Rwe Ag · XETR:RWE
Rwe — ESG Presentation (September 2010)
32 slides from Rwe's sustainability presentation, September 2010
Slide 1: RWE – A Sustainable Investment
RWE – A Sustainable Investment Company Presentation September 2010
Slide 2: What's new?
What‘s new? > RWE‘s long-term climate protection target on RWE‘s carbon dioxide exposure now referring to CO2 emissions per megawatt hour (MWh) of electricity generated > Executive Board compensation system adapted to sustainability and employee satisfaction > KPIs and targets defined for each of RW
Slide 3: Our CR strategy: Ten fields of action (I)
Our CR strategy: Ten fields of action (I) Our objectives are based on both what society expects of us as an responsible energy supplier and on those issues which in our view are crucial to our sustainability as a business. Field of action We are committed… KPIs Target Climate protection …to signific
Slide 4: Our CR strategy: Ten fields of action (II)
Our CR strategy: Ten fields of action (II) Field of action We are committed… KPI Target Demographic change …to ensuring the long-term availability of sufficient Demographic Index1 Average position among numbers of appropriately skilled personnel. comparable companies Supply chain …to avoiding reputa
Slide 5: ESG and financial data at RWE Group
ESG and financial data at RWE Group Financial Environmental 2009 2008 2007 2009 2008 2007 External revenue €million 47,741 48,950 42,507 Specific CO2 mt/MWh 0.796 0.768 0.866 emissions EBITDA €million 9,165 8,773 7,915 Share of % 3.5 2.4 2.4 renewables1 Operating result €million 7,090 6,826 6,533 Ne
Slide 6: RWE: A leading European power generator using a broad mix of energy sources
RWE: A leading European power generator using a broad mix of energy sources Germany (country): UK (country): Power produced in 20091 in TWh Power produced in 2009 in TWh Renewables 3.6 Other 1.9 Renewables 1.0 Other 0.2 Gas 11.7 Nuclear 33.9 Total Total 147.5 Gas 15.8 27.7 Hard coal 31.1 Lignite 65.
Slide 7: RWE generation mix
Prepared for post-Kyoto: Our generation portfolio is set to be 75 % “zero or low carbon” by 2025 Capacity 2009 Capacity 2025: ~65 GW Pump storage, other Pump storage, other RWE generation mix (capacity in %) Renewables Renewables Lignite & hard coal Gas 75% Nuclear Lignite & Nuclear hard coal Gas Ou
Slide 8: Our strategy to reduce the impact of CO2 on our P&L in 2013
Our strategy to reduce the impact of CO2 on our P&L in 2013 (As of February 2010. Mid-term targets are under review; announced in August 2010) Certificates to be Operating Result Offsetting purchased1 2009 – 2013 factors in million t p.a. Organic growth/ 160 – 170 +100 2013 above 2009 High earnings
Slide 9: Compared to the marginal plant RWE's portfolio is already today financially slightly long CO2
Compared to the marginal plant RWE‘s portfolio is already today financially slightly long CO2 Pass-through factor > Factor by which CO2 price is reflected t/MWh in power price 0,9 > Set by marginal plants which on average have a 0,8 higher emission factor than the market portfolio 0,7 Long RWE speci
Slide 10: Managing CO2: We complement physical measures by comprehensive financial optimisation
Managing CO2: We complement physical measures by comprehensive financial optimisation > Our large low carbon new-build programme as well as our investments in renewables will lead to substantial improvement of our CO2 intensity until 2013 > For phase 3 (2013-2020) we aim to reach a “market average”
Slide 11: Physical measures: New-build projects can reduce our CO2 exposure by some 14% by 2013
Physical measures: New-build projects can reduce our CO2 exposure by some 14 % by 2013 CO2 reduction by 2013 Shutdowns / New-build projects load factor reductions Relative Absolute Lingen 887 MW 0.34t/MWh Fossil mix 4 TWh 0.75t/MWh -0.41 t/MWh -2 m t p.a. BoA Neurath 2,100 MW 0.95t/MWh Lignite 2,160
Slide 12: Non-physical measures: Balancing CO2 risks
Non-physical measures: Balancing CO2 risks CDM/JI > Allowance to cover up to 100 million tons via CDM/JI projects > Secured projects to procure 75 million tons of CO2 (44 million tons of CO2 adjusted for project risks) > Average achieved project price below current market price for Certified Emissio
Slide 13: Continuous investment commitment: €28 bn capex programme 2010 – 2013
Continuous investment commitment: €28 bn capex programme 2010 – 2013 (As of February 2010. Mid-term targets are under review; announced in August 2010) €7.0 bn p.a. Committed capex +/- 10% 95% Other €100m p.a. 80% 55% 50% Upstream €1,000m p.a. Renewables €1,400m p.a. 2010 2011 2012 2013 Up to half o
Slide 14: Renewable energy in RWE Group today: A leading renewables generation position in Europe
Renewable energy in RWE Group today: A leading renewables generation position in Europe > 2.5 GW operational renewables assets RWE Group renewable energy capacity in (end 2009) account for roughly operation by technology and country (Accounting view1 + PPA, as of December 31, 2009) - 5% of the Group
Slide 15: We plan to increase the installed generation capacity significantly
We plan to increase the installed generation capacity significantly Capacity growth targets (in GW, pro rata) Ramp-up capacities until 2013 12 Assets in operation or under construction Target capacity: 4.5 GW > 10 10 Assets under construction 8 Assets in operation RWE Innogy 2.6 GW 6 4.5 4 1.7 2 2.6
Slide 16: RWE Innogy's project pipeline
RWE Innogy’s project pipeline (as of 31 December, 2009) Project pipeline by technology & status (electricity generation capacity in GW, accounting view + PPA1) 7.5 17.1 > Total pipeline with projects until 2020 amounts to 17.1 GWel – up by more than New Applications 30 % year-on-year Hydro > Strongl
