Investor Presentation - As of August 2020 - RWE AG
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Investor Presentation As of August 2020
Disclaimer
This document contains forward-looking statements. These statements are based on the current views,
expectations, assumptions and information of the management, and are based on information currently available
to the management. Forward-looking statements shall not be construed as a promise for the materialisation of
future results and developments and involve known and unknown risks and uncertainties. Actual results,
performance or events may differ materially from those described in such statements due to, among other things,
changes in the general economic and competitive environment, risks associated with capital markets, currency
exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to
tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates
assumes any obligations to update any forward-looking statements.
August 2020 Investor Presentation Page 2
Our energy for a sustainable life
We all need electricity – children as well as adults, small companies
as well as large ones. Wherever there is electricity, there is light,
warmth and communication, production,
medical care and mobility. Electricity is life.
August 2020 Investor Presentation
Creating value in the renewable energy world
Investment highlights
Uniquely positioned to benefit from the energy transition
Attractive growth opportunities in renewable energy
Strict focus on value creation and shareholder return
Strong commitment to sustainable development goals
Highly motivated team incentivised to deliver strategic targets
August 2020 Investor Presentation Page 4Business model fully aligned with our strategic focus
on the energy transition
Core Coal/Nuclear
Offshore Onshore Hydro/Biomass/ Supply • German lignite
wind wind/Solar Gas & Trading operations; mines
and plants
• Global offshore • Onshore and solar • Hydro, biomass and • Trading/origination • German hard coal
activities operations in gas plants in plants
• Gas & LNG
• Europe & APAC Germany, UK, • German nuclear
• Commodity
Netherlands power plants
• Americas solutions
• Kelag stake • Holding in Dutch
• Principal
EPZ (nuclear)
investments
• Gas storage
business
GW g/kWh
Installed capacity1 Carbon factor2 Share of coal in
1 Pro rata installed capacity of core business. | 2 Calculated for pro forma generation portfolio of core business. | Note: Figures for FY 2019. Group revenues
August 2020 Investor Presentation Page 5Decarbonisation is an integral part of our strategy
CO2
Target to achieve CO2 neutrality for our Neutral
global generation portfolio by 2040 million
tonnes
Fully supportive of
Paris Climate Agreement
Proven track record of carbon
emission reductions
2012 2019 2030 2040
August 2020 Investor Presentation Page 6Our commitment to the UN SDGs goes beyond carbon reduction and
RWE receives recognition in leading sustainability ratings
Seven SDGs were defined as material in relation to our business activities
• 27% and 19% • Leading operator of • Strong employer • Focus on storage • Strong commitment • Recultivation • Strict compliance
women in 1st and wind and solar with ~ with workforce of technologies to to global climate programme with requirements with
2nd management ~9 GW installed more than 20,000 support the energy goals focus on RWE’s Code of
level1 capacity people transition • Target to be carbon biodiversity Conduct
• Member of the • Highly efficient and • Regional support for • Part of High-Tech neutral by 2040 • Increase in ecology • Member of
2020 Bloomberg flexible power plant structural change Gründerfonds III in renaturalised Bettercoal to
Gender Equality portfolio and energy since 2017 mining areas promote standards
Index (GEI) transition in hard-coal supply
chain
68 out of 1002 A (from AAA to CCC) C+ (from A+ to D-)
B (Climate Change) 54 out of 100 (12th out of 30 utilitites)
