Slide 1: Credit Investor Presentation
Credit Investor Presentation August 2023
Slide 2: Disclaimer
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 promi
Slide 3: Contents
Contents 1. Company overview 2. RWE Clean Energy 3. Energy transition 4. Credit and financial strength 5. Funding strategy August 2023 Credit Investor Presentation Page 3
Slide 4: What we focus on
RWE’s company overview What we focus on Operational track record What we focus on 2022 Financials WhatESG weprofile focus on • 34 GW green generation portfolio • Revenues: €38.4bn • ESG Ratings: A (MSCI) • >7 GW under construction • Adj. EBITDA: €6.3bn Top 20% of all Electric Utilities (ISS ESG) Top
Slide 5: RWE now with leading positions in all core markets
RWE’s company overview RWE now with leading positions in all core markets No No No No No Global US US UK Europe Offshore Solar Wind & Solar Wind & Solar Wind & Solar Note: Offshore market excluding China. August 2023 Credit Investor Presentation Page 5
Slide 6: Business model fully aligned with our strategic focus on the energy transition
RWE’s company overview Business model fully aligned with our strategic focus on the energy transition Core Non-Core Offshore Onshore Hydro/Biomass/ Supply Coal/Nuclear Wind Wind/Solar Gas & Trading • Global offshore • Onshore, solar and • Hydro, biomass and • Trading/origination • German lignite act
Slide 7: RWE is well-positioned to successfully deliver our Growing Green strategy
RWE’s company overview RWE is well-positioned to successfully deliver our Growing Green strategy Sustainability is at the heart of our strategy: our ambition is to reduce GHG emissions in line with a 1.5°C compliant pathway and to become net zero by 2040 RWE is perfectly positioned: vast experience
Slide 8: Contents
Contents 1. Company overview 2. RWE Clean Energy 3. Energy transition 4. Credit and financial strength 5. Funding strategy August 2023 Credit Investor Presentation Page 8
Slide 9: RWE's US portfolio strengthened by the formation of RWE Clean Energy
RWE Clean Energy RWE’s US portfolio strengthened by the formation of RWE Clean Energy following the acquisition of Con Edison Clean Energy Businesses Combined portfolio of • RWE expands US Wind/Solar footprint operating assets Onshore Wind to 8 GW of renewable energy projects 60% Solar Wind 8% Batte
Slide 10: Stepping up footprint and growth in highly attractive US renewables market
RWE Clean Energy Stepping up footprint and growth in highly attractive US renewables market Acquisition enables RWE to become one of the key leading RES players in the US with the largest pipeline in the region – US renewables growth expected to outpace Europe US renewables market has strong growth
Slide 11: The combined US Renewables business will accelerate growth
RWE Clean Energy The combined US Renewables Well balanced business will accelerate growth in 2030-green portfolio North America Flexible Offshore Onshore Wind Generation/ by technology wind 15% Massive >24 GW 25% Hydrogen increase in 24.5 35% >50 GW Onshore development combined US Solar GW 20% Wind
Slide 12: Acquisition and future growth fully funded
RWE Clean Energy Acquisition and future growth fully funded Earnings accretion Attractive valuation Transaction & growth fully funded EBITDA from operating enterprise value Capital increase via assets implies mandatory convertible multiple as (post PPA) of long-term August 2023 Credit Investor Prese
Slide 13: Contents
Contents 1. Company overview 2. RWE Clean Energy 3. Energy transition 4. Credit and financial strength 5. Funding strategy August 2023 Credit Investor Presentation Page 13
Slide 14: Leading the way to a green energy world with our Growing Green Strategy
RWE’s energy transition Leading the way to a green energy world with our Growing Green Strategy We are significantly accelerating our green growth programme: 2019 2022 2023 By 2030 Green net €1.5bn €4.4bn >€30bn investments Green net 25GW 29GW >35GW >50GW capacity Coal 13.4GW 8.3GW 0GW capacity Grow
Slide 15: Highlights of our renewable projects
RWE’s energy transition Highlights of TetraSpar Agri-PV our renewable projects ~ 4 MW F&E Floating wind Solar power and pilot plant agriculture Megabattery Sofia Limondale Hickory Park Selinus 117+ 1,4 GW 249 MWac 196 MWac 117 MW 25 MW RWE’s biggest offshore 872.000 modules 30 year Power Virtual cou
