Rwe Ag · XETR:RWE
Rwe — ESG Presentation (December 2009)
30 slides from Rwe's sustainability presentation, December 2009
Slide 1: RWE – A Sustainable Investment
RWE – A Sustainable Investment Company Presentation December 2009
Slide 2: Ten areas of action of our CR strategy
Ten areas of action of our CR strategy Area of action Our objectives Climate protection We will exploit to the full every economically feasible opportunity of reducing greenhouse gas emissions within our sphere of influence. Energy efficiency We will promote the efficient use of energy both among ou
Slide 3: ESG and financials at RWE: Data for 2008
ESG and financials at RWE: Data for 2008 Financial Environmental1) External revenue 48,950 € million CO2 (scope 1) 172.1 million t EBITDA 8,314 € million NOx 130,400 t Operating result 6,826 € million SO2 75,200 t ROCE 17.2 % Particle emissions 5,500 t Free cash flow 4,399 € million Water use 311 mi
Slide 4: Key factors for sustainable energy supply
Key factors for sustainable energy supply C Competitiveness C Provide cost-efficient European energy supply E Environmental compatibility Climate protection A Minimizing NOX / SO2 / dust emissions Preservation of resources E S S Security of supply Broad energy mix Wide range of technolog
Slide 5: RWE: A leading European power generator using a broad mix of energy sources
RWE: A leading European power generator using a broad mix of energy sources Germany: UK: Power produced in 20081) in TWh Power produced in 2008 in TWh Renewables 3.7 Other 1.9 Renewables 0.9 Other 0.5 Gas 12.9 Nuclear 49.3 Total Total 179.7 Gas 18.2 37.6 Hard coal 43.6 Lignite 68.3 Hard coal 18.0 14
Slide 6: Our strategy to reduce the impact of CO2 on our P&L in 2013
Our strategy to reduce the impact of CO2 on our P&L in 2013 Certificates to be Operating result Offsetting purchased 2008 – 2013 factors in million t p.a. Organic growth/ 160 – 170 +100 High earnings visibility AGR > Expected higher level of power C % and gas wholesale prices – 10 > New build to be
Slide 7: Less CO2: Our strategy to reduce our exposure physically and financially
Less CO2: Our strategy to reduce our exposure physically and financially > CO2-mitigation in RWE Group (before Essent): Physical and financial measures and potential (million t/a)1) 172 -72) 3) up to -7 -84) RWE up to -65) 144 planned Extension -82) up to -83) new-builds of lifetime CDM/JI Renewable
Slide 8: Our flexible new-build power plants will come into a market of unprecedented volatility
Our flexible new-build power plants will come into a market of unprecedented volatility Current status of new-build projects in Germany > RWE: 11 GW of new capacity under construction, thereof approx. 9 GW with special 50 designs for serving the more volatile market. Capacity (in GW) 40 Cancelled/st
Slide 9: Technology of today: Optimizing the generation fleet through state-of-the-art power plants
Technology of today: Optimizing the generation fleet through state-of-the-art power plants Niederaussem power plant 150 MW 300 MW 600 MW 1,000 MW BoA units units units unit Start 1963 1965 – 1971 1974 2003 η 31% 32-34% 35-36% >43% CO2 1.3 t/MWh 1.1 t/MWh 1.1 t/MWh 0.9 t/MWh Page 9
Slide 10: Technology of tomorrow: Increase in efficiency is the priority target for CO2 reduction
Technology of tomorrow: Increase in efficiency is the priority target for CO2 reduction 700°C power plant (hard coal & lignite) Lignite pre-drying plant at Niederaussem Efficiency increase of 4%pts possible Projects: COMTES700 – Component Test Facility for a 700°C Power Plant – initiated by a gr
Slide 11: RWE to gain leadership in Europe in virtually CO2-free power plant technology
Looking into the future: RWE to gain leadership in Europe in virtually CO2-free power plant technology RWE Power considers to develop and build a virtually CO2-free 450 MW-coal-fired IGCC1) plant including CO2 transport and storage to demonstrate the whole CCS2)-chain. The new power plant would be
Slide 12: Co-operation with BASF and Linde: Germany's first CO2 scrubbing plant near Cologne
Co-operation with BASF and Linde: Inauguration of Germany’s first CO2 scrubbing plant near Cologne Inauguration of Germany’s first CO2 scrubbing plant in August 2009: Dr Karl-Theodor zu Guttenberg, the then Federal Minister of Economics and Technology, and Dr. Juergen Ruettgers, State Premier of N
Slide 13: RWE's current Kyoto credit portfolio for 2008-2012
RWE’s current Kyoto credit portfolio for 2008-2012 Projects by September 2009 Contract volume by technology Hydro 100 N2O HFC23 90 Energy Efficiency Wind 80 Biogas CMM 70 Biomass Geothermal ERPA1) Solar mill. certificates 60 others 100 50 In 40 Validation ERPA1) Contract volume by region In 30 Valid
Slide 14: RWE and Essent form a leading renewables generation position in Europe
RWE and Essent form a leading renewables generation position in Europe (Accounting view + PPA, as of September 2009) > With 2.4 GW assets in operation RWE and Essent form a RWE and Essent combined projects by technology leading renewables generation position in North West Europe (generation capacity
Slide 15: RWE Innogy will be growing the business, but value creation is superior to additional megawatts
RWE Innogy will be growing the business, but value creation is superior to additional megawatts RWE Innogy growth targets RWE Innogy medium-term targets (capacity in operation or under construction – in GW, accounting view + PPA) > Capacity of 4.5 GW in operation or under construction by 2012. 12 As