1 Below the Executive Board of RWE AG. | 2 Sustainalytics ESG Rating.
August 2020 Investor Presentation Page 7H1 2020 Earnings & Operations Successful first six months of the year August 2020, H1 Earnings call August 2020 Investor Presentation
Successful first half 2020 – continuous improvement of
renewables pipeline and FY outlook confirmed
• Adj. EBITDA for core business up ~9% to €1.5bn versus pro forma 2019, adj. EBITDA of
RWE Group at €1.8bn
• FY2020 outlook and dividend target of €0.85 per share confirmed. Adj. EBITDA for core
business and Group to be at the upper end of guidance
• Net debt at ~€7.8bn at the end of June in line with expectations. Leverage factor of 3.0x (net
debt/core adj. EBITDA) at year end envisaged
• Final step of transaction with E.ON closed. Full legal & HR integration completed
• Broad market entry France: Onshore Wind/Solar development pipeline of 2.7 GW to be
acquired from Nordex
• German Coal Phaseout Act becomes law - clear path for RWE on how to exit coal
August 2020 Investor Presentation Page 9Deal to acquire Nordex’s 2.7 GW European Onshore Wind/Solar
development pipeline underpins future growth ambitions
We strengthen our European market presence in Onshore Wind/Solar
• Market entry in France, an attractive renewables
market with ambitious build-out targets by 2030
• Experienced team of more than 70 professionals
~1.8 GW Onshore and ~0.4
> 0.1 GW Solar development mostly based in France will join RWE upon completion
pipeline of the transaction
French support scheme:
20yrs index-linked • Well balanced pipeline in France, Spain, Sweden and
2-sided CfD Poland across different development stages –
>0.01
commissioning of approx. 500 MW by 2025
• Approx. 230 MW with secured CfDs or CR2017 tariffs
~1.9 • Closing expected before year end 2020 following
receipt of customary approvals
European Markets
with RWE Onshore ~0.4
Wind/Solar assets in
operation
GW from Nordex development pipeline
August 2020 Investor Presentation Page 10Adj. EBITDA of core business on the rise to €1.5bn in H1
Core adj. EBITDA H1 2020 vs. H1 2019 pro forma, € million
+9%
1,497
1,377
322 • Excellent wind conditions in Q1 push Offshore
Supply & Trading 461 Wind earnings to high level in H1
324 • Capacity additions and good wind conditions
Hydro/Biomass/Gas 221 strengthen earnings at Onshore Wind/Solar
273
Onshore Wind/Solar 244 • Increase in result at Hydro/Biomass/Gas mainly
due to GB capacity payments
Offshore Wind 490 585
• Supply & Trading puts in a strong performance
-39 -7
Other/Consolidation
H1 2019 H1 2020
core adj. EBITDA core adj. EBITDA
pro forma
Adj. EBITDA for RWE Group, incl. Coal/Nuclear amounts to €1,807 million (+18%) in H1 2020
Note: pro forma adj. EBITDA according to new business segments and inclusion of assets acquired from E.ON for full FY2019.
August 2020 Investor Presentation Page 11Further investment decisions for onshore and solar projects
of ~200 MW – on track to reach >13 GW target
Wind/Solar installed capacity increases to 8.9 GW and further 3.1 GW under construction/FID
H1 2020
GW pro rata
>13.0
• FID for Hickory Park solar farm in US
1.1
0.9 (196 MW), with co-located storage
0.9 (40 MW). Expected COD 2021
8.7 8.9 1.3
0.2 0.9 Offshore • Further FIDs for smaller Onshore/Solar/
0.4 Onshore
Battery projects in NL, PL, IE taken
0.5 Solar
1.2 Onshore
• Agreement for Lease secured for UK
0.1 Solar
Awel y Môr Offshore wind farm (300 MW)
• Dublin Array offshore project (300 MW) in
Ireland fast tracked. Expected COD 2026
Installed Changes Installed COD COD COD Residual Target • Floating offshore demonstration project
capacity capacity 2020 2021 2022 target 2022 of 10-12 MW in Maine, US
3131
DecDec
2019 3031
JunMar
2020 Projects under
19 20 construction/FID
Note: Additional 30 MW installed capacity from batteries as well as battery projects of 109 MW under construction/FID. | Excluding capacity addition from the Nordex development pipeline.
Rounding differences may occur.
August 2020 Investor Presentation Page 12Where are we with our major construction projects?
