Empower Energy Evolution
Full-year 2019
Strategic & Financial Update
Andreas Schierenbeck - CEO Sascha Bibert - CFO
10 March 2020
Agenda
Full-Year 2019
Strategic Update
Financial Update
Appendix
2
Highlights
Fortum
Team
- New Board of Management complete
- Turnover rate further declined 2019
- Excellent employee survey results
Performance
- Adj. EBIT FY 2019 of €863m in line with increased gui- dance on back of strong Q4
- Adj. Net Income of €614m
- CoD Berezovskaya 3 postponed into Q3 2020
- CoD for Datteln 4 already in early summer 2020 expected
Portfolio & Strategy
- Clearly committed timetable for exiting hard coal in Germany
- Agreement for sale of lignite- fired Schkopau by Oct 2021
- Significant progress in business (Scholven & UK grid stability tender)
Shareholders
-
Fortum has supported
Uniper's strategy and financial policy - Continuous dialogues
- Strong results support increased dividend proposal of €421m for FY 2019
Full-Year 2019 | 3 |
Results FY 2019 - Fully in line with increased outlook
Adj. EBIT | Adj. EBITDA |
Adj. FFO | Dividend2 |
€m | |
865 | 950 |
863 | |
750 | |
FY 2018 | FY 2019 |
€m | |
1,543 | 1,561 |
FY 2018 | FY 2019 |
€m | |
1.050 | |
756 | 923 |
850 | |
FY 2018 | FY 2019 |
€m | |
329 | 421 |
FY 2018 | FY 2019 |
Adj. Net Income | Net Income1 | |||||||||||||
€m | €m | 610 | ||||||||||||
687 | 614 | |||||||||||||
-401 | ||||||||||||||
FY 2018 | FY 2019 | FY 2018 | FY 2019 | |||||||||||
Economic Net Debt & Rating | ||
€m | 2,650 | |
2,509 | BBB | |
watch negative | ||
1.6x | 1.7x | BBB+ |
stable | ||
FY 2018 | FY 2019 | Net Debt / Adj. EBITDA |
1. | Net income attributable to Uniper shareholders | ||
2. | Dividend proposal for FY 2019 | Full-Year 2019 | 4 |
Adj. EBIT FY 2019 - Prior year one-offs compensated
Reconciliation of Adjusted EBIT FY 2018 to FY 2019
€m
Adj. EBIT | Lapse | Other | UK | Outright Unavai- Commodity LNG | Russia Adj. EBIT |
FY 2018 | one-offs | (nuclear | capacity | prices & lability optimization Freeport | FY 2019 |
(H1 2018) | provisions) | income | volumes |
Key Messages
Significant YoY effect from provision movements
Positive business development:
- Generation: upside from UK capacity income & higher outright result, only slightly offset by lower availability at Maasvlakte 3 & Ringhals 2
- Commodities: Strong Q4 optimization result partly offsets Freeport hedge effect
- Russia: above prior year driven by higher prices
Full-Year 2019 | 5 |
Operating Cash Flow FY 2019 - Driven by strong Q4
Reconciliation of Adjusted EBIT FY 2019 to Operating Cash Flow FY 2019
€m
1,561
1,011
Adj. EBIT | D&A | Adj. EBITDA | Non-cash | Provision | Chg. net | Payments | OCFbIT | Interest | Tax | OCF |
FY 2019 | FY 2019 | effective | utilization | working | non-op. | FY 2019 | FY 2019 | |||
EBITDA | capital | earnings, | ||||||||
items | others |
Full-Year 2019 | 6 |
Economic Net Debt FY 2019 - Interest rate impact
Reconciliation of Economic Net Debt YE 2018 to YE 2019
€bn
3.2 | ||||||||||||||||||||||||||||
0.9 | 2.5 | 0.2 | 0.0 | 0.1 | 2.7 | |||||||||||||||||||||||
-0.7 | 0.7 | 1.0 | ||||||||||||||||||||||||||
0.9 | -0.3 | |||||||||||||||||||||||||||
0.8 | 0.3 | |||||||||||||||||||||||||||
1.5 | 0.8 | -0.9 | 1.0 | |||||||||||||||||||||||||
0.8 | 0.6 | |||||||||||||||||||||||||||
Economic | Margining | Economic | Divest | OCF | Dividend Investments Pensions | ARO | Other | Economic | ||||||||||||||||||||
Net Debt | adjustment | Net Debt | Net Debt | |||||||||||||||||||||||||
YE 2018 | YE 2018 | YE 2019 | ||||||||||||||||||||||||||
Pro-forma | ||||||||||||||||||||||||||||
AROs1 | Pension2 | Net financial position3 | ||||||||||||||||||||||||||
- Includes nuclear and other asset retirement obligations (AROs) as well as receivables from Swedish Nuclear Waste fund (KAF).
