Investor Presentation As of August 2020 Disclaimer This document - - PowerPoint PPT Presentation

Investor Presentation

As of August 2020

Page 2 Investor Presentation August 2020

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.

August 2020 Investor Presentation

Page 4 Investor Presentation August 2020

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 world Investment highlights

Page 5 Investor Presentation August 2020

Business model fully aligned with our strategic focus

• n the energy transition

Supply & Trading Onshore wind/Solar

Core Coal/Nuclear

• Trading/origination
• Gas & LNG
• Commodity

solutions

• Principal

investments

• Gas storage

business

• Onshore and solar
• perations in
• Europe & APAC
• Americas

Offshore wind

• Global offshore

activities

Hydro/Biomass/ Gas

• Hydro, biomass and

gas plants in Germany, UK, Netherlands

• Kelag stake
• German lignite
• perations; mines

and plants

• German hard coal

plants

• German nuclear

power plants

• Holding in Dutch

EPZ (nuclear)

Carbon factor2 Share of coal in Group revenues g/kWh GW Installed capacity1

1 Pro rata installed capacity of core business. | 2 Calculated for pro forma generation portfolio of core business. | Note: Figures for FY 2019.

Decarbonisation is an integral part of our strategy

Target to achieve CO2 neutrality for our global generation portfolio by 2040 Fully supportive of Paris Climate Agreement Proven track record of carbon emission reductions 2012 2019 2030 2040 million tonnes CO2 Neutral

August 2020 Investor Presentation Page 6

Page 7 Investor Presentation August 2020

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

• Recultivation

programme with focus on biodiversity

• Increase in ecology

in renaturalised mining areas

• 27% and 19%

women in 1st and 2nd management level1

• Member of the

2020 Bloomberg Gender Equality Index (GEI)

• Leading operator of

wind and solar with ~ ~9 GW installed capacity

• Highly efficient and

flexible power plant portfolio

• Strong employer

with workforce of more than 20,000 people

• Regional support for

structural change and energy transition

• Strong commitment

to global climate goals

• Target to be carbon

neutral by 2040

• Focus on storage

technologies to support the energy transition

• Part of High-Tech

Gründerfonds III since 2017

• Strict compliance

requirements with RWE’s Code of Conduct

• Member of

Bettercoal to promote standards in hard-coal supply chain B (Climate Change) 68 out of 1002 A (from AAA to CCC) 54 out of 100 (12th out of 30 utilitites)

1 Below the Executive Board of RWE AG. | 2 Sustainalytics ESG Rating.

C+ (from A+ to D-)

Successful first six months of the year

August 2020, H1 Earnings call

H1 2020 Earnings & Operations

August 2020 Investor Presentation

Page 9

• Adj. EBITDA for core business up ~9% to €1.5bn versus pro forma 2019, adj. EBITDA of

RWE Group at €1.8bn

• FY2020 outlook and dividend target of €0.85 per share confirmed. Adj. EBITDA for core

business and Group to be at the upper end of guidance

• Net debt at ~€7.8bn at the end of June in line with expectations. Leverage factor of 3.0x (net

debt/core adj. EBITDA) at year end envisaged

• Final step of transaction with E.ON closed. Full legal & HR integration completed
• Broad market entry France: Onshore Wind/Solar development pipeline of 2.7 GW to be

acquired from Nordex

• German Coal Phaseout Act becomes law - clear path for RWE on how to exit coal

Successful first half 2020 – continuous improvement of renewables pipeline and FY outlook confirmed

August 2020 Investor Presentation

Page 10

Deal to acquire Nordex’s 2.7 GW European Onshore Wind/Solar development pipeline underpins future growth ambitions

August 2020 Investor Presentation

European Markets with RWE Onshore Wind/Solar assets in

• peration

~1.8 GW Onshore and > 0.1 GW Solar development pipeline French support scheme: 20yrs index-linked 2-sided CfD

