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Investor PresentationAs of May 2021
Page 2Investor PresentationMay 2021
This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialisation of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.
Disclaimer
Our energy for a sustainable life
We all need electricity – children as well as adults, small companies as well as large ones. Wherever there is electricity, there is light, warmth and communication, production,medical care and mobility. Electricity is life.
May 2021 Investor Presentation
Page 4Investor PresentationMay 2021
Uniquely positioned to benefit from the energy transition
Attractive growth opportunities in renewable energy
Strict focus on value creation and shareholder return
Strong commitment to sustainable development goals
Highly motivated team incentivised to deliver strategic targets
Creating value in the renewable energy worldInvestment highlights
Page 5Investor PresentationMay 2021
Note: Pro rata installed capacity. Figures as of 31 Dec 2020.
We are ideally positioned for the new energy world
Global commodity trading & commercial asset optimisation
Global analyst platformis key to our success
Commodity solutions for
GW in hydro, biomass andgas plants
Thereof GWpumped storage/batteries
bcm of gas storage
Strong wind and solar businessExperienced operatorof flexible assets Leading commercial platform
GW installedWind/Solar capacity
GW installed capacity at Wind/Solar by
GW develop-ment pipeline blue chip
customers
Wind/Solar growth ambitions for 2020 – 2022
Page 6Investor PresentationMay 2021
1 Calculated for generation portfolio of core business. | Note: Figures for FY 2020.
Business model fully aligned with our strategic focuson the energy transition
Supply& Trading
Onshorewind/Solar
Core Coal/Nuclear
• Trading/origination• Gas & LNG• Commodity
solutions• Energy Transition
Investments• Gas storage
business
• Onshore and solar operations in • Europe & APAC• Americas
Offshorewind
• Global offshore activities
Hydro/Biomass/Gas
• Hydro, biomass and gas plants in Germany, UK, Netherlands
• Hydrogen projects• Kelag stake
• German lignite operations; mines and plants
• German hard coal plants
• German nuclear power plants
• Holding in Dutch EPZ (nuclear)
Carbonfactor1
g/kWhof capex complywith proposed criteriaof EU taxonomy
%
average net growth p.a.
GWnet capex planfor 2020 – 2022
bn
Page 7Investor PresentationMay 2021
1 Pro rata, excluding storage. | 2 Adj. EBITDA restated. | 3 Including Feed-in tariffs (FiTs), contracts for difference (CfDs), fixed certificates and PPAs/Tax credits; as of 31 Dec 2019. | 4 Includes assets in operation and under construction with CfDs/FiTs, fixed certificates, PPAs/Tax credits; as of 31 Dec 2019. | Note: Figures as of 31 Dec 2020. Rounding differences may occur.
Powerful position in wind and solar
Installed capacity by technology1 Installed capacity per country1 Wind/Solar adj. EBITDA 20202
25%
73%
Offshore
Onshore
2%
Solar
9.4 GW 9.4 GW
Increasing capacity
GWProjects under construction
Offshore Wind
Onshore Wind/ Solar Americas
Onshore Wind/ Solar Europe & APAC
Regulated or secured3
Years weighted average remaining contracted tenor4
High level of earnings stability
15%
21%43%
Germany
UK
3%Netherlands
PolandSpainItaly
US
ROW
4%
4%
5%5%
67%
24%
9%
€1.6 bn
of core adj. EBITDA
Page 8Investor PresentationMay 2021
Note: Development pipeline of 34 GW excluding central tender/lease auctions. Figures as of 31 Dec 2020. Events after this date, namely the 3GW award from UKR4 leases is reflected in the numbers. | Rounding differences may occur.