- Change in interest rates for pension obligations by 0.8%-points for Germany since end of 2018.
- Includes cash & cash equivalents, non-current securities, financial receivables from consolidated Group companies
and financial liabilities. | Full-Year 2019 | 7 |
Outlook FY 2020 - Positive bottom-line development
Adjusted EBIT
€m | 1,000 |
863 | Range |
750 | |
FY 2019 | FY 2020E |
Stable development
Contribution from new build projects and increased outright prices offset by lower fossil earnings
Adjusted Net Income (ANI)
€m
800 | |
614 | Range |
550 | |
FY 2019 | FY 2020E |
Noticeably increased
Significant improvement of economic financial result
Dividend
€m
500 | ||
421 | 1.371 | |
1.151 | ||
FY 2019 | FY 2020E |
Higher dividend target 2020
Above envisaged 25% CAGR path (FY 2016 - FY 2020)
1. DPS - Dividend per share (€) | Full-Year 2019 | 8 |
Adj. EBIT FY 2020 - Legacy projects to be finalized
Reconciliation of Adjusted EBIT FY 2020E vs. FY 2019
€m
863
1,000
Range
750
Adj. EBIT | Commodity | Fossil fleet | Commissioning | Outright | Other | Adj. EBIT | |||
FY 2019 | optimization | (incl. RUS) | Datteln 4 & | 1 | (nuclear | FY 2020E | |||
Berezovskaya 3 | provisions) | ||||||||
1. Commercial operation: Datteln 4 early summer 2020 and Berezovskaya 3 in Q3 2020 | Full-Year 2019 | 9 |
Agenda
Full-Year 2019
Strategic Update
Financial Update
Appendix
10
Uniper's evolutionary steps
Setting the
sails
2018-2019
To open
seas
- Operations improved
- Growth in security-of-supply initiated
- Legacy projects about to be finalized
- Total shareholder return >200% since IPO1
- CO2-reduction >36% since 20162
Tightening
the ship
2015-2017
- Cash optimized
- Portfolio streamlined
- Credit rating secured
- Transparency increased
1. | Total shareholder return since listing on 12 Sep. 2016 until 31 Dec. 2019 | ||
2. | Total scope 1 emission reduction FY 2019 vs. FY 2016 according to Uniper Sustainability Report | Strategic Update | 11 |
Empower energy evolution - Towards carbon neutrality
Hydro | Nuclear | Clean thermal | Renewables | Green gas |
generation |
Vision for a clean energy portfolio
Strategic Update | 12 |
Ambition to drive decarbonization
European Generation | International Power | Global Commodities | |
mt CO2 1
50
40
44.2
30 | 24 | |
22.1 | ||
20 | ||
10 | Net zero | |
target | ||
0 | ||
2016 20192035E
Carbon neutral by 2035 | Variety of activities aimed at | ||
carbon emission reductions | |||
1. Direct emissions - scope 1 | |||
Source photos: Unipro, Uniper | Strategic Update | 13 |
Uniper's new strategy - Clear transition agenda
Coal
generation
EBIT 2019
Decarbonize
- Exit path for hard coal and lignite fleet with aim to offer new business and employment prospects
- Improve carbon footprint of remaining fleet
- Materialize commercial value with brownfield site conversions
Gas generation &
gas midstream
EBIT 2019
Expand & decarbonize
- Expand Customer Solutions business with industrial customers and TSOs
- Materialize merchant upside of existing high efficient gas-firedpower generation
- Decarbonization of gas flows as long- term goal with upside for existing generation and gas mid-stream
Carbon-free generation
EBIT 2019
Expand
- Expand carbon-free position by either direct exposure to the renewable value chain or act as enabler of renewable projects
- Key focus on sustainable portfolio transformation
Active de-risking | Leverage current portfolio | Explore new options | ||
Strategic Update | 14 |
Coal power exit - De-risking portfolio and protecting
Coal generation
cash flows
Uniper's coal fleet - Exit path
MW
Schkopau ► 900 MW | ||||||
9,000 | Scholven | ► 760 MW | ||||
Wilhelmshaven ► 757 MW | ||||||
Heyden | ► 875 MW | |||||
Staudinger 5 | ► 510 MW | |||||
6,000 | Ratcliffe | ► 2,000 MW | ||||
Maasvlakte 3 | ► 1,070 MW | |||||
3,000 | Datteln 4 ► 1,050 MW | |||||
Berezovskaya | ► 2,263 MW | |||||
0 | ||||||
2020E | 2025E | 2030E | 2035E | 2040E |
Key messages
- Power portfolio to be de-risked
- Exit from lignite-fired power generation in Europe by autumn 2021
- Ambitious exit path for hard coal-fired generation in Germany with closure of four out of five power stations in 2022 and 2025
- German coal-fired power fleet with 78% lower capacity by 2020 and 2025
- Brownfield coal and gas power plant sites with option value
