RWE Investor Presentation · 2020. 12. 11. · Dec 2020 Investor Presentation Page 7 Ambitious...

Investor PresentationAs of May 2021

Investor PresentationMay 2021

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.

Disclaimer

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.

May 2021 Investor Presentation


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

Creating value in the renewable energy worldInvestment highlights


Note: Pro rata installed capacity. Figures as of 31 Dec 2020.

We are ideally positioned for the new energy world

Global commodity trading & commercial asset optimisation

Global analyst platformis key to our success

Commodity solutions for

GW in hydro, biomass andgas plants

Thereof GWpumped storage/batteries

bcm of gas storage

Strong wind and solar businessExperienced operatorof flexible assets Leading commercial platform

GW installedWind/Solar capacity

GW installed capacity at Wind/Solar by

GW develop-ment pipeline blue chip

customers

Wind/Solar growth ambitions for 2020 – 2022


1 Calculated for generation portfolio of core business. | Note: Figures for FY 2020.

Business model fully aligned with our strategic focuson the energy transition

Supply& Trading

Onshorewind/Solar

Core Coal/Nuclear

• Trading/origination• Gas & LNG• Commodity

solutions• Energy Transition

Investments• Gas storage

business

• Onshore and solar operations in • Europe & APAC• Americas

Offshorewind

• Global offshore activities

Hydro/Biomass/Gas

• Hydro, biomass and gas plants in Germany, UK, Netherlands

• Hydrogen projects• Kelag stake

• German lignite operations; mines and plants

• German hard coal plants

• German nuclear power plants

• Holding in Dutch EPZ (nuclear)

Carbonfactor1

g/kWhof capex complywith proposed criteriaof EU taxonomy

%

average net growth p.a.

GWnet capex planfor 2020 – 2022

bn


1 Pro rata, excluding storage. | 2 Adj. EBITDA restated. | 3 Including Feed-in tariffs (FiTs), contracts for difference (CfDs), fixed certificates and PPAs/Tax credits; as of 31 Dec 2019. | 4 Includes assets in operation and under construction with CfDs/FiTs, fixed certificates, PPAs/Tax credits; as of 31 Dec 2019. | Note: Figures as of 31 Dec 2020. Rounding differences may occur.

Powerful position in wind and solar

Installed capacity by technology1 Installed capacity per country1 Wind/Solar adj. EBITDA 20202

25%

73%

Offshore

Onshore

2%

Solar

9.4 GW 9.4 GW

Increasing capacity

GWProjects under construction

Offshore Wind

Onshore Wind/ Solar Americas

Onshore Wind/ Solar Europe & APAC

Regulated or secured3

Years weighted average remaining contracted tenor4

High level of earnings stability

15%

21%43%

Germany

UK

3%Netherlands

PolandSpainItaly

US

ROW

4%

4%

5%5%

67%

24%

9%

€1.6 bn

of core adj. EBITDA


Note: Development pipeline of 34 GW excluding central tender/lease auctions. Figures as of 31 Dec 2020. Events after this date, namely the 3GW award from UKR4 leases is reflected in the numbers. | Rounding differences may occur.

Renewable energy growth underpinned by growing development pipeline

Development pipeline per technology and region, GW pro rata

~8.0

Onshore/SolarEurope/APAC

Onshore/SolarAmericas

2.86.1

6.8 ~15.6

Americas APAC

Additional central tender/

lease auctionEurope

Delta Nordsee 1&2 0.5 GW

Nordsee Two&Three 0.1 GW

UKR4 lease projects 3.0 GW

Sofia 1.4 GW

Rampion 2 0.6 GW

Awel y Môr 0.3 GW

North Falls 0.3 GW

Five Estuaries 0.1 GW

Dublin Array 0.5 GW

Sharco II & V 1.0 GW

FEW Baltic II 0.4 GW

Södra Midsjöbanken 1.6 GW

Dunkerque 0.2 GW

Chu Feng 0.4 GW

10.2 GW

Offshore

7.0

0.9 0.1

>20GW

10.2

13.1

7.6

2.9

~34 GW

Offshore

Onshore Storage

Solar

FID taken in Q1 2021


1 Current expected timelines. | Note: capacity mentioned in pro rata.

Decisive year for offshore in 2021: all systems go for construction, development and preparation for new projects

Under con-struction/Close toFID

Key Develop-mentactivites

Central tender & lease auctionsin 20211

• At Triton Knoll (UK) first turbines safely & successfully installed and first power generated, exp. COD beginning of 2022