• Market entry in France, an attractive renewables

market with ambitious build-out targets by 2030

• Experienced team of more than 70 professionals

mostly based in France will join RWE upon completion

• f the transaction
• Well balanced pipeline in France, Spain, Sweden and

Poland across different development stages – commissioning of approx. 500 MW by 2025

• Approx. 230 MW with secured CfDs or CR2017 tariffs
• Closing expected before year end 2020 following

receipt of customary approvals We strengthen our European market presence in Onshore Wind/Solar

~0.4 ~0.4

GW from Nordex development pipeline

~1.9 >0.01

Page 11 August 2020 Investor Presentation Note: pro forma adj. EBITDA according to new business segments and inclusion of assets acquired from E.ON for full FY2019.

• Adj. EBITDA of core business on the rise to €1.5bn in H1
• Excellent wind conditions in Q1 push Offshore

Wind earnings to high level in H1

• Capacity additions and good wind conditions

strengthen earnings at Onshore Wind/Solar

• Increase in result at Hydro/Biomass/Gas mainly

due to GB capacity payments

• Supply & Trading puts in a strong performance

+9%

• Adj. EBITDA for RWE Group, incl. Coal/Nuclear amounts to €1,807 million (+18%) in H1 2020

Core adj. EBITDA H1 2020 vs. H1 2019 pro forma, € million

490 585 244 273 221 324 461 322 H1 2020 core adj. EBITDA H1 2019 core adj. EBITDA pro forma

• 39

Supply & Trading

• 7

Other/Consolidation Hydro/Biomass/Gas Onshore Wind/Solar Offshore Wind 1,377 1,497

Page 12

Further investment decisions for onshore and solar projects

• f ~200 MW – on track to reach >13 GW target

August 2020 Investor Presentation

Wind/Solar installed capacity increases to 8.9 GW and further 3.1 GW under construction/FID H1 2020

Installed capacity 31 Mar 20 1.1 Installed capacity 31 Dec 19 1.3 0.2 Changes COD 2020 0.9 COD 2021 0.9 COD 2022 Residual target Target 2022 8.7 >13.0 8.9

Projects under construction/FID

1.2 Onshore 0.1 Solar 0.4 Onshore 0.5 Solar 0.9 Offshore

GW pro rata

Note: Additional 30 MW installed capacity from batteries as well as battery projects of 109 MW under construction/FID. | Excluding capacity addition from the Nordex development pipeline. Rounding differences may occur.

• FID for Hickory Park solar farm in US

(196 MW), with co-located storage (40 MW). Expected COD 2021

• Further FIDs for smaller Onshore/Solar/

Battery projects in NL, PL, IE taken

• Agreement for Lease secured for UK

Awel y Môr Offshore wind farm (300 MW)

• Dublin Array offshore project (300 MW) in

Ireland fast tracked. Expected COD 2026

• Floating offshore demonstration project
• f 10-12 MW in Maine, US

31 Dec 2019 30 Jun 2020

Page 13

1 Gradual commissioning process: Raymond East, 200 MW expected COD Q4 2020, Raymond West, 240 MW expected COD Q1 2021. | Note: Construction including pre-construction/preparation works.

Where are we with our major construction projects?

August 2020 Investor Presentation

Project

Country Expected COD Status Comments Capacity pro rata

Triton Knoll

Q1 2022 Construction –

• n track

Offshore construction

• ngoing with

cables, substations and foundations all progressing in advance of turbine installation in 2021 509 MW

Kaskasi

Q4 2022 342 MW Preparation Phase Contracts signed with main suppliers; offshore construction works to start in Q3 2021

Clocaenog Forest

Q3 2020 96 MW Commissioning Phase All turbines generating, final wind farm testing and final COD

• utstanding

Limondale

Q1 2021 249 MW Commissioning Phase Registration has been received by the grid operator and the hold point testing as well as final commission- ning process is commencing