Strategic Update | 15 |
New investment opportunities for our brownfield sites
Coal generation
Uniper's power plant sites
Wilhelms- | ||
haven | ||
Ratcliffe | Datteln | Heyden |
Maasvlakte | Staudinger | |
Scholven |
Coal power plant site
Other brownfield site
New solutions
- Plans for own and 3rd party use
- Offering power assets & services for new applications or new security-of-supply solutions
Site conversion to industrial hubs
- Attract new customers to sites
- Expansion of own energy-related activities, e.g. waste-to-energy, servicing new data centers
Site conversion to gas-fired plants
- New CHP plant at Scholven site in execution mode
- Further power plant projects tailored to specific needs in advanced planning mode
Source photos: Uniper | Strategic Update | 16 |
Gas generation & gas midstream
Materialize merchant upside of existing highly efficient gas-fired power generation
Uniper's gas-fired fleet with load factors (2019) | Uniper's gas plants well positioned | ||||||||||||||
GW | |||||||||||||||
9 | utilized | non-utilized | |||||||||||||
6 | |||||||||||||||
3 | UK | Germany | |||||||||||||
0 | |||||||||||||||
Russia | UK | GER | Other 1 | ||||||||||||
- Fuel switch ongoing across Europe
- European spark spreads with further upside due to nuclear and coal phase-out
- German gas-fired power stations with upside in merchant market
- Uniper's gas plants in system-critical position to serve TSO- product needs
- Adequate compensation for providing flexibility & stability is key to ensure increasing share of renewables
1. Other: includes plants in Netherlands, Hungary and Sweden | Strategic Update | 17 |
Gas-fired generation as key element for growth and carbon reduction
generation & gas midstream
Solutions for | Solutions for | Modernization |
TSO | industrial | of gas-fired |
customers | customers | plants |
Gas
- New TSO grid stability products in GER and UK
- Capacity up to ~300 MW per project
- Commissioning from 2021 onwards
- Low carbon steam/energy solutions with new build or refurbishment of customer sites
- Core markets are GER, UK, NL
- Various design contracts closed, con- struction tenders pending with possible CoD post 2021
- Winner of tenders to refurbish three gas-fired units in Russia with total capacity: c. 2,500 MW
- Russian units will be recommissioned in 2022-2025
- Further upgrades under review
Strategic Update | 18 |
Gas as key enabler of the energy transition - Hydrogen making net zero possible
Gas generation & gas midstream
Uniper's gas portfolio
Sales business
~300 TWh
Industrial
Customer
Solutions,
CHP
Gas storage
~8 bcm
Regasification
4.7 bcm p.a.
Gas fleet,
contracts with TSOs
Power-2-gas
Power-2-X
Gas LTCs
~400 TWh
LNG supply
~35 TWh p.a.
Uniper pushing for hydrogen
- Hydrogen is key to climate neutrality as electrification alone cannot achieve climate goals
- Key demand areas are transport, heavy industry but also power generation
- Legislative action needed to drive decarbonization of gas
- Uniper's infrastructure can deal with an increasing amount of hydrogen today
- Uniper operates various large scale hydrogen facilities
-
Current projects envisage up to
30-40 MWel electrolyser & injection of green hydrogen into the caverns
Source photos: Uniper | Strategic Update | 19 |
Uniper's reliable carbon-free portfolio today
Carbon-free generation
~11 TWh p.a. of nuclear production in SWE
- Concessions for Oskarshamn 3, Forsmark 1-3 & Ringhals 3-4 run into early to mid 2040ies
1.4 GW
~13 TWh p.a. of hydro production in SWE & GER
- Concessions to operate are either unlimited (SWE) or long-term (GER 2030-2050+) with subsequent extension optionality
3.6 GW
Up to ~5 TWh p.a. of renewables contracted
- Enabling renewable energy projects as off-taker under long-term purchase price agreements (PPAs) in EU & USA with delivery mostly in 2021-2032
Strategic Update | 20 |
Strategic ambitions impact steering
- Capex geared towards growth & focused on empowering energy evolution
- Strengthen / protect current zero-carbon portfolio
- Secure upside optionality on existing gas-
plants | Invest- |
ments |
- Dividend policy simplified allowing for growth while keeping attractive pay-outs
- Stable investment grade rating & optimized balance sheet
Financial Structure KPI Steering
