide 6: Cash flow statement
Cash flow statement January – March Change € million 2013 2012 (absolute) Funds from operations (FFO) 2,174 2,277 -103 Change in working capital -2,116 -1,979 -137 of which variation margins -191 42 -233 Cash flows from operating activities 58 298 -240 Capex on fixed assets -757 -987 230 Free cash f
Slide 7: Outlook for 2013
Outlook for 2013 € million 9,314 In the order of 9,000 EBITDA 6,416 In the order of 5,900 Operating result Recurrent 2,457 In the order of 2,400 net income 2012 2013e1 Dividend €2.00/share Pay out ratio of 50% – 60% of recurrent net income 1 The outlook is after assumed disposals. In 2013 we expect
Slide 8: Divisional outlook for the operating result
Divisional outlook for the operating result € million 20121 2013 forecast versus 20122 Conventional Power Generation 3,275 Significantly below last year’s level Supply/Distribution Networks Germany 1,578 In the order of last year’s level Supply Netherlands/Belgium 190 In the order of last year’s lev
Slide 9: Back-up Charts
Back-up Charts RWE AG | Q1 2013 Conference Call | 15 May 2013 9
Slide 10: Performance of the Conventional Power Generation Division
Performance of the Conventional Power Generation Division January – March: operating result: -35.2% (-€405 million) € million - Full auctioning of CO2 certificates (c. -€330 m) - Closure of 1.8 GW old 150 MW lignite blocks 1,150 - Lower realised electricity generation spreads, incl. coal tax in NL 7
Slide 11: RWE's forward hedging of conventional electricity production
RWE’s forward hedging of conventional electricity production (German, Dutch and UK portfolio, excl. RWE Innogy) As of 31 March 2013 >20% <10% >30% >10% >40% >10% >60% >20% >70% >30% >70% >40% >70% >70% >90% >80% >90% >90% 2013 forward >30% >10% >40% >10% >50% >20% >50% >30% >60% >40% >70% >50% 2014
Slide 12: Germany: Clean Dark and Spark Spreads
Germany: Clean Dark (CDS) and Spark Spreads (CSS) 2012 forward 2013 forward 2014 forward Ø 9.96 Ø 7.74 Ø 7.87 Ø 4.93 Ø -2.37 Ø -9.83 Trading year 2011 Trading year 2012 Trading year 2013 CDS Cal 2012 – 14 Base load (€/MWh) Average CDS CSS Cal 2012 – 14 Peak load (€/MWh) Average CSS (assumed thermal
Slide 13: NL: Clean Dark and Spark Spreads
NL: Clean Dark (CDS) and Spark Spreads (CSS) 2012 forward 2013 forward1 2014 forward1 Ø 8.59 Ø 7.63 Ø 9.29 Ø -1.24 Ø -4.55 Ø -7.28 Trading year 2011 Trading year 2012 Trading year 2013 CDS Cal 2012 – 14 Base load (€/MWh) Average CDS CSS Cal 2012 – 14 Base load (€/MWh) Average CSS (assumed thermal ef
Slide 14: UK: Clean Dark and Spark Spreads
UK: Clean Dark (CDS) and Spark Spreads (CSS) 2012 forward 2013 forward1 2014 forward1 Ø 20.66 Ø 13.78 Ø 19.51 Ø 3.55 Ø 3.12 Ø 2.68 Trading year 2011 Trading year 2012 Trading year 2013 CDS Cal 2012 – 14 Base load (€/MWh) Average CDS CSS Cal 2012 – 14 Base load (€/MWh) Average CSS (assumed thermal ef
Slide 15: Performance of the Supply/Distribution Networks Germany Division
Performance of the Supply/Distribution Networks Germany Division January – March: operating result: -2.0% (-€12 million) € million - Loss of earnings from the disposal of Berlin waterworks and KEVAG and transfer of Zagreb wastewater business to CEE/SEE 607 + Efficiency improvements 595 + Cold weathe
Slide 16: Performance of the Supply Netherlands/Belgium Division (Essent)
Performance of the Supply Netherlands/Belgium Division (Essent) January – March: operating result: +27.9% (+€36 million) € million + Weather induced higher gas sales + Absence of one-off costs that occured in previous year 129 165 + Efficiency improvements - Competition induced pressure on gas margi
Slide 17: Performance of the Supply United Kingdom Division (RWE npower)
Performance of the Supply United Kingdom Division (RWE npower) January – March: operating result: +26.4% (+€58 million) € million + Efficiency improvements + Cold weather 278 220 - Negative f/x effects - Lower energy consumption due to energy efficiency improvements - Higher grid fees 2012 2013 Guid