Cranell

Q3 2020 220 MW Commissioning Phase Grid availability has been achieved

Big Raymond

Q4 2020 and Q1 20211 440 MW Construction – slightly delayed Construction work

• progressing. All

long lead time balance of plant equipment and material is on site. COVID-19 related supply chain issue

• n portion of

turbine supply

Scioto Ridge

Q4 2020 250 MW Construction –

• n track

Construction work

• ngoing. Turbine

erection is

• progressing. Grid

availability has been achieved and turbine commis- sioning will begin shortly

Offshore Wind Onshore Wind Solar

• prev. Q2 2020
• prev. Q2 2020
• prev. Q4 2020

Page 14

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 of ~€0.8bn at solid level as a result of a very

good operational performance in H1 2020

August 2020 Investor Presentation

• Adj. EBITDA excludes non-operating result
• Adj. financial result includes E.ON dividend of €182

million as well as losses in financial asset portfolio from Q1 and negative mark-to-market valuation of FX

• derivatives. Financial result mainly adjusted for lower

discount rates of mining provisions

• Adjustments of tax refer to a general tax rate of 15%

in line with the expected mid-term tax level at RWE Group1

• Adj. minority interest mainly for fully consolidated

wind/solar projects, adjusted for minorities stemming from discontinued operations

• Adj. net income, € million

H1 2020

1,807 795

• 719
• 140

1,088

• 142
• 11
• Adj. tax
• Adj. financial result
• Adj. EBITDA

H1 2020

• Adj. net income

H1 2020

• Adj. depreciation
• Adj. EBIT
• Adj. minority interest

Page 15

1 Excludes nuclear provisions since utilisation is not net debt effective and will be refinanced via financial debt.

• Changes in provisions driven by legacy and

restructuring provisions among others

• Positive effects in ‘Changes in operating working

capital’ mainly from receipt of GB capacity market payments for the years 2018 (pro rata) and 2019 as well as reduction of gas inventories

• Positive ‘Cash financial result’ as a result of E.ON

dividend in Q2 Reconciliation to adj. operating cash flow, € million H1 2020

• Adj. operating cash flow tops €2bn mainly due to

good adj. EBITDA

August 2020 Investor Presentation

437 Adj. EBITDA

• 24
• 236

Changes in provisions/ (Non-) Cash items1 Cash financial result 76 Changes in

• perating

working capital Cash taxes Adj.

• perating

cash flow 2,060 1,807

Page 16

1 Adjustment of approx. -€0.1bn from retroactive adjustment to the initial consolidation of the renewable energy business acquired from E.ON in 2019. | 2 Includes pension and wind provisions but excludes

nuclear provisions as they are not part of adj. operating cash flow. | Note: Rounding differences may occur.

Development of net debt continuing operations, € billion H1 2020

Net debt increase since fiscal 2019 due to timing effects from hedging activities as expected

August 2020 Investor Presentation

RWE continuing

• perations

31 Dec 191 1.0

• 2.1

Dividend

• Adj. operating

cash flow 0.5 Net cash investments 1.5 Other changes in net financial debt

• 0.1

Changes in provisions2 RWE continuing

• perations

30 Jun 20 6.9 7.8

• RWE’s dividend payment for fiscal 2019 after virtual AGM on 26 June 2020
• Timing effects from hedging such as variation margins and CO2 provisions of ~€1bn in ‘Other changes in net financial debt’
• Changes in provisions driven by a decrease in pension provisions and partly offsetting effect from wind provisions

Core adj. EBITDA: ~€2.15 – 2.45bn

Outlook for fiscal year 2020

August 2020 Investor Presentation

• Adj. EBITDA RWE Group:

~€2.7 – 3.0bn

• Adj. EBIT:

~€1.2 – 1.5bn

• Adj. net income:

~€0.85 – 1.15bn Dividend target: €0.85 per share

Creating value in the renewable energy world

March 2020, Capital Market Day

Strategy & Financial Update March 2020

August 2020 Investor Presentation

Global commodity trading & commercial asset

• ptimisation

Global analyst platform is key to our success Commodity solutions for GW in hydro, biomass and gas plants Thereof GW pumped storage/batteries bcm of gas storage

We are ideally positioned for the new energy world

Strong wind and solar business Experienced operator

• f flexible assets

Leading commercial platform GW installed wind and solar capacity No.

