DOCSLIB.ORG

Check Against Delivery. Ladies and Gentlemen, Good Morning to You All. in the Name of the Entire RWE Executive Board, Welcome T

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Check Against Delivery. Ladies and Gentlemen, Good Morning to You All. in the Name of the Entire RWE Executive Board, Welcome T Dr. Jürgen Großmann / Dr. Rolf Pohlig / Peter Terium Fiscal 2011 Press Conference Essen, 6 March 2012, 10:00 a.m. CET / 09:00 a.m. GMT Check against delivery. Jürgen Großmann Chart 1 Ladies and Gentlemen, Good morning to you all. In the name of the entire RWE Executive Board, welcome to our Press Conference 2012 on Fiscal 2011. They say that actions speak louder than words. In the foyer, you can get an impression of what action we are taking. Have a look at our “Smart Country” pilot project, for instance, to get a glimpse of how our future distribution system will incorporate renewables. Some of our competitors call this kind of thing “energy industry transformation projects”. At RWE we don’t. We didn’t need the decision on energy industry 2 transformation made in 2011 to make us more sustainable; we have already been working towards it for five years now. But don’t worry. Although this is my last fiscal press conference at RWE, I am not intending to recapitulate all the details of my time here. As in previous years, I will focus on the business performance of the past year, followed by which Rolf Pohlig will give you an overview of the figures. After that, Peter Terium will lay out how RWE intends to build on this platform in the future. As in the past, Leo Birnbaum, Alwin Fitting and Rolf Martin Schmitz, the other members of the Board, will then be available to take your questions. Ladies and Gentlemen, On 1 September, Peter Terium was appointed to be my deputy, as a new member of the RWE Executive Board. On 1 July of this year, he will take over as Chairman of the Group. Peter Terium and his future deputy, Rolf Martin Schmitz, stand for professional excellence and for 3 continuity of governance and strategy. That sets a signal – both internally and externally. All of us, by which I mean the entire RWE Executive Board, wish Peter every success and the necessary good luck to manage his challenging new role. I am very confident of his abilities. After all, Peter Terium has already helped shape the growth and future of the Group in his other key roles within the company. One prime example is how he managed and integrated our Dutch subsidiary Essent into the RWE Group after its acquisition. All the best Peter! A few days ago, on 28 February 2012, our Supervisory Board made a further personnel decision: Bernhard Guenther was appointed a new member of the Executive Board of RWE AG, with effect from 1 July 2012. Bernhard Guenther will succeed Rolf Pohlig as Chief Financial Officer (CFO) of RWE AG on 1 January 2013. We are happy to have been able to fill this important position on the RWE Executive Board with an executive from within our own ranks. Bernhard Guenther has been with RWE since 1999 and is currently CFO of RWE Supply & Trading. From July, Bernhard Guenther will begin the gradual process of assuming the finance portfolio of Rolf Pohlig, who will complete his active service for RWE at the age of sixty, on 31 December 2012. 4 Ladies and Gentlemen, 2011 was a difficult business year for us, with some Chart 2 significant earnings shortfalls. The operating result fell by 24% to €5.8 billion. EBITDA decreased by 18%. Recurrent net income, which as you know is the basis for determining our dividend, declined by 34% to €2.5 billion. On that basis, we will be proposing a dividend of €2 per share at the Annual General Meeting. The dividend payout ratio will be 50% of recurrent net income. The main reasons for this at first glance less than pleasing performance are as follows: 1. Adverse gas supply contracts due to negative gas- to-oil spreads. Spot market prices for gas have been well below the oil-indexed gas prices since 2009. We took remedial action promptly to renegotiate terms with our gas suppliers and we are confident of coming up with some good solutions. But it is a lengthy process. 2. Declining margins in electricity generation, because electricity prices have not risen to the same extent as prices for coal and oil. A key reason for this is the huge expansion of photovoltaic 5 plants, which usually only feed power into the grid over the midday period. Hard coal and gas-fired power stations then have to take a back seat. That may sound like a good thing. But it is actually a real dilemma. For the very same plants have to remain available at all times to ensure security of supply – even when they can earn nothing. No one can afford that for long. 3. The accelerated exit from nuclear power. The politically determined “end” to our Biblis nuclear power station had a negative impact on our operating result of €1.3 billion in total, including nuclear fuel taxes. Naturally we would have preferred to post a better result. But even after the year we had in 2011, RWE is no basket case. We achieved an operating result of €5.8 billion last year. How many companies can claim to have done that? Despite such a difficult year, we have still emerged as one of the “Top 10” German industrial companies – based on our net income. Because we do not respond to financial burdens with inactivity. We do everything in our power to overcome