• Pre-construction work at Kaskasi (DE) on track, exp. COD end of 2022• FID for 1.4GW Sofia (UK) taken in Mar 2021

• Awarded 3GW in UKR4 seabed auction, project development started• Grid Connection Agreement secured for FEW Baltic II (PL), 350MW

qualified for direct notification and CfD awarded in April 2021• Dublin Array (IE) in preparation for CfD auction late 2021/early

2022, project size now up to 0.9 GW – RWE pro rata share 0.5 GW• Chu Feng (TW) up to 0.4 GW – preparing for participation in grid

allocation round

• Numerous central tender and lease auctions expected in the off-shore market in 2021, e.g.:• Europe: Germany, Denmark, France, Netherlands, UK (Scotwind)• North America: NY Bight (East Coast), California (West Coast)• Asia-Pacific: Japan


In 2021 more than 20 onshore, solar and storage projects around the world will contribute ~2GW to RWE’s growth

1 Raymond West: After construction RWE share 25% due to already announced farm-downs. | Note: As of March 2021. | A. Gross Capacity (MW) | B. RWE share | C. RWE capacity, pro rata MW.

Limondale

A. 249B. 100%C. 249

Eekerpolder

A. 63B. 100%C. 63

Groningen Sea Port

A. 9B. 100%C. 9

Scioto Ridge

A. 250B. 100%C. 250

Jüchen

A. 27B. 51%C. 14

Dolice

A. 48B. 100%C. 48

Hästkullen

A. 307B. 20%C. 61

Kerkrade

A. 10B. 100%C. 10

Oostpolderdijk

A. 8B. 100%C. 8

Nowy Staw 3

A. 12B. 100%C. 12

Alcamo II

A. 14B. 100%C. 14

Oostpolder

A. 36B. 100%C. 36

Stephenstown

A. 9B. 100%C. 9

Hickory Park

A. 40B. 100%C. 40

Les Pierrots

A. 26B. 100%C. 26

Björn-landshöjden

A. 168B. 20%C. 34

Panther Creek III repowering

A. 16B. 100%C. 16

Cassadaga

A. 126B. 100%C. 126

Raymond West1

A. 240B. 100%C. 240

Total growth projects~1.5 GW

Total growth projects~0.5 GW

Total growth projects249 MW

AmerCentrale

A. 2B. 100%C. 2

Hickory Park

A. 196B. 100%C. 196

Zukowice

A. 33B. 100%C. 33

Blackjack Creek

A. 240B. 100%C. 240

New

El Algodon Alto

A. 200B. 100%C. 200

New


Our engagement in hydrogen continues to take shape and we believe in the central role of H2 in the energy transition

Together with partners, we are active in >30 projects and along the entire renewables and H2 value chain

AquaVentusHeligoland

South Wales Industrial ClusterMilford Haven

Eemshydrogen

Eemshaven

NortH2

North of the Netherlands

FUREC

Prov. Limburg

GET H2

Lingen

H2 BrunsbüttelBrunsbuettel

RostockRostock

HySupplyBerlin

Find out more here: http://www.rwe.com/hydrogenH2• Dedicated Board member for

H2 at RWE Generation defining and implementing RWE’sH2 strategy

• Clean H2 is key to the energy transition achieving national and European climate targets by 2050

• Creating an H2 economy is a long-term endeavour and requires regulatory and financial support. We actively participate in the discussion

• Demand for green H2 will drive global growth of renewables

http://www.rwe.com/hydrogen


Our energy for a sustainable life – continuous focus on ESG

• Hard coal:

• Ibbenbüren and Westfalen hard coal plants successful in closing auction; moved into grid security reserve until final shut down in summer 2021

• We will no longer run any own hard coal plants in Germany

• Lignite

• Public-law contract regarding coal exit signed

• Niederaußem D under the German coal exit law closed

• Agreement with unions on socially acceptable coal exit for employees reached

• High quality renaturation of former mining areas provides opportunities for communities

• Bloomberg Gender-Equality Index: above average score for the energy sector in the “Inclusive Culture” category

• Share of coal-fired generation and other coal products of total RWE Group revenues was 23% for FY 2020

• Strengthening of governance at the last AGM in April:

• Introduction of shorter election cycles and staggered board system for shareholder elected Supervisory Board Member

• Management Board remuneration scheme including ESG targets, share ownership guideline and clawback