Offshore Wind Onshore Wind Solar
Project Triton Knoll Kaskasi Clocaenog Forest Cranell Big Raymond Scioto Ridge Limondale
Country
Capacity 509 MW 342 MW 96 MW 220 MW 440 MW 250 MW 249 MW
pro rata
Expected COD Q1 2022 Q4 2022 Q3 2020 Q3 2020 Q4 2020 and Q4 2020 Q1 2021
prev. Q2 2020 prev. Q2 2020 Q1 20211 prev. Q4 2020
Status Construction – Preparation Phase Commissioning Phase Commissioning Phase Construction – Construction – Commissioning Phase
on track slightly delayed on track
Comments Offshore Contracts signed All turbines Grid availability Construction work Construction work Registration has
construction with main generating, final has been achieved progressing. All ongoing. Turbine been received by
ongoing with suppliers; offshore wind farm testing long lead time erection is the grid operator
cables, substations construction works and final COD balance of plant progressing. Grid and the hold point
and foundations to start in outstanding equipment and availability has testing as well as
all progressing in Q3 2021 material is on site. been achieved and final commission-
advance of turbine COVID-19 related turbine commis- ning process is
installation in supply chain issue sioning will begin commencing
2021 on portion of shortly
turbine supply
1 Gradual commissioning process: Raymond East, 200 MW expected COD Q4 2020, Raymond West, 240 MW expected COD Q1 2021. | Note: Construction including pre-construction/preparation works.
August 2020 Investor Presentation Page 13Adj. net income of ~€0.8bn at solid level as a result of a very
good operational performance in H1 2020
Adj. net income, € million
H1 2020
Adj. EBITDA 1,807 • Adj. EBITDA excludes non-operating result
H1 2020
• Adj. financial result includes E.ON dividend of €182
Adj. depreciation -719 million as well as losses in financial asset portfolio from
Q1 and negative mark-to-market valuation of FX
1,088
derivatives. Financial result mainly adjusted for lower
Adj. EBIT
discount rates of mining provisions
• Adjustments of tax refer to a general tax rate of 15%
Adj. financial result -140 in line with the expected mid-term tax level at RWE
Group1
Adj. tax -142 • Adj. minority interest mainly for fully consolidated
wind/solar projects, adjusted for minorities stemming
Adj. minority interest -11 from discontinued operations
Adj. net income
795
H1 2020
1 General tax rate of 15% for the planning horizon is based on a blended calculation of local tax rates, the use of loss carry forwards and low taxed dividend income, e.g. from E.ON and Amprion.
August 2020 Investor Presentation Page 14Adj. operating cash flow tops €2bn mainly due to
good adj. EBITDA
Reconciliation to adj. operating cash flow, € million
H1 2020
2,060 • Changes in provisions driven by legacy and
76 -24
1,807 restructuring provisions among others
437
-236
• Positive effects in ‘Changes in operating working
capital’ mainly from receipt of GB capacity market
payments for the years 2018 (pro rata) and 2019
as well as reduction of gas inventories
• Positive ‘Cash financial result’ as a result of E.ON
dividend in Q2
Adj. Changes in Changes Cash Cash Adj.
EBITDA provisions/ in financial taxes operating
(Non-) operating result cash flow
Cash working
items1 capital
1 Excludes nuclear provisions since utilisation is not net debt effective and will be refinanced via financial debt.
August 2020 Investor Presentation Page 15Net debt increase since fiscal 2019 due to timing effects from
hedging activities as expected
Development of net debt continuing operations, € billion
H1 2020
7.8
6.9 -0.1
1.5
-2.1 0.5
1.0
RWE Adj. operating Net cash Dividend Other changes in Changes in RWE
continuing cash flow investments net financial debt provisions2 continuing
operations operations
31 Dec 191 30 Jun 20
• RWE’s dividend payment for fiscal 2019 after virtual AGM on 26 June 2020
• Timing effects from hedging such as variation margins and CO2 provisions of ~€1bn in ‘Other changes in net financial debt’
• Changes in provisions driven by a decrease in pension provisions and partly offsetting effect from wind provisions
1Adjustment of approx. -€0.1bn from retroactive adjustment to the initial consolidation of the renewable energy business acquired from E.ON in 2019. | 2 Includes pension and wind provisions but excludes
nuclear provisions as they are not part of adj. operating cash flow. | Note: Rounding differences may occur.
