VERBUND AG,

Transcription

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2 VERBUND Resultsforquarters1-3/2016 Vienna, 09/11/2016

3 Results quarters 1-3/2016 Page 3

4 At a glance Influencing factors Water supply 7%-points above Q1 3/2015 and 1% above long-term average, decreased production from annual storage reservoirs ( 10.5%) Reduction of average achieved contract prices from 35.0 to 30.6 /MWh ( 12.6% vs. FY2015) One-off effect from the resolution of outstanding issues related to gas deliveries for the Mellach CCGT power plant Higher contributions from the grid segment (on adj. basis) Positive effects from the implementation of the cost cutting and efficiency improvement program Results and cash flows EBITDA 809,7 (+11.5%); Adjusted EBITDA 698.4m (+2.8%) Group result 339.9m (+48.7%); Adjusted Group result 276.4m (+12.7.%) Operating cash flow 657.6m (+13.1%) Free cash flow before dividend 489.8m ( 11.3%) Outlook 2016 increased EBITDA approx. 980m, Group result approx. 385m Dividend policy for 2016: approx. 30% of adjusted Group result of approx. 315m Page 4

5 Higher hydro output; declining contract price Hydro coefficient (run-of-river) long-term average Hedging volumes incl. options / TWh FY 2015: 35.0/MWh Q1 Q2 Q Q1-3/2015 (0.94) Q1-3/2016 (1.01) Electricity supply 45,072 GWh (+3,382 GWh, +8.1%) Hydropower: 23,798 GWh (+1,055 GWh, +4.6%) Generation from storage power: 3,187 GWh ( 375 GWh) Thermal Power: 707 GWh ( 856 GWh, 54.8%) CCGT Mellach: 329 GWh ( 80 GWh) Wind/Solar: 585 GWh ( 78 GWh, 11.7%) Purchase from third parties: 19,982 (+3,261 GWh) /9/ /12/ /3/16 Achieved contract price Open volumes /6/ /9/16 Hedged volumes 1 Hydro production excluding volumes for holders of interests (at cost) and volumes resulting from pumping. Page 5

6 Flexibility products System volatility in the European grid system increasing due to rapid development of new renewables Use of VERBUND power plants supplying flexible products for congestion management and reducing volatility Flexibility products: Control energy: Permanent balance between generation and consumption necessary to ensure grid stability (primary/secondary/tertiary control energy) Congestion management: All measures to prevent/counteract excess load flows Grid system services: Provision of energy/capacity for grid losses, disruption management, black-start capability etc. Intraday trading: Use of short-term volatility within one day to generate additional profits Capacity/cold reserve: Contractual reservation of capacity for grid operators Q1-3/2015 Actuals Q1-3/2016 Actuals FY2015 Actuals Guidance FY m 72m 148m 106m Page 6

7 Non-recurring effects on P&L in Q1 3/2016 m Detail Q1 3/2016 Q1 3/2015 Electricity revenue Arbitration verdict EVN -7 Other operating income Resolution gas contract Mellach 118 EBITDA Total Effects from impairment tests CCGT Mellach, hydro power plants and Romania -90 Operating result Total Other financial result Measurement of an obligation to return an interest reg. DKJ & option GKI Effects from impairment tests Ashta 1 Financial result Total 29-2 Taxes Effects above and goodwill amortization Germany 11 Minorities Effects above 3 Group result Total Page 7

8 Key financial figures (1) EBITDA/ m Group result/ m +12% % Reported Adjusted Reported Adjusted Q1-3/2015 Q1-3/2016 Q1-3/2015 Q1-3/2016 Margins/ % Additions/ m to tangible assets (without business combination) % EBITDA margin EBIT margin Q1-3/2015 Q1-3/2016 Q1-3/2015 Q1-3/2016 Page 8

9 Key financial figures (2) Operating cash flow/ m Free cash flow before dividend/ m % % 490 Q1-3/2015 Q1-3/2016 Q1-3/2015 Q1-3/2016 Net debt/ m Gearing/ % 3,685-11% , Page 9

10 Thermal restructuring - Update Thermal portfolio Austria Dürnrohr hard coal power plant stopped electricity generation as of final closure activities currently under implementation Mellach hard coal power plant will remain in operation to supply district heating to the city of Graz until 2020 CCGT Mellach Court confirmed legal opinion of VERBUND no obligation to keep CCGT Mellach as reserve plant Outstanding issues related to gas deliveries for the CCGT Mellach power plant resolved VERBUND is re-evaluating all options for the Mellach power plants site, including its sale Thermal portfolio abroad Sale of French CCGTs and exit Sorgenia completed in 2015 Expected results contribution excl. one-offs Austria m 2014A 2015A 2016E EBITDA EBIT Group result Page 10