Renewable energy growth underpinned by growing development pipeline
Development pipeline per technology and region, GW pro rata
~8.0
Onshore/SolarEurope/APAC
Onshore/SolarAmericas
2.86.1
6.8 ~15.6
Americas APAC
Additional central tender/
lease auctionEurope
Delta Nordsee 1&2 0.5 GW
Nordsee Two&Three 0.1 GW
UKR4 lease projects 3.0 GW
Sofia 1.4 GW
Rampion 2 0.6 GW
Awel y Môr 0.3 GW
North Falls 0.3 GW
Five Estuaries 0.1 GW
Dublin Array 0.5 GW
Sharco II & V 1.0 GW
FEW Baltic II 0.4 GW
Södra Midsjöbanken 1.6 GW
Dunkerque 0.2 GW
Chu Feng 0.4 GW
10.2 GW
Offshore
7.0
0.9 0.1
>20GW
10.2
13.1
7.6
2.9
~34 GW
Offshore
Onshore Storage
Solar
FID taken in Q1 2021
Page 9Investor PresentationMay 2021
1 Current expected timelines. | Note: capacity mentioned in pro rata.
Decisive year for offshore in 2021: all systems go for construction, development and preparation for new projects
Under con-struction/Close toFID
Key Develop-mentactivites
Central tender & lease auctionsin 20211
• At Triton Knoll (UK) first turbines safely & successfully installed and first power generated, exp. COD beginning of 2022
• Pre-construction work at Kaskasi (DE) on track, exp. COD end of 2022• FID for 1.4GW Sofia (UK) taken in Mar 2021
• Awarded 3GW in UKR4 seabed auction, project development started• Grid Connection Agreement secured for FEW Baltic II (PL), 350MW
qualified for direct notification and CfD awarded in April 2021• Dublin Array (IE) in preparation for CfD auction late 2021/early
2022, project size now up to 0.9 GW – RWE pro rata share 0.5 GW• Chu Feng (TW) up to 0.4 GW – preparing for participation in grid
allocation round
• Numerous central tender and lease auctions expected in the off-shore market in 2021, e.g.:• Europe: Germany, Denmark, France, Netherlands, UK (Scotwind)• North America: NY Bight (East Coast), California (West Coast)• Asia-Pacific: Japan
Page 10Investor PresentationMay 2021
In 2021 more than 20 onshore, solar and storage projects around the world will contribute ~2GW to RWE’s growth
1 Raymond West: After construction RWE share 25% due to already announced farm-downs. | Note: As of March 2021. | A. Gross Capacity (MW) | B. RWE share | C. RWE capacity, pro rata MW.
Limondale
A. 249B. 100%C. 249
Eekerpolder
A. 63B. 100%C. 63
Groningen Sea Port
A. 9B. 100%C. 9
Scioto Ridge
A. 250B. 100%C. 250
Jüchen
A. 27B. 51%C. 14
Dolice
A. 48B. 100%C. 48
Hästkullen
A. 307B. 20%C. 61
Kerkrade
A. 10B. 100%C. 10
Oostpolderdijk
A. 8B. 100%C. 8
Nowy Staw 3
A. 12B. 100%C. 12
Alcamo II
A. 14B. 100%C. 14
Oostpolder
A. 36B. 100%C. 36
Stephenstown
A. 9B. 100%C. 9
Hickory Park
A. 40B. 100%C. 40
Les Pierrots
A. 26B. 100%C. 26
Björn-landshöjden
A. 168B. 20%C. 34
Panther Creek III repowering
A. 16B. 100%C. 16
Cassadaga
A. 126B. 100%C. 126
Raymond West1
A. 240B. 100%C. 240
Total growth projects~1.5 GW
Total growth projects~0.5 GW
Total growth projects249 MW
AmerCentrale
A. 2B. 100%C. 2
Hickory Park
A. 196B. 100%C. 196
Zukowice
A. 33B. 100%C. 33
Blackjack Creek
A. 240B. 100%C. 240
New
El Algodon Alto
A. 200B. 100%C. 200
New
Page 11Investor PresentationMay 2021
Our engagement in hydrogen continues to take shape and we believe in the central role of H2 in the energy transition
Together with partners, we are active in >30 projects and along the entire renewables and H2 value chain
AquaVentusHeligoland
South Wales Industrial ClusterMilford Haven
Eemshydrogen
Eemshaven
NortH2
North of the Netherlands
FUREC
Prov. Limburg
GET H2
Lingen
H2 BrunsbüttelBrunsbuettel
RostockRostock
HySupplyBerlin
