Uniper strives for a healthy balance between attractive cash returns and balance sheet stability. Uniper’s finance strategy rests on three cornerstones - dividend policy, free cash flow and a comfortable investment grade rating.
- Fixed dividend of about €200 mil. to be proposed for 2016 (c. € 0.55 per share)
- Thereafter, payout related to free cash from operations based on the success of business activities
- Neutral to positive free cash flows from operations post-dividends
- Based on our dividend policy, on the current outlook and taking the cash dilutive impact of the Yuzhno-Russkoye disposal into account we currently foresee an increase of around 15% in dividend level for 2017.
Free Cash flow
- Uniper aims at continuously optimising its free cash flow:
- Investments focused on maintenance
- Remaining growth projects financed from disposal proceeds
- Rigorous cost and optimisation measures
- Deleveraging from free cash flows and divestments
Capital structure and rating
- Uniper pursues a conservative finance strategy by targeting a comfortable investment grade rating
- Continuous management of capital structure and leverage
- Working capital requirements of the ongoing business are to be met by excess liquidity and credit lines
Top-management incentives are strongly aligned to the interests of the shareholders. Uniper’s management is committed to high standards concerning the transparency and the risk management within the scope of its corporate governance.
For the financial year 2016 and as a target for dividend payments, a fixed dividend will be proposed to shareholders. For the following years the dividend will be oriented at free cash from operations (FCfO). Overall, Uniper targets neutral to positive free cash from operations post dividends.
Uniper is carrying out measures to optimise its free cash flow on a continuous basis. To this end investment is focused on maintenance with additional rigorous cost and optimization measures being implemented. Remaining growth projects shall be funded by disposal proceeds.
Uniper’s goal is to generate neutral to positive free cash from operations after dividend payment. In combination with announced asset disposals of €2.0 bn this will allow Uniper to achieve its target leverage ratios by 2018. To this end Uniper’s current debt factor (ratio of economic net debt to adjusted EBITDA) shall be reduced to comfortably below 2.0x, and net financial debt to adjusted EBITDA ratio to below 1.0x. These ratios are in line with Uniper’s target of achieving a comfortable investment grade rating.
Uniper’s capital structure at the moment of listing differs from its past capital structure. In 2015, one-off effects, not accounted for in year-end figures, were taken into account to compute "pro-forma economic net debt". These effects include the divestment of "Nordstream I", the capital increase by E.ON as well as other effects arising from the resolution of finalised profit and loss statements and from the reduction of a loan from Fortum.
|in €bn||31 Dec 2015||Pro forma*
31 Dec 2015
|30 Jun 2016||30 Dec 2016||Target values|
|Asset Retirement Obligations (AROs)||1.0||0.9||1.0|
|Net financial position (NFP)||4.9||1.5||2.4|
|Economic Net Debt (END)||6.7||4.7||3.6||4.2|
|END / EBITDA**||3.9x||2.7x||2.0x||Comfortably below 2.0x|
|NFP / EBITDA**||2.9x||1.1x||Below 1.0x|
* Pro forma refers to the adjusted figures reported in the Combined financial statements of the Uniper Group for fiscal years 2015, 2014 and 2013
** EBITDA means adjusted earnings before interest, taxes, depreciation and amortization