Presentation. 13 May Results first quarter 2009

Transcription

1 Presentation 13 May 2009 Results first quarter 2009

2 Disclaimer This presentation for the first quarter 2009 is a translation of the Dutch presentation on the consolidated results for the first quarter 2009 of n.v. Nuon. Although this translation has been prepared with the utmost care, deviations from the Dutch presentation might nevertheless occur. In such case, the Dutch presentation on the results for the first quarter 2009 prevails. We, Nuon, the company, the Nuon group or similar expressions are used in this presentation as a synonym for n.v. Nuon and its subsidiaries. Nuon Energy or Nuon Energy Group refers to N.V. Nuon Energy (named n.v. Nuon PLB Holding in 2008), the top holding company of Nuon s production and supply company and its subsidiaries. Alliander refers to Alliander N.V. and Liander N.V. with their respective subsidiaries, which jointly form the network company. Liander refers to Liander N.V., the grid manager (named N.V. Continuon Netbeheer until December 2008). Parts of this presentation contain prospective information. These parts without exceptions may include unqualified statements on future operating results, government measures, the impact of other regulatory measures on all activities of Nuon as a whole, Nuon s shares and those of its subsidiaries and joint ventures in existing and new markets, industrial and macro-economic trends and Nuon s performance in these, and statements preceded or followed by or containing words such as believes, expects, anticipates or similar expressions. These prospective statements are based on the current assumptions concerning future activities and are subject to known and unknown factors, and other uncertainties, many of which are beyond Nuon s control, so that future actual results may differ significantly from these statements. This presentation for the first quarter 2009 has been prepared with due regard to the accounting policies applied in the preparation of the 2008 financial statements. This quarterly presentation does not contain all information prescribed by IFRS for full financial statements. To obtain a complete picture this presentation must therefore be seen in conjunction with the 2008 Annual Report of n.v. Nuon which can be found on All financial information shown throughout this presentation is unaudited. 2

3 13 May 2009 Overview

4 Highlights Net turnover increases 22% to EUR 2,231 million Gross margin increases 6% to EUR 728 million (mainly due to new gas production activities) Net profit decreases 26% to EUR 181 million Customer numbers slightly higher in the Netherlands, further growth in Belgium and Germany Vattenfall chosen as the strategic partner for Nuon Energy 4

5 Key figures EUR mln Key figures reported Movement '08 - '09 Net turnover 2,231 1,834 22% Operating profit % Profit after taxation % Key figures excluding incidental items and fair value movements Movement '08 - '09 Net turnover 2,171 1,805 20% Operating profit % Profit after taxation % 5

6 Financial highlights (1) Q EUR mln Net turnover Gross margin 1,834 22% 2,231 6% Operating expenses Operating profit % % (1) Reported 6

7 Development gross margin (12-month rolling) (1) EUR mln Gross margin % = Gross margin / net turnover 50% 45% 40% 35% 30% Q Q Q Q Q incl. realised trade results excl. realised trade results (1) Excluding incidental items and fair value movements 7

8 Product segmentation EUR mln Net turnover first quarter ,834 22% 2,231 15% % 1, % 257 Q Q Electricity including trade results and fair value movements Gas Heating and other products 8

9 Organisational segmentation EUR mln Net turnover first quarter 2009 (1) (2) 29% 34% -8% 1,300 1,682 1,211 1, Downstream Midstream Network company (1) Reported (2) Including intercompany transactions

10 Organisational segmentation EUR mln Operating profit first quarter 2009 (1) 21% -5% -30% Downstream Midstream Network company (1) Reported

11 Cash flows and Capex Q EUR mln Cash flow from operating activities Investments Free cash flow (1) (1) Free cash flow = Cash flow from operations Gross investments in intangible assets, PP&E and financial assets + Contributions received from third parties 11

12 Net debt EUR mln Net debt and solvency Solvency (1) 49.1% 43.2% 42.4% 544 1,408 1,442 1, , , March Dec March 2009 Gross debt Unrestricted cash Cash deposits for Letter of Credit facilities Net debt and investments for CBL liabilities (1) Solvency = Shareholders equity / Total assets 12

13 Unbundling General starting principles Keep financial unbundling simple Create sound financial starting positions Minimise impact on current CBL s Intercompany balances should be settled at actual split-up date 13

14 Pro forma key figures Alliander and Nuon Energy first quarter 2009 EUR mln Alliander Nuon Energy Operating income 300 Operating income 1,943 Operating result 97 Operating result 159 Profit after taxation 44 Profit after taxation 137 Total equity and liabilities 6,469 Total equity and liabilities 8,605 Equity 1,751 Equity 4,634 Interest-bearing debt 1,472 Interest-bearing debt 364 Current account Nuon-group 1,292 Current account Nuon-group -1,292 Cash position 393 Cash position