Find out more here: http://www.rwe.com/hydrogenH2• Dedicated Board member for
H2 at RWE Generation defining and implementing RWE’sH2 strategy
• Clean H2 is key to the energy transition achieving national and European climate targets by 2050
• Creating an H2 economy is a long-term endeavour and requires regulatory and financial support. We actively participate in the discussion
• Demand for green H2 will drive global growth of renewables
Page 12Investor PresentationMay 2021
Our energy for a sustainable life – continuous focus on ESG
• Hard coal:
• Ibbenbüren and Westfalen hard coal plants successful in closing auction; moved into grid security reserve until final shut down in summer 2021
• We will no longer run any own hard coal plants in Germany
• Lignite
• Public-law contract regarding coal exit signed
• Niederaußem D under the German coal exit law closed
• Agreement with unions on socially acceptable coal exit for employees reached
• High quality renaturation of former mining areas provides opportunities for communities
• Bloomberg Gender-Equality Index: above average score for the energy sector in the “Inclusive Culture” category
• Share of coal-fired generation and other coal products of total RWE Group revenues was 23% for FY 2020
• Strengthening of governance at the last AGM in April:
• Introduction of shorter election cycles and staggered board system for shareholder elected Supervisory Board Member
• Management Board remuneration scheme including ESG targets, share ownership guideline and clawback
• Renewal of the capital authorisation
Continued reduction of coal capacity
20232019 2020 2030 2038
0.0 GW
12.8 GW 10.8 GW ~8 GW<4.0 GW
ca. -70%
Page 13Investor PresentationMay 2021
1 2019 is the base year for our Science-based Target. | Note: Figures in million tonnes CO2-equivalent. | For more information on our carbon footprint, please visit www.rwe.com/emissions
RWE‘s way to Net Zero in 2040 is fully aligned with Paris Agreement to keep global warming to well-below 2°C
Target to achieve net zero by 2040 includes all direct and indirect GHG emissions (Scope 1, 2 and 3)
Proven track record of carbonemission reductions with -62% power plant emissions in 2020 vs. 2012
Fully supportive and alignedwith Paris Agreement
RWE engaged in leading sustainability initiatives:
Scope 3Upstream and down-stream indirect GHG emissions
22.3
Scope 2Operation-related indirect GHG emissions from the generation of acquired and consumed electricity
Scope 1Operation-related direct GHG emissions
0.6
89.8Scope1 & 2
Scope 3-30%
absolute
-50%specific:
CO2e per kWh
WELL BELOW 2° C
Our 2030 climatetargets are
20191 2030 2040
Page 14Investor PresentationMay 2021
1 RWE Group from May 1, 2021. | 2 Science Based Targets. I 3 ESG Risk Rating Score.
Our commitment to the UN SDGs goes beyond carbon reduction and RWE receives recognition in leading sustainability ratings
Seven SDGs were defined as material in relation to our business activities
• Recultivationprogramme with focus on biodiversity
• Increase in ecology in renaturalisedmining areas
• 38% women on management board1
• Part of 2021 Bloomberg Gender Equality Index; with above average rating for inclusive culture
• Leading operator of wind and solar with > 9 GW installed capacity
• Highly efficient and flexible power plant portfolio
• Strong employer with workforce of ~20,000 people
• Regional support for structural change and energy transition
• Focus on hydrogenand storage technologies to support a carbon-neutral transition for the future