Slide 16: RWE accelerates its decarbonisation path by exiting coal in 2030
RWE’s energy transition RWE accelerates its decarbonisation path by exiting coal in 2030 Accelerated coal phaseout path by 8 years RWE, together with federal and state governments in Germany, has reached agreement to close its coal capacity development business by 2030 (compared to 2038 previously)
Slide 17: RWE Sustainability Strategy beyond Climate
RWE’s energy transition RWE Sustainability Strategy beyond Climate Nine priority topics WE GROW WE ACT WE CARE We grow our green business and create We preserve nature for future sustainable value by investing in technologies generations, considering scientific facts and leading the way to a green e
Slide 18: Remarkable ESG ratings improvement in the last 3 years
RWE’s energy transition Remarkable ESG ratings improvement in the last 3 years Corporate ESG Rating ESG Risk Rating ESG Corporate Rating Climate Change Rating Sustainability Rating AAA to CCC 0 to 100 (0 = top mark) A+ to D- 0 to 100 (100 = top mark) A to D 2020 2023 2020 2023 2020 2023 2020 2022 20
Slide 19: Contents
Contents 1. Company overview 2. RWE Clean Energy 3. Energy transition 4. Credit and financial strength 5. Funding strategy August 2023 Credit Investor Presentation Page 19
Slide 20: Key credit strengths
RWE’s credit & financial strength Key credit strengths • Diversified generation mix with growing RES platform and flexible generation strikes a perfect Integrated Business Model with balance for the current energy market environment 1 Diversified Generation Mix • Natural portfolio hedge with combina
Slide 21: Solid investment grade rating on the back of strong and sustainable financial performance
RWE’s credit & financial strength Solid investment grade rating on the back of strong and sustainable financial performance Credit rating • Stable & sustainable earnings backed by balanced financial position • Commitment to strong investment grade rating Long-term debt • Credit ratings continuously
Slide 22: Continued improvement in net debt position and a balanced mix of debt instruments
RWE’s credit & financial strength Continued improvement in net debt position and a balanced mix of debt instruments RWE net debt1 Debt split (2022) (€ billion) Commercial USD 6.9 paper 5.9 15% Bank 4% debt 4.4 96% EUR By 48% By type2 currency3 37% Bonds -0.4 -1.6 2019 2020 2021 2022 H1 2023 1 Net de
Slide 23: Various instruments secure our liquidity requirements
RWE’s credit & financial strength Various instruments secure our liquidity requirements and our ability to invest sustainably 30 June 2023 Cash and Marketable securities €17bn Bilateral bank facilities including guarantee facilities €11bn Commercial Paper Programmes1 €5bn $3bn Sustainability Linked
Slide 24: Stable and sustainable earnings profile
RWE’s credit & financial strength Stable and sustainable earnings profile Gross margin Gross margin split Gross margin split Wind/Solar Flexible generation 2021 – 2023 PPAs/Tax Credit Capacity payments/ Merchant 10% ancillary services 12+ 30% Merchant 25% 35% years 30% Certificates Weighted average
Slide 25: Key Messages – Delivering growth and value
RWE’s credit & financial strength Key Messages – Delivering growth and value Green Stable & Strict Robust liquidity investments sustainable balance sheet management 2021 – 2030 earnings management €30bn 70% secured / Commitment to strong €21bn net cash investments contracted cash-flow; investment gr
Slide 26: Contents
Contents 1. Company overview 2. RWE Clean Energy 3. Energy transition 4. Credit and financial strength 5. Funding strategy August 2023 Credit Investor Presentation Page 26
Slide 27: Issuances and maturities of RWE's bonds
RWE’s funding strategy Issuances and maturities of RWE’s bonds RWE’s bond maturity profile with Green Bonds RWE’s issuances as preferred financing tool for future growth 2021: 3x Green Bonds with a total volume of €1.85bn Green Bonds Hybrid Bonds at First Call Date Conventional Bond 2022: (€ million
Slide 28: RWE will be a frequent issuer of green bonds
RWE’s funding strategy RWE will be a frequent issuer of green bonds • Funding strategy serves RWE’s transition to a pure Type renewables player • Conventional bonds only on an exceptional basis • Driven by liquidity requirements and market 100% of Volumes circumstances proceeds will be allocated Ten