15 13 May 2009 Appendices

16 Incidental items and fair value changes Q EUR mln Q Q Incidental items included in operating profit from continuing operations Fair value movements financial instruments and derivatives Revaluation of a cross border lease related investment Cost related to Heat Act Foreign exchange result on a cross border lease related investment - -2 Total incidental items in operating profit from continuing operations Tax effect incidental items Release of company tax payable previous years - 12 Total incidental items included in profit after taxation

17 Results Q EUR mln Q1 '08 Q1 '09 Incid. excl Incid. excl Mov. Q1 '08 items incid. Q1 '09 items incid. '08 - '09 Net turnover 1, ,805 2, ,171 Other operating income Total operating income 1, ,831 2, ,203 20% Operating expenses -1, ,531-2, ,002 Operating result from continuing operations % Finance charges Share in result of associates and joint ventures Profit before taxation from continuing operations % Taxation Profit after taxation from continuing operations % Profit after taxation from discontinued operations Minority interests Profit after taxation attributable to Nuon's shareholders % 17

18 Gross margin Q EUR mln Q1 '08 Q1 '09 Incid. excl Incid. excl Mov. Q1 '08 items incid. Q1 '09 items incid. '08 - '09 Electricity % Gas % Heat and other % Total gross margin % 18

19 Operating expenses Q EUR mln Q1 '08 Q1 '09 Incid. excl Incid. excl Mov. Q1 '08 items incid. Q1 '09 items incid. '08 - '09 Cost of energy, raw materials & supplies 1,147-1,147 1,503-1,503 31% Operating expenses % Depreciation and impairments % Less: Production capitalised for own use % Total operating expenses 1, ,531 2, ,002 31% 19

20 Cash flow statement Q EUR mln Q Q Profit after taxation Adjustments for: Interest and similar income and expenses Income tax expenses Results after taxation associates and joint ventures -7-9 Depreciation and impairments Changes in working capital Changes in deferred tax, provisions, derivates and other Cash flow from operations Interest paid and received 5-38 Dividends received from associates and joint ventures - 15 Income tax paid Cash flow from operating activities Capital expenditures on property, plant and equipment Construction contributions received Investments in non-current intangible assets - -1 Proceeds from sale of non-current financial assets - 9 Cash flow from investing activities New/(repayment of) short-term interest-bearing liabilities and short term part of long-term debt New long term debt 2 - Repaid long term debt -2-8 Cash flow from financing activities Net cash flow Free cash flow

21 Balance sheet EUR bln Assets Shareholders' equity and liabilities March Dec March March Dec March 2008 Other current assets Cash and cash equivalents Non-current assets held for sale Financial fixed assets Intangible assets Property, Plant & Equipment Trade and other payables Other current liabilities Liabilities associated with assets held for sale Non-current liabilities Provisions Shareholders equity 21

22 Financial policy (1) Part of Nuon s overall policy and strategy Balance between shareholder returns and protection of debt providers Financial strength and discipline Flexibility to grow and invest Shareholders equity Financial policy Credit Rating Liquidity 22

23 Financial policy (2) Financial framework FFO (1) / Net debt: minimum 30% FFO Interest cover: minimum 5x Solid A rating profile Dividend policy Stable and increasing dividend Annual dividend of at least EUR 45 mln Pay-out: 45% of after-tax profit, adjusted for incidental items Minimum solvency of 35% (1) Funds From Operations = Profit after taxation (excluding incidental items and fair value movements) + Depreciation and impairments on PP&E and intangible assets 23

24 Ratios financial policy FFO (3) Interest cover (1) FFO (3) /Net debt % 101% n/a (2) min. 5x n/a (4) min. 30% (1) Interest cover: 12-month profit after taxation attributable to Nuon shareholders adjusted for incidental items and fair-value movements - plus depreciation property, plant and equipment and non-current intangible assets, plus net financial income and expenses, divided by net financial income and expenses (2) YTD 2008 the 12-month financial income and expenses present a positive result; as a consequence the ratio per 31 December 2008 is not applicable (3) Funds From Operations = Profit after taxation attributable to Nuon s shareholders (excluding significant incidental items) + depreciation and impairments of PP&E and intangible assets (4) Per 31 March 2008 the financial position results in a net cash position instead of a net debt position; as a consequence the ratio is not applicable 24

25 Financial position EUR bln Maturity profile gross debt EUR 1,836 mln (31 March 2009) 2 Credit facility (EUR 1.7 billion) >

26 Gross debt summary Total interest-bearing debt: EUR 1,836 mln (31 March 2009) Other 15% (1) Euro Commercial Paper 15% Green loans 11% Shareholder loans 5% Private & Bank loans 11% Euro Medium Term Notes 43% (1) Including debts of subsidiaries and finance leases 26

