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    1RWE Facts & Figures | Updated September 2012

    FACTS & FIGURES

    September 2012

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    3RWE Facts & Figures | Updated September 2012

    91 Market dataElectricity

    > Generation

    > Fuels> Trading

    > Grid

    > Supply

    Gas

    > Trading

    > LNG

    > Storage> Downstream

    > Supply

    > Turkish market

    > Czech market

    92

    93

    113115

    118

    121

    133

    134

    136

    138

    140

    141

    145

    146

    151 RWEElectricity> Generation

    > Fuels

    > Trading

    > Grid

    > Supply

    Gas

    > Upstream

    > Storage

    > Trading

    > Downstream

    Investor Relations

    152

    153

    184

    187

    189

    190

    197

    198

    207

    209

    212

    219

    4 OrganisationRWE in a nutshell

    Board

    StructureGermany: Power Generation

    Germany: Sales/Distribution Networks

    Netherlands/Belgium

    United Kingdom

    Central Eastern and South Eastern Europe

    Renewables

    Upstream Gas & Oil

    Trading/Gas Midstream

    5

    7

    810

    12

    14

    17

    20

    22

    24

    26

    28 Strategy & financingStrategy

    RWE share

    Fixed income financing

    Risk management

    29

    47

    50

    58

    62 Political environmentOverview

    Combined Heat and Power (CHP) ActRenewable Energy Act

    Climate policy

    Emissions trading

    Large Combustion Plant Directive (LCPD)

    Grid

    63

    6465

    72

    75

    80

    82

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    4RWE Facts & Figures | Updated September 2012

    RWEMarket dataPolitical environmentStrategy & financingOrganisation

    RWE Facts & Figures | Updated September 2012 4

    5 RWE in a nutshell

    7 Board

    8 Structure

    10 Germany: Power Generation

    12 Germany: Sales/Distribution Networks14 Netherlands/Belgium

    17 United Kingdom

    20 Central Eastern and South Eastern Europe

    22 Renewables

    24 Upstream Gas & Oil

    26 Trading/Gas Midstream

    Organisation

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    5RWE Facts & Figures | Updated September 2012

    RWE markets

    RWE today:

    One of the leading integrated European utilitiesLeading positions in core markets

    We have leading positions in two of Europes largest markets as well as in fast growing SEE/CEE markets and

    own a large upstream position in both Europe and North Africa.1 Market positions of the RWE Group in terms of sales.

    GasElectricityMarket1

    Product

    Germany No. 1 No. 3

    UK No. 4 No. 4

    > No. 2 in

    Hungary> No. 3 in

    Slovakia

    > No. 5 inPoland

    > Presence inthe Czech

    Republic> Presence in

    Turkey

    > No. 1 in the

    CzechRepublic

    > No. 2 inSlovakia

    > Leadingposition inHungary

    CentralEastern andSouth EasternEurope

    Total Europe No. 3 No. 6

    Netherlands No. 2 No. 1

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERWE in a nutshell

    x/yRWE markets with establishedmarket positions

    Growth markets under observation(initial activities in some cases)

    Additional marketsespecially for renewables

    Additional marketsespecially for upstream gas & oil

    Forecast average growthof electricity/gasconsumptionin % p.a. (2011 2020)

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    6RWE Facts & Figures | Updated September 2012

    RWEs customers as of 31 December 2011

    1 Figure relates to drinking water and sewage water. Population served in Continental Europe.

    0 5 10 15 20

    Water

    Gas

    Electricity

    Million

    17

    8

    151

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERWE in a nutshell

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    RWE Facts & Figures | Updated September 2012 7

    The Executive Board of RWE AG

    Dr. Rolf PohligChief Financial Officer(appointed until 31 December 2012)

    Alwin FittingChief Human Resource Officer(appointed until 31 March 2013)

    Dr. Rolf Martin SchmitzDeputy Chairman of the Executive BoardChief Operating Officer(appointed until 30 April 2014)

    Dr. Leonhard BirnbaumChief Commercial Officer(appointed until 30 September 2013)

    Dr. Bernhard GntherMember of the Executive Board(appointed until 30 June 2017)

    Peter TeriumChief Executive Officer of theExecutive Board(appointed until 31 August 2016)

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEBoard

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    RWE Facts & Figures | Updated September 2012 8

    The RWE Group

    NET4GASGas transmission system operator in the Czech Republic(unbundled)

    Internal servicesRWE ConsultingRWE IT

    RWE ServiceRWE Technology

    Germany

    RWEDeutschland

    Essent RWE npower RWE East RWE Innogy RWE Dea RWE Supply &Trading

    RWE Power

    CentralEastern andSouth EasternEurope

    UnitedKingdom

    Netherlands/Belgium

    Trading/GasMidstream

    UpstreamGas & Oil

    Renewables

    PowerGeneration

    Sales/DistributionNetworks

    RWE AG (Group Centre)

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEStructure

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    RWE Facts & Figures | Updated September 2012 9

    RWE Group structure: a mirror of the value chain

    > Integrated business model: strong presence in all parts of the energy value chain

    > Stability and growth: well balanced portfolio of leading market positions in mature andgrowing markets in Europe

    Raw material production Power generation

    RWE DeaRWE Dea RWE PowerRWE Power

    EssentEssent

    RWE EastRWE East

    ConventionalConventional

    RenewablesRenewables

    RWE Supply& TradingRWE Supply& Trading

    RWE npowerRWE npower

    EssentEssent

    RWE EastRWE East

    RWE DeutschlandRWE Deutschland

    NET4GAS1NET4GAS1

    1 Gas transmission system operator in the Czech Republic (unbundled).

    RWE npowerRWE npower

    Gas and oilGas and oil

    LigniteLignite

    RWE InnogyRWE Innogy

    EssentEssent

    RWE PowerRWE Power

    RWE npowerRWE npower

    RWE PowerRWE Power

    RWE EastRWE East

    RWE InnogyRWE Innogy

    Wood pelletsWood pellets

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEStructure

    Energy trading/gas midstream

    Electricity andgas networks

    Electricityand gas sales

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    10RWE Facts & Figures | Updated September 2012

    Who we are

    Germany: Power Generation (I)

    > RWE Power, with two registered offices in Essen and Cologne, isGermanys biggest electricity producer.

    > The company banks on a broad energy mix and to a large extent is ableto draw on its own raw material base (e.g. lignite).

    > Our power plants have an installed capacity of more than 31 GW.

    > Enhancing flexibility in the power plant fleet and in the opencast mines isone of the main challenges. Increasing electricity price volatility requiresthe development of market-oriented power plant dispatch and an increase

    in the flexibility parameters of the power stations.> With a 43 percent efficiency rate, our twin-unit plant BoA 2&3 was

    commissioned in August 2012. It is the worlds most advanced lignite-firedpower station.

    Key figures 2011 2010

    EBITDA ( million) 3,252 4,510

    Operating result ( million) 2,700 4,000

    Workforce1 15,371 15,409

    1 Converted to full-time positions.

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEGermany

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    11RWE Facts & Figures | Updated September 2012

    Power plant new build project

    Generation capacity1 as of 31 Dec 2011 (MW) Power generation1 2011 (billion kWh)

    Hard coal 9,555

    Gas 5,228

    Pumped storage, oil, other 2,489

    Renewables 313

    Nuclear 3,901

    Lignite 9,799

    31,285

    Hard coal 34.0

    Gas 11.8

    Pumped storage, oil, other 2.2

    Renewables 1.4

    Nuclear 34.3

    Lignite 68.3

    152.0

    Westfalen D+E, Hamm

    > Fuel: hard coal> Capacity: 1,528 MW> Efficiency: 46%> Start of operation:

    End of 2013

    1 Including minor capacities of the Sales/Distribution Networks business area.

    Two new hard coal-fired units will replace two 160-megawatt units

    commissioned in 1962/63 and expand the capacity of the site. Owing tothe high efficiency of about 46%, the specific carbon emissions of the twonew units will be about 20% lower than the current average of hard coal-fired power plants in Germany.

    Major power plants in Germany

    Hard coalPower plant

    NuclearNuclear powerplant

    OtherHydro powerRefuseincineration

    Natural gasPower plantThermal power plant

    Gas and steamWaste gasrecycling

    LigniteOpencast pitPower plantFactory

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEGermany

    Germany: Power Generation (II)

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    12RWE Facts & Figures | Updated September 2012

    Who we are

    > The RWE Groups German distribution network, sales and energyefficiency operations are pooled in RWE Deutschland AG since January

    2011.> It is the RWE Groups largest affiliate, encompassing the German regional

    companies enviaM, KEVAG, LEW, Swag and VSE.

    > Furthermore, the company holds direct stakes in some 70 regional andmunicipal utilities.

    > Significant importance is accorded to partnerships with municipalities. Via

    its subsidiaries, RWE Deutschland ensures the reliable and efficientoperation of electricity, gas and water distribution networks in more than3,500 cities and communities and in several regions is responsible forstreet lighting.

