Investor Presentation As of August 2020
Disclaimer This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialisation of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements. Investor Presentation Page 2 August 2020
Our energy for a sustainable life We all need electricity – children as well as adults, small companies as well as large ones. Wherever there is electricity, there is light, warmth and communication, production, medical care and mobility. Electricity is life. Investor Presentation August 2020
Creating value in the renewable energy world Investment highlights Uniquely positioned to benefit from the energy transition Attractive growth opportunities in renewable energy Strict focus on value creation and shareholder return Strong commitment to sustainable development goals Highly motivated team incentivised to deliver strategic targets Investor Presentation Page 4 August 2020
Business model fully aligned with our strategic focus on the energy transition Core Coal/Nuclear • German lignite Offshore Onshore Hydro/Biomass/ Supply operations; mines wind wind/Solar Gas & Trading and plants • German hard coal • Global offshore • Onshore and solar • Hydro, biomass and • Trading/origination plants activities operations in gas plants in • Gas & LNG • German nuclear Germany, UK, • Europe & APAC • Commodity power plants Netherlands • Americas solutions • Holding in Dutch • Kelag stake • Principal EPZ (nuclear) investments • Gas storage business GW g/kWh Installed capacity 1 Carbon factor 2 Share of coal in Group revenues 1 Pro rata installed capacity of core business. | 2 Calculated for pro forma generation portfolio of core business. | Note: Figures for FY 2019. Investor Presentation Page 5 August 2020
Decarbonisation is an integral part of our strategy CO 2 Target to achieve CO 2 neutrality for our Neutral million global generation portfolio by 2040 tonnes Fully supportive of Paris Climate Agreement Proven track record of carbon emission reductions 2012 2019 2030 2040 Investor Presentation Page 6 August 2020
Our commitment to the UN SDGs goes beyond carbon reduction and RWE receives recognition in leading sustainability ratings Seven SDGs were defined as material in relation to our business activities • 27% and 19% • Leading operator of • Strong employer • Focus on storage • Strong commitment • Recultivation • Strict compliance women in 1st and wind and solar with ~ with workforce of technologies to to global climate programme with requirements with 2nd management ~9 GW installed more than 20,000 support the energy goals focus on RWE’s Code of level 1 capacity people transition biodiversity Conduct • Target to be carbon • Member of the • Highly efficient and • Regional support for • Part of High-Tech neutral by 2040 • Increase in ecology • Member of 2020 Bloomberg flexible power plant structural change Gründerfonds III in renaturalised Bettercoa l to Gender Equality portfolio and energy since 2017 mining areas promote standards Index (GEI) transition in hard-coal supply chain 68 out of 100 2 A (from AAA to CCC) C+ (from A+ to D-) 54 out of 100 (12 th out of 30 utilitites) B (Climate Change) 1 Below the Executive Board of RWE AG. | 2 Sustainalytics ESG Rating. Investor Presentation Page 7 August 2020
H1 2020 Earnings & Operations Successful first six months of the year August 2020, H1 Earnings call Investor Presentation August 2020
Successful first half 2020 – continuous improvement of renewables pipeline and FY outlook confirmed • Adj. EBITDA for core business up ~9% to €1.5bn versus pro forma 2019, adj. EBITDA of RWE Group at €1.8bn FY2020 outlook and dividend target of €0.85 per share confirmed. Adj. EBITDA for core • business and Group to be at the upper end of guidance Net debt at ~€7.8bn at the end of June in line with expectations. Leverage factor of 3.0x (net • debt/core adj. EBITDA) at year end envisaged Final step of transaction with E.ON closed. Full legal & HR integration completed • Broad market entry France: Onshore Wind/Solar development pipeline of 2.7 GW to be • acquired from Nordex German Coal Phaseout Act becomes law - clear path for RWE on how to exit coal • Investor Presentation Page 9 August 2020
Deal to acquire Nordex’s 2.7 GW European Onshore Wind/Solar development pipeline underpins future growth ambitions We strengthen our European market presence in Onshore Wind/Solar Market entry in France, an attractive renewables • market with ambitious build-out targets by 2030 Experienced team of more than 70 professionals • ~1.8 GW Onshore and ~0.4 mostly based in France will join RWE upon completion > 0.1 GW Solar development of the transaction pipeline French support scheme: • Well balanced pipeline in France, Spain, Sweden and 20yrs index-linked Poland across different development stages – 2-sided CfD commissioning of approx. 500 MW by 2025 >0.01 Approx. 230 MW with secured CfDs or CR2017 tariffs • Closing expected before year end 2020 following • ~1.9 receipt of customary approvals European Markets with RWE Onshore ~0.4 Wind/Solar assets in operation GW from Nordex development pipeline Investor Presentation Page 10 August 2020
Adj. EBITDA of core business on the rise to €1.5bn in H1 Core adj. EBITDA H1 2020 vs. H1 2019 pro forma, € million +9% 1,497 1,377 • Excellent wind conditions in Q1 push Offshore 322 Wind earnings to high level in H1 Supply & Trading 461 324 Capacity additions and good wind conditions • Hydro/Biomass/Gas 221 strengthen earnings at Onshore Wind/Solar 273 Onshore Wind/Solar 244 • Increase in result at Hydro/Biomass/Gas mainly due to GB capacity payments 585 Offshore Wind 490 Supply & Trading puts in a strong performance • -7 -39 Other/Consolidation H1 2019 H1 2020 core adj. EBITDA core adj. EBITDA pro forma Adj. EBITDA for RWE Group , incl. Coal/Nuclear amounts to €1,807 million (+18%) in H1 2020 Note: pro forma adj. EBITDA according to new business segments and inclusion of assets acquired from E.ON for full FY2019. Investor Presentation Page 11 August 2020
Further investment decisions for onshore and solar projects of ~200 MW – on track to reach >13 GW target Wind/Solar installed capacity increases to 8.9 GW and further 3.1 GW under construction/FID H1 2020 GW pro rata >13.0 FID for Hickory Park solar farm in US • 1.1 (196 MW), with co-located storage 0.9 0.9 (40 MW). Expected COD 2021 8.9 8.7 1.3 0.2 • Further FIDs for smaller Onshore/Solar/ 0.9 Offshore 0.4 Onshore Battery projects in NL, PL, IE taken 0.5 Solar 1.2 Onshore Agreement for Lease secured for UK • 0.1 Solar Awel y Môr Offshore wind farm (300 MW) Dublin Array offshore project (300 MW) in • Ireland fast tracked. Expected COD 2026 Floating offshore demonstration project • Installed Changes Installed COD COD COD Residual Target of 10-12 MW in Maine, US capacity capacity 2020 2021 2022 target 2022 Projects under 31 Dec 31 Mar 31 Dec 2019 30 Jun 2020 construction/FID 19 20 Note: Additional 30 MW installed capacity from batteries as well as battery projects of 109 MW under construction/FID. | Excluding capacity addition from the Nordex development pipeline. Rounding differences may occur. Investor Presentation Page 12 August 2020
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