Slide 16: Innogy's target portfolio: Risk diversification across technologies, regions and support mechanisms
Innogy’s target portfolio: Risk diversification across technologies, regions and support mechanisms … generation capacity … electricity generation Biomass Biomass Hydro Onshore wind RWE Innogy target portfolio by… Onshore Hydro wind Offshore wind Offshore wind … country (electricity generation) … su
Slide 17: We want to expand our nuclear generation capacity
We want to expand our nuclear generation capacity – for more growth, less CO2 and a regionally diversified portfolio Goal Keep nuclear option in Germany Expansion of nuclear energy-based generation portfolio in other markets Reduce CO2 exposure and grow more internationally Key Keep German n
Slide 18: We assist customers in increasing energy efficiency
We assist customers in increasing energy efficiency New RWE energy efficiency company In the supply area, a new company has been set up on 1 July 2009 to promote all energy efficiency efforts and energy services within the Group. RWE sees significant potential for business growth in this area, wit
Slide 19: Increasing energy efficiency – three examples
Increasing energy efficiency – three examples “5,000 Town Halls” project RWE assists municipalities in its German sales regions by bearing the costs of analyzing their energy consumption in these properties. Our aim is to encourage municipalities to modernize their town halls and other public bu
Slide 20: Among utilities, RWE sets the pace for e-mobility
Among utilities, RWE sets the pace for e-mobility SELECTED IMPLEMENTATION RESULTS (NOVEMBER 2009) Technology Infrastructure A OEM partnerships B C D Actual offers leadership partners/customers … > Daimler: Pilot in > De facto standard > APCOA / Sixt: > "E-package" Berlin – largest for interface Infr
Slide 21: Business model, with a focus on private and fleet customers
Business model, with a focus on private and fleet customers RWE BUSINESS MODEL (SCHEMATIC) Partnerships with infrastructure providers Mobility for private/fleet customers (e.g. public utilities) Access to full-coverage Provision and maintenance of infrastructure, automatic charging stations billing
Slide 22: More than 170 charging spots installed in Germany
More than 170 charging spots installed in Germany – Key infrastructure co-operations established CHARGING INFRASTRUCTURE SETUP Publicly accessible charging spots Charging stations at B2B partners Current B2B partners: Berlin 72 Essen 36 Dortmund/ Frankfurt/ 64 Hamburg/ other > By the end of 2010: A
Slide 23: RWE offers limited e-mobility packages in NRW: EV + charging station + electricity
RWE offers limited e-mobility packages in NRW: EV + charging station + electricity EXAMPLE FOR LIMITED OFFER TO PROMOTE E-MOBILITY Electric Vehicle RWE charging station RWE Autostrom Micro-Vett RWE 500 E Autostrom Charging + Box + Micro-Vett Fiorino E RWE Charging Post > Converted vehicles by > Fast
Slide 24: We are strongly committed to enhancing our human resources
We are strongly committed to enhancing our human resources We adhere to the principles of the International Labour Organisation (ILO). Occupational health and safety is a key issue for RWE: – In August 2006, the Executive Board adopted a uniform occupational health and safety policy. It calls on
Slide 25: We are a reliable partner in the communities around us
We are a reliable partner in the communities around us Mutual benefits drive our community engagement projects “RWE Youth Foundation” We help young people at risk to escape from a downward spiral to poverty and exclusion. "I Can Do It! " We prepare disadvantaged young people for an apprenticeship an
Slide 26: We attach great importance to effective and transparent corporate governance
We attach great importance to effective and transparent corporate governance RWE complies with all of the recommendations of the German Government Corporate Governance Code Commission issued in the August 8, 2008 version of the Code. As a result, RWE’s latest compliance declaration dated February
Slide 27: Protection of nature and enhancing biodiversity is a key element
Protection of nature and enhancing biodiversity is a key element to maintain acceptance and trust Recultivation of open-cast lignite mines: – We completely recultivate the mined-out areas in close co-operation with local inhabitants. We give back a reshaped landscape of highest standards. – Rhenis
Slide 28: In 2008, RWE has spent €2,115 million on environmental protection
In 2008, RWE has spent € 2,115 million1) on environmental protection Climate protection: €1,266m 60% Clean air: €353m 17% (e.g. operation of fluegas desulphurisation systems) Landscape conservation: €94m 4% (e.g. recultivation projects at Rhenish opencast mines) Water protection: €207m 10% Total: €2
Slide 29: RWE scores well in sustainability ratings
RWE scores well in sustainability ratings DJ Sustainability Index 2009 Vigeo 100 87 90 87 87 Member since 1999 90 84 79 80 73 70 63 60 56 56 53 50 RWE 50 Industry average 40 Best Score 30 20 10 0 Economic Environmental Social Total Dimension Dimension Dimension Carbon Disclosure Project 2009 Oekom R
Slide 30: Structure of CR management at RWE
Structure of CR management at RWE Executive Board of RWE AG Strategic decisions Objectives Recommendations CR Coordination Committee of Executive Board Members Operational decisions Uptake of relevant Group Environmental developments Targets Reporting Protection / Corporate Assessment of Respons