VERBUND AG,

Transcription

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2 VERBUND Full year results Vienna 05/03/2014

3 Paradigm shift in the European electricity market Strong expansion of electricity generation (new renewable and conventional power plants) and decrease of electricity demand lead to massive over-capacity in Europe Heavily subsidised new renewables push gas fired power plants out of the merit order system and put pressure on profitability of peak power plants Oversupplied CO2 market in combination with stagnating demand leads to low CO2 prices and to an unreasonable CO2 system Long term oil indexed take or pay gas contracts effect margins of gas fired power plants negatively Full cost of new entry by technology/ /MWh 45 CO 2 price; substitution rate (coal to gas)/ /t Lignite Coal Hydro Wind CCGT spot CCGT Solar contract Peak price ( 46/MWh) Base price ( 36/MWh) 45 Low electricity wholesale prices do not cover full costs Source: EUA (futures prices traded in the year before the supply) Page 3

4 Hydro coefficient and electricity supply Hydro coefficient (run-of-river) long-term average Generation from annual reservoirs/ GWh 1,358 1,241 1,218 1,138 1,112 1, Q (1.11) Q2 (1.07) Electricity supply +3,191 GWh (+6.3%) Hydropower: +458 GWh (+1.5%) Generation from storage power: 210 GWh Generation from acquired German hydropower: GWh Thermal Power: 469 GWh ( 10.4%) Pont-sur-Sambre and Toul +395 GWh CCGT Mellach 654 GWh Wind/Solar: +323 GWh Purchase from third parties: +2,878 GWh Q3 Q4 Q1 Q2 Q3 Q (4,663 GWh) (4,453 GWh) Electricity supply/ TWh Hydro power* 30.9 Thermal power 4.0 Wind/solar 0.6 Purchase 18.1 *volumes for holders of interests: 4.0 TWh (at cost) Page 4

5 Hedging volumes and sales Hedging volumes 1 / GWh FY 2012: 53.6/MWh Sales customers/ TWh Total sales equals to 50.3 TWh Resellers +5% ,396 6,906 3,201 1,491 Traders +7% 18.6 Consumers +6% ,872 23,053 26,284 27,477 29,539 Sales countries/ TWh Total sales equals to 50.3 TWh Austria +2% 24.7 Germany +11% 22.4 France +3% /12/12 31/3/13 30/6/13 30/9/13 31/12/13 Achieved contract price Hedged volumes Romania +195% 0.3 Others 14% 0.6 Open volumes 1 Own production excluding volumes for holders of interests (at cost), wind/solar and volumes resulting from pumping Page 5

6 At equity interests Turkey/ m Italy/ m Turkish asset has been classified as held for sale since December 2012 Closing of the transaction with E.ON completed on April 24 Austria/ m 2012 Negative effects from impairments of Sorgenia s Tirreno Power and Sorgenia Green Book value of Sorgenia is zero Off-balance sheet losses: 7.8m EKG and SSG sold KELAG (VERBUND share 35.17%) 34.0m ( 33.5m) Page 6

7 Non-recurring effects on P&L m Detail Effects from impairment tests CCGTs, renewables, hydro and grid -784 Other operating income Asset swap Zemm/Ziller liability 167 Personell expenses Restructuring programme -29 Expenses from the flood -20 Others Reversal of provisions segment Grid 28 Miscellaneous -5 Operating result Total -643 Effects from impairment tests Sorgenia, Ashta, Energie AG -463 Effects from business acquisition Asset Swap Result from equity interests Sorgenia -231 Others 9 Financial result Total 499 Taxes on income Positive tax effects from Italy and France 200 Page 7

8 Key figures (1) EBITDA/ m Group result/ m 1,070 1,235 1,296 Oneoff Oneoff EBITDA margin/ % Dividend; Payout ratio/ ; % Special dividend adjusted Payout ratio Page 8

9 Key figures (2) Operating cash flow/ m Net debt; Gearing/ m; % 830 1, ,050 3,312 3, Free cash flow (after dividend)/ m 2011 Investments/ m Page 9

10 Financial liabilities Debt maturity profile/ m 906 Financial liabilities/ bn JPY bond > Financial liabilities Book value Financial Liabilities: 3,652m Financial ratios Duration: 3.0 years Effective interest rate: 4.2% p.a. Uncommitted lines of credit: 592m Syndicated loan: 750m Interest mix 92% fixed interest rate 8% floating interest rate Currency mix 99% EUR 1% JPY Rating Standard & Poor s: A /stable outlook Moody s: Baa1/stable outlook Page 10