• Strict compliance requirements with RWE’s Code of Conduct
• Member of Bettercoal to promote standards in supply chain
• CO2 reduction by 62 % since 2012
• 2030 emissions targets recognised by the SBT2
Initiative
• Target to be carbon neutral by 2040
Page 15Investor PresentationMay 2021
1 Management target.
Outlook for FY 2021
Adj. EBIT
Core adj. EBITDA
Adj. Minorities
Adj. EBITDA RWE Group
Adj. Financial result
Adj. Depreciation
Adj. Tax
Adj. Net income
1,800 – 2,200
2,650 – 3,050
~-1,500
750 – 1,100
15%
~-150
~-100
1,150 – 1,550
Outlook FY2021, € million
Dividend
• Management target of €0.9 per share for FY2021
Leverage factor
• Below 3.0 net debt/core adj. EBITDA
2021
€0.90
2019
€0.80
2020
€0.851
Page 16Investor PresentationMay 2021
1 EBITDA covers annual capex.
Guidance from CMD for FY 2022 confirmed
Core adj. EBITDA
Adj. Minorities
Adj. Tax
Adj. EBITDA RWE Group
Adj. Depreciation
Adj. EBIT
Adj. Net income
Adj. Financial result
2,550 – 2,850
3,100 – 3,400
~-1,600
1,050 – 1,350
15%
~-150
~-150
1,500 – 1,800
New: Updated for Rampion effect
✓
✓
✓
✓
✓
✓
✓
Offshore Wind
• Support expiry/Transition phase started at German windfarms Nordsee Ost and Amrumbank in 2022 resp. 2023 - from high feed in tariff (194 €/MWh) to intermediate level (154 €/MWh) until final floor price (39 €/MWh):~-€320m in 2023 - 2025
Coal/Nuclear
• Strong earnings decline after nuclear and lignite capacity closures, partly offset by efficiency improvements
• EBITDA of €0 – 200m p.a. from 2023 onwards
• Lignite operations on average cash flow positive1
Adj. Tax RWE Group
• Due to announcement by UK Government regarding the UK corporate tax rate, increase in RWE Group’s general tax rate applied for adj. net income expected in the mid-term
Outlook FY2022, € million Relevant aspects on mid-term earnings outlook
Page 17Investor PresentationMay 2021
Overview Outlook divisions
Outlook FY2021, € million Outlook FY2022, € million
Offshore Wind
Onshore Wind/Solar
Hydro/Biomass/Gas
Supply & Trading
Other/Consolidation
Coal/Nuclear
Offshore Wind
Onshore Wind/Solar
Hydro/Biomass/Gas
Supply & Trading
Other/Consolidation
Coal/Nuclear
Upper half of range
Lower half of range
Adj. EBITDA
Core adj. EBITDA
Adj. EBITDA RWE Group Adj. EBITDA RWE Group
Core adj. EBITDA
Adj. EBITDA
1,050 – 1,250
50 – 250
500 – 600
150 – 350
1,800 – 2,200
800 – 900
2,650 – 3,050 3,100 – 3,400
550 – 650
2,550 – 2,850
150 – 350
500 – 600
650 – 750
1,150 – 1,350
~-100~-100
Strong & important progress on long-term growthMay 2021, Q1 Earnings call
Q1 2021Earnings & Operations
May 2021 Investor Presentation
Page 19Investor PresentationMay 2021
• Adj. EBITDA decreased to €0.9bn mainly due to the one-off from the unprecedented Texas cold snap
• FY 2021 outlook and dividend target of €0.90 per share confirmed
• Net debt decreased significantly to €2.8 bn at the end of March
• Positive credit rating reviews: Fitch and Moody’s, have both upgraded their rating to BBB+ and Baa2 respectively with a stable outlook
• FID taken on 1.4 GW UK Sofia offshore wind farm, which is our largest offshore project in the world to date
• CfD awarded for 350 MW F.E.W. Baltic II project – our first Polish offshore wind farm
• Our target of being carbon neutral by 2040 extended and now includes scope 1 – 3 emissions
• More than 90% of capex comply with the proposed green investment criteria of the EU taxonomy
Q1 2021 – strong & important progress on long-term growth
Page 20Investor PresentationMay 2021
Note: restated adj. EBITDA for 2020 according to change in the accounting for tax benefits as of 1 Jan 2021
Good operational Q1 performance besides setback in the wind/solar business
• Offshore Wind earnings down compared to very strong previous year due to below normal wind conditions
• Onshore Wind/Solar earnings decreased significantly on the back of the negative one-off from the Texas cold snap in Feb 2021
• Earnings at Hydro/Biomass/Gas remained stableat previous year’s level
• High earnings at Supply & Trading slightly above strong previous year
Adj. EBITDA for RWE Group, incl. Coal/Nuclear amounts to 883 (-33%) at Q1 2021
Core adj. EBITDA Q1 2021 vs. Q1 2020, € million
297
213
431
189221
-119
217
170
Onshore Wind/Solar
Supply & Trading
-25
Core adj EBITDA 2021
Core adj. EBITDA 2020
3
Hydro/Biomass/Gas
Offshore Wind
Others/Consolidation
555
1,042-47%
Page 21Investor PresentationMay 2021
Well on course to meet 2022 growth target with 3.7GW currently under construction
Capacity development Wind/Solar, as of 31 Mar 2021
Net changesInstalled capacity
31 Dec 20
-0.5
Installed capacity
31 Mar 21
0.4
COD2022
2.01.7
COD2021
-0.19.4
Changes from transactions
Residual target
Target2022
1.4
COD after 2022
8.9
13.0
Projects under construction/FID
1.5 Onshore0.5 Solar0.05 Battery
0.8 Offshore0.1 Onshore0.5 Solar0.2 Battery
GW pro rata
Note: Information is in pro rata. As of 31 Mar 2021. | Rounding differences may occur.