- Adjust financial steering & reporting KPI to growing business around providing flexibility & security of supply
- Continue successful track record regarding non-financial KPI
- Implementation of a long-termTRIF target (further 1/3 reduction by 2025)
- Include carbon-intensity into investment decision model
Strategic Update | 21 |
Agenda
Full-Year 2019
Strategic Update
Financial Update
Appendix
22
FY 2016 - FY 2019 with strong delivery on strategic plan
Increased | Reduced commodity | Portfolio & capital | Attractive | |||||||
cash generation | price exposure | use optimized | shareholder return | |||||||
Adjusted FFO | Non-wholesale earnings | Economic Net Debt | Dividend | ||||
€m | % | €m | €m | ||||
923 | 4,167 | 421 | |||||
479 | 2,650 | ||||||
30% | >50% | BBB- | BBB | 201 | |||
S&P-Rating | S&P-Rating | ||||||
FY 2016 | FY 2019 | FY 2016 | FY 2019 | YE 2016 | YE 2019 1 | FY 2016 | FY 2019 |
1. Figure would amount to €2,968m based on the former definition (i.e. excl. margining receivables). | Financial Update | 23 |
Key financial aspirations
Earnings | Investment policy | Strong balance sheet | Simplified steering & | |||||||
improvement | focused on growth | and focus on rating | dividend policy | |||||||
BBB | ||||||
Ambition to increase | Increasing Growth | Focus to retain rating | Introduction of | |||
CAPEX | Adj. Net Income as KPI | |||||
Growing share of carbon- | Focused on energy | Updated investment | Ambition to increase | ||
free generation | transition | hurdle rate concept | absolute dividend | ||
Financial Update | 24 |
2022 - Key drivers
Growth projects with substantial contribution | Declining earnings from fossil businesses |
Lower fossil spread margins
Russia: Lower capacity
UK: Lower capacity payments
payments (shift from CSA to
and lapse of 2018/19 benefit
Earnings
KOM remuneration scheme)
Datteln 4 to start in early | Berezovskaya 3 to start in | |
summer 2020 | Q3 2020 | |
Outright GER and SWE: | Stronger LNG & gas midstream | |
Increase in achieved prices | business | |
Financial result improving: Economic interest structurally positive
Financial Update | 25 |
Investment policy revised - Focused growth
Investment policy
Investment plan FY 2020 - 2022: €2.7bn
1,200 | |||||||||||
900 | |||||||||||
600 | |||||||||||
300 | |||||||||||
0 | |||||||||||
2018 | 2019 | 2020E | 2021E | 2022E | |||||||
Maintenance capex | Legacy growth capex | ||||||||||
New growth capex | |||||||||||
Growth capex: >€1.5bn with clear focus
~25%~75%
Legacy growth projects | New growth projects | ||
| Datteln 4 | | Irsching 6 |
| Berezovskaya 3 | | Scholven |
| Russian modernization | ||
UK grid stability project | |||
| Brownfield development | ||
Green power & gas |
Financial Update | 26 |
Financial framework with clear boundaries
Balance sheet
Investments - new hurdle concept
+100 BPS | +200 BPS | |
"green" | "other" | |
WACC after tax
(segment & country specific)
- Fixed-markup on WACC after tax depending on project's climate footprint
- Additional adjustments apply, depending on wholesale-exposure, technology and/or payback period
Retain BBB credit rating
Economic Net Debt / EBITDA
2.0x
1.7x
BBB
stable 1.8x
BBB+
stable
FY 2019 | FY 2022E |
- Aspired debt factor in the range of 1.8x - 2.0x aligned with rating target
- Ensures ongoing market access for business and energy trading
- Temporary deviations are tolerated
Financial Update | 27 |
Dividend outlook
Free cash flow based policy | Outlook | |
€m | ||||||
steering | 600 | |||||
1.37 | ||||||
& | 400 | 1.15 | ||||
policy | 0.90 | |||||
Dividend | 0.74 | ~ | ~ 500 | |||
200 | 0.55 | 329 | 421 | |||
271 | ||||||
201 | ||||||
0 | FY 2019 1 | |||||
FY 2016 | FY 2017 | FY 2018 | FY 2020E | |||
Target | ||||||
Dividend | DPS - Dividend per share (€) |
Key messages
Balance between attractive shareholder renumeration and growth CAPEX:
- Previous free cash flow based payout policy, i.e. 75%-100% of FCfO, is replaced by an absolute dividend target
- For FY 2020: Dividend target of € 1.37 per share (~€500m)
- Ambition to grow dividend further beyond 2020
1. Dividend proposal for FY 2019 | Financial Update | 28 |
Key takeaways
Execution | ||
1 | Strong | 3 in |
Performance | progress | |
2019 |
Clear way | Ambition |
2 forward | to grow |
4 earnings & | |
dividend |
Strategic and Financial Update | 29 |
Agenda