• ffshore

global player GW develop- ment pipeline

August 2020 Investor Presentation Page 19 Note: Pro rata installed capacity. Figures as of 31 Dec 2019.

blue chip customers

Powerful position in wind and solar

1 Pro rata, excluding storage. | 2 Excluding storage. | 3 Including Feed-in tariffs (FiTs), contracts for difference (CfDs), fixed certificates and PPAs/Tax credits.. | 4 Includes assets in operation and under construction

with CfDs/FiTs, fixed certificates, PPAs/Tax credits. | Note: Figures as of 31 Dec 2019. Rounding differences may occur.

Installed capacity by technology1 Installed capacity per country1 Pro forma EBITDA 2019 70% 28% Offshore Onshore 2% Solar 8.7 GW 16% 24% 5% Italy Germany Poland 4% UK 3% US Netherlands Spain 5% 38% 3% ROW 8.7 GW Increasing capacity2

August 2020 Investor Presentation Page 20

GW Projects under construction 69% 22% 9% €1.4 bn Offshore Wind Onshore Wind/ Solar Americas Onshore Wind/ Solar Europe & APAC Regulated

• r secured3

Years weighted average remaining contracted tenor4 High level of earnings stability

Strategy of core business focused on expansion of green and flexible energy

Significant growth in wind & solar Build-out of batteries and research in new technologies Green power commercialisation 2019 Target 2022

• Batteries: 30 MWh battery

storage facility under construction in Ireland

• Thermal energy storage:

pilot project of liquid salt storage charged by wind and sun power

• Hydrogen: Feasibility study

to build 105 MW power-to- gas pilot project 15 year PPA for Nysäter project covering 18 TWh - one of the largest

• nshore wind PPAs globally

15 year tailored PPA with Honda for 120 MW offtake from a 150 MW wind farm in Oklahoma, US Commercialisation of electricity generated by Belgian Northwester 2 wind farm

August 2020 Investor Presentation Page 21

GW pro rata

Note: Installed capacity excluding storage. As of 31 Dec 2019.

5 year offtake agreement for portion

• f Nordsee Ost offshore wind farm

7 year supply agreement to take 3 TWh of green energy

Offshore Wind: Attractive near-term build-out coupled with long-term development options

1 Under construction. | 2 Before asset rotation. | 3 2012 prices. | 4 €46.6 per MWh was the average strike price achieved in the auction. | Note: As of 31 Dec 2019.

Secured near-term capacity build-out Further projects in development, GW pro rata

4.9 Triton Knoll 2019 Kaskasi 0.5 1.4 2026 Sofia 0.3 0.2 Dunkerque 2.5

1

Country Exp. COD CfD strike price (per MWh) 2022 2022 2026 2026 £74.75 3 >€46.6 4 €44 £39.65 3 Delta Nordsee Pre-emption right 0.5 GW Nordsee Two&Three Pre-emption right 0.1 GW Rampion Extension option 0.4 GW Gwynt y Môr Extension option 0.3 GW Greater Gabbard Extension option 0.3 GW Galloper Extension option 0.1 GW Dublin Array Development project 0.3 GW Sharco II, IV & V Development project 1.5 GW Baltic II Development project 0.3 GW Södra Midsjöbanken Development project 1.6 GW 5.4 GW

August 2020 Investor Presentation Page 22

2

GW pro rata

Onshore Wind/Solar Europe & APAC: Well diversified pipeline providing opportunities for profitable growth

1 CfD: Contract for Difference. | 2 LGC: Large Scale Generation Certificates (Green certificates for large producers in Australia). | Note: Installed capacity excluding storage. | As of 31 Dec 2019.

