RWE an attractive value proposition Attractive portfolio Stable financials Leading market position and Progress in strengthening balance regionally focused strategy sheet Pure utility play exit of upstream Streamlined and…
Main messages Performance in H1 2014 line with expectations: EBITDA -32%, operating result -40%; recurrent net income -62% Group outlook for 2014 confirmed EU Commission and German government approve RWE Dea transaction; closing…
From commodity driven earnings development to attractive regulated profile RWE develops towards an attractive stable downstream business profile with additional focus on renewables and upside potential from conventional power…
RWEs mid-term business profile drivers GENERATION TRADING DISTRIBUTION SUPPLY Selective growth in Ongoing focus on value GER: Stable regulatory Focus on efficiency renewable energy extraction in commercial environment for the next…
Conventional Power Generation: mark-to-market earnings perspective bn 3.5 3.3 3.0 2.5 Mark-to-market (m-t-m)1 2.0 1.5 1.4 1.0 OR m-t-m 0.5 before efficiencies 0.0 2012 2013 -0.5 Efficiencies Operating result (OR)…
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 C 285 Hard coal DE Q1-2016 Gersteinwerk K2 610 Hard coal DE…
Impact of our capacity measures on our total conventional generation portfolio Net decrease in RWE Generations portfolio1 to substantially materialise after 2015 43,716 MW 2,449 MW 3,224 MW 894 110 MW 41,560 MW MW 41,256 MW…
RWE Innogy will provide mid-term earnings growth despite reduced capex volume Development of operating result by 2016 First generation: Commissioning: Commissioning of Gwynt y Mr (576 MW), NSO (295 MW), onshore projects1…
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…
Excellent access to debt capital market is key Leverage target mid-term: < 3.0x; more flexibility short-term bn 29.9 33.0 30.7 In the order of 26.0 Net debt 3.5x 3.5x 3.5x Significantly 3.5x Leverage factor1 19.9 19.4 16.9 13.0…
RWE well on track to reach target of a positive cash balance Cash flows from operating activities to cover investments and dividends by 2015 bn -3.3 -3.8 -2.7 -0.4 0 Cash balance 9.3 8.8 7.1 6.2 5.8 5.5 5.5 4.4 2010 2011…
Deliveries on our measures to improve the leverage situation Measures Earnings improvement through efficiency Efficiency enhancement measures; at least 1.5 bn by 2016 enhancements Reduction of discretionary investments Capex…
Efficiency enhancements Efficiency improvements 1 year ahead of plan At least 1.5 bn net benefit to be achieved by 2016 Net benefit to operating result In million Total programme consists of measures amounting to 2 bn (= gross…
Efficiency enhancements Efficiency measures of 2 bn implemented by the end of 2016 Net benefit by division Conventional Power Generation 10% Holding, other divisions 50% 40% reduction of overhead costs and cross divisional…
Efficiency enhancements Focus on total controllable costs (TCC) 60% of the efficiency programme will be achieved through a reduction of TCC 10.8 bn 10.1 bn 9.0 bn 0.5 0.2 0.4 0.7 5.5 4.9 4.3 5.3 5.2 4.7 2012 2013…
Capex reduction Capex programme reduced to maintenance level bn Approx. 8 bn capex programme 1.0 Renewable projects for 2014 2016 excluding RWE Dea: 0.9 Completing 1.9 bn for major projects conventional power plants 5.6…
Disposals Disposals focus on RWE Dea and Urenco Strategic decision, not for deleveraging purposes RWE Dea Agreement signed with LetterOne Group in March to sell RWE Dea at an EV of c. 5.1 bn EU Commission and German government…
Outlook for 2014 In million EBITDA 8,762 7,904 6,400 6,800 Operating 5,881 result 5,369 3,900 4,300 Recurrent 2,314 2,314 1,200 1,400 net income Dividend 1.00/share Payout ratio of 40% 50% 2013 2013 2014e reported…
Back-up Charts 20
Major earning drivers post 2013 Further decline in realised electricity Efficiency enhancement programme margins (realised outright power (2014 to 2016: at least 500 million) price 2013: 51/MWh) Earnings growth in renewables…