Slide 17: RWE Innogy target portfolio (2014)
Risk diversification across technologies, regions and support mechanisms … generation capacity … electricity generation Biomass Onshore RWE Innogy target portfolio (2014) by … Wind Hydro Biomass Onshore Wind Offshore Offshore Wind Hydro Wind … country (electricity generation) … support mechanism (el
Slide 18: RWE to gain leadership in Europe in virtually CO2-free power plant technology
RWE to gain leadership in Europe in virtually CO2-free power plant technology RWE Power is considering developing and building a virtually CO2-free 450 MW coal-fired IGCC1) plant including CO2 transport and storage to demonstrate the whole CCS2)-chain. The new power plant would be fuelled by Rhenish
Slide 19: RWE's current Kyoto credit portfolio
RWE’s current Kyoto credit portfolio Projects by June 2010 Contract volume by technology Hydro 100 N2O HFC23 90 Energy Efficiency Wind 80 Biogas CMM 70 ERPA1 Biomass Methane avoidance 100 mill. certificates 60 Solar others 50 In ERPA1 Validation 40 In Contract volume by region 30 Validation China 20
Slide 20: We assist customers in increasing energy efficiency
We assist customers in increasing energy efficiency > New RWE energy efficiency company In the supply area, a new company has been set up on 1 July 2009 to promote all energy efficiency efforts and energy services within the Group. RWE sees significant potential for business growth in this area, wit
Slide 21: Increasing energy efficiency – three examples
Increasing energy efficiency – three examples “5,000 Town Halls” project > RWE assists municipalities in its German sales regions by bearing the costs of analyzing their energy consumption in these properties. > Our aim is to encourage municipalities to modernize their town halls and other public bu
Slide 22: Smart and mass-market capable charging infrastructure system developed
Smart and mass-market capable charging infrastructure system developed OVERVIEW OF THE RWE E-MOBILITY TECHNOLOGY CONCEPT Internationally recognised technology leader GSM with about 20 patents VDE- > Fast charging on alternating current basis (AC) standard > 3-phase, 400V, up to 64 A, up to 44kW plug
Slide 23: First mobility products for consumers developed with leading automotive manufacturers
First mobility products for consumers developed with leading automotive manufacturers OVERVIEW OF CONSUMER PRODUCTS e-Mobility > Together with Daimler Sixt rental > Rentals of 5 Fiat 500 or Berlin marketing of 100 Smart eds product Fiorino in 4 German cities in Berlin with smart charging > Per day E
Slide 24: The all-round no-worries package for private and fleet customers
The all-round no-worries package for private and fleet customers B2C BUSINESS MODEL e-mobility Product h h > RWE-developed, intelligent quick-charge Public quick- infrastructure system charging infrastructure > Plug & Charge: Pay and authenticate via charging cable > Mass market-capable Individual >
Slide 25: Flexible cooperation models for infrastructure partners
Flexible cooperation models for infrastructure partners B2B BUSINESS MODEL Partner products for infrastructure providers Installation of publicly accessible infrastructure (Public utilities and top companies) Provision by RWE, public utilities and municipalities Product structuring ongoing Provision
Slide 26: We attach great importance to effective and transparent corporate governance
We attach great importance to effective and transparent corporate governance > RWE complies with all of the recommendations of the German Government Corporate Governance Code Commission issued in the 5 August, 2009 version of the Code. As a result, RWE’s latest compliance declaration dated February
Slide 27: Sustainability is part of Executive Board Compensation
Sustainability is part of Executive Board Compensation > Payment of a 25% share of the bonus will be postponed for three years. > The systems has been adapted to bring it more in line with sustainable business development. > In April 2010, the Annual General Meeting endorsed the new Executive Board
Slide 28: In 2009, RWE has spent €2,229 million on environmental protection
In 2009, RWE has spent € 2,229 million1 on environmental protection Climate protection €1,482 million 66% Clean air2 €345 million 15% Waste disposal €172 million 8% Water protection3 €127 million 6% Landscape conservation4 €87 million 4% Noise abatement €10 million 1% Restoration of contaminated sit
Slide 29: Supply chain responsibility – hard coal
Supply chain responsibility – hard coal > Total volume of hard coal purchased in 2009: 13,170,832 metric tonnes 2 > Purchase of coal for power plants of RWE and Essent is done through RWE Supply & Trading. > The Code of Conduct is anchored in the entire sourcing process from RWE Supply & Trading and
Slide 30: RWE scores well in sustainability ratings
RWE scores well in sustainability ratings DJ Sustainability Index 2010 Vigeo 100 89 89 Member since 1999 90 83 79 80 81 80 74 70 57 59 57 60 RWE 52 50 Industry average 43 Best Score 40 30 20 10 0 Economic Environmental Social Dimension Total Dimension Dimension Carbon Disclosure Project 2009 Oekom R
Slide 31: Structure of CR management at RWE
Structure of CR management at RWE Executive Board of RWE AG Strategic decisions Objectives Recommendations CR Coordination Committee of Executive Board Members Operational decisions Uptake of relevant Unit Corporate Responsibility/ developments Targets Reporting Environmental Protection Assessment o
Slide 32: Further Information
Further Information RWE Annual Report 2009 www.rwe.com/ir RWE Corporate Responsibility Report 2009 www.rwe.com/responsibility Page 32