Slide 18: Performance of the Central Eastern and South Eastern Europe Division
Performance of the Central Eastern and South Eastern Europe Division January – March: operating result: +18.9% (+€61million) € million + Positive effect from derivatives to hedge f/x risks Czech Republic: - Increased costs for purchasing gas for our sales business partly offset by improved gas grid
Slide 19: Performance of the Renewables Division (RWE Innogy)
Performance of the Renewables Division (RWE Innogy) January – March: operating result: -2.4% (-€2 million) € million - Lower market prices (power, green certificates) and lower wind levels - Impact from new renewables support scheme in Spain and resulting adjustment of book value in Andasol 3 84 82
Slide 20: Performance of the Upstream Gas & Oil Division (RWE Dea)
Performance of the Upstream Gas & Oil Division (RWE Dea) January – March: operating result: -20.7% (-€50 million) € million - Delay of sale of Norwegian oil volumes - Lower oil and gas production volumes - Lower realised oil and gas prices 241 191 + Lower production costs + Lower royalties in German
Slide 21: Performance of the Trading/Gas Midstream Division
Performance of the Trading/Gas Midstream Division (RWE Supply & Trading) January – March: operating result: +78.6% (+€173 million) € million Trading: - Lower performance in the energy trading business -47 Supply: -220 + Still burdens from long-term oil-indexed gas contracts but lower after commercia
Slide 22: Development of net debt
Development of net debt € billion Capex Dividends Acquisitions/ Cash flows Others Change divestiture/ from including in pension, disposals/ operating f/x effects nuclear, (de)consoli- activities mining dation provisions 36 +0.8 +0.1 -0.4 33.0 -0.1 -0.3 +0.1 33.2 32 28 24 0 Net debt Net debt 31 Dec 2
Slide 23: Development of TTF gas price and brent oil price
Development of TTF gas price and brent oil price Forward for delivery Forward for delivery Forward for delivery Forward for delivery in 2011 in 2012 in 2013 in 2014 €/MWh €/MWh 50 80 40 60 30 40 20 20 10 0 0 -20 Trading year 2010 Trading year 2011 Trading year 2012 Trading year 2013 Spread (right ax
Slide 24: Financial liabilities and assets
Financial liabilities and assets (excluding hybrid capital, as of 31 March 2013) Financial liabilities Financial assets Split of in € billion in € billion securities 25 10 21.1 8.6 19% 7.9 20 2.9 8 1.0 1.6 0.7 16.4 1.2 0.6 15 0.9 6 3.4 3.4 10 4 1.1 16.0 1.1 14.3 4.7 5 2 1.7 3.1 0.7 2.7 0.6 0.3 0.7 1
Slide 25: Capital market debt maturities and sources of financing
Capital market debt maturities and sources of financing Capital market debt maturities1 Strong sources of financing in € billion Fully committed syndicated loan For liquidity (€4.0 bn up back-up to Nov 2017) €0.0 bn Commercial paper $1.2 bn ($5.0 bn) (up to 1 year) €1.0 bn (31 Mar 2013) MTN programm
Slide 26: Capital market debt currency and interest exposure
Capital market debt currency and interest exposure (as of 31 March 2013) 13% 33% €18.8 bn11 €19.5 bn2 67% 87% € Interest rate fixing expiry > 1 year £ Interest rate fixing expiry < 1 year 1 Capital market debt = bonds of €15.1 bn and hybrids of €3.7 bn; split into currencies includes cross-currency
Slide 27: RWE's major investment projects
RWE‘s major investment projects RWE Capex share (€ bn) 2013 2014 2015 2016 2017 2018 Conventional power plant new build programme (capex at 100% share) Hamm (hard coal, 1,528 MW) 77% 2.4 Units D E Eemshaven (hard coal/biomass, 1,560 MW) 100% 2.9 Units A B Denizli (gas, 775 MW) 70% 0.5 RWE Dea‘s larg
Slide 28: Always be informed about RWE
Always be informed about RWE … Follow us on twitter@RWE_IR and have a look at www.rwe.com/ir Calendar http://www.rwe.com/web/cms/en/110614/rwe/investor-relations/events/calendar/ Annual and Interim Reports http://www.rwe.com/web/cms/en/110822/rwe/investor-relations/reports/ Investor and Analyst Conf