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November 2015

Forward Looking Statement

RWE Facts & Figures 2015 contains certain forward-looking statements within the meaning of the US federal securities laws.

Especially all of the following statements

> Projections of revenues, income, earnings per share, capital expenditures, dividends, capital structure or other financial items

> Statements of plans or objectives for future operations or of future competitive position

> Expectations of future economic performance; and

> Statements of assumptions underlying several of the foregoing types of statements are forward-looking statements. Also words such

as “anticipate”, “believe”, “estimate”, “intend”, “may”, “will”, “expect”, “plan”, “project”, “should” and similar expressions are intended to identify

forward-looking statements. The forward-looking statements reflect the judgment of RWE’s management based on factors curren-tly known to it.

No assurances can be given that these forward-looking statements will prove accurate and correct, or that anticipated, projected future results

will be achieved. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially

from expectations. Such risks and uncertainties include, but are not limited to, changes in general economic and social environment, business,

political and legal conditions, fluctuating currency exchange rates and interest rates, price

and sales risks associated with a market environment in the throes of deregulation and subject to intense competition, changes in the price and

availability of raw materials, risks associated with energy trading (e.g. risks of loss in the case of unexpected, extreme market price fluctuations

and credit risks resulting in the event that trading partners do not meet their contractual obligations), actions by competitors, application of new

or changed accounting standards or other government agency regulations, changes in, or the failure to comply with, laws or regulations,

particularly those affecting the environment and water quality (e.g. introduction of a price regulation system for the use of power grid, creating a

regulation agency for electricity and gas or introduction of trading in greenhouse gas emissions), changing governmental policies and regulatory

actions with respect to the acquisition, disposal, depreciation and amortisation of assets and facilities, operation and construction of plant

facilities, production disruption or interruption due to accidents or other unforeseen events, delays in the construction of facilities, the inability to

obtain or to obtain on acceptable terms necessary regulatory approvals regarding future transactions, the inability to integrate successfully new

companies within the RWE Group to realise synergies from such integration and finally potential liability for remedial actions under existing or

future environmental regulations and potential liability resulting from pending or future litigation. Any forward-looking statement speaks only as

of the date on which it is made. RWE neither intends to nor assumes any obligation to update these forward-looking statements. For additional

information regarding risks, investors are referred to RWE’s latest annual report and to other most recent reports filed with Frankfurt Stock

Exchange and to all additional information published on RWE’s Internet web site.

Content

RWE Group

Introduction 5

Market Data 14

Regulation 20

RWE Generation

Introduction 22

Portfolio 24

Emissions 43

Hard coal 45

Lignite 46

Nuclear 52

Market Data 59

Regulation 66

RWE Supply & Trading

Introduction 68

Gas Midstream 71

Market Data 72

RWE Innogy

Introduction 75

Market Data 78

Regulation 82

RWE Downstream operations

Overview 85

RWE Deutschland

Introduction 89

Market Data 92

Grid 100

Regulation 104

Essent

Introduction 109

Market Data 111

RWE npower

Introduction 113

Market Data 115

RWE East

Introduction 117

Market Data 121

Investor Relations 124

Further Information 125

Chart No. Chart No.

RWE Group

http://www.rweimagebank.com/fileadmin/assets/4/103704.jpg

RWE Group RWE Generation RWE S & T RWE Innogy RWE Downstream operations RWE Deutschland Essent RWE npower RWE East Investor Relations

No.1 in the German electricity market

No.3 in the German gas

market

RWE today: leading positions in core markets1

Introduction

No.1 in the Dutch electricity market

No.3 in the UK electricity

market

1 Market position of the RWE Group in terms of sales, 2014; RWE Annual Report 2014.


The RWE Group

RWE is one of Europe’s five leading electricity and gas companies.

Through our expertise in lignite production, in electricity generation from gas,

coal, nuclear and renewables, and in energy trading as well as electricity and gas

distribution and supply, we are active at all stages of the energy value chain.

Around 60,000 employees supply over 16 million electricity customers and

7 million gas customers with energy, both reliably and at fair prices. In fiscal

2014, we recorded approximately €48 billion in revenue.

Europe is our market:

In terms of sales, we are No. 3 in electricity and No. 5 in gas. In Germany, the

Netherlands and the United Kingdom, we are among the largest suppliers of both

fuels. In the Czech Republic, we are No. 1 in the gas business. We also have

leading positions in other markets in Central Eastern and South Eastern Europe.

Despite difficult framework conditions, we want to play our part in the continued

development of the European energy system, proving that we are trustworthy

and high performing. We are investing in the expansion of renewable energy and

the modernisation of network infrastructure. In addition, we take advantage of

opportunities in the market which arise due to new customer demands by offering

a wide range of innovative energy products and services.

No.3 in the European electricity

market1

Introduction

As of 31 December 2014; RWE Annual Report 2014.

1 Market position of the RWE Group in terms of sales, 2014; RWE Annual Report 2014.


Established market position in electricity and/or gas

at one or several stages of the value chain

Market presence in the generation of

electricity from renewables

Market presence in the generation and/or supply of

electricity

RWE today: One of Europe`s leading utility

Where RWE is active (as of September 2015)

Introduction


RWE Group fully integrated along the value chain

Upstream

Exploration and production

Raw

material

production

Power generation

Energy

trading/

gas midstream

Networks Supply

Lignite Conventional

generation

Renewable

energy

RWE

Generation

RWE

Generation

RWE

Supply & Trading

RWE

East

RWE

East

RWE

Innogy

RWE Deutschland

RWE East

RWE npower

Essent

Midstream

Transportation

and storage

Downstream

Distribution and retail

Electricity Gas Electricity Gas Energy+ Energy+

Introduction


Peter Terium

Chief Executive Officer since

1 July 2012

Deputy Chairman of the RWE AG

Executive Board from

1 September 2011 to 30 June 2012

Appointed until 28 February 2021

Dr. Rolf Martin Schmitz

Deputy Chairman of the Executive

Board of RWE AG and Chief Operating

Officer since 1 July 2012

Member of the Executive Board of

RWE AG since 1 May 2009

Appointed until 31 January 2019

Dr. Bernhard Günther

Chief Financial Officer since

1 January 2013

Member of the Executive Board of

RWE AG since 1 July 2012

Appointed until 30 June 2017

Uwe Tigges

Chief Human Resources Officer since

1 January 2013

Appointed until 31 December 2020

Board and reporting segments

RWE Group

Conventional

Power

Generation

RWE Generation

Supply/

Distribution

Networks

Germany

RWE Deutschland

Supply

Netherlands/

Belgium

Essent

Supply United

Kingdom

RWE npower

Central Eastern

and South

Eastern Europe

RWE East

Renewables

RWE Innogy

Trading/

Gas Midstream

RWE Supply &

Trading

Internal Service Providers

> RWE Consulting

> RWE Group Business Services

> RWE IT

> RWE Service

As of March 2015.

Introduction


Unregulated

business 59%

Regulated

business 41%

Attractive regulated portfolio: medium term 40-50% of

operating result derived from regulated activities

Unregulated

business 63%

Regulated

business 37%

€ 4,017

million

€ 7,131

million

EBITDA (2014) Operating result (2014)

Introduction


Key statements on RWE by the rating agencies

Standard & Poor's (BBB, “negative outlook")

Moody's (Baa2, “negative outlook")

> On 23 October 2015 Moody’s revised its rating view for RWE

to „Baa2/negative outlook“ from „Baa1/negative outlook“.

> The downgrade to Baa2 reflects RWE’s weak business

prospects as a result of low power prices and commodity prices

as well as reduced earnings from its UK supply business.

Moody’s took into account the increasing likelihood of at least a

partial externalization of nuclear liabilities.

> Moody’s expects that RWE will continue to take measures to

defend its financial profile, including cost cutting measures,

divestments and reduced capex.

> The rating also takes into account that RWE will increasingly

derive a higher proportion from lower risk activities such as

regulated networks and renewables.

> The negative outlook reflects ongoing pressure on RWE as a

result of the challenging operating environment and a degree of

political uncertainty as to the pace and scale of prefunding of

nuclear liabilities.

> On 27 August 2015 S&P revised its rating view for RWE to

„BBB/negative outlook“ from „BBB+/negative outlook“.

> The downgrade reflects the persistent pressure on power prices

in Central Europe linked to the low commodity price

environment. In addition the political environment in Germany

remains adverse for RWE. Although the threat of a climate levy

has abated, RWE's lignite operations remain exposed to political

risk in Germany, in light of national elections scheduled in 2017

and national CO2 reduction targets.

> Nevertheless RWE’s business profile is seen as “strong”,

supported by the good diversification of its overall business mix,

by the growing weight of power and gas distribution in Germany,

by the stability of low capital expenditure-intensive supply

operations in Germany, and by the targeted growth in renewable

generation.

> RWE’s financial risk profile is viewed as “significant” as it profits

from its satisfactory, albeit weakened, cash flow generation from

operations, and its commitment to reduce financial debt to align

its financial profile with expected future cash flow generation.

Introduction


1 Including capacities of power stations not owned by RWE that we can deploy at our discretion on the basis of long-term agreements. These generation capacities amounted to

4,351 MW (previous year: 6,424 MW), of which 2,151 MW were based on hard coal (previous year: 4,259 MW).

RWE power plant capacity by technology

Other 9% 4.2 GW

Nuclear 8% 4.1 GW

Renewables 8% 3.7 GW

Gas 32% 15.6 GW

Hard coal 21% 10.5 GW

~49 GW1 plant capacity

RWE Group

Lignite 23% 11.1 GW

Introduction

As of 31 December 2014.


RWE Group electricity production by primary

fuel and electricity purchases

77.2

31.7 38.3

10.1 2.7

64.8

Lignite Nuclear Gas Renewables

RWE power plants

Electricity procured from power plants that are not owned by RWE that

we can deploy at our discretion on the basis of long-term agreements

1 The difference between 273.1 billion kWh of power generation output and 258.3 billion kWh of electricity sales is due to grid losses and own use.

Pumped

storage, oil,

other

Electricity

purchases

Hard coal

Billion kWh ~ 273 billion

kWh1 electricity production

RWE Group

48.3

12.9

Introduction



RWE: No. 2 in European electricity generation

Share in EU 27 power generation (2014)

EdF 19.3%

RWE 6.9%

Vattenfall 5.7%

E.ON 5.1%

Enel 4.8%

EnBW 1.9%

CEZ 2.1%

Iberdrola 2.7%

ENGIE 4.1%

Others 47.4%

3,018 billion kWh1

1 Net power generation.

Market Data

Source: RWE analysis, July 2015.


2

9

10

24

RWE’s share in European electricity generation

markets

Market share (in-house generation, excluding electricity purchased from third parties)

Germany1

Netherlands/

Belgium

UK

Central Eastern

and South

Eastern Europe2

1 Including contracted generation.

2 Countries included: Czech Republic, Hungary, Poland, Slovakia.

Source: ENTSO-E, RWE.

%

Market Data



47

51

81

199

215

258

261

363

529

736

EnBW (GER)

Verbund (AT)

Fortum (FIN)

Vattenfall (SWE)

Iberdrola (ESP)

RWE (GER)

ENEL (ITA)

ENGIE (FRA)

EdF (FRA)²

E.ON (GER)

Total electricity sales volume1 (billion kWh), 2014

1 Last completed fiscal year. If applicable, includes sales in Non-EU countries as well as Wholesale/Trading.

2 Estimate.


The largest electricity companies in Europe

Market Data


8

14

10

23

Central andEastern Europe

UK

Netherlands

Germany

RWE in European electricity downstream markets

Market share 2014

(sales to end-customers and redistributors)

RWE’s electricity customers by country

6,693

2,176

328

3,387

2,116

895

265

Germany Netherlands Belgium UK Hungary Poland CzechRepublic

% thousands

1 Central and Eastern Europe: Czech Republic, Hungary and Poland.


~16 million electricity customers

1

Market Data



The largest gas companies in Europe

Total gas sales volume1 (billion kWh), 2014

281

319

594

686

862

945

1,161

RWE (GER)

Gas Natural (ESP)

Wintershall (GER)

ENGIE (FRA)

Gasterra (NED)

ENI (ITA)

E.ON (GER)

1 If applicable, includes sales in Non-EU countries as well as Wholesale/Trading.


Market Data


RWE in European gas downstream markets

1,290

1,969

211

2,169

1,397

Germany

Netherlands

UK

Central and Eastern

Europe1

Germany Netherlands Belgium Czech

Republic

UK

RWE’s gas customers by country

thousands

32

5

11

11

Market share 2014

(sales to end-customers and redistributors)

%

>7 million gas customers

1 Central and Eastern Europe: Czech Republic and Slovakia.


Market Data



Major regulatory measures in RWE's core markets

Market design/unbundling Energy efficiency CO2 reduction Renewables Conventional generation

EU New energy market design

(wholesale and retail markets,

Capacity Remuneration

Mechanisms [CRM])

Consultation and sector

inquiry in 2015

New legislation in 2016

Implementation of 2030 targets for CO2 reduction, RES and Efficiency Regulation on emissions of

air pollutants:

1) New standards for

Large Combustion

Plants (BREF LCP)

2) National Emissions

Ceilings – Review of

Directive

Energy Efficiency

Directive

– possible review in 2016

ETS reform:

1) Market Stability

Reserve

2) Review of ETS

Directive

RES Directive

– possible review in

2016

Germany Evolution of the energy-only-

market („EOM 2.0“)

Implementation of a capacity

reserve

National Energy Efficiency

Action Plan

Climate Action

Programme 2020

NRW Climate

Protection Plan

2016 Amendment

to the REA

Future auctioning

scheme

Nuclear Final Storage

Regulation

UK Energy Market Reform (EMR) Green Deal Review:

Financial framework for

avoiding upfront costs

Carbon Tax Levy Exemption

Certificates Removal

FiT Review

CfD

RO Review

IED Implementation

TransmiT

Review of transmission

access

ECO (Energy Company Obligation) Review

Reduction of carbon emissions and financial support

of energy efficiency improvements

Netherlands Energy Market Reform –

legislation package STROOM

Introduction of a National

Energy Efficiency Fund

SDE+ (Stimulering

duurzame

energieproductie)

Secondary regulation for

efficiency requirements of

coal fired power stations

Execution of National Energy Agreement

Major regulatory measures in the European utility

markets

Regulation

RWE Generation


Introduction

RWE Generation

Our pan-European energy company, RWE Generation, has one of the largest

power portfolios in the world, with over 40 GW of generating capacity. The

company is a wholly-owned subsidiary of RWE AG.