    Key figures 2011 2010External revenue ( million) 20,354 18,456

    EBITDA ( million) 2,167 2,218

    Operating result ( million) 1,505 1,575

    Workforce1

    20,398 18,775

    Germany: Sales/Distribution Networks (I)

    1 Converted to full-time positions.

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEGermany

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    13RWE Facts & Figures | Updated September 2012

    Gas customers1 (thousand) External gas sales 2011 (billion kWh)

    Electricity customers1 (thousand) External electricity sales 2011 (billion kWh)

    Industrial andcorporate customers 31.4

    Residential andcommercial customers 25.5

    Distributors 60.4

    117.3

    2009 2010 2011

    6,823 6,674 6,959

    2009 2010 2011

    1,064 1,0911,295

    Industrial andcorporate customers 24.0

    Residential and

    commercial customers 27.5

    Distributors 31.8

    83.3

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEGermany

    1 Households and small commercial enterprises.

    1 Households and small commercial enterprises.

    Germany: Sales/Distribution Networks (II)

    2,000

    4,000

    6,000

    8,000

    0

    1,000

    1,500

    500

    0

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    14RWE Facts & Figures | Updated September 2012

    Who we are

    > Essent is the largest energy company in the Netherlands. The companyhas a well-balanced and flexible generation portfolio (consisting primarily

    of gas and hard coal power stations). In total, Essent had 3.1 GW ingeneration capacity at the end of 2011 and produced some 11.5 billionkWh of electricity in 2011.

    > By investing into processes to co-fire biomass at our Amer andEemshaven power stations we intend to further increase the proportionof renewables in our energy mix.

    > In 2011, 2.2 million and 1.9 million households and small commercialenterprises were supplied with electricity and gas in the Netherlands,respectively.

    > Two new gas power stations went online at the beginning of 2012.A state-of-the-art hard coal-fired power plant is currently being built.

    Key figures 2011 2010External revenue ( million) 5,818 6,510

    EBITDA ( million) 462 660

    Operating result ( million) 245 391

    Workforce1

    3,794 3,899

    Netherlands/Belgium (I)

    1 Converted to full-time positions.

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWENetherlands/Belgium

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    15RWE Facts & Figures | Updated September 2012

    Power generation 2011 (billion kWh)

    Generation capacity as of 31 Dec 2011 (MW)

    Hard coal 916

    Renewables(Biomass co-firing) 331

    Gas 1,897

    3,144

    Hard coal 5.1

    Renewables 1.3

    Gas 5.1

    11.5

    Essents major power plants (2012)

    Bio-energiecentrale CuijkBiomass, 25 MW

    Claus C, MaasbrachtGas, 1,304 MW

    Claus A, MaasbrachtGas, 610 MWSwentibold, Geleen

    Gas, 245 MW

    Amercentrale, GeertruidenbergCoal, gas, biomass, 1,226 MW

    Moerdijk II, MoerdijkGas, 426 MW

    Moerdijk I, MoerdijkGas, 339 MW

    + various midsize cogeneration power plants

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWENetherlands/Belgium

    Netherlands/Belgium (II)

    Energiecentrale EemshavenCoal/Biomass, 1,560 MW(under construction)

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    16RWE Facts & Figures | Updated September 2012

    Electricity and gas customers1 (thousand)

    External electricity sales 2011 (billion kWh) External gas sales 2011 (billion kWh)

    2,019

    2,339

    2,016

    2,329

    2,024

    2,346

    0

    1000

    2000

    3000

    Electricity Gas

    2009

    2010

    2011

    Industrial andcorporate customers 50.8

    Residential andcommercial customers 36.9

    87.7

    Industrial andcorporate customers 10.3

    Residential andcommercial customers 10.7

    21.0

    Power plant new build project

    > Fuel: hard coal/biomass> Capacity: 2x780 MW> Efficiency: ~46%> Start of operation: 2014

    The 50 hectare site in Eemshaven which can be partially fuelled by

    biomass is being built to generate electricity primarily for the Dutchmarket. With an efficiency of more than 46% it will be one of theworlds most modern hard coal-fired power stations.

    Eemshaven

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWENetherlands/Belgium

    1 Households and small commercial enterprises.

    Netherlands/Belgium (III)

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    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWE

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    Electricity and gas customers (households and small commercial enterprises, thousand)

    External electricity sales 2011 (billion kWh) External gas sales 2011 (billion kWh)

    Industrial andcorporate customers 2.2

    Residential and

    commercial customers 38.0

    40.2

    Industrial and

    corporate customers 32.9

    Residential andcommercial customers 17.4

    50.3

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWE

    Electricity Gas Total

    2010

    2011

    United Kingdom

    3,877 3,935

    2,561 2,636

    6,438 6,571

    United Kingdom (III)

    2,000

    4,000

    6,000

    8,000

    0

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWE

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    20RWE Facts & Figures | Updated September 2012

    Who we are

    > RWE East, based in Prague, is a subsidiary wholly owned by RWE AG.It began overseeing RWEs affiliates in Central Eastern and South

    Eastern Europe as well as Turkey as of 1 January 2011.> These affiliates include RWE Transgas in the Czech Republic,

    RWE Hungria in Hungary, RWE Polska in Poland, VSE in Slovakiaand RWE Holding in Turkey. RWE East also heads up projects,e.g. in Croatia and Romania.

    > In 2011, the company sold just under 24 billion kWh of electricity as well

    as 59 billion kWh of gas.

    Key figures 2011 2010External revenue ( million) 4,990 5,297

    EBITDA ( million) 1,364 1,440

    Operating result ( million) 1,109 1,173

    Workforce1

    11,328 11,163

    Central Eastern and South Eastern Europe (I)

    1 Converted to full-time positions.

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWECEE and SEE

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWE

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    21RWE Facts & Figures | Updated September 2012

    External gas sales 2011 (billion kWh)

    External electricity sales 2011 (billion kWh)

    RWE TurkeyElectricity:

    presence

    RWE Polska:

    Electricity: No. 5VSE

    Electricity: No. 3Gas: No. 2

    RWE TransgasElectricity: presenceGas: No. 1

    RWE HungriaElectricity: No. 2

    Gas: leading position

    RWE East core markets

    Growth markets under observation

    Other RWE Group core markets

    Markets and market positions in terms of sales

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWECEE and SEE

    Central Eastern and South Eastern Europe (II)

    Industrial andcorporate customers 9.2

    Residential andcommercial customers 8.7

    Industrial andcorporate customers 27.4

    Residential andcommercial customers 27.0

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWE

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    Who we are

    > RWE Innogy was established in February 2008; it pools the RWE Groupsrenewables expertise and power stations, focussing regionally on Europe.

    > Onshore and offshore wind power projects are a focus of the company'sactivities. RWE Innogy will also expand its biomass and hydroelectricactivities. We also support the development of new technologies for thefuture.

    > RWE Innogy was launched with 1,100 MW in 2008. At present, we alreadyoperate a power plant capacity of around 2.4 GW.

    > We are especially strong in our home market in Germany, followed by theUnited Kingdom, Spain, the Netherlands, Poland and Italy.

    Key figures 2011 2010External revenue ( million) 443 366

    EBITDA ( million) 338 211

    Operating result ( million) 181 72

    Workforce1

    1,493 1,232

    Renewables (I)

    1 Converted to full-time positions.

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERenewables

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWE

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    Generation capacity as of March 2012 (MW)RWE Innogys asset base by region (MW)

    Offshore wind projects

    SpainPortugal

    France Switzerland

    CzechRepublic

    BE

    Poland

    Italy

    DE

    New technologies

    Hydro

    Onshore wind Biomass

    Offshore wind

    UK

    NL

    Onshore wind 1,607

    Biomass 110

    2,4111

    Hydro 542

    Offshore wind 150

    In operation Under construction

    North Hoyle1, UK, 60 MW:

    Completely commissioned 2004

    Thornton Bank I2, BE, 30 MW:Completely commissioned 2009

    Rhyl Flats, UK, 90 MW:Completely commissioned 2009

    Thornton Bank II+III2, BE,295 MW

    Gwynt y Mr3, UK, 576 MW

    Nordsee Ost, GER, 295 MW

    Greater Gabbard4, UK,504 MW

    1 RWE Innogy (33%), owned by Zephyr Investments Ltd.2 RWE Innogy (27%), owned by C-Power consortium.3 RWE Innogy (60%), Stadtwerke Munich (30%) and Siemens (10%).4 RWE Innogy (50%), Scottish and Southern Energy (50%).

    1 Including minor capacities in solar and biogas.

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERenewables

    Renewables (II)

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWE

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    Who we are

    > Headquartered in Hamburg, RWE Dea is active in the internationalexploration and production of gas and oil, benefiting from its extensive

    experience over a corporate history spanning more than 100 years.> RWE Dea has production facilities in Germany, the United Kingdom,

    Norway, Denmark and Egypt and holds licenses in Algeria, Ireland, Libya,Mauritania, Poland, Turkmenistan and Trinidad and Tobago. In Germany,RWE Dea also operates large-scale underground storage facilities fornatural gas.