Development pipeline Near-term capacity build-out and development by the end of 2022

0.6 4.4 Selected projects Capacity COD Support scheme Support expiry Offtake partner Clocaenog Forest 96 MW Q1 2020 Two-sided CfD1 2035 n.a. Alarcos 45 MW Q2 2020 PPA n.a. Audax Renovables Limondale 249 MW Q3 2020 LGC2 2030 n.a. Eekerpolder 63 MW Q4 2020 One-sided CfD1 2035 Market/Government Zukowice 33 MW Q4 2020 Two-sided CfD1 2035 n.a. Nysäter 95 MW Q4 2021 Firm hedge + Green certificates 2036 Energy company Under construction 0.8 Installed capacity 2019 0.8 Near-term growth ambition Estimated installed capacity 2022 2.9 4.5

August 2020 Investor Presentation Page 23

GW pro rata GW pro rata

~5.0

Onshore Wind/Solar Americas: Substantial 2020 wind construction programme, with good optionality during PTC ramp-down

Development pipeline Near-term capacity build-out and development by the end of 2022

~9.7 5.1 4.6 Major projects Capacity COD ISO Offtake product Offtake tenor Offtake partner Cranell 220 MW Q2 2020 ERCOT Firm hedge hub 12 years Undisclosed LSE1 Peyton Creek 151 MW Q1 2020 ERCOT Self-structured hedge 10 years Multiple trading counterparties Vauxhall & Hull 47 MW Q2 2020 AESO UC2 PPA node Mid-term3 Consumer staples Big Raymond 440 MW Q4 2020 ERCOT UC2 PPA + Firm hedge 12 years Austin Energy + Banking sector Scioto Ridge 250 MW Q4 2020 PJM Firm hedge hub Long-term4 Service sector Boiling Springs 148 MW Q4 2020 SPP UC2 PPA hub 15 years Honda Cassadaga 126 MW Q4 2020 NYISO Firm hedge node Long-term4 Utility Near-term growth ambition Installed capacity 2019 1.4 Under construction 0.6 Estimated installed capacity 2022 3.4 5.4

1 LSE: Load serving entity. | 2 UC: Unit contingent. | 3 Mid-term: 6-10 years. | 4 Long-term: 11-20 years. | Note: PTC: Production Tax Credits. | Note: As of 31 Dec 2019.

August 2020 Investor Presentation Page 24

GW pro rata GW pro rata

Responsible phaseout of coal by 2038 at latest

1 Includes pro forma combined renewables portfolio. | Note: Based on full load hours under normal weather conditions and achievement of government renewables targets. Excluding plants in security reserve.

Production in 2038 refers to first year post closure.

Coal as % of total capacity 44.6% 30.4% <25.0% <10.0% 0% Coal as % of total production 62.4% 38.4%1 <35.0% <20.0% 0% Coal – installed capacity 2012 2019 2023 2030 2038

August 2020 Investor Presentation Page 25

<10.0 GW 4.3 GW 0.0 GW 23.2 GW 12.7 GW

Page 26 Investor Presentation August 2020 Note: 2019 pro forma adj. EBITDA includes approx. €0.5 bn outperformance of RWE Supply & Trading.

RWE’s core business set to show solid growth into 2022

Outlook for adjusted EBITDA for RWE’s core business 2019 pro forma 2020e 2022e Hydro/Biomass/Gas Onshore Wind/Solar Offshore Wind Supply & Trading 2.7 ~2.15 – 2.45 ~2.55 – 2.85 ~8% p.a. Offshore Wind Contribution of Triton Knoll 2021/2022 Onshore Wind/Solar Contribution from new net capacity of ~3.5 GW Hydro/Biomass/Gas Declining GB capacity payments expected to be partly offset by increasing generation spreads Supply & Trading Return to normalised level after exceptionally high earnings in 2019 € bn

Significant investments to grow wind & solar capacity to >13 GW by 2022

RWE’s core capex programme 2020 – 2022 Gross growth capex by region and technology