RWE Generation brings together the international expertise and experience of

Essent, RWE npower and RWE Power to form one company which provides you

with power 24/7.

We have pooled all our technology and capability into one company to enable us to

provide affordable, safe power to millions of homes across Europe every day. Our

combined expertise allows us to think ahead and create secure options for the

future of energy in Europe and beyond.

Our broad energy mix includes biomass, hard coal, lignite, nuclear power, gas and

hydro. This provides us with a diverse portfolio of generating technology, enabling

us to provide a secure and flexible energy supply in an increasingly competitive

market.

~ 44 GW generation capacity


RWE Generation – key figures

Key figures 2014

External revenue (€ million) 1,888

EBITDA (€ million) 2,522

Operating result (€ million) 979

Workforce1 14,776

Hard coal 9,661

Other 4,050

Renewables 0,238

Nuclear 4,054

Lignite 10,291

Gas 15,217

Generation capacity as of 31 Dec 2014 (MW)

Power generation 2014 (billion kWh)

Gas 37.4

Nuclear 31.7

Pumped storage, oil, other 2.7

Renewables 1.2

Hard coal 44.6

Lignite 71.8

14,776 employees

44 GW 189

1 Converted to full-time positions.

~ ~

Introduction


Electricity production of RWE Generation by region

Germany

135.11

billion kWh

Netherlands/Belgium

17.2

billion kWh

UK

1 Including electricity from power plants not owned by RWE that we can deploy at our discretion on the basis of long-term agreements.

In fiscal 2014, it amounted to 15.9 billion kWh, of which 12.9 billion kWh were generated by hard coal-fired power plants.

Gas 23%

Hard coal 67% Gas 80%

Renewables 1%

Nuclear 23%

Hard coal 19%

Lignite 53%

Hard coal 20%

33.5

billion kWh

Other 2%

Renewables 3%

Nuclear 7%

Portfolio


Gas 2%


Major power plants of RWE Generation in Germany

Dortmund

26 MW

Bochum

21 MW

2

3

1 Emsland B, C, D

1,837 MW

4 Dormagen

586 MW

Gundremmingen

2,572 MW

Emsland

1,336 MW

1

2

Fabrik / KW Nord

11 MW1

KW Süd (Goldenberg,

Berrenrath, Frechen)

205 MW1

6

5

1

3

2 Neurath

4,168 MW

Weisweiler

1,800 MW

Frimmersdorf

562 MW

4 Niederaussem

3,430 MW

Karnap

38 MW

1 Schluchseewerk

870 MW

Köpchenwerk

153 MW

1

2

Ibbenbüren

794 MW

Westfalen C

284 MW

Gersteinwerk

608 MW

1

2

3

2

2

1

3

1 2

4

6

4 5

1

3

2

5 Gersteinwerk

1,285 + 112 MW

5 2

Bergkamen

367 MW

4

4

Gas

Nuclear

Others

Hydro

Lignite

Hard coal

1 1

Westfalen E

764 MW

5

5

Portfolio

As of December 2014.

1 3

1 Nettoengpassleistung


Name: Pembroke Place: Pembroke, Wales Fuel: Gas Net Capacity: 2,181 MW Year of commission: 2012

Name: Didcot B Place: Didcot, Oxfordshire Fuel: Gas Net Capacity: 1,440 MW Year of commission: 1996 – 1997

Name: Staythorpe Place: Staythorpe, Nottinghamshire Fuel: Gas Net Capacity: 1,752 MW Year of commission: 2010

Name: Little Barford Place: St. Neots, Cambridgeshire Fuel: Gas Net Capacity: 721 MW Year of commission: 1994

Name: Littlebrook D Place: Dartford, Kent Fuel: Oil Net Capacity: 1,140 MW Year of commission: 1982 – 1984

Major power plants of RWE Generation in the UK

Name: Aberthaw B Place: Aberthaw, Wales Fuel: Hard coal Net Capacity: 1,554 MW Year of commission: 1971 – 1979

Name: Great Yarmouth Place: Great Yarmouth, Norfolk Fuel: Gas Net Capacity: 398 MW Year of commission: 2001

Portfolio



Major power plants of RWE Generation in the

Netherlands

Name: Eemshaven A+B Place: Eemshaven Fuel: Hard coal Net Capacity: 1.554 MW Year of commission: 2014

Name: Bio-centrale Cuijk Place: Cuijk Fuel: Biomass Net Capacity: 25 MW Year of commission: 1999

Name: Claus C Place: Maasbracht Fuel: Gas Net Capacity: 1,304 MW Year of commission: 2012

Name: Claus A Place: Maasbracht Fuel: Gas Net Capacity: 610 MW Year of commission: 1977

Name: Swentibold Place: Geleen Fuel: Gas Net Capacity: 245 MW Year of commission: 1999

Name: Amercentrale Place: Geertruidenberg Fuel: Hard coal, Biomass Net Capacity: 1,254 MW Year of commission: 1980 – 1993

Name: Moerdijk II Place: Moerdijk Fuel: Gas Net Capacity: 426 MW Year of commission: 2012

Name: Moerdijk I Place: Moerdijk Fuel: Gas Net Capacity: 348 MW Year of commission: 1996

Portfolio



Overview of capacity measures in RWE’s power plant

portfolio (as of October 2015)

1 Net nominal capacity, rounded.

2 Summer mothballing between April and September 2015.

3 In times of market tightness mothballed plants might return temporarily to the system.

4 Continuous operation decided for 2015.

Measure Plant MW1 Fuel Location Date

Decom-

missioning

Amer 8 610 Hard coal NL Q1-2016

Goldenbergwerk 110 Lignite DE Q3-2015

Westfalen C2 285 Hard coal DE Q1-2016

Gersteinwerk K2 610 Hard coal DE Q1-2017

Long-term

mothballing3

Claus C 1,300 Gas NL Q3-2014

Moerdijk 2 430 Gas NL Q4-2013

Gersteinwerk F 355 Gas – steam turbine DE Q3-2013

Gersteinwerk G 355 Gas – steam turbine DE Q2-2014

Weisweiler H 270 Topping gas turbine DE Q3-2013

Weisweiler G 270 Topping gas turbine DE Q3-2013

Mid-size units 35 Gas NL Q1-2013

Summer

mothballing

Emsland B4 360 Gas – steam turbine DE Q2-2014

Emsland C4 360 Gas – steam turbine DE Q2-2014

Termination

of contracts

Confidential 2,960 Hard coal DE Q4-2013 –

Q2-2015

Total 8,310 MW

Portfolio


RWE’s power plant portfolio in MW

Germany

UK

Netherlands

Poland

Italy

Turkey

Croatia

Czech Republic

Hungary

France

Switzerland

8,504

Belgium

Hydro

Wind

Renewables

Nuclear

11,914

459

29,467

45

37

192

198

45

951

67

787

Portfolio

Lignite

Hard coal

Gas

Oil


RWE’s Generation division’s power plant portfolio (I)

Power plant

Country

Operating

company

Commissioned

Net

capacity

RWE's legal

consolidation

stake

RWE's

economic

stake

Partner

Stake

in

MW

%

MW

%

MW

%

Lignite

Frimmersdorf Germany RWE Generation 1966,1970 562 100.0 562 100.0 562

Neurath Germany RWE Generation 1972–1976 2,068 100.0 2,068 100.0 2,068

Neurath (BoA 2&3) Germany RWE Generation 2012 2,100 100.0 2,100 100.0 2,100

Niederaussem Germany RWE Generation 1965–1974 2,486 100.0 2,486 100.0 2,486

Niederaussem (BoA1) Germany RWE Generation 2002 944 100.0 944 100.0 944

Weisweiler Germany RWE Generation 1965–1975 1,800 100.0 1,800 100.0 1,800

Refining plants (KW Süd ,

Fabrik / KW Nord) 1

Germany

RWE Generation

various

216

100.0

216

100.0

216

Total lignite 10,176 10,176 10,176

Nuclear

KKW Emsland Germany RWE Generation 1988 1,336 87.5 1,336 87.5 1,169 E.ON 12.5

Gundremmingen B Germany RWE Generation 1984 1,284 75.0 1,284 75.0 963 E.ON 25.0

Gundremmingen C Germany RWE Generation 1984 1,288 75.0 1,288 75.0 966 E.ON 25.0

Total nuclear 3,908 3,908 3,098

Hard coal

Gersteinwerk Werne Kv2 Germany RWE Generation 1984 608 100.0 608 100.0 608

GW Bergkamen A Germany RWE Generation 1981 717 51.0 717 100.0 717 Steag 49.0

Ibbenbüren Germany RWE Generation 1985 794 100.0 794 100.0 794

Westfalen C Germany RWE Generation 1963, 1969 284 100.0 284 100.0 284

Westfalen E Germany RWE Generation 2014 764 77.0 764 77.0 588 municipal utilities

Eemshaven A Netherlands RWE Generation 2014 777 100.0 777 100,0 777

Eemshaven B Netherlands RWE Generation 2014 777 100.0 777 100,0 777

Amercentrale ST 8 Netherlands RWE Generation 1980 611 100.0 611 100.0 611

Amercentrale ST 9 Netherlands RWE Generation 1993 503 100.0 503 100.0 503

Aberthaw B UK RWE Generation 1971–1979 1,554 100.0 1,554 100.0 1,554

Total hard coal (without contractually secured power plants) 7,389 7,389 7,213

Portfolio

1 Net bottleneck capacity.

As of December 2014. Rounding differences may occur.