    > RWE Dea produced 2,664 million cubic metres of gas and 2,478 thousandcubic metres of oil during fiscal 2011, resulting in a total output of31.8 million barrels of oil equivalent.

    > In 2014, a production level of 40 million barrel of oil equivalent and anoperating result of about 800 million after planned disposals is expected.

    Key figures 2011 2010External revenue ( million) 1,766 1,353

    EBITDA ( million) 923 619

    Operating result ( million) 558 305

    Workforce1

    1,362 1,363

    Upstream Gas & Oil (I)

    1 Converted to full-time positions.

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEUpstream Gas & Oil

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWE

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    Development of reserves and resources (million m3 OE)

    Gas production 2011 (million m3 OE) Oil production 2011 (million m3)

    Germany 1.8

    Norway 0.3

    2.6United Kingdom 0.5

    Germany 0.9

    Denmark 0.2

    2.5

    Egypt 0.5

    Norway 0.9

    102111 137 133

    104

    3126

    48

    91

    40

    5651

    0

    50

    100

    150

    200

    250

    2 0 1 0 2 0 1 0 G e s a mt 2 0 1 1 2 0 1 1 G e s a mt

    Gas Oil Total

    66

    158

    79

    237

    162

    228

    2011

    Reserves

    Provenresources

    2010

    Capital expenditure ( million)

    POLITICAL ENVIRONMENT RWEUpstream Gas & Oil

    Upstream Gas & Oil (II)

    477 505606

    855

    507

    701

    2006 2007 2008 2009 2010 2011

    1,000

    800600

    400

    200

    0

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWE

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    26RWE Facts & Figures | Updated September 2012

    Who we are

    > RWE Supply & Trading is a leading European energy trading company,acting as the Groups hub for all tradable commodities (such as power,

    gas, coal, oil, and emission certificates). The division thus functions as aninterface between the RWE Group and the global wholesale markets forenergy and energy-related raw materials.

    > The headquarters in Essen boast Europes largest and most sophisticatedenergy trading floor. Additional trading floors or subsidiary and affiliateoffices are located in London, Swindon, Den Bosch, Geneva, Singaporeand New York.

    > With an annual gas procurement of approx. 45 billion cubic metresRWE Supply & Trading is one of the strongest competitors in theEuropean gas industry.

    Key figures 2011 2010External revenue ( million) 5,750 7,517

    EBITDA ( million) -784 -7

    Operating result ( million) -800 -21

    Workforce1

    1,562 1,512

    Trading/Gas Midstream (I)

    1 Converted to full-time positions.

    Trading/Gas Midstream

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWE

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    27RWE Facts & Figures | Updated September 2012

    Energy sales to industrial customers 2011 (billion kWh)

    21%

    7%

    4%

    22%

    47%

    15.923.2

    GasElectricityAluminium, steel & mining

    Fine chemicals &pharmaceuticals

    Glass, paper & cement

    Primary industry/petrochemistry

    Transport, automotive & other

    Trading floors and subsidiary/affiliate offices

    25%

    8%

    12%

    32%

    23%

    Trading volumes 2011

    > 1,435 billion kWh of power

    > 753 billion cubic meters of gas

    > 618 million barrels of oil

    > 644 million CO2 certificates

    Trading/Gas Midstream

    Trading/Gas Midstream (II)

    Organisation RWEMarket dataPolitical environment

    Strategy & financing

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    28RWE Facts & Figures | Updated September 2012

    Organisation RWEMarket dataPolitical environmentStrategy & financing

    28

    29 Strategy

    47 RWE share

    50 Fixed income financing

    58 Risk management

    Strategy & financing

    RWE Facts & Figures | Updated September 2012

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWES

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    RWE Facts & Figures | Updated September 2012 29

    RWEs journey over the next five years

    > Cornerstones of strategy remain

    > Adjust execution of strategy to changing

    framework conditions No further nuclearambitions with

    existing operations phasing out

    Continued expansion of renewables

    including position in photovoltaic> Increasing partnerships to reduce risks and

    leverage capital base

    > Disciplined investment approach: operating

    cash flow to cover dividends and capex by2014/15 at the latest

    Strategy

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWESt t

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    30RWE Facts & Figures | Updated September 2012

    More international, while maintaining a regionally

    focused strategyCore markets in Northwest andCentral Europe

    Regional growth markets mainlyCEE/SEE, especially Turkey

    Renewables business in and around ourtraditional core markets

    Upstream gas & oil position/projectsmainly in Europe, Caspian region, Africaand Trinidad & Tobago

    Additional markets for upstream gas & oil

    Additional markets especially for renewables business

    RWE markets with established market positionsGrowth markets under observation/first activities

    Strategy

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWESt t

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    RWE Facts & Figures | Updated September 2012 31

    More sustainable:

    Three levers to execute our strategyLower CO2 emissions More renewables Efficient use of energy

    > Reduce specific CO2

    emissions by more than20% by 2020 comparedto 2005

    > Increase renewable

    generation capacity toat least 20% by 2020

    > Increase efficiency of

    fossil fuelled powerplants

    > Offer efficiencyenhancing energyproducts to endcostumers

    20%

    40%35%

    5%~

    ~

    ~

    ~

    ~46 GW

    Estimatedgeneration

    portfolio 2020

    Nuclear

    Coal (partlyhighly efficient)

    Gas/other

    Renewables

    Strategy

    0,50

    0,55

    0,60

    0,65

    0,70

    0,75

    0,80

    0,850,90

    2005 2008 2011 2014 2017 2020

    Specific CO2 emissionsexposure

    Actual

    Target path

    t/MWh

    0.900.85

    0.80

    0.75

    0.70

    0.65

    0.60

    0.55

    0.50

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    More robust, with a well balanced portfolio approach

    Active along the whole value chain

    Balanced generation portfolio across alltechnologies

    Invest in most economic renewabletechnologies

    Exposure via RWE Dea to globalunregulated commodity prices

    5.8bnGermany

    ~2/3International

    ~1/3

    5.8bn Regulated~30%Unregulated~70%

    Operating result 2011

    Continuous contribution from stableregulated business

    Broad geographic diversification in

    known territory to minimise regulatoryand political risks

    Strategy

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    Key priorities 2012/2013

    > 2012 programme ontrack to be completed

    > Measures of newprogramme fully

    identified> RWE 2015 is laying

    the foundation forfurther efficienciespost 2014

    > Completion ofgas price reviewsenvisaged for 2013at the latest

    > Structural solutionsto eliminate gas-to-oilspread

    > Renegotiationscontinue for remaining

    contracts with acombined volumeof11 bcm

    > Divestments of up to 7 billion by the endof 2013

    > Majority of sales

    processes underway> Disposal of 19% in

    VSE (GER) closed

    >Agreement for sale ofBerliner Wasserbe-triebe signed

    Disposalprogramme

    Gas supplycontracts

    Efficiencyenhancement

    Strategy

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    RWE 2015 four action fields to align RWE with

    changing market environment> Identify opportunities of energy market transformation

    >Align execution of strategy to changing marketenvironment

    > Eliminate structural and operational duplications and clarifyinterfaces

    > Establish European generation company

    > Drive efficiency enhancements and operational excellence

    > Realise efficiencies of 1 bn by 2014 compared to 2012

    >Align management and employees across all parts of RWE

    > Foster high performance culture

    Strategy

    Structures/Roles

    Functionalexcellence

    Culturalchange

    Strategy

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    Streamlined and disciplined investment programme

    > Peak of investment programmein 2010/2011

    > Finalising conventional powergeneration programme mainly

    in 2012 and 2013> More than 60% of our capex will be

    spent in our international businesses

    > Sustainable long-term capex level ofup to 5 bn p.a. of which day-to-daycapex up to 2.5 bn p.a.

    > Approx. 16 bn capex programmefor 2012 2014 of which c. 8 bnfor growth/efficiency enhancement,thereof c. 6 bn in our growth areasRenewables, CEE/SEE andUpstream Gas & Oil

    > Committed capex(including day-to-day, approx.):

    2012 2013 201495% 85% 65%

    billion

    2009 2010 2011 2012e 2013e 2014e

    5.96.4

    ~4 5 p.a.1~ 66.4

    ~1.9 Replacement, of which~20% efficiency enhancement

    ~6.5 Day-to-day

    ~7.6 Growth

    ~16Renewables,Upstream, CEE/SEE (~6.0)

    1 After planned divestments.

    Strategy

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    6 billion earmarked for growth areas until 2014

    > Target capacity of 4.5 GW(in operation or under construction) by 2014

    > Growth opportunities mainly in generation

    > Regional focus on Turkey and Poland

    > 2014 targets post planneddisposals:

    Gas and oil productionof ~ 40 mm boe

    Operating result of ~ 800m

    > Development focus on UK,Norwegian and North Africangas fields

    > Longer term growth secured throughcontinued successful exploration effort

    Upstream Gas & Oil2

    Renewables (RWE Innogy)2CEE/SEE2

    ~ 30% ~ 6 bn1

    1 Growth and replacement capex, excluding day-to-day capex.2 Divisional split; regional overlap due to potential upstream and renewable investments in Central Eastern/South Eastern Europe.