11 Cost cutting and efficiency improvement program Old program: Cost cutting program with savings of 177m completed (+ 47m vs. initial target of 130m) New program: Target is to strengthen the free cashflow and to deleverage the company Strict cost management policy to ensure that the cost level as of 2015 regarding personnel- and other operating expenses is frozen until 2019 Further reduction of approx. 175 FTEs until 2020 by means of partial retirement, package offers and natural churn without replacement Significant reduction of growth and maintenance CAPEX program for the period by approx. 500m compared to the previous plan for the same period Reduction of payout ratio from 50 % to 30% of adjusted group result for financial year 2016 Page 11

12 Reduction of CAPEX programme Growth capex / m (total of 396m) Maintenance capex / m (total of 561) 71 1 Hydro Grid Others Hydro Grid Others Page 12

13 Financial liabilities Debt maturity profile/ m Financial liabilities/ bn -12% >2023 HY 2015 HY 2016 Financial liabilities Book value Financial liabilities: 2,344m Financial ratios Duration: 4.0 years Effective interest rate: 3.7% p.a. Uncommitted lines of credit: approx. 788m Syndicated loan: 500m Interest mix 89% fixed interest rate 11% floating interest rate Currency 100% EUR Rating Standard & Poor s: BBB/stable outlook Moody s: Baa2/stable outlook Page 13

14 Outlook Payout ratio 2016: approx. 30% based on adjusted Group result of approx. 315m Earnings outlook 2016: EBITDA of approx. 980m and Group result of approx. 385m based on an average generation from hydro and windpower in the fourth quarter of 2016 Sensitivities 2016 A change of 1% (generation from hydropower/ windpower) or 1/MWh (wholesale price) either way would be reflected as follows in the group result for 2016, other things being equal: Greater or less generation from hydropower: +/ 1.0m Greater or less generation from windpower: +/ 0.1m Wholesale price (hydropower): +/ 0.4m Hedging volumes incl. options / TWh /12/15 Open volumes 1 Hydro production excluding volumes for holders of interests (at cost) and volumes resulting from pumping /3/16 30/6/16 30/9/16 Achieved contract price in /MWh /6/ /9/16 Hedging volumes incl. options / TWh Hedged volumes include 7.9 TWh of an average price of 28.8/MWh. 9.9 M-t-M as of 20/10/2016: Hedged volumes M-t-M as of 20/10/2016: Hedged volumes include 0.9 TWh of an average price of 22.5/MWh. Page 14

15 Appendix Page 15

16 Non-recurring effects influence EBITDA in m EBITDA reported 810 Resolution gas contract Mellach 118 Arbitration verdict EVN 7 EBITDA adjusted 698 Page 16

17 Non-recurring effects influence Group result in m Group result reported Impairment CCGT Mellach Impairments Hydro power plants 10 Impairments windparks Romania 57 Other impairments 0 Arbitration verdict EVN 5 Resolution gas contract Mellach 89 Measurement of an obligation to return an interest DKJ 25 Option GKI 4 Tax effect goodwill amortization Group result adjusted Page 17

18 Income statement m Q1-3/2015 Q1-3/2016 Total Revenue 2, ,122.8 Electricity revenue 1, ,719.4 Grid revenue Other revenue Other operating income Expenses for electricity purchases & use of fuels -1, ,085.3 Other operating & personnel expenses EBITDA Depreciation & amortisation Effects from impairment tests EBIT Result from equity interests & oth. interests Interest income/expense Other financial result Effects from impairment tests Financial result Taxes Group result Minorities Earnings per share ( ) Page 18

19 Balance sheet (short version) m Change Non-current assets ,8% Current assets ,3% Total assets ,6% Equity ,0% Non-current liabilities ,5% Current liabilities ,3% Total liabilities ,6% Page 19

20 Cash flow statement (short version) m Q1-3/2015 Q1-3/2016 Change Cash flow from operating activities ,1% Cash flow from investing activities Cash flow from financing activities ,2% Change in cash and cash equivalents Cash and cash equivalents at the end of the period ,1% Page 20

21 Investor relations team Andreas Wollein Head of Group Finance and Investor Relations T +43(0) andreas.wollein@verbund.com Martin Weikl Investor Relations Manager T +43(0) martin.weikl@verbund.com Stefan Wallner Investor Relations Manager T +43(0) stefan.wallner@verbund.com Page 21