August 2020 Investor Presentation Page 16Outlook for fiscal year 2020 Core adj. EBITDA: ~€2.15 – 2.45bn Adj. EBITDA RWE Group: ~€2.7 – 3.0bn Adj. EBIT: ~€1.2 – 1.5bn Adj. net income: ~€0.85 – 1.15bn Dividend target: €0.85 per share August 2020 Investor Presentation
Strategy & Financial Update March 2020 Creating value in the renewable energy world March 2020, Capital Market Day August 2020 Investor Presentation
We are ideally positioned
for the new energy world
Experienced operator
Strong wind and solar business of flexible assets Leading commercial platform
GW installed GW in hydro, Global commodity trading
wind and solar biomass and & commercial asset
capacity gas plants optimisation
No. offshore Thereof GW Global analyst platform
global player pumped storage/batteries is key to our success
GW develop- bcm of gas Commodity solutions for
ment pipeline storage blue chip
customers
Note: Pro rata installed capacity. Figures as of 31 Dec 2019.
August 2020 Investor Presentation Page 19Powerful position in wind and solar
Installed capacity by technology1 Installed capacity per country1 Pro forma EBITDA 2019
Solar ROW Onshore Wind/
Germany Solar Americas
2% Offshore 3%
16% 9%
28% Offshore
US 38% Onshore 22% Wind
8.7 GW 8.7 GW Wind/ €1.4 bn
24% UK
4% Solar
70% Europe 69%
5% 3%
Onshore 5% & APAC
Italy Netherlands
Spain Poland
Increasing capacity2 High level of earnings stability
Projects under Regulated Years weighted average
GW construction or secured3 remaining contracted tenor4
1Pro rata, excluding storage. | 2 Excluding storage. | 3 Including Feed-in tariffs (FiTs), contracts for difference (CfDs), fixed certificates and PPAs/Tax credits.. | 4 Includes assets in operation and under construction
with CfDs/FiTs, fixed certificates, PPAs/Tax credits. | Note: Figures as of 31 Dec 2019. Rounding differences may occur.
August 2020 Investor Presentation Page 20Strategy of core business focused on expansion of green
and flexible energy
Build-out of batteries and
Significant growth in wind & solar research in new technologies Green power commercialisation
GW pro rata • Batteries: 30 MWh battery 15 year PPA for Nysäter project
storage facility under covering 18 TWh - one of the largest
construction in Ireland onshore wind PPAs globally
15 year tailored PPA with Honda for
• Thermal energy storage: 120 MW offtake from a 150 MW
pilot project of liquid salt wind farm in Oklahoma, US
storage charged by wind and
Commercialisation of electricity
sun power
generated by Belgian Northwester 2
• Hydrogen: Feasibility study wind farm
to build 105 MW power-to-
gas pilot project 5 year offtake agreement for portion
of Nordsee Ost offshore wind farm
2019 Target
2022 7 year supply agreement to take 3
TWh of green energy
Note: Installed capacity excluding storage. As of 31 Dec 2019.
August 2020 Investor Presentation Page 21Offshore Wind: Attractive near-term build-out coupled
with long-term development options
Secured near-term capacity build-out Further projects in development, GW pro rata
GW pro rata 4.9 Delta Nordsee Pre-emption right 0.5 GW
1.4
0.2 Nordsee Two&Three Pre-emption right 0.1 GW
2.5 0.3
0.5
Rampion Extension option 0.4 GW
Gwynt y Môr Extension option 0.3 GW
2019 Triton1 Kaskasi Dunkerque Sofia 2026 2 Greater Gabbard Extension option 0.3 GW
Knoll Galloper Extension option 0.1 GW
Country Dublin Array Development project 0.3 GW
Sharco II, IV & V Development project 1.5 GW
Exp.
2022 2022 2026 2026
COD Baltic II Development project 0.3 GW
CfD strike Södra Midsjöbanken Development project 1.6 GW
price (per £74.75 3 >€46.6 4 €44 £39.65 3
MWh) 5.4 GW
1 Under construction. | 2 Before asset rotation. | 3 2012 prices. | 4 €46.6 per MWh was the average strike price achieved in the auction. | Note: As of 31 Dec 2019.