    > Operating resultof 500 million by 2014

    > Balanced generation portfolioacross countries andtechnologies:

    Regional diversification

    across core markets Focus on most cost

    competitive technologiesto minimise regulatory risk

    > Large project pipeline of c. 14 GW

    > 1.1 GW currently under construction

    ~ 10%

    ~ 60%

    Strategy

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    By 2014 we will have renewed more than 25% of our

    electricity generation fleet

    Strategy

    H1 20122010 H2 2012 Q1 2013 2014

    BoA Neurath2.1 GW lignite

    Moerdijk 20.4 GW CCGT

    Claus C1.3 GW CCGT

    Staythorpe1.7 GW CCGT

    Lingen0.9 GW CCGT

    Denizli0.8 GW CCGT

    Pembroke2.2 GW CCGT

    Hamm1.5 GW Hard coal

    Eemshaven1.6 GW Hard coal

    2013/2014

    Gas

    Lignite

    Hard coal

    12.5 GW

    out of (2011)

    49.2 GW

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    RWE Innogy major project portfolio

    bn1 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

    Gwynt y Mr(Wind offshore, 576 MW, 60%)

    2.4

    Greater Gabbard(Wind offshore, 504 MW, 50%) 1.9

    Markinch (Biomass CHP,45 MWel, 88 MWth, 100%)

    0.3

    Nordsee Ost2

    (Wind offshore, 295 MW, 100%)0.9

    Capacity and earnings targets for RWE Innogy until 2014 are mainly driven by 4 major projects

    Large scale projects, especially in offshore wind, play a vital role in achieving European renewable targets as

    growth potential in other areas is limited

    Utilities like RWE have a competitive advantage in these large-scale projects

    1 Capex at 100% share; UK offshore includes investment for grid connection.2 The construction schedule had to be revised in 2012 due to the delay in the offshore grid connection. In light of latest statements by

    grid operator TenneT there is a risk of even further delays.

    gy

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    Gas/other1

    Nuclear

    20%

    40%35%

    5%

    Renewables

    Coal (partly highly efficient)

    ~

    ~~

    ~

    ~ 46 GW

    1 Including approx. 8% of others, mainly pumped storage.

    In 2020 approx. 20% of RWEs generation capacity

    will be in renewables

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    External revenue Operating resultEBITDA

    Stable portfolio: 30% of operating result derived from

    regulated businesses (2011)

    Unregulated

    business 80%

    Regulatedbusiness 20%

    Regulated business particularly includes:

    > German electricity and gas networks

    > Electricity supply in Hungary

    > Eastern European electricity and gas networks and storage

    > Continental European water business

    > Renewables

    Unregulated

    business ~70%

    Regulatedbusiness ~30%

    Unregulated

    business ~70%

    Regulatedbusiness ~30%

    51,686million

    5,814million

    8,460million

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    Strict investment discipline provides platform for

    sustainable dividendsMid-term target to cover investments and dividends by cash flows from operating activities

    billion

    2010 2011 2014/2015e

    8.8

    5.5

    9.4

    5.5

    > Capex level will normalisebeyond 2013

    > Pay-out ratio of

    50% - 60% of recurrent netincome

    > Flexibility to adjustinvestments to meet cashflow, if necessary

    Dividends (incl. minority payments; year of payment)

    Capex in property, plant & equipment and financial assets

    Cash flows from operating activities

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    Further efficiency enhancements of 1 bn initiated

    2013 2014 Total

    750

    250

    1,000

    In million 1 bn programme nowbacked bottom-up byoperational measures

    Several hundred individualmeasures across the wholeRWE group

    Programme includesc. 300 m from workforcereduction in 2013/14

    Fully accretive to operatingresult (i.e. post cost inflationand one-off cost of

    programme)

    ~250Reduced IT-spending

    ~300Staff reduction

    ~450Other cost reductions

    and efficiency improvements

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    Outlook for 2012 / 2013

    million

    Dividend 2.00/share Pay out ratio of 50% 60% of recurrent net income

    8,460

    5,814

    2,479

    EBITDA

    Operatingresult

    Recurrentnet income

    2011 2012eafter further disposals1

    2013e

    1 Expected earnings dilution from the remaining up to 7 bn divestment programme:

    in bn EBITDA Operating result Recurrent net income

    2012 no major dilution effect expectedFull year effect (after 2013) ~0.5 ~0.4 ~0.3

    The 2013 outlook is based on commodity prices as of January 2012.

    in the order of 2011

    in the order of 2011

    in the order of 2011

    after further disposals1

    in the order of 2011

    in the order of 2011

    ~9,000

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    Major M&A transactions since FY 2008

    70%2009Breagh gas field and surrounding exploration licenses, UK

    100%2011Energy Resources Holding B.V. (ERH, 30% in EPZ)

    Acquisitions Year of acquisitionPercentage of

    participation

    Urvasco Energa S.A., Spain 2008 100%

    Fri-El S.p.A., Italy 2008 50%

    Powerhouse Holding B.V., Netherlands 2008 100%

    Greater Gabbard Offshore Windparks Ltd., UK 2008 50%Excelerate Energy, USA 2008 50%

    Luxempart Energie S.A. (holds stake in SOTEG S.A.), Luxembourg 2009 49 to 100%

    Favorit GmbH, Germany 2009 100%

    Essent N.V., Netherlands 2009 100%

    from 100 to 0%2011Thyssengas, Germany

    from 100 to 25,1%2011Amprion, Germany

    Divestments Year of divestment Percentage stake

    Rhenag, Germany 2008 8.23%

    Tarragona Power, Spain 2008 50%

    American Water, USA 20082009

    from 100 to 60.5%from 60.5 to 0%

    swb, Germany1 2009 51% less one share

    1 Divestment by Essent in order to obtain approval for acquisition of Essent N.V. by RWE.

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    In 2011, RWE spent 2,875 million onenvironmental protection

    1 Including capital expenditure.

    2 E.g. operation of flue gasdesulphurisation units.

    3 Mainly purification of wastewater.

    Climate protection 1,845 64

    Clean air2 407 14

    Waste disposal 208 7

    Water protection3 298 10

    Nature and landscapeprotection 93 3

    Noise abatement 20 1

    Brownfield sites,soil contamination 4 0

    (2010: 2,863 million)

    Rounding differences may occur.

    Total: 2,875million1

    million %

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERWE Share

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    RWE AG shareholder structureas of December 2011

    > 260,000 shareholders own 614.7 million shares

    > Free float: 85%(excluding RW Energie-Beteiligungsgesellschaft)

    15%RW Energie-Beteiligungsgesellschaft

    BlackRock 5%

    Mondrian Investment 3%

    Other institutional shareholders 63%

    Shares of subscribed capital

    Private shareholders 13%

    Employee shareholders 1%

    > 86% of all RWE shares are held by institutional

    investors> The regional breakdown is as follows:

    Germany 34%USA/Canada 12%UK/Ireland 19%Continental Europe (excl. Germany) 19%

    Rest of the world 2%

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERWE Share

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    RWE share profileas of August 2012

    703714703712German Security Identification No.

    RWE3 GY (Xetra)RWE GY (Xetra)Bloomberg

    RWE3 GR (Frankfurt/Main)RWE GR (Frankfurt/Main)

    Share information Non-par-value sharesCommon shares Preference shares

    Total number of shares

    Total number of shares outstanding

    Total number of treasury shares

    575.7 million common shares

    575.4 million common shares

    0.3 million common shares

    39.0 million preference shares

    39.0 million preference shares

    Reuters RWEG.DE (Xetra)

    RWEG.F (Frankfurt/Main)

    RWEG_p.DE (Xetra)

    RWEG_p.F (Frankfurt/Main)

    ISIN DE 000703 7129 DE 000703 7145

    US CUSIP No. (ADR) 74975E303

    Listings Germany official

    Frankfurt/Main

    Dsseldorf

    Xetra

    Abroad

    New York, OTC trading(Sponsored level-one ADR programmefor common shares)

    Germany official

    Frankfurt/Main

    Dsseldorf

    Xetra

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    Dividend per share

    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

    Dividend yield based on year-end price of RWE common shares

    RWE's dividend history

    Bonus0.10

    4.2%

    3.50

    1 Truncated fiscal year of RWE AG from 1 July to 31 December 2001.

    1

    3.2%

    4.5%4.0% 3.7%

    2.8%

    1.00 1.00 1.251.50 1.75

    3.3%

    3.15

    4.50

    2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

    7.1%

    5.2%

    3.50 3.50

    7.0%

    %

    2.00

    7.4%

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    RWE AG Group Finance

    Asset Management Committee (AMC)

    > Defines investment strategy

    > Sets guidelines for the implementation

    > Members: CFOs of RWE AG, RWE Power, RWE npower, RWE Dea,enviaM, Lechwerke, Swag, Head of Finance of RWE AG

    As of 30 June 2012.