Offshore Wind Onshore Wind/Solar Americas Onshore Wind/Solar Europe & APAC Net growth capex Asset rotation & divestments Gross growth capex Maintenance in core business ~5 ~0.5 ~8-9 ~3-4 ~45% ~30% ~25%

Germany UK Other Europe Americas APAC Offshore wind Onshore wind Solar & storage ~10% ~30% ~5% <5% <5% ~10% ~20% <5% ~ 5% ~10% <5% Remaining pipeline ~1/3 Committed (FID taken) ~1/3

August 2020 Investor Presentation Page 27

€ bn Close to FID ~1/3

Investor Presentation August 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%

Page 28

August 2020

Solid capital structure provides financial flexibility for core business

Investor Presentation

New definition of net debt (€ million) 31 Dec 2019 Financial assets 9,098 Financial liabilities (incl. hybrid capital adjustment) 5,179 Net financial assets (incl. hybrid capital adjustment) 3,919 Provisions for pensions and similar obligations 3,293 Provisions for nuclear waste management 6,723 Provisions for dismantling wind farms 951 Net debt of continuing operations 7,048

1 Net debt/pro forma core adj. EBITDA; pro forma: new business segmentation and inclusion of E.ON‘s acquired assets for full fiscal year 2019.

• Net debt of €7.0 bn after financial ring-fencing of

coal phaseout liabilities

• 2019 leverage factor1
• Targeted leverage factor

(net debt/core adj. EBITDA) of ≤3.0x

• Focus on maintaining investment grade

rating with target of at least

Baa2/BBB

Page 29

X

Investor Presentation

Commitment to financially ring-fence coal phaseout liabilities with financial portfolio

• Provisions for mining liabilities reflecting accelerated

coal phaseout total €4.6 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’) 4.6 E.ON stake Receivables against GER government Financial portfolio Mining provisions 31 Dec 2019 2.6

August 2020 Investor Presentation Page 30

€ bn Funding of coal phaseout liabilities

RWE targets continued dividend growth in line with core business development

Elements of dividend policy

• Management focus on total shareholder return
• Target to grow future dividends in line with earnings

growth in core business

• Objective of steady growth with potential to smooth

short-term volatility of trading business and weather effects

• Dividend strategy corresponds to a payout ratio

between ~40% and ~60% of adjusted net income 0.85 0.80 2020 2019 €/share Steady growth, in line with core business

August 2020 Investor Presentation

1 2

Page 31

1 Subject to AGM approval. | 2 Management target.

Appendix

Investor Presentation August 2020

Page 33

Offshore Wind: Earnings on the up thanks to excellent wind conditions in Q1

• Adj. EBITDA

t/o non-recurring items Depreciation

• Adj. EBIT

t/o non-recurring items Gross cash investments1 585

• 184

401

• 316

490

• 191

299

• n.a.

+95

• +7

+102

• n.a.

€ million H1 2020 change

• August 2020

Investor Presentation

Key financials H1 - Offshore Wind Stronger performance on the back of above average wind speeds in Q1 2020 H1 2020 vs. H1 2019 pro forma Normalised weather conditions for the remainder

• f the year assumed versus low wind levels in 2019

Outlook 2020 vs. FY 2019 pro forma

pro forma

H1 2019 Gross cash divestments1 +83 n.a. n.a.

Outlook 2020 €900 – 1,100m

Core

1 Gross cash (di-)investments: Sum of (di-)investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures. | Note: pro forma - new business segments and inclusion of

assets acquired from E.ON for full FY2019.

Page 34

Onshore Wind/Solar: Solid earnings in H1 on the back of capacity additions and better weather conditions

• Adj. EBITDA

t/o non-recurring items Depreciation

• Adj. EBIT

t/o non-recurring items Gross cash investments1 273

• 188

85

• 545

244

• 168

76

• n.a.

+29

• 20

+9

• n.a.