11 Outlook Sensitivities 2014 A change of 1% (generation from hydropower) or 1/MWh (wholesale price) either way would be reflected as follows in the operating result for 2014, other things being equal: Greater or less generation from hydropower: +/ 9.3m Wholesale price: +/ 9.0m Dividend proposal : 1 per share (basic dividend 0.55/share, special dividend 0.45/share) Payout ratio 2014: approx. 50% based on adjusted Group result Earnings outlook 2014: EBITDA of around 850m and Group result of around 150m based on an average generation from hydropower Hedging volumes / GWh 1 Volumes: Own production excluding volumes for holders of interests (at cost), wind/solar and volumes resulting from pumping Page ,961 2,229 31/12/ adjusted Group result ,495 5,158 Reconciliation to outlook 2014/ m Prices 31/3/13 Achieved contract price 43 Hydro volumes ,124 10,223 30/6/13 Open volumes 31 Grid ,504 15,978 30/9/ Gas ,963 19,516 31/12/13 Hedged volumes Group result 2014E

12 Strategy Page 12

13 VERBUND Strategy Technologies Focus on hydropower but investments into new plants only with premium on profitability Expansion of wind power investments into regulated renewables Restructuring of thermal power plants no further investments into thermal power plants: decision about sale, tolling agreement, mothballing or closure Expanding the regulated grid business investments into high voltage grid, no disposal Markets xxx Key markets Austria/Germany expansion of asset and consumer base Italy Sorgenia s focus: disposals, cost cutting and debt restructuring France Evaluation of measures to reduce cash outflows; preferred solution: sale of power plants Efficiency programme Cost savings of about 130m until 2015 Further disposal potential of 70m Retail market Expansion of retail volumes in Austria and Germany from 9.5 TWh to 11.1 TWh in 2018 Positioning VERBUND as a green industrial electricity provider Offering new services like energy management and e-mobility Page 13

14 Gas Restructuring Target: Significant reduction of cash outs Options Sale Tolling agreement Mothballing Closure CCGT Mellach (848 MW) 2014E 103 GWh generation 28m EBITDA contribution 30m EBIT contribution 32m Group result contribution VERBUND filed an application with the Austrian Cartel Court (Stop of gas procurement and payments) CCGTs PSS and Toul (842 MW) 2014E 1,404 GWh generation 28m EBITDA contribution 28m EBIT contribution 52m Group result contribution Page 14

15 Cost cutting project Target: Cost savings of about 130m until 2015 (E: 30m, 2014E: 40m, 2015E: 60m) Gradual reduction of 250 FTEs (appr. 10%) by means of partial retirement, package offers and natural churn without replacement Short term mergers and integration of 8 legal entities (e.g. consolidating hydro and wind businesses in one legal entity, eliminating special purpose vehicles and subsidiaries, consolidating services entities etc.) Immediate reduction of cost of maintenance and operations via strictly prioritized asset management and maintenance strategy Immediate reduction of other operating expenses via zero base budgeting and tight cost control processes Strict review of our project portfolio will further reduce the cost of feasibility studies Page 15

16 Growth capex : 1.5bn Hydropower Investment volume 370m 430 MW 1 pumped storage power plant Reißeck II (COD: 2014) New construction of run of river power plant Töging in Germany (additional capacity of 25 MW (COD: 2018) Efficiency increase measures 125m (part of maintenance capex) Additional 69 MW, 89 GWh Further project pipeline: 480 MW Limberg III, 89 MW Inn joint power plant, etc. Wind power Investment volume 45m 36 MW in Austria (COD: 2014) 21 MW in Austria (COD: 2015) Grid Investment volume 1.090m Projects based on grid development plan 1 VERBUND s share of total capacity: 284 MW hydro storage Page 16