RWE’s Generation division’s power plant portfolio (II)

Power plant

Country

Operating

company

Commissioned

Net

capacity

RWE's legal

consolidation

stake

RWE's

economic

stake

Partner

Stake

in

MW

%

MW

%

MW

%

Gas

Emsland B, C, D

Germany

RWE Generation

1973/74,

2010/12

1,837

100.0

1,837

100.0

1,837

Gersteinwerk F – I Germany RWE Generation 1973 1,285 100.0 1,285 100.0 1,285

Gersteinwerk Werne Kv1 Germany RWE Generation 1984 112 100.0 112 100.0 112

Weisweiler VGT G, H Germany RWE Generation 2006 544 100.0 544 100.0 544

Bochum Germany RWE Generation 2004 21 100.0 21 100.0 21

Dortmund Germany RWE Generation 2004 26 100.0 26 100.0 26

GuD Dormagen Germany RWE Generation 2000 326 100.0 326 0.0 326

GuD Dormagen Germany RWE Generation 2000 260 100.0 260 100.0 0 Bayer AG 100

Moerdijk Netherlands RWE Generation 1996 348 100.0 348 100.0 348

Moerdijk 2 Netherlands RWE Generation 2012 426 100.0 426 100.0 426

Inesco (Antwerpen) Belgium RWE Generation 2007 133 100.0 133 100.0 133

Clauscentrale A (gas/oil) Netherlands RWE Generation 1977 610 100.0 610 100.0 610

Clauscentrale C Netherlands RWE Generation 2012 1,304 100.0 1,304 100.0 1,304

Gas NL <100MW Netherlands RWE Generation various 191 100.0 191 100.0 191

Swentibold CC Netherlands RWE Generation 1999 245 100.0 245 100.0 245

Great Yarmouth UK RWE Generation 2001 398 100.0 398 100.0 398

Little Barford UK RWE Generation 1994 721 100.0 721 100.0 721

Didcot B UK RWE Generation 1996–1997 1,440 100.0 1,440 100.0 1,440

Staythorpe UK RWE Generation 2010 1,752 100.0 1,752 100.0 1,752

Pembroke UK RWE Generation 2012 2,181 100.0 2,181 100.0 2,181

Denizli Turkey RWE Generation 2013 787 100.0 787

100.0 551

Total gas 14,946 14,946 14,450

Portfolio



RWE’s Generation division’s power plant portfolio (III)

Power plant

Country

Operating

company

Commissioned

Net

capacity

RWE's legal

consolidation

stake

RWE's

economic

stake

Partner

Stake

in

MW

%

MW

%

MW

%

Cogeneration (gas)

Delesto 1 Netherlands RWE Generation 1987 180 0.0 0 27.9 50 Akzo Nobel

Delesto 2 Netherlands RWE Generation 1998 340 0.0 0 27.9 95 Akzo Nobel

Elsta CC Netherlands RWE Generation 1998 469 0.0 0 34.1 160 AES, Delta

Phillips Petroleum UK RWE Generation 1999 55 100.0 55 100.0 55

Cheshire UK RWE Generation 2000 40 100.0 40 100.0 40

Aylesford Newsprint UK RWE Generation 1994 99 100.0 99 100.0 99

Whitegate Ireland RWE Generation 1998 6 100.0 6 100.0 6

Huntsman Tioxide UK RWE Generation 2003 15 100.0 15 100.0 15

Hythe UK RWE Generation 2005 56 100.0 56 100.0 56

Total cogeneration (dispatch rights)1 1,260 271 576

Oil

Littlebrook D UK RWE Generation 1982–84 1,140 100.0 1,140 100.0 1,140

OCGTs (gas oil, various sites) UK RWE Generation 373 100.0 373 100.0 373

Total oil 1,513 1,513 1,513

Renewables hydro run-of-river

KW Laufwasser (various sites) Germany RWE Generation 17 17 17

Linne HH 1-4 Netherlands RWE Generation 1989 11 100.0 11 100.0 11

Total renewables hydro run-of-river 28 28 28

1 Plants where RWE has a contractual right through long-term agreements to the generation.

Portfolio



RWE’s Generation division’s power plant portfolio (IV)

Power plant

Country

Operating

company

Commissioned

Net

capacity

RWE's legal

consolidation

stake

RWE's

economic

stake

Partner

Stake

in

MW

%

MW

%

MW

%

Renewables other

Cuijk (biomass) Netherlands RWE Generation 1999 25 100.0 25 100.0 25

Amercentrale ST 9 (biomass) Netherlands RWE Generation 1993 140 100.0 140 100.0 140

Total renewables other 165 165 165

Total renewables (without contractually secured power plants) 192 192 192

Other

MHKW Karnap Germany RWE Generation 1987 38 100.0 38 100.0 38

Köpchenwerk (pump storage) Germany RWE Generation 1989 153 100.0 153 100.0 153

MVA Weisweiler Germany RWE Generation 1996 24 100.0 24 100.0 24

SRS Ecotherm Germany RWE Generation 2003 1 100.0 1 100.0 1

Total other (without contractually secured power plants) 216 216 216

Portfolio



RWE’s Generation division’s power plant portfolio (V)

Power plant

Country

Operating

company

Commissioned

Net

capacity

RWE's legal

consolidation

stake

RWE's

economic

stake

Partner

Stake

in

MW

%

MW

%

MW

%

Contractually secured plants

STEAG (hard coal) Germany RWE Generation 1,694 0.0 1,694 0.0 1,694

Other hard coal Germany RWE Generation 441 100.0 457 100.0 4571

Neckar (water run-of-river) Germany RWE Generation 29 100.0 29 100.0 291

Rhein-Main-Donau

(water run-of-river)

Germany

RWE Generation

10

100.0

10

100.0

101

Kaunertal (storage) Austria RWE Generation 360 44.4 160 44.4 1601

Schluchsee (pump storage) Germany RWE Generation 1,740 50.0 870 50.0 8701

SEO Vianden (pump storage) Germany RWE Generation 1,291 100.0 1,291 100.0 1,2911

T-Power Netherlands RWE Generation 424 0.0 0 100,0 424

EPZ-Coal Netherlands RWE Generation 404 30.0 121 30.0 121

EPZ-Nuclear Netherlands RWE Generation 485 30.0 146 30.0 146

EPZ-Wind Netherlands RWE Generation 24 30.0 7 30.0 7

Total contractually secured plants 6,902 4.785 5,209

Total RWE Generation 46,502 43,396 42,643


Portfolio



RWE’s Supply Germany division’s power plant

portfolio (I) Power plant

Country

Operating

company

Commissioned

Net

capacity

RWE's legal

consolidation

stake

RWE's

economic

stake

Partner

Stake

in

MW

%

MW

%

MW

%

Hard coal

VSE Unit 1 Germany VSE 1963 106 50.0 106 50.0 53 Various shareholders 50.0

HKW Schöneweide Germany RWE Vertrieb 1992 10 100.0 10 100.00 10

Total hard coal 116 116 63

Gas

Small units of regional

companies (mainly EnviaM) Germany mainly EnviaM various 455 various 242 various 264 Various shareholders various

Total gas 455 242 264

Oil

Großkayna Germany EnviaM 1994 119 100.0 119 100.0 119

Sermuth Germany EnviaM 1995 17 100.0 17 100.0 17

Peissenberg (gas oil) Germany LEW 1987, 1990 11 50.0 11 50.0 6 E.ON 50.0

Total oil 147 147 141

Renewables wind (onshore)

small units of regional

companies (mainly EnviaM,

VSE)

Germany mainly EnviaM,

VSE 131 various 59 various 67

Total renewables wind (onshore) 131 59 67


German regional companies

(mainly LEW, Süwag, EnviaM)

Germany

RWE

Deutschland

204

various

192

various

133

Various shareholders


Portfolio



RWE’s Supply Germany division’s power plant

portfolio (II) Power plant

Country

Operating

company

Commissioned

Net

capacity

RWE's legal

consolidation

stake

RWE's

economic

stake

Partner

Stake

in

MW

%

MW

%

MW

%

Renewables other

Solar

(various sites, mainly regional

companies)

various

20

various

2

various

15

Biomass


companies)

various

66

various

62

various

62

Others


companies)

various

18

various

14

various

15


Total RWE's Supply Germany power plant portfolio 1,156 833 759

Portfolio



RWE’s Central Eastern and South Eastern Europe

division’s power plant portfolio Power plant

Country

Operating

company

Commissioned

Net

capacity

RWE's legal

consolidation

stake

RWE's

economic

stake

Partner

Stake

in

MW

%

MW

%

MW

%

Hard coal

TE Plomin 2 Croatia TE Plomin d.o.o. 2000 192 50.0 0 0.0 0 HEP d.d. 50.0


Lignite

Mátra Hungary Mátra 1967 763 51.0 763 51.0 389 EnBW, MVM 49.0

HKW Nachod (CZ) Czech Republic 1950/1970 17 100.0 17 100.0 17

Total lignite 780 780 406

Gas

Mátra Hungary Mátra 2007 60 100.0 60 51.0 31 EnBW, MVM 49.0

Sinergy (various sites) Hungary Sinergy/MASZ 2000–2005 127 various 87 various 96

RWE Energo Czech Republic various 26 3 11

RWE Polska Contracting Poland various 1 1 1

Total gas 214 151 138

Renewables

ÉMÁSZ (hydro run-of-river) Hungary ÉMÁSZ 1 100.0 1 100.0 1

VSE Ekoenergia (solar) Slovakia VSE Slovakia 1 49.0 0 49.0 1

Bioplyn Rozhanovce (biogas) Slovakia VSE Slovakia 1 25.0 0 25.0 0

HKW Albrechtice (biogas) Czech Republic 2 100.0 2 100.0 2


Total CEE 1,191 934 547

Portfolio



RWE’s Trading/Gas Midstream division's power plant

portfolio Power plant

Country

Operating

company

Commissioned

Net

capacity

RWE's legal

consolidation

Stake

RWE's

economic

stake

Partner

Stake

in

MW

%

MW

%

MW

%

Hard coal

Lynemouth UK RWE Supply &

Trading 1972/1973 395 100.0 395 100.0 395


Total Trading/Gas Midstream 395 395 395

Portfolio



RWE’s Renewables division’s power plant portfolio1(I)

Power plant

Country

Operating

company

Commissioned

Net

capacity

RWE's legal

consolidation

stake

RWE's

economic

stake

Partner

Stake

in

MW

%

MW

%

MW

%

Gas

Biogasanlage Neurath Germany RWE Innogy 2007 1 100.0 1 100.0 1

Total gas 1 1 1

Renewables wind (onshore)

RWE Innogy Wind (various sites) Germany RWE Innogy various 544 various 539 various 491

Various sites NL Netherlands RWE Innogy 1987–2012 210 100.0 210 100.0 210

Various sites UK <50MW UK RWE Innogy various 430 various 295 various 2811

North Hoyle (offshore)

UK

RWE Innogy

2003

60

0.0

60

0.0

601

M&G Investment,

JPMorgan Investment 67.0

Farr

UK

RWE Innogy

2006

92

0.0

92

0.0

921

M&G Investment,

JPMorgan Investment

67.0

Rhyl Flats (offshore) UK RWE Innogy 2009 90 100.0 90 100.0 45

Little Cheyne Court UK RWE Innogy 2009 60 100.0 60 100.0 35

Middlemoore UK RWE Innogy 2013 54 51.0 54 51.0 28

Greater Gabbard (offshore) UK RWE Innogy 2012 504 50.0 252 50.0 252

Gwynt y Mor UK RWE Innogy 2014 281 60 168 60.0 168

Various sites Portugal Portugal RWE Innogy various 8 various 0 various 3

Thornton Bank (offshore) Belgium RWE Innogy 2009 31 26.7 0 26.7 8 73.3

Thornton Bank Phase 2+3 (offshore) Belgium RWE Innogy 2012/2013 295 26.7 0 26.7 79 73.3

Various sites Spain <50MW Spain RWE Innogy various 317 Various 317 various 315

Danta Spain RWE Innogy 2004 129 98.7 129 98.7 128 1.3

Various sites Poland <50 MW Poland RWE Innogy various 197 various 197 various 181

Various sites Italy <50MW Italy RWE Innogy various 67 various 67 various 34

Total renewables wind 3,368 2,530 2,410


Portfolio



RWE’s Renewables division’s power plant portfolio1(II)

Power plant

Country

Operating

company

Commissioned

Net

capacity

RWE's legal

consolidation

stake

RWE's

economic

stake

Partner

Stake

in

MW

%

MW

%

MW

%


Saarwasser (various) Germany RWE Innogy 32 100.0 32 100.0 32

RADAG Germany RWE Innogy 100 78.0 100 78.0 78 RADAG 22.0

RWE Innogy Laufwasser (various sites) Germany RWE Innogy 242 100.0 242 100.0 242

npower Renewables (various sites) UK RWE Innogy various 77 100.0 77 100.0 77

Energies France (various sites) France RWE Innogy 1958–1989 45 100.0 45 100.0 45

AERSA (various sites) Spain RWE Innogy 1998–2000 7 100.0 7 100.0 7

Villlalgordo (AERSA)

Spain

RWE Innogy

1998

6

60.0

6

60.0

3

Gruforsa, Sauces Treinta,

Rússula

40.0

INVESTERG (various sites) Portugal RWE Innogy 1996–2004 16 various 16 various 13 18.6

Ribadouro (INVESTERG) Portugal RWE Innogy 1993 3 32.3 0 32.3 1 67.7

Vales (INVESTERG) Portugal RWE Innogy 2008 3 39.4 0 39.4 1 60.6

Agilde Portugal RWE Innogy 2012 2 32.3 0 32.3 1 67.7


Renewables other

Solar (various sites) Germany RWE Innogy various 1 various 1 various 1

BMHKW Wittgenstein (biomass wood) Germany RWE Innogy 2005 5 100.0 5 100.0 5

Markinch (biomass wood) UK RWE Innogy 2014 46 100.0 46 100.0 46



Portfolio



RWE’s Renewables division’s power plant portfolio1(III)

Power plant

Country

Operating

company

Commissioned

Net

capacity

RWE's legal

consolidation

Stake

RWE's

economic

Stake

Partner

Stake

in

MW

%

MW

%

MW

%

Contractually secured plants

AEW, Klingnau (hydro run-of-river) Switzerland RWE Innogy 37 30.0 0.0 62.5 231

Total contractually secured plants 37 0 23

Total renewable energies 3,991 3,107 2,987

Total RWE Group 53,236 48,665 47,331


Portfolio



RWE Generation – use of fuel

Hard coal (mt) Lignite (mt) Natural gas (billion m³)

Nuclear fuel (t) Biomass (mt)

12.1

9.6

11.5

9.6

13.7

11.9 11.9

95.4

92.3 90.5

95.0

100.8

96.6 95.4

6.8 6.1

8.9 8.2 8.0 7.9 7.8

2008 2009 2010 2011 2012 2013

2008 2009 2010 2011 2012 2013 2014

2008 2009 2010 2011 2012 2013 2014 2008 2009 2010 2011 2012 2013 2014 2014

2008 2009 2010 2011 2012 2013 2014

119.1

74.0

109.1

77.0

64.1 64.0 62.5

1.1

1.6

2.3

3.0 3.3

4.9 4.8

Portfolio


RWE’s emissions profile

RWE’s in-house power generation in 20141

1 Including electricity from power plants not owned by RWE that we can deploy at our discretion on

the basis of long-term agreements. In 2014, it amounted to 15.9 billion kWh in the Conventional

Power Generation division (previous year: 21.8 billion kWh), of which 12.9 billion kWh were

generated by hard coal-fired power plants (previous year: 18.5 billion kWh), and to 0.7 billion kWh in

the Renewables division (previous year: 0.9 billion kWh).

