In the past financial year, the debt crisis of several Eurozone member states cast dark shadows on the stock markets. The dramatic situation created by the Greek state budget crisis caused investors to have serious doubts about the monetary union’s stability. In addition, the rating agencies downgraded the creditworthiness of countries such as Spain, Portugal, Ireland and Italy. The share prices of banks which had invested in the government bonds of the affected countries also came under increasing pressure. Against this backdrop, the economic outlook deteriorated as well. All of this was mirrored by substantial drops in share prices on the stock market. Germany’s lead index, the DAX 30, declined from 6,914 to 5,898 points over the course of the year. It thus lost 15 % of its value. At times, it was down by more than 25 %. However, the downward trend was halted in September. By setting up a bail-out fund for Eurozone countries in financial crisis, which was enlarged significantly in the autumn, and announcing aid for distressed lending institutions, policymakers facilitated a marginal recovery of stock-market quotations. In the fourth quarter, the DAX returned to levels above 6,000 points on several occasions. The index managed to exceed this mark again at the beginning of 2012. It closed the month of January at 6,459 points.

Fiscal 2011 was also a weak year on stock markets for the utility sector. The European sector index, the Dow Jones STOXX Utilities, fell by 12 %. Shares of German energy utilities and RWE stock fared even worse: our common shares, which had traded at €49.89 at the end of 2010, declined in price to €27.15. The quotation for our preferred shares dropped from €47.99 to €25.44. This corresponds to total returns (return on the share price plus the dividend) of − 41 % (common stock) and − 42 % (preferred stock). Potential proceeds from subscription rights from the capital increase we conducted in December 2011 have not been considered here, as they are immaterial. A major reason for the weak performance of RWE shares is the U-turn in German energy policy following the reactor incident at the nuclear power station at Fukushima, Japan. The accelerated nuclear phase-out resolved by the German government is imposing substantial burdens on us. Furthermore, capital market participants have identified risks with respect to the implementation of our ongoing divestment programme and the outcome of the price reviews that are being conducted for our loss-making oil-indexed gas procurement contracts.

Monthly highs and lows of the RWE common share in 2011

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