August 2020 Investor Presentation Page 22Onshore Wind/Solar Europe & APAC: Well diversified pipeline
providing opportunities for profitable growth
Development pipeline Near-term capacity build-out and development by the end of 2022
GW pro rata GW pro rata
4.5
0.6 2.9 0.8
0.8
~5.0
Installed Under construction Near-term Estimated
capacity 2019 growth ambition installed capacity
4.4
2022
Selected projects Capacity COD Support scheme Support expiry Offtake partner
Clocaenog Forest 96 MW Q1 2020 Two-sided CfD1 2035 n.a.
Alarcos 45 MW Q2 2020 PPA n.a. Audax Renovables
Limondale 249 MW Q3 2020 LGC2 2030 n.a.
Eekerpolder 63 MW Q4 2020 One-sided CfD1 2035 Market/Government
Zukowice 33 MW Q4 2020 Two-sided CfD1 2035 n.a.
Nysäter 95 MW Q4 2021 Firm hedge + Green certificates 2036 Energy company
1 CfD: Contract for Difference. | 2 LGC: Large Scale Generation Certificates (Green certificates for large producers in Australia). | Note: Installed capacity excluding storage. | As of 31 Dec 2019.
August 2020 Investor Presentation Page 23Onshore Wind/Solar Americas: Substantial 2020 wind construction
programme, with good optionality during PTC ramp-down
Development pipeline Near-term capacity build-out and development by the end of 2022
GW pro rata GW pro rata
5.4
3.4 0.6
1.4
4.6 ~9.7 5.1
Installed Under construction Near-term Estimated installed
capacity 2019 growth ambition capacity 2022
Major projects Capacity COD ISO Offtake product Offtake tenor Offtake partner
Cranell 220 MW Q2 2020 ERCOT Firm hedge hub 12 years Undisclosed LSE1
Peyton Creek 151 MW Q1 2020 ERCOT Self-structured hedge 10 years Multiple trading counterparties
Vauxhall & Hull 47 MW Q2 2020 AESO UC2 PPA node Mid-term3 Consumer staples
Big Raymond 440 MW Q4 2020 ERCOT UC2 PPA + Firm hedge 12 years Austin Energy + Banking sector
Scioto Ridge 250 MW Q4 2020 PJM Firm hedge hub Long-term4 Service sector
Boiling Springs 148 MW Q4 2020 SPP UC2 PPA hub 15 years Honda
Cassadaga 126 MW Q4 2020 NYISO Firm hedge node Long-term4 Utility
1 LSE: Load serving entity. | 2 UC: Unit contingent. | 3 Mid-term: 6-10 years. | 4 Long-term: 11-20 years. | Note: PTC: Production Tax Credits. | Note: As of 31 Dec 2019.
August 2020 Investor Presentation Page 24Responsible phaseout of coal by 2038 at latest
23.2 GW
12.7 GWRWE’s core business set to show solid growth into 2022
Outlook for adjusted EBITDA for RWE’s core business Offshore Wind
€ bn Contribution of Triton Knoll 2021/2022
~8% p.a.
2.7 ~2.55 – 2.85
Onshore Wind/Solar
~2.15 – 2.45
Supply & Trading Contribution from new net capacity of ~3.5 GW
Hydro/Biomass/Gas Hydro/Biomass/Gas
Onshore Wind/Solar Declining GB capacity payments expected to
be partly offset by increasing generation spreads
Offshore Wind
Supply & Trading
2019 2020e 2022e Return to normalised level after exceptionally
pro forma high earnings in 2019
Note: 2019 pro forma adj. EBITDA includes approx. €0.5 bn outperformance of RWE Supply & Trading.
