value through sustain- able management As of May 2019 Disclaimer - PowerPoint PPT Presentation

Delivering long-term value through sustain- able management As of May 2019

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. All figures regarding the renewables business are based on pro forma combined innogy and E.ON publicly available data. The implementation of the transaction is still subject to conditions, including merger control clearances. RWE AG | A responsible investment | May 2019 Page 2

AGENDA 1 Company overview and strategic outlook 2 ESG performance Environmental Social Governance <> <> External recognition 3 RWE in sustainability indices and rankings RWE AG | A responsible investment | May 2019 Page 3

1 Company overview & strategic outlook Security of energy supply & sensible environmental management at the heart of RWE RWE AG | A responsible investment | May 2019 Page 4

1 Company overview and strategic outlook RWE at a glance RWE’s net generation capacity 1 Key facts  Leading European power generator 0.3 2.7 Nuclear Lignite Gas 2.8  Efficient and flexible power plant portfolio Hard coal Renewables  Strong global trading business 10.3 6 36.6 Pumped storage, other  Ongoing transformation into a leading GW 14.1 renewables player 6.5 € 1.5 bn 3% 1% adj. 18% 11% 12% EBITDA 3 15,556 UK 8.6 19% employees 2 22.5 Germany GW 78% GW 46% 13% € 11.7 bn 5% 3% Netherlands/ market 167 TWh Belgium 4.8 41% 51% cap 5 GW generated power 4 Note: Figures may not add up due to rounding differences. | 1 Net installed generation capacity excl. innogy as of 1 January 2019. | 2 Converted to full-time positions. Workforce at 2018 year- end excl. innogy. | 3 2018 EBITDA for RWE stand-alone. | 4 Power generation 2018 excl. innogy. | 5 End of fiscal year 2018. | 6 Including units in security reserve. RWE AG | A responsible investment | May 2019 Page 5

1 Company overview and strategic outlook RWE is reshaping its portfolio by transforming into a leading integrated renewable & conventional power generator Strategic outlook > On 12 March 2018 RWE and E.ON agreed to an extensive swap of assets and participations involving RWE’s stake in innogy > Formation of leading power producer in Europe with highly complementary combination of renewable and conventional generation > Attractive contribution of E.ON and Kelag stakes to RWE’s financial portfolio Operating business Financial portfolio European Power Supply & Trading Renewable Energy Lignite & Nuclear Stake in Amprion (25.1%) Respective business areas innogy’s gas storage Stake in E.ON (16.7%) E.ON stakes in nuclear from E.ON and innogy business power stations Gundremmingen (25%) and Emsland (12.5%) Stake in Kelag (37.9%) Additions to RWE portfolio from transaction (closing of complete transaction expected end of 2019). RWE AG | A responsible investment | May 2019 Page 6

1 Company overview and strategic outlook RWE’s prospering strategic outlook determined by transforming into Europe’s #3 renewables player Installed renewable capacity in Europe 1 Pro forma combined renewables capacity 2 RoW Germany 7% 20% US 9.1 GW 36% UK 24% 4% 5% Pro forma 4% combined Italy Iberia Benelux > No. 3 renewables player in Europe with well-balanced portfolio and strong position in U.S. onshore wind market > No. 2 offshore wind operator globally with 2.5 GW 2 in operation and 0.5 GW 2 under construction > Strong development pipeline in attractive growth markets and scope for efficiencies 1 Bloomberg New Energy Finance, as at 31 Dec 2018. 2 As at 31 December 2018. Pro rata view. Excludes RWE’s own renewable capacity. Excluding renewable portfolio of E.DIS and 20% in Rampion. RWE AG | A responsible investment | May 2019 Page 7