17 Appendix Page 17

18 Income statement (continuing and discontinued business) m 2012 continuing discontinued Total Revenue 3.174, ,6 88, ,9 Electricity revenue 2.773, ,7 88, ,8 Grid revenue 343,8 385,2 385,2 Other revenue 56,9 163,6 0,3 163,9 Other operating income 81,6 238,6 0,3 238,9 Expenses for electricity purchases & use of fuels , ,0-84, ,1 Other operating & personnel expenses -592,1-661,3-28,0-689,3 Depreciation & amortisation -278,0-346,3-9,6-355,9 Effects from impairment tests -55,8-466,1-318,3-784,4 EBIT 900,2 498,5-351,4 147,1 Result from equity interests -48,6-211,3-211,3 Interest income/expense -146,0-155,2-155,2 Other financial result 20,1 22,9 22,9 Fin. result before eff. from imp. and ba -174,5-343,6-343,6 Effects from impairment tests -28,1-463,3-463,3 Effects from business combination -37, , ,4 Group result 389,3 579,9 579,9 Earnings per share ( ) 1,12 1,67 1,67 Page 18

19 Non-recurring effects influence EBITDA in m EBITDA reported 1,296 Zemm/Ziller supply contract 167 Restructuring measures 29 Flood 20 Grid provisions 28 Others 5 EBITDA adjusted 1,155 Page 19

20 Non-recurring effects influence Group result in m Group result reported 580 Effects from impairment testing 1,086 Effects from business acquisition 1,185 Zemm/Ziller supply contract 134 Sorgenia 231 Taxes 200 Others 7 Group result adjusted 385 Page 20

21 Balance sheet (short version) m 2012 Change Non-current assets % Current assets % Non-current assets held for sale % Total assets % Equity % Non-current liabilities % Current liabilities % Total liabilities % Page 21

22 Cash flow statement (short version) m 2012 Change Cash flow from operating activities 1, % Cash flow from investing activities % Cash flow from financing activities % Change in cash and cash equivalents % Cash and cash equivalents at the end of the period % Page 22

23 Electricity wholesale prices futures traded in 2012 declined on average by 12% (baseload and peakload) Quarterly futures (supply Q1 4/) decreased by 17% (base), 14% (peak) yoy; monthly futures (supply Jan-Dec ) decreased by 15% (base), 11% (peak) yoy spot market prices decreased by 11% (base) and 9% (peak) yoy Spot prices in were mainly affected by low coal and CO 2 prices, impact of subsidised renewables and low demand Power prices not expected to improve in the short term because of low demand, low CO 2 prices, overcapacities and growing impact of subsidised renewables Average futures prices/ /MWh Average spot prices/ /MWh Page 23 Base Traded 2011 Supply 2012 Source: EEX Base Source: EPEX 49.3 Traded 2012 Supply 37.8 Peak 69.0 Traded 2011 Supply 2012 Peak Traded 2012 Supply 48.7

24 Impairments (1) Gas exposure CCGT Mellach CCGT Toul CCGT Pont sur Sambre Book value 1/1/ 414 Book value 1/1/ 223 Book value 1/1/ 237 Impairment 270 Impairment 146 Impairment 173 * 0 * 2 * 3 Book value 31/12/ 144 Book value 31/12/ 75 Book value 31/12/ 61 Renewables Equity interest Sorgenia Wind farms in Austria Wind farm in Bulgaria Book value 1/1/ 621 Book value 1/1/ 92 Book value 1/1/ 26 Impairment 396 Impairment 26 Impairment 8 * 225 * 45 * 0 Book value 31/12/ 0 Book value 31/12/ 111 Book value 31/12/ 18 * Additions, disposals, reclassifications or depreciations Page 24

25 Impairments (2) Hydro R-o-r Kalsdorf & Gössendorf Newly acquired r-o-r Germany Grid High voltage grid Book value 1/1/ 71 Book value 30/4/ 2,152 Book value 1/1/ 1,114 Impairment 18 Impairment 87 Impairment 48 * 7 * 45 * 24 Book value 31/12/ 60 Book value 31/12/ 2,020 Book value 31/12/ 1,090 Interests Others Energie AG Book value 1/1/ 114 m Impairment Impairment * 6 42 Ashta 26 Others 10 Book value 31/12/ 66 * Additions, disposals, reclassifications or depreciations Page 25

26 Details to the capex plan Growth capex/ m Hydropower Wind power Grid Others Maintenance capex/ m Hydro Thermal Grid Page 26

27 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 Vera Sokulskyj Investor Relations Manager T +43(0) vera.sokulskyj@verbund.com Page 27