August 2020 Investor Presentation Page 26Significant investments to grow wind & solar capacity
to >13 GW by 2022
RWE’s core capex programme 2020 – 2022 Gross growth capex by region and technology
€ bn Offshore Onshore Solar &
~3-4 ~8-9
Onshore wind wind storage
~25% Wind/Solar
Germany ~10%Value added by attractive returns in the renewables business
IRR requirements for wind/solar projects
Offshore Wind • Investment decisions based on strict hurdle rate
approach with project IRR typically exceeding base
renewables WACC by 100 to 300 bps
Mature markets 5.5% 8.5% • Hurdle rates include risk premia depending on
project risk profile (technology, regulatory and
New markets 7.0% 10.0% remuneration risk)
Onshore Wind/Solar • Project returns do not include disposal gains, costs
for management support and new markets scouting
Europe 4.5% 8.0% • Evaluation of investment decisions include pay back
profiles and sensitivity analysis
US 5.5% 8.0% • Post completion review to monitor investment
performance
New markets 6.5% 9.5%
August 2020 Investor Presentation Page 28Solid capital structure provides financial flexibility for core
business
• Net debt of €7.0 bn after financial ring-fencing of
New definition of net debt 31 Dec
coal phaseout liabilities (€ million) 2019
• 2019 leverage factor1 Financial assets 9,098
X
Financial liabilities 5,179
• Targeted leverage factor (incl. hybrid capital adjustment)
(net debt/core adj. EBITDA) of ≤3.0x
Net financial assets 3,919
• Focus on maintaining investment grade (incl. hybrid capital adjustment)
rating with target of at least
Provisions for pensions and similar obligations 3,293
Baa2/BBB
Provisions for nuclear waste management 6,723
Provisions for dismantling wind farms 951
Net debt of continuing operations 7,048
1 Net debt/pro forma core adj. EBITDA; pro forma: new business segmentation and inclusion of E.ON‘s acquired assets for full fiscal year 2019.
August 2020 Investor Presentation Page 29Commitment to financially ring-fence coal phaseout liabilities
with financial portfolio
Funding of coal phaseout liabilities
€ bn • Provisions for mining liabilities reflecting accelerated
4.6
coal phaseout total €4.6 bn
• Agreement with German government includes
compensation payment of €2.6 bn payable over
E.ON stake 15 annual instalments
• Commitment to back amount with adequate
financial portfolio. Financial portfolio currently
Receivables
consists of
against GER
2.6 government - Receivables against German government
- 15% stake in E.ON (income from financial portfolio
recognised in ‘financial result’)
Mining Financial
provisions portfolio
31 Dec 2019
August 2020 Investor Presentation Page 30RWE targets continued dividend growth in line with core
business development
Elements of dividend policy
• Management focus on total shareholder return €/share
2
0.85
• Target to grow future dividends in line with earnings 0.80 1
growth in core business
• Objective of steady growth with potential to smooth
Steady
short-term volatility of trading business and
growth,
weather effects
in line
• Dividend strategy corresponds to a payout ratio with core
between ~40% and ~60% of adjusted net income business
2019 2020
1 Subject to AGM approval. | 2 Management target.
August 2020 Investor Presentation Page 31Appendix August 2020 Investor Presentation
Core
Offshore Wind: Earnings on the up thanks to excellent wind
conditions in Q1
Key financials H1 - Offshore Wind H1 2020 vs. H1 2019 pro forma
pro forma
€ million H1 2020 H1 2019 change Stronger performance on the back of above
average wind speeds in Q1 2020
Adj. EBITDA 585 490 +95
t/o non-recurring items - - -
Depreciation -184 -191 +7
Adj. EBIT 401 299 +102
t/o non-recurring items - - -
Outlook 2020
Outlook 2020 vs. FY 2019 pro forma €900 – 1,100m
Gross cash investments1 -316 n.a. n.a.
Normalised weather conditions for the remainder
Gross cash divestments1 +83 n.a. n.a. of the year assumed versus low wind levels in 2019
1Gross cash (di-)investments: Sum of (di-)investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures. | Note: pro forma - new business segments and inclusion of
assets acquired from E.ON for full FY2019.