Billion kWh

Lignite 77.2

48.3 Hard coal

Pumped

storage,

2.7 oil, other Renewables 10.1

Gas 38.3

Nuclear 31.7

RWE’s CO2 Emissions in 20141

CO2

emissions

Free allocation

of CO2 certificates

Shortage of

CO2 certificates

Total: 208.3

billion kWh

Million metric tons of CO2

2014

2013

155.2

5.8

148.3

163.9

7.4

156.5

1 Includes power stations not owned by RWE that we can deploy at our

discretion on the basis of long-term agreements. In the year under

review, they produced 14.8 million metric tons of CO2 (previous year:

19.5 million metric tons).

Emissions


RWE’s historic development of emission-reduction

& future perspectives

RWE’s accomplished reduction of emission in the past

and will focus on further reductions by 2020

1990 2005 2014 0.872 t/MWh 0.792 t/MWh 0.745 t/MWh

Reduction of

14%

Reduction of

6%

Methods

• Focus on development of renewable energy systems

• Optimisation of conventional generation systems

• Termination of external power supply with contract power plants (Steag)

Goal for

2020

0.62 t/MWh

- 29%

Emissions


RWE’s hard coal purchases by country of origin

Source: RWE.

Total:

11.9 million metric tons

Colombia 21.1%

Germany 17.2%

Russia 13.0%

UK 14.0%

USA 10.6%

South Africa 22.1%

Other 2.0%

Hard coal



RWE’s Rhenish lignite mining region (2014)

Lignite

Eschweiler

Jülich

Hambach

Niederzier

Buir

Elsdorf

Blatzheim

Bergheim

Sophienhöhe

Sindorf

A 61 Katzem

Erkelenz

Wanlo

Jüchen

A 44

A 61

A 61

A 44

Köln

Kerpen

Hückelhoven

Düren

Grevenbroich

Brühl

Frechen

Wesseling

Bedburg

Frimmersdorf

Niederaußem

Fortuna-Nord

Hürth

Berrenrath

KW Knapsacker Hügel

A 553

A 555

Linnich

A 540

Dürwiß

A 1

Frechen

Köln

Stand 01/2015

Gymnich

Lechenich

Rödingen

Rommerskirchen Neurath

A 4 Aldenhoven

A 46

A 46

Rheindahlen

Wickrath

Mönchengladbach

A 4

Tagebau

Hambach

Tagebau

Inden

Weisweiler

Tagebau

Garzweiler

genehmigte Abbaugrenzen

Kohlenveredlungsbetriebe

Braunkohlenkraftwerke

Umsiedlungen

Wasserflächen

Forstwirtschaftliche Rekultivierung

Landwirtschaftliche Rekultivierung

Betriebsfläche


RWE’s lignite production in the Rhenish mining region

0

20

40

60

80

100

120

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

Million tons lignite

Frimmersdorf-Süd

Frimmersdorf-West

Fortuna-Garsdorf

Inden Südrevier

Zukunft-West

Frechen Bergheim

Garzweiler I Garzweiler II

Hambach I

Inden I + II

Number of mines 10 11 9 9 5 3 3 3 3 3 4

Actual values Mining capacity

Lignite



Lignite production: 3.0 billion tons of approved

reserves offer a reliable basis for long-term energy

supply

1 As of 1 January 2015. From 2017 to 2019

decreasing by 1,500 MW due to security stand-by.

2 Exclusive of topping gas turbines.

3 Gross output.

4 From 2017 to 2019 decreasing to 6x300 ~ 1,800 MW

due to security stand-by.

Power plant Capacity1

Frimmersdorf 600 MW

Neurath 4,200 MW

Niederaußem 3,400 MW

Weisweiler 1,800 MW2

Refining Power plant

capacity3

Production

(2014)

Fortuna 30 MW 1.95 mt

KW Süd (Berrenrath,

Goldenberg, Frechen)

410 MW 3.10 mt

RWE‘s lignite power plants cover

~13% of electricity demand

in Germany

Unit Class Installed capacity Commissioning Efficiency

300 11x300 ~ 3,300 MW4 1965-1973 ~ 33%

600 6x600 ~ 3,600 MW 1974-1976 ~ 36%

1000 3x1,000 ~ 3,000 MW 2003-2012 ~ 43%

Lignite


Lignite production and use (2014)

Lignite production and use in million tons

Germany (total) 185.4

RWE Generation 93.6

Thereof:

Electricity production 81.6

Refining 12.0

Lignite in the Rhenish

region

in billion tons

Geological reserves 55.0

Approved and developed opencast

mines

2.9

Coal to overburden ratio 1:4.9 (t/m³)

Opencast mining Extraction Reserves

Garzweiler 35 – 40 Mt/a 1.2 billion t

Hambach 35 – 45 Mt/a 1.4 billion t

Inden 20 – 25 Mt/a 0.3 billion t

90-100 m t/a lignite production in

opencast mines

As of January 2015.

Lignite


Policy of the State of NRW: New Landmark

Decision for Garzweiler in the Pipeline (I)

Lignite

Neu - Garzweiler

A 61

A 61

A 61

A 46

A 46

A 540

A 44

A 44

Jackerath

Katzem

Kückhoven

Erkelenz Kaulhausen

Venrath

Wanlo

Lützerath

Immerath

Berverath

Keyen-

berg

Kuckum

Unter-

Westrich Ober-

Westrich

Titz

Gustorf

Erf

t

Hochneukirch

Jüchen

Neu-Holz

Neu-Otzenrath/Spenrath

2044

Umsiedlungsstandort

Borschemich

Umsiedlungsstandort

Immerath-Pesch-Lützerath

Mining border

Approved safety line

Garzweiler I / II Borschemich

approved 3rd resettlement segment

4th resettlement segment

Hauerhof

Holzweiler

Dackweiler


Policy of the State of NRW: New Landmark

Decision for Garzweiler in the Pipeline (II)

Lignite

> For the opencast mines to continue operating, the state administration has to confirm the politicians’

conviction of the need for them

> In 2014, this was done for the 3rd resettlement segment (production until 2030)

> However, the state administration wants to make a new landmark decision for the 4th resettlement segment

for the period after 2030; its political goal is to reduce the size of the opencast mine and renounce further

resettlements

State of Affairs (October 2015):

> The draft of the landmark decision has been prepared and confirms the politicians’ conviction of the need for

lignite after 2030, albeit to a lesser extent than so far

> Online consultation until 8 December 2015

> Completion expected by spring 2016

Main Elements of the Decision by the NRW State Government on the

Garzweiler Opencast Mine


Overview of German nuclear power plants and

closures German nuclear power plants

Brunsbüttel

Unterweser

Krümmel

Brokdorf

Emsland

Grafenrheinfeld Biblis

Philippsburg

Neckarwestheim Gundremmingen

Isar

Grohnde

Power plant Net capacity

MW

Commercial

commissioning

Closure

Biblis A 1,167 1975

Immediately

(2011)

8,409 MW

Neckarwestheim I 785 1976

Biblis B 1,227 1977

Brunsbüttel 771 1977

Isar 1 878 1979

Unterweser 1,345 1979

Philippsburg 1 890 1980

Krümmel 1,346 1984

Grafenrheinfeld 1,275 1982 31 May 2015

Gundremmingen B 1,284 1984 31 Dec 2017

Philippsburg 2 1,392 1985 31 Dec 2019

Grohnde 1,360 1985 31 Dec 2021

4,058 MW Gundremmingen C 1,288 1985

Brokdorf 1,410 1986

Isar 2 1,400 1988 31 Dec 2022

4,039 MW Emsland 1,336 1988

Neckarwestheim II 1,310 1989

Total 20,464

RWE power plants

Nuclear


How the size of the provision is determined

> Provision for uncertain liabilities as per IAS 37

> Public-law liabilities under Sec.9a of the German Nuclear Energy

Act

> Provisions are built for:

Disposal of spent nuclear fuel assemblies

flaks, transport, conditioning, intermediate and final storage

30.06.2015: € 4,716 million

Decommissioning of nuclear power plants

post-operation phase, dismantling, removal, final storage

30.06.2015 : € 4,876 million

Disposal of radioactive operating waste (e.g. cleaning cloths, oils)

conditioning, flaks, intermediate and final storage 30.06.2015 :

€ 904 million

> Inflation of current cost to the assumed disposal date by a

set of inflation rate; then discounting of the result back to

today (discount rate: 4.6% p.a., escalation rate: 3.7% p.a.)

Determination of nuclear provisions

Nuclear provisioning at RWE

€ million

2014 2014 2015 2016

Amount

payable

20..

Escalation rate

(specific cost increase)

Discount rate

(discount to

net present

value)

Pro-

visions

IFRS

Total

cost at

the

cut-off

date

Annual interest accretion

t

Nuclear


Comparison to international real interest rates

Nuclear

Source: RWE analysis.

As of October 2015.

.

Nuclear-specific real interest rates used to value long-term obligations.

German NPP operators assume a specific real interest rate (derived from discount and inflation rates) of 1.0 percent on average.

This conservative figure reflects the principle that the accounting treatment of provisions should be cautious. This is also

underscored by the fact that German provisions for nuclear obligations are at a high level.

-4,0%

-3,0%

-2,0%

-1,0%

0,0%

1,0%

2,0%

3,0%

4,0%

2015 2025 2035 2045 2055 2065 2075 2085 2095

France

Belgium

UK

Switzerland

Germany


1 For deferred dismantling the facility will be prepared for long-term safe storage operation of ~30 years.

Operation Final disposal

Conventional

dismantling/

demolition

2 – 3 years

Nuclear dismantling

(immediate, deferred1)

10 – 15 years

> Dismantling of contaminated and activated systems, structures and components

> Materials and waste management (treatment, conditioning, packaging)

> Conventional

demolishing of buildings/

components which no

longer fall under the

German Nuclear Energy

Act (NEA)

> Final disposal of

decommissioning

waste

RWE Power’s nuclear decommissioning concept

Post operational

phase

5 – 7 years

35 – 40%

share of costs

10 – 15%

share of costs

About 50%

share of costs

Decommissioning

> Power production has ceased

> In some cases, technical infrastructure needs to be operated for an additional period

> For the time being, fuel elements are being cooled in pond storage facilities until they are suitable for dry-cask (CASTOR) storage on site

> Shut down of systems which are no longer needed

> Treatment of operating materials and waste

Nuclear


Decommissioning options – cash flow and

decision criteria

+ Staff/know-how available

+ Higher public & political acceptance

+ Site available for future use

- Earlier cash-out

- Interim storage facilities necessary

Co

sts

Time

Decommissioning Post operational phase

Immediate dismantling Safe enclosure

Decision about a decommissioning option is taken with regard to economic, technical and organisational facts and general

public and political interest.