them. In order to strengthen our financial power, and 6 keep our growth prospects open, we have put together a whole package of measures. Chart 3 We have refined the divestment programme we announced in 2011 and have already implemented part of it. Our top priority is to maintain our A-rating. At an international level, this is a benchmark for a company like RWE. The sale of Thyssengas, divestment of nearly 75% of transmission system operator Amprion and the sale of our shares in the Rostock hard-coal-fired power station (24.6%) are all complete. Only a few days ago, at the end of February, we reached an agreement on the sale of around 19 percentage points of our 69% share in VSE. The purchasers are the Saarland municipal utilities and the Saarland state. Our priority is to sell activities that, over the longer term, consume more cash than they deliver. Amongst other things, this includes some RWE Dea projects designed to expand its upstream position. RWE Dea itself is not up for sale. The plan is to raise our gas and oil production to over 40 million barrels of oil equivalent in 2014. The operating result of RWE Dea should be in the order of €800 million by then. In the medium term, we intend to 7 double our annual oil and gas production to 70 million barrels of oil equivalent. However, as a result of the impending divestments, we will probably not achieve that target now until the end of this decade. After the VSE transaction, some German sales and network activities such as Süwag are on our divestment list. In addition, we are considering the sale of some coal and gas power plant capacity. In addition, we are prepared to part with our share of Berlinwasser. We also intend to dispose of the Czech gas transmission system operator NET4GAS. Our entrepreneurial scope here has been significantly reduced due to unbundling, as in the case of Amprion. We now aim to generate sales proceeds of up to €7 billion from the divestments undertaken. This is good news, because, just six months ago, we felt we needed to make more substantial divestments. This was made possible by concentrating on selling assets that will result in the loss of fewer potential earnings. 8 We went ahead with our move to increase capital, despite the difficult market environment. With proceeds of €2.1 billion, this was one of the largest capital increases achieved by any European industrial company in recent years. In addition, we also issued a second hybrid bond. As far as market conditions allow, we intend to issue some further hybrid bonds in due course. Chart 4 Our aim for 2011 was to improve earnings by €900 million compared to the level of 2006 and we exceeded that target. Last year we took two steps to raise the target for the year 2012 from the original figure of €1.2 to €1.5 billion compared to 2006. The Board will build on that further. More about that in a moment from Peter Terium. Finally, we are streamlining our investment budget. By spending €6.4 billion on property, plant and equipment in both 2010 and 2011, we reached the peak of our record capital expenditure programme. We now plan to invest about €16 billion in the three- year period ending 2014. About half of the funds are earmarked for growth projects. We want to continue to grow with RWE Innogy and RWE Dea but we also want to achieve further growth in Central Eastern and South Eastern Europe, where we see potential in Poland and Turkey in particular. 9 In the past few years, we have deliberately spent more than we have earned in cash flow. In return, our power plant portfolio is now one of the most modern in Europe and we have made significant strides with renewables. When our new-build power plant programme is completed in 2015 at the latest, our investments will no longer exceed our operating cash flow – net of the dividend. Even then, we intend to maintain our payout ratio. That’s enough for now on what we have implemented to date from our package of measures.
Load more

Recommended publications
  • Report on the First Three Quarters of 2014
    REPORT ON THE FIRST THREE QUARTERS OF 2014 • Operating result of €2.9 billion as forecast • Net fi nancial debt down by €2.3 billion • Outlook for 2014 confi rmed • RWE plants pre-qualify for UK capacity market AT A GLANCE RWE Group – key figures1 Jan – Sep Jan – Sep + /− Jan – Dec 2014 2013 % 2013 Electricity production billion kWh 151.2 160.7 − 5.9 218.2 External electricity sales volume billion kWh 191.7 200.0 − 4.2 270.9 External gas sales volume billion kWh 184.6 228.7 − 19.3 320.7 External revenue € million 35,288 38,698 − 8.8 52,425 EBITDA € million 4,700 6,048 − 22.3 7,904 Operating result € million 2,908 4,190 − 30.6 5,369 Income from continuing operations before tax € million 1,470 1,251 17.5 − 2,016 Net income € million 994 609 63.2 − 2,757 Recurrent net income € million 763 1,915 − 60.2 2,314 Earnings per share € 1.62 0.99 63.6 − 4.49 Recurrent net income per share € 1.24 3.12 − 60.3 3.76 Cash flows from operating activities of continuing operations € million 4,759 4,503 5.7 4,803 Capital expenditure € million 2,284 2,526 − 9.6 3,978 Property, plant and equipment and intangible assets € million 2,197 2,458 − 10.6 3,848 Financial assets € million 87 68 27.9 130 Free cash flow € million 2,562 2,045 25.3 960 30 Sep 2014 31 Dec 2013 Net debt € million 30,709 30,727 − 0.1 Workforce2 60,439 64,896 − 6.9 1 See commentary on reporting on page 11.