€ million H1 2020 change

• August 2020

Investor Presentation

Key financials H1 - Onshore Wind/Solar Increased capacity in Onshore Wind/Solar, Europe and US Higher earnings in Europe from above average weather conditions in Q1 2020 H1 2020 vs. H1 2019 pro forma Increased capacity in Onshore Wind/Solar in Europe and US Normalised weather conditions for the remainder of the year assumed versus low wind levels in 2019 Construction delays, mainly at US assets due to Covid-19 Outlook 2020 vs. FY 2019 pro forma

pro forma

H1 2019 Gross cash divestments1 +21 n.a. n.a.

Outlook 2020 €500 – 600m

Core

1 Gross cash (di-)investments: Sum of (di-)investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures. | Note: pro forma - new business segments and inclusion of

assets acquired from E.ON for full FY2019.

H1

Page 35

Hydro/Biomass/Gas: Good H1 performance after a strong Q1

• Adj. EBITDA

t/o non-recurring items Depreciation

• Adj. EBIT

t/o non-recurring items Gross cash investments1 324

• 169

155

• 177

221

• 159

62

• n.a.

+103

• 10

+93

• n.a.

€ million H1 2020 change

• August 2020

Investor Presentation

Key financials H1 - Hydro/Biomass/Gas Income from GB capacity payments (+€74 million)2 H1 2020 vs. H1 2019 pro forma FY 2020 GB capacity payments of ~€160 million; 2019 includes one-off payment2 for 2018

• f €51 million

Fire at Eemshaven power plant leading to a temporary stoppage of biomass co-firing Outlook 2020 vs. FY 2019 pro forma

pro forma

H1 2019

Outlook 2020 €550 – 650m

Core

1 Gross cash (di-)investments: Sum of (di-)investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures. | 2 Resumption of GB capacity payments in Q4 2019 after

• suspension. Revenues from GB capacity market amounted to €229 million in 2019 and included a one-off payment of €51 million for 2018. | Note: pro forma - new business segments. Former European Power,

including hydro and biomass activities from innogy, excluding German hard coal activities and including 37.9% stake in Kelag.

Page 36

Supply & Trading: Strong and robust trading performance in the first six months of the year

• Adj. EBITDA

t/o non-recurring items Depreciation

• Adj. EBIT

t/o non-recurring items Gross cash investments1 322

• 22

300

• 30

461

• 20

441

• n.a.
• 139
• 2
• 141
• n.a.

€ million H1 2020 change

• August 2020

Investor Presentation

Key financials H1 - Supply & Trading Strong trading performance as well as good result for gas & LNG business; however, earnings contribution below exceptionally high level in the previous year H1 2020 vs. H1 2019 pro forma Exceptionally high earnings contribution in 2019 due to outstanding trading performance and strong contribution from gas and LNG Outlook 2020 vs. FY 2019 pro forma

• t

pro forma

H1 2019

Outlook 2020 €150 – 350m

Long-term average earnings of ~€250 million, including stable earnings contribution from gas storage Core

1 Gross cash (di-)investments: Sum of (di-)investments in (in-)tangible and financial assets, loans to non-consolidated affiliates and capital measures. |

Note: pro forma - new business segments. Includes gas storage activities acquired from E.ON for full FY2019.

Page 37

Coal/Nuclear: Solid earnings on the strength of a good hedge performance

August 2020 Investor Presentation

Hedging outright position2 2020 2021e 2022e 2023e Volume3 Hedge margin4 70-75 TWh ~27 €/MWh 70-75 TWh ~32 €/MWh 55-60 TWh ~32 €/MWh 40-45 TWh ~26 €/MWh

Fully hedged Implicit fuel hedge Open position

Higher realised generation margin for outright position Production plan updated after lignite phaseout agreement H1 2020 vs. H1 2019 pro forma Higher realised generation margin for outright position, ~+3 EUR/MWh in 2020 Production plan updated after lignite phaseout agreement Outlook 2020 vs. FY 2019 pro forma

>90% >90%

• Adj. EBITDA

t/o non-recurring items Depreciation

• Adj. EBIT

t/o non-recurring items Gross cash investments1 310

• 155

155

• 77

148

• 171
• 23
• n.a.