Full-Year 2019
Strategic Update
Financial Update
Appendix
30
Appendix
Operating KPIs
Commodity prices and hedging
Financials
31
Uniper - Operating indicators
Global Commodities - | European Generation - |
Gas storage filling1 | Production volume2 |
TWh | TWh | ||
76% | 100% | 90 | -14% |
105 |
International Power - Production volume
TWh
60-1%
Key messages
Global Commodities
- Gas storage filling levels at maximum
90 | 75 | ||||||
75 | 60 | Gas | |||||
60 | 45 | ||||||
45 | Coal | ||||||
30 | 30 | ||||||
Nuclear | |||||||
15 | 15 | ||||||
0 | 0 | Hydro | |||||
YE 2018 YE 2019 | FY 2018 FY 2019 | ||||||
50 | European Generation | |
Fuel switch coal to gas | ||
40 | Unplanned coal plant outage | |
30 | in NL | |
| Higher outright volumes | |
20 | International Power | |
| Stable output | |
10 | ||
0 | ||
FY 2018 | FY 2019 |
1. | Physical filling-level | ||
2. | Pro-rata view | Appendix | 32 |
Appendix
Operating KPIs
Commodity prices and hedging
Financials
33
Commodity markets - Volatile trend
Carbon trading prices1
€/t CO2
30
25
20
15
10 | CO2 |
5 Jan 2018 Nov 2018 Sep 2019
Gas prices2
€/MWh
22
20
18
16
14
TTF
12
Jan 2018 Nov 2018 Sep 2019
Electricity prices3
€/MWh
60
50
40
30
20 | Germany | |
Nordic | ||
10
Jan 2018 Nov 2018 Sep 2019
Dark & spark spreads4
€/MWh
4
2
0
-2
-4CDS-DE CSS-DE
-6
Jan 2019 Jul 2019 Jan 2020
1. EU Allowances (EUA): spot prices 2. Gas forwards 2021 3. Electricity baseload forwards 2021 | ||
4. Dark and spark spreads Germany with electricity baseload (efficiency coal plants 39%, gas plants 55%) | Appendix | 34 |
Source: Uniper Market Analysis; prices shown until 6 March 2020 |
Outright power hedging in Germany and Nordic
Outright position - Baseload power price1
>100% | >45% | >35% | |
€/MWh | >75% | >15% | >0% |
60 |
50
40
30
20
2020 | 2021 | 2022 | |
Hedged price Germany | Hedge ratio Germany | ||
Hedged price Nordic | Hedge ratio Nordic | ||
1. Status: 31 December 2019 | Appendix | 35 |
Appendix
Operating KPIs
Commodity prices and hedging
Financials
36
Uniper Group - Adjusted EBIT(DA) by sub-segment
Adj. EBITDA and EBIT
€m | FY 2019 | FY 2018 | FY 2019 | FY 2018 | |
Adj. EBITDA | Adj. EBITDA | Adj. EBIT | Adj. EBIT | ||
European Generation | Hydro | 304 | 363 | 243 | 288 |
Nuclear | 60 | 99 | -3 | 39 | |
Fossil | 519 | 408 | 208 | 86 | |
Other/ Consol. | |||||
-20 | -23 | -24 | -26 | ||
Subtotal | 863 | 847 | 424 | 386 | |
Global Commodities | Gas | 322 | 329 | 250 | 256 |
COFL | 70 | 16 | 5 | -13 | |
Power | 43 | 85 | 32 | 74 | |
Subtotal | 435 | 430 | 287 | 318 | |
International Power | Russia | 404 | 373 | 308 | 278 |
Subtotal | 404 | 373 | 308 | 278 | |
Administration / Consolidation | -141 | -107 | -156 | -117 | |
Total | 1,561 | 1,543 | 863 | 865 | |
Appendix37
Adj. EBIT FY 2019 - Development by sub-segment
European Generation
€m | ||||
386 | 121 | 3 | 424 | |
-45 | -42 | |||
FY 2018 Hydro | Nuc. | Fossil | Cons. FY 2019 |
Global Commodities | International Power | ||||||||||
€m | €m | ||||||||||
318 | 18 | 287 | 278 | 30 | 308 | ||||||
-6 | |||||||||||
-43 | |||||||||||
FY 2018 Gas | COFL Power | FY 2019 | FY 2018 | Russia | FY 2019 |
- Hydro: Lapse of H1 2018 provision release; positive volume/price effects
- Nuclear: Nuclear waste provision and Ringhals 2 outage
- Fossil: UK capacity market income and positive carbon management effects with Global Commodities, partly offset by lower coal-fired production
- Gas Midstream: Good gas optimization offset by gas inventory impairments
- COFL: Strong contribution from marine fuel business and better coal trading offset negative LNG Freeport hedge effects
- Power: Carbon management effects with European Generation
-
Russia: Positive price effects in Russia's
European electricity market price zone and slightly positive FX effects
Appendix38
Uniper Group - Key financial performance items
Reconciliation of Adj. EBITDA to Adj. net income and net income
€m | FY 2019 | FY 2018 |
Adjusted EBITDA | 1,561 | 1,543 |
Economic depreciation and amortization / reversals | -698 | -678 |
Adjusted EBIT | 863 | 865 |
Economic interest result | ||
17 | 28 | |
Minority participations | -37 | -39 |
Taxes on operating result | -231 | -167 |
Adjusted net income | 614 | 687 |
Non-operating result (before taxes and minorities) | -80 | -1,225 |
