Rwe Ag · XETR:RWE
Rwe — Investor Presentation (June 2016)
29 slides from Rwe's investor presentation, June 2016
Slide 1: Transforming RWE and securing a sound financial base
Transforming RWE and securing a sound financial base (as of June 2016)
Slide 2: Notice
Notice: This document and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell or a solicitation of an offer to buy any securities in the United States. Any securities referred to herein have not been and will not be registered und
Slide 3: Three steps to securing a sound financial base
Three steps to securing a sound financial base RWE AG innogy shareholders shareholders 100% ~10% RWE AG ~90% innogy innogy Efficiencies Dividend > Listing of a leading > Step up of efficiency > Dividend policy reflects the European utility programme by another general business situation comprising g
Slide 4: Formation of a unique and leading European utility
Formation of a unique and leading European utility > RWE to establish a new leading European utility comprising the grid, retail and renewables businesses > Conventional power generation and trading RWE AG innogy businesses retained as separate functional units shareholders shareholders with RWE AG
Slide 5: Designated management team for innogy with long-standing experience and extensive industry knowledge
Designated management team for innogy with long- standing experience and extensive industry knowledge Peter Terium Bernhard Günther Uwe Tigges > Chief Executive Officer > Chief Financial Officer > Chief HR Officer > 13 years sector experience > 18 years sector experience > 32 years sector experience
Slide 6: innogy: Strong downstream business with attractive renewables footprint
innogy: Strong downstream business with attractive renewables footprint Grid Supply Renewables > RWE operates 550,000 km of > Strong retail organisation with > Renewables portfolio of more grid assets in five European 23m customers in 11 European than 3.3 GW capacity mainly in markets (GER, PL, CZ,
Slide 7: innogy: Opportunity to invest in one of the leading European utilities of tomorrow's energy world
innogy: Opportunity to invest in one of the leading European utilities of tomorrow’s energy world Unique new utility stock Attractive financial profile > Unique new utility stock with exposure mainly > Strong and stable cash flow generation to stable European markets > Currently >60% EBITDA derived
Slide 8: RWE AG: Focused business portfolio with clear management mandate
RWE AG: Focused business portfolio with clear management mandate Conventional Power Generation Supply & Trading > Highly efficient and modernised power > Commercial asset optimisation of plant portfolio generation fleet – full exploitation of > Reduction of lignite generation in line with optionalit
Slide 9: Persistent pressure on conventional power generation met by continued efficiency efforts
Persistent pressure on conventional power generation met by continued efficiency efforts €/MWh € million €60 60 1200 €51 50 €48 €41 40 800 30 20 400 10 0 0 2012 2013 2014 2015 German 1 year base load forward (lhs) RWE average realised power price (lhs) Net benefit to operating result from efficiency
Slide 10: Additional measures identified to improve cash flow situation for conventional power generation
Additional measures identified to improve cash flow situation for conventional power generation Indicative Free Cash Flow Situation1 Measures to improve cash flow situation > Further optimisation of maintenance strategy including reduction of day-to-day Coal NL Coal UK capex and opex in order to tak
Slide 11: New structure provides three upsides for RWE AG
New structure provides three upsides for RWE AG Clear strategic > Creation of homogenous business portfolios with clear strategic focus focus > Increased management attention to address specific challenges and opportunities of different businesses Value > Unlock value through enhanced transparency v
Slide 12: Efficient capital structure and allocation
Efficient capital structure and allocation RWE AG (ex innogy) innogy Conventional Supply & Trading Grid Retail Renewables power generation Nuclear and Senior bonds Pension and Pension and Senior Bonds & Other financial mining and other provisions other provisions IC Loans debt provisions hybrid capi
Slide 13: Efficiency programme reaches €2.5 billion through GenCo's efforts
Efficiency programme reaches €2.5 billion through GenCo’s efforts to identify improvement measures Net benefit to operating result Net benefit by division € million ~60% ~10% Conventional Power Holding and other Generation Additional programme: 500 ~10% Outstanding from old programme: 400 Grids/Part
Slide 14: RWE maintains disciplined capex approach and secures investment opportunities
RWE maintains disciplined capex approach and secures investment opportunities Day-to-day/maintenance capex of €1.8 billion complemented with up to €700 million in potential growth investments Day-to-day investments in € billion for 2016 > Total capex for 2016 expected to be between €2 – 2.5bn, depen