+162

• +16

+178

• n.a.

€ million H1 2020 change

• Key financials H1 - Coal/Nuclear

pro forma

H1 2019

1 Gross cash (di-) investments: Sum of (di-) investments in (in-) tangible and financial assets, loans to non-consolidated affiliates and capital measures. | 2 Outright: Lignite and Nuclear. | 3 Financial hedged

• volume. | 4 Hedge margin after carbon costs. CO2 position financially hedged until end of 4th compliance period (2030). | Note: pro forma - new business segments. Former division Lignite & Nuclear plus German

hard coal and nuclear minorities for full FY2019.

Outlook 2020 €500 – 600m % >90% >90% Hedge ratio

Key sensitivities to our planning assumptions for 2020

Driver Segment Type Sensitivity Group impact1

August 2020 Investor Presentation Page 38

Wind levels Offshore Wind P&L +/- 10% production +/- €150 million CO2 prices RWE Group P&L +/- €1/t Hedged until 2030 Pension provisions RWE Group Germany B/S +/- 0.1%3

• €150/+€170 million4

Nuclear provisions RWE Group B/S +/- 0.1%3

• /+ €50 million

Mining provisions RWE Group B/S +/- 0.1%3

• /+ €140 million

RWE Group abroad B/S +/- 0.1%3

• €90/+€100 million4

1 All figures are rounded numbers. P&L figures refer to adjusted EBITDA. | 2 Earnings impact on unhedged position. For 2020 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 Nov 2019.

Onshore Wind/Solar P&L +/- 10% production +/- €100 million Power prices Offshore Wind and Onshore Wind/Solar P&L +/- 10% +/- €60 million2 Main f/x (USD & GBP) RWE Group P&L +/- 10% +/- €125 million

Page 39

Your contacts in Investor Relations

August 2020 Investor Presentation

Financial Calendar Important Links Contacts for Institutional Investors & Analysts

• Thomas Denny ( Head of IR )
• Tel. +49 201 5179-2346

thomas.denny@rwe.com

• Martin Vahlbrock

Tel.: +49 201 5179-3117 martin.vahlbrock@rwe.com

• Dr. Burkhard Pahnke

Tel.: +49 201 5179-3118 burkhard.pahnke@rwe.com

• Lenka Zikmundova
• Tel. +49 201 5179-3116

lenka.zikmundova@rwe.com

• Jérôme Hördemann
• Tel. +49 201 5179-3119

jerome.hoerdemann@rwe.com

• Susanne Lange
• Tel. +49 201 5179-3120

susanne.lange@rwe.com

• Charline Heßling
• Tel. +49 201 5179-3112

charline.hessling@rwe.com

Contact for Private Shareholders

• Annual and interim reports & statements

http://www.rwe.com/ir/reports

• Investor and analyst conferences

http://www.rwe.com/ir/investor-and-analyst-conferences

• IR presentations & further factbooks

http://www.rwe.com/ir/presentations

• IR videos

http://www.rwe.com/ir/videos

• Consensus of analysts’ estimates

http://www.rwe.com/ir/consensus-estimates ADR programme available Further information on our homepage RWE shares/ADR Contact for ADR-holders at BNY Mellon shrrelations@cpushareownerservices.com +1 201 680-6255 (outside from the US) 1-888-269-2377 (within the US)

• 12 November 2020

Interim statement on the first three quarters of 2020

• 16 March 2021

Annual Report for fiscal 2020

• 28 April 2021

Annual General Meeting

• 03 May 2021

Dividend payment

• 12 May 2021

Interim statement on the first quarter of 2021

• Dr. Holger Perlwitz
• Tel. +49 201 5179-5243

holger.perlwitz@rwe.com