Minority participations on non-operating earnings | 3 | 79 |
Taxes on non-operating result | -51 | 201 |
Other financial result | 159 | -168 |
Taxes on the other financial result | -33 | 25 |
Net income/ loss attributable to shareholder of the Uniper SE | 610 | -401 |
Sales | 65,804 | 91,813 |
Appendix39
Uniper Group - Adjusted EBITDA to Net Income
Reconciliation of Adj. EBIT FY 2019 to Adj. Net Income FY 2019
€m
Adj. | Economic | Adjusted | Derivative | Adjustments | Net | Other | Taxes on non- | Net |
EBIT | interest, | net | financial | from physically | impairments | operating | Income1 | |
taxes, | income | instruments | settled | earnings & other | ||||
minorities | commodity | financial result, | ||||||
derivatives | minorities |
Non-operating earnings
1. Net income attributable to Uniper shareholders. | Appendix | 40 |
Uniper Group - Economic Interest Expense (net)
Economic interest expense
€m | FY 2019 | FY 2018 |
Interest from financial assets / liabilities | 13 | 14 |
Interest cost from provisions for pensions and similar provisions | -17 | |
-20 | ||
Accretion of provisions for retirement and obligation and other provisions | -22 | |
-30 | ||
Capitalized interest1 | 50 | |
89 | ||
Other2 | -34 | 3 |
Economic interest expense (net) | 18 | 28 |
1. Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized as part of
the cost of the asset; borrowing cost are interest costs incurred by an entity in connection with the borrowing of funds. | ||
2. Includes e.g. interest due to tax provisions/ receivables and adjustments due to changes in interest rates on provisions. | Appendix | 41 |
Uniper Group - Non-operating adjustments
Non-operating adjustments1
€m | FY 2019 | FY 2018 |
Net book gains / losses | -7 | 31 |
Impact of derivative financial instruments | ||
-1,228 | -402 | |
Adjustments of revenue and cost of materials from physically settled commodity derivatives to the contract price | ||
448 | 671 | |
Restructuring / cost management expenses / income | ||
-50 | -73 | |
Non-operating impairment charges / reversals | ||
874 | 681 | |
Miscellaneous other non-operating earnings | -90 | 35 |
Non-operating adjustments | -52 | 943 |
1. The comparative figures shown have been restated. | ||
Further information can be found in the Annual Report, Note 3 to the Consolidated Financial Statements. | Appendix | 42 |
Uniper Group - Cash-effective investments
Investments by segment
€m | FY 2019 | FY 2018 | % | ||
European Generation | 409 | 397 | 3.0 | ||
Global Commodities | |||||
27 | 32 | -15.8 | |||
International Power | |||||
196 | 190 | 3.4 | |||
Administration / Consolidation | |||||
26 | 23 | 10.7 | |||
Total | 657 | 642 | 2.4 | ||
Investment split - Maintenance and growth | |||||
€m | FY 2019 | FY 2018 | % | ||
Maintenance & replacement | 361 | 317 | 13.7 | ||
Growth | |||||
297 | 325 | -8.6 | |||
Total | 657 | 642 | 2.4 | ||
Appendix43
Uniper Group - Net financial position
Net financial position
€m | 31 Dec 2019 | 31 Dec 2018 |
Liquid funds | 889 | 1,400 |
Non-current securities | ||
100 | 83 | |
Margining receivables1 | ||
318 | 698 | |
Financial liabilities and liabilities from leases | 1,935 | 2,939 |
Net financial position | 628 | 757 |
Provisions for pensions and similar obligations | 804 | |
1,031 | ||
Asset retirement obligations | 948 | |
991 | ||
Economic net debt | 2,650 | 2,509 |
1. Since 2019 receivables from margining are reported as part of the Economic Net Debt. | ||
This also is applies retrospectively for FY 2018 (FY 2018: €3,208m). | Appendix | 44 |
Economic net debt is almost free of borrowed money
Economic Net Debt (YE 2019) | Subsidiary financial liabilities3 | Interest rate sensitivities |
Balance Sheet
€bn
2.7
1.0 Asset retirement obligations
1.0 Pension provisions
Subsidiary financial
1.9 liabilities
-1.0 | Liquid funds |
Margining receivables | |
-0.3 |
€bn | |||
Lease liabilities | 0.8 | ||
Margining | |||
0.5 | |||
Shareholder loans | |||
0.4 | |||
Bank loans | 0.1 | ||
Other | 0.1 | ||
- Asset retirement obligations (c.p.)1
- Current Interest rates: from 0% to 2.0%
- Rough sensitivity: +/-10 BP = +/- €50m
- Pension provisions (c.p.)2
~€+400m
~€-350m | |||
Interest | |||
-50 BP | YE 2019 | +50 BP | rate |
1.6%3 |
- Considering only the gross obligation amount, i.e. assuming no movements in Swedish Nuclear Waste fund (KAF).