• Renewal of the capital authorisation

Continued reduction of coal capacity

20232019 2020 2030 2038

0.0 GW

12.8 GW 10.8 GW ~8 GW<4.0 GW

ca. -70%


1 2019 is the base year for our Science-based Target. | Note: Figures in million tonnes CO2-equivalent. | For more information on our carbon footprint, please visit www.rwe.com/emissions

RWE‘s way to Net Zero in 2040 is fully aligned with Paris Agreement to keep global warming to well-below 2°C

Target to achieve net zero by 2040 includes all direct and indirect GHG emissions (Scope 1, 2 and 3)

Proven track record of carbonemission reductions with -62% power plant emissions in 2020 vs. 2012

Fully supportive and alignedwith Paris Agreement

RWE engaged in leading sustainability initiatives:

Scope 3Upstream and down-stream indirect GHG emissions

22.3

Scope 2Operation-related indirect GHG emissions from the generation of acquired and consumed electricity

Scope 1Operation-related direct GHG emissions

0.6

89.8Scope1 & 2

Scope 3-30%

absolute

-50%specific:

CO2e per kWh

WELL BELOW 2° C

Our 2030 climatetargets are

20191 2030 2040

http://www.rwe.com/emissions


1 RWE Group from May 1, 2021. | 2 Science Based Targets. I 3 ESG Risk Rating Score.

Our 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

• Recultivationprogramme with focus on biodiversity

• Increase in ecology in renaturalisedmining areas

• 38% women on management board1

• Part of 2021 Bloomberg Gender Equality Index; with above average rating for inclusive culture

• Leading operator of wind and solar with > 9 GW installed capacity

• Highly efficient and flexible power plant portfolio

• Strong employer with workforce of ~20,000 people

• Regional support for structural change and energy transition

• Focus on hydrogenand storage technologies to support a carbon-neutral transition for the future

• Strict compliance requirements with RWE’s Code of Conduct

• Member of Bettercoal to promote standards in supply chain

• CO2 reduction by 62 % since 2012

• 2030 emissions targets recognised by the SBT2

Initiative

• Target to be carbon neutral by 2040


1 Management target.

Outlook for FY 2021

Adj. EBIT

Core adj. EBITDA

Adj. Minorities

Adj. EBITDA RWE Group

Adj. Financial result

Adj. Depreciation

Adj. Tax

Adj. Net income

1,800 – 2,200

2,650 – 3,050

~-1,500

750 – 1,100

15%

~-150

~-100

1,150 – 1,550

Outlook FY2021, € million

Dividend

• Management target of €0.9 per share for FY2021

Leverage factor

• Below 3.0 net debt/core adj. EBITDA

2021

€0.90

2019

€0.80

2020

€0.851


1 EBITDA covers annual capex.

Guidance from CMD for FY 2022 confirmed

Core adj. EBITDA

Adj. Minorities

Adj. Tax

Adj. EBITDA RWE Group

Adj. Depreciation

Adj. EBIT

Adj. Net income

Adj. Financial result

2,550 – 2,850

3,100 – 3,400

~-1,600

1,050 – 1,350

15%

~-150

~-150

1,500 – 1,800

New: Updated for Rampion effect

✓

✓

✓

✓

✓

✓

✓

Offshore Wind

• Support expiry/Transition phase started at German windfarms Nordsee Ost and Amrumbank in 2022 resp. 2023 - from high feed in tariff (194 €/MWh) to intermediate level (154 €/MWh) until final floor price (39 €/MWh):~-€320m in 2023 - 2025

Coal/Nuclear

• Strong earnings decline after nuclear and lignite capacity closures, partly offset by efficiency improvements

• EBITDA of €0 – 200m p.a. from 2023 onwards

• Lignite operations on average cash flow positive1

Adj. Tax RWE Group

• Due to announcement by UK Government regarding the UK corporate tax rate, increase in RWE Group’s general tax rate applied for adj. net income expected in the mid-term

