Paving the way for growth with continued focus on financial discipline (as of September 2015)
RWE an attractive value proposition Attractive portfolio Stable financials Pure utility play with leading market Progress in strengthening balance position and regionally focused sheet strategy Streamlined and disciplined Balanced…
Main messages Financial performance first half of 2015: EBITDA -7%, operating result -11%, adjusted net income -28% Successful divestment of RWE Dea for an EV of 5.1bn; net debt improved significantly to 25.6 bn Successful…
On our way to financial robustness as base for long- term growth What we have achieved so far What we are focusing on Establishment of European generation business to drive cost Identification and fostering 1 efficiencies and…
1 Areas of growth Changing energy market offers growth potential Renewables Grids Retail Focus on on- and off- Best in class grid Strong Pan European shore wind management Retail organisation with 1 bn in growth capex Investments of…
2 Generation review Increased earnings pressure on conventional power generation As of March 20141 As of January 20152 ROCE c. 50% 60% c. 25% 35% WACC3 Optimi- sation Market OR 0 c. 60% 70% decline c. 40% 50% FCF3 0 c.…
2 Generation review Conventional Power Generation: mark-to-market free cash flow neutral billion 3.3 3.0 2.0 Mark-to-market (m-t-m)1 1.0 1.0 OR m-t-m Efficiencies before 2012-2017 efficiencies 0.0 -1.0 2012 2014…
2 Generation review 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…
3 Efficiency programme Efficiency programme ahead of schedule, additional measures contribute another 500 million Net benefit to operating result Net benefit by division million 10% Holding and cross 50% 400 divisional effects…
3 Efficiency programme Next wave of efficiencies entails a wide range of performance measures Additional measures focus on cost reduction and cash flow optimisation Costs Implementation of lean programme and improved end-to-end…
3 Efficiency programme Development of total controllable costs (TCC) Continuous reduction of TCC (nominal values) 10.8 bn 10.1 bn 8.7 bn 8.5 bn 0.5 0.2 0.4 1.0 0.1 0.1 5.5 4.9 3.9 3.9 5.3 5.2 4.8 4.6 2012 2013 2014…
4 Financial discipline Capex programme reduced to maintenance level Further growth projects have to be financed debt-neutral, e.g. by the disposal of other assets or partnering solutions billion Approx. 6.5 7.0 bn capex 1.5 2.0…
4 Financial discipline Positive cash balance reached 1 year ahead of plan Cash flows from operating activities to cover investments and dividends billion Cash balance -2.7 -0.7…
4 Financial discipline Excellent access to the capital market is key to us Significant reduction of net financial debt Achievements billion Strong decrease of net 29.9 33.0 30.7 31.03 < 2014 Net debt financial debt Leverage…
4 Financial discipline Net debt mainly driven by provisions with ultra-long duration Net debt as of 30 June 2015 comprises 6.6 bn net financial debt (incl. 50% of hybrids) and 18.9 bn provisions. Provisions not subject to financial…
Outlook for 2015 million EBITDA 7,131 6,100 6,400 Operating 4,017 3,600 3,900 result Adjusted 1,282 1,100 1,300 net income1 Dividend 1.00/share Oriented towards growth opportunities, indebtedness and earnings…
Dividend policy reflects whole economic situation Dividend of the preceding year serves as a reference point for the dividend proposal Earnings situation Dividend Leverage Growth and cash flow opportunities situation…
Back-up charts
Political environment in Germany I Climate protection plan via strategic capacity reserve Transfer of 2.7 GW CHP generation target lignite capacity into of 25% of total thermal a strategic reserve power generation Plants will be shut…
Political environment in Germany II White book for a new market design New market design: Energy Only Market 2.0 with capacity reserve Further development of existing competitive, market-based energy market (Energy Only Market 2.0); no…
Political environment in Germany III Treatment and management of nuclear liabilities Stress testing of Review of nuclear Responsibility for nuclear provisions liability management nuclear liabilities Assessment of Evaluation of…
Political environment in the UK CMA Energy Market investigation CMA1 findings of Adverse Effect on Competition RWE assessment 1 Absence of locational pricing for losses 2 Mechanisms for allocating CFDs Weak customer response and…
Becoming faster and getting closer to customers Main steps Key achievements Transformation of RWE AG from a Faster decision making processes through holding into an operating company alignment of steering model and legal governance…
RWEs mid-term business profile drivers GENERATION TRADING DISTRIBUTION SUPPLY Selective growth in Ongoing focus on value GER: Stable regulatory Focus on value enhancing renewable energy extraction in commercial environment for the…
More customers will produce self-generated power and will be enabled to manage their consumption Changing energy landscape Trends in retail markets Household Increase in decentral energy customer production from household customers…
RWE in European downstream markets Gas market share 2014 Sales to end-customers and redistributors RWEs gas customers3 by country [000] = 7,155 2,169 Germany 11% 1,969 1,290 1,397 Netherlands/ 11% Belgium UK 5% 211 119 Central…
2015 divisional outlook for the operating result million 2014 2015 forecast versus 2014 Conventional Power Generation1 979 Significantly below 2014 Supply/Distribution Networks Germany 1,871 Moderately below 2014 Supply NL/B 146…
RWEs forward hedging of conventional electricity production (German, Dutch and UK portfolio) As of 30 June 2015 30% 10% 40% 10% 40% 20% 50% 30% 60% 40% 60% 50% 80% 60% 90% 70% 90% 70% 2015 forward 31 Dec. 2012 31 March 2013 30…
RWE successfully qualified approx. 8 GW for the UK capacity market Plant MW1 Plant type First UK capacity auction for winter 2018/19 settled at Aberthaw 1,486 Coal/OCGT 19.40/kW (2012 money). Didcot B 1,364 CCGT The result was…
Clean Dark (CDS) and Spark Spreads (CSS) 2016 forward for Germany, UK and Netherlands Trading year 2015 Germany UK1 Netherlands /MWh /MWh 18 18 14 14 11.88 11.48 10 10 6 6 5.25 5.32 2 2 -2 -2 -4.90 -6 -6 -6.64 -10…
Capital market debt maturities and sources of financing Capital market debt maturities1 Strong sources of financing billion Fully committed syndicated loan For liquidity 2.5 2,5 20 20 (4.0 bn up back-up to March 2020) 0.0 bn…
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 November 2015 http://www.rwe.com/ir/reports/ Interim Report on Q1-Q3 2015…
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