- Considering only defined benefit obligations (DBO), i.e. assuming no movements in plan assets.
3. Weighted average interest rate. | Appendix | 45 |
Uniper Group - Consolidated balance sheet (1/2)
Balance sheet - Non-current and current assets1
€m | 31 Dec 2019 | 31 Dec 2018 |
Goodwill | 1,886 | 1,816 |
Intangible assets | 742 | 768 |
Property, plant and equipment and right-of-use assets | 10,201 | 10,612 |
Companies accounted for under the equity method | 446 | 440 |
Other financial assets | 710 | 866 |
Financial receivables and other financial assets | 3,813 | 3,618 |
Receivables from derivative financial instruments | 4,787 | 4,691 |
Other operating assets and contract assets | 159 | 222 |
Income tax assets | - | 6 |
Deferred tax assets | 988 | 1,184 |
Non-current assets | 23,732 | 24,224 |
Inventories | 1,508 | 1,683 |
Financial receivables and other financial assets | 633 | 1,391 |
Trade receivables | 7,090 | 8,354 |
Receivables from derivative financial instruments | 8,601 | 12,214 |
Other operating assets and contract assets | 1,287 | 1,118 |
Income tax assets | 16 | 40 |
Liquid funds | 889 | 1,400 |
Assets held for sale | - | 546 |
Current assets | 20,024 | 26,746 |
Total assets | 43,756 | 50,970 |
1. The comparative figures shown have been restated. | ||
Further information can be found in the Annual Report, Note 3 to the Consolidated Financial Statements. | Appendix | 46 |
Uniper Group - Consolidated balance sheet (2/2)
Balance sheet - Equity and liabilities1
€m | 31 Dec 2019 | 31 Dec 2018 |
Capital stock | 622 | 622 |
Additional paid-in capital | 10,825 | 10,825 |
Retained earnings | 3,145 | 3,088 |
Accumulated other comprehensive income | -3,207 | -3,531 |
Equity attributable to the shareholders of Uniper SE | 11,386 | 11,004 |
Attributable to non-controlling interest | 556 | 497 |
Equity (net assets) | 11,942 | 11,501 |
Financial liabilities and liabilities from leases | 1,119 | 1,187 |
Liabilities from derivative financial instruments | 4.277 | 4.327 |
Other operating liabilities and contract liabilities | 694 | 529 |
Provisions for pensions and similar obligations | 1,031 | 804 |
Miscellaneous provisions | 5,422 | 5,455 |
Deferred tax liabilities | 410 | 448 |
Non-current liabilities | 12,954 | 12,750 |
Financial liabilities and liabilities from leases | 815 | 1,752 |
Trade payables | 7,308 | 8,256 |
Liabilities from derivative financial instruments | 8,238 | 12,546 |
Other operating liabilities and contract liabilities | 1,322 | 1,667 |
Income taxes | 61 | 47 |
Miscellaneous provisions | 1,115 | 1,694 |
Liabilities associated with assets held for sale | - | 757 |
Current liabilities | 18,860 | 26,719 |
Total equity and liabilities | 43,756 | 50,970 |
1. The comparative figures shown have been restated. | ||
Further information can be found in the Annual Report, Note 3 to the Consolidated Financial Statements. | Appendix | 47 |
Uniper Group -
Consolidated statement of cash flows (1/2)
Statement of cash flows1
€m | FY 2019 | FY 2018 |
Net income / loss | 644 | -442 |
Depreciation, amortization and impairment of intangible assets, of property, plant and equipment, and of | 1,750 | 1,532 |
right-of-use assets | ||
Changes in provisions | -700 | -51 |
Changes in deferred taxes | 223 | -113 |
Other non-cash income and expenses | -362 | 161 |
Gain/Loss on disposal of intangible assets, property, plant and equipment, equity investments and | -11 | -50 |
securities (> 3M) | ||
Changes in operating assets and liabilities and in income taxes | -612 | 204 |
Cash provided by operating activities (operating cash flow) | 932 | 1,241 |
Proceeds from disposals | 346 | 130 |
Payments for investments | -657 | -642 |
Proceeds from disposals of securities (>3M) and of financial receivables and fixed-term deposits | 1,185 | 653 |
Purchases of securities (>3M) and of financial receivables and fixed-term deposits | -657 | -1,494 |
Changes in restricted cash and cash equivalents | 4 | 90 |
Cash provided (used for) by investing activities | 220 | -1,263 |
1. The comparative figures shown have been restated. | ||
Further information can be found in the Annual Report, Note 3 to the Consolidated Financial Statements. | Appendix | 48 |
Uniper Group -
Consolidated statement of cash flows (2/2)
Statement of cash flows1
€m | FY 2019 | FY 2018 |
Cash proceeds/payments arising from changes in capital structure | 3 | 14 |
Payed dividend to the shareholder of Uniper SE | -329 | -271 |
Payed dividend to other shareholders | -32 | -31 |
Proceeds from financial liabilities | 55 | 1,228 |
