Slide 1: Delivering long-term value through sustainable management
Delivering long-term value through sustain- able management As of August 2018
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: Agenda
AGENDA 1 Company overview and strategic outlook 2 ESG performance Environmental <> Social <> Governance 3 Contribution to the UN Sustainable Development Goals & Rankings RWE AG | A responsible investment | August 2018 Page 3
Slide 4: Company overview & strategic outlook
1 Company overview & strategic outlook Security of energy supply & sensible environmental management at the heart of RWE RWE AG | A responsible investment | August 2018 Page 4
Slide 5: RWE at a glance
1 Company overview and strategic outlook RWE at a glance Financial highlights RWE stand-alone 2017 17,154 employees1 form RWE’s powerful workforce (in € million) 2,066 973 Adj. EBITDA Adj. Net income RWE’s net capacity2 (%) in core generation markets RWE’s production volumes3 (%): 191 TWh 3 11 3 4 1
Slide 6: RWE is reshaping its portfolio, transforming into a leading integrated renewable & conventional power generator
1 Company overview and strategic outlook RWE is reshaping its portfolio, 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 > Format
Slide 7: RWE's strategic outlook: transforming into Europe's #3 renewables player
1 Company overview and strategic outlook RWE’s prospering strategic outlook determined by transforming into Europe’s #3 renewables player Installed renewable capacity in Europe1 Pro forma combined renewables capacity2 RoW 7% 19% Germany US 36% 8.6 GW 24% UK 4% 6% Pro forma 4% combined Italy Iberia B
Slide 8: Highly complementary renewable & conventional generation portfolio are cornerstone for secure energy supply
1 Company overview and strategic outlook Highly complementary renewable & conventional gene- ration portfolio are cornerstone for secure energy supply Pro forma combined electricity generation capacity1 (as at 31 December 2017) Leading European generator Firm and flexible with diversified and balanc
Slide 9: RWE stand-alone – Outlook for 2018
1 Company overview and strategic outlook RWE stand-alone – Outlook for 2018 FY FY 2017 2018e €1.4 bn – €2.1 bn Adj. EBITDA €1.7 bn -€0.6 bn Adj. depreciation Stable development expected Significant improvement after redemption and buy back of hybrids in -€0.4 bn Adj. net financial result 2017 and im
Slide 10: ESG performance
2 ESG performance RWE committed to long-term sustainable value creation RWE AG | A responsible investment | August 2018 Page 10
Slide 11: Sustainable management is integral for long-term value creation
2 ESG performance Sustainable management is integral for long-term value creation > Biodiversity/Recultivation Environmental > Waste management performance > Energy efficiency > Compliance (environmental) > Emissions RWE committed > Supply chain & compliance Social (socio-economic) to long-term perf
Slide 12: Continuous emission reduction and responsible waste management
2 ESG performance Continuous emission reduction and responsible waste management > Commitment to reduce CO2 Biodiversity/ > RWE’s Biodiversity Policy Emissions emissions in line with Recultivation exceeds statutory European and national regulations greenhouse reduction > No major environmental targe
Slide 13: RWE's significant CO2 reductions aligned with European and national climate goals
2 ESG performance RWE’s significant CO2 reductions aligned with European and national climate goals RWE’s reduction path of CO2 emissions in core markets1 in million Conversion of Dutch hard coal Transfer of 1.5 GW of lignite Closure of Weisweiler power Reduction in load factors of tonnes plants to
Slide 14: Various low carbon projects in the pipeline. Pilot projects focus on new technologies
2 ESG performance Various low carbon projects in the pipeline. Pilot projects focus on new technologies Biomass Open-cycle gas turbine Battery storage systems Sector coupling > Conversion to biomass > Development of open- > Pilot and research projects > Assessment of power- co-firing of Amer 9 (80%)
Slide 15: Biodiversity footprint for recultivation shows big increase in ecology
2 ESG performance Biodiversity footprint for recultivation shows big increase in ecology Responsible recultivation with the objective of reinstating the development potential of the landscape while taking account of the typical conditions of the surrounding environment Major building blocks are refo
Slide 16: Awareness of macro-economic responsibility to society to provide secure & compliant energy supply
2 ESG performance Awareness of macro-economic responsibility to society to provide secure & compliant energy supply Secure energy Supply chain > Central management > Suppliers vetted on functions include security supply & security & compliance environmentally and management management (socio-economi