August 2020 Investor Presentation Page 33Core H1
Onshore Wind/Solar: Solid earnings in H1 on the back of
capacity additions and better weather conditions
Key financials H1 - Onshore Wind/Solar H1 2020 vs. H1 2019 pro forma
pro forma
€ million H1 2020 H1 2019 change Increased capacity in Onshore Wind/Solar, Europe
and US
Adj. EBITDA 273 244 +29
Higher earnings in Europe from above average
t/o non-recurring items - - -
weather conditions in Q1 2020
Depreciation -188 -168 -20
Adj. EBIT 85 76 +9
t/o non-recurring items - - -
Outlook 2020
Outlook 2020 vs. FY 2019 pro forma €500 – 600m
Gross cash investments1 -545 n.a. n.a.
Increased capacity in Onshore Wind/Solar in Europe
Gross cash divestments1 +21 n.a. n.a. and US
Normalised weather conditions for the remainder of
the year assumed versus low wind levels in 2019
Construction delays, mainly at US assets due to
Covid-19
1Gross cash (di-)investments: Sum of (di-)investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures. | Note: pro forma - new business segments and inclusion of
assets acquired from E.ON for full FY2019.
August 2020 Investor Presentation Page 34Core
Hydro/Biomass/Gas: Good H1 performance after a strong Q1
Key financials H1 - Hydro/Biomass/Gas H1 2020 vs. H1 2019 pro forma
pro forma
€ million H1 2020 H1 2019 change Income from GB capacity payments (+€74 million)2
Adj. EBITDA 324 221 +103
t/o non-recurring items - - -
Depreciation -169 -159 -10
Adj. EBIT 155 62 +93
t/o non-recurring items - - -
Outlook 2020
Outlook 2020 vs. FY 2019 pro forma €550 – 650m
Gross cash investments1 -177 n.a. n.a.
FY 2020 GB capacity payments of ~€160 million;
2019 includes one-off payment2 for 2018
of €51 million
Fire at Eemshaven power plant leading to a
temporary stoppage of biomass co-firing
1 Gross cash (di-)investments: Sum of (di-)investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures. | 2 Resumption of GB capacity payments in Q4 2019 after
suspension. Revenues from GB capacity market amounted to €229 million in 2019 and included a one-off payment of €51 million for 2018. | Note: pro forma - new business segments. Former European Power,
including hydro and biomass activities from innogy, excluding German hard coal activities and including 37.9% stake in Kelag.
August 2020 Investor Presentation Page 35Core
Supply & Trading: Strong and robust trading performance in
the first six months of the year
Key financials H1 - Supply & Trading H1 2020 vs. H1 2019 pro forma
pro forma
€ million H1 2020 H1 2019 change Strong trading performance as well as good result
for gas & LNG business; however, earnings
Adj. EBITDA 322 461 -139 contribution below exceptionally high level in the
t/o non-recurring items - - - previous year
Depreciation -22 -20 -2
Adj. EBIT 300 441 -141
t/o non-recurring items - - -
Outlook 2020
Outlook 2020 vs. FY 2019 pro forma €150 – 350m
Gross cash investments1 -30 n.a. n.a.
Exceptionally high earnings contribution in 2019
due to outstanding trading performance and strong
contribution from gas and LNG
• Long-term
t average earnings of ~€250 million,
including stable earnings contribution from gas
storage
1Gross cash (di-)investments: Sum of (di-)investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures. |
Note: pro forma - new business segments. Includes gas storage activities acquired from E.ON for full FY2019.
August 2020 Investor Presentation Page 36Coal/Nuclear: Solid earnings on the strength of a good hedge
performance
Key financials H1 - Coal/Nuclear H1 2020 vs. H1 2019 pro forma
pro forma
€ million H1 2020 H1 2019 change Higher realised generation margin for outright
position
Adj. EBITDA 310 148 +162
t/o non-recurring items - - -
Production plan updated after lignite phaseout
agreement
Depreciation -155 -171 +16
Adj. EBIT 155 -23 +178
t/o non-recurring items - - -
Outlook 2020
Gross cash investments1 -77 n.a. n.a. Outlook 2020 vs. FY 2019 pro forma €500 – 600m
Higher realised generation margin for outright
Hedging outright position2 Volume3 Hedge margin4 position, ~+3 EUR/MWh in 2020
2020 >90% 70-75 TWh ~27 €/MWh
2021e >90% 70-75 TWh ~32 €/MWh Production plan updated after lignite phaseout
2022e >90% 55-60 TWh ~32 €/MWh agreement
2023e >90% 40-45 TWh ~26 €/MWh
Fully hedged Implicit fuel hedge Open position % Hedge ratio
1Gross cash (di-) investments: Sum of (di-) investments in (in-) tangible and financial assets, loans to non-consolidated affiliates and capital measures. | 2 Outright: Lignite and Nuclear. | 3 Financial hedged
volume. | 4 Hedge margin after carbon costs. CO2 position financially hedged until end of 4th compliance period (2030). | Note: pro forma - new business segments. Former division Lignite & Nuclear plus German
hard coal and nuclear minorities for full FY2019.