Outlook FY2022, € million Relevant aspects on mid-term earnings outlook


Overview Outlook divisions

Outlook FY2021, € million Outlook FY2022, € million

Offshore Wind

Onshore Wind/Solar

Hydro/Biomass/Gas

Supply & Trading

Other/Consolidation

Coal/Nuclear

Offshore Wind

Onshore Wind/Solar

Hydro/Biomass/Gas

Supply & Trading

Other/Consolidation

Coal/Nuclear

Upper half of range

Lower half of range

Adj. EBITDA

Core adj. EBITDA

Adj. EBITDA RWE Group Adj. EBITDA RWE Group

Core adj. EBITDA

Adj. EBITDA

1,050 – 1,250

50 – 250

500 – 600

150 – 350

1,800 – 2,200

800 – 900

2,650 – 3,050 3,100 – 3,400

550 – 650

2,550 – 2,850

150 – 350

500 – 600

650 – 750

1,150 – 1,350

~-100~-100

Strong & important progress on long-term growthMay 2021, Q1 Earnings call

Q1 2021Earnings & Operations



• Adj. EBITDA decreased to €0.9bn mainly due to the one-off from the unprecedented Texas cold snap

• FY 2021 outlook and dividend target of €0.90 per share confirmed

• Net debt decreased significantly to €2.8 bn at the end of March

• Positive credit rating reviews: Fitch and Moody’s, have both upgraded their rating to BBB+ and Baa2 respectively with a stable outlook

• FID taken on 1.4 GW UK Sofia offshore wind farm, which is our largest offshore project in the world to date

• CfD awarded for 350 MW F.E.W. Baltic II project – our first Polish offshore wind farm

• Our target of being carbon neutral by 2040 extended and now includes scope 1 – 3 emissions

• More than 90% of capex comply with the proposed green investment criteria of the EU taxonomy

Q1 2021 – strong & important progress on long-term growth


Note: restated adj. EBITDA for 2020 according to change in the accounting for tax benefits as of 1 Jan 2021

Good operational Q1 performance besides setback in the wind/solar business

• Offshore Wind earnings down compared to very strong previous year due to below normal wind conditions

• Onshore Wind/Solar earnings decreased significantly on the back of the negative one-off from the Texas cold snap in Feb 2021

• Earnings at Hydro/Biomass/Gas remained stableat previous year’s level

• High earnings at Supply & Trading slightly above strong previous year

Adj. EBITDA for RWE Group, incl. Coal/Nuclear amounts to 883 (-33%) at Q1 2021

Core adj. EBITDA Q1 2021 vs. Q1 2020, € million

297

213

431

189221

-119

217

170

Onshore Wind/Solar

Supply & Trading

-25

Core adj EBITDA 2021

Core adj. EBITDA 2020

3

Hydro/Biomass/Gas

Offshore Wind

Others/Consolidation

555

1,042-47%


Well on course to meet 2022 growth target with 3.7GW currently under construction

Capacity development Wind/Solar, as of 31 Mar 2021

Net changesInstalled capacity

31 Dec 20

-0.5

Installed capacity

31 Mar 21

0.4

COD2022

2.01.7

COD2021

-0.19.4

Changes from transactions

Residual target

Target2022

1.4

COD after 2022

8.9

13.0

Projects under construction/FID

1.5 Onshore0.5 Solar0.05 Battery

0.8 Offshore0.1 Onshore0.5 Solar0.2 Battery

GW pro rata

Note: Information is in pro rata. As of 31 Mar 2021. | Rounding differences may occur.

• 0.5 GW of capacity reductions due to 75% farm-down at Stella, Cranell and Raymond East onshore wind farms. Closing and farm-down at Raymond West is expected in Q2

• FID’s of ~0.7 GW in solar with co-located storage and onshore wind taken, mainly in the US • Integration of remaining 20% stake in the UK offshore wind farm Rampion with closing as of 1 Apr 2021

>

• Addition: Rampion stake of 80 MW• Farm-down: Raymond West

1.4 Offshore

Projects under construction/FID

Sofia


Great progress in the UK offshore portfolio - FID taken for1.4GW Sofia project and 3GW seabed on Dogger Bank awarded

Under development

Location Shallow central area of the North Sea known as Dogger Bank

Water depth 20 – 35m

Capacity ~ 1.4 GW (100 turbines, each 14 MW Siemens Gamesa)

RWE pro rata share 100%

Load Factor ~ 50%

Capex ~ £3bn (incl. OFTO)

Subsidy regime 2-sided CfD with a strike price of 39.65 £/MWh1 for 15 years

FID Q1 2021

Construction Onshore start in Q2 2021, offshore start in 2023

Expected COD Project fully operational by end of 2026

Sofia – our largest offshore development project

Key figures

Timeline

UK Round 4 Lease Auction

In operations

Under construction

Location Shallow central area of the North Sea known as Dogger Bank

Water depth 15 – 35m

Capacity 3.0 GW (2 x 1.5 GW)

RWE pro rata share 100%

Awarded Q1 2021

1 2012 prices, linked with CPI.