Slide 17: Promotion of hard coal supply chain standards
2 ESG performance Promotion of hard coal supply chain standards Overview of countries supplying hard coal Drive for responsible hard coal procurement - Procurement of majority of hard coal > Founding member of Bettercoal to improve in producer via international wholesale markets countries environmen
Slide 18: Ambitious targets and programmes to support equal opportunities and diversity
2 ESG performance Ambitious targets and programmes to support equal opportunities and diversity Group-wide initiatives and networks to enhance the focus on diversity topics (gender, age, cross-culture) > Engagement in ENEI1 network increases outward orientation & provides input on best practice dive
Slide 19: Companius supports & promotes social engagement of employees
2 ESG performance Companius supports & promotes social engagement of employees Customised opportunities Strategic goals > Within the scope of HR development > Promotion of social responsibility through employee measures commitment > To support team building and broaden employee skills > Development
Slide 20: Highlights of our governance performance
2 ESG performance Highlights of our governance performance Governance struc- ESG and HSE ture & diversity at governance > Covered by the Corporate Supervisory Board > Two tier governance Responsibility and HSE structure department, directly reporting > Diverse & experienced to RWE AG Executive Board
Slide 21: Two tier governance structure
2 ESG performance Two tier governance structure Executive Board Supervisory Board Tasks > Responsible for managing and steering the > Oversees the company’s Executive Board company and appoints its members > Represents company in dealings > Provides approval for major strategic decisions with third
Slide 22: Diverse and experienced Supervisory Board fully fulfils competence requirements
2 ESG performance Diverse and experienced Supervisory Board fully fulfils competence requirements Diversity at Supervisory Board Experience of Supervisory Board members Gender Experience profile of the Supervisory Board members covers all target areas as defined in the competence profile for Male th
Slide 23: Remuneration system consists of three components
2 ESG performance Remuneration system consists of three components ~164% Maximum remuneration 80% 100% (max. Strategic Performance Plan > Long-term, share-based compensation scheme Budget 200%) > Conditional on achievement of earnings indicator remuneration > Linked to performance of RWE shares > Pe
Slide 24: Bonus rewards annual economic performance as well as individual, collective and sustainability goals
2 ESG performance Bonus rewards annual economic performance as well as individual, collective and sustainability goals Bonus dependent on company as well as individual performance Company > Measured by degree of achievement of targeted adjusted EBIT performance > Target figure set by Supervisory Boa
Slide 25: Strategic Performance Plan oriented to the long-term success of the company
2 ESG performance Strategic Performance Plan oriented to the long-term success of the company Grant of performance shares: > Conditional allocation of performance shares based on contractually agreed budget > Final number determined by adjusted net income achieved by company in relation to target fi
Slide 26: Contribution to SDGs and Rankings
Contribution to SDGs and Rankings RWE - member of the UN Global Compact and committed to its principles RWE AG | A responsible investment | August 2018 Page 26
Slide 27: RWE contributes to the achievement of the UN Sustainable Development Goals
3 Contribution to SDGs and Rankings RWE contributes to the achievement of the UN Sustainable Development Goals RWE AG | A responsible investment | August 2018 Page 27
Slide 28: Committed to transparency and accountability
3 Contribution to SDGs and Rankings Committed to transparency and accountability RWE participates and receives recognition in leading sustainability ratings RWE’s ISS Environmental Overall 2017 rating: 58/100 & Social Quality Score1 2017: > Environment: 60 > Environmental Score: 4 (Benchmark: 30 – 8
Slide 29: Sustainability along the value chain
3 Contribution to SDGs and Rankings Sustainability along the value chain Suppliers We source responsibly 120 years We produce safely for RWE people and the environment Customer We provide a secure energy supply RWE AG | A responsible investment | August 2018 Page 29
Slide 30: Your contacts @RWE Investor Relations
3 Contribution to SDGs and Rankings Your contacts @RWE Investor Relations Important Links Financial Calendar Annual and Interim Reports & Statements 14 November 2018 http://www.rwe.com/ir/reports Interim statement on the first three quarters of 2018 Investor and Analyst Conferences 14 March 2019 htt
Slide 31: Powering. Reliable. Future.
Powering. Reliable. Future. RWE