1 Company overview and strategic outlook Highly complementary renewables & conventional gene- ration portfolio is cornerstone for secure energy supply Pro forma combined electricity generation capacity 1 (as of 1 January 2019) Leading European generator Firm and flexible with diversified and balanced capacity 2.8 generation technologies 2.7 >80% 10.3 10.3 8.3 9.3 De-risking of portfolio with >60% of low CO 2 generation capacity 45.7 GW 6.5 7.3 Leading provider of reliable and 2.8 14.1 flexible generation capacity to balance intermittent production of renewables Low CO 2 generation capacity >60% Opportunity to extract value from enlarged portfolio through leading commercial asset optimisation platform Gas Lignite Hard coal Nuclear Renewables Other 1 RWE stand-alone plus E.ON’s and innogy’s renewables businesses. RWE AG | A responsible investment | May 2019 Page 8

1 Company overview and strategic outlook RWE stand-alone – Outlook for 2019 FY FY 2018 2019e € 1.2 bn – € 1.5 bn Adj. EBITDA € 1.5 bn - € 0.6 bn Adj. depreciation Slight increase (a.o. IFRS 16) - € 0.2 bn Adj. net financial result Stable development expected - € 0.1 bn Adj. taxes Stable development expected - € 0.1 bn Adj. minorities & hybrid Decline post call of hybrid in March 2019 € 0.3 bn – € 0.6 bn Adj. net income € 0.6 bn € 2.3 bn Net debt Significantly above 2018 € 0.70 € 0.80 Dividend (per share) Management target RWE AG | A responsible investment | May 2019 Page 9

2 ESG performance RWE committed to long-term sustainable value creation RWE AG | A responsible investment | May 2019 Page 10

2 ESG performance Sustainable Management creates value and provides our license to operate Our Corporate Responsibility (CR) focus areas We understand sustainable management as an integral part of our strategy and operations by which we contribute to the companies success. We belong to the UN Global Compact and support the UN Sustainable Development Goals Company Culture of Integrity & Appreciation Community Engagement Climate Protection CR creates value Security of energy supply Supply Chain Standards & critical infrastructure & Resources Environmental Protection & Natural Conservation RWE AG | A responsible investment | May 2019 Page 11

2 ESG performance Climate protection and biodiversity are focal points of our environmental policies Biodiversity/ > RWE’s Biodiversity Policy > Commitment to reduce CO 2 Emissions Recultivation emissions in line with exceeds statutory European and national regulations greenhouse reduction > No major environmental targets to support the UN accidents climate goals > Target to reduce CO 2 emissions in core markets by Environmental 55 to 65 million tonnes by performance 2030 vs. 2015 Compliance Waste (environmental) management > Group-wide > Comprehensive waste environmental management management in accordance system based on ISO 14001 with the regulations for reuse, recycling, recovery or > 100% coverage for disposal environmental management in 2018 Energy efficiency > No environmentally relevant incidents in 2018 > Investment in low-carbon technologies , e.g. CCGTs, batteries RWE AG | A responsible investment | May 2019 Page 12

2 ESG performance RWE’s significant CO 2 reductions aligned with European and national climate goals RWE’s reduction path for CO 2 emissions in core markets 1 – our target before Commission recommendations Conversion of Dutch hard coal Transfer of 1.5 GW of lignite Disposal and closure of coal Closure of Weisweiler power plants to biomass co-firing to stand-by reserve and final plants, e.g. Bergkamen, plant (1.8 GW) at end shut-down after 4 years Gersteinwerk of Inden mine by 2030 In million tonnes 180 -32.6% Before coal phase-out 160 recommendations by Commission 140 Reduction target 1 : 120 55 – 65 million tonnes vs. 2015 (equiv. 40 – 50%) 100 80 60 0 (…) 2012 2015 2018 2030 ... And beyond 1 Referring to RWE stand-alone portfolio, excluding Mátra in Hungary and Denizli in Turkey. Figures do not include a potential impact on the generation portfolio as a result of recommendations from the German Commission on Growth, Structural Change and Employment. RWE AG | A responsible investment | May 2019 Page 13