Slide 29: Green bonds foster our renewables investments
RWE’s funding strategy Green bonds foster our renewables investments Since the publication of our first Green Bond Framework in 2020, RWE has issued close to EUR5bn nominal value of Green Bonds Examples of allocated green projects from outstanding Green Bonds Offshore Wind Onshore Wind Solar & Stora
Slide 30: RWE Green Financing Framework 2023
RWE’s funding strategy RWE Green Financing Framework 2023 Alignment• with the ICMA RWE’s GreenGreen BondFramework Financing Principles 2021 1 and EU Taxonomy LMA Green Loan Principles is aligned 2023 with SDG 7.2: aligned ’increase substantially the share Fully alignedofwith the EU Taxonomy renewabl
Slide 31: RWE Green Financing Framework 2023 Use of Proceeds
RWE’s funding strategy RWE Green Financing Framework 2023 Use of Proceeds Green Bond Criteria EU Taxonomy UN SDG Principles category Climate change mitigation Expenditures relating to the construction, 4.1. Electricity generation using Renewable Energy development, acquisition, maintenance and solar
Slide 32: Leading the way to a green energy world
Leading the way to a green energy world Society Customers Employees Shareholders & Fixed Income We deliver the energy We supply green We offer a highly transition and will energy solutions attractive & international Investors become net zero by and support the working environment with We create 2040
Slide 33: Annex
Annex August 2023 Credit Investor Presentation Page 33
Slide 34: Agreement with German government sets the stage for accelerating RWE's coal exit
Agreement with German government sets the stage for accelerating RWE’s coal exit while ensuring security of supply Enhancement of Closure of RWE Support energy Strong emphasis short-term energy lignite power transition and on Just Transition security plants by 2030 security of supply Lifetime for 1.
Slide 35: Significant growth with additional 7.2 GW capacity
Significant growth with additional 7.2 GW capacity Development of our green generation portfolio GW pro rata +7.2 41.5 1.3 0.2 2.6 0.6 34.3 2.5 5.1 29.2 31 Dec 2022 Capacity 30 Jun 2023 Offshore Onshore Solar Batteries Flexible Total additions Wind Wind Generation & H2 Capacity in operation Projects
Slide 36: Financial highlights in full year 2022
Financial highlights in full year 2022 Very strong business performance with earnings exceeding outlook; adj. EBITDA of €6.3bn and adj. net income of €3.2bn €4.4bn net cash investments in green growth with more than 80% of capex taxonomy aligned; strict investment discipline Issued €2bn long term gr
Slide 37: Financial highlights in H1 2023
Financial highlights in H1 2023 Strong earnings development across all core segments, notably driven by strong Hydro/Biomass/Gas and Supply & Trading performance; full year guidance increased Marked green capacity growth of 5.1 GW and further 7.2 GW under construction Secured profitable growth in Of
Slide 38: Outlook for full year 2023 significantly raised on the back of strong H1 performance
Outlook for full year 2023 significantly raised on the back of strong H1 performance Group outlook FY 2023 Divisional outlook FY 2023 – adj. EBITDA (€ million) (€ million) Old Outlook New Outlook Old Outlook New Outlook Core adj. EBITDA 4,800 – 5,400 6,300 – 6,900 Offshore Wind 1,400 – 1,800 1,400 –
Slide 39: Economic net debt
Economic net debt Net assets/net debt 30 Jun 2023 31 Dec 2022 +/- Net debt definition (€ million) Cash and cash equivalents 8,523 6,988 1,535 • Net debt does not contain Marketable securities 8,175 13,730 -5,555 mining provisions, which Other financial assets 3,964 8,543 -4,579 essentially cover our
Slide 40: Net debt increases due to CEB acquisition, green growth and timing effects from hedging
Net debt increases due to CEB acquisition, green growth and timing effects from hedging activities Development of net debt in H1 2023 in € billion (+ net debt/- net assets) 5.9 0.2 3.1 0.8 2.7 -1.6 -5.5 6.3 Net debt Adj. operating Acquisition CEB Net cash Dividends Other changes in Changes in Net de
Slide 41: Your contacts at RWE
Your contacts at RWE Important Links Financial Calendar • Annual and interim reports & statements • 14 November 2023 Interim statement on the first three quarters of 2023 • Bonds at a glance • 28 November 2023 RWE Capital Market Day in London • Credit ratings • 14 March 2024 Annual Report for fiscal