    Investmentguidelines

    Master KAGs: RWE AG Group> Spezialfonds: 6

    > Subfunds: 36

    > RWE AG subsidiaries: 2.2 bn

    > RWE Pensionstreuhand e.V. (PTV): 3.1 bn

    >

    RWE Pensionsfonds AG (PF): 6.6 bn

    > UK Pension Trust - RWE npower: 4.1 bn

    Asset

    managementcontract

    Recommendations &reporting

    Investment strategy,guidelines & restrictions

    > Centralised asset management by RWE AG

    Internal management External management

    Master KAGs: PTV + PF

    >

    Spezialfonds: 4> Subfunds: 66

    Management of financial assets: centralised structure

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    RWE's corporate treasury basis for groupwidefinancial risk management

    RWE AG: Corporate Treasury

    Liquidity transfer via cashpool Hedging (fx, interest rates) Intercompany loans

    RWE subsidiaries

    > RWE AG acts solely as external counterparty for financial transactions (excluding regulatory requirements)

    > Corporate Group Treasury has the overall responsibility for treasury operations

    > Central database for group-wide financial risk management

    External market

    Capital marketRatings

    FX deals (incl. derivatives)Interest deals (incl. derivatives )

    CP programmeMoney market

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    Capital market debt maturities and sources of financingas of 30 June 2012

    Capital market debt maturities1

    in bn

    Strong sources of financing

    Maturities of debt issued Hybrid (first call date)Accumulated outstanding debt (incl. hybrid)

    0.0

    0.5

    1.0

    1.5

    2.0

    2.5

    2012

    2016

    2020

    2024

    2028

    2032

    2036

    2040

    0

    4

    8

    12

    16

    20

    1 RWE AG and RWE Finance B.V., as of 30 June 2012

    Balanced profile with limited maturitiesup to end of 2014 (~4.3 billion)

    Fully committedsyndicated loan

    (4.0bn up to Nov. 2015)

    Commercial paper(up to 1 year)

    $1.4bn ($5.0bn)

    0.0bn

    1.1bn (30 June 2012)

    for liquidityback-up

    MTN programme(up to 30 years)

    30bn

    15.9bn (30 June 2012)2

    2 Bonds outstanding under the MTN-programme,i.e. excluding hybrids. Including hybrids: 19.7bn(incl. USD and CHF hybrid, issued 21 and 28 of June)

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEFixed income financing

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    1 Includes interest and cross-currency swaps.

    Capital market debt currency and interest exposureas of 30 June 2012

    Bonds ( 15.9 bn) and hybrids ( 3.8 bn)Bonds, hybrids and other interest rate relatedpositions (e.g. commercial paper and cash)

    Interest rate fixing expiry > 1 year

    Interest rate fixing expiry < 1 year

    18%

    82%

    20.5 bn1

    33%

    67%

    19.7 bn1

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEFixed income financing

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    Standard & Poor's(BBB+, stable outlook)

    > On 27 July 2012, S&P downgraded the rating forRWE from A-, negative outlook, to BBB+, stable

    outlook.> The downgrade reflects S&Ps view of a sustained

    deterioration of RWE's business risk profile, as wellas the Groups weakened cash generation capacityand credit protection ratios in the medium term.

    Additionally, S&P says that RWE has not made

    significant headway in executing the announced7 bn disposal programme.

    > S&P positively recognizes the capital measurestaken and believes that these measurers will helpstabilize the Groups financial risk profile at thecurrent level.

    >

    RWEs business risk profile is currently seen asstrong.

    > The stable outlook reflects S&Ps assumption thatRWE will be able to maintain cash flow credit metricscommensurate with the ratings over the mediumterm.

    Moody's(A3, negative Outlook)

    Credit rating 2012 RWE AG

    > On 6 July 2012, Moodys confirmed the rating forRWE with A3 negative outlook.

    > In Moodys view, positive aspects like strongbusiness positions across the energy value chainand the track record of financial discipline andtransparency with RWEs leverage tolerance are toan extent offset by a difficult operating environmentwith negative pressure on cash flows and profitability

    over 2012-13 from lower achieved power prices, thenegative gas/oil spread, the nuclear fuel tax and thephase-out of nuclear power generation in Germany.

    > The negative outlook reflects both the execution riskaround its disposal programme as well as thechallenges it faces in dealing with pressures onearnings, both of which increase the uncertaintyaround RWE's ability to maintain its financial strengthat levels consistent with its rating.

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    > RWE Group companies have to hedge any FX risk with RWE AG> RWE AG measures the net position for each currency and hedges itself with external counterparties (banks)

    > Measurement and limitation of FX risks is mainly based on an FX value at risk concept [VaR (95/1d)1 < 1m]

    RWE has two different risk categories:

    > Bonds which are held as fixedincome assets:

    Rising interest rates may leadto lower bond prices

    Average Value at Risk (95/1d)1 in 2011: 7m

    > Measurement of exposure (caused by cash, term deposits, FX/IR derivatives etc.) for each bank

    > RWE allocates for each bank a limit which is usually derived from the banks equity, rating and CDS

    > Shares are part of RWEs asset portfolio

    > Average Value at Risk (95/1d)1 of share price changes in 2011: 12m

    RWE AG: Financial risk management

    ForeignExchange(FX) Risk

    InterestRate Risk

    CounterpartyRisk (banks)

    Equity Risk

    Main financial risk factors are:

    > Financing costs:

    Rising interest rates may lead to higher financing cost Interest rate exposure from financing activities

    is measured with Cash Flow at Risk

    Average Cash Flow at Risk (95/1y)2 in 2011: 19m

    RWE Group companies are subject to strict risk management which is regulated by group-wide directives

    Financial derivatives are not to be used for speculative purposes and serve only to hedge risks arising from operations

    1 Confidence level: 95%; holding period: 1 day.

    2 Confidence level: 95%; holding period: 1 year.

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    RWE bond programme

    Major bonds issued by the RWE Group1

    1 As of 31 July 2012.2 First occasion for RWE to redeem the hybrid bond.

    3,853.7Total hybrid capital

    XS0767140022A1ML2E7.00012.10.2017229.03.2012limited814.11,000.0PublicUSDRWE AGXS0652913988A1ML0G7.00020.03.2019220.03.2012perpetual956.7750.0PublicGBPRWE AGCH0185843049A1PGUU5.00026.07.2017228.06.2012Limited124.9150.0PublicCHFRWE AGCH0136594352A1MAVP5.25004.04.2017221.10.2011Limited208.1250.0PublicCHFRWE AGXS0542298012A1EWR04.62528.09.2015228.09.2010perpetual1,750.01,750.0PublicEURRWE AG

    Hybrid bonds

    16,080.5Total

    24%3,818.7Redemptions from 2030 onwards17.02.204017.02.201030208.320,000.0PrivateJPYRWE AG

    XS0437306904A0AJN26.12506.07.203906.07.2009301,275.61,000.0PublicGBPRWE Finance BVXS0735770637A1GZLK4.75031.01.203417.01.201222765.4600.0PublicGBPRWE Finance BVXS01625132117485375.75014.02.203314.02.200330600.0600.0PrivateEURRWE AGXS01470487628553286.25003.06.203026.04.200228969.4760.0PublicGBPRWE Finance BV

    25%3,986.7Redemptions 2019 - 2023 XS01707327388787615.62506.12.202303.07.200320621.9487.5PublicGBPRWE Finance BV

    XS0437307464A1AJN35.50006.07.202206.07.200913637.8500.0PublicGBPRWE Finance BVXS0412842857A0T6L66.50010.08.202109.02.200912,51,000.01,000.0PublicEURRWE Finance BVXS01279923366486636.50020.04.202120.04.200120727.1570.0PublicGBPRWE Finance BVXS0399647675A0T3SP6.62531.01.201920.11.2008101,000.01,000.0PublicEURRWE Finance BV

    24%3,930.0Redemptions 2015 - 2018XS01728516509579555.12523.07.201823.07.200315980.0980.0PublicEURRWE Finance BVXS0158243013748536floating15.11.201715.11.200215100.0100.0PrivateEURRWE AGXS01279847476486616.25020.04.201620.04.200115850.0850.0PublicEURRWE Finance BVXS0412842428A0T6L55.00010.02.201509.02.200962,000.02,000.0PublicEURRWE Finance BV

    27%4,345.1Redemptions 2012 - 2014XS0196302425A0DAN14.62523.07.201423.07.200410530.0530.0PublicEURRWE Finance BVXS0399648301A0T3SN5.75020.11.201320.11.200851,000.01,000.0PublicEURRWE Finance BVXS01470482598553296.37503.06.201326.04.200211803.6630.0PublicGBPRWE Finance BVXS0485309156A1ATAH2.00011.02.201311.02.20103203.5250.0PrivateUSDRWE Finance BVXS01470305548553276.12526.10.201226.04.2002111,808.01,808.0PublicEURRWE Finance BV