Repayments of financial liabilities and reduction of outstanding lease liabilities | -1,173 | -621 |
Cash provided (used for) by financing activities | -1,477 | 319 |
Net increase / decrease in cash and cash equivalents | -326 | 297 |
Effect of foreign exchange rates on cash and cash equivalents | 9 | -9 |
Cash and cash equivalents at the beginning of the reporting period | 1,138 | 851 |
Cash and cash equivalents from disposal groups | - | -1 |
Cash and cash equivalents of deconsolidated companies | -4 | - |
Cash and cash equivalents of first-time consolidated companies | 8 | - |
Cash and cash equivalents at the end of the reporting period | 825 | 1,138 |
1. The comparative figures shown have been restated. | ||
Further information can be found in the Annual Report, Note 3 to the Consolidated Financial Statements. | Appendix | 49 |
Financial calendar & further Information
Financial calendar | Further information |
https://ir.uniper.energy | |
07 May 2020 |
Quarterly Statement January - March 2020
20 May 2020
2020 Annual Shareholders Meeting (Duesseldorf)
11 August 2020
Interim Report January - June 2020
10 November 2020
Quarterly Statement January - September 2020
50
Uniper - Contact your Investor Relations team
Udo Giegerich
Executive Vice President
Group Finance&Investor Relations
udo.giegerich@uniper.energy
Adam Strzyz
Head of Investor Relations (SVP)
adam.strzyz@uniper.energy
Carlo Beck
Manager Investor Relations
+49 211 4579 4402 carlo.beck@uniper.energy
Peter Wirtz
Manager Investor Relations
+49 211 4579 4414 peter.wirtz@uniper.energy
Anna Denisova
Manager Investor Relations
anna.denisova@uniper.energy
Eva Christin Göttges
Manager Investor Relations
eva-christin.goettges@uniper.energy
51
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Certain information in this presentation is based on management estimates. Such estimates have been made in good faith and represent the current beliefs of applicable members of management of Uniper. Those management members believe that such estimates are founded on reasonable grounds. However, by their nature, estimates may not be correct or complete. Accordingly, no representation or warranty (express or implied) is given that such estimates are correct or complete.
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In giving this presentation, neither Uniper nor its respective agents undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any information or to correct any inaccuracies in any such information.
This presentation contains certain financial measures (including forward-looking measures) that are not calculated in accordance with IFRS and are therefore considered as "Non-IFRS financial measures". The management of Uniper believes that the Non-IFRS financial measures used by Uniper, when considered in conjunction with (but not in lieu of) other measures that are computed in accordance with IFRS, enhance an understanding of Uniper's results of operations, financial position or cash flows. A number of these Non-IFRS financial measures are also commonly used by securities analysts, credit rating agencies and investors to evaluate and compare the periodic and future operating performance and value of Uniper and other companies with which Uniper competes. These Non-IFRS financial measures should not be considered in isolation as a measure of Uniper's profitability or liquidity, and should be considered in addition to, rather than as a substitute for, net income and the other income or cash flow data prepared in accordance with IFRS. In particular, there are material limitations associated with our use of Non-IFRS financial measures, including the limitations inherent in our determination of each of the relevant adjustments. The Non-IFRS financial measures used by Uniper may differ from, and not be comparable to, similarly-titled measures used by other companies.
Certain numerical data, financial information and market data (including percentages) in this presentation have been rounded according to established commercial standards. As a result, the aggregate amounts (sum totals or interim totals or differences or if numbers are put in relation) in this presentation may not correspond in all cases to the amounts contained in the underlying (unrounded) figures appearing in the consolidated financial statements. Furthermore, in tables and charts, these rounded figures may not add up exactly to the totals contained in the respective tables and charts.
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Uniper SE published this content on 10 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2020 06:43:02 UTC