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.

Adj. net income as expected and in line with the performance of adj. EBITDA

• Adj. EBITDA excludes non-operating result

• Financial result mainly adjusted for tax interests from tax refunds unrelated to the accounting period, among other things

• Adjustments of tax refer to a general tax rate of 15% at RWE Group1

• Adj. minority interest stem from fully consolidated wind/solar projects

Adj. net income, € million

883

340

-335

-130

548

-63

-15

Adj. EBITDAQ1 2021

Adj. depreciation

Adj. financial result

Adj. EBIT

Adj. tax

Adj. minority interest

Adj. net incomeQ1 2021

Q1 2021

967

-357

-233

-110

-10

614

Q1 2020

1,324


1 Excludes nuclear provisions since utilisation is not net debt effective and will be refinanced via financial debt.

Adj. operating cash flow impacted by seasonal effects in working capital

• Changes in provisions/(Non-) Cash items among others driven by book gains from the farm-down of Texas wind farms as well as legacy and restructuring provisions

• Changes in operating working capital mainly due to negative seasonal effects from purchase of CO2 certificates. Partly compensated by reduction of gas inventories and decrease of accruals

• Cash financial result mainly impacted by interest payments

• Cash taxes driven by income taxes in the UK

Reconciliation to adj. operating cash flow, € millionQ1 2021

883

-55

Adj. operatingcash flow

Cashfinancial

result

Adj. EBITDA

Changes inprovisions/

(Non-) Cash

items1

-396

-316

Changes in

operatingworking capital

-118-108

Cashtaxes


1 Includes pension and wind provisions but excludes nuclear provisions as they are not part of adj. operating cash flow. Furthermore, CTA allocation of €1.1bn with no effect on net debt. Payment is offset by the decrease in pension provisions. | Note: Rounding differences may occur.

Net debt decreased due to timing effects from hedging activities and higher discount rates for pension liabilities

Development of net debt, € billionQ1 2021

• ‘Other changes in net financial debt’ include timing effects from hedging such as variation margins and CO2 provisions of €1.5bn

• ‘Changes in provisions’ driven by decrease of pension provisions due to higher discount rates and good performance of plan assets

Net debt31 Dec 20

Other changes in net financial debt

0.70.1

Adj. operating cash flow

-1.7

Changes in provisions1

Net cash investments

4.4

-0.7

Net debt31 Mar 21

2.8

Creating value in therenewable energy worldMarch 2020, Capital Market Day


Strategy & Financial UpdateMarch 2020 - CMD

Significant investments to grow wind & solar capacityto >13 GW by 2022

RWE’s core capex programme 2020 – 2022 Gross growth capex by region and technology

Offshore Wind

Onshore Wind/SolarAmericas

Onshore Wind/SolarEurope & APAC

Netgrowth capex

Assetrotation &

divestments

Grossgrowthcapex

Maintenancein core

business

~5

~0.5

~8-9~3-4

~45%

~30%

~25% Germany

UK

Other Europe

Americas

APAC

Offshorewind

Onshorewind

Solar &storage

~10%

~30%

~5%

<5%

<5%

~10%

~20%

<5%

~ 5%

~10%

<5%

Remaining pipeline ~1/3

Committed(FID taken)

~1/3


€ bn

Close to FID ~1/3Note: Data as of CMD 2020.


Note: Data as of CMD 2020.

Value added by attractive returns in the renewables business

IRR requirements for wind/solar projects

• Investment decisions based on strict hurdle rate approach with project IRR typically exceeding base renewables WACC by 100 to 300 bps

• Hurdle rates include risk premia depending on project risk profile (technology, regulatory and remuneration risk)

• Project returns do not include disposal gains, costs for management support and new markets scouting

• Evaluation of investment decisions include pay back profiles and sensitivity analysis

• Post completion review to monitor investment performance

Offshore Wind

Mature markets

New markets

Onshore Wind/Solar

Europe

US

New markets

5.5% 8.5%

7.0% 10.0%

4.5% 8.0%

5.5% 8.0%

6.5% 9.5%

May 2021

Solid capital structure provides financial flexibility forcore business

Investor Presentation

Net debt(€ million)

31 Dec 2020

Financial assets 11,798

Financial liabilities(incl. hybrid capital adjustment)