• 0.5 GW of capacity reductions due to 75% farm-down at Stella, Cranell and Raymond East onshore wind farms. Closing and farm-down at Raymond West is expected in Q2
• FID’s of ~0.7 GW in solar with co-located storage and onshore wind taken, mainly in the US • Integration of remaining 20% stake in the UK offshore wind farm Rampion with closing as of 1 Apr 2021
>
• Addition: Rampion stake of 80 MW• Farm-down: Raymond West
1.4 Offshore
Projects under construction/FID
Sofia
Page 22Investor PresentationMay 2021
Great progress in the UK offshore portfolio - FID taken for1.4GW Sofia project and 3GW seabed on Dogger Bank awarded
Under development
Location Shallow central area of the North Sea known as Dogger Bank
Water depth 20 – 35m
Capacity ~ 1.4 GW (100 turbines, each 14 MW Siemens Gamesa)
RWE pro rata share 100%
Load Factor ~ 50%
Capex ~ £3bn (incl. OFTO)
Subsidy regime 2-sided CfD with a strike price of 39.65 £/MWh1 for 15 years
FID Q1 2021
Construction Onshore start in Q2 2021, offshore start in 2023
Expected COD Project fully operational by end of 2026
Sofia – our largest offshore development project
Key figures
Timeline
UK Round 4 Lease Auction
In operations
Under construction
Location Shallow central area of the North Sea known as Dogger Bank
Water depth 15 – 35m
Capacity 3.0 GW (2 x 1.5 GW)
RWE pro rata share 100%
Awarded Q1 2021
1 2012 prices, linked with CPI.
Page 23Investor PresentationMay 2021
1 General tax rate of 15% for the planning horizon is based on a blended calculation of local tax rates, the use of loss carry forwards and low taxed dividend income, e.g. from E.ON and Amprion.
Adj. net income as expected and in line with the performance of adj. EBITDA
• Adj. EBITDA excludes non-operating result
• Financial result mainly adjusted for tax interests from tax refunds unrelated to the accounting period, among other things
• Adjustments of tax refer to a general tax rate of 15% at RWE Group1
• Adj. minority interest stem from fully consolidated wind/solar projects
Adj. net income, € million
883
340
-335
-130
548
-63
-15
Adj. EBITDAQ1 2021
Adj. depreciation
Adj. financial result
Adj. EBIT
Adj. tax
Adj. minority interest
Adj. net incomeQ1 2021
Q1 2021
967
-357
-233
-110
-10
614
Q1 2020
1,324
Page 24Investor PresentationMay 2021
1 Excludes nuclear provisions since utilisation is not net debt effective and will be refinanced via financial debt.
Adj. operating cash flow impacted by seasonal effects in working capital
• Changes in provisions/(Non-) Cash items among others driven by book gains from the farm-down of Texas wind farms as well as legacy and restructuring provisions
• Changes in operating working capital mainly due to negative seasonal effects from purchase of CO2 certificates. Partly compensated by reduction of gas inventories and decrease of accruals
• Cash financial result mainly impacted by interest payments
• Cash taxes driven by income taxes in the UK
Reconciliation to adj. operating cash flow, € millionQ1 2021
883
-55
Adj. operatingcash flow
Cashfinancial
result
Adj. EBITDA
Changes inprovisions/
(Non-) Cash
items1
-396
-316
Changes in
operatingworking capital
-118-108
Cashtaxes
Page 25Investor PresentationMay 2021
1 Includes pension and wind provisions but excludes nuclear provisions as they are not part of adj. operating cash flow. Furthermore, CTA allocation of €1.1bn with no effect on net debt. Payment is offset by the decrease in pension provisions. | Note: Rounding differences may occur.