August 2020 Investor Presentation Page 37Key sensitivities to our planning assumptions for 2020
Driver Segment Type Sensitivity Group impact1
Wind levels Offshore Wind P&L +/- 10% production +/- €150 million
Onshore Wind/Solar P&L +/- 10% production +/- €100 million
Power prices Offshore Wind and Onshore Wind/Solar P&L +/- 10% +/- €60 million2
Main f/x (USD & GBP) RWE Group P&L +/- 10% +/- €125 million
CO2 prices RWE Group P&L +/- €1/t Hedged until 2030
Pension provisions RWE Group Germany B/S +/- 0.1%3 -€150/+€170 million4
RWE Group abroad B/S +/- 0.1%3 -€90/+€100 million4
Nuclear provisions RWE Group B/S +/- 0.1%3 -/+ €50 million
Mining provisions RWE Group B/S +/- 0.1%3 -/+ €140 million
1 All
figures are rounded numbers. P&L figures refer to adjusted EBITDA. | 2 Earnings impact on unhedged position. For 2020 we have already hedged a significant amount of our merchant production volumes. |
3Change in real discount rate (net effect from change in nominal discount rate and escalation rate). | 4 Gross effect of changes in present value of defined benefit obligations. No offsetting effect from
development of plan assets included. | Note: as of end of Nov 2019.
August 2020 Investor Presentation Page 38Your contacts in Investor Relations
Important Links Financial Calendar
• Annual and interim reports & statements • 12 November 2020
http://www.rwe.com/ir/reports ADR programme available Interim statement on the first three quarters of 2020
• Investor and analyst conferences • 16 March 2021
http://www.rwe.com/ir/investor-and-analyst-conferences Further information on our homepage Annual Report for fiscal 2020
• IR presentations & further factbooks RWE shares/ADR • 28 April 2021
http://www.rwe.com/ir/presentations Annual General Meeting
• IR videos Contact for ADR-holders at BNY Mellon
shrrelations@cpushareownerservices.com • 03 May 2021
http://www.rwe.com/ir/videos
+1 201 680-6255 (outside from the US) Dividend payment
• Consensus of analysts’ estimates
1-888-269-2377 (within the US) • 12 May 2021
http://www.rwe.com/ir/consensus-estimates
Interim statement on the first quarter of 2021
Contacts for Institutional Investors & Analysts
• Thomas Denny ( Head of IR ) • Jérôme Hördemann • Lenka Zikmundova
Tel. +49 201 5179-2346 Tel. +49 201 5179-3119 Tel. +49 201 5179-3116
thomas.denny@rwe.com jerome.hoerdemann@rwe.com lenka.zikmundova@rwe.com
• Martin Vahlbrock • Susanne Lange
Tel.: +49 201 5179-3117 Tel. +49 201 5179-3120
martin.vahlbrock@rwe.com susanne.lange@rwe.com
Contact for Private Shareholders
• Dr. Burkhard Pahnke • Dr. Holger Perlwitz • Charline Heßling
Tel.: +49 201 5179-3118 Tel. +49 201 5179-5243 Tel. +49 201 5179-3112
burkhard.pahnke@rwe.com holger.perlwitz@rwe.com charline.hessling@rwe.com
August 2020 Investor Presentation Page 39You can also read