4,951

Net financial assets(incl. hybrid capital adjustment)

6,847

Provisions for pensions and similar obligations 3,692

Provisions for nuclear waste management 6,451

Provisions for dismantling wind farms 1,136

Net debt 4,432

1 Net debt/core adj. EBITDA (reported). | 2 As of April 2021.

• Net debt of €4.4 bn after financial ring-fencing of coal phaseout liabilities

• Leverage factor (net debt/core adj. EBITDA)

• 2020 leverage factor1

• Targeted leverage factor of ≤3.0xfor 2020 - 2022

• Investment grade rating2

• Fitch: BBB+ with stable outlook

• Moody’s: Baa2 with stable outlook

Commitment to financially ring-fence coal phaseout liabilities with financial portfolio

• Provisions for mining liabilities reflecting accelerated coal phaseout total €4.8 bn

• Agreement with German government includes compensation payment of €2.6 bn payable over 15 annual instalments

• Commitment to back amount with adequate financial portfolio. Financial portfolio currently consists of

- Receivables against German government

- 15% stake in E.ON (income from financial portfolio recognised in ‘financial result’)

4.8

E.ON stake

Receivablesagainst GERgovernment

Financialportfolio

Miningprovisions

31 Dec 2020

2.6


€ bn

Funding of coal phaseout liabilities

Appendix


1 Gross cash (di-)investments: Sum of (di-)investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures.


Core

Offshore Wind: Earnings down due to very high wind conditions last year and below normal wind speeds this year

Adj. EBITDA

t/o non-recurring items

Depreciation

Adj. EBIT


Gross cash investments1

297

-94

203

-

-724

431

-

-95

336

-

-159

-134

-

1

-133

-

-565

€ million Q1 2021 change

-

Key financials Q1 - Offshore Wind

Very high wind speeds in Q1 2020

Below normal wind speeds in Q1 2021

Q1 2021 vs. Q1 2020

Income from Triton Knoll commissioning phase

Consolidation effect from 20% increase of Rampion shareholding to 50.1%, closing as of 1 Apr 2021

Normalised weather conditions for the rest of the year assumed

Increased development expenses for mid- to long-term growth

Outlook 2021 vs. FY 2020

Q1 2020

Gross cash divestments1 +5 +13 -8

Outlook 2021€1,050 – 1,250m


Core

Onshore Wind/Solar: Earnings far below previous year due to one-off from Texas’ unprecedented extreme cold snap

Adj. EBITDA


Depreciation

Adj. EBIT



-119

-95

-214

-296

-257

221

-

-93

128

-

-233

-340

-296

-2

-342

-296

-24

€ million change

-296

Key financials Q1 - Onshore Wind/Solar

Very high wind speeds in Q1 2020

Below normal wind speeds in Q1 2021 in northern Europe

Increased capacity partly offset by Texas farm-down

Q1 2021 vs. Q1 2020

Increased capacity in Onshore Wind/Solar in the US and Europe

Book gain from 75% farm-down at Texas onshore portfolio


Gross cash divestments1 +306 +17 +288

Outlook 2021€50 – 250m

1 Gross cash (di-)investments: Sum of (di-)investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures. | 2 Book gain for three out of four wind farms. Outstanding farm-down at Raymond West expected with closing in Q2. | Note: restated figures for 2020 due to change in the accounting for tax benefits as of 1 Jan 2021.

One-off from Texas’ extreme cold snap in Feb 2021

Increased development expenses for mid-to long-term growth

Q1 2021

Negative one-off from Texas cold snap of ~-€400 million

Book gain from 75% farm-down of wind farms in Texas portfolio2

Adj. EBITDA significantly impacted by non-recurring items:

Q1 2020


Core

Hydro/Biomass/Gas: Sound earnings on the back of higher income from capacity payments

Adj. EBITDA


Depreciation

Adj. EBIT



213

-72

141

-

-20

217

-

-82

135

-

-155

-4

-

10

6

-

135

€ million change

-

Key financials Q1 - Hydro/Biomass/Gas

Higher income from GB capacity payments

Absence of income from Georgia Biomass due to disposalin H1 2020

Q1 2021 vs. Q1 2020

Return to a normalised earnings level from the day-to-day optimisation of our power plant dispatch

Absence of income from Georgia Biomass due to disposalin H1 2020

Recovery from fire in Eemshaven

Outlook 2021 vs. FY 2020Outlook 2021€500 – 600m

1 Gross cash investments: Sum of investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures. | Note: including 37.9% stake in Kelag.