Net debt decreased due to timing effects from hedging activities and higher discount rates for pension liabilities
Development of net debt, € billionQ1 2021
• ‘Other changes in net financial debt’ include timing effects from hedging such as variation margins and CO2 provisions of €1.5bn
• ‘Changes in provisions’ driven by decrease of pension provisions due to higher discount rates and good performance of plan assets
Net debt31 Dec 20
Other changes in net financial debt
0.70.1
Adj. operating cash flow
-1.7
Changes in provisions1
Net cash investments
4.4
-0.7
Net debt31 Mar 21
2.8
Creating value in therenewable energy worldMarch 2020, Capital Market Day
Investor PresentationMay 2021
Strategy & Financial UpdateMarch 2020 - CMD
Significant investments to grow wind & solar capacityto >13 GW by 2022
RWE’s core capex programme 2020 – 2022 Gross growth capex by region and technology
Offshore Wind
Onshore Wind/SolarAmericas
Onshore Wind/SolarEurope & APAC
Netgrowth capex
Assetrotation &
divestments
Grossgrowthcapex
Maintenancein core
business
~5
~0.5
~8-9~3-4
~45%
~30%
~25% Germany
UK
Other Europe
Americas
APAC
Offshorewind
Onshorewind
Solar &storage
~10%
~30%
~5%
<5%
<5%
~10%
~20%
<5%
~ 5%
~10%
<5%
Remaining pipeline ~1/3
Committed(FID taken)
~1/3
May 2021 Investor Presentation Page 27
€ bn
Close to FID ~1/3Note: Data as of CMD 2020.
Page 28Investor PresentationMay 2021
Note: Data as of CMD 2020.
Value added by attractive returns in the renewables business
IRR requirements for wind/solar projects
• Investment decisions based on strict hurdle rate approach with project IRR typically exceeding base renewables WACC by 100 to 300 bps
• Hurdle rates include risk premia depending on project risk profile (technology, regulatory and remuneration risk)
• Project returns do not include disposal gains, costs for management support and new markets scouting
• Evaluation of investment decisions include pay back profiles and sensitivity analysis
• Post completion review to monitor investment performance
Offshore Wind
Mature markets
New markets
Onshore Wind/Solar
Europe
US
New markets
5.5% 8.5%
7.0% 10.0%
4.5% 8.0%
5.5% 8.0%
6.5% 9.5%
May 2021
Solid capital structure provides financial flexibility forcore business
Investor Presentation
Net debt(€ million)
31 Dec 2020
Financial assets 11,798
Financial liabilities(incl. hybrid capital adjustment)
4,951
Net financial assets(incl. hybrid capital adjustment)
6,847
Provisions for pensions and similar obligations 3,692
Provisions for nuclear waste management 6,451
Provisions for dismantling wind farms 1,136
Net debt 4,432
1 Net debt/core adj. EBITDA (reported). | 2 As of April 2021.
• Net debt of €4.4 bn after financial ring-fencing of coal phaseout liabilities
• Leverage factor (net debt/core adj. EBITDA)
• 2020 leverage factor1
• Targeted leverage factor of ≤3.0xfor 2020 - 2022
• Investment grade rating2
• Fitch: BBB+ with stable outlook
• Moody’s: Baa2 with stable outlook
Page 29
Commitment to financially ring-fence coal phaseout liabilities with financial portfolio
• Provisions for mining liabilities reflecting accelerated coal phaseout total €4.8 bn
• Agreement with German government includes compensation payment of €2.6 bn payable over 15 annual instalments
• Commitment to back amount with adequate financial portfolio. Financial portfolio currently consists of
- Receivables against German government
- 15% stake in E.ON (income from financial portfolio recognised in ‘financial result’)
