Rwe Ag · XETR:RWE
Rwe — ESG Presentation (May 2010)
34 slides from Rwe's sustainability presentation, May 2010
Slide 1: RWE – A Sustainable Investment
RWE – A Sustainable Investment Company Presentation May 2010
Slide 2: What's new?
What‘s new? > RWE‘s long-term climate protection target on RWE‘s carbon dioxide exposure now referring to CO2 emissions per megawatt hour (MWh) of electricity generated. > Executive Board compensation system adapted to sustainability and employee satisfaction > KPIs and targets defined for each of R
Slide 3: 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 4: Ten areas for action of our CR strategy (1)
Ten areas for action of our CR strategy (1) Our objectives are based on both what society expects of us as an responsible energy supplier and on those issues which in our view are crucial to our sustainability as a business. Area for action We are committed… KPI Target Climate Protection …to signifi
Slide 5: Ten areas for action of our CR strategy (2)
Ten areas for action of our CR strategy (2) Area for action We are committed… KPI Target Demographic …to ensuring the long-term availability of Demography Index Average position among change sufficient numbers of appropriately skilled comparable companies personnel. Supply chain …to avoiding reputat
Slide 6: ESG and financial data at RWE Group
ESG and financial data at RWE Group Financial Environmental 2009 2008 2007 2009 2008 2007 External revenue €million 47,741 48,950 42,507 Specific CO2 mt/MWh 0.796 0.768 0.866 emissions EBITDA €million 9,165 8,773 7,915 Share of % 3.5 2.4 2.4 renewables1 Operating result €million 7,090 6,826 6,533 Ne
Slide 7: 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 (country): UK (country): Power produced in 20091) in TWh Power produced in 2009 in TWh Renewables 3.6 Other 1.9 Renewables 1.0 Other 0.2 Gas 11.7 Nuclear 33.9 Total Total 147.5 Gas 15.8 27.7 Hard coal 31.1 Lignite 65
Slide 8: Prepared for post-Kyoto: Our generation portfolio
Prepared for post-Kyoto: Our generation portfolio is set to be 75 % “zero or low carbon” by 2025 Capacity 2009 Capacity 2025: ~65 GW Pump storage, other Pump storage, other RWE generation mix (capacity in %) Renewables Renewables Lignite & hard coal Gas 75% Nuclear Lignite & Nuclear hard coal Gas Ou
Slide 9: Continuous investment commitment: €28 bn capex programme 2010 – 2013
Continuous investment commitment: €28 bn capex programme 2010 – 2013 €7.0 bn p.a. Committed capex +/- 10% 95% Other €100m p.a. 80% 55% 50% Upstream €1,000m p.a. Renewables €1,400m p.a. 2010 2011 2012 2013 Up to half of annual capex remains flexible in outer years CEE €900m p.a. Netherlands/ German v
Slide 10: Focus on low carbon organic growth and efficiency enhancement
Focus on low carbon organic growth and efficiency enhancement Day to day investments 9.5 Mainte- thereof grid 4.6 nance 9,5 Growth and replacement projects 18.5 Electricity generation Hard coal and lignite plants 4.5 Upgrades Gas plants 3.6 Replace- approx. 4,5 Pump storage 0.1 ment 20% 0,9 Renewabl
Slide 11: Renewable Energy in RWE Group today
Renewable Energy in RWE Group today: A leading renewables generation position in Europe > 2.5 GW operational renewables assets RWE Group renewable energy capacity in (end 2009) account for roughly operation by technology and country (Accounting view1 + PPA, as of December 31, 2009) - 5% of the Group
Slide 12: We plan to increase the installed generation capacity significantly
We plan to increase the installed generation capacity significantly Capacity growth targets (in GW, pro rata) Ramp-up capacities until 2013 12 Assets in operation or under construction Target capacity: 4.5 GW > 10 10 Assets under construction 8 Assets in operation RWE Innogy 2.6 GW 6 4.5 4 1.72) 2.6
Slide 13: RWE Innogy's basis for organic growth: Our project pipeline
RWE Innogy’s basis for organic growth: Our project pipeline (as of 31 December 2009) Project pipeline by technology & status (electricity generation capacity in GW, accounting view + PPA1) 7.5 17.1 > Total pipeline with projects until 2020 amounts to 17.1 GWel – up by more than New Applications 30 %
Slide 14: Risk diversification across technologies, regions and support mechanisms
Risk diversification across technologies, regions and support mechanisms … generation capacity … electricity generation Biomass Onshore Wind RWE Innogy target portfolio by … Hydro Biomass Onshore Wind Offshore Offshore Wind Hydro Wind … country (electricity generation) … support mechanism (electrici
Slide 15: Integration of renewables
Integration of renewables Expanding installed renewable energy generation capacity poses new challenges, as electricity feed-ins fluctuate. More flexible > New builds of five large combined-cycle gas turbine (CCGT) power power plant portfolio stations with a combined capacity of 6,000 MW by 2012 > I