Q1 2021 Q1 2020


Core

Supply & Trading: Very strong trading performance leads to earnings on a par with previous year’s high level

Adj. EBITDA


Depreciation

Adj. EBIT



189

-11

178

-

-13

170

-

-10

160

-

-21

19

-

-1

18

-

8

€ million change

-

Key financials Q1 - Supply & Trading

Very strong trading performance partly offset by lower performance of Gas & LNG business

Q1 2021 vs. Q1 2020

Return to normalised earnings level after very high earnings contribution in 2020 due to very strong trading performance and strong contribution from gas & LNG


• t

Outlook 2021€150 – 350m

Long-term average earnings of ~€250 million

1 Gross cash investments: Sum of investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures.

Q1 2021 Q1 2020


Coal/Nuclear: Solid earnings on the strength of higher realised hedged generation margins

Q1 2021 vs. Q1 2020

Higher realised hedged generation margins

Costs associated with the German coal phaseout


Key financials Q1 - Coal/Nuclear

1 Gross cash investments: Sum of investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures.

Outlook 2021€800 – 900m

Adj. EBITDA


Depreciation

Adj. EBIT



328

-63

265

-

-41

282

-

-76

206

-

-39

46

-

13

59

-

-2

€ million Q1 2021 change

-

Q1 2020 Higher realised hedged generation margins

Costs associated with the German coal phaseout

Key sensitivities to our planning assumptions for FY2021


Driver Segment Type Sensitivity Group impact1

Wind levels Offshore Wind P&L +/- 10% production +/- €160 million

CO2 prices RWE Group P&L +/- €1/t Hedged until 2030

Pension provisions RWE Group Germany B/S +/- 0.1%3 -€160/+€180 million4

Nuclear provisions RWE Group B/S +/- 0.1%3 -/+ €45 million

Mining provisions RWE Group B/S +/- 0.1%3 -/+ €140 million

RWE Group abroad B/S +/- 0.1%3 -€100/+€110 million4

1 All figures are rounded numbers. P&L figures refer to adjusted EBITDA. | 2 Earnings impact on merchant position before hedging. For 2021 we have already hedged a significant amount of our merchant production volumes. | 3 Change 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 Dec 2020.

Onshore Wind/Solar P&L +/- 10% production +/- €100 million

Power prices Offshore Wind and Onshore Wind/Solar P&L +/- 10% +/- €70 million2

Main f/x (USD & GBP) RWE Group P&L +/- 10% +/- €130 million

Your contacts in Investor Relations


Financial CalendarImportant Links

Contacts for Institutional Investors & Analysts

• Annual and interim reports & statements

• Investor and analyst conferences

• IR presentations & further factbooks

• IR videos

• Consensus of analysts’ estimates

ADR programme available

Further information on our homepage RWE shares/ADR

Contact for ADR-holders at BNY [email protected]+1 201 680-6255 (outside from the US)1-888-269-2377 (within the US)

• 12 August 2021Interim report on the first half of 2021

• 11 November 2021Interim statement on the first three quarters of 2021

• 15 March 2022Annual Report for fiscal 2021

• 28 April 2022Annual General Meeting

• 12 May 2022Interim statement on the first quarter of 2022

• Thomas Denny ( Head of IR )Tel. +49 201 [email protected]

• Susanne LangeTel.: +49 201 [email protected]

• Dr. Burkhard PahnkeTel.: +49 201 [email protected]

• Charline HeßlingTel. +49 201 [email protected]

• Lenka ZikmundovaTel. +49 201 [email protected]

• Dr. Holger PerlwitzTel. +49 201 [email protected]

• Jérôme HördemannTel. +49 201 [email protected]

http://www.rwe.com/ir/reports

http://www.rwe.com/ir/investor-and-analyst-conferences

http://www.rwe.com/ir/presentations

http://www.rwe.com/ir/videos

http://www.rwe.com/ir/consensus-estimates

https://www.group.rwe/en/investor-relations/the-rwe-share

mailto:[email protected]








RWE Investor Presentation · 2020. 12. 11. · Dec 2020 Investor Presentation Page 7 Ambitious...

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Transcript of RWE Investor Presentation · 2020. 12. 11. · Dec 2020 Investor Presentation Page 7 Ambitious...