4.8
E.ON stake
Receivablesagainst GERgovernment
Financialportfolio
Miningprovisions
31 Dec 2020
2.6
May 2021 Investor Presentation Page 30
€ bn
Funding of coal phaseout liabilities
Appendix
Investor PresentationMay 2021
1 Gross cash (di-)investments: Sum of (di-)investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures.
Page 32Investor PresentationMay 2021
Core
Offshore Wind: Earnings down due to very high wind conditions last year and below normal wind speeds this year
Adj. EBITDA
t/o non-recurring items
Depreciation
Adj. EBIT
t/o non-recurring items
Gross cash investments1
297
-94
203
-
-724
431
-
-95
336
-
-159
-134
-
1
-133
-
-565
€ million Q1 2021 change
-
Key financials Q1 - Offshore Wind
Very high wind speeds in Q1 2020
Below normal wind speeds in Q1 2021
Q1 2021 vs. Q1 2020
Income from Triton Knoll commissioning phase
Consolidation effect from 20% increase of Rampion shareholding to 50.1%, closing as of 1 Apr 2021
Normalised weather conditions for the rest of the year assumed
Increased development expenses for mid- to long-term growth
Outlook 2021 vs. FY 2020
Q1 2020
Gross cash divestments1 +5 +13 -8
Outlook 2021€1,050 – 1,250m
Page 33Investor PresentationMay 2021
Core
Onshore Wind/Solar: Earnings far below previous year due to one-off from Texas’ unprecedented extreme cold snap
Adj. EBITDA
t/o non-recurring items
Depreciation
Adj. EBIT
t/o non-recurring items
Gross cash investments1
-119
-95
-214
-296
-257
221
-
-93
128
-
-233
-340
-296
-2
-342
-296
-24
€ million change
-296
Key financials Q1 - Onshore Wind/Solar
Very high wind speeds in Q1 2020
Below normal wind speeds in Q1 2021 in northern Europe
Increased capacity partly offset by Texas farm-down
Q1 2021 vs. Q1 2020
Increased capacity in Onshore Wind/Solar in the US and Europe
Book gain from 75% farm-down at Texas onshore portfolio
Outlook 2021 vs. FY 2020
Gross cash divestments1 +306 +17 +288
Outlook 2021€50 – 250m
1 Gross cash (di-)investments: Sum of (di-)investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures. | 2 Book gain for three out of four wind farms. Outstanding farm-down at Raymond West expected with closing in Q2. | Note: restated figures for 2020 due to change in the accounting for tax benefits as of 1 Jan 2021.
One-off from Texas’ extreme cold snap in Feb 2021
Increased development expenses for mid-to long-term growth
Q1 2021
Negative one-off from Texas cold snap of ~-€400 million
Book gain from 75% farm-down of wind farms in Texas portfolio2
Adj. EBITDA significantly impacted by non-recurring items:
Q1 2020
Page 34Investor PresentationMay 2021
Core
Hydro/Biomass/Gas: Sound earnings on the back of higher income from capacity payments
Adj. EBITDA
t/o non-recurring items
Depreciation
Adj. EBIT
t/o non-recurring items
Gross cash investments1
213
-72
141
-
-20
217
-
-82
135
-
-155
-4
-
10
6
-
135
€ million change
-
Key financials Q1 - Hydro/Biomass/Gas
Higher income from GB capacity payments
Absence of income from Georgia Biomass due to disposalin H1 2020
Q1 2021 vs. Q1 2020
Return to a normalised earnings level from the day-to-day optimisation of our power plant dispatch
Absence of income from Georgia Biomass due to disposalin H1 2020
Recovery from fire in Eemshaven
Outlook 2021 vs. FY 2020Outlook 2021€500 – 600m
1 Gross cash investments: Sum of investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures. | Note: including 37.9% stake in Kelag.