27 Funding summary EUR mln (31 March 2009) Bank facilities Amount Drawn Expiry date committed 3 year facility Alliander Nov year facility Nuon Energy Nov 2011 Issue programmes Size Used Euro Medium Term Notes Alliander Euro Commercial Paper Size per 27 March ,000 and as of 6 April 2009 used 2,050 Net debt summary Gross debt Unrestricted cash 544 Cash deposits to cover issued Letters of Credit facilities 56 Restricted Cash 390 CBL Investment 140 Total cash Add back restricted cash 390 Unrestricted cash and cash equivalents 740 Net debt

28 Cross-border leases Summary Transactions March 2009 Grids Generation Total CBLs 6 US leases 3 US leases Strip Risk (USD mln) Guaranteed by N.V. Nuon Yes No Summary Letters of Credit March 2009 (USD mln) Grids Generation Total Issued Additional LCs at A3/A Additional LCs at Baa1/BBB Additional LCs at current rating if privatisation of Nuon > 50%

29 Location of debt Interest-bearing debt EUR 1,836 mln (31 March 2009) N.V. Nuon Total EUR 257 mln Alliander Finance BV EUR 1,055 mln Division 1 Division 2 Division 3, etc. EUR 524 mln 29

30 Profitability ratios first quarter 2009 Ratios Reported Q Q Gross margin as a percentage of net turnover 37.5% 32.6% Opex as a percentage of net turnover 19.2% 19.0% Return on sales (ROS) 13.4% 8.1% Earnings per share (EPS) in Euro Ratios Excluding incidental items and fair value movements Q Q Gross margin as a percentage of net turnover 36.5% 30.8% Opex as a percentage of net turnover 18.8% 19.3% Return on sales (ROS) 12.9% 6.0% Earnings per share (EPS) in Euro

31 Ratios related to net turnover 12 months rolling Reported 46.3% 44.7% 41.0% 39.2% 22.8% 24.7% 26.1% 25.6% 17.1% 14.2% 12.4% 10.7% Gross margin as % of net turnover Opex as % of net turnover Return on sales (ROS) Excluding incidental items and fair value movements 43.9% 44.0% 41.3% 39.1% 22.9% 22.9% 23.8% 23.6% 15.1% 14.9% 12.4% 10.2% Gross margin as % of net turnover Opex as % of net turnover Return on sales (ROS) Q Q Q Q

32 Ratios ROIC and EPS 12 months rolling Reported 18.5% 15.5% 10.2% 8.9% Return on invested capital (ROIC) Earnings per share (EPS) Excluding incidental items and fair value movements 15.8% 16.2% 12.3% 10.6% Return on invested capital (ROIC) Earnings per share (EPS) Q Q Q Q

33 Before unbundling Present Shareholders NV Nuon Alliander Finance BV Nuon Energy Midstream Downstream Unbundling As per effective unbundling Alliander is planned to be merged into nv Nuon whereby at the same moment the parent company will only be renamed into Alliander NV and the name Nuon goes with Nuon Energy 33

34 After unbundling Vattenfall Present shareholders 49% 51% 100% Alliander Finance BV Midstream Downstream As per effective unbundling Alliander is planned to be merged into nv Nuon whereby at the same moment the parent company will only be renamed into Alliander NV and the name Nuon goes with Nuon Energy 34

35 Pro forma consolidated balance sheets Alliander and Nuon Energy as per 31 March 2009 EUR mln Alliander Nuon Energy Assets Non-current assets 5,514 4,409 Current assets 319 3,599 Cash and cash equivalnets Non-current assets held for sale Total assets 6,469 8,605 Shareholders' equity and liabilities Shareholders' equity 1,707 4,497 Profit after taxation Total shareholders' equity 1,751 4,634 Interest-bearing debt 1, Current account Nuon group 1,292-1,292 Other liabilities (1) 1,898 4,899 Total liabilities 4,662 3,971 Non-current liabilities associated with non-current assts held for sale 56 - Total shareholders' equity and liabilities 6,469 8,605 (1) Including deferred income (equalisation accounts) 35

36 Pro forma consolidated income statements Alliander and Nuon Energy first quarter 2009 EUR mln Alliander Nuon Energy Operating income 390 1,943 Cost of energy, raw materials and supplies 84 1,461 Operating expenses Depreciation and impairments Less: production capitalised for own use Total operating expenses 293 1,784 Operating result (EBIT) Finance charges Share in result of associates and joint ventures 4 5 Profit before taxation Taxation Profit after taxation operations

37 Outlook for 2009 The Management Board, in consultation with the Supervisory Board, has formulated the policy to not issue any statements with regard to future expected results. Accordingly the Management Board publishes quarterly reports, but does not issue any statements on the expected results for the year