+ Dose reduction by radioactive decay

+ Costs postponed to the future

+ Independent from interim storage /final repository

- Irreversible loss of staff/know-how

- Rise of provisions, impact on debt ratio

Immediate dismantling Safe enclosure

Nuclear


Dismantling process – immediate dismantling

1 Licence procedure

2 Dismantling of contaminated

systems and components

3 Dismantling of activated

components (Reactor

pressure vessel)

4 Dismantling of biological

shield

5 Dismantling of remaining

components

6 Decontamination and release

of buildings

7 Pulling down of buildings

8 Release of terrain

(greenfield)

Nuclear


RWE decommissioning experience – examples

Immediate Dismantling Deferred Dismantling

Kahl

(16 MWel)

Green field (10/2010)

Gundremmingen

Unit A (250 MWel)

Dismantling completed

Mülheim-Kärlich

(1,219 MWel)

Dismantling of contaminated

parts

Biblis

(1,146/1,240 MWel)

Post operational period

Lingen

(240 MWel)

Transition from safe

enclosure to dismantling

Experiences:

> Dismantling and decontamination technology

developments

> Waste treatment optimisation

> Final release of buildings and site

> Future nuclear use (Technology Centre Unit A)

Experiences:

> Shut down and simplifi-

cation of systems

> New “mobile” systems as

surrogate for existing

residual operation systems

> Partial release of buildings

and terrain

Experiences:

> Shut down and simplifi-

cation of systems

> Efficient application and

approval procedures

> Development of a

dismantling strategy

for a double unit

Experiences:

> Preparation and operation

of safe enclosure

> Preparation of “deferred”

dismantling

Conclusions:

> Extensive experiences from decommissioning of nuclear power plants for more than 2 decades

> Technical feasibility in compliance with safety and radiation protection standards has been proven

> All necessary technologies are available and were employed effectively several times

> Qualified service providers are available

> Provision calculation model is established, well accepted and reliable

Planning/Preparation

Nuclear


Installed capacity and electricity generation in

Germany

3.0% 3.7% 6.5%

17.1% 11.1%

26.4%

14.6%

18.4%

12.7%

6.6%

7.2%

3.3%

3.4%

7.7%

20.6%

6.5% 21.1%

10.4%

Net installed capacity Net electricity generation

Wind

PV

Biomass and otherrenewables

Oil, pumped storage andothers

Gas

Hard coal

Lignite

Nuclear

Run of river

Source: German Energy and Water Association (BDEW), “Stromzahlen“ 2015: public supply net capacity and net generation.

538 TWh 186 GW

Market Data



Net electricity bottleneck capacity in Germany

(2000–2014)1 2

1 Maximum capacity which can be achieved by a power plant minus electricity produced for self consumption.

2 Preliminary figures.

Source: German Energy and Water Association (BDEW), March 2015. Data for each year as of 31 December.

0

50.000

100.000

150.000

200.000

250.000

121 122 127 124 130

135 139

145 149

157

167 169

178 187

194

Other

Other renewables

Solar

Wind offshore

Wind onshore

Run-of-river

Pumped storage

Oil

Gas

Hard coal

Lignite

Nuclear

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

GW

2

Market Data

50

100

150

200


Growing uncertainty as to whether sufficient firm

capacity will be available

Development of secure capacity in Germany, 2012 – 2022 in GW

65

12

5

88

Demand side

management

5–15

3

Shortfall of

firm

capacity at

end 2022

Firm

capacity

end 2012

Balancing

energy

Firm

capacity

end 2022

69–79

Plant

closures for

economic

reasons

0–10

Phase-out

of nuclear

energy

Closures

due to Large

Combustion

Plant

Directive

Secure

capacity

from

renewables

2

Addition of

thermal

power plants

by 2015

5–15

0–10

Source: AGORA

Market Data


The electricity supply curve in Germany1

Illustrative / without feed-in of electricity under the Renewable Energy Act

1 Merit order is based on variable costs (mainly fuel and CO2 costs) only. It does not include the fix costs which have to be covered by the margin the plants are generating.

Short-term variable costs

[€/MWh]

Market Data

Generation capacity

Market price midday

Steep curve because the demand is

price-inelastic in the short term

Renewables

Nuclear

Lignite

Hard coal

Gas

Oil


[€/MWh]

Demand

midday


Generation capacity

Renewables

Nuclear

Lignite

Hard

Gas

Oil

Market price old

Demand

midday

Margin loss

REA2

Market price new

The electricity supply curve in Germany1 Illustrative / including feed-in of electricity under the Renewable Energy Act


[€/MWh]

1 Merit order is based on variable costs (mainly fuel and CO 2 costs) only. It does not include the fix costs which have to be covered by the margin the plants are generating.

2 Renewable Energy Act, must-take obligation.

Market Data



[€/MWh]

Generation capacity

Renewables

Nuclear

Hard coal

Gas

The electricity supply curve in the Netherlands1

Illustrative / without feed-in of electricity under the Renewable Energy Act

1 Merit order is based on variable costs (mainly fuel and CO22 costs) only. It does not include the fix costs which have to be covered by the margin the plants are generating.

Market Data



[€/MWh]

Generation capacity

Renewables

Nuclear

Hard coal

Gas

Oil

The electricity supply curve in UK1 Illustrative / without feed-in of electricity under the Renewable Energy Act

1 Merit order is based on variable costs (mainly fuel and CO 2 costs) only. It does not include the fix costs which have to be covered by the margin the plants are generating.

Market Data


Installation Operator Fuel Installed

capacity (MW)

Capacity opted in2

(MW)

Capacity opted out3

(MW)

FGD4 status

Eggborough Eggborough Power Ltd. Coal 1,960 1,960 – 2 out of 4 units fitted

Drax Drax Power Coal 3,870 3,870 – Fitted; unit 2 converted to biomass

Kingsnorth E.ON UK Coal/Oil 1,940 – 1,940 Closed December 2012

Ratcliffe E.ON UK Coal 1,960 1,960 –- Fitted; SCR4 also fitted

Ironbridge E.ON UK Coal 940 – 7004 Converted to biomass

Unit 1 closed February 2014

Grain E.ON UK Oil 1,300 – 1,300 Closed December 2012

Cottam EDF Energy Coal 2,000 2,000 – Fitted

West Burton EDF Energy Coal 1,970 970 – Fitted

Rugeley GdF Suez Coal 1,000 1,000 – Fitted

Didcot A RWE Generation Coal/Gas 1,940 – 1,940 Closed March 2013

Aberthaw RWE Generation Coal 1,530 1,530 – Fitted

Littlebrook RWE Generation Oil 1,370 – 1,370 No FGD; due to close by end 2015

Fawley RWE Generation Oil 1,000 – 1,000 Closed March 2013

Tilbury RWE Generation Coal 1,020 – 7505 Converted to biomass; closed July 2013

Ferrybridge SSE Coal 1,960 980

–

–

980

2 units fitted

2 units due to close by end 2015

Fiddlers Ferry SSE Coal 1,960 1,960 – Fitted

Longannet Scottish Power Coal 2,304 2,304 – 3 out of 4 units fitted

Cockenzie Scottish Power Coal 1,152 – 1,152 Closed December 2012

Uskmouth SSE Coal 363 363 0 Fitted; closed March 2014

Total 31,539 18,897 11,132

Due to the LCPD1 a shut-down of 11–12 GW by the

end of 2015 (or earlier) is expected in the UK market

1 LCPD = Large Combustion Plant Directive.

2 Compliant with LCPD emission limits (Drax, Eggborough and Longannet in NERP).

3 Limitation of operating hours to 20,000 between Jan. 1, 2008 and Dec. 31, 2015.

No requirement to fit FGD.

4 FGD: flue gas desulphurisation; SCR: Selective Catalytic Reduction.

5 Capacity post-conversion to biomass.

Source: DECC (DUKES).

Regulation



RWE Supply & Trading is a leading European energy trading house and the

interface between the RWE Group's operating companies and global wholesale

markets for energy and energy-related raw materials in both their physical and/or

derivative forms. This includes power, gas, coal, freight, oil, weather derivatives,

biomass, emissions certificates and renewable energies. We are responsible for

the economic optimisation of power generation and the entire non-regulated gas

business of the RWE Group, including all procurement, storage and LNG-related

activities.

Large industrial companies and trading partners are offered long-term delivery

concepts by RWE Supply & Trading next to a trading-based portfolio management.

Our headquarters in Essen boast Europe’s largest energy trading floor,

complementing our network of additional trading floors in London and Swindon, as

well as subsidiary, affiliate and branch offices in Den Bosch, Geneva, Prague,

Singapore, New York, Jakarta and Mumbai.

1,501 TWh of electricity traded

in 2014

Introduction


RWE Supply & Trading – key figures

Energy sales to industrial customers 2014 (billion kWh)

Trading volumes 2014

Key figures 2014


EBITDA (€ million) 286


Workforce1 1,338

> 1,501 billion kWh of electricity

> 393 billion cubic meters of gas

> 1,598 million barrels of oil

> 685 million CO2 certificates

1 Converted to fulltime positions.

Electricity

30%

36%

20%

6%

8%

25.7

billion kWh

Gas Aluminium, steel & mining

Fine chemicals &

pharmaceuticals

Transport, automotive &

other

Glass, paper & cement

Primary industry/

petrochemistry

43%

11%

12%

19%

15%

23.7

billion kWh

Introduction


The interface between the RWE Group and global

wholesale energy markets

1 TSO = Transmission System Operator.


Transfer of

commercial

responsibility

RWE’s generating

companies

RWE’s sales

companies

Sale of

power and

gas

Sale of fuels and

emission certificates

Sale of

power

Sale of options and

emission certificates

Sale of power

and gas

Sale of power,

gas, emission

certificates

Trading

Industrial Sales

Commercial Asset Optimisation

Retail,

small/medium

sized industrials,

municipals

Industrial

customers

> Investment decisions

> Technical

optimisation to

increase value of

assets

> Operation and

maintenance of

generation assets

> Face to the wholesale market

> Trading activities

> Face to industrial customers

> Back-to back physical and financial structuring of

common/uncommon supply contracts

> Commercial optimisation of assets, fuel supply and

asset hedging on behalf of generating companies

> Asset-backed trading activities

> Reserve & balancing, ancillary services, face to TSOs1

> Sale to customers

(power, gas)

> Back-to-back

procurement

> Lock-in sales margin

> Bear volume and

credit risk

Sale of power

and gas

Embedded

lignite supply

Emission/Green

certificates Coal Power Gas Oil Biomass Freight Weather

Introduction


RWE’s gas storage facilities: 11 facilities are in place or being expanded

Storage system operator

in Germany

Storage system operator

in the Czech Republic

Working gas

volume (bcm)

Maximum

withdrawal

rate (m3/h)

Staßfurt 0.539 550,000

Epe H-gas 0.523 870,000

Epe G-gas 0.313 500,000

Xanten 0.185 280,000

Epe L-gas 0.090 400,000

Štramberk

Třanovice

Háje

Dolní Dunajovice

Lobodice

Tvrdonice

2,696 1,675,000

Working gas

volume (bcm)

Maximum

withdrawal

rate (m3/h)

RWE’s existing gas storage capacity:

A total of some 4.3 billion cubic metres

Gas Midstream


638

191

277.8

57.4

30

154

41.4

94.4

80.1

220.2

13.7

Germany

France

Italy

Czech Rep.

Romania

UK

Poland

Austria

Hungary

NL

Spain

23,821

11,709

16,676

3,497

3,100

4,680

2,109

8,166

6,330

5,378

2,533

Germany

France

Italy

Czech Rep.

Romania

UK

Poland

Austria

Hungary

NL

Spain

Gas storage facilities in Europe – Germany is leading

Number of natural gas storage

facilities

Their maximum working gas

capacity – million m3

Their maximum withdrawal

capacity – million m3 per day

Sources: Eurogas Statistical Report, December 2014.

EU-28: 96,984 million m3 EU-28: 1,976 million m3 per day EU-28: 150

51

16

13

8

8

8

8

8

5

5

4

Germany

France

Italy

Czech Rep.

Romania

UK

Poland

Austria

Hungary

NL

Spain

Market Data


Natural gas supplies in Germany by origin (2014)

1 Preliminary figure, ‘National’ includes bio gas.

Source: German Energy and Water Association (BDEW), March 2015.

Norway 229 22%

Total:

1,041 billion kWh1 Netherlands 271 26%

National 104 10% Denmark, UK, Others 42 4%

Russia 395 38%

billion kWh

Market Data

RWE Innogy


RWE Innogy

RWE Innogy pools the renewable energy expertise and power plants of the RWE Group.

The company plans, builds and operates facilities generating power from renewables.

RWE Innogy will set a strong focus to expand the already strong core businesses

onshore and offshore wind power as well as to strengthen the generation from

hydroelectric power.

RWE Innogy was launched with 1,100 megawatts in February 2008. As of December

2014, RWE Innogy operates a power plant capacity of around 3,112 megawatts based on

wind power, biomass, hydroelectric power and new technologies. The company is

especially strong in its home market in Germany, followed by the United Kingdom, Spain,

Poland, Italy and the Netherlands.

>3.1 GW total installed

capacity

Introduction


RWE Innogy – key figures

Generation capacity as of Dec 2014 (MW)

Examples of offshore wind:

Onshore wind 1,960

Biomass 51

Hydro 526

Offshore wind 570

1 Including minor capacities in solar and biogas.


3 60% ownership RWE Innogy,

Stadtwerke Munich (30%) and Siemens (10%).