2014 divisional outlook for the operating result million 20131 2014 forecast versus 2013 Conventional Power Generation 1,384 Significantly below 2013 Supply/Distribution Networks Germany 1,626 Moderately above 2013 Supply…
RWEs forward hedging of conventional electricity production (German, Dutch and UK portfolio) As of 30 June 2014 30% 10% 40% 10% 50% 20% 50% 30% 60% 40% 70% 50% 80% 60% 80% 80% 90% 90% 2014 forward 30% 10% 40% 10% 40% 20% 50% 30%…
Contango has been reinstated in the front of the curve Spread between implied versus front year (EUR/MWh)1 Implied Year (FY0)2 Front Year (FY1) Second Year (FY2) Risk premium (right scale) 2012 2013 1 German power baseload…
Germany: Clean Dark (CDS) and Spark Spreads (CSS) 2013 forward 2014 forward 2015 forward 16 12 9.96 7.86 8 5.94 4 0 -4 -2.37 -8 -11.63 -12 -13.07 -16 Trading year 2012 Trading year 2013 Trading year 2014 2…
NL: Clean Dark (CDS) and Spark Spreads (CSS) 2013 forward 2014 forward1 2015 forward1 20 15 11.43 10 8.58 5 7.63 0 -5 -10 -4.55 -8.79 -7.46 -15 -20 Trading year 2012 Trading year 2013 Trading year 2014 2 3…
UK: Clean Dark (CDS) and Spark Spreads (CSS) 2013 forward 2014 forward1 2015 forward1 28 22.49 24 20 19.51 17.36 16 12 8 4 3.07 3.12 0 2.03 Trading year 2012 Trading year 2013 Trading year 2014 2 3 4…
Development of net debt billion Cash flows Capex on Dividends1 Divestments/ Change Others from property, deconsoli- in pension, including f/x operating plant and dations/ nuclear, effects and activities1 equipment capital mining…
Full benefit of deleveraging measures mainly after 2014 Leverage ratio 2014: declining earnings trend overlays efforts to reduce debt Continued pressure on earnings and cash flows induced from falling commodity prices 3.5 Prime…
Capital market debt maturities and sources of financing Capital market debt maturities1 Strong sources of financing bn Fully committed syndicated loan For liquidity 2,5 20 (4.0 bn up back-up to March 2019) 0.0 bn 2,0 16 1,5 12…
RWEs major investment projects RWE Capex share ( bn) 2013 2014 2015 2016 2017 2018 Conventional new build power plant programme (capex at 100% share) Hamm (hard coal, 1,528 MW)1 77% 2.5 Unit E (764 MW) Eemshaven (hard…
Growing uncertainty as to whether sufficient guaranteed capacity will be available Development of guaranteed capacity in Germany, 2012 2022 6 GW 2 GW 5 GW 88 GW 12 GW 69 GW 0 GW - 5 GW - 79 GW - 10 GW 3 GW 15 GW 5 GW…
A decentralised capacity market closes the financing- gap of the electricity market Function of a decentralised capacity market Interaction capacity & electricity market Electricity market Required secure Covered capacity Required…
By 2015 we will have renewed 25% of our electricity generation fleet Gas 12 GW BoA Neurath 12.5 GW out of Lignite 2.1 GW Lignite out 49 of GW (2011) 49.2 GW (2013) Hard coal Staythorpe Moerdijk 2 1.7 GW CCGT 0.4 GW…
The fuel mix of European electricity generators 2013 RWE has one of the most balanced generation portfolios of European electricity generators (installed capacity) 100% 80% 60% Hydro/ Other 40% Gas Hard Coal 20% Lignite…
The fuel mix of European electricity generators 2013 RWE has one of the most balanced generation portfolios of European electricity generators (generation output) 100% 80% 60% Hydro/ Other 40% Gas Hard Coal 20% Lignite…
Practical example for efficiency improvements in the lignite business Availability of our lignite based power generation fleet Measures to improve availability (examples) 100% Optimisation of coal management Improvement of…
Keep up with RWE Follow us on twitterRWE_IR and have a look at www.rwe.com/ir Financial calendar http://www.rwe.com/web/cms/en/110614/rwe/investor-relations/events/calendar/ Annual and Interim Reports…
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