Slide 15: Reliable access to the capital market is key to us
Reliable access to the capital market is key to us Significant reduction of net financial debt Achievements € billion Strong decrease of net financial debt 29.9 33.0 30.7 31.01 25.1 Net debt Net financial debt (incl. 50% hybrids)/ EBITDA < 1x (2015) 19.9 19.6 20.6 Ample liquidity after Dea sale 18.8
Slide 16: Outlook for 2016 confirmed
Outlook for 2016 confirmed 2015 reported 2016e1 € million EBITDA 7,017 5,200 – 5,500 Operating 3,837 2,800 – 3,100 result Adjusted 1,125 500 – 700 net income Dividend2 Common shares: - Oriented towards growth opportunities, indebtedness and Preferred shares: €0.13 earnings situation. 1 The outlook a
Slide 17: Back-up charts
Back-up charts The energy to lead
Slide 18: RWE AG's asset base remains unchanged in light of the envisaged transaction
RWE AG’s asset base remains unchanged in light of the envisaged transaction illustrative Capital 10% stake 10% IPO increase new investors RWE AG’s assets 100% stake in 90% RWE stake grid, supply & in innogy renewables GenCo + GenCo+ trading trading Today Capital increase/ innogy IPO 18
Slide 19: Grid business with excellent track record and growing RAB
Grid business with excellent track record and growing RAB Key facts, 2015 Business highlights > Operated grid length (thousand km) Position > Electricity 440 > Leading positions in core markets (e.g., largest electricity > Gas 110 DSO in Germany, largest gas DSO in Czech Republic) > Strong track rec
Slide 20: Retail activities well-positioned in many countries
Retail activities well-positioned in many countries Key facts, 2015 Business highlights > Customers (million) Position (by volumes sold/customer numbers) > Electricity, of which 16.4 > Leading electricity and gas retailer with four No. 1 market > Germany 6.8 positions > UK 3.2 > Market leader in Ger
Slide 21: innogy amongst Top 5 offshore wind players, heading to leverage pipeline for future growth
innogy amongst Top 5 offshore wind players, heading to leverage pipeline for future growth Key facts, 2015 Business highlights > Installed capacity1 Current position > Renewables >3.3 GW > RWE has a leading position in the European offshore market > Geographical focus > Well-positioned in selected E
Slide 22: Overview of capacity measures
Overview of capacity measures Measure Plant MW1 Fuel Location Date Decom- Amer 8 610 Hard coal NL Q1-2016 missioning Goldenbergwerk 110 Lignite DE Q3-2015 Westfalen C2 285 Hard coal DE Q1-2016 Gersteinwerk K2 610 Hard coal DE Q1-2019 Long-term Claus C 1,300 Gas NL Q3-2014 mothballing3 Gersteinwerk F
Slide 23: RWE's forward hedging of conventional electricity production
RWE’s forward hedging of conventional electricity production (German, Dutch and UK portfolio) As of 31 March 2016 >30% >20% >40% >10% >40% >10% >60% >10% >60% >20% >80% >40% >90% >60% >90% >80% >90% >90% 2016 forward 31 Dec. 2013 31 March 2014 30 June 2014 30 Sep. 2014 31 Dec. 2014 31 March 2015 30
Slide 24: Clean Dark and Spark Spreads 2015-2017
Clean Dark (CDS) and Spark Spreads (CSS) – 2015 - 2017 (forwards for Germany, UK and Netherlands1) Germany UK2 Netherlands Cal15 Cal16 Cal17 Cal15 Cal16 Cal17 Cal15 Cal16 Cal17 €/MWh €/MWh 20 20 Ø16.97 15 15 Ø10.52 Ø11.21 10 10 Ø9.18 Ø6.63 Ø5.80 Ø7.05 5 Ø5.09 5 Ø3.65 Ø4.83 Ø 3.69 Ø4.02 0 0 Ø -1.27 Ø
Slide 25: Capital market debt maturities and sources of financing
Capital market debt maturities and sources of financing Capital market debt maturities1 Sources of funding1 € billion 2,0 2.0 18,0 18.0 Syndicated loan facility €0.0bn out of €4.0bn (until March 2021) (Back up liquidity) 1,5 1.5 13,5 13.5 Commercial papers $3.5bn out of $5.0bn 1,0 1.0 9,0 9.0 (up to
Slide 26: Capital market debt: Currency and interest exposure
Capital market debt: Currency and interest exposure (as of 31 March 2016) Currency exposure1 Interest exposure2 1 22% 37% 63% 78% € Fixed interest payments £ Floating interest payments (fixing expiry ≤ 1 year) 1 Capital market debt (senior bonds and hybrids) including cross-currency swaps. 2 Capital
Slide 27: RWE AG: 2016 divisional outlook for the operating result
RWE AG: 2016 divisional outlook for the operating result € million 2015 pro-forma1 2016 forecast2 Conventional Power Generation3 596 Significantly below 2015 Renewables 488 Significantly below 2015 Trading/Gas Midstream 156 Significantly above 2015 Grids/Participations/Other 1,955 Significantly belo
Slide 28: Keep up with RWE …
Keep up with RWE … Follow us on twitter.com/RWE_IR and have a look at www.rwe.com/ir Important links Financial Calendar Annual and Interim Reports 12 May 2016 http://www.rwe.com/ir/reports/ Interim Report on the first quarter of 2016 Investor and Analyst Conferences 11 August 2016 http://www.rwe.com
Slide 29: RWE Investor Relations – contacts
RWE Investor Relations – contacts Contacts for Institutional Investors & Financial Analysts Dr. Stephan Lowis Martin Vahlbrock Gunhild Grieve Dr. Holger Perlwitz Vice President Investor Relations Tel.: +49 201 12-15055 Tel.: +44 207 015-5459 Tel.: +49 201 12-15141 and Group Finance martin.vahlbrock@