Nordsee Ost, 295 MW

> Size: 48 x 6.15 MW Senvion turbines, 34 km2

> Distance to shore: 32 – 45 km

> Water depth: 22 – 26 m

Key figures 2014

External revenue (€ million) 277



Workforce2 989

Gwynt y Môr, 576 MW3

> Size: 160 x 3.6 MW Siemens turbines, 124 km2

> Distance to shore: 13 km

> Water depth: 12 – 28 m

2,9081 3,1121

Introduction


In MW Onshore wind Hydro Offshore wind Biomass Biogas Solar Total

RWE Innogy operational capacities: Accounting view1) + power purchase agreements, Q4 2014

Germany 539 375 0 5 45 1 924

UK 5002 78 5703 46 0 0 1194

Spain 447 12 0 0 0 0 459

Netherlands 210 0 0 0 0 0 210

Poland 197 0 0 0 0 0 197

Italy 67 0 0 0 0 0 67

France 0 45 0 0 0 0 45

Switzerland 0 0 0 0 0 0 0

Portugal 0 16 0 0 0 0 16

Total RWE Innogy 1,960 526 570 51 4 1 3,112

RWE Innogy operational capacities: Pro rata view5) + power purchase agreements, Q4 2014

Germany 489 355 5 4 1 854

UK 4912 78 5263 464 1141

Spain 443 10 6 459

Netherlands 210 210

Poland 181 181

France 45 45

Italy 34 34

Switzerland 23 23

Portugal 3 13 16

Belgium 87 87

Total RWE Innogy 185,1 524 613 51 4 7 3,050

1 Capacity with <50% RWEI ownership is consolidated to 0 MW, capacity with 50% is consolidated to 50% of capacity, and capacity with >50% RWEI ownership is consolidated to 100% of capacity.

2 Including 196MW of Zephyr Onshore assets + 19MW of Green GECCO assets.

3 60MW offshore capacity is owned by Zephyr and is 100% contracted to RWE npower through a PPA.

4 Electrical capacity of CHP plant Markinch can be extended up to 65 MW. 5 Includes only biogas used directly in power generation. 6 Capacity equal to share of ownership.

Spain

Portugal

France Switzerland

BE

Poland

Italy

DE

Hydro

Onshore wind

Biomass

Offshore wind

UK

NL

RWE Innogy’s renewable capacities in Europe

Introduction


42%

20%

5%

5%

24%

25%

4%

2%

25%

48%

Renewable energy’s share of total electricity

generation in Germany

1 REA = German Renewable Energy Act.

2 From 134.9 TWh power generation subsidised by the German REA in 2014, 50.6 TWh received a fix feed-in tariff; 84.3 TWh received a market premium (§34 REA). Not

included in the subsidised volume are 0.9 TWh used for the reduction of the REA surcharge (green energy privilege for suppliers) and 0.3 TWh unsubsidised forms of direct

marketing (obtaining green certificates/guarantees of origin).

3 Including avoided grid fees, without flexibility payments of € 19.4 mn.

614 TWh

Lignite 25.4%

Hard coal 17.8%

Photovoltaic

Hydro

Wind

Biomass

Nuclear 15.8%

Other 5.4%

Photovoltaic

Hydro

Biomass

Wind Onshore

134.9 TWh2 €21.4 billion3

Sources: Gross generation: German Energy and Water Association (BDEW), AG Energiebilanzen 02/2015; REA generation + REA compensation: German transmission

system operators (www.netztransparenz.de): annual account as of July 2015.

Renewable energy 26.2%

(Including approx. 22% REA-compensated)

Gas 9.5%

Gross electricity generation in Germany (2014 preliminary) Generation

subsidised by REA1

REA1

compensation

Other

Wind Offshore

Wind Offshore

Market Data


German Renewable Energy Act compensation

and forecast through 2019 € billion (gross)

1 Other not visible (€ 0,1 billion).

Source: German transmission system operators (www.netztransparenz.de): Figures until 2014 taken from REA annual accounts, from 2015 onwards figures are

taken from the REA mid-term forecasts. Figures include feed-in tariff payments, market premiums, avoided grid fees and PV self consumption support from REA 2012).

Photovoltaic Offshore wind Onshore wind Biomass Hydro Other1

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

21.4

19.6 19.1

7.9

5.8

4.5 3.6

2.6

16.8

13.2

10.8

9.0

23.6

26.7

25.0

27.9 28.5

0.4

6.4

4.0

10.2

0.2

Market Data


Wind: Installed capacity and electricity generation in

Germany Development of installed wind capacity and electricity produced in Germany (1990–2014)

Installed wind capacity (MW)

Electricity produced (TWh)

TWh

0

GW

Source: Frauenhofer institute for solar energy system ISE, Electricity production from solar and wind in Germany in 2014;

BMWI.

Market Data

0.1 1.5

9.5 10.5

15.8 18.7

25.5 27.2

30.7

39.7 40.6 38.6 37.8

48.9 50.7

53.4

42.6

35,678

0

5

10

15

20

25

30

35

40

0

10

20

30

40

50

60

70

1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


PV: Installed capacity and electricity generation in

Germany

Electricity produced (TWh)

Source: Frauenhofer institute for solar energy system ISE, Electricity production from solar and wind in Germany in 2014;

BMWI.

GW

Installed PV capacity (GW)

40

30

20

10

TWh

50

0

Development of installed PV capacity and electricity produced in Germany (1990–2014)

Market Data

0.1 0.2 0.3 0.4 1.1 1.3 2.2 3.1 4.4

6.6

11.7

19.6

26.4

30.0

32.4

38,124

0

10

20

30

40

50

1990 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


German Renewable Energy Act (I)

Issue Renewable energy legislation

Term Last amendment of Renewable Energy Act (REA) effective since August 2014

Aim of amendment Concretisation of intermediate renewable electricity target: 40-45% in 2025, 55-60% in 2035

Changes in support structure for renewable energy plants including growth corridors, extension of direct marketing and

ultimately transition to tendering models with more integration on European level

Thereby more cost-efficient renewable growth, reducing subsidy burden for consumer bills and avoid excessive

promotion of renewables.

Object of subsidy Electricity actually generated in renewable plants which feed into the supply grid

Levels of subsidy Different price schemes for existing and new renewable plants, depending on technology (onshore wind, offshore wind,

hydro, biomass, solar, biogas, geothermal energy), size of plant and year of commissioning. Gradually introduction of

compulsory direct marketing (payment of a variable market premium)

Volume Approx. € 23 billion payments for Feed-in tariffs and market premium projected for 2015 without system costs (grid,

balancing power)1

Funding Amount allocated to total supplies to end customers from the public supply grid (REA surcharge)

was about 6.240 ct/kWh in 2014 and is about 6.170 ct/kWh in 2015

Limitation of the burden on energy intensive production

REA’s ‘special equalisation scheme’ reduces the amount of the REA surcharge to 15% of the determined amount if a

company consumes more than 1 GWh in a financial year, belongs to a specified type of industry and electricity costs are

at least between 16-20%2 of gross production value. The amount of the reduction is limited to 0,5-4,0%3 of gross

production value. In any case remains a minimum surcharge of 0.05 - 0,1ct/kWh4. The companies have to proof that

they are running an energy efficiency system.

Passing-on clause Grid operators have the right to pass on all surcharge payments to the suppliers

Tenders At the latest from 2017 onwards the amount of the subsidies for renewable-based electricity should be determined

through a tendering model/bidding system. Pilot tenders for ground-mounted PV conducted in 2015.

1 Source: German Energy and Water Association (BDEW) 2015 based on TSO reports.

2 Depends on type of company and fiscal year.

3 Depending on electricity cost in relation to gross production value.

4 Depending on type of company.

Regulation


German Renewable Energy Act (II)

1 Depends on size of plant, specification, year of commissioning and technology, shown rates apply for direct marketing with market premium (fixed tariff level is

reduced by 0.2-0.4 ct/kWh depending on technology)

Source: German Renewable Energy Act effective as of 1 August 2014.

Subsidy rates taken from the German REA effective as of 1 August 20141

ct/kWh

Hydropower 3.50 – 12.52

Landfill gas, sewage gas, pit gas 3.80 – 8.42

Biogas from biological waste or liquid manure 13.38 – 23.73

Biomass 5.85 – 13.66

Geothermal energy 25.20

Photovoltaics 9.23 – 13.15

Wind power onshore

offshore

4.55 – 8.90

3.90 – 19.40

Regulation




MARKET BEYOND EN

ERGY

EFF

ICIE

NCY

SUPPLY DOWN STREAM

PRICES NETWO

RK

CUSTOMER DECENTRAL

EUROPEAN

STO

RAGE

NEW

MODELS

PLUS

POWER

VISION REGULATED

COMPETITION GROWTH

GRO

WTH

BUSINESS SM

ART

COOPERATION

INNOVATIO

N

VALU

E ST

RONG

CONNECTED

CONSUMPTION

PEOPLE

PROSUMER

EMOB

ILIT

Y

SMART GRID

SMAR

T COU

NTRY

PHOTOVOLTAICS SERVICES

SAVINGS

KEY

PLAY

ER

SUCCESS STORY

ENERGY

HOME

RWE Downstream operations


Earnings contribution to RWE Group Downstream business

Distribution Retail

» Asset

management

of RAB1

» O&M costs

» Regulatory

management

» Sales margin

» Customer base

» Operating costs

» Selective growth

investments

Value drivers

Operating

result 2014:

~ €4.0 billion

73% Distribution & Supply

Of which

circa 56%

is regulated

Strong and stable earnings contribution

with additional growth potential.

More than 70% of group profit contributed by

downstream activities

Overview

» IT capabilities

1 RAB = Regulated asset base


Electricity Gas Energy+1 +

Electricity Gas Grid:

Retail:

Germany

UK

NL+BE

Poland

Slovakia

Romania

Turkey Slovenia

Croatia

Czech

Hungary

+

+

+ +

+

+

RWE: European downstream power house

Overview

1 Energy+ is defined as energy service products independent of or in addition to the distribution and supply of commodities.

+

+

https://www.rwebrandmanager.com/download.html?file=fileadmin/user_upload/Content/Kurzinfos_und_Richtlinien/Piktogramme/Icons_gesammelt/EPS-Dateien/RWE_Icon_54.eps&page=459

https://www.rwebrandmanager.com/download.html?file=fileadmin/user_upload/Content/Kurzinfos_und_Richtlinien/Piktogramme/Icons_gesammelt/EPS-Dateien/RWE_Icon_33.eps&page=459


> Strong pan European Retail organisation with

23 million customers

> Decentralised energy market models as

opportunity for growth in retail business

> Innovation: growth catalyst for new products

and services

> Single digit earnings growth rate is envisaged in

the mid-term

> 5 countries: 550,000 km grid

> Best in class grid management

> Investments of > €3 billion

between 2015 and 2017

> Additional growth potential from smart

technologies

> Single digit earnings growth possible in

the long term

Distribution networks Retail

RWE: leading position in grid and retail in Europe

Overview

RWE Deutschland


RWE Deutschland

In RWE Deutschland AG we have pooled the Group’s German distribution

network, sales and energy efficiency operations since January 2011. It is the

RWE Group’s largest affiliate, encompassing the German regional companies

enviaM, LEW, Süwag and VSE. Furthermore, the company holds direct stakes in

some 70 regional and municipal utilities.

Significant importance is accorded to partnerships with municipalities. Via its

subsidiaries, RWE Deutschland ensures the reliable and efficient operation of

electricity, gas and water distribution networks in more than 3,000 cities and

communities and – in several regions – is responsible for street lighting.

Furthermore, it offers innovative energy services. For example, RWE

Deutschland creates intelligent networks for electric cars and conducted a field

trial on smart metering in Mülheim an der Ruhr.

331,000 km length of electrictity

distribution grid

Introduction


RWE Deutschland – key figures (I)

External electricity sales 2014 (billion kWh)

Industrial and

corporate customers 30.2

Residential and

commercial customers 20.7

Distributors 74.4

125.3

> 3,000 supplied

Municipalities

Key figures 2014


EBITDA (€ million) 2,650

Operating result (€ million) 1,871

Workforce1 18,412

6,730 6,696 6,693

2012 2013 2014

Electricity customers

thousands


Introduction


RWE Deutschland – key figures (II)

Earnings contribution to RWE Group

Gas customers

thousands

External gas sales 2014 (billion kWh)

Industrial and


Residential and


Distributors 49.4

90.2

48,000 km length of gas

distribution grid

1,302 1,305 1,290

2012 2013 2014

Operating

result

RWE Group

2014:

€4.0 billion

Supply/Distribution

Networks Germany

47%

Introduction


Electricity and gas price development and

breakdown in Germany

Cost breakdown of electricity for

household customers (%)

Cost breakdown of gas for household

customers (%)

Taxes, levies

and fees 52%

Supply 25 %

Network 23%

Taxes, levies

and fees 25%

Supply1 54%

Network 21%

Development of electricity prices for household

customers

€ ct/kWh

Development of gas prices for household

customers

€ ct/kWh

1 Including metering and billing. Source: Federal Network Agency, April 2014;

Annual consumption of ca. 25,000 kWh.

5.71 6.40 6.48 6.89 6.81

2011 2012 2013 2014 2015

Source: Eurostat 2014; incl. taxes, levies and fees;

Annual consumption of ca. 20 – 200 GJ.