Slide 16: RWE to gain leadership 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 17: Managing CO2: physical measures complemented by financial optimisation
Managing CO2: We complement physical measures by comprehensive financial optimisation > Our large low carbon new-build programme as well as our investments in renewables will lead to substantial improvement of our CO2 intensity until 2013 > For phase 3 (2013-2020) we aim to reach a “market average”
Slide 18: Physical measures: New-build projects can reduce our CO2 exposure by some 14%
Physical measures: New-build projects can reduce our CO2 exposure by some 14 % by 2013 CO2 reduction by 2013 Shutdowns / New-build projects load factor reductions Relative Absolute Lingen 887 MW 0.34t/MWh Fossil mix 4 TWh 0.75t/MWh -0.41 t/MWh -2 m t p.a. BoA Neurath 2,100 MW 0.95t/MWh Lignite 2,160
Slide 19: Non-physical measures: Balancing CO2 risks
Non-physical measures: Balancing CO2 risks CDM/JI > Allowance to cover up to 100 million tons via CDM/JI projects > Secured projects to procure 75 million tons of CO2 (44 million tons of CO2 adjusted for project risks) > Average achieved project price below current market price for Certified Emissio
Slide 20: 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 internationall Key > Keep German nu
Slide 21: RWE's current Kyoto credit portfolio
RWE’s current Kyoto credit portfolio Projects by March 2010 Contract volume by technology Hydro 100 N2O HFC23 90 Energy Efficiency Wind 80 Biogas CMM 70 Biomass ERPA1 Methane avoidance 100 mill. certificates 60 Solar others 50 ERPA1 In Validation 40 In Validation Contract volume by region 30 China S
Slide 22: 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 23: 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 24: RWE has the energy to lead
RWE has the energy to lead SELECTED RESULTS OF IMPLEMENTATION (AS OF MAY 2010) OEM cooperations / end-customer 1 Technology and infrastructure build-up 2 products > German standard of plug interface e-car/charging > Daimler: pilot e-mobility Berlin – post worldwide largest integrated pilot project >
Slide 25: RWE Technology: Fast charging for the mass market
RWE Technology: Fast charging for the mass market AT HOME AND IN PUBLIC, CHARGE WHEREVER YOU’RE PARKING ANYWAY Fast > Full charge with RWE charging technology in less than 1 hour1) > Public charging post for approx. 44 kW1) charging power with two charging points > Quick-charging box for wall-mounti
Slide 26: The all-round no-worries package for private and fleet customers
The all-round no-worries package for private and fleet customers B2C BUSINESS MODEL e-mobility Product h h > RWE-developed, intelligent quick-charge Public quick- infrastructure system charging infrastructure > Plug & Charge: Pay and authenticate via charging cable > Mass market-capable Individual >
Slide 27: Flexible cooperation models for infrastructure partners
Flexible cooperation models for infrastructure partners B2B BUSINESS MODEL Partner products for infrastructure providers Installation of publicly accessible infrastructure (Public utilities and top companies) Provision by RWE, public utilities and municipalities Product structuring ongoing Provision
Slide 28: 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 5 August, 2009 version of the Code. As a result, RWE’s latest compliance declaration dated February
Slide 29: Sustainability is part of Executive Board Compensation
Sustainability is part of Executive Board Compensation > Payment of a 25% share of the bonus will be postponed for three years. > The systems has been adapted to bring it more in line with sustainable business development. > In April 2010, the Annual General Meeting endorsed the new Executive Board
Slide 30: In 2009, RWE has spent €2,229 million on environmental protection
In 2009, RWE has spent € 2,229 million1) on environmental protection Climate protection: €1,482m 66% Clean air: €345m 16% (e.g. operation of fluegas desulphurisation systems) Waste disposal: €172m 8% Water protection: €127m 6% (mainly wastewater treatment) Total: €2,229m Landscape conservation: €87m
Slide 31: Supply chain responsibility – hard coal
Supply chain responsibility – hard coal > Total volume of hard coal purchased in 2009: 13,170,832 metric tonnes 2 > Purchase of coal for power plants of RWE and Essent is done through RWE Supply & Trading. > The Code of Conduct is anchored in the entire sourcing process from RWE Supply & Trading and
Slide 32: RWE scores well in sustainability ratings
RWE scores well in sustainability ratings DJ Sustainability Index 2009 Vigeo 2009 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 Oe
Slide 33: 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 Unit Corporate Responsibility/ developments Targets Reporting Environmental Protection Assessment o
Slide 34: Further Information
Further Information RWE Annual Report 2009 www.rwe.com/ir RWE Corporate Responsibility Report 2009 www.rwe.com/responsibility Page 34