Q1 2021 Q1 2020
Page 35Investor PresentationMay 2021
Core
Supply & Trading: Very strong trading performance leads to earnings on a par with previous year’s high level
Adj. EBITDA
t/o non-recurring items
Depreciation
Adj. EBIT
t/o non-recurring items
Gross cash investments1
189
-11
178
-
-13
170
-
-10
160
-
-21
19
-
-1
18
-
8
€ million change
-
Key financials Q1 - Supply & Trading
Very strong trading performance partly offset by lower performance of Gas & LNG business
Q1 2021 vs. Q1 2020
Return to normalised earnings level after very high earnings contribution in 2020 due to very strong trading performance and strong contribution from gas & LNG
Outlook 2021 vs. FY 2020
• t
Outlook 2021€150 – 350m
Long-term average earnings of ~€250 million
1 Gross cash investments: Sum of investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures.
Q1 2021 Q1 2020
Page 36Investor PresentationMay 2021
Coal/Nuclear: Solid earnings on the strength of higher realised hedged generation margins
Q1 2021 vs. Q1 2020
Higher realised hedged generation margins
Costs associated with the German coal phaseout
Outlook 2021 vs. FY 2020
Key financials Q1 - Coal/Nuclear
1 Gross cash investments: Sum of investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures.
Outlook 2021€800 – 900m
Adj. EBITDA
t/o non-recurring items
Depreciation
Adj. EBIT
t/o non-recurring items
Gross cash investments1
328
-63
265
-
-41
282
-
-76
206
-
-39
46
-
13
59
-
-2
€ million Q1 2021 change
-
Q1 2020 Higher realised hedged generation margins
Costs associated with the German coal phaseout
Key sensitivities to our planning assumptions for FY2021
May 2021 Investor Presentation Page 37
Driver Segment Type Sensitivity Group impact1
Wind levels Offshore Wind P&L +/- 10% production +/- €160 million
CO2 prices RWE Group P&L +/- €1/t Hedged until 2030
Pension provisions RWE Group Germany B/S +/- 0.1%3 -€160/+€180 million4
Nuclear provisions RWE Group B/S +/- 0.1%3 -/+ €45 million
Mining provisions RWE Group B/S +/- 0.1%3 -/+ €140 million
RWE Group abroad B/S +/- 0.1%3 -€100/+€110 million4
1 All figures are rounded numbers. P&L figures refer to adjusted EBITDA. | 2 Earnings impact on merchant position before hedging. For 2021 we have already hedged a significant amount of our merchant production volumes. | 3 Change in real discount rate (net effect from change in nominal discount rate and escalation rate). | 4 Gross effect of changes in present value of defined benefit obligations. No offsetting effect from development of plan assets included. | Note: as of end of Dec 2020.
Onshore Wind/Solar P&L +/- 10% production +/- €100 million
Power prices Offshore Wind and Onshore Wind/Solar P&L +/- 10% +/- €70 million2
Main f/x (USD & GBP) RWE Group P&L +/- 10% +/- €130 million
Your contacts in Investor Relations
May 2021 Investor Presentation Page 38
Financial CalendarImportant Links
Contacts for Institutional Investors & Analysts
• Annual and interim reports & statements
• Investor and analyst conferences
• IR presentations & further factbooks
• IR videos
• Consensus of analysts’ estimates
ADR programme available
Further information on our homepage RWE shares/ADR
Contact for ADR-holders at BNY Mellonshrrelations@cpushareownerservices.com+1 201 680-6255 (outside from the US)1-888-269-2377 (within the US)
• 12 August 2021Interim report on the first half of 2021
• 11 November 2021Interim statement on the first three quarters of 2021
• 15 March 2022Annual Report for fiscal 2021
• 28 April 2022Annual General Meeting
• 12 May 2022Interim statement on the first quarter of 2022
• Thomas Denny ( Head of IR )Tel. +49 201 5179-5647thomas.denny@rwe.com
• Susanne LangeTel.: +49 201 5179-5630susanne.lange@rwe.com
• Dr. Burkhard PahnkeTel.: +49 201 5179-5625burkhard.pahnke@rwe.com
• Charline HeßlingTel. +49 201 5179-5619charline.hessling@rwe.com
• Lenka ZikmundovaTel. +49 201 5179-5623lenka.zikmundova@rwe.com
• Dr. Holger PerlwitzTel. +49 201 5179-5243holger.perlwitz@rwe.com
• Jérôme HördemannTel. +49 201 5179-5621jerome.hoerdemann@rwe.com
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