    ISIN CodeGermanSecurities

    Code

    Coupon (%)Maturity DateIssuance DateTerm inYears

    Volumein mn

    Volume IssueCurrency

    in mn

    PlacementCurrency1Issuer

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEFixed income financing

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    Financial liabilities and assetsexcluding hybrid capital as of 30 June 2012

    1 Excluding variation margins which are netted against the fair values of the respective derivatives.

    Financial assetsin billion euros

    Securities Collateral, margin payments1

    Cash/cashequivalents

    Other: other financial receiv-ables, financial receivableswith non consolidated compa-nies, other loans receivable

    2.9

    0.4

    3.3

    0.8

    0.8

    2.22.2

    0.7

    0.3

    1.0

    0

    2

    4

    6

    8

    10

    6.6

    0.7

    7.3

    Short term( 12 months)

    Long term(> 12 months)

    Total

    Split ofsecurities

    Interest bearinginstruments

    Equity

    Real estate(0%)

    Alternativeinvestments (0%)

    82.6 %

    17.4 %

    Financial liabilitiesin billion euros

    2.8

    13.716.5

    0.6

    0.6

    0.3

    1.4

    1.1

    1.8

    1

    2.8

    0

    5

    10

    15

    20

    25

    Short term( 12 months)

    Long term(> 12 months)

    Total

    Bonds, incl.other notespayable

    Collateral, margin payments1

    Loans withbanks

    Other: including CP of 1.1bn, finance leasing, financialliabilities with non consolidatedcompanies, other financialliabilities

    5.5

    15.8

    21.3

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERisk management

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    Group Wide Risk Management System

    RWE AG Executive Board

    Overall responsibility for group wide risk management system

    Group ControllingCredit Risk Controlling Unit

    Controlling of credit risks

    Accounting Department

    Controlling of risks in financialreporting

    Operating Companies

    Group Controlling

    Controlling and coordination of group wide risk management system

    Asset ManagementCommittee

    Management of risks associatedwith investments in securities

    Risk Management CommitteeResponsible for implementing, monitoring and refining group wide risk management system

    Finance DepartmentFinancial Controlling Unit

    Operating management offinancial risks

    Commodity Management

    Management ofcommodity risks

    Group ControllingRisk Controlling Unit

    Controlling of commodity risks

    Organisation of risk management in the RWE Group

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERisk management

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    > Overall responsibility for risk management system

    > Establishes the rules and minimum standards

    > Defines limits for aggregated market and credit risks

    > Takes decisions on transactions that can result in substantial risks

    > Defines the overall hedging strategy

    > Responsible for tracking and monitoring commodity risks with regard to both the market and the credit side

    > Is responsible for the approval of methods and models for the valuation of commodity risks

    > Sets standards for risk measurement, monitors commodity risks and reports on these to the ExecutiveBoard

    > Analyses and approves credit limits for large commodity counterparties, large suppliers and banks

    > Handle operative commodity and credit risk management

    > Control and monitor commodity risk positions

    > Manages strategic commodity positions

    > Grants approvals for detailed hedging strategies and large commodity transactions within the frameworkdetermined by the Executive Board

    > Derives detailed limits for the commodity risks of the operating companies from the risk caps establishedby the Executive Board

    RWE's commodity risk management infrastructure

    CFO ofRWE AG

    RWE AGExecutive Board

    Group Controlling

    Operatingcompanies

    Commodity

    Management

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERisk management

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    RWE Supply & Trading commodity risk limit system

    > RWE Supply & Trading is the RWE Groups interface to the wholesale markets for power and energy commodities,while serving as an internal transaction partner for hedging commodity risks

    > The global risk limits in the energy trading business are set and constantly monitored by the Executive Board ofRWE AG

    > Risk limits are then further detailed:

    RWE AG Executive Board

    Organisational Unit Commodity Management

    RWE Supply & Trading Board

    Global limits for market risks

    Detailed market risk limits

    Limits for single desks/books/traders

    restrict

    restrict

    grants

    grants

    grants

    Comments onadequacy of

    limit requests tobe granted by

    executive boardand monitorslimit utilization

    Group Controlling

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERisk management

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    Credit risk management at the RWE Group

    1 EFET: European Federation of Energy Traders.

    > Bundling of know-how in a central credit risk management unit

    > RWE Supply & Trading was a key driver of the EFET1 standards for power and gas with more than130 EFET agreements having been signed so far

    > RWE Supply & Trading plays a leading role in the development of exchanges/OTC clearing

    > Counterparties are assessed using internal rating tools, where available external rating informationare also taken into account

    > All counterparties are monitored on an ongoing basis and reviewed on a regular basis

    > Credit capital costs are based on the rating/probability of default (PD) of a counterparty

    > Performance determination includes credit risk charges

    > Potential future credit exposure (= potential replacement value) is calculated with a Value-at-Risk-like

    methodology> In addition, both current and future settlement exposure is measured

    > Counterparty credit exposures are reviewed on a near-time basis

    > Groupwide credit policy has been established. Above all, it is based on overall limitation andmaximum individual counterparty limits and tenors (based on the creditworthiness of a counterparty)for upper-size business

    Driver of credit riskmitigation

    Robust counterpartyrisk assessment andmonitoring

    Clear creditincentives

    State of the art

    measurement andmonitoring of exposures

    High-levelcredit policy

    Organisation Strategy & financing RWEMarket dataPolitical environment

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    63 Overview

    64 Combined Heat and Power (CHP) Act

    65 Renewable Energy Act

    72 Climate policy

    75 Emissions trading

    80 Large Combustion Plant Directive (LCPD)82 Grid

    Political environment

    RWE Facts & Figures | Updated September 2012

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEOverview

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    1 Announced or going through the legislative procedure.2 Renewable Energy Act.

    3 Renewable Obligation Certificate.4 Sustainable Energy Incentive Scheme (Subsidieregeling duurzame energieproductie).

    Major regulatory measures in RWEs core markets

    Major regulatory measures in the Europeanutility markets

    Core issueMarket design/

    unbundlingEnergy

    efficiencyCO2 reduction Renewables

    Conventionalgeneration

    EU

    National

    3rd SingleMarket Package

    Energy Efficiency Directive1

    ETS Directive

    Renewable EnergyDirective

    Carbon Tax

    2012 Amendmentto the REA2

    ROC3

    NuclearPhase-out

    2012 Amendment to the Energy Act

    Climate Protection Act1 in North Rhine-Westphalia

    Retail MarketReform1

    Energy MarketReform1

    ECO/ Green Deal

    More with Less SDE+4Coal tax1

    Industrial EmissionsDirective

    Large CombustionPlant Directive

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWECHP

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    German Combined Heat and Power Generation Act1

    1 Figures and scheme taken from the amendment in 2012 effective July 19, 2012.

    Issue Combined heat and power (CHP) legislation

    Term Effective since April 2002, amended on January 1, 2009 and in July 2012. The provisions of this Actapply to all CHP plants commissioned after July 19, 2012.

    Aim >Modernisation and new build of high efficient CHP plants for energy conservation and CO2 reduction> 25% share of CHP electricity generation by 2020

    Object of subsidy >Electricity actually generated in CHP plants (back pressure) including internal consumption of industry

    >Support is no longer connected to the feed into supply grids

    >2009: Scope of the law extended to heating grids; 2012: scope extended to cooling grids as well as toheating and cooling storage

    Levels of subsidy >The amount and duration of compensation varies depending on the year of operation as well as the sizeof the plant, whereby modernized plants and fuel cells are assigned a separate compensation category>Plants with commissioning date between January 1, 2009 and December 31, 2020 are eligible for thesubsidy

    Volume >Annual cap of 750 million including 150 million for heating and cooling grids and heating and coolingstorage

    > 396 million in 2010; 5,776 million since April 2002

    Funding Allocation to total supplies to end customers from the public supply grid

    Limitation of the burden on industry >Max. 0.05 ct/kWh for large consumers with a yearly consumption of more than 100,000 kWh

    >Max. 0.025 ct/kWh for energy-intensive industry (> 4% of energy costs of gross production value)

    Passing-on clause Network operators have the right to pass on all feed-in payments

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERenewable Energy Act

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    German Renewable Energy Act1 (I)

    1 Figures and scheme taken from the German Renewable Energy Act effective as of January 1, 2012.

    Issue Renewable energy legislation

    Term >Effective since April 2000 and mainly amended on August 1, 2004, January 1, 2009 and January 2012

    >Different support of plants with service lives of up to 20 years

    Aim Supports introduction of renewables-based electricity generation plants and helps to meet the emissionsreduction target set by the federal government: min. 35% electricity production from renewables by 2020

    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 (wind, water, biomass, solar, biogas,geothermal energy)

    Volume Approx. 16 billion feed-in tariffs in 2011 without system costs (grid, balancing power); projection for2012: 18 billion, projection for 2013: 19.3 billion

    Funding Amount allocated to total supplies to end customers from the public supply grid was about 3.53 ct/kWhin 2011 and is about 3.592 ct/kWh in 2012

    Limitation of the burden for industry Hardship clause came into effect as of January 1, 2006 and was extended on January 1, 2012; reducedamount if a company consumes more than 1 GWh (originally: 10 GWh) and electricity costs are at least

    14% (originally: 15%) of gross production value. Reduction of the EEG surcharge to 10% for a share ofelectricity between 1 and 10 GWh, to 1% for a share of electricity between 10 and 100 GWh. Amount islimited to 0.05 ct/kWh for the share of electricity exceeding 100 GWh.