Source: German Energy and Water Association, March 2015;

Annual consumption of ca. 3,500 kWh.

Source: German Energy and Water Association, March 2015;

Incl. taxes, levies and fees; Annual consumption of ca. 3,500 kWh.

25.23 25.89 28.84 29.14 28.81

2011 2012 2013 2014 2015

Market Data

Regional variation in consumer prices may occur.


Government inflates German electricity bills

€/month

+263%

Average monthly electricity bill of a three-person household in €

(annual consumption: 3,500 kWh/a)

Taxes, levies & fees

Renewable Energy Act, Combined Heat and Power Act, concession fees, electricity tax and value-added tax

Net electricity prices

Generation, transmission, distribution, metering, sales and marketing

Source: German Energy and Water Association, March 2015.

Change (1998 = 100%)

+68% total increase

1998-2015

49.90 48.21

40.66 41.76 46.99

50.14 52.39 54.42 56.76

60.20 63.15

67.69 69.09 73.59 75.51

84.13 84.99 84.02

38.03 34.21

25.52 25.40 28.67 30.28 32.03 33.10 34.56 35.93

38.27 41.56 40.89 40.63 41.72 42.44 40.86 40.49

11.87 14.00

15.14 16.36 18.32

19.86 20.36 21.32

22.20 24.27

24.88 26.13 28.20

32.69 33.79

41.69 44.13 43.53

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

+267%

+6%

Market Data


Churn rate of residential customers steadily increasing

Source: German Energy and Water Association, July 2015.

8.0%

11.0%

18.9%

20.7% 21.7%

25.8%

29.7% 31.2% 31.9%

Churn rate of electricity customers (%, accumulated)

Million customers

8.0%

7.0 8.0

11.0

18.9 20.7

21.9

25.8

29.7

33.5 36.1

38.6

Nov05

Nov06

Nov07

Dec08

Oct09

Oct10

Oct11

Oct12

Oct13

Oct14

Jul15

2.7 3.1 4.3 7.4 8.3 8.8 10.3 11.8 13.6 14.6 15.7

Churn rate of gas customers (%, accumulated)

Million customers

8.0% 1.0

6.8

10.9 12.3

14.1

17.8

25.6 27.6

30.2

Nov07

Dec08

Oct09

Oct10

Sep11

Sep12

Sep13

Sep14

Jul15

0.1 0.7 1.1 1.2 1.4 1.8 2.6 2.8 3.0

Market Data


Pan-European comparison of household

electricity and gas prices

9.02

9.06

9.82

10.13

10.40

10.43

10.50

10.97

11.51

11.82

11.87

11.94

12.06

12.16

12.37

12.69

12.94

13.01

13.10

14.20

14.31

14.40

14.68

16.31

16.78

18.61

19.15

20.85

Hungary

Romania

Estonia

Croatia

Turkey

Czech Republic

Finland

Poland

Slovenia

Norway

Malta

Sweden

France

Greece

Slovakia

Netherlands

Austria

Portugal

Denmark

EU 28

Luxemburg

Germany

Italy

United Kingdom

Belgium

Spain

Cyprus

Ireland

Electricity prices excluding all taxes and levies

for households in € ct/kWh

Source: Eurostat, 2nd half of 2014 (average); prices excl. taxes and levies;

annual electricity consumption of 2,500–5,000 kWh; annual gas consumption 20–200 GJ; rounding differences may occur;

DECC 2014 (UK figures)

1.53

2.76

3.08

3.42

3.80

3.87

3.92

3.94

4.07

4.10

4.13

4.32

4.58

4.65

4.67

4.79

5.01

5.13

5.40

5.55

5.88

6.20

6.26

6.26

6.26

6.47

7.69

8.02

Romania

Hungary

Turkey

Denmark

Croatia

Lithuania

Estonia

Bulgaria

Poland

Serbia

Latvia

Slovakia

Lxemburg

Czech Republic

Slovenia

Netherlands

Belgium

Germany

Austria

EU 28

United Kingdom

Ireland

France

Italy

Sweden

Greece

Spain

Portugal

Gas prices excluding all taxes and levies

for households in € ct/kWh

Market Data


German households rank second in terms of

state-caused charges on electricity bills in the EU

5%

18%

18%

18%

18%

19%

19%

19%

21%

21%

21%

22%

23%

26%

27%

27%

29%

29%

31%

32%

32%

32%

35%

36%

37%

42%

52%

57%

Malta

Luxemburg

Ireland

Belgium

Czech Republic

Cyprus

Slovakia

United Kingdom

Turkey

Hungary

Spain

Poland

Croatia

Estonia

Netherlands

Romania

Norway

Slovenia

France

Finland

EU 28

Greece

Austria

Sweden

Italy

Portugal

Germany

Denmark

Share of state caused charges on electricity bills

for households

9%

9%

11%

17%

17%

17%

17%

17%

17%

18%

19%

19%

20%

20%

21%

21%

21%

23%

23%

23%

25%

26%

26%

34%

42%

45%

52%

61%

United Kingdom

Serbia

Lxemburg

Bulgaria

Slovakia

Ireland

Latvia

Czech Republic

Turkey

France

Poland

Greece

Spain

Croatia

Estonia

Lithuania

Hungary

EU 28

Portugal

Belgium

Germany

Austria

Slovenia

Italy

Netherlands

Sweden

Romania

Denmark

Share of state caused charges on gas bills

for households

Source: Eurostat, 2nd half of 2014 (average); annual electricity consumption of 2,500–5,000 kWh;

annual gas consumption 20–200 GJ; rounding differences may occur; DECC 2014 (UK figures)

Market Data


Pan-European comparison of industry electricity and

gas prices

Electricity prices excluding all taxes and levies

for industial customers in € ct/kWh

Gas prices excluding all taxes and levies

for industrial customers in € ct/kWh

6.87 7.10 7.36 7.53 7.69 7.79 7.86 7.86 8.08 8.09 8.09 8.22 8.32 8.67 8.73 8.79 8.92 9.15 9.28 9.61

10.34 10.48 10.52 10.52

11.10 11.29

12.33 18.31 18.59

FranceRomaniaSlovenia

MontenegroNetherlands

TurkeyPolandAustria

GermanyCzech Republic

EstoniaHungaryBulgariaCroatia

DenmarkBelgium

EU 28Lithuania

LxemburgLatvia

GreeceUnited Kingdom

PortugalItaly

SpainSlovakia

IrelandCyprus

Malta

2.11 2.57 2.65 2.76

2.90 2.93

3.24 3.31 3.32 3.34 3.42 3.42 3.54 3.56 3.59 3.60 3.61 3.63 3.69 3.74 3.76 3.80 3.83 3.85 3.88 3.96

4.10 4.37

4.56

RomaniaTurkey

DenmarkBelgium

NetherlandsCzech Republic

ItalyBulgaria

United KingdomAustria

LithuaniaEU 28

EstoniaSwedenPolandFrance

GermanySlovakia

SpainLatvia

HungaryIrelandSerbia

SloveniaLuxemburg

CroatiaGreece

PortugalFinland

Market Data

Source: Eurostat, 2nd half of 2014 (average); prices excl. taxes and levies; annual electricity consumption of 500-2,000MWh;

annual gas consumption 10,000-100,000 GJ; rounding differences may occur; DECC 2014 (UK figures)


German industry rank second in terms of

state-caused charges on electricity bills in the EU

Share of state caused charges on electricity bills

for industrial customers

5%

11%

16%

17%

18%

18%

18%

19%

20%

21%

23%

24%

27%

28%

28%

28%

29%

29%

30%

32%

33%

33%

35%

37%

38%

40%

48%

59%

65%

MaltaLxemburg

MontenegroIreland

BulgariaTurkey

Czech RepublicCyprus

SlovakiaSpain

PolandCroatia

HungaryEstonia

PortugalNetherlands

SloveniaRomania

GreeceLatvia

BelgiumLithuania

United KingdomFranceAustriaEU 28

ItalyGermanyDenmark

Share of state caused charges on gas bills

for industrial customers

7%

9%

16%

17%

17%

18%

18%

19%

19%

20%

20%

20%

20%

20%

20%

21%

21%

21%

22%

23%

24%

24%

28%

28%

31%

34%

45%

56%

66%

LuxemburgSerbia

ItalyIrelandLatvia

TurkeySpain

FranceBulgariaSlovakia

PolandEstonia

PortugalCzech RepublicUnited Kingdom

LithuaniaCroatiaGreece

BelgiumEU 28

GermanyHungarySlovenia

NetherlandsAustriaFinland

RomaniaSweden

Denmark

Source: Eurostat, 2nd half of 2014 (average); annual electricity consumption of 500-2,000 MWh;

annual gas consumption 10,000-100,000 GJ; rounding differences may occur; DECC 2014 (UK figures)

Market Data


Germany: Import and Export of electricity (2014)

billion kWh

Source: German Energy and Water Association (BDEW).

Export from Germany (physical flows)

Import into Germany (physical flows)

Denmark Sweden

Netherlands Poland

Czech Republic

Austria

France

Switzerland

Germany

Export 74.45

Import 38.88

4.5

4.0 0.7

1.8

0.5 9.2

6.3 3.8

5.5 14.5

0.8 14.8

4.6

11.5

5.7 1.1

24.3 0.3

Luxembourg

Market Data


Length

in km

German

market1

RWE2

Distribution

High voltage 80,500 25,600

Medium voltage 514,000 91,500

Low voltage 1,172,000 213,900

Total 1,766,500 331,000

> Circuit length of 331,000 km

RWE’s German electricity distribution network

1 04/2014 figures. Source: German Energy and Water Association (BDEW).

2 12/2014 figures. Source: RWE Deutschland AG.

RWE network regions in Germany

83,750 substations

Essen

Frankfurt/Main

Stuttgart

Munich

Saarbruecken

Osnabrueck

Koblenz

Gelsenkirchen Dortmund

Chemnitz

Dresden

Leipzig Halle

Ludwigsburg

Grid


Length

in km

German

market1

RWE2

Distribution

High pressure 122,000 6,970

Medium pressure 216,000 26,600

Low pressure 167,000 12,300

Total 505,000 47,780

> Circuit length of 505,000 km

RWE’s German gas distribution network

Grid

35,704

substations

Essen

Frankfurt am Main

Stuttgart

Munich

Saarbruecken

Osnabrueck

Koblenz

Gelsenkirchen Dortmund

Chemnitz

Dresden Leipzig

Halle

Ludwigsburg

RWE network regions in Germany

1 04/2014 figures. Source: German Energy and Water Association (BDEW).

2 12/2014 figures. Source: RWE Deutschland AG.


Smart Grids: Solutions for profitable investments

Grid


Germany’s transmission system operators (2014)

Amprion TenneT 50Hertz TransnetBW

System size [km]

(380 kV and 220 kV) 11,000 10,462 9,765 3,475

Area covered [km²] 73,100 182,000 109,360 34,600

Amprion

50Hertz

TransnetBW

TenneT

Grid


Smart meter regulation in the EU

No CBA or

positive result

Mandatory roll out by 2020.

negative

result of CBA

National implementation

> Negative cost-benefit analysis.

> Rollout for selected customer groups, over 8 years, starting

from 2017 (>20 MWh), 2019 (>10 MWh) and 2021 (>6 MWh).

> Metering point operator is responsible for implementation, can

be DSO or 3rd party.

EU regulation

Germany Netherlands and UK

> Positive cost-benefit analysis.

> Large-scale rollout until 2020.

> DSO is responsible for implementation in NL.

> Supplier is responsible for implementation in UK.

> In the UK, the rollout is for 100% of all consumers for both gas and

electricity.

However, member states had the option

to carry out a cost benefit analysis.

Regulation


Efficient revenue management is key in determining

the profit earned by grid operations

Cost reviews: elimination of elements unique to the baseline year.

Determination of the efficiency figure: based on total cost benchmarking against other grid operators.

Annual adjustment of costs that can be influenced: Consumer Price Index minus x factor (CPI-X) and the expansion factor for the integration of renewables, among other things.

Annual adjustment of costs that can not be influenced: e.g. upstream grid/avoided grid fees, investment measures, incidental staff costs.

Key revenue drivers

Electricity

baseline year

2011 c

osts

Costs not

influenced

by DSO

Costs

influenced

by DSO

Revenue cap

2nd electricity

regulation period

2014 – 2018 2011

4

Deduction resulting

from the cost reviews

1

2

3

4

Second regulatory period for electricity (2014-2018) secured

with a solid cost base and a good efficiency.

Further potential for revenue growth by the recognition of

costs for the integration of renewables.

Results from 2013 negotiations

1

2

3

4

Regulation


7.56 7.14

9.29 9.05

The German Energy Industry Act:

key elements of grid fee calculation (I)

Investments before / since 2006

Electricity

& Gas

Electricity

& Gas

Framework conditions

There is an ex ante approval of the revenue caps, but no ex

ante approval of the grid fees which can be checked ex post

by the Federal Network Agency.