    [Show full text]
  • Annual Report of RWE AG 2014
    RWE ANNUAL REPORT 2014 ANNUAL REPORTANNUAL 2014 2014 KEY FIGURES AT A GLANCE • Operating result: €4.0 billion • Net income: €1.7 billion • Recurrent net income: €1.3 billion • Dividend proposal: €1 per share • Cash flows from operating activities: €5.6 billion RWE Group1 2014 2013 + /− % Electricity production billion kWh 208.3 218.2 − 4.5 External electricity sales volume billion kWh 258.3 270.9 − 4.7 External gas sales volume billion kWh 281.3 320.7 − 12.3 External revenue € million 48,468 52,425 − 7.5 EBITDA € million 7,131 7,904 − 9.8 Operating result € million 4,017 5,369 − 25.2 Income from continuing operations before tax € million 2,246 − 2,016 – Net income/RWE AG shareholders' share in income € million 1,704 − 2,757 – Recurrent net income € million 1,282 2,314 − 44.6 Return on capital employed (ROCE) % 8.4 10.6 – Weighted average cost of capital (WACC) before tax % 9.0 9.0 – Value added € million − 277 811 – Capital employed € million 47,711 50,646 − 5.8 Cash flows from operating activities of continuing operations € million 5,556 4,803 15.7 Capital expenditure € million 3,440 3,978 − 13.5 Property, plant and equipment and intangible assets € million 3,245 3,848 − 15.7 Financial assets € million 195 130 50.0 Free cash flow € million 2,311 960 140.7 Number of shares outstanding (average) thousands 614,745 614,745 – Earnings per share € 2.77 − 4.49 – Recurrent net income per share € 2.09 3.76 − 44.4 Dividend per share € 1.002 1.00 – 31 Dec 2014 31 Dec 2013 Net debt of the RWE Group € million 31,010 30,727 0.9 Workforce3 59,784 64,896 − 7.9 1 See notes on reporting on page 41.
    [Show full text]
  • RWE CR Report 2010
    Our Responsibility. Report 2010 EMBRACING CHALLENGES. 2010 Key Figures at a Glance. Field Performance indicator 2010 2009 2008 2007 Economy External electricity sales volume billion kWh 311.2 282.8 317.1 306.4 External gas sales volume billion kWh 395.4 332.0 327.8 335.0 Electricity customers million 16.2 16.5 14.4 14.6 Gas customers million 7.9 8.0 6.2 6.3 External revenue €million 53,320 47,741 48,950 42,507 Share of the RWE Group’s revenue earned in countries with a high or very high risk of % 12.0 12.7 12.9 11.8 corruption1 Net income €million 3,308 3,571 2,558 2,667 Value added €million 2,876 3,177 3,453 2,970 Capital expenditure €million 6,643 15,637 5,693 4,227 Environment Power plant capacity MW 52,214 49,582 45,196 44,533 NOX emissions g/kWh 0.58 0.67 0.67 0.76 SO2 emissions g/kWh 0.29 0.34 0.39 0.57 Particulate emissions g/kWh 0.019 0.024 0.028 0.034 Primary energy consumption billion kWh 403.0 368.2 396.0 411.7 Water consumption2 m3/MWh 1.41 1.70 1.49 1.69 Specific CO2 emissions mt/MWh 0.732 0.796 0.768 0.866 3 Scope 1 CO2 emissions million mt 167.1 151.3 174.5 189.7 4 Scope 2 CO2 emissions million mt 3.1 3.5 3.8 3.6 5 Scope 3 CO2 emissions million mt 135.7 128.1 127.0 127.8 Share of the Group’s electricity generation % 4.06 3.5 2.4 2.4 accounted for by renewables Society Employees7 70,856 70,726 65,908 63,439 Share of women in the company % 26.2 26.1 25.6 25.2 Share of women in executive positions % 10.8 9.08 8.9 8.9 Fluctuation rate % 8.3 8.7 8.8 9.1 Health ratio % 95.6 95.4 95.4 95.6 9 Lost-time incident frequency LTIF 3.5
    [Show full text]
  • Factbook 20192019
    To display guides, tick Guides in View To reset the slide to its original form, select Home > Slides > To change the Reset text level, select Home > Paragraph To change the > Increase/Decrease layout, select List Level Home > Slides > Layout Increase List Level Decrease List Level Do not use the standard bullets and numbering function > List levels only FactbookFactbook 20192019 March 2020 Factbook 2019 Page 1 Adjust footer/date via menu: Insert > Header & Footer To display guides, tick Guides in View To reset the slide to its original form, select Home > Slides > To change the Reset text level, select Disclaimer Home > Paragraph To change the > Increase/Decrease layout, select List Level Home > Slides > Layout Increase List Level Decrease This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions List Level 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 Do not use the standard bullets and numbering unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements function > List levels only 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.
    [Show full text]