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

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERenewable Energy Act

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    Renewable Energy Act - Feed-in tariff rates2

    ct/kWh

    German Renewable Energy Act1 (II)

    Hydropower 3.40 12.70

    Landfill gas, sewage gas, pit gas 3.98 8.60

    Biogas from biological waste or liquid manure 14.00 25.00

    Biomass 6.0 25.30

    Geothermal energy 25.00 30.00

    Photovoltaics 13.5 19.5

    Wind power onshoreoffshore

    4.87 9.913.50 19.00

    1 Figures and scheme taken from the German Renewable Energy Act effective as of January 1, 2012(PV: as of April 1, 2012).

    2 Depending on size of plant, year of commissioning operation and technology.

    Source: German Ministry for the Environment, Nature Conservation and Nuclear Safety.

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWERenewable Energy Act

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    2000

    2002

    2004

    2006

    2008

    2010

    2012

    2014

    2016

    bn

    bnkWh

    1601201101009080706050403020100

    Renewable energy surcharges expected to increasefurtherDevelopment of power generated in accordance with the German Renewable Energy Act

    (REA) and REA surcharges for 2000 2016 (forecast)

    130 140 150

    0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 10.0 16.09.0 12.011.0 14.013.0 15.0 17.0 18.0 19.0 20.0 21.0

    170

    22.0 23.0 24.0

    Sources: German Energy and Water Association (BDEW), December 2011.German transmission system operators (www.eeg-kwk.net), data until 2010 as of May 2009, data from 2011 as of November 2010, datafrom 2012 on as of November 2011 (from 2012 on: fees for market premium, direct marketing and PV self consumption included).

    Power generated (bn kWh)

    Power generated (bn kWh, forecast)

    Feed-in fees ( bn)

    Feed-in fees ( bn, forecast)

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    REA1 compensationGenerationsubsidized by REA1

    1 REA = German Renewable Energy Act.2 Next to the power generation subsidised by the German REA of 92,266 GWh in 2011, another 12,332 GWh of power from renewable sources

    (REA electricity) was sold on the free market (direct marketing in accordance with 17 REA).

    3 Including avoided network fees.

    Gross generation in Germany (2011)

    614.5 billionkWh

    Renewable energys share of total electricitygeneration in Germany

    Lignite 24.9%

    Hard coal 18.6%

    Renewable energy 19.9%

    Photovoltaic

    Hydro

    Wind26%

    27%

    1%

    46%

    Biomass

    Nuclear 17.6%

    Other 5.3%

    Gas 13.7%

    Photovoltaic

    Hydro

    Biomass

    Wind

    20%

    2%

    27%

    51%

    92 billion kWh2 16 bn3

    Sources: Gross generation: BDEW, BMWI; REA generation + REA compensation: German transmission system operators(www.eeg-kwk.net) as of November 2010 (provisional data).

    G R bl E A i d

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    0

    5

    10

    15

    20

    25

    2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

    Hydro Biomass Onshore wind Offshore wind Photovoltaic Other

    1.61.2

    2.2 2.63.6

    4.55.8

    7.9

    20.7

    22.1

    9.0 10.0

    12.3

    16.0

    18.0

    19.3

    3.1

    3.8

    5.2

    0.3

    0.1

    4.0

    4.3

    0.2

    23.7

    11.1

    0.2

    7.3

    German Renewable Energy Act compensation andforecast through 2016 billion (gross)

    Source: Renewable Energy Act medium-term forecast of electricity transmission system operators. Data until 2010 as of May 2009, data for

    2011 as of November 2010, data for 2012 onwards as of November 2011 (from 2012 onwards fees for market premium, directmarketing and photovoltaic self consumption included).

    S b id ffi i t ib ti f G R bl

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    Installed capacityMW

    Subsidy efficiency: contribution of German RenewableEnergy Act subsidised power generation in 2011

    Extra cost in millions of Euros, based on an average electricity price of 60/MWh

    39 2 2,791 9 1,298 103 6,194

    1 Next to the power generation subsidised by the German Renewable Energy Act of 92,266 GWh in 2011, another 12,332 GWh of

    power from renewable sources (REA electricity) was sold on the free market (direct marketing in accordance with 17 EEG).Source: Renewable Energy Act medium-term forecast of electricity transmission system operators, November 2010 (provisional data).

    Power generatedbn kWh1

    Power generation

    Power generation (including generation fromdirect marketing according to 17 EEG)

    I t ll d it i G t d di

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    Development of capacity (MW) in 2006 - 2010

    Installed capacity in Germany compensated accordingto the Renewable Energy Act

    Source: Federal Network Agency, EEG-Statistikbericht, August 2012.

    0

    10.000

    20.000

    30.000

    40.000

    50.000

    2006 2007 2008 2009 2010

    17,554

    27,071

    4,685

    1,417

    638

    51,364

    Photovoltaic

    Wind

    Biomass

    Hydro

    Others

    Total

    50,000

    40,000

    30,000

    20,000

    10,000

    Th EU h t th 20% t t f 2020

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEClimate policy

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    Greenhouse gas (GHG) emissions Renewable energy sources (RES) Energy efficiency

    The EU has set three 20% targets for 2020.Achievement of some is challenging

    Mt CO2e

    > 2020 just interim step to even

    tighter targets in 2050> Nuclear moratorium in Germany

    has shifted balances by 45Mtper year

    > Appears most challenging

    > Addressed by EuropeanCommission now

    > Country specific concerns: whenis a house properly insulated?How fast should we move?

    Mtoe

    Source: EuroStat, UNFCCC. GHG=Greenhouse Gas Emissions, CO2e=CO2 equivalent, OE=Oil equivalent. Latest available official data from 2009.

    > EU RES target translates into

    country-specific RES targets ofmember states

    > Attractive RES subsidy schemesimplemented across Europe

    Primary energy consumption (Mt OE)

    4,000

    4,250

    4,500

    4,750

    5,000

    5,250

    5,500

    5,750

    1990

    1995

    2000

    2005

    2010

    2015

    2020

    0%

    5%

    10%

    15%

    20%

    25%

    1990

    1995

    2000

    2010

    2015

    2020

    2005

    Actual GHG emissions

    20% target

    20% target

    RES share of finalenergy consumption

    1,400

    1,500

    1,600

    1,700

    1,800

    1,900

    1990

    1995

    2000

    2005

    2010

    2015

    2020

    EU 27EU 2520% target - EU25

    EU 27 i t k t d hi i it 2020 i i

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEClimate policy

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    > 2009 emissions stand 17% below the1990 level and therefore very close to

    the target of -20% by 2020> Economic crisis accelerated the decline

    in EU GHGs emissions

    > Return to economic growth maytemporarily level off or reverse thedecline in emissions

    > Impact of German nuclear moratoriumis assessed at around 45 mt additionalemissions per year

    > Thats 1% of total EU emissions

    > CO2 balances for the EU ETS haveturned negative and system is nowslightly short

    EU 27 is on track towards achieving its 2020 emissionreduction target (-20%)

    Absolute greenhouse gas emissions in the EU 27, 1970 2009, million ton CO2 equivalents.Source: EEA.

    Official 2010 GHG inventory Scaled trend Mean estimate (2009)

    Mt CO2 equivalents

    -20% target

    4,000

    4,500

    5,000

    5,500

    6,000

    6,500

    1970

    1975

    1980

    1985

    1990

    1995

    2000

    2005

    baseline

    R bl tl it i f f t i

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEClimate policy

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    Share of RES in the utility sector

    %

    Share of RES in final energy demand

    %

    0

    5

    10

    15

    20

    25

    2001 2005 2010 2020

    > According to national renewable energyaction plans the targets for 2020 will be

    met> To achieve these targets renewable

    energy production needs to increaseat an annual growth rate of 5%

    > To achieve the sub-target for the utilitysector, growth in the order of 9% per

    year is required> This requires close to double the

    growth seen between 2005-2010

    > According to EU estimates, annualcapital investments need to doubleto 70bn

    Renewable energy sources: currently it is far from certainthat EU target and utility sector sub-target will be achieved

    20% EU target

    +5%p.a.

    0

    10

    20

    30

    40

    2001 2005 2010 2020

    +9%p.a.