Return on Equity (RoE)

> The permitted proportion of equity-financed assets is

restricted to 40%.

> Current cost accounting for rate of return and imputed

depreciation will continue to apply for all investments

before 31 December 2005.

> All investments as from 1 January 2006,

will yield interest based on the method of inflation-adjusted

historic cost accounting and be subjected to imputed

depreciation.

> We expect a lower RoE in the next regulatory period, as

the base rate is derived from a ten-year average on interest

rates. However, the exact rate cannot be calculated today

and will be determined by the Bundesnetzagentur in 2016.

Tax treatment

> Recognition of corporation taxes since incentive regulation

has become effective (2009).

> Reflected in higher RoE.

> Full recognition of trade tax (pass-through).

Allowed RoE

1st period1

Allowed RoE

2nd period2

Investments before 2006 Investments since 2006

1 Electricity 2009 – 2013, Gas 2009 – 2012.

2 Electricity 2014 – 2018, Gas 2013 – 2017.

%

Regulation


The German Energy Industry Act:

key elements of grid fee calculation (II)

Returns on Equity:

7.14% for existing electricity and gas assets and 9.05% for new investments in the second regulatory

period.

Special treatment of investment in growth and restructuring:

Fast-track treatment of large budgeted growth investment projects by the regulator to ensure adequate

and timely remuneration for utilities. But mostly applicable only for transmission system operators and

high voltage distribution system operators. Distribution system operators can for mid voltage/low voltage

adjust the revenue cap by an expansion factor which covers the sustainable expansion of the networks

within the regulatory period.

Average efficiency of small German electricity distribution companies at 96% indicating average

company-specific efficiency targets of 0.8% p.a. ("individual x factor") in the second regulatory period.

The individual inefficiency has to be eliminated by the end of the period.

Quality component has been established : Electricity distribution companies with a high quality level in

relation to others get a bonus, companies with a low quality get a penalty. Opportunities and risks are

limited by a cap.

Regulation

Conditions for incentive-based regulation

Essent


Essent

Essent is our supply company in the Netherlands and Belgium and one of the

leading energy utilities in the Benelux region. Essent has over 90 years experience

in the electricity business and about 150 years in the gas business. Essent’s

generation business was transferred to RWE Generation in 2013.

In 2014 Essent supplied 2.5 million households and small commercial enterprises

with electricity and 2.2 million with gas.

Essent is a market leader whose ambition is to be the most customer friendly

company in the Netherlands. With its products and services, Essent adds value to

its customers and helps them to reduce energy bills. With innovative products and

services, Essent expanded on its long-standing relationship with customers and

increased customer satisfaction.

4.7 million

customer

contracts

Introduction


Essent – key figures


Industrial and


Residential and



Industrial and


Residential and


20.1

Electricity and gas customers (thousands)


60.6

Key figures 2014




Workforce1 2,688

2,503 2,504 2,176 2,180

2013 2014

Electricity Gas

Introduction


17.62 18.38 18.95 19.15 17.32

0

5

10

15

20

2010 2011 2012 2013 2014

Cost breakdown of electricity 2014

Taxes, levies

and fees 27%

Supply 43%

Network 30%

Source: Eurostat, including taxes.

6.65 7.41

8.44 8.46 8.2

0

2

4

6

8

10

2010 2011 2012 2013 2014


20,13


customers (€ ct/kWh)

Source: Eurostat (2nd half of 2014).

> The average bill in 2020 is expected to be

approximately 2.5 percent (€46 per year) lower than in

2014.

Info box

Source: Netherlands Environmental Assessment Agency,

Netherlands National Energy Outlook 2014.

Development of electricity prices for

household customers (€ ct/kWh)

Breakdown of a typical Dutch customer’s

electricity bill

Market Data

RWE npower


RWE npower

RWE npower is domiciled in Swindon and ranks among the six major energy companies in

the UK. The company supplies electricity and gas to 5.6 million domestic and commercial

accounts, and provides energy services to homes and businesses across the country.

Almost 7,000 employees are working for npower in the UK. In January 2013, RWE npower

became a stand-alone retail business, with a focus on putting customers at the heart of

everything. In 2014, RWE npower supplied 46 billion kWh of electricity and 39 billion kWh

of gas.

Introduction

5.6 million

residential

customers1

1 As of December 2014.


RWE npower – key figures

Electricity and gas customers1 (thousands)


Residential and


Residential and


Residential and


Distributors 5.7


45.7 46.4

Key figures 2014




Workforce2 6,985

thousand

39.0

Distributors 2.0

3,583 3,387

2,322 2,169

2013 2014

Electricity Gas

Industrial and

corporate customers 2.5 1 Residential and commercial customers.


Introduction


Breakdown of a typical British customer`s

electricity and gas bill1


4.22 5.23

5.78 5.88 6.46

0

2

4

6

8

2010 2011 2012 2013 2014


20,13

Development of electricity prices for

household customers (€ ct/kWh)


customers (€ ct/kWh)

14.49 15.84

17.85 17.97 20.13

0

5

10

15

20

25

2010 2011 2012 2013 2014

Cost breakdown of electricity 2014

Between January and June 2015

- 1.6 million electricity customers switched

- 1.3 million gas customers switched.

During this time, around 40% of those who switched across

both fuels moved to independent suppliers.

Info box

Source: Ofgem, 2015.

Wholesale costs

42%

Supplier operating costs

14%

Source: Eurostat (2nd half of 2014).

VAT 5%

Pre-tax margin 9%

Network

costs 23%

Environmental and

social costs 7%

Market Data

RWE East


RWE East

RWE East, headquartered in Prague, is a subsidiary wholly owned by

RWE AG. It began overseeing RWE’s affiliates in Central Eastern and

South Eastern Europe as well as Turkey as of 1 January 2011. These

affiliates include RWE Česká republika in the Czech Republic, RWE

Hungária in Hungary, RWE Polska in Poland, RWE Slovensko in

Slovakia, RWE Hrvatska in Croatia and RWE Turkey. RWE East also

heads up projects in Romania and entered the Slovenian electricity

market in 2015.

In 2014, the company sold about 25 billion kWh of electricity as well as

43 billion kWh of gas.

Introduction

RWE East is the umbrella company covering activities in

Central, South-Eastern Europe and Turkey.


RWE East – key figures


Industrial and


Residential and



Industrial and


Residential and


25.0


42.5

Key figures 2014




Workforce1 9,978

Distributors 1.8

9,978 employees

Distributors 7.0

Introduction


RWE East active in 7 markets in CEE & Turkey

RWE Hrvatska

Electricity Gas

Market position No. 2 -

Volumes [TWh] 0.6 -

Customers [ths] 98 -

CAPEX (€ m) -

Operating result (€ m) 9

Romania

Electricity Gas

Market position Developing -

Volumes [TWh] < 1 -

Customers [ths] < 1 -

CAPEX (€ m) -

Operating result (€ m) -

RWE Turkey

Electricity Gas

Market position B2B established -

Volumes [TWh] 0.5 -

Customers [ths] < 1 -

CAPEX (€ m) -

Operating result (€ m) -4

Figures 2014

1 Day-to-day CAPEX.

2 VSE at equity until 31.08.2015. Since 01.09.2015 VSE Group is fully consolidated (if fully consolidated by end of 2014: d-t-d CAPEX of € 54m, OR of € 79m).

RWE Česká republika

Electricity Gas

Market position No. 5 No. 1

Volumes [TWh] 2 31

Customers [ths] 265 1,397

CAPEX1 (€ m) 152


RWE Hungaria

Electricity Gas

Market position No. 2 -

Volumes [TWh] 16 -

Customers [ths] 2,115 -

CAPEX1 (€ m) 101


RWE Polska

Electricity Gas

Market position No. 5 Developing

Volumes [TWh] 6 1

Customers [ths] 895 < 1

CAPEX1 (€ m) 57


RWE Slovensko

Electricity Gas

Market position No. 3 No. 2

Volumes [TWh] 3 11

Customers [ths] 481 119

CAPEX1 (€ m) -2


Core markets Developing markets

Introduction


RWE East businesses along the value chain –

a significant part is regulated

Generation

(electricity)

Storage

(gas) Distribution Retail

Regulated business accounts for 50% of RWE East operating results

1

1

1

Czech

Republic

Hungary

Poland

Slovakia

Croatia 2

1 Smaller generation units.

2 Start up positions.

3 Retail partially regulated (Hungary-households, SMEs and public institutions.

Poland-households; Slovakia-households, CR-control due to super dominant position).

4 VSE pro-forma deemed consolidated.

fully regulated

partially regulated3

Grid lengths (2014)

Electricity Grid km

Hungary 67,060

Poland 16,505

Slovakia4 22,108

Gas Grid km

Czech Republic 64,895

Introduction


Regulated business – overlapping national regulatory

periods stabilise operating result of RWE East

2011 2012 2013 2014 2015 2016 2017 2018

CZ 3rd period

HU 4th period

PL 2nd

SK 3rd

CZ 4th under preparation

HU 5th period

PL 3rd period

SK 4th period

» RAB based regulatory model (Revenue

cap)

» Margin based regulatory

model (Price cap)


cap/Price cap)


cap)

Regulatory periods Regulatory model

Regulation


Regulation in RWE East grid business

Regulation

Others

(Country specific)

Allowed return

(2014 data) Depreciation Opex

HU

> K – factors (weather

dependency)

> Allowed overflows and

technological consumption

> RAB: ~ €1.5bn

> WACC: ~5.9%

> Based on planned

depreciation (adjusted

by revaluation)

> Depreciation period

of pipes: 40 years

> General efficiency factor

RPI1-X where X=2.0% p.a.

for IIRP

> No individual efficiency factor

> TPS (Renewable support

scheme)

> Allowed return affected by

special coefficient (2015) which

reflects fulfilment of required rate

of investments into the grid

> RAB: ~ €0.4bn

> WACC: ~ 6.0%

> Based on RAB value


of lines: 35 years

> General efficiency factor

RPI-X (where X=3.5%)

> Quality regulation (automatic

compensation payments)

> No individual efficiency factor

> Smart Metering Incentive

(additional WACC) for

approved pilot projects

> Quality regulation as of 2016

> RAB: ~ €0.6bn

> WACC: ~ 7.2%

> Based on asset base

value


of lines: 40 years

> Benchmark based

> Efficiency factors

> Individual efficiency factor

> Price cap

> Cable tax and Robin-Hood

tax are not acknowledged

> RAB: ~ €0.9bn

> WACC: ~ 6.2%

> Malus model based

on current investment

within tariff period

> Based on

replacement value


of lines: 40 years

> Benchmark based

> Quality regulation

> Transfer-price analysis

PL

SK

CZ Gas

2016-

2018

NRP2

Electr.

2017-

2021

Electr.

2016-

2020

Electr.

2017-

2020

1 RPI = Retail price index.

2 NRP = Next regulatory period.

Investor Relations


RWE AG Investor Relations – contacts

Dr. Stephan Lowis

Vice President Investor Relations

Tel. +49 201 12-15031

[email protected]

Contacts for Institutional Investors & Financial Analysts

Martin Vahlbrock

Tel.: +49 201 12-15055

[email protected]

Dr. Burkhard Pahnke

Tel.: +49 201 12-15182

[email protected]

Marcel Rohrbach

Tel.: +49 201 12-15043

[email protected]

Gunhild Grieve

Tel.: +44 207 015-5459

[email protected]

Dr. Holger Perlwitz

Tel.: +49 201 12-15141

[email protected]

Martin Jäger

Tel.: +49 201 12 -15106

[email protected]

Contact for Private Shareholders

Marisa Weiskirch

Tel.: +49 201 12-44915

[email protected]


Further information

Please also see our other publications available at www.rwe.com/ir:

> RWE Company Presentation

> RWE Credit Factbook

> RWE at a glance

> RWE Factbook Renewable Energy

http://www.rwe.com/ir

http://www.rwe.com/web/cms/mediablob/de/649048/data/2495606/76/rwe/investor-relations/praesentationen-videos/praesentationen/RWE-company-presentation-Focus-on-financial-strength-2014.pdf

http://www.rwe.com/web/cms/mediablob/de/2090492/data/2495606/6/rwe/investor-relations/praesentationen-videos/praesentationen/Credit-Factbook-2013.pdf

http://www.rwe.com/web/cms/mediablob/de/2090492/data/2495606/6/rwe/investor-relations/praesentationen-videos/praesentationen/Credit-Factbook-2013.pdf

http://www.rwe.com/web/cms/mediablob/de/1575968/data/2495606/13/rwe/investor-relations/praesentationen-videos/praesentationen/RWE-Auf-einen-Blick-August-2014.pdf

http://www.rwe.com/web/cms/mediablob/de/108824/data/2495606/30/rwe/investor-relations/praesentationen-videos/praesentationen/RWE-Fact-Book-Renewable-Energy-April-2014.pdf




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