    All t d CO ll 1 i G

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    Allocated allowances EU 27 2011

    Allocated allowances in United Kingdom 2011

    Allocated allowances in Germany 2011

    Allocated CO2 allowances1 in Germany,

    UK and EU-27 (2011)

    Electricity 54%

    Other industries 4%

    Metals 15%

    Cement & lime 8%

    Combustion 12%

    Refineries 7%

    Electricity 52%

    Other industries 3%

    Metals 11%

    Cement & lime 6%

    Combustion 20%

    Refineries 8%

    401 mtCO2

    223 mtCO2

    Electricity 55%

    Other industries 5%

    Metals 12%

    Cement & lime 11%

    Combustion 10%

    Refineries 8%

    1,993 mtCO2

    1 Excluding auctioned certificates and new entrant reserves.

    Source: EEA.

    EU ETS E i i i G UK d EU 27 (2011)

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    Emissions EU 27 2011

    Emissions in United Kingdom 2011

    Emissions in Germany 2011

    EU ETS Emissions in Germany, UK and EU-27 (2011)

    Electricity 68%

    Metals 8%

    Cement & lime 6%

    Combustion 10%

    Refineries 6%

    Electricity 66%

    Other industries 2%

    Metals 6%

    Cement & lime 4%

    Combustion 13%

    Refineries 8%

    450 mtCO2

    221 mtCO2

    Electricity 60%

    Other industries 4%

    Metals 8%

    Cement & lime 8%

    Combustion 12%

    Refineries 7%

    1,879 mtCO2

    Source: EEA.

    Other industries 3%

    CDM/JI projects give RWE access to cost effective

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    Joint Implementation (JI)

    Emission reductions through investmentby one industrialised country in a second

    industrialised country are credited to theemission account of the investor country

    Clean Development Mechanism (CDM)

    Emission reductions through investment byan industrialised country in a country without

    reduction commitments are credited to theemission account of the investor country

    CDM/JI projects give RWE access to cost-effectivereduction of greenhouse gas emissions (I)

    Source: UNFCCC; http://cdm.unfccc.int.

    Germany/UK E.g. RussiaEmission rights

    Investment

    Germany/UK Emission rights E.g. China

    Investment

    CDM/JI projects give RWE access to cost effective

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEEmissions trading

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    Expected average annual certificates from registeredCDM projects by host country in September 2012

    > By September 2012, a total of

    4,547 registered CDM projects isexpected to supply more than 2.2billion certificates by the end of2012

    > A substantial portion of thecertificate volumes contracted areaccounted for by Chinese projects

    CDM/JI projects give RWE access to cost-effectivereduction of greenhouse gas emissions (II)

    China 64.2%India 10.9%

    Brazil 3.9%

    Republic of Korea 3.1%

    Mexico 2.0%

    Indonesia 1.3%Vietnam 1.4%Uzbekistan 1.0%

    Others 12.2%

    Source: UNFCCC; http://cdm.unfccc.int.

    RWEs current Kyoto credit portfolio for 2008 2012

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    Projects by December 2011

    million certificates

    RWEs current Kyoto credit portfolio for 2008-2012

    1 ERPA = Emission reduction purchase agreement.2 In Operation: Projects that have already issued certificates.3 Latest EU-directive for certificates implies no additional redemption capacity for RWE Power concerning the years 2013 till 2020,

    but usage of certificates is still enabled post 2012. RWEs redemption capacity consists of the redemption capacity of RWE Power,RWE npower and Essent.

    Contract volume by region

    3

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90100

    ~100in

    validation

    inoperation2

    ERPA1

    inoperation2

    invalidation

    ERPA1

    RWE's redemptioncapacity

    (2008 - 2020)3

    Contract volume by technology

    HydroN2OHFC23Energy EfficiencyWind

    BiogasCMMBiomassMethane avoidanceSolarFugitiveothers

    N2O

    China

    South Korea

    Egypt

    India

    South-East-Asia

    East-Europe

    UkraineRussia

    Least developed countries

    South America

    Contractvolume

    Riskadjustedvolume

    The EU Large Combustion Plant Directive (LCPD)

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWELCPD

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    The EU Large Combustion Plant Directive (LCPD)

    Step 1

    > Power plants had to choose whether to comply with the LCPD or request a limited life derogation (opt out)

    > Power stations which opted out are allowed to run for 20,000 hours, or until the end of 2015, whichever comes sooner

    Step 2

    Those power stations which comply with the LCPD are governed in one of two ways 1:

    > Emission Limit Value (ELV)The power station must adhere to specific limits to the amounts of pollutants produced on a milligram per cubic metre of waste gas basis

    > National Emission Reduction Plan (NERP)A company is given an overall allowance (amount of a pollutant that can be emitted per year) of emissions it may produce.The emission allowances issued under NERP are tradable within a member state

    Step 3

    > In addition to the above, existing oil and coal-fired power plants must reduce nitrogen oxide emissions from 500 mg/Nm3 to 200 mg/Nm3

    by January 1, 2016. This will entail fitting selective catalytic reduction (SCR) equipment

    1 While most the EU member states, including Germany, chose to implement Emission Limit Values (ELV), a number have opted for National

    Emission Reduction Plans (NERPs), while in the UK individual power plants could choose between being regulated on the ELV, or under a NERP.

    Since 2008, coal and oil-fired power stations have been governed by the Large Combustion Plant Directive (LCPD). This imposes new limitson the amounts of sulphur dioxide (SO2), nitrogen oxides (NOx) and dust power stations can emit.

    Due to the LCPD a shut down of 11 12 GW by the end

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    Due to the LCPD a shut-down of 1112 GW by the endof 2015 (or earlier) is expected in the UK marketInstallation Operator Fuel Installed

    capacity(MW)

    Capacityopted in1

    (MW)

    Capacityopted out2

    (MW)

    FGD3 status

    Eggborough British Energy Coal 1,960 1,960 - 2 out of 4 units fitted

    Drax Drax Power Coal 3,870 3,870 - Fitted

    Kingsnorth E.ON UK Coal/Oil 1,940 - 1,940 No FGD

    Ratcliffe E.ON UK Coal 1,960 1,960 - FittedIronbridge E.ON UK Coal 940 - 940 No FGD

    Grain E.ON UK Oil 1,300 - 1,300 No FGD

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

    West Burton EDF Energy Coal 1,970 970 - Fitted

    Rugeley International Power Coal 1,000 1,000 - Fitted

    Didcot A RWE npower Coal/Gas 1,940 - 1,940 No FGD

    Aberthaw RWE npower Coal 1,530 1,530 - FittedLittlebrook RWE npower Oil 1,370 - 1,370 No FGD

    Fawley RWE npower Oil 1,000 - 1,000 No FGD

    Tilbury RWE npower Coal 1,020 - 1,020 No FGD

    Ferrybridge Scottish & Southern Energy Coal 1,960 980 980 Fitted

    Fiddlers Ferry Scottish & Southern Energy Coal 1,960 1,960 - Fitted

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

    Cockenzie Scottish Power Coal 1,152 - 1,152 No FGDUskmouth Scottish & Southern Energy Coal 363 363 0 Fitted

    Total 31,539 18,897 11,642

    1 Compliant with LCPD emission limits (Drax, Eggboroughand Longannet in NERP).

    2 Limitation of operating hours to 20,000 between Jan. 1, 2008 and Dec. 31, 2015. No requirement to fit FGD.

    3 FGD: flue gas desulphurisation.

    Source: DECC (DUKES).

    The German Energy Industry Act: regulating grid access

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEGrid

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    The German Energy Industry Act: regulating grid accessand grid fees in the electricity and gas markets

    Unbundling of grids from generation, wholesale and retail

    (number of grid operators)

    Exploration/generation

    Regulation of grid access andgrid fees

    Retail

    Competition

    CustomersExchangetrading OTC

    CompetitionCompetition

    TransportBundesnetz-agentur1

    (electricity: 4,gas: 14) Distribution

    federal states(electricity and gas:

    ca. 1,200)

    DistributionBundesnetzagentur1

    (electricity and gas:ca. 300)

    1 Federal Network Agency.

    The German Energy Industry Act: unbundling in the

    ORGANISATION STRATEGY & FINANCING POLITICAL ENVIRONMENT MARKET DATA RWEGrid

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    Informationunbundling

    Accountingunbundling

    Functionalunbundling

    Legalunbundling

    OU3 orISO4/ ITO5

    The German Energy Industry Act: unbundling in theGerman energy grids (3rd Energy Package)

    TSO1

    1 TSO = Transport System Operator, to be certified by the national regulator.2 DSO = Distribution System Operator.3 OU = Ownership Unbundling, transmission system is directly completely unbundled.

    4 ISO = Independent System Operator, only if transmission system was part of a vertically integrated company on 3 September 2009.5 ITO = Independent Transmission Operator, only if transmission system was part of a vertically integrated company on 3 September 2009.

    DSO

    2

    >100,000customers

    DSO2

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    Investments before / since 2006